Bankcorrupt: an assessment of the role and performance of Land Bank as the financial arm of agrarian reform

Abstract

The Land Bank of the Philippines acts as the financial arm of agrarian reform. This paper has assessed the role of Land Bank of the Philippines, a government-owned bank, in light of the recent development in the Philippine financial market. Amortization has become the core feature of land reform in the country since the enactment of the Comprehensive Agrarian Reform Program while landowners' compensation (LOC) is a major cost item specifically as land reform shifted from a confiscatory scheme to market land valuation. This paper has examined how much of a burden has amortization become to beneficiaries of the program. The study gave emphasis on how landlords have benefited from the CARP through the Land Bank. The design of CARP allows Agrarian Reform Beneficiaries to have access to institutional credit through the LBP. In spite of this, ARBs remain poor and underdeveloped. The paper discussed the adverse effects brought about by screwed land policy and poor land administration on attaining the objectives of genuine agrarian reform and the part of the Land Bank on such failure. A survey of 150 farmer beneficiaries from Central Luzon was conducted. The survey answers reflected the economic profile of Agrarian Reform Beneficiaries and their stance on the program. The study was able to conclude that beneficiaries of CARP have not seen their life improved even after inclusion to the program. This paper calls for a genuine agrarian reform program that would free farmers from their bondage of poverty.