DIPOLOG CITY – “The whole package of
intervention through our support services is a clear manifestation that we are
indeed continually placing our agrarian reform beneficiaries (ARBs) right at
center of development.”
This was the message of OIC-PARO II Moh. Dassan J. Adju of
the Department of Agrarian Reform (DAR)-Zamboanga del Norte during the recently
concluded provincial orientation for Municipal Agrarian Reform Officers (MAOs)
and representatives from Agrarian Reform Beneficiaries Organizations (ARBOs) on
the crop insurance program.
Jointly conducted by DAR, Department of
Agriculture-Philippine Crop Insurance Corporation (DA-PCIC), Agrarian Reform
Beneficiaries - Agricultural Insurance Program (ARB-AIP), the said activity
aimed to orient MAOs and ARBO representatives as potential underwriters for the
crop insurance program. Enhancing credit access for ARBs is DAR's key support services
intervention.
In addition to facilitating agricultural production and
agri-enterprises credit as well as microfinance for ARBs, DAR proposed a budget
of P1 billion in the 2013 General Appropriations Act (GAA) under the budget of
DA-Philippine Crop Insurance Corporation (DA-PCIC), which shall be exclusively
used as premium subsidy for agricultural insurance of ARBs to be endorsed by
DAR.
The program shall be implemented for a period of one year
unless additional funding for succeeding years shall be provided.
The ARB-AIP will be jointly implemented by DAR and DA-PCIC.
The premium subsidy is said to lessen the cost of borrowing by ARBs, by
shifting the cost of crop insurance from the borrower to the government. It
will also lessen the credit constraints of ARBs as the insurance coverage can
act as a guarantee or collateral to the production loans of ARBs.
The program also seeks to address the vulnerability of ARBs
to extreme weather conditions brought about climate change with the crop
insurance protecting them from losses due to pest and disease infestations,
natural calamities, and other weather-related disasters.
Under the joint program, the DAR shall identify the ARBs to
be provided with the premium subsidy while the DA-PICC shall provide the
necessary agricultural insurance cover for the ARBs utilizing the P1 billion
subsidy fund.
The program aims to provide ARBs and ARB household members
with premium subsidy for agricultural insurance to protect them against losses
due to pest and disease infestations, natural calamities, and extreme weather
conditions brought about by climate change, and to improve their productivity.
The program shall give priority to ARBs which are members of
ARBOs that have not yet accessed to any credit from formal financing
institutions. The insurance program shall also cover crops like rice, corn and
high-value crops as well as livestock production. (FPG/AVN/DAR9/PIA9)