The Land Bank of the Philippines has turned over a grains complex to the provincial government of Isabela that is expected to support the region’s palay procurement program for small farmers.
The bank said the facility will help as much as 16,667 small rice farmers from 34 municipalities, three cities and 1,055 barangays in the province.
The grains complex is part of a P2-billion loan availed by the local government from Land Bank, of which P1 billion will be used as working capital for palay procurement with the remaining P1 billion serving as standby credit for investment in equipment and machineries.
Under the partnership, the province of Isabela is leasing the grains complex from Land Bank with obligations to repair, rehabilitate and upgrade the facility, including the typhoon-damaged warehouse and rice mill buildings.
In a statement, Isabela Governor Rodito Albano III said the palay procurement program is expected to boost the productivity and income of small farmers in the area, by offering an assured and reasonable price for their produce while stabilizing the price of palay in the local market.
“The actual return of investment here is not really the amount that the province will earn. The province’s income here will be the help to farmers for prices to be at least stable. That way, we are also helping farmers,” Albano added.
Land Bank remains the biggest lender to the agriculture sector, with loans reaching P257.94 billion as of May 2022.
The agriculture loans have financed various economic activities of major players in the industry, including local government units. – Jed Macapagal
