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May 30, 2024

Sowing growth: Land Bank fuels swine sector with P8.05 billion loans

Land Bank of the Philippines has extended a total of P8.05 billion in loans to 36 borrowers under its SWINE Lending program as of the end of June 2023.

This translates to an average of P224 million per borrower, according to LandBank.

The loans financed swine production, including the purchase of hogs and feeds, the construction and expansion of piggery buildings and other facilities, as well as working capital.

Under the SWINE program, Land Bank can lend as much as 80% of the project cost to commercial hog raisers registered as cooperatives or farmers’ associations, and small and medium enterprises.

Large enterprises or corporations and startup commercial swine farms can also utilize the facility. Loans for working capital and permanent working capital are payable in 1-5 years, while the maturity of loans for fixed assets and facilities will depend on the project cash flow but not exceeding its economic useful life.

To be eligible for the loan, the borrower must have certification from the Bureau of Animal Industry indicating that the location has been released from the African Swine Fever quarantine.

Additionally, a certification from the regional field office of the Department of Agriculture is required, confirming that the borrower has complied with the requirements and is allowed to restock at full capacity.

A certificate from the local government unit is also necessary, stating that the farm has passed at least Level 1 Biosecurity, along with other requirements such as a certification of registration from the Department of Trade and Industry for single proprietorship or a certificate of registration from the Cooperative Development Authority or the Securities and Exchange Commission.

The interest on the loan is 3% per annum for the first three years, subject to repricing.