Landbank loans to agri hits p238b
As we aggressively expand direct credit to small farmers and fishers
Loan grants to the agriculture sector from the Land Bank of the Philippines (LandBank) grew 8 percent in just a month to P238.11 billion as of end-July 2019 from P219.63 billion in June.
This was learned from LandBank president Cecilia C. Borromeo who said the bank is currently on course to meet the targets the bank has committed to the President Duterte.
“We are on track to meet the targets and actions plans we committed to the president, as we further intensify LandBank’s support for the agriculture sector. We continue to work very closely with the Departments of Agriculture (DA) and Agrarian Reform (DAR) to ensure effective implementation of joint programs and to ensure that we reach the rightful beneficiaries of credit support,” Borromeo said over the weekend.
She noted that of the overall loan grants, P44.89 billion was given to small farmers and fishers. This figure translates six percent or P2.58 billion increase from P42.31 billion in June.
The number of small farmers and fishers (SFF) assisted by the bank, in turn, grew to 895,441 as of July, representing an additional 5,772 SFF who benefited from the Bank’s financial assistance from 889,669 in June.
Loans to other players in the agri-business value chain, meanwhile, stood at P193.21 billion, P140.1 billion of which was given to small, medium, and large agribusiness enterprises, while P53.10 billion financed agri-aqua related projects of local government units and government-owned and –controlled corporations.
During the reference month, Central Luzon received the highest outstanding loan with P31.23 billion, Calabarzon with P21.91 billion and Cagayan Valley with P17.51 billion.
“As we aggressively expand direct credit to small farmers and fishers, we continue to provide credit support to various players across the entire agricultural value chain — from crop or livestock production, fisheries, to agri-processing and trading, including various support services and infrastructure projects,” Borromeo said.
“This allows us to further widen LandBank’s impact on the agriculture sector.”
By agricultural activity, crop production loans accounted for P18.85 billion, P7.95 billion or 42 percent of which went to palay production.
Meanwhile, loans for agri-processing and trading stood at P109.31 billion, which includes processing and trading of rice, corn and sugarcane.
Loans in support of agriculture, which include public markets, farm-to-market roads, warehouses, cold storages, irrigation systems, slaughterhouses, fish ports and agri-tourism projects, reached P77.66 billion as of end-July.