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Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. _____ 
Introduced by Representative Rudys Caesar G. Fariñas I 
EXPLANATORY NOTE 
This proposed measure creates The Bundled Agricultural Loan and Insurance 
(BALI) Program. This agricultural benefit program which provides a bundled 
credit loan with insurance coverage accessible to marginalized farmers and 
fisherfolks. The salient features of this bill include: 
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The loans under the program are non-collateralized and offered with an
annual interest rate of 6% with a loan maturity dependent on the harvest
of the commodity. The loans shall be bundled with insurance coverage
from the Philippine Crop Insurance Corporation.
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Farmers and fisherfolks must be identified and registered in the Registry
System for Basic Sector in Agriculture.
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The Agricultural Credit Policy Council shall manage and control the
implementation of the BALI Program through its lending conduits which
shall select, evaluate, approve and collect loans from borrowers under the
agreed guidelines.
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Funds shall be appropriated for the implementation of the BALI Program.
The funds shall allocated to fund the easy access loan credit facility and
to subsidize the insurance premium payments of individual farmers and
farmer groups.
Hence, the passage of this measure is sought.   
RUDYS CAESAR G. FARIÑAS I 
March 14, 2023
4:40 pm
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Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. _____ 
Introduced by Representative Rudys Caesar G. Fariñas I 
AN ACT 
ESTABLISHING THE BUNDLED AGRICULTURAL LOAN AND INSURANCE 
(BALI) PROGRAM FOR SMALL FARMERS AND FISHERFOLKS AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Declaration of Policy. – It is the policy of the State to support the 
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development of the agriculture and fisheries sectors and ensure food security in 
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the country.  Toward this end, the State needs to revitalize rural development 
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and provide adequate support and services to small farmers and fisherfolks.  By 
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providing easy access to credit and insurance protection under equitable terms, 
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the State will enable small farmers and fisherfolks to improve their production 
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and earnings, uplift their lives and socio-economic status, and thus, contribute 
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to nation-building. 
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SEC. 2. Bundled Agricultural Loan and Insurance (BALI) Program. –   The 
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Bundled Agricultural Loan and Insurance (BALI) Program is an agricultural 
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benefit program which provides a bundled credit loan with insurance coverage 
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accessible to marginalized farmers and fisherfolks. The features of the BALI 
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Program are as follows: 
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a. Non-collateralized loans;
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b. Loans of up to the maximum loanable amount of Fifty thousand pesos
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(P50,000.00) for short term crops or  commodities, and up to One hundred
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fifty thousand pesos (P150,000.00) for  high value crops and long
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gestational crops;
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c. Low applicable interest rate of only six percent (6%) per annum or 0.5
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percent per month;
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d. No advance interest rate shall be deducted from the loan proceeds; 
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e. Loan maturity depends on crop or commodity harvested; and 
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f. Borrowers may avail of new loans without the need for new credit 
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background  investigation. 
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The loan provided under this Act is bundled with an insurance coverage from 
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the Philippine Crop Insurance Corporation to provide protection against loss 
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brought about by extreme weather conditions, natural disaster, pestilence, and 
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other natural causes.  
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SEC. 3. Registry System. – Small farmers and fisherfolks who are beneficiaries 
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under this Act must be  identified and registered in the Registry System for Basic 
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Sector in Agriculture.  Small farmers and fisherfolks include the following: 
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a. Farmers who own not more  than three (3) hectares, tenants, leaseholders, 
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stewards or are engaged in backyard  poultry and  livestock raising;  
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b. Farmworkers who render service for  value as employee or laborer in an 
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agriculture enterprise or farm regardless whether the compensation is 
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paid on a daily, weekly, monthly, or  pakyaw basis  and regular or seasonal 
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farm workers.  Pakyaw refers to a system of hiring a labor group for the 
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performance of a work or service and a lump-sum payment is made either 
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through the group leader or divided among the “pakyaw” workers; and 
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c. Fisherfolks who directly or indirectly engage in  fishing or in taking or 
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processing of fishery or acquatic resources.  
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SEC. 4. Availment of Loans. – In order to afford the small farmers or fisherfolks 
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time to improve their financial condition, the loans availed of under the BALI 
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Program shall be payable starting on the sixth month after receipt of the loan 
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proceeds.   
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SEC. 5. Agricultural Credit Policy Council. – The Agricultural Credit Policy 
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Council shall manage and control the implementation of the BALI Program 
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through its lending conduits which include grassroots-based organizations such 
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as rural banks, cooperative banks, cooperatives, and non-government 
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organizations or associations.  
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The lending conduits shall select, evaluate, approve and collect loans from 
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borrowers under the agreed guidelines issued by the Agricultural Credit Policy 
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Council.  
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SEC. 6.  Philippine Crop Insurance Corporation. – The Philippine Crop Insurance 
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Corporation shall subsidize the crop insurance coverage of the small farmers and 
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fisherfolks who avail of the BALI Program to protect them against loss and 
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mitigate their risks. The Philippine Crop Insurance Corporation must develop 
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sustainable agricultural insurance products for the marginal farmers and 
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fisherfolks. 
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SEC. 7. Fund. – The amount of Fifteen billion pesos (P15,000,000,000.00) is 
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hereby appropriated to implement the policies enunciated in this Act, as follows: 
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a. Ten billion pesos (P10,000,000,000.00) shall be allocated to fund the easy 
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access loan credit facility to be  managed  by the  Agricultural Credit Policy 
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Council through its lending conduits to finance crop production, purchase 
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of  farm inputs, finance farm improvement, among others, of the  small  
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farmers and  fisherfolks. 
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b. Five billion pesos (P5,000,000,000.00) shall be used to subsidize the 
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premium payments of individual farmers and farmer groups registered 
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under the Registry System for Basic Sectors in Agriculture who avail of the 
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bundled agricultural coverage.  
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SEC. 8. Implementing Rules and Regulations. – Within sixty (60) days from the 
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approval of this Act, the Secretary of Agriculture shall, in coordination with the 
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Bangko Sentral ng Pilipinas, Landbank of the Philippines, Agriculture and Credit 
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Policy Council and Philippine Crop Insurance Commission, promulgate the 
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necessary rules and regulations for the effective implementation of the provisions 
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of this Act. 
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SEC. 9. 
 Repealing Clause. – All laws, decrees, executive orders, rules and 
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regulations, and other issuances or parts thereof which are inconsistent with the 
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provisions of this Act are hereby repealed, amended or modified accordingly. 
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SEC. 10. Effectivity. – This Act shall take effect fifteen (15) days after its 
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publication in the Official Gazette or in a newspaper of general circulation.  
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Approved, 
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