Marcos Reinstates State Crop Insurer to the Department of Agriculture

In a strategic move aimed at strengthening agricultural insurance and support for farmers, President Ferdinand Marcos Jr. has issued an executive order transferring the Philippine Crop Insurance Corporation (PCIC) back to the Department of Agriculture (DA). This decision reverses a previous administrative change made in 2021 by then-President Rodrigo Duterte, which placed the PCIC under the Department of Finance (DOF).

Background of the PCIC

The PCIC, established in 1995 as a government-owned or -controlled corporation (GOCC), is mandated to provide insurance protection to farmers against losses caused by natural disasters, plant diseases, and pest infestations. Initially, the PCIC was under the supervision of the DA, aligning its efforts directly with agricultural policies and programs.

Executive Order No. 60

President Marcos signed Executive Order No. 60, which formally directs the transfer of the PCIC back to the DA. “The PCIC is hereby attached to the DA for policy and program coordination,” stated Marcos in the executive order. This move is intended to create a robust organizational link between the PCIC and the DA, enhancing the responsiveness of agricultural insurance protection programs to the needs of small farmers, fisherfolk, and other agricultural stakeholders.

Changes in Governance

While the PCIC returns to the DA, there are significant changes in its governance structure. Notably, the Agriculture Secretary will no longer hold one of the seven seats on the PCIC board. Similarly, the Finance Secretary and the Government Service Insurance System (GSIS) will also lose their board seats. However, the presidents of the PCIC and Land Bank of the Philippines will retain their positions on the board.

The new board composition includes:

• One seat for the Executive Director of the Agricultural Credit Policy Council of the DA.
• One seat for a representative of the private insurance industry, nominated by the Finance Secretary.
• Three seats, increased from one, allocated to representatives of the farmers sector.

The appointment or designation of the PCIC board chairman will adhere to the rules established under the GOCC Governance Act of 2011.

Rationale and Future Outlook

President Marcos highlighted the importance of a direct connection between the PCIC and the DA to implement policies and programs that ensure food security and the modernization of agriculture. The realignment is expected to facilitate better coordination and responsiveness to the agricultural sector’s needs.

Agriculture Secretary Francisco Tiu Laurel Jr. expressed optimism about the move, stating, “We are pleased that the PCIC is back under the wings of the DA. This gives us the scope to assure farmers, livestock and poultry raisers, aquaculturists, and others in production-side so we could shield them from losses that may be caused by disasters, pests, and diseases.” He also emphasized that the safety net provided by the PCIC would encourage more Filipinos to engage in agriculture, fostering a new generation of farmers.

Conclusion

The reinstatement of the PCIC under the DA is a strategic decision aimed at enhancing the effectiveness of agricultural insurance programs in the Philippines. By re-establishing direct oversight and coordination between the PCIC and the DA, the government aims to better support the agricultural community, ensuring resilience against various risks and contributing to the overall modernization and sustainability of the sector.