Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH (19th) CONGRESS
|St Regular Session
HOU;EBi`LLNo.615g
Introduced by Hon. WILTER YAP PALMA
EXPLANATORY NOTE
Throughout  the  recent  years,  the  Philippines  has  suffered  a  number  of
extreme weather events such as heavy rains, typhoons and drought each stronger
than  the  last.  These  disasters  of  increasing  intensity  have  greatly  accosted  the
Filipino people especially our dear farmers as the damages brought about by these
calamities greatly disrupt their ljveljhood as well as the country's food production
and  food  security.  In fact,  according to the  Department of Agriculture, Typhoon
Odette, which was hailed as the strongest typhoon  in 2021, was able to brought
about  P17.75  Billion  Pesos worth  of damage to the agricultural sector while the
most recent Typhoon Paeng have brought about P5.6 Billion pesos in damages to
the agricultural sector.  It is a  harsh  reality that the poor families especially those
who are engaged  in agriculture are the one's that are most certainly affected  by
such calamities and are in need of the necessary government support that would
secure their livelihood.
As such,  it  is evident that  providing a  support system  in the form  of Crop
Insurance could  prove to be a vital  instrument in  mitigating agricultural  risks and
any further loss that may be experience by our dear farmers as a consequence of
natural  calamities.  This  shall  alleviate  the  financial  burden  of  farmers  due  to
uncompensated losses arising from the destruction of crops brought upon by said
calamities thus  keeping them  away from  perpetual  indebtedness,  enhance their


credit standing, and provide additional government support to increase agricultural
production. As a result, the farmers would then be able to immediately be able to
replant their specific crops which would in turn lead to them being able to provide
food not only for their respective family's tables but also the tables of the Filipino
people.
At  its  very  core,  this  bill  aims  to  immediately  address  the  continuous
predicament that is being faced  by our dear farmers and as such, the immediate
passage of this bill is earnestly sought.
Slbu8ay


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines
NINETEENTH (19th) CONGRESS
First Regular Session
HOU;`E~B|-LL-No.6159
Introduced by HON. WILTER YAP PALMA
AN ACT
ENSURING FOOD SECRulTY BY PROVIDING FOR THE MANDATORY CROP
INSURANCE COVERAGE TO FARMERS, AND PROVIDING FUNDS THEREFOR
Be  it enacted  by the  Senate  and  House  Of Representatives  Of the  Philippines  in
Congress assembled:
1                   SECTION 1. Sborf rit/e. -This Act shall be known as the ``Crop Insurance Act
2      of 2022.''
3
4                  SECTION 2. Dec/aroti.on oJ Po/i.cy. -It is hereby declared the policy of the
5      Stateto:
61.
7
8
9
10
112.
12
13
Ensure  food  security,  intensify  food  production,  promote  agricultural
credit and broaden the coverage of mandatory crop insurance, especially
amidst the recurrence of disasters and calamities,  natural or otherwise,
jnc]udjng floods,  typhoons,  heavy  rains,  drought,  earthquake,  volcanic
eruption, plant diseases and plant infestations.
AIleviate the financial  burden  of farmers due to  uncompensated  losses
arising from the destruction of crops brought upon by said calamities thus
keeping them away from  perpetual  indebtedness, enhance their credit


14                         standing,   and   provide   additional   government   support   to   increase
15                         agricultural production; and
16                   3.  To  assist  banks  and  financial  institutions  not  to  constrict  their  loaning
17                          capabilities, and kindle their willingness to extend loans to farmers.
18
19                 SECTloN 3. Insurance coverage and payment of premiums. ~ Partiic.ipatiion
2o      in the insuranceforcrops shall be mandatory upon all farmerswho own farmlands
21      of 5 hectares and below under this Act. This includes compensable losses such as
22      floods,   typhoons,   heavy  rains,   drought,   earthquake,   volcanic  eruption,   plant
23      diseases and plant infestations. These farmers shall be exempt from the payment
24      of  the  annual  premium  and  instead,  shall  be  charged  by  the  Philippine  Crop
25       Insurance   Corporation   (PCIC)   to   the   Department   of   Agriculture   (DA).   The
26       Department  of Agriculture,  Philippine  Crop  Insurance  Corporation  and  National
27      Food Authority are hereby mandated to conduct an actuarial study to determine
28      the amount of the annual premiums to be paid bythe Department ofAgriculture
29      aswellasthe benefitsto be released bythe PCIC.
30
31                  SECTION 4. Approp".oti.ons. -The secretary of Agriculture shall immediately
32      include in the Department's program the needed operational requirement of this
33      Act in the Annual General Appropriations Act. Thereafter, such amount as may be
34      necessary for its continued operation of this Act shall be included  in the Annual
35      General Appropriations Act.
36
37                  SECTION 5. Processi.ng oJ C/oi.ms. -All claims for payment pursuant to the
38      provisions of this Act shall be processed and settled within thirty (30) days at the
39      nearest philippine crop Insurance corporation Extension office.
40
41                 SECTION 6. /mp/emenri.ng Ru/es and Regu/afi.ons. -Within sixty (60) days
42      after the effectivity of this Act, the secretary of the Department ofAgriculture, the


43      Administrator of the National Food Authority, and the president of the philippine
44      Crop Insurance Corporation shall be constituted into a Committee mandated to
45      issue the necessary lmplementing Rules and Regulations of this Act.
46
47                  SECTION 7. Sapordei./i.ty a/ouse. -lf any provision of this Act, or any parts
48      thereof,  is  declared  unconstitutional,  the  same  shall  not  affect the  validity  and
49      effectivity of other portions.
50
51                   SECTION  8.  Rapeo//.ng  C/ouse.  -All  laws,  executive  orders,  presidential
52      decrees,  proclamations,  rules,  regulations,  issuances  and  enactments  of  parts
53      thereof inconsistent with this Act are hereby repealed or modified accordingly.
54
55                   SECTION 9. E#ecti.vi.ty. -This Act shall take effect fifteen (15) days following
56      its publication in at leasttwo (2) newspapers of general circulation or in the o#/.c/.cr/
5]      Gazette.
58                  Approved,
59
60
61