Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

House Bill No. 5103

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
PRESCRIBING THE STRENGTHENING OF THE NATIONAL EXTENSION
SYSTEM TO ACCELERATE AGRICULTURE AND _ FISHERIES
DEVELOPMENT, APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES’

EXPLANATORY NOTE

Through the years, the state of Philippine agriculture has been in a
downward spiral. The country has continually faced the problem of high food
cost and it has the highest food prices among ASEAN countries. Our recent
experience where there was shortage of rice only shows that we still need to
strengthen our agricultural base. The high cost of food, it being wage goods, has
severely affected the competitiveness of our country’s industry specially those in
engaged in export. Making matters worse is the problem of high rural poverty.

Agriculture and Fisheries extension is central to growth and development
of both the agriculture and fisheries sector. If we are able to manage well
agriculture knowledge through extension services will be crucial to agriculture
growth and development. This enables, empowers and gives producers the
competitive edge. Extension, along with the complementing Research and
Development (R&D), ensures the highest return of investment (ROI) among
policy instruments which makes it worth investing in.

" this is a counterpart measue filed bythe Hon, Edgardo J. Angara during the First Regular Session ofthe present 15" Congress.


Agriculture growth emanates from knowledge-intensive practices such as
crop intensification. However, knowledge-intensive agriculture (KIA) is dependent
on a dynamic, responsive agriculture and fisheries extension with strong linkage
to knowledge generation. This is where our problem lies since Philippine
Agriculture and Fisheries Extension Services (AFES) face serious problems
which affect its efficiency and effectiveness. Being highly fragmented, it
therefore lacks coherent direction. Also, our present AFES is composed of
demoralized and aging personnel who have not fully recovered from the effects
of decentralization which results to weak research-extension linkage,
underinvestment, and highly politicized structure among others.

The proposed Agriculture and Fisheries Extension bill will address the
current problems and more. The bill seeks to:

1. Strengthen the country’s extension system by decentralizing it to the
appropriate level of political unit that provides a viable economic unit for
agriculture development ie., the province;

2. Making the national government pay for the salaries and wages of
extension personnel under the administrative direction of the provincial
government;

3. Professionalizing and standardizing the salaries and wages of the Local
Government Unit (LGU) extension personnel to that of equivalent
positions in the national government;

4. Creating a national agency, the Philippine Agriculture & Fisheries
Extension Agency (PAFEA) to orchestrate, provide national directions, set
standards of performance, and provide institutionalized financial and
technical support to the LGUs.

In view of the paramount importance of this proposal, its immediate
approval is earnestly sought

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semweb lil. ARROYO GLORIA Macy PAGAL ARROYO

Second District, Camarines Sur Second District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

5103

House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
PRESCRIBING THE STRENGTHENING OF THE NATIONAL EXTENSION
SYSTEM TO ACCELERATE AGRICULTURE AND _ FISHERIES
DEVELOPMENT, APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

ARTICLE I. GENERAL PROVISIONS

SECTION 1. Short Title. — This Act shall be known as the "Agriculture and
Fisheries Extension Act of 2011."

SECTION 2. Declaration of Policy. — The goals of the national economy
are a more equitable distribution of opportunities, income and wealth; a sustained
increase in the amount of goods and services produced by the nation for the
benefit of the people; and an expanding productivity as the key to raising the
quality of life for all, especially the underprivileged.

The State shall promote industrialization and full employment based on
sound agricultural development and agrarian reform, through industries that
make full and efficient use of human and natural resources, and which are
competitive in both domestic and foreign markets. In pursuit of these goals, all


sectors of the economy and all regions of the country shall be given optimum
opportunity to develop.

Thus, it is hereby declared the policy of the State to enable those who
belong to the agriculture and fisheries sector to participate and share in the fruits
of development and growth in a manner that utilizes the nation's resources in the
most efficient and sustainable way possible by establishing a more equitable
access to assets, income, basic and support services and infrastructure.

The State shall give priority to promote science, technology and human
resource development as essentials for nationa! development and progress.

The State shall utilize research results through information, extension and
communication services. It shall support the development of a national extension
system that will help accelerate the transformation of agriculture and fisheries
sectors of the Country from a resource-based industry to a knowledge and
technology-based and market-oriented industry.

The State shall adopt the market approach in assisting the agriculture and
fisheries sector while recognizing the contribution of these sectors to food
security, environmental protection, and balanced urban and rural development,
without neglecting the welfare of the consumers, especially the lower income
groups. The State shall promote market-oriented policies in agricultural
production to encourage farmers to shift to more profitable crops.

The State shall empower the agriculture and fisheries sector to develop
and sustain themselves to meet present and future needs of the Country.
Toward this end, the State shall ensure the establishment and development of
the agriculture and fisheries extension system that increases and sustains its
contributions to the achievement of the goals of agriculture modernization as
mandated by Republic Act 8425: 2) Poverty Alleviation and Social Equity; b)
Food Security; c) Rational Use of Resources and Sustainable Development; d)
Global Competitiveness; and e) People Empowerment.

SECTION 3. Definition of Terms. - As used in this Act, the term:

|. "Agriculturist" refers to a person who is a graduate of a bachelor's
degree in agriculture or any related course registered and licensed with
the Professional Requiation Commission or Civil Service Commission;
who performs communication, curriculum development, econometrics,
statistical work, training anc extension works in agriculture production,
trade, and processing including crop and animal protection, food safety,
agricultural and natural resource economics, and marketing;

2. “Agricultural Engineer’ refers to a person registered with the
Professional Regulation Ccmmission or Civil Service Commission


performing training and extension work in agricultural and fisheries
mechanization, irrigation, drainage, soil and water conservation,
agricultural buildings and structures, agricultural processing and post
harvest facilities;

3. “Catalytic Financing” - the provision of financial support to achieve
excellence, equity and increased investment by the local governments in
the implementation of agriculture and fisheries extension services towards
the achievement of national goals;

4. ‘Civil Society” - refers to the group of organizations whose uncoerced
collective action revolves around shared interests, purposes and values.
Civil societies are organizations composed of community groups, women’s
organizations, faith-based organizations, professional associations, trade
unions, self-help groups, social movements, business associations,
coalitions and advocacy groups;

5. “Consumers” - are those that acquire goods or services for direct use or
ownership rather than for resale or use in production and manufacturing;

6. ‘Empowerment’ - is the expansion of assets and capabilities of people
to participate in, negotiate with, influence, control and hold accountable
institutions that affect their lives; it involves providing authority,
responsibility, and information to people directly engaged on agriculture
and fishery production, primarily at the level of the farmers, fisherfolk and
those engaged in food and non-food production and processing, in order
to give them enhanced economics rights;

7. "Fisheries" - refers to all systems or networks of interrelated activities
which include the production, growing, harvesting, processing, marketing,
developing, conserving and managing of all aquatic and fisheries areas;

8. "Fisheries Technologist” refers to a person who is a graduate of a four
year course in Fisheries and registered and licensed with the Professional
Regulation Commission or Civil Service Commission performing training
and extension on fisheries, marine resources and aquaculture;

9. "Food Security" - refers to the policy objective, plan and strategy of
meeting the food requirements of the present and future generations, of
Filipinos in substantial quantity, ensuring the availability and affordability of
safe and nutritious food to all, either through local production or
importation, or both, based on the country's existing and potential
resource endowment and related production advantages, and consistent
with the overall national development objectives and policies;


10. “Formula grants” - these are national government financial transfers to
the local governments to support the regular expenditures in the provision
of Agriculture and Fisheries Extension Services (AFES) based on a
formula that takes into consideration, among others, the level of economic
development of a municipality or a province;

11. “Gross Value Added in Agriculture" - refers to the total value, excluding
the value of non-agricultural or fisheries intermediate inputs, of goods and
services contributed by the agricultural and fisheries sectors:

12, "Knowledge Management’ - is a systematic approach which invents,
understands, shares, creates and utilizes knowledge in order to create
values such as customer's value, employee's value, stockholder's value,
business partner's value and social value to achieve the vision and goal of
the organization;

13, "Partnership" - a relationship between and among agencies that is
characterized by mutual cooperation and responsibility towards the
achievement of shared goals;

14, "Private sector" - the part of a nation's economy that is not owned and
managed by the government;

15, "Producer" - one that produces, especially a person or organization,
that produces goods or services for sale;

16. "RBOs" - are rural based organizations or people's organizations
composed of various sectors of the rural community such as farmers,
fisherfolk, growers, seed producers, women, and youth;

17. "Targeted financial transfer" - is a financial support provided by the
national government to the LGUs in support of national goals or programs;

18. "Value chain" - is a process from seed to shelf or from the producers
to the consumers, showing activities and interventions offfor a chosen
commodity/ties based on understanding the needs for such interventions;

19. "Veterinarian" refers to a person registered with the Professional
Regulation Commission performing professional services related to the
practice of veterinary medicine including training and extension on disease
prevention control and animai health

SECTION 4. Statement of Goals. - Agricultural extension is a policy
instrument for empowering individuals and organizations; public agriculture
extension shall contribute towards the achievement of the national goals of
agriculture development.


SECTION 5. Statement of Objectives. — Agriculture and fisheries
extension shall contribute to the following objectives

a) To enhance the economic rights of Producers, especially the poor, to
use the most appropriate technologies they feel will give them the best profit and
to choose the most affordable loans in producing the quality and quantity of
products and to sell their products freely; Traders, to move goods in the
expectation of profits unconstrained by serious lack of knowledge and
information; and Consumers, to buy safe and nutritious foods at the lowest prices
possible

b) To manage knowledge in strengthening the individual and
organizational capabilities of producers, traders and consumers; and

c) To help create an enabling environment that strengthens the linkage
between knowledge generation and knowledge use and encourages increased
investment in agriculture extension by the private sector, civil society, and Local
Governments,

SECTION 6. Clients. - The clients of Philippine agricultural and fisheries
extension system are the producers (farmers, fisherfolk, agricultural processors),
traders, and consumers along the value chain. Public extension shall focus on
the delivery of public goods. The priority clients shall be the economically and
socially disadvantaged groups in agriculture and fisheries. Local Government
Units shall put primary attention to these groups in the provision of extension
services through formula grants and targeted and catalytic financing of National
Government Agencies.

ARTICLE II. Structure and Organization

SECTION 7. Creation of the Philippine Agriculture and Fisheries
Extension Agency (PAFEA). — The Agricultural Training Institute is hereby
strengthened and transformed into the Philippine Agriculture and Fisheries
Extension Agency (PAFEA). It shall serve as the national apex organization for a
unified and efficient agriculture and fisheries extension system of the country. It
shall ensure that public extension services meet the national standards of
performance and effectively contribute towards the achievement of the national
goals of agriculture and fisheries modernization.

The Philippine Agricultural and Fisheries Extension Agency (PAFEA),
shall coordinate all government extension programs in agriculture and fisheries.

SECTION 8. Powers and Functions. -


a) Provide direction in the development of national extension policies in
agriculture and fisheries;

b) Orchestrate the development of extension strategic plan including its
financing in coordination with the Department of Budget and Management and
other stakeholders;

©) Develop and implement national policies and programs aimed at the
continuous improvement of the quality of extension methods, products, and
services towards a more efficient and client-responsive national agriculture and
fisheries knowledge management system;

d) Develop a system towards the management of the country's extension
resources for agriculture and fisheries to ensure a sustainable, participatory and
efficient system of funding for information, education, and communication
materials (IEC) and to achieve optimal efficiency along the value chain;

e) Provide leadership in the development and implementation of the
National Agriculture & Fisheries Knowledge Network (NAFKN) in agriculture and
fisheries of the Department through a system of partnerships that may include,
but not be limited to, the (Local Government Units) LGUs, the regional
development council (RDC), the Regional Agriculture and Fisheries Council
(RAFCs), the academe especially the SUCs of agriculture and fisheries, the Civil
Society Organizations (CSOs), producers, rural based organizations (RBOs) and
the private sector;

f) Provide national leadership in consultation with agriculture and fisheries
councils (AFCs), in developing extension partnerships towards increased
investment and private sector participation;

g) Team up with state universities and colleges (SUCs) of agriculture and
fisheries as key partners in the implementation of the national programs specially
in the areas of extension innovations, national training, and monitoring and
evaluation of extension institutions and programs;

h) Provide leadership in developing and implementing a national system of
strengthening institutional extension capacities at all levels of implementation;
and

i) In coordination with the Department of Budget and Management (DBM);
the Local Government Units, The Department of Local governments, and other
stakeholders, the PAFEA shall set up a review mechanism for all agriculture and
fisheries extension programs and budgets of national agencies to determine
cost-effectiveness of operations and potential impacts to national goals


SECTION 9. Structure of PAFEA. — It shall be headed by a Director
General (DG) with a rank of Assistant Secretary to be assisted by two Deputy
Director Generals (DDG) and they shall be appointed by the President upon
recommendation of the Secretary of Agriculture from a list submitted by an
independent Search Committee organized and based on the qualification
standards set by the Council for Extension Research Development in Agriculture
and Fisheries (CERDAF). They shall have a fixed tenure of six (6) years and
may be re-appointed for an additional term of four (4) years based on very
satisfactory performance.

SECTION 10. The Council for Extension Research Development in
Agriculture and Fisheries (CERDAF) ~ The Council for Extension Research
Development in Agriculture and Fisheries (CERDAF) is hereby strengthened. It
shall ensure that the agriculture and fisheries research, development and
extension policies and programs of the Department are consistent with national
policies and priorities.

a) Functions and duties of the Council for Extension Research
Development in Agriculture and Fisheries (CERDAF).

(1) Approve policies covering program priorities and resource allocation in
research and extension of all agencies of the Department;

(2) Enhance coordination and linkage of government institutions involved
in agriculture and fisheries research, development and extension;

(3) Strengthen the participation of various stakeholders, especially the civil
society, local government units, and private sector in the development of
National Research Development and Extension (NRDE) agenda and
programs;

(4) Strengthen the institutional efficiency of the NRDE system, including
the setting up of a monitoring and evaluation system on the effectiveness
and efficiency of its various components; and

(5) Set guidelines in the use of services and facilities, collection of fees
and in the utilization of income.

SECTION 11. Composition of the Council for Extension Research
Development in Agriculture and Fisheries (CERDAF). - The Undersecretary for
Policy and Planning of the DA shalll be the Chair of the Council. There shall be a
Vice-Chair to be elected from among the other members of the Board. The
Executive Director of the Philippine Agriculture and Fisheries Extension Agency
(PAFEA) and the Director of the Bureau of Agriculture Research (BAR) shall be
ex officio members and the Chair shall appoint the Executive Director of PAFEA
as Secretary of the Council. The CERDAF shall have the following as members:


(1) Designated Undersecretaries for Policy & Planning of the following
Departments:

i, Department of Science and Technology;
ii, Department of Environment and Natural Resources;
ili, Department of Agrarian Reform;
(2) Presidents of the following LGU organizations:
i, League of Provinces;
li. Union of Local Authorities of the Philippines (ULAP);

(3) Four (4) CSO representatives from the rural youth, rural women, and
farmer, and fisherfolk sectors as identified and selected by the Department
of Agriculture;

(4) One (1) private sector representative designated by the Management
Association of the Philippines (MAP);

(5) Representatives from scientific/professional organizations/societies;

(8) One representative each from the following national professional
organizations: i) agriculturists; ii) agricultural engineers; iii) fishery
technologists and iv) veterinarians.

SECTION 12. Offices under the PAFEA. — To carry out the functions of
the Agency, PAFEA shall have four technical offices as follows: (1) Policy
Development; (2) Extension Innovations & National Training; (3) Knowledge
Products & Services Development; and (4) Extension Governance &
Partnerships.

The PAFEA shall maintain a small regional office to: (1) liaise with the
Department Regional Field Units (RFUs) that should serve as the principal arm of
the Department to implement extension policies and programs in the regions; (2)
provide regional technical assistance in the implementation of PAFEA policies
and programs; and (3) monitor and evaluate extension offices and programs
being undertaken by government agencies. The PAFEA is authorized to utilize
existing Agricultural Training Institute (ATI) plantilla positions but in no case shall
it exceed 85% of the plantilla positions in 2008.



ARTICLE Il. Organization of the Local Government Extension Services

SECTION 13. Province as the LGU Unit of Operation for Agriculture &
Fisheries Extension. — To achieve efficiency and to provide more responsive
services, the administrative unii for the planning and implementation of the
extension services at the level of Local Government Units is the province through
a Provincial Agriculture and Fisheries Extension Services under the Office of the
Governor. The Provincial Agriculture and Extension Services shall be headed by
a technically-qualified career Provincial Agriculturist (PA). The PAS shall be
appointed by the Director General of PAFEA chosen from three qualified
nominees submitted by the Governor. Its staff shall be composed of technically
qualified career agriculturists, economists, statisticians, agricultural engineers,
fishery technologists and veterinarians appointed by the Provincial Governor.

SECTION 14. Extension Personnel in the Municipalities. — All municipal
and non-chartered agriculture and fisheries extension personnel are hereby
transferred to the province, and they shall be appointed by Governor and
become employees of the provincial government upon the effectivity of this Act
However, they will continue to serve municipalities and non-chartered cities as
detailed employees of the province based on a rationalized organizational
structure endorsed by the LGUs and approved by the PAFEA and the DBM. The
Municipal Agriculture and Extension Services shall be headed by a technically-
qualified career Municipal Agriculturist Officer (MAO) who shall be appointed by
the Director General of PAFEA chosen from three qualified nominees submitted
by the Governor.

SECTION 15. Salaries and Wages of Extension Personnel, - The salaries
and wages of the agriculture and fisheries technical extension personnel shall be
paid by the National Government through an annual grant-in-aid to be paid out of
the regular appropriation of the PAFEA of the Department of Agriculture;
Provided, however, that during the first year of the effectivity of this Act, the local
government concerned shall reallocate its savings from the personal services for
agricultural personnel to its agriculture and fisheries operations; Provided,
further, that every year thereafter, the concerned LGU shall appropriate the
equivalent funds as the minimum amount for its agricultural and fisheries
Operation or counterparts to national grants-in-aid in agriculture and fisheries,
without prejudice to the provision of additional funds that may be allocated by the
LGUs for this purpose. The salaries and wages of technical extension personnel
shall be standardized and equal to that of comparable positions of national
employees without prejudice to the provision of additional staff benefits by
concerned LGUs where finances warrant. The provision of grants in aid to pay
for the salaries and wages of the technical personnel of the LGU extension
services shall be subject to external review and evaluation every five years to
determine its impact to the quality of services and its cost-effectiveness. A copy
of the report shall be provided to Congress and serve as the basis for the
continuation or modification of the grants-in-aid.


SECTION 16. Professionalization of Extension Services. - The PAFEA, in
coordination with the Civil Service Commission and subject to the approval of the
CERDAF, shall develop qualification standards beyond the minimum set by the
Civil Service Commission for the various managerial, technical, and non
technical positions of the extension services of the country including that of all
local government units. The PAFEA shall also develop a career path of all
technical extension personnel that will allow them regardless of assignment or
location in government, to move vertically in the promotion system. Managerial
positions shall be open to all qualified personnel regardless of geographic or
agency assignment. Towards this end, the PAFEA shall issue guidelines for the
creation of a merit promotion boards for each extension agency that will include
representatives of the SUCs of agriculture and fisheries.

SECTION 17. Structure of the Provincial Extension Services. - The
provincial agriculture and fisheries extension services shall organize and
structure its services based on the agricultural and extension needs of the
province and on the standards set by the PAFEA. The technical positions of the
PAFEA, and the Provincial Extension Services shall be rationalized to provide
the required number of positions for agriculturists, communication and curriculum
specialists, economists, agricultural engineers, fishery technologists and
veterinarians.

SECTION 18. LGU Livestock Production Services. — |n recognition of the
need to provide an integrated extension approach to total farm development, the
LGU livestock production Services shall be part and parcel of the Provincial
Agricultural Office (PAO). In cases where these functions were transferred to the
Provincial Veterinary Services, they shall be returned and integrated to the rest of
the PAO services,

SECTION 19. Strategic Plan in Agriculture & Fisheries. - To provide
coherence of all government plans in agriculture and fisheries and to achieve
efficiency in the use of resources, all provincial governments are required to
develop a five-year strategic plan in agriculture and fisheries based on the
framework and principles provided by the Department of Agriculture (DA). The
Strategic Plan shall serve as the basis for the DA to provide short-term and long
term assistance. The yearly program of work and budget shall be derived from
the strategic plan.

ARTICLE IV. Funding for Extension Services

SECTION 20. initial Appropriation. — For the first year of implementation of
this Act, the amount of five billion pesos (PHP 5,000,000,000.00) shall be
appropriated out of the total budget of the Dept of Agriculture (DA) for personal

10


services, grants-in-aid to the LGUs, operation and capital outlay requirements of
the Philippine Agriculture and Fisheries Extension Agency (PAFEA).

The Department of Budget and Management (DBM) is hereby mandated
to include annually in the President's program of expenditures for submission to
Congress and release an amount not less than five billion pesos
(PHP5,000,000,000.00) or one percent of the gross value added in agriculture
and fisheries, whichever is higher, for the implementation of this Act.

The PAFEA is authorized to utilize part of its yearly appropriation to set up
or upgrade necessary facilities to improve the provision of national extension
services,

All assets, resources both human and financial of Agriculture Training
Institute (ATI), shall be transferred to the PAFEA.

All revenues generated out of the use of services, facilities and equipment
shall be utilized by the Agency to augment its maintenance and operating
expenditures subject to the approval of the Governing Board.

ARTICLE IV. Final Provisions

SECTION 21. Oversight Committee. - The Congressional Oversight
Committee for Agriculture and Fisheries Modernization shall oversee the
implementation of this Act for a period not exceeding five (5) years from its
effectivity.

SECTION 22. Implementing Rules and Regulations. — Within ninety (90)
days from the effectivity of this Act, the implementing rules and regulations shall
be formulated by the Department of Agriculture in coordination with the members
of the Congressional Oversight Committee on Agriculture and Fisheries
Modernization. The said rules and regulations shall be submitted by the
Secretary of the Department of Agriculture (DA) to the Committee of Agriculture
of both Houses of Congress

SECTION 23. Repealing Clause. — All laws, decrees, executive orders,
tules and regulations, issuances or parts thereof inconsistent with this Act are
hereby repealed or amended accordingly.

SECTION 24. Separability Clause. — If any provision of this Act is declared
invalid or unconstitutional, the other provisions not affected thereby shall remain
valid and subsisting.


SECTION 25. Effecfivity Clause. - This Act shall take effect thirty (30)
days from the date of its publication in the Official Gazette or in at least in two (2)
national newspapers of general circulation

Approved,