The Department of Agriculture (DA) announced on Sunday the World Bank (WB) will back a five-year $70 million co-insurance pool to help cushion Philippine agriculture against escalating climate risks.
Set to roll out in 2026, the program aims to benefit 750,000 small farmers and fisherfolk by 2030.
Under the loan agreement, the Department of Finance (DOF) will serve as the borrower, with the DA as implementing agency.
Co-insurance pool
The initiative will create a co-insurance pool where public and private insurers, including the National Reinsurance Corporation of the Philippines, will share the risk of climate-triggered disasters like droughts and floods.
This approach merges the expertise of the Philippine Crop Insurance Corp. (PCIC) with the capital and technical knowledge of private insurers.
“The World Bank plans to leverage its loan to mobilize between $300 million and $500 million in climate protection for farmers, fisherfolk, and agri-based MSMEs,” Agriculture Secretary Francisco Tiu Laurel Jr. said. “This will allow our producers to bounce back faster after climate shocks and resume production with minimal delay.”
He added that a stronger insurance framework will encourage banks to provide more credit, helping farmers invest in technology, adopt climate-smart practices, and boost productivity.
“When our farmers are better protected, our food supply becomes more stable,” he said. “And that is critical in our mission to feed every Filipino family.”
To cover 600K more farmers
The announcement follows the PCIC’s request for an additional P1 billion in its budget to expand coverage.
In May, PCIC president Jovy Bernabe noted that the corporation’s budget had been fixed at P4.5 billion for the past four years, despite a 100 percent utilization rate.
The requested funds are expected to allow PCIC to cover an additional 600,000 farmers, potentially reaching 4.8 million to 5 million farmers by next year.
Currently, the PCIC covers 47 percent of all farmers in the country. As the government’s implementing agency for agricultural insurance, its mandate is to protect farmers against losses from natural calamities, plant diseases, and pest infestations affecting crops, as well as damage to non-crop agricultural assets like machinery and equipment.
