Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No.______________ 
Introduced by Hon. Faustino Michael T. Dy III 
EXPLANATORY NOTE 
Everyone goes through a time of need; perhaps one of the saddest tales 
is of the farmer who pawns his land for much less than what it is worth, in order 
to meet his family’s needs.   
The humble farmer does this at the risk of losing his prized possession to 
pay for the cost of his children’s schooling, sudden illness in the family, etc. It is 
rare that he will do so to pay for something he would consider a mere luxury. 
The image of a farmer begging for help from usurious lenders is a familiar 
one, and supported by studies. For instance, the Congressional Policy and 
Budget Research Department, in its published paper, “Uplifting the Life of Every 
Filipino through Enhanced Productivity and Social Equity,” stated that about 39% 
of small farmers and fisherfolk borrowers did not have access to formal credit 
due to lack of acceptable collateral and limited information about loan products. 
Where/who would these people turn to in their times of need? 
This bill aims to eliminate this sad picture from memory. 
Since private banks loathe the idea of losing potential earnings, and thus 
close their doors to customers with limited resources for collateral, it is incumbent 
upon the government to open other avenues that will help respond to their 
situation. 
The government should look upon this effort as akin to an investment, and 
just one of the ways it accomplishes its Constitutional mandate of serving the 
people by promoting social justice in all phases of national development. 
July 1, 2022
8:00 am
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Hence, it is exhorted that the government allocates resources to enable 
farmers to obtain loans during their usual times of necessity: periods of 
enrollment, Christmas, etc.; and times of sudden need: when a loved one dies, 
is hospitalized, etc. It should be the refuge that never fails its people when the 
storms come.  
The loan facility shall enable the farmer to fully pay his obligation by 
allowing repayments to be made after every cropping season rather than monthly 
or other usual frequencies. 
Through this measure, it is hoped that concrete, measurable changes in 
our farmers’ lives may become apparent and felt. And with prayers that it is not 
yet too late for most of those for whom this measure is meant. 
This bill was first filed by this representation in the 18th Congress. In view 
of this representation’s burning desire to correct the neglect of this sector and 
restore their dignity, immediate approval of this bill is earnestly sought. 
FAUSTINO MICHAEL T. DY III 
5th District, Isabela 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No.____________ 
INTRODUCED BY REP. FAUSTINO MICHAEL T. DY III 
AN ACT  
TO MANDATE THE TIMELY PROVISION OF LOANS TO FARMERS, 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. Title. – This Act shall be known as “Farmers’ Refuge Act.” 
SECTION 2. Declaration of Policy. – Article II, Sec. 10 of the 1987 Constitution 
states, “The State shall promote social justice in all phases of national development.” 
Section 9 of the Constitution states that it shall also “promote a just and 
dynamic social order that will ensure the prosperity and independence of the nation 
and free the people from poverty through policies that provide adequate social 
services, promote full employment, a rising standard of living, and an improved 
quality of life for all.” In support of these policies, the State further shall ensure that 
the State shall make available loans to our farmers when they need it. 
SECTION 3.  The following agencies are tasked with the following duties and 
responsibilities: 
a. Department of Finance – to determine the usual needs, and amounts of
loans that may be needed and applied for by our farmers, and the
approximate timings during which such needs may arise
b. Departments of Agriculture, and Agrarian Reform – to supply data and
information regarding our farmers that may be required by other agencies
involved in this Act
c. Landbank – to administer the loans to farmers, and ensure the availability
and sufficiency of funds
SECTION 4. Loan and Repayment Scheme. – The government, through the 
Landbank of the Philippines, shall anticipate loan applications and make sure that 
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funds are available therefor. Repayment shall be made after every cropping, and 
interest shall not exceed six per cent (6%) per annum. The loans shall be available 
in variable tenors. An applicant may apply for a second loan even if the first is not yet 
fully paid. 
 
SECTION 5. Reportorial Requirements. – The Department of Finance and/or 
Landbank shall submit an annual report to the House of Representatives Committee 
on Agriculture and Food on the relevant information pertaining to the accomplishment 
of the purposes of this Act. 
 
SECTION 5. Appropriation. – An initial funding of PhP 500,000,000 shall be 
allocated for this purpose. Subsequent requirements shall be determined by the DoF 
and shall be included in its annual budget. 
 
SECTION 6. Implementing Rules and Regulations. – The DoF, as lead, in 
collaboration with the DA and DAR, shall formulate the rules and regulations of this 
Act within ninety (90) days of its effectivity. 
 
SECTION 7. Penal Provision. – Any person, not a government official or 
employee, who violates any provision of this Act shall be punished with imprisonment 
of one (1) year and/or a fine not exceeding PhP 100,000.00.  
 
Any government employee or official who violates any provision of this Act shall 
be punished with imprisonment of two (2) years and/or a fine not exceeding PhP 
200,000.00. 
 
SECTION 8.  Repealing Clause. – All acts, decrees, letters of instruction, 
issuances, orders, or parts thereof inconsistent with any provision of this Act are 
hereby deemed repealed or modified accordingly. 
 
SECTION 9.  Separability Clause. – If any part of this Act is declared 
unconstitutional, the rest of the provisions shall remain in force and effect. 
 
SECTION 10. Effectivity. – This Act shall take effect 15 days after its publication 
in two (2) newspapers of general circulation or in the Official Gazette. 
 
APPROVED.