The Philippine Department of Agriculture (DA) is seeking to nearly double insurance coverage for farmers as climate-related disasters continue to disrupt agricultural production and threaten food security, according to a press release issued on 7 October 2025.
Agriculture Secretary Francisco P. Tiu Laurel Jr. told lawmakers that the Philippine Crop Insurance Corporation (PCIC) needs to extend protection to 4.2m agricultural workers—up from 2.3m currently insured farmers. The expansion would require PHP8bn (US$137.6m) in government subsidies.
“To insure 4.2m farmers, we need about PHP8bn. That means we’re short by PHP3.5bn,” Tiu Laurel said. Under the proposed 2026 General Appropriations Act, the PCIC’s subsidy remains at PHP4.5bn, unchanged since 2022—a level he warned could undermine government efforts to protect farmers from production losses during calamities.
“PCIC’s current subsidy level is simply inadequate,” he said. “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.”
Rice farmers would account for 2.2m of the expanded coverage, an increase of nearly 1m from current levels. Around 1.25m rice producers currently hold PCIC policies, but the maximum benefit of PHP20,000 per hectare covers only about one-third of the estimated PHP60,000 production cost per hectare.
“Crop insurance isn’t just a financial product—it’s a critical lifeline,” Tiu Laurel added. “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.”
Tiu Laurel urged Congress to prioritise agricultural resilience in the national budget, noting that a well-funded crop insurance system is essential for stabilising rural incomes and safeguarding the country’s food supply.
The call for higher insurance funding comes as the Philippines—one of the world’s most disaster-prone countries—continues to suffer heavy agricultural losses from storms and flooding. In September, Tropical Storm Bualoi hit central Philippines and inflicted around PHP1.7m in agricultural losses in the Western Visayas region alone. Meanwhile, typhoons, storms, and monsoon events that hit the country earlier in the year, including Tropical Storms Wipha, Francisco, and Co-May, had caused about US$195m in structural and agricultural damage nationwide, as of August, according to Aon estimates.
