Factors Associated with Farmer Participation in the Philippine Crop Insurance Corporation (PCIC) Rice Crop Insurance Program in Pila, Laguna
This study determined the factors that affect the decision making of farmers relative to rice crop insurance participation in Pila, Laguna, Philippines, and provide strategic insights for the Philippine Crop Insurance Corporation (PCIC) using a survey questionnaire, Cramer’s V, phi coefficient, point-biserial correlation, and descriptive analysis. Study respondents included sixty rice farmers in Pila, Laguna: thirty PCIC-insured farmers during the second cropping season of 2018, and thirty uninsured rice farmers. Results showed that age, education, number of dependents, group affiliation, gender, civil status, years in farming, farm size, and tenure status had a moderate to strong influence over a farmer’s decision to avail of crop insurance. Moreover, farmer’s production cost, revenue, and income were positively associated with insurance status while tenure status, cost, revenue, and net income of farmers had a negative association with insurance status. Share tenant farmers are likely to avail of PCIC crop insurance when their financial situation deteriorates. Major reasons for availing of PCIC rice crop insurance included the need to secure farm operating capital for the next cropping season and loss recovery in case of crop damage due to calamities and pest infestation. Reasons for not availing rice insurance were unawareness of the insurance program and farm operators having had no authority to decide. Strategic insights for PCIC are offered.