'. 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. 2142 
Introduced by Senator Poe 
AN ACT 
'14 
FEB 25 
A10 :42 
RECEIVED BY, -"r, 
STRENGTHENING ASSISTANCE TO FARMERS, FISHERFOLK AND AGRARIAN 
REFORM BENEFICIARIES BY INSTITUTIONALIZING DIRECT CREDIT 
SUPPORT TO THE SECTORS, AMENDING REPUBLIC ACT NO. 3844 OR THE 
AGRICULTURAL LAND REFORM CODE 
EXPLANATORY NOTE 
Agricultural sectors in other countries are successful and sustainable due to a • 
heavy state subsidy of their respective governments. In the Philippines, however, the 
agricultural sector has been considered the "poor man's sector" as Workers in the 
Philippine agricultural sector are considered the most marginalized and often regarded 
as a neglected sector in the past years. According, to the Labor Force Survey of the 
National Statistics Office, about 1.15 million Filipinos are employed in the agricultural 
sector as of January 2013, the second largest group making up 30.4% of the total 
employed. 
The agriculture sector's contribution to the gross domestic product (GDP) has 
declined to 11% last year from 20 to 30 percent in the 23 years to 1969. To further sustain 
the declining share of state investments in agriculture, 
The agriculture sector can be a sustainable and competitive entity with proper 
management and government support, and with indispensable and wide-ranging 
reforms in the sector, which is considered as a major driver for domestic growth. 
It is high time that the government strengthen assistance and institutionalize 
direct credit support to farmers, fisherfolk and agrarian reform beneficiaries in the light 
of the ASEAN economic community to be established in 2015, as most agricultural 
products will enter the Philippines on lower or zero tariffs. 
~tLfCKL-
, GfAC~POE 


SCHilt£' 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
'14 
FEB 25 
A1O:42 
SENATE 
S. B. 21.42 
Introduced by Senator Poe 
AN ACT 
STRENGTHENING ASSISTANCE TO FARMERS, FISHERFOLK AND AGRARIAN 
REFORM BENEFICIARIES BY INSTITUTIONALIZING DIRECT CREDIT 
SUPPORT TO THE SECTORS, AMENDING REPUBLIC ACT NO. 3844 OR THE 
AGRICULTURAL LAND REFORM CODE 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Section 74 of Republic Act No. 3844, as amended by republic Act 
No. 10374, otherwise known as the Agricultural Land Reform Code is further amended 
to read as follows: 
"Sec. 74 Creation. - To finance the acquisition by the Government 
of landed estates for division and resale to small landholders, as well as 
the purchase of the landholding by the agricultural lessee from the 
landowner, there is hereby established a body corporate to·be known as 
the 'Land bank of the Philippines', hereinafter called the 'bank', which 
shall have its principal place of business in Manila. The legal existence of 
the Bank is extended for a period of fifty (50) years from the expiration of 
its original term on 08 August 2013, renewable for another fifty (50) years. 
The Bank shall be subject to such rules and regulations as the [Central 
Bank] BANGKO SENTRAL NG PILIPINAS may from time to time 
promulgate. 
"THE BANK SHALL ALLOCATE FIVE PERCENT (5%) OF ITS 
REGULAR LOAN PORTFOLIO (NET OF LOANS TO THE BANGKO 
SENTRAL NG PILIPINAS, INTERBANK LOANS AND A V AILMENTS 
FROM 
DOMESTIC 
BILLS 
PURCHASE 
LINE), 
WHICH 
IS 
MAINTAINED 
IN 
A 
SEPARATE SPECIAL 
WINDOW 
FOR 
SOCIALIZED 
CREDIT 
TO 
QUALIFIED 
SMALL 
FARMERS, 
FISHERFOLK AND AGRARIAN REFORM BENEFICIARIES (ARBs). 
THIS FACILITY SHALL SOLELY FINANCE AGRICULTURAL 
PROJECTS PURSUANT TO THE PROVISIONS OF SECTION 4 OF 
REPUBLIC ACT NO. 10000, OTHERWISE KNOWN AS THE AGRI-
• 


~ \ ... 
AGRA REFORM CREDIT ACT OF 2009. THIS SPECIAL SOCIALIZED 
CREDIT WINDOW SHALL BE EXEMPT FROM THE STANDARD 
RULES ON LENDING OF THE BANGKO SENTRAL NG PILIPINAS 
AND OF THE COMMISSION ON AUDIT. 
"ALL 
LOANS 
EXTENDED 
THROUGH 
THIS 
SPECIAL 
SOCIALIZED CREDIT WINDOW SHALL QUALIFY AS PART OF THE 
BANK'S COMPLIANCE WITH THE AGRI-AGRA LAW. 
"CREDIT UNDER THIS SPECIAL SOCIALIZED WINDOW 
SHALL BE EXTENDED THROUGH THE FOLLOWING M,EANS: 
"(A) FARMERS' AND FISHERFOLK'S COOPERATIVES; 
"(B) FARMERS' AND FISHERFOLK'S ORGANIZATIONS OR 
ASSOCIATIONS; 
"(C) NON-AGRICULTURAL COOPERATIVES (CREDIT AND 
MULTIPURPOSE); 
"(D) COOPERATIVE BANKS; 
"(E) RURAL BANKS; 
"(F) THRIFT BANKS; 
"(G) 
AGRI-BUSINESS 
FIRMS 
OR 
ANCHOR 
FIRMS 
PROVIDING CREDIT SUPPORT TO ARBs, AND SMALL FARMERS 
AND FISHERFOLK; 
"(H) NON-GOVERNMENT ORGANIZATIONS; 
"(I) FOUNDATIONS WITH LENDING AUTHORITIES 
"(J) 
ALL 
OTHER MEANS 
THAT WILL 
BE 
DEEMED 
QUALIFIED BY THE BANK. 
LOANS UNDER THIS SOCIALIZED CREDIT WINDOW 
SHALL HAVE AN INTEREST RATE EQUIVALENT TO r:-rOT MORE 
THAN 
SEVENTY-FIVE 
PERCENT 
(75%) 
OF 
THE 
BANK'S 
PREVAILING RATES FOR LOANS TO COOPERATIVES; PROVIDED, 
THAT THESE MEANS SHALL HAVE AN INTEREST SPREAD OF 
NOT MORE THAN FIVE (5) PERCENTAGE POINTS. THE INTEREST 
SPREAD SHALL EXCLUDE CROP INSURANCE PREMIUMS AND 
GUARANTEE FEES. 
"CRITERIA 
FOR 
ELIGIBILITY 
UNDER THIS 
SPECIAL 
SOCIALIZED CREDIT WINDOW SHALL BE REFLECTED IN THE 
IMPLEMENTING RULES AND REGULATIONS." 
SECTION 2. Section 75 of the Republic Act No. 3844, as amended, is further 
amended by adding a new subsection (15) to read as follows: 
"(15) TO OFFER AND ISSUE COMMON AND PREFERRED 
SHARES 
OF 
STOCKS 
TO 
ARBs, 
SMALL 
FARMERS 
AND 
FISHERFOLK 
THROUGH 
THEIR 
ORGANIZATIONS, 
COOPERATIVES, FEDERATIONS AND COOPERATIVE BANKS; 
• 


, 
d , 
DEVELOPMENT PARTNERS AND STRATEGIC INVESTORS SUCH 
AS MULTILATERAL AND BILATERAL INSTITUTIONS; RURAL 
BANKS AND THEIR ASSOCIATIONS, IN QUANTITIES TO BE 
DETERMINED 
BY 
THE BOARD OF DIRECTORS AND IN 
ACCORDANCE 
WITH 
APPLICABLE. LAWS, 
RULES 
AND 
REGULATIONS; PROVIDED, HOWEVER, THAT THE NATIONAL 
GOVERNMENT SHALL MAINTAIN, AT ALL TIMES, AT LEAST 
TWO-THIRDS (2/3) OWNERSHIP OF THE TOTAL OUTSTANDING 
COMMON SHARES OF THE BANK. 
"PREFERRED SHARES OF STOCK SHALL BE NON-VOTING. 
OTHER 
FEATURES 
OF 
PREFERRED 
SHARES 
SHALL 
BE 
DETERMINED BY THE BOARD OF DIRECTORS. 
"LOANS 
TO 
COOPERATIVES, 
FEDERATIONS, 
COOPERATIVE 
BANKS, 
RURAL 
BANKS 
AND 
THEIR 
ASSOCIATIONS WHICH OWN COMMON SHARES OF STOCKS IN 
THE BANK SHALL NOT BE COVERED BY RULES ON LOANS TO 
DIRECTORS, 
OFFICERS, 
STOCKHOLDER 
AND 
RELATED 
INTERESTS (DOSRI)." 
SECTION 3. Repealing Clause. - All laws, executive orders, rules and 
regulations or parts thereof inconsistent with any provision hereof are hereby repealed 
or modified accordingly. 
SECTION 4. Separability Clause. - If any prOVIsion or part hereof is held' 
invalid, the other provisions not affected thereby shall remain and continue to be in full 
force and effect. 
SECTION 5. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the official gazette or in any newspaper of general circulation. 
Approved, 
• 
•