Land Bank drives rural growth with over 713 billion pesos in outstanding loans

Breaking down barriers towards rural development and fostering agricultural growth, the Land Bank of the Philippines (Land Bank) has successfully directed a total of P713.8 billion in outstanding loans towards these sectors. The stat was shared through an announcement made on Tuesday. Land Bank highlighted that these significant figures, observed as of June 30 this year, are a testimony to their commitment to their social mandate of bolstering development in the countryside.

Lynette Ortiz, the CEO and President of Land Bank asserted their comprehensive approach towards uplifting all stakeholders within the value chain. “We will continue to extend accessible and responsive financing to ramp up agriculture modernization and productivity, paving the way for more resilient local communities,” she promised.

Significantly, the said P713.8 billion accounts for 69% of Land Bank’s total portfolio. This staggering amount triples the statutory 25% requirement imposed on local banks to appoint finances for agriculture, fisheries and rural development (AFRD) in compliance with the ‘Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022’ under Republic Act 11901.

The Act mandates AFRD financing as a means to spur productivity and augment the earnings of agricultural and fisheries households. The objective is to boost agricultural competitiveness and promote the sustainable evolution of rural communities, reported Manila Times.

To break down the allocation, the brunt of the AFRD loans, precisely P244.1 billion, fueled the advancement of public rural infrastructure. This covered not just basic amenities like highways, streets, bridges and transport systems, but also spanned irrigation, public markets, warehouses and solid waste management, among other development projects. Land Bank dedicated P167 billion for the benefit of both its clients and society with schemes that decrease environmental pressures. These plans include green finance, which funds projects that mitigate climate change and aid adaptation.

A significant P107.8 billion was directed towards the heart of the cause – agriculture and fisheries production. This comprised fund allocation for the processing of fisheries, agri-based products, and the procurement of necessary farm inputs. A sum of P70.4 billion aimed at accelerating the modernisation and digitalisation of farming, fishery, as well as agri-business activities and related financial and management information systems.

Finally, Land Bank did not forget the increasing appeal of agri-tourism. An amount of P78.5 million was provided to boost initiatives that draw tourists to agricultural areas. The remaining AFRD financing contributed to supporting entrepreneurial activities related to farms and fisheries, mechanisation of agricultural activities, commodities, essential facilities, and types of machinery, as well as capacity-building projects.