Bill 115.

Summary.

The bill seeks to bring agricultural producers in Panama together, principally through cooperatives, to strengthen their productive, competitive and business capacity. It defines the agricultural sector, small agricultural producers, agricultural cooperativism and agricultural cooperatives. The Ministry of Agricultural Development (Ministerio de Desarrollo Agropecuario, MIDA), in coordination with the Panamanian Institute of Cooperativism (Instituto Panameño de Cooperativismo, IP ACOOP) and other competent bodies, would formulate and implement a National Strategy to Promote Agricultural Cooperativism. The strategy would cover promotion of the cooperative model, cooperative management, access to credit, technical assistance and markets, and research and technology transfer. MIDA and IP ACOOP would implement training, assistance with business plans and production projects, financing for infrastructure, equipment and working capital, and links to domestic and international markets.

Agricultural cooperatives would be exempt from income tax for the first five years after their formation and entitled to a deduction for investments in infrastructure, equipment and working capital. IPACOOP would simplify formation and operating procedures in coordination with competent bodies. The text addresses reduced administrative burdens, faster access to support, digital platforms, guidance for producers and coordination of requirements with the Public Registry (Registro Público), the National Public Revenue Authority (Autoridad Nacional de Ingresos Públicos) and local governments. It also calls for a platform to submit and track applications, a procedural guide, a single service window, training for small producers and review of forms and documentation. Temporary exemptions from certain requirements could be granted when they facilitate a cooperative’s initial development and operation. A mechanism to evaluate and improve the procedures is also envisaged.

The bill would create the National Council for Agricultural Cooperativism (Consejo Nacional de Cooperativismo Agropecuario), comprising representatives of MIDA, IPACOOP, cooperatives, producer organizations, academia and the private sector. The representative of the Ministry of Agricultural Development would chair it. The Council would advise on the Strategy, propose policies, monitor implementation, coordinate participants, promote training and research, identify obstacles and prepare annual reports. Decisions would be made by a simple majority of members present, with the chair casting the deciding vote in a tie. Ordinary meetings would be held once each quarter, and extraordinary meetings could be called by the chair or requested by at least three members; at least half plus one of the members would have to attend for a valid meeting. The Council could establish technical committees. Its operations would be funded by MIDA and IP ACOOP resources, contributions from producers and cooperatives, international cooperation funds and donations. It would publish an annual report on its activities, decisions and use of resources, and hold public consultations and participatory workshops with small producers.

The State, through MIDA and IP ACOOP, would promote cold rooms in cooperatives to preserve perishable products. Those bodies would establish a program of subsidies, preferential rate loans, technical assistance and training for their construction, equipment and operation. Cooperatives installing cold rooms would be exempt from income tax for ten years from the start of those facilities’ operations and could deduct the related investments. IPACOOP and the Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia, ACODECO) would establish measures against speculation and hoarding by resellers, including price regulation, inspections, audits, fines and revocation of tax benefits. Small producers would receive priority access to cold room financing and support under criteria reflecting vulnerability and needs. The Executive Branch (Órgano Ejecutivo) would regulate the subject within three (3) months of promulgation, and the proposed law would take effect the following day.

The bill thus assigns roles to the Ministry of Agricultural Development, the Panamanian Institute of Cooperativism, the National Council for Agricultural Cooperativism, the Public Registry, the National Public Revenue Authority, the Consumer Protection and Competition Defense Authority and the Executive Branch. It would affect agricultural producers and cooperatives in Panama and be of interest to producer organizations, resellers, financing providers, refrigeration suppliers, agricultural markets, academia and the private sector.