The state-owned Landbank of the Philippines said financial support for improving and building agricultural infrastructure and post-harvest facilities made up the bulk of its loans to the agricultural sector.
In a report to Finance Secretary Carlos G. Dominguez III, Landbank said about 94.01 billion pesos of the total 233.6 billion pesos in loans to the agricultural sector at the end of October this year went to agricultural infrastructure and post-harvest facilities.
According to Landbank, outstanding loans to the agricultural sector now represent 93% of its target of 251.5 billion pesos in 2021.
Landbank also assisted 2,987,929 farmers and fishermen, an increase of 13,125 of which 10,189 received regular loans from the figure of 2,974,804 last month.
The bank said the net growth of 5.39 billion pesos in loans in October was attributed to the increase in loan releases of 4.41 billion pesos to small, medium and large agribusinesses compared to last September.
In terms of economic activity, loans supporting agro-related activities such as the improvement and establishment of public markets, farm-to-market roads, warehouses, cold rooms, irrigation systems , fishing port and agrotourism increased with an increase of P5. 0.79 billion.
Of the 233.6 billion pesos in agricultural loans, nearly two-thirds or 150.16 billion pesos supported small, medium and large agribusinesses, while 32.92 billion pesos went to small farmers and fishermen.
The agro-aquatic projects of Local Government Units (LGU) and State Owned and Controlled Companies (GOCC) received 50.52 billion pesos.
Smallholder farmers and fishermen borrowed a total of 1.34 billion pesos through direct loans, and an additional 31.58 billion pesos through conduits such as cooperatives and farmer associations, financial institutions rural and other credit mechanisms.
As of October, Landbank also released 100 percent of the 11.04 billion pesos in farmer-friendly loan program funds it administered for the Department of Agriculture (DA).
For the development of beneficiaries of the credit assistance program (CAP-PBD) that it administers for the Ministry of Agrarian Reform (DAR), the Landbank has also released the entire program fund of 65 million pesos for loans to beneficiaries of the agrarian reform (ARB).
In terms of economic activity, outstanding loans to agro-industrial and commercial activities reached 84.48 billion pesos of total loans, while the livestock sub-sector was supported to the tune of 34, 95 billion pesos; crops, 17.74 billion pesos; and fishing, 2.43 billion pesos at the end of October.
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