Local Harvest Support Act of 2026

THE PHILIP RECEIVED TWENTIETH CONGRESS OF THE DANPR 2 1 2026 REPUBLIC OF THE PHILIPPINES TIME: 32 AM ES First Regular Session BY: BILLS & INDEX SENA651 S. No. — Introduced by Senator Loren Legarda AN ACT MANDATING LOCAL FOOD PROCUREMENT AND ESTABLISHING A NATIONAL RESCUE-BUY PROGRAM FOR FARMERS AND FISHERFOLK, AND FOR OTHER PURPOSES EXPLANATORY NOTE Despite being an agricultural nation, many Filipino farmers and fisherfolk remain among the poorest sectors in the country. A primary reason is the lack of stable and direct market access, which compels producers to rely on intermediaries and sell at significantly reduced farmgate prices. Recent developments in March and April 2026 highlight a worsening structural vulnerability in the agricultural sector. In Ilocos Norte, mango growers have been forced to let produce go to waste as transport costs surged by up to 200%, consuming a substantial portion of their income. In Bulan, Sorsogon, a convergence of oversupply and elevated input costs led to the large-scale disposal of tamban, as market prices fell below the cost of preservation. In Benguet, vegetable farmers face a severe "scissors effect," where production costs of P18-P20 per kilogram far exceed farmgate prices that have dropped to as low as P3 per kilogram. These conditions illustrate a recurring pattern: when supply chains are disrupted by external shocks, including fuel price volatility and logistical constraints, the burden is disproportionately borne by producers. In the absence of reliable institutional demand, farmers are exposed to extreme price fluctuations, leading to income instability, food waste, and inefficiencies in the domestic food system. This bill seeks to address these structural gaps by institutionalizing a "Local First" procurement policy across government. It mandates procuring entities, including State Universities and Colleges (SUCs), the Department of Education (DepEd), public hospitals and health facilities, and Local Government Units (LGUs), to source a defined

portion of their food requirements directly from local farmers and fisherfolk. By doing so, the State establishes a stable and predictable source of demand, reducing reliance on intermediaries and strengthening rural incomes. The measure builds on existing mechanisms, including those under Republic Act No. 11321, otherwise known as the "Sagip Saka Act," and relevant procurement guidelines, by integrating direct procurement into a broader, system-wide framework with clear targets, accountability mechanisms, and expanded coverage. It also introduces preferential criteria for food concessionaires operating within government premises, encouraging alignment of private procurement practices with national agricultural priorities. The bill further institutionalizes a National Rescue-Buy Program, empowering the Department of Agriculture (DA), in coordination with LGUs, to intervene during periods of market disruption, including oversupply, calamities, or sudden price collapses. Through direct procurement at sustainable prices and structured redistribution mechanisms, the program seeks to prevent food waste, stabilize farmgate prices, and provide immediate economic relief to affected producers. Recognizing the varied logistical capacities across regions, the measure adopts a tiered procurement framework, with higher sourcing thresholds for entities located near agricultural production hubs and calibrated requirements for highly urbanized or geographically distant areas. This is supported by the establishment of a National Agricultural Proximity Map, as well as monitoring and compliance systems to ensure effective and context-sensitive implementation. The projected impact of the measure is substantial. By redirecting a portion of government food expenditure toward local producers, the State can stimulate rural economic activity, enhance the quality and freshness of food provided in public programs, and contribute to a more resilient and self-reliant food system. In view of the foregoing, the passage of this measure is earnestly sought. LOREN LEGARDA

OF THE RECEIVED TWENTIETH CONGRESS OF THE OFFICE OF THIS PIN REPUBLIC OF THE PHILIPPINES TIME: First Regular Session BY: - SENATE BILLS & INDEX 2051 S. No. _ Introduced by Senator Loren Legarda AN ACT MANDATING LOCAL FOOD PROCUREMENT AND ESTABLISHING A NATIONAL RESCUE-BUY PROGRAM FOR FARMERS AND FISHERFOLK, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled

Section 1. This Act shall be known as the "Local Harvest Support Act of 2026."

Sec. 2. Declaration of Policy. - It is the policy of the State to promote food

security, reduce rural poverty, and empower local farmers and fisherfolk by ensuring fair, stable, and direct market access for their produce. To this end, the State shall mandate that government-funded food programs, institutional feeding, and relief operations prioritize the purchase of local agricultural produce directly from local 7 farmers and fisherfolk. The State shall further strengthen and operationalize Sagip Saka Act by establishing clear procurement targets, improving market linkages, and enabling more efficient and inclusive participation of small producers in government supply chains. The State shall promote the reduction of food loss and waste across the supply chain, recognizing its contribution to climate change mitigation and resource efficiency. Consistent with the objectives of food security and agricultural resilience, the State shall also institutionalize emergency response mechanisms, including rescue- buy operations, to prevent food loss, stabilize farmgate prices, and ensure the timely redistribution of agricultural produce to communities in need.

Sec. 3. Definition of Terms. — For purposes of this Act, the term:

(a) Local Agricultural Produce refers to the yield of the soil, such as corn, rice, wheat, rye, hay, coconuts, tobacco, sugar cane, fruits, vegetables,

and garden produce, as well as livestock and livestock products, poultry and poultry products, and dairy products; (b) Procuring Entity refers to any branch, constitutional commission or office, agency, department, bureau, office, or instrumentality of the Government, including state universities and colleges, government- owned and/or -controlled corporations, government financial institutions, and local government units procuring Goods, Consulting Services, and Infrastructure Projects; (c) Proximate Local Procurement refers to the principle of "subsidiarity" where decisions and procurement actions are made at the lowest level of government possible, prioritizing the acquisition of goods and services within the jurisdiction of the Local Government Unit to ensure maximum local economic benefit; and (d) Negotiated Procurement - Sagip Saka (NP-SS) refers to a method of procurement where the Procuring Entity directly negotiates a contract with local farmers and fisherfolk for the purchase of agricultural and fishery products when the same is for the purpose of providing food for daily food needs and institutional programs, and where such products are to be used for school-based feeding, hospital dietary requirements, or relief operations. (e) Rescue-Buy Operations refers to the emergency direct procurement of perishable or non-perishable agricultural produce by the Department of Agriculture (DA) or relevant LGUs during periods of market glut, calamities, or sudden price collapses that directly threaten the livelihoods of local farmers and fisherfolk.

Sec. 4. Mandatory Local Procurement - All Procuring Entities shall source the

applicable minimum percentage of their annual food requirements for institutional programs and daily food needs directly from local farmers and fisherfolk, in accordance with the applicable sourcing thresholds under this Act. (a) An eighty percent (80%) minimum sourcing requirement shall apply to Procuring Entities located in rural areas or those classified as proximate to local agricultural producers and hubs. (b) A sixty percent (60%) minimum sourcing requirement shall apply to Procuring Entities located in Highly Urbanized Areas (HUAs) or those geographically distant from major agricultural production centers, as certified by the DA.

Sec. 5. Scope of Application. - The mandatory local procurement requirement

under Section 4 of this Act shall apply to all government-funded food procurement for institutional programs, daily operational food requirements, and public feeding or relief

1 activities, including, but not limited to: (a) the daily food requirements of all government agencies; (b) the Department of Education (DepEd) School-Based Feeding Program (SBFP); (c) the dietary and nutritional requirements of government-retained hospitals facilities; (d) relief operations, feeding programs, and social welfare interventions conducted by Local Government Units (LGUs); and (e) such other government-funded food procurement activities, programs, or institutional requirements as may be identified in the implementing rules and regulations.

Sec. 6. Procurement Modality. - Procurement of agricultural produce by

Procuring Entities under this Act shall, where undertaken directly from local farmers 14 and fisherfolk, be conducted in accordance with Section 11 of Republic Act No. 11321, otherwise known as the "Sagip Saka Act,"and its implementing rules and regulations. In all other cases, including procurement involving intermediaries, retailers, distributors, or private concessionaires, the applicable provisions of Republic Act No. 12009, otherwise known as the "New Government Procurement Act," and its implementing rules and regulations shall apply. Procuring Entities shall, where practicable, prioritize agricultural produce sourced from climate-resilient, sustainable, or diversified farming systems in order to strengthen adaptive capacity and reduce vulnerability to climate-related shocks.

Sec. 7. Sourcing by Food Service Providers. - In cases where government

agencies, including State Universities and Colleges (SUCs), public hospitals, and other similar entities, procure food services through private food service providers or concessionaires, the procuring entity shall adopt, as a preferential criterion in the competitive selection process, the percentage of food requirements proposed to be sourced from accredited local farmers and fisherfolk. Any local procurement undertaken by the selected food service provider or concessionaire may be considered as part of the procuring entity's sourcing performance, subject to verification and such guidelines as may be issued under this Act. Provided, That the procuring entity shall remain primarily responsible for compliance with the mandatory sourcing requirements under Section 4 of this Act.

Sec. 8. Logistical Hardship Waiver. - Procuring Entities classified as

"Urbanized/Distant" under Section 9 of this Act may apply for a temporary reduction of the applicable minimum sourcing requirement under Section 4 from sixty percent (60%) to not less than forty percent (40%), subject to the issuance by the Department of Agriculture (DA) of a Certificate of Logistical Hardship.

The grant of such waiver shall be based on substantial evidence of: (a) inadequate or disrupted local supply chains; (b) absence or insufficiency of cold chain, storage, or consolidation facilities; or (c) other significant logistical barriers affecting the timely, efficient, and cost- effective procurement of local agricultural produce. The waiver shall be granted only for such period as may be determined by the DA, subject to periodic review and renewal under guidelines to be issued for this purpose. Provided, That the Procuring Entity shall exert best efforts to progressively comply with the applicable sourcing requirement under Section 4 of this Act; Provided, further, That all waivers granted under this Section shall be subject to monitoring, reporting, and audit in accordance with this Act and other applicable 15 laws, rules, and regulations.

Sec. 9. Agricultural Proximity Mapping. - The DA, in coordination with the

Department of the Interior and Local Government (DILG) and the Philippine Statistics Authority (PSA), shall establish and maintain a National Agricultural Proximity Map, to be updated periodically as necessary. Such a map shall classify Procuring Entities as either "Proximate" or "Urbanized/Distant," which classification shall serve as the basis for determining the applicable sourcing requirement under Section 4 of this Act and for the application of any waiver under Section 8 of this Act.

Sec. 10. Consolidated Sourcing and Market Aggregation. - The DA shall

facilitate the establishment of Regional Food Hubs and other accredited aggregation mechanisms to support the bulk sourcing, consolidation, storage, and distribution of local agricultural produce for Procuring Entities. Procuring Entities classified as "Urbanized/Distant" under Section 9 of this Act may comply with the applicable sourcing requirement under this Act by entering into consolidated sourcing agreements with such hubs, accredited cooperatives, farmer organizations, or other DA-accredited aggregators. Procurement from retailers, distributors, or private entities shall be considered compliant with this Act only where such entities are able to demonstrate that the agricultural produce sourced is directly procured from local farmers and fisherfolk, in accordance with traceability and certification guidelines to be issued by the DA. The DA shall establish standards for accreditation, traceability, and reporting to ensure that all consolidated sourcing arrangements preserve the direct economic benefit to local producers, minimize unnecessary intermediaries, and support domestic

1 agricultural production.

Sec. 11. Compliance and Audit Framework. - The Government Procurement

Policy Board (GPPB), in coordination with the Commission on Audit (COA), shall develop standardized reporting, verification, and auditing templates for Procuring 5 Entities, taking into account the differentiated sourcing requirements under this Act. Compliance with the applicable sourcing thresholds under Section 4 shall be 7 reflected in the Annual Procurement Plan (APP), procurement records, and such other compliance documents as may be prescribed under this Act and its implementing rules 9 and regulations. Provided, That compliance with the prescribed sourcing requirements shall be subject to post-audit and verification by the COA in accordance with existing auditing rules and regulations.

Sec. 12. Price Preferences. - Procuring Entities shall purchase agricultural

produce at a price higher than the prevailing farmgate price but within the range of the prevailing retail price, as monitored by the DA. In cases of market glut accompanied by a substantial decline in farmgate prices, the applicable price range may be based on the prevailing prices during the previous regular harvest season, as may be determined through negotiations between the Procuring Entity and the farmers or fisherfolk, subject to guidelines to be issued by the DA.

Sec. 13. Emergency Rescue-Buy. - In times of crisis, including but not limited

to agricultural oversupply, market glut, natural calamities, or drastic farmgate price collapses, the DA, in coordination with Local Government Units (LGUs), is hereby authorized to directly conduct Rescue-Buy Operations from affected farmers and fisherfolk, in accordance with Republic Act No. 11321 and its implementing rules and regulations.

Sec. 14. Priority Utilization and Distribution of Rescued Produce. - To ensure

the timely use of rescued agricultural produce, prevent spoilage, and maximize benefits to affected communities, the following rules on utilization and distribution shall apply: (a) Localized Utilization. - To prevent spoilage and ensure immediate benefit to affected communities, produce acquired through Rescue-Buy Operations shall, as far as practicable, be prioritized for immediate distribution within the locality where such produce was sourced, including through:

1. Barangay-level distribution to vulnerable households; 2. Community-based feeding programs; and 3. Local relief and nutrition interventions of the LGU. (b) Reallocation. — Only when local absorption capacity is insufficient shall such produce be transported or reallocated to other areas or national-level programs. (c) Secondary Utilization. - Subject to subsection (b), rescued produce may also be allocated to: 1. National Food Authority buffer stocks; 2. Direct distribution to disaster-stricken areas through the Department of Social Welfare and Development; 3. Government-led feeding and nutrition programs; 4. The Katuwang sa Diwa at Gawa para sa Masaganang Ani at Mataas na Kita (KADIWA) initiative; and/or 5. Other food-based institutional programs of any government agency.

Sec. 15. Non-Politicization of Distribution. - Rescue-Buy Operations and the

distribution of agricultural produce under this Act shall be strictly non-partisan and non-political. (i) The presence of elected or appointed public officials during distribution activities shall be limited to official and supervisory functions only; (ii) No speeches, campaign-style messaging, or political endorsements shall be conducted during such activities; (iii) The use of names, images, logos, or any identifying marks of public officials in packaging, distribution materials, tarpaulins, or related media is strictly prohibited; and (iv) Any violation of this provision shall be subject to administrative and other applicable penalties under existing laws, rules, and regulations.

Sec. 16. Partnerships, Handling Standards, and Disposition of Produce. - To

ensure efficient implementation of Rescue-Buy Operations, safeguard food safety, and promote proper utilization of agricultural produce, the following provisions on partnerships, handling, and disposition shall apply: (a) Partnerships. - The DA and LGUs may accredit, partner with, and support non-government organizations (NGOs), civil society organizations (CSOs), cooperatives, and private sector entities engaged in food recovery, redistribution, or rescue-buy initiatives.

The government may source from, co-implement with, or provide logistical and financial support to such entities, subject to applicable auditing and procurement laws, rules, and regulations. Accredited partners may assist in aggregation, transport, storage, and distribution of rescued produce. The DA shall establish guidelines for accreditation, coordination, and monitoring of such partners to ensure transparency, accountability, and food safety. (b) Handling and Disposition of Produce. - Produce determined to be unfit for human consumption shall not be distributed for food use and shall instead be redirected, where practicable, to appropriate secondary uses such as animal feed, composting, or other value-recovery processes. Where such utilization is not feasible, disposal shall be undertaken in accordance with Republic Act No. 9003 and other applicable public health and environmental regulations. The DA shall issue guidelines to ensure proper classification, handling, and disposition of such produce.

Sec. 17. Funding and Compliance Treatment. - Funding for Rescue-Buy

Operations shall be sourced from existing appropriations, including the Quick Response Fund (QRF), price stabilization funds, or such other sources as may be provided by law. Produce acquired through Rescue-Buy Operations and distributed to government institutions may be counted toward compliance with the applicable sourcing requirement under Section 4 of this Act, subject to verification, reporting, and traceability requirements to be prescribed in the implementing rules and regulations.

Sec. 18. Incentives for Compliance and Enhanced Local Sourcing. - To

encourage full and timely compliance with the provisions of this Act, the following incentives shall be made available to Procuring Entities and accredited partners: (a) Performance Recognition. (i) The DA, in coordination with the DILG and other concerned agencies, shall establish a recognition and incentive system for high-performing Procuring Entities, including awards, certifications, and public reporting of compliance performance; (ii) The DILG shall promulgate the necessary guidelines to operationalize this incentive-based indicator, including criteria for assessment, documentation requirements, point allocation, and verification mechanisms, ensuring that implementation remains voluntary, non-discriminatory, and consistent with the principles

of local autonomy and inclusivity. (b) Integration with the Seal of Good Local Governance (SGLG). (i) The DILG shall integrate the establishment and maintenance of local agricultural procurement systems as a non-obligatory criterion under the SGLG or its successor assessment framework. (ii) Compliance with this indicator shall not be mandatory, and non- compliance shall neither disqualify nor demerit an LGU from obtaining or retaining the Seal. (iii) However, LGUs that voluntarily meet or exceed the procurement targets established in Section 4 of this Act shall be awarded additional incentive points, merits, or other equivalent recognitions and scoring credits in the design and implementation of the SGLG or its successor assessment framework. (b) Private Sector Participation. - Private suppliers, concessionaires, cooperatives, and accredited aggregators that demonstrate substantial and consistent sourcing from local farmers and fisherfolk may be granted preferential consideration in government procurement processes, subject to applicable laws and regulations.

Sec. 19. Implementing Rules and Regulations (IRR). - The DA, in coordination

with the DepEd, Department of Health (DOH), Commission on Higher Education (CHED), Department of the Interior and Local Government (DILG), and the GPPB, shall promulgate the implementing rules and regulations for this Act within sixty (60) days from its effectivity. The IRR shall include provisions to ensure the effective monitoring and evaluation of this Act, including the collection and reporting of data disaggregated by sex, sector, and geographic location, for the purpose of assessing the inclusiveness, reach, and impact of procurement and Rescue-Buy Operations.

Sec. 20. Separability Clause. — If any provision or part of this Act is held invalid

or unconstitutional, the remaining provisions or parts unaffected shall remain in full force and effect.

Sec. 21. Repealing Clause. - All laws, executive orders, presidential decrees or

issuances, letters of instruction, administrative orders, rules, and regulations contrary to or inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 22. Effectivity Clause. - This Act shall take effect fifteen (15) days after

its publication in the Official Gazette or in a newspaper of general circulation. Approved,