Landbank agriculture lending hits P230 billion

MANILA, Philippines — Government-owned Land Bank of the Philippines lent some P230 billion to the agriculture sector as of end October.

Landbank’s lending to the sector is nearing its overall agri loans last year of P236.31 billion, which already accounts for 94 percent of its 2020 target of P245 billion.

Of these loans, P146 billion went to small, medium and large agribusinesses while the remaining P84 billion went to small farmers, fisherfolk and the agri-aqua related projects of local government units and government-owned and controlled corporations.

Small farmers and fishers borrowed a total of P1.36 billion through direct lending, while loans to conduits such as cooperatives and farmers’ associations, rural financial institutions and other lending mechanisms amounted to P34.3 billion.

It has also provided P8.31 billion in loans through programs it has been administering for the Department of Agriculture including the Agricultural Competitiveness Enhancement Fund, Sugarcane Industry Development Act, Rice Competitiveness Enhancement Fund, and the Survival and Recovery Assistance for rice farmers.

For programs it has been administering for the Department of Agrarian Reform, Landbank provided P65 million.

As of end-October, Landbank assisted 2.5 million small farmers and fishers nationwide, representing a 125 percent accomplishment rate over the two million cumulative target for the year.

Of this number, 716,931 small farmers were assisted through the Rice Farmers Financial Assistance and Financial Subsidy to Rice Farmers programs of the DA.

In terms of economic activity, the support to the agriculture sector through loans for the construction of irrigation systems and post-harvest facilities accounted for P99.48 billion or 43 percent of the P230.23 billion.

Others were extended to finance agri-processing and trading activities at P75 billion, livestock at P36 billion, crops at P18 billion and fisheries at P1.68 billion.

Landbank is a government financial institution with the social mandate of promoting countryside development, servicing the financial needs of small farmers and fishers, micro, small and medium enterprises, countryside financial institutions, LGUs and government institutions.