MANILA -- As Land Bank of the Philippines (LANDBANK) celebrates its 59th anniversary on 8 August 2022, the state-run Bank remains committed to servicing the development requirements of small farmers, fishers, and other key players in the agri-business value chain, as loans to the agriculture sector reached P257.7 billion as of 30 June 2022.
The P257.7 billion total outstanding loans translate to a 15.5% increase from the same period a year ago, further solidifying LANDBANK’s position as the biggest lender to the agriculture sector in the country.
“LANDBANK stands ready to extend accessible credit to all agri players to boost the country’s food production and supply. We will continue ramping up our lending activities in full support of the new administration’s agricultural modernization agenda,” said LANDBANK President and CEO Cecilia C. Borromeo.
Of the P257.7 billion total outstanding loans, P37.5 billion benefited small farmers and fishers, including those which were channeled through cooperatives and farmers’ associations, rural financial institutions, and other conduits.
A total of P163.1 billion supported small, medium, and large agribusiness enterprises, while the remaining P57 billion aided agri-aqua related projects of local government units (LGUs) and government-owned and controlled corporations (GOCCs).
The loans were used to finance various economic activities, including P56.7 billion for livestock, crops and fisheries production, and P122.2 billion for agri-processing and trading of rice, corn, and sugarcane, among others.
A total of P78.8 billion also backed the construction and improvement of essential agriculture infrastructure such as public markets, farm-to-market roads, warehouses, cold storages, irrigation systems, and slaughterhouses.
In the first six months of 2022, LANDBANK also assisted in the construction and improvement of 138 kilometers of farm-to-market roads—which is one of the priorities in President Ferdinand Marcos, Jr.’s development plan for the agriculture sector.
Agri-Mechanization Financing Program
In support of the President’s long-term goal to modernize agricultural production, LANDBANK has been offering the Agri-Mechanization Financing Program designed to promote mechanization of production and post-production processes, from planting to harvesting and processing, thereby increasing efficiency, reducing post-harvest losses and lowering production costs.
The LANDBANK Agri-Mechanization Financing Program has supported 53 micro and small enterprises and cooperatives with cumulative loan releases totaling P681.5 million as of end-June 2022.
More Small Farmers and Fishers Assisted
By adopting a more focused and direct lending approach, LANDBANK has cumulatively assisted more than 3.3 million farmers and fishers nationwide, of which 566,462 or 17% came from the 20 poorest provinces in the country.
The top provinces with the highest number of beneficiaries include Nueva Ecija, Maguindanao, Bohol, Pangasinan, Cotabato, Isabela, Cagayan, Leyte, Ilocos Sur, and South Cotabato.
LANDBANK’s close collaboration with the Department of Agriculture (DA) and the Department of Agrarian Reform (DAR) has also allowed it to reach and serve more farmers and fishers.
As of 30 June 2022, LANDBANK has extended a total of P13.3 billion to 247,591 borrowers under the programs it is administering for DA, and another P719.4 million to more than 200 agrarian reform beneficiary (ARB) organizations benefiting over 11,000 ARBs and small farm holders under DAR’s programs.
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, representing almost six decades of service to the nation. (LANDBANK)
