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7/24/13 7:HILIPPINE ENVIRONMENT LAWS - CHAN ROBLES VIRTUAL LAW LIBRARY

Page 1ttp://www.chanrobles.com/republicactno7900.htm#.Ue-9ixa9aFI

WEDNESDAY, JULY 24, 2013

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CLICK HERE FOR THE LATEST PHILIPPINE LAWS, STATUTES & CODE

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This web page contains the full text of

Republic Act No. 7900

AN ACT TO PROMOTE THE PRODUCTION, PROCESSING, MARKETING AND DISTRIBUTION

OF HIGH-VALUED CROPS, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES.

REPUBLIC ACT NO. 7900

LAWTUBE POLITICS IP L

Philippine Law Agriculture Crops The Philippines Cover Crops

Philippine Law Agriculture Crops Cover Crops Republic

Republic Farming Crops Seeds Crops Companies Act

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Review

MCLE:

AN ACT TO PROMOTE THE PRODUCTION,PROCESSING, MARKETING AND DISTRIBUTIONOF HIGH-VALUED CROPS, PROVIDING FUNDS

THEREFOR, AND FOR OTHER PURPOSES.

Section 1. Title. This Act shall be known as the "High

Value Crops Development Act of 1995."

Sec. 2. Declaration of Policy. It is hereby declared t

policy of the State to accelerate the growth a

development of agriculture in general, enhan

productivity and incomes of farmers and the ru

population, improve investment climate, competenc

and efficiency of agribusiness and develop high-va

crops as export crops that will significantly augment t

foreign exchange earnings of the country, through an a

out promotion of the production, processing, marketi

and distribution of high-value crops in suitable areasthe country.

The State shall be guided by the principles that land h

a social function and land ownership has a soc

responsibility. As such, owners and lessees

agricultural land, being stewards, have the obligation

cultivate the lands they own or lease and make the la

economically productive on a sustainable a

environmentally friendly manner. The State has the rig

to expropriate lands not utilized for the benefit of t

community and the country as a whole.

The State shall effect an efficient use of land and ot

productive resources with due regard to ecologi

balance and environmental protection, ru

development, equity consideration, mobilization

human resources, and increased agro-indust

production for the alleviation of poverty and sustaina

growth objectives.

Sec. 3. Scope of Application. This Act shall cov

upland dwellers as well as lowland tenants, indigeno

and cultural communities, Comprehensive Agrar

Reform Program (CARP) beneficiaries, upland fa

owners, farmers, farme

rganizations/associations/cooperatives, commun

associations and farmworkers, and to the extent her

provided, the departments, offices, agenci

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DebtKollect

IntellectualProperty

identified by the Department of Agriculture as k

commercial crop production areas.

Sec. 4. Definition of Terms. For purposes of this A

the term:

a. "Non-traditional crops" refer to crops other than r

corn, coconut and sugar.

. "High-value crops (HVC)" these are crops other th

traditional crops which include, but are not limited to: cof

and cacao, fruit crops (citrus, cashew, guyabano, papa

mango, pineapple, strawberry, jackfruit, rambutan, duri

mangosteen, guava, lanzones, and watermelon), root cr

(potato and ubi), vegetable crops (asparagus, brocc

cabbage, celery, carrots, cauliflower, radish, tomato, b

pepper, and patola), legumes, pole sitao (snap beans a

garden pea), spices and condiments (black pepper, gar

ginger, and onion), and cutflower and ornamental foliplants (chrysanthemum, gladiolus, anthuriums, orchids, a

statice).

c. "Idle and abandoned land" refers to any agricultu

land not cultivated, titled or developed to produce any c

nor devoted to any specific economic purpose continuou

for a period of three (3) years immediately prior to t

receipt of notice of acquisition by the government

provided under the CARP.

d. "Alienable and disposable lands" refer to those lands

the public domain which have been the subject of the pres

system of classification and declared as not needed for for

purposes.

e. "Forest land" refers to the lands of the public dom

which have not been declared as alienable or disposab

public forests, permanent forests or forest reserves, for

reservations, timberlands, grazing lands, game refuge, a

ird sanctuaries.

Sec. 5. Site Identification. The Department of AgrarReform and the Department of Agriculture,

coordination with the Department of Environment a

Natural Resources, and the municipal governme

concerned, shall identify the broad areas suitable

high-valued crops production, within six (6) mon

after the effectivity of this Act: Provided, That such s

identification shall be reviewed at appropriate interv
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to ensure consistency with the agrarian reform progr

and the national land use policy.

Sec. 6. Tenurial Arrangement. Farmer cooperativ

may lease the land for a period of twenty-five (25) yea

and not to exceed one thousand hectares (1,000 has.)

area.

Sec. 7. Farm Model. For the program, farmers madopt the cooperative system in putting up economica

sized farms for high-value crop farming. Farm

members shall collectively manage individual far

which includes contracting process and means

production; planning and coordinating crops varieti

and raising breed, hectarage, distribution and so

production measures with reference to the market

shall serve. Said farm models may be replicated

farmers' organizations all over the country.

Sec. 8. High-Value Crops Development Fund (HVCDF).For the purpose of providing the funding requirements

the production, marketing, and processing of high-va

crops, and the establishment of low-cost credit

qualified project proponents, there is hereby created

High-Value Crops Development Fund (HVCDF), with

initial amount of One billion pesos (P1,000,000,000). T

HVCDF shall be sourced from the Comprehens

Agricultural Loan Fund (CALF) and shall be managed

the Land Bank of the Philippines (LBP) and t

Development Bank of the Philippines (DBP). Othsources of funds, including but not limited to borrowin

from local and international financial institutions, sh

also be considered to further support the progra

Provided, That sixty percent (60%) of the HVCDF sh

be utilized for direct lending to high-value cr

producers while the remaining forty percent (40%) sh

be allocated by the Department of Agriculture

guarantee loans granted by private financial institutio

toward high-value crop production through exist

guarantee institutions. The Department of Agricultu

which is directly responsible for the management of tHVCDF, is hereby authorized to designate the Land Ba

of the Philippines and the Development Bank of t

Philippines to manage the direct lending operations

the sixty percent (60%) portion of the HVCDF throu

LBP and DBP facilities or their conduits.

All financial institutions, whether public or private, sh


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be tapped to support the program. Participating ban

are hereby exempted from the compliance requireme

of Presidential Decree No. 717: Provided, That they sh

lend a minimum of five percent (5%) of their loana

funds without alternative compliance directly to farme

associations or cooperatives.

Other sources of funds, including but not limited borrowings from local and international financ

institutions, shall also be considered to further supp

the program.

Sec. 9. Incentives. The proponents of the progr

shall be entitled to the following incentives:

a. Crop insurance the insurance program of the Philipp

Crop Insurance Corporation (PCIC) shall be expanded to co

high-value crops. The premium rates shall be set not on

asis of the performance of previous programs specificallyrice and corn;

. Credit assistance the HVCDF shall be loaned out

farmers' organizations/ associations/cooperatives compo

of, but not limited to, CARP beneficiaries, subject to

prevailing Land Bank interest rates;

c. Credit Guarantee to enhance the bankability

projects, a credit guarantee cover shall be extended by

Quedan and Rural Credit Guarantee Corporat

(QUEDANCOR) which shall thereby be provided withcommensurate guarantee fund, in the form of equity, out

the HVCDF;

d. Grace period on lease of government lands payments

project proponents shall effect payment on the lease

earlier than two (2) years after the lease agreement is sign

and approved. The grace period shall be determined by t

gestation periods of the crops;

e. Tax exemption project proponents as defined in Sect7 of this Act shall be entitled to the following

exemptions:

1. Exemptions from taxes and duties subject to

provisions of Article 62 of Republic Act No. 6938 or

Cooperative Code of the Philippines;


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2. Exemption from the value-added tax in accordance w

Section 103 of the National Internal Revenue Code,

amended; and

3. Exemption from taxes, fees and charges under Title O

of Book Two of the Local Government Code of 1991

accordance with Section 133(n) of the said Code.

f. Market linkage the Department of Agriculture,

coordination with the Department of Trade and Indust

shall link-up agribusiness cooperatives directly w

consumers cooperatives, agro-processing companies,

exporters to provide marketing outlets and assure relativ

higher and stable prices. Agro-processing firms buy

directly from project proponents shall be granted tax rebat

To ensure health and proper trading, the agribusine

development group of the Department of Agricultu

shall establish and enforce standards in gradisampling and inspection, tests and analys

specifications, nomenclature, units of measureme

code of practice and packaging, preservati

conservation and transportation of high-value crops.

g. Technical and infrastructure support techni

support on research and extension, infrastructu

development, financial and market information shall

provided by the Department of Agriculture, Departme

of Trade and Industry, Department of Science a

Technology, Cooperative Development Authority, stauniversities and colleges and other relevant governme

agencies;

h. Post harvest facilities access to post harv

facilities, storage and distribution/transport facilities

existing government agencies shall be facilitat

Assistance shall be given to qualified and via

farmers/growers cooperatives in the availment of s

loans or grants for the construction of post-harve

processing and storage facilities. Guidelines for teventual transfer of ownership of these facilities to t

proponent shall be formulated by the Department

Agriculture;

i. Good seeds and planting materials the Departme

of Agriculture, in coordination with the state universit

and colleges, the Department of Trade and Industry, a


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farmers organizations shall make good seeds a

materials readily available to farmers/farme

cooperatives to ensure high yield and good qual

produce. However, the project proponents may

allowed to import, free of duties, high qua

seeds/planting materials subject to quarantine laws a

Section 15 of Republic Act No. 7083 or the Seed Indus

Development Act of 1992; and

j. Fiscal incentives the same fiscal incentives grant

by the Board of Investments shall be automatica

granted to project proponents.

Sec. 10. Inter-Agency Committee. A committ

composed of representatives from the Department

Agriculture, the Department of Agrarian Reform, t

Bangko Sentral ng Pilipinas, the Land Bank of t

Philippines, the Development Bank of the Philippines, t

Cooperative Development Authority, the DepartmentScience and Technology, the Department of Trade a

Industry, the Department of Environment and Natu

Resources, and the Department of the Interior and Lo

Government and one (1) each from the small farm

and commercial producers sectors to be designated

the Secretary of Agriculture, shall formulate a

prescribe, after public hearing and publication

required by law, the implementing rules and regulatio

in order to carry out the provisions of this Act. T

representatives from the Department of Agriculture athe Department of Trade and Industry shall be t

chairman and the vice-chairman, respectively, of t

committee.

The Secretary of the Department of Agriculture sh

report to both Houses of Congress on the status of t

High-Value Crops Development Program biannually.

Sec. 11. Agribusiness Development Group. T

agribusiness development group of the Department

Agriculture shall be strengthened to impleme

coordinate and monitor the program based on the ruand regulations setforth by the inter-agency committ

Aside from its usual functions, it shall be tasked

perform the following functions:

a. Assist in the formulation of general and specific polic

for the development of high-value crops;


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. Set up the appropriate system to monitor the utilizat

of the HVCDF and shall furnish the Bangko Sentral

Pilipinas regular reports on the financial institutio

compliance to the program;

c. Extend assistance in marketing and distribution of hi

value crops through monitoring and dissemination of mar

information, including identification of the local suppdemand situation, domestic market matching and overs

market intelligence and promotion activities on high-va

crops;

d. Enjoin the Department of Transportation a

Communications to effect a more efficient, regular, adequa

suitable, and economical means of transporting and

shipping of high-value crops, for purposes of reduc

marketing costs and ensuring stable consumer supply;

e. Encourage the establishment of wholesale markets

identified major centers of the country: Provided, T

agricultural produce collection centers may also

established in areas where feasible, which may also serve

uying stations of farm products, packaging houses, pick

points and meeting places of farmers'/growers' cooperative

f. Establish linkages with various government and priv

research institutions for the conduct of studies a

researches designed to promote the production, market

and processing of high-value crops;

g. Conduct farmers' training programs primarily aimed

increasing their knowledge on production technologies a

on market potentials and prospects for various types of hi

value crops, through the DA-Agricultural Training Instit

(ATI), the DTI or the LGU's technicians or by contract

agriculturists and marketing specialists from private

academic institutions;

h. Establish experimental stations and seed farms for

development of varieties suitable to the agro-clima

conditions of the area and markets that will provide great

value added to high-value crops; and

i. Devise and maintain a system for regularly obtain

information on current and future production, their pri

and movement in trade, to determine and effect a balanc

distribution of high-value crops by means of inter-trading


9/10



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intra-trading among the established wholesale markets. Su

amount as may be needed for the initial operating expen

of the group shall be charged to any available funds in t

appropriation for current operating expenditures of

Department of Agriculture. Thereafter, the amount necess

for its operations shall be included in the annual Gene

Appropriations Act.

Sec. 12. Repealing Clause. All laws or parts theredecrees, orders, rules and regulations inconsistent w

the provisions of this Act are hereby repealed

modified accordingly: Provided, however, That nothing

this Act shall be construed or applied as amending t

CARL and other laws on agrarian reform.

Sec. 13. Separability Clause. If any of the provisions

this Act is declared invalid, the other provisions

affected thereby shall remain in full force and effect.

Sec. 14. Effectivity Clause. This Act shall take eff

immediately following its publication in a newspaper

general circulation or in the Official Gazette, whichev

comes first.

Approved: 23 February 19

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RA 7900 (High Value Crop)

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