Loans the Land Bank of the Philippines extended to agriculture in the first six months total P713.8 billion, representing a 177 percent increase from last year’s P257.7 billion.
The state-owned lender said this was 69 percent of Landbank’s total loan portfolio of P1.04 trillion, nearly three times the 25 percent requirement for local banks to allocate financing for agriculture, fisheries and rural development (AFRD).
“Landbank remains steadfast in fulfilling its primary development mandate to advance the country’s agricultural sector. With a holistic approach covering all players in the value chain, we will continue to extend accessible and responsive financing to ramp-up agriculture modernization and productivity, paving the way for more resilient local communities,” said Lynette Ortiz, Landbank president and chief executive officer.
Landbank said a significant portion of AFRD loans totaling P244.1 billion was used to ramp up public rural infrastructure development covering highways, streets, bridges, transport systems, irrigation, public markets, slaughterhouses, warehouses, solid waste management, flood control, drainage and other essential infrastructure and development projects.
A total P167 billion has been allotted for sustainable projects providing lasting benefit for both clients and society while reducing pressures on the environment. This also covers green finance that fund climate change mitigation and adaptation projects.
Landbank said P107.8 billion is dedicated to agriculture and fisheries production that includes funds for the processing of fisheries, agri-based products and farm inputs.
P70.4 billion has been set aside for the digitalization and automation of farming, fishery and agri-business activities and processes, including related financial and management information systems while another P78.5 million has been allotted for agri-tourism projects to attract visitors and tourists to farm areas for production, educational and recreational purposes.
The rest of Landbank’s AFRD financing supports farm and fishery entrepreneurial activities; agricultural mechanization; agricultural and fishery commodities; essential facilities, equipment and machineries; capacity-building activities; and projects that promote the health and wellness of farmers, fishers and Agrarian Reform Beneficiaries, including members of their households.
