LANDBANK lends P5.8-B to boost climate resiliency of agri sector

In support of building a climate-resilient agri-business value chain in the country, the
Land Bank of the Philippines (LANDBANK) has approved loans totaling P5.8 billion to
15 borrowers as of 30 June 2022.

Through the LANDBANK Climate Resilient Agriculture Financing Program, the Bank
aims to finance farming technologies, systems, facilities and equipment that will help
local farms and fisheries become more adaptive and resilient to the effects of climate
change, such as severe storms and prolonged drought.

“LANDBANK supports investments in innovative technologies that will help address
climate change risks in the agriculture sector. This modernization is aimed towards
improving the production and income of our local farmers while ensuring national
food security amid the changing global climate,” said LANDBANK President and CEO
Cecilia C. Borromeo.

The Program can finance crop, livestock, and fishery projects that utilize climate-
resilient technologies, such as the adoption of planting materials and seedling
techniques for climate-resistant food crops, pipe irrigation that helps prevent water
loss during dry season, and climate-adaptive farming systems such as terracing.

Modern facilities and equipment that minimize harvest and post-harvest losses during
typhoons can also be financed under the Program, including rice harvesters, dryers
and outdoor grain storage facilities.

The Program can also provide credit fund for working capital and the construction of
facilities such as greenhouses, reservoirs, rainwater collecting systems, and farm-to-
market roads with drainage, and other new and emerging technologies approved and
endorsed by the Department of Agriculture (DA) and the concerned Municipal
Agricultural Office.

Under the LANDBANK Climate Resilient Agriculture Financing Program, cooperatives,
associations, and private borrowers categorized as single proprietorships,
partnerships, or corporations may borrow up to 80% of the total project cost.
Meanwhile, local government units (LGUs) may borrow not more than their net
borrowing capacity as certified by the Bureau of Local Government Finance (BLGF).

Term loans for working capital and permanent working capital are payable up to one
(1) year and three (3) years, respectively, while loans for fixed assets and
construction of facilities are payable based on cash flow but not more than its
economic useful life. The interest rate shall be based on the prevailing market rate.

The LANDBANK Climate Resilient Agriculture Financing Program underscores the
Bank’s commitment towards advancing a more resilient agriculture sector while
promoting environmental sustainability.

Meanwhile, in his recent State of the Nation Address (SONA), President Ferdinand
Marcos, Jr. identified climate change and its impact on agriculture as one of the top
priorities of his administration.

Through the years, LANDBANK has grown into one of the leading universal banks in
the country, while remaining faithful to its social mandate to promote inclusive and
sustainable development.

On 8 August 2022, the state-run Bank celebrated its 59th anniversary, representing
almost six decades of service to the nation.

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