The World Bank has approved a $1 billion loan to support the Philippines Sustainable Agricultural Transformation Project (PSAT), a sweeping initiative aimed at modernizing the country’s agrifood systems, boosting productivity, and strengthening climate resilience.
Announced Saturday, the funding will back sector-wide reforms expected to benefit at least five million Filipino farmers.
“This is a transformative investment in Philippine agriculture,” said Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia, and Brunei.
“By putting in place the right policies, systems, and partnerships, these projects will make agriculture more productive, competitive, and climate smart. Farmers will be better equipped to earn more, withstand climate shocks, and bring safer, more affordable food to Filipino households.”
PSAT will introduce climate-smart practices such as improved seed and nutrient management, water-saving techniques, greenhouse-gas reduction, and post-harvest loss prevention.
It will also promote diversification, expand agrifood exports by improving access to high-value crops and certification labs, and modernize logistics and market systems.
A digital voucher system will be rolled out to deliver farm inputs more quickly and transparently, linking public spending to measurable gains in yields and incomes.
The project also includes reforms to strengthen the Department of Agriculture’s budgeting, data management, and procurement processes.
World Bank Senior Agriculture Specialist Mio Takada said the initiative will deliver “tangible benefits for farmers and consumers alike,” citing higher incomes from better seeds, mechanization, efficient fertilizer use, diversification, improved climate resilience, reduced post-harvest losses, and stronger agrifood exports.
The loan is structured as a Program-for-Results operation, meaning disbursements will be tied directly to the achievement of specific, pre-agreed outcomes.