Title
Direct cash aid to small rice farmers
Law
Republic Act No. 11598
Decision Date
Dec 10, 2021
The Cash Assistance for Filipino Farmers Act provides direct cash assistance to small farmers in the Philippines, utilizing excess annual tariff revenues to address the challenges faced by farmers affected by declining palay prices and the COVID-19 pandemic.
A

Questions (Republic Act No. 11598)

Republic Act No. 11598 is titled “An Act Authorizing the Department of Agriculture to Provide for Direct Cash Assistance to Farmers Who Are Tilling Two (2) Hectares and Below of Rice Land Until 2024, and Use for the Purpose the Annual Tariff Revenues in Excess of Ten Billion Pesos (P10B) of the Rice Competitiveness Enhancement Fund Created Under Republic Act No. 11203, Entitled… and for Other Purposes.” It was approved on December 10, 2021.

The State policy is to address the plight of small farmers by providing monetary assistance to the hardest hit segments of the country in response to declining palay prices and the crippling effects of the COVID-19 pandemic.

The Department of Agriculture (DA) is authorized to use the specified RCEF excess tariff revenues to directly provide cash assistance to eligible small rice farmers.

The BOC is maintained to directly remit to the DA the annual tariff revenues in excess of P10B (from rice importation) that will be used for the cash assistance program.

Farmers who are tilling two (2) hectares and below of rice land are eligible for the cash assistance.

The direct cash assistance is authorized until 2024.

The annual tariff revenues in excess of Ten Billion Pesos (P10B) of the Rice Competitiveness Enhancement Fund (RCEF) created under Republic Act No. 11203.

Section 13 of Republic Act No. 11203 is referenced as the basis for the annual tariff revenues in excess of P10B of the RCEF.

At the end of each year, both the DA and the BOC must submit separate reports to Congress, through the relevant Senate and House Agriculture committees, on (1) remittance of funds and (2) actual fund disbursement for the year.

It states that the source of funds for the annual direct cash assistance is the excess Ten Billion Pesos (P10B) of annual tariff revenues from rice importation pursuant to R.A. No. 11203.

If any provision (or part) of the Act is declared unconstitutional, the remaining provisions not affected remain in force.

It repeals or modifies any law, presidential decree or issuance, executive order, letter of instruction, rule, or regulation that is inconsistent or contrary to RA 11598.

It takes effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.

Potential issues include whether the statutory use of tariff revenues is consistent with the enabling law (R.A. No. 11203), whether the appropriation/source-of-funds mechanism complies with constitutional fiscal requirements, and whether the program’s classification of beneficiaries (based on land area) is reasonable and non-discriminatory.

It underscores accountability and transparency mechanisms, and it helps ensure legislative oversight over the remittance and disbursement of public funds.

Rice tariff revenues in excess of P10B from the RCEF are remitted by the BOC to the DA, and the DA then disburses the cash assistance to eligible farmers; both agencies then report annually to Congress on remittance and disbursement.

It provides context for the legislative intent and purpose—targeted monetary relief—supporting a purposive interpretation aimed at addressing hardship in the rice farming sector.


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