AID TO HOG INDUSTRY. Agriculture Secretary William Dar (center) and LandBank president and CEO Cecilia Borromeo (right) lead the signing of a memorandum of agreement for the PHP15-billion lending program for the swine industry on Wednesday (March 17, 2021). Also in photo is Agriculture Undersecretary William Medrano. (Screengrab)
MANILA – The Department of Agriculture (DA) and Land Bank of the Philippines on Wednesday officially signed a memorandum of agreement for the PHP15-billion lending program for the swine industry.
“LandBank is supporting the DA by extending financing support to hog enterprises to sustain their operations and pork supply during this difficult time. Through the LandBank SWINE Lending Program, we aim to respond to the recovery requirements of our hog industry and contribute to ensuring food security,” LandBank president and CEO Cecilia Borromeo said during the launch and signing ceremony.
The LandBank SWINE (Special Window and Interim Support to Nurture Hog Enterprises) Lending Program will be available for commercial hog raisers registered as cooperatives or farmers’ associations, small and medium enterprises (SMEs), and large enterprises or corporations.
During his presentation, DA Undersecretary for Livestock William Medrano said the loans under the program shall be utilized for swine production, which includes the acquisition or importation of semen or breeding animals; feed milling operations; the construction, improvement or retrofitting of necessary facilities that are compliant to biosecurity protocols of DA, the industry or integrators; acquisition of fixed assets; and as working capital.
"Eligible borrowers may avail of a short-term loan line or a term loan for up to 80 percent of their total project cost or financing requirement, with an affordable fixed interest rate of 3 percent per annum for three years, subject to annual repricing thereafter," he said.
Under the program, short-term loans have a tenor of one year, term loan for permanent working capital is payable up to five years, while fixed asset acquisition is payable based on the cash flow or payback period of the project, with grace period on the principal and interest.
Agriculture Secretary William Dar and Borromeo led the MOA signing to formalize the joint implementation of the SWINE Lending Program.
Medrano also said LandBank SWINE lending program is part of DA's recovery program for 2021-2023, Integrated National Swine Production Initiatives for Recovery and Expansion (INSPIRE) Program which has an initial allotment of PHP400 million for the sentinel pigs or test pigs to see if ASF is still present in the previously affected area, the repopulation itself, and enhancement of biosecurity.
LandBank and the Development Bank of the Philippines (DBP) have partnered for this program.
While LandBank has allocated PHP15 billion loan for commercial hog raisers, DBP promised PHP12 billion. (PNA)
