Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

15" CONGRESS
2" Regular Session

559.

Introduced by: HON. AGAPITO H. GUANLAO

EXPLANATORY NOTE

According to its 2010 annual report, “the Land Bank of the Philippines continued to post
higher profits with net income reaching P7.2 billion for the first nine months of the year, 12
percent or P735 million higher than the P6.4 billion registered for the same period last year.”

Much is left to be desired despite this reported “growth”.

By their own account, LANDBANK's total assets grew 12 percent to P591 billion from P527
billion in September 2010 with a 15 percent expansion of deposits to P460 billion from P399
billion of the same period last year. Capital increased to P66 billion from P60 billion in
September 2010.

Despite these, their own records show that the bank's credit facility reached only about
661,000 small farmers and fisher folk nationwide. This is a far-cry from the total number of
small farmers and fisher folk in the country estimated at about 5.69 million in 2003 alone
(ACPC Monitor June 2003). Moreover, the bank's latest report reveals that loans were
channeled roughly to only about 4.435% of the country’s more than 20,000 cooperatives.

The upward movement however of the bank’s assets is indicative of its viability and capability
to expand and deepen support to the small farming and fishing sectors to enable them to rise
above poverty.

‘This measure is deemed as a more sustainable solution to the perennial problems of
inadequacies, and inaccessibility of financial support by redirecting the Bank's focus towards
an institutionalized and strengthened credit, guarantee and insurance support to where it is.
needed most.

Congress’ moves at extending the Bank's life as it expires on August 2013 offers a great
‘opportunity to revisit and re-direct its focus towards more strengthened support to agrarian
reform beneficiaries, small farmers and fisher folk which requires the amendment of the
Bank's mandate.

Thus, the passage of this piece of legislation is earnestly sought.

REP. ITO H.)JGUANLAO
Butil Faymers Pay


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

* CONGRESS
2 Regular Session
83

Introduced by: HON. AGAPITO H. GUANLAO

AN ACT STRENGTHENING AND INSTITUTIONALIZING CREDIT, GUARANTEE AND
INSURANCE SUPPORT OF THE LAND BANK OF THE PHILIPPINES TO AGRARIAN
‘ORM BENEFICIARIES, SMALL FARMERS AND FISHERFOLK, AMENDING FOR
THE PURPOSE, CHAPTER IV OF REPUBLIC ACT 3844 ALSO KNOWN A$ THE
AGRICULTURAL LAND REFORM CODE.

Be it enacted in Congress assembled, the following amendments to Chapter IV of Republic Act
3844 also known as the Agricultural Land Reform Code;

SECTION 1. Chapter IV, Section 74 to read as follows:

Section 74. Creation - To finance the acquisition by the Government of landed estates for
division and resale to small landholders, as well as the purchase of the landholding by the
agricultural lessee from the landowner, there is hereby established a body corporate to be
known as the ‘Land Bank of the Philippines’, hereinafter called the "Banke’, which shall have
its principal place of business in Manila. The legal existence of the Bank shall be for a period of
fifty years counting from the date of the approval hereof. The Bank shall be subject to such
rules and regulations as the Central Bank may from time to time promulgate [AND, TO
ALLOCATE, 50 (CENT (50%) OF ITS NET EARNINGS FOR CREDIT, GUARANTEE
AND INSURANCE SUPPORT TO AGRARIAN REFORM BENEFICIARIES, SMALL
FARMERS, FISHER FOLK AND FARM WORKERS THROUGH THEIR
ORGANIZATIONS AND COOPERATIVES.)

(a) [PURSUANT TO THIS, THE LAND BANK OF THE PHILIPPINES SHALL
CREATE A WINDOW SOLELY FOR AGRARIAN REFORM BENEFICIARIES,
SMALL FARMERS, AND FISHERFOLK TO CATER TO THE NEEDS OF THE
SAME.)

SECTION 2. Chapter IV, Section 75, entitled, Powers in General, add...

(7) [TO OFFER AND ISSUE COMMON AND PREFERRED SHARES OF STOCKS
TO AGRARIAN REFORM BENEFICIARIES, SMALL FARMERS AND FISHER
FOLK THROUGH THEIR ORGANIZATIONS, COOPERATIVES AND
COOPERATIVE BANKS IN QUANTITIES TO BE DETERMINED BY THE
BOARD OF TRUSTEES AND UNDERTAKEN CONSISTENT WITH THE LAWS
OF THE BANGKO SENTRAL NG PILIPINAS.]

SECTION 3. This Act shall take effect fifteen (15) days after publication in at least two (2)
newspapers of general circulation.

Approved: