Agriculture Secretary Francisco P. Tiu Laurel Jr. is urging Congress to significantly increase the government’s crop insurance subsidy to PHP8 billion, almost double the current PHP4.5 billion, to provide coverage for up to 4.2 million agricultural workers—most of whom are rice farmers—by 2026.
Currently, only 2.3 million farmers are insured under the Philippine Crop Insurance Corporation (PCIC), with rice farmers accounting for 1.25 million of that total. The PCIC provides a maximum coverage of just PHP20,000 per hectare for rice farmers, only a third of the estimated average production cost of P60,000 per hectare.
“PCIC’s current subsidy level is simply inadequate,” said Tiu Laurel. “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 General Appropriations Act, the PCIC’s subsidy remains at P4.5 billion—the same level since 2022. Tiu Laurel warned that this stagnant funding undermines the government’s ability to protect farmers from mounting risks.
“To insure 4.2 million farmers, we need about PHP8 billion. That means we’re short by PHP3.5 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 stressed that expanding insurance coverage is a strategic investment in the country’s food security. By boosting PCIC’s capacity, the government can provide a stronger safety net for smallholder farmers—especially rice producers—who face the dual burden of rising input costs and increasingly unpredictable weather patterns.
“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 called on lawmakers to prioritize agricultural resilience in the national budget, pointing out that a well-funded insurance system is essential for stabilizing rural incomes, encouraging continued production, and safeguarding the country’s food supply.
