Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No._5835_

Introduced by Representative ANA CRISTINA SIQUIAN-GO

AN ACT ESTABLISHING
THE PHILIPPINE CORN RESEARCH INSTITUTE
AND APPROPRIATING FUNDS THEREOF

EXPLANATORY NOTE

This bill seeks to establish the Philippine Corn Research Institute
(PhilCom) that shall unify, coordinate, fund, implement, and strengthen all corn
research and development (R&D) as well as manpower training and extension of
technologies on corn and corn-based farming systems for the production of more
food, feeds, forage, industrial materials, and bioenergy purposes, including those
subsequent (or rotation) crops that are grown after rice in rainfed farms and in
dryland and marginal upland farms in the country.

The national government affirms its goal of ensuring the country's food,
feeds, forage, and bioenergy security through the development of a modern, highly
Productive and efficient, and competitively secured agriculture. The success in this
new and comprehensive venture of modernizing corn production and its
industrialization would tremendously help improve and advance people's
employment and livelihood opportunities and thus reduce poverty and hunger,
particularly those in the rural areas. Therefore, it is important to identify our target
areas and to consider as well the vulnerable upland and dry-land agro-ecosystems:
where many of the resource-poor farmers, particularly the corn farmers, grow their
food and feed crops, including poultry and livestock.

Corn is the second most important national food crop next to rice. It serves
as the staple food of 20 percent of the Philippine population. Furthermore, corn is
the main component of up to 75% of formulated feeds for livestock, poultry, and
aquaculture fishery.

Corn is grown mainly in rain-fed farms after rice is harvested, and in upland
and dry-land farms, including steep hillsides, in over 2.5 million hectares, mostly in
Mindanao, Cagayan Valley, Ilocos Region, Central Luzon, Central Visayas, and
Palawan.

The current national grain yield in various ecological regions is still low,
ranging from 0.5 to 2.5 tons per hectare in resource-poor areas although yields
can be as high as 6 to 10 tons for hybrid com varieties in few favorable farm
environments, suggesting that there is bright prospect in further increasing com
vields in specific farm sites. Consequently, the country needs to improve the


Stabilize food security and nutrition among our rural population. We can also target
the export markets over the medium- and long-term view.

The demand for both white com as human food and yellow com as animal
feeds and for industrial uses has been increasing rapidly because of the high
demand of our growing human population, the ‘expanding livestock and poultry
industries, and the rapid growth of the emerging industrial and bioenergy program
(Republic Act No. 9367, The Biofuels Act of 2006) designed to augment imports of
fossil-based fuel as energy source.

Of the major crops, other than rice that support the national economy, corn
and com-based farming systems (including crops planted after com such as grain
/egumes) are the most neglected in research support with an allocation of less than
0.05 percent of the gross value added (GVA) compared to rice at 0.25 percent,
coconut at 0.30 percent, and sugarcane at 0.5 percent.

The Philippines has more than three million hectares of upland and dry-iand
areas inhabited by about five million households, most of whom are very poor
especially those in Southem Mindanao, Central and Eastern Visayas, parts of
Western Luzon, Palawan, and the Bicol Region.

Recurrent droughts and typhoons, environmental degradation due to short-
duration and erratic rainfall, recurring El Nino and climate change phenomenon,
soil infertility and inaccessibility of high quality crop seeds aggravate the low
Productivity and untold sufferings of poor com farming communities.

The millions of degraded lands and infertile soils in the upland and dry-land
areas without irrigation facilities, however, comprise an untapped potential
resource for the growing of drought-tolerant com and corn-based cropping
Systems such as, for example, sorghum and grain legumes for food and feeds.
However, when properly managed, these crops will help ensure household food
Security and sustainable farm productivity.

In the Philippines, there are well established research institutes devoted to
major crops and disciplines such as: rice, coconut, sugarcane, fiber and abaca,
cotton, silkworm, tobacco, root crops, biotechnology, plant breeding, crop
Protection, farming systems, irrigation, carabao, dairy, fishery, hogs, farm
mechanization and post-harvest, and other strategic commodities and disciplines.

However, there is no such similar institute, unfortunately, that is devoted to
crops such as corn and corn-based farming systems that includes crops such as
‘sorghum and grain legumes that are important as food, feed, forage, and fuel.

. it is time to establish the Philippine Cor Research Institute
(PhilCorn).

Globalization and climate change require that the country must enhance its
capability to continuously develop cutting-edge technology and agricultural
innovations that will enable com farmers to become prosperous by increasing the
productivity and quality of their produce through modem farm planting practices,
harvesting, processing, and packaging techniques for the domestic and global
markets.

From these observations, it is clear that there is an urgent need to establish
@ oroactive. moder aaricultural research and extension institute — The Philippine


1 To unify, coordinate, fund, implement, and strengthen all
national and farm-level efforts on RDE for corn and corn-based farming
systems for food, feeds, forage, and fuel;

z To hasten technology sharing activities that will improve the
livelihood of resource-poor farming communities and empower them to
cope up with low yields owing to frequent occurrences of drought, warming
temperatures, land degradation, and other risks arising from environmental
calamities and climate changes;

3. To insure adequate and stable supply of quality corn products
for domestic and foreign markets, and

4 To improve the economic condition and income of farmers in
the upland and dry-land regions of the country.

In view of the foregoing information and in order to dramatically reduce
Poverty and improve people's employment and livelihoods, particularly those in the
tural areas, and to ensure the country's food sufficiency and energy security,
approval of this bill is highly and earnestly recommended.

ANA CRISTINA SIQUIAN-GO
2” District, Isabela


Republic of the Philippines
House of
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No._5835

Introduced by Representative ANA CRISTINA SIQUIAN-GO

AN ACT ESTABLISHING
THE PHILIPPINE CORN RESEARCH INSTITUTE
AND APPROPRIATING FUNDS THEREOF

Ee ar comets md the House of Raprasentstives ofthe Ping ries
in Congress assembled:

SECTION 1. Short Title. This Act shall be known as the Philippine Corn
Research Institute Act.

SECTION 2. Philippine Corn Research institute. The Philippine Comm Research
Institute, hereinafter referred to as PhilCorn, is hereby established as a body
corporate attached to the Department of Agriculture (DA)to modemize the corn
industry and consequently improve the livelihood and household income of
resource-poor corn farmers in the rain-fed, upland, and dry-land farming
communities and to empower farmers with the tools of science and technologies
so that they can cope up with problems of low yields, droughts, floods, land
degradation, global warming, and other risks arising from environmental and
climate changes.

SEC. 3. Objectives. The objectives and goals of this Act are as follows:

a) To develop and implement a strong, dynamic, and innovative farmer-centered
and need-based national corn research and development, technology sharing,
training, and extension programs;

b) To strengthen the national capacity for corn research and extension, modernize
production and utilization as well as industrial processing of com and corn-based
crops, diversify harvests through sequential crops to sustain soil health and fertility
and thus enhance long-term higher productivity and household income;

Cc) To improve the livelihood and economic conditions of small-scale and resource-
poor farmers who are growing corn after rain-fed rice as well as in upland and dry-
land farming ecosystems;

d) To work closely with regulatory agencies such as BPI (i.e. National Seed Quality
Control , NSQCL; Quarantine Division, and National Seed Industry
Council, NSIC), Bureau of Agriculture and Fisheries Standards (BAFS), and
private stakeholders (i.e. PhilMaize) and NGOs in the collection, conservation, and
utilization of endemic or traditional corn varieties as well as in the experimentation,
dlantina. and monitorina of com hvbrid and genetically engineered varieties:


8) To develop and implement sustainable and environment-friendly com and com-
based farming systems in the vulnerable and marginal areas like sloping terrains
and evaluate those areas where crops other than corn may be more appropriate
to grow,

f) To gather and provide reliable, up-to-date data to guide policy makers with
regard to com improvement and development, import and export volumes, and
Season sting linkages among stakeholders in promoting the national com

g) To expand employment opportunities through com and corn-based farming
systems in the rural areas, and ultimately promote the general welfare of the
People through higher efficiency and profitability in production, industrial products
development, processing, and marketing,

h) To initiate and undertake such other related programs in consultation and
partnership with the DA-Bureau of Agricultural Research (DA-BAR), the DA
regional research centers (DA-RIARCs), the Philippine Council for Agriculture,
Aquatic Resources, Forestry, and Natural Resources Research and Development
(PCAARRD), State Colleges and Universities (SCUs), and the private sector.

SEC. 4. Principal and Regional Offices. The PhilCom shall have its principal
office at the Isabela State University as the Board of Trustees may decide. It may
also establish other offices, branches, satellite offices, or subsidiaries in any
geographically suitable region in the Philippines that are major producers of corn
and as may be necessary or proper for the accomplishment of its purposes and
objectives.

‘SEC. 5. Duties and Functions. The PhilCom shall exercise the following duties
and functions:

@) Unify, Plan, fund, conduct, monitor, and evaluate corn research,
development, and technology promotion in different scientific and
technological fields and programs, including but not limited to the following
thrusts: (1) germ plasm collection, conservation, breeding, and biotechnology;
(2)natural resources management, watershed conservation, drought
adaptation and mitigation; (3) com engineering, farm mechanization, and
postharvest management, (4) flag surveillance, early warning system,
integrated pest management, and biological control methods; (5) socio-
economics, impact assessment, and policy advocacy;(6)technology
packaging and demonstration, promotion and deployment, training and
‘communication; (7) processing and industrial-chemical products development;
and (8) corn-based farming systems, farm management improvement, and
experiment station development.

b) Unify, lead, fund, and coordinate 2 national network of corm and corn-based
farming systems research and extension agencies, centers, and stations
located in the different agro-ecological regions of the country where corn is a
major crop;

¢) Develop technologies suitable for the rain-fed, upland, and dry-land agro-
ecosystems that will maximize the productivity and quality of locally grown corn
and corn-based crops while also reducing production costs and ensuring long-
term and sustainable com and corn-based production systems through genetic
imorovement and environmental resources and conservation measures;


d) Enhance income of corn farmers by developing suitable corn-based crops
and livestock farming systems as well as crop rotations where applicable;
value-adding com technologies including on-farm verification, processing,
packaging, marketing, and promotion of economically viable technologies as
well as entrepreneurial skills, giving emphasis on those aspects necessary for
group endeavors of small-scale farmers, cooperatives, and seed growers;

®) Develop databases needed in the identification and preparation of
necessary policy recommendations towards efficient, highly productive and
competitive com industry and com-based farming systems through
appropriate socio-economic measures and public-private sector mobilization
and participation;

f) Organize and develop strong training and communication programs for corm
and com-based farming systems scientists, research managers, and
extension specialists to enable them undertake effective and timely technology
promotion of packaged technologies among clusters of farmers and corporate
growers by utilizing moder extension systems such as information, education,
and communication (IEC) technology and participatory social mobilization
procedures;

g) Publish and disseminate research and extension findings and
recommendations through scientific journals, books, technical and extension
bulletins, videos, and other print and communication channels.

SEC. 6. Corporate Powers. The PhilCorn shall exercise the following corporate
Powers:

a) Exercise all the powers of a corporation under the general corporation
law, in so far as such powers are not inconsistent with the provisions of this

b) Enter into, make and execute contracts and agreements of any kind or
nature, and to sue and be sued in its corporate name;

c) Borrow funds and obtain loans from all sources, whether local or foreign
and whether government or private, to help finance its research programs and
its capital and operating expenditures, or support to farmer entrepreneurial
activities;

) Invest in, purchase or otherwise acquire, own, lease, mortgage, pledge,
sell, assign, convey. exchange, encumber, borrow, or otherwise deal in real
and/or personal properties of whatever kind and nature, or any interest therein,
including shares of stock, bonds, notes, securities, and other evidences of
indebtedness of natural or juridical persons, whether domestic or foreign and
whether government or private;

e)Receive and acquire from any person, government and private entities,
whether foreign or domestic, or from any corporation, partnership, association
or other entity such characters, licenses, franchises, rights, privileges.
concessions, assistance, grants, donations, loans, and contributions
consisting of such properties, real or personal, including funds and valuable
effects, as may be useful, necessary or proper to finance its research, capital
and operating expenditures or otherwise carry out its purposes and objectives,
and to administer the same in accordance with the terms and agreement


franchises, rights, privileges, assistance, financial or otherwise and
concessions as may be conducive to and necessary or proper for the
attainment of the purposes and objectives of PhilCom.

‘SEC. 7. Board of Trustees. The Board of Trustees, hereinafter referred to as the
Board, Shall exercise all the corporate functions and powers of the PhilCorn and
shall control all its businesses, activities, and properties that are relevant to the
goals and functions of the Institute.

a)The Board shall be composed of the Secretary of Agriculture or his
designate as ex-officio Chairperson and fourteen (14) members from the
following agencies and sectors: Executive Director of the Philippine Council
for Agriculture, Aquaculture, Forestry, and Natural Resources Research and
(PCAARRD) of the Department of Science and Technology
(DOST) who will act as Co-Chairperson; Director of the Bureau of Agricultural
Research (BAR) who will act as Vice-Chairperson; Regional
Executive Director (RED) representing the DA Regional Field Offices (DA-
RFOs); Undersecretary of the Department of Budget and Management (DBM);
Director of the Agriculture Division of the National Economic and Development
Authority (NEDA);Director of the DA-Philippine Council for Agriculture and
Fisheries (DA-PCAF); two (2) University Presidents from the State Universities
and Colleges (SUCs) representing major com producing and corn-based
agriculture regions; four (4) private sector representatives, namely: one each
from among the national outstanding corn farmers, farmers’ organizations or
federations (Philippine Maize Federations, Inc.), private companies engaged
in corn research and seed production, and the livestock/poultry industry; and
two (2) distinguished scientists from the public and private sectors. The
credentials of private sector representatives shall be evaluated and scrutinized
by competent members of the Board

b) The term of office of the members of the Board who are heads or officials
from their respective agencies or institutions shall be co-terminus with their
respective appointments; Provided, however, That the term of office of the
Regional Executive Director who represents the DA-RFOs where corn is a
‘major crop and the four (4) private sector representatives shall be for five years
without prejudice to a reappointment for another five years based on merits
and excellent performance in the Board. The PhilCorn Executive Director shall
‘serve as Secretary of the Board. All government officials in the Board shall
‘serve as ex-officio members and shall not receive any salary or compensation

c) The Chairperson, Co-Chairperson, Vice-Chairperson, and members of
the Board shall receive per diem, as the Board may determine, for each Board
meeting actually attended; Provided, however, That such members shall also
be entitied to reimbursable transportation and representation allowances in
going to and coming from board meetings and in transacting official business
for the Institute.

d) The Board shall meet regularly at least once (1) every quarter or as often
as the exigencies of the service demands. The presence of the Chairperson,
Co-Chairperson or Vice-Chairperson and at least seven (7) members of the
Board shall constitute a quorum and the majority vote of the members present,
there being a quorum, shall be necessary for the adoption of any resolution,
rule. reaulation. decision or any other act of the Board.


SEC. 8. Powers and Functions of the Board. The PhilCorn Board shall
exercise the following powers and functions:

@) To adopt by-laws and promulgate policies, rules, regulations, and
Procedures for the efficient and effective operations of the Institute;

b) To define and guide in the formulation of the vision, mission, strategy, and
fesearch-extension priorities, general plans and programs, and guidelines for
the proper operation and management of the PhilCorn in accordance with its
Purposes and objectives and in line with research planning and monitoring
Policies and procedures of PCAARRD and BAR;

¢) To approve the PhilCorn’s organizational structure and Staffing pattem,
operation and capital expenditures, and financial budget prepared in
accordance with its corporate plans;

d) To approve the plantilla and salary ranges, benefits, Privileges, bonuses,
scholarship and manpower development, housing facilities and ‘support to
staff, and other terms and conditions of service, including promotion systems
similar to those in the State Universities and Colleges (SUCs) and the
Department of Science and Technology (DOST) as well as life and medical
insurances and retirement schemes or benefits for all officers and employees
of the PhilCorn, upon recommendation of the Executive Director,

e) To appoint, promote, transfer, suspend, remove or otherwise discipline any
subordinate officer or employee of the Institute, upon recommendation of the
Executive Director,

f) To create such committee or committees and appoint the members thereof,
as may be necessary and proper for the management of the PhilCorn or for
the attainment of its purposes and objectives; and

9) To exercise such other powers and functions and perform such other acts
as may be necessary or proper for the attainment of the purposes and
objectives of the PhilCorn, or as may be delegated by the Secretary of
Agriculture or any competent authority through the Board of Trustees.

SEC. 9. Executive Director and Other Officers. The PhilCom shall be headed
by an Executive Director who shall be appointed by the President of the
Philippines, upon recommendation of the Board of the Trustees (BOT), based on
the findings and recommendations of a Search Committee duly organized and
commissioned by the Board for such purpose.

a) The Executive Director shall serve for a term of five (5) years, subject

to a one term extension of five (5) years for very meritorious performance, or a
maximum total of ten (10) years without further extension for any reason
whatsoever, Provided, however, That there shall be a reserved plantilla position of
the same salary rate for the outgoing Executive Director, if he is previously a holder
of a plantilla position at PhiiCom and shail not yet be of retirement age at the end
of his term as Executive Director; Provided, further, That the Board of Trustees,
through a Search Committee duly organized at least four (4) months earlier, shall
have chosen a new Executive Director who shall immediately assume office during
a turn-over ceremony on the expiration date of the term of office of the outgoing
Executive Director, Provided, finally, that no Officer-in-Charge shall be designated
as head of the Institute.


b) The Executive Director shall be assisted by two Deputy Executive Directors,
Division Heads, and Branch Station Directors or Managers as the Board may
determine, to carry out the purposes and objectives of the PhilCorn.

SEC. 10.Powers, Functions, and Duties of the Executive Director. The
Executive Director shall be directly responsible to the Board and shall have the
following powers, functions, and duties:

a) To exercise dynamic leadership, create a vision, map out the mission,
Provide strategic direction, and undertake systematic supervision over the
Planning and implementation of all research, development, technology sharing

Institute and, in general, administer and direct the management and operation
in a transparent and corrupt-free administration of the PhilCom;

b) To execute all contracts, incur obligations, acquire and dispose of assets,
and deliver documents on behalf of the PhilCom within the framework of the
authority delegated by the Board;

¢) To implement and enforce policies, decisions, orders, rules, and regulations
that are promulgated or adopted by the Board;

@) To arrange for the conduct of an External Program and Management
Review (EPMR) by a Panel of Experts every 5 years or as often as necessary
in order to understand the output and impact of PhilCom programs to the
farmers and stakeholders of the corn industry and to provide guidance to
management in charting the future of the institute; and

©) To exercise such other powers and functions and performs such other
duties as may be authorized, assigned, or delegated by the Board.

SEC. 11. Technical Advisory Committee. A Technical Advisory Committee
(TAC), organized and approved by the Board, shail assist the Executive Director,
Division heads, Program Directors, and Branch Station Directors or Managers in
Pursuing interagency activities and participation of the national RD&E network. The
TAC shall be composed of not more than nine (9) members, or as the Board may
designate, who are heads, representatives, or scientists and experts of agencies,
government or private, that are actively involved in any critical aspect of com
research, com-based farming systems, seed quality certification, training and
extension, production and processing, marketing and consumption, policy
advocacy, and capacity building. TAC members may be assigned to assist specific
Programs, divisions, or branch stations as the services may require in achieving
the goals and objectives of PhilCorn.

SEC. 12. Services of Government Personnel. The PhilCom may, for the
Purpose of its research, development, training, and extension activities, obtain and
secure the services of scholars and scientists as well as specialists in research,
training, extension, and communication of any unit, experiment station, institute or
center of the Department of Agriculture, University of Souther Mindanao, Central
Mindanao University, Visayan State University, University of the Philippines Los
Banos, Mariano Marcos State University, Isabela State University, Central Luzon
State University, and other agencies and universities of the national government
and foreign institutions. Those personnel of national and international reputations,
from public or private institutions, shall be designated as visiting scientists and
research fellows for a term of one year to five years to assist in conducting major


honoraria or incentives acceptable to all concemed and as may be fixed and
authorized by the Board.

SEC. 13. Buildings, Facilities, and Equipment. The PhilCorm is hereby
authorized to own, acquire, borrow, lease, plan, and construct or repair buildings,
laboratories, experimental farms, and other facilities as may be necessary or
Proper to attain its purposes and objectives. It may also utilize facilities of any unit
of any cooperating SUC, the Department of Agriculture, and of the national
government that is engaged, directly or indirectly, in activities that relate to
peels farming systems, corn production or products development of the com

2) The PhilCom is further authorized to purchase equipment, materials and
articles, either locally or abroad, as may be necessary or proper to carry out
its powers and functions and attain its purposes and objectives. It shall be
exempted from the payment of any and all forms of taxes, duties, fees and
charges on any and all such importation of equipment, materials, articles, and
‘services; Provided, however, That the same are not available locally on
favorable terms.

'b) The PhilCorn shall be authorized to expropriate lands for com and corn-
based farming systems research and development purposes provided that just
compensation is paid to the owners of the land. If the land belongs to the
government or is inalienable, the Institute is granted automatic title to the land.

c)Likewise, all lands, farms, plantations, whether directly or indirectly owned,
used, utilized or administered by the PhilCorn and those that it may hereinafter
acquire or utilize for research, training, extension and technology
demonstration, and seed production purposes shall be exempted from the
coverage of the Comprehensive Agrarian Reform Law.

SEC. 14. Appropriation. The Secretary of Agriculture and the Secretary of
Budget and Management are hereby authorized and directed to set aside out of
the existing funds of the Department of Agriculture the amount of Four Hundred
Million Pesos (P400M) as the initial fund of the PhilCom for CY 2017to be used for
its initial operations, including provisions for salary of personnel, conduct of
fesearch and technology promotion, construction of laboratories and other
physical infrastructures, purchase and development of experimental farms, and
acquisition and purchase of equipment for laboratories, farm development, and
offices. This initial amount shall be drawn from the DA National Corn Program,
BAR appropriations for research, RP-Japan Fertilizer Grant (KR-2), Public Law PL
480 (PL480), and/or any other existing bilateral funding sources in the Department
of Agriculture. Thereafter, the government contribution to the Institute's operations
shall be provided for under its own Key Budgetary Inclusion (KBI) in the Annual
General Appropriations Act. Furthermore, the PhilCorn Board of Trustees shall
‘seek financial support from foreign donors such as JICA. KOICA, AusAid, USAID,
and similar institutions for the establishment and improvement of PhilCorn
infrastructures, laboratory facilities, field experiment station development, and
training and scholarship of qualified personnel.

The annual appropriations herein provided shall be subject to the fiscal contro! and
management procedures provided for in Executive Order 714 of 1981. All funds,
savings, grants, and income of the PhilCorn shall constitute a revolving fund, to be
managed as Trust Fund, and shall be considered part of the funds automatically
released to the PhilCorn.


‘SEC. 15. Applicability of Civil Service Laws. The PhilCom and its officers and
employees shall be subject to the Civil Service Law, rules and regulations;
Provided, however, That all technical personnel shall be selected on the basis of
the highest possible standards of merit and fitness for public officials and
employees, preferably those with postgraduate degrees, to be determined in
accordance with such policies and guidelines as may be approved by the Board

SEC. 16. Auditor. The Chairperson of the Commission on Audit (COA) shall be
the Ex-Officio Auditor of the PhilCom. For this purpose, he may appoint a
representative who shall be the auditor of the PhilCom, together with the
Necessary personnel to assist the COA representative in the performance of his
duties.

SEC. 17. Legal Counsel, The Government Corporate Counsel shall be the Legal
Counsel of the PhilCorn; Provided, however, That the PhilCorn may establish its
‘own legal unit, subject to the supervision and contro! of the Government Corporate
Counsel, to handle the day-to-day legal matters affecting the affairs of the
PhilCorn,

SEC. 18. Annual Report. The Board shall submit to the President of the
Philippines through the Secretary of Agriculture an annual report, together with the
audit report on the relevant accounts, generally dealing with the activities and
Operations of the PhilCorn.

SEC. 19. Separability Clause. The provisions of this Act are hereby declared
separable. If any portion hereof shall be held invalid or unconstitutional, such
invalidity or unconstitutionality shall not affect the other provisions, which shall
remain in full force and effect in their entirety.

SECTION 20. Effectivity Clause — This act shall take effect fifteen (15) days
following its publication in two (2) newspaper of general circulation.

Approved.