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THIRTEENTH CONGRESS OF THE REPUBLIC 
1 
First Regular Session 
1 
OF THE PHILIPPINES 
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Introduced by Senator Edgardo J. Angara 
EXPLANATORY NOTE 
It is estimated that as much as five million Filipinos in the rural sector are 
either unemployed or underemployed. 
Although the employment in the rural 
sector is largely seasonal, much of the unemployment and underemployment can 
be attributed to underutilization of agricultural lands throughout the country. 
With the Rural Employment Generation Act of 2001 , one million hectares if 
idle and underutilized lands will be converted into modern productive agricultural 
resources. 
In the process, it is expected that one million rural jobs will be 
created, with annual farm incomes of at least Twenty Five Thousand Pesos per 
hectare being generated. 
Corn, cassava and high value commercial crops shall be planted 
throughout the country under this Act, with the Department of Agriculture serving 
as lead agency. Tie-ups between the private sector and government will be 
necessary, including collaborations between agribusiness companies and 
fa r m e r- ben ef i cia r ies . 
As catalyst, the Program will generate rural employment valued at 10.354 
Billion Pesos and private sector investments of 10.605 Billion Pesos. 
More 
importantly, with an improvement in our country's rural employment level, it is 
anticipated that rural poverty will drastically be reduced. 
For the above-mentioned reasons, approval of this bill is earnestly urged. 
EDGARDO J. ANGARA 


THIRTEENTH CONGRESS OF THE REPUBLIC 
1 
OF THE PHILIPPINES 
First Regular Session 
Introduced by Senator Edgardo J. Angara 
AN ACT 
TO ACCELERATE THE DEVELOPMENT OF IDLE AND UNDERUTILIZED 
AGRICULTURAL 
LANDS 
AS 
A 
MEANS 
TO 
GENERAT 
EMPLOYMENT 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
Section 1. 
Title of Act. 
This Act shall be known as the “Rural 
Employment Generation Act of 2001 .’I 
Section 2. 
Purpose of the Act. 
There is a need to accelerate the 
development of idle and underutilized agricultural land throughout the country as 
a means of generating rural economic activity, especially since the majority of our 
country’s poor population belong to the rural sector. 
In generating rural 
employment, it is anticipated that at least one person will find employment for 
every hectare developed, with an increase in income of Twenty Five Thousand 
Pesos (P25,OOO.OO) per farmer. 
Section 3. 
Lead Agencv. 
The Department of Agriculture (,,A”) 
shall 
undertake the implementation of the Rural Employment Generation Program (the 
“Program”) and shall ensure implementation of this Act and its purposes, 
including the determination of areas to be planted. 
Section 4. 
Activities to be Undertaken. 
DA shall undertake the 
development of a total of 845,000 hectares of idle or underutilized agricultural 
land, to be planted to hybrid corn, cassava and high value commercial crops 
(“HVCC”) over a period of two years, as follows: 
Year 1 
Year 2 
Hectares Planted 
Hectares Planted 
Corn 
Cassava 
HVCC 
404,000 
20,000 
185,000 
61 3,000 
88,000 
194,000 
Section 5. 
following features: 
Features of the Program. 
The Program shall have the 
a) 
Modern Technoloqv Svstems. 
The Program will consolidate 
existing crop areas as well as idle prime lands into farm cluster 
modules for mechanized andlor irrigated production of hybrid corn, 
cassava and HVCC; 


Production Credit Support. To ensure the adoption of 
‘ 
modern crop production technologies, the Program will 
enhance farmers’ access to credit for the purchase of 
production inputs through innovative credit schemes through 
the establishment of a seed/guarantee fund for production 
loans to be extended by input suppliers, end-users, traders, 
service providers and the formal banking sector; 
b) 
Human Resource Development. The Program shall train 
farmers on hybrid technologies, farm mechanization, post 
harvest and processing technologies and promote local 
capacity-building 
in 
areas 
of 
participatory 
program 
management and implementation, research and extension 
and agribusiness marketing and management. 
Section 6. Farmer-Agribusiness Tie-ups. The DA shall facilitate 
arrangements between farmers and agribusiness groups in the development of 
agricultural lands. Different business partnership modalities shall be established 
between farmer cooperatives and the private sector to provide ready markets, 
management and technical support, in whichever form most suitable for rural 
development, including but not limited to purchase orders, service or 
management contracts, contract growing or processing arrangements, lease 
agreements and joint venture agreements. 
Section 7. Qualitv Standards and Classification Systems. Quality 
standards and classification systems shall be developed by the DA and 
implemented for feedgrains, vegetables, fibers, fruits and industrial crops in order 
to ensure better prices and competitiveness of domestic produce. 
Section 8. 
Joint Government-Private Sector Committee. A committee is 
hereby created, consisting of the Secretary of Agriculture as Chairman, a 
representative of the private sector involved in agriculture as Vice Chairman, two 
representatives of the farmer-beneficiaries, two representatives of agribusiness 
companies involved in the Program, and two officials of the DA as members, all 
of which shall be appointed by the President of the Republic of the Philippines 
upon recommendation of the Secretary of Agriculture. The committee shall 
facilitate the assistance of the private sector in the identification of farmer 
beneficiaries, credit channels and market and service providers and shall 
oversee the administration, management and implementation of the Program. 
Section 9. Establishment of the Agricultural Development Fund. The 
Agricultural Development Fund (the “Fund”) is hereby established, in the amount 
of Pesos Five Billion Five Hundred Fifty One Million (PhP5,551,000,000.00) for 
the first year and Pesos Four Billion Seventy Eight Million (P4,078,000,000.00) in 
the second year of the Program. The Fund shall be taken from the budget 
allocation of the DA, and will be utilized for the provision of a seed/loan 
guarantee fund for the production loans and direct government intervention in the 
provision of, among others, farm machinery, post harvest facilities. Farm-to- 
market roads and human resource development activities. 
Section I O .  Injunctions, Restraining Orders and Other Interlocutory 
Orders. - The development of the Camarines Sur Special Economic Zone And 
Free port is a national government priority and therefore, no injunctions, 
restraining orders and other interlocutory orders which seek to stop or interrupt 
any contract entered into or project undertaken by the CSSEZA may be issued 
by any court of law or quasi-judicial body except by the Supreme Court of the 
Phi I i ppines. 


Section 11. Separability Clause. - If any provision of this Act shall be 
declared unconstitutional or invalid, the other provisions not otherwise affected, 
shall remain in full force and effect. 
Section 12. RepealinR Clause. - All laws, executive orders or issuances, 
or any patrs thereof which are inconsistent herewith are hereby repealed or 
amended accordingly. 
Section 19. Effectivitv Clause. - This Act shall take effect upon its 
publication in at least two (2) newspapers of general circulation.