April 17, 2019

REPUBLIC ACT NO. 11321

AN ACT INSTITUTING THE FARMERS AND FISHERFOLK ENTERPRISE

DEVELOPMENT PROGRAM OF THE DEPARTMENT OF AGRICULTURE

SECTION 1. Short Title . — This Act shall be known as the "Sagip

Saka Act."
SECTION 2. Declaration of Policy. — It is the declared policy of the
State to achieve sustainable modern agriculture and food security by helping
the agricultural and fishing communities to reach their full potential,
increasing farmers' and fishermen's incomes, and bridging gaps through
public-private partnerships, thereby improving their quality of life.
In pursuance of this policy, the State shall strengthen the farmers and
fisherfolk enterprise development program by establishing a comprehensive
and holistic approach in the formulation, coordination and implementation of
enterprise development initiatives, consolidating the roles of different
government agencies involved in farmers and fisherfolk enterprise
development, and intensifying the building of entrepreneurship culture
among farmers and fisherfolk.
SECTION 3. The Farmers and Fisherfolk Enterprise Development
Program. — There is hereby established the "Farmers and Fisherfolk
Enterprise Development Program," herein referred to as the Program, which
shall refer to the comprehensive set of objectives, targets, and holistic
approach in promoting the establishment of enterprises involving
agricultural and fishery products. It shall be integrated and be made
consistent with the Agriculture and Fisheries Modernization Plan, and the
Micro, Small, and Medium Enterprises Development Plan.
The Program shall make use of science-based technologies in the
identification and prioritization of agricultural and fishery products that will
be covered.
The forms of assistance to be provided under the Program shall
include:
(a) Improvement of production and productivity, including
agricultural extension services, skills development, provision of
production inputs, equipment, facilities, and infrastructure for
production and post-production activities;
(b) Improvement of producers' and enterprises' access to financing
in the form of credit grants and crop insurance;
(c) Provision of access to improved technologies through research
and development; and
(d) Provision of business support and development services,
particularly in the areas of access to markets, marketing, and
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 networking.
SECTION 4. Coverage of the Program. — The Program shall cover
the following areas:
(a) Agricultural and fisheries production, including processing of
fisheries and agri-based products and farm inputs;
(b) Acquisition of work animals, farm and fishery equipment and
machinery;
(c) Acquisition of seeds, fertilizer, poultry, livestock, feeds, and
other similar items;
(d) Procurement of agricultural and fisheries products for storage,
trading, processing, and distribution;
(e) Construction, acquisition, and repair of facilities for production,
processing, storage, transportation, communication, marketing,
and such other facilities in support of agriculture and fisheries;
(f) Working capital for agriculture and fisheries graduates to enable
them to engage in agriculture and fisheries related economic
activities;
(g) Agribusiness activities which support soil and water
conservation and ecology enhancing activities;
(h) Working capital for long gestating projects; and
(i) Credit guarantees on uncollateralized loans to farmers and
fisherfolk.
SECTION 5. Beneficiaries of the Program. — The possible proponent
groups or beneficiaries of the Program are the following: acEHCD

(a) Existing producer groups whose products are included in the

priority commodity value chains and have potential to increase
their marketable surplus;
(b) Farmer and fisherfolk which have potential to produce
marketable surplus and demonstrate willingness to voluntarily
adopt clustering with other groups and forge contracts or formal
marketing agreements with buyers or private intermediaries;
(c) Producer groups or cluster of growers that are either operational
and/or show a willingness to undergo capacity building on
enterprise development and management; and
(d) Micro, small, and medium scale processors, consolidators,
exporters, and other enterprises, who are willing to assist
producer groups in vertical clustering or joint business planning,
and forge contracts or formal marketing agreements with such
producer groups. Joint business planning and investments of the
producer groups and agro-processors will be supported if it will
result in increased engagement of the producer groups in value-
adding activities.
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 Farmers and fisherfolk must be members of any organization operating
in the priority commodity value chain for them to be eligible either as a
member of the proponent group or as supplier to the enterprise.
SECTION 6. Implementing Agencies and Partner Agencies. — The
Department of Agriculture (DA) shall be the implementing agency of the
Program. It shall tap the assistance, expertise and resources of the following
agencies, such as the Philippine Coconut Authority (PCA), National Dairy
Authority (NDA), Bureau of Soils and Water Management (BSWM), Philippine
Center for Post-Harvest Development and Mechanization, Bureau of Fisheries
and Aquatic Resources (BFAR), Agricultural Training Institute (ATI),
Agricultural Credit and Policy Council (ACPC), and the Bureau of Agricultural
Research (BAR).
The DA shall likewise collaborate with and secure the technical support
and assistance of other departments and their attached agencies and
corporations to support enterprise development in the priority commodity
value chain, such as the Department of Agrarian Reform (DAR), Department
of Environment and Natural Resources (DENR), Department of Science and
Technology (DOST), Department of Trade and Industry (DTI), and the
Department of the Interior and Local Government (DILG).
SECTION 7. Private Sector Partnership . — Partnerships or alliances
between farmers and fisherfolk and the private sector may be formed to
improve market access of producer groups.
The following criteria shall be considered in the selection of private
sector partners:
(a) Commitment to enter into marketing contract or a buy-back
agreement with the producers' group;
(b) Willingness to undertake technology transfer on the provided
goods and/or services;
(c) Financial and organizational capability to undertake the
proposed enterprise; and
(d) Established and actual experience in undertaking or
implementing the proposed enterprise.
Private sector partners may also provide or donate equipment,
machineries, and other forms of assistance to farmers and fisherfolk
engaging in enterprise development.
The DA shall issue the guidelines and the qualification requirements in
recognizing private sector partners of the Program.
SECTION 8. Creation of the Farmers and Fisherfolk Enterprise
Development Council. — To oversee the proper implementation of the
Program, the Farmers and Fisherfolk Enterprise Development Council is
hereby created. It shall be composed of: (a) the Secretary of the DA or his
duly authorized representative who is at least an Undersecretary, who shall
be the Chair; (b) a representative of the DTI, who shall likewise at least be an
Undersecretary; (c) a representative of the DILG; (d) a representative of the
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 Department of Finance (DOF); (e) a representative of the Cooperative
Development Authority (CDA); (f) a representative of a national organization
of farmers cooperatives or associations; (g) a representative of a national
organization of fisherfolk cooperatives or associations; and (h) two (2)
representatives from the agriculture, food, restaurant and business sectors.
The DA shall tap the resources under the management of its attached
agencies and commodity development programs and require counterpart
funding from partner and local government units (LGUs) and farmers and
fisherfolk organizations and enterprises in the form of cash, land, building,
labor, or machineries and equipment.
SECTION 9. Local Councils for Farmers and Fisherfolk Enterprise
Development. — The Agriculture and Fishery Councils (AFCs) of the
Philippine Council for Agriculture and Fisheries (PCAF) shall provide the
mechanisms for private sector participation in the development processes at
the regional, provincial city/municipal levels.
SECTION 10. Farmers and Fisherfolk Enterprise Development
Information System. — The DA, through the Agribusiness and Marketing
Assistance Service, shall maintain a Farmers and Fisherfolk Enterprise
Development Information System to assist the government in formulating
plans and programs on enterprise development, and to enable producer
groups, the private sector, the LGUs, and potential donors to respond to the
needs of the local and world markets and in generating resources for further
enterprise development. The information system shall contain a list of
possible and implemented programs and projects, a registry of agricultural
and fisheries enterprises, and a roster of private companies engaged in
these enterprises or have expressed interest in participating in the Program,
and other information that may be identified by the Department or by the
Council.
SECTION 11. Direct Purchase by National and Local Government
Agencies. — To promote and support farmers and fisherfolk enterprise
development, national and local government agencies shall directly
purchase agricultural and fishery products from accredited farmers and
fisherfolk cooperatives and enterprises: Provided, That said agricultural and
fishery products are necessary in the performance of their respective
mandates.
For purposes of this Act, the procurement by national and local
government agencies of said agricultural and fishery products shall be
exempt from the application of the bidding process prescribed under
relevant government procurement laws: Provided, That said agencies shall
undergo a negotiated procurement under the applicable guidelines of the
Government Procurement Policy Board.
SECTION 12. Tax Incentives and Exemptions . — The provisions of
any general or special law to the contrary notwithstanding:
(a) Gifts and donations of real and personal properties shall be
exempt from donor's tax;SDHTEC

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 (b) The LGUs shall exempt structures, buildings, and warehouses
utilized for the storage of farm inputs and outputs from real
property tax: Provided, That the assessed value of the property
does not exceed Three million pesos (P3,000,000.00);
(c) The Land Bank of the Philippines shall provide preferential rates
and special window to accredited farmers and fisherfolk
enterprises; and
(d) Exemptions from income tax may be provided for income
arising from the operations of the enterprise: Provided, That the
farmer and the fisherfolk cooperatives and enterprises shall
register as barangay micro-business enterprises pursuant to
Republic Act No. 9178, otherwise known as the "Barangay Micro-
Business Enterprises (BMBEs) Act of 2002."
SECTION 13. Implementing Rules and Regulations . — Within sixty
(60) days from the date of effectivity of this Act, the DA, in consultation with
the DTI and the DOF, shall formulate the rules and regulations for the proper
implementation of this Act.
SECTION 14. Separability Clause. — If any provision of this Act is
declared invalid or unconstitutional, the other provisions not affected by
such declaration shall remain in full force and effect.
SECTION 15. Repealing Clause . — All laws, executive and
administrative orders, rules and regulations inconsistent with the foregoing
provisions are hereby repealed or modified accordingly.
SECTION 16. Effectivity. — This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in a newspaper of general
circulation.
Approved: April 17, 2019.

Published in the Manila Bulletin on May 30, 2019.

Published in the Official Gazette, Vol. 115, No. 25, p. 6067 on June 24,
2019.

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