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Republic of the Philippines \ x2

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO._3375

Introduced by Representative Sharon S. Garin

EXPLANATORY NOTE

Corn is second to rice as the most important crop in the Philippines, with one-
third of ino farmers, or 1.8 Million farmers, depending on corn as their major
‘source of livelihood. White corn, particularly, is the most important substitute staple
in periods of rice shortage, especially for people in rural areas. Yellow corn, on the
other hand, is the primary source of feeds for the Philippines’ animal industry, and is
being increasingly used by the manufacturing sector.

According to DA Secretary Pifiol, the yellow and white corn harvest for 2017 is
expected to hit 8.1-million metric tons (MT), a surplus of about two million MT since
the country’s domestic requirement is only 5.6-million MT. This rare surplus in
domestic supply means we could export corn for the first time, with Malaysia, Taiwan
and South Korea as possible buyers. The DA credits this upswing to ideal planting
climate and the use of hybrid seeds.

However, despite all this good news, our corn production is still inefficient
when compared to major corn-producing countries like Thailand, Argentina, and the
United States. The cost of production in the Philippines is still high, leading
expensive prices when compared to low-cost, low-priced corn of our competitors.
This could prove the prospect of exporting corn still challenging.

The increase in corn production though, could also lead to certain health
benefits. There's no denying that the Philippines is primarily a rice-consuming
country. However, current medical consensus is that higher consumption of white
rice can cause Type 2 diabetes. This is particularly troubling with the poorer sectors
of society who mostly spend their entire food budget just on rice. A sustainable and
surplus corn production means we can use more of it as food, particularly as a rice
substitute, instead of animal feeds. Less consumption of rice in favor of corn could
hopefully lessen the country’s risk for diabetes.


This boon in corn production is a step in the right direction, and we must
institutionalize these current effective practices, while still continuing to research and
introduce additional support for the farmers and the industry, if we are ever to reach
a competitive corn production sector.

This bill provides for various Productivity Improvement Programs for the corn
industry. This includes socialized credit, a farm management and technical
assistance services, and farm mechanization, among others. Personal assitance to
corn farmers are also provided for through, capacity building, skills training,
scholarship programs and other human resources development projects.
Infrastructure support is also given through the construction of farm-to-market roads
and irrigation services.

Just like its color, the progress and development of corn and the corn
industry, is a golden opportunity for the Philippines. Through this legislation, we not
only get to take care of our farmers, but we also get develop a most crucial crop in
our agricultural sector. All these advancements leads us a step closer to a food
secure Philippines.

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

(ON S. GARIN
1S-Owa Partylist


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

3375
HOUSE BILL NO.

Introduced by Representative Sharon S. Garin

AN ACT
PROMOTING AND SUPPORTING THE DEVELOPMENT OF THE CORN
INDUSTRY AND FOR OTHER PURPOSES

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 “Corn Industry
Development Act of 2016.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State
to promote and support the development of the corn industry, increase the income of
com farmers and farm workers through improved productivity, product diversification
and employment generation.

For these purposes, the State shall establish productivity improvement
programs, provide the needed infrastructure support, enhance research and
development on product diversification, provide human resource development and
extension services, and provide financial assistance to small corn farmers and farm
workers.

SEC. 3. Corn Industry Development Committee — The Corn Industry
Development Committee, hereinafter referred to as the Committee, is hereby created

under the Office of the President, and shall be composed the following members:


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a)

b)

°)

d)

e)

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Secretary of Department of Agriculture (DA) as Chairman;

Secretary of Department of Labor and Employment (DOLE);

Director General of Technical Education and Skills Development Authority
(TESDA);

Secretary of Department of Science and Technology (DOST);

Secretary of Department of the Interior and Local Government (DILG);
Commisioner of Commission of Higher Education (CHED);

Commisioner of Professional Regulation Commission (PRC);

Secretary of National Economic Development Authority (NEDA);
Secretary of Department of Transportation and Communications (DOTC);
Secretary of Department of Public Works and Highways (DPWH);
Representative of Philippine Ports Authority (PPA);

Representative of National Irrigation Administration (NIA);

m) Secretary of Department of Environment and Natural Resources (DENR);

n)

Commisioner of Bureau of Customs (BOC);
The Committee is hereby mandated to implement the provisions of this act.

SEC. 4, Productivity Improvement Programs. - To boost the production of

corn, and increase the incomes of corn farmers and farm workers, the following

Productivity Improvement Programs shall be implemented:

a) Farm Support Program - The Committee, particularly Department of
Agriculture (DA) shall make available a support program which shall
include, among others, the provision of socialized credit, and a farm
management and technical assistance services.

(i) Socialized credit shall be made available, through the Land

Bank of the Philippines (LBP), for the acquisition of farm inputs,


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farm machineries and implements necessary for the continuous
production of corn: Provided that the loans shall be made
available to corn farmers duly registered with the DA: Provided,
further, that the lender shall have a lien on the harvest of
farmers who obtained the loan until the crop loan is fully paid
Provided, finally, that farmer borrowers cannot be granted
another loan until existing loans are fully paid

(ii) Farm Management and Technical Assistance Services - The
Committee, particularly the DA, the Department of Labor and
Employment (DOLE), the Technical Education and Skills
Development Authority (TESDA), state universities and colleges
(SUCs), and other concerned private and non-government
organizations (NGOs), shall formulate and implement a
deployment program of agricultural engineers, agriculturists and
farm technicians for the provision of farm management and
technical assistance services to corn farmers.

b) Farm Mechanization Program - Corn farmers and farm workers shall be
encouraged and trained to utilize appropriate agricultural machineries and
equipment necessary for the efficient planting, cultivation, care and
maintenance, harvesting and handling of and corn and its by-products.
The Committee, particularly the DA, in partnership with local government
units (LGUs), consistent with the provisions of Republic Act No. 10601,
otherwise known as the Agricultural and Fisheries Mechanization Law,

shall:


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(i) Introduce and expand the use of machineries for the different
‘stages of and corn farming; and,

(ii) Formulate and implement a Corn Farm Mechanization Program
at the barangay level.

To develop and deploy appropriate machineries and equipment, the
Committee particularly the DA, through its research centers, in collaboration with the
Philippine Center for Post-Harvest Development and Mechanization, the Bureau of
Agricultural Research, SUCs, other concerned government agencies, and industry
stakeholders, shall formulate and conduct research development and extension
programs for corn farm mechanization and engineering.

SEC. 5. Research and Development. - The Committee, particularly the DA,
in coordination with the Department of Science and Technology (DOST), as well as
relevant SUCs, and government research and development institutions, and the
private sector, shall intensify researches on high yielding or flood resistant corn
varieties; pest control and prevention; latest farming and harvesting technologies;
soil analysis and fertility mapping of com areas; weather monitoring and climate
change adaptation measures; and other viable products that can be derived from
com.

SEC. 6. Extension Services. - Extension services that can be provided shall
include, but not limited to, provision of technical assistance and advice, conduct of
tests, propagation, and dissemination of high yielding varieties, and operation of
demonstration farms.

SEC. 7. Human Resources Development. — The Committee, particularly the
DOLE, in collaboration with the DA, the Commission of Higher Education (CHED),

the TESDA, the Professional Regulation Commission (PRC), and the private sector,


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shall formulate and implement a Human Resources Development (HRD) Master

Plan for the corn industry which shall include, but not limited to, the following:

a) Capacity-building, skills trainings, institutional strengthening of com industry
workers and small farmers and their organizations to actively contribute in
productivity and competitiveness;

D)

Conduct of capability trainings or attendance to local or international trainings
and seminars by corn farmers and farm workers on the latest technologies
related to corn farming and production of other products from corn;

°)

Formulation and implementation of competency standards and training
regulations for technical vocational education and training for the corn
industry by the TESDA,

d)

Scholarship programs for the underprivileged but deserving college and post-
graduate students who are taking up courses in relevant fields of discipline in
SUCs which have programs in agriculture, agricultural engineering and
mechanics, and chemical engineering; and for vocational courses and skills
development for farmers and farm technicians and skilled corn farm workers;
and,

C)

Upgrading of facilities, faculty development and strengthening of the on-the-
job training programs for agri-based higher education institutions in corn
areas towards the production of highly employable and globally competitive
graduates needed by the corn industry.

SEC. 8. Infrastructure Support. - To facilitate the transport, marketing and

export of corn produce and other products derived therefrom, and complement
productivity improvement measures in this Act, transport infrastructures, farm-to-

market roads and irrigation facilities shall be provided.


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a) Transport Infrastructures — The National Economic Development Authority
(NEDA), the Department of Transportation and Communications (DOTC), the
Department of Public Works and Highways (DPWH), and the Philippine Ports
Authority (PPA) shall include in their annual Development Plans and Priority
Investment Programs the immediate construction and/or improvement of
existing transloading ports for coast-wide transport, sale or export of corn
products in key corn producing areas.

b) Farm-to-Market Roads — The NEDA, the DA, the DPWH, and concerned local
government units (LGUs), shall include in their annual Priority Investment
Programs the immediate construction and/or rehabilitation of farm-to-market
roads in key corn producing areas.

ic)

Irrigation — The National Irrigation Administration (NIA), the Bureau of Soils
and Water Management (BSWM), and concerned LGUs, in coordination with
the DA, shall construct appropriate, efficient and cost effective irrigation
facilities, pump and other pressurized irrigation systems, rain capture and
water impounding facilities in corn producing areas. The DA and NIA shall
include in its annual budget the item or provision on construction and
rehabilitation of irrigation facilities, rain capture and water impounding
facilities in corn producing areas.

SEC. 9. Classification and Regulation of Supply of Corn. - The
Committee, particularly the DA, in the exercise of its regulatory authority, shall
classify imported corn according to their appropriate classification when imported at
a time that domestic productions are sufficient to meet domestic requirements. The
Bureau of Customs (BOC) shall require importers or consignees to secure form the

DA the classification of the imported corn prior to its release.


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SEC. 10. Appropriation. - \n the succeeding years from the effectivity of this
Act, the amount of Two billion pesos (P 2,000,000,000.00) shall be appropriated
annually and to be allocated as follows :

a) Twenty percent (20%) for socialized credit under the Farm Support and farm
Mechanization Programs;

b) Fifteen percent (15%) for research and development, capability-building and
technology transfer activities under Research and Development, Extension
Services and Human Resources Development;

c) Fifteen percent (15%) for scholarship grants to be provided under paragraph
(d) of Section 7 of this Act; and,

d) Fifty percent (50%) for infrastructure support programs.

In the identification and prioritization of specific programs and projects, the
Committee, particularly the DA shall conduct prior consultations with corn farmers
and farm workers, and producers of corn by-products. The Committee shall issue the
necessary guidelines for this purpose.

SEC. 11. Implementing Rules and Regulations. - The Committee, in
consultation with concerned government agencies and corn industry stakeholders,
shall issue the implementing rules and regulations of this Act within ninety (90) days
from the effectivity of this Act.

SEC. 12. Separability Clause. - |f any provision of this Act is declared
unconstitutional, the validity of the remaining provisions hereof shall remain in full
force and effect.

SEC. 13. Repealing Clause. - All laws, decrees, executive orders and rules
and regulations or parts thereof inconsistent with any provision of this Act are hereby

repealed, modified or amended accordingly.


SEC. 14. Effectivity Clause. - This Act shall take effect after fifteen (15) days
from its publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,

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