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3.

14 Production/Contract Growing/Growership is an AVA scheme wherein the ARBs commit to produce certain
crops which the investor buys at pre-arranged terms (e.g., volume, quality standard, selling price). This may
come in the form of production and processing agreements.

4.5 All AVAs which will require transfer of or allow the use and possession of the land in favor of the investor or
former
landowner, such as lease agreement, joint venture agreement, build-operate-transfer and combination or phased
implementation of
these schemes, or other schemes/arrangements analogous to the above shall be reviewed/evaluated by the National
AVA
Evaluation Committee (NAEC) upon endorsement by the Provincial Agrarian Reform Coordinating Committee
(PARCCOM) and shall
be approved by the Presidential Agrarian Reform Council (PARC) or PARC Executive Committee (ExCom). aSCHcA

All other AVAs such as production/contract growing/growership, marketing contract, management contract,
service grower contract and
other emerging schemes where there is no transfer in the use and possession of the land in favor of the
investor or former LO shall
be reviewed by the Provincial Agrarian Reform Officer (PARO). These shall not be required to go through the
NAEC and PARC or
PARC ExCom review and approval process under this Order.

5.2.1 The production/growing/growership/marketing contract shall stipulate the terms of sale which shall include the
quality, quantity
and price of agricultural produce to be bought by the investor.

5.2.2 In production/contract growing/growership, the investor may provide at reasonable cost, the technology and
other farm inputs
prescribed for the production of agricultural goods according to the quality standards set by the growership contract.
Any loss
resulting from arbitrary adjustments in the quality standards shall be borne by the investor unless the ARBs are
informed, at the
earliest opportunity, of the adjustments and are provided with reasonable means to cope therewith.

5.2.5 Agricultural produce of ARBs which fail to meet the pre-agreed quality standards may be rejected by the
investor, the liabilities
for which shall be borne by the ARBs, provided, that such sub-standard produce are not due to the technology,
equipment or inputs
specifically prescribed by the investor. CDISAc
The parties shall avail of a crop insurance from which the costs shall be recovered in case sub-quality standard
produce is
due to force majeure. In case the agreement is one of production/contract growing/growership, the premium shall be
charged to both
parties as deductible expenses. If it is a marketing contract, the premium shall be charged to the ARBs.

5.2.6 The period for acceptance by the investor of the products delivered shall be stated in the growership contract.
Acceptance is
implied by the investor’s failure to notify the ARBs of its rejection of the products after the lapse of the agreed period.