SOP Library
SOP NO:
TS-ES14
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Industry Services (BR)
Area:
Grains Marketing (GM)
Title:
SOP on the Pilot Implementation of the NFA Local Food Security Program
Date Approved/Issued:
08/18/2000
Date Effective:
08/18/2000
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A. Statement of Policies
1. PILOT AREAS
1.1. The Local Food Security (LFS) Program shall be pilot tested in nineteen (19) palay producing provinces as follows:
Region
Province
I Abra
III Tarlac
Zambales
Bataan
Pampanga
IV Romblon
Laguna
V Camarines Norte
Albay
VII Negros Oriental
VIII Northern Leyte
Southern Leyte
Northern Samar
IX Zamboanga City
X Misamis Oriental
Surigao Norte
Agusan Norte
Agusan Sur
XI Davao Oriental
The pilot provinces were selected using the following criteria:
a. there is sufficient water supply;
b. the total irrigated area of the province is not less than 10,000 hectares;
c. rice supply and demand situation is from very critical to less critical, and;
d. the area has a Reformulated Balanced Fertilization (BFS) recommendation by the Bureau of Soils and Water Management (BSWM) which shall serve as guide in correct fertilizer application and in the computation of the required fertilizer input.
2. INFORMATION CAMPAIGN
An information campaign regarding the LFS Program shall be conducted by the NFA Provincial Office in the pilot areas. A three-level meeting with the concerned LGU officials shall be conducted as follows:
a.
First Level
- meeting/consultation with the Provincial Governor and the Provincial Agricultural Officer (PAO) as to the municipalities to be covered by the program.
b.
Second Level
- meeting/consultation with the mayor/s and the Municipal Agricultural Officer/s (MAOs) on the identification of the specific barangays to be covered by the program.
c.
Third Level
- briefing of the barangay chairmen, Agricultural Technician/s (AT) and farmers of the identified barangay/s on the mechanics of the LFS program.
Application form
s shall be distributed to interested farmers during the meeting.
3. FARMER-BENEFICIARIES
3.1. Target program beneficiaries are palay farmers in the nineteen (19) pilot provinces who must be an owner-tiller, tenant-tiller or lease holder of an irrigated farm with an area of 0.5 hectare to 1.5 hectares. The beneficiaries’ rice farms must be located in a more or less contiguous or adjacent areas for easy monitoring and coordination.
3.2. Selection/identification of farmer-beneficiaries shall be done in coordination with the respective Barangay Chairmen of the identified pilot areas and the Municipal Agricultural Officers (MAO) of the concerned municipalities. An LFS Evaluation Committee shall be created in each of the nineteen (19) pilot provinces to screen/evaluates applications of farmers for the program. The committee shall be composed of the NFA Provincial Manager, the PMDO/LFS Coordinator and the Provincial Investigator.
3.3. Prospective FBs shall be required to fill-out an
application form
(Exh. 1) and submit the following documents to the LFS Evaluation Committee at the NFA Provincial Office for verification and evaluation:
a. Owner-tiller
a.1 Title of farm lot;
a.2 Real property Tax Declaration; or
a.3 Stewardship, other documents as proof of ownership.
b. Tenant-tiller/ Lease Holder
b.1 Lease-tenant contract agreement; or
b.2 any certification from DAR/DA that he is the actual tiller or lessee
3.4. Upon approval of their applications, a
Contract Growing Agreement
(CGA) for the LFS Program (Exh. 2) shall be executed individually between the FBs and the concerned NFA Provincial Manager. All CGAs must be notarized.
3.5. The NFA Provincial Office (P.O.) shall maintain a
ledger card
(Exh. 3
) for each FB to record and monitor production loan releases (issuance of inputs and payment of irrigation fee/crop insurance premium) and the FBs’ payment of the production loan. A photocopy of all FBs’
ledger card
s shall be submitted to the EXD at the termination of the program.
4. PACKAGE OF TECHNOLOGY (POT) BRIEFING
4.1. The NFA P.O., in cooperation with BSWM, NIA, PCIC and other concerned government agencies shall conduct a one-day production briefing on the package of technology (POT) in rice production (e.g. land preparation, sowing and transplanting, fertilizer application, pest management, etc.) for the FBs. The POT briefing shall be scheduled immediately after all the FBs have executed their respective CGAs with the NFA Provincial Manager. A sample
program of activities
for the POT briefing is atttached as Exh. 4 for reference.
4.2. A
POT
Briefing Report
(Exh. 5) shall be submitted by the NFA P.O. to the EXD one week after the POT briefing was conducted.
5. PRODUCTION LOAN
5.1. The
Local Food Security Program
(LFS) shall be implemented through a contract growing scheme which shall involve the provision of a production loan to the FBs to be granted
not in cash but strictly in the form of the following
:
a. Production Inputs
a.1. Certified/Registered Palay Seeds
a.2. Commercial Organic Fertilizers
a.3. Complete Fertilizer (14-14-14)
a.4. Ammonium Phosphate (16-20-0)
a.5. Urea or Ammosol (45-0-0/21-0-0)
a.6. Zinc Sulfate (ZnSO4)
a.7. Fungicides
a.8. Insecticides/mollusicides
a.9. Rodenticides
a.10. Weedicides
b. Irrigation Fee
c. Crop Insurance Premium (Farmer’s share)
5.2. The amount of production loan that may be granted to an FB shall be equal to the amount of production inputs granted to him plus the corresponding irrigation fee and the farmer’s share of the crop insurance premium.
Total amount of production loan shall not exceed P14,000.00 per hectare per FB.
5.3. The initial production input requirements of each FB shall be computed by the NFA P.O. based on the Reformulated Balanced Fertilization (BFS) for Irrigated Rice. Additional production inputs may also be given to the FBs during the growth stages of the crop subject to the approval of the concerned NFA P.O.
5.4. The production inputs shall be procured by the NFA and shall be released directly to the FBs while the irrigation fee and the crop insurance premium shall be paid by the NFA P.O. directly to the National Irrigation Administration (NIA) and the Philippine Crop Insurance Corporation (PCIC), respectively.
In no case shall the NFA give cash to the FBs for the aforementioned purposes or for any other purpose relative to the LFS Program
.
5.5. To protect the interest of the agency, A
Memorandum of Agreement
(MOA- Exh. 6) shall be executed between the NFA Administrator and the PCIC President, that in case of crop damages due to natural calamities and other causes, the PCIC shall remit payment for the insured crops directly to the NFA.
5.6. A corresponding lending institution share for the crop insurance premium shall be paid by the NFA. However, it shall not be part of the FBs production loan but shall be charged to the LINGAP-LFS fund.
5.7. The production input requirements of the FBs within the province shall be procured by the concerned NFA Office in accordance with the following provisions of General Memorandum Order No. AO-96-12-001 (NFA Revised Delegation of Authority-Administrative & Financial Matters) as amended by General Memorandum Order No. AO-97-04-001.
a.
Mode of Procurement
Above P50,000.00 to less than 1M - Sealed Canvass
P1M and above - Public Bidding
The Regional Prequalification Bids and Award Committees (RPBACs) shall take charge of sealed bidding and public bidding, whichever is applicable.
a.
Signing Authority for Contracts
Below P100,000 PAO/APM Prov’l.Mgr.
P100,000 to below P1M Prov’l. Mgr/ARM Reg’l. Mgr.
P1M and above Chairman, Reg’l. CBA Reg’l. Mgr.
5.8. Whenever available, the inorganic fertilizers and certified seeds requirements of the FBs shall be procured at the NFA. In case the FBs prefer other sources, such inputs shall be procured only from BSWM accredited organic fertilizer dealers/manufacturers and from Department of Agriculture (DA) accredited seed growers.
5.9. The production inputs shall be delivered and stored at designated warehouse(s) most accessible to the pilot farm areas to facilitate withdrawal of inputs by the FBs.
5.10. Production inputs shall be issued in full (one time only) to the FBs. The FB must comply with the following requirements prior to the issuance of their production inputs:
a. undergo the one-day POT briefing on rice production and post production to be conducted by the NFA- PO in coordination with the BSWM/NIA/PCIC.
b. submit a
Schedule of Farm Activities
(Exh. 7) duly validated by the NFA P.O. during the POT briefing.
5.11. Issuance of the production inputs shall be in accordance with the schedule prepared by the Provincial Office. The FBs shall be advised of their schedule and the designated warehouse where they can withdraw their production inputs. The WS II of the designated withdrawal warehouses shall be furnished with the list of the FBs with corresponding input requirements and their respective withdrawal schedules.
5.12. Receipt and issuance of production inputs by the WS II shall be documented following the usual Warehouse Stock Documentation System. All documents used shall be properly marked “LINGAP-LFS”. A Warehouse Stock Report covering the period from receipt of production inputs to issuance to FBs shall also be prepared by the WS II.
5.13. A
Report on Production Input
Issuance
s
(Exh. 8) shall be prepared by the P.O. after all FBs have been issued their production input requirements. The report shall be submitted to EXD not later than one month after issuance of inputs.
5.14. Payment of Production Loan
a. The amount of production loan extended to the FBs shall be paid in kind (PIK), in palay, not later than two (2) weeks after harvest. The PIK shall be valued based on the NFA support price at the time of payment.
b. Receipt of the PIK shall be documented using the Purchase Receipt (PR) and the Warehouse Stock Receipt (WSR). The PRs/WSRs to be used shall be marked “PIK to LINGAP-LFS” for proper identification.
c. The PR shall serve as evidence of the payments made by the FBs for their production loan. However, a Credit Memo may be issued to the FBs, upon their request, if full payment for the loan has been made.
d. The NFA may also procure, under its regular procurement program, the FB’s marketable surplus in excess of his PIK.
e. The PIK for the production loan inputs shall not be entitled to any procurement incentives ( e.g. CDIF). However, the FBs’ marketable surplus sold to the NFA shall be entitled to incentives as provided in existing NFA SOPs on the grant of procurement incentives.
f. The PIK of the FBs shall be monetized by the NFA using its Cereal Procurement Fund (CPF) and shall form part of the NFA stocks intended for local food security.
g. A
Loan Payment Report
(Exh. 9) indicating the date and the amount paid by the FBs shall be prepared and submitted by the P.O. to EXD one month after harvest period.
6. FUNDING
6.1. The pilot implementation of the LFS Program shall be funded by the NFA Lingap Fund.
6.2. Requests for Fund Remittance of Provincial Offices shall be coursed through the EXD and the PCMU to ensure that remittances do not exceed the fund allocated to each Provincial Office.
6.2.1. Request for remittance of expenses to be incurred for the POT briefing shall be made after all FBs have been identified and their CGAs have been executed. The request shall be supported by the following documents:
Ÿ
Certified photocopies of all approved applications and duly notarized CGAs
Ÿ
Schedule of POT briefing (date, venue, no. of participants) including budgetary requirements
6.2.2. Request for remittance of fund that will cover the FBs’
production loan
shall only be made after the expenses incurred during the POT briefing has been liquidated and the final
list of FBs
with itemized input requirements (Exh. 10 ) has been submitted to EXD.
6.3. Funds remitted shall be liquidated per activity using the prescribed
Statement of Remittance and Disbursement
Form
(Exh. 11A & 11B) to be submitted to EXD in accordance with the following schedule:
Funds for POT briefing
- shall be liquidated by the P.O. one week after the conduct of the briefing and shall be supported by the following:
Ÿ
POT Briefing Report
with list of participants
Ÿ
certified photocopies of vouchers and official receipts
Funds for the
FBs
Production Loan
- shall be liquidated by the P.O. one month after issuance of production inputs duly supported by the following:
Ÿ
Report on Production Input Issuances
Ÿ
certified photocopies of vouchers and official receipts.
6.4. Remittance of
funds
to P.O. shall follow the usual Inter-Branch transactions.
7. ACCOUNTING TREATMENT
To record purchase of Production Inputs
F.O. Books
DR: 8-72-360.32 Inventory-Items for sale- farm inputs.. xxx
DR/CR: 8-81-400 Vouchers Payable ............................... xxx xxx
CR: 8-70-300 Cash-Other Banks, Current ...................... xxx
#
To record issuance to LFS Beneficiaries
F.O. Books
CR: 8-97-802 HOA ........................................................ (xxx)
CR: 8-72-360.32 Inventory-Items for sale-farm inputs . ......... xxx
#
C.O. Books
DR: 8-84-100-25 Trust Liability - BTR-Lingap........... xxx
CR: 8-97-801 FOA.......................... .......................... xxx
#
To record payment of Irrigation Fee and Crop Insurance Premium
FO. Books
CR: 8-97-802 HOA.................................................. (xxx)
DR/CR: 8-81-400 Vouchers Payable ............................. xxx xxx
CR: Cash in Bank, Current ............................................... xxx
#
C.O. Books
DR: 8-84-100-25 Trust Liability - BTR-Lingap ......... xxx
CR: 8-97-801 FOA .......................... ....................... xxx
#
To record the delivery of palay (PIK) by LFS Benefciaries
F.O. Books
DR: 8-72-360.1 Inventory Items for Sale- Palay ............. xxx
CR: 8-97-802 HOA ................................................................. xxx
#
C.O. Books
CR: 8-97-801 FOA ................................................................ (xxx)
CR: 8-84-100.25 Trust Liability-BTR-Lingap............................. xxx
#
Fund transfer from Account CPF to Lingap Fund shall be effected.
8. SUPERVISION AND MONITORING
8.1. The Extension Department shall be responsible for the overall supervision and monitoring of the program. An area coordinator shall be assigned for Luzon, Visayas and Mindanao to closely monitor the pilot implementation of the program.
8.2. On the field level, the Provincial Manager shall be responsible for the supervision and monitoring of the program. The Provincial Marketing Development Officer (PMDO) shall be designated as LFS Coordinator who shall closely monitor the implementation of the program.
8.3. To ensure the smooth implementation of the program, the NFA shall coordinate with other government entities/agencies that specialize in rice production to provide the necessary technical assistance for the program, e.g.:
a. The Bureau of Soil and Water Management (BSWM) shall be asked to provide the necessary Package of Technology (POT) in rice production that will be used by the
FBs
. The BSWM shall also conduct soil analysis on the FBs ricefarms to evaluate any soil improvement and to have a record of its soil fertility. A
Memorandum of Agreement
shall be executed for this purpose between the NFA Administrator and the BSWM Executive Director (Exh. 12 ).
b. The Municipal Agricultural Officer (MAO) shall be asked to assist the Provincial Office in monitoring the
farming activities
of the FBs and provide technical assistance to the FBs, if necessary.
8.4. A Production Aide shall be hired by the NFA Provincial Office on a job-order basis to assist the PMDO/LFS Coordinator in the supervision and monitoring of activities of the FBs.
8.4.1. The Production Aide must be an agriculture graduate preferably major in agronomy with experience in rice production.
8.4.2. The Production Aide shall be hired for a period of five months and shall be covered by a
Contract of Services
(Exh.13) which shall be executed between the Production Aide and the concerned NFA Prov’l. Manager.
8.5. A Calendar of Farm Activities (Exh. 14 ) shall be prepared and submitted by the NFA P.O. to EXD one week after the POT briefing. The Calendar which shall be based on the Schedule of
Farming Activities
submitted by the FBs during the POT briefing shall serve as a guide for both the NFA P.O. and EXD in effectively monitoring the accomplishments of the FBs.
8.6. Farmer-Beneficiaries shall be required to submit to the Provincial Office a monthly
Farm Operations Report
(Exh. 15). The PMDO/Production Aide shall regularly conduct field inspection to validate the data in the
Farm Operations Report
s of the FBs and to closely monitor the progress of
farming activities
of the FBs which must be in accordance with the
Calendar
of
Farming Activities
.
8.7. A
Report on Planting Activities
(Exh. 16) and
Report on Harvesting Activitie
s
(Exh. 17) shall be prepared by the P.O. to be submitted to EXD one week after the actual planting/harvesting period.
9. REPORTING SYSTEM
9.1. The P.O. shall prepare a weekly report to be submitted to the EXD every Monday using the lotus notes. In areas where the lotus notes is not available, the weekly report shall be sent through radio/wire messages. The report shall cover activities undertaken during the previous week. For monitoring and reporting purposes, implementation of the LFS program shall be divided in several stages as follows:
Stage 1 - Information Campaign
Stage 2 - Identification/Selection of Beneficiaries
Stage 3 - Conduct of POT Briefing
Stage 4 - Procurement of Production Inputs
Stage 5 - Issuance of Production Inputs
Stage 6 - Monitoring of Farm Activities
Stage 7 - Payment of Loan
Stage 8 - Preparation of
Terminal Report
9.2. The P.O., through its weekly report, shall update the EXD of the status of the implementation of the LFS program at every stage. Please refer to the attached
Weekly Report Format
#s 1-7
for reference.
9.3. A
summary of reports and documents
to be prepared and submitted at every stage of implementation of the program is provided as
Annex 1
.
B. Responsibilities
1. Information Campaign
PM/PMDO
a. conducts information campaign on the pilot areas
Ÿ
conducts meeting/consultation with the Provincial Governor and Provincial Agricultural Officers (PAOs) on the identification of municipalities to be covered by the program
Ÿ
conducts meeting/consultation with the mayors and Municipal Agricultural Officers (PAOs) of identified municipalities on the identification of barangays to be covered by the program
Ÿ
briefs the barangay chairmen and the farmers of identified barangays on the mechanics of the LFS program. Disseminates
application form
s
to farmers.
b. coordinates with the concerned government agencies (BSWM, PCIC, NIA, LGU-MAO) for technical assistance and other support services that they can extend for the program.
c. submits weekly report (through lotus notes or wire) to EXD cc RO re: accomplishments of PO on information campaign conducted.
2. Identification/Selection of Farmer-Beneficiaries
LFS Evaluation Committee
a.. screens/processes applications of farmers.
b. evaluates and approves applications of qualified applicants
Provincial Investigator
a. verifies data/authenticity of documents submitted by the applicants.
b. conducts site inspection to determine suitability of farm lots for the program.
PMDO
a. computes production inputs requirements of individual FBs and the corresponding irrigation fee and crop insurance premium to determine amount of
production loan
to be granted to each FB.
b. submits official
list of FBs
including itemized production input requirements to
EXD
.
Furnishes EXD with photocopies of all approved applications and duly notarized CGAs
PM
a. verifies and approves amount of
production loan
to be granted to FBs
b. executes CGA with each FB
3. Conduct of Package of Technology (POT) Briefing
PMDO
a. coordinates with BSWM/NIA/PCIC and schedules briefing of FBs on rice production technology that will be applied under the program
b. requests EXD for remittance of fund for the conduct of POT briefing
c. conducts POT briefing as scheduled
d. prepares POT Briefing Report and SRDF to liquidate the funds remitted for the activity. Submits to EXD one week after briefing.
4. Hiring of Production Aide
EXD
a. Informs concerned Regional Offices (R.O.) of the required number of Production Aide to be hired on a job order basis to assist in the implementation of the LFS within the region.
b. Furnishes R.O. with the job specifications of the Production Aide position and the duration of hiring.
Regional Manager
Authorizes hiring of Production Aide in the LFS pilot provinces within the region.
PM
a. Hires Production Aide based on job specifications provided by RO/EXD..
b. Executes Contract of Services with the Production Aide.
c. Informs R.O. of hiringof selected applicant for confirmation. Indicates date of effectivity of hiring and the date when
contract of services
was signed.
EXD
Recommends to PCMU/DTBFM remittance of funds to cover hiring of Production Aide.
5. Remittance of Funds
EXD
Checks if P.O. has complied with the requirements for fund remittance as provided in Section II.A.6 of this SOP. If already complied, endorses requests for remittance of fund of POs to Executive Director- NFA LINGAP
EXECUTIVE DIRECTOR - PCMU
Recommends to DTBFM remittance of funds to NFA PO
DTBFM
Remits fund to concerned POs as recommended by the Executive Director-NFA LINGAP
6. Procurement of Production Inputs
PMDO
Requests EXD for remittance of funds to cover production loan of FBs
P.O/R.O
.
a. purchases required production inputs following existing NFA Purchasing system
b. ensures that delivery of production inputs synchronizes with its schedule of release
PMDO
Informs EXD, through its weekly reports, the name(s) of winning bidder(s), contract amount and date contract was awarded.
7. Issuance of Production Inputs
PMDO
a. prepares schedule of issuance of production inputs to FBs.
b. advises FBs of the date of issuance of production inputs and the designated withdrawal warehouse
c. furnishes WS II with a copy of schedule of production issuance
d. facilitates issuance of Authority to Issue (AI) covering the production inputs to be issued to the FBs and sees to it that AIs used are marked “LINGAP-LFS.”
e. submits SRDF for production loan complete with the necessary supporting documents to EXD to liquidate funds remitted to cover FBs’ production loan.
WS II of designated withdrawal warehouse
a. documents receipt of production inputs using WSR properly marked with “LINGAP-LFS.”
b. issues production inputs to FBs as scheduled.
c. documents issuance of inputs using WSI properly marked with “LINGAP-LFS.”
d. prepares stock inventory report for the production inputs.
FARMER-BENEFICIARIES
Receives production inputs and signs on the WSR.
8. Monitoring of
Farming Activities
PMDO/PRODUCTION AIDE
a. coordinates closely with the BSWM representative, MAOs and Agricultural Technician (AT) participating in the program to ensure that the necessary technical assistance are provided to the FBs from land preparation stage until harvest time.
b. checks if FBs farm activities are in accordance with schedule, notes discrepancies and recommends remedial actions.
c. monitors submission of FBs of Monthly Report on Farm Operations.
d. prepares status report on the planting and harvesting activities of FBs to be submitted to EXD.
9. Collection of Loan Payment (PIK)
PM
a. Designates warehouse/collection points where FBs shall deliver their PIK.
b. Ensures availability of Post-Harvest facilities such as threshers, driers, trucks and empty sacks to FBs as provided in the CGA.
PMDO
a. computes palay equivalent of the production loan of FBs based on the prevailing NFA support price at time of payment.
b. advises FBs as to where their PIK will be delivered.
c. monitors payment of FBs and ensures that complete payment is made not later than two (2) weeks after harvest.
d. coordinates closely with the Operations Section regarding acceptance of PIK of FBs and with the Accounting Section for the issuance of the Credit Memo.
WSII/Team Leader
Accepts PIK of FBs. Documents receipt of PIK using PR properly marked as “PIK to LINGAP-LFS.”
PO Accounting Section
Issues Credit Memo to FB upon their request if full payment has been made.
10. Terminal Report Preparation
PMDO
a. prepares and submits a terminal report on the LFS Program to EXD cc RO.
b. submits certified photocopies of FBs
ledger card
s to EXD together with the terminal report.
EXD
a. prepares and submits a Consolidated Terminal Report of the LFS Program to the PCMU cc ODAO and OAAS.
b. forwards certified photocopies of FBs’
ledger card
s to PCMU.
PCMU
Prepares and submits an Executive Summary of the Consolidated Terminal Report of the LFS Program to the LINGAP-Program Advisory Board (PAB).
C.
Flowchart
-
Overview of the LFS Program
(Annex 2)
This SOP shall take effect on
August 18, 2000.
III. RESPONSIBILITIES
IV. FLOW CHART
Top Page
EXHIBITS
NFA Lingap Para Sa Mahihirap Farmers Alleviation Program
Application Form
Contract Growing Agreement
Exhibit 3 - Lingap-Local Food Security Program
Program of Activities
Local Food Security Program
Memorandum of Agreement
Schedule of Farm Activities
Report on Production Inputs Issuances
Local Food Security Program
Loan Payment Report
List of Farmer-Beneficiaries
Statement of Remittances and Disposition of Funds
Local Food Security Program
Memorandum of Agreement (Exh 12)
Contract of Services
Calendar of Farming Activities
Farm Operations Report
Report on Planting Activities
Report on Harvesting Activities
Weekly Repot Format #1-7
Summary of Reports/Documents
Overview of the Local Food Security Program