NextGen Day

MANILA – The Land Bank of the Philippines (Landbank) proudly announces an impressive milestone, revealing that outstanding loans dedicated to agricultural and rural development have surged to a remarkable PHP 713.8 billion in the first half of this year.

In an official statement released on Wednesday, Landbank revealed that this substantial sum accounts for 69 percent of its total PHP 1.04 trillion loan portfolio during the specified period.

This accomplishment is remarkable not only due to its size but also because it nearly triples the mandated requirement of 25 percent for local banks to allocate financing towards agriculture, fisheries, and rural development (AFRD) as stipulated by the Republic Act No. 11901 or “The Agriculture, Fisheries, and Rural Development Financing Enhancement Act of 2022.”

According to the new law’s provisions, AFRD financing encompasses loans and investments intended to elevate productivity and augment the income of agricultural and fisheries households, thereby fostering increased productivity and competitiveness within the agricultural sector and facilitating the sustainable growth of rural communities.

Landbank’s President and Chief Executive Officer, Lynette Ortiz, expressed its commitment, stating, “Landbank remains unwavering in fulfilling its pivotal development role in advancing the country’s agricultural sector. Employing a comprehensive strategy that engages all stakeholders in the value chain, we will persist in providing accessible and responsive financing to accelerate agricultural modernization and productivity. This approach paves the path for more robust local communities.”

Out of the remarkable PHP 713.8 billion in outstanding loans, Landbank has dedicated PHP 107.8 billion to agriculture and fisheries production, encompassing funding for the processing of fisheries and agriculture-based products and support for essential farm inputs.

To expedite the modernization of agriculture, Landbank has allocated PHP 70.4 billion towards the digitalization and automation of farming, fishery, and agri-business activities and processes, including related financial and management information systems.

Moreover, Landbank has extended PHP 78.5 million to agri-tourism projects to attract visitors and tourists to farm areas for educational, recreational, and production-related purposes.

Landbank has also channeled a substantial PHP 244.1 billion of the AFRD loans into bolstering the development of public rural infrastructure. This encompasses improving highways, streets, bridges, transportation systems, irrigation facilities, public markets, slaughterhouses, warehouses, solid waste management facilities, flood control measures, drainage systems, and other critical infrastructure and development projects.

Simultaneously, a noteworthy PHP 167 billion has been directed towards sustainable projects designed to benefit clients and society. This includes embracing green finance initiatives that fund climate change mitigation and adaptation projects, among other vital objectives.

In addition to these remarkable achievements, Landbank has ensured that the remaining AFRD financing supports diverse endeavors, ranging from farm and fishery entrepreneurial activities, agricultural mechanization, and developing agricultural and fishery commodities to essential facilities, equipment, and machinery. The bank’s commitment also extends to capacity-building activities and projects geared toward improving the health and wellness of farmers, fishers, and Agrarian Reform Beneficiaries (ARBs), including their households.

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