Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS.
First Regular Session

ey
H.B.No._-®

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

Philippine agriculture is in crisis. The country has continually faced the problem of high
food cost; it has the highest food prices among the ASEAN countries. And most recently, it
experienced shortage of its most important staple food: rice. The high cost of food, being wage
goods, has affected the competitiveness of the country’s industry specially those in export.
Compounding the problem is high rural poverty.

Agriculture and Fisheries extension is central to growth and development of the
agriculture and fisheries sector. How a country manages its agriculture knowledge through its
extension services is crucial to agriculture growth and development. Knowledge at the hands of
the producers empowers and gives them the competitive edge. Extension, along with Research

and Development (R&D), has the highest return of investment (ROI) among policy instruments.
Therefore, it is worth investing on it.

Agriculture growth should come from knowledge-intensive practices in agriculture such
as crop intensification. However, knowledge intensive agriculture (KIA) is dependent on a
dynamic, responsive agriculture and fisheries extension with strong linkage to knowledge
generation. Unfortunately, Agriculture and Fisheries Extension Services (AFES) in the
Philippines face serious problems that affect its efficiency and effectiveness. The extension unit
is highly fragmented, lacks a coherent direction, demoralized and composed of aging personnel
who has not fully recovered from the effects of decentralization, weak research-extension
linkage, underinvestment, and highly politicized structure among others.

The proposed Agriculture and Fisheries Extension bill will address the current problems
and more,


The bill seeks to:

1) 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
ie., the province;

2) Making the national government pay for the salaries and wages of extension
personnel under the administrative direction of the provincial government;

3) Professionalizing and standardizing the salaries and wages of the Local Government
Unit (LGU) extension personnel to that of equivalent positions in the national
government;

4) Creating 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.

Hence, the approval of this bill is earnestly sought.

big
JUAN coca }0 “SONNY” M. ANGARA
Representative

Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

248
H.B.No._" "©

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

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

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

ARTICLE 1. GENERAL PROVISIONS

SECTION 1. Short Title. This Act shall be known as the "Agriculture and Fisheries
Extension Act of 2010."

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 shali 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 alll 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 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 rural 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; ©) Rational Use of Resources and Sustainable Development; d) Global
Competitiveness; and e) People Empowerment.

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

1. "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;

2


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 institutions that affect their lives;
it involves providing authority, responsibility, and information to people directly engaged
on agriculture and fishery production, primarily at the level of the farmers, fisher folk 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 Filipinos in substantial quantity,
ensuring the availability and affordability of safe and nutritious food to all, either through
ocal 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;

42."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, fisher folk, growers, seed
producers, women, and youth;

17,"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 control and animal
health.

SEC. 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.

SEC. 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

¢) 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.

4


‘SEC. 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 I! Structure and Organization

SEC. 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 a 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 modernization.

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

SEC. 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 an fisheries of the Department through
a system of partnerships that may include, but not be limited to, the (Local Government Units)
LGUs, 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;

h) 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.

SEC. 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

SEC. 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;

(3) 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

(6) Set guidelines in the use of services and facilities, collection of fees and in the

utilization of income.


SEC. 11. Composition of the Council for Extension Research Development
Agriculture and Fisheries (CERDAF). The Undersecretary for Policy and Planning of the DA
shall 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;
li. Union of Local Authorities of the Philippines (ULAP);

(3) Four (4) CSO representatives from the rural youth, rural women, and farmer, and

fisher folk 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);

(6) Representatives from scientific/professional organizational societies;

(6) One representative each from the following national professional organizations: i)

agriculturists; ii) agricultural engineers; i) fishery technologists and iv) veterinarians.

SEC, 12. 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 Institute (AT!) plantilla positions but in no case
shall it exceed 85% of the plantilla positions in 2008

ARTICLE III Organization of the Local Government Extension Services

SEC. 13. Province as the LGU Unit of Operation for Agriculture & Fisheries
Extension. To achieve efficiency and to provide more responsive 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

7


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. Congress and serve as the basis for the continuation or
Modification of the grants-in aid.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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


SEC. 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 Dept 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 (ATI),
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

SEC. 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

SEC. 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.

SEC. 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.

SEC. 24. Separability Clause. If any provision of this Act is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain valid and subsisting,


SEC. 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,

10