Crop insurance hike sought in wake of storm ruin

LUCENA CITY—An official of the militant peasant group Kilusang Magbubukid ng Pilipinas (KMP) on Wednesday warned the Department of Agriculture (DA) and the National Food Authority (NFA) against exploiting the tragedy in typhoon-ravaged areas in Central Luzon to hide the true rice situation in the country.

The statement was made as a bill was filed at the House seeking to increase government investment in crop insurance to “safeguard the interests of local farmers.”

The bill, filed by the party-list group Coop Natcco, would amend the law that created the Agricultural Competitiveness Enhancement Fund (Acef) so that 10 percent of funds that go to Acef could be allotted for the Philippine Crop Insurance Corp. (PCIC).

Farmers’ cushion

Rep. Anthony Bravo, of Coop Natcco, said in a statement that agricultural insurance could help farmers deal with losses brought by natural disasters, like Typhoon “Santi,” which had all but wiped out rice harvests in Central Luzon.

In the statement, Bravo said the government has not fulfilled its obligations to the agricultural insurance program that would have served as a cushion for farmers in times of calamities.

According to the government think tank Philippine Institute for Development Studies (PIDS), P12-billion worth of rice crops has been lost from 1995 to 2004. PIDS estimates that 4.1 million hectares of rice and corn fields are hit by typhoons on a yearly basis.

“Agriculture is very vulnerable to the unpredictability of nature particularly here in the Philippines,” said Bravo in the statement.

“The capital contribution from the government came in very small amounts,” said the statement. “The total premium arrears of government have been growing,” it added.

Access to Acef, Bravo said, “can help bridge the growing gap in needed funds and funds actually provided by the national government to help address the growing need of our farmers for crop insurance.”

Under the law that created Acef, Republic Act No. 8178, proceeds from tariffs on crops, like rice, go to Acef. These are set aside for farm-to-market roads, post-harvest equipment and facilities, credit, research and development and other farm-related projects.

P1.7B in duties

At least P1.7 billion in duties and taxes had been paid for imported rice this year, which had been shouldered by the National Food Authority (NFA) through government-to-government rice import transactions.

A consumers group, Ang Gawad Pinoy Consumers Cooperative, had issued a statement asking the government to allow the private sector to handle importation to spare the NFA from paying duties.

In a phone interview, KMP secretary general Antonio Flores said he foresees the NFA and DA using the effects of Typhoon Santi to justify continued importation by the NFA.

Flores predicted DA would also capitalize on the destruction of P2-billion worth of palay in several rice producing provinces caused by Santi as a convenient excuse for missing their target of rice self-sufficiency this year.

Agriculture Secretary Proceso Alcala repeatedly announced that rice sufficiency targets would be met this year. The DA projected a harvest of 20 million metric tons.

But according to DA’s preliminary data, as of Sunday, a total of 255,500 ha of rice land had been damaged by Santi.

The DA report said worst hit was Nueva Ecija with 160,000 ha of rice farms ravaged; Tarlac, 50,000 ha; Bulacan, 29,000 ha; Pampanga, 4,000 ha; Bataan, 2,000 ha; Aurora, 1,500 ha and Zambales, 9,000 ha.

Climate change

Agriculture Undersecretary Dante S. Delima said Santi destroyed 133,000 metric tons of palay, which was equivalent to 15 percent of the total rice production in the region during the third quarter.

Other lawmakers, like Sen. Loren Legarda, had warned of the need to boost support for the agricultural sector in light of the disastrous effects of climate change.

Earlier this year, the senator said areas hit by recent disasters required the government to “fast-track the recovery of the agriculture sector to maintain our food supply and avert escalation of prices of basic commodities.” Delfin T. Mallari Jr., Inquirer Southern Luzon