DPCIC, IRRI, & PhilRice Ink Landmark Agreement Boosting Rice Farming and Insurance Ecosystem in the Country

A groundbreaking memorandum of agreement (MOA) signed today at the Philippine International Convention Center heralds a new era for rice farming and insurance in the Philippines. This new partnership features the Philippine Crop Insurance Corporation (PCIC), led by its President, Atty. JB Jovy C. Bernabe; the International Rice Research Institute (IRRI), with its Interim Director General Dr. Ajay Kohli; and the Philippine Rice Research Institute (PhilRice), helmed by its Executive Director, Dr. John C. De Leon. 

The collaboration aims to develop and simulate an Area-Based Yield Index Insurance (ARBY) product, an innovative agri-risk transfer mechanism. Under this scheme, compensation isn't based on individual farm losses but is instead determined by the average harvested yield of a designated area, such as a Barangay or Municipality. This threshold is generally set as a fraction of the area's historical average yield, typically ranging between 50% and 80%. If this average yield dips below the insured limit, a payout is made—even if a specific policyholder's individual farm yield remains unscathed.

During the momentous occasion, Atty. Bernabe emphasized the significant strides PCIC has taken over the years, asserting, "With nearly four million farmers and fisherfolk insured annually, this growth is largely due to the unwavering support from the government and our main stakeholders, the country's farmers and fisherfolk." Addressing the growing concern over climate change's impact on agriculture, he underscored the need to adapt and innovate. "Our initiative towards the development of ARBY for rice is a proactive response to our present requirements," Bernabe elaborated. He emphasized the transformative nature of the ARBY system, which will rely on a predetermined yield index for a given region, providing transparent and equitable support to those in need.

A cornerstone in the feasibility of this venture is the Philippine Rice Information System (PRISM), the first satellite-based rice monitoring mechanism in Southeast Asia developed by CGIAR scientists at IRRI in partnership with the Department of Agriculture. Dr. De Leon of PhilRice highlighted the transformative power of technology in agriculture. "The potential of remote sensing technology, specifically the Philippine Rice Information System (PRISM), in crop insurance is vast," he said. Dr. De Leon celebrated the resilience and optimism of farmers, noting, "Farmers' enduring spirit has found a new ally in technology. The collaboration with PCIC and IRRI will let us apply invaluable data to the critical realm of agricultural insurance, marking an exciting evolution in the sector."

Meanwhile, Dr. Kohli from IRRI spotlighted the crucial role of financial aspects and collaboration in ensuring sustainable agricultural practices. "It's imperative that we capitalize on our research rather than letting it sit on the shelves," Dr. Kohli remarked. He stressed the need for symbiotic relationships, stating, "Financial agencies must also benefit from supporting initiatives aimed at aiding farmers, women, and the youth." Thanking PCIC and PhilRice, Dr. Kohli expressed his enthusiasm for the Climber Project's next phase, which is expected to harness technological advances for the well-being of the farming community.

In a further boost to this collaborative endeavor, the project will kick-start its initiatives by simulating the ARBY products in three significant provinces in the country: Isabela, Camarines Sur, and Capiz. This pioneering phase aims to empower an initial batch of 3,000 rice farmers. But the vision extends far beyond this number—with aspirations to bring millions more in the years to come.

This MOA isn't merely an agreement—it's a testament to the future of rice farming and insurance in the Philippines. With the collective expertise of PCIC, IRRI, and PhilRice, and the backing of sophisticated tools like PRISM, the nation sets a new trajectory, poised to empower and protect its agricultural community like never before.

Also present during the signing are PCIC representatives, Mr. Segundo Guerero, Acting Senior Vice President, Mr. Sem Cordial, Acting Vice President for Risk Management Office, Mr. Israel Dela Cruz, Department Manager, Planning and Management Information Office and Mr. Manuel Cortina, Department Manager, Business Development and Marketing Department.