State-run Land Bank of the Philippines said Tuesday it poured significant financial support to the agriculture sector, with outstanding loans reaching P261.7 billion in 2022, up 5.5 percent from P247.9 billion in 2021.
LandBank’s outstanding loans to the agriculture sector also went up by 10.4 percent from 2012 to 2022.
“LandBank continues to service the growth requirements of all players in the agribusiness value chain, making it the biggest lender to the agriculture sector. We remain committed to delivering timely and accessible credit to boost economic activities in the countryside and the country’s overall food production,” said LandBank president and chief executive Cecilia Cayosa Borromeo.
The bank said of the total P261.7 billion agri loans, P46.6 billion directly benefited small farmers and fishers, including those which were channeled through cooperatives, farmers’ associations, rural financial institutions and other conduits.
Meanwhile, a total of P166.8 billion supported small, medium and large agribusiness enterprises, while P48.3 billion backed the agri-aqua-related projects of local government units and government-owned and controlled corporations.
It said that in terms of economic activities, financing for livestock and crop production accounted for P66.5 billion of the total agri loans, while P107.4 billion was channeled to agri-processing and trading. The remaining P87.8 billion was used to finance other support services, including the construction and improvement of farm-to-market roads, public markets, irrigation systems, cold storages, among others.
LandBank’s intensified support to the agriculture sector translated into 3.5 million farmers and fishers assisted nationwide. More than 766,000 or 22 percent of these came from the 20 poorest provinces in the country, further advancing its efforts to promote inclusive and sustainable development.
Meanwhile, the top provinces with the highest number of beneficiaries assisted by LanadBank are Nueva Ecija, Maguindanao, Bohol, Leyte, Pangasinan, Cotabato, Isabela, Cagayan, South Cotabato and Ilocos Sur.
The bank said it aimed to increase the number of small farmers and fishers assisted to 3.6 million in 2023.
LandBank is also teaming up with the Department of Agriculture and the Department of Agrarian Reform to reach and serve more farmers and fishers.
It said that as of end-December 2022, the bank’s cumulative loan releases under the programs jointly implemented with DA reached P15.3 billion to support over 252,000 borrowers. The bank also released P751.7 million to 229 agrarian reform beneficiaries’ organizations under the programs it jointly implements with DAR.
LandBank said it was also working with LGUs nationwide for the construction and rehabilitation of infrastructure projects crucial to creating an efficient agriculture value chain.
These included financing for the construction of 953.7 kilometers of farm-to-market roads, 4.5 kilometers of bridges, 50 public markets, 14 irrigation systems, among others, from January to December 2022.