NINETEENTH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
Farm-to-market roads (FMR’s) are roads that connect rural or agricultural areas to 
market towns and are used by farmers transport products to market towns or distribution 
centers. FMRs will provide access to agricultural goods to the market, as well as support for 
the establishment of agri-business enterprises by promoting linkages between and among the 
agrarian reform communities in different provinces. 
In the Philippines, agricultural markets play a key role in the lives of poor people 
especially considering that we are a developing country. Majority of our population are in 
developing regions and in rural areas where agriculture typically constitutes 50–90 percent of 
household income. As a result, the development of efficient agricultural markets has a large 
impact on the economic opportunities of rural households. Rural households, however, are 
subject to a number of constraints including lack of access to buyers of their products. These 
make their participation in the market both costly and risky, often leaving them “unconnected.” 
When these constraints are removed, farmers can earn more by specializing in crops for which 
they have a comparative advantage and purchase commodities that are relatively costly for 
them to grow. Further, FMR’s also generate jobs that would also help our economy.  
Republic Act 8435, or the “Agriculture and Fisheries Modernization Act of 1997" was 
enacted in order to have a more equitable distribution of opportunities, income and wealth; a 
sustainable increase in the amount of goods and services produced by the nation for the 
benefit of the people: and an expanding productivity as the key to raising the quality of life for 
all, especially the underprivileged. However, the same law seems to have a provision that is 
in contravention with the stated policies of the State provided for in the same law, particularly 
on the section on Farm-to-Market Roads. The law requires Local Government Units to provide 
a counterpart of not less than ten percent (10%) of the project cost subject to their Internal 
Revenue Allotment (IRA) level.  
As we all know, the IRA is a local government unit’s (LGU) share of revenues from the 
Philippine national government. Provinces, independent cities, component cities, 
municipalities, and barangays each get a separate allotment. The allotment is largely based 
upon the type of government they are and a formula based upon their land area and population. 
Section 284 of the Local Government Code of the Philippines (RA 7160) sets up the formula 
for the distribution of the allotment. For some municipalities, the IRA accounts for 90% of total 
revenues. Since cities have more sources of local revenues, their IRA ranges from 50% to 
70% of their total budget.  
Since some LGUs solely rely on IRA for their revenue, it would be very difficult for them 
and unfair to still require them to use their IRA for the construction of FMR’s which these LGUs 
really need to increase their revenue.  
In view of the foregoing, immediate passage of this bill is earnestly requested. 
 RUFUS B. RODRIGUEZ 
March 16, 2023
7:00 pm
7657


NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
AMENDING SECTION 52 OF REPUBLIC ACT NO. 8435 OR THE AGRICULTURE AND 
FISHERIES MODERNIZATION ACT OF 1997 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Section 52 of Republic Act 8435 is hereby amended to read as follows: 
“Section 52. Farm-to-Market Roads  
The Department shall coordinate with the LGUs and the resident-
farmers and fisherfolk in order to identify priority locations of farm-
to-market roads that take into account the number of farmers and 
fisherfolk and their families who shall benefit therefrom and the 
amount, kind and importance of agricultural and fisheries products 
produced in the area.  
Construction of farm-to-market roads shall be a priority [investment] 
of the LGUs. [which shall provide a counterpart of not less than ten 
percent (10%) of the project cost subject to their IRA level.] “ 
SECTION 2. Repealing Clause. - All laws, decrees, executive orders, rules and regulations 
and other issuances or part thereof, which are inconsistent with this Act, are hereby repealed, 
amended, or modified accordingly. 
SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (15) days following the 
completion of its publication in the Official Gazette or in two (2) newspapers of general 
circulation. 
 Approved, 
7657