Implementing Guidelines of the Special Area for Agricultural Development (SAAD) Program for FY 2019-2022

February 28, 2019

DA MEMORANDUM CIRCULAR NO. 03, S. 2019

I. Introduction

This Memorandum Circular aims to enhance the implementation of the SPECIAL AREA FOR AGRICULTURAL DEVELOPMENT (SAAD) PROGRAM. Specifically, it spells out the program's rationale, objectives, framework, eligibility criteria implementation mechanics, duration, coverage, funding, program management and other implementation requirements. HTcADC

II. Rationale

The Department of Agriculture (DA) is the government agency in-charge of food security and making food accessible to all. This obligation of the State is most critical to the poorest of the poor, who could barely eat three square meals a day. While other agencies of the State, such as the Department of Social Welfare and Development (DSWD) provides assistance in form of cash subsidies and livelihood support to this sector, the DA also saw it fit to provide a program that shall cater to this marginalized sector, particularly those engaged in agriculture and fisheries.

Poverty incidence in the Philippines is greatest in the rural areas where people rely mainly on agriculture and fisheries as their source of livelihood. The DA currently implements six banner programs, namely, rice, corn, high value crops, livestock fisheries and organic agriculture in its' bid to boost national production of these commodities. However, due to the focus on production potentials, several areas including those which are inaccessible, lacking in infrastructure and where the poorest of the poor generally resides, are often neglected.

The SAAD program hopes to complement the DA national banner programs in two ways. First, SAAD shall provide interventions in areas not reached by the regular DA programs. Second, SAAD may provide interventions and schemes which are not part of the DA regular programs.

In line with the DA mandate to uplift the socio-economic situation of farmers, SAAD shall likewise assist beneficiaries to organize an efficient production, post-harvest and marketing process to improve their gains from farming and fisheries. Cluster production and community agri-enterprises along existing supply chains shall be encouraged. CAIHTE

III. Objectives

A. General:

To help alleviate poverty in the areas it operates through provision of agricultural and related interventions to the poor in the farming and fisheries sector.

B. Specific:

1. To complement the DA regular programs in terms of beneficiaries and interventions;

2. To improve food production for household consumption and commercial purpose in areas of operation; and

3. To assist beneficiaries establish communal agri-enterprises.

IV. Program Framework

Activities	Outputs	Outcomes	Impact
A. Program Management   1. Formulation of Plans and budget 2. Procurement of supplies and materials 3. Hiring of staff 4. Coordination with LGUs, agencies, and other stakeholders 5. Formulation and updating of manual of operations 6. Monitoring and evaluation 7. Conduct of meetings	1. Plans and budget formulated and secured 2. Established procurement plans 3. Hired staff at provincial, regional, and national level 4. Manual of operations formulated and updated 5. Partnerships and agreements established 6. M & E system established 7. Meeting reports	3. Efficient, effective, timely, and properly documented project implementation
B. Social Preparation Component   1. Community organizing 2. Capability building 3. Project orientation 4. Consultation workshops and meetings	1. Communities organized and capacitated 2. Capacitated partner-beneficiaries	2. Improved farm production and productivity through enhanced farming skills, expansion in production areas, and improvement in farm technologies	1. Improved household food consumption of partner-beneficiaries   2. Increased income and improved economic status of partner-beneficiaries
C. Production and Livelihood Component   1. Provision of agri-inputs, tools, machineries, facilities, and equipment 2. Provision of post-production facilities and equipment 3. Conduct of technical trainings	1. Agri-inputs, tools, machineries, facilities, and equipment distributed 2. Post-production machineries and equipment distributed and established
D. Marketing Assistance and Enterprise Development   1. Local market study 2. Conduct of technical trainings on entrepreneurship and value-adding 3. Provision of logistics support 4. Audit of livelihood enterprises	1. Potential markets identified and linkage established 2. Communal agri-enterprise established and working	3. Increased volume of sales through expanded access to market

 

V. Beneficiary Eligibility

A. Must be poor households or groups — earns below the poverty threshold per province based on PSA data on Poverty Incidence (among families) — who would like to engage or already engaged in agriculture and fisheries. aScITE

B. May be either farmers listed in the updated Registry System of Basic Sector in Agriculture (RSBSA), DA's database, MAO's farmers registry, 4Ps beneficiaries, Indigenous People's (IP) group, or members of accredited farmer organizations and cooperatives.

C. Preferably, must not be a recipient of similar intervention/s from DA in the last two years upon implementation.

D. Any poor groups not formally organized who would like to avail SAAD Program will be assisted by SAAD in registering with appropriate agency or authority and for their accreditation, provided, they will undergo the required training course/s by SAAD.

VI. Mechanics of Implementation

A. As stated in the SAAD framework, the project shall have the following major activities:

1. Program Management — shall include planning, budgeting, hiring, coordination with stakeholders, and monitoring;

2. Social Preparation — shall include community organizing, capability building, project orientation, and consultations;

3. Production and Livelihood — shall include provision of interventions from production to post-production, including technical trainings; and

4. Marketing Assistance and Enterprise Development — shall cover market study, logistic support, trainings on entrepreneurship and value-adding, and audit of enterprises. DETACa

A SAAD implementation manual shall be formulated to provide the mechanics of implementation per abovementioned activity.

B. For preparatory activities, the selection of municipalities and barangays shall be done based on criteria considering poverty status and other considerations (level of malnutrition, peace and order condition, accessibility, previous performance of LGU, absorptive capacity, and number of municipalities and barangays. Needs and environment assessment and project identification shall be done with the participation of the farmers and stakeholders.

C. Capability building both for program beneficiaries and staff, shall be coordinated with the Agricultural Training Institute (ATI) for inclusion in their work and financial plans (WFP). In case ATI cannot accommodate said capacity building requirements, those may be incorporated in the Program's WFP.

D. Fishery-related project proposals shall be endorsed to the Bureau of Fisheries and Aquatic Resources through its BFA SAAD Focal Persons in coordination with the RPMSO.

E. All credit/financing requirements of the SAAD beneficiaries shall be coordinated and endorsed to the Agricultural Credit Policy Council (ACPC) through its provincial Focal Persons, or to the Land Bank of the Philippines for loans or credit facilities under the Agricultural Competitiveness Enhancement Fund (ACEF), in coordination with the RPMSO. HEITAD

F. All insurance requirements of the SAAD beneficiaries shall be coordinated and endorsed to the Philippine Crop Insurance Corporation (PCIC), in coordination with the RPMSO.

G. Projects which are not covered by SAAD funds are in Annex A.

H. For facilitating program implementation, the Cash-for-Asset (CfA) scheme shall also be utilized. Attached as Annex B is the SAAD CfA guidelines.

I. Community participation in procurement, in accordance with the Government Procurement Policy Board (GPPB) rules and regulations, is encouraged to promote local ownership of the project and to ensure greater success.

VII. Duration

Program implementation started in 2017 and will last until 2022.

VIII. Coverage

The SAAD covers thirty (30) provinces. The first 10 provinces (FY 2017) were selected based on PSA 2012 data on Poverty Incidence (among families) while the other 20 provinces (FY 2018 & FY 2019) were selected based on PSA 2015 data. (Note: The PSA 2012 data was used in the selection of the first 10 provinces since the PSA 2015 data was not yet available at the time of selection. Currently, however, the PSA 2015 data is the latest available data, and was thus used for the next 20 provinces.) aDSIHc

SAAD also considered the "island equity principle." Thus, for both FY 2018 & FY 2019, the coverage was: Luzon (3 provinces), Visayas (3 provinces) & Mindanao (4 provinces).

 

SAAD Regional Office		SAAD Provinces		Total No. of Provinces
	FY 2017-2022	FY 2018-2022	FY 2019-2022	FY 2017-2022
CAR	Apayao	-	Kalinga	3
			Mountain Province
MIMAROPA	-	-	Occidental Mindoro	1
		Catanduanes
5	-	Sorsogon	-	3
		Masbate
6	-	-	Negros Occidental	2
			Antique
7	Negros Oriental	Siquijor	Bohol	3
	E. Samar	Southern Leyte
8	N. Samar	Leyte	-	5
	W. Samar	-
9	Zamboanga del Norte	Sulu	-	2
10	Lanao del Sur	Bukidnon	Misamis Occidental	4
			Lanao del Norte
11	-	Compostela Valley	-	1
	Maguindanao
12	North Cotabato	Sultan Kudarat	-	4
	Sarangani
13	-	-	Agusan del Sur	2
			Surigao del Sur
TOTAL (No. of Provinces)	10	10	10	30

 

In addition, owing to the priority given to IP communities, SAAD may expand its operations outside the 30 provinces to accommodate poor IP communities. ATICcS

IX. Funding

Funding for the program is from the GAA, since the SAAD is a locally-funded project.

X. Program Management

There shall be a Program Steering Committee (PSC), a Technical Working Group (TWG), a National Program Management Office (NPMO), Regional Program Management Support Offices (RPMSOs), and Provincial Program Management Support Offices (PPMSOs).

The said groups shall be composed of organic DA officials/staff designated or assigned to the program as well as staff/consultants hired for the program. (Please see Annex C. SAAD Program Organizational Chart.)

The functions of the groups are:

A. PSC:

1. Provides policy guidance, overall strategic management, and directives to the NPMO;

2. Reviews and Approves program guidelines;

3. Approves the annual plan and budget of the Program;

4. Identifies and accesses fund sources for the implementation and sustainability of the program; ETHIDa

5. Ensures the provision of technical support and meaningful partnership and cooperation/collaboration with other relevant departments or offices in the implementation of the program;

6. Oversees the promotion, coordination, and establishment of networks, linkages, and partnership with other agencies, institutions and stakeholders; and

7. Reviews and endorses the program reports to the DA Secretary.

B. NPMO:

1. Prepares implementation manual;

2. Communicates the directives to implementing units;

3. Prepares and consolidates planning and budget related documents including multi-year plans;

4. Plans and programs the NPMO activities based on the approved budget;

5. Manages NPMO procurement requirements;

6. Manages, coordinates, and/or conducts program implementation and submits reports to the PSC; TIADCc

7. Conducts promotion of the program through caravans, social media, plugs, etc.;

8. Facilitates capability building of program staff and other implementing units;

9. Supplements manpower requirements of RPMOs;

10. Evaluates and recommends project proposals, budgets and proposed realignments of the Program;

11. Prepares technical reports, memorandum, and communications for the conduct of projects, activities, and other related tasks undertaken by the Program;

12. Consolidates and analyzes program implementation reports including feedbacks from implementing units;

13. Monitors and assesses program implementation;

14. Facilitates external program evaluation; cSEDTC

15. Provides recommendations to RPMOs to improve implementation;

16. Provides policy recommendation to the PSC;

17. Conducts timely documentation and archiving of activities;

18. Designs, manages, updates databases and web application;

19. Assists the PSC in preparing updates and reports regarding the status of the program to the DA Secretary;

20. Provides technical and administrative support to the PSC and TWG including budget preparation, procurement, and other related therein;

21. Acts as the Secretariat during PSC meeting and TWG meetings; realignments of the Program;

22. Coordinates with the RFOs, other DA programs, and agencies; and

23. Performs other related tasks that may be assigned by the Chairperson of the PSC.

The NPMO shall be headed by a Program Director appointed by the Secretary. The NPMO shall provide overall guidance in the implementation of the SAAD. It shall be composed of staff handling, planning, and budgeting, monitoring, database, communications/promotions, and administrative functions. AIDSTE

The NPMO is directly reporting to the Office of the Undersecretary for Operations.

C. TWG:

1. Conducts technical review of the plans and proposals submitted by NPMO;

2. Provides technical backstopping to the NPMO;

3. Crafts necessary policies and implementation guidelines for the possible endorsement of the NPMO to the PSC;

4. Reviews proposed policy changes of NPMO;

5. Prepares the Logical Framework for proper monitoring and evaluation of the Program;

6. Manages the technical assistance activities relative to the program implementation, particularly institutional and capability building for the stakeholders based on respective office's mandate; SDAaTC

7. Perform other related tasks that may be assigned from time-to-time by the NPMO.

D. RPMSO:

1. Establishes PPMSO/s and oversee its/their operations;

2. Prepares and consolidates regional annual and multi-year plan/s and budget for the implementation of the Program;

3. Provides regular reports on the status of program implementation at provincial and regional level to the NPMO;

4. Coordinates and disseminates directives and relevant information from the NPMO to PPMSO/s, LGUs, and partners;

5. Evaluates the qualifications and proposals of the proponents, if any;

6. Assists the DA-RFO in the preparation and execution of memorandum of agreement with qualified proponents;

7. Conducts procurement of interventions;

8. Conducts testing/inspection on the delivered interventions together with the representatives of the qualified Local Government Units (LGUs); Facilitates turnover of interventions; AaCTcI

9. Conducts capability building activities based on the needs of RPMSO and PPMSO staff;

10. Monitors the establishment of communal agri-enterprises and other program related activities;

11. Validates and approves the identified beneficiaries;

12. Provides technical assistance in the implementation of the projects;

13. Assists in the testing/inspection on the delivered interventions together with the representatives of the qualified Local Government Units (LGUs);

14. Coordinates with State Colleges and Universities and other stakeholders for possible technical assistance; and

15. Provides recommendations to improve the overall program implementation.

The Regional Executive Director (RED) shall head the RPMSO and shall designate regular employees from all units in the DA RFO who shall handle planning, budgeting, operations, and monitoring and evaluation for the SAAD.

A regular employee from the DA RFO shall serve as the Focal Person for SAAD, preferably a Regional Technical Director. Job order staff shall also be hired to support the RPMSO. The number of personnel to be hired shall be the prerogative of the RED based on the operational requirement. acEHCD

E. PPMSO:

1. Identify target areas and potential beneficiaries based on existing data;

2. Ensure coordination with LGUs and partners at every phase of implementation;

3. Assess the level of preparedness of the beneficiaries to engage in any livelihood program;

4. Facilitate distribution of program resources and other requirements for projects and activities at municipal and barangay level;

5. Provide social preparation, capacity building activities, and other forms of technical assistance to beneficiaries in coordination with RPMSO, LGUs, and partner organizations;

6. Conduct testing and inspection of delivered projects and items together with the representatives and technical personnel from DA-RFO, RPMSO and qualified LGUs;

7. Conduct monitoring of projects provided by the Program and the establishment of community enterprises;

8. Coordinate and disseminate directives and relevant information from the NPMO and RPMSO to PPMSO staff, LGUs, and partners; EcTCAD

9. Conduct initial screening of project proposals which include site validation, community needs and environment assessment to ensure viability of projects;

10. Conduct profiling of partner-beneficiaries and geo-tagging of approved projects and its intended beneficiaries;

11. Regularly prepare and submit reports on the status of implementation at provincial level to the RPMSO with furnished copies to NPMO, LGUs, and partners;

12. Ensure effective and efficient communication among the PC, PPMSO staff, LGUs, partners, and beneficiaries; and

13. Provide recommendations for the enhancement of the program in achieving its objectives and ensuring its responsiveness.

The office shall be guided by the RPMSO and shall be headed by a hired Provincial Coordinator (PC) or the Agricultural Program Coordinating Officer. He/she shall be assisted by hired Area Coordinators (ACs) and technical and administrative staff. Selection of PPMSO staff shall be subject to the appointment of the RED.

Honorarium for the organic DA officials/staff shall be provided, subject to existing government accounting and auditing rules and regulations. SDHTEC

VIII. Monitoring and Evaluation

A. The RPMSOs and PPMSOs shall monitor program implementation through farm and attendance records, photo documentation, geotagging, and profiling.

B. The RPMSOs shall prepare and submit regular status reports to the NPMO.

C. The NPMO, RPMSOs, and PPMSOs shall conduct periodic project monitoring, validation, and evaluation of project implementation.

D. The RPMSOs shall prepare a terminal report on their protect implementation for submission to the NPMO.

E. The NPMO shall facilitate the conduct of the third party evaluation of the program.

IX. Supplemental Guidelines

The concerned DA-Regional Field Offices (RFOs) are hereby authorized to formulate supplemental specific guidelines, within a reasonable period upon issuance of the general guidelines, to operationalize implementation to ensure suitability to local conditions and appropriateness to specific institutional partners.

Any deviation from the above general guidelines shall always require prior written approval of the Secretary upon recommendation of the SAAD Program Director and endorsement of the Undersecretary for Operations. The SAAD Program Director shall be furnished copies of all regional issuances on the execution of these interventions. HSAcaE

X. Effectivity

These guidelines shall take effect immediately upon signing and shall supersede other issuances inconsistent herewith.

Prepared by:

(SGD.) BERNADETTE F. SAN JUANSAAD Program Director

Recommending Approval:

(SGD.) LEREY A. PANESAssistant Secretary for Special Projects

Approved:

(SGD.) EMMANUEL F. PIÑOLSecretary

ANNEX A

SAAD Negative List

Projects which are not covered by SAAD funds are the following:

1. farm-to-market roads

2. national and communal irrigation systems

3. regulatory services (i.e., establishment of laboratories, procurement of laboratory equipment) AScHCD

4. large pre- and postharvest and processing equipment/facilities (i.e., 4-wheel tractor, harvester, processing equipment/facilities)

5. large market-related infrastructures (i.e., Trading Centers, Food Terminals, etc.)

6. training centers (including equipment)

ANNEX B

Guidelines on the Implementation of the Cash-for-Asset (CfA) Project of the Special Area for Agricultural Development (SAAD) Program

I. Rationale

The Department of Agriculture (DA) is the government agency in-charge of food security and making food accessible to all. This obligation of the State is most critical to the poorest of the poor, who could barely eat three square meals a day. HESIcT

Also, poverty incidence in the Philippines is greatest in the rural areas where people rely mainly on agriculture and fisheries as their source of livelihood.

The SAAD program was established to cater to said poor farmers and fishermen by providing food production and livelihood projects. However, in order to improve implementation, it intends to provide Cash-for-Asset (CfA) as another intervention.

CfA (also called Cash-for-Work) is a short-term intervention used by assistance organizations to provide temporary work to the most vulnerable population. It is also called Cash for Building Livelihood Assets (CBLA) by the Department of Social Welfare and Development (DSWD) and is implemented through labor-intensive projects to build, rebuild, and/or protect natural and physical assets necessary for more profitable, self-sustaining and resilient micro-enterprises.

The CfA as a development approach not only discourages dependency but also preserves and improves human dignity and appreciation for work and helps pump-prime the local economy.

It can be implemented quickly and is not reliant on tedious procurement processes for goods and services, such as planting materials, which can be provided by the beneficiaries.

This CfA Project is also in support to the Presidential directive to enroll Indigenous Peoples (IPs) in the cash-for-work program.

II. Objectives

The CfA Project aims to develop agricultural land assets necessary for more profitable, self-sustaining, and resilient agricultural (crop-based) enterprises. AcICHD

Specifically, it expects to achieve:

1. Expansion of agricultural areas;

2. Faster project implementation due to non-reliance on government procurement of goods and services;

3. Reduced mortality rate of planting materials;

4. Higher adaptability and suitability of planting materials to the area's climate and other environmental conditions;

5. Prevention of the spread of plant diseases;

6. Additional livelihood income for the community while they still have no harvest or production; and

7. Improved nutrition of the community; and

8. Greater ownership of the project by the beneficiaries.

III. Mechanics of Implementation

A. The Project shall provide cash support to eligible SAAD group beneficiaries in exchange for labor and planting materials which the latter will provide. However, if the Project provides planting materials and fertilizers to the beneficiaries, the latter will return the same kind of inputs after harvest for rollover to succeeding beneficiaries. caITAC

B. Only crop production shall be the covered by the CfA project.

C. The land area per group beneficiary should be a minimum of one (1) hectare to a maximum of twenty (20) hectares or equivalent number of hills.

D. The DA-Regional Field Office (RFO) in consultation with technical experts shall provide the planting density to be followed by the beneficiary.

E. The CfA shall be granted to a group beneficiary for only one (1) cycle of crop production in the planted area. It shall provide immediate assistance to SAAD beneficiaries while they still have no harvest or production. The CfA is designed to be temporary to discourage dependency of beneficiaries on said intervention.

F. Expansion areas/new areas can be accommodated only if the previous areas are maintained.

G. Beneficiary Eligibility

1. All SAAD group beneficiaries in program-covered barangays shall be eligible to avail of the CfA project.

2. The group beneficiary may be registered or unregistered.

3. The group beneficiary should have available and suitable area for crop production. Only unproductive agricultural areas are allowed to be enrolled and there should be no clearing of existing trees. Further, the land must be free from disputes. TAIaHE

4. The group beneficiary must have readily available source of good quality seeds/planting materials (as counterpart).

H. CfA Process (from submission of required documents to payment)

Below are the steps in implementing the CfA (from submission of required documents to payment) in the target areas:

 

	Activity	Responsible Unit
1.	Submission of application documents (See item I for the list of required documents)	Group Beneficiary (Applicant)
2.	Validation (desk and field) of each application	Area Coordinator
3.	Review of the validated application	Provincial Coordinator
4.	Approval of the application	Regional Program Management Support Office (RPMSO)
5.	Drafting of MOA which shall be executed between the DA-RFO, beneficiary, and agency/ies who will conduct monitoring and inspection • Should include the intended area, list of members, and authorized member to receive the cash assistance • The monitoring and release of funds schedule should be explicitly stated and agreed upon	RPMSO (NPMO to provide template)
6.	MOA signing • The MOA shall be reviewed and signed by the concerned parties • At least four (4) copies of the notarized MOA shall be prepared for the beneficiary, RPMSO, and agency/ies	RPMSO
7.	Conduct of trainings on crop production for the group beneficiaries, if needed	PPMSO
8.	Implementation of CfA activities	Group Beneficiary
9.	Inspection after each CfA activity • Shall be done before each release of funds • An inspection report should be signed by the Barangay LGU, Office of the Municipal Agriculturist (MA), or National Commission on Indigenous Peoples or NCIP (for IPs) • The Area Coordinator shall always accompany the said inspectors • They shall inspect the target areas for the verification of the land preparation activities and number of stabilized seedlings planted on the ground • The SAAD shall provide the necessary Inspection Reports or any documents deemed necessary by the Regional Accounting for the release of funds	Inspector/s and AC

 

Figure 1 shows the CfA Process Flow from submission of required documents to payment.

I. Documentary Requirements

The group applicant shall submit the following documents to the PPMSO:

1. Registration or certification from barangay (if not registered)

2. Letter of intent

3. Accomplished Application Form/business plan — includes the details on area, commodity, source of planting materials, market, others ICHDca

4. Photos of the proposed location

5. Organizational Structure

6. List of members

7. Board Resolution (signed by all members) authorizing a member to receive cash payment using his bank account

8. Bank account — at the Land Bank of the Philippines (LBP)

9. Proof of land ownership/rights/authority to use (title should be attached)

10. Proof of access to planting materials

11. Endorsement from any of the following: Barangay LGU, Office of the Municipal Agriculturist (MA), or National Commission an Indigenous Peoples or NCIP (for IPs) indicating their willingness to be deputized as inspector and to conduct monitoring.

J. Payment

Payment per beneficiary shall be based on activity. It shall be released after inspection and deposited to assigned bank account.

 

Activity	Rate	Remark/s
Land preparation	P5,000/hectare	• Pro-rated based on area
Planting	P10,000/hectare	• Planting density prescribed by DA should be followed • Payment shall be made at a minimum of 1 month after planting and shall be based on survival rate
Submission of Records	P5,000/hectare	• Payment is upon submission of complete farm records

 

K. Monitoring

The Barangay LGU, MA, or NCIP (for IPs) together with the AC shall monitor the CfA through farm and attendance records, photo documentation, geotagging, and profiling.

L. Evaluation

The evaluation of the CfA Project shall be done by the NPMO.

Figure 1. CfA Process Flow (from Submission of Required Documents to Payment)

 

ANNEX C

SAAD Program Organizational Chart