The Land Bank of the Philippines (LANDBANK) continues to intensify its support to advance growth in the countryside, with outstanding loans to the entire agricultural value chain surging to P755.1 billion as of end-December 2023.
The Bank expanded its loans to agriculture and rural development by 23% from P614.8 billion in the third quarter, driven by strategic financing for agriculture and fisheries production, 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.”
LANDBANK’s investments in promoting countryside development of 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. Through accessible financing and support interventions, we are empowering communities and enriching lives, while boosting the National Government’s inclusive and sustainable development agenda,” said LANDBANK President and CEO Lynette V. Ortiz.
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.