State-run Land Bank of the Philippines (LandBank) said its loans to the agriculture sector in the first quarter grew by 3 percent to P236.8 billion from last year’s P229.7 billion.
The bank said it remains as the top provider of loans to the agriculture sector, allowing industry players to bankroll various economic activities.
“The loans were used to finance various economic activities of major players in the industry—from small farmers and fishers to large agribusiness enterprises, as well as local government units [LGUs] and government-owned and -controlled corporations [GOCCs] for agri-aqua related projects and construction of needed infrastructure,” LandBank said in a statement.
LandBank said about P35 billion of the total first quarter loans were channeled through cooperatives and farmers associations, rural financial institutions and other partner conduits with small farmers and fishers ultimately benefiting from them.
“We continue to intensify our support to the agri sector, particularly the farmers and fishers whom we celebrate in this month of May. LandBank is committed to delivering timely and responsive support to boost their production and income,” LandBank President and CEO Cecilia C. Borromeo said.
LandBank said its financing for small, medium, and large agribusiness enterprises reached P146.62 billion of the total loans while P55.19 billion supported LGUs and GOCCs.
The bank added that the remaining P99.64 billion loans were used to finance the construction and improvement of essential infrastructure.
“In terms of economic activities, P56.39 billion of LandBank’s total agri sector loans financed crops, livestock, and fisheries, while P80.83 billion was channeled to agri-processing and trading,” it said.
“As part of its intensified support to the agriculture sector, LandBank continues to implement regular loan offerings alongside lending programs in partnership with the Department of Agriculture [DA] and the Department of Agrarian Reform [DAR],” it added.
LandBank said it has released a total of P12.51 billion under the programs administered for the DA, which included the Agricultural Competitiveness Enhancement Fund, socialized credit program under the Sugarcane Industry Development Act, and the expanded rice credit assistance under the rice competitiveness enhancement fund, among others.
“Meanwhile, the Bank’s cumulative loan releases under DAR’s Credit Assistance Program for Program Beneficiaries Development has reached P700 million,” it said.
“LandBank remains fully committed towards advancing a more vibrant, productive, and resilient agriculture sector in line with serving the nation.”