REPRES,
Republic of the Philippines S BN

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HOUSE OF REPRESENTATIVES — / pecewen 2\
Quezon City S are 09 JULES
TWENTIETH CONGRESS SE, &g
First Regular Session é
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HOUSE BILL Ni 1640

Introduced by Representative Paolo Henry M. Marcoleta

EXPLANATORY NOTE

Fertilizers and pesticides costs contribute significantly to food production and
end-user costs in the Philippines.

In 2022, fertilizers constituted 20.5% of the average palay production cost per
hectare, while pesticides made up around 4.6%.' Although palay production cost has
since decreased,’ our reliance on imported fertilizer makes our food production
particularly vulnerable to global shocks.

Compounded with the problem of dwindling farmlands and shrinking number of
farmers and farm workers, there is indeed a critical need to implement both long-term
and immediate reforms to our agricultural sector.>

In addition to exploring systemic solutions such as shifting to local organic
fertilizers and curbing fertilizer importation, there should likewise be a mechanism to
ease production costs that would provide immediate relief to farmers such as the
institutionalization of a subsidy program for fertilizers and pesticides. Such an
intervention will allow our farmers to recuperate from their losses, make farming an
attractive option for new workers, and help mitigate any inflationary effect from
farming input price movements.

In light of the foregoing, the iny ¢ of this bill is earnestly sought.

PAOLO HENRY M. MARCOLETA
Representative, SAGIP Partylist

pine Statistics Authority. "2022 Costs and Returns of Palay Production”. (October 2023).
? Arcalas, Jasper Emmanuel. “Palay Production Cost Falls to Three-Year Low”. The Philippine Star. (02
December 2024).
 Hufana, Chloe Mari A. "Hunger Knocks on Door as Philippine Farmers Vanish”. Business World. (10 April
2025).


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No._1640

Introduced by Representative Paolo Henry M. Marcoleta

AN ACT
INSTITUTIONALIZING THE FERTILIZER AND PESTICIDE
SUBSIDY PROGRAM UNDER THE DEPARTMENT OF
AGRICULTURE, AND APPROPRIATING FUNDS THEREFOR

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 “National Fertilizer
and Pesticide Subsidy for Farmers Act.”

SEC. 2. National Fertilizer and Pesticide Subsidy Program (NFPSP). —
The Department of Agriculture (DA) and the Fertilizer and Pesticide Authority
(FPA), in coordination with the Local Government Agriculture Office, shall
implement a National Fertilizer and Pesticide Subsidy Program for the benefit of
the qualified farmers.

SEC. 3. Forms of Subsidies. — The DA shall provide fertilizer and pesticide
subsidies to qualified farmer beneficiaries. The DA and the FPA shall determine
the amount of the subsidy vouchers depending on the current situation and
prevailing market prices.

a. Fertilizer Subsidy - Subsidy voucher of no lower than Six Thousand Pesos
(Php 6,000.000) per hectare annually; and


b. Pesticide Subsidy - Subsidy voucher of no lower than Two Thousand Pesos
(Php2,000.000) per hectare annually.

SEC. 4. Eligible Beneficiaries, — The eligible beneficiaries must meet the
following criteria:

a. Must be a Filipino citizen of legal age; and

b. Must be listed in the Registry System for Basic Sectors in Agriculture
(RSBSA) of the DA.

Qualified farmers registered under the RSBSA shall be automatically
included in the list of eligible beneficiaries of the NFPSP.

SEC. 5. Appropriation ~ The amount needed to implement this Act shall
be included in the annual general appropriations of the DA.

SEC. 6. Implementing Rules and Regulations. — Within thirty (30) days
from the effectivity of this act, the DA and FPA shall, in consultation with the
relevant stakeholders, promulgate the necessary rules and regulations to
effectively implement the provisions of this Act.

The non-promulgation of the rules and regulations provided under this
section shall not prevent the immediate implementation of this Act upon
effectivity,

SEC. 7. Mandatory Submission of Report to Congress. - The DA shall
submit to the Congress of the Philippines, through the respective Chairpersons of
the Committee on Agriculture, a program report detailing the implementation
every fiscal year. The program report should include the following:

a. Total number of farmer beneficiaries including relevant information, such
as but not limited to, age, sex, location, size of arable land;

b. Overall Production Performance of the Farmer Beneficiaries; and

c. Assessment of the impact of the program to the National Food Security
Plan.


ean eene

SEC. 8. Separability Clause. - If any provision or part of this Act is
declared invalid or unconstitutional, the remaining parts not affected shall remain
in full force and effect.

SEC. 9. Repealing Clause. - All laws, presidential decrees, executive
orders, letters of instructions, administrative orders, proclamations or
administrative regulations that are inconsistent with the provisions of this Act are
hereby repealed, amended, or modified accordingly.

SEC. 10. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,