Presentation during the Bureau of Agricultural Research (BAR) Seminar Series on January 25, 2018 at RDMIC Bldg., cor. Visayas Ave., Elliptical Rd., Diliman, Quezon City

1. LBP Agricultural
and Fisheries Credit
Programs

2. General Lending Guidelines for
Cooperatives
Credit Programs for Small Farmers and
Fishers/Cooperatives
Presentation Outline

3. General Lending Guidelines
for Cooperatives

4. II. Standard Requirement
•Organization and Management
(Membership, leadership and management,
patronage of business, CBU and savings,
continuing education and skills development,
Policies, Systems and Procedures installation,
books of accounts)
•Business Operation
(Business volume and diversification, provident
services, market linkages)
•Financial and Loan Portfolio
(Profitability, liquidity and co-op relationship
with LBP)
I. Minimum Requirement
• Duly registered with the CDA
• Membership of at least 60
• Paid up capital of P30,000.00
• Core management team of
Manager, Cashier/Treasurer and
Bookkeeper
• With updated Books of
Accounts
• Members have attended PMES
A
B
C
D
Micro Small Medium Large
COMPONENTS
Maturity Level Classification
Enhanced Cooperative Accreditation CriteriaEnhanced Cooperative Accreditation Criteria

5. Risk Asset Acceptance CriteriaRisk Asset Acceptance Criteria
Acceptance Parameters Acceptance Criteria
Character • No adverse findings on the borrower
• No adverse on the principals
(i.e., Directors and Key Officers)
Capacity • With well defined source of repayment
• Track record
o At least 3-year profitable operations (existing)
• Net Past due ratio of not more than 25%
• Debt Service Cover of at least 1.0x
Condition Positive /favorable outlook of the industry
Capital • Capital requirement per CDA but not less than
P30,000.00
• Debt-to-Equity Ratio of at least 85:15

6. 7
Eligible Projects Any viable income-generating projects that do
not violate any law, rules, regulations, norms
and moral values
Loan Purpose • Agricultural Production
• Fisheries/Aquaculture
• Fixed Assets (including land acquisition)
• Rediscounting/Relending
• Working Capital/Commodity Loan
• Livelihood
Credit Facilities • Short Term Loan Line
• Term Loan
• Rediscounting Line
Basic Lending Policies

7. 8
Loanable Amount • For production loan, based on any of the following:
 Actual need and market condition of the
client/borrower following the standard project cost
sharing of 80:20
 Agricultural Commodity* Module prepared LBP-
Development Assistance Department
 Data available with other agencies (i..e, DA & its
attached agencies
 Specific requirements in the Tripartite Agreement
between the Bank and its conduits
• For rediscounting, up to 85% of the current outstanding
balance of the sub-borrowers’ PNs (100% for palay & corn).
• For fixed assets – not more that 80% of the
acquisition/construction cost)
Basic Lending Policies
* LBP’s established loan ceiling for palay production loan ceiling (Hybrid rice- P50,000/hectare;
Inbred rice – P42,000/hectare)

8. 9
Interest Rate Prevailing LBP Rate at the time of loan availment
Term of Loan • Production and Commodity Loan
 180 days to 360 days
• Fixed Asset Acquisition/Building Construction:
 Based on project cash flow or the economic useful
life of fixed assets or remaining useful life for
second-hand/refurbished machines.
• Working Capital
 Based on project’s cash flow but not to exceed
one (1) year
Basic Lending Policies
Basic Lending Policies

9. 10
Acceptable Collateral/
Securities/Guarantees
For Production Loan
•Deed of Assignment of Produce
•Deed of Assignment of Sub-borrowers’ PNs
For Working Capital / Fixed Asset
•Real Estate Mortgage (REM)
•Chattel Mortgage (CM)
•Assignment of Receivables
•All available credit enhancement instruments
(insurance/surety) that maybe availed
whichever is applicable
Basic Lending Policies

10. LBP Credit Programs for
SFFs/Cooperatives

11. PROGRAM DESCRIPTION
1. ISDA Program
(Integrated Support for
the Development of
Aquaculture)
A growership program for the fisheries sector anchored on
the institutional buyers or processors linked with small
fisherfolk, individuals and SME growers.
2. Seaweed Financing program A credit assistance program for coops, farmer
associations, SMEs and large agribusiness enterprises, for
the promotion of seaweed production, harvesting and
marketing as a means of livelihood business opportunity.
3, MILK Program
(Masustansyang Inumin sa
Likas na Kalusugan)
A joint program of LANDBANK and National Dairy
Authority which provides financial and technical support
to small farmers, coops, federations SMEs, large
agribusiness enterprises, rural/cooperative/thrift banks to
support dairy production, processing, marketing and other
dairy-based economic activities.

12. PROGRAM DESCRIPTION
4. CACAO 100 Financing Program
(Credit Assistance for Cacao Agri-
Business and Organizations )
Provides credit assistance to cacao industry
stakeholders to help attain the industry’s mission
to increase production area to 100,000 ha.
5. Coffee 100 Financing Program Provides credit assistance to the coffee industry
stakeholders to help fill the gap of the local
demand of 100,000 MT (by 2020).
6. Coconut Production and Processing
Financing Program
Provides credit assistance to coconut industry
stakeholders engaged in production and
processing.
7. KAWAYAN Program (KAlikasang
Kabuhayan para sa WAstong
PamaYANan)
Provides credit assistance to bamboo industry
stakeholders
Aims to contribute in mitigating the effects of
climate change

13. PROGRAM DESCRIPTION
8. Enhanced Sugarcane
Financing Program
Provides credit assistance to sugar planters, millers,
traders and farmer's cooperatives
9. Oil Palm Financing Program Provides credit assistance to oil palm industry
stakeholders particularly farmers for their planting,
rehabilitation and fertilization needs and to contribute
with the overall efforts of the government in generating
employment and pursuing the attainment of inclusive
growth in the countryside by optimizing the business
opportunities in oil palm
10. Onion Financing Program Provide producers interim financing at harvest time to
meet cash flow needs without having to sell their
commodities when market prices are typically at harvest-
time lows. Allowing producers to store production at
harvest facilities more orderly marketing of commodities
throughout the year.
11. LBP-SMC Corn and Cassava
Assemblers/ Consolidators
Financing Program
Provides credit assistance to qualified SMC assemblers
and assure the market for corn and cassava produce of
the small farmers thru the assemblers

14. PROGRAM DESCRIPTION
12. Agri-Mechanization
Financing program
Provides credit assistance to promote mechanization of
production processes from planting-harvesting-processing
to increase efficiency, reduce postharvest losses and lower
cost of production, to modernize the agriculture sector in
order to prepare for the challenges brought about by
globalization/ASEAN integration and to enhance farm
productivity and efficiency in order to achieve food security
and safety and increase farmers' income.
13. Climate Resilient
Agriculture
Provides credit assistance to various clientele to promote
climate change mitigation and adaptation initiatives
towards climate resilient agriculture
14. Banana Financing
Program
Supports the industry’s thrust of making the Philippines as a
leading banana (product) exporter contributing towards
food security and improvement of the socio-economic
status of all the stakeholders.

15. PROGRAM DESCRIPTION
15. Poultry Lending
Program
Help promote sustainable, competitive and self-sufficient poultry
production; to help promote the government's thrust in pushing
poultry exports to existing and emerging markets, particularly in
the ASEAN and Middle East countries.
16. Rubber Financing
program
The program aims to support the country in attaining an inclusive
and globally competitive rubber industry providing sustainable
benefits to all stakeholders and a cost-competitive, quality-driven,
supply-reliable and product-diversified industry from farming to
rubber products manufacturing under sustainable practices
17. LANDBANK
CAlamity
REhabilitation Support
(CARES) Program
A rehabilitation credit assistance program available to various
Bank’s existing and new customers for them to recover from the
destruction brought about by calamities and affected by arm
conflict in Marawi

16. • CDA Registration
• Articles of Cooperation and By-Laws
• Information Sheet of the Board of Directors and COMAT
with ID pictures
• Cooperative Board Resolution authorizing the cooperative
to borrow (amount & purpose) and designating at least 2
officers to negotiate and sign loan documents
• Master list of members
• Loan Application
• Project Proposal
Documentary Requirements

17. For Existing Business
–Income Tax Return for the past three (3) years
–Audited Financial Statement for the past three (3) years
–Latest Interim Financial Statements
Collateral
–REM: Photocopy of the following:
• Title
• Tax Declaration
• RETR and Clearance, and
• Location Map/ Vicinity Map
–Chattel Mortgage: Evidence/Affidavit of Ownership of Existing
Machineries/ Equipment (e.g. OR/CR of vehicle)
Documentary Requirements

18. For Production Loan:
– Farm Plan and Budget
For Construction/Repairs and Renovation:
– Cost Estimates / Building Plan and Specification / Bill of
Materials and Work Program / Building Permit
For Acquisition of Machinery/Equipment
– Price Quotation of Machinery/Equipment to be acquired
Documentary Requirements

19. SPECIAL CREDIT
PROGRAMS
(Tie-ups with DA/ACPC/DAR)

20. CREDIT PROGRAMS
Agrarian Production Credit Program
(APCP)
Sikat Saka I and II Program (SSP)
Agricultural and Fisheries Financing
Program (AFFP)

21. APCP Features
Program Description Transitory program intended to provide sustainable credit
assistance and other support services to ARBs/ARB household
members through their respective organizations (or other
conduits) and eventually mainstream them to the regular lending
window of LBP after five (5) years.
Program Partners DA, ACPC, DAR and DENR
Program Duration Up to October 2020
Eligible Borrowers ARB Cooperatives and Farmers Organizations (with ARB
members)
and other conduits (i.e., coops, NGOs and RBs) with ARB
members/clients
Interest Rate STL - 8.5% p.a.; TL – 9.5% p.a.
Pass-on Rate STL - 15% p.a.; TL – 16% p.a.
Incentives to ARBOs/FOs 2% p.a., based on principal balance paid on time,
provided the required pass-on-rate is adhered to

22. SSP Features
Program Partners DA and its attached agencies (ACPC, ATI, PCIC, BSWM,
NFA, NIA)
Program Description Direct credit window and integrated support services
to small palay and corn farmers to improve the
viability of palay and corn production
Eligible Borrowers Small Palay Farmers:
•Not more than 5 hectares irrigated rice land
•Member in good standing of IA or SWISA
Small Corn Farmers:
•Not more than 5 hectares corn land
•Member in good standing of FOs endorsed by
PHILMAIZE or the Municipal Agricultural Officer in the
area
Interest Rate 15% p.a. for the first 2 crop cycles with 1% reduction
for succeeding crop cycle up to 8 cycles subject to
prompt payment of loan
Incentives to Irrigator’s Association
(IAs) and Small Water Impounding
System Association (SWISA)
0.25% or 0.50% based on the loan released paid on
time if collection rate of 90-99% or 100% is achieved,
respectively.

23. AFFP Features
Program Partners DA, ACPC
Program Description Provide credit and other support services to small farmers and fishers who
are registered in the Registry System of Basic Sectors in Agriculture (RSBSA)
either thru direct lending or thru conduits
Amount of Program Fund P 595.00 M (ACPC) /off-book
Eligible Borrowers For Direct Lending
•Non-ARB SFFs in 16 provinces
•Not covered under SSP for palay and/or corn production project.
For Conduit Lending
•APTCs/their network organizations
•Fisheries Organizations
•ARBOs
•Farmers Organizations under the Philippine Carabao Center
Interest Rate Direct lending - 15% p.a.
Conduit lending – STL-8.5%; TL-9.5%, with pass-on rate of 15% p.a. and 16%
p.a. respectively.
Incentives to service conduits 0.25% or 0.5% based on the loan released on time if collection rate of 90-
99% or 100% is achieved, respectively;

24. www.landbank.com
/landbankofficial
@LBP_Official