Amid the devastating impact of El Niño on local harvests, the Land Bank of the Philippines (LANDBANK) has stepped up its financial support to rice farmers.
As of April 30, 2024, total loans released through the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF) reached P2.5 billion.
In partnership with the Department of Agriculture (DA), LANDBANK successfully disbursed the P500-million allocated annual fund under ERCA-RCEF from 2019 to 2023. The bank continues to offer loans to rice farmers and their cooperatives at affordable interest rates with minimal documentary requirements.
“LANDBANK’s support to the agriculture sector is crucial to ensuring food security in the country. 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,” said LANDBANK President and CEO Lynette V. Ortiz.
The P2.5 billion in loans released by LANDBANK under ERCA-RCEF benefited over 15,400 individual rice farmers and 270 cooperatives, involving more than 21,300 member-beneficiaries. These funds supported palay production, milling and trading, re-lending, and acquisition of farm machinery. Notably, 98% of LANDBANK’s direct borrowers are individual rice farmers.
The majority of loan borrowers came from the rice-producing provinces of Region 2, particularly Cagayan, Nueva Vizcaya, and Quirino, with LANDBANK assisting 4,945 borrowers for a total of P612.4 million in loans. Region 3 followed, with 2,243 borrowers receiving a total of P840.3 million in loans.
The state-run bank also extended assistance to rice farmers in the Visayas and Mindanao, including the provinces of Capiz, Leyte, Agusan del Sur, Bukidnon, North Cotabato, and Zamboanga del Sur.
LANDBANK’s steadfast commitment to the agriculture sector supports the celebration of Farmers’ and Fisherfolk’s Month this May, recognizing the invaluable contributions of farmers and fishers in nation-building and achieving food security in the country.
This story highlights the critical role of LANDBANK in supporting the agricultural sector, especially during challenging times, and underscores the importance of financial assistance in ensuring the sustainability and productivity of rice farming in the Philippines.
