Landbank lends P2 billion to Isabela for palay buying

MANILA, Philippines — Government-owned Land Bank of the Philippines is allocating P2 billion for Isabela to directly buy palay (unhusked rice) from farmers as part of efforts to address declining farmgate prices due to the opening of the market to imports.

A P2-billion loan agreement was recently signed between Landbank and the provincial government of Isabela for permanent working capital and hauling truck acquisition under the Palay ng Lalawigan program.

The program seeks to help provincial, city and municipal governments of rice-producing provinces procure palay produced by local farmers.

It also aims to supplement the procurement activities that will be undertaken by the National Food Authority.

Landbank had initially earmarked P10 billion to fund the program so that eligible local government units may avail of working capital loans for the procurement of palay at two percent per annum.

It shall also extend term loans for the acquisition of farm machineries and equipment and post-harvest facilities and other rice-related projects at considerable terms.

Meanwhile, 4,474 palay farmers, out of 8,500 beneficiaries in Isabela, received a loan assistance of P15,000 each under the Expanded Survival and Recovery Assistance Program for Rice Farmers (SURE Aid).

“Landbank remains steadfast in fulfilling its mandate to our farmers. Together with the DA, we are committed to provide as much financial support as we can to ease the challenges our farmers are experiencing,” Landbank executive vice president Julio Climaco said.

The SURE Aid Program is the government’s initial relief response to rice farmers who are tilling one hectare of land and below and are affected by the drop in the farmgate price of palay this year.

From the initial allocation of P1.5 billion, the program’s fund has now increased to P2.5 billion.  It will be given as loan assistance to rice farmers nationwide either directly or through DA-accredited service conduits.

Landbank distributed pre-loaded Landbank SURE Aid cash cards containing the P15,000 loan assistance to all qualified farmers. The one-time, zero-interest, no collateral loan is payable up to eight years.