EPRE:
Republic of the Philippines  *

HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

HOUSE BILL NO. 5663

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
APPROPRIATING THE SUM OF EIGHT BILLION
FOUR HUNDRED MILLION PESOS (P 8,400,000,000.00)
AS SUPPLEMENTAL APPROPRIATIONS FOR FY 2019,
AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Congress is deeply concerned with the loss of farmers’ incomes due to plummeting palay
prices. While the entry of a record volume of rice imports is a major cause of the decline in the
buying price of palay, the high cost of palay production is very much a contributor to this income
loss too. This high cost of production is due to a lot of factors among which are:

* overdue farm modernization

© high cost of inputs

* lack of post-harvest facilities especially drying facilities

* lack of access to affordable credit

‘* lack of farmers’ training especially in coping with climate change

The Rice Tariffication Law is designed to utilize revenues derived from tariffs on rice
imports to fund programs that will modemize rice farming and address other factors that make
palay farming costly. However, these programs have gestation periods that go beyond a single
croppliig’ season. Meantime, we face the possibility of farmers moving out of rice farming.

This proposed measure puts together an emergency fund of P8.4 billion in the form of
conditional cash transfers, distributing P7,000 each to affected palay farmers. Farmers must
belong to a cooperative which will hopefully step up and take advantage of the scale economies
for farm equipment and other production subsidies that will be distributed from the RCEF, product,
aggregation for marketing, and contest the market against existing rice cartels. Priority must be
given in areas where palay prices have gone down way below P17/kilo, rice cultivated land size
of two hectares and below and in major rice producing provinces ‘The enlisting of rice farmers can
also be used as an opportunity to quickly update the Registry System for Basic Sectors in
Agriculture (RSBSA) for a more effective targeting of the Department of Agriculture’s programs
and interventions.

Passing this bill is most urgent. But admittedly, this short-term intervention will all come
to naught if we fail to unite and support our rice farmers, help them increase their productivity and


competitiveness and take our national and local agriculture officials to task in implementing our
food security programs.

In light of the foregoing, the passage of this bill is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

5669
HOUSE BILL NO.

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
APPROPRIATING THE SUM OF EIGHT BILLION
FOUR HUNDRED MILLION PESOS (P 8,400,000,000.00)
AS SUPPLEMENTAL APPROPRIATIONS FOR FY 2019,
AND FOR OTHER PURPOSES

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

SECTION I. Appropriations. — The sum of Eight Billion Four Hundred Million Pesos
(P8,400,000,000.00) is hereby appropriated out of any funds in the National Treasury of the
Philippines not otherwise appropriated, as supplemental appropriations for the FY 2019 Budget.

SEC. 2. Conditional Cash Transfers to Rice Farmers. —The amount appropriated herein
shall be used to compensate rice farmers at Seven Thousand Pesos (P7,000.00) each for their
loss due to the fall in palay prices at the farmgate. The fund distribution shall be guided by the
following inclusive parameters:

(a) areas where palay prices have plunged below P17/kilo at the farmgate;

(b) areas where palay farmers cultivate lands two hectares and below, and

(c) major rice producing provinces

Provided, they commit to organize themselves into cooperatives that will continue to
engage in building rice farming enterprises

‘The Department of Agriculture shall monitor compliance to this conditionality

SEC. 3. Use and Release of Funds. ~ The amount appropriated shall be released by the
Department of Budget and Management to the Department of Social Welfare and Development
(DSWD) in accordance with budgeting, accounting and auditing laws, rules and regulations.
The DSWD, in coordination of the Department of Agriculture, shall issue the guidelines
necessary for the proper implementation of the cash transfer program for the benefit of small
rice farmers,


SEC. 4. Applicability of General and Special Provisions in the FY 2019 General
Appropriations Act. ~ The amount herein appropriated shall be used for the purpose indicated
and subject to the relevant special and general provisions under Republic Act No. 11260 or the
FY 2019 General Appropriations Act (GAA).

SEC. 5. Availability of Appropriations. — The appropriations authorized in this Act shall
be available for release and obligation for the purpose specified from the date of the effectivity
of this Act until fully spent.

SEC. 6. Transparency Provisions, ~The DSWD shall ensure that the details of the fund
distribution are included as part of the information posted on their transparency seals.

SEC. 7. Separability Clause. — If for any reason or reasons, any part or provision of
this Act shall be declared as unconstitutional or invalid, the other parts of provisions hereof
which are not affected thereby shall continue to be in full force and effect.

SEC. 8. Effectivity. ~ This Act shall take effect immediately upon its publication,

Approved.