TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
ot lii:' rftii'p
25 AUG 13 P6:40
S. No.
SENATE
1183
RECEIVED:!;
Introduced by Senator FRANCIS N. PANGILINAN
AN ACT
ENSURING THE DEVELOPMENT, PROMOTION, AND PROTECTION OF 
AGRICULTURAL COOPERATIVES, PROVIDING FOR THE CREATION OF THE 
BUREAU OF AGRICULTURAL COOPERATIVES, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines faces a critical food security crisis and persistent poverty among 
farmers and fisherfolk. A recent Social Weather Stations (SWS) survey (March 2025) 
indicates a near-doubling in involuntary hunger, surging from 14.2% in 2024 to 27.2% 
in 2025. Philippine Statistics Authority (PSA) data (2023) shows that farmers and 
fisherfolk are the poorest sectors, with poverty incidence estimates at 27.0% and 
27.4%, respectively.
Agricultural cooperatives are crucial to addressing these issues. Data from the 
Cooperative Development Authority (CDA) shows that cooperatives are a vital part of 
the economy, but many agricultural cooperatives struggle with fragmentation and 
limited resources. Studies from organizations like the Food and Agriculture 
Organization (FAO) consistently show that farmers who are members of cooperatives 
have better access to credit, modern technology, and markets. These organizations 
enable economies of scale by allowing small-scale farmers to collectively purchase 
inputs and sell their produce, increasing their income and reducing their costs.


This bill aims to strengthen agricultural cooperatives as key partners for national 
food security and rural development. It seeks to:
(a) Provide funding and resources to boost the productivity and sustainability of 
agricultural cooperatives;
(b) Encourage clustering and consolidation to achieve economies of scale, and 
improve competitiveness of agricultural cooperatives;
(c) Promote modern, climate-resilient farming practices and technologies;
(d) Enhance access to credit, knowledge, and collective marketing through 
cooperative networks; and
(e) Build the capacity of smallholder farmers through improved extension services 
and training.
It is respectfully acknowledged that a similar measure has been filed by Senator 
Risa Hontiveros. This bill draws on and complements said measure, sharing the 
common objective of advancing the development, promotion, and protection of 
agricultural cooperatives through the creation of a dedicated bureau.
Empowering these cooperatives can create a more resilient agricultural sector, 
reduce poverty, and ensure food self-sufficiency for millions of Filipinos. The 
immediate passage of this bill is therefore earnestly sought.
FRANCIS N. PANGILINAN
Senator\


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S3>ei' :
■ j.?' 
oi' Hu’ ■
25 AUG 13 P6 :40
SENATE
S. No. 1183
RLCEIvEH GV
Introduced by Senator FRANCIS N. PANGILINAN
AN ACT
ENSURING THE DEVELOPMENT, PROMOTION, AND PROTECTION OF 
AGRICULTURAL COOPERATIVES, PROVIDING FOR THE CREATION OF THE 
BUREAU OF AGRICULTURAL COOPERATIVES, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
CHAPTER I
2 
DECLARATION OF POLICY
3
4 
SECTION 1. Short Title. - This Act shall be known as the "Agricultural Cooperatives
5 
Act of 2025."
6 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State, in line
7 
with the Constitution, that expanding productivity is the key to raising the quality of
8 
life for all especially the underprivileged, together with a sustained increase in the
9 
amount of goods and services produced by the nation for the benefit of the people.
10 
In line with this, the State recognizes the need to hasten the growth, integration,
11 
and modernization of the agricultural sector in order to meet the rising dilemma of
12 
food insecurity, which disproportionately affects the marginalized sectors of society.
13 
The State further recognizes the indispensable need to encourage the
14 
participation of women and youth as a primary force In the government's drive to
15 
empower the agricultural sector. Therefore, the State shall focus on establishing a
16 
structure and network that institutionalizes support, capacity-building, and industry
17 
growth for agricultural cooperatives.


1 
Similarly, it is the declared policy of the State to foster the creation and growth of
2 
cooperatives as a practical vehicle for promoting self-reliance and harnessing people
3 
power towards the attainment of economic development and social justice.
4 
Towards this end, the Government and all of its branches, subdivisions,
5 
instrumentalities, and agencies shall ensure the provision of technical guidance,
6 
financial assistance, and other relevant services to enable farmers, fisherfolk, and
7 
other agricultural workers to organize themselves into self-sustaining cooperatives
8 
that work together to strengthen the Philippine agricultural industry.
9 
CHAPTER II
10 
GENERAL PROVISIONS
11 
Sec. 3. Definition of Terms. - In so far as they are used in this Act, the following
12 
terms shall mean:
13 
a. Agribusiness - refers to a range of activities that occur in the agricultural value
14 
chain utilized in modem food production, including but not limited to farming,
15 
forestry, fishing operations, as well as seed supply, agrichemicals, related
16 
machineries, processing, storage, marketing, distribution, and sales, whether
17 
wholesale or retail;
18 
b. Agricultural Cooperative - refers to a type of cooperative comprising farmers,
19 
fisherfolk, agrarian reform beneficiaries, dairy farmers, community forestry
20 
farmers, aquaculture farmers, and other individuals engaged in agricultural
21 
activities. These individuals voluntarily organized themselves into an agricultural-
22 
based economic enterprise, including subsidiary agricultural cooperatives formed
23 
by existing multi-purpose cooperatives and multi-purpose cooperatives whose
24 
primary business activity is at least fifty percent (50%) relatal to agricultural
25 
production, agro-industry, agri-business, or services related to agricultural
26 
production. Agricultural activities encompassed by the cooperative include the
27 
production, processing, agrologists, and distribution of agricultural, fishery, and
28 
forestry inputs and products, whether primary, derived, or processed. The
29 
cooperative also provides a range of services aimed at improving the livelihood,
30 
income, and overall welfare of its members. These services include savings and
31 
credit, marketing, agricultural extension, farm education, agri-tourism, digital
32 
agriculture, and other allied services related to climate resiliency and safety nets;


1 
c. Asset Development - refers to the growth and improvement, according to
2 
targeted goals and objectives, of key instruments and resources for agricultural
3 
operations, such as, but not limited to, land, buildings, which may Include
4 
residences, warehouses, or barns, irrigation systems, fences, and trees;
5 
d. Build Scale - refers to the growth or expansion of agribusiness in a proportional
6 
and profitable manner;
7 
e. Cooperative - refers to an autonomous and duly registered association of
8 
persons, with a common bond of interest, who have voluntarily joined together
9 
to achieve their social, economic, and cultural needs and aspirations by making
10 
equitable contributions to the capital required, patronizing their products and
11 
services, and accepting a fair share of the risks and benefits of the undertaking
12 
in accordance with universally accepted cooperative principles;
13 
f. Clustering - refers to the process by which multiple agribusinesses, each involved
14 
In different stages of the agricultural value chain, combine their operations into
15 
a single hub. This collaboration aims to enhance operational efficiency,
16 
streamline processes, and maximize profits through integrated efforts;
17 
g. Consolidation - refers to a process by which fragmented and scattered
18 
landholdings are reorganized or restructured into larger, more contiguous plot
19 
or plots. This can be done through voluntary reallocation, sales, land exchanges
20 
or swaps, lease, and other means.
21 
h. Criteria for Assessment and Ratings - refers to a set of standards in determining
22 
that the performance of an agricultural cooperative, which includes, among
23 
others, enterprise management, adherence to cooperative principles, and
24 
product or service quality;
25 
i. Family Farming - refers to an agribusiness operation that is managed and
26 
operated by a family unit, related by consanguinity or affinity, whether nuclear
27 
or extended, and which predominantly relies on the labor of the members of
28 
such family for its operations. The family and the farm, therefore, are inextricably
29 
linked, and co-evolve with each other;
30 
j. Local Development Hub (LDH) - refers to a farming zone or transport
31 
infrastructure, which is generally far from formal markets. An LDH serves around
32 
five hundred (500) to one thousand (1,000) farmers, and links them to buyers.


1 
which may be, among others, traders, processors, and export companies, among
2 
others.
3 
k. National Federation of Agricultural Cooperatives (NFAC) - refers to a federation
4 
of agricultural cooperatives that are engaged in agribusiness and financial
5 
business for the benefit of the members through its subsidiaries.
6 
I. Wholesale Market - refers to a market, owned by the government and managed
7 
by the National Federation of Agricultural Cooperatives (NFAC) through its
8 
subsidiary/ies, where a trader buys farm produce from the farmers, through the
9 
agricultural cooperatives, in bulk and re-sells the goods to business houses or
10 
retailers to further sell the goods to end consumers.
11 
m. Cooperative Climate Resilience Fund - refers to a grant-making mechanism that
12 
aims to ensure that agricultural cooperatives and their farmer-members are
13 
protected from and resilient to the impact of climate change.
14 
Sec. 4. Registration and Supervision. - Agricultural Cooperatives shall be governed
15 
by the general law on cooperatives, except as otherwise provided herein. In
16 
connection with this, agricultural cooperatives must be registered with the
17 
Cooperatives Development Authority (CDA) in order to be entitled to the privileges
18 
and exemptions extended to cooperatives under Republic Act (RA) No. 9520,
19 
otherwise known as the Philippine Cooperative Code of 2008.
20 
An agricultural cooperative shall file its application for registration with the CDA
21 
regional office that has jurisdiction over its area of operation. No fees shall be assessed
22 
or charged to any agricultural cooperative by any government entity, national or local,
23 
at any stage of its organization and registration process.
24 
This notwithstanding, as the agency with the mandate to promote agricultural
25 
development by providing policy framework, public investments, and support services,
26 
the Department of Agriculture (DA) shall be the regulatory agency exercising primary
27 
supervision over the National Federation of Agricultural Cooperatives (NFAC). The
28 
Federation shall exercise supervision and control over its member-primary agricultural
29 
cooperatives.
30 
Sec. 5. Capital Requirements of Agricultural Cooperatives. - The authorized share
31 
capital of an agricultural cooperative shall be stated in its Articles of Cooperation. Prior
32 
to its registration, at least twenty-five percent (25%) of the authorized share capital


1 
shall be subscribed to by the members, and at least twenty five percent (25%) of the
2 
subscribed share capital shall be paid-up: Provided, That the paid-up capitalization
3 
requirement for primary cooperatives shall not be less than Fifteen Thousand Pesos
4 
(P15,000.00).
5 
Sec. 6. Cooperative Business Activities and Allied Services. - A duly registered
6 
agricultural cooperative may engage in all or any of the following activities:
7 
a. Raising and/or culture of plants, high-value crops, animals, fish, poultry,
8 
livestock, other agri-products as source of food, feed, and fiber, and other agri-
9 
fishery or non-food commodities;
10 
b. Production of salt;
11 
c. Community and social forestry;
12 
d. Provision of savings and credit facilities for marginal farmers and fishermen;
13 
e. Facilitating the procurement and distribution of farm inputs/implements for its
14 
members;
15 
f. Processing, marketing, and sale of members agri-products or produce;
16 
g. Installation, maintenance and management of irrigation systems, water
17 
impounding, and other agricultural facilities; and
18 
h. Other allied services such as, but not limited to, warehousing, cold storage and
19 
other post-harvest services, hauling, transport of members' products or produce,
20 
and such other similar business services and activities that will reduce cost or add
21 
value.
22 
Sec. 7. Bond of Membership. - The bond of membership of agricultural
23 
cooperatives shall be any of the following:
24 
a. Residential - members are farmers, farm workers, or fisherfolk who are actually
25 
and physically residing within the area of operation;
26 
b. Occupational - members are those who are engaged in raising or culture of
27 
plants or animals, or are part of the technical and scientific communities of the
28 
agriculture sector;
29 
c. Associational - members are from registered associations, groups, clubs, cultural
30 
and other similar aggrupation of farmers, farm workers, and fisherfolk; and
31 
d. Institutional - members are employees, workers, or officers of a particular
32 
Institution who are undertaking or will undertake agricultural projects. Provided, that


1 
at least fifty-one per centum (51%) of its members are duly registered with the
2 
Registry System for Basic Sectors in Agriculture (RSBSA).
3 
CHAPTER III
4 
BENEFITS OF AGRICULTURAL COOPERATIVES
5 
Sec. 8. Tax Treatment of Agricultural Cooperatives that Transact with Non-
6 
members. - Notwithstanding any law or regulation to the contrary, duly registered
7 
agricultural cooperatives that transact with both members and nonmembers, and with
8 
reserve funds of One Hundred Million Pesos (P100,000,000.00) or below shall be
9 
exempt from all national Internal revenue taxes, fees, and charges of whatever name
10 
and nature.
11 
On the other hand, if such agricultural cooperatives have reserve funds of greater
12 
than One Hundred Million Pesos (P100,000,000.00), it shall pay the following taxes on
13 
their transactions with non-members:
14 
a. Income Tax on Income derived from transactions with non-members: Provided,
15 
That the same tax is not consequently imposed on interest individually received
16 
by members. The tax base for all cooperatives liable to pay income tax shall be
17 
the income directly related from the business transactions with non-members
18 
after deducting the amounts for the statutory funds;
19 
b. Value-Added Tax (VAT) on transactions with non-members: Provided, however,
20 
that duly registered agricultural cooperatives shall be exempt from the
21 
imposition of VAT, on the following:
22 
1. Sales by agricultural cooperatives duly registered with the DA to their
23 
members as well as sale of their produce, whether in its original state or
24 
processed form, to non-members; their importation of direct farm inputs,
25 
machineries and equipment, including spare parts thereof, to be used
26 
directly and exclusively in the production and/or processing of their produce,
27 
and their resale to other agricultural cooperatives;
28 
2. Gross receipts from lending activities towards its members or other
29 
agricultural cooperatives;
30
31 
Provided, That the exempt transactions in the foregoing shall include sales
32 
made by agricultural cooperatives duly registered with the DA organized and


1 
operated by their members to undertake the production and processing of
2 
raw materials or of goods produced by their members into finished or process
3 
products for sale by the cooperatives to their members and non-members:
4 
Provided, however, that any processed product or its derivative arising from
5 
the raw materials produced by their members, sold in the name and for the
6 
account of the cooperative shall be deemed a product of the cooperative and
7 
Its members: Provided, further. That at least twenty five per centum (25%)
8 
of the net income of the cooperatives is returned to the members in the form
9 
of interest and/or patronage refunds.
10 
c. All sales of goods and/or services rendered for non-members shall be subject
11 
to the applicable percentage taxes; and
12 
d. All other taxes unless otherwise provided herein.
13 
Donations to duly accredited charitable, research and educational institutions and
14 
reinvestment to socio-economic projects within the area of operation of the
15 
cooperative may be tax deductible.
16 
Sec. 9. Tax Treatment of Agricultural Cooperatives that Transact with Members
17 
Only. - Duly registered agricultural cooperatives under this Act which do not transact
18 
any business with non-members or the general public shall not be subject to any
19 
taxes, fees, and charges Imposed under the internal revenue laws and other tax laws.
20 
Sec. 10. Other Benefits and Privileges of Agricultural Cooperatives. - An
21 
agricultural cooperative shall enjoy the following benefits and privileges:
22 
a. Taxes, Duties, and Liens:
23 
1. All benefits, privileges, and tax treatments of cooperatives as defined and
24 
enumerated under RA 9520 and other relevant laws shall apply to agricultural
25 
cooperatives;
26 
2. Agricultural cooperatives shall be exempt from customs duties, advance sales
27 
or compensating taxes on their Importation and local purchase of
28 
machineries, equipment, accessories, batteries, and spare parts used by
29 
them: Provided, That all tax- and duty-free imports and local purchases shall
30 
not be sold nor the beneficial ownership thereof be transferred to any person
31 
until after five (5) years, otherwise, the cooperative and the transferee or


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assignee shall 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 No. 12009, its implementing rules and regulations, and 
applicable guidelines issued by the Government Procurement Policy Board; 
Provided that 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.


1 
f. strengthening Program for Agricultural Cooperatives - the government
2 
through the DA and CDA shall introduce a program aimed at strengthening
3 
agricultural cooperatives through mergers and consolidations. This initiative,
4 
part of the government's broader effort to enhance the stability and
5 
resilience of the agriculture sector, offers income support incentives to
6 
encourage smaller agricultural cooperatives and farmers associations to
7 
consolidate that can lead to improved operational efficiencies, reducing costs
8 
and improving service delivery for agricultural cooperatives. These may
9 
include grants or subsidies that help build business scale and improve capital
10 
base, operational synergies, broader service offerings, and risk mitigation.
11 
Sec. 11. Organization as a Multi-Purpose Cooperative - Notwithstanding any law
12 
to the contrary, an agricultural cooperative may be organized as a multi-purpose
13 
cooperative from its registration with the CDA: Provided, that it has complied with the
14 
minimum requirements for an agricultural cooperative as prescribed by the CDA Rules
15 
and Regulations.
16 
Sec. 12. Pre-Cooperative Agricultural Organization. - Prior to registration with the
17 
CDA, a group of natural persons intending to form an agriculture cooperative may
18 
voluntarily form a Pre-Cooperative Agricultural Organization (PCAO) that shall have its
19 
own juridical personality to undertake activities that shall determine the viability of the
20 
creation of an agricultural cooperative. The PCAO must be registered as such with the
21 
Cooperative Development Offices (CDOs) of the appropriate LGU where the PCAO
22 
intends to operate. The Bureau may assist and endorse PCAOs to CDA for registration.
23 
The DA and CDA, in coordination with the CDOs, shall assist PCAOs so that they
24 
can formally organize as agricultural cooperatives; Provided, that should the PCAO
25 
decide to formally organize into a cooperative, it must comply with the requirements
26 
under the law. Any contract executed by the PCAO prior to its registration as an
27 
agricultural cooperative shall remain valid and binding between the parties insofar as
28 
it redounds to the benefit of the cooperative.
29 
The DA and CDA shall jointly issue guidelines on the mechanisms for PCAOs.
30 
CHAPTER IV
31 
NATIONAL FEDERATION OF AGRICULTURAL COOPERATIVES


1 
Sec. 13. Organization of the National Federation of Agricultural Cooperatives
2 
(NFAC). - There is hereby organized the National Federation of Agricultural
3 
Cooperatives (NFAC), (hereinafter, the "Federation"), which shall be the single
4 
federation of agricultural cooperatives.
5 
Sec. 14. Consolidation/Merger of Existing Duly-Registered Agricultural
6 
Cooperatives Federation. - Agricultural Cooperative Federations duly-registered with
7 
the CDA prior to the effectivity of-this Act shall merge or consolidate in accordance
8 
with existing applicable laws, rules and regulations. The merged or consolidated
9 
federation shall serve as the single National Federation of Agricultural Cooperatives
10 
(NFAC). The DA and CDA shall issue the guidelines on the merger and/or consolidation
11 
of existing federations of agricultural cooperatives.
12 
Sec. 15. Mandatory Membership of Primary Agricultural Cooperatives to the
13 
Federation. - It Is compulsory for Primary Agricultural Cooperatives to become
14 
members of the National Federation of Agricultural Cooperatives (NFAC).
15 
Sec. 16. Governance of the Federation. — The Chairpersons of the member
16 
primary agriculture cooperatives shall comprise the General Assembly of the
17 
Federation who shall elect and appoint the Officers and Management Staff in
18 
accordance with its duly-approved Articles of Cooperation and By-Laws.
19 
Sec. 17. Primary Business Operations Through Subsidiary/ies. - The Federation
20 
shall be allowed to organize subsidiary cooperatives and/or corporations that will
21 
engage in Agribusiness and Financial Business the surplus and/or income of which
22 
shall be utilized to fund, wholly or in part, the needed services of the member-primary
23 
agricultural cooperatives. Such subsidiary/ies shall be registered with the necessary
24 
regulatory authorities including, but not limiting to, the DA, CDA, SEC and Board of
25 
Investments and shall enjoy the relevant exemptions and privileges under this Act,
26 
the Cooperative Code, and other laws, rules and regulations.
27 
Sec. 18. Channel and/or Partner of Farmer-Related Government and Non-
28 
Government Programs, Projects and Activities. - The Federation shall serve as channel
29 
and/or partner in the implementation of various Programs, Projects and Activities of
30 
National Government Agencies, Local Government Units and Non-Government
31 
Organizations for the benefit of the farmers and their respective families.
10


1 
Sec. 19. Inter-Cooperative Arrangements. - The Federation shall be allowed to
2 
enter into inter-cooperative arrangements with and among other non-agriculture
3 
cooperative federations and other entities to pursue value and supply chain solutions
4 
and other agribusiness development programs, subject to the guidelines to be jointly
5 
promulgated by the DA and CDA.
6 
Sec. 20. Partnership and Joint Venture with Private Entities. - Duly registered
7 
private entitles may enter into a partnership or joint venture with the Federation in
8 
order to provide the latter with investments and technological support, such as, but
9 
not limited to technological, logistics, and facilities support, among others. Such
10 
partnership or joint venture shall be registered with the necessary regulatory
11 
authorities, including the DA and CDA, and shall enjoy the relevant exemptions and
12 
privileges under this Act, the Cooperative Code, and other laws, rules and regulations.
13 
This notwithstanding, the equity or contribution of such private entity shall not exceed
14 
forty percent (40%) of the partnership or joint venture.
15 
Sec. 21. Supervision and Control- The DA shall exercise supervision and control
16 
over the Federation. In like manner, the Federation shall exercise supervision and
17 
control over its member-primary agricultural cooperatives through the conduct of
18 
regular audit/s in accordance with the standards approved by the DA and the CDA.
19 
Sanctions imposed on non-compliant member-primary cooperatives shall be approved
20 
by the DA and CDA. The DA and CDA shall, in consultation with the Federation, issue
21 
guidelines on the supervision and control of agricultural cooperatives.
22 
CHAPTER V
23 
WHOLESALE MARKET
24 
Sec. 22. Establishment of Wholesale Markets. - There is hereby established at
25 
least one Wholesale Market in every province owned by the respective Local
26 
Government Units (LGUs) and operated by the National Federation of Agricultural
27 
Cooperatives (NFAC) or its appropriate subsidiary/ies. The DA, DILG and the CDA
28 
shall, in close coordination with the Federation, issue the rules and regulations on
29 
Wholesale Market establishment and operation.
30 
CHAPTER VI
31 
COOPERATIVE CLIMATE RESILIENCE FUND
11


1 
Sec. 23. Creation of the Cooperative Climate Resiiience Fund. - There is hereby
2 
established a Cooperative Climate Resilience Fund managed by the National
3 
Federation of Agricultural Cooperatives (NFAC) to be pooled from government,
4 
agricultural cooperatives and other private entities, the utilization of which shall be
5 
subject to the guidelines promulgated by the Agricultural Cooperatives Council. At
6 
least fifty per centum (50%) of the Cooperative Climate Resilience Fund shall come
7 
from the government.
8 
CHAPTER VII
9 
BUREAU OF AGRICULTURAL COOPERATIVES
10 
Sec. 24. Creation of the Bureau of Agricuiturai Cooperatives. - The DA shall
11 
establish a Bureau of Agricultural Cooperatives (hereafter, the "Bureau"), which shall
12 
be the primary coordinating, implementing, and administrative body responsible for
13 
matters relating to agricultural cooperatives, including, but not limited to, monitoring
14 
their performance and implementing plans and programs for their growth and
15 
development. The Bureau shall be headed by a qualified Director, and its
16 
organizational and staffing pattern shall be determined by the DA, in accordance with
17 
the rules set forth by the Department of Budget and Management (DBM).
18 
Sec. 25. Powers and Functions of the Bureau of Agricultural Cooperatives. - The
19 
Bureau of Agricultural Cooperatives shall exercise the following powers and functions:
20 
a. Collaborate and coordinate with various government agencies, institutions, and
21 
units for the development and implementation of projects and plans for
22 
agricultural cooperatives;
23 
b. Promote the use of digital platforms and innovative technologies for the
24 
growth and development of agricultural cooperatives, in coordination with the
25 
relevant agencies;
26 
c. Consolidate and study all relevant information regarding agricultural
27 
cooperatives that shall be used in the formulation of policies and programs for
28 
the sector;
29 
d. Develop advocacy programs for capacity-building and further education of
30 
members of agricultural cooperatives, with a particular focus on women and
31 
youth;
32 
e. Provide technical assistance to agricultural cooperatives;
12


1 
f. In partnership with the NFAC, establish Local Development Hubs (LDHs) In
2 
order to foster cooperation, collaboration, and mutual support among
3 
agricultural cooperatives, in coordination with the CDA and LGUS;
4 
g. Promote agricultural cooperative dusters and assist in the creation thereof, as
5 
a means to forge strategic partnerships among cooperatives; and
6 
h. Monitor and evaluate the performance of agricultural cooperatives according
7 
to an established assessment and ratings system.
8 
Sec. 26. Sustainability Mapping. - Within one (1) year from the effectivity of this
9 
Act, the Bureau shall undertake a comprehensive nationwide survey in order to assess
10 
the agricultural sustainability status of each region and LGU. The findings of such
11 
nationwide survey shall serve as the foundation for the formulation of a ten (10)- year
12 
Food Security Master Plan. The Master Plan shall identify priority sectors and projects
13 
aimed at promoting agricultural development and sustainability throughout the
14 
country. The plan shall be designed to enhance food security, improve agricultural
15 
productivity, and ensure long-term sustainability of the agricultural sector.
16 
Sec. 27. Clustering and Consolidation. - In order to pool their resources for
17 
increased viability and market competitiveness, the DA, Department of Agrarian
18 
Reform (DAR), Department of Trade and Industry (DTI), CDA and NFAC shall jointly
19 
establish a program that will promote, encourage agricultural cooperatives and
20 
facilitate their cooperation into clusters that will encompass the whole agricultural
21 
value chain, including but not limited to land consolidation, postharvest processing,
22 
distribution, logistics, marketing, and promotions.
23 
Within sixty (60) days from the effectivity of this Act, the DA, DAR, DTI and CDA,
24 
in consultation with the NFAC, shall jointly issue the guidelines for the implementation
25 
of the foregoing program, and shall provide the necessary assistance at every step of
26 
the clustering and consolidation process, including the formulation of cluster
27 
development plans.
28 
Notwithstanding any law to the contrary, the clustering or merger and
29 
consolidation of agricultural cooperatives shall be in accordance with the
30 
Implementing Rules and Regulations of this Act.
31 
Sec. 28. Local Development Hubs. - The DA and CDA shall jointly establish Local
32 
Development Hubs (LDHs) in order to strengthen the market linkages between
13


1 
farmers and buyers, fostering agricultural development and economic growth at the
2 
local level. Further, they shall jointly issue the guidelines for the operations and
3 
maintenance thereof.
4 
Sec. 29. Collaboration with the NFAC, Cooperative Development Councils and
5 
National Government Agencies. - The Bureau shall, in collaboration with the National
6 
Federation of Agricultural Cooperatives (NFAC), LGUs through the Regional, Provincial,
7 
City, and Municipal Cooperative Development Councils and the CDOs, facilitate and
8 
promote programs and policies that enables the growth and development of
9 
agricultural cooperatives. The DA, CDA, and the relevant LGU or agency in consultation
10 
with NFAC shall issue a Joint Memorandum Circular for the implementation of this
11 
provision. Agricultural cooperatives shall be entitled to financing support from the
12 
relevant government agencies that shall allocate funds for the establishment of
13 
projects and programs for the development and promotion of agricultural
14 
cooperatives.
15 
Sec. 30. Sustainability and Innovation. - The Bureau shall allocate funding and
16 
support for the development and implementation of innovative and sustainable
17 
agricultural practices.
18 
Sec. 31. Mentorship and Training. - The Bureau shall implement programs that
19 
will focus on the capacity-and capability-building of members of agricultural
20 
cooperatives, especially the empowerment of women and young farmers.
21 
Among others, these programs may include:
22 
a. Internship and apprenticeship programs with duly accredited agricultural
23 
cooperatives. In partnership with the Committee on Higher Education (CHED);
24 
b. Certification programs for management and operation of agricultural
25 
cooperatives, as well as related technical skills, in partnership with the
26 
Technical Education and Skills Development Authority (TESDA);
27 
c. Scholarships or student loan forgiveness, as may be necessary; and
28 
d. Incentives for the discovery or development of innovative and sustainable
29 
agricultural practices and techniques.
30 
Sec. 32. Assessment and Ratings. - Upon the effectivity of this Act, the Bureau
31 
shall establish an assessment and ratings system for agricultural cooperatives, which
32 
shall measure the performance, including the social and community impact, of the
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1 
latter using both qualitative and quantitative metrics, and which shall be used to
2 
classify and determine the best-performing agricultural cooperatives among various
3 
categories. Thereafter, the Bureau and the CDA, In close coordination with NFAC shall
4 
review the performance of registered agricultural cooperatives every three (3) years
5 
and update their ratings accordingly.
6 
The DA and CDA, in consultation with NFAC shall use the foregoing in the
7 
provision of incentives and benefits to agricultural cooperatives under the law.
8 
Sec. 33. Annual Trade Fair and Awards. - The Bureau, in coordination with the
9 
CDA and the National Federation of Agricultural Cooperatives (NFAC), shall establish
10 
the Annual Agricultural Cooperatives Trade Fair and Awards to showcase exemplary
11 
business achievement, latest innovations, and other emerging trends in the sector.
12 
The Bureau shall ensure that agricultural cooperatives are able to participate and
13 
exhibit their products during said Fair and shall encourage the latter's participation in
14 
other trade fairs and expos.
15 
CHAPTER VIII
16 
AGRICULTURAL COOPERATIVES COUNCIL
17 
Sec. 34. Creation of the Agricultural Cooperatives Council - There is hereby
18 
created the Agricultural Cooperatives Council (hereafter, the "Council"), which shall
19 
be the primary policy and planning body for the promotion, development, and
20 
modernization of agricultural cooperatives and organizations.
21 
Sec. 35. Composition of the Council - The Council shall be composed of the
22 
following members, or their duly authorized representatives:
23 
a. Secretary of Agriculture, as Chairperson;
24 
b. Chairperson of the CDA, Vice-Chairperson;
25 
c. Undersecretary of the Department of Trade and Industry;
26 
d. Undersecretary of the Department of Agrarian Reform;
27 
e. Undersecretary of the Department of Environment and Natural Resources;
28 
f. Undersecretary of the Department of Education;
29 
g. Undersecretary of the Department of Science and Technology;
30 
h. Undersecretary of Department of Economy, Planning and Development;
31 
i. Director-General of the Technical Education and Skills Development Authority;
32 
j. Executive Director of the National Disaster Risk Reduction and Management
15


1 
Council;
2 
k. Commissioner of the Commission on Higher Education;
3 
I. Representative from the Philippine Statistics Authority;
4 
m. One (1) Representative each from Cooperative Climate Resiliency Fund private
5 
donor entities;
6 
n. Representative from the National Federation of Agricultural Cooperatives
7 
(NFAC)and
8 
0. Two (2) representatives each, from the primary agricultural cooperatives sector
9 
who are members of the National Federation of Agricultural Cooperatives
10 
(NFAC), for Luzon, Visayas, and Mindanao
11 
Sec. 36. Powers and Functions of the Council. - The Council shall exercise the
12 
following powers and functions:
13 
a. Formulate and issue policies for the growth and development of the agricultural
14 
cooperative sector, which shall encompass adoption of innovative and
15 
ecological agricultural practices, access to resources and benefits, market
16 
opportunities, and capacity-building, among others;
17 
b. Formulate the Food Security Master Plan, in coordination with the Bureau;
18 
c. Provide an integrated framework in order to optimize all government resources
19 
for the modernization and empowerment it of the sector;
20 
d. Issue guidelines, rules, and regulations for the development of the tangible
21 
assets, such as machineries, granaries, equipment, and lands, among others,
22 
of agricultural cooperatives;
23 
e. Issue guidelines, rules, and regulations, in coordination with the appropriate
24 
agencies, to ensure the rights and welfare of agricultural cooperatives and
25 
their members, especially women, youth, and family farmers, as well as their
26 
preferential treatment in government procurement as enshrined under the
27 
law;
28 
f. Formulate policies for the development of sustainable financial reform in the
29 
agricultural cooperative sector, including the creation of a government
30 
financial institution that will specifically cater to the sector, in coordination
31 
with the relevant departments and agencies;
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3
4
5
6
7
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9
10
11
12
13
14
15
16
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19
20 
21 
22
23
24
25
26
27
28
29
30
31
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
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. Roie 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;
17


1 
d. Facilitate the establishment and develop the management and operations of
2 
agricultural cooperatives within their jurisdictions;
3 
e. Expedite the issuance of necessary permits for the implementation of projects
4 
and programs of the DA, CDA, and other government agencies and
5 
instrumentalities for the benefit of agricultural cooperatives;
6 
f. Upon written request of the CDA, assist in the resolution of inter-cooperative
7 
disputes among agricultural cooperatives operating within their localities;
8 
g. Facilitate and conduct seminars, trainings, and conferences necessary for the
9 
organization, registration, management, and operations of agricultural
10 
cooperatives, in coordination with cooperative federations and unions; and
11 
h. Provide technical assistance and skills training for farmers, farm workers, and
12 
fisherfolk to engage in income-generating activities.
13 
CHAPTER IX
14 
OTHER PROVISIONS
15 
Sec. 41. Appropriation — The amount necessary for the initial implementation of
16 
this Act shall be taken from the current fiscal year's appropriation of the DA and DTI.
17 
Thereafter, the amount necessary to carry out the provisions of this Act shall be
18 
appropriated in the General Appropriations Act of the year following its enactment into
19 
law.
20 
Sec. 42. Impiementing Rules and Regulations. - Within ninety (90) days from the
21 
effectivity of this Act, the DA, in coordination with the relevant departments and
22 
agencies, and in consultation with agricultural cooperatives, shall issue the necessary
23 
rules and regulations to implement this Act.
24 
Sec. 43. Joint Congressional Oversight Committee on Agricultural Cooperatives. -
25 
There is hereby created a Joint Oversight Committee to oversee, monitor, and
26 
evaluate the implementation of this Act.
27 
The Oversight Committee shall be composed of five (5) members each from the
28 
Senate and House of Representatives, including Chairpersons of the Committee on
29 
Agriculture and Cooperatives of both Houses.
30 
The membership of the Committee of very House shall have at least two (2)
31 
members from the minority.
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1 
Sec. 44, Annual Reports. - The Council shall submit an annual report to the
2 
Congress of the Philippines on the progress of its projects and plans and offer
3 
recommendations for possible legislation.
4 
Sec. 45. Sunset Review. - Within five (5) years after the effectivity of this Act, or
5 
as the need arises, the Joint Congressional Committee on Agricultural Cooperatives
6 
shall conduct a sunset review.
7 
For purposes of this Act, the term "sunset review" shall mean a systematic
8 
evaluation of the accomplishments and impact of this Act, as well as the performance
9 
and organizational structure of its implementing entities, for purposes of determining
10 
remedial legislation.
11 
Sec. 46. Repealing Clause. - All laws, decrees, executive orders, administrative
12 
orders, rules and regulations or parts thereof inconsistent with the provisions of this
13 
Act are hereby repealed or modified accordingly.
14 
Sec. 47. Separability Clause. - In case any provisions of this Act or any portion
15 
thereof is declared unenforceable, illegal, or unconstitutional by a competent court,
16 
other provisions shall not be affected thereby.
17 
Sec. 48. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
18 
publication in the Official Gazette or in two (2) newspapers of general circulation.
Approved,
19