National Fertilizer and Pesticide Subsidy for Farmers Act

TWENTIETH CONGRESS OF THE 25 JUL -3 P3:41 REPUBLIC OF THE PHILIPPINES First Regular Session SENATE S. B. No. Introduced by Senator Rodante D. Marcoleta AN ACT INSTITUTIONALIZING THE FERTILIZER AND PESTICIDE SUBSIDY PROGRAM UNDER THE DEPARTMENT OF AGRICULTURE, AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE Fertilizers and pesticides are indispensable components of food production in the Philippines. They also contribute significantly to production cost. In 2022, for example, fertilizers constitute 20.5% of the average palay production cost per hectare, while pesticides constitute around 4.6%.' While palay production cost has since fallen?, our reliance on imported fertilizer makes our food production particularly vulnerable to global shocks. Compounded with the problem of dwindling farmlands and shrinking number of farmers and farm workers, there is indeed a critical need to implement both long-term and immediate reforms to our agricultural sector. 3 In addition to exploring systemic solutions such as shifting to local organic fertilizers and curbing fertilizer importation, there should likewise be a mechanism to ease production costs that would provide immediate relief to farmers such as through 1 Philippine Statistics Authority. "2022 Costs and Returns of Palay Production". (October 2023). Accessed from: https://psa.gov.ph/system/files/main- publication/Full% 20Report%2C%202022%20SCR%20%20Palay%20Production_signed.pdf 2 Arcalas, Jasper Emmanuel. "Palay Production Cost Falls to Three-Year Low". The Philippine Star. (02 December 2024). Accessed from: https://www.philstar.com/business/2024/12/02/2404323/palay-production-cost-falls-three-year-low 3 Hufana, Chloe Mari A. "Hunger Knocks on Door as Philippine Farmers Vanish". Business World. (10 April 2025). Accessed from: https://www.bworldonline.com/top-stories/2025/04/10/665067/hunger-knocks-on-door-as-philippine-farmers-vanish/?amp

the institutionalization of a subsidy program for fertilizers and pesticides. This meaningful intervention will allow our farmers to recuperate from their losses, make farming an attractive option for new workers, and help mitigate any inflationary effect from farming input price movements. In view of the foregoing, the immediate approval of this measure is earnestly sought. RODANTE D. MARCOLETA

TWENTIETH CONGRESS OF THE JUL -3 P3:41 REPUBLIC OF THE PHILIPPINES First Regular Session REC. 1 SENATE S. B. No. Introduced by Senator Rodante D. Marcoleta AN ACT INSTITUTIONALIZING THE FERTILIZER AND PESTICIDE SUBSIDY PROGRAM UNDER THE DEPARTMENT OF AGRICULTURE, AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "National Fertilizer and

2 Pesticide Subsidy for Farmers Act."

Sec. 2. National Fertilizer and Pesticide Subsidy Program (NFPSP). - The

4 Department of Agriculture (DA) and the Fertilizer and Pesticide Authority (FPA), in coordination with the Local Government Agriculture Office, shall implement a National Fertilizer and Pesticide Subsidy Program for the benefit of the qualified farmers.

Sec. 3. Forms of Subsidies. - The DA shall provide fertilizer and pesticide

subsidies to qualified farmer beneficiaries. The DA and the FPA shall determine the amount of the subsidy vouchers depending on the current situation and prevailing market prices. a. Fertilizer Subsidy - Subsidy voucher of no lower than Six Thousand Pesos (Php6,000.000) per hectare annually; b. Pesticide Subsidy - Subsidy voucher of no lower than Two Thousand Pesos (Php2,000.000) per hectare annually.

Sec. 4. Eligible Beneficiaries. - The eligible beneficiaries must meet the

following criteria:

a. Must be a Filipino citizen of legal age; and, b. Must be listed in the Registry System for Basic Sectors in Agriculture (RSBSA) of the DA. Qualified farmers registered under the RSBSA shall be automatically included in the list of eligible beneficiaries of the NFPSP.

Sec. 5. Appropriations. - The amount needed to implement this Act shall be

included in the annual general appropriations of the DA.

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

g effectivity of this act, the DA and FPA shall, in consultation with the relevant 10 stakeholders, promulgate the necessary rules and regulations to effectively implement the provisions of this Act. The non-promulgation of the rules and regulations provided under this section 13 shall not prevent the immediate implementation of this Act upon effectivity.

Sec. 7. Mandatory Submission of Report to Congress. - The DA shall submit to

the Congress of the Philippines, through the respective Chairpersons of the Committee 16 on Agriculture, a program report detailing the implementation every fiscal year. The program report should include the following: a. Total number of farmer beneficiaries including relevant information, such as but not limited to, age, sex, location, size of arable land; b. Overall Production Performance of the Farmer Beneficiaries; and, c. Assessment of the impact of the program to the National Food Security Plan.

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

23 invalid or unconstitutional, the remaining parts not affected shall remain in full force and effect.

Sec. 9. Repealing Clause. - All laws, presidential decrees, executive orders,

letters of instructions, administrative orders, proclamations or administrative

1 regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 10. 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,