Business World

Farm Tourism Developmen­t Act of 2016: Moving towards a green revolution

- MARIANNE I. FUENTES

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.

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