The Federation of Free Farmers (FFF) on Monday expressed support for the issuance of Executive Order 60 by President Ferdinand Marcos Jr. reinstating the Philippine Crop Insurance Corp. (PCIC) as an attached agency of the Department of Agriculture (DA).
The group said the agency reversion of status further supports farmers given the threat posed by the La Niña soon after another episode of the El Niño and increased likelihood of more severe weather disturbances up ahead.
“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,” said Leonardo Montemayor, FFF chairman, in a statement.
“Government support to the agency should not be considered primarily as subsidy to farmers but more importantly as a means to ensure adequate food supply for the country,” Montemayor added.
Prior to this development, then President Rodrigo Duterte issued EO 148 removing the PCIC from DA ambit to the Department of Finance (DOF) upon the recommendation of the economic managers who raised concern over the large subsidy and operating costs extended the agency.
Montemayor said aside from designating the DOF Secretary as PCIC chairman, EO 148 also reduced the number of small farmers representatives at the PCIC board from three to only one.
The PCIC compensates insured farmers for crops damaged by calamities, pests and/or diseases. Its operations are funded by premium payments from farmers, lending institutions and the government.
Earlier, the FFF also expressed concern over delayed payment of claims and reduced farmer benefits it traced to the DOF desire to cut costs and enhance its financial profile.
