The Department of Agriculture (DA) and the Department of the Interior and Local Government (DILG) have signed a Joint Memorandum Circular (JMC) establishing uniform guidelines for exempting eligible farm storage facilities from local real property taxes, a move aimed at lowering operating costs and encouraging greater investments in post-harvest infrastructure.
The JMC was signed by Agriculture Secretary Francisco P. Tiu Laurel Jr. and Interior and Local Government Secretary Juanito Victor “Jonvic” C. Remulla Jr. during a ceremony, underscoring the national government’s commitment to fully implementing the landmark law.
The circular operationalizes Section 12(b) of the Sagip Saka Act, which exempts qualified structures, buildings, and warehouses used for storing farm inputs and outputs from real property tax, provided their assessed value does not exceed ₱3 million.
The signing also advances Executive Order No. 101, s. of 2025, which directs the full implementation of the Sagip Saka Act and strengthens coordination across government to deliver its benefits to farmers, fisherfolk, cooperatives, associations, and agricultural enterprises.
Agriculture Secretary Francisco P. Tiu Laurel Jr. described the issuance as “an important step in our continuing efforts to fully realize the vision and promise of the Sagip Saka Act,” saying the guidelines finally establish a clear and uniform framework for implementing one of the law’s key incentives.
The JMC spells out the requirements, procedures, and responsibilities of national agencies and local government units, giving qualified beneficiaries greater certainty in availing themselves of the tax exemption.
Tiu Laurel said the incentive goes beyond tax relief, encouraging investments in storage infrastructure that strengthen the country’s agricultural supply chain.
“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,” he said.
The measure comes as producers continue to grapple with elevated logistics and transport costs, making efficient storage increasingly vital to reducing waste and improving farm profitability.
According to Tiu Laurel, the tax savings can be redirected toward better farm inputs, modern storage systems, post-harvest facilities, equipment, technology adoption, and enterprise expansion, particularly for small farmers, fisherfolk, cooperatives, and agricultural enterprises.
He said the success of the policy will ultimately depend on its effective implementation, urging local government units to work closely with the DA so qualified beneficiaries can readily access the incentive.
The DA expects the circular to spur investments in storage infrastructure, strengthen agricultural value chains, reduce post-harvest losses, and improve the competitiveness of the country’s food sector by lowering costs and boosting productivity across the farm-to-market chain.
