LandBank assures enough funding for coconut, coffee industries

THERE is sufficient financing support to sustain businesses in the coconut and coffee industries, the Land Bank of the Philippines (LandBank) said on Monday.

During a webinar, LandBank President and Chief Executive Officer Cecilia Borromeo assured the state-owned lender is ready to support coconut and coffee stakeholders through its existing lending programs with low-interest rates.

LandBank — under its Coconut Production and Processing Financing (Coco-Financing) Program — is extending credit assistance to coconut farmers and other industry stakeholders engaged in the production and processing of coconutbased 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 initiative also supports projects that involve the processing and marketing of high-value commodities.

Both Coco-Financing Program and Sulong Saka Program are open to individual small farm holders, small and medium enterprises, cooperatives and farmers’ association, large agribusiness enterprises/ corporations, local government units, nongovernment organizations and countryside financial institutions.

Eligible borrowers may apply for a loan under these programs with an affordable interest based on prevailing market benchmark rate.

For smallholder farmers, an interest rate of 5 percent per annum is applied to fund coconut and coffee production, including new plantation, replanting, rejuvenation and rehabilitation; establishment of nursery gardens; post-harvest activities such as fermentation, drying, roasting, grinding/ packaging and storage; processing/milling; and manufacturing and trading.

Production loans under the abovementioned programs are payable based on crop cycle/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/refurbished machines.

For permanent working capital and working capital, tenor of up to three years and one year, respectively, is provided.

Borromeo also expressed the staterun lender’s support for the establishment of coconut-based farming systems, and the adoption of coconut- coffee intercropping to help coconut farmers become more profitable.

National scientist Emil Javier explained that coconut-based farming system 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, Javier, also the president of Coalition for Agriculture Modernization in the Philippines Inc., said intercropping of coffee with coconut trees will help farmers generate more income.

“We fully agree that a coconut-based farming system will increase productivity and farmers’ income, and promote value-adding operation. We also support promoting the adoption of coconut- coffee intercrop. Aside from the technical requirement for shade to young coffee plants, this production model will lead to increased land productivity and farmers’ income,” said Borromeo during the five- day webinar series titled “CocoKwentuhan sa Negosyo.”