MANILA – Farmers and fisherfolk are set to receive stronger protection as the government increases funding for agricultural insurance under the 2026 General Appropriations Act (GAA).

The GAA raises the budget of the Philippine Crop Insurance Corp. (PCIC) by 45 percent to P6.5 billion from P4.5 billion last year, marking the highest allocation ever for the program.

The Department of Agriculture–PCIC said the expanded budget will allow higher insurance coverage for rice and corn and broaden the reach of its free insurance program nationwide.

Starting this year, insurance coverage for rice and corn increased to P25,000 per hectare from P20,000, or a 25 percent hike. The amount represents the maximum payout in cases of total crop loss caused by insured perils such as natural calamities, pests, and diseases under PCIC’s multi-peril insurance.

The larger budget will also enable PCIC to insure an estimated 2.93 million farmers and fisherfolk in 2026, nearly 25 percent higher than the 2.35 million covered last year. The free insurance program covers seven product lines, including rice, corn, high-value crops, fisheries and aquaculture, livestock, and non-crop agricultural assets. Credit and life term insurance are excluded from the free coverage.

Funding for the program comes from the government premium subsidy (GPS) under the GAA, which supports agricultural insurance for farmers and fisherfolk listed in the Registry System for Basic Sectors in Agriculture (RSBSA), the government’s official database of agricultural producers.

Free insurance coverage will also extend to coconut farmers registered under the National Coconut Farmers Registry System, supported by about P500 million from the Coconut Farmers and Industry Trust Fund. Around 714,000 coconut farmers are expected to be insured this year, up from 640,000 in 2025.

PCIC also continues to offer insurance to agricultural producers who opt to pay regular premiums.

Overall, the total number of insured farmers and fisherfolk, both subsidized and non-subsidized, is projected to reach 3.68 million in 2026, a 12 percent increase from 3.29 million last year. PCIC said it is accelerating modernization and digitalization efforts to provide faster, more transparent, and more efficient services.