Question & AnswerQ&A (DENR ADMINISTRATIVE ORDER NO. 33)
The government's production share shall be equivalent to thirty percent (30%) of the gross sales computed at farm gate price.
The products include timber sold as poles, sawlogs, veneer logs or pulpwood logs, and rattan, bamboo and all other non-wood products if they cover fifty percent (50%) or more of the total FLMA area.
Yes, the government's production share shall not exceed the real value of the initial investment in plantation development.
The FLM is not required to pay production share for products derived from thinning, pruning, rouging and related silvicultural treatments; tops and branches as by-products; harvests from non-wood species planted as intercrops, windbreaks or greenbreaks; and harvest from species planted, maintained, and protected by the FLM at their own expense.
It is an interest-bearing account opened by the FLM in a bank, which cannot be withdrawn from without DENR's authorization, to manage funds related to the FLMA.
The FLM must deposit not less than forty percent (40%) of the gross income derived from the sale into the Fund.
Not less than sixty (60) days after the conclusion of each harvest and sale, and with DENR's written concurrence, the FLM can withdraw an amount equivalent to thirty percent (30%) of the gross income to remit as production share.
Payment of the production share may be deferred with approval from the Community Environment and Natural Resources Office, but deferment should not exceed five (5) years.
Payment continues for the duration of the FLMA for final crop species planted with government funds that are harvested during the period, and also for renewed FLMA periods for slow-growing species not matured in the first period, until payments equal the real value of the initial government investment.
The FLM may reforest additional areas adjacent to the FLMA area and has the first option to apply for another FLMA over the new reforested site.