• ■1 . (
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
Ol ’
S. No.
)
SENATE
1051
25 AUG-6 P2 ;29
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
TO PROMOTE REFORESTATION AND TO INCREASE WOOD PRODUCTION 
THROUGH THE ESTABLISHMENT OF TREE GROWING
EXPLANATORY NOTE
The Philippines has long grappled with the consequences of deforestation, 
including soil erosion, biodiversity loss, water scarcity, and increased vulnerability to 
climate-related disasters. The rapid depletion of forest cover over the past decades 
has not only weakened the country's ecological resilience but has also led to the 
degradation of watersheds, declining agricultural productivity, and a shrinking supply 
of sustainable wood and forest products.
At the same time, the demand for wood continues to rise, driven by population 
growth, urban development, and industrial expansion. Unfortunately, this demand is 
often met through unsustainable means, including illegal logging and importation, 
which further exacerbate environmental and economic vulnerabilities.
This bill seeks to address these interrelated challenges through the 
institutionalization of a comprehensive tree-growing initiative that promotes 
reforestation, improves forest resource management, and boosts domestic wood 
production. By encouraging the establishment of commercial and community-based


tree farms, this measure aims to balance ecological restoration with sustainable 
economic use of forest lands.
Filed by Senator Cynthia A. Villar in the 19th Congress, this bill reflects a 
forward-looking approach to natural resource management—one that not only 
restores forest ecosystems but also empowers local communities, upland farmers, and 
private landowners to take part in sustainable forestry.
Key features of the bill include:
1. 
The promotion and support of tree-growing programs on both public and 
private lands, particularly in degraded and marginal areas;
2. 
The designation of specific zones for sustainable wood production and 
reforestation efforts;
3. 
The provision of technical, financial, and material support to individuals, 
cooperatives, and organizations engaged in tree growing;
4. 
The integration of tree-growing initiatives into existing government 
programs under the Department of Environment and Natural Resources 
(DENR), Department of Agriculture (DA), and other concerned agencies;
5. 
The establishment of a monitoring and incentive system to track 
progress, ensure compliance, and encourage active participation in the 
program.
This legislation recognizes that the path to long-term environmental 
sustainability must involve not just preservation, but also proactive restoration and 
responsible utilization of natural resources. By institutionalizing tree growing as a 
national priority, the bill aims to revitalize forest ecosystems, enhance carbon 
sequestration, increase local wood supply, and create green livelihoods for generations 
to come.


In view of the foregoing, the immediate passage of this bill is earnestly sought.
NGGTOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
‘f 01;
)
SENATE
S. No. 1051
25 AUG-6 P2:29
RKCLV;
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
TO PROMOTE REFORESTATION AND TO INCREASE WOOD PRODUCTION 
THROUGH THE ESTABLISHMENT OF TREE GROWING
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 "Tree Growing
2 
Agreement Act.
3 
Sec. 2. Declaration of Policy. - It is the policy of the State to promote tree farm
4 
and tree plantation development to restore denuded forests of the public domain,
5 
mitigate the effects of climate change, increase wood supply, encourage green
6 
investments to increase livelihood opportunities in the countryside, and contribute to
7 
the overall socio-economic development and growth of the national economy.
8 
Sec. 3. Definition of Terms. -
.9 a) Crop - is a plant or plant product that can be grown and harvested for profit
10 
subsistence.
11 
b) Forest Flock - is an area of contiguous forest land measuring fifteen (15)
12 
Seconds of latitude and fifteen (15) seconds of longitude at approximately 20.7
13 
hectares per block.
14 
c) Forest Land- includes the public forest, the permanent forest or forest reserves,
15 
forest reservations, and all other lands not classified as agricultural lands,
16 
mineral lands, and national parks.


1 
d) Planted Tree - a tree planted and raised by man.
2 
e) Tree Farm - refers to any small forest land or tract of land purposely planted to
3 
tree crops.
4 
f) Tree Growing Agreement- refers to an agreement entered into by and between
5 
a natural or juridical person and the DENR wherein the latter grants to the
6 
former the right to plant and harvest trees in a tract of forest land.
7 
g) Tree Plantation - any tract of forest land purposely and extensively planted to
8 
timber crops primarily to supply the raw material requirements of existing or
9 
proposed processing plants and related industries.
10 
Sec. 4. Establishment of Tree Farms and Tree Plantations. - The Department
11 
of Environment and Natural Resources (DENR) shall identify survey and map areas
12 
suitable for the establishment of tree farms and tree plantations in forest lands. Such
13 
areas shall be called Tree Growing Agreement Areas or TGA areas. TGA areas for
14 
establishment shall be denuded and/or underutilized areas within forestlands, whether
15 
tenured or not, including ancestral lands/domains, identified as suitable for tree
16 
farming, tree plantation development, agroforestry, and other forestry and
17 
agroforestry-related economic activities. TGA establishment may be initiated by the
18 
DENR or through a request of interested parties.
19 
Sec. 5. Criteria for the Determination of Tree Growing Agreement Areas. - The
20 
minimum requirements for suitability of the area for the TGA are:
21 
a) Soil quality should be suitable for tree plantation/tree farming, and
22 
agroforestry farming;
23 
b) Slope gradient should be below 50 percent, and elevation should be below
24 
1000m above sea level (asl);
25 
c) Should not be prone to landslides or severe soil erosion; and
26 
d) Should not be identified as protected area.
27 
Sec. 6. Identification and Delineation of Tree Growing Agreement Areas. - For
28 
purposes of identification and delineation of area for TGA, the DENR shall identify
29 
denuded, idle, and/or underutilized public forest that are either tenured or untenured.
30 
These identified areas of public forest shall be divided into meridional forest blocks of
31 
fifteen (15) seconds of latitude and fifteen (15) seconds of longitude at approximately


1 
20.7 hectares per block. Such forest blocks shall be indicated in the maps publicly
2 
available in the Tree Growing Agreement Registry.
3 
Sec. 7. Tree Growing Agreement Registry. - Forest lands that had been
4 
established by the DENR as TGA area shall be recorded and made available in a public
5 
registry to be maintained at the Provincial Environment and Natural Resources Office
6 
(PENRO) and supervised by the Forest Management Bureau (FMB). Such registry shall
7 
be accessible to the public through the internet and shall contain maps showing the
8 
location of all forest lands under TGA and shall also indicate forest lands that are
9 
already under an agreement as well as those still available for application of investors.
10 
Sec. 8. Allowable Activities for the Tree Growing Agreement - Allowable
11 
activities within the Tree Growing Agreement area shall be limited to:
12 
a) Tree Plantation/Farming
13 
b) Wood Processing/Establishment of Wood Processing Plants
14 
c) Agroforestry
15 
d) Forestry/Agroforestry-Based Ecotourism
16 
Sec. 9. Tree Growing Agreement - Interested parties whether natural or
17 
juridical, may enter into a Tree Growing Agreement for the development, sustainable
18 
utilization, and management of TGA areas and forest resources within the allotted TGA
19 
area.
20 
The Agreement shall be for a minimum of two production cycles depending on
21 
the project as proposed in the development plan to be submitted to the DENR upon
22 
application for a TGA. The duration of the production cycle shall depend on the species
23 
intended to be planted as a main crop. Each cycle shall not exceed twenty-five years.
24 
The Agreement may be renewed automatically at the option of the TGA holder
25 
for another minimum of two production cycles if the TGA holder has complied with
26 
the terms and conditions of the Agreement and with existing laws.
27 
The TGA is transferrable to qualified transferees for value. The Agreement may
28 
not be cancelled except for cause and with due process by the DENR. The Agreement
29 
holder shall develop at least thirty percent (30%) of the area applied for in the first
30 
three (3) years and utilize seventy-five percent (75%) of the area within five (5) years
31 
upon issuance of the TGA. Ninety percent (90%) of the TGA area must be devoted to


1 
the primary timber or tree crop compatible to the ecological and biophysical
2 
characteristics of the area.
3 
Processing of applications and awarding and issuance of TGA shall be
4 
accomplished at the Provincial Environment and Natural Resources Office (PENRO) of
5 
the DENR and completed within one hundred and twenty (120) days from the time
6 
the complete application is submitted.
7 
Tree Growing Agreements shall be limited to a maximum of twenty-five (25)
8 
forest blocks for individuals/families, fifty (50) forest blocks, for partnerships and
9 
cooperatives, and two hundred and fifty (250) forest blocks for private and public
10 
corporations including local government units (LGUs) and government owned and
11 
controlled corporations (GOCCs).
12 
Sec. 10. Tenured Lands. - Forest lands covered by existing tenurial instruments
13 
may be amended to be covered by the Tree Growing Agreement. Such amendment
14 
shall be applied for at the DENR.
15 
Tenure holders who are no longer interested in their tenure may surrender their
16 
tenure to the DENR. They may also transfer such tenurial instrument to an interested
17 
party for conversion to TGA. Tenure holders who refuse to utilize or abandon their
18 
tenurial area may be subjected to compulsory inclusion after being notified.
19 
A Notice of Inclusion under the TGA shall be issued by DENR to inform tenure
20 
holders of compulsory coverage of the whole or portion of their unutilized or
21 
abandoned tenured areas.
22 
Sec. 11. Qualifications of Applicants. - Any natural or juridical person may apply
23 
for a Tree Growing Agreement. LGUs and GOCCs may also apply for the said
24 
Agreement. Likewise, Agreement shall be awarded transparently and equitably to both
25 
foreign and domestic investors.
26 
Sec. 12. Certifications, Permits and Licenses. - The DENR PENRO shall also
27 
coordinate with the Environmental Management Bureau (EMB), National Commission
28 
on Indigenous Peoples (NCIP), LGUs, and other government agencies for assistance
29 
in the expedited issuance of environmental permits, local permits. Certification
30 
Precondition (CP), and other permits.
31


1 
Sec. 13. Property Rights of TGA Holders. - All planted trees, and other non-
2 
timber forestry and agroforestry products produced within TGA areas shall be
3 
considered as personal property even if they are still attached to the soil. They shall
4 
also be considered as personal property of the holder within the purview of Republic
5 
Act No. 11057, otherwise known as the Personal Property Security Act, and thus may
6 
be traded or may be a subject to commodity contract, mortgage contract, and other
7 
security arrangement.
8 
All planted trees and other non-timber forestry and agroforestry products
9 
produced within the TGA areas shall be considered as crops.
10 
Sec. 14. Relaxation of Restrictions and Regulations. - In order to promote
11 
investments and generate interest in forest related activities within the TGA areas,
12 
existing laws, executive issuances, local ordinances, rules and regulations are hereby
13 
repealed, amended, and modified accordingly for holders in order to:
14 
a) Exempt from the payment of forest charges and other fees for taxes that
15 
local government units may impose;
16 
b) Provide access to development loans from public financial institutions for
17 
farm and plantation developers;
18 
c) Provide insurance coverage of plantations and plantation development
19 
equipment by the Philippine Crop Insurance Corporation (PCIC);
20 
d) Provide tax free importation of plantation development equipment, including
21 
tree nursery facilities, pursuant to Republic Act No. 10863, otherwise known
22 
as the Customs Modernization and Tariff Act (CMTA);
23 
e) Allow the expenses incurred for plantation operations to be as deductible
24 
expenses for income tax purposes, subject to the provisions of the National
25 
Internal Revenue Code of 1997, as amended: Provided, that the deduction
26 
shall only apply to the Taxable Period when the expenses were incurred;
27 
f) Allow the expenses incurred in the development and operation of a tree
28 
plantation prior to the commercial harvest to be regarded as ordinary and
29 
necessary expenses or as capital expenditure;
30 
g) Prioritize access for tree farm and plantation developers to credit assistance
31 
from government owned, controlled and/or supported financial institutions;


1 
h) No inspection of harvested trees and other crops from TGA areas at check
2 
points;
3 
i) Allow acceptance of planted trees and crops as collateral for loans in
4 
government owned or controlled banks and other financial institutions;
5 
j) Allow only a one-time inspection by the DENR PENRO prior to harvest of
6 
planted trees leading to a single clearance for harvest, processing, transport
7 
and sale both local and international;
8 
k) Exempt established tree farms and plantations from logging bans for the
9 
duration of the Agreement;
10 
I) Allow logs, lumber and other finished wood products from TGA area to be
11 
exported without restrictions in volume;
12 
m) Allow exemption from payment of Advanced Value Added Tax (VAT). The
13 
VAT shall be paid only after logs have been delivered and payment received
14 
by plantation owners;
15 
n) Include tree farming and plantation development as pioneer areas of
16 
investment under 
the Strategic 
Investments Priority Plan of the
17 
government;
18 
o) Include tree farming and plantation development in tax incentives as may
19 
be provided by existing rules and regulations of different government
20 
agencies including 
but not limited the Department of Finance and
21 
Department of Trade and Industry; and
22 
p) Include tree farming and plantation development in other investment
23 
incentive packages available for 
agriculture and agroforestry-related
24 
industries.
25 
Provided, That relevant incentives shall also apply to private tree plantations
26 
registered with the DENR.
27 
Sec. 15. Royalties and Government Share. - Royalties and government share
28 
shall be based on the stumpage value of planted trees. Stumpage value shall be
29 
computed by the DENR using a formula developed with the approval of the Tree
30 
Plantation Promotion and Policy Board.
31 
Royalties and government share shall be based on the 70% of gross revenues
32 
of the Agreement holder. The government shall get five percent (5%) royalty, the


1 
tenure holder for tenured lands shall get one percent (1%), the concerned LGU where
2 
the TGA area is located shall get five percent (5%), if there are indigenous peoples in
3 
the area, two percent (2%) shall be allotted to them, and the remaining two percent
4 
(2%) shall go to DENR's tree farm and plantation development programs and projects
5 
and carbon trading activities.
6 
Sec. 16. Dispute Resolution Mechanism. - Disputes arising from conflicting
7 
claims and other controversies related to the issuance and the implementation of the
8 
TGA shall be resolved administratively in the first instance at the DENR.
9 
Any and all disputes arising from the implementation of TGA may be submitted
10 
to arbitration in the Philippines in accordance with the relevant laws and policies. The
11 
process of arbitration shall be incorporated as a provision in the TGA that will be
12 
executed pursuant to the provisions of this Act: Provided, that by mutual agreement,
13 
the parties may agree in writing to resort to alternative modes of dispute resolution.
14 
Sec. 17. Premature termination of the agreement - Upon the premature
15 
termination of the agreement at no fault of the holder, all depreciable permanent and
16 
semi-permanent improvements such as roads, buildings, and nurseries including the
17 
planted and standing trees and other forest crops, introduced and to be retained in
18 
the area, shall be properly evaluated and the holder shall be entitled to a fair
19 
compensation thereof, the amount of which shall be mutually agreed upon by both
20 
the DENR and the agreement holder, and in case of disagreement between them, by
21 
arbitration through a mutually acceptable and impartial third-party adjudicator.
22 
Sec. 18. Tree Plantation Promotion and Policy Board. - The Tree Planation
23 
Promotion and Policy Board, referred to as the Board, is hereby created which shall
24 
be the overall policy-development body for all forest lands identified for TGA. It shall
25 
be responsible for setting the strategic direction of programs and projects and in
26 
creating an enabling policy and institutional environment TGA areas.
27 
The Board shall be composed of the following:
28 
a) Secretary of Environment and Natural Resources as Chairperson;
29 
b) Secretary of Trade and Industry as Co-Chairperson;
30 
c) One (1) representative from the wood producers;
31 
d) One (1) representative from the tree farmers;
32 
e) One (1) representative from the wood processors;


1 
f) One (1) representative from the furniture industry;
2 
g) One (1) representative from the construction industry; and
3 
h) One (1) representative from the professional organization of foresters.
4 
The principal members of the Board may designate their respective alternates,
5 
who shall be the officials next-in-rank to them, and whose acts shall be considered
6 
the acts of their principals.
7 
The presence of the Chairperson with four (4) other members of the Board
8 
shall constitute a quorum and a majority vote of the members present shall be
9 
necessary for the adoption of any issuance, order, resolution, decision or other act of
10 
the Board in the exercise of its functions. The Board shall act as a collegial body. In
11 
the conduct of meetings, the Chairperson shall not vote except to break a tie.
12 
The Board shall act on any matter for its consideration not later than thirty (30)
13 
days from the date of submission thereof.
14 
The members of the Board shall be entitled to honoraria based on existing
15 
government accounting and auditing rules and regulations. The DENR shall act as
16 
Secretariat to the Board.
17 
Sec. 19. Implementing Rules and Regulations. - The FMB of DENR shall
18 
promulgate rules and regulations to carry out the provisions of this Act within one
19 
hundred and twenty (120) days from approval hereof.
20 
Sec. 20. Repealing Clause. - All laws, decrees, executive order, executive
21 
issuances or letters of instruction, rules and regulations or any part thereof
22 
inconsistent with or contrary to the provisions of this Act are hereby deemed repealed,
23 
amended or modified accordingly.
24 
Sec. 21. Separability Clause. - If, for any reason or reasons, any part or parts
25 
of this Act shall be declared unconstitutional or invalid by any competent court, other
26 
parts of this Act not so declared shall continue to be in full force and effect.
27 
Sec. 22. Effectivity. - This Act shall take effect fifteen (15) days after its
28 
publication in two (2) newspapers of general circulation.
Approved,