This study evaluates the impact of the agricultural insurance program on agricultural producers in Central Visayas (Region VII) on the premise that agricultural crop insurance is a potential risk-mitigating tool. Agricultural insurance, through the Philippine Crop Insurance Corporation (PCIC), is seen as a mechanism that can be used by farmers to manage risks and improve their well-being. The Cebu provincial government allocated PHP 8 million in 2015 and PHP 10 million in 2016 for agricultural insurance. The corn farmers need only to comply with the administrative requirements to enjoy the benefits of agricultural insurance.
Data were gathered through on-site observation and a survey instrument designed by PIDS in collaboration with the regional partner universities. For Central Visayas, 510 corn farmers listed in either the PCIC client list or the RSBSA were randomly chosen from the municipalities in the region. They were categorized into three types corresponding to the treatment and control groups of the study. Findings showed that agricultural insurance has a positive and significant impact on incomes of corn farmers, particularly those with corn farms greater than 0.5 hectare.
Six variables were found to have significant impacts to availment of agricultural insurance by corn farmers. These were membership in farmers’ organization, size of farmlands, educational attainment of the farmer, location of the farmer’s household relative to the PCIC office, status of land tenure, and access to community-level facilities. Given the importance of the agricultural sector and its positive impact to corn farmers in Central Visayas, what is important is to address how corn farmers can be motivated to avail themselves of agricultural insurance and enjoy its benefits.