President Ferdinand R. Marcos Jr., in a long-sought move, made financial coverage an effective tool in protecting farmers from losses, particularly as a result of calamities resulting from drastic shifts in the weather.
The Palace released an order yesterday transferring the Philippine Crop Insurance Corp. (PCIC) to the Department of Agriculture (DA), making it more responsive to the needs of small farmers, fisherfolk, and other agricultural stakeholders.
Agriculture Secretary Francisco Tiu Laurel Jr. welcomed the President’s Executive Order ( EO) 60.
“This gives us the scope to assure farmers, livestock and poultry raisers, aquaculturists, and others in the production side, so we could shield them from losses that may be caused by disasters, pests and diseases,” he said.
The Presidential Communications Office said Marcos issued EO 60, dated 13 May, returning the PCIC to the control and supervision of the DA, after the previous administration placed it under the ambit of the Department of Finance (DoF).
In his order, Marcos underscored the strong organizational link between the PCIC and the DA.
“[It] is necessary to enhance the agricultural insurance protection program to make it highly responsive to the needs of small farmers and fisherfolk and other agricultural stakeholders with policies and programs aimed at ensuring food security and the modernization of the agricultural sector,” he said.
The PCIC, a government-owned or -controlled corporation (GOCC), is tasked to provide insurance protection to farmers against losses arising from natural disasters, plant diseases, and pest infestation.
The order also provided for the reorganization of the PCIC board to include the presidents of the Land Bank of the Philippines and PCIC, the executive director of the Agricultural Credit Policy Council, and a representative of the private insurance industry to be appointed by the President on the nomination of the DoF chief.
A World Bank (WB) study found PCIC neither provided value for money to taxpayers nor adequate protection to farmers.
The PCIC is also “very exposed to catastrophe losses which are not reinsured,” said the study done by a team from the WB’s Disaster Risk Financing and Insurance Program (DRFIP).
“While premium subsidies given by the government to the PCIC grew rapidly over the years, agricultural insurance has only reached one-third of the country’s farmers and is not well-targeted to ensure that taxpayers are getting value for their money,” the WB said.
PCIC’s insurance products are also not suitable for the majority of Filipino farmers, especially for small subsistence holders and growers, the study said.
Farmers represented
The board shall also include three representatives of the subsistence farmers’ sector, preferably representing agrarian reform beneficiaries, cooperatives, or associations from Luzon, the Visayas and Mindanao, appointed by the President upon their nomination by different farmer organizations and/or cooperatives.
The appointment or designation of the chairperson, vice chairperson, and other officers of the board of directors shall be in accordance with Republic Act 10149, or the GOCC Governance Act of 2011.
The Administrative Code of 1987 mandates the DA to promote the country’s agricultural development by providing policy framework, public investments and support services necessary for the advancement of the agricultural sector.
The DA has been wanting to regain oversight of the PCIC, pressing the need to synchronize the implementation of policies amid current challenges in the indemnification of affected farmers and fisherfolk during natural calamities and disasters.
