Secretary Francisco Tiu Laurel, Jr. highlighted the important roles that government, the private sector, and financial institutions play in transforming the farming sector at a World Bank event last week.
The DA chief was one of the panelists in the World Bank flagship event on “Agriculture and Food as an Engine of Sustainable Growth and Jobs,” held in Washington, DC, on October 23 and moderated by BBC news presenter Rajini Vaidyanathan.
Secretary Tiu Laurel underscored the importance of dialogue in the administration President Ferdinand Marcos, Jr. in determining policies that would address farmers and fisherfolk’s concerns and in ensuring food security. He said financial institutions, including state-owned lenders Land Bank of the Philippines and the Development Bank of the Philippines, provide assistance in addressing the credit and funding needs of farmers.
“The World Bank and financial institutions are a big part of the equation in helping transform Philippine agriculture,” said the DA chief, noting the substantial funding needs to modernize Philippine agriculture and make it sustainable. Irrigation alone requires P1.2 trillion to supply water to 1.2 million of arable land.
In response to the question on what governments can do to create a better agricultural production system, Secretary Tiu Laurel said that for the Marcos administration, the main aim is for farmers to increase yields and cropping intensity to increase income and become more bankable. To realize this, he said the DA needs to utilize various technologies, such as the right seeds for the appropriate season, adapting to new farming techniques like alternate wet and dry systems, and even changing the cropping calendar.
The reception from farmers regarding the changes to empower them has been quite positive, as long as there is government support, which includes some subsidies, financing, and insurance. Clustering smallholder farms has been a challenge, but as long as the package or menu we offer is very attractive, everyone will be willing to join a cluster, cooperative, or association.
Secretary Tiu Laurel stressed that climate change has always posed a significant challenge for the Philippines, with an average of 23 typhoons every year. We have just come from El Niño and are now encountering La Niña. We need to invest heavily in the infrastructure and logistics of our food systems, such as the storage of water, grains, meat, and vegetables.
At the same forum, World Bank Group President Ajay Banga announced a strategic pivot in its approach to agribusiness, with a goal to create a comprehensive ecosystem for the industry. This shift will combine a new way of working with a new level of investment—doubling its agri-finance and agribusiness commitments to $9 billion annually by 2030.
While in Washington, DC, the Secretary also met with World Bank Group officials handling the East Asia and Pacific region, agriculture, food, and the environment. Together with DOF Secretary Ralph Recto, he engaged in a high-level dialogue with World Bank officials, securing support for the Philippines’ agriculture sector and human capital development, alongside efforts to attract more private investments.
The Secretary also paid courtesy visits to USDA Secretary Thomas Vilsack, US Ambassador to the Philippines Mary Kay Carlson, and Philippine Ambassador to the US Jose Manuel Romauldez. He had an opportunity to meet with counterparts at the US National Association of State Departments of Agriculture (NASDA) as well as US private sector representatives under the Business Council for International Understanding (BCIU). Accompanying the Secretary in these activities were Undersecretary Jerome Oliveros, Assistant Secretary Arnel de Mesa, PFDA General Manager Glen Pangapalan, Agriculture Counsellor Lupiño Lazaro, Jr., and Executive Assistant Edgar Superio, Jr. ###
