Objectives
- Increase supply of wood and forest products.
- Accelerate reforestation and rehabilitate denuded forest lands.
- Conserve soil, water, biodiversity, and enhance environmental conditions.
- Generate income and livelihood for upland populations.
- Promote equitable access to forest resources.
Definitions
- SIFMA: Agreement granting rights to develop and manage a small tract of forest land.
- SIFMA Holder: Qualified participant with a SIFMA.
- SIFP: Land planted primarily with trees for manufacturing and wood supply.
- Brushland: Land covered with shrubs or stunted trees.
- Open and Denuded Land: Land depleted of natural forest cover.
- DENR, Secretary, FMB, RED, RTD, PENRO, CENRO, LGU, NGO: Various government and organizational units with specific roles.
Areas Available for SIFMA
- Covers grasslands, brushlands, open and denuded forest lands under DENR jurisdiction.
- Excludes lands under National Integrated Protected Areas System, ancestral domain/land claims, vested rights, or conflicting claims.
- Areas with pending ancestral claims are closed to SIFMA until claims are denied or resolved.
Size of the Area
- Individuals/families: 1 to 10 hectares.
- Associations/cooperatives: Over 10 hectares up to 500 hectares.
Selection and Publication of SIFMA Sites
- CENRO identifies suitable and accessible sites devoid of claim conflicts.
- Validated by LGUs through ground validation.
- Approved sites are mapped and records maintained by FMB.
- Public information campaigns conducted post-approval.
Qualified Applicants
- Filipino individuals/families, preferably local residents; government employees need agency consent.
- Registered cooperatives/associations with financial and technical capacity.
Disqualified Applicants
- Those with canceled forestry agreements due to non-compliance.
- Applicants with officers involved in illegal activities or non-compliance.
- Existing holders of forest permits or licenses.
Assignment of Management Responsibility
- SIFMA duration: 25 years renewable for another 25 years.
- Issued to applicants; married couples receive joint titles.
- Transfer allowed to qualified persons or groups with required approvals.
- Transfers and cancellations documented and reported to relevant agencies.
Application Requirements
- Filing fees based on area size (ranging from P500 to P10,000).
- Sketch map of applied area.
- For individuals: community tax certificate, residency certification, and agency consent if employed.
- For cooperatives/associations: registration certificates, list of officers and members, board resolution.
Processing of Applications
- CENRO reviews applications for eligibility and area availability; conducts ground evaluation.
- PENRO approves applications up to 10 hectares; larger areas forwarded to RED.
- RED approves applications over 10 hectares; notices of approval or denial issued within specified timeframes.
Minimum Terms and Conditions of Agreement
- Management, technology, financial services provisions.
- Consultation and arbitration provisions.
- Prohibition of unauthorized land use conversion.
- Environmental protection and pollution control measures.
- Rehabilitation and protection obligations.
- Monitoring schemes with a three-year full planting requirement.
- Gender integration and workers' rights protections.
- Community development commitments.
- Tree species planting norms and land use restrictions.
- Prohibition of untested exotic species without clearance.
Incentives to SIFMA Holders
- Ownership and harvesting rights of planted trees and crops.
- Export permits under government allocation system.
- Exemption from forest charges.
- Compensation rights if agreement is canceled without cause.
- Priority in future permanent tenurial arrangements.
- Use of SIFMA as loan collateral with approval.
- Technical assistance for cooperative confederation.
Government Share
- Benefits include environmental enhancement, conservation efforts, employment generation, infrastructure, production increases, and protection of natural resources.
- Income taxes and rentals collected with graduated rental fees after the fifth year.
Integration into Larger Organizations
- Encouragement for SIFMA holders to form cooperatives or federations.
- DENR to provide assistance for technical capacity, market access, social services, and financing.
- Explore incentives for IFMA holders to transfer management to employees or occupants.
Grounds for Cancellation
- Failure to develop area within three years.
- Fraud, dummy status, unauthorized transfers, or land use conversion.
- Unauthorized construction, illegal cutting of natural trees.
- Refusal of entry to authorized officials.
- Labor law violations, abandonment, non-payment of fees.
- Voluntary surrender or public interest requirements.
Monitoring and Evaluation
- Registration of SIFMAs with FMB within 15 days of issuance.
- Reporting through CENRO, PENRO, RED, and FMB with consolidated summaries to Secretary.
- Site monitoring by a team including LGUs, NGOs, and CENRO.
- Use of indicators such as seedling production, area planted, environmental measures, progress maps, photos, and issue reporting.
Program Management
- FMB as national coordinator: policy formulation, site evaluation, program coordination, reporting, and institutional linkage.
- RED implements regionally: approves larger applications, cancellations, transfers, data management, and reporting.
- PENRO manages province level: approves smaller applications, cancellations, transfers, reporting, and data base maintenance.
- CENRO executes locally: site identification, application processing, monitoring, reporting, and coordination with stakeholders.
Repealing Clause
- Amends or repeals inconsistent provisions of prior administrative and ministerial orders including MAO No. 4, DAO No. 60, and others.
Effectivity
- The Order takes effect immediately upon signing on August 23, 1996.