By: Chhum Chantha

PHNOM PENH — Droughts, floods and rising temperatures are putting Cambodia’s farmers under growing financial pressure, prompting the Ministry of Agriculture to consider crop insurance as a way to protect farmers from losses.

The ministry is considering buying insurance for farmers in its “Modern Agricultural Community” program, particularly during the rainy season, as climate-related risks become harder to predict, said ministry spokesperson Khim Finan.

“Modern Agricultural Community” is one of the ministry’s measures to help farmers cope with climate risks. The program promotes net-house farming, lower production costs, access to low-interest loans, market research and technical advice.

But Finan said those measures alone may not be enough to protect farmers when crops are damaged by extreme weather.

“We are considering buying crop insurance for our members in the community, especially during the rainy season,” he said at the Cambodia Agriculture Forum and Exhibition 2026 (CAFE26) on October 1.

“This is a good mechanism for risk-prone farmers. You can consider joining our community.”

The ministry established the Modern Agricultural Community program to promote large-scale, cooperative farming, focusing on crops including cashews, rice, pepper and vegetables.

Over the past three years, 40 communities have been established, bringing together nearly 6,000 families farming about 2,000 hectares of land.

Climate and Other Pressures

Climate change is not the only challenge facing farmers. The war in the Middle East and the Cambodia-Thailand border conflict have also pushed up the cost of fuel, fertilizer and agricultural chemicals.

To cut production costs, farmers in the communities are exploring solar power as an alternative to fuel-powered engines used to pump water into and out of rice fields.

Meanwhile, the effects of El Niño have added to the pressure, bringing drought, flooding and higher temperatures in parts of Cambodia.

Since January, rainfall has been 50 percent to 60 percent lower than during the same period in 2025, according to the ministry. With El Niño expected to persist into 2027, temperatures could rise further.

Between July and September, drought damaged more than 200,000 hectares of rice fields across 10 provinces, with Battambang, Pursat and Kampong Speu among the hardest-hit areas.

Flooding damaged another 160,000 hectares of rice fields in 10 provinces.

Limited Insurance Options

Despite having 40 insurance companies, Cambodia has only one company offering a crop insurance product, and it currently covers rice farmers.

In 2024, 76,103 families in Battambang, Kampong Thom and Prey Veng bought crop insurance from Forte. The company collected about $760,000 in premiums from the farmers.

Ny Lyhoung, Group Chief Partnership Officer at Forte, said farmers who take out crop insurance receive compensation when they suffer covered losses.

Forte paid out about $600,000 in compensation in 2023, with payouts rising in 2024 as El Niño intensified its impact on agriculture.

For the ministry, expanding access to insurance could give farmers another layer of protection as climate risks become more frequent and costly.

The proposed insurance scheme would be an additional safeguard for farmers in the Modern Agricultural Community program, rather than a replacement for measures aimed at reducing production costs and helping farmers adapt to changing weather conditions.

Teng Yalirozy contributed to the story.

Published Date: October 6, 2026