LANDBANK, Isabela town partner to provide market support to palay farmers

August 27, 2021

Alicia Mayor Joel Amos P. Alejandro (center) inspects the municipal government’s purchase of palay directly from local farmers at premium prices, with support from a P65-million loan under LANDBANK’s Palay at Mais ng Lalawigan Lending Program, which helped stabilize the local prices of palay and provided a ready and steady market for farmers’ produce.

ALICIA, Isabela – Situated in the “Queen Province of the North,” the Municipality of Alicia is surrounded with vast tracts of rich agricultural lands planted mostly to palay and corn. Having the largest irrigated rice fields in the region, Alicia is considered the largest rice producer in Cagayan Valley.

The COVID-19 pandemic, however, affected market conditions for these farmers, as health and safety lockdowns limited the movement of buyers, traders, and produce.

To address this growing concern, the municipal government decided to pursue high-impact projects to help boost the productivity of its more than 1,000 farmers and ensure local food security.

This led the administration of Alicia Mayor Joel Amos P. Alejandro to partner with local farmers’ cooperatives and associations to directly purchase the palay produced by local farmers at premium prices.

Through the assistance of Land Bank of the Philippines (LANDBANK), the Alicia LGU applied for a P65-million credit facility for a Permanent Working Capital (PWC) under the Bank’s Palay at Mais ng Lalawigan Lending Program.

Through the Program, the Alicia LGU buys palay at an indicative subsidized price of P15.00 to P16.00 per kilogram for wet palay, and P19.00 per kilogram for dry palay. This helped stabilize the prices of palay in Alicia, while providing a steady market for farmers’ produce.

The LGU, in turn, sells the procured palay processed into milled rice in public markets and other government institutions, such as government hospitals, jails, and other entities. The LGU also signed lease contracts with millers and warehouse owners to set up a streamlined rice milling arrangement in the area.

Moreover, the Program supported the LGU’s initiatives to deliver rice subsidies to indigent residents of Alicia, particularly when the area was placed under Enhanced Community Quarantine (ECQ) to stem the spread of COVID-19 infections.

“Ako ay nagpapasalamat sa LANDBANK dahil sa kanilang programa para sa aming local farmers. Malaking tulong ito para sa aming munisipyo. I am also proud to note that we are the first LGU that availed and implemented this Program, which has so far proven to be successful. We are counting on LANDBANK to support our plans in expanding this program so that we may be able to support more palay farmers in Alicia,” Mayor Alejandro said.

Initially launched by LANDBANK and the Department of Agriculture (DA) in 2019 as the “PAlay aLAY sa Magsasaka ng Lalawigan,” the Program aims to provide a credit facility to Municipal, City, and Provincial LGUs to purchase palay produced by local farmers whose incomes have been affected by the drop in the farm gate price of palay. The Program has since been expanded in 2020 to cover the purchase of corn, in support of Republic Act No. 11494 or the Bayanihan to Recover as One Act.

“We are closely working with local government partners to meet the production requirements of farmers and help ensure food security especially during this ongoing pandemic. We are thus encouraging more LGUs, especially those in rice and corn producing communities, to avail of the LANDBANK Palay at Mais ng Lalawigan Program to support our local farmers,” said LANDBANK President and CEO Cecilia C. Borromeo.

The P10-billion funded facility is LANDBANK’s response to the National Government’s call to support the livelihood of local farmers, who can sell their palay and corn to their LGUs at a fair price rather than to unscrupulous rice traders who offer very low prices.

Additionally, LGUs may avail of farm machineries and equipment for post-harvest facilities to support their rice and corn-related activities. As of July 2021, LANDBANK has approved loans for the Program amounting to P3.85 billion for eight (8) LGUs.

As of July 31, 2021, LANDBANK has extended a total of P21 billion in outstanding loans to support the agri-aqua projects of LGUs nationwide.

Interested borrowers of the LANDBANK Palay at Mais ng Lalawigan Lending Program may contact the nearest open LANDBANK Lending Center or Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.

For more updates, please follow the official LANDBANK Facebook, Instagram and YouTube accounts (@landbankofficial), and Twitter (@LBP_Official); join our Viber community (@LANDBANK); or visit the LANDBANK website (

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