REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOusEBfLL-ir;.     5588
Introduced by Representatives DAVID "JAY-JAY" C. SUAREZ
and ANNA MARIE VILLARAZA-SUAREZ
EXPLANATORY NOTE
Under Article XII, Section  1 of the  1987 Constitution,  it provides that "[t]he goals of
the national economy are a more equitable distribution of opportunities, income, and
wealth;  a  sustained  increase  in the  amount of goods and  services  produced  by the
nation  for the  benefit  of the  people;  and  an  expanding  productivity as the  key  to
raising  the quality Of life for all,  especially the  underprivileged. The creation  of the
Fertilizer   and    Pesticide   Authority   (FPA)    is   fundamentally   anchored   from   this
constitutional provision to assure that the agricultural sector has an adequate supply
of  fertilizer  at  reasonable  prices,  rationalizing  the  manufacture  and  marketing  of
fertilizing.
However, with the increasing prices of fertilizers, the FPA which was mandated under
Presidential  Decree  144  to  contril  and  regulate  all  marketing  companies,  whether
importer,  indentor,  wholesaler  or  retailer  by  managing  and  handling  prices,  terms,
mark-ups,  distribution  channels,  promotion,  storage,  and  other marketing factors  in
the domestic fertilizer market could only attribute it to the market power of importers
after the removal  of price caps that came with  the  industry's  liberation.  Because of
the  Trade   Liberalization  Act,  the  FPA  cannot  impose  price  ceiing   in  the  sale  of
fertilizers.  In  addition,  the  COVID-19  pandemic  has  imposed  challenges  in  the  food
systems  as countries change their trade  policies,  yielding  to  successive  increases  in
world market prices leading to the pump in the local cost of fertilizers.
As we know it, the price of fertilizers and other agricultural  inputs take part in a huge
consideratble percentage of our farmers' production cost, thereby causing a massive


dent against the income of our famers. With the present situation on the increasing
prices of fertilizers, the high cost of the same has become an added burden to the
Filipino farmers. This prompted them to situate themselves to no other recourse but
to accrue unnecessary loans, making the step Of reaching financial freedom miles to
reach.
It is incumbent upon Congress to identify, prioritize, and institute the necessary policy
intervention to provide immediate, effective, and sustainable relief for Filipino famers
amid the continuing spiraling of fertilizer costs.
As such, this proposed bill seeks to establish a national policy on instituting a National
Fertilizer Program (NFP) that will:
Present a poliey framework that will lay down the present challenges of the
fertilizer  industry,  identification  of  possible  continuing  solutions,  and  the
appropriate roadmap towards sustainability on domestic fertilizer production
and utilization;
Immediate  grant Of financial  relief to  our farmers  by  appropriating  initial
funding  in  the  amount of Twenty  Billion  Pesos  (Php  20,000,000,000.00).
The  same  consists  of Ten  Billion  Pesos  (Php  10,000,000,000.00)  to  be
allocated for actual subsidy for our farmers. The other Ten Billion Pesos
(Php 10,000,000,000.00) is for NFP establishment and operationalization.
The long-term goal of this measure is for the NFP to develop locally produced fertilizers
with the highest quality and lowest possible prices so that the production cost of our
farmers will eventually decrease, influencing an upward curve for their income.
In economic terms, it is understood that the price increase will result in a reduction in
fertilizer  input,  which  will  significantly  affect  productivity.  This  policy  proposal  to
support  our  famers  would   increase  local  fertilizer  supply  and  promote  market
competition to balance local prices. Intrinsically, the fastest way to address the rising
costs is through subsidies and must be handed out immediately to our beneficiaries
so as not to hamper production.
With the ongoing global trade uncertainties in this period of the COVID-19pandemjc,
sustaining  local  production  by  assisting  our  local  famers  would  support jobs  and
income for the agriculture sector and secure the country`s food availability throughout
the public health crisis.


REPUBLIC OF lllE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
\     ,  ^   .,
HOUSE BILL hlo.
Introduced by Representatives DAVID "JAY-JAY" C. SUAREZ
and ANNA MARIE VILLARAZA-SUAREZ
AN ACT
pRovlDING  FOR  A  NATloNAL  FERTILlzER  pnoGRAM,  ESTABLlsHING  A
FRAMEWORK        FOR        ITS        INSTITUTI0NALIZATI0N,        PROVIDING
MECHANISMS          FOR          ITS          APPROPRIATE          IMPLEMENTATION,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled :
Section  1.  54orf  77J/a.  This  Act  shall  be  known  as  the  "Oanga/ af 5/giv/a  „g
Magsasaka sa Abono ng Pag-Asa Act."
Sec.  2.  04z7.gct7.Mes. This Act aims:
(i.)        To  establish  a  national  policy  on  philippine  Fertilizer  program  that will
provide support mechanism, both short-term and long-term, to the farmers;
(ii.)      To  facilitate  farmers'  efficient  access  to  fertilizers  and  help  them  to
become self-sufficient in producing and using the same; and
(iii.)     To increase farm productivity and farmers' income.
Sec.  3.   Waf/ona/ ferl7./x?er  Program.  The  Department  of  Agriculture  herein
referred to as the "Department" shall  implement a  National  Fertilizer Program, which
shall   benefit  qualified  farmers.  The   national  fertilizer  program   shall   refer  to  the
Philippine  Fertilizer  Program  (PFP)  and  shall  ensure  that the  following  precepts  are
central in the preparation thereto, namely:


(i.)
(ii.)
will   contribute   to   the   self-sufficieney   of  fertilizer   production   in
ensuring a well-crafted balance between economic development and
resource enhancement;
(iii.)            Enjoin     the     relevant    non-government    organizations,     people's
organizations,  and  the  private  sector to  take  the  lead  in  initiating
(iv.,          EF?igstratTesj::ic#:tiiTnp:ofY::a,=oemrsL3:?tf:s:ii:ic%ing the indigenous
people,    by    providing    them    the    necessary   assistance    in    the
determination    of    economic    opportunities    that    will    concretize
(v.)
Secure that the right of the farmers to balanced and gainful access
to   agriculture   opportunities   through   the   promotion   of  activities
geared towards agricultural sustainability;
Establish a framework for the utilization of available technology that
sustainability and the full enjoyment of the benefits thereof; and,
Envision   a   vibrant  rural   economy  by  transforming  the  country's
fertilizing system to obtain a strong food value chain and affordable
and nutritious foods.
Sie!c. 4.  Development of Locally-Produced  Fertilizers. The rlrimarv  cirtyedrve is
for  the  National  Fertilizer  Program  to  develop  locally  produced  fertilizers  with  the
highest quality and lowest possible prices so that the production cost for our farmers
will eventually decrease and their income will subsequently incliease. The Fertilizer and
Pesticide Authority is hereby mandated to assure the agriculture sector of an adequate
supply of fertilizer at reasonable domestic market prices, rationalizing and  innovating
the production and marketing of fertilizer, and protect the public from relevant risks.
Provided,  that the  Department  shall  ensure  that the  development  of locally-
produced  fertilizers  is consistent with the  national  policy on  organic agriculture,  with
the  appropriate development of production  systems through technological  utilization
as  assisted  by  the  Department  of Science  and  Technology  (DOsl)  as  a  means  to
promote domestic sufficiency and sustainability.
Sec. 5. f€rfz./I?er5cjb5M.dy. The Departhient, together with the National Economic
Development Authority (NEDA), shall provide an economically acceptable percentage
of fertilizer subsidy to qualified farmers from the cost of procurement of such fertilizer,
based  on  prevailing  market forces.  Provided,  that the  Department shall  initiate the
necessary immediate intervention in the provision of such subsidy for cases when the
prices of fertilizers are high.
Sec. 6, /ZJgnfz.#caf/a" of&ne#c/a"'es. All farmers registered under the Registry
System   for  Basic  Sectors  in  Agriculture   (RSBSA)   are  qualified   to   be   considered
beneficiaries   of  the   subsidy   under  the   NFP,   regardless   of  tenurial   status   and
landholding in the identified areas where the majority of the RSBSA-registered farmers
are  located.  The  Department  shall  establish  a  regional  electronic  database  for  the


RSBSA  that  contains  the  names,  contact  information,  and  addresses  of  farmers
qualified to avail of the subsidy under the program. Any unauthorized sharing or use
of any  gathered  data  shall  be  subjected  to  violations  with  corresponding  penalties
under existing laws.
In  addition,  the  beneficiaries  shall  be  a  bona  fide  member of the  respective
Provincial  Farmers  Federation  or  Association,  or  any  equivalent  to  such,  formally
endorsed  by  the  corresponding  Provincial  Agriculture  Office,  as  authorized  by  the
Provincial Government.
Sec.  7.  fa/777 £/Mgivbw'//fy. The following are the eligibility requirements for farms:
The farm must not be part of a riverbed, lakebed, marshland, shoreline,
or riverbank;
The farm must have adequate irrigation and drainage systems. Provided,
that for cases of rain fed areas, it shall still be eligible in due consideration
of  the  farmers  engaged  in   propagating  drought-tolerant  vegetables
during the dry season;
-The farm must be accessible to regular means of transportation; and
The farm must be suitable for production purposes.
Sec. 8. „ec:ha#;ts of Jmp/Em€ofaf7.a". The Depaltment is hereby mandated to
ensure  that  the  following  mechanics  shall  be  required  and  complied  with  for  the
implementation of this Act.
(i.)              The  beneficiaries  shall  be  required  to  register with  a  government-
issued  identification card;
(ii.)             The Department shall facilitate the necessary training on the farmer-
beneficiaries for the proper use of the subsidized fertilizers;
(iii.)            The  Department shall enable the active engagement of the provincial
Association of Farmers in agri-supply trading and  shall  enjoin  active
participation in the relevant bidding or procurement process; and,
(iv.)            The  report  of  qualified  farmers  and  actual   beneficiaries  shall   be
submitted to the Commission on Audit every quarter.
Sec.  9.  Swam/55/an of pnctyram Ae;c}orr. The Department shall annually submit
to the Agricultural Committee of both Houses of Congress a report indicating the status
of implementation of the program. Each report required shall include, for the one-year
period ending on March  1 of the year in which the report is submitted the following:
(i.)  The number of farmers that are selected in the program;
(ii.)      Summation of information regarding the demographic characteristics of
the farmers;


(iii.)     Description  of the  steps taken  by the  Department to  help  the  farmer-
beneficiaries;  and,
(iv.)     An assessment of the success or failure of the program on the standards
of increasing production and improving the living condition of the farmers,
Sec.  10. A4prclf7r/a£7.ans. An initial amount of Twenty Billion Pesos
(Php 20,000,000,000.00) shall be allocated to implement this Act and shall be divided
into two (2) portions for the initial implementation of this Act, an amount of Ten Billion
Pesos (Php  10,000,000,000.00) for the provision of subsidy and the other Ten Billion
Pesos (Php  10,000,000,000.00) for the operationalization of the program are hereby
authorized to be appropriated from the National Treasury. Thereafter, such sums as
may  be   necessary  for  the   implementation   of  this  Act  shall   be   included   in   the
succeeding General Appropriations Act (GAA).
Sec.  11.  #€pca//.ng  Cyaws€.  -  All  laws,  decrees,  executive  orders,  rules  and
regulations, issuances, or parts thereof inconsistent with the provision of this Act are
hereby repealed, amended, or modified accordingly.
Sec.  12. 5Ef}arz34w'//fy Crac{se. -If any part, section, or provision of this Act shall
be held invalid or unconstitutional, no other part, section, or provision thereof shall be
affected thereby.
Sec.  13. fivect7.iwfy. -This Act takes effect fifteen (15) days after its publication
jn the  CWc7b/ GaLz£#g or at least two (2) national newspapers of general circulation.
Approved,