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Policies Affecting the Agricultural
Machinery
Industry
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Agricultural Engineering Act of 1998 (View: Republic Act No. 8559). An act regulating the practice of agricultural engineering profession.
Agriculture and Fisheries Modernization Act (AFMA View: Sec 59) And its Implementing Rules and Regulations (IRR of RA 8435 AFMA is a landmark legislation that aims to accelerate the pace of development of agriculture and fisheries. It stated among others: The DA shall give priority to the development and promotion of appropriate agricultural machinery and other agricultural mechanization technologies to enhance agricultural mechanization in the countryside. With this policy, government is focusing and allocating funds to increase the level of mechanization.
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Standardization of Agricultural Machinery
Under these AOs, all financial institutions, private and public, participating in the various credit programs of DA shall require their clients seeking financial assistance on agricultural engineering activities to comply with standards. All entities, private and public, wishing to transact business with DA related to the conduct of projects and supply of agricultural engineering technologies, systems and services were also required to comply with the Philippine Agricultural Engineering Standards.
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As of this time, the implementing rules and regulation for these AOs was on the process. Once implemented, this will serve as guide to the manufacturers to further improve their products to be globally competitive. These standards also protect the end-user by setting the minimum requirements of construction and safety requirements.
Intellectual Property Rights.
Majority of patent holders of agricultural technologies are foreign companies whereas locally owned patents are wholly owned by individuals. Hence, the low proportion of Filipino-owned patents indicates the low level of research and development among Filipino-owned firms. Most patents awarded to Filipinos are in agricultural machineries and gadgets indicating that most innovative activities are in this area. (Halos, 1999)
Total quantity of patented agricultural technologies from 1948-1995
| Agricultural technologies
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Foreign
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Local
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| Agrochemicals
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1656
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24
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| Agricultural machineries
and gadgets
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166
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130
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| Animal husbandry
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146
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9
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| Agro-processing |
286
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80
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| Total |
2254
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243
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Tariffs on Agricultural Machinery
• Executive Order 133 allowed the duty free importation of selected agriculture and fisheries inputs, supplies, machinery and equipment.
• Tax Exemptions (Source: DA-Agribusiness and Marketing Assistance Service)
• Duty free importation of selected agriculture and fishery machinery and equipment.
There were attempts made by private sector to manufacture locally a single cylinder IC engine, however, due to political and economic instability, potential investors shied away from the country.With the proliferation of low cost machinery from other Asian countries, most manufacturers cannot compete for the highly price sensitive market.
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