REPUBLIC ACT NO.
6657 or representation of persons in negotiating, fixing, maintaining, changing, or
June 10, 1988
AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN REFORM
PROGRAM TO PROMOTE SOCIAL JUSTICE AND
INDUSTRIALIZATION, PROVIDING THE MECHANISM FOR ITS
IMPLEMENTATION, AND FOR OTHER PURPOSES
CHAPTER I
Preliminary Chapter
SECTION 1. Title. This Act shall be known as the Comprehensive
Agrarian Reform Law of 1988.
SECTION 2. Declaration of Principles and Policies. It is the policy of
the State to pursue a Comprehensive Agrarian Reform Program (CARP). The
welfare of the landless farmers and farmworkers will receive the highest
consideration to promote social justice and to move the nation toward sound
rural development and industrialization, and the establishment of owner
cultivatorship of economic-size farms as the basis of Philippine agriculture. aisa
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To this end, a more equitable distribution and ownership of land, with due regard
to the rights of landowners to just compensation and to the ecological needs of
the nation, shall be undertaken to provide farmers and farmworkers with the
opportunity to enhance their dignity and improve the quality of their lives
through greater productivity of agricultural lands.
The agrarian reform program is founded on the right of farmers and regular
farmworkers, who are landless, to own directly or collectively the lands they till
or, in the case of other farm workers, to receive a just share of the fruits thereof.
To this end, the State shall encourage and undertake the just distribution of all
agricultural lands, subject to the priorities and retention limits set forth in this
Act, having taken into account ecological, developmental, and equity
considerations, and subject to the payment of just compensation. The State shall
respect the right of small landowners, and shall provide incentives for voluntary
land-sharing.
The State shall recognize the right of farmers, farmworkers and landowners, as
well as cooperatives and other independent farmers' organizations, to participate
in the planning, organization, and management of the program, and shall provide
support to agriculture through appropriate technology and research, and adequate
financial production, marketing and other support services.
The State shall apply the principles of agrarian reform, or stewardship, whenever
applicable, in accordance with law, in the disposition or utilization of other
natural resources, including lands of the public domain, under lease or
concession, suitable to agriculture, subject to prior rights, homestead rights of
small settlers and the rights of indigenous communities to their ancestral lands.
The State may resettle landless farmers and farmworkers in its own agricultural
estates, which shall be distributed to them in the manner provided by law.
By means of appropriate incentives, the State shall encourage the formation and
maintenance of economic-size family farms to be constituted by individual
beneficiaries and small landowners.
The State shall protect the rights of subsistence fishermen, especially of local
communities, to the preferential use of communal marine and fishing resources,
both inland and offshore. It shall provide support to such fishermen through
appropriate technology and research, adequate financial, production and
marketing assistance and other services. The State shall also protect, develop and
conserve such resources. The protection shall extend to offshore fishing grounds
of subsistence fishermen against foreign intrusion. Fishworkers shall receive a
just share from their labor in the utilization of marine and fishing resources.
The State shall be guided by the principles that land has a social function and
land ownership has a social responsibility. Owners of agricultural lands have the
obligation to cultivate directly or through labor administration the lands they
own and thereby make the land productive.
The State shall provide incentives to landowners to invest the proceeds of the
agrarian reform program to promote industrialization, employment and
privatization of public sector enterprises. Financial instruments used as payment
for lands shall contain features that shall enhance negotiability and acceptability
in the marketplace.
The State may lease undeveloped lands of the public domain to qualified entities
for the development of capital-intensive farms, and traditional and pioneering
crops especially those for exports subject to the prior rights of the beneficiaries
under this Act.
SECTION 3. Definitions. For the purpose of this Act, unless the
context indicates otherwise:
(a) Agrarian Reform means redistribution of lands, regardless of crops or
fruits produced, to farmers and regular farmworkers who are landless,
irrespective of tenurial arrangement, to include the totality of factors and support
services designed to lift the economic status of the beneficiaries and all other
arrangements alternative to the physical redistribution of lands, such as
production or profit-sharing, labor administration, and the distribution of shares
of stocks, which will allow beneficiaries to receive a just share of the fruits of the
lands they work. cdasia
(b) Agriculture, Agricultural Enterprise or Agricultural Activity means the
cultivation of the soil, planting of crops, growing of fruit trees, raising of
livestock, poultry or fish, including the harvesting of such farm products, and
other farm activities and practices performed by a farmer in conjunction with
such farming operations done by person whether natural or juridical.
(c) Agricultural Land refers to land devoted to agricultural activity as defined
in this Act and not classified as mineral, forest, residential, commercial or
industrial land.
(d) Agrarian Dispute refers to any controversy relating to tenurial
arrangements, whether leasehold, tenancy, stewardship or otherwise, over lands
devoted to agriculture, including disputes concerning farmworkers' associations
seeking to arrange terms or conditions of such tenurial arrangements.
It includes any controversy relating to compensation of lands acquired under this
Act and other terms and conditions of transfer of ownership from landowners to
farmworkers, tenants and other agrarian reform beneficiaries, whether the
disputants stand in the proximate relation of farm operator and beneficiary,
landowner and tenant, or lessor and lessee.
(e) Idle or Abandoned Land refers to any agricultural land not cultivated,
tilled or developed to produce any crop nor devoted to any specific economic
purpose continuously for a period of three (3) years immediately prior to the
receipt of notice of acquisition by the government as provided under this Act, but
does not include land that has become permanently or regularly devoted to non-
agricultural purposes. It does not include land which has become unproductive
by reason offorce majeure or any other fortuitous event, provided that prior to
such event, such land was previously used for agricultural or other economic
purpose.
(f) Farmer refers to a natural person whose primary livelihood is cultivation
of land or the production of agricultural crops, either by himself, or primarily
with the assistance of his immediate farm household, whether the land is owned
by him, or by another person under a leasehold or share tenancy agreement or
arrangement with the owner thereof.
(g) Farmworker is a natural person who renders service for value as an
employee or laborer in an agricultural enterprise or farm regardless of whether
his compensation is paid on a daily, weekly, monthly or "pakyaw" basis. The
term includes an individual whose work has ceased as a consequence of, or in
connection with, a pending agrarian dispute and who has not obtained a
substantially equivalent and regular farm employment.
(h) Regular Farmworker is a natural person who is employed on a permanent
basis by an agricultural enterprise or farm.
(i) Seasonal Farmworker is a natural person who is employed on a recurrent,
periodic or intermittent basis by an agricultural enterprise or farm, whether as a
permanent or a non-permanent laborer, such as "dumaan", "sacada", and the like.
(j) Other Farmworker is a farmworker who does not fall under paragraphs
(g), (h) and (i).
(k) Cooperatives shall refer to organizations composed primarily of small
agricultural producers, farmers, farmworkers, or other agrarian reform
beneficiaries who voluntarily organize themselves for the purpose of pooling
land, human, technological, financial or other economic resources, and operated
on the principle of one member, one vote. A juridical person may be a member
of a cooperative, with the same rights and duties as a natural person.
CHAPTER II
Coverage
SECTION 4. Scope. The Comprehensive Agrarian Reform Law of
1989 shall cover, regardless of tenurial arrangement and commodity produced,
all public and private agricultural lands, as provided in Proclamation No. 131 and
Executive Order No. 229, including other lands of the public domain suitable for
agriculture.
More specifically the following lands are covered by the Comprehensive
Agrarian Reform Program:
(a) All alienable and disposable lands of the public domain devoted to or
suitable for agriculture. No reclassification of forest or mineral lands to
agricultural lands shall be undertaken after the approval of this Act until
Congress, taking into account ecological, developmental and equity
considerations, shall have determined by law, the specific limits of the public
domain.
(b) All lands of the public domain in excess of the specific limits as
determined by Congress in the preceding paragraph; cda
(c) All other lands owned by the Government devoted to or suitable for
agriculture; and
(d) All private lands devoted to or suitable for agriculture regardless of the
agricultural products raised or that can be raised thereon.
SECTION 5. Schedule of Implementation. The distribution of all lands
covered by this Act shall be implemented immediately and completed within ten
(10) years from the effectivity thereof.
SECTION 6. Retention Limits. Except as otherwise provided in this
Act, no person may own or retain, directly or indirectly, any public or private
agricultural land, the size of which shall vary according to factors governing a
viable family-size farm, such as commodity produced, terrain, infrastructure, and
soil fertility as determined by the Presidential Agrarian Reform Council (PARC)
created hereunder, but in no case shall retention by the landowner exceed five (5)
hectares. Three (3) hectares may be awarded to each child of the landowner,
subject to the following qualifications: (1) that he is at least fifteen (15) years of
age; and (2) that he is actually tilling the land or directly managing the
farm: Provided, That landowners whose lands have been covered by Presidential
Decree No. 27 shall be allowed to keep the areas originally retained by them
thereunder: Provided, further, That original homestead grantees or their direct
compulsory heirs who still own the original homestead at the time of the
approval of this Act shall retain the same areas as long as they continue to
cultivate said homestead.
The right to choose the area to be retained, which shall be compact or
contiguous, shall pertain to the landowner: Provided, however, That in case the
area selected for retention by the landowner is tenanted, the tenant shall have the
option to choose whether to remain therein or be a beneficiary in the same or
another agricultural land with similar or comparable features. In case the tenant
chooses to remain in the retained area, he shall be considered a leaseholder and
shall lose his right to be a beneficiary under this Act. In case the tenant chooses
to be a beneficiary in another agricultural land, he loses his right as a leaseholder
to the land retained by the landowner. The tenant must exercise this option
within a period of one (1) year from the time the landowner manifests his choice
of the area for retention.
In all cases, the security of tenure of the farmers or farmworkers on the land prior
to the approval of this Act shall be respected.
Upon the effectivity of this Act, any sale, disposition, lease, management,
contract or transfer of possession of private lands executed by the original
landowner in violation of the Act shall be null and void: Provided, however, That
those executed prior to this Act shall be valid only when registered with the
Register of Deeds within a period of three (3) months after the effectivity of this
Act. Thereafter, all Registers of Deeds shall inform the Department of Agrarian
Reform (DAR) within thirty (30) days of any transaction involving agricultural
lands in excess of five (5) hectares.
SECTION 7. Priorities. The Department of Agrarian Reform (DAR) in
coordination with the Presidential Agrarian Reform Council (PARC) shall plan
and program the acquisition and distribution of all agricultural lands through a
period of ten (10) years from the effectivity of this Act. Lands shall be acquired
and distributed as follows:
Phase One: Rice and corn lands under Presidential Decree No. 27; all idle or
abandoned lands; all private lands voluntarily offered by the owners for agrarian
reform; all lands foreclosed by the government financial institutions; all lands
acquired by the Presidential Commission on Good Government (PCGG); and all
other lands owned by the government devoted to or suitable for agriculture,
which shall be acquired and distributed immediately upon the effectivity of this
Act, with the implementation to be completed within a period of not more than
four (4) years;
Phase Two: All alienable and disposable public agricultural lands; all arable
public agricultural lands under agro-forest, pasture and agricultural leases
already cultivated and planted to crops in accordance with Section 6, Article XIII
of the Constitution; all public agricultural lands which are to be opened for new
development and resettlement; and all private agricultural lands in excess of fifty
(50) hectares, insofar as the excess hectarage is concerned, to implement
principally the rights of farmers and regular farmworkers, who are the landless,
to own directly or collectively the lands they till, which shall be distributed
immediately upon the effectivity of this Act, with the implementation to be
completed within a period of not more than four (4) years. cdasia
Phase Three: All other private agricultural lands commencing with large
landholdings and proceeding to medium and small landholdings under the
following schedule:
(a) Landholdings above twenty-four (24) hectares up to fifty (50) hectares, to
begin on the fourth (4th) year from the effectivity of this Act and to be
completed within three (3) years; and
(b) Landholdings from the retention limit up to twenty-four (24) hectares, to
begin on the sixth (6th) year from the effectivity of this Act and to be completed
within four (4) years; to implement principally the right of farmers and regular
farmworkers who are landless, to own directly or collectively the lands they till.
The schedule of acquisition and redistribution of all agricultural lands covered by
this program shall be made in accordance with the above order of priority, which
shall be provided in the implementing rules to be prepared by the Presidential
Agrarian Reform Council (PARC), taking into consideration the following; the
need to distribute land to the tillers at the earliest practicable time; the need to
enhance agricultural productivity; and the availability of funds and resources to
implement and support the program.
In any case, the PARC, upon recommendation by the Provincial Agrarian
Reform Coordinating Committee (PARCCOM), may declare certain provinces
or region as priority land reform areas, in which the acquisition and distribution
of private agricultural lands therein may be implemented ahead of the above
schedules.
In effecting the transfer within these guidelines, priority must be given to lands
that are tenanted.
The PARC shall establish guidelines to implement the above priorities and
distribution scheme, including the determination of who are qualified
beneficiaries: Provided, That an owner-tiller may be a beneficiary of the land he
does not own but is actually cultivating to the extent of the difference between
the area of the land he owns and the award ceiling of three (3) hectares.
SECTION 8. Multinational Corporations. All lands of the public
domain leased, held or possessed by multinational corporations or associations,
and other lands owned by the government or by government-owned or controlled
corporations, associations, institutions, or entities, devoted to existing and
operational agri-business or agro-industrial enterprises, operated by multinational
corporations and associations, shall be programmed for acquisition and
distribution immediately upon the effectivity of this Act, with the
implementation to be completed within three (3) years.
Lands covered by the paragraph immediately preceding, under lease,
management, grower or service contracts, and the like, shall be disposed of as
follows:
(a) Lease, management, grower or service contracts covering such lands
covering an aggregate area in excess of 1,000 hectares, leased or held by foreign
individuals in excess of 500 hectares are deemed amended to conform with the
limits set forth in Section 3 of Article XII of the Constitution.
(b) Contracts covering areas not in excess of 1,000 hectares in the case of
such corporations and associations, and 500 hectares, in the case of such
individuals, shall be allowed to continue under their original terms and
conditions but not beyond August 29, 1992, or their valid termination, whichever
comes sooner, after which, such agreements shall continue only when confirmed
by the appropriate government agency. Such contracts shall likewise continue
even after the lands has been transferred to beneficiaries or awardees thereof,
which transfer shall be immediately commenced and implemented and
completed within the period of three (3) years mentioned in the first paragraph
hereof.
(c) In no case will such leases and other agreements now being implemented
extend beyond August 29, 1992, when all lands subject hereof shall have been
distributed completely to qualified beneficiaries or awardees.
Such agreements can continue thereafter only under a new contract between the
government or qualified beneficiaries or awardees, on the one hand, and said
enterprises, on the other.
Lands leased, held or possessed by multinational corporations, owned by private
individuals and private non-governmental corporations, associations, institutions
and entities, citizens of the Philippines, shall be subject to immediate compulsory
acquisition and distribution upon the expiration of the applicable lease,
management, grower or service contract in effect as of August 29, 1987, or
otherwise, upon its valid termination, whichever comes sooner, but not later than
after ten (10) years following the effectivity of the Act. However during the said
period of effectivity, the government shall take steps to acquire these lands for
immediate distribution thereafter.
In general, lands shall be distributed directly to the individual worker-
beneficiaries. In case it is not economically feasible and sound to divide the land,
then they shall form a workers' cooperative or association which will deal with
the corporation or business association or any other proper party for the purpose
of entering into a lease or growers agreement and for all other legitimate
purposes. Until a new agreement is entered into by and between the workers'
cooperative or association and the corporation or business association or any
other proper party, any agreement existing at the time this Act takes effect
between the former and the previous landowner shall be respected by both the
workers' cooperative or association and the corporation, business, association or
such other proper party. In no case shall the implementation or application of this
Act justify or result in the reduction of status or diminution of any benefits
received or enjoyed by the worker-beneficiaries, or in which they may have a
vested right, at the time this Act becomes effective,.
The provisions of Section 32 of this Act, with regard to production and income-
sharing shall apply to farms operated by multinational corporations.
During the transition period, the new owners shall be assisted in their efforts to
learn modern technology in production. Enterprises which show a willingness
and commitment and good-faith efforts to impart voluntarily such advanced
technology will be given preferential treatment where feasible.
In no case shall a foreign corporation, association, entity or individual enjoy any
rights or privileges better than those enjoyed by a domestic corporation,
association, entity or individual. cd i
SECTION 9. Ancestral Lands. For purposes of this Act, ancestral lands
of each indigenous cultural community shall include, but not be limited to, lands
in the actual, continuous and open possession and occupation of the community
and its members: Provided, That the Torrens Systems shall be respected.
The right of these communities to their ancestral lands shall be protected to
ensure their economic, social and cultural well-being. In line with the principles
of self-determination and autonomy, the systems of land ownership, land use,
and the modes of settling land disputes of all these communities must be
recognized and respected.
Any provision of law to the contrary notwithstanding, the PARC may suspend
the implementation of this Act with respect to ancestral lands for the purpose of
identifying and delineating such lands: Provided, That in the autonomous
regions, the respective legislatures may enact their own laws on ancestral domain
subject to the provisions of the Constitution and the principles enunciated in this
Act and other national laws.
SECTION 10. Exemptions and Exclusions. Lands actually, directly and
exclusively used and found to be necessary for parks, wildlife, forest reserves,
reforestation, fish sanctuaries and breeding grounds, watersheds, and mangroves,
national defense, school sites and campuses including experimental farm stations
operated by public or private schools for educational purposes, seeds and
seedlings research and pilot production centers, church sites and convents
appurtenant thereto, mosque sites and Islamic centers appurtenant thereto,
communal burial grounds and cemeteries, penal colonies and penal farms
actually worked by the inmates, government and private research and quarantine
centers and all lands with eighteen percent (18%) slope and over, except those
already developed shall be exempt from the coverage of the Act.
SECTION 11. Commercial Farming. Commercial farms, which are
private agricultural lands devoted to commercial livestock, poultry and swine
raising, and aquaculture including saltbeds, fishponds and prawn ponds, fruit
farms, orchards, vegetable and cut-flower farms, and cacao, coffee and rubber
plantations, shall be subject to immediate compulsory acquisition and
distribution after (10) years from the effectivity of the Act. In the case of new
farms, the ten-year period shall begin from the first year of commercial
production and operation, as determined by the DAR. During the ten-year period,
the government shall initiate the steps necessary to acquire these lands, upon
payment of just compensation for the land and the improvements thereon,
preferably in favor of organized cooperatives or associations, which shall
hereafter manage the said lands for the worker-beneficiaries.
If the DAR determines that the purposes for which this deferment is granted no
longer exist, such areas shall automatically be subject to redistribution.
The provisions of Section 32 of the Act, with regard to production-and income-
sharing, shall apply to commercial farms.
CHAPTER III
Improvement of Tenurial and Labor Relations
SECTION 12. Determination of Lease Rentals. In order to protect and
improve the tenurial and economic status of the farmers in tenanted lands under
the retention limit and lands not yet acquired under this Act, the DAR is
mandated to determine and fix immediately the lease rentals thereof in
accordance with Section 34 of Republic Act No. 3844, as amended: Provided,
That the DAR shall immediately and periodically review and adjust the rental
structure for different crops, including rice and corn, or different regions in order
to improve progressively the conditions of the farmer, tenant or lessee.
SECTION 13. Production-Sharing Plan. Any enterprise adopting the
scheme provided for in Section 32 or operating under a production venture,
lease, management contract or other similar arrangement and any farm covered
by Sections 8 and 11 hereof is hereby mandated to execute within ninety (90)
days from the effectivity of this Act, a production-sharing plan, under guidelines
prescribed by the appropriate government agency.
Nothing herein shall be construed to sanction the diminution of any benefits such
as salaries, bonuses, leaves and working conditions granted to the employee-
beneficiaries under existing laws, agreements, and voluntary practice by the
enterprise, nor shall the enterprise and its employee-beneficiaries be prevented
from entering into any agreement with terms more favorable to the latter.
CHAPTER IV
Registration
SECTION 14. Registration of Landowners. Within one hundred eighty
(180) days from the effectivity of this Act, all persons, natural or juridical,
including government entities, that own or claim to own agricultural lands,
whether in their names or in the name of others, except those who have already
registered pursuant to Executive Order No. 229, who shall be entitled to such
incentives as may be provided for the PARC, shall file a sworn statement in the
proper assessor's office in the form to be prescribed by the DAR, stating the
following information:
(a) the description and area of the property;
(b) the average gross income from the property for at least three (3) years;
(c) the names of all tenants and farmworkers therein; cda
(d) the crops planted in the property and the area covered by each crop as of
June 1, 1987;
(e) the terms of mortgages, lease, and management contracts subsisting as of
June 1, 1987, and
(f) the latest declared market value of the land as determined by the city or
provincial assessor.
SECTION 15. Registration of Beneficiaries. The DAR in coordination
with the Barangay Agrarian Reform Committee (BARC) as organized in this
Act, shall register all agricultural lessees, tenants and farmworkers who are
qualified to be beneficiaries of the CARP. These potential beneficiaries with the
assistance of the BARC and the DAR shall provide the following data:
(a) names and members of their immediate farm household;
(b) owners or administrators of the lands they work on and the length of
tenurial relationship;
(c) location and area of the land they work;
(d) crops planted; and
(e) their share in the harvest or amount of rental paid or wages received.
A copy of the registry or list of all potential CARP beneficiaries in the barangay
shall be posted in the barangay hall, school or other public buildings in the
barangay where it shall be open to inspection by the public at all reasonable
hours.
CHAPTER V
Land Acquisition
SECTION 16. Procedure for Acquisition of Private Lands. For purposes
of acquisition of private lands, the following procedures shall be followed:
(a) After having identified the land, the landowners and the beneficiaries, the
DAR shall send its notice to acquire the land to the owners thereof, by personal
delivery or registered mail, and post the same in a conspicuous place in the
municipal building and barangay hall of the place where the property is located.
Said notice shall contain the offer of the DAR to pay a corresponding value in
accordance with the valuation set forth in Sections 17, 18, and other pertinent
provisions hereof.
(b) Within thirty (30) days from the date of receipt of written notice by
personal delivery or registered mail, the landowner, his administrator or
representative shall inform the DAR of his acceptance or rejection of the offer.
(c) If the landowner accepts the offer of the DAR, the Land Bank of the
Philippines (LBP) shall pay the landowner the purchase price of the land within
thirty (30) days after he executes and delivers a deed of transfer in favor of the
government and surrenders the Certificate of Title and other muniments of title.
(d) In case of rejection or failure to reply, the DAR shall conduct summary
administrative proceedings to determine the compensation for the land requiring
the landowner, the LBP and other interested parties to submit evidence as to the
just compensation for the land, within fifteen (15) days from the receipt of the
notice. After the expiration of the above period, the matter is deemed submitted
for decision. The DAR shall decide the case within thirty (30) days after it is
submitted for decision.
(e) Upon receipt by the landowner of the corresponding payment or, in case
of rejection or no response from the landowner, upon the deposit with an
accessible bank designated by the DAR of the compensation in cash or in LBP
bonds in accordance with this Act, the DAR shall take immediate possession of
the land and shall request the proper Register of Deeds to issue a Transfer
Certificate of Title (TCT) in the name of the Republic of the Philippines. The
DAR shall thereafter proceed with the redistribution of the land to the qualified
beneficiaries.
(f) Any party who disagrees with the decision may bring the matter to the
court of proper jurisdiction for final determination of just compensation.
CHAPTER VI
Compensation
SECTION 17. Determination of Just Compensation. In determining just
compensation, the cost of acquisition of the land, the current value of the like
properties, its nature, actual use and income, the sworn valuation by the owner,
the tax declarations, and the assessment made by government assessors shall be
considered. The social and economic benefits contributed by the farmers and the
farmworkers and by the Government to the property as well as the non-payment
of taxes or loans secured from any government financing institution on the said
land shall be considered as additional factors to determine its valuation.
SECTION 18. Valuation and Mode of Compensation. The LBP shall
compensate the landowner in such amounts as may be agreed upon by the
landowner and the DAR and the LBP, in accordance with the criteria provided
for in Sections 16 and 17, and other pertinent provisions hereof, or as may be
finally determined by the court, as the just compensation for the land.
The compensation shall be paid on one of the following modes, at the option of
the landowner:
(1) Cash payment, under the following terms and conditions;
(a) For lands above Twenty-five percent
fifty (50) hectares, insofar (25%) cash, the balance to
as the excess hectarage is be paid in government
concerned. financial instruments
negotiable at any time.
(b) For lands above Thirty percent (30%) cash,
twenty-four (24) hectares the balance to be paid in
and up to fifty (50) hectares. government financial
instruments negotiable
at any time.
(c) For lands twenty-four Thirty-five percent (35%)
(24) hectares and below. cash, the balance to be paid
in government financial
instruments negotiable at
any time.
(2) Shares of stock in government-owned or controlled corporations, LBP
preferred shares, physical assets or other qualified investments in accordance
with guidelines set by the PARC; cdt
(3) Tax credits which can be used against any tax liability;
(4) LBP bonds, which shall have the following features:
(a) Market interest rates aligned with 91-day treasury bill rates. Ten percent
(10%) of the face value of the bonds shall mature every year from the date of
issuance until the tenth (10th) year: Provided, That should the landowner choose
to forego the cash portion, whether in full or in part, he shall be paid
correspondingly in LBP bonds;
(b) Transferability and negotiability. Such LBP bonds may be used by the
landowner, his successors in interest or his assigns, up to the amount of their face
value, for any of the following:
(i) Acquisition of land or other real properties of the government, including
assets under the Asset Privatization Program and other assets foreclosed by
government financial institutions in the same province or region where the lands
for which the bonds were paid are situated;
(ii) Acquisition of shares of stock of government-owned or -controlled
corporations or shares of stocks owned by the government in private
corporations;
(iii) Substitution for surety or bail bonds for the provisional release of accused
persons, or performance bonds;
(iv) Security for loans with any government financial institution, provided the
proceeds of the loans shall be invested in an economic enterprise, preferably in a
small-and medium-scale industry, in the same province or region as the land for
which the bonds are paid;
(v) Payment for various taxes and fees to government; Provided, That the use
of these bonds for these purposes will be limited to a certain percentage of the
outstanding balance of the financial instruments: Provided, further, That the
PARC shall determine the percentage mentioned above;
(vi) Payment for tuition fees of the immediate family of the original
bondholder in government universities, colleges, trade schools, and other
institutions;
(vii) Payment for fees of the immediate family of the original bondholder in
government hospitals; and
(viii) Such other uses as the PARC may from time to time allow.
In case of extraordinary inflation, the PARC shall take appropriate measures to
protect the economy.
SECTION 19. Incentives for Voluntary Offers for Sales. Landowners,
other than banks and other financial institutions, who voluntarily offer their lands
for sale shall be entitled to an additional five percent (5%) cash payment.
SECTION 20. Voluntary Land Transfer. Landowners of agricultural
lands subject to acquisition under this Act may enter into a voluntary
arrangement for direct transfer of their lands to qualified beneficiaries subject to
the following guidelines:
(a) All notices for voluntary land transfer must be submitted to the DAR
within the first year of the implementation of the CARP. Negotiations between
the landowners and qualified beneficiaries covering any voluntary land transfer
which remain unresolved after one (1) year shall not be recognized and such land
shall instead be acquired by the government and transferred pursuant to this Act.
(b) The terms and conditions of such transfer shall not be less favorable to
the transferee than those of the government's standing offer to purchase from the
landowner and to resell to the beneficiaries, if such offers have been made and
are fully known to both parties.
(c) The voluntary agreement shall include sanctions for non-compliance by
either party and shall be duly recorded and its implementation monitored by the
DAR.
SECTION 21. Payment of Compensation by Beneficiaries Under
Voluntary Land Transfer. Direct payments in cash or in kind may be by the
farmer-beneficiary to the landowner under terms to be mutually agreed upon by
both parties, which shall be binding upon them, upon registration with the
approval by the DAR. Said approval shall be considered given, unless notice of
disapproval is received by the farmer-beneficiary within thirty (30) days from the
date of registration.
In the event they cannot agree on the price of land, the procedure for compulsory
acquisition as provided in Section 16 shall apply. The LBP shall extend
financing to the beneficiaries for purposes of acquiring the land.
CHAPTER VII
Land Redistribution
SECTION 22. Qualified Beneficiaries. The lands covered by the CARP
shall be distributed as much as possible to landless residents of the same
barangay, or in the absence thereof, landless residents of the same municipality
in the following order of priority: cdtai
(a) agricultural lessees and share tenants;
(b) regular farmworkers;
(c) seasonal farmworkers;
(d) other farmworkers;
(e) actual tillers or occupants of public lands;
(f) collectives or cooperatives of the above beneficiaries; and
(g) others directly working on the land.
Provided, however, That the children of landowners who are qualified under
Section 6 of this Act shall be given preference in the distribution of the land of
their parents: and Provided, further, That actual tenant-tillers in the landholdings
shall not be ejected or removed therefrom.
Beneficiaries under Presidential Decree No. 27 who have culpably sold, disposed
of, or abandoned their land are disqualified to become beneficiaries under this
Program.
A basic qualification of a beneficiary shall be his willingness, aptitude, and
ability to cultivate and make the land as productive as possible. The DAR shall
adopt a system of monitoring the record or performance of each beneficiary, so
that any beneficiary guilty of negligence or misuse of the land or any support
extended to him shall forfeit his right to continue as such beneficiary. The DAR
shall submit periodic reports on the performance of the beneficiaries to the
PARC.
If, due to the landowner's retention rights or to the number of tenants, lessees, or
workers on the land, there is not enough land to accommodate any or some of
them, they may be granted ownership of other lands available for distribution
under this Act, at the option of the beneficiaries.
Farmers already in place and those not accommodated in the distribution of
privately-owned lands will be given preferential rights in the distribution of lands
from the public domain.
SECTION 23. Distribution Limit. No qualified beneficiary may own
more than three (3) hectares of agricultural land.
SECTION 24. Award to Beneficiaries. The rights and responsibilities of
the beneficiary shall commence from the time the DAR makes an award of the
land to him, which award shall be completed within one hundred eighty (180)
days from the time the DAR takes actual possession of the land. Ownership of
the beneficiary shall be evidenced by a Certificate of Land Ownership Award,
which shall contain the restrictions and conditions provided for in this Act, and
shall be recorded in the Register of Deeds concerned and annotated on the
Certificate of Title.
SECTION 25. Award Ceilings for Beneficiaries. Beneficiaries shall be
awarded an area not exceeding three (3) hectares which may cover a contiguous
tract of land or several parcels of land cumulated up to the prescribed award
limits.
For purposes of this Act, a landless beneficiary is one who owns less than three
(3) hectares of agricultural land.
The beneficiaries may opt for collective ownership, such as co-ownership or
farmers cooperative or some other form of collective organization: Provided,
That the total area that may be awarded shall not exceed the total number of co-
owners or member of the cooperative or collective organization multiplied by the
award limit above prescribed, except in meritorious cases as determined by the
PARC. Title to the property shall be issued in the name of the co-owners or the
cooperative or collective organization as the case may be.
SECTION 26. Payment by Beneficiaries. Lands awarded pursuant to
this Act shall be paid for by the beneficiaries to the LBP in thirty (30) annual
amortizations at six percent (6%) interest per annum. The payments for the first
three (3) years after the award may be at reduced amounts as established by the
PARC: Provided, That the first five (5) annual payments may not be more than
five percent (5%) of the value of the annual gross production as established by
the DAR. Should the scheduled annual payments after the fifth year exceed ten
percent (10%) of the annual gross production and the failure to produce
accordingly is not due to the beneficiary's fault, the LBP may reduce the interest
rate or reduce the principal obligations to make the repayment affordable.
The LBP shall have a lien by way of mortgage on the land awarded to the
beneficiary; and this mortgage may be foreclosed by the LBP for non-payment of
an aggregate of three (3) annual amortizations. The LBP shall advise the DAR of
such proceedings and the latter shall subsequently award the forfeited
landholdings to other qualified beneficiaries. A beneficiary whose land, as
provided herein, has been foreclosed shall thereafter be permanently disqualified
from becoming a beneficiary under this Act. cd
SECTION 27. Transferability of Awarded Lands. Lands acquired by
beneficiaries under this Act may not be sold, transferred or conveyed except
through hereditary succession, or to the government, or the LBP, or to other
qualified beneficiaries for a period of ten (10) years: Provided, however, That the
children or the spouse of the transferor shall have a right to repurchase the land
from the government or LBP within a period of two (2) years. Due notice of the
availability of the land shall be given by the LBP to the Barangay Agrarian
Reform Committee (BARC) of the barangay where the land is situated. The
Provincial Agrarian Reform Coordinating Committee (PARCCOM) as herein
provided, shall, in turn, be given due notice thereof by the BARC.
If the land has not yet been fully paid by the beneficiary, the rights to the land
may be transferred or conveyed, with prior approval of the DAR, to any heir of
the beneficiary or to any other beneficiary who, as a condition for such transfer
or conveyance, shall cultivate the land himself. Failing compliance herewith, the
land shall be transferred to the LBP which shall give due notice of the
availability of the land in the manner specified in the immediately preceding
paragraph.
In the event of such transfer to the LBP, the latter shall compensate the
beneficiary in one lump sum for the amounts the latter has already paid, together
with the value of improvements he has made on the land.
SECTION 28. Standing Crops at the Time of Acquisition. The
landowner shall retain his share of any standing crops unharvested at the time the
DAR shall take possession of the land under Section 16 of the Act, and shall be
given a reasonable time to harvest the same.
CHAPTER VIII
Corporate Farms
SECTION 29. Farms Owned or Operated by Corporations or Other
Business Associations. In the case of farms owned or operated by
corporations or other business associations, the following rules shall be observed
by the PARC:
In general, lands shall be distributed directly to the individual worker-
beneficiaries.
In case it is not economically feasible and sound to divide the land, then it shall
be owned collectively by the workers' cooperative or association which will deal
with the corporation or business association. Until a new agreement is entered
into by and between the workers' cooperative or association and the corporation
or business association, any agreement existing at the time this Act takes effect
between the former and the previous landowner shall be respected by both the
workers' cooperative or association and the corporation or business association.
SECTION 30. Homelots and Farmlots for Members of Cooperatives.
The individual members of the cooperatives or corporations mentioned in the
preceding section shall be provided with homelots and small farmlots for their
family use, to be taken from the land owned by the cooperative or corporation.
SECTION 31. Corporate Landowners. Corporate landowners may
voluntarily transfer ownership over their agricultural landholdings to the
Republic of the Philippines pursuant to Section 20 hereof or to qualified
beneficiaries, under such terms and conditions, consistent with this Act, as they
may agree upon, subject to confirmation by the DAR.
Upon certification by the DAR, corporations owning agricultural lands may give
their qualified beneficiaries the right to purchase such proportion of the capital
stock of the corporation that the agricultural land, actually devoted to agricultural
activities, bears in relation to the company's total assets, under such terms and
conditions as may be agreed upon by them. In no case shall the compensation
received by the workers at the time the shares of stocks are distributed be
reduced. The same principle shall be applied to associations, with respect to their
equity or participation.
Corporations or associations which voluntarily divest a proportion of their capital
stock, equity or participation in favor of their workers or other qualified
beneficiaries under this section shall be deemed to have complied with the
provisions of the Act:Provided, That the following conditions are complied with:
a) In order to safeguard the right of beneficiaries who own shares of stocks
to dividends and other financial benefits, the books of the corporation or
association shall be subject to periodic audit by certified public accountants
chosen by the beneficiaries;
b) Irrespective of the value of their equity in the corporation or association,
the beneficiaries shall be assured of at least one (1) representative in the board of
directors, or in a management or executive committee, if one exists, of the
corporation or association; and
c) Any shares acquired by such workers and beneficiaries shall have the
same rights and features as all other shares.
d) Any transfer of shares of stocks by the original beneficiaries shall be
void ab initio unless said transaction is in favor of a qualified and registered
beneficiary within the same corporation.
If within two (2) years from the approval of this Act, the land or stock transfer
envisioned above is not made or realized or the plan for such stock distribution
approved by the PARC within the same period, the agricultural land of the
corporate owners or corporation shall be subject to the compulsory coverage of
this Act. acd
SECTION 32. Production-Sharing. Pending final land transfer,
individuals or entities owning, or operating under lease or management contract,
agricultural lands are hereby mandated to execute a production-sharing plan with
their farm workers or farmworkers' reorganization, if any, whereby three percent
(3%) of the gross sales from the production of such lands are distributed within
sixty (60) days of the end of the fiscal year as compensation to regular and other
farmworkers in such lands over and above the compensation they currently
receive: Provided, That these individuals or entities realize gross sales in excess
of five million pesos per annum unless the DAR, upon proper application,
determines a lower ceiling.
In the event that the individual or entity realizes a profit, an additional ten
percent (10%) of the net profit after tax shall be distributed to said regular and
other farmworkers within ninety (90) days of the end of the fiscal year.
To forestall any disruption in the normal operation of lands to be turned over to
the farmworker-beneficiaries mentioned above, a transitory period, the length of
which shall be determined by the DAR, shall be established.
During this transitory period, at least one percent (1%) of the gross sales of the
entity shall be distributed to the managerial, supervisory and technical group in
place at the time of the effectivity of this Act, as compensation for such
transitory managerial and technical functions as it will perform, pursuant to an
agreement that the farmworker-beneficiaries and the managerial, supervisory and
technical group may conclude, subject to the approval of the DAR.
SECTION 33. Payment of Shares of Cooperative or Association. Shares
of a cooperative or association acquired by farmers-beneficiaries or workers-
beneficiaries shall be fully paid for in an amount corresponding to the valuation
as determined in the immediately succeeding section. The landowner and the
LBP shall assist the farmers-beneficiaries and workers-beneficiaries in the
payment for said shares by providing credit financing.
SECTION 34. Valuation of Lands. A valuation scheme for the land
shall be formulated by the PARC, taking into account the factors enumerated in
Section 17, in addition to the need to stimulate the growth of cooperatives and
the objective of fostering responsible participation of the workers-beneficiaries
in the creation of wealth.
In the determination of price that is just not only to the individuals but to society
as well, the PARC shall consult closely with the landowner and the workers-
beneficiaries.
In case of disagreement, the price as determined by the PARC, if accepted by the
workers-beneficiaries, shall be followed, without prejudice to the landowner's
right to petition the Special Agrarian Court to resolve the issue of valuation.
CHAPTER IX
Support Services
SECTION 35. Creation of Support Services Office. There is hereby
created the Office of Support Services under the DAR to be headed by an
Undersecretary.
The Office shall provide general support and coordinative services in the
implementation of the program particularly in carrying out the provisions of the
following services to farmer-beneficiaries and affected landowners:
1) Irrigation facilities, especially second crop or dry season irrigation
facilities;
2) Infrastructure development and public works projects in areas and
settlements that come under agrarian reform, and for this purpose, the
preparation of the physical development plan of such settlements providing
suitable barangay sites, potable water and power resources, irrigation systems
and other facilities for a sound agricultural development plan;
3) Government subsidies for the use of irrigation facilities;
4) Price support and guarantee for all agricultural produce;
5) Extending to small landowners, farmers' organizations the necessary
credit, like concessional and collateral-free loans, for agro-industrialization based
on social collaterals like the guarantees of farmers' organization:
6) Promoting, developing and extending financial assistance to small-and
medium-scale industries in agrarian reform areas;
7) Assigning sufficient numbers of agricultural extension workers to farmers'
organizations;
8) Undertake research, development and dissemination of information on
agrarian reform and low-cost and ecologically sound farm inputs and
technologies to minimize reliance on expensive and imported agricultural inputs;
9) Development of cooperative management skills through intensive
training;
10) Assistance in the identification of ready markets for agricultural produce
and training in other various prospects of marketing; and cdtai
11) Administration operation management and funding of support services,
programs and projects including pilot projects and models related to agrarian
reform as developed by the DAR.
SECTION 36. Funding for Support Services. In order to cover the
expenses and cost of support services, at least twenty-five percent (25%) of all
appropriations for agrarian reform shall be immediately set aside and made
available for this purpose. In addition, the DAR shall be authorized to package
proposals and receive grants, aid and other forms of financial assistance from
any source.
SECTION 37. Support Services to the Beneficiaries. The PARC shall
ensure that support services to farmers-beneficiaries are provided, such as:
(a) Land surveys and titling;
(b) Liberalized terms on credit facilities and production loans;
(c) Extension services by way of planting, cropping, production and post-
harvest technology transfer, as well as marketing and management assistance and
support to cooperatives and farmers' organizations;
(d) Infrastructure such as access trails, mini-dams, public utilities, marketing
and storage facilities; and
(e) Research, production and use of organic fertilizers and other local
substances necessary in farming and cultivation.
The PARC shall formulate policies to ensure that support services to farmer-
beneficiaries shall be provided at all stages of land reform.
The Bagong Kilusang Kabuhayan sa Kaunlaran (BKKK) Secretariat shall be
transferred and attached to the LBP, for its supervision including all its
applicable and existing funds, personnel, properties, equipment and records.
Misuse or diversion of the financial and support services herein provided shall
result in sanctions against the beneficiary guilty thereof, including the forfeiture
of the land transferred to him or lesser sanctions as may be provided by the
PARC, without prejudice to criminal prosecution.
SECTION 38. Support Services to Landowners. The PARC with the
assistance of such other government agencies and instrumentalities as it may
direct, shall provide landowners affected by the CARP and prior agrarian reform
programs with the following services:
(a) Investment information financial and counseling assistance;
(b) Facilities, programs and schemes for the conversion or exchange of bonds
issued for payment of the lands acquired with stocks and bonds issued by the
National Government, the Central Bank and other government institutions and
instrumentalities;
(c) Marketing of LBP bonds, as well as promoting the marketability of said
bonds in traditional and non-traditional financial markets and stock exchanges;
and
(d) Other services designed to utilize productively the proceeds of the sale of
such lands for rural industrialization.
A landowner who invests in rural-based industries shall be entitled to the
incentives granted to a registered enterprise engaged in a pioneer or preferred
area of investment as provided for in the Omnibus Investment Code of 1987, or
to such other incentives as the PARC, the LBP, or other government financial
institutions may provide.
The LBP shall redeem a landowner's LBP bonds at face value, provided that the
proceeds thereof shall be invested in a BOI-registered company or in any agri-
business or agro-industrial enterprise in the region where the landowner has
previously made investments, to the extent of thirty percent (30%) of the face
value of said LBP bonds, subject to guidelines that shall be issued by the LBP.
SECTION 39. Land Consolidation. The DAR shall carry out land
consolidation projects to promote equal distribution of landholdings, to provide
the needed infrastructures in agriculture, and to conserve soil fertility and prevent
erosion.
CHAPTER X
Special Areas of Concern
SECTION 40. Special Areas of Concern. As an integral part of the
Comprehensive Agrarian Reform Program, the following principles in these
special areas of concern shall be observed:
(1) Subsistence Fishing. Small fisherfolk, including seaweed farmers,
shall be assured of greater access to the utilization of water resources.
(2) Logging and Mining Concessions. Subject to the requirement of a
balanced ecology and conservation of water resources, suitable areas, as
determined by the Department of Environment and Natural Resources (DENR),
in logging, mining and pasture areas, shall be opened up for agrarian settlements
whose beneficiaries shall be required to undertake reforestation and conservation
production methods. Subject to existing laws, rules and regulations, settlers and
members of tribal communities shall be allowed to enjoy and exploit the
products of the forest other than timer within the logging concessions.
(3) Sparsely Occupied Public Agricultural Lands. Sparsely occupied
agricultural lands of the public domain shall be surveyed, proclaimed and
developed as farm settlements for qualified landless people based on an
organized program to ensure their orderly and early development. cda
Agricultural land allocations shall be made for ideal family-size farms as
determined by the PARC. Pioneers and other settlers shall be treated equally in
every respect.
Subject to the prior rights of qualified beneficiaries, uncultivated lands of the
public domain shall be made available on a lease basis to interested and qualified
parties. Parties who will engaged in the development of capital-intensive,
traditional or pioneering crops shall be given priority.
The lease period, which shall not be more than a total of fifty (50) years, shall be
proportionate to the amount of investment and production goals of the lessee. A
system of evaluation and audit shall be instituted.
(4) Idle, Abandoned, Foreclosed and Sequestered Lands. Idle, abandoned,
foreclosed and sequestered lands shall be planned for distribution as home lots
and family-size farmlots to actual occupants. If land area permits, other landless
families shall be accommodated in these lands.
(5) Rural Women. All qualified women members of the agricultural labor
force must be guaranteed and assured equal right to ownership of the land, equal
shares of the farm's produce, and representation in advisory or appropriate
decision-making bodies.
(6) Veterans and Retirees. In accordance with Section 7 of Article XVI of
the Constitution, landless war veterans and veterans of military campaigns, their
surviving spouse and orphans, retirees of the Armed Forces of the Philippines
(AFP) and the Integrated National Police (INP), returnees, surrenderees, and
similar beneficiaries shall be given due consideration in the disposition of
agricultural lands of the public domain.
(7) Agriculture Graduates. Graduates of agricultural schools who are
landless shall be assisted by the government, through the DAR, in their desire to
own and till agricultural lands.
CHAPTER XI
Program Implementation
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 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.
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.
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.
CHAPTER XII
Administrative Adjudication
SECTION 50. Quasi-Judicial Powers of the DAR. The DAR is hereby
vested with the primary jurisdiction to determine and adjudicate agrarian reform
matters and shall have exclusive original jurisdiction over all matters involving
the implementation of agrarian reform except those falling under the exclusive
jurisdiction of the Department of Agriculture (DA) and the Department of
Environment and Natural Resources (DENR).
It shall not be bound by technical rules of procedure and evidence but shall
proceed to hear and decide all cases, disputes or controversies in a most
expeditious manner, employing all reasonable means to ascertain the facts of
every case in accordance with justice and equity and the merits of the case.
Toward this end, it shall adopt a uniform rule of procedure to achieve a just,
expeditious and inexpensive determination for every action or proceeding before
it.
It shall have the power to summon witnesses, administer oaths, take testimony,
require submission of reports, compel the production of books and documents
and answers to interrogatories and issue subpoena, and subpoena duces tecum,
and enforce its writs through sheriffs or other duly deputized officers. It shall
likewise have the power to punish direct and indirect contempts in the same
manner and subject to the same penalties as provided in the Rules of Court.
Responsible farmer leaders shall be allowed to represent themselves, their fellow
farmers, or their organizations in any proceedings before the DAR: Provided,
however, That when there are two or more representatives for any individual or
group, the representatives should choose only one among themselves to represent
such party or group before any DAR proceedings.
Notwithstanding an appeal to the Court of Appeals, the decision of the DAR
shall be immediately executory.
SECTION 51. Finality of Determination. Any case or controversy
before it shall be decided within thirty (30) days after it is submitted for
resolution. Only one (1) motion for reconsideration shall be allowed. Any order,
ruling or decision shall be final after the lapse of fifteen (15) days from receipt of
a copy thereof.
SECTION 52. Frivolous Appeals. To discourage frivolous or dilatory
appeals from the decisions or orders on the local or provincial levels, the DAR
may impose reasonable penalties, including but not limited to fines or censures
upon erring parties.
SECTION 53. Certification of the BARC. The DAR shall not take
cognizance of any agrarian dispute or controversy unless a certification from the
BARC that the dispute has been submitted to it for mediation and conciliation
without any success of settlement is presented: Provided, however, That if no
certification is issued by the BARC within thirty (30) days after a matter or issue
is submitted to it for mediation or conciliation the case or dispute may be brought
before the PARC. aisa dc
CHAPTER XIII
Judicial Review
SECTION 54. Certiorari. Any decision, order, award or ruling of the
DAR on any agrarian dispute or on any matter pertaining to the application,
implementation, enforcement, or interpretation of this Act and other pertinent
laws on agrarian reform may be brought to the Court of Appeals by certiorari
except as otherwise provided in this Act within fifteen (15) days from the receipt
of a copy thereof.
The findings of fact of the DAR shall be final and conclusive if based on
substantial evidence.
SECTION 55. No Restraining Order or Preliminary Injunction. No court
in the Philippines shall have jurisdiction to issue any restraining order or writ of
preliminary injunction against the PARC or any of its duly authorized or
designated agencies in any case, dispute or controversy arising from, necessary
to, or in connection with the application, implementation, enforcement, or
interpretation of this Act and other pertinent laws on agrarian reform.
SECTION 56. Special Agrarian Court. The Supreme Court shall
designate at least one (1) branch of the Regional Trial Court (RTC) within each
province to act as a Special Agrarian Court.
The Supreme Court may designate more branches to constitute such additional
Special Agrarian Courts as may be necessary to cope with the number of
agrarian cases in each province. In the designation, the Supreme Court shall give
preference to the Regional Trial Courts which have been assigned to handle
agrarian cases or whose presiding judges were former judges of the defunct
Court of Agrarian Relations.
The Regional Trial Court (RTC) judges assigned to said courts shall exercise
said special jurisdiction in addition to the regular jurisdiction of their respective
courts.
The Special Agrarian Courts shall have the powers and prerogatives inherent in
or belonging to the Regional Trial Courts.
SECTION 57. Special Jurisdiction. The Special Agrarian Courts shall
have original and exclusive jurisdiction over all petitions for the determination of
just compensation to landowners, and the prosecution of all criminal offenses
under this Act. The Rules of Court shall apply to all proceedings before the
Special Agrarian Courts, unless modified by this Act.
The Special Agrarian Courts shall decide all appropriate cases under their special
jurisdiction within thirty (30) days from submission of the case for decision.
SECTION 58. Appointment of Commissioners. The Special Agrarian
Courts, upon their own initiative or at the instance of any of the parties, may
appoint one or more commissioners to examine, investigate and ascertain facts
relevant to the dispute including the valuation of properties, and to file a written
report thereof with the court.
SECTION 59. Orders of the Special Agrarian Courts. No order of the
Special Agrarian Courts on any issue, question, matter or incident raised before
them shall be elevated to the appellate courts until the hearing shall have been
terminated and the case decided on the merits.
SECTION 60. Appeals. An appeal may be taken from the decision of
the Special Agrarian Courts by filing a petition for review with the Court of
Appeals within fifteen (15) days receipt of notice of the decision; otherwise, the
decision shall become final.
An appeal from the decision of the Court of Appeals, or from any order, ruling or
decision of the DAR, as the case may be, shall be by a petition for review with
the Supreme Court within a non-extendible period of fifteen (15) days from
receipt of a copy of said decision.
SECTION 61. Procedure on Review. Review by the Court of Appeals or
the Supreme Court, as the case may be, shall be governed by the Rules of Court.
The Court of Appeals, however, may require the parties to file simultaneous
memoranda within a period of fifteen (15) days from notice, after which the case
is deemed submitted for decision.
SECTION 62. Preferential Attention in Courts. All courts in the
Philippines, both trial and appellate, shall give preferential attention to all cases
arising from or in connection with the implementation of the provisions of this
Act.
All cases pending in court arising from or in connection with the implementation
of this Act shall continue to be heard, tried and decided into their finality,
notwithstanding the expiration of the ten-year period mentioned in Section 5
hereof.
CHAPTER XIV
Financing
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 declaration to the transferee of the property with respect to unregistered lands, as
support services required by this Act; cdt the case may be, shall be conclusive for the purpose of this Act.
(e) Other government funds not otherwise appropriated. (f) The sale, transfer or conveyance by a beneficiary of the right to use or
All funds appropriated to implement the provisions of this Act shall be any other usufructuary right over the land he acquired by virtue of being a
considered continuing appropriations during the period of its implementation. beneficiary, in order to circumvent the provisions of this Act.
SECTION 64. Financial Intermediary for the CARP. The Land Bank of SECTION 74. Penalties. Any person who knowingly or willfully
the Philippines shall be the financial intermediary for the CARP, and shall insure violates the provisions of this Act shall be punished by imprisonment of not less
that the social justice objectives of the CARP shall enjoy a preference among its than one (1) month to not more than three (3) years or a fine of not less than one
priorities. thousand pesos (P1,000.00) and not more than fifteen thousand pesos
CHAPTER XV (P15,000.00), or both, at the discretion of the court.
General Provisions If the offender is a corporation or association, the officer responsible therefor
SECTION 65. Conversion of Lands. After the lapse of five (5) years shall be criminally liable.
from its award, when the land ceases to be economically feasible and sound for SECTION 75. Suppletory Application of Existing Legislation. The
agricultural purposes, or the locality has become urbanized and the land will provisions of Republic Act No. 3844 as amended, Presidential Decree Nos. 27
have a greater economic value for residential, commercial or industrial purposes, and 266 as amended, Executive Order Nos. 228 and 229, both Series of 1987;
the DAR, upon application of the beneficiary or the landowner, with due notice and other laws not inconsistent with this Act shall have suppletory effect.
to the affected parties, and subject to existing laws, may authorize the SECTION 76. Repealing Clause. Section 35 of Republic Act No. 3834,
reclassification or conversion of the land and its disposition: Provided, That the Presidential Decree No. 316, the last two paragraphs of Section 12 of
beneficiary shall have fully paid his obligation. Presidential Decree No. 946, Presidential Decree No. 1038, and all other laws,
SECTION 66. Exemptions from Taxes and Fees of Land Transfers. decrees executive orders, rules and regulations, issuances or parts thereof
Transactions under this Act involving a transfer of ownership, whether from inconsistent with this Act are hereby repealed or amended accordingly. cdt
natural or juridical persons, shall be exempted from taxes arising from capital SECTION 77. Separability Clause. If, for any reason, any section or
gains. These transactions shall also be exempted from the payment of registration provision of this Act is declared null and void, no other section, provision, or
fees, and all other taxes and fees for the conveyance or transfer part thereof shall be affected and the same shall remain in full force and effect.
thereof; Provided, That all arrearages in real property taxes, without penalty or SECTION 78. Effectivity Clause. This Act shall take effect immediately
interest, shall be deductible from the compensation to which the owner may be after publication in at least two (2) national newspapers of general circulation.
entitled. Approved: June 10, 1988
SECTION 67. Free Registration of Patents and Titles. All Registers of
Deeds are hereby directed to register, free from payment of all fees and other
charges, patents, titles and documents required for the implementation of the
CARP.
SECTION 68. Immunity of Government Agencies from Undue
Interference. No injunction, restraining order, prohibition or mandamus shall
be issued by the lower courts against the Department of Agrarian Reform REPUBLIC ACT NO. 6657, as amended by RA 7881, 7905, 8532 and 9700
(DAR), the Department of Agriculture (DA), the Department of Environment REPUBLIC ACT NO. 6657
and Natural Resources (DENR), and the Department of Justice (DOJ) in their (As amended by RA 7881, 7905, 8532 and 9700)
implementation of the program. by Hon. Virgilio R. de los Reyes, Secretary of the Department of Agrarian
SECTION 69. Assistance of Other Government Entities. The PARC, in Reform and Atty. Christine M. Pul-oc, Chief Legal Officer, CAR.
the exercise of its functions, is hereby authorized to call upon the assistance and
support of other government agencies, bureaus and offices, including AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN REFORM
government-owned or -controlled corporations. PROGRAM TO PROMOTE SOCIAL JUSTICE AND INDUSTRIALIZATION,
SECTION 70. Disposition of Private Agricultural Lands. The sale or PROVIDING THE MECHANISM FOR ITS IMPLEMENTATION, AND FOR
disposition of agricultural lands retained by a landowner as a consequence of OTHER PURPOSES
Section 6 hereof shall be valid as long as the total landholdings that shall be Be it enacted by the Senate and House of Representatives of the Philippines in
owned by the transferee thereof inclusive of the land to be acquired shall not Congress assembled:
exceed the landholding ceilings provided for in this Act. CHAPTER I
Any sale or disposition of agricultural lands after the effectivity of this Act found Preliminary Chapter
to be contrary to the provisions hereof shall be null and void. SECTION 1. Title. This Act shall be known as the Comprehensive Agrarian
Transferees of agricultural lands shall furnish the appropriate Register of Deeds Reform Law of 1988.
and the BARC an affidavit attesting that his total landholdings as a result of the SECTION 2. Declaration of Principles and Policies.
said acquisition do not exceed the landholding ceiling. The Register of Deeds It is the policy of the State to It is the policy of the State to pursue a
shall not register the transfer of any agricultural land without the submission of pursue a Comprehensive Comprehensive Agrarian Reform Program
this sworn statement together with proof of service of a copy thereof to the Agrarian Reform Program (CARP). The welfare of the landless
BARC. (CARP). The welfare of the farmers and farmworkers will receive the
SECTION 71. Bank Mortgages. Banks and other financial institutions landless farmers and highest consideration to promote social
allowed by law to hold mortgage rights or security interests in agricultural lands farmworkers will receive the justice and to move the nation toward sound
to secure loans and other obligations of borrowers, may acquire title to these highest consideration to rural development and industrialization, and
mortgaged properties, regardless of area, subject to existing laws on compulsory promote social justice and to the establishment of owner cultivatorship of
transfer of foreclosed assets and acquisition as prescribed under Section 13 of move the nation toward sound economic-size farms as the basis of
this Act. acd rural development and Philippine agriculture.
SECTION 72. Lease, Management, Grower or Service Contracts, industrialization, and the The State shall promote industrialization
Mortgages and Other Claims. Lands covered by this Act under lease, establishment of owner and full employment based on sound
management, grower or service contracts, and the like shall be disposed of as cultivatorship of economic-size agricultural development and agrarian
follows: farms as the basis of Philippine reform, through industries that make full
(a) Lease, management, grower or service contracts covering private lands agriculture. and efficient use of human and natural
may continue under their original terms and conditions until the expiration of the To this end, a more equitable resources, and which are competitive in
same even if such land has, in the meantime, been transferred to qualified distribution and ownership of both domestic and foreign
beneficiaries. land, with due regard to the markets: Provided, That the conversion of
(b) Mortgages and other claims registered with the Register of Deeds shall be rights of landowners to just agricultural lands into industrial,
assumed by the government up to an amount equivalent to the landowner's compensation and to the commercial or residential lands shall take
compensation value as provided in this Act. ecological needs of the nation, into account, tillers' rights and national food
SECTION 73. Prohibited Acts and Omissions. The following are shall be undertaken to provide security.Further, the State shall protect
prohibited: farmers and farmworkers with Filipino enterprises against unfair foreign
(a) The ownership or possession, for the purpose of circumventing the the opportunity to enhance their competition and trade practices.
provisions of this Act, of agricultural lands in excess of the total retention limits dignity and improve the quality
or award ceilings by any person, natural or juridical, except those under of their lives through greater The State recognizes that there is not
collective ownership by farmer-beneficiaries. productivity of agricultural enough agricultural land to be divided and
(b) The forcible entry or illegal detainer by persons who are not qualified lands. distributed to each farmer and regular
beneficiaries under this Act to avail themselves of the rights and benefits of the farmworker so that each one can own
Agrarian Reform Program. his/her economic-size family farm. This
(c) The conversion by any landowner of his agricultural land into any non- being the case, a meaningful agrarian
agricultural use with intent to avoid the application of this Act to his The agrarian reform program is reform program to uplift the lives and
landholdings and to dispossess his tenant farmers of the land tilled by them. founded on the right of farmers economic status of the farmer and his/her
(d) The willful prevention or obstruction by any person, association or entity and regular farmworkers, who children can only be achieved through
of the implementation of the CARP. are landless, to own directly or simultaneous industrialization aimed at
(e) The sale, transfer, conveyance or change of the nature of lands outside of collectively the lands they till developing a self-reliant and independent
urban centers and city limits either in whole or in part after the effectivity of this or, in the case of other farm national economy effectively controlled by
Act. The date of the registration of the deed of conveyance in the Register of workers, to receive a just share Filipinos.
Deeds with respect to titled lands and the date of the issuance of the tax of the fruits thereof. To this
end, the State shall encourage
and undertake the just
distribution of all agricultural
lands, subject to the priorities
and retention limits set forth in
this Act, having taken into
account ecological,
developmental, and equity
considerations, and subject to
the payment of just
compensation. The State shall
respect the right of small
landowners, and shall provide
incentives for voluntary land-
sharing.
The State shall recognize the
right of farmers, farmworkers
and landowners, as well as
cooperatives and other
independent farmers'
organizations, to participate in
the planning, organization, and
management of the program,
and shall provide support to
agriculture through appropriate
technology and research, and
adequate financial production,
marketing and other support
services.
The State shall apply the
principles of agrarian reform,
or stewardship, whenever
applicable, in accordance with
law, in the disposition or
utilization of other natural
resources, including lands of
the public domain, under lease
or concession, suitable to
agriculture, subject to prior
rights, homestead rights of
small settlers and the rights of
indigenous communities to
their ancestral lands.
The State may resettle landless
farmers and farmworkers in its
own agricultural estates, which
shall be distributed to them in
the manner provided by law.
By means of appropriate
incentives, the State shall
encourage the formation and
maintenance of economic-size
family farms to be constituted
by individual beneficiaries and
small landowners.
The State shall protect the
rights of subsistence fishermen,
especially of local
communities, to the preferential
use of communal marine and
fishing resources, both inland
and offshore. It shall provide
support to such fishermen
through appropriate technology
and research, adequate
financial, production and
marketing assistance and other
services. The State shall also
protect, develop and conserve
such resources. The protection
shall extend to offshore fishing
grounds of subsistence
fishermen against foreign
intrusion. Fishworkers shall
receive a just share from their
labor in the utilization of
marine and fishing resources.
The State shall be guided by
the principles that land has a
social function and land
ownership has a social
responsibility. Owners of
agricultural lands have the
obligation to cultivate directly
or through labor administration
the lands they own and thereby
To this end, the State may, in the interest of
national welfare or defense, establish and
operate vital industries.
A more equitable distribution and
ownership of land, with due regard to the
rights of landowners to just compensation,
retention rights under Section 6 of Republic
Act No. 6657, as amended, and to the
ecological needs of the nation, shall be
undertaken to provide farmers and
farmworkers with the opportunity to
enhance their dignity and improve the
quality of their lives through greater
productivity of agricultural lands.
The agrarian reform program is founded on
the right of farmers and regular
farmworkers, who are landless, to own
directly or collectively the lands they till or,
in the case of other farmworkers, to receive
a just share of the fruits thereof. To this end,
the State shallencourage and undertake the
just distribution of all agricultural lands,
subject to the priorities and retention limits
set forth in this Act, taking into account
ecological, developmental, and equity
considerations, and subject to the payment
of just compensation. The State shall
respect the right of small landowners, and
shall provide incentive for voluntary land-
sharing.
As much as practicable, the implementation
of the program shall be community-based to
assure, among others, that the farmers shall
have greater control of farmgate prices, and
easier access to credit.
The State shall recognize the right of
farmers, farmworkers and landowners, as
well as cooperatives and other independent
farmers organizations, to participate in the
planning, organization, and management of
the program, and shall provide support to
agriculture through appropriate technology
and research, and adequate financial,
production, marketing and other support
services.
The State shall recognize and enforce,
consistent with existing laws, the rights of
rural women to own and control land,
taking into consideration the substantive
equality between men and women as
qualified beneficiaries, to receive a just
share of the fruits thereof, and to be
represented in advisory or appropriate
decision-making bodies. These rights shall
be independent of their male relatives and
of their civil status.
The State shall apply the principles of
agrarian reform, or stewardship, whenever
applicable, in accordance with law, in the
disposition or utilization of other natural
resources, including lands of the public
domain, under lease or concession, suitable
to agriculture, subject to prior rights,
homestead rights of small settlers and the
rights of indigenous communities to their
ancestral lands.
The State may resettle landless farmers and
farm workers in its own agricultural estates,
which shall be distributed to them in the
manner provided by law.
By means of appropriate incentives, the
State shall encourage the formation and
maintenance of economic-size family farms
to be constituted by individual beneficiaries
and small landowners.
The State shall protect the rights of
subsistence fishermen, especially of local
communities, to the preferential use of
communal marine and fishing resources,
both inland and offshore. It shall provide
support to such fishermen through
appropriate technology and research,
make the land productive. adequate financial, production and
marketing assistance and other services.
The State shall provide The State shall also protect, develop and
incentives to landowners to conserve such resources. The protection
invest the proceeds of the shall extend to offshore fishing grounds of
agrarian reform program to subsistence fishermen against foreign
promote industrialization, intrusion. Fishworkers shall receive a just
employment and privatization share from their labor in the utilization of
of public sector enterprises. marine and fishing resources.
Financial instruments used as The State shall be guided by the principles
payment for lands shall contain that land has a social function and land
features that shall enhance ownership has a social responsibility.
negotiability and acceptability Owners of agricultural land have the
in the marketplace. obligation to cultivate directly or through
labor administration the lands they own and
The State may lease thereby make the land productive.
undeveloped lands of the public The State shall provide incentives to
domain to qualified entities for landowners to invest the proceeds of the
the development of capital- agrarian reform program to promote
intensive farms, and traditional industrialization, employment and
and pioneering crops especially privatization of public sector enterprises.
those for exports subject to the Financial instruments used as payment for
prior rights of the beneficiaries lands shall contain features that shall
under this Act. enhance negotiability and acceptability in
the marketplace.
The State may lease undeveloped lands of
the public domain to qualified entities for
the development of capital-intensive farms,
and traditional and pioneering crops
especially those for exports subject to the
prior rights of the beneficiaries under this
Act. (as amended by Section 1, RA 9700)
SECTION 3. Definitions. For the purpose of this Act, unless the context
indicates otherwise:
(a) Agrarian Reform means redistribution of lands, regardless of crops or fruits
produced, to farmers and regular farmworkers who are landless, irrespective of
tenurial arrangement, to include the totality of factors and support services
designed to lift the economic status of the beneficiaries and all other
arrangements alternative to the physical redistribution of lands, such as
production or profit-sharing, labor administration, and the distribution of shares
of stocks, which will allow beneficiaries to receive a just share of the fruits of the
lands they work.
(b) Agriculture, Agricultural Enterprise or (b) Agriculture,
Agricultural Activity means the cultivation Agricultural
of the soil, planting of crops, growing of Enterprise or
fruit trees, raising of livestock, poulty or Agricultural
fish, including the harvesting of such farm Activity means the
products, and other farm activities and cultivation of the
practices performed by a farmer in soil, planting of
conjunction with such farming operations crops, growing of
done by person whether natural or juridical. fruit
trees, [REMOVES
THE PHRASE:
raising of
livestock, poulty
or fish]including
the harvesting of
such farm
products, and
other farm
activities and
practices
performed by a
farmer in
conjunction with
such farming
operations done by
persons whether
natural or
juridical. (as
amended
by Section 1, RA
7881)
(c) Agricultural Land refers to land devoted to agricultural activity as defined in
this Act and not classified as mineral, forest, residential, commercial or industrial
land.
(d) Agrarian Dispute refers to any controversy relating to tenurial arrangements,
whether leasehold, tenancy, stewardship or otherwise, over lands devoted to
agriculture, including disputes concerning farmworkers' associations or
representation of persons in negotiating, fixing, maintaining, changing, or
seeking to arrange terms or conditions of such tenurial arrangements.
It includes any controversy relating to compensation of lands acquired under this
Act and other terms and conditions of transfer of ownership from landowners to
farmworkers, tenants and other agrarian reform beneficiaries, whether the
disputants stand in the proximate relation of farm operator and beneficiary,
landowner and tenant, or lessor and lessee.
(e) Idle or Abandoned Land refers to any agricultural land not cultivated, tilled or
developed to produce any crop nor devoted to any specific economic purpose
continuously for a period of three (3) years immediately prior to the receipt of
notice of acquisition by the government as provided under this Act, but does not (a) All alienable and
include land that has become permanently or regularly devoted to non- disposable lands of the
agricultural purposes. It does not include land which has become unproductive public domain devoted
by reason of force majeure or any other fortuitous event: Provided, that prior to to or suitable for
such event, such land was previously used for agricultural or other economic agriculture. No
purpose. reclassification of forest
or mineral lands to
agricultural lands shall
(f) Farmer refers to a natural person (f) Farmer refers to a be undertaken after the
whose primary livelihood is natural person whose approval of this Act
cultivation of land or the production primary livelihood is until Congress, taking
of agricultural crops, either by cultivation of land or into account ecological,
himself, or primarily with the the production of developmental and
assistance of his immediate farm agricultural equity considerations,
household, whether the land is crops livestock shall have determined
owned by him, or by another person and/or fisheries either by law, the specific
under a leasehold or share tenancy by himself/herself, or limits of the public
agreement or arrangement with the primarily with the domain;
owner thereof. assistance of his/her (b) All lands of the public domain in (b) All lands of the
immediate farm excess of the specific limits as public domain in excess
household, whether determined by Congress in the of the specific limits as
the land is owned by preceding paragraph; determined by Congress
him/her, or by in the preceding
another person under paragraph;
a leasehold or share
tenancy agreement or
(c) All other lands owned by the (c) All other lands
arrangement with the
Government devoted to or suitable for owned by the
owner thereof (as
agriculture; and Government devoted to
amended by Section
or suitable for
2, RA 9700)
agriculture; and
(d) All private lands devoted to or (d) All private lands
(g) Farmworker is a natural person who renders service for value as an
suitable for agriculture regardless of the devoted to or suitable
employee or laborer in an agricultural enterprise or farm regardless of whether
agricultural products raised or that can for agriculture
his compensation is paid on a daily, weekly, monthly or "pakyaw" basis. The
be raised thereon. regardless of the
term includes an individual whose work has ceased as a consequence of, or in
agricultural products
connection with, a pending agrarian dispute and who has not obtained a
raised or that can be
substantially equivalent and regular farm employment.
raised thereon.
(h) Regular Farmworker is a natural person who is employed on a permanent
basis by an agricultural enterprise or farm.
(i) Seasonal Farmworker is a natural person who is employed on a recurrent, A comprehensive
periodic or intermittent basis by an agricultural enterprise or farm, whether as a inventory system in
permanent or a non-permanent laborer, such as "dumaan", "sacada", and the like. consonance with the
(j) Other Farmworker is a farmworker who does not fall under paragraphs (g), national land use plan
(h) and (i). shall be instituted by the
(k) Cooperatives shall refer to organizations composed primarily of small Department of Agrarian
agricultural producers, farmers, farmworkers, or other agrarian reform Reform (DAR), in
beneficiaries who voluntarily organize themselves for the purpose of pooling accordance with the
land, human, technological, financial or other economic resources, and operated Local Government
on the principle of one member, one vote. A juridical person may be a member Code, for the purpose of
of a cooperative, with the same rights and duties as a natural person. properly identifying
and classifying
farmlands within one
(l) Rural women refer to women who are
(1) year from effectivity
engaged directly or indirectly in farming
of this Act, without
and/or fishing as their source of livelihood,
prejudice to the
whether paid or unpaid, regular or
implementation of the
seasonal, or in food preparation, managing
land acquisition and
the household, caring for the children, and
distribution. (as
other similar activities. (as added
amended bySection 3,
by Section 2, RA 9700)
RA 9700)
SECTION 5. Schedule of Implementation. The distribution of all lands
covered by this Act shall be implemented immediately and completed within ten
CHAPTER II
(10) years from the effectivity thereof.
Coverage
SECTION 6. Retention Limits. Except as otherwise provided in this Act, no
SECTION 4. Scope.
person may own or retain, directly or indirectly, any public or private agricultural
The Comprehensive Agrarian Reform The Comprehensive land, the size of which shall vary according to factors governing a viable family-
Law of 1988 shall cover, regardless of Agrarian Reform Law size farm, such as commodity produced, terrain, infrastructure, and soil fertility
tenurial arrangement and commodity of 1988 shall cover, as determined by the Presidential Agrarian Reform Council (PARC) created
produced, all public and private regardless of tenurial hereunder, but in no case shall retention by the landowner exceed five (5)
agricultural lands, as provided in arrangement and hectares. Three (3) hectares may be awarded to each child of the landowner,
Proclamation No. 131 and Executive commodity produced, subject to the following qualifications: (1) that he is at least fifteen (15) years of
Order No. 229, including other lands of all public and private age; and (2) that he is actually tilling the land or directly managing the farm:
the public domain suitable for agricultural lands as provided, that landowners whose lands have been covered by Presidential Decree
agriculture. provided in No. 27 shall be allowed to keep the areas originally retained by them thereunder:
Proclamation No. 131 provided, further, that original homestead grantees or their direct compulsory
and Executive Order heirs who still own the original homestead at the time of the approval of this Act
More specifically the following lands No. 229, including other shall retain the same areas as long as they continue to cultivate said homestead.
are covered by the Comprehensive lands of the public The right to choose the area to be retained, which shall be compact or
Agrarian Reform Program: domain suitable for contiguous, shall pertain to the landowner: provided, however, that in case the
(a) All alienable and disposable lands of agriculture: Provided, area selected for retention by the landowner is tenanted, the tenant shall have the
the public domain devoted to or suitable That landholdings of option to choose whether to remain therein or be a beneficiary in the same or
for agriculture. No reclassification of landowners with a total another agricultural land with similar or comparable features. In case the tenant
forest or mineral lands to agricultural area of five (5) hectares chooses to remain in the retained area, he shall be considered a leaseholder and
lands shall be undertaken after the and below shall not be shall lose his right to be a beneficiary under this Act. In case the tenant chooses
approval of this Act until Congress, covered for acquisition to be a beneficiary in another agricultural land, he loses his right as a leaseholder
taking into account ecological, and distribution to to the land retained by the landowner. The tenant must exercise this option
developmental and equity qualified beneficiaries. within a period of one (1) year from the time the landowner manifests his choice
considerations, shall have determined More specifically, the of the area for retention. In all cases, the security of tenure of the farmers or
by law, the specific limits of the public following lands are farmworkers on the land prior to the approval of this Act shall be respected.
domain. covered by the CARP:
Upon the effectivity of this Act, any sale, disposition, lease, management city or municipal court that he/she
contract or transfer of possession of private lands executed by the original is willing to work on the land to
landowner in violation of this Act shall be null and void: provided, however, that make it productive and to assume
those executed prior to this Act shall be valid only when registered with the the obligation of paying the
Register of Deeds within a period of three (3) months after the effectivity of this amortization for the compensation
Act. Thereafter, all Registers of Deeds shall inform the Department of Agrarian of the land and the land taxes
Reform (DAR) within thirty (30) days of any transaction involving agricultural thereon; all lands foreclosed by
lands in excess of five (5) hectares. government financial institutions;
all lands acquired by the
SECTION 6-A. Exception to Retention Limits. Provincial, city Presidential Commission on Good
and municipal government units acquiring private agricultural lands Government (PCGG); and all
by expropriation or other modes of acquisition to be used for actual, other lands owned by the
direct and exclusive public purposes, such as roads and bridges, government devoted to or suitable
public markets, school sites, resettlement sites, local government for agriculture, which shall be
facilities, public parks and barangay plazas or squares, consistent acquired and distributed
with the approved local comprehensive land use plan, shall not be immediately upon the effectivity
subject to the five (5)-hectare retention limit under this Section and of this Act, with the
Sections 70 and 73(a) of Republic Act No. 6657, as amended: implementation to be completed
Provided, That lands subject to CARP shall first undergo the land by June 30, 2012;
acquisition and distribution process of the program: Provided,
further, That when these lands have been subjected to expropriation,
the agrarian reform beneficiaries therein shall be paid just
compensation. (as added by Section 4, RA 9700)
SECTION 6-B. Review of Limits of Land Size. Within six (6)
months from the effectivity of this Act, the DAR shall submit a
comprehensive study on the land size appropriate for each type of
crop to Congress for a possible review of limits of land sizes
provided in this Act. (as added by Section 4, RA 9700)

SECTION 7. Priorities.
The Department of Agrarian Reform
(DAR) in coordination with the
Presidential Agrarian Reform Council
(PARC) shall plan and program the
acquisition and distribution of all
agricultural lands through a period of ten
(10) years from the effectivity of this Act.
Lands shall be acquired and distributed as
follows:
Phase One: Rice and corn lands under
Presidential Decree No. 27; all idle or
abandoned lands; all private lands
voluntarily offered by the owners for
agrarian reform; all lands foreclosed by the
government financial institutions; all lands
acquired by the Presidential Commission
on Good Government (PCGG); and all
other lands owned by the government
devoted to or suitable for agriculture,
which shall be acquired and distributed
immediately upon the effectivity of this
Act, with the implementation to be
completed within a period of not more
than four (4) years;
The DAR, in coordination with
the Presidential Agrarian Reform
Council (PARC) shall plan and
program the final acquisition and
distribution of allremaining
unacquired and
undistributedagricultural lands
from the effectivity of this Act
until June 30, 2014. Lands shall
be acquired and distributed as
follows:
Phase One: During the five (5)-
year extension period hereafter all
remaining lands above fifty (50)
hectares shall be covered for
purposes of agrarian reform upon
the effectivity of this Act. All
private agricultural lands of
landowners with aggregate
landholdings in excess of fifty
(50) hectares which have already
been subjected to a notice of
coverage issued on or before
December 10, 2008; rice and corn
lands under Presidential Decree
No. 27; all idle or abandoned
lands; all private lands voluntarily
offered by the owners for agrarian
reform: Provided, That with
respect to voluntary land transfer,
only those submitted by June 30,
2009 shall be
allowed: Provided, further, That
after June 30, 2009, the modes of
acquisition shall be limited to
voluntary offer to sell and
compulsory
acquisition: Provided,furthermore,
That all previously acquired lands
wherein valuation is subject to
challenge by landowners shall be
completed and finally resolved
pursuant to Section 17 of
Republic Act No. 6657, as
amended: Provided, finally, as
mandated by the Constitution,
Republic Act No. 6657, as
amended, and Republic Act No.
3844, as amended, only farmers
(tenants or lessees) and regular
farmworkers actually tilling the
lands, as certified under oath by
the Barangay Agrarian Reform
Council (BARC) and attested
under oath by the landowners, are
the qualified beneficiaries. The
intended beneficiary shall state
under oath before the judge of the
Phase Two: All alienable and disposable
public agricultural lands; all arable public
agricultural lands under agro-forest,
pasture and agricultural leases already
cultivated and planted to crops in
accordance with Section 6, Article XIII of
the Constitution; all public agricultural
lands which are to be opened for new
development and resettlement; and all
private agricultural lands in excess of fifty
(50) hectares, insofar as the excess
hectarage is concerned, to implement
principally the rights of farmers and
regular farmworkers, who are the landless,
to own directly or collectively the lands
they till, which shall be distributed
immediately upon the effectivity of this
Act, with the implementation to be
completed within a period of not more
than four (4) years.
Phase Three: All other private agricultural
lands commencing with large landholdings
and proceeding to medium and small
landholdings under the following
Phase Two: (a) Lands twenty-four
(24) hectares up to fifty (50)
hectares shall likewise be covered
for purposes of agrarian reform
upon the effectivity of this Act.
All alienable and disposable
public agricultural lands; all
arable public agricultural lands
under agro-forest, pasture and
agricultural leases already
cultivated and planted to crops in
accordance with Section 6, Article
XIII of the Constitution; all public
agricultural lands which are to be
opened for new development and
resettlement: and all private
agricultural lands of landowners
with aggregate landholdings
above twenty-four (24) hectares
up to fifty (50) hectares which
have already been subjected to a
notice of coverage issued on or
before December 10, 2008, to
implement principally the rights
of farmers and regular
farmworkers, who are landless, to
own directly or collectively the
lands they till, which shall be
distributed immediately upon the
effectivity of this Act, with the
implementation to be completed
by June 30, 2012; and
(b) All remaining private
agricultural lands of landowners
with aggregate landholdings in
excess of twenty-four (24)
hectares, regardless as to
whether these have been subjected
to notices of coverage or not, with
the implementation to begin on
July 1, 2012 and to be completed
by June 30, 2013;
Phase Three: All other private
agricultural lands commencing
with large landholdings and
proceeding to medium and small
schedule:
(a) Landholdings above twenty-four (24)
hectares up to fifty (50) hectares, to begin
on the fourth (4th) year from the
effectivity of this Act and to be completed
within three (3) years; and
(b) Landholdings from the retention limit
up to twenty-four (24) hectares, to begin
on the sixth (6th) year from the effectivity
of this Act and to be completed within four
(4) years; to implement principally the
right of farmers and regular farmworkers
who are landless, to own directly or
collectively the lands they till.
The schedule of acquisition and
redistribution of all agricultural lands
covered by this program shall be made in
accordance with the above order of
priority, which shall be provided in the
implementing rules to be prepared by the
Presidential Agrarian Reform Council
(PARC), taking into consideration the
following: the need to distribute land to the
tillers at the earliest practicable time; the
need to enhance agricultural productivity;
and the availability of funds and resources
to implement and support the program.
In any case, the PARC, upon
recommendation by the Provincial
Agrarian Reform Coordinating Committee
(PARCCOM), may declare certain
provinces or regions as priority land
reform areas, in which the acquisition and
distribution of private agricultural lands
therein may be implemented ahead of the
above schedules.
In effecting the transfer within these
guidelines, priority must be given to lands
that are tenanted. The PARC shall
establish guidelines to implement the
above priorities and distribution scheme,
including the determination of who are
qualified beneficiaries: provided, that an
owner-tiller may be a beneficiary of the
land he does not own but is actually
cultivating to the extent of the difference
between the area of the land he owns and
the award ceiling of three (3) hectares.
landholdings under the following
schedule:
(a) Lands of landowners with
aggregate landholdings above ten
(10) hectares up to twenty-four
(24) hectares, insofar as the
excess hectarage above ten (10)
hectares is concerned, to begin on
July 1, 2012 and to be completed
by June 30, 2013; and
(b) Lands of landowners with
aggregate landholdings from the
retention limit up to ten (10)
hectares, to begin on July 1, 2013
and to be completed by June 30,
2014; to implement principally
the right of farmers and regular
farmworkers who are landless, to
own directly or collectively the
lands they till.
The schedule of acquisition and
redistribution of all agricultural
lands covered by this program
shall be made in accordance with
the above order of priority, which
shall be provided in the
implementing rules to be prepared
by the PARC, taking into
consideration the following: the
landholdings wherein the farmers
are organized and understand the
meaning and obligations of
farmland ownership; the
distribution of lands to the tillers
at the earliest practicable time; the
enhancement of agricultural
productivity; and the availability
of funds and resources to
implement and support the
program: Provided, That the
PARC shall design and conduct
seminars, symposia, information
campaigns, and other similar
programs for farmers who are not
organized or not covered by any
landholdings. Completion by
these farmers of the
aforementioned seminars,
symposia, and other similar
programs shall be encouraged in
the implementation of this Act
particularly the provisions of this
Section.
Land acquisition and distribution
shall be completed by June 30,
2014 on a province-by- province
basis. In any case, the PARC or
the PARC Executive Committee
(PARC EXCOM), upon
recommendation by the Provincial
Agrarian Reform Coordinating
Committee (PARCCOM), may
declare certain provinces as
priority land reform areas, in
which case the acquisition and
distribution of private agricultural
lands therein under advanced
phases may be implemented
ahead of the above schedules on
the condition that prior phases in
these provinces have been
completed: Provided, That
notwithstanding the above
schedules, phase three (b) shall
not be implemented in a particular
province until at least ninety
percent (90%) of the provincial
balance of that particular province
as of January 1, 2009 under Phase
One, Phase Two (a), Phase Two
(b),,and Phase Three (a),
excluding lands under the
jurisdiction of the Department of
Environment and Natural
Resources (DENR), have been
successfully completed.
The PARC shall establish
guidelines to implement the above
priorities and distribution scheme,
including the determination of
who are qualified beneficiaries:
Provided, That an owner-tiller
may be a beneficiary of the land
he/she does not own but is
actually cultivating to the extent
of the difference between the area
of the land he/she owns and the
award ceiling of three (3)
hectares: Provided, further, That
collective ownership by the
farmer beneficiaries shall be
subject to Section 25 of Republic
Act No. 6657, as amended:
Provided, furthermore, That rural
women shall be given the
opportunity to participate in the
development planning and
implementation of this Act:
Provided, finally, That in no case
should the agrarian reform
beneficiaries' sex, economic,
religious, social, cultural and
political attributes adversely
affect the distribution of lands. (as
amended, Section 5, RA 9700)
SECTION 8. Multinational Corporations. All lands of the public domain
leased, held or possessed by multinational corporations or associations, and other
lands owned by the government or by government-owned or controlled
corporations, associations, institutions, or entities, devoted to existing and
operational agri-business or agro-industrial enterprises, operated by multinational
corporations and associations, shall be programmed for acquisition and
distribution immediately upon the effectivity of this Act, with the
implementation to be completed within three (3) years.
Lands covered by the paragraph immediately preceding, under lease,
management, grower or service contracts, and the like, shall be disposed of as
follows:
(a) Lease, management, grower or service contracts covering such lands covering
an aggregate area in excess of 1,000 hectares, leased or held by foreign
individuals in excess of 500 hectares are deemed amended to conform with the
limits set forth in Section 3 of Article XII of the Constitution.
(b) Contracts covering areas not in excess of 1,000 hectares in the case of such
corporations and associations, and 500 hectares, in the case of such individuals,
shall be allowed to continue under their original terms and conditions but not
beyond August 29, 1992, or their valid termination, whichever comes sooner,
after which, such agreements shall continue only when confirmed by the
appropriate government agency. Such contracts shall likewise continue even
after the land has been transferred to beneficiaries or awardees thereof, which
transfer shall be immediately commenced and implemented and completed
within the period of three (3) years mentioned in the first paragraph hereof.
(c) In no case will such leases and other agreements now being implemented
extend beyond August 29, 1992, when all lands subject hereof shall have been
distributed completely to qualified beneficiaries or awardees.
Such agreements can continue thereafter only under a new contract between the
government or qualified beneficiaries or awardees, on the one hand, and said
enterprises, on the other.
Lands leased, held or possessed by multinational corporations, owned by private
individuals and private non-governmental corporations, associations, institutions
and entities, citizens of the Philippines, shall be subject to immediate compulsory
acquisition and distribution upon the expiration of the applicable lease,
management, grower or service contract in effect as of August 29, 1987, or
otherwise, upon its valid termination, whichever comes sooner, but not later than
after ten (10) years following the effectivity of this Act. However during the said
period of effectivity, the government shall take steps to acquire these lands for
immediate distribution thereafter.
In general, lands shall be distributed directly to the individual worker-
beneficiaries. In case it is not economically feasible and sound to divide the land,
then they shall form a workers' cooperative or association which will deal with
the corporation or business association or any other proper party for the purpose
of entering into a lease or growers agreement and for all other legitimate
purposes. Until a new agreement is entered into by and between the workers'
cooperative or association and the corporation or business association or any
other proper party, any agreement existing at the time this Act takes effect
between the former and the previous landowner shall be respected by both the
workers' cooperative or association and the corporation, business, association or
such other proper party. In no case shall the implementation or application of this
Act justify or result in the reduction of status or diminution of any benefits
received or enjoyed by the worker-beneficiaries, or in which they may have a
vested right, at the time this Act becomes effective.
The provisions of Section 32 of this Act, with regard to production and income-
sharing shall apply to farms operated by multinational corporations.
During the transition period, the new owners shall be assisted in their efforts to
learn modern technology in production. Enterprises which show a willingness
and commitment and good-faith efforts to impart voluntarily such advanced
technology will be given preferential treatment where feasible.
In no case shall a foreign corporation, association, entity or individual enjoy any however, the provision
rights or privileges better than those enjoyed by a domestic corporation, of Section 32-A hereof
association, entity or individual. on incentives shall
SECTION 9. Ancestral Lands. For purposes of this Act, ancestral lands of apply.
each indigenous cultural community shall include, but not be limited to, lands in (c) Lands actually,
the actual, continuous and open possession and occupation of the community and directly and
its members: provided that the Torrens Systems shall be respected. exclusively used and
The right of these communities to their ancestral lands shall be protected to found to be necessary
ensure their economic, social and cultural well-being. In line with the principles for national defense,
of self-determination and autonomy, the systems of land ownership, land use, school sites and
and the modes of settling land disputes of all these communities must be campuses, including
recognized and respected. experimental farm
Any provision of law to the contrary notwithstanding, the PARC may suspend stations operated by
the implementation of this Act with respect to ancestral lands for the purpose of public or private
identifying and delineating such lands: provided, that in the autonomous regions, schools for educational
the respective legislatures may enact their own laws on ancestral domain subject purposes, seeds and
to the provisions of the Constitution and the principles enunciated in this Act and seedling research and
other national laws. pilot production
SECTION 10. Exemptions and Exclusions. center, church sites
Lands actually, directly and (a) Lands actually, and convents
exclusively used and found to be directly and appurtenant thereto,
necessary for parks, wildlife, forest exclusively used for mosque sites and
reserves, reforestation, fish parks, wildlife, forest Islamic centers
sanctuaries and breeding grounds, reserves, reforestation, appurtenant thereto,
watersheds, and mangroves, national fish sanctuaries and communal burial
defense, school sites and campuses breeding grounds, grounds and
including experimental farm stations watersheds and cemeteries, penal
operated by public or private schools mangroves shall be colonies and penal
for educational purposes, seeds and exempt from the farms actually worked
seedlings research and pilot coverage of this Act. by the inmates,
production centers, church sites and government and
convents appurtenant thereto, (b) Private lands private research and
mosque sites and Islamic centers actually, directly and quarantine centers and
appurtenant thereto, communal burial exclusively used for all lands with eighteen
grounds and cemeteries, penal prawn farms and percent (18%) slope
colonies and penal farms actually fishponds shall be and over, except those
worked by the inmates, government exempt from the already developed,
and private research and quarantine coverage of this shall be exempt from
centers and all lands with eighteen Act: Provided, That the coverage of this
percent (18%) slope and over, except said prawn farms and Act. (as amended
those already developed shall be fishponds have not by, Section 2, RA
exempt from the coverage of this been distributed and 7881)
Act. Certificate of Land
Ownership Award SECTION 11. Commercial Farming.
(CLOA) issued to Commercial farms, which are private Commercial farms, which are
agrarian reform agricultural lands devoted to private agricultural lands
beneficiaries under the commercial livestock, poultry and devoted to [REMOVES:
Comprehensive swine raising, and aquaculture including commercial livestock,
Agrarian Reform saltbeds, fishponds and prawn ponds, poultry and swine raising, and
Program. fruit farms, orchards, vegetable and cut- aquaculture
In cases where the flower farms, and cacao, coffee and including] saltbeds, fruit
fishponds or prawn rubber plantations, shall be subject to farms, orchards, vegetable
farms have been immediate compulsory acquisition and and cut-flower farms, and
subjected to the distribution after (10) years from the cacao, coffee and rubber
Comprehensive effectivity of this Act.n the case of new plantations, shall be subject to
Agrarian Reform Law, farms, the ten-year period shall begin immediate compulsory
by voluntary offer to from the first year of commercial acquisition and distribution
sell, or commercial production and operation, as determined after ten (10) years from the
farms deferment or by the DAR. During the ten-year effectivity of this Act.In the
notices of compulsory period, the government shall initiate the case of new farms, the ten-
acquisition, a simple steps necessary to acquire these lands, year period shall begin from
and absolute majority upon payment of just compensation for the first year of commercial
of the actual regular the land and the improvements thereon, production and operation, as
workers or tenants preferably in favor of organized determined by the DAR.
must consent to the cooperatives or associations, which During the ten-year period,
exemption within one shall hereafter manage the said lands for the Government shall initiate
(1) year from the the worker-beneficiaries. steps necessary to acquire
effectivity of this these lands, upon payment of
Act. When the workers If the DAR determines that the purposes just compensation for the land
or tenants do not agree for which this deferment is granted no and the improvements
to this exemption, the longer exist, such areas shall thereon, preferably in favor of
fishponds or prawn automatically be subject to organized cooperatives or
farms shall be redistribution. The provisions of Section associations which shall
distributed collectively 32 of this Act, with regard to production thereafter manage the said
to the worker- and income-sharing, shall apply to lands for the workers-
beneficiaries or tenants commercial farms. beneficiaries.
who shall form a
cooperative or [REMOVES: If the DAR
association to manage determines that the purposes
the same. for which this deferment is
In cases where the granted no longer exist, such
fishponds or prawn areas shall automatically be
farms have not been subject to redistribution.
subjected to the The provisions of Section 32
Comprehensive of the Act, with regard to
Agrarian Reform Law, production-and income-
the consent of the farm sharing, shall apply to
workers shall no commercial farms.] (as
longer be necessary, amended bySection 3, RA
 7881) just compensation for the land, within fifteen (15) days from the receipt of the
notice. After the expiration of the above period, the matter is deemed submitted
for decision. The DAR shall decide the case within thirty (30) days after it is
submitted for decision.
CHAPTER III (e) Upon receipt by the landowner of the corresponding payment or, in case of
Improvement of Tenurial and Labor Relations rejection or no response from the landowner, upon the deposit with an accessible
SECTION 12. Determination of Lease Rentals. In order to protect and bank designated by the DAR of the compensation in cash or in LBP bonds in
improve the tenurial and economic status of the farmers in tenanted lands under accordance with this Act, the DAR shall take immediate possession of the land
the retention limit and lands not yet acquired under this Act, the DAR is and shall request the proper Register of Deeds to issue a Transfer Certificate of
mandated to determine and fix immediately the lease rentals thereof in Title (TCT) in the name of the Republic of the Philippines. The DAR shall
accordance with Section 34 of Republic Act No. 3844, as amended: provided, thereafter proceed with the redistribution of the land to the qualified
that the DAR shall immediately and periodically review and adjust the rental beneficiaries.
structure for different crops, including rice and corn, or different regions in order (f) Any party who disagrees with the decision may bring the matter to the court
to improve progressively the conditions of the farmer, tenant or lessee. of proper jurisdiction for final determination of just compensation.
SECTION 13. Production-Sharing Plan. Any enterprise adopting the scheme CHAPTER VI
provided for in Section 32 hereof or operating under a production venture, lease, Compensation
management contract or other similar arrangement and any farm covered by SECTION 17. Determination of Just Compensation.
Sections 8 and 11 hereof is hereby mandated to execute within ninety (90) days In determining just compensation, In determining just
from the effectivity of this Act, a production-sharing plan, under guidelines the cost of acquisition of the land, compensation, the cost
prescribed by the appropriate government agency. the current value of the like of acquisition of the
Nothing herein shall be construed to sanction the diminution of any benefits such properties, its nature, actual use land, the value of the
as salaries, bonuses, leaves and working conditions granted to the employee- and income, the sworn valuation standing crop, the
beneficiaries under existing laws, agreements, and voluntary practice by the by the owner, the tax declarations, current value of like
enterprise, nor shall the enterprise and its employee-beneficiaries be prevented and the assessment made by properties, its nature,
from entering into any agreement with terms more favorable to the latter. government assessors shall be actual use and income,
CHAPTER IV considered. The social and the sworn valuation by
Registration economic benefits contributed by the owner, the tax
SECTION 14. Registration of Landowners. Within one hundred eighty (180) the farmers and the farmworkers declarations, the
days from the effectivity of this Act, all persons, natural or juridical, including and by the Government to the assessment made by
government entities, that own or claim to own agricultural lands, whether in their property as well as the non- government
names or in the name of others, except those who have already registered payment of taxes or loans secured assessors, [ADDS
pursuant to Executive Order No. 229, who shall be entitled to such incentives as from any government financing and seventy percent
may be provided for by the PARC, shall file a sworn statement in the proper institution on the said land shall be (70%) of the zonal
assessor's office in the form to be prescribed by the DAR, stating the following considered as additional factors to valuation of the
information: determine its valuation. Bureau of Internal
(a) the description and area of the property; Revenue (BIR),
(b) the average gross income from the property for at least three (3) years; translated into a basic
(c) the names of all tenants and farmworkers therein; formula by the DAR
(d) the crops planted in the property and the area covered by each crop as of June shall be considered,
1, 1987; subject to the final
(e) the terms of mortgages, lease, and management contracts subsisting as decision of the proper
of June 1, 1987, and court.] The social and
(f) the latest declared market value of the land as determined by the city or economic benefits
provincial assessor. contributed by the
farmers and the
SECTION 15. Registration of Beneficiaries. The DAR in coordination with farmworkers and by
the Barangay Agrarian Reform Committee (BARC) as organized in this Act, the Government to the
shall register all agricultural lessees, tenants and farmworkers who are qualified property as well as the
to be beneficiaries of the CARP. These potential beneficiaries with the assistance nonpayment of taxes
of the BARC and the DAR shall provide the following data: or loans secured from
(a) names and members of their immediate farm household; any government
(b) owners or administrators of the lands they work on and the length of tenurial financing institution on
relationship; the said land shall be
(c) location and area of the land they work; considered as
(d) crops planted; and additional factors to
(e) their share in the harvest or amount of rental paid or wages received. determine its
A copy of the registry or list of all potential CARP beneficiaries in the barangay valuation. (as amended
shall be posted in the barangay hall, school or other public buildings in the by Section 7, RA
barangay where it shall be open to inspection by the public at all reasonable 9700)
hours. SECTION 18. Valuation and Mode of Compensation. The LBP shall
compensate the landowner in such amounts as may be agreed upon by the
CHAPTER V landowner and the DAR and the LBP, in accordance with the criteria provided
Land Acquisition for in Sections 16 and 17, and other pertinent provisions hereof, or as may be
finally determined by the court, as the just compensation for the land.
SECTION 16. Procedure for SECTION 16. Procedure
Acquisition of Private Lands. for Acquisition and
Distribution of Private The compensation shall be paid in one of the following modes, at the option of
Lands. (title amended the landowner:
bySection 6, RA 9700) (1) Cash payment, under the following terms and conditions;
(a) For lands above fifty (50) hectares, insofar as the T
For purposes of acquisition of private lands, the following procedures shall be excess hectarage is concerned. in
followed: ti
(a) After having identified the land, the landowners and the beneficiaries, the
DAR shall send its notice to acquire the land to the owners thereof, by personal
delivery or registered mail, and post the same in a conspicuous place in the (b) For lands above twenty-four (24) hectares and up to T
municipal building and barangay hall of the place where the property is located. fifty (50) hectares. g
Said notice shall contain the offer of the DAR to pay a corresponding value in ti
accordance with the valuation set forth in Sections 17, 18, and other pertinent
provisions hereof. (c) For lands twenty-four (24) hectares and below. T
(b) Within thirty (30) days from the date of receipt of written notice by personal in
delivery or registered mail, the landowner, his administrator or representative ti
shall inform the DAR of his acceptance or rejection of the offer.
(2) Shares of stock in government-owned or controlled corporations, LBP
(c) If the landowner accepts the offer of the DAR, the Land Bank of the
preferred shares, physical assets or other qualified investments in accordance
Philippines (LBP) shall pay the landowner the purchase price of the land within
with guidelines set by the PARC;
thirty (30) days after he executes and delivers a deed of transfer in favor of the
(3) Tax credits which can be used against any tax liability;
government and surrenders the Certificate of Title and other muniments of title.
(4) LBP bonds, which shall have the following features:
(d) In case of rejection or failure to reply, the DAR shall conduct summary
(a) Market interest rates aligned with 91-day Treasury bill rates. Ten percent
administrative proceedings to determine the compensation for the land requiring
(10%) of the face value of the bonds shall mature every year from the date of
the landowner, the LBP and other interested parties to submit evidence as to the
issuance until the tenth (10th) year: provided, that should the landowner choose
to forego the cash portion, whether in full or in part, he shall be paid Farmers already in place and those not accommodated in the distribution of
correspondingly in LBP bonds; privately-owned lands will be given preferential rights in the distribution of lands
(b) Transferability and negotiability. Such LBP bonds may be used by the from the public domain.
landowner, his successors in interest or his assigns, up to the amount of their face SECTION 22-A. Order of Priority. - A landholding of a
value, for any of the following: landowner shall be distributed first to qualified beneficiaries under
(i) Acquisition of land or other real properties of the government, including Section 22, subparagraphs (a) and (b) of that same landholding up
assets under the Asset Privatization Program and other assets foreclosed by to a maximum of three (3) hectares each. Only when these
government financial institutions in the same province or region where the lands beneficiaries have all received three (3) hectares each, shall the
for which the bonds were paid are situated; remaining portion of the landholding, if any, be distributed to
(ii) Acquisition of shares of stock of government-owned or -controlled other beneficiaries under Section 22, subparagraphs (c), (d), (e),
corporations or shares of stocks owned by the government in private (f), and (g). (as added by Section 8, RA 9700)
corporations;
(iii) Substitution for surety or bail bonds for the provisional release of accused
persons, or performance bonds; SECTION 23. Distribution Limit. No qualified beneficiary may own more
than three (3) hectares of agricultural land.
(iv) Security for loans with any government financial institution, provided the SECTION 24. Award to Beneficiaries.
proceeds of the loans shall be invested in an economic enterprise, preferably in a The rights and responsibilities of the The rights and responsibilities of
small-and medium-scale industry, in the same province or region as the land for beneficiary shall commence from the the beneficiaries shall
which the bonds are paid; time the DAR makes an award of the commence from their receipt of a
(v) Payment for various taxes and fees to government; provided, that the use of land to him, which award shall be duly registered emancipation
these bonds for these purposes will be limited to a certain percentage of the completed within one hundred eighty patent or certificate of land
outstanding balance of the financial instruments: provided, further, that the (180) days from the time the DAR takes ownership award and their actual
PARC shall determine the percentage mentioned above; actual possession of the land. physical possession of the
(vi) Payment for tuition fees of the immediate family of the original bondholder Ownership of the beneficiary shall be awarded land. Such award shall
in government universities, colleges, trade schools, and other institutions; evidenced by a Certificate of Land be completed in not more than
(vii) Payment for fees of the immediate family of the original bondholder in Ownership Award, which shall contain one hundred eighty (180) days
government hospitals; and the restrictions and conditions provided from the date of registration of the
(viii) Such other uses as the PARC may from time to time allow. for in this Act, and shall be recorded in title in the name of the Republic
In case of extraordinary inflation, the PARC shall take appropriate measures to the Register of Deeds concerned and of the Philippines: Provided, That
protect the economy. annotated on the Certificate of Title. the emancipation patents, the
SECTION 19. Incentives for Voluntary Offers for Sales. Landowners, other certificates of land ownership
than banks and other financial institutions, who voluntarily offer their lands for award, and other titles issued
sale shall be entitled to an additional five percent (5%) cash payment. under any agrarian reform
SECTION 20. Voluntary Land Transfer. Landowners of agricultural lands program shall be indefeasible and
subject to acquisition under this Act may enter into a voluntary arrangement for imprescriptible after one (1) year
direct transfer of their lands to qualified beneficiaries subject to the following from its registration with the
guidelines: Office of the Registry of Deeds,
(a) All notices for voluntary land transfer must be submitted to the DAR within subject to the conditions,
the first year of the implementation of the CARP. Negotiations between the limitations and qualifications of
landowners and qualified beneficiaries covering any voluntary land transfer this Act, the property registration
which remain unresolved after one (1) year shall not be recognized and such land decree, and other pertinent laws.
shall instead be acquired by the government and transferred pursuant to this Act. The emancipation patents or the
(b) The terms and conditions of such transfer shall not be less favorable to the certificates of land ownership
transferee than those of the government's standing offer to purchase from the award being titles brought under
landowner and to resell to the beneficiaries, if such offers have been made and the operation of the Torrens
are fully known to both parties. system, are conferred with the
(c) The voluntary agreement shall include sanctions for non-compliance by either same indefeasibility and security
party and shall be duly recorded and its implementation monitored by the DAR. afforded to all titles under the said
SECTION 21. Payment of Compensation by Beneficiaries system, as provided for by
Under Voluntary Land Transfer. Direct payments in cash or in kind may be Presidential Decree No. 1529, as
by the farmer-beneficiary to the landowner under terms to be mutually agreed amended by Republic Act No.
upon by both parties, which shall be binding upon them, upon registration with 6732.
the approval by the DAR. Said approval shall be considered given, unless notice It is the ministerial duty of the
of disapproval is received by the farmer-beneficiary within thirty (30) days from Registry of Deeds to register the
the date of registration. title of the land in the name of the
In the event they cannot agree on the price of land, the procedure for compulsory Republic of the Philippines, after
acquisition as provided in Section 16 shall apply. The LBP shall extend the Land Bank of the Philippines
financing to the beneficiaries for purposes of acquiring the land. (LBP) has certified that the
CHAPTER VII necessary deposit in the name of
Land Redistribution the landowner constituting full
SECTION 22. Qualified Beneficiaries. The lands covered by the CARP shall payment in cash or in bond with
be distributed as much as possible to landless residents of the same barangay, or due notice to the landowner and
in the absence thereof, landless residents of the same municipality in the the registration of the certificate
following order of priority: of land ownership award issued to
(a) agricultural lessees and share tenants; the beneficiaries, and to cancel
(b) regular farmworkers; previous titles pertaining thereto.
(c) seasonal farmworkers; Identified and qualified agrarian
(d) other farmworkers; reform beneficiaries, based on
(e) actual tillers or occupants of public lands; Section 22 of Republic Act No.
(f) collectives or cooperatives of the above beneficiaries; and 6657, as amended, shall have
(g) others directly working on the land. usufructuary rights over the
Provided, however, that the children of landowners who are qualified under awarded land as soon as the DAR
Section 6 of this Act shall be given preference in the distribution of the land of takes possession of such land, and
their parents: and provided, further, that actual tenant-tillers in the landholdings such right shall not be diminished
shall not be ejected or removed therefrom. even pending the awarding of the
Beneficiaries under Presidential Decree No. 27 who have culpably sold, disposed emancipation patent or the
of, or abandoned their land are disqualified to become beneficiaries under this certificate of land ownership
Program. award.
A basic qualification of a beneficiary shall be his willingness, aptitude, and All cases involving the
ability to cultivate and make the land as productive as possible. The DAR shall cancellation of registered
adopt a system of monitoring the record or performance of each beneficiary, so emancipation patents, certificates
that any beneficiary guilty of negligence or misuse of the land or any support of land ownership award, and
extended to him shall forfeit his right to continue as such beneficiary. The DAR other titles issued under any
shall submit periodic reports on the performance of the beneficiaries to the agrarian reform program are
PARC. within the exclusive and original
If, due to the landowner's retention rights or to the number of tenants, lessees, or jurisdiction of the Secretary of the
workers on the land, there is not enough land to accommodate any or some of DAR. (as amended by Section 9,
them, they may be granted ownership of other lands available for distribution RA 9700)
under this Act, at the option of the beneficiaries.
SECTION 25. Award Ceilings for Beneficiaries.
Beneficiaries shall be Beneficiaries shall be awarded an area
awarded an area not not exceeding three (3) hectares, which
exceeding three (3) may cover a contiguous tract of land or
hectares which may cover a several parcels of land cumulated up to
contiguous tract of land or the prescribed award limits. The
several parcels of land determination of the size of the land for
cumulated up to the distribution shall consider crop type, soil
prescribed award limits. type, weather patterns and other pertinent
variables or factors which are deemed
critical for the success of the
beneficiaries.
For purposes of this Act, a For purposes of this Act, a landless
landless beneficiary is one beneficiary is one who owns less than
who owns less than three three (3) hectares of agricultural land.
(3) hectares of agricultural Whenever appropriate, the DAR shall
land. encourage the agrarian reform
The beneficiaries may opt beneficiaries to form or join farmers'
for collective ownership, cooperatives for purposes of affiliating
such as co-ownership or with existing cooperative banks in their
farmers cooperative or respective provinces or localities, as well
some other form of as forming blocs of agrarian reform
collective organization: beneficiaries, corporations, and
provided, that the total area partnerships and joining other farmers'
that may be awarded shall collective organizations, including
not exceed the total number irrigators' associations: Provided, That
of co-owners or members the agrarian reform beneficiaries shall be
of the cooperative or assured of corresponding shares in the
collective organization corporation, seats in the board of
multiplied by the award directors, and an equitable share in the
limit above prescribed, profit.
except in meritorious cases In general, the land awarded to a farmer-
as determined by the beneficiary should be in the form of an
PARC. Title to the individual title, covering one (1)
property shall be issued in contiguous tract or several parcels of
the name of the co-owners land cumulated up to a maximum of
or the cooperative or three (3) hectares.
collective organization as
the case may be. The beneficiaries may opt for collective
ownership, such as co-workers or
farmers cooperative or some other form
of collective organization and for the
issuance of collective ownership titles:
Provided, That the total area that may be
awarded shall not exceed the total
number of co-owners or members of the
cooperative or collective organization
multiplied by the award limit above
prescribed, except in meritorious cases as
determined by the PARC.
The conditions for the issuance of
collective titles are as follows:
(a) The current farm management system
of the land covered by CARP will not be
appropriate for individual farming of
farm parcels;
(b) The farm labor system is specialized,
where the farmworkers are organized by
functions and not by specific parcels
such as spraying, weeding, packing and
other similar functions;
(c) The potential beneficiaries are
currently not farming individual parcels
but collectively work on large contiguous
areas; and
(d) The farm consists of multiple crops
being farmed in an integrated manner or
includes non-crop production areas that
are necessary for the viability of farm
operations, such as packing plants,
storage areas, dikes, and other similar
facilities that cannot be subdivided or
assigned to individual farmers.
For idle and abandoned lands or
underdeveloped agricultural lands to be
covered by CARP, collective ownership
shall be allowed only if the beneficiaries
opt for it and there is a clear
development plan that would require
collective farming or integrated farm
operations exhibiting the conditions
described above. Otherwise, the land
awarded to a farmer-beneficiary should
be in the form of an individual title,
covering one (1) contiguous tract or
several parcels of land cumulated up to a
maximum of three (3) hectares.
In case of collective ownership, title to
the property shall be issued in the name
of the co-owners or the cooperative or
collective organization as the case may
be. If the certificates of land ownership
award are given to cooperatives then the
names of the beneficiaries must also be
listed in the same certificate of land
ownership award.
With regard to existing collective
certificates of land ownership award, the
DAR should immediately undertake the
parcelization of said certificates of land
ownership award, particularly those that
do not exhibit the conditions for
collective ownership outlined above. The
DAR shall conduct a review and
redocumentation of all the collective
certificates of land ownership award. The
DAR shall prepare a prioritized list of
certificates of land ownership award to
be parcelized. The parcelization shall
commence immediately upon approval
of this Act and shall not exceed a period
of three (3) years. Only those existing
certificates of land ownership award that
are collectively farmed or are operated in
an integrated manner shall remain as
collective. (as amended bySection 10,
RA 9700)
SECTION 26. Payment by Beneficiaries.
Lands awarded pursuant to this Act Lands awarded pursuant to this
shall be paid for by the beneficiaries Act shall be paid for by the
to the LBP in thirty (30) annual beneficiaries to the LBP in
amortizations at six percent (6%) thirty (30) annual amortizations
interest per annum. The payments for at six percent (6%) interest per
the first three (3) years after the annum.The annual
award may be at reduced amounts as amortization shall start one (1)
established by the PARC: provided, year from the date of the
that the first five (5) annual payments certificate of land ownership
may not be more than five percent award registration. However, if
(5%) of the value of the annual gross the occupancy took place after
production as established by the the certificate of land
DAR. Should the scheduled annual ownership award registration,
payments after the fifth year exceed the amortization shall start one
ten percent (10%) of the annual gross (1) year from actual
production and the failure to produce occupancy. The payments for
accordingly is not due to the the first three (3) years after the
beneficiary's fault, the LBP may award shall be at reduced
reduce the interest rate or reduce the amounts as established by the
principal obligations to make the PARC: Provided, That the first
repayment affordable. five (5) annual payments may
not be more than five percent
(5%) of the value of the annual
gross production as established
by the DAR. Should the
scheduled annual payments
The LBP shall have a lien by way of after the fifth (5th) year exceed
mortgage on the land awarded to the ten percent (10%) of the annual
beneficiary; and this mortgage may gross production and the
be foreclosed by the LBP for non- failure to produce accordingly
payment of an aggregate of three (3) is not due to the beneficiary's
annual amortizations. The LBP shall fault, the LBP shall reduce the
advise the DAR of such proceedings interest rate and/or reduce the
and the latter shall subsequently principal obligation to make
award the forfeited landholdings to the repayment affordable.(As
other qualified beneficiaries. A amended by Section 11, RA
beneficiary whose land, as provided 9700)
herein, has been foreclosed shall
thereafter be permanently The LBP shall have a lien by
disqualified from becoming a way of mortgage on the land
beneficiary under this Act. awarded to the beneficiary; and
this mortgage may be
foreclosed by the LBP for non-
payment of an aggregate of
three (3) annual amortizations.
The LBP shall advise the DAR
of such proceedings and the
latter shall subsequently award
the forfeited landholding to
other qualified beneficiaries. A
beneficiary whose land, as
provided herein, has been
foreclosed shall thereafter be
permanently disqualified from
becoming a beneficiary under
this Act.
SECTION 27. Transferability of Awarded Lands.
Lands acquired by beneficiaries under Lands acquired by beneficiaries under this Act or o
There is hereby created the Office of Support Services under the DAR to be headed by
an Undersecretary.
The Office shall provide general support and coordinative services in the
implementation of the program particularly in carrying out the provisions of the
following services to farmer-beneficiaries and affected landowners:
1) Irrigation facilities, especially second crop or dry season irrigation facilities;
2) Infrastructure development and public works projects in areas and settlements that
come under agrarian reform, and for this purpose, the preparation of the physical
development plan of such settlements providing suitable barangay sites, potable water
and power resources, irrigation systems and other facilities for a sound agricultural
development plan;
There is hereby created the Office of Support Services under the DAR to be headed by
an Undersecretary.
The Office shall provide general support and coordinative services in the
implementation of the program, particularly in carrying out the provisions of the
following services to farmer beneficiaries and affected landowners:
(1) Irrigation facilities, especially second crop or dry season irrigation facilities;
(2) Infrastructure development and public works projects in areas and settlements that
come under agrarian reform, and for this purpose, the preparation of the physical
development plan of such settlements providing suitable barangay sites, potable water
and power resources, irrigation systems, seeds and seedling banks, post harvest
facilities, and other facilities for a sound agricultural development plan. For the purpose
of providing the aforecited infrastructure and facilities, the DAR is authorized to enter
into contracts with interested private parties on long term basis or through joint-venture
agreements or build-operate-transfer scheme;

3) Government subsidies for the use of irrigation facilities; (3) Government subsidies for the use of irrigation facilities;

4) Price support and guarantee for all agricultural produce; (4) Price support and guarantee for all agricultural produce;
5) Extending to small landowners, farmers and farmers' organizations the necessary (5) Extending to small landowners, farmers and farmers' organizations the necessary
credit, like concessional and collateral-free loans, for agro-industrialization based on credit, like concessional and collateral-free loans, for agro-industrialization based on
social collaterals like the guarantees of farmers' organizations: social collaterals like the guarantees of farmers' organizations;
6) Promoting, developing and extending financial assistance to small- and medium- (6) Promoting, developing and extending financial assistance to small and medium-
scale industries in agrarian reform areas; scale industries in agrarian reform areas;
7) Assigning sufficient numbers of agricultural extension workers to farmers' (7) Assigning sufficient numbers of agricultural extension workers to farmers'
organizations; organizations;
8) Undertake research, development and dissemination of information on agrarian (8) Undertake research, development and dissemination of information on agrarian
reform and low-cost and ecologically sound farm inputs and technologies to minimize reform,plants and crops best suited for cultivation and marketing, and low-cost and
reliance on expensive and imported agricultural inputs; ecologically sound farm inputs and technologies to minimize reliance on expensive and
imported agricultural inputs;
9) Development of cooperative management skills through intensive training; (9) Development of cooperative management skills through intensive training;
10) Assistance in the identification of ready markets for agricultural produce and (10) Assistance in the identification of ready markets for agricultural produce and
training in other various prospects of marketing; and training in the other various aspects of marketing;
11) Administration, operation, management and funding of support services, programs (11) Conduct an effective information dissemination system through the Department of
and projects including pilot projects and models related to agrarian reform as developed Agriculture to promote marketing and minimize spoilage of agricultural produce and
by the DAR. products;
(12) Create a credit guarantee fund for agricultural landowners that will enhance the
collateral value of agricultural lands that are affected or will be affected by coverage
under the agrarian reform program; and
(13) Administration, operation, management and funding of support services programs
and projects including pilot projects and models related to agrarian reform as developed
by the DAR. (as amended bySection 1, RA 7905)
this Act may not be sold, transferred be sold, transferred or conveyed except through improvements
hereditaryhe succession,
has made or ontothethe
or conveyed except through hereditary government, or to the LBP, or to other qualified land. beneficiaries through the DAR for a
succession, or to the government, or period of ten (10) years: Provided, however, That the children or the spouse of the
the LBP, or to other qualified transferor shall have a right to repurchase the land from28.
SECTION theStanding
governmentCrops the Time of Acquisition. The landowner
oratLBP
beneficiaries for a period of ten (10) within a period of two (2) years. Due noticeshall of the availability
retain his shareofofthe land
any shall be
standing crops unharvested at the time the DAR shall
years: provided, however, that the given by the LBP to the BARC of the barangay take where the land
possession is situated.
of the land under TheSection 16 of this Act, and shall be given a
children or the spouse of the transferor PARCCOM, as herein provided, shall, in turn, be giventime
reasonable dueto notice thereof
harvest by the
the same.
shall have a right to repurchase the BARC.
land from the government or LBP The title of the land awarded under the agrarian reform VIII
CHAPTER must indicate that it is an
within a period of two (2) years. Due emancipation patent or a certificate of land Corporate
ownershipFarms award and the subsequent
notice of the availability of the land transfer title must also indicate that it is an emancipation
SECTION 29.patent FarmsorOwned
a certificate of landby Corporations or Other Business
or Operated
shall be given by the LBP to the ownership award Associations. In the case of farms owned or operated by corporations or other
Barangay Agrarian Reform Committee business associations, the following rules shall be observed by the PARC:
(BARC) of the barangay where the In general, lands shall be distributed directly to the individual worker-
land is situated. The Provincial If the land has not yet been fully paid by the beneficiary, the rights to the land may
beneficiaries.
Agrarian Reform Coordinating be transferred or conveyed, with prior approval of the
In case it isDAR, to any heir offeasible
not economically the and sound to divide the land, then it shall
Committee (PARCCOM) as herein beneficiary or to any other beneficiary who,beasowned a condition for such
collectively bytransfer or cooperative or association which will deal
the workers'
provided, shall, in turn, be given due conveyance, shall cultivate the land himself/herself. Failing compliance
with the corporation or businessherewith, the Until a new agreement is entered
association.
notice thereof by the BARC. land shall be transferred to the LBP which shall give
into by anddue notice the
between of the availability
workers' of
cooperative or association and the corporation
the land in the manner specified in the immediately
or businesspreceding paragraph.
association, any agreement existing at the time this Act takes effect
In the event of such transfer to the LBP, thebetween
latter shall
the compensate
former and the the previous
beneficiary in
landowner shall be respected by both the
one lump sum for the amounts the latter hasworkers'already cooperative
paid, together orwith the value
association andofthe corporation or business association.
improvements he/she has made on the land.(as amended
SECTION 30.byHomelots
Section 12,andRA 9700) for Members of Cooperatives. The
Farmlots
individual members of the cooperatives or corporations mentioned in the
preceding section shall be provided with homelots and small farmlots for their
If the land has not yet been fully paid family use, to be taken from the land owned by the cooperative or corporation.
by the beneficiary, the rights to the SECTION 31. Corporate Landowners. Corporate landowners may voluntarily
land may be transferred or conveyed, transfer ownership over their agricultural landholdings to the Republic of
with prior approval of the DAR, to any the Philippines pursuant to Section 20 hereof or to qualified beneficiaries, under
heir of the beneficiary or to any other such terms and conditions, consistent with this Act, as they may agree upon,
beneficiary who, as a condition for subject to confirmation by the DAR.
such transfer or conveyance, shall Upon certification by the DAR, corporations owning agricultural lands may give
cultivate the land himself. Failing their qualified beneficiaries the right to purchase such proportion of the capital
compliance herewith, the land shall be stock of the corporation that the agricultural land, actually devoted to agricultural
transferred to the LBP which shall activities, bears in relation to the company's total assets, under such terms and
give due notice of the availability of conditions as may be agreed upon by them. In no case shall the compensation
the land in the manner specified in the received by the workers at the time the shares of stocks are distributed be
immediately preceding paragraph. reduced. The same principle shall be applied to associations, with respect to their
equity or participation.
In the event of such transfer to the Corporations or associations which voluntarily divest a proportion of their capital
LBP, the latter shall compensate the stock, equity or participation in favor of their workers or other qualified
beneficiary in one lump sum for the beneficiaries under this section shall be deemed to have complied with the
amounts the latter has already paid, provisions of this Act: provided, that the following conditions are complied with:
together with the value of
SECTION 37. Support Services to the Beneficiaries. The PARC shall ensure that
support services to farmer-beneficiaries are provided, such as:
(a) Land surveys and titling;
(b) Liberalized terms on credit facilities and production loans;
(c) Extension services by way of planting, cropping, production and post-harvest
technology transfer, as well as marketing and management assistance and support to
cooperatives and farmers' organizations;
(d) Infrastructure such as access trails, mini-dams, public utilities, marketing and
storage facilities; and
(e) Research, production and use of organic fertilizers and other local substances
necessary in farming and cultivation.
The PARC shall formulate policies to ensure that support services to farmer-
beneficiaries shall be provided at all stages of land reform.
The Bagong Kilusang Kabuhayan sa Kaunlaran (BKKK) Secretariat shall be transferred
and attached to the LBP, for its supervision including all its applicable and existing
funds, personnel, properties, equipment and records.
Misuse or diversion of the financial and support services herein provided shall result in
sanctions against the beneficiary guilty thereof, including the forfeiture of the land
transferred to him or lesser sanctions as may be provided by the PARC, without
prejudice to criminal prosecution.
a) In order to safeguard the right of beneficiaries who own shares of stocks to
dividends and other financial benefits, the books of the corporation or association
shall be subject to periodic audit by certified public accountants chosen by the
beneficiaries;
b) Irrespective of the value of their equity in the corporation or association, the
beneficiaries shall be assured of at least one (1) representative in the board of
directors, or in a management or executive committee, if one exists, of the
corporation or association; and
c) Any shares acquired by such workers and beneficiaries shall have the same
rights and features as all other shares.
d) Any transfer of shares of stocks by the original beneficiaries shall be void ab
initio unless said transaction is in favor of a qualified and registered beneficiary
within the same corporation.
If within two (2) years from the approval of this Act, the land or stock transfer
envisioned above is not made or realized or the plan for such stock distribution
approved by the PARC within the same period, the agricultural land of the
corporate owners or corporation shall be subject to the compulsory coverage of
this Act.
SECTION 32. Production-Sharing. Pending final land transfer, individuals or
entities owning, or operating under lease or management contract, agricultural
lands are hereby mandated to execute a production-sharing plan with their farm
workers or farmworkers' organization, if any, whereby three percent (3%) of the
gross sales from the production of such lands are distributed within sixty (60)
days of the end of the fiscal year as compensation to regular and other
farmworkers in such lands over and above the compensation they currently
receive: provided, that these individuals or entities realize gross sales in excess
of five million pesos per annum unless the DAR, upon proper application,
determines a lower ceiling.
SECTION 37. Support Services for the Agrarian Reform Beneficiaries. The State
shall adopt the integrated policy of support services delivery to agrarian reform
beneficiaries. To this end, the DAR, the Department of Finance, and the Bangko Sentral
ng Pilipinas (BSP) shall institute reforms to liberalize access to credit by agrarian
reform beneficiaries. The PARC shall ensure that support services for agrarian reform
beneficiaries are provided, such as:
(a) Land surveys and titling;
(b) Socialized terms on agricultural credit facilities;
Thirty percent (30%) of all appropriations for support services referred to in Section 36
of Republic Act No. 6657, as amended, shall be immediately set aside and made
available for agricultural credit facilities:Provided, That one-third (1/3) of this
segregated appropriation shall be specifically allocated for subsidies to support the
initial capitalization for agricultural production to new agrarian reform beneficiaries
upon the awarding of the emancipation patent or the certificate of land ownership award
and the remaining two-thirds (2/3) shall be allocated to provide access to socialized
credit to existing agrarian reform beneficiaries, including the
leaseholders: Provided, further, the LBP and other concerned government financial
institutions, accredited savings and credit cooperatives, financial service cooperatives
and accredited cooperative banks shall provide the delivery system for disbursement of
the above financial assistance to individual agrarian reform beneficiaries, holders of
collective titles and cooperatives.
For this purpose, all financing institutions may accept as collateral for loans the
purchase orders, marketing agreements or expected harvests: Provided, That loans
obtained shall be used in the improvement or development of the farm holding of the
agrarian reform beneficiary or the establishment of facilities which shall enhance
production or marketing of agricultural products of increase farm income
therefrom: Provided, further, That of the remaining seventy percent (70%) for the
support services, fifteen percent (15%) shall be earmarked for farm inputs as requested
by the duly accredited agrarian reform beneficiaries' organizations, such as, but not
limited to: (1) seeds, seedlings and/or planting materials; (2) organic fertilizers; (3)
pesticides; (4) herbicides; and (5) farm animals, implements/machineries; and five
percent (5%) for seminars, trainings and the like to help empower agrarian reform
beneficiaries.
(c) Extension services by way of planting, cropping, production and post-harvest
technology transfer, as well as marketing and management assistance and support to
cooperatives and farmers' organizations;
(d) Infrastructure such as, but not limited to, access trails, mini-dams, public utilities,
marketing and storage facilities;
(e) Research, production and use of organic fertilizers and other local substances
necessary in farming and cultivation; and
(f) Direct and active DAR assistance in the education and organization of actual and
potential agrarian reform beneficiaries, at the barangay, municipal, city, provincial, and
national levels, towards helping them understand their rights and responsibilities as
owner-cultivators developing farm-related trust relationships among themselves and
their neighbors, and increasing farm production and profitability with the ultimate end
of empowering them to chart their own destiny. The representatives of the agrarian
reform beneficiaries to the PARC shall be chosen from the 'nominees of the duly
accredited agrarian reform beneficiaries' organizations, or in its absence, from
organizations of actual and potential agrarian reform beneficiaries as forwarded to and
processed by the PARC EXCOM.
The PARC shall formulate policies to ensure that support services for agrarian reform
beneficiaries shall be provided at all stages of the program implementation with the
concurrence of the concerned agrarian reform beneficiaries.
The PARC shall likewise adopt, implement, and monitor policies and programs to
ensure the fundamental equality of women and men in the agrarian reform program as
well as respect for the human rights, social protection, and decent working conditions of
both paid and unpaid men and women farmer-beneficiaries.
The Bagong Kilusang Kabuhayan sa Kaunlaran(BKKK) Secretariat shall be transferred
and attached to the LBP, for its supervision including all its applicable and existing
funds, personnel, properties, equipment and records.
Misuse or diversion of the financial and support services herein provided shall result in
sanctions against the beneficiary guilty thereof, including the forfeiture of the land
transferred to him/her or lesser sanctions as may be provided by the PARC, without
prejudice to criminal prosecution. (as amended bySection 14, RA 9700)
In the event that the individual or entity realizes a profit, an additional ten
percent (10%) of the net profit after tax shall be distributed to said regular and
other farmworkers within ninety (90) days of the end of the fiscal year.
To forestall any disruption in the normal operation of lands to be turned over to
the farmworker-beneficiaries mentioned above, a transitory period, the length of
which shall be determined by the DAR, shall be established.
During this transitory period, at least one percent (1%) of the gross sales of the
entity shall be distributed to the managerial, supervisory and technical group in
place at the time of the effectivity of this Act, as compensation for such
transitory managerial and technical functions as it will perform, pursuant to an
agreement that the farmworker-beneficiaries and the managerial, supervisory and
technical group may conclude, subject to the approval of the DAR.
SECTION 32-A. Incentives. Individuals or entities owning or
operating fishponds and prawn farms are hereby mandated to execute
within six (6) months from the effectivity of this Act an incentive plan
with their regular fishpond or prawn farmworkers or fishpond or prawn
farm workers' organization, if any, whereby seven point five percent
(7.5%) of their net profit before tax from the operation of the fishpond
or prawn farms are distributed within sixty (60) days at the end of the
fiscal year as compensation to regular and other pond workers in such
ponds over and above the compensation they currently receive.
In order to safeguard the right of the regular fishpond or prawn farm
workers under the incentive plan, the books of the fishpond or prawn
farm owners shall be subject to periodic audit or inspection by certified
public accountants chosen by the workers.
The foregoing provision shall not apply to agricultural lands
subsequently converted to fishpond or prawn farms provided the size of
the land converted does not exceed the retention limit of the
landowner. (as added bySection 4, RA 7881)
SECTION 33. Payment of Shares of Cooperative or Association. Shares of a complementary
cooperative or association acquired by farmers-beneficiaries or workers- support services
beneficiaries shall be fully paid for in an amount corresponding to the valuation delivery strategy for
as determined in the immediately succeeding section. The landowner and the existing agrarian
LBP shall assist the farmers-beneficiaries and workers-beneficiaries in the reform beneficiaries
payment for said shares by providing credit financing. that are not in
SECTION 34. Valuation of Lands. A valuation scheme for the land shall be barangays within the
formulated by the PARC, taking into account the factors enumerated in Section ARCs shall be
17, in addition to the need to stimulate the growth of cooperatives and the adopted by the DAR.
objective of fostering responsible participation of the workers-beneficiaries in
the creation of wealth.
In the determination of price that is just not only to the individuals but to society For this purpose, an
as well, the PARC shall consult closely with the landowner and the workers- Agrarian Reform
beneficiaries. Community is
In case of disagreement, the price as determined by the PARC, if accepted by the composed and
workers-beneficiaries, shall be followed, without prejudice to the landowner's managed by agrarian
right to petition the Special Agrarian Court to resolve the issue of valuation. reform beneficiaries
CHAPTER IX who shall be willing
Support Services to be organized and
SECTION 35. Creation of Support Services Office. to undertake the
integrated
SECTION 36. Funding for Support Services. development of an
In order to cover In order to cover the In order to cover the area and/or their
the expenses and expenses and cost of expenses and cost of organizations/
cost of support support services, at least support services, at cooperatives. In each
services, at least twenty-five percent (25%) least forty percent community, the
twenty-five of all appropriations for (40%) of all DAR, together with
percent (25%) of agrarian reform shall be appropriations for the agencies and
all appropriations immediately set aside and agrarian reform organizations
for agrarian reform made available for this during the five (5)- abovementioned,
shall be purpose: Provided, That year extension period shall identify the
immediately set for the next five (5) years, shall be immediately farmers' association,
aside and made a minimum of one (1) set aside and made cooperative or their
available for this Agrarian Reform available for this respective
purpose. In Community (ARC) shall purpose: Provided, federations approved
addition, the DAR be established by the That the DAR shall by the farmers-
shall be authorized DAR, in coordination pursue integrated beneficiaries that
to package with the local government land acquisition and shall take the lead in
proposals and units, non-governmental distribution and the agricultural
receive grants, aid organizations and people support services development of the
and other forms of organizations in each strategy requiring a area. In addition, the
financial assistance legislative district with a plan to be developed DAR, in close
from any source. predominant agricultural parallel to the land coordination with the
population: Provided, acquisition and congressional
further, That the areas in distribution process. oversight committee
which the ARCs are to be The planning and created herein, with
established shall have implementation for due notice to the
been fully subjected under land acquisition and concerned
this law. distribution shall be representative of the
hand-in-hand with legislative district
For this purpose, an support services prior to
Agrarian Reform delivery: implementation shall
Community shall be be authorized to
defined as a barangay or a package proposals
cluster of barangays Provided, further, and receive grants,
primarily composed and That for the next five aids and other forms
managed by Agrarian (5) years, as far as of financial
Reform Beneficiaries who practicable, a assistance from any
shall be willing to be minimum of two (2) source. (as amended
organized and undertake Agrarian Reform bySection 13, RA
the integrated Communities 9700)
development of an area (ARCs) shall be
and/or their established by the
organizations/cooperative. DAR, in SECTION 37-A. Equal Support Services for Rural Women. Support
In each community, the coordination with the services shall be extended equally to women and men agrarian reform
DAR, together with the local government beneficiaries.
agencies and units, non- The PARC shall ensure that these support services, as provided for in
organizations governmental this Act, integrate the specific needs and well-being of women farmer-
abovementioned, shall organizations,'comm beneficiaries taking into account the specific requirements of female
identify the farmers unity-based family members of farmer-beneficiaries.
association, cooperative cooperatives and The PARC shall also ensure that rural women will be able to participate
or their respective people's in all community activities. To this effect, rural women are entitled to
federation approved by organizations in each self-organization in order to obtain equal access to economic
the farmers-beneficiaries legislative district opportunities and to have access to agricultural credit and loans,
that shall take the lead in with a predominant marketing facilities and technology, and other support services, and
the agricultural agricultural equal treatment in land reform and resettlement schemes.
development of the area. population: Provided The DAR shall establish and maintain a women's desk, which will be
In addition, the DAR shall ,furthermore, That primarily responsible for formulating and implementing programs and
be authorized to package the areas in which activities related to the protection and promotion of women's rights, as
proposals and receive the ARCs are to be well as providing an avenue where women can register their complaints
grants, aid and other established shall and grievances principally related t o their rural activities. (as added
forms of financial have by Section 15, RA 9700)
assistance from any been substantially
source. (as amended covered under the
by Section 2, RA 7905) provisions of this Act
and other agrarian or
land reform SECTION 38. Support Services to SECTION 38. Support
laws:Provided, finall Landowners. The PARC with the Services for Landowners.
y, That a
assistance of such other government The PARC, with the assistance
agencies and instrumentalities as it may
direct, shall provide landowners
affected by the CARP and prior
agrarian reform programs with the
following services:
(a) Investment information, financial
and counseling assistance;
(b) Facilities, programs and schemes for
the conversion or exchange of bonds
issued for payment of the lands
acquired with stocks and bonds issued
by the National Government, the
Central Bank and other government
institutions and instrumentalities;
(c) Marketing of LBP bonds, as well as
promoting the marketability of said
bonds in traditional and non-traditional
financial markets and stock exchanges;
and
(d) Other services designed to utilize
productively the proceeds of the sale of
such lands for rural industrialization.
A landowner who invests in rural-based
industries shall be entitled to the
incentives granted to a registered
enterprise engaged in a pioneer or
preferred area of investment as provided
for in the Omnibus Investment Code of
1987, or to such other incentives as the
PARC, the LBP, or other government
financial institutions may provide.
The LBP shall redeem a landowner's
LBP bonds at face value, provided that
the proceeds thereof shall be invested in
a BOI-registered company or in any
agri-business or agro-industrial
enterprise in the region where the
landowner has previously made
investments, to the extent of thirty
percent (30%) of the face value of said
LBP bonds, subject to guidelines that
shall be issued by the LBP.
of such other government
agencies and instrumentalities
as it may direct, shall provide
landowners affected by the
CARP and prior agrarian
reform programs with the
following services:
(a) Investment information,
financial and counseling
assistance, particularly
investment information on
government-owned and/or -
controlled corporations and
disposable assets of the
government in pursuit of
national industrialization and
economic independence:
(b) Facilities, programs and
schemes for the conversion or
exchange of bonds issued for
payment of the lands acquired
with stocks and bonds issued
by the National
Government, the BSPand other
government institutions and
instrumentalities;
(c) Marketing of agrarian
reform bonds, as well as
promoting the marketability of
said bonds in traditional and
non-traditional financial
markets and stock
exchanges: and/or
(d) Other services designed to
utilize productively the
proceeds of the sale of such
lands for rural industrialization.
A landowner who invests in
rural-based industries shall be
entitled to the incentives
granted to a registered
enterprise engaged in a pioneer
or preferred area of investment
as provided for in the Omnibus
Investment Code of 1987, or to
such other incentives as the
PARC, the LBP, or other
government financial
institutions shall provide.
The LBP shall redeem a
landowner's agrarian reform
bonds at face value as an
incentive: Provided, That at
least fifty percent (50%) of the
proceeds thereof shall be
invested in a Board of
Investments (BOI)-registered
company or in any agri-
business or agro-industrial
enterprise in the region where
the CARP-covered landholding
is located. An additional
incentive of two percent (2%)
in cash shall be paid to a
landowner who maintains
his/her enterprise as a going
concern for five (5) years or
keeps his/her investments in a
BOI- registered firm for the
same period: Provided, further,
That the rights of the agrarian
reform beneficiaries are not, in
any way, prejudiced or
impaired thereby.
The DAR, the LBP and the
Department of Trade and
Industry shall jointly formulate
the program to carry out these
provisions under the
supervision of the PARC:
Provided, That in no case shall
the landowners' sex, economic,
religious, social, cultural and
political attributes exclude
them from accessing these
support services. (as amended
by Section 16, RA 9700)
SECTION 39. Land Consolidation. The DAR shall carry out land
consolidation projects to promote equal distribution of landholdings, to provide
the needed infrastructures in agriculture, and to conserve soil fertility and prevent
erosion.
CHAPTER X
Special Areas of Concern
SECTION 40. Special Areas of Concern. As an integral part of the
Comprehensive Agrarian Reform Program, the following principles in these
special areas of concern shall be observed:
(1) Subsistence Fishing. Small fisherfolk, including seaweed farmers, shall be
assured of greater access to the utilization of water resources.
(2) Logging and Mining Concessions. Subject to the requirement of a
balanced ecology and conservation of water resources, suitable areas, as
determined by the Department of Environment and Natural Resources (DENR),
in logging, mining and pasture areas, shall be opened up for agrarian settlements
whose beneficiaries shall be required to undertake reforestation and conservation
production methods. Subject to existing laws, rules and regulations, settlers and
members of tribal communities shall be allowed to enjoy and exploit the
products of the forest other than timber within the logging concessions.
(3) Sparsely Occupied Public Agricultural Lands. Sparsely occupied
agricultural lands of the public domain shall be surveyed, proclaimed and
developed as farm settlements for qualified landless people based on an
organized program to ensure their orderly and early development.
Agricultural land allocations shall be made for ideal family-size farms as
determined by the PARC. Pioneers and other settlers shall be treated equally in
every respect.
Subject to the prior rights of qualified beneficiaries, uncultivated lands of the
public domain shall be made available on a lease basis to interested and qualified
parties. Parties who will engage in the development of capital-intensive,
traditional or pioneering crops shall be given priority.
The lease period, which shall not be more than a total of fifty (50) years, shall be
proportionate to the amount of investment and production goals of the lessee. A
system of evaluation and audit shall be instituted.
(4) Idle, Abandoned, Foreclosed and Sequestered Lands. Idle, abandoned,
foreclosed and sequestered lands shall be planned for distribution as home lots
and family-size farmlots to actual occupants. If land area permits, other landless
families shall be accommodated in these lands.
(5) Rural Women. All qualified women members of the agricultural labor
force must be guaranteed and assured equal right to ownership of the land, equal
shares of the farm's produce, and representation in advisory or appropriate
decision-making bodies.
(6) Veterans and Retirees. In accordance with Section 7 of Article XVI of the
Constitution, landless war veterans and veterans of military campaigns, their
surviving spouses and orphans, retirees of the Armed Forces of the Philippines
(AFP) and the Integrated National Police (INP), returnees, surrenderees, and
similar beneficiaries shall be given due consideration in the disposition of
agricultural lands of the public domain.
(7) Agriculture Graduates. Graduates of agricultural schools who are landless
shall be assisted by the government, through the DAR, in their desire to own and
till agricultural lands.
CHAPTER XI
Program Implementation
SECTION 41. The Presidential Agrarian Reform Council.
The Presidential Agrarian Reform The Presidential Agrarian Reform
Council (PARC) shall be composed Council (PARC) shall be
of the President of the Philippines as composed of the President of the
Chairman, the Secretary of Agrarian Philippines as Chairperson, the
Reform as Vice-Chairman and the Secretary of Agrarian Reform as
following as members; Secretaries of Vice-Chairperson and the
the Departments of Agriculture; following as members: Secretaries
Environment and Natural Resources; of the Departments of
Budget and Management; Local Agriculture; Environment and
Government: Public Works and Natural Resources; Budget and
Highways; Trade and Industry; Management; Interior and Local
Finance; Labor and Employment; Government; Public Works and
Director-General of the National Highways; Trade and Industry;
Economic and Development Finance; and Labor and
Authority; President, Land Bank of Employment; Director-General of
the Philippines; Administrator, the National Economic and
National Irrigation Administration; Development Authority;
and three (3) representatives of President, Land Bank of the
affected landowners to represent Philippines; Administrator,
Luzon, Visayas and Mindanao; six National Irrigation
(6) representatives of agrarian reform Administration;Administrator,
beneficiaries, two (2) each from Land Registration Authority;
Luzon, Visayas and Mindanao, andsix (6) representatives of
provided that one of them shall be affected landowners to
from the cultural communities. represent Luzon, Visayas and
Mindanao; six (6) representatives
of agrarian reform beneficiaries,
two (2) each from Luzon, Visayas
and Mindanao:Provided, That at
least one (1) of them shall be from
the indigenous
peoples: Provided, further, That at
least one (1)of them shall come
from a duly recognized national
organization of rural women or a
national organization of agrarian
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 to 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 PARC shall provide the guidelines for the province-by-province implementation of
the CARP,taking into account the peculiarities and needs of each place, kind of crops
needed or suited, land distribution workload, beneficiaries development activities and
other factors prevalent or obtaining in the area. In all cases, the implementing agencies
at the provincial level shall promote the development of identified ARCs without
neglecting the needs and problems of other beneficiaries. The ten-year program of
distribution of public and private land in each province shall be adjusted from year to
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. (as amended by Section 4,
RA 7905)

reform beneficiaries with a

substantial number of women (a) Recommend to the
members: Provided, finally, That PARC the following:
at least twenty percent (20%) of
the members of the PARC shall
be women but in no case shall (1) Market prices to be used
they be less than two (2). (as in the determination of the
amended by Section 17, RA 9700) profit sharing obligation of
agricultural entities in the
province;
SECTION 42. Executive Committee. There shall be an Executive Committee
(EXCOM) of the PARC composed of the Secretary of the DAR as Chairman, (2) Adoption of the direct
and such other members as the President may designate, taking into account payment scheme between
Article XIII, Section 5 of the Constitution. Unless otherwise directed by PARC, the landowner and the
the EXCOM may meet and decide on any and all matters in between meetings of farmer and/or farmworker
the PARC: provided, however, that its decisions must be reported to the PARC beneficiary: Provided, that
immediately and not later than the next meeting. the amount and terms of
SECTION 43. Secretariat. A PARC Secretariat is hereby established to payment are not more
provide general support and coordinative services such as inter-agency linkages; burdensome to the agrarian
program and project appraisal and evaluation and general operations monitoring reform beneficiary than
for the PARC. under the compulsory
The Secretariat shall be headed by the Secretary of Agrarian Reform who shall coverage provision of the
be assisted by an Undersecretary and supported by a staff whose composition CARL: Provided, further,
shall be determined by the PARC Executive Committee and whose That the agrarian reform
compensation shall be chargeable against the Agrarian Reform Fund. All officers beneficiary agrees to the
and employees of the Secretariat shall be appointed by the Secretary of Agrarian amount and terms of
Reform. payment: Provided,
SECTION 44. Provincial Agrarian Reform Coordinating Committee furthermore, That the DAR
(PARCCOM). shall act as mediator in cases
A Provincial Agrarian Reform A Provincial Agrarian of disagreement between the
Coordinating Committee Reform Coordinating landowner and the farmer
(PARCCOM) is hereby created Committee is hereby created and/or farmworker
in each province, composed of in each province, composed beneficiary; Provided,
a Chairman, who shall be of a Chairman, who shall be finally, That the farmer
appointed by the President appointed by the President and/or farmer beneficiary
upon the recommendation of upon the recommendation of shall be eligible to borrow
the EXCOM, the Provincial the EXCOM, the Provincial from the LBP an amount
Agrarian Reform Officer as Agrarian Reform Officer as equal to eighty-five percent
Executive Officer, and one Executive Officer, and one (85%) of the selling price of
representative each from the (1) representative each from the land that they have
Departments of Agriculture, the Departments of acquired;
and of Environment and Agriculture, and of (3) Continuous processing
Natural Resources and from the Environment and Natural of applications for lease
LBP, one representative each Resources and from the back arrangements, joint-
from existing farmers' LBP; one (1) representative venture agreements and
organizations, agricultural each from existing farmers' other schemes that will
cooperatives and non- organizations, agricultural optimize the operating size
governmental organizations in cooperatives and non- for agricultural production
the province; two governmental organizations and also promote both
representatives from in the province; two (2) security of tenure and
landowners, at least one of representatives from security of income to farmer
whom shall be a producer landowners, at least one (1) beneficiaries: Provided, That
representing the principal crop of whom shall be a producer lease back arrangements
of the province, and two representing the principal should be the last resort. (as
representatives from farmer and crop of the province, and amended by Section 3, RA
farmworker-beneficiaries, at two (2) representatives from 7905)
least one of whom shall be a farmers and farmworkers or
farmer or farmworker beneficiaries, at least one (1)
representing the principal crop of whom shall be a farmer SECTION 45. Province-by-Province Implementation.
of the province, as members: or farmworker representing
provided, that in areas where the principal crop of the
there are cultural communities, province, as
the latter shall likewise have members: Provided, That in
one representative. areas where there are
cultural communities, the
The PARCCOM shall latter shall likewise have
coordinate and monitor the one (1) representative.
implementation of the CARP in
the province. It shall provide
information on the provisions The PARCCOM shall
of the CARP, guidelines issued coordinate and monitor the
by the PARC and on the implementation of the
progress of the CARP in the CARP in the province. It
province. shall provide information on
the provisions of the CARP,
guidelines issued by the
PARC and on the progress
of the CARP, in the
province; in addition, it
shall:
 SECTION 50-A. Exclusive Jurisdiction on Agrarian Dispute. No court or prosecutor's office shall take cognizance of cases
pertaining to the implementation of the CARP except those provided under Section 57 of Republic Act No. 6657, as amended.
If there is an allegation from any of the parties that the case is agrarian in nature and one of the parties is a farmer,
farmworker, or tenant, the case shall be automatically referred by the judge or the prosecutor to the DAR which shall
determine and certify within fifteen (15) days from referral whether an agrarian dispute exists: Provided, That from the
SECTION 46. determination of the DAR, an aggrieved party shall have judicial recourse. In cases referred by the municipal trial court and
Barangay the prosecutor's office, the appeal shall be with the proper regional trial court, and in cases referred by the regional trial court,
Agrarian the appeal shall be to the Court of Appeals.
Reform In cases where regular courts or quasi-judicial bodies have competent jurisdiction, agrarian reform beneficiaries or identified
Committee beneficiaries and/or their associations shall have legal standing and interest to intervene concerning their individual or
(BARC). collective rights and/or interests under the CARP.
Unless The fact of non-registration of such associations with the Securities and Exchange Commission, or Cooperative Development
otherwise Authority, or any concerned government agency shall not be used against them to deny the existence of their legal standing
provided in and interest in a case filed before such courts and quasi-judicial bodies. (as added by Section 19, RA 9700)
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;
(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
No court in the Philippines shall have jurisdiction to issue any restraining order or writ Except for the Supreme Court, no court in the Philippines shall have jurisdiction to issue
of preliminary injunction against the PARC or any of its duly authorized or designated any restraining order or writ of preliminary injunction against the PARC, the DAR, or
agencies in any case, dispute or controversy arising from, necessary to, or in connection any of its duly authorized or designated agencies in any case, dispute or controversy
with the application, implementation, enforcement, or interpretation of this Act and other arising from, necessary to, or in connection with the application, implementation,
pertinent laws on agrarian reform. enforcement, or interpretation of this Act and other pertinent laws on agrarian
reform. (as amended bySection 20, RA 9700)
tillage; direct and indirect contempts in likewise have the power to
(d) Assist qualified beneficiaries in obtaining credit from lending institutions; the same manner and subject to punish direct and indirect
(e) Assist in the initial determination of the value of the land; the same penalties as provided in contempts in the same manner
(f) Assist the DAR representatives in the preparation of periodic reports on the the Rules of Court. and subject to the same penalties
CARP implementation for submission to the DAR; as provided in the Rules of
(g) Coordinate the delivery of support services to beneficiaries; and Responsible farmer leaders shall Court.
(h) Perform such other functions as may be assigned by the DAR. be allowed to represent
(2) The BARC shall endeavor to mediate, conciliate and settle agrarian disputes themselves, their fellow farmers, Responsible farmer leaders shall
lodged before it within thirty (30) days from its taking cognizance thereof. If or their organizations in any be allowed to represent
after the lapse of the thirty day period, it is unable to settle the dispute, it shall proceedings before the DAR: themselves, their fellow farmers,
issue a certificate of its proceedings and shall furnish a copy thereof upon the provided, however, that when or their organizations in any
parties within seven (7) days after the expiration of the thirty-day period. there are two or more proceedings before the DAR
SECTION 48. Legal Assistance. The BARC or any member thereof may, representatives for any individual Provided, however, That when
whenever necessary in the exercise of any of its functions hereunder, seek the or group, the representatives there are two or more
legal assistance of the DAR and the provincial, city, or municipal government. should choose only one among representatives for any
SECTION 49. Rules and Regulations. The PARC and the DAR shall have the themselves to represent such party individual or group, the
power to issue rules and regulations, whether substantive or procedural, to carry or group before any DAR representatives should choose
out the objects and purposes of this Act. Said rules shall take effect ten (10) days proceedings. only one among themselves to
after publication in two (2) national newspapers of general circulation. represent such party or group
CHAPTER XII Notwithstanding an appeal to the before any DAR proceedings.
Administrative Adjudication Court of Appeals, the decision of
SECTION 50. Quasi-Judicial Powers of the DAR. the DAR shall be immediately Notwithstanding an appeal to the
The DAR is hereby vested with The DAR is hereby vested with executory. Court of Appeals, the decision of
primary jurisdiction to determine primary jurisdiction to determine the DAR shall be immediately
and adjudicate agrarian reform and adjudicate agrarian reform executory except a decision or a
matters and shall have exclusive matters and shall have exclusive portion thereof involving solely
original jurisdiction over all original jurisdiction over all the issue of just compensation.
matters involving the matters involving the (as amended by Section 18, RA
implementation of agrarian reform implementation of agrarian 9700)
except those falling under the reform, except those falling
exclusive jurisdiction of the under the exclusive jurisdiction
Department of Agriculture (DA) of the Department of Agriculture
and the Department of (DA) and the DENR. SECTION 51. Finality of Determination. Any case or controversy before it
Environment and Natural shall be decided within thirty (30) days after it is submitted for resolution. Only
Resources (DENR). one (1) motion for reconsideration shall be allowed. Any order, ruling or
It shall not be bound by decision shall be final after the lapse of fifteen (15) days from receipt of a copy
It shall not be bound by technical technical rules of procedure and thereof.
rules of procedure and evidence evidence but shall proceed to SECTION 52. Frivolous Appeals. To discourage frivolous or dilatory appeals
but shall proceed to hear and hear and decide all cases, from the decisions or orders on the local or provincial levels, the DAR may
decide all cases, disputes or disputes or controversies in a impose reasonable penalties, including but not limited to fines or censures upon
controversies in a most most expeditious manner, erring parties.
expeditious manner, employing all employing all reasonable means SECTION 53. Certification of the BARC. The DAR shall not take cognizance
reasonable means to ascertain the to ascertain the facts of every of any agrarian dispute or controversy unless a certification from the BARC that
facts of every case in accordance case in accordance with justice the dispute has been submitted to it for mediation and conciliation without any
with justice and equity and the and equity and the merits of the success of settlement is presented: provided, however, that if no certification is
merits of the case. Toward this case. Toward this end, it shall issued by the BARC within thirty (30) days after a matter or issue is submitted to
end, it shall adopt a uniform rule adopt a uniform rule of it for mediation or conciliation the case or dispute may be brought before the
of procedure to achieve a just, procedure to achieve a just, PARC.
expeditious and inexpensive expeditious and inexpensive CHAPTER XIII
determination for every action or determination of every action or Judicial Review
proceeding before it. proceeding before it. SECTION 54. Certiorari. Any decision, order, award or ruling of the DAR on
any agrarian dispute or on any matter pertaining to the application,
It shall have the power to summon It shall have the power to implementation, enforcement, or interpretation of this Act and other pertinent
witnesses, administer oaths, take summon witnesses, administer laws on agrarian reform may be brought to the Court of Appeals by certiorari
testimony, require submission of oaths, take testimony, require except as otherwise provided in this Act within fifteen (15) days from the receipt
reports, compel the production of submission of reports, compel of a copy thereof.
books and documents and answers the production of books and The findings of fact of the DAR shall be final and conclusive if based on
to interrogatories and documents and answers to substantial evidence.
issuesubpoena, and subpoena interrogatories and SECTION 55. No Restraining Order or Preliminary Injunction.
duces tecum, and enforce its writs issuesubpoena, and subpoena SECTION 56. Special Agrarian Court. The Supreme Court shall designate at
through sheriffs or other duly duces tecum and to enforce its least one (1) branch of the Regional Trial Court (RTC) within each province to
deputized officers. It shall writs through sheriffs or other act as a Special Agrarian Court.
likewise have the power to punish duly deputized officers. It shall
The Supreme Court may designate more branches to constitute such additional assets recovered and assets recovered and from recovered and from sales
Special Agrarian Courts as may be necessary to cope with the number of from sales of ill- sales of ill-gotten wealth of ill-gotten wealth
agrarian cases in each province. In the designation, the Supreme Court shall give gotten wealth recovered through the recovered through the
preference to the Regional Trial Courts which have been assigned to handle recovered through the Presidential Commission PCGG excluding the
agrarian cases or whose presiding judges were former judges of the defunct Presidential on Good Government; amount appropriated for
Court of Agrarian Relations. Commission on Good compensation to victims
The Regional Trial Court (RTC) judges assigned to said courts shall exercise Government; of human rights violations
said special jurisdiction in addition to the regular jurisdiction of their respective under the applicable law;
courts. (c) Proceeds of the c) Proceeds of the (c) Proceeds of the
The Special Agrarian Courts shall have the powers and prerogatives inherent in disposition of the disposition of the disposition and
or belonging to the Regional Trial Courts. properties of the properties of the development of the
SECTION 57. Special Jurisdiction. The Special Agrarian Courts shall have Government in Government in foreign properties of the
original and exclusive jurisdiction over all petitions for the determination of just foreign countries; countries, for the specific Government in foreign
compensation to landowners, and the prosecution of all criminal offenses under purposes of financing countries, for the specific
this Act. The Rules of Court shall apply to all proceedings before the Special production credits, purposes of financing
Agrarian Courts, unless modified by this Act. infrastructure and other production credits,
The Special Agrarian Courts shall decide all appropriate cases under their special support services required infrastructure and other
jurisdiction within thirty (30) days from submission of the case for decision. by this Act; support services required
SECTION 58. Appointment of Commissioners. The Special Agrarian Courts, by this Act;
upon their own initiative or at the instance of any of the parties, may appoint one d) All income and (d) All income and
or more commissioners to examine, investigate and ascertain facts relevant to the collections arising from collections of whatever
dispute including the valuation of properties, and to file a written report thereof the agrarian reform form and nature
with the court. operations, projects and arisingfrom the agrarian
SECTION 59. Orders of the Special Agrarian Courts. No order of the Special programs of CARP reform operations,
Agrarian Courts on any issue, question, matter or incident raised before them implementing agencies; projects and programs of
shall be elevated to the appellate courts until the hearing shall have been the DARand other CARP
terminated and the case decided on the merits. implementing agencies;
SECTION 60. Appeals. An appeal may be taken from the decision of the (d) Portion of e) Portion of amounts (e) Portion of amounts
Special Agrarian Courts by filing a petition for review with the Court of Appeals amounts accruing to accruing to the accruing to the
within fifteen (15) days from receipt of notice of the decision; otherwise, the the Philippines from Philippines from all Philippines from all
decision shall become final. all sources of official sources of official sources of official foreign
An appeal from the decision of the Court of Appeals, or from any order, ruling or foreign grants and foreign aid grants and aid grants and
decision of the DAR, as the case may be, shall be by a petition for review with concessional concessional financing concessional financing
the Supreme Court within a non-extendible period of fifteen (15) days from financing from all from all countries, to be from all countries, to be
receipt of a copy of said decision. countries, to be used used for the specific used for the specific
SECTION 61. Procedure on Review. Review by the Court of Appeals or the for the specific purposes of financing purposes of financing
Supreme Court, as the case may be, shall be governed by the Rules of Court. The purposes of financing production, credits, productions, credits,
Court of Appeals, however, may require the parties to file simultaneous production credits, infrastructures, and other infrastructures, and other
memoranda within a period of fifteen (15) days from notice, after which the case infrastructures, and support services required support services required
is deemed submitted for decision. other support services by this Act; by this Act;
SECTION 62. Preferential Attention in Courts. All courts in the Philippines, required by this Act;
both trial and appellate, shall give preferential attention to all cases arising from f) Yearly appropriations (f) Yearly appropriations
or in connection with the implementation of the provisions of this Act. of no less than Three of no less than Five
All cases pending in court arising from or in connection with the implementation
billion pesos billion pesos
of this Act shall continue to be heard, tried and decided into their finality, (P3,000,000,000.00) from (P5,000,000,000.00) from
notwithstanding the expiration of the ten-year period mentioned in Section 5 the General the General
hereof.
Appropriations Act; Appropriations Act;
CHAPTER XIV
g) Other government (g) Gratuitous financial
Financing
funds not otherwise assistance from legitimate
SECTION 63. Funding Source.
appropriated. (as sources; and
The initial amount The amount needed to The amount needed to
amended by Section 1,
needed to implement implement this Act until further implement the RA 8532)
this Act for the period the year 2008 shall be CARP as provided in this
(e) Other government (h) Other government
of ten (10) years upon funded from the Agrarian Act, until June 30, 2014,
funds not otherwise funds not otherwise
approval hereof shall Reform Fund. upon expiration of
appropriated. appropriated.
be funded from the funding under Republic
Agrarian Reform Act No. 8532 and other
Fund created under pertinent laws,shall be All funds All funds appropriated to
Sections 20 and 21 of funded from the Agrarian appropriated to implement the provisions
Executive Order No. Reform Fund and other implement the of this Act shall be
229. Additional funding sources in the provisions of this Act considered continuing
amounts necessary for amount of at least One shall be considered appropriations during the
this purpose are hereby hundred fifty billion pesos continuing period of its
authorized to be (P150,000,000,000.00). appropriations during implementation: Provided,
Additional amounts appropriated in excess of the period of its That if the need arises,
are hereby authorized the initial Additional amounts are implementation specific amounts for bond
to be appropriated as funds, amounting to Fifty hereby authorized to be redemptions, interest
and when needed to billion pesos appropriated as and when payments and other
augment the Agrarian (P50,000,000,000.00) needed to augment the existing obligations
Reform Fund in order provided under Sections Agrarian Reform Fund in arising from the
to fully implement 20 and 21 of Executive order to fully implement implementation of the
the provisions of this Order No. 229. the provisions of this program shall be included
Act. The additional amount Act during the five (5)- in the annual General
hereby authorized to be year extension period. Appropriations
appropriated shall in no Act:Provided, further,
case exceed Fifty billion That all just compensation
pesos payments to landowners,
(P50,000,000,000.00). including execution of
judgments therefor, shall
Sources of funding or only be sourced from the
appropriations shall Sources of funding or Sources of funding or Agrarian Reform
include the following: appropriations shall appropriations shall Fund: Provided, however,
include the following: include the following: That just compensation
payments that cannot be
covered within the
(a) Proceeds of the a) Proceeds of the sales of (a) Proceeds of the sales
approved annual budget
sales of the Assets the Assets Privatization of the Privatization and
of the program shall be
Privatization Trust; Trust; Management Office
chargeable against the
(PMO);
debt service program of
(b) All receipts from b) All receipts from b)All receipts from assets 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. (as amended
bySection 21, RA 9700)
Section 64. Financial Intermediary for the CARP. The Land Bank of
the Philippines shall be the financial intermediary for the CARP, and shall insure
that the social justice objectives of the CARP shall enjoy a preference among its
priorities.
CHAPTER XV
General Provisions
Section 65. Conversion of Lands.
After the lapse of five (5) After the lapse of five (5) years from its award,
years from its award, when when the land ceases to be economically feasible
the land ceases to be and sound for agricultural purposes, or the
economically feasible and locality has become urbanized and the land will
sound for agricultural have a greater economic value for residential,
purposes, or the locality commercial or industrial purposes, the DAR,
has become urbanized and upon application of the beneficiary or the
the land will have a greater landowner with respect only to his/her retained
economic value for area which is tenanted, with due notice to the
residential, commercial or affected parties, and subject to existing laws, may
industrial purposes, the authorize the reclassification or conversion of the
DAR, upon application of land and its disposition: Provided, That if the
the beneficiary or the applicant is a beneficiary under agrarian laws and
landowner, with due notice the land sought to be converted is the land
to the affected parties, and awarded to him/her or any portion thereof, the
subject to existing laws, applicant, after the conversion is granted, shall
may authorize the invest at least ten percent (10%)of the proceeds
reclassification or coming from the conversion in government
conversion of the land and securities: Provided, further, That the applicant
its disposition: provided, upon conversion shall fully pay the price of the
that the beneficiary shall land:Provided, furthermore, That irrigated and
have fully paid his irrigable lands, shall not be subject to
obligation. conversion: Provided,finally, That the National
Irrigation Administration shall submit a
consolidated data on the location nationwide of
all irrigable lands within one (1) year from the
effectivity of this Act.
Failure to implement the conversion plan within
five (5) years from the approval of such
conversion plan or any violation of the conditions
of the conversion order due to the fault of the
applicant shall cause the land to automatically be
covered by CARP. (as amended by Section 22,
RA 9700)
Section 65-A. Conversion into Fishpond and Prawn Farms. No
conversion of public agricultural lands into fishponds and prawn farms
shall be made except in situations where the provincial government with
the concurrence of the Bureau of Fisheries and Aquatic Resources
(BFAR) declares a coastal zone as suitable for fishpond development. In
such case, the Department of Environment and Natural Resources
(DENR) shall allow the lease and development of such areas: Provided,
That the declaration shall not apply to environmentally critical projects
and areas as contained in title (A) sub-paragraph two, (B-5) and (C-1)
and title (B), number eleven (11) of Proclamation No. 2146, entitled
"Proclaiming Certain Areas and Types of Projects as Environmentally
Critical and Within the Scope of the Environmental Impact Statement
(EIS) System established under Presidential Decree No. 1586," to ensure
the protection of river systems, aquifers and mangrove vegetations from
pollution and environmental degradation: Provided, further, That the
approval shall be in accordance with a set of guidelines to be drawn up
and promulgated by the DAR and the BFAR: Provided, furthermore,
That small-farmer cooperatives and organizations shall be given
preference in the award of the Fishpond Lease Agreement (FLAs).
No conversion of more than five (5) hectares of private lands to fishpond
and prawn farms shall be allowed after the passage of this Act, except
when the use of the land is more economically feasible and sound for
fishpond and/or prawn farm, as certified by the Bureau of Fisheries and
Aquatic Resources (BFAR), and a simple and absolute majority of the
regular farm workers or tenants agree to the conversion, the Department
of Agrarian Reform, may approve applications for change in the use of
the land: Provided, finally, That no piecemeal conversion to circumvent
the provisions of this Act shall be allowed. In these cases where the
change of use is approved, the provisions of Section 32-A hereof on
incentives shall apply. (as added by Section 5, RA 7881)
Section 65-B. Inventory. Within one (1) year from the effectivity of
this Act, the BFAR shall undertake and finish an inventory of all
government and private fishponds and prawn farms, and undertake a
program to promote the sustainable management and utilization of prawn
farms and fishponds. No lease under Section 65-A hereof may be granted
until after the completion of the said inventory.
The sustainable management and utilization of prawn farms and
fishponds shall be in accordance with the effluent standards, pollution
charges and other pollution control measures such as, but not limited to,
the quantity of fertilizers, pesticides and other chemicals used, that may
be established by the Fertilizer and Pesticide Authority (FPA), the
Environmental Management Bureau (EMB), and other appropriate
government regulatory bodies, and existing regulations governing water
utilization, primarily Presidential Decree No. 1067, entitled "A Decree
Instituting A Water Code, Thereby Revising and Consolidating the Laws
Governing the Ownership, Appropriation, Utilization, Exploitation,
Development, Conservation and Protection of Water Resources. (as
added by Section 5, RA 7881)
Section 65-C. Protection of Mangrove Areas. In existing Fishpond
Lease Agreements (FLAs) and those that will be issued after the
effectivity of this Act, a portion of the fishpond area fronting the sea,
sufficient to protect the environment, shall be established as a buffer zone
and be planted to specified mangrove species to be determined in
consultation with the regional office of the DENR. The Secretary of
Environment and Natural Resources shall provide the penalties for any
violation of this undertaking as well as the rules for its
implementation. (as added by Section 5, RA 7881)
Section 65-D. Change of Crops. The change of crops to commercial
crops or high value crops shall not be considered as a conversion in the
use or nature of the land. The change in crop should, however, not
prejudice the rights of tenants or leaseholders should there be any and the
consent of a simple and absolute majority of the affected farm workers, if
any, shall first be obtained. (as added by Section 5, RA 7881)
Section 66. Exemptions from Taxes and Fees of Land Transfers. Transactions
under this Act involving a transfer of ownership, whether from natural or
juridical persons, shall be exempted from taxes arising from capital gains. These
transactions shall also be exempted from the payment of registration fees, and all
other taxes and fees for the conveyance or transfer thereof; provided, that all
arrearages in real property taxes, without penalty or interest, shall be deductible
from the compensation to which the owner may be entitled.
Section 67. Free Registration of Patents and Titles. All Registers of Deeds are
hereby directed to register, free from payment of all fees and other charges,
patents, titles and documents required for the implementation of the CARP.
Section 68. Immunity of Government Agencies from Undue Interference.
No injunction, restraining order, prohibition or mandamus In cases falling
shall be issued by the lower courts against the Department within their
of Agrarian Reform (DAR), the Department of jurisdiction, no
Agriculture (DA), the Department of Environment and injunction,
Natural Resources (DENR), and the Department of Justice restraining order,
(DOJ) in their implementation of the program. prohibition or
mandamus shall be
issued by the
regional trial courts,
municipal trial
courts, municipal
circuit trial courts,
and metropolitan
trial courts against
the DAR, the DA,
the DENR, and the
Department of
Justice in their
implementation of
the program. (as
amended bySection
23, RA 9700)
Section 69. Assistance of Other Government Entities. The PARC, in the
exercise of its functions, is hereby authorized to call upon the assistance and
support of other government agencies, bureaus and offices, including
government-owned or -controlled corporations.
Section 70. Disposition of Private Agricultural Lands. The sale or disposition
of agricultural lands retained by a landowner as a consequence of Section 6
hereof shall be valid as long as the total landholdings that shall be owned by the
transferee thereof inclusive of the land to be acquired shall not exceed the
landholding ceilings provided for in this Act.
Any sale or disposition of agricultural lands after the effectivity of this Act found
to be contrary to the provisions hereof shall be null and void.
Transferees of agricultural lands shall furnish the appropriate Register of Deeds
and the BARC an affidavit attesting that his total landholdings as a result of the
said acquisition do not exceed the landholding ceiling. The Register of Deeds
shall not register the transfer of any agricultural land without the submission of
this sworn statement together with proof of service of a copy thereof to the
BARC.
Section 71. Bank Mortgages. Banks and other financial institutions allowed
by law to hold mortgage rights or security interests in agricultural lands to secure
loans and other obligations of borrowers, may acquire title to these mortgaged property with
properties, regardless of area, subject to existing laws on compulsory transfer of respect to
foreclosed assets and acquisition as prescribed under Section 13 of this Act. unregistered lands,
Section 72. Lease, Management, Grower or Service Contracts, Mortgages and as the case may
Other Claims. Lands covered by this Act under lease, management, grower or be, shall be
service contracts, and the like shall be disposed of as follows: conclusive for the
(a) Lease, management, grower or service contracts covering private lands may purpose of this
continue under their original terms and conditions until the expiration of the Act.
same even if such land has, in the meantime, been transferred to qualified
beneficiaries. (f) The sale,
(b) Mortgages and other claims registered with the Register of Deeds shall be transfer or
assumed by the government up to an amount equivalent to the landowner's conveyance by a
compensation value as provided in this Act. beneficiary of the
Section 73. Prohibited Acts and Omissions. right to use or any
The following are The following are prohibited: other usufructuary
prohibited: (a) The ownership or possession, for the purpose of right over the land
(a) The ownership circumventing the provisions of this Act, of he acquired by
or possession, for agricultural lands in excess of the total retention limits virtue of being a
the purpose of or award ceilings by any person, natural or juridical, beneficiary, in
circumventing the except those under collective ownership by farmer- order to
provisions of this beneficiaries; circumvent the
Act, of agricultural provisions of this
lands in excess of (b) The forcible entry or illegal detainer by persons Act.
the total retention who are not qualified beneficiaries under this Act to
limits or award avail themselves of the rights and benefits of the Section 73-A. Exception. The provisions of Section 73, paragraph (e), to the
ceilings by any Agrarian Reform Program; contrary notwithstanding, the sale and/or transfer of agricultural land in cases
person, natural or where such sale, transfer or conveyance is made necessary as a result of a bank's
juridical, except (c) Any conversion by any landowner foreclosure of the mortgaged land is hereby permitted. (as added by Section 6,
those under of his/heragricultural land into any non-agricultural use RA 7881)
collective with intent to avoid the application of this Act Section 74. Penalties.
ownership by to his/herlandholdings and to Any person who Any person who knowingly or willfully violates the provisions of
farmer- dispossess his/her bonafide tenant farmers; knowingly or willfully this Act shall be punished by imprisonment of not less than one (1)
beneficiaries; (d) The malicious and willful prevention or obstruction violates the provisions of month to not more than three (3) years or a fine of not less than One
by any person, association or entity of the this Act shall be punished thousand pesos (P1,000.00) and not more than Fifteen thousand
by imprisonment of not pesos (P15,000.00), or both, at the discretion of the court: Provided,
(b) The forcible implementation of the CARP;
less than one (1) month to That the following corresponding penalties shall be imposed for the
entry or illegal (e) The sale, transfer, conveyance or change of the not more than three (3) specific violations hereunder:
detainer by nature of lands outside of urban centers and city limits years or a fine of not less (a) Imprisonment of three (3) years and one (1) day to six (6) years
persons who are either in whole or in part after the effectivity of this than one thousand pesos or a fine of not less than Fifty thousand pesos (P50,000.00) and not
not qualified Act, except after final completion of the appropriate (P1,000.00) and not more more than One hundred fifty thousand pesos (P150,000.00), or both,
beneficiaries under conversion under Section 65 of Republic Act No. 6657, than fifteen thousand pesos at the discretion of the court upon any person who violates Section
this Act to avail as amended. The date of the registration of the deed of (P15,000.00), or both, at 73, subparagraphs (a), (b), (f), (g), and (h) of Republic Act No. 6657,
themselves of the conveyance in the Register of Deeds with respect to the discretion of the court. as amended; and
If the offender is a (b) Imprisonment of six (6) years and one (1) day to twelve (12)
rights and benefits titled lands and the date of the issuance of the tax corporation or association, years or a fine of not less than Two hundred thousand pesos
of the Agrarian declaration to the transferee of the property with the officer responsible (P200,000.00) and not more than One million pesos
Reform Program; respect to unregistered lands, as the case may be, shall therefor shall be criminally (P1,000,000.00), or both, at the discretion of the court upon any
be conclusive for the purpose of this Act; liable. person who violates Section 73, subparagraphs (c), (d), (e), and (i) of
(c) The conversion (f) The sale, transfer or conveyance by a beneficiary of Republic Act No. 6657, as amended.
by any landowner the right to use or any other usufructuary right over the If the offender is a corporation or association, the officer responsible
therefor shall be criminally liable. (as amended by Section 25, RA
of his agricultural land he/she acquired by virtue of being a beneficiary,
9700)
land into any non- in order to circumvent the provisions of this Act;
agricultural use (g) The unjustified, willful, and malicious act by a Section 75. Suppletory Application of Existing Legislation. The provisions of
with intent to responsible officer or officers of the government Republic Act No. 3844 as amended, Presidential Decree Nos. 27 and 266 as
avoid the through the following: amended, Executive Order Nos. 228 and 229, both Series of 1987; and other
application of this (1) The denial of notice and/or reply to landowners; laws not inconsistent with this Act shall have suppletory effect.
Act to his (2) The deprivation of retention rights; Section 76. Repealing Clause. Section 35 of Republic Act No. 3844,
landholdings and (3) The undue or inordinate delay in the preparation of Presidential Decree No. 316, the last two paragraphs of Section 12 of
to dispossess his claim folders; or Presidential Decree No. 946, Presidential Decree No. 1038, and all other laws,
tenant farmers of (4) Any undue delay, refusal or failure in the payment decrees, executive orders, rules and regulations, issuances or parts thereof
the land tilled by of just compensation; inconsistent with this Act are hereby repealed or amended accordingly.
them; (h) The undue delay or unjustified failure of the DAR, Section 77. Separability Clause. If, for any reason, any section or provision of
(d) The willful the LBP, the PARC, the PARCCOM, and any this Act is declared null and void, no other section, provision, or part thereof
prevention or concerned government agency or any government shall be affected and the same shall remain in full force and effect.
obstruction by any official or employee to submit the required report, data Section 78. Effectivity Clause. This Act shall take effect immediately after
person, association and/or other official document involving the publication in at least two (2) national newspapers of general circulation.
or entity of the implementation of the provisions of this Act, as Approved: June 10, 1988
implementation of required by the parties or the government, including
the CARP; the House of Representatives and the Senate of the New Provisions in RA 9700 which did not repeal, neither amend nor supersede
(e) The sale, Philippines as well as their respective committees, and any provision in RA 6657
transfer, the congressional oversight committee created herein; Section 26. Congressional Oversight Committee. A Congressional Oversight
conveyance or (i) The undue delay in the compliance with the Committee on Agrarian Reform (COCAR) is hereby created to oversee and
change of the obligation to certify or attest and/or falsification of the monitor the implementation of this Act. It shall be composed of the Chairpersons
nature of lands certification or attestation as required under Section 7 of the Committee on Agrarian Reform of both Houses of Congress, three (3)
outside of urban of Republic Act No. 6657, as amended; and Members of the House of Representatives, and three (3) Members of the Senate
centers and city (j) Any other culpable neglect or willful violations of of the Philippines, to be designated respectively by the Speaker of the House of
limits either in the provisions of this Act. Representatives and the President of the Senate of the Philippines.
whole or in part In the case of government officials and employees, a The Chairpersons of the Committees on Agrarian Reform of the House of
after the conviction under this Act is without prejudice to any Representatives and of the Senate of the Philippines shall be the Chairpersons of
effectivity of this civil case and/or appropriate administrative the COCAR. The Members shall receive no compensation; however, traveling
Act. The date of proceedings under civil service law, rules and and other necessary expenses shall be allowed.
the registration of regulations. Any person convicted under this Act shall In order to carry out the objectives of this Act, the COCAR shall be provided
the deed of not be entitled to any benefit provided for in any with the necessary appropriations for its operation. An initial amount of Twenty-
conveyance in the agrarian reform law or program. (as amended five million pesos (P25,000,000.00) is hereby appropriated for the COCAR for
Register of Deeds bySection 24, RA 9700) the first year of its operation and the same amount shall be appropriated every
with respect to year thereafter.
titled lands and the The term of the COCAR shall end six (6) months after the expiration of the
date of the extended period of five (5) years.
issuance of the tax Section 27. Powers and Functions of the COCAR. The COCAR shall have the
declaration to the following powers and functions:
transferee of the (a) Prescribe and adopt guidelines which shall govern its work;
(b) Hold hearings and consultations, receive testimonies and reports pertinent to
its specified concerns;
(c) Secure from any department, bureau, office or instrumentality of the
government such assistance as may be needed, including technical information,
preparation and production of reports and submission of recommendations or
plans as it may require, particularly a yearly report of the record or performance
of each agrarian reform beneficiary as provided under Section 22 of Republic
Act No. 6657, as amended;
(d) Secure from the DAR or the LBP information on the amount of just
compensation determined to be paid or which has been paid to any landowner;
(e) Secure from the DAR or the LBP quarterly reports on the disbursement of
funds for the agrarian reform program;
(f) Oversee and monitor, in such a manner as it may deem necessary, the actual
implementation of the program and projects by the DAR;
(g) Summon by subpoena any public or private citizen to testify before it, or
require by subpoena duces tecum to produce before it such records, reports, or
other documents as may be necessary in the performance of its functions;
(h) Engage the services of resource persons from the public and private sectors
as well as civil society including the various agrarian reform groups or
organizations in the different regions of the country as may be needed;
(i) Approve the budget for the work of the Committee and all disbursements
therefrom, including compensation of all personnel;
(j) Organize its staff and hire and appoint such employees and personnel whether
temporary, contractual or on constancy subject to applicable rules; and
(k) Exercise all the powers necessary and incidental to attain the purposes for
which it is created.
Section 28. Periodic Reports. The COCAR shall submit to the Speaker of the
House of Representatives and to the President of the Senate of
the Philippines periodic reports on its findings and recommendations on actions
to be undertaken by both Houses of Congress, the DAR, and the PARC.
Section 29. Access to Information. Notwithstanding the provisions of
Republic Act No. 1405 and other pertinent laws, information on the amount of
just compensation paid to any landowner under Republic Act No. 6657, as
amended, and other agrarian reform laws shall be deemed public information.
Section 30. Resolution of Case. Any case and/or proceeding involving the
implementation of the provisions of Republic Act No. 6657, as amended, which
may remain pending on June 30, 2014 shall be allowed to proceed to its finality
and be executed even beyond such date.
Section 31. Implementing Rules and Regulations. The PARC and the DAR
shall provide the necessary implementing rules and regulations within thirty (30)
days upon the approval of this Act. Such rules and regulations shall take effect
on July 1, 2009 and it shall be published in at least two (2) newspapers of general
circulation.
Section 32. Repealing Clause. Section 53 of Republic Act No. 3844,
otherwise known as the Agricultural Land Reform Code, is hereby repealed and
all other laws, decrees, executive orders, issuances, rules and regulations, or parts
thereof inconsistent with this Act are hereby likewise repealed or amended
accordingly.
Section 33. Separability Clause. If, for any reason, any section or provision of
this Act is declared unconstitutional or invalid, the other sections or provisions
not affected thereby shall remain in full force and effect.
Section 34. Effectivity Clause. This Act shall take effect on July 1, 2009 and
it shall be published in at least two (2) newspapers of general circulation.
DATES OF APPROVAL OF RELEVANT AGRARIAN REFORM LAWS
TITLE DATE OF APPROVAL
Republic Act No. 6657 June 10, 1988
Republic Act No. 7881 February 20, 1995
Republic Act No. 7905 February 23, 1995
Republic Act No. 8532 February 23, 1998
Republic Act No. 9700 August 7, 2009
REPUBLIC ACT NO. 8048
AN ACT PROVIDING FOR THE REGULATION OF THE CUTTING OF
COCONUT TREES, ITS REPLENISHMENT, PROVIDING PENALTIES
THEREFOR AND FOR OTHER PURPOSES.
Section 1. Title. This act shall be known as the "Coconut Preservation Act of
1995."
Sec. 2. Declaration of Policy. Considering the importance of the coconut
industry in nation building being one of the principal industries and one of the
largest income earners of the country, it becomes mandatory for the Government
to step-in and regulate the unabated and indiscriminate cutting of the coconut
trees.For reasons of national interest, it is hereby declared the policy of the State
to provide for the growth of the industry by embarking on a sustainable and
efficient replanting program.chan robles virtual law library
Sec. 3. Definitions of terms. For purposes of this Act, the following terms
shall be defined as follows:
(a) Coconut tree refers to a tall pinnate-leaved palm bearing a large edible fruit
called the coconut.
chan robles virtual law library
(b) Replanting program refers to the program formulated by the Philippine
Coconut Authority (PCA) to replenish the coconut trees which have been
permitted to be cut by the PCA.
(c) Permit refers to the written authorization of the PCA allowing the cutting of
coconut trees.
(d) Economically unproductive farm refers to a coconut area where the cost of
farm production and maintenance is greater than the generated proceeds or
income for a period of at least three (3) years.
(e) Senescent coconut trees are coconut trees which are already overage, weak
and no longer productive.
Sec. 4. Prohibition. No coconut tree shall be cut except in the following cases
and only after a permit had been issued therefor:
(a) When the tree is sixty (60) years old;chan robles virtual law library
chan robles virtual law library
(b) When the tree is no longer economically productive;
(c) When the tree is disease-infested;
(d) When the tree is damaged by typhoon or lightning;
(e) When the agricultural land devoted to coconut production shall have been
converted in accordance with law into residential, commercial or industrial areas;
(f) When the land devoted to coconut production shall be converted into other
agricultural uses or other agriculture-related activities in pursuance to a
conversion duly applied for by the owner and approved by the proper
authorities: Provided, That no conversion shall be allowed by the PCA until after
it shall have been verified and certified that for a period of at least three (3) years
the majority of the coconut trees have become senescent and economically
unproductive or where the coconut farm is not adaptable to sound management
practices on account of geographical location, topography, drainage and other
conditions rendering the farm economically unproductive; and
(g) When the tree would cause hazard to life and property.
No other causes other than those abovementioned shall be considered as a valid
ground for cutting.
Sec. 5. Permit to cut. No coconut tree or trees shall be cut unless a permit
therefore, upon due application being made, has been issued by the PCA
pursuant to Section 6 of this Act.
The applicant shall pay an application fee in the amount of Twenty-five pesos
(P25.00) for every tree intended to be cut payable to the PCA.Ten pesos (P10.00)
of the fee shall accrue in favor of the PCA, Ten pesos (P10.00) in favor of the
municipal government concerned, and Five pesos (P5.00) in favor of the
barangay unit concerned. The fees shall be used for the PCA's replanting
program and for the repair and rehabilitation of roads of the respective local
government units which have been damaged by the passage of heavy vehicles
used for transporting coconut lumber.chan robles virtual law library
No permit to cut shall be granted unless the applicant, in coordination with the
PCA and the local government unit concerned, has already planted the equivalent
number of coconut trees applied for to be cut.
Such replantings, however, shall not apply to areas converted into industrial,
commercial or residential sites or land transformed in accordance with law, into
other agricultural purposes.
The PCA, in coordination with the local government unit concerned, shall
regulate and oversee the planting, fertilization and care of the newly planted
coconut trees.For this purpose, it shall be incumbent upon the PCA to conduct,
from time to time, on-the-spot inspections of the sites where the coconut trees
have been planted.
Sec. 6. Authority to Cut. The Philippine Coconut Authority shall have the
exclusive authority to grant permit for the cutting of coconut trees.The authority
may be delegated to the city or municipal mayors as the PCA may determine.
Sec. 7. Implementing Rules. The Philippine Coconut Authority shall be the
lead agency to implement the provisions of this Act.For this purpose, the
Philippine Coconut Authority shall prescribe the necessary rules and regulations
for the immediate and effective implementation of this Act.
The PCA, in order to effectively implement the provisions of this Act, may
request the assistance of any local government unit, to monitor and ensure
compliance with this Act including its implementing rules and regulations.For
this purpose, the PCA may deputize the Philippine National Police or other law
enforcement agencies to investigate and apprehend those caught violating the
provisions of this Act, including the confiscation of illegally cut trees.
In addition to the foregoing, the PCA shall also, in coordination with the local
government unit concerned, require the registration of all sawmills, lumberyards,
coconut wood dealers and other persons or entities dealing in the processing,
sawing of the coconut trees.
Sec. 8. Penalties. Those found guilty of violating this Act or any rules and
regulations issued pursuant hereto shall, upon conviction, be punished by
imprisonment of not less than one (1) year but not more than six (6) years, or a
fine of not less than Fifty thousand pesos (P50,000) but not more than Five
hundred thousand pesos (P500,000), or both in the discretion of the court.
If the offender is a corporation or a juridical entity, the official who ordered or
allowed the commission of the offense shall be punished with the same
penalty.chan robles virtual law library
If the offender is in the government service, he shall, in addition be dismissed
from office.
Sec. 9. Separability Clause. If any part or section of this Act is declared
unconstitutional, such declaration shall not affect the other parts or sections of
this Act.
Sec. 10. Repealing Clause. All laws, presidential decrees, executive orders,
rules and regulations inconsistent with any provisions of this Act shall be
deemed repealed or modified accordingly.
Sec. 11. Effectivity Clause. This Act shall take effect upon its approval.
Approved: June 7, 1995