Article 147Labor and Agrarian Laws and Social Legislation, p. 147

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

CHAPTER VI Water Management and

Irrigation Facilities

SECTION

19.

Water

Management .

—

The

Government shall provide adequate support services that

will

address

the

development,

management

and

conservation of water resources. The Department of

Public

Works

and

Highways,

through

the

National

Irrigation

Administration

and

the

Department

of

Agriculture,

and

with

the

participation

of

farmers'

organizations, shall undertake the implementation of

small water impounding projects which can provide

supplemental irrigation and additional income from fish

and duck raising, and at the same time minimize soil

erosion, siltation and flooding. Training programs for

small farmers on these subjects shall be provided.

Focus shall also be made on small irrigation systems

which are more efficient, cost-effective and cheaper to

establish.

The

design

and

construction

of

irrigation

systems shall be based not only on economic rate of

return but also on the sustainable use of these systems.

Inefficient and underutilized irrigation systems shall be

rehabilitated, improved and maintained.

To

enhance

the

compatibility

of

environmental

protection with sustained agricultural productivity, the

Department of Environment and Natural Resources shall

adopt measures to promote conservation practices such

as reforestation, watershed management, antipollution

programs and other similar measures. In addition, the

Department

of

Agriculture

shall

implement

specific

measures

to

ensure

that

farming practices are not

detrimental to the environment.

To

ensure

the

protection

of

watersheds

and

availability of irrigation services in rainfed and upland

farms,

the

Department of Environment and Natural

Resources shall, in collaboration with local government

units, strictly enforce conservation measures and provide

for the restoration of the protective forest cover and

stability

of

the

country's

critical

watersheds.

Farmer-beneficiaries shall be organized into irrigators'

associations which shall be tapped by the Department of

Environment and Natural Resources to implement its

community-based reforestation projects, particularly the

development and management of watershed of the

irrigation projects. To ensure the integration of irrigation

delivery systems with other agriculture support services,

there shall be close coordination among the National

Irrigation Administration, the Department of Agriculture,

and

the

Department

of

Environment

and

Natural

Resources through the local development councils.

The Bureau of Soils and Water Management shall

prepare for each barangay, municipality or city which is

predominantly

agriculture-based

parcellary

maps

identifying agricultural lands which can be reached by

irrigation systems. In order to ensure the availability of

irrigation services in areas with production potential, the

Government

shall

implement

irrigation

pump

distribution programs particularly in areas predominantly

populated by small farmers.

SECTION 20. Access to Irrigation Services . — While

the

Government,

through

the

National

Irrigation

Administration

(NIA)

and

other

concerned

offices,

continues

to

provide

irrigation

services,

farmers'

organizations shall be encouraged to spearhead the

construction of irrigation systems. Towards this end, the

Government shall encourage small farmers to join or form

irrigators'

associations.

In

addition,

it

shall

promote

participation of farmers to develop their capabilities to

eventually assume the operation and maintenance of

irrigation systems and the responsibility of collecting fees

from the individual members and remitting an amount

to the NIA.

The

NIA

shall

undertake

the

development

and

institutionalization of second-crop irrigation facilities in

support

of

multi-crop

farming.

It

shall

also

devise

schemes for small farmers to avail of electric pumps or

diesel-powered deep well irrigation systems in barangays

or communities where water is scarce.

CHAPTER VII Agricultural Credit

SECTION 21. Rural Credit Delivery System . — An

efficient credit delivery system guided by a sound rural

credit policy geared towards the needs of small farmers

shall be established. The features of the credit delivery

system for small farmers shall include, among others, a

maximum rate of interest not to exceed seventy-five

percent (75%) of commercial rate per annum inclusive of

all service, penalty and other charges. It shall also include

minimum

collateral

requirements,

accessibility,

reasonable

repayment

terms,

expeditious

loan

documentation and processing procedures. Services shall

be expanded to include not only loans for procurement of

production inputs but also for other needs and purposes

of small farmers such as education and health needs.

The

Department

of

Agriculture,

through

the

Agricultural

Credit

Policy

Council

(ACPC)

and

other

concerned

agencies,

shall

give

subsidies

for

the

education

and

training

of

small

farmers

on

credit

awareness, loan acquisition and loan repayment. It shall

conduct an intensive information drive that will promote

the

establishment

of

strong

and

viable

farmers'

organizations

such

as

cooperatives,

credit

unions,

rotating

savings,

and

credit

associations

and

non-government

organizations

(NGOs)

which

play

a

major role in increasing small farmers' access to credit.

Likewise, the Government shall also set up a system

which will provide information on the credit worthiness of

potential borrowers.

In order to reduce the risks and administrative costs

of lending institutions, the Government shall expand its

loan

guarantee

coverage

under

the

Comprehensive

Agricultural Loan Fund to be administered by the ACPC

and crop insurance programs to cover not only rice and

corn

but other crops, livestock, poultry, fishery, and

agroforestry as well. The ACPC shall conduct special

projects to promote innovative financing schemes for

small farmers. Payments under such insurance program

shall be prompt and any delay without just cause shall

entitle the beneficiary to reasonable interest rate on the

amount due.

In

addition,

the

Government

shall

promote

the

development of farmers' organizations. Toward this end,

the Government, through the ACPC and other concerned

agencies,

shall

subsidize

costs

of

information

dissemination, monitoring, training and registration. The

farmers' organizations may serve as conduits of rural

banks, private development banks and other banks for

effective agricultural credit delivery. An amount shall be

earmarked for lending exclusively farmers' cooperatives at

subsidized interest rates.

All agricultural lending programs of the Government

are

hereby

consolidated

and

placed

under

the

administration of the Land Bank of the Philippines. The

funds

shall

be

augmented

by

annual

budgetary

allocations which shall be managed as a self-sustaining

fund

base

by the Land Bank of the Philippines in

coordination with the ACPC.

A portion of all loanable agricultural funds shall be

utilized for direct lending to small farmers for their

production,

processing,

postharvest

and

marketing

requirements.

To be able to generate funds that will be used to

cover for the administrative costs of the agricultural funds

being handled by the Land Bank of the Philippines, all

government

agencies

that

are

involved

in

the

development of the small farmers shall be allowed the

option to deposit their funds in the Land Bank of the

Philippines.

SECTION 22. Cooperative Banks . — Small farmers

shall have access to reasonable credit/loan package. The

Government

shall

promote

the

establishment

of

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