Philippine agriculture expanded 3.1 percent in 2025, its fastest growth in eight years, underscoring how policy interventions helped cushion the sector from the impact of nearly two dozen storms that battered the country in the second half of the year.
Data from the Philippine Statistics Authority showed last year’s growth as a break from years of volatility. Since the 4.2 percent expansion in 2017, agricultural output has swung between weak expansions and outright contractions, routinely undermined by extreme weather, animal diseases, and plant pests.
The farm sector’s expansion last year suggests those long-standing vulnerabilities are starting to be addressed, albeit gradually.
“The 2025 performance of agriculture is both encouraging and instructive—it tells us what is working and where we need to sharpen our approach,” Agriculture Secretary Francisco P. Tiu Laurel Jr. said. “We are using these lessons to fine-tune our programs and accelerate investments in smarter, climate-resilient, and more productive agriculture.”
Growth was anchored on stronger crop output. Palay production rose 3.5 percent, while corn increased 3.4 percent, helping stabilize domestic food supply.
The standout was sugar, which posted a 56 percent surge on the back of record production in 2025, easing price pressures and improving incomes in key producing regions. Coffee and cacao also recorded double-digit gains, reflecting rising demand and better farm-level practices.
The gains came despite persistent climate risks, pointing to the role of government support.
For 2026, budget approved by President Ferdinand Marcos Jr. allocated additional funds for farm-to-market roads, cold storage facilities, and drying systems, aimed at reducing post-harvest losses and lowering logistics costs. Resources were also directed toward controlling avian influenza and African Swine Fever, two diseases that have repeatedly disrupted livestock production, alongside financial assistance for farmers and fisherfolk.
The passage of new laws that increase funding for animal industry development and the rice industry competitiveness should also boost prospects for agriculture in the coming years.
While agriculture still accounts for a smaller share of the economy compared with services, its faster growth has outsized implications. Stronger farm output supports rural incomes, helps contain food inflation, and reduces the economy’s vulnerability to supply shocks—suggesting that steady investment in resilience may finally be paying off.
