TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
JUL -9 P5 :24
S. No.
SENATE
339
hi:.
Introduced by Senator JV Ejercito
AN ACT
ESTABLISHING A MANDATORY CROP INSURANCE COVERAGE FOR SMALL 
FARMERS, PROVIDING FOR A NATIONAL GOVERNMENT SUBSIDY, AND FOR 
OTHER PURPOSES
EXPLANATORY NOTE
Agriculture is a critical sector that plays a vital role in the Philippines. It remains 
the backbone or rural economies in the country, contributing significantly to the 
nation's workforce and playing a crucial role in ensuring food security. As the 
Philippines is considered a typhoon-prone country, our agricultural production I always 
affected by disasters and calamities. Thus, it is important for the government to 
provide mechanisms to assist our farmers in order to manage losses in case of 
devastation brought about by calamities.
Crop insurance is a form of protection that safeguards farmers against such 
losses. This ensures that farmers and their crops are protected from negative impacts 
of natural disasters, calamities, plant diseases and pest infestations, and other 
disasters, and thereby protecting crop production, ensuring food security and farmer's 
livelihood.
The Philippine Crop Insurance Corporation (PCIC) is mandated to provide 
insurance protection to farmers against losses arising from natural calamities, plan 
diseases, and pest infestations of their palay and corn crops as well as other crops. It


reported a total insurance coverage of Php 105 billion across various programs in 
2024. A significant part consists of insurance coverage for rice, and this coverage was 
extended to more than 3 miiiion individuais, including farmers and fisherfolk.1
Aithough the government have been providing subsidies to support the crop 
insurance program, this has not resulted to better outcome in terms of alieviating the 
financiai burden of farmers. According to the Department of Agriculture, only 47% of 
farmers nationwide are covered with insurance.
This proposed measure seeks to expand the coverage of the current subsidized 
crop insurance program of the government. Farmers owning 5 to 8 hectares wiil be 
automatically covered by the Crop Insurance Program for small farmers, as well as a 
subsidy of 50% of their insurance premiums. Moreover, this bill will provide a long­
term protection for the country's most essential yet vulnerable sector.
In view of the foregoing, the approval of this biil is earnestiy sought.
JV EJERCITO
1 Philipppine Crop Insurance Corporation 2024 Report. https://acpc.gov.ph/wp-content/uploads/2024-Q3- 
PCtCs-Performance-Report-
I .pdf#:~:text=The%20Philippine%20Crop%201nsurance%20Corporation%2Q(PClC)%20reported.a%2Qtotal%2
0insured%20amount%20of%20%E2%82%B128.20%20billion.


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 339
25 JUL-9 P5:24
Introduced by Senator JV Ejercito
AN ACT
ESTABLISHING A MANDATORY CROP INSURANCE COVERAGE FOR SMALL 
FARMERS, PROVIDING FOR A NATIONAL GOVERNMENT SUBSIDY, AND FOR 
OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
1 
Section 1. Short Title. -This Act shall be known as the "Crop Insurance Program
2 
for Small Farmers Act of 2025."
3 
Sec. 2. Declaration of Policy. - It Is the policy of the State to promote genuine
4 
inclusive growth and alleviate poverty. It is likewise the policy ofthe State to promote
5 
a just and dynamic social order that shall ensure prosperity, promote full employment,
6 
a rising standard of living and an improved quality of life for all.
7 
Sec. 3. Crop Insurance for Small Farmers Program. -
8 
(a) The Department of Agriculture (DA) in coordination with the Philippine Crop
9 
Insurance Corporation (PCIC) shall develop a special Crop Insurance Program
10 
for Small Farmers, guided by the following objectives:
11 
a. Promotion of food security through palay and other crop production;
12 
b. Provision of immediate support and protection to farmers incurring
13 
crop losses due to extreme conditions; and
14 
c. Alleviate the financial burden of farmers due to uncompensated losses.
15 
(b)The Crop Insurance Program for Small Farmers shall operate under an
16 
insurance framework including, but not limited to, the following:


1 
a. The Philippine Atmospheric, Geophysical and Astronomical Services
2 
Administration (PAGASA) shall be the primary reference weather
3 
station from which observed weather parameter shall be obtained.
4 
Other reference weather stations may include other weather stations
5 
accredited by PAGASA;
6 
b. There shall be an Identified trigger or threshold reference point to
7 
serve as a basis of measurement wherein in case of an occurrence of
8 
a breach the PCIC is obligated to indemnify and pay the required
9 
payout to the insured;
10 
c. Phases of crop growth shall be covered by the insurance where a
11 
separate trigger and payout may be determined;
12 
d. The payout or the insurance payment shall be based on a prel6
13 
determined schedule that takes into account the actual area planted;
14 
and
15 
e. Any breach of the threshold reference point shall be the basis of any
16 
payout. Declaration of a State of Calamity in a local government unit
17 
shall not be required to trigger he obligation of the PCIC to the insured
18 
farmers.
19 
Sec. 4. Terms and Conditions. - Within ninety (90) days after the effectivity of
20 
this Act, the Department of Agriculture (DA) in coordination with the Philippine Crop
21 
Insurance Corporation (PCIC), and in consultation with the Insurance Commission (IC)
22 
shall formulate the terms and conditions which shall govern a comprehensive
23 
insurance scheme for the benefit of the farmers. The terms and conditions shall be
24 
published in the Official Gazette or in a newspaper of general circulation in the
25 
Philippines.
26 
Sec. 5. Insured Farmers under the Crop Insurance Program for Smaii Farmers
27 
and Premium Subsidy.-
28 
(a) All farmers of palay and other crops owning or cultivating eight (8) hectares of
29 
farmland and below shall automatically be covered by the Crop Insurance
30 
Program for small farmers. Subsidy for insurance premiums shall be 2
31 
determined by the following qualifications:


1 
a. For farmers owning or cultivating five (5) hectares of farmland and
2 
below, the National Government shall fully subsidize their insurance
3 
premiums;
4 
b. For farmers owning or cultivating more than five (5) hectares but not
5 
exceeding eight (8) hectares of farmland, the National Government shall
6 
only cover and subsidize fifty percent(50%) of their insurance premiums.
7 
(b)The DA together with the Department of Agrarian Reform (DAR) and PCIC, in
8 
coordination with locai government units, shall develop, maintain and annualiy
9 
update a database of farmers covered under this Program, and determine their
10 
qualifications as to the type of subsidy covered;
11 
(c) The DA and PCIC shall develop a system for the processing and payment of the
12 
fifty percent (50%) insurance premiums not covered by the Nationai
13 
Government subsidy. Such premium may be paid in money or in a quantity of
14 
paddy the value of which shall be equal to the amount of the premium due to
15 
the farmer, such value being computed according to the current market price
16 
of the crop as determined by 19 DA.
17 
(d)AII farmers covered under this Act shall be deemed to have entered into a
18 
contract of insurance with the National Government through the PCIC;
19 
(e) Small farmers who are currently covered by an existing crop insurance shall
20 
have an option to choose whether to remain under their existing crop insurance
21 
or be covered by the Crop Insurance Program for small farmers.
22 
Sec. 6. Rate of Premium. - The rate of premium shali be determined by the
23 
Board of the Philippine Crop Insurance Corporation (PCIC) subject to the approval by
24 
the President of the Philippines.
25 
Sec. 7. Source of Funding. - In Accordance with Section 5(a) of this Act,
26 
insurance premiums of small farmers shall be subsidized by the National Government.
27 
The funding for this Program shall be deemed appropriated from the funds of the
28 
Department of Agriculture.
29 
Initially, the premium subsidy for the first year of implementation shail be drawn
30 
on a month-to-month basis, depending on the actual amount of insurance
31 
underwritten by the PCIC. Subsequently, projections of the premium subsidy shall be


1 
submitted by the PCIC to the President, and upon approval of the President shall be
2 
included in the National Expenditure Program.
3 
Sec. 8. Claim to Indemnity. - In cases where the identified trigger or threshold
4 
reference point has been breached, the insured person shall submit a written claim to
5 
indemnity in respect of losses incurred to the municipal agriculturist. The municipal
6 
agriculturist shall then forward the written claim to indemnity to the PCIC. The
7 
payment of the Indemnity shall be in accordance with the terms and conditions set
8 
forth by the DA and PCIC under Section 4 of this Act.
9 
Sec. 9. Implementing Rules and Regulations. - The The Department of
10 
Agriculture, and the Philippine Crop Insurance Corporation, in consultation with
11 
relevant government agencies and instrumentalities, shall provide the necessary
12 
implementing rules and regulations within sixty (60) days upon the approval of this
13 
Act. Such rules and regulations shall take effect after they have been made and shall
14 
be published in at least two (2) newspapers of general circulation
15 
Sec. 13. Separability Clause. - If any part or provision of this Act shall be declared
16 
unconstitutional or invalid, the other provisions hereof which are not affected thereby
17 
shall remain in full force and effect.
18 
Sec. 14. Repealing Clause. - All laws, decrees, executive orders, memorandum
19 
orders, memorandum circulars, administrative orders, ordinances or parts thereof
20 
which are inconsistent with the provisions of this Act are hereby deemed repealed or
21 
modified accordingly.
22 
Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days after its
23 
publication in the Official Gazette or in a newspaper of national circulation.
Approved,