Landbank OKs P17.4B loans for high-value crops production

State-run Land Bank of the Philippines said Wednesday it has approved P17.4 billion in loans for the production of high-value crops.

The loans benefitted 1,220 borrowers nationwide, Landbank said in a news release.

The bank said the loans will finance the production of highland and lowland vegetables, fruits, as well as industrial crops including abaca and bamboo.

Spices, legumes, and alternative food staple crops such as soybean and root crops are also covered for financing under the Landbank’s “Sulong Saka Lending Program.”

“Landbank aims to promote the diversification of crop yields of our local farmers alongside ensuring food security. We will continue to support the production of high-value crops in the country through accessible and responsive credit assistance,” said Landbank president and CEO Cecilia Borromeo.

Apart from increasing high-value crops production, the state-run lender said farmers can avail of loans under the program to finance related projects such as the establishment of nursery, and budwood or mother and plant or parent clone gardens, as well as for the establishment of new plantations, and the replanting, rejuvenation and rehabilitation of old trees.

Financial support under the Sulong Saka Program extends up to post-harvest crop activities such as fermentation and drying, including the processing and manufacturing of crops, like roasting, grinding/milling, packaging, and storing, Landbank said.

Trading and export activities may also be financed under the program, it said.

Landbank said individual small farm holders may borrow up to 90% for a production loan, while a maximum of 80% may be borrowed by small and medium enterprises (SMEs), cooperatives, farmers associations and organizations, large agribusiness enterprises and corporations, non-government organizations (NGOs) and countryside financial institutions (CFIs).

The bank said its Sulong Saka Program can also finance up to 80% and 85% of the total project cost for the acquisition of fixed assets and commodity loans, respectively.

Local government units (LGUs) may also avail of financial support under the program, provided that the loan amount will not exceed their net borrowing capacity, as certified by the Bureau of Local Government Finance (BLGF).

Term loans for working capital and permanent working capital are payable up to one year and three years, respectively, while loans for fixed assets and construction of facilities are payable based on cash flow but not more than its economic useful life, it said.

An interest rate of 5% per year shall apply, Landbank said.—AOL, GMA News