This study evaluates the feasibility and potential benefits of introducing agricultural insurance in the Philippines’ Bangsamoro Autonomous Region in Muslim Mindanao. The intent is to enhance the resilience of small-scale farmers in BARMM against extreme natural events such as floods, droughts and hurricanes.
Mr Benni refers to prior research indicating that agricultural productivity in the region is not meeting its potential due to “limited access to credit and agricultural insurance, low farm mechanization and inadequate post-harvest facilities, inadequate irrigation, scant support to research and development, unstable extension service, and incomplete agrarian reform program implementation.”
When the idea of purchasing insurance was introduced to farmers in BARMM, some were receptive to the idea while others were not. The latter group may benefit from education on the potential benefits of insurance.
The Philippine Crop Insurance Company is a government entity that protects farmers against losses to crops - based on weather conditions or actual yields - as well as damage toassets such as harvesting and processing equipment. However, PCIC enrollments have been low in BARMM due to conflict in the region and lack of collaboration with local government units.
To improve farmers’ access to insurance, Mr Benni suggests: (1) reviewing the insurance projects of the World Bank and the Asian Development Bank that are ongoing elsewhere in the Philippines to see if they can be replicated in BARMM; (2) increasing outreach by PCIC in the region; and (3) piloting a index insurance product in BARMM that complies with Islamic principles.
This is a summary of a paper published by the UN Food and Agriculture Organization and written by Niclas Benni.
Summary by: Courtney Huang
