Free Irrigation Service Act

The State policy is to promote comprehensive rural development, food self-sufficiency, equitable access to opportunities, and sustained productivity as strategies to raise the quality of life in rural areas and attain overall national development (Section 2).
The State must ensure that vital support services are available, particularly irrigation service, through continued construction, repair, and maintenance of necessary irrigation facilities to increase production of agricultural crops, encourage productivity, and increase farmers’ incomes (Section 2).
The State commits to lowering the cost of production by providing free irrigation service and to relieving farmers and irrigators associations from the burden and consequences of unpaid irrigation service fees (Section 2).

After the Act’s effectivity, all farmers with landholdings of eight (8) hectares and below are exempt from paying irrigation service fees (ISF) for water derived from national irrigation systems (NIS) and communal irrigation systems (CIS) (Section 3).
The ISF exemption covers NIS and CIS that were or are funded, constructed, maintained, and administered by the National Irrigation Administration (NIA) and other government agencies, including systems that have been turned over to irrigators associations (IAs) (Section 3).
Farmers with more than eight (8) hectares, corporate farms and plantations drawing water for agricultural crop production, and fishponds and other persons (natural or juridical) drawing water for nonagricultural purposes from NIS and CIS, or using the irrigation systems as drainage facilities, remain subject to paying ISF (Section 3).

The Act condones and writes off from the books of the NIA all unpaid ISF and the corresponding penalties of farmers with eight (8) hectares and below to NIA (Section 4).
The Act condones and writes off from the books of the NIA all loans, past due accounts, and the corresponding interests and penalties of IAs to NIA (Section 4).

The NIA must continue to develop, operate, and maintain national irrigation systems (NIS) (Section 5).
The NIA may delegate the operation and maintenance (O and M) of secondary and tertiary canals and farm ditches to capable IAs (Section 5).
The NIA must provide the equivalent funds for the O and M of facilities delegated to capable IAs (Section 5).
The NIA must issue the necessary policies, qualification requirements, and selection process to determine the capability and capacity of IAs to operate and maintain the delegated portions of NIS (Section 5).

Communal irrigation systems (CIS) must continue to be operated and maintained by IAs (Section 6).
In lieu of ISF that are no longer billed from exempt farmers, the national government must provide the equivalent funds for the O and M of CIS (Section 6).

In addition to national government funds provided for the O and M of NIS and CIS, the NIA must issue guidelines on the collection and use of ISF, including unpaid ISF, of persons not exempted under the Act (Section 7).

The NIA and other government agencies must provide technical assistance to IAs on the O and M of national and communal irrigation systems and on farm enterprises management (Section 8).

The amounts necessary for implementation of the Act must be included in the annual General Appropriations Act (Section 9).
Within three (3) months from the start of the Act’s effectivity, the NIA must promulgate implementing rules and regulations, in consultation with concerned government agencies, farmers, IAs, farmer cooperatives, and other stakeholders (Section 10).

If any provision of the Act is declared invalid or unconstitutional, the remaining provisions remain in full force and effect (Section 11).
Republic Act No. 3601, as amended by Presidential Decree Nos. 552 and 1702, is amended insofar as it is inconsistent with the Act (Section 12).
All other laws, presidential decrees, issuances, executive orders, letter of instructions, administrative orders, rules, or regulations contrary to or inconsistent with the Act are repealed, modified, or amended accordingly (Section 12).