The Philippines has launched a major new agriculture program that will put $1 billion in World Bank financing behind efforts to modernize farming, improve food security, and strengthen climate resilience. The package, called the Philippine Sustainable Agriculture Transformation program, is the country’s largest-ever World Bank loan for agriculture and is expected to reach millions of farmers by 2030.

Finance Secretary Frederick D. Go signed the loan agreement on May 14, following the World Bank board’s approval on March 27, with the bank’s Philippines division director, Zafer Mustafaoğlu, signing earlier on April 10. The loan is denominated in Japanese yen at ¥156.61 billion and includes a 0.25 percent front-end fee plus a 0.25 percent annual commitment charge on any undrawn balance.

The financing will be released through the World Bank’s first Program-for-Results operation in the Philippines, meaning disbursements depend on the government meeting agreed-upon performance targets. The structure is designed to reward results rather than simply fund spending, pushing agencies to deliver measurable improvements in the agriculture sector.

The program’s main focus is climate-resilient rice production, with support for improved seed varieties, farm mechanization, fertilizer subsidy reforms, and climate-smart farming technologies. It also backs higher-value crops and stronger supply chains through cold storage, modern vegetable production, and food safety laboratories that could help raise export quality.

A third part of the program targets reform inside the Department of Agriculture, including better procurement, stronger budgeting systems, and a central data command center for disaster response. Officials say the overhaul is meant to make the agency faster, more transparent, and better prepared for climate shocks.

The World Bank package is paired with a $24.5 million technical assistance grant approved in April, including $14.5 million from the United Kingdom to support farmer training and climate resilience. Agriculture Secretary Francisco Tiu Laurel Jr. said the initiative could lift productivity, stabilize food supplies, and protect millions of livelihoods, while British Ambassador Sarah Hulton called agricultural transformation a strategic necessity in the face of stronger typhoons and supply chain disruptions.

Taken together, the program signals a shift from short-term support to long-term sector reform.