MANILA — The World Bank has approved a USD1-billion financing package to help transform the Philippines’ agriculture sector by boosting farm productivity, strengthening climate resilience, and improving food systems nationwide.
The funding will support the Philippines Sustainable Agricultural Transformation Project (PSAT), which aims to implement wide-ranging reforms that will modernize the country’s agrifood systems and improve the livelihoods of millions of farmers.
The international lender announced Saturday that the project was formally approved by its Board of Executive Directors.
The initiative is expected to benefit at least five million Filipino farmers, while also enhancing food security and promoting job creation in rural communities.
World Bank Division Director for the Philippines, Malaysia and Brunei Zafer Mustafaoğlu described the program as a major step toward strengthening the country’s agricultural sector.
According to him, strengthening agricultural policies and investing in more efficient farming systems will help Filipino farmers increase their earnings while also making the sector more resilient to climate-related risks.
Among the measures under the program is the adoption of climate-smart farming techniques, including improved crop varieties, better nutrient management, water-efficient technologies, and methods that reduce greenhouse-gas emissions in agricultural production.
The project will also prioritize reducing post-harvest losses, which often result from inadequate storage, transport, and processing facilities.
In addition, the initiative aims to help farmers expand into high-value crops and export-oriented agricultural products by improving access to certification laboratories and strengthening market linkages.
Efforts to modernize the sector will also include upgrades in agricultural logistics and improved distribution systems to ensure farm products reach markets more efficiently.
A digital voucher system will also be introduced to make the delivery of agricultural inputs faster and more transparent, while ensuring government spending leads to measurable improvements in crop yields and farm incomes.
Meanwhile, the project will assist the Department of Agriculture in strengthening its institutional capacity, particularly in areas such as budgeting, procurement, and agricultural data systems.
World Bank Senior Agriculture Specialist Mio Takada said the program aims to produce measurable improvements in productivity, climate resilience, and farmer incomes.
By improving seeds, mechanization, fertilizer efficiency, and crop diversification, the initiative is expected to raise agricultural output while reducing losses and supporting the growth of the country’s agrifood exports.
The financing will be implemented under the World Bank’s Program-for-Results mechanism, which ties the release of funds to the achievement of specific development milestones set by the Philippine government.
ia/xf
