State-run Land Bank of the Philippines (LANDBANK) remains aggressive in extending affordable financing for individual farmers and fishers, and other players in the agriculture value chain through loan programs jointly implemented by the Bank with the Department of Agriculture (DA).
The third run of the LANDBANK AgriSenso Virtual Forum on 19 September 2022 featured loan availers, namely Kuvi Integrated Farm owner Rogelio T. Giangan from North Cotabato, rice farmer Vanessa Morillo from Sto. Niño, Cagayan, and Dampe Palay and Sugarcane Producers Cooperative Chairperson Rodolfo H. Medina from Floridablanca, Pampanga, who shared how their productivity and income improved following the financial support from LANDBANK and DA.
LANDBANK Program Management Department I Head, Assistant Vice President Edgardo S. Luzano discussed available financing with as low as 2% annual interest rate for individual farmers and fishers and their cooperatives and associations, as well as for micro and small enterprises (MSEs).
Under the Agricultural Competitiveness Enhancement Fund (ACEF) Lending Program, LANDBANK provides credit assistance for the purchase of farm inputs and acquisition of agricultural fixed assets. The loanable amount for individual farmers and fishers is up to P1 million, while cooperatives, associations and MSEs may borrow a maximum of P5 million.
As of 31 August 2022, the Bank has released a total of P8.1 billion in loans to over 35,500 borrowers under the ACEF Lending Program.
LANDBANK also implements the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF), which aims to help increase the productivity, efficiency and profitability of rice farmers and their cooperatives. Eligible program borrowers may avail of up to 90% of their total project cost.
Since the implementation of ERCA-RCEF in 2019, a total of P1.7 billion in loans has been released to more than 5,700 borrowers, including 46 cooperatives and associations that assisted over 18,300 farmers and fishers.
In support of the development of the country’s sugar industry, LANDBANK is also implementing the Socialized Credit Program under the Sugarcane Industry Development Act (SCP-SIDA). This facility is made available to individual sugarcane farmers, cooperatives, associations and common service centers, to finance up to 90% of their total project cost or financing requirement.
As of end-August 2022, the Bank’s loan releases under SCP-SIDA amounted to P612.3 million for 2,651 borrowers, benefiting over 6,700 sugarcane farmers.
The next run of the AgriSenso Virtual Forum will be held on 26 September 2022 to discuss other lending programs designed for small farmers and fishers, and agrarian reform beneficiaries (ARBs).