Senate Committee on Trade, Commerce and Entrepreneurship Chairperson Koko Pimentel III said on Sunday that he was planning to convene insurance stakeholders to discuss and propose measures that would give added protection to Filipino farmers, particularly from the damaging effects of typhoons and natural calamities.
The move was meant to enhance the food security situation in the country.
“I’m specifically eyeing crop insurance and similar instruments as tools that would empower farmers in dealing with the unpredictability of climate change and its adverse effects on crop production. We need a renewed and sustained effort to popularize crop insurance beyond what it is now,” the legislator noted.
Insuring agriculture production, Pimentel explained, was mainly the function of the Philippine Crop Insurance Corporation (PCIC), an attached agency of the Department of Agriculture (DA).
“Our ultimate objective is to craft legislation to solve an urgent national problem.”
“PCIC insures against losses arising from natural calamities, plant diseases and pest infestations. It also provides protection for non-crop agricultural assets such as machineries, equipment, transport facilities and other assets.”
The problem, Pimentel pointed out, was the limited reach and resources of the government agency.
“We see two problems immediately: One, there’s not enough education about crop insurance for farmers, apart from the fact that it’s required for agri-financing. Two, as far as we’re aware, private sector participation in this field of insurance is non-existent. The PCIC does it all alone. That’s why we need to cast a wider net in this discussion.”
Citing figures from the DA, Pimentel noted that the most recent Typhoon “Ompong” caused damages totaling P26.7 billion to the agriculture sector, the highest since Super Typhoon “Yolanda” in 2013.
Rice production was the hardest hit, according to the lawmaker from Mindanao, with damage amounting to P14.5 billion. Damage to corn and high value crops were at P8.2 billion and P3.4 billion, respectively.
“The Committee on Trade, Commerce and Entrepreneurship should provide a venue for experts and stakeholders to discuss and propose solutions. For instance, I’m very eager to learn about newer crop insurance trends such as index-based insurance, which link coverage payout to scientific and historical data on local rainfall, wind speed, temperature, yield statistics and the like. Our ultimate objective is to craft legislation to solve an urgent national problem.”
“We should therefore ensure that all kinds of protective measures for farmers become a viable, workable and beneficial reality.”
“Year-round typhoons are a reality. Climate change is a reality. We should therefore ensure that all kinds of protective measures for farmers become a viable, workable and beneficial reality,” Pimentel emphasized.
