Philippine agriculture posts strongest growth in eight years, says Tiu Laurel

Philippine agriculture is in a stronger position this year after posting its highest growth in eight years, Agriculture Secretary Francisco Tiu Laurel Jr. said Monday, although sustaining momentum will require continued investment, policy reforms, and favorable weather.

Speaking during the induction of new officers of the Economic Journalists Association of the Philippines, Tiu Laurel said the sector’s 3.1 percent growth in 2025 reflected the early impact of recent reforms, despite major challenges, including 23 storms last year, 22 of which struck during the second half of the year, a critical harvest period.

Export performance also rebounded, driven by a recovery in banana shipments and rising demand for other tropical fruits. Philippine avocados entered the Japanese market for the first time, while durian gained access to new destinations. Domestically, onion prices stabilized after years of volatility.

“These are early gains from a longer and deliberate reset of the sector,” Tiu Laurel said, noting that reforms accelerated after President Ferdinand Marcos Jr. assumed leadership of the Department of Agriculture in 2022.

At the core of the strategy is making agriculture a profitable and sustainable livelihood.

“Farmers and fisherfolk must be profitable, agriculture must reclaim its role as a serious economic driver, and the sector must build hope and futures that draw in a new generation because opportunity is real,” he said.

The administration allocated one of the largest recent budgets for agriculture in 2026, channeling funds to farm-to-market roads, warehouses, food hubs, post-harvest facilities, dryers, and a national command center aimed at improving sector-wide coordination.

“These are not headline investments. They are long-game investments, and they matter,” Tiu Laurel said.

Still, he acknowledged that current spending remains insufficient to fully address structural weaknesses. The DA estimates the sector needs P400 billion to P500 billion annually, sustained over two administrations, to reverse decades of underinvestment, rebuild institutions such as the National Food Authority, and strengthen resilience against external shocks.

Near-term measures have already helped moderate food prices. Rice prices declined in 2025, easing inflation and supporting interest-rate cuts. Programs such as Benteng Bigas, Meron Na have reached all 82 provinces and more than two million Filipinos by sourcing rice directly from local farmers. Cold storage projects and food hubs have also moved from planning to construction, helping reduce post-harvest losses.

Tiu Laurel said historical trends point to cautious optimism. In eight of the past 20 years, agricultural growth exceeded 3 percent, peaking at 5.4 percent in 2007.

“If the weather cooperates, pests behave, vaccines arrive, laws move, and exports expand, there is reason to believe that 2026 could become the ninth,” he said.

Still, he stressed that sustaining growth hinges on making agriculture a viable investment sector capable of retaining the next generation of farmers and fishers.