PHP2.5 Billion Loans To Rice Farmers Released By Landbank

Up to PHP2.5 billion in loans have been released to the country’s rice farmers as of April 30, 2024, through the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF), according to state-run Land Bank of the Philippines.

Rice farmers in Central Luzon and the provinces of Capiz, Leyte, Agusan del Sur, Bukidnon, North Cotabato, and Zamboanga del Sur also secured the loan. I Photo: Philippine Information Agency

LandBank highlighted that these loans have benefitted more than 15,400 rice farmers and 270 cooperatives with more than 21,300 member-beneficiaries. The amount was channeled to support palay production, milling and trading, re-lending, and acquisition of farm machinery, it added.

Lynette Ortiz, President and CEO of LandBank, emphasized that 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,” Ortiz declared.

Based on LandBank data, the majority of the loan borrowers were from rice-producing provinces, such as those in the Cagayan Valley region, particularly Cagayan, Nueva Vizcaya, and Quirino.

Rice farmers in Central Luzon and the provinces of Capiz, Leyte, Agusan del Sur, Bukidnon, North Cotabato, and Zamboanga del Sur also secured the loan.

The ERCA-RCEF is a credit facility that helps boost the productivity and income of small rice farmers and cushion the initial impact of Republic Act 11203, or the Rice Tariffication Law.

Individual farmers may borrow under ERCA-RCEF up to 90 percent of their total project cost at a low fixed interest rate of 2 percent per year. The loan may be used to purchase farm inputs for rice and rice seed production, as well as farm machinery and equipment for production and post-production.