The Land Bank of the Philippines (LANDBANK) continues to firm up its support to the
agriculture sector, with outstanding loans reaching P271.8 billion as of 31 March
2023 – a 14.8% year-on-year growth from P236.8 billion in the same period in 2022.
Of the Bank’s agri loans, P42.3 billion directly benefitted small farmers and fishers,
including those which were channeled through cooperatives and farmers’
associations, rural financial institutions and other conduits.
“LANDBANK continues to provide accessible financing for small farmers and fishers,
as well as the whole agri-value chain. We are fully committed to supporting the
National Government’s efforts to ensure food security towards advancing growth
that is sustainable and inclusive,” said LANDBANK President and CEO Cecilia Cayosa
Borromeo.
As support to other agri-value chain players, LANDBANK extended P181.2 billion to
finance the requirements of small, medium and large agribusinesses.
The remaining P48.3 billion in loans backed agri- and aqua-related projects of local
government units (LGUs) and government-owned and controlled corporations
(GOCCs).
In terms of economic activities, P64.5 billion of the agri loans were channeled to
boost livestock and crop production, while P120 billion accounted for loans for agri-
processing and trading.
Meanwhile, P87.3 billion supported the construction and improvement of essential
agri infrastructures such as public markets, farm-to-market roads, warehouses, cold
storages, and irrigation systems, among others.
Intensified support to rice, coconut industries
In support of the National Government’s thrust to boost palay production and ensure
sufficient rice supply in the country, the Bank continues to ramp up its lending
activities to rice farmers and other rice industry stakeholders.
As of end-March 2023, LANDBANK’s outstanding loans to the local rice industry has
reached P9.7 billion to finance requirements for palay production and processing,
such as farm inputs, machineries, equipment, and facilities, among others.
Apart from loans, the Bank has also distributed cash grants amounting to P1.5 billion
to 291,241 farmer-beneficiaries nationwide under the Rice Competitiveness
Enhancement Fund – Rice Farmers Financial Assistance (RCEF-RFFA) Program, in
partnership with the Department of Agriculture (DA).
LANDBANK likewise continues to provide responsive credit assistance to the coconut
sector with outstanding loans amounting to P643 million, benefitting coconut
farmers and other stakeholders engaged in the production and processing of
coconut-based products.
Earlier this year, LANDBANK launched its new Coconut Farmers and Industry
Development (CFID) Lending Program, in support of the Coconut Farmers and
Industry Development Plan (CFIDP) spearheaded by the DA and the Philippine
Coconut Authority (PCA).
Under the Program, eligible coconut farmers, cooperatives and associations can
access financing for various projects, including the establishment of intercrops and
poultry or livestock integration in coconut farms.
Individual coconut farmers can use the loan to increase production and working
capital, to acquire machines and equipment, and establish necessary facilities.
Coconut cooperatives and associations can also utilize the financing for relending
and rediscounting to their members.
LANDBANK will provide short-term and long-term loans with a fixed affordable
interest rate of 2% per annum.
