Republic of the Philippines
HOUSE OF RERESENTATIVES-
Quezon City, Philippines »

NINETEENTH CONGRESS
First Regular Session

House Bill No. 3138

Introduced by HON. NICANOR M. BRIONES
Representative, AGAP Party List

EXPLANATORY NOTE

Over the years, the country’s ag-icultural output has been in a constant
uphill and downhill trend. The decline in agricultural output is often
attributed to the impact of adverse weather conditions such as typhoons,
floods, and droughts, farm infestations, and even volcanic eruptions. Farmers
and fisherfolk are left helpless as they assess the extent of the losses they
incur. Without any viable produce, tnese agricultural producers are unable
to recover the costs of their production.

The government has implemented various insurance programs for
different agricultural sectors. However, in 2017', the Philippine Institute for
Development Studies identified that there has been a significant lack of
awareness among coconut farmers in particular, regarding the availability of
insurance products. The study revecled that these farmers did not avail of
insurance products due to lack of awareness and fear of paying premiums.

‘The same still rings true. The tedious process and the bureaucracy
availing insurance, as well as the requirement of premium payments,
discourage agricultural producers from obtaining assistance from the
government. While the government’s agricultural insurance programs ars
valuable and beneficial, there is a need to create a more accessible and direct
form of assistance to agricultural producers for a more expeditious recovery.

The 1987 Constitution, in Articie XII Section 1, declares that the goals
of the national economy are a more equitable distribution of opportunities,
income, and wealth; a sustained increase in the amount of goods and services
produced by the nation for the beriefit of the people; and an expanding
productivity as the key to raising the quality of life for all, especially the
underprivileged. In response to the need to promote equity in economic

* Lansingan, et.al (2017). Evaluation of the Agricultural Insurance Program of the PCIC on Agricultural Producers
in Region 1V-A. Philippine Institute for Development Studies Discussion Paper Series No. 2017-015. Retrieved from
https:/ /pidswebs pids.gov.ph /CDN / PUBLICATIONS /pidsdps1715.pdf



opportunities, ensure supply of goods, and enhance productivity, this bill is
therefore filed,

This bill proposes the establishment of an Agricultural Calamity
Indemnification Fund as a form of special cash indemnity to agricultural
producers who suffer losses from typhoons, floods, droughts, unavoidable
crop infestations, and other natural calamities, The fund shall be distributed
based on the amount of losses and shall not be less than fifty percent of their
production cest.

‘This program will be headed by the Department of Agriculture. The DA
is tasked to ensure that distribution will be speedy and efficient, with
penaities in place for those who will take undue advantage of this program.

‘Through this measure, agricultural producers will immediately regain
the capacity to start over, thereby encouraging them to continue and even
improve production. This program shall be implemented to ensure resilience
of food production and stability of food supply across the country. With
adequate support from the government, it is hoped that food security will
eventually be attained.

With the foregoing premises considered, the approval of this bill is
earnestly sought.



Republic of the Philippines
HOUSE OF RE}RESENTATIVES
Quezon City, Philippines

NINETEENTH CONGRESS
First Regular Session

House Bill No. 3138

Introduced by HON. iWICANOR M. BRIONES
Representative, AGAP Party List

AN ACT
ESTABLISHING THE AGRICULTURAL CALAMITY INDEMNIFICATION
FUND PROGRAM AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and Hous? of Representatives of the Philippines in
congress assembled:

SECTION 1 Short Title of Act. - This Act shall be known as
"Agricultural Calamity Indemnification Act of 2022”.

SEC. 2. Declaration of Policy. — It is the policy of the State to ensure
food security, intensify food product on, and increase climate and calamity
resiliency of the country’s agricultural producers by providing support to
agriculture through adequate financial, production, and other support
services.

Towards this end, the State shall alleviate the financial burden of
farmers and fish farmers/fisherfolk/ growers due to uncompensated losses
arising from destruction of crops and fisheries farms brought by natural
disasters, calamities, and unprecedented infestations, diseases and
epidemics through a national agricul‘ural calamity indemnification program.

SEC, 3. Agricultural Calamity Indemnification Fund Program. -
The Agricultural Calamity Indemnification Fund Program, hereinafter referred
to as the Program, shall be hereby established as a special calamity cash
indemnity for farmers and fish farmers/fisherfolk/growers to mitigate the
losses suffered from natural cisasters, calamities, unprecedented
infestations, diseases, or epidemics.

The Program shall be complementary and supplementary to other
similar undertakings of the government and shall not be a replacement for
any existing programs for agricultura. producers already implemented by any


government agency.

The amount of cash indemnity *o be given to eligible beneficiaries shall
be determined based on the amount or number of crops or fisheries lost or
destroyed from the identified calamity. The specific rates shall be fixed by the
pon the recommendation of the Department of Agriculture, based
vrent costs of production. The amount of cash indemnity to be
received by each beneficiary shall no‘ be less than fifty percent (50%) of the
beneficiary's production cost.

SEC. 4, Eligible beneficiaries. — To be eligible to receive the cash
indemnity, farmers and fish farmers /jisherfolk/growers must be registered in
the Registry System for Basic Sectors in Agriculture (RSBSA) of the
Department of Agriculture.

Eligible farmers and fish farmers/fisherfolk/growers shall have
suffered losses in relation to a natural disaster, calamity, unprecedented
infestation, disease, or epidemic affecting their agricultural produce. They
shall submit proof of losses, such as 5ut not limited to the actual production
count; amount or number of crops and fisheries unharvested, lost, or
destroyed; proof of farm location; ard registration with the Department of
Agriculture

SEC. 5. Lead Agency. - The Department of Agriculture (DA) shall serve
as the lead agency to carry out the provisions of this Act. In the
implementation of this Act, the DA skall perform the following functions:

(a) Ensure comprehensive registration of agricultural producers in the
RSBSA;

{b) Assess and identify cligible beneficiaries based on requirements
submitted;

{c) Formulate and recommend to the President specific rates for calamity
indemnification of different types of agricultural producers based on
current prices;

(a) Determine and declare the existence of unprecedented infestations,
diseases, or epidemics affecting agricultural produce in localiti

(e) Formulate and implement a speedy, efficient, and co:
distribution strategy /mechanism of the calamity indemnification;

{f Coordinate with various national and local government agencies,
including non-government and private sector organizations, to full
ensure implementation of the provisions of this Act;

{g) Submit an annual report to Congress on the full implementation of the
Program;

{h} Perform any other acts as may 2e necessary or incidental to the proper
implementation of this Act.

SEC. 6, Appropriations. - The Program shall be funded from the tariff
revenues from importation of crops ard fisheries /marine/seafood products of
the previous year and shall be included in the appropriations of the


Depariment of Agriculture under the annual General Appropriations Act as
may be determined by the Department of Finance and Department of Budget
and Management.

SEC. 7. Prohibited Acts and Corresponding Penalties. - Any person,
whether acting in conspiracy with public officials or not, who by act or
omission, inserts or allows the insertion of data or false information, or diverts
or allows the diversion of information that ought to be contained in the
registry, or transfers or aids in the transfer of the cash indemnity to persons
other than the eligible beneficiaries, shall be penalized with a fine of not less
than thirty thousand pesos (Php 30,000.00) nor more than one hundred
thousand pesos (Php 100,000.00) or imprisonment of not less than three
months (3) nor more than three (3) years, or both, at the discretion of the
court: Provided, That if the offense is committed by a corporation, trust, firm,
partnership, association or any other entity, the penalty shall be imposed
upon the guilty officer or officers of such corporation, trust, firm, partnership,
association or entity: Provided, further, That in addition to the penalties that
may be imposed by the court, the offender punished under this section shall
be subject to perpetual disqualification to hold public office: Provided, finally,
‘That if the offender punished under this section is a public official or a
government employee, the accumulated leave credits and retirement benefits,
if any, shall be forfeited in favor of the State.

SEC. 8. Implementing Rules und Regulations. Within sixty (60) days
from effectivity of this Act, the Department of Agriculture, Department of
Finance, and Department of Budget and Management shall, in coordination
with other government agencies concerned and after consultation with
directly affected stakeholders, proraulgate the rules and regulations to
expeditiously implement the provisiors of this Act.

SEC. 9. Separability Clause. - If any provision of this Act shall be
held unconstitutional or invalid, the remaining provisions which are not
affected thereby shall continue to be in full force and effect

SEC. 10, Repealing Clause. ~ All laws, decrees, executive orders, rules
and regulations, and other issuances, or parts thereof, contrary to or
inconsistent with this Act are hereby modified, amended or repealed
accordingly.

SEC. 11. Effectivity. ~ This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general circulation.

Approved,