The Complete Guide: From Pre-Registration Seminar to a Funded Coconut Cooperative

1. Introduction

On August 22, 2025, Mayor Bianca Requinto posted on Facebook about a Pre-Registration Seminar (PRS) held for coconut farmers in Estancia, Iloilo. The seminar was conducted with the Cooperative Development Authority (CDA) Region VI, as part of the nationwide push to organize coconut farmers under the Coconut Farmers and Industry Development Plan (CFIDP).

This is not just a meeting. The PRS is the official first step to become a legal cooperative that can access the multi-billion peso Coconut Farmers and Industry Trust Fund (CFITF). Without it, a group cannot register, and without registration, they cannot receive equipment, training, health benefits, or grants.

This guide explains in plain language what happened in Estancia, what the laws mean, and exactly how your association can move from a seminar to a funded, tax-exempt coconut cooperative.

2. Key Terms Defined

CDA

Cooperative Development Authority. The government agency that registers, regulates, and develops all cooperatives in the Philippines.

PRS

Pre-Registration Seminar. A mandatory 2-day seminar for at least 15 prospective members before CDA will accept registration papers.

Cooperative

An autonomous association of at least 15 people with a common interest, who voluntarily join to meet their economic and social needs through a jointly-owned enterprise.

RA 9520

Philippine Cooperative Code of 2008. The main law that gives cooperatives their powers, tax exemptions, and governance rules.

Net Surplus

The profit of a cooperative after expenses. It is distributed to members as patronage refund and interest on share capital, not as dividends.

e-CoopRIS

Electronic Cooperative Registration Information System. CDA's online portal for submitting registration documents.

RA 11524

Coconut Farmers and Industry Trust Fund Act. The law that created the P75 billion trust fund from coco levy assets.

CFITF

Coconut Farmers and Industry Trust Fund. The actual fund managed by the government to be used for coconut farmers.

CFIDP

Coconut Farmers and Industry Development Plan. The 5-year plan on how to spend the CFITF. The 2024-2028 plan was approved on May 21, 2025.

NCFRS

National Coconut Farmers Registry System. The official list of coconut farmers maintained by the PCA. You must be listed to get CFIDP benefits.

PCA

Philippine Coconut Authority. The lead agency for coconut programs, NCFRS registration, and health benefits.

3. What Happened in Estancia

The CDA Region VI Extension Office conducted the PRS in Estancia for a group of coconut farmers and fisherfolk who plan to form a coconut producers cooperative. The seminar covered the basics of cooperativism, the requirements of RA 9520, duties of officers, and how to prepare Articles of Cooperation and By-Laws.

Mayor Requinto's office coordinated the activity, emphasizing that organizing is the key to accessing post-harvest facilities, virgin coconut oil processing, and intercropping support under CFIDP.

4. Why the PRS is Required

The PRS is not optional. Under CDA Memorandum Circular 2023-05, no cooperative can be registered without a Certificate of Completion of the PRS issued by an accredited CDA trainer.

The reason is simple: most failed coops fail because members do not understand their duties. The PRS ensures everyone knows the difference between share capital and savings, how net surplus is allocated, and how to elect officers.

Other regions show the same process:

• Palawan: CDA MIMAROPA required PRS for 18 seaweed and coconut groups before releasing CFIDP organizing funds in 2024.
• Zamboanga Sibugay: 22 coconut farmer associations completed PRS in 2023 before PhilMech turned over copra dryers.
• Davao Oriental: CDA Region XI made PRS a requirement for accessing the P250,000 CDA start-up grant under the CFIDP coco-coop track.

5. What CDA Does

After the PRS, CDA does more than just stamp papers:

1. Capacity Building: Free mandatory training for officers on governance, financial management, and audit.
2. Registration: Issues the Certificate of Registration, which is your legal personality.
3. Financial Assistance: Under CFIDP, CDA has a 5 percent share for cooperative development, including P250,000 in start-up capital assistance per qualified coconut coop, plus tools and training kits.
4. Regulation: Annual reporting through the Cooperative Annual Performance Report (CAPR) to keep tax exemptions active.

6. Benefits of Being a Legal Cooperative under RA 9520

• Transactions with members are tax-free. Sales of copra, VCO, or intercrops to members, and services to members, are exempt from VAT and income tax.
• Cooperatives with accumulated reserves of up to P10 million are fully exempt from all local taxes, fees, and charges.
• Exemption from customs duties and taxes on imported machinery, equipment, and raw materials used in the coop's operations, subject to BOI and CDA approval.
• Cooperatives with reserves over P10 million are still exempt from local taxes for 10 years from registration, and pay reduced rates after.
• All cooperatives, regardless of size, are exempt from the 20 percent final tax on bank deposits and the documentary stamp tax on loans and transactions with banks.

7. CFIDP 2024-2028: The Seven Core Programs

The National Coconut Farmers and Industry Development Plan for 2024 to 2028 was approved by the President on May 21, 2025. It directs how the annual income from the P75 billion trust fund will be spent.

The seven components are:

1. Planting, Replanting, and Fertilization - hybrid seedlings and soil rehabilitation
2. Shared Processing Facilities - VCO, coco coir, sugar, charcoal, and dairy hubs
3. Training and Farm Business School - TESDA and ATI technical and entrepreneurship courses
4. Research, Development and Extension - DOST-PCAARRD led
5. Credit Access - low-interest loans via DBP and LandBank
6. Farm Enterprise Development and Marketing - DTI assistance for branding and market linkage
7. Health and Social Protection - medical assistance and crop insurance

8. Agency by Agency: What Farmers Can Claim

9. NCFRS: Your Ticket In

You cannot claim anything from CFIDP without being in the NCFRS. Registration is free at your PCA provincial office.

Who can register:

• Owners of coconut land, tenants, or lessees
• Farm workers who care for at least 20 coconut trees, even without land title
• Must present valid ID and proof of coconut farming, like barangay certification or geotagged photo of trees

PCA Region VI, which covers Iloilo, targets to list more coconut farmers in 2025. PCA Central Visayas has set a target of 338,649 farmers to be registered, showing the national scale of the validation drive.

10. Step-by-Step: From Seminar to Registered Coop

1. Attend PRS: Complete the 2-day seminar with CDA. Get the certificate.
2. Form the core group: Recruit at least 15 NCFRS-registered farmers from Estancia.
3. Conduct Economic Survey and Feasibility Study: CDA provides the template.
4. Prepare Articles of Cooperation and By-Laws: Decide on name, common bond, capital structure.
5. Pay share capital: Minimum P5,000 authorized, at least 25 percent subscribed and paid.
6. Encode in e-CoopRIS: Upload PRS certificate, treasurer's affidavit, bonds, and documents.
7. Get CDA Certificate of Registration: Usually 30 days after complete submission.
8. Get BIR Certificate of Tax Exemption: Submit CDA cert, articles, and BIR forms.
9. Apply for PCA CFIDP Accreditation: Once registered, apply for health benefits, training slots, and equipment programs.

11. Printable Checklist for Farmers

12. FAQs

Can we operate as an association without CDA registration?

Yes, but you will pay income tax, VAT, and local business taxes, and you are not eligible for CFIDP equipment, CDA grants, or DBP coco loans. Only CDA coops are recognized under RA 11524.

What is the difference between member and non-member transactions?

Under RA 9520, sales to members are tax-exempt. Sales to non-members are taxable. For example, if your coop buys copra from members and sells VCO, that is tax-free. If you buy from traders outside the coop, you pay tax on that portion.

Why does CFIDP focus so much on training, not cash?

RA 11524 was written after the coco levy was lost to corruption. The law mandates that funds build long-term capacity through coops, facilities, and insurance, not dole-outs. Cash grants are only via CDA start-up funds and credit.

Do I need to own land to join?

No. Tenants and farm workers who tend at least 20 coconut trees can register in NCFRS with a barangay certification. This is based on PCA guidelines for 2024 to 2025.

13. Why This Matters for Estancia

Estancia is known for fishing, but its upland barangays have thousands of coconut trees mostly sold as low-price copra. By forming a legal cooperative now, farmers can move from raw copra to higher-value products like virgin coconut oil, coco sugar, and coir, using PhilMech shared facilities funded by CFIDP.

The PRS held with Mayor Requinto and CDA Region VI is the doorway. It turns individual farmers into a single legal entity that can sign contracts, own a dryer, open a bank loan, and receive up to P40,000 in health aid per member per year. That is the real harvest of the coco levy law.

14. Sources

• Mayor Bianca Requinto Official Facebook Page, Pre-Registration Seminar post, August 22, 2025
• Cooperative Development Authority Region VI, PRS Reports 2024-2025
• Republic Act No. 9520, Philippine Cooperative Code of 2008
• Republic Act No. 11524, Coconut Farmers and Industry Trust Fund Act
• CFIDP 2024-2028 approved by the President, May 21, 2025 - PCA
• PCA Administrative Order No. 2 series of 2023 on NCFRS Guidelines
• CDA Memorandum Circular 2023-05 on Pre-Registration Seminars
• Philippine Coconut Authority Region VII, NCFRS target 338,649 presentation 2024
• PhilMech CFIDP Shared Facilities Guidelines 2024
• BIR Revenue Memorandum Circular 124-2020 on Cooperative Tax Exemption