The Asian Development Bank (ADB) has approved a US$500mn policy-based loan to the Government of the Philippines to expand economic opportunities in agriculture while ensuring near- to long-term food security for the population
The loan supports Subprogramme 2 of the Competitive and Inclusive Agriculture Development Programme, which aims to further develop the agriculture sector with trade policy and regulatory framework reforms. It also seeks to enhance public services and finance for the sector, and social protection for rural families affected by the programme’s reforms.
The second subprogramme continues support for policy measures introduced in the first subprogramme approved in 2020. Those policy measures are aligned with the recently launched Philippine Development Plan, 2023–2028. Building on the rice trade liberalisation under Subprogramme 1, this new programme supports effective rice buffer stock management for emergency situations and relief programmes to ensure food security in the Philippines.
The loan promotes new government initiatives, including the provision of unconditional cash transfers to smallholder rice farmers and concessional loans to agriculture- and fishery-based micro and small enterprises and smallholder farmers and fisherfolk under Covid-19 recovery and other credit assistance programmes. The government provides substantive financing through the Rice Competitive Enhancement Fund to strengthen the country’s rice sector.
In addition, the second subprogramme will also support the government in further enhancing planning and management of land use and water resources, ensure adequate financing to enhance the competitiveness of the country’s rice industry under a liberalised trade regime, and strengthen government assistance to the agriculture sector.
