MANILA – The Department of Agriculture (DA) and the Department of the Interior and Local Government (DILG) have signed a Joint Memorandum Circular (JMC) setting uniform guidelines for exempting qualified farm storage facilities from local real property taxes.

The DA said the measure aims to reduce operating costs and encourage investments in post-harvest infrastructure.

Agriculture Secretary Francisco P. Tiu Laurel Jr. and Interior and Local Government Secretary Juanito Victor “Jonvic” C. Remulla Jr. signed the circular during a ceremony, marking the implementation of provisions under the Sagip Saka Act.

The JMC implements Section 12(b) of the law, which grants real property tax exemptions to qualified structures, buildings and warehouses used for storing farm inputs and agricultural outputs, provided their assessed value does not exceed PHP3 million.

The issuance also supports Executive Order No. 101, series of 2025, which directs the full implementation of the Sagip Saka Act and strengthens coordination among government agencies in delivering benefits to farmers, fisherfolk, cooperatives, associations and agricultural enterprises.

Tiu Laurel 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 establish a clear and uniform framework for implementing one of the law’s key incentives.

According to the DA, the circular outlines the requirements, procedures and responsibilities of national government agencies and local government units to provide qualified beneficiaries with a clear process for availing of the tax exemption.

Tiu Laurel said the incentive is intended not only to reduce taxes but also to encourage investments in storage facilities that can 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 agriculture chief noted that the measure comes as producers continue to face high logistics and transportation costs, making efficient storage essential in reducing waste and improving farm profitability.

He added that the tax savings could be used to invest in better farm inputs, modern storage systems, post-harvest facilities, equipment, technology adoption and business expansion, particularly for small farmers, fisherfolk, cooperatives and agricultural enterprises.

Tiu Laurel also urged local government units to coordinate closely with the DA to ensure qualified beneficiaries can readily access the incentive.

The DA said it expects the circular to encourage more 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 increasing productivity across the farm-to-market chain.