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? RECEIVED
Dave 11 AUG 2025

POUS

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 3470.

Introduced by Representative Jan Rurik D. Padiemnos, GP (Galing sa Puso) Party-List

EXPLANATORY NOTE

The Constitution declares that the State must promote agricultural development and
protect Filipino farmers from unfair competition. It also requires the State to give farmers
adequate support for production and marketing.

The Rice Tariffication Law (Republic Act No. 11203, as amended) removed import
limits on rice and replaced them with tariffs. It also created the Rice Competitiveness
Enhancement Fund (RCEF) to boost productivity through mechanization, quality seeds, credit,
and training. The goal of these reforms was to stabilize prices, secure supply, and enhance the
competitiveness of Filipino farmers.

However, farmer groups have pointed out problems that continue to hurt the agriculture
sector. Large volumes of imported rice still arrive during peak harvest seasons. This resulted
to pushing farmgate prices below production cost. Support from RCEF is often delayed, and
many farmers are unable to access direct assistance. Weak enforcement has also allowed
hoarding, price manipulation, and other unfair market practices lo persist. The National Food
Authority (NFA), whose powers were greatly reduced under the law, can no longer fully
perform its role in market stabilization and food security. This leaves farmers more susceptible
to sudden price drops, while consumers continue to face price spikes.

This bill addresses these gaps by restoring timely protection for farmers, strengthening
market safeguards, and ensuring that government interventions deliver benefits where they are
needed most.

In view of the foregoing, the immediate passage of this bill is earnestly sought
ade

ATTY. JAN RURIK D. PADIERNOS
GP Galing sa Puso) Party-List

PRES
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 3470

Introduced by Representative Jan Rurik D. Padiernos, GP (Galing sa Puso) Party-List

AN ACT
FURTHER PROMOTING THE WELFARE OF THE LOCAL FARMERS BY
AMENDING REPUBLIC ACT NO. 8178, OTHERWISE KNOWN AS THE
“AGRICULTURAL TARIFFICATION ACT,” AS AMENDED BY REPUBLIC ACT
NOS. 11203 AND 12078

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

SECTION 1. A new section designated as Section 8-A under Republic Act No. 8178, as
amended by Republic Act No. 11203 and Republic Act No. 12078, is hereby inserted to read as
follows:

“SECTION 8-A. SEASONAL SAFEGUARD ON RICE IMPORTS. — NO RICE
IMPORT SHIPMENTS SHALL BE RELEASED FOR DOMESTIC CIRCULATION
WITHIN SIXTY (60) DAYS BEFORE OR AFTER THE START OF THE MAIN OR
SECONDARY HARVEST SEASON IN ANY GIVEN REGION, AS DETERMINED BY
THE DEPARTMENT OF AGRICULTURE (DA). THIS RESTRICTION SHALL NOT
APPLY IN CASES OF A DECLARED NATIONAL FOOD SECURITY EMERGENCY.

THE DA SHALL PUBLISH THE OFFICIAL HARVEST PERIOD SCHEDULE
FOR EACH REGION AT THE BEGINNING OF EVERY CALENDAR YEAR ON THE
DA WEBSITE. EXCEPTIONS TO THIS PROVISION (SUCH AS IN CASES OF FOOD
SECURITY EMERGENCIES) SHALL BE MADE AT THE DISCRETION OF THE
DA, WITH THE PRIOR PUBLICATION OF SUCH EXCEPTIONS ON THE DA
WEBSITE.”

SEC. 2. Section 16 of Republic Act No. 8178, as amended, is hereby further amended to
read as follows:

“SEC. 16. Rice Competitiveness Enhancement Fund. — There is hereby created a Rice
Competitiveness Enhancement Fund, which shall be sourced from all tariffs collected
from the importation of rice. The RCEF shall consist of an annual appropriation of
Thirty billion pesos (P30,000,000,000.00) until the year 2031, following the approval
of this Act, and shall be automatically credited to a Special Account in the General


Fund of the National Treasury which shall be established within ninety (90) days from
the effectivity of this Act.

Xxx

Subject to the usual accounting and auditing rules and regulations, the RCEF shall be
allocated and disbursed to rice-producing areas, as follows:

(a) Rice Farm Machineries and Equipment — Nine-biltion-peses-(P9,000,000,000-00)
EIGHT BILLION PESOS (P8,000,000,000.00) of the RCEF shall be released to and
implemented by the Philippine Center for Postharvest Development and Mechanization
(PHilMech) as grant in kind to eligible farmers associations, registered rice
cooperatives, and LGUs, according to their choice, in the form of rice farm equipment,
such as tillers, tractors, seeders, threshers, rice planters, harvesters, irrigation pumps,
small solar irrigation, reapers, dryers, millers and postharvest and processing fa
such as warehouses, grain storage facilities, and drying facilities: Provided, That the
PHilMech shall procure from accredited manufacturers and local machine fabricators
to spur the establishment of farm-level fabrication, repair, and maintenance of farm
implements and equipment and to assist in the promotion of locally manufactured farm
machineries and equipment and ensure their maximum utilization:

Provided, further, That Four hundred twenty-five million pesos (P425,000,000.00) of
the allocation for rice farm machineries and equipment under this subparagraph shall
be allotted for the promotion, establishment, support, and development of Fabrication,
Repair, and Maintenance Centers (FARM-Cs) of farm machinery, equipment, and
tools, including grants to be given every year to at least two (2) FARM-Cs in each
RCEF rice-producing province. The PHiiMech shall continuously collaborate with
existing and emerging FARM-Cs nationwide. For this purpose, FARM-Cs shall set up
machine shops and fabrication hubs in rural areas which will repair the existing
agricultural equipment of farmers cooperatives, associations, and LGUs given under
the RCEF.

(b) Rice Seed Development, Propagation, and Promotion. — Six-bitlion—-peses

Four billion pesos (P4,000,000,000.00) of the RCEF shall be
released to and implemented by the Philippine Rice Research Institute (PhilRice) and
used for the development, propagation, distribution, and promotion of high quality
inbred rice seeds to rice farmers and the organization of rice farmers into seed growers
associations and/or cooperatives engaged in seed production and trade.

(C) DIRECT FARMER SUPPORT - NINE BILLION PESOS (P9,000,000,000.00)
OF THE RCEF SHALL BE ALLOCATED FOR DIRECT CASH ASSISTANCE,
FULLY SUBSIDIZED CROP INSURANCE, AND LOW-INTEREST
PRODUCTION CREDIT FOR REGISTERED RICE FARMERS. THE
DEPARTMENT OF AGRICULTURE (DA) SHALL PRIORITIZE FARMERS
TILLING UP TO TWO (2) HECTARES AND LISTED IN THE REGISTRY
SYSTEM FOR BASIC SECTORS IN AGRICULTURE (RSBSA). AT LEAST
FIFTY PERCENT (50%) OF THE CASH ASSISTANCE PORTION SHALL BE
RELEASED AUTOMATICALLY WITHIN THIRTY (30) DAYS WHENEVER
THE AVERAGE FARMGATE PRICE OF PALAY FALLS BELOW THE
PREVAILING COST OF PRODUCTION, AS DETERMINED BY THE DA.


(D) POST-HARVEST FACILITIES — SIX BILLION FIVE HUNDRED
MILLION PESOS (P6,500,000,000.00) OF THE RCEF SHALL BE
ALLOCATED FOR THE CONSTRUCTION, REPAIR, AND MAINTENANCE
OF DRYING, MILLING, AND STORAGE FACILITIES, PRIORITIZING
FARMER COOPERATIVES AND ASSOCIATIONS IN HIGH-PRODUCTION
AND HIGH-POVERTY INCIDENCE PROVINCES.

(E) OTHER PRIORITY PROGRAMS - TWO BILLION FIVE HUNDRED
MILLION PESOS (P2,500,000,000.00) OF THE RCEF SHALL BE


ALLOCATED FOR OTHER PROGRAMS AND PROJECTS THAT
PROMOTE FARMERS’ PRODUCTIVITY, RICE SUPPLY RESILIENCY,
AND ADDRESS FOOD SECURITY EMERGENCIES, INCLUDING BUT NOT
LIMITED TO: RICE TRAINING AND EXTENSION SERVICES; PEST AND
DISEASE MANAGEMENT; SOLAR-POWERED OR WATER
IMPOUNDING IRRIGATION PROJECTS; SOIL HEALTH
IMPROVEMENT; AND FARMING SUPPORT PROGRAMS OF THE
DEPARTMENT OF AGRICULTURE (DA) AND THE NATIONAL
IRRIGATION ADMINISTRATION (NIA) ON CONTRACT FARMING.

The BOC and the DA shall, at the end of each year, submit separate reports on the
annual remittance and disbursement of funds to the Senate Committee on Agriculture,
Food and Agrarian Reform and disbursement of funds to the Senate Committee on
Agriculture, Food and Agrarian Reform and the House Committee on Agriculture and
Food: Provided, That the amounts herein allocated shall be reviewed on the third year
of the effectivity of this Act for possible revisions should intervention priorities
change: Provided, further, That preferential attention should be given to rice farmers,
cooperatives, and associations adversely affected by the tarrification of the
quantitative import restriction on rice in accordance with the thrust and priorities of
Republic Act No. 8435, otherwise known as the "Agriculture and Fisheries
Modernization Act of 1997", as amended, and the Philippine Development Plan
(PDP). The increase or decrease of farmers’ incomes shali be the primary benchmark
in granting these interventions.

The Congressional Oversight Committee on Agricultural and Fisheries Modemization
(COCAFM) shall conduct a periodic review of the use of the RCEF.

The Philippine Institute for Development Studies (PIDS) shall conduct an independent
baseline study, as well as mid-term and end-term evaluation of this Act, which shal!
be submitted to the COCAFM.”

SEC. 3. Section 17 of Republic Act No. 8178, as amended, is hereby further amended to
read as follows:

“SEC. 17. Beneficiaries of the RCEF. - The beneficiaries of the RCEF shall be these
ALL-farmers and farmworkers listed in the RSBSA and rice cooperatives and
associations accredited by the DA. Within one hundred eighty (180) days from the
effectivity of this Act and-every-year-thereafter-the DA, in consultation with farmers’
cooperatives and organizations and LGUs, shall validate and update the master list of
eligible beneficiaries to ensure that those listed are legitimate farmers, farmworkers,
and rice cooperatives and associations

THE DA SHALL MAINTAIN AN OPEN AND CONTINUOUS
REGISTRATION SYSTEM TO ENSURE THAT ALL LEGITIMATE RICE
FARMERS AND FARMWORKERS ARE PROMPTLY INCLUDED. NO
ELIGIBLE FARMER OR FARMWORKER SHALL BE DENIED BENEFITS
UNDER THIS FUND DUE TO DELAYS IN RSBSA REGISTRATION OR
VALIDATION.


In order to focus on the targeted rice farmer beneficiaries, cooperatives and associations
for the Rice Fund, the list of rice producing provinces and LGUs, i
PhilRice-as-of-2015-2018- SHALL BE DETERMINED AND UPDATED EVERY
THREE (3) YEARS BY PHILRICE, IN CONSULTATION WITH THE DA AND
FARMER ORGANIZATIONS, -be-the-basis and shall be added to the roadmap as
an appendix.

THE DA SHALL PUBLISH PERIODIC REPORTS ON RCEF UTILIZATION
AND PROJECT IMPLEMENTATION, ACCESSIBLE TO THE PUBLIC
THROUGH AN RCEF TRANSPARENCY PORTAL, UPDATED MONTHLY.
THE COMMISSION ON AUDIT SHALL INCLUDE THE RCEF IN ITS
ANNUAL AUDIT.”

SEC. 4. A new designated as Section 18 under R.A. No. 8178, as amended , is hereby
inserted to read as follows:

“SEC. 18. EXPANDED ROLE OF THE NATIONAL FOOD AUTHORITY. —
THE NATIONAL FOOD AUTHORITY (NFA) SHALL BE AUTHORIZED TO:

(A) PROCURE PALAY FROM FARMERS AND DULY REGISTERED
FARMERS’ COOPERATIVES AND ASSOCIATIONS AT A SUPPORT PRICE
DETERMINED ANNUALLY BY THE DEPARTMENT OF AGRICULTURE
(DA) IN CONSULTATION WITH THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY (NEDA) AND FARMER
REPRESENTATIVES.

(B) PRIORITIZE PROCUREMENT FROM SMALL FARMERS OWNING OR
CULTIVATING NOT MORE THAN TWO (2) HECTARES, GIVING
PREFERENCE TO THOSE DULY REGISTERED IN THE REGISTRY
SYSTEM FOR BASIC SECTORS IN AGRICULTURE (RSBSA).

(C) MAINTAIN A BUFFER STOCK OF AT LEAST NINE (9) DAYS AND UP
TO THIRTY (30) DAYS OF NATIONAL RICE CONSUMPTION, AS
CIRCUMSTANCES REQUIRE, SOURCED PRIMARILY FROM DOMESTIC
PROCUREMENT, FOR USE IN BOTH DISASTER RELIEF AND MARKET
STABILIZATION.

(D) RELEASE RICE STOCKS TO THE MARKET WITHIN SEVEN (7) DAYS:
UPON CONFIRMATION BY THE DA OF ABNORMAL PRICE SPIKES IN
THE DOMESTIC MARKET THREATENING PUBLIC WELFARE, IN
ORDER TO STABILIZE PRICES AND ENSURE CONSUMER ACCESS TO
AFFORDABLE RICE.

(E) IMPORT RICE ONLY IN CASES OF A DECLARED NATIONAL
EMERGENCY OR SEVERE SHORTAGE IN DOMESTIC RICE SUPPLY, AS
DETERMINED BY THE DA AND APPROVED BY THE PRESIDENT, UPON
RECOMMENDATION OF NEDA AND IN CONSULTATION WITH THE
DEPARTMENT OF FINANCE (DOF). THE VOLUME OF IMPORTS SHALL
BE LIMITED TO THE AMOUNT NECESSARY TO ADDRESS THE
SHORTAGE AND SHALL NOT UNDERMINE DOMESTIC PROCUREMENT.


THE NFA SHALL PUBLISH ON ITS OFFICIAL WEBSITE ALL
PROCUREMENT PRICES, VOLUMES PURCHASED, BUFFER STOCK
LEVELS, AND DETAILS OF RICE RELEASES, UPDATED MONTHLY, TO
ENSURE TRANSPARENCY AND PUBLIC ACCOUNTABILITY.”

SEC. 5. The subsequent Sections of R.A. No. 8178, as amended, shall be renumbered
accordingly.

SEC. 6. If any provision of this Act is declared unconstitutional, the remaining provisions
shall remain in full force and effect.

SEC. 7. All laws, decrees, executive orders, rules and regulations inconsistent with this Act
are hereby repealed or modified accordingly.

SEC. 8. This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or a newspaper of general circulation.

Approved,