Landbank releases P237 billion loans to agriculture sector

MANILA, Philippines — The Land Bank of the Philippines released P236.8 billion worth of loans to the agriculture sector as of end-March.

This was three percent higher than the P229.7 billion loans disbursed to the sector in the first quarter of last year.

Landbank said the loans were used to finance various economic activities of small farmers and fishers to large agribusiness enterprises.

It also covered local government units (LGUs) and government-owned and controlled corporations (GOCCs) for agri-aqua related projects and construction of needed infrastructure such as public markets, cold storages, irrigation systems, farm-to-market roads, warehouses and slaughterhouses.

Of the total amount, loan to small farmers and fishers amounted to P35 billion, which were channeled through cooperatives and farmers’ associations, rural financial institutions, and other partner conduits of Landbank.

“Landbank is committed in delivering timely and responsive support to boost their production and income,” bank president and CEO Cecilia Borromeo said.

The bank also released P146.62 billion in financing for small, medium, and large agribusiness enterprises, P55.19 billion to support LGUs and GOCCs, and P99.64 billion to back the construction and improvement of essential infrastructure.

In terms of agricultural activities, P56.39 billion of the loans financed crops, livestock, and fisheries, while P80.83 billion was channeled to agri-processing and trading.

Landbank continues to implement regular loan offerings alongside lending programs in partnership with the Department of Agriculture and the Department of Agrarian Reform (DAR) as part of its intensified support to the agriculture sector.

As of end-March, the bank released a total of P12.51 billion under the programs administered for DA, which include the Agricultural Competitiveness Enhancement Fund (ACEF), the Socialized Credit Program under the Sugarcane Industry Development Act (SCP-SIDA), the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF), the Survival and Recovery Assistance Program for Rice Farmers (SURE Aid), and SURE COVID-19.