Philippine Agriculture Sector Achieves Strongest Growth in Eight Years
The Philippines' agriculture industry has entered 2026 with renewed momentum after posting a 3.1 percent growth rate in 2025, its fastest expansion in eight years. Agriculture Secretary Francisco Tiu Laurel Jr. announced this positive development on Monday, February 9, 2026, highlighting the sector's resilience and early progress from ongoing reforms.
Growth Amidst Challenges and Export Recovery
This notable growth occurred despite significant challenges, including 23 storms hitting the country in 2025, with 22 of these arriving during the crucial second-half harvest period. Secretary Laurel emphasized that the expansion demonstrates early gains from deliberate sectoral reforms, even as risks from adverse weather conditions and historical underinvestment persist.
The agricultural export sector showed remarkable recovery, led by:
- Rebounding banana shipments
- Increasing demand for various tropical fruits
- Philippine avocados entering the Japanese market for the first time
- Durian gaining access to new export destinations
Domestically, onion prices have stabilized after years of volatile fluctuations, contributing to improved food security and market predictability.
Strategic Focus on Profitability and Investment
"These are early gains from a longer and deliberate reset of the sector," Secretary Laurel stated, outlining the administration's strategic approach centered on making food production profitable. He articulated three key objectives:
- Ensuring farmers and fisherfolk achieve profitability
- Reclaiming agriculture's role as a serious economic driver
- Building hope and futures that attract a new generation to the sector
To support this vision, the Marcos administration has approved one of the largest agriculture budgets in recent years. These funds are being allocated to critical infrastructure projects including:
- Farm-to-market roads
- Warehouses and food hubs
- Post-harvest facilities and dryers
- A national command center to improve coordination
"These are long-game investments, and they matter," Laurel emphasized, acknowledging their importance for sustainable sector development.
Addressing Long-standing Weaknesses and Future Outlook
Despite current budget increases, Secretary Laurel acknowledged that present spending levels remain insufficient to address the sector's deep-rooted weaknesses. The Department of Agriculture estimates that the sector requires P400 billion to P500 billion annually, sustained across two administrations, to effectively:
- Reverse decades of underinvestment
- Rebuild institutions like the National Food Authority
- Strengthen resilience against external shocks
Short-term measures have already yielded positive results, including:
- Falling rice prices in 2025 that reduced inflationary pressure
- Nationwide expansion of the Benteng Bigas, Meron Na program that purchases rice directly from local farmers
- Progress from planning to construction of cold storage projects and food hubs, helping reduce post-harvest losses
Looking forward, Secretary Laurel expressed cautious optimism based on historical data, noting that agriculture has grown by more than three percent in eight of the past twenty years. However, he stressed that long-term sustainable growth depends fundamentally on transforming agriculture into a viable investment sector that can retain the next generation in farming and fishing activities.
The 3.1 percent growth in 2025 represents a significant milestone for Philippine agriculture, signaling potential for continued recovery and development as strategic investments and reforms take deeper root across the sector.
