Landbank to extend more loans to coco, coffee farmers

MANILA, Philippines — Government-owned Land Bank of the Philippines has committed to strengthen credit support for coconut and coffee farmers in a bid to boost productivity and income.

Landbank has assured stakeholders of the coconut and coffee industries of its available credit facilities designed to help improve their operations and income.

Under the Coconut Production and Processing Financing (Coco-Financing) Program, Landbank is extending credit assistance to coconut farmers and other industry stakeholders engaged in the production and processing of coconut-based products.

It is also providing credit support to stakeholders involved in the production of high-value crops like coffee, as well as abaca, banana, cacao, rubber, and vegetables, through the Sulong Saka Program or High Value Crops Financing Program.

Aside from promoting crop production, the program also supports projects that involve the processing and marketing of high value commodities.

The two credit programs are open to individual small farm holders, small and medium enterprises, cooperatives and farmers’ associations, large agribusiness enterprises, local government units, non-government organizations and countryside financial institutions.

Production loans under the programs are payable based on crop cycle or gestation and payback period of the project.

Meanwhile, tenor for fixed asset acquisition is based on project cash flow, but not more than the economic useful life of fixed assets or remaining useful life for second hand or refurbished machines.

The bank supports the establishment of coconut-based farming systems, and the adoption of coconut-coffee intercropping to help farmers become more profitable.

Coconut-based farming is the practice of growing other high-value crops, such as coffee, cacao, bananas, papaya, pineapple and vegetables, under the coconuts.

Considering the increasing demand for coffee in the country, intercropping of coffee with coconut trees will help farmers generate more income.