Amid the devastating impact of El Niño on local harvests, Land Bank of the Philippines said it remains aggressive in extending financial support to rice farmers, with P2.5 billion in loans released through the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF), as of April 30.
Landbank, in partnership with the Department of Agriculture, has been successful in fully disbursing the P500-million allocated annual fund under ERCA-RCEF from 2019 to 2023.
It continues to make loans available to rice farmers and their cooperatives at affordable interest rates with minimum documentary requirements.
“Landbank’s support to the agriculture sector is crucial to ensuring food security in the country,” its president and chief executive officer Lynette Ortiz said in a press release May 28. “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.”
The P2.5-billion loans benefitted over 15,400 individual rice farmers and 270 cooperatives with more than 21,300 member-beneficiaries, which were channeled to support palay production, milling and trading, re-lending, and acquisition of farm machineries.
Under the program, 98 percent of the bank’s direct borrowers are individual rice farmers.
Majority of the loan borrowers came from the rice producing provinces of Region 2, particularly Cagayan, Nueva Vizcaya, and Quirino, with 4,945 borrowers for a total of P612.4 million in loans released. Region 3 has 2,243 borrowers for total loan releases amounting to P840.3 million.
The state-run bank also extended assistance to rice farmers in the Visayas and Mindanao, including the provinces of Capiz, Leyte, Agusan del Sur, Bukidnon, North Cotabato, and Zamboanga del Sur.
The bank, meanwhile, has been tapped by the Department of Social Welfare and Development to ensure an efficient and timely delivery of financial relief to crisis-affected individuals, including those in remote and underserved communities.
Under the DSWD’s Assistance to Individuals in Crisis Situation (AICS) program, Landbank will serve as disbursement partner and will engage financial service providers to effectively facilitate payouts in identified regions.
This new set-up eliminates the need for beneficiaries in remote communities and geographically isolated and disadvantaged areas (GIDAs) to travel to other towns and cities to seek and receive financial aid from DSWD regional offices.
“Through our partnership, we look to ensure the swift and timely delivery of financial aid to vulnerable individuals and families suffering from unforeseen life events or crises, including those beneficiaries in far-flung areas,” Ortiz said.
The AICS program supports the recovery of individuals and families suffering from unexpected life events or crises by providing assistance for medical, burial, transportation, food, educational, financial, or other essential needs. ||
