Sustainable Returns Why Tiu Laurel's Prioritization Strategy Should Be a Priority for Agricultural Projects in 2025

Sustainable Returns Why Tiu Laurel's Prioritization Strategy Should Be a Priority for Agricultural Projects in 2025

As we move into 2025, it is crucial to prioritize agricultural projects that yield sustainable returns. Agriculture Secretary Francisco Tiu Laurel Jr.'s approach emphasizes focusing on initiatives with strong internal rates of return (IRR) or payback periods.

Prioritizing Projects with Strong Financial Returns

According to Tiu Laurel, Department of Agriculture officials should concentrate on projects offering an IRR of 12-14% or a payback period of seven years at most. This ensures that the projects are bankable and profitable, making them more likely to receive necessary funding and support.

The Business of Sustainable Agricultural Development

As someone with experience in various industries, including fishing, food processing, cold chain, logistics, real estate, and power, Tiu Laurel understands the importance of fiscal discipline in agricultural development. He emphasizes that every peso spent should yield returns that support project sustainability and agricultural growth. We don't have infinite resources, and we can't afford to waste them, he stresses.

Investment-Grade Criteria for Project Prioritization

Projects that fail to meet investment-grade criteria will not be prioritized, as they are unlikely to generate significant returns. For example, a proposal that takes more than a decade to recover the initial investment is not considered good business. At 8 percent, it would take 12 years to recover the investment. That is not good business, Tiu Laurel explains.

Diversification A Key to Building Resilience

To build resilience in the farming sector, Tiu Laurel suggests diversifying products rather than relying on a single crop. While the One Town, One Product model may have its advantages, growing too many crops can lead to inefficiencies. Farmers should strike a balance and cultivate multiple commodities to mitigate overreliance on a single product.

Conclusion

In conclusion, prioritizing projects with good returns is essential for agricultural development. By focusing on initiatives that yield strong IRRs or payback periods, we can ensure the sustainable growth of our agricultural sector. As Tiu Laurel aptly puts it, We don't have infinite resources, and we can't afford to waste them. With a balanced approach to agriculture and a focus on returns, we can build a stronger, more resilient agricultural industry in 2025.

Keywords Sustainable Returns, Agricultural Development, Investment-Grade Criteria, Diversification, Resilience

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CEO / Co-Founder

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