.~ 
" 
16th CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 
flUG 27 F 6 :28 
SENATE 
Senate Bill No. 2384 
Introduced by SENATOR SONNY ANGARA 
EXPLANATORY NOTE 
Agriculture remains a sector most vital to the overall development of the country, 
not just as the main driver of food security but also as a source of livelihood. 
But average agricultural employment has varied very little, staying only between 
11 and 12 million from 2003 to 2013, as Bl,.lreau of Agricultural Statistics data would 
show. This indicates how agricultural growth has remained lackluster for decades-with 
such underperformance contributing immensely to chronic poverty and hunger. Indeed, 
Philippine agriculture remains a burgeoning, rather than flourishing sector. 
Through the Department of Agriculture and its many attached agencies, 
govemment is providing whatever suppo'rt it can to the sector. 
However, current 
policies are clearly inadequate - either in their form or in their implementation. 
The problems are multi-faceted, with training and human capital development 
standing as areas that demand more focus and attention, Every year, universities and 
colleges graduate sizable numbers of students from agriculture-related courses, Yet, 
the outlook remains that agriculture is less ()f a profession or business enterprise than a 
means to daily subsistence. 
Our agriculture needs to be infused with an entrepreneurial spirit. There have 
been initiatives to address the need for agricultural entrepreneurship training programs, 
enshrined by laws such as the Rural Farm Schools Act of 2013 (RA 10618). 
, The foregoing measure aims to support these, drawing from the Dual Training 
System of 1994 (RA 7686). When this measure is enacted, the country will train men 
and women as agriculture entrepreneurs (agri-preneurs), with hands-on experience in 
agriculture endeavors and well-versed in agriculture as an entrepreneurial activity. This 
can be accomplished through a ladderized system of agricultural education and training 
in the post-secondary or collegiate level, which can be an extension of the Rural Farm 
Schools curriculum. 
The passage of this bill is timely as the world tries to give significance to farming' 
as a way to eradicate hunger and poverty, provide food security and nutrition, improve 
livelihoods, manage natural resources effectively, protect the environment and achieve 
sustainable development. 
In view thereof, approval of this bill is earnestly sought. 
TOR SONNY ANGARA 


, 
, 
16TH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 
AUG 27 P 6 :28 
SENATE 
Senate Bill No. 2384 
Introduced by SENATOR SONNY ANGARA 
AN ACT 
TO DEVELOP AND STRENGTHEN THE AGRICULTURAL EDUCATION AND 
TRAINING IN THE COUNTRY THROUGH THE INSTITUTIONALIZATION OF 
MANPOWER DEVELOPMENT FOR AGRICULTURAL ENTREPRENEURSHIP IN 
THE POST-SECONDARY LEVEL 
Be it enacted by the Senate and the House of Representatives of the Philippines in the 
Congress assembled. 
1 
Section 1. Title. -
This Act shall be known as "The Entrepreneurial Agricultural 
2 
Education Act. " 
3 
4 
Section 2. Declaration of Policy. - It is, hereby declared the policy of the State to 
5 
promote the sustained development of a reservoir of national talents consisting of 
6 
Filipino 
scientist, 
entrepreneurs; 
professionals, 
managers, 
high-level 
technical 
7 
manpower and skilled workers and craftsmen in all fields. Towards this end, manpower 
8 
education and training in the agricultural sector must be developed and strengthened in 
9 
order to provide the country with a pool of educated and skilled agricultural manpower 
10 
equipped with appropriate skills in agriculture and business, and desirable work habits 
11 
and attitudes. 
12 
13 
Section 3. Agricultural Manpower Educqtion and Entrepreneurship System. - The 
14 
State hereby establishes the Agricultural Manpower Education and Entrepreneurship 
15 
System (AMEES) that will assume a leadership role in the post-secondary, vocational or 
16 
tertiary level of agricultural and entrepreneurship education, following the completion of 
17 
the rural farm school's curriculum in the secondary level. 
18 
19 
Section 4. Objectives. -
This Act primarily aims to develop and strengthen the C 
20 
agricultural education and training in the country through the institutionalization of 
21 
manpower development for agricultural entrepreneurship in the post-secondary level. It 
22 
shall have the following specific objectives:, 
23 
24 
(a) Encourage the application of manpower development for agricultural 
25 
entrepreneurship in agricultural, technical and vocational education and 
26 
training by both public and private schools within the context of existing 
27 
agricultural training and educational system; 
28 . 
29 
(b) Promote investment in manpower education and training for agriculture 
30 
entrepreneurship by both public and private sectors especially in rural areas; 
31 
32 
(c) Enhance the managerial. skills and technical competence of students of 
33 
agriculture by equipping them with analytical and creative thinking and 
34 
problem-solving abilities; manipulative competencies suitable for occupational 
1 


-":' . 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
standards and requirements; values and attitudes with emphasis on work 
ethics, quality orientation, discipline, honesty, self-reliance and patriotism; 
and, 
(d) Strengthen training cooperation between agricultural, industrial and business 
establishments and educational institutions by designing and implementing 
relevant training programs in close coordination with local governrnent units. 
Section 5. Definition of Terms. -
For purposes of this Act, the following terms shall 
mean: 
, 
(a) Agricultural Entrepreneurship refers to the process of identifying, starting and 
managing a farm business or enterprise, sourcing and organizing the required 
resources and taking both the risks and rewards associated with the venture. 
16 
(b) Manpower education and training refers to the instructional delivery system of 
17 
agricultural, technical and vocational education and training that combines 
18 
hands-on and in-school training based on a training plan designed and 
19 
implemented by an accredited manpower education and training institution for 
20 
agricultural entrepreneurship and a\::credited dual system agricultural, industrial 
21 
and business establishments with prior notice and advice to the local government 
22 
unit concerned. 
23 
24 
(c) Trainee refers to a person qualified to undergo the manpower education and 
25 
training for qgriculture entrepreneurship. 
26 
27 
(d) Farm Business Schools are post-secondary schools where students, who are 
28 
graduates of the Rural Farm Schools or any qualified secondary institution 
29 
specializing in agriculture, shall be trained on agricultural entrepreneurship. 
30 
31 
(e) Accredited dual training system educational institution or training center 
32 
refers to a public or private institution duly recognized and authorized by the 
33 
TESDA in coordination with the agricultural sector, business and industry, to 
34 
participate 
in 
the 
manpower 
education 
and 
training 
for 
agricultural 
35 
entrepreneurship; 
36 
37 
(f) Accredited. dual training system agricultural, industrial and business 
38 
establishment refers to a juridical entity duly recognized and authorized by the 
39 
TESDA to participate in the dual system for manpower education and training for 
40 
agricultural entrepreneurship. 
41 
42 
(g) Establishments refer to enterprises or services, or both, of agricultural, 
43 
industrial, or business establishments. 
44 
45 
Section 6. 
Institutionalization of the manpower education and training for 
46 
agricultural entrepreneurship. - The manpower education and training for agriculture 
47 
entrepreneurship, hereafter the System, shall be institutionalized in the Philippines, it 
48 
shall form as part of the post-secondary education curriculum as provided in this Act. 
49 
50 
Section 7. Coverage. _. This Act shall apply to all public and private educational 
51, institutions or training centers, and agricultural, industrial and business establishments 
52 
duly accredited to participate in the manpower education and training for agricultural 
53 
entrepreneurship. 
54 
55 
Section 8. Components of the Manpower Education and Training for Agricultural 
56 
Entrepreneurship. -
The 
manpower education 
and 
training 
for agricultural 
57 
entrepreneurship shall have the following components: 
2 


1 
2 
1. There shall be a ladderized system of agriculture entrepreneurship education that 
3 
begins in the post-secondary level following the completion of the Rural Farm School 
4 
curriculum as provided in Republic Act No.~ 10618 (Rural Farm Schools Act of 2013), or 
5 
upon graduation in any qualified secondary institution, and culminates in applicable 
6 
collegiate courses. The post-secondary program shall involve the conferment of a 
7 
Diploma in Agricultural Entrepreneurship upon graduation of the trainee from the Farm 
8 
Business Schools who shall have the option to continue his studies in partner 
9 
universities for a degree in Bachelor of Science in Entrepreneurial Management, major 
10 
in Farm Business; 
11 
12 
2. There shall be created for each administrative region (excluding the National Capital 
13 
Region) an AMEES Development School, or Farm Business School, and such other 
14 
schools as may be established by law; 
15 
16 
3. There shall be an instructional delivery system of agricultural, technical and 
17 
vocational education and training in each Farm Business Schools that combines hands-
18 
on training and in-school training based on a training plan designed and implemented 
19 
by an accredited manpower education and training institution for agricultural 
20 
entrepreneurship and accredited dual system agricultural, industrial and business 
21 
establishments with prior notice and advice to the local government unit concerned. 
22 
Under this dual system, said establishmepts and the educational institution share the 
23 
responsibility of providing the trainee with the best possible competencies and 
24 
experience, the former essentially through practical training and the latter, by providing 
25 
an adequate level of specific, general and theoretical instruction on agriculture and 
26 
entrepreneurial management; 
27 
28 
4. The AMEES shall include instruction on vital values on citizenship, governance, 
29 
entrepreneurship, work ethics, quality orientation, discipline, honesty, and self-reliance; 
30 
31 
5. The partnership between the public, private and voluntary sectors shall be a crucial 
32 
component of the AMEES in both acade~mic content and in on-the-job or hands-on 
33 
training; and, 
34 
35 
6. The AMEES shall also be promoted among poor farming families and out-of-school 
36 
youth in the rural areas and in agrarian reform communities. The AMEES shall ensure 
37 
that poor and deserving youths receive the necessary grants and scholarships. 
38 
39 
Section 9. Board of Trustees. - There shall be a Board of Trustees, herein referred to 
40 
as the Board, composed of the Secretary of the Department of Agriculture (DA) as ex-
41 
officio Chairman, the Chairman of the Commission on Higher Education (CHEd) as ex-
42 
officio Vice Chairman, and the following members: 
43 
44 
1. The Chairman of the Technical Education and Skills Development 
45 
Authority (TESDA); 
46 
47 
2. The .. Director of the Bureau of Micro, Small and Medium Enterprise 
48 
and Development (BMSMED); 
49 
50 
3. The Director of the DA-Agricultural Training Institute (ATI); 
51 
52 
4. Two (2) Representatives from the private sector representing higher 
53 
education, industry, agriculture, and new and emerging agricultural 
54 
technologies; and, 
55 
56 
5. Representative from a non-governmental organization. 
57 
3 


1 
2 
3 
4 
5 
6 
The representatives from the private sector and non-government 
organizations shall be appointed by the Chairman, subject to the 
confirmation of the Board of Trustees. 
The members of the Board shall serve for four years. 
7 
Section 10. Powers and Functions of the Board. The Board shall exercise the 
8 
following powers arid functions: 
9 
10 
(a) Formulate policies and guidelines for the administration and operation of the 
11 
AMEES; 
12 
13 
(b) Formulate policies on the appointment, promotion, retention, removal, 
14 
renewal, rewards and incentives for administrators, faculty and staff; 
15 
16 
(c) Craft and approve the AMEES curricula; 
17 
18 
(d) Approve the criteria for the selection and admission of students; 
19 
20 
(e) Approve the grant of scholarship, stipend and such allowances for students; 
21 
22 
(f) Approve the graduation of successful candidates from the various AMEES 
23 
campuses or farm business schools; 
24 
25 
(g) Formulate policies and rules of dIscipline for students, faculty and staff; 
26 
27 
(h) Approve the AMEES budget and appropriate to the ends specified by law 
28 
such sums as may be provided by law for the support of the System; 
29 
30 
(i) Receive grants whether cash, land, buildings and improvements thereof; 
31 
donations, contributions, bequest, gifts, and to formulate policies for the 
32 
administration thereof; 
33 
34 
(j) Develop policies for the expansion of enrollment in the campuses under the 
35 
AMEES; 
36 
37 
(k) Set policies and criteria to rationalize the establishment of AMEES schools 
38 
under the System, for its evaluation and approval thereof; 
39 
40 
(I) Prepare strategic plans to enhance the capability of the AMEES in developing 
41 
human resources with focus on youth with special aptitudes and inclination to 
42 
agriculture and entrepreneurship; 
43 
44 
(m) Identify training centerslinstitutions that will provide manpower training and 
45 
education; and 
46 
47 
(n) Perform such other functions as may be necessary to implement the 
48 
provisions of this Act. 
49 
50 
Section 11. Career Management Development Division. - The Career Management 
51 
Development Division (CMDD) of the Agricultural Training Institute (ATI) of the 
52 
Department of Agriculture shall plan, set standards, coordinate, monitor and allocate 
5·3· 
resources in the implementation of the provisions of this Act and in support of the in- . 
54· 
plant training or on-the-job training component of the AMEES: Provided that the 
55 
agricultural and agro-industrial establishment shall be required to furnish the AMEES 
56 . with the necessary information for the purpose of supervision. 
57 
4 


1 
The CMDD shall be headed by a Division Chief (DC). The DC shall be assisted by such 
2 
other personnel as may be necessary for the effective discharge of the functions of the 
3 
office. 
4 
5 
Section 12. Duties and functions of the Division Chief. - The DC shall perform the 
6 
following duties and functions: 
7 
8 
1. Coordinate curriculum planning activities for the AMEES; 
9 
10 
2. Coordinate 
publication 
of farm 
business 
outputs 
of the 
teachers, 
11 
administrators and students from the AMEES; 
12 
13 
3. Provide legal and technical support to the members of the System; 
14 
15 
4. Coordinate exchange programs with other educational institutions both local 
16 
and foreign, including youth development and empowerment organizations 
17 
such as the 4-H Club; 
, 
18 
19 
5. Develop and coordinate linkages and networking among the campuses of the 
20 
AMEES with other institutions; 
21 
22 
6. Coordinate the implementation of the program for the identification and 
23 
selection of scholars for the AMEES; 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
.38 
7. Provide for the secretariat services of the Board of Trustees; and, 
o 
8. Perform such other functions as may be deemed necessary for the effective 
discharge of the DC's duties. 
Section 13. Status of trainee. - Any student who is a bona fide graduate of a Rural 
Farm School or any qualified secondary educational institution shall be eligible to enroll . 
in a farm business school. For the duration of the post-secondary manpower training 
under the system, the trainee is to be considered not an employee of the 
businesslindustrial establishment but rather a trainee of both the accredited dual 
training system educational institution and the agricultural, industrial and business 
establishments; provided that the union or the workers of the latter have been duly 
informed in advance of such an agreement. 
39 
A trainee who has successfully completed a training program in a particular agricultural, 
40 
industrial or business establishment shall be given priority of employment in that 
41 
agricultural, industrial or business establishment. The CHEd shall keep a roll of these 
42 
successful trainees for purposes of identifying them for employment. 
43 
44 
Section 14. 
Obligations of the accre9ited educational institutions or training 
45 
centers. - The educational institutions or training centers that have entered into a 
46 
memorandum of agreement with agricultural, industrial or business establishments to 
47 
undertake training shall: 
48 
49 
(a) Ensure that the necessary skills and knowledge are imparted to the trainee 
50 
during his in-school trainings in accordance with an approved training plan; 
51 
52 
(b) Design, implement and evaluate jointly the training plan with the accredited 
53 
agricultural, industrial and business establishments; 
54 
55 
(c) Provide the training instructors; 
56 
57 
(d) Provide specific, general and occupation-related theoretical instructions; 
5 


1 
2 
3 
4 
5 
, 
(e) Appoint industrial coordinators to supervise the in-plant or farm training; 
(f) Pay the trainee his daily allowance; and, 
6 
(g) Perform such other tasks and activities as may be necessary in furtherance of 
7 
the objectives of the training. 
8 
9 
Section 15. Obligations of accredited agricultural, industrial and business 
10 
establishments. The agricultural, industriqJ and business establishments shall have the 
11 
following duties and responsibilities: 
12 
13 
(a) Ensure that the necessary skills and knowledge are imparted to the trainee 
14 
during his hands-on trainings in accordance with an approved systematic training 
15 
plan; 
16 
17 
(b) Appoint the training officerls to implement the training plan; 
18 
19 
(c) Make available, free of charge, the,consumable materials and basic hand tools 
20 
and equipment necessary for the training; 
21 
22 
(d) Allow the trainee to attend his in-school training and to sit for his examinations; 
23 
24 
(e) Require the trainee to keep his report book up to date and inspect such books; 
25 
26 
(f) Ensure that the trainee is encouraged to develop his personality and that he is 
27 
protected from physical or moral danger; 
28 
29 
(g) Entrust to the trainee such jobs as are related to the purpose of his training and 
30 
are commensurate with his capabilities; 
31 
32 
(h) Pay to the accredited educational institution/training centre the daily allowance of 
33 
the trainee; 
34 
35 
(i) Allow the trainee the necessary time off for his in-school training; and, 
36 
37 
(j) Perform such other obligations in accordance with the provisions of this Act and 
38 
other prevailing laws of the Philippines. 
39 
40 
Section 16. Obligations of the trainee. - A trainee shall exert every effort to acquire 
41 
the skills and knowledge necessary for him to achieve the purpose of his training. 
42 
Towards this end, the trainee shall: 
43 
44 
(a) Carefully perform the jobs entrusted to him as part of his training; 
45 
46 
(b) Take part in training programs for which he has been granted time off under this 
47 
Act; 
48 
49 
(c) Follow the instruction given to him as part of his training by the training officer or 
50 
any other person entitled to give him such instructions; 
51 
52 
(d) Observe rules of behavior in the training premises; 
53 
54 
(e) Use tools, instruments, machines and other equipment with due care; 
55 
56 
(f) Not reveal any business or trade secrets that have come to his knowledge in the 
57 
course of his training; 
6 


1 
2 
(g) Keep his record books up to date; and, 
3 
4 
(h) Perform such other obligations in the attainment of the objectives of this Act. 
5 
6 
Section 17. 
Memorandum of Agreements. Prior to the commencement of any 
7 
manpower training, a memorandum of agreement (MOA) shall be signed by all parties 
8 
which shall stipulate the following, among others: 
9 
10 
(a) the training plan; 
11 
12 
(b) the nature and objective of the training; 
13 
14 
(c) the commencement and duration of the training period, including the total 
15 
number of in-plant/farm training hours; 
16 
17 
(d) the normal daily training hours; 
18 
19 
(e) the trainee's allowance and the rate to be applied, which shall not be less than 
20 
seventy-five (75) per cent of the applicable minimum daily wage; 
21 
22 
(f) the rights and obligations of the parties concerned in addition to those provided in 
23 
Sections 14, 15 and 16; 
24 
25 
(g) the definition of the status of the trainee according to Section 13 of this Act; 
26 
27 
(h) the conditions for the termination of the training agreement; 
28 
29 
(i) the performance, monitoring and evaluation system; and, 
30 
31 
(j) such other essential particulars as would mutually benefit all parties concerned. 
32 
33 
Section 18. Incentives for the trainees. 
34 
35 
a. Every agricultural, industrial and business establishment undertaking training, in 
36 
accordance with the provisions of this Act, shall sign a life and/or accident 
37 
insurance policy on the life of the trainee with the insured and the spouse, 
38 
children or parents of the trainee as the beneficiaries thereof; Provided that the 
39 
agricultural, industrial and business establishments shall pay for the premiums of 
40 
said insurance policy; 
, 
41 
42 
b. Upon graduation, the stUdents will be provided funding as start-up capital for their 
43 
farm business. Financial services and programs shall be made available to them . 
44 
as stipulated in Republic Act No. 10000 or the "The Agri-Agra Reform Credit Act 
45 
of 2009". Students should be able to avail of loans without the need for a 
46 
collateral. A government guarantee fund shall be set aside for this purpose in 
47 
case of a default or failure to pay the debt; Provided that a proof is presented that 
48 
the stUdent suffers from financial hardships and is no longer able to pay his loan. 
49 
50 
c. The governrnent shall also extend incentives to students for the production and 
51 
propagation of organic farm inputs by maximizing their use in all government and 
52 
government-supported agricultural production, research and demonstration 
53 
programs, as embodied in Republic Act No. 10068 or the "Organic Agriculture 
54 
Act of 2010". 
55 
56 
Section 19. Incentives for participating establishments. - To encourage agricultural, 
57 
industrial and business establishments to participate in the system, they shall be 
7 


, , 
1 
2 
3 
4 
5 
6 
7 
8 
9 
allowed to deduct from their taxable income the amount of one hundred and fifty (150) 
per cent of the system expenses paid to the accredited dual training system educational 
institution for the establishment's trainees: Provided that such expenses shall not 
exceed five (5) per cent of their total direct labor expenses but in no case to exceed 
twenty-five million pesos (P25,000,000.00) a year. 
Donations for the operation of the system shall be deductible from the taxable 
income of the donors. Donations to government-run educational institutions shall be 
awarded incentives under Republic Act No. 8525 or the "Adopt-a-School Act of 1998". 
10 
11 
The Department of Finance shall issue the necessary rules and regulations to 
12 
implement the provisions of this section. 
13 
14 
Section 20. Non-diminution of incentives. - Nothing in this Act shall be construed to 
15 
diminish or reduce any privilege already enjoyed by the parties concerned under 
16 
existing laws, decrees or executive orders. 
17 
18 
Section 21. Other exemption from taxes and duties. - Any donation, contribution, 
19 
bequest, subsidy or financial aid which may be made for the operation of the system 
20 
shall constitute an allowable deduction from the income of the donors for income tax 
21 
. purposes and shall be exempt from donor's tax, subject to such conditions as provided 
22 
under the National Internal Revenue Code, as amended. Essential equipment, 
23 
apparatus and materials imported by accredited dual training private educational 
24 
institutions shall be exempt from taxes and duties: Provided that the importation of 
25 
these items shall be subject to the following qualifications that: 
26 
27 
(a) the importation shall be certified by the appropriate authority; 
28 
29 
(b) they should be actually, directly and exclusively used in connection with the dual 
30 
training system and any unauthorized use shall subject the accredited dual 
31 
training' private educational institutions to payment of taxes and duties thereon; 
32 
and, 
33 
34 
(c) they are not available locally in sufficient quantity of comparable quality, and at 
35 
reasonable prices; 
36 
37 
Provided, however, that taxes and duties pertaining to the importations of accredited 
38 
government and dual training educational institutions are deemed automatically 
39 
appropriated. 
40 
41 
The Department of Finance shall accumulate the necessary rules and regulations to 
42 
implement the provisions of this section . 
. 43 
44 
Section 22. Revolving fund. Any law, 
rule or regulation to 
the contrary 
45 
notwithstanding, the accredited dual training system educational institution/training 
46 
center is hereby authorized to retain as a revolving fund the amount paid to it by the 
47 
agricultural, industrial and business establishments representing the actual dual training 
48 
expenses. The fund shall be used to improve the operation of the dual training system. 
49 
50 
Section 23. Implementing rules. - The CHEd, DA, TESDA and the Department of 
51 
Finance, in coordination with other industries concerned, shall issue the necessary rules 
52 
and regulations for the effective implementation of this Act within a period of ninety (90) 
53 
days after its effectivity. 
54 
55 
Section 24. 
Separability clause. 
If any part or provision of this Act is declared 
56 
unconstitutional or invalid, other parts or provisions thereof which are not affected 
57 
thereby shall continue to be in full force and effect. 
8 


1 
2 
3 
4 
5 
6 
7 
8 
9 
t • , 
Section 25. 
Repealing clause. All laws, decrees, executive orders, rules and 
regulations or other issuances or parts thereof, inconsistent with this Act, are hereby 
repealed, amended or modified accordingly. 
Section 26. Effectivity. This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in two (2) newspapers of general circulation. 
Approved, 
9