LAND BANK PHILIPPINES AGRICULTURE LOANS

AGRICULTURAL AND FISHERS FINANCING PROGRAM

The LANDBANK Agricultural and Fisheries Financing Program (AFFP) provide small farmers and fishers access to formal credit to finance their economic activities. The AFFP is being implemented in partnership with the Department of Agriculture (DA) and the Agricultural and Credit Policy Council pursuant to the General Appropriations Act of 2013.

Eligibility Criteria

For Individual Borrowers

This program is for the Non-Agrarian Reform Beneficiary Small Farmers and Small Fishers (NASFSF):

SMALL FARMERS

Those cultivating not more than five hectares of land and/or are engaged as small poultry/livestock raisers who are defined as those raising not more than the following:

• poultry (1,000 poultry layers or 5,000 broilers)
• swine (10 sow level or 20 fatteners)
• cattle (10 fatteners or 5 breeders)
• dairy (10 milking cows)
• goat (50 heads)

SMALL FISHERS

• Those operating fishing vessels of not more than three tons in capacity;
• Those operating fishponds of less than five hectares or fish cages of less than 400 square meters;
• Fish workers in fishing boats, fishponds, or fish processing establishments;
• Any other individuals who are engaged in processing, and distribution

Additional criteria for NASFSFs

1. Member of a service conduit or known to the service conduit (if not yet a member)
2. Registered in the Registry System on Basic Sectors in Agriculture (RSBSA)
3. With viable project whose net income is enough to pay the loan amortizations
4. No outstanding loan for the same project being applied for

For Service Conduit

1. Farmers/Fishers Organizations duly registered with the CDA or SEC
   (If not yet registered, they should register as soon as possible)
2. Operating in priority areas
3. With NASFSF members

Eligible Projects

1. Production, processing and trading of priority commodities of the Department of Agriculture such as, but not limited to, palay, coconut, fishery, and high value crops.
2. For provinces covered by Sikat Saka Program, palay production shall not be covered by AFFP

Loanable Amount per Borrower

• Based on the credit requirement of the project but not to exceed 80% of the project cost.
• Minimum Loan = P 20,000 per project
• Maximum Loan = P 300,000 per borrower for total projects which can finance up to three various projects, simultaneously.

Loan Tenor

• Based on the crop/operating/project cycle
• Based on estimated remaining useful life of fixed assets/ equipment acquired, but not to exceed 5 years

Interest Rate: Fifteen percent (15%) per annum

Mode of Payment: Based on cash flow of the project which can be quarterly, semi-annually or annually

Loan Security

• Deed of Assignment of crop insurance proceeds/proceeds of market contracts
• Unregistered chattel mortgage on object of financing (if any)

Coverage

• As of now, there are 14 provinces namely: Abra, Apayao, Ifugao, Kalinga, Masbate, Romblon, Batanes, Benguet, Ilocos Norte, Isabela, Nueva Vizcaya, Cagayan, Aurora and Zambales.
• Other provinces may be covered upon agreement with LANDBANK and People’s Credit and Finance Corporation.
• Also Covered by Sikat Saka Program

Basic Documentary Requirements

1. Photocopy of Registration Certificate, Articles of Cooperation/Incorporation and Constitution/By-Laws (for and to be submitted by the Service Conduit)
2. Endorsement letter from the DA designated endorser agency/unit (DA-RFU/BFAR/PCA) of eligible Service Conduit
3. Endorsement letter from Service Conduit of its members with certification that:
4. its members are non-ARBs or known to the Service Conduit (if not yet a member); and
5. they have no outstanding loan with any financing institutions for the same project being applied for
6. Copy of Purchase Order/Marketing Agreement with buyers
7. Farm Plan and Budget (if applicable)
8. Business Plan (if applicable)