DA chief optimistic on passage of coco trust fund bill by year-end

THE Department of Agriculture (DA) is optimistic that a bill creating the coconut farmers’ trust fund would be passed by yearend after President Duterte prodded lawmakers to pass the overdue measure.

In a virtual news briefing, Agriculture Secretary William D. Dar said the passage of the required measure that would set up the trust fund and utilize the P90-billion coconut-levy fund this year is a “realistic target.”

Relatedly, Sen. Cynthia A. Villar, who chairs the Senate agriculture committee, endorsed early passage of a new draft of the measure, which Duterte had vetoed in 2019 for including provisions he deemed violative of the Constitution.

Villar sponsored Senate Bill 1396 under Committee Report 65 or “An Act Creating the Coconut Farmers and Industry Trust Fund, Providing for Its Management and Utilization, Reconstituting for the Purpose the Philippine Coconut Authority Board, And for Other Purposes” is in substitution of Senate Bill 31, 266, 1052, and 1127 with herself and fellow Senators Francis “Kiko” Pangilinan, Ralph G. Recto, and Imee R. Marcos as authors.

In the new bill, The Coconut Farmers and Industry Trust Fund will be managed and disbursed in accordance with the Coconut Farmers and Industry Development Plan to be

implemented by the Philippine Coconut Authority (PCA), as approved by the President. The plan shall set how the coconut industry will be rehabilitated in the next 99 years, which is the suggested lifespan of the Trust Fund.

It was not the first time that Duterte made such a pronouncement in his State of the Nation Address (Sona). In fact, the passage of a law that would utilize the coco-levy fund was one of his campaign promises back in 2016.

In 2019, Duterte vetoed a bill creating the said fund mechanism, arguing that certain provisions of Congressapproved version of the proposed law violated the Constitution.

The President said the bill is “lacking in vital safeguards to avoid the repetition of painful mistakes committed in the past.”

Last Monday, however, at his fifth Sona, he signaled a certain urgency for a redrafted measure: “We must utilize the coconut levy for the welfare of coconut farmers and development of the coconut industry.”

For his part, Dar said lawmakers must take into consideration the contents of the President’s veto message last year to avoid another veto.

Dar said the DA proposed that earnings from the trust fund be used for productivity enhancement projects, social protection programs, empowerment of coconut farmers and cooperatives and infrastructure development.

“What is necessary is to modernize the coconut industry with the belief that the interest earnings of the levy will be utilized annually for the next 20 years continuously,” he said.

“It is the right time to unlock the potentials of the coconut industry, which is just contributing 4 percent of the gross value added in agriculture,” he added.

Dar said they are confident that the law creating the trust fund would now be passed, since there is a “higher level of enthusiasm” between the executive and legislative branches of government.

“We will work with both houses of Congress to make the passage of the legislation of the coco levy a reality,” he added.

In his speech, Duterte told Congress “to sort out” the best possible way to utilize the coco levy, adding that he will not make any suggestions about the matter.

“I leave it to Congress to decide on what to do with it,” he said.

The latest Philippine Coconut Authority (PCA) data count about 2.5 million coconut farmers nationwide with 69 out of 82 provinces of the country being coconut producers.

Overdue–villar

IN welcoming Duterte’s call, Villar echoed the need to utilize the coconut levy fund “for the welfare of coconut farmers and the development of the coconut industry.”

Villar has also been pushing for the release and utilization of the coco levy since 2016. The coco levy refers to the taxes imposed on coconut farmers from 1971 to 1983. The amount collected is now estimated to be P105 billion.

“Like the President, I believe that the urgent utilization of the coconut-levy fund will help uplift the lives of coconut farmers. It is long overdue, the monies of our coconut farmers, which they rightfully own, will also benefit the coconut industry, not only the 3.5 million coconut farmers,” said Villar.

The Senate Committee on Agriculture and Food chairman had sponsored the revised version of the bill on May 28, 2020, and plenary discussion of the legislation has started.

“The bill was re-filed with some modifications, taking into consideration the inputs being suggested by the executive branch of government so it will not be vetoed again. We are confident that it will already be enacted into law, given the President’s support,” said Villar.

Immediately upon enactment into law, the Bureau of the Treasury shall transfer P5 billion to the Trust Fund and another P5 billion shall be initially allocated to the PCA.

The Trust Fund shall be used for provisions of the establishment of facilities essential to the industry, empowerment of coconut farmers’ organizations and cooperatives, farm improvement to encourage selfsufficiency, scholarship program, and health and medical program for industry members.