Evaluation of the Impact of the Agricultural Insurance Program of the Philippine Crop Insurance Corporation on Agricultural Producers in Region II - Cagayan Valley
This study aimed to evaluate the impact of agricultural insurance of the Philippine Crop Insurance Corporation (PCIC) on corn farmers in the Cagayan Valley Region, Philippines. A total of 500 corn farmers and were classified into the following treatments: 250 corn farmers with insurance (118 with indemnity claims and 132 without indemnity claim) randomly taken from PCIC agricultural insurance subscribers for 2014 and 2015 matched with 250 without insurance from the RSBSA list. The results show that the factors affecting the probability of PCIC insurance availment by corn farmers are farm size, government transfer income, adoption of hybrid variety, land tenure and the distance of farmer to PCIC Office. Farmers with crop insurance tend to have significantly higher adoption rate of hybrid variety than farmers without crop insurance. The larger the farm size, the higher the probability of getting insurance for their corn farms. Corn farmers who do not own the land they farm and those who received higher government transfers tend to have higher probability of getting of getting agricultural insurance.