Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH (20th) CONGRESS 
FIRST REGULAR SESSION 
House Bill No. ______ 
___________________________________________________________________ 
Introduced by 
Rep. ROBERT NAZAL 
___________________________________________________________________ 
AN ACT  
TO PROMOTE THE DEVELOPMENT OF AGRICULTURE COOPERATIVES IN THE 
PHILIPPINES, PROVIDING SUPPORT TO FARMERS AND THEIR 
ASSOCIATIONS, AND FOR OTHER PURPOSES  
EXPLANATORY NOTE 
Agriculture remains a foundational pillar of the Philippine economy, with over twenty 
percent (20%) of the population engaged in farming and related activities. However, 
smallholder farmers who cultivate three hectares or less continue to face challenges 
such as fragmented production, lack of access to affordable credit, low farm-gate prices, 
weak bargaining power, and limited integration into higher-value markets. 
This Act aims to transform the structure and outcomes of Philippine agriculture by 
strengthening and scaling up the role of agriculture cooperatives (agri-coops). This bill 
recognizes that while cooperatives have long been part of rural development strategies, 
their full potential remains untapped due to weak governance, inadequate capital, and 
fragmented policy support. 
This bill addresses these gaps by institutionalizing a comprehensive support ecosystem 
for agri-coops through: 
A.
Barangay-level associations encouraged to register as agri-coops under MC
2015-05; one-stop “Agri-Coop Desks” in every municipality;
B.
Mandatory hiring of a certified Professional Manager and Administrative Officer;
C.
Preference to agri-coops in public procurement for school-feeding, relief, and
nutrition programs, consistent with RA 9184;
July 1, 2025
6:05 pm
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D.
Government banks and the Agricultural Credit Policy Council to earmark ten
percent (10%) of agri-loan portfolios for agri-coops; eligibility for crop-insurance
guarantees;
E.
VAT-exempt sales of raw farm produce; fifty percent (50%) documentary-stamp-tax
cut on loans less than Ten Million (₱10 million); priority to mechanization grants;
F.
VAT-exempt sales of raw farm produce;
G.
Fifty percent (50%) documentary stamp tax cut on loans less than Ten Million
Pesos (PhP 10,000,000.00);
H.
Ladderized curriculum on governance, value-chain development, climate-smart
practices, and digital agriculture, led by DA–TESDA;
I.
National Agri-Coop Marketplace Portal for real-time supply matching with
institutional and export buyers;
J.
Creation of a PhP 5-billion Agri-Coop Development Fund for start-up grants,
equity, and shared facilities; and
K.
Inter-Agency Committee on Agri-Coop Development to craft a 5-year roadmap and
furnish annual progress reports to Congress.
The passage of this Act is vital to ensuring a more modern and resilient agricultural 
economy. It affirms the State’s commitment to economic justice for Filipino farmers and 
constitutes a strategic investment in food security, rural employment, and sustainable 
national development. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
Rep. ROBERT NAZAL 
     Bagong Henerasyon Party-List 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH (20th) CONGRESS 
FIRST REGULAR SESSION 
House Bill No. ______ 
___________________________________________________________________ 
Introduced by 
Rep. ROBERT NAZAL 
___________________________________________________________________ 
AN ACT  
TO PROMOTE THE DEVELOPMENT OF AGRICULTURE COOPERATIVES IN THE 
PHILIPPINES, PROVIDING SUPPORT TO FARMERS AND THEIR 
ASSOCIATIONS, AND FOR OTHER PURPOSES  
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. SHORT TITLE. 
This Act shall be known as the “Agriculture Cooperatives Development Act.” 
SECTION 2. DECLARATION OF POLICY. 
It is hereby declared the policy of the State to foster a self‑reliant and efficient 
agriculture sector by strengthening the collective capacities of Filipino farmers through 
the promotion and development of agriculture cooperatives (agri‑coops). The State 
recognizes agri‑coops as vital instruments in reducing rural poverty, enhancing farm 
productivity, and achieving inclusive and sustainable agriculture and rural development. 
SECTION 3. STATEMENT OF OBJECTIVES.  
This Act shall pursue the following objectives:  
A.
Encourage and facilitate the organization, registration, and professional
management of agri‑coops in every barangay;
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B.​
Enhance farmers’ bargaining power and market access through collective 
marketing, bulk purchasing, and value‑adding activities; 
C.​
Expand farmers’ access to affordable credit, crop insurance, appropriate 
technology, and climate‑resilient farming practices; 
 
D.​
Strengthen linkages between agri‑coops and government agencies, local 
government units (LGUs), private agribusinesses, and financial institutions; and 
 
E.​
Institutionalize an enabling policy environment that provides fiscal incentives, 
capacity‑building, and continuous technical assistance to agri‑coops. 
 
 
SECTION 4. DEFINITION OF TERMS.   
 
As used in this Act:  
 
A.​
Agriculture Cooperative or Agri‑Coop - refers to a primary or secondary 
cooperative organized by farmers, farmworkers, fisherfolk, or their duly recognized 
associations, and registered under Republic Act No. 9520 and its implementing 
rules, whose principal purpose is the production, marketing, or processing of 
agricultural and aquaculture products and services  
 
B.​
Farmer - refers to any natural person primarily engaged in the cultivation of land or 
the growing of crops, raising of livestock, poultry, or aquaculture, either as owner, 
tenant, lessee, or laborer 
  
C.​
Smallholder farmer - refers to a farmer cultivating not more than three (3) hectares 
of agricultural land or producing on an equivalent scale in fisheries and livestock.  
 
D.​
Professional Manager – refers to an individual with proven managerial 
competence and at least three (3) years’ experience in cooperative or 
agribusiness management, duly appointed by the board of directors of an 
agri‑coop 
 
E.​
Administrative Officer – refers to an individual responsible for day‑to‑day 
administrative, financial, and records management functions of an agri‑coop. 
 
 
SECTION 5. REGISTRATION AND FORMATION OF AGRI-COOPS.  
 
A.​
All existing farmers’ associations, irrigators’ associations, and other agricultural 
groups operating at the barangay level are encouraged to register as agri‑coops 
pursuant to Memorandum Circular (MC) No. 2015‑05 of the Cooperative 
Development Authority (CDA) and related guidelines. 
 
 


 
B.​
The Department of Agriculture (DA) and the CDA shall establish a Barangay 
Agri‑Coop Desk in every Municipal Agriculture Office to conduct year‑round 
information campaigns, pre‑membership education seminars, and on‑site 
registration caravans. 
SECTION 6. PROFESSIONAL MANAGEMENT AND ADMINISTRATION. 
 
A.​
Every agri‑coop shall engage a Professional Manager and an Administrative 
Officer who shall be selected and appointed by its board of directors in accordance 
with its bylaws.  
 
B.​
The CDA, in coordination with the DA‑Agribusiness and Marketing Assistance 
Service (AMAS), shall maintain a national registry of accredited agri‑coop 
managers and officers and shall administer a ladderized competency-based 
certification program that shall be reviewed and updated every three (3) years. 
 
 
SECTION 7. PRIORITY IN GOVERNMENT PROCUREMENT. 
 
All national government agencies, GOCCs, LGUs, and state universities and colleges 
implementing school‑based feeding, welfare, disaster relief, or related programs shall 
give preference, whenever feasible, to duly registered agri‑coops in the procurement of 
rice, corn, vegetables, fruits, aquaculture, and livestock products, consistent with 
Republic Act No. 9184 and its IRR. 
 
 
SECTION 8. ACCESS TO CREDIT AND FINANCIAL ASSISTANCE. 
 
A.​
The Land Bank of the Philippines, Development Bank of the Philippines, and the 
Agricultural Credit Policy Council (ACPC) shall earmark at least ten percent (10%) 
of their annual agriculture‑related loan portfolio for direct or wholesale lending to 
agri‑coops at concessional rates. 
 
B.​
Agri‑coops shall be eligible beneficiaries of the existing credit guarantee and crop 
insurance programs of the Philippine Crop Insurance Corporation. 
 
 
SECTION 9. FISCAL INCENTIVES.  
 
Consistent with Section 60 of Republic Act No. 9520, agri‑coops shall enjoy the 
following additional incentives for a period of ten (10) years from registration or from the 
effectivity of this Act, whichever is later:  
 
A.​
Exemption from value‑added tax (VAT) on the sale of raw agricultural products to 
institutional buyers;  
 
 


 
B.​
Reduced documentary stamp tax of Fifty percent (50%) on loan agreements not 
exceeding Ten Million Pesos (PhP 10,000,000.00); and  
 
C.​
Priority access to farm mechanization grants and post‑harvest facilities under the 
Rice Competitiveness Enhancement Fund and similar programs. 
 
SECTION 10. CAPACITY-BUILDING AND TECHNOLOGY SUPPORT.  
 
The DA, in partnership with the Technical Education and Skills Development Authority 
(TESDA), state universities and colleges, and private agritech providers, shall develop a 
dedicated Agri‑Coop Capacity‑Building Curriculum and corresponding certification 
modules 
covering 
governance, 
financial 
literacy, 
value‑chain 
development, 
climate‑smart agriculture, and digital platforms for farm management and e‑commerce. 
 
 
SECTION 11. MARKET LINKAGE AND VALUE CHAIN INTEGRATION. 
 
The DA‑Agribusiness and Marketing Assistance Service (AMAS) shall establish an 
Agri‑Coop Marketplace Portal consolidating supply information from registered 
agri‑coops and facilitating real‑time matching with institutional buyers, exporters, and 
processors. 
 
 
SECTION 12. AGRI-COOP DEVELOPMENT FUND. 
 
There is hereby created an Agri‑Coop Development Fund (ACDF) to be managed by 
the CDA, seeded with an initial appropriation of Five Billion Pesos (PhP 
5,000,000,000.00), to finance start‑up grants, equity investments, shared service 
facilities, and capacity‑building projects for agri‑coops. 
 
 
SECTION 13. LEAD AGENCY.  
 
The CDA shall be the lead agency for the implementation of this Act in coordination with 
the DA, Department of Trade and Industry, Department of Agrarian Reform, Department 
of Science and Technology, LGUs, and other agencies. The CDA shall coordinate all 
national activities under this Act, including oversight of the Agri‑Coop Development 
Fund and implementation of the five-year roadmap. 
 
 
SECTION 14. INTER-AGENCY COMMITTEE. 
 
An Inter‑Agency Committee on Agri‑Coop Development (IAC‑ACD) is hereby 
constituted, chaired by the CDA and co‑chaired by the DA, to formulate a five‑year 
National Agri‑Coop Development Roadmap and oversee its implementation. 
 
 
 


 
 
 
 
 
SECTION 15. MONITORING AND EVALUATION.  
 
The IAC‑ACD shall submit to Congress an annual report on the status of agri‑coops 
nationwide, utilization of the ACDF, and outcome indicators such as farmer income, 
cooperative survival rate, and market share. 
 
 
SECTION 16. APPROPRIATIONS.  
 
The funds necessary to carry out the initial implementation of this Act shall be charged 
against the current year’s appropriations of the CDA, DA, and other concerned 
agencies. Thereafter, such sums as may be necessary for the continued implementation 
of this Act shall be included in the annual General Appropriations Act. 
 
 
SECTION 17. IMPLEMENTING RULES AND REGULATIONS.  
 
The CDA and the DA, in consultation with concerned agencies, agri‑coop federations, 
and civil‑society organizations, shall promulgate the rules and regulations for the 
effective implementation of this Act within sixty (60) days from its effectivity. 
 
 
SECTION 18. SEPARABILITY CLAUSE.  
 
If any provision of this Act is declared unconstitutional or invalid, the remainder hereof 
shall not be affected and shall remain in full force and effect. 
 
 
SECTION 19. REPEALING CLAUSE. 
 
All laws, presidential decrees, executive orders, rules, and regulations, or parts thereof, 
inconsistent with the provisions of this Act are hereby repealed or modified accordingly. 
 
 
SECTION 20. EFFECTIVITY. 
 
This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in 
at least two (2) newspapers of general circulation. 
 
 
 
Approved,