Landbank releases P4.7-B loans to agri sector

MANILA, Philippines - State-run Land Bank of the Philippines has loaned out an additional P4.7 billion from January to August this year to support the continuing growth in the agricultural sector, a top bank official said.

Landbank president and CEO Gilda Pico said releasing more loans to the agricultural sector is consistent with their thrust towards food sufficiency and increased agricultural productivity.

Pico said with these new loans, the total loan releases since the program started in October 2010 amounted to P14.5 billion, benefiting 152 anchor firms and 410 cooperatives, farmers’ organizations and NGO producers.

These include P4.6 billion in loans to beneficiary projects, firms, cooperatives and producers in Northern and Central Luzon; P3.5 billion in Visayas; P3.4 billion in Mindanao; and P3.1 billion in Southern Luzon

 “We, at Landbank, are pleased that the Food Supply Chain Program is further gaining momentum as more farmers and fisherfolk coops and organizations, SMEs, and NGO producers stand to benefit from this program,” Pico said.

“We are committed to seeing this program to fruition as we endeavor to provide better opportunities and improve the lives of our priority sectors.”

The Food Supply Chain Program provides financial assistance to key players in the food system such as agricultural producers, service providers, processors and various market players.

Pico said the program also forms market linkages between agricultural producers and processors.

The program, she said, likewise offers capacity building support to strengthen farmers’ organizations and enable them to meet product requirements of anchor firms.

She explained that anchors firms are, in turn, expected to buy the produce of the participating cooperatives and organizations, and provide technical assistance to improve productivity and product quality.

Among the projects now being implemented are hog fattening; oil palm production and processing; fruits and vegetable production and processing; rice and corn production, processing and trading; cardava banana production and processing; fish production and processing; onion production, cold storage and marketing; and sugarcane production and milling.