Senators on Tuesday warned of a looming agricultural crisis as the persistent surge in fuel prices driven by the Middle East conflict is pushing up fertilizer costs, potentially leading to lower crop yields and supply shortages. 

Senator Imee Marcos cautioned that rice supply may fall short as farmers already grapple with higher input costs driven by the oil crisis. Without government intervention, such as using local biofertilizers instead of resorting to imports, she said the relentless fuel price surge could directly affect agricultural produce by decreasing supply, which would inflate market prices and affect consumers' purchasing power.

“If supply is not regulated and farmers' expenses are not reduced, our food will be at risk. Strengthen local solutions like biofertilizer, [and] do not let the crisis be exploited for profit at the expense of Filipinos,” she stated in Filipino.

Smart farming practices, such as using biofertilizers to lower production costs, could help produce affordable rice. However, she alleged that there are forces within the government, particularly in Congress and the Department of Agriculture, that blocked efforts to promote biofertilizer use because they make bigger profits from expensive fertilizer imports. 

Senator Kiko Panglinan, chair of the Senate committee on agriculture and food, echoed the same concern, saying the rising costs of farming inputs such as fertilizer and feeds will be directly felt by consumers through higher food prices. 

Line agencies, such as the Departments of Agriculture and Agrarian Reform, held a dialogue with lawmakers to form an ad hoc committee to facilitate government assistance to farmers to boost food security amid the worsening crisis, according to Pangilinan.

However, he pointed out that this still has to be complemented by a supplementary budget from Congress because the administration’s funding for aid is limited and therefore not long-term.

"There is not enough budget for aid, support, and high food prices are posing problems. Our food producers are struggling," Pangilinan said in Filipino in an interview.

The proposed supplemental budget would be classified as “bayanihan-type," which refers to a special, accelerated financial appropriations patterned after the Bayanihan to Heal as One Act and the Bayanihan to Recover as One Act, both passed during the Covid-19 pandemic, to provide rapid and flexible funding to address the crisis.

Included in the proposed supplemental budget are provisions on additional interventions to ease the burden of the current crisis on Filipinos.

Initial projections by Senator Risa Hontiveros pegged the supplemental budget at P52.8 billion, covering subsidies for repatriation, transportation, and agriculture for the whole year. 

Of the amount, P2.8 billion will go to agricultural and fishery subsidies for 1.1 million small farmers and fisherfolk. 

Over the weekend, Kilusang Magbubukid ng Pilipinas lamented that successive big-time oil price spikes are driving up the costs of pesticides and fertilizers, with urea surging to P2,200 to P2,400 per 50-kilogram bag, and complete fertilizer rising to approximately P2,100 from the initial P1,600 to P1,750, affecting the production chain.

The DA projected that rice prices will spike by August if fuel prices remain elevated due to the global oil disruption caused by the ongoing United States-Israel war on Iran.

Meanwhile, earlier this month, Samahan ng Industriya ng Agrikultura or SINAG lamented that the spike in pump prices is being “absorbed” solely by fisherfolk, who use 30 to 50 liters of fuel per trip.

The group warned that any subsequent oil price hike, without quick government intervention, may force fishermen to stop fishing, leading to a drop in production and a supply shortage.