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RA 929 Republic of the Philippine June25,2004 Traditionally, agriculture is seen as a low-tech industry with limited dynamics dominated by

numerous small family firms which are mostly focused on doing things better rather than doing
NEGROS ORIENTAL STATE UNIVERSITY new things. Over the last decade, this situation has changed dramatically due to economic
Bayawan- Sta. Catalina Campus, Bayawan City
liberalization, a reduced protection of agricultural markets, and a fast changing, more critical,
COLLEGE OF BUSINESS ADMINISTRATION society. Agricultural companies increasingly have to adapt to the vagaries of the market, changing
consumer habits, enhanced environmental regulations, new requirements for product quality,
chain management, food safety, sustainability, and so on. These changes have cleared the way for
MODULE 4 IN FUNDAMENTALS OF AGRICULTURAL ENTREPRENEURSHIP new entrants, innovation, and a lot more.
( AGECON 2 )
This modules will give you an overall views about the important of agriculture in our daily
FIRST SEMESTER, SY. 2020 – 2021
undertaking as well as give you a background about Agrarian Reforms and related laws that is very
helpful as a future agri-business owners.

COURSE LEARNING OUTCOMES

Upon the successful completion of this module, the students are expected to:

1. To embody, generate and share knowledge about Agrarian Reforms. 5.1


2. To introduce and evaluate understanding about the Agrarian laws and policies 6.4

CONTENT OF THE MODULE


This module contains the following topics:

Topic 1: Agrarian Reform background and its laws and policies.

Topic 2: Agricultural marketing and related laws.

DIRECTIONS ON HOW TO USE THE MODULE PROPERLY

This module contains two (2) topics. Each topic is explained substantively. Read the
NAMEOF
NAME OFSTUDENT:
STUDENT: explanations thoroughly so that you could understand the lesson fully.
On each lesson, you will find the specific learning outcomes (SLOs). SLOs are knowledge and
INSTRUCTORNAME:
INSTRUCTOR NAME:MR.
MR.ROGIE
ROGIER.R.LAJOT
LAJOT skills you are expected to acquire at the end of the lesson. Read them heartily.
You must answer the Learning Activities/Exercises (LAEs). The LAEs are designed to help you
PHONENUMBER:
NUMBER:09066850060
09066850060 acquire the SLOs.
PHONE
Feel free to chat, call, text or send an email message to me if you have questions, reactions,
or reflections about the contents or activities in the module.
EMAILADDRESS:
EMAIL ADDRESS:rogielajot2019@gmail.com
rogielajot2019@gmail.com
The Practice Task/Assessment and Assignment shall be checked by me.
INTRODUCTION
SPECIFIC LEARNING OUTCOMES Scope of CARP & Program Implementation

After completing this module, you will be able to: General:

1. To define common terminologies are used in the lesson and articulate understanding about All public and private agricultural lands, including other lands of public domain suitable to
the importance of agriculture in our daily undertaking. agriculture;
2. To be able to gain knowledge about Agrarian Reform and its laws and policies that is very Landholdings of landowners with a total area of give (5) hectares and below are not covered
helpful as a future farm business owners. by the acquisition and distribution of qualified beneficiaries.
All agricultural lands including public lands: those devoted principally to the raising of crops
Lesson 1: AGRARIAN REFORM background and its laws and policies such as rice, sugarcane, tobacco, coconuts, or to pasturing dairying inland fishery and other
agricultural uses.

Land reform policies have been in the political agenda in the country since the Commonwealth In particular:
period. In fact, the Philippine Agrarian Reform Program is one of the longest-running programs of its
kind anywhere in the world. It is also the widest in terms of coverage, affecting more than a quarter All alienable and disposable lands of the public domain devoted to or suitable for agriculture.
of the entire 30 million-hectare land area of the Philippines. Land reform is indispensable in a No reclassification of forest or mineral lands to agricultural land shall be undertaken until
Congress shall have determined by the law, specific limits of the public domain.
country with a skewed landownership distribution in favor of the elite members of the society,
All land of the public domain in excess of the specific limits as determined by Congress taking
resulting to a grossly inequitable distribution of wealth in the countryside and hampering rural into account ecological development and equity considerations.
development and industrialization. All other lands owned by the government devoted to or suitable for agriculture.
All private lands devoted to or suitable for agriculture regardless of the agricultural products
raised or that can be raised thereon.
REPUBLIC ACT NO. 9700 ( AUGUST 7, 2009) Landholdings subject of expropriation or acquisition by local government units not actually,
directly and exclusively used for non-agricultural purposes are subject if one or more
conditions apply:
An act strengthening the comprehensive agrarian reform program (carp), extending the There is an agricultural activity.
acquisition and distribution of all agricultural lands, instituting necessary reforms, amending for the The land is suitable for agriculture;
purpose certain provisions of republic act no. 6657, otherwise known as the comprehensive agrarian The land is presently occupied and tilled by tenants.
reform law of 1988, as amended, and appropriating funds therefore.
SCHEDULE OF IMPLEMENTATION
The Comprehensive Agrarian Reform Program (CARP) institutionalized in RA 6657, was envisioned by
the 1987 Constitution as a tool towards social justice through the redistribution of the country’s
The distribution of all covered by the Act shall be implanted immediately and completed within 10
wealth thereby redefining land relations and empowering landless farmers and farmworkers.
years from the activity thereof.
The CARP became the centerpiece program of the government during the administration of President
Under R.A No. 9700, the acquisition and distribution of agricultural lands under CARP shall be
Corazon Aquino. Unlike PD 27, under President Ferdinand Marcos, which was limited to rice and corn
completed by June 30, 2014.
lands, the CARP aims to redistribute the land, regardless of crops or fruit produced, to farmers and
regular farmworkers who are landless, irrespective of tenurial arrangements, to include all factors and
support services designed to lift the economic status of the beneficiaries. RETENTION LIMITS
The size of any public or private agricultural land which a person may own or retain directly or The right to choose the area to be retained, which shall be compact or contiguous, shall pertain to the
indirectly shall vary according to factors governing a viable family-sized farm, such as commodity landowner.
produces, terrain, and infrastructure and soil fertility as determined by the Presidential Agrarian
Reform Council. EXCEPTIONS:

THREE HECTARES MAY BE AWARDED TO EACH CHILD OF THE LANDOWNER, Tenants chooses to remain in the retained area, he shall be considered a leaseholder and
shall lose his right to be a beneficiary.
SUBJECT TO THE FOLLOWING:

He is at least 15 years of age.


He is actually tilling the land or directly managing the farm. Tenant chooses to be a beneficiary in another cultural land, he loses his right as a
leaseholder to the land retained by the landowner.
EXCEPTIONS:

Landowners whose lands have been covered by Presidential Decree N0. 27 shall be allowed
QUALIFICATION AND ORDER OF PRIORITY IN THE LAND DISTRUBUTION
to keep the area originally retained by them thereunder.
Original homestead grantees or their direct compulsory heirs who still own the original
homestead at the time the approval of the law shall retain the same areas as long as they PRIORITIES
continue to cultivate said homestead.
Provincial, city and municipal government units acquiring private agricultural lands PHASE ONE:
expropriation or other modes of acquisition.
Lands subject to CARP shall first undergo the land acquisition and distribution process of the All private agricultural lands of landowners with aggregate landholdings in excess of 50
program. hectares.
Rice and corn lands under Presidential Decree No. 27.
All idle and abandoned lands.
GOVERNING RULES ON LAND OWNERS All private lands voluntarily offered by the owners for agrarian reform.
All lands foreclosed by government financial institutions.
Landowners who owns lands 5 hectares or less may file a request for the issuance of All lands acquired by the Presidential Commission on Good Government.
Certification of Retention. All other lands owned by the government devoted to, or suitable for agriculture.
Landholdings covered by homestead grants and free patents issued pursuant to
Commonwealth Act No. 141 still owned by the original grantees or their direct compulsory
heirs shall be retained by them. PHASE TWO:
Heirs of deceased landowners
The landowners shall exercise his right of retention simultaneously. All alienable and disposable public agricultural lands.
The landowners shall choose his retained area within 30 days. All arable public agricultural lands under agro-forest, pasture and agricultural leases already
Tenants lessees in the retained areas who do not wish to become leaseholders in the cultivated and planted to crops in accordance with Section 6, Article XIII of the Constitution.
retained lands shall be given preference in other landholdings. All public agricultural lands which are to be opened for new development and resettlement.
The security of tenure of the farmers or farmworkers. All private agricultural lands of landowners with aggregate holdings above 24 hectares up to
Land transactions executed prior R.A No. 6657. 50 hectares.
All remaining private agricultural lands of landowners with aggregate landholdings in excess
of 24 hectares.
RIGHT TO CHOOSE AREA
PHASE THREE:
Lands of landowners with aggregate holdings above 10 hectares up to 24 hectares in so far.

Lands of landowners with aggregate landholdings from the retention limit up to 10 hectares. The DAR in coordination with the Barangay Agrarian Reform Committee (BARC) as organized in this
Act, shall register all agricultural lessees, tenants and farmworkers who are qualified to be
beneficiaries of the CARP. These potential beneficiaries with the assistance of the BARC and the DAR
shall provide the following data:
RULES AND GUIDELINES
(a) names and members of their immediate farm household;

(b) owners or administrators of the lands they work on and the length of tenurial relationship;
RULES:
(c) location and area of the land they work;
The farmers are organized and understand the meaning and obligations of farmland
ownership. (d) crops planted; and
The distribution of lands to the tillers at the earliest practicable time.
The enhancement of agricultural productivity. (e) their share in the harvest or amount of rental paid or wages received.
The availability of funds and resources to implement and support the program.
A copy of the regstry or list of all potential CARP beneficiaries in the barangay shall be posted in the
barangay hall, school or other public buildings in the barangay where it shall be open to inspection by
REGISTRATION OF LANDOWNERS the public at all reasonable hours.

LAND ACQUISITION
All persons, natural or juridical, including government entities, that own or claim to own agricultural
lands, whether in their names or in the name of others, except those who have already registered
pursuant to Executive Order No. 229, who shall be entitled to such incentives as may be provided for Procedure for Acquisition of Private Lands. — For purposes of acquisition of private lands, the
the PARC, shall file a sworn statement in the proper assessor's office in the form to be prescribed by following procedures shall be followed:
the DAR, stating the following information:
(a) After having identified the land, the landowners and the beneficiaries, the DAR shall send its
(a) the description and area of the property; notice to acquire the land to the owners thereof, by personal

(b) the average gross income from the property for at least three (3) years; delivery or registered mail, and post the same in a conspicuous place in the municipal building and
barangay hall of the place where the property is located. Said notice shall contain the offer of the DAR
(c) the names of all tenants and farmworkers therein; cda to pay a corresponding value in accordance with the valuation set forth in Sections 17, 18, and other
pertinent provisions hereof.
(d) the crops planted in the property and the area covered by each crop as of June 1, 1987;
(b) Within thirty (30) days from the date of receipt of written notice by personal delivery or
(e) the terms of mortgages, lease, and management contracts subsisting as of June 1, 1987, and
registered mail, the landowner, his administrator or representative shall inform the DAR of his
(f) the latest declared market value of the land as determined by the city or provincial assessor. acceptance or rejection of the offer.

(c) If the landowner accepts the offer of the DAR, the Land Bank of the Philippines (LBP) shall pay
REGISTRATION OF BENEFICIARIES the landowner the purchase price of the land within thirty (30) days after he executes and delivers a
deed of transfer in favor of the government and surrenders the Certificate of Title and other (g) others directly working on the land.
muniments of title.

(d) In case of rejection or failure to reply, the DAR shall conduct summary administrative
proceedings to determine the compensation for the land requiring the landowner, the LBP and other Provided, however, That the children of landowners who are qualified under Section 6 of this Act
interested parties to submit evidence as to the just compensation for the land, within fifteen (15) days shall be given preference in the distribution of the land of their parents: and Provided, further, That
from the receipt of the notice. After the expiration of the above period, the matter is deemed actual tenant-tillers in the landholdings shall not be ejected or removed therefrom.
submitted for decision. The DAR shall decide the case within thirty (30) days after it is submitted for
Farmers already in place and those not accommodated in the distribution of privately-owned lands
decision.
will be given preferential rights in the distribution of lands from the public domain.
(e) Upon receipt by the landowner of the corresponding payment or, in case of rejection or no
SECTION 23. DISTRIBUTION LIMIT. — No qualified beneficiary may own more than three (3)
response from the landowner, upon the deposit with an accessible bank designated by the DAR of the
hectares of agricultural land.
compensation in cash or in LBP bonds in accordance with this Act, the DAR shall take immediate
possession of the land and shall request the proper Register of Deeds to issue a Transfer Certificate of
SECTION 24. AWARD TO BENEFICIARIES. — The rights and responsibilities of the beneficiary
Title (TCT) in the name of the Republic of the Philippines. The DAR shall thereafter proceed with the
shall commence from the time the DAR makes an award of the land to him, which award shall be
redistribution of the land to the qualified beneficiaries.
completed within one hundred eighty (180) days from the time the DAR takes actual possession of the
(f) Any party who disagrees with the decision may bring the matter to the court of proper land. Ownership of the beneficiary shall be evidenced by a Certificate of Land Ownership Award,
jurisdiction for final determination of just compensation. which shall contain the restrictions and conditions provided for in this Act, and shall be recorded in the
Register of Deeds concerned and annotated on the Certificate of Title.

SECTION 25. AWARD CEILINGS FOR BENEFICIARIES. — Beneficiaries shall be awarded an


QUALIFIED BENEFICIARIES area not exceeding three (3) hectares which may cover a contiguous tract of land or several parcels of
land cumulated up to the prescribed award limits.

The lands covered by the CARP shall be distributed as much as possible to landless residents of the
same barangay, or in the absence thereof, landless residents of the same municipality in the following TRANSFERABILITY OF AWARDED LANDS
order of priority:
Lands acquired by beneficiaries under this Act may not be sold, transferred or conveyed except
(a) agricultural lessees and share tenants; through hereditary succession, or to the government, or the LBP, or to other qualified beneficiaries for
a period of ten (10) years: Provided, however, That the children or the spouse of the transferor shall
(b) regular farmworkers;
have a right to repurchase the land from the government or LBP within a period of two (2) years. Due
(c) seasonal farmworkers; notice of the availability of the land shall be given by the LBP to the Barangay Agrarian Reform
Committee (BARC) of the barangay where the land is situated. The Provincial Agrarian Reform
(d) other farmworkers; Coordinating Committee (PARCCOM) as herein provided, shall, in turn, be given due notice thereof by
the BARC.
(e) actual tillers or occupants of public lands;

(f) collectives or cooperatives of the above beneficiaries; and


LEARNING ACTIVITIES/EXERCISES
LESSON 1: Large geographic area wherein supply and demand forces operate to set up
prices.
ACTIVITY 1. MODIFIED TRUE OR FALSE. WRITE T IF THE STATEMENE IS CORRECT AND SUPPLY THE
CORRECT ANSWER IF THE STATEMENT IS WRONG. Elements of agricultural Market

________1. Section 25 states that the ownership of the beneficiary will be acknowledge and will be
A. Buyers
rewarded with a Certificate of Land Ownership Award as evidence.
Ultimate buyers- buy good to satisfy their personal needs
Industrial buyers- buy good for resale/for the purpose of transforming it into
________2. Qualified beneficiaries will be awarded more than three hectares as declared in Section 25.
another form.
B. Seller
________3. The Comprehensive Agrarian Reform Program (CARP) became the centerpiece program of the
Supplier of goods and services
government during the administration of President Noynoy Aquino.
C. Trading Facilities
________4. A child of the landowner will be awarded with three hectares granting that he/she should be
at least 16 years of age.
Point of Production
________5. A copy of the registry or list of all potential CARP beneficiaries in the barangay should not be
posted in the barangay hall, school or other public buildings in the barangay. Point of first sale by the farmers, typically at the farm or at the farmer’s home.

ACTIVITY 2: Point of Consumption

Point where marketing ends and points of last purchase/sale.


ESSAY. Specific Instructions: Answer the question properly with readable handwriting. Make it
concise or brief as you can. Services

1. Is Agrarian Reform in the Philippines a failure or a success? Functions perform on a product to alter its form, time, place or characteristics
that involves costs and added value to the product and somebody has to pay for
it.
May involve the physical handling of the product such as transportation,
packaging and processing or may not directly involve in the physical handling
LESSON 2: Agricultural marketing AND RELATED LAWS such as advertising and assumption of risks.

Production Services
DEFINITIONS OF TERMS
Services added prior to the point of production.
Marketing
Marketing Services
Series of services/process of moving the product from the point of production to
the point of consumption. Services added after the point of production.
Market

Place were buyers and sellers meet to exchange goods and services
Group of buyers and sellers with the facilities for trading with each other The Marketing services
I. Processing 3. Commission Agent
II. Transporting Takes over the physical handling of the products, arranges for the terms of sales,
III. Storing collects, deducts his fees, and remits the balance to his principal.
IV. Buying and Selling Grains, poultry and livestock are commonly sold to wholesalers and processors
through the commission agent.
Marketing System for Agriculture Products
4. Wholesaler- Retailer
Complex system within which various subsystem interact with each other and with the different Business operators who get the produce in large quantities either from the
marketing environments. wholesalers or contract buyers.
They sell mainly to retailers on wholesale basis but they also retail to rest and
maintain permanent stalls in the market.
Components or Subsystem of the Agricultural Marketing System
5. Assembler-wholesaler
Buy from producers and contract-buyers, assemble the products in large volume
and transport them to the market centers, locally known as the viajeros that sell
1. Producer Subsystem. Consist of initiators of production who may be small farmers or products on wholesale basis.
corporate farmers.
2. Channel Subsystem. Consists of market participants or intermediaries who are directly 6. Butcher-Retailers
responsible for the making the farmer’s products available to the users at the right place, Middlemen who buy live poultry and livestock from the wholesaler or direct
time and form. from the producer and sell them in dressed or carcass form.
3. Flow Subsystem. Facilitates product’s financial and information flows. 7. Retailers
4. Functional Subsystem. Consists of marketing functions or services related to the creation Product handlers who serve as the last link in the marketing channel.
of place, time and form utilities that involve assembly, concentration, dispersion and
equalization activities.
KEYS TO HAVE A SUCCESSFUL AGRICULTURAL BUSINESS IN THE
5. Environmental Subsystem. Facilitate market performance. Encompasses four factors that SHORT RUN
affect the entire marketing subsystem:
Climatic/physical A. Start small and grow naturally
Socio/cultural
Economic/technological Don’t start too big and invest a lot of money. Be patient and go through your research and
Legal/political factors development phase. Whatever you start with, try to get ALL the profit—no wholesalers!”
You’ll be learning, and naturally making mistakes along the way. Starting small means that
your mistakes are likely to be less costly. If you’re new to managing an agricultural enterprise,
Marketing Channels of Selected Agricultural Products
it is much easier to manage a small operation.
1. Contract-Buyers
Type of intermediaries most prevalent in the fruit and vegetables “Grow slowly at an organic rate. Watch what sells. Don’t increase debt load. Farmers’ markets
Buying contracts between the buyer and the producer are made even before the are a safe training ground to begin selling.”
product is harvested.
B. Make decisions based on good records
2. Wholesalers
They sell to retailers, other wholesalers, and industrial users, but do not sell in
Trying to manage and grow an enterprise without good records is like trying to find an address
significant amounts to ultimate consumers.
in a strange city without a map. Without records, you are limited to making educated guesses
about the progress of your business, whether or not you are meeting your goals, and the
possible reasons why or why not. Only two of the producers said that they were not keeping F. Keep informed
records, but even these two turned out to be keeping at least some records for tax purposes. Hands down. You should be attentive of what happening around you. Know what the latest
trend is. Farm visits, telephone and e-mail conversations, and networking at conferences and
C. Create a high-quality product other events can give you information and insights that you can’t get any other way. However,
be aware that others may see you as competition and not be willing to share their knowledge.
A good idea is to do as the salad mix grower did, and solicit information from a grower in
Since these farmers can’t compete in the high volume commodity markets, they have to
another state who will not be threatened by you.
concentrate on quality, not quantity. “Offer a very, very, very high-quality product,” says a
grower. “Quality” is made up of many dimensions. Fresh, better tasting, clean, reliable, G. Plan for the future
sustainably produced…it may be hard to define, but these producers know it when they grow “Fail to plan and you plan to fail” is a cliché for a reason—it’s true. Planning is often neglected
and process it. And consumers know it when they taste it! since there’s no immediate payoff, but it is essential to success.

While it may be tempting to use seconds, culls, or damaged fruits, vegetables, and herbs in You may or may not need a formal business plan, but you do need a strategic plan. This plan
processed food products, the wise grower will resist that temptation if he or she is serious will define your business mission, your present situation, and where you want to be in the
about developing the enterprise. As one grower says, “For goodness’ sake, do it right! No low- next few years. You will need to cover assumptions and risks, goals and objectives and how
grade, substandard ingredients, since the buyer knows what he’s getting. No blending! This is you will report progress. “Be realistic in terms of goals, pricing, and the limits of your time.
a downfall for a lot of specialty farmers, who don’t want to throw away half the crop if it is Factor quality of life in there somewhere,” advises one interviewee. Another says “Start on a
substandard.” With growing concern today about food safety, it is important that products be shoestring and remain flexible. Realize that the best-laid plans can go wrong and that things
safe to eat and to use. This is a vital dimension of quality. change. You need to roll with the punches.”

D. Follow demand-driven production H. Continuous evaluation


A plan that is not periodically reviewed is nearly useless. Your business is constantly changing
See what other companies do, but don’t emulate them too closely. Innovate, don’t copy; pick and your plan must be reviewed and modified accordingly. The plan must be kept current for
out only what they’re doing right. Find your market first,” adds the salad mix grower. When you to effectively measure your performance. “Be ready to change in midstream, as there is
asked whether marketing considerations affected their choice of value-adding activity, eleven no way you can predict marketing,” says an interviewee. As you gain more experience and
of the fourteen respondents said yes. In agricultural marketing, there are the “push” and the knowledge, you should incorporate your new perspectives and insights into your planning. Be
“pull” approaches. The “push” approach means producing a product, and then “pushing” it sure to keep examining your original goals and make sure that your business is still meeting
onto consumers—the traditional means of marketing many commodity crops. The “pull” your goals.
strategy, however, is increasingly becoming the norm in today’s environment. With this
approach, products are “pulled” out by consumer preference. It appears that most of the “Stop and evaluate (be objective) periodically, to see if it’s really WHAT you want to be doing
producers employed this “pull” approach and looked for an existing market outlet or and HOW you want to be doing it.”
opportunity, rather than producing a product and then looking for markets.

“Find your market first and make sure that the market fits what you’re already doing.”

I. Perseverance
E. Get the whole family or partners involved Why is perseverance a key to success? It’s simple: most businesses take a long time to get
established. The successful entrepreneurs we interviewed had been involved in adding value
The importance of family and partner involvement became clear and helpful. Every member for an average of nine years, with five years being the least amount of time reported. In
of family that has different skills somehow contributed to the business’ success. making it on the Farm, the businesses profiled took from a minimum of about five years to
over twenty years to become successful. To be able to both add value and capture that value for yourself, you’ll need to think strategically—
what is your competitive advantage? A sustainable advantage is some aspect of your business that is
It can be tough finding out how to get started with adding value to your farm products. You unique and would be very hard for others to copy. Focus in on how to best use that advantage.
will need a good deal of perseverance just to figure out how to produce the products, much
less how to market them. B. Establish a loyal customer base
Since every human being is unique, this makes a lot of sense. No one else can do exactly what you do.
“Have a VERY deep well of perseverance. Do the business plan and take as much time as it One thing our successful farmers have in common is that they provide more than just food or a
takes before you invest a whole lot of resources in your enterprise. Financial backers will take product. They also provide pleasant social interactions, a chance to get in touch with the rural way of
you more seriously.” life, education, and services.

J. Adequate Capitalization The key to success is “Quality control, fair price, and dependability at markets. You need to be there
A business is likely to operate at a loss for at least the first year of operation. Make sure you when you’re expected. In general I try to follow the golden rule [treat others as you wish to be
have adequate resources. Remember that most businesses fail due to lack of capital. The treated].” You never know when you may need help, and if you’ve built solid relationships, these
amount that you’ll need will depend on the type of business. Manufacturing businesses will people will go out of their way to help you. It’s a good idea to conduct business treating everyone you
need more capital than service businesses. After figuring out how much you’ll need for your meet as a potential customer.
buildings and equipment, you’ll also need to have enough cash on hand to cover operating
expenses for at least a year. Be sure to include some salary for yourself in the operating c. Choose something you love to do —and something that fits your personality and goals
expenses. You will need to have enough money to live on until your business becomes
profitable—which, as we’ve seen, can take years.
Why is this so important? Producers say they want to make more money—so why not just identify a
While good planning can minimize unforeseen costs, no one can plan for every contingency. product or service that is known to be profitable, in high demand, and so on, and go with that? Well,
Your budget should include some funds for these costs. While you’ll need capital, make sure there are a lot of reasons. First of all, establishing an enterprise takes time and hard work. “The time
that you balance the need to plan for the unexpected with the need to minimize your debts. between start-up and actually making a profit is usually a whole lot longer than you think it will be.
“Watch your debt load! People often buy the wrong machinery, which can be a very costly Without that passion, it’s difficult to find the energy and motivation to stick with it. Will you be able
mistake,” cautions a producer. to eat, breathe, and sleep your enterprise for several years? If not, perhaps it isn’t the right business
for you.
This is another reason to plan carefully and to start as small as you can, bearing in mind the
production capacity that you may need in the future. An extremely important form of capital Your sincere enthusiasm and belief in your product are part of what makes you unique. Produce
is cash. Managing your cash flow is crucial to success; some say that cash flow is more quality products that you can be proud of, and set your prices to reflect that quality. You may be
important than profit. You can go a long time breaking even, especially if you remember to convincing a reluctant customer at the farmers’ market to try a new vegetable, or convincing a
pay yourself rather than flowing every dollar back into the business. But if you fail to have reluctant manager at your local grocery store to stock your salsa. Enthusiasm is contagious!
enough cash to pay your suppliers, creditors, or your employees, you’re out of business!
“Love what you do; live with intention; always learn; don’t forget to play.”

KEYS TO have Successful agricultural business IN THE LONG RUN


AGRICULTURE AND RELATED LAWS

A. Focus
Educate yourself about your product and differentiating yourself in the marketplace. You need to be A. Agrarian Reform Laws
1. PD 27
aware that the expectations of the public and the conventional business world are that your product
Known as Tenants Emancipation Decree of 1972
is no different from any other product out there.
It provided for the transfer of rice and corn lands under tenancy to the tiller D. Pest Control Law
thereof.
2. Proclamation No. 131 1. PD 1152 Philippine Environment Code
Instituted in 1987, a comprehensive agrarian reform program covering all public The use of fertilizers and pesticides in agriculture shall be regulated prescribing
and private agricultural lands. therefore a tolerance level in their use.
3. Executive Order No. 229 2. PD1433 Promulgating the Plant Quarantine Law of 1978
Provided for the mechanism needed to implement CARP. Thereby revising and consolidating existing quarantine laws to further improve
4. RA 6657 and strengthen the plant quarantine service of the Bureau of Plant Industry.
Comprehensive Agrarian Reform Law of 1988 3. Memorandum Order 126 series of 1993 (issued by President Ramos)
It covers, regardless of the tenurial arrangement and commodity produced, all Implementing Kasagaan ng Sakahan at Kalikasan ( KASAKALIKASAN) – a
public and private agricultural lands including other lands of public domain National IPM Progam which aimed at making Integrated and Pest management
suitable to agriculture. that standard approach to crop husbandry and pest management in rice, corn
5. RA 3844 as amended by RA 6389 and vegetable production).
Known as the Code of Agrarian Reform
Governs the implementation of the agrarian reform program of the Philippines E. RA 7394- Consumer Act of the Philippines of 1991 or Product Quality and Safety Law
Promulgated to institute land reforms including the abolition of share tenancy,
transfer of capital to industry, and the establishment of implementing agencies. The policy to protect the interest of the consumer, promote his/her general
welfare and to establish standard of conduct for business and industry.
B. RA 8435 – The Agriculture and Fisheries Modernization Act of 1997 ( AFMA) Objectives:

An act prescribing urgent related measure to modernize the agriculture and Protection against hazards to health and safety
fisheries sectors of the country in order to enhance their profitability and prepare Protection against deceptive, unfair and unconscionable sales acts and
said sectors for the challenges of globalization through an adequate, focused, and practices
rational delivery of necessary support services, appropriating funds therefore and .Provision of information and education to facilitate sound choice and the
for other purposes. proper exercise of rights.
Became effective beginning February 9, 1998 Provision of adequate rights and means of redness.
Its major concerns are: Involvement of consumer representatives in the formulation of social and
 Food security economic policies.
 Poverty alleviation and food security
 Income Enhancement and Profitability especially for farmers and fisher F. The PRC and the Board of Agriculture
folk.
 Global Competitiveness 1.RA 8981 –PRC Modernization Act of 2000
 Sustainability An act modernizing the professional regulation commission repealing for the
purpose of PD 2023 (Creating the Professional Regulation Commission and
C. Poverty Alleviation Law prescribing its powers and functions and other purposes.
2. RA 8435 Section 75. Agriculture and Fisheries Board
1. RA 8452 Social Reform and Poverty Alleviation Act There shall be created Agriculture and Fisheries Board in the Professional
Highlighting the ERAP Administration anti-poverty program is the Katipunang Regulation Commission to upgrade the Agriculture and Fisheries profession.
Kuntra Kahirapan. G. Crop Insurance
National Anti-Poverty Commission ( NAPC ) –created by virtue of RA 8425; the
coordinating and advisory body that exercises oversight functions in the 1. PD 167 – Law which constitutionalized the Philippines Crop Insurance Corporation
implementation of the Erap Para sa Mahirap Program or Poverty Eradication (PCIC).
Program
Under this law, PCIC is mandated to provide insurance protection to the An act providing for the development, management and conservation of the
farmers against losses arising from natural disasters, plant disease and pest fisheries and aquatic resources integrating all laws pertinent thereto and for
infestation. other purposes.
2. RA 8175 16. RA 3571
An act amending the charter of the PCIC in order to make it more stable and An act prohibiting the cutting of trees, destroying, injuring of planted growing
beneficial to farmers and the national economy. trees, flowering plants and shrubs or plant scenic values along public roads,
plazas, parks, school
H. RA 7900- High Value of Crops Law
LEARNING ACTIVITIES/EXERCISES
An act to promote the production, processing, marketing, and distribution of
high-valued crops providing funds therefore and for other purposes.
Lesson 2:
I. Others
Activity 1: Answer the questions below and find the correct answer inside the box.
1. RA 3601
Establishments of the National Administration (NIA) as government-owned and ___________1. It is the process of moving the product from the point of production to the point of
controlled corporation on June 22, 1974. consumption.
The creation of NIA is primarily aimed at achieving the optimal and diversified
utilization of water by undertaking irrigation projects. ___________2. It is created by virtue of RA 8425; the coordinating and advisory body that exercises
2. RA 2152 – Irrigation Laws of the Philippines oversight functions in the implementation of the Erap Para sa Mahirap Program or Poverty
3. PD 1144- created the Fertilizer and Pesticide Authority and abolishing Fertilizer Industry
Eradication Program.
Authority.
4. PD 1151- Known as the Philippines Environmental Policy and introduced the system of
___________3. It in an act about the establishment and management of National Integrated
environment impact assessment in the development activities and formulate measures
Protected Areas Systems of 1992.
for preventing or mitigating adverse impact.
5. PD 175- strengthen the cooperative movement law
___________4. You need to be aware that the expectations of the public and the conventional
6. RA 2508- Rural Credit Law enacted Feb 15, 1915
7. PD 775- Sugar Marketing Cooperative Law business world are that your product is no different from any other product out there.
8. PD 269-Electric Cooperative Law
9. EO 898- Transport Cooperative Law ___________5. It is a key to a successful business by figuring out how to produce the products,
10. RA 7308- an act to promote and develop the seed industry in the Philippines and much less how to market them.
created the National Seed Industry Council.
11. RA 7606- an act providing a Magna Carta for Small Farmers. ___________6. Locally known individuals that sell products on wholesale basis.
12. RA 9003- the Ecological Solid Waste Management Act
An act delegating powers and functions of DENR, DTI, and other concerned ___________7. It is one of the major concerns of AFMA
agencies and LGU’s, the rights and obligations of the stakeholders and the
rights and duties of the people with respect to the implementation of solid ___________8. They sell to Retailers but do not sell in significant amounts to ultimate consumers.
waste management.
13. RA 7586 ___________9. They are the Supplier of goods and services.
The establishment and management of National Integrated Protected Areas
Systems of 1992 or NIPAS Act. ___________10. It is one of the marketing services.
14. RA 8749- Philippine Clean Air Act of 1999
ACTIVITY 2.
A policy of balancing development and environmental protection.
15. RA 8550- Philippines Fisheries Code
ESSAY. ANSWER THE QUESTION PROPERLY WITH READABLE HANDWRITING. MAKE IT CONCISE OR A S T Y R K S A M O E L I O K E A P R L S T
BRIEF AS YOU CAN.
M E E O G F E P A V P T O F S Y S T S E A O
Explain your understanding about this quote
O W R P L S X B O L L E I S N P A O Q A L Y
1. “Love what you do; live with intention; always learn; don’t forget to play.”
P E R C E V E R A N C E N A P C X O S E S

P E X C W K E T Q Z A P Q O G O T A P E R S
2. “Fail to plan and you plan to fail”

BOOK AND ONLINE REFERENCES

https://www.facebook.com/greenempireph

http://ndl.ethernet.edu.et/bitstream/123456789/78416/2/AGRI-M~1.PDF

https://www.sida.se/contentassets/494619f4aaab45e1af4607bbfb2ea1dd/15518.pdf

A C L E T R A N S P o R T I N G W P T E E M

V N O L C P E A C E G M A S T E R Y C O M E

S E L L E R V O T E R L O P E S Z A X R Y Y

A X E S R B M O P L O D S I V E W I S E N O

L T K M E W A S T E Q O V R V O P B A L L U

E S T I M A T E D W O P I O I T V X L K O R

W F H A N S A M S U S T A I N A B I L I T Y

A O B L E S S M A T E S J W A I S T E S W P

S C G G U I M O R E L P E S A O P I Z L H L

H U L O O Z V A U Y X E R P E N N P O E O A

B S Z X R Q Y P R C I O O R D O I Y P E L Y

S T A S T E K I S K O P S O E P P Y Q P E S

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