Agricultural Policy Monitoring and Evaluation 2026

24. Philippines

Main findings

Support to agriculture

Support to farmers (Producer Support Estimate, PSE) in the Philippines averaged 22% of gross farm receipts in 2023-25, indicating that slightly more than one-fifth of farmers’ gross receipts were generated by support policies. Producer support declined from a peak of around 28% in 2014-15 to 20% in 2023 before increasing again in 2024 and 2025, reflecting stronger price support for several commodities.

Support to farmers continues to be dominated by Market Price Support (MPS), which generates transfers to farmers from consumers when domestic prices are higher than border reference prices, particularly for sugar, rice, maize, and livestock products. MPS mainly reflects border measures, including tariffs and tariff rate quotas, while rice producers also benefit from public procurement at administered prices and domestic market interventions by the National Food Authority. These policies are closely linked to longstanding objectives of food security and greater self-sufficiency, especially for rice, but imply that much of the cost of support is borne by consumers and other first-level buyers. As a result, average domestic producer prices were 29% above border reference prices in 2023-25. Budgetary support has gradually gained importance over time, mainly targeting the use of variable inputs (including seeds and fertiliser) and investment in agricultural equipment, facilities and concessional credit.

Support for general services in agriculture (General Services Support Estimate, GSSE) amounted to more than 5% of the value of production in 2023-25, more than twice the level observed in 2000-02, reflecting continued efforts to strengthen enabling services for the agricultural sector. Spending is concentrated on irrigation systems and farm-to-market roads, alongside agricultural knowledge and innovation services, particularly education and extension programmes.

Budgetary transfers to consumers are in the form of targeted food assistance programmes, including school feeding initiatives, the Supplemental feeding programme and the Walang Gutom food stamp programme introduced in 2023. These programmes aim to improve food access for vulnerable households. However, transfers from consumers to farmers from MPS policies are greater than these budgetary transfers, meaning that consumers are net contributors overall. On average, policies increase consumers’ food expenditures (measured at farm gate prices) by about 20%.

Total support to the agricultural sector declined from 2.9% of GDP in 2000-02 to 2.3% of GDP in 2023-25, but remains among the highest levels across countries covered in this report, indicating a relatively high economy-wide cost of agricultural support.

Key policy changes in 2025-26

In February 2025, the government declared a food security emergency on rice, following sustained increases in domestic retail prices. The measure authorised the release of National Food Authority (NFA) buffer stocks to government agencies and local distribution channels, reinforcing the use of public stockholding as an instrument for retail price stabilisation.

A formal palay (unmilled rice) floor price mechanism was introduced, mandating the Department of Agriculture to set and periodically adjust regional minimum procurement prices based on production costs and market conditions. Government entities must procure rice at or above the established floor price, adding a new tool for rice price support during harvest periods.

A flexible tariff mechanism for rice imports was established, linking applied tariff rates to movements in international prices within a defined range. While the applied MFN tariff remained at 15% in 2025, as of January 2026, an automatic adjustment mechanism is in place to moderate the transmission of global price fluctuations to the domestic market.

The NFA advanced a modernisation programme in 2025 focusing on upgrades to rice storage, drying and milling infrastructure. The programme is expected to expand public storage capacity and improve stock management.

Assessment and recommendations

• Rebalance rice policy by gradually reducing reliance on price-distorting mechanisms and shifting towards more targeted risk-management instruments. While recent measures such as the formalisation of a palay floor price mechanism and the introduction of a flexible rice tariff framework address short-term price volatility, continued reliance on commodity-specific price support may limit diversification and affect production and trade incentives.

• Reduce reliance on border measures and administered prices for rice and sugar, while strengthening the enabling environment for agriculture. Redirecting support towards infrastructure, innovation systems, risk management tools and transparent market information would improve policy coherence and support more sustainable productivity growth.

• Sustain and deepen the shift towards general services by prioritising investments in innovation and resilience. Spending on post-harvest infrastructure, storage modernisation, digital systems and climate advisory services should be complemented by greater focus on R&D, extension services, soil health systems and climate information services to support long-term sector performance and reduce reliance on recurrent market interventions.

• Enhance predictability and transparency in the use of trade and sanitary measures by limiting ad hoc interventions and ensuring measures are transparent, time-bound and consistent with long‑term competitiveness, food security and climate objectives. This would support stable investment signals and improve integration into regional and global markets.

Key indicators on agricultural support

Table 24.1. Philippines: Estimates of support to agriculture

Million USD

	2000-02	2023-25	2023	2024	2025p
Total value of production (at farm gate)	9 608	36 851	36 426	37 392	36 735
of which: share of MPS commodities (%)	90.34	89.60	89.28	89.70	89.82
Total value of consumption (at farm gate)	9 828	41 439	40 976	42 063	41 278
Producer Support Estimate (PSE)	2 124	8 269	7 490	8 161	9 156
Support based on commodity output	2 051	7 478	6 611	7 282	8 539
Market price support¹	2 051	7 478	6 611	7 282	8 539
Positive market price support	2 097	7 478	6 611	7 282	8 539
Negative market price support	-46	-0	0	0	0
Payments based on output	0	0	0	0	0
Payments based on input use	69	772	860	860	598
Based on variable input use	36	433	498	454	346
with input constraints	0	0	0	0	0
Based on fixed capital formation	32	340	361	406	252
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	19	19	19
Percentage PSE (%)	21.85	21.99	20.08	21.32	24.51
Producer NPC (coeff.)	1.30	1.29	1.23	1.29	1.34
Producer NAC (coeff.)	1.28	1.28	1.25	1.27	1.32
General Services Support Estimate (GSSE)	244	1 935	1 611	2 264	1 930
Agricultural knowledge and innovation system	56	296	294	287	307
Inspection and control	14	62	65	63	57
Development and maintenance of infrastructure	155	1 286	1 015	1 590	1 251
Marketing and promotion	6	47	49	53	38
Cost of public stockholding	12	219	162	245	251
Miscellaneous	1	26	26	26	25
Percentage GSSE (% of TSE)	10.30	18.48	17.38	21.06	16.92
Consumer Support Estimate (CSE)	-2 203	-8 292	-7 128	-8 276	-9 471
Transfers to producers from consumers	-2 243	-7 902	-6 521	-8 138	-9 046
Other transfers from consumers	-149	-1 326	-994	-1 474	-1 511
Transfers to consumers from taxpayers	0	273	169	325	325
Excess feed cost	188	663	217	1 011	761
Percentage CSE (%)	-22.33	-20.17	-17.47	-19.83	-23.13
Consumer NPC (coeff.)	1.32	1.29	1.22	1.30	1.34
Consumer NAC (coeff.)	1.29	1.25	1.21	1.25	1.30
Total Support Estimate (TSE)	2 369	10 477	9 270	10 750	11 411
Transfers from consumers	2 391	9 228	7 514	9 612	10 556
Transfers from taxpayers	126	2 575	2 749	2 612	2 365
Budget revenues	-149	-1 326	-994	-1 474	-1 511
Percentage TSE (% of GDP)	2.86	2.27	2.12	2.33	2.34
Total Budgetary Support Estimate (TBSE)	318	2 999	2 658	3 468	2 871
Percentage TBSE (% of GDP)	0.38	0.65	0.61	0.75	0.59
GDP deflator (2000-02 = 100)	100	212	207	213	217
Exchange rate (national currency per USD)	48.93	56.81	55.63	57.29	57.51

.. 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 Philippines are: maize, rice, sugar, beef and veal, pig meat, poultry, eggs, bananas, coconut, mango and pineapple.

Source: OECD (2026), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Tariffs, tariff rate quotas (TRQs) and domestic market regulations are in place for major commodities. Tariff protection is the Philippines’ main trade policy tool. The simple average applied Most Favoured Nation (MFN) tariff on agricultural products was 11.24% in 2025 (compared to 5.84% for non-agricultural products) (Tariff Commission, 2025[1]). Tariff lines applied for agricultural commodities are ad valorem and range from 0% to 65% (UNCTAD TRAINS, 2024[2]).

Tariff rate quotas are applied to 14 agricultural products, with in-quota tariffs ranging from 15% to 50% and out-of-quota tariffs from 15% to 65% in 2025. Products covered by the TRQs include live swine, goats and poultry, as well as poultry meat, potatoes, coffee, maize, rice and sugar. Import licensing is required for all regulated products (including those under TRQs). Additionally, grains, grain products and sugar require export permits.

The Philippines Department of Agriculture (DA) has implemented several support programmes for rice producers. The National Food Authority (NFA) supports rice prices by buying buffer stocks at administered prices from domestic producers and by selling these stocks at subsidised prices to consumers. Budgetary support is provided for producers’ use of variable inputs, including seeds and fertilisers. Additional support is provided through subsidies for fixed capital formation, including credit facilitation, as well as programmes supporting the provision of agricultural equipment and facilities. 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 promoting the adoption of technologies like 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 reducing 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[3]).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[4]).

Recent policy developments

Domestic policy developments in 2025-26

General strategies and plans

In 2025, the Department of Agriculture (DA) updated its investment programming framework to support the For a Food-secure and Prosperous New Philippines (Para sa Masaganang Bagong Pilipinas, MBP) 2024–27 strategy. The revision covered the Public Investment Program 2023-28 and the Three-Year Rolling Infrastructure Program (TRIP) 2027-29, which identifies priority infrastructure projects over a rolling three-year period and aligns them with the medium-term budget framework. This update supports the implementation of the MBP by helping prioritise public investments in areas such as irrigation, post-harvest facilities, logistics, mechanisation and digital systems, and strengthens coherence between sector planning, infrastructure programming and annual budget preparation (Department of Agriculture, 2025[5]).

In parallel, several sector-specific plans and roadmaps were adopted or consolidated in 2025-26. These include efforts by the National Food Authority (NFA) to modernise rice storage and handling infrastructure, as well as the formal launch of the Philippine Rice Industry Roadmap 2025-35, which sets out long-term strategic directions for improving productivity, competitiveness and resilience in the rice sector, including through investments in infrastructure, technology adoption and value chain development (Philippine Council for Agriculture and Fisheries, 2025[6]). In addition, other sectoral strategies were developed, including the DA’s “White Revolution”, which seeks to improve the stability of the supply of vegetables and other high-value crops by improving production systems, logistics and market integration. Preparatory work also took place on industry-specific roadmaps such as the Abaca Industry Roadmap 2026-30, which outlines directions for developing the abaca value chain, with a focus on productivity, quality improvement and market development (Department of Agriculture, 2025[7]).

Legislative changes

In May 2025, the Philippine Agriculturists Act (Republic Act No. 12215) was enacted, establishing a regulatory framework governing agriculture professionals. The act introduces licensing and registration requirements, clarifies the scope of professional activities, and creates a Professional Regulatory Board of Agriculture under the Professional Regulation Commission. It also sets out requirements for continuing professional development and establishes minimum qualification standards for agriculture-related positions in the public sector (Congress of the Philippines, 2025[8]).

In September 2025, the Animal Industry Development and Competitiveness Act (Republic Act No. 12308) was enacted, providing a ten-year framework to support the development of the livestock, poultry and dairy sectors. The act created a new annual PHP 20 billion (USD 348 million) fund to finance public investment in animal production, animal health, genetics and biosecurity. Tariff revenue collected on imported livestock, poultry and dairy products will be used for this newly created fund. The Act strengthened the mandates of key implementing agencies such as the Bureau of Animal Industry, the Philippine Carabao Center and the National Dairy Authority, and established the Animal Emergency Response Task Force (USDA GAIN, 2025[9]).

Producer policies

In 2025, the expanded Rice Competitiveness Enhancement Fund (RCEF) became operational following the amendment of the Rice Tariffication Law adopted in December 2024, which increased the annual funding ceiling from PHP 10 billion (USD 174 million) to PHP 30 billion (USD 522 million). Financed through rice import tariff revenues, the newly expanded RCEF provides additional support options for rice farmers. The prior RCEF assisted with the distribution of certified seeds, farm mechanisation, access to credit and extension services. The new RCEF includes additional interventions such as soil health improvement, pest and disease management, solar‑powered irrigation systems, water‑impounding projects as well as expanded support for extension services, credit and financial assistance aimed at improving productivity and resilience in the rice sector.

In July 2025, the Price Protection Program (PPP) was introduced to address price volatility affecting agricultural producers. Initially implemented as a pilot in selected areas of the southern Philippines, the programme facilitates marketing arrangements with private buyers to strengthen market access for farmers’ co‑operatives and associations. These arrangements included indicative or pre-agreed pricing, collective marketing to consolidate volumes, and complementary access to credit and insurance, implemented in co-operation with the Agricultural Credit Policy Council and the Philippine Crop Insurance Corporation (Philippine Information Agency, 2025[10]).

In October 2025, a palay (unmilled rice) floor price mechanism was introduced to prevent sharp declines in farmgate prices during peak harvest periods. The measure mandates the DA to set and regularly adjust regional minimum procurement prices based on production costs and market conditions. Government agencies, including the National Food Authority (NFA) and local government units, are required to procure palay at or above the established floor price. While the NFA has previously operated administered buying prices for palay procurement, this measure formalises a government-wide floor price mechanism with defined adjustment criteria and compliance requirements across public entities. The measure followed earlier price stabilisation actions taken during the February 2025 rice food security emergency (see section on consumer policies below), which focused on moderating retail prices through the release of NFA buffer stocks, whereas the floor price mechanism addressed downward pressure on farmgate prices during the harvest period (Official Gazette, 2025[11]).

In 2025, input support measures for agricultural producers were expanded to mitigate rising production costs and support productivity. This included scaling up the distribution of hybrid corn seeds, fertilisers and fertiliser discount vouchers as well as a fuel assistance project to reduce operational costs for farmers. Input support was further integrated under Agri Asenso 2025, a framework initiative designed to co‑ordinate existing producer support, particularly in areas affected by weather-related shocks, market disruptions or elevated input prices. The initiative brought together the provision of rice, corn and vegetable seeds, fertiliser support and fuel assistance, alongside facilitated access to concessional agricultural credit and insurance-based compensation through the Philippine Crop Insurance Corporation (Department of Agriculture, 2025[7]).

Policies targeting the sector as a whole

In 2025, measures were taken to improve agricultural value chains and reduce losses for perishable products. The DA’s infrastructure programme included the construction of approximately 99 cold storage facilities nationwide, supported by an allocation of around PHP 3 billion (USD 52 million), with a mix of small modular units and larger installations in key production zones such as Camarines Sur, Occidental Mindoro and Nueva Ecija.

In parallel, the National Food Authority (NFA) advanced a major modernisation programme for rice storage and processing in 2025, involving repairs to existing warehouses, upgrades to drying facilities and the construction of new rice mills. The programme, supported by an investment envelope of around PHP 10 billion (USD 174 million), aims to expand NFA storage capacity by approximately 800 000 metric tonnes by 2026, thereby strengthening the agency’s ability to procure, store and manage rice stocks and improve the availability of post-harvest facilities linked to public procurement operations (Department of Agriculture, 2025[7]; USDA GAIN, 2025[12]).

In 2025, the DA assumed operational responsibility for farm-to-market road (FMR) projects and integrated these into the Three-Year Rolling Infrastructure Programme, TRIP 2027-29. Public access to project plans and progress information was expanded, and priority FMR routes were identified in co-ordination with regional stakeholders. Improved rural connectivity is expected to lower transaction costs, enhance access to markets and services, and support producer competitiveness in agricultural production areas (Department of Agriculture; Department of Public Works and Highways, 2025[13]).

In 2025, the DA continued to expand the Kadiwa ng Pangulo (KNP) programme, a government-supported initiative providing direct sales channels for agricultural products through designated outlets and mobile markets. Main developments in 2025 included:

• further expansion of Kadiwa outlets across local government units, including fixed stores and mobile markets

• strengthened support for aggregation, transport and basic post-harvest handling

• continued integration of Kadiwa into food distribution and price stabilisation efforts.

Biosecurity measures against African Swine Fever (ASF) were strengthened, building on the vaccination and control framework introduced in 2024. The rollout of the ASF vaccine was extended to additional priority areas under the amended national zoning and movement plan, alongside tighter animal movement controls and enhanced surveillance at the local level through the Bantay ASF sa Barangay programme. Compensation arrangements for pigs culled for disease control were maintained to support compliance and early reporting, with ASF-related interventions increasingly framed as part of the recovery of the swine sector.

Agricultural knowledge and advisory services were expanded in 2025, with the rollout of mobile soil laboratories and the expansion of soil diagnostics under the National Soil Health Program. These initiatives aim to improve nutrient management and input efficiency through enhanced soil analysis and farmer advisory services. Digital monitoring tools and producer registries were further developed through expanded data collection to support planning and programme coordination (Department of Agriculture, 2025[14]).

Consumer policies

In February 2025, a food security emergency for rice was declared in response to sustained increases in domestic retail prices and heightened price volatility. The declaration was made under the amended Agricultural Tariffication Act framework (Republic Act No. 12078). Acting on the recommendation of the National Price Coordinating Council, the declaration authorised the release of NFA milled rice buffer stocks to government agencies, local government units (LGUs) and Kadiwa outlets to support price stabilisation and manage public rice inventories ahead of the harvest season. The NFA planned to release 150 000 tonnes of rice, equivalent to about half of its buffer stock, over a six‑month period. The measure established operational procedures for stock releases to LGUs and was subsequently extended to additional beneficiary areas during the emergency period (Department of Agriculture, 2025[7]; USDA GAIN, 2025[15]).

More generally, consumer-oriented agricultural policies in the Philippines focused on moderating food prices and improving access to staple products in a context of elevated price volatility. A mix of price stabilisation instruments, targeted access to subsidised food, and enhanced market monitoring and transparency were used.

• The DA expanded the subsidised P20 rice programme, under which milled rice was sold at PHP 20 (USD 0.35) per kilogram through selected public distribution channels, notably Kadiwa stores. Targeted at low-income and other eligible households, the programme was extended in 2025 to include registered agricultural producers and formed part of broader efforts to moderate consumer food expenditure pressures.

• Maximum Suggested Retail Prices (MSRPs) and temporary price caps continued to be used to contain retail prices of selected agricultural products. These measures were applied primarily to imported rice, and, on a temporary basis, to selected vegetables such as onions, garlic and carrots, as well as to pork, during periods of supply tightness. MSRPs and temporary price caps were adjusted in line with market developments and supported by inter-agency price and supply monitoring mechanisms aimed at strengthening compliance and improving transparency in retail pricing. Monitoring efforts were reinforced through the use of Bantay Presyo, the DA’s market price monitoring system, which tracks retail prices across major trading centres nationwide. The information collected helped inform price stabilisation measures and guide enforcement activities in public markets (Department of Agriculture, 2025[16])..

Policies to support environmental sustainability in agriculture

In 2025, the Adapting Philippine Agriculture to Climate Change (APA) project began implementation, with increased Green Climate Fund disbursements supporting climate-resilient agriculture (CRA) services. Activities included capacity building, the delivery of localised climate information services and the promotion of CRA technologies among target farming communities. The project aims to reach over 1.25 million direct beneficiaries and 5 million indirect beneficiaries, primarily through the provision of climate information services, while promoting the adoption of climate-resilient agriculture practices across approximately 200 000 farms (Green Climate Fund, 2025[17]).

In parallel, waste reduction and organic recycling measures were advanced in 2025. The Philippine Council for Agriculture and Fisheries (PCAF), in collaboration with the Ecowaste Coalition and the DA, supported improved solid waste segregation and organic recycling practices within agricultural communities. Regional DA offices distributed composting facility technology packages to farmer co‑operatives and local governments, promoting biodegradable waste recovery and organic fertiliser production. These measures complement the Ecological Solid Waste Management Act (Republic Act No. 9003), which guides waste reduction, reuse and recycling practices relevant to agricultural systems (Official Gazette, 2025[18]; Philippine Council for Agriculture and Fisheries, 2025[19]).

Trade policy developments in 2025-26

The amended Rice Tariffication Law adopted at the end of 2024 was put into effect in 2025. The law allows the President to adjust rice import policy in response to market developments, including temporarily reducing tariff rates or suspending imports. This framework was used in September 2025, when the government announced a 60‑day suspension of rice imports during the harvest season, with the aim of supporting farm gate prices and avoiding additional downward pressure from imports (Official Gazette, 2025[20]). The import suspension was subsequently extended until December 2025, following a further presidential decision to maintain the measure beyond the initial 60-day period (Official Gazette, 2025[21]).

In late 2025, the Philippines adopted a new rice tariff mechanism effective from January 2026, introducing a flexible tariff range of 15% to 35%, with adjustments tied to movements in export prices of Viet Nam 5% broken rice. Under this system, tariff rates are set within predefined price intervals and adjusted quarterly. Tariffs increase by 5 percentage points for every 5% decline in international prices relative to a reference value of USD 387/MT up to a maximum of 35% when prices fall below USD 315/MT. Conversely, tariffs decrease by five percentage points for every 5% increase in international prices. Implementation is overseen by an inter-agency mechanism responsible for monitoring international price developments and applying tariff adjustments within the defined parameters (Official Gazette, 2025[22]; USDA GAIN, 2025[23]).

In 2025, the Philippines adjusted import restrictions in response to evolving animal health risks. Temporary bans on poultry and poultry products were updated following outbreaks of highly pathogenic avian influenza, including new restrictions on imports from New Zealand, several US states, Türkiye and Belgium, alongside the lifting of earlier bans on France and Minnesota (US). Additional adjustments were made to restrictions on commodities derived from foot-and-mouth disease susceptible animals, including new bans on Germany, Hungary, Korea and the Slovak Republic and the removal of restrictions on Russia. In response to African swine fever developments, a temporary ban was also introduced on imports of pigs and pig products from Chinese Taipei (Department of Agriculture, 2025[24]).

In late 2025, the DA and the Sugar Regulatory Administration reaffirmed a moratorium on sugar imports, initially introduced in October 2025, at the start of the milling season, indicating that it would remain in place at least until the end of the milling season and potentially longer, subject to developments in domestic stock levels. The measure was subsequently extended into 2026, with the stated objective of supporting local producers and prioritising domestic supply (Department of Agriculture, 2025[25]).

Over the same period, a temporary moratorium on molasses imports was introduced following a marked increase in imported volumes alongside rising domestic production. The measure took effect on 3 October 2025 and was initially scheduled to remain in place until 31 December 2025, subject to review based on domestic stock levels. In November 2025, the authorities extended the molasses import moratorium until March 2026, pending further assessment of inventory conditions and market developments (USDA GAIN, 2025[26]).

In November 2025, the United States introduced exemptions from its reciprocal tariff measures for a wide range of Philippine agricultural products that are not produced domestically in significant quantities. Products covered by the exemptions included coconut and coconut products, fruit juices, processed pineapples, desiccated coconuts, bananas and other tropical fruits, tuna fillets and confectionery items, among others, with estimates suggesting that over USD 1 billion of agricultural exports would no longer be subject to US reciprocal tariffs (Ministry of Industry and Trade, Vietnam, 2025[27]).

In 2025, the Philippines submitted a formal application to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a plurilateral free trade agreement linking 12 Asia-Pacific and transregional economies. The CPTPP includes tariff-reduction commitments covering agricultural and agri-food products, as well as disciplines on sanitary and phytosanitary (SPS) measures, customs procedures and regulatory co-operation. Accession, once concluded, would imply progressive tariff reductions and regulatory alignment across a wide range of agricultural products, expanding preferential market access for Philippine exports while requiring adjustments to domestic trade and regulatory frameworks in line with the agreement’s provisions (PortCalls, 2025[28]).

Policy context

Key economic and agricultural statistics

The Philippines is a mid-size country in terms of land area, but with a population of around 116 million, it is among the most populous countries in the world. In 2024, at USD 11 794 in purchasing power parity (PPP), GDP per capita accounts for around 37% of the average GDP per capita of all countries analysed in this report (Table 24.2). Overall, the Philippines’ economy is well integrated into international markets as measured by a ratio of trade to GDP of 22% in 2024.

Agriculture remains an important sector in the Philippines, but the sector’s 21% 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 24.2. Philippines: Contextual indicators

	Philippines		International comparison
	2000*	2024*	2000*	2024*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	268	1 366	0.7%	0.8%
Population (million)	80	116	1.8%	2.1%
Land area (thousand km2)	298	298	0.4%	0.4%
Agricultural area (AA) (thousand ha)	11 234	12 723	0.4%	0.4%
			All countries1
Population density (inhabitants/km2)	265	386	52	64
GDP per capita (USD in PPPs)	3 366	11 794	9 508	31 740
Trade as % of GDP	44.9	22.5	12.3	15.0
Agriculture in the economy			All countries1
Agriculture in GDP (%)	13.9	9.1	3.0	3.6
Agriculture share in employment (%)	35.8	21.2	-	-
Agro-food exports (% of total exports)	4.0	9.6	6.4	8.3
Agro-food imports (% of total imports)	7.3	15.1	6.1	7.5
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	62.4	61.3	62.1	60.4
Livestock in total agricultural production (%)	37.6	38.7	37.9	39.6
Share of arable land in AA (%)	44.8	43.9	33.0	34.0

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 strong and stable economic growth, averaging around 6% annually, alongside comparatively low and gradually declining unemployment rates, which fell to approximately 2% in 2019 (Figure 24.4). The COVID-19 pandemic led to a sharp economic contraction of around 10% in 2020, accompanied by a temporary increase in unemployment. The economy rebounded in 2021 with GDP growth reaching 5.7% and accelerated further to 7.6% in 2022 before moderating to 5.5% in 2023 and 5.7% in 2024. Inflation was more volatile over the period. After lower rates in 2019 and 2020, inflation rose to 4% in 2021 and peaked at close to 6% in 2023, before easing more recently.

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 24.5). 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 47% of the total in 2024. In turn, processed products for the industry (mainly crude coconut oil) constitute an important export category, accounting for 41% of agro-food exports, followed by primary products for final consumption (mainly fruits 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. In 2024, both agro-food imports and exports increased again. Imports were driven by higher rice purchases, while exports recovered on the back of increased shipments of coconut oil, both crude and non-crude.

Between 2014 and 2023, agricultural production in the Philippines grew at an average annual rate of just 0.1%, significantly below the global average of 1.8% (Figure 24.6). This modest growth was primarily driven by an above-average increase in intermediate inputs (0.5% per year), alongside a small positive contribution from primary factors, such as land, labour or capital (0.1% per year). However, total factor productivity, which reflects gains from innovation, technological improvements and efficiency in resource use, declined at an average rate of -0.5% per year, indicating a negative contribution to overall growth.

Agriculture remains the largest consumer of water, accounting for 76% of total water use in 2024. In contrast, the sector’s share in total energy abstractions remains low at just 0.4%. The country’s nitrogen balance remained relatively stable, increasing slightly in recent years. However, both nitrogen and phosphorus balances remain high compared to world averages.

Table 24.3. Philippines: Productivity and environmental indicators

	Philippines		International comparison
	1991-2000	2014-23	1991-2000	2014-23
			World
TFP annual growth rate (%)	0.3%	-0.5%	1.8%	0.8%
			OECD average
Environmental indicators	2000*	2024*	2000*	2024*
Nitrogen balance, kg/ha	54.0	54.4	32.3	29.0
Phosphorus balance, kg/ha	8.3	5.4	3.3	2.3
Agriculture share of total energy use (%)	0.4	0.4	1.7	2.0
Agriculture share of GHG emissions (%)	29.2	..	8.7	10.3
Share of irrigated land in AA (%)	8.3	9.3	-	-
Share of agriculture in water abstractions (%)	84.5	76.3	46.1	47.7
Water stress indicator	..	..	..	..

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[29]).

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[29]).

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[29]). 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 174 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 Philippine Carabao Center 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 24.4. 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

[8] Congress of the Philippines (2025), Republic Act No. 12215, May 29, 2025, https://lawphil.net/statutes/repacts/ra2025/ra_12215_2025.html.

[16] Department of Agriculture (2025), Administrative circulars on Maximum Retail Price, https://www.da.gov.ph/laws-and-issuances/administrative-circulars/.

[14] Department of Agriculture (2025), DA ramps up mobile soil labs usage to boost yields, cut farm costs, https://www.da.gov.ph/da-ramps-up-mobile-soil-labs-usage-to-boost-yields-cut-farm-costs/.

[25] Department of Agriculture (2025), DA, SRA extend sugar import ban, tighten rules to shield local farmers, https://www.da.gov.ph/da-sra-extend-sugar-import-ban-tighten-rules-to-shield-local-farmers/.

[7] Department of Agriculture (2025), Department of Agriculture, https://www.da.gov.ph/.

[24] Department of Agriculture (2025), Memorandum Orders, https://www.da.gov.ph/laws-and-issuances/memorandum-orders/.

[5] Department of Agriculture (2025), Special order 1140, https://www.da.gov.ph/wp-content/uploads/2025/07/so1140_s2025.pdf.

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

[13] Department of Agriculture; Department of Public Works and Highways (2025), “Joint Memorandum Circular No. 01”, https://www.da.gov.ph/wp-content/uploads/2025/04/jmc01_s2025.pdf.

[17] Green Climate Fund (2025), “Adapting Philippine Agriculture to Climate Change (APA)”, https://www.greenclimate.fund/project/fp201.

[27] Ministry of Industry and Trade, Vietnam (2025), Over US$1 Billion Worth of Philippine Agricultural Exports Exempted From U.S. Tariffs, https://vntr.moit.gov.vn/news/over-us1-billion-worth-of-philippine-agricultural-exports-exempted-from-us-tariffs#:~:text=On%20November%2018%2C%20Philippine%20officials,of%2Dliving%20burden%20on%20Americans.

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

[21] Official Gazette (2025), Executive order No 102, s. 2025, https://www.officialgazette.gov.ph/2025/10/30/executive-order-no-102-s-2025/.

[22] Official Gazette (2025), Executive Order No 105, s. 2025, https://www.officialgazette.gov.ph/2025/11/07/executive-order-no-105-s-2025/.

[20] Official Gazette (2025), Executive Order No 93, s. 2025, https://www.officialgazette.gov.ph/2025/08/29/executive-order-no-93-s-2025/.

[11] Official Gazette (2025), “Executive Order No. 100, s. 2025”, https://www.officialgazette.gov.ph/2025/10/25/executive-order-no-100-s-2025/.

[18] Official Gazette (2025), Republic Act No 9003, https://www.officialgazette.gov.ph/2001/01/26/republic-act-no-9003/.

[19] Philippine Council for Agriculture and Fisheries (2025), PCAF, Ecowaste Coalition launch partnership for solid waste management amid Zero Waste Month Celebration, https://pcaf.da.gov.ph/index.php/2025/01/03/pcaf-ecowaste-coalition-launch-partnership-for-solid-waste-management-amid-zero-waste-month-celebration/.

[6] Philippine Council for Agriculture and Fisheries (2025), Philippine Rice Industry Roadmap 2025-2035 launched at National Stakeholders Conference, https://pcaf.da.gov.ph/index.php/2025/12/01/philippine-rice-industry-roadmap-2021-2035-launched-at-national-stakeholders-conference/.

[10] Philippine Information Agency (2025), DA rolls out price protection program for farmers, https://pia.gov.ph/news/da-rolls-out-price-protection-program-for-farmers/.

[28] PortCalls (2025), “PH formally applies to join Trans-Pacific free trade agreement”, https://portcalls.com/ph-formally-applies-to-join-trans-pacific-free-trade-agreement/.

[1] Tariff Commission (2025), Tariff Commission, https://www.tariffcommission.gov.ph/.

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

[3] 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.

[15] USDA GAIN (2025), “Food Security Emergency on Rice Declared in the Philippines”, https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Food%20Security%20Emergency%20on%20Rice%20Declared%20in%20the%20Philippines%20_Manila_Philippines_RP2025-0008.pdf.

[9] USDA GAIN (2025), Philippine President Signs the Animal Industry Development, https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Philippine%20President%20Signs%20the%20Animal%20Industry%20Development%20and%20Competitiveness%20Law_Manila_Philippines_RP2025-0045.pdf.

[23] USDA GAIN (2025), Philippines Implements Quarterly Rice Import Tariff Adjustment Based on International Price Triggers in 2026, https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Philippines%20Implements%20Quarterly%20Rice%20Import%20Tariff%20Adjustment%20Based%20on%20International%20Price%20Triggers%20in%202026_Manila_Philippines_RP2026-0004.

[26] USDA GAIN (2025), Philippines Issued Moratorium on Molasses Imports, https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Philippines%20Issued%20Moratorium%20on%20Molasses%20Imports_Manila_Philippines_RP2025-0051.pdf.

[12] USDA GAIN (2025), “Philippines to Impose 60-Day Rice Import Suspension Starting 01 September 2025”, https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Philippines%20to%20Impose%2060-Day%20Rice%20Import%20Suspension%20Starting%2001%20September%202025_Manila_Philippines_RP2025-0037.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.