STATE-OWNED Land Bank of the Philippines is raising its P12-billion farm-credit facility by P3 billion to P15 billion in support of growing nonrice crops, a bank official said.

In a phone interview, Land Bank vice president for corporate affairs Agustin Frederick Apilado said the amount will be added to the P7-billion credit line allotted for growing non-rice crops like corn, coconut, sugar, banana and asparagus. Of the amount, P5 billion will support rice farming.

The bank is making the now-P15-billion credit facility available as a new commodity loan to farmers to encourage a third-season cropping of palay, as well as to grow other crops.

Apilado said the commodity loan can be used to pay off warehouse receipts so that farmers can get rid of their existing loans.

A third-season cropping instead of the additional two, one in the wet season and another in the dry season, has been enforced by the Department of Agriculture (DA) under the quick turnaround, or QTA, planting program.

The Department of Agriculture this year said it is targeting 100,000 hectares of new areas to be planted to rice in nontyphoon areas in the Visayas and Mindanao.

LandBank said the DA will identify the areas suited for third cropping. The bank will provide the funds though its conduits and bank-assisted cooperatives in the eligible areas.

LandBank president and chief executive officer Gilda Pico said the banks’ credit conduits will now include farm organizations like irrigators’ associations, through which loans may be extended to small rice farmers.

She said these organizations need only enter into a collective marketing agreement with a “reliable” palay-buyer, after which the bank will help in negotiations with the buyer to “come up with a mutually beneficial production, technical and marketing agreement.”

She said farmers’ organizations that are unable to meet the criteria of the commodity loan may still be considered under the palay-production program using the hybrid-seeds facility of the DA. Financing will be done through the Agricultural Credit Policy Council.

In an earlier phone interview, Frisco Malabanan, director of the DA’s Ginintuang Masaganang Ani Program, said the department has identified 37 “focus provinces” eligible for third cropping of palay, with Nueva Ecija and Isabela topping the list.

AN OFFICIAL of the Millennium Challenge Corp. (MCC) of the United States said the Philippines is now qualified to share in the $2.25-billion grant intended for eight countries to reduce poverty.

STATE-OWNED Land Bank of the Philippines is raising its P12-billion farm-credit facility by P3 billion to P15 billion in support of growing nonrice crops, a bank official said.

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