FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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SENATE 
S.B. 2450 
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Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
The country is now in food crisis. The Philippine rice production of 15.33 MMT 
cannot meet the required consumption of our growing population at 18.77 MMT, an 
annual deficit of 3.44 MMT (2006 BAS data). With the steadily increasing population of 
the country, the national rice consumption shall reach to 16 MMT of milled rice or 24.61 
MMT of palay by 2025 (BAS data). 
In view of this, there is now an urgent need to increase our rice production, which 
in turn will reduce or end the government's rice importation. 
Although this can be 
achieved by increasing the irrigated areas, application of good seeds and adequate 
fertilization, agricultural mechanization cannot be ignored. 
With the use of adequate, appropriate and efficient agricultural mechanization 
practices, rice production will be greatly increased as: 1) the existing two cropping 
seasons per year in irrigated areas shall be made to three; 2) better plant growth and 
yield per unit area shall be attained due to precise planting density, good tillage 
operation and efficient fertilizer application. Likewise, the 15% crop production losses 
shall be reduced or eliminated. 
This holds true to all other types of crops, livestock and fisheries. It can also help 
accelerate employment and livelihood generation, increase product value adding and 
diversify farm products. Significantly, the 2.0 million hectares of coconut lands which 
had remained idle and monocropped for so long will become productive through 
mechanization. 
It is sad to note that the present level of agricultural and fisheries mechanization 
in the Philippines - meaning, the available human, animal and mechanical power, is still 
very low at about 1.68 hp/ha. Although this has increased significantly from 0.36 hp/ha 
in the 1980s to 1.68 hp/ha in 1994, the Philippines had barely acquired the much-
needed agricultural machineries from 1991 up to 2000. The country is second to last-
placer Myanmar for agricultural tractors, and last on harvesters/threshers with the other 
rice-producing countries in Asia. The table below is shown: 
Countries 
Aqricultural Tractors (No.) 
HarvestersIThreshers (No.) 
Japan 
2,028,000 
1,042,000 
India 
1,525,000 
4,000 
China 
975,000 
263,000 
Thailand 
220,000 
70,000 
South Korea 
192,000 
87,000 
Vietnam 
163,000 
163,000 
Indonesia 
70,000 
330,000 


Taiwan 
14,000 
10,000 
Philippines 
12,00P 
1,000 
Myanmar 
11,000 
12,000 
Source: PhilSCAT Study and PCAARD Report, 2003). 
This mechanization level is far below with other Asian countries like the Republic 
of Korea with about 4.11 hp/ha and the People's Republic of China with 3.88 hp/ha. 
Only about 2% of the agricultural areas are mechanized, and there are about 102 
tractors and 6 harvesters/threshers per 1,000 hectares (Ang Krisis sa Pagkain, Ibon 
Facts and Figures, April-May 2008). 
Other problems include the inadequacy of after-sales service, supply of 
substandard agricultural and fishery machinery particularly in the government 
procurement program and the sporadic, fragmented and disorganized implementation of 
agricultural and fishery mechanization. Towards this end, there must be in place a 
system of accreditation and classification of agricultural and fishery machinery suppliers 
and manufacturers, state-of-the-art testing and evaluation, continued standards of 
development and enforcement and responsive and adequate support services. 
To ensure rational planning, distribution and investment of agricultural and 
fishery machinery, there is also a need for an updated and reliable database and 
information system. The development and implementation of a nationwide registration 
system on agricultural and fishery machinery is a possible solution to this concern. 
Parallel to the above requisites, it is important to guarantee that the various 
mechanization development activities of the key players in the agriculture sector are put 
into a comprehensive and integrated national effort to effectively address urgent as well 
as emerging agricultural and food needs. 
In view of the foregoing, a law should be passed to consolidate, integrate and 
strengthen all existing poliCies and programs insofar as agricultural and fishery 
mechanization, known as "Agricultural and Fisheries Mechanization Law." 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. 2450 
Introduced by Senator Manny Villar 
AN ACT 
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PROMOTING THE AGRICULTURAL AND FISHERIES MECHANIZATION 
DEVELOPMENT IN THE COUNTRY 
Be it enacted by the Senate and" House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. - This Act shall be known as the Agricultural and Fisheries 
Mechanization (AFMech) Law of 2010. 
ARTICLE I 
DECLARATION OF POLICY, 
DEFINITION OF TERMS AND COVERAGE 
SEC. 2. Declaration of Policy. - It shall be the policy of the State to: 
Promote the development and adoption of modern, appropriate and cost-
effective and environmentally safe agricultural and fisheries machinery and equipment 
to enhance farm productivity and efficiency in order to achieve food security and safety; 
Provide a conducive environment to the local manufacturing of engines, 
machinery and equipment for agricultural and fisheries production, processing and 
marketing 
strengthen 
the 
regulatory activities through 
the 
development and 
enforcement of machinery and machine performance standards, regular testing and 
evaluation, registration and the accreditation and classification of suppliers and 
manufacturers to ensure compliance to prescribed quality standards of locally 
manufactured and imported agricultural and fisheries machinery and equipment; 
Strengthen support services like credit facilities, research, training and extension 
programs, rural infrastructures and marketing services; 
Unify, rationalize and strengthen the implementation, coordination activities and 
mechanisms on agricultural and fishery mechanization programs and projects; and 
Deliver integrated support services to farmers, fishermen and other stakeholders, 
and assist them to be able to viably operate and manage their agricultural and fisheries 
machinery projects. 
SEC. 3. Definition of Terms. -
Agricultural and Fisheries Machinery and Equipment - refers to machinery and 
equipment for the production, harvesting, processing, storage, manufacture, preserving, 
transporting and distribution of agri,?ultural and fishery products. It includes but is not 


limited to tractor and their attachments, power tillers, seeders, transplanters, windmill, 
slaughtering equipment, harvesting machines, crop protection and maintenance 
equipment, irrigation equipment and accessories, greenhouses and other thermal 
conditioning 
equipment, 
livestock 
equipment, 
fishery 
equipment, 
slaughtering 
equipment, meat/fishery and crop processing equipment, post harvest machines such 
as milling machines, dryer, threshers, strippers, agricultural transport machinery and 
storage facilities including cold storage, reefer vans, slaughter houses and fishing 
vessels. 
Agricultural 
and 
Fisheries Mechanization -
is the development, 
adoption, 
manufacture and application of appropriate, location-specific and cost-effective 
agricultural and fishery technology using human, animal, mechanical, electrical and 
other 
non-conventional 
sources 
of 
energy 
for 
agricultural 
production 
and 
postharvest/post production operations consistent with agronomic conditions and for 
efficient and economic farm and fishery management towards modernization of 
agriculture and fisheries. 
Agro-Industrial Processing - shall include local activity or series of activities to 
maintain or raise the quality or change the form or characteristics of agricultural, fishery 
and forestry products. It also includes cleaning, sorting, grading, mixing, milling, 
canning, 
dressing, slaughtering, freezing, 
pasteurizing, conditioning, packaging, 
repacking and transporting. 
Department - refers to the Department of Agriculture 
Secretary- refers to the Secretary of Agriculture 
BOAE- Board of Agricultural Engineering of the Professional Regulation Commission 
DOLE- Department of Labor and Employment 
DOST-Department of Science and Technology 
DTI- Department of Trade and Industry 
TESDA- Technical Education and Skills Development Authority 
CHED- Commission on Higher Education 
• 
AMTEC- Agricultural Machinery Testing and Evaluation Center, University of the 
Philippines, Los Banos 
SEC. 4. Scope and Application. - The provisions of this Act shall apply to the 
research, 
development 
and 
extension, 
promotion, 
distribution, 
supply 
and 
manufacturing, regulation, use, operation and maintenance of agricultural and fisheries 
machinery and equipment. 
ARTICLE II 
RESEARCH, EXTENSION AND HUMAN RESOURCE DEVELOPMENT 
SEC. 5. Unified National R&D and Extension Agenda 
a) A unified National Agricultural and Fisheries Mechanization R&D and 
Extension (ROE) Agenda shall be formulated and implemented by the 
Department and shall integrate all agricultural and fisheries mechanization 
R&D and extension programs and projects of all concerned national 
government agencies, local government units, state colleges and 
universities, shall be geared towards job generation, address market and 
2 


industry demands and 
help accelerate agricultural 
and 
fisheries 
modemization in the countryside. 
b) The National Agricultural and Fisheries Mechanization RDE Agenda shall 
include but shall not be limited to the following: 
Development, pilot testing and commercialization of appropriate, location 
specific and cost-effective agricultural and fisheries machinery and 
equipment in support to land consolidation and machinery pooling; 
Local manufacture of agricultural engines and equipment; 
Development and utilization of renewable energy resources such as bio-
fuels; 
• 
Development of efficient production and postproduction mechanization 
systems; 
Development of technical standards and testing procedures for quality 
agricultural machinery and components; 
Training of farmers, fishermen, 
manufacturers, extension workers, 
agricultural engineers, technicians and operators engaged 
in the 
agricultural and fisheries machinery; 
Promotion of technologies through agricultural and industrial extension 
activities and techno-demo centers; 
Development of prototype and fabrication of agricultural machinery and 
equipment; and 
Development and conduct of commercialization strategies involving all 
sectors representing the demand and supply sides of agricultural and 
fisheries mechanization technologies. 
SEC. 6. Agri-Fisheries Mechanization ROE Network. - An Agricultural and 
Fisheries Mechanization Research, Development and Extension (RDE) network is 
hereby organized, composed of research and education institutions, Local Government 
Units, nongovernment agencies and the recognized associations of agricultural and 
fishery machinery manufacturers and distributors, agricultural engineers and farmers 
and fishermen organizations. 
SEC. 7. Agri-Fisheries Machinery and Equipment Pools and Service 
Centers.-
The Department of Agriculture and the Local Government Units in 
partnership with the private sector shall establish Agricultural and Fishery Machinery 
Pools and Service Centers Strategic Agricultural and Fishery Development Zones 
(SAFDZs), at least one in each municipality and/or barangay if applicable and feasible 
so as to accelerate agricultural and fishery modernization in the countryside; Provided 
fiurther that these shall form part of the major basic services of the Local Government 
Units in the barangays, municipal/city and provincial levels, in addition to the basic 
services mandated under the Local Government Code . 
• 
SEC. 8. Agricultural and Fisheries Machinery Information Network - The 
Agricultural Machinery Information Network (AgMachIN) of the Department and the 
DOST shall be strengthened to serve as a network of information system and data bank 
on agricultural and fisheries machinery and equipment, and a facility for the on-line 
registration of agricultural and fishery machinery. 
3 


SEC. 9. Skills Certification of Agricultural Machinery Technicians and 
Operators. - The TESDA in collaboration with the Department, BO&, NAMDAC and the 
national associations of agricultural engineers and agricultural machinery manufacturers 
and distributors shall undertake skills certification and accreditation systems for 
agricultural and fishery machinery operators and technicians. 
SEC. 10. Research Grants. -
To enhance research and technological 
development on agricultural and fishery mechanization, the government through the 
Department, DOST and CHED shall provide research grants to strategic research 
institutions including concerned State Colleges and Universities to undertake needs 
oriented research as well as institutional development and upgrading of laboratory 
facilities and equipment. 
SEC. 11. Training and Scholarship Program. - The Department in partnership 
with the State Colleges and Universities and the private sector shall train the agricultural 
extension workers of the Local Government Units who in turn shall train the farmers and 
fishermen on agricultural and fishery mechanization technologies and practices. The 
DOLE and TESDA shall be responsible in the training of agricultural and fishery 
machinery technicians and operators. Scholarships for graduate and undergraduate 
degree on agricultural engineering and trade/vocational courses on agricultural and 
fishery mechanization shall be given priority by the Department, CHED and DOST. 
SEC. 12. Manpower Complement. - All agricultural and fishery machinery 
pools, and service centers including sales and distribution outlets and manufacturing 
establishments either public or private shall have the required manpower complement of 
agricultural engineers and skilled technicians and operators in accordance with the 
guidelines and standards to be adopted and promulgated by the BOAE and DOLE to 
ensure efficient operation and maintenance and good management practices. 
ARTICLE III 
LOCAL MANUFACTURE, SUPPLY AND 
AFTER-SALES SERVICE 
SEC. 13. Local Manufacturing. - Production of locally made engines and other 
machinery for agricultural and fisheries purposes shall be promoted and encouraged by 
the Department in partnership with Metal Working Industry Association of the 
Philippines (MIAP) and through joint venture agreement. For this purpose, the 
Department in partnership with the recognized national organization of agricultural 
machinery manufacturers and distributors, agricultural engineers and the Department of 
Science and Technology shall undertake the feasibility study and R&D for the local 
manufacture of agricultural engines/prime mover, and other agricultural machinery and 
equipment. 
SEC. 14. Exemption from Import Duties.- To support the local agricultural 
manufacturing industry, the latter is hereby exempted from the payment of import duties 
arising from importation of raw materials and components, engine and mechanical parts 
required for their manufacture and fabrication of agricultural and fisheries machinery 
and equipment. 
SEC. 15. Classification and Accreditation of Manufacturers, Importers, 
Suppliers, Distributors and Dealers. - Agricultural and fisheries manufacturers, 
importers and suppliers, distributors and dealers shall be classified into small, medium 
and large, and shall be encouraged to have their manufacturing/service facility build-up; 
Provided that agricultural and fisheries machinery manufacturers, importers, suppliers, 
distributors and dealers shall be classified and accredited based on their organizational 
4 


strengths and track records, area of operation, marketing and distribution network, after 
sales service and manufacturing capabilities; 
SEC. 16. Supply of Agricultural and Fisheries Machinery in Government 
Procurement Program. - Only manufacturers, importers, suppliers, distributors and 
dealers accredited by NAMDAC shall be eligible to supply government procurement 
requirements on agricultural and fisheries machinery and equipment based on their 
classification rating; 
SEC. 17. After-Sales Service. - All agricultural and fisheries machinery 
manufacturers, importers, suppliers, distributors and dealers are required to provide 
after-sales service and warranty to their respective clients including insurance coverage 
for "wear and tear" during the warranty period which shall be monitored by the DA and 
NAMDAC. 
ARTICLE IV 
REGISTRATION, LICENSING AND STANDARDIZATION 
SEC. 18. Testing and Evaluation. - Agricultural and fisheries machinery and 
equipment to be sold in the market shall pass through testing, and evaluation by the 
AMTEC in accordance with the national policies and guidelines to be promulgated by 
the Secretary of Agriculture. Specifically, before it can be commercially sold, a model of 
the machine and any modification thereof should be tested by AMTEC and should pass 
prescribed quality and performance standards before it is manufactured and sold in the 
market. The regular testing and evaluation of machinery sold shall be undertaken every 
five years by AMTEC. 
SEC. 19. Registration of Agricultural and Fishery Machinery.-
All agricultural and fisheries machinery shall be registered in all Municipal and 
City Local Government Units through the Agricultural Engineering Unit of the 
City/Municipal Agriculture Offices. 
The registration information shall include the engine serial number, name and 
address of the owner, technical specifications, date of acquisition and acquisition value 
of the agricultural and fishery machinery being registered; 
The Provincial Agricultural Engineering Groups of the Local Government Units 
shall establish and maintain a provincial data on all agricultural and fishery machinery 
being registered, with the DA Regional Agricultural Engineering Division being 
responsible for the regional data and the PhMech for the national data using the 
facilities of the AgMachlN. 
The Department, in consultation with the private sector and LGUs, shall 
promulgate national guidelines and procedures in the registration of agricultural and 
fishery machinery by the LGUs including the collection of registration fees. The amount 
collected should be utilized to fund the operation of the agricultural and fishery 
mechanization service centers. 
SEC. 20. Standards Development and Enforcement .- The Department, in 
coordination with the DTI, DOST, BOAE and AMTEC, and in conSUltation with the 
accredited associations of farmers and fishermen, agricultural machinery manufacturers 
and distributors and agricultural engineers shall develop standards specifications and 
test procedures of agricultural and fishery machinery. These standards should be in 
conformity with the International Standards Organization (ISO) and be part of the 
existing Philippine Agricultural Engineering Standards. 
5 


Thereafter, the Department and LGUs shall enforce the Philippine Agricultural 
Engineering Standards on the manufacture, sale, distribution and procurement of 
agriculture and fisheries machinery and equipment, and in its accreditation system and 
registration for agricultural and fishery facilities and establishments. For this purpose, 
the Department through CAFEO shall promulgate guidelines and procedures to 
effectively enforce the standards. 
Likewise, the Department of Public Works and Highways shall enforce the 
Philippine Agricultural Engineering Standards in the design, construction, operation and 
maintenance of agricultural and fishery buildings and structures as part of the 
implementation of the National Building Code of the Philippines. 
ARTICLE V 
INSTITUTIONS 
SEC. 
21. Agricultural and Fisheries Mechanization Committee. - The 
existing Agricultural aid Fisheries Mechanization Committee (AFMeC) under the 
National Agricultural and Fishery Council (NAFC) is hereby strengthened and 
reorganized into Agricultural and Fishery Mechanization and Infrastructure Committee 
(AFMIC) to act as an advisory body to ensure the success of the programs and 
activities of the DA concerning agricultural mechanization and infrastructure. It is also 
tasked to serve as the conSUltative and feedback mechanism from the lowest possible 
level to the top decision makers and to assist in defining and formulating the goals and 
scope of the country's agriculture. and fishery mechanization policies, plans, and 
programs. To support its activities, the Agricultural and Fishery Mechanization Staff of 
NAFC is also hereby strengthened. 
SEC. 22. Strengthening the DA Agricultural Engineering Groups. - Pursuant 
to Section 46 of RA No. 8435, a Central Agricultural and Fishery Engineering Office 
(CAFEO) is hereby created under the Department of Agriculture to be headed by a 
Department Undersecretary. 
The CAFEO shall coordinate, oversee, integrate and 
monitor all agricultural and fishery infrastructure, mechanization and engineering 
programs and projects of the Department. Likewise, the Regional Agricultural 
Engineering Divisions of the Regional Field Units are hereby strengthened and 
institutionalized to carry out the field implementation of the agricultural and fishery 
mechanization and infrastructure programs. 
SEC. 
23. Institutionalization of the NAMDAC Board. - The National 
Agricultural and Fisheries Machinery Manufacturers, Importers, Distributors and Dealers 
Accreditation and Classification (NAMDAC) Board is hereby institutionalized to serve as 
the sole national accreditation and classifying body on agricultural and fisheries 
machinery and shall perform the following functions: 
a) 
Establishment of an updated and accurate data base on their sector; 
b) 
Formulate 
policies, 
guidelines 
and 
criteria 
for 
accreditation 
and 
classification on manufacturers of agricultural and fishery machinery; 
c) 
Encourage self regulation in the sector by delegating the task of 
accrediting 
and 
classifying 
manufacturers/dealers/distributors 
and 
approval of the quality and safety of their products to their respective 
associations; 
d) 
Advocate policies to regulate the importation and exportation of 
agricultural and fisheries machinery consistent with the GATT-WTO 
provision; and 
6 


e) 
Make certain that the manufacturers'/dealers' associations conduct regular 
inspection of agricultural and fisheries machinery fabrication plants to 
ensure compliance with accepted processes and products. 
SEC. 
24. Composition of NAMDAC. - NAMDAC shall be organized by the 
private sector which shall include representatives from the manufacturers, importers, 
suppliers and distributors of agricultural machinery and equipment. The heads of 
CAFEO, PhMech, AFMIC and AMTEC shall also be members of NAMDAC. The 
CAFEO shall serve as the secretariat of NAMDAC. 
SEC. 25. Role of BPRE- - The Bureau of Postharvest Research and Extension 
(BPRE) is hereby restructured into Philippine Institute for Postharvest Development and 
Mechanization (PhMech) to strengthen its existing research, extension and postharvest 
development services functions on postproduction and mechanization concerns. The 
BPRE shall coordinate, plan, execute agricultural and fishery mechanization and post-
harvest programs and projects of the Department. 
SEC. 
26. Agricultural Machinery Testing and Evaluation Center. - The 
existing Agricultural Machinery Testing and Evaluation Center (AMTEC) is hereby 
institutionalized as a Center under the College of Engineering and Ago-Industrial 
Technology (CEAT) of UPLB, and for purposes of functional coordination and 
integration, shall closely coordinate its activities with CAFEO and PhMech. 
'ARTICLE VI 
RESPONSIBILITIES OF THE LOCAL GOVERNMENT UNITS 
SEC. 
27. Implementation by the Local Government Units. - The Local 
Government Units, pursuant to the provisions of Republic Act No. 7160, otherwise 
known as the Local Government Code, shall undertake applied research, extension, 
dispersal, management and regulation of agricultural and fisheries machinery and 
equipment including the collection of fees in accordance with the national policies, 
procedures, guidelines and rules and regulations as promulgated by the Secretary of 
Agriculture. 
SEC. 28. Role of the Agricultural and Fishery Engineering Offices of the 
Local Government Units. - The Provincial, City and Municipal Agricultural Engineering 
Groups/Offices of the Local Government Units organized under Section 46 of RA 
8435, Executive Order No. 86, Series of 1999 are hereby strengthened and shall serve 
as the coordinating, planning, regulating and implementing body at the provincial, city 
and municipal levels on agricultl;lral and fishery infrastructure, engineering and 
mechanization projects. The Provincial, City and MuniCipal Agricultural Engineering 
Groups shall be headed by a Provincial, City and Municipal Agricultural Engineeds to be 
appointed by the concerned Local Chief Executive. 
In cases of provincial, city and municipal LGUs which do not have Agricultural 
Engineering Offices, the Department through the Regional Agricultural Engineering 
Division shall assume such responsibility, and as deemed necessary establish it 
provincial, city and municipal operation units. 
ARTICLE VII 
MISCELLANEOUS PROVISIONS 
SEC. 29. Agricultural and Fisheries Mechanization Plan. - The Department 
shall formulate and implement a National Agricultural and Fisheries Mechanization Plan 
upon approval of this Act. 
7 


The Local Government Units through an ordinance shall also formulate and 
implement their respective Provincial, City and Municipal Agricultural and Fishery 
Mechanization Plans as a vital component of their respective Agricultural and Fishery 
Modernization Plans. 
SEC. 30. Land Consolidation- The Department, together with the Department 
of Agrarian Reform shall carry out land consolidation program in order to effect suitable 
field shapes and sizes conducive to efficient operation of agricultural machinery and 
equipment and likewise to ensure its economies of scale. 
The land consolidation projects shall: 
a. 
promote farm land clustering with a minimum of 50-hectares cluster for 
synchronized farming operations from land preparation to harvesting in 
cooperation or contract with agricultural mechanized operation service 
providers; 
b. 
undertake farm development planning; and 
c. 
strengthening of farmers cooperatives and associations. 
SEC. 31. Use of Renewable Energy. - The use of renewable energy such as 
windmills, solar energy, bio-mass and other farm-based energy sources shall be 
promoted as power sources for the operation and maintenance of agricultural and 
fishery machinery and equipment for agriculture and fisheries. The Department in 
collaboration with the Department of Energy, DOST and State Colleges and 
Universities, and the private sector shall undertake research and extension activities to 
enhance the use renewable energy in the Philippine farm operation. 
SEC. 32. Infrastructure Support-
The government shall provide priority 
investment for the infrastructure needs in clustered farm land identified as key 
agricultural and fishery production areas to accelerate agricultural and fishery 
mechanization in the countryside and this include irrigation facilities, farm-to-market 
roads, power and communications facilities. 
SEC. 33. Implementing Rules and Regulations. -
The Department, in 
consultation with stakeholders shall promUlgate the necessary rules and regulations. 
SEC. 34. Funding. -
The amount necessary to carry out the program shall be incorporated in the 
Appropriations Act. 
. 
All funds currently allocated for agriCUltural and fisheries machinery and 
infrastructure projects under the Agricultural and Fisheries Modernization Program, in 
particular, the Ginintuang Masaganang Ani (GMA) Programs for rice, corn, livestock, 
HVCC and fisheries, and other locally- or foreign-assisted projects of the Department of 
Agriculture, and that of the Agrarian Reform Funds of the Department of Agrarian 
Reform (DAR) and that of the Department of Science and Technology (DOST) shall be 
integrated to constitute the initial Agricultural and Fisheries Machinery and Infrastructure 
Program Fund, and thereafter, shall be incorporated as part of the funding appropriation 
of the Agricultural and Fisheries Modernization Program; 
All Local Government Units shall likewise include in their investment plans, as 
part of the priority appropriations of their 20% Economic Development Fund, the funding 
support for the implementation of their respective provincial, city, municipal and 
barangay agricultural and fisheries mechanization and infrastructure programs; 
• 
8 


The Agricultural and Fisheries Machinery and Infrastructure Program Fund shall 
be used for the following activities: 
a. 
Training of farmers, fisherfolk, farm workers, agricultural and fisheries 
machinery operators and technicians and program implementers; 
b. 
Upgrading of agricultural and fishery mechanization facilities and equipment 
of the Department of Agriculture and Local Government Units; 
c. 
Investment and Feasibility studies on agricultural and fisheries machinery 
and infrastructure projects; 
d. 
Information campaign; 
e. 
Testing and evaluation of AMTEC; 
f. 
Registration of agricultural and fisheries machinery and equipment and 
other regulatory activities; 
g. 
Agricultural and Fisheries Machinery Demonstration Centers; 
h. 
R&D on the manufacturing of local engines 
i. 
Grant for the young entrepreneurs and agricultural engineers who intend to 
pursue agricultural and fishery machinery enterprises projects; and 
j. 
Strengthening the DA and LGU's Agricultural Engineering Groups. 
SEC. 35. Separability Clause. - The provisions of this Act are hereby declared 
separable, and if any clause, sentence, provision or section hereof, should be declared 
invalid, such invalidity shall not affect the other provisions of this Act which can be given 
force and effect without the provisions which have been declared invalid. 
SEC. 36. Repealing Clause. - All laws, or parts thereof, inconsistent herewith 
are hereby repealed or modified accordingly. 
SEC. 
37. Effectivity. -
This Act shall take effect fifteen (15) days after its 
publication in two (2) newspapers of general circulation. 
Approved, 
9