REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No, 8388

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

In 2017, the country’s Gross Domestic Product (GDP) grew by 6.68 percent. The Gross
Value Added (GVA) in the agriculture and fishing sector, which accounted for 8.49 percent
of the GDP, registered a 4.01 percent growth during the year. Agriculture plays a significant
role in the Philippine economy. This sector serves as a major source of income and
‘employment of our country especially in the rural areas as it remains their primary source of
‘occupation.

However, despite the enormous contribution of the agriculture sector to our economy, our
farmers and fisherfolks remain to be amongst the poorest in the country. The average income
of our farmers is around Php4,000 a month or about Php48,000 a year. The average age of
our farmers is 56 years old and their average educational attainment is only Grade IV.
Without the active intervention of the government and the necessary support system for them,
workers in the agriculture sector would remain poor and the country will continue to be
plagued with poverty.

There is a need to uplift the lives of our farmers and fisherfolks to achieve economic
independence thru the introduction of appropriate support system that would make
agriculture an innovative, adaptable, and lucrative sector that can truly bring about inclusive
growth

This proposed measure seeks to capacitate our agricultural and fisherfolk communities
through an enterprise development program that will provide assistance to farmers and
fishermen in developing their own business. The Farmers and Fisherfolk Enterprise
Development Program provided herein presents opportunities for farmers and fisherfolk to
develop technical skills, use production equipment and facilities, gain access to credit, and
avail of business development counseling services.

By providing our farmers and fisherfolks these capacity-building opportunities, the
government will be able to give every Filipino family, specifically those in the agriculture
sector, an equal opportunity to build a better life.

In view of the foregoing, immediate passage of this. i ly sought.

Representative
Magdalo Para sa Pilipino Party-List


REPUBLIC OF THE PHILIPPINES:
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No, 8388

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
INSTITUTING THE FARMERS AND FISHERFOLK ENTERPRISE
DEVELOPMENT PROGRAM OF THE DEPARTMENT OF AGRICULTURE AND
FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SEC.1. Short Title.- This Act shall be known as the “Sagip Saka Act of 2018”.

SEC.2. Declaration of Policy.- It is the declared policy of the State to achieve
sustainable modem agriculture and food security by transforming agricultural and fishing
communities to reach their full potential, improving farmers and fisherfolk incomes and
quality of life, and bridging gaps through public-private partnerships.

‘Towards these ends, the State recognizes the essential role of the private sector in
promoting and supporting enterprise development in the agriculture and fisheries sectors,
opening up of opportunities and markets for agricultural and fishery products in the domestic
and world markets, and developing entrepreneurship among our farmers and fisherfolk.

In pursuance of this policy, the State shall strengthen the farmers and fisherfolk
enterprise development program of government by establishing a comprehensive and holistic
approach in the formulation, coordination and implementation of enterprise development
initiatives, consolidate the roles of different government agencies involved in farmers and
fisherfolk enterprsise development, intensify the building of entrepreneurship culture among
farmers and fisherfolk, and provide incentives to private entities that support the farmers and
fisherfolk enterprise development initiatives of the government.

SEC3. The Farmers and Fisherfolk Enterprise Development Program. There is
hereby established the Farmers and Fishefolk Enterprise Development Program, herein
referred to as the Program, which shall refer to the comprehensive set of objectives, targets,
and holistic approach and assistance in promoting the establishment of enterprises involving
agricultural fishery products. It shall be integrated and be made consistent with the
Agriculture and Fisheries Modemization Plan, and the Micro, Small and Medium Enterprises
Development Plan.


SECS. Beneficiaries of the Program- The possible proponent groups or
beneficiaries of the Program are the following:

a) Existing producer groups with members producing commodities which are
included in the priority commodity value chains and have potential to increase
their marketable surplus;

b) Farmers and fisherfolk groups which have potential to produce marketable surplus
and demonstrate willingness to voluntarily adopt clustering with other groups and
forge contracts or formal marketing agreements with buyers or private
intermediaries;

¢) Producer groups or cluster of growers that are we either operational and/or show a
willingness to undergo capacity building on enterprise development and
management; and

d) Micro, small and medium scale processors, consolidators, exporters, and other
enterprises, who are willing to assist producers groups in vertical clustering or
joint business planning, and forge contracts or formal marketing agreements with
such producer groups. Joint business planning and investments of the producer
groups and agro-processors will be supported if it will result in increased
engagement of the producer groups in value adding activities.

Farmers and Fisherfolk who are not members of any organization operating in the
priority commodity value chain must join the proponent groups for them to be eligible either
as a member of the proponent group or as supplier to the enterprise.

SEC.6. Implementing Agency and Partner Agencies. The DA shall be the
implementing agency of the Program. It shall tap the assistance, expertise and resources of
the following agencies, such as, but not limited to, the Philippine Coconut Authority, the
National Dairy Authority, the Bureau of Soils and Water Management, the Philippine Center
for Post-Harvest Development and Mechanization, the Bureau of Fisheries and Aquatic
Resources, the Agricultural Training Institute, the Agricultural Credit and Policy Council,
and the Bureau of Agricultural Research.

The DA shall likewise collaborate and secure the technical support and assistance of
other departments and their attached agencies and corporations to support enterprise
development in the priority commodity value chain, such as: the Department of Agrarian
Reform, the Department of Environment and Natural Resources, the Department of Science
and Technology, the Department of Trade and Industry (DTI) and the Department of Interior
and Local Government.

SEC.7. Private Sector Partnership.- Partnerships or alliances between farmer and
fisherfolk groups and the private sector may be formed to improve market access of producer
‘groups.

The following criteria shall be considered in the selection of private sector partners:

a) Committed to enter into marketing contract or buy-back agreement with the
producers group;


b) Will undertake technology transfer on the provided goods and/or services;
©) Financial and organizational capability to undertake the proposed enterprise; and

d) Established actual experience in undertaking or implementing the proposed
enterprise.

Private sector partners may also provide or donate equipment, machineries, and other
forms of assistance to farmers and fisherfolk engaging in enterprise development.

The DA shall issue the guidelines and impose the qualification requirements in
recognizing private sector partners of the Program.

SEC. Farmers and Fisherfolk Enterprise Development Information System.- The
DA, through the Agribusiness and Marketing Assistance Service, shall maintain a Farmers
and Fisherfolk Enterprise Development Information System to assist government in
formulating plans and programs on enterprise development, and to enable producer groups,
the private sector, local government units, and potential donors to respond to the needs of the
local and world markets and in generating resources for further enterprise development. The
information system shall contain a list of possible and implemented programs and projects; a
registry of agricultural and fisheries enterprises, and private companies engaging these
enterprises or have expressed interest in participating in the Program, and other information
that may be identified by the DA.

SEC9. Direct Purchase by National and Local Government Agencies. — To
promote and support farmers and fisherfolk enterprise development, national and local
goverment agencies are hereby mandated to directly purchase agricultural and fishery
products from accredited farmers and fisherfolk coopertives and enterprises: Provided, That,
said agricultural and fishery products are necessary in the performance of their respective
mandates such as, but not limited to, government feeding programs, calamity and relief
operations and health and nutrition programs among others.

For purpose of this Act, the procurement by national and local government agencies
of said agricultural and fishery products shall be exempt from the application of the bidding
process prescribed under relevant government procurements laws: Provided, That, said
agencies shall undergo a negotiated procurement under the applicable guidelines of the
Government Procurement Policy Board.

SEC.10. Tax Incentives and Exemptions. — The provisions of any general or special
aw to the contrary notwithstanding:

Gifts and donations of real and personal properties shall be exempt from donor's
‘tax.

b) The Land Bank of the Philippines shall provide preferential rates and special
window to accredited farmers and fisherfolk enterprises; and

°)

Exemptions from income tax may be provided for income arising from the
operations of the enterprise: Provided, That the farmer and the fisherfolk

4


In the identification and prioritization of agricultural and fishery products that will be
supported, the Program shall make use of science-based methodologies, such as the value

chain analysis.

‘The forms of assistance to be provided under the Program shall include:

a)

1)

©)

dq)

Improvement of production and productivity including agricultural
extension services, skills development, provision of production inputs,
equipment and facilities/infrastructure for production and post-production
activities;

Improvement of producers’ and enterprises’ access to financing in the
form of credit grants as well as crop insurance;

Provision of access to improved technologies through research and
development; and

Provision of business support and development services, particularly in the
areas of access to markets, marketing, and networking.

SECA. Coverage of the Program.- The Program shall cover the following areas:

a)

b)

°)

da)

e)

8)

h)
i)

Agricultural and fisheries production, including processing of fisheries and
agri-based products and farm inputs;

Acquisition of work animals, farm and fishery equipment and machinery;

Acquisition of seeds, fertilizer, poultry, livestock, feeds and other similar
items;

Procurement of agricultural and fisheries products for storage, trading,
processing and distribution;

Construction, acquisition and repair of facilities for production,
processing, storage, transportation, communication marketing and such
other facilities in support of agricultural and fisheries;

Working capital for agriculture and fisheries graduates to enable them to
engage in agriculture and fisheries related economic activities;

Agribusiness activities which support soil and water conservation and
ecology-enhancing activities;

Working capital for long gestating projects; and

Credit guarantees on uncollateralized loans to farmers and fisherfolk.

‘The Department of Agriculture (DA) may include other areas of intervention in order
to expand and support enterprise development in the agriculture and fisheries sector.


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cooperatives and enterprises shall register as barangay microbusiness enterprises
pursuant to Republic Act No. 9178, otherwise known as the “Barangay Micro-
Business Enterprise (BMBEs) Act of 2002”.

SEC.11. Implementing Rules and Regulations. — Within sixty (60) days from the
date of effectivity of this Act, the DA, in consultation with the DTI, and the Department of
Finance shall formulate the rules and regulations for the proper implementation of this Act.

SEC.12. Separability Clause.- \f any provision of this Act is declared invalid or
unconstitutional, the other provision not affected by such declaration shall remain in full
force and effect.

SEC.13. Repeating Clause. All laws, executive and administrative orders, rules and
regulations inconsistent with the foregoing provisions are hereby repealed or modified
accordingly.

SEC.14, Effectivity.- This Act shall take effect after fifteen (15) days following the
completion of its publication either in the Official Gazette or in newspaper of general
circulation in the Philippines.

Approved,