Landbank Disburses P2.5 Billion in Loans to Rice Farmers

The Land Bank of the Philippines has announced that it has provided P2.5 billion in credit assistance to rice farmers since 2019. This funding, released under the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF), is part of efforts to support the agricultural sector.

Details of the ERCA-RCEF Program

The ERCA-RCEF is part of the Rice Competitiveness Enhancement Fund (RCEF), which allocates P10 billion annually over six years as mandated by the Rice Tariffication Law. The ERCA-RCEF program, specifically, receives P1 billion annually, shared equally between Landbank and the Development Bank of the Philippines, with each providing P500 million per year to support small rice farmers.

Landbank has successfully disbursed the full P500 million allocation each year from 2019 to 2023. The program allows individual rice farmers to borrow up to 90% of their total project cost at a low fixed interest rate of 2% per year.

Impact and Beneficiaries

“Landbank’s support to the agriculture sector is crucial to ensuring food security in the country. We are committed to providing continued financial assistance to our rice farmers to help them sustain their operations and improve productivity, especially in the face of challenges including the El Niño phenomenon,” said Landbank president and CEO Lynette Ortiz.

The P2.5 billion in loans has benefitted over 15,400 individual rice farmers and 270 cooperatives, encompassing more than 21,300 member-beneficiaries. These funds have been used for palay production, milling and trading, re-lending, and acquiring farm machinery. Notably, 98% of direct borrowers are individual rice farmers.

Regional Distribution

Most loan recipients are from the rice-producing provinces of Region II, including Cagayan, Nueva Vizcaya, and Quirino, with 4,945 borrowers receiving a total of P612.4 million in loans. Region III follows with 2,243 borrowers and P840.3 million in loans.

Landbank has also extended assistance to rice farmers in the Visayas and Mindanao, particularly in the provinces of Capiz, Leyte, Agusan del Sur, Bukidnon, North Cotabato, and Zamboanga del Sur.