EIGHTEENTH CONGRESS OF THE 
)
REPUBUC OF THE PHILIPPINES 
)
F/rst Regular Session 
)
S E N A T E
S. B. No. 1166
Senate
ol tljf frrtrftarp
'19 
NOV 12 All 54
RECEIV'D BY;.
Introduced by Senator SONNY ANGARA
AN ACT
TO DEVELOP AND STRENGTHEN THE AGRICULTURAL EDUCATION AND 
TRAINING IN THE COUNTRY THROUGH THE INSTITUTIONALIZATION OF 
MANPOWER DEVELOPMENT FOR AGRICULTURAL ENTREPREURSHIP IN 
THE POST-SECONDARY LEVEL
EXPLANATORY NOTE
Agriculture remains a sector most vital to the country's overall development 
of, not just as the main driver of food security but also as a source of livelihood. In 
the decade starting from 2008, the agricultural sector has employed an average 11.4 
million1 Filipinos, accounting for a little less than one-third of total employment.
Throughout the same period however, the sector contributed to the country's 
Gross Domestic Product (GDP) only 11.2 percent on average, with gross-value added 
(GVA) averaging 1.38 percent2. These figures point to how the sector's productivity 
has remained lackluster for decades, contributing immensely to the chronic poverty 
and hunger plaguing our country. Despite the Philippines being a largely agricultural 
country, Philippine agriculture clearly remains a burgeoning, rather than a flourishing 
sector.
Through the Department of Agriculture and its attached agencies, the 
government is providing the support it can to the sector. However, current policies 
are inadequate, either in their form or in their implementation.
1 Philippine Statistics Authority (PSA), Selected Statistics on Agriculture 2010 -  2019. 
https://psa.qov.ph/content/selected-statistics-aqriculture. Accessed on October 18, 2019.
2 Ibid.


The associated problems and challenges are multi-faceted, but training and 
human capital development stand as areas that demand more focus and attention. 
Every year, universities and colleges graduate sizable numbers of students from 
agriculture-related courses. Yet, the outlook remains that agriculture is less of a 
profession or a profitable business enterprise than a means to daily subsistence. This 
may explain why agriculturai employment has steadily declined in the past decade.
To make Philippine agriculture more productive (and in turn more attractive 
to able-bodied Filipinos), the sector needs to be infused with an entrepreneurial 
spirit. Various initiatives may have already been rolled-out to address the need for 
agricultural entrepreneurship training programs, as enshrined by laws such as the 
Rural Farm Schools Act of 2013 (RA 10618). But clearly, these can be ramped up 
even further.
The foregoing measure aims to support current agricultural entrepreneurship 
training initiatives. Under this measure, men and women will be trained as 
agriculture entrepreneurs (agri-preneurs), 
equipped 
not just with 
hands-on 
agriculture experience but also business savvy. This can be accomplished through a 
ladderized system of agricultural education and training in the post-secondary level, 
which can be an extension of the Rural Farm Schools curriculum.
As the country's agricultural sector remains besieged with so many 
challenges, it is imperative that farmers are equipped with the necessary skills to 
transform their farms into profitable businesses. Flence, approval of this bill is 
earnestly sought.
SONNY ANGARA


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E  
S. B. No.
^ciialc
of tl)f ftfcrrlar?
•19 
NOV 12 All 54
RECEIVED BY;.
— I
Introduced by Senator SONNY ANGARA
AN ACT
TO DEVELOP AND STRENGTHEN THE AGRICULTURAL EDUCATION AND 
TRAINING IN THE COUNTRY THROUGH THE INSTITUTIONALIZATION OF 
MANPOWER DEVELOPMENT FOR AGRICULTURAL ENTREPREURSHIP IN 
THE POST-SECONDARY LEVEL
Be it enacted by the Senate and the House o f Representatives o f the Philippines in 
the Congress assembled:
1 
Section 1. Title. -  This Act shall be known as the "Entrepreneurial Agricultural
2 
Education Act."
3 
Sec. 2. Declaration o f Policy. -  It is hereby declared the policy of the State to
4 
promote the sustained development of a reservoir of national talents consisting of
5 
Filipino scientist, entrepreneurs; 
professionals, managers, high-level technical
6 
manpower and skilled workers and craftsmen in all fields. Towards this end,
7 
manpower education and training in the agricultural sector must be developed and
8 
strengthened in order to provide the country with a pool of educated and skilled
9 
agricultural manpower equipped with appropriate skills in agriculture and business,
10 
and desirable work habits and attitudes.
11 
Sec. 3. Agricultural Manpower Education and Entrepreneurship System. -  The
12 
State hereby establishes the Agricultural Manpower Education and Entrepreneurship
13 
System (AMEES) that will assume a leadership role in the post-secondary, vocational
14 
or tertiary level of agricultural and entrepreneurship education, following the
15 
completion of the rural farm school's curriculum in the secondary level.


1 
Sec. 4. Objectives. -  This Act primarily aims to develop and strengthen the
2 
agricultural education and training in the country through the institutionalization of
3 
manpower development for agricultural entrepreneurship in the post-secondary
4 
level. It shall have the following specific objectives:
5 
a. Encourage the application of manpower development for agricultural
6 
entrepreneurship in agricultural, technical and vocational education and
7 
training by both public and private schools within the context of existing
8 
agricultural training and educational system;
9 
b. Promote investment in manpower education and training for agriculture
10 
entrepreneurship by both public and private sectors especially in rural
11 
areas;
12 
c. Enhance the managerial skills and technical competence of students of
13 
agriculture by equipping them with analytical and creative thinking and
14 
problem-solving 
abilities; 
manipulative 
competencies 
suitable for
15 
occupational standards and requirements; values and 
attitudes with
16 
emphasis on work ethics, quality orientation, discipline, 
honesty, self-
17 
reliance and patriotism; and,
18 
d. Strengthen training cooperation between agricultural, industrial and
19 
business establishments and educational institutions by designing and
20 
implementing relevant training programs in close coordination with local
21 
government units.
22 
Sec. 5. Definition o f Terms. -  For purposes of this Act, the following terms
23 
shall mean:
24 
a. Agricultural Entrepreneurship refers to the process of identifying, starting
25 
and managing a farm business or enterprise, sourcing and organizing the
26 
required resources and taking both the risks and rewards associated with
27 
the venture;
28 
b. Manpower education and training refers to the instructional delivery
29 
system of agricultural, technical and vocational education and training that
30 
combines hands-on and in-school training based 
on a 
training plan
31 
designed and implemented by an accredited manpower education and
32 
training institution for agricultural entrepreneurship and accredited dual


1 
system agricultural, industrial and business establishments with prior
2 
notice and advice to the local government unit concerned;
3 
c. Trainee refers to a person qualified to undergo the manpower education
4 
and training for agriculture entrepreneurship;
5 
d. Farm Business Schoois are post-secondary schools where students, who
6 
are graduates of the Rural Farm Schools or any qualified secondary
7 
institution specializing in agriculture, shall be trained on agricultural
8 
entrepreneurship;
9 
e. Accredited dual training system educational institution or training center
10 
refers to a public or private institution duly recognized and authorized by
11 
the TESDA in coordination with the agricultural sector, business and
12 
industry, to participate in the manpower education and training for
13 
agricultural entrepreneurship;
14 
f. Accredited dual training system agricultural, industrial and business
15 
establishment refers to a juridical entity duly recognized and authorized by
16 
the TESDA to participate in the dual system for manpower education and
17 
training for agricultural entrepreneurship; and,
18 
g. Establishments refer to enterprises or services, or both, of agricultural,
19 
industrial, or business establishments.
20 
Sec. 6. Institutionalization o f the Manpower Education and Training for
21 
Agricultural Entrepreneurship. -  The manpower education and training for
22 
agriculture entrepreneurship, hereafter the System, shall be institutionalized in the
23 
Philippines. It shall form as part of the post-secondary education curriculum as
24 
provided in this Act.
25 
Sec. 7. Coverage. -  This Act shall apply to all public and private educational
26 
institutions 
or 
training 
centers, 
and 
agricultural, 
industrial 
and 
business
27 
establishments duly accredited to participate in the manpower education and
28 
training for agricultural entrepreneurship.
29 
Sec. 8. Components o f the Manpower Education and Training for Agricultural
30 
Entrepreneurship. -  The manpower education and training for agricultural
31 
entrepreneurship shall have the following components:


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
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18
19
20 
21 
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30
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1. There shall be a ladderized system of agriculture entrepreneurship 
education that begins in the post-secondary level following the completion 
of the Rural Farm School curriculum as provided in Republic Act No. 
10618 (Rural Farm Schools Act of 2013), or upon graduation in any 
qualified secondary institution, and culminates in applicable collegiate 
courses. The post-secondary program shall involve the conferment of a 
Diploma in Agricultural Entrepreneurship upon graduation of the trainee 
from the Farm Business Schools who shall have the option to continue his 
studies in partner universities for a degree in Bachelor of Science in 
Entrepreneurial Management, major in Farm Business;
2. There shall be created for each administrative region (excluding the 
National Capital Region) an AMEES Development School or Farm Business 
School, and such other schools as may be established by law;
3. There shall be an instructional delivery system of agricultural, technical 
and vocational education and training in each Farm Business School that 
combines hands on training and in-school training based on a training 
plan designed and implemented by an accredited manpower education 
and training institution for agricultural entrepreneurship and accredited 
dual system agricultural, industrial and business establishments with prior 
notice and advice to the local government unit concerned. Under this dual 
system, said establishments and the educational institution share the 
responsibility of providing the trainee with the best possible competencies 
and experience, the former essentially through practical training and the 
latter, by providing an adequate level of specific, general and theoretical 
instruction on agriculture and entrepreneurial management;
4. The AMEES shall Include instruction on vital values on citizenship, 
governance, entrepreneurship, work ethics, quality orientation, discipline, 
honesty, and self-reliance;
5. The partnership between the public, private and voluntary sectors shall be 
a crucial component of the AMEES in both academic content and in on- 
the-job or hands-on training; and.


1 
6. The AMEES shall also be promoted among poor farming families and out-
2 
of-school youth in the rural areas and in agrarian reform communities.
3 
The AMEES shall ensure that poor and deserving youths receive the
4 
necessary grants and scholarships.
5 
Sec. 9. Board o f Trustees. -  There shall be a Board of Trustees, herein
6 
referred to as the Board, composed of the Secretary of the Department of
7 
Agriculture (DA) as ex-officio Chairman, the Chairman of the Commission on Higher
8 
Education (CHED) as ex-officio Vice Chairman, and the following members:
9 
1. The Chairman of the Technical Education and Skills Development
10 
Authority (TESDA);
11 
2. The Director of the Bureau of Micro, Small and Medium Enterprise and
12 
Development (BMSMED);
13 
3. The Director of the DA-Agricultural Training Institute (ATI);
14 
4. Two (2) Representatives from the private sector representing higher
15 
education, industry, agriculture, and new and emerging agricultural
16 
technologies; and,
17 
5. Representative from a non-governmental organization.
18 
The 
representatives 
from 
the 
private 
sector 
and 
non-government
19 
organizations shall be appointed by the Chairman, subject to the confirmation of the
20 
Board of Trustees.
21 
The members of the Board shall serve for four years.
22 
Sec. 10. Powers and Functions o f the Board. -  The Board shall exercise the
23 
following powers and functions:
24 
a. Formulate policies and guidelines for the administration and operation of
25 
the AMEES;
26 
b. Formulate policies on the appointment, promotion, retention, removal,
27 
renewal, rewards and incentives for administrators, faculty and staff;
28 
c. Craft and approve the AMEES curricula;
29 
d. Approve the criteria for the selection and admission of students;
30 
e. Approve the grant of scholarship, stipend and such allowances for
31 
students;


1 
f. Approve the graduation of successful candidates from the various AMEES
2 
campuses or farm business schools;
3 
g. Formulate policies and rules of discipline for students, faculty and staff;
4 
h. Approve the AMEES budget and appropriate to the ends specified by law
5 
such sums as may be provided by law for the support of the System;
6 
i. 
Receive grants whether cash, land, buildings and improvements thereof;
7 
donations, contributions, bequest, gifts, and to formulate policies for the
8 
administration thereof;
9 
j. 
Develop policies for the expansion of enrollment in the campuses under
10 
the AMEES;
11 
k. Set policies and criteria to rationalize the establishment of AMEES schools
12 
under the System, for its evaluation and approval thereof;
13 
I. 
Prepare strategic plans to enhance the capability of the AMEES in
14 
developing human resources with focus on youth with special aptitudes
15 
and inclination to agriculture and entrepreneurship;
16 
m. Identify training centers /institutions that will provide manpower training
17 
and education; and,
18 
n. Perform such other functions as may be necessary to implement the
19 
provisions of this Act.
20 
Sec. 
11. 
Career Management Development Division. 
-  The 
Career
21 
Management Development Division (CMDD) of the Agricultural Training Institute
22 
(ATI) of the Department of Agriculture shall plan, set standards, coordinate, monitor
23 
and allocate resources in the implementation of the provisions of this Act and in
24 
support of the in plant training or on-the-job training component of the AMEES:
25 
Provided, That the agricultural and agro-industrial establishment shall be required to
26 
furnish the AMEES with the necessary information for the purpose of supervision.
27 
The CMDD shall be headed by a Division Chief (DC). The DC shall be assisted
28 
by such other personnel as may be necessary for the effective discharge of the
29 
functions of the office.
30 
Sec. 12. Duties and Functions o f the Division Chief. -  The DC shall perform
31 
the following duties and functions:
32 
1) Coordinate curriculum planning activities for the AMEES;


1 
2) Coordinate publication of farm 
business outputs of the teachers,
2 
administrators and students from the AMEES;
3 
3) Provide legal and technical support to the members of the System;
4 
4) Coordinate exchange programs with other educational institutions both
5 
local and foreign, including youth development and empowerment
6 
organizations such as the 4-H Club;
7 
5) Develop and coordinate linkages and networking among the campuses of
8 
the AMEES with other institutions;
9 
6) Coordinate the implementation of the program for the identification and
10 
selection of scholars for the AMEES;
11 
7) Provide for the secretariat services of the Board of Trustees; and,
12 
8) Perform such other functions as may be deemed necessary for the
13 
effective discharge of the DCs duties.
14 
Sec. 13. Status o f Trainee. -  Any student who is a bona fide graduate of a
15 
Rural Farm School or any qualified secondary educational institution shall be eligible
16 
to enroll in a farm business school. For the duration of the post-secondary
17 
manpower training under the System, the trainee is to be considered not an
18 
employee of the business/industrial establishment but rather a trainee of both the
19 
accredited dual training system educational institution and the agricultural, industrial
20 
and business establishments: Provided, That the union or the workers of the latter
21 
have been duly informed in advance of such an agreement.
22 
A trainee who has successfully completed a training program in a particular
23 
agricultural, 
industrial or business establishment shall 
be given 
priority of
24 
employment in that agricultural, industrial or business establishment. The CHED
25 
shall keep a roll of these successful trainees for purposes of identifying them for
26 
employment.
27 
Sec. 14. Obligations o f the Accredited Educational Institutions or Training
28 
Centers. -  The educational institutions or training centers that have entered into a
29 
memorandum of agreement with agricultural, industrial or business establishments
30 
to undertake training shall:


1 
a. Ensure that the necessary skills and knowledge are imparted to the
2 
trainee during his in-school trainings in accordance with an approved
3 
training plan;
4 
b. Design, implement and evaluate jointly the training plan with the
5 
accredited agricultural, industrial and business establishments;
6 
c. Provide the training instructors;
7 
d. Provide specific, general and occupation-related theoretical instructions;
8 
e. Appoint industrial coordinators to supervise the in-plant or farm training;
9 
f. Pay the trainee his daily allowance; and,
10 
g. Perform such other tasks and activities as may be necessary in
11 
furtherance of the objectives of the training.
12 
Sec. 15. Obligations o f Accredited Agricultural, Industrial and Business
13 
Establishments. -T h e  agricultural, industrial and business establishments shall have
14 
the following duties and responsibilities:
15 
a. Ensure that the necessary skills and knowledge are imparted to the
16 
trainee during his hands-on trainings in accordance with an approved
17 
systematic training plan;
18 
b. Appoint the training officer/s to implement the training plan;
19 
c. Make available, free of charge, the, consumable materials and basic hand
20 
tools and equipment necessary for the training;
21 
d. Allow the trainee to attend his in-school training and to sit for his
22 
examinations;
23 
e. Require the trainee to keep his report book up to date and inspect such
24 
books;
25 
f. Ensure that the trainee is encouraged to develop his personality and that
26 
he is protected from physical or moral danger;
27 
g. Entrust to the trainee such jobs as are related to the purpose of his
28 
training and are commensurate with his capabilities;
29 
h. Pay to the accredited educational institution/training centre the daily
30 
allowance of the trainee;
31 
i. Allow the trainee the necessary time off for his in-school training; and.


1 
j. 
Perform such other obligations in accordance with the provisions of this
2 
Act and other prevailing laws of the Philippines.
3 
Sec. 16. Obligations o f the Trainee. -  A trainee shall exert every effort to
4 
acquire the skills and knowledge necessary for him to achieve the purpose of his
5 
training. Towards this end, the trainee shall:
6 
a. Carefully perform the jobs entrusted to him as part of his training;
7 
b. Take part in training programs for which he has been granted time off
8 
under this Act;
9 
c. Follow the instruction given to him as part of his training by the training
10 
officer or any other person entitled to give him such instructions;
11 
d. Observe rules of behavior in the training premises;
12 
e. Use tools, instruments, machines and other equipment with due care;
13 
f. Not reveal any business or trade secrets that have come to his knowledge
14 
in the course of his training;
15 
g. Keep his record books up to date; and,
16 
h. Perform such other obligations in the attainment of the objectives of this
17 
Act.
18 
Sec. 17. Memorandum o f Agreements. -  Prior to the commencement of any
19 
manpower training, a memorandum of agreement (MOA) shall be signed by all
20 
parties which shall stipulate the following, among others:
21 
a) the training plan;
22 
b) the nature and objective of the training;
23 
c) the commencement and duration of the training period, including the total
24 
number of in-plant/farm training hours;
25 
d) the normal daily training hours;
26 
e) the trainee's allowance and the rate to be applied, which shall not be less
27 
than seventy-five (75) per cent of the applicable minimum daily wage;
28 
f) the rights and obligations of the parties concerned in addition to those
29 
provided in Sections 14,15 and 16;
30 
g) the definition of the status of the trainee according to Section 13 of this
31 
Act;
32 
h) the conditions for the termination of the training agreement;


1 
i) the performance, monitoring and evaluation system; and,
2 
j) such other essential particulars as would mutually benefit 
all patties
3 
concerned.
4 
Sec. 18. Incentives for the Trainees. -
5 
a. 
Every agricultural, industrial and business establishment undertaking
6 
training, in accordance with the provisions of this Act, shall sign a life and/or
7 
accident insurance policy on the life of the trainee with the insured and the spouse,
8 
children or parents of the trainee as the beneficiaries thereof: Provided, That the
9 
agricultural, industrial and business establishments shall pay for the premiums of
10 
said insurance policy.
11 
b. 
Upon graduation, the students will be provided funding as start-up
12 
capital for their farm business. Financial services and programs shall be made
13 
available to them .as stipulated in Republic Act No. 10000 or the 'The Agri-Agra
14 
Reform Credit Act of 2009". Students should be able to avail of loans without the
15 
need for collateral. A government guarantee fund shall be set aside for this purpose
16 
in case of a default or failure to pay the debt: Provided, That a proof is presented
17 
that the student suffers from financial hardships and is no longer able to pay his
18 
loan.
19 
c. 
The government shall also extend incentives to students for the
20 
production and propagation of organic farm inputs by maximizing their use in all
21 
government and government-supported agricultural production, research and
22 
demonstration programs, as embodied in Republic Act No. 10068 or the "Organic
23 
Agriculture Act of 2010".
24 
Sec. 
19. Incentives for Participating Estabiishments. 
-  To encourage
25 
agricultural, industrial and business establishments to participate in the system, they
26 
shall be allowed to deduct from their taxable income the amount of one hundred
27 
and fifty per cent (150%) of the system expenses paid to the accredited dual
28 
training system educational institution for the establishment's trainees: Provided,
29 
That such expenses shall not exceed five per cent (5%) of their total direct labor
30 
expenses but in no case to exceed twenty-five million pesos (P25,000,000.00) a
31 
year.
10


1 
Donations for the operation of the system shall be deductible from the
2 
taxable income of the donors. Donations to government-run educational institutions
3 
shall be awarded incentives under Republic Act No. 8525 or the "Adopt-a-School Act
4 
of 1998".
5 
The Department of Finance shall issue the necessary rules and regulations to
6 
implement the provisions of this Section.
7 
Sec. 20. Non-diminution o f Incentives. -  Nothing in this Act shall be
8 
construed to diminish or reduce any privilege already enjoyed by the parties
9 
concerned under existing laws, decrees or executive orders.
10 
Sec. 21. 
Other Exemption from Taxes and Duties. -  Any donation,
11 
contribution, bequest, subsidy or financial aid which may be made for the operation
12 
of the system shall constitute an allowable deduction from the income of the donors
13 
for income tax purposes and shall be exempt from donor's tax, subject to such
14 
conditions as provided under the National Internal Revenue Code, as amended.
15 
Essential equipment apparatus and materials imported by accredited dual training
16 
private educational institutions shall be exempt from taxes and duties: Provided,
17 
That the importation of these items shall be subject to the following qualifications
18 
that:
19 
a) the importation shall be certified by the appropriate authority;
20 
b) they should be actually, directly and exclusively used in connection with
21 
the dual training system and any unauthorized use shall subject the
22 
accredited dual training' private educational institutions to payment of
23 
taxes and duties thereon; and,
24 
c) they are not available locally in sufficient quantity of comparable quality,
25 
and at 35 reasonable prices.
26 
Provided, however. That taxes and duties pertaining to the importations of
27 
accredited government and dual training educational institutions are deemed
28 
automatically appropriated.
29 
The Department of Finance shall accumulate the necessary rules and
30 
regulations to implement the provisions of this section.
31 
Sec. 22. Revoiving Fund. -  Any law, rule or regulation to the contrary
32 
notwithstanding, the accredited dual training system educational institution/training
11


1 
center is hereby authorized to retain as a revolving fund the amount paid to it by
2 
the agricultural, industrial and business establishments representing the actual dual
3 
training expenses. The fund shall be used to improve the operation of the dual
4 
training system.
5 
Sec. 23. Implementing Rules and Regulations. -  The CHED, DA, TESDA and
6 
the Department of Finance, in coordination with other industries concerned, shall
7 
issue the necessary rules and regulations for the effective implementation of this Act
8 
within a period of ninety (90) days after its effectivity.
9 
Sec. 24. Separability Clause. -  If any part or provision of this Act is declared
10 
unconstitutional or invalid, other parts or provisions thereof which are not affected
11 
thereby shall continue to be in full force and effect.
12 
Sec. 25. Repealing Clause. -  All laws, decrees, executive orders, rules and
13 
regulations or other issuances or parts thereof, inconsistent with this Act, are hereby
14 
repealed, amended or modified accordingly.
15 
Sec. 26. Effectivity. -  This Act shall take effect fifteen (15) days after its
16 
publication in the Official Gazette or in two (2) newspapers of general circulation.
Approved,
12