Landbank launches program for greenhouse farm financing

MANILA, Philippines — Government-run Land Bank of the Philippines has recently launched a new credit program, which seeks to support modern and sustainable farming in the country.

Dubbed as the “Financing Program for Greenhouse Farming System,” Landbank’s new program will provide financial assistance to farmers, cooperatives and agri-entrepreneurs who intend to shift to modern farming by adopting greenhouse farming technology.

“We hope to enhance the viability, sustainability and competitiveness of high value crop production of our farmers by adopting greenhouse farming technology. We intend to help lift the farmers from their current situation of subsistence farming to growing crops in a scientifically and financially efficient way,” Landbank president and chief executive officer Cecilia Borromeo said in a statement.

Landbank said it also decided to launch the program amid concerns on climate change and growing food demand due.

Greenhouse technology allows farmers to grow off-season crops all year in a climate-controlled environment. This technology also helps protect crops from extreme weather conditions, such as floods, droughts, typhoons and rising temperatures brought about climate change.

According to Landbank, eligible projects covered by the new loan program include the construction or improvement of greenhouses, and the production of high-value crops, such as lettuce, tomato, and strawberries, among others.

Processing and trading of greenhouse produce may also be financed under the program.

Landbank is the biggest lender to the agriculture sector, with gross loans amounting to P227.55 billion as of end-September.

Of this amount, P41.25 billion went to small farmers (including agrarian reform beneficiaries), fishers and their associations, while P186.29 billion in loans were extended to other players in the agri-business value chain.

The bank is also compliant with the Agri-Agra Credit Law, which mandates banks to allocate 10 percent of their total loanable funds to agrarian reform beneficiaries and 15 percent to borrowers for other agricultural purposes.

Including loans to other sectors, LandBank’s gross loan portfolio reached P869.31 billion by the end of September, higher than the P838.75 billion recorded a year ago.

Intensified lending activities led to the 23 percent growth in the bank’s net income, which amounted to P13.97 billion during the nine month period of the year as compared to P11.36 percent a year ago.

Earlier, Borromeo said Landbank’s agriculture loan portfolio is expected to grow to P231.25 billion by the end of the year from P222.06 billion in 2018.

She said the bank also intends to increase its loans for agriculture to P350 billion by 2022, in line with the orders of President Rodrigo Duterte to intensify its support to the sector.

It also aims to increase the number of farmers assisted from 889,669 as of June 2019 to three million by 2022.