Question & AnswerQ&A (DA JOINT ADMINISTRATIVE ORDER NO. 1, S. 1996)
The main objective is to insure the proper, effective and efficient implementation and enforcement of the Act to enhance the development of high-value crops in the Philippines, thereby accelerating agricultural growth, increasing productivity and incomes of farmers, improving investment climate, and augmenting foreign exchange earnings through promotion of production, processing, marketing, and distribution of high-value crops.
The rules cover upland dwellers, lowland tenants, indigenous and cultural communities, CARP beneficiaries, upland farm owners, farmers, farmers' organizations/associations/cooperatives, community associations, farmworkers, agro-processors, input suppliers, corporations related to agriculture, NGOs, and relevant government departments and agencies in designated key commercial crop production areas.
High-Value Crops are those optimally and sustainably produced in an area generating revenues higher than traditional crops; examples include coffee, cacao, various fruit crops, root crops like potato and ubi, vegetable crops, legumes, spices and condiments, as well as cutflowers and ornamental plants.
Farmer-cooperatives or associations cultivating the land are given priority to tenurial arrangements. Subject to agency conditions, cooperatives may lease lands for 25 years, renewable for another 25 years, with a maximum area of 1,000 hectares.
The HVCDF has an initial capitalization of P1 billion sourced from the CALF, donations/grants, and borrowings. Sixty percent is allocated for direct lending to farmers/cooperatives, while 40% is reserved for guarantee operations to enhance credit access.
Participating farmer-cooperatives are exempt from taxes and duties per Article 62 of RA 6938 (Cooperative Code), from Value-Added Tax under Section 103 of the National Internal Revenue Code, and from taxes, fees, and charges under Title One, Book Two of the Local Government Code of 1991 as provided by Section 133(n) of the Code.
The Department of Agriculture (DA) and the Department of Agrarian Reform (DAR), in coordination with the Department of Environment and Natural Resources (DENR), Department of Interior and Local Government (DILG) and local government units, together with the private sector, are responsible for site identification and ensuring areas meet criteria such as agro-climatic suitability, market accessibility, support facilities, and viable farmer groups.
The Agribusiness Group directs and coordinates the High-Value Crops Development Program, manages inter-agency activities, promotes marketing and investments, conducts training, manages technical and infrastructure support, sets up commodity databanks, and monitors program implementation.
Idle and Abandoned Land refers to agricultural land not cultivated or used for any specific economic crop purpose continuously for three years prior to government acquisition notice under CARP, excluding lands turned to non-agricultural purposes or unproductive lands due to force majeure events provided previous agricultural or economic use.
Incentives include crop insurance coverage under the Philippine Crop Insurance Corporation for high-value crops, credit guarantees from QUEDANCOR to improve bankability, marketing assistance through coordination with DTI and private sector, technical support for research and training, infrastructure support like farm-to-market roads and postharvest facilities, and fiscal incentives aligned with the Board of Investments' Investment Priorities Plan.