Landbank lends P5.8-B for agricultural sector climate resilience

To support building a climate-resilient agribusiness value chain in the country, the Land Bank of the Philippines has approved loans totaling P5.8 billion to 15 borrowers as of June 30, 2022.

Through Landbank’s Climate Resilient Agriculture Finance Program, the Bank aims to finance agricultural technologies, systems, facilities and equipment that will help local farms and fisheries adapt and better resist the effects of climate change, such as violent storms and prolonged droughts.

“Landbank supports investments in innovative technologies that will help address climate change risks in the agricultural sector. This modernization aims to improve the production and income of our local farmers while guaranteeing national food security in the context of global climate change,” said its President and CEO Cecilia C. Borromeo in a press release.

The program can fund crop, livestock and fisheries projects that use climate-resilient technologies, such as the adoption of planting materials and seeding techniques for climate-resilient food crops, piped irrigation which helps prevent water loss during the dry season and climate adaptation. agricultural systems such as terraces.

Modern facilities and equipment that minimize harvest and post-harvest losses during typhoons can also be funded under the program, including rice harvesters, dryers and open-air grain storage facilities.

The program can also provide a credit fund for working capital and the construction of facilities such as greenhouses, reservoirs, rainwater harvesting systems, and farm-to-market roads with drainage, and d other new and emerging technologies approved and approved by the Ministry of Agriculture (DA) and the relevant Communal Office of Agriculture.

Under Landbank’s climate-resilient agriculture finance program, cooperatives, associations and private borrowers classified as sole proprietorships, partnerships or corporations can borrow up to 80% of the total project cost. In the meantime, local governments cannot borrow more than their net borrowing capacity, as certified by the Local Government Finance Office (BLGF).

Term loans for working capital and permanent working capital are repayable for up to one year and three years, respectively, while loans for fixed assets and construction of facilities are payable on a cash flow basis. but no more than its economic life. The interest rate will be based on the prevailing market rate.

Landbank’s Climate Resilient Agriculture Financing Program underscores the Bank’s commitment to advancing a more resilient agricultural sector while promoting environmental sustainability.

In his recent State of the Nation Address, President Ferdinand Marcos, Jr. identified climate change and its impact on agriculture as one of his administration’s top priorities.*

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