AN ACT FURTHER EXTENDING THE PERIOD OF IMPLEMENTATION OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND (ACEF)

Case Overview and Summary

Summary of Republic Act No. 10848

Extension of the Agricultural Competitiveness Enhancement Fund (ACEF)
- The ACEF, created under Republic Act No. 8178, as amended, is further extended until the year 2022. (Section 1)
- After 2022, the collection of duties from the minimum access volume (MAV) mechanism and the setting aside of the amount collected for the ACEF shall terminate. (Section 1)
- Any remaining balance(s) at the date of expiration shall continue to be used for the purpose for which it was collected and set aside. (Section 1)

Composition and Purpose of the ACEF
- The ACEF consists of all duties collected from the importation of agricultural products under the MAV mechanism, including unused balances and collections from repayments from loan beneficiaries, including interests, if any. (Section 1)
- The ACEF shall be automatically credited to Special Account 183 in the General Fund of the National Treasury. (Section 1)
- Fund releases shall not be subject to any ceiling by the Department of Budget and Management (DBM). (Section 1)
- The ACEF shall be set aside and released for:
    a. Providing credit to farmers and fisherfolk, their cooperatives and associations, and micro and small-scale enterprises for the acquisition and establishment of production, postharvest, and processing machineries, equipment and facilities, farm inputs and improvement. (Section 1)
    b. Research and development on agricultural and fishery products of state universities and colleges. (Section 1)
    c. A comprehensive and attractive grant-in-aid program for agriculture, forestry, fisheries, and veterinary medicine education. (Section 1)

Allocation of the ACEF
- 80% of the ACEF shall be in the form of credit with reasonable interest, not exceeding ₱5,000,000.00 per project loan, for the acquisition and establishment of agri-based production and post-production, and processing machineries, equipment and facilities, to be extended to Filipino farmers and fisherfolk associations and cooperatives, and micro and small-scale enterprises, and not to exceed ₱1,000,000.00 to individual farmers and fishermen. (Section 1)
- Loan beneficiaries shall provide a counterpart fund or equity of not less than 10% of the total project cost. (Section 1)
- The Land Bank of the Philippines shall manage the credit facility and determine the eligibility requirements, loan security or collateral, and reasonable interest for the loan. (Section 1)
- 10% of the ACEF shall be used as grants for research and development of agricultural and fishery products, and the commercialization of such, including the upgrading of research facilities, of qualified state universities and colleges, not exceeding ₱5,000,000.00 per project. (Section 1)
- 10% of the ACEF shall be used for the funding of a comprehensive and attractive grant-in-aid program for agriculture, forestry, fisheries, and veterinary medicine education, to be implemented by the Commission on Higher Education. (Section 1)

ACEF Executive Committee
- An ACEF Executive Committee is created, composed of:
    a. The Secretary of Agriculture, as chair. (Section 1)
    b. The President of the Land Bank of the Philippines. (Section 1)
    c. The Chairperson of the Commission on Higher Education. (Section 1)
    d. A representative of farmers associations and cooperatives. (Section 1)
    e. A representative of fisherfolk associations and cooperatives. (Section 1)
- The Committee shall promulgate the policies and guidelines necessary for the planning, administration, coordination and monitoring of the utilization of the ACEF. (Section 1)
- The Congressional Oversight Committee on Agricultural and Fisheries Modernization (COCAFM) shall conduct a periodic review of the use of the ACEF. (Section 1)

Accounting and Reporting Requirements
- Within 120 days from the approval of this Act, the following reports shall be submitted to the ACEF Executive Committee and the COCAFM:
    a. Bureau of Customs – duties collected from the MAV mechanism for the period 2009-2015. (Section 1)
    b. Bureau of Treasury – funds remitted and credited to ACEF (Special Account 183). (Section 1)
    c. Department of Budget and Management – ACEF funds released to the Department of Agriculture for the period 2009-2015. (Section 1)
- Within 100 days upon the effectivity of this Act, the ACEF Executive Committee shall conduct a complete accounting and inventory of the ACEF loan portfolio. (Section 1)
- Within the same period, the Commission on Audit (COA) shall conduct a full audit and report the status of ACEF grants and loans extended for the period 2000 to 2011. (Section 1)
- The COA report and the loan portfolio report shall be transmitted by the ACEF Executive Committee to the Office of the Solicitor General (OSG), which shall exhaust all legal remedies to exact collection of all ACEF past due accounts and liquidation of all grants. (Section 1)
- The OSG is allowed to charge reasonable fees for its legal services and collection efforts from the actual collections of outstanding ACEF loans. (Section 1)
- The remaining amount collected shall be remitted to the ACEF and shall be utilized based on the provisions of this Act. (Section 1)
- The OSG shall submit, every six (6) months, a collection performance report to the ACEF Executive Committee and the COCAFM. (Section 1)

Separability Clause (Section 2)
Repealing Clause (Section 3)
Effectivity Clause (Section 4)