Philippine Agriculture Secretary Francisco P. Tiu Laurel Jr. is seeking a substantial increase in funding for crop insurance to expand protection for millions of Filipino farmers facing growing climate and market risks.
According to Laurel, the government’s current subsidy for the Philippine Crop Insurance Corporation (PCIC) is not keeping up with farmers’ needs. While 2.3 million farmers are presently covered – including 1.25 million rice producers – the existing P4.5 billion allocation limits coverage to a maximum of P20,000 per hectare, only a third of the estimated P60,000 cost of rice production.
“PCIC’s current subsidy level is simply inadequate. We need to insure more farmers at realistic levels that reflect the true cost of production, especially as climate change and market volatility continue to impact the sector.”
He noted that under the proposed 2026 national budget, the subsidy remains unchanged at P4.5 billion – a level held steady since 2022. Laurel warned that without an increase, the government cannot adequately protect farmers from losses caused by natural disasters, pests, and fluctuating market prices.
“To insure 4.2 million farmers, we need about P8 billion. That means we’re short by P3.5 billion. Of the 4.2 million farmers we aim to cover, 2.2 million will be rice farmers – an increase of nearly a million from the current number,” Laurel said, adding that expanding crop insurance should be treated as an investment in national food security, as it enables farmers to recover faster from extreme weather events and maintain stable production levels.
“Crop insurance isn’t just a financial product – it’s a critical lifeline. When typhoons, droughts, or pest outbreaks hit, insured farmers can recover faster and get back to planting. Without it, many are left in debt or forced to abandon farming altogether.”
He urged lawmakers to prioritize agricultural resilience in the upcoming budget deliberations, stressing that a well-funded insurance system would help stabilize rural livelihoods and ensure the country’s food supply remains secure.
Source - Insurance Business Magazine
