LANDBANK..

These big agri companies described as “Corporatives” will borrow all production cost financing requirements from LANDBANK. “The main objective is to raise the income of each farmer family way above the P10,000 Poverty Line Threshold per month,” explained Buenaventura.

Direct Marketing by Supervised Credit Technicians

To ensure that more farmers can gain access to financing, LANDBANK Lending Centers nationwide will provide loans to target borrowers through direct marketing. A master list of small farmers will be generated by LANDBANK in consultation with local representatives of DAR and DA. Trained ASLP Supervised Credit Technicians from the Bank’s Lending Centers will market directly to all farmers in their assigned master list.

Agri-Agra Law P460 Billion Funding for the Program

LANDBANK allocated P10 Billion from its own funds for the program which may be increased depending on the credit requirements of the borrowers.

LANDBANK can source additional funding by issuing Small Farmers Corporative Bonds (against loans extended to Agri Corporative Corporations) which will be auctioned to other banks as alternative compliance to Agri-Agra Law. Latest data from the BSP show that non-compliance of the total banking system to the said law amounted to P459.84 billion as of end-2017.

“With our issuance of LANDBANK Small Farmers Corporative Bonds, we will not only raise funds for our lending to farmers but it will also provide an added instrument for banks to comply with the requirement of the Agri-Agra Law especially on the 10% of loan portfolio requirement for agrarian reform farmers,” according to Buenaventura.