DA: Farm-to-market road budget hike a game-changer for agriculture

Insider Spotlight

• The P33-billion budget can build about 2,750 kilometers of farm-to-market roads
• DA taking over full responsibility for FMR development from the DPWH starting  2026
• DA sees cost savings of 20 percent
• A total of 131,000 km of FMRs needed to spur rural development and reduce food costs
  
  

Congress’ decision to more than double funding for farm-to-market roads (FMRs) to P33 billion is being framed by the Department of Agriculture (DA) as a turning point for farmers, food supply chains, and rural economies—amid persistently high logistics costs that continue to pressure food prices.

Why it matters

FMRs are critical infrastructure that connect farms to markets, ports, and processing centers. Poor road access drives up transport costs, increases post-harvest losses, and squeezes farmers’ margins. 

A bigger FMR budget could help ease these bottlenecks while supporting food security goals, the DA said in a press statement.

What’s happening

Agriculture Secretary Francisco P. Tiu Laurel Jr. welcomed Congress’ move to raise FMR funding from the P16 billion originally proposed for 2026 to P33 billion, calling it a “game-changing investment” as lawmakers finalize the national budget.

The funding increase was pushed by the House of Representatives to expand road access to more farming communities and accelerate agricultural and countryside development.

“With a P33-billion budget, we can build about 2,750 kilometers of farm-to-market roads that will lower production and transport costs, raise farmers’ incomes, and help bring down food prices for consumers,” Tiu Laurel said.

What’s changing

Beginning in 2026, the DA will take over full responsibility for FMR development from the Department of Public Works and Highways (DPWH)—a major institutional shift aimed at speeding up project delivery and better aligning road construction with agricultural needs.

The DA says it has been preparing for the expanded mandate by:

• Strengthening its in-house engineering capacity
• Coordinating more closely with local government units and other agencies
• Encouraging public participation to ensure projects are delivered on time and built to specification

By the numbers

• P33B – approved FMR budget for 2026
• P16B – original proposal for 2026
• ~20 percent lower – DA’s estimated cost savings vs. DPWH
• P15M/km – DPWH’s average FMR construction cost
• 2,750 km – potential new roads under the higher budget

Tiu Laurel said early estimates show the DA can deliver FMR projects at roughly 20 percent lower cost than DPWH, potentially freeing up funds to build more roads.

Zoom out

The DA estimates the country needs about 131,000 kilometers of FMRs to spur rural development and reduce food costs. Around 60,000 kilometers have yet to be built—an undertaking estimated to cost P720 billion.

At current funding levels, completing the national FMR network would take at least 21 years, underscoring the scale of the challenge.

What they’re saying

Business groups and agribusiness stakeholders welcomed the funding hike, describing FMRs as a productivity multiplier that cuts logistics costs, reduces post-harvest losses, and improves the competitiveness of Philippine agriculture.

Still, Senate President Pro Tempore Panfilo Lacson has raised concerns about whether the expanded list of FMR projects reflects DA planning or congressional insertions tied to the realignment of P255 billion in flood-control funds.

Tiu Laurel assured lawmakers that only “properly vetted and justified” FMR projects will be implemented, adding that a new digital monitoring portal and infrastructure watchdog will allow real-time tracking of projects from fund release to construction. —Ed: Corrie S. Narisma