State-run Land Bank of the Philippines said it is offering a new affordable credit facility to coconut farmers to help them increase production and income.
Under the LandBank Coconut Farmers and Industry Development lending program, eligible coconut farmers, cooperatives and associations can access financing for various projects, including the establishment of intercrops and poultry or livestock integration in coconut farms.
“The CFID Lending Program forms part of the national government’s whole-of-nation approach towards providing meaningful investments to the coconut industry. LandBank remains committed to providing accessible and affordable credit to coconut farmers nationwide to help improve their livelihood,” said LandBank president and chief executive Cecilia Cayosa Borromeo.
LandBank will provide short-term and long-term loans of at least P1 million, with a fixed affordable interest rate of 2 percent per annum.
LandBank earmarked P333.3-million fund for the program, of which P83.3 million or 25 percent will come from the bank’s revolving funds and P250 million or 75 percent from the Credit Component Allocation under the Coconut Farmers Industry Trust Fund Act signed by former President Rodrigo Duterte in 2021.
Individual coconut farmers can use the loan to increase production and working capital to acquire machines and equipment and establish necessary facilities. Coconut cooperatives and associations can also utilize the financing for relending and rediscounting to their members.
The LandBank CFID lending program supports the Coconut Farmers and Industry Development Plan of the Department of Agriculture and the Philippine Coconut Authority which outlines the policies and directions to rehabilitate and modernize the Philippine coconut industry.