Law Summary
Declaration of Policy
- Goals: equitable distribution of income and wealth, increased goods and services, expanded productivity.
- Promotion of industrialization and employment via sound agriculture and agrarian reform.
- Encouragement for private enterprises to broaden ownership.
- Enable agriculture and fisheries sectors to share development fruits efficiently and sustainably.
- Priority on food security, particularly rice and white corn sufficiency.
- Adoption of a market approach balancing food security, environmental protection, balanced urban-rural development, and consumer welfare.
- Empower sectors in accordance with principles: poverty alleviation, food security, efficient resource use, global competitiveness, sustainable development, people empowerment, protection from unfair competition.
Statement of Objectives
- Modernize agriculture and fisheries from resource-based to technology-based.
- Enhance incomes especially small farmers and fisherfolk through equitable access and by promoting higher-value crops and agribusiness.
- Ensure stable food supply.
- Encourage integration and consolidation of production and services for economies of scale.
- Strengthen people’s organizations and participation in government decision-making.
- Pursue market-driven comparative advantage.
- Promote value-added processing to move beyond raw products.
- Support rural industrialization and investor incentives.
- Provide social and economic adjustments for productivity and equity.
- Improve quality of life for all sectors.
Definition of Terms
- Extensive definitions provided including Agrarian Reform Community, Agricultural Lands, Agricultural Sector, Agricultural Mechanization, Cooperatives, Farmers’ and Fisherfolk’s Organizations, Fisheries, Food Security, Global Competitiveness, Irrigation Systems, Small Farmers and Fisherfolk, Strategic Agriculture and Fisheries Development Zones (SAFDZ), among others.
Strategic Agricultural and Fisheries Development Zones (SAFDZ)
- The State ensures optimized development of all economic sectors and regions through rational resource use.
- Department tasked to identify SAFDZ within protected agricultural areas based on agro-climatic, strategic location, market potential, and agrarian community presence.
- SAFDZ have integrated development plans (production, processing, marketing, environment).
- Model farms may be established with partnerships between farmer-owners and competent corporate entities.
- Mapping and delineation of SAFDZ done with consultation of LGUs, government, and stakeholders.
- Conversion of irrigated and irrigable land within SAFDZ restricted for five years with limited exceptions and penalty provisions.
- Local governments must prepare land use and zoning ordinances incorporating SAFDZ.
- Penalties for agricultural inactivity (idle land tax and possible escheat) and premature conversion (imprisonment, fines, land forfeiture, administrative sanctions).
- Preservation of watersheds crucial to irrigation maintained at all times.
Agriculture and Fisheries Modernization Plan (AFMP)
- Department formulates medium- and long-term modernization plans focused on poverty alleviation, income enhancement, global competitiveness, and sustainability.
- Emphasis on ensuring availability of food staples at affordable prices, reducing poverty, improving land tenure, increasing export potential, reducing post-harvest losses, and sustainable practices.
- Consideration of global climate change impacts for forecasting and planning.
- Inclusive plans to address WTO-related challenges, agrarian reform, infrastructure, credit, research, environment, rural employment, gender, youth, and indigenous peoples.
- Monitoring through Program Benefit Monitoring and Evaluation System (PBMES) and periodic reports to Congressional Oversight Committee.
- Coordination with multiple government agencies to ensure integrated implementation.
Credit
- State policy to alleviate rural poverty and promote growth via improved credit access for small farmers, fisherfolk, and SMEs.
- Phase-out of Directed Credit Programs over four years, replacement by Agro-Industry Modernization Credit and Financing Program (AMCFP) managed by cooperatives, rural banks, and NGOs.
- Coverage includes production, processing, farm inputs, equipment, storage, working capital, irrigation, agribusiness activities, and uncollateralized loan guarantees.
- Independent review of financial institutions involved in agriculture credit with recommendations for policy improvements.
- Consolidation of credit guarantee schemes into Agriculture and Fisheries Credit Guarantee Fund managed by Quedancor.
Irrigation
- State policy for rational, equitable use of natural resources with focus on effective, affordable, and sustainable irrigation development.
- Prioritization of research and development for appropriate irrigation technology and watershed rehabilitation.
- Selection criteria for irrigation projects include feasibility, cost-effectiveness, sustainability, efficiency, and social cost-benefit analysis.
- Simplified public bidding for irrigation projects except for farmer-led projects financed partly by government loans.
- National Irrigation Administration (NIA) manages National Irrigation Systems and transfers maintenance to Irrigators Associations.
- Communal Irrigation Systems devolved to Local Government Units (LGUs) within five years with technical assistance from NIA.
- Promotion of minor irrigation schemes and private sector participation encouraged.
- BOT (Build-Operate-Transfer) project guarantees provided by the national government.
- Irrigation service fees reviewed and adjusted.
- Regular monitoring, evaluation, and review of irrigation systems.
- Repair and rehabilitation exempted from election ban on public works.
Information and Marketing Support Services
- Policy to empower farmers and fisherfolk via timely, accurate business and market information and trading support.
- Market information system covers farmers, cooperatives, traders, processors, LGUs, and Department.
- Establishment of National Marketing Assistance Program and National Information Network (NIN) linking various government levels and research institutions.
- NIN provides comprehensive data including demand, pricing trends, product standards, directories, research outputs, and market forecasts.
- Technical assistance for NIN setup at local levels utilizing cooperatives and LGUs.
- Roles assigned to Bureau of Agricultural Statistics, Department of Transportation and Communications, LGUs, and Cooperatives Development Authority for support and training.
- Private sector allowed access to NIN under formulated guidelines and fees.
Other Agriculture and Fisheries Infrastructure
- Coordination among DPWH, DOTC, DTI, LGUs and Department to address infrastructure needs.
- Prioritization criteria include agro-industrial potential, socio-economic contributions, previous public investments, and presence of small farmers and fisherfolk.
- Preference for cost-effective public infrastructure benefiting largest number of producers and processors.
- Facilitation for private infrastructure investments with minimized bureaucratic hurdles.
- Coordination for fishports, seaports, airports, farm-to-market roads, rural energy, communications, water supply systems, research infrastructure, post-harvest facilities, and market facilities.
- Emphasis on sanitary and efficient market standards and support for market vendors’ cooperatives.
- Priority on development and promotion of appropriate agricultural machinery.
Product Standardization and Consumer Safety
- State policy mandates adherence to product standards to ensure consumer safety and product competitiveness.
- Establishment of the Bureau of Agriculture and Fisheries Product Standards (BAFPS) within six months of the Act.
- BAFPS covers fresh, primary, and secondary processed products.
- Powers include standard formulation, enforcement, research on alignment with international standards, and inspection of facilities and markets.
- BAFPS may consult experts and government agencies like DTI, BFAD, and Food and Nutrition Research Institute.
Human Resource Development
- Emphasis on science and technology education and training to accelerate development and industrialization in agriculture and fisheries.
- Establishment of National Agriculture and Fisheries Education System (NAFES) by CHED for integrated, relevant, quality education from elementary to tertiary levels.
- Elementary and secondary agriculture and fisheries education programs focusing on core values, entrepreneurship, and science appreciation.
- Post-secondary education coordinated by TESDA including curriculum development, dual training system, and certification.
- Network of National Centers of Excellence for Agriculture and Fisheries Education with accreditation by CHED based on defined criteria.
- Rationalization plans for institutions not designated as centers of excellence.
- LGU financial counterpart support for provincial institutes.
- Integrated human resource development planning and output-oriented performance standards with periodic evaluations.
- Creation of Agriculture and Fisheries Board within the Professional Regulation Commission to oversee professional regulation and eligibility exemptions.
- Continuing education programs for teachers and scholarship programs for academic staff pursuing advanced degrees.
- Merit system for academic promotion and budgetary allocations aligned with institutional standards.
Research, Development, and Extension Services
- Prioritization of science and technology, indigenous capabilities, research, development, and education.
- Enhancement and consolidation of National Research and Development Systems.
- Multidisciplinary research involving farmers, fisherfolk, private and public sectors with academic freedom.
- Funding guidelines with at least 1% of Gross Value Added to research and development by 2001, with multi-year funding