LANDBANK has welcomed the recent passage of Republic Act No. 11954, which extends the Rice Competitiveness Enhancement Fund (RCEF) for another seven years.
The RCEF is intended to improve the productivity and competitiveness of local rice farmers and increase their income through the provision of farm machinery and equipment, rice seed development, propagation, and promotion, expanded rice credit assistance, and rice extension services.
This crucial legislation is envisioned to accelerate modernization in the rice sector, strengthen the resilience and productivity of Filipino rice farmers, and ensure national food security.
As a key partner of the Department of Agriculture (DA) in implementing RCEF, LANDBANK plays a pivotal role in providing crucial financial support to rice farmers.
Through the Expanded Rice Credit Assistance under RCEF (ERCA-RCEF), the Bank has extended P2.89 billion in loans to support rice production, post-harvest activities, and the acquisition of farm machinery from 2019 to 2024.
These loans have directly benefited 17,767 individual rice farmers and 270 cooperatives, impacting over 47,100 member-beneficiaries across the country.
“LANDBANK fully supports the RCEF extension,” said LANDBANK President and CEO Lynette V. Ortiz. “This significant step will bolster food security and sustainability, and the bank stands ready to continue its active role in supporting this vital initiative.”
A strong commitment to agriculture
LANDBANK remains steadfast in its commitment to promoting inclusive and sustainable development in the agriculture sector.
As the country’s largest development financial institution, the Bank has extended outstanding loans amounting to P769.68 billion to support agriculture, fisheries, and rural development under Republic Act No. 11901, the Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022.
This significant figure represents 55.5% of the Bank’s total gross loan portfolio, underscoring its commitment to countryside development.
LANDBANK remains a strong ally of the nation’s rice farmers. Through its various programs, the bank has directly assisted 3.93 million small farmers and fishers nationwide, providing them with access to affordable credit and other vital support services.
Streamlining support for sugarcane farmers
LANDBANK has also been actively supporting the sugarcane industry.
Recently, the bank led the signing of the Revised Implementing Rules and Regulations (IRR) of the Socialized Credit Program under the Sugarcane Industry Development Act (SCP-SIDA).
This initiative aims to streamline the program’s processes, making credit more accessible and affordable for Filipino sugarcane farmers.
As of end-November 2024, LANDBANK has approved loans amounting to P1.32 billion under SCP-SIDA, benefiting over 4,000 individual borrowers, including six block farms and four common service centers nationwide.
RCEF: A foundation for a sustainable future
LANDBANK’s continued support for the agriculture sector is crucial for the country’s economic growth and food security. By providing accessible and affordable credit to farmers, the bank empowers them to increase their productivity, improve their livelihoods, and contribute to a more sustainable and prosperous agricultural sector for the Philippines.
The bank has vowed to continue supporting the RCEF as it will help equip Filipino farmers with modern agricultural machinery, leading to substantial improvements in productivity and efficiency.
By investing in these tools, farmers can expect the following benefits:
- Lower production costs: The use of farm machinery can significantly reduce labor costs and increase operational efficiency, resulting in a decrease of two to three pesos per kilogram of rice. This cost reduction enhances the farmers’ profitability and competitiveness in the market.
- Reduced post-harvest losses: With the right machinery, farmers can minimize post-harvest losses, which typically occur due to factors such as improper handling and storage. By reducing these losses from three to five percent, farmers can increase their overall yield and income.
- Improved product quality: Modern farm machinery can help maintain the quality of the harvested rice by minimizing damage to the grains. This results in a higher-quality product that can fetch a premium price in the market.
- Timely harvesting and processing: Farm machinery allows for faster and more efficient harvesting and processing of rice, ensuring that farmers can meet market demands and avoid post-harvest losses due to delays.
- Increased productivity: By mechanizing various farm operations, farmers can cultivate larger areas of land and produce higher yields, leading to increased income and a better standard of living.
In essence, the RCEF’s investment in farm machinery is empowering Filipino farmers to adopt modern agricultural practices, increase their productivity, and improve their overall livelihoods
About LANDBANK
LANDBANK is the largest development financial institution in the Philippines, committed to promoting financial inclusion, digital transformation, and sustainable national development.
With a presence in all 82 provinces across the country, LANDBANK strives to provide accessible and responsive financial solutions to empower Filipinos nationwide.
