Landbank lends P40 B to agri

Government-run Land Bank of the Philippines extended P40 billion in loans to the agriculture sector for the first half as it targets to reach more farmers and fisherfolks nationwide.

Landbank’s outstanding loans to the sector reached P39.5 billion as of end-June while loan releases were placed at P26.8 billion, benefitting 274,255 small farmers and fisherfolks in the country.

For one, its Sikat Saka program has released P957.4 million in loans while cumulative loan releases reached P7.6 billion, benefiting a total of 19,615 farmer-borrowers.

Sikat Saka provides direct credit to small palay and corn farmers and offers integrated support services to the farmerbeneficiaries in terms of free irrigation services, market support, and crop insurance subsidy, which improves the viability of palay and corn projects.

The Landbank and Department of Agriculture joint program also train farmers on credit discipline and financial management to teach them how to save, pay loans on time, and better manage their finances.

Landbank courses its credit support to the sector through conduits such as farmers and fishers cooperatives, countryside financial institutions, and irrigators’ associations.

However, in line with its commitment to reach more farmers and fishers, it has direct lending programs which it continuously strengthens to serve those who are not members of accredited cooperatives and organizations and unable to avail of loans from formal lending institutions on their own.

Landbank said it continues to beef up retail lending programs and designing new ones to provide greater financial and technical support to more farmers and fishers across the country.

Landbank remains the biggest credit provider to small farmers and fishers and local government units, and the biggest lender to micro-enterprises and SMEs among government financial institutions.