Comparative Analysis of Philippine Crop Insurance Corporation (PCIC) Rice Crop Insurance Program in Pila, Laguna

Date

5-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Cherry Lou R. Nuñez

Abstract

The study was conducted to determine the factors that affect the farmers’ availment of the Philippine Rice Crop Insurance (PCIC) rice crop insurance program in Pila, Laguna. Primary data were obtained through personal interviews with farmer-respondents and point person of PCIC Regional Office IV. Secondary data, on the other hand, were obtained from PCIC. In analyzing the data gathered, descriptive analysis, simple means, percentages, and cost and return analyses were used. Purposive sampling was used to obtain 60 sample respondents. These were obtained from barangays Concepcion, Bulilan Norte and Tubuan in Pila, Laguna. Thirty (30) farmer-respondents with insurance were obtained from PCIC Regional Office IV, while the 30 farmer-respondents without insurance were obtained from the list of farmers obtained from the Municipal Agriculture Office (MAO).

Results showed that the major reasons why the farmer-respondents joined the program were to secure the farm income and capital for next farming season and to recover losses just in case there will be crop damages, in view of previous bad experience with calamities and pest infestation. On the other hand, the following were the reasons of uninsured farmer- respondents not availing of the rice crop insurance program, namely: (i) they were unaware of the existence of the Rice Crop Insurance Program of PCIC, (ii) they forgot to process the application form, (iii) the owners were not hands-on relative to their land, while the farm operators have no authority to decide on availing the rice crop insurance program, and (iv) they were not interested. The data about the socio-demographics and basic farm characteristics had homologous results except for educational attainment. The farmers with insurance had a higher educational attainment than farmers who were not insured. In terms of the perception and awareness of the farmers, the study showed that the farmer- respondents had the knowledge about the procedures for availing of rice crop insurance as well as the process for claiming the indemnity. However, other attributes of the rice crop insurance were not known to the farmer-respondents. Thus, the effectiveness of the rice crop insurance program was not maximized by the rice farmers for lack of knowledge in Pila, Laguna.

The Cramer’s V and Phi Coefficient tests were used to determine the strength of association between the farmers’ characteristics and their insurance status. The following socio- demographic characteristics such as: age, educational attainment, number of dependents, group affiliations, gender and civil status, showed to have moderate association with the insurance status which implies that these socio-demographic characteristics were contributory factors in the decision of the respondents in availing or not availing of the rice crop insurance program of PCIC in moderate strength. On the other hand, the household size was found to have no association to the insurance status, which implies that it did not affect the farmers’ decision in availing or not availing the PCIC rice crop insurance program. Furthermore, the study revealed that there was a strong relationship between the tenure status and the insurance status of farmer-respondents. This shows that tenure status was an important factor that had an effect on the farmers’ decision in the availment of the PCIC rice insurance program. In terms of basic farm characteristics, the farming years and farm size showed to have moderate association with the insurance status, while the tenure status showed a strong association with the availment of PCIC rice crop insurance program. These imply that the years in farming and farm size, and tenure status have affected the farmers’ decision in the availment of the rice crop insurance, with the strength from moderate to strong respectively. In terms of the socio-demographic profile, such as gender and civil status, both showed moderate association with the insurance status. Gender and civil status showed to affect farmers’ decision in the availment of the rice crop insurance in moderate strength. The male farmers and single/widowed were more likely to avail of crop insurance.

Moreover, the Point-Biserial Correlation was used to measure the correlation of the strength of association of the farmer’s production cost, revenue, and income with their insurance status. The associations of the insurance status of farmers with their income, revenue, and cost per tenure status were tested. The study revealed that overall, the cost of production, revenue, and net income of farmers have a very weak positive association with the farmers availment of PCIC rice crop insurance program. The positive association implies that if the amount of cost or revenue or income increases, the farmer-respondents’ willingness to avail of the PCIC rice insurance program increases, as well.

The Philippine Crop Insurance Corporation (PCIC) was created under the PD. 1467 on June 11, 1978 to provide agricultural insurance by protecting the country’s agricultural farmers and producers. However, farmers still encountered problems, such as: low indemnity claims; indemnity payments not given; poor service delivery of the PCIC; no knowledge on the process of application; and biased evaluation and assessment of damages. The study recommendations are the following: (1) PCIC should provide trainings and seminars to their staff about estimating crop losses; (2) PCIC should regularly conduct information campaign activities among rice farmers to improve the awareness of crop insurance among rice farmers; (3) PCIC should develop a more accurate estimation procedure in assessing crop yield losses; (4) PCIC should develop online database for the application process and indemnity claims of insurance to be used by the local government; (5) Rice farmers should be educated on the right farm management practices by the DA technicians; (6) Conduct of seminars and workshops for rice farmers by the local government focused on PCIC rice crop insurance program; and (7) PCIC and the local government should update their list about the causes of crop damages in the area.

Language

English

LC Subject

Crop insurance, Rice trade--Philippines

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 Q53

Notes

Viewing access to electronic resources is restricted solely to UP Gmail accounts. Any access and share requests from external organizations and personal email accounts will be promptly declined.

Document Type

Thesis

Link to Full Text

Share

COinS