P8B crop insurance sought for agri workers

Agriculture Secretary Francisco Tiu Laurel Jr. has called on Congress to nearly double the government’s crop insurance subsidy to P8 billion by 2026, citing the need to expand protection to more farmers and strengthen the country’s food security amid rising production costs and climate risks.

At present, around 2.3 million farmers are covered by the Philippine Crop Insurance Corporation (PCIC), of which 1.25 million are rice farmers. The agency provides a maximum coverage of P20,000 per hectare — barely a third of the estimated P60,000 cost of producing rice.

“PCIC’s current subsidy level is simply inadequate,” Tiu Laurel 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.”

Under the proposed 2026 national budget, the PCIC’s subsidy remains at P4.5 billion, unchanged since 2022. Tiu Laurel said maintaining that level will not be enough to protect the country’s 4.2 million agricultural workers, most of whom are smallholder rice farmers.

“To insure 4.2 million farmers, we need about P8 billion. That means we’re short by P3.5 billion,” he explained. “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.”

The agriculture chief said expanding insurance coverage is not merely a budget concern but a matter of national food security. He emphasized that crop insurance allows farmers to recover from disasters more quickly and sustain their livelihoods.

“Crop insurance isn’t just a financial product—it’s a critical lifeline,” said Tiu Laurel. “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 2026 budget deliberations, noting that adequate crop insurance funding would stabilize rural incomes and encourage sustained production across the country’s farming communities.