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

Seventeenth Congress
Second Regular Session.

6278

HOUSE BILL NO.

Introduced by Representative Sharon S. Garin

EXPLANATORY NOTE

Com is second to rice as the most important crop in the Philippines, with one-third of
Filipino 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 com 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 com still challenging.

The increase in com 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 com 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 com production sector.


This bill provides for various Productivity Improvement Programs for the com
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 com 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.



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

Seventeenth Congress
Second Regular Session

HOUSE BILL NO. 6278

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 com 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:

a) Secretary of Department of Agriculture (DA) as Chairman;

b) Secretary of Department of Labor and Employment (DOLE);


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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 com 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, farm machineries
and implements necessary for the continuous production of com:

Provided that the loans shall be made available to corn farmers duly


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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.

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 - Com 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 com 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:

Introduce and expand the use of machineries for the different stages of
and corn farming; and,
Formulate and implement a Corn Farm Mechanization Program at the

barangay level.


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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 cor 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 corn.

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, 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;


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b) 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 com
farming and production of other products from com;

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

4) 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 com farm workers; and,

©) 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 com 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.

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 com products in key corn

producing areas.


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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.

©) 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 com
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

com prior to its release.

SEC. 10. Appropriation. - In 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;


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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 com by-products. The Committee shall issue the necessary
guidelines for this purpose.

SEC. 11. Implementing Rules and Regulations. - The Committee, in consultation
with concemed government agencies and com 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,