Government controlled agribusiness program in state colleges and universities (SCUs): the CLSU model

Although the revolving fund concept which is the basis of the operation of the University Agribusiness Program (UAP) has been followed at CLSU since 1980, based on National Budget Circular (NBC) 331, its institutionalization as a fourth function of the University is a relatively new development. Tasked to effectively and efficiently operate and manage school agri-based IGP's which complement instruction, research and extension, the UAP has gone a long way. The research and extension as well as the instructional groups look at the UAP as an arm of technology transfer, commercialization and entrepreneurial education and training, for wider utilization of results of research and extension modeling for sustainable countryside development. The UAP is a veritable agribusiness venture for providing faculty, staff and students, as well as individual farmers and oranizations, to learn the ropes of agricultural project management and enterprise building. Exposure to and actual participation in viable large scale projects of the UAP, being managed by competent faculty and staff of the University is a creative educational vehicle, besides being the University's fund source for modernizing higher education, especially agriculture education in support to agro-industrialization. To thousands of students and visitors who has made the University an agro-tourist destination year-round, the UAP serves as a show window from which farmers, entrepreneurs, and organized groups gain valuable experiences. These agribusiness projects, in support of entrepreneurial education could also be the cutting-edge of poverty elimination and rural development. The UAP has a total of 24 different projects covering an aggregate area of about 200 has out of the 658 has of the University Campus. During the seven-year operation of the UAP, it has generated a total of Php 123.12 M gross income with an average of Php 17.59 M annual gross income and average net income of Php 4.29 M annually or 32.30 percent ROI. The net profit generated from the different projects is allocated as follows: 10% as University Share; 10% for project managers; 15% for project laborers; 10-20% for Capital Build-up (CBU); and 55% treated as UAP Special Project Fund (USPF) which is apportioned on the following items: 50% for funding requests of equipment, supplies and materials from the different Colleges and Units of the University and other expenses as spelled out in the NBC 331; 5% for Scholarship and Student Assistantship. Added benefits from UAP for faculty and staff of the University is that prices of commodities are sold at 10% to 50% lower than the outside market prices