A SENATE Finance subcommittee panel approved the proposed P198.4 billion budget of the Department of Agriculture (DA) and its attached agencies and corporations for 2027.
During the budget hearing on Wednesday, senators pressed agriculture officials to address mounting challenges facing farmers and fisherfolk, including El Niño-related losses, expensive farm inputs, inadequate water infrastructure and market imbalances.
Sen. Francis “Kiko” Pangilinan, chairman of the Senate Committee on Agriculture, Food and Agrarian Reform, questioned why farmers continued to struggle despite billions of pesos in government funding for the sector.
“The agriculture sector has a budget of roughly P200 billion, so why are our farmers still struggling?” Pangilinan said.
He cited data presented during the hearing showing that farmers earned an average daily basic pay of P387.90, saying the government should measure agricultural spending not only by the size of its budget but also by its impact on farmers’ incomes.
Pangilinan also raised concerns over agricultural smuggling, the country’s dependence on rice imports, the welfare of small fisherfolk and preparations for a severe El Niño.
Senate President Sherwin Gatchalian, Senate Majority Leader Juan Miguel Zubiri and Sens. Joseph Victor “JV” Ejercito, Erwin Tulfo and Imee Marcos also called for interventions to address the sector’s immediate and long-term needs.
Among the issues raised were P6.87 billion in reported El Niño-related agricultural damage, the need for rainwater impounding facilities, high fertilizer costs and trader markups, and the influx of imported meat that has put pressure on local producers.
Zubiri urged the DA to take concrete steps to curb excessive meat imports and arrest the sharp decline in hog farmgate prices, putting “the livelihoods of our small hog raisers at the breaking point.” Zubiri said hog farmgate prices had fallen from around P170 to P185 per kilo in previous years to between P90 and P120 per kilo. Small producers account for about 80 pet entrance of the country’s hog industry, he added.
Agriculture Secretary Francisco Tiu Laurel Jr. said the department supported local hog raisers but faced restrictions under international trade agreements and World Trade Organization (WTO) rules that limit the government’s ability to impose unilateral import bans.
He proposed legislation that would give the department broader authority to adjust import volumes when the market faces oversupply.
Tiu Laurel added the DA was preparing to resume implementing farm-to-market road projects after taking over responsibility for them from the Department of Public Works and Highways (DPWH) last year.
He said conditions under the 2026 General Appropriations Act, including establishing offices and hiring personnel, delayed implementation.
The release of a special allotment release order (SARO) also came only in September and October, he said.
For 2027, the DA plans to begin pre-procurement activities based on the proposed National Expenditure Program to speed up implementation once the budget is approved, he said.
Tiu Laurel said P23 billion of the P33 billion allocated for the projects had been released.
The department was also working to strengthen the capacity of the DA’s Bureau of Agricultural and Fisheries Engineering, which will oversee construction of the roads, he added.
Tiu Laurel said construction costs could reach P15 million per kilometer amid rising fuel and commodity prices.
Under the proposed National Expenditure Program, the DA was allocated P198.4 billion for 2027, down 8 percent from its P215.7 billion budget in 2026.
Most of the department’s attached agencies also face lower allocations, while the National Tobacco Administration is slated to receive a 25.87 percent increase to P699.9 million.
Zubiri challenged Tiu Laurel to crack down on pork price manipulation, smuggling and excessive meat imports.
“Show your anger toward those engaging in predatory pricing and smugglers. Fight them. Don’t be afraid,” Zubiri told Tiu Laurel.
In response, Tiu Laurel said the DA was considering temporarily suspending imports of certain pork products.
“I can suspend imports of pork shoulder, ham and belly for 60 days or stop issuing new Sanitary and Phytosanitary Import Clearances (SPSICs),” Tiu Laurel said.
SPSICs are permits required for agricultural imports to ensure compliance with animal health and food safety requirements.
Zubiri also asked whether the DA had a price-monitoring team that could coordinate with the Department of Trade and Industry (DTI), which has powers to monitor prices.
Tiu Laurel attributed the industry’s difficulties to increased domestic production and imports, weaker consumer demand due to affordability concerns, and African swine fever (ASF).
He said the DA monitored prices daily in major markets but acknowledged that its monitoring had focused primarily on price increases.
The department had not closely tracked price declines, he said.
