Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

H.B.No. 39)

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

It is estimated that as much as five million Filipinos in the rural sector are either
unemployed or underemployed. Although the employment in the rural sector is largely seasonal,
much of the unemployment and underemployment can be attributed to underutilization of
agricultural lands throughout the country.

With the Rural Employment Generation Act of 2010, one million hectares of idle and
underutilized lands will be converted into modem productive agricultural resources. In the
process, it is expected that one million rural jobs will be created, with annual farm incomes of at
least Twenty Five Thousand Pesos per hectare being generated.

Com, cassava and high value commercial crops shall be planted throughout the country
under this Act, with the Department of Agriculture serving as lead agency. Tie-ups between the
private sector and government will be necessary, including collaborations between agribusiness
companies and farmer-beneficiaries.

As catalyst, the Program will generate rural employment valued at 10.354 Billion Pesos
and private sector investments of 10.605 Billion Pesos. More importantly, with an improvement
in our country's rural employment level, it is anticipated that rural poverty will drastically be
reduced.

For the above-mentioned reasons, approval of this bill is earnestly urged

ee

JUAN Sradees “SONNY” M. ANGARA
Representative
Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

H.B.No. 391

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
TO ACCELERATE THE DEVELOPMENT OF IDLE AND UNDERUTILIZED
AGRICULTURAL LANDS AS A MEANS TO GENERATE EMPLOYMENT

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

SECTION 1. Title of Act. This Act shall be known as the “Rural Employment
Generation Act of 2010."

SEC. 2. Purpose of the Act. There is a need to accelerate the development of idle and
underutilized agricultural land throughout the country as a means of generating rural economic
activity, especially since the majority of our country’s poor population belongs to the rural sector.
In generating rural employment, it is anticipated that at least one person will find employment for
every hectare developed, with an increase in income of Twenty Five Thousand Pesos
(P25,000.00) per farmer.

SEC. 3. Lead Agency. The Department of Agriculture ("DA") shall undertake the
implementation of the Rural Employment Generation Program (the “Program”) and shall ensure
implementation of this Act and its purposes, including the determination of areas to be planted.

SEC. 4. Activities to be Undertaken. DA shall undertake the development of a total of
845,000 hectares of idle or underutilized agricultural land, to be planted hybrid corn, cassava
and high value commercial crops ("HVCC’) over a period of two years, as follows:

Yr 1 Hectares Planted Yr 2 Hectares Planted
Corn 404,000 613,000
Cassava 20,000 88,000
HVCC. 185,000 194,000

SEC. 5. Features of the Program. The Program shall have the following features:

(a) Modern Technology Systems. The Program will consolidate existing crop areas as
well as idle prime lands into farm cluster modules for mechanized and/or irrigated
production of hybrid com, cassava and HVCC;


(b) Production Credit Support. To ensure the adoption of modem crop production
technologies, the Program will enhance farmers’ access to credit for the purchase of
production inputs through innovative credit schemes through the establishment of a
seed/guarantee fund for production loans to be extended by input suppliers, end-
users, traders, service providers and the formal banking sector;

(c) Human Resource Development. The Program shall train farmers on hybrid
technologies, farm mechanization, post harvest and processing technologies and
promote local capacity-building in areas of participatory program management and
implementation, research and extension and agribusiness marketing and
management.

SEC. 6, Farmer-Agribusiness Tie-ups. The DA shall facilitate arrangements between
farmers and agribusiness groups in the development of agricultural lands. Different business
partnership modalities shall be established between farmer cooperatives and the private sector
to provide ready markets, management and technical support, in whichever form most suitable
for rural development, including but not limited to purchase orders, service or management
contracts, contract growing or processing arrangements, lease agreements and joint venture
agreements.

SEC. 7. Quality Standards and Classification Systems. Quality standards and
classification systems shall be developed by the DA and implemented for feedgrains,
vegetables, fibers, fruits and industrial crops in order to ensure better prices and
competitiveness of domestic produce.

SEC. 8. Joint Government-Private Sector Committee. A committee is hereby created,
consisting of the Secretary of Agriculture as Chairman, a representative of the private sector
involved in agriculture as Vice Chairman, two representatives of the farmer-beneficiaries, two
representatives of agribusiness companies involved in the Program, and two officials of the DA
as members, all of which shall be appointed by the President of the Republic of the Philippines
upon recommendation of the Secretary of Agriculture. The committee shall facilitate the
assistance of the private sector in the identification of farmer beneficiaries, credit channels and
market and service providers and shall oversee the administration, management and
implementation of the Program

SEC. 9. Establishment of the Agricultural Development Fund. The Agricultural
Development Fund (the “Fund”) is hereby established, in the amount of Pesos: Five Billion Five
Hundred Fifty One Million (PHPS,551,000,000.00) for the first year and Pesos: Four Billion
Seventy Eight Million (P4,078,000,000.00) in the second year of the Program. The Fund shall
be taken from the budget allocation of the DA, and will be utilized for the provision of a
seed/loan guarantee fund for the production loans and direct government intervention in the
provision of, among others, farm machinery, post harvest facilities. Farm-to-market roads and
human resource development activities.


SEC. 10. Separability Clause. If any provision of this Act shall be declared
unconstitutional or invalid, the other provisions not otherwise affected, shall remain in full force
and effect.

SEC. 11. Repealing Clause. All laws, executive orders or issuances, or any parts

thereof which are inconsistent herewith are hereby repealed or amended accordingly.

SEC, 12. Effectivity Clause. This Act shall take effect upon its publication in at least

two (2) newspapers of general circulation.

Approved,