Program establishment and framework
- Section 3 creates the Farmers and Fisherfolk Enterprise Development Program (“Program”) as a comprehensive set of objectives, targets, and holistic approach for promoting enterprises involving agricultural and fishery products.
- The Program must be integrated and made consistent with the Agriculture and Fisheries Modernization Plan and the Micro, Small, and Medium Enterprises Development Plan.
- The Program must use science-based technologies to identify and prioritize agricultural and fishery products covered by enterprise development.
- The Program provides the following forms of assistance:
- Improvement of production and productivity, including agricultural extension services, skills development, provision of production inputs, equipment, facilities, and infrastructure for production and post-production activities.
- Improvement of producers’ and enterprises’ access to financing through credit grants and crop insurance.
- Access to improved technologies through research and development.
- Business support and development services, particularly access to markets, marketing, and networking.
Coverage of program activities
- Section 4 provides that the Program covers the following areas:
- Agricultural and fisheries production, including processing of fisheries and agri-based products and farm inputs.
- Acquisition of work animals, farm and fishery equipment and machinery.
- Acquisition of seeds, fertilizer, poultry, livestock, feeds, and other similar items.
- Procurement of agricultural and fisheries products for storage, trading, processing, and distribution.
- Construction, acquisition, and repair of facilities for production, processing, storage, transportation, communication, marketing, and other facilities supporting agriculture and fisheries.
- Working capital for agriculture and fisheries graduates to enable engagement in agriculture and fisheries related economic activities.
- Agribusiness activities supporting soil and water conservation and ecology enhancing activities.
- Working capital for long gestating projects.
- Credit guarantees on uncollateralized loans to farmers and fisherfolk.
Beneficiaries and eligibility
- Section 5 identifies proponent groups or beneficiaries as:
- Existing producer groups whose products are included in the priority commodity value chains and have potential to increase their marketable surplus.
- Farmers and fisherfolk with potential to produce marketable surplus who demonstrate willingness to voluntarily adopt clustering with other groups and forge contracts or formal marketing agreements with buyers or private intermediaries.
- Producer groups or cluster of growers that are either operational and/or show willingness to undergo capacity building on enterprise development and management.
- Micro, small, and medium scale processors, consolidators, exporters, and other enterprises willing to assist producer groups in vertical clustering or joint business planning, and forge contracts or formal marketing agreements with producer groups.
- Joint business planning and investments of producer groups and agro-processors must be supported when it results in increased engagement of producer groups in value-adding activities.
- Farmers and fisherfolk must be members of any organization operating in the priority commodity value chain to be eligible either as a member of the proponent group or as supplier to the enterprise.
Implementing and partner institutions
- Section 6 designates the Department of Agriculture (DA) as the implementing agency of the Program.
- The DA must tap assistance, expertise, and resources of specific agencies, namely: Philippine Coconut Authority (PCA), National Dairy Authority (NDA), Bureau of Soils and Water Management (BSWM), Philippine Center for Post-Harvest Development and Mechanization, Bureau of Fisheries and Aquatic Resources (BFAR), Agricultural Training Institute (ATI), Agricultural Credit and Policy Council (ACPC), and Bureau of Agricultural Research (BAR).
- The DA must collaborate with and secure technical support and assistance from other departments and attached agencies and corporations, including Department of Agrarian Reform (DAR), Department of Environment and Natural Resources (DENR), Department of Science and Technology (DOST), Department of Trade and Industry (DTI), and Department of the Interior and Local Government (DILG).
- Section 7 allows partnerships or alliances between farmers and fisherfolk and the private sector to improve market access of producer groups.
Private sector partnership rules; councils; information system
- Section 7 requires the DA to consider the following criteria in selecting private sector partners:
- Commitment to enter into marketing contracts or buy-back agreements with producers’ groups.
- Willingness to undertake technology transfer on the provided goods and/or services.
- Financial and organizational capability to undertake the proposed enterprise.
- Established and actual experience in undertaking or implementing the proposed enterprise.
- Section 7 allows private sector partners to provide or donate equipment, machineries, and other forms of assistance to farmers and fisherfolk engaging in enterprise development.
- Section 7 requires the DA to issue guidelines and qualification requirements for recognizing private sector partners.
- Section 8 creates the Farmers and Fisherfolk Enterprise Development Council to oversee proper Program implementation.
- The Council is composed of: the Secretary of the DA (or duly authorized representative at least an Undersecretary) as Chair; a DTI Undersecretary representative; a DILG representative; a DOF representative; a Cooperative Development Authority (CDA) representative; a representative of a national organization of farmers cooperatives or associations; a representative of a national organization of fisherfolk cooperatives or associations; and two (2) representatives from the agriculture, food, restaurant and business sectors.
- Section 8 requires the DA to tap attached-agency resources and commodity development programs and require counterpart funding from partner and LGUs and farmers and fisherfolk organizations and enterprises in the form of cash, land, building, labor, or machineries and equipment.
- Section 9 provides that the Agriculture and Fishery Councils (AFOs) of the Philippine Council for Agriculture and Fisheries (PCAF) provide mechanisms for private sector participation at the regional, provincial, city/municipal levels.
- Section 10 requires the DA, through the Agribusiness-and Marketing Assistance Service, to maintain a Farmers and Fisherfolk Enterprise Development Information System to:
- Assist government in formulating plans and programs on enterprise development.
- Enable producer groups, private sector, LGUs, and potential donors to respond to needs of local and world markets and generate resources for further enterprise development.
- Section 10 mandates that the information system contain:
- A list of possible and implemented programs and projects.
- A registry of agricultural and fisheries enterprises.
- A roster of private companies engaged in these enterprises or expressed interest in participating in the Program.
- Other information identified by the Department or by the Council.
Government procurement and incentives
- Section 11 authorizes national and local government agencies to directly purchase agricultural and fishery products from accredited farmers and fisherfolk cooperatives and enterprises to promote and support enterprise development.
- Section 11 limits direct purchase to agricultural and fishery products necessary for the performance of the agencies’ respective mandates.
- Section 11 exempts such procurement by national and local government agencies from the bidding process under relevant government procurement laws.
- Section 11 requires that the agencies undergo negotiated procurement under applicable guidelines of the Government Procurement Policy Board.
- Section 12 grants tax incentives and exemptions, notwithstanding any general or special law to the contrary:
- Gifts and donations of real and personal properties are exempt from donor’s tax.
- LGUs must exempt structures, buildings, and warehouses used for storage of farm inputs and outputs from real property tax, provided the assessed value does not exceed Three million pesos (P3,000,000.00).
- The Land Bank of the Philippines must provide preferential rates and a special window to accredited farmers and fisherfolk enterprises.
- Exemptions from income tax may be provided for income arising from enterprise operations, provided the farmer and fisherfolk cooperatives and enterprises register as barangay micro-business enterprises (BMBEs) under Republic Act No. 9178, the “Barangay Micro-Business Enterprises (BMBEs) Act of 2002.”
Implementing rules, separability, repeal, effectivity
- Section 13 requires the DA, in consultation with the DTI and the DOF, to formulate implementing rules and regulations within sixty (60) days from the date of effectivity of Republic Act No. 11321.
- Section 14 provides a separability clause: if any provision is declared invalid or unconstitutional, remaining provisions not affected remain in full force and effect.
- Section 15 includes a repealing clause: all laws and executive or administrative orders, rules and regulations inconsistent with Republic Act No. 11321 are repealed or modified accordingly.
- Section 16 sets effectivity at fifteen (15) days after publication in the Official Gazette or in a newspaper of general circulation.
Enactment and dates
- Republic Act No. 11321 is approved April 17, 2019.
- The Act’s effectivity runs fifteen (15) days after its required publication under Section 16.