EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S.B. No. 1902
FILED
November
¥
GILLS
MDfcX
Introduced by SENATOR IMEE R. MARCOS
AN ACT TO PROMOTE AND ENHANCE THE DOUBLING OF INCOME OF 
FARMERS, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES
EXPLANATORY NOTE
Article II, Section 9 of the 1987 Constitution provides that, " The State shall 
promote a just and dynamic social order that will ensure the prosperity and 
Independence of the nation and free the people from poverty through policies that 
provide adequate social servlces/ promote full employment, a rising standard of 
living, and an improved quality of life for all."
As of 2020, the agricultural sector continues to employ 23 to 26% of the labor 
force despite the sector's share of the GDP continuously decreasing from 13.41% in 
2010 to 9.21% in 2020. The decrease in the share of agriculture to the GDP is due to 
the lag in the agricultural sector's growth compared to the other sectors of the 
economy. From 2010 to 2019, the economy grew by an average of 6.40%. Over the 
same period, the agricultural sector grew by an average of 1.89%.
The sluggish growth experienced by the agricultural sector has resulted in 
farmers being the poorest sector in the country. Looking at the 2018 Family and 
Income Expenditure Survey, the poverty rate of the country is at 16.7%. However, 
among the basic sectors being tracked by the PSA, farmers recorded the highest 
poverty rate at 31.6%, or almost double the national average.


In 2019, the Department of Agriculture (DA) identified eight (8) "paradigm^' to 
improve the income of farmers. The paradigms identified where: (a) modernization, 
(b) industrialization, (c) farm consolidation, (d) promotion of exports, (e) road map 
development, (f) infrastructure development, (g) government spending, and (h) 
legislative support. The said paradigms aim to double the earnings of farmers and 
create prosperity on farming communities.
This measure institutionalizes the needed programs to realize the improvement 
in the income of farmers by providing the necessary legislative support for the 
programs of the DA. It provides funding for the development of the road map for the 
promotion of high value crops and their export. It also establishes the necessary 
framework for the consolidation of farmlands by promoting the establishment of 
cooperatives through benefits and the provision of organizational knowhow. Lastly, 
the measure facilitates the transition to corporate farming by providing the legal 
framework for agribusiness venture agreements (AVAs) which aims to optimize and 
improve the agricultural production and agricultural security of tenure and income.
Given the untapped potential and resilience of the agricultural sector, as shown 
by its robust performance during the current pandemic, supporting the agricultural 
sector will provide farmers the opportunity to escape the chronic poverty associated 
with the sector and allow the government to provide low-cost and resilient 
employment badly needed during this financial and economic crisis the world is 
currently facing.
The approval of this measure is earnestly sought.
IMEE R. MARCOS


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
S.B. No. 1902
Introduced by SENATOR IMEE R. MARCOS
FILED
November 9
¥
SILLS
MDBX
AN ACT TO PROMOTE AND ENHANCE THE DOUBLING OF INCOME OF 
FARMERS, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES
1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. - This Act shall be known as the "Doubling Income 
of Farmers Act".
SEC. 2. Declaration of Policy. - The State shall promote social justice and 
protect and enhance the right of people, especially local rice farmers, to human 
dignity, reduce social, economic, and political inequalities, and recognize the 
indispensable role of the agricultural sector for national growth and development. It 
is also the declared policy of the State to support local rice farmers through 
appropriate technology and research, and adequate financial, production, marketing, 
and other support services, promote cooperation between and among competing 
farmer associations and cooperatives and regulate or prohibit monopolies in the 
industry thereby contributing in the realization of a globally competitive local 
agriculture sector and the attainment of food security.
SEC. 3. Definition of Terms. - As used in this Act, the following terms shall
mean:
a) "Agribusiness Venture Arrangement (AVA)" shall refer to entrepreneurial 
collaboration between farmers and investors to implement an agribusiness 
venture;
b) "Buiid-Operate-Transfer (BOT)" shall refer to an AVA scheme wherein the 
investor builds, rehabilitates or upgrades, at his own cost, capital assets.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
infrastructure and facilities applied to the productipn, processing and marketing 
of agricultural products and operates the same at his expense for an agreed 
period, but not to exceed twenty-five (25) years, after which the ownership 
thereof is conveyed to the farmers who own the land where such improvements 
and facilities are located;
c) Cooperative' shall refer to a cooperative defined and established in RA 9520 or 
the "Philippine Cooperative Cbcte"(PCC);
d) "Equity"shd\\ refer to the value of the shares subscribed and paid for by each 
party in relation to the authorized capital stock of a joint venture corporation;
e) "Farmer Associations and Cooperative^' shall refer to organizations of farmers 
who own and/or till farmlands;
f) "Farmer Hubd' shall refer to centers established for and awarded to clusters of 
farmer associations and cooperatives, providing the means and venue for (I) 
sourcing and sharing of farming resources (machinery, equipment, loans, 
farmer training, seeds, fertilizers, pesticides, and diesel) from the government 
and private suppliers, (2) the processing (drying and milling) and storage of 
rice, (3) the manufacture of rice products, (4) the direct marketing and sale of 
rice and derivative products to retailers and consumers, and (5) other identified 
cooperative activities;
g) "Federatiorf' shall refer to a federation defined and established In the PCC but 
whose formation and attributes are as defined in this Act. Other provisions of 
the PCC not inconsistent with this Act shall apply to federations as defined 
herein;
h) "Government Farming Assistance' shall refer to machinery, equipment, seeds, 
training, subsidies, agricultural loans, and such other benefits or grants 
extended to rice farmers under existing and future programs;
i) "High Value Cropd' shall refer to crops other than rice, com, coconut and sugar, 
as defined by RA 7900 or the "High-Value Crops Development Act of 1995";
j) "Investors" shall refer to private individuals, corporations, non-government 
organizations; cooperatives/associations, government owned and/or controlled 
corporations or any entity duly authorized by law, who are willing and able to 
contribute their capital, equipment and facilities, technology, and/or 
management services in an AVA;


1
2
3
4
5
6
7
8 
9 
10 
11 
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
k) "Joint Venture Agreement (JVA)"s\\d\\ refer to an AVA scheme wherein the 
farmers and investors form a joint venture corporation (JVC) to manage farm 
operations. The beneficiaries contribute the use of the iand held individually or 
in common and the facilities and Improvements, if any. On the other hand, the 
investor furnishes capital and technology for production, processing and 
marketing of agricultural goods, or construction, rehabilitation, upgrading and 
operation of agricultural capital assets, infrastructure and facilities;
l) 
"Joint Venture Corporation (JVC)"shaW refer to a corporation formed by the 
investor and the farmer cooperative/association and is governed by the joint 
venture agreement;
m) "Lease Agreement" s\\aW refer to an AVA scheme wherein the farmers bind 
themselves to give the investor general control over the use and management 
of the land for a certain amount and definite period but not to exceed ten (10) 
years;
n) "Management Contract"sha\\ refer to an AVA scheme wherein the farmers hire 
the services of a contractor who may be an individual, partnership, or 
corporation to assist in the management and operation of the farm for the 
purpose of producing high value crops or other agricultural crops in exchange 
for a fixed wage and/or commission;
o) "Marketing Agreement" shall refer to an AVA scheme wherein the investor 
explores possible markets/buyers for the farmer's produce and in turn receives 
commission for actual sales;
p) "Production/Contract Growing"s\\aW refer to an AVA scheme wherein the 
farmers commit to produce certain crops which the investor buys at pre­
arranged terms (e.g., volume, quality standard, selling price). This may come 
in the form of production and processing agreements; and
q) "Service Contract"shaW refer to an AVA scheme wherein the farmers engage 
the services of a contractor for mechanized land preparation, cultivation, 
harvesting, processing, post-harvest operations and/or other farm activities for 
a fee.


CHAPTER II
CLUSTERING AND CONSOLIDATION
1 
SEC. 4. Clustering of Farmer Associations and Cooperatives. - Farmer
2 
associations and cooperatives shall be clustered to form federations, which shall be
3 
registered as cooperatives under R.A. No. 9520 othen/vise known as the "Philippine
4 
Cooperative Codd'. The Department of Agriculture (DA) shall determine the
5 
appropriate number of clusters based on the number and locations of farmlands
6 
owned and/or tilled by members of farmer associations and cooperatives, ensuring
7 
geographical proximity between each farmland and the Farmer Hub established under
8 
Sec. 5 of this Act.
9 
The federation shall be exempt from the following requirements under the
10 
Philippine Cooperative Code, other cooperatives laws and regulations or otherwise:
11 
1) bonding;
12 
2) registration fee;
13 
3) feasibility study; 
and
14 
4) such other requirements waived by the IRR.
15 
SEC. 5. Establishment of Farmer Hubs. - There shall be established Farmer
16 
Hubs. The Department of Agriculture shall determine the appropriate number and
17 
sites for the Farmer Hubs. Each Farmer Hub shall be managed by the federation
18 
formed under Sec. 4 of this Act. Notwithstanding the provisions of R.A. No. 9520, this
19 
Act shall provide for a simplified registration process for the federation in accordance
20 
with the provisions of this Act.
21 
SEC. 6. Powers, Capacities, and Privileges of Federation. - Federations
22 
formed under this Act shall have the following powers, capacities, and privileges:
23 
a) It shall have the powers and privileges of both a cooperative and federation
24 
under R.A. No. 9520;
25 
b) It shall be the exclusive conduit of government farming assistance;
26 
c) All sales, services, or transactions of a federation shall not be subject to any
27 
taxes and fees imposed under the internal revenue laws and other tax laws,
28 
including income taxes, VAT, percentage taxes sales, and local sales taxes;
29 
d) All real properties owned and those directly used for the operations,
30 
management, and maintenance of a federation formed under Sec. 4 shali be
31 
exempt from the payment of real property taxes imposed under existing laws;
32 
and


1 
e) It shall have such other powers, capacities, and privileges deemed necessary
2 
to promote cooperative activities within the federation and in accordance with
3 
existing laws, rules and regulations.
4 
SEC. 7. Management of the Farmer Hub. - Notwithstanding the provisions
5 
of R.A. No. 9520 and for purposes of this Act, the management and operation of the
6 
Farmer Hub shall be performed by the Management Committee formed by the
7 
federation. The Municipai Agricuiturist of each municipality where farmlands owned
8 
and/or tilled by members of clustered farmer associations and cooperatives are located
9 
shall be non-voting ex-officio members of the Management Committee. The
10 
Management Committee may enter into management contracts for the efficient
11 
management and operation of the Farmer Hub.
12 
The DA shall provide for a phased-in revenue-based operational model for the
13 
Farmer Hubs. The Farmer Hubs shall receive monthly operational funds from the DA
14 
within five (5) years from its establishment, after which it shall become self-sustaining.
CHAPTER III
AGRIBUSINESS VENTURE AGREEMENTS
15 
SEC. 8. Agribusiness Venture Agreement - The agribusiness venture
16 
arrangement shall be governed by the following policies:
17 
a) Farmers organized as cooperatives or associations may enter into an AVA
18 
provided that the Board of Directors, with the technical support of their
19 
executive officers, shall secure the vote of approval by the general
20 
membership in accordance with its articles of cooperation/association and by
21 
laws. In the absence thereof, a vote of approval of at least 2/3 of the general
22 
membership shall be secured.
23 
b) For lands that are not yet fully paid or are within the ten-year prohibition
24 
period pursuant to R.A. No. 6657 otherwise known as the "Comprehensive
25 
Agrarian Reform Law of 1988", the DAR shall be a signatory as a nominal
26 
party to the contract.
27 
c) The terms and conditions of the AVA contract shall be mutually agreed upon
28 
by the farmer/s and the investor/s. The terms and conditions of the AVA
29 
contract shall be fully known to all parties. If warranted, the parties may
30 
translate the contract into the local dialect known to the farmers.
31 
d) The duration or period of the AVA contract shall be mutually agreed by all
32 
parties taking into consideration the following: (1) crop or production cycle,
33 
(2) gestation period of the crop, (3) economic lifespan of existing major and
34 
essential facilities/infrastructure (if any), (4) payback or recoup period of


1 
investments, and (5) term of office of cooperative/association, officers, Board
2 
of Directors (if appiicabie).
3 
e) Upon the end of the AVA, the farmers or their cooperative/association shaii
4 
assume fuii control of the land.
5 
f) The landholding subject of AVA shall be used solely for agricultural purposes
6 
and the investor shall not use or allow the use of the subject landholding for
7 
illegal or prohibited purposes or for other purposes not covered under the AVA
8 
contract.
9 
g) For the duration of the contract, whenever applicable, the investor shall
10 
provide funds necessary to ensure ecological protection of both the farm and
11 
its workers, particularly for the conservation and maintenance of land quality,
12 
proper handling, storage and disposal of hazardous residues and waste
13 
products, and proper protective and acceptable safe methods of application
14 
of fertilizers and other chemicals.
15 
h) The AVA shall only adopt/apply farming technologies, methods, implements
16 
and inputs that are generally determined to be safe for the environment and
17 
which would not diminish the productive capacity and sustainability of the land
18 
and the natural resources therein.
19 
i) AVAs shall include provisions for mediation/conciliation and arbitration as a
20 
means of resolving disputes arising from the interpretation and enforcement
21 
thereof which may be undertaken by duly trained mediators or conciliators
22 
acceptable to both parties.
'23 
j) The approval of AVAs shall depend on the following considerations: (1)
24 
Economic Viability/Profitability; (2) Legal Enforceability; (3) Ecological
25 
Soundness; (4) Farmers Skills Development; and (5) Non-Transferability.
26 
SEC. 9. Specific Policies, - The different types of agribusiness partnership
27 
or arrangement shall be governed by the following specific policies:
28 
a) Joint Venture Agreement - The farmers and investors shall form a joint
29 
venture corporation (JVC) to manage farm operations. The farmers shall
30 
contribute use of the land held Individually or in common and the facilities and
31 
improvements, if any, while the investor shall furnish capital and technology
32 
for production, processing and marketing of agricultural goods, or
33 
construction, rehabilitation, upgrading and operation of agricultural capital
34 
assets, infrastructure and facilities. It shall be governed by the following
35 
policies:


1
2
3
4
5
6
7
8
9
10 
11 
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
i. 
The JVC should be duly organized and registered with the Securities 
and Exchange Commission (SEC).
ii. 
The JVC shall acquire merely usufructuary, but not ownership, rights 
over the land for an agreed period, subject to the limitations 
provided for under Art. 605 of the Civil Code, and subject, further to 
the condition that it shall preserve the form and substance thereof. 
Ownership of the land remains with the farmers and the property 
cannot be used to settle obligations of the JVC in the event of 
insolvency or bankruptcy.
iii. 
The equity shall serve as basis for determining the voting shares in 
the JVA. The equity participation of the farmers may be determined 
by both parties based on prevailing market rates or as appraised by 
a registered and accredited independent appraiser chosen by the 
parties. The equity of the farmers shall not be, in any manner, 
subject to dilution in case of additional issuance by the JVA of shares 
of the capital stock. For this purpose, additional issuance shall 
consist of non-voting shares.
iv. 
Farmers and/or their dependents shall be given preference for 
employment in the joint venture. Employed farmers shall receive 
salaries/wages for their labor in accordance with existing labor laws, 
in addition to dividends on their equity interest, to be given every 
crop year, and other income that may be due the registered owner 
for the land used under the joint venture, as the case may be.
b) Production, Contract Growing, or Marketing Contract. - In production/contract 
growing, the farmers shall commit to produce certain crops which the investor 
buys at pre-agreed terms (e.g., volume, quality standard, selling price) and 
maintain ownership of the land.
In marketing contracts, the farmers shall engage the services of an 
investor who will explore possible markets/buyers for his/her produce and 
shall be governed by the following policies:
i. In production/contract growing, the investor may provide at 
reasonable cost, the technology and other farm inputs prescribed to 
produce agricultural goods according to the quality standards set by 
the contract. Any loss resulting from arbitrary adjustments in the 
quality standards shall be borne by the investor.


1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
ii. 
If the application of the prescribed production technology results in 
the degradation of the substance and form of the land, the farmers 
shall be justified in applying alternative and equally effective 
production technology upon proper notice to the investor.
iii. 
The period for acceptance by the investor of the products delivered 
shall be stated in the contract. Acceptance is implied by the investor's 
failure to notify the farmers of its rejection of the products after the 
lapse of the agreed period.
iv. 
If production exceeds the volume of crops agreed upon in the 
contract, the farmers may dispose of the excess to other interested 
buyers, subject to the investor's right of first refusal. The proceeds 
of the sale of the excess shall accrue exclusively to the farmers.
V. The agreement shall incorporate a price review mechanism, 
including the disclosure of prices and post harvest and marketing 
cost, taking into consideration industry practice, prevailing market 
prices, and other appropriate factors.
c) Lease Agreement - The beneficiaries shall bind themselves to give the 
investor general control over the use and management of the land for a certain 
amount and for a definite period. It shall be governed by the following policies:
i. 
The lessee or investor shall provide the capital to develop, cultivate, 
plant, harvest or process the agricultural crops, extend all technical 
and management services for the efficient operation of the farm, 
and assume the risk of loss of agricultural operations. 
Notwithstanding crop failure due to natural calamities or force 
majeure/\he lessee shall ensure payment of lease rental as 
stipulated in the contract.
ii. 
The lessee/investor shall have the right to construct buildings and 
introduce other physical improvements or facilities on the property 
subject of lease, necessary for agricultural operations. In no case, 
however, shall any improvement on the property decrease the 
aggregate agricultural area to the extent of lowering the land rental 
and other privileges accruing to the farmers. All buildings, roads, 
bridges and other immovable permanent structures/improvements 
and facilities on the land constructed or developed by the investor 
during the term of the lease contract, including fruits thereon, shall 
accrue or belong to the farmers upon termination of the lease. 
Notwithstanding, all infrastructure, facilities and improvements.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
including buildings, roads, machinery, receptacles, irrigation and 
drainage system, packing plants, cables, instruments or implements, 
and the like, permanently attached to the land, and are necessary 
and beneficial to the operations of(the farm as determined by the 
DA, may be acquired at the option of the farmers, subject to the 
amount agreed upon by both parties. In case of disagreement, the 
valuation procedures of the LBP shall apply.
For non-permanent improvements on the land, the farmers 
shall have the option to buy said improvements which are beneficial 
to the land at the amount agreed upon by both parties. Otherwise, 
the lessee/investor shall have the option to remove or transfer any 
non-permanent improvement, prior to or upon 
termination/expiration of the agreement at the investor's own 
expense, and in any manner not to cause damage to the land.
iii. 
The lessee/investor shall give priority to qualified and willing farmers 
and their dependents for employment in the enterprise. In such 
case, they shall be treated as employees of the lessee/investor and 
shall be entitled to the mandated minimum wage and other 
economic benefits granted under the Labor Code and other existing 
laws.
iv. 
Contracts on lease agreements shall include a rental rate review or 
adjustment mechanism.
d) Management Contract. - The farmers shall hire the services of a contractor 
who may be an individual, partnership, or corporation to assist in the 
management and operation of the farm for the purpose of producing high 
value crops or other agricultural crops in exchange for a fixed wage and/or 
commission. It shall be governed by the following policies:
i. 
The farms shall remain under the control and possession of the 
farmers and the management contractor shall receive a fixed 
compensation, commission or other forms of remuneration for his 
services, to be stipulated in the contract.
ii. 
The management contractor shall prepare the development plan, 
cost estimates, annual budget, and manpower requirements of the 
agribusiness enterprise, subject to approval of the farmers, and 
assist in sourcing funds to finance its operations.


1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
iii. 
Employees of the management contractor shall be limited to 
managerial positions and those engaged in the introduction and 
transfer of appropriate technology. The farmers shall provide the 
labor necessary for farm operations.
iv. 
All income from the operation of the farm shall accrue exclusively to 
the farmers. Disbursements shall be made jointly by the 
management contractor and the farmers through their duly 
authorized representatives.
e) Service Contract. - The farmers shall engage the services of a contractor for 
mechanized land preparation, cultivation, harvesting, processing, post-harvest 
operations and/or other farm activities for a fee. It shall be governed by the 
following policies:
i. 
The farms shall remain under the control and possession of the 
farmers while the service contractors provide the necessary 
equipment, facilities or other services for a period of time and at 
specifications stipulated in the service contract.
ii. 
The service contractors shali receive a fixed compensation, 
commission or other forms of remuneration to be stipulated in the 
contract.
f) BuHd-Operate-Transfer. (BOT). The investor may build, rehabilitate or 
upgrade, at his own cost, capital assets, infrastructure and facilities applied to 
the production, processing and marketing of agricultural products. He/She 
shall operate the same at his/her expense for an agreed period after which 
the ownership thereof is conveyed to the farmers who own the land where 
such improvements and facilities are located. It shall be governed by the 
following policies:
i. 
The investor shall build Infrastructure or rehabilitate facilities and 
improvements necessary to make the lands productive and shall 
directly operate the same for a specified period and under the terms 
stipulated in the BOT contract.
ii. 
The facilities and improvements shall be constructed at the investor's 
own expense.
iii. 
The farmers shall receive a reasonable amount (i.e., rent or profit 
sharing arrangement) or any other equitable arrangement 
advantageous to the farmers for the use of the land while the 
investor operates the infrastructure/facilities.
lU


1 
iv. The farmers shall continue to engage in production activities on
2 
portions of the land not affected by the facilities being
3 
constructed/rehabilitated.
4 
SEC. 10. Approval of A VAs. - The DA shali act on the AVA within thirty (30)
5 
days from the completion of all the required documents and in accordance to Sec. 8.
6 
(j) of this Act. The AVA contract shall not be approved if it will result in the transfer of
7 
ownership, exemption/exclusion from CARP coverage and/or conversion of the subject
8 
landholding to non-agricultural use except those necessary for the operation of the
9 
AVA. There shall be no provision in the AVA contract stipulating the sale or transfer of
10 
land ownership from the farmers to the management contractor/lessee/investor firm
11 
during the term of the AVA or in the renewal thereof.
12 
SEC. 11. Reporting of AVA Contracts. - The DA shall maintain a database
13 
of all AVA Applications and approved AVA Contracts. The DA shall submit an annual
14 
report to Congress on the status of all AVA contracts approved and operational.
CHAPTER IV
CROP DIVERSIFICATION AND EXPORT PROMOTION
15 
SEC. 12. Benefits for Crop Diversification. - Farmers who shall shift from
16 
planting traditional crops to high value crops or shall practice intercropping with high
17 
value crops shall be entitled to the following benefits:
18 
a) Free crop insurance under the Philippine Crop Insurance System (PCIC);
19 
b) Interest-free loans from the Land Bank of the Philippines (LBP) with
20 
corresponding terms and conditions, as may be determined by the LBP; and
21 
c) Moratorium on the payment of land acquisition loans under RA 6657 or the
22 
" Comprehensive Agrarian Reform Law of1988' of at least five (5) years, with
23 
the moratorium to be determined by the gestation period of the crops.
24 
Provided, that the abovementioned benefits shall only be granted if the farmer
25 
cultivated high value crops on that particular year, as inspected and determined by
26 
the Municipal Agricultural Officer (MAO). Provided further that, such benefits may be
27 
taken away if the cultivation of such high value crops is discontinued.
28 
The Department of Agriculture, in coordination with the Department of Trade and
29 
Industry and the Department of Foreign Affairs, shall link up agribusiness cooperatives
30 
directly with consumers, processing companies, exporters, and foreign buyers to
31 
provide market access.
32 
The Department of Agriculture shall provide free seeds and planting materials to
33 
farmers with landholdings under one (1) hectare.
II


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
SEC. 13. Establishment of Agricultural Export Promotion Council 
(AEPC). - A council, composed of the Secretary of the Department of Agriculture as 
the Chairperson, the Secretary of the Department of Foreign Affairs, and the Secretary 
of the Department of Trade and Industry shall be created immediately upon the 
effectivity of this Act to ensure the promotion, support, and assistance to agricultural 
exporters. The Bureau of Plant Industry, through the office which implements the High 
Value Crops Development Program, shall be designated as the Secretariat.
SEC. 14. Functions of the AEPC. - The AEPC, in consultation with the 
Department of Environment and Natural Resources, Department of Science and 
Technology, crop growers' cooperatives and organizations, local government units, 
and the private sector, shall formulate a one-year framework to be validated and 
updated annually. Such Framework shall serve as guide to the formulation and 
implementation of plans, programs and projects for the production, marketing, 
processing and distribution of high-value crops for food and commercial needs, as 
envisioned in this Act. The Framework shall likewise provide for the following:
a) National Framework - The DA, DOST, state universities and colleges (SUCs) 
and other stakeholders shall strengthen the conduct of researches on high 
value crops particularly on areas of crop improvement (deveiopment of new 
varieties), crop protection, harvesting and postharvest handling, suppiy chain 
analysis, marketing and promotion. A techno-demo site shall also be 
established in different high value crop growing areas of the country to 
showcase the matured technologies on propagation, production. Integrated 
Pest Management (IPM), post-harvest handiing, and processing.
b) Investment Promotion and Fadiitation - The DA and DTI shali develop 
programs establishing links between stakeholders in the high value crops 
industry and Government Financial Institutions (GFIs) and other financial 
cooperatives. The DA and DTI shali likewise develop and implement programs 
that would establish reasonabie and innovative investment benefits to attract 
more players in the high value crop industry.
c) Export Promotion Support. - An integrated and strategic export promotion 
program for high value crops industry shall be created. The export promotion 
program shall be responsive to market conditions, needs of the exporters, and 
possibilities offered by new products and technologies. It shali likewise provide 
foreign trade and export promotion activities through trainings, technical 
assistance, capacity buiiding, generating awareness on export opportunities, 
and export planning assistance.
d) Strengthen Trade Policies and Support Network. — The AEPC shali be 
responsible in coordinating a consultative approach for the various stages of
12


1 
the trade policy making process. The Department of Foreign Affairs shall lead
2 
the negotiation of Free Trade Agreements to provide a competitive
3 
environment for pineapple exports abroad.
4 
e) Monitoring and Evaluation. - The AEPC shall continuously monitor, track, and
5 
analyze the progress and outcomes of the programs to be Implemented to
6 
determine over-all effectiveness.
CHAPTER VI 
FINAL PROVISIONS
7 
SEC. 15. Appropriations. - To provide for the funding requirements of this
8 
Act, there is hereby created an Agriculture Development Fund (ADF), with an initial
9 
amount of five hundred million pesos (P500,000,000.00) to be taken from the existing
10 
budget of the Department of Agriculture. Thereafter, the ADF shall be sourced from
11 
the amounts be appropriated in the General Appropriations Act in the year following
12 
its enactment into law. Other sources of funds, including but not limited to borrowings
13 
from local and international financial institutions, shall also be considered to further
14 
support the Fund. In addition, one (1) percent of the revenue from the high value
15 
crop export (as levy) shall be allocated to research and development to address the
16 
priority problems of the industry.
17 
SEC. 16. Separability Clause. - If, for any reason or reasons, any part or
18 
provision of this Act shall be declared as unconstitutional or invalid, the other parts or
19 
provisions hereof which are not affected thereby shall continue to be in full force and
20 
effect.
21 
SEC. 17. Repealing Clause. - All provisions of existing laws, orders, rules and
22 
regulations or parts thereof which are in conflict or inconsistent with the provisions of
23 
this Act are hereby repealed, amended or modified accordingly.
24 
SEC. 18. Effectivity. - This Act shall take effect immediately upon its
25 
publication in the Official Gazette or in a newspaper of general circulation in the
26 
Philippines.
Approved,
13