Land Bank of the Philippines (Land Bank) has raised its lending to small farmers and fisherfolk by a hefty 25 percent last year, giving away P29.5 billion in loans through its institutional conduits.

Land Bank president and chief executive officer (CEO) Gilda E. Pico said the bank only aimed to lend P25 billion but the economic crisis that hit Wall Street and swamped major banks and various countries in September 2008 compelled the bank to expand its lending operations.

All told, Pico said, the lending figure last year was 25 percent higher than the P23.5 billion released in 2008.

Lending for palay production actually surged by 33.3 percent to P12.4 billion from the P9.3 billion extended in 2008 and assisted a total of 145,000 farmers nationwide.

The high figure shows that farmers have been hit by the rise in fuel prices and the increase in the cost of inputs from 2008 onwards, making Land Bank a key player in nurturing agricultural production.

Nonetheless, the high credit figure did not lead to any noticeable increase in output as the country reeled from the effects of two successive typhoons that battered 43 palay-producing provinces.

“In 2009, we intensified our credit assistance to small farmers and fisherfolk to help them cope with the economic challenges, including natural calamities that hit the country,” she stressed.

Pico said Land Bank does not lend to individual farmers and fishermen but extends credit through institutions like cooperatives and rural financial institutions.

Last year, Land Bank coursed its lending through 1,054 farmers and fisherfolk cooperatives and 393 rural financial institutions nationwide.

More than 487,000 small farmers and fisherfolk benefited from the bank’s credit facilities last year.

For crop production alone, the bank lent P15.9 billion last year, up from the P10.2 billion in 2008. It meant an increase of P5.7 billion or 56 percent higher than the P10.2 billion recorded in 2008.

Lending for livestock also increased significantly by 41 percent to P3.1 billion from P2.2 billion.

Other economic activities financed by Land Bank are fisheries, agricultural services, marketing loans, fixed assets, and processing-manufacturing.

Regions with the highest loan releases to small farmers and fisherfolk are Central Luzon, with P7 billion, followed by Cagayan Valley with P4 billion and Central Visayas with P2.7 billion.