TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. No. S42
c( i: -
25 AUG-4 P5:06
RKEIVtD ev.
Introduced by Senator Jinggoy Ejercito Estrada
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
Corn is one of the country's main crops. In fact, most of the country's 
agricultural lands are devoted for the production of corn (17.1%), alongside palay 
(32%) and coconut (24.3%)1. Corn ranks third among all agricultural crops in terms 
of average Gross Value added (GVA) from 2010 to 2019, the first two major 
commodities being rice and bananas. In terms of volume, corn (of yellow and white 
varieties) belongs to the top 5 crops with the biggest production which includes 
sugarcane, palay, coconut, and banana.
Volume of corn production (in '000 metric tons)2
2021
2022
2023
Sugarcane
26,277.4
23,455.4
21,649.1
Palay
19,960.2
19,756.4
20,059.6
Coconut
14,717.3
14,931.2
14,892.6
Banana
9,091.3
9,013.3
9,019.0
Yellow corn
6,057.8
6,088.9
6,367.6
White corn
2,242.5
2,116.7
2,037.4
1 Philippine Development Plan 2023-2028
2 Department of Agriculture Annual Reports for 2022 and 2023


Unfortunately, despite its crucial importance in the domestic agriculture, the 
corn industry is faced with serious challenges. According to a 2022 discussion paper 
by the Philippine Institute of Development Studies (PIDS)3, the industry is dominated 
by small farmers (approximately 82%) wherein the average farm size is only 0.54 
hectares.
"This in turn negatively impacts the productivity of corn 
producers due to the inability of farmers to achieve economies of scale.
The Philippines has one of the lowest corn yield per hectare 
among the selected ASEAN countries at only 4.215 metric tons 
(mt) per hectare. This figure is approximately 1 mt lower than the most 
efficient ASEAN corn producer, which is Indonesia with a productivity 
of 5.2 mt per hectare. Consequently, given the relatively low 
productivity, corn farming is considered as one of the poorest 
among the agricultural sectors. [T]he corn industry has the 
second highest poverty incidence among various agricultural 
activities at 45.12 percent in 2018." (emphasis supplied)
Moreover, corn price data on selected Asian countries show that Philippines is 
at the upper bound of corn price (USD 0.42 to 0.44 per kg), followed by China (USD 
0.28 to 0.38 per kg), Vietnam (USD 0.22 to 0.29 per kg), and Thailand (USD 0.19 to 
0.24 per kg)4. Considering that corn (particularly yellow corn) is mainly used as 
livestock feed, its price directly drives the price of pork and chicken meat.
This measure aims to further develop the corn industry, address the persistent 
ills encountered by this crucial sector toward supply sufficiency, and enhance its 
competitiveness with our regional counterparts. Ultimately, this bill which was 
reported out by the Senate Committee on Agriculture, Food and Agrarian Reform
3 "Is Agriculture and Fisheries Ascending the Value-Added Ladder? The State of Agricultural Value Chains in the 
Philippines." Karlo Fermin S. Adriano and Lourdes S. Adriano.
https://pidswebs.pids.gov.ph/CDN/document/pidsdps2218.pdf?fbclid=lwAR2X6TmFA92e FVKx8VTEpQvu2bA
0UlD6z-ETs4AMBilawRvl2WslH3ZVFw
4 https://www.pids.gov.ph/details/news/in-the-news/opening-remarks-on-vellow-corn-bill-hearing


during the 19th Congress, seeks to ensure food security for all Filipinos through 
strengthened and more comprehensive support to our local farm workers.
In view of the foregoing, the approval of this bill is earnestly sought.
I
GGOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
rjiiKf nf i'i/ ■
S. No.
)
SENATE
842
25 AUG -4 P5 :06
RiTEfVtiDB'
Introduced by Senator Jinggoy Ejercito Estrada
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:
1 
Section 1. Short Title. - This Act shall be known as the '‘'Philippine Corn Industry
2 
Development Act.
3 
Sec. 2. Declaration of Policy. - It is the policy of the State to promote the
4 
inclusive development and competitiveness of the corn industry, particularly among
5 
smallhold farmers, to increase the supply of yellow corn, white corn and other
6 
indigenous corn varieties to enhance the availability and affordability of corn for the
7 
feeds industry and for human consumption. It is likewise the policy of the State to
8 
increase the income of farmers and farm workers to alleviate rural poverty through
9 
enhanced production efficiency and efficient post-production facilities.
10 
Towards this end, the State shall nurture an enabling environment and establish
11 
responsive government policies and support programs for the corn industry, with
12 
primary focus on the smallhold corn farmers.
13 
The State shall be committed to providing necessary support and incentives to
14 
build stronger partnerships and cooperation with the private sector in recognition of
15 
their vital role in achieving the objectives of this Act.
16 
Sec. 3. Definition of Terms. - As used in this Act:


1 
a) Corn refers to yellow corn for animal feeds, and white corn and other
2 
indigenous corn varieties for human consumption;
3 
b) Feeds refers to a single or combination of ingredients, supplements, and
4 
additives by specific formula to be fed directly to animals which is capable
5 
of providing the nutritional requirements in order to sustain life, promote
6 
growth, production, and reproduction; and
7 
c) Smallhold Farmer refers to a farmer owning or cultivating three (3) hectares
8 
or less of farmland.
9 
Sec. 4. Corn Industry Development Roadmap. - The roadmap shall set the
10 
strategic direction and key initiatives of the Corn Industry Development under this Act.
11 
It shall be crafted in consultation with relevant stakeholders that include but not
12 
limited to smallhold farmers, feed processors, livestock farmers, regulatory offices,
13 
and academe. It shall be finalized within sixty (60) days from the effectivity of this Act
14 
and updated every five (5) years thereafter.
15 
The Bureau of Plant Industry, together with the government agencies cited in
16 
this Act, shall spearhead the crafting of the roadmap.
17 
Sec. 5. Designation of the Bureau of Riant Industry (BPI); Creation of a BPI
18 
Corn Unit and BPI Field Offices. - The BPI is hereby designated as the implementing
19 
agency of this Act. Towards this end, the BPI is hereby authorized to establish and
20 
maintain a Corn Unit at its main office which shall be headed by the BPI Director. It
21 
shall also establish BPI field offices in corn production areas designated in this Act.
22 
Both shall derive budgetary support from the Corn Fund.
23 
The Corn Unit shall also be the Corn Program Management and Coordinating
24 
Office (PMCO) which shall serve as the planning and administrative secretariat in the
25 
implementation of this Act.
26 
Sec. 6. Powers and Functions - lr\ addition to its existing powers and functions
27 
as the premier government agency in the plant industry, the BPI shall have the
28 
following powers and functions under this Act:
29 
a) Manage, supervise and monitor the Corn Fund under Sections 8 and 9 of
30 
this Act;
31 
b) In partnership with the Bureau of Agricultural Research (BAR) and the
32 
corn research stations in corn provinces designated herein, establish a


1 
network of research institutions engaged in corn varietal improvement,
2 
propagation, and distribution;
3 
c) Establish and manage a corn gene bank of all the corn varieties developed
4 
under this Act, which shall be kept, protected, accessed and utilized for the
5 
implementation of this Act, especially those funded and developed by the
6 
BAR; and
7 
d) Establish a reliable, efficient and holistic corn industry database
8 
management system which shall cater to the needs of the corn industry,
9 
particularly the corn production areas in this Act.
10 
Sec. 7. Corn Production Areas. - The provinces of Isabela, Bukidnon,
11 
Pangasinan, Quirino, Camarines Sur and other provinces as may be later identified by
12 
the BPI, are designated as corn production areas and shall be the beneficiaries of the
13 
Corn Fund under this Act. Their designation is based on historical corn production data
14 
of the country and climatic factors.
15 
The identified provinces shall share to other provinces, through the BPI field
16 
offices, quality corn seeds and feeds they produce. The BPI shall draft guidelines for
17 
the operationalization of sharing and distribution with other provinces.
18 
Sec. 8. Creation of the Corn Competitiveness Enhancement Fund (Corn Fund).
19 
- In addition to the regular budget from the annual General Appropriations Act (GAA)
20 
of the agencies herein mentioned, there is hereby created a Corn Competitiveness
21 
Enhancement Fund for the use of these agencies.
22 
The Corn Fund shall consist of an annual appropriation of Three billion pesos
23 
(P3,000,000,000.00) sourced from tariff collections on imported corn, feed wheat,
24 
feeds and other products and ingredients for feeds for the fraction of the year and for
25 
the next ten (10) years following the effectivity of this Act.
26 
Corn Imports include imported products under the following HS headings or
27 
2022 AHTN Codes, and Descriptions:
28 
10.05 
Maize (corn).
29 
1005.90.90 - - Other
30 
1005.90.90.100 — In-Quota
31 
1005.90.90.200 — Out-Quota


1 
Feed Wheat Imports include imported products under the following HS
2 
headings or 2022 AHTN Codes, and Descriptions:
3
4
10.01
Wheat and meslin.
— Other
5
1001.99.91
- - Meslin
6
1001.99.99
- - Other
7
Feeds and Other Products and Ingredients for Feeds Imports include imported
8
products under the following FIS headings or 2022 AFITN Codes, and Descriptions:
9
10.03
Barley
10
1003.10.00
Seed
11
1003.90.00
Other
12
10.04
Oats
13
1004.10.00
Seed
14
1004.90.00
Other
15
10.07
Grain Sorghum
16
1007.10.00
Seed
17
1007.90.00
Other
18
19
20 
21 
22
23
24
25
26
27
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29
30
31
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23.01 Flour, meals and pellets, of meat or meat offal, of fish or of crustaceans, 
molluscs 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,
molluscs 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
23.02Bran, sharps, and other residues, whether or not in the forms of pellets, 
derived from the sifting, milling or other working of cereals or of 
leguminous plants.
2302.10.00 - Of maize (corn)
2302.30 
- Of Wheat:
2302.30.10 - - Brans and pollards


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15
16
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23
24
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2302.30.90 - - other
2302.40 
- Of other cereals:
2302.40.10 - Of rice
2302.40.90 - Other 
2302.50.00 - Of leguminous plants
23.03 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 peliets
2303.10 
-Residues of starch manufacture and similar residues:
2303.10.10 - - Of manioc (cassava) or sago
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 erucic acid colza seeds 
2306.49 
- - Other:
2306.49.10 — Of other rape seeds


1 
2306.49.20 — Of other colza seeds
2 
2306.50.00 - Of coconut or copra;
3 
2306.60 -Of palm nuts or kernels;
4 
2306.60.10 - - Ground or in the form of pellets
5 
2306.60.90 ~ Other
6 
2306.90 
- Other:
7 
2306.90.10 - Of maize (corn) germ
8 
2306.90.90 - Other;
9 
23.07 2307.00.00 Wine lees; argol.
10 
23.08 2308.00.00 Vegetable materials and vegetable waste, vegetable
11 
residues and by-products, whether or not in the form of pellets, of a kind
12 
used in animal feeding, not elsewhere specified or included
13 
23.09 Preparations of a kind used in animal feeding.
14 
2309.90 
- Other
15 
--Complete feed:
16 
2309.90.11 — Of a kind suitable for poultry
17 
2309.09.12 — Of a kind suitable for swine
18 
All tariff collections shall be automatically credited to a special account for Corn
19 
Industry Development in the general fund of the national treasury which shall be in
20 
place within forty five (45) days from the effectivity of this Act: Provided, That if the
21 
tariff collection exceeds Three billion pesos (P3,000,000,000.00) in any given year
22 
within the next ten (10) years following the effectivity of this Act, the excess tariff
23 
revenue shall automatically be added to the Corn Fund of the following year and the
24 
total amount be allocated and utilized in accordance with this Act.
25 
Provided, further. That allocation and utilization of the Corn Fund shall be
26 
subject to the following guidelines:
27 
a) The recipient agency shall be accountable and responsible for the
28 
management and utilization of the said fund in coordination with other
29 
government agencies concerned. It shall provide the Secretary of the
30 
Department of Agriculture (DA) and the BPI Director with a regular report
31 
on its fund management and utilization;


1 
b) The amount allocated shall be released directly to the implementing
2 
agencies as provided for in this Act based on the objectives and plans of the
3 
Corn Industry Development Roadmap under Section 4 of this Act: Provided,
4 
That the unutilized portion of the Corn Fund allocated to the implementing
5 
agencies shall not revert to the general fund but shall continue to be used
6 
for the purpose for which it was set aside. Fund releases charged against
7 
the said funds shall not be subject to any ceiling by the Department of
8 
Budget and Management; and
9 
c) Any program undertaken in accordance with this Act shall only be deemed
10 
complementary and supplementary to, and shall not be a replacement of
11 
any existing programs for corn farmers already implemented by the DA and
12 
other agencies concerned.
13 
Sec. 9. Allocation, Disbursement and Utilization of the Corn Competitiveness
14 
Enhancement Fund. - Subject to the usual accounting and auditing rules and
15 
regulations, the Corn Fund shall be allocated, disbursed and utilized as follows: Eighty
16 
percent (80%) for yellow corn production; Twenty percent (20%) for white corn and
17 
other indigenous corn varieties, which shall be respectively divided by both as follows:
18 
a) Forty percent (40%) - 23% for post-production, 15% for mechanization of
19 
corn farms, to be implemented by PHILMECH as grant in kind to eligible
20 
farmers' associations or organizations, registered corn cooperatives, and
21 
local government units (LGUs) in the form of provision of corn farm
22 
equipment such as corn planters, tillers, farm tractors, forage choppers,
23 
rotary seeders, power/boom sprayers, fertilizer spreader/applicator,
24 
harvesters, corn shellers, mechanical dryers, moisture meters, feed
25 
processors, and the establishment and improvement of corn post-harvest
26 
centers (including corn mills, waste utilization facilities and equipment, and
27 
corn-silage facilities), and warehouses and/or silos, and 2% for Program
28 
Management Office (PMO): Provided, That PHILMECH shall endeavor to
29 
develop and utilize local talents and resources in the manufacturing and
30 
provision of the foregoing equipment, tools and facilities;
31 
b) Twenty percent (20%) for provision of seeds and fertilizers, to be
32 
implemented and/or supervised by the BPI: Provided, That in the


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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;
c) 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 Corn 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 corn farmers into formal groups, 
cooperatives or associations. The fund shall be utilized by the Agricultural 
Training Institute (4%), PFIILMECH (3%) and DA-National Corn Program 
(2%); The PFIILMECFI 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 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 corn varieties for the 
development and improvement of resistance to biotic and abiotic


1 
stresses, and development and commercialization of high yielding and
2 
stress resistant open pollinated varieties and hybrids;
3 
iii) Pest Management thru development of rapid detection of aflatoxin
4 
and other pests;
5 
iv) Mechanization thru development of low-cost postharvest machinery
6 
that will reduce losses;
7 
v) 
Sustainable soil and water management in corn production areas;
8 
Vi) Food and feed product development and commercialization for
9 
livelihood upliftment; and
10 
vii) Development of training and learning modules.
11 
Sec. 10. Beneficiaries/Grantees of Corn Fund. - Within one hundred eighty
12 
(180) days from the effectivity of this Act, the DA, in consultation with farmers'
13 
cooperatives and organizations and LGUs, shall validate and update the master list of
14 
eligible beneficiaries in corn production provinces in this Act to ensure that those listed
15 
are corn farmers, cooperatives, associations, and organizations.
16 
The beneficiaries of the Corn Fund are smallhold corn farmers listed in the
17 
Registry System for Basic Sectors in Agriculture (RSBSA), and corn farmer
18 
cooperatives, associations, or organizations accredited by the DA in the designated
19 
corn production provinces: Provided, That preferential attention shall be given to
20 
smallhold corn farmers who are members of cooperatives, associations or
21 
organizations.
22 
Sec. 11. Review of the Corn Competitiveness Enhancement Fund. - The
23 
following mandatory review of the Corn Fund shall be performed:
24 
a) The Philippine Institute for Development Studies (PIDS) shall conduct
25 
impact evaluation of the Corn Fund program on corn productivity on the
26 
third (3rd), sixth (6th) and ninth (9th) year of the effectivity of this Act;
27 
b) The percentage allocation of the Corn Fund will be reviewed on the third
28 
(3rd) year from the effectivity of this Act for possible revisions should
29 
intervention priorities change; and
30 
c) On the ninth (9th) year from the effectivity of this Act, a mandatory review
31 
shall be conducted by the Congressional Oversight Committee on
32 
Agricultural and Fisheries Modernization (COCAFM) to determine whether


1 
the Corn Fund and its utilization as provided for under this Act shall be
2 
continued, amended, or terminated. The increase or decrease in farmers'
3 
incomes shall be a primary benchmark in determining the effectiveness of
4 
the interventions under the program and its possible extension. In view of
5 
its oversight function, the COCAFM, at any time, may conduct an
6 
assessment of the implementation of programs and utilization of Corn Fund
7 
as directed under this Act.
8 
Sec. 12. Lifting of Export Restriction on Corn. - All laws, rules, regulations,
9 
guidelines, and other issuances imposing export restrictions on corn, except those
10 
related to the prevention and spread of plant, animal pests and diseases, are hereby
11 
lifted and/or repealed.
12 
Sec. 13. Disposition of Corn Fund under the National Food Authority (NFA). -
13 
The NFA shall liquidate and report on the accomplishment of its existing corn
14 
marketing assistance program. Its corn development fund, enhanced electronic
15 
trading system for corn, created under Presidential Memo No. 468 dated March 17,
16 
1998, held in trust by the NFA, is hereby dissolved and the remaining money balance
17 
is transferred to the BPI for inclusion in the Corn Fund.
18 
Sec. 14. Powers of the President -The President is hereby empowered to:
19 
a) Revise or adjust existing rates of customs duties on corn, feed wheat, feeds,
20 
and other products and ingredients for feeds imports up to their respective
21 
bound rates committed by the Philippines under the WTO agreement on
22 
agriculture and under ASEAN Trade in Goods Agreement, including any
23 
necessary change in classification applicable to their importation, subject to
24 
the provisions of the Customs Modernization and Tariff Act (CMTA):
25 
Provided, That the adjustment is time-bound and that the power herein
26 
delegated to the President shall only be exercised when Congress is not in
27 
session: Provided, further. That any order issued by the President adjusting
28 
the applied tariff rates shall take effect fifteen (15) days after publication;
29 
b) Allow the importation of corn, feed wheat, feeds, and other products and
30 
ingredients for feeds products at a lower applied tariff rate to address the
31 
situation in the event of any imminent or forecasted shortage, animal
32 
disease epidemic, or such other situation requiring government intervention
10


1 
for a limited period and/or a specified volume. Such order shall take effect
2 
immediately and can be issued even when Congress is in session.
3 
The power herein delegated to the President may be withdrawn or terminated
4 
by Congress through a joint resolution.
5 
Sec. 15. Separability Clause. - If any provision of this Act is declared
6 
unconstitutional, the remainder thereof not otherwise affected shall remain in full force
7 
and effect.
8 
Sec. 16. Repealing Clause. - Such other laws, presidential decrees, executive
9 
orders, letters of instruction, proclamations or administrative regulations that are
10 
inconsistent with the provisions of this Act are hereby repealed, amended, or modified
11 
accordingly
12 
Sec. 17. Effectivity. -This Act shall take effect after fifteen (15) days following
13 
the completion of its publication in the Official Gazette, or in a newspaper of general
14 
circulation.
Approved,
11