Title
Free Irrigation Service Act
Law
Republic Act No. 10969
Decision Date
Feb 2, 2018
The Free Irrigation Service Act provides farmers with landholdings of eight hectares and below exemption from irrigation service fees, aims to enhance agricultural productivity, and condones unpaid fees and penalties to support rural development.

Questions (BFAD ADMINISTRATIVE ORDER NO. 29-A)

RA 10969 is the “Free Irrigation Service Act.” It provides for free irrigation service by exempting certain farmers from paying irrigation service fees (ISF), amending RA 3601, appropriating funds, and relieving farmers and irrigators associations from unpaid ISF and related burdens.

The State aims to promote comprehensive rural development and food self-sufficiency, ensure equitable access to opportunities, and sustain productivity. It specifically ensures vital support services like irrigation through construction, repair, and maintenance of irrigation facilities to raise crop production, productivity, and farmers’ incomes, lowering cost of production via free irrigation service and relieving unpaid ISF burdens.

Farmers with landholdings of eight (8) hectares and below are exempted from paying ISF for water derived from national irrigation systems (NIS) and communal irrigation systems (CIS) funded, constructed, maintained, and administered by the NIA and other government agencies, including systems turned over to irrigators associations (IAs).

No. Farmers with more than eight (8) hectares, as well as corporate farms and plantations drawing water for agricultural crop production, fishponds, and other persons drawing water for non-agricultural purposes (or using irrigation systems as drainage) are generally still subject to payment of ISF.

ISF exemptions apply to water derived from national irrigation systems (NIS) and communal irrigation systems (CIS) that are or were funded, constructed, maintained, and administered by the NIA and other government agencies, including those turned over to irrigators associations.

Yes. The law’s scope explicitly includes systems that were, or are to be, turned over to IAs, while maintaining the exemption for qualified farmers (eight hectares and below).

It condones and writes off all unpaid ISF and corresponding penalties of farmers with eight (8) hectares and below to NIA, and all loans, past due accounts, and corresponding interests and penalties of IAs to NIA.

It indicates that the unpaid ISF (and penalties) and the IAs’ loans/arrears (and related interests/penalties) are extinguished as NIA receivables through accounting/record cancellation, consistent with the statutory condonation.

The NIA shall continue to develop, operate, and maintain NIS. However, it may delegate O&M of secondary and tertiary canals and farm ditches to capable IAs, with the NIA providing equivalent funds for the O&M of these facilities.

The NIA must issue necessary policies, qualification requirements, and a selection process to determine the capability and capacity of IAs to operate and maintain those portions of NIS.

CIS shall continue to be operated and maintained by IAs. Since exempt farmers are no longer billed ISF, the national government provides the equivalent funds for O&M of CIS.

In addition to national government funds for O&M of NIS and CIS, the NIA must issue guidelines on the collection and use of ISF, including unpaid ISF, of those not exempt under the Act.

The NIA and other government agencies must provide technical assistance to IAs on the O&M of national and communal irrigation systems and on farm enterprises management.

Within three (3) months from the start of the effectivity of the Act, the NIA (in consultation with concerned government agencies, farmers, IAs, farmer cooperatives, and other stakeholders) must promulgate the IRR.

It takes effect after fifteen (15) days from its publication in the Official Gazette or in two (2) newspapers of general circulation.

If any provision is declared invalid or unconstitutional, the other provisions not affected by that declaration remain in full force and effect.

RA 10969 amends Republic Act No. 3601 (as amended by Presidential Decree Nos. 552 and 1702) insofar as inconsistent with RA 10969. It also repeals, modifies, or amends all other laws, decrees, issuances, orders, and regulations contrary to or inconsistent with RA 10969.

The amounts necessary for implementation shall be included in the annual General Appropriations Act.

Yes. Persons drawing water for non-agricultural purposes from NIS and CIS, or using the irrigation systems as drainage facilities, remain subject to the payment of ISF.


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