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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
First Regular Session 
TWENTIETH CONGRESS 
                 House Bill No. 3962
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Introduced by REP. JESUS MANUEL “BONG” C. SUNTAY 
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EXPLANATORY NOTE 
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Our farmers are the bedrock of national sustenance. Yet they are also the most vulnerable, 
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for each typhoon, pestilence, or drought may erase a season’s labor and plunge 
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households into debt. Relief has too often been delayed, politicized, or insufficient. 
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This bill creates a mandatory crop insurance program for small farmers tilling up to eight 
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hectares, with government fully subsidizing premiums for the poorest and most 
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vulnerable. It mandates the use of objective and science-based triggers—weather data, 
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growth stages, and yield thresholds—so that indemnity flows without the need for a state 
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of calamity declaration. 
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By institutionalizing this safety net, the State affirms that no farmer shall face ruin for 
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choosing to feed the nation. This is not charity but justice: a recognition that food security 
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for all depends on security for those who till the land. 
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In view of the foregoing, the immediate passage of this bill is earnestly sought. 
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REP. JESUS MANUEL “BONG” C. SUNTAY 
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August 26, 2025
8:00 am


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
First Regular Session 
TWENTIETH CONGRESS 
                 House Bill No. 3962
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Introduced by REP. JESUS MANUEL “BONG” C. SUNTAY 
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AN ACT ESTABLISHING A MANDATORY CROP INSURANCE 
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COVERAGE FOR SMALL FARMERS, PROVIDING FOR A NATIONAL 
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GOVERNMENT SUBSIDY, AND FOR OTHER PURPOSES 
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
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Congress assembled: 
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Section 1. Short Title. - This Act shall be known as the "Crop Insurance Program for 
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Small Farmers Act of 2025.” 
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Sec. 2. Declaration of Policy. – It Is the policy of the State to promote genuine 
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inclusive growth and alleviate poverty. It is likewise the policy of the State to promote a 
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just and dynamic social order that shall ensure prosperity, promote full employment, a 
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rising standard of living and an improved quality of life for all.  
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Sec. 3. Crop Insurance for Small Farmers Program. – 
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(a) The Department of Agriculture (DA) in coordination with the Philippine Crop
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Insurance Corporation (PCIC) shall develop a special Crop Insurance Program
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for Small Farmers, guided by the following objectives:
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a. Promotion of food security through palay and other crop production;
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b. Provision of immediate support and protection to farmers incurring crop
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losses due to extreme conditions; and
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c. Alleviate the financial burden of farmers due to uncompensated losses.
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(b) The Crop Insurance Program for Small Farmers shall operate under an insurance
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framework including, but not limited to, the following:
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a. The Philippine Atmospheric, Geophysical and Astronomical Services 
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Administration (PAGASA) shall be the primary reference weather station 
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from which observed weather parameter shall be obtained. Other 
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reference weather stations may include other weather stations accredited 
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by PAGASA;  
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b. There shall be an Identified trigger or threshold reference point to serve 
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as a basis of measurement wherein in case of an occurrence of a breach 
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the PCIC is obligated to indemnify and pay the required payout to the 
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insured;  
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c. Phases of crop growth shall be covered by the insurance where a separate 
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trigger and payout may be determined;  
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d. The payout or the insurance payment shall be based on a pre16 
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determined schedule that takes into account the actual area planted; and  
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e. Any breach of the threshold reference point shall be the basis of any 
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payout. Declaration of a State of Calamity in a local government unit shall 
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not be required to trigger he obligation of the PCIC to the insured 
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farmers. 
 
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Sec. 4. Terms and Conditions. – Within ninety (90) days after the effectivity of this 
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Act, the Department of Agriculture (DA) in coordination with the Philippine Crop 
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Insurance Corporation (PCIC), and in consultation with the Insurance Commission (IC) 
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shall formulate the terms and conditions which shall govern a comprehensive insurance 
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scheme for the benefit of the farmers. The terms and conditions shall be published in the 
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Official Gazette or in a newspaper of general circulation in the Philippines. 
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Sec. 5. Insured Farmers under the Crop Insurance Program for Small Farmers and 
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Premium Subsidy. –  
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(a) All farmers of palay and other crops owning or cultivating eight (8) hectares of 
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farmland and below shall automatically be covered by the Crop Insurance Program 
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for small farmers. Subsidy for insurance premiums shall be 2 determined by the 
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following qualifications:  
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a. For farmers owning or cultivating five (5) hectares of farmland and below, 
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the National Government shall fully subsidize their insurance premiums;  
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b. For farmers owning or cultivating more than five (5) hectares but not 
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exceeding eight (8) hectares of farmland, the National Government shall 
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only cover and subsidize fifty percent(50%) of their insurance premiums.  
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(b) The DA together with the Department of Agrarian Reform (DAR) and PCIC, in 
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coordination with local government units, shall develop, maintain and annually 
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update a database of farmers covered under this Program, and determine their 
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qualifications as to the type of subsidy covered;  
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(c) The DA and PCIC shall develop a system for the processing and payment of the 
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fifty percent (50%) insurance premiums not covered by the National Government 
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subsidy. Such premium may be paid in money or in a quantity of paddy the value 
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of which shall be equal to the amount of the premium due to the farmer, such value 
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being computed according to the current market price of the crop as determined 
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by 19 DA.  
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(d) All farmers covered under this Act shall be deemed to have entered into a contract 
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of insurance with the National Government through the PCIC;  
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(e) Small farmers who are currently covered by an existing crop insurance shall have 
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an option to choose whether to remain under their existing crop insurance or be 
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covered by the Crop Insurance Program for small farmers. 
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Sec. 6. Rate of Premium. – The rate of premium shall be determined by the Board 
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of the Philippine Crop Insurance Corporation (PCIC) subject to the approval by the 
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President of the Philippines. 
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Sec. 7. Source of Funding. – In Accordance with Section 5(a) of this Act, insurance 
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premiums of small farmers shall be subsidized by the National Government. The funding 
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for this Program shall be deemed appropriated from the funds of the Department of 
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Agriculture. 
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Initially, the premium subsidy for the first year of implementation shall be drawn 
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on a month-to-month basis, depending on the actual amount of insurance underwritten 
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by the PCIC. Subsequently, projections of the premium subsidy shall be submitted by the 
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PCIC to the President, and upon approval of the President shall be included in the 
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National Expenditure Program. 
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Sec. 8. Claim to Indemnity. – In cases where the identified trigger or threshold 
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reference point has been breached, the insured person shall submit a written claim to 
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indemnity in respect of losses incurred to the municipal agriculturist. The municipal 
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agriculturist shall then forward the written claim to indemnity to the PCIC. The payment 
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of the Indemnity shall be in accordance with the terms and conditions set forth by the DA 
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and PCIC under Section 4 of this Act. 
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Sec. 9. Implementing Rules and Regulations. – The The Department of Agriculture, 
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and the Philippine Crop Insurance Corporation, in consultation with relevant government 
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agencies and instrumentalities, shall provide the necessary implementing rules and 
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regulations within sixty (60) days upon the approval of this Act. Such rules and 
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regulations shall take effect after they have been made and shall be published in at least 
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two (2) newspapers of general circulation 
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Sec. 13. Separability Clause. - If any part or provision of this Act shall be declared 
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unconstitutional or invalid, the other provisions hereof which are not affected thereby 
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shall remain in full force and effect. 
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Sec. 14. Repealing Clause. - All laws, decrees, executive orders, memorandum 
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orders, memorandum circulars, administrative orders, ordinances or parts thereof which 
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are inconsistent with the provisions of this Act are hereby deemed repealed or modified 
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accordingly. 
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Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
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in the Official Gazette or in a newspaper of national circulation.  
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        Approved,  
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