New Insurance Initiative for Philippine Agroforestry Products Launched by PCIC and DENR

The Philippine Crop Insurance Corporation (PCIC) has broadened its insurance programs to include forest and agroforestry plantations, thanks to a new Memorandum of Agreement (MOA) with the Department of Environment and Natural Resources (DENR). This pivotal agreement was signed on February 14, 2022, by DENR Secretary Roy A. Cimatu and PCIC President Jovy C. Bernabe, establishing a formal partnership aimed at enhancing the resilience and sustainability of the nation's forestry sector.

 

Under this partnership, the PCIC's insurance coverage is specifically designed to safeguard the welfare of forest farmers by compensating for losses or damages to forest crops. This strategic move not only stabilizes production and income but also ensures quick funds are available for farmers to restart their operations after a setback, thereby maintaining continuity and productivity in forest farming. Furthermore, the introduction of this insurance package is poised to encourage banks and other financial institutions to extend credit facilities to those involved in forest farming, recognizing the reduced financial risks due to the support of insurance coverage.

 

The DENR plays a crucial role in facilitating this initiative by connecting its network of program partners involved in forest development to the PCIC. These partners include People’s Organizations, Indigenous Peoples Organizations, cooperatives, private individuals, corporations, and tenure holders, all of whom can now benefit from robust insurance protection.

 

The insurance coverage extends to a variety of forestry and agroforestry species previously covered under PCIC's High Value Crops (HVCs) insurance program. These include well-known species such as falcata, mahogany, gmelina, narra, lauan, rubber, bamboo, coffee, cacao, and various fruit-bearing trees. In a significant expansion, new species have been added to the insurance program as a direct result of the DENR-PCIC partnership. Additional species now eligible for coverage include mangium, auri, bagalunga, ditta, bagras, kamagong, molave, ilang-ilang, bignai, and duhat.

 

This initiative is part of a broader strategy to accelerate economic recovery in the wake of the pandemic and to bolster the forestry sector's contribution to the national economy. By providing financial security and support through insurance, the partnership between DENR and PCIC is expected to foster a more resilient forestry sector that can continue to thrive and expand, even in the face of challenges. This move is not just about economic growth; it’s also about ensuring environmental sustainability and promoting responsible stewardship of the nation’s valuable forest resources.