Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

‘yo, 405

HOUSE BILL'NO.

Introduced by Honorable Representatives
ARLENE D. BROSAS (Gabriela Women’s Party),
FRANCE L. CASTRO (ACT Teachers Partylist),
and RAOUL DANNIEL A. MANUEL (Kabataan Partylist)

THE RICE INDUSTRY DEVELOPMENT ACT

EXPLANATORY NOTE

Food security is a fundamental collective people's right, based on the right to food, as
part of the right to an adequate standard of living, universally accepted by the
Universal Declaration of Human Rights, Intemational Covenant on Economic, Social
and Cultural Rights, and succeeding declarations for the eradication of hunger and
malnutrition. In the Philippines, rice is the staple food; thus, the threat to this important
food item is a threat to national food security. Filipino rice farmers and poor consumers
mutually aspire the realization of the right to accessible, safe, and affordable food

Rice self-sufficiency and food security is the central pillar of the country's food security
Around 96% of the population are rice consumers, while production involves
approximately 3.8 million rice farmers cultivating 4.7 million hectares. Rice production
could be considered the major economic activity in the country's rural population.

Amid the political, economic, and even cultural significance of the rice-productive
sphere in society, the Republic Act 11203 Rice Liberalization Law was enacted by the
Duterte administration in February 2019. Proponents claimed it was the solution to the
2018 rice crisis and a country's commitment to the World Trade Organization (WTO),
It was enacted amid broad opposition from Filipino rice farmers and poor consumer
families. The law only benefited the private sector, big and rich importers, and traders.
Thus, the law should be declared anti-Filipino, anti-poor, and anti-farmer.

At present, the law's failure is undisputed, seeing the influx of imported rice, which
caused massive bankruptcies among rice farmers due to depressed farm gate prices.
Peasant organizations estimated losses from 2019 to 2020 reached P386 billion, and
farm gate prices continue to fall from P20 per kilo to P15 and lower. Amid more than
3 million metric tons of imported rice entering the local market, the retail price never


dropped to P25 per kilo, the promised level of the law's proponents. In 2021, the retail
price of the regular-milled rice was P42 per kilo. There should be a national
declaration, aside from its detrimental traits to producers and consumers, that the law
isa failure, warranting a repeal and replacement by an alternative policy that genuinely
aims to build the foundations for attaining national food security based on self-
sufficiency.

The rice industry is in a vicious cycle of crisis, primarily due to the absence of
guarantee or security of rice farmers’ tenure on the land, which leads to their untimely
displacement by landowners, goverment, or any private entities; thus, leading to a
disrupted cycle of rice production. It has been a chronic trait of society that Filipino
farmers’ rights to land, livelihood, food, and an adequate standard of living are
systematically violated, thus generating an erratic state of food production. It should
also be noted that the usual candidate for land-use conversion was rice lands, leading
to shrinkage in productive lands.

Second, that past and present policies in agriculture were of liberalization,
characteristic of a country whose agriculture sector is chained to the world market,
with the past and present administration subservient to the prescriptions of
international bodies, with the latest was the World Trade Organization's command to
countries of "free flow" of goods, including the tariffication of imported rice, thus, the
Rice Liberalization Law. Coinciding this was the token production subsidies for local
production, distinctive of a "hands-off" policy or state non-intervention, which is a core
principle of liberalization

The old formula adopted by the Masagana 99 program in the framework of the Green
Revolution during the Marcos dictatorship initially subsidized farmers to enable them
to utilize the costly agrochemical inputs peddled by foreign monopoly agro-corporation
partners of the International Rice Research Institute (IRRI); and then subsequently,
stripping them off much-needed government support, and abandoning them into
bankruptcies and displacement from lands; is defunct. It should not be categorized as
government subsidizing as it was designed to end up as profits of the foreign
monopoly agro-corporations, and farmers served only as a conduit.

Third, was that the productive forces in rice production remained backward. This
indicates an economy without an industrial base but an addict of import-dependence,
including farm equipment. Mechanized farming in the country remained a fantasy, as
the escorting costs were beyond the financial capacity of an ordinary rice farmer. Even
those who own hand tractors are now succumbing to the oil price crisis; thus, their
reliable friend "Malakas” the carabao is always at bay to keep the cycle of production
spinning. Even the basic harvest equipment for cutting and threshing palay, and post-
harvest facilities for drying and storage, remain scarce. Thus, costs chop off a chunk
from the gross income from the modest volume of harvest.


Irrigation development has yet to reach 100%, and at 65% in modern-day 2021. It
appeared that ancient civilizations in the Middle East fared better in constructing
irrigation systems than the present Philippine government, as it was a historical key
to their significant developments. Without adequate irrigation, rice farmers shoulder
the added costs of fueling motor pumps, undermining the cost-benefit ratio of
Production. Moreover, maintenance of these pumps still adds to the costs.

Fourth, trade is dominated by monopoly traders. Prior to the Rice Liberalization Law
regime, farm gate prices remained depressed, especially if the harvest was abundant
in a locality. This was enabled as local procurement of the National Food Authority
(NFA) significantly dwindled to around 2% to 5% of the country's total palay
production, leading to an increased bargaining power of profit-hungry traders. The
inadequate intervention of the government in marketing remained a significant gap
affecting both the producers and consumers.

With these fundamental areas of concer, the country's rice crisis appears unsolvable.
However, the authors of this bill, the Rice Industry Development Act (RIDA), beg to
disagree and pledge that with genuine commitment, national food security based on
self-sufficiency is attainable in the country. This bill proposes a massive overhaul of
the rice industry, with the government paving the way with adequate public
investment, support, and mechanisms and infrastructure, guaranteeing unimpeded
and encouraged production by Filipino rice farmers. The core programs, all in the
name of boosting productivity and achieving self-sufficiency, are proposed to be
allotted P185 billion for the three-year implementation. Complementing this, the NFA
is proposed to be allocated with P310 billion for three years to enable it to procure at
least 20% of the total palay production at at least P20 per kilo farm gate price and
offer it to poor consumers at an affordable price of P25 per kilo. This is the very
essence of national food security based on self-sufficiency, benefiting both producers
and consumers.

This bill was earlier crafted by the Anakpawis Party-list, Kilusang Magbubukid ng
Pilipinas, Amihan National Federation, and various peasant organizations and
consumer groups belonging to the Bantay Bigas rice watch group, and its enactment
was demanded by the 3rd National People's Rice Congress held in April 2019 in
Quezon City. Moreover, Amihan and Bantay Bigas led a petition signing for
endorsement in 2019 that garnered more than 80,000 signatures. The House of
Representatives, and the whole legislative branch, should be sensible enough to heed
the legitimate pleas of the Filipino rice farmers and poor consumers: to repeal the
Republic Act 11203 Rice Liberalization Law and enact the Rice Industry Development
Act.


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

NE@. BROSAS
Gdbriela Women’s Party



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILENO. 405

Introduced by Honorable Representatives
ARLENE D. BROSAS (Gabriela Women’s Party),
FRANCE L. CASTRO (ACT Teachers Partylist),
and RAOUL DANNIEL A. MANUEL (Kabataan Partylist)

THE RICE INDUSTRY DEVELOPMENT ACT

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

CHAPTER |
Title, State Policies and Objectives
SECTION 1. Title. - This Act shall be known as The Rice Industry Development Act of 2022

‘SECTION 2. State Policies and Principles. — The State holds that food security forms part
of the fundamental rights of the Filipino people.

Upon this principle, it is the policy of the State to give the highest priority to the
development of the national rice industry and, in line with such prioritization, to allocate
the public resources and funds necessary to enhance to the fullest the productive
capability ofthe rice industry, restructure its distribution and marketing linkages in order
to make the industry sustainable, achieve for the country food security based on food
self-reliance and self-sufficiency, increase the income of rice farmers and improve their
living conditions, and ensure the accessibility and affordability of rice to the consuming
Population.

Rice importation is injurious to our rice farmers, weakens our rice industry, undermines
our collective efforts to attain food security, and harmful to the national economy in the
long run. To avert these negative effects, the State rejects any policy of giving first
preference to rice importation in fulfilling the needs of the domestic market. In lieu thereof,
it is the policy of the State to fulfill domestic consumption requirements by nurturing our
rice farmers towards enhancing their productive capability.

The State sees land use conversion as a serious threat to the sustainability of our
agricultural food base and a clear and present danger to our food security. To protect our
rice industry and to remove the danger to our food security and in order to align all efforts


towards achieving food self-reliance, itis the policy of the State to prohibit the conversion
and reclassification of rice lands to other uses.

The State recognizes the indispensable role of our rice farmers in attaining food security
based on food self-reliance and self-sufficiency. It is therefore the policy of the State to
uphold and promote their welfare and to protect their security of tenure and other rights as
farmers.

Finally, it is the policy of the State to develop a national industry that is responsive to the
welfare and interest of rice farmers and consumers and complements the well-rounded
development of agriculture and the local rice industry.

SECTION 3. Objectives. — This Act has the following objectives:

a) To develop within a mandated fixed schedule the domestic rice industry and increase
its productivity toward attaining food security based on food self-reliance and self-
sufficiency through:

1, the institutionalization of the provision of necessary and auxiliary production
support program and services to rice farmers;

2. the completion of the infrastructure and facilities requirements for developing the
rice industry; and

3. the creation of a policy and legal environment for the protection of rice farmers and
the rice industry;

b) To increase the income of rice farmers, alleviate their poverty and empower them
through:

1. the implementation of transitional measures for poor-focused government support
program for the poorest rice farmers;

2. the institutionalization of viable and enhanced government price support program
for the produce of rice farmers;

3. the creation of structures that will enhance the participation of rice farmers in
decision making on matters related to the rice industry; and

4. the creation of transitory mechanisms for the eventual transfer of production and
post-harvest facilities to the control of rice farmers; and

c) To develop the rice distribution system within the framework of establishing closer
linkages between the rice farmers and consumers to ensure rice affordability for the
general public.

CHAPTER II

Definition of Terms

SECTION 4. Definition of terms. - Unless the context provides otherwise, the following
terms are used in this Act to mean as follows:


Agrarian reform beneficiaries are farmers who possess the qualifications of the
beneficiaries of the land distribution and tenurial improvement programs of Republic
‘Act 6657 otherwise known as the “Comprehensive Agrarian Reform Law of 1988".

Cartel is any group of business entities that should be otherwise in competition with
‘one another but combine with one another by acting in a way that one act complements
or supports the similar acts of others in the combination, enabling the group to
dominate the market through controlling supply and fixing the price. It is a form of
collectively rigging the market as it eliminates competition as the instrument for setting
the price of goods and commodities. In this Act, the term is used to refer to rice cartels,

Collateral-free refers to a loan condition which does not require the putting up of fixed
assets as collateral for the grant of the loan.

Credit auxiliaries refers to farmers’ organizations, rural loan associations or rural
credit cooperatives designated and authorized by the Department to act as structural
arms to help the goverment extend its credit facility to rice farmers.

Credit cooperatives refers to cooperatives extending loans, the majority of whose
members are rice farmers or whose clientele are rural-based.

Department refers to the Department of Agriculture (DA),

Engaging in cartel operations refers to entering into combination with others who
are dealing in the same product and same market and performing acts that are uniform
or complementary to the acts of others in the combination that result in artificial
shortage and in the increase of prices. In this Act, the term is used to refer to rice cartel
operations.

Farmers’ organizations refer to rice farmers’ organizations consisting of farmers who
have associated or organized themselves to achieve a common purpose or serve their
common interest.

Farm inputs include seeds, fertilizers, herbicides, pesticides and farm tools which are
used for rice production

Farm machines and equipment are mechanized tools such as hand tractors, power
tillers, sprayers, mini-harvesters, and threshers used in the various processes of rice
production and harvesting;

Farmers’ marketing cooperatives are farmers’ cooperatives which specialize in
marketing their palay produce.

Farm production cooperatives are farmers’ associations or cooperatives whose
membership is based on the labor contribution of their members.

Food security refers to a situation in which the food requirements of the people are
secured and sustained by continuous sufficient supply from local production and are
available, accessible and affordable to the consumers. Its essential element is self-
reliance through self-sufficiency in food production.


Hoarding refers to the undue accumulation by a person or combination of persons of
any basic commodity beyond his or their normal inventory levels or the unreasonable
limitation or refusal to dispose of, sell or distribute the stocks of any basic necessity or
prime commodity from the channels of reproduction, trade, commerce and industry.
Under this Act, hoarding refers specifically to rice hoarding.

Land reclassification refers to the legislative act or process of changing the
classification of lands by the local government units (LGUs).

Land-use conversion refers to the process of changing the use of the land.

Leaseholder is a farmer who works on the land and pays the landowner a fixed lease
rate.

Minimum access volume (MAV) refers to the minimum volume of foreign agricultural
products which a country must allow access to its domestic market, the volume
constituting the minimum share of foreign agricuttural products in the domestic market
based on certain proportion of the domestic consumption requirements under the rules
of the World Trade Organization (WTO).

Post-harvest facilities refer to farm facilities used in treating and handling palay after
the harvest; these include threshers, dryers, palay silos, warehouses and mills.

Price support refers to a pricing mechanism in which a portion of the price of goods
and services is paid for by the goverment.

Private commercial banks are commercial banks owned and operated by the private
sector.

Profiteering refers to the sale or offering for sale of any basic necessity or prime
commodity at a price grossly in excess of its true worth.

Production support refers to a package of goverment support to rice farmers to
enable them to procure farm inputs for rice production.

Research Program refers to the Rice Industry Development Research Program.

Rice crisis refers to a situation in which there occurs a sudden increase in the prices
of commercial rice by more than ten percent (10 %) average of the previous average
price, as determined through investigation by the National Rice Supply Security
Council using Metro Manila as reference, which make rice unaffordable to the mass of
consumers even though the rice supply is sufficient; or when the actual combined
reserved and buffer stocks of the National Food Authority is down to fifteen (15) days
and there is no incoming procurement delivery within the next ten (10) days and the
rice stocks released by the private sector into circulation in the domestic market fall for
five straight days to below ninety percent (90 %) of the daily consumption requirements
and causes a five (5) percent increase in rice retail prices, as determined by the
National Rice Supply Security Council, using Metro Manila as reference.

Rice farmer refers to a farmer who plants or produces palay.


aa. Rice smuggling is the act of importing rice or bringing any quantity of rice into the
country and transporting, storing and distributing the imported rice in violation of the
policy of this Act on importation as last option.

bb. Rural loan associations refer to associations of farmers or rural residents who
contribute equity shares and loan the shares to its members.

co. Security of tenure refers to a state of possession or exercising control over a farm
land peacefully and free from actual and potential threats of eject ment.

dd, Self-sufficiency refers to an attribute in which the food production in the country meets
the supply requirement, eliminating the need to import rice from foreign sources.

ee. Small-scale rice farmers refer to rice farmers who own no lands or whose land or
produce is not enough to meet the requirements of maintaining their families.

ff, Social guarantees refer to guarantees issued by farmers’ production cooperatives or
tural credit cooperatives accredited as credit auxiliaries under this Act, local
government officials, or priests in local parishes that vouch for the credit-worthiness of
a farmer-borrower of the Rice Production Socialized Credit Fund.

99. Socialized credit fund or facility refers to the credit facility provided by the state as
an assumed responsibilty to help rice farmers. The credit facility is to be exclusively
applied for enhancing rice production

CHAPTER Ill
Implementation Schedule

SECTION 5. Time-bound accelerated implementation. — This Act shall be implemented
within a period of three (3) years the start of which shall be reckoned affer its effectivity.

SECTION 6. Implementation plan. — Within thirty (30) days upon the effectivity of this Act,
the Department of Agriculture shall call a Rice Stakeholders Summit. The Summit shall
be participated by all stakeholders of the rice industry. It shall have the sole purpose
of formulating the Three-Year Implementation Plan for this Act based on its objectives,
core programs and implementation schedule. The Department shall ensure the
effective representation of rice farmers in the summit and its workshops.

CHAPTER IV

Beneficiary-targeting for Focused Poverty Alleviation Program

SECTION 7. Focused poverty alleviation program for special beneficiaries. - This Act
shall have all rice farmers as beneficiaries of its component programs. It also targets
the consumers as the end-use beneficiaries of its restructuring program of the
domestic rice market. However, in implementing and dispensing its component
programs, the Department is hereby mandated to give focus to alleviate the poverty of
rice farmers who operate farm units of less than three hectares and rice farmers with
annual income below the rural poverty line as periodically determined by the census



of the Philippine Statistics Authority (PSA). Such farmers shall be the special
beneficiaries of this Act.

SECTION 8. Identifying the beneficiaries of focused poverty alleviation programs. —
Within ninety (90) days after the effectivity of this Act, the PSA, in coordination with the
Department, shall conduct a census of all rice farmers in the country. The Rice Farmers
Census shall yield the following items of information:

size of farm unit;
type of soil of the rice farm;

condition of the irrigation (whether irrigated or not; if irrigated, the type of irrigation);
farm machines used;

average production cost per hectare;

source of capitalization;

seed variety used and sources;

fertilizer use and volume per hectare per cropping;
herbicide use and volume per hectare per cropping;
number of children;

Participation of children as labor force for the rice farm;
gross harvest per hectare;

cash conversion of their harvest;

monthly family expenditure; and

net income.

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The PSA shall isolate the data and information concerning the rice farmers mentioned in
the preceding section and reduced them into a report to be submitted to the Department
within thirty (30) days after the conduct of the census. The report shall serve as the basis
for the Department to identify and locate these beneficiaries for the focused poverty
alleviation program of this Act.

SECTION 9. Department database for focused poverty alleviation implementation and
‘monitoring. - The Department shall make and maintain a database of the information
contained in the PSA report. The database shall serve as the basis for the focused
pouring of resources of the component programs of this Act to alleviate the poverty of
the special beneficiaries. It shall also serve as a basis for monitoring after every harvest
the trends of income of the special beneficiaries during the implementation of this Act.
This monitoring of the income of the special beneficiaries shall form part of the
Department's periodic report to the Congressional Oversight Committee.

SECTION 10. Special beneficiaries as priority in the Production Support Program. -
The Department shall give priority to the special beneficiaries in dispensing the benefits
of the Rice Production Socialized Credit Program and the Farm Inputs Support
Program components of this Act.

SECTION 11. Organizing the poorest rice farmers into special beneficiaries farmers’
associations. - The Department shall organize the special beneficiaries on barangay
or cluster of barangay basis into farmers association. Such associations shall serve as
conduits for the delivery of program services and as partners of the Department in
implementing the focused- intervention program of this Act for the special beneficiaries.


SECTION 12 Appropriate DA personnel organization for special beneficiaries. - The
Department shall form the appropriate organization of personnel that will specialize in
attending to the needs and concems of special beneficiaries during the course of
implementing this Act.

CHAPTER V
Rice Development Zones and Rice Industry Development Councils

SECTION 13. Rice Development Zones. - To more effectively deliver the core programs
of this Act and to attain greatest impact, the Department shall identify the rice areas in
the country with the proven capability to produce above the national average or above
the requirements of the local population or highest potential for increasing rice
production and cluster them into Rice Development Zones. The clustering shall be
made up of municipalities or provinces or inter-regions and on the basis of contiguity
and connectivity. Provided, That there shall be at least two Rice Development Zones
in Luzon, Visayas and Mindanao.

SECTION 14. Rice Development Zones as centers of delivery of core programs. -
The Rice Development Zones shall serve as centers of the convergent and synergized
delivery of the core programs of this Act.

SECTION 15. Rice Industry Development Councils and functions. - There shall be in
each Rice Development Zone a Rice Industry Development Council which shall have
the principal function of synergizing the delivery of the core programs of this Act. For
this purpose, it shall convene at least twice a year.

SECTION 16. Composition of RIDCs.- The Rice Industry Development Council shall be
composed of the following:

a. a representative of the Department, preferably the Regional Director or any of its
experts on the rice industry;

a representative of special beneficiaries;

a representative of farmers’ marketing cooperatives;

a representative of rural development civil society,

a representative of rural credit cooperatives or credit unions;

a representative of rural rice women farmers;

a representative of the National Rice Food Security Council,

a representative of the National Food Authority;

a representative of the National Irrigation Administration;

a representative of the Department of Public Works and Highways;

a representative of Department of Science and Technology;

a representative of the Department of Interior and Local Government;
a representative of the Local Govemment Unit;

a representative of the Land Bank of the Philippines;

a representative of Philippine Rice Research Institute; and

a representative of State Colleges and Universities.

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The Rice Industry Development Councils shall be chaired by the representative of the
Department.

SECTION 17. Rice Development Indicators in Rice Development Zones and
reporting. - The Rice industry Development Councils shall periodically monitor the
implementation of the core programs of this Act by maintaining for each Rice
Development Zone a Rice Development Indicators Profile. The Profile shall be
submitted bi-annually to the Secretary of the Department. The Rice Development
Indicators shall include the following items of information:

total number of rice farmers and the actual size of their rice farms;

total hectarage of rice farms;

number of cropping seasons;

total hectarage of rice farms actually planted in the current cropping season;

current production costs per hectare as against previous production costs;

indicative production target per hectare for the cropping season;

current total harvest as against the previous harvest;

current average harvest per hectare as against the previous average;

indicative production shortfall as against the indicative production target;

segregated usage rate among rice farmers, farmers’ organizations and accredited

credit auxiliaries of the RPSCF;

k. number of private commercial banks which participated in the socialized credit
program;

|. actual number of farm inputs distributed, segregated as to organic and non-
organic, and actual number of rice farmer-recipients;

m, actual number of irrigation facilities segregated as to old and new;

n. actual number of post-harvest facilities segregated as to old and new;

°.

P.

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actual number of rice farmers with access to irrigation;
‘actual number of rice farmers with access to threshing, drying and rice storage and
‘other common service facilities;

q. accomplishment status of irrigation and post-harvest facilities development
projects;

r. number of cooperatives actually organized and their operational status;

forms of extension services and the number of participating state colleges and

universities and actual beneficiaries;

price set by the NFA in accordance with Section of this Act;

comparative prevailing price of private grain traders;

total number of rice farmers who sold their palay to NFA; and

current per capita income of rice farmers as against the previous.

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The Secretary of the Department shall consolidate the Profiles submitted by the Rice
Industry Development Councils and reduce them into an executive report to be submitted
to the Congressional Oversight Committee and the Office of the President within fifteen
(15) days from the submission from the Rice Industry Development Councils, with copy
furnish for the National Rice Supply Security Council as created under Section 98 hereof.
‘The Department shall attach the Profiles of each Rice Development Zone to the executive
report.


CHAPTER VI
Core Programs and Components

SECTION 18. Core programs. - To attain the objectives of this Act, it shall have the
following core programs:

a. Production support program;

b. Focused-poverty alleviation program for the poorest rice farmers

c. Accelerated infrastructure development program for irrigation and post-harvest

facilities;

Research and development and auxiliary support and extension services program;

e. Rice lands and rice industry protection program;

f, Strengthening of the NFA for the implementation of enhanced government price
support program for farmers and consumers; and

g. Rice farmers empowerment program;

a

CHAPTER VII
Production Support Program

SECTION 19. _Institutionalization of production support program. - This Act hereby
institutionalizes a holistic production support program for rice farmers. The production
‘support program shall consist of the following:

Rice Production Socialized Credit Program;
Farm inputs Support Program;

Provision of power tillers and threshers; and
Crop insurance.

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SECTION 20. Rice Production Socialized Credit Program (RPSCP). - A socialized
credit program is hereby established for rice farmers to enable them to have access to
economic resources necessary for rice production

For this purpose, the amount of Twenty-Five Billion Pesos (P25 B) is hereby appropriated
and constituted into a fund which shall be called Rice Production Socialized Credit Fund
(RPSCF). The RPSCF shall be made available to farmers and farmers’ organizations or
farm production cooperatives as a credit facility for the exclusive purpose of rice production
and rice production-related undertakings.

SECTION 21. RPSCF beneficiaries. - The loan program of the RPSCF shall be extended
only to the following:

a. Rice farmers;
b. Farmers’ organizations engaged in rice production or marketing; and
. Farmers’ cooperatives engaged in rice production or marketing

In extending loans to individual rice farmers, the RPSCF shall give priority to the special
beneficiaries mentioned in Section 7 of this Act, the poorest rice farmers as determined by


the Rice Farmers Survey. The amount of Ten Billion Pesos (P10 B) of the RPSCF shall
be devoted for this purpose.

It shall also give priority to rice farmers who intend to use the loan for organic rice farming

In no case shall the loan amount for each farmers’ organization or farmers’ cooperatives
exceed Ten Million Pesos (P10,000,000.00)

SECTION 22. Application of RPSCF loan. - Rice farmers, farmers’ organizations and
farmers’ production cooperatives shail apply the loan they availed of from the RPSCF
to the following undertakings:

5.

a. purchase of seeds and other farm inputs;

b. purchase of draft animats;

¢. purchase of farm equipment and machines such as power tillers, hand-held
harvesters, threshers, and other similar equipment;

d. purchase or construction of irrigation equipment such as water pumps and tube
wells; and

e. construction of dryers or purchase of drying machines.

In the case of farmers’ organizations and farm production cooperatives, the loans may also
be applied to the following:

purchase of farm machinery for cooperative use;

construction of water impounding systems for irrigating rice farms;
construction of drying facilities;

construction of cooperative palay warehouse;

seed capital for establishing cooperatives for marketing of palay;
construction of communal compost pit for making organic fertilizers; and
financing the putting up of industries that produce palay-derivative products.

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In no case shall the RPSCF be extended to borrowers for purposes not related to rice
production

The RPSCF shall be deposited with and administered by the Land Bank of the Philippines
(LBP). All repayments from farmer-borrowers, interest eamings and income on the deposit
shall accrue to the RPSCF.

SECTION 23. Interest Rate on Loan. - The interest rate for the loans to be made
available to rice farmers under the RPSCF shall not be more than five percent (5 %)
of the principal amount.

SECTION 24. Collateral-free loan and provision against foreclosure. — The loans to
be made available to individual rice farmers under the RPSCP shall be collateral-free.
The LBP shall make use of social guarantees as defined in Section 4, (ff) hereof. In
cases when the farmer-borrowers fail to pay their loans, the LBP shall observe the
provisions of Section 28 hereof.

SECTION 25. Farmers’ organizations, rural loan associations, and credit
cooperatives as credit auxiliaries of the RPSCF. - The Department shall have the
authority to accredit farmers’ organizations, rural loan associations or credit


cooperatives as credit auxiliaries of the RPSCF: Provided, that such farmers’
organizations, rural loan associations, and credit cooperatives are duly registered with
the Cooperative Development Authority (CDA)

Farmers’ organizations, rural loan associations and credit cooperatives accredited as
credit auxiliaries of the RPSCF can access the RPSCF for the maximum amount of Ten
Million Pesos (P10,000,000.00) at three percent (3 %) interest rate for extending credit to
their members who are rice farmers: Provided, that they shall not charge their members
more than Eight percent (8 %); Provided further, that the amount from the RPSCF to be
made accessible to credit auxiliaries shall not exceed Twenty per cent (20 %) of the
RPSCF.

The Department, in consultation with the LBP and representatives of farmers’
organizations, rural loan associations and credit cooperatives, shall formulate the criteria,
standards and procedures for the accreditation and participation of farmers’ organizations,
rural loan associations and credit cooperatives as credit auxiliaries of the RPSCF.

The interest collected from the credit auxiliaries shall accrue to the RPSCF and not to the
capital fund of the accredited credit auxiliaries.

Farmers’ organizations, rural loan associations and credit cooperatives accredited as
credit auxiliaries of the RPSCF may extend loans under the RPSCF to non-members as
long as the applicants are rice farmers.

SECTION 26. Simplifying the procedure for loan dispensation. - The RPSCP shall
have a simplified procedure for filing, processing and approval to make it accessible,
easy, quickly available and at minimum costs to rice farmers. The LBP, in consultation
with the Department, shall formulate the guidelines for this purpose.

SECTION 27. Incentives for participating private commercial banks. — Private
commercial banks which extend production loans to rice farmers with interest rate
provided in Sections 10 and 11 hereof shall be entitled to tax credits of fifteen per cent
(15%) of the amount of the capital they devoted to rice production loans. Private
commercial banks which continue to extend production loans to rice farmers after the
end of the three (3) year implementation period of this Act shall continue enjoying tax
credits at ten per cent (10 %) of the amount of the capital they devoted to rice
production loans.

SECTION 28. Non-payment of loans. — In case of failure of an individual rice farmer to
pay the loan, the LBP or the credit auxiliaries from which the farmer incurred the loan
‘shall automatically renegotiate or restructure the loan of the indebted farmer until the
loan is fully paid. The LBP shall formulate the guidelines for this purpose: Provided,
that in no case shall the restructuring operate to effect the loss or foreclosure of the
land of the indebted farmer nor shall it give effect to the blacklisting or disqualification
of the indebted farmer from being a beneficiary of the RPSCP.

Credit auxiliaries from which the farmer incurred the loan may also extend assistance to
the indebted farmer so that the indebted farmer can pay the loan without affecting his
necessary family expenses. The assistance shall include, but shall not be limited to,
allowing at reduced cost the indebted farmer to use the farm implements, working animals
and farm inputs belonging to the credit auxiliaries.


SECTION 29. Automatic moratorium. - In times of natural or man-made calamities, the
LBP, the credit auxiliaries and private commercial banks who extend rice production
loans to farmers shall automatically extend a moratorium of six (6) months on the
payment of loans and their interests. Excepting the interests, they shall not impose any
other penatties and charges. The moratorium shall cover the entire area declared as
under a state of calamity by the President.

SECTION 30. Farm Inputs Support Program. — Upon the effectivity of this Act, the
Department shall institutionalize a Farm Inputs Support Program that shall consist of
distributing to rice farmers, farmers organization and farmers producers cooperatives
farm inputs at discounted prices. The farm inputs shall include seeds, fertilizers,
herbicides, farm tools and other necessaries for rice production.

SECTION 31. Organic rice farming. — In implementing the Farm Inputs Support
Program, the Department shall give emphasis to procuring and distributing the farm
inputs with the primary consideration of promoting organic rice farming in progression
it shall conduct massive training of rice farmers on the technology of organic rice
farming.

Each Rice Development Zone shall have at least one (1) pilot area for organic farming.

SECTION 32. Schedule of discount for seeds and other farm inputs. - The seeds and
other farm inputs procured by the Department shall be:

a. distributed free to the special beneficiaries as a measure of full subsid)
b. sold to all other farmers at less twenty-five per cent (25 %) of their purchase price.

The Department shall ensure that the distribution of seeds and other farm inputs to rice
farmers shall be made thirty (30) days before the start of cropping season.

SECTION 33. Seed selection and fertilizer distribution. — In the purchase and
distribution of seeds, the Department shall ensure that rice farmers shall have a wide
selection of seed varieties in accordance with the knowledge and farm practices
developed or existing in their communities.

The Department shall make full use of its database and mapping of soil types as basis in
distributing fertilizers to rice farmers. As much as practicable and according to adaptability
to the knowledge and farm practices prevalent in different areas of the country, the
distribution shall be based on the best applicability to the soil types in the area.

SECTION 34. Incentives for use of traditional varieties, organic farming and
indigenous rice farming practices. - The Department shall formulate an incentives
scheme for rice farmers who shall use traditional varieties, organic farming, and
indigenous rice farming practices.

SECTION 35. Provision of power tillers and threshers. - The Department shall
institutionalize a distribution program of power tillers and threshers to rice production
cooperatives or organizations.


SECTION 36. Crop insurance. — A portion of ten percent (10 %) of the principal amount
of the loan extended to rice farmers under the RPSCF shall be charged each rice
farmer for the full insurance coverage of his crops with the Philippine Crop Insurance
Corporation; Provided, that full crop insurance coverage shall be extended to the
special beneficiaries of this Act.

CHAPTER VIII
Accelerated Infrastructure Development Program

SECTION 37. Accelerated Infrastructure Development Program. — The Accelerated
Infrastructure Development Program shall consist of the irrigation development
program and post-harvest facilities development program. The concemed govemment
agencies responsible for implementing these programs are hereby mandated to
complete their construction and development within three (3) years as provided in
Section 5 hereof and ensure their operational sustainability, including the provision for
maintenance.

A. Accelerated Irrigation Development Program

SECTION 38. Accelerated completion of irrigation requirement. - Within ninety (90)
days upon the effectivity of this Act, the National Irrigation Authority (NIA) shall have
drawn up a Program of Implementation for the accelerated completion of the
construction of irrigation facilities and the rehabilitation of existing irrigation facilities
based on an inventory and parallel assessment of existing irrigation ‘system of the
country and taking into account the preservation of natural ecosystems, appropriate
technology and the requirements for attaining rice self-sufficiency. At the end of three
(8) years, the NIA Program of Implementation shall achieve a one-hundred percent
(100 %) irrigation of all rice lands of the country and shall include a maintenance
Program and incorporate the inventory and parallel assessment.

SECTION 39. Identifying priority areas. — In identifying priority areas for the accelerated
completion of the construction of irrigation facilities, NIA shall take into account the
following factors:

6.

areas designated as Rice Development Zones;

provinces with low irrigation development;

municipalities and areas with high density of rice farmers;

municipalities and areas with low rice productivity; and

rice areas recommended by rice farmers or farmers’ organizations or farmers’

cooperatives, agrarian reform beneficiaries who are rice farmers, farmers irrigators’

association and indigenous peoples.

g@aecn

SECTION 40. Project criteria. - For NIA to be able to complete the construction of
irrigation facilities requirement within the mandated schedule, its Program of
Implementation shall give focus on constructing medium and small-scale irrigation
facilities, small water impounding projects and communaltype irrigation or similar
facilities with low social costs but high benefits and the technical preparation of which


can be done within ninety (90) days and the construction of which can be completed
in one-hundred eighty (180) days or less.

SECTION 41. Management and administration. — The management and administration
of small-scale irrigation projects shall be tumed over to the farmer-beneficiaries
through their farmers’ associations, irrigators’ associations or farmers’ cooperatives
upon project completion: Provided, that the NIA shall shoulder the maintenance cost
and provide continuous technical support to the farmer-beneficiaries to whom the
projects would be tumed-over, Provided further, that the recipients of the turn over
shall make the facilities available to rice farmer-beneficiaries in accordance with
Republic Act 10969 or the Free Irrigation Services Act.

SECTION42 Budget allocation for accelerated irrigation infrastructure
development. — Of the funds appropriated under this Act for the accelerated irrigation
development program, eighty percent (80 %) shall be used for the construction of new
irrigation projects while the twenty percent (20 %) shall be earmarked for rehabilitation
and repair works of existing irrigation facilities.

B. Post-Harvest Facilities Development Program

SECTION 43. Development of post-harvest facilities. — In coordination with local
government units (LGUs), the National Food Authority (NFA) and the Department,
through its Philippine Center for Post-Harvest Development and Mechanization
(PhilMech), shall draw up an integrated three-year Program of Implementation for
‘completing the construction of dryers, rice storage and other common service facilities
that are needed in the rice producing municipalities and barangays and the
construction of warehouses that are needed in the Rice Development Zones and other
rice producing provinces and regions. At the most practicable, the Program of
Implementation shall see to it that the facilities are based on appropriate technology,
strategically optimized project siting and cost-benefit analysis and will holistically form
a national post-harvest chain that will address issues of post-harvest losses, high
transportation costs and deterioration of product quality.

The Program of Implementation to be crafted jointly by the Department and the NFA shall
integrate the post-harvest facilities projects undertaken by LGUs.

The PhilMech shall provide the research and advisory requirement for determining the
appropriate technology of the post-harvest facilities,

SECTION 44. Roles of the Department and the NFA. - The Department shall have the
primary role of implementing the construction of post-harvest facilities in rice producing
municipalities and barangays. For this purpose, it shall have supervisory function over
Post-harvest facilities projects undertaken by the LGUs.

The Department, through its PhilMech, shall launch a nationwide training program that will
disseminate the appropriate technology down to the rice farmers and build the institutional
capability of their organizations or cooperatives to operate and maintain these post-harvest
facilities.

‘The NFA shall have the primary role of implementing the construction of warehouses in
Rice Development Zones and other rice producing provinces and regions.


Both agencies shall ensure the completion of all the component projects of their integrated
Program of Implementation within three (3) years.

SECTION 45. Administration of municipal and barangay post-harvest facilities. —
Upon completion of the construction of municipal and barangay post-harvest facilities,
the Department shall tum them over for administration and maintenance to concemed
LGUs where the facilities are located.

The concemed LGUs may opt, or upon application by a barangay-LGU, a farmers’
organization or a farmers’ cooperative, to tum over these post-harvest facilities to qualified
barangay-LGU, farmers’ organizations or farmers’ cooperatives: Provided, that the
barangay-LGU, farmers’ producers organization or farmers’ cooperative has been certified
by the PhilMech to have undergone the knowledge-transfer training and have acquired the
institutional capability to operate the post-harvest facilities.

All municipal and barangay post-harvest facilities turned over to barangay-LGUs, farmers’
organizations or farmers’ producers cooperatives shall be under the supervision of the
Local Rice Supply Security Councils as created under Section 90 hereof.

SECTION 48. Mechanisms for maintenance of post-harvest facilities. - To help
defray the maintenance costs of the municipal and barangay post-harvest facilities, the
LGUs or the farmers’ organization or farmers’ producers cooperative to which they are
turned over shall be allowed to collect reasonable fees for the use of the facilities:
Provided, that no collection or increase of service fees shall be imposed without:

a. in the case of the municipal LGU, the approval of the Sangguniang Bayan through
@ resolution that has undergone wide public hearing;

b. jin the case of a barangay-LGU, the approval of the majority of the farmers in the
barangay; and

c. in the case of a farmers’ organization and farmers’ cooperative, the approval of the
majority of its members and the concurrence of the Local Rice Supply Security
Council.

The fees on the use of municipal and barangay post-harvest facilities shall be used
exclusively for the maintenance of these facilities and in no case shall any fee be collected
other than for defraying the maintenance costs for the facilities.

SECTION 47. NFA inventory of its post-harvest facilities. — Within thirty (30) days after
the effectivity of this Act, the NFA shall make an inventory of its dryers, warehouses
and other post-harvest facilities and ensure that they are operational and viable. For
deteriorating post-harvest facilities under its control and administration, the NFA shall
integrate, where practicable, their repair and rehabilitation into the integrated Program
of Implementation.

SECTION 48. Authority of NFA to dispose non-productive post-harvest facilities. -
The NFA shall have the authority to dispose, sell or lease to private entities any of its
post-harvest facilities that the inventory has found to be performing below fifty percent
(60 %) of their capacity or beyond repair and rehabilitation.


Ifthe NFA decides to sell or lease out these facilities, it shall make the offer first to farmers’
organizations or farmers’ producers cooperatives.

SECTION 49. Regulating dryer and warehouse fees operated by private entities. -
Dryers and warehouses operated by private entities, including farmers’ organizations
or farmers’ producers cooperatives which rent out these facilities to non-members,
shall be regulated by the concemed LGUs. If the regulating LGU is the barangay-LGU,
the regulation must be supported by a barangay resolution approved by a majority of
the farmers in the barangay. If the regulating LGU is the municipal-LGU, the regulation
must have the approval of the Sangguniang Bayan through a resolution that has
undergone wide public hearing;

SECTION 50. Responsibility of LGUs. — For a period of three (3) years, LGUs in rice
producing provinces and municipalities shall annually allocate a portion of their budget
as their contribution for the construction of post-harvest facilities in their jurisdictions,
three percent (3 %) in the case of provinces and two percent (2 %) in the case of
municipalities.

CHAPTER IX
Research and Development and Extension Services Program

SECTIONS1. Research and development of appropriate technology for different
rice production systems. - The Philippine Rice Research Institute (PhilRice) shall
add to its Research and Development Structure and devote a considerable portion of
its resources and efforts to the development of multi-disciplinary, ecosystem-based
and ecosystem-friendly appropriate technology and technical support systems for the
different rice production systems in the country.

Its research program shall promote organic rice farming and such other production
technology based on indigenous materials, resources, knowledge and skills with the end
view of reducing costs and attaining self-reliance in terms of sourcing rice farming inputs.

SECTION 52 Extension Services Program. - The Department, in coordination with
state colleges and universities, and in consultation with farmers and their farmers’
organizations and production cooperatives or the Local Rice Supply Security Councils
of LGUs, shall formulate an extension services program focused on enhancing the
production skills and knowledge of rice farmers and in building their capability through
their farmers’ organizations, production and marketing cooperatives. The program
shall strengthen the direct complementary role of the national government in the
delivery of extension services by LGUs to rice farmers.

SECTION 53. Areas of Extension Services. - The extension services program shall
have the following major areas of services:

a. training and education services: this shail include the provision of trainings to help
rice farmers organize cooperatives and other forms of mutual-aid and self-reliant
societies, including trainings on cooperative management, project management
and monitoring, finance administration, accounting, capability building, project
feasibility analysis and fund sourcing:


b. production technology consultancy and advisory;
©. consultancy and advisory on cooperative development and related matters; and
d._ marketing information and communication.

The extension services shall include the periodic upgrading of the technical skills,
knowledge, and professional competence of extension service workers.

SECTION 54. Pooling and networking of extension services. - The Department shall
establish linkages with the agricultural extension programs of state colleges and
universities and private schools with rural development extension programs, to
harness their extension service capabilities and programs for rice farmers. It shall use
such linkages for recruiting agricultural students for volunteer extension service,
Programmed rural immersion, and apprenticeship in the major areas of services
mentioned in the preceding section.

The Department shall also tap non-government agricultural resource centers and
institutions in the rice areas of the country and establish linkages with them to avail of their
resource and extension services and programs.

Upon the approval of concerned state colleges and universities and private schools with
tural development extension programs, an agricultural or community development student
who has rendered a one-year volunteer extension service, immersion or apprenticeship in
any of the major areas of extension services mentioned in Section 53 hereof shall be
credited with having completed the thesis requirement of his or her course.

SECTION 55. Capability-building for rice farmers. ~ The Department shall ensure the
Participation of rice farmers and their organizations in extension services. It shall
ensure through education, training and seminar workshops the formation of
technicians and production advisers from among rice farmers and members of farmers’
organizations and farmers’ producers cooperatives. It shall complement the training
and seminar workshops with a program for the periodic and continuous upgrading of
their technical skills and knowledge.

SECTION 56. Information network for rice farmers. — The Department in coordination
with the Department of Science and Technology (DOST), Department of information
and Communication Technology (DICT), NFA, LGUs, and other appropriate
government agencies, shall establish a computerized national network of information
from the national to the provincial and municipal levels. The information network shall
serve as resource procurement and marketing support services for rice farmers. It shall
include, but not limited to, the following:

a. directory of non-govemment organizations and institutions that provide resource
dissemination, management, technical, organizational or legal services to rice
farmers;

supply and comparative price trends of rice production inputs;

rice demand data;

rice supply data;

timely advisory and forecasts on palay prices of the NFA and private traders; and
directory of trading centers, including listing of traders and farmers marketing
cooperatives.

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‘The Department shall make the information network available on its websites.

SECTION 57. Promoting computer literacy among rice farmers. — The Department
shall promote the computerization of the operation of farmers’ organizations and their
production cooperatives, rural loan associations and credit cooperatives. Its training
and education services shall include basic computer literacy for rice farmers.

CHAPTER X
Rice Lands and Rice Industry Protection Program
A. Protection of Rice Lands

SECTION 58. Rice lands as zones of special protection. - As the primary food base of
the country and consistent with the state policy of protecting our rice industry, all rice
lands in the country are hereby declared as zones of special protection.

SECTION 59. Prohibition against reclassification. - In pursuance of the preceding
Section, the reclassification by municipalLGUs of agricultural lands devoted to rice
Production shall be strictly prohibited

SECTION 60. Prohibition against conversion of rice lands into other uses. —
‘Similarly, the conversion of rice lands into other uses shall be strictly prohibited and is
hereby made a criminal offense.

SECTION61. Prohibition against destruction of rice lands and diminishing their
‘sustainability, economic viability or ecological soundness. - It is likewise strictly
Prohibited for any person to perform such acts that cause the diminution of the
economic viability or productivity of existing rice lands, or such acts that destroy or
undermine the sustainability of rice production in rice lands, including the destruction
of their ecological soundness. Such acts include the following:

a. destroying water systems, whether natural or man-made, or diverting or impeding
their flow that causes rice lands to lose their sources of irrigation, making it appear
that the affected rice lands are no longer economically viable;

b. large-scale cutting of trees that destroys the biodiversity of rice lands;

quarrying that will have the same effect of destroying the biodiversity of rice lands;

d. contaminating rice paddies or water systems that irrigate rice fields with mercury
and other simitar harmful elements or chemicals; and

€. failure to prevent the spill of mine wastes to rice fields.

SECTION 62. Prohibition against crop conversion. — The conversion of rice lands into
other crops is also prohibited
7.

SECTION 63, Land reclassification review mechanism. — The Local Rice Supply
Security Council is hereby mandated to review all reclassification ordinances and
resolutions passed by LGUs before the effectivity of this Act. Where the ordinance or


resolution has covered rice lands and the rice lands have remained productive or have
not been physically converted for more than three (3) years after their reclassification,
the Local Rice Supply Security Council shall make the proper recommendation on the
viability of reverting the rice lands to their former agricultural classification.

If the Local Rice Supply Security Council recommends reversal and the recommendation
is supported by a signed petition of a majority of the farmers who are legitimate voters or
residents of the city or municipality, the Local Rice Supply Security Council shall submit
its recommendation and the signed petition to the sanggunian or the legislative council of
the concemed LGU. If, after thirty (30) days from the receipt of the recommendation and
the signed petition, the sanggunian fails to act on the recommendation and signed petition
of the majority of farmers, the Local Rice Supply Security Council shall submit the
recommendation and the signed petition to the provincial office of the Department of
Interior and Local Government.

The DILG Provincial Director or any DILG official designated for the purpose shall then,
within thirty (30) days from the receipt of the recommendation and the signed petition,
verify the residency of the signatories, the authenticity of the signatures and as to whether
the number of signatories constituted a majority of the farmers in the concerned LGU. If
the DILG Provincial Director finds the petition valid as to the residency of the signatories,
the authenticity of the signatures and the authenticity of claimed majority, it shall issue a
certification to that effect, register the petition in the municipal registry of ordinances and
cause its publication in three (3) newspapers of local circulation. After fifteen (15) days
from the date of publication, the petition shall be deemed to have become an ordinance
and the rice lands shall be deemed to have been reverted to their former agricultural
classification

B. _ Protection of the Rice Industry From Harmful Effects of Importation

SECTION64. Policy of local production preference to meet the buffer stock
requirement of the NFA. — In cases when its actual reserves and buffer stocks
combined are below one hundred-five (105) days, the NFA is hereby mandated to fil
the shortage from local production. In no case shall it resort to importation when the
local rice production can fill the shortage.

SECTION 65. Policy against rice importation. — As a general rule, rice importation is
hereby prohibited. As an exception, it shall only be resorted to upon recommendation
of the National Rice Supply Security Council, as created under Section 98 hereof, after
it has determined through investigation the existence of a rice crisis. The decision to
import rice shall be made in accordance with the next Section.

SECTION 66. Steps to be taken before resorting to rice importation during the rice
crisis. — At the first sign of an apparent sudden increase of rice prices or a critical
inadequacy of rice supply in the domestic market, the National Rice Supply Security
Council shall conduct an investigation to determine if the extent of the price increase
or supply inadequacy constituted a rice crisis as defined in Section 4 (y) hereof. If a
rice crisis exists, it shall include in its report the following.

a. a declaration of the existence of rice crisis;
b. a determination if the rice crisis is caused by hoarding or by manipulation of the
local supply in which case the National Rice Supply Security Council shall


recommend to the President measures for compelling the manipulators to release
the rice supply in their hands;

¢. a determination if the rice crisis is local or national. If the rice crisis is local, the
National Rice Supply Security Council shall recommend measures on how the
national supply may be distributed to address the local crisis; and

d. Ifthe rice crisis is national, the National Rice Supply Security Council shall certify
that local food production cannot fill the inadequacy. Only in such a situation may
it recommend the resort to rice importation.

The National Rice Supply Security Council shall have three (3) days to finish and submit
its investigation report and recommendations to the President.

If the President finds from the report of the National Rice Supply Security Council that
Possible criminal acts were committed by private individuals or government officials in the
course of the existence of the crisis, he shall direct the Department of Justice to investigate
the case and to file the appropriate criminal charges thereon.

SECTION 67. Price Ceiling on Rice. - In the conduct of investigation for determining the
existence of the rice crisis to be made at the first sign of apparent inadequacy of rice
supply in the domestic market, the National Rice Supply Security Council shall have
the authority to implement measures to arrest the skyrocketing of rice prices. It shall
have the authority to order the freezing of rice prices or a return to the price status quo
ante. If there is prima facie evidence of manipulation of prices during the period of
investigation, the National Rice Supply Security Council shall set a ceiling of rice prices
which shall not be more than two percent (2 %) of the price prevailing before the
inadequacy situation. The order of the National Rice Supply Security Council freezing
the rice prices, reverting the rice prices to status quo ante or setting a ceiling to rice
prices shall remain in force until reversed by the President upon recommendation by
the National Rice Food Security Council

CHAPTER XI

‘Strengthening the NFA, Enhancing its Palay Procurement Program
‘And Price Support Program for Consumers

SECTION 68. Mandate and Role of the National Food Authority. — The National Food
Authority is an integral pillar in the national effort to attain food security for the country
based on rice self-reliance and self-sufficiency, increase the income of rice farmers,
stabilize the supply and price of rice in the domestic market, and ensure the
accessibility and affordability of rice to the public, especially the poor among the
consumers. These national goals are hereby incorporated into its mandate. The
authority and functions of the NFA are likewise hereby reoriented towards attaining
these national goals.

In consonance with the provision of this Section and with the State Policies of this Act, the
NFA shail be the sole authority to import rice upon the recommendation of the National
Rice Supply Security Council.


SECTION 69. Forty-five days Rice Reserve and Sixty days Buffer Stocking. —
Consistent with the expanded mandate of the NFA as provided in the preceding
Section, the NFA is hereby mandated to maintain a Reserved Stock good for forty-five
(45) days continuing and a Buffer Stock good for sixty (60) days continuing to be
exclusively sourced from local production except when ordered by the President to
import rice in accordance with Section 66 hereof.

8.

9. The Reserved Stock shall be the NFA’s stocks for calamities and the marginalized
sectors while the Buffer Stock shall be its strategic stocks for market participation

10.

SECTION 70.  Condonation of all existing loan obligations. — So it can better fulfil its
expanded mandate and functions and start afresh on sound and stable financial
footing, the NFA is hereby relieved from payment of all its loan obligations, including
interests due thereon, with the LBP and the Development Bank of the Philippines.

14

SECTION71. Procurement of palay at farm gate price. — The NFA shall procure at
least twenty-five percent (25 %) of the total palay production at farm gate price that
guarantees rice farmers a reasonable rate of retums.

To achieve this procurement target, it shall establish a system that will bring its
procurement closest to rice producing areas and communities.

SECTION72, Schedule of support-pricing on farm gate and establishment of
procurement centers. - The NFA shall purchase palay from rice farmers using the
following price schedule:

a. at Twenty Pesos (P20,00) per kilogram for the calendar year 2018 or upon
effectivity of this Act; and

b. after the initial year, the NFA shall review the farm gate price every year taking into
consideration the impact of inflation rate on fuel and rice production. If the review
finds the cost of rice production to have increased by one point five percent (1.5
%) of the previous production cost, the NFA shall adjust the farm gate price
accordingly, using as reference the national average farm gate price of the
preceding year as posted by the Philippine Statistics Authority.

SECTION73. Setting of farm gate price prior to every cropping season. - The NFA
shall review, set and announce the farm gate price prior to every cropping season, not
later than the months of May and October.

SECTION 74. Strengthening linkage between NFA and rice farmers at the farm gate.
= In purchasing palay from rice farmers, the NFA shall promote the cooperative
marketing of palay among rice farmers, particularly small-scale rice farmers, as a mode
for tightening the procurement linkage between the NFA and the rice farmers at the
farm gate. For this purpose, the NFA shall devise a scheme for enrolling farmers’
organizations or their marketing cooperatives as its procurement arm. The scheme
shall have an incentives package for participating farmers’ organizations or
cooperatives.

SECTION 75. NFA authority to requisition the rice supply of the private sector and
dispose it to address rice crisis or state of calamity. — During rice crisis as declared


by the National Rice Supply Security Council in accordance with Section 66 hereof or
when a state of calamity has been declared over the entire country or over a specific
region or province, the NFA shall have the authority to requisition the rice stocks in the
control of private traders to strengthen its response capability to such exigencies. The
requisition cost shall be the price at which the rice has been bought from the farm gate
by the private traders. In the National Capital Region and other metropolitan cities, the
requisition cost shall take into consideration and include the actual transportation cost
incurred in hauling the rice stocks from their origin

For this purpose, all rice traders who operate warehouses, storage facilities for rice or
other similar structures used for volume stocking of rice, are hereby required to monthly
submit to the NFA, copy furnish the National Rice Supply Security Council, the appropriate
documents, such as warehouse receipts and a verified inventory of their rice stocks, that
will show the volume of rice stocks in their control or in their warehouse, including incoming
stocks and releases for circulation. The NFA shall make a directory of such warehouses
and their operators as well as a monitoring system based on those documents that will
give information on where the volume of rice can be found in real time.

The NFA shall make use of available communication and information technology to place
its requisition: Provided, that any requisition using such technology shall be formalized
through official documentation within forty-eight hours.

SECTION 76. Effect of refusing NFA requisition. - The act of refusing NFA requisition
is hereby considered as abetting the rice crisis or the state of calamity which shall be
a ground for canceling the rice trade or warehouse permit of the private trader or
operator.

SECTION77. Subsidized-pricing for retail rice. - The NFA shall ensure that its
marketed rice is available, accessible and affordable to the consuming public,
especially the marginalized and poorest sectors. It shalll sell it at retail prices not higher
than twenty-five percent (25 %) of the procurement price at farm gate.

SECTION 78. Separate budget for NFA procurement program. - Using simulated
forecasts of consumption requirements and such other necessary information, the NFA
shall craft a palay procurement program that is good for three (3) years upon which its
procurement budget shall be based. Such a budget shall be entirely released to the
NFA so it can have financial flexibility in pursuing its procurement program which it
shall renew or revise at the end of the second year and submit to Congress. The
Department of Budget and Management shall make a special account and procedure
for the releases of the three-year procurement budget of the NFA.

f

12. For the first three (3) years upon the effectivity of this Act, the NFA shall have an
annual procurement budget of One Hundred Three Billion Three Hundred Thirty
Million Pesos (P103.33 B) which shall be immediately released to the NFA after it
has submitted a three (3) year procurement plan


CHAPTER Xil
Rights of Rice Farmers

SECTION79. Security of tenure of rice farmers. — Consistent with the state policy
affirming the indispensable role of rice farmers in developing the rice industry towards
achieving food security for the country, rice farmers shall have the right of security of
tenure over their farm land. They shalll not be ejected from their farm holdings or their
homes, crops and farm structures demolished unless directed by a final decision or
order of the court.

SECTION 80. Trial moratorium of ejectment cases against rice farmers during the
implementation schedule of this Act and cooling off period thereafter. - During
the three (3)-year implementation of this Act, in order not to disrupt the delivery of
services of its core programs to the rice farmer beneficiaries, no trial of any ejectment
case, or any similar case that will result in ousting, shall proceed against any rice
farmer who is a beneficiary of any of the core programs of this Act. The judge or court
with competent jurisdiction over the case shall suspend its proceedings upon the
submission by the rice farmer of a certification from the Department that he is a
beneficiary of any of the core programs of this Act.

Thereafter, any writ of execution issued by a court of competent jurisdiction that will have
the effect of ejecting such a rice farmer shall incorporate into the writ a cooling off period
of one (1) year.

‘SECTION 81. Punishing invalid writ of execution. - in all ejectment cases, or any
similar case that will resutt in ousting, against rice farmers who are beneficiaries of any
of the core programs of this Act, no court or tribunal shall issue a writ of execution
unless all pending issues, including motions for reconsideration of the rice farmers,
have been resolved. The failure of any judge or court of competent jurisdiction to
observe this requirement shall render the writ invalid and any action of any government
official on the basis of such writ is illegal and punishable.

SECTION 82. Private acts of ejectment are criminalized. - Any private act of ejecting
the rice farmer who is a beneficiary of this Act or destroying their crops or farm
structures that will have the same effect of ejectment without any valid court order is
hereby made a criminal offense which is separate from other criminal acts that a private
Person may have committed in the course of ejecting a rice farmer without a court
order.

SECTION 83. Duty of the Department to provide legal services and aid. - The
Department shall have the duty to provide legal services and aid to rice farmers who
are beneficiaries of any of the core programs of this Act but subjected to ejectment
cases or harassment suits.

SECTION 84. DAR AO No. 03-11, Series of 2011 applies when the rice farmer is an
agrarian reform beneficiary. - If the rice farmer subjected to ejectment, or any similar
case seeking to oust him from his farm land, is an agrarian reform beneficiary under
the Comprehensive Agrarian Reform Law and other agrarian reform laws, the judge or
court shall apply the provisions of Department of Agrarian Reform Administrative Order



No. 03-11, Series of 2011, as to the rice farmer. The DAR AO No. 03-11, Series of
2011, is hereby incorporated as part of this Act.

SECTION 85. Right against unscrupulous land rent. - Rice farmers who are tilling farm
lands under tenancy or leasehold, including farmers’ organizations and farmers’
production cooperatives which lease lands for rice production, shall not be subjected
to land rent that is more than ten percent (10%) of the average net harvest per hectare
in the last three consecutive years. All contracts, whether written or unwritten, that
exceed this threshold, including non-cash charges or other exactions added on top of
the rent, are hereby declared as void and are considered reformed in accordance with
this section.

SECTION 86. Right against arbitrary deductions on loans and exorbitant interest
rates. — Rice farmers have the right against arbitrary deductions and exorbitant interest
rates on loans. Rice farmers shall only be charged to pay the principal amount and
interest. All interest rates for loans taken by rice farmers, including farmers’
organizations and farmers’ cooperatives, from private entities shall conform to the
provisions of Sections 23 and 24 hereof and are considered reformed in accordance
therewith upon the effectivity of this Act.

SECTION 87. Right against unfair trade practices. - Rice farmers and their
organizations or cooperatives shall have the right against unfair trade. The following
are unfair trade practices’

a. buying the palay product of rice farmers at prices below the farm gate price set by
the NFA;

b. tacking into loan agreements the condition that binds rice farmers to sell their palay
product to the creditor at prices lower than the NFA farm gate price and such similar
acts that deprive rice farmers the opportunity to seek better prices for their
products;

cc. tacking into loan agreements the condition that binds rice farmers to procure their
farm inputs and rent fam tools and equipment from the creditor at prices or rates
higher than other suppliers and such similar acts that deprive rice farmers the
opportunity to seek lower prices or rent for their needed farm inputs and equipment;
and

4. charging arbitrary deductions and exorbitant rates in milling, threshing, drying and
other similar services.

SECTION 88. Right of rice farm workers to family living wage. - Agricultural workers
in rice farms shall have the right to a family living wage. Agricultural workers working
under piece-meal, pakyawan or any other similar arrangement who have rendered
eight hours of work shall be entitled to the payment of living minimum wage set by law.

CHAPTER Xill
Strengthening Rice Farmers Towards Self-Reliance
SECTION 89. Promoting cooperatives among rice farmers. - The Department shall

make it part of its extension services the strengthening of the ranks of rice farmers to
make them seff-reliant. For this purpose, it shall promote cooperatives and self-reliant


organizations among rice farmers, giving focus on forming cooperatives of small-scale
rice farmers or rice farmers with annual income below the rural poverty threshold. As
much as practicable, it shall promote the following types of cooperatives:

farm resources procurement and sharing cooperatives;
credit cooperatives;

production and labor-sharing cooperatives;

marketing cooperatives;

irrigation cooperatives; and

consumers cooperatives.

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CHAPTER XIV
Local Rice Supply Security Councils

SECTION 90. Municipal/City Rice Supply Security Councils and their functions. -
LGUs of municipalities and cities shall create and constitute a rice food security
watchdog to be called the Local Rice Supply Security Council. Such Council shall be
constituted within thirty (30) days from the effectivity of this Act. It shall have the
following functions:

a. gather data for the Household Rice Food Security Index and ensure its in
publication;

b. review the land use and reclassification ordinances and resolutions in their
municipalities and cities and to make the corresponding proper recommendation
and representation to the local legislative council for its action in accordance with
the provision of Section 63 of this Act;

¢. monitor local legislations that affect the rice industry in their municipalities and
cities;

d. facilitate with the end-view of ensuring the participation of rice farmers in local
venues of decision-making such as their participation in the deliberation of
ordinances and resolutions by local legislative councils on matters related to the
rice industry;

e. give the municipal or city chief executive timely and appropriate advise on matters
related to the rice industry;

f, recommend local legislations for the betterment of the rice industry and its
stakeholders;

. monitor the rice supply in their municipality or city and, whenever it finds a critical
supply situation, to make the corresponding proper report to the Provincial Rice
‘Supply Security Council and the NFA;

h. monitor possible hoarding activities of rice traders and to make the proper report

to the municipal or city mayor and the chief of the local Philippine National Police;

and

monitor the price movement of rice and make the corresponding proper report to

the National Rice Supply Security Council.

The municipalcity Local Rice Supply Security Councils shall meet at least once a month
or as often as necessary.


SECTION 91. Composition of the Local Rice Supply Security Councils. - The
municipal/city Local Rice Supply Security Council shall be composed of the following

a representative of the rice farmers;

a representative of the irrigators association;

a representative of the marketing cooperatives;

a representative of the rice traders doing business in the municipality or city;
a representative of rural development civil society,

the Municipal Agriculture Officer; and

the Municipal Agrarian Reform officer.

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In municipalities and cities where there are no marketing cooperatives, their representation
slot shall be given to rice producers’ cooperative or farmers’ organizations. Likewise, in
the absence of any rural development civil society in the municipality or city, its
representation slot shall be given to civic societies or to the academic sector.

SECTION 92. Manner of constituting the Local Rice Food Security Council and
electing the Chairperson. — Within the thirty (30) days provided in Section 90 of this
Act, the Municipal Agriculture Officer shall call an assembly of all rice stakeholders in
the municipality or city. He shall ensure the attendance of all sectors from the ranks of
which the representation composition of the Local Food Security Council should come
from as provided in the preceding section. He shall also ensure the attendance of
women in the assembly. The assembly shall then elect their representatives to the
Local Rice Supply Security Council in accordance with the representation prescribed
in the preceding section.

The Municipal Agriculture Officer shall make a report of the results of the elections and
submit it to the chief executive of the municipality or city, copy furnish the provincial offices
of the National Food Authority and the Department.

The Local Rice Supply Security Council shall elect its Chairperson from among its
members.

SECTION93. LGUs responsibility to provide working facilities for the Local Rice
‘Supply Security Council. - The LGUs shall provide office space and make available
their facilities to the Local Rice Supply Security Councils to make them operational.

SECTION 94. Household Rice Security Index. — LGUs shall establish and maintain a
Household Rice Security Index which is the measurement of rice security of
households in each municipality or city. The Local Rice Supply Security Council shall
be responsible for the gathering of data for the Household Rice Security Index and for
keeping and publishing the Index the expenses for which shall be shouldered by the
concemed LGU. The publication shall be made at the tum of every calendar year.

SECTION 95. Information contents of the Household Rice Security Index. - The
Household Rice Security Index shall have the following information:

number of households;

number of members of each household segregated as to age and gender,
rice consumption of each household segregated as to the sources;
volume of rice supply from the NFA;

volume of rice supply from private traders;

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£. point of origin of the rice supply from private traders;
9. prevailing stall price of rice;

SECTION 96. Provincial Rice Supply Security Councils. — Within forty-five (45) days
after the effectivity of this Act, the Provincial Director of the Department shall call to a
meeting all chairpersons of Local Rice Supply Security Councils of municipalities and
cities of the province and the Provincial Agrarian Reform Officer, Provincial Manager
of the NFA, and the Provincial Directors of the Department of Interior and Local
Government, Department of Social Welfare and Development, Department of Trade
and Industry and the National Economic Development Authority. They shall compose
the Provincial Rice Supply Security Council. They shall elect from among themselves
a chairperson and such other officers they deem necessary. The results of such
election shall be submitted to the Provincial Govemor of the concerned province.

The provincial LGUs shall give office space and make available its facilities to the
Provincial Rice Supply Security Councils to make them operational. It shall establish a
communication hotline for the primary use of the Provincial Rice Supply Security Council.

The Provincial Rice Supply Security Councils shall meet as often as necessary but not
less than once every three months.

SECTION 97. Functions of the Provincial Rice Food Security Councils. — The
Provincial Rice Supply Security Council shall have the following functions:

a. consolidate at the provincial level the Household Rice Security Indexes from the
municipalities and cities;

b. help the Local Rice Supply Security Councils review the land use and
reclassification ordinances of their municipalities and cities;

¢. help the Local Rice Supply Security Councils in making representations with their
local legislative councils for making good their recommendations on land use and
reclassification ordinances or resolutions as provided in Section 63 of this Act;

d. recommend legislations and make representations in the provincial legislative
council on matters related to the rice industry;

e. give the Provincial Govemor timely and appropriate advice on matters related to
the rice industry;

{help the Local Rice Supply Security Councits in making representation with the
NFA for redisposition of rice supply in times of critical rice supply situation;

g. make representation with the Provincial Govemor and other concemed
enforcement agencies, including the Provincial Director of the PNP, for quick
responses against hoarding activities and overpricing of rice; and

h. When there is a local critical rice supply situation, immediately submit a report to
the National Rice Supply Security Council with its recommendation as to whether
or not there is a need to declare the existence of the rice crisis and conduct an
investigation covering the province.

CHAPTER XV

National Rice Supply Security Council


SECTION 98, _ The National Rice Supply Security Council. — There is hereby created a
‘National Rice Supply Security Council which shall be composed of the following:

Secretary of the Department;
Director-General of the National Economic Development Authority

‘Administrator of the National Food Authority;

Secretary of the Department of Justice;

Secretary of the Department of Interior and Local Goverment;

Secretary of the Department of Social Welfare and Development;

‘Secretary of the Department of Trade and Industry;

Director General of the Philippine Rice Research Institute;

a representative from the Provincial Rice Supply Security Councils;

a representative of the farmers sector (one each from Luzon, Visayas and
Mindanao),

k. a representative of women sector;

|. a representative of rural development civil society;

m. a representative of the irrigators sector;

n._a representative of the consumers sector;
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a representative of the rice vendors sector; and
a representative of the rice traders sector.

The Executive Secretary of the Office of the President shall gather nominees from the
Provincial Rice Supply Security Councils and from the sectors mentioned in enumeration
m. to s. and appoint from among the nominees the representatives for the Provincial Rice
Supply Security Councils and for each sector.

Within three (3) months during which the appointment of representatives of the Provincial
Rice Supply Security Councils and the sectors shall have been completed, the Executive
Secretary shall convene the members of the National Rice Supply Security Council and
preside its inaugural meeting until it has elected a chairperson from among the sectoral
representatives.

The National Rice Supply Security Council shall meet at least twice a year or as often as
it deems necessary. Its Chairperson shall have the power to call an emergency meeting
during critical situations of rice supply and price movements in the local market.

SECTION 99. Functions of the National Rice Supply Security Council. - The National
Rice Supply Security Council shall have the following powers and functions:

a. ensure that the policies and provisions of this Act on protecting the rice industry
from the harmful effects of rice importation are implemented;

b. serve as the Advisory Council for the Office of the President on all matters that
affect the rice industry;

c. declare the existence of a rice crisis after conducting an investigation in
accordance with Section 66 of this Act;

d. recommend measures for addressing critical situations of the rice supply in the
domestic market;

. recommend to the NFA the importation of rice as a last resort after establishing
and certifying that local rice production cannot fill in the supply inadequacy;

{. set the terms and conditions for the rice importation;


g. impose price control measures during critical rice supply situations in accordance
with Section 66 of this Act;

h. recommend legislations for the betterment of the rice industry and its stakeholders
and make representation with both Houses of Congress for the enactment of
recommended legislations;

i. review the executive report of the Department on the Profiles of implementation of
the core programs of this Act in Rice Development Zones; and

j. review the periodic report of the Department on the special beneficiaries;

SECTION 100. Office, Secretariat and Budget. - The Department shall provide the
National Rice Supply Security Council office space and equipment, facilities and
vehicles for its operation. It shall also form from among its personnel a staff
complement that will be detailed to the National Rice Supply Security Council to serve
as its Secretariat and perform core functions and services.

The National Rice Supply Security Council shall have an initial annual budget of no less
than Thirty Million Pesos (P30,000,000.00) after which it shall be levelled to no less than
Twenty Million Pesos (P20,000,000.00) in the succeeding years: Provided, that it may be
increased upon request of the National Rice Supply Security Council but shall not be
diminished by the DBM or Congress.

SECTION 101. Remuneration for sectoral representatives. - The representatives from
the Provincial Rice Supply Security Council and of the sectors shall be entitled to a
remuneration for their attendance of the meetings of the National Rice Supply Security
Council. The amount of the remuneration shall be decided in the inaugural meeting of
the National Rice Supply Security Council, Provided, that the amount shall not exceed
Ten Thousand Pesos (P10,000.00) per attendance for each representative.

CHAPTER XVI
Appropriations
SECTION 102. Appropriation and Core Programs allocations. - The amount of One
Hundred Eighty-Five Billion (P185 B) is hereby appropriated to fund the Three-Year
Implementation Plan of this Act. Such amount shall be apportioned as follows:

a. Twenty-Five Billion (P25 B) for the RPSCF;

b. Forty-Five Billion Pesos (P45 B) for the Accelerated Imigation Development
Program and Twenty Billion (P20 B) for the rehabilitation and repair of existing
irrigations systems;

¢. Thirty Billion (P30 B) for the Post-Harvest Facilities Development Program;

. Fifty Billion (P50 B) for the Farm Inputs Support Program to be released each year
at Sixteen Billion and Six Hundred Sixty-Six Million Pesos (P16.666 B);

e. Fifteen Billion (P15 B) for Research and Development and Extension Services
Program


Upon the completion of the Three-Year Implementation Plan, the National Government
shall appropriate at least Twenty-Seven Billion Pesos (P27 B) to be included in the annual
Goverment Appropriations Act for sustaining the core programs of this Act. Such amount
shall be apportioned as follows:

b.

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a.

Ten Billion (P10 B) for the maintenance of constructed irrigation systems;

Ten Billion (P10 B) for the continuation of the Rice Production Socialized Credit
Program;

Five Billion (PS B) for the continuation of the Production Support Program;

‘Two Billion (P2 B) for research development and extension services;

SECTION 103. Exemption from election ban. — The projects for the implementation of
the Accelerated Infrastructure Development Program of this Act shall be exempt from
election ban on public works.

CHAPTER XVII

Prohibited Acts

SECTION 104. Criminal Offenses. - The following acts, as defined in Chapter II, Section
4 of this Act, shall be prohibited and be liable for punishment:

b.

Rice hoarding - There shall be prima facie evidence of hoarding when:

1. a person has stocks of rice which are not included in his inventory report to the
NFA as mandated in the second paragraph of Section 71 of this Act,

2. a person has documented stocks of rice which is ten percent (10%) higher than
his average level of increase in his inventory in the last six (6) months
immediately prior to the discovery of the questionable increase;

3. a person has stocks of rice which exceed the capacity of his warehouse or
storage facility by ten percent (10 %);

4. a person has maintained two or more dummy operators of warehouses which
enable him to control stocks of rice higher by more than five (5) percent of his
market share for the last three (3) months;

5. a person does not dispose, sell or distribute his stocks to the public for a period
of fifteen (15) days from the warehouse arrival of the stocks; or

6. a person takes out his stocks from distribution.

Profiteering — There shall be prima facie evidence of profiteering when:

1. a person sells his rice stocks to the public at a price which is ten (10) percent
higher than the price during the immediately preceding month;

2. a person sells his rice stocks during the period of rice crisis the existence of
which has been declared by the National Rice Supply Security Council at a
price that does not conform with the price freeze, status quo ante price, or price
ceiling order of the National Rice Supply Security Council;


3. a person buys rice from the NFA at a lower price per kilo and sells it to the
Public at a price per kilo which is ten (10) percent higher than the NFA price;

4, a person sells rice which is a mixture of commercial and NFA rice or a mixture
of lower grade variety and higher grade variety; or

5. a person misrepresents his rice stocks as to variety, weight and measurement.

¢. Engaging in rice cartel operations - There shall be prima facie evidence of
engaging in rice cartel operations when:

1. two (2) or more persons or business enterprises dealing in rice and competing
for the same rice market perform uniform or complementary acts among
themselves which tend to bring about artificial shortage of rice supply in order
to increase the price: or

2. they simultaneously increase prices on their rice thereby lessening the
competition among themselves;

d. Rice smuggling - Rice smuggling, regardless of volume or value, is hereby
declared as an act of sabotage against the national rice industry, our rice farmers
and the people.

Rice smuggling is committed and the commission is prima facie evidence when:

1. a person buys or procures rice from any source outside of the country and
brings the rice into the country;

2. a person transports or stores or sells inside the country the rice bought or
procured from outside the country;

3. a government official issues any document to a private person or entity to give
cover of legality to the act of bringing into the country the rice bought or
procured from outside the country; or

4. a person acts as broker or intermediary for the importer in disposing the
imported rice;

CHAPTER XVIII
Punishment and Penal Provisions

SECTION 105. For the issuance of an invalid writ execution that violates the security
of tenure of a rice farmer. ~ For any judge who issued a writ of execution against a
rice farmer in violation of the provision of Section 81 of this Act, the punishment shall
be suspension without pay of not less than six (6) months to two (2) years and a fine
of One Hundred Fifty Thousand Pesos (P150,000.00). For any judge who commits the
same violation a second time, the punishment shall be dismissal from service,
Perpetual disqualification from the judicial service, and a fine of Two Hundred
Thousand Pesos (P200,000.00).

For any government official, including members of the Philippine National Police and the
‘Armed Forces of the Philippines, who acts upon an invalid writ of execution resulting in the
illegal ejectment or ousting of a rice farmer, the punishment shall be dismissal from service,
perpetual disqualification from government service and a fine of One Hundred Thousand
Pesos (P100,000.00).


SECTION 106. For ejecting a rice farmer without a valid writ of execution or using an
invalid warrant. - For any person who orders or organizes a demolition activity
against a rice farmer in violation of Section 82 of this Act, if the illegal ejectment is
attended with excessive force and violence, the penalty shall be an imprisonment of
not less than six (6) years but not more than eight (8) years and the payment of moral
and exemplary damages for the moral injury of the rice farmer and actual damages for
his destroyed properties.

In all other cases, the penalty shall be an imprisonment of not less than four (4) years but
not more than six (6) years and the payment of moral and exemplary damages for the
moral injury of the rice farmer.

SECTION 107. For land-use conversion and destruction of rice lands. - For any
person who violates Section 60 or commits any of the acts enumerated in Section 61
of this Act, the penalty shall be as follows:

a. If the conversion or destruction of rice lands is eighty-five (85) to one hundred
percent (100%), the penalty shall be an imprisonment of not less than twelve (12)
years but not more than fifteen (15) years and a reparation fine equivalent to the
total expenses necessary to restore the converted or destroyed land to its rice
production use;

b. Ifthe conversion or destruction is sixty-five (65) to eighty-four percent (84%), the
penalty shall be an imprisonment of not less than six (6) years but not more than
eight (8) years and a reparation fine equivalent to the expenses necessary to
restore the converted or destroyed portion to its rice production use;

c. Ifthe conversion or destruction is fifty (50) to sixty-four percent (64 %), the penalty
shall be an imprisonment of not less than four (4) but not more than six (6) years
and a reparation fine equivalent to the expenses necessary to restore the
converted or destroyed portion to its rice production use; and

. Ifthe conversion or destruction is below fifty percent (50 %), the penalty shall be
an imprisonment of not less than two (2) years but not more than four (4) years and
a reparation fine equivalent to the expenses necessary to restore the converted or
destroyed portion to its rice production use;

The reparation fine in each case shall be determined by an independent
assessment commission to be appointed by the court.

SECTION 108. For crop conversion of rice lands. — Any person who violates Section 62
of this Act shall be meted the fine equivalent to twice the gross value of the rice that
was lost to crop conversion. The gross value shall be based on the average gross
harvest for the last two cropping.

‘Any person who induces a rice farmer to convert his rice farm to other crops shall be meted
the fine equivalent to the gross value of the rice that was lost to crop conversion.

SECTION 109, For hoarding, profiteering and engaging in cartel operation. — For any
person who commits any of the acts in enumeration a., b. and c. of Section 104 of this


Act, the penalty shall be not less than eight (8) years but not more than twelve (12)
years, a fine of not less than Five Hundred Thousand Pesos (P500,000.00) but not
more than Five Million Pesos (P5,000,000.00) and the cancellation of his business
permit.

SECTION 110. For rice smuggling. — For any person who commits any of the acts in
enumeration d. of Section 104 of this Act, when the minimum value is less than Ten
Million Pesos (P10,000,000.00), the penalty shall be not less than twelve (12) years
but not more than seventeen (17) years, a fine of twice the value of the smuggled rice
and the aggregate amount of the taxes, duties and other charges avoided and the
cancellation of his business permit.

If the rice smuggled has a minimum value of Ten Million Pesos (P10,000,000.00), as
determined by the Bureau of Customs (BOC), the act shall be deait with in accordance
with the penal provisions of Republic Act 10845 or The Anti-Agricultural Smuggling Act of
2016.

In all cases, in accordance with Section 2530 of the Tariffs and Customs Code, the
smuggled rice and the property used in smuggling shall be confiscated and, without
prejudice to Section 2531 of the same Code, shall be forfeited in favor of the Govemment.
The Bureau of Customs shail tum over the confiscated rice to the NFA to form part of its.
buffer stock

SECTION 111. Criminal liability of officers of juridical persons. — When the violator of
any of the prohibited acts is a juridical person, the criminal liability shall attach to its
president, chief operating officer or manager who consents, tolerates or fails to take
action to prevent the commission of the violation.

SECTION 112. Criminal liability of public officials. — Any public official or employee who,
by reason of his office, with or without consideration, conspires in the commission of
the prohibited acts or knowingly conceals the violation, shall likewise be held principally
liable for the violation and shall suffer the additional penalty of permanent
disqualification to hold public office.

CHAPTER XIX
Congressional Oversight Committee

SECTION 113. Congressional Oversight Committee. - A Congressional Oversight
Committee is hereby created to oversee and monitor the implementation of this Act. It
shall be composed of the Chairpersons and Vice-chairpersons of the Committees on
Agriculture and Food, Agrarian Reform, and Poverty Alleviation of the House of
Representatives and Chairpersons and Vice-chairpersons of the Committees on
Agriculture and Food, Agrarian Reform and Economic Affairs of the Senate.

‘The Chairperson of the Congressional Oversight Committee shall be rotated among the
chairpersons of the member-committees.

The Congressional Oversight Committee shall meet twice a year.


CHAPTER XX
Terminal Review of Implementation

SECTION 114. Sunset review. - On the third year of the implementation period, the
Congressional Oversight Committee shall conduct a total review of the implementation
of this Act per its component programs, especially its Focused-Poverty Alleviation
Program. If it finds compelling and reasonable grounds to extend the entire program
or any of its components, the extension shall be limited to one year; Provided, that the
extension for the Focused-Poverty Alleviation Program shall be until the special
beneficiaries have successfully transitioned to crossing over the rural poverty threshold
‘one hundred percent (100 %).

13.
CHAPTER XXI

Miscellaneous Provisions

SECTION 115. Implementing Rules and Regulations. — The Department shall issue the
Implementing Rules and Regulations of this Act within forty-five (45) days after its
effectivity.

SECTION 116. Repealing clause. — All laws, decrees, executive orders, rules and
regulations and other issuances not consistent with this Act are hereby repealed or
amended as to inconsistent parts.

SECTION 117. Separability clause. — If any provision or part of this Act is declared void,
the remaining parts shall remain in force and effect.

SECTION 118. Effectivity clause. — This Act shall take effect immediately after fifteen (15)
days from its publication in the Official Gazette.

Approved