Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
First Regular Session

COMMITTEE REPORT NO.

Submitted by the Committee on Agriculture and Food and the Committee on Ways and

approval in substitution to House Bill Nos. 3182 and 3292
Sponsors: Reps. Mark Llandro L. Mendoza, Agapito H. Guanlao, Pryde Henry A.
eves, Karlo Alexei B. Nograles

The Committee on Agriculture and Food and the Committee on Ways and Means to which
were referred House Bill Nos. 3182 and 3292 introduced by Representatives Agapito H.
Guantao, Pryde Henry A. Teves, Karlo Alexei B. Nograles, both entitled :

AN ACT PROMOTING CORPORATE FARMING AND PROVIDING
INCENTIVES THEREOF

have considered the Same and have the honor to recommend to the House that the attached

House,Bill No. 4528 , entitled:

AN ACT PROMOTING CORPORATE FARMING AND PROVIDING
INCENTIVES THEREOF

be approved in substitution to House Bill No. 3182 and 3292 with Representa‘iv.s Mark
Llandro L. Mendoza, Agapito H. Guanlao, Pryde Henry A. Teves, Karlo Alexei b. Nograles,
Victorino Dennis M. Socrates, Jocelyn S. Limkaichong, Joselito Andrew R. Mendoza, Eric
G. Singson, Jr., Deogracias B. Ramos Jr., Tomas V. Apacible, Rodolfo G. Valencia, Luey T.
Gomez, Pedro M. Pancho, Randolph S. Ting, Salvador H. Escudero iil, Robert Raymund M.
Estrella, Maximo B. Rodriguez, Jr., Daryl Grace J. Abayon, Cresente C. Paez, Nicanor M.
Briones, Jesus N. Sacdalan, Victor F. Ortega, Phillip A. Pichay, Imelda Q. Dimaporo, Rachel
del Mar, Fatima Aliah Q. Dimaporo, Sharon $. Garin, Jeci A. Lapus, Carlos M. Padilla,
Raymund V. Patino, Angelo B. Palmones, Catalina Leonen Pizarro, Reynaldo V. Umali,
is Pe-Villagfenegnd Victor J. Yu as co-authors thereof.

MDRO L. MENDOZA -RMILANDO I, MANDANAS:
ain Chairman
¢ and Food Committee on Ways and bizans

*


FACT SHEET

House BillNo.__ 4528
(In substitution to House Bilt Nos.’ 3182 and 3292)

AN ACT PROMOTING CORPORATE FARMING
AND PROVIDING INCENTIVES THEREOF

Introduced by: Representatives Mark Llandro L. Mendoza, Agapito H. Guanlao, Pryde Henry
A, Teves, Karlo Alexei B. Nograles, Victorino Dennis M. Socrates, Jocelyn §. Limkaichong,
Joselito Andrew R, Mendoza, Eric G. Singson, Jr., Deogracias B, Ramos Jr., Tomas V.
Apacible, Rodolfo G. Valencia, Lucy T. Gomez, Pedro M. Pancho, Randolph S. Ting,
Salvador H. Escudero III, Robert Raymund M. Estrella, Maximo B. Rodriguez, Jr., Daryl
Grace J. Abayon, Cresente C. Paez, Nicanor M. Briones, Jesus N. Sacdalan, Victor F. Ortega,
Phillip A. Pichay, Imelda Q. Dimaporo, Rachel de! Mar, Fatima Aliah Q, Dimaporo, Sharon
S. Garin, Jeci A. Lapus, Carlos M. Padilla, Raymund V. Palatino, Angelo B. Palmones,
Catalina Leonen Pizarro, Reynaldo V. Umali, Luis R. Villafuerte, and Victor J. Yu

Committee Referral: COMMITTEE ON AGRICULTURE AND FOOD
Committee Chairperson: HONORABLE MARK LLANDRO L. MENDOZA

OBJECTIVES:

* To attain food (rice/corn) security by re-evaluating and redefining the
government's short- and long-term priorities and resources aimed at improving
Tice productivity.

«To encourage the private sector to engage in agricultural production by adopting
@ “corporate farming” scheme, with rice/com as the primary crop, to feed their
own employees, thus, taking the lead role in promoting food security

* To help eliminate the chain of middlemen and bring the producers and
Processors face-to-face, leading to better product distribution, stimulating higher
private investment in agriculture, and resulting in higher outputs, income and
exports

KEY PROVISIONS:
*  Stipulates that participation to the Corporate Farming Program is voluntary.

* Provides for specific corporate farming schemes that comorations/partnerships
may enter into.

*  Stipulates that agricultura! lands purchased or leased for the purpose cannot be
converted to other uses within a period of seven (7) years; that within a period of
three (3) years, fifly per cent (50%) of the land should have been deva‘oped and
ninety per cent (90%) within a period of five (5) years.


+ States that participating corporations/partnerships shall be required to provide a
minimum of 600 kilograms of rice/com per employee per year or 50 kilograms
per employee per month.

*  Stpulates that production in excess of the employees’ consumption
requirements may be sold in the local markets, provided that such will be
reported to the National Food Authority (NFA).

«States that the Department of Agriculture (DA) and Department of Agrarian
Reform (DAR) shall be the lead agencies that will institute measures to ensure
higher rice/corm productivity through the corporate farming schemes

* Provides further that the DA and DAR shall facilitate the processing of
management contracts between the corporations/partnerships and the farmers’
groups with the appropriate government agencies

*  Stipulates that corporations/partnerships participating in the Corporate Farming
‘Scheme shall be entitled to tax incentives, such as:

> exemption from tha payment of Customs duties on the impor: tic of all
types of agricultural inputs particularly seeds, fertilizers, agricultural
machinery and other agricultural implements as provided under RA 9281,
which amends RA 84365 or the Agriculture and Fisheries Modernization;

» exemption from the payment of value added tax (VAT) on the importation

of agricultural inputs in accordance with Section 109 of the National
Internal Revenue Code, as amended; and

> exemption from the payment of capital gains tax for a person, either
natural or juridicat, who sells and/or transfers idle agricultural land to
corporations and partnerships engaged in corporate farming.

© Stipulates that loans extended by govemment and private banks to
corporation/partnerships engaged in corporate farming shall be treated as
compliance to Republic Act 10000, also known as the Agri-Agra Reform Credit
Act of 2009.

RELATED LAWS:

* Republic Act 10000, also known as the Agri-Agra Reform Credit Act of 2009.
+ General Order 47

+ RA 9281, amending RA 8435 also known as the Agriculture and Fisheries
Modemization Act

* National Intemal Revenue Code


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO__ 4528

Introduced by: Representatives Mark Llandro L. Mendova, Agapito II, Guanlao, Pryde Henry
A. Teves, Karlo Alexei B. Nograles, Victorino Dennis M. Socrates, Jocelyn S. Limkaichong,
Joselito Andrew . Mendoza, Eric G. Singson, Jr, Deogracias B, Ramos Jr., Tomas V.
‘Apacible, Rodolfo G. Valencia, Lucy T. Gomez, Pedro M, Pancho, Randolph S. Ting,
Salvador H. Escudero Ill, Robert Raymund M. Estrella, Maximo B. Rodriguez, Jr., Daryl
Grace J. Abayon, Cresente C. Paez, Nicanor M. Briones, Jesus N. Sacdalan, Victor F. Ortega,
Phillip A. Pichay, Imelda Q. Dimaporo, Rachel del Mar, Fatiina Aliah Q. Dimaporo, Sharon
8. Garin, Jeci A. Lapus, Carlos M. Padilla, Raymund V. Palatino, Angelo B. Palmones,
Catalina Leonen Pizarro, Reynaldo V. Umali, Luis R. Villafuerte, and Victor J. Yu

AN ACT PROMOTING CORPORATE FARMING AND PROVIDIiC:
INCENTIVES THEREOF

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

SECTION 1, Domestic Corporations and Partnerships. — For the purpose of this Act,
domestic corporations and partnerships shall refer to all corporations and partnerships
organized and existing under Philippine laws, operating for profit: Provided, Yhat the
corporations and partnerships report earnings over the last four (4) years that will allow them
to engage in the production of rice/eomn for their employees’ requirements without adversely
affecting their financial viability. Appropriate guidelines shall be issued to determine the
corporations and partnerships that are to be covered by this Act.

SEC. 2. Corporate Farming Arrangements. Participation in the Corporate Farming
Program shall be on a voluntary basis. For the purpose of this Act, the following are the
corporate farming schemes that the corporations/partnerships may engage in:

(a) Corporations and partnerships with existing landholdings suitable for rice/eorn
production may manage the land and produce the rice/com or may enter into a
management/contractual arrangement with farmers’ groups such as farmers’ associations,
cooperatives and agrarian reform communities (ARCs);

(b) Corporations and partnerships may purchase or lewse on a long term basis, public
or private agricultural land suitable for rice/com production, whereby the


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corporations/partnerships are given full management end production control over the
purchased or leased lands or may enter into contractual arrangements, or joint ventures with
landowners, farmers’ organizations and ARCs.

Agricultural lands purchased or leased for the purpo:e cannot be converted to other
uses within a period af seven (7) years. Fifty percent (50%) of the land should have been
developed within a period of three (3) years, and ninety percent (90%) within a period of five
(5) years.

For purchased lands, the government has the right to offer the said lands to other
interested parties based on the original acquisition cost and initial development cost, if any, to
be refunded to the corporation/partnership, in case the land has not been developed as
intended; and

(©) Corporations/partnerships may enter into contractual arrangements with farmers’
organizations/ARCs, whereby the corporations and partnerships will provide the production
inputs and technical and related services, then buy back the produces

(d) Corporations and partnerships may enter into joint ventures/contractual
arrangements with timber licensees and pasture lessees for the cultivation of lands found
suitable for rice/corn production in the timber concessions or leased pastures: through the
Department of Environment and Natural Resources,

The local government units (LGUs) shall be required to identify appropriate land
areas for corporate farming in consonance with their comprehensive land-use plan and
ordinances. The LGUs shall require the participating corporations or partnerships to provide
livelihood projects/opportunities to families who will not be hired by the said entities.
Further, the LGUs may also identify local taxes that may be offered as incentives for
corporate farming,

SEC. 3. Disposition of Exeess Production. - Participating corporations or
partnerships shall be required to provide a minimum of s'x hundred (600) kilograms of
rice/com per employee per year or fifty (50) kilograms per employee per month. Production
in excess of the employees’ consumption requirements may be sold in the local markets:
Provided, That such will be reported to the National Food Authority (NFA).

SEC. 4. Implementing Agencies and Implementing Rules and Regulations (IRR). —
The Department of Agriculture (DA) and the Department of Agrarian Reform (DAR) shall be
the lead agencies to institute measures to ensure higher rice/cor productivity through
corporate farming schemes. Moreover, the DA and the DAR shall facilitate with the
appropriate government agencies the processing of management contracts between the
corporations/partnerships and the farmers’ groups. Further, the DA and the DAR shall


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oversee and monitor the IRR and guidelines of this Act. The DA and the DAR shall exercise
the following functions:

{a) Develop eligibility criteria for both corporations/partnerships and farmers’ groups,
cooperatives and/or ARCs for consideration under this Act and to institute their acereditation:
Provided, That the farmers’ group criteria should include management capabilities, technical
and production skills critical to the effective operation of the corporate farm;

(b) Identify suitable private and public-owned rice/corm production areas for
corporate farming and determine the maximum ceiling of landholdings for corporate farming
arrangements: Provided, That the DA and the DAR shall periodically determine the need to
expand/reduce rice/corn production areas for corporate farming schemes on :te Dasis of
rice/corn demand-supply gaps;

(c) Facilitate and promote grassroots cooperation to access agricultural services such
as information, inputs and technical assistance;

(4) Initiate and develop periodic rural/farm assembly markets to provide avenues to
showcase their produce;

(e) Exercise regulatory functions with respect to the adherence to the provisions of
contracts and arrangements entered into by both corporations/partnerships and farmers’
groups, cooperatives and/or ARCs and to develop mechanisms to facilitate negotiations and
mediate in disputes between stakeholders on matters of contract enforcement;

(8) Coordinate with the appropriate government agencies to ensure de timely
establishment of support services such as credit, infrastructure, extension services and others;

(g) In consultation with other concemed government agencies, nongovemment
organizations, private sector and farmers’ groups involved in rice/com production, formulate
the IRR necessary to operationalize the provisions of this Act within ninety (90) days from its
approval; and

(h) Facilitate the registration of the participating corporations/partnerships with the
NFA.

SEC. 5. Incentive Package. - Corporations and partnerships which shall participate in
the Corporate Farming Act shall be entitled to tax incentives covering all aspects of the
operation germane to corporate farming activities. These include the following:

(a) Exemption from the payment of customs duties on the importation of all types of
agricultural inputs, particularly seeds, fertilizers, agricultural machinery and other agricultural


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implements as provided under Republic Act No. 9281, which amends Republic Act No. 8435
or the Agriculture and Fisheries Modernization Act;

(b) Fxemption from payment of value-added tax (VAT) on the importation of
agricultural inputs in accordance with Section 109 of the National Internal Revenue Code, as
amended;

(c) Exemption from the payment of capital gains tax for a person, either natural or
juridieal, who sells and/or transfers idle agricultural land to corporations and partnerships
engaged in corporate farming,

SEC. 6. Other Incentives. - Loans extended by banks, both government and private,
to participating corporations/partnerships shall be treated as compliance with Republic Act
10000 or “The Agri-Agra Reform Credit Act of 2009.”

SEC. 7. Duration, — Participating corporations/partnerships wiv« existing
landholdings may engage in rice/corn production within a period of time to be determined by
this Act. However, those corporations/partnerships which have purchased agricultural lands
for the purpose cannot convert the land to other uses within a period of seven (7) years.
Acrangements/negotiations for leased public or idle private agricultural lands shall be for a
period not less than seven (7) years.

SEC. 8. Automatic Review. — The DA and the DAR, being the lead government
agencies in the Corporate Farming Program, shall submit periodic reports to both Houses of
Congress on the accomplishment of the Program. A review on the viability of the Program
shall be made by the concemed agencies after five (5) years or its implementation.

SEC. 9. Separahility Clause, The provisions of this Act are hereby declared to be
separable, and in the event one or more such provisions are held unconstitutional, he validity
of the other provisions shall not be affected thereby.

SEC. 10. Repealing Clause. All laws, decrees, executive orders, rules and
regulations, issuances or parts thereof inconsistent with the provisions of this Act are hereby

repealed or modified accordingly.

SEC. 9. Fffectivity, - This Act shall take effect after fifteen (15) days following its
publication in the Official Gazette or in a national newspaper of general circulation.

Approved,


Republic of the Phifippines
HOUSE OF REPRESENTATIVES
Quezon City

45
Virst Reguiar S

* Congress

orn

Hodse RinNo. 8292.

tatvoduced by HON. PRYDE BENRY A. TEVES AND HON. KARLG.
ADEXE! B. NOGRALES

PLANATORY NOTE

Recent surges inthe world price a rive ail the increasingly tight global supily ol vice
fave bec etisings Rus oF Tou crisis in amany parts Gi Asia whe
intevoatiaual Fee prives has been on the rise since 200i. On the averaye, rice prices lov the Ih
ten months of 2007 was 35% higher at US $297 fen compared to the sunie pe
USS221/lan. international price of rice continued ta rise early 2008
wuiality “Thai 10% was Guoted at USKS4GMow in Magch 2008, up by 13
February of the sume yer

al Est yer a

Ive, tly bi

eupait or

Many experts belicve that the price trend in the global market far rice will be sustained
the high costs of oil and fuet-based cher tibia the prevalence of crop diseases, thie
emergence ol chemically resistant p grawing Impact of climute Ghanue lave becu
hugely blumed for the price spikes in the world market

he Philippines? wutnerability to Nuvtuations iv the supply and prive of vive a the ylitul
twarket lus been underscored by its dependence om importation lo fill domecic pehichisn
shorfaily Already. the country has Poor ane af the st inporters OF rice, accountine loro

OF total ree imparts: in 2006-2007 (FAU.2G08), ‘Thus iy pactly duet production:
disparities between dunieslic and Kucign vee pode:

wiuduction inputs

Sin uddition to spinaling costs

(nthe toca Loa, Up
Fics Waters lave Tuededd

suembganed Factors uv a,
daicaies, Vor MOK,

ition WO DkTkeT SpeCUbaine a
prupat ison af the bse



age retail rice price-levels displayed 4 17.47% upuend tir regulacinilled rive
sof Agricuilural Suitistivs, 2008)

dumiestic
VIM pews

nerease for well-mitled rive (Lbs
Thus, the yoveruncm needs t re-evaluate and subsequently reefing its short run
longi privrities and resourves aimed at improving rice productivity. “Whe fara
challenge vondmanting the governor involves the attainment of food (rice) secunty in be
food sultiviency

A pw Wy to the problem is by encouraging move private Scere
participation in agelewtiual production, Decpes private sector iavelyeurent will bring ti
productive inpuis int ieehaelogies avaitsble 1 help improve fm business structuies in the
counly. Homust be noted thal about eighty (80%) uf landholdings in me county sae
ovcupindleased by small lamers whicte de not have the necessary resources: anh skiS 10
ance yields,

matic und efigetive appre

Hae abu

oat Us

Voward this cad, this Act seeks Me adoption of 4 “corporate farming” scheme witli the
Privale sector aking the lead role (© promete food security. Specifically, this requires the
coumry’s most profitable corparutions to engage in agricultural production to feed thew own
empluyves. In addition, corporations und other business entities shall be required tu enzage int
corporate tanning with vice ax {wir primary erop. Vast tracts of auused public kamls eat by
tapped for such corporate farms. Corporations can also enter into joint venture agreements with
farmer beveticiaries of ugearian reform commu As such , employers will not be able us
teed their own employees but also ensure the pravision of adequate supply to local consumers

‘Vhere ave two types of facilitating policies that are relevant to corparaie/contiiet Lars
One involves veyilutory regime adjusungnts te reduce wansaction costs of couttis
aeruigenients, The other iavolves providing incemive mechanisms tu encourage evr)

Laruting

With the afarementioncd effectively in place. corporate fanning systéms help olin

hot middlemen and bring the producers and pracessers fee-to-face. In the hung
lows tv heacr allocative vilivieney, induces higher private investment in ayricullure. ane cesele~
Ww higher outpuns, income and exports

PRYpe RY AL TEV:

KARLO ALEXEL IB. NOCKAL



public of the Philippines
HOUSE OF REPRESENTAVIVES
Quezon City

3
House Bill No.__ 3292

lnteoduced by HGN, PRYDE HENRY A. TEVES AND HON.
ALEXE) B. NOGRALES

AN ACT PROMOTING CORPORATE FARMING
AND PROVIDING INCENTIVES TAEREOE

Be it enacted by the Senute and the Houx? of Representatives of the Philippines ia
Congress assembled.

PeraGOn and Pannerships. For the purpose af this Act, dumesuic
pS shall cefer to all corporations and partnerships orgnized aint

fit, provided that suid corpurstioiun uted
partnerships report earnings over the last four WG) years that will allow them to engaye in the

Production of rice/corm for their employees" requirements without adversely uttecting. this
Heaneial viability. Appropriate guidelines shall te issued to determine the corpurstions sad
Partnerships that ure 10 be covered by this Act

Section 2. Comporate Farming Arrangements, Participation ¢ the Corporate Furi
shall be on a voluntary basis, Fi |

schemes that the corporations

a. Corporations/ Partnerships — with existing landholdings suiiable ior tice:
Production may manage the lund and produce the ticefeor or may enter int +
Managemen’ contractual arranzemen/s with taemers* groups such as Leen
and Agrarian Reform Coaimunities (ARCS):

b. Comorationy paraceships may Purchase or lens

on # long tent busi pubilic or
Phvate agricultural fut

Yor siecicaca peactuction wieteby the

‘Ment and prodvetion control uvee the

Setual arrangemoats or jo

ian reform communin
-

Purchased o Jeased kuids ar may enter mio exe
with landowuers, farmers’ orgunications and

HW Aeuures
jee



eetealluc binds purchased or teased fae the purpose cunnel be © erie to ull
s wilhuy a period of seven (7) years. Hilly porvent (50%) al Ue land should dine
heen developed within s period of three (2) years: and Hinely percent (9% witha a
period of five (5) years.

For purchased tands, die govcenuient hus the i
jniveested patios he

Mt offer the said lands ay otic

| aeguisiciva cay
tr be cetlindcd do the curpocatioasparumenhip, in case the
cas Lneettaled,

andl initial develupiie

nil ees bot Bown des ele peal

© “Corpeseiioneparinceships aciy” etter ined Goutraciial AF AARE Aes Wi fariuers
erguniailonsiageurian elon — communities whereby the corperatioes sun
Bulaceships will provide Ga peodustion iupurs and welinigal amd tehied cervs es
then bay buck the produce,

f

Me Cosporauunyparinerships may enter inte joint veatures/eontucteal asa gemenn.
Wi timber licensees aud pastuce lessees for the caltivatiun of laraly ocd suituble
for rive/eorn produc the timber concessions or leased pastures; through the

Deparment of Environment and Natural Resources,

‘Tbe Locat Goverment Unies AL
areas Tor curper

Ibe required 1 identity apprxp
tle Tarniny in consonance with their comprehensive kind use plan an
ordinances. ‘The LGUts shall royuise the participating, curpovations/partieesh
provide ‘AvcPhood projectvoppurtanities to funiilies wha will mot te oli
incentives fi aly arming.

aa)

suas

Lape

Seettoa 3, Disposition of Excess Production “the Corporations'partnerships shall be wequired te
proeide 4 mininniny of 08 kilugruus of eiveicoun per employee per year ur 30 kilugtuns per
iiployes per month, 2a 1D eaves of the employees’ eonsumplion requirements may be
sald wh thy local anirkets, provided din such: will be reported to the National Koad Auth
(NEA).

roduet

*

Sevtien 4 buplementing Agencies and Implementing Kules tad Regulations (Ili)
Department of Agrivalure (DA) aad the Deparment of Agrarian Relorm (DAR} stall be se
lend agencies 4 institute measures ta ensune higher rigef/corn productivily thru
fuming schemes . Moreover, DA amd DAR shell facilitate with the appropriate goverment
WW Processing of manigewent contacts between the corpal }ons/parLOEsthips cts aac
{hanes groups. Fuvther, DA and DAR shall uversce anal monitor the IRR anu guidelines i tus
Ast DAuind DAK sinull exereise the following fumerions

Develop vhgibility cetteria toy bouh Corporabons’parinerships and Eumer
cooperatives, and/or agrarian refven somnuuiies for cansidenion under this Act
aud to uastitule their accreditation: Provided that den farmers proup crite
melude im: eon fubaibilttes, tectnical snd) provuction skills ctitgt se thy
vileclive uperation of the carporate tae:



bo Tdennal’y stitial
Lenin

privile sak prabligsownied rie

Mine maxima eviling at Lindbollings for corperste tauming

vincats, Provided shag die DA and DAR shatl periouucully detenmune tlie need
ty expundivedive rice/cam production areas Tur carporate
basis of rice/corn demand-supply gaps:

¥ Haviliic and promote grassiaots cooperation to access agricnlees
infocinatin, inputs und technical assistance;

Mi ttitiate and develop pevisahe cussl/farm assembly markets bo provide avevuics wt

0 PHORHULTION sees Aan co

farming sehvaws on the

a

showeare their produces
 Eaeicise regutitory lametions with respect to the adherence to the parisons
Contracts and acungements cmered into by bath corporttions/parwersuips ail

farmers groups, cooperatives andor a
mec!

grariae relaray conmuunities cub te devel]

hes to facil nat

YP mativrs Of contract enforcement,

1 Coordinate wilh appropriate goverment agencies 6 ensure the dintely establesiuncet
ol support services suck as gredit, iufrasiructure, extension services and others,
In cunsuitation with ceed yaverninent

list con

Won-z0y ramen

organizations, pwrivate sectur and farmer groups involved in sice/coun production,
formulate the IRR necessary to eperstionwize the provisions af thus Act within iinet

(80) days fron) is approw:
Facilitate the regiswation of the participating corporativns/y
National Goad Authority (NEAL

tnerships wilh the

jection 5 tncer

Faen

ive Paekaue. Carpocationséparis

which will partieipate in
Ast shall be entitled ty try incentives covering all aspects oF the uperion
corporate Ruming activities. ‘These iivlute the folinwins

Ua paeriity

4 Exemption fiom tbe payment af iaritl aud Customs dies tor the importation al atl
fypes of agriculiorst inputs paricutarly seeds, fertilizers, -wgriculturat wachiners. and
other agriculiusit implemeuty a8 provided under RA Y28T which amends RA S435 mn
the Agricultural and Fisheries and Modernigaion Act

bo ESenmption frome the, Vatue Added Tas (VA'T).o the importation o¥ ugricaltw
Inputs an aecordinee with Sectien 109 (A) of the National Intemaal Revenue Cole. as
amended:

& EXenption fram the payment of capital gains tay fora person, either austus
wuridical, who sells anor transtees ie sagciculttiral land 1 corpus
purtaerships engaged in corporate Haming; antl

s& Tux incentives, inedudin:

©. 226 or the Oniaibus

wes vas

neome 18 holidsy, in a

ordanee with the pros isons ol

Jivestinent licentives Code, as amendual

Section 6 Other Incentives. Loans exte

by bunks, both government and private. 1

Pe Heating corpuctions/pariaerships shall be ueuted ass compliance to MD 717 or ihe dygete

Law

celion 7. Duration

Prullcipating eoporationsparteeeships with existing kundhuktays stuty

ern rosuctivn withia a peeod oF dine wo be decermived dy this Act. Staweves



those corporttions/parineeships which purchused agricultual lands lov the
vonyert the lund 4 other uses within a periad al seven (7)
seul public oF idle private agricutioral ta

Puapose cua
yours. Arrangemenlsy in
ls shall be fora period not less the

hiativns [out

seven (71 sears

Seen

S Auto
Retorm, bein:

Hibs Review. “Mie Depirunent of Agoeulure and the Departmen
tre dead yovernutent agencies in the Corporate Fariting Progen
beviodic reports ta both Ele: snplishment of the Program. #

the viuhility of the program shall be made by the concerned iysencies alice live (3) §
inplemennuion

uf Congress on the ac

review ua

sa its

SS

on 9. Htfecvily. This Act shall ike effect upon its approval

Appraved,



FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES
MOUSE BULL No. __ 8182

Introduced by the Honorable Agapito H. Guaniao

EXPLANATORY NOTE

The current food crisis especially on the rice importation fiasco has brought to
focus the need to review the government policy on food security as well as the need
to seck crealive means to reinvigorate the agricultural sector.

Viewed through the prismn of a liberalizing economy seeking to compete
against well-entrenched world economies, the Philippines however is hard-pressed
to make ils agricultural policies more responsive and more advanced in order to
hope for a modicum of parity with the rest of world.

Investments in the agricultural sector, while very needed, cannot be hoped to
be shouldered by the public sector alone in the light of the government's perennial
fiscal challenges since decades past.

Corporate farming programs aim to attract more private sector engagement in
the agriculture sector, Corporale farming’s unique advantage is ils ability to”
vertically integrate the entire process of food production and offers more efficient
and effective management not only of the farm itself, and also the entire chain of
agriculture-related business, including seed supply, agrochemicals, food processing,
machincry, storage, transport, distribution, marketing, advertising, and retail sales.
‘This would have significant impact on the ensuring a more stable rice and corn
supply, as well as making rice and com prices more predictable.


However, any measare seeking to promote corporate farming must address
the national needs and aspirations for national sovereignty and agrarian justice with
the need to provide security to the larger masses of poor Filipinos.

BUTI. Farmers Party has long upheld the primacy of farmers’ security as
synonymous to food security. The farmers and farm-workers must be partners in
any corporate farming endeavors and not merely spectators or indentured laborers.
Society should also not discount the probability that the farmers themselves, through
their agricultural cooperatives, may acquire the necessary capitalization and
landholding required by a vertically-integrated corporate farming scheme, a “cor-
porative” farming design that a pro-farmer legislation should be open to.

This Kepresentation’s proposed version of a corporate farming initiative
reflects this view. Thus, provisions upholding the rights of agrarian reform
couununities are well reflected and prioritized, as well as the necessity for an
allernative “cor-porative” farming scheme as aforementioned. Compliance with
existing laws especially on Organic Farming and the revised Agri-Agra Law is
eamesily pursued and proposed.

Your fail support on this measure is therefore earnestly sought

HON. ‘PITO. |ANLAO


FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES
HOUSE BILLNo.___ 3182.

Introduced by the HONORABLE AGAPITO H. GUANLAO

eee

AN ACT PROMOTING CORPORATE FARMING AND PROVIDING
INCENTIVES THEREOF

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

SECTION 1. Domestic Corporations and Partnerships, - For the puspose of this
Act, domestic corporations and partnerships shall refer to all corporations and
Partnerships organized and existing under Philippine laws, operating for profit;
Provided, ‘That said corporations and partnerships report earnings over the last four
(@) years that will allow them to engage in the production of rice/corn for their
employees’ requirements without adversely affecting their financial viability.
Appropriate guidelines shall be issued to determine the corporations and
partnerships that are to be covered by this Act.

SEC. 2, Corporate Farnting Arrangements. - Participation to the Corporate
Farming Program shail be on a voluntary basis. For the purpose of this Act the

(2) Corporations/ partnerships with existing landholdings suitable for
rice/corn production may manage the land and produce the rice/ corn or may enter
into @ management/contractual arrangement with farmers’ groups such as farmers’
associations, cooperatives and agrarian ceform communities (ARCS);

(b) Corporations/ partnerships may purchase or lease on a fong term basis,
Public or private agricultural Jand suitable for rice/corn production, whereby the


the purchased or leased Jands or may enter into contractual arrangements, or joint
ventures with landowners, farmers’ organizations and ARCs?

Agriculyyal larvis purchayed oF leased for the purpose cannot be converted
to other usesfBhould the corporate farming venture ceases to be financially viable
and the partners declare bankruptcy or insolvency, land ownership shall
automatically revert to the agrarian reform beneficiaries within a period of three (3)
years in the case of public agricultural lands and for private lands originally
distributed under the Comprehensive Agrarian Reforin Program. Fifty percent (50%)
of the land should have been developed within a period of three (3) years, and
ninety percent (90%) within a period of five (5) years.

For purchased lands, the government has the right Lo offer the said lands to
other interested parties based an the original acquisition cost and initial
development cost, if any, to be refunded to the corporation/ partnership, in case the
land has not been developed as intended; and

(©) Corporations/ partnerships may enter into contractual arrangements with
farmers’ organizations/ ARCs, whereby the corporations and partnerships will

provide Lhe production inputs and technical and related services, then buy back the
produce. Provided, That the farm inputs that shall be utilized shall subscribe to th VA
requirements set forth by Republic Act 10068 or the "Organic Agriculture Act of

2010."

The local government units (LGUs) shall be required to identify appropriate
Jand areas for corporate farming in consonance with their comprehensive land-use
plan and ordinances. The LGUs shall require the participating,

corporations/ partnerships to provide livelihood projects/ opportunities to families
who will nat be hired by the said entities.

SY Further, the LGUs may also identify local laxes that may be offered as
incentives for corporate farming

(2) Farmer's or other agricultural cooperatives with existing landholdings and
SS aiticien capitalization to undertake a “cor-porative” farming scheme for rice/com.

SEC. 3. Disposition of Excess Production. - The corporations/ partnerships shalt
be required to provide a minimum of six hundred (600) kilograms of cice/curn per
employee per year or fifty (50) kilograms per employee per moth. Production in


excess of the employees’ consumption requirements may be sold in the local
markets: Provided, That such will be reported to the National Food Authority
(NBA).

7 SEC. A, Implementing Agencies and Implementing Rules and Regulations (RR).
The Department of Agriculture (DA) and the Department of Agrarian Reform (DAR)
shall be the lead agencies to institute measures to ensure higher rice/com
productivity through corporate farming schemes.

Moreover, the DA and the DAR shall facititate with the appropriate
government agencies the processing of management contracts between the
corporalions/ partnerships and the farmers’ groups, Further, the DA and the DAR
shall oversee and monitor the IRR and guidelines of this Act. The DA and the DAR
shall exercise the following Functions:

(a) Develop cligibility criteria for both corporations/ partnerships and
farmers’ groups, cooperatives and/or ARCs for consideration under this Act and to
institute their accreditation: Provided, That the farmers’ group criteria should
include management capabilities, technical and production skills critical to the
effective operation of the corporate farm;

e(b) Identify suitable private and public-owned rice/com production arews for
corporate farming and determine the maximum. ceiling of landholdings for
corporate farming arrangements: Provided, That the DA and the DAR shall
periodically determine the need to expand/reduce rice/corn production areas for
corporate farming schemes an the basis of rice/com demand-supply gaps;

A®) Facilitate and promote grassroots cooperation to access agricultural
services such as information, inputs and technical assistance;

4d) Initiate and develop periodic rurat/farm assembly markets to provide
avenues to showcase their produce;

~(¢) Exercise regulatory functions with respect to the adherence fo the
provisions of contracts and arrangements entered inta by both
corporations/ partnerships and farmers’ groups, cooperatives and/or ARCs and lo
develop mechanisms (0 facilitate negotiations and mediate in disputes between
stakeholders on matters of contract enforcement;


7 (f) Coordinate with the appropriate government agencies to ensure the timely
establishment of support services such as credit, infrastructure, extension services
and others;

Ag) In consultation with other concerned government agencies,
nongovernment organizations, private sector and farmers’ groups involved in
rice/corn praduction, formulate the IRR necessary to operationalize the provisions
of this Act within ninety (90) days from its approval; and

__ (h) Facilitate the registration of the participating corporations/ partnerships
with the NEA.

_-SEC. 5. Inventive Package. - Corporations/ partnerships which shall participate
in the Corporate Farming Act shall be entitled to tax incentives covering all aspects
of the operation germane to corporate farming activities,

These include the following:

@) Exemption from the payment of customs duties on the importation of all
types of agricultural inputs, particularly seeds, fertilizers, agricultural machinery

and other agricultural implements as provided under Republic Act No, 9281, which
amends Republic Act No. 8435 or the Agriculture and Fisheries Modernization Act;

(b) Exemption from the value-added tax (VAT) on the importation of
agricultural inputs in accordance with Section 109(d) of the National internal
Revenue Code, as amended; Provided, ‘That the imporlation requirements sh in’

accordance with the provisions of Republic Act 10068 or the "Organic Agriculture
Act of 2010."

(©) Exemption from the payment of capital gains tax for a person, either
natural or juridical, who sells and/or transfers idle agricultural land to corporations
and partnerships engaged in curporate farming; and

(4) Tax incentives, including income tax holiday, in accordance with the
provisions of Executive Order No. 226 or the Gnunibus Investment Incentives Code,
a5 amended.


SEC. 6. (ither Incentives, — Loans extended by banks, both goverment and
private, to participating corporalions/ partnerships shall be treated as compliance ta
Republic Act 10000 or “The Agei-Agra Reform Credit Act of 2009.”

SEC. 7. Duratiou, - Participating, corporations/ partnerships with existing
landholdings may engage in rice/cora prowtuction within a period of time to be
delermined by this Act. However, those corporations/ partnerships which purchased
agricultural Janus for the purpose cannot convert the land fo other uses and must
relinquish-land ownership in favor of agrarian reform bencficiarieg withm a period
of Barge @) years in the case of public agricultural lands and for private lands

sipin Wocapttbuted under the Comprehensive Agrarian Reform Program should
they wish to terminate the corporate farming agreement.

Arrangements/ negotiations for leased public or idle private agricultural
lands shall be for a period not Jess than RYU) years.

SEC. 8 Automatic Review. - The DA and the DAR, being the Jead government
agencies in the Corporate Farming Program, shall submit periadic reports to both
Houses of Congress on the accomplishment of the Program.

A review on the viability of the Program shall be made by the concermed
agencies after five (5) years of its implementation.

SEC. 9. Ejfectivity. - This Act shall take effect after fifteen (15) days following
its publication in the Official Gazelle or in a cational newspaper of general

circulation. ry

Approved,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
Fifteenth Congress

Regular Session

MINUTES OF THE MEETING CONDUCTED BY THE COMMITTEE ON AGRICULTURE AND FOOD ON 22
NOVEMBER 2010 AT CONFERENCE RM, 1&2 AT 1:30 PM, MITRA BUILDING, HOUSE OF REPRESENTATIVES,

DILIMAN, QUEZON CITY.

Members Present :

Rep. Robert Raymund M. Estrella
Rep. Nicanor M. Briones

Rep. Carlos M. Padilla

Rep. Joselito Andrew R. Mendoza
Rep. Agapito H. Guanlao

Rep. Diogracias B. Ramos, Ir.
Rep. Sharon Garin

Rep. Catalina Leonen Pizzaro
Rep. Randolph Ting

Rep. Salvador H. Escudero II
Rep. Rachel Del Mar

Rep. Victor J. Yu

Rep. Victorino Dennis M. Socrates
Rep. Raymund Palatino:

Rep. Daryl Grace Abayon

Authors Present :

Rep. Mark Uandro L. Mendoza
Rep. Henry Pryde Teves
Rep. Angelo P. Palmones

Guests in Attendance :

Mr. Gregorio San Diego
Mr. Jess Cham

Mr. Willie Baldonado

Mr. Jane C. Bacayo

Mr. Franscisco Buencamino
Mr. Rosendo So

Asec. Dave Cathagan
Asec. Allan Umalé

Mr. Ourian Tan

Mr. Rolando Tambago
Usec. Segfredo R. Serrano

Rep. Maximo B. Rodriguez, Jr.
Rep. Jesus N. Sacdalan

Rep. Imekta Dimaporo

Rep. Victor Ortega

Rep. Philip Pichay

Rep. Fatima Dimaporo

Rep. focelyn S. Limkaichong
Rep. Raynaldo Umati__.
Rep. Lucy T.Gomes

Rep. Eric G. Singson, Jr.
Rep. Luis Villafuerte

Rep. Pedro Pancho

Rep. Tomas V. Apacible
Rep. Rodaifo G. Valencia

- United Broiler Raisers’ Association

+ Meat Importers and Traders Association
- MITA

- National Meat Inspection Services

+ PAMPL

- Abono

-DA

-DA

- National Federation of Hog Farmers
- CEVIPPCO

DA



A CALL TO ORDER/ROLL CAL

‘The meeting was called to order at 2:44 pm. Then, a motion to dispense the calling of the rolk was
hereby approved.

U.- DELIBERATIONS/ACTIONS ON MEASURES:

that the Committee will deliberate on House Resolution 301, directing the
Department of Agriculture (DA) to immediately stop importation of choice cuts { frozen chicken leg
quarters) and conduct an immediate consultation with the broiler producers/ associations and House Bills,
3182 and 3292, promoting corporate farming in the country.

‘The Chair stressed the need ta sustain the viabitity of the broiler production industry in the country
‘as it directly and indirectly employs two hundred thousand people and to ensure the safety of chicken
meat and its affordability, whether imported or not. He also said that the corporate farming bill encourages
the country’s most profitable corporations to engage in rice production to provide rice requirements of
their employees. He said that the corporate farming bill has been approved on the Third Reading in the 14"
Congress,

‘At this point, the Chair informed the Body regarding reparts on the sale of double- dead hogs or
“botcha” and the alleged imported pork in various public markets in Metro Manila, Metro Cebu and
Mindanao.

Deliberation on House Bills 3182 and 2292, the Corporate Farming Act

At this point, the Chair recognized Rep. Teves. Rep. Teves said that the bill was extensively
discussed during the last Congress by the Committee. He then requested the Committee to have the bill
approved.

‘Then Rep. Guanlao moved for the approval of the measure and was duly seconded by Rep. Estrella
who then moved that members present be made co-authors of the bill.

Rep. Guanlao further moved to have the two bills consolidated and be approved by the
Committee.

Then the Body approved the motion of Rep. Estrella and the consolidation and approval of the
measure. The Chair carried the motion of Rep. Estrella and proceeded to tackle the next agenda.

Deliberation on House Resolution 301, directing the Department of Agriculture to immediately stop
importation of choice cuts ( frozen chicken leg quarters)

‘The Chair recognized Rep. Estrella who then informed the Body that the hog industry is basically

composed of 30% af commercial farms and the remaining 70%, the backyard raisers. He further said that

almost 12 Billion Pesos worth of pork meat and 17 Billion Pesos worth of chicken meat enter the country
proper documentation.


He then expressed his apprehension for the DA’s refusal to give the Committee the list of the
allottees of the Minimum Access Volume (MAV). Under the MAV allocation, DA is authorized to allocate
the importation the said meats. He further said that DA should look into the importation of junk meats for
these might be used in technical smuggling or misdeclaration.

Rep. Estrella also said that the DA has no capability in checking compliance to phytosanitary
requirement. He stressed that DA must put up a laboratory to check if the imported meats are fit for
human consumption.

The Chair recognized the author, Rep. Palmones who then expressed cancer that the livestock
industry can no longer sustain the damage done by the entry of imported meats in the country, especially
in same areas in Luzon, Visayas and Mindanao. He also alarmed the Body that the marking of the imported
meats indicated that the hag was slaughtered in 2008.He also said that imparted meats should not be sold
in the public markets. Only large meat processors are allowed to used imported meats because they have
big cold storage facilities.

Rep. Estrella then seiterated his request for the DA to submit the list of MAV allottees and the
breakdown of the volumes they are allowed to import.

‘The Chair recognized Rep. Briones. According to Rep. Briones, the livestock industry is losing by
‘about 850 Million peso per month on pork alone and yet the DA still allows importation of the said meat.
He even alleged that the Bureau of Animal Industry (BAl) of the DA has allowed misdeclaration or technical
smuggling,

Rep. Briones also said that over importation took place during the previous administration. And to
his surprise, 14 Million kilos entered the country from October to November 2020. tt even surpassed the
volume of imported meats in the previous administration.

At this point, Rep. Villafuerte suggested three points on how to deal with the problem; first, the
competitiveness that the country has and on how to improve said competitiveness; second, is to look into
the misdeclaration and find evidence of the same; third, the rule of the World Trade Organization (WTO) in
tariffication standpoint ~ if the government can increase the tariff as a barrier or reduce the same and
increase whatever domestic taxes to discourage importations.

At this juncture, the Chair directed Mr. Rolando Tambago (President of Central Visayas Pork
Producers) ta make a powerpoint presentation on the issues at hand.

Mr. Tambago pointed out that Cebu has the biggest volume of imported meats. The importers can
even sell as low as 85 pesos per kilo which is almost half of the local price of 130 pesos per kilo. He
expressed apprehension that these imported meats have been proliferating in the wet markets that
contamination is likely to happen. He then stressed that the government should regulate these imported
meats. These meats should only ga to big meat processors and should not be sold in the public markets
hecause our public markets do not have enough storage facilities and the same may pose health hazards to
the consuming public.

Mr. Tambago further cited statistics that shows a constant increase of meat importation from 2005,
to 2009. He also said that the influx of meat by-products is an added agany to their worsening problem.

___He then expressed concem over the decline of the number of backyard raisers by about $0%
which is very alarming to the livestock industry. Mr. Tambago sai¢ that 60 thousand families will be


affected bry the problem. He then appealed to the government to monitor and regulate the importation of
pork and employ an immediate remedy to curb the situation.

‘At this point, the Chair recognized Mr. San Diego from the United Broiler Raisers Association.
‘According to Mr, San Diego, since 2003 when the bird flu erupted in China, the BAI has never issued an
import permit for from China, but the same are openly sold in the supermarkets.

Mr, San Diego stressed that the local industry can never be competitive with the leg quarters from
the USA and Canada because the same are by-products of said countries. The landed cost of said leg
quarters is 45 pesos - an amount which is barely equivalent to the cost of their feeds. He also informed the
Body that they are encouraging the DA to file dumping cases against USA and Canada.

He further stressed that the out-quota is 40%. Witout the MAY, the industry is protected with the
Special Safeguard or $SG. When the landed cost of chicken products is below 93 pesos, the government
adds tariff to equate the ceiling price of 93 pesos.

At this point, the Chair recognized Mr. Jesus Cham, President of Meat Importers and Traders
Association. Mr. Cham stressed the existence of RA 8178 — a commitment of the Philippines to World Trade
Organization where the Philippines became a signatory to the General Agreement on Tariff and Trade.
Under the Uruguay Round, the Philippines agreed to open its agricultural market to ather WTO member
countries promising among others a zero-rate tariff on all agricultural products by 2004

At this point, Rep. Escudero expressed concer in the selling of imported meats in the marketplace
without refrigerated stalls. He said that doing the same is tantamount to suicide. The practice of selling
these imported meats is like inviting salmonelosis.

‘The Chair recognized Rep, Estrella, Rep. Estrella shared to the Body that he attended the FAO
meeting in Italy together with the Chair and other members of Committee. He said that ten years from
now, there will be food insecurity and an abrupt increase of food prices from 50 to 100 percent. Worst,
exporting countries may reduce or even stop exporting their own products to feed their own people.

At this point, Rep. Villafuerte proposed the following remedies; first, to look into the smuggling
aspect and provide stricter criminal and civil penalties; second, the sanitary and phyto-sanitary
requirements which give certain leeway as far as the WTO agreements are concerned; third, Congress can
pass a law prohibiting importation of inorganic or chemically fed and grown meat; lastly, the executive
action of anti-dumping provisions — an executive prerogative reviewing an existing situation. This may
include proper classification and segmentation of tariff.

Rep. Villafuerte further stressed that there is no impediment to legislating prohibition of imported
meats to be sold in the public markets. It is purportedty earmarked only for manufacturing or processing
sector.

The Chair recognized Mr. tnciong. Mr. Inciong said that Canada and US have never stopped
subsidizing their agriculture sectar. He further said that there is a deadlock in the Doha round. USA and
Canada are insisting on market liberalization and yet they do not want to give up their subsidies. He then
suggested that the Body will consider reviewing laws on subsidies and the anti-dumping and counter-
vailing laws of the country.

At this point, Mr. Inciong informed the Body that they are requesting the DA not to extend the
MAV. He further said that the executive can cancel the said extension so that the industry can avail of the
trade remedies of the special safeguards. In reply, Usec. Serrano said that the in-quota has already


equalized with the out-quota by end of 2004. But the previous administration made a decision and put the
tariff collections for the MAV to the ACEF.

The Chair recognized Mr. Buencamino. According to Mr. Buencamino, Congress cannot ban the
entry of these imported meats because there is already an existing contract to this effect and banning the
same would negate from the agreement. He also informed the Committee that aside from the 40% duty
the importers are paying for aut-quota, the SSG still imposed another 33 pesos.

At this point, Rep. Padilla said that HR 301 deserves a full-blown hearing because the issues are far-
reaching and Congress must be ready to come-up with some arguments and resolutions.

At this juncture, Rep. Estrella moved for the adjournment of the hearing.

At this point. Mr. Bacay
the public markets, NMIS has submitted its proposal to the DA Secretary and it is now with the DA legal

department. He further said that the inspection of meat products in the marketplace is lodged with the
focal government units not with the NMIS.

ADJOURNMENT

‘There are no other matters to discuss, the meeting was adjourned at 4:32 pm.

Prepared by :

Corrected by :

Committee Secretary

Noted by :

HON. MARK LLANDRO L. MENDOZA
Chairman


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metra Manita
Fifteenth Congress
First Regular Session

MINUTES OF THE EXECUTIVE MEETING CONDUCTED BY THE COMMITTEE ON AGRICULTURE AND
FOOD ON 08 DECEMBER 2010 AT CONFERENCE RM. 6 AT 1:30 PM, MITRA BUILDING, HOUSE OF
REPRESENTATIVES, DILIMAN, QUEZON CITY.

‘Members Present :

Rep. Carlos M. Padilla

Rep. Agapito H. Guanlao
Rep. Salvador H. Escudero It
Rep. Jesus N. Sacdalan

Rep. Jeci A. Lapus

Rep. Cresente C, Paez

Authors Present :

Rep. Mark Llandro L. Mendoza
Rep. Henry Pryde Teves

L CALL TO ORDER/ROLL CALL

‘The meeting was called to order at 2:02 pm. Then, a motion to dispense the calling of the
Il was hereby approved.

NN, DELIBERATIONS/ACTIONS ON MEASURES

‘The Chair informed the Body that the Executive Meeting will tackle the approval of three
substitute bills of the following measures, to wit;

1. The Corporate Farming Bill - this bill aims to encourage the private sector to engage in
Fice/com production to supply the rice and com requirements of their employee. This bill gives the
Private sector the opportunity to take the lead role in promoting food security;

2. The Renationalization Bill — This bill aims to revert to national government the basic
services and facilities devolved to the barangays, municipalities, cities and provinces. An Agriculture
and Fisheries Review Panel shall be created to identify the problems of the industry and to
recommend measures to enhance agricultural productivity;

3. The Agricultural and Fisheries Modemization Bill ~ This bill seeks to increase the level of
agricultural mechanization in the country, which ranks second to lowest on agricultural tractors and
the lowest on harvesters/threshers in Asia.


~~” the Chair further said Corporate Farming Bill passed 3% reading in the 14” Congress white
the Agri-Fishery Mechanization Bill has undergone workshops and technical working groups to make
it moiré relevant. The bill which the 14 Congress passed concerning the devolved agriculturists was
‘the Magna Carta for Devolved Agricultural workers which focused more on the entitlements. The
Renationalization bill is more atune with the country's thrusts for agricultural productivity.

At this juncture, Rep. Guanlao moved for the approval of the substitute bill on Corporate
Farming which was duly seconded. Then the motion was carried

‘Then Rep. Escudero move for the approval of the substitute bills on Re-nationalization of the
Devolved Agriculturists and was duly seconded. The mation was carried.

At this point, Rep. Guanlao then moved for the approval of the substitute bill on Agr+
Fisheries Mechanization which was duly seconded and the motion was carried.

Then Rep. Padilla moved that members present be made co-authors of the said bills, The
motion is carried.

Ml. ADJOURNMENT

There are no other matters to discuss, the Executive Meeting was adjourned at 42:10 pm.

Prepared by:

Ni
Super Legislative Staff Officer 11

Corrected by =

d.

OSA D. GUZMAN
Committee Secretary

Noted by :

HON. MARK LLANDRO L, MENDOZA
Chairman