PCIC encourages small farmers to avail of gov’t crop insurance
The Philippine Crop Insurance Corp. is urging farmers to avail of crop insurance made available by the government to marginalized sustenance farmers.
Specifically, the program, which is a “high risk undertaking” is being offered only to farmers tilling not more than five hectares of agricultural land.
PCIC president Jovy Bernabe said it is the government that is paying for 60 percent of the premium and the farmer will pay the remaining 40 percent.
The PCIC offers six insurance coverage namely for palay, corn, 44 high value commercial crops, livestock, agricultural facilities and even life of farmers, PCIC acting vice president Norman Cajucon said.
He said they looked forward to make PCIC a “one-stop shop” for farmers and for other stakeholders of the agricultural sector.
In 2009, the PCIC covered some 100,000 farmers nationwide and was able to insure some P5 billion worth of crops.
The insurance covered farm investments, warehouses, plantation and livestock among others.
Of the amount, about P3 billion covered rice and corn crops, he said.
Bernabe said the corporation plans to expand its coverage depending, however, on the availability of funds.
No Abolition
Bernabe said the PCIC is not heading for abolition as a government-owned and controlled corporation.
He pointed out that the corporation has significantly improved its performance since it was created in 1981. It currently posts high income and productivity in line with its mandate to provide insurance protection to the farmers all over the country, he said.
Bernabe said there is no way that the PCIC would be abolished, especially that the Department of Budget and Management announced that the firm’s annual budget has been approved.
PCIC’s budget had been ratified, and there was a move to increase it from P2 billion to P12 billion due to its successful implementation of government insurance to farmers, he added.
Meanwhile, PCIC Director David M. Villanueva said the salaries of the PCIC board members are in strict compliance with the salary standardization law.
“There is no overhead expenses and bonuses in the board as far as we’re concerned,” said Villanueva. Also, the members of the board of directors only work on their allowance and go to projects mostly at their own expense.
PCIC is an attached agency of the Department of Agriculture. It currently offers financial aid, loans and insurance to crops, including rice, corn, high value commercial crops agricultural facilities, livestock, among others to farmers, fisher folks and stakeholders.
GOCCs, such as PCIC, are currently being scrutinized by President Benigno Aquino’s for abuse in power and corrupt practices among board of directors, management and in their transactions.
The national government is looking at abolishing non-performing GOCCs or transform them into private-public partnership status, or sold to private investors and players.
Bernabe and other PCIC were in Iloilo City recently for the launching of a new PCIC regional office.*PNA
