RA 7900

AN ACT TO PROMOTE THE PRODUCTION, PROCESSING, MARKETING AND

DISTRIBUTION OF HIGH-VALUED CROPS, PROVIDING FUNDS THEREFOR, AND FOR

OTHER PURPOSES

Enacted into law on the 23rd of February 1995, the High Value Commercial Crops

Development Program (HVCDP) is a priority program of the Department of Agriculture created

through Republic Act 7900 known as the High Value Crops Development Act, with a mandate to

ensure food security, promote productivity and quality of crops with high export potentials,

poverty alleviation and sustainable growth. This act was legislated to promote the production,

processing, marketing, and distribution of high value crops to increase income, create livelihood

opportunity and contribute to national development. 1

The four (4) pillars that play a vital role for the program are:

 Land (productive and health soil)

 Small producers (organized, interested and competent farming communities)

 Support System (appropriate technology, functional support services and

structure)

 Legal/Policy (enabling environment for production and competition)2

1
Bureau of Plant Industry, http://bpi.da.gov.ph/index.php/hvcdp
2
Department of Agrarian Reform, http://daf.armm.gov.ph/hvcdp/
High-Value Crops are crops that can be optimally and sustainably produced in the area and

which can generate revenues higher than that of traditional crops. Such crops include, but are not

limited to: coffee and cacao, fruit crops (citrus, cashew, guyabano, papaya, mango, pineapple,

strawberry, jackfruit, rambutan, durian, mangosteen, guava, lanzones and watermelon), root

crops (potato and ubi), vegetable crops (asparagus, broccoli, cabbage, celery, carrots,

cauliflower, radish, tomato, bell pepper and patola), legumes (pole sitao, snap beans and garden

pea), spices and condiments (black pepper, garlic, ginger, and onion), and cutflower and

ornamental foliage plants (chrysanthemum, gladiolus, anthuriums, orchids, and statice).3

The State, in assuming the principles that land ownership is a social responsibility,

obliges owners and lessees of agricultural land, as stewards, to cultivate the lands they own or

lease and make the land economically productive on a sustainable and environmentally friendly

manner. As such, the Government has the right to expropriate lands not utilized for the benefit of

the community and the country as a whole. This shall effect an efficient use of land and other

productive resources with due regard to ecological balance and environmental protection, rural

development, equity consideration, mobilization of human resources, and increased agro-

industrial production for the alleviation of poverty and sustainable growth objectives. 4

The Department of Agriculture and the Department of Agrarian Reform, in coordination

with the Department of Environment and Natural Resources and the Department of Interior and

Local Government/Local Government Units and the private sector, determine the areas

nationwide that have comparative advantage in the production of specific high-value crops.

These areas which have been identified as having comparative advantage have priority in the

implementation of this Act. The following are the criteria for an area to have comparative

advantage:
3
Sec 4(b) RA 7900
4
Sec 2, Ibid.
a) Favorable agro-climatic conditions (e.g. land, water resources and climate are suitable for the

crop)

b) Accessibility to markets

c) Availability of support facilities (e.g. irrigation, transport, roads, etc.)

d) Availability of viable groups (e.g. cooperatives and farmers' association with existing

economic projects)5

The farm model adopted by this act allows for farmers to put up economically-sized

farms for high-value crop farming. Farmer members collectively manage individual farms which

includes contracting process and means of production; planning and coordinating crops varieties;

and raising breed, hectarage, distribution and some production measures with reference to the

market it shall serve.6

The High-Value Crops Development Fund (HVCDF), with an initial amount of One

billion pesos (P1,000,000,000), is established for the purpose of providing the funding

requirements of the production, marketing, and processing of high-value crops, and the

establishment of low-cost credit to qualified project proponents. This is sourced from the

Comprehensive Agricultural Loan Fund (CALF) and managed by the Land Bank of the

Philippines (LBP) and the Development Bank of the Philippines (DBP). Other sources of funds,

including but not limited to borrowings from local and international financial institutions, shall

also be considered to further support the program.7

5
Sec I, Rule IV, Implementing Rules & Regulations RA 7900
6
Sec 7, RA 7900
7
Sec 8, Ibid
Section 9 of RA 7900 provides for the following incentives for the proponents of the program:

a) Crop insurance Credit assistance

b) Credit Guarantee

c) Grace period on lease of government lands payments

d) Tax exemption

e) Technical and infrastructure support

d) Post harvest facilities

f) Good seeds and planting materials

e) Fiscal incentives8

The Secretary of the Department of Agriculture shall report to both Houses of Congress on the
status of the High-Value Crops Development Program biannually. The agribusiness development
group of the Department of Agriculture has the task of implementing, coordinating and
monitoring the program.9

8
Sec 9, Ibid.
9
Sec 11, Ibid.