ACT NO. 8435
MODERNIZATION ACT OF 1997
An Act Prescribing
Urgent Related Measures to Modernize the Agriculture and Fisheries
of the Country in Order to Enhance Their Profitability, and Prepare
Sectors for the Challenges of the Globalization Through an Adequate,
and Rational Delivery of Necessary Support Services, Appropriating
Therefor and For Other Purposes.
Section 1. Short Title.
- This act shall be known as the "Agriculture and Fisheries
Act of 1997."
Sec. 2. Declaration of
Policy. - The goals of the national economy are more equitable
of opportunities, income and wealth; a sustained increase in the amount
of goods and services produced by the nation for the benefit of the
and an expanding productivity as the key to raising the quality of life
for all, especially the underprivileged.
The State shall promote industrialization
and full employment based on sound agricultural development and
reform, through industries that make full and efficient use of human
natural resources, and which are competitive in both domestic and
markets. In pursuit of these goals, all sectors of the economy and all
regions of the country shall be given optimum opportunity to develop.
enterprises, including corporations, cooperatives, and similar
organizations, shall be encouraged to broaden the base of their
Thus, it is hereby declared
the policy of the State to enable those who belong to the agriculture
fisheries sectors to participate and share in the fruits of development
and growth in a manner that utilizes the nations resources in the most
efficient and sustainable way possible by establishing a more equitable
access to assets, income, basic and support services and infrastructure.
The State shall promote food
security, including sufficiency in our staple food, namely rice and
corn. The production of rice and white corn shall be optimized to meet
our local consumption and shall be given adequate support by the State.
The State shall adopt the
market approach in assisting the agriculture and fisheries sectors
recognizing the contribution of the said sector to food security,
protection, and balanced urban and rural development, without
the welfare of the consumers, especially the lower income groups. The
shall promote market-oriented policies in agricultural production to
farmers to shift to more profitable crops.
The state shall empower the
agricultural and fisheries sector to develop and sustain themselves.
this end,the State shall unsure the development of the agriculture and
fisheries sectors in accordance with the following principles:
and Social Equity. - The State shall ensure that the poorer sectors
of society have equitable access to resources, income opportunities,
and support services and infrastructure especially in areas where
is low as a means of improving their quality of life compared with
sectors of society;
Sec. 3. Statement
Objectives. - This Act shall have the following objectives:
The State shall assure the availability, adequacy, accessibility of
supplies to all at all times;
- The State shall adopt a rational approach in the allocation of public
investments in agriculture and fisheries in order to assure efficiency
and effectiveness in the use of scarce resources and thus obtain
returns on its investments;
- The State shall enhance the competitiveness of the agriculture and
sectors in both domestic and foreign markets;
- The State shall promote development that is compatible with the
of the ecosystem in areas where agriculture and fisheries activities
carried out. The State should exert care and judicious use of the
natural resources in order to attain long-term sustainability;
- The State shall promote people empowerment by enabling all citizens
direct participation or through their duly elected, chosen or
representatives the opportunity to participate in policy formulation
decision-making by establishing the appropriate mechanisms and by
them access to information; and
Competition. - The State shall protect small farmers and fisher
from unfair competition such as monopolistic and oligopolistic
by promoting a policy environment that provides them priority access to
credit and strengthened cooperative-based marketing system.
the agriculture and fisheries sectors by transforming these sectors
a resource-based to a technology-based industry;
Sec. 4. Definition
incomes in the agriculture and fisheries sectors, particularly the
farmers and fisherfolk, by ensuring equitable access to assets,
and services, and promoting higher-value crops, value-added processing,
agribusiness activities, and agro-industrialization;
availability and stable supply of food to all at all times;
and vertical integration, consolidation and expansion of agriculture
fisheries activities, group functions and other services through the
of cooperatives, farmers' and fisherfolk's associations, corporations,
nucleus estates, and consolidated farms and to enable these entities to
benefit from economies of scale, afford them a stronger negotiating
pursue more focused, efficient and appropriate research and development
efforts and enable them to hire professional managers;
by strengthening people's organizations, cooperatives and NGO's and by
establishing and improving mechanisms and resources for their
in government decision-making and implementation;
approach to enhance the comparative advantage of our agriculture and
sectors in the world market;
and fisheries sectors to ascend continuously the value-added ladder by
subjecting their traditional or new products to further processing in
to minimize the marketing of raw, unfinished or unprocessed products;
will promote industry dispersal and rural industrialization by
incentives to local and foreign investors to establish industries that
have backward linkages to the country's agriculture and fisheries
economic adjustment measures that increase productivity and improve
efficiency while ensuring the protection and preservation of the
and equity for small farmers and fisherfolk; and
of life of all sectors.
"Agrarian Reform Community"
is a barangay at the minimum or a cluster of contiguous barangays where
there is a critical mass of farmers or farm workers and which features
the main thrust of agrarian development land tenure improvement and
delivery of support services.
"Agricultural Lands" refers
to lands devoted to or suitable for the cultivation of the soil,
of crops, growing of trees, raising of livestock, poultry, fish or
production, including the harvesting of such farm products, and other
activities and practices performed in conjunction with such farming
by persons whether natural or juridical and not classified by the law
mineral land, forest land, residential land, commercial land, or
"Agricultural Land Use Conversion"
refers to the process of changing the use of agricultural land to
"Agricultural Sector" is
the sector engaged in the cultivation of the soil, planting of crops,
of fruit trees, raising of livestock, poultry, or fish, including the
and marketing off such farm products, and other farm activities and
is the development, adoption, manufacture and application of
location-specific, and cost-effective agricultural technology using
animal, mechanical, electrical and other non-conventional sources of
for agricultural production and post-harvest operations consistent with
agronomic conditions and for efficient and economic farm management.
"Agriculture and Fisheries
Modernization" is the process of transforming the agriculture and
sectors into one that is dynamic, technologically advanced and
yet centered on human development guided by the sound practices of
and the principles of social justice.
refers to the processing of raw agricultural and fishery products into
semi-processed or finished products which include materials for the
for food and/or non-food products, pharmaceuticals and other industrial
"Banks", collective used,
means government banks and private banks, rural banks and cooperative
"Basic Needs Approach to
Development" involves the identification, production and marketing of
goods and services for consumption of rural communities.
"Communal Irrigation System
(CIS)" is an irrigation system that is managed by a bona fide
"Competitive Advantage" refers
to competitive edge in terms of product quality and/or price. It
refer to the ability to produce a product with the greatest relative
in the use of resources.
"Cooperatives" refers to
duly registered associations of persons with a common bond of interest
who have voluntarily joined together to achieve a lawful common social
and economic end, making equitable contributions to the capital
and accepting a fair share of the risks and benefits of the undertaking
in accordance with universally accepted cooperatives principles.
"Department" refers to the
Department of Agriculture.
"Economic Scale " refers
to the minimum quantity of volume of goods required to be efficient.
"Economies of Scale"refers
to the decrease in unit cost as more units are produced due to the
out of fixed costs over a greater number of units produced.
"Empowerment" involves providing
authority, responsibility and information to people directly engaged in
agriculture and fishery production, primarily at the level of the
fisher folk and those engaged in food and non-food production and
in order to give them wider choices and enable them to take advantage
the benefits of the agriculture and fishery industries.
"Extension Services" refers
to the provision of training, information, and support services by the
government and non-government organizations to the agriculture and
sectors to improve the technical, business, and social capabilities of
farmers and fisher folk.
"Farmer's and Fisherfolk's
Organizations or Associations" refer to farmers and fisherfolks
associations or corporations duly registered with appropriate
agencies and which are composed primarily of small agricultural
farmers, farm, workers, agrarian reform beneficiaries, fisher folk who
voluntarily join together to form business enterprises or non-business
organizations which they themselves own, control and patronize.
"Farm-to-Market Roads" refer
to roads linking the agriculture and fisheries production sites,
landing points and post-harvest facilities to the market and arterial
"Fisheries" refers to all
systems or networks of interrelated activities which include the
growing, harvesting, processing, marketing, developing, conserving, and
managing of all aquatic resources and fisheries areas.
"Fisheries Sector" is the
sector engaged in the production, growing, harvesting, processing,
developing, conserving, and managing of aquatic resources and fisheries
"Fishing" refers to the application
of techniques using various gear in catching fish and other fisheries
"Fishing Grounds" refers
to areas in any body of water where fish and other aquatic resources
and become target of capture.
"Food Security" refers to
the policy objective, plan and strategy of meeting the food
of the present and future generations of Filipinos in substantial
ensuring the availability and affordability of food to all, either
local production or importation, of both, based on the country's
and potential resource endowment and related production advantages, and
consistent with the over all national development objectives and
However, sufficiency in rice and white corn should be pursued.
"Fresh Agricultural And Fishery
Products" refers to agricultural and fisheries products newly taken or
captured directly from its natural state or habitat, or those newly
or gathered from agricultural areas or bodies of water used for
refers to the ability to compete in terms of price, quality and value
agriculture and fishery products relative to those of other countries.
"Gross Value-Added" refers
to the total value, excluding the value of non-agricultural of fishery
intermediate inputs, of goods and services contributed by the
and fisheries sectors.
"Head works" refers to the
composite parts of the irrigation system that divert water from natural
bodies of water such as river, streams, and lakes.
"Industrial Dispersal" refers
to the encouragement given to manufacturing enterprises to establish
plants in rural areas. Such firms normally use agricultural raw
either in their primary or intermediate state.
"Irrigable Lands" refers
to lands which display marked characteristics justifying the operation
of an irrigation system.
"Irrigated Lands" refers
to lands services by natural irrigation or irrigation facilities. These
include lands where water is not readily available as existing
facilities need rehabilitation or upgrading or where irrigation water
not available year-round.
"Irrigation System" refers
to a system of irrigation facilities covering contiguous areas.
(IA)" refers to an association of farmers within a contiguous area
by a National Irrigation System or Communal Irrigation System.
"Land Use" refers to the
manner of utilizing the land, including its allocation, development and
"Land Use Plan" refers to
a document embodying a set of policies accompanied by maps and similar
illustrations which represent the community-deserved pattern of
distribution and a proposal for the future allocation of land to the
land-using activities, in accordance with the social and economic
of the people. It identifies the location, character and extent of the
area's land resources to be used for different purposes and includes
process and the criteria employed in the determination of the land use.
"Land Use Planning" refers
to the act of defining the allocation, utilization, development and
of all lands within a given territory or jurisdiction according to the
inherent qualities of the land itself and supportive of sustainable,
demographic, socio-cultural and environmental objectives as an aid to
"Main Canal" refers to the
channel where diverted water from a source flows to the intended area
"Market Infrastructure" refers
to facilities including, but not limited to, market buildings,
holding pens, warehouses, market information centers, connecting roads,
transport and communication and cold storage used by the farmers and
folk in marketing their produce.
"National Information Network
(NIN)" refers to an information network which links all offices and
of the Department with various research institutions and local
providing easy access to information and marketing services related to
agriculture and fisheries.
"National Irrigation System
(NIS)" refers to a major irrigation system managed by the National
"Network of Protected Areas
for Agricultural and Agro-industrial Development (NPAAD)" refers to
areas identified by the Department through the Bureau of Soils and
Management in coordination with the National Mapping and Resources
Authority in order to ensure the efficient utilization of land for
and Agro-industrial development and promote sustainable growth . The
covers all irrigated areas, all irrigable lands already covered by
projects with firm funding commitments; all alluvial plain land highly
suitable for agriculture whether irrigated or not; Agro-industrial crop
lands or lands presently planted to industrial crops that support the
of existing agricultural infrastructure and agro-based enterprises,
areas located at an elevation of five hundred (500) meters or above and
have the potential for growing semi temperate and high-value crops; all
agricultural lands that are ecological fragile, the conversion of which
will result in serious environmental degradation, and mangrove areas
"On-Farm Irrigation Facilities"
refers to composite facilities that permit entry of water to paddy
and consist of farm ditches and turnouts.
"Primary Processing" refers
to the physical alteration of raw agricultural or fishery products with
or without the use of mechanical facilities.
includes, but is not limited to , threshing, drying, milling, grading ,
storing, and handling of produce and such other activities as
winnowing, chipping and washing.
"Post -Harvest Facilities"
includes, but it is not limited to, threshers, moisture meters, dryers,
weighing scales, milling equipment, fish ports, fish landings, ice
and cold storage facilities, processing plants, warehouses, buying
market infrastructure and transportation.
" Premature Conversion of
Agricultural Land" refers to the undertaking of any development
the results of which modify or alter the physical characteristics of
agricultural lands to render them suitable for non-agricultural
without an approved order of conversion from the DAR.
" Resource Accounting" refers
to a tracking changes in the environment and natural resources
and economically (in monitory terms)
"Resource-based" refers to
the utilization of natural resources.
refers to the process by which the economy is transformed from one that
is predominantly agricultural to one that is dominantly industrial and
service-oriented. Agriculture provides the impetus and push for
and services through the market that it creates, the labor that it
and the income that it generates which is channeled to industry and
As development continues, with agriculture still an important sector,
and services begin to generate income and markets and concomitantly
their share of total income.
"Strategic Agriculture and
Fisheries Development Zones (SAFDZ)" refers to the areas within the
identified for production, Agro-Processing and marketing activities to
help develop and modernize, either the support of government, the
and fisheries sectors in an environmentally and socio-cultural sound
"Secondary Canal" refers
to the channel connected to the main canal which distributes irrigation
to specific areas.
"Secondary Processing" refers
to the physical transformation of semi-processed agricultural or
"Shallow Tube Well (STW)"
refers to a tube or shaft vertically set into the ground for the
of bringing ground water to the soil surface from a depth of less than
20 meters by suction lifting.
"Small Farmers and Fisherfolk"
refers to natural person dependent on small-scale subsistence farming
fishing activities as their primary source of income.
"Small and Medium Enterprise
(SME)" refers to any business activity or enterprise engaged in
agribusiness and/or services, whether single proprietorship,
partnership or corporation whose total assets, inclusive of those
from loans but exclusive of the land on which the particular business
office, plan and equipment are situated, must have value falling under
the following categories:
than P 1,500,000
with the Congressional Oversight Committee on Agricultural and
Modernization, may adjust the above values as deemed necessary.
Small - P
P15,000,001 to P
means the consideration of the social structure of the community such
leadership pattern, distribution of roles across gender and age groups,
the diversity of religion and other spiritual beliefs, ethnicity and
diversity of the population.
to utilization of technology.
"Zoning Ordinance" refers
to a local legislation approving the development land use plan and
for the regulations and other conditions on the uses of land including
the limitation of the infrastructure that may be placed within the
jurisdiction of a city or municipality.
and Fisheries Development Zones
Sec. 5. Declaration of
Policy. - It is the policy of the State to ensure that all sectors
of the economy and all regions of the country shall be given optimum
to develop through the rational and sustainable use of resources
to each area in order to maximize agricultural productivity, promote
and equity and accelerate the modernization of the agriculture and
sectors of the country.
Sec. 6. Network of Areas
for Agricultural and Agro-Industrial Development. -The Department
within six (6) months after the approval of this Act, and in
wit the local government units , appropriate government agencies,
non-government organizations (NGOs)and organized farmers' and
groups, identify the strategic Agriculture and Fisheries Development
(SAFDZ) within the network of protected areas for agricultural and
development to ensure that lands are efficiently and sustainably
for food and non-food production and agro-industrialization.
The SAFDZ which shall serve
as centers where development in the agriculture and fisheries sectors
catalyzed in an environmentally and socio-cultural sound manner, shall
be identified on the basis of the following criteria
a. Agro-climatic and environmental
conditions giving the area as competitive advantage in the cultivation,
culture, production and processing of particular crops, animals and
b. Strategic location of
the area for the establishment of agriculture or fisheries
industrial complexness, production and processing zones;
c. Strategic location and
of the area for market development and market networking both at the
and international levels; and
d. Dominant presence of agrarian
reform communities (ARCs) and/or small owner-cultivators and amortizing
owners/agrarian reform beneficiaries and other small farmers and fisher
folk in the area.
The SAFDZ shall have an integrated
development plan consisting of production, processing, investment,
human resources and environmental protection components.
Sec. 7. Modern Farms.
- The Department in coordination with the local government units (LGUs)
and appropriate government agencies, may designate agrarian reform
(ARCs) and other areas within the SAFDZ suitable for economic scale
which will serve as model farms.
Farmer-landowners whose lands
are located within these designated areas shall be given the option to
enter into a management agreement with corporate entities with proven
in farm operations and management, high-end quality production and
through the use of up-to-date technology and collateral resources such
as skilled manpower, adequate capital and credit, and access to
consistent with the existing laws.
Sec. 8. Mapping. -
The Department, through the Bureau of Soils and Water Management
in coordination with the National Mapping and Resource Information
(NAMRIA) and the Housing and Land Use Regulatory Board (HLURB) shall
the mapping of network of areas for agricultural and agro-industrial
for all municipalities, cities and an appropriate scale. The BSWM may
on other agencies to provide technical and other logistical support in
this undertaking .
Sec. 9. Delineation of
Strategic Agriculture and Fisheries Development Zones. - The
in consultation with the Department of Agrarian Reform, the Department
of Trade and Industry, the Department of Environment and Natural
Department of Science and Technology, the concerned LGU's, the
farmers and fisher folk groups, the private sector and communities
without prejudice to the development of identified economic zones and
ports, establish and delineate based on sound resource accounting, the
SAFDZ within one (1) year from the effectivity of this Act.
All irrigated lands, irrigable
lands already covered by irrigation a projects with firm funding
and lands with existing or having the potential for growing high-value
crops so delineated and included within the SAFDZ shall not be
for a period of five (5) years front the effectivity for this Act: Provided,
however, That not more than five percent (5%) of the said lands
within the SAFDZ may be converted upon compliance with existing laws,
regulations, executive order and issuances, and administrative orders
to land use conversion: Provided, further, That thereafter 1) a
review of the SAFDZ, specifically of the productivity of the areas,
of the quality of life of farmers and fisher folk, and efficiency and
of the support services shall be conducted by the Department and the
of Agrarian Reform, in coordination with the Congressional Oversight
on Agricultural Committee and Fisheries Modernization; 2) conversion
be allowed, if at all, on a case-to-case basis subject to existing
rules, regulations, executive orders and issuances, and administrative
orders governing land use conversion; 3) in case of conversion, the
owners will pay the Department the amount equivalent to the
investment cost including inflation.
Sec. 10. Preparation of
Land Use and Zoning Ordinance. - Within one (1) year from the
of the SAFDZ, in every city and municipality, all cities and
shall have prepared their respective land use and zoning ordinance
the SAFDZ, where applicable. Thereafter, all land use plans and zoning
ordinances shall be updated every four (4) years or as often as may be
deemed necessary upon the recommendation of the Housing and Land Use
Board and must be completed within the first year of the term of office
of the mayor. If the cities/municipalities fail to comply with the
of zoning and land use plans, the DILG shall impose the penalty as
for under Republic Act No.7160
Sec. 11. Penalty for Agricultural
Inactivity and Premature Conversion. - Any person or juridical
who knowingly or deliberately causes any irrigated agricultural lands
(7) hectares or larger, whether contiguous for not, within the
areas for agricultural development, as specified under Section 6 in
to Section 9 of this Act, to lie idle and unproductive for a period
one (1) year, unless due to force majeure, shall be subject to an idle
land tax of Three Thousand Pesos (P3,000.00) per hectare per year. In
the violator, shall be required to put back such lands to productive
use. Should the continued agricultural inactivity, unless due to force
majeure, exceed a period of two (2) years, the land shall be subject to
Any person found guilty of
premature or illegal conversion shall be penalized with imprisonment of
two (2) to six (6) years, or a fine equivalent to one hundred percent
of the government's investment cost, or both, at the discretion of the
court, and an accessory penalty of forfeiture of the land and any
In addition, the DAR may
impose the following penalties, after determining, in an administrative
proceedings, that violation of this law has been committed:
withdrawal of the authorization for land use conversion; and
Areas. - All watersheds that are sources of water for existing and
potential irrigable areas and recharge areas of major aquifers
by the Department of Agriculture and the Department of Environment and
Natural resources shall be preserves as such at all times.
disapproval of pending and subsequent conversion applications that they
may file with the DAR.
Sec. 13. Agriculture and
Fisheries Modernization Plan (AFMP). - The Department, in
with the farmers and fisher folk, the private sector, NGOs, people's
and the appropriate government agencies and offices, shall formulate
implement a medium- and long-term comprehensive Agriculture and
The Agriculture and Fisheries
Modernization Plan shall focus on five (5) major concerns:
Sec. 14. Food
Poverty Alleviation, Social Equity and Income Enhancement. - The
in coordination with other concerned departments or agencies, shall
medium-and long-term plans addressing food security, poverty
social equity and income enhancement concerns based on, but not limited
to, the following goals and indicators for development:
profitability, especially for farmers and fisher folk;
and profit of small farmers and fisherfolk;
Sec. 15. Global
and Sustainability. - The Department shall formulate
plans aimed at enhancing the global competitiveness and sustainability
of the country in agriculture and fisheries based on, but not limited
the following goals and indicators for development:
other staple foods at affordable process;
and income inequality;
Reduction of the
and underemployment; and
of small farmers.
volume, quality and value of agriculture and fisheries production for
consumption and for exports;
Sec. 16. Global
- The Department, in coordination with the Philippine Atmospheric,
and Astronomical Service Administration (P. A. G. A. S. A.) and such
appropriate government agencies, shall devise a method of regularly
and considering the effect of global climate changes, weather
and annual productivity cycles for the purpose of forecasting and
agriculture and fisheries production programs.
Increase in the
and quality of processed agricultural and fishery products;
Increase in the
of international trading partners in agriculture and fishery products;
Increase in the
of sustainable agriculture and fisheries firms engaged in domestic
processing, marketing and export activities;
Increase in and
level of entrepreneurship among farmers and fisher folk in the area;
Increase in the
of farms engaged in diversified farming; and
Reduced use of
that are harmful to health and the environment.
Sec. 17. Special Concerns.
- The Department shall consider the following areas of concerns, among
other in formulating the AFMP:
programs aimed to achieve growth and profitability targets in the
of the constraints and challenges of the World Trade Organization (WTO);
- The Department shall develop the capability of monitoring the AFMP
a Program Benefit Monitoring and Evaluation System (PBMES). In
it can secure the services of independent consultants and external
in order to assess its over-all impact. The Department shall make
reports to the Congressional Oversight Committee on Agriculture and
the implementation of the Agrarian Reform Program;
support for the SAFDZ;
to make agriculture and fisheries production inputs, information and
readily available to farmers, fisherfolk, cooperatives and
farmers and fisher folk, and agricultural graduates;
agriculture and fisheries research, development and extension services;
genetic materials and the environment;
against environmental threats to agriculture and fisheries;
by fisher folk;
the impoverished sectors of society who will be affected by
Sec. 19. Role of Other
Agencies. - All units and agencies of the government shall support
the Department in the implementation of the AFMP.
In particular, the Department
of Public Works and Highways shall coordinate with the Department with
respect to the infrastructure support aspect of the plan order to
networking of related infrastructure facilities.
The Department of Interior
and Local Government shall provide assistance to the Department in
resources under the control of local government units.
The Department of Trade and
Industry, Agrarian Reform, Science and Technology, and Environment and
Natural Resources shall coordinate their investment programs and
to complement the Department's implementation of the AFMP.
The Department of Education,
Culture and Sports, the Technical Educational and Skills Development
the Department of Health with the Department of Social Services and
shall coordinate with the Department to determine the financial
of small farmers and fisherfolk to adjust to the effects of
as envisioned in the Agriculture and Fisheries Modernization Plan.
The departments referred
above shall be required to identify in their budget proposals the
intended for the improvement of the environmental and other conditions
affecting agriculture and fisheries.
shall also be coordinated by the Committees on Agriculture on both
to complement and enhance the programs and activities of the Department
in the implementation of the AFMP.
Sec.20. Declaration of
Policy. - It is hereby declared the policy of the State to
poverty and promote vigorous growth in the countryside through access
credit by small farmers, fisher folk, particularly the women involved
the production, processing and trading of agriculture and fisheries
and the small and medium scale enterprises (SMEs) and industries
in agriculture and fisheries.
Interest rates shall be determined
by market forces, provided that existing credit arrangements with
reform beneficiaries are not affected. Emphasis of the program shall be
on proper management and utilization.
In this regard, the State
enjoins the active participation of the banking sector and government
institutions in the rural financial system.
Sec. 21. Phase-out of
the Directed Credit Programs (DCPs) and Provision for the Agro-Industry
Modernization Credit and Financing Program (AMCPP). - The
shall implement existing DCPs; however, the Department shall, within a
period of four (4) years from the effectivity of this Act, phase-out
DCPs and deposit all its loanable funds including those under the
Agricultural Loan Fund (CALF) including new funds provided by this Act
for the AMCFP and transfer the management thereof to cooperative banks
, rural banks, government financial institutions and viable NGOs for
Agro-Industry Modernization Credit Financing Program (AMCFP). Interest
earnings of the said deposited loan funds shall be reverted to the
Sec.22. Coverage. -
An agriculture, fisheries and agrarian reform credit and financing
shall be designed for the use and benefit of farmers, fisher folk those
engaged in food and non-food production, processing and trading,
farmers'/fisherfolk's organization, and SMEs engaged in agriculture
referred to in this chapter as the "beneficiaries"
Sec. 23. Scope of the
Agro-Industry Modernization Credit and Financing Program (AMCFP). -
The Agro-Industry Modernization Credit and Financing Program shall
the packaging and delivery of various credit assistance programs for
fisheries production including possessing of fisheries and agri-based
and farm inputs;
Sec. 24. Review
of Land Bank of the Philippines Crop Insurance Corporation, Guarantee
For Small and Medium Enterprises, Quedan and Rural Credit Guarantee
Agricultural Credit Policy Council. - The Department of Finance
commission and independent review of the charters and the respective
of the Land Bank of the Philippines (LBP), Philippine Crop Insurance
(PCIC), Guarantee Fund for Small and Medium Enterprises (GFSME), Quedan
and Rural Credit Guarantee Corporation (Quendancor), and Agricultural
Policy Council (ACPC), and recommend policy changes and other measures
to induce the private sectors participation in lending to agriculture
to improve credit access by farmers and fisherfolk: Provided, That
and fisheries projects with long gestation period shall be entitled to
a longer grace period in repaying the loan based on the economic life
farm and fishery equipment and machinery;
fertilizer, poultry, livestock, feeds and other similar items;
and fisheries products for storage, trading , processing and
and installation of tube wells for irrigation;
and repair of facilities for production, processing , storage,
communication, marketing and such other facilities in support of
and fisheries graduates to enable them to engage in agriculture and
related economic activities;
which support soil and water conservation and ecology-enhancing
irrigation systems that are designed to protect the watershed;
guarantees on uncollaterized
loans to farmers and fisherfolks.
The Land Bank of the Philippines,
shall, in accordance with its original mandate, focus primarily on
and programs in relation to the financing of agrarian reform and the
of credit services to the agriculture and fisheries sectors, especially
to small farmers and fisherfolk.
The review shall start six
(6) months after the enactment of this Act. Thereafter, the review
make recommendations to the appropriate Congressional Committees for
legislative actions and to the Executive Branch for policy and program
changes within six (6) months after submission.
Sec. 25. Rationalization
of Credit Guarantee Schemes and Funds. - All existing credit
schemes and funds applicable to the agriculture and fishery sectors
be rationalized and consolidated into an Agriculture and Fisheries
Guarantee Fund. The rationalization shall cover the credit guarantee
and funds operated by the Quendancor, the GFSME and the Comprehensive
Loan Fund. The Agriculture and Fisheries Credit Guarantee Fund shall be
managed and implemented by the Quendancor Provided, That representation
to the Quendancor Board shall be granted to cooperatives, local
units and rural financial institutions; Provided, further, That credit
guarantee shall be given only to small-scale agriculture and fisheries
activities and to countryside micro-small, and medium enterprises. It
also cover loan guarantees for purchase orders and sales contracts.
The Agriculture and Fisheries
Credit Guarantee Fund shall be funded by at least ten percent (10%) of
the funding allocation for the AMCFP.
Sec. 26. Declaration of
Policy. - It is the policy of the State to use its natural
rationally and equitably. The state shall prevent the further
of watersheds, rehabilitate existing irrigation systems and promote the
development of irrigation systems that are effective, affordable,
In the choice of location-specific
irrigation projects, the economic principle of comparative advantage
always be adhered to.
Sec. 27. Research and
Development. - Irrigation Research and Development (R&D) shall
be pursued and priority shall be given to the development of effective,
appropriate , and efficient irrigation and water management
The Department shall coordinate
with the Department of Environment and Natural Resources concerning the
preservation and rehabilitation of watersheds to support the irrigation
Sec. 28. Criteria for
Selection of Irrigation Development Scheme. - The Selection of
scheme of irrigation development shall be location-specific and based
the following criteria:
in addition to the criteria enumerated above, be subjected to a social
cost per unit area;
and maintenance cost;
unit area productivity.
Sec. 29. Simplified Public
Bidding. - The construction, repair, rehabilitation, improvement,
maintenance of irrigation projects and facilities shall follow the
on Audit (COA) rules on simplified public bidding.
Irrigation projects undertaken
by farmers, farmer's organizations and other private entities whose
is partly or wholly acquired by way of loan from government financial
shall not be subject to the bidding requirements of the government.
Sec. 30. National Irrigation
Systems (NIS). - The National Irrigation Administration (NIA)
continue to plan, design, develop, rehabilitate, and improve the NISs.
It shall continue to maintain and operate the major irrigation
including the head works and main canals.
In addition, the NIA is mandated
to gradually turn over operation and maintenance of the National
System's secondary canals and on-farm facilities to Irrigators'
Sec. 31. Communal Irrigation
Systems (CIS). - The Department shall, within five (5) years from
effectivity of this Act, devolve the planning, design and management of
CISs, including the transfer of NIA's assets and resources in relation
to the CIS, to the LGUs. The budget for the development, construction,
operation and maintenance of the CIS and other types of irrigation
shall be prepared by and coursed through the LGUs. The NIA shall
to provide technical assistance to the LGUs even after complete
of the Irrigation Systems to the LGUs, as may be deemed necessary.
Sec. 32. Minor Irrigation
Schemes. - The Department shall formulate and develop a plan for
promotion of a private sector-led development of minor irrigation
such as Shallow Tube Wells (STWs), Low-Lift pumps (LLPs) and other
systems. the plan shall be included in the Short-term Agriculture and
Sec. 33. Other Irrigation
Construction Schemes. - The Government shall also encourage the
of irrigation facilities through other viable schemes for the
of irrigation such as build-operate-transfer, build-transfer and other
schemes that will fast-track the development of irrigation systems.
Sec. 34. Guarantee of
the National Government. - To make build-operate-transfer (BOT)
for irrigation attractive to proponents, the national government shall
issue the need payment guarantee for BOT projects which shall answer
default of the National Irrigation Administration. Such amounts needed
to answer for the payment guarantee is hereby to be appropriated.
Sec. 35. Irrigation Service
Fees (ISF). - Upon effectivity of this Act, the NIA shall
review the ISF rates and recommend to the Department reasonable rates
six (6) months from the effectivity of this Act.
Sec. 36. Monitoring and
Evaluation. - The Department shall monitor the implementation of
programs and irrigation projects. The Department shall review all
irrigation systems every four (4) years, to determine their viability
ineffectiveness. The Department shall employ the services of
evaluators to assess the overall impact of the country's irrigation
Sec. 37. Exemption from
Election Ban. - The repair, maintenance and rehabilitation of
facilities as well as BOT irrigation projects shall be exempted from
scope of the election ban on public works.
Sec. 38. Declaration of
Policy. - It is hereby declared the policy of the State to empower
Filipino farmers and fisherfolk, particularly the women, involved in
and fisheries through the provision of timely, accurate and responsive
business information and efficient trading services which will link
to profitable markets for their products. They shall likewise be given
innovative support toward the generation of maximum income through
Sec. 39. Coverage. -
A market information system shall be installed for the use and benefit
of, but not limited to, the farmers and fisher folk, cooperatives,
processors, the LGUs and the Department.
Sec. 40. The Marketing
Assistance System. - The Department shall establish a National
Assistance Program that will immediately lead to the creation of a
marketing umbrella in order to ensure the generation of the highest
income for the farmers and fisher folk or groups of farmers and fisher
folk, matching supply and demand in both domestic and foreign markets.
Sec. 41. National Information
Network. - A National Information Network (NIN) shall be set up
the Department level down to the regional, provincial and municipal
within one (1) year from the approval of this Act taking into account
information networks and seems.
The NIN shall likewise link
the various research institutions for easy access to data on
and fisheries research and technology. All departments, agencies,
research institutions, and local government units shall consolidate and
continuously update all relevant information and data on a periodic
and make such data available on the Internet.
Sec. 42. Information and
Marketing Service. - The NIN shall provide information and
services related to agriculture an fisheries which shall include the
- The Department shall provide technical assistance in setting -up the
NIN at the local level through the cooperatives and the LGUs Provided ,
That , at the local level, a system that will make marketing
and services related to agriculture and fisheries will be readily
in the city/municipal public market for the benefit of the producers,
both fresh and processed agricultural and fisheries projects;
limited to cooperatives, traders, key market centers, processors and
institutions concerned with agriculture and fisheries at the provincial
and municipal levels;
technology generated from research institutions involved in agriculture
and local market forecasts; and
Sec. 44. Role of Government
Agencies. - The Bureau of Agricultural Statistics will serve as the
central information server and will provide technical assistance to
in accessing and analyzing product and market information and
The Department of Transportation
and Communications shall provide technical and infrastructure
to the Department in setting up the NIN.
LGUs shall coordinate with
the Department for technical assistance in order to accelerate the
and training of information end-users in their respective jurisdictions.
The Cooperative Development
Authority shall coordinate with the Department for technical assistance
in order to provide training assistance to cooperatives in the use of
information and technology.
Sec. 45. Role of Private
Sector- The NIN shall likewise be accessible to the private sector
in agriculture and fisheries enterprises. The Department shall
guidelines and determine fees for private sector entities that use the
Sec. 46. Agriculture and
Fisheries Infrastructure Support Services. - The Department of
Works and Highways , the Department of Transportation and
the Department of Trade and Industry and the LGUs shall coordinate with
the Department to address the infrastructure requirements in accordance
with this Act Provided, that The Department and the LGU shall also
its agricultural engineering support in carrying out the smooth and
implementation of agricultural infrastructure projects.
Sec. 47. Criteria for
Prioritization. - The prioritization of government resources for
infrastructure shall be based on the following criteria:
potential of the area;
Sec. 48. Public
Facilities. - Public Infrastructure investments shall give
to the kind , type and model of infrastructure facilities that are
and will be useful for the production, conservation, and distribution
most commodities and should benefit the most number of agriculture and
fisheries producers and processors.
of the investments in the area;
in the area; and
beneficiaries and other small farmers and fisher folk in the area.
Sec. 49. Private Infrastructure
Facilities. - For infrastructure facilities primarily benefiting
investors, the State shall facilitate the purchase and use of such
and shall keep to the minimum the bureaucratic requirements for these
of investments. Private investors include cooperatives or corporations
of agriculture and fisheries producers and processors.
Sec. 50. Public Works
Act. - The Department of Public Works and Highways shall coordinate
with the Department for the purpose of determining the order of
for public works funded under the Public Works Act directly or
affect agriculture and fisheries.
Sec. 51. Fishports, Seaports
and Airports. - The Department of Transportation and
Philippine Ports Authority and Philippine Fisheries Development
shall coordinate with the Department for the purpose of determining
fishports, seaports and airports and facilitating the installation of
and storage facilities , and other post-harvest facilities needed to
the marketing of agriculture and fisheries products Provided, that
, seaports an airports are also equipped with quarantine , sanitary and
phytosanitary centers. The Department of Transportation and
(DOTC) shall have the mandate to cancel arrastre and cargo handling
among operators whom it deems inefficient and/or ineffective owing, but
not limited to, a past history of under-capitalization, lack of
and lack of professional expertise. The DOTC shall recommend to the
Ports Authority and consult with ship-owners and ship-operators in
the cargo-handling capabilities of cargo operators prior to extending
franchises or awards.
Sec. 52. Farm-to-Market
Roads. - The Department shall coordinate with the LGUs and the
and fisher folk in order to identify priority locations of farm-to
roads that take into account the number of farmer and fisher folk and
families who shall benefit therefrom and the amount , kind and
of agricultural and fisheries products produced in the area.
Construction of farm-to-market
roads shall be a priority investment of the LGUs which shall provide a
counterpart of not less than ten percent (10%) of the project cost
to their IRA in the area.
Sec. 53. Rural Energy.
- The Department shall coordinate with the Department of Energy
the Department of Public Works and Highways (DPWH), the National
Administration (NEA) and the National Power Corporation (NAPOCOR) for
identification and installation of appropriate types of energy sources
particularly in the use of non-conventional energy sources for the
in order to enhance agriculture and fisheries development in the area.
Sec. 54. Communications
Infrastructure. - The Department shall coordinate with the DOTC to
facilitate the installation of telecommunication facilities in priority
areas, in order to enhance agriculture and fisheries development .
Sec. 55. Water Supply
System. - the Department shall coordinate with the DPWH and the
for the identification and installation of water supply system in the
for agro-industrial uses to enhance agriculture and fisheries
in the area.
Sec. 56. Research and
Technology Infrastructure. - The Department in coordination with
government agencies shall give priority and facilitate the funding of
necessary for research ventures such as farm laboratories and
farms with state colleges and universities that derive their core funds
from the Department .
Sec. 57. Post-Harvest
Facilities. - The Department shall coordinate with the Bureau of
for Research and Extension and the Post-harvest Horticulture, Training
and Research Center of the University of the Philippines, Los
to identify appropriate post-harvest facilities and technology needed
enhance agriculture and fisheries development in the area.
Sec. 58. Public Market
and Abattoirs. - The Department shall encourage the LGUs to turn
the management and supervision of public markets and abattoirs to
vendors' cooperatives and for that purpose, the appropriation for
facilities shall include the support for market vendor' facilities.
The Department shall coordinate
with the LGUs in the establishment of standardized market systems and
of sanitary market , facilities , and abattoirs, intended to ensure the
food safety and quality.
All markets shall have a
sanitation unit, proper and adequate drainage and sewerage system,
water supply, public toilets with lavatories, garbage receptacles, ice
plants and cold storage, adequate lighting and ventilation and supply
electricity to ensure cleanliness and sanitation. Price monitoring
boards for selected commodities and weighing scales accessible to the
shall also be established.
Proper protection and preservation
of agriculture and fisheries products being sold in the market shall
be observed. All foods which require no further cooking shall be
, covered , or enclosed in containers to preserve the freshness and
contamination. Selling of products on market floors shall be prohibited.
Sec. 59. Agricultural
Machinery. - The Department shall give priority to the development
and promotion of appropriate agricultural machinery and other
mechanization technologies to enhance agricultural mechanization in the
and Consumer Safety
Sec. 60. Declaration of
Policy. - It is the policy of the State that all sectors involved
the production, processing, distribution and marketing of food and
agricultural and fisheries products shall adhere to, and implement the
use of product standards in order to ensure consumer safety and promote
the competitiveness of agriculture and fisheries products.
Sec. 61. Bureau of Agriculture
and Fisheries Product Standards. - The Department, within six (6)
after the approval of this act, and in consultation with the Department
of Trade and Industry and the Bureau of Food and Drug, shall establish
the Bureau of Agriculture and Fisheries Product Standards (BAFPS).
Sec. 62. Coverage. -
The BAFPS shall set and implement standards for fresh, primary-and
agricultural and fishery products.
Sec. 63. Powers and Functions. - The BAFPS
have the following powers and functions:
enforce standards of quality in the processing, preservation,
labeling, importation, exportation, distribution, and advertising of
and fisheries products;
Sec. 64. Pool
and Advisers. - The BAFPS may coordinate, seek the services of,
consult with both private and governmental agencies, research
educational establishments and such other individuals and entities with
expertise in the field of product standards and consumer safety.
standardization, alignment of the local standards with the
of processing plants, storage facilities, abattoirs, as well as public
and private markets in order to ensure freshness, safety and quality of
The Department of Trade and
Industry, the Food and Nutrition Research Institute, and the Bureau of
Food and Drug Administration shall provide technical advice and form
of the pool of experts/advisers of the BAFPS.
Sec. 65. Declaration of
Policy. - It is hereby declared the policy of the State to give
to education and training on science and technology in order to
social progress and promote total human liberation and development.
The State shall promote industrialization
and full employment, based on sound agriculture and fisheries
and agrarian reform, through industries that make full and efficient
of human and natural resources.
Sec. 66. National Agriculture
and Fisheries Education System (NAFES). - The Commission on Higher
Education (CHED), in coordination with the Department and appropriate
agencies, shall establish a National Agriculture and Fisheries
System (NAFES) which shall have the following objectives:
maintain and support a complete and integrated system of agriculture
fisheries education relevant to the needs of the economy, the community
Sec. 67. Education
for Elementary and Secondary Levels. - There is hereby established
an Agriculture and Fisheries Education Program, under the NAFES
designed for elementary and secondary levels. The program shall be
organized and implemented by the DECS with the following objectives:
agriculture and fisheries education from the elementary to the tertiary
improve the system of implementation of academic programs that are
toward achieving agriculture and fisheries development in the country;
, ensure sustainability and promote the global competitiveness, at all
levels, of agriculture and fisheries education.
values that form the foundation for sustained growth in agriculture and
Sec. 68. Post-Secondary
Program. - There is hereby established a Post-Secondary Education
for Agriculture and Fisheries under the NAFES, which shall be
and developed by TESDA in coordination with the appropriate government
agencies and the private sector. The program shall include, among
of agriculture and fisheries education, so that more young and talented
person will look at agriculture and fisheries as an acceptable option
career and livelihood;
of science in agriculture and fisheries development;
positive attitudes towards entrepreneurship and global competition in
agriculture and fisheries business;
curriculum in the elementary and secondary levels by emphasizing the
values necessary for agriculture and fisheries modernization; and
program where students, parents and schools become instruments in
positive changes in the pupil's home and community.
a flexible process of curriculum development;
Sec. 69. Network
Centers of Excellence for Territory Education. - There is hereby
a Network of National Centers of Excellence in Agriculture and
Education, composed of qualified public and private colleges and
duly accredited as National Centers of Excellence (NCE) in the field of
agriculture and fisheries.
training system in the various agricultural curricula and training
and global competitiveness in the agro-fisheries curricula;
and fisheries skills standards and technical testing and certification;
upgrading of learning/training
facilities, school buildings , laboratory equipment; and
development of a
for the strict enforcement of school regulations regarding standards
For this purpose, the CHED
shall formulate and implement a system of accreditation Provided, That
not more than one provincial institute in every province and no more
one national university in each field in every region shall be
as such and Provided, further, That the system shall be based on the
accessibility, population, economic contribution of agriculture and
in the community, and the needs or unique requirements of the area
Sec. 70. Rationalization
Plan. - For the purpose of upgrading and maintaining a high decree
of academic excellence in the fields of agriculture and fisheries, all
existing public and private colleges and universities that are not
designated and accredited as centers of excellence shall be given
time to redirect its program to non-agriculture and/or non-fisheries
needed by the province or region and/or merge their program with
NCEs in accordance with the Rationalization Plan to be jointly
by CHED and the Philippine Association of State Universities and
(PASUC) upon consultation with the institution concerned.
research studies conducted;
of research results;
to agriculture and fisheries development in the target area.
The Rationalization Plan
shall include a policy for the effective utilization of affected
and facilities, and shall not be construed as to result in the decrease
of the budget allocation for the state universities and colleges
Sec. 71. Counterpart Funding
from LGUs. - The LGUs shall, within two, (2) years from the
of this Act, provide at least ten percent (10%) of the Maintenance and
Other Operating Expenses (MOOE) budget for the operation of the
institutes within their area of responsibility.
In consultation with the
LGUs, the CHED shall develop a provincial-national partnership scheme
a reasonable sharing of financial support taking into account social
factors for poor provinces.
Sec. 72. National Integrated
Human Resource Development Plan in Agriculture and Fisheries. -
CHED, in coordination with the Department and appropriate government
shall formulate, develop and implement an integrated human resource
plan in agriculture and fisheries which shall serve as an instrument
will provide over-all direction in setting priorities in curricular
enrollment, performance targets, and investment programs.
Sec. 73. Output-Oriented
Performance Standards. - In order to ensure the institutional
efficiency, and quality, there shall be formulated and developed an
Performance Standards which shall serve as the primary instrument for
For this purpose, all public
and private universities and colleges, that are designated as centers
excellence, shall cause to be installed a computerized monitoring and
system that periodically collects and regularly measures variables
institutional performance based on the Output-Oriented Performance
Sec. 74. Evaluation System.
- Not later than one (1) year from the effectivity of this Act, the
CHED shall establish a baseline information using the Output-Oriented
Standards referred to in Section 73 of this Title. Once every five (5)
years thereafter, all designated NCEs in agriculture and fisheries
be subject to a third party evaluation.
The evaluation shall include,
among others, management and educational experts of national stature
representatives of key sectors of the agriculture and fisheries
as well as representatives of the Department, the Department of
and Natural Resources, the Department of Science and Technology, and
National Economic and Development Authority.
Sec. 75. Agriculture and
Fisheries Board. - There shall be created an Agriculture and
Board in the Professional Regulation Commission to upgrade the
and Fisheries profession.
Those who have not passed
the Civil Service Examination for Fisheries and Agriculture but have
the industry in either private or public capacity for not less than
(5) years shall be automatically granted eligibility by the Board of
The first board of examination
for B.S. Fisheries and/or Agriculture Graduates shall be conducted
one (1) year from the approval of this Act.
Sec. 76. Continuing Agriculture
and Fisheries Education Program. - The Commission on Higher
the Department of Education, Culture and Sports and Technical Education
and Skills Development Authority, in coordination with the Department
the public and private universities and colleges, shall formulate and
a National and Integrated Continuing Agriculture and Fisheries
Program, which shall address the current education and training
of teachers, professors and educators in agriculture and fisheries.
For this purpose, pre-service
and in-service training of teachers in Home Economics Livelihood
(HELE) for the primary level and Technology and Home Economics (THE)
the Secondary level, shall be upgraded.
Sec. 77. Scholarship Program. - The CHED in
coordination with the public and private
and colleges, TESDA and the DBM, shall develop a national scholarship
that provides opportunities for deserving academic staff to pursue
degrees in agriculture and fisheries. Where appropriate, such
program shall also provide opportunities for graduate work in foreign
Sec. 78. Merit System. - To promote the
of scientific excellence and
scholarship, the public and private universities and colleges, in
with the CHED and the DBM, shall institute an output- oriented unified
system of promotion for the academic personnel.
Sec. 79. Budgetary Allocation
Scheme. - The Budgetary Allocation Scheme for NAFES shall be as
or budgets of state universities and colleges, that are herein
as NCEs, shall continue and shall be modified and adjusted in
years in order to meet the standards of the rationalized programs of
institutions as approved by Congress and shall be included in the
General Appropriations Act;
under this Act shall likewise be provided with budgetary support based
on their programs and a new staffing pattern as approved by DBM and
be included in the annual General Appropriations Act.
Sec. 80. Declaration of
Policy. - It is hereby declared the policy of the State to promote
science and technology as essential for national development and
The State shall likewise
give priority to research and development, invention, innovation, and
utilization and to science and technology education, training, and
In addition to appropriate and relevant technology, the state shall
indigenous and self-reliant scientific and technological capabilities,
and their application to the country's productive system and national
Sec. 81. The National
Research and Development System in Agriculture and Fisheries. -
Department, in coordination with the Department of Science and
and other appropriate agencies and research institutions shall enhance,
support and consolidate the existing National Research and Development
System in Agriculture and Fisheries within six (6) months from the
of this Act. Provided, That fisheries research and development shall be
pursued separately, from but in close coordination with that of
Sec. 82. Special Concerns
in Agriculture and Fisheries Research Services. - Agriculture and
Research and Development activities shall be multidisciplinary and
involve farmers, fisherfolk and their organizations, and those engaged
in food and non-food production and processing including the private
Research institutions and
centers shall enjoy autonomy and academic freedom. The Department, in
with the Department of Science and Technology and other appropriate
shall harmonize its merit and output-oriented promotion system
the scientific community in order to promote increased research
and productivity and provide the government research system a
edge in retaining its scientific personnel.
Appropriate technology shall
be used to protect the environment, reduce cost of production , improve
product quality and increase value added for global competitiveness.
Sec. 83. Funds for Research
and Development. - Considering the nature of research, development
and extension activities, funding shall be based on the following
multi-year budgets which shall be treated as research and development
Department and other
agencies, in the national interest, are encouraged to go into
agreements with the private sector in the conduct of research and
provided that the terms and conditions of the agreement are beneficial
to the country.
and fisheries research and development shall be at least one percent
of the gross value added (GVA) by year 2001 allocating at least one
(1%) of the total amount by 1999. The Department of Finance (DOF) in
with the Department shall formulate revenue enhancement measures to
(20%) shall be spent in support of basic research and not more than
percent (80%) shall be used for applied research and technology
and transfer activities.
established from which the scientific community in agriculture and
shall draw its financial resource for sustained career development,
That only the interest earnings of the funds shall be used.
Sec. 84. Excellence and
Accountability in Research and Development. - The Department, in
with the Department of Science and Technology and other appropriate
agencies, shall formulate the national guidelines in evaluating
and development activities and institutions, which shall involve an
and interdisciplinary team of collegial reviewer and evaluators.
Sec. 85. Communication
of Research Results and Research-Extension Linkage. - Research
and technology shall be communicated through the National Information
All government agencies including
the state colleges and universities and private educational
selected as NCEs shall be computerized , networked , provided with
updated information and shall likewise provide, through the NIN results
of research and development activities and current available technology
relating agriculture and fisheries.
Sec. 86. Declaration of
Policy. - It is hereby declared the policy of the State to promote
science and technology as essential for national development and
The State shall give priority for the utilization of research results
formal and non-formal education, extension, and training services. It
support the development of a national extension system that will help
the transformation of Philippine agriculture and fisheries from a
-based to a technology-based industry.
Sec. 87. Extension Services.
- Agriculture and Fisheries extension services shall cover the
major services to the farming and fishing community:
Sec. 88. Special
in the Delivery of Extension services. - The delivery of
and Fisheries Extension Services shall be multidisciplinary and shall
the farmers, fisherfolk, and their organizations and those engaged in
and non-food production and processing, including the private and
support services through trimedia.
There shall be a national
merit and promotion system governing all extension personnel,
of source of funding, to promote professionalism and achieve excellence
and productivity in the provision of the government extension services.
Sec. 89. The National
Extension System for Agriculture and Fisheries (NESAF). - The
in coordination with the appropriate government agencies, shall
a National Extension System for Agriculture and Fisheries.
The National Extension System
for Agriculture and Fisheries shall be composed of three (3) subsystems:
government subsystem which directly complements;
Sec. 90. The
Government Units. - The LGUs shall be responsible for delivering
agriculture and fisheries extension services.
The provincial governments
shall integrate the operations for the agriculture extension services
shall undertake an annual evaluation of all municipal extension
The extension program of
state colleges and universities shall primarily focus on the
of the capability of the LGU extension service by providing:
Sec. 91. Role
Sector in Extension. - The department shall encourage the
of farmers and fisherfolk cooperatives and associations and others in
private sector in the training and other complementary extension
especially in community organizing, use of participatory approaches,
of training materials, regenerative agricultural technologies,
and management skills.
of LGU extension projects; and
through the tri-media and electronics.
The Department is hereby
authorized to commission and provide funding for such training and
services undertaken by the private sector.
Sec. 92. The Role of Government
Agencies. - The Department, together with state colleges and
shall assist in the LGU's extension system by improving their
and efficiency through capability-building and complementary extension
activities such as:
Sec. 93. Funding
Activities. - Extension activities shall be supported by the
training of LGU
multi-year budgets that shall be treated as grants;
in Extension. - The Department shall formulate the guidelines in
extension, activities, and institutions, which shall involve an
and interdisciplinary team of the collegial reviewers and evaluators.
from the Department to the local government units as extension grants,
and fisheries extension services shall be at least one percent (1%) of
the gross value added (GVA) by year 2001
Sec.95. Extension Communication
Support for LGU's. - The Department in coordination with the
and private universities and colleges, shall develop an integrated
support for national and LGU extension programs. The Department shall
the LGU's in the computerization of communication support services to
and linkages to the NIN.
Sec. 96. Declaration of
policy. - It is hereby declared the policy of the State to promote
full employment. Economic history, however, shows that as an economy
the number of workers employed in its agricultural sector declines. It
is therefore necessary to formulate policies and implement programs
will employ workers efficiently in rural areas in order to improve
standard of living, and reduce their propensity to migrate to urban
Sec. 97. Objectives.
- Rural non-farm employment aims to:
needs approach to rural development;
adaptable and flexible through education and training;
and the establishment of agro- processing enterprises in rural
Sec. 98. Principles.
- The Department, in coordination with the appropriate government
shall formulate the Basic Needs Program to create employment and
the effect of liberalization based on the following principles:
shall be granted. The normal rules of banking shall apply to all
involved, provided that existing credit arrangements with ARBs shall
from government agencies and the private sectors shall develop pilot
in selected locales to establish the planning, implementation and
information, advisory and related services of the Government free of
participation of the
private sector shall be voluntary.
Sec. 99. Participation
of Government Agencies. - The replication of the program shall be
responsibility of the local government units concerned in collaboration
with the appropriate government agencies, and the private sector. The
government units shall bear the costs of promoting and monitoring the
needs program for which their IRA shall be increased accordingly as
by the Secretary of the Department Provided, That the appropriate
government agencies shall continue to provide the necessary technical
well as financial assistance to the LGUs in the replication of the
The Cooperatives Development
Authority shall encourage the establishment and growth of associations
and cooperatives as vehicles for the stable expansion of basic needs
The Department of Education,
Culture and Sports, Department of Health, and the Technical Education
Skills Development Authority shall coordinate with the Department and
in the review, rationalization and reallocation of their regular
as well as their budgets under the GATT- related measures fund to
education, training, health and other welfare services for farmers and
Sec. 100. Principles.
- Rural industrialization and industry dispersal programs shall be
based on the interplay of market forces. The Board of Investments (BOI)
is hereby required to give the highest priority to the grant of
to business and industries with linkages to agriculture.
Sec. 101. Role of Government
Agencies. - The appropriate government agencies, under the
of the LGUs concerned, shall provide integrated services and
to prospective enterprises under the one-stop-shop concept.
Local government units are
authorized to undertake investment and marketing missions provided that
the costs of such missions are borne by the LGUs concerned. In making
land use plans, the LGUs, in consultation with the appropriate
agencies concerned, shall identify areas for industrial parks.
The Department shall coordinate
with the Department of Trade and Industry , in particular, the Board of
Investments, in the formulation of investments priorities for rural
The Regional Wage Boards
shall consult participating enterprises in this program before they
Sec. 102. Participating
Enterprises. - Participating enterprises may request any government
agency for training, technical and advisory services free of cost.
A set of incentives shall
be given to enterprises that subcontract part of their production to
fisherfolk and landless workers during periods when they are not
in agricultural activities.
Sec. 103. Financing. -
Except for basic infrastructure and other goods that benefit all
the facilities of this program should be undertaken and financed by the
Sec. 104. Role of TESDA. - TESDA shall
local committees that will advise on the
nature and duration of training for the above-mentioned programs.
TESDA is authorized to request
the additional budgetary resources for these programs: Provided, That
a reasonable period, the task of coordinating the training is
to the LGUs concerned.
Sec. 105. Role of the
DENR. - The Department and the DENR shall organize the training of
workers in coastal resources management and sustainable fishing
Sec. 106. Role of the
Technology and Livelihood Resource Center (TLRC). - The TLRC shall
undertake field training in entrepreneurship and management of workers
involved in the basic needs program.
Sec. 107. Special Training
Projects for Women. - The Department, in collaboration with the
government agencies concerned shall plan and implement special training
projects for women for absorption in the basic needs and rural
Sec.108. Taxation policies
must not deter the growth of value-adding activities in the rural areas.
Sec. 109. All enterprises
engaged in agriculture and fisheries as duly certified by the
in consultation with the Department of Finance and the board of
shall, for five (5) years after the effectivity of this Act, be
from the payment of tariff and duties for the importation of all types
of agriculture and fisheries inputs, equipment and machinery such as,
not limited to, fertilizer, insecticide, pesticide, tractor, trailers,
trucks, farm implements and machinery, harvesters, threshers, hybrid
genetic materials, sprayers, packaging machinery and materials,
facilities such as conveyors and mini loaders, weighing scales,
equipment, spare parts of all agricultural equipment, fishing equipment
and parts thereof, refrigeration equipment, and renewable energy
such as solar panels Provided, however, That the imported
and fishery inputs, equipment and machinery shall be for the exclusive
use of the importing enterprise.
The Department, in consultation
with the Department of Finance and the Board of Investment, shall,
ninety (90) days from the effectivity of this Act, formulate the
rules and regulations governing the importation of agriculture and
inputs, equipment and machinery.
Sec. 110. Any person, partnership,
corporation, association and other juridical entity found circumventing
the provisions of Section 109 of this Act shall suffer the penalty of
for a period of not less than six (6) months but not more than one (1)
year, or a fine equivalent to two hundred percent (200%) of the value
the imported materials, or both, at the discretion of the court, and
accessory penalties of confiscation of the imported goods in favor of
government and revocation of the privileges given under this title.
In cases where the violator
is a juridical entity, the officers responsible in the violation of
109 shall suffer the penalty of imprisonment prescribed in this Section.
The importation of goods
equivalent to or exceeding the declared assets of the enterprise,
or the authorized capital stock in case of corporations, and/or the
of the imported goods shall be a prima facie evidence of the violation
of the provisions of Section 109 of this Act.
Sec. 111. Initial Appropriation. - For the
year of implementation of this Act, the amount of
Billion pesos (P20,000,000,000.00) is hereby appropriated. The
is hereby authorized to re-align its appropriations in the current year
of the date of effectivity of this Act to conform with the requirements
of this Act Provided, That the amount shall be allocated and disbursed
(30%) for irrigation;
Appropriation. - The Department of Budget and Management (DBM) is
to include annually in the next six (6) years, in the President's
of expenditures for submission to Congress, and release, an amount not
less than Seventeen billion pesos (P17,000,000,000.00) for the
of this Act.
post-harvest facilities Provided, That the Secretary of Agriculture may
invest up to fifty percent (50%) of the said amount to fund
facilities of cooperatives, especially market vendors' cooperatives,
said cooperatives exist and are operational Provided, further, That if
no cooperatives are operational, said amount shall fund the
facilities of the market -assistance system;
other infrastructure including fishports, seaports, and airports,
-coast-to-market roads, rural energy, communications infrastructure,
rehabilitation, water supply system, research and technology
public markets and abattoirs;
the Agro-industry Modernization Credit and Financing Program (AMCFP) to
be deposited by the Department in participating rural-based public and
private financial institutions provided that no less than fifty percent
(50%) of said funds shall be deposited in rural banks in cooperative
the implementation of the Farmer-Fisherfolk Marketing Assistance System
and support of market vendors' cooperatives;
research and development, four percent (4%) of which shall be used to
the Biotechnology Program;
capability-building of farmers and fisherfolk organizations and LGUs
the effective implementation of the agriculture and fisheries programs
at the local level;
supplement of Extension Workers under the LGUs;
NAFES , for the upgrading of the facilities of State Universities and
that will be chosen as national center of excellence in agriculture and
the National Information Network (NIN) consisting of both the national
and local levels;
percent (1.75%) for SUC- and TESDA-administered Rural Non-Farm
for the identification of the SAFDZs.
Additional funds over and
above the regular yearly budget of the Department shall be sourced from
twenty percent (20%) of the proceeds of the securitization of
assets, including the Subic, Clark, and other special economic zones.
Other sources of funds shall
be from the following:
(50%) of the net earnings of the Public Estates Authority;
Sec. 113. Implementing
and Regulations. - The Secretary within ninety (90) working days
the effectivity of this act, together with the Department of Agrarian
(DAR), Department of Environment and Natural Resources (DENR),
of Finance (DOF), Department of Science and Technology (DOST),
of Trade and Industry (DTI), Commission on Higher Education (CHED),
Education and Skills Development Authority (TESDA), Department of
, Culture and sports (DECS), Department of Social services and
(DSSD), National Economic and Development Authority (NEDA), Department
of Budget and Management (DBM), Department of Labor and Employment
Commission on Audit (COA), Civil Service Commission (CSC), in
with other agencies concerned, farmers, fisherfolk and agribusiness
and in coordination with the Congressional Oversight committee on
and Fisheries Modernization, shall promulgate the rules and regulations
for the effective implementation of this act.
or donations, whether from local or foreign sources;
the TESDA Skills Development Fund;
privatization of the Food Terminal Inc. (FTI), the Bureau of Animal
(BAI), the Bureau of Plant Industry (BPI), and other assets of the
that will be identified by the DA Secretary and recommended to the
Access Volume (MAV) in accordance with the provisions of Republic Act
the Support Facilities and Services Fund under Republic Act No. 6657.
The Secretary shall submit
to the Committee on Agriculture of both houses of congress copies of
implementing rules and regulations within thirty (30) days after their
Any violation of this section
shall render the official/s concerned liable under Republic Act. No.
otherwise known as the "Code of Conduct and Ethical Standards for
Officials and Employees" and other existing administrative and/or
Sec. 114. Congressional
Oversight Committee on Agricultural and Fisheries Modernization. -
A congressional Committee on Agricultural and Fisheries Modernization
hereby created to be composed of the Chairs of the Committee on
of both Houses, six (6) members of the House of Representatives and six
(6) members of the Senate, to be designated respectively by the Speaker
of the House and the President of the Senate, who shall endeavor to
the various sectors and regions of the country represented.
The Chairs of the Committees
on Agriculture in the Senate and House of Representatives, shall be
the Chair and Co-Chair of the Oversight Committee. The other members
receive no compensation: however, traveling and other necessary
shall be allowed.
The Committee shall oversee
and monitor the implementation of the Congressional Commission on
Modernization (AGRICOM) recommendations as well as all programs,
and activities related to agriculture and fisheries, and its allied
in both public and private sectors, with a view to providing all
support and assistance within the powers of Congress to ensure their
wherever feasible, in the national, regional, provincial, municipal,
sectoral development plans to recommend the disposal of assets no
needed by the Department to fund the modernization program, and to see
them through their successful implementation.
Sec. 115. Powers and Functions
of the Committee. - The Congressional Oversight on Agriculture and
Fisheries Modernization shall have the following powers and functions:
adopt guidelines that will govern its work;
Sec. 116. Periodic
Reports. - The Committee shall submit periodic reports on its
recommendations on actions to be taken by Congress and the appropriate
department, and in order to carry out the objectives of this Act, an
amount of Twenty million pesos (P20,000,000.00) is hereby appropriated
for the Oversight Committee for the first year of its operation.
testimonies and reports pertinent to its specified concerns;
bureau, office or instrumentality of the Government such assistance as
may be needed, including technical information, preparation, and
of reports and submission of recommendations or plans as it may require;
public or private citizen to testify before it, or require by subpoena
duces tecum to produce before it such records, reports or other
as may be necessary in the performance of its functions;
the public and private sectors as may be needed;
work of AGRICOM, such as editing and printing all technical reports and
studies as well as bibliographic cataloguing of its collection of
materials, continue its information and advocacy work;
to the Committee all works, outputs, source materials, and assets,
supplies and equipment of AGRICOM;
the work of the Committee and all disbursements therefrom , including
of all personnel;
hire and appoint such employees and personnel whether temporary ,
or on consultancy, subject to applicable rules; and
all the powers necessary to attain the purposes for which its created.
Sec. 117. Automatic Review. - Every five (5)
after the effectivity of this Act, an
review panel composed of experts to be appointed by the President shall
review the policies and programs in the Agriculture and Fisheries
Act and shall make recommendations, based on its findings, to the
and to both Houses of Congress.
Sec. 118. Repealing Clause.
- All laws, decrees, executive issuance, rules and regulations
with this Act are hereby repealed or modified accordingly.
Sec. 119. Separability
Clause. - The provisions of this Act are hereby declared to be
and in the event one or more of such provisions are held
the validity of the other provisions shall not be affected thereby.
Sec. 120. Effectivity.
- This Act shall take effect thirty (30) days from the date of its
in the Official Gazette or in at least two (2) newspapers general
Approved: 22 December 1997.