Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2780 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
Agriculture in the Philippines remains highly vulnerable to climate shocks, pest 
infestations, and other risks, often resulting in serious financial losses for farmers and 
fisherfolk. Crop insurance plays a critical role in stabilizing income, enabling access to credit, 
and encouraging continued production. 
Under Presidential Decree No. 1467, the Philippine Crop Insurance Corporation (PCIC) 
was established to provide coverage primarily for palay and corn farmers. However, this 
mandate has become increasingly outdated, as the agricultural sector has diversified and 
modernized. 
This legislation proposes to expand PCIC’s insurance services to include livestock, 
aquaculture and fishery, agroforestry, forest plantations, and non-crop agricultural assets such 
as machinery, equipment, transport facilities, and rural infrastructure. It also authorizes the 
PCIC to enter into reinsurance agreements with private insurers, cooperatives, and farmers’ 
organizations, thereby broadening private sector participation and enhancing financial 
sustainability.1 
A similar measure was filed in the 19th Congress and was approved on third reading by 
the House of Representatives. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
1 Reganit, J. C. (2023, March 21). Bill expanding services of PCIC hurdles House. Philippine News Agency. 
https://www.pna.gov.ph/articles/1197856
July 31, 2025
10:47 am


HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2780 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT EXPANDING THE SERVICES OF THE PHILIPPINE CROP INSURANCE 
CORPORATION AND ENCOURAGING PRIVATE SECTOR PARTICIPATION IN 
AGRICULTURAL INSURANCE, FURTHER AMENDING SECTIONS 1 AND 3.11 OF 
PRESIDENTIAL DECREE NO. 1467, CREATING THE PHILIPPINE CROP INSURANCE 
CORPORATION, AS AMENDED 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1.  It shall be the policy of the State to develop and support an adequate agricultural 
insurance program as a mechanism for managing the risks inherent in agriculture and 
stabilizing the financial fluctuations suffered by agricultural producers in case of loss on all 
agricultural commodities, whether crops or livestock, and including the agricultural facilities 
and related infrastructures, with the end in view of encouraging lending institutions to extend 
credit to the agricultural sector.  
It shall also be the policy of the State to promote the modernization of the agricultural 
sector by mitigating the risks inherent to the industry and which increase the barriers to 
increased market participation in businesses related to agriculture.  
Towards this end, the State shall encourage active private sector participation in 
extending agricultural insurance to members of the agricultural sector by allowing the 
Philippine Crop Insurance Corporation to undertake reinsurance agreements with private 
sector agricultural insurers and to extend its insurance services to livestock, aquaculture and 
fishery, agrofishery, and forest plantation insurance. 
SECTION 2.  Section 1 of Presidential Decree No. 1467, as amended, is hereby further 
amended to read as follows:  
“SEC. 1. Creation of the Philippine Crop Insurance Corporation. – There is 
hereby created a body corporate to be known as the “Philippine Crop Insurance 
Corporation” (PCIC and herein called the Corporation) which shall be attached to the 
Department of Agriculture for budgetary purposes. The Corporation shall insure 
[qualified] farmers against losses arising from natural calamities, plant diseases, and 
pest infestations. [Initially,] [t]The Corporation shall provide insurance coverage for 
ALL AGRICULTURAL COMMODITIES, INCLUDING palay crops, and [later on to] 
other crops, without prejudice to the inclusion of other non-crop agricultural assets, 
such as [but not limited to] LIVESTOCK, AQUACULTURE AND FISHERY, 
AGROFORESTRY, FOREST PLANTATIONS, machineries, equipment, transport 


 
facilities, and other related infrastructures, as the Board of Directors of the Corporation 
may determine. Such [crop] insurance shall cover, in every case, the cost of production 
inputs, the value of the farmer’s own labor and those of the members of his household, 
including the value of the labor of hired workers, and a portion of the expected yield as 
the Board of Directors, in its discretion, decide to insure. Such insurance protection, 
however, shall exclude losses arising from avoidable risks emanating from or due to 
the negligence, malfeasance or fraud committed by the insured or any member of his 
immediate farm household or employee [or the failure of the insured to follow 
proven 
farm 
practices]. 
THE 
CORPORATION 
SHALL 
ALSO 
OFFER 
REINSURANCE SERVICES FOR ENTITIES WILLING TO OFFER AGRICULTURAL 
INSURANCE.”  
 
SECTION 3. Subsection 3.11 of Section 3 of Presidential Decree No. 1467, as amended, is 
hereby further amended to read as follows:  
 
“3.11. To generate internal funds by floating bonds, expansion to other 
insurance 
lines, 
INCLUDING 
REINSURANCE 
AGREEMENTS 
WITH 
AGRICULTURAL COOPERATIVES, FARMERS’ ASSOCIATIONS, AND OTHER 
PRIVATE SECTOR PARTICIPANTS IN THE AGRICULTURAL INSURANCE 
MARKET, and extending coverage to other areas of agriculture, SUCH AS 
LIVESTOCK, AQUACULTURE AND FISHERY, AGROFORESTRY, OR FOREST 
PLANTATIONS,  in order to address THE insurance needs of the target sector and to 
do and perform acts and things and to exercise all the general powers conferred by law 
upon the Corporation as are incidental or conducive to the attainment of the objectives 
of the Corporation.”  
 
SECTION 4. All laws, decrees, executive orders, proclamations, and administrative 
regulations, or parts thereof inconsistent herewith are hereby repealed or modified accordingly. 
 
SECTION 5. This Act shall take effect fifteen (15) days after its complete publication in a 
newspaper of general circulation.  
 
  
Approved,