Published May 26, 2021, 4:14 PM
In a bid to entice more borrowers from the agriculture sector, Bank of the Philippines (BPI) has opened a loan program to small and medium enterprises (SME) with no collateral and fewer documentary requirements.
BPI Business Banking Head Eric Luchangco said in a statement that the Ayala-led bank is looking to increase its presence in the area of agricultural enterprises, in recognition of agripreneurs as essential drivers to economic resilience and recovery.
“To reduce the hurdles of agripreneurs and to remain relevant to the Philippine economy, we had to increase our presence in this base,” said Luchangco.
Historically, as countries have industrialized, the number of small farms has dwindled, with workers opting for city life. But the Philippines government is concerned that this trend could exacerbate food insecurity in an import-dependent country already struggling to meet current food demand.
“The average age of the Filipino farmer is 57. Assuming an average life span of 70, we might reach a critical [shortage] of farmers in just 15 years,” said Asterio Saliot, director of the Department of Agriculture - Agricultural Training Institute (DA-ATI).
“The average level of education of a farmer is grade five only,” he added.
According to Saliot, farmers’ age and limited education make them less receptive to new farming technologies that can boost yields in the face of growing losses from volatile weather.