THE House of Representatives has approved a measure seeking to strengthen and expand the country’s agricultural insurance system, providing Filipino farmers and fisherfolk broader protection against typhoons, floods, droughts, diseases, pests and other threats to their livelihoods.
House Bill No. 10365, which was approved on third and final reading last Wednesday with 201 affirmative votes, no negative votes and no abstentions, seeks to strengthen the Philippine Crop Insurance Corporation (PCIC) by expanding the agricultural activities and risks covered by its insurance programs.
House Speaker Faustino “Bojie” G. Dy III, one of the bill’s authors, said stronger agricultural insurance is necessary because a single calamity can wipe out not only a farmer’s harvest but also the capital, income and resources needed to resume production.
“Kapag tinamaan ng bagyo o baha ang isang magsasaka, hindi lang pananim ang nawawala. Pati puhunan, kita ng pamilya, at kakayahan niyang makapagtanim muli ay nanganganib,” Dy said.
The measure expands insurance coverage beyond traditional palay and corn crops to include high-value crops, livestock, aquaculture and fishery products, agroforestry crops and forest plantations.
It also allows coverage for agricultural machinery, equipment, transport facilities and related infrastructure, as well as life and accident term insurance for farmers and fisherfolk.
As far as practicable, agricultural insurance would cover production inputs, the market-valued labor of farmers or fisherfolk and their households and hired workers, and a portion of the expected yield.
The bill also authorizes the PCIC to develop parametric or index-based insurance and other innovative insurance products to provide more responsive protection against agricultural losses.
Dy said the country’s agricultural insurance system must keep pace with the changing risks faced by farmers and fisherfolk.
“For a farmer, one typhoon can mean losing the crop, the money spent on seeds and fertilizer, months of labor, and the income the family was counting on. Without adequate protection, one disaster can become years of debt,” he said.
Under the measure, the PCIC would be granted a perpetual corporate term, subject to periodic performance evaluations.
The bill also allows the PCIC to enter into public-private partnerships, joint ventures and similar arrangements with agricultural cooperatives, farmers’ associations and other private-sector groups to expand insurance services.
Government premium subsidies for qualified subsistence farmers cultivating no more than three hectares would be retained, subject to periodic review. Any premium share that farmers are required to pay must also remain reasonably affordable.
Dy, who served three terms as governor of Isabela, said expanded insurance coverage would help farmers and fisherfolk recover faster after disasters and return to production, strengthening household livelihoods and the country’s food security.
“Insurance is not simply compensation after a loss. It can mean having the resources to plant again, repair equipment, restore a livelihood, and continue producing food for our communities,” Dy said.
“Kapag may proteksyon ang ating mga magsasaka at mangingisda, mas mabilis silang makakabangon. Kapag mas mabilis silang nakababangon, mas matatag din ang ating produksyon ng pagkain,” he added.
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