Law Summary
Scope of Application
- Coverage includes all small farmers.
- Applies to departments, offices, agencies, subdivisions, or government instrumentalities involved.
Definitions of Key Terms
- Small farmer: Natural persons depending on small-scale farming with an income limit of P180,000 per annum (1992 value).
- Farmers' organization: Cooperatives or associations primarily composed of small agricultural producers.
- Small agricultural producer: Self-employed individuals providing primary labor to their enterprise.
- Production infrastructure: Includes roads, irrigation, electrification, warehouses, and training/research facilities.
- Pre-harvest and postharvest activities: Detailed in specific farming operations ranging from planting to processing.
- Extension services: Technology transfer and training by government/non-government.
- Transportation and market infrastructure: Roads, ports, market buildings, storage for agricultural produce.
- Subsidies: Input subsidy, agrarian reform credit, and price subsidy explained.
- Farmworker: Persons employed in agricultural enterprises regardless of wage basis.
- Upland and irrigated farming, banks classifications, seeds definitions, cooperative, Integrated Pest Management, and locally available materials are defined for operational clarity.
Farmers' Right to Organize
- Recognizes farmers' right to organize for welfare and interest promotion.
- Government assistance in establishing cooperatives and marketing cooperatives is mandated.
Farmers' Representation in Government
- Elected farmer representatives at various levels shall represent interests in relevant government agency boards.
- Representation ensures coordination and official communication between farmers and government.
Empowerment of Small Farmers
- Farmers empowered by access to ownership and management of production resources.
- Rights include fair market participation, social security coverage, credit access, farm inputs, government representation, education, and technical assistance.
- Obligations include utilizing cooperative structures, increasing productivity, compliance with assistance terms, proper production and marketing strategies, community contributions, conservation efforts, and tax compliance.
Infrastructure and Farm Inputs
- Government support for infrastructure projects with farmer involvement using local materials and labor.
- Facilities and services necessary for preharvest and postharvest activities shall be accessible through farmers' organizations.
- Municipalities shall establish linkages to ensure assistance availability.
Transportation and Communication Infrastructure
- Priority for farm-to-market roads, bridges, and ports in small farmer-populated areas.
- Farmers encouraged to eventually control transport equipment.
- Communication facilities provided in municipalities for access to essential information.
Postharvest and Market Facilities
- Barangays entitled to storage and multipurpose facilities maintained with farmers' labor.
- Facilities leased or sold to farmers' organizations by government agencies like NFA.
- Assistance for establishing market infrastructure to guarantee market access.
Seeds, Fertilizers and Pesticides
- Government ensures availability and promotion of certified and good seeds for increased productivity.
- Encourages safe use of fertilizers and pesticides, organic alternatives, and Integrated Pest Management.
- Monitoring, regulation, and information campaigns oversee pesticide use.
- Distribution facilitated through farmers' organizations.
Farm Machinery and Equipment
- Availability ensured through support from Department of Agriculture and farmers' organizations.
- Registration of all farm machinery with municipal governments.
- Promotion of draft animals and equipment sharing schemes.
- Government funds grants-in-aid to increase farm equipment inventory.
Water Management and Irrigation
- Government provides support for development, management, and conservation of water resources.
- Implementation of small water impounding projects with farmers' participation.
- Promotion of small, efficient, and sustainable irrigation systems.
- Rehabilitation of underutilized irrigation, environmental protection, and watershed management emphasized.
- Farmer-beneficiaries organized into irrigators’ associations responsible for maintenance and fee collection.
- Promotion of irrigation pump programs and electric or diesel-powered systems.
Agricultural Credit
- Establishment of a sound credit delivery system with maximum interest rates at 75% of commercial rate.
- Focus on accessibility, minimal collateral, reasonable repayment, and loan documentation.
- Subsidies for education on credit and loan processing.
- Promotion of strong farmers' organizations to facilitate credit access.
- Expansion of loan guarantee coverage and crop insurance programs.
- Land Bank of the Philippines consolidates government agricultural lending programs.
- Encouragement of cooperative banks development.
Wages, Incentives, and Price Support
- Small farmers and farmworkers entitled to financial and technical livelihood assistance.
- Government encourages agro-based projects with market support.
- Preferential tariff for farm inputs and equipment used by farmers' organizations.
- Crop insurance programs expanded.
- Skill certification systems and farmers' insurance coverage promoted.
- Importation restricted for locally produced agricultural products.
- Small farmers encouraged to undertake income-generating activities with government support.
- Government establishes price support systems balancing farmer income and consumer affordability.
- Minimum wage guaranteed as per regional boards for farmworkers.
- Government procurement policies mandate direct purchase from small farmers or their organizations.
- Penalties imposed on officials violating procurement and price support rules include fines, imprisonment, and disqualification.
Research, Development, and Extension Services
- Research and development focused on mission-oriented projects addressing local farmer needs.
- Demonstration farms to verify adaptable technologies.
- Training and technology transfer emphasize production, postharvest, marketing, entrepreneurship, and institutional development.
- Soil and climatic studies to optimize land use and crop production.
- Extension workers act as linkage between government and farmers’ organizations.
- Collaborative programs to link agriculture to industry for rural development.
Implementation and Mechanisms
- Appropriations authorized in the General Appropriations Act and other funding sources.
- Department of Agriculture tasked to issue rules and regulations within 60 days of effectivity.
- Repealing clause cancels inconsistent laws except for the Local Government Code.
- Separability clause maintains valid provisions if parts are declared unconstitutional.
- Effectivity clause mandates the law’s enforcement 15 days after publication.
This comprehensive breakdown covers all key provisions, definitions, rights and duties of small farmers, government assistance programs, credit and marketing support, infrastructure provisions, research directives, and penalties under the act.