The potentials of agricultural insurance as a poverty reduction tool

Poverty persists in many sectors of society. Choosing no one, it creates a dent in an inclusive approach to development the Philippines has endeavored in the last few decades. To make it worse, high poverty incidence is apparent in the agriculture sector, which, together with the manufacturing industry, serves as backbone of the Philippine economy. Exposed to a multitude of risks, a considerable number of agricultural households move in and out of poverty. Data show that 26 percent of households whose head is engaged in agriculture are always poor; 41 percent are sometimes poor. Saving that 41 percent from sliding further into poverty is expected to create positive and direct impact on the country’s poverty reduction initiatives.