STATE-run Land Bank of the Philippines (LandBank) announced it opened a credit facility to coconut farmers “to increase production and income especially in coconut-producing communities nationwide.”
Under the LandBank “Coconut Farmers and Industry Development (CFID) Lending” program, eligible coconut farmers, cooperatives and associations can access financing for various projects, including the establishment of intercrops and poultry or livestock integration in coconut farms, the state-run lender said in a statement.
“Individual coconut farmers can use the loan to increase production and working capital, to acquire machines and equipment, and establish necessary facilities,” it added. “Coconut cooperatives and associations can also utilize the financing for relending and rediscounting to their members.”
The LandBank said its CFID lending program supports the Coconut Farmers and Industry Development Plan (CFIDP) spearheaded by the Department of Agriculture (DA) and the Philippine Coconut Authority (PCA), which outlines the policies and directions to rehabilitate and modernize the Philippine coconut industry.
“The CFID Lending Program forms part of the National Government’s whole-of-nation approach towards providing meaningful investments to the coconut industry. Landbank remains committed to providing accessible and affordable credit to coconut farmers nationwide to help improve their livelihood,” LandBank President and CEO Cecilia C. Borromeo was quoted in the statement as saying.
Under the CFID Lending Program, LandBank will provide short-term and long-term loans of at least P1 million, with a fixed affordable interest rate of 2 percent per annum.
The loan program has a total P333.3 million fund composed of P83.3 million (25 percent) from Landbank funds and P250 million (75 percent) from the Credit Component Allocation under the Coconut Farmers Industry Trust Fund (CFITF) Act, which was signed by former President Rodrigo R. Duterte in February 2021.
The LandBank said its CFID lending program will run until 2071 to accommodate as many players from the coconut industry as possible.