State-run Land Bank of the Philippines (LANDBANK) continues to pour significant
financial support to the agriculture sector, with outstanding loans reaching P261.7
billion as of 31 December 2022 for a 5.5% year-on-year growth from P247.9 billion
in 2021.
LANDBANK’s outstanding loans to the agriculture sector likewise sustained its
upward trajectory with an average growth rate of 10.4% from 2012 to 2022.
“LANDBANK continues to service the growth requirements of all players in the
agribusiness value chain, making it the biggest lender to the agriculture sector. We
remain committed to delivering timely and accessible credit to boost economic
activities in the countryside and the country’s overall food production,” said
LANDBANK President and CEO Cecilia Cayosa Borromeo.
Of the total P261.7 billion agri loans, P46.6 billion directly benefited small farmers
and fishers, including those which were channeled through cooperatives, farmers’
associations, rural financial institutions, and other conduits.
Meanwhile, a total of P166.8 billion supported small, medium, and large agribusiness
enterprises, while P48.3 billion backed the agri-aqua-related projects of local
government units (LGUs) and government-owned and controlled corporations
(GOCCs).
In terms of economic activities, financing for livestock and crop production
accounted for P66.5 billion of the Bank’s total agri loans, while P107.4 billion was
channeled to agri-processing and trading.
The remaining P87.8 billion was used to finance other support services, including the
construction and improvement of farm-to-market roads, public markets, irrigation
systems, and cold storages, among others.
More farmers and fishers assisted
LANDBANK’s intensified support to the agriculture sector has translated to 3.5 million
farmers and fishers assisted nationwide. More than 766,000 or 22% of these came
from the 20 poorest provinces in the country, further advancing its efforts to
promote inclusive and sustainable development.
Meanwhile, the top provinces with the highest number of beneficiaries assisted by
the Bank are Nueva Ecija, Maguindanao, Bohol, Leyte, Pangasinan, Cotabato,
Isabela, Cagayan, South Cotabato, and Ilocos Sur.
For 2023, the Bank is targeting to increase the number of small farmers and fishers
cumulatively assisted to 3.6 million, among other key players in the agri-business
value chain.
LANDBANK is also partnering with the Department of Agriculture (DA) and the
Department of Agrarian Reform (DAR) to reach and serve more farmers and fishers.
As of end-December 2022, the Bank’s cumulative loan releases under the programs
jointly implemented with DA have reached P15.3 billion to support over 252,000
borrowers. The Bank also released P751.7 million to 229 agrarian reform
beneficiaries’ organizations (ARBOs) under the programs it jointly implements with
DAR.
LANDBANK is likewise working with LGUs nationwide for the construction and
rehabilitation of infrastructure projects crucial to creating an efficient agriculture
value chain.
These include financing for the construction of 953.7 kilometers of farm-to-market
roads, 4.5 kilometers of bridges, 50 public markets, and 14 irrigation systems,
among others, from January to December 2022 alone.
