class: center, middle, inverse, title-slide .title[ # Department of Agriculture ] .subtitle[ ## The FY 2027 proposed budget in context, 2018-2027 ] .date[ ### August 2026 ] --- <style type="text/css"> .remark-slide-content, .remark-slide-content h1, .remark-slide-content h2, .remark-slide-content h3, .remark-slide-content h4, .remark-slide-content p, .remark-slide-content li, .remark-slide-content td, .remark-slide-content th, .title-slide h1, .title-slide h2, .title-slide h3 { font-family: Arial, Helvetica, "IBM Plex Sans", sans-serif; } .remark-slide-content { font-size: 22px; } .remark-slide-content h1 { font-size: 36px; font-weight: 600; } .remark-slide-content h2 { font-size: 28px; font-weight: 600; } .remark-slide-content h3 { font-size: 22px; font-weight: 600; } .remark-slide-content table { font-size: 18px; } .remark-slide-content .footnote { position: absolute; bottom: 0.5em; left: 1em; font-size: 14px; color: #6e6e6e; } .small, .small li { font-size: 17px; } .section-divider { background-color: #1B4965; color: #ffffff; } .section-divider h1, .section-divider h2 { color: #ffffff; } </style> # Section 1 of 3: Office of the Secretary --- ## Executive summary -- the FY 2027 proposal - **The FY 2027 NEP proposes to *cut* the DA budget** to PHP 171.3B department-wide (PHP 152.0B for the OSEC) -- **down ~PHP 14B (-8%) from the FY 2026 enacted level** -- even as food security and farm-input costs dominate public debate. - **Farm-to-Market Roads are nearly halved:** the FMR line falls **PHP 33B -> PHP 16B (-PHP 17B)**, by far the single largest change. (FMR is appropriated at DA but implemented by DPWH.) - **Locally-funded and foreign-assisted projects grow to over half the OSEC.** Grouped together, they rise **+PHP 5.3B to PHP 76.9B -- 50.6% of the entire OSEC budget.** This category bundles many individual projects -- often small and short-lived -- and, as a group, has absorbed slowly (disbursement ~33-53% recently). - **That is the central risk:** the fastest-growing, largest line is also the **weakest-absorbing and least-transparent** one. Foreign-assisted disbursement-to-allotment was just **33% (2024) and 53% (2025)**. - **The operational core is roughly held or trimmed:** the National Rice Program PSS stays ~PHP 26B; livestock and corn PSS are cut. Several extension, equipment and modernization lines see modest increases. - **Most attached agencies are also cut** (Section 2) -- Philippine Carabao Center, NMIS, ACPC and others -- with the Bureau of Fisheries the main exception. - **The scrutiny question for advocates:** does a smaller DA budget, tilted further toward a large, fast-churning and slow-disbursing portfolio of foreign-assisted projects and away from farm-to-market roads, match the government's stated food-security priorities? --- ## A few notes on the data - **Period:** FY 2018 through FY 2027. **FY 2027 is the NEP (Executive proposal) only** -- not yet debated or enacted, with no execution data. FY 2026 reflects NEP/GAA only. Execution data (Allotments, Obligations, Disbursements) is available for the Office of the Secretary for 2018-2025. - **Reading the proposal:** wherever a chart or table shows FY 2027, the figure is *proposed*. Attached agencies (Section 2) have no P/A/P-level execution data, so their analysis is NEP/GAA only -- the FY 2027 proposal is exactly the lever advocates can act on before enactment. - **Scope:** DA Office of the Secretary -- 68 P/A/Ps. Attached agencies (BFAR, ACPC, PCC, and 6 others) covered in Section 2. - **Expense classes:** PS (Personnel Services), MOOE (Maintenance & Other Operating Expenses), FE (Financial Expenses), CO (Capital Outlays). - **PREXC structure:** General Admin (1000), Support to Operations (2000), Production and Marketing Support (3101 -- the operational core), Infrastructure (3102), Policy (3103), Regulatory (3104), and a Locally-Funded and Foreign-Assisted bucket (3105). - **One structural note:** the Farm-to-Market Roads line (PHP 23-33B per year) is appropriated in DA's budget but transferred to DPWH for implementation via MOA. Its execution does not appear in DA's SAAODB. The aggregate GAA-to-Allotment ratio at DA-OSEC runs 55-70%, almost entirely because of FMR and other transferred lines. - **Absorptive capacity denominator:** Adjusted Allotments (AdjAllot) -- this measures how well DA spent what was actually placed in its hands, separate from the question of how much of its GAA was transferred out. --- ## Big picture: the budget keeps growing <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/osec-evolution-1.png" width="100%" style="display: block; margin: auto;" /> --- ## Big picture: a few takeaways <table class="table table-condensed table-striped" style="font-size: 15px; color: black; margin-left: auto; margin-right: auto;"> <thead> <tr> <th style="text-align:left;"> PHP B </th> <th style="text-align:right;"> 2018 </th> <th style="text-align:right;"> 2019 </th> <th style="text-align:right;"> 2020 </th> <th style="text-align:right;"> 2021 </th> <th style="text-align:right;"> 2022 </th> <th style="text-align:right;"> 2023 </th> <th style="text-align:right;"> 2024 </th> <th style="text-align:right;"> 2025 </th> <th style="text-align:right;"> 2026 </th> <th style="text-align:right;"> 2027 </th> </tr> </thead> <tbody> <tr> <td style="text-align:left;"> NEP </td> <td style="text-align:right;"> 43.0 </td> <td style="text-align:right;"> 36.3 </td> <td style="text-align:right;"> 43.7 </td> <td style="text-align:right;"> 54.6 </td> <td style="text-align:right;"> 59.8 </td> <td style="text-align:right;"> 88.1 </td> <td style="text-align:right;"> 92.4 </td> <td style="text-align:right;"> 111.5 </td> <td style="text-align:right;"> 134.9 </td> <td style="text-align:right;"> 152 </td> </tr> <tr> <td style="text-align:left;"> GAA </td> <td style="text-align:right;"> 43.9 </td> <td style="text-align:right;"> 36.7 </td> <td style="text-align:right;"> 51.0 </td> <td style="text-align:right;"> 58.7 </td> <td style="text-align:right;"> 58.8 </td> <td style="text-align:right;"> 85.9 </td> <td style="text-align:right;"> 96.0 </td> <td style="text-align:right;"> 107.7 </td> <td style="text-align:right;"> 165.5 </td> <td style="text-align:right;"> </td> </tr> <tr> <td style="text-align:left;"> Adj. Allotment </td> <td style="text-align:right;"> 30.6 </td> <td style="text-align:right;"> 22.8 </td> <td style="text-align:right;"> 21.8 </td> <td style="text-align:right;"> 35.9 </td> <td style="text-align:right;"> 37.3 </td> <td style="text-align:right;"> 59.1 </td> <td style="text-align:right;"> 65.4 </td> <td style="text-align:right;"> 59.1 </td> <td style="text-align:right;"> </td> <td style="text-align:right;"> </td> </tr> <tr> <td style="text-align:left;"> Obligations </td> <td style="text-align:right;"> 29.5 </td> <td style="text-align:right;"> 22.0 </td> <td style="text-align:right;"> 21.0 </td> <td style="text-align:right;"> 34.5 </td> <td style="text-align:right;"> 35.7 </td> <td style="text-align:right;"> 53.2 </td> <td style="text-align:right;"> 58.6 </td> <td style="text-align:right;"> 51.8 </td> <td style="text-align:right;"> </td> <td style="text-align:right;"> </td> </tr> <tr> <td style="text-align:left;"> Disbursements </td> <td style="text-align:right;"> 22.7 </td> <td style="text-align:right;"> 17.6 </td> <td style="text-align:right;"> 17.8 </td> <td style="text-align:right;"> 28.6 </td> <td style="text-align:right;"> 30.2 </td> <td style="text-align:right;"> 45.3 </td> <td style="text-align:right;"> 45.8 </td> <td style="text-align:right;"> 40.9 </td> <td style="text-align:right;"> </td> <td style="text-align:right;"> </td> </tr> </tbody> </table> - **The 2023 budget jump (+PHP 27B over 2022 GAA)** marked the start of a new spending plateau, with subsequent years all above PHP 85B. - **Disbursements track allotments at ~70%.** In FY 2025, DA-OSEC was allotted PHP 59B but disbursed only PHP 41B -- a PHP 18B gap. - **Congress has stayed within ~PHP 5B of the NEP** in most years; the FY 2026 budget reflects a +PHP 31B Congressional add (the biggest in the series). --- ## Where the money goes (by PREXC program) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/osec-composition-1.png" width="100%" style="display: block; margin: auto;" /> --- ## Composition by Expense Class <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/osec-comp-ec-1.png" width="100%" style="display: block; margin: auto;" /> --- ## The ten largest P/A/Ps (FY 2027 NEP, proposed) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/osec-top10-1.png" width="100%" style="display: block; margin: auto;" /> --- ## Biggest proposed changes, FY 2026 -> FY 2027 <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/osec-change-2627-1.png" width="100%" style="display: block; margin: auto;" /> --- ## Where Congress adjusts the DA budget <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/osec-augmentation-1.png" width="100%" style="display: block; margin: auto;" /> --- ## Absorptive capacity: aggregate <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/osec-absorp-agg-1.png" width="100%" style="display: block; margin: auto;" /> --- ## Absorption by Expense Class <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/osec-absorp-ec-1.png" width="100%" style="display: block; margin: auto;" /> --- ## Strongest absorbers (FY 2025) <table class="table table-condensed table-striped" style="font-size: 14px; color: black; margin-left: auto; margin-right: auto;"> <thead> <tr> <th style="text-align:left;"> P/A/P </th> <th style="text-align:right;"> Allotment (B) </th> <th style="text-align:right;"> O/A </th> <th style="text-align:right;"> D/O </th> <th style="text-align:right;"> D/A </th> </tr> </thead> <tbody> <tr> <td style="text-align:left;"> Other Extension Support, Education and Training... </td> <td style="text-align:right;"> 0.54 </td> <td style="text-align:right;"> 99% </td> <td style="text-align:right;"> 95% </td> <td style="text-align:right;"> 94% </td> </tr> <tr> <td style="text-align:left;"> Production Support Services (PSS) on the Nation... </td> <td style="text-align:right;"> 3.39 </td> <td style="text-align:right;"> 99% </td> <td style="text-align:right;"> 93% </td> <td style="text-align:right;"> 92% </td> </tr> <tr> <td style="text-align:left;"> General Management and Supervision </td> <td style="text-align:right;"> 2.07 </td> <td style="text-align:right;"> 98% </td> <td style="text-align:right;"> 92% </td> <td style="text-align:right;"> 90% </td> </tr> <tr> <td style="text-align:left;"> Quality Control and Inspection </td> <td style="text-align:right;"> 0.54 </td> <td style="text-align:right;"> 98% </td> <td style="text-align:right;"> 88% </td> <td style="text-align:right;"> 87% </td> </tr> <tr> <td style="text-align:left;"> Production Support Services (PSS) on the Nation... </td> <td style="text-align:right;"> 16.28 </td> <td style="text-align:right;"> 98% </td> <td style="text-align:right;"> 87% </td> <td style="text-align:right;"> 85% </td> </tr> <tr> <td style="text-align:left;"> Other Research and Development Activities </td> <td style="text-align:right;"> 1.22 </td> <td style="text-align:right;"> 95% </td> <td style="text-align:right;"> 89% </td> <td style="text-align:right;"> 84% </td> </tr> <tr> <td style="text-align:left;"> Development of Organizational Policies, Plans a... </td> <td style="text-align:right;"> 0.54 </td> <td style="text-align:right;"> 95% </td> <td style="text-align:right;"> 86% </td> <td style="text-align:right;"> 82% </td> </tr> </tbody> </table> The strongest absorbers are the long-established commodity programs (Corn PSS, General Management, Other R&D). **The biggest single line in the budget -- the National Rice Program PSS at PHP 16B allotted -- disbursed 85%**, solid but not at the top. --- ## Weakest absorbers (FY 2025) <table class="table table-condensed table-striped" style="font-size: 14px; color: black; margin-left: auto; margin-right: auto;"> <thead> <tr> <th style="text-align:left;"> P/A/P </th> <th style="text-align:right;"> Allotment (B) </th> <th style="text-align:right;"> O/A </th> <th style="text-align:right;"> D/O </th> <th style="text-align:right;"> D/A </th> </tr> </thead> <tbody> <tr> <td style="text-align:left;"> Provision of Agricultural Equipment and Facilit... </td> <td style="text-align:right;"> 1.85 </td> <td style="text-align:right;"> 56% </td> <td style="text-align:right;"> 47% </td> <td style="text-align:right;"> 27% </td> </tr> <tr> <td style="text-align:left;"> Production Support Services (PSS) on the Nation... </td> <td style="text-align:right;"> 2.98 </td> <td style="text-align:right;"> 62% </td> <td style="text-align:right;"> 51% </td> <td style="text-align:right;"> 31% </td> </tr> <tr> <td style="text-align:left;"> Provision of Agricultural Equipment and Facilit... </td> <td style="text-align:right;"> 0.56 </td> <td style="text-align:right;"> 78% </td> <td style="text-align:right;"> 45% </td> <td style="text-align:right;"> 35% </td> </tr> <tr> <td style="text-align:left;"> Provision of Agricultural Equipment and Facilit... </td> <td style="text-align:right;"> 1.60 </td> <td style="text-align:right;"> 56% </td> <td style="text-align:right;"> 67% </td> <td style="text-align:right;"> 37% </td> </tr> <tr> <td style="text-align:left;"> Information and Communication Technology (ICT) ... </td> <td style="text-align:right;"> 0.79 </td> <td style="text-align:right;"> 61% </td> <td style="text-align:right;"> 72% </td> <td style="text-align:right;"> 44% </td> </tr> <tr> <td style="text-align:left;"> Locally-Funded and Foreign-Assisted Program </td> <td style="text-align:right;"> 10.21 </td> <td style="text-align:right;"> 77% </td> <td style="text-align:right;"> 69% </td> <td style="text-align:right;"> 53% </td> </tr> <tr> <td style="text-align:left;"> Operation and Maintenance of the Integrated Lab... </td> <td style="text-align:right;"> 1.19 </td> <td style="text-align:right;"> 91% </td> <td style="text-align:right;"> 61% </td> <td style="text-align:right;"> 55% </td> </tr> </tbody> </table> The weakest absorbers are **the Agricultural Equipment Provision lines (Corn, High-Value Crops, Rice)** and **Livestock PSS** -- where physical procurement of farm equipment lags. The Locally-Funded/Foreign-Assisted line at 53% is the largest absolute underspend. --- ## Locally-Funded and Foreign-Assisted: many projects, one line <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/osec-lfp-fap-1.png" width="100%" style="display: block; margin: auto;" /> .small[ - **This is an analytical grouping, not a single project.** The category bundles many individual locally-funded and foreign-assisted projects (loan-funded and locally-funded specials), collapsed here into one line. Individually they are numerous and often short-lived -- appearing in one year and gone the next -- which is what makes year-on-year tracking hard. - **Absorption is consistently weak:** D/A averaged 60% from 2018-2023 and fell to 33% (2024) and 53% (2025). - **The FY 2027 NEP proposes PHP 76.9B for this grouping -- 50.6% of the entire proposed OSEC budget**, up +PHP 5.3B even as the department's total is cut. With prior-year absorption around 50%, over half the OSEC budget now flows through a fast-churning, slow-disbursing project portfolio -- a clear focus for advocate scrutiny. ] --- ## Trajectories of the three largest programs <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/osec-trend-1.png" width="100%" style="display: block; margin: auto;" /> --- class: section-divider center middle # Section 2 of 3: Attached Agencies ### 9 agencies, NEP/GAA only -- execution data not encoded --- ## Attached agencies: the FY 2027 proposal at a glance <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/attached-overview-1.png" width="100%" style="display: block; margin: auto;" /> .small[ The nine attached agencies are ~PHP 19B combined -- about a tenth of DA. The FY 2027 NEP trims most of them (Philippine Carabao Center -PHP 0.7B, NMIS, ACPC), a pattern advocates for livestock, meat safety and rural credit will want to question. Each agency's proposal is detailed in the slides that follow. ] --- # Bureau of Fisheries and Aquatic Resources (BFAR) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/bfar-evo-1.png" width="100%" style="display: block; margin: auto;" /> BFAR is **the largest DA attached agency**, with operations in fisheries production, monitoring/control/surveillance, post-harvest infrastructure, and aquaculture. The 2024 GAA leap (+PHP 1.9B over the NEP) was the largest Congressional add to BFAR in the period. --- ## BFAR: top P/A/Ps (FY 2027 NEP, proposed) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/bfar-top-1.png" width="100%" style="display: block; margin: auto;" /> .small[ - **FishCORE (the World Bank-funded Philippine Fisheries and Coastal Resiliency Project)** is now PHP 2.04B -- the second-largest line and 17% of the agency budget. It first appeared as a meaningful line in 2024 and has grown each year. - Core operational lines (Production and Distribution, Monitoring/Control/Surveillance, Operation of Production Facilities) are the traditional backbone. - **General Management and Supervision is 5.5% of the agency** -- a leaner overhead than most. ] --- ## BFAR: insights <table class="table table-condensed table-striped" style="font-size: 14px; color: black; margin-left: auto; margin-right: auto;"> <thead> <tr> <th style="text-align:left;"> PHP B </th> <th style="text-align:right;"> 2018 </th> <th style="text-align:right;"> 2019 </th> <th style="text-align:right;"> 2020 </th> <th style="text-align:right;"> 2021 </th> <th style="text-align:right;"> 2022 </th> <th style="text-align:right;"> 2023 </th> <th style="text-align:right;"> 2024 </th> <th style="text-align:right;"> 2025 </th> <th style="text-align:right;"> 2026 </th> <th style="text-align:right;"> 2027 </th> </tr> </thead> <tbody> <tr> <td style="text-align:left;"> GAA </td> <td style="text-align:right;"> 6.09 </td> <td style="text-align:right;"> 5.76 </td> <td style="text-align:right;"> 6.11 </td> <td style="text-align:right;"> 4.74 </td> <td style="text-align:right;"> 4.57 </td> <td style="text-align:right;"> 6.82 </td> <td style="text-align:right;"> 9.65 </td> <td style="text-align:right;"> 10.44 </td> <td style="text-align:right;"> 11.76 </td> <td style="text-align:right;"> </td> </tr> <tr> <td style="text-align:left;"> NEP </td> <td style="text-align:right;"> 6.00 </td> <td style="text-align:right;"> 5.69 </td> <td style="text-align:right;"> 5.86 </td> <td style="text-align:right;"> 4.48 </td> <td style="text-align:right;"> 4.35 </td> <td style="text-align:right;"> 6.21 </td> <td style="text-align:right;"> 7.73 </td> <td style="text-align:right;"> 10.22 </td> <td style="text-align:right;"> 11.16 </td> <td style="text-align:right;"> 12.25 </td> </tr> </tbody> </table> - **A long flat period (2018-2022) was broken by the 2023 ramp-up** (+PHP 2B from 2022 to 2023). The agency's budget has not stopped rising since. - **Congress consistently augments BFAR.** The +PHP 1.9B 2024 GAA add over the NEP was the most striking -- much of which went to project lines including FishCORE. - **BFAR is the exception in FY 2027.** While most attached agencies are cut, the FY 2027 NEP proposes **+PHP 0.5B for BFAR, to PHP 12.3B** -- a new high, continuing the run of increases. Advocates might ask what within fisheries is prioritised, and whether it absorbs better than the projects driving the OSEC's risk. --- # Agricultural Credit Policy Council (ACPC) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/acpc-evo-1.png" width="100%" style="display: block; margin: auto;" /> ACPC administers the **Agro-Industry Modernization Credit and Financing Program (AMCFP)** -- a credit subsidy and guarantee window for agricultural lending. It is essentially a one-program agency wrapped in light management overhead. --- ## ACPC: top P/A/Ps (FY 2027 NEP, proposed) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/acpc-top-1.png" width="100%" style="display: block; margin: auto;" /> .small[ - **AMCFP at PHP 3.02B is 97% of the agency's total budget.** All other ACPC lines combined account for ~PHP 90M. - **Single-program agencies invite a structural question:** is the agency wrapper for AMCFP justified, or could the program live inside the DA-OSEC? ] --- ## ACPC: insights <table class="table table-condensed table-striped" style="font-size: 14px; color: black; margin-left: auto; margin-right: auto;"> <thead> <tr> <th style="text-align:left;"> PHP B </th> <th style="text-align:right;"> 2018 </th> <th style="text-align:right;"> 2019 </th> <th style="text-align:right;"> 2020 </th> <th style="text-align:right;"> 2021 </th> <th style="text-align:right;"> 2022 </th> <th style="text-align:right;"> 2023 </th> <th style="text-align:right;"> 2024 </th> <th style="text-align:right;"> 2025 </th> <th style="text-align:right;"> 2026 </th> <th style="text-align:right;"> 2027 </th> </tr> </thead> <tbody> <tr> <td style="text-align:left;"> GAA </td> <td style="text-align:right;"> 1.12 </td> <td style="text-align:right;"> 2.54 </td> <td style="text-align:right;"> 2.84 </td> <td style="text-align:right;"> 2.79 </td> <td style="text-align:right;"> 2.6 </td> <td style="text-align:right;"> 2.83 </td> <td style="text-align:right;"> 2.85 </td> <td style="text-align:right;"> 2.86 </td> <td style="text-align:right;"> 3.11 </td> <td style="text-align:right;"> </td> </tr> <tr> <td style="text-align:left;"> NEP </td> <td style="text-align:right;"> 0.97 </td> <td style="text-align:right;"> 3.54 </td> <td style="text-align:right;"> 2.58 </td> <td style="text-align:right;"> 2.59 </td> <td style="text-align:right;"> 2.6 </td> <td style="text-align:right;"> 2.83 </td> <td style="text-align:right;"> 2.85 </td> <td style="text-align:right;"> 2.86 </td> <td style="text-align:right;"> 2.86 </td> <td style="text-align:right;"> 2.86 </td> </tr> </tbody> </table> - **The 2019 NEP-to-GAA dip of PHP 1.0B** stands out: ACPC's NEP that year was PHP 3.5B but Congress cut it to PHP 2.5B. The agency has not returned to that proposed level. - **2018-2025 was a stable plateau** around PHP 2.6-2.9B; the 2026 NEP-to-GAA add of +PHP 0.25B is the first material Congressional augmentation in years. - **AMCFP is a single P/A/P** -- its credit windows, loan guarantees, and operating subsidies are not broken out into separate budget lines. --- # Philippine Carabao Center (PCC) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/pcc-evo-1.png" width="100%" style="display: block; margin: auto;" /> The Philippine Carabao Center manages **dairy buffalo genetics, herd build-up, and (newly) a school milk feeding program**. The FY 2026 budget more than doubled on a +PHP 1.1B Congressional add over the NEP. --- ## PCC: top P/A/Ps (FY 2027 NEP, proposed) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/pcc-top-1.png" width="100%" style="display: block; margin: auto;" /> .small[ - **The new Milk Feeding Component of DepEd's School-Based Feeding Program (PHP 1.12B) is now PCC's single largest line.** This program is essentially absent from the 2026 NEP -- a Congressional add. - **Core breeding programs (Upgrading, Herd Build-up of Improved Dairy Buffalos) remain the operational backbone** at a combined PHP 0.67B. - **PCC operates with very light overhead** (General Management at PHP 0.08B = 4% of the agency). ] --- ## PCC: insights <table class="table table-condensed table-striped" style="font-size: 14px; color: black; margin-left: auto; margin-right: auto;"> <thead> <tr> <th style="text-align:left;"> PHP B </th> <th style="text-align:right;"> 2018 </th> <th style="text-align:right;"> 2019 </th> <th style="text-align:right;"> 2020 </th> <th style="text-align:right;"> 2021 </th> <th style="text-align:right;"> 2022 </th> <th style="text-align:right;"> 2023 </th> <th style="text-align:right;"> 2024 </th> <th style="text-align:right;"> 2025 </th> <th style="text-align:right;"> 2026 </th> <th style="text-align:right;"> 2027 </th> </tr> </thead> <tbody> <tr> <td style="text-align:left;"> GAA </td> <td style="text-align:right;"> 0.49 </td> <td style="text-align:right;"> 0.65 </td> <td style="text-align:right;"> 0.59 </td> <td style="text-align:right;"> 0.60 </td> <td style="text-align:right;"> 0.74 </td> <td style="text-align:right;"> 1.20 </td> <td style="text-align:right;"> 0.79 </td> <td style="text-align:right;"> 0.85 </td> <td style="text-align:right;"> 2.08 </td> <td style="text-align:right;"> </td> </tr> <tr> <td style="text-align:left;"> NEP </td> <td style="text-align:right;"> 0.46 </td> <td style="text-align:right;"> 0.47 </td> <td style="text-align:right;"> 0.45 </td> <td style="text-align:right;"> 0.49 </td> <td style="text-align:right;"> 0.94 </td> <td style="text-align:right;"> 0.56 </td> <td style="text-align:right;"> 0.70 </td> <td style="text-align:right;"> 0.85 </td> <td style="text-align:right;"> 0.96 </td> <td style="text-align:right;"> 1.37 </td> </tr> </tbody> </table> - **The 2026 NEP-to-GAA delta (+PHP 1.12B) is the single biggest year-on-year change in the series.** Congress added a school milk feeding program to PCC's mandate. - **Earlier Congressional augmentations were modest but recurring** (+PHP 0.19B 2019, +PHP 0.14B 2020, +PHP 0.64B 2023). PCC is a routine recipient of Congressional plus-ups. - **The 2022 NEP was higher than the GAA** -- one of the rare years Congress trimmed the proposal (-PHP 0.2B). Worth investigating what was cut. --- # National Fisheries Research and Development Institute (NFRDI) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/nfrdi-evo-1.png" width="100%" style="display: block; margin: auto;" /> NFRDI is **the newest meaningful attached agency** -- it has no DA budget line before 2020. Its mandate is fisheries-focused research, distinct from BFAR's operational role. --- ## NFRDI: top P/A/Ps (FY 2027 NEP, proposed) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/nfrdi-top-1.png" width="100%" style="display: block; margin: auto;" /> .small[ - **Research and Development (PHP 0.47B = 63% of agency)** is the operational focus -- as the name implies. - **General Management and Supervision at PHP 0.23B = 31%** is heavy for so small an agency; characteristic of newer, still-scaling institutions. - The remaining sub-lines (Policies, Training, Personnel Benefits) total under PHP 30M. ] --- ## NFRDI: insights <table class="table table-condensed table-striped" style="font-size: 14px; color: black; margin-left: auto; margin-right: auto;"> <thead> <tr> <th style="text-align:left;"> PHP B </th> <th style="text-align:right;"> 2018 </th> <th style="text-align:right;"> 2019 </th> <th style="text-align:right;"> 2020 </th> <th style="text-align:right;"> 2021 </th> <th style="text-align:right;"> 2022 </th> <th style="text-align:right;"> 2023 </th> <th style="text-align:right;"> 2024 </th> <th style="text-align:right;"> 2025 </th> <th style="text-align:right;"> 2026 </th> <th style="text-align:right;"> 2027 </th> </tr> </thead> <tbody> <tr> <td style="text-align:left;"> GAA </td> <td style="text-align:right;"> </td> <td style="text-align:right;"> </td> <td style="text-align:right;"> 0.29 </td> <td style="text-align:right;"> 0.29 </td> <td style="text-align:right;"> 0.35 </td> <td style="text-align:right;"> 0.38 </td> <td style="text-align:right;"> 0.51 </td> <td style="text-align:right;"> 0.61 </td> <td style="text-align:right;"> 0.74 </td> <td style="text-align:right;"> </td> </tr> <tr> <td style="text-align:left;"> NEP </td> <td style="text-align:right;"> </td> <td style="text-align:right;"> </td> <td style="text-align:right;"> 0.29 </td> <td style="text-align:right;"> 0.29 </td> <td style="text-align:right;"> 0.35 </td> <td style="text-align:right;"> 0.38 </td> <td style="text-align:right;"> 0.46 </td> <td style="text-align:right;"> 0.61 </td> <td style="text-align:right;"> 0.74 </td> <td style="text-align:right;"> 0.74 </td> </tr> </tbody> </table> - **NFRDI's budget has more than doubled in five years** (PHP 0.29B 2020 → 0.74B 2026), reflecting deliberate scale-up. - **Every year's NEP has been enacted as-is** except 2024 (+PHP 50M). Congress has been hands-off on NFRDI, treating it as a routine Executive proposal. - **The split between R&D and overhead** is worth monitoring as the agency grows; the share devoted to actual research should ideally rise. --- class: middle ## National Meat Inspection Service (NMIS) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/nmis-evo-1.png" width="100%" style="display: block; margin: auto;" /> .small[ - NMIS regulates **meat establishments, importers/exporters, and inspection deputation**. Budget is stable around PHP 0.4-0.7B across the period. - **The 2018 GAA over NEP (+PHP 0.20B) is the only year of meaningful Congressional augmentation**; every year since 2019 has enacted the NEP as-is. ] --- ## NMIS: top P/A/Ps (FY 2027 NEP, proposed) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/nmis-top-1.png" width="100%" style="display: block; margin: auto;" /> The biggest lines are **Inspection Enforcement (PHP 0.20B) and Importers/Exporters Registration (PHP 0.17B)** -- the agency's two core mandates. The proposed 2026 budget grows each operational line incrementally, with no new programs added. --- class: middle ## Philippine Fiber Industry Development Authority (PhilFIDA) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/philfida-evo-1.png" width="100%" style="display: block; margin: auto;" /> .small[ - PhilFIDA supports the **abaca, cotton, silk, and other natural-fiber industries**. The agency operates across PSS, R&D, ESETS, and quality control. - **Congressional augmentations are tiny** -- mostly under PHP 0.1B per year. - The 2018 GAA-over-NEP (+PHP 0.13B) was the largest single add in the series. ] --- ## PhilFIDA: top P/A/Ps (FY 2027 NEP, proposed) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/philfida-top-1.png" width="100%" style="display: block; margin: auto;" /> **Production Support Services (PHP 0.25B) and General Management (PHP 0.20B)** are the largest lines. Notable: General Management is 30% of the agency -- one of the heaviest overheads among DA attached agencies. --- class: middle ## Philippine Center for Postharvest Development and Mechanization (PHilMech) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/philmech-evo-1.png" width="100%" style="display: block; margin: auto;" /> .small[ - PHilMech focuses on **postharvest technology, mechanization research, and farmer-facing extension services**. - **The NEP has been enacted as-is every year** -- not a single peso of Congressional adjustment in the 2018-2026 series. - This level of stability is unusual among DA attached agencies and suggests low political profile. ] --- ## PHilMech: top P/A/Ps (FY 2027 NEP, proposed) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/philmech-top-1.png" width="100%" style="display: block; margin: auto;" /> The agency is essentially **two lines: ESETS (PHP 0.18B) and R&D (PHP 0.18B)** -- exactly mirroring its mandate. General Management is 21% of the budget. --- class: middle ## Fertilizer and Pesticide Authority (FPA) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/fpa-evo-1.png" width="100%" style="display: block; margin: auto;" /> .small[ - FPA regulates **fertilizer and pesticide registration, licensing, and quality control**. It was absorbed into DA's budget structure starting 2019. - **The 2019 GAA add of +PHP 0.21B established the agency** (NEP was zero); subsequent years have been Executive-led with minimal Congressional adjustment. - The 2026 NEP step-up to PHP 0.42B is the agency's largest single-year increase in the period. ] --- ## FPA: top P/A/Ps (FY 2027 NEP, proposed) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/fpa-top-1.png" width="100%" style="display: block; margin: auto;" /> **Two regulatory lines (Registration and Licensing PHP 0.18B; Quality Control and Inspection PHP 0.15B) carry 79% of the agency.** The Fortified Organic Fertilizer Development Program appears as a near-zero line -- a placeholder rather than an operational program. --- class: middle ## Philippine Council for Agriculture and Fisheries (PCAF) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/pcaf-evo-1.png" width="100%" style="display: block; margin: auto;" /> .small[ - PCAF is a **policy coordination and partnership council** -- the agency does not deliver field operations. - **Notable: Congress has trimmed PCAF's NEP in three years** (2020, 2022, 2023, 2024) -- the only DA attached agency systematically getting cut by Congress. - Despite the cuts, the budget has grown gradually with the rest of DA. ] --- ## PCAF: top P/A/Ps (FY 2027 NEP, proposed) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/pcaf-top-1.png" width="100%" style="display: block; margin: auto;" /> **Three policy lines (Coordination, Planning, Partnership) together = PHP 0.20B = 76% of the agency.** The Intensified Community-Based Dairy Enterprise Development (USPL-80) at PHP 0.02B is the only line that resembles a field program. --- class: section-divider center middle # Section 3 of 3: Department-Wide Perspective ### Aggregating OSEC + 9 attached agencies --- ## The full Department of Agriculture <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/dept-evolution-1.png" width="100%" style="display: block; margin: auto;" /> --- ## OSEC vs attached agencies, GAA composition <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/dept-composition-1.png" width="100%" style="display: block; margin: auto;" /> --- ## Top 15 P/A/Ps across the whole department (FY 2027 NEP, proposed) <img src="data:image/png;base64,#DA_Budget_Analysis_files/figure-html/dept-top-1.png" width="100%" style="display: block; margin: auto;" /> --- ## For discussion -- scrutinising the FY 2027 proposal - **1. A smaller DA budget amid a food-security push.** The proposal cuts the department ~PHP 14B (-8%). With rice prices, farm incomes and import dependence in the headlines, is a reduced agriculture budget defensible -- and where should advocates press Congress to restore funds? - **2. Over half the OSEC budget in fast-churning projects.** The locally-funded and foreign-assisted portfolio is proposed at PHP 76.9B -- 50.6% of the OSEC -- built from many individual projects that turn over year to year and, as a group, disburse at just 33-53%. Which projects persist and actually reach farmers, and should the portfolio's size be weighed against its absorption record? - **3. Farm-to-Market Roads halved (-PHP 17B).** FMR falls from PHP 33B to PHP 16B. Is rural connectivity being deprioritised, or is this a realistic correction given FMR is executed by DPWH? What happens to unfinished road commitments? - **4. The operational core.** The National Rice Program PSS is roughly flat while livestock and corn support are cut. Are the frontline production programs that reach farmers directly adequately funded in the proposal? - **5. Attached agencies mostly trimmed.** Most of the nine are cut -- Philippine Carabao Center, NMIS (meat safety), ACPC (rural credit) -- while only Fisheries grows. Which of these cuts should advocates for livestock, food safety and farm credit contest? --- class: center, middle # Thank you ### Department of Agriculture #### The FY 2027 proposed budget in context, 2018-2027 .footnote[Underlying data: DBM NEP & GAA and DBM-published execution data for the DA-OSEC (Current New Appropriations only), FY 2018-2027; NEP/GAA only for attached agencies. FY 2027 is the proposed NEP only.]