LAND BANK of the Philippines (LANDBANK) said that it released loans worth P2.2 billion to 13,701 rice farmers and cooperatives in the seven months to July.
In a statement Sunday, the bank said the loans were disbursed from the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF).
LANDBANK said that P1.1 billion in loans financed palay (unmilled rice) production for farmers in the Department of Agriculture’s (DA) Registry System for Basic Sectors in Agriculture.
It added that P507.5 million went to cooperatives for relending to its rice farmer-members; while P394.1 million supported rice traders and millers, and P222 million financed the acquisition of farm machinery and equipment.
LANDBANK President and Chief Executive Officer Lynette V. Ortiz said that “the ERCA-RCEF program forms part of our commitment to advance the agriculture sector and empower Filipino farmers.”
It said 4,783 beneficiaries were from Region 2, “particularly the rice-producing provinces of Cagayan, Nueva Vizcaya, and Quirino.”
Additionally, 1,858 were from Region 3; 1,463 from Region 6; 1,334 from Region 13; and 1,323 from Region 4-B.
Under the ERCA-RCEF program, rice farmers are allowed to borrow up to 90% of the project cost, with a 2% fixed interest rate per year.
It said that loans may be used to purchase inputs for rice and rice seed production, machinery and equipment for production and post-production, working capital for rice and seed trading, as well as relending and rediscounting outstanding loans of small rice farmers.
LANDBANK said it will continue to give out P500 million in loans annually to cooperatives and rice farmers in the DA registry who are based in the 38 rice-producing provinces.
It added that the bank fully disbursed its allocated funding for the program between 2019 and 2022. — Adrian H. Halili
