FOURTEENTH CONGRESS OF THE 
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FWPUBLIC OF THE PHEIPPINES 
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Second Regular Session 
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8 
BUG14 
!’?.:ti 
SENATE 
Introduced by Senator Antonio “Sonny” F. Trillanes IV 
EXPLANATORY NOTE 
Republic Act No. 8435, otherwise hown as the Agriculture and Fisheries Modernization 
Law was enacted in response to the pressing need to modernize agriculture. The salient 
features and objectives of the law were based on the policy recommendations of the 
Congressional Commission on Agricultural Modernization (AGRICOM) report. 
However, the proposal as regards the restructuring of the Department of Agriculture and 
agriculture-related bureaucracies was overlooked, leaving the Department ill-equipped to 
deal with the challenges of the aforesaid law. The Department could not cope with the 
objectives of the new law, drawing on its old bureaucratic framework that is not directed 
towards the new policy track provided for by the law. 
Among the problems that the AGRICOM report identified, which remain prominent in 
the present bureaucratic structure of the DA and related agricultural agencies, are the 
following’: 
1. The agricultural bureaucracy is a jumble of functional agencies, commodity 
corporations, and attached agencies. The Department of Agriculture - which has 
40,000 people - should obviously be the lead agency. But interagency coordination is 
weak and unclear; 
2. There is a duplication of effort, there is trouble of controlling, monitoring, and 
rationalizing the use of agricultural funds; and 
3. Devolution has weakened the linkage between central and local governments, and has 
affected extension services. 
In this light, this bill seeks to functionally and structurally rationalize the Department of 
Agriculture into a Department of Agriculture and Fisheries (DAF). Hopefully, this will 
address the institutional weakness of the DA for the effective discharge of agricultural 
policies and programs. The renaming of the DA into the DAF intends to correct the 
historical neglect of the fisheries sector. All the functions and services of departments, 
agencies, councils, bureaus, units, and offices of the government concerned with 
agriculture and fisheries shall be under the tutelage of the DAF. 
In view of the foregoing, approval of this measure is earnestly sought. 
A N T ‘ O N ~  
“SONNY” F.’TRILLANES 
Senator 
llnstitutions and Bureaucracy: Rwisiting the AGRlCOM Report 
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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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8 AUG 14 P2 3 1  
SENATE 
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Introduced bv Senator Antonio “Sonnv” F. Trillanes IV 
AN ACT 
RATZONALIZING THE AGRICULTURE AND FISHERIES BUREAUCRACY 
REDEFINING THE FUNCTIONS OF THE DEPARTMENT OF AGRICULTURE 
AND VARIOUS AGENCIES TO BRING ABOUT AGRICULTURE AND 
FISHERIES MODERNIZATION, APPROPRIATING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES. 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Department of 
Agriculture and Fisheries Rationalization Act of2008” 
SEC 2. Declaration of Policy. - It is hereby declared the policy of the State to 
develop the agriculture and fisheries sectors in order to attain economic growth, alleviate 
rural poverty, assure food security and make farmers and fisherfolk competitive. To this 
end, policies and programs concerned with agriculture and fisheries shall be rationalized 
to achieve in the most efficient and effective way the national goal of enhancing 
productivity to raise the quality of life for all, especially the underprivileged. Institutions, 
agencies, councils, bureaus, units, and offices of the government concerned with 
agriculture and fisheries shall be rationalized to conform to the following objectives: 
1. To provide adequate rural public goods including infrastructure, irrigation, post- 
harvest facilities and other production support, marketing assistance and demand-driven 
research and development that will upgrade the productivity, efficiency and profitability 
of farms and fisheries; 
2. To minimize regulatory and licensing activities to areas that ensure the quality of 
products and protect the health of consumers and the environment; prevent market 
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distortions and promote neutral policies that will bring out the natural comparative 
advantage of Philippine agricultural and fisheries products; and 
3. To promote transparency in governance and participation of all stakeholders and 
relevant government and private agencies. 
SEC.3. Definition of Terms. - When used in this Act, unless the context 
otherwise requires: 
1. Agribusiness shall refer to the unified and systematic way of considering production, 
processing, marketing and distribution of agriculture and fishery products. 
2. Agriculture shall refer to the cultivation of soil, planting of crops, growing of fruit 
trees, raising of livestock and poultry including the harvesting, processing, and marketing 
of such farm products, and other farm activities and practices. 
3. Department shall refer to the Department of Agriculture. 
4. Extension services shall refer to technology transfer activities such as training of 
farmers, fisherfolk, and those engaged in agriculture and fisheries, input and credit 
assistance, marketing assistance, and similar related services. 
5. Fisheries shall refer to all activities relating to the act or business of fishing, culturing, 
preserving, processing, marketing, developing, conserving, and managing aquatic 
resources and the fishery areas, including the privilege to fish or take aquatic resource 
thereof 
6. Food processing shall refer to the transformation, by hand or machine, of food 
materials into new products, regardless of whether it is done in a factory or domicile of 
the processor and whether the products are sold wholesale or retail. 
7. Zniegrnte shall mean to make a part of a larger unit or office with the same or similar 
functions. 
8. Zrrigntion shall refer to supplying dry land with water by means of ditches, pipes or 
streams. 
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9. Market information shall include, but shall not be limited to, information, seminars 
and training on market that enable fanners and fisherfolk to make sound investment 
decisions and earn maximum returns. 
10. Market infrastructures shall include, but shall not be limited to, facilities such as 
market buildings, slaughterhouses, holding pens, cold storage and other related facilities 
used by the farmers and fisherfolk in marketing their produce. 
11, Marketing assistance shall include up-to-date and continuing information on input 
and output prices, the availability of needed inputs, assistance to gain access to markets 
for output, list of possible business ventures in their locality, and the like. 
12. Post-harvest facilities shall refer to post-harvest equipment and machinery such as, 
but not limited to, threshers, moisture meters, dryers, weighing scales, milling equipment, 
packing and canning machinery, storage facilities, buying stations, market infrastructure 
and transportation facilities. 
13. Product standards shall refer to a predetermined set of description of quality, 
quantity and such other measures and characteristics specific to the type, kind and degree 
of processing of particular products. 
14. Quarantine shall refer to a period of time during which a vehicle, person, animal or 
material suspected of carrying a contagious disease is detained at a port of entry under 
enforced isolation to prevent disease from entering a country. It also refers to the place of 
such detention. 
15. Rationalization shall refer to the reorganization of the bureaucracy in order to 
streamline the both the structure and functions based on identified government objectives 
and policies for increased effectiveness and efficiency. 
16. Regional operations shall refer to all the activities, programs and projects done by the 
regional offices. 
17. Research and development shall refer to all organized activities designed to search 
for new knowledge or modify existing ones, develop new methods and techniques of 
operation, tools, equipment or types of organisms, through the application of the 
scientific method. 
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18. Resource-nccounting shall refer to a process of tracking changes in the environment 
and natural resources biophysically and economically (in monetary terms). 
19. Small fnrmers andfisherfolk shall refer to natural persons 
20. Secretary shall refer to the Secretary of the Agriculture dependent on small-scale 
subsistence farming and/or fishing as their primary source of income or to those engaged 
in wholesale, barter or exchange of agricultural and/or fishery products which do not 
exceed a gross value of one hundred eighty thousand pesos (P180,OOO.OO) per annum 
based on 1992 constant prices. 
21, Trnnsfer shall mean to remove and place in another unit or office. 
CHAPTER 1 
THE DEPARTMENT PROPER 
SEC. 4. Rntionalizntion. - The Department of Agriculture, hereinafter referred to 
as the Department, is hereby renamed as the Department of Agriculture and Fisheries, 
and structurally and functionally rationalized, in accordance with the provisions of this 
Act. The functions and services of departments, agencies, councils, bureaus, units, and 
offices of the government concerned with agriculture and fisheries shall likewise be 
rationalized in accordance with the provisions of this Act. 
SEC. 5. Mandate. - The Department shall be the government agency responsible 
for the development of sustainable agriculture and fisheries, food security, promotion of 
equity, people empowerment and global competitiveness. 
In pursuit of this mandate, the Department shall provide the policy framework, 
direct public investments, and in coordination with local government units provide 
support services needed to make agriculture, agri-based enterprises and fisheries 
profitable and to help spread the benefits of development to the poor, particularly those in 
the rural areas. 
To fulfill this mandate, it shall be the primary concern of the Department to 
improve rural income and employment opportunities for farming and fishing 
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communities. It shall institutionalize efficient mechanisms to promote the active 
participation of the people through people’s organizations and non-government 
organizations in policy-making bodies for agriculture and fisheries, in the formulation 
and implementation of plans and programs, and in the monitoring and evaluation of the 
same to ensure their relevance and responsiveness. 
SEC. 6. Powers end Functions. - The Department shall have the following 
powers and functions: 
1. Formulate policies and plans, and regulate, implement, monitor, and evaluate all 
programs and activities relating to agriculture and fisheries; 
2. Provide integrated support services in the production, harvesting, storage and handling, 
processing, marketing, development, and management and preservation of agricultural 
and fisheries resources; 
3. Provide comprehensive support to all the extension workers of local government units, 
non-governmental organizations, and farmers and fisherfolks’ organizations equipping 
them with adequate knowledge and skills to enable them to train and provide 
technological information and managerial skills to farmers, fisherfolk, and entrepreneurs 
on the production, harvesting, storage and handling, processing, marketing, and financing 
aspects of agricultural and fisheries enterprises; 
4. Assure the availability, adequacy, accessibility and affordability of food supplies to all, 
at all times; 
5. Collect, analyze, and disseminate information on agriculture and fisheries; 
6. Provide assistance and support services to facilitate market access for agricultural and 
fisheries producers and entrepreneurs particularly low income farmers in the processing 
and marketing of their agricultural and agri-based goods; 
7. Provide the mechanism for the participation of farmers, fisherfolk, and entrepreneurs at 
all levels of policy-making, planning, and program-formulation; 
8. Conduct, coordinate and disseminate research studies on agriculture and fisheries; 
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9. Exercise regulatory functions over the agriculture and fisheries sector to prevent the 
over-exploitation of resources, protect the health and safety of the public, prevent the 
spread of pests and diseases, and prevent anti-competitive measures, and enforce 
international commodity agreements which then Philippines is a party to; 
10. Promulgate and enforce all laws, administrative orders, rules and regulations relating 
to agriculture and fisheries; 
11. Coordinate with local and international government and private agencies, offices and 
institutions on all matters related to agriculture and fisheries; and, 
12. Perform such other functions as may be provided by law. 
SEC. 7. Structure. - The Department shall consist of the Department Proper and 
attached councils, The Department Proper shall consist of the Office of the Secretary, 
offices of the Undersecretaries, Assistant Secretaries, bureaus, research institutes, and 
regional offices. 
CHAPTER 2 
OFFICE OF THE SECRETARY 
SEC. 8. Duties of the Secretary. - The Secretary shall have the following 
responsibilities: 
1. Advise the President with respect to programs and activities relating to agriculture and 
fisheries; 
2. Develop and recommend to the President policies for fostering orderly growth of the 
country’s agriculture and fisheries sectors; 
3. Exercise leadership at the direction of the President in coordinating government 
activities affecting agriculture and fisheries; 
4. Provide technical assistance and information including a clearinghouse service to aid 
local government units in developing rural agriculture and fisheries enterprises; 
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5. Consult and cooperate with local government officials including, when appropriate, 
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holding informal public hearings, with respect to government programs and activities 
related to agriculture; 
6. Encourage comprehensive planning by government units with the full participation of 
non-government organizations, people’s organizations and other members of civil 
society; 
7. Encourage private enterprise to serve the country’s agriculture and fisheries 
development needs; 
8. Conduct continuing comprehensive studies; and 
9. Make available findings with respect to the problems of agriculture and fisheries 
development and modernization. 
SEC. 9. Offlces under the OfJice of the Secretary. - There are hereby created the 
following offices under the Office of the Secretary: 
1. Administrative, Finance and Legal Service; 
2. Information and Communication Staff; and 
3. Policy and Planning Service. 
SEC. 10. Administrative, Finance and Legal Service. - The Administrative, 
Finance and Legal Service (AFLS) shall be headed by an Assistant Secretary and shall 
have the following functions: 
1. Develop human resources in the agriculture and fisheries bureaucracy by providing 
opportunities for continuing career development and benefits that will maximize personal 
productivity; 
2. Provide personnel, records, information, training and other general services; 
3. Provide services related to budgeting, accounting, and management; 
4. Handle the legal requirements including those pertaining to the quasi-judicial and 
regulatory functions of the Department; and, 
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5. Perform such other functions assigned to it by the Secretary or as may be provided by 
law. 
SEC. 11. Information and Communication Service. - There is hereby created 
the Information and Communication Service (ICs) which shall be headed by an Assistant 
Secretary. 
The ICs shall have the following functions: 
1. Design and set-up the National Information Network @IN) as defined and described in 
R.A. 8435; 
2. Provide an integrated, comprehensive, and computer-based multimedia information 
system and service; 
3. Be mainly responsible for the compilation, and lssemination of information on 
production technologies, market strategies, competition, foreign assistance, grants, credit, 
business ventures, laws, orders, rules and regulations, and other related information 
pertaining to agriculture and fisheries; 
4. Exercise technical supervision over data collection; 
5. Provide information regarding the objectives, plans, programs, and activities of the 
Department and represent and promote the interests and concerns of the Department 
before the general public and other government agencies and private institutions, 
including the media; and, 
6. Perform such other functions assigned to it by the Secretary or as may be provided by 
law. 
SEC. 12. Philippine Economic Environmental and Natural Resources 
Accounting Office. - There is hereby created a Philippine Economic Environmental and 
Natural Resources Accounting Division (PEENRA) under the Information and 
Cominunication Service which shall be headed by a Division Chief. 
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SEC. 13. Functions of the PEENRA Division. - The PEENRA Division shall 
have the following functions: 
1. In coordination with the Agriculture and Fisheries Research Development and 
Extension Council (AFRDEC) and other appropriate government and private agencies 
and institutions, collect, analyze, interpret and disseminate data required for 
environmental and natural resources accounting in the agriculture and fisheries sector 
through the National Information Network; 
2. Develop policy instruments and tools, formulate and implement policies to ensure that 
the agriculture and fisheries sectors are made accountable for the impact of their activities 
on our natural resources and environment and to account for the use of the agriculture 
and fisheries resources as a natural capital; 
3. In coordination with the Agriculture and Fisheries Training Institute (AFTI), conduct 
training and information dissemination activities on agriculture and fisheries resources 
accounting; 
4. In coordination with the Agriculture and Fisheries Research, Development and 
Extension Council (AFRDEC), conduct special studies and research on the impact of 
agriculture and fisheries on our natural resources and environment and other related 
studies; and 
5. Perform such other functions assigned to it by the Secretary or as may be provided by 
law. 
SEC. 14. The PEENRA System - The Philippine Economic Environmental and 
Natural Resources Accounting Division shall form part of the PEENRA System created 
under Executive Order No. 406, series of 1997. 
SEC. 15. Transfer of Functions. - The functions, powers and duties of the 
Bureau of Agricultural Statistics, Information and Technology Center for Agriculture and 
Fisheries, and the Agriculture and Fisheries Information Service are hereby transferred to 
the ICs. 
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SEC. 16. Policy and Planning Service. - There shall be created the Policy and 
Planning Service (PPS) which shall be headed by an Assistant Secretary. The PPS shall 
have the following functions: 
1. Policy formulation, integration of plans 'and programs emanating from all units, 
bureaus, and offices of the Department; 
2. Data analysis, monitoring, and evaluation of the implementation of said plans and 
programs through its management information system; 
3. Analysis of economic information relating to agriculture and fisheries; 
4. Such other functions assigned to it by the Secretary or as inay be provided by law 
SEC. 17. Trnnsfer of Functions. -- The functions of the Planning and Monitoring 
Service are hereby transferred to the PPS. 
CHAPTER 3 
OFFICES OF THE UNDERSECRETARIES 
SEC. 18. Undersecretaries. -- There shall be four (4) Undersecretaries who shall 
assist the Secretary in the exercise of the mandate and in the discharge of the powers and 
functions of the Department 
1) Undersecretary for Marketing Assistance and Regulations; 
2) Undersecretary for Research, Development and Extension; 
3) Undersecretary for Production Assistance Services; and 
4) Undersecretary for Regional Operations. 
SEC. 19. Functions of the Undersecretaries. - An Undersecretary shall have the 
following functions: 
I, Exercise supervision and control over the services, offices, bureaus, units including the 
officers and employees under hisher assigned area of responsibility; 
2. Implement the laws, orders, issuances, rules and regulations as mandated and directed 
to by law or the Secretary; 
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3. Through a participatory process, facilitate the formulation of hisher services' short, 
long-term and strategic plans, programs and activities in accordance with the mandate 
given by law and executive orders, issuances and directives including the 
implementation, monitoring and evaluation of the same. 
4. Ensure that the plans and activities of hisiher service is properly coordinated and in 
harmony with those of the other units and offices in the Department and with the overall 
mandate given to the Department by law; and 
5. Perform such other functions assigned by the Secretary or as may be provided by law. 
CHAPTER 4 
MARKETING ASSISTANCE AND REGULATION 
SEC. 20. Marketing Assistance and Regulation. - There is hereby created the 
Marketing Assistance Regulation Services ( M A R S )  which shall be headed by an 
Undersecretary. 
The MARS shall have the following functions: 
1. Identify markets for Philippine agricultural products and assist in the planning of 
market centers, marketing channels, and distribution networks; 
2. Establish National Marketing Assistance Program that will immediately lead to the 
creation of a national marketing umbrella, matching supply and demand in both domestic 
and foreign markets; 
3. Identify, develop and strengthen local and foreign markets for Philippine agriculture 
and fishery products through, but not limited to, trade missions and trade fairs; 
4. Conduct research and studies in domestic and foreign agriculture and fisheries 
economies, trade, community programs, and related topics; 
5. Receive and analyze the reports of Agricultural Attaches; 
6. Develop, codify, promulgate, implement and monitor adherence to and compliance 
with agriculture and fisheries product standards in order to ensure consumer safety and 
promote the competitiveness of agriculture and fisheries products; 
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7. Review, codify and implement all laws, orders and regulations related to agriculture 
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and fisheries such as quarantine laws, sanitary and phytosanitq measures and other 
regulatory programs to control and eradicate animal and plant pests and diseases; 
8, Conduct regular inspections to ensure the safeness of agriculture and fisheries 
products; 
9. Monitor the volume of rice and take appropriate measures to ensure its availability; 
and 
10. Perform such other functions as may be provided by law or assigned to it by the 
Secretary. 
SEC. 21. Bureaus and Offices. - The MARS shall be composed of the following 
bureaus and offices: 
1. Bureau of Food Security; 
2. Bureau of Agriculture and Fisheries Product Standards; 
3. Bureau of Quarantine; 
4. Bureau of Inspection and Food Safety; and 
5. Control and Surveillance Office. 
SEC. 22. Bureau of Food Security. - There shall be a Bureau of Food Security 
(BFS) which shall be headed by a Director, a career officer. The BFS shall have the 
following functions: 
1. Formulate, develop, promulgate and implement a national food security program in 
coordination with the appropriate government and private agencies, offices, entities and 
units; 
2. Monitor and provide updated information on the current status of the volume of rice 
stocks and major staples of the country; 
3. Make regular national and regional forecasts on the supply and demand of rice and 
major staples and, based on forecasts of rice shortages and during calamities, exercise 
control over the flow and distribution of rice in order to ensure its availability; 
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4. Recommend to the AFRDEC and other appropriate offices, research, development and 
extension subjects and activities in support of the national food security program; and 
5. Perform such other functions as may be provided by law or assigned to it by the 
Secretary. 
SEC. 23. Transfer of Powers and Functions. - The regulatory power and 
functions and the appropriate units or sections of the National Food Authority shall be 
transferred to the Bureau of Food Security and rationalized in accordance with the 
provisions of this Act. 
SEC. 24.. Bureau of Agriculture and Fishery Product Standards. 
There shall be a Bureau of Agriculture and Fisheries Product Standards (BAFPS) which 
shall be headed by a Director, a career officer. The BAFPS shall have the following 
functions: 
1. Formulate and enforce standards of quality in the processing, preservation, packaging, 
labeling, importation, exportation, distribution, and advertising of agricultural and 
fisheries products; 
2. Conduct research on product standardization, alignment of the local standards with the 
international standards; and 
3. Conduct regular inspection of processing plants, storage facilities, abattoirs, as well as 
public and private markets in order to ensure freshness, 
SEC. 25. Transfer of Powers and Functions. - The powers and functions of the 
National Dairy Authority, Food Development Center and the units safety and quality of 
products. 
1. Formulate and enforce standards of quality in the processing, preservation, packaging, 
labeling, importation, exportation, distribution, and advertising of agricultural and 
fisheries products; 
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2. Conduct research on product standardization, alignment of the local standards with the 
international standards; and 
3. Conduct regular inspection of processing plants, storage facilities, abattoirs, as well as 
public and private markets in order to ensure freshness, safety and quality of products. 
SEC. 26. Bureau of Quarantine. - There shall be a Bureau of Quarantine (BQ) 
that shall be headed by a Director, a career officer. The BQ shall have the following 
functions: 
1. Examine imported plants and animals, their products, and other materials capable of 
harboring pests, pathogens and vectors of diseases and process requests for approval of 
import-export permits; 
2. Enter into and inspect all buildings, storage places, transportation vehicles and 
carriers, passengers, crew, luggage and mails for the purpose of implementing Section 
27(a) of this Chapter and other regulatory and quarantine laws; 
3. Inspect, administer treatment and certify plants and animals, their products and other 
related materials intended for export, if the importing country so requires; 
4. Confiscate and destroy or refuse entry of plants, animals, and their products involved 
in prohibited importation and deny inspection certification or clearance of the same; and 
5. Perfom such other functions as may be provided by law or assigned to it by the 
Assistant Secretary for Regulatory Services. 
SEC. 27. Transfer of Powers and Functions. - The appropriate units or sections 
of the Bureau of Animal Industry and Bureau of Plant Industry are hereby transferred to 
and integrated with the Bureau of Quarantine and rationalized in accordance with the 
provisions of this Act. 
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SEC. 28. Bureau of lnspection and Food Safety. - There shall be a Bureau of 
Inspection and Food Safety (BIFS) which shall be headed by a Director, a career officer. 
The BIFS shall have the following functions: 
1. Formulate, develop, promulgate, implement and monitor compliance with guidelines 
pertaining or related to food safety, the use of fertilizers and pesticides consistent with 
sustainability in agriculture and fisheries, and proper labeling of agriculture and fisheries 
products; 
2. Conduct inspection of agriculture and fisheries products for the purpose of 
implementing Section 29(a) of this Chapter and conduct food safety and consumer 
education programs; and 
3. Perform such other functions as may be provided by law or assigned to it by the 
Assistant Secretary for Regulatory Services. 
SEC; 29. Transfer of Functions. - The functions of the National Meat Inspection 
Council, and the Fertilizer and Pesticide Authority are hereby transferred and integrated 
with the Bureau of Inspection and Food Safety and rationalized in accordance with this 
Act. 
CHAPTER 5 
PRODUCTION ASSISTANCE SERVICES 
SEC. 30. Production Assistance Services. - There is hereby created a Production 
Assistance Services (PAS) which shall be headed by an Undersecretary and shall have 
the following functions: 
1. 
production of agricultural commodities; and 
2. Support farmers, fisherfolk and their organizations, the local government units and 
participants in the agriculture and fisheries sector in increasing production, harvesting, 
storage and handling, processing, marketing 
Coordinate the provision of public goods that are critical to the efficient 
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SEC. 31. Bureaus and Offices. - The PAS shall be composed of the following 
bureaus and offices: 
1. Bureau of Irrigation Services; 
2. Bureau of Soil and Water Management; 
3. Bureau of Rural Infrastructure Modernization; and 
4. Bureau of Credit Services Support. 
SEC. 32. Bureau of lrrigation Services. - The National Irrigation Administration 
is hereby renamed the Bureau of Irrigation Services (BIS) and rationalized in accordance 
with the provisions of this Act. The BIS shall be headed by a Director, a career officer, 
and shall have the following functions: 
1. 
Coordinate with and provide technical assistance to the local government units 
and other appropriate government and private agencies, institutions, and offices in 
planning, designing, constructing, and selecting appropriate irrigation development 
schemes based on the criteria specified in Section 28 of R.A. 8435; 
2. Improve, rehabilitate, and maintain all types of irrigation projects including the 
operation of major irrigation structures such as the headwork and main canals, and tum- 
over of the operations and maintenance of the national irrigation system's secondary 
canals and on-farm facilities to qualified Irrigators Associations in the locality; 
3. Provide technical assistance to local government units, and devolve the planning, 
design, and management of communal irrigation systems including the transfer of the 
assets and resources of the National Irrigation Administration in relation to the communal 
irrigation systems to the local government units; 
4. Formulate and develop a plan for the promotion of a private-sector led development of 
minor irrigation systems such as Shallow Tube Wells (STWs), Low Lift Pumps (LLPs) 
and other inundation systems which shall he included in the Agriculture and Fisheries 
Modernization Plan referred to in Chapter 2 of R.A. 8435; 
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5. Review and recommend proposals for the construction of irrigation facilities through 
other viable schemes such as build-operate-and-transfer, build, transfer, and other 
schemes that will fast track the development of irrigation systems; 
6. Review irrigation service fee rates and recommend to the Department reasonable rates; 
7. Monitor the implementation of and evaluate research, development programs 
pertaining to irrigation and review every four (4) years all existing irrigation systems to 
determine their viability and effectiveness; 
8. Recommend plans, programs, policies, rules, and regulations to the Secretary and 
provide for the technical assistance in the implementation of the same; and 
9. Perform such other functions as may be provided by law or assigned to it by the 
Secretary. 
SEC. 33. Bureau of Soils and Wafer Management. - There shall be a Bureau of 
Soils and Water Management (BSWM) which shall be headed by a Director, a career 
officer. The BSWM shall have the following functions: 
1. Advise and render assistance on matters relating to the utilization and management of 
land and water resources; 
2. Formulate measures and guidelines for effective soil, land, and water resource 
utilization, as well as soil conservation in agricultural areas and other areas affecting 
agriculture; 
3. Prepare plans and recommendations, as well as assist the farmers, local government 
nits and other members of the agriculture sector, in soil impounding, prevention of soil 
erosion, fertility preservation and other matters related to soil and water management; 
4. Coordinate with government agencies on matters related to soil and water 
management; 
5. Engage in rainmaking projects for agricultural areas and watersheds to solve the 
problem of prolonged droughts and minimize their effects on standing agricultural crops; 
6. Recommend plans, programs, policies, rules and regulations to the Secretary and 
provide technical assistance in the implementation of the same; and 
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7. Perform such other functions as may be provided by law or assigned to it by the 
Assistant Secretary for Support Services. 
SEC. 34. Bureau of Rural Znfrrntructure Modernlzntion. - There shall be a 
Bureau of Rural Infrastructure Modernization (BRIM) which shall be headed by a 
Director, a career officer. The BRIM shall have the following functions: 
1, 
In coordination with Department of Public Works and Highways, the Department 
of Transportation and Communications, the Department of Trade and Industry and the 
local government units, address the infrastructure requirements of the agriculture and 
fisheries sectors; 
2. Together with the local government units, strengthen its agricultural and fisheries 
engineering groups to provide the necessary technical and engineering support in 
carrying out the smooth and expeditious implementation of agriculture and fisheries 
infrastructure projects; 
3. Coordinate with the Department of Public Works and Highways for the purpose of 
determining the order of priorities for public works funded under the Public Works Act 
which directly or indirectly affect agriculture and fisheries; 
4. ' Coordinate With Department of Transportation and Communications and other 
appropriate government agencies and offices, for the purpose of determining priority 
fishports, seaports and airports and facilitating the installation of bulk-handling and 
storage facilities, and other post-harvest facilities needed in order to enhance the 
marketing of agriculture and fisheries products; 
5. Coordinate with the local government units and resident farmers and fisherfolk in 
identifying priority locations of farm-to-market roads; 
6. Coordinate with the Department of Energy, Department of Public Works and 
Highways, National Electrification Administration, and National Power Corporation for 
the identification and installation of appropriate types of energy sources particularly in 
the use of non-conventional energy sources for the locality in order to enhance 
agriculture and fisheries development in the area; 
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7. Coordinate with the Department of Transportation and Communications to facilitate 
the installation of telecommunication facilities in priority areas; 
8. Coordinate with the Department of Public Works and Highways and local government 
units for the identification and installation of water supply system in 'the locality for 
ago-industrial uses; 
9. Coordinate with the Post-Harvest Horticulture, Training and Research Center of the 
University of the Philippines at Los Banos to identif) appropriate post-harvest facilities 
and technology; and 
10. Perform such other functions as may be provided by law or assigned to it by the 
Assistant Secretary for Support Services. 
SEC. 35. Bureau of Credit Support. - There shall be a Bureau of Credit Support 
which shall be headed by a Director, a career officer. 
The BCS shall have the following functions: 
1. Monitor the implementation of the agriculture, fisheries, and agrarian reform credit and 
financing system including the Ago-Industry Modernization Credit and Financing 
Program (AMCFP) in accordance with the provisions of 
Section 23 of R.A. 8435; 
2. Review all existing credit and guarantee schemes and funds pertaining to the 
agriculture and fisheries sectors in order to rationalize and consolidate the same into an 
Agriculture and Fisheries Credit Guarantee Fund in accordance with the provisions of 
Section 25 of R.A. 8435; 
3. Recommend plans, programs and policies relating to credit assistance for the 
agriculture and fisheries sectors; 
4. Coordinate with other government and private agencies and entities in the performance 
of its functions; and 
5. Perform such other functions as may be provided by law or assigned to it by the 
Assistant Secretary for Support Services. 
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SEC. 36. Transfer of Functions. - The powers and functions of the Agriculture 
Credit Policy (ACPC) and the Quedan Rural Credit and Guarantee Corporation 
(Quedancor) are hereby transferred to and integrated with the BCS and rationalized in 
accordance with the provisions of this Act. 
CHAPTER 6 
RESEARCH, DEVELOPMENT AND EXTENSION SERVICES 
SEC. 37. Research, Development and fitension Services. - There is hereby 
created the Research, Development and Extension Services which shall be headed by an 
Undersecretary and shall consist of two (2) bureaus: 
1. Bureau of Agriculture and Fisheries Research and Development; and 
2. Bureau of Agriculture and Fisheries Extension 
SEC 38. Bureau of Agriculture and Fisheries Research and Development. - 
The Bureau of Agriculture Research is hereby renamed the Bureau of Agriculture and 
Fisheries Research and Development (BFARD) and shall be headed by a Director, a 
career officer. The functions of the Bureau of Fisheries and Aquatic Resources are hereby 
transferred to and integrated with the BAFRD and likewise rationalized in accordance 
with this Act. The BAFRD shall have the following functions: 
1. Serve as the Secretariat of the Agriculture and Fisheries Research and Development 
Council (AFRDC) to ensure that all agriculture and fisheries research is coordinated 
and undertaken for maximum utility to agriculture and fisheries: 
2. In coordination with appropriate government and private agencies, formulate the 
Agriculture and Fisheries National Research and Development System (AFNRDS) 
for approval by the AFRDC; 
3. Coordinate the research and development system of the Department which includes 
the National Research Centers (NRC), Regional Integrated Agriculture and Fisheries 
Research Centers (RIAFRC), Regional Integrated Agricultural Research Centers 
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(RIARC), Research Outreach Stations (ROS), and the Research and Development 
units of bureaus and attached agencies; 
4. Provide leadership in the formulation of the national research and development 
agenda, approve the releases of finds for all agriculture and fisheries Research and 
Development and, in coordination with the State Universities and Colleges (SUCs), 
Philippine Council for Agriculture Research and Rural Development (PCARRD) and 
Philippine Council for Aquatic and Marine Research and Development 
(PCAMARD), draft and regularly review the '%uidelines in Planning and 
Implementation of Agriculture and Fisheries Research" 
5. Tap farmers and fisherfolk, their organizations, and research institutions, especially 
state colleges and universities, in the conduct of research for use by the Department 
and its clientele, particularly farmers, fisherfolk, and other rural workers; 
6. Directly administer, and implement a monitoring and evaluation system for all research 
centers, institutes and research networks in agriculture and fisheries, specifically, but not 
limited to those identified in Chapter 7 of this Act and, in coordination with appropriate 
agencies, draft the program, parameters and guidelines for the evaluation of agricultural 
and fisheries research and development performance, activities and outputs incorporating 
the Output-Oriented Performance Standards (OOPS) and the standards and accreditation 
guidelines referred to in Section 72 (5) and the provisions of the Magna Cartafor 
Science and Technology Personnel: 
7. In coordination with the Agriculture and Fisheries Training Institute (AFTI) and other 
appropriate agencies, draft and regularly review the following: 
a. 'Policies on the Autonomy and Academic Freedom of Research and Development 
Institutions in Agriculture and Fisheries" in relation to the institutional, fiscal and 
administrative autonomy and exercise of academic freedom of professional staff and 
institutions including guidelines for the use and reinvestment of research and 
development extension income into research and development extension activities; 
b. "Harmonized Merit and Out-put Oriented Promotion System for Technical and 
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Extension" to harmonize performance standards, qualifications, salary scales and the 
collegial process of performance evaluation including the setting up of minimum 
qualification standards, compensation and incentive structure for directors and heads of 
research centers; 
c. 'Salary and Fringe Benefit System for Technical and Scientific Personnel Involved in 
Agriculture and Fisheries Research and Development Extension" with the aim of 
providing a competitive edge in attracting and retaining in the research and development 
extension system the brightest and most productive technical and science personnel; 
8. Coordinate with privately owned-and funded research centers, institutes, and networks; 
9. Develop an agriculture and fisheries research and development information system 
linked to the National Information Network (NIN); 
10. Manage the research and development fund of the Department based on the 
guidelines approved by AFRDC; and 
11, Perform such other functions as may be provided by law or assigned to it by the 
Undersecretary for Research, Development and Extension. 
SEC. 39. Bureau of Agriculture and Fisheries Extension. - There shall be a 
Bureau of Agriculture and Fisheries Extension @AFEx) which shall be headed by a 
Director, a career officer. The BAFEx shall administer the following offices: 
1. Agriculture and Fisheries Training Institute; 
2. Technology Tracking Office; and 
3. Extension and Marketing Communication. 
SEC. 40. AgrZculture and Fisheries Training Institute - The Agriculture 
Training Institute shall be renamed as the Agriculture and Fisheries Training Institute 
(AFTI) and its functions rationalized in accordance with the provisions of this Act. Other 
offices and units of the department involved in extension services in agriculture and 
fisheries shall be transferred and integrated with the AFTI. 
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The AFT1 shall be headed by the Assistant Director for Training and shall have 
the following functions: 
1. Serve as the Secretariat for extension and training in agriculture and fisheries of the 
AFRDEC; 
2. Advise the Department in the management of financial and logistical support for 
extension based on principles approved by the AFRDEC; 
3. In coordination with appropriate government and private agencies, formulate the 
Agriculture and Fisheries National Extension System (AFNES) in harmony with the 
Agriculture and Fisheries National Research and Development System (AFNaRDS) for 
approval by the AFRDEC; 
4. Coordinate with farmers and fisherfolk organizations and with appropriate government 
and private agencies in order to determine priority areas for training and extension and in 
gathering information related to agriculture and fisheries; 
5. Provide leadership in the formulation of the national agriculture and fisheries extension 
agenda and the corresponding budget; 
6. Directly administer and implement a monitoring and evaluation system for the 
AFNES; 
7. Prepare an integrated training plan for publicly-funded training in agriculture and 
fisheries for review by the AFRDEC and, in consultation with representatives of the 
institutions in the AFNES, shall promulgate the “Guidelines for the Planning and 
Implementation of Agriculture and Fisheries Exdension” that shall provide guidelines on 
multidisciplinary extension work and its linkages to research and development , and 
strategies for increasing the participation of the clientele and the industry in the planning 
and in the monitoring and evaluation of extension programs; 
8. Set up a certification system for vocational and technical training in agriculture and 
fisheries in collaboration with the Technical Education and Skills Development Authority 
(TESDA); 
9. Develop and administer a national human resources development program for short- 
term and degree and non-degree training for local government units extension personnel 
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in all areas related to agriculture and fisheries which include production, processing, 
marketing, use of appropriate technology, networking, product standards, credit facilities 
and entrepreneurship; 
10. In consultation with the Civil Service Commission (CSC), Department of Interior 
and Local Government and the local government units, formulate a national merit and 
output-oriented promotion system governing all extension personnel in the national and 
local levels; 
11. Develop an agriculture and fisheries extension infonnation and communication 
system linked with the National Information Network and maintain a computerized 
database on the extension force, covering all agriculture and fisheries extension personnel 
of local government units, the Department and its attached agencies, bureaus and other 
government and private agencies; 
12. Provide technical assistance to local government units in the implementation of 
extension services in agricultural and fisheries development plans and mobilize technical 
resources from all sources to assist local government units in solving specific problems 
related with extension services in agriculture and fisheries; 
13. Undertake relevant special studies related to training and extension services in 
agriculture and fisheries; 
14. Recommend specific policies and procedures related to training and extension in 
agriculture and fisheries; 
15. Provide an integrated and comprehensive multi-media support on extension and 
training services for the national research and development program; 
16. Perform such other functions as may be provided by law or assigned to it by the 
Bureau Director of the BAFEx. 
SEC. 41. Technology Tracking OfJce. - There shall be a Technology Tracking 
Office (TTO) which shall be headed by an Assistant Director. The TTO shall establish a 
technology tracking system in order to monitor periodically the extent and level of 
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technology applications in major agriculture and fishery commodities. 
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SEC. 42. Extension and Marketing Communication Office. - There shall be an 
Extension and Marketing Communication Office (EMCO) which shall be headed by an 
Assistant Director. The EMCO shall have the following functions: 
1. 
Provide an integrated and comprehensive multi-media support on extension and 
training services for the national research and research extension program in agriculture 
and fisheries; 
2. Develop information materials concerning agriculture and fisheries; 
3. Coordinate with government and private agencies for the collection of data related to 
fisheries and agriculture; and 
4. Perform such other functions assigned by the Secretiuy. 
CHAPTER 7 
RESEARCH AND DEVELOPMENT CENTERS, STATIONS, OUTREACH AND 
NETWORK 
SEC. 43. National Commodity Research Centers. - The National Commodity 
Research Centers (NCRC) which are government agencies involved in agriculture and 
fisheries research and development shall be under the direct administration andor 
supervision of the Bureau of Agriculture and Fisheries Research and Development 
(BAFRD) in accordance with their respective funding agreements or relationship with the 
Department and consistent with the national research and development agenda as 
formulated by the Agriculture and Fisheries Research Development and Extension 
Council (AFRDEC). 
SEC. 44. Functions of National Commodity Research Centers. - The National 
Commodity Research Centers (NCRC), under the guidance of the Bureau of Agriculture 
and Fisheries Research and Development (BAFRD) and the Bureau of Agriculture and 
Fisheries Extension (BAFEx) shall have the following functions: 
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1, Provide national leadership in the planning and coordination of the implementation, 
monitoring and evaluation of research and development extension programs; 
2. Undertake midstream and downstream applied research in the region, and 
3. Develop and maintain a network of provincial collaborators in undertaking the regional 
research and development extension programs. 
SEC. 45. Rationalized Offices. - The following offices shall he primarily 
engaged in research and development extension and rationalized as National Commodity 
Centers in accordance with the provisions of this Act: Fiber Development Authority, 
National Crop Protection Center, National Fisheries Development Institute, Bureau of 
Post-Harvest Research and Extension, National Tobacco Administration, Philippine 
Carabao Center, Philippine Coconut Authority, Philippine Cotton Corporation, Philippine 
Rice Research Institute, and the Sugar Regulatory Ad ministration. 
Other agencies, offices, units or sections of agencies engaged in agriculture and 
fisheries research and development shall be integrated, whenever appropriate with the 
above National Commodity Research Centers (NCRC) or shall be transformed into 
separate NCRC as may he determined hy the Agriculture and Fisheries Research and 
Development Extension Council (AFmEC) 
The rationalized offices under this section including international research entities 
engaged in agriculture and/or fisheries research and development and extension such as 
the South East Asian Fisheries Development and Extension Council (SEAFDEC) shall 
form part of the Agriculture .and Fisheries National Research and Development System 
(AFNaRDS) or Agriculture and Fisheries National Extension System (AFNES) in 
accordance with the provisions of this Act. 
SEC. 46. State Universities and Colleges as National Multi-Media CommodiQ 
Research Centers, Regional Research Stations or Cooperating Stations. - Selected state 
universities and colleges shall he included under the National Agriculture and Resources 
Research and Development Network (NARRDN) and the National Aquatic and 
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Resources Research and Development System (NARRDS) as National Multi-Commodity 
Research Centers, (NMCRC), Regional Research Stations (RSS), or Cooperating Stations 
(CS), as determined by the AFRDEC. 
SEC. 47. National Multi-Commodi@ Research Centers. - National Multi- 
Commodity Research Centers are hereby defined as National Universities and Colleges 
of Agriculture and/or Fisheries (NUCAF) that are assigned national or zonal 
responsibilities on specific commodities by the Agriculture and Fisheries Research and 
Development Extension Council based on recommendations of the Bureau of Agriculture 
and Fisheries Research and Development in coordination with the Philippine Council for 
Agricultural Research and Rural Development and the Philippine Council for Aquatic 
and Marine Research and Development. 
SEC. 48. Functions of the National Multi-Commodig Research Centers. - 
National Multi-Commodity Research Centers, in relation to their assigned national, zonal 
or commodity responsibilities, shall have the following functions: 
1. Provide leadership in the planning, implementation, monitoring and evaluation of their 
research, development and extension programs; 
2. Undertake basic research; 
3. Undertake upstream applied research including strategic research; and 
4. Develop and maintain a network of national regional and provincial collaborators. 
SEC. 49. Functions of the Regional Integrated Agricultural Research Centers. 
- The Regional Integrated Agricultural Research Centers, in relation to their assigned 
commodities or fields, under the guidance of the National Commodity Research Centers 
and in close cooperation with the relevant National Universities and Colleges of 
Agriculture and Fisheries, Regional Field Units and Provincial Agriculturist shall have 
the following functions: 
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1. Provide leadership in the planning and coordination of the implementation, monitoring 
and evaluation of an integrated research, development and extension program within a 
farming systems approach in coordination with the regional training centers; 
2. Undertake midstream and downstream applied research in the region; and 
3. Develop and maintain a network of provincial collaborators in undertaking the regional 
research, development and extension programs. 
SEC. 50. Functions of the Regional Outreach Stations. - The Regional 
Outreach Stations, under the guidance of the Regional Integrated Agricultural Research 
Centers and in close collaboration with the Provincial Agriculturist and Philippine 
Institute of Agriculture and Fisheries, shall have the following functions: 
1. Serve as the satellite stations of the Regional Integrated Agricultural Research Centers 
and links between the regional and provincial research, development and extension 
programs; 
1. Undertake downstream applied research; 
2. Demonstrate new and appropriate technologies; 
3. Serve as an educational and training facility; and 
4. Propagate genetic materials. 
SEC. 51. Regional Research Stations. - The Regional Research Stations are 
hereby constituted to consist of National Universities and Colleges of Agriculture and 
Fisheries or Provincial Institutes of Agriculture and Fisheries that are assigned regional 
responsibilities on specific commodities by the Agriculture and Fisheries Research, 
Development and Extension Council as recommended by the Bureau of Agriculture and 
Fisheries Research and Development in coordination with the Philippine Council for 
Agricultural Research and Rural Development and the Philippine Council for Aquatic 
and Marine Research and Development. 
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SEC. 52. Functions of the Regional Research Stations. - The Regional 
Research Stations, under the technical guidance of the National Central Research Centers 
and in close cooperation with the Regional Integrated Agricultural Research Centers and 
the Provincial Agriculturists, shall, in relation to their assigned national, zonal, or 
commodity responsibilities, have the following functions: 
1, Provide regional leadership in the planning, implementation, monitoring and 
evaluation of the research, development and extension programs; 
2. Undertake midstream and downstream applied research in the region; and, 
3. Develop and maintain a network of provincial collaborators 
SEC. 53. Cooperating Stations. - The Cooperating Stations are hereby 
constituted to consist to National Universities and Colleges of Agriculture and Fisheries 
or Provincial Institutes of Agriculture and Fisheries that are assigned provincial 
responsibilities on specific commodities or areas by the Agriculture and Fisheries 
Research, Development, and Extension Council as recommended by the Bureau of 
Agriculture and Fisheries Research and Development in coordination with the Philippine 
Council for Agriculture Research and Rural Development and the Philippine Council for 
Aquatic and Marine Research and Development. 
SEC. 54. Functions of the Cooperating Stations. - The Cooperating Stations 
shall, under the guidance of the Regional Research Centers or the Regional Integrated 
Agricultural Research Centers and in close collaboration with the Research Outreach 
Stations and the Provincial Agriculturist, in relation to their assigned commodities, have 
the following functions: 
1. Serve as satellite stations of the Regional Integrated Agriculture Research Centers or 
the Regional Research Stations and link the regional and provincial research, 
development and extension programs; 
2. Undertake downstream applied research relevant to the province; 
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3. Demonstrate new and appropriate technologies in the province; and 
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CFIAPTER 8 
REGIONAL OPERATIONS 
SEC. 55. Regional Operations. - The Department shall establish, operate and 
maintain a Regional Office in each of the country’s administrative regions, each of which 
shall be headed by a Regional Executive Director. The Regional Executive Director shall 
be assisted by three (3) Technical Directors equivalent to the level of Assistant Regional 
Directors assigned to Marketing Assistance and Regulatory Services, Production Support 
Services, and Research, Development and Extension Services, respectively. 
SEC. 56. Functions of the Regional Offices. - The regional offices shall have the 
following functions: 
1. Implement and enforce in its area the laws and policies, plans, programs, projects, 
rules and regulations issued by the Department such as quarantine and food safety 
standards laws, rules and regulations; 
2. Implement and provide regulatory and support services and coordinate and/or exercise 
supervision over research, development and extension programs at the regional level; 
3. Provide technical and financial support to the local government units in terms of, but 
not limited to extension and training services, and in the implementation and 
management of agriculture and fisheries development programs; 
4. Monitor and evaluate the local government units compliance with nationally-mandated 
programs and standards relating to agriculture and fisheries; 
5. Coordinate with government and private agencies and offices; and 
6. Perform such other functions as may be provided by law or assigned by the 
Undersecretary for Operations; 
SEC. 57. Other Offices and Units in Regional Offices. - Other offices and units 
in the regional offices shall be rationalized and coordinated with the Administrative and 
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Finance Services, Information and Communication Staff, and Policy and Planning 
Service structure of the Office of the Secretary of the Department. 
CHAPTER 9 
THE NATIONAL AGRICULTURE AND FISHERIES MODERNIZATION 
comcIL 
SEC. 58. National Agriculture and Fisheries Council for Modernizntion. - 
There is hereby created a National Agriculture and Fisheries Council for Modernization 
(NAFCM), hereinafter referred to as the Council, a body attached to the Office of the 
Secretary, to promote a policy environment that will accelerate the development of a 
sustainable and globally competitive agriculture and fisheries industry. 
SEC. 59. Functions offhe Council. - The Council shall have the general powers 
and attributes of a corporation as set forth in the Corporation Law and the mandate to 
perform the following functions, powers and responsibilities: 
1. To formulate, implement, review and revise a medium and long-term comprehensive 
agriculture and fisheries modernization plan. Such plan shall be developed on the basis of 
the long-term agriculture and fisheries plans and programs developed by the Municipal, 
Provincial and Regional Agriculture and Fisheries Development Councils for 
Modernization to effect consistency of such plans with national development framework 
and policies; 
2. To ensure food security, alleviate poverty in the rural sector, promote sustainable 
growth, and develop internationally competitive agribusiness and fisheries ventures; 
3. Serve as the consultative and feedback mechanism which shall enable the farmers, 
fisherfolk and those involved in agriculture and fisheries at all levels of operations from 
the municipal up to the national level to be actively involved in the formulation of 
policies, plans, programs and activities; 
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4. Review and recommend for the approval of the Secretary reports for submission to the 
Congressional Oversight Committee on Agriculture and Fisheries Modernization created 
under Republic Act 8435; 
5. Formulate policies, plans and programs on food production, postharvest handling, 
storage, milling, distribution and credit support, including the coordination of its 
implementation among the various agencies and institutions of the government and the 
private sector; 
6. Ensure the best administration of market development programs for agricultural 
commodities and food products; 
7. Ensure an adequate flow of these products to consumers as well as a fair return to 
producers and prevent inefficient and wasteful methods of distribution; 
8. Foster the empowerment of agricultural producers into effective associations or 
corporations under their own control for greater unity of effort in marketing; 
9. Promote the establishment and financing of farm marketing systems of producer- 
owned and producer-controlled cooperative associations and other agencies; 
10. Set and review annually the govemment’s buffer grain stock requirements at the 
national and local levels and ensure that these requirements are achieved; 
1 1, Effect, with the Regional Agricultural Councils andor other government entities as 
implementing agents, the domestic procurement of the government’s buffer grain stock 
through purchases of warehouse receipts or queans of grain deposits in government, 
farmer-cooperatives and private warehouses andor by buying grain produce directly 
from farmer cooperatives; 
12. Cause the direct importation of rice and allocation of import quotas among private 
entities, especially certified and licensed farmer cooperatives; 
13. Promulgate the government’s stabilization price for grains to assure farmers with a 
reasonable mark-up on their production cost and participation in the profits that may be 
realized from the sale of the govemment’s buffer grain stock; 
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14. Reorient the country’s food production policies, plans and programs .in such a way 
that the thrust of increasing the productivity of farmers is not only in terms of yield per 
unit area but more so in aggregate income from farming enterprises; 
15. Promote and coordinate plans and programs of assistance to producers through input 
supplies, purchases and other operations, including loans in partnership with available 
financial sources or institutions; 
16. Institutionalize and actively promote the adoption ofsustainable agricultural practices 
at all farm levels so that steady production of various food commodities to cope with the 
demands of a growing population is achieved in a way that maintains the productivity of 
the soil and diminishes any adverse impact to the immediate environment; and 
17. Undertake other tasks and activities as may be necessary to ensure the attainment of 
efficient agricultural marketing systems and food security. 
SEC. 60. Composition of the Council. - The powers, functions and affairs of the 
Council shall be exercised and directed by a governing board to be chaired hy the 
Secretary with the Secretary of Agrarian Reform as Vice- Chairman; and with six (6) 
members from the government sector who shall sit for a term of three (3) years; and five 
representatives froin the private sector, who shall sit for a term of three years, without 
reappointment. The members from the government sector shall consist of the respective 
heads of the following agencies or offices: the National Economic and Development 
Authority; the Department of Environment and Natural Resources; the Department of 
Trade and Industry, the Department of Transportation and Communications, the 
Department of Interior and Local Government, and the Department of Public Works and 
Highways. 
Any of the government members may designate his permanent representative who 
shall serve in his place as member of the board: Provided, That such representative shall 
have a rank not lower than Undersecretary. The remaining five ( 5 )  members of the 
Council shall consist of representatives to be nominated by accredited non-government 
organizations and peoples’ organizations, and appointed by the President to represent the 
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manufacturers, and agri-based exporters. 
The governing board shall meet regularly at least every month on any date to be 
determined by the Chair: Provided, That the Chair may convene special meetings to 
discuss urgent matters needing immediate resolution. The Council members shall be 
entitled to aper diem for every meeting actually attended: Provided, That in no case shall 
per diems exceed the equivalent for more than four (4) meetings per month. It shall 
prescribe the rules and regulations to govern its deliberations and other official actions. 
SEC. 61. Organization and Stag- The management of the day-today operations 
of the Council shall be vested in an Executive Director who shall be appointed with the 
rank of an Undersecretary by the President of the Philippines. 
The Council shall set up the organizational structure, staffing pattern, 
qualification standards, compensation scale, functions and authorities of their officers and 
employees, pursuant to pertinent laws, rules and regulations being implemented by the 
Civil Service Commission and the Department of Budget and Management. 
SEC. 62. Committees. - Committees shall be organized within the Council to 
address the respective concerns of the following: 
1. National Agriculture and Fisheries Education System (NAFES); 
2. The marketing umbrella for agriculture and fisheries products; 
3. Agro-industrial Modernization Credit and Finance Program (AMCFM); and 
4. Agriculture and Fisheries National Research and Development System (AFNaRDS). 
A Technical Advisory Group composed of representatives from various agricultural and 
fisheries professions and the scientific community shall be created to serve all the 
technical needs of the committees. 
SEC. 63. The Consultative Network of National Agriculture and Fisheries 
Council for Modernization. - The following shall be established and organized to form 
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the consultative network of the National Agriculture and Fisheries Council for 
Modernization (NAFCM): 
1. The Regional Agriculture and Fisheries Council (RAFC); 
2. The Provincial Agriculture and Fisheries Council (PAFC); and 
3. The Municipal Agriculture and Fisheries Council (MAFC) 
SEC. 64. Structure of the Agriculture and Fisheries Councils. - The Agriculture 
and Fisheries Councils (AFC) shall have the following membership and organizational 
structure: 
1. At the regional level, the presiding officer shall be the Regonal Agriculture and 
Fisheries Council (RAFC) chairperson, with all Provincial and Fisheries Council 
chairpersons and all Provincial Agriculture Officers of the Department as members. The 
regional field units of the Department shall serve as the Secretariat. 
2. At the provincial level, the presiding officer shall be the Provincial Agriculture and 
Fisheries Council (PAFC) chairperson, to be elected from among the members who shall 
consist of all Municipal Agriculture and Fisheries Council Chairpersons and all 
Municipal Agriculture officers as members. The Provincial Agrarian Office shall serve as 
the Secretariat. 
3. At the municipal level, the presiding officer shall be the Municipal Council Chairman, 
to be elected from among the representatives of the following sectors: farmers’ 
organizations, fisherfolks’ organizations, non-government organizations, women, youth 
and agri-business groups. The Municipal Agrarian Office shall serve as the Secretariat. 
SEC. 65. Functions of the local AFCs. - The local AFCs shall have the 
following functions: 
1. Convene meetings to discuss relevant agriculture and fisheries issues for submission 
and recommendation to the National Agriculture and Fisheries Council for Modernization 
(NAFCM) in order to ensure food security; 
2. Review and assess agriculture and fisheries programs; 
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3. Represent the agriculture and fisheries sectors and participate actively in the Local 
Development Councils (LDCs); 
4. Assist the Department in the formulation of development plans for agriculture and 
fisheries; and 
5. .Perform such other functions as may be assigned to it by the Council to achieve its 
goals and objectives. 
SEC. 66. Transfer of Powers and Functions. - The powers and functions of the 
National Agricultural and Fisheries Council, the National Nutrition Council, and the 
Livestock Development Council are hereby transferred to and integrated with the 
National Agriculture and Fisheries Council for Modernization. 
CHAPTER 10 
THE AGRICULTURE AND FISHERIES RESEARCH DEVELOPMENT AND 
EXTENSION COUNCIL 
SEC. 67. The Agriculture and Fisheries Research Development and Extension 
Council. - There is hereby created the Agriculture and Fisheries Research Development 
and Extension Council (AFRDEC) which shall be attached to the Office of the Secretary. 
It shall be headed by the Secretary as Chairperson and the Director General as Vice- 
Chairperson. The Undersecretary for Research, Development and Extension Services of 
the Department shall serve as the Secretary of the Council. 
Each of the following departments, offices and agencies shall have a 
representative: Department of Agrarian Refonn, Department of Environment and Natural 
Resources, Department of Interior and Local Government, Department of Science and 
Technology, Department of Budget and Management, Commission on Higher Education 
and the University of the Philippines at Los Banos. The representatives shall be 
designated by their respective departments, offices and agencies and shall sit as members 
of the Council for a term of three (3) years. 
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The following organizations shall likewise have a representative in the Council 
duly designated by their respective governing boards: League of City Mayors, the League 
of Municipal Mayors and the League of Governors. Each of the following sectors shall 
have a representative who shall be 2 appointed by the President upon the nomination of 
non-government organizations and people’s organizations duly accredited by the 
Department, and who shall sit as members of the Council for a tenn of three (3) years 
with no reappointment: rice farmers, corn and other grains farmers, plantation crop 
farmers, livestock raisers, poultry raisers, municipal fishers, commercial fishers, 
aquaculture enterprises, food processing industry, manufacturers of agricultural and 
fisheries machineries, the agriculture and fisheries marketing sector, the science and 
technology community, and non-government organizations concerned with the 
environment. 
SEC. 68. Functions of the Council. - The Council shall have the following 
functions: 
1. Integrate all the research, development and extension functions and activities in 
agriculture and fisheries by enhancing, supporting, coordinating and consolidating the 
Agriculture and Fisheries National Research and Development System (AFNaRDS), and 
in close and effective linkage with the Agriculture and Fisheries National Extension 
System (AFNES); 
2. Prepare and oversee the implementation of a comprehensive research, development 
and extension program in agriculture and fisheries including the review and 
rationalization of the roles, functions and organization of various research, development 
and extension centers, institutes, and network such as the National Agriculture and 
Resources Research and Development Network (NARRDN) and the National Aquatic 
Resources and Development System (NARRDS) including the Philippine Council for 
Agriculture and Resources, Research and Development (PCARRD) and the Philippine 
Council for Aquatic and Marine Research and Development (PCAMRD); 
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3. Consolidate, review and approve the national research development and extension 
agenda, and the plans and programs developed by the Agriculture and Fisheries National 
Research and Development System (AFNaRDS) and the Agriculture and Fisheries 
National Extension System (AFNES); 
4. Set policies pertaining to research, development and extension in agriculture and 
fisheries which will ensure food security, alleviate poverty, promote people 
empowerment, agricultural and fisheries productivity and development, and promote 
international competitiveness in the agriculture and fisheries sectors; 
5. Approve policies for the operationalization and continued strengthening of the 
institutional capabilities, efficiency, effectiveness and integration of the Agriculture and 
Fisheries National Research and Development System (AFNARDS) and the Agriculture 
and Fisheries National Extension System (AFNES), including the setting up of an output- 
oriented system of monitoring and evaluating research, development and extension in 
agriculture and fisheries; 
6. Create committees, technical working groups, and commodity teams to facilitate the 
accomplishment of its objectives; 
7. Set policies on relations and exchange between Philippine and international institutions 
on agriculture and fisheries research, development and extension, and approve the 
allocation of funds from national as well as foreign sources for national research, 
development and extension programs. 
8. Formulate and implement a national program to develop and maintain a critical mass 
of scientists involved in agriculture and fisheries research by providing adequate and up- 
to-date science laboratory facilities and equipment, promoting a scientific environment 
and culture conducive for scientific research and creativity, and providing compensation 
rates and other benefits comparable with international standards; and 
9. Call on the personnel of any of the services and offices of the Department and other 
government agencies for technical support and assistance. 
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SEC. 69. The Secretariat. - The Bureau of Agriculture and Fisheries Research 
and Development (BAFRD) shall serve as the Secretariat of the Council for research and 
development while the Agriculture and Fisheries Training Institute (AFTI) shall serve as 
the Secretariat for Extension and Training. 
The Undersecretary of the Department for Research, Development and Extension shall 
head both Secretariats that shall assist the Council in: 
1. Formulating and setting the priorities for the national research, development and 
extension agenda for agriculture and fisheries; 
2. Implementing a system for monitoring and evaluating research, development and 
extension in agriculture and fisheries; 
3. Preparing details of the budget for the national agriculture and fisheries research, 
development and extension activities; and 
4. Performing such other functions as may be assigned to it by the Council to achieve its 
goals and objectives. 
SEC. IO. Agriculture and Fisheries National Research and Development 
System) Subsystem. - The Agriculture and Fisheries National Research and 
Development System (AFNaRDS) shall be composed of two (2) subsystems: the 
Agriculture Research and Development subsystem and the Fisheries Research and 
Development subsystem. 
1. Agriculture Research and Development Subsystem - The agriculture research and 
development subsystem shall be composed of the following: 
a. the agriculture research and development system of the Department; 
b. the national agriculture and resources research and development network including 
PCARRD; 
c. the Bureau of Agrarian Reform Beneficiaries Development of the Department of 
Agrarian Reform; 
d. appropriate units and offices of other government agencies with functions relating 
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e. the Commission on Higher Education; 
f. selected State Universities and Colleges involved in fisheries research; and 
g. private agencies and institutions involved in agriculture research 
2. Fisheries Research and Development Subsystem shall be composed of the following: 
a. the fisheries research and development system of the Department; 
b. the National Aquatic Resources Research and Development System including the 
Philippine Council for Aquatic and Marine Research and Development (PCAMRD); 
c. appropriate units and offices of other government agencies with functions relating 
to, fisheries research; 
d. the Commission on Higher Education; 
e. selected State Universities and Colleges involved in fisheries research, and 
f. private agencies and institutions involved in fisheries research. 
SEC. 71. Role of the Philippine Council for Agricultural Research and Rural 
Development and the Philippine Council for Aquatic and Marine Research and 
Development. - The Philippine Council for Agricultural Research and Rural 
Development (PCARRD) and the Philippine Council for Aquatic and Marine Research 
and Development (PCMARD) under the Agriculture and Fisheries Research 
Development and Extension Council (AFRDEC), shall perform the following functions: 
1, Collaborate with the Bureau of Agriculture and Fisheries Research and Development 
in the screening of proposals and in the monitoring of ongoing agriculture and fisheries 
research and development in the country; 
2. Develop methodologies and systems for effective research, development and extension 
planning in agriculture and fisheries emphasizing the quality and intensity of 
participation on fanners, fisherfolk and the industry in setting the research, development 
and extension agenda of the Department and related allocation of resources; 
3. Develop and coordinate the implementation of output-oriented performance standards 
for staff, institutions and programs in agriculture and fisheries research and development; 
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4. Set-up an efficient and effective computerized system of monitoring and evaluation of 
research, development and extension staff and institutions, including databases required 
for the assessment of research excellence, performance and capacity, such as the 
“Database of Scient@ and Technical Personnel, ” Database for research , development 
and extension infrastructure, and “Database of Research, Development and Extension 
Investment ’‘; 
5. Develop and administer a career development program and a unified merit promotion 
system for scientific and technical personnel in agriculture and fisheries research, 
development and extension; 
6. Develop and administer a career development program and a unified merit promotion 
system for scientific and technical personnel in agriculture and fisheries research, 
development and extension; 
7. Develop and administer an incentive system to support high quality scientific journals 
in agriculture and fisheries; 
8. Develop a human resource maintenance system for providing incentives and benefits 
to technical and scientific personnel in agriculture and fisheries aimed at ensuring that 
agriculture and fisheries institutions gain and maintain a competitive edge in attracting 
and maintaining their staff, and 
9. Provide technical assistance in the improvement of institutions gain and maintain a 
competitive edge in attracting and maintaining their staff 
SEC. 72. Integrated Council. - The Philippine Council for Agriculture and Rural 
Development (PCARRD) and the Philippine Council for Aquatic and Marine Research 
and Development (PCMARD) shall be transferred and integrated with the Agriculture 
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CHAPTER 11 
GENERAL PROVISIONS 
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SEC. 73. Other Agencies, Ofpees and Units. - Other agencies, offices and units 
engaged in agriculture and fisheries not otherwise specifically mentioned in this Act shall 
be integrated with the appropriate bureaus, councils and offices created andor 
rationalized in accordance with provisions of this Act. The National Stud Farm shall be 
integrated with the Philippine Racing Commission. 
SEC. 74. Security of Tenure. - In the implementation of this Act, the Department 
shall ensure that there shall be no undue loss of employment of personnel' as a result of 
the rationalization authorized herein. In the event that the separation of personnel 
becomes unavoidable because of the integration, transfer, or abolition of their office or 
positions, or the reduction of the functions of the office, impact mitigation measures shall 
be adopted, such as redeployment of separated employees of one unit of the Department 
to other appropriate units, agencies, entities of the Department. 
SEC. 75. Transitory Provision. - In accomplishing the acts of rationalization 
herein prescribed, the following transitory provisions shall be complied with 
1. The transfer or integration of a government unit or office shall include the functions, 
appropriations, funds, records, equipment, facilities, change in action, rights, other assets, 
and liabilities, if any, of the transferred or integrated unit or office as well as the 
personnel thereof, as may be necessary who shall in hold-over capacity continue to 
perform their respective duties and responsibilities, and receive the corresponding 
salaries and benefits unless separated from government due to causes other than the 
implementation of the provisions, of this Act. 
2. The integrated units or offices shall be deemed abolish. Personnel of the transferred or 
integrated units whose positions are not included or who are no longer qualified in the 
Department's new position structure and staffing pattern shall be deemed separated fiom 
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service and shall be entitled to the benefits provided for in this Act and such other 
applicable laws; 
3. The transfer of function which result in the abolition of the unit or office that has 
exercised them shall include the appropriations, fund, records, equipment, facilities, 
change in action, rights, other assets, and personnel as may be necessary to the proper 
discharge of the transferred functions. The remaining appropriations for funds of the 
abolished units or offices shall revert to the General Fund and its remaining assets, if any, 
shall be allocated to such appropriate units in the new organizational structure of the 
Department as determined by the Secretary or shall otherwise be disposed in accordance 
with the Government Auditing Code and other pertinent laws, rules and regulations. 
4. In case of termination of functions which does not result in the abolition of the 
government unit which has performed such functions, the appropriations and funds 
intended to finance the discharge of such function shall revert to the General Fund, while 
the records, equipment, facilities, change in action, rights and other assets used in 
connection with the discharge of functions shall be allocated to the appropriate units as 
the Secretary shall determine or shall otherwise be disposed in accordance with the 
Government Auditing Code and other pertinent laws, rules and regulations. 
The liabilities, if any, that may have been incurred in connection with the 
discharge, of such functions shall likewise be treated in accordance with the Government 
Auditing Code and other pertinent laws, rules and regulations. The personnel who may 
have performed such functions, whose positions are not included or who may no longer 
be qualified in the new organization structure and staffing pattern shall be deemed 
separated from the service and shall be entitled to the benefits provided for in this Act 
and other pertinent laws. 
SEC. 76. New Structure and Pattern. - Upon approval of this Act, the offices 
and employees of the Department shall, in a hold-over capacity, continue to perform their 
respective duties and responsibilities and receive the corresponding salaries and benefits 
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unless in the meantime, they are separated from the service from causes other than the 
implementation of the provisions of this Act. 
The new position structure and staffing pattern of the Department shall be 
approved and prescribed by the Secretary within one hundred twenty (120) days from the 
approval of this Act, and the authorized positions thereunder shall be filled with .regular 
appointments by him or by the President, as the case may be. Those incumbents whose 
positions are not included therein or those who are no longer qualified and re-appointed 
shall be deemed separated from the service and shall be entitled to the benefits provided 
for in this Act and other pertinent laws. 
SEC. 77. Separation Benefits. - Career and civil service employees of the 
Department separated from the service not for cause but as a result of the rationalization 
effected pursuant to this Act, shall be entitled to appropriate separation pay and to 
retirement benefits accruing to them under the laws of general application in force at the 
time of their separation. 
SEC. 78. Time Frame. - The Secretary shall complete the implementation of this 
Act within six (6) months from the approval thereof and shall, within two (2) months 
thereafter, submit to the President of the Philippines the report of completion of this 
rationalization. 
SEC. 79. Submission of Report to Congress. - Within four (4) months after the 
completion of the rationalization of the Department, the President shall submit to 
Congress a report on the result of the rationalization. 
SEC. 80. Appropriations. - Upon the effectivity of this Act, the 'rationalized 
councils, bureaus, agencies, and offices shall retain their present appropriations until a 
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the Department of Budget and Management six (6) months after the effectivity of this 
Act. 
SEC. 81. Repealing Clause. - All laws, decrees, executive issuance, rules and 
regulations inconsistent with this Act are hereby repealed or modified accordingly. 
SEC. 82. Separability Clause. - The provisions of this Act are hereby declared to 
be separable, and in the event one or more of such provisions are held unconstitutional, 
the validity of the other provisions shall not be affected 26 thereby. 
SEC. 83. Effectivity. - This Act shall take effect thirty (30) days from the date of 
its publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved, 
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