Set to roll out in 2026, the project aims to benefit 750,000 small farmers and fisherfolk by the time it wraps up in 2030, according to Agriculture Secretary Francisco P. Tiu Laurel Jr.

“The World Bank plans to leverage its loan to mobilize between $300 million and $500 million in climate protection for farmers, fisherfolk, and agri-based MSMEs,” he said. “This will allow our producers to bounce back faster after climate shocks and resume production with minimal delay.”

Under the impending loan arrangement, the Department of Finance will serve as borrower, while the DA will implement the project. The program will utilize a co-insurance pool, where both public and private insurers share the risk of climate-triggered disasters such as droughts and floods.

The project will merge the Philippine Crop Insurance Corp.’s experience in agricultural insurance with the capital and technical know-how of private insurers, including the National Reinsurance Corporation of the Philippines.

“A stronger insurance framework reduces the risk in agricultural lending,” Tiu Laurel said. “This encourages banks to provide more credit, helping farmers invest in technology, adopt climate-smart practices, and boost productivity.”

The co-insurance pool aligns with vision of President Ferdinand Marcos Jr. to modernize agriculture and establish a food-secure Philippines.

“When our farmers are better protected, our food supply becomes more stable,” Tiu Laurel added. “And that is critical in our mission to feed every Filipino family.”

Agriculture Assistant Secretary and spokesman Arnel De Mesa announced the upcoming milestone, noting that the DA is close to finalizing a $1 billion foreign-assisted project with the World Bank.

In line with these efforts, the DA, in collaboration with the Development Bank of the Philippines (DBP) and Planters Products Inc., officially launched the Agri-Puhunan at Pantawid (APP) Programin Guimba, Nueva Ecija, on Monday.

The APP program seeks to revolutionize the agriculture sector by providing rice farmers with financial and input support to enhance productivity and sustainability. Under the program, farmers will receive P28,000 in input credits per hectare and P32,000 in financial assistance, payable over four months at a low-interest rate of 2 percent.

Key partners in the program include the Development Bank of the Philippines (DBP), which will manage loans through Intervention Monitoring Cards; Planters Products, which will ensure access to affordable fertilizers and farm inputs; Philippine Crop Insurance Corp., which continues to offer insurance coverage for farmer-beneficiaries; and the National Irrigation Administration, which coordinates  water releases to align with climate-resilient cropping schedules.

The National Food Authority (NFA) and the Department of Social Welfare and Development (DSWD) will act as ready buyers of farmers’ harvests, with surplus sales to private traders helping farmers repay their loans.

Agriculture Secretary Francisco Tiu Laurel Jr., through DA Undersecretary Asis Perez, highlighted the program’s transformative potential during the inauguration. “This program addresses long-standing challenges in the agriculture sector—from access to affordable capital to climate resilience and guaranteed market access. It is a movement toward sustainable development,” said Tiu Laurel.

The APP initiative also supports the shift in the rice cropping calendar to mitigate the impacts of climate change and ensures that farmer-members of agricultural cooperatives across 1.2 million hectares benefit from affordable credit, crop insurance, and higher yields.

Once fully implemented, the program is expected to contribute significantly to food security, raise farmer incomes, and empower rural communities.

This dual-pronged approach of securing foreign financing and launching farmer-centered initiatives underscores the DA’s commitment to transforming Philippine agriculture into a sustainable and resilient sector.