DA, World Bank plan $70-m climate insurance for farmers

The Department of Agriculture (DA) will roll out a $70-million climate change insurance program in 2026 with funding support from the World Bank to shield the country’s agriculture sector from worsening climate risks.

Agriculture Secretary Francisco Tiu Laurel Jr. said the five-year project, which runs until 2030, is expected to benefit 750,000 small farmers and fishermen.

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“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,” he said.

Tiu Laurel said the program will allow producers to bounce back faster after climate shocks and resume production with minimal delay.

Under the loan arrangement, the Department of Finance will serve as the borrower, while the DA will implement the project, establishing a co-insurance pool where public and private insurers share risks from climate-triggered disasters such as droughts and floods.

The program will combine the Philippine Crop Insurance Corp.’s expertise in agricultural insurance with the capital and technical capacity of private insurers, including the National Reinsurance Corporation of the Philippines.

“A stronger insurance framework reduces the risk in agricultural lending,” Tiu Laurel said. “This encourages banks to provide more credit, helping farmers invest in technology, adopt climate-smart practices, and boost productivity.”

The initiative also supports President Ferdinand Marcos Jr.’s vision to modernize agriculture and secure the country’s food supply.

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