The Land Bank of the Philippines (LANDBANK) ensures that it will be working closely
with government partners for the seamless and immediate implementation of the
new law that frees agrarian reform beneficiaries (ARBs) nationwide from agrarian
debts, in line with efforts to boost and modernize the agriculture sector.
The National Government is writing-off land amortizations managed by LANDBANK
amounting to P57.74 billion as of 30 June 2023—effectively relieving over 649,000
ARBs tilling 1.17 million hectares of land debt.
The condonation is part of the landmark Republic Act No. 11953 or the New Agrarian
Emancipation Act signed by Philippine President Ferdinand R. Marcos, Jr. on 7 July
2023.
Of the P57.74 billion, the National Government will condone outright P14.56 billion in
principal loans of over 263,000 ARBs upon the effectivity of the law.
The Department of Agrarian Reform (DAR), in coordination with LANDBANK, will also
expedite the processing of the remaining P43.17 billion principal loans of over
385,000 ARBs.
“We are proud to be part of this landmark initiative of the Marcos Administration to
free farmers from debt and help them start anew. LANDBANK will likewise continue
to pour investments and extend support initiatives for farmers nationwide to boost
their productivity and income,” said LANDBANK President and CEO Lynette V. Ortiz.
The New Agrarian Emancipation Act condones all loans, including interests,
penalties, and surcharges incurred by ARBs from land awarded to them under
Presidential Decree 27 (Tenant Emancipation Decree issued in 1972), Republic Act
No. 6657 (Comprehensive Agrarian Reform Law of 1988), and Republic Act No. 9700
(An Act strengthening the CARP and extending the acquisition and distribution of
agricultural lands, issued in 2009).
The DAR will issue the implementing rules and regulations of the new law, in
coordination with the Presidential Agrarian Reform Council Executive Committee
(PARC ExCom) and with the technical expertise of LANDBANK, within 60 days from
the issuance of the Act.
For his part, Agrarian Reform Secretary and LANDBANK Board Member Conrado M.
Estrella III lauded Congress for the immediate passage of the law, and expressed
gratitude to LANDBANK for its consistent support to ARBs over the years.
“Nagpapasalamat din po kami sa mga taga-LANDBANK sapagkat sila po ay very
active na nagbibigay po ng credit assistance sa ating mga ARBs,” he said.
LANDBANK has extended P2.7 billion in loans to 2,356 individual ARBs and 469 ARB
cooperatives and farmers’ associations nationwide.
Apart from credit assistance, LANDBANK also provides financial literacy and
capability-building seminars to make sure borrowers are equipped with basic
financial knowledge to manage their finances and boost their income.
