FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
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SENATE OF THE PHILIPPINES 
S. B. NO. 2131 
Introduced by Senator Ralph G. Recto 
Explanatory Note 
Over the past years, the Philippines has been hit by typhoons more intense than what have 
been normally experienced. The poor are more severely affected by disasters brought about by 
climate change since they are located in areas more vulnerable to floods and other forms of climate 
disasters, which in turn often disrupt agricultural production, hence affecting their livelihoods. These 
kinds of disasters take a great toll to Filipinos, especially those in the agriculture sector. And needless 
to say, farmers suffer the greater loss. 
About 1.38 million metric tons of rice was wiped out when the Philippines was ravaged by 
storms in the last quarter of 2009 and losses caused by El Nino may be as much as 816,372 metric 
tons of rice worth P12.24 billion this year. 
Crop insurance is a risk management tool designed to even out agricultural risks and address 
the consequences of natural disasters to make losses more bearable, especially to the marginalized 
farmers. In the Philippines, the Philippine Crop Insurance Corporation (PCIC) implements and 
manages the government program on agricultural insurance. 
When there was no crop insurance yet, the farmers would just patiently wait for the next 
planting season and would even resort to borrowing at usurious rates. 
The crop insurance program extended by the pcrc provided farmers the funds to sustain their 
operation. With the sum of money paid, the farmers are able to replant again as soon as weather and 
soil condition permits. Thus, crop insurance ensures the least disruption in crop production, ensuring 
both food security and the incomes of the farmers. 
However, despite the existence of the PC1C, only a small number of farmers avail of crop 
insurance because of the premium that they are required to pay. Although half of the premium is 
subsidized by the government, the remaining 50% is still a burden to some of our poor farmers. 
In support of the policy of the Comprehensive Agrarian Reform programs in our country 
which states that the welfare of the landless farmers and farm workers will receive the highest 
consideration 'to promote social justice and to move the nation toward sound rural development and 
industrializat.ion, this bill seeks to give the qualified beneficiaries of the Comprehensive Agrarian 
Reform Pr9gram a full crop insurance coverage. 
In light ofthe foregoing, immediate passage of the bill is earnestly sought. 


• 
FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE OF THE PHILIPPINES 
S. B. NO. 2131 
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 R.A. 9700 OTHERWISE 
KNOWN AS THE "COMPREHENSIVE AGRARIAN REFORM PROGRAM EXTENSION 
WITH REFORMS" 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 
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SECTION 1. Section 14 of RepUblic Act 9700, otherwise known as "Comprehensive 
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Agrarian Reform Program Extension with Reforms" is hereby amended to read as follows: 
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"SEC. 3 7. Support Services for the Agrarian Reform Beneficiaries. - The 
State shall adopt the integrated policy of support services delivery to 
agrarian reform beneficiaries. To this end, the DAR, the Department of 
Finance, and the Bangko Sentral ng Pilipinas (BSP) shall institute 
reforms to liberalize access to credit by agrarian reform beneficiaries. 
The P ARC shall ensure that support services for agrarian reform 
beneficiaries are provided, such as: 
HXXX 
"(G) 
FULL 
CROP 
INSURANCE 
COVERAGE 
TO 
FARMER 
BENEFICIARIES. COMPENSABLE LOSSES INCLUDE NATURAL 
CALAMITIES 
SUCH 
AS 
TYPHOON, 
FLOOD, 
DROUGHT, 
EARTHQUAKE AND VOLCANIC ERUPTION, PLANT DISEASES 
AND PEST INFESTATIONS. THE TERM OF INSURANCE IS FROM 
PLANTING UP TO EXPECTED DATE OF HARVEST. 
"xxx 
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SEC 2. Implementing Rules and Regulations. - The Presidential Agrarian Reform Council 
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and the Department of Agrarian Reform shall provide the necessary implementing rules and 
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regulations within thirty (30) days upon the approval of this Act. Such rules and regulations shall 
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take effect after they have been made and shall be published in at least two (2) newspapers of general 
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circulation. 
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SEC. 3. Effectivity. - This Act shall take effect fifteen (15) days following its publication in 
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at least two (2) newspapers of general circulation or the Official Gazette. 
Approved,