Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SIXTEENTH CONGRESS

First Regular Sessi

House Bil No. 8252

Introduced by Hon. Sol Aragones

EXPLANATORY NOTE

Rice production in the Philippines has tripled from 5.32 million tons in 1970 to a peak
of 16.82 million tons in 2008. A couple of strong typhoons caused a decline in palay
production in 2010 to 15.77 million metric tons (MMT). In 2011, production rose to 16.68
MMT, an improvement over 2010 but still below the 2008 production level. The Philippines’
area harvested to rice is much smaller compared to the major rice producing countries in
Asia. This is the primary reason why we import rice.

It has been reported that rice prices are going up, rising by P2 per kilo in public
markets in Bulacan and by P3 to P4 per kilo in Pampanga. The Kilusang Magbubukid ng
Pilipinas (KMP) recently announced that the retail price of rice was pegged at P35 to P37 per
kilo, up from P32 to P34 per kilo during the first round of price increases in early July of this
year.

One big threat cited by the Department of Agriculture when it comes to rice
production is the price of fertilizers. It is thus necessary to restore the subsidy provided by the
state to rice farmers in the purchase of their fertilizers. However, this needs to be done in a
regulated, controlled, and Congress-teviewed environment.

The policy objectives of this bill are as follows: (1) support the livelihoods of rice
farmers; (2) achieve national self-sufficiency in rice; (3) ensure that it is financially
sustainable for the government; (4) curtail transaction costs and inefficiencies associated with
distribution; and (5) minimize environmental pollution due to the over-application of
fertilizer. In light of the foregoing, the immediate passage of this bill is earnestly requested

Us ont
HON. A cones

Representative, 3 District of Laguna

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Repubiic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS

First Regular Session

3252

House Bill No.

Introduced by Hon. Sol Aragones

AN ACT
TO INSTITUTE A FERTILIZER SUBSIDY PROGRAM
FOR RICE FARMERS

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:
SECTION 1. Short Title. ~ This Act shall be known as the “Rice Fertilizer Subsidy

Act of 2013.”

SECTION 2. National Rice Fertilizer Subsidy Program. ~ The Department of
Agriculture (the “Department”) shall implement a National Rice Fertilizer Subsidy Program

which shall benefit qualified rice farmers.

SECTION 3. Fertilizer Subsidy. — The Department shall provide fertilizer to qualified

tice farmers with a fifty percent (50%) subsidy from the procurement cost of such fertilizer.

SECTION 4. Regional Database. — The Department shall establish and maintain a
regional electronic database that contains the names, contact information, and addresses of

farmers who are qualified to avail of the fertilizer subsidy under this program.


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SECTION 5. Program Safeguards. — The following safeguards are required for the
implementation of this Act ~
‘A. The beneficiaries shall be required to register with a government issued
identification card and whose farm should be verified to be rice-producing;
B. The Department shall train the farmer-beneficiaries on the proper use of the
subsidized fertilizers:
C. The Department shall submit an annual report to the agriculture committee of both
houses of Congress on the implementation of this program;
D. The report of qualified farmers and actual beneficiaries shall be submitted to the

Commission on Audit on a quarterly basis.

SECTION 6. Requirements for Farmer Beneficiaries. ~The following are required

for farmer beneficiaries:

A. Application for Fertilizer Subsidy (AFS) which shall also serve as the registration

and database form;

B. Farm Plan and Budget (FPB) showing schedule of farm activities, e.g.,date of

planting and harvest, etc.;

C. Location Sketch Plan (LSP)/Control Map (CM) showing landmarks and names of

adjoining lot owners; and

D. They should sell fifty percent (50%) of their harvest to the National Food

Authority (NFA) as stock buffer for food security.

SECTION 7. Farm Eligibility. — The following are the eligibility requirements for

rice farms:

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D.

. The farm must not be part of a riverbed, lakebed, marshland, shoreline or

tiverbank;

. The farm must have an effective irrigation and drainage systems. Rain-fed areas

are eligible farms during wet cropping season subject to planting cutoff date;

. The farm must be accessible to regular means of transportation; and

The farm must be suitable for production purposes.

SECTION 8. Program Report. - The Department shall annually submit to the

agricultural committee of both houses of congress a report assessing the fertilizer subsidy

program. Each report required shall include, for the one-year period ending on March 1 of the

year in which the report is submitted —

A.

B.

the number of farmers that participated in the program;
information regarding the demographic characteristics of the farmers, including

their educational background;

. a description of the steps taken by the Department to help the farmer-

beneficiaries;

). the amount of rice harvest sold by the farmer-beneficiaries to the National Food

Authority; and

. an assessment of the success or failure of the fertilizer subsidy program on the

standards of increasing rice production and improving the living condition of the

rice farmers.

SECTION 9. Separability Clause. —If any provision or part hereof, is held invalid or

unconstitutional, the remainder of the law or the provision not otherwise affected shall

remain valid and subsisting.


SECTION 10. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation contrary to or is
inconsistent with the provision of this Act is hereby repealed, modified, or amended

accordingly.

SECTION 11. Effectivity Clause. — This Act shall take effect fifteen (15) days after

its publication in at least two (2) newspapers of general circulation.

Approved,