Agriculture plays a key role in the Philippine economy. It contributes an average of 20 percent to the country’s Gross Domestic Product (GDP) and now also involves about 40 per cent of Filipino workers.
The sector also impacts society in many ways, including, supporting livelihoods through food, habitat, and jobs, as well as in providing raw materials for food and building strong economies through trade.
Filipino women working in rice fields (IMAGE CREDIT: https://www.da.gov.ph/)
The Land Bank of the Philippines (LANDBANK) knows this only too well, that’s why it has continued to intensify its support to this sector in an effort to help advance growth in the countryside.
As of end of December 2023, the bank has already provided outstanding loans to the entire agricultural value chain in the country amounting to P755.1 billion.
The bank has also expanded its loans to agriculture and rural development by 23% from P614.8 billion in the third quarter of 2023, driven by strategic financing for agriculture and fisheries production, as well as sustainable projects, and public rural infrastructure under Republic Act No. 11901, otherwise known as “The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022.”
As of this writing, LANDBANK’s investments in promoting countryside development worth P755.1 billion represents 51% of the bank’s total loan portfolio.
“As LANDBANK’s role in nation-building continues to expand, our commitment to advancing countryside development has remained steadfast,” said Lynette V. Ortiz, President and CEO of LANDBANK.
“Through accessible financing and support interventions, we are empowering communities and enriching lives, while boosting the national government’s inclusive and sustainable development agenda,” she further stated.
A substantial portion of LANDBANK’s P255.2 billion financing for agriculture, fisheries and rural development (AFRD) backed rural infrastructure projects, such as public markets, highways, and transport systems.
Another P186.3 billion supported sustainable projects designed to mitigate climate change and promote responsible resource management.
In support of agriculture and fisheries production, LANDBANK provided P118.1 billion for the processing of fisheries and agri-based products, and farm inputs.
Efforts toward modernizing farming practices and business processes were dedicated with a P70 billion boost. Off-farm and fishery entrepreneurship also received P61.6 billion, while projects promoting the health and wellness of agri players and beneficiaries were allocated P43.4 billion.
The rest of LANDBANK’s AFRD financing covers various aspects of the agri value chain, including marketing, processing, distribution, shipping and logistics, storage of agricultural and fishery commodities, construction, acquisition and repair of facilities, agri-tourism, and agricultural mechanization, among others.
LANDBANK is projecting its AFRD loans to reach P825 billion by the end of 2024, driven by the growing requirements for public rural infrastructure and sustainable green projects, in continued support of the Bank’s mandated and other priority sectors.