Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Maz

TWENTIETH CONGRESS
First Regular Session

HOUSE BILLNO. 3466

Introduced by Representative Jan Rurik D. Padiernos, GP (Galing sa Puso) Party-List

EXPLANATORY NOTE

The Bureau of Agricultural Cooperative and Industry Development (BACID) is hereby
established to address the evolving needs of both cooperative development and the
modernization of agriculture in the Philippines. This new agency combines the focus of the
previous Bureau of Agricultural Cooperatives (BACOD) on cooperative development with an
expanded mandate to include the modernization of agriculture, including agro-processing,
market access, transportation, and logistics. This expanded mandate aims to empower
agricultural cooperatives to actively contribute to the agricultural value chain, ensuring that
farmers are adequately supported in value-added activities, ultimately helping to ensure fair
pricing, food security, and sustainable agricultural growth.

BACID shall likewise promote the clustering of smallholder farms through
cooperatives, with the objective of facilitating shared resource utilization, enhancing market
access, and improving production efficiency. This approach seeks to strengthen the agricultural
sector, promote equitable pricing mechanisms, and contribute to national food security. By
establishing BACLD, the government will create an agency that not only regulates cooperatives
but also drives their growth, market integration, and modernization, which is essential for
building a more resilient, inclusive agricultural economy in the Philippines

BACID shall inherit the cooperative development functions of the former Bureau of
Agricultural Cooperatives (BACOD) but with an expanded mandate to drive agricultural
modernization. This includes the clustering of small farms, contract growing, and agro-
processing initiatives, which are outside the scope of the Cooperative Development Authority
(CDA). While the CDA continues to focus on cooperative regulation and legal compliance,
BACID shall focus on cooperative development, market integration, and agricultural
modernization. BACID will facilitate the consolidation of small farms through cooperatives
and promote contract growing arrangements, creating a more robust agriculiural sector and
ensuring fair pricing and food security

Approval of this bill is earnestly sought.
Goad

ATTY. JAN RURIK D. PADIERNOS
GP (Galing sa Puso) Party-List


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

TWENTIETH CONGRESS
First Regular Session

House BILL No. 3466.

Introduced by Representative Jan Rurik D. Padiernos, GP (Galing sa Puso) Party-List

AN ACT
ESTABLISHING THE BUREAU OF AGRICULTURAL COOPERATIVE AND
INDUSTRY DEVELOPMENT (BACID), DEFINING ITS POWERS AND
FUNCTIONS, AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title. - This Act shall be known as the "Agricultural Cooperative
and Industry Development Act of 2025."

SEC. 2. Declaration of Policy. - It is the policy of the State to promote the growth and
development of the agricultural sector while ensuring the development, empowerment, and
integration of technological advancements in agricultural cooperatives.

Recognizing the vital role of cooperatives in rural development, the State commits to
provide agricultural cooperatives with the necessary tools, infrastructure, and support to enable
them to engage in value-added agricultural activities, such as agro-processing, transportation,
logistics, and market integration. This effort is designed to allow farmers to increase their
income, participate in both local and global markets, and ultimately contribute to achieving fair
and equitable prices for both farmers and consumers.

SEC. 3. Creation of the Bureau of Agricultural Cooperative and Industry
Development (BACID). - BACID is hereby established under the Department of Agriculture
(DA). BACID shall have a dual mandate: first, to support cooperative development, and
second, to drive the modernization of agriculture through agro-processing, logistics
development, contract growing, and farm consolidation. BACLD builds upon the functions of
the Bureau of Agricultural Cooperatives (BACOD), but expands its focus to include agriculture
modernization, and value-added agricultural activities, which are not covered by CDA’s
mandate.

SEC. 4, Mandates of Bureau of Agricultural Cooperative and Industry Development
(BACID). - BACID shall be the primary government agency responsible for the development,
‘empowerment, and modernization of agricultural cooperatives. It shall support cooperatives in
their integration into the agricultural industry, fostering sustainable growth, and ensuring
market competitiveness.


SEC. 5. Powers and Functions of Bureau of Agricultural Cooperative and Industry
Development (BACID). - BACID shall have the authority to exercise the following powers
and functions

Develop and implement comprehensive programs to assist cooperatives in their
formation, expansion, and sustainability, including offering training, technical
assistance, and financial support to promote the growth of the cooperatives

. Facilitate the adoption of innovative technologies and sustainable farming practices

through agro-processing, logistics, contract farming, and farm consolidation.
Expand cooperative participation in local and global markets, ensuring fair pricing,
stable markets, and predictable income streams for farmers.

Develop and manage partnerships between cooperatives, agribusinesses, and local
government units (LGUs) to improve agricultural productivity and ensure food
security.

Guide cooperatives to establish and strengthen value-added activities, including
processing and product branding, to increase farmer profitability

Implement training programs on cooperative governance, financial management,
and market development to enhance cooperative operations.

Facilitate contract farming arrangements between cooperatives and agribusinesses,
securing stable markets and providing necessary resources and technical support to
farmers.

Support the clustering and consolidation of small farms through cooperatives to
improve efficiency, reduce costs, and increase bargaining power.

Facilitate access to loans, grants, and subsidies for cooperatives to modernize
infrastructure, including processing plants, storage, and transportation networks.
Oversee the compliance of cooperatives with industry standards and best
practices, ensuring environmental sustainability and operational efficiency.

SEC. 6. Cooperation Between Bureau of Agricultural Cooperative and Industry
Development (BACID) and Cooperative Development Authority (CDA), - BACID and CDA

shall work

together to promote cooperative development and agricultural consolidation. CDA

will handle regulation, compliance, and governance, while BACID will focus on modernizing
agriculture, including clustering small farms and supporting contract growing,

SEC. 7. Organizational Structure and Composition of the Board of Administrators
of BACID - The Authority shall be governed by a Board of Administrators consisting of a
Chairman and six (6) members to be appointed by the President. The Board consist of the

following.

a. Chairman, — The Chairman shall serve as the Chief Executive Officer of the Board.
The Chairman must have demonstrated leadership and technical expertise in
cooperative development, agriculture, public policy, or organizational management.

b. Members. — The six (6) Members of the Board shall be appointed by the President,
upon endorsement or nomination by the relevant agencies or sectors, as follows:

One (1) representative from the cooperative sector, endorsed by the Cooperative
Development Authority (CDA), who has at least five (5) years of experience in
managing or advising cooperatives engaged in agriculture, agribusiness, or
community development;

One (1) representative from the private sector, with background in logistics,
agritech, market development, or finance, nominated by the Department of
Trade and Industry (DTI),


iii, _ One (1) representative from the academe, with expertise in rural development,
agricultural economics, or cooperative systems, to be nominated by the
‘Commission on Higher Education (CHED),

iv. One (1) representative from a national farmers’ or fisherfolk organization,
endorsed by the Department of Agriculture (DA);

v. One (1) nominee of the Department of Agriculture (DA), preferably with
experience in policy implementation or program coordination in agricultural
modernization or cooperative clustering;

vi. One (1) nominee of the Cooperative Development Authority (CDA), with
relevant technical, legal, or regulatory background.

c. Term, — All members of the Board shall serve a term of three (3) years, renewable
for one (1) additional term, and shall serve in a full-time capacity. To ensure continuity,
the initial appointees shall serve staggered terms to be determined by the President

4. Qualifications and Disqualifications. — All members must be of proven integrity,
competence, and independence, with no conflict of interest in the performance of their
duties. They shall not, during their tenure, engage in any activity or business that may
conflict with the mandate of the Board.

e. Gender and Regional Representation. — In appointing members to the Board, the
President shall ensure, as far as practicable, gender balance and regional representation,
particularly from underrepresented or marginalized agricultural communities.

SEC. 8. Appropriations. - To carry out the provisions of this Act, an initial
appropriation is hereby authorized in the General Appropriations Act (GAA). Subsequent
budgets shall be provided based on the Bureau’s needs and performance, as determined by the
DA. The Bureau may also seek funding from international organizations, private sector
partnerships, and other sources of financial support.

SEC. 9. Implementing Rules and Regulations. - The Department of Agriculture, in
consultation with relevant stakeholders, shall issue the necessary rules and regulations for the
effective implementation of this Act within ninety (90) days from its approval

SEC. 10. Repealing Clause. - All laws, decrees, executive orders, or parts thereof
inconsistent with the provisions of this Act are hereby repealed, amended, or modified
accordingly.

SEC. 11. Separability Clause. If any provision of this Act is declared unconstitutional
or invalid by a competent court, the remaining provisions shall remain in full force and effect.

SEC. 12. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,