The Department of Agriculture (DA) said it is cautiously optimistic that the farm sector will grow by more than 3 percent in 2026, pointing to improving fundamentals rather than a one-off rebound. Agriculture Secretary Francisco Tiu Laurel Jr. said history shows the target is achievable, with the sector posting above-3 percent growth in eight of the past 20 years, even as risks from weather, pests, and global markets remain.
What makes the outlook more credible this time, the DA said, is that recent gains came despite major headwinds. In 2025, agriculture grew by 3.1 percent even as the country was hit by 23 storms—most of them during critical harvest months. Export recovery also helped, led by bananas and new market access for avocados in Japan and durian in other destinations. These, Tiu Laurel said, are early results from reforms that began gaining speed in 2022.
The DA stressed that the goal is not just hitting a growth number, but keeping agriculture on a steady path that makes the sector a viable endeavor. Sustained growth, officials also said, is key to keeping farmers and fisherfolk profitable, attracting younger producers, and restoring agriculture’s role as a serious economic driver rather than a safety net sector.
To support this, the government has invested in “long-game” infrastructure—farm-to-market roads, warehouses, food hubs, dryers, cold storage, and a national command center to improve coordination. While these projects do not grab headlines, the agency said they are critical to reducing losses, stabilizing supply, and supporting growth over time.
Still, the DA acknowledged that current funding is not enough to fully fix decades-old structural problems. The sector needs an estimated P400 billion to P500 billion in annual investments, sustained across administrations, to rebuild institutions, strengthen food security, and improve resilience to shocks. In the near term, measures such as lower rice prices and wider access to the P20-per-kilo rice program have helped ease inflation and support broader economic stability.
For the DA, a well-calibrated view of agriculture’s performance matters because consistent, resilient growth—rather than boom-and-bust cycles—can anchor food security, temper inflation, and create real opportunities in the countryside. As Tiu Laurel put it, the challenge now is to “make the most of the hand we are dealt” and turn early gains into lasting momentum.
