Makatutulong ba sa ating agrikultura ang New Agrarian Emancipation Act? Ano ang kailangan para magtagumpay ito?
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00:00 [Music]
00:09 Good day, I am Rosan Dela Cruz and this is Reforma.
00:14 In our program, we will focus on the institutions and agencies in the three branches of the government.
00:20 Are they running properly or do they need to be changed to make their services better to the Filipinos?
00:28 In our episode this week, we will talk about the New Agrarian Emancipation Act.
00:35 Under the new law, the payment of loans to farmers for their land will be exempted
00:42 under the government's agrarian reform program.
00:45 This means that they will no longer have to pay 30-year annual installments for the land given to them.
00:52 To discuss this, we will talk to the Chairman of the Board of the Federation of Free Farmers, Mr. Leonardo Montemayor
01:00 and Agrarian Reform Undersecretary Luis Pangulayan.
01:04 Good day to you, sirs.
01:06 Good morning, Rosan and to all the listeners of Reforma and to the whole country. Good morning again.
01:11 Good day to you too, Rosan and to all those who are watching our program.
01:16 Jose, we will start with our first question. What is this New Agrarian Emancipation Act?
01:23 This is Republic Act 11953. This law was passed by the Congress and our President.
01:34 The President signed it last Friday, July 7 of this year.
01:40 This will be implemented under the Constitution of our President in his first statement, in the first zone of July 2022,
01:49 that the Congress will pass a law that will exempt the loan of farmers.
01:53 As you know, under our agrarian reform program, under RA 6657 as amended,
01:59 the land is given to the farmers and the farmers' workers,
02:04 but the land that is given under the comprehensive agrarian reform program will be paid by the farmers.
02:13 It is stated in Section 26 of RA 6657 as amended, that the land is paid by each agrarian reform beneficiary.
02:22 For the last 30 years, the land has a 6 percent interest.
02:27 This was removed by the President under the Congress' order to be fair to the agrarian reform program.
02:34 This is social justice, giving land to the landless.
02:38 Our President approved the removal of the heavy debt so that the farmers can use their money for their agricultural activity.
02:51 I hope this will be profitable and they can have productivity and rural development and live a good life.
02:59 But the President is saying that this will be due to support services and facilities that will be given to farmers to pay off their debts.
03:14 The government allocated P57 billion to pay off the debt of P600,000 farmers.
03:25 This is included in the Voluntary Land Transfer and Direct Payment Scheme.
03:29 P10,000 farmers will be paid P200 million to the landowners.
03:35 All in, P57 billion for 600,000 ARBs.
03:41 The debt will be paid off. The farmers will have no debt and the mortgage annotation will be removed from their titles.
03:48 From now on, our agrarian reform beneficiaries don't need to pay anything.
03:54 Their principal debt has been forgiven.
03:58 Even the charges, if they didn't pay on time, there are single charges, that was forgotten by our government.
04:06 It's a big thing because in our estimate, there are about 610,000 beneficiaries who will benefit.
04:17 The land they will be paying off is almost 1.2 million hectares, the whole Philippines.
04:24 For every beneficiary, on the average, you will not pay P94,000.
04:32 What is the government expecting from this, aside from what you said, what is the government expecting from this law?
04:42 First of all, the fact that, as you said, the farmers will not think about how they will find funds to pay their land amortization.
04:56 Where they will pay on the average P94,000, they will be deducted from their farming requirements.
05:06 At least, as long as there is money saved, it can be used for farming, buying rice and other things.
05:20 Second, because they don't have debts, they can now put the title of the land in the name of the farmers.
05:32 If a farmer has a clean title, it's easier to approach lending institutions and banks to apply for a loan.
05:42 They will use their title as collateral against the loan.
05:48 Another thing, automatically under the new law, our Agri-reform beneficiaries will be registered in the so-called Registry System for Basic Sectors in Agriculture, RSBSA.
06:06 Under that registration, there are grants that will be applied.
06:13 There are financial assistance, free crop insurance coverage and others.
06:24 Lastly, not only will our farmers be given a clean title, there will be a greater assurance through the Department of Agri-reform, in particular DAR,
06:38 that support services will be provided to our farmers, such as water, farm to market roads and other assistance coming from our government.
06:50 Maybe our government is avoiding to dole out the land and you have no responsibility to the Agri-reform beneficiary to return or pay the land value.
07:07 But unfortunately, since the various laws that I mentioned earlier took effect, I saw that our farmers are having a hard time with amortization for various legitimate reasons.
07:24 For one thing, in a number of cases, the government's assistance is still insufficient and there are calamities.
07:34 So our farmers' debts are increasing.
07:37 Their debts to the bank and their debt to land amortization, our farmers can't afford it.
07:47 By this time, our government realized that it's practically impossible to collect from the farmers.
07:54 In the meantime, since they were unable to complete their payment, they are having a hard time to borrow from the bank for their production and other requirements for their land.
08:04 So it was felt that it was time already to end the greediness of the government for the hardship of our farmers.
08:16 That's why our president approved this new law.
08:22 Usec, I would just like to ask, those who already paid their debts before the new law was passed, before the moratorium,
08:31 they seem to be in a good state. But will they be given priority in the credit and support services? What are the terms here?
08:40 Yes. It's like this. Those who already paid their agrarian reform debt, their land payment, they will be given priority in the credit facilities and support services.
09:02 This means that the land bank, the Department of Agriculture, the Department of Agrarian Reform and other CARP implementing agencies,
09:11 will be given special packages for their payments.
09:14 Even if it's for lending or receiving facilities or equipment, they will be given priority because they are the first to pay.
09:22 This measure of the government was started during the Bayanihan Law 2.
09:30 Because of Bayanihan Law 2, all the interests of farmers were transferred to the principal.
09:35 Those who already paid, those who have completed their land payment, those payments, as stated in Bayanihan Law 2,
09:45 were given priority in support services and credit facilities.
09:50 Specifically, the support services and credit facilities are coming from the Land Bank of the Philippines, the Department of Agriculture.
09:58 Because of their registry of basic sectors in agriculture, it has all the agrarian reform beneficiaries as per RA 11953, the new law.
10:09 That is spelled out in the new programs that will be launched by the land bank.
10:15 The land bank said that they are in the signing of the law by our beloved President.
10:20 They will support and create new programs for the new law.
10:26 Specifically, the priority schedule and priority program that will be given to ARBs who already paid.
10:33 ARBs who already paid, they already have their land, they already removed their mortgages from their land.
10:39 They will give them a chance to use their land to get loans for their agricultural activities.
10:50 I understand that the government will lose P57 billion with this new law.
10:59 But of course, the ARBs will not pay the loans, the beneficiaries, our farmers.
11:08 Will this be lost to the government? What will be the effect on the government?
11:13 Will this be replaced by something from the government?
11:19 Yes. It will have no effect on the government, fiscal stability of the government, and the revenue generation schedule of the government.
11:32 First, this was studied well when the law was passed and we consulted the Department of Finance on this.
11:40 The Department of Finance mentioned by the finance secretary, Benjamin Diokno, that the receivables of the payments of the beneficiaries for their awarded lands
11:55 will not be included in the revenue generation schedule.
12:00 Number one, it was never included because it's a social justice program and it was never treated by the government as a revenue generation activity.
12:09 There are studies that show that the expenses of the collection and administration of these loans will be higher.
12:21 Because from now on, we will not monitor the ARBs who were awarded land in their payment schedule,
12:29 if they are updated, if they are not paying, what should they do to remind them to pay.
12:35 The record keeping is that many are being spent to talk about the revenue of the collection of the installment,
12:45 the 30-year annual installment plus 6 percent interest per annum.
12:49 This is in the whole Philippines. All the activities that need to be monitored and talked about will be removed, all the expenses.
13:00 Third, this will reduce the revenue and we will experience it gradually.
13:08 This is included in a six or ten-year program that the Department of Finance will implement through implementing rules and regulations.
13:19 Because the park, the Presidential Grand Reform Council Executive Committee, including the DAR and the land bank,
13:28 was ordered to form implementing rules and regulations.
13:32 In detail, it will be explained and that's the plan. It's not a one-shot, one-time big-time deduction for our wealth, the Php57 billion.
13:43 This is included in a six or ten-year program. It depends on the rules and regulations of the Department of Finance and the Presidential Grand Reform Council
13:54 that should be followed by our beloved President and our beloved colleague, Col. M. S. Chelya III.
14:01 Is this new law a big help in establishing food security in the country?
14:07 So will this help to reduce the price of buying agricultural products in the market?
14:18 Yes. This will help in food security and in reducing production costs.
14:26 As you know, one of the things that increases production costs, we have many challenges, is the need to get fat from seeds, seedlings and pesticides.
14:42 Usually, farmers are loaned this from the suppliers of seeds, fertilizer and medicine. Farmers are being loaned land to spend on these things.
14:59 But that's not enough. It's clear that the loan is not enough.
15:03 President Marcos and his colleague, Col. S. Chelya III, also made it clear that credit facilities and support services should be included.
15:16 If we include the fact that the farmers were removed from their loans, the heavy payment of loans, and you added support services and credit facilities,
15:27 the cost will be reduced because we will not be close to the loans. The interest on loans to get medicine, fat and seeds will be reduced.
15:41 In addition, it will be transferred to other activities to ensure a good income.
15:46 Of course, the removal of traders or middlemen is not separate from this. This is with the help of the Department of Agriculture.
15:56 The Department of Agriculture is working on various activities to direct the farmers to sell to the market.
16:04 CARP implementing agencies will help. Aside from DART, the Department of Agriculture and the Department of Trade and Industry is also there.
16:13 They have their own agrarian reform program division and other agencies, like TESDA and DepEd.
16:21 We can help the farmers from cultivation, planting, harvesting, until the market is removed,
16:33 the farmers will do it, the cooperative of agrarian reform beneficiaries.
16:37 In that way, the cost will be reduced. The overall effect of that will contribute to food security because the harvest will be better and the harvest will reach the needs of the people and communities.
16:55 We will have food security if the harvest is sufficient and this harvest can be used for the welfare of the farmers and the farmers will use it when they need it.
17:08 It's available in the market and they can buy it. There will be a chain reaction of events with the help of various agencies to have food security.
17:18 It's very critical to reduce the debt as one major step in the totality of government's efforts to have productivity, agricultural productivity, profitability and food security.
17:35 It can be seen as an investment in our beneficiaries. The government did not collect it, the farmers will use it in order to maximize their efforts at improving food production.
17:51 For example, if the food production is good, rice, corn and other products, it will all be profitable because it will result in more assured supply of these food items.
18:09 Hopefully, the price will also be lowered and the inflation rate will be lower. The government will also pay less to the debts because if the inflation increases, we will be affected.
18:24 Foreign debt servicing, etc. So everything will benefit from what our president and congress did.
18:32 The implementing rules are important. We hope that just like the implementation of the law, in particular, the Department of Agri-Reform and other implementing agencies,
18:46 for example, Land Bank, Department of Finance and others, will support the various farmer groups, like our group FFF, to have a better implementing rules.
19:05 Another thing, we need to face the issue of KWAN. Some might say that if our farmer is an owner, he can hold the title,
19:20 but others might not be convinced that if there are real estate development investors, they will convince them to sell the land because they are full owners.
19:36 So there might be a wide land conversions. If that happens, our food security goals will be affected.
19:49 There is also a danger of indiscriminate land conversions that will affect our agricultural development.
20:01 We should monitor that. Although, there is a provision in the existing law that if you are given land, within a 10-year period, it is prohibited to sell it.
20:14 But even if it's in the law, we know that there are many cases of illegal transactions. So we should monitor that.
20:23 This is where the provision of support services by government will be critical for the farmer to maintain and improve his farming.
20:33 So the issue of illegal conversions and sale of title agricultural lands will be an important challenge that we should face in the coming times.
20:50 That is good news. Sir Montemayor, do you think this is one of the reasons for the Philippines to become a prosperous agricultural country?
21:00 That is the hope. Of course, this new law will give additional resources and motivation to improve our agriculture and food security programs.
21:17 Also sir, we know the hardships that our farmers are going through which makes them want to quit farming, to quit the life in agriculture.
21:27 But do you think that this new law is a good excuse for the new generation to pursue agriculture, to pursue farming, especially those who want to venture into this industry?
21:39 I think it will. It will help motivate the younger generation to continue with farming.
21:52 But there is one thing to add to the challenges that we discussed earlier. We need to review certain existing laws and programs that hamper the growth of agriculture in our country.
22:11 In the case of rice, it's time that we review the so-called rice tariffication law, RTL. This was passed in 2019.
22:22 Under the law, there was a total liberalization. The increase of rice has been expanded.
22:35 So the private sector, any time, any quantity that they want to import, they can import.
22:46 That has a negative effect on our farmers, especially when it comes to harvest.
22:55 Because if a large quantity of rice enters, for example in Vietnam, and it's cheap, it will affect the prices of local rice produced by farmers.
23:09 That will discourage them. Even if they became older, if their rice prices dropped because of the low import of imported rice, it will affect their desire to continue with their farming work.
23:28 I hope that will be reviewed and at the very least, some changes or amendments to the law. That's one important thing that the country should consider.
23:39 Sir Leonie, are there still lands that need to be under agrarian reform?
23:46 That's a very important question Roseanne. I was about to add that. When President Duterte came to power, they left some,
23:59 and the Department of Agrarian Reform, we estimate between 600,000 to 700,000 hectares of private agricultural lands that are supposed to be under agrarian reform program.
24:16 However, they were not included, especially the so-called notices of coverage. Some of these lands were not issued with the so-called coverage by the DAR.
24:32 Others were issued with notices, but not all of them were distributed. This was inherited by President Bongbong.
24:46 I noticed that President Bongbong and Secretary Conrado Estrella III were quiet about this. We would like to remind them that while we are celebrating
25:04 and we are thankful for the passage of the new Agrarian Emancipation Act, don't forget about the 600,000 to 700,000 hectares that need to be divided because it is a mandate of our legal system.
25:22 So whether it is necessary to pass a new law to extend the period of distribution or not, this should be considered.
25:37 How do you think our viewers can help with this new law? What will be the participation of the public in this new law?
25:48 In general, they should express their happiness and support for the Congress. I hope they can call for the continuation.
26:01 By the way, Rosanne, I forgot to mention, one important thing that should be addressed now is the Land Use Policy Act.
26:10 If you will recall, when President Bongbong was sworn in last year, July of last year, along with his priority bills that he announced,
26:23 this is the passage by the Congress of a land use law. Actually, this has been around for a long time.
26:35 I remember when I was a congressman back then, our farmers laughed way back in 1993, I filed a land use policy bill.
26:45 It passed the House, especially in the literature of Speaker de Venecia. Every term I served in Congress, it passed.
26:57 Unfortunately, in the Senate, it didn't pass on time. I understand, every year since then, it's the same.
27:05 Until now, the problem is the Senate. As far as I know also, the bill pending in the Senate is not yet in action.
27:15 There's a public hearing and nothing is happening yet.
27:18 I hope that if our senators will support President Bongbong's initiatives, they should approve this consideration and passage of the land use bill.
27:32 Sir Leone, from your end, in the Federation of Free Farmers, what are the pending initiatives and proposals of your government?
27:42 There are many, Rosa. We have proposals also to strengthen the government programs or drive against smuggling of agricultural products.
27:58 If smuggling doesn't stop, it will be a blow to our farmers because they will have competition for smuggled agricultural products,
28:10 like onions, sugar, rice, tobacco, because that will lower the price of their products because you add to the supply with smuggled goods.
28:22 Of course, the price of our farmers' products will drop. Our government doesn't have a collection of rice yet.
28:32 While if the rice, for example, the collection of rice is correct, the collection of taxes on important rice will go to a fund that will be returned to our rice farmers.
28:46 For farm machinery, subsidized rice, low-cost loans and training.
28:56 That's one of the areas that we are focusing on, how to help our government to minimize the agricultural smuggling.
29:07 Usec, last message to our farmers related to this new law.
29:17 To our beloved farmers and agrarian reform beneficiaries of the whole country, what's happening now is historic. This cannot be separated from the obvious help of farmers,
29:36 the people and the government to bring to life the true meaning of emancipation, the true meaning of agrarian reform on the land.
29:48 We have been fighting for 50 years for the emancipation of farmers.
29:58 First, remove the right of farmers to the land due to poverty. The first step is to own the land.
30:09 Second, remove the right of debt collection. Third, provide support services and credit facilities.
30:18 Fourth, we should have a new perspective that the survival of the farm is important for the future of the Filipino farmers and the Filipino people.
30:32 We should all help each other to give life to emancipation. It's not enough that President Marcos or the Prime Minister of Australia will help us.
30:43 We should all help each other. I remember when former President Marcos said that the key here is cooperatives,
30:55 to organize cooperatives. All in agriculture, the key is cooperatives. All who joined the program, all who joined the farming,
31:10 are the cooperatives. This is where the way of credit facilities and support services will be made.
31:16 The vision given to us by President Ferdinand Romualdez Marcos Jr. and Bongbong Marcos Jr. is that the agrarian reform program will continue,
31:29 but he will provide credit facilities and support services and give life to the true meaning of emancipation, which was started by PD27.
31:39 We are happy with RA11953 because it removed the emancipation agenda of PD27 and the current program through RA11953.
31:54 We are thankful to the President because he gave life to the vision of our colleague Conrado M. Estrella III.
32:03 Our President and our beloved colleague have not yet sat down, but they have already given life to their first priority,
32:10 which is the new agrarian emancipation. The President called it genuine agrarian reform.
32:16 All should help to make this a success. The help of farmers, the help of farmers' children, the help of the private sector,
32:27 the help of every agency under the leadership of Conrado M. Estrella III and under the leadership of President Ferdinand Romualdez Marcos Jr. Thank you.
32:39 What is your message to the farmers, sir Lloni?
32:45 It's important to our farmers to kiss each other's hands to strengthen our communities because there are many challenges and problems,
33:04 not just man-made, but also due to the time, the El Nino is already there. All of these are necessary.
33:16 If we will have a chance to overcome this problem, we need to unite all of us.
33:24 This is where our discussion on the hot issues affecting the public service of government institutions and agencies ends.
33:34 In the change for the future, let's push for reforms in the government. Thank you very much.
33:40 (Music)