Question & AnswerQ&A (Republic Act No. 7900)
The title of Republic Act No. 7900 is the "High-Value Crops Development Act of 1995."
The main policy objective is to accelerate the growth and development of agriculture, enhance productivity and incomes of farmers and rural population, improve investment climate and efficiency of agribusiness, and develop high-value crops as export crops to augment foreign exchange earnings through promotion of production, processing, marketing, and distribution of high-value crops.
The Act covers upland dwellers, lowland tenants, indigenous and cultural communities, Comprehensive Agrarian Reform Program (CARP) beneficiaries, upland farm owners, farmers, farmers' organizations/associations/cooperatives, community associations and farmworkers, and relevant government agencies in key commercial crop production areas.
High-value crops include crops other than traditional ones like rice, corn, coconut, and sugar, such as coffee, cacao, various fruit crops (like citrus, mango, pineapple), root crops (potato, ubi), vegetables (asparagus, broccoli, tomato), legumes, spices and condiments (garlic, black pepper), and cutflower and ornamental foliage plants.
Idle and abandoned land refers to any agricultural land not cultivated, titled, or developed to produce any crop or devoted to any economic purpose continuously for three years immediately prior to government notice of acquisition under CARP.
Farmer cooperatives may lease land for twenty-five years, renewable for another twenty-five years, with a maximum area of one thousand hectares (1,000 ha).
The High-Value Crops Development Fund (HVCDF) is created with an initial amount of One billion pesos (P1,000,000,000) sourced from the Comprehensive Agricultural Loan Fund (CALF).
Sixty percent (60%) of the HVCDF is for direct lending to high-value crop producers, and forty percent (40%) is allocated for loans guaranteed through private financial institutions.
They are exempted from taxes and duties under the Cooperative Code, value-added tax under the National Internal Revenue Code, and from local taxes and fees under the Local Government Code related provisions.
The Department of Agriculture is primarily responsible for managing the HVCDF and coordinating the High-Value Crops Development Program.
The Inter-agency Committee, composed of various government agencies and representatives from the farming sector, is tasked to formulate and prescribe implementing rules and regulations for the Act after public hearing and publication.
Project proponents shall effect payment on leases not earlier than two years after the lease agreement is signed, with the grace period determined by the gestation periods of the crops.
The Agribusiness Development Group implements, coordinates, and monitors the program; assists in policy formulation; extends marketing assistance; encourages infrastructure development; establishes research links; conducts training; and manages market information and facilities related to high-value crops.
Yes, project proponents may import high quality seeds or planting materials free of duties subject to quarantine laws and requirements under Republic Act No. 7083.
No, this Act explicitly states that it shall not be construed or applied as amending the CARL or other agrarian reform laws.