Expanded agri budget expected to support food security, productivity efforts as DA takes on farm road program

By Vonn Andrei E. Villamiel

THE Department of Agriculture (DA) said the P6.79-trillion 2026 national budget and its higher allocation for agriculture is expected to boost food production, rural development, and long-term food security.

In a statement, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said the budget, signed into law on Monday, heralds increased spending on infrastructure, postharvest facilities, and other forms of support for farmers, likely leading to improved productivity, less waste, and stable supply.

Mr. Laurel, however, said that the actual funding will depend on the final details of the General Appropriations Act (GAA), which he has yet to review.

“I haven’t seen the actual GAA in its entirety, so it’s difficult to comment on all the details. We’re happy that the budget has finally been released, but we still need to review what the final version entails,” he was quoted as saying in a statement.

According to the ratified appropriations bill, the DA and its agencies will receive P185.77 billion, up 20.71% from the funding proposed in the National Expenditure Program (NEP), the document prepared by the executive branch that is sent to Congress to kick off the budget legislation process.

The DA will receive a P33-billion budget for the repair, rehabilitation and construction of farm-to-market road (FMR) projects in designated key production areas, a more than doubling the P16-billion NEP allocation.

The DA is set to take over the FMR programs from the Department of Public Works and Highways (DPWH) starting next year.

The budget for the Rice Competitiveness Enhancement Fund (RCEF) has also been tripled to P30 billion, following amendments to the Rice Tariffication Law.

The RCEF, which is financed by duties on imported rice, supports farmer benefits like seed, mechanization, credit and extension services.

A P20-billion allocation will also fund the new Animal Industry Competitiveness Act, which aims to modernize the livestock, poultry, and dairy industries.

Mr. Laurel said proper scrutiny is needed to ensure funds reach farmers, fisherfolk, and other participants in the value chain. He added that public spending needs to translate into tangible benefits on the ground.

The DA said it is focusing on post-harvest support to address losses from inadequate storage and logistics.

“The 2026 budget is expected to help the sector withstand climate risks, market volatility, and supply disruptions while supporting a more competitive and sustainable Philippine agriculture,” the DA said.

While the DA welcomes the higher budget, an industry official said agriculture’s long-standing priorities like border inspection need to be addressed.

Jayson H. Cainglet, executive director of the Samahang Industriya ng Agrikultura, told BusinessWorld that border inspection facilities “have long been requested by the industry and were subsequently mandated under the Food Safety Act of 2013. Since 2019, funds have been allocated for these, but they have never materialized,” he said via Viber.

He added that farmers are also pushing for at least P50 billion in palay (unmilled rice) procurement to establish a significant government presence in the market, as well as programs that would incentivize millers to upgrade milling and other post-harvest facilities.

Mr. Cainglet said the higher budget should also be accompanied by to higher tariffs on imported rice, pork, and chicken imports, which have the potential to raise at least P50 billion in government revenue annually.