Landbank: Loans to farmers’ coops, associations reached P20B as of end-August

State-run Land Bank of the Philippines said Thursday it has extended a total of P20.86 billion in outstanding loans to farmers’ cooperatives and associations as of end-August.

The amount covers 1,081 farmers cooperatives and associations.

In a statement, Landbank president and CEO Cecilia Borromeo assured cooperatives of readily available credit facilities with low interest rates to finance recovery projects and initiatives.

Borromeo expressed the lender’s continued commitment to support the role of local coops in getting communities and the economy back on its feet amid the ongoing COVID-19 pandemic.

“As your long-time partner in growth, we in Landbank reaffirm our unwavering commitment and solidarity to the noble objectives of the cooperative sector. We recognize the important role of co-ops in helping revive the local economy, with your presence in communities, especially in the countryside,” she said.

As of August 2020, Landbank’s outstanding loans to the agriculture sector reached P224.66 billion, of which P20.86 billion was extended to farmers’ coops.

The amount includes P428 million in loans provided to cooperatives under the Agricultural Competitiveness Enhancement Fund (ACEF) and the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF) administered with the Department of Agriculture (DA), as well as the Socialized Credit Program under the Sugarcane Industry Development Act (SCP-SIDA) in partnership with the Sugar Regulatory Administration (SRA).

The Landbank-managed ACEF aims to increase productivity of farmers and fishers by providing the necessary credit to farmers and fishers and their cooperatives and associations, and micro and small-scale enterprises, for the acquisition and establishment of production, postharvest, and processing machineries, equipment and facilities, farm inputs and improvement.

A maximum of P5 million can be availed by farmer and fishers cooperatives, associations, and micro and small enterprises, according to the Landbank.

The RCEF is mandated under the Rice Tariffication Law or Republic Act No. 11203 with a total of P10 billion to be allotted annually and will be incorporated under the General Appropriations Act to be used in boosting the agricultural productivity in the country and help the lives of farmers.

Meanwhile SCP-SIDA is funded by  15% or about P300 million of the annual P2-billion fund allocated for the development of the country’s sugar industry.

Alongside extending loans, Landbank said it will also be providing financial literacy trainings to 220 micro and small coops from 92 unbanked municipalities under the Financial Inclusion Through Cooperatives (FIT-Coop).

Together with the Cooperative Development Authority (CDA), the program is designed to help improve the business operations and strengthen the capacity of cooperatives to access formal credit, the lender said. — BM, GMA News