The Department of Budget and Management (DBM) has released P4.5 billion worth of budget for the crop insurance premium for 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 (SARO) amounting to P4.5 billion and its corresponding Notice of Cash Allocation for the 1st 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.

This year, the PCIC's allocated budget of P4.5 billion is projected to cover the entire premium expenses for crop insurance of over 2.292 million farmers targeted.

The main objective of the corporation is to offer insurance coverage to farmers, shielding them from losses caused by natural disasters, crop diseases, and pest invasions, as well as protecting non-crop agricultural assets like machinery, equipment, transportation, and related infrastructure from insured risks.