NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES,
317¢
is

H.B. No.

Introduced by Representative 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 37 OF REPUBLIC ACT
NO. 6657, AS AMENDED BY REPUBLIC ACT NO 9700

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 had been normally
experienced. Typhoon Odette brought about P17.75 billion worth of damage to
agriculture when it struck the country in December 2021. This just a few months after
Typhoon Maring in May 2021, which caused P4.18 billion worth of damages to the
agricultural areas in Regions 1, Il and CAR, among others. 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 are 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 farmers 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 farmers will be able to
immediately replant as soon as the weather and soil condition permits. Two, it provides
‘a mechanism to mitigate the effects of calamities on crop production, sustaining not only
the farmer'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
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remains low. In 2020, PCIC only insured some 1.91 million hectares of rice and corn land
and 3.09 million farmers, and paid claims worth only P3.50 billion to 611,998 farmers.
“These figures reveal that in 2020, PCIC was only able to insure about 26.27% of rice and
corn harvested areas and about 33.14% of agricultural workers.

‘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 stil a burden
to many of our poor farmers and land tenants who could barely make both ends meet,

let alone take insurance policies for their crops and livestock.

This bill seeks to address this predicament by providing the qualified beneficiaries
of the Comprehensive Agrarian Reform 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 farmers and farm workers will receive the highest
consideration to promote social justice and to move the nation toward sound rural
evelopment and industrialization. Ultimately, this bill seeks to contribute in helping every
Filipino farmer rise out of poverty.

In light of the foregoing, immediate passage of the bill {s-earnestly sought.



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NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES,

H. B. No. 3178

Introduced by Representative 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 37 OF REPUBLIC ACT
NO. 6657, AS AMENDED BY REPUBLIC ACT NO 9700

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

Section 1. Section 14 of Republic Act No. 9700, otherwise known as the
“Comprehensive Agrarian Reform Program Extension with Reforms” is hereby amended
to read as follows:

“Sec. 14. Section 37 of Republic Act No. 6657, as amended, is hereby further

amended to read as follows:
"Sec. 37. 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 PARC shall ensure that support services
for agrarian reform beneficiaries are provided, such as:
%(@) xxx;
“KKK;
“() xxx; AND
“(G) FULL CROP INSURANCE COVERAGE TO FARMER
BENEFICIARIES. COMPENSABLE LOSSES SHALL INCLUDE
NATURAL CALAMITIES SUCH AS TYPHOON, FLOOD,
DROUGHT, EARTHQUAKE AND VOLCANIC ERUPTION;
PLANT DISEASES AND PEST INFESTATIONS. THE TERM OF


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INSURANCE SHALL BE RECKONED FROM THE DATE OF
PLANTING UP TO EXPECTED DATE OF HARVEST.
"XX

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 Philippine Crop
Insurance Corporation (PCIC). Thereafter, projections of the premium subsidy
requirement shall be submitted by the PCIC to the President, and shall be included in the
annual! General Appropriations Act.

Sec. 3. Jmplementing Rules and Regulations. - Within thirty (30) days from the
effectivity of this Act, the Presidential Agrarian Reform Council, the Department of
Agriculture, the PCIC, the Department of Agrarian Reform, and the Department of Budget
and Management shall issue the necessary rules and regulations for the effective
implementation of this Act.

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 in the Official Gazette.

‘Approved,