Central Luzon State University

College of Engineering
DEPARTMENT OF AGRICULTURAL AND BIOSYSTEMS ENGINEERING
Science City of Muñoz, Nueva Ecija 3120

AM 780 – AGRICULTURAL MECHANIZATION AND

MACHINERY MANAGEMENT

ASSIGNMENT NO. 1

REVIEW OF AGRICULTURAL MECHANIZATION LAWS, POLICIES

AND PROGRAMS IN THE PHILIPPINES

Submitted by:
LARRY S. OLIPAS/ MSAEn 1

Submitted to:
ROMEO B. GAVINO, Ph.D.
Professor

January 2020
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AE 780 – AGRICULTURAL MECHANIZATION AND

MACHINERY MANAGEMENT

ASSIGNMENT NO. 1

REVIEW OF AGRICULTURAL MECHANIZATION LAWS, POLICIES

AND PROGRAMS IN THE PHILIPPINES

Introduction
The RA 10601 otherwise known as “The Agricultural and Fisheries Mechanization (AFMech) Law”
was enacted on June 5, 2013 under the (Senate Bill Number) S. No. 3338 and (House Bill Number) H. No.
6548, it is then passed by the Senate and the House of Representatives on February 4, 2013. The Law was
signed by then President of the Republic of the Philippines, Benigno S. Aquino III which begun year 2012
on the 23rd day of July.
In the Philippines, the Department of Agriculture (DA) was mandated by the Agricultural and
Fisheries Modernization Act (AFMA) of 1997 to give priority to the development and promotion of
appropriate agricultural machinery and other agricultural mechanization technologies, to enhance
agricultural mechanization in the countryside (Aquino et al., 2013).
Farm mechanization can enhance the efficiency of both land and labor, inputs that are vital in
sustaining food production and increasing farm income. However, despite the various innovations in
mechanization technologies in the Philippines, the country lagged behind other Asian countries in terms
of mechanical power at 1.68 hp/ha (Amongo, 2011). In 2009, PCAARRD (formerly Philippine Council for
Agriculture, Forestry and Natural Resources Research and Development or PCARRD) reported that the
different farming activities of selected crops were predominantly operated at low mechanization level
(Aquino et al., 2013).

Salient features of the RA 10601 (AFMech Law)

Coverage of the Law
The scope of this act covers the research, development and extensions, promotion, distribution,
supply, assembling, manufacturing, regulation, use, operation, maintenance and project implementation
of agricultural and fisheries machinery and equipment in the country. Whereas, the Department of
Agriculture (DA) should formulate a National Agri-Fishery Mechanization Program (NAFMP) that will
promote and support research grants, credits, transparent and predicable regulation, the local
development and manufacture of agricultural and fisheries machinery by the private sector.

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Establish quality, safety and performance standards and testing centers for various agricultural
and fishery machinery. Formulate guidelines and policies for registration of ownership and its promotion
for better adoption of such certified agricultural and fisheries machinery for improving agriculture and
fishery productivity.

Implementing and Support Agencies

The DA, through the Philippine Center for Post-Harvest Development and Mechanization
(PhilMech) as its focal agency to act as secretariat, chaired by its director should lead the integration and
unification of all agricultural and fisheries mechanization RDE programs and projects of all the national
government agencies, LGUs and SUCs which will catalyze development of machineries and equipment,
job generation, address market and industry demands and help accelerate the agricultural and fishery
modernization in the countryside together with a network of Agri-Fishery Mechanization RDE which also
composed of research and educational institutions , LGUs , NGOs, associations of agri-fishery machinery
assemblers, manufacturer and distributors, agricultural engineers, farmers and fisherfolk with the
University of the Philippines Los Baños to lead and coordinate, agri-fishery mechanization RDE programs
of all academic institutions in the country. And to enhance research and technological development on
agri-fishery mechanization, the government should provide competitive research grants through the
Bureau of Agricultural Research (BAR) of the DA, DOST and CHED as well as institutional development,
upgrading laboratories, facilities and equipment.
The DA, with SUCs and private sector, shall train the agricultural extension workers and
agricultural engineers of the LGUs who in turn will train the farmers and fisherfolk on agricultural and
fisheries mechanization, technologies and practices.
The DOLE and TESDA will be responsible in training the technicians and operators of the
machineries. With the TESDA, in collaboration with the DA, BoAE and national association of agricultural
engineers and assemblers, manufacturers and distributors, who will undertake skills certification and
accreditation system for agricultural machinery operators and technicians.
Scholarships for graduate and undergraduate degrees on agricultural engineering and
trade/vocational courses on agricultural and fisheries mechanization will be given priority by the DA, CHED
and DOST.

Aspirations of the Law

There will be a provision that will encourage and promotes locally-made engines and other
machinery for agricultural and fishery industry. Whereas, registered businesses engaged in local

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manufacturing, fabrication and assembly of agri-fishery machinery and equipment will be eligible for loans
under the Agricultural Competitiveness Enhancement Fund (ACEF) pursuant to Art. 39 E.O. No. 226.
There must be an agricultural engineering division/section of the agriculture office of the LGUs
organized under the E.O. 86 s.1999 and Sec .46 of RA 8435, whereas the latter will serve with planning,
coordinating regulating and implementing bodies on agricultural and fisheries engineering, mechanization
and infrastructure programs and projects.
The DA and DAR must carry out contiguous farming projects that will affect sustainable field sizes
and shapes conducive to efficient operation of agricultural machinery. Promoting land clustering with a
minimum of 50 hectares for synchronize farming from land preparation to harvest and latter promoting
cooperatives and association among farmers.
The government will prioritize clustered farm land identified as key agricultural and fishery
production areas to accelerate modernization in the countryside, this includes irrigation, FMR,
postharvest, power and communication facilities.

Fine and Prohibited Acts under Law

Violations on any of the law’s provisions, upon conviction be subjected to a fine of not less than
Php 1000.00 but not more than Php 10,000.00 or imprisonment of not less than 2 months but not more
than 1 year, or both, upon the discretion of the court and /or other applicable penalties imposed under
RA 7394 (Consumer Act of the Philippines) and when your purchase is found uncertified and or
substandard the liable will face charges under RA 3019 (Anti-graft and corrupt practices act).

The acts include among others:

1. selling, mortgaging and leasing of agricultural and fishery machinery without being registered with
the BAFE;
2. the selling of agricultural and fishery machinery without warranty or aftersales service;
3. claiming of ownership to an agricultural and fishery machinery that has not been properly
registered in his or her name; and
4. operating a testing center without proper accreditation.

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PAST AND PRESENT AGRICULTURAL MECHANIZATION

LAWS AND POLICIES IN THE PHILIPPINES

1. . Republic Act No. 3927 "Philippine Agricultural Engineering Law”

The law established agricultural engineering as a profession which consists in the application of
the fundamental and known principles of mechanical, civil and electrical engineering to the peculiar
conditions and requirements of agriculture as an industry and as a field of science. The practice of
agricultural engineering shall embrace the following activities:

• farm power and machinery

• farm buildings and structures
• farm electrification and farm processing,
• soil and water conservation which includes farm irrigation and drainage, land clearing, flood
control, soil erosion control and related problems, and
• education and research.

2. Republic Act No. 8559 "Philippine Agricultural Engineering Act of 1998."

The Law espouses the delivery of basic and technical services to accelerate agricultural
mechanization through adequate agricultural modernization through adequate and well-trained
professional agricultural engineers.

3. Republic Act No. 10915 “Philippine Agricultural and Biosystems Engineering Act of 2014”

The senate bill seeks to repeal Republic Act No. 8559, which currently governs the practice of
agricultural engineering in the country, and to strengthen its practice into agricultural and biosystems
engineering. The bill also aims to improve the different areas of practice of our agricultural engineers
through Career Progression and Specialization; and to mainstream the agricultural and biosystems
engineers in agro-industrial development, food security, bio-energy and environmental protection
program through proper recognition, appropriate positions and greater professional responsibilities. The
move is to further help professionalize the Philippine agricultural and environmental bureaucracy, and
improve the productivity and efficiency in farm operations. Other specific features of the current bill
include:
• Development and updating of the education curriculum of the agricultural and biosystems
engineering;
• examination, registration of licensure of the practitioners;
• development of the professional competence of the practitioners through continuing professional
education;

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• accreditation of an integrated national professional organization; and

• prohibition of foreign agriculture and biosystems engineer to be issued a temporary license to
practice the agricultural and biosystems engineering profession unless his/her country of origin
permits Filipino agricultural and biosystems engineers to practice within its territorial limits.

4. Republic Act 8435 “Agriculture and Fisheries Modernization Act of 1997”

The law prescribed urgent measures to modernize the agriculture and fisheries sectors of the
country to enhance their profitability, and prepare Agriculture and Fisheries sectors for the challenges of
the globalization through an adequate, focused and rational delivery of necessary support services. The
support services for the implementation of the law include:
• Information and Marketing Support Services;
• Production and Marketing Support Services;
• Credit;
• Irrigation;
• Other infrastructures including public and private such as fish ports, sea ports and airports, farm
to market roads, common infrastructures, water supply system, research and technology
infrastructures, research and technology facilities, public markets, abattoirs, and agricultural
machinery.

AFMA upholds the equitable distribution of opportunities, income a pad wealth, sustained supply
of the nation’s goods and services for the benefit of the people; and an increasing production performance
as an important factor in improving the quality of life for all, especially the underprivileged.
AFMA aims to promote industrialization through agricultural development the development of
industries that make efficient use of human and natural resources. for development All sectors of the
economy (including private enterprises, corporations, cooperatives and other collective organizations)
shall be given opportunities for improvement and enjoy the benefits of development. The law
promulgates the development and sustainability of the agricultural and fisheries sectors in accordance
with the following principles of:
1. poverty alleviation and social equity;
2. food security;
3. rational use of resources;
4. global competitiveness;
5. sustainable development;
6. people empowerment; and
7. protection from unfair competition.
AFMA provided the boost for agricultural mechanization development and promotion in the
country. Then several other policies followed through (PCARRD-DOST, 2009).

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5. Republic Act No. 6657

An act instituting a comprehensive agrarian reform program (CARP) to promote social justice and
industrialization, providing the mechanism for its implementation, and for other purposes June 10, 1988.
One of its major programs of CARP is the Land Tenure Improvement that aims to hasten distribution of
lands to landless farmers.
The government will provide support services to beneficiaries, including infrastructure facilities,
marketing assistance program, credit assistance program, and technical support programs. Section 39 of
the law on land consolidation stated that “The DAR shall carry out land consolidation projects to promote
equal distribution of landholdings, to provide the needed infrastructures in agriculture, and to conserve
soil fertility and prevent erosion”.
6. Republic Act No. 7607 (Magna Carta for Small Farmers)
Ensures the provision of farm machineries to small farmers
7. Republic Act No. 7150 (Local Government Code)
Mechanization services and facilities are among the agricultural support services that will be provided by
the LGUs.
8. Republic Act No. 7900 (High Value Commercial Crops Law)
Farm Machinery is part of the post harvest facilities which will be provided by the Department of
Agriculture as incentives to the program beneficiaries.
a. Executive Order No. 129-A
Modifying Executive Order No. 129 Reorganizing and Strengthening the Department of Agrarian
Reform and for other Purposes

I. In Section 4 on Mandate - the Department shall be responsible for implementing the Comprehensive
Agrarian Reform Program and, for such purpose, it is authorized to Undertake land consolidation, land
reclamation, land forming, and conservation in areas subject to agrarian reform.

II. In Section 20, the Bureau of Land Development was created to absorb the relevant functions of the
Bureau of Land Acquisition, Distribution and Development. The Bureau shall be responsible for the
development of policies, plans and programs, and for providing technical assistance, relative to land
surveys, land use, capability and classification, engineering services, and land consolidation.

III. In Sec. 26, the DAR shall have as many Municipal Agrarian Reform Offices as may be necessary in
promoting efficiency and effectiveness in the delivery of its services, which shall be headed by a Municipal
Agrarian Reform Officer. Among other the MAR Office shall:

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• Implement policies and programs on land acquisition and distribution and transfer of landowners
to actual tillers, including identification of farms, landowners, and beneficiaries, leasehold
arrangements, land valuation, landowner’s compensation and transfer actions as determined in
accordance with law;
• Organize/establish compact farms, land consolidation, integrated farm system, sloping
agricultural land technology and other cooperative-cultivatorship schemes;
b. Letter of Instructions No. 253 of Pres. Marcos dated Feb 19, 1975
The following statements related to land consolidation were stipulated in the letter of instruction
addressed to the Secretary of Agrarian Reform; Chairman, Board of Trustees, Land Bank of the Philippines;
and President, Land Bank of the Philippines:

• Nueva Ecija, has been designated since 1972 as a pilot province for land reform integrated
development program with emphasis on land tenure improvement, institutional development,
physical development, and agricultural development;
• As a part of this integrated approach to land reform, barrio General Ricarte of Llanera, Nueva
Ecija, has also been chosen as the site for a pilot agricultural cooperative settlement;
• The implementation of the agricultural cooperative settlement will not only translate into reality
the integrated approach to agrarian reform but will also substantially increase the farm family's
income;
• Then President F.E. Marcos ordered the Secretary of Agrarian Reform to carry out a land
consolidation scheme within the project area and allocate the farm lots as well as the home lots
in accordance with the integrated development plan for this pilot projects;
c. Letter of Instructions No. 370 of Pres. Marcos dated Feb 3, 1976
The subject matter was the order to the Land Bank for the acquisition of the Jacinto Estate in
Nueva Ecija; and the Department of Agrarian Reform to undertake land consolidation thereat.

d. Letter of Instructions No. 650 of Pres. Marcos dated Jan 5, 1978

In the Letter of instruction addressed to the Secretary of Agrarian Reform, Chairman, Board of Directors,
Land Bank of the Philippines President, Land Bank of the Philippines, the following statements related to
land consolidation were stipulated:

• the establishment of pilot land consolidation projects under the Agrarian Reform Program in the
provinces of Nueva Ecija, Pampanga, Camarines Sur and Pangasinan, has transformed self-reliant
and economically and socially stable farmers, and has brought about maximum land utilization

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and development, and increased farm production, through multiple cropping and crop
sequencing, and farm income through cooperative endeavors;
• The setting up of such land consolidation projects needs the attention and encouragement of the
government; and
• The acquisition of the 638-hectare property of landowner Emerito M. Ramos in Arayat and
Candaba, Pampanga, is necessary in order to put up a modern land consolidation project in the
province similar to that of the General Ricarte cooperative settlement in Llanera, Nueva Ecija.
e. House Bill No. 3989 (An Act Promoting and Developing Agricultural and Fisheries
Mechanization in the Philippines)
Endorsed by selected members of the House of Representatives. The Bill seek to promote the
development and adoption of modern, appropriate, cost-effective, and environmentally safe agricultural
and fishery machinery and equipment.
These policy advocacies from the government if well implemented could help attain a modernized
agriculture through mechanization. Moreover, the following policy recommendations are also important
for consideration by policy makers both at the national and local level:
• Availability of credit to purchase agricultural machinery from credit institutions that provide low
interest rates and easy requirements for loan processing and loan amortization;
• Provision of alternative business enterprise by establishing farm machinery repair and service
outlets, and farm machinery rental centers;
• Establishment of cooperative buying centers in villages equipped with storage and marketing
facilities;
• Consolidation of small farms for effective and economical implementation of mechanization
technologies;
• Support to small- to large-scale local manufacturers to encourage local manufacturing of
machineries;
• Intellectual property rights on R&D outputs and support in patenting inventions; and
• Expansion of value -adding activities to generate jobs in both rural and urban centers (PCARRD-
DOST, 2009).

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References

Amongo, R.M.C., Amongo, L.D. and Larona M.V.L. (2011). Mechanizing Philippine Agriculture for Food Su
fficiency. Paper presented during the UNAPCAEM and FAO Joint Roundtable Meeting on Sustain
able Agricultural Mechanization in Asia. Bangkok, Thailand, December 8‐9, 2011
Albert P. Aquno, A. B. (2013). Republic Act 10601: Improving the Agriculture and Fisheries Sector through
Mechanization. Quezon City.

Implementing Rules and Regulations for RA 10601 Otherwise Known as the "Agricultural And Fisheries
Modernization Law". (2013). Department of Agriculture, (pp. 1-44). Quezon City.

PCARRD-DOST. (2009). Agricultural Mechanization in the Philippines First Edition Series No. 179. Los
Baños, Laguna: Philippine Council for Agriculture, Forestry and Natural Resources Research and
Development.

Republic Act No. 3927. Philippine Agricultural Engineering Law of 1964

Republic Act No. 8559. Philippine Agricultural Engineering Act of 1998

Republic Act No. 10915. Philippine Agricultural and Biosystems Engineering Act of 2016

Republic Act No. 8435. Agriculture And Fishery Moderniztion Act of 1997

Republic Act No. 6657. Comprehensive Agrarian Reform Program

Republic Act No. 7607. Magna Carta for Small Farmers

Republic Act No. 7150. Local Government Code

Republic Act No. 7900. High Value Commercial Crops Law

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