Senator Francis “Kiko” Pangilinan is pushing for stronger and more comprehensive agricultural insurance protection for farmers and fisherfolk through a proposed measure that seeks to expand services and ensure the continued operation of the Philippine Crop Insurance Corporation (PCIC).
The senator filed Senate Bill No. 2583 on October 29, seeking to strengthen the PCIC by extending its corporate term and expanding its insurance services through further amendments to Presidential Decree No. 1467, as amended.
The proposed measure also aims to strengthen the agricultural sector’s resilience against climate-related risks, particularly amid the looming threat of a strong El Niño, which could bring severe drought, disrupt agricultural production, and threaten the livelihoods of farmers and fisherfolk, as well as the country’s food security.
“Agricultural insurance protects farmers and fisherfolk against losses, supports continued production, and facilitates access to financing. Strengthening and modernizing the Philippine Crop Insurance Corporation (PCIC) is therefore essential to making insurance protection more accessible, responsive, and sustainable,” he said in the bill’s explanatory note.
Citing data from the Philippine Statistics Authority, Pangilinan noted that poverty incidence among farmers and fisherfolk stood at 27 percent and 27.4 percent, respectively, in 2023, underscoring the need to strengthen government support for these vulnerable sectors.
He emphasized that agricultural insurance is an important safety net that not only helps farmers and fisherfolk recover from losses caused by natural calamities, climate-related disruptions, and other agricultural risks, but also supports the continuity of food production and improves their access to credit.
Under the proposed measure, the PCIC’s insurance coverage would be further strengthened and broadened to include a wider range of agricultural commodities and assets, such as palay, corn, high-value crops, livestock, aquaculture and fishery products, agroforestry crops and forest plantations, as well as agricultural machinery, equipment, transport facilities, and infrastructure.
The bill also seeks to strengthen the PCIC’s authority to provide life and accident term insurance coverage for farmers and fisherfolk.
The bill further authorizes the PCIC to adopt modern technologies and offer parametric or index-based insurance products, which provide payouts based on predetermined indicators such as rainfall levels, drought, and other weather-related indices.
Such insurance products could help make coverage and claims more responsive to agricultural risks, particularly those associated with changing weather conditions.
Pangilinan’s proposal also encourages greater private sector participation in agricultural insurance through public-private partnerships, joint ventures, and similar arrangements with agricultural cooperatives, farmers’ organizations, and private insurance providers.
These arrangements are intended to mobilize additional financial and technological resources, expand insurance coverage, and improve service delivery.
The measure also proposes reducing the landholding threshold used to identify subsistence farmers for government premium support from seven hectares to three hectares, to prioritize assistance for smaller agricultural producers.
The threshold would be subject to periodic review based on prevailing socio-economic conditions.
The bill also seeks to strengthen government premium support for insurance against risks such as typhoons, droughts, and pest and disease outbreaks, while allowing increases in premium subsidies and insurance benefits when surplus funds are available.
The measure further directs the PCIC Board of Directors to establish eligibility criteria that consider the vulnerability and risk exposure of farmers, fisherfolk, and food producers to natural, climatic, and biological risks.
“Hindi dapat mauwi sa pagkakabaon sa utang ng ating mga magsasaka at mangingisda ang isang bagyo, baha, tagtuyot, o pagkalat ng sakit. Dapat may maaasahan silang proteksyon upang makabangon at maipagpatuloy ang kanilang kabuhayan,” Pangilinan said.