Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
‘SEVENTEENTH CONGRESS

First Regular Session

House Bill No. D836

Introduced by Hon. Delphine Gan Lee and Hon. Orestes T. Salon

EXPLANATORY NOTE

‘Small-scale farming in general is rapidly becoming a dying profession. Citing recent
studies, "The average age of the Filipino farmer is 57. Assuming an average life span of 70,
we might reach a critical shortage of farmers in just 15 years,” said Asterio Saliot, director of
the Department of Agriculture - Agricultural Training Institute. This raises alarm over the
possible future gap in human resource requirements for agriculture and poses a threat to
food security and sustainability. For STI Chairman Eusebio Tanco, persuading young
Filipinos and their parents to consider the agriculture track is a tough sell, thinking there is no
viable career in the industry. STI said the condition of farmers in agricultural areas also
dissuades the youth from pursuing higher education in related courses. “Even a typical
farmer would not encourage his children to get into agriculture as a career," the institution
said.

“The average level of education of a farmer is grade five only,” he added. According to
Saliot, farmers’ age and limited education make them less receptive to new farming
technologies that can boost yields in the face of growing losses from volatile weather. Weak
government policies and programs, an excessive reliance on agricultural imports, and
corruption, have taken their toll on the agricultural sector, say experts. According to the 2012
Bureau of Agricultural Statistics, the agricultural sector employs an estimated 12 million
people, making up 33 percent of the country's labor force. About 70 percent of the rural poor
are farmers and fishermen.

Compounding the problem is a younger generation that is, largely, leaving rural areas
nationwide, depleting the poo! of potential agricultural workers. “The problem with farming is
that it is associated with poverty. So no farmer would want their children to become farmers,
said Jocelyn Alma Badiola, former executive director of COCAFM and deputy executive
director for Department of Agriculture's Agricultural Credit Policy Council (DA-ACPC). Most
rural families instead want their children to pursue more lucrative jobs in commercial centers
near Manila. “It is too late to do something about our current farmers. We must now change
the mind-set of the younger generation and make farming appealing for them,” said Jose
Rene Gayo, president of local NGO Foundation for People Development. The foundation is
working with the government to offer scholarship programs that combine classroom lectures

itp: irinnewsorgeature/2012102/26/fipino-farmers-dying-breed

https rappler.com/business/160106-tan-caktiong-st-agrcutture-education philippines.


and field training in farming to young people with the right skills and motivation who have
dropped out of school.

Working with small-scale farmers is also a means to build community goodwill,
contributing to a company's license to operate. Buying locally from smallholders may be
part of a company's socially responsible strategy and become an advertising slogan in
the highly competitive environment in which it operates. Customers are aware of and
may value local procurement from small-scale farmers in the community as long as the
product is of a good quality.

Itis a given that demand is there with the constant rise of population in general, small-
scale farmers need only be given the opportunity. This bill gives them a chance to dream
and reach for a better life. As legislators, a helping hand is all that is required since they
have the requirements needed to lift themselves up from poverty already. We are after
all here to serve the people and if through this bill we can be in no small part be of
service to them to achieve that, it is our obligation as legislators to support and act for
the betterment of the Filipino people.

The urgent passing of this bill is thus earnestly sought.

SRR

ORESTES T. SALON
Sectoral Representative
AGRI Party-List AGRI Party-List



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH CONGRESS

First Regular Session

5336

House Bill No.

Introduced by Hon. Delphine Gan Lee

AN ACT
PROVIDING INCENTIVES AND BENEFITS TO PRIVATE COMPANIES FOR THE
PURCHASE OF PRODUCE OF SMALL-SCALE AGRICULTURAL FARMERS, AND FOR
OTHER PURPOSES.

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

Section 1. Title. - This Act shall be known as the “Small-Scale Agricultural Farming
Incentives and Benefits Act”

Section 2. Declaration Policy. — It is the policy of the State to liberate the people from
poverty by providing a guaranteed market for the products of the farmers, thereby promoting
full employment in the agricultural sector, presently the sector with the highest poverty
incidence.

Section 3. Guaranteed Market for Farmers. - Private Companies are hereby encouraged
to buy directly from small-scale agricultural farms identified by the Department of Agriculture
(DA) and the Department of Social Welfare and Development (DSWD) with the goal of
reducing poverty in our country. The private companies who will buy and who can issue
guaranty letter for the purchase of the produce of small-scale agricultural farmers shall be
entitied to incentives as defined under Section 4 hereof.

Section 4. Incentives. — Incentives shall be given to the private companies who will buy and
who are willing to issue a letter guaranty for the purchase of the produce of the small-scale
local farmers:

All expenses incurred in the acquisition of local produce from the small-scale
agricultural farmers identified in pursuance with this Act as endorsed by the DA and the
DSWD shall constitute an allowable deduction from the income of the buyer for
income tax purposes, in accordance with the provisions of National Internal Revenue
Code of 1997, as amended


Section 5. Price Ceiling. - The DA and the Department of Trade and Industry (DT!) are
hereby mandated to place a price ceiling on the agricultural produce to ensure that the net
income of the small-scale agricultural farmers shall not fall below the poverty threshold of
their respective localities/regions.

Section 6. Implementing Rules and Regulations. - Within ninety (60) days from the
approval of this Act, the Secretary of the Department of Agriculture and the Secretary of the
Department of Social Welfare and Development and other appropriate government
agencies, shall promulgate the rules and regulations to implement the provisions of this Act.
Such rules and regulations shall take effect fifteen (15) days after its publication in a
newspaper of general circulation.

Section 7. Separability Clat ‘Should any provision of this Act be subsequently declared
‘as unconstitutional, the same shall not affect the validity or the legality of the other
provisions.

Section 8. Repealing Clause. - All laws, decrees, orders, rules and regulations, other
issuances, or parts thereof inconsistent with the provisions of this Act are hereby repealed or
amended accordingly.

Section 9. Effectivity. - This Act shall take effect fifteen (15) days after publication in the
Official Gazette or two (2) newspapers of general circulation

Approved,