MANILA -- The Land Bank of the Philippines (LANDBANK) has approved P17.4 billion in loans to 1,220 borrowers nationwide for the production of high-value crops, in line with ensuring food security for the country.

The loans will finance the production of highland and lowland vegetables, fruits, as well as industrial crops including abaca and bamboo. Spices, legumes, and alternative food staple crops such as soybean and root crops are also covered for financing under the LANDBANK Sulong Saka Lending Program.

“LANDBANK aims to promote the diversification of crop yields of our local farmers alongside ensuring food security. We will continue to support the production of high-value crops in the country through accessible and responsive credit assistance,” said LANDBANK President and CEO Cecilia C. Borromeo.

Aside from increased high-value crop production, farmers can avail of loans under the Program to finance related projects such as the establishment of nursery, and budwood or mother and plant or parent clone gardens, as well as for the establishment of new plantations, and the replanting, rejuvenation and rehabilitation of old trees.

Financial support under the LANDBANK Sulong Saka Program extends up to post-harvest crop activities such as fermentation and drying, including the processing and manufacturing of crops, like roasting, grinding/milling, packaging, and storing. Trading and export activities may also be financed under the Program.

Individual small farm holders may borrow up to 90% for a production loan, while a maximum of 80% may be borrowed by small and medium enterprises (SMEs), cooperatives, farmers associations and organizations, large agribusiness enterprises and corporations, non-government organizations (NGOs) and countryside financial institutions (CFIs).

The LANDBANK Sulong Saka Program can also finance up to 80% and 85% of the total project cost for the acquisition of fixed assets and commodity loans, respectively.

Local government units (LGUs) may likewise avail of financial support under the Program, provided that the loan amount will not exceed 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. An interest rate of 5% per year shall apply.

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. (LANDBANK)