2,068 rice farmers receive nearly US$128K in 1st crop insurance claims

For the first time since the crop insurance programme for rice farmers was launched, some US$128,000 was accessed by those affected by above-normal-rainfall during the first crop of the year. This is according to the 2026 Mid-Year Report released by the Ministry of Finance on Monday. The premium-free crop insurance programme, which was developed through an agreement between the Government of Guyana (via the Guyana Rice Development Board), UPL Costa Rica, and Philip Morris International (PMI), was launched last year. The coverage will span an initial three-year period, completely free of cost to the farmers.

According to the report, “for the first time the crop insurance facility was accessed and resulted in claims of almost US$128,000 from 2,068 farmers affected by above-normal-rainfall during the first crop of 2026”. Additionally, 5106 rice farmers benefitted from direct cash subsidies from the Government. Earlier this year, the Government announced the intervention to assist farmers amid rising production costs and challenges on the global market. Farmers with 50 acres or less received $15,000 per acre and those with more than 50 acres received $10,000 per acre. By midyear, $2.8 billion was paid to farmers, covering 234,920 acres. According to the Mid-Year Report, as a result of rice being the second-largest contributor to non-oil exports, vulnerability to the declining world market prices remains a factor of concern. “Average prices for the first six months of 2026 declined when compared with the average in the first half of last year. Government continues to provide support to boost domestic production with the provision of direct assistance to rice farmers across the country in the first half of 2026 to subsidise the rising cost of production and contain domestic food inflation,” the document outlined. At the time when the subsidy was announced, it was noted that a major issue affecting the sector is declining international rice prices, driven by oversupply and high global production. This directly reduces what farmers earn locally, even when production is strong. Farmers are also faced with rising production costs, including fuel and fertiliser, which has already doubled in price from $6000 to some $12,000. This is exacerbated by the ongoing conflict in the Middle East. In addition to this subsidy, the Government noted that it is working with rice farmers on reducing the cost of production, improving productivity and supporting diversification by maximising opportunities to earn from their lands. Moreover, to address the issue of oversupply, the Government has announced its intention to construct a massive drying floor and storage facility along the Essequibo Coast, Region Two (Pomeroon-Supenaam) over the next five years.

In fact, some $1 billion has been budgeted this year for the construction of these climate-controlled silos. According to the Mid-Year Report, in the second half of 2026, construction will commence for the first climate-controlled storage hub in Region Two with an intended capacity of 10,000 tonnes. In addition, it said the Government will continue developing improved rice varieties, expanding production of newly commissioned varieties, including biofortified rice, promoting value-added rice products and researching new markets for paddy, rice and value-added products. Meanwhile, it was noted that in the first half of the year, in addition to the cash subsidy given to farmers, some $211.7 million was spent to support the industry.