I.
Summary
The Agricultural and Fisheries Mechanization (AFMech) Law, also known as Republic
Act No. 10601, was enacted by the Senate and House of Representatives of the Philippines in
Congress assembled on July 23, 2012. The law aims to promote developing and adopting
modern, appropriate, cost-effective, and environmentally safe agricultural and fisheries
machinery and equipment to enhance farm productivity and efficiency, achieve food security
and safety, and increase farmers' incomes. It also seeks to provide a conducive environment
for the local assembling and manufacturing of engines, machinery, and equipment for
agricultural and fisheries production, processing, and marketing. The law ensures the quality
and safety of machinery and equipment locally manufactured or imported by strengthening
regulation through the development and enforcement of machinery and machine performance
standards, regular testing and evaluation, registration, and the accreditation and classification
of suppliers, assemblers, and manufacturers to ensure compliance with prescribed quality
standards. The law also strengthens support services such as credit facilities, research, training
and extension programs, rural infrastructures, postharvest facilities, and marketing services.
The National Agri-fishery Mechanization Program was formulated to promote and support the
local development and manufacture of agricultural and fisheries machinery by the private
sector, unify and support the efforts of various institutions in the research, design, and
development of agricultural and fisheries machinery, establish quality, safety, and performance
standards for agricultural and fisheries machinery, support the establishment of quality, safety,
and performance testing centers for the certification of agricultural and fisheries machinery,
establish guidelines for the registration of ownership of agricultural and fisheries machinery,
and promote the adoption of certified agricultural and fisheries machinery for improving
agriculture and fishery productivity. The law also provides for the creation of an Agricultural and
Fisheries Mechanization Committee (AFMeC) under the National Agricultural and Fishery
Council (NAFC) to ensure the success of the programs and activities of the Department of
Agriculture (DA) concerning agricultural and fisheries mechanization. The DA Bureau of
Agricultural and Fisheries Engineering (BAFE) was also created to coordinate, oversee, and
monitor the national planning and implementation of agri-fisheries engineering, farm-to-market
road,
and
other
agri-fisheries
infrastructure
projects.
The RA 8435, also known as the Agriculture and Fisheries Modernization Act of 1997,
aims to modernize the agriculture and fisheries sectors in the Philippines to enhance their
profitability and prepare them for the challenges of globalization. The Act declares the policy of
the State to promote industrialization and full employment based on sound agricultural
development and agrarian reform, ensuring equitable access to resources, income
opportunities, and support services for those in the agriculture and fisheries sectors. It also
emphasizes promoting food security, market-oriented policies, sustainable development, and
protection from unfair competition. The Act outlines various objectives, including modernizing
the agriculture and fisheries sectors, enhancing profits and incomes for small farmers and
fisherfolk, ensuring food accessibility and stability, and promoting industry dispersal and rural
industrialization. Additionally, it establishes a National Agriculture and Fisheries Education
System to prioritize education and training on science and technology to accelerate social
progress and promote total human liberation and development. The Act also includes
provisions for periodic reports, automatic review every five years, and the establishment of a
Congressional Oversight Committee on Agricultural and Fisheries Modernization to oversee
and
monitor
its
implementation.
II.
Purpose
of
the
Law
AFMECH
The Agricultural and Fisheries Mechanization (AFMECH) Law, also known as Republic
Act No. 10601, was enacted by the Senate and House of Representatives of the Philippines in
Congress assembled in 2012. The purpose of the law is to promote the development and
adoption of modern, appropriate, cost-effective, and environmentally safe agricultural and
fisheries machinery and equipment to enhance farm productivity and efficiency. The law aims
to achieve food security and safety and increase farmers' incomes. It also provides a conducive
environment for the local assembling and manufacturing of engines, machinery, and equipment
for agricultural and fisheries production, processing, and marketing. The AFMECH law ensures
the quality and safety of machinery and equipment locally manufactured or imported by
strengthening regulation through the development and enforcement of machinery and machine
performance standards, regular testing and evaluation, registration, and the accreditation and
classification of suppliers, assemblers, and manufacturers to ensure compliance with
prescribed quality standards. The law also strengthens support services such as credit facilities,
research, training and extension programs, rural infrastructures, post-harvest facilities, and
marketing services. The AFMECH law delivers integrated support services to farmers,
fisherfolk, and other stakeholders and assists them in operating and managing their agricultural
and
fisheries
mechanization
projects.
AFMA
The Agriculture and Fisheries Modernization Act (AFMA) of 1997, also known as Republic Act
No. 8435, was enacted to modernize the agriculture and fisheries sectors in the Philippines.
The law aims to enhance the profitability of these sectors and prepare them for the challenges
of globalization by providing necessary support services and appropriating funds for this
purpose. It declares the policy of the State to promote industrialization and full employment
based on sound agricultural development and agrarian reform, with the goal of achieving a
more equitable distribution of opportunities, income, and wealth. The law also seeks to promote
food security, rational use of resources, global competitiveness, sustainable development,
people empowerment, and protection from unfair competition. It outlines specific objectives,
such as modernizing the agriculture and fisheries sectors, enhancing profits and incomes for
small farmers and fisherfolk, ensuring food accessibility and stability, promoting market-driven
approaches, and improving the quality of life for all sectors. The AFMA also includes provisions
related to credit, national information networks, infrastructure support services, research and
development, and extension services. Additionally, it establishes an Oversight Committee to
submit periodic reports and mandates an automatic review every five years by an independent
panel of experts appointed by the President.
III.
Status
of
Implementation
Republic Act 8353, also known as the Agriculture and Fisheries Modernization Act
(AFMA), was signed into law in 1997. On the other hand, Republic Act 10601, also known as
the Agricultural and Fisheries Mechanization (AFMech) Law, was signed into law in 2013. The
AFMech law shall be implemented through the creation of the Agricultural and Fisheries
Mechanization Committee (AFMeC) under the National Agricultural and Fishery Council
(NAFC), which shall act as an advisory body to ensure the success of the programs and
activities of the Department of Agriculture (DA) concerning agricultural and fisheries
mechanization. As of March 2023, government agencies and industry stakeholders are
reviewing the implementation of the AFMech Law. The Department of Agriculture, through the
Philippine Center for Postharvest Development and Mechanization (PhilMech), has conducted
public consultations regarding the Implementing Rules and Regulations of the AFMech Law.
(Aquino, et. al., 2013). The status of the implementation of Republic Act (RA) 835 AFMA Law
and AFMeC law in the Philippines is a topic of ongoing review and assessment. RA 835, aims
to promote sustainable and equitable development in the agriculture and fisheries sector.
However, a study by the Philippine Institute for Development Studies suggests that the sector
has not yet fully modernized based on the law's objectives. (Panay News, 2022) Overall, the
implementation and impact of these laws are subjects of ongoing evaluation and efforts to
improve the agriculture and fisheries sector in the Philippines.
IV.
Review of RA policy
The Agriculture & Fisheries Modernization Act (AFMA) spans various chapters and
sections, outlining policies and strategies aimed at bolstering the agricultural and fisheries
sectors in the Philippines. Title 1 encompasses credit policies, emphasizing poverty alleviation
and rural growth by providing credit access to small farmers, fisherfolk, and SMEs involved in
agriculture and fisheries. This section highlights the importance of credit management and
utilization while encouraging the active involvement of banking sectors and government
financial institutions in rural financial systems. It mandates the phase-out of Directed Credit
Programs (DCPs) within a specified timeframe, transferring loanable funds to cooperatives,
rural banks, and NGOs for the Agro-Industry Modernization Credit and Financing Program
(AMCFP). Additionally, it delineates the coverage and scope of the AMCFP, addressing various
aspects such as production, processing, storage, infrastructure, agribusiness, and credit
guarantees for farmers and fisherfolk. Furthermore, it emphasizes the rationalization of credit
guarantee schemes and the formation of an Agriculture and Fisheries Credit Guarantee Fund,
aiming to improve lending access for agriculture and fisheries activities while ensuring
sustainability
and
financial
viability.
Title 2 of the Agriculture & Fisheries Modernization Act (AFMA) focuses on Human
Resource Development, emphasizing education, training, and enhancement of skills in science
and technology to drive social progress and human development. It outlines the establishment
of the National Agriculture and Fisheries Education System (NAFES) by the Commission on
Higher Education (CHED) to modernize and coordinate agriculture and fisheries education
across all levels. The Act specifies programs for elementary, secondary, and post-secondary
education tailored for agriculture and fisheries, intending to instill positive values, promote
science appreciation, and develop entrepreneurial mindsets among students. Section 71 Counterpart Funding from LGUs: The requirement for LGUs to provide 10% of the MOOE
budget for provincial institutes lacks clarity on the mechanisms for enforcement, especially in
financially constrained LGUs. There's a need for flexibility or alternative approaches to ensure
compliance without burdening economically challenged local units. Furthermore, it establishes
a Network of National Centers of Excellence (NCE) and requires the rationalization of existing
educational institutions not accredited as NCEs. It mandates a provincial contribution to support
provincial institutes and necessitates the formulation of a National Integrated Human Resource
Development Plan in Agriculture and Fisheries. The Act introduces Output-Oriented
Performance Standards for educational institutions and sets up an Agriculture and Fisheries
Board in the Professional Regulation Commission to uplift the profession. Additionally, it
emphasizes continuing education, scholarships, a merit system for academic personnel, and
delineates the budgetary allocation scheme for educational institutions within the NAFES
framework.
Title 3 of the Agriculture & Fisheries Modernization Act (AFMA) focuses on Research,
Development, and Extension services in the agricultural and fisheries sector. Chapter 1
emphasizes the establishment of a robust National Research and Development System for
Agriculture and Fisheries, advocating multidisciplinary research activities and setting funding
guidelines. Section 83: Funds for Research and Development. The allocation of budgets for
agriculture and fisheries research and development is set at one percent (1%) of the gross
value added (GVA) by 2001. However, the amount may not be sufficient considering the
evolving research needs and inflation over time. There could be a need for periodic review and
adjustments to adequately support research and development.
It also underlines the importance of excellence, accountability, and effective
communication of research results through the National Information Network (NIN). Chapter 2
emphasizes the extension services, promoting the delivery of advisory, training, and
demonstration services to farming and fishing communities. It aims to establish a National
Extension System involving government, local sectors, and the private industry, with LGUs
playing a pivotal role in providing extension services while fostering private sector participation
and
accountability
in
training
and
extension
activities.
Title 4 of the Agriculture & Fisheries Modernization Act (AFMA) underscores Rural NonFarm Employment, aiming to improve rural livelihoods and curtail migration to urban centers.
Chapter 1 emphasizes the Basic Needs Program, focusing on education, rural industrialization,
and income augmentation for rural workers. It stresses the voluntary participation of the private
sector and the government's role in facilitating pilot programs for effective planning and
execution. The absence of credit subsidies might pose challenges for small-scale enterprises
or farmers who lack access to formal financing. Alternative mechanisms or support systems
could be explored to assist these entities without adversely affecting banking rules. Chapter 2
advocates for government agency collaboration, local government responsibility, and the role
of cooperatives in fostering basic needs enterprises. Chapter 3 highlights Rural Industrialization
and Industry Dispersal Programs, emphasizing market-driven industrial development in rural
areas. It outlines the role of government agencies in providing integrated services, incentives
for enterprises linked to agriculture, and the identification of areas for industrial parks. Chapter
4 emphasizes worker training through TESDA, DENR, and TLRC, targeting skill development,
coastal resource management, entrepreneurship, and special training projects for women to
integrate them into rural employment programs.
Title 5 of the Agriculture & Fisheries Modernization Act (AFMA) encompasses trade
and fiscal incentives aimed at bolstering rural development. Section 108 stresses that taxation
policies should not hinder the growth of value-adding activities in rural areas. Sections 109 to
113 focus on tariff and duty exemptions for agriculture and fisheries inputs, equipment, and
machinery for certified enterprises, laying down penalties for circumvention, initial
appropriations, continuing appropriations, and sources of funding. Section 109: Exemption from
Tariffs and Duties. Providing exemptions for agriculture and fisheries inputs, equipment, and
machinery might impact local industries producing similar goods. There's a need for careful
assessment and safeguard measures to prevent adverse effects on local manufacturers and
markets. Section 114 establishes a Congressional Oversight Committee on Agricultural and
Fisheries Modernization to monitor implementation and support the modernization program,
while Sections 115 to 117 define its powers, functions, periodic reports, and automatic review
processes. Sections 118 and 119 cover the repealing and separability clauses, and Section
120 specifies the Act's effectivity.
AFMECH
Article I of Republic Act No. 10601 is dedicated to establishing the Declaration of Policy,
Definition of Terms, and Coverage concerning agricultural and fisheries machinery and
equipment. The policy aims to promote the development and adoption of contemporary, costeffective, and eco-friendly machinery, emphasizing enhanced farm productivity, food security,
and increased farmers' incomes. It underscores the importance of local assembling and
manufacturing while ensuring stringent quality and safety standards for both locally made and
imported machinery. Additionally, the policy prioritizes support services such as credit facilities,
research, training, infrastructure, postharvest facilities, and marketing services. The section on
definitions clarifies the scope of machinery, agricultural and fisheries mechanization, agroindustrial processing, and fishing boats, setting the groundwork for the Act's application.
Although the provision broadly covers the application of the Act to various aspects of machinery
and equipment, there's a lack of specific guidelines for effective regulation, operation, and
maintenance. Detailed implementation frameworks and monitoring mechanisms could enhance
the effectiveness of this provision.
Article II establishes the National Agri-fishery Mechanization Program, mandating its
formulation by the Department of Agriculture (DA). The program aims to foster local
development and manufacturing of machinery, unify research efforts, set standards, support
testing centers, establish ownership registration guidelines, and promote certified machinery
adoption for improved agricultural and fishery productivity. The program's implementation
responsibilities lie with the DA, encompassing the formulation of a five-year plan, leadership in
ownership registration guidelines, setting standards and guidelines for machinery, managing
credit programs, overseeing implementation, and coordinating with other governmental bodies
and local units. These articles collectively emphasize policy declarations, define terms, and
outline the objectives and strategies of the National Agri-fishery Mechanization Program to
boost agricultural and fisheries productivity through modern machinery and standardized
practices.
Article III of Republic Act No. 10601 is dedicated to Research, Extension, and Human
Resource Development in agricultural and fisheries mechanization. It outlines the formulation
of a unified National Agricultural and Fisheries Mechanization Research and Development and
Extension (RDE) Agenda, aiming to integrate efforts among government agencies, local units,
universities, and colleges. This agenda encompasses the development, testing, and
commercialization of machinery, utilization of renewable energy sources, establishment of
quality standards, and comprehensive training programs. Additionally, the Act establishes an
Agricultural and Fisheries Mechanization RDE Network responsible for executing the R&D
Agenda, consisting of research institutions, local organizations, and machinery-related
associations. It encourages the establishment of Agri-fisheries Machinery and Equipment
Service Centers to provide various post-sales services, training, and repair facilities,
emphasizing that ownership and operation of these centers can extend beyond machinery
suppliers. These sections highlight skill development initiatives. However, specific mechanisms
for equitable access to training, ensuring quality standards, and regular updates to certification
systems could be further detailed. Moreover, it stresses the creation of an Agri-fishery
Mechanization and Engineering Resource Network to consolidate databases and facilitate
machinery registration, project monitoring, and information sharing among relevant agencies.
Lastly, the Act outlines provisions for research grants, training programs, manpower
requirements, skills certification, and scholarships, emphasizing the importance of developing
expertise and fostering innovation in agricultural and fisheries mechanization.
Article IV primarily focuses on Local Assembly, Manufacture, Supply, and After-Sales Service
concerning agricultural and fisheries machinery. It promotes local production through
partnerships between the Department of Agriculture (DA), private sectors, and research
institutions, facilitating feasibility studies and research for local assembly. Moreover, the Act
provides incentives for local manufacturers and emphasizes the provision of after-sales
services by various stakeholders, ensuring comprehensive service monitored by agricultural
offices and a Bureau of Agricultural and Fisheries Engineering. Section 16, the provision
mentions incentives for local manufacturers and assemblers but lacks specifics regarding the
nature, duration, and criteria for eligibility. Clarity on the qualifications and mechanisms for
granting incentives is essential for transparent implementation.
Article V concentrates on Testing and Evaluation, Registration, Standardization, and
Accreditation related to agricultural and fisheries machinery. It mandates pre-sale evaluation,
continuous testing, and maintenance of registries for certified and denied equipment.
Furthermore, Sections 18 to 22 establish guidelines for machinery registration, certification, and
enforcement of standards and accreditation systems, ensuring compliance and quality control.
However, there is a need for further detail on the procedures, criteria, and regulatory
mechanisms to ensure effective implementation, certification, and compliance. Clear guidelines
and accessible processes for manufacturers, importers, and dealers are essential. Lastly, the
Act encourages private-led accreditation systems, emphasizing adherence to organizational
strengths, capabilities, and track records within machinery stakeholders' classifications.
Article VI of RA10601 primarily establishes key institutional frameworks for agricultural
and fisheries mechanization. It introduces the Agricultural and Fisheries Mechanization
Committee (AFMeC) as an advisory body aimed at ensuring the success of mechanization
programs. Additionally, it sets up the Bureau of Agricultural and Fisheries Engineering (BAFE)
to oversee the planning, implementation, and enforcement of engineering standards. The
creation of the Philippine Center for Postharvest Development and Mechanization (PHILMech)
and the Agricultural Machinery Testing and Evaluation Centers (AMTEC) underlines the focus
on postharvest R&D and setting quality standards for machinery. Overall, this article aims to
coordinate, regulate, and implement mechanization initiatives at national and local levels while
creating standardization and testing mechanisms. While the establishment of these bodies and
their defined functions appear comprehensive, ensuring effective coordination among various
agencies and ensuring compliance across national and local levels could pose implementation
challenges. Financial implications and resource allocation for these institutions, especially
within lower-income LGUs, might hinder their capacity to fully implement mechanization and
engineering projects.
Article VII focuses on the responsibilities of Local Government Units (LGUs) concerning
agricultural and fisheries machinery, emphasizing implementation, regulation, and
strengthening of agricultural engineering divisions within LGUs. It obliges LGUs to conduct
applied research, and manage, and regulate machinery and equipment, including fee
collection. Furthermore, it highlights the need to strengthen and institutionalize agricultural
engineering divisions within LGUs, especially in planning, coordinating, and implementing
mechanization and infrastructure projects. The article outlines specific functions, including
engineering services, coordination with national agencies, training programs, and the creation
of agricultural engineering units within LGUs based on income classifications. While assigning
responsibilities to LGUs is crucial for localized implementation, the financial constraints faced
by lower-income LGUs could limit their ability to establish necessary divisions and hire qualified
personnel. Coordinated efforts and financial support from the Department of Agriculture (DA)
will be vital to ensure effective implementation across diverse LGUs.
The eightieth article prohibited acts related to agricultural and fisheries machinery,
outlining unlawful actions such as selling or operating machinery without proper registration or
warranty, or operating an unaccredited testing center. It imposes penalties ranging from fines
of Php 1,000 to Php 10,000, imprisonment of up to one year, or both, for violations. Moreover,
it includes provisions for forfeiture or closure proceedings against entities or testing centers
found non-compliant. The article emphasizes the importance of certified machinery and
warranty, mandating legal actions against businesses failing to rectify deficiencies in sold
machinery within a stipulated timeframe. The provisions are aimed at enforcing compliance with
regulations regarding machinery, ensuring quality, safety, and accountability. However, the
efficacy of the penalties and their enforcement mechanisms might need clarity and potential
revision to ensure their practical implementation and deterrence.
The last article part focuses on diverse aspects related to agricultural and fisheries
mechanization. It mandates Local Government Units (LGUs) to formulate and implement their
mechanization plans as part of their local development plans. The article highlights the
promotion of contiguous farming, advocating for the clustering of agricultural lands, and scaling
up operations for enhanced efficiency and economies of scale. It stresses the adoption and
promotion of renewable energy sources for machinery operations, priority investment in
infrastructure development, and mandates the promulgation of necessary rules and regulations
within six months of the Act's enactment. Additionally, it outlines funding allocations from
various government bodies for implementing the Act's provisions and establishes a
Congressional Oversight Committee for Agricultural and Fisheries Modernization. The
provisions underline a comprehensive approach to enhance agricultural and fisheries
mechanization. However, successful implementation requires clear guidelines, effective
funding distribution, and practical mechanisms for oversight and monitoring to ensure the
actualization of outlined goals and objectives.
The Agricultural and Fisheries Mechanization (AFMech) Law and the Agriculture and
Fisheries Modernization Act (AFMA) share the common goal of modernizing Philippine
agriculture and fisheries to make them more efficient, productive, and globally competitive
sectors. Both laws focus on adopting modern technologies and best practices, enforcing
product standards, encouraging local manufacturing, and improving access to integrated
support services. The AFMech Law specifically promotes farm machinery and equipment while
the AFMA covers broader modernization efforts. Additionally, the two laws establish dedicated
oversight bodies, mandate local development plans, emphasize skill-building programs, and
provide for research and development. While the AFMech Law zooms in on the mechanization
aspects, the broader AFMA Act provides the overarching policy framework and enabling
environment for this mechanization to thrive. The incentives, credit access, and coordination
mechanisms laid out across both laws also complement each other well to drive standardized
practices, locally-assembled machinery adoption, and improved knowledge application.
Together, the provisions of the AFMech and AFMA laws provide interlinked support across
technology, services, human capital, and research to realize the shared vision for a modern
and
globally
competitive
agriculture
and
fisheries
sector.
V.
Conclusion
When it comes to modernizing Philippine agriculture, the AFMech and AFMA laws are
like two gears working together to upgrade our farms and fisheries. The AFMech Law signed
in 2012 is the more hands-on one. It helps farmers get better equipment and machines to
directly improve productivity - like providing loan support or quality standards. The broader
AFMA law from way back in 1997 lays down policies for bigger-picture upgrades like education
programs, global trade incentives, and research to bring the whole sector up to speed.
While one focuses on the machines and the other on the wider system, both aim for
the same destination - to bring Philippine agriculture into the 21st century through technology!
The AFMech zooms into the equipment, while AFMA builds the base to maximize and support
their usage. It's 2023 now, and reviews show there's still a way to go before fully achieving the
visions of the two laws. Turns out upgrading such a huge sector tied to so many livelihoods is
tough! Issues like agency coordination, monitoring farms across islands and limited budgets in
rural areas prove to be bottlenecks. But the building blocks are clearly there through the
AFMech and AFMA - from clearly defined standards and incentives to institutional support
systems. By pressing on the pedal for proper implementation, from securing funds to
cooperative efforts, the laws can shift Philippine agriculture and fisheries into higher gear.
Helping unlock their full potential to thrive amid global competition through broad, innovationled transformation.