Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
TO DEVELOP AND STRENGTHEN THE AGRICULTURAL EDUCATION 
AND TRAINING IN THE COUNTRY THROUGH THE  
INSTITUTIONALIZATION OF MANPOWER DEVELOPMENT FOR 
AGRICULTURAL ENTREPRENEURSHIP AT THE POST-SECONDARY 
LEVEL   
EXPLANATORY NOTE 
The Word Bank Organization determined that transforming Philippine 
agriculture into a dynamic, high-growth sector is vital for the country to 
speed up recovery, poverty reduction, and inclusive growth 1  through 
increased incomes among families as well as overall food security and 
nutrition2. 
The agricultural sector is among the primary sources of livelihood in the 
country, directly employing an average of 11.4 million 3 Filipinos, or the 
equivalent of nearly one-third of overall employment. However, the sector as 
a whole, produced only about 9% of the country’s gross domestic product 
making output per worker relatively low compared with industry and 
services.4   
With the great potential of the agriculture sector to address the growing 
concerns of food security, poverty, and unemployment, especially with the 
aftereffects of Covid-9 crisis, the government must ensure that programs of 
capacity building and human capital development, particularly on 
entrepreneurship, in this sector are upheld and supported. 
1 World Bank Organization. 2020. Press Release “Philippines: Vibrant Agriculture is Key to 
Faster Recovery and Poverty Reduction”. 9 September 2020 
2 Food and Agriculture Organization of the United Nations. 2017. “The Future of Food and 
Agriculture”.  
3 Philippine Statistics Authority.2019 Selected Statistics on Agriculture 2010-2019. 
4 PIDS 2021 Policy Notes. “Current state, challenges, and ways forward.”  
March 1, 2023
3:59 pm
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Although various laws have been enacted to increase the interest of 
young Filipinos in agriculture such as Republic Act No. 10618, otherwise 
known as Rural Farm Schools, the State can expand education and capacity-
building initiatives to include agricultural entrepreneurship at the post-
secondary level. 
Cognizant of the health risks brought about by the COVID-19 pandemic, 
this bill seeks to complement current agricultural entrepreneurship training 
initiatives under different modalities of learning, such as in-school, on the 
job, and online. Interested and qualified trainees shall undergo 
entrepreneurship training that will be consistent with the ladderized system 
of agricultural education and training at the post-secondary level. 
In view of the foregoing, approval of this bill is urgently sought. 
REP. PM VARGAS   
Fifth District, Quezon City 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
TO DEVELOP AND STRENGTHEN THE AGRICULTURAL EDUCATION 
AND TRAINING IN THE COUNTRY THROUGH THE  
INSTITUTIONALIZATION OF MANPOWER DEVELOPMENT FOR 
AGRICULTURAL ENTREPRENEURSHIP AT THE POST-SECONDARY 
LEVEL   
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Agricultural 
Entrepreneurial Education Act.” 
SECTION 2. Declaration of Policy. – It is hereby declared the policy of the 
State to promote the sustained development of a reservoir of national talents 
consisting of Filipino scientists, entrepreneurs, professionals, managers, 
high-level technical manpower and skilled workers and craftsmen in all fields. 
Towards this end, manpower education and training in the agricultural sector 
must be developed and strengthened in order to provide the country with a 
pool of educated and skilled agricultural manpower equipped with 
appropriate skills in agriculture and business, and desirable work habits and 
attitudes.    
SECTION 3. Definition of Terms. – For purpose of this Act, the following 
terms shall mean:  
a) Agricultural Entrepreneurship refers to the process of identifying,
starting, and managing a farm business or enterprise, sourcing and
organizing the required resources, and taking both the risks and
rewards associated with the venture;
b) Manpower education and training refers to the industrial delivery
system of agricultural, technical, and, vocational education and
training that combines hands-on and in-school training based on a
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training plan designed and implemented by an accredited manpower 
education and training institution for agricultural, industrial, and 
business establishments with prior notice and advice to the local 
government unit concerned; 
 
c) Trainee refers to a person qualified to undergo the manpower 
education and training for agriculture entrepreneurship;  
 
d) Farm Business Schools are post-secondary schools where students, 
who are graduates of the Rural Farm Schools or any qualified 
secondary institution specializing in agriculture, shall be trained on 
agricultural entrepreneurship; 
 
e) Accredited dual training system education institution or training 
center refers to a public or private institution duly recognized and 
authorized by the TESDA in coordination with the agricultural 
sector, business, and industry, to participate in the manpower 
education and training for agricultural entrepreneurship; 
 
f) Accredited dual training system agricultural, industrial, and 
business establishment refers to a juridical entity duly recognized 
and authorized by the TESDA to participate in the dual system for 
manpower education and training for agricultural entrepreneurship; 
and,  
 
g) Establishments refer to enterprises or services, or both of 
agricultural, industrial, or business establishments. 
 
SECTION 4. Objectives –This Act primarily aims to develop and strengthen 
agricultural 
education 
and 
training 
in 
the 
country 
through 
the 
institutionalization 
of 
manpower 
development 
or 
agricultural 
entrepreneurship in the post-secondary level. It shall have the following 
specific objectives. 
 
a) Encourage the application of manpower development for agricultural 
entrepreneurship 
in 
agricultural, 
technical, 
and 
vocational 
education and training by both public and private schools within the 
context of existing agricultural training and educational system; 
 
b) Promote investment in manpower education and training for 
agriculture entrepreneurship by both public and private sectors, 
especially in rural areas; 
 
c) Enhance the managerial skills and technical competence of students 
of agriculture by equipping them with analytical and creative 
thinking and problem-solving abilities; manipulative competencies 
suitable for occupational standards and requirements; values and 
attitudes with emphasis on work ethics; quality orientation, 
discipline, honesty, self-reliance, and patriotism; and  


 
d) Strengthen training cooperation between agricultural, industrial, 
and business establishments and educational institutions by 
designing and implementing relevant training programs in close 
coordination with local government units.   
 
SECTION 5. Agricultural Manpower Education and Entrepreneurship 
System. – The State hereby establishes the Agricultural Manpower Education 
and Entrepreneurship System (AMEES) that will assume a leadership role in 
the post-secondary, vocational, or tertiary level of agricultural and 
entrepreneurship education, following the completion of the rural farm 
school’s curriculum in the secondary level. 
 
SECTION 6. Institutionalization of Manpower Education and Training 
for Agricultural Entrepreneurship. – The manpower education and training 
for 
agriculture 
entrepreneurship, 
hereafter 
the 
System, 
shall 
be 
institutionalized in the Philippines. It shall form part of the post-secondary 
education curriculum as this Act provides. 
 
SECTION 7. Coverage – This Act shall apply to all public and private 
educational institutions or training centers, and agricultural, industrial, and 
business establishments duly accredited to participate in the manpower 
education and training for agricultural entrepreneurship. 
 
SECTION 8. Components of the Manpower Education and Training for 
Agricultural Entrepreneurship. – The manpower education and training for 
agricultural entrepreneurship shall have the following components: 
 
 
a) There shall be a ladderized system of agriculture entrepreneurship 
education that begins at the post-secondary level following the 
completion of the Rural Farm School curriculum as provided in the 
Republic act Bo. 10618 (Rural Farm School Act of 2013), or upon 
graduation in any qualified secondary institution, and culminates in 
applicable collegiate courses. The post-secondary program shall 
involve 
the 
conferment 
of 
a 
Diploma 
in 
Agricultural 
entrepreneurship upon graduation of the trainee from the Farm 
Business Schools who shall have the option to continue his or her 
studies in partner universities for a degree in Bachelor of Science in 
Entrepreneurial Management, major in Farm Business; 
 
b) There shall be created for each administrative region (excluding the 
National Capital Region) an AMEES Development School or Farm 
Business School, and such other schools as may be established by 
law; 
 
c) There shall be an instructional delivery system of agricultural, 
technical and vocational education and training in each Farm 
Business School that implements blended learning consisting of 
hands-on, in-school, and online modules based on a training plan 


designed and implemented by an accredited manpower education 
and training institution for agricultural entrepreneurship and 
accredited dual system agricultural, industrial and business 
establishments with prior notice and advice to the local government 
unit concerned. Under this dual system, said establishments and 
the educational institution share the responsibility of providing the 
trainee with the best possible competencies and experience, the 
former essentially through practical training, and, when possible, 
remote training in the latter, by providing an adequate level of 
specific, general and theoretical instruction on agriculture and 
entrepreneurial management; 
 
d) The AMEES shall include instruction on vital values on citizenship,   
governance, entrepreneurship, work ethics, quality orientation, 
discipline, honesty, and self-reliance; 
 
e) The partnership between the public, private, and voluntary sectors 
shall be a crucial component of the AMEES in both academic content 
and in on-the-job, hand-on, or remote training; and, 
 
f) The AMEES shall also be promoted among poor farming families and 
out-of-school youth in rural areas and in agrarian reform 
communities. The AMEES shall ensure that poor and deserving 
youth receive the necessary grants and scholarships. 
 
SECTION 9. Board of Trustees. – There shall be a Broad of Trustees, herein 
referred to as the Board, composed of the Secretary of the Department of 
Agriculture (DA) as ex-officio Chairman, the Chairman of the Commission on 
Higher Education (CHED) as ex-officio Vice Chairman, and the following 
members: 
 
a) The Chairman of the Technical Education and Skills Development 
Authority (TESDA); 
 
b) The Director of the Bureau of Micro, Small, and Medium Enterprise 
and Development (BMSMED); 
 
c) The Director of the DA-Agricultural Training Institute (ATI); 
 
d) Two (2) Representatives from the private sector representing higher 
education, industry, agriculture, and new and emerging agricultural 
technologies; and, 
 
e) Representative from a non-governmental organization.     
 
The representatives from the private sector and non-government 
organizations shall be appointed by the Chairman, subject to the confirmation 
of the Board of Trustees. 
 


The members of the Board shall serve for four years. 
 
SECTION 10. Powers and Functions of the Board. – The Board shall 
exercise the following powers and functions: 
 
a) Formulate policies and guidelines for the administration and 
operation of the AMEES; 
 
b) Formulate policies on the appointment, promotion, retention, 
removal, renewal, rewards, and incentives for administrators, 
faculty, and staff; 
 
c) Craft and approve the AMEES curricula; 
 
d) Approve the criteria for the selection and admission of students; 
 
e) Approve the grant scholarship, stipend, and such allowances for 
students; 
 
f) Approve the graduation of successful candidates from the various 
AMEES campuses or farm business schools; 
 
g) Formulate policies and rules of discipline for students, faculty and 
staff; 
 
h) Approve the AMEES budget and appropriate to the ends specified by 
law such sums as may be provided by law for the support of the 
System; 
 
i) Receive grants whether cash, land, buildings and improvements 
thereof; donations, contributions, bequest, gifts, and to formulate 
policies for the administration thereof; 
 
j) Develop policies for the expansion of enrollment in the campuses 
under the AMEES; 
 
k) Set policies and criteria  to rationalize the establishment of AMEES 
schools under the System, for its evaluation and approval thereof; 
 
l) Prepare strategic plans to enhance the capability of the AMEES in 
developing human resources with a focus on youth with special 
aptitudes and inclination to agriculture and entrepreneurship; 
 
m) Identify training centers/institutions that will provide manpower 
training and education; and, 
 
n) Perform such other functions as may be necessary to implement the 
provisions of this Act. 
 


SECTION 11. Career Management Development Division. – The Career 
Management Development Division (CMDD) of the Agricultural Training 
Institute (ATI) of the Department of Agriculture (DA) shall plan, set standards, 
coordinate, monitor, and allocate resources in the implementation of the 
provisions of this Act and in support of the in plant, on-the-job, or remote 
training components of the AMEES: Provided, That the agricultural and agro-
industrial establishment shall be required to furnish the AMEES with the 
necessary information for the purpose of supervision. 
 
 
The CMDD shall be headed by a Division Chief (DC). The DC shall be 
assisted by such other personnel as may be necessary for the effective 
discharge of the functions of the office.  
 
SECTION 12. Duties and Functions of the Division Chief. – The DC shall 
perform the following duties and functions:  
 
a) Coordinate curriculum planning activities for the AMEES; 
 
b) Coordinate publication of farm business outputs of the teachers, 
administrators, and students from the AMEES; 
 
c) Provide legal and technical support to the members of the System;  
 
d) Coordinate exchange programs with other educational institutions both 
local and foreign, including youth development and empowerment 
organizations such as the 4-H Club; 
 
e) Develop and coordinate linkages and networking among the campuses 
of the AMEES with other institutions; 
 
f) Coordinate the implementation of the program for the identiﬁcation and 
selection of scholars for the AMEES; 
 
g) Provide for the secretariat services of the Board of Trustees; and 
 
h) Perform such other functions as may be deemed necessary for the 
effective discharge of the DOS duties. 
 
SECTION 13. Status of Trainee. – Any student who is a bona fide graduate 
of a Rural Farm School or any qualiﬁed secondary educational institution 
shall be eligible to enroll in a farm business school. For the duration of the 
post-secondary manpower training under the System, the trainee is to be 
considered not an employee of the business/ industrial establishment but 
rather a trainee of both the accredited dual training system educational 
institution and the agricultural, industrial, and business establishments: 
 
Provided, That the union or the workers of the latter have been duly informed 
in advance of such an agreement. 
  


        A trainee who has successfully completed a training program in a 
particular agricultural, industrial, or business establishment shall be given 
priority of employment in that agricultural, industrial, or business 
establishment. The CHED shall keep a roll of these successful trainees for 
purposes of identifying them for employment. 
 
SECTION 14. Obligations of the Accredited Educational Institutions or 
Training Centers. – The educational institutions or training centers that 
have entered into a memorandum of agreement with agricultural, industrial 
or business establishments to undertake training shall: 
 
a) Ensure that the necessary skills and knowledge are imparted to the 
trainee during his or her in-school trainings in accordance with an 
approved training plan; 
 
b) Design, implement and evaluate jointly the training plan with the 
accredited agricultural, industrial, and business establishments; 
 
c) Provide the training instructors; 
 
d) Provide 
speciﬁc, 
general, 
and 
occupation-related 
theoretical 
instructions; 
 
e) Appoint industrial coordinators to supervise the in-plant or farm 
training; 
 
f) Pay the trainee his or her daily allowance; 
 
g) Provide tools and equipment necessary for blended learning; and, 
 
h) Perform such other tasks and activities as may be necessary in 
furtherance of the objectives of the training. 
 
SECTION 15. Obligations of Accredited Agricultural, Industrial and 
Business Establishments. – The agricultural, industrial, and business 
establishments shall have the following duties and responsibilities: 
 
a) Ensure that the necessary skills and knowledge are imparted to the 
trainee during his or her hands-on trainings in accordance with an 
approved systematic training plan; 
 
b) Appoint the training ofﬁcer/ 5 to implement the training plan; 
 
c) Make available, free of charge, the, consumable materials and basic 
hand tools and equipment necessary for the training; 
 
d) Allow the trainee to attend training and to take examinations, whether 
in-school or online; 
 


e) Require the trainee to keep his or her report book up to date and inspect 
such books; 
 
f) Ensure that the trainee is encouraged to develop his or her personality 
and that he or she is protected from physical or moral danger; 
 
g) Entrust to the trainee such jobs as are related to the purpose of his or 
her training and are commensurate with his or her capabilities; 
 
h) Pay to the accredited educational institution/ training center the daily 
allowance of the trainee; 
 
i) Allow the trainee the necessary time off for his or her in-school training; 
and, 
 
j) Perform such other obligations in accordance with the provisions of this 
Act and other prevailing laws of the Philippines. 
 
SECTION 16. Obligations of the Trainee. – A trainee shall exert every effort 
to acquire the skills and knowledge necessary for him or her to achieve the 
purpose of his or her training. Towards this end, the trainee shall: 
 
a) Carefully perform the jobs entrusted to him or her as part of his or her 
training; 
 
b) Take part in training programs for which he or she has been granted 
time off under this Act; 
 
c) Follow the instruction given to him or her as part of his or her training 
by the training ofﬁcer or any other person entitled to give him or her 
such instructions; 
 
d) Observe rules of behavior in the training premises; 
 
e) Use tools, instruments, machines, and other equipment with due care; 
 
f) Not reveal any business or trade secrets that have come to his or her 
knowledge in the course of his or her training; 
 
g) Keep his or her record books up to date; and, 
 
h) Perform such other obligations in the attainment of the objectives of 
this Act. 
 
SECTION 17. Memorandum of Agreements.- Prior to the commencement of 
any manpower training, a memorandum of agreement (MOA) shall be signed 
by all parties which shall stipulate the following, among others:  
 
a) the training plan; 


b) the nature and objective of the training; 
c) the commencement and duration of the training period, including the 
total number of in-plant / farm training hours; 
 
d) the normal daily training hours; 
 
e) the trainee's allowance and the rate to be applied, which shall not be 
less than seventy-ﬁve (75) per cent of the applicable minimum daily 
wage; 
 
f) the rights and obligations of the parties concerned in addition to those 
provided in Sections 14, 15 and 16; 
 
g) the deﬁnition of the status of the trainee according to Section 13 of this 
Act;  
 
h) the conditions for the termination of the training agreement; 
 
i) the performance, monitoring and evaluation system; and, 
 
j) such other essential particulars as would mutually beneﬁt all parties 
concerned. 
 
SECTION 18. Loan Programs for the Purchase of Blended Learning Tools 
and Equipment.- To achieve the objectives under Sec. 14 of this Act, 
concessional loan programs shall be developed by appropriate Government 
Financial Institutions (GFIs) for the purchase of blended learning tools and 
equipment by Accredited Educational Institutions or Training Centers, such 
as computers, laptops, tablets, and other ICT devices and equipment 
necessary to conduct and access related trainings and learning materials. 
 
SECTION 19. Incentives for the Trainees.- 
 
a) Every agricultural, industrial and business establishment undertaking 
training, in accordance with the provisions of this Act, shall sign a life 
and / or accident insurance policy on the life of the trainee with the 
insured and the spouse, children or parents of the trainee as the 
beneﬁciaries thereof: Provided, That the agricultural, industrial and 
business establishments shall pay for the premiums of said insurance 
policy. 
 
b) Upon graduation, the students will be provided funding as start—up 
capital for their farm business. Financial services and programs shall 
be made available to them as stipulated in Republic Act No. 10000 or 
the "The Agri-Agra Reform Credit Act of 2009". Students should be able 
to avail of loans without the need for collateral. A government guarantee 
fund shall be set aside for this purpose in case of a default or failure to 
pay the debt: Provided, That a proof is presented that the student 


suffers from ﬁnancial hardships and is no longer able to pay his or her 
loan. 
 
c) The government shall also extend incentives to students for the 
production and propagation of organic farm inputs by maximizing their 
use in all government and government-supported agricultural 
production, research and demonstration programs, as embodied in 
Republic Act No. 10068 or the "Organic Agriculture Act of 2010". 
 
SECTION 20. Incentives for Participating Establishments. – To 
encourage 
agricultural, 
industrial, 
and 
business 
establishments 
to 
participate in the system, they shall be allowed to deduct from their taxable 
income the amount of one hundred and ﬁfty percent (150%) of the system 
expenses paid to the accredited dual training system educational institution 
for the establishment's trainees: Provided, That such expenses shall not 
exceed ﬁve percent (5%) of their total direct labor expenses but in no case to 
exceed twenty—ﬁve million pesos (P25,000,000.00) a year. 
 
Donations for the operation of the system shall be deductible from the 
taxable income of the donors. Donations to government-run educational 
institutions shall be awarded incentives under Republic Act No. 8525 or the 
"Adopt-a-School Act of 1998". 
  
       The Department of Finance shall issue the necessary rules and 
regulations to implement the provisions of this Section. 
 
SECTION 21. Non-diminution of Incentives. – Nothing in this Act shall be 
construed to diminish or reduce any privilege already enjoyed by the parties 
concerned under existing laws, decrees or executive orders. 
 
SECTION 22. Other Exemption from Taxes and Duties. - Any donation, 
contribution, bequest, subsidy or ﬁnancial aid which may be made for the 
operation of the system shall constitute an allowable deduction from the 
income of the donors for income tax purposes and shall be exempt from 
donor's tax, subject to such conditions as provided under the National 
Internal Revenue Code, as amended. Essential equipment apparatus and 
materials imported by accredited dual training private educational 
institutions shall be exempt from taxes and duties: Provided, That the 
importation of these items shall be subject to the following qualiﬁcations that: 
 
the importation shall be certiﬁed by the appropriate authority; 
 
they should be actually, directly and exclusively used in connection with the 
dual training system and any unauthorized use shall subject the accredited 
dual training' private educational institutions to payment of taxes and duties 
thereon; and, 
  
they are not available locally in sufﬁcient quantity of comparable quality, and 
at 35 reasonable prices. 


 
Provided, however, That taxes and duties pertaining to the importations 
of accredited government and dual training educational institutions are 
deemed automatically appropriated. 
 
      The Department of Finance (DOF) shall accumulate the necessary rules 
and regulations to implement the provisions of this section. 
 
SECTION 23. Revolving Fund. – Any law, rule or regulation to the contrary 
notwithstanding, 
the 
accredited 
dual 
training 
system 
educational 
institution/training center is hereby authorized to retain as a revolving fund 
the amount paid to it by the agricultural, industrial and business 
establishments representing the actual dual training expenses. The fund shall 
be used to improve the operation of the dual training system. 
 
SECTION 24. Implementing Rules and Regulations.- The CHED, DA, 
TESDA and DOF, in coordination with other industries concerned, shall issue 
the necessary rules and regulations for the effective implementation of this 
Act within a period of ninety (90) days after its effectivity. 
 
SECTION 25. Non-Impairment Clauses. - Nothing in this Act shall be 
construed as to diminish, impair, or repeal rights recognized, granted, or 
made available to disadvantaged, marginalized, or speciﬁc sectors under 
existing laws. 
 
SECTION 26. Separability Clause.  -  If any part or provision of this Act is 
declared unconstitutional or invalid, other parts or provisions thereof which 
are not affected thereby shall continue to be in full force and effect. 
 
SECTION 27. Repealing Clause. – All laws, decrees, executive orders, rules 
and regulations or other issuances or parts thereof, inconsistent with this Act, 
are hereby repealed, amended or modiﬁed accordingly. 
 
SECTION 28. Effectivity. – This Act shall take effect ﬁfteen (15) days after 
its publication in the Ofﬁcial Gazette or in two (2) newspapers of general 
circulation. 
 
 
Approved,