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122 : Socialized Industrial Forest

Management Agreement (SIFMA)
! November 18, 2021 " harvesting and transport, tenure, tree plantation

Overview
An agreement entered into the State, through the DENR, and a qualified applicant that provides the
latter with exclusive right to develop, utilize, and manage a small tract of forest land consistent with the
principle of sustainable development and in accordance with the approved management plan.

Main DENR Administrative Order No. 2004-30

Governing
Policies

Qualified Applicants for SIFMA shall be:

Participants Individuals/single family units, who are Filipino citizen, of legal age and
[1,3]
preferably residents of the municipality where the area is located
Actual occupants of the area being applied for SIFMA
Cooperatives, associations and partnership whose members are Filipino
citizens residing in the province where the SIFMA site is located, duly
registered under Philippine laws

Period of 25 years, renewable for another 25 years

[1]
Tenure

Application Duly accomplished and notarized application form

Requirements Sketch map of the area
[1,2]
Application fee
:
 Proof of financial and technical capabilities to undertake initial activities in
forest plantation establishment and development
LGU Endorsement in the form of Resolution
Certification Precondition or Free and Prior Informed Consent (FPIC)

In the case of Corporation/Cooperative Association:

Certificate of SEC or CDA Registration
Articles of Incorporation and By-laws wherein the development and
management of forest lands and resources should be among the purposes
for which the corporation is incorporated
Board Resolution authorizing any of the O!cers to file the application
Audited financial statement for the last two (2) preceding years

Available Areas Areas Available for Socialized Industrial Forest Management Program (SIFMP):
[1]
All grasslands, brushlands, and open denuded forest lands including those
within government reforestation project not classified under the NIPAS, nor
subject of CADC, CALC, vested rights, licenses, permits, etc.

Where to Apply Community Environment and Natural Resources O!ce/ Implementing Provincial
[1]
Environment and Natural Resources O!ce

Approving DENR Secretary

[3]
Authority

Applicable Fees Administrative Fees

[1,2]
Government Share (income taxes, rentals)

Incentives and All planted trees, crops and products in SIFMA Area shall belong to the SIFMA
[1]
Privileges holder who shall have the right to harvest, sell and utilize such trees and
crops, except those retained foe environmental protection purposes
Export of logs, lumber and other forest products harvested from the SIFMA
shall be allowed by the DENR in accordance with the government allocation
system
All plantation products derived from the SIFMA area shall be exempted from
payment of forest charges
Entitlement to appropriate and reasonable compensation for the
developments in the area, in case of cancellation of the SIFMA without cause
or for public interest
Participants of SIFMP who are actual occupants shall be given priority in the
event rules, regulations or laws in the future shall allow a more permanent
:
 tenure arrangement
No restrictions on the use of the SIFMA and the improvements in the SIFMA
area as collateral for obtaining loans for the improvement of the area,
provided, that there is prior approval of the issuing authority of the SIFMA
Technical assistance should SIFMA holders wish to confederate into a larger
organization

Tenure Holder Develop the SIFMA area within three (3) years from the grant of the
Responsibilities agreement
[1]
Protection, rehabilitation and conservation of forestlands and resources
within its designated area and shall assist the government in the protection
of adjacent forest lands
Pollution prevention and mitigation, and environmental protection measures
to prevent degradation of soil and water resources
Rehabilitate open and denuded areas and the protection of existing natural
forest vegetation
Keep areas with slopes 50 percent of higher and strips of land at least 20
meters in width bordering rivers and streams permanently under tree cover
Prepare and implement the Indicative Development Plan

Development Indicative Development Plan

Plans [1]

Allowable Planting of forest tree species including rubber, and/or non-timber species
[1]
Activities like rattan and bamboo in not less than 60% of the area; fruit trees in not less
than 30% of the area, and the remaining plantable area for agricultural crops
preferably permanent agricultural crops
Application of silvicultural programs such as timber stand improvement and
assisted natural regeneration
Harvesting & transport of planted trees

Prohibited Cutting of trees along gullies, steep slopes, river channels and other identified
[1]
Activities critical areas
Conversion of SIFMA area to other land uses not authorized under the
agreement
Planting and introduction exotic species which are untested in Philippine
conditions, unless clearance is given by DENR
Cutting of naturally growing trees
Abandonment of SIFMA Area
:
Flow Chart

Policy References
Main Policies
The following are the existing policies used as references in this index:

Code Policy Policy Title Date Signatory

No. Signed

1 DAO Revised Rules and Regulations Governing the Socialized 2004 Sec. Elisea
2004- Industrial Forest Management Program Aug 25 G. Gozun
30

2 DAO Prescribing the Revised Schedule of Forestry 2004 Sec. Elisea

2004- Administrative Fees Jun 15 G. Gozun
16

3 DAO DENR Manual of Authorities on Technical Matters 2016 Sec.

:
 2016- May Ramon
07 19 J.P. Paje

Other Policies
The following are other existing policies related to SIFMA:

Policy Policy Title Date Signatory

No. Signed

DAO Guidelines on the Management of Cancelled or Terminated, 2020 Sec. Roy

2020- Expiring, and Expired Tenurial Instruments Jun 05 A. Cimatu
09

DAO Promoting Tree Plantation Development and Liberalizing 2020 Sec. Roy
2020- Harvesting and Transport of Planted Trees and Tree Derivates for Dec 17 A. Cimatu
18 Inclusive Growth and Sustainable Development

DAO Prescribing the Guidelines on the Issuance of Provisional 2021 Sec. Roy
2021- Agreement for All Tenure Instruments Issued under the Forestry Aug 03 A. Cimatu
27 Sector

Policy History
The following are the policies related to IFMA that were repealed and/or amended:

Policy No. Policy Title Date Signatory

Signed

DAO Rules and Regulations Governing the Socialized Industrial 1996 Sec. Victor O.
1996-24 Forest Management Program Aug 23 Ramos

DAO No. DENR Manual of Authorities for Technical Matters 2016 Sec. Ramon
2016-07 May 19 J.P. Paje

DAO No. DENR Manual of Authorities for Technical Matters 2022 Sec. Jim O.
2022-10 May 30 Sampulna
:
Related Documents
Frequently Asked Questions [link to document]

See Also
Integrated Forest Management Agreement

Forest Land Use Agreement

Forest Land Use Agreement for Tourism

Community-Based Forest Management Agreement

Harvesting and Transport

← 220 : Forestry Utilization: Non-Timber Forest Products

130 : Forest Land Grazing Management Agreement →

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