SEVENTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
First Regular Session
•( Mjf fofcrftnr^
'16 DEC 13 P5 ;37
SENATE
S enate Bill No. 1281
RECEIVED BY;
(In Substitution of Senate Bill No. 50)
Prepared and subm itted jointly by the Committees on Agriculture and Food, and 
Ways and M eans, with S en ato r P angilinan as author thereof
AN ACT
INSTITUTING THE FARMERS AND FISHERFOLK ENTERPRISE DEVELOPMENT 
PROGRAM OF THE DEPARTMENT OF AGRICULTURE AND FOR OTHER 
PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. S h o rt Title, -  This Act shall be known as the “Sagip Saka Act of
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2 0 1 6 ” .
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SEC. 2. D e cla ra tio n  o f Policy. -  It is the declared policy of the State to
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achieve sustainable m odern agriculture and food security by transform ing
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agricultural and fishing com m unities to reach their full potential, improving
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farm ers and fishers incom es and quality of life, and bridging gaps through public-
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private partnerships.
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Towards these ends, the State recognizes the essential role of the private
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sector in prom oting and supporting enterprise development in the agriculture and
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fisheries sectors, opening up of opportunities and m arkets for agricultural and
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fishery 
products 
in 
the 
dom estic 
and 
world 
m arkets, 
and 
developing
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entrepreneurship am ong our farm ers and fisherfolk.
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In pursuance of this policy, the State shall strengthen the farm ers and
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fisherfolk enterprise developm ent program  of government by establishing a
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com prehensive and holistic approach in the form ulation, coordination and
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im plem entation of enterprise development initiatives, consolidate the roles of
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different governm ent agencies involved in farm ers and fisherfolk enterprise
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development, intensify the building of entrepreneurship culture am ong farm ers and


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fisherfolk, and provide incentives to private entities th at support the farm ers and
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fisherfolk enterprise development initiatives of the government.
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SEC. 3. The F arm ers a n d  F ish erfo lk  E n te rp rise  D evelopm ent P rogram . —
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There is hereby established the Farm ers and Fisherfolk Enterprise Development
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Program, herein referred to as the Program, which shall refer to the comprehensive
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set of objectives, targets, and holistic approach and assistance in prom oting the
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establishm ent of enterprises involving agricultural and fishery products. It shall be
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integrated 
and 
be 
m ade 
consistent 
with 
the 
Agriculture 
and 
Fisheries
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M odernization Plan, and the Micro, Small and Medium Enterprises Development
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Plan.
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In the identification and prioritization of agricultural and fishery products
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th at will be supported, the Program shall m ake use of science-based methodologies,
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such as the value chain analysis.
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The forms of assistance to be provided under the Program shall include:
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1) Im provement of production and productivity, including agricultural
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extension services, skills development, provision of production inputs, equipm ent
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and facilities/infrastructure for production and post-production activities;
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2) Im provement of producers’ and enterprises’ access to financing in the
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form of credit grants as well as crop insurance;
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3) Provision of access to improved technologies through research and
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development; and
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4) Provision of business support and development services, particularly in
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the areas of access to m arkets, m arketing, and networking.
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SEX3. 4. C overage o f th e  P rogram . -  The Program shall cover the following
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areas:
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a. Agricultural and fisheries production, including processing of fisheries
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and agri-based products and farm inputs;
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b. Acquisition of work anim als, farm and fisheiy equipm ent and m achinery;
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c. Acquisition of seeds, fertilizer, poultry, livestock, feeds and other similar
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items:


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d. Procurem ent of agricultural and fisheries products for storage, trading,
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processing and distribution;
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e. C onstruction, 
acquisition 
and 
repair 
of facilities 
for 
production,
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processing, storage, transportation, com m unication, m arketing and such other
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facilities in support of agriculture and fisheries;
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f. 
Working capital for agriculture and fisheries graduates to enable them  to
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engage in agriculture and fisheries related economic activities;
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g. Agribusiness activities which support soil and w ater conservation and
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ecology-enhancing activities;
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h. Working capital for long gestating projects; and
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i. 
Credit guarantees on uncollateralized loans to farm ers and fisherfolk.
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The Farm ers and Fisherfolk Enterprise Development Council, created under
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Section 8 of this Act, may include other areas of intervention in order to expand and
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support enterprise developm ent in the agriculture and fisheries sector.
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SEC. 5. B en eficiaries o f th e  P rogram . -  The possible proponent groups or
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beneficiaries of the Program are the following:
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a. Existing producer groups with m em bers producing commodities which
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are included in the priority commodity value chains and have potential to increase
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their m arketable surplus;
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b. Farm er and fisher groups which have potential to produce m arketable
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surplus and dem onstrate willingness to voluntarily adopt clustering with other
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groups and forge contracts or formal m arketing agreem ents with buyers or private
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interm ediaries;
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c. Producer groups or cluster of growers th at are either operational a n d /o r
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show a willingness to undergo capacity building on enterprise development and
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m anagem ent; and
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d. Micro, small and m edium  scale processors, consolidators, exporters, and
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other enterprises, who are willing to assist producer groups in vertical clustering or
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joint business planning, and forge contracts or formal m arketing agreem ents with
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such producer groups. Joint business planning and investm ents of the producer
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groups and agro-processors will be supported if it will result in increased
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engagem ent of the producer groups in value adding activities.
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Farm ers and fishers who are not m em bers of any organization operating in
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the priority commodity value chain m ust join the proponent groups for them  to be
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eligible either as a m em ber of the proponent group or as supplier to the enterprise.
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SEC. 6. Im plem enting A gency a n d  P a rtn e r A gencies. -  The D epartm ent of
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Agriculture (DA) shall be the im plem enting agency of the Program. It shall tap the
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assistance, expertise and resources of the following agencies, such as, but not
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limited to, the Philippine Coconut Authority, the National Dairy Authority, the
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B ureau of Soils and W ater M anagem ent, the Philippine Center for Post-Harvest
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Development and M echanization, B ureau of Fisheries and Aquatic Resources,
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Agricultural Training Institute, Agricultural Credit and Policy Council, and the
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B ureau of Agricultural Research.
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The DA shall likewise collaborate and secure the technical support and
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assistance of other departm ents and their attached agencies and corporations to
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support enterprise developm ent in the priority commodity value chain, such as: the
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D epartm ent of Agrarian Reform, the D epartm ent of Environm ent and N atural
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Resources, the D epartm ent of Science and Technology, the D epartm ent of Trade
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and Industry, and the D epartm ent of the Interior and Local Government.
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SEC. 7. P riv ate  S e cto r P a rtn e rsh ip . -  Partnerships or alliances between
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farm er and fishers groups and the private sector may be formed to improve m arket
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access of producer groups.
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The following criteria shall be considered in the selection of private sector
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partners:
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a) Committed to enter into m arketing contract or buy-back agreem ent with
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the producers group;
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b) Will undertake technology transfer on the provided goods an d /o r services;
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c) Financial and organizational capability to undertake the proposed
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enterprise; and


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d) Established actual experience in undertaking or im plem enting the 
proposed enterprise.
Private sector partners may also provide or donate equipm ent, m achineries, 
and other forms of assistance to farm ers and fisherfolk engaging in enterprise 
development.
The DA shall issue the guidelines and impose the qualification requirem ents 
in recognizing private sector partners of the Program.
SEC. 8. C reatio n  o f th e  F a rm e rs a n d  F ish erfo lk  E n te rp rise  D evelopm ent 
CounciL -  To oversee the proper im plem entation of the Program, the Farm ers and
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Fisherfolk Enterprise Development Council is hereby created. It shall be composed
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of: (a) the Secretary of DA, or his duly authorized representative who is at least an
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U ndersecretary, who shall be the chair, (b) a representative of the D epartm ent of
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Trade and Industiy (DTI), who shall likewise at least be an Undersecretary; (3) a
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representative of the D epartm ent of the Interior and Lxjcal Government (DILG); (4) a
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representative of the D epartm ent of Finance (DOF); (5) Cooperative Development
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Authority (CDA); (6) a representative of a national organization of farm ers
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cooperatives or associations; (7) a representative of a national organization of
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fisherfolk cooperatives or associations; and (8) two (2) representatives from the
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agriculture, food, restau ran t and business sectors.
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SEC. 
9. 
L ocal C ouncils f o r  F a rm e rs 
a n d  F ish erfo lk  E n te rp rise
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D evelopm ent. -  The Agricultural and Fishery Councils (AFCs) of the Philippine
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Council for Agriculture and Fisheries shall provide the m echanism s for private
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sector participation in the developm ent processes at the regional, provincial, and
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city/m unicipal levels.
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SEC. 
10. 
C reatio n  
o f 
th e  
F a rm e r 
a n d  
F ish erfo lk  
E n tre p rise
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D evelopm ent F und. -  To support the im plem entation of the Program, there is
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hereby created a Farm er and Fisherfolk Enterprise Development Fund, to be funded
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through annual general appropriations, grants from m ultilateral and bilateral
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agencies, and donations from the private sector.


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The Development Fund shall be used to prom ote business opportunities
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available in the agriculture and fisheries sector, and to fund projects in areas
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identified in Section 4 of this Act.
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In order to ensure a holistic approach in supporting projects in identified
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priority value cash, the D epartm ent shall, in addition to the Development Fund, tap
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resources under the m anagem ent of its attached agencies and commodity
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developm ent program s, and require counterpart funding from partner local
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government u nits and farm ers and fisherfolk organizations and enterprises in the
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form of cash, land, buildings, labor, or m achineries and equipm ent. Releases from
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the Development Fund shall be considered as a project grant.
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SEC. 11. F a rm e rs a n d  F ish erfo lk  E n te rp rise  D evelopm ent In fo rm atio n
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System . -  The D epartm ent of Agriculture, through the Agribusiness and M arketing
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A ssistance 
Service, 
shall 
m aintain 
a 
Farm ers 
and 
Fisherfolk 
Enterprise
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Development Information System to assist governm ent in form ulating plans and
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program s on enterprise development, and to enable producer groups, the private
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sector, local government units, and potential donors to respond to the needs of the
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local and world m arkets and in generating resources for further enterprise
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development. The inform ation system  shall contain a list of possible and
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im plem ented program s and projects; a registry of agricultural and fisheries
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enterprises, and private com panies engaging these enterprises or have expressed
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interest in participating in the Program, and other inform ation th at may be
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identified by the D epartm ent or by the Council.
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SEC. 12. D irect P u rc h a se  by N a tio n al a n d  L ocal G overnm ent A gencies.
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-  To promote and support farm ers and fisherfolk enterprise development, national
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and local governm ent agencies are hereby m andated to directly purchase
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agricultural 
and 
flsheiy 
products 
from 
accredited 
farm ers 
and 
fisherfolk
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cooperatives and enterprises: Provided, That, said agricultural and fishery products
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are necessary in the perform ance of their respective m andates.
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For purposes of this Act, the procurem ent by national and local government
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agencies of said agricultural and fishery products shall be exempt from the
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application 
of the 
bidding process 
prescribed under 
relevant 
government 
procurem ent laws: Provided, That, said agencies shall undergo a negotiated 
procurem ent under the applicable guidelines of the Government Procurem ent Policy 
Board.
SEC. 13. T ax In cen tiv es a n d  E xem ptions. -  The provisions of any general 
or special law to the contrary notv^dthstanding:
a. Gifts and donations of real and personal properties shall be exempt from 
donor’s tax and the sam e shall be considered as allowable deductions from the 
gross income of the donor, in accordance with the provisions of the National 
Internal Revenue Code of 1997, as am ended: Provided, That, the allowable 
deduction shall be equivalent to One H undred Fifty percent (150%) of the value of 
such donation.
The valuation of a donation other than money shall be based on the 
acquisition cost of the property and shall take into consideration its depreciated 
value, if applicable.
b. 
LGUs shall identify local taxes th at may be waived or reduced and offer 
them  as incentives to organic input production and utilization;
c. The Land B ank of the Philippines shall provide preferential rates and 
special window to accredited farm ers and fisherfolk enterprises; and
d. Exem ptions from income tax may be provided for income arising from the 
operations of the enterprise, as provided under Republic Act No. 9178, otherwise 
known as the “Barangay M icro-Business E nterprises.”
SEC. 14. Im plem enting R ules a n d  R eg u latio n s. -  W ithin sixty (60) days 
from the date of effectivity of this Act, the D epartm ent of Agriculture (DA), in 
consultation with the D epartm ent of Trade and Industry (DTI), and the D epartm ent 
of Finance, shall form ulate the rules and regulations for the proper im plem entation 
of this Act.
SEC. 15. S e p a ra b ility  C lause. -  If any provision of this Act is declared 
invalid or unconstitutional, the other provisions not affected by such declaration 
shall rem ain in full force and effect.


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SEC. 16. 
R epealing C lause. -  All laws, executive and adm inistrative 
orders, rules and regulations inconsistent with the foregoing provisions are hereby 
repealed or modified accordingly.
SEC. 17. 
E ffectivity C lause. -  This Act shall take effect after fifteen (15) 
days from its publication in the Official Gazette or in two (2) new spapers of general 
circulation.
Approved,