EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session }
HOUSE OF REPRESENTATIVES
H.B.No,_4395

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT
PROVIDING FOR THE FAIR AND EQUITABLE ALLOCATION OF FARM-TO-
MARKET ROADS PROJECTS OF THE DEPARTMENT OF AGRICULTURE

EXPLANATORY NOTE

Farm-to-market roads offer distinct advantages to the agricultural sector. One, it
increases farmers’ profit, reduces transportation costs and post-harvest losses and introduces
competition among traders and suppliers alike. Second, it provides access to social services and
agricultural support services, which in turn improves productivity of farm workers and enhances
agricultural efficiency.

Farm-to-market roads also serve other developmental roles in the countryside, In an
Asian Development Bank (ADB) study on the effectiveness of poverty reduction interventions
on agrarian reform communities in the Philippines, it was observed that rural infrastructure —
roads, in particular ~ has the strongest impact on poverty'. Rural road development can lead to
influx of micro and small investments, short-term employment, enhancement of quality and
frequency of public transportation, and improved access to medical, health, and other social
services. As former National Economic Development Authority Director General Arsenio
Balisacan argued, “investment in land quality and in access to infrastructure, together with
sound fundamentals (i.e., fiscal and monetary restraint), are critical to the building of initial
conditions for broad-based growth and development?.”

For Fiscal Year 2019, P10.21 billion was appropriated under the budget of the
Department of Agriculture (DA) for farm-to-market road projects. However, such appropriations

*Stonmaa, $2008 ue) The pact of fue scan Act Supr rcs 7 Pry: Te Cae of Aran for
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2 gato A'M (2001 Fest. Pathway f Poverty Reducoon, Rural Development an Traremision Mechn nthe Pippin. Paper
‘presented a the Asa and Pciic Forum on Poverty: Reforming Poies and Inston for Poverty Reduction. Mana, Philipines.

1


came with no institutionalized mechanism to ensure equitable distribution of government
appropriations for farm-to-market roads. This situation renders the allocation of farm-to-market
roads vulnerable to exploitation by unscrupulous individuals who seek to further their own

personal and political interests.

This bill seeks to make countryside development inclusive through fair and equitable
distribution of government resources. It establishes a formula for the allocation of farm-to-
market road appropriations, taking into account the exigencies of factors such as land area and
population. Additionally, it penalizes willful misallocation of farm-to-market road
appropriations with incarceration and perpetual disqualification to hold public office. Through
the adoption of criteria for farm-to-market roads allocation, this bill seeks to ensure that no
locality shall be left behind.

In light of this, the approval of this bill is earnestly so

VILMA SANTOS-RECTO


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EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
H.B.No, 4355

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT
PROVIDING FOR THE FAIR AND EQUITABLE ALLOCATION OF FARM-TO-
MARKET ROADS PROJECTS OF THE DEPARTMENT OF AGRICULTURE

Be it enacted by the Senate and House of Representatives of the Phil
assembled:

yines in Congress

Section 1. Short Title, ~ This Act shall be known as the “Farm-to-Market Roads for All
Act of 2019.”

Sec. 2. Declaration of Policy. — It is hereby declared the policy of the State to encourage
rural development and to empower the agricultural sector towards meaningful and inclusive
economic development. Accordingly, the State shall provide for the development of the
agricultural sector of the entire country through the fair and equitable provision of adequate and
appropriate services, infrastructure and resources. With this end in view, the State shall ensure
the effective utilization of government resources through the establishment of a mechanism that
would ensure the fair and equitable allocation of farm-to-market road projects of the Department
of Agriculture (DA).

Sec. 3. Definition of Farm-to-Market Road. ~ For the purpose of this Act, the term
“Farm-to-Market Road” refers to a road linking the agriculture and fisheries production sites,
coastal landing points or post-harvest facilities to the markets, and arterial roads or highways.

Sec. 4. Allocation of Farm-to-Market Roads, — Notwithstanding any provision of the law
to the contrary, the appropriations for farm-to-market road projects under the DA shall be
allocated among provinces and municipalities in the following manner:

(a) Thirty percent (30%) of farm-to-market road appropriations to be allocated for
provinces; and

(b) Seventy percent (70%) of farm-to-market road appropriations to be allocated for
‘municipalities:


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Provided, That the share of each province and municipality shall be determined on the basis of
the following formula:

(a) Twenty-five percent (25%) of farm-to-market road appropriations to be allocated
pro rata according to the population of the province or municipality in relation to the total
population of the country;

(b) Fifty percent (50%) of farm-to-market road appropriations to be allocated pro rata
according to the land area of the province or municipality in relation to the total land area of the
country; and

(©) Twenty-five percent (25%) of farm-to-market road appropriations to be allocated
equally among the provinces or municipalities.

Sec. 5. Implementing Rules and Regulations. — Within sixty (60) days from the
effectivity of this Act, the DA shall, in coordination with the Department of Public Works and
Highways (DPWH) and the Department of Budget and Management (DBM), promulgate the
necessary rules and regulations to effectively implement the provisions of this Act.

Sec. 6. Separability Clause. ~ If, for any reason, any provision of this Act is declared
unconstitutional or invalid, such parts or portions not affected thereby shall remain in full force
and effect.

Sec. 7. Repealing Clause. — All laws, executive orders, presidential decrees, issuances,
rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

Sec. 8. Effectivity. — This Act shall take effect fifteen (15) days following its publication
in at least two (2) newspapers of general circulation or in the Official Gazette.

Approved,