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

Twentieth Congress
First Regular Session

2260

HOUSE BILL NO.

Introduced by Representative Raymond Adrian E. Salceda

AN ACT
AMENDING REPUBLIC ACT NO. 11524, OTHERWISE KNOWN AS THE
“COCONUT FARMERS AND INDUSTRY TRUST FUND ACT,” TO STRENGTHEN
ITS IMPLEMENTATION, ALIGN FUND UTILIZATION WITH INDUSTRY
EXPANSION AND FARMER NEEDS, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Republic Act No. 11524, or the Coconut Farmers and Industry Trust Fund Act, was
enacted in 2021 to provide long-overdue restitution to coconut farmers through the creation of
a long-term fund sourced from recovered coconut levy assets. It established the Coconut
Farmers and Industry Trust Fund (CFITF), governed by a Trust Fund Management Committee
(TFMC), and directed the formulation of a Coconut Farmers and Industry Development Plan
(CFIDP) to guide annual disbursements.

‘The law assigns fixed percentage allocations to several national agencies to implement
sectoral programs, including replanting, enterprise development, insurance, health care,
scholarships, infrastructure, research, and credit. These allocations are drawn annually from
the Trust Fund, subject to the preparation and approval of corresponding agency work
programs.

‘Three years after its enactment, implementation of the law has revealed institutional
and procedural constraints that hinder the full and timely utilization of the Fund. Although
sufficient resources are available, obligation rates remain suboptimal in some agencies. Certain
implementing agencies identified in the law have been unable to utilize their allocations due to
procurement bottlenecks, incomplete submissions, or limited absorptive capacity. At the same
time, other legally designated agencies have submitted technically sound and CFIDP-aligned
proposals that remain unfunded or underfunded because their allocation shares under the law
are already capped.

This bill secks to address that implementation imbalance while preserving the integrity
of the original allocation framework.


It introduces a limited corrective mechanism that allows the Trust Fund Management
Committee, in consultation with the Philippine Coconut Authority, to reallocate unutilized
funds in the following fiscal year to other agencies named in the law. This provision will apply
only to funds that remain unutilized within a reasonable period and will prioritize agencies that
have submitted eligible and underfunded proposals in support of the Coconut Farmers and
Industry Development Plan.

Second, the bill supports the national objective of increasing coconut productivity and
export competitiveness through an expanded planting and replanting effort. In his 2025 State
of the Nation Address, President Ferdinand R. Marcos Jr. called on Congress to amend the law
to make it more responsive to the needs of farmers. He emphasized the importance of
accelerating the coconut replanting program as part of the country’s broader agricultural
modernization and export strategy. Following this directive, the Philippine Coconut Authority
announced a national target of planting at least one hundred million coconut trees by 2028,
with average annual targets of twenty million trees. The Trust Fund can play a catalytic role in
achieving this goal.

To reinforce that national direction, the bill clarifies that a strategic share of annual
disbursements shall be prioritized for programs that support planting, nursery development,
hybrid seedling propagation, and related interventions, [t also provides mechanisms for
stronger coordination between implementing agencies and local government units, as well as
participatory oversight by coconut farmers’ organizations.

Finally, the bill corrects a procedural ambiguity by affirming that the power to
promulgate implementing rules and regulations rests with the Trust Fund Management
Committee, in accordance with Section 16 of Republic Act No. 11524. This amendment aligns
the implementing provisions with the institutional authority structure set forth in the original
law.

This measure does not alter the allocation structure nor the list of implementing
agencies. It simply ensures that public funds are directed to programs that are ready, relevant,
and aligned with national policy. It safeguards the intent of the law while unlocking its full
potential for the benefit of smallholder coconut farmers.

Immediate passage of this measure is respectfully urged.

RJAN E. SALCEDA


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

‘Twentieth Congress
First Regular Session

HOUSE BILL NO. 226 9

Introduced by Representative Raymond Adrian E. Salceda

ANACT
AMENDING REPUBLIC ACT NO. 11524, OTHERWISE KNOWN AS THE
“COCONUT FARMERS AND INDUSTRY TRUST FUND ACT,” TO STRENGTHEN
ITS IMPLEMENTATION, ALIGN FUND UTILIZATION WITH INDUSTRY
EXPANSION AND FARMER NEEDS, AND FOR OTHER PURPOSES

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

SECTION 1. Section 2 of Republic Act No. 11524 is hereby amended to read as
follows:

“SEC. 2. Declaration of Policy. — It is hereby declared the
policy of the State to consolidate and manage the coconut levy assets for
the ultimate benefit of coconut farmers and the development of the
coconut industry, and to use the fund for the rehabilitation and
modernization of the industry, increased coconut productivity and
income, poverty alleviation, and social equity.

IT IS LIKEWISE THE POLICY OF THE STATE TO
ENSURE THAT FUND UTILIZATION UNDER THIS ACT IS
STRATEGIC, RESPONSIVE TO THE NEEDS OF COCONUT
FARMERS, AND SUPPORTIVE OF NATIONAL GOALS FOR
INDUSTRY EXPANSION, RURAL DEVELOPMENT, AND
AGRICULTURAL EXPORT GROWTH.”

SEC. 2. Section 4 of Republic Act No. 11524 is hereby amended to read as follows:

“SEC. 4. Objectives. — The Coconut Farmers and Industry
Development Plan shall be formulated to accomplish the following
objectives:

(a) Increase the income and productivity of coconut farmers;


(b) Promote poverty alleviation, education, and social equity;
(©) Modernize and industrialize the coconut industry;
(@) Ensure sustainable and equitable development of coconut-based
enterprises;
(©) Provide support to coconut farmers, farm workers, and their families,
(CLUDING THROUGH EMERGENCY SUPPORT; AND
(f) INSTITUTIONALIZE AND IMPLEMENT A NATIONWIDE.
COCONUT PLANTING AND REPLANTING PROGRAM, INCLUDING
THE ESTABLISHMENT AND EXPANSION OF SEED FARMS AND
NURSERIES, THE PRODUCTION AND DISTRIBUTION OF HIGH-
YIELDING AND HYBRID COCONUT SEEDLINGS, AND THE
PROVISION OF TECHNICAL AND LOGISTICAL SUPPORT FOR
COCONUT REHABILITATION.”

SEC. 3. Section 8 of Republic Act No. 11524 is hereby amended by inserting a new
paragraph after the second paragraph, to read as follows:

“SEC. 8. Trust Fund Management Committee. — The Trust Fund
Management Committee shall be composed of the Secretary of Finance as
Chairperson, the Secretary of Budget and Management as Vice Chairperson,
and the Secretary of Agriculture as member.

The Committee shall approve disbursements from the Trust Fund only
in accordance with the Coconut Farmers and Industry Development Plan, as
prepared, approved, and validated in accordance with Sections 3 and 6 of this
Act.

THE TRUST FUND MANAGEMENT COMMITTEE SHALL
ENSURE THE PRIORITIZATION AND INCLUSION IN EACH YEAR’S
DISBURSEMENT PLAN OF A STRATEGIC PROGRAM
ALLOCATION FOR COCONUT INDUSTRY EXPANSION, FOCUSING
ON NATIONWIDE PLANTING AND REPLANTING, HYBRID
SEEDLING PROPAGATION, SEED FARM ESTABLISHMENT, AND
EXPORT-ORIENTED ENTERPRISE SUPPORT. THE COMMITTEE
SHALL COORDINATE CLOSELY WITH THE PHILIPPINE
COCONUT AUTHORITY IN DETERMINING THESE PRIORITIES
BASED ON THE TARGETS OF THE COCONUT FARMERS AND
INDUSTRY DEVELOPMENT PLAN.”

SEC. 4. Section 9 of Republic Act No. 11524 is hereby amended by inserting a new
paragraph at the end thereof, to read as follows:
“SEC. 9. Allocation and Use of the Trust Fund. —- The utilization
of the Trust Fund shall be in accordance with the Coconut Farmers and Industry

Development Plan.
The initial allocation from the Trust Fund shall be utilized as

follows:


(a) Fifteen percent (15%) for the planting and replanting of hybrid
coconut seedlings by the Philippine Coconut Authority (PCA);

(b) Five percent (5%) for the training of coconut farmers and their
families as listed in the Coconut Farmers Registry in farm schools through the
Technical Education and Skills Development Authority (TESDA) and
Agricultural Training Institute (ATI);

(c) Five percent (5%) for research and development by the
Department of Science and Technology — Philippine Council for Agriculture,
Aquatic and Natural Resources Research and Development (DOST-
PCAARRD), PCA, and the Department of Agriculture ~ Bureau of Agricultural
Research (DA-BAR);

(@) Ten percent (10%) for crop insurance through the Philippine
Crop Insurance Corporation (PCIC);

(e) Ten percent (10%) for farm-to-market roads through the
Department of Public Works and Highways (DPWH);

(f) Five percent (5%) for scholarships for farmers and their families
through the Commission on Higher Education (CHED);

(g) Five percent (5%) for health and medical programs for farmers
and their families through the Department of Health (DOH);

(h) Five percent (5%) for credit programs through the Development
Bank of the Philippines (DBP) and the Land Bank of the Philippines (LBP); and

(H Thirty percent (30%) for shared facilities programs through the
PCA.

DURING THE YEAR, IF ANY OF THE IMPLEMENTING
AGENCIES IDENTIFIED IN THIS SECTION IS UNABLE TO UTILIZE
OR OBLIGATE ITS PROGRAMMED ALLOCATION WITHIN A
REASONABLE PERIOD, THE TRUST FUND MANAGEMENT
COMMITTEE MAY, IN CONSULTATION WITH THE PHILIPPINE
COCONUT AUTHORITY, REALLOCATE SUCH UNUTILIZED
FUNDS IN THE NEXT FISCAL YEAR TO OTHER PROGRAMS AND
PROJECTS CONSISTENT WITH THE OBJECTIVES OF THE
COCONUT FARMERS AND INDUSTRY DEVELOPMENT PLAN. IN
SUCH CASES, PRIORITY SHALL BE GIVEN TO OTHER
IMPLEMENTING AGENCIES ALSO IDENTIFIED UNDER THIS ACT
THAT HAVE SUBMITTED QUALIFIED BUT UNFUNDED OR
UNDERFUNDED PROPOSALS DUE TO LIMITED INITIAL
ALLOCATIONS.”

SEC. 5. A new section is hereby inserted after Section 11 of Republic Act No. 11524
to read as follows:
“SEC. 11-A. INTER-AGENCY IMPLEMENTATION. — THE
PHILIPPINE COCONUT AUTHORITY, IN COORDINATION WITH
THE DEPARTMENT OF AGRICULTURE, THE DEPARTMENT OF


TRADE AND INDUSTRY, AND LOCAL GOVERNMENT UNITS IN
COCONUT-PRODUCING AREAS, SHALL IMPLEMENT THE
COCONUT PLANTING AND REPLANTING PROGRAM AND
RELATED SUPPORT PROGRAMS UNDER THIS ACT.

THE IMPLEMENTING AGENCIES SHALL ENSURE THE
ESTABLISHMENT AND OPERATION OF SEED FARMS AND
NURSERIES, THE TIMELY PROCUREMENT AND DISTRIBUTION
OF HYBRID SEEDLINGS, AND THE PROMOTION OF VALUE-
ADDED AND EXPORT-ORIENTED COCONUT PRODUCTS.

AN ANNUAL IMPLEMENTATION REPORT SHALL BE
SUBMITTED TO THE TRUST FUND MANAGEMENT COMMITTEE
AND TO CONGRESS, INDICATING PLANTING PERFORMANCE,
FUND UTILIZATION, AND MEASURABLE FARMER OUTCOMES.”

SEC. 6. Section 15 of Republic Act No. 11524 is hereby amended to read as follows:
“SEC. 15. Participation of Coconut Farmers. — Recognized and
accredited coconut farmers’ organizations shall be consulted in the formulation
and updating of the Coconut Farmers and Industry Development Plan and shall
be represented in the monitoring of implementation.
THEIR PARTICIPATION SHALL BE INSTITUTIONALIZED IN
THE PLANNING AND PRIORITIZATION OF PROGRAMS FUNDED
UNDER THIS ACT, PARTICULARLY IN PLANTING AND
REPLANTING INITIATIVES, AND IN THE IDENTIFICATION OF
COMMUNITY-BASED PROJECT SITES AND RECIPIENTS.”

SEC. 7. Implementing Rules and Regulations. ~ Within ninety (90) days from the
effectivity of this Act, the Trust Fund Management Committee shall promulgate the
implementing rules and regulations necessary for the implementation of this Act.

SEC. 8. Separability Clause. — If any provision of this Act is declared unconstitutional
or invalid, the remainder shall not be affected and shall remain in full force and effect.

SEC. 9. Repealing Clause. ~ All laws, decrees, executive orders, rules and regulations
inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 10. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,