Senator Joseph Victor Ejercito has filed a bill seeking mandatory insurance coverage for small farmers, thereby preventing them from borrowing money at high interest rates.
Senate Bill 390, or Crop Insurance Program for Small Farmers Act, mandates the Department of Agriculture (DA) to provide crop insurance to farmers tilling eight hectares. The scheme will spare the marginal farmers from borrowing money, usually at high interest rates, and subsequently compelling them to sell their products at lower prices to the lenders. Under the measure, the DA would pay half of the insurance premiums on behalf of the farmers.
“Needless to say, crop insurance is imperative for a country like the Philippines, where farmers are the poorest among the various sectors of the society,” Ejercito said.
Ejercito pointed out that the damage wrought by tropical cyclones Karding and Paeng underscored the importance of providing financial assistance to small farmers, who suffer the most when natural disasters strike.
As reported by the DA, Karding damaged at least PHP3.12 billion in agriculture in September while the initial estimated damage caused by Paeng over the weekend was pegged at PHP200 million.
“In an effort to help farmers in times of need, to improve agricultural productivity and to ensure food security, it is imperative to have a mandatory crop insurance,” Ejercito said.