Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

16" Congress
First Regular Session

House Bill Nol 7.

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
735 milion 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 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
anf 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 channelled 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 problems of inadequacies, and
inaccessibility of financial support by redirecting the Bank's focus towards an institutionalize and
strengthened credit, guarantee and insurance support to where it is needed most.

Congress’ moves at existing 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.

This measure was filed before the 15” Congress AS House bill 5541 and has hurdled
Committee deliberation. This bill remains relevant and important in providing for greater
accessibility to financial support for small farmers, and fisher folk, their organizations and
associations.

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

AGAPITO H/GUANLAO


Republic of the Philippines
HOUSE OF REPRESENTATIVES:
Quezon City

16" Congress
First Regular Session

34
House Bill No__ 47.4.

Introduced by
HON. AGAPITO H. GUANLAO

AN ACT STRENGTHENING AND INSTITUTIONALIZING CREDIT, GUARANTEE AND.
INSURANCE SUPORT OF THE LAND BANK OF THE PHILIPPINES TO AGRARIAN
REFORM BENEFICIARIES, SMALL FARMERS AND FISHERFOLK, AMENDING FOR THE
PURPOSE, CHAPTER IV OF REPUBLIC ACT 3844 ASLO KNOWN AS 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 “Bank”, 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 PERCENT (50%) OF ITS NET EARNINGS FOR CREDIT, GUARANTEE AND INSURANCE
SUPPORT TO AGRARIAN REFORM BENEFICIARIES, SMALL FARMERS, FISHER FOLK
AND FARM WORKERS THROUGH THEIR ORGANIZATION AND COOPERATIVES.]

(a) [PURSUANT TO THIS, THE LAND BANK OF THE PHILIPPINES SHALL CREATE
A SPECIAL WINDOW SOLELY FOR AGRARIAN BENEFICIARIES, SMALL
FARMERS, AND FISHERFOLK TO CATER THE NEEDS OF THE SAME AT
RATES THAT WILL NOT EXCEED 9 PERCENT.)

SECTION 2. Chapter IV, Section 75, entitled, Power 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, COOPERATIVVES AND COOPERATIVE
BANKS IN QUANTITIES TO BE DETERMINED BY THE BOARD OF TRUSTEES AND
UNDERTAKEN CONSISTENT WITH THE LAWS OF 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: