Session Eight Conversion of Agricultural Lands

CONVERSION The actual change of the land use from agricultural, to residential,
industrial or commercial, of lands which could have potentially been covered under the
CARP

Sec 65, RA 6657

SECTION 65. Conversion of Lands. After the lapse of five (5) years from its award, when
the land ceases to be economically feasible and sound for agricultural purposes, or the locality
has become urbanized and the land will have a greater economic value for residential,
commercial or industrial purposes, the DAR, upon application of the beneficiary or the
landowner, with due notice to the affected parties, and subject to existing laws, may authorize
the reclassification or conversion of the land and its disposition: Provided, That the beneficiary
shall have fully paid his obligation.

Conversion of Agricultural Lands: What is the difference between exemption, conversion
and reclassification?

Jose Luis Ros, et. al. Petitioners, vs. Department Of Agrarian Reform Respondents. [G.R.
No. 132477. August 31, 2005.]

CHAMBER OF REAL ESTATE AND BUILDERS ASSOCIATIONS, INC. (CREBA),
petitioner, vs. THE SECRETARY OF AGRARIAN REFORM, respondent. [G.R. No.
183409. June 18, 2010.]

Sec 20 of RA 7160 (Local Govt. Code)

Section 16. General Welfare. - Every local government unit shall exercise the powers
expressly granted, those necessarily implied therefrom, as well as powers necessary,
appropriate, or incidental for its efficient and effective governance, and those which are
essential to the promotion of the general welfare. Within their respective territorial
jurisdictions, local government units shall ensure and support, among other things, the
preservation and enrichment of culture, promote health and safety, enhance the right of the
people to a balanced ecology, encourage and support the development of appropriate and self-
reliant scientific and technological capabilities, improve public morals, enhance economic
prosperity and social justice, promote full employment among their residents, maintain peace
and order, and preserve the comfort and convenience of their inhabitants.
Section 17. Basic Services and Facilities. -
(a) Local government units shall endeavor to be self-reliant and shall continue exercising the
powers and discharging the duties and functions currently vested upon them. They shall also
discharge the functions and responsibilities of national agencies and offices devolved to them
pursuant to this Code. Local government units shall likewise exercise such other powers and
discharge such other functions and responsibilities as are necessary, appropriate, or incidental
to efficient and effective provisions of the basic services and facilities enumerated herein.
(b) Such basic services and facilities include, but are not limited to, the following:
(1) For Barangay:
(i) Agricultural support services which include planting materials distribution system and
operation of farm produce collection and buying stations;
(ii) Health and social welfare services which include maintenance of barangay health center
and day-care center;
(iii) Services and facilities related to general hygiene and sanitation, beautification, and solid
waste collection;
(iv) Maintenance of katarungang pambarangay;
(v) Maintenance of barangay roads and bridges and water supply systems;
(vi) Infrastructure facilities such as multi-purpose hall, multipurpose pavement, plaza, sports
center, and other similar facilities;
(vii) Information and reading center; and
(viii) Satellite or public market, where viable;
(2) For a Municipality:
(i) Extension and on-site research services and facilities related to agriculture and fishery
activities which include dispersal of livestock and poultry, fingerlings, and other seedling
materials for aquaculture; palay, corn, and vegetable seed farms; medicinal plant gardens; fruit
tree, coconut, and other kinds of seedling nurseries; demonstration farms; quality control of
copra and improvement and development of local distribution channels, preferably through
cooperatives; interbarangay irrigation system; water and soil resource utilization and
conservation projects; and enforcement of fishery laws in municipal waters including the
conservation of mangroves;
(ii) Pursuant to national policies and subject to supervision, control and review of the DENR,
implementation of community-based forestry projects which include integrated social forestry
programs and similar projects; management and control of communal forests with an area not
exceeding fifty (50) square kilometers; establishment of tree parks, greenbelts, and similar
forest development projects;
(iii) Subject to the provisions of Title Five, Book I of this Code, health services which include
the implementation of programs and projects on primary health care, maternal and child care,
and communicable and non-communicable disease control services, access to secondary and
tertiary health services; purchase of medicines, medical supplies, and equipment needed to
carry out the services herein enumerated;
(iv) Social welfare services which include programs and projects on child and youth welfare,
family and community welfare, women's welfare, welfare of the elderly and disabled persons;
community-based rehabilitation programs for vagrants, beggars, street children, scavengers,
juvenile delinquents, and victims of drug abuse; livelihood and other pro-poor projects;
nutrition services; and family planning services;
(v) Information services which include investments and job placement information systems,
tax and marketing information systems, and maintenance of a public library;
(vi) Solid waste disposal system or environmental management system and services or
facilities related to general hygiene and sanitation;
(vii) Municipal buildings, cultural centers, public parks including freedom parks, playgrounds,
and other sports facilities and equipment, and other similar facilities;
(viii) Infrastructure facilities intended primarily to service the needs of the residents of the
municipality and which are funded out of municipal funds including but not limited to,
municipal roads and bridges; school buildings and other facilities for public elementary and
secondary schools; clinics, health centers and other health facilities necessary to carry out
health services; communal irrigation, small water impounding projects and other similar
projects; fish ports; artesian wells, spring development, rainwater collectors and water supply
systems; seawalls, dikes, drainage and sewerage, and flood control; traffic signals and road
signs; and similar facilities;
(ix) Public markets, slaughterhouses and other municipal enterprises;
(x) Public cemetery;
(xi) Tourism facilities and other tourist attractions, including the acquisition of equipment,
regulation and supervision of business concessions, and security services for such facilities;
and
(xii) Sites for police and fire stations and substations and municipal jail;
(3) For a Province:
(i) Agricultural extension and on-site research services and facilities which include the
prevention and control of plant and animal pests and diseases; dairy farms, livestock markets,
animal breeding stations, and artificial insemination centers; and assistance in the organization
of farmers and fishermen's cooperatives, and other collective organizations, as well as the
transfer of appropriate technology;
(ii) Industrial research and development services, as well as the transfer of appropriate
technology;
(iii) Pursuant to national policies and subject to supervision, control and review of the DENR,
enforcement of forestry laws limited to community-based forestry projects, pollution control
law, small-scale mining law, and other laws on the protection of the environment; and mini-
hydroelectric projects for local purposes;
(iv) Subject to the provisions of Title Five, Book I of this Code, health services which include
hospitals and other tertiary health services;
(v) Social welfare services which include programs and projects on rebel returnees and
evacuees; relief operations; and population development services;
(vi) Provincial buildings, provincial jails, freedom parks and other public assembly areas and
similar facilities;
(vii) Infrastructure facilities intended to service the needs of the residence of the province and
which are funded out of provincial funds including, but not limited to, provincial roads and
bridges; inter-municipal waterworks, drainage and sewerage, flood control, and irrigation
systems; reclamation projects; and similar facilities;
(viii) Programs and projects for low-cost housing and other mass dwellings, except those
funded by the Social Security System (SSS), Government Service Insurance System p. 172
(GSIS), and the Home Development Mutual Fund (HDMF): Provided, That national funds for
these programs and projects shall be equitably allocated among the regions in proportion to the
ratio of the homeless to the population;
(ix) Investment support services, including access to credit financing;
(x) Upgrading and modernization of tax information and collection services through the use of
computer hardware and software and other means;
(xi) Inter-municipal telecommunications services, subject to national policy guidelines; and
(xii) Tourism development and promotion programs;
(4) For a City:
All the services and facilities of the municipality and province, and in addition thereto, the
following:
(1) Adequate communication and transportation facilities;
(c) Notwithstanding the provisions of subsection (b) hereof, public works and infrastructure
projects and other facilities, programs and services funded by the national government under
the annual General Appropriations Act, other special laws, pertinent executive orders, and
those wholly or partially funded from foreign sources, are not covered under this Section,
except in those cases where the local government unit concerned is duly designated as the
implementing agency for such projects, facilities, programs, and services.
(d) The designs, plans, specifications, testing of materials, and the procurement of equipment
and materials at P170 from both foreign and local sources necessary for the provision of the
foregoing services and facilities shall be undertaken by the local government unit concerned,
based on national policies, standards and guidelines.
(e) National agencies or offices concerned shall devolve to local government units the
responsibility for the provision of basic services and facilities enumerated in this Section
within six (6) months after the effectivity of this Code.
As used in this Code, the term "devolution" refers to the act by which the national government
confers power and authority upon the various local government units to perform specific
functions and responsibilities.
(f) The national government or the next higher level of local government unit may provide or
augment the basic services and facilities assigned to a lower level of local government unit
when such services or facilities are not made available or, if made available, are inadequate to
meet the requirements of its inhabitants.
(g) The basic services and facilities hereinabove enumerated shall be funded from the share of
local government units in the proceeds of national taxes and other local revenues and funding
support from the national government, its instrumentalities and government-owned or
controlled corporations which are tasked by law to establish and maintain such services or
facilities. Any fund or resource available for the use of local government units shall be first
allocated for the provision of basic services or facilities enumerated in subsection (b) hereof
before applying the same for other purposes, unless otherwise provided in this Code.
(h) Regional offices of national agencies or offices whose functions are devolved to local
government units as provided herein shall be phased out within one (1) year from the approval
of this Code. Said national agencies and offices may establish such field units as may be
necessary for monitoring purposes and providing technical assistance to local government
units. The properties, equipment, and other assets of these regional offices shall be distributed
to the local government units in the region in accordance with the rules and regulations issued
by the oversight committee created under this Code.
(i) The devolution contemplated in this Code shall include the transfer to local government
units of the records, equipment, and other assets and personnel of national agencies and offices
corresponding to the devolved powers, functions, and responsibilities.
Personnel of said national agencies or offices shall be absorbed by the local government units
to which they belong or in whose areas they are assigned to the extent that it is
administratively viable as determined by the said oversight committee: Provided, That the
rights accorded to such personnel pursuant to civil service law, rules and regulations shall not
be impaired: Provided, further, That regional directors who are career executive service
officers and other officers of similar rank in the said regional offices who cannot be absorbed
by the local government unit shall be retained by the national government, without any
diminution of rank, salary or tenure.
(j) To ensure the active participation of the private sector in local governance, local
government units may, by ordinance, sell, lease, encumber, or otherwise dispose of public
economic enterprises owned by them in their proprietary capacity.
Costs may also be charged for the delivery of basic services or facilities enumerated in this
Section.
Section 18. Power to Generate and Apply Resources. - Local government units shall have the
power and authority to establish an organization that shall be responsible for the efficient and
effective implementation of their development plans, program objectives and priorities; to
create their own sources of revenues and to levy taxes, fees, and charges which shall accrue
exclusively for their use and disposition and which shall be retained by them; to have a just
share in national taxes which shall be automatically and directly released to them without need
of any further action; to have an equitable share in the proceeds from the utilization and
development of the national wealth and resources within their respective territorial
jurisdictions including sharing the same with the inhabitants by way of direct benefits; to
acquire, develop, lease, encumber, alienate, or otherwise dispose of real or personal property
held by them in their proprietary capacity and to apply their resources and assets for
productive, developmental, or welfare purposes, in the exercise or furtherance of their
governmental or proprietary powers and functions and thereby ensure their development into
self-reliant communities and active participants in the attainment of national goals.
Section 19. Eminent Domain. - A local government unit may, through its chief executive and
acting pursuant to an ordinance, exercise the power of eminent domain for public use, or
purpose or welfare for the benefit of the poor and the landless, upon payment of just
compensation, pursuant to the provisions of the Constitution and pertinent laws: Provided,
however, That the power of eminent domain may not be exercised unless a valid and definite
offer has been previously made to the owner, and such offer was not accepted: Provided,
further, That the local government unit may immediately take possession of the property upon
the filing of the expropriation proceedings and upon making a deposit with the proper court of
at least fifteen percent (15%) of the fair market value of the property based on the current tax
declaration of the property to be expropriated: Provided, finally, That, the amount to be paid
for the expropriated property shall be determined by the proper court, based on the fair market
value at the time of the taking of the property.
Section 20. Reclassification of Lands. -
(a) A city or municipality may, through an ordinance passed by the sanggunian after
conducting public hearings for the purpose, authorize the reclassification of agricultural lands
and provide for the manner of their utilization or disposition in the following cases: (1) when
the land ceases to be economically feasible and sound for agricultural purposes as determined
by the Department of Agriculture or (2) where the land shall have substantially greater
economic value for residential, commercial, or industrial purposes, as determined by the
sanggunian concerned: Provided, That such reclassification shall be limited to the following
percentage of the total agricultural land area at the time of the passage of the ordinance:
(1) For highly urbanized and independent component cities, fifteen percent (15%);
(2) For component cities and first to the third class municipalities, ten percent (10%); and
(3) For fourth to sixth class municipalities, five percent (5%): Provided, further, That
agricultural lands distributed to agrarian reform beneficiaries pursuant to Republic Act
Numbered Sixty-six hundred fifty-seven (R.A. No. 6657). otherwise known as "The
Comprehensive Agrarian Reform Law", shall not be affected by the said reclassification and
the conversion of such lands into other purposes shall be governed by Section 65 of said Act.
(b) The President may, when public interest so requires and upon recommendation of the
National Economic and Development Authority, authorize a city or municipality to reclassify
lands in excess of the limits set in the next preceding paragraph.
(c) The local government units shall, in conformity with existing laws, continue to prepare
their respective comprehensive land use plans enacted through zoning ordinances which shall
be the primary and dominant bases for the future use of land resources: Provided. That the
requirements for food production, human settlements, and industrial expansion shall be taken
into consideration in the preparation of such plans.
(d) Where approval by a national agency is required for reclassification, such approval shall
not be unreasonably withheld. Failure to act on a proper and complete application for
reclassification within three (3) months from receipt of the same shall be deemed as approval
thereof.
(e) Nothing in this Section shall be construed as repealing, amending, or modifying in any
manner the provisions of R.A. No. 6657.

Memo Circular No. 54 s. 1993, Office of the President (Prescribing the Guidelines governing
Sec. 20 of RA 7160 Authorizing Cities And Municipalities to Reclassify Agricultural Lands to
Non-Agricultural Uses.)

June 8, 1993
MEMORANDUM CIRCULAR NO. 54
PRESCRIBING THE GUIDELINES GOVERNING SECTION 20 OF RA 7160
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991
AUTHORIZING CITIES AND MUNICIPALITIES TO RECLASSIFY
AGRICULTURAL LANDS INTO NON-AGRICULTURAL USES
WHEREAS, RA 7160, otherwise known as the Local Government Code of
1991 (LGC), provides that cities and municipalities may reclassify agricultural lands into
non-agricultural uses within their respective jurisdictions, subject to the limitations and
other conditions prescribed under Section 20 of the LGC; TIEHSA
WHEREAS, the Implementing Rules and Regulations (IRR) of the LGC
provides that cities and municipalities shall continue to prepare their respective
comprehensive land use plans, enacted through zoning ordinances, subject to applicable
laws and rules and regulations;
WHEREAS, the IRR also prescribes that such plans shall serve as the primary
and dominant bases for future use of land resources and reclassification of agricultural
lands;
WHEREAS, the IRR further provides that the requirements for food
production, human settlements, ecological balance, and industrial expansion shall be
considered in the preparation of comprehensive land use plans;
WHEREAS, EO 129-A, s. of 1987, mandates the Department of Agrarian
Reform (DAR) to approve or disapprove the conversion, restructuring or readjustment of
agricultural lands into non-agricultural uses;
WHEREAS, the said EO has also vested in DAR exclusive authority to
approve or disapprove conversion of agricultural lands for residential, commercial,
industrial, and other land uses;
WHEREAS, Section 65 of RA 6657, otherwise known as the Comprehensive
Agrarian Reform Law of 1988 (CARL), likewise empowers DAR to authorize, under
certain conditions, the reclassification or conversion of lands awarded to agrarian reform
beneficiaries;
WHEREAS, pursuant to the pertinent provisions of EO 129-A (1987), EO 229
(1987), and RA 6657, DAR issued various rules and regulations governing the
conversion or reclassification of agricultural lands into non-agricultural uses;
WHEREAS, there is a need to harmonize the provisions of Section 20 of the
LGC with those of EO 129-A (1987), EO 229 (1987), RA 6657, and other national policy
issuances and other pertinent laws to ensure a more rational and holistic approach to land
use, taking into account the objectives of the CARL and the decentralized framework of
local governance;
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, by
virtue of the powers vested in me by law, upon the recommendation of the Oversight
Committee created under Sec. 533 of the LGC, do hereby order and direct.
SECTION 1. Scope of Limitations
(a) Cities and municipalities with comprehensive land use plans
reviewed and approved in accordance with EO 72 (1993), may
authorize the reclassification of agricultural lands into non-agricultural
uses and provide for the manner of their utilization or disposition,
subject to the limitations and other conditions prescribed in this Order.
(b) Agricultural lands may be classified in the following cases:
(1) when the land ceases to be economically feasible and
sound for agricultural purposes as determined by the
Department of Agriculture (DA), in accordance with the
standards and guidelines prescribed for the purpose; or
(2) where the land shall have substantially greater
economic value for residential, commercial, or industrial
purposes as determined by the sanggunian concerned, the
city/municipality concerned should notify the DA, HLRB,
DTI, DOT and other concerned agencies on the proposed
reclassification of agricultural lands furnishing them copies of
the report of the local development council including the draft
ordinance on the matter for their comments, proposals and
recommendations within seven (7) days upon receipt.
(c) However, such reclassification shall be limited to a maximum of
the percentage of the total agricultural land of a city or municipality at
the time of the passage of the ordinance as follows:
(1) For highly urbanized and independent component
cities; fifteen percent (15%);
(2) For component cities and first to third class
municipalities, ten percent (10%);
(3) For fourth to sixth class municipalities, five percent
(5%).
(d) In addition, the following types of agricultural lands shall not be
covered by the said reclassification: caCSDT
(1) Agricultural lands distributed to agrarian reform
beneficiaries subject to Section 65 of RA 6657;
(2) Agricultural lands already issued a notice of coverage
or voluntarily offered for coverage under CARP;
(3) Agricultural lands identified under AO 20, s. of 1992,
as non-negotiable for conversion as follows:
(i) All irrigated lands where water is available
to support rice and other crop production;
(ii) All irrigated lands where water is not
available for rice and other crop production but
within areas programmed for irrigation facility
rehabilitation by DA and National Irrigation
Administration (NIA); and
(iii) All irrigable lands already covered by
irrigation projects with firm funding commitments
at the time of the application for land conversion or
reclassification.
(e) The President may, when public interest so requires and upon
recommendation of the National Economic Development Authority
(NEDA), authorize a city or municipality to reclassify lands in excess of
the limits set in paragraph (d) hereof. For this purpose, NEDA is hereby
directed to issue the implementing guidelines governing the authority of
cities and municipalities to reclassify lands in excess of the limits
prescribed herein.
SECTION 2. Requirements and Procedures for Reclassification
(a) The city or municipal development council (CDC/MDC) shall
recommend to the sangguniang panlungsod or sangguniang bayan, as
the case may be, the reclassification of agricultural lands within its
jurisdiction based on the requirements of local development.
(b) Prior to the enactment of an ordinance reclassifying agricultural
lands as provided under Sec. 1 hereof, the sanggunian concerned must
first secure the following certificates from the concerned national
government agencies (NGAs):
(1) A certification from DA indicating
(i) the total area of existing agricultural lands in
the LGU concerned;
(ii) that such lands are not classified as non-
negotiable for conversion or reclassification under
AO 20 (1992); and
(iii) that the land ceases to be economically
feasible and sound for agricultural purposes in the
case of Sec. 1 (b-1).
(2) A certification from DAR indicating that such lands
are not distributed or not covered by a notice of coverage or
not voluntarily offered for coverage under CARP.
(c) The HLURB shall serve as the coordinating agency for the
issuance of the certificates as required under the preceding paragraph.
All applications for reclassification shall, therefore, be submitted by the
concerned LGUs to the HLRB, upon receipt of such application, the
HLRB shall conduct initial review to determine if:
(1) the city or municipality concerned has an existing
comprehensive land use plan reviewed and approved in
accordance with EO 72 (1993); and
(2) the proposed reclassification complies with the
limitations prescribed in SECTION 1 (d) hereof.
Upon determination that the above conditions have
been satisfied, the HLRB shall then consult with the
concerned agencies on the required certifications. The HLRB
shall inform the concerned agencies, city or municipality of
the result of their review and consultation. If the land being
reclassified is in excess of the limit, the application shall be
submitted to NEDA.
Failure of the HLRB and the NGAs to act on a proper
and complete application within three months from receipt of
the same shall be deemed as approved thereof.
(d) Reclassification of agricultural lands may be authorized through
an ordinance enacted by the sangguniang panlungsod or sangguniang
bayan, as the case may be, after conducting public hearings for the
purpose. Such ordinance shall be enacted and approved in accordance
with Articles 107 and 108 of the IRR of the LGC. STIHaE
(e) Provisions of Sec. 1 (b-2) hereof to the contrary notwithstanding,
the sanggunian concerned shall seek the advice of DA prior to the
enactment of an ordinance reclassifying agricultural lands. If the DA
has failed to act on such request within thirty (30) days from receipt
thereof, the same shall be deemed to have been complied with. Should
the land subject to reclassification is found to be still economically
feasible for agriculture, the DA shall recommend to the LGU concerned
alternative areas for development purposes.
(f) Upon issuance of the certifications enumerated in Section 2 (b)
hereof, the sanggunian concerned may now enact an ordinance
authorizing the reclassification of agricultural lands and providing for
the manner of their utilization or disposition. Such ordinance shall
likewise update the comprehensive land use plans of the LGU
concerned.
SECTION 3. Review of Ordinances Reclassifying Agricultural Lands
All ordinances authorizing the reclassification of agricultural lands shall be
subject to the review and approval by the province in the case of a component city or
municipality, or by HLRB in the case of a highly urbanized or independent component
city in accordance with EO 72 (1993).
SECTION 4. Use of the Comprehensive Land Use Plans and
Ordinances as Primary Reference Documents in Land Use Conversions
Pursuant to RA 6657 and EO 129-A, action on applications for land use
conversions on individual landholdings shall remain as the responsibility of DAR, which
shall utilize as its primary, reference documents the comprehensive land use plans and
accompanying ordinance passed upon and approved by the LGUs concerned, together
with the National Land Use Policy.
SECTION 5. Monitoring and Evaluation of Land Reclassification by
LGUs Concerned
Within six (6) months from the issuance of this Order, the HLRB shall design,
in coordination with DA, DAR, Department of the Interior and Local Government
(DILG), NEDA, League of Provinces, League of Cities and League of Municipalities,
and install a monitoring and evaluation system for the reclassification of agricultural
lands authorized by cities and municipalities.
The HLRB shall submit semestral reports to the Office of the President. A copy
thereof shall be furnished the DA, DAR, DILG, NEDA, League of Provinces, League of
Cities, and League of Municipalities.
SECTION 6. Transitory Provision
Provisions of Secs. 1 (a) and 2 (b) to the contrary notwithstanding, cities and
municipalities with land use plans approved not earlier than 01 January 1989, may
authorize the reclassification of agricultural lands in accordance with the limitations and
conditions prescribed in this Order. However, when the LGU has not reclassified up to
the said limitations, further reclassification may be exercised only within five years from
the approval of the plan. Thereafter, all reclassifications shall require approval from the
President pursuant to Sec. 1 (e) of this Circular.
SECTION 7. Effectivity
This Circular shall take effect immediately.
DONE in the City of Manila this 8th day of June in the year of Our Lord,
Nineteen Hundred and Ninety-three.


Reference: DAR Administrative Orders No. 1, s. 2002 2002 Rules and Regulations on the
Conversion of Agricultural Lands to Non-Agricultural Uses

The Hon. Carlos Fortich et. al. vs. The Hon. Renato Corona GR. No. 131457, April 24,
1998 (Decision, Opinion and Resolution of the Motion for Reconsideration)

Decision of the Office of the President on the Sumilao Case (on the Revocation of the
Conversion Order)


Session Nine- Mechanisms for Program Implementation

The Presidential Agrarian Reform Council (Secs. 41, 42, 43, 49)

SECTION 41. The Presidential Agrarian Reform Council. The Presidential Agrarian
Reform Council (PARC) shall be composed of the President of the Philippines as Chairman,
the Secretary of Agrarian Reform as Vice-Chairman and the following as members;
Secretaries of the Departments of Agriculture; Environment and Natural Resources; Budget
and Management; Local Government: Public Works and Highways; Trade and Industry;
Finance; Labor and Employment; Director-General of the National Economic and
Development Authority; President, Land Bank of the Philippines; Administrator, National
Irrigation Administration; and three (3) representatives of affected landowners to represent
Luzon, Visayas and Mindanao; six (6) representatives of agrarian reform beneficiaries, two (2)
each from Luzon, Visayas and Mindanao, provided that one of them shall be from the cultural
communities.

SECTION 42. Executive Committee. There shall be an Executive Committee (EXCOM) of
the PARC composed of the Secretary of the DAR as Chairman, and such other members as the
President may designate, taking into account Article XIII, Section 5 of the Constitution.
Unless otherwise directed by PARC, the EXCOM may meet and decide on any and all matters
in between meetings of the PARC: Provided, however, That its decisions must be reported to
the PARC immediately and not later than the next meeting.

SECTION 43. Secretariat. A PARC Secretariat is hereby established to provide general
support and coordinative services such as inter-agency linkages; program and project appraisal
and evaluation and general operations monitoring for the PARC. The Secretariat shall be
headed by the Secretary of Agrarian Reform who shall be assisted by an Undersecretary and
supported by a staff whose composition shall be determined by the PARC Executive
Committee and whose compensation shall be chargeable against the Agrarian Reform Fund.
All officers and employees of the Secretariat shall be appointed by the Secretary of Agrarian
Reform.

SECTION 49. Rules and Regulations. The PARC and the DAR shall have the power to
issue rules and regulations, whether substantive or procedural, to carry out the objects and
purposes of this Act. Said rules shall take effect ten (10) days after publication in two (2)
national newspapers of general circulation.

The Provincial Agrarian Reform Coordinating Committee (Sec. 44-45)

SECTION 44. Provincial Agrarian Reform Coordinating Committee (PARCCOM). A
Provincial Agrarian Reform Coordinating Committee (PARCCOM) is hereby created in each
province, composed of a Chairman, who shall be appointed by the President upon the
recommendation of the EXCOM, the Provincial Agrarian Reform Officer as Executive
Officer, and one representative each from the Departments of Agriculture, and of Environment
and Natural Resources and from the LBP, one representative each from existing farmers'
organizations, agricultural cooperatives and non-governmental organizations in the province;
two representatives from landowners, at least one of whom shall be a producer representing
the principal crop of the province, and two representatives from farmer and farmworker-
beneficiaries, at least one of whom shall be a farmer or farmworker representing the principal
crop of the province, as members: Provided, That in areas where there are cultural
communities, the latter shall likewise have one representative. The PARCCOM shall
coordinate and monitor the implementation of the CARP in the province. It shall provide
information on the provisions of the CARP, guidelines issued by the PARC and on the
progress of the CARP in the province.

SECTION 45. Province-by-Province Implementation. The PARC shall provide the
guidelines for a province-by-province implementation of the CARP. The ten-year program of
distribution of public and private lands in each province shall be adjusted from year by the
province's PARCCOM in accordance with the level of operations previously established by
the PARC, in every case ensuring that support services are available or have been programmed
before actual distribution is effected.



The Barangay Agrarian Reform Committee (Secs. 46-48)

SECTION 46. Barangay Agrarian Reform Committee (BARC). Unless otherwise provided
in this Act, the provisions of Executive Order No. 229 regarding the organization of the
Barangay Agrarian Reform Committee (BARC) shall be in effect.

SECTION 47. Functions of the BARC. In addition to those provided in Executive Order
No. 229, the BARC shall have the following functions: (a) Mediate and conciliate between
parties involved in an agrarian dispute including matters related to tenurial and financial
arrangements; acd (b) Assist in the identification of qualified beneficiaries and landowners
within the barangay; (c) Attest to the accuracy of the initial parcellary mapping of the
beneficiary's tillage; (d) Assist qualified beneficiaries in obtaining credit from lending
institutions; (e) Assist in the initial determination of the value of the land; (f) Assist the DAR
representatives in the preparation of periodic reports on the CARP implementation for
submission to the DAR; (g) Coordinate the delivery of support services to beneficiaries; and
(h) Perform such other functions as may be assigned by the DAR. (2) The BARC shall
endeavor to mediate, conciliate and settle agrarian disputes lodged before it within thirty (30)
days from its taking cognizance thereof. If after the lapse of the thirty day period, it is unable
to settle the dispute, it shall issue a certificate of its proceedings and shall furnish a copy
thereof upon the parties within seven (7) days after the expiration of the thirty-day period.

SECTION 48. Legal Assistance. The BARC or any member thereof may, whenever
necessary in the exercise of any of its functions hereunder, seek the legal assistance of the
DAR and the provincial, city, or municipal government.


The Department of Agrarian Reform (Executive Order 129-A, dated July 26, 1987)

Sec. 4. Mandate. The Department shall be responsible for implementing the Comprehensive
Agrarian Reform Program and, for such purpose, it is authorized to:
a) Acquire, determine the value of, subdivide into family-size farms or organize into collective
of cooperative farms and develop private agricultural lands for distribution to qualified tillers,
actual occupants, and displaced urban poor;
b) Administer and dispose all cultivable portions of the public domain declared as alienable
and disposable for agricultural purposes transferred to it by the Department of Environment
and Natural Resources;
c) Acquire, by purchase or grant, real estate properties suited for agriculture that have been
foreclosed by the national government;
d) Undertake land consolidation, land reclamation, land forming, and conservation in areas
subject to agrarian reform;
e) Facilitate the compensation of landowners covered by agrarian reform;
f) Issue emancipation patents to farmers and farmworkers who have been given lands under
the agrarian reform program as may be provided for by law;
g) Provide free legal services to agrarian reform beneficiaries and resolve agrarian conflicts
and land tenure problems;
h) Develop and implement alternative land tenure systems such as cooperative farming and
agro-industrial estates, among others;
i) Undertake land use management and land development studies and projects in agrarian
reform areas;
k) Approve or disapprove the conversion, restructuring or readjustment of agricultural lands
into non-agricultural uses;
l) Monitor and evaluate the progress of agrarian reform implementation;
m) Assist the Office of the Solicitor General in providing evidence for the reversion
proceedings to be filed with respect to lands of the public domain, occupied by private
individuals and their tenants or farmworkers which are subject to land reform, and real rights
connected therewith which have been acquired in violation of the Constitution or the public
land laws or through corrupt practices;
n) Submit progress reports to the Office of the President, to Congress, and to the people at the
end of each year and at all times make available to the general public information on the
current status of its programs.
Sec. 5. Powers and Functions. Pursuant to the mandate the Department, and in order to ensure
the successful implementation of the Comprehensive Agrarian Reform Program, the
department is hereby authorized to:
a) Advise the President and the Presidential Agrarian Reform Council on the promulgation of
executive/administrative orders, other regulative issuances and legislative proposals designed
to strengthen agrarian reform and protect the interests of the benefeciaries thereof;
b) Implement all agrarian laws, and for this purpose, punish for contempt and issue subpoena,
subpoena duces tecum, writs of execution of its decisions, and other legal processes to ensure
successful and expeditious program implementation; the decisions of the Department may in
proper cases, be appealed to the Regional Trial Courts but shall be immediately executory
notwithstanding such appeal;
c) Establish and promulgate operational policies, rules and regulations and priorities for
agrarian reform implementation;
d) Coordinate program implementation with the Land Bank of the Philippines and other
relevant civilian and military government agencies mandated to support the agrarian reform
program;
e) Acquire, administer, distribute, and develop agricultural lands for agrarian reform purposes;
f) Undertake surveys of lands covered by agrarian reform;
g) Issue emancipation patents to farmers and farmworkers covered by agrarian reform for both
private and public lands and when necessary make administrative corrections of the same;
h) Provide free legal services to agrarian reform beneficiaries and resolve agrarian conflicts
and land-tenure related problems as may be provided for by law;
i) Promote the organization and development of cooperatives and other associations of
agrarian reform beneficiaries;
j) Conduct continuing education and promotion programs on agrarian reform for beneficiaries,
land-owners, government personnel, and the general public;
k) Institutionalize the participation of farmers, farmworkers, other beneficiaries, and agrarian
reform advocates in agrarian reform policy formulation, program implementation, and
evaluation;
l) Have exclusive authority to approve or disapprove conversion of agricultural lands for
residential, commercial, industrial, and other land uses as may be provided for by law;
m) Call upon any government agency, including the Armed Forces of the Philippines, and
non-governmental organizations (NGOs) to extend full support and cooperation to program
implementation;
n) Exercise such other powers and functions as may be provided for by law or directed by the
President, to promote efficiency and effectiveness in the delivery of public services.

The DAR Adjudication Board (Sec. 13, EO 129-A)

Sec. 13. Agrarian Reform Adjudication Board. There is hereby created an Agrarian Reform
Adjudication Board under the Office of the Secretary. The Board shall be composed of the
Secretary as Chairman, two (2) Undersecretaries as may be designated by the Secretary, the
Assistant Secretary for Legal Affairs, and three (3) others to be appointed by the President
upon the recommendation of the Secretary as members. A Secretariat shall be constituted to
support the Board. The Board shall assume the powers and functions with respect to the
adjudication of agrarian reform cases under Executive Order No. 229 and this Executive
Order. These powers and functions may be delegated to the regional offices of the Department
in accordance with rules and regulations to be promulgated by the Board.

Financing the Program

Sec. 63 of RA 6657, in relation to Secs. 21 and 22 of EO 229

SECTION 63. Funding Source. The initial amount needed to implement this Act for the
period of ten (10) years upon approval hereof shall be funded from the Agrarian Reform Fund
created under Sections 20 and 21 of Executive Order No. 229. Additional amounts are hereby
authorized to be appropriated as and when needed to augment the Agrarian Reform Fund in
order to fully implement the provisions of this Act. Sources of funding or appropriations shall
include the following: a) Proceeds of the sales of the Assets Privatization Trust; b) All receipts
from assets recovered and from sales of ill-gotten wealth recovered through the Presidential
Commission on Good Government; c) Proceeds of the disposition of the properties of the
Government in foreign countries; d) Portion of amounts accruing to the Philippines from all
sources of official foreign grants and concessional financing from all countries, to be used for
the specific purposes of financing production credits, infrastructures, and other support
services required by this Act; cdt (e) Other government funds not otherwise appropriated. All
funds appropriated to implement the provisions of this Act shall be considered continuing
appropriations during the period of its implementation.

Sec. 20. Agrarian Reform Fund. As provided in Proclamation No. 131 dated July 22, 1987, a
special fund is created, known as The Agrarian Reform Fund, an initial amount of FIFTY
BILLION PESOS (P50 billion) to cover the estimated cost of the CARP from 1987 to 1992
which shall be sourced from the receipts of the sale of the assets of the Asset Privatization
Trust (APT) and receipts of sale of ill-gotten wealth recovered through the Presidential
Commission on Good Government and such other sources as government may deem
appropriate. The amount collected and accruing to this special fund shall be considered
automatically appropriated for the purpose authorized in this Order.
Sec. 21. Supplemental Appropriations. The amount of TWO BILLION SEVEN HUNDRED
MILLION PESOS (P2.7 billion) is hereby appropriated to cover the supplemental
requirements of the CARP for 1987, to be sourced from the receipts of the sale of ill-gotten
wealth recovered through the Presidential Commission on Good Government and the proceeds
from the sale of assets by the APT. The amount collected from these sources shall accrue to
The Agrarian Reform Fund and shall likewise be considered automatically appropriated for
the purpose authorized in this Order.


RA 8532. (1998) Augmenting the Agrarian Reform Fund with an Additional Fifty Billion
Peso Budget

February 23, 1998
REPUBLIC ACT NO. 8532
AN ACT STRENGTHENING FURTHER THE COMPREHENSIVE AGRARIAN
REFORM PROGRAM (CARP), BY PROVIDING AUGMENTATION FUND
THEREFOR, AMENDING FOR THE PURPOSE SECTION 63 OF REPUBLIC ACT
NO. 6657, OTHERWISE KNOWN AS "THE CARP LAW OF 1988"
SECTION 1. Section 63 of Republic Act No. 6657, otherwise known
as the Comprehensive Agrarian Reform Law of 1988 is hereby amended to read as
follows: cdrep
"Section 63. Funding Source. The amount needed to implement this Act until
the year 2008 shall be funded from the Agrarian Reform Fund.
"Additional amounts necessary for this purpose are hereby authorized to be
appropriated in excess of the initial funds, amounting to Fifty billion pesos
(P50,000,000,000.00) provided under Sections 20 and 21 of Executive Order No.
229.
"The additional amount hereby authorized to be appropriated shall in no case exceed
Fifty billion pesos (P50,000,000,000.00).
"Sources of funding or appropriations shall include the following:
"a) Proceeds of the sales of the Assets Privatization Trust;
"b) All receipts from assets recovered and from sales of ill-gotten wealth
recovered through the Presidential Commission on Good Government;
"c) Proceeds of the disposition of the properties of the Government in foreign
countries, for the specific purposes of financing production credits, infrastructure
and other support services required by this Act; cdtai
"d) All income and collections arising from the agrarian reform operations,
projects and programs of CARP implementing agencies;
"e) Portion of amounts accruing to the Philippines from all sources of official
foreign aid grants and concessional financing from all countries, to be used for the
specific purposes of financing production, credits, infrastructures, and other support
services required by this Act;
"f) Yearly appropriations of no less than Three billion pesos (P3,000,000,000.00)
from the General Appropriations Act;
"g) Other government funds not otherwise appropriated."
SECTION 2. This Act shall take effect within fifteen (15) days
following the completion of its publication in at least two (2) newspapers of general
circulation. cdlex
Approved: February 23, 1998

RA 9700, Sec. 21 amending Sec. 63 of RA 6657

Section 21. Section 63 of Republic Act No. 6657, as amended, is hereby further amended to
read as follows:
"SEC. 63. Funding Source. - The amount needed to further implement the CARP as provided
in this Act, until June 30, 2014, upon expiration of funding under Republic Act No. 8532 and
other pertinent laws, shall be funded from the Agrarian Reform Fund and other funding
sources in the amount of at least One hundred fifty billion pesos (P150,000,000,000.00).
"Additional amounts are hereby authorized to be appropriated as and when needed to augment
the Agrarian Reform Fund in order to fully implement the provisions of this Act during the
five (5)-year extension period.
"Sources of funding or appropriations shall include the following:
"(a) Proceeds of the sales of the Privatization and Management Office (PMO);
"e)All receipts from assets recovered and from sales of ill-gotten wealth recovered through the
PCGG excluding the amount appropriated for compensation to victims of human rights
violations under the applicable law;
"(c) Proceeds of the disposition and development of the properties of the Government in
foreign countries, for the specific purposes of financing production credits, infrastructure and
other support services required by this Act;
"(d) All income and, collections of whatever form and nature arising from the agrarian reform
operations, projects and programs of the DAR and other CARP implementing agencies;
"(e) Portion of amounts accruing to the Philippines from all sources of official foreign. aid
grants and concessional financing from all countries, to be used for the specific purposes of
financing productions, credits, infrastructures, and other support services required by this Act:
"(f) Yearly appropriations of no less than Five billion pesos (P5,000,000,000.00) from the
General Appropriations Act;
"(g) Gratuitous financial assistance from legitimate sources; and
"(h) Other government funds not otherwise appropriated.
"All funds appropriated to implement the provisions of this Act shall be considered continuing
appropriations during the period of its implementation: Provided, That if the need arises,
specific amounts for bond redemptions, interest payments and other existing obligations
arising from the implementation of the program shall be included in the annual General
Appropriations Act: Provided, further, That all just compensation payments to landowners,
including execution of judgments therefore, shall only be sourced from the Agrarian Reform
Fund: Provided, however, That just compensation payments that cannot be covered within the
approved annual budget of the program shall be chargeable against the debt service program
of the national government, or any unprogrammed item in the General Appropriations Act:
Provided, finally, That after the completion of the land acquisition and distribution component
of the CARP, the yearly appropriation shall be allocated fully to support services, agrarian
justice delivery and operational requirements of the DAR and the other CARP implementing
agencies."