The World Bank is backing a five-year $70 million initiative to create a co-insurance pool that will cushion Philippine agriculture from escalating climate-related risks, the Department of Agriculture (DA) said in a news release.
Set to roll out in 2026, the project aims to benefit 750,000 small farmers and fisherfolk by the time it wraps up in 2030, according to Agriculture Secretary Francisco P. Tiu Laurel Jr.
“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. “This will allow our producers to bounce back faster after climate shocks and resume production with minimal delay.”
Under the impending loan arrangement, the Department of Finance will serve as borrower, while the DA will implement the project. The program will utilize a co-insurance pool, where both public and private insurers share the risk of climate-triggered disasters such as droughts and floods.
The project will merge the Philippine Crop Insurance Corp.’s experience in agricultural insurance with the capital and technical know-how 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 co-insurance pool aligns with vision of President Ferdinand Marcos Jr. to modernize agriculture and establish a food-secure Philippines.
“When our farmers are better protected, our food supply becomes more stable,” Tiu Laurel added. “And that is critical in our mission to feed every Filipino family.”