September 8, 2025 | 12:00am
MANILA, Philippines — The Division of Agriculture (DA) and the World Financial institution have agreed to construction a $70-million local weather insurance coverage fund as a co-insurance pool that may usher in personal insurers alongside the state-run Philippine Crop Insurance coverage Corp. (PCIC).
Underneath the association, the Division of Finance will function borrower of the World Financial institution mortgage whereas the DA will implement this system, which is ready to roll out in 2026.
The initiative is anticipated to profit 750,000 small farmers and fisherfolk by the point it wraps up in 2030.
“This can enable our producers to bounce again quicker after local weather shocks and resume manufacturing with minimal delay.”
The DA stated this system will merge the PCIC’s expertise in agricultural insurance coverage with the capital and technical know-how of personal insurers, together with the Nationwide Reinsurance Corp. of the Philippines.
By pooling sources and dangers, the DA stated each authorities and personal insurers will share the burden of climate-triggered disasters reminiscent of droughts and floods.
“A stronger insurance coverage framework reduces the chance in agricultural lending,”Agriculture Secretary Francisco Tiu Laurel stated.
“This encourages banks to supply extra credit score, serving to farmers put money into know-how, undertake climate-smart practices, and enhance productiveness,” he added.
The DA stated the undertaking additionally aligns with President Marcos’ imaginative and prescient of modernizing agriculture and constructing a food-secure Philippines.
This system’s announcement comes because the farm sector reveals indicators of restoration, with agricultural manufacturing increasing by 5.7 % within the second quarter, based on knowledge launched final month by the Philippine Statistics Authority.
It outpaced the 1.9-percent development recorded within the first quarter and reversed the three.2-percent contraction posted in the identical interval final 12 months.
