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

NINETEENTH CONGRESS
First Regular Session

HOUSE au No. 406

Introduced by Honorable Representatives
ARLENE D. BROSAS (Gabriela Women’s Party),
FRANCE L. CASTRO (ACT Teachers Partylist),

and RAOUL DANNIEL A. MANUEL (Kabataan Partylist)

AN ACT PROVIDING FOR A FIFTEEN THOUSAND PESOS (P15,000) PRODUCTION
‘SUBSIDY FOR FARMERS AND FISHERFOLKS AFFECTED BY INCREASING COST OF
FARM INPUTS, RISING FUEL PRICES, ECONOMIC DOWNTURN AND CALAMITIES
AMID THE COVID 19 PANDEMIC

EXPLANATORY NOTE

Philippine agriculture is in crisis, growing at an average of 2.1 percent from 2017 to 2019, its
slowest pace after 70 years of growing at 3.5 percent annually on average. In the same period,
the sector lost over 1 million jobs. In 2018, the country's agricultural trade deficit was the
largest in history, and in 2019 the Philippines began importing its staple food rice, after the
‘enactment of RA 11203 or the Rice Tariffication Act.

Despite the sector's steady decline and disaster vulnerability, the agriculture and agrarian
reform budget averaged just a measly 3.6 percent of the total national budget from 2017 to
2019. This was reduced further to 1.7 percent in 2020 and 1.6 percent in 2021

The situation of the domestic agriculture sector and the country's main food producers -
farmers and fisherfolk - worsened during the COVID-19 pandemic.

Likewise, since May 2020, fertilizer prices have constantly increased, burdening farmers
shouldering the entire cost of farming and food production. Rising fertilizer prices instantly
affect the production of rice, vegetables, crops, and the livelihood of farmers in general.

The average price of fertilizer increased by as much as 40.5 percent annually, depending on
the grade. According to farmers in Nueva Ecija interviewed by the Kilusang Magbubukid ng


Pilipinas (KMP), in August 2021, the retail prices of urea fertilizer further increased to P1,500
per bag, considered unreasonable and exorbitant by farmers. As of June 2022, the average
cost of urea fertilizer is almost P3,000 per bag.

Furthermore, according to AMIHAN, additional fertilizer costs will rim a farmer's income to just
198 from P302 a day, which could go even lower with the expected decline in palay prices
during the lean months of September and October.

According to the local fisherfolk group PAMALAKAYA, weekly oil price hikes are hitting the
municipal fishing production hard. In particular, unstoppable skyrocketing oil prices push
fisherfolk to reduce fishing activities. The regular six to eight hours of fishing in a day was cut
to four to six hours due to expensive oil prices. Fishing days are also reduced from the usual
four to five days to only three days of fishing trips per week. Ultimately, this means a further
diminution of already small income and additional days of starvation for poor fisherfolk

The high cost of fuel poses consequences on agriculture and fisheries production, rice
vegetable, and fish supply, market prices of goods, and overall food security

Due to significant losses in their income, farmers themselves are unable to buy their own food
Income from farming and selling their produce cannot keep up with the increasing cost of living
land the cost of farming and fishing. immediate government measures to cushion the impacts
of inflation on our local food producers are imperative.

Sectors are demanding production subsidies for farmers, fisherfolk, agricultural workers, and
other rural-based sectors to provide food on their tables and for food production to continue.

Even after the COVID-19 lockdown was lifted, peasant families suffered economic hardships
due to loss of livelihood and bankruptcy. Overall, the failed pandemic response and the
economic crisis further wreaked havoc on peasant and fisherfolk households’ incomes and
livelihood

Even the national government's meager fuel subsidies granted are not enough. It is imperative
that the government prioritize the provision of urgent production subsidies to farmers and
fisherfolk,


In view of the foregoing, the approval of this bill is earnestly sought.

| BROSAS
riela Women’s Party



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

NINETEENTH CONGRESS
First Regular Session

406

HOUSE BILL NO.

Introduced by Honorable Representatives
ARLENE D. BROSAS (Gabriela Women’s Party),

FRANCE L. CASTRO (ACT Teachers Partylist),

and RAOUL DANNIEL A. MANUEL (Kabataan Partylist)

AN ACT PROVIDING FOR A FIFTEEN THOUSAND PESOS (P15,000) PRODUCTION
SUBSIDY FOR FARMERS AND FISHERFOLKS AFFECTED BY INCREASING COST OF
FARM INPUTS, RISING FUEL PRICES, ECONOMIC DOWNTURN AND CALAMITIES
AMID THE COVID 19 PANDEMIC

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

SECTION 1. Short Title. This Act shall be known as the “P15K Production Subsidy for
Farmers and Fisherfolk Act of 2022.”

SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to free the
people from poverty through policies that provide adequate social services, a rising standard
of living, and an improved quality of fife for al

The State must ensure that Filipino farmers and fisherfolk are afforded with significant and
necessary support to aid them in their food production and livelinood. Towards this end, the
State shall provide an immediate, quick-release, and unconditional production subsidy to
farmers and fisherfolk.

SECTION 3. Definition of Terms.
a) Farmers — Farmers refer to those who eam their income by working on the land. As used

in this Act, it includes agricultural workers, fisherfolk, indigenous peoples, including rural
women, and workers in cattle and livestock farms, aquaculture, and pasture lands.

b) Fisherfolk — are those engaged in the production, growing, harvesting, processing,
marketing, developing, conserving, and managing of aquatic resources and fisheries areas

¢) Production Subsidy ~ Necessary government support in the form of cash that will augment
the capacity of farmers and fisherfolk to continue their farming and fishing activities.

d) Poor families - are those whose monthly income stands at less than P23,660.

) Low-income families - are those whose monthly income stands between P23,660 to
60,000.

SECTION 4. Production Subsidy Program — A Production Subsidy Program shall be
implemented to cover 9.7 million farmers and fisherfolk affected by increasing cost of farm


inputs such as fertilizer, rising fuel prices, economic disruptions due to the COVID-19
pandemic and those who are affected by the series of calamities from 2020 to 2021 . Provided
that a fixed one-time production subsidy of Fifteen Thousand Pesos (PhP15,000.00) shall be
provided to each of the beneficiary-family. Provided further, that the availment of the
Production Subsidy Program should not affect the eligibility of a farmer and/or a fisherfolk to
other social protection and livelihood support programs. Provided finally, that a definite and
actual list of 9.7 million beneficiaries of the production subsidy program shall be finalized and
submitted by the Department of Agriculture (DA) and the Philippine Statistics Authority (PSA),
in coordination with local government units, to Congress two (2) weeks after the effectivity of
this Act.

The sum of One Hundred Forty-five Billion and Five Hundred Million Pesos (Php
145,500,000,000.00) is hereby appropriated to the Department of Agriculture for the
implementation of this Section.

SECTION 5. Eligibility. To be eligible under this Act, a farmer and or fisherfolk must be
classified as poor and low-income, and must include as member of any of the following

a) Beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps)
b) Beneficiaries of the Unconditional Cash Transfer (UCT) program
c) Farmers and fisherfolk who are not beneficiaries of 4Ps or UCT but eamed less due to the
rising cost of farm inputs, rising fuel prices and effects of calamities.

SECTION 6. Form and manner of payment. The one-time Production Subsidy shall be
released to target beneficiaries either in cash or via electronic payment or any banking or non-
banking service, whichever is more practical and acceptable to the beneficiary, in the most
expeditious manner within the period covered by the program.

SECTION 7. Waiver of fees. Any transaction or service fee arising from the payment of cash
subsidy to target beneficiaries, whether through banking or non-banking modes of cash
transfer, is hereby automatically waived. For this purpose, the Department of Agriculture shall
enter into a memorandum of agreement (MOA) with banking institutions and financial service
providers.

SECTION 8. Sources of funding. For the implementation of Section 4 of this Act, the herein
production subsidy shall be funded from the following:

() 2022 General Appropriations Act (GAA): Provided, That funds for the herein authorized
programs, activities and projects (P/A/Ps) shall be sourced primarily from the unprogrammed
funds and savings realized from modified, realigned, or reprogrammed allocations for
‘operational expense of any goverment agency or instrumentality under the Executive
Department, including, but not limited to, traveling expenses, supplies and materials,
expenses, professional services, infrastnicture projects, general services, advertising
expenses, printing and publication expenses, and other maintenance and operating expenses
in the 2022 GAA: Provided, That such discontinued P/A/Ps do not support the objectives of
economic stimulus and recovery for having low labor intensity or low muttiplier effects
Provided, further, That infrastructure, having the highest multiplier effect can only be
discontinued when all other funds, including unobligated allotments and unreleased
appropriations, have been exhausted

Notwithstanding the provisions of this Act, the discontinued P/A/Ps may be revived at any time
after the COVID-19 pandemic has ceased, and notwithstanding the provisions of Republic Act
No. 11639 or the “General Appropriations Act of 2022", may be revived and proposed for
funding within the next two (2) fiscal years.


(il) Savings pooled pursuant to Republic Act No. 11469, otherwise known as the “Bayanihan
to Heal as One Act” and Republic Act No. 11494, otherwise known as “Bayanihan to Recover
as One Act”

(iii) Excess revenue collections in any one of the identified tax or non-tax revenue sources
from its corresponding revenue collection target, as provided in the FY 2022 Budget of
Expenditures and Sources of Financing (BESF):

(iv) New revenue collections or those arising from new tax or non-tax sources which are not
part of nor included in the original sources included in the FY 2022 BESF.

(v) Any unutilized or unreleased balance in special purpose funds (SPF), including, but not
limited to, funds appropriated towards the Barangay Development Program, shall be
considered to have their purpose abandoned. Ali such unspent, unutilized, or unreleased
money or funds sourced from SPFs shall be utilized and are hereby appropriated for such
measures to address the COVID-19 situation and to accomplish the declared national policy
herein;

(vi) Cash, funds, and investments held by any GOCC or any National Government Agency:
Notwithstanding any law to the contrary, the President is hereby authorized to allocate cash,
funds, investments, including unutilized or unreleased subsidies and transfers, held by any
GOCC or any National Government Agency in order to address the COVID-19 Pandemic; and
(vii)Unused appropriation for debt servicing: Notwithstanding any Jaw to the contrary, the
President may direct the discontinuance of unutilized automatic appropriations for debt service
and available appropriation for redemption of maturing government securities and use the
savings generated therefrom to augment the allocation for any item necessary for the
Purposes identified in this Act.

All amounts so reprogrammed, reallocated, or realigned shall be deemed automatically
appropriate for the said purposes: Provided, That for interest payments, the savings will be
generated from the unused appropriations after actual payment of interest per month as
reported by the Bureau of Treasury to the DBM: Provided further, That for principal repayment
the savings will be generated from the funds freed up as a result of a debt exchange by the
Bureau of Treasury.

For succeeding implementation of this Act, the amounts necessary to carry out the provisions
of this Act shall be included in the annual General Appropriations Act (GAA) and shall be
appropriated under the Department of Agriculture in accordance with the provisions of this
Act

SECTION 9. Separability Glause. If, for any reason, any portion oF provision of this Act shall
be held unconstitutional or invalid, the remaining provisions not affected thereby shall continue
to be in full force and effect,

SECTION 10. Repealing Clause. Any law, presidential decree or issuance, executive order,
letter of instruction, department order, administrative order, rule or regulation contrary to, or
inconsistent with the provisions of this Act is hereby repealed, modified or amended
accordingly

SECTION 11. Effectivity. This Act shall take effect fifteen (15) days affer its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,