Performance of evaluation of Philippine Crop Insurance Corporation's rice crop insurance program in Pampanga, 2016

Date

6-2016

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Roberto F. Rañola Jr.

Abstract

The study was conducted to determine the effectiveness and efficiency of delivering Philippine Crop Insurance Corporation?s Rice Crop Insurance (RCI) program to farmers. Primary data were obtained through one-on-one personal interview with 50 insured and 50 uninsured farmers, using pre-tested interview questionnaires. Descriptive analysis was used to describe the implementing policies and guidelines of PCIC. The farmer?s level of awareness about the program, level of agreement about the effects of the program, and level of satisfaction about the program were determined using Likert scale. Results of the study revealed that in 2015, PCIC catered to 41,500 farmers in Region III, 68% of which availed rice crop insurance worth Php 857 million. Although PCIC only covered 12% of rice farmers in Pampanga, it was still able to accomplish its target amount to cover under different programs for Region III in the same year. The study also showed that RCI was highly subsidized by the government. Moreover, only 0.05% of the operational expenses can be paid through its income not generated from premiums. Of the 50 insured farmer respondents only 42% (84%) were aware that they have Rice Crop Insurance. The rest of the insured farmer respondents did not know that the government gave them free insurance premiums under the Registry System for Basic Sectors in Agriculture (RSBSA). At the barangay level, farmer?s names were listed. However, the farmers were not informed that they were part of the program. Overall, insured farmers have moderate level of awareness, while uninsured farmers have low level of awareness about the program. The study showed that after availing crop insurance, farmers had changed their sources of credit, thereby increasing the number of farmers borrowing from cooperatives and banks. Consequently, farmers were able to avail larger amount of loan with lower interest rate Among the 42 farmers interviewed, 40% agreed that RCI influenced their decision on the level of input use and decision to expand farm area. It was shown further in the study That PCIC delivered indemnity payments on time. The average amount of loss per hectare was Php 13, 023 while the average indemnity per hectare was Php4, 487. Consequently, the average reduction in the amount of losses was significantly reduced due to the indemnity payments received by farmers. The study also showed that the amount of indemnity payments received by farmers can only help them partially pay for their loans. Nonetheless, the farmers were very satisfied with the services given by PCIC, while the lending conduits were extremely satisfied with the services. Also, PCIC was satisfied with the services they provided for farmers, except for the timeliness of indemnities paid. Based on the results of the study, it is recommended for the PCIC Region III to devise efficient and effective techniques to educate farmers about Rice Crop Insurance. Likewise, more PCIC Personnel should be deployed during calamities that affect the entire region, to accommodate all insured farmers at the earliest time.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2016 A14 M43

Document Type

Thesis

This document is currently not available here.

Share

COinS