DBM releases P900 million crop insurance funding

MANILA, Philippines — To cover the crop insurance premium of subsistence farmers and fisherfolk in the country, the Department of Budget and Management (DBM) has released P4.5 billion and its corresponding Notice of Cash Allocation for the 1st Quarter of the year in the amount of P900 million to the Philippine Crop Insurance Corp. (PCIC).

“In light of the escalating challenges posed by climate change, which heightens the risks to both our economy and food security, it becomes imperative to prioritize the provision of financial security and insurance to empower our farmers and fishermen. This assistance is intended to help them safeguard their means of living, ensuring they can continue their activities despite unforeseen events,” Budget Secretary Mina Pangandaman said.

Pangandaman signed the release order on March 19.

In 2023, the PCIC was able to insure more than 2.3 million farmers and fisherfolk listed under the Registry System for Basic Sectors in Agriculture. This exceeded the target number of beneficiaries by 44,855.

For this year, PCIC’s authorized appropriation of P4.5 billion under the 2024 General Appropriations Act is expected to cover the full cost of crop insurance premiums of over 2.292 million targeted farmers.

Earlier this year, President Marcos reassured farmers of heightened government support in all their efforts to ensure a sustainable harvest, emphasizing that every seed sown will contribute to a robust and prosperous future.

“Our cooperation to improve our agriculture sector is one of the first steps to a Bagong Pilipinas – where no one will starve and everyone contributes to a bountiful future,” the President expressed.

PICC’s primary mandate is to provide insurance protection to farmers against losses arising from natural calamities, plant diseases, and pest infestations of crops as well as against damage to or loss of non-crop agricultural assets including but not limited to machinery, equipment, transport facilities, and other related infrastructures due to perils insured against.