Post-harvest Facilities Support Act of 2025

4. TWENTIETH CONGRESS OF THE ) First Regular Session 25 JUl -7 P1:33 SENATE S. No. - Introduced by Senator FRANCIS N. PANGILINAN AN ACT PROVIDING POST-HARVEST FACILITIES TO RICE FARMERS EXPLANATORY NOTE Article XIII, Section 5 of the 1987 Constitution provides that "[the State shall recognize the right of farmers, farmworkers, and landowners, as well as cooperatives, and other independent farmers' organizations to participate in the planning, organization, and management of the program, and shall provide support to agriculture through appropriate technology and research, and adequate financial, production, marketing, and other support services." Republic Act No. 10601 or the "Agriculture and Fisheries Mechanization (AFMech) Law" supports the required support or interventions by "mandating the development, promotion, and adoption of modern, appropriate, cost-effective, and environmentally safe agricultural and fisheries machinery and equipment. This is to enhance farm productivity and efficiency, achieve food security and safety, and increase farmers' and fisherfolks' income." Despite efforts to enhance mechanization, however, the lack of postharvest facilities is one of the challenges that our government is trying to address since it continues to significantly impact the Philippine rice industry. A study cited that

among the key constraints in the development of postharvest technology include the lack of infrastructure support and lack of government policy and implementation. 1 Recent data from the Japan International Cooperation Agency (JICA) and the Philippine Center for Postharvest Development and Mechanization (PhilMech) in 2025 indicated a high post-harvest loss rate of 14.5% in rice production.? Said losses occur at various stages, including harvesting, piling, threshing, drying, and milling, cumulatively resulting in substantial reduction in the country's rice supply. The Rice Tariffication Law (Republic Act No. 11203) as amended by Republic Act No. 12078, aimed to address said postharvest losses by allocating 50% of the Rice Competitiveness Enhancement Fund (RCEF) to the PhilMech for the provision of modern farm equipment. It was reported that between 2019 and 2024, the PhilMech, through the RCEF, delivered 29,599 units of farming equipment. These equipment include machines for land preparation, harvesting and milling, and was distributed to 6,385 farmers' cooperatives and associations (FCAs) and 368 local government units (LGUs). PhilMech's assessment highlights that this mechanization effort has been effective in reducing post-harvest losses. Specifically, it has helped reduce losses by 31,841 metric tons annually, translating to an estimated savings of P541.3 million and boosting food security.3 'Andales, Silvestre C. and Gragasin, Engr. Michael. "Priorities and Constraints of Postharvest Technology in the Philippines. Available at https://www.jircas.go.jp/sites/default/files/publication/intlsymp/intisymp-79- 16.pdf#:~:text=Some%200%20the%20maior%20constraints%20in%20the, and%20lack%200%20government%20policy%2 Dand%20implementation, (Accessed on June 30, 2025). 2 [Agriculture] Final Report on "Data Collection Survey for Post-Harvest Modernization of Rice in the Republic of the Philippines" has been Published on June 2025. Available published. 9, at https://www.iica.go.jp/english/overseas/philippine/information/press/2025/1570174 59671.html#:~:text=At%20the%20same %20time%2C%20the%20postharvest%20loss,at%2014.5%25%2C%20indicating%20significant%20room%20for%20improve ment.&text=Given%20the%20above%20context%2C%20the%20Philippine%20Government, for%20irrigation%2C%20mechan ization%2C%20and%20post%2Dharvest%2C%20among %20others. (Accessed on June 29, 2025). 3 Philippines sees gains in rice sector through unified efforts, Published on January 24, 2025. Available at https://www.da.gov.ph/ph-sees-gains-in-rice-sector-through-unified= sfforts/#:~:text=Additionally%2C%20data%20show%20that%20between.production%20costs%20dropped%20by%20P1. (Accessed on June 29, 2025)-

. ' In 2024, the drive for modernization has increased the mechanization level of rice farms to 2.77 horsepower per hectare, which is up from 2.68 horsepower per hectare in 2019. Combine harvesters and four-wheel tractors accounted for 52% and 29%, respectively, of the increase in farm power. Despite these advancements, however, the rice sector continues to face challenges such as typhoons, climate events like El Niño and La Niña, and high input prices. Crucial interventions such as the establishment of postharvest facilities should therefore be prioritized to reduce post-harvest production losses and strengthen our rice industry. This bill proposes that the government directly constructs and provides essential postharvest facilities, such as warehouses, modern rice mills, and efficient transport facilities. These facilities would then be sold at cost to accredited farmer cooperatives, empowering them with the interventions/infrastructure needed to improve their productivity and competitiveness. In view of the foregoing, the approval of this bill is earnestly sought. FRANCIS N. PANGILINAN Senator * Ibid.

TWENTIETH CONGRESS OF THE ) First Regular SessilLPINES , First Regular Session 25 JUL -7 P1:33 SENATE S. No. 222 Introduced by Senator FRANCIS N. PANGILINAN AN ACT PROVIDING POST-HARVEST FACILITIES TO RICE FARMERS Be enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Title.- This Act shall be known as the "Post-Harvest Facilities

Support Act of 2025."

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

agricultural and rural development. Specifically, the State aims to raise farm incomes to a level high enough to allow farmers to satisfy their material needs and enhance their self-esteem. It is also the policy of the State to encourage and strengthen non- government organizations, such as farmer organizations, cooperatives, and enterprises.

Sec. 3. Post-Harvest Facilities.- The Department of Public Works and

10 Highways, in consultation with the Department of Agriculture, the Department of 11 Agrarian Reform, and farmer cooperatives shall construct warehouses and rice mills 12 in every rice producing municipality and city in the Philippines: Provided, That in the 13 initial phase of the program, every district with at least one rice-producing 14 municipality shall be the beneficiary of at least one warehouse and rice mill. Additionally, the Department of Trade and Industry, in consultation with the Department of Agriculture, the Department of Agrarian Reform, and farmer 17 cooperatives, shall provide the equipment and machinery required to operate these

1 warehouses and rice mills such as Flatbed Dryers and Threshers, as well as the 2 necessary transport facilities.

Sec. 4. Acquisition of Farmer Cooperatives.- The warehouses and rice mills,

4 including the equipment and machinery required to operate them, shall be sold at 5 cost to accredited farmer cooperatives which will be given twenty five (25) years to 6 amortize the facilities.

Sec. 5. Appropriations.- The amount necessary for the effective

8 implementation of this Act shall be charged against the current appropriations for Department of Agriculture. Hereafter, such amount as may be necessary for its 10 continued implementation shall be included in the annual General Appropriations 11 Act: Provided, that funding support for agencies implementing the Program shall be 12 included in the necessary appropriations for this Act.

Sec. 6. Implementing Rules and Regulations.- Within thirty (30) days from the

14 effectivity of this Act, the Department of Public Works and Highways, the Department of Agriculture, the Department of Agrarian Reform, and the Department 16 of Trade and Industry shall jointly promulgate the implementing rules and 17 regulations necessary for the full implementation of this Act.

Sec. 7. Stakeholder Consultations.- The aforementioned implementing

19 agencies of this act shall conduct beneficiaries and project stakeholders consultation 20 from the planning to evaluation stages of the post-harvest facility project. The formation of the local project's Technical Working Group (TWG) that shall lead the consultation, updating and evaluation of the project is hereby created.

Sec. 8. Separability Clause.- If any provision of this Act is declared invalid or

unconstitutional, the other provisions not affected by such declaration shall remain in full force and effect.

Sec. 9. Repealing Clause- All laws, executive orders, administrative orders,

and rules and regulations inconsistent with this Act are hereby repealed or amended accordingly.

Sec. 10. Effectivity Clause.- This Act shall take effect fifteen (15) days after its

complete publication in the Official Gazette or in two (2) newspapers of general circulation. Approved,