S~l'I11b 
SIXTEENTH CONGRESS OF THE REPUBLIC ) 
<liIfI,;r of t~c .~,,,,..t"'~ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL 10 A9 :54 
SENATE 
S. No. 714 
Introduced by Senator Ralph G. Recto 
Explanatory Note 
This Bill seeks to provide a special insurance program to cover losses incurred 
exclusively by rice and com fanners. 
Bulk of the Filipino diet and food expenditures consist of the staple grains, rice and com. 
Generally, the Filipino family spends 20-30% of their food expenditures budget on rice.! On the 
other hand, around 14 million Filipinos prefer to eat white com grits as their main staple.2 Be 
they rice or com eaters, Filipinos say, "Mas masarap ang ulam kapag masarap ang sinaing. " 
The livestock and poultry sectors and food processors also depend on sufficient and 
stable supply of reasonably-priced rice and com for food and non-food uses such as in feeds 
production. Rice and com utilization for feeds is constantly high in the latest Department of 
Agriculture (DA) data, as follows: 
(In thousand metric tons)3 
2008 
2009 
2010 
2011 
Rice 
715 
691 
670 
709 
Com 
4,503 
4,572 
4,145 
4,531 
The two main staples are very important economic commodities as the production 
involves millions of farm households tilling land as small holders and millions more as laborers 
and merchants. Two million households grow rice and 600,000 households grow com. Likewise, 
production need land, water, seeds, inputs like fertilizers, pesticides, herbicides and the like, farm 
machineries and post-harvest facilities like grain silos, that are mostly expensive. 
Equally important in rice and com production are: climate, of which the Philippines has 
four types; and, extreme weather events such as tropical cyclones with their increasing 
occurrence and intensity. Moreover, according to the Philippine Atmospheric, Geophysical and 
Astronomical Services Administration, various regions experience different climate types. In 
terms of rainfall patterns, the country has distinct Eastern and Western clusters. Western coastal 
areas have clear dry season from November to April while Eastern coastal areas lack a dry 
season during the same period. 
Recent rain and tropical cyclone episodes upturned long-established patterns with 
increasing frequency of tropical cyclones in Mindanao, that until recently was touted as free of 
destruction from typhoon. On the flip side, com production areas in Northern Luzon now 
undergo prolonged dry spell at a time when com farms need rains in May and June.4 The 
peculiar climate of the Philippines increases the vulnerabilities in agriculture that consequently 
expand the mandates of government agencies. 
1 Agri-Pinoy Rice Program. Department of Agriculture (DA), 2013. 
Z Agri-Pinoy Corn Program. DA, 2013. 
3 Rice and Corn: Supply Utilization Accounts by Commodity, Year and Item. DA, 2013. 
4 http://newsinfo.inquirer.net/424681/S000-hectares-of -co rn-farms-d ry-u p 


.-
To manage the negative impacts of extreme weather events and climate change, the DA 
mandated its Bureaus and Attached Offices and Corporations to mainstream climate change in 
their strategies5 to sustain growth, including the banner crops rice and com. Rice and com 
production are the main contributors of the P192.4 Billion crops subsector out of P352 Billion 
agriculture production just for the First Quarter of 2013.6 This echo subsector growth in the past. 
Some of the measures in mainstreaming climate change are the use of geo-hazard maps, 
engineering solutions and use of appropriate rice and com varieties, among others. 
Similarly, diseases and pest infestations lead to crop losses. The dreaded black bugs 
damage thousands of hectares of rice farms and are precursors of El Nino episodes. Rats, army 
worms and locusts are some of the pests considered as scourges by farmers nationwide. 7 In order 
to recover from these damages and to plant anew, farmers need assistance through access to 
agriculture extension services and immediate capital infusion to acquire needed inputs. 
Growth and equity in the subsector are paramount in achieving food security and 
elimination of extreme poverty especially in rural areas. Despite great demand for rice and com, 
the farmers and farm workers remain one of the poorest sectors and suffer hunger, come good or 
bad weather. 
The Food and Nutrition Research Institute had reported the phenomenon of rural hunger, 
stunting and wasting among various age groups including infants and pregnant and lactating 
mothers.8 Rural hunger is encapsulated in the saying, "Magdildil na lang ng asin ". Oftentimes, 
only alternative crops like cassava and camote keep their hunger at bay, not even rice or com. 
The cycle of crop loss and hunger is reinforced as farmers who suffered such crop losses 
exhibited the following coping mechanisms: passive acceptance and belief in the futility of 
attempts to prevent crop loss; replanting' the damaged crops; and, planting alternative crops. 
Mostly, they wait for the next planting season and sustain family expenditures by working in 
other jobs like driving.9 Consequently, farmers with depressed incomes fail to provide for their 
minimum basic needs much less for inputs in the next cropping cycle. 
The special insurance program will enable farmers cultivating land with a maximum area 
of five (5) hectares to replant as soon as weather and soil condition permits, thereby ensuring the 
least disruption in crop production, ensuring food security and farm incomes. 
The premium shall be fully-paid for by the State through the Special Rice and Com 
Insurance Program to be undertaken by the Department of Agriculture and the Department of 
Agrarian Reform through the Philippine Crop Insurance Corporation. 
In light ofthe foregoing, immediate passage of the bill is earnestly sought. 
5 Memorandum. DA, January 25, 2013. 
6 Performance of Philippine Agriculture, Bureau of Agriculture StatIstics - OA, 2013. 
7 http://www.mindanews.com/top-stories/2011/03/19/rat-damage-to-pa[ay-corn-farms-in-southwestern-mindanao-pegged-at-p612-m/ 
8 Philippine Nutrition Fact and Figures 2011. Food and Nutrition Research Institute. 
~JVlW~n~§~lability, SCF, and Corn Farming in Isabela, Philippines: a Farm and Household level Analysis, Reyes, Domingo, Mina, Gonzales, 


SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Srl'mtJ! 
(Off,:, (If HI' :i>m'tnr~ 
'13 
JUL 10 A9 :54 
_______________________ S_._N_o_. __ 
'_l_· 4 _____________ R_F_;(_'f_:~_' __ 
;p_n __ y,~ 
Introduced by Senator Ralph G. Recto 
AN ACT 
AUTHORIZING THE GRANT OF A FULL CROP INSURANCE COVERAGE TO 
QUALIFIED FARMERS, PROVIDING FOR THE REQUIRED GOVERNMENT 
PREMIUM SUBSIDY, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Title. - This Act shall be known as "Special Rice and Com Insurance 
2 
Program of20\3". 
3 
Sec 2. Declaration of Policy. - The State shall ensure food security in basic staple grains 
4 
and protect the livelihood of qualified farmers against losses incurred from natural disasters, 
5 
plant diseases and pest infestation, exclusively on rice and com crops. 
6 
Towards this end, there shall be a special insurance program for rice and com farmers. 
7 
Sec. 3. Special Rice and Corn Insurance Program. - The Department of Agriculture and 
8 
the Department of Agrarian Reform (DAR) shall undertake a Special Rice and Com Insurance 
9 
Program, guided by the following objectives: 
10 
1. Promotion of food security through rice and com production. 
11 
2. Provision of immediate support to rice and com farmers incurring crop losses due to 
12 
compensable causes. 
13 
3. Ensuring stable supply and prices of rice and com for food and non-food utilization. 
14 
Sec. 4. Qualified farmers. - All rice and com farmers cultivating a maximum of five (5) 
15 
hectares are qualified to participate in the Special Rice and Com Insurance Program. 
16 
Sec. 5. Rate of Premium. - The rate of premium shall be determined by the Board bf 
17 
Directors of the Philippine Crop Insurance Corporation (PCIC). 
18 
Sec. 6. Premium Subsidy. - The premium shall be fully subsidized by the National 
19 
Government and shall be deemed appropriated from the funds of the Department of Agriculture. 
20 
Initially, the premium subsidy for the first year of implementation shall be drawn on a 
21 
month-to-month basis, depending on the actual amount of insurance underwritten by the PCIC. 
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1 
Subsequently, projections of the premium subsidy shall be submitted by the pcrc to the 
2 
President, and upon the approval of the President shall be included in the National Expenditures 
3 
Program. 
4 
Sec. 7. Implementing Rules and Regulations. -
The Department of Agriculture, 
5 
Department of Agrarian Reform and the Philippine Crop Insurance Corporation shall provide the 
6 
necessary implementing rules and regulations within thirty (30) days upon the approval of this 
7 
Act. Such rules and regulations shall take effect after they have been made and shall be 
8 
published in at least two (2) newspapers of general circulation. 
9 
Sec. 8. Separability Clause. - If any provision of this Act is declared invalid or 
10 
unconstitutional, the other provisions not affected thereby shall remain in full force and effect. 
11 
Sec. 9. Repealing Clause. - All laws, acts, decrees, executive orders, issuances, and rules 
12 
and regulations or parts thereof which are contrary to and inconsistent with this Act are hereby 
13 
repealed, amended or modified accordingly. 
14 
Sec. 10. EffectiVity. - This Act shall take effect fifteen (\5) days following its publication 
15 
in at least two (2) newspapers of general circulation or the Official Gazette. 
Approved, 
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