Republic of the Philippines i oan 24 0c1 o
HOUSE OF REPRESENTATIVES i! pes 2014
Quezon City, Metro Manila he Fishy. |)

SIXTEENTH CONGRESS
Second Regular Session

House Bill No, 0118

Introduced by AKBAYAN’Representatives Walden F. Bello
and Ibarra M. Gutierrez III

EXPLANATORY NOTE

A Filipino is secured if he has sovereignty. ‘This bill requires the
Department of Agriculture (DA) to define and put together a Food
Requirement Plan for Filipinos, ensuring that all Filipinos are able to
eat from what is locally produced first before exporting our produce to
the international market. As such, if there is a shortage in the total
supply of rice, fish, livestock and poultry, vegetables and fruits needed
to feed the total number of Filipinos, the Department of Trade and
Industry shall be able to roll out a trade plan to source out the same
from our trading partners,

Consequently, our export and import policies as a nation shall
be adjusted to what is needed by our people first before we send our
raw materials and produce to other nations. The measure also
corrects the organizational dysfunction of the National Food Authority
by decoupling its proprietary and regulatory functions. Under this
measure, a new trading entity is created known as the National
Strategic Food Supply and Reserve Corporation or NSFSRC. The
regulatory function of the then NFA will be given to the Department of
Agriculture

With the Food Requirement Plan, the DA is able to plan which
province should produce what, enhance its competitiveness through
infrastructure support, monitor, distribute and market the produce,
ensuring supply chain management is enforced in order to identify
gaps in terms of the food requirement per province.

This measure is based on the principle of food sovereignty,
which is the “right of peoples, communities, and countries to define
their own agricultural, labor, fishing, food and land policies, which are
ecologically, socially, economically and culturally appropriate to their
unique circumstances. It includes the true right to food and to
produce food, which means that all people have the right to safe,


nutritious and culturally appropriate food and to food producing
resources and the ability to sustain themselves and their societies.”
Food security on the other hand, refers to “the availability of food and
one's access to it. A household is considered food-secure when its
occupants do not live in hunger or fear of starvation.”

‘The Philippines is a gifted country. It is surrounded by water,
the soil is still relatively fertile; several agricultural research and
development schools abound; an active poultry and livestock industry
is evolving.

Passage of this measure is earnestly requested.

WALDEN F. BELLO

IB. M. GWNERREZ IT



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

51138

House Bill No.

Introduced by AKBAYAN Representatives Walden F, Bello
and Ibarra M, Gutierrez III

AN ACT
PROVIDING FOR A SYSTEM OF DETERMINING THE MINIMUM
FOOD REQUIREMENTS OF FILIPINOS, REORGANIZING THE
NATIONAL FOOD AUTHORITY INTO ESTABLISHING THE
NATIONAL STRATEGIC FOOD SUPPLY AND RESERVE
CORPORATION AND FOR OTHER PURPOSES.

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

SECTION 1. Short Title. - This Act shall be known and cited as
the “Food for Filipinos First Act of 2014.”

I. DECLARATION OF POLICY

SEC. 2. Statement of Policy ~ It is hereby declared the policy of
the State to promote a just and dynamic social order that will ensure
the prosperity and independence of the nation and free the people
from poverty through policies that provide adequate social services,
promote full employment, a rising standard of living, and an improved
quality of life for all.

Il. | NON-CONVERSION OF DECLARED STRATEGIC
AGRICULTURE AND FISHERIES DEVELOPMENT ZONE AND
CREATION OF LOCAL PROTECTED FISHING ZONES IN COASTAL
MUNICIPALITIES AND CITIES

SEC 3. Non-conversion of Lands in Strategic Agriculture and
Fisheries Development Zone within declared Network of Protected Areas
Itural and Agro-industrial Development.- ‘There shall be no
conversion of lands already identified by the Department of
Agriculture through the Bureau of Soils and Water Management in



coordination with the National Mapping and Resource Information
Authority and included under the Strategic Agriculture and Fisheries
Development Zone (SAFDZ) as provided for under Republic Act No.
8435,

SEC. 4. Identification, Delineation and Establishment of Local
Protected Fishing Zones in Coastal Municipalities and Cities. = In
furtherance of Republic Act No. 8550 and within six months from the
effectivity of this Act, all coastal municipalities and cities shall
identify, delineate and establish Local Protected Fishing Zones or
LPFZ within their respective jurisdictions, after conducting
consultations within the affected barangays. The LPFZ must have a
minimum area of ten hectares: Provided that in areas where the total
area of municipal waters is fifteen hectares or less, the LPFZ shall
comprise 20% of municipal waters.

‘The Department of Agriculture shall maintain a registry of LPFZ
nationwide while the provincial government shall issue the necessary
rules and regulations in LPFZ, determining the catch ceilings,
maximum sustainable yield as well as closed seasons. These
information shall be included in the National Food Requirement Plan
(NFRP) of the province, which the provincial government shall submit
to the Department of Agriculture as provided for under Section 6 of
this Act.

II. SYSTEM OF DETERMINING THE NATIONAL FOOD
REQUIREMENTS OF FILIPINOS

SEC. 5. Determination of Food Requirements of Filipinos, - The
Departments of Agriculture and Trade and Industry shall formulate
together the National Food Requirement Plan (NFRP) where the food
requirements of Filipinos are identified and production delineated
among provincial producers of specific food requirements: Provided
That, a schedule of production is agreed upon among competing
provinces based on specific timelines and weather patterns ensuring
that shortfalls arising from weather disturbances in one location can
be augmented by another: Provided further, That provinces classified
as poor, based on its Human Development Index, would have the
priority in the allocation of produce based on their defined
requirements: Provided finally That any shortfall in the NFRP that
cannot be supplied by the domestic market shall be sourced from
trading partners in the region pursuant to an Agricultural Importation
Inventory as established by the Department of Agriculture in
consultation with the National Strategic Food Supply and Reserve
Corporation (NSFSRC) as provided for in Section 14 of this Act .

SEC. 6. Local Governments ~ It shall be the responsibility of the
provincial local chief executive to submit the Provincial Food


Requirement Plan to the Department of Agriculture every March of the
previous year so that the Department of Agriculture, in collaboration
with the Department of ‘Trade and Industry, can formulate the NFRP
before the budget call for purposes of authorization and inclusion in
the proposed budget of the succeeding year.

IV. AGRICULTURAL INFRASTRUCTURE INVENTORY

SEC. 7. Agricultural Infrastructure Support Map (AISM). - ‘The
Departments of Agriculture, ‘Trade and Industry and Public Works
and Highways shall map the infrastructure requirements of each
province producing the food requirements as provided for under the
NFRP. The AISM shall be the basis for the allocation of the
Agricultural Infrastructure Support Fund, hereinafter referred to as
AISF, among provinces and pursuant to such guidelines as provided
for under the General Appropriations Act per fiscal year.

‘The infrastructure requirement as provided for in this Section
shall cover, among others, farm-to-market and farm-to-port roads;
irrigation system; post harvest facilities; cold storage facilities in every
major port; food processing stations and food packaging centers.

SEC. 8. Free Use by Accredited Farmers Cooperatives and
Organizations of Irrigation Systems Constructed, Funded and
Maintained by the National Government. - All irrigation system built by
the National Government shall be free to all accredited farmers
cooperatives and organizations in SAFDZs: Provided That, the National
Irrigation Authority (NIA) shall make a national inventory of all
irrigation systems and facilities three months after the effectivity of
this Act and shall establish and maintain a public, online repository
known as the National Irrigation Database (NID) which shall be
updated annually, before planting season: Provided further That, the
NID shall include municipal, provincial, regional and national
information on: a) status of irrigation system, including the area and
crop covered as well as the type of existing irrigation facilities; b)
irrigation balances; o)listing of irrigation facilities for rehabilitation:
Provided finally That: the NIA shall submit a copy of the NID to both
chambers of Congress on April of every year, including an
accomplishment report on the implementation of Republic Act No.
6978.

V. BENEFITS FOR SMALL FARMERS, AGRICULTURAL
PRODUCERS IN SAFDZs, FISHERFOLKS IN LPFZ AND ACCESS TO
CREDITS

SEC. 9. Social Support and Protection for Farmers, Agricultural
Producers and Fisherfolks, - Every farmer and agricultural producer


in SAFDZs and fisherfolks in LPFZ shall have access to agricultural
scholarships covering two of his/her children: Provided That, the
courses or trainings to be undertake are in the list of courses and
trainings pre-approved by the Department of Agriculture as relevant
and/or related to agriculture and agricultural production, The
scholarship shall cover the cost of tuition fee and books plus a
minimum subsistence allowance.

SEC. 10. Courses Eligible for Agriculture Scholarship. - The
Department of Agriculture shall develop the list of degree and training
courses eligible for agriculture scholarship in consultation with the
Department of Science and Technology, the Commission on Higher
Education, the Department of Labor and Employment and the
Department of Social Welfare and Development and two
representatives from national farmer’s and fisherfolks organizations to
be appointed by the President. The list shall be reviewed and updated
every five years, beginning from the implementation of the law.

SEC. 11. SUCs, TESDA and other Government Training
Institutions. - Agricultural and marine state universities and other
government training institutions, together with TESDA shall set aside
5% of its scholarships on agriculture, fishing and similar fields of
specialization to children of farmers and fisherfolks in accordance
with Section 9 of this Act: Provided That, the latter meet the regular
entrance requirements for students.

Children of farmers who are not able to meet the qualification
requirements of agricultural and marine state universities and
colleges may have access to agriculture related training and certificate
courses through TESDA or any government institution providing such
trainings: Provided That, such trainings are included in the list of
courses eligible for scholarship as defined in Section 11 of this Act.

SEC. 12. A Nation’s Gratitude for Senior Farmers and
Fisherfolks. - Farmers and fisherfolks aged sixty years old and above,
doing work in SAFDZ and LPFZ respectively, shall have a monthly
pension of Php!,500.00 per month from the National Government and
Php500.00 a month from the provincial local government. The value
of the monthly pension from the National Government shall be
reviewed and adjusted for inflation every three years by the
Department of Social Work and Welfare in consultation with the
Departments of Agriculture, Finance, Budget and Management. The
monthly pension shall be released by the Department of Social Work
and Welfare every first Thursday of every month.

SEC. 13. Special Credit Window for Small Farmers and
Fisherfolks in Rural Banks. - All rural banks shall create a special
window extending micro-credit program for farmers in SAFDZs and
fisherfolks in LPFZ. The funds allocated for the special credit window
shall be equivalent to at least fifty percent of their agri-agra funds:


Provided That, thirty percent of the loanable resources earmarked for
the special credit window shall be made exclusively available to small
women farmers: Provided finally That, funds allocated to the special
credit window herein provided shall constitute compliance to Republic
Act No. 10000, otherwise known as the Agri-Agra Reform Credit Act of
2009.

VI. MAKING LOCAL PRODUCE COMPETITIVE

SEC. 14. Removal of Subsidies - The Department of Agriculture
shall harmonize subsidies on export-oriented agriculture and transfer
the same to grains and vegetable farmers and livestock growers.

SEC. 15. Anti-Smuggling and Dumping Task Force in the
Department of Agriculture. - An Anti-Smuggling and Dumping ‘Task
Force is hereby created under the Department of Agriculture who
shall effect seizure of smuggled and dumped agricultural products for
distribution to provinces classified as poor per its Human
Development Index.

VII. ESTABLISHMENT OF THE NATIONAL STRATEGIC FOOD
SUPPLY AND RESERVE CORPORATION

SEC. 16. Reorganization of the National Food Authority. - To
principally identify provinces based on their leading agricultural
produce as well as ensure that adequate supply of key food
requirement can be sourced out, in the event of a natural calamity,
from other provinces by increasing its production and execute the
foregoing policy, goals and objectives, there is hereby created a body
corporate known as the National Strategic Food Reserve Corporation
(NSFRC}, which shall be attached to the Department of Agriculture.

SEC. 17. Board of Directors. - The powers and functions of the
NSFRC shall be vested in a Board of Directors, which shall have the
responsibility of formulating a comprehensive supply and reserve
program of the food grains, fishing and vegetable industry.

The Board shall be composed of a Chairman, President, and
three (3) Members who shall be Filipino citizens, at least thirty-five
(35) years of age, with sufficient experience in’ agri-business and
management, and of proven honesty, integrity and competence. Both
the Chairman and the President shall be appointed by the President of
the Philippines from nominees to be recommended by the Secretary of
Agriculture within thirty (30) days from the creation of the NSFRC.

Within the same period, the Secretaries of the Agriculture, Social
Welfare and Development, and Trade and Industry shall recommend


fifteen (15) nominees from which the President of the Philippines shall
choose the remaining three (3) members of the Board. The first
member shall serve for a term of three (3) years, the second member
for two (2) years, and the third member for one (1) year. Subsequent
vacancies in the Board shall be filled up from a list to be submitted by
the Secretaries consisting of three (3) nominees for each vacancy, from
which the President of the Philippines shall choose a replacement to
serve for a term of three (3) years.

Within thirty (30) days from the submission of the list of
nominees, the President of the Philippines shall constitute the Board.
The Board shall meet at least once a month on any date to be
determined by the Chairman; Provided, That the Chairman may
convene special meetings to discuss any matter needing immediate
resolution. The Board shall be entitled to a per diem for each meeting
actually attended by them and other remuneration as may be
determined by the Board in accordance with existing policies of the
government.

SEC. 18. Organization. - Within ninety (90) days from the
constitution of the Board, it shall approve the NSFRC's organizational
structure, and salary and staffing pattern. For this purpose, the salary
standardization law shall be applicable, except with respect to the
authority of the Board to give performance incentives to employees of
the NSFRC; Provided, That performance incentives may only be
allowed if the NSFRC registers a profit and their yearly cost does not
exceed the equivalent of 10% of the NSFRC's net income before taxes
nor 100% of the gross pay of its employees.

The President shall have the authority to appoint, promote,
transfer, assign, reassign, remove, suspend or otherwise discipline
officers and employees of the NSFRC as may be delegated to him by
the Board.

SEC. 19. Management. - The President shall direct and manage
the affairs of the NSFRC subject to the policy formulations of the
Board. The President shall receive the same salary and emoluments of
a Department Secretary.

‘There shall be two (2) Executive Vice Presidents appointed by the
Board for a term of three (3) years who shall assist the President in
the performance of his functions. Either of the Executive Vice
Presidents shall exercise the powers and functions of the President in
his absence. The Executive Vice Presidents shall receive the same
salary and emoluments of a Department Undersecretary.

The Executive Vice Presidents and Vice President shall be citizens
of the Philippines, at least thirty-five (35) years of age, of proven
honesty and integrity and of recognized managerial competence.


SEC. 20. Powers and Functions. - The NSFRC shall exercise the
following powers and functions:

a) To undertake the duty and tariff-free importation of rice for the
government in order to maintain the appropriate volume of the
Strategic Rice Reserve and Government Rice Buffer Stock by July 1 of
each year;

b) To own, lease, acquire by purchase or otherwise, hold, sell or
dispose of stocks or bonds or any interest in either or any obligation
or evidence of indebtedness of any person, partnership, or
corporation;

c) To issue debt instruments that are agri-agra eligible and
guaranteed by the national government up to a maximum amount of
Five Billion Pesos (P5,000,000,000), beyond which the approval of the
President of the Philippines shall be required;

d) To own, lease, operate or otherwise hold land, buildings,
equipment, facilities and such other properties as may be necessary to
carry out its functions;

e) To establish its internal organization and fix the remuneration,
emoluments, allowances and other benefits of its officers and
employees;

f) To exercise the rights and powers of a domestic corporation;
and Subject to the guidelines to be formulated by the Board, to
negotiate with private or government entities in the business of
trading, marketing, importing and exporting of commodities

SEC. 21. Capitalization. - The NSFRC shall have a total
authorized capitalization of ‘Fifteen _—BBillion _— Pesos
(Php15,000,000,000.00) consisting of One Hundred Fifty Million
(150,000,000) shares with par value of One Hundred Pesos (PI00) per
share. From this amount Twelve Billion Pesos (Php12,000,000,000.00)
shall be in the form of assets from the National Food Authority,
hereinafter referred to as NFA, and Three Billion Pesos
(Php3,000,000,000.00) shall be in the form of cash to be appropriated
by the national government over a period not exceeding ten (10) years.
The Department of Budget and Management (DBM) shall include
annually during the three (3) year transition period the amount of Five
Hundred Million (P500,000,000.00) in the President's Budget
submitted to Congress.

SEC. 22. Assets and Liabilities. - All assets and liabilities of the
NFA not transferred to the NSFRC shall be retained and administered,
disposed of and liquidated by the NFA itself, which shall continue to


exist as the NFA Board of Liquidators (BOL). The NFA-BOL shall
receive budgetary support from the national government and be
manned by personnel detailed from the NFSRC. It shall be deemed
abolished upon full disposition of assets and liquidation of liabilities of
the NFA within a period not to exceed three (3) years, after which all
remaining assets and liabilities shall be deemed transferred to the
national government.

Assets pertaining to the regulatory, developmental and research
functions of the NFA shall be transferred to the Department of
Agriculture,

VIII. FINAL PROVISIONS

SEC. 23. Implementing Rules and Regulations - The Secretary of
Agriculture, in collaboration with the Secretary of Trade and Industry
shall promulgate such rules and regulations as may be necessary to
implement the provision of this Act within sixty (60) days after
approval of this Act.

SEC. 24, Repealing Clause - All laws, decrees or executive
issuances and any rules and regulations or any part thereof, which
may be inconsistent with any of the provisions of this Act, are hereby
deemed repealed, amended or modifies accordingly.

SEC. 25. Effectivity. - This Act shall take effect fifteen (15) days
after its complete publication in two (2) newspapers of general
circulation.

Approved,

10