The Land Bank of the Philippines is offering a new credit facility to coconut farmers to help increase production of the crop as well as boost the income in coconut-producing communities nationwide.
Land Bank said in a statement under its Coconut Farmers and Industry Development (CFID) lending program, eligible coconut farmers, cooperatives and associations can access financing for various projects, including the establishment of intercrops and poultry or livestock integration in coconut farms.
The loan program has a total P333.3 million fund composed of P83.3 million or 25 percent from Land Bank funds and P250 million or 75 percent from the Credit Component Allocation under the Coconut Farmers Industry Trust Fund Act.
Under the CFID lending program, the bank will provide short-term and long-term loans of at least P1 million, with a fixed interest rate of 2 percent per annum.
The program is set to run until 2071 to accommodate as many stakeholders from the coconut industry as possible.
The bank said individual coconut farmers can use the loan for working capital to acquire machines and equipment as well as establish facilities. Coconut cooperatives and associations can utilize the financing for relending and rediscounting to their members.
“The CFID lending program forms part of the national government’s whole-of-nation approach towards providing meaningful investments to the coconut industry. Land Bank remains committed to providing accessible and affordable credit to coconut farmers nationwide to help improve their livelihood,” said Cecilia Borromeo, Land Bank president and chief executive officer, in a statement.
The bank added interested borrowers may contact Land Bank’s lending centers or branches nationwide or through its customer service hotline.
According to data from the Philippine Statistics Authority, the country produced 14.93 million metric tons (MT) of coconut last year, a 1.43 percent increase from 2021’s 14.72 million MT.
