The Land Bank of the Philippines has launched a new lending program to assist hog raisers in sustaining and increasing pork production with an earmarked budget of P15 billion.
The Land Bank yesterday launched the Special Window and Interim Support to Nurture Hog Enterprises (SWINE) lending program for commercial hog raisers registered as cooperatives or farmers’ associations, small and medium enterprises and large enterprises or corporations.
Loans under the program shall be used for swine production covering the acquisition or importation of semen or breeding animals; feed milling operations; construction, improvement or retrofitting of necessary facilities that are compliant to biosecurity protocols of the Department of Agriculture, the industry or integrators; acquisition of fixed assets; and as working capital.
Eligible borrowers may avail of a short-term loan line or a term loan for up to 80 percent of the total project cost or financing requirement, with an affordable fixed interest rate of 3 percent per annum for three years, subject to annual repricing thereafter.
Short-term loans will have a tenor of one year while term loan for permanent working capital is payable up to five years with fixed asset acquisition payable based on the cash flow or payback period of the project.
The SWINE program will be available until Dec. 31, 2026 in line with the government’s hog re-population plan.
The DA will provide the list of eligible program borrowers and assist them in the preparation of a business plan, enrollment in the Philippine Crop Insurance Corp. and in securing necessary permits.