What is the Corn Development Fund (CDF)?

Memorandum Order No. 468 dated March 17, 1998 provided that proceeds from the 1998 importation of cron shall be held in trust by the National Food Authority (NFA) to be issued fpr corn development projects. The net proceeds amounting to P124.1M has made the seed capital of the CDF. In 2007, P65.9M representing service fees from corn importation was added to CDF bringing the total CDF principal amount to P190M. The CDF is available to corn industry stakeholdres as a grant and soft loan.

What is its Purpose?

The CDF provides funding for projects geared towards the development of the corn industry, especially for the following:
1. Acquisition and installation of modern corn production equipment, post-harvest and marketing facilities;
2. Conduct of trainings, seminars and/or workshops that will enhance their skills and productivity;
3. Conduct of corn related studies, especially in the areas of production, marketing and processing; and,
4. Adoption of a mechanism that will link various sectors of the corn industry to promote its integrated growth and development.

Who administers the fund?

Corn Development Fund Committee (CornDev Committee)
The CornDev Committee manages and administers the CDF. It is composed of 2 representatives from the corn producers’ sector; 2 representatives from the corn users’ sector, and, 3 representatives from the government sector.
The CornDev Committee is chaired by the NFA Administrator.
CDF - Secretariat
The CDF-Secretariat renders the necessary secretariat and other related services to the CornDev Committee. It facilitates release of loans/grants to CornDev beneficiaries and safekeeps records of approved projects.
CDF - Technical Working Group (CDF-TWG)
The CDF-TWG evaluates projec proposals for possible funding, oversees the implementation and monitoring of CDF-funded projects and conducts advocacy.
CDF - Provincial Support Group (CDF-PSG)
The CDF-PSG is composed of the NFA Provincial Manager as the head, and qualified provincial staff in the project area. It conducts initial screening of applicants based on eligibility requirements. The PSG monitors implementation of the project in concerned areas and submits status reports to the TWG.

Who are the target beneficiaries/qualified applicants/proponents?

1. Federation/Association/Cooperatives of corn farmers registered with the Cooperative Development Authority (CDA)
2. Industry Association/Federation of Livestock and Poutry Raisers and Feedmillers registered with the CDA and/or Securities and Exchange Commisstion (SEC)
3. National Food Authority
Except for NFA, proponents must have been engaged in any or all of the following acitivities: production, processing and marketing of corn for at least two(2) years. For loan applicants, it must have surplus/retained earnings based on the audited Financial Statements for the period/year immediately preceding the time of application.

How can the CDF be availed of?

There are two (2) schemes on how the CDF could be availed of:
A. Grant
   1. Developmental Projects. This includes value-adding projects such as studies or research for the acquisition and adoption of advanced technologies.
   2. Human Resource Development. This includes specialized trainings, seminar-workshops or study tours which will further improve the level ofknowledge, attitude and/or skills of the proponents.
   3. Advocacy. this includes conferences, conventions, congress, symposia or information drives that should be able to highlight and feature the latest technology or development.
Maximum amount of grant is P500,000.00 for Nos. 1 & 2; and, P300,000.00 for No.3.
B. Loan
Loan can be availed of to fund the construction or establishment of corn storage facility/warehouse, or purchase of production and post harvest facilities for corn. The loan shall be secured by a Real Estate or Chattel Mortgage, and payable semi-annually for five, seve or ten years. The loan waived if the principal amortization is paid on or before the due date. The loan may be availed of at a minimum amount of P3 M to a maximum amount of P10 M or an amount as may be approved by the CDF Committee.

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