THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES } 
Second Regular Session 
SENATE 
INTRODUCED BY HON. MANNY VILLAR 
EXPLANATORY NOTE 
Farm productivity a. key element in attaining food sufficiency in a country whose 
population is growing at an alarming rate like the Philippines. Increasing agricultural 
productivity, however, has always been an elusive goal, as government continues to 
pour in limited funds in order to stimulate productivity in the agricultural sector. 
As government resources become scare and global competition intensifies in the 
agricultural world market, demand for more strategic provision of farm support 
increases. 
Among, the farm supports provided by the government, irrigation is the most 
crucial and is recognized as a catalyst of agricultural productivity. However, only 1.37 
million lands have adequate irrigation facilities. 
This bill provides for a strategic provision of irrigation farm support with the view 
of increasing farm productivity. It grants incentives for the promotion of cost-effective 
irrigation technologies. This will maximize the potential of our agricultural sector towards 
more efficient farming technologies that will yield a more diversified produce thereby 
contributing to the food sufficiency goal of the country. 
In view of the foregoing reasons, the approval of this bill is earnestly sought. 
MANNYVIL AR ? 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES } 
Second Regular Session 
SENATE 
INTRODUCED BY HON. MANNY VILLAR 
AN ACT TO ENHANCE FARM PRODUCTIVITY BY PROVIDING STRATEGIC FARM 
IRRIGATION SUPPORTS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title- This Act shall be known as the "Farm Productivity Act of 
2005." 
SECTION 2. Declaration of State Policy- It is hereby declared the policy of the 
State to enhance farm productivity in order to boost food sufficiency in the country. In 
pursuit of such policy, the State shall provide strategic farm irrigation supports and 
incentives to increase the productivity of the country's agricultural sector especially in 
the countryside. 
SECTION 3. Definition of Terms- For purposes of this Act, the following terms 
are defined as follows: 
a) Minor Irrigation Systems are irrigation systems that utilize small and 
medium scale irrigation facilities such as Shallow Tube Wells (STWs), Low- 
Lift Pumps (LLPs) and other inundation systems. 
b) Shallow Tube Well (STW) refers to a tube or shaft vertically set into the . 
ground for the purpose of bringing ground water to the soil surface from a 
depth of less than 20 meters by suction lifting. 
c) Low-Lift Pump (LLP) refers to the pump in which the pressure is 
developed by the lifting action of the suction valves on the water source. 
d) Farm Enterprises refers to any business activity or enterprise engaged in 
agriculture whether single proprietorship, cooperative, partnership or 
corporation duly certified by the Department of Agriculture. 
SECTION 4. Technical Assistance - The National Irrigation Administration, 
together with agricultural state colleges and universities shall provide farm enterprise a 
comprehensive technical assistance program in the development of minor irrigation 
training, research, information support services and the improvement of irrigation 
facilities. 
SECTION 5. Irrigation Development Loans - The Department of Agriculture, 
shall establish an irrigation credit facility under the Agro-industry Modernization Credit 
and Financing Program that will provide access to concessional loans and credit 
guarantees for the acquisition of water pump sets, tube wells, sprinkler systems and 


other equipment for the development of minor irrigation systems. Provided, that interest 
rates for these loalls shall not exceed nine percent (9%) per annum. 
SECTION 6. Fiscal Incentives - All purchases and rentals of equipment for 
minor irrigation, systems, such as Shallow Tube Wells (STWs), Low Lift Pumps (LLPs), 
and other inundation systems used by farm enterprises that are duly certified by the 
Department of Agriculture in consultation with the Department of Finance and Board of 
Investment shall for a period of ten (IO) years, be exempted for the payment of all forms 
of taxes, tariffs and duties. 
SECTION 7. Appropriations. - There shall be appropriated an initial 
appropriation of P 1 .O Billion Pesos during the first year of implementation of this Act to 
be administered by the Department of Agriculture. 
Thereafter, all such amounts as may be necessary for the sustainable financing, 
operation, maintenance! and improvement of minor irrigation systems shall be 
automatically appropriated in the General Appropriations Act as approved by Congress. 
SECTION 8. Implementing Rules and Regulations.- The Secretary of 
Agriculture, in coordination with the National Irrigation Administration and the 
Department of Finance, shall within sixty (60) days from effectivity this Act. 
of Agriculture and Food of the Senate and the House of Representatives. 
SECTION 9. Separability Clause.- If any provisions of this Act shall be deemed 
unconstitutional or invalid, the other provisions not affected thereby shall remain in force 
and effect. 
Copies of such rules and regulations shall be both submitted to both Committees 
SECTION I O .  Repealing Clause. - All Acts, Presidential' Decrees, Executive 
Orders and Administrative Orders, Rules and Regulations, and other. 
SECTION 11. Effectivity. - This Act shall take effect Fifteen (15) days after its 
complete publication in at least two (2) newspapers of general circulation. 
Approved,