Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. is calling on Congress to increase the government’s crop insurance subsidy, aiming to expand coverage to 4.2 million agricultural workers by next year. Currently, only 2.3 million farmers are insured through the Philippine Crop Insurance Corporation (PCIC), with rice farmers comprising 1.25 million of that number.
Tiu Laurel expressed concern over the stagnant subsidy of P4.5 billion, which has remained unchanged since 2022, warning that it is insufficient to protect farmers from growing risks, especially amidst climate change and market instability. He said the existing cover of P20,000 per hectare for rice farmers covers only a third of their production costs, which average P60,000 per hectare.
To cover the targeted 4.2 million farmers, the DA estimates a need for about P8 billion, which would represent a P3.5 billion shortfall. Expanding insurance coverage, particularly for rice farmers, is seen as crucial for strengthening food security and providing a safety net for smallholder farmers facing unpredictable weather and rising input costs.
PCIC, which currently insures 47 percent of the nation’s farmers, offers protection against natural disasters, plant diseases, and pest outbreaks, and also covers non-crop agricultural assets like machinery and infrastructure. Tiu Laurel stressed that crop insurance is vital for ensuring that farmers can recover and resume production after calamities, preventing financial ruin and abandonment of farming.
