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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No,__ 608

Introduced by Representative ANTONINO B. ROMAN III

EXPLANATORY NOTE

Agriculture remains a cornerstone of the Philippine economy, yet Filipino rice
farmers continue to struggle with high production costs, limited market access, and low
farmgate prices. These challenges contribute to high poverty incidence among farmers
and diminishing interest in agricultural work among younger generations.

This bill proposes the institutionalization of "coopetition" -- a framework of
cooperation among competing farmer groups through the creation of clustered
organizations and the establishment of multi-purpose farmer coopetition hubs. These
hubs will facilitate the shared use of resources and post-harvest facilities (such as
drying, milling, and storage), and empower farmers to market their products directly,
minimizing reliance on middlemen.

The bill draws inspiration from international best practices. In Thailand and
Korea, farmers control the planting, processing, and marketing of their own produce,
and have bonded into large cooperatives, freeing them from the control of middlemen,
traders, and millers. In Vietnam, rice farm estates are managed by central groups that
coordinate production, post-harvest, and marketing activities of farmers within the
estate, Taiwan's state-led coopetition initiatives have enabled farmers to benefit
collectively from modernized agriculture. In Israel, the kibbutz and moshav systems
showcase how collective ownership or cooperative purchasing and marketing
arrangements can sustain prosperous agricultural communities.

The bill encourages partnerships among national government agencies —-
including the Department of Agriculture, National Irrigation Administration,
Cooperative Development Authority, Technical Education and Skills Development
Authority, and National Economic and Development Authority -- as well as local
government units and the private sector. It provides flexible mechanisms for
implementation, such as repurposing existing infrastructure and gradually building
farmer management capacity, to ensure the program's viability even with limited
funding,



In view of the foregoing, the immediate passage of this bill is camestly sought.

Keon nomn iit



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
TWENTIETH CONGRESS
First Regular Session

House Bill No, 608

Introduced by Representative ANTONINO B. ROMAN III

AN ACT
PROMOTING FARMER = COOPETITION THROUGH THE
ESTABLISHMENT OF MULTI-PURPOSE FARMER COOPETITION HUBS,
DEFINING MECHANISMS FOR CLUSTERING FARMERS AND
EXTENDING SUPPORT SERVICES, AND APPROPRIATING FUNDS
THEREFOR

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

SECTION 1. Short Title. -This Act shall be known as the “Farmer Coopetition and
Empowerment Act.”

SEC. 2. Declaration of Policy. — It is the policy of the State to promote social justice
and inclusive agricultural development by:

a. Encouraging cooperation among competing farmer organizations to optimize
resource sharing:

b. Providing support infrastructure for post-harvest processing and direct market
access:

c. Minimizing monopolistic practices in the rice and food value chain;
d. Improving the incomes and livelihood of Filipino farmers and farmworkers: and

e. Advancing food security and rural entrepreneurship.


SEC. 3. Definition of Terms. —
a. “Farmer Cluster Organization” refers to an organization established within each
geographical cluster of farmers, whether as a cooperative, association, or other

legally recognized form.

b. “Farmer Coopetition Hubs” are multi-purpose centers established or repurposed
within strategic farming areas that shall serve as:

1. A venue for the pooling and sourcing of farming resources;
2. A facility for drying, milling, and storing produce:

3. A center for the manufacture and marketing of agricultural and
derivative products; and

4. A site for cooperative activities and skills-building programs, including
for farm laborers.

c. “Government Farming Assistance” refers to agricultural inputs, machinery,
training, credit, subsidies, or services extended by national or local government
programs to farmer organizations.

4. “Coopetition” means collaborative arrangements between or among competing
farmer organizations to achieve mutual benefit.

SEC. 4. Clustering of Farmers. — The Department of Agriculture (DA), in
coordination with the Cooperative Development Authority (CDA), shall facilitate the
clustering of farmers based on geographic proximity, farming practices, and production
compatibility. Local government units (LGUs) shall assist in farmer profiling and
logistics coordination.

SEC. 5. Creation and Recognition of Farmer Cluster Organizations, -- Each cluster
shall form or designate a Farmer Cluster Organization, which shall be the preferred
conduit for government farming assistance. Technical support shall be provided by the
DA, the CDA, and other relevant agencies.

‘Nothing in this Act shall preclude other legally recognized and eligible farmer
organizations outside of established clusters from accessing government farming
assistance.

SEC. 6. Establishment and Functions of Farmer Coopetition Hubs. -- The DA, in
partnership with LGUs, private sector stakeholders, and Farmer Cluster Organizations.
shall:



a. Establish or repurpose existing infrastructure into Farmer Coopetition Hubs;

b. Prioritize cost-effective development using modular or mobile facilities, as
needed;

c. Integrate training, capacity-building, and cooperative marketing in hub
operations; and

d. Ensure fair access to services for member and non-member farmers.

The hubs shall be multi-purpose in design, capable of supporting rice, fruits.
vegetables, and value-added production.

SEC. 7. Management and Capacity-Building. - Each hub shall be managed by a
professional management team to be appointed or contracted in consultation with the
Farmer Cluster Organization. This team may be composed of experts in agri-business
operations and cooperative management, and may engage low-income farm workers in
hub operations and upkeep. Over time, capable members of the Farmer Cluster
Organization may be trained and integrated into management to build local
entrepreneurial capacity.

Such management may be undertaken through any of the following
arrangements:

a. Appointment by or contract with the DA and/or Provincial Government, where
teasible;

b. Public-Private Partnerships (PPP), joint ventures, or service agreements with
accredited agribusiness entities, cooperative development firms, non-profit
organizations, or entities with relevant experience: and

cc. Co-managed arrangements with the Farmer Cluster Organization, with phased
transition to farmer-led management once capacity is built.

The Implementing Rules and Regulations (IRR) shall detail the scope, selection,
and duties of the management team, as well as procedures for performance monitoring,
capacity-building, and transition to farmer-led management where feasible,

SEC. 8. Funding and Implementation. — To ensure frugal and sustainable
implementation:

a. National funding shall be sourced from the annual General Appropriations Act.
including the budget of the DA and its attached agencies:

b. National government agencies may also establish technical assistance grants,
and encourage blended finance models, including CSR programs and
performance-based incentives, to support hub management and sustainability;

¢. LGUs may allocate portions of their development funds;


d. The DA shall prioritize regions with high poverty incidence among rice farmers;

e. Donor support and corporate social responsibility partnerships are encouraged;
and
f. Existing public infrastructure may be repurposed to reduce capital expenditures.

SEC. 9. Inter-Agency Coordination. -- The implementation of this Act shall involve
the following:

a. DA,as lead agency;
b. CDA, for cooperative registration and training:

¢. Department of Trade and Industry (DT!), for market linkage and micro, small
and medium enterprise (MSME) integration;

d. Technical Education and Skills Development Authority (TESDA). for skills
development of farm laborers:

e. National Economic and Development Authority (NEDA), for monitoring and
evaluation: and

f. LGUs, for localized implementation and support services.

The CDA and TESDA shall lead capacity-building efforts for farmer
organizations, in partnership with higher education institutions (HEIs), the DA, and
LGUs.

A Joint Congressional Oversight Committee shall be created to monitor
progress, ensure compliance, and address bottlenecks to ensure timely implementation
and effectiveness.

The DA and NEDA shall jointly submit to Congress an annual report on the
implementation of this Act, including performance indicators (e.g., number of clusters
formed, number of operational hubs, income change of participating farmers, etc.),
outcomes, and identified gaps.

SEC. 10. Implementing Rules and Regulations. — Within sixty (60) days from the
effectivity of this Act, the DA, in consultation with relevant agencies and stakeholders,
shall promulgate the implementing rules and regulations.

SEC. 11. Separability Clause. -- If any part of this Act is declared unconstitutional or
invalid, the remainder shall not be affected.

SEC. 12, Repealing Clause. — All laws, decrees, orders, rules, and regulations
inconsistent with this Act are hereby repealed or modified accordingly.


SEC. 13. Effectivity. -- This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in at least two (2) national newspapers of general circulation.

Approved