Question & AnswerQ&A (Republic Act No. 8435)
The short title of Republic Act No. 8435 is the "Agriculture and Fisheries Modernization Act of 1997."
The primary goals are a more equitable distribution of opportunities, income, and wealth; sustained increase in goods and services production; expanding productivity to raise quality of life, especially for the underprivileged; promotion of industrialization and full employment based on sound agricultural development and agrarian reform; and enabling agriculture and fisheries sectors to share equitably in the fruits of development.
Agriculture and Fisheries Modernization is defined as the process of transforming the agriculture and fisheries sectors into one that is dynamic, technologically advanced and competitive yet centered on human development, guided by the sound practices of sustainability and the principles of social justice.
Violators shall be penalized with imprisonment of two (2) to six (6) years, or a fine equivalent to 100% of the government’s investment cost, or both, at the discretion of the court. Additionally, the land and improvements shall be forfeited. The Department of Agrarian Reform (DAR) may also cancel or withdraw land use conversion authorization and blacklist violations.
SAFDZ are areas within the network of protected agricultural and agro-industrial development areas identified based on agro-climatic conditions, strategic location for infrastructure, markets, and presence of agrarian reform communities and small farmers and fisherfolk, intended to catalyze development in agriculture and fisheries sustainably.
The Department of Agriculture, in consultation with the DAR, DTI, DENR, DOST, LGUs, organized farmers and fisherfolk, private sector, and communities, shall delineate SAFDZ within one year from the Act’s effectivity. Lands within SAFDZ shall not be converted for five years except for up to 5% with compliance to laws. Afterward, conversion requires case-by-case approval and payment of government investment cost by the landowner.
The National Marketing Assistance Program aims to create a national marketing umbrella to ensure generation of the highest possible income for farmers and fisherfolk by matching supply and demand in domestic and foreign markets and providing marketing assistance services.
Multiple agencies including the Departments of Agriculture, Public Works and Highways, Interior and Local Government, Trade and Industry, Agrarian Reform, Science and Technology, Environment and Natural Resources, Education, Culture and Sports, Technical Education and Skills Development Authority, Health, Social Services and Development, and the Congressional Committees on Agriculture.
This network, accredited by the CHED, comprises qualified public and private colleges and universities designated as centers of excellence to upgrade and maintain high academic standards in agriculture and fisheries education, contributing to human resource development aligned with sector needs.
The Act mandates the phase-out of Directed Credit Programs and transfer of funds to rural and cooperative banks and NGOs through the Agro-Industry Modernization Credit and Financing Program (AMCFP), with emphasis on proper management, market-determined interest rates, and special provisions for small farmers and fisherfolk including credit guarantees.
The Committee oversees and monitors the implementation of programs related to agricultural modernization, provides legislative support, recommends asset disposal, ensures inclusion in development plans, holds hearings, and generally performs necessary functions to achieve the Act's objectives.
Allocations include 30% for irrigation, 10% for post-harvest facilities, 10% for other infrastructure, 10% for Agro-Industry Modernization Credit Financing Program, 8% for marketing assistance, 10% for research and development, 5% for capability-building, 6% for salary supplement of extension workers, 5% for National Agriculture and Fisheries Education System, 4% for the National Information Network, 1.75% for rural non-farm employment training, and 0.25% for SAFDZ identification.
The penalty is an idle land tax of Three Thousand Pesos (P3,000) per hectare per year. If inactivity continues beyond two years, the land is subject to escheat proceedings, unless due to force majeure.
BAFPS formulates and enforces standards on processing, preservation, packaging, labeling, importation, exportation, and advertising of agricultural and fisheries products; conducts research on standardization; aligns local standards with international standards; and inspects facilities to ensure product freshness, safety, and quality.
Selection shall be location-specific and based on technical feasibility, cost-effectiveness, affordability, sustainability, recovery of operation and maintenance costs, water use efficiency, length of gestation period, and potential for increasing productivity, along with a social cost-benefit analysis.