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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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CHAN ROBLES VIRTUAL LAW
LIBRARYPHILIPPINE ENVIRONMENT LAWS - CHAN ROBLES VIRTULAW LIBRARY
CLICK HERE FOR THE LATEST PHILIPPINE LAWS, STATUTES & CODE
Sponsored by: The ChanRobles Group
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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RA 7900 (High Value Crop)
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7/24/13 7:HILIPPINE ENVIRONMENT LAWS - CHAN ROBLES VIRTUAL LAW LIBRARY
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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
subdivisions, branches or instrumentalities in the are
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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
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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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