Agriculture spending refocused on reducing poverty, stabilizing supply

THE Department of Agriculture (DA) said it is recalibrating its spending with a shift away from “fragmented, input-driven” programs toward a results-based framework aimed at raising farmer income and minimizing supply shocks.

Speaking at the Big Bold Reform forum organized by the Department of Finance and the Bangko Sentral ng Pilipinas, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said decades of government spending have failed to significantly improve rural incomes or stabilize food supply, prompting the administration to rethink the economics of Philippine agriculture.

“Despite sustained public spending, outcomes on the ground remain fixed… Productivity gains have been uneven, farmer incomes remain low, and food supply shocks continue to affect consumers,” he was quoted as saying in a statement.

The DA said its new approach will focus on investing in poor areas with weak productivity and strong production potential.

The DA is also moving away from rice-centric policies and expanding support for fisheries, livestock, and high-value crops to diversify farm incomes and reduce vulnerability to weather and market disruption.

Mr. Laurel said the department will also promote transparency and accountability across the project cycle, including open access to program information and formal feedback mechanisms for farmers and fisherfolk.

“Effective policies are not only about what we implement, but how transparently and accountable we do so,” Mr. Laurel said.

The DA said it is allocating P33 billion for logistics and post-harvest infrastructure, including farm-to-market roads, cold storage facilities, agricultural food hubs, ports, and processing facilities.

Mr. Laurel said investments in agricultural infrastructure will help address the “missing middle” in farm value chains. — Vonn Andrei E. Villamiel