Tiu Laurel pushes P8 billion crop insurance to protect farmers from typhoons, droughts

Agriculture Secretary Francisco P. Tiu Laurel Jr. is urging Congress to double the government’s crop insurance subsidy to ₱8 billion in 2026, enough to cover up to 4.2 million farmers, most of them rice growers.

Currently, 2.3 million farmers are insured under the Philippine Crop Insurance Corporation (PCIC), with rice farmers comprising 1.25 million.

PCIC provides a maximum coverage of ₱20,000 per hectare, about a third of the estimated ₱60,000 cost of rice production.

“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, PCIC’s subsidy remains at ₱4.5 billion, the same level since 2022. Tiu Laurel said this limits the government’s ability to protect farmers from rising risks.

“To insure 4.2 million farmers, we need about ₱8 billion. That means we’re short by ₱3.5 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.”

The agriculture chief emphasized that expanding insurance coverage is a strategic investment in food security. “Crop insurance isn’t just a financial product—it’s a critical lifeline,” he 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.”

Tiu Laurel appealed to lawmakers to prioritize agricultural resilience in the national budget, stressing that a fully funded insurance system is key to stabilizing rural incomes, sustaining productivity, and protecting the country’s food supply.

Source: bilyonaryo.com