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DAR 2027 Budget Pivots from Debt Relief to Farm Viability

Manila: With the bulk of its historic agrarian debt-condonation work completed, the Department of Agrarian Reform (DAR) is positioning its PHP16.94-billion proposed 2027 budget toward the next challenge: helping beneficiaries turn debt-free land into productive and sustainable farms. Agrarian Reform Secretary Conrado Estrella III told a Senate budget hearing that DAR has completed the processing required under the New Agrarian Emancipation Act, with only the distribution of remaining certificates of condonation with release of mortgage (COCROMs) in the Bangsamoro Autonomous Region in Muslim Mindanao left to be carried out.

According to Philippines News Agency, Estrella stated, "As we look toward fiscal year 2027, our direction remains clear. Sustain the gains we have achieved, complete our remaining debt condonation obligations, continue land distribution and strengthen tenure security, expand access to agrarian justice, and ensure that our beneficiaries have the means to make their land productive and sustainable." Republic Act 11953 condoned agrarian reform debts covering more than PHP57 billion and hundreds of thousands of beneficiaries, removing unpaid amortizations, interests, and penalties attached to awarded agricultural lands.

DAR's proposed 2027 allocation stands at PHP16.935 billion, roughly at the level of its PHP16.849-billion appropriation this year. Of the proposed amount, PHP8.62 billion or 50.9 percent will go to maintenance and other operating expenses, PHP7.07 billion or 41.72 percent to personnel services, and PHP1.25 billion or 7.37 percent to capital outlay. Beyond completing debt relief, DAR plans to transform agrarian reform beneficiary organizations into self-sustaining cooperatives through improved access to capital, public-private market linkages, technology adoption, and institutional capacity-building.

Estrella emphasized, "The goal is to move our beneficiaries from dependence on government assistance toward greater self-reliance, productivity, and sustainability." The department also plans to continue distributing individual electronic titles, digitize land tenure records, speed up agrarian cases, and bring legal assistance closer to farmers through its Agrarian Reform Justice on Wheels program.

Senate agriculture panel chair Francis Pangilinan expressed support for Estrella's work with agriculture agencies, particularly measures aimed at organizing farmers into stronger cooperatives and improving government purchases directly from producers. Pangilinan remarked, "Secretary Conrad has been 101 percent supportive of our initiatives and we are thankful," while also stressing that the 2027 spending plan should produce measurable gains for farmers, especially as agriculture faces rising input costs and the threat of severe El Ni±o conditions.

Senate Majority Leader Juan Miguel Zubiri likewise expressed support for the DAR allocation, citing the impact of agrarian reform infrastructure in agricultural provinces such as Bukidnon. He stated, "I am here for my full support of your budget and hopefully we can add even more," citing farm-to-market roads as an example of reduced transport costs for corn in his home province.

Senate finance panel chair JV Ejercito acknowledged the limited fiscal space but assured DAR that lawmakers would examine which programs deserve priority funding. "We'll do our best. we will assess kung ano po yung mga (which) programs that will really need to be prioritized," he said. Estrella concluded by asserting DAR's intent to use the 2027 budget to ensure that agrarian reform beneficiaries can earn sustainably from the property they now fully own, saying, "With this meager budget, I'm sure we will be able to do small things in a great way."