AN ACT PROVIDING FOR THE DEVELOPMENT AND PROMOTION OF ORGANIC AGRICULTURE IN THE PHILIPPINES AND FOR OTHER PURPOSES

Case Overview and Summary

Summary of the Organic Agriculture Act of 2010

Declaration of Policy (Section 2):
- Promote, propagate, develop and implement organic agriculture in the Philippines
- Enrich soil fertility, increase farm productivity, reduce pollution and environmental destruction
- Protect health of farmers, consumers, and the public
- Save on imported farm inputs
- Undertake a comprehensive program for organic agriculture
- Recognize and support the central role of farmers, indigenous people, and grassroots stakeholders

Definition of Terms (Section 3):
- Defines key terms like "organic", "organic agriculture", "organic production system", "conversion period", "biodegradable wastes", "ecologically-sound", "commercialization", "certification", "accreditation", "first/second/third party certification", and "organic food establishment"

Coverage (Section 4):
- Covers policy formulation, regulation, registration, accreditation, certification, and labeling on organic agriculture
- Covers research, development, and extension of organic agriculture
- Covers promotion and establishment of facilities for organic fertilizers, pesticides, herbicides, and other inputs
- Covers implementation of organic agriculture programs, projects, and activities, with focus on farmers and stakeholders

National Organic Agricultural Program (Section 5):
- Establishes a comprehensive organic agricultural program
- Includes promotion and commercialization of organic farming practices
- Includes continuing research and upgrading of production and processing methods
- Includes capacity building of farmers and education of consumers
- Includes extension of assistance to LGUs, POs, NGOs, and other stakeholders
- Includes documentation and evaluation of the program

National Organic Agricultural Board (NOAB) (Sections 6-9):
- Creates the NOAB as the policy-making body for the National Organic Agricultural Program
- Outlines the composition of the NOAB, including representatives from various government agencies, small farmers, NGOs, and the private sector
- Specifies the organization and rules of procedure for the NOAB
- Outlines the powers and functions of the NOAB, including policy formulation, program oversight, financing, monitoring and evaluation, international recognition, and rule-making

Bureau of Agriculture and Fisheries Product Standards (BAFPS) (Sections 10-12):
- Strengthens and empowers the BAFPS to serve as the national technical and administrative secretariat of the NOAB (Section 10)
- Outlines the functions, duties, and responsibilities of the BAFPS in implementing organic agriculture programs and projects (Section 11)
- Requires the BAFPS to submit a work plan to the NOAB, including plans for grassroots implementation, cooperation with LGUs, POs, and NGOs, and short/medium/long-term targets (Section 12)

Organic Agriculture and Protection of the Environment (Section 13):
- Requires the NOAB to devise and implement ways to produce organic fertilizers and other farm inputs from industrial waste and community garbage
- Requires the BAFPS to conduct studies and advise local governments on collection and disposal of garbage for organic fertilizer production

Local Executive Committees (Section 14):
- Requires provincial governors and municipal mayors to form technical committees to implement the National Organic Agricultural Program within their jurisdictions
- Requires LGUs shifting to organic agriculture to ensure adequate consultation and planning for vulnerable industries
- Requires governors to monitor implementation and compliance within their jurisdictions

Accreditation of Organic Certifying Body (Section 15):
- Designates and authorizes the BAFPS to grant official accreditation to organic certifying bodies
- Requires at least one accredited organic certifying body in Luzon, Visayas, and Mindanao, or one body with satellite offices in each region

Registration of Organic Food and Organic Input Producers (Section 16):
- Requires all organic food and input establishments to register with the BAFPS within 90 days of the Act's enactment
- Outlines the information required for registration, including establishment details, products, certifying body, and materials used

Labeling of Organic Produce (Section 17):
- Requires the label of organic produce to contain the name, logo or seal of the organic certifying body and the accreditation number issued by the BAFPS
- Allows only third-party certified products to be labeled as organically produced

Retailing of Organic Produce (Section 18):
- Requires retail establishments selling organic produce to designate a separate area to display organic produce and avoid mixing with non-organic produce

Availability of Trading Post for Organic Inputs (Section 19):
- Requires local chief executives to establish at least one trading post for organic inputs for every LGU in their jurisdiction, as far as practicable

Research, Development and Extension (RDE) (Sections 20-23):
- Requires the Bureau of Agricultural Research (BAR) to coordinate with other agencies and SUCs to develop and implement a unified and integrated organic agriculture RDE plan and programs (Section 20)
- Requires the creation of an Organic Agriculture RDE Network composed of research and educational institutions, LGUs, NGOs, and organic fertilizer associations (Section 21)
- Requires the establishment of national, regional, and provincial organic R&D and extension centers as part of existing RDE centers (Section 22)
- Requires the integration of organic agriculture concerns in school curricula at all levels (Section 23)

Incentives (Section 24):
- Provides incentives for the production and propagation of organic farm inputs, including:
- Exemption from duties on importation of agricultural equipment and machinery (Section 24a)
- Identification of local tax incentives by LGUs (Section 24b)
- Preferential rates and special window by the Land Bank of the Philippines (Section 24c)
- Subsidies for certification fees and other support services (Section 24d)
- Zero-rated value-added tax (VAT) on transactions involving organic products (Section 24e)
- Income tax holiday and exemption for seven years for organic food and input producers (Section 24f)
- Incentives are available only to micro, small, and medium enterprises as defined by the Magna Carta for Micro, Small and Medium Enterprises

Appropriations (Section 25):
- Appropriates Php50,000,000 for the initial year of implementation
- Authorizes the NOAB to solicit and accept assistance or grants from individuals and entities, subject to accounting and auditing rules

Penal Provision (Section 26):
- Imposes penalties of imprisonment of 1-6 months, a fine of up to Php50,000, or both, for willfully and deliberately:
- Obstructing the development or propagation of organic agriculture or organic inputs
- Refusing without just cause to extend support and assistance required under the Act
- Mislabeling or falsely claiming a product is organic
- Imposes additional dismissal from office for government employees

Implementing Rules and Regulations (Section 27):
- Requires the NOAB to adopt implementing rules and regulations within 90 days of the Act's effectivity and submit them to the Congressional Oversight Committee on Agricultural and Fisheries Modernization (COCAFM) for review and approval
- Requires consultation with the Department of Finance regarding tax incentives

Annual Report and Congressional Oversight (Sections 28-29):
- Requires the NOAB to render an annual report to Congress on the program's accomplishments (Section 28)
- Designates the COCAFM as the congressional oversight committee to review and approve implementing rules, monitor implementation, review performance, and perform other necessary functions (Section 29)

Separability Clause (Section 30):
- Provides that if any provision is declared invalid or unconstitutional, the other provisions shall remain in full force and effect

Repealing Clause (Section 31):
- Repeals or modifies all laws, decrees, orders, proclamations, rules, and regulations contrary to or inconsistent with the Act

Effectivity (Section 32):
- Provides that the Act shall take effect 15 days after its publication in at least two newspapers of general circulation or in the Official Gazette, whichever comes first