QuestionsQuestions (Republic Act No. 11321)
RA 11321 is known as the “Sagip Saka Act.” It institutes the Farmers and Fisherfolk Enterprise Development Program of the Department of Agriculture to support enterprise development, increase farmers’ and fishermen’s incomes, and improve quality of life through a comprehensive, holistic approach.
To achieve sustainable modern agriculture and food security by helping agricultural and fishing communities reach their full potential, increasing incomes, bridging gaps through public-private partnerships, and strengthening farmers’ and fisherfolk enterprise development through better coordination and entrepreneurship building.
It is the comprehensive set of objectives, targets, and holistic approach promoting enterprises involving agricultural and fishery products. It must be integrated and consistent with the Agriculture and Fisheries Modernization Plan and the Micro, Small, and Medium Enterprises Development Plan.
Including: (a) improvement of production and productivity (extension services, skills development, inputs/equipment/infrastructure); (b) improved access to financing (credit grants and crop insurance); (c) access to improved technologies through R&D; and (d) business support and development services, especially market access, marketing, and networking.
Coverage includes: agricultural and fisheries production and processing; acquisition of work animals/equipment/machinery; acquisition of seeds/fertilizer/poultry/livestock/feeds; procurement of products for storage/trading/processing/distribution; construction/acquisition/repair of facilities for production through marketing; working capital for agriculture/fisheries graduates; agribusiness activities supporting soil/water conservation and ecology; working capital for long gestating projects; and credit guarantees on uncollateralized loans.
Existing producer groups in priority commodity value chains; farmers/fisherfolk able to produce marketable surplus and willing to cluster and enter contracts; producer groups/clusters willing to undergo capacity building; and micro/small processors, consolidators, exporters, and other enterprises willing to assist producer groups in vertical clustering or joint business planning.
Farmers and fisherfolk must be members of any organization operating in the priority commodity value chain to be eligible either as members of the proponent group or as suppliers to the enterprise.
The Department of Agriculture (DA) is the implementing agency. It may tap support and expertise from agencies including the Philippine Coconut Authority, National Dairy Authority, Bureau of Soils and Water Management, Philippine Center for Post-Harvest Development and Mechanization, Bureau of Fisheries and Aquatic Resources, Agricultural Training Institute, Agricultural Credit and Policy Council, and Bureau of Agricultural Research—among others.
The Council oversees proper implementation. Members include: the DA Secretary (Chair, at least an Undersecretary); representatives from DTI, DILG, DOF, CDA; national organizations of farmers’ cooperatives/associations and fisherfolk cooperatives/associations; and two representatives from agriculture, food, restaurant, and business sectors.
The Agriculture and Fishery Councils (AFOs) of the Philippine Council for Agriculture and Fisheries (PCAF) provide mechanisms for private sector participation in development processes at those local levels.
Maintained by the DA (through Agribusiness-and Marketing Assistance Service), it helps in formulating enterprise development plans and programs and enables producer groups, private sector, LGUs, and donors to respond to local and world market needs and generate resources. It contains lists/registry of programs/projects, a registry of enterprises, and a roster of private companies, among other identified information.
National and local government agencies shall directly purchase agricultural and fishery products from accredited farmers and fisherfolk cooperatives/enterprises if necessary for their mandates. Such procurement is exempt from the bidding process under relevant procurement laws, but the agencies must undergo a negotiated procurement under applicable Government Procurement Policy Board guidelines.
Gifts and donations of real and personal properties are exempt from donor’s tax; LGUs exempt structures/buildings/warehouses for storage of farm inputs/outputs from real property tax if assessed value does not exceed P3,000,000; Land Bank provides preferential rates/special window to accredited enterprises; income tax exemptions may be provided for income from enterprise operations if the cooperatives/enterprises register as BMBEs under RA 9178.
Within 60 days from effectivity, the DA in consultation with DTI and DOF must formulate the rules and regulations for proper implementation.
Separability: if any provision is declared invalid/unconstitutional, the remaining provisions remain in force. Repealing: laws, executive orders, rules, and regulations inconsistent with RA 11321 are repealed or modified accordingly.
It takes effect 15 days after publication in the Official Gazette or in a newspaper of general circulation.
Because eligibility of farmers/fisherfolk and proponent groups is linked to participation in an organization operating in the priority commodity value chain; it also guides what products are identified and prioritized for coverage under science-based technology identification and prioritization.