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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
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18TH CONGRESS ‘
First Regular Session

HOUSE BILL No, _1007

Introduced by Representative Michael L. Romero

EXPLANATORY NOTE

In the Republic of the Philippines Agriculture piays a vital role in the economy.
Of the 30 million hectares of iand in the country, one-third (33%) is devoted to
agriculture while two-thirds (67%) of the populace depends on these lands for
their livelihood. Farms are primarily characterized as smallhold and are
managed and cultivated by smal! farmers.

All these smallhold farmers are important drivers of development in the
countryside but are commonly marginalized and mostly vulnerable to the rapidly
changing social, political, and environmental conditions. Hence in view of their
significant contributions in achieving economic and sustainable development
especially in the countryside, the Republic Act (R.A.) No. 7607, also known as
the “Magna Carta of Small Farmers” was signed into law on June 4, 1992.

‘The Magna Carta of Small Farmers is a creditable law aimed at improving the
lives of the small farmers by empowering them and harnessing their potentials
and abilities. The state encourages greater participation of this marginalized
sector in the government planning and program and project implemeuitation to
contribute to national economic development.

The provision of incentives in the form of infrastructure and other physical
assets, access to vital agricultural services and capacity building provide an
avenue for the small farmers to improve their performance as drivers of
development in the countryside.

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This House Bill is seeking to optimize the promised purpose of the state’s law
requiring the government's adherence to its provisions and the provision for the
necessary funding.

Earnest approval gf his bill is hereby requested.

-L L. ROMERO Ph.D.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18TH CONGRESS
First Regular Session

HOUSE BILL No, 1907

Introduced by Representative Michael L. Romero

AN ACT

AMENDING SECTION 27 OF Cr:APTER VIII OF R.A. NO.7697
OTHERWISE KNOWN AS THE "Magna Carta of Small Farmers",
INCREASING ITS PENALTIES AND ADMINISTRATIVE
SANCTIONS, AND FOR OTHER PURPOSES

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

SECTION 1. DECLARATION OF POLICY

Section 27 of Chapter VIII of Republic Act No. 7607 is hereby amended to
read:

Sec. 27. Procurement of Agricultural Produce. — The National Food
Authority (NFA) or any other appropriate agency of the Department
of Agriculture which implements the government price support for
agricultural produce, especially rice and corn, shall only procure
and purchase palay, corn or other agricultural produce directly from
small farmers or farmers’ organizations. Such agency shall devise
an effective procurement scheme to ensure that small farmers can
avail of this benefit.

Any official or employee of such agency who allows, consorts or
connives with any trader or nonfarmer in the purchase of rice, corn
or other agricultural produce or inputs subject to price support or
any other government subsidy which is intended exclusively to


benefit small farmers, shall be punished by a fine of not less than
Fifty thousand pesos (P50,000.00) or by imprisonment for a term of
not less than three (3) years but not more than five (5) years, or both
at the discretion of the court, without prejudice to administrative
sanctions imposed by the subject agency with perpetual
disqualification to hold public office. The Probation Law shall not
apply to penalties imposed under this Act.

Authentic copies of any evidence of procurement or purchase of
palay, corn and other agricultural produce enjoying price support
as provided in this section shall, within thirty (30) days from the
issuance thereof, be furnished the Bureau of Internal Revenue by
the National Food Authority or any other agency of the Government
implementing price support therefor, subject to the penalties
provided in the preceding paragraph for violation thereof.

‘The penalties provided «under this section shall likewise apply to any
official or employee of the Nationai Food Authority or to any such
similar agency of the Government who consorts or connives with uny
trader or nonfarmer in the sale of rice, corn or other agricultural
produce sold under any government program.

SECTION 2. MISCELLANEOUS PROVISIONS:

In addition, the Department of Agriculture (DA) shall impose the following
penalties, after determining, in an administrative proceeding, that violation of
this law has been committed:

a. Withdrawal of the authorization for any licensing and registration
;and

b. Blacklisting, or automatic disapproval of any pending or
subsequent applications that they may filed with the NFA-DA.

SECTION 3. REPEALING CLAUSE. All laws, executive orders, issuances,
rules and regulations inconsistent with this Act are hereby amended, repealed
or modified accordingly.


SECTION 4. SEPARABILITY CLAUSE. If, for any reason or reasons, any
portion or provision of this Act shall be held unconstitutional or invalid, the
remaining provisions not affected thereby shall continue to be in full force and
effect.

SECTION 5. EFFECTIVITY CLAUSE. This Act shall take effect fifteen (15)

days after its publication in any newspaper of general circulation.

Approved,