DA secures World Bank backing for $70-million climate risk shield

The Department of Agriculture (DA) over the weekend said it has secured the backing of the World Bank for its five-year $70-million initiative to establish a co-insurance pool for the Philippine agriculture sector amid escalating climate-related risks.

According to the DA, the loan arrangement is scheduled to be rolled out in 2026, and will benefit 750,000 small farmers and fisherfolk by 2030.

“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 (micro, small, and medium enterprises),” Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement.

“This will allow our producers to bounce back faster after climate shocks and resume production with minimal delay,” he added.

The program will utilize a co-insurance pool, with the public and private insurers sharing the risk of climate-triggered disasters including droughts and floods. The Department of Finance (DOF) will serve as the borrower, while the DA will implement the project.

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

“When our farmers are better protected, our food supply becomes more stable. And that is critical in our mission to feed every Filipino family,” he added. — Jon Viktor D. Cabuenas/BM, GMA Integrated News