The World Bank has approved a $1-billion loan for a major program aimed at raising farm productivity, improving food security, and making the Philippines’ agrifood systems more resilient to climate change.
In a statement released Saturday, the Washington-based lender said its Board of Executive Directors has approved funding for the Philippines Sustainable Agricultural Transformation Project (PSAT), a nationwide initiative designed to push wide-ranging reforms across the agriculture sector.
The project is expected to benefit at least five million Filipino farmers by helping modernize farming practices, expand market access, improve nutrition security, and generate more jobs in rural communities.
“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.
Under PSAT, farmers will be introduced to climate-smart technologies and practices, including better seed and nutrient management, water-saving methods, greenhouse gas-reducing techniques, and measures to cut post-harvest losses.
The program will also promote crop diversification, improve access to export certification laboratories for high-value agricultural products, strengthen logistics, and open more market opportunities for Filipino farmers and agribusinesses.
A key feature of the initiative is a new digital voucher system that aims to speed up and improve the transparency of farm input distribution, while ensuring that public spending is tied to measurable gains in yields and incomes.
Beyond farm-level interventions, the project will also support the continued modernization of the Department of Agriculture through reforms in budgeting, procurement, and data management.
Mio Takada, World Bank Senior Agriculture Specialist, said the initiative is designed to produce concrete gains for both producers and consumers.
“This new initiative aims to deliver tangible benefits for farmers and consumers alike,” Takada said.
“Farmers will see higher incomes through stronger agricultural productivity — driven by better seeds, increased mechanization, and more efficient fertilizer use — as well as greater diversification, improved climate resilience, reduced post-harvest losses, and growth in agrifood exports. Better use of public resources will further amplify these gains,” she added.
The World Bank said the financing will be implemented through a Program-for-Results scheme, an instrument that supports government-led programs by linking loan disbursements to the achievement of specific and pre-agreed development results.
