natres: (LAND) agriculture

8/13/2019 natres: (LAND) agriculture

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[REPUBLIC ACT NO. 8435]

AN ACT PRESCRIBING URGENT RELATED MEASURES TO MODERNIZE THE AGRICULTURE ANDFISHERIES SECTORS OF THE COUNTRY IN ORDER TO ENHANCE THEIR PROFITABILITY, AND

PREPARE SAID SECTORS FOR THE CHALLENGES OF GLOBALIZATION THROUGH AN ADEQUATE,FOCUSED AND RATIONAL DELIVERY OF NECESSARY SUPPORT SERVICES, APPROPRIATING

FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled.

SEC. 1. Short Title. – This Act shall be known as the ―Agriculture and Fisheries Modernization Act of 1997.‖

SEC. 2. Declaration of Policy. – The goals of the national economy are a more equitable distribution of

opportunities, income and wealth; a sustained increase in the amount of goods and services produced by thenation for the benefit of the people; and an expanding productivity as the key to raising the quality of l ife for all,especially the underprivileged.

The State shall promote industrialization and full employment based on sound agricultural development andagrarian reform, through industries that make full and efficient use of human and natural resources, and whichare competitive in both domestic and foreign markets. In pursuit of these goals, all sectors of the economy andall regions of the country shall be given optimum opportunity to develop. Private enterprises, includingcorporations, cooperatives, and similar coll ective organizations, shall be encouraged to broaden the base of theirownership.

Thus, it is hereby declared the policy of the State to enable those who belong to the agriculture and fisheriessectors to participate and share in t he fruits of development and growth in a manner that utilizes the nation’sresources 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 i n our staple food, namely rice and white corn. Theproduction of rice and white corn shall be optimized to meet our local consumption and shall be given adequatesupport by the State.

The State shall adopt the market approach in assisting the agriculture and fisheries sectors while recognizing thecontribution of said sectors to food security, environmental protection, and balanced urban and ruraldevelopment, without neglecting the welfare of the consumers, especially the lower income groups. The Stateshall promote market-oriented policies in agricultural production to encourage farmers to shift to more profitablecrops.

The State shall empower the agriculture and fisheries sectors to develop and sustain themselves. Toward thisend, the State shall ensure the development of the agriculture and fisheries sectors in accordance with thefollowing principles:

a) Poverty Alleviation and Social Equity – The State shall ensure that the poorer sectors of society haveequitable access to resources, income opportunities, basic and support services and infrastructure especially inareas where productivity is low as a means of improving their quality of life compared with other sectors ofsociety;

b) Food Security – The State shall assure the availability, adequacy, accessibility and affordability of foodsupplies to all at all times;

c) Rational Use of Resources – The State shall adopt a rational approach in the allocation of public investmentsin agriculture and fisheries in order to assure efficiency and effectiveness in the use of scarce resources and thusobtain optimal returns on its investments;

d) Global Competitiveness – The State shall enhance the competitiveness of the agriculture and fisheries sectorsin both domestic and foreign markets;

e) Sustainable Development – The State shall promote development that is compatible with the preservation ofthe ecosystem in areas where agriculture and fisheries activities are carried out. The State should exert care and

judicious use of the country’s natural resources in order to attain long-term sustainability.

f) People Empowerment – The State shall promote people empowerment by enabling all citizens through directparticipation or through their duly elected, chosen or designated representatives the opportunity to participate inpolicy formulation and decision-making by establishing the appropriate mechanisms and by giving them accessto information; and

g) Protection from Unfair Competition – The State shall protect small farmers and fisherfolk from unfaircompetition such as monopolistic and oligopolistic practices by promoting a policy environment that providesthem priority access to credit and strengthened cooperative-based marketing system.

SEC. 3. Statement of Objectives. – This Act shall have the following objectives:

a) To modernize the agriculture and fisheries sectors by transforming these sectors from a resource-based to a

technology-based industry;b) To enhance profits and incomes in the agriculture and fisheries sectors, particularly the small farmers andfisherfolk, by ensuring equitable access to assets, resources and services, and promoting higher-value crops,value-added processing, agribusiness activities, and agro-industrialization;

c) To ensure the accessibility, availability and stable supply of food to all at all times;

d) To encourage horizontal and vertical integration, consolidation and expansion of agriculture and fisheriesactivities, groups, functions, and other services through the organization of cooperatives, farmers’ and fisherfolk’sassociations, corporations, nucleus estates, and consolidated farms and to enable these entities to benefit fromeconomies of scale, afford them a stronger negotiating position, pursue more focused, efficient and appropriateresearch and development efforts and enable them to hire professional managers;

e) To promote people empowerment by strengthening people’s organizations, cooperatives and NGOs and byestablishing and improving mechanisms and processes for their participation in government decision-making andimplementation;

f) To pursue a market-driven approach to enhance the comparative advantage to our agriculture and fisheriessectors in the world market;

g) To induce the agriculture and fi sheries sectors to ascend continuously the value-added ladder by subjectingtheir traditional or new products to further processing in order to minimize the marketing of raw, unfinished orunprocessed products;

h) To adopt policies that will promote industry dispersal and rural i ndustrialization by providing incentives to localand foreign investors to establish industries that have backward linkages to the country’s agriculture andfisheries resource base;

i) To provide social and economic adjustment measures that increase productivity and improve market efficiencywhile ensuring the protection and preservation of the environment and equity for small farmers and fisherfolk;

and

j) To improve the quality of life of all sectors.

SEC. 4. Definition of Terms.

―Agrarian Reform Community‖ is a barangay at the minimum or a cluster of contiguous barangays where there isa critical mass of farmers or farm workers and which features the main thrust of agrarian development: landtenure improvement and effective delivery of support services.

―Agricultural Lands‖ refers to lands devoted to or suitable for the cultivation of the soil, planting of crops, growingof trees, raising of l ivestock, poultry, fish or aquaculture production, including the harvesting of such farmproducts, and other farm activities and practices performed in conjunction with such farming operations bypersons whether natural or juridical and not classified by law as mineral land, forest land, residential land,commercial land, or industrial land.

―Agricultural Land Use Conversion‖ refers to the process of changing the use of agricultural land to non-agricultural uses.



―Agricultural Sector‖ is the sector engaged in the cultivation of the soil, planting of crops, growing of fruit t rees,raising of livestock, poultry, or fish, including the harvesting and marketing of such farm products, and other farmactivities and practices.

―Agricultural Mechanization‖ is the development, adoption, manufacture and application of appropriate location-specific, and cost-effective agricultural technology using human, animal, mechanical, electrical and other non-conventional sources of energy for agricultural production and post-harvest operations consistent with agronomicconditions and for efficient and economic farm management.

―Agriculture and Fisheries Modernization‖ is the process of transforming the agriculture and fisheries sectors intoone that is dynamic, technologically advanced and competitive yet centered on human development, guided bythe sound practices of sustainability and the principles of social justice.

―Agro-Processing Activities‖ refers to the processing of raw agricultural and fishery products into semi-processedor finished products which include materials for the manufacture of food and/or non-food products,pharmaceuticals and other industrial products.

―Banks‖, collectively used, means government banks and private banks, rural banks and cooperative banks.

―Basic Needs Approach to Development‖ involves the identification, production and marketing of wage goodsand services for consumption of rural communities.

―Communal Irrigation System (CIS)‖ is an irrigation system that is managed by a bona fide Irrigators Association.

―Competitive Advantage‖ refers to competitive edge in terms of product quality and/or price. It likewise refers tothe ability to produce a product with the greatest relative efficiency 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 contributionsto the capital required and accepting a fair share of the ri sks and benefits of the undertaking in accordance withuniversally accepted cooperative principles.

―Department‖ refers to the Department of Agriculture.

―Economic Scale‖ refers to the minimum quantity or 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 spreading out offixed costs over a greater number of units produced.

―Empowerment‖ involves providing authority, responsibility and information to people directly engaged inagriculture and fishery production, primarily at the level of the farmers, fisherfolk and those engaged in food andnon-food production and processing, in order to give them wider choices and enable them to take advantage ofthe benefits of the agriculture and fishery industries.

―Extension Services‖ refers to the provision of training, information, and support services by the government andnon-government organizations to the agriculture and fisheries sectors to improve the technical, business andsocial capabilities of farmers and fisherfolk.

―Farmer’s and Fisherfolk’s Organizations or Associations‖ refers to farmers and fisherfolk’s cooperatives,associations, or corporations duly registered with appropriate government agencies and which are composedprimarily of small agricultural producers, farmers, farm workers, agrarian reform beneficiaries, fisherfolk whovoluntarily join together to form business enterprises or non-business organizations which they themselves own,control and patronize.

―Farm-to-Market Roads‖ refers to roads linking the agriculture and fisheries production sites, coastal landingpoints and post-harvest facilities to the market and arterial roads and highways.

―Fisheries‖ refers to all systems or networks of interrelated activities which include the production, growing,

harvesting, processing, marketing, developing, conserving, and managing of all aquatic resources and fisheriesareas.

―Fisheries Sector‖ is the sector engaged in the production, growing, harvesting, processing, marketing,developing, conserving, and managing of aquatic resources and fisheries areas.

―Fishing‖ refers to the application of techniques using various gear in catching fish and other fisheries products.

―Fishing Grounds‖ refers to areas in any body of water where fish and other aquatic resources congregate andbecome target of capture.

―Food Security‖ refers to the policy objective, plan and strategy of meeting the food requirements of the presentand future generations of Filipinos in substantial quantity, ensuring the availability and affordability of food to all ,either through local production or importation, or both, based on the country’s existing and potential resourceendowment and related production advantages, and consistent with the overall national development objectives

and policies. However, sufficiency in rice and white corn should be pursued.―Fresh Agricultural and Fishery Products‖ refers to agricultural and fisheries products newly taken or captureddirectly from its natural state or habitat, or those newly harvested or gathered from agricultural areas or bodies ofwater used for aquaculture.

―Global Competitiveness‖ refers to the ability to compete in terms of price, quality and volume of agriculture andfishery products relative to those of other countries.

―Gross Value- Added‖ refers to the total value, excluding the value of non-agricultural or fishery intermediateinputs, of goods and services contributed by the agricultural and fisheries sectors.

―Headworks‖ refers to the composite parts of the i rrigation system that divert water from natural bodies of watersuch as rivers, streams, and lakes.

―Industrial Dispersal‖ refers to the encouragement given to manufacturing enterprises to establish their plants in

rural areas. Such firms normally use agricultural raw materials either in their primary or intermediate state.

―Irrigable Lands‖ refers to lands which display marked characteristics justifying the operation of an irrigationsystem.

―Irrigated Lands‖ refers to lands serviced by natural irrigation or irri gation facilities. These include lands wherewater is not readily available as existing irrigation facilities need rehabilitation or upgrading or where irrigationwater is not available year-round.

―Irrigation System‖ refers to a system of irrigation facilities covering contiguous areas.

―Irrigators’ Association (IA)‖ refers to an association of farmers within a contiguous area served by a NationalIrrigation System or Communal Irrigation System.

―Land Use‖ refers to the manner of utilizing the land, including its allocation, development and management.

―Land Use Plan‖ refers to a document embodying a set of policies accompanied by maps and similar illustrationswhich represent the community-desired pattern of population distribution and a proposal for the future allocationof land to the various land-using activities, in accordance with the social and economic objectives of the people.It identifies the location, character and extent of the area’s land resources to be used for different purposes andincludes the 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 management of alllands within a given territory or jurisdiction according to the inherent qualities of the land itself and supportive ofsustainable, economic, demographic, socio-cultural and environmental objectives as an aid to decision-makingand legislation.

―Main Canal‖ refers to the channel where diverted water f rom a source flows to the intended area to be irrigated.

―Market Infrastructure‖ refers to facilities including, but not limited to market buildings, slaughterhouses, holdingpens, warehouses, market information centers, connecting roads, transport and communication and cold storage

used by the farmers and fisherfolk in marketing their produce.



―National Information Network (NIN)‖ refers to an information network which links all offices and levels of theDepartment with various research institutions and local end-users, providing easy access to information andmarketing services related to agriculture and fisheries.

―National Irrigation System (NIS)‖ refers to a major i rrigation system managed by the National Irrigation Administration.

―Network of Protected Areas for Agricultural and Agro-Industrial Development (NPAAAD)‖ refers to agriculturalareas identified by the Department through the Bureau of Soils and Water Management in coordination with theNational Mapping and Resource Information Authority in order to ensure the efficient utilization of land foragriculture and agro-industrial development and promote sustainable growth. The NPAAAD covers all irrigatedareas, all irrigable lands already covered by irrigation projects with firm funding commitments; all alluvial plain

land highly suitable for agriculture whether irrigated or not; agro-industrial croplands or lands presently planted toindustrial crops that support the viability of existing agricultural infrastructure and agro-based enterprises,highlands, or areas located at an elevation of five hundred (500) meters or above and have the potential forgrowing semi-temperate and high-value crops; all agricultural lands that are ecologically fragile, the conversion ofwhich result in serious environmental degradation, and mangrove areas and fish sanctuaries.

―On-Farm Irrigation Facilities‖ refers to composite facilities that permit entry of water to paddy areas and consistof farm ditches and turnouts.

―Primary Processing‖ refers to the physical alteration of raw agricultural or fishery products with or without theuse of mechanical facilities.

―Post-Harvest Activities‖ includes, but is not limited to, threshing, drying, milling, grading, storing, and handling ofproduce and such other activities as stripping, winnowing, chipping and washing.

―Post-Harvest Facilities‖ includes, but is not limited to, threshers, moisture meters, dryers, weighing scales,milling equipment, fish ports, fish landings, ice plants and cold storage facilities, processing plants, warehouses,buying stations, market infrastructure and transportation facilities.

―Premature Conversion of Agricultural Land‖ refers to the undertaking of any development activity, the results ofwhich modify or alter the physical characteristics of the agricultural lands to render them suitable for non-agricultural purposes, without an approved order of conversion from the DAR.

―Resource Accounting‖ refers to the process of tracking changes in the environment and natural resourcesbiophysically and economically in monetary terms.

―Resource-based‖ refers to the utilization of natural resources.

―Rural Industrialization‖ refers to the process by which the economy is transformed from one that ispredominantly agricultural to one that is dominantly industrial and service-oriented. Agriculture provides the

impetus and push for industry and services through the market that it creates, the labor that it absorbs, and theincome that it generates which is channeled to industry and services. As development continues, with agriculturestill an important sector, industry and services begin to generate income and markets and concomitantly increasetheir share of total income.

―Strategic Agriculture and Fisheries Development Zones (SAFDZ)‖ refers to the areas within the NPAAADidentified for production, agro-processing and marketing activities to help develop and modernize, with thesupport of government, the agriculture and fisheries sectors in an environmentally and socio-culturally soundmanner.

―Secondary Canal‖ refers to the channel connected to the main canal which distributes irrigation to specificareas.

―Secondary Processing‖ refers to the physical transformation of semi-processed agricultural or fishery products.

―Shallow Tube Well (STW)‖ refers to a tube or shaft vertically set into the ground for the purpose of bringingground water to the soil surface from a depth of less than 20 meters by suction lifting.

―Small Farmers and Fisherfolk‖ refers to natural persons dependent on small -scale subsistence farming andfishing activities as their primary source of income.

―Small and Medium Enterprise (SME)‖ r efers to any business activity or enterprise engaged in industry,agribusiness and/or services, whether single proprietorship, cooperative, partnership or corporation whose totalassets, inclusive of those arising from loans but exclusive of the land on wh ich the particular business entity’soffice, plant and equipment are situated, must have value falling under the following categories:

Micro : not more than P1,500,000

Small : P1,500,001 to P15,000,000

Medium : P15,000,001 to P60,000,000

The Department, in consultation with the Congressional Oversight Committee on Agricultural and FisheriesModernization, may adjust the above values as deemed necessary.

―Socio-Culturally Sound‖ means the consideration of the social structure of the community such as leadershippattern, distribution of roles across gender and age groups, the diversity of religion and other spiritual beliefs,ethnicity and cultural diversity of the population.

―Technology-based‖ refers to utilization of technology.

―Zoning Ordinance‖ refers to a local legislation approving the development/land use plan and providing for theregulations and other conditions on the uses of land including the limitation on the infrastructure that may beplaced within the territorial jurisdiction of a city or municipality

TITLE I

PRODUCTION AND MARKETING SUPPORTSERVICES

Chapter 1

Strategic Agricultural and FisheriesDevelopment Zones

SEC. 5. Declaration of Policy. – It is the policy of the State to ensure that all sectors of the economy and allregions of the country shall be given optimum opportunity to develop through the rational and sustainable use ofresources peculiar to each area in order to maximize agricultural productivity, promote efficiency and equity andaccelerate the modernization of the agriculture and fisheries sectors of the country.

SEC. 6. Network of Areas for Agricultural and Agro-Industrial Development. – The Department shall, within six(6) months after the approval of this Act, and in consultation with the local government units, appropriate

government agencies, concerned non-government organizations (NGOs) and organized farmers’ and fisherfolk’sgroups, identify the Strategic Agriculture and Fisheries Development Zones (SAFDZ) within the network ofprotected areas for agricultural and agro-industrial development to ensure that lands are efficiently andsustainably utilized for food and non-food production and agro-industrialization.

The SAFDZ, which shall serve as centers where development in the agriculture and fisheries sectors arecatalyzed in an environmentally and socio-culturally sound manner, shall be identified on the basis of thefollowing criteria:

a) Agro-climatic and environmental conditions giving the area a competitive advantage in the cultivation, culture,production and processing of particular crops, animals and aquatic products;

b) Strategic location of the area for the establishment of agriculture or fisheries infrastructure, industrialcomplexes, production and processing zones;

c) Strategic location of the area for market development and market networking both at the local andinternational levels; and



d) Dominant presence of agrarian reform communities (ARCs) and/or small owner-cultivators and amortizingowners/agrarian reform beneficiaries and other small farmers and fisherfolk in the area.

The SAFDZ shall have an integrated development plan consisting of production, processing, investment,marketing, human resources and environmental protection components.

SEC. 7. Model Farms. – The Department, in coordination with the local government units (LGUs) andappropriate government agencies, may designate agrarian reform communities (ARCs) and other areas withinthe SAFDZ suitable for economic scale production which will serve as model farms.

Farmer-landowners whose lands are located within these designated areas shall be given the option to enter intoa management agreement with corporate entities with proven competence in farm operations and management,

high-end quality production and productivity through the use of up-to-date technology and collateral resourcessuch as skilled manpower, adequate capital and credit, and access to markets, consistent with existing laws.

SEC. 8. Mapping. – The Department, through the Bureau of Soils and Water Management (BSWM), incoordination with the National Mapping and Resource Information Authority (NAMRIA) and the Housing andLand Use Regulatory Board (HLURB) shall undertake the mapping of the network of areas for agricultural andagro-industrial development for all municipalities, cities at an appropriate scale. The BSWM may call on otheragencies to provide technical and other logistical support in this undertaking.

SEC. 9. Delineation of Strategic Agriculture and Fisheries Development Zones. – The Department, inconsultation with the Department of Agrarian Reform, the Department of Trade and Industry, the Department ofEnvironment and Natural Resources, Department of Science and Technology, the concerned LGUs, theorganized farmers and fisherfolk groups, the private sector and communities shall, without prejudice to thedevelopment of identified economic zones and free ports, establish and delineate, based on sound resourceaccounting, the SAFDZ within on (1) year from the effectivity of this Act.

All irrigated lands, irrigable lands already covered by irrigation projects with firm funding commitments, and landswith existing or having the potential for growing high-value crops so delineated and included within the SAFDZshall not be converted for a period of five (5) years from the effectivity of this Act: Provided, however, that notmore than five percent (5%) of the said lands located within the SAFDZ may be converted upon compliance withexisting laws, rules, regulations, executive orders and issuances, and administrative orders relating to land useconversion: Provided, further, That thereafter: 1) a review of the SAFDZ, specifically on the productivity of theareas, improvement of the quality of life of farmers and fisherfolk, and efficiency and effectiveness of the supportservices shall be conducted by the Department and the Department of Agrarian Reform, in coordination with theCongressional Oversight Committee on Agricultural and Fisheries Modernization; 2) conversion may be allowed,if at all, on a case-to-case basis subject to existing l aws, rules, regulations, executive orders and issuances, andadministrative orders governing land use conversion; and, 3) in case of conversion, the land owner will pay theDepartment the amount equivalent to the government’s investment cost including inflation.

SEC. 10. Preparation of Land Use and Zoning Ordinance. Within one (1) year from the finalization of the SAFDZ,in every city and municipality, all cities and municipalities shall have prepared their respective land use andzoning ordinance incorporating the SAFDZ, where applicable. Thereafter, all land use plans and zoningordinances shall be updated every four (4) years or as often as may be deemed necessary upon therecommendation of the Housing and Land use Regulatory Board and must be completed within the first year ofthe term of office of the mayor. If the cities/municipalities fail to comply with the preparation of zoning and landuse plans, the DILG shall impose the penalty as provided for under Republic Act No. 7160.

SEC. 11. Penalty for Agricultural Inactivity and Premature Conversion. – Any person or juridical entity whoknowingly or deliberately causes any irrigated agricultural lands seven (7) hectares or larger, whether contiguousor not, within the protected areas for agricultural development, as specified under Section 6 in relation to Section9 of this Act, to lie idle and unproductive for a period exceeding one (1) year, unless due to force majeure, shallbe subject to an idle land tax of Three Thousand Pesos (P3,000.00) per hectare per year. In addition, the violatorshall be required to put back such lands to productive agricultural use. Should the continued agricultural

inactivity, unless due to force majeure, exceed a period of two (2) years, the land shall be subject to escheatproceedings.

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 (100%) of the government’s investment cost, or both, atthe discretion of the court, and an accessory penalty of forfeiture of the land and any improvement thereon.

In addition, the DAR may impose the following penalties, after determining, in an administrative proceedings, thatviolation of this law has been committed:

a) Cancellation or withdrawal of the authorization for land use conversion; and

b) Blacklisting, or automatic disapproval of pending and subsequent conversion applications that they may fil ewith the DAR.

SEC. 12. Protection of Watershed Areas. – All watersheds that are sources of water for existing and potential

irrigable areas and recharge areas of major aquifers i dentified by the Department of Agriculture and theDepartment of Environment and Natural Resources shall be preserved as such at all times.

Chapter 2

Agriculture and FisheriesModernization Plan

SEC. 13. Agriculture and Fisheries Modernization Plan (AFMP). The Department in consultation with the farmersand fisherfolk, the private sector, NGOs, people’s organizations and the appropriate government agencies andoffices, shall formulate and implement a medium- and long-term comprehensive Agriculture and FisheriesModernization Plan.

The Agriculture and Fisheries Modernization Plan shall focus on fi ve (5) major concerns;

a) Food security;b) Poverty alleviation and social equity;c) Income enhancement and profitability, especially for farmers and fisherfolk;d) Global competitiveness; ande) Sustainability.

SEC. 14. Food Security, Poverty Alleviation, Social Equity and Income Enhancement. – The Department, incoordination with other concerned departments or agencies, shall formulate medium- and long-term plansaddressing food security, poverty alleviation, social equity and income enhancement concerns based on, but notlimited to, the following goals and indicators of development.

a) Increased income and profit of small farmers and fisherfolk;b) Availability of rice and other staple food at affordable prices;c) Reduction of rural poverty and income inequality;

d) Reduction of the incidence of malnutrition;e) Reduction of rural unemployment and underemployment; andf) Improvement in land tenure of small farmers.

SEC. 15. Global Competitiveness and Sustainability. – The Department shall formulate medium- and long-termplans aimed at enhancing the global competitiveness and sustainability of the country in agriculture and fisheriesbased on, but not limited to, the following goals and indicators of development:

a) Increase in the volume, quality and value of agriculture and fisheries production for domestic consumption andfor exports;b) Reduction in post-harvest losses;c) Increase in the number/types and quality of processed agricultural and fishery products;d) Increase in the number of i nternational trading partners in agriculture and fishery products;e) Increase in the number of sustainable agriculture and fisheries firms engaged in domestic production,processing, marketing and export activities;f) Increase in and wider level of entrepreneurship among farmers and fisherfolk in the area;g) Increase in the number of farms engaged in diversified farming; and,h) Reduced use of agro-chemicals that are harmful to health and the environment.



SEC. 16. Global Climate Change. – The Department in coordination with the Philippine Atmospheric,Geophysical and Astronomical Service Administration (P.A.G.A.S.A.) and such other appropriate governmentagencies, shall devise a method of regularly monitoring and considering the effect of global climate changes,weather disturbances, and annual productivity cycles for the purpose of forecasting and formulating agricultureand fisheries production programs.

SEC. 17. Special Concerns. – The Department shall consider the following areas of concerns, among others, informulating the AFMP:

a) Strategies and programs aimed to achieve growth and profitability targets in the context of the constraints andchallenges of the World Trade Organization (WTO);b) Programs arising from the implementation of the Agrarian Reform Program;

c) Identification of SAFDZ;d) Infrastructure and market support for the SAFDZs;e) Infrastructure support to make agriculture and fisheries production inputs, information and technology readilyavailable to farmers, fisherfolk, cooperatives and entrepreneurs;f) Credit programs for small farmers and fisherfolk, and agricultural graduates;g) Comprehensive and integrated agriculture and fisheries research, development and extension services;h) Preservation of biodiversity, genetic materials and the environment;i) Adequate and timely response against environmental threats to agriculture and fisheries;

j) Rural non-farm employment;k) Access to aquatic resources by fisherfolk;l) Basic needs program for the impoverished sectors of society who will be affected by liberalization;m) Indigenous peoples;n) Rural youth;o) Women;p) Handicapped persons; andq) Senior citizens.

SEC. 18. Monitoring and Evaluation. – The Department shall develop the capability of monitoring the AFMPthrough a Program Benefit Monitoring and Evaluation System (PBMES). In addition, it can secure the services ofindependent consultants and external evaluators in order to assess its over-all impact. The Department shallmake periodic reports to the Congressional Oversight Committee on Agriculture and Fisheries Modernization.

SEC. 19. Role of Other Agencies. – All agencies of the government shall support the Department in theimplementation of the AFMP.

In particular, the Department of Public Works and Highways shall coordinate with the Department with respect tothe infrastructure support aspect of the plan in order to accomplish networking of related infrastructure facilities.

The Department of Interior and Local Government shall provide assistance to the Department in mobilizingresources under the control of local government units.

The Departments of Trade and I ndustry, Agrarian Reform, Science and Technology, and Environment andNatural Resources shall coordinate their investment programs and activities to complement the Department’simplementation of the AFMP.

The Department of Education, Culture and Sports, the Technical Education and Skills Development Authority,the Department of Health and the Department of Social Services and Development shall coordinate with theDepartment to determine the financial requirements of small farmers and fisherfolk to adjust to the effects ofmodernization as envisioned in the Agriculture and Fisheries Modernization Plan.

The Department of Environment and Natural Resources shall provide technical assistance and advice on thedelineation of the SAFDZ and on the development of the Department’s environmental protection plans.

The departments referred to above shall be required to identify i n their budget proposals the allocation intended

for the improvement of the environmental and other conditions affecting agriculture and fisheries.

Congressional initiatives shall also be coordinated by the Committees on Agriculture of both Houses tocomplement and enhance the programs and activities of the Department in the implementation of the AFMP.

Chapter 3

Credit

SEC. 20. Declaration of Policy. – It is hereby declared the policy of the State to alleviate poverty and promotevigorous growth in the countryside through access to credit by small farmers, fisherfolk, particularly the womeninvolved in the production, processing and trading of agriculture and fisheries products and the small andmedium scale enterprises (SMEs) and industries engaged in agriculture and fisheries.

Interest rates shall be determined by market forces, provided that existing credit arrangements with agrarianreform beneficiaries are not affected. Emphasis of the credit program shall be on proper management andutilization.

In this regard, the State enjoins the active participation of the banking sector and government financialinstitutions in the rural financial system.

SEC. 21. Phase-out of the Directed Credit Programs (DCPs) and Provision for the Agro-Industry ModernizationCredit and Financing Program (AMCFP). – The Department shall implement existing DCPs; however, theDepartment shall, within a period of four (4) years from the effectivity of this Act, phase-out all DCPs and depositall its loanable funds including those under the Comprehensive Agricultural Loan Fund (CALF) including newfunds provided by this Act for the AMCFP and transfer the management thereof to cooperative banks, ruralbanks, government financial institutions and viable NGOs for the Agro-Industry Modernization Credit FinancingProgram (AMCFP). Interest earnings of the said deposited loan funds shall be reverted to the AMCFP.

SEC. 22. Coverage. – An agriculture, fisheries and agrarian reform credit and financing system shall be designedfor the use and benefit of farmers, fisherfolk, those engaged in food and non-food production, processing andtrading, cooperatives, farmers’/fisherfolk’s organization, and SMEs engaged in agriculture and fisheries,

hereinafter 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 include the packaging and delivery of various creditassistance programs for the following:

a. Agriculture and fisheries production including processing of fisheries and agri-based products and farm inputs.b. Acquisition of work animals, farm and fishery equipment and machinery;c. Acquisition of seeds, fertilizer, poultry, livestock, feeds and other similar i tems;d. Procurement of agriculture and fisheries products for storage, trading, processing and distribution.e. Acquisition of water pumps and installation of tube wells for irrigation;f. Construction, acquisition and repair of facilities, for production, processing, storage, transportation,communication, marketing and such other facilities in support of agriculture and fisheries.g. Working capital for agriculture and fisheries graduates to enable them to engage in agriculture and fisheries-related economic activities;h. Agribusiness activities which support soil and water conservation and ecology-enhancing activities;i. Privately-funded and LGU-funded irrigation systems that are designed to protect the watershed;

j. Working capital for long-gestating projects; andk. Credit guarantees on uncollateralized loans to farmers and fisherfolk.

SEC. 24. Review of the mandates of Land Bank of the Philippines, Philippine Crop Insurance Corporation,Guarantee Fund For Small and Medium Enterprises, Quedan and Rural Credit Guarantee Corporation,

Agricultural Credit Policy Council. – The Department of Finance shall commission an independent review of thecharters and the respective programs of the Land Bank of the Philippines (LBP), Philippine Crop InsuranceCorporation (PCIC), Guarantee Fund for Small and Medium Enterprises (GSFME), Quedan and Rural CreditGuarantee Corporation (Quedancor), and Agricultural Credit Policy Council (ACPC), and recommend policychanges and other measures to induce the private sector’s participation in lending to agriculture and to improvecredit access by farmers and fisherfolk: Provided, That agriculture and fisheries projects with long gestation

period shall be entitled to a longer grace period in repaying the loan based on the economic life of the project.



The Land Bank of the Philippines, shall, in accordance with its original mandate, focus primarily on plans andprograms in relation to the financing of agrarian reform and the delivery of credit services to the agriculture andfisheries sectors, especially to small farmers and fisherfolk.

The review shall start six (6) months after the enactment of this Act. Thereafter, the review shall makerecommendations to the appropriate Congressional Committees for possible legislative actions and to theExecutive Branch for policy and program changes within six (6) months after submission.

SEC. 25. Rationalization of Credit Guarantee Schemes and Funds. - All existing credit guarantee schemes andfunds applicable to the agriculture and fishery sectors shall be rationalized and consolidated into an agricultureand Fisheries Credit Guarantee Fund. The rationalization and consolidation shall cover the credit guaranteeschemes and funds operated by the Quedancor, the GFSME and the Comprehensive Agricultural Loan Fund.

The Agriculture and Fisheries Credit Guarantee Fund shall be managed and implemented by the Quedancor:Provided, That representation to the Quedancor Board shall be granted to cooperatives, local government unitsand rural financial institution: Provided, further, That credit guarantee shall be given only to small-scaleagriculture and fisheries activities and to countryside micro-,small, and medium enterprises. It may also coverloan guarantees for purchase orders and sales contracts.

The Agriculture and Fisheries Credit Guarantee Fund shall be funded by at least ten percent (10%) of thefunding allocation for the AMCFP.

Chapter 4

Irrigation

SEC. 26. Declaration of Policy. – It is the policy of the State to use its natural resources rationally and equitably.The State shall prevent the further destruction of watersheds, rehabilitate existing irrigation systems and promote

the development of irrigation systems that are effective, affordable, appropriate, and efficient.In the choice of location-specific i rrigation projects, the economic principle of comparative advantage shallalways be adhered to.

SEC. 27. Research and Development. – Irrigation Research and Development (R & D) shall be pursued andpriority shall be given to the development of effective, appropriate and efficient irrigation and water managementtechnologies.

The Department shall coordinate with the Department of Environment and Natural Resources concerning thepreservation and rehabilitation of watersheds to support the irrigation systems.

SEC. 28. Criteria for Selection of Irrigation, Development Scheme. – The selection of appropriate scheme ofirrigation development shall be location-specific and based on the following criteria:

a. Technical feasibility;

b. Cost-effectiveness;c. Affordability, low investment cost per unit area;d. Sustainability and simplicity of operation;e. Recovery of operation and maintenance cost;f. Efficiency in water use;g. Length of gestation period; andh. Potential for increasing unit area productivity.

All irrigation projects shall, in addition to the criteria enumerated above, be subjected to a social cost-benefitanalysis.

SEC. 29. Simplified Public Bidding. – The construction, repair, rehabilitation, improvement, or maintenance ofirrigation projects and facilities shall follow the Commission on Audit (COA) rules on simplified public bidding.

Irrigation projects undertaken by farmers, farmers’ organizations and other private entities whose funding ispartly or wholly acquired by way of loan from government financial institutions shall not be subject to the biddingrequirements of the government.

SEC. 30. National Irrigation Systems (NIS). - The National Irrigation Administration (NIA) shall continue to plan,design, develop, rehabilitate and improve the NISs. It shall continue to maintain and operate the major irrigationstructures including the headworks and main canals.

In addition, the NIA is mandated to gradually turn over operation and maintenance of the National IrrigationSystem’s secondary canal and on-farm facilities to Irrigator’s Associations.

SEC. 31. Communal Irrigation Systems (CIS). – The Department shall, within five (5) years from the effectivity ofthis Act, devolve the planning, design, and management of CISs, including the transfer of NIA’s assets andresources in relation to the CIS, to the LGUs. The budget for the development, construction, operation andmaintenance of the CIS and other types of irrigation systems shall be prepared by and coursed through theLGUs. The NIA shall continue to provide technical assistance to the LGUs even after complete devolution 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 the promotion of aprivate sector-led development of minor irrigation systems, such as Shallow Tube Wells (STWs), Low-Lift pumps(LLPs) and other inundation systems. The plan shall be included in the Short-term Agriculture and FisheriesModernization Plan.

SEC. 33. Other Irrigation Construction Schemes. – The Government shall also encourage the construction ofirrigation facilities through other viable schemes for the construction of irrigation such as build-operate-transfer,build-transfer and other schemes that will fast tract the development of irrigation systems.

SEC. 34. Guarantee of the National Government. – To make build-operate-transfer (BOT) projects for irrigationattractive to proponents, the national government shall issue the needed payment guarantee for BOT projectswhich shall answer for default of the National Irrigation Administration. Such amounts needed to answer for thepayment guarantee is hereby to be appropriated.

SEC. 35. Irrigation Service Fees (ISF) – Upon effectivity of this Act, the NIA shall immediately review the ISFrates and recommend to the Department reasonable rates within six (6) months from the effectivity of this Act.

SEC. 36. Monitoring and Evaluation. – The Department shall monitor the implementation of R & D programs andirrigation projects. The Department shall review all existing irrigation systems every four (4) years, to determinetheir viability or ineffectiveness. The Department shall employ the services of independent evaluators to assessto over-all impact of the country’s irrigation development.

SEC. 37. Exemption from Election Ban. – The repair, maintenance and rehabilitation of irrigation facilities as wellas BOT irrigation projects shall be exempted from the scope of the election ban on public works.

Chapter 5

Information and Marketing

Support ServiceSEC. 38. Declaration of Policy. - It is hereby declared the policy of the State to empower Filipino farmers andfisherfolk, particularly the women, involved in agriculture and fisheries through the provision of timely accurateand responsive business information and efficient trading services which will link them to profitable markets fortheir products. They shall likewise be given innovative support toward the generation of maximum incomethrough assistance in marketing.

SEC. 39. Coverage. – A market information system shall be installed for the use and benefit of, but not limited to,the farmers and fisherfolk, cooperatives, traders, processors, the LGUs and the Department

SEC. 40. The Marketing Assistance System. - The Department shall establish a National Marketing AssistanceProgram that will immediately lead to the creation of a national marketing umbrella in order to ensure thegeneration of the highest possible income for the farmers and fisherfolk or groups of farmers and fisherfolk,matching supply and demand in both domestic and foreign markets.

SEC. 41. National Information Network. – A National Information Network (NIN) shall be set up from theDepartment level down to the regional, provincial and municipal offices within one (1) year from the approval ofthis Act taking into account existing information networks and systems.



The NIN shall likewise link the various research institutions for easy access to data on agriculture and fisheriesresearch and technology. All departments, agencies, bureaus, research institutions, and local government unitsshall consolidate and continuously update all relevant information and data on a periodic basis and make suchdata available on the Internet.

SEC. 42. Information and Marketing Service. – The NIN shall provide information and marketing services relatedto agriculture and fisheries which shall include the following:

a) Supply data;b) Demand data;c) Price and price trends;d) Product standards for both fresh and processed agricultural and fisheries products;

e) Directory of, but not limited to, cooperatives, traders, key market centers, processors and business institutionsconcerned with agriculture and fisheries at the provincial and municipal levels;f) Research information and technology generated from research institutions involved in agriculture and fisheries;g) International, regional and local market forecasts; andh) Resource accounting data.

SEC. 43. Initial Set-up. – The Department shall provide technical assistance in setting-up the NIN at the locallevel through the cooperatives and the LGUs: Provided, That, at the local level, a system that will makemarketing information and services, related to agriculture and fisheries will be readily available in thecity/municipal public market for the benefit of the producers, traders and consumers.

SEC. 44. Role of Government Agencies. - The Bureau of Agricultural Statistics will serve as the centralinformation server and will provide technical assistance to end-users in accessing and analyzing product andmarket information and technology.

The Department of Transportation and Communications shall provide technical and infrastructure assistance tothe Department in setting up the NIN.

LGUs shall coordinate with the Department for technical assistance in order to accelerate the establishment andtraining of information end-users in their respective jurisdictions.

The Cooperative Development Authority shall coordinate with the Department for technical assistance in order toprovide training assistance to cooperatives in the use and analysis of market information and technology.

SEC. 45. Role of Private Sector. – The NIN shall likewise be accessible to the private sector engaged inagriculture and fisheries enterprises. The Department shall formulate guidelines and determine fees for privatesector entities that use the NIN.

Chapter 6

Other InfrastructureSEC. 46. Agriculture and Fisheries Infrastructure Support Services. – The Department of Public Works andHighways, the Department of Transportation and Communications, the Department of Trade and Industry andthe LGUs shall coordinate with the Department to address the i nfrastructure requirements in accordance with this

Act: Provided, That, the Department and the LGUs shall also strengthen its agricultural engineering groups toprovide the necessary technical and engineering, support in carrying out the smooth and expeditiousimplementation of agricultural infrastructure projects.

SEC. 47. Criteria for Prioritization. – The prioritization of government resources for rural infrastructure shall bebased on the following criteria:

a) Agro-industrial potential of the area;b) Socio-economic contributions of the investments in the area;c) Absence of public investment in the area; and

d) Presence of agrarian reform beneficiaries and other small farmers and fi sherfolk in the area.

SEC. 48. Public Infrastructure Facilities. - Public infrastructure investments shall give preference to the kind,type, and model of infrastructure facilities that are cost-effective and will be useful for the production,

conservation, and distribution of most commodities and should benefit the most number of agriculture andfisheries producers and processors.

SEC. 49. Private Infrastructure Facilities. – For instrastructure facilities primarily benefiting private investors, theState shall facilitate the purchase and use of such facilities and shall keep to the minimum the bureaucraticrequirements for the these type of investments. Private investors include cooperatives or corporations ofagriculture and fisheries producers and processors.

SEC. 50 Public Works Act. – The Department of Public Works and Highways shall coordinate with theDepartment for the purpose of determining the order of priorities for public works funded under the Public Works

Act which directly or indirectly affect agriculture and fisheries.

SEC. 51. Fishports, Seaports and Airports. - The Department of Transportation and Communications, PhilippinePorts Authority and Philippine Fisheries Development Authority shall coordinate with the Department for thepurpose of determining priority fishports, seaports and airports and facilitating the installation of bulk-handlingand storage facilities, and other post-harvest facilities needed in order to enhance the marketing of agricultureand fisheries products: Provided, That fishports, seaports and airports are also equipped with quarantine,sanitary and phytosanitary centers. The department of Transportation and Communications (DOTC) shall havethe mandate to cancel arrastre and cargo handling franchises among operators whom it deems inefficient and/orineffective owing, but not limited to, a past history of under-capitalization, lack of equipment and lack ofprofessional expertise. The DOTC shall recommend to the Philippine Ports Authority and consult with ship-owners and ship-operators in assessing the cargo-handling capabilities of cargo operators prior to extending newfranchises or awards.

SEC. 52. Farm-to-Market Roads. – The Department shall coordinate wit the LGUs and the resident-farmers andfisherfolk in order to identify priority locations of farm-to-market roads that take into account the number of

farmers and fisherfolk, and their families who shall benefit therefrom and the amount, kind and importance ofagriculture and fisheries products produced in the area.

Construction of farm-to-market roads shall be apriority investment of the LGUs which shall provide a counterpartof not less than ten percent (10%) of the project cost subject to their IRA level.

SEC. 53. Rural Energy - The Department shall coordinate with the Department of Energy (DOE), the Departmentof Public Works and Highways (DPWH), the National Electrification Administration (NEA) and the National PowerCorporation (NAPOCOR) for the identification and installation of appropriate types of energy sources particularlyin the use of non-conventional energy sources for the locality in order to enhance agriculture and fisheriesdevelopment in the area.

SEC. 54. Communications Infrastructure. – The Department shall coordinate with the DOTC to facilitate theinstallation of telecommunication facilities in priority areas, in order to enhance agriculture and fisheriesdevelopment.

SEC. 55. Water Supply System. - The Department shall coordinate with the DPWH and the LGUs for theidentification and installation of water supply system in the locality for agro-industrial uses to enhance agricultureand fisheries development in the area.

SEC. 56. Research and Technology Infrastructure – The Department in coordination with other governmentagencies shall give priority and facilitate the funding of infrastructure necessary for research ventures such asfarm laboratories and demonstration farms with state colleges and universities that derived their core funds fromthe Department.

SEC. 57. Post-Harvest Facilities. - The Department shall coordinate with the Bureau of Post-Harvest forResearch and Extension and the Post-harvest Horticulture, Training and Research Center of the University of thePhilippines Los Banos, to identify appropriate post-harvest facilities and technology needed to enhanceagriculture and fisheries development in the area.

SEC. 58. Public Market and Abattoirs. - The Department shall encourage the LGUs to turn over the managementand supervision of public markets and abattoirs to market vendors’ cooperatives and for that purpose, theappropriation for post-harvest facilities shall include the support for market vendors’ cooperatives.



The Department shall coordinate with the LGUs in the establishment of standardized market systems and use ofsanitary market facilities, and abattoirs, intended to ensure food safety and quality.

All markets shall have a sanitation unit, proper and adequate drainage and sewerage system, ample watersupply, public toilets with lavatories, garbage receptacles, ice plants and cold storage, adequate lighting andventilation and supply of electricity to ensure cleanliness; and sanitation. Price monitoring bulletin boards forselected commodities and weighting scales accessible to the public shall also be established.

Proper protection and preservation of agriculture and fisheries products being sold in the market shall also beobserved. All foods which required no further cooking shall be wrapped, covered, or enclosed in containers topreserve the freshness and prevent contamination. Selling of products on market floors shall be prohibited.

SEC. 59. Agricultural Machinery. - The Department shall give priority to the development and promotion ofappropriate agricultural machinery and other agricultural mechanization technologies to enhance agriculturalmechanization in the countryside.

Chapter 7

Product StandardizationAnd Consumer Safety

SEC. 60. Declaration of Policy. - It is the policy of the State that all sectors involved in the production,processing, distribution and marketing of food and non-food agricultural and fisheries products shall adhere to,and implement the use of product standards in order to ensure consumer safety and promote thecompetitiveness of agriculture and fisheries products.

SEC. 61. Bureau of Agriculture and Fisheries Product Standards. – The Department, within six (6) months afterthe approval of this Act and in consultation with the Department of Trade and Industry and the Bureau of Foodand Drug, shall establish the Bureau of Agriculture and Fisheries Products Standards (BAFPS).

SEC. 62. Coverage . - The BAFPS shall set and implement standards for fresh, primary- and secondary-processed agricultural and fishery products.

SEC. 63. Powers and Functions. - The BAFPS shall have the following powers and functions.

a) Formulate and enforce standards of quality in the processing preservation, packaging, labeling, importation,exportation, distribution and advertising of agricultural and fisheries products;b) Conduct research on product standardization, alignment of the local standards with the internationalstandards; andc) Conduct regular inspection of processing plants, storage facilities, abattoirs, as well as public and privatemarkets in order to ensure freshness, safety and quality of products.

SEC. 64. Pool of Experts and Advisers. – The BAFPS may coordinate, seek the services of, and consult with

both private and governmental agencies, research institutes, educational establishments and such otherindividuals and entities with expertise in the field of product standards and consumer safety.

The Department of Trade and Industry, the Food and Nutrition Research Institute, and the Bureau of Food andDrug Administration shall provide technical advice and form part of the pool of experts/advisers of the BAFPS.

TITLE 2

HUMAN RESOURCE DEVELOPMENT

SEC. 65. Declaration of Policy. – It is hereby declared the policy of the State to give priority to education andtraining on science and technology in order to accelerate social progress and promote total human liberation anddevelopment.

The State shall promote industrialization and full employment, based on sound agriculture and fisheries

development and agrarian reform, through industries that make full and efficient use of human and naturalresources.

SEC. 66. National Agriculture and Fisheries Education System (NAFES). – The Commission on HigherEducation (CHED), in coordination with the Department and appropriate government agencies, shall establish aNational Agriculture and Fisheries Education System (NAFES) which shall have the following objectives:

a) To establish, maintain and support a complete and integrated system of agriculture and fisheries educationrelevant to the needs of the economy, and community and society;b) To modernize and rationalize agriculture and fisheries education from the elementary to the tertiary levels;c) To unify, coordinate and improve the system of implementation of academic programs that are geared towardachieving agriculture and fisheries development in the country; andd) To upgrade the quality, ensure sustainability and promote global competitiveness, at all levels, of agricultureand fisheries education.

SEC. 67. Education Program for Elementary and Secondary Levels. - There is hereby established an Agricultureand Fisheries Education Program, under the NAFES, specially designed for elementary and secondary levels.The Program shall be formulated, organized and implemented by the DECS with the following objectives:

a) to develop appropriate values that form the foundation for sustained growth in agriculture and fisheriesmodernization;b) to increase the attractiveness of agriculture and fisheries education, so that more young and talented personwill look at agriculture and fisheries as an acceptable option for career and livelihood;c) to promote appreciation of science in agriculture and fisheries development;d) to develop among students, positive attitudes towards entrepreneurship and global competition in theagriculture and fisheries business;e) to improve t he present curriculum in the elementary and secondary levels by emphasizing the core valuesnecessary for agriculture and fisheries modernization; andf) to develop an outreach program where students, parents and the schools become instruments in effecting

positive changes in the pupil’s home and community.

SEC. 68. Post-Secondary Education Program. - There is hereby established a Post-Secondary EducationProgram for Agriculture and Fisheries under the NAFES, which shall be formulated and developed by TESDA incoordination with the appropriate government agencies and the private sector. The program shall include, amongothers, the following:

a) a mechanism for a flexible process of curriculum development;b) integration of the dual training system in the various agricultural curricula and training programs;c) integration of entrepreneurship and global competitiveness in the agro-fisheries curricula;d) institutionalizing agriculture and fisheries skills standards and technician testing and certification.e) regular upgrading of learning/training facilities, school buildings, laboratory equipment; andf) development of a system for the strict enforcement of school regulations regarding standards andrequirements.

SEC. 69. Network of National Centers of Excellence for Tertiary Education. – There is hereby established aNetwork of National Centers of Excellence in Agriculture and Fisheries Education, composed of qualified publicand private colleges and universities, duly accredited as National Centers of Excellence (NCE) in the field ofagriculture and fisheries.

For this purpose, the CHED shall formulate and implement a system of accreditation: Provided, That not morethan one provincial institute in every province and no more than one national university in each field in everyregion shall be accredited as such: and Provided, further, That the system shall be based on the followingcriteria:

a) institutional accessibility, population, economic contribution of agriculture and fisheries in the community, andthe needs or unique requirements of the area;b) quantity and quality of research st udies conducted;c) degree of utilization of research results;

d) quantity and quality of faculty members;e) type of facilities;f) linkage with international organizations; andg) potential contribution to agriculture and fisheries development in the target area.



SEC. 70. Rationalization Plan. – For the purpose of upgrading and maintaining a high degree of academicexcellence in the fields of agriculture and fisheries, all existing public and private colleges and universities thatare not hereinafter designated and accredited as centers of excellence shall be given adequate time to redirectits program to non-agriculture and/or non-fisheries areas needed by the province or region and/or merge theirprogram with accredited NCEs in accordance with the Rationalization Plan to be jointly formulated by CHED andthe Philippine Association of State Universities and Colleges (PASUC) upon consultation with the institutionconcerned.

The Rationalization Plan shall include a policy for the effective utilization of affected personnel and facilities, andshall not be construed as to result in the decrease of the budget allocation for the state universities and collegesconcerned.

SEC. 71. Counterpart Funding from LGUs. - The LGUs shall, within two (2) years from the effectivity of This Act,provide at least ten percent (10%) of the Maintenance and Other Operating Expenses (MOOE) budget for theoperation of the provincial institutes within their area of responsibility.

In consultation with the LGUs, the CHED shall develop a provincial-national partnership scheme for a reasonablesharing of financial support taking into account social equity factors for poor provinces.

SEC. 72. National Integrated Human Resource Development Plan in Agriculture and Fisheries. - The CHED, incoordination with the Department and appropriate government agencies, shall formulate, develop and implementan integrated human resource development plan in agriculture and fisheries which shall serve as an instrumentthat will provide over-all direction i n setting priorities in curricular programs, enrollment, performance targets, andinvestment programs.

SEC. 73. Output-Oriented Performance Standards. - In order to ensure institutional accountability, efficiency, andquality, there shall be formulated and developed an Output-Oriented Performance Standards which shall serve

as the primary instrument for institutional evaluation.

For this purpose, all public and private universities and colleges, that are designated as centers of excellence,shall cause to be installed a computerized monitoring and evaluation system that periodically collects andregularly measures variables indicating institutional performance based on the Output-Oriented PerformanceStandards.

SEC. 74. Evaluation System. – Not later than one (1) year from the effectivity of this Act, the CHED shallestablished a baseline information using the Output-Oriented Performance Standards referred to in Section 73 ofthis Title. Once every five (5) years thereafter, all designated NCEs in agriculture and fisheries shall be subject toa third party evaluation.

The evaluation shall i nclude, among others, management and educational experts of national stature andrepresentatives of key sectors of the agriculture and fisheries industries, as well as representatives of theDepartment, the Department of Environment and Natural Resources, the Department of Science andTechnology, and the National Economic and Development Authority.

SEC. 75. Agriculture and Fisheries Board. – There shall be created an Agriculture and Fisheries Board in theProfessional Regulation Commission to upgrade the Agriculture and Fisheries profession.

Those who have not passed the Civil Service Examination for Fisheries and Agriculture but have served theindustry in either private or public capacity for not less than five (5) years shall be automatically granted eligibilityby the Board of Examiners.

The first board of examination for B.S. Fi sheries and/or Agriculture Graduates shall be conducted within one (1)year from the approval of this Act.

SEC. 76. Continuing Agriculture and Fisheries Education Program. - The Commission on Higher Education, theDepartment of Education, Culture and Sports and Technical Education and Skills Development Authority, incoordination with the Department and the public and private universities and colleges, shall formulate and

develop a National and Integrated Continuing Agriculture and Fisheries Education Program, which shall addressthe current education and training requirements of teachers, professors and educators in agriculture andfisheries.

For this purpose, pre-service and in-service training of teachers in Home Economics Livelihood Education(HELE) for the primary level and Technology and Home Economics (THE) for the secondary level, shall beupgraded.

SEC. 77. Scholarship Program. - The CHED, in coordination with public and private universities and colleges,TESDA and the DBM shall develop a national scholarship program that provides opportunities for deservingacademic staff to pursue advanced degrees in agriculture and fisheries. Where appropriate, such scholarshipprogram shall also provide opportunities for graduate work in foreign universities.

SEC. 78. Merit System. - To promote the development of scientific excellence and academic scholarship, thepublic and private universities and colleges, in cooperation with the CHED and the DBM, shall institute an output-

oriented unified system of promotion for academic personnel.

SEC. 79. Budgetary Allocation Scheme. - The Budgetary Allocation Scheme for NAFES shall be as follows:

a) The current appropriation or budgets of state universities and colleges, that are herein designated as NCEs,shall continue and shall be modified and adjusted in succeeding years in order to meet the standards of therationalized programs of the institutions as approved by Congress and shall be included in the annual General

Appropriations Act;

b) NCEs that are created under this Act shall likewise be provided with budgetary support based on theirprograms and new staffing pattern as approved by DBM and shall be included in the annual General

Appropriations Act.

TITLE 3

RESEARCH DEVELOPMENT AND EXTENSION

Chapter 1

Research and Development

SEC. 80. Declaration of Policy - It is hereby declared the policy of the State to promote science and technologyas essential for national development and progress.

The State shall likewise give priority to research and development, invention, innovation, and their utilization andto science and technology education, training, and services. In addition to appropriate and relevant technology,the State shall support indigenous and self-reliant scientific and technological capabilities, and their applicationto the country’s productive system and national life.

SEC. 81. The National Research and Development System in Agriculture and Fisheries. - The Department, incoordination with the Department of Science and Technology 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 approval of this Act: Provided, That fisheries researchand development shall be pursued separately, from but in close coordination with that of agriculture.

SEC. 82. Special Concerns in Agriculture and Fisheries Research Services. - Agriculture and Fisheries Researchand Development activities shall be multidisciplinary and shall involve farmers, fisherfolk and their organizations,and those engaged in food and non-food production and processing, including the private and public sectors.

Research institutions and centers shall enjoy autonomy and academic freedom. The Department, in collaborationwith the Department of Science and Technology and other appropriate agencies, shall harmonize its merit andoutput-oriented promotion system governing the scientific community in order to promote increased researchexcellence and productivity and provide the government research system a competitive edge in retaining i tsscientific 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 andextension activities, funding shall be based on the following guidelines:



a) Allocation of multi-year budgets which shall be treated as research and development grants;b) The budget for agriculture and fisheries research and development shall be at least one percent (1%) of thegross value added (GVA) by year 2001 allocating at least one percent (1%) of the total amount of 1999. TheDepartment of Finance (DOF) in consultation with the Department shall formulate revenue enhancementmeasures to fund this facility.c) At least twenty percent (20%) shall be spent in support of basic research and not more than eighty percent(80%) shall be used for applied research and technology development, of which at least ten percent (10%) shallbe used for technology packaging and transfer activities.d) A science fund shall be established from which the scientific community in agriculture and fisheries shall drawits financial resource for sustained career development: Provided, That only the interest earnings of the fundsshall be used.

The Department and other research agencies, in the national interest, are encouraged to go into co-financingagreements with the private sector in the conduct of research and development provided that the terms andconditions of the agreement are beneficial to the country.

SEC. 84. Excellence and Accountability in Research and Development. - The Department, in collaboration withthe Department of Science and Technology and other appropriate government agencies shall formulate thenational guidelines in evaluating research and development activities and institutions, which shall involve anindependent and interdisciplinary team of coll egial reviewers and evaluators.

SEC. 85. Communication of Research Results and Research Extension Linkage. - Research information andtechnology shall be communicated through the National Information Network (NIN).

All government agencies including the state colleges and universities and private educational institutionsselected as NCEs shall be computerized, networked, provided with regular updated information, and shall

likewise provide, through the NIN, results of research and development activities and current availabletechnology relating agriculture and fisheries.

Chapter 2

Extension Services

SEC. 86. Declaration of Policy. - It is hereby declared the policy of the State to promote science and technologyas essential for national development and progress. The State shall give priority to the utilization of researchresults through formal and non-formal education, extension, and training services. It shall support thedevelopment of a national extension system that will help accelerate the transformation of Philippine agricultureand fisheries from a resource-based on a technology-based industry.

SEC. 87. Extension Services. - Agriculture and Fisheries extension services shall cover the following majorservices to the farming and fishing community.

a) Training services;b) Farm or business advisory services;c) Demonstration services; andd) Information and communication support services through tri -media.

SEC. 88. Special Concerns in the Delivery of Extension Services. - The delivery of Agriculture and FisheriesExtension Services shall be multidisciplinary and shall involve the farmers, fisherfolk, and their organizations,and those engaged in food and non-food production and processing, including the private and public sectors.

There shall be a national merit and promotion system governing all extension personnel, regardless of source offunding, to promote professionalism and achieve excellence and productivity in the provision of the governmentextension services.

SEC. 89. The National Extension System for Agriculture and Fisheries (NESAF). – The Department, in

coordination with the appropriate government agencies, shall formulate a National Extension System for Agriculture and Fisheries.

The National Extension System for Agriculture and Fisheries shall be composed of three (3) subsystems:

a) The national government subsystem which directly complements;b) The local government subsystems; andc) The private sector subsystem.

SEC. 90. The Role of Local Government Units. - The LGUs shall be responsible for delivering direct agricultureand fisheries extension services.

The provincial government shall integrate the operations for the agriculture extension services and shallundertake an annual evaluation of all municipal extension programs.

The extension program of state colleges and universities shall primarily focus on the improvement of thecapability of the LGU extension service by providing.

a) Degree and non-degree training programs;b) Technical assistance;c) Extension cum research activities;d) Monitoring and evaluation of LGU extension projects; ande) Information support services through the tri-media and electronics.

SEC. 91. Role of the Private Sector i n Extension. - The Department shall encourage the participation of farmersand fisherfolk cooperatives and associations and others in the private sector in training and other complementaryextension services especially in community organizing, use of participatory approaches, popularization of trainingmaterials, regenerative agricultural technologies, agribusiness and management skills.

The Department is hereby authorized to commission and provide funding for such training and extensionservices undertaken by the private sector.

SEC. 92. The Role of Government Agencies. - The Department together with the state colleges, and universities

shall assist in the LGU’s extension system by improving their effectiveness and efficiency through capability-building and complementary extension activities such as:

a) technical assistance;b) training of LGU extension personnel;c) improvement of physical facilities;d) extension cum research; ande) information support services

SEC. 93. Funding for Extension Activities. – Extension activities shall be support by the following measures;

a) allocation of multi-year budget that shall be treated as grants;b) allow transfer of funds from the Department to the local government units as extension grants, andc) the budget for agriculture and fisheries extension services shall be at least one percent (1%) of the gross

value added (GVA) by year 2001.SEC. 94. Excellence and Accountability in Extension. - The Department shall formulate the guidelines inevaluating extension activities and institutions, which shall involve an independent and interdisciplinary team ofcollegial reviewers and evaluators.

SEC. 95. Extension Communication Support for LGUs. - The Department, in coordination with the public andprivate universities and colleges, shall develop an integrated multimedia support for national and LGU extensionprograms. The Department shall assist the LGUs in the computerization of communication support services toclients and linkages to the NIN.

TITLE 4

RURAL NON-FARM EMPLOYMENT

Chapter 1

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 modernizes the number of workers employed in itsagricultural sector declines. It is therefore necessary to formulate policies and implement programs that will



employ workers efficiently in rural areas in order to improve their standard of living, and reduce their propensityto migrate to urban areas.

SEC. 97. Objectives. - Rural non-farm employment aims to

a) promote a basic needs approach to rural development;b) make rural workers more adaptable and flexible through education and training;c) promote rural industrialization and the establishment of agro-processing enterprises in rural communities; andd) increase the income of rural workers.

Chapter 2

The Basic Needs Program

SEC. 98. Principles. - The Department, in coordination with the appropriate government agencies, shallformulate the Basic Needs Programs to create employment and cushion the effects of liberalization based on t hefollowing principles:

a) No credit subsidies shall be granted. The normal rules of banking shall apply to all enterprises involved,provided that existing credit arrangements with ARBs shall not be affected.b) Enterprises can use training, information, advisory and related services of the Government free of charge.c) The participation of the private sector shall be voluntary.

Teams composed of specialists from government agencies and the private sectors shall develop pilot programsin selected locales to establish the planning, implementation and evaluation procedures.

SEC. 99. Participation of Government Agencies. - The replication of the program shall be the responsibility of thelocal government units concerned in collaboration with the appropriate government agencies, and the private

sector. The local government units shall bear the costs of promoting and monitoring the basic needs program forwhich their IRA shall be increased accordingly as recommended by the Secretary of the Department: Provided,That the appropriate national government agencies shall continue to provide the necessary technical as well asfinancial assistance to the LGUs in the replication of the program.

The Cooperatives Development Authority shall encourage the establishment and growth of associations andcooperatives as vehicles for the stable expansion of basic needs enterprises.

The Department of Education, Culture and Sports, Department of Health, and the Technical Education and SkillsDevelopment Authority shall coordinate with the Department and Congress in the review, rationalization andreallocation of their regular budgets as well as their budgets under the GATT-related measures fund to financeeducation, training, health and other welfare services for farmers and fisherfolk.

Chapter 3

Rural IndustrializationIndustry Dispersal Program

SEC. 100. Principles. – Rural industrialization and industry dispersal programs shall be based on the interplay ofmarket forces. The Board of Investments (BOI) is hereby required to give the highest priority to the grant ofincentives to business and industries with l inkages to agriculture.

SEC. 101. Role of Government Agencies. - The appropriate government agencies, under the leadership of theLGUs concerned, shall provide integrated services and information to prospective enterprises under the one-stop-shop concept.

Local government units are authorized to undertake investment and marketing missions provided that the costsof such missions are borne by the LGUs concerned. In making their land use plans, the LGUs, in consultationwith the appropriate government agencies concerned, shall identify areas for industrial parks.The Department shall coordinate with the Department of Trade and Industry, in particular, the Board of

Investment, in the formulation of investment priorities for rural areas.

The Regional Wage Boards shall consult participating enterprises in this program before they issue wage orders.

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 farmers, fisherfolk andlandless workers during periods when they are not engaged in agricultural activities.

SEC. 103. Financing. – Except for basic infrastructure and other goods that benefit all citizens, the facilities ofthis program should be undertaken and financed by the private sector.

Chapter 4

Training of Workers

SEC. 104 Role of TESDA. - TESDA shall organize local committees that will advise on the scope, nature andduration of training for the above-mentioned programs.

TESDA is authorized to request the additional budgetary resources for these programs: Provided, That after areasonable period, the task of coordinating the training is transferred to the LGUs concerned.

SEC. 105. Role of the DENR. – The Department and the DENR shall organize the training of workers in coastalresources management and sustainable fishing techniques.

SEC. 106. Role of the Technology and Livelihood Resource Center (TLRC). - The TLRC shall undertake fieldtraining 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 appropriategovernment agencies concerned, shall plan and implement special training projects for women for absorption inthe basic needs and rural industrialization programs.

TITLE 5

TRADE AND FISCAL INCENTIVES

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 Department in consultationwith the Department of Finance and the Board of Investment, shall, for five (5) years after the effectivity of this

Act, be exempted from the payment of tariff and duties for the importation of all types of agriculture and fisheriesinputs, equipment and machinery such as, but not limited to, fertilizer, insecticide, pesticide, tractor, trailers,trucks, farm implements and machinery, harvesters, threshers, hybrid seeds, genetic materials, sprayers,packaging machinery and materials, bulk-handling facilities such as conveyors and mini loaders, weighingscales, harvesting equipment, spare parts of all agricultural equipment, fishing equipment and parts thereof,refrigeration equipment, and renewable energy systems such as solar panels: Provided, however, That theimported agricultural 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, within ninety(90) days from the effectivity of this Act, formulate the implementing rules and regulations governing theimportation of agriculture and fishery inputs, equipment and machinery.

SEC. 110. Any person, partnership, corporation, association and other juridical entity found circumventing theprovisions of Section 109 of this Act shall suffer the penalty of imprisonment 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 of theimported materials, or both, at the discretion of the court, and the accessory penalties of confiscation of theimported goods in favor of the 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 Section 109 shall sufferthe penalty of imprisonment prescribed in this section.

The importation of goods equivalent to or exceeding the declared assets of the enterprise, partnership, or theauthorized capital stock in case of corporations, and/or resale of the imported goods shall be a prima facieevidence of the violation of the provision of Section 109 of this Act.



GENERAL PROVISIONS

SEC. 111. Initial Appropriation.- For the first year of implementation of this Act, the amount of Twenty billi onpesos (P20,000,000,000.00) is hereby appropriated. The Department is hereby authorized to re align i tsappropriations 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 as follows:

1) Thirty percent (30%) for irrigation

2) Ten percent (10%) for post-harvest facilities: Provided, That the Secretary of Agriculture may invest up to fiftypercent (50%) of the said amount to fund post-harvest facilities of cooperatives, especially market vendors’cooperatives, where said cooperatives exist and are operational: Provided, further, That if no cooperatives areoperational, said amount shall fund the post-harvest facilities of the market-assistance system:

3) Ten percent (10%) for other infrastructure i ncluding fishports, seaports, and airports, farm-and-coast-to-marketroads, rural energy, communications, infrastructure, watershed rehabilitation, water supply system, research andtechnology infrastructure, public markets and abattoirs;

4) Ten percent (10%) for the Agro-industry Modernization Credit and Financing Program (AMCFP) to bedeposited by the Department in participating rural-based public and private financial institutions provided that noless than fifty percent (50%) of said funds shall be deposited in rural banks and cooperative banks;

5) Eight percent (8%) for the implementation of the Farmer-Fisherfolk Marketing Assistance System and supportto market vendors’ cooperatives.

6) Ten percent (10%) for research and development, four percent (4%) of which shall be used to support theBiotechnology Program;

7) Five percent (5%) for capability-building of farmers and fisherfolk organizations and LGUs for the effectiveimplementation of the agriculture and fisheries programs at the local level;

8) Six percent (6%) for salary supplement of Extension Workers under the LGUs;

9) Five percent (5%) for NAFES, for the upgrading of the facilities of State Universities and Colleges that will bechosen as national center of excellence in agriculture and fisheries education;

10) Four percent (4%) for the National Information Network (NIN) consisting of both the national and local levels;

11) One-and-three-fourth percent (1.75%) for SUC- and TESDA- administered Rural Non-Farm EmploymentTraining; and

12) One-fourth percent (0.25%) for the identification of the SAFDZs.

SEC. 112. Continuing Appropriation. – The Department of Budget and Management (DBM) is hereby mandated

to include annually in the next six (6) years, in the President’s program of expenditures for submission toCongress, and release, an amount not less that Seventeen billion pesos (P17,000,000,000.00), for theimplementation of this Act.

Additional funds over and above the regular yearly budget of the Department shall be sourced from twentypercent (20%) of the proceeds of the securitization of government assets, including the Subic, Clark and otherspecial economic zones.

Other sources of funds shall be from he following:

a) Fifty Percent (50%) of the net earnings of the Public Estates Authority;b) Loans, grants, bequest, or donations, whether from local or foreign sources;c) Forty Percent (40%) of t he TESDA Skills Development Fund;d) Net proceeds from the privatization of the Food Terminal, Inc. (FTI), the Bureau of Animal Industry (BAI), the

Bureau of Plant Industry (BPI), and other assets of the Department that will be identified by the DA Secretary andrecommended to the President for privatization;e) Proceeds from the Minimum Access Volume (MAV) in accordance with the provision of Republic Act No.8178;

f) Poverty Alleviation Fund; andg) Fifty Percent (50%) of the Support Facilities and Services Fund under Republic Act No. 6657.

SEC. 113. Implementing Rules and Regulations. – The Secretary, within ninety (90) working days after theeffectivity of this Act, together with the Department of Agrarian Reform (DAR), Department of Environment andNatural Resources (DENR), Department of Finance (DOF), Department of Science and Technology (DOST),Department of Trade and Industry (DTI), Commission on Higher Education (CHED), Technical Education andSkills Development Authority (TESDA), Department of Education Culture and Sports (DECS), Department ofSocial Services and Development (DSSD), National Economic and Development Authority (NEDA), Departmentof Budget and Management (DBM), Department of Labor and Employment (DOLE), Commission on Audit(COA), Civil Service Commission (CSC), in consultation with other agencies concerned, farmers, fisherfolk andagri-business organization, and in coordination with the Congressional Oversight Committee on Agriculture and

Fisheries Modernization, shall promulgate the rules and regulations for the effective implementation of this Act.

The Secretary shall submit to the Committee on Agriculture of both Houses of Congress copies of theimplementing rules and regulations within thirty (30) days after their promulgation.

Any violation of this section shall render the official/s concerned liable under Republic Act No. 6713 otherwiseknown as the ―Code of Conduct and Ethical Standards for Public Officials and Employees‖ and other existingadministrative and/or criminal laws.

SEC. 114. Congressional Oversight Committee on Agricultural and Fisheries Modernization. – A CongressionalOversight Committee on Agricultural and Fisheries Modernization is hereby created to be composed of theChairs of the Committee on Agriculture of both Houses, six (6) members of the Hose of Representatives and six(6) members of the Senate, to be designated respectively by the Speaker of the House and the President of theSenate, who shall endeavor to have 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, respectively,the Chair and Co-Chair of the Oversight Committee. The other members shall receive no compensation;however, traveling and other necessary expenses shall be allowed.

The Committee shall oversee and monitor the implementation of the Congressional Commission on AgricultureModernization (AGRICOM) recommendations as well as all programs, projects and activities related toagriculture and fisheries, and its allied concerns in both public and private sectors, with a view to providing alllegislative support and assistance within the powers of Congress to ensure their inclusion, wherever feasible, inthe national, regional, provincial, municipal, and sectoral development plans, to recommend the disposal ofassets no longer needed by the Department to fund the modernization program, and to see them through theirsuccessful implementation.

SEC. 115. Powers and Functions of the Committee. - The Congressional Oversight Committee on Agricultureand Fisheries Modernization shall have the following powers and functions;

a) Prescribe and adopt guidelines that will govern its work;b) Hold hearings, receive testimonies and reports pertinent to is specified concerns;c) Secure from any department, bureau, office or instrumentality of the Government such assistance as may beneeded, including technical information, preparation and production of reports and submission ofrecommendations or plans as it may require;d) Summon by sub-poena any public or private citizen to testify before it, or require a subpoena duces tecum toproduce before it such records, reports or other documents as may be necessary in the performance of itsfunctions;e) Use resource persons from the public and private sectors as may be needed;f) Carry on the winding-up work of AGRICOM, such as editing and printing all technical reports and studies aswell as bibliographic cataloguing of its collection of source materials, continue its information and advocacy work;g) Cause to be transferred to the Committee all works, outputs, source materials and assets, funds, supplies andequipment of AGRICOM;

h) Approve the budget for the work of the Committee and all disbursements therefrom, including compensation ofall personnel;i) Organize it staff and hire and appoint such employees and personnel whether temporary, contractual or on



consultancy, subject to applicable rules, and j) Generally, to exercise all the powers necessary to attain the purposes for which it is created.

SEC. 116. Periodic Report. - The Committee shall submit periodic report on its findings and makerecommendations on actions to be taken by Congress and the appropriate departments, and that in order tocarry out the objectives of this Act, an initial amount of Twenty million pesos (P20,000,000.00) is herebyappropriated for the Oversight Committee for the first year of its operation.

SEC. 117. Automatic Review. - Every five (5) years after the effectivity of this Act an independent review panelcomposed of experts to be appointed by the President shall review the policies and programs in the Agricultureand Fisheries Modernization Act and shall make recommendations, based on its findings, to the President and toboth Houses of Congress.

SEC. 118. Repealing Clause. – All l aws, decrees, executive issuance, rules and regulations inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 119. Separability Clause. - The provisions of this Act are hereby declared to be separable, and in the eventone or more of such provisions are held unconstitutional, the validity of the other provisions shall not be affectedthereby.

SEC. 120. Effectivity. – This Act shall take effect thirty (30) days from the date of i ts publication in the OfficialGazette or an at least two (2) newspapers of general circulation.

PRESIDENTIAL DECREE NO. 1144CREATING THE FERTILIZER AND PESTICIDE AUTHORITY AND ABOLISHING THE FERTILIZER

INDUSTRY AUTHORITYWHEREAS, it is Government policy to provide adequate assistance to the agricultural sector in line with thenational objective of increasing f ood production;

WHEREAS, fertilizer and pesticides are vital inputs in food production and must be supplied inadequate quantities at reasonable costs;

WHEREAS, improper pesticide usage presents serious risks to users, handlers, and the public ingeneral because of the inherent toxicity of these compounds which are, moreover, potential environmental

contaminants;

WHEREAS, there is a need to educate the agricultural sector on the benefits as well as the hazardsof pesticide use so that it can utilize pesticides properly to promote human welfare while avoiding dangers tohealth and environmental pollution;

WHEREAS, the fertilizer and pesticide industries have much in common in terms of clientele,distribution channels, system of application in farmers’ fields, and technical supervision by the same farmmanagement technicians under the government’s food production pr ogram;

WHEREAS, the foregoing consideration make it desirable to have one agency to regulate fertilizerimportation, manufacture, formulation, distribution, delivery, sale, transport and storage as well as pesticidelabeling, distribution, storage, transportation, use and disposal;

WHEREAS, the Fertilizer Industry Authority was created by Presidential Decree No. 135, dated 22February 1973, and amended by Presidential Decree Nos. 517 and 669, dated 19 July 1974 and 11 March 1975respectively, in order to regulate, control and develop the fertilizer industry but does not include the pesticideindustry in its jurisdiction;

WHEREAS, there is an urgent need to create a technically-oriented government authority equippedwith the required expertise to regulate, control, and develop both the fertilizer and the pesticide industries;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of thepowers vested in me by t he Constitution, do hereby decree and order the following:

SECTION 1. Creation of the Fertilizer and Pesticide Authority. The Fertilizer and Pesticide Authority, hereinafter referred to as the FPA, is hereby created and attached to the Department of Agriculture for

the purpose of assuring the agricultural sector of adequate supplies of fertilizer and pesticide at reasonableprices, rationalizing the manufacture and marketing of fertilizer, protecting the public from the risks inherent in theuse of pesticides, and educating the agricultural sector i n the use of these inputs.

SECTION 2. Abolition of the Fertilizer Industry Authority. The Fertilizer Industry Authoritycreated under Presidential Decree No. 135, dated 22 February 1973, as amended by Presidential Decree 517and 669, dated 19 July 1974 and 11 March 1975 respectively, is hereby abolished.

The FPA shall assume such appropriations, assets and liabilities and hire such personnel of the FIAas may be determined by its Board of Directors; Provided, that such assumption is made within sixty (60) daysfrom the effectivity of this decree.

SECTION 3. Definitions. For the purpose hereof, the terms herein below shall be understood tomean as follows:

a. ―Pesticide‖ – any substance or product, or mixture thereof, including active ingredients,adjuvants and pesticide formulations, intended to control, prevent, destroy, repel or mitigate



directly of indirectly, any pest. The term shall be understood to include insecticide, fungicide,bactericide, nematocide, herbicide, molluscicide, avicide, rodenticide, plant regulator, defoliant,desiccant and the like.

b. ―Fertilizer‖ – includes any substance – solid or liquid – or any nutrient element or elements – organic or inorganic – singly or i n combination with other materials, applied directly to the soil forthe purpose of promoting plant growth, increasing crop yield or improving their quality.

c. ―Other agricultural chemicals‖ – shall mean chemicals, chemical inputs and chemicalcompounds not herewith covered by the definition of fertilizer and pesticide but utilized by theagricultural sector.

d.

―Handlers‖ – shall mean exporters, importers, manufacturers, formulators, distributors, suppliers,wholesalers, dealers, repackers, commercial applicators, warehousers, and retailers offertilizers, fertilizer inputs, pesticide and other agricultural inputs.

e. ―Tolerance Level‖ – shall mean the maximum amount of pesticides, as determined by the FPA,which may be allowed to remain in any raw agricultural produce at any stage betweenharvesting and consumption.

f. ―Imminent Hazard‖ – shall mean a situation which exists when the continued use of a pesticidewill likely result in unreasonable adverse effects on the public and/or the environment or willinvolve unreasonable hazards to the survival of a specie declared endangered by theappropriate authorities.

SECTION 4. Board of Directors. The powers and functions of the FPA shall be vested in and

exercised by a Board of Directors which shall be composed of the following officials or their representative:

1. Secretary of Agriculture Chairman2. Secretary of Industry Member3. Secretary of Finance Member4. Secretary of Trade Member5. Governor, Central Bank Member6. President, Philippine National Bank Member7. Director, Bureau of Plant Industry Member8. Commissioner, Pollution Control Commission Member9. Administrator, Food and Drug Administration Member

The members of the Board shall elect a Vice-Chairman who shall act as Chairman in case of the

absence, inability or temporary incapacity of the Chairman.

SECTION 5. Organization. The FPA is empowered to determine and create its organizationalstructure in order to achieve its objectives, including the number, positions and salaries of its officers andemployees.

The Board is empowered to create the positions of Administrator, Deputy Administrator for Fertilizer,Deputy Administrator for Pesticides, and other subordinate officials as may be required.

The Board shall appoint all the officers of the FPA, establish a compensation scheme including allowancesand benefits, working hours and such other conditions of employment as it may deem proper, disciplineand/or remove for cause, and exercise such other powers over its personnel as maybe necessary for theefficient operation of the FPA.

SECTION 6. Powers and Functions. The FPA shall have jurisdiction, on over all existing handlers ofpesticides, fertilizers and other agricultural chemical inputs. The FPA shall have the following powers andfunctions:

I, Common to Fertilizers, Pesticides, and Other Agricultural Chemicals

To conduct an information campaign regarding the safe and effective use of these products;To promote and coordinate all fertilizer and pesticides research in cooperation with the Philippine

Council for Agriculture and Resources Research and other appropriate agencies to ensurescientific pest control in the public interest, safety in the use and handling of pesticides,higher standards and quality of products and better application methods;

To call upon any department, bureau, office, agency or instrumentality of the government, includinggovernment-owned or controlled corporations, or any officer or employee thereof and on theprivate sector, for such information or assistance as it may need in the exercise of its powers

and in the performance of its functions and duties;To promulgate rules and regulations for the registration and licensing of handlers of these products,collect fees pertaining thereto, as well as the renewal, suspension, revocation, or cancellationof such registration or licenses and such other rules and regulations as may be necessary toimplement this Decree;

To establish and impose appropriate penalties on handlers of these products for violations of anyrules and regulations established by the FPA;

To institute proceedings against any person violating any provisions of this Decree and/or such rulesand regulations as may be promulgated to implement the provisions of this Decree after duenotice and hearing;

To delegate such selected privileges, powers or authority as may be allowed by law to corporation,cooperatives, associations or individuals as may presently exist or be organized to assist theFPA in carrying out its functions, and;

To do any and all acts not contrary to law or existing decrees and regulations as may be necessary to

carry out the functions of the FPA.II. Fertilizers

To make a continuous assessment of the fertilizer supply and demand situation, both domestic andworldwide;

To establish and enforce sales quotas, production schedules, distribution areas and such othermarketing regulations as may be necessary to assure market stability and viable operationsin the industry;

To determine and set the volume and prices both wholesale and retail, of fertilizer and fertilizerinputs;

To establish and implement regulations governing the import and export of fertilizer and fertilizerinputs, and when necessary, to itself import and/or export such items, including thenegotiating and contracting of such imports and exports;

To import fertilizer and fertilizer inputs exempt from custom duties, compensating and sales taxes,and all other taxes, and to purchase naptha locally free from specific taxes and thecorresponding duty on the imported crude, and to sell or convey such fertilizer or fertilizerinput to any individual association, or corporation likewise exempt from the payment ofcustoms duties and all other taxes;

To control and regulate all marketing companies, whether importer, indentor, wholesaler or retailer; bycontrolling and regulating prices, terms, mark-ups, distribution channels, promotion, storageand other marketing factors in the domestic fertilizer market;

To regulate and control quality of the different grades of fertilizer and to set new grades whennecessary;

To control and regulate all aspects of domestic fertilizer production, including the utilization of idlecapacity and the orderly expansion of the industry and to compel the utilization of unused orunderutilized capacities of fertilizer companies and to direct any improvements, modificationsor repairs as may be necessary to accomplish this;

To approve or to reject the establishment of new fertilizer of fertilizer input plants and the expansion orcontraction of existing capacities;



To obtain complete access to all pertinent information on the operations of the industry, includingaudited and/or unaudited financial statements, marketing, production, and inventory data;

To control and assist in the financing of the importation of fertilizer and fertilizer inputs of production,of inventory and working capital, and of the expansion of the industry;

To do all such things as may be necessary to maintain an adequate supply of fertilizers to thedomestic market at reasonable prices while maintaining the long term viability of the industry.

III. Pesticides and Other Agricultural Chemicals

To determine specific uses or manners of use for each pesticide or pesticide formulation;To establish and enforce tolerance levels and good agricultural practices for use of pesticides in raw

agricultural commodities;To restrict or ban the use of any pesticide or the formulation of certain pesticides in specific areas orduring certain periods upon evidence that the pesticide is an imminent hazard, has caused,or is causing widespread serious damage to crops, fish or livestock, or to public health andenvironment;

To prevent the importation of agricultural commodities containing pesticide residues above theaccepted tolerance levels and to regulate the exportation of agricultural products containingpesticide residue above accepted tolerance levels;

To inspect the establishment and premises of pesticide handlers to insure that industrial health andsafety rules and anti-pollution regulations are followed;

To enter and inspect farmers’ fields to ensur e that only the recommended pesticides are used inspecific crops in accordance with good agricultural practice;

To require if and when necessary, of every handler of these products, the submission to the FPA of areport stating the quantity, value of each kind of product exported, imported, manufactured,

produced, formulated, repacked, stored, delivered, distributed, or sold;Should there be any extraordinary and unreasonable increases in prices, or a severe shortage in

supply of pesticides or imminent dangers or either occurrences, the FPA is empower toimpose such controls as may be necessary in the public interest, including but not limited tosuch restrictions and controls as the imposition of price ceilings, controls on inventories,distribution, and transport, and tax-free importation of such pesticides or raw materials thereofas may be in short supply.

SECTION 7. Power to Issue Rules and Regulations to Implement Decree. The FPA is herebyauthorized to issue or promulgate rules and regulations to implement, and carry out the purposes and provisionof this Decree.

SECTION 8. Prohibitions Governing Sale and Use of Fertilizers and Pesticides. It shall beunlawful for any handler of pesticides, fertilizer, and other agricultural chemicals or for any farmers, planter or

end-user of the same as the case may be:

a) To engage in any form of production, importation, distribution, storage, and sale incommercial quantities without securing from the FPA a license therefor;

b) To use any pesticide or pesticide formulation on crops, livestock, and the environment in amanner contrary to good agricultural practices as hereinabove defined;

c) To deal in pesticides and/or fertilizers which have not been previously registered with FPA orwhich registration has expired or has been suspended or revoked;

d) To adulterate pesticides formulation and fertilizer grade;e) To impose as a condition for the purchase of fertilizer, the simultaneous purchase of pesticide

or other agricultural chemical inputs and vice-versa;f) To mislabel or make claims which differ in substance from the representation made in

connection with a product’s registration or from its actual effectiveness; and g) To violate such other rules and regulations as may be promulgated by FPA.

SECTION 9. Registration and Licensing. No pesticides, fertilizer, or other agricultural chemicalshall be exported, imported, manufactured, formulated, stored, distributed, sold or offered for sale, transported,

delivered for transportation or used unless it has been duly registered with the FPA or covered by a numberedprovisional permit issued by FPA for use in accordance with the conditions as stipulated in the permit. Separateregistrations shall be required for each active ingredient and its possible formulations in the case of pesticides orfor each fertilizer grade in the case of fertilizer.

No person shall engage in the business of exporting, importing, manufacturing, formulating,distributing, supplying, repacking, storing, commercially applying, selling, marketing, of any pesticides, fertilizerand other agricultural chemicals except under a license i ssued by the FPA.

The FPA, in the pursuit of its duties and functions, may suspend, revoke, or modify the registration ofany pesticide, fertilizer and other agricultural chemicals after due notice and hearing.

SECTION 10. Penalt ies

a) Fertilizer – Any person who violates any of the provisions of this Decree or any of theprovisions of the rules and regulations issued or promulgated by the FPA on fertilizer shall be punished byimprisonment of not less than 15 years and 1 day or more than 20 years if the amount involved is more thanP50,000.00; by imprisonment of not less than 10 years and 1 day or more than 15 years if the amount involved isP10,000.00 or less, as well as a fine ranging from an amount equal to the value involved to three times suchvalue but which shall in no case be less than P5,000.00 nor more than P20,000.00; by a fine or P5,000.00 normore than P10,000.00 by other violations where the amount involved cannot be determined; Provided, that iffalsification of a public or commercial document is committed by reasons or on the occasion of the commission ofany of the acts punishable herein, the offender shall be imposed the maximum fine and term of imprisonment asabove prescribed. If the violation is committed by a corporation, firm, partnership, cooperative, association orany other entity, the penalty shall be imposed upon the guilty office or offices and such corporation, firm,partnership, association or entity.

b) Pesticides – Any person who violates any of the provisions of this Decree or any of theprovisions of the rules and regulations issued or promulgated by FPA on pesticides, shall be liable to a penalservitude of not in excess of one year or a fine of P5,000.00 but not more than P10,000.00 provided that if theviolation is committed by a corporation, firm, partnership, cooperative, association or any other entity, the penaltyshall be imposed upon the guilty officials or officers of such entities.

SECTION 11. Appropriation. The sum of One Million and Two Hundred Thousand (P1.2 Million) Pesosshall, in addition to what has been appropriated for the Fertilizer Industry Authority for the Calendar Year1977, be released out of any funds in the National Treasury not otherwise appropriated. For everycalendar year thereafter, such sums as may be necessary for the operations of the FPA shall be included inthe General Appropriations Decree.

Any provision of existing law to the contrary notwithstanding, the FPA may impose fees or receivegrants, subsidies, donations, or contributions from any entity and retain such funds for its operation.SECTION 12. Life of FPA. The FPA shall constitute itself immediately and shall continue to exist

until and unless abolished by the President of the Philippines.

SECTION 13. Separability Clause. The provisions of this Decree are hereby declared to beseparable, and in the event any one or more of such provisions are held unconstitutional, the validity of otherprovisions shall not be affected.

SECTION 14. Repealing Clause. All laws, decrees, acts, executive orders, ordinances, rules andregulations which are inconsistent with the provisions of the Presidential Decree are hereby repealed,amended or modified accordingly.

SECTION 15. Effectivity. This Decree shall take effect upon approval.



REPUBLIC ACT NO. 8048

AN ACT PROVIDING FOR THE REGULATION OF THE CUTTING OF COCONUT TREES, ITSREPLENISHMENT, PROVIDING PENALTIES THEREFOR AND FOR OTHER PURPOSES

SECTION 1. Title. — This act shall be known as the "Coconut Preservation Act of 1995."SECTION 2. Declaration of Policy . — Considering the importance of the coconut industry

in nation building being one of the principal industries and one of the largest income earners of the country,it becomes mandatory for the Government to step-in and regulate the unabated and indiscriminate cuttingof the coconut trees. For reasons of national interest, it is hereby declared the policy of the State toprovide for the regulation of the cutting of coconut trees as well as to promote the growth of the industry by

embarking on a sustainable and efficient replanting program.SECTION 3. Definitions of terms. — For purposes of this Act, the following terms shall bedefined as follows:

a) Coconut tree refers to a tall pinnate-leaved palm bearing a large edible fruit called thecoconut.b) Replanting program refers to the program formulated by the Philippine Coconut Authority(PCA) to replenish the coconut trees which have been permitted to be cut by the PCA.c) Permit refers to the written authorization of the PCA allowing the cutting of coconut trees.d) Economically unproductive farm refers to a coconut area where the cost of farm productionand maintenance is greater than the generated proceeds or income for a period of at least three (3)years.e) Senescent coconut trees are coconut trees which are already overage, weak and no longerproductive.

SECTION 4. Prohibition. — No coconut tree shall be cut except in the following cases

and only after a permit had been issued therefor:a) When the tree is sixty (60) years old;b) When the tree is no longer economically productive;c) When the tree is disease-infested;d) When the tree is damaged by typhoon or lightning;e) When the agricultural land devoted to coconut production shall have been converted inaccordance with law into residential, commercial or industrial areas;f) When the land devoted to coconut production shall be converted into other agricultural usesor other agriculture-related activities in pursuance to a conversion duly applied for by the owner andapproved by the proper authorities: Provided , That no conversion shall be allowed by the PCA untilafter it shall have been verified and certified that for a period of at least three (3) years the majority ofthe coconut trees have become senescent and economically unproductive or where the coconutfarm is not adaptable to sound management practices on account of geographical location,

topography, drainage and other conditions rendering the farm economically unproductive; andg) When the tree would cause hazard to life and property.No other causes other than those abovementioned shall be considered as a valid ground for

cutting.SECTION 5. Permit to cut . — No coconut tree or trees shall be cut unless a permit

therefore, upon due application being made, has been issued by the PCA pursuant to Section 6 of this Act.The applicant shall pay an application fee in the amount of Twenty-five pesos (P25.00) for every

tree intended to be cut payable to the PCA. Ten pesos (P10.00) of the fee shall accrue in favor of thePCA, Ten pesos (P10.00) in favor of the municipal government concerned, and Five pesos (P5.00) in favorof the barangay unit concerned. The fees shall be used for the PCA's replanting program and for the repairand rehabilitation of roads of the respective local government units which have been damaged by thepassage of heavy vehicles used for transporting coconut lumber.

No permit to cut shall be granted unless the applicant, in coordination with the PCA and thelocal government unit concerned, has already planted the equivalent number of coconut trees applied for to

be cut.Such replantings, however, shall not apply to areas converted into industrial, commercial or

residential sites or land transformed in accordance with l aw, into other agricultural purposes.

The PCA, in coordination with the local government unit concerned, shall regulate and overseethe planting, fertilization and care of the newly planted coconut trees. For this purpose, it shall beincumbent upon the PCA to conduct, from time to time, on-the-spot inspections of the sites where thecoconut trees have been planted.

SECTION 6. Authority to Cut . — The Philippine Coconut Authority shall have theexclusive authority to grant permit for the cutting of coconut trees. The authority may be delegated to thecity or municipal mayors as the PCA may determine.

SECTION 7. Implementing Rules. — The Philippine Coconut Authority shall be the leadagency to implement the provisions of this Act. For this purpose, the Philippine Coconut Authority shallprescribe the necessary rules and regulations for the immediate and effective implementation of this Act.

The PCA, in order to effectively implement the provisions of this Act, may request the assistance

of any local government unit, to monitor and ensure compliance with this Act including its implementingrules and regulations. For this purpose, the PCA may deputize the Philippine National Police or other lawenforcement agencies to investigate and apprehend those caught violating the provisions of this Act,including the confiscation of illegally cut trees.

In addition to the foregoing, the PCA shall also, in coordination with the local government unitconcerned, require the registration of all sawmills, lumberyards, coconut wood dealers and other personsor entities dealing in the processing, sawing of the coconut trees.

SECTION 8. Penalties. — Those found guilty of violating this Act or any rules andregulations issued pursuant hereto shall, upon conviction, be punished by imprisonment of not less thanone (1) year but not more than six (6) years, or a fine of not less than Fifty thousand pesos (P50,000) butnot more than Five hundred thousand pesos (P500,000), or both in the di scretion of the court.

If the offender is a corporation or a juridical entity, the official who ordered or allowed thecommission of the offense shall be punished with the same penalty.

If the offender is in the government service, he shall, in addition be dismissed from office.

SECTION 9. Separability Clause. — If any part or section of this Act is declaredunconstitutional, such declaration shall not affect the other parts or sections of this Act.

SECTION 10. Repealing Clause. — All laws, presidential decrees, executive orders, rulesand regulations inconsistent with any provisions of this Act shall be deemed repealed or modifiedaccordingly.

SECTION 11. Effectivity Clause. — This Act shall take effect upon its approval. Approved: June 7, 1995

Published in the Official Gazette, Vol. 91 No. 33 page 5202 on August 14, 1995.



Republic Act No. 8485 February 11, 1998

AN ACT TO PROMOTE ANIMAL WELFARE IN THE PHILIPPINES, OTHERWISE KNOWN AS "THE ANIMALWELFARE ACT OF 1998"

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

Section 1. It is the purpose of this Act to protect and promote the welfare of all animals in the Philippines bysupervising and regulating the establishment and operations of all facilities utilized for breeding, maintaining,keeping, treating or training of all animals either as objects of trade or as household pets. For purposes of this

Act, pet animal shall include birds.

Section 2. No person, association, partnership, corporation, cooperative or any government agency or

instrumentality including slaughter houses shall establish, maintain and operate any pet shop, kennel, veterinaryclinic, veterinary hospital, stockyard, corral, stud farm or stock farm or zoo for the breeding, treatment, sale ortrading, or training of animals without first securing from the Bureau of Animal Industry a certificate of registrationtherefor.

The certificate shall be issued upon proof that the facilities of such establishment for animals are adequate, cleanand sanitary and will not be used for, nor cause pain and/or suffering to the animals. The certificate shall be validfor a period of one (1) year unless earlier cancelled for just cause before the expiration of its term by the Directorof the Bureau of Animal Industry and may be renewed from year to year upon compliance with the conditionsimposed hereunder. The Bureau shall charge reasonable fees for the issuance or renewal of such certificate.

The condition that such facilities be adequate, clean and sanitary, and that they will not be used for nor causepain and/or suffering to the animals is a continuing requirement for the operation of these establishments. TheBureau may revoke or cancel such certificate of registration for failure to observe these conditions and other just

causes.Section 3. The Director of the Bureau of Animal Industry shall supervise and regulate the establishment,operation and maintenance of pet shops, kennels, veterinary clinics, veterinary hospitals, stockyards, corrals,stud farms and zoos and any other form or structure for the confinement of animals where they are bred, treated,maintained, or kept either for sale or trade or for training as well as the transport of such animals in any form ofpublic or private transportation facility in order to provide maximum comfort while in transit and minimize, if nottotally eradicate, incidence of sickness and death and prevent any cruelty from being inflicted upon the animals.

The Director may call upon any government agency for assistance consistent with its powers, duties, andresponsibilities for the purpose of ensuring the effective and efficient implementation of this Act and the rules andregulations promulgated thereunder.

It shall be the duty of such government agency to assist said Director when called upon for assistance using anyavailable fund in its budget for the purpose.

Section 4. It shall be the duty of any owner or operator of any land, air or water public utility transporting pet,wildlife and all other animals to provide in all cases adequate, clean and sanitary facilities for the safeconveyance and delivery thereof to their consignee at the place of consignment. They shall provide sufficientfood and water for such animals while in transit for more than twelve (12) hours or whenever necessary.

No public utility shall transport any such animal without a written permit from the Director of the Bureau of AnimalIndustry or his/her authorized representative. No cruel confinement or restraint shall be made on such animalswhile being transported.

Any form of cruelty shall be penalized even if the transporter has obtained a permit from the Bureau of AnimalIndustry. Cruelty in transporting includes overcrowding, placing of animals in the trunks or under the hood trunksof the vehicles.

Section 5. There is hereby created a Committee on Animal Welfare attached to the Department of Agriculture

which shall, subject to the approval of the Secretary of the Department of Agriculture, issue the necessary rulesand regulations for the strict implementation of the provisions of this Act, including the setting of safety andsanitary standards, within thirty (30) calendar days following its approval. Such guidelines shall be reviewed bythe Committee every three (3) years from its implementation or whenever necessary.

The Committee shall be composed of the official representatives of the following:

(1) The Department of Interior and Local Government (DILG);

(2) Department of Education, Culture and Sports (DECS);

(3) Bureau of Animal Industry (BAI) of the Department of Agriculture (DA);

(4) Protected Areas and Wildlife Bureau (PAWB) of the Department of Environment and NaturalResources (DENR);

(5) National Meat Inspection Commission (NMIC) of the DA;

(6) Agriculture Training Institute (ATI) of the DA;

(7) Philippine Veterinary Medical Association (PVMA);

(8) Veterinary Practitioners Association of the Philippines (VPAP);

(9) Philippine Animal Hospital Association of the Philippines (PAHA);

(10) Philippine Animal Welfare Society (PAWS);

(11) Philippine Society for the Prevention of Cruelty to Animals (PSPCA);

(12) Philippine Society of Swine Practitioners (PSSP);

(13) Philippine College of Canine Practitioners (PCCP); and

(14) Philippine Society of Animal Science (PSAS).

The Committee shall be chaired by a representative coming from the private sector and shall have two (2) vice-chairpersons composed of the representative of the BAI and another from the private sector.

The Committee shall meet quarterly or as often as the need arises. The Committee members shall not receiveany compensation but may receive reasonable honoraria from time to time.

Section 6. It shall be unlawful for any person to torture any animal, to neglect to provide adequate care,sustenance or shelter, or maltreat any animal or to subject any dog or horse to dogfights or horsefights, kill orcause or procure to be tortured or deprived of adequate care, sustenance or shelter, or maltreat or use the samein research or experiments not expressly authorized by the Committee on Animal Welfare.

The killing of any animal other than cattle pigs, goats, sheep, poultry, rabbits, carabaos, horses, deer andcrocodiles is likewise hereby declared unlawful except in the following instances:

(1) When it is done as part of the reli gious rituals of an established religion or sect or a ritual required

by tribal or ethnic custom of indigenous cultural communities; however, leaders shall keep records incooperation with the Committee on Animal Welfare;

(2) When the pet animal is afflicted with an incurable communicable disease as determined andcertified by a duly licensed veterinarian;

(3) When the killing is deemed necessary to put an end to the misery suffered by the animal asdetermined and certified by a duly li censed veterinarian;

(4) When it is done to prevent an imminent danger to the life or limb of a human being;

(5) When done for the purpose of animal population control;

(6) When the animal is killed after it has been used in authorized research or experiments; and

(7) Any other ground analogous to the foregoing as determined and certified licensed veterinarian.

In all the above mentioned cases, including those of cattle, pigs, goats, sheep, poultry, rabbits, carabaos, horses,deer and crocodiles the killing of the animals shall be done through humane procedures at all times.



For this purpose, humane procedures shall mean the use of the most scientific methods available as may bedetermined and approved by the committee.

Only those procedures approved by the Committee shall be used in the killing of animals.

Section 7. It shall be the duty of every person to protect the natural habitat of the wildlife. The destruction of saidhabitat shall be considered as a form of cruelty to animals and its preservation is a way of protecting the animals.

Section 8. Any person who violates any of the provisions of this Act shall, upon conviction by final j udgment, bepunished by imprisonment of not less than six (6) months nor more than two (2) years or a fine of not less thanOne thousand pesos (P1,000.00) nor more than Five thousand pesos (P5,000.00) or both at the discretion of theCourt. If the violation is committed by a juridical person, the officer responsible therefor shall serve theimprisonment when imposed. If the violation is committed by an alien, he or she shall be immediately deported

after service of sentence without any further proceedings.

Section 9. All laws, acts, decrees, executive orders, rules and regulations inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Section 10. This Act shall take effect fifteen (15) days after its publication in at least two (2) newspapers ofgeneral circulation.

Approved: February 11, 1998

EXECUTIVE ORDER NO. 626 October 21, 1980

FURTHER AMENDING EXECUTIVE ORDER NO. 234 DATED MAY 16, 1970, BANNING THE SLAUGHTEROF CARABAOS AND BUFFALOES

WHEREAS, Executive Order No. 234, as amended by Executive Order No. 253, allows the slaughter ofcarabaos and buffaloes that are three years old or over; and

WHEREAS, present conditions demand that the carabao and the buffalo be conserved for the benefit of thesmall farmers who rely on them for energy needs.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by vi rtue of the powers vested inme by the Constitution, do hereby promulgate the following:

Sec. 1. Executive Order No. 234 is further amended such that the slaughtering of carabaos and buffaloes ishereby prohibited except under the following conditions:

a. Only carabaos and buffaloes that are seven years old or over, if male, and eleven years old orover, if female, may be slaughtered upon issuance of the necessary slaughter permit by theauthorities concerned;

b. No slaughter permit shall be issued without a certificate by the Provincial or City Veterinarianconcerned, or their authorized representatives, to the effect that the carabao or buffalo to beslaughtered is of the required age and free from any disease.

Sec. 2. The Minister of Agriculture, upon recommendation of the Director of the Bureau of Animal Industry, shallissue such rules and regulations that will effectively carry out the provisions of this Executive Order.

Sec. 3. This Executive Order shall take effect immediately.

Done in the City of Manila, this 21st day of October, in the year of Our Lord, nineteen hundred and eighty.



PRESIDENTIAL DECREE No. 1433

PROMULGATING THE PLANT QUARANTINE LAW OF 1978, THEREBY REVISING AND CONSOLIDATINGEXISTING PLANT QUARANTINE LAWS TO FURTHER IMPROVE AND STRENGTHEN THE PLANT

QUARANTINE SERVICE OF THE BUREAU OF PLANT INDUSTRY

WHEREAS, economic losses due to injury on agricultural crops brought about by plant pests have becomeincreasingly significant;

WHEREAS, the prevention of introduction, incursion, establishment and subsequent spread of plant pests byregulating the international and domestic movements of plants and plant products, is considered more practicaland economical than any other method of plant pest control;

WHEREAS, modern means of transportation and handling of imports and exports have favored the expeditiousand extensive movements of plants and plant products, thereby, increasing the risk of plant pest introductionand/or incursion;

WHEREAS, plant quarantine is basically and essentially a preventive measure, it being the actual front-linedefense against the introduction or incursion into the country of plant pests which are destructive to ouragricultural crops;

WHEREAS, some of the provisions of Act No. 3027 dated March 8, 1922, entitled, "AN ACT TO PROTECT THE AGRICULTURAL INDUSTRIES OF THE PHILIPPINE ISLANDS FROM INJURIOUS PLANT PESTS ANDDISEASES EXISTING IN FOREIGN COUNTRIES AND FURTHER TO REGULATE THE DOMESTICMOVEMENT OF THE PLANT MATERIALS IN ORDER TO MINIMIZE THE INJURY FROM PESTS ANDDISEASES ALREADY INTRODUCED." And Act No. 3767, dated November 26, 1930, entitled "AN ACTREGULATING THE IMPORTATION, BRINGING OR INTRODUCTION INTO THE PHILIPPINE ISLANDS OF

LIVING ANIMALS, SUCH AS INSECTS, BIRDS, CRUSTACEANS, BATS, MOLLUSKS, REPTILES, MAMMALS, AND OTHER ANIMALS, NOT FALLING WITHIN THE SCOPE OF THE TERM 'DOMESTIC ANIMALS' ASPROVIDED AND DEFINED IN SECTION FOUR OF ACT NUMBERED THIRTY-SIX HUNDRED AND THIRTY-NINE, IN ORDER TO PROTECT THE AGRICULTURAL INDUSTRIES OF THIS COUNTRY AND FOR OTHERPURPOSES" are no longer relevant and applicable to the protection of plant industries of this country, andtherefore, require urgent and immediate modification and updating;

WHEREAS, the Plant Quarantine rules and regulations of the Philippines must be compatible with those of othercountries and with the provisions of t he Food and Agriculture Organization International Plant ProtectionConvention of the United Nations to which the Philippines is a signatory;

WHEREAS, the attainment of the foregoing objectives require the necessary improvement and strengthening ofthe Plant Quarantine Services of the Bureau of Plant Industry by providing adequate laws; regulations; resourcesand facilities; and incentives to Plant Quarantine Officers;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by vi rtue of the powers vested inme by the Constitution do hereby decree and order the following:

Section 1. This Decree shall be known as the "Plant Quarantine Decree of 1978".

Section 2. Definition of Terms. The following terms used in this Decree shall mean as follows:

(a) "Person" any natural or juridical person such as corporation, partnerships, societies, associations, firms,companies and other legal entities.

(b) "Director" The Director of Plant Industry.

(c) "Plant Quarantine Officer" any person so appointed and/or designated by the Director of Plant Industry.

(d) "Country" any independent political unit or sovereign nation, territory, colony and political or territorialsubdivision.

(e) "Carrier" includes any sort or craft or other artificial contrivance used, capable of being used as means oftransportation in land, water or air.

(f) "Plants" shall compromise living plants and parts thereof, including seeds, cuttings, rhizomes, bulbs andcorns, grafts, leaves, roots, scions and others that are capable of propagation.

(g) "Plant Products" shall mean products derived from plants, either in their natural state or in manufactured orprocessed form and are capable of harboring plant pests.

(h) "Potential Animal Pest" shall compromise certain species of animal that are liable to become agriculturalcrop pests such as insects, monkeys, rodents, bats, finches, rabbits, snails and other forms of animal lifecapable of causing injury to agricultural crops.

(i) "Packing Materials" includes leaves, straw, bark and other plant materials used as wrapping, packing, orconverting and are capable of harboring plant pets.

(j) "Plant Pest" any form of plant or animal life, or any pathogenic agent, injurious or potentially injurious toplants and/or plant products.

(k) "Quarantine Orders" shall mean those Administrative Orders promulgated and issued by the Director ofPlant Industry to implement the provision of this Decree.

(l) "Commodity Treatment" any form of treatment applied to plants, plant products, and other materialscapable of harboring plant pests, for the purpose of destroying or eliminating any infection/infestation causedby plant pests.

(m) "Port of Entry" is a port open to both foreign and domestic trade. The term includes principal ports of entryand subports of entry.

(n) "Importation" is the act of bringing into the country the foreign commodities mentioned under Section 3 and4 of this Decree for planting, consumption, manufacturing, domestication or for any other purpose.

(o) "Plants Plant Products in Transit" shall refer to plants/plant products brought into any port in the countrybut are not intended for landing at the said port.

(p) "Exportation" is the act of transporting commodities mentioned under Sections 3, 4, and 6 hereof, from alocal port to a foreign port.

(q) "Phytosanitary Certification" shall mean plant health certification.

Section 3. Importation of plants and plant products. The importation and/or introduction into the Philippines ofplants, plant products, soil, packing materials of plant origin capable of harboring and are a source of medium ofinfection/infestation of plant pests, i s hereby restricted subject to such quarantine orders, rules and regulationsas may be promulgated, from time to time, by the Director with the approval of the Secretary of Agriculture.

Section 4. Importation of potential animal pests. The importation of certain species of animals which are liable tobecome agricultural crop pests and are capable of causing injury to agricultural crops, is hereby prohibited.

However, importation in limited quantities for a justifiable purpose and upon a written permit from the Director ofPlant Industry, may be allowed.

Section 5. Commodities in transit. Commodities mentioned under Section 3 and 4 of this Decree, as well as,food provisions of plant origin and plant ornaments on board carriers, that are in transit shall be required of aclearance from the Plant Quarantine Officers assigned at the port concerned.

Section 6. Exportation of plants and plant products. The Director and/or Plant Quarantine Officers shall causethe inspection and phytosanitary certification of all plants, plant products and other related materials capable ofharboring plant pests, if the importing country so requires.

Section 7. Inspection of plants/plants products, potential animal pests, and other materials. The Director shallcause the appropriate inspection, of the commodities mentioned in Sections 3, 4 5 and 6 and to apply thenecessary plant quarantine measures in order to attain the objectives of this Decree.

Section 8. Domestic Quarantine of plants and plant products. In order to prevent and arrest the spread to otherareas, of injurious plant pests existing in certain localities within the Philippines, the Director, and/or the Plant



Quarantine Officers shall cause the inspection; treatment, if necessary; and certification of plants and plantproducts involved in the movement from one locality to another within the country.

In cases where it is necessary to contain plant pest(s) the Director may limit the movement of certain plantsand/or plant products.

Section 9. Appointment and/or designation of Plant Quarantine Officers. The Director shall cause theappointment and/or special designation of Plant Quarantine Officers, who shall act as his representatives, inimplementing and enforcing the provisions of this Decree. Provided, however, that such special designation shallbe in written form.

Section 10. Powers and Duties of Plant Quarantine Officers.

(a) To inspect all carriers, crew/passenger luggages and incoming mails, in order to determine the presence ofplants, plant products, and other materials capable of harboring plant pests, as well as, potential animal pests.

(b) To enter into the inspect any and all areas where plants, plant products, and other materials capable ofharboring plant pests are landed, stored, and/or grown.

(c) To examine imported plants, plant products, and other materials capable of harboring plant pests as wellas potential animal pests and to administer necessary measures to ensure effective implementation of theprovisions of this Decree.

(d) To inspect, administer treatment, if necessary; and issue phytosanitary certificates on plants, plantproducts, and other related materials intended for export, if the improving country so requires.

(e) To confiscate and destroy or refuse entry of plants, plant products and potential animal pests i nvolved inprohibited importations, as well as prohibited plants and plant products which exportation is, likewise,

prohibited.(f) To perform such other related duties which maybe assigned to him, from time to time.

In the exercise of the powers and duties herein vested to Plant Quarantine Officers, they are hereby given policepower and authority.

Section 11. Non-liability clause. All charges for storage, demurrage, cartage, labor and delays incident toinspection, cost of disinfection or disinfestation and other post-entry requirements shall be the responsibility ofthe importer or the exporter, as the case may be. Provided, that the Bureau of Plant Industry and/or itsauthorized representative shall not be held liable for damages to the commodity in the course of theimplementation of the provisions of this Decree.

Section 12. Duties of the Importer and Exporter. The importers, exporters, or their authorized representativesshall submit a declaration to the Director of Plant Industry or his authorized representatives at, or before the time

of entry/embarkation of commodities mentioned under Sections 3, 4 and 6 hereof, for importation/exportation.Such declaration shall indicate the name and address of the consignor/consignee; the purpose; kind, nature andquantity of said commodities; the country or locality where the same was grown; place and date of unloading orembarkation; and the registered name of carrier carrying the consignment.

Section 13. Entrance and Clearance of Carriers. The owner, operator, agent or master of carriers flyinginternational and/or domestic routes are hereby required to serve a notice of arrival and departure and to provideinward and outward cargo manifests and other declarations of said carriers to the Plant Quarantine Officer at theport. Prior to departure, the agent or master of said carrier must secure a clearance from the Plant QuarantineOfficer thereat.

The Collector of Customs or his authorized agents shall, require the owner, agent or master of carrier to submit acopy of the certificate of Plant Quarantine Clearance as a pre-requisite to the i ssuance of the CustomsClearance.

Section 14. Collection of fees. The Director shall promulgate rules and regulations governing the collection ofnominal regulatory fees for i nspection, certification, import permits, commodity treatment and other, oncommodities mentioned under Section 3, 4 and 6. Provided, that said collections shall constitute the RevolvingFund of the National Plant Quarantine Service, to augment the existing appropriations therefor, subject to

government accounting and auditing regulations. Provided, however, that importations and exportations of allgovernment agencies; government owned or controlled corporations; donations to and for the account of anyduly registered relief-organizations; or any charitable institution certified by the Department of Social Servicesand Development; embassies of foreign governments; and those that may be declared by the President, uponthe recommendation of the National Economic and Development Authority, in the interest of economicdevelopment, are exempted from payment of such fees excluding, however, the expenses incurred in commoditytreatment.

Section 15. Overtime Services. The services of Plant Quarantine Officers, fumigators and helpers performedoutside office hours and reimbursement of meal, transportation, lodging and other incidental expenses shall bechargeable to party or parties served at rates to be prescribed by the Secretary of Agriculture uponrecommendation of the Director.

Section 16. Cooperating Agencies. The Director may, when necessary, call upon other government agencies(military, civil, national or local) in the implementation of plant quarantine regulation and dissemination ofinformation to the general public.

Section 17. Authority to promulgate Special Quarantine Orders, Rules and Regulations. The Director, with theapproval of the Secretary of Agriculture, is hereby authorized to promulgate such Special Quarantine Orders,rules and regulations to implement the provisions of this Decree.

Section 18. The Plant Quarantine Board. For the purpose of carrying out the provisions of this Decree, a PlantQuarantine Board is hereby created composed of the following:

a. The Director of Plant Industry Chairman

b. Commissioner of Customs or representative Member

c. General Manager or representative of Philippine Ports Authority Member

d. Director, Bureau of Quarantine or representative Member

e. Director, Bureau of Animal Industry or representative Member

f. Representative from the National Economic and Development Authority Member

g. Representative from the Central Bank of the Philippines Member

h. Administrative or representative of the Philippine Coconut Authority Member

i. Director of Forestry or representative Member

j. Bureau of Plant Industry Legal Officer Member

k. Representative from the Importers' and Exporters' Confederation Member



l. Chief, Crop Protection Division, Bureau of Plant Industry Member

m. Postmaster-General or representative Member

n. Chief, Plant Quarantine Section, Bureau of Plant Industry Secretary

Section 19. Duties of the Board. The Plant Quarantine Board shall be the advisory body to assist the Director ofPlant Industry in formulating orders, rules and regulations for the effective implementation of the revisions of thisDecree.

Section 20. Board Meeting. The Board shall meet once every quarter, or may call special meetings whennecessary, provided, that such special meetings shall not be held more than four (4) times annually. Themembers of the Board shall receive a per diem of Two Hundred Pesos (P200.00) each per meeting.

Section 21. Quorum. A majority of the members of the Board shall constitute a quorum.

Section 22. Appropriation of the Plant Quarantine Board. The sum of P300,000.00 annually is, herebyappropriated for the expenses of the Plant Quarantine Board. Provided, that any unexpected amount of the saidsum shall be reverted to the Plant Quarantine Revolving Fund.

Section 23. Penalty Clause. Any person, company or corporation who violates the provisions of this Decree, orforges, counterfeits, alters, defaces and destroys any document issued by virtue of this Decree shall be fined not

more than Twenty Thousand Pesos (P20,000.00) or by imprisonment from prison correctional to prison mayor, orboth, at the discretion of the Court.

Section 24. Separability Clause. If any of the provisions of this Decree shall be invalid, the remainder shall beoperative.

Section 25. Repealing Clause. All l aws, rules and regulations inconsistent with the provisions of this Decree are,hereby superseded or revoked accordingly.

Section 26. Effectivity. This Decree shall take effect immediately upon approval.

Done in the City of Manila, this 10th day of June, in the year of Our Lord, Nineteen Hundred and Seventy-Eight.

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