May 19, 2004


 

Philippines LBP To Finance San Miguel Corp. Cassava And Corn Production
      
The Land Bank of the Philippines (LBP) has tied up with San Miguel Corp. (SMC) in financing the production of corn and cassava in Bukidnon and South Cotabato. It may also fund SMC-linked farmers' acquisition of post harvest facilities that would help processing of the goods into higher valued products.

 

Wilfredo C. Maldia, LBP first vice president, told an LBP first quarter press briefing that LBP's crop loans for cassava are propping up corn and cassava planting which could lead to the establishment of integrated corn facilities in these areas.

 

"They (SMC) provide us an assured market for the production of farmers interested to borrow, and if there's a need to establish a post harvest facility, the dryers and the warehouse, we can provide it," he said.

LBP President Gary B. Teves said LBP has a total of R120 billion loanable fund each year a large part of which may be used to finance crop loans and acquisition of agricultural equipment.

 

Maldia said that under the program, SMC assured to buy all the corn and cassava production financed by LBP through a re-lending program. So far, about 150 hectares have already been planted to cassava and another 1,000 hectares to corn as financed by LBP, he said.

 

The re-lending program provides for LBP's allocation of a R15,000 per hectare loan for corn and R12,000 per hectare loan for cassava. The corn-cassava plants may involve the acquisition of dryers and shellers needed for the crops' preparation for use as input to processing feeds or other products.

 

"The capacity will depend on the area (where the crops are planted)," he said.

 

Aside from extending a loan to SMC-linked farmers' cooperatives, Maldia said LBP is financing planting programs of several other agricultural companies including the palm oil planting of Agusan Mill targeted to reach to 12,000 hectares all over Mindanao over a period of five years, pineapple planting of Dole Philippines in thousands of hectares in Polomolok, South Cotabato, and the seaweed raising of farmers in the Davao Gulf.

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