Question & AnswerQ&A (Republic Act No. 7607)
Republic Act No. 7607 is known as the "Magna Carta of Small Farmers."
The State gives the highest priority to the development of agriculture to achieve equitable distribution of benefits and opportunities through the empowerment of small farmers, recognizing their responsibility and providing necessary support mechanisms.
All small farmers and, to the extent provided, the departments, offices, agencies, subdivisions, or instrumentalities of the National Government are covered under this Act.
A small farmer refers to natural persons dependent on small-scale subsistence farming as their primary source of income whose sale, barter, or exchange of agricultural products do not exceed a gross value of One hundred eighty thousand pesos (P180,000) per annum based on 1992 constant prices, subject to periodic adjustment by an inter-agency committee.
Officials or employees who allow or connive with traders in the purchase of agricultural produce subject to government price support intended for small farmers shall be penalized with a fine of not less than Ten thousand pesos (P10,000) or imprisonment of two to four years, or both, with perpetual disqualification to hold public office.
Small farmers have rights to operate in a market free from monopolies, avail of social security, obtain credit with minimal requirements, participate in government agricultural programs, earn from natural resources under existing laws, and access technical assistance and vital agricultural information, among others.
They must utilize their organizations for production and marketing, aim for increased productivity, comply with government assistance terms, participate in public service delivery, contribute to conservation, pay applicable fees and taxes, and engage in community development projects.
The government shall provide infrastructure support such as farm-to-market roads, irrigation, postharvest facilities, and market infrastructure, with participation from farmers’ organizations using locally available manpower and materials.
Farmers’ organizations, preferably cooperatives, are recognized for promoting the welfare of small farmers, encouraging marketing cooperatives, representing farmers in government agencies, facilitating credit access, and participating in agricultural program planning and implementation.
An efficient rural credit delivery system is established, providing credit at interest rates not exceeding 75% of commercial rates, minimizing collateral requirements, and expanding services to cover production inputs as well as education and health needs, with subsidies and loan guarantee coverage administered through the Agricultural Credit Policy Council and Land Bank of the Philippines.