The Department of Agriculture is the principal agency of the Philippine government responsible for the promotion of agricultural development growth. In pursuit of this, it provides the policy framework, helps direct public investments, and in partnership with local government units (LGUs) provides the support services necessary to make agriculture and agri-based enterprises profitable and to help spread the benefits of development to the poor, particularly those in rural areas.
MANDATE
The Department of Agriculture - RFU III is responsible for the promotion of agricultural development & growth through increased productivity. Thus, DA-RFU III shall provide the policy frameworks, help direct public investments & extend the support services necessary to make agriculture & agri-based enterprises profitable & to spread the benefits of development to the poor, particularly those in the rural areas.
MISSION
To help and empower farming and fishing communities and private sector to produce enough, accessible and affordable food for every Filipino and a decent income for all.
VISION
A modernized small holder agriculture and fisheries; a diversified rural economy that is dynamic, technologically advanced and internationally competitive. Its transformation is guided by the sound practices of resource sustainability, the principles of social justice and strong private sector participation.
Creation of DA : Presidential Decree # 461 dated May 17, 1974.
Re-Organization - 1987 pursuant to Executive Order 116 Series of 1987.
Republic Act No. 8178 – An Act replacing Quantitative Restrictions on Agricultural Products, Except Rice, with Tariffs, Creating the Agricultural Competitiveness Enhancement Fund or ACEF.
A. Declaration of Policy
The goals of the national economy are a more equitable distribution of opportunities, income and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the unprivileged.
B. Definition of Terms
1.ACEF- is a special Purpose Fund created by R.A. No. 8178, ‘Agricultural Tariffication Act” out of the proceeds of the in-quota MAV importation’s to help the agricultural sector become globally competitive, viable, efficient and sustainable.
2.MAV or Minimum Access Volume- refers to volume of a specific agricultural product that is allowed to be imported with lower tariffs as committed by the Philippines to the World Trade organization under the Uruguay Round Final Act.
C. ACEF Source
The in-quota tariff revenues from the importation through the MAV’s shall constitute the ACEF. The ACEF has been assigned an account called Special Account 183, which is automatically appropriated in the General Fund. The ACEF shall have a life of nine years beginning April 1996 until March 2005 after which all remaining balances shall revert to the General Fund.
D. ACEF Use
The ACEF shall finance projects and activities that will help enhance the competitiveness of the agriculture and/or fisheries sectors. The fund shall be specifically used for the CO expenditure and MOOE requirements of projects and for public investments. The total expenditures on all projects for ACEF assistance shall not exceed the available resources in Special Account 183.
E. Intended Beneficiaries
1.The ACEF shall have as priority beneficiaries/sectors/groups involved with agricultural products the QRs of which have been lifted under RA 8178 and/or covered by the MAV mechanism; and those affected by the country’s compliance with its WTO commitments; and
2.Those whose project beneficiaries include the small farmers and fisherfolk.
F.Eligible Project Proponents
1. Eligible project proponents for ACEF assistance would include any of the following:
a. Farmer’s and fisherfolk organizations, cooperatives, federations and/or consortia of these groups;
b.Agribusiness enterprises including industry associations;
c.Non-profit organizations such as NGOs, Pos and foundations;
d.Government organizations such as local government units (LGUs), government corporations, and other local and national government agencies; and
e.Academic and educational institutions such as StateUniversities and Colleges (SUCs) and private academic institutions.
2. Priority shall be accorded to joint venture undertakings between government and private sector groups to institutionalize transparency in project development, implementation, monitoring and evaluation in government programs. In projects where the LGU is the proponent, partnership with farmers and fisherfolk organization is a given project strategy, with the latter retaining the right to manage the ACEF extended to the project
G.Eligibility Requirements from Project Proponents
1.Private sector proponents must fall within the SME category;
2.All Project Proponents must possess the application and eligibility requirements provided for in Annexes A and B of this Order
Eligibility of Projects
1. General Principle
Projects and activities eligible for ACEF assistance shall be limited to those which are directly related to: (a) enhancing the global competitiveness of an agricultural product(s) in the immediate future; and (b) establishment of enabling mechanism for eligible proponents to access the ACEF assistance. Projects that shall have sector/industry-wide impact such as the establishment of common service facilities shall be prioritized.
2. Types, Activities and Services Eligible for ACEF Assistance
Section 8 of R.A. 8178 specifically listed those projects and activities that will enhance the competitiveness of agricultural products as follows:
ØIrrigation
ØFarm to market roads
ØPost-harvest equipment and facilities
ØCredit
ØResearch and development assistance such as policy analysis and advocacy, studies, socio-economic, market and scientific research, technology development and dissemination, training and methodological studies in agricultural data generation, storage analysis and dissemination among others.
ØMarketing infrastructure
ØProvision of market information
ØRetraining and extension services
ØOther forms of assistance and supports as recommended by EXECOM that shall include but not limited to support services such as management services, pest and diseases control measures and institutional capacity/capability strengthening activities and feasibility study preparation.
I. Minimum Project Criteria
The project that will qualify for ACEF assistance, shall, at minimum:
1. Be consistent with the policies and priority thrusts under R.A. 8435 (as amended by
R.A. 9281) or the Agricultural and Fisheries Modernization Act (AFMA) vis-a-vis Goals 1 and 2 under the Medium- Term Philippine Development Plan (MTPDP) and/or the current plans and programs of the Department of Agriculture (DA);
2. Be complementary to, supportive and not duplicative of, the various and current funding assistance windows/programs of DA and other government institutions;
3.Exhibit market, technical, financial, socio-economic, and organizational viability and feasibility;
4.Enhance the competitiveness of target project beneficiaries or sector(s), especially the small farmers and/or fisherfolk;
5.Provide product/service competitiveness in the local and/or foreign markets in terms of product/service prices/fees and quality;
6.Promote upstream and downstream linkages with related and/or complementary agricultural activities;
7.Provide clear and verifiable proof sustainability of operations; and
8.Benefit to most, and not only selected, firms or groups within a sector.
J. FINANCING
1. Mode
a.The ACEF shall be extended as an interest-free loan to eligible proponents the proposed projects of which are income generating. The ACEF may also be extended as a collateral-free loan, except for those which the ExeCom may require to put up collaterals as loan security.
b.Private sector proponents shall be required to put up an equity to their projects the amount of which will depend on the SME category to which they belong, as follows:
SME Category
ACEF Loan
Proponent
Total Project Cost
Micro
80%
20%
100%
Small
70%
30%
100%
Medium
60%
40%
100%
Note:
Micro: not more than P 3,000,000.00
Small: P 3,000,000.00 to P 15,000,000.00
Medium: P 15,000,000.00 to P 100,000,000.00
The proponent’s equity may be in the form of capital outlay, labor, land for the project site, facilities, equipment, personnel salary and the like. Part of this equity can also be generated from other public or private sources, which they themselves shall have to identify and access.
c.The ACEF may also extended as:
i. an interest- and collateral-free loan for projects of small farmers and fisherfolk the funding requirement of which fall below the minimum amount of ACEF assistance provided for this Order; and
ii. a funding support to various public investments especially those which are programmed under, but unfounded by, the DA regular budget under the General Appropriations Act (GAA).
2. Amount of ACEF Assistance
The minimum amount of ACEF assistance is Five Hundred Thousand Pesos (P500,000.00). A maximum amount may be set by the ExeCom.
3. Loan Disbursement and Repayment Mechanism
Loan disbursements and repayments shall be governed by existing procedures implemented by this Department and shall form part of Memorandum of Agreement/Contract between the DA and project proponents.
Payable within six (6) years inclusive of one-year grace period.
4. Fund Allocation
a.Ninety percent (90%) of the total available ACEF shall be allocated to finance ExeCom-approved project proposals. Of this, an allocation which shall be determined by the ExeCom shall be set aside to finance those which are provided for in Section 1.J.1 of this Order.
b.The remaining ten percent (10%) shall be used for expenses covering administrative, operational, monitoring and evaluation concerns, to include the conduct of relevant studies and other developmental undertakings, and provision of technical assistance related to the proper and efficient utilization of, and access to, the fund as may be required and approved by the ExeCom.
Contact Information
William M. Valdez 0921-450-2415
Chief, AMAS
AMAS Staff
Carmen P. Tungol 0915-298-5850
Agrifair Focal Person
Carmencita S. Nogoy 0916-648-9393
SME & Export Dev’t Council Focal Person
Charito C. Libut 0918-414-9506
Investment Promotion Focal Person
Maricel L. Dullas 0918-441-0847
Brgy. Bagsakan/Bagsakan Center Focal Person
