Loans to agri sector totaled P257.7B as of end-June — Landbank

The Land Bank of the Philippines on Tuesday said its loans to the agriculture sector reached P257.7 billion as of the first half of 2022.

In a statement, Lanbank said loans to the agriculture sector released during the period grew 15.5% year-on-year, solidifying its position as the biggest lender to the agriculture sector in the country.

"Landbank stands ready to extend accessible credit to all agri players to boost the country’s food production and supply. We will continue ramping up our lending activities in full support of the new administration’s agricultural modernization agenda," said Landbank president and CEO Cecilia Borromeo.

Of the P257.7 billion total outstanding loans, Landbank said P37.5 billion went to small farmers and fishers, including those which were channeled through cooperatives and farmers’ associations, rural financial institutions, and other conduits.

A total of P163.1 billion was used to support small, medium, and large agribusiness enterprises, while the remaining P57 billion went to agri-aqua related projects of local government units (LGUs) and government-owned and controlled corporations (GOCCs).

The loans were used to finance various economic activities, including P56.7 billion for livestock, crops, and fisheries production, and P122.2 billion for agri-processing and trading of rice, corn, and sugarcane, among others. 

A total of P78.8 billion was utilized for the construction and improvement of essential agricultural infrastructure such as public markets, farm-to-market roads, warehouses, cold storages, irrigation systems, and slaughterhouses.

In the first six months of 2022, Landbank said it also assisted in the construction and improvement of 138 kilometers of farm-to-market roads—which is one of the priorities in President Ferdinand Marcos Jr.’s development plan for the agriculture sector.

In support of the President’s long-term goal to modernize agricultural production, the state-owned lender said it has been offering the Agri-Mechanization Financing Program designed to promote mechanization of production and post-production processes, from planting to harvesting and processing, thereby increasing efficiency, reducing post-harvest losses and lowering production costs.

Landbank said its Agri-Mechanization Financing Program has supported 53 micro and small enterprises and cooperatives with cumulative loan releases totaling P681.5 million as of end-June 2022.

The bank, likewise, said that it has cumulatively assisted more than 3.3 million farmers and fishers nationwide, of which 566,462 or 17% came from the 20 poorest provinces in the country.

The top provinces with the highest number of beneficiaries are Nueva Ecija, Maguindanao, Bohol, Pangasinan, Cotabato, Isabela, Cagayan, Leyte, Ilocos Sur, and South Cotabato.

The bank said that its close collaboration with the Department of Agriculture (DA) and the Department of Agrarian Reform (DAR) has also allowed it to reach and serve more farmers and fishers.

Landbank said it has extended a total of P13.3 billion to 247,591 borrowers under the programs it is administering for DA, and another P719.4 million to more than 200 agrarian reform beneficiary (ARB) organizations, benefiting over 11,000 ARBs and small farm holders under DAR’s programs. —VBL, GMA News