Every day, millions of Filipino farmers, fisherfolk, and rural workers rise before dawn to feed a nation. Two new landmark programs are about to make sure their hard work pays off more than ever before.
On May 15, 2026, the Department of Agriculture (DA), the World Bank Group, and the United Kingdom jointly launched the Philippines Sustainable Agricultural Transformation (PSAT) program and its companion grant, the Technical Assistance for Sustainable Agricultural Transformation (TASAT) — the largest coordinated package of support for agriculture that the World Bank has provided to the Philippines.
Farm Jobs Challenge
Agriculture employs roughly one in five working Filipinos. But low productivity, inefficient subsidy programs and limited market access have kept farm incomes low and rural job quality poor. Many young Filipinos are leaving the fields because farming has not been made competitive, modern, or rewarding enough.
PSAT and TASAT are designed to address these structural challenges by modernizing agricultural systems, improving public spending, and strengthening the institutions that serve farmers. Together, they represent a US$1.024 billion commitment to a more productive and resilient sector, that works better for smallholder farmers, women, and the next generation of rural entrepreneurs.
DA Secretary Francisco Tiu Laurel Jr. set the tone at the launch. "The present moment calls not merely for incremental change, but for genuine transformation — and for all of us to serve as catalysts of that transformation."
What the Operations Will Do
PSAT is a Program-for-Results, the first time this innovative financing instrument has been deployed in the Philippines. World Bank financing is released only when agreed results are achieved, tied to 12 Disbursement-Linked Indicators across three areas: raising productivity and incomes in rice-based farming systems; strengthening food value chains and diversification into higher-value crops; and improving institutional performance and service delivery.
Through these reforms, PSAT will help farmers increase output, diversify production, and reach better markets. The program will focus on underlying drivers of growth, such as redesigning the fertilizer subsidy into a digital voucher system, supporting the production of high-value crops such as vegetables and fruits, and upgrading food safety and export certification laboratories. Together, these changes are intended to raise farm earnings and expand job opportunities in processing, logistics, and agribusiness.
TASAT, a US$24.5 million grant financed through the World Bank's Food Systems 2030 trust fund and the UK Foreign, Commonwealth and Development Office (UKFCDO) Livable Planet Fund, complements PSAT, by strengthening the DA's systems, skills, and tools to reinforce the policy and operational foundations of the sector and ensure that the institutional machinery sustains job creation and income growth over time.
L-R: Assistant Secretary Daniel Alfonso Atayde, Department of Agriculture (DA); DA Assistant Secretary Thelma Tolentino; Department of Agriculture Secretary Francisco Tiu Laurel Jr.; United Kingdom Ambassador to the Philippines H.E. Sarah Hulton; World Bank Division Director for the Philippines, Malaysia and Brunei Zafer Mustafaoğlu; DA Undersecretary Allan Umali; DA Undersecretary Jerome Oliveros; DA Assistant Secretary Arnel De Mesa; United Kingdom Regional Agriculture Counsellor Rickie Jennings; World Bank Senior Agriculture Economist Farbod Youssefi-Vashh
