Agri chief wants crop insurance subsidy raised to P8 billion by 2026

Agriculture Secretary Francisco Tiu Laurel Jr. is urging Congress to increase the crop insurance subsidy to P8 billion by 2026 to cover more farmers and bolster food security against escalating production costs and climate challenges.

Currently, the Philippine Crop Insurance Corporation (PCIC) insures approximately 2.3 million farmers, with 1.25 million being rice farmers, but the P20,000 per hectare coverage falls short of the estimated P60,000 production cost for rice.

Secretary Tiu Laurel emphasized that the current subsidy level is insufficient to protect the nation's 4.2 million agricultural workers, particularly smallholder rice farmers.

The proposed 2026 budget maintains the PCIC's subsidy at P4.5 billion, which has been the same since 2022, highlighting a significant funding gap to achieve the target coverage.

To insure an additional 2.2 million rice farmers, bringing the total to nearly a million more than currently covered, an estimated P8 billion subsidy is required, indicating a shortfall of P3.5 billion from the proposed budget.