Strengthening Coconut Farmers Participation in the Utilization of the Cfitf

Senate Office of the Sortretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) 25 OCT 20 P2:09 First Regular Session SENATE RECEIVED BY: Senate Bill No. 145*7 Introduced by Senator Erwin T. Tulfo AN ACT STRENGTHENING COCONUT FARMERS' PARTICIPATION IN THE UTILIZATION OF THE COCONUT FARMERS AND INDUSTRY TRUST FUND, AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 11524, OTHERWISE KNOWN AS THE "COCONUT FARMERS AND INDUSTRY TRUST FUND ACT," AND FOR OTHER PURPOSES EXPLANATORY NOTE The coconut industry remains one of the pillars of Philippine agriculture. With 69 out of 82 provinces producing coconut and a total production area of 3.62 million hectares, the sector provides livelihood to an estimated 2.5 million farmers. Yet, despite the passage of Republic Act No. 11524 or the "Coconut Farmers and Industry Trust Fund Act" in 2021, the industry continues to lag behind other major agricultural industries in productivity, value addition, and farmer welfare. Beyond recurring challenges such as typhoons, pests, and market volatility, structural bottlenecks in the implementation of the law, including slow fund releases, bureaucratic fragmentation, limited replanting coverage, and minimal farmer consultation, have hindered the full realization of the law's intent: to deliver long-overdue justice and prosperity to the coconut farmers who were once deprived of their rightful share of the coconut levy funds.

Many coconut farmers lament that they remain voiceless in the management and utilization of the Coconut Farmers and Industry Trust to be Fund. Without effective participation, programs tend disconnected from ground realities, which perpetuate inefficiencies and erode trust in government institutions. To address these gaps, this bill proposes targeted amendments to Republic Act No. 11524 to make the law more responsive to the needs of coconut farmers. It seeks to expand the objectives of the Coconut Farmers and Industry Development Plan (CFIDP) to explicitly include hybrid seed propagation, replanting, modernization, and the simplification and digitalization of procedures for fund release and program implementation. The bill also promotes product development, research, market access, and infrastructure support. More importantly, this bill seeks to strengthen farmer representation through the creation of the Coconut Farmers Advisory Board (COCOFAB), an independent consultative body composed of representatives from recognized farmers' organizations. The COCOFAB shall review and recommend program priorities, monitor the implementation of Trust Fund-financed services, and provide policy feedback to the Philippine Coconut Authority (PCA) Board and the Trust Fund Management Committee (TFMC). Through these reforms, the bill aims to restore the confidence of coconut farmers in government by guaranteeing that the Trust Fund is managed not only efficiently but also equitably and transparently, with farmers meaningfully represented in decisions that affect their future. In view of the foregoing, the immediate passage of the bill is earnestly sought. ERWIN T. TULFO

senate Office of the Sorcretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 OCT 20 P2:09 First Regular Session RECEIVED BY: SENATE Senate Bill No. 1457 Introduced by Senator Erwin T. Tulfo AN ACT STRENGTHENING COCONUT FARMERS' PARTICIPATION IN THE OTILIZATION OF THE COCONUT FARMERS AND INDUSTRY TRUST FUND, AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 11524, OTHERWISE KNOWN AS THE "COCONUT FARMERS AND INDUSTRY TRUST FUND ACT," AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 4 of Republic Act No. 11524 is hereby

2 amended to read as follows: "Section 4. Preparation of the Coconut Farmers and Industry Development Plan. - xxx. In the formulation of the Plan, the PCA shall be guided by the following objectives: (a) Increased productivity and income of coconut farmers;

(b) Poverty alleviation, education, and social equity; and (c) Rehabilitation and modernization of the coconut industry towards farm productivity. (a) INCREASE THE PRODUCTIVITY, PROFITABILITY, AND RESILIENCE OF COCONUT FARMS THROUGH THE REHABILITATION, REPLANTING, AND EXPANSION OF COCONUT AREAS, ESTABLISHMENT OF SEED FARMS AND COMMUNAL NURSERIES, AND THE MASS PROPAGATION AND DISTRIBUTION OF HYBRID AND HIGH-YIELDING SEEDLINGS; (b) ENSURE THAT THE BENEFITS OF THE COCONUT FARMERS AND INDUSTRY TRUST FUND ARE TIMELY, TRANSPARENT, AND DIRECTLY ACCESSIBLE TO COCONUT FARMERS THROUGH SIMPLIFIED AND DIGITALIZED PROCEDURES FOR FUND RELEASE AND PROGRAM IMPLEMENTATION; PRODUCT (c) ENCOURAGE RESEARCH, INVESTMENT DEVELOPMENT, AND UTILIZING COCONUT AND ITS BY- PRODUCTS, TO PROMOTE JOB CREATION, AND MARKET COMPETITIVENESS; PURSUE INCLUSIVE GROWTH AND SOCIAL (d) EQUITY BY ALIGNING ALL PROGRAMS WITH POVERTY REDUCTION, SOCIAL PROTECTION, AND CAPACITY-BUILDING OBJECTIVES;

(e) PROMOTE THE MODERNIZATION, SUSTAINABILITY AND CLIMATE RESILIENCE OF THE COCONUT SECTOR THROUGH METHODS CONSISTENT WITH ENVIRONMENTAL STEWARDSHIP; AND (f) IMPROVE ACCESS TO MARKETS, CREDIT, AND INFRASTRUCTURE SUPPORT TO ENHANCE FARMERS' INCOME AND LIVELIHOOD SECURITY "xxx."

SEC. 2. There is hereby inserted a new Section 5-A in Republic

Act No. 11524 to read as follows: "SECTION 5-A. COCONUT FARMERS ADVISORY BOARD. - THERE IS HEREBY CREATED A COCONUT FARMERS ADVISORY BOARD (COCOFAB) COMPOSED OF (5) MEMBERS REPRESENTING REGISTERED COCONUT FARMERS' FEDERATIONS, COOPERATIVES, AND/OR PEOPLE'S ORGANIZATIONS. THE MEMBERS OF THE COCOFAB SHALL BE APPOINTED BY THE PCA BOARD FROM AMONG NOMINEES SUBMITTED BY RECOGNIZED FARMERS' ORGANIZATIONS. THEY SHALL ELECT FROM AMONG THEMSELVES THE CHAIRMAN. THE THE COCOFAB SHALL HAVE FOLLOWING FUNCTIONS: (a) REVIEW AND RECOMMEND TO THE PCA BOARD THE ANNUAL PRIORITIES AND PROPOSED BUDGET ALLOCATIONS UNDER

THE COCONUT FARMERS AND INDUSTRY DEVELOPMENT PLAN (CFIDP); AND EVALUATE THE (b) MONITOR IMPLEMENTATION OF TRUST FUND- FINANCED PROGRAMS; AND SUBMIT POLICY AND PROGRAM (c) RECOMMENDATIONS TO THE PCA BOARD AND RELEVANT AGENCIES TO ENSURE THAT TRUST FUND PROGRAMS ARE ALIGNED WITH THE NEEDS AND PRIORITIES OF COCONUT FARMERS. THE COCOFAB SHALL BE CONSULTED PRIOR TO THE APPROVAL OF ANY INVESTMENT, DISBURSEMENT, OR UTILIZATION OF THE TRUST FUND. FOR THIS PURPOSE, THE TRUST FUND MANAGEMENT COMMITTEE SHALL FURNISH THE COCOFAB WITH ALL RELEVANT DOCUMENTS AND PROPOSALS AT LEAST FIFTEEN (15) DAYS PRIOR TO APPROVAL, AND SHALL DULY CONSIDER ITS COMMENTS AND RECOMMENDATIONS IN THE FINAL DECISION."

SEC. 3. Section 10 of Republic Act No. 11524 is hereby

amended to read as follows: "Section 10. Creation of a Trust Fund Management Committee. - There is hereby created a Trust Fund Management Committee, which shall be comprised of authorized representatives of the DOF, DBM, and the Department of Justice (DOJ.

The Trust Fund Management Committee shall be responsible for setting the Investment Strategy of the Trust Fund, which includes the following, among others: (a) Setting of investment priorities; (b) Setting of investment themes; (c) Evaluation of assets to determine portfolio size; (d) Setting of asset allocation; (e) Setting of policies with respect to particular asset types; (f) Guidelines for portfolio turnover; (g) Guidelines for Trust Fund Management Expenses; (h) Set the annual allocation of the Trust Fund available for disbursement which shall not be less than Five Billion pesos (P5,000,000,000.00) per year but which can be more if the funds shall permit; (i) Approval of the financial requirements of DDEs in relation to its function set forth under this Act, including its annual budget for operations, of management, and privatization/disposition Coconut Levy Assets and/or Funds transferred and entrusted in its care; and (i) Other guidelines as may be necessary to fulfill its mandate under this Act. THE TRUST FUND MANAGEMENT COMMITTEE SHALL, PRIOR TO THE APPROVAL OF ANY INVESTMENT STRATEGY OR PLACEMENT, CONSULT THE PCA BOARD AND THE COCOFAB TO ENSURE THAT THE INVESTMENT STRATEGY IS RESPONSIVE TO THE PRIORITIES AND WELFARE OF COCONUT FARMERS, AND CONSISTENT WITH THE COCONUT FARMERS AND INDUSTRY DEVELOPMENT PLAN.

The BTr shall act as the Trust Fund Management Committee Secretariat and shall maintain records and accounts of all investments, receipts, disbursements, and other transactions relating to the management, administration, and utilization of the Trust Fund: Provided, That these records and accounts shall be maintained in accordance with existing accounting and auditing laws, rules and regulations, and shall be audited by the COA. For the above purposes, an amount of one-half of one percent of the Trust Fund Principal shall be utilized as Trust Fund Management Expense, which shall be sourced from the Trust Fund. The Trust Fund Management Expense shall answer for all expenses directly incurred in the management of the Trust Fund, including, but not limited to, transaction fees, redemption fees, placement fees, investment fees, transaction costs, and other operating expenses. ALL INVESTMENT REPORTS, FUND RELEASES, AND PROJECT PERFORMANCE UPDATES RELATING TO THE TRUST FUND SHALL BE MADE PUBLICLY AVAILABLE THROUGH AN OFFICIAL WEBSITE TO BE MAINTAINED BY THE PCA, WITH PERIODIC SUMMARIES SUBMITTED TO CONGRESS."

SEC. 4. Implementing Rules and Regulations. - Within sixty (60)

days from the effectivity of this Act, the PCA, in coordination with the concerned agencies, shall issue the necessary rules and regulations for its effective implementation.

SEC. 5. Separability Clause. - Should any provision or part of

this Act be declared unconstitutional or invalid, the other provisions and parts hereof, insofar as they are separable from the invalid ones, shall remain in full force and effect.

SEC. 6. Repealing Clause. - All laws, decrees, orders, issuances,

2 rules, and regulations or parts thereof, which are inconsistent with this 3 Act are hereby repealed or modified accordingly.

SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,