‘JF REPRESENTATIVES

SEVENTEENTH CONGRESS OF THE ) RECEIVED
REPUBLIC OF THE PHILIPPINES ) 26 JUL 2016
First Regular Session )

HOUSE OF REPRESENTATIVES

H.No, 1943

Introduced by Representative VILMA SANT
6" District of Batangas

AN ACT.
PROVIDING FOR FULL IRRIGATION SERVICE SUBSIDY FOR QUALIFIED FARMERS AND
APPROPRIATING FUNDS FOR THE CONTINUED OPERATIONS OF THE NATIONAL
IRRIGATION ADMINISTRATION

Explanatory Note

The cost of food production is steadily increasing. The total cost of rice production per
hectare increased by 16.13% from 2009 to 2012". Such increase in cost of agricultural inputs can
further erode the financial standing of farmers, putting them in a weak position against natural
hazards like typhoons, droughts, and pestilence. On a national scale, such vulnerability in the
agricultural sector could adversely affect food security in the country.

One way to mitigate the financial vulnerability of small farmers is to subsidize the irrigation
service fee (ISF) collected from them. By virtue of Republic Act No. 3601 and Presidential Decree
No. 552, the National Irrigation Administration (NIA) is authorized to collect fees from users of the
national irrigation system for water delivery services. Such fees are imposed to cover the operation
and management of irrigation facilities and to recover the monies invested therein by the
government.

Annually, an average Filipino farmer has to pay about a thousand pesos for ISF for two
planting seasons. ISF, however, can cost more depending on the existing system’s development
scheme, planting season and type of crops planted”, In 2015, NIA collected about P1.67 billion in
ISF net of losses from discounts and palay sale, This amount comprises 66.33% of the total
operating income collected by the agency in 2015. Such amount, however, is miniscule compared to
the P28.75 billion budgetary support appropriated for the irrigation agency to augment the agency's
corporate income and to cover the cost of implementation of irrigation projects, among others.

This measure seeks to reduce the impact of increasing cost of agricultural inputs and to
reduce the cash expenses of farmers with small landholdings by providing for full irrigation subsidy
for qualified farmers. To ensure the continued operation of the NIA, the bill provides that funding
requirement shall be sourced from any funds in the National Treasury not otherwise appropriated.

By subsidizing the cost of irrigation, small farmers and farm workers are afforded with
resources for other agricultural inputs that can further inerease their productivity. This bill seeks to
assist farmers and farmworkers who suffer hunger in spite of the increasing demand for the
commodity they produce. Such assistance is only fitting to those who toiles
table.

In view of the foregoing, immediate pas:

ge of this bill

VILMA SANTOS-RECTO

* Philippine Statistical Authority. (2012), Palay: Updated Average Production Costs and Returns. Quezon City: Philippine Statistical
‘Authority.
F rates for Bonga Pump Irrigation System, for example, can cost as much as 12 cavans per hectare during dry’ season,



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SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )
HOUSE OF REPRESENTATIVES

H. No. 1938

Introduced by Representative VILMA SANTOS-RECTO
6" District of Batangas

AN ACT
PROVIDING FOR FULL IRRIGATION SERVICE SUBSIDY FOR QUALIFIED
FARMERS AND APPROPRIATING FUNDS FOR THE CONTINUED OPERATIONS OF
THE NATIONAL IRRIGATION ADMINISTRATION

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

SECTION 1. Short Title. — This Act shall be known as the “Free Irrigation Service Act of
2016."

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to empower
farmers through the provision of basic and support services and infrastructure. The State therefore,

in line with its coi

stitutionally-mandated policy to promote comprehensive rural development, shall
provide adequate irrigation services at no cost to qualified farmers and small landowners.

SEc. 3. Eligibility to Full Irrigation Service Fee Subsidy. — All Filipino farmers whose

farms or holdings cover an area not greater than five (5) hectares shall be exempt from paying
irrigation service fees.

SEC. 4, Report to Congress. ~ The Department of Agriculture (DA), in coordination with the
National Irrigation Administration (NIA), shall submit to Congress, either in printed form or by way
of electronic document, an annual report on the status of the implementation of this Act. The
Secretary of Agriculture and the Agency’s web administrator or equivalent shall be responsible for
ensuring that said reports are posted on the Agency’s official website.

SEC. 5. Appropriations for the Continued Operation of NIA. ~ The funding requirement for
the continued operation of NIA shall be initially sourced from existing appropriations of NIA and
any funds in the National Treasury not otherwise appropriated. Thereafter, the amount necessary for
the continued operation and management of national irrigation services shall be included in the
annual General Appropriations Act.

SEC. 6. Implementing Rules and Regulations. ~ Within sixty (60) days from the effectivity of
this Act, the DA shall, in coordination with NIA and after consultation with directly affected
stakeholders, promulgate the necessary rules and regulations to effectively implement the

provisions of this Act.

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SEC. 7. Separability Clause. — If for any reason, any provision of this Act is declared
unconstitutional or invalid, such parts or portions not affected thereby shall remain in full force and
effect.

SEC. 8. Repealing Clause. ~ All laws, executive orders, presidential decrees, issuances, rules
and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SEC. 9. Effectivity. — This Act shall take effect fifteen (15) days following its publication in
at least two (2) newspapers of general circulation or in the Official Gazette.

Approved,

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