Land Bank of the Philippines (LandBank) reported on Tuesday that it released P3.02 billion in loans to farmers and fishermen as of end-June to help them increase their productivity and incomes.

In a statement, the state-run lender said that of the amount, P2.5 billion were extended to 19,367 eligible borrowers in the period under the Agricultural Competitiveness Enhancement Fund (ACEF) lending program.

Of these borrowers, 19,189 are small farmers and fishermen, 119 are micro and small enterprises (MSEs), and 59 are farmers and fishermen’s cooperatives or associations.

The loans have an interest rate of 2 percent annually. Farmers and fishermen may use their loans to buy farm inputs and equipment, while MSEs and cooperatives or associations may use theirs to acquire production, postproduction and processing equipment and facilities.

LandBank also released P527.3 million in loans to 3,115 rice farmers and 22 cooperatives as of June 30 under the Expanded Rice Credit Assistance of the Rice Competitiveness Enhancement Fund (ERCA-RCEF) program.

This program was implemented to support farmers after Republic Act 11203, or the “Rice Tariffication Law,” was implemented. As one of the law’s implementers, the bank is mandated to make available P500 million in loans annually to rice farmers in 59 of the country’s 80 rice-producing provinces until 2024.

These loans also have an interest rate of 2 percent yearly. But for on-lending, the rate is 0 percent annually, with a prescribed pass-on rate to end-borrowers of up to 6 percent yearly.

Farmers may use loans under this program to buy inputs for rice and rice seed production, and production and postproduction equipment. Cooperatives can use theirs not only to purchase inputs, but also as working capital for rice and rice seed trading operations and other rice farming-related activities.

“LandBank is continuously working with the Department of Agriculture to intensify our support to the agriculture sector. Through the ACEF and ERCA-RCEF loan programs, we aim to assist more farmers and [fishermen], as well as their cooperatives and associations, so [that] they can boost their productivity and profitability, and contribute significantly in ensuring food security in the country, especially with the ongoing Covid-19 (coronavirus disease 2019) pandemic,” LandBank President and Chief Executive Officer Cecilia Borromeo said in the statement.