Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bi. NoL989

Introduced by Honorable Michael L. Romero and Enrico A. Pineda

EXPLANATORY NOTE

The State shall promote food security, including sufficiency in our staple food,
namely rice and white com. The production of rice and white com shall be
optimized to meet our local consumption and shall be given adequate support
by the State.

The State shall adopt the market approach in assisting the agriculture and
fisheries sectors while recognizing the contribution of the said sector to food
security, environmental protection, and that of the balanced urban and rural
development, without neglecting the welfare of the consumers, especially the
lower income groups. The state shall promote market-oriented policies in
agricultural production to encourage farmers to shift to more profitable crops.

This House Bill seeks to empower the agricultural and fisheries sector to develop
and sustain themselves. Toward this end, the State shall ensure the development
of the agriculture and fisheries sectors in accordance with its mandate and
principles.

Earnest approval of this bill is hereby requested.

ICH. L. ROMERO Ph.D roi ‘A. PINEDA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO.4989

Introduced by Honorable Michael L. Romero and Enrico A. Pineda

AN ACT

PROVIDING FOR ADDITIONAL FUNDING FOR THE "Agriculture and
Fisheries Modernization Act OF 1997" (RA No.8345), RE-ALIGNING ITS
ALLOTMENT AND DEFINING ITS DISBURSING GUIDELINES, AND FOR
OTHER PURPOSES

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

SECTION 1. Declaration of Policy - The Department of Agriculture (DA)
shall hereby provide an additional Five billion pesos (P5,000,000,000.00) to
promote urgent related measures to modernize the agriculture and fisheries
sector. The Department is hereby authorized to re-align its appropriations, along
with its supplemental and additional funding in the current year of the date of
the effectivity of this Act to conform with its mandate and requirements.


SECTION 2. Allocation and Disbursing Guidelines — for purposes of this act,
the additional funding shall be allocated and disbursed as follows:

1. Thirty percent (30%) for irrigation;

2. Ten percent (10%) for post-harvest facilities Provided, That the
Secretary of Agriculture may invest up to fifty percent (50%) of the
said amount to fund post-harvest facililies of cooperatives,
especially market vendors’ cooperatives, where said cooperatives
exist and are operational Provided, further, That if no cooperatives
are operational, said amount shall fund the post-harvest facilities of
the market -assistance system:

3. Ten percent (10%) for other infrastructure including fishports,
seaports, and airports, farm-and -coast-to-market roads, rural
energy, Communications infrastructure, watershed rehabilitation,
water supply system, research and technology infrastructure, public
markets and abattoirs;

4, Ten percent (10%) for the Agro-industry Modernization Credit and
Financing Program (AMCFP} to be deposited by the Department in
participating rural-based public and private financial institutions
provided that no less than fifty percent (50%) of said funds shall be
deposited in rural banks in cooperative banks;

5, Eight percent (8%) for the implementation of the Farmer-Fisherfolk
Marketing Assistance System and support of market vendors’
cooperatives;

6. Ten percent (10%) for research and development, four percent
(4%] of which shall be used to support the Biotechnology Program;

7. Five percent (5%) for capability-building of farmers and fisherfolk
organizations and LGUs for the effective implementation of the
agriculture and fisheries programs at the local level;

8. Six percent (6%) for salary supplement of Extension Workers under
the LGUs;


9. Five percent (5%) for NAFES , for the upgrading of the facilities of
State Universities and Colleges that will be chosen as national
center of excellence in agriculture and fisheries education;

10. Four percent (4%) for the National Information Network (NIN)
consisting of both the national and local levels;

11. One-and-three-fourth percent (1.75%) for SUC- and TESDA-
administered Rural Non-Farm Employment Training; and

12. One-fourth percent (0.25%) for the identification of the SAFDZs.

SECTION 3. Continuing Appropriation. - The Depariment of Budget and
Management (D8M) is hereby mandated to include annually in the next five (5)
years, in the President's Program of expenditures for submission !o Congress, and
release, an amount not less than Five billion pesos (P5,000,000,000.00) for the
implementation of this Act.

Additional funds over and above the regular yearly budget of the Department
shall be sourced from twenty percent (20%) of the proceeds of the securitization
of government assets, including the Subic, Clark, and other special economic
zones.

Other sources of funds shall be from the following:

a. Fifty Percent (50%) of the net earings of the Public Estates
Authority;

b. Loans, grants, bequest, or donations, whether from local or
foreign sources;

¢. Forty percent (40%) of the TESDA Skills Development Fund;

d. Net proceeds from the privatization of the Food Terminal Inc.
(FTl), the Bureau of Animal industry (BAI), the Bureau of Plant Industry
(BPI), and other assets of the Department that will be identified by
the DA Secretary and recommended to the President for
privatization;


e. Proceeds from the Minimum Access Volume (MAY) in
accordance with the provisions of Republic Act No. 8178;

f. Poverty alleviation Fund; and

g. Fifty Percent (50%) of the Support Facilities and Services Fund
under Republic Act No. 6657.

SECTION 4, Periodic Reports - The Committee shall submit periodic reports
on its findings and make recommendations on actions to be taken by Congress
and Senate and the appropriate department, and in order to carry out the
objectives and mandates of this Act, an additional amount of Five billion pesos
(P5,000,000,000.00) is hereby appropriated.

SECTION 5. Automatic Review - Every three (3) years after the effectivily of
this Act, an independent review panel composed of experts to be appointed
by the President shall review the policies and programs in the Agriculture and
Fisheries Modernization Act and shall make recommendations, based on its
findings, to the President and to both Houses of Congress

SECTION 6. Repealing Clause. All laws, executive orders, issuances, rules
and regulations inconsistent with this Act are hereby amended, repealed or
modified accordingly.

SECTION 7. Separability Clause. If, for any reason or reasons, any portion
or provision of this Act shall be held unconstitutional or invalid, the remaining
provisions not affected thereby shall continue to be in full force and effect.

SECTION 8. Effectivity Clause. This Act shall take effect fifteen (15) days
after its publication in any newspaper of general circulation.

Approved,