Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
Introduced by Representative GERALDINE B. ROMAN 
EXPLANATORY NOTE 
Based on data from the Philippine Statistics Authority, the over-all contribution of the 
agricultural industry1 to the country’s GDP has been declining. From 26% in 1960, it peaked 
at 31% in 1974 before gradually declining to 9.66% in 2017. In response, the current 
administration’s economic agenda has included the promotion of rural and value chain 
development geared towards increasing agricultural and rural enterprise productivity.  
Leading business journalist Michael Makabenta Alunan2 has strongly urged that 
reforms be fast-tracked for cooperatives “organizing for the poor…” Alunan emphasized that 
“without cooperatives, the poor as mere individuals who can hardly fend for themselves in the 
ruthless free market... Traders have no loyalty to producers, being margin players, whose 
interest is to maximize profits, at least cost and least effort, and they will not hesitate to import 
than buy locally to profit more.” 
“As individuals, farmers can never be efficient and competitive. They cannot afford 
mechanization, and it’s impractical to operate tractors on small plots. As cooperatives, 
however, farmers can afford better technologies, postharvest equipment, trucks and cold-
storage facilities to bolster production, achieve economies of scale, benefit from the full value 
chain and engage competitively in direct marketing”, Alunan said. 
With the rising prices of fertilizers, pesticides, seeds, farm inputs, farm equipment and 
implements, and rice tariffication in effect, our farmers can no longer successfully compete in 
the market. 
As originally intended, cooperatives were formed to promote the interests of less 
powerful members of society.3 Farmers’ cooperatives are unable to effectively promote the 
interest of farmers because  (a) it takes six to 12 months to get registered with the Cooperative 
Development Authority (CDA); (b) getting a seminar schedule alone takes two to three months; 
1 Agriculture is comprised of agriculture, hunting, forestry, and fishing. 
2 Lifted from: https://businessmirror.com.ph/2018/10/31/more-teeth-needed-for-cooperatives-to-wipe-out-poverty/. Last accessed on 07 
November 2019; 8:30pm. 
3 Article: Cooperatives and Community Development: A Perspective on the Use of Cooperatives in Development, by Majee and Hoyt. 
Published on Journal of Community Practice, Vol 19, 2011- Issue 1. 
August 10, 2022
5:00 pm
3492


(c) there is unrealistic “economic survey-business plan” requirement.”4 Moreover, the CDA is
the sole entity overseeing at least 21 cooperative types with a total of more than 18,000 actively
operating cooperatives. Finally, the benefits given to agricultural cooperatives are insufficient.
According to the Cooperative Statistics 2018 Report,5 there are 18,065 operating 
cooperatives in the country with around PhP 430 billion worth of assets. However, only a total 
of 1,392 cooperatives6 are within the agricultural sector. While the original legislation on 
cooperatives, the Rural Credit Law,7 aimed to protect and develop the country’s interest in 
agriculture,8 in 1990, the present Cooperative Code of the Philippines broadened the scope.9 
Although the success of cooperatives cannot be discounted, there is further need to 
institutionalize genuine agricultural cooperativism as a manifestation of the State’s desire to 
protect this sector.  
This bill seeks to provide more protection and benefits to strengthen agricultural 
cooperatives and simplify the process of registration. It aims to create an atmosphere where the 
agricultural sector will have the support it needs to be competitive in the open market through 
the following:  
1. Creating a Policy Board for Agricultural Cooperatives: The Policy Board shall be a
think-tank operating solely for the agricultural cooperatives. It is created to highlight
the importance of agricultural cooperatives and shall:
a) craft policies and strategic plans concerning the development of agricultural
cooperatives in line with the socio-economic conditions of the Philippines;
b) set directions to enhance the capacity of agricultural cooperatives and to
enhance the cooperation between and among agricultural cooperatives, private
sector, and development partners;
c) coordinate with concerned government institutions, private sector, and
financial institutions to support the operation of agricultural cooperatives; and
d) address issues and challenges hindering the implementation of the national
policy, and strategic and action plans for agricultural cooperatives
development.
2. Creating the Agricultural Cooperatives Board (ACB): While the ACB shall be under
the CDA and chaired by one of its existing Directors, it aims to serve only the needs of
agricultural cooperatives. This shall ensure that the dedicated board can focus on
developing the sector and shall:
a) support the functioning, operation, and development of agricultural cooperatives;
b) design strategic plan and training programs to promote, strengthen and develop
agricultural cooperatives;
c) manage the database of and provide training services for agricultural
cooperatives;
4 Supra note 1. 
5 Issued by the Cooperative Development Authority. Lifted from http://cda.gov.ph/images/statistics/Selected-Stats-2018.pdf.  Last accessed 
on 30 August 2019; 11:00AM 
6 Includes cooperatives under agrarian reform, agriculture, dairy, and fishermen.  
7 Act 2508, an “Act Regulating the Creation and Operation of Rural Agricultural Cooperatives Association, and for Other Purposes”, signed 
into law on February 5, 1915 
8 Lifted from the official website of the CDA. http://www.cda.gov.ph/transparency/overview/historical-background. Last accessed on 30 
August 2019, 1:14PM. 
9 R.A. No. 6938; This was amended by R.A. No. 9520 in February 2009. 


d) assess the economic situations of agricultural cooperatives to meet market
demands and provide market information to agricultural cooperatives; and
e) undertake national and international cooperation on agricultural cooperatives.
3. Simplifying the registration process for agricultural cooperatives and including
LGUs in registration, training, and development to ensure that:
a) unnecessary entry barriers [in the registration process] are removed;
b) agricultural cooperatives’ needs are addressed at the LGU level; and
c) grassroots’ concerns are heard and immediately resolved.
4. Granting additional benefits to agricultural cooperatives to facilitate market entry.
To implement the foregoing reforms, it is necessary to amend R.A. No. 1136410 to pave
the way for the creation of the Policy Board and the ACB, and to institutionalize the reforms 
contained in this Act. Specifically, under Sec. 20 of R.A. No. 11364, the CDA was mandated 
to prioritize the promotion and development of cooperatives in the agriculture and fishery 
sectors to ensure food security and reduce rural poverty. This bill enhances the capability of 
the CDA to implement this mandate. 
Finally, to make the appointment of agricultural cooperative officers in every LGU 
mandatory, R.A. No. 7160 also needs to be amended. 
Immediate passage of this Act is earnestly sought. 
GERALDINE B. ROMAN 
10 Cooperative Development Authority Charter of 2019. 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
Introduced by Representative GERALDINE B. ROMAN 
AN ACT INSTITUTING AGRICULTURAL COOPERATIVISM IN THE 
PHILIPPINES, AMENDING FOR THE PURPOSE CERTAIN SECTIONS OF R.A. 
NO. 11364, R.A. NO. 9520, AND R.A. NO. 7160, AND APPROPRIATING FUNDS 
THEREFOR” 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER I – GENERAL CONCEPTS AND PRINCIPLES 
SECTION 1. Short Title. – This Act shall be known as the “Genuine Agricultural 
Cooperativism Reform Act of 2019.” 
Sec. 2. Declaration of Policy. – It is the declared policy of the State to foster the creation and 
growth of agricultural cooperatives as a practical vehicle for promoting self-reliance towards 
the attainment of economic development and social justice among the agricultural industry. 
The State shall encourage the organization of agricultural cooperatives and shall create an 
atmosphere that is conducive to their growth and development.   
Towards this end, the State shall promote participation of every citizen whose primary 
occupations fall within the framework of agricultural production, agro-industry, agribusiness 
or services related to agricultural production systems in establishing and developing 
agricultural cooperatives to augment economic, social, and cultural status of members as well 
as to contribute to the national economic development. 
Sec. 3. Definition of Terms. The following terms shall mean: 
a) ACB – refers to the Agricultural Cooperative Board created under Sec. 6 of this Act.
It shall be headed by the Director for Agriculture, Agrarian, Aquaculture, Farmers,
Dairy and Fisherfolk defined in Paragraph (e), Section 5 of Republic Act No. 11364.
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b) Agricultural Cooperative – refers to an agricultural-based economic enterprise which 
is voluntarily established by persons with their joint investment, joint ownership and 
joint management in order to improve agricultural production capacity, agro-industry, 
agri-business, or services related to agricultural production.  
 
It shall encompass the following types cooperatives defined under R.A. No. 9520 and 
R.A. No. 11364: Agrarian Reform, Agriculture, Dairy, Fishermen, and Aquaculture. 
It also includes Multipurpose Cooperatives defined under R.A. No. 9520 whose 
primary business activity is at least 50% related to agricultural production, agro-
industry, agri-business, or services related to agricultural production. 
 
c) Agricultural Cooperative Officer – refers to the Provincial Cooperative Officer, the 
City Cooperative Officer, or the Municipal Cooperative Officer under Section 7 of 
this Act. 
 
d) CDA – refers to the Cooperative Development Authority created under R.A. No. 
11364. 
 
e) IRR – refers to any or all implementing rules and regulations and/or guidelines issued 
in accordance with this Act. 
 
f) Policy Board – refers to the Policy Board for Agricultural Cooperatives under Section 
4 of this Act.  
 
Sec. 4. Policy Board for Agricultural Cooperatives. – A Policy Board for Agricultural 
Cooperatives shall be established and chaired by the Secretary of Agriculture, co-chaired by 
the Secretary of Trade and Industry, or their nominees, and comprised of a representative from 
the Department of Interior and Local Government, Department of Finance, the cooperative 
sector, and civil society. 
 
Sec. 5. Powers and Duties of the Policy Board. – The Policy Board as a think-tank for 
Agricultural Cooperatives shall have the following powers and duties: 
 
a) prepare and evaluate policies, strategic action plans, and work plans concerning the 
development of Agricultural Cooperatives in line with the socio-economic conditions 
of the Philippines; 
 
b) set directions to enhance the capacity of Agricultural Cooperatives and to enhance the 
cooperation between and among Agricultural Cooperatives, private sector, and 
development partners; 
 
c) coordinate with the CDA and other concerned government agencies, private sector, and 
financial institutions in order to support for the operation of Agricultural Cooperatives;  
 
e) issue resolutions or circulars to concerned agencies or local government units (LGU) 
to come out with programs and strategic action plans concerning the development of 
Agricultural Cooperatives; 
 
f) address issues and challenges hindering the implementation of the national policy, and 
strategic action plans for Agricultural Cooperatives’ development;  


 
g) perform other duties to support the policies for the development of Agricultural 
Cooperatives as provided for under this Act. 
 
Sec. 6. The Agricultural Cooperative Board (ACB) – The ACB is hereby created to promote 
and support the establishment, operation, and development of Agricultural Cooperatives, and 
shall: 
 
a) act as the Secretariat of the Policy Board;  
 
b) promote and support the functioning, operation, and development of Agricultural 
Cooperatives; 
 
c) study and design policies, legal framework, strategic plans, and training programs to 
promote, strengthen, and develop Agricultural Cooperatives; 
 
d) provide training services to Agricultural Cooperatives in coordination with the LGUs; 
 
e) carry out outreach programs to promote awareness and to provide trainings aimed at 
building the capacity of Agricultural Cooperatives; 
 
f) facilitate the linkages between Agricultural Cooperatives with private sector and 
concerned institutions, both domestic and foreign; 
 
g) study and assess the economic situations of Agricultural Cooperatives to meet market 
demands and provide market information to agricultural cooperatives;  
 
h) undertake national and international cooperation on Agricultural Cooperatives; 
 
i) take part in resolving all disputes of Agricultural Cooperatives; and  
 
j) prepare reports on the progress of development of Agricultural Cooperatives and submit 
them to Congress; and 
 
k) perform other duties within the framework of agricultural cooperative development in 
line with this Act. 
 
The organization of the ACB shall be defined in the IRR. 
 
Sec. 7. Responsibilities of Local Government Units. – The Local Government Units (LGU) 
shall:  
 
a) legislate necessary ordinances for the promotion and development of Agricultural 
Cooperatives; 
 
b) disseminate information to people and facilitate the establishment, development, and 
management and operations of Agricultural Cooperatives in their respective locality; 
 
c) take part in solving disagreements arising within and among Agricultural Cooperatives;  
 


d) give free and regular seminars, trainings and/or conferences necessary for the 
organization, registration, management, and operations of agricultural cooperatives; 
and 
 
e) monitor and evaluate the implementation of this Act. 
 
The appointment of a local agricultural cooperative officer is mandatory for the provincial, city 
and municipal governments who shall have the power and authority to accept and process 
applications for registration of agricultural cooperatives within their respective jurisdictions. 
 
For exemplary reasons, applications from other LGUs may be accepted by any local 
agricultural cooperative officer, as defined in the IRR. 
 
Sec. 8. Preferential Treatments and Privileges of Agricultural Cooperatives. – Agricultural 
Cooperatives shall be encouraged by and shall enjoy preferential treatments and privileges 
from the national government and the LGUs, as defined in the IRR and local ordinances.  
 
Sec. 9. Application of Chapter V of R.A. No. 9520. – The provisions of Chapter V of R.A. No. 
9520 shall be applicable to Agricultural Cooperatives. Inconsistent principles shall be resolved 
in favor of the principles and provisions of this Act.  
 
CHAPTER II – ORGANIZATION AND REGISTRATION 
 
Sec. 10. Organization of Agricultural Cooperatives. — The organization and registration of 
Agricultural Cooperatives shall adhere to the following: 
 
a) A group of fifteen (15) or more natural persons who are Filipino citizens, of legal age, 
and whose primary activity or business falls within agricultural production system, 
agro-industry, agri-business or services related to agricultural production sector and are 
actually residing or working in the intended area of operation, may establish an 
Agricultural Cooperative. 
 
b) In addition to the existing organization and registration procedures of the CDA, an 
Agricultural Cooperative may also process their registration through the local 
agricultural cooperative officer. Denied applications shall be automatically reviewed 
by the ACB. All approved registrations by the local agricultural cooperative officer and 
those approved in review by the ACB shall be forwarded to the CDA for the issuance 
of Certificate of Registration. Non-issuance of the Certificate of Registration shall not 
affect the validity of any registration. 
 
c) All forms and necessary documentary requirements shall be made available to any 
applicant free of charge. 
 
d)  The ACB shall issue the necessary guidelines for the simplified organization and 
registration process for Agricultural Cooperatives. The uniform registration 
proceedings shall not extend beyond a period of 30 calendar days. Reviews by the ACB 
shall be resolved within the same period. 
 


f) For purposes of this Act, the local agricultural cooperative officer, in addition to the 
mayor, vice-mayor, and all members of the Sanggunian, shall be granted authority to 
administer oath, and such act shall be given free of charge. 
 
g) An application for registration shall only be denied on the ground that the applicant is 
not an Agricultural Cooperative. 
 
Sec. 11. Application of Chapter II, III, & IV of R.A. No. 9520. – The provisions of Chapters 
II, III, & IV of R.A. No. 9520 shall apply to Agricultural Cooperatives in so far as not 
inconsistent with the principles and provisions of this Act and its IRR.   
 
Sec. 12. Fees and Charges– Notwithstanding the generality of Sec. 15, no fees shall be 
assessed or charged to any Agricultural Cooperative by any government entity, national or 
local, at any stage of its organization and registration process. 
 
Sec. 13. Implementing Rules and Regulations – Within 180 days from the approval of this 
Act, the ACB, with the approval of the Policy Board, and in coordination with the 
Administrator of the CDA, shall issue the necessary IRR to implement this Chapter.  
 
CHAPTER III – PREFERENTIAL BENEFITS AND PRIVILEGES 
 
Sec. 14. Responsibilities, Benefits and Privileges of Agricultural Cooperatives. — An 
Agricultural Cooperative shall have the following responsibilities and shall enjoy the 
following unrestricted benefits and privileges: 
 
a) Responsibilities, Taxes, Duties, and Liens: 
 
i. 
All responsibilities of cooperatives defined under Chapter V of R.A. No. 9520 
shall apply to Agricultural Cooperatives insofar as these responsibilities are 
consistent with the provisions of this Act; 
 
ii. 
All benefits and tax treatments of cooperatives defined under Chapter V of 
R.A. No. 9520 shall apply to Agricultural Cooperatives, even those dealing 
with non-members, insofar as these benefits and tax treatments are consistent 
with the provisions of this Act.   
 
iii. 
Agricultural Cooperatives shall be exempt from customs duties, advance sales 
or compensating taxes on their importation of machineries, equipment and 
spare parts used by them. 
 
iv. 
All sales, services, or transactions of Agricultural Cooperatives shall not be 
subject to any taxes and fees imposed under the internal revenue laws and other 
tax laws, including income taxes, VAT, percentage taxes sales, and local sales 
taxes.  
 
v. 
All real properties owned, and those directly used for the operations, 
management, and maintenance of Agricultural Cooperatives shall be exempt 
from the payment of real property taxes imposed under existing laws. 
 


vi. 
On the tenth year after the approval of this Act, the ACB may, in coordination 
with the relevant government institutions, promulgate guidelines defining the 
thresholds of accumulated reserves and undivided net savings of Agricultural 
Cooperatives for the purpose of imposing reasonable limits on transactions 
with non-members and the general public.  
 
b) Trainings and Conferences: 
 
i. 
All trainings and/or conferences necessary for the organization, registration, 
management, and operations of an Agricultural Cooperative shall be given free 
of charge, including costs of venue, training materials, speakers and resource 
persons. The local agricultural cooperative officers shall be primarily 
responsible for these trainings and conferences within their respective 
localities.  
 
c) Loans and Grants: 
 
i. 
All loans applied for by Agricultural Cooperatives on any government owned 
or controlled banks or financial institutions shall enjoy preferential status and 
handling as to requirements, rates, securities, and collaterals.  
 
ii. 
The Policy Board, through the ACB, shall coordinate with the Banko Sentral 
ng Pilipinas to lower the thresholds for all loans applied for and granted to 
Agricultural Cooperatives. 
 
iii. 
All loans and grants granted to Agricultural Cooperatives shall be exempt from 
the payment of all taxes and fees by any government unit or institution, 
including the Bureau of Internal Revenue (BIR). 
 
Sec. 15. Joint Implementing Rules and Regulations– The Policy Board, Banko Sentral ng 
Pilipinas, and BIR shall jointly, within 180 days from the approval of this Act, issue the 
necessary guidelines for the implementation of this Chapter. 
 
CHAPTER IV – APPLICATION OF OTHER PROVISIONS OF R.A. No. 9250 AND 
R.A. No. 11364 
 
Sec. 16. Other Provisions of R.A. No. 9250 – In so far as not inconsistent with this Act, all 
other provisions of R.A. No. 9250 shall continue to apply to Agricultural Cooperatives.  
 
The CDA shall liberally exercise its powers to implement the provisions of R.A. No. 
9250 in favor of Agricultural Cooperatives and the principles enunciated in this Act. 
 
Within 180 days from the effectivity of this Act, the CDA, in coordination with the 
Policy Board, is shall issue a more liberal and simplified implementing rules and regulations 
for all other provisions of R.A. No. 9250 and R.A. No. 11364 applicable to Agricultural 
Cooperatives in line with the principles enunciated with this Act. 
 
 
 
 


CHAPTER V – FINAL PROVISIONS 
 
Sec. 17. Implementing Rules and Regulations. – The Policy Board, in consultation with the 
CDA, shall issue rules and regulations to implement those provisions of this Act which 
expressly call for the issuance thereof. This paragraph shall not apply to those cases wherein 
a specific provision of this Act expressly designates particular government agencies which 
shall issue the regulations called for by any provision of this Act. 
 
Sec. 18. Penal Provisions – In addition to the penal provisions of R.A. No. 9250 and the 
applicable penal provisions of R.A. No. 11364, any local agricultural cooperative officer, 
officer of the ACB, or officer of the CDA, who shall refuse to process or delay the processing 
of registration of an Agricultural Cooperative shall be punished by a fine of not less than five 
hundred thousand pesos (P500,000.00) but not more than five million pesos (P5,000,000.00) 
and suffer imprisonment of not less than four (4) years but not more than six (6) years: 
Provided, That the conviction or acquittal obtained under this section shall not be a bar to the 
filing of any civil or administrative suit. 
 
Furthermore, any member of an Agricultural Cooperative, or any person who shall 
violate any provision of this Act shall be punished by a fine of not less than one million pesos 
(P1,000,000.00) but not more than ten million pesos (P10,000,000.00) and suffer 
imprisonment of not less than six (6) years but not more than twelve (12) years: Provided, 
That the conviction or acquittal obtained under this section shall not be a bar to the filing of 
any civil or administrative suit. 
 
Sec. 19. Interpretation and Construction. – In case of doubt as to the meaning of any 
provision of this Act or the regulations issued in pursuance thereof, the same shall be 
resolved liberally in favor of Agricultural Cooperatives and their members. 
 
Sec. 20 Appropriations. — The funds needed to carry out the provisions of this Act shall be 
charged to the appropriations of the CDA under the current General Appropriations Act: 
Provided, That in the initial year of operations of the Policy Board and the ACB, an additional 
amount of not exceeding One Hundred Million Pesos (P100,000,000.00) may be requested and 
drawn by the CDA from the Department of Agriculture, and the Department of Trade and 
Industry, and from any other available source. Thereafter, such sums as may be necessary for 
its continued implementation shall be included in the annual General Appropriations Act. 
 
Sec. 21. The Joint Congressional Oversight Committee on Cooperative (JCOCC). – The Joint 
Congressional Oversight Committee created under R.A. 9520 shall review and monitor the 
proper implementation of this Act. 
 
Sec. 22.  Repealing Clause. – Except as expressly provided by this Act, all other laws or 
regulations, or parts thereof, inconsistent with any provision of this Act shall be deemed 
repealed: Provided, That the relevant provisions of R.A. No. 9520, R.A. No. 11364, and R.A. 
No. 7160 as applicable to Agricultural Cooperatives are hereby repealed, amended or modified 
accordingly. 
 
 
 
 
 


Sec. 23. Transitory Provisions. -  
 
a) All Agricultural Cooperatives registered and confirmed under R.A. No. 9520 are hereby 
deemed registered under this Act, and a new certificate of registration shall be issued 
by the CDA: Provided, That such cooperative shall submit to its local agricultural 
cooperative office a copy of their certificate of registration or certificate of 
confirmation, the articles of cooperation, their bylaws, and their latest audited financial 
statement within one (1) year from the effectivity of this code, otherwise the shall be 
deemed cancelled motu proprio. 
 
b) Following the issuance of the new certificate of registration, the registered agricultural 
cooperatives shall secure their certificate of tax exemption from the nearest office of 
the BIR: Provided, That such exemptions shall be valid of ten (10) years from the date 
of issue, unless extended by the Policy Board: Provided, further, That all unpaid 
assessments of previously registered Agricultural Cooperative under R.A. No. 9520 
shall be the subject of compromise settlement on terms favorable to such Agricultural 
Cooperative; and: Provided, finally, That the BIR and the ACB shall be jointly issue 
the necessary regulations on this exemption and compromise within ninety (90) days 
from the effectivity from this Code. 
 
Sec. 24. Separability Clause. - Should any part of this code be declared unconstitutional, the 
validity of remaining provision hereof shall remain in full and effect. 
 
Sec. 25. Effectivity Clause. - This code shall take effect fifteen (15) days from its publication 
in a newspaper of general circulation. 
 
 
Approved,