The Department of Budget and Management (DBM) has released P4.5 billion to bankroll the crop insurance premium of the agriculture sector to help cushion the impact of the El Niño phenomenon and other natural hazards.

In a statement on Sunday, DBM approved the release of a Special Allotment Release Order amounting to P4.5 billion and its corresponding Notice of Cash Allocation for the first quarter of the year worth P900 million for the Philippine Crop Insurance Corporation (PCIC).

“In light of the escalating challenges posed by climate change, which heightens the risks to both our economy and food security, it becomes imperative to prioritize the provision of financial security and insurance to empower our farmers and fishermen,” Budget Secretary Amenah Pangandaman said.

“This assistance is intended to help them safeguard their means of living, ensuring they can continue their activities despite unforeseen events,” she added.

In 2023, the PCIC insured more than 2.3 million farmers and fishermen registered under the Agriculture Basic Sectors Registry, surpassing its beneficiary goal by 44,855.

The PCIC’s allocated budget of P4.5 billion this year is projected to cover all premium expenses for crop insurance for over 2.292 million farmers targeted.

The corporation’s main objective is to offer insurance coverage to farmers, shielding them from losses caused by natural disasters, crop diseases, and pest invasions. It also protects non-crop agricultural assets like machinery, equipment, transportation, and related infrastructure from insured risks.