Agri-food Terminal and Trading Centers Act

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 JUL -2 P4:11 SENATE 5. No. _ Introduced by Senator IV Ejercito MANDATING THE ESTABLISHMENT OF AGRI-FOOD TERMINALS AND TRADING CENTERS IN EVERY PROVINCE PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES EXPLANATORY NOTE Our 1987 Philippine Constitution specifically 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. According to the data from the Philippine Statistics Authority (PSA), the value of production in agriculture and fisheries dropped by 2.2% to P1.75 trillion in 2024. This was recorded to be the lowest in eight years.! As a result of this, 1.4 million farmers suffered P57.78 billion in losses in 2024. As the Philippines is largely an agricultural country, it is important for the government to give more support to the sector and to our farmers and fisherfolks. In this proposed measure, we endeavor to develop a stronger and more effective agricultural supply chain in the country, by creating agri-food terminals in https://www.philstar.com/business/2025/01/29/2417560/agriculture-output-dwindles-8-year-low-2024

every province. These food-terminals will serve as a central point for farmers and fisherfolks to deliver their goods, enabling transactions with wholesale buyers as well as individual consumers, and guaranteeing that products are offered at competitive, if not lower prices. Currently, the Department of Agriculture has a Kadiwa ng Pangulo program which is a key component to address the lack of food terminals in the country. The program aims to empower local farmers and fisherfolks, including local MSMEs establishing direct market connections, enabling them to sell their produce directly to consumers. As of 2024, there are 447 KADIWA pop-up stores and on-wheels sites fully operating across various regions. The program is estimated to benefit more than 10,000 farmers nationwide. The proposed bill will complement and institutionalize this effort, scaling the government's market linkage programs beyond temporary or pop-up settings. The establishment of Agri-Food Terminals and Trading Centers in every province wili cut the cost of goods and agricultural products that will be accessible to our consumers, and will in turn increase the income of our farmers. This bill ensures that the benefits of Kadiwa and other similar initiatives become sustainabie and inciusive. In view of the foregoing, the approval of this bill is earnestly sought. 100= JV EJERCITO

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 JUL -2 P4:11 SENATE REcamade S. No._ Introduced by Senator JV Ejercito MANDATING THE ESTABLISHMENT OF AGRI-FOOD TERMINALS AND TRADING CENTERS IN EVERY PROVINCE PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES 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 "Agri-Food Terminal and

Trading Centers Act."

Sec. 2. Declaration of Principles and State Policies, - It is hereby declared the

policy of the State to give aid to farmers by providing venue to promote and market their produce and giving them access to buyers who can offer competitive prices. 6 Towards this end, a comprehensive program for the creation of a nationwide system 7 of agricultural food terminals and trading centers is hereby established. The goal of these centers is to provide an avenue where farmers and livestock raisers can directly sell their products to institutional buyers and gain higher profit; moreover, this endeavor for a higher mobility for locally produced agricultural products to the whole country for cheaper cost of transportation.

Sec. 3. Definition of Terms. - As used in this Act:

(a) Agri-Food Terminals - a centralized facility in a province where agricultural products are assembled, stored, processed, and distributed. (b) Trading Center - a facility that enables direct transactions between producers and buyers, including institutional markets, wholesalers, and retailers.

(c) Smallholder Farmers and Fisherfolk - agricultural workers with limited access to resources, land, and capital.

Sec. 4. Establishment of Agri-Food Terminals and Trading Centers - The

Department of Agriculture (DA), in coordination with the Department of Public Works 5 and Highways (DPWH), Department of the Interior and Local Government (DILG), and 6 concerned LGUs, shall establish and manage an Agri-Food Terminals and Trading 7 Center in every province within five (5) years from the effectivity of this Act. Cities and municipalities are hereby encouraged to establish their own Agri-Food Terminals and Trading Centers. Agri-Food Terminal and Trading Centers shall have the following standards for their creation and operation: a. It shall be mandatory for the province to setup at least one Agri-food Terminal and Trading Center adjacent to a train stations located within the jurisdiction of the province concerned. b. In provinces where there is no train station, Agri-food Terminal and Trading Center shall be set up strategically near ports, bus terminals or any transport hub within the jurisdiction of the province concerned. c. For the first two (2) years from the date of operation, terminals/centers shall concentrate on the top three (3) agricultural products of the province. The list shall be expanded to five after this period. d. Each center shall be equipped with a warehousing center, cold storage and any similar facilities necessary to accommodate and store agriculture product.

Sec. 5. Work Plan. - In line with this Act, the Department of Agriculture shall

develop the following: a. A plan of bringing the program down to the grassroots, utilizing available personnel and facilities on the local level and those of LGUs; b. A pattern of cooperation and mutual assistance with LGUs, Peoples Organizations and Non-Governmental Organizations, which will maximize people empowerment and participatory approaches to program formulation, implementation and monitoring; and

c. A schedule of short-term, medium-term and long-term targets on research and development, marketing, trade promotion/initiatives, capacity building, among others.

Sec. 6. Funding. - The amount of Twenty-Five billion (Php 25,000,000,000) is

5 hereby appropriated for the initial year of implementation of this act, thereafter, the 6 amount of Ten Billion pesos (Php 10,000,000,000) shall be included in the budget of 7 the Department for implementation and continued expansion of this program. In 8 addition, the establishment and operation of terminals and centers will be made with the available participatory funding from the national government with adequate equity from the Local Government Units.

Sec. 9. Implementing Rules and Regulations. - Within thirty (30) days from the

effectivity of this Act, the Secretary of Agriculture and the Secretary of Interior and Local Government, in consultation with appropriate government agencies and other 14 stakeholders, shall promulgate the necessary rules and regulations to implement this 15 Act. The implementing rules and regulations shall include a template to guide the cities 16 and municipalities in the establishment of their own Agri-food Terminals and Trading Centers.

Sec. 10. Separability Clause. - If any part or provision of this Act shall be declared

unconstitutional or invalid, the other provisions hereof which are not affected thereby shall remain in full force and effect.

Sec. 11. Repealing Clause. - All laws, decrees, executive orders, memorandum

orders, memorandum circulars, administrative orders, ordinances or parts thereof which are inconsistent with the provisions of this Act are hereby deemed repealed or modified accordingly.

Sec. 12. Effectivity. - This Act shall take effect fifteen (15) days after its

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