• 
FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S. No. 2478 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
EXPLANATORY NOTE 
The Philippines with its rich natural resources can solve food insecurity and 
poverty. However, we do not fully realize the potential of agriculture. We cannot satisfy 
domestic demand even for rice, our staple food. Neither generating enough jobs nor 
contributing greatly to government revenue, our agriculture accounts for only 14% of our 
Gross Domestic Product (Food and Agriculture Organization). 
Average annual rice production at 8.99 million metric tons (mmt) cannot meet 
ave. annual demand at 9.13 mmt (Bureau of Agricultural Statistics, 2007). Annual deficit 
of staple food is widening since production grows only 3.58% while consumption rises 
4.59% (Philippine Rice Research Institute). Hence, food imports that eat into our foreign 
currency reserves continue to soar. Last year, our top four agricultural imports were: 
rice (1.76 mmt at US$1.04 Billion); wheat & meslin (3 mmt at US$816 Million); soya 
bean oil cake/meal (1.3 mmt at US$422 M); and milk & cream products (256,000 mt at 
US$385 M). 
The Department of Agriculture (DA) reported low production due to many factors 
including the EI Nino phenomenon last year. Crop production dropped 6.15% while 
livestock and poultry sub-sectors rose only minimally. In the first quarter of 2010, 
agriculture contracted by 2.84% and farm gate prices rose 5.72%. The National 
Statistics Coordination Board (NSCB) noted consumer price index (CPI) for food in 
January-February 2010 at 164.6 up from ave. CPI in 2009 of 160 and ave. wholesale 
price index for food at 174.1 (1998=100). However, increasing farm gate prices do not 
always mean better earnings nor better access to food even by rural households. 
Agriculture and fisheries fail to benefit rural households even as half of total 
population and 69.7% of Filipinos in the productive ages 15-64 years live in rural areas. 
Forty-four percent of farmers and 49.9% of fishermen are poor. They earn incomes 
below the Annual Per Capita Poverty Thresholds, as follows: P14,906 average 
nationwide; P17,035 in urban areas; and P14,123 in rural areas (NSCB, 2009). Or, 
P40.84 a day or US$0.9016 nationwide at P45.30/US$ exchange rate. They fall into the 
category of extreme poverty that experts assert is present only in developing countries: 
living on less than $1 to $1 a day is extreme poverty; $1-2 a day is moderate poverty 
(World Bank). 
Furthermore, weak agriculture prevents us from achieving the United Nations 
Millennium Development Goals to eradicate extreme poverty and cut by half the number 
of hungry people by year 2015. It warned: "Children in rural areas are nearly twice as 
likely to be underweight as those in urban areas." Rural children live where food is 
produced, yet eat less. Nationwide, six of 10 households skip more than two meals a 
day and 55% did not eat the whole day at all (Food and Nutrition Research Institute). 


Weak agriculture and fisheries affect consumers, producers and government 
alike. Consumers pay high prices while producers face low productivity, high wastage 
and low income. It also encourages smuggling that exacerbates the problem. 
Mechanization of agriculture and fisheries will eliminate these deficiencies and 
lead to economic growth. It will raise production and incomes by improving land and 
labor efficiency as follows: 1) increase in cropping intensity; 2) better plant growth due 
to better cultivation or bigger yield per unit area; 3) reduction of post harvest losses e.g., 
10-37% for rice and 30% for corn; 4) competitive pricing with product value-added 
through agro-processing; and 5) diversified farms and farm products e.g., intercropping 
2.1 million has. of idle and underutilized coconut lands. 
Unfortunately, we have the lowest mechanization level in Asia: 0.52 horsepower 
per hectare (hp/ha). On rice, Japan produces 6.7 tons/ha. with high mechanization level 
of 7 hp/ha while China produces 5.36 tons/ha. with 3.88 hp/ha mechanization level. The 
Philippines produces only 2.64 tons/ha. with a low mechanization level of 0.56 hp/ha. 
The DA and the Congressional OverSight Committee on Agricultural and 
Fisheries Modernization concluded that the dismal situation of mechanization is caused 
by inadequate and fragmented support services and promotion program, proliferation of 
substandard machineries and limited farmers' access to appropriate and affordable farm 
machinery and equipment. 
They proposed the adoption of an Agriculture and Fisheries Mechanization 
(AFMech) Law to address these issues and which shall seek the following: 
a) 
fix the implementing structure within the DA and Local Government Units and its 
inter-agency collaboration so that farm mechanization support services shall be 
effectively and efficiently delivered down to the barangay level; 
b) 
strengthen machinery testing and evaluation, standards development and 
enforcement and monitoring through accreditation and registration system to 
ensure the provision of high-~uality machinery and equipment; and 
c) 
strengthen local manufacturing to reduce investment costs and establish agri-
fishery machinery service centers in key production areas for custom plowing, 
harrowing, harvesting, drying, milling and other services which may be owned 
and operated by registered farmers cooperatives and associations. 
The proposed AFMech Law will effect a period marked by agro-industrialization 
in the countryside and migration from urban to rural areas. With rising farm production 
and income, the emergence of agro-processing and machinery manufacturing, repair 
and maintenance enterprises, our agricultural sectors will create more livelihood and 
employment opportunities. In view of the foregoing, a law must be passed to 
consolidate, integrate and strengthen all existing policies and programs towards 
agriculture and fisheries mechanization. 
The immediate passage of this Bill, is therefore, respectfully sought. 
~­
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j., 
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~1JJ MIGUEL F. ZUBIRI 


FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S. No.2A..78 
INTRODUCED BY SENATOR JUAN MIGUEL F. ZUBIRI 
AN ACT 
PROMOTING THE AGRICULTURAL AND FISHERIES MECHANIZATION 
DEVELOPMENT IN THE COUNTRY 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Title. - This Act shall be known as the Agricultural and Fisheries 
2 
Mechanization (AFMech) Law. 
3 
ARTICLE I 
4 
DECLARATION OF POLICY, 
5 
DEFINITION OF TERMS AND COVERAGE 
6 
SECTION 2. Declaration of Policy. - It shall be the policy of the State to: 
7 
a) promote the development and adoption of modern, appropriate and cost effective 
8 
and environmentally safe agricultural and fisheries machinery and equipment to 
9 
enhance farm productivity and efficiency in order to achieve food security and 
10 
safety and farmers income; 
11 
b) provide a conducive environment to the local assembling and manufacturing of 
12 
engines, machinery and equipment for agricultural and fisheries production, 
13 
processing and marketing; 
14 
c) ensure the quality and safety of machineries and equipment locally manufactured 
15 
or imported 
by strengthening 
regulation through the development and 
16 
enforcement of machinery and machine performance standards, regular testing 
17 
and evaluation, registration and the accreditation and classification of suppliers, 


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assemblers and manufacturers to ensure compliance to prescribed quality 
standards; 
d) strengthen support services like credit facilities, research, training and extension 
programs, rural infrastructures, post harvest facilities and marketing services; 
e) unify, rationalize and strengthen the implementation, coordination activities and 
mechanisms on agricultural and fisheries mechanization programs and projects; 
and 
e) deliver integrated support services to farmers, fisherfolk and other stakeholders, 
and assist them to be able to viably operate and manage their agricultural and 
fisheries mechanization projects. 
SECTION 3. Definition of Terms. -
a. Agricultural and Fisheries Machinery - refers to machinery and equipment for the 
production, harvesting, processing, storage, manufacture, preserving, transporting 
and distribution of agricultural and fisheries products. It includes but is not limited 
to tractors and their attachments, power tillers, seeders, transplanters, windmills, 
harvesting machines, crop protection and maintenance equipment, irrigation 
equipment and accessories, greenhouses and other thermal conditioning 
equipment, livestock equipment, fishery equipment, slaughtering equipment, 
meat/fishery and crop processing equipment, post harvest machines such as 
• 
milling machines, dryers, threshers, grain and other strippers, agricultural 
transport machinery and storage facilities including cold storage, reefer vans, 
slaughter houses and fishing boats of three (3) gross tons or less. New 
agricultural and fishery machinery includes newly imported as well as one that 
has not been used since its date of manufacture; 
b. Agricultural and Fisheries Mechanization -
is the development, adoption, 
assembly, manufacture and application of appropriate, location-specific and cost-
effective agricultural and fisheries machinery using human, animal, mechanical, 
electrical, renewable and other nonconventional sources of energy for agricultural 
production and postharvest/postproduction operations consistent with agronomic 
conditions and for efficient and economic farm and fishery management towards 
modernization of agriculture and fisheries; 
c. Ago-Industrial Processing - shall include local activity or series of activities to 
maintain or raise the quality or change the form or characteristics of agricultural, 
fisheries and forestry products. It also includes but is not limited to cleaning, 
sorting, grading, mixing, milling, canning, dressing, slaughtering, freezing, 
pasteurizing, conditioning, packaging, repacking and transporting of said 
products; 


1 
d. Fishing Boat - any boat, ship or other watercraft of three (3) gross tons or less, 
2 
equipped to be used for taking of fishery species or aiding or assisting one (1) or 
3 
more vessels in the performance of any activity relating to fishing, including but 
4 
not limited to, preservation, supply, storage, refrigeration, transportation and! or 
5 
processing; 
6 
e. Program - refers to the National Agri-Fishery Mechanization Program; 
7 
f. 
Department - refers to the Department of Agriculture; 
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g. Secretary - refers to the Secretary of Agriculture; 
9 
h. DOLE -refers to the Department of Labor and Employment; 
10 
i. 
DOST - refers to the Department of Science and Technology; 
11 
j. 
DTI- refers to Department of Trade and Industry; 
12 
k. 
AMTEC- refers to the Agricultural Machinery Testing and Evaluation Center in the 
13 
University of the Philippines Los Banos; 
14 
I. BAFPS - refers to the Bureau of Agriculture and Fisheries Products Standards. 
15 
m. BAR - refers to the Bureau of Agricultural Research, Department of Agriculture; 
16 
n. PhilMech- refers to the Philippine Center for Post Harvest Development and 
17 
Mechanization; 
18 
o. NAFC- refers to the National Agricultural and Fishery Council; 
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p. TESDA- refers to the Technical Education and Skills Development Authority; 
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q. CHED- refers to the CommiSSion on Higher Education; 
21 
r. 
BoAE- refers to the Board of Agricultural Engineering of the Professional 
22 
Regulation Commission; 
23 
s) UPLB- refers to the University of the Philippines Los Banos. 
24 
SECTION 4. Scope and Application. - The provisions of this Act shall apply 
25 
to the research, development and extension, promotion, distribution, supply, 
26 
assembling, manufacturing, regulation, use, operation, 
maintenance and project 
27 
implementation of agricultural and fisheries machinery and equipment. 
28 
ARTICLE II 
29 
THE NATIONAL AGRI·FISHERY MECHANIZATION PROGRAM 
30 
SECTION 5. The National Agri·Fishery Mechanization Program. - There 
• 
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shall be formulated a National Agri-Fishery Mechanization Program by the 
32 
Department with the following objectives: 
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a) promote and support through the provision of research grants, credit, transparent 
34 
and predictable regulation the local development and manufacture of agricultural 
35 
and fisheries machinery by the private sector; 
36 
b) unify, lead and support the efforts of various institutions in the research, design 
37 
and development of agricultural and fisheries machinery; 


1 
c) establish quality, safety and performance standards for agricultural and fisheries 
2 
machinery; 
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d) support the establishment of quality, safety and performance testing centers for 
4 
the certification of agricultural and fisheries machinery in strategic localities in the 
5 
country; 
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e) establish guidelines for the registration of ownership of agricultural and fisheries 
7 
machinery; and 
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f) promote the adoption of certified agricultural and fisheries machinery for 
9 
improving agriculture and fishery productivity. 
10 
SECTION 6. Program implementation. - The over-all implementation of the 
11 
National Agri-Fishery Mechanization Program shall 
be coordinated by the 
12 
Department through the Undersecretary to be designated by the Secretary who 
13 
shall : 
14 
1) conduct the formulation and review of 5-year National Agri-Fishery Mechanization 
15 
Program for the Department; 
16 
2) provide leadership in the formulation of guidelines for the registration of ownership 
17 
of agricultural and fisheries machinery; 
18 
3) ensure the formulation of quality, safety and performance standards for 
19 
agricultural and fisheries machinery; 
20 
4) ensure the formulation of accreditation guidelines for testing centers for 
21 
agricultural and fisheries machinery; 
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5) formulate and enforce guidelines for the credit program to include but not limited 
23 
to access, disbursement and repayment; 
24 
6) oversee the implementation of the National Agri-Fishery Mechanization Program 
25 
by the various units of the Department; and 
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7) coordinate with other government agencies and LGUs in the implementation of 
27 
measures provided for in this Act. 
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ARTICLE III 
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RESEARCH, EXTENSION AND HUMAN RESOURCE DEVELOPMENT 
30 
SECTION 7. Unified National R&D and Extension Agenda. - A unified 
31 
National Agricultural and Fisheries Mechanization R&D and Extension (RDE) Agenda 
32 
shall be formulated and implemented by the Department; Provided that the 
33 
Department through the 
PHilMech as focal agency, shall integrate and unify all 
34 
agricultural and fisheries mechanization R&D and extension programs and projects of 
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all concerned national government agencies, local government units, state colleges 
36 
and universities which shall be geared towards development of machineries and 
37 
equipment, job generation, address market and industry demands and help 
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accelerate agricultural and fisheries modernization in the countryside. 


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The National Agricultural and Fisheries Mechanization ROE Agenda shall include but 
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not be limited to the following: 
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1) development, pilot-testing and commercialization of appropriate, location-specific 
4 
and cost-effective agricultural and fisheries machinery and equipment in support 
5 
to contiguous farming and machinery pooling; 
6 
2) design and testing of new machineries and equipment for agriculture and fisheries; 
7 
3) local manufacture and assembly of agricultural engines and equipment; 
8 
4) development and utilization of renewable and non-conventional energy resources 
9 
such as wind, biomass, hydro, solar and bio-fuels for agricultural and fisheries 
10 
equipment and machineries; 
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5) development of efficient production and postproduction mechanization systems; 
12 
6) continuous development of technical standards and testing procedures for quality 
13 
agricultural machinery and components; 
14 
7) 
training of farmers, fisherfolk, manufacturers, extension workers, agricultural 
15 
engineers, technicians and operators engaged in the agricultural and fisheries 
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mechanization; 
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8) promotion of technologies through agricultural and industrial extension activities 
18 
and techno-demo centers; 
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9) development of prototype and fabrication of agricultural machinery and equipment; 
20 
and 
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10) development and conduct of commercialization strategies involving all sectors 
22 
representing the demand and supply sides of agricultural and fisheries 
23 
mechanization technologies. 
24 
SECTION 8. Agri-Fishery Mechanization RDE Network. - An Agricultural 
25 
and Fisheries Mechanization Research, Development and Extension (ROE) network 
26 
is hereby organized composed of research and educational institutions, Local 
27 
Government Units, non-governmtlnt organizations and the recognized and well 
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established associations of agricultural and fisheries machinery assemblers, 
29 
manufacturers and distributors, agricultural engineers, farmers and fisherfolk. The 
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Agricultural and Fisheries Mechanization Research, Development and Extension 
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(ROE) network is responsible for the formulation and implementation of the National 
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Agricultural and Fisheries Mechanization ROE Agenda. The PHilMech shall be 
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responsible for organizing the Network and shall serve as Secretariat to the Network. 
34 
The Network shall be chaired by the Director of PHilMech. Moreover, the Agricultural 
35 
Mechanization Development Program of the University of the Philippines Los Banos, 
36 
which is part of the Network shall be strengthened and institutionalized to lead and 
37 
coordinate the agricultural and fishery mechanization research, development and 
38 
extension program of all academic institutions in the country. 


I 
Section 9. 
Agri-Fishery (VIachinery and Equipment Service Centers. -
2 
The Department and the LGUs shall encourage and support the private sector and 
3 
other rural entrepreneurs to establish and operate Agricultural and Fishery Machinery 
4 
and Equipment Service Centers in the Strategic Agricultural and Fishery 
5 
Development Zones (SAFDZs) and Agrarian Reform Communities. The Agri-Fishery 
6 
Machinery and Equipment Service Centers shall be operated as business enterprises 
7 
that will provide the following services: 
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a) 
after-sales service and warranty to their respective clients; 
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b) 
custom plowing, harrowing, harvesting, drying, milling and other farm 
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II 
c) 
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d) 
mechanization services; 
repair and troubleshooting services of agricultural and fishery machinery and 
equipment; and 
training of maintenance and proper use of agricultural machineries and 
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equipment. 
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However, ownership and operation of Agricultural and Fishery Machinery and 
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Equipment Service Centers, shall not be the exclusive domain of equipment and 
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machineries suppliers. These may be owned and operated by registered 
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cooperatives or SEC/ DTI registered businesses. 
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SECTION 10. Agri-Fishery Mechanization and Engineering Resource 
20 
Network. - The eXisting agricultural machinery information and data base of 
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PHilMech shall be strengthened into Agri-Fishery Mechanization and Engineering 
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Resource Network. It shall serve as a network of information system and data bank 
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on Agri-Fishery mechanization and engineering activities. It will also be used or 
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tapped as a facility for the on-line registration of Agri-Fishery machinery and 
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equipment and monitoring of Agri-Fishery mechanization and infrastructure projects. 
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This network shall be linked to other existing information and data base networks of 
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the Department, Agricultural Machinery Information Network of DOST, Agricultural 
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Mechanization Development Program of UPLB and of other government agencies. 
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SECTION 11. Research Grants. - To enhance research and technological 
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development on agricultural and fisheries mechanization, the government through the 
31 
BAR, DOST and CHED shall provide competitive research grants to members of the 
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Network to undertake needs oriented research as well as institutional development 
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and upgrading of laboratory facilities and eqUipment. 
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SECTION 12. Training and Scholarship Program. - The Department in 
35 
partnership with the State Colleges and Universities and the private sector shall train 
36 
the agricultural extension workers of the Local Government Units who in turn shall 
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train the farmers and fisherfolk on agricultural and fisheries mechanization 
38 
technologies and practices. The· DOLE and TESDA shall be responsible in the 


training of agricultural and fisheries machinery technicians and operators. 
2 
Furthermore, scholarships for graduate and undergraduate degree on agricultural 
3 
engineering and trade/vocational courses on agricultural and fisheries mechanization 
4 
shall be given priority by the Department, CHED and DOST. 
5 
SECTION 13. Manpower Complement. - All agricultural and fisheries 
6 
machinery pools and service centers including sales and distribution outlets and 
7 
manufacturing establishments either public or private shall have the required 
8 
manpower complement of licensed agricultural engineers and certified technicians 
9 
and operators in accordance with the guidelines and standards to be promulgated by 
10 
the BoAE and DOLE to ensure efficient operation and maintenance and good 
11 
management practices. 
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SECTION 14. Skills Certification of Agricultural Machiney Technicians 
13 
and Operators. - The TESDA in collaboration with the Department, BoAE, NAMDAC 
14 
and the national associations of agricultural engineers and agricultural machinery 
15 
assemblers, manufacturers and distributors shall undertake skills certification and 
16 
accreditation systems for agricultural and fishery machinery operators and 
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technicians. 
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ARTICLE IV 
LOCALASSEMBLY,MANUFACTURE,SUPPLY 
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AND AFTER SALES SERVICE 
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Section 15. Local Assembly and Manufacturing. - Production of locally-
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made engines and other machinery for agricultural and fisheries purposes shall be 
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promoted and encouraged by the .Department in partnership with the private sector, 
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and through joint venture agreement. For this purpose, the Department in partnership 
25 
with the recognized national organization of agricultural machinery assemblers, 
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manufacturers and distributors, agricultural engineers and the DOST shall undertake 
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the feasibility study and R&D for the local assembly and manufacture of agricultural 
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engines/prime mover, and other agricultural machinery and equipment. 
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SECTION 16. Incentives for local manufacturers and assemblers of Agri-
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Fishery machinery. - Ventures in local manufacture, fabrication and assembly of 
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Agri-Fishery machinery and equipment shall be eligible for loans under the ACEF, 
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otherwise known as the Agricultural Competitiveness Enhancement Fund under the 
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Program of the Department of Agriculture. These businesses shall be granted 
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incentives as long as they are considered as registered enterprises engaged in a 
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preferred area of investment pursuant to Article 39 of Executive Order 226 as 
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amended. They shall be eligible to apply for research grants from the Bureau of 
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Agricultural Research (BAR) to support testing and certification. Patents shall be 


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accepted as equity or collateral for loans. The BAR shall within six months from the 
2 
enactment of this Act support the conduct of a study on how patents shall be valued. 
3 
SECTION 17. Supply of Agricultural and Fisheries Machinery in 
4 
Government Procurement Program. - Only assemblers, manufacturers, importers, 
5 
suppliers, distributors and dealers accredited by the National Agricultural and 
6 
Fisheries 
Machinery 
Manufacturers, 
Importers, 
Distributors, 
and 
Dealers 
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Accreditation and Classification Board (NAMDAC) shall be eligible to supply 
8 
government procurement requirements on agricultural and fisheries machinery and 
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equipment based on their classification rating. Only agricultural and fishery 
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machinery tested by AMTEC shall be procured. 
11 
SECTION 18. After-Sales Service. - All agricultural and fisheries machinery 
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assemblers, manufacturers, importers, suppliers, distributors and dealers are 
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required to provide after-sales service and warranty to their respective clients which 
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shall be monitored by CAFEO. 
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ARTICLE V 
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TESTING AND EVALUATION, REGISTRATION, 
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STANDARDIZATION AND ACCREDITATION 
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Section 19. Testing and Evaluation. - Agricultural and fisheries machinery 
19 
and equipment to be sold in the market shall pass through testing and evaluation by 
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AMTEC in accordance with the national poliCies and guidelines to be promulgated by 
21 
the Secretary. Specifically, before it can be assembled, manufactured and 
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commercially sold in the market, the model of the machine and any modification 
23 
thereof should be tested by AMTEC and should pass the prescribed quality and 
24 
performance standards. The regular testing and evaluation of machinery sold shall be 
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undertaken by AMTEC on new models and design. Field tests shall likewise be 
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undertaken by AMTEC to ensure consistent quality of test units as well as on the 
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commercial units. The BAFPS shall maintain a certification registry of equipment and 
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machinery as well as a registry of those denied certification. 
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SECTION 20. Registration of Ownership of Agricultural and Fishery 
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Machinery and EqUipment. - All owners of agricultural and fishery machinery and 
31 
equipment must register their property with the Agricultural Engineering Office of 
32 
Municipal and City Government Units. 
33 
The Agricultural Engineering Office of the Local Government Units shall 
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establish and maintain a registry of agricultural and fishery machinery at the 
35 
municipal, city and provincial levels. The DA Regional Agricultural Engineering 
36 
Division shall maintain a registry of agricultural and fishery machinery at the regional 
37 
office whereas the BAFPS shall maintain a national database of all registered 


agricultural and fishery machinery. Each office shall ensure that these registries and 
2 
databases are available through the internet. 
3 
The Secretary shall promulgate national guidelines and procedures for the 
4 
registration of agricultural and fisheries machinery by the LGUs including the 
5 
collection of registration fees in accordance with the Local Government Code. 
6 
SECTION 21. Registration of manufacturers, fabricators, assemblers and 
7 
importers. - Within six months upon the enactment of this Act, all manufacturers, 
8 
fabricators, assemblers and importers must register with the BAFPS . 
9 
Three years upon the enactment of this Act, registrants must provide 
10 
certification by an accredited certifying body of all products that they have in the 
11 
market or intend to market and withdraw all products that have no certification. One 
12 
year after the enactment of this Act, the registrants must submit to the BAFPS the list 
13 
of equipment!machinery manufactured! fabricated! assembled! imported. 
14 
SECTION 22. Standards Development and Enforcement. - The Department 
15 
through the BAFPS in coordination with the DTI, DOST, BoAE and AMTEC and in 
16 
consultation with the accredited associations of farmers and fisherfolk, agricultural 
17 
machinery assemblers, manufacturers and distributors and agricultural engineers 
18 
shall develop standards, specifications and test procedures of agricultural and fishery 
19 
machinery. These standards should be in conformity with the International Standards 
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20 
Organization (EO) and shall be part of the existing Philippine Agricultural Engineering 
21 
Standards. 
22 
Thereafter, the Department and LGUs and in collaboration with the BoAE shall 
23 
enforce the above standards on the manufacture, sale and distribution on agriculture 
24 
and fisheries machinery and equipment, and its accreditation system for agricultural 
25 
and fisheries facilities and establishments. 
26 
The Secretary shall deputize the agricultural engineering offices of the LGUs 
27 
to monitor the implementation of regulation concerning certification, registration of 
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manufacturers, assemblers, dealers or importers and accreditation of agricultural and 
29 
fishery machinery testing centers. 
30 
Also, the Department of Public Works and Highways and the Local Building 
31 
Officials, consistent with the provisions of R.A. No. 8559 and in coordination with 
32 
CAFEO shall enforce the Philippine Agricultural Engineering Standards as part of the 
33 
implementation of the National Building Code of the Philippines particularly in the 
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design, construction, operation and maintenance of agricultural and fisheries 
35 
buildings and structures. 
36 
Section 23. Classification 
and 
Accreditation 
of 
Assemblers, 
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Manufacturers, Importers, Suppliers, Distributors and Dealers. - Agricultural and 
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fisheries assemblers, manufacturers, importers and suppliers, distributors and 


dealers shall be classified into small, medium and large, and shall be encouraged to 
2 
have their manufacturing/ service facility build-up; Provided that agricultural and 
3 
fisheries machinery assemblers, manufacturers, importers, suppliers, distributors and 
4 
dealers shall be classified and accredited based on their organizational strengths and 
• 
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track records, area of operation, marketing and distribution network, after sales 
6 
service and manufacturing capabilities. 
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SECTION 24. Organization of the NAMDAC Board. -
The National 
8 
Agricultural and 
Fisheries Machinery Assemblers, 
Manufacturers, 
Importers, 
9 
Distributors and Dealers Accreditation and Classification (NAMDAC) Board is hereby 
10 
organized as a private sector-led national accreditation and classifying body on 
II 
agricultural and fisheries machinery and shall perform the following functions: 
12 
a) 
Establishment of an updated and accurate database on their sector; 
13 
b) 
Formulate policies, guidelines and criteria for accreditation and classification 
14 
on manufacturers of agricultural and fisheries machinery; 
15 
c) 
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Encourage self regulation in the sector by delegating the task of accrediting 
and classifying manufacturers/dealers/ distributors and approval of the quality 
17 
and safety of their products to their respective associations; 
18 
SECTION 25. Composition of NAMDAC. - The NAMDAC shall be composed 
19 
of the heads of CAFEO, PHilMech, AFMeC, AMTEC and representatives from the 
20 
recognized and well established national association of assemblers, manufacturer, 
21 
importers, suppliers and distributors of agricultural and fisheries machinery and 
22 
equipment, and agricultural engineers. 
23 
The Infrastructure Support and Coordination Section of NAFC that serves as 
24 
Secretariat to the Agricultural and Fisheries Mechanization Committee (AFMeC) shall 
25 
also provide the necessary technical and administrative support to the NAMDAC and 
26 
hereby strengthened into a regular division of NAFC. 
27 
ARTICLE VI 
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INSTITUTIONS 
29 
SECTION 26. Agricultural and Fisheries Mechanization Committee. - The 
30 
Agricultural and Fisheries Mechanization Committee (AFMeC) under the NAFC shall 
31 
act as an advisory body to ensure the success of the programs and activities of the 
32 
Department concerning agricultural and fisheries mechanization. It is also tasked to 
33 
serve as the consultative and feedback mechanism from the lowest possible level to 
34 
the top decision makers and to assist in defining and formulating the goals and scope 
35 
of the country's agriculture and fisheries mechanization and infrastructure pOlicies, 
36 
plans, and programs. 
37 
The Agricultural and Fishery Mechanization Committees are likewise 
38 
organized and strengthened at the Regional, Provincial, City, Municipal and 


1 
Barangay Agricultural and Fishery Councils to integrate, coordinate, unify and 
2 
monitor the field implementation of Agri-Fishery mechanization and infrastructure 
3 
projects of various national government agencies, local government units, banking 
4 
and financial institutions and the private sector. 
5 
SECTION 27. Strengthening the DA Agricultural and Fishery Engineering 
6 
Groups. - Pursuant to Section 46 of R.A. No. 8435, a Central Agricultural and 
7 
Fishery Engineering Office (CAFEO) is hereby created as one of the regular service 
8 
of the Department which shall be under the supervision of the Department 
9 
Undersecretary in-charge of National Agricultural and Fishery Mechanization 
10 
Program. 
II 
The CAFEO shall have the following functions and responsibilities: 
12 
1) 
13 
14 
15 
2) 
16 
17 
3) 
18 
19 
20 
4) 
21 
22 
5) 
23 
24 
6) 
Coordinate, oversee and monitor the national planning and implementation of 
Agri-Fishery engineering, 
farm-lo-market roads 
and other Agri-Fishery 
infrastructure projects; 
Assist in the national planning, coordination and implementation of the national 
• 
Agri-Fishery mechanization program; 
Prepare, evaluate, validate and recommend engineering plans, designs and 
technical specifications on Agri-Fishery mechanization and infrastructure 
projects; 
Oversee and provide technical assistance to the operations of Agricultural 
Engineering Divisions of the DA Regional Field Units; 
Coordinate and integrate all agricultural and fisheries engineering activities of 
DA bureaus, attached agencies and corporations; and 
Enforce 
standards and other regulatory policies on agricultural and fishery 
25 
engineering. 
26 
Likewise, the Regional Agricultural Engineering Divisions (RAEDs) are hereby 
27 
strengthened, institutionalized or created in the Regional Field Units of the 
28 
Department to carry out the field implementation of the agricultural and fishery 
29 
engineering, mechanization and infrastructure programs and projects of the 
30 
Department. 
31 
All concerned DA bureaus 'and attached agencies implementing agri-fishery 
32 
mechanization and infrastructure projects such as but not limited to National Meat 
33 
Inspection Service, Bureau of Animal Industry, Bureau of Plant Industry, Agricultural 
34 
Training Institute, Bureau of Agricultural Research, Bureau of Soils and Water 
35 
Management, Bureau of Fisheries and Aquatic Resources, Philippine Coconut 
36 
Authority, Fiber Industry Development Authority, National Food Authority and Sugar 
37 
Regulatory Administration shall also establish or 
strengthen their agricultural 
38 
engineering services/division as part of the over-all network of CAFEO. 


1 
Section 28. Philippine Center for Post Harvest Development and 
2 
Mechanization. -
The Philippine Center for Post Harvest Development and 
3 
Mechanization· shall coordinate, 
plan and 
execute agricultural and fishery 
4 
mechanization and post harvest Rand D and extension programs and projects of 
5 
the Department and its manpower complement shall be augmented to assume these 
6 
responsibilities. 
7 
SECTION 29. Bureau of Agriculture and Fisheries Products Standards. -
8 
The Bureau of Agriculture and Fisheries Products Standards (BAFPS), in addition to 
9 
its functions under Sections 62 and 63 of R.A No. 8435 shall: 
10 
1) 
11 
12 
2) 
13 
14 
3) 
15 
16 
5) 
set and implement standards for 
agricultural and fishery machinery and 
equipment; 
formulate and enforce quality, safety and performance standards for 
agricultural and fisheries machinery ; 
formulate and enforce accreditation procedures for testing centers for 
agricultural and fisheries machinery ; 
formulate guidelines for the registration of ownership of agricultural and fishery 
17 
machinery ; 
18 
6) 
19 
20 
7) 
21 
22 
8) 
23 
maintain a national registry of agricultural and fisheries machinery certified by 
accredited testing centers; 
maintain a national registry of testing centers for agricultural and fisheries 
machinery; and 
maintain a national registry of owners, manufacturers, fabricators, assemblers 
and importers of agricultural and fishery machinery and corresponding serial 
24 
numbers. 
25 
The BAFPS is hereby renamed into Bureau of Agriculture and Fisheries Standards 
26 
(BAFS) and authorized to create a new division on agricultural and fisheries 
27 
machinery regulations. It may call upon experts, professional groups and other 
28 
government agencies to assist in the performance of its functions. 
29 
SECTION 30. Agricultural Machinery Testing and Evaluation Centers. -
30 
The existing Agricultural Machinery Testing and Evaluation Center (AMTEC) of the 
31 
College of Engineering and Agro-Industrial Technology (CEAT) of UPLB is hereby 
32 
institutionalized and shall compose of a Director and technical and administrative 
33 
personnel. The AMTEC is hereby designated as the premier and reference Testing 
34 
Center in the country, and for purposes of functional coordination and integration, 
35 
shall closely coordinate its activities with the BAFPS. As the premier Testing Center, 
36 
it shall assist the BAFPS in the formulation of quality, safety and performance 
37 
standards of agricultural and fisheries machinery and of accreditation guidelines for 


1 
testing centers. It shall also provide technical assistance in the establishment of 
2 
testing centers in other parts of the country. 
3 
SECTION 31. Department of Agrarian Reform. - The DAR in coordination 
4 
with the Department shall provide assistance to Agrarian Reform Beneficiaries in 
5 
securing their appropriate and needed Agri-Fishery machinery and equipment and/or 
6 
the establishment of Agri-Fishery Machinery Service Centers as part of the support 
7 
services in the Agrarian Reform Communities. The DAR shall complement the 
8 
technical support services of the Department and the LGUs by pooling and mobilizing 
9 
its agricultural engineers. In carrying out these tasks, the DAR shall establish or 
10 
strengthen its agricultural engineering services in its central, regional and provincial 
11 
offices. 
12 
• ARTICLE VII 
13 
RESPONSIBILITIES OF THE LOCAL GOVERNMENT UNITS 
14 
SECTION 32. Implementation by the Local Government Units. - The Local 
15 
Government Units, pursuant to the provisions of Republic Act No. 7160, otherwise 
16 
known as the Local Government Code, shall undertake applied research, extension, 
17 
dispersal, management and regulation of agricultural and fisheries machinery and 
18 
eqUipment including the collection of fees. 
19 
SECTION 33. Agricultural Engineering Offices of the Local Government 
20 
Units. - The Provincial, City and MuniCipal Agricultural Engineering Groups/Offices of 
21 
the Local Government Units (LGUs) organized under Executive Order No. 86, Series 
22 
of 1999 and Section 46 of R.A. 8435 shall serve as the planning, coordinating, 
23 
regulating and implementing bodies at the Provincial, City and Municipal levels on 
24 
agricultural and fisheries engineering, mechanization and infrastructure programs 
25 
and projects. Specifically, these Agricultural Engineering Offices shall have the 
26 
following functions and responsibilities: 
27 
1) provide agricultural engineering services which include engineering survey, 
28 
preparation and evaluation of plans, designs, technical specifications, feasibility 
29 
studies and cost estimates/program of work of irrigation, small water impounding, 
30 
soil conservation and management, farm machinery, slaughterhouses, poultry 
31 
dressing plants, post harvest facilities, auction markets, farm-to-market roads, and 
32 
other agricultural and fisheries infrastructure projects of the LGUs; 
33 
2) administer, supervise and coordinate the construction, operation, maintenance, 
34 
improvement and management of irrigation, small water impounding, soil and 
35 
water conservation structures and facilities, farm machinery, post harvest 
36 
facilities, auction markets, farm-to-market roads and other agricultural and 
37 
fisheries infrastructure projects of the LGUs; 


1 
3) undertake the registration of agri-fishery machinery and facilities, enforcement of 
2 
the Philippine Agricultural Engineering Standards and other agricultural and 
3 
fishery engineering regulatory activities 
in coordination and collaboration with 
4 
concerned national government agencies; 
5 
4) coordinate with concerned national government agencies with regards to the 
6 
implementation of national government programs and projects on irrigation, farm 
7 
mechanization, post harvest facilities, farm-to-market roads and agricultural and 
8 
fisheries infrastructure; 
9 
5) be in the frontline of the delivery of basic agricultural engineering services; 
10 
6) provide training and extension activities to farmers and fisherfolks particularly in 
11 
the installation, operation and maintenance of their irrigation, post harvest 
12 
facilities, agricultural and fishf:)ry machinery projects in coordination with the 
13 
agriculture and fisheries extension workers; 
14 
7) undertake and or coordinate the pilot testing and commercialization of matured 
15 
agricultural and fisheries engineering technologies; and 
16 
8) exercise such other powers and perform such other duties and functions as maybe 
17 
prescribed by law or ordinance. 
IS 
To effectively carry out the above functions and responsibilities, the Provincial, 
19 
City and Municipal Agricultural Engineering Offices are hereby strengthened and 
20 
institutionalized into the organizational structure of the LGUs, and if not yet existing, 
21 
shall be created in the particular LGUs. The LGUs belonging to first up to third 
22 
income class which are providing or implementing agricultural and fishery 
23 
infrastructure, mechanization anGl engineering projects shall hire 
at least one 
24 
agricultural engineer at the provincial, city and municipal levels. 
25 
In cases of provincial, city and municipal LGUs belonging to 4th to 6th income 
26 
class which are not capable to establish its Agricultural Engineering Office due to 
27 
financial constraints and limitations, the Department though its Regional Agricultural 
28 
Engineering Divisions shall augment and perform such responsibilities, and as 
29 
deemed necessary establish its provincial, city and municipal operation units, and 
30 
shall be allocated and provided with necessary funding and manpower requirements 
31 
for their operation. 
32 
ARTICLE VIII 
33 
PROHIBITED ACTS, PENALTIES AND SANCTIONS 
34 
SECTION 34. Prohibited Acts. - It is unlawful for any person to : 
35 
1) 
36 
37 
2) 
38 
sell, mortgage or lease agricultural and fishery machinery without being 
registered with the BAFPS; 
sell new agricultural and fishery machinery without warranty or after sales 
service. 


I 
3) 
2 
3 
4) 
4 
claim ownership to an agricultural and fishery machinery that has not been 
properly registered in his/her name. 
operate a testing center without proper accreditation. 
SECTION 35. Penalties. - Any person who shall violate any provision of 
5 
Section 35 of this Act shall upon conviction, be subject to a fine of not less than One 
6 
Thousand Pesos (P1,OOO.OO) but not more than Ten Thousand Pesos (P10,OOO.OO) 
7 
or imprisonment of not less than two (2) months but not more than one (1) year, or 
8 
both upon the discretion of the pourt, and/or other applicable penalties imposed 
9 
under the Consumer Act of the Philippines. 
10 
The purchase of non- certified or substandard agricultural and fishery 
11 
machinery for the government shall be dealt with the Corrupt Practices Act. 
12 
SECTION 36. Sanctions. - This provision shall take effect four years upon the 
13 
enactment of this law when all regulatory provisions have already been in place. The 
14 
Secretary or his duly authorized representative has the power to file before the 
15 
proper court the following: 
16 
1. forfeiture proceedings for agricultural and fishery machinery that is not duly 
17 
certified, without serial number and without warranty, and is substandard; 
18 
2. closure 
proceedings 
against 
business 
entities 
not 
duly 
registered 
as 
19 
manufacturers, assemblers, dealers or importers of agricultural and fishery 
20 
machinery, or sells new agricultural and fishery machinery not duly certified, 
21 
without a serial number, or without warranty, without after sales service and 
22 
substandard; and 
23 
3. closure proceedings against tes,ting centers that has not been duly accredited. 
24 
Any business that sell new agricultural and fishery machinery which was not duly 
25 
certified, without a serial number, without warranty, or without after sales service shall 
26 
be given one month to refund or replace the sold machinery duly corrected for any 
27 
deficiency as indicated. Failure to do so shall result to corresponding legal action 
28 
against the offending party. 
29 
ARTICLE IX 
30 
MISCELLANEOUS PROVISIONS 
31 
SECTION 37. Agricultural and Fisheries Mechanization Programs at the 
32 
local levels. - The Local Government Units through an ordinance shall also 
33 
formulate in consultation with the Department and implement their respective 
34 
Provincial, City and Municipal Agricultural and Fishery Mechanization Plans as a vital 
35 
component of their respective local development plans. 
36 
SECTION 38. Contiguous Farming. - The Department together with the 
37 
Department of Agrarian Reform shall carry out contiguous farming projects in order to 


I 
effect suitable field shapes and sizes conducive to efficient operation of agricultural 
2 
machinery and equipment and likewise to ensure its economies of scale. 
3 
The Contiguous Farming Projects shall: 
4 
1) promote farm land clustering with a minimum of 50-hectare cluster for 
5 
synchronized farming operations from land preparation to harvesting in 
6 
cooperation or contract with agricultural mechanized operation service providers; 
7 
2) undertake farm development planning; and 
8 
3) promote the strengthening of farmers cooperatives and associations. 
9 
SECTION 39. Use of Renewable Energy. - The use of renewable and non-
10 
conventional energy such as wind, solar, hydro, bio-mass and other farm-based 
II 
energy sources shall be promoted as power sources for the operation and 
12 
maintenance of agricultural and fisheries machinery. The Department in coordination 
13 
with the Department of Energy, DOST and State Colleges and Universities, and the 
14 
private sector shall undertake research and extension activities to enhance the use of 
15 
renewable and non-conventional energy in agricultural and fisheries operations. 
16 
Section 40- Infrastructure Support. - The government shall provide priority 
17 
investment for the infrastructure needs in clustered farm land identified as key 
18 
agricultural and fishery production areas to accelerate agricultural and fisheries 
19 
mechanization in the countrySide, and this include irrigation, farm-to-market roads, 
20 
post harvest, power and communications facilities. 
21 
SECTION 41. Implementing Rules and Regulations. - The Department 
22 
within six months upon the enactment of this Act and in consultation with the 
23 
stakeholders and other government agencies shall promUlgate the necessary rules 
24 
and regulations to implement this Act. 
25 
SECTION 42. Funding. - 1) The amount necessary to carry out the program 
26 
and in the implementation of the following activities shall be incorporated in the 
27 
General Appropriations Act: 
28 
a) 
Training of farmers, fisherfolk, farm workers, agricultural and fisheries 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
b) 
c) 
d) 
e) 
f) 
machinery 
operators 
and 
technicians, 
agricultural 
engineering 
extension workers and program implementers; 
Upgrading of agricultural and fishery mechanization facilities and 
equipment of the Department of Agriculture and Local Government 
Units; 
Information campaig~; 
Grants for the young entrepreneurs and agricultural engineers who 
intend to pursue agricultural and fishery machinery enterprises projects; 
Strengthening the DA and LGU's Agricultural Engineering Groups; and 
Formulation of regulations. 


1 
2) 
2 
All Local Government Units shall likewise include in their investment plans, as 
part of the priority appropriations of their 20% Local Development Fund, the 
3 
funding support for the implementation of their respective provincial, city, 
4 
municipal and barangay agricultural and fisheries mechanization programs; 
• 
5 
3) 
The Department shall set aside at least a total of PhP700 Million of the 
6 
Agricultural Competitiveness Enhancement Funds (ACEF) to support this Act 
7 
as follows: PhP300 Million for loans to local manufacturers, fabricators and 
8 
assemblers of agricultural and fisheries machinery to establish manufacturing 
9 
and service center facilities, PhP200 Million for loans to small farmers for the 
10 
purchase of agricultural and fisheries machinery and PhP200 Million for grants 
11 
to upgrade AMTEC and establishment of one testing center in the Visayas and 
12 
one testing center in Mindanao. The Secretary shall formulate guidelines for 
13 
access, disbursement and repayment for these funds; 
14 
4) 
The BAR shall set aside P 5 million annually from its regular R&D funds to 
15 
support patent applications and a research competitive grants program for the 
16 
testing and certification of locally designed Agri-Fishery equipment and 
17 
machineries; 
18 
5) 
19 
The CHED shall allocate funds from the Higher Education Development Fund 
necessary for the upgrading of agri-fishery mechanization laboratory facilities, 
20 
of concerned State Colleges and Universities, faculty training program and 
21 
scholarships; 
22 
6) 
The DAR shall allocate funds from the Agrarian Reform Fund necessary for 
23 
the 
provision of appropriate and needed Agri-Fishery machinery and 
24 
25 
equipment to Agrarian Reform Beneficiaries and/or the establishment of Agri-
Fishery Machinery Service Centers in the Agrarian Reform Communities; 
26 
7) 
The TESDA shall allocate funds from its annual appropriations necessary for 
27 
the skills certification and training program for agri-fishery machinery 
28 
technicians and operators. 
29 
SECTION 43. Congressional Oversight Committee. - The Congressional 
30 
Oversight Committee on Agricultural and Fisheries Modernization (COCAFM) shall 
• 
31 
be the congressional oversight committee for purposes of this Act. The COCAFM 
32 
shall perform the following functions: 
33 
a) 
Monitor and ensure the proper implementation of this Act; 
34 
a) 
Review the proper implementation of the National Agri-Fishery Mechanization 
Program and the use of its funds; and 
35 
36 
37 
38 
c) 
Such other functions it deems necessary. 
In this regard, the President shall submit to the COCAFM, an annual report of 
Program implementation. 


• 
SECTION 44. Separability Clause. - The provisions of this Act are hereby 
2 
declared separable, and if any clause, sentence, provision or section hereof, should 
3 
be declared invalid, such invalidity shall not affect the other provisions of this Act 
4 
which can be given force and effect without the provisions which have been declared 
5 
invalid. 
6 
SECTION 45. Repealing Clause. - All laws, decrees, executive orders and 
7 
other administrative issuances and parts thereof which are inconsistent with the 
8 
provisions of this Act are hereby repealed or modified accordingly. 
9 
SECTION 46. Effectivity. - This Act shall take effect fifteen (15) days after its 
10 
publication in two (2) newspapers of general circulation. 
11 
Approved.