LandBank, however, recognizes that agricultural credit or financial assistance per se is not the answer to improving the farmer’s productivity or income unless his ability to pay improves. It was this that prompted LandBank to create a corporate body to assist farmers in the field of agricultural development.
The LandBank thus conceived the Masaganang Sakahan, Inc. (or MSI) in the latter part of 1974, which started operations in July 1975.
At the start of MSI operation, LBP directed MSI to undertake developmental and pioneering types of facilities and services that would boost farmers productivityand income.
To name some of MSI endeavors that have been successful are as follows:
Rice Trading The project deals with MSI distributing cavans of rice to its government and private institutional clients. The rice supply came from MSI managed Projects.
Estate Management Project The project involved the collection of land and loan amortizations, either in cash or in kind or both, from the farmer-beneficiaries of LBP, who acquired their agricultural lands thru the bank’s Operations Land Transfer Program. The farmer-beneficiaries serviced by MSI included palay and corn farmers, whose payments in kind were subsequently monetized/converted to cash under the company’s trading operations.
Cattle Marketing Project The project involved the provision of stocks fattening and breeding to cooperatives and small and medium feedlot operators sourced locally and imported and marketing assistance through PIK and market matching.