Agriculture finance empowers farmers to improve their productivity and income while supporting them to contribute to economic growth and poverty reduction in the country.
The Agri-Agra Reform Act, or RA 1000, institutionalizes a more responsive approach to the financial needs of farmers and fisherfolk in the country by laying out standards to boost credit services.
A study conducted by Fair Finance Asia Philippines reveals, however, that the compliance rates of banks continue to fall short of the lending quota required.The Land Bank of the Philippines (LBP) fared low in terms of bank policies based on the Fair Finance Guide International (FFGI) methodology. Despite the Philippines being one of the most climate-vulnerable nations, the bank only scored a 2 out of 10 for its climate policy.
The study emphasizes how important it is to expand the ways in which banks, specially the LBP, can satisfy the required standards outlined in RA 1000 to increase lending to the agricultural sector.
