Sponsored
by: The
ChanRobles Group
A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
theChan Robles Virtual Law Library
This page features the full text of
Republic Act No. 7607
Magna
Carta of Small Farmers
AN
ACT PROVIDING A MAGNA CARTA OF SMALL FARMERS
REPUBLIC
ACT NO. 7607AN
ACT PROVIDING A MAGNA CARTA OF SMALL FARMERS
Section
1. Title. — This Act shall be
known as the "Magna Carta of Small Farmers."
CHAPTER
I
GENERAL
PROVISIONS
Sec.
2. Declaration of Policy. — It
is the declared policy of the State to give the highest priority to the
development of agriculture such that equitable distribution of benefits
and opportunities is realized through the empowerment of small farmers.
While the State recognizes the fact that the welfare and development of
the small farmers is their primordial responsibility, the State shall
provide
the necessary support mechanism towards the attainment of their
socioeconomic
endeavors.chanrobles virtuallaw libraryred
Recognizing
that rural development based on growth and equity requires full
integration
of women and youth in the mainstream of development, the State shall
ensure
that these sectors are provided ample opportunity to develop their
skills,
acquire productive employment and contribute to their communities to
the
fullest of their capabilities.
To
ensure the efficient use and sustainability of land, water and other
productive
resources, the State shall ensure that ecological balance and
environmental
protection are maintained and observed in its pursuit of rural
development
goals.
In
pursuance of this policy, the State shall recognize the right of small
farmers and farmworkers, as well as cooperatives and independent
farmers'
organizations, to participate in the planning, organization, management
and implementation of agricultural programs and projects especially
through
the bayanihan spirit. It shall support agriculture through appropriate
policies, research, technology and training, and adequate financial,
production,
marketing and other support services to enhance agricultural
productivity.
In addition, it shall provide incentives and reward systems to small
farmers
so as to accelerate agricultural productivity and to promote
self-sufficiency
and full development of agricultural potentials.
Sec.
3. Scope of application. — This
Act shall cover all small farmers and, to the extent herein provided,
the
departments, offices, agencies, subdivisions or instrumentalities of
the
National Government.
Sec.
4. Definition of Terms. — For
purposes of this Act, the term:
(1) "Small
farmer" refers to natural persons dependent on small-scale subsistence
farming as their primary source of income and whose sale, barter or
exchange
of agricultural products do not exceed a gross value of One hundred
eighty
thousand pesos (P180,000) per annum based on 1992 constant prices. An
inter-agency
committee composed of the Department of Agrarian Reform, the Department
of Trade and Industry, the Department of Finance and the National
Economic
and Development Authority and headed by the Department of Agriculture
may
conduct periodic review and adjustments of the income level to take
into
account the effects of changes in inflation, devaluation and consumer
price
index;
chanrobles virtuallaw libraryred(2) "Farmers'
organization" refers to farmers' cooperatives, associations, or
corporations
duly registered with appropriate government agencies and which are
composed
primarily of small agricultural producers, farmers, farmworkers, and
other
agrarian reform beneficiaries who voluntarily join together to form
business
enterprises which they themselves own, control and patronize;(3) "Small
agricultural producer" refers to any self-employed individual who, by
himself
or with his family, provides the primary labor requirement of his
business
enterprise or one who earns at least fifty percent (50%) of his gross
income
from the payment, proceeds or income of the labor he provides;
(4) "Production
Infrastructure" refers to farm-to-market roads, irrigation, rural
electrification,
ports, drying areas, public sites, warehouses and other physical
facilities
used for productivity enhancing services, extension management
assistance,
training, research and development;
(5) "Pre-harvest
activities" include, but are not limited to, seedbed and land
preparation,
planting, weeding, pest and disease control, fertilizer application,
water
management and harvesting;
(6) "Postharvest
activities" include, but are not limited to, threshing drying, milling,
storing and handling of produce and such other activities as shelling,
stripping, winnowing, chipping and washing;
(7) "Extension
services" refers to the technology transfer provided by the Government
and non-government organizations to the agricultural sector such as
training
of farmers, credit assistance and the like;
(8) "Transportation
infrastructure" includes roads, bridges, ports, airports, and the
different
modes of transportation using these infrastructure;
(9) "Pre-harvest
facilities" include, but are not limited to, plows, harrows, tractors,
rotavators and sprayers;
(10) "Postharvest
facilities" include, but are not limited to, threshers, moisture
meters,
dryers, weighing scales, milling equipment, storage facilities, buying
stations, market infrastructure and transportation facilities;
(11) "Market
infrastructure" refers to facilities such as market buildings,
slaughterhouses,
holding pens and cold storage used by the farmers in marketing their
produce;chanrobles virtuallaw libraryred
(12) "Input
subsidy" refers to assistance extended by the Government to the farmers
in terms of discounted prices of farm inputs such as fertilizer,
pesticide
and seed;
(13) "Agrarian
reform credit" includes production or other types of loans used for the
acquisition of work animals, farm equipment and machinery, seeds,
fertilizers,
poultry and livestock feeds and other similar items; acquisition of
lands
authorized under the Comprehensive Agrarian Reform Law (CARL);
construction
or acquisition of facilities for the production and effective
merchandising
of agricultural commodities;
(14) "Price
subsidy" refers to the payment of Government of an additional amount
for
every unit of output sold by the farmers in the open market;
(15) "Farmworker"
is a natural person who renders service value as an employee or laborer
in an agricultural enterprise or farm regardless of whether his
compensation
is paid on a daily, weekly, monthly or pakyaw basis;
(16) "Upland
farming" refers to planting of upland crops which usually require less
water than other crops, as in non-irrigated and elevated farm areas;
(17) "Rural
bank" refers to banks duly organized under Republic Act Numbered Seven
hundred twenty with authority to operate under existing laws;
(18) "Cooperative
bank" refers to banks whose owners are farmer's associations or
cooperatives;
(19) "Private
development bank" refers to the banks duly organized under Republic Act
Numbered Four thousand ninety-three with authority to operate under
existing
laws;
(20) "Banks"
collectively used, means the rural banks, cooperative banks, and
private
development banks as defined in paragraphs 17, 18 and 19, Section 3 of
this Act;
(21) "Irrigated
lands" are agricultural lands which are supported by irrigation
services;
(22) "Non-irrigated
lands" are agricultural lands which lack irrigation systems and are
usually
rainfed;
(23) "Certified
seed" refers to seeds that passed the seed certification standards of
the
Bureau of Plant Industry and which are the progeny of foundation,
registered
or certified seeds that are so handled as to maintain satisfactory
genetic
identity and varietal purity;
(24) "Good
seed" refers to seeds that are the progeny of certified seeds so
handled
as to maintain a minimum acceptable level of genetic purity and
identity
and which is selected at the farm level;
(25) "Cooperative"
refers to a duly registered association of persons, with a common bond
of interest, who have voluntarily joined together to achieve a lawful
common
social economic end, making equitable contributions to the capital
required
and accepting a fair share of the risks and benefits of the undertaking
in accordance with universally accepted cooperative principles;
(26) "Integrated
Pest Management (IPM)" refers to a pest management system which
utilizes
all suitable methods and techniques in as compatible a manner as
possible
to maintain the pest population at a level below that causing
economically
unacceptable damage or loss without endangering the environment; andchanrobles virtuallaw libraryred
(27) "Locally
available materials" refers to form lumber, gravel and sand, nipa,
sawali,
old G.I. sheets and other low-cost, indigenous or used materials that
could
be used as inputs in small infrastructure projects.
CHAPTER
II
FARMER'S
ORGANIZATION
Sec.
5. Right to Organize. — The State
recognizes the right of farmers to organize themselves to promote their
welfare and advance or safeguard their interests. Towards these end,
the
Government shall assist small farmers in establishing such self-help
organizations
such as farmers' cooperatives and associations.
In
particular, the Government shall encourage the formation of existing
cooperatives
among farmers in order to enable them to purchase inputs at lower cost
and obtain fair prices for their produce.
Sec.
6. Farmer's Representation in
Government. — After voluntarily organizing themselves on the barangay,
municipal, provincial and regional levels, the farmers who have been
elected
through all levels shall elect from among themselves their national
officials
who, notwithstanding existing laws to the contrary, shall occupy a seat
in the boards of concerned government agencies such as, but not limited
to, the Philippine Coconut Authority, the National Food Authority, the
Philippine Crop Insurance Corporation, the National Irrigation
Administration
and others.
On
all other levels, the farmer representatives shall serve as members of
planning and implementing units of the local governments and shall act
as the official representatives of the farmers with whom the Government
shall coordinate with: Provided, That all farmer representatives are
members
of primary farmers' organizations preferably cooperatives and have been
elected in all preceding levels.
CHAPTER
III
EMPOWERMENT
OF THE SMALL FARMERS
Sec.
7. General Provisions. — Empowerment
of small farmers refers to provision of opportunities whereby farmers
can
have access to ownership or management of production resources. To
achieve
this, small farmers' rights and obligations that specifically promote
such
empowerment are hereby given a legislative mantle. Through these
provisions,
the farmers' rights to participate in the charting of their political,
economic and social development are made inviolable. Likewise, the
corresponding
obligations of the farmers to initiate, or undertake patriotic and
nationalistic
endeavors must be fulfilled.
Sec.
8. Farmers' Rights. — The farmers
have the right to:
(1) Conduct
their activities in an atmosphere guaranteed by a support price program
for certain agricultural commodities such as rice and corn;(2) Participate
in a market free from monopoly, cartel or any other situation which may
suppress prices to their disadvantage;
(3) Be
covered by social security to serve as protection from event such as
calamities,
death, sickness and disability;
(4) Avail
of credit at minimal interest rates and with a minimum of collateral
requirements
for their farm and basic household needs;
(5) Avail
of and distribute farm inputs and services;
(6) Be
heard and represented in the Government;
(7) Be
regularly informed of such vital information as market prices,
government
agricultural policies, market demands and farming practices;
(8) Benefit
from our country's natural resources under existing laws; chanrobles virtuallaw libraryred
(9) Pursue
any appropriate education and skills development towards the
improvement
of the quality of life;
(10) Eventually
assume certain processing and marketing functions of government
agencies;
and
(11) Avail
of technical assistance from the appropriate government agency in the
preparation
of project feasibility studies in availing loans and other forms of
government
economic assistance.
Sec.
9. Farmers' Obligations. — The
farmers shall:chanroblesvirtualawlibrary
(1) Make
use of their farmers' organizations preferably cooperatives in order to
enhance their capabilities in production, processing, marketing and
financing
towards self-reliance;(2) Aim
for increased productivity through the use of recommended farm
practices
and quality inputs;
(3) Comply
with the terms and conditions stipulated in the availment of any form
of
assistance from the Government, financial institutions and
non-government
organizations to enable others to usually benefit from such assistance;
(4) Adopt
production and marketing strategies to avail of economies of scale,
soil
and climatic conditions, idle farm labor and innovative agricultural
technology
through crop zonification, diversification, home and backyard
industries,
farming systems and similar activities;
(5) Through
their cooperative, share with the consuming public the benefits derived
from economies of scale, integration of processing and marketing
activities
and the application of better technology in the form of reasonable
prices
and superior quality of products;
(6) Share
in the delivery of public services by contributing available labor and
material resources to activities such as the maintenance of irrigation
canals, the construction of small water impounding projects, the
establishment
of buying stations and public markets, and the establishment of plant
nurseries
and seed-banks;
(7) Exert
efforts to meet local demand requirements to avert any shortage that
may
necessitate importation;
(8) Participate
in the conservation, protection and development of the national
patrimony;
(9) Promptly
pay all applicable fees, license fees and taxes to the appropriate
government
agencies;
(10) Participate
in and contribute to government insurance and social security programs;
and
(11) Undertake
self-help community development projects such as cottage industries,
backyard
farming and other economic-enhancement projects.
CHAPTER
IV
INFRASTRUCTURE
AND FARM INPUTS
Sec.
10. Provision of Infrastructure
Support Inputs and Services. — Consistent with the country's thrust for
social entity and increased agricultural productivity, the Government
shall
provide infrastructure support, access to farm inputs and services to
the
agriculture sector, particularly to small farmers based on their
absorptive
capacity. In the construction and maintenance of infrastructure
projects,
the Government shall undertake this with the farmers' organizations for
the purpose of utilizing locally available manpower and materials.
Every
farmer shall be assisted in gaining access to, obtaining, owning or
opening
facilities necessary for pre- and postharvest activities, for support
services,
and for procurement and distribution of inputs through their farmers'
organizations.
Each city or municipality which is predominantly agriculture-based
shall
ensure that appropriate linkages with component barangays,
non-government
organizations and concerned government agencies are established to
ensure
that such assistance is made available to local farmers.
Sec.
11. Transportation Infrastructure.
— The Government shall provide farm-to-market roads, feeder roads and
bridges
which will link the farms to the market. Priority shall be given to
areas
predominantly populated by small farmers and where agricultural
productivity
is relatively low.chanrobles virtuallaw libraryred
To
ensure accessibility of markets to farmers and thereby minimize product
wastage, the Government shall also provide for the construction of
additional
piers or wharves and airports and the improvement of such existing
facilities
especially in areas having surplus agricultural production and in other
strategic areas in the country. It shall devise schemes to allow
farmers
to operate and eventually obtain their own transport equipment.
The
Department of Public Works and Highways shall, in coordination with
other
agencies or subdivisions of the National Government, implement the
provisions
of this section. Farmers' organizations shall participate in site
identification,
preparation, actual execution and maintenance of infrastructure
projects
especially in tapping available local manpower and materials.
Sec.
12. Communications Infrastructure.
— To facilitate farmers' access to vital information, the Government
shall
make available at least one (1) communication facility in each
municipality
for this purpose. This facility is to be operated by the Department of
Agriculture or by a designated viable farmers' organization.
Sec.
13. Postharvest Facilities/Services.
— Every barangay which is predominantly agriculture-based shall be
entitled
to at least one (1) storage facility and a multipurpose pavement/plaza
which can be used for various purposes including drying of agricultural
produce.
These
shall be located in the chosen barangay site or in any area to be
approved
by the sangguniang barangay in consultation with the small farmers and
farmers' organizations who shall provide the labor and other locally
available
materials for the construction and maintenance of the facilities.
Priority
shall be given to areas where no such facilities are available and
predominantly
populated by small farmers. The selected site shall, as much as
practicable,
be accessible by transportation and communication facilities and must
be
near the center of the barangay.
The
farmers' organizations may collect reasonable fees for services
rendered
in connection with the use of such facilities; Provided, That the
collections
therefrom shall be used only for the maintenance, improvement and
expansion
of these facilities: Provided, further, That an amount representing
rental
fees for the land shall be remitted to the barangay, where applicable.
Sec.
14. Postharvest Facilities. —
The National Food Authority (NFA) shall establish the necessary
postharvest
facilities such as rice mills, dryers, threshers, warehouses, cold
storage
and other facilities which are needed in the area. Such postharvest
facilities
shall be leased to farmers' organizations. Viable cooperatives shall
have
the option to buy such facilities from the NFA. Underutilized or
non-operational
postharvest facilities of the Government shall be made available to
farmers'
organizations through lease or sale.
Sec.
15. Market Infrastructure. —
To assure farmers of markets for their produce, the Government shall
assist
farmers' organizations in establishing and operating market
infrastructure,
facilities and equipment.
Sec.
16. Use of Good Seeds and Planting
Materials. — The State shall ensure that every farmer has the equal
opportunity
to avail of, to produce and to market good seeds and planting materials
recommended by the Department of Agriculture as capable of producing
high-yielding,
pest-and-disease resistant, and widely-adapted crops for irrigated,
rainfed
and upland areas. Farmers' organizations shall coordinate with the
field
offices of the Department of Agriculture and other concerned government
agencies in ensuring that seeds and the means necessary to engage in
the
production and marketing of seeds suited to prevailing conditions in
their
respective communities are made available to small farmers.
To
ensure the constant availability of appropriate and affordable seeds of
recommended varieties, the Department of Agriculture, through the
Bureau
of Plant Industry, and in cooperation with the private seed producers'
associations, the farmers' organizations, the Institute of Plant
Breeding
of the University of the Philippines at Los Baños, and other
state
universities, colleges, and other institutions, shall extend all the
necessary
support needed to give the farmers the capability to undertake seed
production
and distribution services.
The
Department of Agriculture shall conduct information campaigns and
accelerate
dissemination of technology on the use, production and storage of
quality
seeds. It shall also provide seed quality control services to
discourage
the use of inferior seeds and other varieties.
Sec.
17. Use of Fertilizers and Pesticides.
— The Government together with the small farmers shall encourage the
use
of fertilizers and pesticides which have an acceptable level of
deleterious
effects on the health and the environment. They shall also promote the
use of organic fertilizer and Integrated Pest Management (IPM). In
addition,
they shall promote efficient and proper usage of fertilizer and
pesticide
taking into consideration the characteristics of the soil and crop and
thereby eliminate losses due to wasteful and improper application. The
Government shall support farmers' organizations in the trading of
fertilizers
and pesticides.chanrobles virtuallaw libraryred
The
Department of Agriculture shall formulate policies and implement
programs
regulating the use of fertilizers and pesticides. It shall conduct an
extensive
information campaign on the nature and consequences of using highly
toxic
pesticides. It shall monitor and regulate the sale of pesticides to
ensure
that banned pesticides are not sold in the market. It shall conduct
thorough
evaluation to check the data submitted by pesticide companies.
The
Department of Agriculture shall likewise ensure adequate supply of
fertilizers
at reasonable prices. To eliminate added cost passed on by traders to
the
farmers, farmers' organizations shall be encouraged to undertake the
distribution
of fertilizers to their members.
CHAPTER
V
FARM
MACHINERY AND EQUIPMENT
Sec.
18. Availability of Farm Machinery
and Equipment. — The Department of Agriculture, through the barangay or
municipal governments and farmers' organizations, shall support
activities
to ensure the availability of farm machinery and equipment for the use
of small farmers in both pre- and postharvest operations. For purposes
of monitoring, all farm machinery and equipment must be registered with
the municipal government. The Department shall devise a program to
increase
the population of draft animals in the area. Local agricultural
officers
shall, in coordination with farmers' organizations, devise schemes in
the
sharing, pooling, leasing or acquiring draft animals, equipment or
machinery
needed by the farmers.
The
Government shall support the farmers in acquiring their inventory of
farm
equipment. With the use of grants-in-aid, as well as other domestic and
foreign funds, the Government shall acquire and distribute to farmers'
organizations farm equipment and machinery so as to increase their
productive
capabilities. The funding requirement for this undertaking shall be
included
in the annual budget of the Department of Agriculture.
CHAPTER
VI
WATER
MANAGEMENT AND IRRIGATION FACILITIES
Sec.
19. Water Management. — The Government
shall provide adequate support services that will address the
development,
management and conservation of water resources. The Department of
Public
Works and Highways, through the National Irrigation Administration and
the Department of Agriculture, and with the participation of farmers'
organizations,
shall undertake the implementation of small water impounding projects
which
can provide supplemental irrigation and additional income from fish and
duck raising, and at the same time minimize soil erosion, siltation and
flooding. Training programs for small farmers on these subjects shall
be
provided.
Focus
shall also be made on small irrigation systems which are more
efficient,
cost-effective and cheaper to establish. The design and construction of
irrigation systems shall be based not only on economic rate of return
but
also on the sustainable use of these systems. Inefficient and
underutilized
irrigation systems shall be rehabilitated, improved and maintained.
To
enhance the compatibility of environmental protection with sustained
agricultural
productivity, the Department of Environment and Natural Resources shall
adopt measures to promote conservation practices such as reforestation,
watershed management, antipollution programs and other similar
measures.
In addition, the Department of Agriculture shall implement specific
measures
to ensure that farming practices are not detrimental to the environment.
To
ensure the protection of watersheds and availability of irrigation
services
in rainfed and upland farms, the Department of Environment and Natural
Resources shall, in collaboration with local government units, strictly
enforce conservation measures and provide for the restoration of the
protective
forest cover and stability of the country's critical watersheds.
Farmer-beneficiaries
shall be organized into irrigators' associations which shall be tapped
by the Department of Environment and Natural Resources to implement its
community-based reforestation projects, particularly the development
and
management of watershed of the irrigation projects. To ensure the
integration
of irrigation delivery systems with other agriculture support services,
there shall be close coordination among the National Irrigation
Administration,
the Department of Agriculture, and the Department of Environment and
Natural
Resources through the local development councils.
The
Bureau of Soils and Water Management shall prepare for each barangay,
municipality
or city which is predominantly agriculture-based parcellary maps
identifying
agricultural lands which can be reached by irrigation systems. In order
to ensure the availability of irrigation services in areas with
production
potential, the Government shall implement irrigation pump distribution
programs particularly in areas predominantly populated by small farmers.chanrobles virtuallaw libraryred
Sec.
20. Access to Irrigation Services.
— While the Government, through the National Irrigation Administration
(NIA) and other concerned offices, continues to provide irrigation
services,
farmers' organizations shall be encouraged to spearhead the
construction
of irrigation systems. Towards this end, the Government shall encourage
small farmers to join or form irrigators' associations. In addition, it
shall promote participation of farmers to develop their capabilities to
eventually assume the operation and maintenance of irrigation systems
and
the responsibility of collecting fees from the individual members and
remitting
an amount to the NIA.
The
NIA shall undertake the development and institutionalization of
second-crop
irrigation facilities in support of multi-crop farming. It shall also
devise
schemes for small farmers to avail of electric pumps or diesel-powered
deep well irrigation systems in barangays or communities where water is
scarce.
CHAPTER
VII
AGRICULTURAL
CREDIT
Sec.
21. Rural Credit Delivery System.
— An efficient credit delivery system guided by a sound rural credit
policy
geared towards the needs of small farmers shall be established. The
features
of the credit delivery system for small farmers shall include, among
others,
a maximum rate of interest not to exceed seventy-five percent (75%) of
commercial rate per annum inclusive all service, penalty and other
charges.
It shall also include minimum collateral requirements, accessibility,
reasonable
repayment terms, expeditious loan documentation and processing
procedures.
Services shall be expanded to include not only loans for procurement of
production inputs but also for other needs and purposes of small
farmers
such as education and health needs.
The
Department of Agriculture, through the Agricultural Credit Policy
Council
(ACPC) and other concerned agencies, shall give subsidies for the
education
and training of small farmers on credit awareness, loan acquisition and
loan repayment. It shall conduct an intensive information drive that
will
promote the establishment of strong and viable farmers' organizations
such
as cooperatives, credit unions, rotating savings, and credit
associations
and non-government organizations (NGO's) which play a major role in
increasing
small farmers' access to credit. Likewise, the Government shall also
set
up a system which will provide information on the credit worthiness of
potential borrowers.
In
order to reduce the risks and administrative costs of lending
institutions,
the Government shall expand its loan guarantee coverage under the
Comprehensive
Agricultural Loan Fund to be administered by the ACPC and crop
insurance
programs to cover not only rice and corn but other crops, livestock,
poultry,
fishery, and agro-forestry as well. The ACPC shall conduct special
projects
to promote innovative financing schemes for small farmers. Payments
under
such insurance program shall be prompt and any delay without just cause
shall entitle the beneficiary to reasonable interest rate on the amount
due.
In
addition, the Government shall promote the development of farmers'
organizations.
Toward this end, the Government, through the ACPC and other concerned
agencies,
shall subsidize costs of information dissemination, monitoring,
training
and registration. The farmers' organizations may serve as conduits of
rural
banks, private development banks and other banks for effective
agricultural
credit delivery. An amount shall be earmarked for lending exclusively
farmers'
cooperatives at subsidized interest rates.
All
agricultural lending programs of the Government are hereby consolidated
and placed under the administration of the Land Bank of the
Philippines.
The funds shall be augmented by annual budgetary allocations which
shall
be managed as a self-sustaining fund base by the Land Bank of the
Philippines
in coordination with the ACPC.
A
portion of all loanable agricultural funds shall be utilized for direct
lending to small farmers for their production, processing, postharvest
and marketing requirements.
To
be able to generate funds that will be used to cover for the
administrative
costs of the agricultural funds being handled by the Land Bank of the
Philippines,
all government agencies that are involved in the development of the
small
farmers shall be allowed the option to deposit their funds in the Land
Bank of the Philippines.chanrobles virtuallaw libraryred
Sec.
22. Cooperative Banks. — Small
farmers shall have access to reasonable credit/loan package. The
Government
shall promote the establishment of cooperative banks and promote the
growth
of networks of cooperative banks.
CHAPTER
VIII
WAGE,
INCENTIVES AND PRICE SUPPORT
Sec.
23. Incentives. — Small farmers,
including agricultural share tenants and lessees, regular and seasonal
farmworkers and beneficiaries under the Comprehensive Agrarian Reform
Law
(CARL), shall be entitled to the following privileges or incentives:
(1) Financial
and technical assistance shall be awarded to deserving farmers'
organizations
implementing livelihood projects. Concerned national offices or
agencies
shall assist them in locating markets for their produce and by
providing
other support services necessary for the success of their projects;(2) Barangay,
municipal or provincial officials shall assist their respective
communities
to make the necessary representations before the appropriate government
agencies in seeking assistance for agro-based projects. They shall be
encouraged
to support farmers to set up site specific agro-based projects that
shall
be operated in a business-like manner;
(3) The
Department of Agriculture and other concerned agencies shall promote
investment
and financing programs designed to channel financial resources to
livelihood
projects in the countryside;
(4) Preferential
tariff terms shall be extended on farm inputs and spare parts, farm
machinery
and equipment imported by farmers' organizations provided that these
are
specifically for their projects;
(5) The
Government shall give incentives and recognition to farmers and
farmers'
organizations adopting more efficient farm technologies or equipment
resulting
in increased productivity and income;
(6) The
Government shall widen the scope of the existing crop and livestock
insurance
programs by providing an insurance scheme that can accommodate major
crops,
livestock and other produce of small farmers;
(7) Study
tours of short duration, local or overseas, shall be provided to
deserving
small farmers to improve their technological competence and knowledge;
(8) A
system of certification of farm skills shall be instituted by the
Department
of Agriculture through duly authorized institutions to upgrade the
skills
of farmers and farmworkers;
(9) Farmers'
insurance coverage by the Social Security System subject to its charter
shall be extended to small farmers and farmworkers; and
(10) Importations
shall not be allowed on agricultural products that are produced locally
in sufficient quantity. Importation policies should include the
protection
of new and developing crops such as soybean, ramie, sorghum and wheat.
Importation policies shall be reviewed periodically by the Government
in
consultation with farmers' organizations.
Sec.
24. Income-generating Activities.
— Small farmers shall be encouraged to engage in other
income-generating
activities to supplement their farm income. National agencies, in
collaboration
with local government units, shall provide technical and skills
training
assistance through farmers' organizations, and shall also be tasked to
provide marketing assistance to small farmers.
Farmers'
organizations shall be the main conduits for funding livelihood
projects.
Assistance to livelihood projects shall include identification of
specific
markets and facilitating access to market facilities. The Government
shall
also provide other support services necessary for the success of
livelihood
projects. Priority shall be given to demand-pulled production
activities.
Sec.
25. Price Support. — The Department
of Agriculture, through its appropriate agencies, shall establish a
price
support system for certain agricultural products, especially rice and
corn,
taking into consideration the need to increase the real income of small
farmers: Provided, however, That the price support established
shall
not result in the increase of the retail prices of such products beyond
the paying capacity of the average consumer: Provided, further,
That the Government shall also endeavor to set farmgate prices that
respond
to the changing economic conditions.
In
addition, the Government shall minimize importation of farm inputs
which
are being developed locally, such as fertilizers and seeds, except at
times
of calamities or emergencies.chanrobles virtuallaw libraryred
Sec.
26. Minimum Wage. — Rural workers
including regular farmworkers shall be entitled to wage levels
prescribed
by the Regional Tripartite Wages and Productivity Board pursuant to
Republic
Act Numbered Sixty-seven hundred and twenty-seven. Contract workers or
seasonal farmworkers shall also be entitled to minimum wages unless
they
receive higher wages under the terms of their contracts.
Sec.
27. Procurement of Agricultural
Produce. — The National Food Authority or any other appropriate agency
of the Department of Agriculture which implements the government price
support for agricultural produce, especially rice and corn, shall only
procure and purchase palay, corn or other agricultural produce directly
from small farmers or farmers' organizations. Such agency shall devise
an effective procurement scheme to ensure that small farmers can avail
of this benefit.
Any
official or employee of such agency who allows, consorts or connives
with
any trader or nonfarmer in the purchase of rice, corn or other
agricultural
produce or inputs subject to price support or any other government
subsidy
which is intended exclusively to benefit small farmers, shall be
punished
by a fine of not less than Ten thousand pesos (P10,000.00) or by
imprisonment
for a term of not less than two (2) years but not more than four (4)
years,
or both at the discretion of the court, without prejudice to
administrative
sanctions imposed by the subject agency with perpetual disqualification
to hold public office. The Probation Law shall not apply to penalties
imposed
under this Act.
Authentic
copies of any evidence of procurement or purchase ofpalay,
corn and other agricultural produce enjoying price support as provided
in this section shall, within thirty (30) days from the issuance
thereof,
be furnished the Bureau of Internal Revenue by the National Food
Authority
or any other agency of the Government implementing price support
therefor,
subject to the penalties provided in the preceding paragraph for
violation
thereof.
The
penalties provided under this section shall likewise apply to any
official
or employee of the National Food Authority or to any such similar
agency
of the Government who consorts or connives with any trader or nonfarmer
in the sale of rice, corn or other agricultural produce sold under any
government program.
CHAPTER
IX
RESEARCH
AND EXTENSION SERVICES
Sec.
28. Research and Development
System. — The R and D System shall conduct mission-oriented or
strategic
research and adaptation trials taking into consideration specific needs
of the intended beneficiaries. The results of these adaptation trials
shall
be verified under actual farm conditions to determine their performance
in comparison with existing farming systems.
The
R and D System shall complement national research centers by
contributing
studies or actual data to such studies. It shall concentrate on
addressing
the problems faced by farmers at the local level. The R and D System
shall
also tap the knowledge or experience of the farmers in the area and,
through
proper assessment and development, synthesize such with the present
stock
data.
The
Philippine Council for Agriculture and Resources Research and
Development
shall be the lead agency to strengthen the existing R and D System in
coordination
with the Bureau of Agricultural Research, the Philippine Rice Research
Institute and other government research institutions, private research
institutions; state colleges and universities; and the farmers'
organizations
in the area.
Sec.
29. Demonstration Farms. — Technology
verification and piloting shall be conducted by the farmers'
organizations
on the farmers' fields under the supervision of the R and D personnel.
These demonstration farms shall showcase technologies that have passed
regional adaptability tests.
Emphasis
shall be given on the ease of application of the concept/technique, the
use of indigenous technology and materials, resource conservation, the
increase in productivity and income of the farmers and other similar
considerations;
Sec.
30. Focus on Research, Training
and Extension. — Research, training and extension shall focus on the
development
and transfer of adaptive technologies that provide solutions to
problems
encountered by the small farmers in the areas of production,
postharvest
and processing, marketing, entrepreneurship and management, and
community
organizing and institutional development.
Sec.
31. Studies on Soil Types and
Climatic Conditions. — The Bureau of Soils and Water Management (BSWM)
and other concerned agencies shall conduct studies in the
municipalities
and provinces in order to determine the best use of the land, the most
profitable cropping mix, and the fertilizers needed for such areas and
crops. The BSWM shall likewise determine the soil management practices
suitable for the areas to ensure sustainability of farming in these
areas.chanrobles virtuallaw libraryred
Sec.
32. Extension Services. — The
extension workers of the Department of Agriculture shall serve as
linkages
between the small farmers and farmers' organizations. Together, they
shall
identify on-farm problems to be referred to the research and
development
institutions. They shall likewise disseminate tested location-specific
technologies to their farmer clientele. The farmers' organization shall
complement the extension program of the Department of Agriculture for
more
effective technology transfer and information dissemination.
Sec.
33. Agro-industrial Linkages.
— The Department of Trade and Industry and the Department of
Agriculture
shall jointly devise a program that will increase the linkage between
agriculture
and industries, especially those in industrial estates, through the
promotion
of processing industries in order to develop a sound agri-based
industrial
development of rural communities.
CHAPTER
X
FINAL
PROVISIONS
Sec.
34. Appropriations. — The amounts
necessary to carry out the provisions of this Act are hereby authorized
to be appropriated in the General Appropriations Act of the year
following
its enactment into law. Other funding sources like the Philippine Aid
Plan
may also be tapped for the purpose.
Sec.
35. Implementing Guidelines.
— Within sixty (60) days from the effectivity of this Act, the
Department
of Agriculture shall issue the necessary rules and regulations to
implement
this Act.
Sec.
36. Repealing Clause. — All laws,
decrees, executive orders, administrative orders, rules and regulations
or parts thereof inconsistent with the provisions of this Act are
hereby
repealed or modified accordingly: Provided, however, That
nothing
in this Act shall amend, modify or repeal the provisions of Republic
Act Numbered Seventy-one hundred sixty, otherwise known as the Local
Government
Code of 1991.
Sec.
37. Separability Clause. — In
case any provision of this Act or any portion thereof is declared
unconstitutional
by a competent court, other provisions shall not be affected thereby.
Sec.
38. Effectivity Clause. — This
Act shall take effect fifteen (15) days after its publication in the
Official
Gazette or in two (2) newspapers of general circulation.
Approved:
June
4, 1992
Back
to Top - Back
to Main Index - Back
to Home
Copyright©1998-2006 by
ChanRobles
Publishing Company
All Rights Reserved
Since 19.07.98