Landbank: Loans to agriculture at P230B in 1st 5 months of 2021

State lender Land Bank of the Philippines said Friday has extended a total of P230.02 billion in loans to the agriculture sector in the first five months of  the present year.

In a statement, the Landbank said the amount benefitted 2.7 million farmers and fisherfolk along with agribusiness enterprises and related projects by local government units (LGUs) and state-run firms.

Citing Landbank president and CEO Cecilia Borromeo’s report to Finance Secretary Carlos Dominguez III, the state lender said the loan amount is P73 million higher than the P229.29 billion level reached as of April 2021 and is already 81.6% of the bank’s 2021 target of P281.75 billion.

Borromeo’s report also showed that from 2,703,249 farmers and fishers assisted by the Landbank as of April, another 31,323 were provided by the state lender in the form of soft loans, subsidies and financial literacy training programs  as of end-May.

“This brings the total number of farmers and fishers assisted by the Landbank as of May 31, 2021 to 2,734.572,” it said.

“Of the loan releases of P230.02 billion, the bank said that close to two-thirds or P145.85 billion went to small, medium and large agribusinesses enterprises, while the remaining amount of P84.17 billion went to small farmers and fisherfolk (P34.79 billion) and the agri-aqua related projects of LGUs and government-owned and controlled corporations or GOCCs (P49.38 billion),” according to Borromeo.

Small farmers and fishers borrowed a total of P1.24 billion through direct lending, and another P33.55 billion through conduits such as cooperatives and farmers’ associations, rural financial institutions  and other credit mechanisms, the bank said.

As of May this year, the Landbank has also provided  P9.42 billion in loans from the P9.83 billion fund for  farmer-friendly initiatives it has  been administering for the Department of Agriculture (DA), such as the those under the Agricultural Competitiveness Enhancement Fund (ACEF), Socialized Credit Program under the Sugarcane Industry Development Act (SIDA), Expanded Rice Credit Assistance (ERCA) under the Rice Competitiveness Enhancement Fund (RCEF) and  Survival and Recovery Assistance (SURE-Aid) for palay farmers.

For programs it has been administering for the Department of Agrarian Reform (DAR), the Landbank said it has provided P63 million in loans to agrarian reform beneficiaries sourced from  the P65 million program fund as of May.

In terms of economic activity, funding support to the agriculture sector in the form of cold storage facilities, irrigation systems, slaughterhouses, farm-to-market roads and other projects received  P90.27 billion, representing the bulk of the P230.02 billion in loans as of end-May, the bank said.

Agri-processing and trading activities received P85.13 billion of the loans, while the livestock subsector got P35.46 billion; crops, P17.16 billion; and fisheries, P2 billion. —LBG, GMA News