Reviving the Coconut Farmers and Industry Trust Fund
Manila, Philippines — The Coconut Farmers and Industry Trust Fund is once again under the spotlight as government agencies strive to enhance its implementation and provide stronger support to the country’s 3.5 million coconut farmers. This landmark legislation has become a vital tool in addressing long-standing challenges faced by coconut farmers nationwide.
Former senator Cynthia Villar authored the Coconut Farmers and Industry Trust Fund Act, which was enacted on March 13, 2021. This law aims to return the controversial coco levy funds, originally collected during the Marcos era, directly to the coconut farmers. Its goal is to empower these farmers by investing in their livelihoods and modernizing the coconut industry.
From Senate Advocacy to National Reform
Villar, then chair of the Senate Committee on Agriculture and Food, led the push for this law. Earlier versions were vetoed due to insufficient safeguards. However, under her guidance, important protections were added, including land area limits and farmer representation, ensuring that small-scale farmers receive priority benefits.
The law was passed unanimously in the Senate in October 2020. It established a clear framework to manage the funds transparently and responsibly, reflecting Villar’s commitment to fairness and inclusivity.
Managed for Farmers, by Farmers
The legislation created a Trust Fund Management Committee that includes the Departments of Finance, Budget and Management, and Justice. At the same time, the Philippine Coconut Authority (PCA) was restructured to include representatives from coconut farmers across Luzon, Visayas, and Mindanao. This ensures that grassroots perspectives shape the fund’s direction and implementation.
With the trust fund now exceeding ₱100 billion, an initial annual allocation of ₱5 billion has been set to support key programs such as hybrid coconut planting, seedling production, research and development, farmer training, and scholarships. Other priority areas include cooperative organization, market promotion, intercropping, livestock diversification, infrastructure, credit access, health programs, and crop insurance.
These measures are designed not just to boost production but to promote social welfare and long-term empowerment for coconut farmers.
Bumpy Start, Renewed Commitment
Despite the law’s promise, the early years saw slow progress. Programs like replanting, intercropping, medical aid, and cooperative development struggled due to poor coordination and delayed fund distribution. Overlapping agency roles also hampered effectiveness.
The original Coconut Farmers and Industry Development Plan, launched through Executive Order No. 172 in 2022, failed to produce widespread impact. To fix this, the government introduced a revised plan under Memorandum Circular No. 84 in May 2025, which President Ferdinand Marcos Jr. approved.
This updated plan clarified the responsibilities of involved agencies and improved support in areas such as hybrid seed development, nursery management, expanded health benefits beyond PhilHealth, intercropping with high-value crops and livestock, strengthening cooperatives, and clearly defining infrastructure duties.
Villar’s Lasting Legacy and Vision
Although no longer in the Senate, Villar’s vision continues to inspire efforts to uplift this vital but underserved agricultural sector. Her goal was to correct a historic injustice and create a pathway for coconut farmers to rise out of poverty and achieve prosperity.
“The intent of the law has always been clear — to empower farmers with the tools, resources, and representation they deserve,” Villar emphasized in past statements, according to local sources.
With renewed inter-agency cooperation, the government aims to fulfill the law’s promise: higher incomes, stronger social protection, and a modernized coconut industry that finally gives back to the hardworking farmers long denied justice.
For more news and updates on coconut farmers and industry trust fund, visit Filipinokami.com.
