Eastern Iguig ARC Water Supply System Completed

The Department of Agrarian Reform (DAR) has completed the construction and is ready to turn-over a Potable  Water Supply System (Level II) project at barangay Sta. Barbara, a component barangay of Eastern Iguig Agrarian Reform Community (Eastern Iguig ARC) in Iguig, Cagayan.

The Eastern Iguig ARC  Potable Water Supply project was funded by the Agrarian Reform Infrastructure Project III (ARISP-III)-Department of Agrarian Reform (DAR) and the Local Government Unit (LGU) of Iguig, Cagayan with a total project cost of P3,707,530.73 and is expected to benefit some 647 agrarian reform beneficiary households.

The potable water system in the ARC will significantly decrease the incidence of water-borne diseases among school children. It will also provide water for vegetable gardening activities and opportunities for rural enterprises among farming households in the area resulting to increase in income. cds/mtb

Php15M Farm-to-Market Road Completed in Iguig, Cagayan

The Department of Agrarian Reform (DAR) is scheduled to turn-over sometime in July 2012 in favor of the Local Government Unit (LGU) of Iguig in Cagayan province a 4.536-kilometer Farm-to-Market Road (FMR) traversing the barangays/villages of Minanga Sur, Sta. Barbara and San Esteban, which are also the component barangays of EASTERN IGUIG AGRARIAN REFORM COMMUNITY (Eastern Iguig ARC).

An Agrarian Reform Community (ARC) is a barangay at the minimum or a cluster of contiguous barangays where there is a critical mass of farmers and farm workers awaiting the full implementation of agrarian reform. The farmers and the farm workers will anchor the integrated development of the area.

Farm-to-Market Roads are some of the support services being implemented under the Comprehensive Agrarian Reform Program (CARP) which traditionally serves to connect rural or agricultural areas to market towns. In this case, from Eastern Iguig ARC to Tuguegarao City, where the major markets and distribution centers are located.

The concrete farm-to-market road will provide the agrarian farmer-beneficiaries, the members of their households  and the community in general with an all-weather barangay road and will also significantly help reduce the farmers’ costs of transporting their goods as well as their travel time to the market and trading centers, also, it will substantially increase their income due to savings from transport costs, lesser damage/spoilage to their goods, etc.

There are approximately 1,083 households who will benefit from the project at a cost of P15,498,684.90 funded by the Japan International Cooperation Agency (JICA)-Agrarian Reform Infrastructure Project-III (ARISP-III), Local Government Unit of Iguig (LGU-Iguig) and the Department of Agrarian Reform (DAR).

The completion of the concrete farm-to-market road will not only improve the living conditions of the people in Eastern Iguig ARC and its neighboring barangays/villages but it will also open more opportunities for economic development of the area. cds/mtb

Cooperatives: A New Perspective

I have always believed that one way for the Filipinos to rise from poverty is to be an entrepreneur. But I always hear that a major hindrance to becoming an entrepreneur is the perennial lack of capital for those who are interested to engage in some kind of business enterprise. Maybe unknown to them is the alternative of associating or organizing a pool of people who are similarly interested to pursue a business through a cooperative enterprise. In this way, a core number of individuals could pool money, human resources and talent to build capital, and work together to produce more goods and increase income.

            There are more than twenty thousand cooperatives operating in the Philippines as of October 2011 with a total membership of more than eleven million people composed of farmers, fisherfolk, women, workers, vendors, teachers, government employees, the military, rebel-returnees, and from other sectors who are mostly poor and disadvantaged but they believe in cooperativism and seriously desire to build a better life for them and their families through association and cooperation. These cooperatives in the Philippines have a combined assets of PHP158.6 billion.

            On a global perspective, reports from the International Cooperative Alliance (ICA) indicate that over one billion people are members of cooperatives. In Asia, there are 45.3 million members of cooperatives. In Indonesia, 27.5% of families are members of cooperatives. In Japan, 33% of families are members of cooperatives. In Singapore, 50% of the population are members of cooperatives. Membership in cooperatives have increased because of the benefits they derive from being members.

            The contributions of cooperatives into the national economy are also steadily increasing. Agricultural cooperatives in Japan, for instance, agricultural cooperatives generate outputs equivalent to US$90 billion. This may be due to the fact that 91% of the farmers are members of cooperatives. In South Korea, 90% of farmers are members of agricultural cooperatives which have contributed to an output of US$11 billion. Fishery cooperatives in South Korea have a market share of 71%. In Vietnam, cooperatives contribute 8.6% of the country’s gross domestic product. In the Philippines, the cooperative sector is still a growing sector which contributed 4.2% of the country’s gross regional product in 2007. Cooperatives contribute generating and maintaining employment. Worldwide, around one hundred million jobs are provided by cooperatives, which is 20% more than multinational business enterprises.   In the United States, 30,000 cooperatives provide more than 2 million jobs. In Canada, over 155,000 are employed by the sector. In Indonesia, cooperatives provide jobs to 288,600 individuals. Philippine cooperatives, on the other hand, provided jobs to 102, 977 people in 2007, about 0.30% of the country’s labor force. 

            When I attended the Cooperative Regional Conference in Echague, Isabela sometime in  2012, I was awed by the large number of people who are active members of cooperatives in the Cagayan Valley Region. During that meeting, we were provided with information about what is actually happening in Congress, about the efforts and bills introduced to harness and support the collective efforts to strengthen cooperatives of agrarian reform beneficiaries (ARBs), of agricultural cooperatives, and to consolidate these cooperatives to maximize benefits from economies of scale. There was also a suggestion for the cooperative members to support Senatorial candidates  are sympathetic to the cooperative sector (although in hushed tones).

            However, there are were issues that came out, specially local and national officials who are stifling the growth of cooperatives by disregarding or refusing to honor the tax benefits and privileges that cooperatives are expressly entitled to under the laws of the Philippines. Some agencies of the government like the Bureau of Internal Revenue (BIR) and some officials of Local Government Units (LGUs) have various interpretations of the law and deliberately make it difficult for cooperatives to obtain the Tax Exemption Certificate.

            While it is clear that the spirit of the law is for cooperatives to be given preferential tax treatment as expressed in the law, that is, Republic Act No. 6938, now Republic Act No. 9520, this is not happening in some parts of the Philippines. Even the Supreme Court, in the cases that it has decided ruled that, “cooperatives, including their members, deserve a preferential tax treatment because of the vital role they play in the attainment of economic development and social justice. Thus, although taxes are the lifeblood of the government, the State’s power to tax must give way to foster the creation and growth of cooperatives.”  Justice Isagani A. Cruz, as quoted by Rep. Jose R. Ping-Ay in one of his speeches in Congress, said that: “The power of taxation, while indispensable, is not absolute and may be subordinated to the demands of social justice.” 

         After all, it is true that sovereign power resides in the people, and all government authority emanates from them. Is it really? cds