Coconut Farmers Propose Reconfiguration of Trust Fund Management Committee

The Federation of Free Farmers (FFF) has denounced the restrictions on sources and amount of funding for the crop insurance coverage allocated to coconut farmers. 

The FFF released a statement saying that under the Coconut Farmers and Industry Trust Fund Act (R.A. No. 11524) the Trust Fund Committee chaired by outgoing DOF Secretary Carlos G. Domingues, only allotted ₱200 million for crop insurance. The law allows for the trust funding to amount to ₱400 million. 

According to the FFF, the ₱200 million pesos would only be enough for 8% or 200,000 out of 2.5 million coconut farmers enlisted with the Philippine Coconut Authority. This would also only insure one hectare for each farmer, without taking into account the real size of the farmer’s coconut farm. 

Mr. Raul Montemayor, FFF’s National Manager has said that “Even if we double the coverage by reducing the amount of insurance per farmer or limiting the coverable risks, at least 80 percent of coconut farmers will still not receive any insurance benefit. Given this, why will Dominguez now ban other agencies such as local governments or the Department of Agriculture (DA) from pitching in and augmenting the subsidy from the Trust Fund?”.

“The millions of coconut farmers – deemed by the Supreme Court as owners of the coco levy Trust Fund – have been shut out of any decision on how the funds will be used. The Fund is now being administered by technocrats whose primary concern is the fiscal position of the government, and not necessarily the welfare of the coconut farmers,” Mr. Montemayor also adds. 

The FFF has now made a proposal regarding the reconfiguration of the Trust Fund Management Committee under R.A. No. 11524, taking into account the lack of representation of coconut farmers on the coconut levy fund’s management and implementation and the substantial powers given to the Finance, Justice, and Budget Secretaries.

Source: Manila Bulletin