DA seeks P40B amid oil crisis

Rising fuel costs are forcing the government to consider a substantial increase in support for the agriculture sector, with losses projected to reach as much as 20 percent of output if no further intervention is made.

The Department of Agriculture (DA) earlier warned that this could translate to about two million metric tons in reduced production, as higher oil prices continue to drive up farm inputs and transport costs.

Financial assistance rolled out

To cushion the impact, the agency has begun rolling out financial assistance. Around 14,400 farmers have received P5,000 each in fuel subsidies, while 15,669 fisherfolk were given P3,000.

Distribution of the P10-billion Presidential Assistance to Farmers and Fishermen is also underway, with more than four million beneficiaries expected to receive about P2,325 each.

Not enough

Despite these measures, Agriculture Secretary Francisco Tiu Laurel Jr. said current resources may not be enough if the oil crisis persists.

“That’s all our money… but we can provide the additional money we’re asking for if we have the funds,” he said in Filipino.

He said the DA may require up to P40 billion in additional funding to sustain support programs and prevent further strain on food production.

Most of the proposed allocation — around P30 billion — would go to farmers, particularly for fertilizers, seeds, and other critical inputs. The remaining P10 billion is intended to support fisherfolk, who are also heavily affected by fuel price increases.

“Currently, our fertilizer fund, is only half, so we need to make that P20 billion, plus the seeds, plus the others. So we need an additional P20 billion maybe just for rice farmers, plus the others so totally P30 billion plus P10 billion for fisherfolk,” he explained.

The agriculture chief said the additional funding is crucial to maintain output levels and stabilize food supply, as continued volatility in global oil prices threatens to disrupt the country’s production systems.