The Land Bank of the Philippines (LANDBANK) has approved P17.4 billion in loans to
1,220 borrowers nationwide for the production of high-value crops, in line with
ensuring food security for the country.
The loans will finance the production of highland and lowland vegetables, fruits, as
well as industrial crops including abaca and bamboo. Spices, legumes, and
alternative food staple crops such as soybean and root crops are also covered for
financing under the LANDBANK Sulong Saka Lending Program.
“LANDBANK aims to promote the diversification of crop yields of our local farmers
alongside ensuring food security. We will continue to support the production of high-
value crops in the country through accessible and responsive credit assistance,” said
LANDBANK President and CEO Cecilia C. Borromeo.
Aside from increased high-value crop production, farmers can avail of loans under
the Program to finance related projects such as the establishment of nursery, and
budwood or mother and plant or parent clone gardens, as well as for the
establishment of new plantations, and the replanting, rejuvenation and rehabilitation
of old trees.
Financial support under the LANDBANK Sulong Saka Program extends up to post-
harvest crop activities such as fermentation and drying, including the processing and
manufacturing of crops, like roasting, grinding/milling, packaging, and storing.
Trading and export activities may also be financed under the Program.
Individual small farm holders may borrow up to 90% for a production loan, while a
maximum of 80% may be borrowed by small and medium enterprises (SMEs),
cooperatives, farmers associations and organizations, large agribusiness enterprises
and corporations, non-government organizations (NGOs) and countryside financial
institutions (CFIs).
The LANDBANK Sulong Saka Program can also finance up to 80% and 85% of the
total project cost for the acquisition of fixed assets and commodity loans,
respectively.
Local government units (LGUs) may likewise avail of financial support under the
Program, provided that the loan amount will not exceed 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. An interest rate of 5% per year shall apply.
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.
