TACLOBAN CITY, (PNA) –The Philippine Crop Insurance Corporation (PCIC) will forge stronger partnership with the private sector to reach out more farmers in carrying out state farm insurance program.
PCIC President Jovy C. Bernabe said that more than a hundred rural banks and financing institutions have signed a deal with PCIC as underwriter.
“There has been a continuing partnership with some rural banks. We acknowledge their important role since they have direct access to farmers,” Bernabe said.
The official claimed that crop insurance is both win-win solutions for PCIC and private financing institutions.
The PCIC president cited that lower risks of income losses in agriculture and fisheries, increase the flow of credit to the farms as well as improve the repayment rate of farmer borrowers.
“A clear understanding of agricultural insurance in the country by the rural bankers is expected to embolden them further to consider farm lending, even to small farmers, a sound investment proposition,” Bernabe said.
Rural Bank of Dulag Manager Natividad Yu confirmed that provision of premium crop insurance has encouraged more farmers to avail agriculture financing from the bank.
“Part of their loan is for crop insurance. That is their security to be able to borrow money. We don’t allow farmers to avail financing without that,” Yu said. The bank has 800 farmer clients in Leyte province.
For the first seven months, the total value of agricultural insurance was P12.414 billion from P11.38 billion in 2012. The number of insured farmers also increased to 311,854 as of July from 309,000 last year.
“By the end of 2013, we are confident that 450,000 farmers will be covered by agricultural insurance,” he said in a brief interview.
Bernabe is optimistic of attaining P25 billion value of agricultural insurance by the end of this year. The official claimed they’re on track of hitting the 2013 target as more farmers realized the importance of farm insurance due to impacts of natural calamities and pest infestations.
This year’s targeted amount of coverage is 118 percent higher than the P11.47 billion recorded in 2012.
Although rice farming accounts the highest component, the PCIC is also eyeing the contribution of new products to accelerate growth – fisheries and coconut.