To maintain nationwide agricultural production, protect rural livelihoods, and fortify food resilience, the Department of Agriculture (DA) has proposed a ₱198.45-billion funding package for fiscal year 2027.
The requested allocation represents an 8 percent decrease—amounting to ₱17.25 billion—from the ₱215.69 billion authorized for the agency in 2026. Officials explained that the lower ceiling stems primarily from normalizing farm-to-market road appropriations, which dropped to ₱16 billion from the previous year’s peak of ₱33 billion. The submission is also markedly below the DA’s initial ₱260-billion proposal to the Department of Budget and Management.
Factoring in attached sector entities like the National Irrigation Administration (NIA) and the Department of Agrarian Reform (DAR), total funding across agriculture and land reform would contract from ₱297.1 billion to ₱261.74 billion.
Lower NIA appropriations account for the largest share of this drop, falling to ₱46.36 billion from ₱63.25 billion, alongside a decrease in DAR’s outlay from ₱18.16 billion to ₱16.94 billion.
Addressing the fiscal adjustments, Agriculture Secretary Francisco Tiu Laurel Jr. emphasized that the sector must stay focused on resolving long-standing issues such as high input expenses, climate vulnerability, shifting weather, and volatile market conditions.
“This is not simply an investment in agriculture. It is an investment in food security,” Tiu Laurel stated.
To soften the impact of general cutbacks and digitalization budget reductions, the agency plans to direct larger outlays toward coffee sector development, Bureau of Fisheries and Aquatic Resources initiatives, and an added ₱20-billion boost for livestock and poultry competitiveness.
Funding for the ₱10-billion Rice-for-All scheme supporting the government’s ₱20-per-kilo rice program will remain intact.
Moving forward, the DA aims to boost yield performance in agriculture and fisheries, modernize post-harvest and logistical networks, upgrade rural infrastructure, and champion new technology to help primary producers capture higher economic value.
Tiu Laurel noted that rigorous execution and strict accountability will be imperative to ensure farming stays lucrative for food producers while keeping retail staples affordable.