NEGROS ISLAND SAVINGS & CREDIT COOPERATIVE

A Briefer

I.    NISCO BACKGROUND

The Negros Island Savings and Credit Cooperative was organized on May 31, 2006 to address the prevailing economic unrest. Majority of the ARBs are poor with very few opportunities to rise from poverty. Agrarian Reform Beneficiaries’ cooperatives experienced difficulty in accessing support services from the government Micro Finance Institution. Due to this, most of the farmers either borrowed capital from private individuals who charge exorbitant rates, sublease their farm lots and engaged in financing scheme agreement.

Several fora and consultation meetings were initiated by TFM - Productivity Improvement Program (PIP) to discuss issues and concerns by the less fortunate farmers. It was emphasized that the mere transfer of land ownership and its operation in smaller parcels without the corresponding support services and adoption of appropriate production technology had least impact on increasing farmers’ income.

To complement the land transfer and assist the agrarian reform beneficiaries (ARBs), the Negros Island Savings and Credit Cooperative (NISCO) was organized to facilitate accessing of support services for production support, micro finance and generation of internal capital to ensure the sustainability of the cooperative. NISCO was established by 20 founding farmers and professionals who infused capital and believed in the importance and value of savings. It is registered with the Cooperative Development Authority (CDA) last May 12, 2008.

On November 22, 2007, TFM donated an initial capital to NISCO amounting to 1.4 Million which will be used for its Agricultural Credit & Micro Finance Program. Around 451 farmers availed for sugarcane production. Further, TFM tapped the expertise of MASS-SPECC or Mindanao Alliance of Self-Help Societies – Southern Philippines Educational Cooperative Center to strengthen the capabilities of NISCO in Agricultural Credit and Micro Finance.

The cooperative aims to address poverty through agricultural credit and micro finance for self-reliance. It also actively seeks out co-financing from government and financing funding institutions that share the NISCO Vision.

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