Of the P17.4 trillion total loans granted by both government and private banks in 2005, three percent was taken up by the agriculture sector.

While this accounts for a still negligible three percent of total lending, this was a significant 12 percent growth, the Agricultural Credit Policy Council (ACPC) reported.

Loans for actual agricultural production totaled to P190 billion or 1.09 percent of total loans releases, a 13 percent increase from P168 billion in 2004. More than 50 percent of this lending came from private commercial banks which lent a total of P112.7 billion, an eight percent increase from P104.2 billion in 2004.

After the commercial banks, rural banks lent the second biggest amount to the agricultural sector, although this is just one-third of commercial banks’ loans at P37.7 billion. However, rural banking loan still represents 20 percent of total agricultural production loans in 2005 which grew by an important 16 percent from P32.5 billion loan release in 2004.

Thrift banks are the third biggest lenders to the farming sector with total loans of P25.2 billion which expanded by 23 percent from P20.5 billion in 2040.

Sadly, Land Bank of the Philippines and the Development Bank of the Philippines, two of the largest government banks perceived to have immense exposure in the agriculture sector only released a combined total of P14.5 billion for agricultural production. This, however, is up by 34 percent from P10.8 billion in 2004.

Bangko SEntral ng Pilipinas records show that P190 billion of agricultural production loans was spent for basic food crops (rice, corn) for which P117.9 billion was released, increasing by 13.7 percent from P103.7 billion in 2004.

Food crop loans included those for the fisheries sector, P53.9 billion; livestock and poultry, P39 billion; palay, P14.4 billion; and fruits and vegetables, P6.3 billion.

Also receiving a significant loan amount was export and commercial crops, P19.8 billion a major part of which was spent for planting sugarcane, P13.2 billion; coconut P4.5 billion, and coffee and cacao (cocoa), P1.4 billion.