PCIC to seek P7.5-B budget in 2027, extension of charter
THE Philippine Crop Insurance Corp. (PCIC) said it is seeking a P7.5-billion budget for next year to expand insurance coverage for farmers, and an extension of its charter, which is set to expire in 2028.
PCIC President Jovy C. Bernabe said the proposed budget represents a P1-billion increase from the current P6.5 billion, which would allow the state insurer to cover an additional 500,000 farmers.
“For every P1 billion in additional funding, we can cover around 450,000 to 500,000 more farmers across various sectors,” he told reporters.
Mr. Bernabe said any additional coverage will be allocated 60% to rice, 20% to corn, and 10% to high-value crops.
“Most subsistence farmers really (cultivate) rice and corn, so that’s where we concentrate — on the marginalized,” he added.
The PCIC received an additional P2 billion in funding this year, allowing it to raise the indemnity for farmers that suffer total crop losses.
“With the increase in budget for this year, the usual P20,000 per hectare for rice and corn that we pay for total loss (was) raised it to P25,000 to increase the indemnity for our farmers. That’s a 25% increase,” Mr. Bernabe said.
Meanwhile, the PCIC said it is optimistic that Congress will approve the extension of its charter, which is set to expire in 2028.
“We’re being supported by many legislators in both the House and the Senate. They have filed bills for the extension of the PCIC charter, and we are hopeful that it will be extended,” Mr. Bernabe said.
PCIC was created by Presidential Decree No. 1467 in 1978, which initially set the state insurer’s corporate life at 50 years.
Mr. Bernabe said legislators are considering granting PCIC a perpetual charter, which would not only extend the agency’s mandate indefinitely but also include provisions to strengthen its operations.
He said the proposed changes call for the digitalization of PCIC services and encourage partnerships with private insurance companies.
“The PCIC will also be encouraged to collaborate with private insurance companies so they can also participate in agricultural insurance,” Mr. Bernabe added. — Vonn Andrei E. Villamiel
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