Reorganizing Palayan ng Bayan to Pagkain ng Bayan

Case Overview and Summary

Summary of Executive Order No. 620

Reorganization of Palayan ng Bayan to Pagkain ng Bayan
- Palayan ng Bayan is reorganized and renamed to Pagkain ng Bayan to expand its scope to include production and primary processing of all foodstuffs. (Section 1)
- All assets, liabilities, organization, and personnel of Palayan ng Bayan are transferred to Pagkain ng Bayan. (Section 2)

Participation of City Mayors
- City Mayors are allowed to participate in the Pagkain ng Bayan program, similar to Provincial Governors. (Section 3)

Loans and Financing
- Maximum loan amount per hectare and for other activities will be determined by the National Advisory Council based on project requirements. (Section 4)
- Crop and operational loans shall not exceed one year, while investment and capital loans may be granted for more than one year with approval from the National Advisory Council. (Section 5)
- Interest rates and charges on loans will be determined by the National Advisory Council, subject to existing rates authorized by the Central Bank. (Section 6)
- The Minister of Finance is authorized to issue and sell interest-bearing bonds, debentures, or certificates of indebtedness up to P200 million to fund the expanded Pagkain ng Bayan Program. (Section 7)

Loan Repayment and Revenue Withholding
- In case of loan default by a province/city, the Minister of Finance may withhold a portion of the revenues due to the province/city and apply it as payment to Pagkain ng Bayan, without prejudice to Pagkain ng Bayan's rights to enforce the personal guarantee of the Provincial Governor/City Mayor. (Section 8)

Use of Private Lands
- The National Advisory Council may authorize the use and cultivation of idle private lands by Provincial Governors/City Mayors for Pagkain ng Bayan projects through voluntary lease contracts with private owners, subject to restrictions outlined by the Council. (Section 9)

Restrictions on Leasing Pagkain ng Bayan Areas
- Leasing of Pagkain ng Bayan areas or a portion thereof by the provincial/city governments to private sectors is not allowed, and any such lease contract or agreement entered into by the Provincial Governor/City Mayor shall be null and void ab initio. (Section 10)

Repealing Clause
- All provisions of laws, presidential decrees, executive orders, letters of instructions, rules and regulations inconsistent with this Executive Order are hereby repealed and/or modified accordingly. (Section 11)