State-run Land Bank of the Philippines (LANDBANK) continues to pour significant financial support to the agriculture sector, with outstanding loans reaching P261.7 billion as of 31 December 2022 for a 5.5% year-on-year growth from P247.9 billion in 2021.
LANDBANK’s outstanding loans to the agriculture sector likewise sustained its upward trajectory with an average growth rate of 10.4% from 2012 to 2022.
“LANDBANK continues to service the growth requirements of all players in the agribusiness value chain, making it the biggest lender to the agriculture sector. We remain committed to delivering timely and accessible credit to boost economic activities in the countryside and the country’s overall food production,” said LANDBANK President and CEO Cecilia Cayosa Borromeo.
Of the total P261.7 billion agri loans, P46.6 billion directly benefited small farmers and fishers, including those which were channeled through cooperatives, farmers’ associations, rural financial institutions, and other conduits.
Meanwhile, a total of P166.8 billion supported small, medium, and large agribusiness enterprises, while P48.3 billion backed the agri-aqua-related projects of local government units (LGUs) and government-owned and controlled corporations (GOCCs).
In terms of economic activities, financing for livestock and crop production accounted for P66.5 billion of the Bank’s total agri loans, while P107.4 billion was channeled to agri-processing and trading.
The remaining P87.8 billion was used to finance other support services, including the construction and improvement of farm-to-market roads, public markets, irrigation systems, and cold storages, among others.
MORE FARMERS AND FISHERS ASSISTED
LANDBANK’s intensified support to the agriculture sector has translated to 3.5 million farmers and fishers assisted nationwide. More than 766,000 or 22% of these came from the 20 poorest provinces in the country, further advancing its efforts to promote inclusive and sustainable development.
Meanwhile, the top provinces with the highest number of beneficiaries assisted by the Bank are Nueva Ecija, Maguindanao, Bohol, Leyte, Pangasinan, Cotabato, Isabela, Cagayan, South Cotabato, and Ilocos Sur.
For 2023, the Bank is targeting to increase the number of small farmers and fishers cumulatively assisted to 3.6 million, among other key players in the agri-business value chain.
LANDBANK is also partnering with the Department of Agriculture (DA) and the Department of Agrarian Reform (DAR) to reach and serve more farmers and fishers.
As of end-December 2022, the Bank’s cumulative loan releases under the programs jointly implemented with DA have reached P15.3 billion to support over 252,000 borrowers. The Bank also released P751.7 million to 229 agrarian reform beneficiaries’ organizations (ARBOs) under the programs it jointly implements with DAR.
LANDBANK is likewise working with LGUs nationwide for the construction and rehabilitation of infrastructure projects crucial to creating an efficient agriculture value chain.
These include financing for the construction of 953.7 kilometers of farm-to-market roads, 4.5 kilometers of bridges, 50 public markets, and 14 irrigation systems, among others, from January to December 2022 alone.
