The Land Bank of the Philippines (LANDBANK) reported a 14.8 percent growth in loans to the agriculture sector in the first quarter of the year to P271.8 billion versus only P236.8 billion last year.
Of the loans, P42.3 billion directly benefitted small farmers and fishers, including those channeled through cooperatives and farmers’ associations, rural financial institutions and other conduits.
“LANDBANK continues to provide accessible financing for small farmers and fishers, as well as the whole agri-value chain. We are fully committed to support the national government’s efforts to ensure food security towards advancing growth that is sustainable and inclusive,” said Cecilia Borromeo, LANDBANK president and CEO, said.
The state-owned lender also extended P181.2 billion to finance the funding requirements of small, medium and large agribusinesses. The remaining P48.3 billion went to the agri- and aqua- related projects of local government units and government-owned and controlled corporations.
Specifically, P64.5 billion of the agri loans boosted livestock and crop production while P120 billion financed agri-processing and trading programs.
Also, P87.3 billion supported the construction and improvement of essential agricultural infrastructures such as public markets, farm-to-market roads, warehouses, cold storage, and irrigation systems, among others.
To support palay production, lending to rice farmers and other industry stakeholders were sustained, with outstanding loans to the rice sector reaching P9.7 billion in 1Q this year to fund requirements for palay production and the processing of farm inputs, machinery, equipment and facilities, among others.
