Sagip Saka Act

Case Overview and Summary

Summary of Republic Act No. 11321 (Sagip Saka Act)

• Declaration of Policy (Section 2)
- Achieve sustainable modern agriculture and food security
- Help agricultural and fishing communities reach their full potential
- Increase farmers' and fishermen's incomes
- Bridge gaps through public-private partnerships
- Improve quality of life of farmers and fisherfolk
- Strengthen farmers and fisherfolk enterprise development program
- Establish a comprehensive and holistic approach
- Consolidate roles of government agencies
- Intensify building of entrepreneurship culture

• The Farmers and Fisherfolk Enterprise Development Program (Section 3)
- Comprehensive set of objectives, targets, and holistic approach
- Promote establishment of enterprises involving agricultural and fishery products
- Integrated and consistent with Agriculture and Fisheries Modernization Plan and MSME Development Plan
- Use science-based technologies for identification and prioritization of products
- Forms of assistance:
    - Improvement of production and productivity (Section 3a)
    - Improvement of access to financing (Section 3b)
    - Provision of access to improved technologies (Section 3c)
    - Provision of business support and development services (Section 3d)

• Coverage of the Program (Section 4)
- Agricultural and fisheries production, including processing (Section 4a)
- Acquisition of work animals, farm and fishery equipment and machinery (Section 4b)
- Acquisition of seeds, fertilizer, poultry, livestock, feeds, and similar items (Section 4c)
- Procurement of agricultural and fisheries products for storage, trading, processing, and distribution (Section 4d)
- Construction, acquisition, and repair of facilities for production, processing, storage, transportation, marketing, and support (Section 4e)
- Working capital for agriculture and fisheries graduates (Section 4f)
- Agribusiness activities supporting soil and water conservation and ecology (Section 4g)
- Working capital for long gestating projects (Section 4h)
- Credit guarantees on uncollateralized loans to farmers and fisherfolk (Section 4i)

• Beneficiaries of the Program (Section 5)
- Existing producer groups with potential to increase marketable surplus (Section 5a)
- Farmers and fisherfolk with potential to produce marketable surplus and willingness to adopt clustering and formal marketing agreements (Section 5b)
- Producer groups or clusters willing to undergo capacity building on enterprise development and management (Section 5c)
- Micro, small, and medium scale processors, consolidators, exporters, and other enterprises willing to assist producer groups and forge formal marketing agreements (Section 5d)
- Farmers and fisherfolk must be members of organizations operating in the priority commodity value chain (Section 5)

• Implementing Agencies and Partner Agencies (Section 6)
- Department of Agriculture (DA) as the implementing agency
- Assistance from PCA, NDA, BSWM, PHilMech, BFAR, ATI, ACPC, and BAR
- Collaboration with DAR, DENR, DOST, DTI, and DILG

• Private Sector Partnership (Section 7)
- Partnerships or alliances between farmers/fisherfolk and private sector
- Criteria for selection of private sector partners:
    - Commitment to enter into marketing contract or buy-back agreement (Section 7a)
    - Willingness to undertake technology transfer (Section 7b)
    - Financial and organizational capability (Section 7c)
    - Established and actual experience (Section 7d)
- Private sector partners may provide equipment, machineries, and other assistance (Section 7)
- DA to issue guidelines and qualification requirements for recognizing private sector partners (Section 7)

• Farmers and Fisherfolk Enterprise Development Council (Section 8)
- Oversee proper implementation of the Program
- Composed of representatives from DA (Chair), DTI, DILG, DOF, CDA, national organizations of farmers and fisherfolk cooperatives/associations, and agriculture, food, restaurant and business sectors
- DA to tap resources from its attached agencies and commodity development programs
- Require counterpart funding from partner agencies, LGUs, and farmers/fisherfolk organizations and enterprises

• Local Councils for Farmers and Fisherfolk Enterprise Development (Section 9)
- Agriculture and Fishery Councils (AFCs) of the Philippine Council for Agriculture and Fisheries (PCAF) to provide mechanisms for private sector participation at regional, provincial, city/municipal levels

• Farmers and Fisherfolk Enterprise Development Information System (Section 10)
- DA, through the Agribusiness and Marketing Assistance Service, to maintain an information system
- Assist in formulating plans and programs on enterprise development
- Enable producer groups, private sector, LGUs, and potential donors to respond to market needs and generate resources
- Contain list of programs and projects, registry of agricultural and fisheries enterprises, roster of private companies, and other information

• Direct Purchase by National and Local Government Agencies (Section 11)
- National and local government agencies shall directly purchase agricultural and fishery products from accredited farmers and fisherfolk cooperatives and enterprises
- Exempt from bidding process prescribed under relevant government procurement laws
- Undergo negotiated procurement under applicable guidelines of the Government Procurement Policy Board

• Tax Incentives and Exemptions (Section 12)
- Gifts and donations of real and personal properties exempt from donor's tax (Section 12a)
- LGUs to exempt structures, buildings, and warehouses for storage of farm inputs and outputs from real property tax if assessed value does not exceed Three million pesos (P3,000,000.00) (Section 12b)
- Land Bank of the Philippines to provide preferential rates and special window to accredited farmers and fisherfolk enterprises (Section 12c)
- Exemptions from income tax for income arising from operations of the enterprise, provided the farmer and fisherfolk cooperatives and enterprises register as barangay micro-business enterprises pursuant to Republic Act No. 9178 (Section 12d)

• Implementing Rules and Regulations (Section 13)
- DA, in consultation with DTI and DOF, to formulate rules and regulations for proper implementation within sixty (60) days from the date of effectivity

• Separability Clause (Section 14)
- If any provision is declared invalid or unconstitutional, other provisions not affected shall remain in full force and effect

• Repealing Clause (Section 15)
- All laws, executive and administrative orders, rules and regulations inconsistent with the provisions are hereby repealed or modified accordingly

• Effectivity (Section 16)
- The Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation