ADDENDUM TO DA ADMINISTRATIVE ORDER (AO) NO. 19, SERIES OF 2008, REVISED IMPLEMENTATION GUIDELINES ON THE UTILIZATION OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND (ACEF)

WHEREAS, the Agricultural Competitiveness Enhancement Fund (ACEF) is
a government-instituted measure for the main objective of increasing
the agricultural sector’s productivity and enabling it to achieve higher
levels of competitiveness;

WHEREAS, Congress enacted into law R.A. 9496, otherwise known as “An
Act to Extend the Utilization of the Agricultural Competitiveness
Enhancement Fund amending R.A. 8178 entitled “An Act Replacing
Quantitative Restrictions on Agricultural Products, Except Rice, with
Tariffs, Creating the Agricultural Competitiveness Enhancement Fund,
and for Other Purposes;”

WHEREAS, there is need to improve the mechanisms and procedures
necessary to efficiently and effectively allocate and disburse the
Agricultural Competitiveness Enhancement Fund (ACEF) in order to achieve
its objective of competitiveness as provided in R.A. 9496;

NOW, THEREFORE, BY AUTHORITY OF SECRETARY ARTHUR C. YAP, I, Atty.
BERNIE G. FONDEVILLA, do hereby order these amendments from DA AO No.
19, series of 2008 that will read as follows:

SECTION 1.

J. Financing. 1. Mode

a. The Agricultural Competitiveness Enhancement Fund (ACEF) shall
be extended as an interest-free loan to eligible proponents the proposed
projects of which are income generating. The Agricultural
Competitiveness Enhancement Fund (ACEF) shall also be extended as a
collateral-free loan, except for those which the Executive Committee
(ExeCom) may require to put up collaterals as loan security. The
Agricultural Competitiveness Enhancement Fund (ACEF) shall be extended
in the form of grant to finance public investments that will increase
the productivity of farmers, subject to approval by the ACEF Execom.

J. Financing. 5. Fund Allocation

The Fund shall be set aside and earmarked as follows:

(1) Seventy percent (70%) for agri-based
production and post-production and processing activities including, but
not limited to, new export industries and agri-related infrastructure
and equipment to achieve modern agricultural practices; for public
information and promotion activities including the establishment of a
principal mechanism therefore to promote the desired agricultural
products and activities and create new market; for technical assistance
and feasibility studies grant; and for public investments that will
increase the productivity of farmers. Maximum of ten percent (10%) of
this will be earmarked for the administrative expenses of the ACEF
enabling committees/secretariat.

2. Twenty percent (20%)
for research and development and commercialization of such, including
the upgrading of research facilities of qualified state universities and
colleges; and

3. Ten percent (10%) to be used for the
funding of a comprehensive scholarship program for agriculture,
forestry, fisheries, and veterinary medicine education.

All other provisions of Administrative Order No. 19, series of 2008, except for the aforementioned provisions shall remain.

This Order shall take effect immediately.

Adopted: 03 Aug.2009

By Authority of the Secretary:

(SGD.) Atty. BERNIE G. FONDEVILLA
Undersecretary and Chief of Staff