Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
TWENTIETH CONGRESS
First Regular Session
HOUSE BILL NO. 3197
Introduced by REP. EMILIO BERNARDINO L. YULO
EXPLANATORY NOTE
The agricultural sector plays a pivotal role in ensuring national food security, sustaining
rural livelihoods, and driving inclusive economic development. Yet, it remains highly susceptible
to the adverse impacts of climate change, natural disasters, pest outbreaks, and animal diseases.
These recurring risks continue to erode the productivity and income of Filipino farmers and
fisherfolk, many of whom lack the financial capacity to recover from such losses.
Republic Act No. 8175, which amended Presidential Decree No. 1467 and created the
Philippine Crop Insurance Corporation (PCIC), laid the foundation for a government-supported
crop insurance system. However, decades after its implementation, the coverage remains largely
limited to palay and a few other crops, with minimal participation from the private sector and
limited mechanisms to cover other agricultural assets such as livestock, aquaculture, and agri-
infrastructure.
This bill seeks to expand the services of the PCIC to provide broader, more responsive,
and inclusive agricultural insurance coverage. It mandates the PCIC to cover all agricultural
commodities, including livestock, aquaculture, agroforestry, forest plantations, and related
infrastructure and equipment. It also empowers the Corporation to offer reinsurance services and
enter into reinsurance agreements with private agricultural insurers, cooperatives, and farmers'
associations, thereby fostering active private sector participation in agricultural insurance.
The proposed amendments to Section 1 and Section 3.11 of P.D. No. 1467
institutionalize this expanded mandate. They allow the Corporation to extend its reach, mobilize
internal funds more effectively, and promote a diversified and competitive agricultural insurance
landscape.
August 6, 2025
11:41 am


By strengthening and expanding agricultural insurance, the measure not only protects
producers from economic shocks but also supports food security, rural development, and the
long-term modernization of Philippine agriculture. In the face of worsening climate events and
market volatility, this legislation is a critical step in building a more resilient and equitable
agricultural economy.
In view of the foregoing, approval of this bill is earnestly sought.
REP. EMILIO BERNARDINO L. YULO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
TWENTIETH CONGRESS
First Regular Session
HOUSE BILL NO. 3197
Introduced by REP. EMILIO BERNARDINO L. YULO
AN ACT
EXPANDING THE SERVICES OF THE PHILIPPINE CROP INSURANCE
CORPORATION AND ENCOURAGING PRIVATE SECTOR
PARTICIPATION IN AGRICULTURAL INSURANCE, FURTHER
AMENDING SECTIONS 1 AND 3.11 OF PRESIDENTIAL DECREE NO. 1467,
CREATING THE PHILIPPINE CROP INSURANCE CORPORATION, AS
AMENDED
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:
SECTION 1. It shall be the policy of the State to establish, strengthen, and maintain a
comprehensive and responsive agricultural insurance program as a vital mechanism for
managing the risks inherent in agricultural production. This program shall aim to protect and
stabilize the income of agricultural producers from losses arising from natural calamities, plant
and animal diseases, pest infestations, or other unforeseen events affecting all types of
agricultural commodities, including crops, livestock, aquaculture, and related agricultural
facilities and infrastructure. It shall also be the policy of the State to promote the modernization
of the agricultural sector by mitigating the risks that hinder its development and limit broader
market participation. To this end, the State shall promote active participation of the private sector
in delivering agricultural insurance by authorizing the Philippine Crop Insurance Corporation
(PCIC) to undertake reinsurance agreements with private sector agricultural insurers, and to
expand its insurance services to cover livestock, aquaculture and fisheries, agro-fisheries, and
forest plantations.
SEC. 2. Section 1 of Presidential Decree No. 1467, as amended, is hereby further


amended, to read as follows:
“SEC. 1. Creation of the Philippine Crop Insurance Corporation. –
There is hereby created a body corporate to be known as the “Philippine Crop
Insurance Corporation” (PCIC and herein called the Corporation) which shall be
attached to the Department of Agriculture for budgetary purposes. The
Corporation shall insure [qualified] farmers against losses arising from natural
calamities, plant diseases, and pest infestations. [Initially,] [t]The Corporation
shall
provide
insurance
coverage
for
ALL
AGRICULTURAL
COMMODITIES, INCLUDING palay crops, and [later on to] other crops,
without prejudice to the inclusion of other non-crop agricultural assets, such as
[but not limited to] LIVESTOCK, AQUACULTURE AND FISHERY,
AGROFORESTRY, FOREST PLANTATIONS, machineries, equipment,
transport facilities, and other related infrastructures, as the Board of Directors of
the Corporation may determine. Such [crop] insurance shall cover, in every case,
the cost of production inputs, the value of the farmer's own labor and those of the
members of his household, including the value of the labor of hired workers, and
a portion of the expected yield as the Board of Directors, in its discretion, decide
to insure. Such insurance protection, however, shall exclude losses arising from
avoidable risks emanating from or due to the negligence, malfeasance or fraud
committed by the insured or any member of his immediate farm household or
employee [or the failure of the insured to follow proven farm practices]. THE
CORPORATION SHALL ALSO OFFER REINSURANCE SERVICES
FOR ENTITIES WILLING TO OFFER AGRICULTURAL INSURANCE.”
SEC. 3. Subsection 3.11 of Section 3 of Presidential Decree No. 1467, as amended, is
hereby further amended to read as follows:
“3.11. To generate internal funds by floating bonds, expansion to other
insurance lines, INCLUDING REINSURANCE AGREEMENTS WITH
AGRICULTURAL COOPERATIVES, FARMERS’ ASSOCIATIONS, AND
OTHER PRIVATE SECTOR PARTICIPANTS IN THE AGRICULTURAL


INSURANCE MARKET, and extending coverage to other areas of agriculture,
SUCH
AS
LIVESTOCK,
AQUACULTURE
AND
FISHERY,
AGROFORESTRY, OR FOREST PLANTATIONS, in order to address THE
insurance needs of the target sector and to do and perform acts and things and to
exercise all the general powers conferred by law upon the Corporation as are
incidental or conducive to the attainment of the objectives of the Corporation.”
SEC. 5. All laws, decrees, executive orders, proclamations, and administrative
regulations, or parts thereof inconsistent herewith are hereby repealed or modified accordingly.
SEC. 6. This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in any newspaper of general circulation.
Approved,