AFMA: What You Need To Know

Based on the Report and Recommendations of the Congressional Commission on Agricultural Modernization, modern agriculture is perceived as dynamic, highly productive and competitive. Republic Act 8435 or the Agriculture and Fisheries Modernization Act of 1997, simply known as AFMA, seek to modernize the Philippine agriculture for the country to compete in the global market.

To fully understand the dynamics of AFMA, it is best to learn its features. This primer intends to put in plain words the salient features of the said law.

Q: What is AFMA?

A: Republic Act 8435 is also known as AFMA or Agriculture and Fisheries Modernization Act. It is an act defining measures to modernize the countrys agriculture and fisheries sectors to make them competitive in the market. The law took effect February 9, 1998.

Q: Why is there a need for AFMA?

A: There is a need to modernize the Philippine agriculture to improve the living conditions of the majority of the farmers and increase their productivity amidst the growing needs of the markets (local and abroad). Modernizing agriculture is the way by which farmers can realize better income.

Q: What do the farmers and fisherfolks expect to happen through this law?

A: AFMA hopes to improve the quality of life, not only of the farmers and fisherfolks, but every Filipino. Specifically, it intends to achieve the following:

- Transform the agriculture and fisheries sectors to technology-based, advanced and competitive industry;

- Ensure that the small farmers and fisherfolks have equal access to assets, resources and services;

- Guarantee food security;

- Encourage farmer and fisherfolk groups to bond together for more bargaining power;

- Strengthen peoples organizations, cooperatives and nongovernment organizations by enhancing their participation in decision-making;

- Pursue an aggressive market-driven approach to make the products more competitive in the market;

- Stimulate further processing of agricultural products and make it more marketable; and

- Implement policies that will invite more investors to establish business in the country.

Q: What are the principles behind the implementation of this law?

A: The following principles will be used in implementing AFMA:

- Poverty alleviation and social equity means that the poorer sectors should have equal access to resources, opportunities and support services.

- Food security means that the supply of food should be available, adequate and affordable.

- Rational use of resources means that allotting funds for agriculture and fisheries sectors shall be done in a reasonable, efficient and effective way.

- Global competitiveness means that the agricultural products should be able to compete with the other products of both domestic and international markets.

- Sustainable development means that any modernization programs to be implemented should always consider the environmental impact.

- People empowerment guarantees participation of all farmers and fisherfolks involved in making policies and decisions affecting them.

- Protection from unfair competition means that farmers and fisher folks are given due access to credit and resources to strengthen their cooperative-based marketing system.

Q: How does AFMA intend to improve the quality of life of all sectors?

A: The Department of Agriculture leads the implementation of RA 8435 by soliciting the cooperation of concerned agencies. Other departments are involved depending on the issues concerned. For instance, on the issue of infrastructure, the Department of Public Works and Highways is mobilized to assist.

Q: What needs to be done to implement the law?

A: There are various activities supporting the production and marketing aspects of agriculture and fisheries development. Foremost is the identification of Strategic Agricultural and Fisheries Development Zones (SAFDZ).

Q: Specifically, what is SAFDZ?

A: These are zones identified based on the network of protected areas for agricultural and agro-industrial development or NPAAAD. What makes SAFDZ vital is the principle of using efficiency in assigning agricultural areas for food production and security.

Q: How will the food security program be sustained?

Q: What is the relevance of applying NAAAD and SAFDZ?

Q: What other activities are undertaken to implement AFMA?

Q: What is contained in the AFMP?

A: The AFMP also serve as the Agriculture and Fisheries Sector Development Plan. It integrates not only the different integrated development plans but also, the public investment program needed to modernize agriculture and fisheries sectors. Incorporated in this plan are the municipal, provincial and regional SAFDZ Integrated Development Plans.

Q: Are there any principles used in AFMP?

A: The AFMP focuses on food security, poverty alleviation and social equity; income enhancement and profitability; global competitiveness and sustainability. There will be close linkages with the stakeholders, using participatory approach while preparing the AFMP.

Q: Is there a credit component under AFMA?

A: Yes. The Agricultural Credit Policy Council in coordination with the National Credit Council will package an Agro-industry Modernization Credit and Financing Program (AMCFP) that will provide credit assistance programs to small and medium scale industries. The program makes credit accessible to all regardless of economic status.

Q: What other support services are included?

A: One of the most important support services included is irrigation. The law requires that the irrigation system to be developed must be effective, affordable, appropriate and efficient. No watersheds should be destroyed and existing irrigation systems have to be rehabilitated.

Q: How will the irrigation development be done?

A: To ensure that all priority irrigation projects are properly identified and managed, the Department of Agriculture through the National Irrigation Administration (NIA), Bureau of Agricultural Research (BAR), Bureau of Soils and Water Management (BSWM) will conduct an Irrigation Research and Development. It will also coordinate with the Department of Environment and Natural Resources to preserve and rehabilitate watersheds.

Q: What activities are lined-up to develop the irrigation system?

A: NIA shall continue to plan, design, develop, rehabilitate and improve the existing national irrigation systems. Likewise, they shall also gradually turn over the operation and maintenance of the irrigation system particularly the secondary canals and on-farm facilities to the irrigators associations (IA).

Q: Are the irrigators associations prepared to handle the operation and maintenance of irrigation system?

A: The IAs and the local government units have to be included in the implementation of any national irrigation project for proper turnover. IAs, on the other hand, will be provided with a capability-building program to ensure that proper management of the irrigation system once it is turned over to IAs. Likewise, the planning, design and management of communal irrigation system (CIS) will be turned over to the local government units. As such, budget for CIS development will be coursed through LGUs with NIA providing technical assistance.

Q: Aside from the government, who else are involved in the development of

the irrigation system?

A: There is a plan to include the private sector such as the farmers, farmers associations or NGOs in developing minor irrigation schemes like shallow tube wells and low-lift pumps. TFinancial institutions will be encouraged to fund the acquisition of essential irrigation equipment.

Q: What kind of support will be given in terms of marketing?

A: The government will form the National Marketing Assistance Program. This will match farmers and fisher folks with the buyers in local and foreign markets. The NMAP is a collaboration of different organizations that support agriculture and fisheries marketing activities and post harvest technology. At the same time, the NMAP is a prelude to forming the National Marketing Umbrella (NMU).

Q: What is NMU?

A: The NMU is a private marketing system of agribusiness cooperatives and organizations to provide competitive and sustainable market access to small and medium scale producers and entrepreneurs.

Q: What will be the scenario of NMU?

A: Through NMU, there will be continuous contact with producers and buyers. The NMU will also arrange to institutionalize the needed physical and financial requirements in various production and marketing activities (such as procurement, handling, transportation, packaging). Another feature of the NMU is a product database linked to the National Information Network.

Q: What is the National Information Network (NIN)?

A: The NIN is an information set-up linking different research institutions for accessible data on agriculture and fisheries research and technology. Information such as supply and demand, price and price trends, product standards, directory of cooperatives, traders and other business institutions should be updated regularly and made available on the internet. It is also through NIN that R&D results are communicated.

Q: Since AFMA deals with modernizing Philippine agriculture, are there any provisions to improve ports, roads and other infrastructure?

A: The Department of Transportation and Communication together with Philippine Ports Authority and Philippine Fisheries Development Authority should determine priority fish ports, seaports and airports, and install the needed handling and storage facilities. The local government units are asked to provide a counterpart of not less than 10% of the project cost for the construction of identified farm-to-market roads, subject to their IRA level. The DA will work together with LGUs and the Department of Public Works and Highways. Aside from this, they will also work on the water supply system.

Q: Who takes care of the rural energy development?

A: In terms of rural energy, DA will coordinate with concerned government agencies in identifying and installing the needed energy resources to enhance agriculture and fisheries development in the community.

Q: Are there any measures to safeguard consumer safety in the use of agriculture and fisheries products?

A: DA established the Bureau of Agriculture and Fisheries Product Standards (BAFPS), in coordination with the Department of Trade and Industry. The BAFPS will formulate and enforce quality standards in processing, preserving, packaging, labeling and other involved procedures; conduct research on product standards; and inspect processing plants, storage places and markets to ensure that all products sold are fresh and pass the required criteria.

Q: How does the human resources development program under AFMA work?

A: The Commission on Higher Education will form a National Agriculture and Fisheries Education System (NAFES), an integrated system of agriculture and fishery education covering three levels in public and private schools. This will rationalize agriculture and fisheries education in all levels of education; and improve the implementation of academic program on agriculture and fisheries development.

Q: What kind of programs will be implemented to support the education system?

A: There will be an agriculture and fisheries program for elementary, secondary and post-secondary levels to be handled by the Department of Education and TESDA. A network of National Centers of Excellence (NCE) in Agriculture and Fisheries Education consisting of qualified public and private colleges and universities in the field of agriculture and fisheries will also be identified. There will also be a scholarship program to deserving staff to pursue further studies.

Q: Since RA 8435 sought to modernize Philippine agriculture, it is important to prioritize R&D. How does the government intend to improve R&D in the country?

A: R&D activities in agriculture will be multidisciplinary, involving farmers, fishermen and their organizations as well as those involved in processing, both in the private and public sectors. Autonomy and academic freedom among institutions will be practiced to ensure quality output. There will also be a harmonized merit and output-oriented promotion system for personnel. In terms of funding, DA and other research agencies are encouraged to source funding assistance from the private sector (aside from what is mandated in the law) for R&D activities.

Q: What agencies are involved in R&D?

A: The existing National Research and Development System in Agriculture (NaRDSAF) will be consolidated with the Dept. of Science and Technology and other concerned agencies. The Council on Extension, Research and Development in Agriculture or CERDAF will carry out the mandate to enhance, support and consolidate the NaRDSAF, with BAR acting as the Secretariat for R&D, while ATI acts as secretariat for the extension component. One of the major functions of BAR with respect to CERDAF is to develop an agriculture and fisheries R&D information system in relation to NIN.

Q: What are the provisions for extension services?

A: To speed up the transformation of the countrys agriculture from a resource-based to technology-based industry, the farmers and fishermen will be given services on training, advisory, demonstration and information and communication support. A National Extension System for Agriculture and Fisheries will be established composed of the national government, local government and private sector.

Q: What is the role of states, colleges and universities in providing extension services?

A: The SUCs are expected to help by improving the extension capabilities of those in the local government by providing them training programs, technical assistance, extension and research, among others.

Q: Will there be a possibility of more work opportunities in the countryside with the implementation of AFMA?

Q: What comprises the Basic Needs Program?

A: This is a community-based program focusing on the basic needs of a rural household that will help those in the countryside adjust to changing economic and employment conditions. Its shall have components on education, rural industrialization and industry dispersal, financing, health and nutrition, basic infrastructure and food security. The local government will replicate the program in their area with the help of concerned government agencies and the private sector.

Q: What is rural industrialization and industry dispersal program?

A: This program works by giving incentives to businesses and industries that are related to agriculture through the Board of Investments, the local government units and other concerned government agencies. Concerned government agencies will provide integrated services to prospective investors by using the concept of a one-stop shop center. The local government units will also have to undertake investment missions and identify areas for industrial parks that will entice investors to come in.

Q. What kind of incentives will be offered to those who wish to invest in agricultural enterprises?

Q. Who are involved in implementing this law?

A: The Department of Agriculture is in control of implementing this law, along with the some attached agencies and bureaus and line agencies. Assisting the Department in monitoring and coordinating is the NAF Council, the integrative and consultative structure for an effective collaboration of programs implemented by the other concerned agencies under the AFMA. To serve the requirements of the NAF Council, its Secretariat and staff, which is the NAFC is mobilized.

Q: Who are the members of the NAF Council?

A: The members of the Council, represented by its Secretary, are as follows:

Commission on Higher Education

Department of Agrarian Reform

Department of Budget and Management

Department of Education

Department of Environment and Natural Resources

Department of Finance

Department of Interior and Local Government

Department of Labor and Employment

Department of Public Works and Highways

Department of Science and Technology

Department of Trade and Industry

Department of Transportation and Communication

National Economic and Development Authority

Technical Education and Skills Development Authority

Chairpersons of the national committees of the NAFC

Representatives of the Fisheries and Aquatic Resource Management Council

Q. What is the role of the Congressional Oversight Committee on Agriculture and Fisheries Modernization?

A: This Committee is composed of the chairmen of the Committee on Agriculture of both Houses, along with six members of the House of Representatives and Senate. It shall oversee and monitor the implementation of the Congressional Commission on Agricultural Modernization recommendations, programs, projects and activities. It will also ask for any assistance, if needed, from any agency to carry out its plans. It will also conduct hearings, receive testimonies and reports related to agricultural and fisheries modernization processes, among its other functions.