THE Land Bank of the Philippines (Land Bank) has extended P236.31 billion in loans to the farm and fisheries sectors in 2019, excedding its target of P231.25 billion for the year.
This figure represents a 102 percent accomplishment rate, the Finance Department said.
Under the Agri-Agra Reform Credit Act, banks are required to set aside at least 15 percent of their total loanable funds for farmers and fisherfolk and another 10 percent for agrarian reform beneficiaries.
Finance Scretary Carlos Dominguez III said Land Bank has been the only lender compliant with this provision of the Agri-Agra Law.
Land Bank’s agricultural loans at P236.31 billion in 2019 is equivalent to 26.50 percent of its total gross loan portfolio of P891.77 billion for the year.
Of the total loans extended to the farm sector in 2019, P1.25 billion worth of credit was channeled directly to farmers, while P43.57 billion of loans were extended to cooperatives and farmers’ associations, rural financial institutions and other conduits.
A total of P137.88 billion in loans went to small, medium and large agribusiness enterprises, while P53.61 billion worth of loans went to agri-aqua related projects of local government units and government-owned and controlled corporations.
In terms of economic activity, Land Bank extended in 2019 a total of P18.73 billion to the crops sub-sector, which consists of palay, sugarcane, banana, pineapple, corn, vegetables, among others.
Livestock accounted for P34.14 billion of the loans to the agriculture sector, while the share of fisheries was P1.92 billion.
Agri-processing and trading got P75.08 billion, while P106.44 billion in loans went to projects supporting the agriculture sector, such as the construction of farm-to-market roads, public markets, warehouses, irrigation systems, cold storages facilities and slaughterhouses. (PR)