In a bid to ensure more efficient use of taxpayer money, Agriculture Secretary Francisco Tiu Laurel Jr. announced the agency’s new focus on projects that offer an internal rate of return (IRR) of 12 to 14 percent per year and a payback period of no more than seven years. This approach to budgeting and operations marks a shift towards prioritizing investments that are both bankable and profitable, with non-investment-grade projects to be deprioritized, regardless of their agricultural viability.
In a statement released on Sunday, Tiu Laurel explained that underperforming projects, such as a recent mushroom farming proposal that would have taken over a decade to recover, were no longer deemed viable. “We don’t have infinite resources, and we can’t afford to waste them,” he emphasized, pointing out that an 8 percent return on investment would take 12 years to recoup—an unacceptable scenario from a business perspective.
This new strategy underlines the DA’s commitment to efficiency in resource allocation, ensuring that high-return projects take precedence in order to maximize the impact on farmers and the industry. Although the agency has not yet identified specific projects, the direction is clear: investments will be made only in those that meet clear financial criteria.
Tiu Laurel also hinted at a shift away from the traditional “one town, one product” approach, advocating instead for a diversified strategy that incorporates multiple key commodities. This would protect towns from overreliance on a single crop, providing a buffer in times of economic downturn or market volatility. However, he cautioned against excessive diversification, warning that too many crops could result in inefficiency.
As part of the broader focus on sustainable agriculture, the DA has also emphasized the importance of ongoing resource management and adaptation to evolving challenges, such as climate change and new technological developments. Tiu Laurel reiterated that the success of agricultural programs should be measured by their ability to respond to challenges and provide tangible benefits to the sector and the farmers they aim to support.
With this new direction, the DA is aiming to maximize taxpayer funds and improve long-term profitability, all while fostering more resilient and diversified agricultural practices across the country.
