Crop Insurance Program for Small Farmers Act of 2025
Filed on July 16, 2025, and referred to the Committees on Agriculture, Food and Agrarian Reform; Government Corporations and Public Enterprises; and Finance; it has been pending in committee since August 19, 2025.
The bill addresses the need for better crop insurance for small farmers, who are vulnerable to agricultural risks.
The bill responds to ongoing challenges faced by small farmers in accessing crop insurance.
Crop Insurance Program for Small Farmers Act of 2025
The Crop Insurance Program for Small Farmers Act of 2025 aims to establish mandatory crop insurance coverage for small farmers, providing a national government subsidy to enhance their protection against agricultural risks.
Compared with current law:
Farmers have limited access to crop insurance.
Farmers will have mandatory crop insurance coverage.
Insurance is optional for self-financed farmers.
Insurance will be mandatory for all small farmers.
Limited government subsidies hinder insurance uptake.
The government will provide full or partial premium subsidies.
All farmers of palay and other crops owning or cultivating eight hectares of farmland and below will automatically be covered under the Crop Insurance Program.
Source · full text✦ Dashed tags are AI-suggested nuance; solid tags follow the committee taxonomy.
Stalled: the bill has been pending in committee for over two months with no recorded action since its referral on August 19, 2025.
No floor deliberations yet — this measure has not reached plenary. Its committee-stage actions appear under Legislative history above.
Die oil. i TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 JUL 16 P4:08 First Regular Session RECEIVID S! SENATE S. B. No._ 673 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 PCIC's 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
NI:: 061 TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 JUL 16 P4:09 First Regular Session ) RECE L05 SENATE S. B. No. 673 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:
SECTION 1. Short Title. - This Act shall be known as the "Crop Insurance
2 Program for Small Farmers Act of 2025"
SEC. 2. Declaration of Policy. - It shall be the policy of the State to promote
4 genuine inclusive growth and alleviate poverty. It is likewise the policy of the State to promote a just and dynamic social order that shall ensure prosperity, promote full 6 employment, a rising standard of living and an improved quality of life for all. In pursuit of this, the State shall develop a program that will ensure that farmers and their crops are protected from negative impacts of extreme weather/climate conditions, plant diseases and pest infestations, and other disasters, thereby protecting crop production, ensuring food security and farmers' livelihood.
SEC. 3. Crop Insurance for Small Farmers Program. - (a) The Department of
12 Agriculture (DA) in coordination with the Philippine Crop Insurance Corporation (PCIC)
shall develop a special Crop Insurance Program for Small Farmers, guided by the following objectives: 1. Promotion of food security through palay and other crop production; 2. 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. (b) The Crop Insurance Program for Small Farmers shall operate under an 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 consuitation 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
1 published in the Official Gazette or in a newspaper of general circulation in the Philippines.
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 17 update a database of farmers covered under this Program, and determine their 18 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. (d) All farmers covered under this Act shall be deemed to have entered into a contract of insurance with the National Government through the PCIC;
(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 3 covered by the Crop Insurance Program for small farmers.
SEC. 6. Rate of Premium. - The rate of premium shall be determined by the
5 Board of Directors of the Philippine Crop Insurance Corporation (PCIC) subject to the 6 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. 9 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 12 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 15 be included in the National Expenditure Program.
SEC. 8. Claim to Indemnity. - In cases where the identified trigger or threshold
17 reference point has been breached, the insured person shall submit a written claim to 18 indemnity in respect of losses incurred to the municipal agriculturist. The municipal 19 agriculturist shall then forward the written claim to indemnity to the PCIC. The payment of the indemnity shall be in accordance with the terms and 21 conditions set forth by the DA and PCIC under Section 4 of this Act.
SEC. 9. Implementing Rules and Regulations. - The Department of Agriculture,
and the Philippine Crop Insurance Corporation, in consultation with relevant government agencies and instrumentalities, shall provide the necessary implementing rules and regulations within sixty (60) days upon the approval of this Act. Such rules
1 and regulations shall take effect after they have been made and shall be published in 2 at least two (2) newspapers of general circulation.
SEC. 10. Separability Clause. - If any provision of his Act is declared invalid or
4 unconstitutional, the remaining parts or provisions not affected shall remain valid.
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.
SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspapers of general circulation. Approved,
Reproduced from the Senate document. The official PDF is the authoritative version.