Landbank loans to farmers rise 25%

Loans extended by state-run Land Bank of the Philippines to farmers and fisherfolk rose 25 percent in 2011 amid continued efforts to make credit more accessible to the sector.

The bank said in a statement yesterday that it released a total of P40.5 billion worth of loans to small farmers and fisherfolk last year, up from the P32.3 billion provided in 2010.

“We intensified our support to small farmers and fisherfolk by continuously expanding our reach and making credit available to the marginalized sector,” Gilda Pico, Landbank president and chief executive officer, said.

The bank said more than 900,000 small farmers and fisherfolks benefited from the credit assistance extended last year.

The loans, Landbank said, were released through 979 cooperatives and 367 countryside financial institutions.

The bank said loans to support crop production reached P20.9 billion last year, climbing 17 percent from the P17.9 billion released in 2010.

The bank noted that loans for palay production in particular amounted to P15.5 billion last year, 20 percent higher than the P12.9 billion provided in 2010.

Marketing loans, it said, reached P12.9 billion last year, up 52 percent from P8.5 billion in 2010.

Landbank said farmers and fisherfolks in Central Luzon accounted for the bulk of loan releases to the sector which amounted to P9.6 billion, while Cagayan Valley came in second, receiving P5.7 billion.

Central Visayas received the third biggest share of loans for the sector which received P4.4 billion, while Northern Mindanao had the fourth largest share with P3.8 billion.