Agriculture Secretary Francisco Tiu Laurel (file photo)
The Department of Agriculture (DA) will build cheaper farm-to-market roads (FMR) once it formally assumes responsibility of the program starting next year, with the agency introducing new methods to help cut costs.
Agriculture Secretary Francisco Tiu Laurel said the government will save at least 20 percent in construction costs for the FMR program under the DA’s leadership.
Under the Department of Public Works and Highways (DPWH), the current cost of building a kilometer of a two-lane FMR averages around ₱15 million.
Taking over from the DPWH, Tiu Laurel said his agency plans to reduce the funding to ₱12 million or even lower.
He said this would be possible through the use of new technologies and new methods, such as soil stabilizers, where it is suitable.
Last month, the secretary said the DA will assume control of the FMR next year. This comes after the discovery of non-existent and substandard projects under the DPWH’s watch.
The program’s current setup is that the DA only identifies and validates the sites where the roads will be built. The department will then hand it over to the DPWH, which will oversee the entire process, from bidding to construction.
Through the DA’s cost-cutting measure, Tiu Laurel said excess funds would be utilized to bolster the funding of the FMR program.
“If Congress allows us under the 2026 national budget, we can use those savings to build more roads,” he said in a statement.
Under the DA’s proposed budget for next year, the FMR program has been earmarked with a budget of ₱16 billion, enough to build just over 1,000 kilometers of roads.
The budget has since been doubled to ₱32 billion after it received additional funding from redirected funds that were originally intended for flood-control projects, which are currently embroiled in a massive corruption scandal.
“With double the budget and cost-cutting measures in place, the DA hopes to accelerate market connectivity for rural producers, boosting farm incomes while helping stabilize food prices for consumers,” said Tiu Laurel.
Based on government data, the country requires approximately 131,000 kilometers of FMRs to efficiently connect agricultural production areas to markets, with 70,000 kilometers already completed.
The DA stated that, at the current pace of construction, it would take at least 60 years to complete in full.
“We can cut that time in half with stronger coordination and smarter spending,” Tiu Laurel said
To ensure transparency, he said the DA will collaborate with local governments, civil society organizations, and the Philippine Army’s Corps of Engineers to provide another layer of oversight.
“We want every peso to go to real roads that benefit real farmers—not into the pockets of corrupt officials,” he added.