DUMINGAG, Zamboanga del Sur – Unhappy and longing for his family while working away
at sea, Allan A. Ayco decided to disembark from the boat and his former life as a seafarer,
returning to his home in Dumingag to make a living cultivating his farmland.
But like the other small farmers in town in need of capital, Ayco was forced to deal with
informal lenders who charged high interest rates from 10% to up to 20% per month. He
felt helpless against the unfair interest rates brought about by the monopoly of the post-
production market by informal lenders.
But things started to look up for Ayco and other farmers in Dumingag when LANDBANK
conducted site visits in the province and offered low-interest loans for production
requirements under then newly-launched LANDBANK Sikat Saka Program.
“Malaking tulong talaga ang pagpasok ng LANDBANK sa buhay ko. Tuwang-tuwa kami sa
Sikat Saka Program. Hindi lang sa mababa ang interes, madali lang din ang proseso ng
pag-apply,” said Ayco.
Ayco was one of the first farmers in the area to avail of a loan under the Sikat Saka
Program. Through the assistance of LANDBANK, Ayco enjoyed low interest of 0.75% to
1.25% per month under the Program from 2013 to 2019.
Since joining the formal credit system, Ayco said his income increased with every cropping
cycle, allowing him to provide a better life for his family. He was able to save enough
income to hire other farmers for planting services, as well as procure tractors and
harvesting services that he rented out to other farmers in the area.
“Malaking tulong sa amin ang Sikat Saka Program. Kaya nga’t kusang loob akong
nanghingkayat rin ng mga katulad kong magsasaka. Sinabi ko na maganda ito. Basta
dapat aalagaan mo yung utang mo. Dapat maayos yung pagbayad mo para di siya
mawala,” Ayco shared.
Aside from accessible financial support, Ayco and the other farmers in the area were also
provided with support services and capacity building trainings by LANDBANK and its
partner agencies.
However, the onset of the pandemic in 2020 closed the borders around the Zamboanga
Peninsula and significantly affected their livelihood, which prevented them from renewing
their credit line with LANDBANK for the next cropping season. Ayco shared that it was a
difficult season.
So he was grateful when the health restrictions were finally eased and the LANDBANK
Zamboanga del Sur Lending Center reached out to him and other farmers and to introduce
the Agricultural Competitiveness Enhancement Fund (ACEF) Lending Program. As a long-
time client of the Bank, Ayco was granted financing anew with low interest rates under the
ACEF Lending Program to fund his rice production.
“Malaki talaga ang pasasalamat namin sa LANDBANK dahil sa naitulong nila sa aming mga
magsasaka. Sana magpatuloy pa rin ang pagtulong ninyo sa amin,” Ayco said.
The ACEF is a direct lending program administered by LANDBANK in partnership with the
Department of Agriculture (DA), which aims to increase the productivity and income of
farmers and fishers, their cooperatives and associations, as well as micro and small
enterprises (MSEs).
The ACEF Lending Program finances farming needs such as the acquisition and
establishment of production, post-harvest and processing machineries, equipment and
facilities, farm inputs, and improvements.
As of 31 October 2022, LANDBANK has released under the ACEF lending program a total
of P8.5 billion to support over 32,200 borrowers nationwide.
Interested borrowers may contact the nearest open LANDBANK Lending Center or Branch
nationwide or call LANDBANK’s customer service at (02) 8-405-7000 or at PLDT Domestic
Toll Free 1-800-10-405-7000.
