THE state-run Land Bank of the Philippines (LBP) said loan releases under a program that seeks to prop up food production in the Philippines reached P4.8 billion as of September.
LBP President and Chief Executive Officer Gilda E. Pico said the projects financed by the Food Supply Chain Program include corn production and hog fattening; oil palm production and processing; fruits and vegetable production and processing; rice and corn production, processing and trading; cardava banana production and processing; fish production and processing; onion production, and sugarcane production and milling.
“We remain focused on supporting the national government’s thrust toward promoting food security and increasing agricultural productivity.
The Food Supply Chain Program is a fitting platform to provide financial and technical support along the value-added chain of a commodity and help increase the income of small farmers, fisher folk, and small- and medium-scale producers whom we are committed to help,” said Pico in a statement.
The bank is targeting to release as much as P7 billion under the program this year.
Since the program was launched in October last year, LBP said it has financed 75 projects involving 75 anchor firms and 288 cooperatives, farmer organizations and nongovernmental organizations with whom it has signed production, technical and marketing agreements.
The program is specifically designed to provide financial assistance to key players in the food system, such as agricultural producers, service providers, processors and various market players; market linkages between agricultural producers and processors; and capacity-building support to strengthen farmers’ organizations and enable them to meet the product requirements of anchor firms.
Anchor firms are expected to buy the produce of the participating cooperatives and organizations and provide technical assistance to improve productivity and product quality.
Earlier, the bank reported that it extended a total of P16.6 billion in loans to small farmers and fishermen in January to July, almost 33 percent higher than the P12.5 billion the bank extended in the same period last year.
The LBP noted that the loans were channeled through farmers and fisher folk cooperatives and countryside financial institutions.
Pico said farmers in the palay subsector accounted for the majority of the P5.9-billion loans in January to July.
“The loans provided to palay farmers during the period were [almost] 14 percent higher than the amount porovided to farmers in the same period last year,” Pico said.
Corn farmers were given loans totaling P869 million, 221 percent higher than the P271 million provided to them in January to July 2010.
Loan releases to coconut farmers also went up by almost 103 percent to P739.6 million, from P364.5 million in the same period last year.
