WASHINGTON, March 27, 2026-At least five million farmers are expected to benefit from a new initiative designed to boost agricultural productivity, promote diversification, and enhance the climate-resilience of agrifood systems across the Philippines.
The World Bank's Board of Executive Directors has approved funding for the Philippines Sustainable Agricultural Transformation Project (PSAT) to support sector-wide reforms that modernize agricultural practices, enhance food and nutrition security, and create jobs.
"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."
PSAT will boost productivity and resilience in rice-based farming by prioritizing climate-smart practices, including improved seed and nutrient management, water-saving and greenhouse-gas-reducing techniques, and post-harvest loss reduction. This is particularly critical in a country where rice dominates the cropped area and extreme weather events such as typhoons and floods are frequent. By promoting commercialization, productivity, and private sector investment, PSAT will help create more jobs and a more inclusive agrifood sector.
PSAT will help farmers diversify into vegetables, fruits, livestock, and aquaculture, while improving market access and modernizing logistics. By promoting mechanized farming through farmer cooperatives and associations, it will drive rural business growth and economies of scale. A new digital voucher system will deliver farm inputs faster and more transparently, linking public spending to measurable gains in yields and incomes.
The program will also boost agrifood exports by making high-value crops and export certification laboratories more accessible. It will further modernize the Department of Agriculture by strengthening budgeting, data management, and procurement practices.
"This new initiative aims to deliver tangible benefits for farmers and consumers alike. 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," said Mio Takada, World Bank Senior Agriculture Specialist.
The World Bank has committed US$1 billion to support PSAT. This funding is structured as a Program-for-Results (PforR) operation, a World Bank financing instrument that supports government-led development programs by linking disbursements directly to the achievement of specific, pre-agreed results.
