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
IV.
ongoing evaluation and efforts to improve the agriculture and fisheries sector in the
Philippines.
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
Non-Farm 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,
cost-effective, 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, agro-industrial 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.