Dtfjf' ci i 4 .
TWENTIETH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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25 JUL 16 P4 :08
SENATE
S. B. No. 673
RHCEIVLDE/
INTRODUCED BY SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO
AN ACT
ESTABLISHING A MANDATORY CROP INSURANCE COVERAGE FOR SMALL 
FARMERS, PROVIDING FOR A NATIONAL GOVERNMENT SUBSIDY. AND FOR 
OTHER PURPOSES
EXPLANATORY NOTE
The Philippine Crop Insurance Corporation (PCIC) is a government-owned and 
-controlled corporation created under Presidential Decree No. 1467 in 1978. It is 
mandated to implement and manage the government's agricultural insurance
program, covering palay, corn, other crops, livestock, fisheries, and non-crop 
agricultural assets.
Over the years, the government has provided subsidies to support the crop 
insurance program and has been shouldering shares of insurance premiums of insured 
farmers. However, despite these developments, the uptake of crop insurance among 
small farmers remains low due to limited awareness, insufficient government subsidy, 
and difficulties in accessing insurance products, particularly in remote and under­
resourced rural areas. As a result, many smallholder farmers, who make up the 
backbone of Philippine agriculture, continue to bear the brunt of agricultural risks such 
as typhoons, droughts, pest infestations, and other climate-induced disasters. These
events often leave them with little to no recourse, perpetuating cycles of debt and 
poverty.


Further, the current crop insurance program is marked by limited coverage, 
with many smallholder farmers still not enrolled under the Corporation. This gap is 
partly due to the fact that insurance is only mandatory for those accessing agricultural 
credit through formal loan programs, while it remains optional for self-financed 
farmers. Moreover, limited awareness and understanding of the insurance products
offered by PCIC, including their benefits, processes, and terms, further hinder wider 
participation in the program.
In light of these unpleasant circumstances faced by our small farmers, this bill 
seeks to develop a crop insurance program that will provide a comprehensive 
protection for our small farmers and their crops from negative impacts of extreme 
weather/climate conditions, plant diseases and pest infestations, and other disasters. 
It also seeks to provide free crop insurance coverage for small farmers owning or 
cultivating five hectares of farmland or below, and a 50% insurance premium subsidy 
for farmers owning or cultivating more than five but not exceeding eight hectares of 
farmland. Further, it intends to strengthen PCICs capacity to deliver farmer-centered 
services, including improved claims processing, simplified enrollment, and closer 
collaboration with local government units, cooperatives, and accredited private 
insurance partners.
In view of the foregoing, the immediate enactment of this measure is earnestly
sought.
SENATOR CHRISTOPHER/LAWRENCE "BONG" T. GO


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. B. No.
r,e
! . 
< i • . ■ D\ i
25 JUL 16 P4 :09
A
RECE/lOi' /
INTRODUCED BY SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO
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 House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the "Crop Insurance
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Program for Small Farmers Act of 2025"
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SEC. 2. Declaration of Policy. - It shall be the policy of the State to promote
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genuine inclusive growth and alleviate poverty. It is likewise the policy of the State to
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promote a just and dynamic social order that shall ensure prosperity, promote full
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employment, a rising standard of living and an improved quality of life for all.
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In pursuit of this, the State shall develop a program that will ensure that
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farmers and their crops are protected from negative impacts of extreme
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weather/climate conditions, plant diseases and pest infestations, and other disasters,
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thereby protecting crop production, ensuring food security and farmers' livelihood.
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SEC- 3- Cr°P Insurance for Small Farmers Program. - (a) The Department of
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Agriculture (DA) in coordination with the Philippine Crop Insurance Corporation (PCIC)


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shall develop a special Crop Insurance Program for Small Farmers, guided by the
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following objectives:
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Promotion of food security through palay and other crop production;
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Provision of immediate support and protection to farmers incurring crop 
losses due to extreme conditions; and
3. Alleviate the financial burden of farmers due to uncompensated losses.
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(b) The Crop Insurance Program for Small Farmers shall operate under an
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insurance framework including, but not limited to, the following:
1. The Philippine Atmospheric, Geophysical and Astronomical Services 
Administration (PAGASA) shall be the primary reference weather station 
from which observed weather parameter shall be obtained. Other reference 
weather stations may include other weather stations accredited by PAGASA;
2. There shall be an identified trigger or threshold reference point to serve as 
a basis of measurement wherein in case of an occurrence of a breach the 
PCIC is obligated to indemnify and pay the required payout to the insured;
3. Phases of crop growth shall be covered by the insurance where a separate 
trigger and payout may be determined;
4. The payout or the insurance payment shall be based on a pre-determined 
schedule that takes into account the actual area planted; and
5. Any breach of the threshold reference point shall be the basis of any payout. 
Declaration of a State of Calamity in a local government unit shall not be 
required to trigger the obligation of the PCIC to the insured farmers.
SEC. 4. Terms and Conditions. - Within ninety (90) days after the effectivity of 
this Act, the Department of Agriculture (DA) in coordination with the Philippine Crop 
Insurance Corporation (PCIC), and in consultation with the Insurance Commission (IC) 
shall formulate the terms and conditions which shall govern a comprehensive 
insurance scheme for the benefit of the farmers. The terms and conditions shall be


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published in the Official Gazette or in a newspaper of general circulation in the
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Philippines.
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SEC. 5. Insured Farmers under the Crop Insurance Program for Small Farmers 
and Premium Subsidy. -
(a) All farmers of palay and other crops owning or cultivating eight (8) hectares 
of farmland and below shall automatically be covered by the Crop Insurance Program 
for small farmers. Subsidy for insurance premiums shall be determined by the 
following qualifications:
1. For farmers owning or cultivating five (5) hectares of farmland and below, 
the National Government shall fully subsidize their insurance premiums;
2. For farmers owning or cultivating more than five (5) hectares but not 
exceeding eight (8) hectares of farmland, the National Government shall 
only cover and subsidize fifty percent (50%) of their insurance premiums.
(b) The DA together with the Department of Agrarian Reform (DAR) and PCIC, 
in coordination with local government units, shall develop, maintain and annually 
update a database of farmers covered under this Program, and determine their 
qualifications as to the type of subsidy covered;
(c) The DA and PCIC shall develop a system for the processing and payment 
of the fifty percent (50%) insurance premiums not covered by National Government 
subsidy. Such premium may be paid in money or in a quantity of paddy the value of 
which shall be equal to the amount of the premium due to the farmer, such value
being computed according to the current market price of the crop as determined by 
DA.
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(d) All farmers covered under this Act shall be deemed to have entered into a
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contract of insurance with the National Government through the PCIC;


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(e) Small farmers who are currently covered by an existing crop insurance shall 
have an option to choose whether to remain under their existing crop insurance or be 
covered by the Crop Insurance Program for small farmers.
SEC. 6. Rate of Premium. - The rate of premium shall be determined by the 
Board of Directors of the Philippine Crop Insurance Corporation (PCIC) subject to the 
approval by the President of the Philippines.
SEC. 7. Source of Funding. - In accordance with Section 5(a) of this Act, 
insurance premiums of small farmers shall be subsidized by the National Government. 
The funding for this Program shall be deemed appropriated from the funds of the 
Department of Agriculture.
Initially, the premium subsidy for the first year of implementation shall be 
drawn on a month-to-month basis, depending on the actual amount of insurance 
underwritten by the PCIC. Subsequently, projections of the premium subsidy shall be 
submitted by the PCIC to the President, and upon the approval of the President shall 
be included in the National Expenditure Program.
SEC. 8. Ciaim to Indemnity. - In cases where the identified trigger or threshold 
reference point has been breached, the insured person shall submit a written claim to 
indemnity in respect of losses incurred to the municipal agriculturist. The municipal 
agriculturist shall then forward the written claim to indemnity to the PCIC.
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The payment of the indemnity shall be in accordance with the terms and
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conditions set forth by the DA and PCIC under Section 4 of this Act.
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^mPlernenting Ruies and Reguiations. -The Department of Agriculture,
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and the Philippine Crop Insurance Corporation, in consultation with relevant
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government agencies and instrumentalities, shall provide the necessary implementing
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rules and regulations within sixty (60) days upon the approval of this Act. Such rules


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and regulations shall take effect after they have been made and shall be published in
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at least two (2) newspapers of general circulation.
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SEC. 10. Separability Clause. -If any provision of his Act is declared invalid or
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unconstitutional, the remaining parts or provisions not affected shall remain valid.
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SEC. 11. 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.
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SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in two (2) newspapers of general circulation.
Approved,