SOP Exhibits
Title:Memorandum of Agreement (Exh 12)

SOP Number : TS-ES14

EXHIBIT 12
MEMORANDUM OF AGREEMENT


This Memorandum of Agreement is entered into this _____ day of _______________ at Quezon City, Philippines, by and between :

The NATIONAL FOOD AUTHORITY (NFA), a government Agency created pursuant to Presidential Decree No. 4, as amended with principal office at 101 Matimyas Building, E. Rodriguez Sr. Avenue, Quezon City, duly represented herein by its Administrator, EDUARDO NONATO . JOSON II, hereinafter referred to as NFA ;

and

The BUREAU OF SOILS AND WATER MANAGEMENT (BSWM) a government bureau under the department of Agriculture, duly organized under existing laws with principal office at BSWM Bldg., Elliptical Road, Diliman, Quezon City, represented herein by its Executive Director ROGELIO N. CONCEPTION hereinafter referred to as BSWM ;
W I T N E S S E T H

WHEREAS, one of the major development agenda of the government is poverty eradication, and to address this problem, President Joseph E. Estrada issued executive Order No. 92 which earmarked P2.5 Billion in the 1999 General Appropriations Act (GAAA) for Lingap Para sa Mahihirap Program (or Lingap Fund) to be used exclusively for the delivery of the minimum basic needs of the poor communities and the disadvantaged sectors ;

WHEREAS, the Lingap Paras sa Mahihirap Program of the NFA shall be implemented through its four component projects which will focus on food security and price support for rice and corn namely : a) e-TRADE Sari-Sari Store, b) Emergency Relief Assistance Project, c) Rice Subsidy Project and d) Farmers'

WHEREAS, the Farmers' Alleviations Project shall be implemented to help marginal farmer-beneficiaries through : a) provision of post-harvest portable sheets, 2) custom hiring of the NFA's post-harvest facilities, 3) procurement of palay and corn produce of farmer-beneficiaries, and 4) local food security program;

WHEREAS, the Local Food Security Program of the NFA is implemented through contract growing scheme with farmer-beneficiaries who are cultivating a farm area of 0.5 to 1.5 hectares by providing them loan in the form of inputs and other support services ;

WHEREAS, given the right amount of production inputs and support services, these farmer-beneficiaries could produce a considerable quantity of palay which the agency could procure to augment the food security stocks in their particular area and insure a ready market price for their produce ;

WHEREAS, helping the farmer-beneficiaries increase their production will hopefully uplift their standard of living in fulfillment of the President's poverty eradication program ;

WHEREAS, a correct fertilizer application and a balance soil fertility are two of the support services under the Local Food Program that can be extended by NFA to farmer-beneficiaries in helping them increase their production ;

WHEREAS, the BSWM, a government agency created for the purpose of improving the efficiency and production of farmers shall assist in the implementation of the program by showing its farmer-beneficiaries the relative advantage of using the Balanced Fertilization Strategy (BFS) to restore balance soil fertility ;

NOW, THEREFORE, for and in consideration of the foregoing, and of the conditions hereinafter set forth, the BSWM shall conduct briefing to FARMER-BENEFICIARIES of the LFS Program of NFA on the package of technology in rice production subject to the following terms and conditions to wit :

I. OBLIGATIONS OF BSWM

1. Shall provide skilled and trained personnel to conduct a briefing to farmer-beneficiaries of LPS Program on the package of technology (POT) in rice production ;

2. Shall conduct soil analysis on the rice field of the farmer-beneficiary after harvesting to evaluate soil improvement (using the BFS) and to monitor and assess its soil fertility,

3. Shall provide technical assistance (through their personnel assigned in the area) to farmer-beneficiaries particularly in rice production technology (e.g. fertilizer application, pest management, etc.).

II. OBLIGATIONS OF NFA

1. Shall provide service vehicles and meals to the BSWM personnel conducting briefing the POT of Rice Production.

2. Shall provide Certificate of Appreciation to the BSWM personnel who conducted briefing on POT in Rice Production and provide technical assistance to farmer-beneficiaries.

III. COMMON UNDERTAKING

1. The parties shall from time to time issue implementing guidelines for the proper implementation of this Agreement which shall form an integral part hereof.

2. The parties agree to initially adopt the guidelines on the Local Food Security Program in order to effectively implement the provisions of this Memorandum of Agreement.