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

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 957

Introduced by Representative Crispin Diego “Ping” D. Remulla

AN ACT
TO DEVELOP THE PHILIPPINE CORN INDUSTRY, ENHANCE THE
AVAILABILITY AND AFFORDABILITY OF QUALITY FEEDS AND STAPLE
FOOD, AND PROVIDE FOR A CORN COMPETITIVENESS ENHANCEMENT
FUND

EXPLANATORY NOTE

Com remains a major agricultural crop in the Philippines, covering around 17.1% of
the country's total agricultural land area, second only to rice at 32% and coconut at 24.3%. It
consistently ranks among the top crops in terms of both economic value and production
volume, placing third in average Gross Value Added (GVA) between 2010 and 2019, following
rice and bananas. Both yellow and white corn varieties are among the five most produced crops
in the country, underscoring their importance in the national food and feed supply chain.

From 2021 to 2023, yellow corn production showed a gradual increase from
approximately 6.06 million metric tons to about 6.37 million metric tons. White corn
production, however, slightly declined during the same period, from around 2.24 million metric
tons in 2021 to approximately 2.04 million metric tons in 2023. Despite the large volume, the
com industry continues to face significant challenges, particularly for smallholder farmers, who
comprise approximately 82% of the sector. These farmers typically manage only around 0.54
hectares of land each, limiting their ability to benefit from economies of scale and modem
technologies. As a result, the Philippines has one of the lowest corn yields in Southeast Asia,


averaging just 4.215 metric tons per hectare, which is about one metric ton less than Indonesia,

the regional leader.

In addition to low productivity, corn in the Philippines is priced significantly higher
than in neighboring countries. Domestic prices range from USD 0.42 to USD 0.44 per
kilogram, surpassing those in countries such as China, Vietnam, and Thailand. This disparity
is particularly concerning because yellow corn serves as a key input for animal feeds, and
higher com costs ripple through to increase the prices of pork and poultry. Consequently, food
affordability becomes an even greater concern for consumers.

To address these challenges, this legislative measure proposes to modernize and
strengthen the corn industry by enhancing productivity, ensuring supply sufficiency, and
making Filipino corn farmers more competitive globally. Through sustained support and
structural reforms, the bill aims to uplift com farming livelihoods and contribute to broader
national food security.

Given the foregoing, the immediate approval of this bill is earnestly recommended.

CRISPIN DIEGO “PING” D. REMULLA


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

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO._957

Introduced by Representative Crispin Diego “Ping” D. Remulla

AN ACT
TO DEVELOP THE PHILIPPINE CORN INDUSTRY, ENHANCE THE
AVAILABILITY AND AFFORDABILITY OF QUALITY FEEDS AND STAPLE
FOOD, AND PROVIDE FOR A CORN COMPETITIVENESS ENHANCEMENT
FUND

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

SECTION 1. Short Title. — This Act shall be known as the "Philippine Corn Industry
Development Act”

SEC. 2. Declaration of Policy. ~ It is the policy of the State to promote the inclusive
development and competitiveness of the com industry, particularly among smallhold farmers,
to increase the supply of yellow corn, white com and other indigenous com varieties to enhance
the availability and affordabi
is likewise the policy of the State to increase the income of farmers and farm workers to

of corn for the feeds industry and for human consumption. It

alleviate rural poverty through enhanced production efficiency and efficient post-production
facilities.

Towards this end, the State shall nurture an enabling environment and establish
responsive government policies and support programs for the corn industry, with primary focus
‘on the smallhold corn farmers.

The State shall be committed to providing necessary support and incentives to build
stronger partnerships and cooperation with the private sector in recognition of their vital role
in achieving the objectives of this Act.

SEC. 3. Definition of Terms. — As used in this Act:


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a) Corn refers to yellow corn for animal feeds, and white corn and other indigenous
com varieties for human consumption;

b) Feeds refers to a single or combination of ingredients, supplements, and additives
by specific formula to be fed directly to animals which is capable of providing the
nutritional requirements in order to sustain life, promote growth, production, and
reproduction; and

) Smalthold Farmer refers to a farmer owning or cultivating three (3) hectares or less
of farmland.

SEC. 4. Corn Industry Development Roadmap. ~The roadmap shall set the strategic
direction and key initiatives of the Corn Industry Development under this Act. It shalll be crafted
in consultation with relevant stakeholders that include but not limited to smallhold farmers,
feed processors, livestock farmers, regulatory offices, and academe. It shall be finalized within
sixty (60) days from the effectivity of this Act and updated every five (5) years thereafter.

‘The Bureau of Plant Industry, together with the government agencies cited in this Act,
shall spearhead the crafting of the roadmap.

SEC. 5. Designation of the Bureau of Plant Industry (BPI); Creation of a BPI Corn
Unit and BPI Field Offices. — The BPI is hereby designated as the implementing agency of
this Act. Towards this end, the BPI is hereby authorized to establish and maintain a Corn Unit
at its main office which shall be headed by the BPI Director. It shall also establish BPI field
offices in com production areas designated in this Act. Both shall derive budgetary support
from the Corn Fund.

The Corn Unit shall also be the Corn Program Management and Coordinating Office
(PMCO) which shall serve as the planning and administrative secretariat in the implementation
of this Act.

SEC. 6. Powers and Functions. — In addition to its existing powers and functions as
the premier government agency in the plant industry, the BPI shall have the following powers
and functions under this Act:

a) Manage, supervise and monitor the Corn Fund under Sections 8 and 9 of this Act;

b) In partnership with the Bureau of Agricultural Research (BAR) and the corn
research stations in com provinces designated herein, establish a network of
research institutions engaged in corn varietal improvement, propagation, and

distribution;


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c) Establish and manage a com gene bank of all the corn varieties developed under
this Act, which shall be kept, protected, accessed and utilized for the
implementation of this Act, especially those funded and developed by the BAR; and

d) Establish a reliable, efficient and holistic corn industry database management
system which shall cater to the needs of the corn industry, particularly the corn
production areas in this Act.

SEC. 7. Corn Production Areas. ~ The provinces of Isabela, Bukidnon, Pangasinan,
Quirino, Camarines Sur and other provinces as may be later identified by the BPI, are
designated as corn production areas and shall be the beneficiaries of the Corn Fund under this
Act. Their designation is based on historical corn production data of the country and climatic
factors.

The identified provinces shall share to other provinces, through the BPI field offices,
quality cor seeds and feeds they produce. The BPI shall draft guidelines for the
operationalization of sharing and distribution with other provinces.

SEC. 8. Creation of the Corn Competitiveness Enhancement Fund (Corn Fund).
In addition to the regular budget from the annual General Appropriations Act (GAA) of the
agencies herein mentioned, there is hereby created a Com Competitiveness Enhancement Fund
for the use of these agencies.

‘The Corn Fund shall consist of an annual appropriation of Three billion pesos
(P3,000,000,000.00) sourced from tariff collections on imported corn, feed wheat, feeds and
other products and ingredients for feeds for the fraction of the year and for the next ten (10)
years following the effectivity of this Act.

Corn Imports include imported products under the following HS headings or 2022
AHTN Codes, and Descriptions:

10.05 Maize (com).
1005.90.90 - - Other
1005.90.90.100 - - - In-Quota
1005.90.90.200 - - - Out-Quota

Feed Wheat Imports include imported products under the following HS headings or
2022 AHTN Codes, and Descriptions:

10.01 Wheat and meslin.
--- Other
1001.99.91 --Meslin
1001.99.99 -- Other


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Feeds and Other Products and Ingredients for Feeds Imports include imported products
under the following HS headings or 2022 AHTN Codes, and Descriptions:

10.03

10.04

10.07

23.01

- Barley
1003.10.00 - — Seed
1003.90.00 - Other
- Oats
1004.10.00 - — Seed
1004.90.00 - Other
- Grain Sorghum
1007.10.00 - Seed
1007.90.00 - Other
Flour, meals and pellets, of meat or meat offal, of fish or of crustaceans,

mollusks or other aquatic invertebrates, unfit for human consumption; greaves.
2301.10.00 - Flours, meals and pellets, of meat or meat offal; greaves 2301.20
- Flours, meals and pellets, of fish or of crustaceans,

mollusks or other aquatic invertebrates
2301.20.10 - Of fish, with a protein content of less than 60% by weight
2301.20.20 - Of fish, with a protein content of 60% or more by weight
2301.20.90 - Other

23.02 Bran, sharps, and other residues, whether or not in the form of pellets, derived

23.03

from the sifting, milling, or other working of cereals or of leguminous plants.
2302.10.00 - Of maize (com)
2302.30 - Of Wheat:
2302.30.10 - - Brans and pollards
2302.30.90 - - Other
2302.40 - Of other cereals:
2302.40.10 - Of rice
2302.40.90 - Other
2302.50.00 - Of leguminous plants
Residues of a starch manufacture and similar residues, beet-pulp,
bagasse, and other waste of sugar manufacture, brewing or distilling dregs and
waste, whether or not in the form of pellets
2303.10 - Residues of starch manufacture and similar residues:

2303.10.10 - - Of manioc (cassava) or sago


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2303.10.90 - Other
2303.20.00 - Beet-pulp, bagasse and other waste of sugar manufacture
2303.30.00 - Brewing or distilling dregs and waste

23.04 Oil-cake and other solid residues, whether or not ground or in the form

of pellets, resulting from the extraction of soya-bean oil.
- Soya-bean meal

2304.00.29 - - Other

2304.00.90 - - Other

23.05 2305.00.00 Oil-cake and other solid residues, whether or not ground

or in the form of pellets, resulting from the extraction of ground-nut oil.

23.06 Oil-cake and other solid residues, whether or not ground or in the forms

of pellets, resulting from the extraction of vegetable or microbial fats or
oils, other than those of heading 23.04 or 23.05.
2306.10.00 - Of cotton seeds;
2306.20.00 - Of linseeds;
2306.30.00 - Of sunflower seeds;
- Of rape or colza seeds
2306.41 - - Of low erucic acid rape or colza seeds
2306.41.10 - - - Of low erucic acid rape seeds
2306.41.20 - - - Of low erucie acid colza seeds
2306.49 - - Other:
2306.49.10 - - - Of other rape seeds
2306.49.20 - - - Of other colza seeds
2306.50.00 - Of coconut or copra;
2306.60 - Of palm nuts or kernels;
2306.60.10 - - Ground or in the form of pellets
2306.60.90 -- Other
2306.90 - Other:
2306.90.10 -- Of maize (corn) germ
2306.90.90 -- Other;
23.07 2307.00.00 Wine lees; argol.
23.08 2308.00.00 Vegetable materials and vegetable waste, vegetable

residues and by-products, whether or not in the form of pellets, of a kind used

in animal feeding, not elsewhere specified or included


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23.09 Preparations of a kind used in animal feeding.
2309.90 - Other
~~ Complete feed:
2309.90.11 - - - Of a kind suitable for poultry
2309.09.12 - - - Of'a kind suitable for swine
All tariff collections shall be automatically credited to a special account for Corn

Industry Development in the general fund of the national treasury which shall be in place within
forty five (45) days from the effectivity of this Act: Provided, That if the tariff collection
exceeds Three billion pesos (P3,000,000,000.00) in any given year within the next ten (10)
years following the effectivity of this Act, the excess tariff revenue shall automatically be added
to the Corn Fund of the following year and the total amount be allocated and utilized in
accordance with this Act.

Provided further, that allocation and ut

following guidelines:

ition of the Corn Fund shall be subject to the

a) The recipient agency shall be accountable and responsible for the management and
utilization of the said fund in coordination with other government agencies
‘concerned, It shall provide the Secretary of the Department of Agriculture (DA) and
the BPI Director with a regular report on its fund management and utilization;

'b) The amount allocated shall be released directly to the implementing agencies as
provided for in this Act based on the objectives and plans of the Corn Industry
Development Roadmap under Section 4 of this Act: Provided, That the unutilized
portion of the Corn Fund allocated to the implementing agencies shall not revert to
the general fund but shall continue to be used for the purpose for which it was set
aside. Fund releases charged against the said funds shall not be subject to any ceiling
by the Department of Budget and Management; and

©) Any program undertaken in accordance with this Act shall only be deemed

complementary and supplementary to, and shall not be a replacement of any
existing programs for com farmers already implemented by the DA and other
agencies concerned.

SEC. 9. Allocation, Disbursement and Utilization of the Corn Competitiveness
Enhancement Fund, ~ Subject to the usual accounting and auditing rules and regulations, the
Com Fund shall be allocated, disbursed and utilized as follows: Eighty percent (80%) for
yellow cor production; Twenty percent (20%) for white corn and other indigenous corn
ided by both as follows:

varieties, which shall be respectively di



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a) Forty percent (40%) — 23% for post-production, 15% for mechanization of corn
farms, to be implemented by PHILMECH as grant in kind to eligible farmers’
associations or organizations, registered corn cooperatives, and local government
units (LGUs) in the form of provision of corn farm equipment such as com planters,
tillers, farm tractors, forage choppers, rotary seeders, power/boom sprayers,
fertilizer spreader/applicator, harvesters, corn shellers, mechanical dryers, moisture
meters, feed processors, and the establishment and improvement of corn post-
harvest centers (including com mills, waste utilization facilities and equipment, and
corn-silage facilities), and warehouses and/or silos, and 2% for Program
Management Office (PMO): Provided, That PHILMECH shall endeavor to develop
and utilize local talents and resources in the manufacturing and provision of the
foregoing equipment, tools and facilities;

b) Twenty percent (20%) for provision of seeds and fertilizers, to be implemented

and/or supervised by the BPI: Provided, that in the procurement of seeds for

distribution to farmers under this Act, the BPI shall source seeds from the ones
developed by local Filipino seed producers and registered with the Philippine Seed

Board or National Seed Industry Council, until their supply lasts;

‘Twenty percent (20%) for the establishment and operations of the BPI Corn Unit

and the field offices in corn producing provinces in this Act, which shall include the

©

hiring and maintenance of needed personnel (15%), and for roadmap, corn bank,
review of the Com Fund, and holistic database management (5%);

d) Ten percent (10%) for extension and training activities to increase corn
productivity, including training course grants, training/capacity building of
beneficiaries for maintenance servicing of machinery and equipment, and
organizing and clustering of smallholder com farmers into formal groups,
cooperatives or associations. The fund shall be utilized by the Agricultural Training
Institute (4%), PHILMECH (3%) and DA-National Cor Program (2%); The
PHILMECH shall create its PMO for extension and training for 1%;

e) Ten percent (10%) for research to be implemented by Bureau of Agricultural

Research (BAR), 8% of which shall be spent for corn applied research and 2% for
basic research: Provided, That the research outputs shall be owned by the
government, through BPI, and any subsequent commercialization, propagation or
distribution of said outputs may be the subject of contractual arrangements between


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and among the BPI, BAR, and local Filipino private entities that developed said
outputs: Provided, further, That research initiatives shall include, but not limited to:

i) Nutrient Management which shall look into increase yield and income thru
the use of cost reducing technologies (Site-specific Nutrient Management for
Maize (SSNM), Integrated Pest Management (IPM), Community-based
Participatory Research (CPAR), and development of biofertilizers);

ii) Collection, conservation, and utilization of com varieties for the development
and improvement of resistance to biotic and abiotic stresses, and
development and commercialization of high yielding and stress resistant
open pollinated varieties and hybrids;

iii) Pest Management thru development of rapid detection of aflatoxin and other
pests;

iv) Mechanization thru development of low-cost postharvest machinery that will
reduce losses;

v) Sustainable soil and water management in corn production areas;

vi) Food and feed product development and commercialization for livelihood
upliftment; and

vii) Development of training and learning modules.

SEC. 10. Beneficiaries/Grantees of Corn Fund. —~ Within one hundred eighty (180)
days from the effectivity of this Act, the DA, in consultation with farmers’ cooperatives and
organizations and LGUs, shall validate and update the master list of eligible beneficiaries in
corn production provinces in this Act to ensure that those listed are corn farmers, cooperatives,
associations, and organizations.

The beneficiaries of the Corn Fund are smallhold corn farmers listed in the Registry
System for Basic Sectors in Agriculture (RSBSA), and corn farmer cooperatives, associations,
or organizations accredited by the DA in the designated com production provinces: Provided,
That preferential attention shall be given to smallhold corn farmers who are members of
cooperatives, associations or organizations.

SEC. 11. Review of the Corn Competitiveness Enhancement Fund. — The following
mandatory review of the Corn Fund shall be performed:

a) The Philippine Institute for Development Studies (PIDS) shall conduct impact

evaluation of the Com Fund program on corn productivity on the third (3"), sixth

(6") and ninth (9") year of the effectivity of this Act;


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b)

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The percentage allocation of the Com Fund will be reviewed on the third (3) year
from the effectivity of this Act for possible revisions should intervention priorities
change; and

On the ninth (9th) year from the effectivity of this Act, a mandatory review shall be
conducted by the Congressional Oversight Committee on Agricultural and Fisheries
Modernization (COCAFM) to determine whether the Cor Fund and its utilization
as provided for under this Act shall be continued, amended, or terminated. The
increase or decrease in farmers’ incomes shall be a primary benchmark in
determining the effectiveness of the interventions under the program and its
possible extension. In view of its oversight function, the COCAFM, at any time,
may conduct an assessment of the implementation of programs and utilization of

the Corn Fund as directed under this Act.

SEC. 12. Lifting of Export Restriction on Corn. — All laws, rules, regulations,

guidelines, and other issuances imposing export restrictions on corn, except those related to the

prevention and spread of plant, animal pests and diseases, are hereby lifted and/or repealed.
SEC. 13. Disposition of Corn Fund under the National Food Authority (NFA). — The
NFA shall liquidate and report on the accomplishment of its existing corn marketing assistance

program. Its corn development fund, enhanced electronic trading system for corn, created under

Presidential Memo No. 468 dated March 17, 1998, held in trust by the NFA, is hereby dissolved

and the remaining money balance is transferred to the BPI for inclusion in the Corn Fund.
SEC. 14. Powers of the President. ~ The President is hereby empowered to:

a)

b)

Revise or adjust existing rates of customs duties on corn, feed wheat, feeds, and
other products and ingredients for feeds imports up to their respective bound rates
committed by the Philippines under the WTO agreement on agriculture and under
ASEAN Trade in Goods Agreement, including any necessary change in
classification applicable to their importation, subject to the provisions of the
Customs Modernization and Tariff Act (CMTA): Provided, That the adjustment is
time-bound and that the power herein delegated to the President shall only be
exercised when Congress is not in session: Provided further, That any order issued
by the President adjusting the applied tariff rates shall take effect fifteen (15) days
after publication;

Allow the importation of com, feed wheat, feeds, and other products and ingredients
for feeds products at a lower applied tariff rate to address the situation in the event
of any imminent or forecasted shortage, animal disease epidemic, or such other


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situation requiring government intervention for a limited period and/or a specified
volume. Such order shall take effect immediately and can be issued even when
Congress is in session.

‘The power herein delegated to the President may be withdrawn or terminated by
Congress through a joint resolution.

SEC. 15. Value Chain Development and Market Access. — To ensure inclusive growth
and increase the income of corn farmers and stakeholders, the DA, in coordination with the
DTI, the DOST, and other relevant government agencies, shall implement programs that
support value chain development and enhance market access for corn and corn-based products.

SEC. 16. Separability Clause. — \f any provision of this Act is declared
unconstitutional, the remainder thereof not otherwise affected shall remain in full force and
effect.

SEC. 17. Repealing Clause. — Such other laws, presidential decrees, executive orders,
letters of instruction, proclamations or administrative regulations that are inconsistent with the
provisions of this Act are hereby repealed, amended, or modified accordingly

SEC. 18. Effectivity. — This Act shall take effect after fifteen (15) days following the

completion of its publication in the Official Gazette, or in a newspaper of general circulation.

Approved,

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