DA seeks P30 billion supplemental boost to avert food crisis

The Department of Agriculture (DA) is urgently calling for a P30 billion supplemental budget from the national government to safeguard domestic food production as global market volatility threatens the country’s agricultural stability.

This request represents a significant escalation of the government's intervention strategy, moving beyond the current P10 billion Presidential Assistance for Farmers and Fisherfolk Program (PAFFP), to address the soaring costs of essential farm inputs.

Agriculture Secretary Francisco Tiu Laurel Jr. underscored the gravity of the situation, noting that the global price of urea fertilizer has spiked to $800 per ton, a 100% increase driven by escalating Middle East tensions and shipping disruptions.

“The situation is critical; our farmers are being squeezed by costs they simply cannot afford,” Laurel stated.

The proposed P30 billion package is strategically split to cover two critical fronts of the agricultural sector.

P20 billion is earmarked specifically for farm input subsidies, with a primary focus on lowering the cost of fertilizers to prevent a sharp decline in crop yields.

The remaining P10 billion is intended to bolster the fisheries sector, providing fuel and gear support to ensure that local fishers can remain at sea despite rising diesel prices.

DA officials emphasize that this proactive funding is a "production shield" meant to ensure that Filipino consumers are not met with empty shelves or hyper-inflated food prices in the coming months.

“We need to act now to protect our production base before the damage becomes irreversible,” a department spokesperson added.

This call for additional funding comes at a sensitive time, as the National Rice Program recently adjusted its production forecast downward from 20.8 million metric tons to 19.8 million MT.

Assistant Secretary Arnel De Mesa warned that if fertilizer remains unaffordable, the country could see a "worst-case scenario" featuring a 20% drop in palay output.

“We are looking at a potential shortfall that could significantly impact our self-sufficiency targets,” De Mesa warned.

To prevent this, the DA is already exploring emergency measures, including tapping the Quick Response Fund (QRF) and negotiating direct, lower-cost fertilizer shipments from diplomatic partners such as India, Russia, and Belarus.