“EPKES,
Republic of the Philippines ak BEERESED

HOUSE OF REPRESENTATIVES Mie GN
Quezon City ‘> RECEIVED ©
IS yy, 10 SEP 2013

SIXTEENTH CONGRESS.
First Regular Session

2804

House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
PRESCRIBING THE STRENGTHENING OF THE NATIONAL EXTENSION SYSTEM
TO ACCELERATE AGRICULTURE AND FISHERIES DEVELOPMENT,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Through the years, the state of Philippine agriculture has been in a downward
spiral. The country has continually faced the problem of high food cost and it has the
highest food prices among ASEAN countries. Our recent experience where there was
shortage of rice only shows that we still need to strengthen our agricultural base. The
high cost of food, it being wage goods, has severely affected the competitiveness of our
country's industry especially those in engaged in export. Making matters worse is the
problem of high rural poverty.

Agriculture and Fisheries extension is central to growth and development of both
the agriculture and fisheries sector. If we are able to manage well agriculture
knowledge through extension services will be crucial to agriculture growth and
development. This enables, empowers and gives producers the competitive edge.
Extension, along with the complementing Research and Development (R&D), ensures
the highest return of investment (ROI) among policy instruments which makes it worth
investing in

Agriculture growth emanates from knowledge-intensive practices such as crop
intensification. However, knowledge-intensive agriculture (KIA) is dependent on a
dynamic, responsive agriculture and fisheries extension with strong linkage to

I



knowledge generation. This is where our problem lies since Philippine Agriculture and
Fisheries Extension Services (AFES) face serious problems which affect its efficiency
and effectiveness. Being highly fragmented, it therefore lacks coherent direction. Also,
our present AFES is composed of demoralized and aging personnel who have not fully
recovered from the effects of decentralization which results to weak research-extension
linkage, underinvestment, and highly politicized structure among others.

The proposed Agriculture and Fisheries Extension bill will address the current
problems and more. The bill seeks to:

1, Strengthen the country's extension system by decentralizing it to the
appropriate level of political unit that provides a viable economic unit for
agriculture development ie., the province;

2. Making the national government pay for the salaries and wages of extension
personnel under the administrative direction of the provincial government;

3. Professionalizing and standardizing the salaries and wages of the Local
Government Unit (LGU) extension personnel to that of equivalent positions in the
national government;

4. Creating a national agency, the Philippine Agriculture & Fisheries Extension
Agency (PAFEA) to orchestrate, provide national directions, set standards of
performance, and provide institutionalized financial and technical support to the
LGUs.

In view of the paramount importance of this proposal, its immediate approval is

eamestly sought.

DIOSDADO M. PAGAL ARROYO GLGRIA MACAPAGAL ARROYO
Second District, Camarines Sur Second District, Pampanga



Republic of the Philippi
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No._2804

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
PRESCRIBING THE STRENGTHENING OF THE NATIONAL EXTENSION SYSTEM
TO ACCELERATE AGRICULTURE AND FISHERIES DEVELOPMENT,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

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

ARTICLE I. GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the “Agriculture and
Fisheries Extension Act of 2013."

SECTION 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 the nation for the benefit of the people;
and an expanding productivity as the key to raising the quality of life for all, especially
the underprivileged.

The State shall promote industrialization and full employment based on sound
agricultural development and agrarian reform, through industries that make full and
efficient use of human and natural resources, and which are competitive in both
domestic and foreign markets. In pursuit of these goals, all sectors of the economy and
all regions of the country shall be given optimum opportunity to develop.


Thus, it is hereby declared the policy of the State to enable those who belong to
the agriculture and fisheries sector to participate and share in the fruits of development
and growth in a manner that utilizes the nation's resources in the most efficient and
sustainable way possible by establishing a more equitable access to assets, income,
basic and support services and infrastructure.

The State shall give priority to promote science, technology and human resource
development as essentials for national development and progress

The State shall utilize research results through information, extension and
communication services. It shall support the development of a national extension
system that will help accelerate the transformation of agriculture and fisheries sectors of
the Country from a resource-based industry to a knowledge and technology-based and
market-oriented industry.

The State shall adopt the market approach in assisting the agriculture and
fisheries sector while recognizing the contribution of these sectors to food security,
environmental protection, and balanced urban and rural development, without
neglecting the welfare of the consumers, especially the lower income groups. The State
shall promote market-oriented policies in agricultural production to encourage farmers to.
shift to more profitable crops.

The State shall empower the agriculture and fisheries sector to develop and
sustain themselves to meet present and future needs of the Country. Toward this end,
the State shall ensure the establishment and development of the agriculture and
fisheries extension system that increases and sustains its contributions to the
achievement of the goals of agriculture modernization as mandated by Republic Act
8435: a) Poverty Alleviation and Social Equity; b) Food Security; c) Rational Use of
Resources and Sustainable Development; d) Global Competitiveness; and e) People
Empowerment.

SECTION 3. Definition of Terms. - As used in this Act, the term:

|. "Agriculturist" refers to a person who is a graduate of a bachelor's degree in
agriculture or any related course registered and licensed with the Professional
Regulation Commission or Civil Service Commission; who performs
communication, curriculum development, econometrics, statistical work, training
and extension works in agriculture production, trade, and processing including
crop and animal protection, food safety, agricultural and natural resource
economics, and marketing;

2. “Agricultural Engineer” refers to a person registered with the Professional
Regulation Commission or Civil Service Commission performing training and
extension work in agricultural and fisheries mechanization, irrigation, drainage,
soil and water conservation, agricultural buildings and structures, agricultural
processing and postharvest facilities;


3. "Catalytic Financing’ - the provision of financial support to achieve excellence,
equity and increased investment by the local governments in the implementation
of agriculture and fisheries extension services towards the achievement of
national goals;

4. "Civil Society’ - refers to the group of organizations whose uncoerced
collective action revolves around shared interests, purposes and values. Civil
societies are organizations composed of community groups, women's
organizations, faith-based organizations, professional associations, trade unions,
self-help groups, social movements, business associations, coalitions and
advocacy groups;

5. “Consumers” - are those that acquire goods or services for direct use or
ownership rather than for resale or use in production and manufacturing;

6. “Empowerment* - is the expansion of assets and capabilities of people to
participate in, negotiate with, influence, control and hold accountable institutions
that affect their lives; it involves providing authority, responsibility, and
information to people directly engaged on agriculture and fishery production,
primarily at the level of the farmers, fisherfolk and those engaged in food and
non-food production and processing, in order to give them enhanced economics
rights;

7. "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 and fisheries areas;

8. "Fisheries Technologist" refers to a person who is a graduate of a four year
course in Fisheries and registered and licensed with the Professional Regulation
Commission or Civil Service Commission performing training and extension on
fisheries, marine resources and aquaculture;

9. "Food Security" - refers to the policy objective, plan and strategy of meeting
the food requirements of the present and future generations, of Filipinos in
substantial quantity, ensuring the availability and affordability of safe and
nutritious food to all, either through local production or importation, or both,
based on the country's existing and potential resource endowment and related
production advantages, and consistent with the overall national development
objectives and policies;

10. “Formula grants" - these are national government financial transfers to the
local governments to support the regular expenditures in the provision of
Agriculture and Fisheries Extension Services (AFES) based on a formula that
takes into consideration, among others, the level of economic development of a
municipality or a province;


11. “Gross Value Added in Agriculture" - refers to the total value, excluding the
value of non-agricultural or fisheries intermediate inputs, of goods and services
contributed by the agricultural and fisheries sectors;

12, "Knowledge Management" - is a systematic approach which invents,
understands, shares, creates and utilizes knowledge in order to create values
such as customer's value, employee's value, stockholder's value, business
partner's value and social value to achieve the vision and goal of the
organization;

13, "Partnership" - a relationship between and among agencies that is
characterized by mutual cooperation and responsibility towards the achievement
of shared goals;

14. "Private sector" - the part of a nation's economy that is not owned and
managed by the government;

15. "Producer" - one that produces, especially a person or organization, that
produces goods or services for sale;

16. "RBOs" - are rural based organizations or people's organizations composed
of various sectors of the rural community such as farmers, fisherfolk, growers,
seed producers, women, and youth;

17. "Targeted financial transfer" - is a financial support provided by the national
government to the LGUs in support of national goals or programs;

18. "Value chain" - is a process from seed to shelf or from the producers to the
consumers, showing activities and interventions offfor a chosen commodity/ties
based on understanding the needs for such interventions;

19. "Veterinarian" refers to a person registered with the Professional Regulation
Commission performing professional services related to the practice of veterinary
medicine including training and extension on disease prevention control and
animal health.

SECTION 4. Statement of Goals. - Agricultural extension is a policy instrument
for empowering individuals and organizations; public agriculture extension shall
contribute towards the achievement of the national goals of agriculture development.

SECTION 5. Statement of Objectives. - Agriculture and fisheries extension shall
contribute to the following objectives:

a) To enhance the economic rights of Producers, especially the poor, to use the
most appropriate technologies they feel will give them the best profit and to choose the


most affordable loans in producing the quality and quantity of products and to sell their
products freely; Traders, to move goods in the expectation of profits unconstrained by
serious lack of knowledge and information; and Consumers, to buy safe and nutritious
foods at the lowest prices possible.

b) To manage knowledge in strengthening the individual and organizational
capabilities of producers, traders and consumers; and

©) To help create an enabling environment that strengthens the linkage between
knowledge generation and knowledge use and encourages increased investment in
agriculture extension by the private sector, civil society, and Local Governments.

SECTION 6. Clients. - The clients of Philippine agricultural and fisheries
extension system are the producers (farmers, fisherfolk, agricultural processors),
traders, and consumers along the value chain, Public extension shall focus on the
delivery of public goods. The priority clients shall be the economically and socially
disadvantaged groups in agriculture and fisheries. Local Government Units shall put
primary attention to these groups in the provision of extension services through formula
grants and targeted and catalytic financing of National Government Agencies

ARTICLE II. Structure and Organization

SECTION 7. Creation of the Philippine Agriculture and Fisheries Extension
Agency (PAFEA). — The Agricultural Training Institute is hereby strengthened and
transformed into the Philippine Agriculture and Fisheries Extension Agency (PAFEA). It
shall serve as the national apex organization for a unified and efficient agriculture and
fisheries extension system of the country. It shall ensure that public extension services
meet the national standards of performance and effectively contribute towards the
achievement of the national goals of agriculture and fisheries modernization

The Philippine Agricultural and Fisheries Extension Agency (PAFEA), shall
coordinate all government extension programs in agriculture and fisheries.

SECTION 8. Powers and Functions. -

a) Provide direction in the development of national extension policies in
agriculture and fisheries;

b) Orchestrate the development of extension strategic plan including its financing
in coordination with the Department of Budget and Management and other
stakeholders;

©) Develop and implement national policies and programs aimed at the
continuous improvement of the quality of extension methods, products, and services


towards a more efficient and client-responsive national agriculture and fisheries
knowledge management system;

d) Develop a system towards the management of the country's extension
resources for agriculture and fisheries to ensure a sustainable, participatory and
efficient system of funding for information, education, and communication materials
(IEC) and to achieve optimal efficiency along the value chain;

e) Provide leadership in the development and implementation of the National
Agriculture & Fisheries Knowledge Network (NAFKN) in agriculture and fisheries of the
Department through a system of partnerships that may include, but not be limited to, the
(Local Government Units) LGUs, the regional development council (RDC), the Regional
Agriculture and Fisheries Council (RAFCs), the academe especially the SUCs of
agriculture and fisheries, the Civil Society Organizations (CSOs), producers, rural based
organizations (RBOs) and the private sector;

f) Provide national leadership in consultation with agriculture and fisheries
councils (AFCs), in developing extension partnerships towards increased investment
and private sector participation;

g) Team up with state universities and colleges (SUCs) of agriculture and
fisheries as key partners in the implementation of the national programs specially in the
areas of extension innovations, national training, and monitoring and evaluation of
extension institutions and programs;

h) Provide leadership in developing and implementing a national system of
‘strengthening institutional extension capacities at all levels of implementation; and

i) In coordination with the Department of Budget and Management (DBM); the
Local Government Units, The Department of Local governments, and other
stakeholders, the PAFEA shall set up a review mechanism for all agriculture and
fisheries extension programs and budgets of national agencies to determine cost-
effectiveness of operations and potential impacts to national goals.

SECTION 9. Structure of PAFEA. - It shall be headed by a Director General
(DG) with a rank of Assistant Secretary to be assisted by two Deputy Director Generals
(DDG) and they shall be appointed by the President upon recommendation of the
Secretary of Agriculture from a list submitted by an independent Search Committee
organized and based on the qualification standards set by the Council for Extension
Research Development in Agriculture and Fisheries (CERDAF). They shall have a fixed
tenure of six (6) years and may be re-appointed for an additional term of four (4) years
based on very satisfactory performance.

SECTION 10. The Council for Extension Research Development in Agriculture
and Fisheries (CERDAF) — The Council for Extension Research Development in
Agriculture and Fisheries (CERDAF) is hereby strengthened. It shall ensure that the


agriculture and fisheries research, development and extension policies and programs of
the Department are consistent with national policies and priorities.

a) Functions and duties of the Council for Extension Research Development in
Agriculture and Fisheries (CERDAF).

(1) Approve policies covering program priorities and resource allocation in
research and extension of all agencies of the Department;

(2) Enhance coordination and linkage of government institutions involved in
agriculture and fisheries research, development and extension;

(3) Strengthen the participation of various stakeholders, especially the civil
society, local government units, and private sector in the development of National
Research Development and Extension (NRDE) agenda and programs;

(4) Strengthen the institutional efficiency of the NRDE system, including the
setting up of a monitoring and evaluation system on the effectiveness and
efficiency of its various components; and

(5) Set guidelines in the use of services and facilities, collection of fees and in the

utilization of income.

SECTION 11. Composition of the Council for Extension Research Development
in Agriculture and Fisheries (CERDAF). - The Undersecretary for Policy and Planning
of the DA shall be the Chair of the Council. There shall be a Vice-Chair to be elected
from among the other members of the Board. The Executive Director of the Philippine
Agriculture and Fisheries Extension Agency (PAFEA) and the Director of the Bureau of
Agriculture Research (BAR) shall be ex officio members and the Chair shall appoint the
Executive Director of PAFEA as Secretary of the Council. The CERDAF shall have the
following as members:

(1) Designated Undersecretaries for Policy & Planning of the following
Departments

i. Department of Science and Technology;
ii, Department of Environment and Natural Resources;
iii, Department of Agrarian Reform;

(2) Presidents of the following LGU organizations:
i. League of Provinces;

ii, Union of Local Authorities of the Philippines (ULAP);


(3) Four (4) CSO representatives from the rural youth, rural women, and farmer,
and fisherfolk sectors as identified and selected by the Department of Agriculture;

(4) One (1) private sector representative designated by the Management
Association of the Philippines (MAP);

(5) Representatives from scientific/professional organizations/societies;

(6) One representative each from the following national professional
organizations: i) agriculturists; ii) agricultural engineers; ili) fishery technologists
and iv) veterinarians.

SECTION 12. Offices under the PAFEA. — To carty out the functions of the
‘Agency, PAFEA shall have four technical offices as follows: (1) Policy Development; (2)
Extension Innovations & National Training; (3) Knowledge Products & Services
Development; and (4) Extension Governance & Partnerships.

The PAFEA shall maintain a small regional office to: (1) liaise with the
Department Regional Field Units (RFUs) that should serve as the principal arm of the
Department to implement extension policies and programs in the regions; (2) provide
regional technical assistance in the implementation of PAFEA policies and programs;
and (3) monitor and evaluate extension offices and programs being undertaken by
government agencies. The PAFEA is authorized to utilize existing Agricultural Training
Institute (ATI) plantilla positions but in no case shall it exceed 85% of the plantilla
positions in 2008.

ARTICLE Ill. Organization of the Local Government Extension Services

SECTION 13. Province as the LGU Unit of Operation for Agriculture & Fisheries
Extension. — To achieve efficiency and to provide more responsive services, the
administrative unit for the planning and implementation of the extension services at the
level of Local Government Units is the province through a Provincial Agriculture and
Fisheries Extension Services under the Office of the Governor. The Provincial
Agriculture and Extension Services shall be headed by a technically-qualified career
Provincial Agriculturist (PA). The PAS shall be appointed by the Director General of
PAFEA chosen from three qualified nominees submitted by the Governor. Its staff shall
be composed of technically qualified career agriculturists, economists, statisticians,
agricultural engineers, fishery technologists and veterinarians appointed by the
Provincial Governor.

SECTION 14. Extension Personnel in the Municipalities. — All municipal and non-
chartered agriculture and fisheries extension personnel are hereby transferred to the
province, and they shall be appointed by Governor and become employees of the
provincial government upon the effectivity of this Act. However, they will continue to
serve municipalities and non-chartered cities as detailed employees of the province


based on a rationalized organizational structure endorsed by the LGUs and approved
by the PAFEA and the DBM. The Municipal Agriculture and Extension Services shall be
headed by a technically-qualified career Municipal Agriculturist Officer (MAO) who shall
be appointed by the Director General of PAFEA chosen from three qualified nominees
submitted by the Governor.

SECTION 15. Salaries and Wages of Extension Personnel. — The salaries and
wages of the agriculture and fisheries technical extension personnel shall be paid by the
National Government through an annual grant-in-aid to be paid out of the regular
appropriation of the PAFEA of the Department of Agriculture; Provided, however, that
during the first year of the effectivity of this Act, the local government concerned shall
reallocate its savings from the personal services for agricultural personnel to its
agriculture and fisheries operations; Provided, further, that every year thereafter, the
concerned LGU shall appropriate the equivalent funds as the minimum amount for its
agricultural and fisheries operation or counterparts to national grants-in-aid in
agriculture and fisheries, without prejudice to the provision of additional funds that may
be allocated by the LGUs for this purpose. The salaries and wages of technical
extension personnel shall be standardized and equal to that of comparable positions of
national employees without prejudice to the provision of additional staff benefits by
concerned LGUs where finances warrant. The provision of grants in aid to pay for the
salaries and wages of the technical personnel of the LGU extension services shall be
‘subject to external review and evaluation every five years to determine its impact to the
quality of services and its cost-effectiveness. A copy of the report shall be provided to
Congress and serve as the basis for the continuation or modification of the grants-in-
aid.

SECTION 16. Professionalization of Extension Services. - The PAFEA, in
coordination with the Civil Service Commission and subject to the approval of the
CERDAF, shall develop qualification standards beyond the minimum set by the Civil
Service Commission for the various managerial, technical, and nontechnical positions of
the extension services of the country including that of all local government units. The
PAFEA shall also develop a career path of all technical extension personnel that will
allow them regardless of assignment or location in government, to move vertically in the
promotion system. Managerial positions shall be open to all qualified personnel
regardless of geographic or agency assignment. Towards this end, the PAFEA shall
issue guidelines for the creation of a merit promotion boards for each extension agency
that will include representatives of the SUCs of agriculture and fisheries.

SECTION 17. Structure of the Provincial Extension Services. - The provincial
agriculture and fisheries extension services shall organize and structure its services
based on the agricultural and extension needs of the province and on the standards set
by the PAFEA. The technical positions of the PAFEA, and the Provincial Extension
Services shall be rationalized to provide the required number of positions for
agriculturists, communication and curriculum specialists, economists, agricultural
engineers, fishery technologists and veterinarians


SECTION 18. LGU Livestock Production Services. — In recognition of the need to
provide an integrated extension approach to total farm development, the LGU livestock
production Services shall be part and parcel of the Provincial Agricultural Office (PAO).
In cases where these functions were transferred to the Provincial Veterinary Services,
they shall be returned and integrated to the rest of the PAO services.

SECTION 19. Strategic Plan in Agriculture & Fisheries. ~ To provide coherence
of all government plans in agriculture and fisheries and to achieve efficiency in the use
of resources, all provincial governments are required to develop a five-year strategic
plan in agriculture and fisheries based on the framework and principles provided by the
Department of Agriculture (DA). The Strategic Plan shall serve as the basis for the DA
to provide short-term and long term assistance. The yearly program of work and budget
shall be derived from the strategic plan

ARTICLE IV. Funding for Extension Services

SECTION 20. Initial Appropriation. — For the first year of implementation of this
Act, the amount of Five Billion Pesos (PHP 5,000,000,000.00) shall be appropriated out
of the total budget of the Department of Agriculture (DA) for personal services, grants-
in-aid to the LGUs, operation and capital outlay requirements of the Philippine
Agriculture and Fisheries Extension Agency (PAFEA).

The Department of Budget and Management (DBM) is hereby mandated to
include annually in the President's program of expenditures for submission to Congress
and release an amount not less than five billion pesos (PHP5,000,000,000.00) or one
percent of the gross value added in agriculture and fisheries, whichever is higher, for
the implementation of this Act.

The PAFEA is authorized to utilize part of its yearly appropriation to set up or
upgrade necessary facilities to improve the provision of national extension services.

All assets, resources both human and financial of Agriculture Training Institute
(ATI), shall be transferred to the PAFEA.

All revenues generated out of the use of services, facilities and equipment shall
be utilized by the Agency to augment its maintenance and operating expenditures
subject to the approval of the Governing Board.

ARTICLE IV. Final Provisions

SECTION 21. Oversight Committee. - The Congressional Oversight Committee
for Agriculture and Fisheries Modernization shall oversee the implementation of this Act
for a period not exceeding five (5) years from its effectivity.


SECTION 22. Implementing Rules and Regulations. — Within ninety (90) days
from the effectivity of this Act, the implementing rules and regulations shall be
formulated by the Department of Agriculture in coordination with the members of the
Congressional Oversight Committee on Agriculture and Fisheries Modernization. The
said rules and regulations shall be submitted by the Secretary of the Department of
Agriculture (DA) to the Committee of Agriculture of both Houses of Congress.

SECTION 23. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations, issuances or parts thereof inconsistent with this Act are hereby repealed or
amended accordingly.

SECTION 24. Separability Clause. — If any provision of this Act is declared
invalid or unconstitutional, the other provisions not affected thereby shall remain valid
and subsisting.

SECTION 25. Effecfivity Clause. — This Act shall take effect thirty (30) days from

the date of its publication in the Official Gazette or in at least in two (2) national
newspapers of general circulation

Approved,