Philippine Crop Insurance Corp. (PCIC), a government owned and controlled corporation that implements the insurance protection of farmers from agricultural losses, has been transferred to the Department of Agriculture (DA) from the Department of Finance by President Ferdinand Marcos Jr.

President Marcos said transferring the PCIC to the DA from the Department of Finance (DOF), as well as reorganizing it, would make the PCIC more helpful to small farmers, fisherfolk, and other agricultural stakeholders.

“A strong organizational link between the PCIC and DA is necessary to enhance agricultural insurance protection program highly responsive to the needs of small farmers and fisherfolk and other agricultural stakeholders, with policies and programs aimed at ensuring food security and modernization of the agricultural sector,” President Marcos said in issuing Executive Order No. 60 dated May 13.

According to EO 60 signed by Executive Secretary Lucas Bersamin, streamlining and rationalizing the functional relationships of agencies with complementary mandates are essential to fostering organizational coherence, efficiency, and cooperation within the bureaucracy.

Under the reorganization, the PCIC Board shall now be composed of the presidents of the Land Bank of the Philippines and PCIC; executive director of the Agricultural Credit Policy Council; and one representative from the private insurance industry appointed by the President upon nomination by the Secretary of Finance.

Also part of the board shall be three representatives from the subsistence farmers’ sector, preferably representing agrarian reform beneficiaries, cooperatives or associations from Luzon, Visayas, and Mindanao appointed by the President upon their nomination by different farmer organizations and/or cooperatives.

The appointment or designation of the chairperson, vice-chairperson, and other officers of the board of directors shall be in accordance with RA No. 10149, or the GOCC Governance Act of 2011, the EO stated.

Republic Act (RA) No. 8175, or the Revised Charter of the Philippine Crop Insurance Corporation (PCIC) Act of 1995, created the PCIC, a government-owned or -controlled corporation (GOCC) tasked to provide insurance protection to farmers against losses arising from natural disasters, plant diseases, and pest infestation.

The Administrative Code of 1987 mandates the DA to promote the country’s agricultural development by providing policy framework, public investments, and support services necessary for the advancement of the agricultural sector.