The Department of Agriculture (DA) is earmarking up to P40 million for each village-based animal feeds project, aimed at lowering livestock production costs, boosting corn and livestock output, and supporting rural incomes.

Agriculture Secretary Francisco P. Tiu Laurel Jr. said on Sunday that he approved the Village-Type Feed Complete Chain Project (VFCCP) under Memorandum Circular No. 2.

The program allows farmer cooperatives to manage corn production, postharvest processing, feed milling, and total mixed ration preparation in a single, community-run operation.

“This is about fixing the weakest link in livestock production — feeds — by putting control back in the hands of farmers,” Tiu Laurel said. “When communities can grow, process, and mill their own animal feeds, we lower costs, raise productivity, and make our food system more resilient.”

Each VFCCP site will be managed by an accredited farmers’ cooperative overseeing up to 25 hectares of corn and forage.

The program combines climate-resilient technologies — such as solar-powered irrigation, biomass dryers, and mechanized forage production — to ensure a year-round feed supply and reduce dependence on imports.

Initial funding will cover up to 70 percent of project costs for machinery, infrastructure, agricultural inputs, and training, with indicative allocations of P20 million for equipment and P8.5 million for structures.

Future allocations will be included in the regular budget to sustain operations.

Tiu Laurel said the model is designed to address a long-standing challenge in livestock production: limited access to affordable, high-quality feed, which has historically reduced animal productivity, caused seasonal feeding disruptions, and weakened the competitiveness of smallholder raisers.

Financial projections indicate commercial viability, with a typical enterprise generating annual revenues of P38.9 million against P30.7 million in operating costs, yielding a net cash flow of P8.2 million, a projected internal rate of return of 23 percent, and a benefit-cost ratio of 1:11.

Revenues from feed sales will be reinvested, while partnerships with local governments, Kadiwa outlets, and private buyers are expected to expand market access and strengthen community-driven livestock enterprises.