The Department of Agriculture cracked down on underperforming contractors and suppliers in 2025, imposing roughly P81 million in penalties for delayed deliveries of farm inputs and slow implementation of government funded projects that disrupted key agricultural programs.
The sanctions were compiled by the agency’s regional field offices following a directive issued on Feb. 18 by Agriculture Secretary Francisco P. Tiu Laurel Jr.. The order required all regional offices to submit a detailed accounting of liquidated damages linked to violations of supply and infrastructure contracts.
The submissions revealed a recurring pattern of late deliveries of fertilizers, seeds, farm equipment and construction materials, as well as delays in building agricultural facilities and irrigation works. Such setbacks can disrupt planting schedules and weaken government programs meant to boost farm productivity.
In response, the DA imposed penalties on more than 100 suppliers and contractors engaged by regional offices for procurement of farm inputs and the construction of agricultural infrastructure.
Northern Luzon recorded the largest penalties, reflecting the heavy concentration of government supported farming activities in the region. Regional Field Office II logged the biggest total at P28.5 million, followed by RFO I with P18.2 million and RFO III with P15.4 million.
In Region I, the largest single penalty reached P14.1 million and was imposed on La Filipina Uy Gongco Corp. for delayed delivery of complete fertilizer 14-14-14, a critical input during planting periods. Leads Agricultural Products Corp. also paid P1.4 million in penalties for late delivery of 29,278 bags of hybrid seeds.
Region II recorded substantial penalties linked to farm inputs. Liquidated damages reached P20.1 million for seed deliveries and P5.9 million for fertilizers. Among the companies cited were Farmex Corp., Jedeco Trading Corp., SL Agritech Corp. and fertilizer supplier Universal Harvester Inc..
In Region III, infrastructure delays also drew sanctions. Verlin Konstrukt Inc. incurred P1 million in penalties for delays in supplying labor and materials for a biosecure swine finisher facility. Agri Component Corp. was penalized P4.5 million for delays in two Rice Processing System projects.
Even smaller regions reported violations. In the Cordillera Administrative Region, Modern Times Enterprises, Inc. incurred P643,490 in penalties after delivering only 39,575 out of 80,603 bags of inorganic fertilizer ordered by the government, leaving more than 41,000 bags undelivered.
Except for Metro Manila and the newly formed Negros Island Region, all RFOs submitted their reports as directed by the DA chief. The liquidated damages amounted to P3.1 million in Region IV-A, P5.8 million in Region IV-B, P1.0 million in Region V, P5.2 million in Region VI, P597,015 in Region VII, P295,187 in Region VIII, P3.9 million in Region IX, P1.8 million in Region X, P453,156 in Region XI, P7.1 million in Region XII, and P811,822 in Region XIII.
The contracts involved projects under several flagship DA programs including rice, corn, livestock, organic agriculture, the Quick Response Fund and the Special Area for Agricultural Development.
Tiu Laurel said stricter enforcement of procurement rules is meant to protect public funds and ensure that government assistance reaches farmers on time.
“Every peso entrusted to us must translate into real support for our farmers and fisherfolk,” he said. “Timely delivery of inputs and projects helps farmers improve productivity, increase income and contribute to the country’s food security.”
