LandBank helps out onion sector, extends P1.1B in loans
Land Bank of the Philippines has approved more than P1 billion in loans to onion farmers to increase their output and improve sales nationwide.
“LandBank is doing its share in boosting the local onion supply by providing accessible credit assistance to onion producers in the country. We will continue to service the requirements of agriculture players toward a food-secure and resilient Philippines,” said Cecilia Borromeo, president and CEO of LandBank.
Interested small farmers may secure financing from LandBank through its Sulong Saka Program, which supports agribusiness projects involving the production, processing and marketing of high-value crops such as onions.
They may borrow up to 90 percent of the total project cost for a production loan.
Small and medium enterprises, cooperatives, farmers’ associations and organizations, large agribusiness enterprises and corporations, nongovernmental organizations and countryside financial institutions, on the other hand, may tap a maximum of 80 percent of the total cost.
Local governments may also secure funding from LandBank, provided that the loan amount will not exceed their net borrowing capacity, as certified by the Bureau of Local Government Finance.
LandBank said loans for working capital and permanent working capital were payable in one and three years, respectively, while those for fixed assets and construction of facilities were payable based on project cash flow but not more than its economic useful life.
“The interest is based on market rate, while loans for smallholder farmers will have a concessional fixed rate of 5 percent per annum,” it added.
Among the recipients of the LandBank financing was the cold storage facility of Argo Cold Storage, a subsidiary of Argo International Forwarders Inc.. designed to prolong onion’s shelf life and reduce post-harvest losses due to insect infestation.
Located in Palayan City, Nueva Ecija, the storage facility can accommodate up to 450,000 bags of onions cultivated by farmers in Nueva Ecija and neighboring provinces.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.