Farm Tourism Development Act of 2016: Moving towards a green revolution
To my envy, I remember how my mother used to tell me stories about the green revolution. During her younger days in Davao, my mother would pick fresh crispy vegetables like string beans, tomatoes, eggplants, pechay, camote tops and saluyot leaves right off their backyard. I was told that my grandparents maintained the garden not only to help make both ends meet but also to instill the values of responsibility early on in their young ones. My mother, together with her siblings, had to follow a schedule as to who would water the plants, pull the weeds and cultivate organic waste into the “farm garden” to nourish the soil. Even in those days, the focus on agricultural development at the community level was inculcated.
Recognizing the importance of agriculture in sustaining and enhancing human life, not just in terms of food production, but also in providing livelihood to a major portion of the population, President Benigno S. C. Aquino III signed into law R.A. No. 10816, also known as the “Farm Tourism Development Act of 2016” (the “Act”), on May 23, 2016.
Farm tourism, as defined by the law, is the practice of attracting visitors and tourists to farm areas for production, educational, and recreational purposes which involves any agricultural or fishery-based operation or activity and may also provide a venue for outdoor recreation and accessible family outings.
Apparent from its title, the Act recognizes that combining tourism with agriculture can disseminate the value of agriculture in the economic and cultural development of the country, serve as a catalyst for the development of agriculture and fishery communities, and provide additional income for farmers, farmworkers and fisherfolk. The Act also seeks to promote environmentfriendly, efficient and sustainable farm practices; provide alternative recreation facilities and farm tourism activities for families, students and other clientele; and promote health and wellness with high-quality farm-produced food.
To ensure that the objectives are attained, the Act created the Farm Tourism Development Board under the Department of Tourism (Dot). With the secretaries of the Dot and Department of Agriculture at the helm, acting as chair and vice- chair respectively, the Board shall formulate and set the overall direction for the implementation of a Farm Tourism Strategic Action Plan (the “Plan”) which is a comprehensive set of programs, projects and activities for the growth of farm tourism in the country. The Plan shall be integrated and be made consistent with the National Tourism Development Plan.
The Plan shall cover various areas of concern, such as investment promotion and financing; market research, trends, innovations and information; accreditation of farm tourism camps; market promotion and development; agriculture and fishery research, development and extension; institutional and human resource development; and infrastructure support. It would likewise define the roles and responsibilities of national government agencies, local government units (LGUs), farm tourism operators, tour operators, educational institutions, and other industry stakeholders in its implementation.
In terms of investment promotion and financing, the Dot, the DA and the DTI shall develop programs linking stakeholders in the farm tourism industry, government financial institutions, government-owned or controlled corporations, private banks, financial cooperatives and other lending institutions to increase access to credit for farm tourism.
Moreover, under the Act, incentives under the Organic Agriculture Act of 2010 (RA 10068) may also apply to farm tourism activities, such as: a) Exemption from the payment of duties on the importation of agricultural equipment, machinery and implements as provided under the amended Agriculture and Fisheries Modernization Act; b) Identification by LGUs of local taxes that may be offered as incentives to organic input production and utilization; c) Provision of preferential rates and special window to organic input producers and users at the Land Bank of the Philippines; d) Subsidies for certification fees and other support services to facilitate organic certification; e) Zero-rated value added tax on transactions involving the sales/ purchase of bio-organic products, whether organic inputs or organic produce; and f ) Income Tax Holiday for seven years, starting from the date of registration with the concerned investment promotion agency for organic food and organic input producers.
These incentives may encourage local investors to consider investing some of their funds in organic tourism. Even retiring employees may find it useful to spend their retirement pay in such ventures, just like the one prosperously established by a retired employee in Majayjay, Laguna.
The Board, in consultation with concerned government agencies, LGUs and their leagues, and farm tourism industry stakeholders, has 90 days from the effectivity of the Act to issue the implementing rules and regulations.
With the incoming president’s thrust to develop the countryside, it will be interesting to see the revival of mothballed “green thumb” practices and its transformation thru modern technology. By reintroducing traditional farming knowledge to a fast-paced society, urban dwellers may learn to appreciate a change of lifestyle that embraces a “back to basics” philosophy. By developing farm tourism, we dream that the Philippines will be able to sustain its own agricultural needs, enhance human life by providing livelihood and pursue once again a “clean and green revolution” program.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The firm will not accept any liability arising from the article.