Crop Insurance for Rice Amount of Cover Rice crop insurance covers those that are: (a) inbred

varieties which can be irrigated/rain fed and seed production and (b) hybrid varieties which can be commercial production (F1) and seed production (AxR). The coverage of the insurance is the cost of production inputs per Farm Plan and Budget. In other cases, the farmers may opt to cover an additional amount which is up to 20 % of the value of the expected yield. Below are the prescribed cover ceilings: Inbred Varieties Irrigated/ Rainfed Seed Production Php 39, 000 per ha. Php 41, 000 per ha.

Hybrid Varieties Commercial Production (F1) Seed Production (AxR) Types of Insurance Cover There are two types of insurance coverage, namely Multi-Risk Cover and Natural Disaster Cover. The main difference between the two is, Multi Risk Cover includes pest and diseases damage, while in Natural Disaster Cover, it only includes natural disasters such as floods, drought, earthquake and volcanic eruption. Period of Cover The insurance coverage starts, whichever upon the issuance of the Certificate of Insurance Cover (CIC) or the actual date of seeding or upon transplanting comes later. The end of the insurance coverage is up to harvesting. Insurable Rice Varieties According to PCIC, any rice variety can be insured as long as the National Seed Industry Council (NSIC) approves it for production. Accredited NSIC rice varieties examples are, Mestiso 4 or NSIC Rc124H, Mestiso 5 or NSIC Rc126H, Mestiso 6 or NSIC RC132H, Tubigan 3 or NSIC Rc13, Mabango 1 or NSIC RC128, Malagkit 1 or NSIC Rc13, Malagkit 2 or NSIC Rc15, etc. Premium Rate Although premium rate is variable per region, per season and per risk classification, a guideline regarding premium rate is still used as a basis. This shall be shared by the farmer, lending institution and the government. There are two types of farmers which can avail rice insurance and that are Borrowing Php 42, 000 per ha. Php 52, 000 per ha.

Farmers and Self Financed Farmers. Borrowing farmers are those who borrow from lending institutions while self finance farmers are those who do not borrow from lending institutions. There are two types of seasons, wet and dry. Wet crop season are crops planted on May to October while dry crop season are crops planted on November to April. Below is the summary of premium rates and sharing (%) per type of farmer. A. Borrowing Farmers Multi-Risk Cover Low 1.30 2.26 5.75 9.31 Wet Medium 2.59 2.26 5.75 10.60 Wet Medium 2.12 1.95 4.90 8.97 High Low 3.89 0.80 2.26 1.39 5.75 3.53 11.90 5.72 Natural Disaster Cover High 3.18 1.95 4.90 10.03 Low 0.35 0.65 1.62 2.62 Dry Medium 1.59 1.39 3.53 6.51 Dry Medium 0.70 0.65 1.62 2.97 High 2.39 1.39 3.53 7.31

Farmer Lending Ins. Govt Total

Farmer Lending Ins. Govt Total

Low 1.06 1.95 4.90 7.91

High 1.05 0.65 1.62 3.32

B. Self-Financed Farmers Multi-Risk Cover Low 3.56 5.75 9.31 Wet Medium 4.85 5.75 10.60 Wet Medium 4.07 4.90 8.97 High Low 6.15 2.19 5.75 3.53 11.90 5.72 Natural Disaster Cover High 5.13 4.90 10.03 Low 1.00 1.62 2.62 Dry Medium 2.98 3.53 6.51 Dry Medium 1.35 1.62 2.97 High 3.78 3.53 7.31

Farmer Govt Total

Farmer Govt Total

Low 3.01 4.90 7.91

High 1.70 1.63 3.32

Covered Risks Rice insurance covers three main categories of risks namely, (a) natural disaster such as typhoons, flood, drought, earthquake and volcanic eruption, (b) plant diseases such as tungro, rice blast/neck rot, grassy stunt, bacterial leaf blight and sheath blight, (c) pest infestation by rats, locusts, armyworms/cutworms, stemborer, black bugs and brown planthopper/hopperburn.

Excluded Risks There are losses that are not covered by the insurance such as losses arising from fire of any source; theft and robbery, pillage, sequestration, strikes, war, invasion, acts of foreign enemies, hostilities; any measure resorted to by the government in the larger interest of the public; avoidable risks emanating from or due to neglect of the assured/non-compliance with the accepted farm management practices by the person authorized by him to work and care for the insured crop; strong wind and heavy rain not induced by typhoon; ad any cause or risk not specified in the covered risks. And losses occurring prior to the effectively of insurance; prior to seed growth; beyond the schedule dates of the harvest as appearing in the FPB and CIC unless reported in writing due to the PCIC at least 10 days before the actual harvest; and after harvest. Eligibility of Farmer/Farmer Organization Automatic eligibility when a farmer or farmer organization borrows for production from any lending institution, supervised by the government such as GOCC/GFIs/NGOs/DILG-LGU-sponsored credit programs. If the farmer or farmer organization or peoples organization is self financed, as long as they agree to follow the technical supervision of PCIC-accredited agricultural production technician, they are allowed to avail rice insurance. Farm Eligibility Effective irrigation and drainage system is a must. If farm is rainfed, it is only eligible during wet season which will be subjected to planting cut-off date. A farm is not eligible if it is part of a riverbed, lakebed, marshland, shoreline or riverbank. References: PCARRD-DOST. 2004. NSIC Approved Rice Varieties. Retrieved on December 29, 2011 from http://maidon.pcarrd.dost.gov.ph/joomla/index.php?option=com_content&task=view&id=625&Itemid= 864