The Federation of Free Farmers (FFF) lauded the issuance of Executive Order 60 by President Ferdinand Marcos, Jr., bringing the Philippine Crop Insurance Corp. (PCIC) back under the auspices of the Department of Agriculture (DA).
“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 FFF chairman Leonardo Montemayor.
The corporation provides financial compensation to insured farmers experiencing crop damage caused by calamities, pests and diseases.
PCIC operations are funded from various sources—farmers’ premiums, lending institutions and the government.
Executive Order 148, issued by then-President Rodrigo Duterte, moved the PCIC from the DA to the Department of Finance (DOF) due to concerns raised by economic managers regarding the agency’s high subsidies and operating costs.
EO 148 placed the DOF at the helm of the PCIC board and reduced small farmer representation from three to one member.
“Government support for the PCIC shouldn’t be solely viewed as a farmer subsidy. More importantly, it’s a critical investment in ensuring the country’s food security,” Montemayor said, emphasizing the broader benefit to society.
The FFF previously voiced anxieties about delayed claim payments and reduced benefits for farmers while under DOF management.
The group claimed the issues were linked to the DOF’s focus on cost-cutting measures aimed at improving the agency’s financial health.
The FFF expressed its gratitude to the President and DA Secretary Francisco Tiu-Laurel Jr. for listening to farmers’ pleas and returning the PCIC to the DA.
It urged the government to maintain its strong support for crop insurance programs, especially considering the ongoing El Niño/La Niña phenomenon and the possibility of more severe weather disturbances in the coming years.
President Ferdinand Marcos, Sr. established the PCIC in 1978 through Presidential Decree 1467. It was amended in 1995 under Republic Act 8175.
