Landbank’s agriculture loan portfolio expands to P230 billion in 9 months

MANILA, Philippines — The Land Bank of the Philippines’ total loan portfolio to the agriculture sector expanded to P230.34 billion as of end-September, as its intensified lending activities enabled it to reach more than two million farmers this year.

Landbank president and chief executive officer Cecilia Borromeo said the bank’s agricultural loan portfolio further increased from the P224.66 billion recorded at the end of August.

This already accounts for 94 percent of Landbank’s outstanding loan target of P245 billion by the end of the year.

Of this amount, P34.97 billion were lent to small farmers and fishers, cooperatives, farmers associations, rural financial institutions and other conduits, while P195.36 billion went to other players in the agribusiness value chain.

The expansion of Landbank’s loan portfolio to the agriculture sector happened as the number of small farmers and fishers supported by the bank reached about 2.4 billion in the first nine months of the year.

This is already above Landbank’s full year target of two million, and more than double the 1.03 million cumulative number of small farmers and fishers supported in 2019.

“Three months before the end of 2020, Landbank already surpassed its year-end target of assisting two million small farmers and fishers nationwide. This accomplishment attests to our continuing commitment that Landbank, together with the Department of Agriculture (DA) and the Department of Agrarian Reform (DAR), remains steadfast in its support to the agriculture sector,” Borromeo said.

Borromeo said about 68 percent or 1.63 million of the total were provided assistance through Landbank’s regular loan offerings and lending programs jointly implemented with the DA and DAR.

A total of 716,897 small farmers were also assisted through the Rice Farmers Financial Assistance (RFFA) and Financial Subsidy to Rice Farmers (FSFR) programs of the DA.

The remaining 48,760 were supported through the Financial Literacy Training program of the Landbank Countryside Development Foundation, Inc. conducted in unbanked municipalities nationwide.

Last year, Landbank committed to intensify its support to the agriculture sector in compliance with President Duterte’s orders.

Borromeo said the bank was targeting to increase its lending assistance to the sector to P350 billion by 2022.

The bank is also aiming to multiply the number of farmers assisted to 2.5 million by 2021, and three million by 2022.