DRAFT ORDINANCE APPROPRIATING AT LEAST 20% OF R.A.

7171 FOR THE

PURCHASE OF FARM INPUTS, FARM EQUIPMENTS AND OTHER ASSISTANCE
THAT WILL DIRECTLY BENEFIT THE FARMERS OF THE PROVINCE OF
ILOCOS SUR
AUTHORED BY
HON. LEOPOLDO G. GIRONELLA, JR
WHEREAS, Section 5, Article XIII of the 1987 Constitution provides that “the State shall
recognize the right of farmers, farmworkers, and landowners, as well as cooperatives, and other
independent farmers’ organizations to participate in the planning, organization, and management
of the program, and shall provide support to agriculture through appropriate technology and
research, and adequate financial, production, marketing, and other support services.”
WHEREAS, it is the declared policy of the government to promote the development of
the tobacco industry and to promote the quality of life of all those who depend upon the industry
and source of livelihood especially the tobacco farmers.

WHEREAS, consistent with Section 33 of the Local Government Code of 1991 (RA
7160) which provides for cooperative undertakings among Local Government Units (LGUs),
they may upon approval of the sanggunian concerned after a public hearing conducted for the
purpose, contribute funds, real estate, equipment, and other kinds of property and appoint or
assign personnel under such terms and conditions as may be agreed upon by the participating
local units through Memorandum of Agreement;

WHEREAS, Republic Act No. 7171 or an Act to Promote the Development of the farmer
in the Virginia Tobacco Producing Provinces was enacted with the objective of providing
special support to the Virginia tobacco-producing provinces to be utilized to advance the self-
reliance of the tobacco farmers;

WHEREAS, as per RA 7171, 15% of excise taxes from locally manufactured Virginia-
type cigarettes shall be allotted for a special support fund for tobacco farmers who are “the
nucleus of an industry which generates a sizeable income;”

WHEREAS, pursuant to the said law, tobacco funds can be utilized to develop the
capacity and capability of tobacco farmers through the following: a. Cooperative projects that
will enhance the quality of cigarettes, increase productivity and the market, and increase the
income of farmers; b. Livelihood projects, particularly the development of alternative farming
system to enhance farmers' income; c. Agro-industrial projects that will enable tobacco farmers
in the Virginia tobacco-producing provinces to be involved in the management and subsequent
ownership of these projects such as post-harvest and secondary processing like cigarette
manufacturing and by-product utilization; and d. Infrastructure projects such as farm-to-market
roads to ease transportation and lessen costs;

WHEREAS, pursuant to the Department of Budget and Management (DBM) Local

Budget Memorandum (LBM) No. 84, issued on November 22, 2021, which provides for the
guidelines on the release and utilization of the shares of Local Government Units (LGUs) from
the FY 2019 collections of excise tax on locally manufactured Virginia-type cigarettes under RA
7171, the programs and projects to be implemented by the beneficiary LGUs from their
respective shares from tobacco excise taxes shall be in line with the policies, programs and
priorities set in the Agricultural and Fisheries Modernization Program and the Road Map for the
Philippine Tobacco Industry, adopted by the DA and NTA for the period;

NOW THEREFORE, on motion, duly seconded;

BE IT ORDAINED, by the Sangguniang Panlalawigan of Ilocos Sur, in session

assembled that:
SECTION 1. Title. This Ordinance shall be known as the “ORDINANCE APPROPRIATING
AT LEAST 20% OF R.A. 7171 FOR THE PURCHASE OF FARM INPUTS, FARM
EQUIPMENTS AND OTHER ASSISTANCE THAT WILL DIRECTLY BENEFIT THE
FARMERS OF THE PROVINCE OF ILOCOS SUR.”

SECTION 2. Definition of Terms. For the purpose of this Ordinance, the following terms shall
mean:

(a) “Tobacco Farmers” shall mean those who cultivates and grows Virginia Tobacco.

(b) Farmers' organization" refers to farmers' cooperatives, associations, or corporations

duly registered with appropriate government agencies and which are composed primarily
of small agricultural producers, farmers, farmworkers, and other agrarian reform
beneficiaries who voluntarily join together to form business enterprises which they
themselves own, control and patronize

(c) “Farm Inputs” shall refer to resources that are used in farm production, such as
chemicals, equipment, feed, seed, and energy.

(d) “Farm Equipments” shall refer to farm machinery, mechanical devices, including
tractors and implements, used in farming to save labour. Farm machines include a great
variety of devices with a wide range of complexity: from simple hand-held implements
used since prehistoric times to the complex harvesters of modern mechanized agriculture

SECTION 3. Coverage. This Ordinance shall cover all tobacco farmers, farmer associations,
registered farmer-cooperatives and all farmer-constituents in the province of Ilocos Sur.

SECTION 4. Policy. It is the declared policy of the province to promote the development of the
tobacco industry and to promote the quality of life of all those who depend upon the industry
and source of livelihood especially the tobacco farmers.

SECTION 5. Purpose. It is the purpose of this ordinance to provide the farmers in the Province
of Ilocos Sur sustainable resources, equipments and projects that will directly benefit them in
accordance with RA 7171 and the prescribed guidelines on its utilization

SECTION 6. Mandatory Provision. There shall be allocated at least 20% from the share of the
province from the Republic Act (RA) 7171 to purchase farm inputs, farm equipments and other
projects that will directly benefit the tobacco farmers in the province of Ilocos Sur;

SECTION 7. Repealing Clause. All other ordinances, orders, issuances, rules and regulations,
which are inconsistent with the provisions of this Ordinance are hereby repealed, amended or
modified accordingly.

SECTION 8. Effectivity. This Ordinance shall take effect ten immediately upon compliance of
the mandatory posting and publication requirements prescribed under RA 7160, otherwise
known as the Local Government Code..