STATE-RUN Land Bank of the Philippines (LandBank) has released P2.5 billion in loans to rice farmers and cooperatives as part of its effort to boost domestic production of the staple.
In a statement on Tuesday, LandBank President and Chief Executive Officer Lynette Ortiz said that they remain aggressive in extending financial support to rice farmers and cooperatives amid the impact of the El Niño weather phenomenon.
Under the Expanded Rice Credit Assistance of the Rice Competitiveness Enhancement Fund (ERCA-RCEF), the loans from LandBank benefitted over 15,400 individual rice farmers and 270 cooperatives with more than 21,300 member-beneficiaries as of April 30, 2024.
Ortiz said that LandBank's support to the agriculture sector plays an important role in ensuring the country's food security.
"We are committed to providing continued financial assistance to our rice farmers to help them sustain their operations and improve productivity, especially in the face of challenges including the El Niño phenomenon," she said.
Under the ERCA-RCEF program, implemented in partnership with the Department of Agriculture, P500 million is allocated annually from 2019 to 2023. LandBank, meanwhile, ensures that loans are accessible to farmers and cooperatives through affordable interest rates and lesser documentary requirements.
LandBank said that 98 percent of their direct borrowers are individual rice farmers. Also, individuals and groups who acquired loans use them to support palay (unmilled rice) production, milling and trading, re-lending, and purchase of farm machinery.
Most of the farmers who availed the loans were from the rice-producing provinces of Cagayan Valley, with 4,945 borrowers from Cagayan, Nueva Vizcaya, and Quirino. Loans released for this region alone totaled P612.4 million, according to LandBank.
Central Luzon followed with 2,243 borrowers with a corresponding amount of P840.3 million in total loans.
The state-run bank also extended loans to rice farmers in the provinces of Capiz, Leyte, Agusan del Sur, Bukidnon, North Cotabato, and Zamboanga del Sur.
LandBank has a presence in all 82 provinces in the Philippines and provides accessible financing to drive the agriculture sector's productivity and competitiveness.
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