Section 16Sec./Art. 16

Allocation and Disbursement of the AnCEF. - Subject to the usual accounting and auditing rules and regulations, the AnCEF shall be annually allocated, disbursed, and used as follows:

(a) Twenty-six Percent (26%) for repopulation and herd build-up, and improvement and accreditation of established breeding centers/stock farms nationwide based on the NAIDP. The fund shall be allocated to the BAI and distributed as follows:

(1) Seventy percent (70%) for poultry;

(2) Twenty percent (20%) for poultry;

(3) Five percent (5%) for native animals; and

(4) Five percent (5%) for other animals:

Provided, That the breeder/stock farm for paragraphs (1) and (2) shall refer only to cooperatives or association of at least fifteen (15) hog/poultry farms, which have been in existence for at least five (5) years.

They should have a counterpart contribution of at least a two(2)-hectare lot for said breeder/stock farm: Provided, further, That paragraphs (3) and (4) shall be coursed through the nucleus farms of the BAI all over the country, equally divided, which in turn shall be responsible in producing animals such as, but not limited to, pigs, chickens, sheep, goats, and cattle, and to be distributed to farmers cooperatives, associations, and/or organizations: Provided, finally, That the first two (2) years of the fund allocation for paragraphs (3) and (4) shall be utilized in strengthening the physical make-up of the nucleus farms and in the procurement of breeder/stock animals;

(b) Seven percent (7%) to be divided equally between the PCC (3.5%) and the NDA (3.5%) for herd build-up in accordance with their additional budget allocations: Provided, That the allocation herein shall be disbursed according to the following schedule:

(1) Seventy percent (70%) for genetically improved dairy cattle and carabao repopulation/herd build-up; and

(2) Thirty percent (30%) for other concerns enumerated in this Act:

Provided, That the breeder/stock farm shall refer only to cooperatives or associations of at least fifteen (15) dairy farms, which have been in existence for at least two (2) years. They should have a counterpart contribution of at least a two (2)-hectare lot for said breeder/stock farm;

(c) Six percent (6%) for animal health and welfare, native animal development programs, disease control, prevention and response, including protective surveillance, pest and disease emergency response, and conduct research and technology advancement programs.

The fund shall be distributed as follows:

(1) Three percent (3%) for the BAI-National Development Centers;

(2) Two percent (2%) for vaccines and biologics production research and development initiatives and vaccine stockpiling; and

(3) One percent (1%) for the establishment and maintenance of the AMIS;

(d) Nine percent (9%) for the Capacity Recovery Fund (CRF) to be allocated to the BAI as the lead agency in the Animal Emergency Response Task Force (AERTF). It shall be utilized as a supplementary fund to the Quick Response Fund (QRF) of the DA, the National Disaster Risk Reduction and Management Funds under Republic Act No. 10121 or the "Philippine Disaster Risk Reduction and Management Act of 2010", or other government sources. LGUs may also augment the CRF using their local funds. Unexpended CRF shall remain on standby and shall not be reverted to the general fund.

The CRF shall be managed by the BAI Administrator. It shall be the source of actual cash assistance to livestock, poultry, and dairy (LPD) farmers who have become affected, with necessary proof, by animal disease outbreaks as declared by the national or local government authority. The qualification of recipients and the mechanism by which cash assistance shall be handed out shall be drawn by the BAI Administrator in consultation with the LPD associations or organizations: Provided, That the actual channel by which cash is to be given out shall be through the Development Bank of the Philippine (DBP);

(e) Fourteen percent (14%) to Philippine Center for Postharvest Development and Mechanization (PhilMech) for building or improving shared service facilities such as primary processing facilities like slaughterhouses, poultry dressing plants, facilities for the collection of dairy milk, and meat processing and storage. This component shall also include dairy logistics, cold chain development, distribution of equipment for developing of biosecure facilities with appropriate equipment for LPD production. These facilities shall serve the needs of small-hold raisers, cooperatives, or organizations: Provided, That the allocation and disbursement of funds shall be in accordance with the following schedule:

(1) Hogs subsector - at thirty percent (30%);

(2) Dairy subsector - at thirty percent (30%);

(3) Poultry subsector - at ten percent (10%); and

(4) Other animals - at thirty percent (30%);

(f) Fourteen percent (14%) for developing and augmenting food safety, animal extension support, and training services.

The fund shall be distributed as follows:

(1) Five percent (5%) to the BAI;

(2) Two and five tenth percent (2.5%) to the NDA;

(3) Two and five tenths percent (2.5%) to the PCC;

(4) Three percent (3%) to Agricultural Training Institute (ATI) of which 0.5% goes to International Training Center on Pig Husbandry (ITCPH); and

(5) One percent (1%) to PHilMech:

Provided, That all initiatives shall be in cooperation with ATI to delineate efforts avoiding overlaps and duplication, as well as to ensure its alignment with the NAIDP;

(g) Five percent (5%) to be equally divided between the BAI, NDA, and the PCC for the development and propagation of animal and poultry feeds, forage, and fodder, particularly by providing seeds and planting materials, and ensuring easy and affordable access to small-hold farms. They shall establish model forage farms in their existing research and development (R&D) centers nationwide, and develop forage and feed consolidation models in partnership with cooperatives;

(h) Fifteen percent (15%) to the BAI for credit to the animal industry sector, to be made available in the form of credit facility, interest subsidies including negative interest loans in the case of calamities, and credit guarantees for the improvement of breeders and stocks through the purchase of breeders, growers, multipliers, feeds, genetically improved stocks, establishment of animal housing, and purchase of equipment for livestock, poultry, and dairy farms, with the least of interest rates and documentary requirements: Provided, That such credit instruments shall be made available through the Land Bank of the Philippines and DBP, at the direction of the BAI;

(i) One percent (1%) to DA-Agribusiness and Marketing Assistance Service (DA-AMAS) for marketing and trade promotion activities, and price analytics such as updating of cost structure, supply value chain analysis, sensitivity analysis, and price analysis benefitting the livestock, poultry and dairy raisers;

(j) Two percent (2%) to be divided between the BAI (1%) and PCC (1%) for farm school-based and/or industry-driven R&D programs, as well as technology transfer and commercialization programs and projects; and

(k) One percent (1%) to the DA for the accreditation of small-hold livestock raisers into formal groups such as cooperatives or organizations:

Provided, That the DA Secretary may reallocate unexpended funds from any item from the previous year in accordance with the programs enumerated in this section and towards the capitalization of the NDA: Provided, further, That each agency in the above allocation of funds shall annually report on their accomplishment to the Congressional Oversight Committee on Agricultural Fisheries Modernization (COCAFM).