Saving the coconut farmers

Below is a draft copy of an Executive Order recently submitted to President BBM for his approval. It is intended to revive the coconut industry and bring prosperity for the ordinary coconut farmer, finally putting the coconut levy fund to good use. I personally urge that this draft EO be approved immediately.

Executive Order No. _____, 2025

An act re-establishing UCPB Savings Bank, Inc. as the financial intermediary dedicated to providing medium and long-term financing to coconut farmers and ensuring the development of the coconut industry.

WHEREAS, the coconut industry is one of the great economic pillars of our nation, and coconuts and their by-products occupy a leading position among the country’s export products; that it gives employment to thousands of Filipinos; that it is a great source of the State’s wealth and that it is one of the important sources of foreign exchange needed by our country and thus pivotal in the plans of a government committed to a policy of currency stability.

*      *      *

WHEREAS, it is imperative to protect the rights and welfare of coconut farmers, recognizing their critical role in the agricultural sector and their contribution to the national economy.

WHEREAS, in 1971, former President Ferdinand Marcos Sr. signed into law Republic Act No. 6260 as a commitment to accelerating the growth and development of the coconut industry, by providing adequate medium- and long-term financing for capital investment in the industry through the creation of the “Coconut Investment Fund.” Such Investment Fund is capitalized and administered by coconut farmers to ensure that they would have access to the capital needed to invest in their future.

*      *      *

WHEREAS, in 2021, Republic Act No. 11524 was enacted to streamline the collection and distribution of the coconut levy funds by creating the “Coconut Farmers and Industry Trust Fund” generated from levies, taxes, charges and other fees exacted or imposed to coconut farmers, planters, millers, refiners, processors, exporters, desiccators and other end-user of copra or its equivalent in coconut products. Such Fund shall be used for the benefit of the coconut farmers and the development of the coconut industry.

WHEREAS, the Supreme Court, in a long line of cases, has recognized the Philippine Coconut Producers Federation, Inc. (COCOFED) as the representative of coconut farmers’ organizations in the Philippines, playing a crucial role in advocating for the rights and welfare of coconut farmers in issues related to government policies, economic support and the development of the coconut industry.

WHEREAS, COCOFED united with national federations of coconut farmers’ organizations, eventually becoming the Confederation of Coconut Farmers’ Organizations of the Philippines, Inc. (CONFED), the current recognized representative of coconut farmers’ organization in the Philippines.

*      *      *

WHEREAS, in Confederation of Coconut Farmers Organizations of the Philippines, Inc. (CCFOP) vs. His Excellency President Benigno Simeon C. Aquino, G.R. No. 217965, Aug. 8, 2017, the Supreme Court held that coconut levy funds are special funds allocated for a specific purpose and can never be used for purposes other than for the benefit of the coconut farmers or the development of the coconut industry. The Supreme Court further held that any attempt to appropriate the said funds for another reason, no matter how noble or beneficial, would be struck down as unconstitutional.

*      *      *

WHEREAS, UCPB Savings Bank, Inc. (UCPB Savings Bank) is a domestic savings bank incorporated on Oct. 18, 1962 that provides services such as deposit-taking, loans and domestic fund transfers.

WHEREAS, at present, Land Bank of the Philippines (LandBank) is the holder of the 97.55 percent of shares in UCPB Savings Bank after the merger of United Coconut Planters Bank (UCPB) and LandBank in 2021, with LandBank as the surviving entity.

WHEREAS, the 97.55 percent of shares in UCPB Savings Bank is in the nature of coconut levy funds, which is being held in trust by LandBank for the benefit of the coconut farmers and the coconut industry in the Philippines.

WHEREAS, in order to revitalize the coconut industry and alleviate the lives of the coconut farmers in the Philippines, it is high time to re-establish UCPB Savings Bank as the financial support bank for the coconut farmers and coconut industry.

WHEREAS, to finally achieve full protection of the rights and welfare of the coconut farmers and the coconut industry, it is essential that coconut farmers be heard in corporate matters affecting their rights in UCPB Savings Bank by having representations in the Board of the said bank, ensuring that their concerns and interests are represented in decision-making processes that directly impact their livelihoods and well-being.

WHEREAS, Section 17, Article VII of the Constitution provides that the President shall have control of all executive departments, bureaus and offices and shall ensure the faithful execution of laws;

Now, therefore, I, Ferdinand R. Marcos, Jr., President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:

Section 1. Representation in the Board. The representation of the coconut farmers in the Board of UCPB Savings Bank is hereby approved, subject to relevant laws, rules and regulations.

Section 2. Composition of the Board. The composition of the Board of UCPB Savings Bank shall be composed of seven (7) members, four (4) of which shall be reserved for the representatives of the coconut farmers.

The remaining three (3) seats will be filled by representatives from relevant government agencies, as may be nominated by a special committee to be established by the Government.

Section 3. CONFED. As current recognized representative of coconut farmers’ organization in the Philippines, CONFED shall have the power to designate four (4) nominee directors as representatives of the coconut farmers in the Board of UCPB Savings Bank.

Note: Certain sections were removed for brevity.