122 : Socialized Industrial Forest Management Agreement (SIFMA)

Overview

An agreement entered into the State, through the DENR, and a qualified applicant that provides the latter with exclusive right to develop, utilize, and manage a small tract of forest land consistent with the principle of sustainable development and in accordance with the approved management plan.

Main Governing Policies	DENR Administrative Order No. 2004-30
Qualified Participants [1,3]	Applicants for SIFMA shall be: Individuals/single family units, who are Filipino citizen, of legal age and preferably residents of the municipality where the area is located Actual occupants of the area being applied for SIFMA Cooperatives, associations and partnership whose members are Filipino citizens residing in the province where the SIFMA site is located, duly registered under Philippine laws
Period of Tenure [1]	25 years, renewable for another 25 years
Application Requirements [1,2]	Duly accomplished and notarized application form Sketch map of the area Application fee Proof of financial and technical capabilities to undertake initial activities in forest plantation establishment and development LGU Endorsement in the form of Resolution Certification Precondition or Free and Prior Informed Consent (FPIC)   In the case of Corporation/Cooperative Association: Certificate of SEC or CDA Registration Articles of Incorporation and By-laws wherein the development and management of forest lands and resources should be among the purposes for which the corporation is incorporated Board Resolution authorizing any of the Officers to file the application Audited financial statement for the last two (2) preceding years
Available Areas [1]	Areas Available for Socialized Industrial Forest Management Program (SIFMP): All grasslands, brushlands, and open denuded forest lands including those within government reforestation project not classified under the NIPAS, nor subject of CADC, CALC, vested rights, licenses, permits, etc.
Where to Apply [1]	Community Environment and Natural Resources Office/ Implementing Provincial Environment and Natural Resources Office
Approving Authority [3]	DENR Secretary
Applicable Fees [1,2]	Administrative Fees Government Share (income taxes, rentals)
Incentives and Privileges [1]	All planted trees, crops and products in SIFMA Area shall belong to the SIFMA holder who shall have the right to harvest, sell and utilize such trees and crops, except those retained foe environmental protection purposes Export of logs, lumber and other forest products harvested from the SIFMA shall be allowed by the DENR in accordance with the government allocation system All plantation products derived from the SIFMA area shall be exempted from payment of forest charges Entitlement to appropriate and reasonable compensation for the developments in the area, in case of cancellation of the SIFMA without cause or for public interest Participants of SIFMP who are actual occupants shall be given priority in the event rules, regulations or laws in the future shall allow a more permanent tenure arrangement No restrictions on the use of the SIFMA and the improvements in the SIFMA area as collateral for obtaining loans for the improvement of the area, provided, that there is prior approval of the issuing authority of the SIFMA Technical assistance should SIFMA holders wish to confederate into a larger organization
Tenure Holder Responsibilities [1]	Develop the SIFMA area within three (3) years from the grant of the agreement Protection, rehabilitation and conservation of forestlands and resources within its designated area and shall assist the government in the protection of adjacent forest lands Pollution prevention and mitigation, and environmental protection measures to prevent degradation of soil and water resources Rehabilitate open and denuded areas and the protection of existing natural forest vegetation Keep areas with slopes 50 percent of higher and strips of land at least 20 meters in width bordering rivers and streams permanently under tree cover Prepare and implement the Indicative Development Plan
Development Plans [1]	Indicative Development Plan
Allowable Activities [1]	Planting of forest tree species including rubber, and/or non-timber species like rattan and bamboo in not less than 60% of the area; fruit trees in not less than 30% of the area, and the remaining plantable area for agricultural crops preferably permanent agricultural crops Application of silvicultural programs such as timber stand improvement and assisted natural regeneration Harvesting & transport of planted trees
Prohibited Activities [1]	Cutting of trees along gullies, steep slopes, river channels and other identified critical areas Conversion of SIFMA area to other land uses not authorized under the agreement Planting and introduction exotic species which are untested in Philippine conditions, unless clearance is given by DENR Cutting of naturally growing trees Abandonment of SIFMA Area

Flow Chart

Policy References

Main Policies

The following are the existing policies used as references in this index:

Code	Policy No.	Policy Title	Date Signed	Signatory
1	DAO 2004-30	Revised Rules and Regulations Governing the Socialized Industrial Forest Management Program	2004 Aug 25	Sec. Elisea G. Gozun
2	DAO 2004-16	Prescribing the Revised Schedule of Forestry Administrative Fees	2004 Jun 15	Sec. Elisea G. Gozun
3	DAO 2016-07	DENR Manual of Authorities on Technical Matters	2016 May 19	Sec. Ramon J.P. Paje

Other Policies

The following are other existing policies related to SIFMA:

Policy No.	Policy Title	Date Signed	Signatory
DAO 2020-09	Guidelines on the Management of Cancelled or Terminated, Expiring, and Expired Tenurial Instruments	2020 Jun 05	Sec. Roy A. Cimatu
DAO 2020-18	Promoting Tree Plantation Development and Liberalizing Harvesting and Transport of Planted Trees and Tree Derivates for Inclusive Growth and Sustainable Development	2020 Dec 17	Sec. Roy A. Cimatu
DAO 2021-27	Prescribing the Guidelines on the Issuance of Provisional Agreement for All Tenure Instruments Issued under the Forestry Sector	2021 Aug 03	Sec. Roy A. Cimatu

Policy History

The following are the policies related to IFMA that were repealed and/or amended:

Policy No.	Policy Title	Date Signed	Signatory
DAO 1996-24	Rules and Regulations Governing the Socialized Industrial Forest Management Program	1996 Aug 23	Sec. Victor O. Ramos
DAO No. 2016-07	DENR Manual of Authorities for Technical Matters	2016 May 19	Sec. Ramon J.P. Paje
DAO No. 2022-10	DENR Manual of Authorities for Technical Matters	2022 May 30	Sec. Jim O. Sampulna

Related Documents

Frequently Asked Questions [link to document]

See Also

Integrated Forest Management Agreement

Forest Land Use Agreement

Forest Land Use Agreement for Tourism

Community-Based Forest Management Agreement

Harvesting and Transport