Republic of the Philippines
House of Representatives 31 JUL 2013
Quezon City
SIXTEENTH CONGRESS.

First Regular Session

House Bill No. __ 2170

Introduced by Hon. Mark Llandro L. Mendoza

EXPLANATORY NOTE

The bill seeks to support the local agriculture and enhance food security in
the Philippines by mandating the Local Government Units (LGUs) to earmark
ten percent (10%) of their Internal Revenue Allotment (IRA) for agriculture and
food security programs.

‘The Philippines is still primarily an agriculture country with most of its
citizens still living in rural areas and solely dependent on agriculture as their
means of livelihood. The country’s agriculture sector employs 39.8 percent of the
labor force and represents twenty percent (20%) of the Growth Domestic Product
(GDP). However, in recent years, the share of agriculture in the total gross
domestic product has declined as the country has switched from being a net
exporter to a net importer of agricultural products and food items.

Food production is the key to sustainable development. One of the
reasons for the failure of the Philippines to sustain its growth is the lack of
investment and support in agriculture and food production.

A factor affecting agricultural productivity in the country is the varying
degrees of participation from the local government units to which the
implementation and control of agricultural programs at the local level has been
devolved with the passage of Republic Act No. 7160, otherwise known as the
“Local Government Code of 1991”.

While the national government through the Department of Agriculture,
adopts strategies to improve agricultural productivity, it could not effectively
implement such strategies since the personnel, power and resources are
managed and controlled by local executive officials at the provincial and


municipal levels. As such, the extent of assistance and quality of services will
depend on the performance and action taken by the concerned LGU.

It is therefore imperative to define, establish and strengthen the
indispensable role and functions of the local government units in advancing and
supporting agricultural and food productivity in the local level. Their active
involvement and participation are vital for the effective implementation of the
national policies and programs in agriculture and food production and should be
sought to spur growth an ensure food security, self-sufficiency and sustainable
development of our country.

In view of the foregoing, approval of this bill is urgently recommended.

YP



Republic of the Philippines
House of Representatives
Quezon City

SIXTEENTH CONGRESS
First Regular Session

2170

House Bill No.

AN ACT
MANDATING ALL LOCAL GOVERNMENT UNITS TO EARMARK TEN
PERCENT (10%) OF THER RESPECTIVE INTERNAL REVENUE
ALLOTMENT (IRA) FOR AGRICULTURE AND FOOD SECURITY
PROGRAMS, PROJECTS AND ACTIV! FOR A PERIOD OF TEN (10)
YEARS,

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

SECTION 1. Short Title. - This Act shall be known as the “Local
Agricultural Production Initiative.” .

SECTION 2. Declaration of Policy. - It is hereby declared the policy of
the State to support and enhance the country’s agricultural capability and
resources to increase food production for sustainable development.

The State also recognized the vital role of local government units in the
implementation of agricultural programs, projects and activities to advance food
production and ensure food security. In relation thereto, the State, through the
local government units, shall propagate and implement the essential support
programs to further develop agricultural resources, improve credit financing
available to small farmers as well as augment the necessary agricultural
infrastructures to boost food and security.

SECTION 3. Local Agriculture and Food Security Fund, - For a period of
ten (10) years upon approval of this Act, every province, city and municipality
shall appropriate at least ten percent (10%) of their Internal Revenue Allotment
(IRA) for agriculture and food security programs, projects and activities. This
allocation shall be known as the “Local Agriculture and Food Security Fund”,


The local chief executive shall, in accordance with the concerned
sangguniang panlalawigan, sangguniang, panlungsod or sangguniang bayan,
manage and administer the Local Agriculture and Food Security Fund,

SECTION 4. Purpose. - The Local Agriculture and Food Security Fund
shall be exclusively used to finance the agriculture and food security programs of
each province, city and municipality and shall be utilized primarily for the
following:

a) Establishment of agricultural food depot and distribution centers
where the farmers can trade their cops and other agriculture
products directly to the consumers on retail or wholesale basis;

b) Subsidy for agricultural inputs like seed, fertilizers and pesticides;

° Construction, repair, and maintenance of local irrigation system
and agricultural infrastructures;

d) Construction and maintenance of post harvest facilities, proces
plants and warehouse;

°) Loans and financing for farmers;

ny Acquisition of equipment such as treshers, dryers, milling
equipment; and

a) Research development and information dissemination.

SECTION 5. Penalties - Any person who will misappropriate the Local
Agriculture and Food Production Fund shall, upon conviction, be punished with
a fine of not less than Ten Thousand Pesos (P10,000.00) but not more than Fifty
‘Thousand Pesos (P50,000.00) or imprisonment of not less than one (1) month or
both such fine and imprisonment at the discretion of the court.

If the offender is a public officer, he shall, in addition, be dismissed from
the service and disqualified for election to any public office.

SECTION 6. Implementing Rules and Regulations. - Within sixty (60)
days after the effectivity of this Act, the Secretary of Interior and Local
Government shall, in coordination with the Secretary of Agriculture, issue such
rules and regulations necessary for the effective implementation of this Act.


SECTION 7. Annual Review. - The Department of Agriculture shall
conduct an annual review of the local agriculture and food production system
and shall submit annual recommendations and reports to both Houses of
Congress.

SECTION 8. Separability Clause. - If any of the provision or part of this
Act is declared invalid or unconstitutional, the remaining parts or provisions not
affected shall remain in full force and effect.

SECTION 9. Repealing Clause. - Alll laws, decrees, executive orders,
proclamations, rules and regulations, and issuances, or parts thereof, which are
inconsistent with the provisions of this Act are hereby repealed or amended
accordingly.

SECTION 10. Effectivity. - This Act shall take effect fifteen (15) days after
publication in the Official Gazette or in two (2) national newspapers of general
circulation.

Approved,