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

SIXTEENTH CONGRESS
First Regular Session

206

House Bill No.

Introduced by Honorable SALVACION S. PONCE ENRILE,

EXPLANATORY NOTE

A Filipino is secured if he has sovereignty. This bill requires the Department
of Agriculture (DA) to define and put together a Food Requirement Plan for Filipinos,
ensuring that all Filipinos are able to eat from what is locally produced first before
exporting our produce to the international market. As such, if there is a shortage in
the total supply of rice, fish, livestock and poultry, vegetables and fruits needed to
feed the total number of Filipinos, the Department of Trade and Industry shall be able
to roll out a trade plan to source out the same from our trading partners.

Consequently, our export and import policies as a nation shall be adjusted to
what is needed by our people first before we send our raw materials and produce to
other nations. ‘The measure also corrects the organizational dysfunction of the
National Food Authority by decoupling its proprietary and regulatory functions.
Under this measure, a new trading entity is created known as the National Strategic
Food Supply and Reserve Corporation or NSFSRC. The regulatory function of the
then NFA will be given to the Department of Agriculture

With the Food Requirement Plan, the DA is able to plan which province
should produce what, enhance its competitiveness through infrastructure support,
monitor, distribute and market the produce, ensuring supply chain management is
enforced in order to identify gaps in terms of the food requirement per province.

This measure is based on the principle of food sovereignty, which is the “right
of peoples, communities and countries to define their own agricultural, labor, fishing,
food and land policies, which are ecologically, socially, economically and culturally
appropriate to their unique circumstances. It includes the true right to food and to
produce food, which means that all people have the right to safe, nutritious and
culturally appropriate food and to food producing resources and the ability to sustain
themselves and their societies.” Food security on the other hand, refers to “the
availability of food and one's access to it. A household is considered food-secure
when its occupants do not live in hunger or fear of starvation.”



The Philippines is an endowed country. It is surrounded by water, the soil is
still relatively fertile; several agricultural research and development schools abound:
an active poultry and livestock industry is evolving.

Passage of this measure is earnestly requested

‘ACION S. PONCE ENRILE


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

SIXTEENTH CONGRESS
First Regular Session

House Bill No.2 96

Introduced by Honorable SALVACION S, PONCE,

AN ACT
PROVIDING FOR A SYSTEM OF DETERMINING THE MINIMUM FOOD
REQUIREMENTS OF FILIPINOS, REORGANIZING THE NATIONAL.
FOOD AUTHORITY, ESTABLISHING THE NATIONAL STRATEGIC
FOOD SUPPLY AND RESERVE CORPORATION
AND FOR OTHER PURPO:

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 and cited as the
Jor Filipinos First Act of 2013.”

L DECLARATION OF POLICY

SEC. 2. Statement of Policy — It is hereby declared the policy of th
promote a just and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through policies that
provide adequate social services, promote full employment, a rising standard of
living, and an improved quality of life for al.

Il. _ NON-CONVERSION OF DECLARED STRATEGIC AGRICULTURE
AND FISHERIES DEVELOPMENT ZONE AND CREATION OF LOCAL
PROTECTED FISHING ZONES IN COASTAL MUNICIPALITIES AND

CITIES

SEC 3. Non-conversion of Lands in Strategic Agriculture and Fisheries
Development Zone within declared Network of Protected Areas for Agricultural and
Agro-industrial Development. There shall be no conversion of lands already
identified by the Department of Agriculture through the Bureau of Soils and Water
Management in coordination with the National Mapping and Resource Information
Authority and included under the Strategic Agriculture and Fisheries Development
Zone (SAFDZ) as provided for under Republic Act No. 8435.


SEC. 4. Identification, Delineation and Establishment of Local Protected
Fishing Zones in Coastal Municipalities and Cities. — In furtherance of Republic Act
No. 8550 and within six months from the effectivity of this Act, all coastal
‘municipalities and cities shall identify, delineate and establish Local Protected Fishing
Zones or LPFZ within their respective jurisdictions, after conducting consultations
with fisherfolk organizations within the affected barangays. The LPFZ must have a
minimum area of ten hectares: Provided That in areas where the total area of
municipal waters is fifteen hectares or less, the LPFZ shall comprise 20% of
municipal waters.

The Department of Agriculture shall maintain a registry of LPFZ nationwide
while the provincial government shall issue the necessary rules and regulations in
LPFZ, determining the catch ceilings, maximum sustainable yield as well as closed
seasons. These information shall be included in the National Food Requirement Plan
(NERP) of the province, which the provincial government shall submit to the
Department of Agriculture as provided for under Section 6 of this Act.

Ill. SYSTEM OF DETERMINING THE NATIONAL FOOD
REQUIREMENTS OF FILIPINOS

SEC. 5. Determination of Food Requirements of Filipinos. — The Departments
of Agriculture and Trade and Industry shall formulate together the National Food
Requirement Plan (NFRP) where the food requirements of Filipinos are identified and
production delineated among provincial producers of specific food requirements:
Provided That, a schedule of production is agreed upon among competing provinces
based on specific timelines and weather patterns ensuring that shortfalls arising from
weather disturbances in one location can be augmented by another: Provided further,
That provinces classified as poor, based on its Human Development Index, would
have the priority in the allocation of produce based on their defined requirements:
Provided finally That any shortfall in the NFRP that cannot be supplied by the
domestic market shall be sourced from trading partners in the region pursuant to an
Agricultural Importation Inventory as established by the Department of Agriculture i
consultation with the National Strategic Food Supply and Reserve Corporation
(NSFSRC) as provided for in Section 14 of this Act .

SEC. 6. Local Governments ~ It shall be the responsibility of the provincial
local chief executive to submit the Provincial Food Requirement Plan to the
Department of Agriculture every March of the previous year so that the Department
of Agriculture, in collaboration with the Department of Trade and Industry, can
formulate the NFRP before the budget call for purposes of authorization and inclusion
in the proposed budget of the succeeding year.

Iv. AGRICULTURAL INFRASTRUCTURE INVENTORY


SEC. 7. Agricultural Infrastructure Support Map (AISM).- The Departments
of Agriculture, Trade and Industry and Public Works and Highways shall map the
infrastructure requirements of each province producing the food requirements as
provided for under the NFRP. The AISM shall be the basis for the allocation of the
Agricultural Infrastructure Support Fund, hereinafter referred to as AISF, among
provinces and pursuant to such guidelines as provided for under the General
Appropriations Act per fiscal year.

‘The infrastructure requirement as provided for in this Section shall cover,
among others, farm-to-market and farm-to-port roads; irrigation system; post harv
facilities; cold storage facilities in every major port; food processing stations and food
packaging centers.

SEC. 8. Free Use by Accredited Farmers Cooperatives and Organizations of
Irrigation Systems Constructed, Funded and Maintained by the National Government.
~ Alll irrigation system built by the National Government shall be free to all accredited
farmers cooperatives and organizations in SAFDZs: Provided That, the National
Irrigation Authority (NIA) shall make a national inventory of all irrigation systems
and facilities three months after the effectivity of this Act and shall establish and
maintain a public, online repository known as the National Irrigation Database (NID)
which shall be updated annually, before planting season: Provided further That, the
NID shall include municipal, provincial, regional and national information on: a)
status of irrigation system, including the area and crop covered as well as the t
existing irrigation facilities; b) irrigation balances; c)listing of irrigation facili
rehabilitation: Provided finally That: the NIA shall submit a copy of the NID to both
chambers of Congress on April of every year, including an accomplishment report on
the implementation of Republic Act No. 6978.

V. _ BENEFITS FOR SMALL FARMERS, AGRICULTURAL PRODUCERS
IN SAFDZs, FISHERFOLKS IN LPFZ AND ACCESS TO CREDITS

SEC. 9. Social Support and Protection for Farmers, Agricultural Producers
and Fisherfolks.~ Every farmer and agricultural producer in SAFDZs and fisherfolks
in LPFZ shall have access to agricultural scholarships covering two of his/her
children: Provided That, the courses or trainings to be undertake are in the list of
courses and trainings pre-approved by the Department of Agriculture as relevant
and/or related to agriculture and agricultural production. The scholarship shall cover
the cost of tuition fee and books plus a minimum subsistence allowance.

SEC. 10. Courses Eligible for Agriculture Scholarship. ~ The Department of
Agriculture shall develop the list of degree and training courses eligible for
agriculture scholarship in consultation with the Department of Science and
Technology, the Commission on Higher Education, the Department of Labor and
Employment and the Department of Social Welfare and Development and two
representatives from national farmer’s and fisherfolks organizations to be appointed
by the President. The list shall be reviewed and updated every five years, beginning
from the implementation of the law.

SEC. 11. SUCs, TESDA and other Government Training Institutions, —
Agricultural and marine state universities and other government training institutions,


together with TESDA shall set aside 5% of its scholarships on agriculture, fishing and
similar fields of specialization to children of farmers and fisherfolks in accordance
with Section 9 of this Act: Provided That, the latter meet the regular entrance
requirements for students.

Children of farmers who are not able to meet the qualification requirements of
agricultural and marine state universities and colleges may have access to agriculture
related training and certificate courses through TESDA or any government institution
providing such trainings: Provided That, such trainings are included in the list of
courses eligible for scholarship as defined in Section 11 of this Act.

SEC. 12. A Nation’s Gratitude for Senior Farmers and Fisherfolks. =
Farmers and fisherfolks aged sixty-five years old and above, doing work in SAFDZ
and LPFZ respectively, shall have a monthly pension of Php1,000 per month from the
National Government and Php300.00 a month from the provincial local government,
The value of the monthly pension from the National Government shall be reviewed
and adjusted for inflation every three years by the Department of Social Work and
Welfare in consultation with the Departments of Agriculture, Finance, Budget and
Management, The monthly pension shall be released by the Department of Social
Work and Welfare every first Thursday of every month.

SEC. 13. Special Credit Window for Small Farmers and Fisherfolks in Rural
Banks. - All rural banks shall create a special window extending micro-credit program
for farmers in SAFDZs and fisherfolks in LPFZ. The funds allocated for the special
credit window shall be equivalent to at least fifty percent of their agri-agra funds:
Provided That, thirty percent of the loanable resources earmarked for the special
credit window shall be made exclusively available to small women farmers: Provided
‘finally That, funds allocated to the special credit window herein provided shall
constitute compliance to Republic Act No. 10000, otherwise known as the Agri-Agra
Reform Credit Act of 2009.

VI. MAKING LOCAL PRODUCE COMPETITIVE

SEC. 14. Removal of Subsidies - The Department of Agriculture shall
harmonize subsidies, within the purview of the National Food Sovereignty Program,
on export-oriented agriculture and transfer the same to grains and vegetable farmers
and livestock growers.

SEC. 15. Anti-Smuggling and Dumping Task Force in the Department of
Agriculture. - An Anti-Smuggling and Dumping Task Force is hereby created under
the Department of Agriculture who shall effect seizure of smuggled and dumped
agricultural products for distribution to provinces classified as poor per its Human
Development Index.



VIL. ESTABLISHMENT OF THE NATIONAL STRATEGIC FOOD SUPPLY
AND RESERVE CORPORATION

SEC. 16. Reorganization of the National Food Authority. - To principally
identify provinces based on their leading agricultural produce as well as ensure that
adequate supply of key food requirement can be sourced out, in the event of a natural
calamity, from other provinces by increasing its production and execute the foregoing
policy, goals and objectives, there is hereby created a body corporate known as the
National Strategic Food Reserve Corporation (NSFRC), which shall be attached to the
Department of Agriculture.

SEC. 17. Board of Directors. - The powers and functions of the NSFRC shall
be vested in a Board of Directors, which shall have the responsibility of formulating a
comprehensive supply and reserve program of the food grains, fishing and vegetable
industry.

The Board shall be composed of a Chairman, President, and three (3) Members
who shall be Filipino citizens, at least thirty-five (35) years of age, with sufficient
experience in agri-business and management, and of proven honesty, integrity and
competence. Both the Chairman and the President shall be appointed by the President
of the PI s from nominees to be recommended by the Secretary of Agriculture
within thirty (30) days from the creation of the NSFRC.

Within the same period, the Secretaries of the Agriculture, Social Welfare and
Development, and Trade and Industry shall recommend fifteen (15) nominees from
which the President of the Philippines shall choose the remaining three (3) members
of the Board: Provided That two (2) of the three (3) members shall be selected from
accredited farmers’ organizations. The first member shall serve for a term of three (3)
years, the second member for two (2) years, and the third member for one (1) year.
Subsequent vacancies in the Board shall be filled up from a list to be submitted by the
Secretaries consisting of three (3) nominees for each vacancy, from which the
President of the Philippines shall choose a replacement to serve for a term of three (3)
years.

Within thirty (30) days from the submission of the list of nominees, the
President of the Philippines shall constitute the Board. The Board shall meet at least
once a month on any date to be determined by the Chairman; Provided, That the
Chairman may convene special meetings to discuss any matter needing immediate
resolution. The Board shall be entitled to a per diem for each meeting actually
attended by them and other remuneration as may be determined by the Board in
accordance with existing policies of the government.

SEC. 18. Organization. - Within ninety (90) days from the constitution of the
Board, it shall approve the NSFRC's organizational structure, and salary and staffing
pattern. For this purpose, the salary standardization law shall be applicable, except
with respect to the authority of the Board to give performance incentives to
employees of the NSFRC; Provided, That performance incentives may only be
allowed if the NSFRC registers a profit and their yearly cost does not exceed the
equivalent of 10% of the NSFRC's net income before taxes nor 100% of the gross pay
of its employees.



The President shall have the authority to appoint, promote, transfer, assign,
reassign, remove, suspend or otherwise discipline officers and employees of the
NSFRC as may be delegated to him by the Board.

SEC. 19. Management. - The President shall direct and manage the affairs of
the NSFRC subject to the policy formulations of the Board. The President shall
receive the same salary and emoluments of a Department Secretary.

There shall be two (2) Executive Vice Presidents appointed by the Board for a
term of three (3) years who shall assist the President in the performance of his
functions. Either of the Executive Vice Presidents shall exercise the powers and
functions of the President in his absence. The Executive Vice Presidents shall receive
the same salary and emoluments of a Department Undersecretary.

The Executive Vice Presidents and Vice President shall be citizens of the
Philippines, at least thirty-five (35) years of age, of proven honesty and integrity and
of recognized managerial competence.

SEC. 20. Powers and Functions. - The NSFRC shall exercise the following,
powers and functions:

a) To undertake the duty and tariff-free importation of rice for the government
in order to maintain the appropriate volume of the Strategic Rice Reserve and
Government Rice Buffer Stock by July 1 of each year;

b) To own, lease, acquire by purchase or otherwise, hold, sell or dispose of
stocks or bonds or any interest in either or any obligation or evidence of indebtedness
of any person, partnership, or corporation;

¢) To issue debt instruments that are agri-agra eligible and guaranteed by the
national government up to a maximum amount of Five Billion Pesos
(P5,000,000,000), beyond which the approval of the President of the Philippines shall
be required;

4) To own, lease, operate or otherwise hold land, buildings, equipment, facilities
and such other properties as may be necessary to carry out its functions;

€) To establish its internal organization and fix the remuneration, emoluments,
allowances and other benefits of its officers and employee:

f) To exercise the rights and powers of a domestic corporation; and Subject to
the guidelines to be formulated by the Board, to negotiate with private or government
entities in the business of trading, marketing, importing and exporting of
commodities.

SEC. 21. Capitalization. - The NSFRC shall have a total authorized
capitalization of Fifteen Billion Pesos (Php15,000,000,000.00) consisting of One
Hundred Fifty Million (150,000,000) shares with par value of One Hundred Pesos
(P100) per share. From this amount Twelve Billion Pesos (Php12,000,000,000.00)


shall be in the form of assets from the National Food Authority, hereinafter referred to
as NFA, and Three Billion Pesos (Php3,000,000,000.00) shall be in the form of cash
to be appropriated by the national government over a period not exceeding ten (10)
years. The Department of Budget and Management (DBM) shall include annually
during the three (3) year transition period the amount of Five Hundred Million
(P500,000,000,00) in the President's Budget submitted to Congress.

SEC. 22. Assets and Liabilities. - All assets and liabilities of the NFA not
transferred to the NSFRC shall be retained and administered, disposed of and
liquidated by the NFA itself, which shall continue to exist as the NFA Board of
Liquidators (BOL). The NFA-BOL shall receive budgetary support from the national
government and be manned by personnel detailed from the NFSRC. It shall be
deemed abolished upon full disposition of assets and liquidation of liabilities of the
NFA within a period not to exceed three (3) years, after which all remaining assets
and liabilities shall be deemed transferred to the national government.

Assets pertaining to the regulatory, developmental and research functions of
the NFA shall be transferred to the Department of Agriculture.

VIII. FINAL PROVISIONS

SEC. 23. Implementing Rules and Regulations — The Secretary of Agriculture,
in collaboration with the Secretary of Trade and Industry shall promulgate such rules
and regulations as may be necessary to implement the provision of this Act within
sixty (60) days after approval of this Act.

SEC. 24. Repealing Clause — All laws, decrees or executive issuances and any
rules and regulations or any part thereof, which may be inconsistent with any of the
provisions of this Act, are hereby deemed repealed, amended or modifies accordingly.

SEC. 25. Effectivity. — This Act shall take effect fifteen (15) days after its
complete publication in two (2) newspapers of general circulation.

Approved,