Resilient Agriculture Support and Crop Insurance Act of 2025

"*. TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 JUL 17 P4:30 S. NEAT 14 Introduced by Senator Raffy T. Tulfo AN ACT ESTABLISHING A COMPREHENSIVE AGRICULTURAL RESILIENCE FRAMEWORK BY PROVIDING A CROP INSURANCE PROGRAM AND A DIRECT TYPHOON RECOVERY ASSISTANCE PROGRAM FOR SMALL FARMERS, MANDATING GOVERNMENT SUBSIDIES FOR PREMIUMS, ENSURING TRANSPARENT DISBURSEMENT, AND FOR OTHER PURPOSES EXPLANATORY NOTE The Philippines, lying within the Pacific typhoon belt, experiences an average of 20 tropical cyclones annually, with around 8 to 9 making landfall, frequently disrupting agricultural productivity across the country (Philippine Atmospheric, Geophysical and Astronomical Services Administration, or PAGASA). Typhoons consistently inflict significant economic losses, particularly in the agriculture sector. In 2024, severe tropical storm Kristine inflicted an estimated P3.4 billion in agricultural damage. The storm destroyed 76,785 hectares of farmland, with 28,885 hectares rendered completely unrecoverable. It resulted in the loss of 174,087 metric tons of crops, affecting 79,904 farmers. Rice production suffered the greatest impact, accounting for P3.1 billion in losses and 164,510 metric tons in volume reduction, as reported by the Philippine Star on October 30, 2024. According to the Department of Agriculture, over 28,000 hectares of high-value crops, many in their reproductive or maturity stages, were also destroyed before harvest. Corn losses were valued at P43.34 million, while high-value crops accounted for P161.44 million. Infrastructure damage included P26 million in irrigation systems and P43.36 million in farm structures such as diversion dams, rain shelters, greenhouses, animal houses, and administrative buildings.

In the same year, super typhoon Julian affected 33,110 farmers and caused an estimated P607 million in agricultural damage, according to the Department of Agriculture. Based on assessments conducted by DA Regional Field Offices in the Cordillera Administrative Region (CAR), Ilocos Region, Cagayan Valley, and Central Luzon, losses were recorded across multiple sectors, including rice, corn, high-value crops, livestock and poultry, irrigation systems, and other agricultural infrastructure. Despite these recurring catastrophes, government support remains limited and often delayed. Current assistance mechanisms include the Philippine Crop Insurance Corporation (PCIC), which provides indemnity-based payouts to insured farmers, and the Survival and Recovery (SURE) Loan Program, which offers zero-interest, collateral-free loans to affected farmers. However, both programs have limited reach, and many farmers remain uninsured, unregistered, or excluded from formal financial systems. In 2024, PCIC released P24.73 million in indemnities to 1,437 farmers and fisherfolk in Mindoro; P93.8 million to 10,781 farmers affected by Super Typhoon Julian; and P451 million to around 49,000 farmers in the aftermath of Severe Tropical Storm Kristine. These payouts, however, ranged from only P8,700 to P17,200 per farmer, barely enough to cover basic recovery needs, and were often delayed due to administrative constraints. While the existing crop insurance system provides some level of protection, it is neither universal nor sufficient. Many small-scale farmers, particularly those cultivating below eight (8) hectares, continue to fall. This bill proposes a comprehensive and transformative policy approach by combining two pillars of support: 1. An Index-Based Crop Insurance Program for Small Farmers, which automatically covers all farmers cultivating eight (8) hectares or less. This program is triggered by pre-defined weather thresholds monitored by PAGASA and accredited weather stations, removing the need for a formal state of calamity declaration. Premiums will be fully subsidized for those with five (5) hectares or less and partially subsidized (50%) for those with more than five but not exceeding eight hectares.

The farmer's share may be paid in cash or in paddy, valued based on the prevailing market price as determined by the DA. 2. A Direct Typhoon Recovery Assistance Program, which provides unconditional cash assistance to typhoon-affected farmers registered in the Registry System for Basic Sectors in Agriculture (RSBSA). Those who suffer near-total crop loss shall receive an additional recovery supplement. All disbursements shall be processed through secure, digitally verifiable platforms such as e-wallets or government-accredited financial institutions to eliminate delays and prevent corruption. To ensure transparency and public accountability, the Department of Agriculture shall maintain a centralized, real-time Beneficiary Dashboard disclosing verified names, disbursed amounts, disbursement dates, and claim statuses. This will allow the public, policymakers, and oversight bodies to monitor fund distribution and ensure program integrity. By institutionalizing both pre-disaster insurance protection and post-disaster recovery aid, this bill aims to reduce the long-term vulnerability of farmers to climate- induced shocks while promoting financial inclusion and rural resilience. In view of the foregoing, the immediate passage of this bill is earnestly sought. RAFFY T. TULFO

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES JUL 17 P4:30 First Regular Session RECEI. J 3Y SENATE S. NO. 714 Introduced by Senator Raffy T. Tulfo AN ACT ESTABLISHING A COMPREHENSIVE AGRICULTURAL RESILIENCE FRAMEWORK BY PROVIDING A CROP INSURANCE PROGRAM AND A DIRECT TYPHOON RECOVERY ASSISTANCE PROGRAM FOR SMALL FARMERS, MANDATING GOVERNMENT SUBSIDIES FOR PREMIUMS, ENSURING TRANSPARENT DISBURSEMENT, 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 "Resilient Agriculture

Support and Crop Insurance Act of 2025."

Sec. 2. Declaration of Policy. — It is the policy of the State to uphold and promote

the welfare of the agricultural sector as mandated by the Constitution. Pursuant to Article II, Section 9 of the 1987 Philippine Constitution, the State shall 6 "promote a just and dynamic social order that will ensure the prosperity and 7 independence of the nation and free the people from poverty through policies that provide 8 adequate social services, promote full employment, a rising standard of living, and an improved quality of life for all." Likewise, under Article XIII, Section 5, the State shall provide support to agriculture through appropriate technology and research, and adequate financial, production, marketing, and other support services.

Sec. 3. Comprehensive Agricultural Protection Framework. — The Department of

2 Agriculture (DA), in coordination with the Philippine Crop Insurance Corporation (PCIC), 3 shall establish a dual-track agricultural protection framework consisting of: (a) A Crop Insurance Program for Small Farmers, which shall provide index-based 5 insurance coverage against crop loss due to weather-related events including but not 6 limited to typhoons, droughts, floods, and extreme rainfall, and; (D) A Typhoon Recovery Assistance Program, which shall provide direct financial 8 aid to qualified farmers affected by typhoon events as officially declared by the Philippine 9 Atmospheric, Geophysical and Astronomical Services Administration (PAGASA).

Sec. 4. Crop Insurance Program for Small Farmers. - (a) The Crop Insurance Program

for Small Farmers shall cover all palay and other crop farmers owning or cultivating not more than eight (8) hectares of farmland, provided they are duly registered under the Registry System for Basic Sectors in Agriculture (RSBSA). (b) The subsidy for insurance premiums shall be as follows: 1. Farmers owning or cultivating up to five (5) hectares shall be entitled to full (100% premium subsidy from the National Government; 2. Farmers owning or cultivating more than five (5) hectares but not exceeding eight (8) hectares shall be entitied to fifty percent (50%) premium subsidy from the National Government. (c) Premiums not covered by government subsidy may be paid either in cash or in kind through an equivalent quantity of paddy. The valuation of paddy shall be based on the prevailing market price as determined by the Department of Agriculture at the time of payment. (d) The Crop Insurance Program shall be index-based, triggered by weather thresholds determined by PAGASA and such other accredited weather stations. A breach

1 of the threshold shall obligate the PCIC to release the appropriate insurance payout to the affected farmers. A declaration of a state of calamity shall not be a prerequisite to the release of indemnity. (e) Farmers currently covered under existing crop insurance programs shall have the option to remain therein or to enroll under the Crop Insurance Program for Small Farmers as provided in this Act.

Sec. 5. Typhoon Recovery Assistance Program. — (a) The Typhoon Recovery

8 Assistance Program shall provide direct cash assistance and recovery supplements to 9 farmers whose crops were damaged or destroyed as a result of a typhoon event declared by PAGASA. (b) Only farmers who are registered under the RSBSA and validated by their respective Municipal Agriculture Offices (MAOs) shall be eligible for assistance under this Program. (c) The direct cash assistance shall be unconditional and intended for the immediate recovery and stabilization of affected households. In cases of total or near- total crop loss, farmers shall be entitled to an additional recovery supplement, the amount of which shall be determined by the DA based on need and available resources. (d) Disbursement of funds shall be made through secure and accredited digital financial service providers. The DA shall ensure that payments are disbursed efficiently, promptly, and with minimal administrative burden on the beneficiaries.

Sec. 6. Transparency and Public Disclosure. - To promote transparency,

accountability, and public trust, the Department of Agriculture shall maintain a centralized, publicly accessible Beneficiary Dashboard which shall display, in real time, the following information: 1. Names of verified beneficiaries;

2. Amounts disbursed under both programs; 3. Dates of disbursement; 4. Status of claims filed and paid; and 5. Other relevant data as may be necessary. The Beneficiary Dashboard shall be regularly updated and shall comply with the provisions of Republic Act No. 10173, otherwise known as the "Data Privacy Act of 2012." 7 Sec. 7. Oversight and Audit. — (a) A Congressional Oversight Committee on Agricultural Disaster Resilience shall be created to oversee the implementation of this Act. The 9 Committee shall review program performance, evaluate outcomes, and recommend policy improvements. (b) The Commission on Audit (COA) shall conduct regular and special audits on the use of funds allocated for the Crop Insurance Program and the Typhoon Recovery Assistance Program to ensure fiscal integrity, lawful disbursement, and efficient utilization. (c) The rate of premium for the Crop Insurance Program shall be determined by the Board of Directors of the Philippine Crop Insurance Corporation and shall be subject to the approval of the President of the Republic of the Philippines.

Sec. 8. Implementing Rules and Regulations. - Within 60 days from effectivity,

the DA, in coordination with PCIC, DBM, BSP, and other relevant agencies, shall issue joint Implementing Rules and Regulations (IRR).

Sec. 9. Separability Clause. - If any provision of this Act is declared invalid or

unconstitutional, other provisions hereof which are not affected thereby shall remain in full force and effect.

Sec. 10. Repealing Clause. — All laws, decrees, executive orders, or regulations

inconsistent with the provisions of this Act are hereby repealed or amended accordingly.

Sec. 11. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in two (2) newspapers of general circulation in the Philippines. Approved,