Republic of the Philippines
HOUSE OF REPRESENTAT
Quezon City, Philippines
NINETEENTH CONGRESS
Second Regular Session
¥House Bill No. 8 7 8 3
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RECEIVEprL,
BY-
Introduced by HON. NICANOR M. BRIONES
Representative, AQAP Pa\itv List
EXPLANATORY NOTE
Amidst  the  threats  of African  Swine  Fever  and  Avian  Influenza,  we
remain hopeful in securing the future of the livestock and poultry industry in
the country as the demand for livestock and poultry meat and meat products
remain high. Along with this is the corresponding need to ensure the stability
of the corn industry, particularly the local production of yellow corn which is
mainly used for animal feed products.
The yellow corn industry continues to face various challenges despite
the   implementation   of  the   Department   of  Agriculture's   National   Corn
Program.  According to the  Philippine Yellow Corn Industry Roadmap 2021-
2040, the country recorded fifty-seven percent (57°/o) sufficiency of yellow corn
for feed  use  in  2020.  Local  production of yellow  corn reached  6.01  million
metric  tons  in  2020.  Meanwhile,  in  2022,  local  production  was  only  6.1
million mt. On the other hand, demand for yellow corn in 2022 reached 8.9
million  mt  according  to  stakeholders.  Thus,  there  is  a  recorded  deficit  in
yellow corn supply, compelling the government to resort to importation.
Based on the Roadmap, 74°/o of the yellow grains produced locally are
used for feeds. While local production seems adequate, it is important to take
note of post-harvest losses that significantly affect the quality and quantity of
available feeds.  It was reported that wet season crops have high pre-drying
moisture content, but current small-scale mechanical dryers are not enough
to  meet  demand,  while  solar  drying  was  not  deemed  reliable  in  terms  of
quality.
This was substantiated by reports that existing drying facilities can only
accommodate  7 mt for drying.  Meanwhile,  1  hectare can produce  15  mt of
corn. Hence,1 hectare of corn harvest can take up to 3-4 days of drying, Given
the  total number of hectares for corn in the country at 2  million,  existing
drying facilities are clearly insufficient. This is apart from the lack of storage


facilities. The yellow corn industry is in dire need of support.
As a complement and supplement of the Livestock, Poultry, and Dairy
Competitiveness      Enhancement      Fund,      the      Com      Competitiveness
Enhancement F`und aims to ensure adequate supply of yellow corn to support
food production and sustain food supply. This bill is filed, in consultation with
stakeholders,  to  address  the  prevailing needs  of the  industry,  particularly
post-harvest facilities. As this bill puts primary focus on post-harvest facilities
which the local farmers ask for, it is hoped that we can produce quality corn
and lessen post-harvest losses. This bill hopes to augment and improve local
capacity and production in order to ensure food self-sufficiency in the coming
years.
With  the  foregoing  premises  considered,  the  approval  of this  bill  is
earnestly sought.
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines
NINETEENTH CONGRESS
Second Regular Session
HouseBil|No.8783
Introduced by HON. NICANOR M. BRIONES
Repriesentcz€i.I/e, AGAP Party List
AN ACT
TO DEVELOP AND PROMOTE THE YELLOW CORN INDUSTRY, TO
ENHANCE THE AVAILABILITY OF AFFORDABLE AND QUALITY FEEDS,
TO PROVIDE FOR A CORN COMPETITIVENESS ENHANCEMENT FUND,
AND FOR OTHER PURPOSES
Be it enacted by the Senate cnd, House Of Represeritatiues Of th;e Ph:itippines in
congress assembled:
SECTIOH  1.  SJlort  ttt!e  oJ Act.  -  This Act  shall  be  known  as  the
"Yellow Corn Industry Act of 2023".
SEC. 2.  Declaration a/PoZ€cg. -It is the declared policy of the State
to promote the development and competitiveness of the yellow corn industry,
particularly the small-hold farmers, in order to increase the supply of yellow
corn, and to enhance the availability and affordability of feeds, as support to
the livestock, poultry, and dairy industry. It is likewise the policy of the State
to  increase the income of farmers and farm workers,  and  to  alleviate  rural
poverty   through   improved   productivity   and   competitiveness,   enhanced
production efficiency, and protection of the yellow corn industry from pests
and   diseases   through   mechanization,   extension   and   training   support
programs.
Towards this end, the State shall nurture an enabling environment and
establish responsive government policies and support programs for the small-
hold yellow corn farmers and give prime focus to the development of the yellow
corn industry, in support of the livestock, poultry, and dairy industries, in the
country.
The State recognizes the vital role of the private sector as partners in
the various facets of the yellow corn industry, and the organization of yellow
com farmers to be more competitive, and shall provide incentives and needed
support to encourage stronger partnership and consolidation.
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a)  The President may revise or adjust existing rates of customs duties
on   com   and   feed   import  up   to   their   respective   bound   rates
committed   by   the   Philippines   under   the   WTO   agreement   on
agriculture  and under ASEAN Trade  in  Goods Agreement  (ATIGA)
including any necessary change in classification applicable to their
importation, ProL/I.decz, that the adjustment is time-bound and that
the power herein delegated to the President shall only be exercised
when Congress is not in  session:  Proz/I.czecz, rty7ther,  that any order
issued by the President adjusting the applied tariff rates shall take
effect fifteen ( 15) days after publication.
b)  In the event of any imminent or forecasted shortage, or such other
situation   requiring   government   intervention,   the   President   is
empowered for a limited period and/or a specified volume to allow
the importation of corn and feed products at a lower applied tariff
rate  to  address  the  situation,   Proui.c!ecz,  that  the  power  herein
delegated to the President shall only be exercised when Congress is
not  in  session:  Prou{c!ecz, fitrfhe7-,  that  such  order  shall  take  effect
immediately.
Upon   resumption   of  session,   the   power   herein   delegated   to   the
President shall be immediately reviewed by Congress and may be withdrawn
or terminated through a Joint Resolution.
BBC. 8. Creation Of the Corn Competitiveness Enhancement Fund.
-  There  is  hereby  created  a  Com  Competitiveness  Enhancement  Fund,
herein referred to as the "CCEF`".
The CCEF shall consist of an annual appropriation of two billion and
eight-hundred  million  pesos  (Php  2,800,000,000.00)   sourced  from  tariff
collection  on  imported  corn,  feed  wheat,  feeds  and  other  products  and
ingredients for feeds in the next six (6) years following the approval of this Act.
It shall  be  automatically credited to  a special account in the  general
fund of the national treasury which shall be in place within ninety (90) days
upon the effectivity of this Act.  Prout.czed, that if the tariff collection from the
corn  and  feed  wheat  importation  exceeds  two  billion  and  eight  hundred
million pesos (Php 2,800,000,000.00) in any given year within the next six (6)
years following the enactment of this Act,  the excess tariff revenue shall be
earmarked by Congress and added to the CCEF included in the GAA of the
following year.
ProL".decz,  j/rfher,   that  the  corn  development  fund,   created  under
Presidential Memo No. 468, dated March  17,  1998, held in trust by the NFA,
is hereby dissolved and the remaining balance is hereby transferred to the
DA-National Corn Program.
Proz/I.czed, rfurfher77'Lore,  that the  allocation  and utilization  of the  CCEF
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shall be subject to the guidelines below:
a)  The Secretary of the DA shall be accountable and responsible for the
management and utilization of the  said fund in coordination with
other government agencies concerned;
b)  The amount allocated shall be released directly to the implementing
agencies as provided for in this Act based on the objectives and plans
of the Com Industry Development Roadmap, created in Section 4 of
this Act. ProL/I.czed, that the unutilized portion of the CCEF allocated
to the implementing agencies shall not revert to the general fund but
shall continue to be used for the purpose for which it was set aside.
F`und releases charged against the said funds shall not be subject to
any ceiling by the DBM; and
c)  Any program undertaken in accordance with this Act shall only be
deemed complementary and  supplementary to and  shall not be  a
replacement   of   any   existing   programs    for   farmers    already
implemented by the DA and other agencies concerned.
BBC. 9.  Auocatton and Disbursement Of the Corr. Competiti:i}eruess
Enhancement Fttnd. - Subject to the usual accounting and auditing rules
and regulations, the CCEF shall be allocated and disbursed, as follows:
a)  Eighty   percent   (80°/o)   for   mechanization   of  com   farms,   to   be
implemented  by  PhilMech  as  grant  in  kind  to  eligible  farmers'
associations  or  organizations,   registered  corn  cooperatives,   and
LGUs in the form of corn farm equipment such as tillers, tractors,
rotary  seeders,   sprayers,   harvesters,   corn   shellers,   mechanical
dryers,  and  the  like,  and  the  establishment  and  improvement  of
post-harvest     centers     (including     corn-silage     facilities),     and
warehouses and/or silos;
b)  F`ive   percent   (5%)    for   corn   seed   research   and   development,
promotion, and provision of high yield corn varieties;
c)   F`ive percent (5%)  for credit facility with minimal interest rates and
documentary requirements and no collateral requirements, to com
farmers and cooperatives, to be managed equally by the Land Bank
of the Philippines (LBP) and the Development Bank of the Philippines
(DBP);
d)  Five percent (50/o)  as direct financial assistance to be released and
implemented  by  the  DA-National  Corn  Program  for  corn  farmers
greatly affected by pest or diseases, natural disasters, or any tariff
adjustments and modification, and may be based on the changes in
the  farmgate  price,  Prou{c!ecz,  that  the  duration  of  the  financial
assistance  is  limited  during  corn  harvest  season  where  the  corn
farmers are adversely affected;
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e)  Three percent (3%)  for support extension and training activities to
increase corn productivity, and for scholarships and training course
grants by the TESDA. The fund shall be distributed equally to ATI,
TESDA, and PhilMech; and
f)   Two  percent  (2°/o)  for  organizing  and  clustering  of smallhold  corn
farmers  into  formal  groups,  cooperatives  or  organizations,  to  be
implemented by the Cooperatives Development Authority (CDA).
SEC.  10. Bone/iciclrfes a/ the CCEF. - The beneficiaries of the CCEF
shall be those small-hold corn farmers, farmworkers, and their dependents
listed  in  the  Registry System for Basic  Sectors in Agriculture  (RSBSA),  and
corn  farmer  cooperatives,  associations,  or  organizations  accredited  by  the
Department.
Priotjl.czec!, jtrfher,  preferential attention  should  be given to  small-hold
com farmers who are members of cooperatives, associations or organizations.
Within one hundred eighty (180)  days from the effectivity of this Act,
the Department, in consultation with farmers' cooperatives and organizations,
and LGUs, shall validate and update the master list of eligible beneficiaries to
ensure   that   those   listed   are   legitimate   raisers,   farmers,   farmworkers,
cooperatives, associations, and organizations.
SEC.  11. Reutezu a/ the CorrL CorrapetftiuerLess ErihancerrLerLt Fttrid. - The
following mandatory review of the CCEF` shall be performed:
a)  The Philippine Institute for Development Studies (PIDS)  shall conduct
impact evaluation of the  CCEF programs to corn productivity on the
second  (2nd),  third  (3rd)  and  sixth  (6th) year of the  effectivity of this
Act;
b)  The percentage allocation of the CCEF shall be reviewed on the third
(3rd) year from the effectivity of this Act for possible revisions  should
intervention priorities change; and
c)   Before the end of the sixth (6th) year from the effectivity of this Act, a
mandatory review shall be conducted by the Congressional Oversight
Committee on Agricultural and Fisheries Modernization  (COCAFM)  to
determine whether the CCEF` and its utilization as provided for under
this Act shall be continued,  amended,  or terminated. The increase or
decrease   in   farmers'  incomes   shall   be   a  primary   benchmark  in
determining the effectiveness of the  interventions under the  program
and its possible extension;
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In view of its oversight function, the COCAFM, at any time, may conduct
an assessment of the implementation of programs and utilization of CCEF as
directed under this Act.
SEC.  12.  Japzemerlt€ng Rt(Zes and Reg«Zat€orts. - Within forty-five
(45) days from the effectivity of this Act, the DA-National Corn Program shall,
in coordination with the BPI, PhilMech, ATI, TESDA, CDA, DBM, DTI, NEDA,
DOF`, DBP, LBP, PSA, and other government agencies concerned, formulate
the rules and regulations for the proper implementation of this Act.
SEC.  13.  Separab€Z€tg C[ouse. - If any provision of this Act shall be
held  unconstitutional  or  invalid,  the  remaining  provisions  which  are  not
affected thereby shall continue to be in full force and effect.
SEC. 14. Repealing Chattse. -All other laws, decrees, executive orders,
rules, or regulations inconsistent with the provisions of this Act are hereby
repealed, amended, or modified accordingly.
SEC.15. E/Tect€uttg. -This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general circulation.
Approued,
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