The Department of Agriculture (DA) is optimistic about a robust recovery in the agricultural sector this year, especially in rice production, following substantial losses in 2024. In a recent statement, DA Assistant Secretary Arnel de Mesa set a goal for the rice sector to rebound and achieve a production of 20.4 million metric tons. This comes after a decline in palay output to 19.08 million metric tons last year from 20.06 million metric tons in 2023, attributed to a series of natural disasters including El Niño, multiple weather disturbances, pests, a volcanic eruption, and La Niña.
De Mesa noted that current conditions are favorable with no major calamities reported, except for minor ones. He highlighted the role of rainfall during what is typically the dry season, which aids in agricultural activities. The government is stepping up its support for farmers with increased funding through the General Appropriations Act and the amended Rice Tariffication Law. A significant portion of this funding will be directed towards mechanization and seed provision, crucial for the recovery of the rice sector.
The amended Rice Tariffication Law has increased the Rice Competitiveness Enhancement Fund to PHP30 billion, up from PHP10 billion. This fund will be used for various initiatives including extension and training programs, financial assistance for rice farmers, credit facilities, soil improvement, solar-powered irrigation systems, and water impounding projects. Additionally, PHP9 billion is allocated for farm mechanization, and PHP6 billion for high-quality rice seeds.
Despite recent reports of frostbite affecting some agricultural commodities in Northern Luzon, De Mesa reassured the public that these would have minimal impact on overall production and vegetable prices. However, the agriculture and fisheries sector as a whole faced a loss of 2.18 million metric tons valued at PHP57.78 billion last year due to natural calamities and African swine fever. Imports of 4.78 million metric tons of rice and 1.3 million metric tons of meat helped meet the demand.
According to the Philippine Statistics Authority, the agriculture and fisheries sector saw a contraction of 2.2 percent to PHP483.58 billion in the last quarter of 2024. During the same period, crop production decreased by 3.1 percent to PHP281.55 billion, livestock by 6.2 percent to PHP67.67 billion, and fisheries by 2.1 percent to PHP62.55 billion. The only positive growth was in the poultry subsector, which increased by 6.1 percent to PHP71.81 billion.