The Federation of Free Farmers (FFF) yesterday said reinstating the Philippine Crop Insurance Corp. (PCIC) to its original status as an attached agency of the Department of Agriculture (DA) will strengthen the agency in terms of extending support to farmers.
Expressing support to Executive Order (EO) 60 that moved back PCIC to the DA, FFF sees the attached agency to be in a better position in assisting farmers combat the effects of El Niño weather phenomenon, the impending threat of La Niña and other severe weather disturbances in the coming years.
“Government support to the agency should not be considered primarily as a subsidy to farmers but more importantly as a means to ensure adequate food supply for the country,” said Leonardo Montemayor, FFF chairman.
EO 60 was signed by President Marcos Jr. on May 13 citing the need for “a strong organizational link between the PCIC and DA to enhance agricultural insurance protection programs highly responsive to the needs of small farmers and fisherfolk and other agricultural stakeholders, with policies and programs aimed at ensuring food security and modernization of agriculture.”
EO 60 removed the secretary of Finance and the president of the Government Service Insurance System from the board but retained the presidents of PCIC and Land Bank of the Philippines. The issuance reserved one board seat each for the executive director of the Agricultural Credit Policy Council of the DA and the representative of the private insurance industry, who will be nominated by the DOF secretary.
Three board seats, instead of just one, were assigned to representatives of the subsistence farmers’ sector.
“Crop insurance is an important component of the DA’s support program for farmers and it is only logical that the PCIC be part of the DA family,” Montemayor said in a statement.
Former president Rodrigo Duterte through EO 148 transferred the PCIC from the DA to the Department of Finance (DOF) upon the recommendation of the country’s economic managers who raised concerns about the large subsidies and operating costs of the agency.
Montemayor said aside from designating the DOF secretary as chairman of PCIC, the previous administration also reduced the number of small farmers representatives in the PCIC Board from three to only one.
PCIC compensates insured farmers if their produce are damaged by calamities, pests and/or diseases. The state-run firm’s operations are funded from premiums from farmers, lending institutions and the government.
FFF also cited delayed payments of claims and reduced benefits to farmers partly attributed to the cost-cutting measures of the DOF.
