The World Bank has approved a $1 billion loan to support agricultural reforms in the Philippines, aiming to transform the country’s farming sector.
The funding, cleared by the lender’s Board of Executive Directors, will back the Philippines Sustainable Agricultural Transformation (PSAT) program, which is designed to improve farming practices, enhance food security, and generate employment opportunities. The project is expected to benefit at least five million Filipino farmers.
“This is a transformative investment in Philippine agriculture,” said Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia, and Brunei.
“By putting in place the right policies, systems, and partnerships, these projects will make agriculture more productive, competitive, and climate smart. Farmers will be better equipped to earn more, withstand climate shocks, and bring safer, more affordable food to Filipino households,” he added.
The program will promote climate-smart farming, enhance market access, support exports, and introduce a digital voucher system to accelerate the delivery of farm inputs. It will also assist the Department of Agriculture in improving budgeting, data systems, and procurement processes.
Officials said the initiative represents a significant step toward modernizing Philippine agriculture and building resilience against climate-related challenges.
