The Landbank of the Philippines (LANDBANK) has outstanding loans of P94.01 billion to support the improvement and construction of farm infrastructure and post-harvest facilities, which make up the bulk of the total P233.6 billion in loans to the agriculture sector as of October 31 this year.
In a report to Finance Secretary Carlos Dominguez III, the LANDBANK said the P233.6 billion in outstanding loans as of end-October is 93 percent of its P251.5 billion target in loans to the agriculture sector in 2021.
LANDBANK has also already assisted 2,987,929 farmers and fishers, representing an increase of 13,125—of which 10,189 availed of regular loans from the Bank—from last month’s figure of 2,974,804.
The Bank said the P5.39 billion net growth in loans as of October was attributed to the increase in loan releases of P4.41 billion to small, medium, and large agribusiness enterprises from last September.
In terms of economic activity, loans supporting agri-related activities such as the improvement and establishment of public markets, farm to market roads, warehouses, cold storages, irrigation systems, fish port, and agri-tourism have picked up with an increase of P5.79 billion as of 31 October 2021, according to the state-run Bank.
Of the P233.6 billion in agriculture loans, close to two-thirds or P150.16 billion supported small, medium and large agribusinesses enterprises, while the remaining amount of P83.44 billion went to small farmers and fishers (P32.92 billion) and the agri-aqua related projects of local government units (LGUs) and government-owned and controlled corporations or GOCCs (P50.52 billion).
Small farmers and fishers borrowed a total of P1.34 billion through direct lending, and another P31.58 billion through conduits such as cooperatives and farmers’ associations, rural financial institutions, and other credit mechanisms.
As of October this year, LANDBANK has also released 100 percent of the P11.04 billion in program funds of farmer-friendly loans 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), Survival and Recovery Assistance (SURE-Aid) for palay farmers, and the Survival and Recovery Assistance COVID-19 (SURE-Aid COVID-19) for farmers and fishers.
For the Credit Assistance Program-Program Beneficiaries Development (CAP-PBD) it has been administering for the Department of Agrarian Reform (DAR), the LANDBANK has also released the full P65 million program fund for loans to agrarian reform beneficiaries (ARBs).
In terms of economic activity, outstanding loans to agri-processing and trading activities reached P84.48 billion of the total loans, while the livestock subsector was supported with P34.95 billion; crops, P17.74 billion; and fisheries, P2.43 billion as of end-October.
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