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The Rural Credit Law January 20, 1908

The Rural Credit Law was passed in 1908 to establish agricultural credit cooperatives and protect farmers, with the first being formed in Nueva Ecija. By the end of 1926 there were 544 cooperatives nationwide, but by 1935 around 90% were inactive with no funds. The Cooperative Marketing Law was passed in 1927 but only 164 societies with 5,000 members were actually formed by 1939. The ACCFA was created in 1952 to provide credit to small farmers, and there were 600 FACOMAS cooperatives by the end of 1957 scattered across the country. The Cooperative Code was passed in 1990 with the support of Senators Pimentel and Aquino to promote cooperative development through the new Cooperative Development Authority.

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349 views2 pages

The Rural Credit Law January 20, 1908

The Rural Credit Law was passed in 1908 to establish agricultural credit cooperatives and protect farmers, with the first being formed in Nueva Ecija. By the end of 1926 there were 544 cooperatives nationwide, but by 1935 around 90% were inactive with no funds. The Cooperative Marketing Law was passed in 1927 but only 164 societies with 5,000 members were actually formed by 1939. The ACCFA was created in 1952 to provide credit to small farmers, and there were 600 FACOMAS cooperatives by the end of 1957 scattered across the country. The Cooperative Code was passed in 1990 with the support of Senators Pimentel and Aquino to promote cooperative development through the new Cooperative Development Authority.

Uploaded by

Jinky Valdez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The Rural Credit Law January 20, 1908.

The unanimous approval of the bill that aims to protect and develop the agricultural interest of
the country, which was prepared by the then-governor of Bulacan, Teodoro Sandiko, after the
Raiffeisen type of credit union. It was also sponsored by Rep. Albert Barreto of Zambales in the
lower House of Congress.

October 18, 1916


The administration of the Rural Credit Law was entrusted to the Bureau of Agriculture. The first
rural credit association that was organized under this Law was the Agricultural Credit
Cooperative Association of Cabanatuan, Nueva Ecija.
At the end of 1926
there were 544 rural credit cooperatives organized in the 42 provinces and by 1930 there were
571 associations formed all over the country.
In 1935
about 90% of these cooperatives were inactive with no funds left in their treasury. The
experiment on rural financing, through cooperatives was a failure.

Marketing Cooperatives December 9, 1927


The approval of the Cooperative Marketing Law (Act 2425) when the organization of rural credit
was in full swing. (The rural credit associations were designed to help finance the productive
efforts of the farmers)
By 1939
Only 164 societies were actually organized with a total membership of around 5,000 farmers.
With this number only 35 reported their sale of products to the Bureau of Commerce.

The ACCFA Financing Program.


1952
The Congress of the Philippines enacted Republic Act 821. This law established a system of
liberal credit which is specially designed to meet the needs of the small farmer. It also created
an administrative agency known as the Agricultural Credit and Cooperative Financing
Administration (ACCFA). 
At the end of 1954
there were 169 farmers’ cooperative associations in operation
1956
there were a total of 319 FACOMAS organized and supervised by ACCFA.
At the end of 1957
there were about 600 FACOMAS scattered all over the country.

Cooperative Federations. 
1986
With the recreation of democratic space, the cooperative leaders lobbied aggressively for the
adoption of a cooperative-friendly legislation.
March 10, 1990
They got all out support of Senators Aquilino Pimentel, Jr. and Agapito Aquino in having the Bill
passed and signed as law (R.A. No. 6938) by President Corazon C. Aquino. A companion law
was also passed creating the Cooperative Development Authority (RA NO. 6939) which
provided the abolition of the Bureau of Agricultural Cooperatives Development (BACOD). With
the passage of the Code, a powerful instrument for economic progress and development has
been placed in the hands of the people.

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