The Department of Agriculture (DA) is asking Congress to raise the government’s crop insurance subsidy to P8 billion to provide coverage for up to 4.2 million agricultural workers, aiming to shield them from climate risks and rising production costs.
In a statement yesterday, the DA said only 2.3 million farmers are currently insured under the Philippine Crop Insurance Corp. (PCIC), which represents just over half of the country’s agricultural workforce.
Further, the government agency said the PCIC provides a maximum coverage of P20,000 per hectare for rice farmers, only a third of the estimated average production cost of P60,000 per hectare.
‘PCIC’s current subsidy level is simply inadequate,’ said Agriculture Secretary Francisco Tiu Laurel Jr.
‘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.’
Under the proposed 2026 General Appropriations Act, the PCIC’s subsidy remains at P4.5 billion, the same level since 2022.
Tiu Laurel described the funding amount as ‘stagnant,’ undermining the government’s ability to protect farmers from mounting risks.
‘To insure 4.2 million farmers, we need about P8 billion. That means we’re short by P3.5 billion,’ he said.
‘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.’
Expanding insurance coverage is a strategic investment in the country’s food security, the agriculture chief said.
By boosting PCIC’s capacity, the government can provide a stronger safety net for smallholder farmers, especially rice producers, who face the dual burden of rising input costs and increasingly unpredictable weather patterns.
‘Crop insurance isn’t just a financial product. It’s a critical lifeline,’ Tiu Laurel said.
‘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 called on lawmakers to prioritize agricultural resilience in the national budget, highlighting that a well-funded insurance system is essential to stabilize rural incomes, encourage continued production and secure the country’s food supply.