Objectives
- Increase supply of timber, forest products, and food.
- Accelerate reforestation and rehabilitation of open and denuded forest lands.
- Protect existing natural forests.
- Conserve soil, water, biodiversity, and improve environmental conditions.
- Generate additional income and livelihood sources.
- Provide equitable access to forest lands and resources.
Definitions
- SIFMA: Agreement granting rights to develop and manage small forest tracts sustainably.
- SIFMA Holder: Qualified individual or entity holding SIFMA.
- SIFP: Land planted mainly to trees/products supporting manufacturing or supplying wood, food, biomass.
- Brushland: Land covered with shrubs or stunted trees.
- Open and Denuded Land: Formerly forested land now grass/bare soil.
- DENR: Department of Environment and Natural Resources and its specific offices defined.
- LGU: Local Government Unit.
- NGO: Non-Governmental Organization.
Areas Available for SIFMA
- Grasslands, brushlands, open and denuded forest lands suitable for production forestry under DENR.
- Areas not part of NIPAS or covered by ancestral domain claims, prior rights, or existing agreements unless expressly agreed.
- Areas with pending claims are excluded until denied by NCIP.
- Current occupants with legal claims require agreement or claim resolution before SIFMA application.
Size of the Area
- Individuals/single family: 1 to 20 hectares.
- Associations, partnerships, cooperatives: Over 20 to 500 hectares.
Selection and Publication of SIFMA Sites
- CENRO identifies suitable sites using maps, land use plans, and verifies eligibility.
- Composite teams validate biophysical, socio-economic factors and consult adjoining communities.
- Final site determination includes technical description, mapping, and LGU endorsement.
- LGU endorsements depend on area coverage (barangay, municipality/city, province).
- Finalized areas recorded in SIFMA Registry and shared with DENR offices and LGUs.
Qualified Applicants
- Filipino individuals/legal age, preferably local residents; priority to actual occupants.
- Cooperatives, associations, partnerships with Filipino members, registered with appropriate agencies.
Disqualified Applicants
- Those with prior cancelled forestry agreements due to non-compliance.
- Those with officers having derogatory records like illegal logging or tax evasion.
- Holders of existing forestry permits or licenses.
Assignment of Management Responsibility
- DENR issues SIFMA for 25 years renewable for 25 more.
- Awarded on first-come, first-served basis.
- Issued in applicant’s name; married couples jointly.
- Transfer allowed to qualified parties within area limits.
- Transfers require approval and documentation with DENR and LGUs.
- Cancellation orders also circulated.
Application Requirements
- Filed with CENRO using prescribed format.
- Non-refundable fee of P1.00 per hectare, minimum P250.00.
- Location and sketch maps.
- For individuals: Community Tax Certificate, birth certificate.
- For organizations: Registration certificates, member lists, resolution of intent.
- Indicative Development Plan jointly prepared covering financing and environmental aspects.
Processing of Applications
- CENRO evaluates completeness, stamps, records, or returns deficient applications.
- Field verification by composite team within five working days.
- En Banc Evaluation group meets bi-monthly to assess applications on reforestation feasibility and financing.
- Winning applications are endorsed to RED.
- Non-winning applicants are informed.
- NCIP certification/FPIC secured before award.
- RED approves and awards SIFMA; copies circulated to relevant offices.
Minimum Terms and Conditions
- Provision of management, technology, and financial services by holder.
- Mechanisms for consultation and arbitration.
- Prohibition on unauthorized land use conversion.
- Pollution prevention and environmental protections.
- Rehabilitation and protection of forests.
- Monitoring schemes, with full planting within three years.
- Gender equity and workers’ rights protection.
- Community development commitments.
- Planting requirements: at least 60% forest trees, 30% fruit trees, rest for agriculture.
- Permanent tree cover on steep slopes and riverbanks.
- Restrictions on untested exotic species without DENR clearance.
Incentives to SIFMA Holders
- Ownership and use rights of all planted trees and crops.
- Export allowed per government rules.
- Exemption from forest charges on plantation products.
- Compensation if SIFMA cancelled without cause.
- Priority in future tenurial arrangements.
- Allowed use as loan collateral with approval.
- Technical assistance for forming larger organizations.
Government Share
- Environmental enhancement and conservation benefits maintained by holders.
- Trees for protection retained as government share.
- Employment generation.
- Infrastructure development.
- Increased production of fuelwood, food, non-wood products.
- Stable supply of raw materials for industries.
- Protection of soil, water and biodiversity.
- Income tax payments.
- Land rentals with graduated fees starting from sixth year.
Integration into Larger Organizations
- Encouragement of SIFMA holders to form cooperatives or federations.
- DENR and partners provide technical assistance, skills training, organizational management.
- Explore incentives to transfer management control to employees and local occupants.
Grounds for Cancellation
- Failure to develop within three years.
- Dummy holder or unauthorized transfer.
- Conversion to unauthorized land use.
- Allowing residential building constructions.
- Cutting natural trees unlawfully.
- Denial of access to authorized officials.
- Fraud or misrepresentation in application.
- Labor law violations.
- Violation of SIFMA terms or forestry laws.
- Abandonment.
- Non-payment of fees.
- Voluntary surrender.
- Public interest.
Monitoring, Evaluation and Reporting
- Registration of all SIFMAs within 15 days of issuance.
- FMB develops monitoring and reporting system; CENRO collects data and PENRO consolidates and reviews.
- Reports submitted to the Secretary via FMB.
- Monitoring teams include LGU, NGO, and DENR representatives.
- Progress indicators: seedling production, area planted, environmental measures, progress maps, photos, and issue reports.
Program Management
- FMB as national coordinating office: policy formulation, coordination, evaluation, institutional linkages, and data keeping.
- RED with RTD Forestry implement and oversee programs regionally, approve applications, cancellations, transfers.
- PENRO manages implementation provincially, evaluates CENRO reports, and maintains data.
- CENRO directly implements program locally, identifies sites, processes applications, and monitors progress.
Repealing Clause
- Repeals DENR Administrative Order No. 24, series of 1996 and other inconsistent orders or provisions.
Effectivity
- Effective 15 days after publication in a newspaper of general circulation.