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.
###
