The humid air in the Ilagan City Community Center buzzed with anticipation recently as the murmur of over 1,300 hopeful voices filled the hall as farmers from across Isabela gathered for the launch of the Land Bank of the Philippines’ (LANDBANK) groundbreaking Agriculture Growth and Resource Integration through Strategic and Enhanced Delivery of Support and Opportunities (AGRISENSO) PLUS Lending Program.
For many, like yellow corn farmer Gilbert Pacis, whose weathered hands told tales of seasons of hard work and precarious finances, the initiative represented more than just financial assistance; it was a lifeline pulling him away from the clutches of high-interest informal lenders that had long plagued his livelihood.
“Before,” Pacis explained, his voice thick with emotion, “I would often have to borrow at exorbitant rates just to be able to buy seeds and fertilizer. This would eat into my profits even before the harvest. But because of this program [AGRISENSO Plus], we will no longer have to worry about our capital. It gives me the courage to plant again,” Pacis shared, his words echoing the collective relief and renewed vigor among the attendees.
The program arrives at a crucial time for Isabela, a province known for its sprawling fields and vital contribution to the nation’s food security, where access to affordable credit has long been a hurdle for small-scale farmers.
LANDBANK’s accessible and affordable lending program
The AGRISENSO Plus Lending Program is strategically designed with the primary objective of delivering crucial credit assistance to a broad spectrum of the agricultural value chain. This includes not only small farmers and fishers like Pacis, but also Agrarian Reform Beneficiaries (ARBs), Micro, Small and Medium Enterprises (MSMEs), and other vital players, all with the overarching goal of improving agricultural productivity.
This comprehensive program targets a wide array of beneficiaries, including Small Farmers and Fishers, ARBs, Farmers’ and Fishers’ Cooperatives and Associations (FFCAs), Agrarian Reform Beneficiary Organizations (ARBOs), and MSMEs directly involved in the agricultural value chain.
Recognizing the interconnectedness of the sector, the program also extends its reach to large enterprises and anchor firms engaged in agri-supply, agri-financing, rice milling, agri-farm schools, manufacturing of agri-inputs and machinery, and the trading of agricultural goods.
Notably, agriculture graduates who have completed government-sponsored or endorsed scholarship programs or possess at least two years of intensive agricultural training are also eligible within three years of their graduation or certification.
For individual small farmers and fishers, and ARBs to be eligible, they must be at least 18 but not more than 65 years old upon loan application, possess a marketable surplus beyond subsistence, directly engage in or supervise farming operations (or be a cultivating leaseholder), and be registered in the Registry System for Basic Sectors in Agriculture (RSBSA) or the Fisherfolk Registration System (FishR). Small rice farmers in irrigated areas must also be included in the updated NIA masterlist.
Empowering farmers, fishers, MSMEs, and large enterprises
The program, which is definitely not an investment scam, offers financing for a diverse range of qualified purposes.
For small farmers, fishers, and ARBs, this includes the production of rice, corn, high-value crops, and seeds, fisheries production, pond development, and the purchase or rental of essential farm equipment and machinery. FFCAs, ARBOs, and MSMEs can access funds for relending to their members or to finance projects such as production, fisheries, equipment acquisition, facility construction or rehabilitation (including pre- and post-harvest), and both permanent and trading working capital.
Large enterprises, on the other hand, can utilize the program for similar purposes, including agri-agra related automation or digital systems.
The loanable amount can reach up to 90% of the total production cost for production loans and up to 80% of the total acquisition or project cost for fixed assets. In terms of loan features, small farmers, fishers, and ARBs benefiting from direct lending enjoy a favorable fixed interest rate of 4.0% per annum under blended funding.
Agriculture graduates have access to prevailing rates (with a minimum of 7.0% for short-term loans/lines and 7.5% for term loans). Interest rates for FFCAs, ARBOs, MSMEs, and large enterprises are based on prevailing rates and the borrower’s credit rating, with minimums of 6.5% for short-term loans and 7.0% for term loans. Loan tenors vary, with short-term loans extending up to 360 days based on the production cycle, while term loans can range from over one year to ten years, aligned with the project’s cash flow and the asset’s economic life.
From loan applications to financial skills
The launch event itself was a vibrant testament to the program’s potential impact. An impressive 1,304 farmers, their faces etched with both hope and cautious optimism, turned out. Over 500 immediately seized the opportunity, initiating their loan applications on the spot.
LANDBANK further streamlined the process, setting up stations to facilitate on-site ATM card applications – a crucial step towards integrating more farmers into the formal banking system, granting them greater financial autonomy and security beyond cash transactions. Anticipation is high, with an additional 400 loan applications expected from farmers currently finalizing their requirements, eager to break free from the constraints of limited capital.
The success of AGRISENSO Plus hinges on collaboration, and the launch event underscored this commitment. Key stakeholders, including Ilagan City Mayor Hon. Josemarie L. Diaz, LANDBANK Northern Luzon Lending Group Head First Vice President Eduardo N. Reyes, and dedicated representatives from local LANDBANK branches, were present, their unified presence demonstrating unwavering support for the program’s success.
The participation of SAGITTARIAN Agricultural Philippines, Inc. President and CEO Jose Avelino C. Diaz highlighted the crucial role of strategic partnerships in bolstering sustainable agricultural growth within the region.
Beyond the immediate infusion of much-needed funds, LANDBANK recognizes that long-term prosperity requires more than just capital. Rostom M. Molina of the Philippine Crop Insurance Corporation (PCIC) addressed the farmers, detailing vital insurance services that offer a crucial safety net against the unpredictable forces of nature and unforeseen agricultural risks.
Complementing this, Engr. Roquito L. Cabras of the LANDBANK Countryside Development Foundation, Inc. (LCDFI) led an engaging and practical session on Digital Financial Literacy. This forward-thinking initiative aims to bridge the digital divide, empowering farmers with the essential skills to manage their finances effectively and navigate the increasingly digital landscape of modern commerce.
LANDBANK’s holistic approach to farmer development
The AGRISENSO Plus program is further strengthened by its integral capacity-building component, the ASCEND Program. ASCEND focuses on enhancing financial literacy and entrepreneurial acumen through targeted training on modern, efficient farming techniques, sound financial management principles, and improved strategies for accessing wider markets.
By investing in the human capital of the agricultural sector, LANDBANK aims to empower farmers not just with funds, but with the knowledge and skills necessary to optimize their productivity, increase their profitability, and build truly sustainable livelihoods.
As Isabela, a vital cog in the nation’s agricultural machinery, prepares for the upcoming yellow corn cropping season, LANDBANK is actively scaling up its outreach efforts to ensure that these vital resources reach even more farmers across the province.
Through the combined power of the accessible credit offered by AGRISENSO Plus and the empowering knowledge provided by the ASCEND Program, LANDBANK reaffirms its unwavering commitment to empowering Filipino farmers across various sectors, from smallholders to agricultural graduates and larger enterprises.
This groundbreaking initiative in Isabela serves as a powerful beacon of hope, demonstrating how targeted financial support, coupled with crucial capacity-building measures, can indeed cultivate genuine growth and foster long-term financial stability within the fertile heartlands of the Philippines, paving the way for a more prosperous future, one harvest at a time. The seeds of change have been sown, and the farmers of Isabela, along with a diverse range of agricultural stakeholders, are ready to reap a more bountiful harvest.
(For further inquiries about the AGRISENSO Plus Lending Program, interested parties can contact the 24/7 LANDBANK Customer Care Hotline at Metro Manila: (02) 8405-7000, PLDT/Smart Toll-Free Number: 1-800-10-405-7000.
