LANDBANK loans for agri sector on steady growth, exceeds P219B as of June 2019

Wednesday, August 7, 2019

The Land Bank of the Philippines remained aggressive in supporting the agriculture sector over the years, with robust growth in loans and focused implementation of lending programs.

The Bank’s loans to agriculture has been on the uptrend in the past 10 years, from P93.3 billion in 2009 to more than double at P219.5 billion as of June 2019.  These include P42.31 billion in loans to small farmers, fishers, and their associations and P177.32 billion to other players in the agri-business value chain.

“LANDBANK is the biggest lender to agriculture especially to small farmers and fishers. We have been steadfast in pursuing our mandate of supporting the agriculture sector through easily accessible financing. We will intensify our support and multiply our effort of lending to more farmers and fishers in order to boost their production and increase their income,” said LANDBANK President and CEO Cecilia C. Borromeo.

The Bank has always been compliant with the Agri-Agra Credit Law which requires banks to allot at least 10% of its total lending portfolio to agrarian reform beneficiaries and 15% to farmers and fishers. The share of the Bank’s agri loans against its total gross loans was at 27.45% as of June 2019.

LANDBANK likewise supports other priority projects of the National Government, with loans amounting to P524.86 billion as of end-June 2019. This helped finance the construction of farm-to-market roads, schools, hospitals, electrification, water systems, socialized housing, and other livelihood projects which benefit farmers and fishers.

“We are aggressively stepping up our efforts to make direct credit accessible to small farmers and fishers. We work closely with the Department of Agriculture and the Department of Agrarian Reform for joint programs, including the identification of farmers not only to ensure that they are officially registered but that they can be reached and offered financing interventions,” Borromeo said.

To complement its direct lending programs, LANDBANK continuously implements existing loan programs that it channels through partners such as cooperatives, irrigators’ associations, and countryside financial institutions.

LANDBANK also provides technical assistance such as financial literacy and institutional development trainings for farmer cooperatives to enhance their credit worthiness.