,",. 
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SIXTEENTH CONGRESS OF THE REPUBLIC ) 
I~fl,; •• f t~,_,'i>mgt .. ~ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 JUl-l P5 :18 
SENATE 
S.No. 252 
Introduced by Senator Ralph G. Recto 
Explanatory Note 
Over the past years, the Philippines had been hit by extreme weather events such as 
heavy rains, typhoons and droughts that were more intense than what had been normally 
experienced.' The poor are more severely affected by disasters brought about by climate change 
since they are located in areas more vulnerable to floods and other forms of climate disaster that 
often disrupt agricultural production and affect their livelihoods. These kinds of disasters take a 
great toll on Filipinos, especially those in agriculture. And, needless to say, fanners suffer the 
greater loss. 
About 1.38 million metric tons of rice were wiped out when the Philippines was ravaged 
by storms in the last quarter of 2009 while losses caused by EI Nino may be as much as 816,372 
metric tons of rice worth P12.24 Billion in 2010.1 A most recent incident is Typhoon Pablo 
which ravaged Regions IV-B, VII, IX and CARAGA causing P26.5 Billion damage to 
agriculture in December 2012.2 In February, Tropical Depression Crising brought heavy 
downpour that triggered landslides, flashfloods, widespread flooding in low-lying areas and 
damaged flood-control dikes in Regions IV-B, VII, VIII, IX, X, XI, XII, XIII. In Asuncion, the 
only town in Davao del Norte that sustained damages to agriculture, the toll reached Pll.2 
Million.3 
• 
Crop insurance is a risk management tool designed to mitigate agricultural risks and 
address the consequences of natural disasters to make losses more bearable, especially to 
marginalized farmers. In the Philippines, the Philippine Crop Insurance Corporation (PCIC) 
implements and manages the government program on agricultural insurance. 
When there was no crop insurance yet, the farmers would just patiently wait for the next 
planting season and would even resort to borrowing at usurious rates. 
The crop insurance program extended by the PCIC provided farmers the funds to sustain 
their operation. With the sum of money paid, the farmers are able to immediately replant as soon 
as weather and soil condition permits. Thus, crop insurance ensures the least disruption in crop 
production, ensuring both food security and farm incomes. 
From January to November 2012, the PCIC issued PIO.63 Billion worth of crop 
insurance policies. However, despite the existence of the pcrc, only a small number of farmers 
avail of crop insurance because of the premium that they are required to pay. Although half of 
the premium is subsidized by the government, the remaining 50% is still a burden to many of our 
.http://www.neda.gov.ph/devpulse/pdf files/Devpulse%200n%20Government%20Responds%20to%20EI%20NiroC 
3%B10.pd( (Accessed on March 21, 2013) 
2 NDRRMC UPDATE. SitRep No.- 38 re: Effects of Typhoon "Pablo" (Bopha) 
3 NDRRMC UPDATE. SitRep No. 13 re: Effect of Tropical Depression "Crising", p. 3. 


; ' .... 
poor fanners. For 2012, the PCIC "paid out P195.641 Million to 27,369 fanners and 
fannworkers" of which only "525 were not rice and corn fanners".4 
In support of the policy of the Comprehensive Agrarian Refonn Program in our country 
which states that the welfare of the landless fanners and fann workers will receive the highest 
consideration to promote social justice and to move the nation toward sound rural development 
and industrialization, this bill seeks to give the qualified beneficiaries of the Comprehensive 
Agrarian Refonn Program a: full crop insurance coverage. 
In light of the foregoing, immediate passage of the bill is earnestly sought. 
dbg 
4 http://pcic.gov.ph!index.php!newslfeatured!state-crop-insurance·firm-issues-p10b-worth-of-policies-in-2012! 
(Accessed on March 21, 2013) 


£'t>nutr 
.011.; •• f tit- .:;;'m ,Itt< ~ 
SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL -1 1'5 :18 
SENATE 
S.No. 252 
Introduced by Senator Ralph G. Recto 
AN ACT 
AUTHORIZING THE GRANT OF A FULL CROP INSURANCE COVERAGE TO 
QUALIFIED BENEFICIARIES OF TlIE COMPREHENSIVE AGRARIAN REFORM 
PROGRAM AMENDING FOR THE PURPOSE SECTION 14 OF REPUBLIC ACT NO. 
9700, OTHERWISE KNOWN AS THE "COMPREHENSIVE AGRARIAN REFORM 
PROGRAM EXTENSION WITH REFORMS" 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Section 14 of Republic Act No. 9700, otherwise known as the 
2 
"Comprehensive Agrarian Reform Program Extension with Reforms" is hereby amended to read 
3 
as follows: 
4 
"Sec. 14. Section 37 of Republic Act No. 6657, as amended, is hereby further amended 
5 
to read as follows: 
6 
"SEC. 37. Support Services for the Agrarian Reform Beneficiaries. - The 
7 
State shall aqopt the integrated policy of support services delivery to 
8 
agrarian reform beneficiaries. To this end, the DAR, the Department of 
9 
Finance, and the Bangko Sentral ng Pilipinas (BSP) shall institute 
10 
reforms to liberalize access to credit by agrarian reform beneficiaries. 
11 
The P ARC shall ensure that support services for agrarian reform 
12 
beneficiaries are provided, such as: 
13 
"(a) xxx; 
14 
"xxx; 
15 
16 
17 
18 
19 
20 
21 
22 
"(f) xxx; AND 
"(G) FULL CROP INSURANCE COVERAGE TO 
FARMER 
BENEFICIARIES. COMPENSABLE LOSSES INCLUDE NATURAL 
CALAMITIES 
SUCH 
AS 
TYPHOON, 
FLOOD, 
DROUGHT, 
EARTHQUAKE AND VOLCANIC ERUPTION, PLANT DISEASES 
AND PEST INFESTATIONS. THE TERM OF INSURANCE IS FROM 
PLANTING UP TO EXPECTED DATE OF HARVEST. 
"xxx." 
Page 1 of2 


1 
SEC 2. Implementing Rules and Regulations. -
The Presidential Agrarian Refonn 
2 
Council and the Department of Agrarian Refonn shall provide the necessary implementing rules 
3 
and regulations within thirty (30) days upon the approval of this Act. Such rules and regulations 
4 
shall take effect after they have been made and shall be published in at least two (2) newspapers 
5 
of general circulation. 
6 
SEC. 3. Repealing Clause. - All laws, acts, decrees, executive orders, issuances, and 
7 
rules and regulations or parts thereof which are contrary to and inconsistent with this Act are 
8 
hereby repealed, amended or modified accordingly. 
9 
SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days following its publication 
10 
in at least two (2) newspapers of general circulation or the Official Gazette. 
Approved, 
Page 2 of 2