Magna Carta of Small Farmers

Magna Carta of
Small Farmers
Republic Act No. 7607
Declaration of Policy
• ‘It is the declared policy of the State to give highest priority to the
development of agriculture, such that, equitable distribution of benefits
and opportunities is realized through the empowerment of small farmers
• In pursuance of this policy, the State shall recognize the right of small
farmers and farmworkers, as well as cooperatives and independent
farmers' organizations, to participate in the planning, organization,
management and implementation of agricultural programs and projects
especially through the bayanihan spirit
Scope
• Shall cover all small farmers and, to the extent herein provided, the
departments, offices, agencies, subdivisions or instrumentalities of the
National Government
Who are the Small farmers?
• Small farmers comprised a significant

segment of the Filipino farming
population, and are most vulnerable to
rapidly changing, social, political and
environmental conditions.
Who are the Small farmers?
• The Magna Carta of Small Farmers broadly
defines small farmers as ‘natural farmers
dependent on small-scale subsistence farming as
their primary source of income and whole sale,
barter or exchange of agricultural products that
do not exceed a gross value of one hundred
eighty thousand pesos (P180,000) per annum
based on 1992 constant prices.’ This means that
a small farmer is earning a monthly farming
income of P15,000 or below.
Organization of Farmers
• The government shall assist small farmers
in establishing self-help organizations (e.g.
cooperatives, associations). As organized
farmers, they will be able to purchase farm
inputs at lower cost and obtain fair prices
for their products. They will be
represented in government agencies (e.g.
Philippine Crop Insurance Corporation,
National Irrigation Administration)
Empowerment of Small farmers
• The government recognizes their rights to
chart their own political and socio-
economic developments. Correspondingly,
small farmers have obligations to initiate
endeavors that will contribute to
agricultural development.
• It refers to provision of opportunities

whereby farmers can have access to
ownership or management of production
resources.
Empowerment of Small farmers
Infrastructure and farm inputs
• The government shall provide
infrastructure support, access to
farm inputs and services to small
farmers. They will be assisted to
gain access and own facilities
necessary for pre-and-post harvest
facilities (PPHF).
Infrastructure and farm inputs
Linkages will be established with NGOs and concerned
government agencies to provide:
• Transportation to ensure market accessibility and
minimize product wastage
• Communications to facilitate access to vital
information
• PPHF and services for lease to every barangay
• PPHF for lease to farmers’ organizations (FOs)
• Market to assure markets for farmers’ produce
• Use of good seeds and planting materials
• Use of fertilizers and pesticides
Farm machinery and equipment
• The government shall acquire and distribute to FOs farm equipment and
machinery to increase their productive capabilities.
• The Department of Agriculture (DA) shall develop schemes in sharing,
pooling, leasing or acquiring draft animals, equipment or machinery
needed by small farmers. The funding requirement of this undertaking
shall be included in DA’s annual budget.
Water management and irrigation
facilities
• The government shall develop, manage and
conserve water resources. The Department of Public
Works and Highways (DPWH) and National
Irrigation Administration (NIA) will establish small
water impounding projects. Small farmers will be
trained on this. Small irrigation systems will also be
prioritized. Inefficient and underutilized irrigation
systems will be rehabilitated, improved and
maintained. The Bureau of Soils and Water
Management (BSWM) will prepare parcellary maps,
identifying agricultural lands that can be reached by
irrigation systems. This will enable the government
to implement irrigation pump distribution programs.
Water management and irrigation
facilities
• Small farmers shall be encouraged to form
irrigators’ associations to gain access to
irrigation services, and thereon assume the
operation and maintenance of irrigation systems
and the responsibility of collecting fees from
individual members, remitting an amount to
NIA. The Department of Environment and
Natural Resources (DENR) will conserve and
restore watersheds to ensure water for irrigation
systems, while DA will implement environment-
friendly farming practices
Agricultural credit
• The government shall establish an efficient
rural credit delivery system, with minimum
collateral requirements, accessibility,
reasonable repayment terms, quick loan
documentation and processing procedure.
The features of the credit delivery system
for small farmers shall include, among
others, a maximum rate of interest not to
exceed seventy-five percent (75%) of
commercial rate per annum inclusive all
service, penalty and other charges.
Agricultural credit
• The Agricultural Credit Policy
Council (ACPC) shall subsidize the
education and training of small
farmers on credit awareness, loan
acquisition and repayment. ACPC
shall also expand its loan guarantee
coverage to cover not only rice and
corn but also other crops, livestock,
poultry, fishery and agroforestry.
Agricultural credit
• ACPC will subsidize costs of information
dissemination, monitoring, training and
registration. FOs may serve as conduits of
rural and development banks for effective
agricultural credit delivery. All agricultural
lending programs of the government will
be consolidated under the administration
of LBP. The loanable agricultural funds
shall be utilized for direct lending to small
farmers for their production, processing,
post-harvest and marketing requirements
Wage Incentives and price support
• The government shall provide these incentives and
reward systems:
1. Financial and technical assistance
2. Representation in appropriate government
agencies
3. Investment and financing programs
4. Preferential tariff terms on imported farm inputs
and spare parts, farm machinery and equipment
5. Incentives and recognitions to farmers adopting
efficient farm technologies
• The government shall provide these
incentives and reward systems:
6. Widen the scope of existing crop and
livestock insurance program
7. Study tours, both local and overseas
8. Certification of farm skills
9. SSS farmers’ insurance coverage
10. Prohibition of importation on agricultural
products that are produced locally in
sufficient quantity
• The government shall also provide technical and skills training for small farmers
to engage in income-generating activities to supplement farm income. DA shall
establish a price support system, especially rice and corn. The government shall
endeavor to set farm gate prices that respond to the changing economic
conditions. Contract and seasonal farm workers are entitled to minimum wages.
Procurement of agricultural produce, especially rice and corn, shall be done
directly from small farmers or FOs.
• These shall be provided through appropriate policies, research, technology and
training, and adequate financial production, marketing and other support services.
Research and extension services
• The government shall conduct strategic research and extension undertakings to
address the specific needs of small farmers. Philippine Council for Agriculture
and Resources Research and Development(PCARRD) shall lead in strengthening
the existing R&D system in coordination with Bureau of Agricultural Research
(BAR) and others. Adaptation trials shall be verified through demonstration farms
on farmers’ fields. The application of indigenous technology and materials,
resource conservation, farm productivity other similar considerations shall be
emphasized.
Research and extension services
• BSWM shall conduct studies to determine the best land use, most profitable
cropping mix and the fertilizer needed for such areas and crops, and the suitable
soil management practices. The Agricultural Technologists of DA shall serve as
the link between R&D institutions and farmers. They shall disseminate tested
local-specific technologies to farmers. The Department of Trade and Industry
(DTI) and DA shall jointly devise a program that will increase the linkage
between agriculture and industries specific needs of small farmers
References:
• Republic Act No. 7607. Accessed in October 5, 2020 at

https://www.chanrobles.com/republicactno7607.htm#.X4E2ENkzbtQ.
• World Agroforestry Centre (ICRAF – Philippines). 2009. A Closer Look on the

Magna Carta of Small Farmers in the Philippines. Policy Brief, Issue No. 2.
Accessed in October 05, 2020 at https://pdf.usaid.gov/pdf_docs/Pnadu403.pdf.

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Magna Carta of

• Small farmers comprised a significant

• It refers to provision of opportunities

• Republic Act No. 7607. Accessed in October 5, 2020 at

• World Agroforestry Centre (ICRAF – Philippines). 2009. A Closer Look on the

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