CITY OF SAN FERNANDO, PAMPANGA — For decades, Filipino farmers have been trapped in a cycle: they grow the food, but middlemen take the profit. The Sagip Saka Act is changing that. Under Republic Act No. 11321 and GPPB Circular No. 02-2025, government agencies and local government units can now buy agricultural products directly from accredited farmers' cooperatives and enterprises—no public bidding, no middlemen, no red tape. And it's already making a difference in Central Luzon.
What Is the Sagip Saka Program?
The program is designed to do exactly what its name says: sagipin, or rescue, farmers from a system that has long favored traders over producers. Through direct selling, farmers' cooperatives—like the Sta. Ana Agricultural Multi-Purpose Cooperative in Pampanga—can sell their harvest, including rice, directly to government agencies, making the government the farmer's customer rather than the middleman's. Higher income is ensured because the GPPB guidelines require government purchase prices to be set above prevailing farmgate rates while remaining reasonable and advantageous to the government, with prices guided by validated Department of Agriculture and Department of Trade and Industry monitoring reports . Cooperatives and associations can also register with the DA through systems like FFEDIS and RSBSA to participate in direct transactions and government projects, including those funded by the Local Government Support Fund.
How It Works in Practice
The key mechanism is Negotiated Procurement – Sagip Saka, a simplified procurement mode under the New Government Procurement Act, which allows agencies and LGUs to buy food like rice for distribution programs directly from registered cooperatives without traditional public bidding. Under the GPPB Circular, the process includes posting for at least three calendar days on FFEDIS and other required platforms, evaluation by the Bids and Awards Committee within seven calendar days from the deadline for receipt of proposals, and contract and Notice to Proceed issuance after successful validation and award, with digital payment encouraged for faster transactions . The process is designed to be faster and simpler than traditional bidding—and it's working. In 2026, PhilRice reported that farmer cooperatives supported by its RiceBIS program secured over PHP 128 million in Sagip Saka contracts with LGUs, including a PHP 73-million contract in Imus City, Cavite, for rice supply to indigent families . The Sagip Saka Act isn't just a procurement rule—it's a development tool that cuts out middlemen who buy low and sell high, ensuring farmers get a fairer share, turns the government into a steady market for local produce, builds enterprise capacity by helping cooperatives become reliable and bankable suppliers, and strengthens food security by prioritizing local produce over imports. Direct purchase. Fair prices. Stronger farmers. Sagip Saka is rescuing rural livelihoods, one contract at a time.
