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

TWENTIETH CONGRESS
First Regular Session

House BillNo.__ 1088
Introduced by Hon. Faustino Michael T. Dy Il

EXPLANATORY NOTE,

Everyone goes through a time of need; perhaps one of the saddest tales is
of the farmer who pawns his land for much less than what it is worth, in order to
meet his family's needs.

The humble farmer does this at the risk of losing his prized possession to pay
for the cost of his children’s schooling, sudden illness in the family, etc. It is rare that
he will do so to pay for something he would consider a mere luxury.

The image of a farmer begging for help from usurious lenders is a familiar
one, and supported by studies. For instance, the Congressional Policy and Budget
Research Department, in its published paper, “Uplifting the Life of Every Filipino
through Enhanced Productivity and Social Equity,” stated that about 39% of small
farmers and fisherfolk borrowers did not have access to formal credit due to lack of
acceptable collateral and limited information about loan products. Where/who would
these people turn to in their times of need?

This bill aims to eliminate this sad picture from memory.

Since private banks loathe the idea of losing potential earnings, and thus
close their doors to customers with limited resources for collateral, it is incumbent
upon the government to open other avenues that will help respond to their situation.

The government should look upon this effort as akin to an investment, and
just one of the ways it accomplishes its Constitutional mandate of serving the people
by promoting social justice in all phases of national development.

Hence, it is exhorted that the government allocates resources to enable
farmers to obtain loans during their usual times of necessity: periods of enrollment,
Christmas, etc.; and times of sudden need: when a loved one dies, is hospitalized,
etc. It should be the refuge that never fails its people when the storms come.

The loan facility shall enable the farmer to fully pay his obligation by allowing
repayments to be made after every cropping season rather than monthly or other
usual frequencies.


Through this measure, it is hoped that concrete, measurable changes in our
farmers’ lives may become apparent and felt. And with prayers that it is not yet too
late for most of those for whom this measure is meant.

This bill was first filed by this representation in the 18” Congress. In view of
this representation’s burning desire to correct the neglect of this sector and restore
their dignity, immediate approval of this bill is earnestly sought.

ae

FAUSTINO MICHAEL T. DY Ill
5 District, Isabela


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

TWENTIETH CONGRESS
First Regular Session

House BillNo.__ 1088 ___

INTRODUCED BY REP. FAUSTINO MICHAEL T. DY IIT
AN ACT
MANDATING THE TIMELY PROVISION OF LOANS TO FARMERS, APPROPRIATING
FUNDS THEREFOR AND FOR OTHER PURPOSES

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

SECTION 1. Title. - This Act shall be known as “Farmers’ Refuge Act.”

SECTION 2. Declaration of Policy. — Article II, Sec. 10 of the 1987 Constitution
states, “The State shall promote social justice in all phases of national development.”

Section 9 of the Constitution states that it shall also “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 all.” In support
of these policies, the State further shall ensure that the State shall make available loans
to our farmers when they need it.

SECTION 3. The following agencies are tasked with the following duties and

responsibilities:

a. Department of Finance — to determine the usual needs, and amounts of loans
that may be needed and applied for by our farmers, and the approximate
timings during which such needs may arise

b. Departments of Agriculture, and Agrarian Reform — to supply data and
information regarding our farmers that may be required by other agencies
involved in this Act

c. Landbank — to administer the loans to farmers, and ensure the availability and
sufficiency of funds

SECTION 4. Loan and Repayment Scheme. — The government, through the
Landbank of the Philippines, shall anticipate loan applications and make sure that funds
are available therefor. Repayment shall be made after every cropping, and interest shall
not exceed six per cent (6%) per annum. The loans shall be available in variable tenors.
An applicant may apply for a second loan even if the first is not yet fully paid.

SECTION 5. Reportorial Requirements. - The Department of Finance and/or
Landbank shall submit an annual report to the House of Representatives Committee on


Agriculture and Food on the relevant information pertaining to the accomplishment of
the purposes of this Act.

SECTION 5. Appropriation. — An initial funding of PhP 500,000,000 shall be
allocated for this purpose. Subsequent requirements shall be determined by the DoF and
shall be included in its annual budget.

SECTION 6. Implementing Rules and Regulations. - The DoF, as lead, in
collaboration with the DA and DAR, shall formulate the rules and regulations of this Act
within ninety (90) days of its effectivity.

SECTION 7. Penal Provision. — Any person, not a government official or employee,
who violates any provision of this Act shall be punished with imprisonment of one (1)
year and/or a fine not exceeding PhP 100,000.00.

Any government employee or official who violates any provision of this Act shall
be punished with imprisonment of two (2) years and/or a fine not exceeding PhP
200,000.00.

SECTION 8. Repealing Clause. — All acts, decrees, letters of instruction, issuances,
orders, or parts thereof inconsistent with any provision of this Act are hereby deemed
repealed or modified accordingly.

SECTION 9. Separability Clause. - If any part of this Act is declared
unconstitutional, the rest of the provisions shall remain in force and effect.

SECTION 10. Effectivity. - This Act shall take effect 15 days after its publication
in two (2) newspapers of general circulation or in the Official Gazette.

APPROVED.