Agricultural Policy Monitoring and Evaluation 2025

23. Philippines

Main findings

Support to agriculture

Support to agricultural producers (Producer Support Estimate, PSE) in the Philippines averaged 20% of gross farm receipts in 2022-24, indicating that one-fifth of agricultural producers’ gross receipts were generated by support policies. This is slightly below the 22% recorded two decades earlier and reflects a continuous decline since the peak of 28% in 2014-15.

Although budgetary support has gained in prominence, support to farmers continues to be dominated by Market Price Support (MPS), primarily for sugar, rice, maize and animal products. This means that the cost of support is borne mainly by consumers and other first-level buyers of these commodities, paying prices higher than they would have in the absence of support policies. As a result, domestic producer prices were 24% higher than border reference prices on average in 2022-24. Payments to farmers support variable inputs and investment in agricultural equipment and facilities. MPS and payments for inputs (which, together with payment based on output volumes, represent the most production and trade-distorting measures) account for 96% of support to farmers.

Support for general services in agriculture (General Services Support Estimate, GSSE) amounted to almost 5% of the sector’s value of production in 2022-24, almost twice the share observed in 2000-02. This included mainly investments in infrastructure, particularly irrigation systems and farm-to-market roads, as well as in the agricultural knowledge and innovation system especially education and extension programmes. Expenditures related to public stockholding have been rising and now represent the third largest component of GSSE spending, after infrastructure and agricultural knowledge system.

Total support to the agricultural sector accounted for 2.1% of GDP in 2022-24, lower than the 2.9% in 2000-02 but still the highest among countries reviewed in this report.

Key recent policy changes

In December 2024, the Philippines extended the Rice Competitiveness Enhancement Fund (RCEF) until 2031 by amending the Rice Tariffication Law. The fund, financed with the receipts from rice import tariffs, was established in 2019 to offset the impact of rice liberalisation. In its initial six years, the fund supported farmers by helping to purchase rice farming machinery and equipment, promoting rice seed development, and providing credit and extension services. The new law triples the budget to PHP 30 billion (USD 524 million) annually and changes its allocation. Funding for quality seed production is reduced from 30% to 20% of the total budget, and support for farm mechanisation drops from 50% to 30%. Fifty per cent of the budget is now allocated to training and extension, soil health improvement, pest and disease control and water management, up from 20% previously which was primarily directed toward subsidised credit and training services.

Effective from 8 July 2024, the government reduced the rice tariff from 35% to 15%, (Executive Order No. 62). This move sought to lower rice prices for consumers and help control inflation, given the substantial impact of rice on the consumer price index.

In 2024, the government focused on consumption initiatives with several programmes aimed at improving food security and nutrition. To address rising food prices, it introduced two subsidised rice programmes in July and August: Programme 29, which provided rice at PHP 29 (USD 0.5) per kilo for vulnerable groups, and the KNP Rice-for-All Program which offered rice at an initial price of PHP 45 (USD 0.8) per kilo for all Filipinos, before being reduced to PHP 40 (USD 0.7). Additionally, a Joint Administrative Order granted senior citizens and persons with disabilities a 5% discount on essential goods, capped at PHP 125 (USD 2) weekly. The Walang Gutom 2027 Food Stamp Program was also expanded, providing PHP 3 000 (USD 52) in monthly food vouchers to 300 000 food-insecure households across 10 regions.

Assessment and recommendations

• The Philippines has taken some action to integrate trade policies with sustainability in the agricultural sector. The country is already part of several regional trade agreements with environmental co-operation provisions, such as the Korea-ASEAN Free Trade agreement (FTA) and the EFTA-Philippines FTA. These agreements explicitly provide opportunities for technical co-operation in agriculture, particularly in areas such as agroforestry and sustainable resource management. The Philippines could use regional agreements to expand technical co-operation for sustainability in agriculture, particularly in reducing greenhouse gas (GHG) emissions and using climate adaptation technologies.

• The Philippines has established the Philippine Greenhouse Gas Inventory Management and Reporting System, which tracks GHG emissions primarily at the national level. While this system helps the country meet its international commitments, more granular sector‑ and product-level data is needed to effectively measure emission reductions and more accurately understand emissions across different commodities. Moving from national-level reporting to sectoral and product-level carbon footprint assessments would help the Philippines to track progress and guide mitigation strategies. To ensure consistency, such measurement efforts should be aligned with international standards and methodologies.

• The objective of rice self-sufficiency has driven domestic policies that support rice production which is an important agricultural GHG emitter. Moreover, the current system of commodity-specific support creates barriers to more diversified and resilient production systems that are better adapted to climate change. Commodity-specific support (e.g. rice and sugar) should be reassessed to ensure that it is consistent with climate change mitigation, adaptation and resilience objectives.

• The Philippine agricultural sector is highly vulnerable to climate-related risks, including extreme weather events and changing rainfall patterns. Capacity-building programmes have been established to train farmers in climate-smart agriculture, focusing on water management or soil fertility. However, more effort is needed, along with investments in R&D to develop and implement climate-smart technologies at a broader level. Agricultural productivity growth is below global averages, and investment in new technologies is crucial to improve yields while reducing emissions.

• The Philippine Government should continue the path of tariff reductions for key agricultural products to facilitate trade, improve food security, and contain inflation. Recent action to reduce tariffs on rice is a positive development. This reduction should be made permanent and extended to other agricultural products, especially those facing supply constraints.

Development of support to agriculture

Table 23.1. Philippines: Estimates of support to agriculture

Million USD

	2000-02	2022-24	2022	2023	2024p
Total value of production (at farm gate)	9 604	36 745	35 081	37 138	38 016
of which: share of MPS commodities (%)	90.37	88.85	89.44	88.28	88.85
Total value of consumption (at farm gate)	9 824	41 370	39 591	41 776	42 743
Producer Support Estimate (PSE)	2 123	7 631	7 895	7 388	7 611
Support based on commodity output	2 050	6 978	7 261	6 755	6 917
Market price support¹	2 050	6 978	7 261	6 755	6 917
Positive market price support	2 096	6 978	7 261	6 755	6 917
Negative market price support	-46	0	0	0	0
Payments based on output	0	0	0	0	0
Payments based on input use	69	634	615	613	675
Based on variable input use	36	318	325	319	311
with input constraints	0	0	0	0	0
Based on fixed capital formation	32	316	290	294	365
with input constraints	0	0	0	0	0
Based on on-farm services	0	0	0	0	0
with input constraints	0	0	0	0	0
Payments based on current A/An/R/I, production required	0	0	0	0	0
Based on Receipts / Income	0	0	0	0	0
Based on Area planted / Animal numbers	0	0	0	0	0
with input constraints	0	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	0	0	0	0	0
With variable payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
With fixed payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
Payments based on non-commodity criteria	0	0	0	0	0
Based on long-term resource retirement	0	0	0	0	0
Based on a specific non-commodity output	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0
Miscellaneous payments	5	19	20	19	19
Percentage PSE (%)	21.85	20.39	22.11	19.56	19.66
Producer NPC (coeff.)	1.30	1.24	1.27	1.23	1.24
Producer NAC (coeff.)	1.28	1.26	1.28	1.24	1.24
General Services Support Estimate (GSSE)	244	1 740	1 347	1 611	2 264
Agricultural knowledge and innovation system	56	293	298	294	287
Inspection and control	14	64	66	65	63
Development and maintenance of infrastructure	155	1 129	781	1 015	1 590
Marketing and promotion	6	50	50	49	53
Cost of public stockholding	12	178	128	162	245
Miscellaneous	1	25	23	26	26
Percentage GSSE (% of TSE)	10.31	18.64	14.57	17.90	22.92
Consumer Support Estimate (CSE)	-2 202	-7 860	-8 136	-7 489	-7 956
Transfers to producers from consumers	-2 242	-6 965	-7 155	-6 684	-7 057
Other transfers from consumers	-149	-1 128	-1 147	-1 027	-1 211
Transfers to consumers from taxpayers	0	0	0	0	0
Excess feed cost	188	233	166	221	312
Percentage CSE (%)	-22.33	-18.99	-20.55	-17.93	-18.61
Consumer NPC (coeff.)	1.32	1.24	1.27	1.23	1.24
Consumer NAC (coeff.)	1.29	1.23	1.26	1.22	1.23
Total Support Estimate (TSE)	2 368	9 372	9 242	8 998	9 875
Transfers from consumers	2 390	8 093	8 302	7 711	8 268
Transfers from taxpayers	126	2 406	2 087	2 314	2 818
Budget revenues	-149	-1 128	-1 147	-1 027	-1 211
Percentage TSE (% of GDP)	2.86	2.14	2.29	2.06	2.09
Total Budgetary Support Estimate (TBSE)	318	2 394	1 981	2 243	2 958
Percentage TBSE (% of GDP)	0.38	0.55	0.49	0.51	0.63
GDP deflator (2000-02 = 100)	100	203	198	207	..
Exchange rate (national currency per USD)	48.93	55.80	54.48	55.63	57.29

.. Not available

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient. A/An/R/I: Area planted/Animal numbers/Receipts/Income. 1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for the Philippines are: maize, rice, sugar, beef and veal, pig meat, poultry, eggs, bananas, coconut, mango and pineapple.

Source: OECD (2025), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Main policy instruments

Tariffs, tariff rate quotas (TRQs) and domestic market regulations are the most important agricultural support policies. Tariff protection is the Philippines’ main trade policy tool. The simple average applied Most Favoured Nation (MFN) tariff on agricultural products was 9.9% in 2021 (compared to 5.5% for industrial products). Tariff lines applied for agricultural commodities are ad valorem and range from 0% to 65%. (UNCTAD TRAINS, 2024[1]).

Tariff rate quotas are applied to 14 agricultural products, with in-quota tariffs ranging from 30% to 50% and out-of-quota from 35% to 65%. Products covered by the TRQs included live swine, goats and poultry, as well as poultry meat, potatoes, coffee, maize, rice and sugar. In March 2019, quantitative restrictions on rice imports were replaced with an import tariff system, under the Rice Tariffication and Liberalisation Law (RA 1120) implemented to comply with the Philippines’ WTO obligations. Import licensing is required for all regulated products (including those under TRQs). Additionally, grains, grain products and sugar require export permits.

The National Food Authority (NFA) implements rice price support by buying buffer stocks at administered prices from domestic producers and selling these stocks at subsidised prices to consumers. To offset the effects of rice liberalisation and to encourage self-sufficiency, the Philippines Department of Agriculture (DA) has implemented several support programmes for rice producers.

To encourage self-sufficiency in production and boost farmers’ incomes, budgetary support is provided for producers’ use of variable inputs, including seeds and fertilisers. Investments in general services are mainly for infrastructure and agricultural research and development.

To achieve its Nationally Determined Contribution (NDC) objectives, the Philippines focuses mitigation efforts on the major sources of agricultural GHG emissions (paddy rice cultivation, livestock enteric fermentation, soil cultivation, and livestock manure management) by adopting nature-based solutions (e.g. microbial inoculants or diet modification to reduce emissions from livestock), crop management techniques (such as supplements like biochar and organic fertiliser to increase soil friability) or renewable energy for water management. The Philippines committed to reduce GHG emissions by 75% relative to projected Business as Usual cumulative emissions between 2020 and 2030, of which 2.7% is unconditional and 72.3% is conditional (UNFCCC, 2021[2]).1 For 2021-30, the conditional target GHG emission reduction for agriculture is 29.4%, below the Business as Usual scenario of 539.09 MtCO₂eq cumulative emissions (Department of Agriculture, 2022[3]).

Policies for trade and sustainability in agro-food markets

The Philippines has some trade-related measures linked to the environmental sustainability of agriculture. There are three trade agreements to which it is part that contain environmental co-operation provisions with explicit linkages to agriculture:

• In the context of the Korea-ASEAN Free Trade Agreement, the Philippines is part of a framework for comprehensive economic co-operation among the parties. Article 9 of the agreement recognises opportunities for collaboration and technical co-operation in sectors such as agriculture (including livestock and plantation commodities), fisheries, and forestry, with sustainable development as one of the areas of co-operation.

• The EFTA-Philippines Free Trade Agreement includes a provision on trade in forest-based products (Article 11.8) in its chapter on Trade and Sustainable Development. The provision stipulates that the parties will work together to promote sustainable management of forest resources, reduce greenhouse gas emissions associated with deforestation and degradation of natural forests and peatlands, and strengthen forest law enforcement and governance. This co-operation also aims to promote trade in sustainable forest-based and agricultural products.

• The Free Trade Agreement between Korea and the Philippines, which entered into force in 2024, includes a chapter on Economic and Technical Cooperation with a provision under which the parties agree to promote the conservation and propagation of forest tree species and urban green networks through Research and Development activities (Department of Trade and Industry, 2024[4]).

The agricultural sector in the Philippines is the second largest contributor to GHG emissions after the energy sector. Rice cultivation represents the largest share of agricultural emissions (52%) of the sector in 2024 (NICCDIES, 2024[5]). Although the Philippines has yet to implement GHG emission measures in agriculture and food value chains directly tied to trade, the country is undertaking several pilot initiatives aimed at reducing GHG emissions in the rice sector. These efforts, particularly focused on reducing methane emissions from rice production, also provide farmers with opportunities to earn carbon credits for their sustainable practices:

• Japan and the Philippines are collaborating under Article 6.2 of the Paris Agreement to develop a Joint Crediting Mechanism methodology aimed at reducing methane emissions in rice paddies through improved water management, enabling the creation of carbon credits.

• The International Rice Research Institute and the Gold Standard Foundation have established a carbon credit method based on practices such as alternate wetting and drying, low-methane rice varieties, and optimised fertiliser and residue management, though large-scale implementation in the Philippines is still in its pilot phase.

Although these initiatives are not directly aimed at agro-food trade, they can help promote sustainable agricultural trade and open up new trade opportunities for low-carbon agricultural products. By linking farmers to carbon markets, they offer new sources of income while encouraging environmental practices. Scaling up rice pilot projects could also serve as a model for other commodities, advancing both environmental goals and the global reputation of Philippine agricultural products.

The Philippines focuses primarily on assessing GHG emissions at the national level rather than at the sectoral or individual product level. The Philippine Greenhouse Gas Inventory Management and Reporting System was established in 2014, aiming to institutionalise a comprehensive system for measuring and reporting GHG emissions in the Philippines. The system is managed by the Climate Change Commission (CCC) and aligns with the country’s obligations under the United Nations Framework Convention on Climate Change. The DA has been designated as the lead agency for the agricultural sector, responsible for monitoring sector-specific GHG emissions, and reporting them to the CCC.

Recent policy developments

Domestic policy developments in 2024-25

In January 2024, a four-year plan, the Para sa Masaganang Bagong Pilipinas (MBP) 2024-2027, was presented to achieve the country’s food and nutritional needs through a sustainable and cost-effective agricultural system. The plan aims to increase agricultural productivity, reduce food costs, increase the sector’s production capacity, and make farming and fishing more profitable. The MBP seeks to overcome policy, regulatory, service, and investment gaps that have hindered efforts to modernise the agrifood sector. More specifically, it seeks to:

• expand available agriculture lands and fishery areas by building new irrigation facilities and improving existing infrastructures

• mechanise and modernise agricultural and fisheries production systems

• develop post-harvest facilities and efficient logistics systems to reduce post-harvest losses

• improve and expand market access for Philippine agricultural products by reducing the cost of getting goods from farms to markets

• digitalise DA operations by equipping agricultural stakeholders with accessible technology and advanced tools, and by providing accurate and real-time data to enable data-driven decisions

• research for development and extension.

In April 2024, the National Food Authority (NFA) Council approved a PHP 10 billion (USD 174 million) modernisation plan to develop post-harvest facilities and expand rice drying capacity to 180 000 tonnes. The plan aims to enhance the grains agency’s ability to process and store locally procured rice so it can increase its buffer stock. The additional facilities (dryers, rice mills, warehouses and silos) will be constructed in major rice production areas (National Food Authority, 2024[6]).

In September 2024, a new Anti-Agricultural Economic Sabotage Act was adopted. The law defines agricultural smuggling, hoarding, profiteering and cartel activities such as economic sabotage which is punishable by life imprisonment and a fine five times the value of the goods involved. It replaces the 2016 Anti-Agricultural Smuggling Act, and expands the product coverage to rice, corn, beef, pork, poultry, vegetables, fruits, salt, sugar, tobacco and palm oil. Key provisions include i) the establishment of a daily price index to monitor regional agricultural prices and detect irregularities, ii) the creation of the Anti-Agricultural Economic Council chaired by the President to oversee enforcement, iii) the formation of a specialised enforcement group with the authority to inspect, seize, and prosecute offenders and iv) a prohibition on the misuse of government storage facilities. The legislation aims to protect farmers, ensure reasonable prices for consumers and combat exploitation in the food supply chain (USDA GAIN, 2024[7]).

In September 2024, the National Irrigation Administration (NIA) was temporarily transferred from the DA to the Office of the President (OP). The NIA ensures the development and maintenance of irrigation systems to support agricultural productivity and farmers’ incomes in accordance with water management principles. The return of the NIA to the OP in 2024 is intended to secure additional funds to accelerate irrigation projects, with a particular focus on meeting the urgent financial requirements for rice irrigation (Department of Agriculture, 2024[8]).

In May 2024, the Philippine Crop Insurance Corporation (PCIC) was reassigned to the Department of Agriculture, three years after it was moved to the Department of Finance. The PCIC, established in 1995 and attached to the DA as a government owned or controlled corporation, is tasked with providing insurance protection to farmers against losses caused by natural disasters, plant diseases and pest infestation. The PICI’s 2024 return to the DA aims to better integrate the corporation in the agricultural sector and to strengthen agricultural insurance programmes that are highly responsive to the needs of small farmers, fisherfolk and other agricultural stakeholders. Additionally, the number of PCIC board seats allocated to representatives of subsistence farmers increased from one to three (Department of Agriculture, 2024[8]).

Producer policies

In December 2024, the Rice Tariffication Law (Republic Act 11203) was amended by Republic Act 12078. Modifications include:

• Extending the Rice Competitiveness Enhancement Fund (RCEF) until 2031. The RCEF was created in 2019 to offset the effect of replacing quantitative restrictions on rice imports with tariffs. It provided support to rice farmers totalling PHP 10 billion (USD 175 million) per year and was financed with the receipts from rice import tariffs. It provided support to farmers by providing rice farm machinery and equipment, rice seed development and promotion, credit assistance, and extension services. The new law triples the budget to PHP 30 billion (USD 524 million) per year. PHP 6 billion (USD 105 million) will be used to provide quality rice seeds, PHP 9 billion (USD 157 million) for farm mechanisation, and PHP 15 billion (USD 262 million) for other support activities such as extension and training programmes, financial assistance to rice farmers, credit, soil improvement, solar-powered irrigation systems, and water impoundment projects.

• Strengthening the DA’s capacity to stabilise rice price and regulate supply. The DA can declare a food security emergency and authorise the National Food Authority (NFA) to sell rice buffer stocks to government agencies and the public through the government-run KADIWA centres, in areas affected by rice supply shortages or exceptional price increases. Additionally, the law allows the NFA ‘s rice buffer stocks to be replenished by either locally produced or imported rice if local production is insufficient.

• Establishing a comprehensive database to monitor rice stocks in all grain warehouses and storage facilities. The DA’s Bureau of Plant Industry is also tasked with conducting regular inspections of grain warehouses and agricultural facilities to ensure proper management of rice supplies.

• Allowing the President to authorise rice imports at lower tariff rates for a limited period of time or for a specific quantity. In the event of a significant decline in domestic rice prices, the President may suspend rice imports for a limited period or volume until rice supply and prices have stabilised (Congress of the Philippines, 2024[9]).

In 2024, the National Tobacco Administration (NTA) allocated PHP 100 million (USD 1.7 million) as a crop production subsidy to tobacco farmers for the 2024–25 crop year. The NTA is the government tobacco agency mandated to improve the economic and living conditions of the tobacco farmers and develop the tobacco industry. As of December 2024, more than 16 000 farmers have received a cash transfer of PHP 6 000 (USD 105). Farmers must meet certain criteria, including NTA registration and land size limits, to qualify. The grant, funded through the General Appropriation Act (GAA), complements existing support to increase tobacco farmers’ production and incomes (Department of Agriculture, 2024[8]).

The DA, in partnership with the Development Bank of the Philippines (DBP) and the agrochemical company Planters Products, launched the input subsidy programme “the Agri-Puhunan at Pantawid Programme” (APP) in September 2024, with an initial PHP 3 billion (USD 52 million) budget. The programme aims to assist rice farmers who are members of agricultural co-operatives. Support is provided through loans at reduced interest rates and a direct financial assistance of PHP 32 000 (USD 559), disbursed over four months. The DBP will manage loans while Planters Products supplies affordable fertiliser and inputs. The Philippine Crop Insurance Corporation will provide insurance cover, and the DA’s National Rice Programme will distribute high quality rice seeds. (Department of Agriculture, 2024[8]).

In April 2024, under its Price Range Scheme for Palay Procurement, the National Food Authority (NFA) Council set higher procurement prices for domestically produced rice to increase the country’s rice buffer stock and support rice farmers while encouraging them to sell to the NFA. The new prices for a kilogram of dry and clean palay (rice) ranged from PHP 23-30 (USD 0.4-0.5), an increase from the previous PHP 19‑23 (USD 0.33-0.4). Wet and fresh palay was purchased between PHP 17-23 (USD 0.3-0.4) per kg, an increase from PHP 16-19 (USD 0.28-0.33). In October 2024, the NFA raised its selling price for other government agencies to PHP 38 (USD 0.7) per kilo to minimise the agency’s operating costs. Buyers of NFA rice included the Department of Social Welfare and Development, Office of Civil Defence, the National Disaster Risk Reduction Management Council or local government units (National Food Authority, 2024[6]).

In 2024, the DA launched and expanded several initiatives to foster greater youth involvement in the agricultural sector in the Philippines. These efforts include comprehensive training programmes and international exchange opportunities designed to familiarise young farmers with advanced technologies and innovative practices. Additionally, the 2024 edition of the Young Farmers Challenge Program as a financial grant assistance programme aims to support young Filipinos actively engaged in agriculture.

Marketing and promotion of agricultural products

In 2024, programmes aimed to ensure food accessibility, quality and affordability for Philippine households were extended. The government expanded its regulated-price store network, KADIWA ng Pangulo with the approval of 148 new sites for development.

Consumer and nutrition policies

In 2024, the government introduced two subsidised rice programmes aimed at ensuring access to affordable rice and mitigating the socio-economic impact of rising food prices on vulnerable populations:

• Programme 29 (P29). Launched in July 2024, this initiative provided subsidised rice to vulnerable households including the elderly, persons with disabilities, single parents and indigenous peoples. The programme started with a large-scale pilot phase to collect data on demand, supply and logistics to facilitate a planned nationwide roll-out. It aims to reach 6.9 million vulnerable households. The programme sells rice sourced from national stocks with additional supply from the National Irrigation Authority farmers contracts or imports if needed. Beneficiary households were allowed to purchase up to 10 kg of rice per month at the subsidised price of PHP 29 (USD 0.5) per kilogram.

• The KNP Rice-for-All Program, introduced in August 2024, provides broader access to affordable rice at selected KADIWA sites. Well-milled rice was made available initially at PHP 45 (USD 0.8) per kilogramme, later reduced to PHP 40 (USD 0.7), with supply sourced from both local traders and rice importers. Customers may purchase up to 25 kilos per day. To enhance accessibility, the Department of Agriculture deployed KADIWA ng Pangulo rice kiosks across Metro Manila, strategically located in high-traffic areas such as train stations and public markets to maximise accessibility.

A special 5% discount for senior citizens and persons with disabilities on basic necessities and prime commodities was put in place. The discount does not include VAT exemptions and is capped at PHP 125 (USD 2) per week for a maximum weekly purchase of PHP 2 500 for at least four different locally produced items. Specific goods qualify for the discount, including basic food items such as rice, corn, fish, pork, beef, poultry, eggs, sugar, household items. The “No Double Discount” clause prohibits the combination of the 5% discount with other promotional offers or the 20% discount for senior citizens and persons with disabilities. Companies offering these discounts can deduct them from income tax payments.

In July 2024, the Walang Gutom 2027 Food Stamp Program began national implementation, six months after its pilot. It aims to feed 300 000 beneficiaries in 10 regions in 2024. The initiative provides cash assistance through Electronic Benefit Transfer cards that beneficiaries can use to purchase selected food items from accredited retailers, including KADIWA centres. Digital monthly food vouchers of PHP 3 000 (USD 52) are provided for 6 months. Beneficiaries have a monthly income below PHP 8 000 (USD 140) and are required to attend training sessions or provide certificates of employment efforts.

Biosecurity policies

Due to the continued spread of African Swine Fever (ASF) which severely affected large and small-scale Philippine pig farmers, the government allocated PHP 300 million (USD 5 million) in 2024 to procure 600 000 doses of an ASF vaccine developed in Viet Nam, and an additional PHP 50 million (USD 1 million) for related vaccination costs. Several guidelines were issued for the controlled use of the ASF vaccine alongside enhanced surveillance and disease control measures, in line with the Integrated National Swine Production Initiative for Recovery and Expansion Programme and the Bantay ASF sa Barangay Programme already in place. Vaccines were provided free of charge to pig farmers. Farms located in the most severely affected zones of Amended National ASF Zoning and Movement Plan were prioritised. To mitigate production losses and to encourage the early reporting of suspected cases by farmers, the compensation for diseased pigs surrendered for culling was increased from PHP 5 000 (USD 87) maximum to PHP 12 000 (USD 209).

Policies to facilitate climate change mitigation or adaptation in agriculture

In November 2024, the Asian Development Bank provided a USD 500 million loan to support the country to achieve its Nationally Determined Contribution and implement its Climate Change Action Plan. The policy-based loan’s Subprogramme 2 targets climate change adaptation in vulnerable sectors, including agriculture, considering also the Philippines’ development priorities. The new subprogramme will contribute to i) improved resilience of farming and fishing communities through access to climate services, sustainable production systems, and climate-smart technologies; ii) enhanced climate resilience of agriculture, fisheries and food systems; iii) increased stability of ecosystems and biodiversity; and iv) the better management of climate risks (Asian Development Bank, 2024[10]).

In October 2024, the World Bank and the Philippines began to prepare the Philippine Sustainable Agriculture Transformation Programme (PSAT), to be financed under the World Bank’s Program-for-Results Financing Scheme in 2025. The PSAT aims to advance agriculture and fisheries development by strengthening the resilience of agri-food systems through climate-smart strategies, diversification, an enabling policy environment and improved fiscal performance. The PSAT will be aligned with the Para sa Masaganang Bagong Pilipinas (MBP) 2024-27. It will aim to enhance production and incomes in diversified rice-based farming systems, efficiency and resilience of food value chains, and the institutional and policy environment (World Bank, 2024[11]).

In September 2024, the International Fund for Agricultural Development (IFAD) and the Philippines launched the Value Chain Innovation for Sustainable Transformation in Agrarian Reform Communities project (VISTA) to reduce rural poverty, boost food security and protect ecosystems. Targeting upland areas in Mindanao and Luzon regions, VISTA will support 350 000 smallholder farmers, including women, youth and indigenous people, over six years. The project will focus on strengthening value chains, promoting climate resilience and sustainable land use practices. With a budget of EUR 104.35 million (USD 113 million), VISTA will also improve agricultural productivity through better farming systems and infrastructure (IFAD, 2024[12]).

The adaptation programme Adapting Philippine Agriculture to Climate Change (APA) was officially implemented in September 2024. The project is co-funded by the Green Climate Fund (USD 26.3 million) and the government of the Philippines (USD 12.98 million). The projects aims to develop climate-resilient agriculture services and information using low-emission technologies. The project also aims to strengthen regulatory frameworks, improve market systems, and enhance knowledge management to mainstream and scale up climate-smart agriculture across the country (Department of Agriculture, 2024[8]).

Trade policy developments in 2024-25

Effective on 8 July 2024, presidential Executive Order No. 62, reduced the tariff on rice from 35% to 15%. This decision aimed to reduce the cost of rice to consumers and curb inflation due to rice’s significant weight in the consumer price basket (Government of the Philippines, 2024[13]).

Temporary reductions on tariffs on maize (5% in-quota; 15% out-of-quota) and pig meat (15% in-quota; 25% out-of-quota) were extended until the end of 2024. These reductions, subject to semi-annual review, aimed to curb high inflation driven by supply constraints and the impact of ASF, boost the availability of agricultural commodities within the country, and diversify sources of supply. In addition, a reduced tariff rate of 5% for mechanically deboned or separated turkey and chicken meat was applied until 31 December 2024.

In 2024, several temporary import bans were imposed to address concerns relating to animal disease. This included bans on domestic and wild birds (and products thereof) from Austria, Belgium, France, Japan and the Netherlands, due to HPAI outbreaks. Cattle-related imports were suspended from Japan due to the detection of the Lumpy Skin Disease and from Türkiye due to an FMD outbreak. The Philippines issued a temporary ban on live goat imports from the United States after Coxiella burnetti, the bacteria that causes Q fever, was detected.

In November 2024, the Philippines expanded its access to the Japanese food market with the approval to export Hass avocados. The Philippine export portfolio to Japan already includes bananas and pineapples. The inclusion of Hass avocados is the culmination of more than a decade of effort, with initial access requests dating back to 2011.

In January 2024, the Philippines signed a five-year rice agreement with Viet Nam through a memorandum of understanding (MoU) to secure 1.5 to 2 million metric tonnes of rice per year. In addition, the Philippines’ DA and the Ministry of Industry and Trade of Viet Nam will also co-operate to exchange information on rice production, crop situation, import and export requirements, combat illegal rice trade and consult each other before introducing measures that may hinder or delay exports.

The Philippines-Korea Free Trade Agreement was ratified by the president on 13 May 2024, followed by the Senate on 23 September 2024. The FTA with Korea aims to facilitate trade and investment flows, remove barriers to market access, and create new investment opportunities. It will improve the Philippines’ market access for agricultural products such as bananas, processed pineapples and other tropical fruits, industrial products and selected services sectors. The Philippines will eliminate tariffs on about 96.5% of South Korean products while South Korea will do so on about 94.8% of Philippine products. The FTA also includes provisions for capacity building and technical co-operation between the two countries.

Policy context

Key economic and agricultural statistics

The Philippines is a mid-size country in terms of land area, but its population of 115 million makes it the world’s 13^th most populous country. In 2023, almost half of Filipinos (48%) lived in urban areas. With a median age of 26 years, the Philippines has a comparatively young population. At USD 10 989 in purchasing power parity (PPP), GDP per capita accounts for less than 38% of the average GDP per capita of all countries analysed in this report (Table 23.2). Overall, the Philippines’ economy is well integrated into international markets as measured by a ratio of trade to GDP of 24% in 2022.

Agriculture remains an important sector for the Philippines, but the sector’s 22% share in total employment compared to its 9% contribution to GDP highlights a significant gap in labour productivity. The sector is characterised by small landholdings, with an average farm size of 0.8 ha in 2022, a significant decline from 1.7 ha recorded in the previous Census of Agriculture and Fisheries in 2012.

Table 23.2. Philippines: Contextual indicators

	Philippines		International comparison
	2000*	2023*	2000*	2023*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	268	1 262	0.7%	0.8%
Population (million)	80	115	1.9%	2.2%
Land area (thousand km2)	298	298	0.4%	0.4%
Agricultural area (AA) (thousand ha)	11 234	12 683	0.4%	0.4%
			All countries1
Population density (inhabitants/km2)	265	383	52	64
GDP per capita (USD in PPPs)	3 366	10 989	9 368	29 013
Trade as % of GDP	44.9	23.6	12.3	14.9
Agriculture in the economy			All countries1
Agriculture in GDP (%)	13.9	9.4	2.9	3.5
Agriculture share in employment (%)	37.1	22.4	-	-
Agro-food exports (% of total exports)	4.0	7.8	6.4	8.1
Agro-food imports (% of total imports)	7.3	14.0	5.8	7.3
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	62.4	59.7	-	-
Livestock in total agricultural production (%)	37.6	40.3	-	-
Share of arable land in AA (%)	44.8	44.1	31.8	33.3

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

Since 2012, the Philippines has maintained relatively stable GDP growth averaging around 6% annually, alongside comparatively low and declining unemployment rates, which fell to approximately 2% in 2019 (Figure 23.4). However, the COVID-19 pandemic led to a sharp economic contraction of around 10% in 2020, accompanied by rising unemployment. The economy rebounded in 2021 with GDP growth of 5.7%, accelerating to 7.6% in 2022 before moderating to 5.5% in 2023. Inflation has been fluctuating. After lower rates in 2019 and 2020, inflation rose to 4% in 2021 and nearly 6% in 2023.

The Philippines has been a consistent and increasing net agro-food importer since 2000. Still, agro-food exports have grown over the last two decades (Figure 23.5). While agro-food exports have plateaued since 2017, agro-food imports have continued to increase at a higher rate during this period. The significant increase in agro-food imports since 2020 has been driven notably by stronger imports of grains (wheat and rice), oilcake, meat and palm oil. Processed products for final consumption dominate the Philippines’ agro-food imports representing 45% of the total in 2023. In turn, processed products for the industry (mainly crude coconut oil) constitute an important export category, accounting for 31% of agro-food exports, followed by primary products for final consumption (mainly fruit such as bananas or pineapple). In 2023, agro-food imports declined significantly compared to 2022, driven partly by reduced imports of palm oil, oilcake, wheat, maize, meat, and dairy products, among other commodities. Agro-food exports also contracted primarily due to a reduction in crude coconut oil exports.

Between 2013 and 2022, agricultural production in the Philippines grew at an average annual rate of just 0.2%, significantly below the global average of 1.8% (Figure 23.6). This modest growth was primarily driven by an above-average increase in intermediate inputs (0.6% per year). However, total factor productivity, which reflects gains from innovation, technological improvements, and efficiency in resource use, declined at an average rate of -0.3% per year, indicating a negative contribution to growth. Additionally, the use of primary factors, such as land, labour or capital, also contracted slightly, declining by 0.1% per year.

Agriculture remains the largest consumer of water, accounting for 76% of total water use in 2023. In contrast, the sector’s share in total energy abstractions remains low at just 0.6%. The country’s nitrogen balance continued to decline in 2023. However, both nitrogen and phosphorus balances remain high compared to world averages.

Table 23.3. Philippines: Productivity and environmental indicators

	Philippines		International comparison
	1991-2000	2013-2022	1991-2000	2013-2022
			World
TFP annual growth rate (%)	0.3%	-0.3%	1.7%	0.8%
			OECD average
Environmental indicators	2000*	2023*	2000*	2023*
Nitrogen balance, kg/ha	50.8	38.0	32.0	29.7
Phosphorus balance, kg/ha	7.7	8.9	3.3	2.5
Agriculture share of total energy use (%)	0.4	0.6	1.7	2.0
Agriculture share of GHG emissions (%)	29.2	..	8.7	10.1
Share of irrigated land in AA (%)	15.3	14.9	-	-
Share of agriculture in water abstractions (%)	82.4	76.2	47.0	49.5
Water stress indicator	..	..	8.7	..

Note: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

Heavy government interventions in agricultural markets within a closed economy characterised the Philippines during the period from 1970 to 1986. The government had monopoly control over trade in rice, sugar and maize, operated by the National Grains Authority (NGA) established in 1972 (later renamed the National Food Authority, NFA). Sugar trade was nationalised under the National Sugar Trading Corporation. At the same time, high-yield rice varieties were introduced and their use was encouraged with input subsidies, as was the use of fertilisers and pesticides. Public spending in the sector increased (particularly on irrigation), financed by a mix of taxes on major agricultural exports and foreign loans. Access to credit was facilitated by legally obliging financial institutions to provide 25% of their loans to the agricultural sector. Budgetary expenditures financed extension services to the farming sector (OECD, 2017[14]).

Partial liberalisation of the sector was implemented gradually from 1986 to 2000. Reforms undertaken in the 1990s aimed to improve services provided to agriculture, particularly extension services, and infrastructure. Market interventions were gradually reduced, as were tariffs and non-tariff measures on agro-food imports. The policy of self-sufficiency in rice continued with the provision of input subsidies to farmers, mainly for fertilisers and certified seeds, but also with credit facilitation and the provision of support to public services for agriculture, such as investments in irrigation and farm-to-market roads. At the end of the 1980s and in the middle of the 1990s, the Philippines negotiated two trade agreements: the ASEAN Free Trade Area and the Global System of Trade Preferences among Developing Countries. Upon joining the WTO in 1995, the country committed to removing quantitative restrictions on imports of sensitive agricultural products, with the exception of rice, and to gradual liberalisation of agro-food trade. Public expenditure on agriculture declined substantially in the late 1990s, due to tight fiscal policies adopted in the aftermath of the Asian Financial Crisis (OECD, 2017[14]).

Since 1988, the Philippines has undertaken an ambitious agrarian reform to redistribute agricultural land to landless farmers and land workers. The reform covered close to three-quarters of the country’s agricultural area. While the redistribution of land was effectively complete by the end of 2015, property rights remained unsettled and almost half of the reform beneficiaries still have collective ownership certificates instead of individual property rights.

During the 2000s, the government undertook policy measures to further reduce market interventions in agriculture. Subsidised credit programmes were terminated, and private traders allowed to import rice at limited levels. However, the focus on food (rice) self-sufficiency was reinforced and after the global food price crisis in 2008 spending on irrigation and input subsidies increased substantially. The Food Staples Sufficiency Programme, launched in 2011, retained a focus on rice and other selected staples, but shifted emphasis away from input subsidies towards providing public services to agriculture, such as extension and infrastructure (OECD, 2017[14]). Following the Uruguay Round Agreement on Agriculture, the system of quantitative restrictions for rice was abolished in March 2019 and replaced by a tariff rate quota system. The government established the Rice Competitiveness Enhancement Fund (RCEF) in 2019 to offset the effect of the liberalisation of rice imports on producers’ incomes. This fund has an annual appropriation of PHP 10 billion (USD 203 million) for six years (until 2025) and is financed with receipts from rice import tariffs. The RCEF supports purchases of farm machinery and equipment (50% of the budget), rice seed development and promotion (30%), subsidised credit to rice farmers (10%) and extension services (10%).

In 2018 the government established a comprehensive National Feeding Program Masustansyang Pagkain Para sa Batang Pilipino Act to address under-nutrition and nutrient-deficiency among children in public day care, kindergarten, and elementary schools. The programme includes several components: the School-based Feeding Programme (implemented by the Department of Education), the Supplemental Feeding Programme for children in day care (Department of Social Welfare and Development in co-ordination with local government units) and the Milk Feeding Programme (DA in co-ordination with the National Dairy Authority and the Philippine Carabao Center). In co‑operation with the Philippines Carabao Centre and the National Dairy Authority, a large portion of the targeted milk volume required by the programme was supplied by local dairy farmers and co-operatives.

Table 233.4. Philippines: Agricultural policy trends

Period	Framework	Changes in agricultural policies
Prior to 1986	Closed economy with heavy state interventions in agricultural markets and trade	Agricultural import tariffs; Export taxes on agricultural products State monopoly control over rice and maize trade (NGA, now NFA) Food self-sufficiency (rice and other staples); Increasing support to those commodities Nationalisation of sugar production; Creation of the National Sugar Trading Corporation
1986-2000s	Gradual reforms towards trade liberalization	Continued policy of food self-sufficiency (rice) Land reform started in 1988 (redistribution of land) National Sugar Trading Corporation reduced its functions and changed to the Sugar Regulatory Administration Investments in general services (irrigation, roads) Input subsidies declined due to the Asian financial crisis Removal of quantitative restrictions of all agricultural products except rice FTAs and WTO accession
2000-present	Minor policy change, some forms of state intervention in markets and trade maintained	Food self-sufficiency (rice) continues to be the main objective Quantitative quotas for imports of 14 agricultural commodities High tariffs of some agricultural products, particularly rice and maize Subsidised credit was dismantled Input subsidies for rice Import quantitative restrictions for rice abolished and replaced by import tariffs (2019) Increased budgetary support to rice producers

References

[10] Asian Development Bank (2024), “Climate Change Action Program, Subprogram 2: Report and Recommendation of the President”, https://www.adb.org/projects/documents/phi-55268-003-rrp.

[9] Congress of the Philippines (2024), “Republic Act No. 12078”, The Lawphil Project, https://lawphil.net/statutes/repacts/ra2024/ra_12078_2024.html.

[8] Department of Agriculture (2024), Department of Agriculture, https://www.da.gov.ph/.

[3] Department of Agriculture (2022), Information provided to the OECD Secretariat by the Philippines Department of Agriculture.

[4] Department of Trade and Industry (2024), Philippines-Korea (PH-ROL) Free Trade Agreement (FTA), https://www.dti.gov.ph/korea-free-trade-agreement/.

[13] Government of the Philippines (2024), “Executive Order No. 62. Modifying the nomenclature and rates of import duty on various products”, Official Gazette, https://www.officialgazette.gov.ph/2024/06/20/executive-order-no-62-s-2024/.

[12] IFAD (2024), “IFAD and the Philippines launch new project to boost rural livelihoods and protect ecosystems”, https://www.ifad.org/en/w/news/ifad-and-the-philippines-launch-new-project-to-boost-rural-livelihoods-and-protect-ecosystems.

[6] National Food Authority (2024), Buying/Selling Price, https://nfa.gov.ph/buying-selling-price.

[5] NICCDIES (2024), What is Climate Change?, https://niccdies.climate.gov.ph/.

[14] OECD (2017), Agricultural Policies in the Philippines, OECD Food and Agricultural Reviews, OECD Publishing, Paris, https://doi.org/10.1787/9789264269088-en.

[1] UNCTAD TRAINS (2024), WITS (World Integraded Trade Solution), https://wits.worldbank.org/tariff/trains/country-byhs6product.aspx?lang=en.

[2] UNFCCC (2021), Republic of the Philippines, National Determined Contribution, Communicated to the UNFCCC on 15 April 2021, https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Philippines%20First/Philippines%20-%20NDC.pdf.

[7] USDA GAIN (2024), Philippines Enacted New Anti-Agricultural Economic Sabotage Law, https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Philippines%20Enacted%20New%20Anti-Agricultural%20Economic%20Sabotage%20Law_Manila_Philippines_RP2024-0036.pdf.

[11] World Bank (2024), “Philippines Sustainable Agriculture Transformation (P507504)”, https://documents1.worldbank.org/curated/en/099120624234031336/pdf/P5075041ccb06a061a97711e871a90de0e.pdf.

Note

← 1.  Unconditional refers to policies and measures which can be undertaken using nationally mobilised resources. Conditional refers to policies and measures which require support or the means of implementation under the Paris Agreement.