Agriculture Secretary Francisco P. Tiu Laurel Jr. and Interior and Local Government Secretary Juanito Victor “Jonvic” C. Remulla Jr. signed a Joint Memorandum Circular (JMC) establishing uniform guidelines for granting real property tax exemptions to qualified agricultural storage facilities, paving the way for lower costs and increased investments in post-harvest infrastructure.

The new policy operationalizes Section 12(b) of the Sagip Saka Act, which provides tax exemptions for eligible structures, buildings, and warehouses used for storing farm inputs and agricultural products, provided their assessed value does not exceed ₱3 million.

The measure is expected to encourage farmers, cooperatives, and agricultural enterprises to invest in warehouses and storage systems that can help reduce losses, improve product quality, and strengthen the country’s food supply chain.

The JMC sets clear requirements, procedures, and responsibilities for government agencies and local government units, creating a standardized process for beneficiaries seeking to avail themselves of the incentive.

Tiu Laurel said the issuance represents a major step in fully implementing the Sagip Saka Act and ensuring that its incentives reach farmers and other stakeholders in the agriculture sector.

“Storage facilities are critical components of agricultural development. They help reduce post-harvest losses, preserve product quality, improve inventory management, and support more efficient marketing and distribution of agricultural products,” Tiu Laurel said.

The agriculture chief said tax savings from the exemption could be redirected toward upgrading storage facilities, adopting modern technologies, improving farm inputs, and expanding agricultural enterprises.

The policy comes as producers continue to deal with elevated logistics and transportation costs, making efficient storage systems increasingly important in improving farm profitability and reducing waste.

The initiative also supports Executive Order No. 101, issued in 2025, which directs the government to strengthen the implementation of the Sagip Saka Act and expand support for farmers, fisherfolk, cooperatives, and agricultural organizations.

The DA said effective implementation of the tax incentive will depend on close coordination between national agencies and local governments to ensure qualified beneficiaries can access the program.