Land Bank bares programs for sugarcane farmers

June 11, 2020 Tags: featured

Land Bank of the Philippines officers, led by Negros Occidental Lending Center Manager Malou Chiu, presented the financial institution’s programs to assist sugarcane farmers amid the Covid-19 pandemic.

Enrique D. Rojas, president of the National Federation of Sugarcane Planters, facilitated the presentation, so that sugarcane farmers can avail of government financing during these challenging times for the Philippine economy.

“This presentation was prompted by the letter which our Federation sent to Sugar Regulatory Administrator Hermie Serafica two weeks ago. In that letter, we pointed out that, if given the right government support and financing, the sugar industry and the entire agriculture sector can help expedite the economic recovery of the country amid Covid-19, by providing more jobs and enhancing the circulation of money,” Rojas said.

NFSP President Enrique D Rojas facilitated the presentation by Land Bank of the Philippines officials, led by LBP-NOLC Manager Malou Chiu, of financial assistance programs, which can assist sugarcane farmers amid the COVID-19 pandemic.

“Administrator Serafica endorsed our letter to Agriculture Sec. William Dar and to Land Bank officials, and he also asked Land Bank officials to brief our Federation on the financial programs which we can avail of from Land Bank. For this, we sincerely thank Administrator Serafica and Sec. Dar, and we are also grateful to Land Bank officials, particularly LBP-NOLC Manager Malou Chiu,” Rojas further said.

Chiu made the presentation before NFSP officers and members, comprising of presidents of numerous NFSP-affiliated planters associations and cooperatives, at the NFSP Social Hall in Alijis, Bacolod City last Friday.

Foremost among the programs is the Socialized Credit Facility with an allocation of P300 million annually from the Sugarcane Industry Development Act, and implemented by LBP in coordination with the Sugar Regulatory Administration.

The financing can be utilized for the purchase of production inputs, as well as farm machineries and implements, such as tractors, cane loaders and harvesters, for the continuous production of sugarcane.

NFSP Enrique D Rojas, with the presidents of NSFP-affiliated planters associations and cooperatives all over Negros, discuss with Land Bank officials the financial assistance programs, which sugarcan farmers can avail of.

Eligible to avail of the program are small individual farmers cultivating up to 10 hectares of sugarcane farm, SRA-registered block farms, and common service providers, such as associations, cooperatives and non-government organizations.

For small farmers, the loan bears an interest rate of 2% per annum, without any collateral. In lieu of collateral, the farmers have to issue a deed of assignment of their sugar quedans in favor of LBP.

The production loan for small farmers and block farms can cover up to 90% of the project cost, based on the farm plan and budget duly reviewed and affirmed by SRA.

Service providers, who want to acquire farm machineries and equipment, can avail of up to 90% of their project cost.

“SRA, thru its Mill District Officers, directly processes the requirements with the farmers. When everything is in order, SRA then endorses the documents to us, and we facilitate the release of the amount after compliance with bank protocols,” said Chiu.

SRA Mill District Officer Roberto C. Velasco Jr. reported that, under the Social Credit Facility, SRA has endorsed P611 million worth of loans to Land Bank, as of March 31, 2020. The bank has approved P275 million and has released P162 million already.

Julian Geolingo, SRA Mill District Officer for northern Negros Occidental, added that hundreds of small farmers have already availed of the facility, and that SRA has disseminated the program to all planters associations and cooperatives, thru the Mill District Development Councils.

For farmers with farms of more than 10 hectares, Chiu said that LBP also offers financing similar to a normal commercial loan.

Malou Chiu, manager of the Land Bank of the Philippines – Negros Occidental Lending Center, presents the mechanics of the socialized Credit Facility under the Sugarcane Industry Development Act and the national governments’s I-RESCUE Lending Program. With her area Account Officers Francisco Jubelag VIII, Laila Jane Santander as well as Sugar Regulatory Administration Mill District Officers.

Moreover, she revealed that the national government has made Land Bank as the implementing arm of its I-RESCUE (Interim REhabilitation Support to Cushion Unfavorably-affected Enterprises by CoVid-19) Lending Program.
With an initial fund of P10 billion, this program aims to provide additional funds for working capital and loan restructuring under more flexible terms and conditions for small and medium size enterprises, cooperatives and microfinance institutions.

The loan is payable within five years, with a two-year moratorium on payment and a fixed interest rate for three years.

Loan restructuring can also be extended, via additional loan, extended payment period, or a combination of other means, to enable existing borrowers to rehabilitate and restore operational cash flow.

The loan can be payable up to a maximum of 10 years, with up to three years grace period on principal and up to one year grace period on interest, depending on cash flow.

The deferred interest shall be non-interest bearing, and shall be amortized equally, either mother or quarterly, within three years, inclusive of the one year grace period.

Interested parties may visit the nearest Land Bank branch for more details, said Chiu.*