MANILA, Philippines — State-run Land Bank of the Philippines has released P261.7 billion worth of loans to the agriculture sector last year, up 5.5 percent from P247.9 billion a year earlier.
The bank’s outstanding loans to the agriculture sector likewise sustained their upward trajectory with an average growth rate of 10.4 percent.
“Landbank continues to service the growth requirements of all players in the agribusiness value chain, making it the biggest lender to the agriculture sector. We remain committed to delivering timely and accessible credit to boost economic activities in the countryside and the country’s overall food production,” Landbank president and CEO Cecilia Borromeo said.
Of the total agri loans, P46.6 billion went to small farmers and fishers, including those which were channeled through cooperatives, farmers’ associations, rural financial institutions, and other conduits.
Meanwhile, a total of P166.8 billion supported small, medium, and large agribusiness enterprises, while P48.3 billion backed the agri-aqua-related projects of local government units (LGUs) and government-owned and controlled corporations (GOCCs).
To support economic activities, the state-run bank issued P66.5-billion in financing for livestock and crop production, while P107.4 billion was channeled to agri-processing and trading.
The remaining P87.8 billion was used to finance other support services, including the construction and improvement of farm-to-market roads, public markets, irrigation systems, and cold storages, among others.
Landbank said its intensified support to the agriculture sector has translated to 3.5 million farmers and fishers assisted nationwide.
Of the total beneficiaries, more than 766,000 or 22 percent came from the 20 poorest provinces in the country, further advancing its efforts to promote inclusive and sustainable development, the bank said.
The top provinces with the highest number of beneficiaries assisted by the bank are Nueva Ecija, Maguindanao, Bohol, Leyte, Pangasinan, Cotabato, Isabela, Cagayan, South Cotabato and Ilocos Sur.
For this year, Landbank is targeting to increase the number of small farmers and fishers cumulatively assisted to 3.6 million, among other key players in the agri-business value chain.
It is also partnering with the Department of Agriculture (DA) and the Department of Agrarian Reform (DAR) to reach and serve more farmers and fishers.
As of end-2022, the bank’s cumulative loan releases under the programs jointly implemented with DA reached P15.3 billion to support over 252,000 borrowers.
It also released P751.7 million to 229 agrarian reform beneficiaries’ organizations (ARBOs) under the programs it jointly implements with DAR.
Landbank is likewise working with LGUs nationwide for the construction and rehabilitation of infrastructure projects crucial to creating an efficient agriculture value chain.
These include financing for the construction of 953.7 kilometers of farm-to-market roads, 4.5 kilometers of bridges, 50 public markets, and 14 irrigation systems, among others, in 2022 alone.