ADB approves fresh loan to support Philippine agriculture

MANILA, Philippines — The Philippines secured another loan from the Asian Development Bank to fund programs meant to ensure reforms take hold within the country’s long-neglected agriculture sector. 

In a statement on Friday, the ADB said that the $500 million loan will support subprogram 2 of the Competitive and Inclusive Agriculture Development Program. This is targeted towards developing the local agriculture sector through reforms in trade policy and regulatory framework. 

“This new loan aims to support the Philippines’ efforts to attain food security by building a competitive and inclusive agriculture sector that is characterized by improved efficiency, enhanced diversity, strengthened climate resilience, and higher farm incomes,” said Takeshi Ueda, ADB’s Principal Natural Resources and Agriculture Economist for Southeast Asia.

This new loan aims to enhance social protection measures for rural families, among others, since agriculture workers often live in abject poverty. 

The loan will support rice buffer stock management for emergencies, unconditional cash transfers, and adequate financing for the country’s rice industry.

Ensuring food security in the Philippines is crucial these days as rising food and commodity prices and supply shortages have left Filipinos shortchanged.

Historically, agriculture accounts for 10% of the Philippines’ gross domestic product and employs about a quarter of Filipino workers. But despite its important role in the economy, the farm sector has been left behind by other industries. 

This new loan also supports policy measures introduced in the first loan subprogram back in 2020, under the former Duterte administration.