DA vows to fix 'broken economics' of agriculture

The Department of Agriculture (DA) is seeking to fix what it describes as the “broken economics” of Philippine agriculture.

Speaking at the Big Bold Reforms forum on Friday, 16 January, Agriculture Secretary Francisco P. Tiu Laurel Jr. said high rural poverty, uneven productivity, and recurring food supply shocks remain persistent challenges the sector must confront.

“Despite sustained public spending, outcomes on the ground remain fixed,” he said. “Productivity gains have been uneven, farmer incomes remain low, and food supply shocks continue to affect consumers.”

Tiu Laurel stressed that the problem is not a lack of government effort, but how resources are deployed. “These challenge points [are] not a lack of effort, but the need for better targeting, stronger governance, and more coordinated execution,” he said, adding that the DA is shifting “from fragmented and input-focused interventions to a coherent, impact-oriented, and result-driven reform agenda.”

The agriculture chief outlined several reforms aimed at addressing these bottlenecks. The first is sharper targeting of public investments toward areas with high poverty incidence, strong production potential, and low productivity.

“Basically, where the returns to interventions are the highest—parang negosyo,” Tiu Laurel said, signaling a more commercial mindset in farm spending.

The second reform addresses the government’s traditionally rice-centric approach. While rice remains vital, Tiu Laurel said the DA will pursue a more balanced commodity strategy by expanding support for fisheries, sugar, coconut, corn, livestock, and high-value crops to diversify income sources and reduce vulnerability to supply shocks.

Tiu Laurel emphasized that such reforms will not succeed without stronger governance. He said the DA has begun institutionalizing transparency, accountability, and participatory governance throughout the entire project cycle.

“Effective policies [are] not only about what we implement, but how transparently and accountable we do so,” he said, citing open access to program information and structured feedback mechanisms for farmers and fisherfolk.

The Big Bold Reforms forum brought together key figures from both the public and private sectors to strengthen domestic collaboration and help restore investor confidence following the economic slowdown in 2025.

Cabinet officials, including Tiu Laurel, along with heads of government agencies, provided business leaders with concrete updates on the economy, reform priorities, and strategic initiatives aimed at supporting inclusive and resilient growth in the year ahead.