The Land Bank of the Philippines (LandBank) announced it has completed its target of giving financial access to 2 million farmers and fisherfolk ahead of time, the finance department reported on Wednesday.
According to a statement released by the Department of Finance, the LandBank extended a total of P230.2 billion in loans to the agriculture sector as of October this year, benefitting over 2.5 million farmers and fishers.
LandBank’s target was set at 2 million beneficiaries by the end of 2020. Its target loan volume to the sector, meanwhile, was at P245 billion by the end of this year which, as of October, is 94 percent fulfilled by LandBank.
Of the loan releases of P230.23 billion, P145.86 billion went to small, medium and large agribusinesses enterprises, while P35.66 billion went to small individual farmers, fisherfolk. The agri-aqua related projects of local government units (LGUs) and government-owned and controlled corporations, meanwhile, got P48.71 billion.
Of the individual small farmers and fishermen, only P1.36 billion was through direct lending. P34.3 billion were loans to conduits such as cooperatives and farmers’ associations, rural financial institutions and other lending mechanisms.
From 1,300,135 farmers and fishers in April, the state-owned lender almost doubled the number of rural folk it has assisted to 2,502,640 in October.
Broken down, 716,931 small farmers out of the 2.5 million were assisted through the rice farmers’ financial assistance program and the financial subsidy to rice farmers project of the DA.
Misamis Oriental projects
Meanwhile, the LandBank said it is bankrolling two projects of the Municipal Government of Jasaan, Misamis Oriental amounting to a total of P300 million.
Of this amount, P150 million is allotted to finance the upgrade of the municipality’s water system facilities, addressing the declining supply.
The project is seen benefitting over 7,700 households across six barangays with uninterrupted potable water supply.
The loan agreement will also be funding the construction of Level-3 water system to connect secondary pipelines to Level-3 household connections. This is part of the LGU’s potable water supply system project.
The other P150-million term loan is for the construction of a Category-1 sanitary landfill to ensure that the residual and hazardous wastes are properly disposed.
The project includes excavation of two-hectare land, along with the construction of drainage, gas ventilation, leachate, septic, hazardous waste and electrical systems, an administration building and a perimeter fence.
In addition, the Jasaan LGU is eyeing to expand the landfill by 10 more hectares.
LandBank and the LGU has already partnered earlier. In 2007, the state-owned bank extended a P22.7-million loan term for the construction a municipal hall building and a P29.71-million term loan to build a water system.
Hiked funding
Recently, the LandBank confirmed that the funding for its LGU lending program was hiked to P80 million.
It was the second time the state-run bank hiked the fund allocation for the said lending program. In October, LandBank added P10 billion to the program, bringing the total funding at the time to P20 billion.
LandBank introduced the loan program in July, initially with a P10-billion funding, to boost the recovery efforts of the LGUs amid the coronavirus pandemic.
Proceeds of the loans can be used to fund acquisition of agricultural produce and equipment and construction of facilities linking products to market. LGUs could also avail the loans to finance programs and projects for basic and support services, social welfare and healthcare, and other infrastructure activities seen spurring the economic activities.
As of end-November, LandBank approved P52.27-billion worth of loans under this program, benefiting 156 LGUs.