Senate

” pite of the Bvevelaey

SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)}

First Regular Session
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SENATE

SENATE BILL NO. _835 —

JUL 17 AS 03

INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

The growth of the agricultural sector plays a crucial role in the country’s
socio-economic development. Faced with an alarming poverty incidence,
particularly in the rural areas, the government should implement measures
supporting infrastructure support facilities, research and development, among
others to address this concern.

This bill seeks to strengthen the country's extension system by
decentralizing it to the appropriate level of political unit that provides a viable
economic unit for agriculture development i.e., the province. It shall establish
a national agency, the Philippine Agriculture & Fisheries Extension Agency
(PAFEA) to orchestrate, provide national directions, set standards of
performance, and provide institutionalized financial and technical support to
the LGUs.

To provide additional support to the extension system, it shall be
mandated for the national government to pay for the salaries and wages of
extension personnel under the administrative direction of the provincial
government. Additionally, the salaries and wages of Local Government Unit
(LGU) extension personnel shall be standardized to that of equivalent
positions in the national government.

In view of the foregoing, approval of this bill is earnestly sought.
©

JOSEPH VICTOR G. EJERCITO



fy Senate

cottce af the Sect
SIXTEENTH CONGRESS OF THE} 13 ALI? 29-03
REPUBLIC OF THE PHILIPPINES — )
First Regular Session )

SENATE

5
SENATE BILL NO. 835 _

INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO

AN ACT
PRESCRIBING THE STRENGTHENING OF THE NATIONAL
EXTENSION SYSTEM TO ACCELERATE AGRICULTURE AND
FISHERIES DEVELOPMENT, APPROPRIATING FUNDS
THEREFOR AND FOR OTHER PURPOSES

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

ARTICLE 4
GENERAL PROVISIONS

Section 1. Short Title. - This Act shall be known as the "Agriculture
and Fisheries Extension Act of 2013."

SEC. 2. Declaration of Policy. - The goals of the national economy are
a more equitable distribution of opportunities, income and wealth, a sustained
increase in the amount of goods and services produced by the nation for the
benefit of the people; and an expanding productivity as the key to raising the
quality of life for all, especially the underprivileged.

The State shall promote industrialization and full employment based on
sound agricultural development and agrarian reform, through industries that
make full and efficient use of human and natural resources, and which are
competitive in both domestic and foreign markets. In pursuit of these goals, all
sectors of the economy and all regions of the country shall be given optimum
opportunity to develop.

Thus, it is hereby declared the policy of the State to enable those who
belong to the agriculture and fisheries sector to participate and share in the
fruits of development and growth in a manner that utilizes the nation's
resources in the most efficient and sustainable way possible by establishing a



more equitable access to assets, income, basic and support services and
infrastructure.

The State shall give priority to promote science, technology and human
resource development as essentials for national development and progress.

The State shall utilize research results through information, extension
and communication services. It shall support the development of a national
extension system that will help accelerate the transformation of agriculture and
fisheries sectors of the Country from a resource-based industry to a
knowledge and technology-based and market-oriented industry.

The State shall adopt the market approach in assisting the agriculture
and fisheries sector while recognizing the contribution of these sectors to food
security, environmental protection, and balanced urban and tural
development, without neglecting the welfare of the consumers, especially the
lower income groups. The State shall promote market-oriented policies in
agricultural production to encourage farmers to shift to more profitable crops.

The State shall empower the agriculture and fisheries sector to develop
and sustain themselves to meet present and future needs of the Country.
Toward this end, the State shall ensure the establishment and development of
the agriculture and fisheries extension system that increases and sustains its
contributions to the achievement of the goals of agriculture modernization as
mandated by Republic Act 8435: a) Poverty Alleviation and Social Equity; b)
Food Security; c) Rational Use of Resources and Sustainable Development; d)
Global Competitiveness; and e) People Empowerment.

SECTION 3. Definition of Terms. As used in this Act, the term:

4. "Agriculturist" refers to a person who is a graduate of a bachelor's
degree in agriculture or any related course registered and licensed with
the Professional Regulation Commission or Civil Service Commission;
who performs communication, curriculum development, econometrics,
statistical work, training and extension works in agriculture production,
trade, and processing including crop and animal protection, food safety,
agricultural and natural resource economics, and marketing;

2. “Agricultural Engineer” refers to a person registered with the
Professional Regulation Commission or Civil Service Commission
performing training and extension work in agricultural and fisheries
mechanization, irrigation, drainage, soil and water conservation,
agricultural buildings and structures, agricultural processing and post
harvest facilities;

3. “Catalytic Financing’ - the provision of financial support to achieve
excellence, equity and increased investment by the local governments
in the implementation of agriculture and fisheries extension services
towards the achievement of national goals;



4. “Civil Society” - refers to the group of organizations whose uncoerced
collective action revolves around shared interests, purposes and
values. Civil societies are organizations composed of community
groups, women’s organizations, faith-based organizations, professional
associations, trade unions, self-help groups, social movements,
business associations, coalitions and advocacy groups;

5. “Consumers - are those that acquire goods or services for direct use or
ownership rather than for resale or use in production and
manufacturing;

6. Empowerment’ - is the expansion of assets and capabilities of people

to participate in, negotiate with, influence, control and hold accountable
that affect their lives; it involves providing authority,
'y, and information to people directly engaged on agriculture
and fishery production, primarily at the level of the farmers, fisherfolk
and those engaged in food and non-food production and processing, in
order to give them enhanced economics rights;

7. "Fisheries" - refers to all systems or networks of interrelated activities
which include the production, growing, harvesting, processing,
marketing, developing, conserving and managing of all aquatic and
fisheries areas;

8. “Fisheries Technologist" refers to a person who is a graduate of a four
year course in Fisheries and registered and licensed with the
Professional Regulation Commission or Civil Service Commission
performing training and extension on fisheries, marine resources and
aquaculture;

9. "Food Security" - refers to the policy objective, plan and strategy of
meeting the food requirements of the present and future generations, of
ilipinos in substantial quantity, ensuring the availability and
affordability of safe and nutritious food to all, either through local
production or importation, or both, based on the country’s existing and
potential resource endowment and related production advantages, and
consistent with the overall national development objectives and policies;

10."Formula grants" - these are national government financial transfers to
the local governments to support the regular expenditures in the
provision of Agriculture and Fisheries Extension Services (AFES) based
on a formula that\ takes into consideration, among others, the level of
economic development of a municipality or a province;

11."Gross Value Added in Agriculture" - refers to the total value, excluding
the value of non-agricultural or fisheries intermediate inputs, of goods
and services contributed by the agricultural and fisheries sectors;

12."Knowledge Management” - is a systematic approach which invents,
understands, shares, creates and utilizes knowledge in order to create
values such as customer's value, employee's value, stockholder's



value, business partner's value and social value to achieve the vision
and goal of the organization;

13."Partnership" - a relationship between and among agencies that is
characterized by mutual cooperation and responsibility towards the
achievement of shared goals;

14."Private sector” - the part of a nation's economy that is not owned and
managed by the government;

15."Producer" - one that produces, especially a person or organization,
that produces goods or services for sale;

16."RBOs" - are rural based organizations or people's organizations
composed of various sectors of the rural community such as farmers,
fisherfolk, growers, seed producers, women, and youth;

47."Targeted financial transfer" - is a financial support provided by the
national government to the LGUs in support of national goals or
programs;

18."Value chain" - is a process from seed to shelf or from the producers to
the consumers, showing activities and interventions offfor a chosen
commodity/ties based on understanding the needs for such
interventions;

19."Veterinarian" refers to a person registered with the Professional
Regulation Commission performing professional services related to the
practice of veterinary medicine including training and extension on
disease prevention contro! and animal health.

SECTION 4. Statement of Goals. - Agricultural extension is a policy
instrument for empowering individuals and organizations; public agriculture
extension shall contribute towards the achievement of the national goals of
agriculture development.

SECTION 5. Statement of Objectives. - Agriculture and fisheries
extension shall contribute to the following objectives:

a) To enhance the economic rights of Producers, especially the
poor, to use the most appropriate technologies they feel will give
them the best profit and to choose the most affordable loans in
producing the quality and quantity of products and to sell their
products freely; Traders, to move goods in the expectation of profits
unconstrained by serious lack of knowledge and information; and
Consumers, to buy safe and nutritious foods at the lowest prices
possible.

b)

To manage knowledge in strengthening the individual and
organizational capabilities of producers, traders and consumers; and



c) To help create an enabling environment that strengthens the
linkage between knowledge generation and knowledge use and
encourages increased investment in agriculture extension by the
private sector, civil society, and Local Governments.

SECTION 6. Clients, - The clients of Philippine agricultural and fisheries
extension system are the producers (farmers, fisherfolk, agricultural
processors), traders, and consumers along the value chain. Public extension
shall focus on the delivery of public goods. The priority clients shall be the
economically and socially disadvantaged groups in agriculture and fisheries.
Local Government Units shall put primary attention to these groups in the
provision of extension services through formula grants and targeted and
catalytic financing of National Government Agencies.

ARTICLE Il
Structure and Organization

SECTION 7. Creation of the Philippine Agriculture and Fisheries
Extension Agency (PAFEA). - The Agricultural Training Institute is hereby
strengthened and transformed into the Philippine Agriculture and Fisheries
Extension Agency (PAFEA). It shall serve as the national apex organization for
@ unified and efficient agriculture and fisheries extension system of the
country. It shall ensure that public extension services meet the national
standards of performance and effectively contribute towards the achievement
of the national goals of agriculture and fisheries modemization

The Philippine Agricultural and Fisheries Extension Agency (PAFEA),
shall coordinate all government extension programs in agriculture and
fisheries.

SECTION 8. Powers and Functions.

a) Provide direction in the development of national extension policies in
agriculture and fisheries;

b)

Orchestrate the development of extension strategic plan including
its financing in coordination with the Department of Budget and
Management and other stakeholders;

°)

Develop and implement national policies and programs aimed at the
continuous improvement of the quality of extension methods,
products, and services towards a more efficient and client-
responsive national agriculture and fisheries knowledge
management system;

d)

Develop a system towards the management of the country's
extension resources for agriculture and fisheries to ensure a
sustainable, participatory. And efficient system of funding for



information, education, and communication materials (IEC) and to
achieve optimal efficiency along the value chain;

e)

Provide leadership in the development and implementation of the
National Agriculture & Fisheries Knowledge Network (NAFKN) in
agriculture and fisheries of the Department through a system of
partnerships that may include, but not be limited to, the (Local
Government Units) |.GUs, the regional development council (RDC),
the Regional Agriculture and Fisheries Council (RAFCs), the
academe especially the SUCs of agriculture and fisheries, the Civil
Society Organizations (CSOs), producers, rural based organizations
(RBO)s and the private sector,’

f) Provide national leadership in consultation with agriculture and
fisheries councils (AFCs), in developing extension partnerships
towards increased investment and private sector participation;

g

‘Team up with state universities and colleges (SUCs) of agriculture
and fisheries as key partners in the implementation of the national
programs specially in the areas of extension innovations, national
training, and monitoring and evaluation of extension institutions and
programs;

hy)

Provide leadership in developing and implementing a national
system of strengthening institutional extension capacities at all
levels of implementation; and

i) In coordination with the Department of Budget and Management
(DBM); the Local Government Units, The Department of Local
governments, and other stakeholders, the PAFEA shall set up a
review mechanism for all agriculture and fisheries extension
programs and budgets of national agencies to determine cost
effectiveness of operations and potential impacts to national goals.

SECTION 9. Structure of PAFEA. - It shall be headed by a Director
General (DG) with a rank of Assistant Secretary to be assisted by two Deputy
Director Generals (DDG) and they shall be appointed by the President upon
recommendation of the Secretary of Agriculture from a list submitted by an
independent Search Committee organized and based on the qualification
standards set by the Council for Extension Research Development in
Agriculture and Fisheries (CERDAF) . They shall have a fixed tenure of six (6)
years and may be re-appointed for an additional term of four (4) years based
on very satisfactory performance.

SECTION 10. The Council for Extension Research Development in
Agriculture and Fisheries (CERDAF) - The Council for Extension Research
Development in Agriculture and Fisheries (CERDAF) is hereby strengthened
It shall ensure that the agriculture and fisheries research, development and
extension policies and programs of the Department are consistent with
national policies and priorities.



a) Functions and duties of the Council for Extension Research
Development in Agriculture and Fisheries (CERDAF).

1. Approve policies covering program priorities and
resource allocation in research and extension of
all agencies of the Department;

2. Enhance coordination and linkage of government
institutions involved in agriculture and fisheries
research, development and extension;

°

. Strengthen the participation of various
stakeholders, especially the civil society, local
government units, and private sector in the
development of National Research Development
and Extension (NRDE) agenda and programs;

4. Strengthen the institutional efficiency of the NRDE
system, including the setting up of a monitoring
and evaluation system on the effectiveness and
efficiency of its various components; and

5. Set guidelines in the use of services and facilities,
collection of fees and in the utilization of income.

SECTION 11. Composition of the Council for Extension Research
Development in Agriculture and Fisheries (CERDAF). The Undersecretary
for Policy and Planning of the DA shalll be the Chair of the Council. There shall
be a Vice Chair to be elected from among the other members of the Board.
The Executive Director of the Philippine Agriculture and Fisheries Extension
Agency (PAFEA) and the Director of the Bureau of Agriculture Research
(BAR) shall be ex officio members and the Chair shall appoint the Executive
Director of PAFEA as Secretary of the Council. The CERDAF shall have the
following as members:

(1) Designated Undersecretaries for Policy &
Planning of the following Departments:

i, Department of Science and Technology;

ii, Department of Environment and Natural
Resources;

iii, Department of Agrarian Reform;
(2) Presidents of the following LGU organizations:

i, League of Provinces;



ii, Union of Local Authorities of the Philippines (ULAP);

(3) Four (4) CSO representatives from the rural
youth, rural women, and farmer, and fisherfolk
sectors as identified and selected by the
Department of Agriculture;

(4) One (1) private sector representative
designated by the Management Association of
the Philippines (MAP);

(5) Representatives from scientific/professional
organizations/societies,

(6) One representative each from the following
national professional _—_organizati
agriculturists; ii) agricultural engineers;
technologists and iv) veterinarians.

i)
i) fishery

SECTION 42. Offices under the PAFEA. -To carry out the functions of
the Agency, PAFEA shall have four technical offices as follows: (1) Policy
Development; (2) Extension innovations & National Training; (3) Knowledge
Products & Services Development; and (4) Extension Governance &
Partnerships.

The PAFEA shall maintain a small regional office to: (1) liaise with the
Department Regional Field Units (RFUs) that should serve as the principal
arm of the Department to implement extension policies and programs in the
regions (2) provide regional technical assistance in the implementation of
PAFEA policies and programs and (3) monitor and evaluate extension offices
and programs being undertaken by government agencies. The PAFEA is
authorized to utilize existing Agricultural Training (AT!) plantilla positions but in
no case shall it exceed 85% of the plantilla positions in 2010.

ARTICLE I
Organization of the Local Government Extension Services

SECTION 13. Province as the LGU Unit of Operation for Agriculture
& Fisheries Extension. - To achieve efficiency and to provide more
Tesponsive services, the administrative unit for the planning and
implementation of the extension services at the level of Local Government
Units is the province through a Provincial Agriculture and Fisheries Extension
Services under the Office of the Governor. The Provincial Agriculture and
Extension Services shall be headed by a technically-qualified career Provincial
Agriculturist (PA). The PAS shall be appointed by the Director General of
PAFEA chosen from three qualified nominees submitted by the Governor. Its
staff shall be composed of technically qualified career agriculturists,



economists, statisticians, agricultural engineers, fishery technologists and
veterinarians appointed by the
Provincial Governor.

SECTION 14, Extension Personnel in the Municipalities. - All
municipal and non-chartered agriculture and fisheries extension personnel are
hereby transferred to the province, and they shall be appointed by Governor
and become employees of the provincial government upon the effectivity of
this Act. However, they will continue to serve municipalities and non-chartered
cities as detailed employees of the province based on a rationalized
organizational structure endorsed by the LGUs and approved by the PAFEA
and the DBM. The Municipal Agriculture and Extension Services shall be
headed by a technically-qualified career Municipal Agriculturist Officer (MAO)
who shall be appointed by the Director General of PAFEA chosen from three
qualified nominees submitted by the Governor.

SECTION 15. Salaries and Wages of Extension Personnel. - The
salaries and wages of the agriculture and fisheries technical extension
personnel shall be paid by the National Government through an annual grant-
in-aid to be paid out of the regular appropriation of the PAFEA of the
Department of Agricutture; Provided, however, that during the first year of the
effectivity of this Act, the local government concerned shall reallocate its
savings from the personal services for agricultural personnel to its agriculture
and fisheries operations; Provided, further, that every year thereafter, the
concemed LGU shall appropriate the equivalent funds as the minimum
amount for its agricultural and fisheries operation or counterparts to national
grants-in-aid in agriculture and fisheries, without prejudice to the provision of
additional funds that may be allocated by the LGUs for this purpose. The
salaries and wages of technical extension personne! shall be standardized
and equal to that of comparable positions of national employees without
prejudice to the provision of additional staff benefits by concerned LGUs
where finances warrant. The provision of grants in aid to pay for the salaries
and wages of the technical personnel of the LGU extension services shall be
subject to external review and evaluation every five years to determine its
impact to the quality of services and its cost-effectiveness. A copy of the report
shall be provided to Congress and serve as the basis for the continuation or
modification of the grants-in-aid,

SECTION 16, Professionalization of Extension Services. The
PAFEA, in coordination with the Civil Service Commission and subject to the
approval of the CERDAF, shall develop qualification standards beyond the
minimum set by the Civil Service Commission for the various managerial,
technical, and non-technical positions of the extension services of the country
including that of all local government units. The PAFEA shall also develop a
career path of all technical extension personnel that will allow them regardless
of assignment or location in government, to move vertically in the promotion
system. Managerial positions shall be open to all qualified personnel
regardless of geographic or agency assignment. Towards this end, the PAFEA
shall issue guidelines for the creation of a merit promotion boards for each



extension agency that will include representatives of the SUCs of agriculture
and fisheries.

SECTION 17. Structure of the Provincial Extension Services. - The
provincial agriculture and fisheries extension services shall organize and
structure its services based on the agricultural and extension needs of the
province and on the standards set by the PAFEA. The technical positions of
the PAFEA, and the Provincial Extension Services shall be rationalized to
provide the required number of positions for agriculturists, communication and
curriculum specialists, economists, agricultural engineers, _ fishery
technologists and veterinarians.

SECTION 18. LGU Livestock Production Services. In recognition of
the need to provide an integrated extension approach to total farm
development, the LGU livestock production Services shall be part and parcel
of the Provincial Agricultural Office (PAO). In cases where these functions
were transferred to the Provincial Veterinary Services, they shall be returned
and integrated to the rest of the PAO services.

SECTION 19. Strategic Plan in Agriculture & Fisheries. To provide
coherence of all government plans in agriculture and fisheries and to achieve
efficiency in the use of resources, all provincial governments are required to
develop a five-year strategic plan in agriculture and fisheries based on the
framework and principles provided by the Department of Agriculture (DA). The
Strategic Plan shall serve as the basis for the DA to provide short-term and
long-term assistance. The yearly program of work and budget shall be derived
from the strategic plan.

ARTICLE IV.
Funding for Extension Services

SECTION 20. Initial Appropriation. - For the first year of
implementation of this Act, the amount of five billion pesos (PHP
5,000,000,000.00) shall be appropriated out of the total budget of the
Department of Agriculture (DA) for personal services, grants-in-aid to the
LGUs, operation and capital outlay requirements of the Philippine Agriculture
and Fisheries Extension Agency (PAFEA),

The Department of Budget and Management (DBM) is hereby
mandated to include annually in the President's program of expenditures for
submission to Congress and release an amount not less than five billion pesos
(PHP 5,000,000,000.00) or one percent of the gross value added in agriculture
and fisheries, whichever is higher, for the implementation of this Act

The PAFEA is authorized to utilize part of its yearly appropriation to set
up or upgrade necessary facilities to improve the provision of national
extension services.



All assets, resources both human and financial of Agriculture Training
Institute (AT!), shall be transferred to the PAFEA

All revenues generated out of the use of services, facilities and
equipment shall be utilized by the Agency to augment its maintenance and
operating expenditures subject to the approval of the Governing Board

ARTICLE IV.
Final Provisions

SECTION 21. Oversight Committee. The Congressional Oversight
Committee for Agriculture and Fisheries Modernization shall oversee the
implementation of this Act for a period not exceeding five (5) years from its
effectivity.

SECTION 22. Implementing Rules and Regulations. -Within ninety
(90) days from the effectivity of this Act, the implementing rules and
regulations shall be formulated by the Department of Agriculture in
coordination with the members of the Congressional Oversight Committee on
Agriculture and Fisheries Modernization. The said rules and regulations shall
be submitted by the Secretary of the Department of Agriculture (DA) to the
Committee of Agriculture of both Houses of Congress

SECTION 23. Repealing Clause. - All laws, decrees, executive orders,
rules and regulations, issuances or parts thereof inconsistent with this Act are
hereby repealed or amended accordingly.

SECTION 24. Separability Clause. - \f any provision of this Act is
deciared invalid or unconstitutional, the other provisions not affected thereby
shall remain valid .and subsisting.

SECTION 25. Effecfivity Clause, - This Act shall take effect thirty (30)
days from the date of its publication in the Official Gazette or in at least in two
(2) national newspapers of general circulation

Approved,