Section 2Sec./Art. 2

Declaration of Policy. It is 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 crops, including the agricultural facilities and related infrastructures, with the end in view of encouraging lending institutions to extend credit to the agricultural sector.

Considering that a major sector of our farming economy is composed of marginalized subsistence farmers, who by definition shall be farmers who depend primarily on farming for their subsistence and till their own land with the help of members of their household (hereinafter referred to as subsistence farmers'), it is likewise declared a policy of the State to extend to said farmers such subsidies as may be called for in order to bring the benefits of this program within their reach.

In pursuit of this policy, and in order to maximize the benefits under this program, the State shall encourage the formation, development and promotion of people's organizations and/or associations such as cooperatives as provided for by Section 23 of Article II, Sections 15 and 16 of Article XII, and Sections 15 and 16 of Article XIII of the Constitution, as service channels through which such benefits shall preferably be extended.