Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No.7597

Introduced by Representatives Wilbert T. Lee

AN ACT STRENGTHENING LOCAL GOVERNMENT PARTICIPATION IN
AGRICULTURE DEVELOPMENT BY INSTITUTIONALIZING A MINIMUM
OF TEN PERCENT (10%) ALLOCATION FROM THEIR NATIONAL TAX
ALLOTMENT (NTA) FOR THE IMPLEMENTATION OF PROGRAMS,
ACTIVITIES AND SERVICES FOR AGRICULTURE AND FISHERIES
ADVANCEMENT AND AMENDING FOR THE PURPOSE SECTIONS 17, 106,
287, 443, 454, AND 482 (a) OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN
AS THE LOCAL GOVERNMENT CODE FOR THE OTHER PURPOSES

EXPLANATORY NOTE

Article XIII, Section 5 of the 1987 Constitution provides that “[tJhe State shall
recognize the right of farmers, farmworkers, and landowners, as well as cooperatives, and other
independent farmers’ organizations to participate in the planning, organization, and
management of the program, and shall provide support to agriculture through appropriate
technology and research, and adequate financial, production, marketing, and other support
services.”

After World War II, the Philippines stood out as the heart of Asia’s rice-growing
regions. This is one of the reasons why the International Rice Research Institute (IRRI) was
established in 1960 at Los Bafios, Laguna. We were well-known for our world-class farmers
and this kind of reputation led international students to visit the country and benchmark our
farming practices. There were even accounts that in the late 1960s to early 1980s, students from
Thailand, and Vietnam pursued their graduate studies in agriculture and agriculture-related
fields at the University of the Philippines at Los Baftos (UPLB). By the late 2000s, batches of
students from Myanmar, Cambodia and Laos attended various courses on agriculture offered
by UPLB.

IRRI eventually became one of the world’s largest non-profit agricultural centers, and
many of its innovations paved the way to prevent the Asian famine in the 1960s. In that decade,
agriculture contributed 23% of GDP.


Today, our initial advantages in agricultural research and productivity have been lost.
The agriculture sector has weakened in the last two decades. The Food and Agriculture
Organization (FAO) of the United Nations noted the significant decrease in our agricultural
productivity, high production costs, and low government support to the sector, among other
things, have led to a crisis in Philippine agriculture. Despite the Philippines’ status as a tropical
country capable of planting a great variety of crops, we have not maximized our full potential
to be an agricultural powerhouse in the global stage. Instead, the country is confronted with
longstanding problems regarding food supply and security. Moreover, after we trained
agriculture students and professionals from nearby countries, their agriculture sectors are now
far more modernized, developed, and competitive compared to ours.!

We must remember that agriculture is one of the most important sectors in our society,
not just in providing jobs and livelihood to agricultural workers, but also in ensuring that there
is food in every household in the country. If we do not prioritize our farming sector, our country
will go hungry.

Meanwhile, our fisheries sector remains to be a potent brew of helping us increase our
chances to achieve food security. The Philippine Statistics Authority (PSA) reported that for
2022, the total production grew to 4,339.89 thousand metric tons or by 2.2 percent, from the
previous year’s output of 4,248.26 thousand metric tons. Increases in production were noted in
marine municipal fisheries and aquaculture, while commercial and inland municipal fisheries
reported setbacks during the year. However, compared to our economy as a whole, the fisheries
sector contributed little: in 2022, just 12% to total agricultural output and 1% of GDP.

It must be emphasized that the agriculture and fisheries sector must get its fair share of
public funding to attain our country’s food security and redeem ourselves as an agriculture
powerhouse, at par with other ASEAN countries. We need to also ensure that our local food
production can keep up with the immense population growth.

Agriculture and fisheries development is a task too big for the national government to
address alone. But Local Government Units (LGUs) can play a crucial role in transforming
both of these sectors. In the Supreme Court (SC) En Bane Resolution on the case Mandanas-
Garcia Case promulgated last 10 April 2019, the SC declared as unconstitutional the phrase
“internal revenue” appearing in pertinent sections of RA No. 7160, and ordered the Secretaries
of Finance and Budget and Management and Commissioners of Internal Revenue and Customs,
and the National Treasurer to include all collections of national taxes in the computation of the
base of the just share of the LGUs according to the ratio provided in the LGC starting FY 2022.
Asa result, LGUs ought to have a higher budget that can directly provide interventions to their
local needs. In this new fiscal regime, there is a strong case to be made for greater prioritization
and just share of the agricultural sector for its growth and development.

Taking into consideration that the share of LGUs will be automatically and directly
released to the provincial, city, municipal or barangay treasurer without need for any further
action, and shall not be subject to any lien or holdback that may be imposed by the National
Government, this measure shall ensure that the LGUs will be mandated to effectively
participate in our serious pursuit of agricultural development and include it as their priority
with the necessary funding.

' Dy, Rolando (11 March 2019) A tale of two agricultures: The Philippines and Vietnam. Retrieved last 12
March 2023 from: https://www.bworldonline.com/editors-picks/2019/03/11/218985/a-tale-of-two-agricultures-
the-philippines-and-vietnam/



In view of the foregoing, the approval of this bil

is camestly sought.

HONJMILBERT T. LEE.
resentative
A@RI PARTYLIST


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS

First Regular Session

7897

HOUSE BILL NO.

Introduced by Representatives Wilbert T. Lee

AN ACT STRENGTHENING LOCAL GOVERNMENT PARTICIPATION IN
AGRICULTURE DEVELOPMENT BY INSTITUTIONALIZING A MINIMUM OF
TEN PERCENT (10%) ALLOCATION FROM THEIR NATIONAL TAX
ALLOTMENT (NTA) FOR THE IMPLEMENTATION OF PROGRAMS,
ACTIVITIES AND SERVICES FOR AGRICULTURE AND FISHERIES
ADVANCEMENT AND AMENDING FOR THE PURPOSE SECTIONS 17, 106, 287,
443, 454, AND 482 (a) OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS
THE LOCAL GOVERNMENT CODE FOR THE OTHER PURPOSES

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

Chapter 1
General Provisions

Section 1. Title. — This Act shall be known as the “Local Agri-Fisheries Development
Act of 2023.”

See. 2. Declaration of Policy. — It is hereby declared the policy of the State to promote,
localize and accelerate the development and modernization of the Philippine agriculture and
fisheries sector by providing opportunities to increase their productivity.

‘The State shall promote cooperation and participation of the local government units and
their stakeholders in defining, harnessing, and rationalizing the use of available resources, for
the advancement of food security, market access of products, application of good farm and
fishing practices, modern technology, and profitable agribusiness opportunities towards a
sustainable countryside development.

‘A healthy and dynamic agricultural sector is an important foundation of rural
development. Rural livelihoods are enhanced through the effective participation of rural people


and rural communities in the management of their social, economic, and environmental
objectives by applying the bottom-up approach and helping them access government resources.

There shall be a comprehensive program on agriculture development in all local
government units which have at least ten (10) percent agriculture or/ and fisheries income
source. This function shall form part of the basic, regular, and direct services of the LGU to its
inhabitants.

Agriculture development is economic development and is associated with opportunities
for rural folks to move up the economic ladder.

See. 3. Scope and Coverage. - This shall be implemented in all Local Government Units
in consultation and partnership with their stakeholders.

See. 4. Local Agriculture Development Programs(LADP). LADPs shall focus on the
areas identified as factors contributing to the competitiveness of the agriculture industry. These
include the availability and production of seeds, livestock, fingerlings, and other farm and
fishery inputs, mechanization and post-harvest equipment and facilities, irrigation system
access and maintenance, marketing of products, credit, guarantee, and agriculture insurance,
knowledge of better farming systems, and knowledge of organic farming, among others.
Toward this aim, the Local Government Units (Municipalities, Cities, and Provinces) shall
undertake the following:

1, Enhance, strengthen and promote agriculture and fisheries as a major livelihood in the
locality;

2. Allocate a minimum of ten percent (10%) of their annual development fund to
agriculture and fisheries development;

3. Create a Committee on Agriculture and Fisheries Development in the Local
Government Legislative Council to address legislation in the said legislative body
related to all agriculture and fisheries development and protection matters;

4. Create the position of City and Municipal Agriculturist in the LGU regular plantilla;

5. Establish an agriculture and fisheries office and strengthen the capacities of its
personnel who shall see to the implementation of the agriculture and fisheries programs
and projects;

6. Empower the Local Chief Executives to deliver agriculture and fisheries programs;

7. Strengthen LGU linkages and partnerships among various partners in national
government working for agriculture development;

8. Conserve, protect, and manage the agriculture and aquatic environment using
sustainable agricultural and aquaculture practices;

9. Develop and strengthen the capacities and the technical skills of farmers and fisherfolks
throughout the production, harvesting, processing, storage, and transport stages in the
value chain including simple business management and profitabil

10, Provide appropriate infrastructure and equipment for post-harvest technology;

11. Promote easy access to financial institutions of agriculture stakeholders;

12. Monitor and assess the implementation of the agriculture and fisheries development
program and evaluate its impact on the citizenry.



CaVaNVEUNne

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defined as follows:

a.

©

f.

Chapter II
Definition of Terms

Sec. 5. Definition of Terms. For purposes of this Act, the following terms shall be

“Capacity” — refers to a combination of all strengths and resources available within the
‘community, society, or organization. Capacity may include infrastructure, institution,
human knowledge, skills, and collective attributes such as social relationships,
leadership, and management. It also means capability

“Climate Change” - refers to a change in climate that can be identified by changes in
the mean and/or variability of its properties and that persist for an extended period
typically decades or longer, whether due to natural variability or as a result of human
activity.

“Food Safety” - refers to the conditions and practices that preserve the quality of food
to prevent contamination and food-borne illnesses.

“Food Security” — refers to building local capacity, increasing productivity, and
improving markets and trade.

“Good Agricultural Practices” (GAP) ~ refers to the approach which aims at applying
available knowledge to addressing environmental, economic, and social sustainability
dimensions for on-farm production and post-production processes, resulting in safe and
quality food and non-food agricultural products.

“Integrated Pest Management” (IPM) ~ refers to an ecologically-based approach to pest
(animal and weed) control that utilizes a multi-disciplinary knowledge of crop/pest
relationships, the establishment of acceptable economic thresholds for pest populations
and constant field monitoring for potential problems. Management may include such
practices as “the use of resistant varieties; crop rotation; cultural practices; optimal use
of biological control organisms; certified seed; protective seed treatments; disease-free
transplants or rootstock; timeliness of crop cultivation; improved timing of pesticide
applications; and removal or ‘plow down’ of infested plant material.

. “Land Use Planning” ~ refers to the process undertaken by public authorities to identify,

evaluate and decide on different options for the use of land, including consideration of
long-term economic, social, and environmental objectives and the implications for
different communities and interest groups, and the subsequent formulation and
promulgation of plans that describe the permitted or acceptable uses.

“Local Government Unit” - refers to a province, ality in the country.
“Nutrient management” — refers to managing the amount, source, placement, form, and
timing of the application of nutrients and soil amendments to ensure adequate soil
fertility for plant production and to minimize the potential for environmental
degradation, particularly water quality impairment,

“Sustainable Agriculture” — refers to an integrated system of plant and animal
production practices having a site-specific application that will in the long term satisfy
human food needs, enhance environmental quality and natural resource base upon
which the agriculture economy depends, sustain the economic viability of farm



operations, efficient use of on-farm resources to food, feed, and other plant and animal
production that balances environmental soundness, social equity, and economic
viability among all sectors of the public, including international and intergeneration of
people.

Chapter III
Institutional Mechanism

See. 6. Role of the DA and other Government Offices. ~ (a) The Department of
Agriculture shall continue to be responsible for the promotion of agricultural development by
providing the policy framework, public investments, and support services including
infrastructure support, research, development, and extension, including agri-business and
market development services, regulation and planning

It shall use a bottom-up self-reliant farm system approach that will emphasize social
justice, equity, productivity, and sustainability in the use of agricultural resources, The DA
shall adopt the convergence framework that recognizes that “one size does not fit all” - that
different rural communities have different opportunities, needs, and aspirations.

(b) State Agencies and Instrumentalities and the Creation of the Regional Agricultural
Development Council. - Through convergence, the DA and the LGU shall maximize the
partnership in development to reduce cost in the delivery of services and maximize knowledge
on programs, funding and investment access. The Field Regional Offices of the Department
for Agriculture (DA-RFU), the Regional Directors of the Departments of Interior and Local
Government (DILG), the Department of Agrarian Reform (DAR), the Department of Science
and Technology (DOST), the National Economic Development Authority (NEDA),
Department of Public Works and Highways (DPWH), Department of Tourism (DOT),
Regional Integrated Agriculture Research Centers (RIARC), Regional Fisheries Research
Centers (RFRC), Regional Director of the Agricultural Training Institute (Regional Director -
ATI), Regional Head of the Philippine Association of State Colleges and Universities
(Regional Head of PASUC), Head of the Regional Agricultural and Fisheries Council,
Provincial Agriculture and Fisheries Council Head, Office of the Provincial Agriculturists
(OPA) and the Provincial Governors, all City Mayors and the Municipal Mayors shall
constitute the Regional Agricultural Development Council (RADC).

b.1, The RADC shall assist in the preparation, monitoring and evaluation of the
short- and long-term Local Government Unit's development plans and
investment programs.

The offices of the various regional agencies of the government shall, upon
request of the local chief executives, provide such technical support as may be
required in the discharge of their functions.

b.2. The Council shall be headed by the DA Regional Executive Director. The
Council shall meet as often as necessary but not less than once a semester.

b.3. Funds necessary for the RADC operations, project monitoring and
evaluation, and implementation of special projects shall be included in the


General Appropriations Act of the DA, subject to the usual auditing and
accounting rules and regulations.

(c) The Governors through the Office of the Provincial Agriculturist shall activate the
provincial agricultural council which shall monitor the formulation, development, and
implementation of the cities/municipality’s agriculture development plans, programs, and
projects within their jurisdictions.

(d) The Municipal and Component City Mayors shall activate their agriculture sectoral
council which shall formulate and implement a three-year agriculture development plan with
measurable and time bounded annual goals, programs, activities and projects. The Local Chief
Executive (LCE) shall see to timeliness, transparency, and accountability in the delivery of
technical know-how, goods, and services to farmers and fisherfolks. The agricuiture
development plan of each Local Government Unit shall be submitted to the Governor through
the Provincial Development Council. An annual report containing the accomplishment and
impact of the programs shall be submitted to the Provincial Development Council on or before
March 31, of the succeeding year.

(e) The Municipal and City Planning Office shall be the Secretariat of their respective
Agricultural Sectoral Council. The members of the council shall be the following - The
barangay chairmen of the agricultural barangays, the Chair of the Municipal/City Sanggunian
Bayan in charge of Agriculture and Fisheries, three (3) representatives of the local farmer's
organization, the head of the local fisheries organization, an NGO in agriculture operating in
the Muni City, a representative of a local agricultural development cooperative, the
Local Chief Executive, the DA-Regional Executive Director or his representative,

See. 7. Incentives and Awards. - There shall be an institutionalized incentives and award
system which shall be administered by the council under such rules and regulations as may be
promulgated by the Department of Agriculture together with the Department of Interior and
Local Government to deserving LGUs for their outstanding and model performance in
promoting agriculture development and implementing effective agricultural practices.

Chapter IV
‘Amendatory Prov

ns

Sec. 8. Amendatory Provisions. Section 106 of Republic Act No. 7160, otherwise known
as the Local Government Code of 1991, is hereby amended to read as follows:

1. Section 17 of Republic Act No. 7160, otherwise known as the Local Government Code
of 1991, is hereby amended to read as follows:

“Section 17. Basic Services and Facilities. -

(a) Local government units shall endeavor to be self-reliant and shall continue
exercising the powers and discharging the duties and functions currently vested
upon them. They shall also discharge the functions and responsibilities of
national agencies and offices devolved to them pursuant to this Code. Local
government units shall likewise exercise such other powers and discharge such
other functions and responsibilities as are necessary, appropriate, or incidental



to effi

it and effective provision of the basic services and facilities
enumerated herein.

1

2

3

4 THE LOCAL GOVERNMENTS SHOULD STRIVE TO CAPACITATE
5 THEIR CONSTITUENTS AND THEIR INSTITUTIONS TO BECOME
6 FOOD SECURE BY: TRAINING THEIR SMALL FARMERS AND
7 FISHERFOLKS AND THE MICRO AND SMALL BUSINESSES IN
8 AGRICULTURE BE IT IN PRODUCTION, PROCESSING, TRADE

9 AND PROMOTION; AND MINIMIZING THEIR RISKS AND LOSSES
10 AND ‘ABLISHING CLIMATE CHANGE ADAPTATION
n STRATEGIES, INCLUDING PEST MANAGEMENT AND.
2 PROMOTING FOOD SAFETY.”

13

14 (b) Such basic services and facilities include, but are not limited to, the following:
15 XXX

16

v7 2. Section 106 of Republic Act No. 7160, otherwise known as the Local Government
18 Code of 1991, is hereby amended to read as follows:

19

20 “SECTION 106. Local Development Councils. ~ (a) Each local government
2 unit shall have a comprehensive multi-sectoral development plan to be initiated
22 by its development council and approved by its sanggunian, For this purpose,
23 the development council at the provincial, city, municipal, or barangay level,
24 shall assist the corresponding sanggunian in setting the direction of economic
25 and social development, and coordinating development efforts within its
26 territorial jurisdiction. TOWARD THIS END, AN AGRICULTURE AND
27 FISHERIES DEVELOPMENT COUNCIL SHALL BE CONSTITUTED
28 IN THE LOCAL GOVERNMENT WHERE AGRICULTURE AND/OR
29 FISHERIES IS A SIGNIFICANT INDUSTRY OR LIVELIHOOD.

30

31 SUCH LOCAL GOVERNMENT UNIT IS REQUIRED TO DEVELOP A.
32 THREE (3) YEAR STRATEGIC PLAN FOR AGRICULTURE AND.
33 FISHERIES DEVELOPMENT BASED ON THE FRAMEWORK AND
34 PRINCIPLES PROVIDED BY THE DEPARTMENT OF
35 AGRICULTURE (DA) AND THE NATIONAL ECONOMIC
36 DEVELOPMENT AUTHORITY (NEDA).

37

38 THE LOCAL CHIEF EXECUTIVE SHALL CONVENE THEIR
39 RESPECTIVE LOCAL DEVELOPMENT COUNCILS WITHIN
40 THIRTY (30) DAYS FROM THEIR ASSUMPTION TO OFFICE.

41

42 THE RESPECTIVE LEAGUES OF PROVINCES, CITIES,
43 MUNICIPALITIES AND BARANGAYS SHALL ACTIVELY
44 PARTICIPATE IN THE COMPLIANCE BY THEIR RESPECTIVE
45 LOCAL GOVERNMENT UNITS WITH SECTIONS 107 AND 110
46 HEREOF”

47

48

49


3. Section 287 of Republic Act No. 7160, otherwise known as the Local Government
Code of 1991, is hereby amended to read as follows:

“SECTION 287. Local Development Projects. - Each local government unit shall
appropriate in its annual budget no less than twenty percent (20%) of its annual internal
revenue NATIONAL TAX allotment for development projects. PROVIDED THAT,
NOT LESS THAN TEN PERCENT (10%) OF THIS AMOUNT SHALL BE
USED FOR THE IMPLEMENTATION OF PROGRAMS, PROJECTS,
ACTIVITIES, AND SERVICES FOR AGRICULTURE AND/OR FISHERIES
DEVELOPMENT. Copies of the development plans of local government units shall
be furnished to the Department of Interior and Local Government.”

4, Section 443 of Republic Act No. 7160, otherwise known as the Local Government
Code of 1991, is hereby amended to read as follows:

“SECTION 443. Officials of the Municipal Government, ~ (a) There shall be in each

municipality a municipal mayor, a municipal vice-mayor, sangguniang bayan
members, a secretary to the sangguniang bayan, a municipal treasurer, a municipal
assessor, a municipal accountant, a municipal budget officer, a municipal planning and
development coordinator, a municipal engineer/building official, a municipal health
officer and a municipal civil registrar.
(b) In addition, thereto, the mayor may appoint a municipal administrator, a municipal
legal officer, a municipal agriculturist, a municipal environment and natural resources
officer, a municipal social welfare and development officer, a municipal architect, and
a municipal information officer, PROVIDED THAT AT LEAST TWENTY (20)
PERCENT OF THE LIVELIHOOD OF A MUNICIPALITY IS ENGAGED IN
AGRICULTURE AND/OR FISHERIES BASED ON THE TOTAL
EMPLOYMENT DATA REPORTED BY THE PSA OR OTHER RELEVANT
GOVERNMENT AGENCIES, THE APPOINTMENT OF A MUNICIPAL
AGRICULTURIST SHALL BE MANDATORY.

5. Section 454 of Republic Act No. 7160, otherwise known as the Local Government
Code of 1991, is hereby amended to read as follows:

“SECTION 454. Officials of the City Government. — (a) There shalll be in each city a
mayor, a vice-mayor, sangguniang panlungsod members, a secretary to the
sangguniang panlungsod, a city treasurer, a city assessor, a city accountant, a city
budget officer, a city planning and development coordinator, a city engineer, a city
health officer, a city civil registrar, a city administrator, a city legal officer, a city
veterinarian, AND/OR A CITY AGRICULTURIST, a city social welfare and
development officer, and a city general services officer.

(b) In addition, thereto, the city mayor may appoint a city architect, a city information
officer, a city agriculturist, a city population officer, a city environment and natural
resources officer, and a city cooperatives officer. The appointment of a city population
officer shall be optional in the city: Provided, however, that cities which have existing
population offices shall continue to maintain such offices for a period of five (5) years
from the date of the effectivity of this Code, after which said offices shall become
optional.


6. Section 482 (a) of Republic Act No. 7160, otherwise known as the Local Government
Code of 1991, is hereby amended to read as follows:

“SECTION 482. Qualifications, Powers, and Duties. — (a) No person shall be appointed
agriculturist unless he is a citizen of the Philippines, a resident of the local government
unit concerned, of good moral character, a holder of a college degree in agriculture or
any related course from a recognized college or university and a first-grade civil service
eligible or its equivalent. He must have practiced his profession in agriculture or
acquired experience in a related field for at least five (5) years in the case of the
provincial or city agriculturist, and three (3) years in the case of the municipal
agriculturist.

The position of an agriculturist shall be mandatory for the provincial government and
optional for the city and municipal governments, PROVIDED THAT AT LEAST
TWENTY (20) PERCENT OF THE LIVELIHOOD OF A MUNICIPALITY IS
ENGAGED IN AGRICULTURE AND/OR FISHERIES BASED ON THE
TOTAL EMPLOYMENT DATA REPORTED BY THE PSA OR OTHER
RELEVANT GOVERNMENT AGENCIES, THE APPOINTMENT OF A
MUNICIPAL AGRICULTURIST SHALL BE MANDATORY.

See. 9. Appropriation. - The initial funding requirements for the convening of the
various LGUs to implement this Act at the provincial, municipal, and city shall be charged
against the current appropriations of the LGU. Thereafter, such sums as may be necessary to
the implementation of this Act shall be included in the yearly budget of the LGU from their
National Tax Allotment.

Sec. 10. Implementing Rules and Regulations. - At the instance of the DILG, in
consultation with the DA and the Representative from the League of Provinces, League of
Cities, and League of Municipalities together with a farmer and fisherfolk representative from
each LGU classification, shall promulgate the implementing rules and regulations of this Act
within ninety (90) days from the effectivity of this Act.

See. 11. Non-impairment Clause. - Nothing in this Act shall be construed as to diminish,
impair, or repeal the prohibited acts under existing laws, presidential decrees, executive orders,
ordinances, rules and regulations, and other issuances.

See. 12. Separability Clause. - If for any reason, any section or provision of this Act
shall be declared to be unconstitutional or invalid, the other sections or provisions not affected
thereby shall remain in full force and effect.

Sec. 13. Repealing Clause. - All laws, presidential decrees, executive orders,
ordinances, rules and regulations, and other issuances or parts thereof which are inconsistent
with this Act, are hereby repealed or modified accordingly.

Sec. 14. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation in the country.

Approved,