In fulfillment of its social mandate of promoting countryside development, the Land
Bank of the Philippines (LANDBANK) posted a total of P713.8 billion in
outstanding loans directed to agriculture and rural development as of 30 June 2023.
The P713.8 billion represents 69% of LANDBANK's total loan portfolio of P1.04
trillion, which is close to three times the 25% requirement for local banks to
allocate financing for agriculture, fisheries and rural development (AFRD) under
Republic Act No. 11901 or “The Agriculture, Fisheries and Rural Development
Financing Enhancement Act of 2022.”
Under the new law, AFRD financing is defined as loans and investments to
finance activities that shall enhance productivity and increase income of an
agricultural and fisheries household, thereby promoting productivity and
competitiveness in the agricultural sector, as well as sustainable development of
rural communities.
LANDBANK remains steadfast in fulfilling its primary development mandate to
advance the country’s agricultural sector. With a holistic approach covering all players
in the value chain, we will continue to extend accessible and responsive
financing to ramp-up agriculture modernization and productivity, paving the
way for more resilient local communities," said LANDBANK President and CEO
Lynette V. Ortiz.
LANDBANK’s computation follows the new AFRD law and its implementing rules
and regulations (IRR) recently issued by the Bangko Sentral ng Pilipinas (BSP).
Of the P713.8 billion in outstanding loans, LANDBANK dedicated P107.8 billion
to agriculture and fisheries production, which includes funding for the processing of
fisheries and agri-based products and farm inputs.
To help fast-track agri modernization, the Bank channeled P70.4 billion for
the digitalization and automation of farming, fishery, and agri-business
activities and processes, including related financial and management information
systems.
LANDBANK also provided P78.5 million for agri-tourism projects, which involve
attracting visitors and tourists to farm areas for production, educational and
recreational purposes.
A significant portion of the AFRD loans totaling P244.1 billion ramped-up public
rural infrastructure development, covering highways, streets, bridges, transport
systems, irrigation, public markets, slaughterhouses, warehouses, solid waste
management, flood control, drainage, and other essential infrastructure and
development projects.
Meanwhile, another P167 billion backed sustainable projects that provide lasting
benefit for both clients and society while reducing pressures on the environment. This
also covers green finance which funds climate change mitigation and adaptation
projects, among others.
The rest of the LANDBANK AFRD financing supported farm and fishery
entrepreneurial activities; agricultural mechanization; agricultural and fishery
commodities; essential facilities, equipment and machineries; capacity-building
activities; and projects that promote the health and wellness of farmers, fishers
and Agrarian Reform Beneficiaries (ARBs), including members of their households.
As the country’s premier financial institution dedicated to agricultural and
rural development, LANDBANK is celebrating on 8 August 2023 its 60th
anniversary of serving the nation.
