TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S.B. No.
)
)
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SENATE
389
■ , ';r
. tU
of toe
25 JULIO P3:18
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
ENSURING THE DEVELOPMENT, PROMOTION, AND PROTECTION OF 
AGRICULTURAL COOPERATIVES
EXPLANATORY NOTE
Recent data from the Social Weather Stations (SWS) survey conducted in the 
first quarter of 2025 indicate a deeply concerning rise in involuntary hunger across the 
country. From 14.2% in March 2024, the figure increased sharply to 27.2% in March 
2025 — marking an almost 90% surge. This is 7 percentage points higher than the 
2024 annual average of 20.2% and represents the highest level of hunger recorded 
since the peak of 30.7% during the COVID-19 pandemic in September 2020.
Complementary to this, data from the Philippine Statistics Authority (PSA) show 
that, as of 2021, fisherfolk and farmers continue to be the poorest sectors in society, 
with poverty incidences of 30.6% and 30.0%, respectively.
These alarming trends underscore the urgent need to revitalize the agricultural 
sector as a key driver of food security and a critical avenue for poverty reduction.
The Department of Agriculture (DA) has affirmed the sector's central role in advancing 
the national food security agenda through initiatives such as the Farm-to-Market 
Network Plan.
However, systemic issues—including weak and fragmented service delivery— 
continue to hinder the full realization of agricultural development programs.
Despite the country's abundant natural and human resources, the agricultural 
sector remains constrained by inefficiencies that disproportionately affect smallholder 
farmers.


A strategic response lies in strengthening agricultural cooperatives, which can 
serve as effective conduits for government support, capacity-building programs, and 
market integration.
This bill, therefore, seeks to strengthen agricultural cooperatives as key 
institutional partners in achieving national food security and inclusive rural 
development. It aims to:
• 
Provide adequate resources and funding to enhance the productivity and 
sustainability of agricultural cooperatives;
• 
Promote clustering and consolidation to achieve economies of scale, facilitate 
service delivery, and improve competitiveness of agricultural cooperatives
• 
Promote the adoption of modern, climate-resilient, and sustainable farming 
practices and technologies;
• 
Encourage the establishment of cooperatives, associations, and support 
networks that improve access to credit, knowledge sharing, and collective 
marketing;
• 
Enhance the delivery of extension services, training, and technical assistance 
to build the capacity of smallholder and family farmers;
• 
Enable cooperatives to serve as platforms for poverty alleviation and food self- 
sufficiency in rural areas.
Through this proposed measure, the operational capacity and institutional 
support for agricultural cooperatives will be significantly strengthened, empowering 
millions of small-scale farmers who form the backbone of Philippine agriculture.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
i3.£t»<AQ.<jLjeJL
RISA HONTIVEROS b
Senator


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S.B. No.
)
)
)
SENATE
389
3f t»i? -r ir
25 JULIO P3:18
INTRODUCED BY SENATOR RISA HONTIVEROS
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AN ACT
ENSURING THE DEVELOPMENT, PROMOTION, AND PROTECTION OF 
AGRICULTURAL COOPERATIVES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
CHAPTER I
DECLARATION OF POLICY
SECTION 1. Short Title. - This Act shall be known as the "Agricultural 
Cooperatives Act of 2025."
Sec. 2. Declaration of Policy. - It is hereby declared to be the policy of the 
State, in line with the Constitution, that expanding productivity is the key to raising 
the quality of life for all especially the underprivileged, together with a sustained 
increase in the amount of goods and services produced by the nation for the benefit 
of the people.
In line with this, the State recognizes the need to hasten the growth, 
integration, and modernization of the agricultural sector in order to meet the rising 
dilemma of food insecurity, which disproportionately affects the marginalized sectors 
of society. The State further recognizes the indispensable need to encourage the 
participation of women and youth as a primary force in the government's drive to 
empower the agricultural sector. Therefore, the State shall focus on establishing a 
structure and network that institutionalizes support, capacity-building, and industry 
growth for agricultural cooperatives.
Similarly, it is the declared policy of the State to foster the creation and growth 
of cooperatives as a practical vehicle for promoting self-reliance and harnessing people


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power towards the attainment of economic development and social justice. Towards 
this end, the Government and all of its branches, subdivisions, instrumentalities, and 
agencies shall ensure the provision of technical guidance, financial assistance, and 
other relevant services to enable farmers, fisherfolk, and other agricultural workers to 
organize themselves into self-sustaining cooperatives that work together to strengthen 
the Philippine agricultural industry.
CHAPTER II 
GENERAL PROVISIONS
Sec. 3. Definition of Terms. - In so far as they are used in this Act, the following 
terms shall mean:
a. Agribusiness - refers to a range of activities that occur in the agricultural value 
chain utilized in modem food production, including but not limited to farming, 
forestry, fishing operations, as well as seed supply, agrichemicals, related 
machineries, processing, storage, marketing, distribution, and sales, whether 
wholesale or retail;
b. Agricultural Cooperative - refers to a type of cooperative comprising farmers, 
fisherfolk, agrarian reform beneficiaries, dairy farmers, community forestry 
farmers, aquaculture farmers, and other individuals engaged in agricultural 
activities. These individuals voluntarily organized themselves into an 
agricultural-based economic enterprise, including subsidiary agricultural 
cooperatives formed by existing multi-purpose cooperatives and multi-purpose 
cooperatives whose primary business activity is at least fifty percent (50%) 
related to agricultural production, agro-industry, agri-business, or services 
related to agricultural production. Agricultural activities encompassed by the 
cooperative include the production, processing, agrologists, and distribution of 
agricultural, fishery, and forestry inputs and products, whether primary, derived, 
or processed. The cooperative also provides a range of services aimed at 
improving the livelihood, income, and overall welfare of its members. These 
services include savings and credit, marketing, agricultural extension, farm 
education, agri-tourism, digital agriculture, and other allied services related to 
climate resiliency and safety nets;
c. Asset Development - refers to the growth and improvement, according to 
targeted goals and objectives, of key instruments and resources for agricultural 
operations, such as, but not limited to, land, buildings, which may Include 
residences, warehouses, or barns, irrigation systems, fences, and trees;


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d. Build Scale - refers to the growth or expansion of agribusiness in a proportional 
and profitable manner;
e. Cooperative - refers to an autonomous and duly registered association of 
persons, with a common bond of interest, who have voluntarily joined together 
to achieve their social, economic, and cultural needs and aspirations by making 
equitabie contributions to the capital required, patronizing their products and 
services, and accepting a fair share of the risks and benefits of the undertaking 
in accordance with universally accepted cooperative principles;
f. Clustering - refers to the process by which muitiple agribusinesses, each 
involved in different stages of the agricultural value chain, combine their 
operations into a singie hub. This collaboration aims to enhance operational 
efficiency, streamline processes, and maximize profits through integrated 
efforts;
g. Consolidation - refers to a process by which fragmented and scattered 
iandholdings are reorganized or restructured into larger, more contiguous plot 
or plots. This can be done through voluntary reallocation, sales, land exchanges 
or swaps, lease, and other means.
h. Criteria for Assessment and Ratings - refers to a set of standards in determining 
that the performance of an agricuiturai cooperative, which includes, among 
others, enterprise management, adherence to cooperative principles, and 
product or service quality;
i. 
Family Farming - refers to an agribusiness operation that is managed and 
operated by a family unit, related by consanguinity or affinity, whether nuclear 
or extended, and which predominantly relies on the labor of the members of 
such family for its operations. The family and the farm, therefore, are 
inextricably linked, and co-evolve with each other;
j. 
Local Development Flub (LDFI) - refers to a farming zone or transport 
infrastructure, which is generally far from formal markets. An LDFI serves 
around five hundred (500) to one thousand (1,000) farmers, and links them to 
buyers, which may be, among others, traders, processors, and export 
companies, among others.
k. National Federation of Agricultural Cooperatives (NFAC) - refers to a federation 
of agricultural cooperatives that are engaged in agribusiness and financial 
business for the benefit of the members through its subsidiaries.


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l. Wholesale Market - refers to a market, owned by the government and managed 
by the National Federation of Agricultural Cooperatives (NFAC) through its 
subsidiary/ies, where a trader buys farm produce from the farmers, through 
the agricultural cooperatives, in bulk and re-sells the goods to business houses 
or retailers to further sell the goods to end consumers.
m. Cooperative Climate Resilience Fund - refers to a grant-making mechanism that 
aims to ensure that agricultural cooperatives and their farmer-members are 
protected from and resilient to the impact of climate change.
Sec. 4. Registration and Supervision. - Agricultural Cooperatives shall be 
governed by the general law on cooperatives, except as otherwise provided herein. In 
connection with this, agricultural cooperatives must be registered with the 
Cooperatives Development Authority (CDA) in order to be entitled to the privileges 
and exemptions extended to cooperatives under Republic Act (RA) No. 9520, 
otherwise known as the Philippine Cooperative Code of 2008.
An agricultural cooperative shall file its application for registration with the CDA 
regional office that has jurisdiction over its area of operation. No fees shall be assessed 
or charged to any agricultural cooperative by any government entity, national or local, 
at any stage of its organization and registration process.
This notwithstanding, as the agency with the mandate to promote agricultural 
development by providing policy framework, public investments, and support services, 
the Department of Agriculture (DA) shall be the regulatory agency exercising primary 
supervision over the National Federation of Agricultural Cooperatives (NFAC). The 
Federation shall exercise supervision and control over its member-primary agricultural 
cooperatives.
Sec. 5. Capital Requirements of Agricultural Cooperatives. - The
authorized share capital of an agricultural cooperative shall be stated in its Articles of 
Cooperation. Prior to its registration, at least twenty-five percent (25%) of the 
authorized share capital shall be subscribed to by the members, and at least twenty- 
five percent (25%) of the subscribed share capital shall be paid-up: Provided, That 
the paid-up capitalization requirement for primary cooperatives shall not be less than 
Fifteen Thousand Pesos (P15,000.00).
Sec. 6. Cooperative Business Activities and Allied Services. - A duly 
registered agricultural cooperative may engage in all or any of the following activities:


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a. Raising and/or culture of plants, high-value crops, animals, fish, poultry, 
livestock, other agri-products as source of food, feed, and fiber, and other agri­
fishery or non-food commodities;
b. Production of salt;
c. Community and social forestry;
d. Provision of savings and credit facilities for marginal farmers and fishermen;
e. Facilitating the procurement and distribution of farm inputs/implements for its 
members;
f. 
Processing, marketing, and sale of members agri-products or produce;
g. Installation, maintenance and management of irrigation systems, water 
impounding, and other agricultural facilities; and
h. Other allied services such as, but not limited to, warehousing, cold storage and 
other post-harvest services, hauling, transport of members' products or 
produce, and such other similar business services and activities that will reduce 
cost or add value.
Sec. 7. Bond of Membership. - The bond of membership of agricultural 
cooperatives shall be any of the following:
a. Residential - members are farmers, farm workers, or fisherfolk who are actually 
and physically residing within the area of operation;
b. Occupational - members are those who are engaged in raising or culture of 
plants or animals, or are part of the technical and scientific communities of the 
agriculture sector;
c. Associational - members are from registered associations, groups, clubs, 
cultural and other similar aggrupation of farmers, farm workers, and fisherfolk; 
and
d. Institutional - members are employees, workers, or officers of a particular 
institution who are undertaking or will undertake agricultural projects. Provided,


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that at least fifty-one per centum (51%) of its members are duly registered 
with the Registry System for Basic Sectors in Agriculture (RSBSA).
CHAPTER III
BENEFITS OF AGRICULTURAL COOPERATIVES
Sec. 8. Tax Treatment of Agricultural Cooperatives that Transact with 
Non- members. - Notwithstanding any law or regulation to the contrary, duly 
registered agricultural cooperatives that transact with both members and non­
members, and with reserve funds of One Hundred Million Pesos (P100,000,000.00) or 
below shall be exempt from all national Internal revenue taxes, fees, and charges d 
whatever name and nature.
On the other hand, if such agricultural cooperatives have reserve funds of 
greater than One Hundred Million Pesos (PI00,000,000.00) shall pay the following 
taxes on their transactions with non-members:
a. Income Tax on Income derived from transactions with non-members: Provided, 
That the same tax is not consequently imposed on interest ndividually received 
by members. The tax base for all cooperatives liable to pay income tax shall be 
the income directly related from the business transactions with non-members 
after deducting the amounts for the statutory funds;
b. Value-Added Tax (VAT) on transactions with non-members: Provided, however, 
that duly registered agricultural cooperatives shall be exempt from the 
imposition of VAT, on the following:
1. Sales by agricultural cooperatives duly registered with the DA to their 
members as well as sale of their produce, whether in its original state 
or processed form, to non-members; their importation of direct farm 
inputs, machineries and equipment, including spare parts thereof, to 
be used directly and exclusively in the production and/or processing 
of their produce, and their resale to other agricultural cooperatives;
2. Gross receipts from lending activities towards its members or other 
agricultural cooperatives;
Provided, That the exempt transactions in the foregoing shall include 
sales made by agricultural cooperatives duly registered with the DA 
organized and operated by their members to undertake the production


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and processing of raw materials or of goods produced by their members 
into finished or process products for sale by the cooperatives to their 
members and non-members: Provided, however, that any processed 
product or its derivative arising from the raw materials produced by their 
members, sold in the name and for the account of the cooperative shall 
be deemed a product of the cooperative and Its members: Provided, 
further. That at least twenty five per centum (25%) of the net income 
of the cooperatives is returned to the members in the form of interest 
and/or patronage refunds.
c. All sales of goods and/or services rendered for non-members shall be subject
to the applicable percentage taxes; and
d. All other taxes unless otherwise provided herein.
Donations to duly accredited charitable, research and educational institutions 
and reinvestment to socioeconomic projects within the area of operation of the 
cooperative may be tax deductible.
Sec. 9. Tax Treatment of Agricultural Cooperatives that Transact with 
Members Only. - Duly registered agricultural cooperatives under this Act which do 
not transact any business with non-members or the general public shall not be subject 
to any taxes, fees, and charges imposed under the internal revenue laws and other 
tax laws.
Sec. 10. Other Benefits and Privileges of Agricultural Cooperatives. —
An agricultural cooperative shall enjoy the following benefits and privileges:
a. Taxes, Duties, and Liens:
1. 
All benefits, privileges, and tax treatments of cooperatives as 
defined and enumerated under RA 9520 and other relevant laws shall 
apply to agricultural cooperatives;
2. Agricultural cooperatives shall be exempt from customs duties, 
advance sales or compensating taxes on their Importation and local 
purchase of machineries, equipment, accessories, batteries, and 
spare parts used by them: Provided, That all tax- and duty-free 
imports and local purchases shall not be sold nor the beneficial 
ownership thereof be transferred to any person until after five (5) 
years, otherwise, the cooperative and the transferee or assignee shall


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be solidarity liable to pay twice the amount of the imposed tax and/or 
duties; and
3. All real properties owned, and those directly used for the operations, 
management, and maintenance of agricultural cooperatives shall be 
exempt from the payment of real property taxes Imposed under 
existing laws.
b. Trainings and Conferences - All trainings and conferences for the organization, 
registration, management and operations of an agricultural cooperative, 
rendered by the appropriate government agency, shall be given free of charge, 
including costs of venue, training materials, speakers and resource persons. 
The CDOs shall be primarily responsible for these trainings and conferences 
within their respective localities.
c. Consolidation - Agricultural cooperatives may consolidate agricultural lands 
owned by its members within in a contiguous area for purposes of agricultural 
development.
d. Negotiated Procurement by National and Local Government Agencies. To 
promote and support agricultural cooperatives, national and local government 
agencies shall negotiate the procurement of agricultural products and other 
agricultural commodities from registered and accredited agricultural 
cooperatives. Negotiated procurement of these products and commodities shall 
follow RA 12009, its implementing rules and regulations, and applicable 
guidelines issued by the Government Procurement Policy Board; Provided 
the procurement of said products and commodities are necessary for the 
performance of the mandates of the procuring entities.
e. Loans and Grants:
1. All loans applied for by agricultural cooperatives in any government- 
owned or -controlled banks or government financial Institutions shall 
enjoy preferential treatment as to the requirements, rates, securities, 
and collaterals; and
2. The DA shall coordinate with the Bangko Sentral ng Pilipinas (BSP) 
to lower the requirements for all loans applied for and granted to 
agricultural cooperatives.


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f. Strengthening Program for Agricultural Cooperatives - the government through 
the DA and CDA shall introduce a program aimed at strengthening agricultural 
cooperatives through mergers and consolidations. This initiative, part of the 
government's broader effort to enhance the stability and resilience of the 
agriculture sector, offers income support incentives to encourage smaller 
agricultural cooperatives and farmers associations to consolidate that can lead 
to improved operational efficiencies, reducing costs and improving service 
delivery for agricultural cooperatives. These may include grants or subsidies 
that help build business scale and improve capital base, operational synergies, 
broader service offerings, and risk mitigation.
Sec. 11. Organization as a Multi-Purpose Cooperative. -
Notwithstanding any law to the contrary, an agricultural cooperative may be organized 
as a multi-purpose cooperative from its registration with the CDA: Provided, that it 
has complied with the minimum requirements for an agricultural cooperative as 
prescribed by the CDA Rules and Regulations.
Sec. 12. Pre-Cooperative Agricultural Organization. - Prior to 
registration with the CDA, a group of natural persons intending to form an agriculture 
cooperative may voluntarily form a Pre-Cooperative Agricultural Organization (PCAO) 
that shall have its own juridical personality to undertake activities that shall determine 
the viability of the creation of an agricultural cooperative. The PCAO must be 
registered as such with the Cooperative Development Offices (CDOs) of the 
appropriate LCD where the PCAO intends to operate. The Bureau may assist and 
endorse PCAOs to CDA for registration.
The DA and CDA, in coordination with the CDOs, shall assist PCAOs so that they 
can formally organize as agricultural cooperatives; Provided, that should the PCAO 
decide to formally organize into a cooperative, it must comply with the requirements 
under the law. Any contract executed by the PCAO prior to its registration as an 
agricultural cooperative shall remain valid and binding between the parties insofar as 
it redounds to the benefit of the cooperative.
The DA and CDA shall jointly issue guidelines on the mechanisms for PCAOs.
CHAPTER IV
NATIONAL FEDERATION OF AGRICULTURAL COOPERATIVES
Sec. 13. Organization of the National Federation of Agricultural 
Cooperatives (NFAC). - There is hereby organized the National Federation of


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Agricultural Cooperatives (NFAC), (hereinafter, the "Federation"), which shall be the 
single federation of agricultural cooperatives.
Sec. 14. Consolidation/Merger of Existing Duly-Registered 
Agricultural * Cooperatives Federation. - Agricultural Cooperative Federations 
duly-registered with the CDA prior to the effectivity of-this Act shall merge or 
consolidate in accordance with existing applicable laws, rules and regulations. The 
merged or consolidated federation shall serve as the single National Federation of 
Agricultural Cooperatives (NFAC).
The DA and CDA shall issue the guidelines on the merger and/or consolidation 
of existing federations of agricultural cooperatives.
Sec. 15. Mandatory Membership of Primary Agricultural Cooperatives 
to the Federation. - It Is compulsory for Primary Agricultural Cooperatives to 
become members of the National Federation of Agricultural Cooperatives (NFAC).
Sec. 16. Governance of the Federation. - The Chairpersons of the member­
primary agriculture cooperatives shall comprise the General Assembly of the 
Federation who shall elect and appoint the Officers and Management Staff in 
accordance with its duly-approved Articles of Cooperation and By-Laws.
Sec. 17. Primary Business Operations Through Subsidiary/ies. - The
Federation shall be allowed to organize subsidiary cooperatives and/or corporations 
that will engage in Agribusiness and Financial Business the surplus and/or income of 
which shall be utilized to fund, wholly or in part, the needed services of the member­
primary agricultural cooperatives. Such subsidiary/ies shall be registered with the 
necessary regulatory authorities including, but not limiting to, the DA, CDA, SEC and 
Board of Investments and shall enjoy the relevant exemptions and privileges under 
this Act, the Cooperative Code, and other laws, rules and regulations.
Sec. 18. Channel And/Or Partner of Farmer-Related Government and 
Non- Government Programs, Projects and Activities. - The Federation shall 
serve as channel and/or partner in the implementation of various Programs, Projects 
and Activities of National Government Agencies, Local Government Units and Non- 
Government Organizations for the benefit of the farmers and their respective families.
Sec. 19. Inter-Cooperative Arrangements. - The Federation shall be 
allowed to enter into inter-cooperative arrangements with and among other non­
agriculture cooperative federations and other entities to pursue value and supply chain 
solutions and other agribusiness development programs, subject to the guidelines to 
be jointly promulgated by the DA and CDA.
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Sec. 20. Partnership and Joint Venture with Private Entities. - Duly 
registered private entitles may enter into a partnership or joint venture with the 
Federation in order to provide the latter with investments and technological support, 
such as, but not limited to technological, logistics, and facilities support, among others. 
Such partnership or joint venture shall be registered with the necessary regulatory 
authorities, including the DA and CDA, and shall enjoy the relevant exemptions and 
privileges under this Act, the Cooperative Code, and other laws, rules and regulations.
This notwithstanding, the equity or contribution d such private entity shaft not 
exceed forty percent (40%) of the partnership or joint venture.
Sec. 21. Supervision and Control - The DA shall exercise supervision and 
control over the Federation. In like manner, the Federation shall exercise supervision 
and control over its member-primary agricultural cooperatives through the conduct of 
regular audit/s in accordance with the standards approved by the DA and the CDA. 
Sanctions imposed on non-compliant member-primary cooperatives shall be approved 
by the DA and CDA.
The DA and CDA shall, in consultation with the Federation, issue guidelines on 
the supervision and control of agricultural cooperatives.
CHAPTER V 
WHOLESALE MARKET
Sec. 22. Establishment of Wholesale Markets. - There is hereby 
established at least one Wholesale Market in every province owned by the respective 
Local Government Units (LGUs) and operated by the National Federation of 
Agricultural Cooperatives (NFAC) or its appropriate subsidiary/ies.
The DA, DILG and the CDA shall, in close coordination with the Federation, 
issue the rules and regulations on Wholesale Market establishment and operation.
CHAPTER VI
COOPERATIVE CLIMATE RESILIENCE FUND
Sec. 23. Creation of the Cooperative Climate Resilience Fund. - There 
is hereby established a Cooperative Climate Resilience Fund managed by the National 
Federation of Agricultural Cooperatives (NFAC) to be pooled from government, 
agricultural cooperatives and other private entities, the utilization of which shall be 
subject to the guidelines promulgated by the Agricultural Cooperatives Council. At
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least fifty per centum (50%) of the Cooperative Climate Resilience Fund shall come 
from the government.
CHAPTER VII
BUREAU OF AGRICULTURAL COOPERATIVES
Sec. 24. Creation of the Bureau of Agricultural Cooperatives. - The DA shall 
establish a Bureau of Agricultural Cooperatives (hereafter, the "Bureau"), which shall 
be the primary coordinating, implementing, and administrative body responsible for 
matters relating to agricultural cooperatives, including, but not limited to, monitoring 
their performance and implementing plans and programs for their growth and 
development. The Bureau shall be headed by a qualified Director, and its 
organizational and staffing pattern shall be determined by the DA, in accordance with 
the rules set forth by the Department of Budget and Management (DBM).
Sec. 25. Powers and Functions of the Bureau of Agricultural Cooperatives. - 
The Bureau of Agricultural Cooperatives shall exercise the following powers and 
functions:
a. Collaborate and coordinate with various government agencies, institutions, and 
units for the development and implementation of projects and plans for 
agricultural cooperatives;
b. 
Promote the use of digital platforms and innovative technologies for the growth 
and development of agricultural cooperatives, in coordination with the relevant 
agencies;
c. Consolidate and study all relevant information regarding agricultural 
cooperatives that shall be used in the formulation of policies and programs for 
the sector;
d. Develop advocacy programs for capacity-building and further education of 
members of agricultural cooperatives, with a particular focus on women and 
youth;
e. 
Provide technical assistance to agricultural cooperatives;
f. 
In partnership with the NFAC, establish Local Development Flubs (LDFIs) In 
order to foster cooperation, collaboration, and mutual support among 
agricultural cooperatives, in coordination with the CDA and LGUs;
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g. Promote agricultural cooperative dusters and assist in the creation thereof, as
a means to forge strategic partnerships among cooperatives; and
h. Monitor and evaluate the performance of agricultural cooperatives according to
an established assessment and ratings system.
Sec. 26. Sustainability Mapping. - Within one (1) year from the effectivity of 
this Act, the Bureau shall undertake a comprehensive nationwide survey in order to 
assess the agricultural sustainability status of each region and LGU. The findings of 
such nationwide survey shall serve as the foundation for the formulation of a ten (10)- 
year Food Security Master Plan. The Master Plan shall identify priority sectors and 
projects aimed at promoting agricultural development and sustainability throughout 
the country. The plan shall be designed to enhance food security, improve agricultural 
productivity, and ensure long-term sustainability of the agricultural sector.
Sec. 27. Clustering and Consolidation. - In order to pool their resources for 
increased viability and market competitiveness, the DA, Department of Agrarian 
Reform (DAR), Department of Trade and Industry (DTI), CDA and NFAC shall jointly 
establish a program that will promote, encourage agricultural cooperatives and 
facilitate their cooperation into clusters that will encompass the whole agricultural 
value chain, including but not limited to land consolidation, postharvest processing, 
distribution, logistics, marketing, and promotions.
Within sixty (60) days from the effectivity of this Act, the DA, DAR, DTI and 
CDA, in consultation with the NFAC, shall jointly issue the guidelines for the 
implementation of the foregoing program, and shall provide the necessary assistance 
at every step of the clustering and consolidation process, including the formulation of 
cluster development plans.
Notwithstanding any law to the contrary, the clustering or merger and 
consolidation of agricultural cooperatives shall be in accordance with the 
Implementing Rules and Regulations of this Act.
Sec. 28. Local Development Hubs. - The DA and CDA shall jointly establish Local 
Development Flubs (LDFIs) in order to strengthen the market linkages between 
farmers and buyers, fostering agricultural development and economic growth at the 
local level. Further, they shall jointly issue the guidelines for the operations and 
maintenance thereof.
Sec. 29. Collaboration with the NFAC, Cooperative Development Councils and 
National Government Agencies. - The Bureau shall, in collaboration with the National
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Federation of Agricultural Cooperatives (NFAC), LGUs through the Regional, Provincial, 
City, and Municipal Cooperative Development Councils and the CDOs, facilitate and 
promote programs and policies that enables the growth and development of 
agricultural cooperatives. The DA, CDA, and the relevant LGU or agency in consultation 
with NFAC shall issue a Joint Memorandum Circular for the implementation of this 
provision.
Agricultural cooperatives shall be entitled to financing support from the relevant 
government agencies that shall allocate funds for the establishment of projects and 
programs for the development and promotion of agricultural cooperatives.
Sec. 30. Sustainability and Innovation. - The Bureau shall allocate funding and 
support for the development and implementation of innovative and sustainable 
agricultural practices.
Sec. 31. Mentorship and Training. - The Bureau shall implement programs that 
will focus on the capacity- and capability-building of members of agricultural 
cooperatives, especially the empowerment of women and young farmers. Among 
others, these programs may include:
a. Internship and apprenticeship programs with duly accredited agricultural 
cooperatives. In partnership with the Committee on Higher Education (CHED);
b. Certification programs for management and operation of agricultural 
cooperatives, as well as related technical skills, in partnership with the Technical 
Education and Skills Development Authority (TESDA);
c. Scholarships or student loan forgiveness, as may be necessary; and
d. 
Incentives for the discovery or development of innovative and sustainable 
agricultural practices or techniques.
Sec. 32. Assessment and Ratings. - Upon the effectivity of this Act, the Bureau 
shall establish an assessment and ratings system for agricultural cooperatives, which 
shall measure the performance, including the social and community impact, of the 
latter using both qualitative and quantitative metrics, and which shall be used to 
classify and determine the best-performing agricultural cooperatives among various 
categories. Thereafter, the Bureau and the CDA, in close coordination with NFAC shall 
review the performance of registered agricultural cooperatives every three (3) years 
and update their ratings accordingly.
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The DA and CDA, in consultation with NFAC shall use the foregoing in the 
provision of incentives and benefits to agricultural cooperatives under the law.
Sec. 33. Annual Trade Fair and Awards. - The Bureau, in coordination with the 
CDA and the National Federation of Agricultural Cooperatives (NFAC), shall establish 
the Annual Agricultural Cooperatives Trade Fair and Awards to showcase exemplary 
business achievement, latest innovations, and other emerging trends in the sector. 
The Bureau shall ensure that agricultural cooperatives are able to participate and 
exhibit their products during said Fair and shall encourage the latter's participation in 
other trade fairs and expos.
CHAPTER VIII
AGRICULTURAL COOPERATIVES COUNCIL
Sec. 34. Creation of the Agricultural Cooperatives Council. - There Is hereby 
created the Agricultural Cooperatives Council (hereafter, the "Council"), which shall be 
the primary policy and planning body for the promotion, development, and 
modernization of agricultural cooperatives and organizations.
Sec. 35. Composition of the Council. - The Council shall be composed of the 
following members, or their duly authorized representatives:
Secretary of Agriculture, as Chairperson;
Chairperson of the CDA, Vice-Chairperson;
Undersecretary of the Department of Trade and Industry;
Undersecretary of the Department of Agrarian Reform;
Undersecretary of the Department of Environment and Natural Resources; 
Undersecretary of the Department of Education;
Undersecretary of the Department of Science and Technology;
h. Undersecretary of Department of Economy, Planning and Development;
i. 
Director-General of the Technical Education and Skills Development Authority; 
Executive Director of the National Disaster Risk Reduction and Management 
Council;
Commissioner of the Commission on Higher Education;
Representative from the Philippine Statistics Authority;
One (1) Representative each from Cooperative Climate Resiliency Fund private 
donor entities;
Representative from the National Federation of Agricultural Cooperatives (NFAC) 
and
a.
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0. Two (2) representatives each, from the primary agricultural cooperatives sector 
who are members of the National Federation of Agricultural Cooperatives 
(NFAC), for Luzon, Visayas, and Mindanao
Sec. 36. Powers and Functions of the Council. - The Council shall exercise the 
following powers and functions:
a. Formulate and issue policies for the growth and development of the agricultural 
cooperative sector, which shall encompass adoption of innovative and 
ecological agricultural practices, access to resources and benefits, market 
opportunities, and capacity-building, among others;
b. Formulate the Food Security Master Plan, in coordination with the Bureau;
c. Provide an integrated framework in order to optimize all government resources 
for the modernization and empowerment it of the sector;
d. Issue guidelines, rules, and regulations for the development of the tangible 
assets, such as machineries, granaries, equipment, and lands, among others, 
of agricultural cooperatives;
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Issue guidelines, rules, and regulations, in coordination with the appropriate 
agencies, to ensure the rights and welfare of agricultural cooperatives and their 
members, especially women, youth, and family farmers, as well as their 
preferential treatment in government procurement as enshrined under the law;
f. Formulate policies for the development of sustainable financial reform in the 
agricultural cooperative sector, including the creation of a government financial 
institution that will specifically cater to the sector, in coordination with the 
relevant departments and agencies;
g. Develop policies and guidelines for the institutionalization of Cooperative 
Resilience Mechanism (CRM) that will aid agricultural to adapt to and recover 
from the effects of climate change or other unforeseen circumstances. The CRM 
shall embody a holistic approach, with provisions for funding assistance, 
addressing production and distribution issues, and use of new or innovative 
technologies, production technologies using renewable energies, regenerative 
and sustainable agriculture, among others; and
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h. Advocate for policy reforms and programs that enhance social protection of the 
agricultural cooperatives and their members, including access to healthcare, 
insurance, and retirement benefits, among others.
Sec. 37. Policies Fostering Indusivity and Sustainability. - Recognizing the 
contributions of women and youth to the agricultural sector, as well as the need to 
improve indusivity, the Council shall prioritize policies that seek to improve women 
empowerment and youth participation in the sector, and which shall foster 
sustainability and further opportunities for economic growth.
Further, the Council shall prioritize the implementation of policies that enhance 
biodiversity, sustainability, and agroecology, and the development of innovative 
farming techniques and practices.
Sec. 38. Secretariat. -The Bureau shall serve as the Secretariat to the Council.
Sec. 39. Per Diem. -The members of the Council shall each receive a per diem 
pursuant to existing laws, for each meeting of the Council actually attended; provided, 
that in the case of representatives from the private sector, the Council is authorized 
to provide funds to defray the cost of reasonable travel expenses, in addition to the 
per diem, as may be necessary.
Sec. 40. Pole of Local Government Units. -The Local Government Units shall:
a. Ensure the appointment of CDOs in compliance with Republic Act NO. 11535;
b. Create a Committee on Agricultural Cooperatives Development in the Local 
Government Legislatives Council, which shall focus on addressing legislative 
concerns of agricultural cooperatives;
c. Disseminate information and promote agricultural cooperatives in their 
respective localities;
d. Facilitate the establishment and develop the management and operations of 
agricultural cooperatives within their jurisdictions;
e. Expedite the issuance of necessary permits for the implementation of projects 
and programs of the DA, CDA, and other government agencies and 
instrumentalities for the benefit of agricultural cooperatives;
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f. 
Upon written request of the CDA, assist in the resolution of inter-cooperative 
disputes among agricultural cooperatives operating within their localities;
g. Facilitate and conduct seminars, trainings, and conferences necessary for the 
organization, registration, management, and operations of agricultural 
cooperatives, in coordination with cooperative federations and unions; an
h. Provide technical assistance and skills training for farmers, farm workers, and 
fisherfolk to engage in income-generating activities.
CHAPTER IX 
OTHER PROVISIONS
Sec. 41. Appropriation- The amount necessary for the initial implementation of 
this Act shall be taken from the current fiscal year's appropriation of the DA and DTI. 
Thereafter, the amount necessary to carry out the provisions of this Act shall be 
appropriated in the General Appropriations Act of the year following its enactment into 
law.
Sec. 42. Impiementing Ruies and Reguiations. - Within ninety (90) days from 
the effectivity of this Act, the DA, in coordination with the relevant departments and 
agencies, and in consultation with agricultural cooperatives, shall issue the necessary 
rules and regulations to implement this Act.
Sec. 43. Joint Congressionai Oversight Committee on Agricuiturai Cooperatives. 
- There is hereby created a Joint Oversight Committee to oversee, monitor, and 
evaluate the implementation of thie Act.
The Oversight Committee shall be composed of five (5) members each from 
the Senate and House of Representatives, including Chairpersons of the Committee 
on Agriculture and Cooperatives of both Houses. The membership of the Committee 
of every House shall have at least two members from the minority.
Sec. 44. Annuai Reports. - The Council shall submit an annual report to the 
Congress of the Philippines on the progress of its projects and plans and offer 
recommendations for possible legislation.
Sec. 45. Sunset Review. - Within five (5) years after the effectivity of this Act, 
or as the need arises, the Joint Congressional Committee on Agricultural Cooperatives 
shall conduct a sunset review.
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For purposes of this Act, the term "sunset review" shall mean a systematic 
evaluation of the accomplishments and impact of this Act, as well as the performance 
and organizational structure of its implementing entities, for purposes of determining 
remedial legislation.
Sec. 46. Repealing Clause. - All laws, decrees, executive orders, administrative 
orders, rules and regulations or parts thereof inconsistent with the provisions of thi 
Act are hereby repealed or modified accordingly.
Sec. 47. Separability Clause. - In case any provisions of this Act or any portion 
thereof is declared unenforceable, illegal, or unconstitutional by a competent court, 
other provisions shall not be affected thereby.
Sec. 48. Effectivity Clause. - This Act shall take effect fifteen .(15) days after 
its publication in the Official Gazette or in two (2) newspapers of general circulation.
Approved,
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