February 3, 2023

The Landbank of the Philippines, in partnership with the Department of Agriculture, continues to provide financial assistance to farmers and fishers, as well as their cooperatives and associations, to help increase their productivity and profitability.
Under the Agricultural Competitiveness Enhancement Fund (ACEF) Lending Program, the Bank has released a total of P2.5 billion in loans to 19,367 eligible borrowers as of June 30. Of the total borrowers, 19,189 are small farmers and fishers (SFFs), 119 are micro and small enterprises, and 59 are farmers and fisherfolk cooperatives/associations.
Direct lending under the ACEF Lending Program has been made available to eligible borrowers at an affordable interest rate of two percent per annum.
Individual farmers and fishers may use the loan for the purchase of farm inputs and equipment or for farm improvement. For MSEs, cooperatives and associations, the loan may be used for the acquisition of machineries, equipment and facilities for agri-based production and post-production, as well as processing.
Landbank has also released P527.3 million in loans to 3,115 rice farmers and 22 cooperatives as of June under the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF) Program.
The ERCA-RCEF Program was implemented to provide support to farmers following the implementation of Republic Act 11203 or the Rice Tariffication Law. Landbank is one of the implementing agencies for the P1-B RCEF allocation for credit, and mandated to make available P500M in loans annually to rice farmers in 59 out of 80 rice-producing provinces covered by the program from 2019 to 2024.
Direct lending under the ERCA-RCEF Program has been made available to eligible borrowers at an affordable interest rate of two percent per annum, and for on-lending, zero interest per annum with prescribed pass-on rate to end-borrowers of up to six percent per annum.
Individual farmers may use the loan for the purchase of farm inputs for rice and rice seed production, and acquisition of farm machineries and equipment for production and post-production.
For cooperatives, the loan may be used for the purchase of farm inputs for rice and rice seed production as a collective operation, working capital for rice and rice seed trading operation and other rice farming-related activities, acquisition of machineries and equipment, relending to small rice farmers listed in the Registry System for Basic Sectors in Agriculture (RSBSA), and rediscounting of existing loans of small rice farmers listed in the RSBSA. – Press release