QuestionsQuestions (Republic Act No. 8435)
RA 8435 is titled the “Agriculture and Fisheries Modernization Act of 1997.” It is designed to prescribe urgent measures to modernize the agriculture and fisheries sectors to enhance profitability and prepare them for globalization through adequate, focused, and rational delivery of support services, including the appropriation of funds.
Section 2 declares policies including: Poverty Alleviation and Social Equity; Food Security; Rational Use of Resources; Global Competitiveness; Sustainable Development; People Empowerment; and Protection from Unfair Competition (especially protecting small farmers and fisherfolk from monopolistic/oligopolistic practices).
The objectives include: modernizing agriculture/fisheries (resource-based to technology-based); enhancing incomes/profits (especially small farmers and fisherfolk); ensuring stable food supply; encouraging integration and organization (cooperatives, associations, corporations, nucleus estates, consolidated farms); promoting people empowerment; adopting a market-driven approach; moving up the value-added ladder (processing); encouraging rural industrialization through incentives for investors with backward linkages; providing adjustment measures while protecting environment and equity; and improving quality of life.
An SAFDZ is the area within the NPAAAD identified for production, agro-processing, and marketing activities to develop and modernize agriculture and fisheries with government support in an environmentally and socio-culturally sound manner. The NPAAAD serves as the “network of protected areas” from which SAFDZ areas are identified and delineated.
SAFDZ identification is based on: (a) agro-climatic and environmental conditions for competitive crops/animals/aquatic products; (b) strategic location for agriculture/fisheries infrastructure, industrial complexes, production and processing zones; (c) strategic location for market development and networking locally and internationally; and (d) dominant presence of agrarian reform communities (ARCs), small owner-cultivators/beneficiaries, and small farmers and fisherfolk.
Model farms are areas (within ARCs and other suitable areas in SAFDZ) designated by the Department in coordination with LGUs. Farmer-landowners may enter into management agreements with corporate entities to achieve high-end production and productivity through up-to-date technology and resources (skilled manpower, capital/credit, and market access), consistent with existing laws.
Section 8 requires the Department (through BSWM) with NAMRIA and HLURB to map the network of areas for agricultural and agro-industrial development for all municipalities/cities at an appropriate scale. Section 9 requires the Department, in consultation with multiple agencies and stakeholders, to establish and delineate SAFDZ within one (1) year from the effectivity of the Act, based on sound resource accounting.
Yes. Section 9 states that all irrigated lands, irrigable lands already covered by irrigation projects with firm funding commitments, and certain lands for high-value crops included in SAFDZ shall not be converted for five (5) years from effectivity. Up to five percent (5%) of such lands may be converted upon compliance with applicable land conversion laws/rules. After that period, conversion may be allowed case-to-case, and in case of conversion the landowner must pay an amount equivalent to the government’s investment cost including inflation.
Agricultural inactivity: Any person/entity knowingly causing irrigated agricultural lands of seven (7) hectares or larger within protected areas to lie idle/unproductive for more than one year (unless force majeure) is subject to an idle land tax of PHP 3,000 per hectare per year; if inactivity exceeds two years, the land is subject to escheat proceedings. Premature/illegal conversion: Imprisonment of 2 to 6 years and/or a fine equivalent to 100% of government investment cost, and accessory penalty of forfeiture of land and improvements. DAR may also cancel conversion authorization and blacklist/deny conversion applications.
AFMP is the medium- and long-term comprehensive plan to be formulated and implemented by the Department in consultation with farmers/fisherfolk, private sector, NGOs, and relevant agencies. It focuses on five major concerns: poverty alleviation/social equity; income enhancement/profitability; global competitiveness; and sustainability. Sections 14–15 further specify goals and indicators, including food availability at affordable prices, poverty reduction, malnutrition reduction, reduced post-harvest losses, higher processed product output, and reduced harmful agro-chemical use.
Section 18 requires the Department to develop capability to monitor AFMP through PBMES and to provide periodic reports to the Congressional Oversight Committee on Agriculture and Fisheries Modernization. It may also hire independent consultants/external evaluators to assess overall impact.
Section 20 declares the policy to alleviate poverty and promote countryside growth through access to credit, emphasizing small farmers/fisherfolk (particularly women in production/processing/trading) and SMEs/industries engaged in agriculture and fisheries. Interest rates should be determined by market forces (without affecting existing credit arrangements with agrarian reform beneficiaries). Section 22 defines coverage beneficiaries broadly, and Section 23 enumerates the scope of the Agro-Industry Modernization Credit and Financing Program (AMCFP).
Section 21 directs the Department to implement existing DCPs but, within four (4) years from effectivity, to phase out all DCPs and deposit the Department’s loanable funds (including CALF funds and new funds for AMCFP) for management/administration by cooperative banks, rural banks, government financial institutions, and viable NGOs for the AMCFP. Interest earnings revert to the AMCFP.
Section 25 requires rationalization and consolidation of existing credit guarantee schemes/funds into one Agriculture and Fisheries Credit Guarantee Fund (covering Quedancor, GSFME, and the Comprehensive Agricultural Loan Fund). It will be managed and implemented by Quedancor, with board representation granted to cooperatives, LGUs, and rural financial institutions. Guarantees are for small-scale agriculture/fisheries activities and countryside micro-, small, and medium enterprises; it may also cover guarantees for purchase orders and sales contracts. The fund must be funded by at least 10% of AMCFP allocation.
Section 26 sets policy on rational and equitable use of natural resources: prevent watershed destruction, rehabilitate irrigation systems, and develop effective/affordable/appropriate/efficient irrigation. Section 27 requires irrigation R&D. Section 28 sets location-specific criteria for selection of irrigation schemes (technical feasibility, cost-effectiveness, affordability, sustainability, O&M cost recovery, water-use efficiency, gestation period, and productivity potential), including social cost-benefit analysis. Section 29 provides simplified public bidding per COA rules; government-borrower farmers/private entities are exempt. Section 30 maintains NIA’s role for NISs and mandates gradual turn-over of O&M of secondary canals and on-farm facilities to Irrigators’ Associations. Section 31 provides devolution of CIS planning/design/management to LGUs within five years, with NIA providing technical assistance.
Section 37 exempts the repair, maintenance, and rehabilitation of irrigation facilities, as well as BOT irrigation projects, from the scope of the election ban on public works.
The NIN is an information network from the Department level down to regional/provincial/municipal offices, created within one year, linked with research institutions, and enabling consolidation/continuous updating of relevant data. Under Section 42, it provides information and marketing services such as demand data, price/price trends, product standards, directory of cooperatives/traders/key market centers/processors, research/technology information, market forecasts, and resource accounting data.
BAFPS is to be established within six months and sets/implements standards for fresh, primary- and secondary-processed agricultural and fishery products. It formulates and enforces standards for quality in processing/preservation/packaging/labeling/import/export/distribution/advertising; conducts research to align local and international standards; and conducts regular inspections of processing plants, storage facilities, abattoirs, and public/private markets to ensure freshness, safety, and quality.