( Mjf fo fc rftn r^

SEVENTEENTH CONGRESS OF TH E
REPUBLIC OF TH E PHILIPPINES
First Regular Session

'16 DEC 13 P5 ;37

SENATE

RECEIVED BY;

1281

S e n a te B ill No.
(In S u b s titu tio n of S en ate Bill No. 50)

P rep ared a n d su b m itte d jo in tly by th e C o m m ittees on A griculture a n d Food, a n d

W ays a n d M eans, w ith S e n a to r P a n g ilin a n a s a u th o r th ereo f

AN ACT
INSTITUTING TH E FARM ERS AND FISH ER FO LK EN TER PR ISE DEVELOPMENT
PROGRAM O F TH E DEPARTMENT O F AGRICULTURE AND FO R O TH ER
PU RPO SES

Be it enacted by the Senate an d the H ouse of Representatives o f the Philippines in

Congress assem bled:
1
2

SECTION 1. S h o r t T itle , - T his Act sh all be k now n a s th e Sagip S a k a Act of

2016 .

SEC. 2 . D e c la r a tio n o f P o licy . - It is th e d eclared policy of th e S ta te to

achieve

su sta in a b le

m o d ern

a g ric u ltu re

and

food

secu rity

by

tra n sfo rm in g

a g ric u ltu ra l a n d fishing c o m m u n itie s to re a c h th e ir full p o ten tial, im proving

fa rm e rs a n d fish e rs incom es a n d q u ality of life, a n d bridging g ap s th ro u g h public-

private p a rtn e rs h ip s.

T ow ards th e se e n d s, th e S ta te recognizes th e e sse n tia l role of th e private

secto r in p rom oting a n d s u p p o rtin g e n te rp rise developm ent in th e a g ric u ltu re a n d

10

fisheries secto rs, opening u p of o p p o rtu n itie s a n d m a rk e ts for a g ric u ltu ra l a n d

11

fishery

12

e n tre p re n e u rs h ip am ong o u r farm ers a n d fisherfolk.

13

p ro d u c ts

in

th e

d o m estic

and

w orld

m a rk e ts,

and

developing

In p u rs u a n c e of th is policy, th e S ta te sh all s tre n g th e n th e fa rm e rs a n d

14

fisherfolk

e n te rp rise

15

com prehensive

16

im p lem en tatio n of e n te rp rise developm ent in itiativ es, co n so lid ate th e roles of

17

different g overnm ent agencies involved

18

developm ent, intensify th e b u ild in g of e n tre p re n e u rs h ip c u ltu re am o n g farm ers a n d

and

developm ent p ro g ram

holistic

a p p ro a c h

in

in

of governm ent by e sta b lish in g

th e

fo rm u latio n ,

fa rm e rs

and

co o rd in atio n

fisherfolk

and

e n te rp rise

fisherfolk, a n d provide incen tiv es to p riv ate e n titie s th a t s u p p o rt th e fa rm e rs a n d

fisherfolk e n te rp rise developm ent in itiativ es of th e governm ent.

SEC. 3 . T h e F a r m e r s a n d F is h e r f o lk E n t e r p r is e D e v e lo p m e n t P r o g ra m .

T here is h ereb y e sta b lish e d th e F a rm e rs a n d Fisherfolk E n terp rise D evelopm ent

Program , h e re in referred to a s th e Program , w hich sh all refer to th e com prehensive

se t of objectives, ta rg e ts, a n d ho listic a p p ro a c h a n d a ss is ta n c e in p ro m o tin g th e

e sta b lis h m e n t of e n te rp ris e s involving a g ric u ltu ra l a n d fishery p ro d u c ts. It sh all be

in te g ra te d

M odernization P lan, a n d th e Micro, Sm all a n d M edium E n te rp rise s D evelopm ent

10

and

be

m ad e

c o n siste n t

w ith

th e

A griculture

and

F ish eries

Plan.

11

In th e identification a n d p rio ritizatio n of a g ric u ltu ra l a n d fishery p ro d u c ts

12

th a t will be su p p o rte d , th e P rogram sh all m ak e u s e of sc ie n c e -b a se d m ethodologies,

13

s u c h a s th e value c h ain an aly sis.

14

T he form s of a s s is ta n c e to be provided u n d e r th e P rogram sh all include:

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1) Im provem ent of p ro d u c tio n

and

productivity,

in clu d in g

a g ric u ltu ra l

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e x ten sio n services, skills developm ent, provision of p ro d u ctio n in p u ts , eq u ip m e n t

17

a n d fa c ilitie s/in fra stru c tu re for p ro d u c tio n a n d p o st-p ro d u c tio n activities;

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19

2) Im provem ent of p ro d u c e rs a n d e n te rp ris e s a cc e ss to fin an cin g in th e

form of cred it g ra n ts a s well a s crop in su ra n c e ;

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21

3) Provision of a cc e ss to im proved technologies th ro u g h re s e a rc h a n d

developm ent; a n d

22
23

4) Provision of b u s in e s s s u p p o rt a n d developm ent services, p a rtic u la rly in

th e a re a s of a c c e ss to m a rk e ts, m a rk e tin g , a n d netw orking.

24
25

SEX3. 4 . C o v e ra g e o f th e P r o g ra m . - The Program sh all cover th e following

a re as:

26
27

a. A gricultural a n d fisheries p ro d u c tio n , in clu d in g p ro cessin g of fish eries

a n d a g ri-b a sed p ro d u c ts a n d farm in p u ts ;

28

b. A cquisition of w ork a n im a ls, farm a n d fish eiy e q u ip m e n t a n d m ach in ery ;

29

c. A cquisition of seed s, fertilizer, p oultry, livestock, feeds a n d o th e r sim ilar

30

item s:

1
2
3

d. P ro cu rem e n t of a g ric u ltu ra l a n d fish eries p ro d u c ts for sto rag e, trad in g ,

p ro cessin g a n d d istrib u tio n ;
e. C o n stru ctio n ,

a cq u isitio n

and

re p a ir

of

facilities

for

p ro d u ctio n ,

pro cessin g , storage, tra n s p o rta tio n , c o m m u n icatio n , m a rk e tin g a n d s u c h o th e r

facilities in s u p p o rt of ag ric u ltu re a n d fisheries;

6
7
8
9

f.

W orking c ap ital for a g ric u ltu re a n d fish eries g ra d u a te s to en ab le th e m to

engage in a g ric u ltu re a n d fisheries re la ted econom ic activities;

g. A grib u sin ess activities w hich su p p o rt soil a n d w ater c o n serv atio n a n d
ecology-enhancing activities;

10

h. W orking c ap ital for long g e sta tin g p ro jects; an d

11

i.

12

The F a rm e rs a n d F isherfolk E n te rp rise D evelopm ent C ouncil, c re ate d u n d e r

13

Section 8 of th is Act, m ay in clu d e o th e r a re a s of in terv en tio n in o rd e r to ex p an d a n d

14

su p p o rt e n te rp rise developm ent in th e a g ric u ltu re a n d fish eries sector.

15
16

C redit g u a ra n te e s on u n co llateralized lo a n s to fa rm e rs a n d fisherfolk.

SEC. 5 . B e n e f ic ia r ie s o f t h e P r o g ra m . - The possible p ro p o n e n t g ro u p s or

beneficiaries of th e Program are th e following:

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a. E xisting p ro d u c e r g ro u p s w ith m em b ers p ro d u c in g com m odities w hich

18

a re in clu d ed in th e priority com m odity v alu e c h a in s a n d have p o ten tial to in crease

19

th e ir m a rk e tab le su rp lu s;

20

b. F a rm e r a n d fish er g ro u p s w hich hav e p o te n tia l to p ro d u ce m a rk e tab le

21

s u rp lu s a n d d e m o n stra te w illingness to v o lu n tarily a d o p t c lu ste rin g w ith o th e r

22

g ro u p s a n d forge c o n tra c ts or form al m a rk e tin g a g re em e n ts w ith b u y e rs or private

23

in term ed iaries;

24

c. P ro d u cer g ro u p s or c lu ste r of grow ers th a t are e ith e r o p eratio n al a n d /o r

25

show a w illingness to u n d e rg o cap acity b u ild in g on e n te rp rise developm ent a n d

26

m a n ag e m e n t; a n d

27

d. Micro, sm all a n d m ediu m scale p ro c e sso rs, co n so lid ato rs, ex p o rters, a n d

28

o th e r e n te rp rise s, w ho a re willing to a s s is t p ro d u c e r g ro u p s in v ertical c lu ste rin g or

29

jo in t b u s in e s s p la n n in g , a n d forge c o n tra c ts o r form al m a rk e tin g a g re em e n ts w ith

30

s u c h p ro d u c e r groups. J o in t b u s in e s s p la n n in g a n d in v e stm en ts of th e p ro d u c e r
3

g ro u p s a n d a g ro -p ro c e sso rs will b e su p p o rte d if it will re s u lt in in c re ase d

en g ag em en t of th e p ro d u c e r g ro u p s in value ad d in g activities.

F a rm e rs a n d fish e rs w ho a re n o t m em b ers of a n y o rg an izatio n o p eratin g in

th e priority com m odity v alu e c h a in m u s t jo in th e p ro p o n e n t g ro u p s for th e m to be

eligible e ith e r a s a m em ber of th e p ro p o n e n t gro u p or a s su p p lie r to th e en terp rise.

SEC. 6 . I m p le m e n tin g A g e n c y a n d P a r t n e r A g e n c ie s. - The D e p artm en t of

A griculture (DA) sh all be th e im p lem en tin g agency of th e Program . It sh all ta p th e

a ss is ta n c e , expertise a n d re so u rc e s of th e following ag encies, s u c h a s, b u t n o t

lim ited to, th e Philippine C ocon u t A uthority, th e N ational D airy A uthority, th e

10

B u re a u of Soils a n d W ater M an ag em en t, th e P hilippine C en ter for P ost-H arvest

11

D evelopm ent a n d M echanization, B u re a u of F ish eries a n d A quatic R eso u rces,

12

A gricultural T rain in g In s titu te , A g ricu ltu ral C redit a n d Policy C ouncil, a n d th e

13

B u re a u of A gricultural R esearch.

14

The DA sh all likew ise co llab o rate a n d sec u re th e tech n ica l su p p o rt a n d

15

a s s is ta n c e of o th e r d e p a rtm e n ts a n d th e ir a tta c h e d ag en cies a n d c o rp o ra tio n s to

16

su p p o rt e n te rp rise developm ent in th e priority com m odity v alu e c h ain , s u c h as: th e

17

D e p a rtm e n t of A grarian Reform , th e D e p a rtm e n t of E n v iro n m en t a n d N atu ral

18

R esources, th e D e p artm en t of Science a n d Technology, th e D e p artm en t of T rade

19

a n d In d u stry , a n d th e D e p artm en t of th e In terio r a n d Local G overnm ent.

20

SEC. 7 . P r iv a te S e c to r P a r t n e r s h i p . - P a rtn e rs h ip s or allian ces betw een

21

farm er a n d fish e rs g ro u p s a n d th e p rivate secto r m ay be form ed to im prove m a rk e t

22

a cc e ss of p ro d u c e r groups.

23
24
25
26

T he following c rite ria sh all be co n sid ered in th e selection of private secto r

p a rtn e rs:
a) C om m itted to e n te r into m a rk e tin g c o n tra c t or b u y -b a c k ag reem en t w ith
th e p ro d u c e rs group;

27

b) Will u n d e rta k e technology tra n s fe r on th e provided goods a n d /o r services;

28

c) F in an cial

29

en terp rise; a n d

and

organ izatio n al cap ab ility

to

u n d e rta k e

th e

p ro p o sed

1
2

d) E sta b lish e d

a c tu a l

experience

in

u n d e rta k in g

or im p lem en tin g th e

p ro p o sed en terp rise.

Private sec to r p a rtn e rs m ay also provide or d o n a te e q u ip m e n t, m ach in eries,

a n d o th e r form s of a s s is ta n c e to fa rm e rs a n d fisherfolk engaging in e n te rp rise

developm ent.

The DA sh all issu e th e g u id elin es a n d im pose th e qu alificatio n re q u ire m e n ts

in recognizing private secto r p a rtn e rs of th e Program .

SEC. 8. C re a tio n o f th e F a r m e r s a n d F is h e r f o lk E n t e r p r is e D e v e lo p m e n t

C ounciL - To oversee th e p ro p e r im p lem en tatio n of th e Program , th e F a rm e rs an d

10

Fisherfolk E n te rp rise D evelopm ent C ouncil is h ereb y created . It sh all be com posed

11

of: (a) th e S ecretary of DA, or h is duly a u th o riz ed re p re se n ta tiv e w ho is a t le a s t a n

12

U n d ersecretary , w ho sh all be th e c h air, (b) a re p re se n ta tiv e of th e D e p artm en t of

13

T rade a n d In d u s tiy (DTI), w ho sh all likew ise a t le a s t be a n U n d ersecretary ; (3) a

14

re p re se n ta tiv e of th e D e p a rtm e n t of th e In terio r a n d Lxjcal G overnm ent (DILG); (4) a

15

re p re se n ta tiv e of th e D e p artm en t of F in an ce (DOF); (5) C ooperative D evelopm ent

16

A uthority

17

cooperatives or a sso c iatio n s; (7) a re p re se n ta tiv e of a n a tio n a l o rg an izatio n of

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fisherfolk cooperatives or asso c iatio n s; a n d (8) two (2) re p re se n ta tiv e s from th e

19

a g ric u ltu re , food, r e s ta u r a n t a n d b u s in e s s secto rs.

20

(CDA); (6) a re p re se n ta tiv e of a n a tio n a l o rg an izatio n

SEC.

9.

L ocal

C o u n c ils f o r

F a rm e rs

and

F is h e r f o lk

of farm ers

E n t e r p r is e

21

D e v elo p m e n t. - The A gricultural a n d F ishery C ouncils (AFCs) of th e Philippine

22

C ouncil for A griculture a n d F ish eries sh all provide th e m e c h a n ism s for private

23

secto r p a rtic ip a tio n in th e developm ent p ro c e sses a t th e regional, provincial, a n d

24

c ity /m u n ic ip a l levels.

25

SEC.

1 0.

C r e a tio n

of

th e

F a rm e r

and

F is h e r f o lk

E n t r e p r is e

26

D e v e lo p m e n t F u n d . - To su p p o rt th e im p lem en tatio n of th e Program , th e re is

27

h ereb y c re ate d a F arm er a n d F isherfolk E n te rp rise D evelopm ent F u n d , to be fu n d ed

28

th ro u g h a n n u a l general a p p ro p ria tio n s, g ra n ts from m u ltilate ra l a n d b ilateral

29

agencies, a n d d o n a tio n s from th e p riv ate sector.

T he D evelopm ent F u n d sh all be u s e d to pro m o te b u s in e s s o p p o rtu n ities

available in th e a g ric u ltu re a n d fish eries secto r, a n d to fu n d p ro jects in a re a s

identified in Section 4 of th is Act.

In o rd e r to e n s u re a holistic a p p ro a c h in s u p p o rtin g p ro jects in identified

priority value c a sh , th e D e p artm en t sh all, in ad d itio n to th e D evelopm ent F u n d , ta p

re so u rc e s

developm ent p ro g ram s,

governm ent u n its a n d farm ers a n d fisherfolk o rg an izatio n s a n d e n te rp rise s in th e

form of c a sh , la n d , b u ildings, lab o r, or m a ch in eries a n d eq u ip m en t. R eleases from

10

under

th e

m a n a g e m e n t of its
and

re q u ire

a tta c h e d

c o u n te rp a rt

ag en cies a n d

fu n d in g

from

com m odity

p a rtn e r local

th e D evelopm ent F u n d sh all be co n sid ered a s a p roject g ran t.

11

SEC. 11. F a r m e r s a n d F is h e r f o lk E n t e r p r is e D e v e lo p m e n t I n f o r m a tio n

12

S y s te m . - The D e p artm en t of A griculture, th ro u g h th e A g rib u sin ess a n d M arketing

13

A ssistan ce

14

D evelopm ent Inform ation S ystem to a s s is t g o v ern m en t in fo rm u latin g p la n s a n d

15

p ro g ram s on e n te rp rise developm ent, a n d to en ab le p ro d u c e r g ro u p s, th e private

16

sector, local governm ent u n its , a n d p o ten tial d o n o rs to re sp o n d to th e n e e d s of th e

17

local a n d w orld m a rk e ts a n d in g e n eratin g re so u rc e s for fu rth e r e n te rp rise

18

developm ent.

19

im p lem en ted p ro g ram s a n d

20

e n te rp rise s, a n d private co m p an ies engaging th e se e n te rp rise s or have ex p ressed

21

in te re st in p a rtic ip a tin g in th e Program , a n d o th e r info rm atio n th a t m ay be

22

identified by th e D e p artm en t or by th e C ouncil.

Service,

The

sh all

m a in ta in

inform ation

sy stem

F a rm e rs

sh all

and

c o n tain

Fisherfolk

E n terp rise

list of p o ssib le

and

projects; a reg istry of a g ric u ltu ra l a n d fish eries

23

SEC. 1 2 . D ire c t P u r c h a s e b y N a tio n a l a n d L o c a l G o v e rn m e n t A g e n c ie s.

24

- To prom ote a n d su p p o rt farm ers a n d fisherfolk e n te rp rise developm ent, n a tio n a l

25

and

26

a g ric u ltu ra l

27

cooperatives a n d e n terp rises: Provided, T h at, said a g ric u ltu ra l a n d fishery p ro d u c ts

28

are n e c e ssa ry in th e p erfo rm an ce of th e ir respective m a n d a te s.

local

governm ent
and

agencies

flsh eiy

are

p ro d u c ts

h ereb y
from

m a n d a te d

accred ited

to

directly

fa rm e rs

and

p u rc h a s e
fisherfolk

29

For p u rp o s e s of th is Act, th e p ro c u re m e n t by n a tio n a l a n d local governm ent

30

agencies of said a g ric u ltu ra l a n d fishery p ro d u c ts shall be exem pt from th e

6

a p p licatio n

p ro c u re m e n t law s: Provided, T h at, sa id ag en cies sh all u n d erg o a n eg o tiated

p ro c u re m e n t u n d e r th e applicable g u id elin es of th e G overnm ent P ro cu rem e n t Policy

B oard.

5
6

of th e

SEC. 13.

bidding

p ro c e ss

p re scrib ed

under

relev an t

governm ent

T a x In c e n tiv e s a n d E x e m p tio n s . - The provisions of an y general

or special law to th e c o n tra ry notv^dthstanding:

a. G ifts a n d d o n a tio n s of re a l a n d p e rso n al p ro p e rtie s sh all be exem pt from

d o n o rs ta x a n d th e sam e sh all be co n sid ered a s allow able d e d u ctio n s from th e

g ro ss incom e of th e donor, in a cco rd an ce w ith th e provisions of th e N ational

10

In te rn a l R evenue Code of 1997, a s am en d ed :

11

d e d u ctio n sh all be equiv alen t to O ne H u n d re d Fifty p e rc en t (150%) of th e v alu e of

12

s u c h do n atio n .

Provided, T h at, th e allow able

13

The v a lu atio n of a d o n a tio n o th e r th a n m oney sh all be b a se d on th e

14

a cq u isitio n co st of th e p ro p erty a n d sh all ta k e into c o n sid eratio n its d ep reciated

15

value, if applicable.

16
17
18
19

b.

LGUs sh all identify local ta x es th a t m ay be w aived o r re d u c ed a n d offer

th e m a s incen tiv es to organic in p u t p ro d u c tio n a n d utilization;

c. The L and B an k of th e P hilippines sh all provide p referen tial ra te s a n d
special w indow to accred ited farm ers a n d fisherfolk e n terp rises; a n d

20

d. E xem p tio n s from incom e ta x m ay be provided for incom e a risin g from th e

21

o p e ra tio n s of th e e n te rp rise , a s provided u n d e r R epublic Act No. 9 1 7 8 , otherw ise

22

know n a s th e B aran g ay M icro-B usiness E n te rp rise s.

23

SEC. 14. Im p le m e n tin g R u le s a n d R e g u la tio n s . - W ithin sixty (60) d ay s

24

from th e d a te of effectivity of th is Act, th e D e p artm en t of A griculture (DA), in

25

c o n su lta tio n w ith th e D e p artm en t of T rad e a n d In d u s try (DTI), a n d th e D e p artm en t

26

of F inance, sh all fo rm u late th e ru le s a n d re g u la tio n s for th e p ro p e r im p lem en tatio n

27

of th is Act.

28

SEC. 15. S e p a r a b ility C la u s e . - If an y provision of th is Act is d eclared

29

invalid o r u n c o n stitu tio n a l, th e o th e r p ro v isio n s n o t affected by su c h d eclaratio n

30

sh all rem ain in full force a n d effect.

SEC. 1 6.

R e p e a lin g C la u s e . - All law s, executive a n d a d m in istra tiv e

o rd ers, ru le s a n d re g u la tio n s in c o n siste n t w ith th e foregoing provisions are h ereb y

rep ealed or m odified accordingly.

SEC. 17.

E f fe c tiv ity C la u s e . - T his Act sh all ta k e effect after fifteen (15)

d ay s from its p u b licatio n in th e Official G azette or in two (2) n e w sp a p ers of g eneral

circulatio n.

Approved,