The Land Bank of the Philippines (LandBank) said its outstanding loans to the agriculture sector last year grew by 4.31 percent year-on-year to P247.85 billion.
LandBank said in a statement that its outstanding loans to the agriculture sector last year was P10.23 billion higher than the P237.62 billion recorded in 2020.
With the increase in outstanding loans, the bank said it was able to surpass its target of 3.2 million farmers and fisherfolk beneficiaries nationwide.
“Assisting over 3.2 million farmers and fishers underscores LandBank’s intensified support to the agriculture sector. We will continue to promote recovery and renewed growth for agri players and other development industries, as part of our expanded and holistic approach in serving the nation,” LandBank President and CEO Cecilia C. Borromeo said over the weekend.
LandBank said P38.83 billion of its outstanding agricultural loans last year “directly benefited small farmers and fisherfolk,” including loans that were channeled through cooperatives and farmers associations.
“A total of P155.66 billion supported small, medium, and large agribusiness enterprises, while the remaining P53.36 billion aided agri-aqua related projects of local government units (LGUs) and government-owned and -controlled corporations.”
LandBank said about P60.4 billion of its total agricultural loans last year financed crops, livestock, and fisheries, while P88.25 billion was channeled for agri-processing and trading.
“The remaining P99.19 billion backed the construction and improvement of essential infrastructure such as public markets, farm-to-market roads, warehouses, cold storages, irrigation systems, and slaughterhouses.”
LandBank said about 2.32 million or 72 percent of the total farmers and fisherfolk beneficiaries last year were supported through the bank’s regular loan programs, including lending programs administered for the Department of Agriculture (DA) and the Department of Agrarian Reform (DAR).
“As of December 31, 2021, LandBank has released a total of P11.95 billion for the benefit of 296,636 farmers and fishers under the programs administered for the DA.”
“These include the Agricultural Competitiveness Enhancement Fund, Socialized Credit Program under the Sugarcane Industry Development Act, Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund, Survival and Recovery Assistance Lending Program, and Expanded SURE Aid and Recovery Project.”
LandBank said it released P679.92 million worth of loans to 10,170 small farmers, particularly agrarian reform beneficiaries and small farm holders, through the Credit Assistance Program for Program Beneficiaries Development and Expanded Assistance to Restore and Install Sustainable Enterprises for Agrarian Reform Beneficiaries and Small Farm Holders. The two loan programs are in partnership with DAR, the bank said.
LandBank added that it assisted 796,311 beneficiaries under the DA’s Rice Farmer Financial Assistance and Financial Subsidy to Rice Farmers Programs, with 62,020 of which availing the SURE Aid Program. LandBank said the remaining 187,690 beneficiaries received capacity building training through the bank’s Countryside Development Foundation Inc. program.
“LandBank continues to support the agriculture sector as part of its social mandate of promoting countryside development, alongside servicing the financial needs of micro, small and medium enterprises, countryside financial institutions, LGUs, and government institutions.”