E lG in EEiM 11 CONGRESS OF THE 
)
REPUBLIC OI THE PIIILIPPINFS 
)
First Regular Session 
)
Senate
cf llte ^>c;vrtnrf>
SENATE
S. No.
43
•19 
JUL -1 
All 35
RECL...... .
Introduced by Senator Ralph G. Recto
AN ACT
AUTHORIZING THE GRANT OF A FULL CROP INSURANCE COVERAGE TO 
QUALIFIED BENEFICIARIES OF THE COMPREHENSIVE AGRARIAN REFORM 
PROGRAM AMENDING FOR THE PURPOSE SECTION 14 OF REPUBLIC ACT 
NO. 9700, OTHERW ISE KNOW N AS 1 HE “COMPREHENSIVE AGRARIAN REFORM 
PROGRAM EXTENSION W ITH REFORMS”
Explanatory Note
Over the past years, the Philippines suffered extreme weather events such as heavy rains, 
typhoons and droughts that were more intense than what liad been normally experienced. The 
Department of Agriculture (DA) estimates that the agricultural damage wrought by the El Nino 
Southern Oscillation Phenomenon since March 2019 already reached P7.963 billion on May 2019, 
affecting some 247,610 tanners and 277,891 hectares of agricultural land1. Typhoon Ompong 
brought about P 26.77 billion worth of damage to agriculture when it struck the country in 
September 20182. This is followed by Typhoon Rosita in November 2018, which caused P2.905 
billion worth of damages to the agricultural areas in Regions 1, II, III, and CAR3. These disasters 
take a great toll on Filipinos for they can disrupt livelihood and affect food production. The poor, 
particularly those engaged in agriculture, suffers the most because their household and livelihood 
arc usually located in areas most vulnerable to natural hazards and calamities.
Crop insurance is one of the government’s instruments in mitigating agricultural risks and 
addressing the consequence of calamities on the agricultural sector. As a risk management tool, 
crop insurance provides two advantages. One, it makes losses more bearable by providing 
immediate financial support so affected fanners would have better options than waiting for the 
next planting season or resorting to borrowing money at usurious rates. With the proceeds from 
crop insurance claims, the fanners will be able to immediately replant as soon as the weather and 
soil condition pennits. Two, it provides a mechanism to mitigate the effects of calamities on crop 
production, sustaining not only the fanner’s family income, but the country’s food security as well.
In the Philippines, the Philippine Crop Insurance Corporation (PCIC) implements and 
manages the government program on agricultural insurance. However, the participation of 
agricultural workers in the government agricultural insurance program remained low. In 2017, 
PCIC only insured some 1,326,618 hectares ot land and 1,697,577 fanners and paid claims wortli
1 National Disaster Risk Reduction and Management Council. (2019, May 3). Situational Report No. 20 re: 
Preparedness Measures and Effects of El Nino.
1 National Disaster Risk Reduction and Management Council. (2018, October 6). Situational Report No. 57 re: 
Preparedness Measures and Effects of Typhoon “OMPONG” (I.N. MANGKHUT).
3 National Disaster Risk Reduction and Management Council. (2018, November 15). Situational Report No. 21 re: 
Preparedness Measures and Effects of Typhoon “ROSITA” (I.N. YUTU).
Page 1 of 2


PI.937 billion to 241,096 fanners4. These figures revealed that in 2017, PCIC was only able to 
insure about 18.24% of agricultural land area and about 16.54% of agricultural workers5.
One of the reasons for the low farmer participation in crop insurance is the premium 
required to participate in the program. Although government extends assistance through insurance 
premium subsidies, the balance of premium payments is still a burden to many of our poor fanners 
and land tenants who could barely make both ends meet, let alone take insurance policies for their 
crops.
This bill seeks to address this predicament by providing the qualified beneficiaries of the 
Comprehensive Agrarian Refonn Program a full crop insurance coverage. It sustains the policy 
enshrined in the Comprehensive Agrarian Reform Program which states that the welfare of the 
landless fanners and farm workers will receive the highest consideration to promote social justice 
and to move the nation toward sound rural development and industrialization. Ultimately, this bill 
seeks to contribute in helping every Filipino fanner rise out of poverty.
In light of the foregoing, immediate passage of the bill is earnestly sought.
/nulg
4 Philippine Crop Insurance Corporation (2017). Annual Report 2017: Excellence in Governance for the Filipino 
Farmer. Quezon City: Philippine Crop Insurance Corporation
5 Figures for agricultural land area (7,271,446 hectares) taken from 2012 Census of Agriculture. Figures for 
agricultural workers (10,261,000) taken from 2017 Labor Force Estimates.
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EIGIITEEM 11 CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINFS 
)
First Regular Session 
)
SENATE
s. No. 4 3
*19 
JUL -1 
All 35
Introduced by Senator Ralph G. Recto 
RECL;. ^
AN ACT
AUTHORIZING THE GRANT OF A FULL CROP INSURANCE CONE RAGE TO 
QUALIFIED BENEFICIARIES OF THE COMPREHENSIM: AGRARIAN REFORM 
PROGRAM AMENDING FOR THE PURPOSE SECTION 14 OF REPUBLIC ACT 
NO. 9700, OTHERW ISE KNOWN AS THE “COMPREHENSIVE AGRARIAN REFORM 
PROGRAM EXTENSION W ITH REFORMS"
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
1 
S ec t io n 1. Section 14 of Republic Act No. 9700, otherwise known as the “Comprehensive
2 
Agrarian Reform Program Extension with Refonns” is hereby amended to read as follows:
3 
“Sec. 14. Section 37 of Republic Act No. 6657, as amended, is hereby further amended
4 
to read as follows:
5 
"See. 37. Support Services for the Agrarian Reform Beneficiaries. - The
6 
State shall adopt the integrated policy of support services delivery to
7 
agrarian refonn beneficiaries. To this end, the DAR, the Department of
8 
Finance, and the Bangko Sentral ng Pilipinas (BSP) shall institute refonns
9 
to liberalize access to credit by agrarian refonn beneficiaries. The PARC
10 
shall ensure that support services for agrarian refonn beneficiaries are
11 
provided, such as:
12 
“(a) X X x;
13 
“X X x;
14 
“(f) X X x; AND
15 
“ (G) F ull c r o p in sura nce c o v e r a g e to fa r m er b e n e f ic ia r ie s.
16 
C o m pen sa b le losses sh a ll in clu d e natuicvl c a l a m it ie s such as
17 
TYPHOON, FLOOD, DROUGHT, EARTHQUAKE .\ND VOLCANIC ERUPTION;
18 
PLANT DISEASES AND PEST INFESTATIONS. THE TERM OF INSUILANCE
19 
SHALL BE RECKONED FROM HIE DAI E OF PLANTING UP TO E.XPEC I ED
20 
DATE OF HAR\ EST.
21 
“X X X.”
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Sec. 2. Appropriations. -  The Secretary of Agriculture shall immediately include in the 
Department’s program the needed operational requirement of this Act, the initial funding of which 
shall be charged against the corporate fund of the PCIC. Thereafter, projections of the premium 
subsidy requirement shall be submitted by the Philippine Crop Insurance Corporation (PCIC) to 
the President, and shall be included in the annual General Appropriations Act.
Sec. 3. Implementing Rules and Regulations. -  The Presidential Agrarian Reform Council, 
the Department of Agriculture (DA), the PCIC, the Department of Agrarian Reform (DAR), and 
the Department of Budget and Management (DBM) shall provide the necessary implementing 
rules and regulations within thirty (30) days upon the approval of this Act. Such rules and 
regulations shall take effect after its publication in at least two (2) newspapers of general 
circulation.
Sec. 4. Separability Clause. -  If any provision, section or part of this Act shall be declared 
unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other 
provisions, sections or parts hereof
Sec. 5. Repealing Clause. — All laws, acts, decrees, executive orders, issuances, and rules 
and regulations or parts thereof which are contrary to and inconsistent with this Act are hereby 
repealed, amended or modified accordingly.
Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days following its publication 
in at least two (2) newspapers of general circulation or the Official Gazette.
Approved,
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