Professional Documents
Culture Documents
ACKNOWLEDGMENT
BARIE would like to thank the following offices for their valuable inputs: Legal Affairs Office, Bureau of Land Acquisition and Distribution, Special Concerns Office, Policy and
Strategic Research Service, and the Land Use Conversion Committee. Likewise, BARIE would like to thank Mr. Gil R. Tuparan for writing portions of the initial draft.
FOREWORD
The Department of Agrarian Reform is cogniz ant of the role that various DAR Frontliners, like the MAROs and ARPTs play in the implementation of the Comprehensive
Agrarian Reform Program at the grassroots level. As frontliners, they are the first contact of the program's various clientele. It is from them that the agrarian reform beneficiaries,
the landowners, and the general public get their first impressions of DAR as a social development agency.
In the course of implementing the program, these field implementors are often faced with issues and problems due to varied understanding and interpretation of the CARP
law and its implementing guidelines and issuances.
To address this, BARIE, in coordination with other DAR units, produced in 1993 the first edition of the Handbook for CARP Implementors. This resource material which was
distributed to all MAROs and other field personnel was developed to enhance the knowledge, attitude and commitment of DAR frontliners in implementing the program.
Since last year, however, new implementing guidelines as well as amendments to the existing Administrative Orders were issued. This prompted BARIE to produce the
Second Edition of the Handbook for DAR Frontliners to ensure that the resource material is well updated and responsive to the needs of the field implementors. The Handbook
which is also presented in a question- and- answer format, contains an updated discussion of the various provisions of the program and its implementing mechanisms,
procedures and guidelines.
It is hoped that this Handbook will be a valuable reference tool in transforming our field personnel into successful and multi- faceted implementors of the agrarian reform
program.
(SGD.) ERNESTO D. GARILAO
Secretary
HANDBOOK FOR CARP IMPLEMENTORS
TABLE OF CONTENTS
Chapter 1
1.1
1.2
1.3
1.4
1.5
Chapter 2
Chapter 3
CARP COVERAGE
3.1
CARP Scope
3.2
Implementation Schedule
Chapter 4
4.1
Exclusions
4.1.1.
4.2
Exemptions
4.3
4.4
Chapter 5
LAND ACQUISITION
5.1
5.2
Modes of Acquisition
5.2.1
Compulsory Acquisition
5.2.2
5.2.3
5.3
5.4
5.5
5.6
Reconstitution of Title
5.7
5.8
Chapter 6
Field Investigation
:
6.1
Qualification of Beneficiaries
6.2
Order of Priority
6.3
Farmworker Beneficiaries
6.4
Screening of Beneficiaries
Chapter 7
7.1
Retention Limit
7.2
7.3
7.4
7.5
7.6
Procedures for the Exercise of the Right of Retention and Award to Qualified Children
7.7
7.8
7.9
7.10
Retention Under PD 27
7.11
Homestead Lands
Chapter 8
Chapter 9
LAND SURVEY
9.1
Just Compensation
9.2
9.3
9.4
9.5
9.6
Modes of Compensation
9.7
9.8
PD 27 Lands
9.9
EO 407 Lands
9.10
Chapter 10
LAND DISTRIBUTION
10.1
10.2
Award Ceiling
10.3
10.4
10.5
Chapter 11
PAYMENT BY BENEFICIARIES
11.1
11.2
11.3
11.4
Chapter 12
SUPPORT SERVICES
12.1
12.2
Chapter 13
AGRICULTURAL LEASEHOLD
13.1
13.2
Tenancy Relationship
13.3
13.4
13.5
Lease Rental
13.6
13.7
Chapter 14
14.1
Coverage
14.2
DAR's Authority
14.3
Main Features
14.4
Chapter 15
15.1
15.2
15.3
Requirements
15.4
Deferment Period
15.5
Chapter 16
16.1
Definition
16.2
16.3
16.4
16.5
16.6
Chapter 17
LAND TRANSACTION
17.1
17.2
17.3
17.4
17.5
Right of Redemption
17.6
Valid Transactions
17.7
Invalid Transactions
Chapter 18
PUBLIC LANDS
18.1
18.2
18.3
Settlement Areas
18.4
Public Agricultural Lands Turned Over by the National Livelihood Support Fund
18.5
Lands of the Public Domain Covered by Cancelled or Expired Fishpond Lease Agreements
:
LANDED ESTATES
20.1
20.2
20.3
BARC Composition
20.4
BARC Officers
20.5
Formation of BARC
20.6
Chapter 21
21.1
DARAB Jurisdiction
"the 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
stock, which will allow beneficiaries to receive a just share of the fruits of the land they work." (Section 3, RA 6657)
Basically, agrarian reform is land reform the transfer of control and ownership of agricultural land to the actual tillers plus a package of support services: economic
and physical infrastructure support services (ECOPISS), (e.g., credit, extension, irrigation, roads and bridges, marketing facilities), and human resource and institutional
development or social infrastructure building and strengthening (SIBS).
What is being "Reformed" in Agrarian Reform?
Agrarian reform seeks to correct numerous defects in the country's agrarian structure. Foremost among these is the concentration of land ownership in only a few people,
such that the huge majority of the population does not have access to land.
According to the 1980 Census of Agriculture, farms less than three hectares in siz e predominate in the Philippines, representing nearly 70% of the 3.4 million total number of
farms. However, they cover only 30% of the country's 9.7 million hectares total farm area. In contrast, farms with areas of more than 10 hectares are very few, constituting only
3.5% of the number of farms. Yet they cover 26% of the farm area.
So what's wrong with that?
The concentration of the ownership of lands in the hands of a very few means that the majority is deprived of the opportunity to use land as a basic production resource.
The failure to access land results in unemployment, low incomes, low productivity, poor purchasing power, and sluggish rural economies.
A more equitable distribution of land ownership, on the other hand, promotes a more equitable distribution of income which, in turn, promotes greater economic activity.
More producers and income earners, require more services and goods which other sectors of the economy produce. The increase in domestic demand and production
results in broadbased, sustainable economic growth. And that's only the economic side of it.
With improved standards of living, greater people participation in the community's affairs is expected. This will lead to a more dynamic and genuine democracy.
1.2
AGRARIAN REFORM ISSUES: LAND TENURE IMPROVEMENT vs. SUPPORT SERVICES DELIVERY
Land redistribution is so costly, why don't we just use the money for credit, extension, infrastructure, post harvest facilities, etc., for greater productivity?
Such a strategy would benefit those who own or control the land. It is not surprising, therefore, that more often than not, it is a strategy propounded by those who already
own land.
For the benefits of agricultural investments to seep down and reach the lower economic strata, inequitable land ownership structure will have to be dismantled first.
Broadening the land ownership base makes agricultural development more quickly and easily felt by the majority.
1.3
The argument that large farms are more efficient than small farms is usually invoked by those who own export and cash crop plantations as an excuse to exclude their
landholdings from agrarian reform. The issue can be answered by examining whether economies of scale do exist. A study made on coconut and other tree crops did not
show any increasing yield per hectare as farm siz e increases. In the case of sugar, another study has shown that average production cost per hectare, in here,ci iee to ot
Why don't we just distribute public and government-owned lands? Why are we covering the private farms which are productive?
Productive private lands are covered under agrarian reform for various reasons. These include:
a.
Public and government- owned lands already have occupants and claimants. The sheer extent of landlessness makes coverage of private lands inevitable;
b.
One of the pillars of agrarian reform is the principle that the tiller of the land has the primacy of the right to own it;
c.
It is in productive private lands, particularly where the necessary investments have been made, where the beneficiary has greatest chances of success.
1.5
No, although it is a step in the right direction. The country has too many problems. But attempts to solve them will not yield sustainable results unless the root cause is
addressed inequitable distribution of resources. Since the Philippines is basically an agricultural country, land is the most important resource. By addressing the problem of
inequitable distribution of the land, agrarian reform is a major step towards resolving the country's problems.
Is agrarian reform an anti-insurgency tool?
No, agrarian reform is not being carried out to solve the insurgency problem. However, agrarian reform answers the clamor for social justice and the upliftment of the socioeconomic status of the landless. It provides a peaceful means for radical social change and liberation from poverty.
CHAPTER 2
COMPREHENSIVE AGRARIAN REFORM PROGRAM
What is the constitutional mandate for agrarian reform?
Agrarian reform derives its mandate from basic principles enshrined in the Constitution. The Philippine Constitutions of 1935, 1973 and 1987 all attest to this.
The 1935 Constitution mandated a policy of social justice to insure the well- being and economic security of the people.
The 1973 Constitution provided that "The State shall formulate and implement an agrarian reform program aimed at emancipating the tenant from the bondage of the soil."
The 1987 Constitution contains more specific provisions on agrarian reform.
Article II, Declaration of Principles and State Policies, Section 21 "The State shall promote comprehensive rural development and agrarian reform."
Article XII, National Economy and Patrimony, Section 21 "The State shall promote industrialization and full employment based on sound agricultural development and agrarian
reform, . . ."
Article XIII, Social Justice and Human Rights, Section 4 "The State shall, by law, undertake an agrarian reform program 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 ."
"The State shall encourage and undertake the just distribution of all agricultural lands, subject to such priorities and reasonable retention limits as the Congress may prescribe,
taking into account ecological, development or equity considerations, and subject to the payment of just compensation.
"In determining the retention limits, the State shall respect the right of small landowners. The State shall further provide incentives for voluntary landsharing."
Article XIII, Section 6
"The State shall apply the principles of agrarian reform, whenever applicable in accordance with law."
What presidential issuances and legislations provide the legal mandate for the Comprehensive Agrarian Reform Program?
Various administrations, from the Commonwealth to the Philippine Republic have issued decrees and passed legislations on agrarian reform.
Under the previous administration, Proclamation No. 131 and Executive Order No. 229, both dated 22 July 1987 were issued when then President Coraz on C. Aquino still
exercised legislative powers. These instituted the Comprehensive Agrarian Reform Program (CARP) and provided the mechanism for its implementation.
Republic Act No
. 6657: An Act Instituting a Comprehensive Agrarian Reform Program to Promote Social Justice and Industrialization, Providing the Mechanisms for its Implementation and/or other
Purposes, was subsequently passed by Congress, signed into law on 10 June 1988 and became effective on 15 June 1988. This is now known as the Comprehensive Agrarian
Reform Law (CARL) of 1988. (By tradition, the anniversary of CARP is commemorated on this date).
CHAPTER 3
CARP COVERAGE
3.1
CARP SCOPE
What is the scope of CARP?
The ownership or control of about 10.3 million hectares 1 of agricultural land, representing about one- third of the total land area of the Philippines shall be transferred over
a ten- year period to an estimated 3.9 million beneficiaries.
all alienable and disposable lands of the public domain devoted to or suitable to agriculture;
b.
all lands of the public domain in excess of the specific limits as determined by Congress;
c.
all other lands owned by the government devoted to or suitable to agriculture; and
d.
all private lands devoted to or suitable to agriculture regardless of the agricultural products raised or that can be raised therein. (Section 4 RA 6657)
Other major issuances on CARP are:
3.2
IMPLEMENTATION SCHEDULE
When are these lands covered?
All lands within the scope of CARP have been covered by the program beginning 15 June 1988, the date of CARP's effectivity.
However, in consideration of the capacity of the Government to implement the program, the acquisition and distribution of agricultural lands covered by the program have
been prioritiz ed as follows:
Phase I
This started immediately upon effectivity of the law and is programmed to be completed within four years (1988- 1992)
idle or abandoned;
voluntarily offered;
Phase II
This also started in 1988 and is programmed to be completed in four years (1988- 1992).
all public agricultural lands which are to be opened for new development and resettlement; and
private agricultural lands with areas above 50 hectares in so far as the excess over 50 hectares is concerned
Phase III-A
This started on the fourth year and is programmed completed within three years (1992- 1995)
*
private agricultural lands with areas from 24 to 50 hectares, in so far as the excess over the retention limit.
Phase III-B
This is programmed to start on the sixth year and to be completed within four years (1994- 1998)
*
private agricultural lands with areas above the retention limit up to 24 hectares
Public lands and other lands owned by the government and government- owned or controlled corporations which are leased and operated by multinational corporations or
associations were programmed for immediate acquisition and distribution right after the effectivity of the law for completion within three years (1988- 1991). (Sections 6 and 8, RA
6657)
Does the order of priority mean that all areas under Phase II must first be acquired and distributed before those in Phase III can be covered?
Strictly speaking, no. Starting 15 June 1994, Phase III- B lands can already be acquired and distributed even if not all Phase II lands have been covered. However, given
DAR's backlog in covering even those private agricultural lands 50 hectares and above, and the backlog in voluntary offer to sell, for practical purposes, priority should be
given to the completion of backlog in the earlier phases.
Given such phasing, how many hectares can now (1994) be acquired if a landowner's property has an area of?
a.
35 has.
b.
65 has.
c.
15 has.
*
*
if there is a backlog, unless voluntarily offered, it is advised that this land not be covered yet. Instead, give priority to the completion of the backlog.
This example considers only the landowner's retention right but does not take into account the award to qualified children.
The opinion of some that in the case of (a) in the example, only 16 hectares can be compulsorily acquired (40 less 24 has.) has been taken by DAR to have no legal
basis. This has been clarified under Memorandum Circular No. 4, Series of 1993.
CHAPTER 4
EXEMPTIONS AND EXCLUSIONS
4.1. EXCLUSIONS
What lands are not covered by CARP?
The following lands are not covered by CARP:
a.
those which are not suitable for agriculture, and those which are classified as mineral, forest, residential, commercial or industrial land;
b.
those which have been classified and approved as non- agricultural prior to 15 June 1988 as ruled under Department of Justice Opinion No. 44, Series of 1990;
c.
d.
those which are devoted to poultry, swine, or livestock raising as of June 15, 1988 pursuant to the Supreme Court ruling on Luz Farms vs. The Honorable Secretary of
Agrarian Reform (G.R. No. 86889, 4 December 1990); and
e.
those which are retained by the landowner (not covered insofar as land acquisition and distribution but covered with respect to other provisions, particularly leasehold).
Are all agricultural lands devoted to livestock, poultry and swine raising now automatically excluded from
CARP coverage?
No. To qualify for exclusion, the following requirements must be met:
1.
The land or portions thereof must have been exclusively, directly and actually used for
livestock, poultry and swine raising as of 15 June 1988.
2.
The farm devoted to the above purposes must satisfy the animal/land ratio, as well as
animal/infrastructure ratio as provided for in Section III- B of Administrative Order No. 09, Series of 1993
entitled "Rules and Regulations Governing the Exclusion of Agricultural Lands Used for Livestock,
Poultry and Swine Raising from the Coverage of CARP".
Can a landowner now convert his crop land to a poultry farm and then apply for exclusion from CARP?
No, as stated in AO 03- 93, the land must already be devoted to livestock, poultry and swine raising as of 15 June 1988. Nevertheless, the landowner who wishes to convert his
crop land for this purpose must apply for conversion, the processing of which shall be governed by AO Nos. 1 and 2, Series of 1990. Among other requirements, there should
be:
1.
the consent of agrarian reform beneficiaries and/or their waiver of rights; and,
2.
certification from the Regional Director of the Department of Agriculture that the poultry, livestock or swine project is of greater economic value than the present
agricultural use.
Conversion of the crop land without the benefit of conversion approval will be construed as an intent to avoid application of RA 6657 and shall be considered as invalid and
illegal. The land will be covered under CARP without prejudice to the filing of charges against the landowner.
Suppose a landowner has been granted exclusion from CARP for his landholding devoted to livestock raising but subsequently, he/she stopped its operations and went into crop
production, can the land still be subject to CARP?
Yes, the area or portion no longer used for livestock raising purpose shall automatically revert to the category of agricultural land and shall be covered by CARP.
What are the procedures in applying for exclusion of a landholding devoted to livestock, poultry and swine raising?
1.
Landowner files the application for exclusion with the DAR Provincial Agrarian Reform Office, together with the documentary requirements;
2.
The PARO, with the assistance of the BARC, the MARO, the Municipal Livestock Inspector, and a livestock/poultry and swine specialist of the DA shall conduct a field
investigation, and prepare report of findings and recommendations for submission to the Regional Director.
3.
Regional Director undertakes final review and evaluation of the application and issues the Order of Exclusion or Denial.
4.2
EXEMPTIONS
Lands with eighteen percent (18%) slope and over, except those already developed as of 15 June 1988. (Sec. 10, RA 6657)
A landowner was granted exemption because his agricultural land was found to be a qualified private research
center for corn breeding. Subsequently, he gave up his breeding operations and went into commercial
production of feed grains. May the landholding be covered?
Yes. For the exemption to continue, the reason for which the exemption was granted must continue to
exist.
A parcel of land cultivated by farmers is found to be within a forest reserve. May it be immediately covered by
DAR under CARP?
No. Coverage while possible, will have to wait until Congress, taking into account ecological,
developmental and equity considerations, shall have determined by law the specific limits of the public
domain. Thereafter, a reclassification of the said areas as alienable and disposable land will also have to
be done. (Sec. 4, RA 6657)
Why are lands with 18% slope and undeveloped exempt from CARP coverage?
The exemption is specifically mentioned in Section 10, RA 6657 and is based on the Forestry Code which provides that such lands should not be disposed of and developed
for agriculture because this type of land is highly susceptible to soil erosion. The principle is debated in the light of cultural practices which could make the preservation of the
ecological balance in such areas feasible. However, until and unless the laws are changed, such lands are not covered by CARP.
Since lands 18% slope or over if developed are not exempt from CARP, can DAR subject these lands to
acquisition and distribution?
Such lands can be allocated to qualified occupants but the manner of acquisition and distribution depends
on the following:
1.
If classified as forest land, they shall be allocated by the DENR under the Integrated Social
Forestry Program;
2.
If classified as alienable and disposable, they shall be allocated by DENR and DAR pursuant to
the provisions of the Public Land Act and the Joint DAR- DENR AO No. 2, Series of 1988; and
3.
6657.
If private agricultural land, then, they shall be acquired in accordance with the provisions of RA
What are the procedures followed in securing exemption of lands under Sec. 10 of RA 6657 from CARP coverage?
The person/s or representative/s owning, administering or managing the landholdings may file for exemption of the lands from CARP coverage at the Municipal Agrarian
Reform Office.
1.
The MARO shall prepare an Application for Land Exemption Folder (ALEF) which contains the
following documents:
*
written application
*
copy of proclamation, topographic map, sketch map, area development plan, affidavit,
certification from government agency, etc.
2.
MARO conducts investigation of the land with the assistance of the BARC and prepares report of
findings and recommendations and forwards them together with the ALEF to the Provincial Agrarian
Reform Officer.
3.
The PARO reviews and evaluates the ALEF and prepares comments, findings and
recommendations. If all documents are in order, forwards them to the Regional Director.
4.
The RD reviews and evaluates the ALEF and the findings and recommendations of the PARO and the MARO. If documents are in order, issues an Order of Approval or
Order of Denial. This applies to applications for exemption for all land siz es.
5.
The RD forwards the Order to the PARO for distribution to the contending parties and counsel, if any, copy furnished the Office of the Secretary, Undersecretary for
Field Operations, Legal Affairs Office and the Management Information Service within 15 days from the release of the Order. The Order becomes final 15 days from receipt of
the same, unless an appeal is made to the DAR Secretary.
6.
In case of denial of the application, DAR shall cause the acquisition and distribution of the property.
What is the recourse of a party who disagrees with the decision of the Regional Director?
Any party who disagrees with the RD's decision may file a written motion for reconsideration within 15 days from receipt of the Order. The RD shall then rule on the motion for
reconsideration. Should the motion for reconsideration be deemed, the aggrieved party could appeal to the DAR Secretary within the balance of the 15 day period. The
Secretary shall render a decision within 30 days after receipt of the appeal.
4.4
What are the procedures for the issuance of exemption clearances based on DOJ Opinion No. 44?
1.
The landowner or his duly authoriz ed representative files the application for exemption with the Regional Office of the DAR where the land is located. The application
should be accompanied by the following documents:
a.
duly notariz ed Special Power of Attorney, if the applicant is not the landowner himself;
b.
certified true copies of the list of the land which is the subject of the application;
c.
d.
e.
certification from the Deputiz ed Zoning Administration that the land has been reclassified to residential, industrial or commercial use prior to 15 June 1988;
f.
certification from the HLRB that the pertinent z oning ordinance has been approved by the Board prior to 15 June 1988;
g.
certification from the National Irrigation Administration that the land is not covered by AO No. 20, Series of 1992, i.e., that the area is not irrigated, nor scheduled for
irrigation rehabilitation nor irrigable with firm funding commitment, and
h.
proof of payment of disturbance compensation, if the area is presently being occupied by farmers, or waiver/undertaking by the occupants that they will vacate the
area whenever required.
2.
The Regional Office conducts joint investigation with the duly authoriz ed representatives of the DAR provincial and municipal offices that have jurisdiction over the
property, and a report prepared within thirty (30) days from the filing of completed application.
The joint investigation report shall contain information on:
a.
b.
c.
d.
certification from the MARO on whether or not the land has been placed under PD 27 or whether a CLOA or EP has been issued over said property.
3.
The investigation report is submitted to the Regional Director who prepared the Order for Denial or Grant of the Exemption Clearance not later than fifteen (15) days
from the receipt of the report. IaEScC
4.
The exemption folder, together with the draft order is forwarded to the Legal Affairs Office of the DAR Central Office which shall review the same and upon proper
review forwards the folder to the Office of the Secretary not later than fifteen (15) days from receipt of the folder.
5.
The Secretary signs the Order for Denial or Grant and a copy of the order is furnished to the Land Use Conversion Committee for purposes of monitoring and statistical
information.
CHAPTER 5
LAND ACQUISITION
5.1
b.
c.
d.
e.
f.
g.
That the land is privately owned and found suitable for agriculture;
b.
That there are beneficiaries willing to take over the ownership of the land and make it productive;
c.
That the landowner is paid just compensation; or a trust deposit is made in his/her name if the
value is contested; and
d.
That title to the land is transferred in the name of the Republic of the Philippines.
However, full payment of just compensation and transfer of title to the Republic of the Philippines are not
requisites in VLT/DPS. Moreover, under EO 407, the payment of just compensation to the government
instrumentality as landowner may come even after land distribution.
5.2
MODES OF ACQUISITION
What are the modes of acquiring lands for distribution under CARP?
Private agricultural lands covered by CARP are acquired through any of the following modes:
a.
b.
c.
d.
OLT is governed by PD 27 and EO 228 and has been in operation since 1972. It follows a different set of procedures, particularly in land valuation.
b.
Land acquisition under OLT and CA is done through the mandate of the law whether or not the landowner disagrees to part with his property.
c.
CA follows the schedule of CARP implementation based on the area of the landowner's landholdings. In contrast VOS may be done even for lands not yet scheduled
by law to be acquired.
d.
EO 407 as amended pertains only to government agencies as landowners in a propriety capacity, or to public A & D lands under their administration by virtue of
presidential proclamation.
e.
VLT/DPS, on the other hand, is a voluntary arrangement entered into by a landowner and a qualified farmer- beneficiary to directly transfer the land to the beneficiary
under terms and conditions mutually agreed by them but with payment terms not less favorable to the farmer than if it were the government purchasing the land and transferring
it to the beneficiary.
5.2.1 COMPULSORY ACQUISITION
What are the existing administrative orders on compulsory acquisition of lands?
a.
Administrative Order No. 11, Series of 1994 Revising the Rules and Regulations Covering the
Valuation of Lands Voluntarily Offered or Compulsorily Acquired as Embodied in Administrative Order No.
06, Series of 1992;
b.
Administrative Order No. 01, Series of 1993 An Order Amending Certain Provisions of
Administrative Order No. 09, Series of 1990, entitled "Revised Rules Governing the Acquisition of
Agricultural Lands subject to Voluntary Offer to Sell and Compulsory Acquisition Pursuant to RA 6657"
c.
Administrative Order No. 12, Series of 1990 Policy Guidelines and Operating Procedures in
the Identification and Acquisition of Idle and Abandoned Lands.
What lands are covered by compulsory acquisition?
Except in the case of tenanted rice and corn lands under PD 27, which are acquired following a different
set of rules, compulsory acquisition (CA) is done for all private agricultural lands which become due for
coverage following the phasing of implementation earlier discussed. However, CA is suspended in those
cases where the landowners opt for other modes of compliance, e.g., voluntary land transfer or stock distribution option. CA is resumed once the negotiations in these other
modes fail.
Compulsory acquisition is also done in idle and abandoned lands regardless of their siz e and phasing, and in lands whose commercial farm deferment is revoked.
What are idle or abandoned lands?
Idle or abandoned lands refer to agricultural lands 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 government as provided under RA 6657. They do not, however, include the following:
a.
those that have become permanently or regularly devoted to non- agricultural purposes;
b.
those that have become unproductive by reason of force majeure or any other fortuitous event, provided that prior to such event, such land was previously used for
agricultural or other economic purpose. (Section 3, RA 6657)
Can the DAR compulsorily acquire a landholding whose ownership is under litigation or judicial proceedings?
Yes, if it is clear that no matter what the outcome of the litigation may be, the land is still covered under CARP. In such case, the DAR shall select the retained area and the
compensation for the land shall be held in trust pending the resolution of the disputes.
However, if one or both of the parties to the case are groups of individuals, the hectarage involved in the possible exercise of the right of retention should be considered in the
acquisition of the land.
However, in the case of PCGG/APT acquired assets whose ownership is contested in court, the DAR and the PCGG have an understanding that a proper motion will be filed
in court to allow DAR to acquire such property, even pending litigation.
What if the person who is declared by the court as the lawful owner subsequently disagrees with the area chosen by DAR for retention? What if he has exercised retention in another
property?
The CLOA could be amended by the DAR or the landowner filing a petition with the DARAB. However, if the landowner is no longer entitled to retention, then the area
previously set aside for retention may also be covered.
A couple owning only 30 hectares died in January 1988 leaving as heirs six children with ages ranging 25-40. No partition of the property has been done and the children do not own
other agricultural lands. How many hectares may be compulsorily acquired?
None. Even if the title is still in the name of the couple, ownership automatically transferred to the children upon their parent's death. The six children are already the owners.
Thus, at five hectare retention per landowner, the entire 30 hectares may be retained.
AO- 01, Series of 1989 allows the registration of a deed of extra- judicial partition of the property of a deceased who died prior to 15 June 1988.
Note, however, that if the parents died after 15 June 1988, the land may be entirely acquired and distributed if the children are neither actual tillers or direct farm managers. If they
are, they will each be entitled to an award of three (3) hectares. Otherwise, they will only be entitled to the compensation for the land. But the land will be acquired and
distributed under CARP. Moreover, the DAR and the ROD will no longer allow the partition of the property except in favor of the qualified farmer- beneficiaries. This is in line with
the fact that as of 15 June 1988, by operation of the law, all lands in excess of the retention limit are already covered by CARP.
If in the course of CARP coverage, the owner alleges that the land is exempted under Sec. 10, RA 6657, what should you do?
Exception under Section 10 of RA 6657 is not automatic. Under AO- 13, Series of 1990, persons or representatives of persons owning, administering or managing lands
believed to be actually, directly and exclusively used and are necessary for any of the purposes under Section 10 should file a written application with DAR. This application
should be approved by the Regional Director.
The MARO should, therefore, check if an application has been filed and if the application has been duly approved. Otherwise, the MARO should treat the matter as a CARP
protest and let the Regional Director rule on the matter. (AO-09, series of 1994).
If in the course of coverage, the owner alleges that the property is already reclassified as residential since 1986, what should you do?
The MARO should determine if the property is covered by DOJ Opinion No. 44 and whether an application for exemption has been filed by the landowner. He should also
investigate the actual land use and whether the land is irrigated, irrigable or is programmed for irrigation. He should also check the z oning plan or municipal/city ordinance
approved by the HLURB. Only if it is clear that the said landholding does not fall within any of the above, should the MARO proceed with the acquisition of the property.
If in the course of coverage, the owner alleges that about one year before the notice of acquisition, he has filed an application for conversion, what should you do?
The MARO should check the allegation, i.e., whether there really was an application for conversion filed a year ago. If there is none, conversion is not possible because the
notice of acquisition has already been issued. If there is, the issue of conversion should first be resolved.
5.2.2 VOLUNTARY OFFER TO SELL (VOS)
What is the VOS scheme?
VOS is a scheme wherein landowners come forward and voluntarily offer their agricultural lands for coverage regardless of the phasing. The DAR encourages this mode
because VOS generally ensures the cooperation of the landowners.
Agricultural Lands Subject to Voluntary Offer to Sell and Compulsory Acquisition Pursuant to RA 6657";
c.
Administrative Order No. 05, Series of 1992 Clarificatory Guidelines and Amendments to AO
No. 09, Series of 1990.
Where should the landowner file the application for VOS?
Application for VOS can be filed either at the Central Office, or at any field office of DAR. However, the receiving office should forward the application to the MARO of the
municipality where the land is located.
What incentives are given to landowners who offer their lands under VOS?
The cash portion of the compensation to the landowner is increased by five percent (5%), while the LBP bond portion is correspondingly decreased by five percent. However,
this incentive is not available to banks and other financial institutions.
It should be noted that the total compensation is not increased, only the proportion of the cash component.
May an agricultural land which has been mortgaged also be voluntarily offered under CARP?
Yes. In this case, the MARO should secure a statement of account from the creditor and recommend the settlement of the obligation through payment in LBP bonds.
Can government financial institutions voluntarily offer foreclosed but redeemable properties which are not yet transferred to them?
No. The GFIs have to wait for the expiration of the redemption period.
Are landowners allowed to withdraw lands offered under the VOS scheme?
No. The exceptions are the instances provided in Administrative Order No. 05, Series of 1992, namely:
a.
If the subject landholding is part of the landowner's retained area, provided the landowner has not yet received any payment;
b.
If the landowner wants to shift the mode of acquisition from VOS to VLT/DPS;
c.
If the offered land is to be covered in 1994 and the landowner wants to wait for the compulsory coverage under Phase III- B. If the Notice of Valuation has been served,
however, the withdrawal may no longer be allowed.
d.
If the DAR determines the landholding to be more suitable for a town site, resettlement or institutional site to address a calamity F
nyy
Other Lands of the Public Domain Suitable for Agriculture" directs all government instrumentalities, including government financial institutions (GFIs) and government- owned or
controlled corporations (GOCCs) to immediately transfer to DAR all their landholdings suitable for agriculture for immediate distribution to qualified beneficiaries under CARP.
EO 407 is a concrete act of the Government to divest itself of its agricultural landholdings as an example for private landowners to follow. Moreover, inasmuch as the
landowners involved are also Government agencies, EO 407 has facilitated the acquisition by the DAR of thousands of hectares of agricultural lands for distribution under
CARP.
EO 407 covers the following:
*
all agricultural lands owned or controlled by government departments, agencies or instrumentalities, including lands foreclosed by government financing institutions;
*
lands covered by cancelled or expired Timber License Agreements (TLAs) and Pasture Lease Agreements (PLAs) for redistribution by the DENR, in coordination with
the DAR, to qualified ARBs identified by the DAR; and
*
lands covered by cancelled or expired Fishpond Lease Agreements (FLAs) for redistribution by the Department of Agriculture (DA), in coordination with the DAR to
qualified ARBs identified by the DAR.
EO 448 included within the coverage of EO 407 all reservations or portions thereof, which are suitable for agriculture and are no longer needed for the purpose for which they
were established.
EO 506, however, further amended EO 407 to exclude:
*
all existing and proposed national parks, game refuge, bird sanctuaries wildlife reserves, wilderness areas and other protected areas, including old growth or virgin forests and
all forests above 1,000 meters elevation or above 50 percent slope until such time that they are segregated for agricultural purposes or retained under the National Integrated
Protected Areas System (NIPAS) of DENR.
5.4
a.
b.
Land survey;
c.
d.
e.
What are the changes in procedures for land acquisition contained in AO-01, Series of 1993?
a.
The number of steps has been reduced by transferring from the DAR Regional Office to the
Provincial Office the review and completion of documents before submission of the claim folder to
the Land Bank of the Philippines.
b.
The conduct of the field investigation can proceed even if the LBP representative is unavailable. This was made possible by dividing the Field Investigation Report
into two parts. Part I contains data on the landholding and its suitability to agriculture. Part II, on the other hand, provides data inputs for the determination of the land valuation.
Part I can be accomplished even without the presence of the LBP representative although the data are subject to review by LBP.
c.
The conduct of public hearing was deleted. In lieu thereof, the Notice of Coverage, Field Investigation Report and the Notice of Land Acquisition and Valuation shall be
posted for a period of one week on the bulletin boards of the barangay/municipal/provincial halls where the property is located.
d.
e.
The acquisition process has been facilitated by requiring the LBP to immediately open a trust account in the name of the landowner, whether the landowner accepts or
rejects the land valuation. Actual release, however, shall be effected only after the landowner's compliance of all the requirements.
What is the first step in land acquisition?
Land acquisition, regardless of the mode, begins with the identification of landowners, landholdings and beneficiaries covered by CARP.
Under the Land Acquisition and Distribution Tracking System (LADTRACKS) and the CARP Scope Validation project, field offices have been tasked to prepare a master list or
inventory of landholdings in their area of coverage. This inventory is derived from the LISTASAKA statements, as verified or complemented by the records of the Register of
Deeds and Assessor's Offices, review of the municipal town plan and z oning ordinances, field surveys, interview and community consultations, and general knowledge of the
land ownership pattern in the barangays or municipalities.
With these basic tools, the landowners who own agricultural lands in excess of the retention limit may be easily determined and their lands classified according to the
implementation phase or order of priority of CARP.
5.5
What are the criteria for prioritizing the coverage of landholdings in the master list?
Quality land distribution cannot be overemphasiz ed. More than just meeting the targets, land distribution should be done with the end in mind of uplifting the farmer
beneficiaries' living condition. Priority should, therefore, be given to areas where success of beneficiaries development is paramount. The following should be the basic
considerations in the prioritiz ation of covered areas:
a.
b.
Level of organiz ation of the farmers Consistent with the people- centered development thrust of the DAR, the higher the level of organiz ation of farmers, the greater
should be the priority. This will not only facilitate the land acquisition and distribution process but also hasten the development of viable agrarian reform communities in the
area;
c.
Incidence of agrarian unrest The greater the incidence of unrest, the higher should be the priority to promote the resolution of the agrarian disputes. Utmost care
should however, be made to ensure that the landholding is indeed covered by CARP;
d.
Number of farmers to be benefitted The higher the number, the greater should be the priority, again in line with people- centered development;
e.
Siz e of the landholding Inasmuch as nearly the same efforts will have to be expended for either big or small landholdings, it makes sense to put higher priority on
the larger landholding;
f.
Presence of support factors Areas with cooperative landowners, supportive community leaders and local government executives, active BARCs and POs/NGOs,
etc. should receive higher priority because it is in these areas where agrarian reform implementation will have greater chances of success;
g.
Presence of a title over the property Titled properties are easier to acquire because, as it is the norm under our Torren's Title System, the title is the strongest proof
of the land ownership. Untitled properties require much more difficult documentation to ensure that the land actually exists and that the current landowner is being addressed.
Thus, all other considerations being equal, titled properties should receive higher priority. ScaHDT
5.6
RECONSTITUTION OF TITLE
What can be done in case the original title of the land got lost or was destroyed due to fire, flood or force majeure in the register of deeds?
In general, lost or destroyed original copies of certificates of title are reconstituted through judicial proceedings pursuant to Section 110 of the Property Registration Decree (PD
No. 1529). The procedure is prescribed in Republic Act No. 26 and implemented in LRA Circular No. 35 dated 13 June 1983.
However, RA 6732 as implemented by LRA Circular No. 13 dated 26 July 1989, allows for administrative reconstitution when the original copies of the certificates of title in the
Office of the Register of Deeds are destroyed due to fire, flood, or other force majeure as determined by the LRA administrator, where the destroyed records constitute at least
ten percent (10%) of the total number of titles but in no case shall these be less than 500. Thus, administrative reconstitution is allowed in Batangas City, Malolos, Bulacan, and
in the provinces of Eastern Samar, Camarines Sur, Isabela, and Oriental Mindoro where the Offices of the Register of Deeds were destroyed by fire.
The law also covers administrative reconstitution of copies of original certificates of title destroyed by fire, flood or other force majeure which occurred fifteen years before its
effectivity in 1989.
What if it is the owner's duplicate copy which is lost while the original is still on file?
Then a petition for the issuance of a new owner's duplicate copy shall be filed with the Regional Trial Court. (Sec. 109, PD 1529)
Who should file the petition for reconstitution of title?
LRA Circular No. 35, Series of 1983 provides that the landowner or an interested party should file a petition for reconstitution with the Clerk of Court of the Regional Trial Court
having jurisdiction of said property, in case of judicial reconstitution; or with the Register of Deeds concerned, in the case of administrative reconstitution.
However, in order not to delay acquisition and distribution, the DAR issued Memorandum Circular No. 05, Series of 1994 which provides that the duly authoriz ed DAR lawyer
can file the petition in the Regional Trial Court in case of judicial reconstitution, or with the Register of Deeds concerned in case of administrative reconstitution, provided that a
Notice of Coverage has already been issued covering the property. However, the DAR shall endeavor to secure a written permission from the registered owner/s of lost or
destroyed titles.
What are the procedures for judicial reconstitution?
1.
The petition is filed with the Clerk of Court of the Regional Trial Court which has jurisdiction over the property. Such petition is accompanied by a plan and technical
description of the subject land, and a certification from the ROD that the original copy of the title was burned, lost, mutilated, etc. Photocopies of the Notice of Coverage shall
also be submitted if the DAR is the petitioner.
2.
The Office of the Solicitor General, Office of the Prosecutor for the City or Province, DENR- LMB, LRA, and ROD concerned are furnished with copies of the petition.
3.
Publication (twice) in the Official Gaz ette and posting in the bulletin boards of the respective municipality of the notice of initial hearing. Adjoining owners and interested
parties are also furnished copies of the notice.
4.
5.
6.
7.
Reconstitution proper of a new Original and Owner's Duplicate Certificate of Title by the ROD.
3.
4.
5.
Review by the LRA Administrator of the Order of Reconstitution and affirmation thereof, if proper;
6.
Surrender of the Owner's or Co- Owner's duplicate Certificate of Title to the ROD; and
7.
Issuance of reconstituted title and delivery of owner's or co- owner's duplicate Certificate of Title by the ROD concerned to the landowners or to DAR.
Certified copy of the present Tax Declaration in the name of claimant with correct lot number/s and area per approved plan;
3.
Instruments of acquisition covering the subject property, such as Deed of Sale, Donation, Transfer, etc. in favor of claimant and those of his/her predecessor/s interest;
4.
Certification of the Assessor concerned showing the Tax Declaration issued, the declarant/s, the area covered, and the basis for the issuances and cancellations
thereof pertaining to the property/ies from the first declaration up to the tax declaration issued in the name of the claimant;
5.
Certification from the Clerk of Court concerned whether or not the property/ies identified in the plan is/are covered by land registration proceedings or civil case, and if
the same is used as bond or bail in other court actions;
6.
Certificates of the DENR- LMS stating the year the property/ies identified in the plan may already be considered as private agricultural land, and the persons having the
best claim of ownership thereof; and
7.
Certification from the Office of the Register of Deeds and Assessor concerned to the effect that as per their records, the property/ies as appearing in the approved
FIELD INVESTIGATION
How will the landowner know that his or her land is being covered by CARP?
A landowner who has been identified should be notified by the MARO that his or her landholding is now
covered by issuing a Notice of Coverage personally delivered or sent by registered mail. In that Notice, the
landowner is also informed of his or her right to select the retained area and of the field investigation which
will be conducted on the landholding.
A copy of the Notice shall also be posted for at least one week on the bulletin board of the municipal and
barangay halls where the land is located.
After identifying and documenting the ownership of the land, what must be done next?
The suitability of the land covered under CARP should next be established. This is done primarily by
undertaking the field investigation of the property to ascertain its suitability, productivity, and tenurial
characteristics.
Who are involved in the field investigation?
Aside from the MARO or ARPT and the landowner concerned, representatives from the Department of Environment and Natural Resources (DENR), Department of Agriculture
(DA) and Land Bank of the Philippines (LBP), as well as the BARC and prospective agrarian reform beneficiaries should be invited to participate in the conduct of the field
investigation.
What if the invited representatives are not available?
The field investigation can proceed provided they were given due notice of the time and date of the investigation to be conducted, i.e., they were sent copies of Notice of
Conduct of Field Investigation. If it is the LBP representative who is not available, the DAR field implementor(s), together with the other parties shall conduct the field
investigation and accomplish Part I of the Field Investigation Report. Such report shall be forwarded to the LBP representative for validation.
What if there is a difference in the findings of the DAR and the LBP?
In the event that there is a difference or variance in the findings of the DAR and the LBP as to the propriety of coverings the land under CARP, whether in whole or in part, on the
issue of suitability to agriculture, degree of development or slope, and on the issue affecting idle lands, the conflict shall be resolved by a composite team composed of DAR,
DA, DENR, and LBP representatives which shall jointly conduct further investigation thereon. The team shall submit its written report of findings within five days from the
conclusion of the inspection. Such findings shall be binding to both DAR and LBP pursuant to the Joint Memorandum Circular of the DAR, LBP, DENR, and DA dated 27
January 1992. If the issue involved is on the suitability to agriculture and its development, the chairperson shall be the DA representative. If it is on the percentage slope, the
DENR representative shall be the chairperson of the team.
Why must the BARC and prospective ARBs be involved in the field investigation?
It is important to involve not only the other concerned CARP implementing agencies but also the BARC and the prospective beneficiaries because the people from the locality
have a wealth of information on the physical, agricultural and tenurial characteristics of the land. It is also wise to involve them from the beginning to generate their support and
encourage their crucial participation in the development process.
CHAPTER 6
AGRARIAN REFORM BENEFICIARIES
6.1
QUALIFICATIONS OF BENEFICIARIES
be landless;
b.
be at least 15 years old or head of the family at the time the property was transferred in the name of the
Republic of the Philippines; and
c.
have the willingness, ability and aptitude to cultivate the land and make it as productive as possible. (Section
23, Republic Act No. 6657)
Items (b) and (c) above are meant to ensure that the recipients of the land will judiciously use it and make it a
productive agricultural land.
What is the definition of landless?
A landless person is defined by Section 25, RA 6657 as one who owns less than three (3) hectares of agricultural
land. Section 7, RA 6657 also provides that an owner- tiller may still be a beneficiary of another land he or 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 hectares.
Thus, a tenant who owns one hectare of agricultural land may still qualify as a beneficiary for two hectares of land.
Who are disqualified from becoming beneficiaries?
a.
Those who fail to meet the qualifications as provided for under Section 22 of RA 6657.
b.
c.
Beneficiaries whose lands have been foreclosed by the LBP or repossessed by the landowner (in the case of VLT/DPS) for non- payment of an aggregate of three
annual amortiz ations.
d.
6.2
Beneficiaries who have converted their land to non- agricultural use without prior approval by DAR.
ORDER OF PRIORITY
Qualified children. The qualified children of the landowner are the first group entitled to be beneficiaries of the land. They are entitled to receive three hectares each.
b.
Tenants and Lessees. The next group is composed of the agricultural lessees and share tenants. These farmers are entitled to receive the area of their tillage but not
to exceed three (3) hectares, he or she may be awarded an additional area representing the difference, subject to the availability of land.
c.
regular farmworkers;
seasonal farmworkers;
other farmworkers;
Given such order of priority, must all farmers in a class be allocated three hectares each before anyone in the next class can be identified as also a beneficiary of the land? For
example, all regular farmworkers must first be allocated three hectares before any seasonal farmworker can be identified?
Strictly speaking, that would be a correct interpretation.
The CARP, however, seeks to help as many farmers as possible and make them beneficiaries of the program. Thus, a more liberal interpretation is often better, provided the
economic viability of the award is not sacrificed. In this regard, a series of mediation conferences among the possible beneficiaries may be conducted to allow the
participatory determination of how many beneficiaries there ought to be and what each beneficiary will receive.
6.3
FARMWORKER BENEFICIARIES
SCREENING OF BENEFICIARIES
What can be done in case the tenants or tillers refuse to be interviewed and identified as beneficiaries?
The MARO and the BARC should advise the potential ARBs about the consequences of their refusal. If they still refuse, the MARO and BARC should execute a certification to
this effect and post it in conspicuous places for 30 days. Thereafter, new ARBs may be instituted. The MARO should, however, exercise great care under this situation. Refusal
to be identified as beneficiaries can be due to several reasons, such as lack of assurance of support services which used to be provided by the landowner, fear of the
landowner especially if the farmers are unorganiz ed. That is why, MAROs should not overlook the importance of social preparation activities prior to land distribution.
What can be done in case the occupants of an idle and abandoned agricultural land are found to have prematurely entered the landholding?
Premature entry is strongly discouraged. Should it happen, however, the first consideration should be whether the occupants are the qualified beneficiaries of the land, or
some other persons have superior rights to receive the land. In the latter case, the occupants should be ejected from the land and disqualified to be beneficiaries thereof.
The second consideration is whether or not the landowner consents or has no objections to the occupancy and under what terms and conditions. The landowner and the
occupants may agree on a lease arrangement in the meantime that acquisition of the land under CARP has not been completed.
On the other hand, what can be done if no one is willing to be a beneficiary of the land?
The DAR cannot yet acquire the agricultural land if it has no takers. The DAR must distribute all lands it acquires and is not in the business of warehousing land. What can be
done is note such lands with no takers and offer it to those who may later on be interested or those who could not be accommodated in the distribution of other areas.
What can be done if FBs have been erroneously identified but still their names have been entered and registered in the CLOAs?
If the CLOA is already registered with the ROD, then an appropriate exclusion proceeding could be filed with the DARAB. (AO-02, Series of 1994)
CHAPTER 7
LANDOWNERS' RETENTION AND AWARD TO CHILDREN
7.1
RETENTION LIMIT
What qualifications must the child of a landowner meet in order to qualify for a three-hectare award?
To qualify, the child of a landowner must be:
a.
At least fifteen years old as of 15 June 1988, the effectivity of RA 6657; and
b.
Actually tilling the land or directly managing the farm from 15 June 1988 up to the time of land
acquisition.
What is the meaning of the phrase "directly managing the farm"?
"Directly managing" refers to the cultivation of the land through personal supervision under the system of
labor administration. (DAR Memo Circular No. 04- 1994) It should be interpreted along the lines of farm
management as an actual major activity being performed by the landowner's child from which he or she derives income. Farm management should likewise be the child's
primary occupation.
If the land is tenanted, can a landowner's child qualify for an award on the basis of a claim that he is directly
managing the farm?
As of 15 June 1988, tenants on the land should have become lessees. As lessees, they have the obligation
to pay the lease rental but they have the right to directly manage the land. The child cannot, therefore, claim
that he is managing the land. Hence, he cannot qualify for an award.
What if the child meets the qualifications above but already owns ten hectares? Must he or she still be awarded
three hectares?
As earlier said, the child is to be awarded land not because he or she is a child of the landowner but
because he or she is a qualified beneficiary. (However, the preference comes from his or her being a child of
the landowner.) Therefore, in addition to the qualifications above, the child must meet all other requirements
to be a beneficiary. Not being landless, he or she does not qualify for an award.
If a landowner's child qualifies as preferred beneficiary, will Land Bank pay the landowner for the area to be
awarded to the child? In turn, will the child amortize the property?
No, the rules on landowner's compensation and amortiz ation by beneficiaries will not apply, except if the child awardee is a tenant in his/her own right. In which case, the Land
Bank will finance the acquisition. However, tenancy between the landowner and the child must have already been established prior to 15 June 1988. (Memo Circular No. 04,
Series of 1994)
7.5
PROCEDURES FOR THE EXERCISE OF THE RIGHT OF RETENTION AND AWARD TO QUALIFIED CHILDREN
Where should the landowner file the application for retention and award to qualified children?
The landowner should file the application using DAR's Retention Form No. 1 in any DAR office, whether at the Central, Regional, Provincial or Municipal Office. If filed in an
office other than the MARO where the landholding is located, the receiving office should forward the application to the MARO concerned.
What are the requirements in applying for retention or award to children?
The landowner should execute an affidavit as to the total area of his/her landholding. If applying for award to qualified children, the landowner should submit a list of his/her
children who were at least fifteen (15) years old as of 15 June 1988 and who have been actually cultivating or directly managing the farm.
What happens after the MARO receives the application for retention or award?
The MARO, with the assistance of the BARC shall conduct a field verification and investigation to:
1.
determine total landholding in relation to the retention and award applied for;
2.
in the case of homestead, to determine whether the original homestead grantee or the direct compulsory heirs still own and actually cultivate the homestead;
3.
determine qualifications of the applicants and their children applying for retention and/or award; and
4.
identify affected tenants and determine whether they opt to become lessees in the retained area or to become land transfer beneficiaries in another landholding.
The MARO then prepares the Retention Folder containing the documentation of the field investigation and the findings and recommendations. The folder is then submitted to
the PARO for review.
Who approves the application?
The Regional Director approves or disapproves the application after reviewing and evaluating the report and recommendations submitted by the Provincial Agrarian Reform
Officer (PARO).
What happens after the Regional Director has approved the application for retention?
1.
If the application for retention is approved, the Regional Director shall issue Certificate of Retention (Retention Form No. 3) and forward this, together with the retention
folder to the PARO.
2.
The PARO, in coordination with the Land Management Bureau of the DENR, shall segregate the appropriate retained area.
3.
The DENR shall furnish the DAR Regional Office four copies of the approved segregation plan and technical description.
4.
On the basis of the owner's duplicate copy of the title, the approved segregation plan and technical description, the PARO shall request the Register of Deeds to
prepare two separate titles all in the name of the landowner:
a.
for the landholding covered by compulsory acquisition, voluntary offer to sell or voluntary land transfer/direct payment scheme; and
b.
What is the recourse of the landowner whose application for retention is disapproved?
The landowner should make an appeal to the DAR Secretary within fifteen (15) days upon receipt of the decision. Otherwise, the decision by the Regional Director
disapproving the application for retention becomes final.
7.7
What is the obligation of the landowner with respect to his or her retained area?
The landowner has the obligation to cultivate the retained area directly or through labor administration in order to make it productive. This is in line with the CARP principle that
land has a social function and land ownership has a social responsibility. (AO No. 11, Series of 1990)
What are the limits to the disposition of the retained area?
1.
A landowner may sell the land even to one not qualified to be a beneficiary, provided th onfter the sale, the buyer will not own more th oSA
1.
The original homestead grantee or his/her direct compulsory heirs still own the land on 15 June 1988; and
2.
The original homestead grantee or his/her direct compulsory heirs cultivate the land as of 15 June 1988 and continue to cultivate the same.
In the absence of these conditions, the homestead land will not be exempted from OLT or CARP coverage. However, the grantee or the heirs can retain seven or five
hectares, as the case may be The excess areas shall be covered by CARP. The Alita Case, notwithstanding, it is the mandate of the law that in all cases, the security of
tenure of the farmers and farmworkers on the land shall be respected. cdtai
CHAPTER 8
LAND SURVEY
What should be done in the case of titles/landholdings covered by CARP but with defective technical descriptions or no available survey records?
The Provincial Agrarian Reform Officers (PAROs) should turn over to their counterpart Provincial Environment and Natural Resources Officers (PENROs) of DENR, all
titles/landholdings covered by CARP with defective technical descriptions or where no available survey records could be found. This is an agreement reached between the
DAR and DENR last 23 July 1992.
PAROs should immediately conduct an inventory of these records. If in spite of previous exhaustive
research conducted, the defect could not be remedied, then they should turnover the records (xerox
copies of titles, survey plans, sketch plans, etc.). The PENROs are under instructions to check these
records with the existing records available at the Land Management Bureau, the National Archives, or the
Land Registration Authority.
If, however, after another exhaustive research, the correct technical description cannot be recovered, then
a resurvey of the subject landholding will have to be executed as provided for in the Joint DAR- DENR
Circular No. 06, Series of 1991.
What sort of defects are covered by this agreement?
The defects may fall under any of the following categories:
1.
2.
3.
4.
Surveyed untitled private property but survey plan or technical description is not available;
5.
Awarded to survey contractor but not submitted due to non- payment of contractor;
6.
Surveyed by administration but not submitted in spite of request to submit the survey; and
7.
Other defects.
CHAPTER 9
LAND VALUATION AND LANDOWNERS' COMPENSATION
What is the basic requirement in the acquisition of private agricultural lands?
The Constitution itself provides landowners two basic rights the right to retention and the right to be paid just compensation. Payment of just compensation is required before
a title can be transferred from the landowner to the Republic of the Philippines.
What does the law provide as the factors to be considered in the valuation of lands under CARP?
Section 17, RA 6657 enumerates ten (10) factors to be considered in the determination of just compensation:
a.
cost of acquisition
b.
c.
d.
actual use
e.
income
f.
g.
tax declaration
h.
i.
the social and economic benefits contributed by the farmers and farmworkers and by the government
j.
non- payment of taxes or loans secured from any government financing institution on the land.
9.3
9.4
may still reject or not respond to this offer and instead file a case before the Special Agrarian Courts.
In the meantime that the landowner is contesting the valuation of the land or is not responding to the
Government's offer, the Government may proceed to distribute the property upon deposit in a trust
account of the initial value offered.
Where will the summary administrative proceedings be conducted? Will a landowner residing in Mindanao be required to go to the central office?
Not necessarily. It would depend on the total amount of compensation in question. If the government's offer does not exceed two million pesos (P2,000,000), the proceedings
shall be conducted by the Provincial Agrarian Reform Adjudicator concerned. If the compensation offered is more than two million pesos but does not exceed five million
(P5,000,000) then the case will be handled by the Regional Agrarian Reform Adjudicator (RARAD). But if the amount in question exceeds five million pesos, then the
proceedings shall be conducted by the DAR Adjudication Board (DARAB). (AO No. 08, Series of 1993)
Is the Adjudication Board's decision final and executory?
Although the final determination of the value of the land is a judicial function, unless the landowner or any party- in- interest files a case with the Special Agrarian Court within
fifteen (15) days from receipt of the decision, then the decision of the adjudicator/s becomes final and executory.
9.5
Are landowners and agrarian reform beneficiaries involved in the process of valuation?
Yes. The process of land valuation must involve the agrarian reform beneficiaries, their organiz ations, the BARC, and the landowner concerned. Their involvement is ensured
in various provisions of the law.
Section 3, EO 129- A declares that . . . "partnership between government and organization of farmers and farmworkers in agrarian reform policy formulation, program implementation
and evaluation shall be institutionalized. . . . "
Section 47, RA 6657 specifies that the BARC shall, among other things, "assist in initial determination of the value of the land".
Section 18, RA 6657 further states that "The LBP shall compensate the landowners in such amount as may be agreed upon by the landowner and the DAR and the LBE. . . "
9.6
MODES OF COMPENSATION
b.
Under Voluntary Offer to Sell, the landowner will be paid under the same mode as CA except that the cash portion is higher by five percent (5%).
What proportion of the total compensation is in cash?
Cash portion shall vary according to the siz e of the landholdings. The larger the landholding, the smaller the cash portion. The underlying principle is that small landowners
are presumed to have greater need for cash to aid them in their bid to shift their capital from agriculture to industry.
Payment shall be under the following terms and conditions:
a.
b.
c.
The new LBP bonds also bear market rates of interest the same as those of 91- day treasury bills. Old LBP bonds have a fixed six percent (6%) interest rate.
c.
Finally, these bonds have alternative uses. They may be used by the landowner, his successors in interest, or his assignees, for any of the following:
*
acquisition of land or other real properties of the government, including assets under the Asset Privatiz ation Trust, and other assets foreclosed by government financial
institutions;
*
acquisition of shares of stock of government owned or controlled corporations, or shares of stocks owned by the government in private corporations;
substitution for surety or bail bonds for the provisional release of accused persons, or for performance bonds;
*
security for loans with some government financial institutions, provided the proceeds are invested in an economic enterprise, preferably in a small- and- medium scale
industry;
*
payment for various taxes and fees to government, up to a certain percentage of the outstanding balance of the financial instrument, and provided further that the PARC
shall have determined the allowable percentage mentioned;
*
payment for tuition fees of the immediate family of the original landholder in government universities, colleges, trade schools, and other institutions;
*
9.8
government support price for one cavan of 50 kilos of palay on 21 October 1972
**
government support price for one cavan of 50 kilos of corn on 21 October 1972
Lease rentals paid to the landowner by the farmer- beneficiary after 21 October 1972 shall be considered as advance payment for the land and shall, therefore, be deducted
from the cost.
Aren't PD 27 lands grossly undervalued since 1972 support prices are still being used?
The Presidential Agrarian Reform Council (PARC) has recogniz ed this problem. Many of the landowners covered by PD 27 have not yet been paid. Had these landowners
been paid at the time of the taking of their lands and the proceeds of the compensation deposited in a bank, the money would have earned the same interest rate
compounded annually as authoriz ed under the banking laws, rules and regulations.
To address these problems, the PARC in its resolution dated 25 October 1994, approved the grant of an increment of six percent (6%) yearly interest compounded annually
based on the land value as determined under existing valuation formula, instead of revising the formula itself.
Guidelines for this have been issued under Administrative Order No. 13, Series of 1994, "Rules and Regulations Governing the Grant of Increment of Six Percent (6%) Yearly
Interest Compounded Annually on Lands Covered by Presidential Decree No. 27 and Executive Order No. 228".
Under these guidelines, owners of OLT lands shall be compensated based on the following:
(Computed land value using the original formula) x (1.06) n
where n = number of years from date of tenancy up to effectivity date.
Who are the landowners qualified to receive compensation based on this increment formula? IHTaCE
1.
Landowners whose lands are actually tenanted as of 21 October 1972 or thereafter and covered by OLT;
2.
Landowners who opted for Government financing through Land Bank of the Philippines as the mode of compensation; and
3.
Landowners who have not yet been paid for the value of their land.
In the case of landowners who were partially paid, the yearly interest of six percent (6%) compounded annually shall be applied to the unpaid balance.
What is the reckoning date in computing the interest?
For lands tenanted as of 21 October 1972 and covered under OLT, the date shall be reckoned from 21 October 1972 up to the date of effectivity of AO 13- 94.
For lands tenanted after 21 October 1972 and covered under OLT, the date shall be reckoned from the date when the land was actually tenanted up to the effectivity date of
AO 13- 94.
What will happen to the claims of landowner-payees which were previously approved for payment by Land Bank?
The landowners shall still be entitled to the difference.
What happens to the 25-years LBP bonds under PD 27?
All outstanding LBP bonds that are retained by the original landowner- payee, or by his heir, shall be paid by the Bank to the extent of their matured portion. One- twenty fifth
(1/25) of their face value times the number of years from their date of issue to July 17, 1988 (date of EO 228) are deemed to have matured.
How can the original landowner-payee claim payment for the matured portion of his/her bond holding?
He/she should surrender the old LBP bonds to Land Bank which pays cash for the matured portion and convert the unmatured portion to 10- year LBP bonds.
Are outstanding old LBP bonds in the hands of bondholders other than the original landowner-payee entitled to the same right?
No. Old LBP bonds in the hands of bondholders other than the original landowner- payee are not entitled to the same right.
9.9
EO 407 LANDS
Under this guideline, agricultural lands affected by Mt. Pinatubo eruptions have been classified into three
based on the NEDA Region III Geographic Information System database. These are:
Category I (actually affected)
These are agricultural lands actually covered with lahar and pyroclastic deposits, including those areas
which have become silted, eroded or continuously flooded for an indefinite period of time.
Category II (not yet affected)
These are agricultural lands not falling under Category I but have the possibility of being actually
affected.
Category III (lands covered by ashfall)
These are agricultural lands actually covered or affected by ashfall but which remain to be productive.
As a general rule, lands under Category III shall be acquired and landowners compensated. Compensation of lands under Category I and II shall be effected under the
following conditions:
1.
a.
Landowner has executed a Deed of Assignment, Warranty and Undertaking on or before the issuance of the Joint DAR- LBP AO 03- 94; or,
b.
Transfer Certificate of Title was already registered in the name of RP on or before the issuance of the same AO; or
c.
2.
LBP.
Emancipation Patents/Certificates of Land Ownership Award have been registered on or before 12 June 1991 regardless of whether or not the claim folder is with the
CHAPTER 10
LAND DISTRIBUTION
10.1 BASIC PRINCIPLES IN LAND DISTRIBUTION
What are the basic principles in land distribution?
Land distribution is governed by the following basic principles and policies:
a.
The CARP seeks to promote the establishment of owner- cultivatorship of economic- siz e farms as the basis of Philippine agriculture;
b.
DAR's primary mandate is to distribute agricultural lands to as many tenants and farmworkers as
possible. If the agricultural land is untenanted or does not have farmworkers, it is the responsibility of the
DAR to locate qualified beneficiaries pursuant to Section 22 and Section 7 of RA 6657;
c.
d.
The award of three hectares to the beneficiaries is in line with the objective of forming and
maintaining economic- siz e family farms.
What Administrative Orders govern land distribution?
a.
Administrative Order No. 10, Series of 1990 entitled, "Rules and Procedures in the Distribution of
Private Agricultural Lands Agrarian Reform Beneficiaries under RA 6657"; and
b.
Administrative Order No. 02, Series of 1992 entitled, "Supplemental Guidelines on AO No. 10,
Series of 1990, and Other Issuances the Rights of Farmworkers".
When does land acquisition end and when does land distribution begin?
The cut- off point in the land acquisition process is the transfer of title from the landowner to the Republic of the Philippines as evidenced by the Transfer Certificate of Title
(TCT) issued by the ROD. Immediately upon receipt of the TCT, the DAR shall take possession of the land and proceed with land distribution.
May distribution occur before the end of acquisition?
Yes. The cut- off point above is for compulsory acquisition cases where landowner refuses to cooperate. Operationally, distribution can begin earlier, particularly if the
landowner is cooperative and is willing to let the identified beneficiaries cultivate the land.
What proof of land ownership is given to beneficiaries?
Beneficiaries receive the following titles:
a.
b.
Certificates of Land Ownership Award (CLOAs) for CA, VOS, and 407 lands, resettlement areas and landed estates; and
c.
Beneficiaries of the Integrated Social Forestry Program covering agro- forestry public lands whose ownership cannot be transferred, received Certificates of Stewardship
Contract (CSCs) which are good for 25 years, renewable for another 25 years.
Is a Certificate of Land Transfer (CLT) an evidence of ownership of the land?
No. In the case of Magana vs. Paitan (G.R. No. 60269, 13 September 1990), it was held that the mere issuance of CLT does not vest in the farmer- grantee, ownership of the
land described therein. It merely provides evidence of the government's recognition of the grantee as the part qualified to avail of the statutory requirements for acquisition
under PD 27. Failure of the farmer- beneficiary to comply with the requirements will result in the cancellation of the said CLT. Thus, failure on the part of a farmer/grantee to pay
lease/amortiz ation payment to the landowner or agricultural lessor when they fall due for a period of two years shall be a ground for forfeiture of the CLT.
10.2 AWARD CEILING
How many hectares of land can an awardee get?
Individual beneficiaries may each receive the following maximum hectarages:
a.
Three hectares under RA 6657 acquisition modes (CA, VOS, VLT/DPS, EO 407);
b.
Three hectares for irrigated and five hectares for unirrigated rice and corn lands covered under
the OLT program of PD 27; and
c.
Potential beneficiaries who own less than three hectares of agricultural land may still receive land under
CARP but only to the extent of the difference between the award limit of three hectares and their present
land ownership. For example:
Award Ceiling
ARB owns
3.0 has.
1.2 has.
1.8 has.
3.0 has.
In all cases, the aggregate award and the total land ownership of the ARB as a result of the award shall not exceed three hectares.
Suppose the area actually occupied by a tenant slightly exceeds the three hectare award ceiling and there is no other tenant in the landholding, how will the excess area be
disposed?
Since there is no guideline governing the allocation of excess area over the allowable three- hectare ceiling under RA 6657, the pertinent provision of the Ministry of Agrarian
Reform Administrative Order No. 03- 85, Series of 1985 can be applied. This states that "The economic family size farm to be transferred to a bonafide farmer beneficiary pursuant
to PD 27 shall include a tolerable limit of not more than ten percent (10%) or 3.3 hectares if irrigated and 5.5 hectares if unirrigated."
Hence, if the excess area is within the 10% tolerable limit (or 3.3 hectares under RA 6657), then the total aggregate area may be awarded to the qualified farmer- beneficiary.
10.3 LAND DISTRIBUTION PROCEDURES
What are the basic steps in the redistribution of lands under VOS, CA, and EO 407?
MARO
a.
Upon completion of land acquisition, the first activity done is the validation of the list of qualified ARBs. This is to ensure that those who were identified during the
acquisition phase are still present and qualified to receive the land.
b.
Through a letter or through the CARP Beneficiary Certificate (CBC), the identified ARBs are formally notified that they have been qualified to receive the land. The notice
also grants the ARBs the usufructuary rights and privileges and obliges them the duties and responsibilities over the land.
c.
The ARBs are consulted as to their preferred mode of distribution, i.e., individual, collective or co- ownership. Then, Land Distribution Folders are prepared based on
the ARBs' preference and submitted to the PARO.
PARO
a.
Reviews all documents and generates the Certificates of Land Ownership Awards (CLOAs).
b.
If ARBs prefer individual parcels, then the PARO requests the DENR to conduct subdivision survey.
c.
Submits the CLOAs to the DAR Regional Office (DARRO) who causes them to be signed by the Secretary.
d.
Registers the CLOAs with the ROD and forwards them to the MARO for distribution.
e.
The ARBs are allowed to take possession of the land and use it for production.
Any of the co- owners shall submit to the PARO, through channel, a written request for the subdivision of the land.
b.
The PARO shall endorse the request for subdivision to the DARRO for bidding and award to private contractors or the DAR itself may instead execute the subdivision
survey of the target landholdings.
DARRO
a.
The DARRO shall bid and award the survey to private contractors or cause the conduct of the survey by DAR survey teams if available.
b.
The survey returns shall be submitted to the DENR for verification and approval.
c.
PARO
a.
Prepare a Deed of Partition for the signature of all the co- owners, specifying the lot number and the exact parcel intended for the co- owner concerned, based on the
approved subdivision plan. The Deed of Partition shall be duly notariz ed.
b.
Retrieve the owner's duplicate certificate of title of the collective CLOA from the ARBs for cancellation by the ROD.
c.
Generate individual TCT- CLOAs for each co- owner based on the approved subdivision plan and the duly notariz ed Deed of Partition.
d.
Transmit the CLOAs, the Deed of Partition, and approved subdivision plan to the Register of Deeds concerned for the registration. The owner's duplicate certificate of
title of the collective CLOA shall be surrendered to the ROD for cancellation.
e.
Record the registered CLOAs and transmit the same to the MARO for redistribution to the individual co- owners.
hereditary succession;
b.
to the Government;
c.
d.
If the land has been transferred to the government or to LBP, the children of spouse of the ARB shall still
have the right to repurchase the land within two years.
Ownership of lands awarded under PD 27 or EO 228, however, may be transferred after full payment of amortiz ation by the beneficiary. (Section 6, EO 228) But there are
guidelines now being formulated which will determine where the ten- year prohibition period under Section 27 may be applicable, and will also provide for additional
safeguards to prevent abuse in the selling of PD 27 lands.
Does this mean that after ten years, under the CARP, the ARB may sell to anybody provided he or she has fully paid for the land and the buyer will not have more than five hectares
after the transaction?
Yes, the ARB may sell the land provided that the total landholdings of the buyer after the purchase does not exceed five hectares.
What if the ARB no longer wants to farm?
The ARB has the option to transfer or convey the rights to the land to any of his or her qualified heirs or to any other beneficiary, even if the land has not yet been fully paid.
The conditions are that the transfer has the prior approval of the DAR and that the transferee will personally cultivate the land.
What happens if the new ARBs fail to cultivate the land themselves?
Then the land shall be transferred to the LBP which shall give notice of availability of the land to the BARC. The BARC in turn, shall notify the Provincial Agrarian Reform
Coordinating Committee (PARCCOM).
Under such instances, the LBP shall reimburse the original ARB one lump sum for the amount of amortiz ations made including payments for the value of the improvements on
the land. The new ARB will have to start amortiz ing anew.
Can an agrarian reform beneficiary subdivide in favor of his or her children the three hectares of land awarded under CARP?
Strictly speaking, no. The three hectares, as the identified economic- siz ed family farm, should be preserved as a single operating unit to promote the farm's economic
viability.
Should the beneficiary die or be incapacitated, succession to the farmholding shall be governed by the pertinent provisions of the Civil Code, subject to the condition that the
land shall not be fragmented. This means that the land shall be transferred to the spouse of the ARB or in the absence or incapacity of the spouse, to the eldest child who
meets the qualifications to be a CARP beneficiary, particularly the requirement of willingness, aptitude and ability to cultivate the land and make it productive. The heir who
succeeds on the land shall pay the other heirs their corresponding legal shares. In the absence of such children, e.g., if all the children are less than 15 years old, the land
shall be transferred to the DAR which shall look for a new beneficiary on the land.
Aside from those already mentioned, what are the grounds for the cancellation of Emancipation Patents (EPs) or Certificates of Land Ownership Award (CLOA)?
Violations of agrarian laws, rules and regulations are grounds for the cancellation of registered EPs or CLOAs. These include but are not limited to the following:
1.
Misuse or diversion of financial and support services extended to the ARB; (Section 37 of RA 6657).
2.
Misuse of the land; (Section 22, RA 6657) This refers to any act causing substantial and unreasonable damage on the land, and causing the deterioration and
depletion of the soil fertility and improvements thereon. It also includes the act of knowingly planting, growing, raising, or permitting the planting, growing, raising of any plant
which is the source of a dangerous drug, as defined in PD No. 1683, as amended. (AO No. 02- 94).
3.
Material misrepresentation of the ARB's basic qualifications as provided under Sec. 22 of RA 6657, PD 27 and other agrarian laws;
4.
5.
Sale, transfer, lease or other forms of conveyance by a beneficiary of the right to use or any other usufructuary right over the land acquired by virtue of being a
beneficiary in order to circumvent the provisions of the different agrarian laws. (Lands awarded under PD 27/EO 228, however, may be transferred after full payment of
amortiz ation).
6.
Default in the obligation to pay an aggregate of three (3) consecutive amortiz ations in case of VLT/DPS, except in cases of fortuitous events and force majeure;
7.
Failure of the ARBs to pay for at least three (3) annual amortiz ations to the LBP, except in cases of fortuitous events and force majeure;
8.
Neglect or abandonment of the awarded land continuously for a period of two (2) calendar years as determined by the Secretary or his authoriz ed representative
(Section 22, RA 6657);
9.
The land is found to be exempted/excluded from PD 27/EO 228 or CARP coverage or to be part of the landowner's retained area as determined by the Secretary or
his authoriz ed representative;
10.
Other grounds that will circumvent laws related to the implementation of the agrarian reform program (see AO No. 02, Series of 1994).
Under AO No. 06- 93, lands awarded pursuant to EO 229, RA 6657 and lands acquired under EO 407
shall be repaid by the ARBs to Land Bank in 30 annual amortiz ations at six percent (6%) interest per
annum based on the cost of the land and permanent improvements. These are the regular annual
amortizations.
However, to make payments affordable, amortiz ation shall be reduced to:
*
*
10.0% of AGP from the sixth to the thirtieth year if this amortiz ation ceiling is lower than the regular
amortiz ation.
Simulation:
Annual Gross Production (AGP) established
during land valuation (AO- 06- 92):
P15,000.00
P22,706.38
0.07265
P1,849.57
P15,000 x .025
P375.00
P15,000 x .050
P750.00
P15,000 x .100
P1,500.00
Compare annual regular amortiz ation (P1,849) with the schedule of amortiz ation ceiling shown earlier. Since the ceiling is lower than the annual regular amortiz ation, the ARB
will pay based only on the ceiling. The difference represents the government's subsidy.
What is the "assistance" to farmers?
Assistance to farmers refers to:
a.
the difference between the regular annual amortiz ation (based on the amount paid or approved for payment to the landowner) and the affordable amount during the
first five years after the award of the land to the ARBs; and
b.
the difference between the regular amortiz ation and ten percent (10%) of the AGP during the 6th to the 30th year whenever such 10% of AGP is lower than the regular
amortiz ation.
After making payments for 30 years, the beneficiary stops paying. The difference between what the Government paid to the landowner and what it was able to collect from the
ARB is the Government subsidy or the assistance to farmers.
It may be noted that aside from the difference in the total amounts, there is also a huge difference in the present value of the total amount including market rate of interest that
the Government will pay the landowner and what it will receive from the ARB annually for 30 years.
Will the average gross production have to be computed annually?
No. In the case of already productive lands, the AGP shall be computed once, during the valuation process, based on the peso value of the annual yield/produce per hectare
of the land awarded to farmer- beneficiaries as established jointly by the DAR and the LBP which is reflected in the valuation portion of the Claims Valuation and Processing
Form.
If only for this reason, it is imperative to involve the BARC and the beneficiaries as early as possible to inform them about the data gathered on the AGP of the land and get
their comments and reactions.
How about in newly cultivated lands?
In the case of newly cultivated lands without established AGP, the terms of repayment shall be as follows:
1.
For lands planted to either perennial or short term (seasonal) crops, the initial annual repayments by the ARBs shall be equivalent to 2.5% based on the cost of the
land or 2.5% of the imputed AGP, whichever is lower, until such time that the AGP has been established or determined.
Imputed AGP shall be determined using industry data obtained from government/private entities in the barangay. In the absence thereof, AGP for the municipality, province or
region in that order, shall be considered.
2.
For idle and abandoned lands, initial annual repayments shall be equivalent to 2.5% based on the cost of the land until such time that the AGP has been
established/determined.
In both cases, the average of the first three (3) years production shall be the basis in establishing the permanent AGP. The first three (3) years amortiz ation and all subsequent
amortiz ations shall be adjusted and based on the permanent AGP established.
What if the ARB later on increases his or her production?
The computed annual payments will not change. The benefits of increased production should all go to the beneficiary's pocket as his or her incentive.
How about in lands already valued and financed by LBP for which beneficiaries have started amortizing? Under PD 27, the period of repayment is 15 years.
LBP shall extend the period of payment to twenty years.
How will the grant of increment of six percent (6%) yearly interest compounded annually on OLT lands affect the amortization payment by OLT beneficiaries?
Although this grant effectively raises compensation to owners of OLT lands, agrarian reform beneficiaries will not be affected. They shall continue to amortiz e the land on the
basis of the original land value.
PD 27 provides that lease rental payments made by the farmer-beneficiary to the landowner after 21 October 1972 shall be considered as advance payment for the land. What
documents are required to serve as evidence of payment?
Allegations of lease rental payment on the sole basis of affidavits ("pagpapatotoo") executed by the farmer- beneficiaries concerned shall not be sufficient. DAR Memorandum
Circular No. 11, Series of 1994 provides that such affidavits must be supported by additional evidence. The Memo Circular states that the FB's affidavit must be confirmed by
the landowner and that there should be other corroborative evidence to substantiate the allegation that payment of lease rental had been paid to the landowner (e.g., affidavit
of BARC members/farmers).
What are the procedures for determining sufficiency of lease rental payments as advance amortization and consequently, the issuance of certificate of full payment to the farmerbeneficiary?
1.
MARO shall serve a copy of the FB's affidavit to the landowner through either:
personal delivery
The ROD registers the Emancipation Patent (EP) on the basis of the PARO's Certificates of Full Payment and the RD's Order (in case of appeal).
Yes. The VLT/DPS agreement shall contain sanctions for non- compliance by either party and such shall be duly recorded and its implementation monitored by the DAR.
Should the beneficiary, for reason other than those brought about by force majeure or fortuitous events default in his/her obligations for three (3) consecutive installments to pay
the land amortiz ation, he/she shall be replaced as beneficiary and be permanently disqualified from being a beneficiary under CARP. DAR shall cancel the CLOA which had
been issued and transfer the land to either:
a.
Qualified heir of the beneficiary who shall assume the balance of the value of the land; or
b.
In the absence of a qualified heir, a new qualified beneficiary who, as a condition for such transfer, is willing to abide by the terms of the existing VLT/DPS agreement
and who will pay for the entire value of the land.
What will happen to the payments made by the previous beneficiary who has defaulted?
In case of (b) above, the landowner shall refund the previous beneficiary in one lump sum or on installment basis for the amounts already paid and for the improvements
made by the latter, less the computed lease rental for the duration of the previous beneficiary's use of the land and other charges provided by law.
11.4 PAYMENT IN LAHAR AFFECTED AREAS
Are the farmer-beneficiaries in lands affected by the Mt. Pinatubo eruptions required to continue paying their amortization?
The Joint DAR- LBP Administrative Order No. 03, Series of 1994 provides the policy guidelines and procedures to be followed under this situation.
Payment of amortiz ation shall be deferred if subject landholding falls under Category I actually affected areas (see Page 78 ) until such time that the land becomes
productive again, without prejudice to the farmer's voluntary payment of amortiz ation. The farmer, however, should first notify the Land Bank in writing of his/her intention of
deferring payment and this must be approved by Land Bank.
If the landholding falls either under Category II not yet affected or Category III lands covered by ashfall, the farmer shall continue to pay the amortiz ation.
Will payment also be deferred if the land is under Category I but acquisition was through voluntary land transfer or direct payment scheme?
Yes, but instead of notifying the Land Bank, the farmer- beneficiary concerned shall notify the landowner in writing with the assistance of DAR of his/her intention to defer
payment.
CHAPTER 12
SUPPORT SERVICES
12.1 SUPPORT SERVICES TO LANDOWNERS
What support services shall be provided to the affected landowners?
The support services provided to landowners are:
a.
b.
facilities, programs and arrangements for exchange and marketing of LBP bonds; and
c.
other services intended to assist landowners in productively utiliz ing the proceeds of the sales of the land for rural industrializ ation.
What specific action has been done by DAR to facilitate assistance to landowners?
Special Order No. 172, Series of 1993 mandated the creation of a Landowner's Desk in every DAR
provincial office. This desk will be handled by one full- time staff with the position of at least a
Supervising Agrarian Reform Program (SUARPO). This LO's Desk shall handle exclusively and
specifically landowners' problems, issues and concerns.
The LO's Desk Officer shall have the following responsibilities:
1.
Answer landowners' queries and receive complaints and other concerns brought by the
landowners to the attention of DAR;
2.
Refer these concerns to appropriate DAR units or to the LBP- Land Valuation Office, or other
government agencies for resolution;
3.
4.
12.2
What are the support services provided to the agrarian reform beneficiaries?
Appropriate support services should be provided to the ARBs. These services include:
a.
b.
c.
d.
institutional development;
e.
marketing and management assistance and support to cooperatives and farmers
organiz ations; and
f.
infrastructures
CHAPTER 13
AGRICULTURAL LEASEHOLD
13.1
What are the laws governing leasehold relationship between landowners and lessees?
Various laws have been passed governing leasehold tenancy. A review of such laws would reveal a progression from one of election and limited operation to one of
compulsion and comprehensive application.
a.
RA 1199 (An Act to Govern the Relations Between Landholders and Tenants of Agricultural lands.)
(Leasehold and Share Tenancy) 30 August 1954. Under this law, the tenant was given the right to choose a
leasehold tenancy arrangement.
b.
RA 3844 An Act known as Agricultural Land Reform Code Instituting Land Reform in the Philippines,
including the Abolition of Tenancy and the Channeling of Capital Into Industry, 08 August 1963. This law
declared agricultural share tenancy to be contrary to public policy and was, thereby, abolished.
c.
RA 6389 An Act Amending RA 3844, otherwise Known as the Agricultural Land Reform Code, and
for Other Purposes, 10 September 1971. This provided for the automatic conversion of agricultural share
tenancy to agricultural leasehold but with Section 35 of RA 3844 retained. This section allowed the
exemption of certain landholdings from leasehold fishponds, salt beds and lands principally planted to
citrus, coconut, cacao, coffee and other similar permanent trees.
d.
RA 6657 (Section 12) mandated the DAR to determine and fix immediately the lease rentals in
accordance with Section 34 of RA 3844, but expressly repealed Section 35 of RA 3844. This, therefore, abolished the exemptions and made all tenanted agricultural lands
subject to leasehold.
What are the significant implications of these changes in the laws?
The significant implications are as follows:
a.
abolition of share tenancy and conversion to agricultural leasehold now covers all agricultural lands without exception;
b.
c.
All share crop tenants were therefore, automatically converted into agricultural lessees as of 15 June 1988 whether or not a leasehold agreement has been executed.
WHAT ADMINISTRATIVE ORDER COVERS LEASEHOLD IMPLEMENTATION?
DAR Administrative Order No. 05, Series of 1993, "Rules and Procedures Governing Agricultural Leasehold and the Determination of Lease Rental for Tenanted Lands".
This AO supersedes the following AOs:
AO No. 04, Series of 1989, "Rules and Procedures Governing Agricultural Leasehold and the Determination of Lease Rental for Tenanted Lands";
AO No. 09, Series of 1991, "Rules and Procedures on Leasehold Operations in Tenanted Coconut Lands; and
AO No. 04, Series of 1992, "Rules and Procedures on Leasehold Operations on Tenanted Sugarcane Lands"
Why is there a need to institute leasehold in the retained areas of landowners?
The DAR should institute leasehold to protect and improve the tenurial and economic status of tenant- tillers in agricultural lands within the retained areas and in areas not yet
covered.
Leasehold would improve the hold of the tenant on the land because the lessee shall have physical possession and enjoyment, as well as management of the land.
Furthermore, with the fixing of the lease rental, the lessee would get more for his or her labor and other inputs. ASHICc
13.2 TENANCY RELATIONSHIP
What are the conditions set for a tenancy relationship to exist?
All the following conditions must be present for tenancy relationship to exist:
a.
b.
c.
That there is consent by the landowner for tenant to work on the land, given either orally or in writing, expressly or impliedly;
d.
e.
That there is personal cultivation or with the help of the immediate farm household; and
f.
That there is compensation in terms of payment of a fixed amount in money and/or produce
b.
voluntary surrender of the landholding by the tenant- lessee after giving notice to the lessor three months in advance (Sec. 8, RA 3844); or
c.
absence of an heir to succeed the lessee in the event of his/her death or permanent incapacity. (RA 3844, as amended, Sec. 7 and 8)
The leasehold relation is likewise extinguished when the lessee's dispossession of the land is authoriz ed by the DAR Adjudication Board or by the proper court in a judgment
that is final and executory, for violations of the leasehold agreement or pertinent provisions of agrarian laws on leasehold.
On what grounds may a tenant-lessee be dispossessed of his/her tillage?
An agricultural lessee may be dispossessed of his/her tillage on the following grounds:
a.
He/she failed to substantially comply with the terms and conditions of the leasehold contract or with laws governing leasehold relations, unless the failure is caused by
a fortuitous event or force majeure;
b.
He/she planted crops or used the land for a purpose other than what had been previously agreed upon. AO No. 05- 93, however, now allows the lessee to intercrop or
plant secondary crops after the rental has been fixed, provided he/she shoulders the expenses;
c.
He/she failed to adopt proven farm practices necessary to conserve the land, improve its fertility, and increase its productivity (with due consideration of his/her
financial capacity and the credit facilities available to him/her);
d.
His/her fault or negligence resulted in the substantial damage, destruction, or unreasonable deterioration of the land or any permanent improvement thereon;
e.
or
He/she does not pay the lease rental when it falls due except when such non- payment is due to crop failure to the extent of 75 percent as a result of a fortuitous event;
f.
b.
c.
If the death or personal incapacity of the lessee occurs during the agricultural year, the choice by the lessor shall be done at the end of that agricultural year. If the lessor fails
to exercise his choice within the prescribed period, the above mentioned order of priority shall be followed. In case of death or permanent incapacity of the lessor, the
leasehold relation shall bind his/her legal heirs.
What is the effect of transfer of legal ownership of the land?
Leasehold is not extinguished with the transfer of legal ownership of the land from one landowner to another. Section 10 of RA 3844, as amended, provides that the purchaser
or transferee shall be subrogated to the rights and substituted to the obligations of the agricultural lessor.
13.3 RIGHTS AND RESPONSIBILITIES OF LESSEE
What are the rights of the lessee?
a.
b.
To manage and work on the land in a manner and method of cultivation and harvest which conform to proven farm practices;
c.
d.
To deal with millers and processors and attend to the issuance of quedans and warehouse receipts of the produce due him/her;
e.
To continue in the exclusive possession and enjoyment of any homelot the lessee may have occupied upon the effectivity of RA 3844;
f.
To be indemnified for the costs and expenses incurred in the cultivation and for other expenses incidental to the improvement of the crop in case the lessee
surrenders, abandons or is ejected from the landholding;
g.
h.
To be paid disturbance compensation in case the conversion of the farmholding has been approved.
a.
Cultivate and take care of the farm, growing crops, and other improvements on the land and
perform all the work therein in accordance with proven farm practices;
b.
Inform the lessor within a reasonable time of any trespass committed by third persons on the farm,
without prejudice to his/her direct action against the trespasser;
c.
Take reasonable care of the work animals and farm implements delivered to him/her by the lessor
and see to it that they are not used for purposes other than those intended, or used by another without the
knowledge and consent of the lessor;
If any of such work animals or farm implements get lost or damaged due to the lessee's negligence,
he/she shall pay the lessor the equivalent value of the work animals or farm implements at the time of the
loss or damage;
d.
Keep the farm and growing crops attended to during the work season. In case of unjustified abandonment or neglect of his/her farm, any or all of the expected produce
may, upon order of the appropriate body or court, be forfeited in favor of the lessor to the extent of the damage caused thereby; and
e.
Under RA 3844, as amended, the lessee has also the responsibility to notify the lessor at least three days before the date of harvesting, or whenever applicable, the date of
threshing. As decided in a Supreme Court ruling, however, this is no longer required from the lessee.
Is there a limit in the area a lessee under CARP may cultivate?
No. Since RA 6657 only speaks of the three (3) hectare limit with respect to the award that may be given to the ARB, this ceiling does not apply under the leasehold system.
The tenant, however, must render personal cultivation on the entire area leased.
Can a lessee be a tenant in a separate landholding?
Section 27 of RA 3844 includes as one of the prohibited acts of an agricultural lessee, entering into a contract to work additional landholdings belonging to a different
agricultural lessor to acquire and personally cultivate an economic family siz e farm without the knowledge and consent of the lessor with whom he/she had first entered into
leasehold, if the first landholding is of sufficient siz e to make him/her and the members of the immediate farm household fully occupied in its cultivation.
Based on this provision, it is still possible for a lessee to be a tenant in another landholding. The prohibition applies if the land presently cultivated is already of sufficient siz e
to fully occupy the lessee or his/her immediate household in the cultivation. Even if the siz e is already sufficient, cultivation of other landholdings is still possible if there is
consent of the original lessor.
What is meant by "economic family size" farm?
RA 3844 has defined economic family siz e farm as an area of farm land that permits efficient use of labor
and capital resources of the farm family and will produce an income sufficient to provide a modest
standard of living to meet a farm family's need for food, clothing, shelter and education with possible
allowance for payment of yearly installments on the land, and reasonable reserves to absorb yearly
fluctuations in income.
Is the lessee compelled to pay additional rent for the secondary crops raised by his/her after the execution of
the contract?
No, after the rental has been fixed, such rental shall serve as payment for the use of the land. The
lessee may diversify and/or plant secondary crops without paying additional rent, provided that all
expenses are shouldered by him/her.
What are the specific rights of the lessees in sugarcane lands which should be part of the leasehold
agreement?
The lessees in sugar cane lands shall have rights which can be exercised by them personally or through a duly registered cooperative or farmers' association of which they
are members. These are to:
1.
enter into a contract with the sugar central or millers for the milling of sugar cane grown on the leased property;
2.
be issued a warehouse receipt (quedan) or molasses storage certificate by the sugar central for the manufactured sugar, molasses and other by- products.
3.
have free access to the sugar central's factory, facilities and laboratory for purposes of checking and/or verifying records and procedures;
4.
be furnished a weekly statement of cane and sugar account showing, among other things, the tonnage of the delivered cane and analysis of the crusher juice;
5.
be given thirty (30) days notice in writing before the sugar and other by products are sold through public auction; and
6.
What if the sugar central/miller refuses to recognize the rights of the lessee?
In cases of such refusal by the sugar/miller, then the lessee with the assistance of DAR and/or the cooperative of which he/she is a member of, should file a petition with the
DARAB.
What if the land under lease is subject of an approved land use conversion applications?
The lessee may be dispossessed of his/her tillage if such land is subject of an approved land use conversion application, provided the lessee is given a disturbance
compensation equivalent to five (5) times the average of the gross harvests on his/her land during the last five (5) preceding calendar years, and such other benefits he/she is
entitled to as provided for by law.
13.4 RIGHTS AND RESPONSIBILITIES OF LESSOR
What are the rights of the lessor?
Section 29 of RA 3844 provides that it shall be the right of the lessor to:
a.
Inspect and observe the extent of compliance with the terms and conditions of the leasehold contract;
b.
Propose a change in the use of the landholding to other agricultural purposes, or in the kind of crops planted;
c.
Require the lessee, taking into consideration his/her financial capacity and the credit facilities available to him/her, to adopt proven farm practices necessary to the
conservation of the land, improvement of the fertility and increase in productivity; and
d.
a.
To dispossess the lessee of his/her landholding except upon authoriz ation by the Court under
Section 36, RA 3844;
b.
To require the lessee to assume, directly or indirectly, the payment of the taxes or part thereof
levied by the government on the landholding;
c.
To require the lessee to assume, directly or indirectly any rent or obligation of the lessor to a third
party;
d.
To deal with millers or processors without written authoriz ation of the lessee in cases where the
crop has to be sold in processed form before payment of the lease rental;
e.
To discourage, directly or indirectly, the formation, maintenance or growth of unions or
organiz ations of lessees in his/her landholding;
f.
For coconut lands, indiscriminate cutting of coconut trees will be deemed a prima facie evidence
to dispossess the tenant of his/her landholding unless there is written consent of the lessee and there is
certification by the Philippine Coconut Authority (PCA), copy of the findings and recommendations of
which shall be furnished to affected tenants or lessees, or a resolution from the Municipal Board allowing the cutting for valid reasons. (AO-05, Series of 1993 and AO 16, Series
of 1989)
Is indiscriminate cutting of coconut trees prohibited only in tenanted coconut lands?
No, even in lands cultivated by farmworkers.
Should the landowner execute two (2) separate leasehold contracts with the same lessee, one for the principal crop and the other for the secondary crop?
No. As a general rule, the landowner and lessee shall only execute one contract for their leasehold relation. The execution of two contracts is no longer necessary since the
lease rental shall cover the whole farmholding cultivated by the lessee. Hence, secondary crops shall form part of the leasehold contract.
There are, however, certain qualifications: the secondary crop must have already been planted as of 15 June 1988 and the area covered is more than half a hectare.
What if there are two or more tenants?
If there are two or more tenants on the same lot, each producing a different crop, they may decide to have a joint leasehold agreements, whichever is feasible.
What are the liabilities of a lessor if he/she ejects his/her tenant-lessee without the court's authorization?
A lessor shall be liable for:
a.
fine or imprisonment;
b.
damages suffered by the agricultural lessee in addition to the fine or imprisonment for unauthoriz ed dispossession;
c.
d.
10 September 1971 the date of effectivity of RA 6389 for tenanted rice and corn lands;
date the tenant opted to enter into leasehold agreement or as of 15 June 1988, whichever is sooner, for tenanted sugar lands; or
*
date of leasehold agreement by the parties concerned or 15 June 1988, whichever is sooner, for all other agricultural lands after deducting the amount used for seeds
and the cost of harvesting, threshing, loading, hauling and processing whichever is applicable.
For example, in coconut, the deductible items would depend on the final product. If the final product is green nuts, then there is no cost of processing included. If the final
product is copra, then the deductible items would include cost of harvesting, loading and hauling, and the cost of husking, splitting, scooping and drying.
Can fertilizer be included in the list of allowable deductions for any particular crop?
No, only those enumerated under Section 34 of RA 3844 as cited above can be included as a deductible item. However, DAR shall study the effect of the use of fertiliz er and
other related expenses as a cost of production and its impact on the rental structure. This shall be taken into account in the periodic review and adjustment of the rental
structure.
How do you compute for the lease rental of newly cultivated land?
In the case of newly cultivated land or land cultivated for a period less than three years the initial rental shall be based on the harvest of the first agricultural year, if such
harvest is normal, or on the average harvest during the preceding agricultural years. If there had been no normal harvest, then the estimated normal harvest when the land was
actually cultivated shall be used. cCAaHD
Once the three normal harvest have been established, the final rental shall be based on the average normal harvest of these three preceding agricultural years.
Why is the lessor given only 25% while the lessee retains 75% of the net produce from the land?
These percentages were provided for under RA 3844 on the premise that the lessee largely contributes to the production of crops or fruits; while the lessor's only contribution is
the land.
Identify all landholdings still under share tenancy and list the landowner and share- tenants thereon;
2.
3.
Prioritiz e areas for leasehold implementation taking into account presence of strong people's organiz ations and/or voluntary application by any lessor or lessee;
4.
Require submission by parties concerned of documents on production data, normal harvest, and cost of deductible items during the three immediately preceding
agricultural years. If these are not available, gather production data released by the proper government agency;
5.
Conduct mediation conference (with the assistance of the Barangay Council, if there is no BARC) between the landowner and the lessee for the purpose of fixing the
lease rental.
If any party fails to attend the conference despite notice, mail notice at the last known address of the parties and post two successive notices at seven days apart at the
municipal, barangay halls and the place where the land is located. The MARO shall proceed with the computation of the lease rental. The second notice should be posted at
least ten days prior to the scheduled conference;
6.
In case of disagreement, accomplish the prescribed leasehold form in five copies in the language or dialect known to the lessees, explain the contents and have it
signed or thumb marked by the parties or duly authoriz ed representative before two witnesses;
7.
Register the Leasehold Agreement with the Municipal Treasurer and furnish each party a copy of the registered agreement. The PARO, on the other hand, will have the
leasehold agreement annotated at the back of the Transfer Certificate of Title on file with the Register of Deeds.
What if there is no agreement reached during the mediation conference?
If no agreement is reached despite the mediation conferences, the MARO shall fix the provisional lease rental and prepare the Leasehold Documentation Folder. Copies of
the Order for Provisional Lease Rental shall be sent to the landowner, lessee and the PARO. The Leasehold Documentation Folder shall then be transmitted to the PARAD.
The PARAD shall review the provisional lease rental within 30 days from the receipt of the documentation folder and issue the order of lease rental.
Pending the review of the provisional lease rental, the PARAD upon motion of the landowner shall order the lessee to deposit the provisional lease rental with the nearest LBP
Office in a trust account in the name of the landowner, if the payment is in cash, or in a designated bonded warehouse if the payment is in kind and give a written notice to the
MARO and the landowner.
What if either or both the parties concerned disagree with the order of lease rental made by the PARAD?
Any party who disagrees with the Order of Lease Rental issued by the PARAD may bring the matter to the DARAB within 15 days from receipt thereof. Otherwise, the Order
shall become final and executory.
3.7
1.
Presidential Decree (PD) No. 152, promulgated on 31 March 1973, prohibited the employment or use of share- tenants in complying with the requirements of the law
regarding entry, occupation, improvement and cultivation of public lands.
2.
PD No. 583, promulgated on 10 November 1974, prescribed penalty for the unlawful ejectment, exclusion, removal or ouster of tenant farmers from their landholdings.
3.
PD No. 816 promulgated on 21 October 1975, penaliz ed any agricultural lessee of rice and corn lands under PD 27 who deliberately refuses or continues to refuse to
pay rentals or amortiz ation payments when they are due and remain unpaid within a period of two years.
4.
PD No. 1425, promulgated on 10 June 1978, strengthened the prohibition against the practice of share tenancy and provided penalties thereof. Under this Decree, any
tenant who refuses to enter into leasehold contract may be prosecuted before the Court of Agrarian Relations.
5.
PD No. 1040 promulgated on 21 October 1976, prohibited and penaliz ed the contracting of share- tenants in all agricultural lands covered by PD 27.
CHAPTER 14
PRODUCTION AND PROFIT SHARING
14.1 COVERAGE
What is production and profit sharing?
This is a mandate under Section 16 of EO 229 and Sections 13 and 32 of RA 6657 which requires individuals or entities owning or operating under lease or management
contract, agricultural lands to execute production and profit sharing plan with their farmworkers or farmworkers' organiz ation, pending final distribution of the land or
implementation of the stock distribution scheme.
What are the existing Administrative Orders governing production and profit sharing?
a.
Administrative Order No. 08, Series of 1988, "Guidelines and Procedures Implementing Production and
Profit Sharing Under RA 6657"
b.
Administrative Order No. 09, Series of 1988, "Guidelines and Procedures Implementing Production
Sharing Under EO 229"
It will be observed that EO 229 mandated only production sharing while RA 6657 included profit sharing on
top of the production sharing.
Who are required to execute production and profit sharing plan?
The following employers are required to execute Production and Profit Sharing Plan with their farmworkers if
their annual gross sales exceed Five Million Pesos (P5M):
a.
Any enterprise owning or operating agricultural lands under lease, management contract, production
venture or other similar arrangement;
b.
c.
Commercial farms devoted to aquaculture including salt beds, fishponds and prawn ponds, fruit farms, orchards, vegetable and cut flower farms, and cacao, coffee
and rubber plantation.
Why are these employers required to execute production and profit sharing plan with their farmworkers?
Section 2 of RA 6657 declared that agrarian reform program is founded on the right of the 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.
This mandated production and profit sharing plan is in pursuit of this avowed principle of agrarian reform. While awaiting for final land or stock distribution until the end of the
deferment period in the case of commercial farms, or full control of the land in the case of lease back arrangements, farmworkers can realiz e an improvement in their farm
income.
Who are the employees covered?
All farmworkers of covered employers, regardless of duration, who are directly working on the land of the corporation or other entities, whether classified as regular, seasonal,
technical or other farmworkers are covered in the mandated Production and Profit Sharing Plan. They should not, however, own more than three (3) hectares of agricultural
land.
14.2 DAR's AUTHORITY
What is the power given to the DAR in the implementation of production and profit sharing plan under the CARP?
The DAR through its Secretary or authoriz ed representatives has the following powers:
1.
To order and administer compliance with the Production Sharing provisions of EO 229 and
Production/Profit Sharing provisions of RA 6657;
2.
3.
4.
To compel answers to questions needing clarifications to shed light on problems encountered in
the implementation;
5.
6.
All covered employers are required to submit a report on the Production and Profit Shares distributed, including the special payrolls, under oath signed by the employer or his
duly authoriz ed representative, not later than 30 days after completion of the distribution of the workers' shares.
14.4 ROLE OF THE MARO
Can the MARO compel covered employers to execute production and profit sharing plan?
Yes, as long as they realiz e gross sales in excess of five million pesos and a net profit after the tax.
In case a covered employer who was granted a deferment refuse to execute a production and profit sharing plan, what sanction can the MARO enforce?
A report should immediately be submitted by the MARO to the PARO. Non- compliance with the provisions on production and profit sharing is a violation covered by the
provisions on Prohibited Acts and Omissions, and Penalties (Sections 73 and 74 of RA 6657, respectively).
Violation of the provisions on production and profit sharing is punishable by imprisonment of not less than one month to not more than three years or a fine of not less than one
thousand pesos (P1,000.00) and not more than fifteen thousand pesos (P15,000.00), or both, at the discretion of the court.
The MARO may also initiate the cancellation of the Order of Deferment issued by the DAR Regional Director and subject his land to compulsory acquisition.
What should the MARO do in case of disputes arising from production and profit sharing?
The MARO, together with the BARC should mediate and conciliate. They should convince both parties to settle the dispute voluntarily. In case there is no success in settling
the dispute, this shall be forwarded to the PARO and if still unsolved, it shall be submitted to the PARAD for adjudication.
CHAPTER 15
COMMERCIAL FARM DEFERMENT
15.1
Commercial farms are private agricultural lands over five hectares in siz e devoted to commercial aqua
culture including salt beds, fishponds and prawn ponds fruit farms, orchards, vegetable and cut
flower farms, and cacao, coffee, and rubber plantations.
It should be noted that the definition is limited to these commodities produced. Thus, other farms although
commercial in nature are not covered by the definition.
Further, Section 11, RA 6657 actually includes in the list lands devoted to commercial livestock, poultry and
swine raising. The Supreme Court decision in Luz Farms vs. the Secretary of Agrarian Reform (128 SCRA
568), however, has removed these farms from the coverage of CARP.
What is commercial farm deferment?
Section 11, RA 6657 as implemented by AO 16- 88 provides that the acquisition and distribution of qualified
commercial farms shall be deferred for ten (10) years from 15 June 1988. In case of new farms, the ten
year deferment period shall begin from the first year of commercial production and operation, as
determined by DAR.
15.2 RATIONALE FOR DEFERMENT
Why is coverage of these farms deferred?
The CARP provides for the deferment of the coverage of the farms mentioned earlier, to allow them to recover their investments and insulate them from possible disruptions in
operations and productivity during land acquisition and distribution. The commercial farm deferment provision of RA 6657, which runs counter to the general rule of immediate
land transfer, particularly of large estates, reflects the numerous compromises that had to be forged by the legislators in the crafting of the law.
15.3 REQUIREMENTS
Is the deferment automatic?
No. The farm should already be planted to commercial crops or devoted to commercial farming operations before 15 June 1988. It should likewise be applied for deferment
with the DAR, which shall approve the application based on whether or not the farm meets the requirements enumerated in Annex A of AO 16- 88. These criteria are on the
density of planting (number of plants or trees per hectare) and infrastructure and facilities of the farm.
When is the deadline for filing of applications for commercial farm deferment?
The extended deadline for applying deferment was 02 May 1989. Deadline for application was originally set on 20 March 1989 but was extended.
A total of 4,620 commercial farms applied as of November 30, 1994. The applications of 1,546 farms have been approved, covering 54,837 hectares. The rest are still being
evaluated and processed.
15.4 DEFERMENT PERIOD
When is the start of the ten-year deferment period?
For farms already in commercial production as of 15 June 1988, the deferment period began as of that date.
For farms already established before 15 June 1988 but were not yet in commercial production as of that date, the deferment starts from the first year of commercial production
and operations, or at the end of the gestation period provided in AO 16- 88 based on the crop planted or commodity produced. This is to give the landowner the chance to
recover and profit from his or her investments.
How about for farms with one crop of varying ages?
For farms divided into two or more area planted to a crop, the deferment period of each area has to be
determined, following the same rules above. Thus, deferment of those areas which were already in
commercial production as of the effectivity of RA 6657 began as of 15 June 1988. Deferment of those
areas not yet in commercial production as of 15 June 1988 began or will begin at the end of the
gestation period of the crop.
On the other hand, for farms with commercial crops intercropped with other commercial crops, the start
of the deferment is based on the status of the main crop.
What is the gestation period?
The gestation period is the period beginning from the time the crop or commodity is first planted or
raised until the time the crop bears fruit or the produce are harvested. The end of the gestation period is
the start of commercial production.
The gestation periods listed in Annex A of AO 16- 88 were recommended by the Department of Agriculture.
15.5 DAR's ROLE DURING DEFERMENT PERIOD
Is a farm granted deferment completely out of CARP coverage for ten years?
No, for two basic reasons: First, the deferment may be lifted and the farm subjected to immediate redistribution of the DAR determines that the purposes for which the
deferment is granted no longer exist. The reason for deferment must be continuously present for the farm to be continuously deferred. Thus, a deferred vegetable farm may be
compulsorily acquired if the landowner decides to devote the area to sugar cane production, instead.
The other reason is that a farm granted commercial farm deferment is required to pay production and profit shares (PPS), if it realiz es gross sales exceeding five million
pesos. This is to allow the farmworkers to receive a just share of the fruits of the farm during the deferment. The production and profit shares shall be paid upon the start of the
deferment period.
What shall the DAR do during the deferment period?
Aside from monitoring the farm as to compliance with the CFD and PPS regulations, the DAR shall undertake the necessary steps towards the acquisition and distribution of
the property. These include valuation of the land, and, more importantly, facilitating the organiz ation of the farmers by partner NGOs/POs in the area. Organiz ing the farmers
during the deferment period will smoothen the transfer of land ownership and prevent disruption of operation.
May a landowner with an approved commercial farm deferment application change his or her commercial crop? EDCTIa
Yes, provided the total deferment period reckoned from the date of first approval is not extended.
What happens if a farm which has been granted commercial farm deferment suffers from a calamity or force majeure? If the crops were destroyed, will the farm be immediately
covered under compulsory acquisition?
In cases where the crop planted or commodity raised in the area is destroyed by force majeure and the farm owner wants to replenish the crop or commodity, the DAR may
continue to grant the deferment provided the following conditions are present:
a.
b.
c.
Who will monitor compliance by landowner with the rules and regulations on commercial farm deferment?
The DAR Regional Office shall maintain records of the landowner's operations to monitor compliance with the rules and regulations on deferment. It is also the Regional
Director who signs the Order of Deferment.
For these purposes, the landowner shall make available to DAR the farm's premises for ocular inspection, the personnel for interview and the records for examination during
normal business hours.
CHAPTER 16
LAND USE CONVERSION
16.1 DEFINITION
WHAT IS LAND USE CONVERSION?
Conversion the act of changing the current use of a piece of land into some other use. Specifically for
the DAR, land use conversion refers to the change from agricultural to non- agricultural land use
(residential, commercial, industrial, etc.). From a more technical perspective, conversion is defined as
the act of authoriz ing the change of the current use of a piece of land into some other use.
16.2 DAR's STAND ON CONVERSION
Is the DAR against land use conversion?
No. The DAR recogniz es that land use conversion is necessary, even inevitable in the country's march
to progress. Many agricultural lands will have to be given up in favor of industrial estates, commercial
centers, residential subdivisions, etc. Moreover, CARP is not the only program of Government. Other
important programs on tourism, housing, and industrializ ation, among others, are being pursued and
these all require land. What the DAR is against is indiscriminate and wasteful land use conversion. What
the DAR wants is to direct land use conversion such that the productive agricultural lands are preserved
for agriculture and the other programs are implemented in the marginal agricultural areas.
It should be noted that agriculture can be carried out only in certain types of land. Thus, prime agricultural lands should rightfully be considered a finite natural resource, further
depletion of which would threaten national food security. In contrast, housing and industrializ ation, for example, require land merely for space and may therefore be
implemented in lands marginal for agriculture.
When conversion of agricultural lands coincides with the objectives of the Comprehensive Agrarian Reform Law to promote social justice, industrializ ation, and the optimum
use of land as a national resource for public welfare, it shall be pursued in a speedy and judicial manner.
16.3 DAR's LEGAL MANDATE
What is the DAR's legal mandate in land use conversion?
Executive Order No. 129- A, Section 4 mandates the DAR to "approve or disapprove the conversion, restructuring or readjustment of agricultural lands into non-agricultural uses".
Section 5 of the same EO authoriz es the DAR to "have exclusive authority to approve or disapprove conversion of agricultural land for residential, commercial, industrial, and other
land uses as may be provided for by law".
Section 65 of RA 6657 likewise empowers the DAR to authoriz e under certain conditions, the reclassification or conversion and the disposition of lands awarded to agrarian
reform beneficiaries.
Finally, Section 4 of Memorandum Circular No. 54, Series of 1993 of the Office of the President, provides that "action on application for land use conversion on individual
landholdings shall remain as the responsibility of the DAR, which shall utilize as its primary reference, documents on the comprehensive land use plans and accompanying
ordinances passed upon and approved by the local government units concerned, together with the National Land Use Policy, pursuant to RA No. 6657 and EO-129-A."
What is the Department of Justice Opinion No. 44 and how does this affect DAR's authority to approve or disapprove conversions?
Under the Department of Justice Opinion No. 44, Series of 1990, a parcel of land is considered non- agricultural and, therefore, beyond the coverage of CARP if it has
been classified as residential, commercial, or industrial in the City or Municipality Land Use Plan or Zoning Ordinance approved by the Housing and Land Use Regulatory
Board (HLURB) before 15 June 1988, the date of effectivity of CARL.
Under this Opinion, a parcel of land which is planted to coconut cannot be covered by CARP if it has been reclassified into the town's industrial z one prior to 15 June 1988.
If a parcel of land is covered by this DOJ opinion, must its landowner still file an application for conversion with the DAR?
No. All lands falling under this category, i.e., those lands already classified as commercial, industrial or residential before 15 June 1988 no longer need any conversion
clearance. What the landowner or his duly authoriz ed representative needs is an exemption clearance from the DAR. Application for such clearance should be filed with the
Regional Office of the DAR where the land is located. (The procedures and requirements are detailed in AO No. 06, Series of 1994).
What policy guidelines govern land use conversion?
To operationaliz e the provisions of various laws, the Department of Agrarian Reform has issued several policy guidelines to regulate land use conversion. The latest,
Administrative Order No. 12, Series of 1994, "Consolidated and Revised Rules and Procedures Governing Conversion of Agricultural Lands to Non-Agricultural Uses", now
consolidates and revises all existing implementing guidelines issued by the DAR, taking into consideration other Presidential Issuances and national policies related to land
use conversion.
Thus, AO No. 12- 94 repeals AO Nos. 8 and 15, Series of 1990 and 1988, General Order No. 01, Series of 1989, AO Nos. 15, 16, and 18, Series of 1989, AO No. 07, Series of
1992 and amends AO Nos. 1 and 2, Series of 1990.
The provisions of this latest Administrative Order, shall however, be applicable only to all application filed on or after its date of effectivity on 10 November 1994. All other
applications filed previous to this AO shall be governed by the pertinent administrative orders or issuances in force at the time of the filing of the applications, and shall be
processed accordingly.
On the other hand, conversion for selected Regional Agro- Industrial Centers, Tourism Development Area and sites for socializ ed housing shall be processed under Joint
NEDA- DAR Memorandum Circular No. 01, Series of 1993 issued pursuant to Executive Order No. 124, Series of 1993 of the Office of the President.
16.4 DAR's ROLE IN CONVERSION
Operationally, what is the DAR's role in land use conversion?
Aside from being the final approving authority, the DAR basically performs the following functions:
a.
b.
c.
Determines whether or not the application should be approved based on the criteria set for land use
conversion;
d.
Ensures that the potential agrarian reform beneficiaries are consulted on the proposed land use
conversion and are properly given their disturbance compensation and other benefits;
e.
f.
Together with the DOJ, monitors illegal conversions and recommends and files criminal cases
against landowners and developers who undertake illegal conversions.
16.5
Owners of private agricultural lands or other persons duly authoriz ed by the landowner;
b.
Farmer beneficiaries of the Agrarian Reform Program after the lapse of five (5) years from award, reckoned from the date of registration of their landholdings, and who
have fully paid their obligations and are qualified, or persons duly authoriz ed by them.
c.
If at the time of the application, the land still falls within the agricultural z ones but:
a.
the land has ceased to be economically feasible and sound for agricultural purposes, as certified by the Regional Director of the Department of Agriculture (DA); or
b.
the locality has become highly urbaniz ed and the land will have a greater economic value for residential, commercial or industrial purposes, as certified by the local
government unit.
3.
If the city/municipality does not have a comprehensive development plan and z oning ordinance duly approved by HLRB/SP but the dominant use of the area
surrounding the land subject of the application for conversion is no longer agricultural, or if the proposed land use is similar to; or compatible with the dominant use of the
surrounding areas as determined by the DAR.
In all cases, conversion shall be allowed only if the DENR issues a certification that the conversion is ecologically sound.
May conversion be granted for lands covered by a notice of acquisition?
No. No application for conversion shall be given due course if the subject land has been covered by any of the following:
a.
b.
c.
All irrigated lands where water is available to support rice and other crop production.
2.
All irrigated lands where water is not available for rice and other crop production but within areas programmed for irrigation facility rehabilitation by the Department of
Agriculture (DA) and the National Irrigation Administration (NIA).
3.
All irrigable lands already covered by irrigation projects with firm funding commitments at the time of the application for land use conversion or reclassification.
the average of the annual gross value of the harvest on their actual landholdings during the last five (5) preceding calendar years.
In addition to ensuring that the ARBs are properly paid the disturbance compensation, the DAR shall exert all efforts to see to it that free homelots and assured employment for
displaced beneficiaries are provided by the applicant/developer.
Are farmworkers also entitled to disturbance compensation?
Yes. The DAR rules in AO 01- 90 that payment of disturbance compensation is not limited to tenant who will be displaced but also includes farmworkers.
What shall the DAR do in case the ARBs are asking for a disturbance compensation above the level
prescribed by law?
The DAR's principal responsibility in such case is to explain the provisions of the law to the farmers. The
DAR may try to persuade the parties, particularly the landowner, to a compromise but any increase
beyond the legal requirement is at the discretion of the landowner.
May conversion be granted for any proposed project?
No. To prevent circumvention of coverage under the CARP, conversion shall be granted only upon
evidence that the project to be established therein is viable and beneficial to the community affected.
How fast should the project be implemented?
Again to prevent circumvention of CARP, the land development phase of the project should be completed
within one year from the issuance of the Order of Conversion where the area is five hectares or less.
Should the area exceed five hectares, an additional year shall be allowed for every five hectares or a
fraction thereof but in no case shall the completion of development extend beyond five years from the
issuance of the Order of Conversion. Thus, a twelve (12) hectare area may be developed within three years, but a 50- hectare landholding should be developed within five (5)
years.
May the DAR cancel or withdraw its approval for land use conversion?
Yes. The DAR may cancel or withdraw authoriz ation for land use conversion, based on the following grounds:
a.
Misrepresentation or concealment of material facts in the application, e.g. capacity of the developer to undertake the project;
b.
Failure to implement and complete the land development of the area within the specified time; and
c.
Any other violation of the rules and regulations which are material to the grant of the conversion order.
What will happen to the lands covered by disapproved petitions for conversion or cancelled or withdrawn conversion order?
Lands covered by a petition for conversion which had been disapproved or those covered by a conversion order which had been cancelled or withdrawn shall be placed
under CARP compulsory coverage, in accordance with the schedule of implementation prescribed in Section 7 of RA 6657 and be distributed to all qualified beneficiaries.
Where should the application for conversion be filed and what are the procedures to be followed?
Under the new guidelines, while forms can be obtained from any of the field offices, filing should be done at the Regional Office with the DAR Regional Center for Land Use
Policy, Planning and Implementation (RCLUPPI). The application should contain the documentary requirements enumerated in Section 7 of AO- 12, Series of 1994. Application
with incomplete documents will not be acted upon and the applicant will be informed accordingly.
There are also new procedures to be followed which clearly distinguish the role of various offices.
1.
The Regional Center for Land Use Policy, Planning and Implementation (RCLUPPI):
receives the application and reviews the required documents for completeness and compliance with all the requisites;
sends Notice of Land Use Conversion to the DAR Municipal Office (DARMO) for posting;
conducts field investigation and dialogues with affected parties and validates information in the documents;
*
prepares land use conversion folder for every application attaching all the required documents submitted by the applicant and endorse it to the Center for Land Use
Policy, Planning and Implementation (CLUPPI) through the Regional Director, except:
applications for conversion involving five (5) hectares or less of land that are within the non- agricultural z one per Land Use Plan approved by the HLRB/Sangguniang Bayan
which shall be submitted to the Regional Director.
Subsequent applications by the same landowners or his representative, however, on a portion of the same shall be forwarded to CLUPPI for resolution.
2.
Approves or disapproves applications covering lands within the non- agricultural z ones with areas of five (5) hectares or less on an aggregate or project basis;
Forwards applications already acted upon to the RCLUPPI for proper disposition;
Submits monthly report on approved or disapproved applications, including pending applications to the CLUPPI, copy furnished the DARPO and DARMO.
3.
reviews and evaluates all land use conversion folders received from RCLUPPI;
*
whenever necessary, conducts field investigation on the area and holds dialogues with government officials and entities, accredited NGOs and affected farmers and
farmworkers with the assistance of the MARO;
*
for lands fifty (50) hectares or less, prepares the draft order recommending approval or denial and forwards the same to the Undersecretary for Policy and Planning
who shall act on it within 45 working days from the date of receipt of folder from the RCLUPPI;
*
for areas above 50 hectares, prepares fact sheet and accomplishes the findings and recommendations and forwards these to the PARC Land Use Technical
Committee (PLUTC) for further review within ten (10) days from receipt of the folder from RCLUPPI;
*
submits quarterly report on the status of all applications to the Secretary, through the Undersecretary for PPO, copy furnished the PARC Secretariat.
4.
*
reviews and approves or disapproves application for conversion of lands not exceeding fifty (50) hectares within five (5) working days from receipt of the folder from
CLUPPI;
*
5.
*
reviews completeness and consistency of all folders received from CLUPPI, requires submission of additional documents or information and conducts field
investigation (if necessary);
*
recommends approval or disapproval of applications for conversion of lands above fifty (50) hectares and forwards the same to the Secretary for his consideration.
6.
DAR Secretary:
approves or disapproves land use conversion applications involving above 50 hectares within five (5) working days from receipt of folder; and
What is the recourse of an applicant or any aggrieved party who does not agree with the Regional Director's decision?
A motion for reconsideration of the decision of the Regional Director can be filed within fifteen (15) days from receipt of the order or decision. DCIEac
Running of the period is suspended once the motion is filed. If the motion is denied, the aggrieved party can still make an appeal to the DAR Secretary.
An appeal to the Secretary shall be made in the form of a memorandum and upon payment of P500.00 as appeal fee.
On the other hand, appeal from the decision of the Undersecretary shall be made to the Secretary, and from the Secretary to the Office of the President or the Court of
Appeals, as the case may be. The mode of appeal/motion for reconsiderations, and the appeal fee, from the Undersecretary to the Office of the Secretary shall be the same
as that of the Regional Director to the Office of the Secretary.
Are there mechanisms installed to ensure that the terms and conditions of the approved conversion are complied with?
Yes, there will be monitoring of compliance. The RCLUPPI shall monitor compliance by the applicant/developer based on the terms and conditions stipulated under AO No.
12- 94, including the required posting of the approved order in a conspicuous place of the project area. The AO provides that failure to post such notice in the project area
shall be a ground for the suspension of the development of the area and for possible cancellation of the conversion order. The RCLUPPI shall submit monthly reports to the
Undersecretary for Policy and Planning through the CLUPPI of all land use conversion transactions, copy furnished the DARPO and the DARMO.
In turn, the CLUPPI shall evaluate the reports submitted by the RCLUPPI and render quarterly reports on the status of all land use conversion to the Secretary, copy furnished
the PARC Secretariat.
16.6 LGU's AUTHORITY TO RECLASSIFY
Does RA 7160, otherwise known as the Local Government Code of 1991 give the cities and municipalities the authority to convert agricultural lands to non-agricultural uses?
No, what the Code provides is the authority of cities and municipalities to reclassify lands into uses within their jurisdiction subject to certain limitations and conditions.
How does reclassification differ from land use conversion?
Reclassification is the act of specifying how agricultural lands shall be utilized for non- agricultural uses such as residential, industrial, commercial, as embodied in the land use
plan. It also includes the reversion of non- agricultural lands to agricultural use. On the other hand, land use conversion is the actual change of agricultural land to non-agricultural
uses.
Although reclassification and conversion are similar in that they both determine whether a parcel of land should be used for agricultural or other purposes, they are different in
approach reclassification is done through the town planning process taking into account the needs of the inhabitants for space for housing, industrial, commercial and other
non- agricultural uses, while conversion goes through the DAR's evaluation process which takes into account the tenants and farmworkers, if any, on the landholding, the
ascertainment of disturbance compensation, and on who will pay said disturbance compensation. Furthermore, although land reclassification can be indicative of which
agricultural areas can be converted to non- agricultural uses, it does not involve an actual change in land use.
What agencies are involved in land reclassification?
Land reclassification is a power exercised by municipal or city governments through the town planning process, subject to review and approval by the Provincial Sanggunian
through the Provincial Land Use Council (PLUC). DAR's participation is in the issuance of a certification that lands for reclassification are either not distributed, not covered by a
Notice of Coverage, or not voluntarily offered for coverage under CARP.
What does the Local Government Code provide with respect to land reclassification?
Section 20 of RA 7160 and Malacaang Memo Circular No. 54 dated 08 June 1993 prescribing the guidelines governing Section 20, state that a city or municipality may,
through an ordinance passed by the Sanggunian after conducting public hearings, authoriz e the reclassification of agricultural lands and provide for the manner of their
utiliz ation or disposition in the following case:
a.
when the land ceases to be economically feasible and sound for agriculture as certified by the DA; or
b.
where the land shall have substantially greater economic value for residential, commercial, or industrial purposes.
The reclassification shall be based on the following percentage of the total agricultural land area at the time of the approval of the Code:
o
15%
10%
5%
In addition, the following types of agricultural lands shall not be covered by the said reclassification:
a.
b.
agricultural lands already issued a notice of coverage or voluntarily offered for coverage under CARP;
c.
agricultural lands identified under Malacaang AO No. 20- 92 and MC 54 as non- negotiable for conversion:
1.
All irrigated lands where water is available to support rice and other crop production;
2.
All irrigated lands where water is not available for rice and other crop production but within areas programmed for irrigation facility rehabilitation by the Department of
Agriculture (DA) and the National Irrigation Administration (NIA).
3.
All irrigable lands already covered by irrigation projects with firm funding commitments at the time of the application for land use conversion or reclassification.
Is the percentage ceiling on the land area which the LGUs can reclassify absolute?
No, the President may, when public interest so requires and upon recommendation of the National Economic and Development Authority (NEDA) authoriz e a city or
municipality to reclassify lands in excess of the limits as cited above.
What are the requirements and procedures for reclassification?
a.
The city or municipal development council shall recommend to the Sangguniang Panglunsod or Sangguniang Bayan, as the case may be, the reclassification of
agricultural lands within its jurisdiction.
b.
Before enacting the ordinance reclassifying agricultural lands, the Sanggunian concerned must first secure the following certificates:
1.
Certification from DA indicating the total area of existing agricultural lands in the city or municipality, that such lands are not classified as non- negotiable for conversion
or reclassification; and that the land has ceased to be economically feasible and sound for agricultural purposes.
2.
Certification from DAR indicating that such lands are not distributed, or not covered by a notice of coverage or not voluntarily offered for coverage under CARP.
c.
The application shall be submitted to the HLRB which upon receipt shall conduct initial review to determine if:
1.
the city or municipality has an existing comprehensive land use plan reviewed and approved in accordance with Executive Order No. 72 (1993); and
2.
the proposed reclassification complies with the limitations prescribed under Section 1 of Memo Circular No. 54.
d.
e.
Upon receipt of the required certification from the government agencies, the Sanggunian concerned may now enact an ordinance authoriz ing the reclassification of
agricultural lands and providing for the manner of their utiliz ation or disposition.
After the enactment of the ordinance reclassifying the land, does this mean the agricultural land can now be converted for non-agricultural uses?
No. Approval of applications for land use conversions remains the responsibility of DAR. Hence, individual landholders of the affected areas should still file an application for
conversion. DAR shall utiliz e as its primary reference in deciding on the application, the comprehensive land use plans, and the ordinance passed upon and approved by the
Sanggunian, together with the National Land Use Policy.
CHAPTER 17
LAND TRANSACTION
17.1
RA 6657 contains several specific provisions on land transactions. They are the following:
a.
Section 6 provides that upon effectivity of the law, any sale, disposition, lease, management contract or transfer of possession of private lands executed by the original
landowner in violation of the Comprehensive Agrarian Reform Law (CARL) shall be null and void.
However, those transactions executed prior to the enactment of the law shall be valid if registered with the Register of Deeds within a period of three (3) months after the
effectivity of the law, or on 13 September 1988;
b.
Section 70 allows the sale or disposition of agricultural lands retained by a landowner provided that the total landholding, including the land being acquired by the
buyer/transferee shall not exceed the landholding ceiling of five (5) hectares, subject, however, to the right of pre-emption and/or redemption of tenant/lessee under Sections 11
and 12 of RA 3844, as amended
c.
Section 73 prohibits the sales, transfer, conveyance or change of the nature of lands outside of
urban centers and city limits either in whole or in part after the effectivity of RA 6657;
The same section also prohibits the sale, transfer or conveyance by a beneficiary of the right to use or
any other usufructuary right over the land he/she acquired by virtue of being a beneficiary, in order to
circumvent the provisions of CARL;
d.
Section 27 of RA 6657 further provides that the lands acquired by beneficiaries may not be sold,
transferred or conveyed except through hereditary succession or to the government or to other qualified
beneficiaries for a period of ten 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; and
e.
Presidential Decree No. 27 originally prohibited the transfer of title to land acquired pursuant to
this Decree except by hereditary succession or to the government in accordance with the provisions of PD 27, the Code of Agrarian Reform and other existing laws and
regulations.
However, Section 6 of Executive Order No. 228 now allows the transfer of ownership of lands acquired by farmer- beneficiaries after full payment of amortiz ation.
What are the relevant AOs on land transaction?
a.
Administrative Order No. 01, Series of 1989 entitled "Rules and Procedures Governing Land Transactions" provided the implementing guidelines for RA 6657's provisions
on land transaction.
b.
Administrative Order No. 04, Series of 1994 entitled "Guidelines on the Development of Agro-Tourism Areas in Accordance with the Tourism Master Plan".
Under this new AO, DAR allows in meritorious cases, the lease or joint venture arrangement of lands acquired by agrarian reform beneficiaries under CARP for agro- tourism
development purposes. This is in line with the general objective of agrarian reform in terms of uplifting the quality of life of the ARBs. Guidelines and safeguards should,
however, be adhered to strictly.
17.2
What are the conditions which must be present to allow lease or joint venture arrangements for agro-tourism development involving lands distributed under CARP?
The following conditions must be present:
1.
The area has been identified by government as priority development area under the Medium Term Philippine Development Plan, or certified by the Department of
Tourism as a priority area for tourism development;
2.
The dominant use of the area should still be agricultural such that the area to be developed for tourism shall be less than 50% of the total area subject to CARP.
Irrigated or irrigable lands are further ineligible for these purposes;
3.
The agricultural area of the project shall be continuously maintained by the ARBs who shall supply the tourism project with agricultural products;
4.
The ARBs or their direct descendants shall be given preference in employment in the tourism project;
5.
All improvements related to tourism shall accrue to the ARBs or their association at the expiry of the lease period;
6.
Profit- sharing and other benefits may be negotiated by DAR in behalf of the ARBs, depending on the exigencies of the situation;
7.
The lease agreement shall specify the time frame for development of the subject property but not to exceed five (5) years reckoned from the date of approval of the
lease or joint venture agreement;
8.
The agreements shall contain provisions for the violations of the agreements, including cancellations, penalties/sanctions and the like within the ten- year period
2.
Lease to a responsible government entity, who in turn may sublease the property to the investor/developer;
3.
Lease back to the former landowner, who in turn will develop the area for tourism purposes; or
4.
Joint venture agreement whereby ARB's lease rights shall be exchanged for shares of stocks, provided the ARBs shall organiz e into a farmers cooperative.
17.3
A vendee bought a parcel of agricultural land consisting of fifty (50) hectares prior to 15 June 1988. However, the deed of sale was not registered within the three-month period as
provided for in Section 6 of RA 6657. The vendee now wants to have the transaction registered and is willing to have the land covered by CARP. Should the ROD register the
transaction?
Yes, the transaction shou be registered even i lbeyond
l the prescribed perm
oD. R
c.
Those executed in favor of a person or persons not qualified to acquire land under Section 22 of RA 6657;
d.
Sale, transfer, conveyance or change of nature of land outside of urban centers and city limits either in whole or in part after 15 June 1988, except as provided for
under the rules on land conversion; and
e.
Sales, transfer or conveyance by an ARB of the right to use or any other usufructuary right over the land he acquired by virtue of being a beneficiary in order to
circumvent the law.
What are the transactions that may be registered with the Register of Deeds without clearance from the DAR?
The following are the transactions that can be registered without clearance from the DAR:
a.
Deed of extra- judicial partition of the property of a deceased who died before 15 June 1988;
b.
Deed of partition of property owned in common by co- owners prior to 15 June 1988;
c.
d.
CHAPTER 18
PUBLIC LANDS
18.1
2.
3.
does not own other landholdings, the aggregate area of which does not exceed the limits allowed for the particular type of public land application;
4.
What are the procedures followed in the distribution of public A & D lands to qualified applicants?
1.
Filing of public land application shall be done at the Community Environment and Natural Resources Office (CENRO) having jurisdiction over the subject land. (Note:
only lands covered by approved surveys may be the subject of a public land application).
2.
Processing of the application, including verification of qualifications and compliance with all the requirements of residence, cultivation, payment of required fees, etc.,
are done at the CENRO and the Provincial Environment and Natural Resources Office (PENRO) levels.
3.
Signing of the land patent by the PENRO (up to five hectares for homestead and free patents), and by the Regional Environment Director (RED) (up to ten hectares)
and by the DENR Secretary, if in excess of ten hectares.
18.2
ISFP involves the issuance of long- term tenurial agreements through Certificates of Stewardship
Contracts or Community Forest Stewardship Agreements effective for twenty (25) years renewable for
another 25 years and the provision of technical, social, material and other support services to individual
forest occupants and forest communities. With these support services, the DENR hopes to reforest
denuded lands to improve the socio- economic conditions of the occupants.
What is the maximum land size which can be availed of by qualified applicants under ISFP?
Seven (7) hectares shall be the maximum siz e of land that can be availed of under ISFP.
18.3
SETTLEMENT AREAS
Do the guidelines for public A & D lands suitable to agriculture apply to DAR settlement areas?
No. All DAR Settlement Projects covered by a Presidential Proclamation issued before the effectivity of
RA 6657 are deemed to have been classified as alienable and disposable under the powers of the
Chief Executive to classify lands of the public domain and by virtue of the expressed provisions in the
proclamation authoriz ing the DAR to dispose of the lands described in such proclamation.
What rules govern the manner and mode of disposition and titling of lots in the DAR settlement projects?
a.
Administrative Order No. 09, Series of 1989 entitled "Rules and Procedures Governing Titling and Distribution of Lots in DAR Settlement Projects"; and
b.
Administrative Order No. 01, Series of 1992 entitled "Revised Rules and Procedures Governing the Disposition of Homelots and Other Lots in Barangay Sites and
Residential, Commercial and Industrial Lots in Town Sites Within DAR Settlement Projects and Similar Other Areas Under DAR Jurisdiction".
How much should the ARBs pay for lands distributed in DAR settlement areas?
None. All lots (agricultural or non- agricultural) shall be distributed free of cost. No survey fees or other costs relative to the distribution of the land shall be charged to the
beneficiary.
What are the functions of the MARO under these procedures?
1.
a.
Review and evaluate the list of allocatees and conduct lot verification to determine whether the ARB allocatees still occupy and till the lots covered by the Certificates
of Allocation;
b.
Require the occupant/tiller to accomplish the Farmer Beneficiary Application Form (SP Form No. 01);
2.
Evaluate application forms and recommend appropriate action. Recommendation shall be based on the following guides:
b.
If deceased but the heirs are actual cultivators/occupants: Issue CLOA to qualified heirs
c.
d.
If occupying the wrong lot: Issue CLOA for lot actually occupied and cancel CA for the corresponding lot
e.
If absentee CA holder: Consider land covered by CA abandoned and apply procedures for cancellation of allocation
If applicant has no CA but is a qualified actual occupant/transferee: Issue CLOA for not more than three hectares of his/her own choice and preference. Area in excess shall be
distributed with preference to his/her qualified children.
3.
Consolidate SP Form No. 1 and prepare Summary FB Data Sheet (SP Form No. 02) for those applicants recommended for issuance of CLOA. This shall constitute the
Land Distribution Folder.
4.
5.
Prepare a summary list of vacant and unallocated lots and lots with certificates of allocation recommended for cancellation.
Absence of the settler/allocatee from the settlement for more than six (6) months without written permission of the DAR;
2.
Transfer of rights by transferor without written consent and approval of the DAR Regional Director concerned;
3.
4.
Failure to cultivate the lot for a period of more than six (6) consecutive months from the date of allocation of said lot; and
5.
landless;
2.
3.
Actual occupant/tiller who is at least 18 years of age or head of the family at the time of filing of application; and
4.
Has the willingness, ability and aptitude to cultivate and make the land productive.
2.
3.
4.
Returnees/surrenderees; and
5.
Homelot
refers to a parcel of land which is intended for farm residence in a barangay site.
Residential Lot
refers to a parcel of land which is intended for residence in a town site.
2.
At least 15 years of age or head of the family at the time of filing of application; and
3.
Applicant or his/her spouse is not the owner- awardee or allocatee of another homelot, residential, commercial or industrial lot.
What is the award ceiling for such types of lands within settlement areas?
A qualified applicant is entitled to acquire only one homelot or one residential/commercial or industrial lot with an area not more than one thousand (1,000) square meters.
However, an awardee or allocatee of a homelot or residential lot may still be allowed to acquire one commercial or industrial lot following the provisions of AO No. 01, Series
of 1992.
What are the modes of disposition of homelots and other types of lots?
1.
Homelots and residential, commercial and industrial lots shall be disposed of by direct sale to qualified actual occupants. If the occupant is not qualified, the lot may
be sold to the qualified members of the family. If there is none, then the lot shall be considered vacant and shall be disposed of.
2.
Vacant homelots in barangay sites shall be disposed of through public raffle to qualified applicants.
3.
Vacant residential, commercial and industrial lots shall be disposed of through public bidding, to the highest qualified bidder. However, no bid should be less than the
appraised value of the lot.
4.
Lots allotted to or intended for public use, whether within barangay sites or town sites shall be turned over by the DAR to the particular government entity or agency
concerned.
5.
An allocatee occupying the lot allocated or awarded to him/her before the effectivity of said AO 01- 92 shall be issued a CLOA upon payment of the cost of the land.
6.
An allocatee or awardee occupying a different lot allocated or awarded to him/her before effectivity of the above mentioned AO shall be awarded the correct lot and
issued a CLOA upon full payment the lot.
7.
Awards/allocations of absentee beneficiaries shall be cancelled and the lot shall be awarded and titled to the actual occupants.
18.4 PUBLIC AGRICULTURAL LANDS TURNED OVER BY THE NATIONAL LIVELIHOOD AND
SUPPORT FUND
What rules govern public agricultural lands turned over by the National Livelihood and Support Fund (NSLF)
to the Department of Agrarian Reform for distribution under CARP?
These are governed by Memorandum Circular No. 07, Series of 1993 entitled "Implementing Guidelines
on the Distribution and Titling of the Public Agricultural Lands Turned Over by the National Livelihood and
Support Fund to the Department of Agrarian Reform for Distribution Under the CARP Pursuant to EO 407,
Series of 1990, as Amended by EO 448, Series of 1991 and as Clarified under Memorandum Order No. 107
of the President of the Philippines dated 23 March 1993"
Under MO 107, the DAR and the DENR were directed to jointly determine which areas were classified as
alienable and disposable agricultural lands previous to the effectivity of Proclamation No. 2282 for
disposition by the DAR through the issuance of CLOAs to qualified beneficiaries. DaScHC
Who are the qualified beneficiaries?
1.
In general, the farmer- tiller or actual occupant shall be given preference in the distribution of the lands occupied by him/her provided that the area will not exceed three
hectares per farmer- beneficiary. Areas in excess, if any, may be distributed to the qualified children or relatives of the ARB designated by him/her.
2.
Farmers organiz ation may also be issued collective CLOAs, the total hectarage covered, however, shall not exceed the number of co- owners or members of the
farmers organiz ation multiplied by three, except in meritorious cases approved by the PARC.
3.
Cultural communities or indigenous tribal groups located within the A & D areas with no adverse claims shall be issued collective CLOA in the name of the community
or the tribe concerned, represented by the acknowledged leader. In case the total hectarage will exceed the three hectare award ceiling per member, the approval of the
PARC shall be secured.
What portions shall not be covered?
1.
Lands with adverse claims until the adverse claims are resolved administratively or judicially.
2.
Parcels or lots already titled, except when their area exceeds the five hectare retention limit, in which case they shall be covered following the schedule of priorities.
3.
Parcels or lots covered by public land applications filed with the DENR or the DA. The applicant concerned shall be allowed to pursue the application with the DENR.
Applicants who wish to instead acquire their lots through CARP may be allowed to do so provided that they present proof that they have already requested the DENR to cancel
or reject their applications and that they possess all the qualifications of an ARB.
4.
Lands which have been proclaimed as reservations in favor of other government agencies or instrumentalities. Portions which are not being used for the purpose of the
reservation or not needed by the agency or instrumentality concerned may be acquired under separate negotiations initiated by the DAR.
5.
Poblacions, town sites, barangay sites, and similar sites actually used for residential or non- agricultural purposes. Their titling shall be pursued under other
government programs under the responsibility of other government agencies.
6.
All lands utiliz ed as government sites in addition to those lands specified in Section 10 of RA 6657 (on exemptions).
7.
Lands intended for or devoted to public use such as highways, roads, railroads, foreshores, public right of way and other similar uses, as well as lands under bodies
of water such as rivers, creeks, lakes, bays, natural springs, irrigation canals, reservoirs, and similar areas under water.
8.
Lands where the actual occupant or claimant may already be entitled to a free patent under RA 6940 (continuous occupation and cultivation by himself or through his
predecessors- in- interest for at least thirty (30) years prior to 16 April 1990, among other requirements). The claimant may be allowed to perfect his/her rights through the DENR.
However, occupants or claimants who prefer to become ARBs instead shall be included in the CARP if qualified.
9.
All lands that are unclassified or classified as Timberland or Forest Land, National Parks or Mineral Lands, even if occupied and fully cultivated. Instead, the occupants
shall be referred to the DENR for possible inclusion in the ISFP program.
Will these lands be paid for by the beneficiaries?
No, except for the payment of the proportionate cadastral survey costs as determined by the DENR. If such survey cost is not paid by the ARB at the time of the CLOA
issuance, this shall be annotated as a lien on the title.
18.5 LANDS OF THE PUBLIC DOMAIN COVERED BY CANCELLED OR EXPIRED PASTURE LEASE AGREEMENTS (PLAs) AND TIMBER LICENSE AGREEMENTS (TLAs)
PER EO 407
What rules govern the CARP coverage of lands of the public domain covered by expired PLAs and TLAs?
Joint DAR- DENR Administrative Order No. 02, Series of 1992 provided the rules and procedures on the disposition of lands of the public domain covered by cancelled or
expired Pasture Lease Agreements (PLAs) and Timber License Agreements (TLAs), following the provisions of Executive Order No. 407 dated 14 June 1990.
5.
The applicant, assisted by DAR files the application for Certificate of Stewardship (CS) in the prescribed form, together with the certification of the Municipal Agrarian
Reform Officer (MARO) at the DENR/CENRO Office concerned where the area applied for is located; and
6.
The CENRO issues Certificate of Stewardship (CS) for areas up to three (3) hectares.
Are lands under cancelled or expired PLAs and TLAs subjected to titling under CARP?
No, public lands classified as forest lands are inalienable and are distributed only for stewardship and not for titling through the DENR- Forest Management Sector (FMS).
What proof of award to agrarian reform beneficiaries will be issued under expired and cancelled PLAs and TLAs covered by the public domain?
The DENR issues the Certificate of Stewardship Contract (CSC) after a Stewardship Agreement is signed between the beneficiary and the DENR.
Can ARBs acquire title to lands under cancelled or expired PLAs and TLAs?
No. Under the law, these types of lands are inalienable or non- registrable and therefore cannot be titled to the agrarian reform beneficiaries. They are however, covered by a
long term twenty- five (25) year lease contract which is renewable for another 25 years.
Can the DENR through the Forest Management Sector (FMS) refuse to allocate portions of cancelled or expired PLAs and TLAs which are unoccupied and uncultivated to DAR's
selected ARBs?
Yes. The DENR, through the FMS may refuse to allocate, because RA 6657, Section 7, provides that only pastures and agricultural leases already cultivated and planted to
crops shall be covered. This is consistent with the inalienable nature of forest lands.
Can occupant-cultivators within expired or cancelled PLAs and TLAs that are under the ISF program who are not registered as potential ARBs be displaced, ejected or removed?
No. Under the law, actual occupant- tillers are given preferential rights in the distribution of lands of the public domain. They shall not be displaced or removed from the land
they till as long as they are directly working and making their land productive. Qualified occupant- cultivators of public lands, though unregistered, shall be given priority in the
distribution thereof.
In case conflict arises between the rules of DAR and the DENR on the allocation and disposition of ISF lands, which rules will be followed?
The DENR Forest Management Bureau rules will be followed. However, DAR's rules on the screening and selection of ARBs shall be followed.
18.6
LANDS OF THE PUBLIC DOMAIN COVERED BY CANCELLED OR EXPIRED FISHPOND LEASE AGREEMENTS (FLAs) PER EO 407
What rules govern the allocation of cancelled or expired Fishpond Lease Agreement (FLAs)?
What are the main roles of the DAR and DA in the allocation of cancelled or expired FLAs?
The DAR is responsible for the screening and identification of the ARBs. The DA verifies and identifies
through BFAR, fishpond areas covered by FLAs which are already expired or subject to cancellation.
The DA also subsequently processes the applications of ARBs identified by the DAR and issues the
fishpond lease agreements.
What is the order of priority in the determination of ARBs on lands covered by cancelled or expired FLAs?
The ARBs are chosen according to the following order of priority specified in Section 22 of RA 6657:
1.
2.
regular farmworkers;
3.
seasonal farmworkers;
4.
other farmworkers;
5.
6.
7.
Why is the allocation of cancelled or expired FLAs being done by DA-BFAR and not by DAR?
Section 3 of EO 407 specifically provided that the DA and the DENR, in coordination with the DAR shall redistribute and award fishponds, pasture lands and other lands of the
public domain suitable for agriculture, subject of cancelled or amended lease agreements, to qualified agrarian reform beneficiaries identified by the DAR pursuant to Sections
18 and 22 of RA 6657.
Are lands under expired or cancelled FLAs subjected to titling under CARP?
Public lands suitable to agriculture are not subject to titling after 9 November 1972 per Sections 23 and 24 of PD No. 704 because they are disposable only through lease by
the DA- BFAR after that date.
CHAPTER 19
LANDED ESTATES
What are landed estates?
Landed Estates are former haciendas or landholdings of private individuals or corporations which have been acquired by the Government under different laws, for
redistribution and resale to deserving tenants and landless farmers.
What improvements have been made in the procedures for distribution and/or titling of lots, in agricultural
landed estates?
Administrative Order No. 03, Series of 1990, entitled "Revised Rules and Procedures Governing Distribution
and/or Titling of Lots in Landed Estates Administered by DAR" was issued to revise the tedious process
which has resulted in unnecessary delay in the distribution and titling of landed estates to qualified
beneficiaries.
Under this AO, a CLOA shall immediately be issued to the qualified beneficiary, including those with
Deeds of Sale still pending with the DAR, provided that all outstanding accounts of an awardee shall be
annotated at the back of the CLOA and duly registered with the ROD.
Outstanding accounts include amortiz ation payments for the land, farm implements and machineries, if
these are not covered by separate contracts, other loan assistance and accrued interests on overdue
amortiz ation payments and unpaid rentals from 01 January 1988.
What are the terms of payment for the account balances annotated at the back of the CLOA?
Beneficiaries/allocatees whose amortiz ation payments and unpaid rentals do not exceed one thousand pesos (P1,000) have three (3) years starting from the registration of
titles to pay their balances.
Those whose obligations exceed one thousand pesos (P1,000) have five (5) years to pay such obligations.
What will happen if the beneficiaries/allocatees fail to pay such balances?
Failure to pay the obligations annotated at the back of the CLOA shall lead to the forfeiture of the lots in favor of the government for distribution to other qualified
beneficiaries/allocatees.
What are the functions of the MARO under these revised procedures?
1.
a.
Identify areas with approved, incomplete, erroneous and without subdivision surveys. Recommend to the PARO, the completion/correction of subdivision surveys within
a period not to exceed one year from the issuance of AO No. 03, Series of 1990 (date of effectivity 22 June 1990);
b.
Review and evaluate the list of allocatees/awardees and conduct lot verification to determine whether said awardees/allocatees are still occupying and tilling the lots.
Prepare a master list of occupants/claimants with corresponding lot numbers, to be posted simultaneously for a period of 15 days at the barangay hall, MARO Office and the
Municipal Building;
c.
Assist all actual occupants/tillers who have not been issued either an Order of Award (OA), Deed of Sale or Certificate of Land Transfer (CLT) in accomplishing the FB
Application Form;
d.
2.
Evaluate Application Forms and recommend appropriate action. Recommendation shall be based on the following guide:
b.
If deceased but the heirs are actual cultivators/occupants: Issue CLOA to the estate of the deceased or to one of the qualified heirs upon the agreement of the others;
c.
If not actual cultivator/occupant and employs tenants prior to full payment of the cost of the land: Cancel OA/CLT and issue CLOA to qualified actual cultivator/occupant;
d.
If permanently incapacitated: Issue CLOA provided that cultivator/occupant has immediate members of the farm household who could assist him in farming;
e.
If applicant mortgaged or sold his/her right and left the area: Cancel OA/CLT and issue CLOA to qualified actual occupant/tiller;
f.
If occupying the wrong lot: Issue CLOA for lot actually occupied and cancel OA/CLT ;
g.
If absentee OA/CLT holder: Cancel OA/CLT and issue CLOA to qualified actual occupant/tiller.
and has no other supporting documents: Issue CLOA provided occupant is qualified and there is no adverse claimant to the subject lot;
b.
with transfer document (waiver of rights of previous awardee): Issue CLOA if with DAR approval; and if without DAR approval, still, issue CLOA provided occupant is
qualified and there is no adverse claimant;
3.
Prepare Land Distribution Folder for Landed Estates for applicants recommended for issuance of CLOA.
4.
Endorse the LDF to PARO for review and approval as a basis for CLOA preparation.
5.
Prepare a list of vacant and unawarded lots and lots with awards recommended for cancellation.
6.
Post the list of vacant and unallocated lots and lots with awards recommended for cancellation for 15 days at the MARO office and other conspicuous places within the
landed estate.
7.
Identify and prioritiz e the list of farmer- beneficiaries in close coordination with the BARC for consideration in the distribution of available lots.
8.
9.
Absence of the awardee from the landed estate for more than six (6) months without doing any effort to make the land productive;
2.
3.
4.
Failure to cultivate the lot for a period of six (6) consecutive months from the date subject lot was awarded; and
5.
Death of awardee if he/she has no qualified heir. (A.O. No. 3, Series of 1990)
Landless;
2.
3.
Actual occupant/tiller who is at least 15 years of age or head of the family at the time of filing of applicant; and
4.
Has the willingness, ability and aptitude to cultivate and make the land productive.
CHAPTER 20
BARANGAY AGRARIAN REFORM COMMITTEE (BARC)
20.1
What is BARC ?
BARC or Barangay Agrarian Reform Committee is a CARP implementing unit at the barangay level. Its
organiz ation was first mandated by Executive Order No. 229 in 1987 and in 1988 by RA 6657.
Through the organiz ation of the BARCs, the implementation of the CARP will become truly community
based where people at all levels participate in decision making because they are in a better position to
know and understand the realities in the community.
What are the laws governing the organization of BARC ?
Section 19 of EO 229 which enumerated the composition and functions of the BARC; and
Sections 46 and 47 of RA 6657 which further defined BARC functions in addition to those provided in EO
229.
What guidelines provide the procedures for the formation, organization and strengthening of the BARCs?
Administrative Order No. 14, Series of 1990 entitled, "Revised Implementing Guidelines in the Formation,
Organization and Operation of the Barangay Agrarian Reform Committee".
This Administrative Order amended AO 05- 89 to provide detailed set of implementing rules for the formation, organiz ation, and operationaliz ation of the BARC.
20.2
2.
Mediate, conciliate or arbitrate agrarian conflicts and issues that are brought to it for resolution; and
3.
Perform such other functions that the Presidential Agrarian Reform Council (PARC), its Executive Committee, or the DAR Secretary may delegate from time to time.
Assist in the identification of qualified beneficiaries and landowners within the barangay;
2.
Attest to the accuracy of the initial parcellary mapping of the beneficiary's tillage,
3.
4.
5.
6.
Assist the DAR representative in the preparation of periodic reports on CARP implementation for submission to the DAR.
2.
3.
4.
landowners
(4)
(1)
(1)
(1)
It should be noted that the voting members are all residents of the barangay. This residency requirement ensures that agrarian reform implementation will indeed be community
based. Regular activities of the BARC can be better ensured when majority of its members are residents of the community.
Ex-Officio Non-Voting Members:
5.
6.
barangay council
7.
8.
9.
(1)
(1)
(1)
(1)
(1)
What is meant by "proportionate" sectoral representation and why should this principle be followed in the composition of the BARC ?
Proportionate sectoral representation means bigger sectors shall have bigger representation. This ensures democratic participation of the intended beneficiaries of the CARP
and wider participation of farmers in planning, organiz ation and management of agrarian reform activities.
Who comprise the farmer and farmworker beneficiaries sector?
This sector is composed of the following:
landless workers;
share tenants;
agricultural lessees, including ISF beneficiaries; and
amortiz ing owners.
Who compose the non-beneficiary farmer and farmworkers sector?
The non- beneficiary farmers and farmworkers sector is composed of the small owner- cultivators who own and till not more than five (5) hectares of agricultural lands, either by
personal cultivation or with the help of the immediate household.
Since membership in the BARC is based on sectoral representation, i.e., land tenure classification, what sector shall be represented by a farmer leader who is a leaseholder and
farmworker at the same time, or a farmer-beneficiary who is also a member of a farmer organization?
A farmer with mixed tenure shall represent a sector where he/she primarily derives his/her regular income. This consideration is based on the experience that one cannot
compel any individual or a group into action if he/they are not directly affected by the issues or problems being raised.
20.4 BARC OFFICERS
Who are the BARC officers and how are they elected?
There are three elected positions in the BARC. These are the Chairperson, Vice Chairperson, and an Assistant Secretary (The BARC Secretary is automatically the DAR
ARPT).
These three officers are elected by the sectoral representatives the regular voting members. Hence, all BARC officers are residents of the barangay.
The thirteen- member BARC shall form different committees based on need and priority activities. They shall select the committee heads deemed as appropriate.
Can a barangay chairperson be an officer of the BARC even if he is not a beneficiary of the CARP?
Yes. A barangay chairperson may be elected as regular officer (with voting power) of the BARC if he/she
represents any of the four sectors composing the BARC (e.g., ARBs, non- ARBs, farmer organiz ation or
cooperative, or landowners), provided, however that he is not appointed ex- officio member representing
the barangay council.
What is the length of tenure of BARC member official?
The elected BARC representatives will serve a maximum of two (2) years while the BARC officers will
serve at the pleasure of the committee.
When can a BARC member/official be terminated?
A BARC member may be removed by a simple majority vote or upon serving a maximum period of two
years.
Who replaces a terminated BARC member?
A BARC member who is unable to complete his/her term of office for some reasons is replaced by an alternate member who will serve the remaining tenure of the original
member.
20.5 FORMATION OF BARC
Should BARCs be organized in all the barangays nationwide?
No. They should be organiz ed where they are needed. The MARO/ARPT together with partner POs/NGOs should jointly identify and prioritiz e where BARCs should be
organiz ed and/or strengthened.
The BARC Manual established the following criteria:
1.
2.
3.
4.
These criteria are very similar to the criteria set for ARC selection. Given the ARC development thrust of the Department, priority should therefore be given to ARC areas.
When should BARCs be organized?
BARCs are organiz ed or should be reorganiz ed if the community is fully aware of and feels the need for it. BARCs are formed out of the people's willingness to address
agrarian reform issues and problems. Its formation cannot be forced, otherwise, the spirit of volunteerism will not be present. If its formation is forced, the people will perceive it
as a burden and members will expect DAR to financially support them as compensation for their work.
Should a BARC be organized even if there are no farmer organizations, associations or cooperatives in the barangay?
Initial efforts of DAR and partner NGOs should be focused on encouraging the organiz ation of ARBs instead of the formation of a BARC.
What are the processes involved in the organization of the BARC ?
There are four stages in the organiz ation of the BARC. These are:
1.
Pre-Organization Stage. This is the process by which the MARO prepares the sectors concerned
in the organiz ation of BARC. He/she performs the following functions:
a.
b.
c.
identifies the areas where the BARC will be organiz ed in coordination with the FOs/NGOs; and
d.
identifies together with the FO/NGO the respective responsibilities of each sector.
In areas where there is no existing FO/NGO, the MARO takes a more active role in the formation of base
groups.
2.
BARC Organization. When the sectors are fully aware of the need to organiz e BARC, the MARO, together with the FOs and/or NGOs, convene the representatives of
the sectors concerned to discuss with them the CARL, the functions of the BARC, the schedule of the first meeting and the schedule of election of officers. After discussing the
intent of the committee, the election of the BARC officers and the planning workshop are conducted.
3.
BARC Operation and Management. After the BARC is formally organiz ed, the committee prepares plans and mechanisms for the performance of its duties.
4.
Alliance Building. The BARC coordinates with other entities within and outside the community for its identified needs. Simultaneously, it establishes a network to sustain
itself as a people's organiz ation.
20.6 MEDIATION AND CONCILIATION
Is BARC a quasi-judicial body?
No, the BARC is only mandated to mediate and conciliate agrarian disputes at the barangay level. Mediation and conciliation refers to the process whereby the contending
parties are persuaded by the BARC to settle their disputes amicably. The BARC does not render a decision. (See page 48)
What does settlement of disputes at the lowest possible level mean?
The capability of the BARC and the community must be harnessed to resolve local agrarian conflicts at the barangay level and avoid as much as possible passing this
responsibility to outside entities or to higher levels. This will promote the speedy and cost- free administration of justice; alleviate the congestion of court and DARAB dockets,
and develop a sense of commitment among landowner and farmer- beneficiaries to comply with their agreements, thus ensuring the successful implementation of CARP.
As the first structure for conflict management, at what levels will agrarian disputes be resolved?
Agrarian conflicts settlement could be done at the following levels:
1.
2.
3.
BARC en banc.
3.
The BARC Chairperson issues a Notice of Meeting to both the complainant and defendant.
4.
The BARC en banc, panel or the Chairperson then endeavors to have the contending parties agree to an amicable settlement. All agreements are written down and
signed by the contending parties.
How long will the BARC resolve disputes lodged with them?
The BARC shall endeavor to mediate, conciliate and settle agrarian disputes lodged before it within thirty (30) days from the time it takes cogniz ance of the dispute.
What will happen if the BARC fails to resolve agrarian disputes within thirty days?
If the BARC fails to settle the dispute within thirty days, it shall issue a certification that the dispute has not been settled, together with a copy of the proceedings and furnish a
copy to the concerned parties within seven (7) days after the expiration of the 30 day period. This certification must be attested by the BARC Chairperson and endorsed by the
MARO to the PARAD or to the PARO for appropriate action.
Is the MARO allowed to resolve disputes or problems presented before him/her without the presence of the BARC chairman and members?
Yes. The MARO can immediately resolve disputes or problems presented before him/her even in the absence of the BARC Chairperson and its members. Although the BARC
would be the ideal forum for the resolution of disputes and problems, this must not limit or prevent the MARO from performing his/her duties. Delays in the resolution of cases
may result in further complications.
Does the BARC have any jurisdiction over criminal offenses under RA 6657?
No. Only the Special Agrarian Court (a branch of the Regional Trial Court) has the original and exclusive jurisdiction of all criminal offenses under RA 6657 (including petitions
for determination of just compensation for landowners).
CHAPTER 21
DAR ADJUDICATION BOARD
21.1 DARAB JURISDICTION
What is the jurisdiction of the DARAB?
The DARAB has primary and exclusive jurisdiction, both original and appellate, to determine and adjudicate all agrarian disputes involving the implementation of the CARP
under RA 6657, EO Nos. 228, 229, and 129- A, RA 3844 as amended by RA 6389, PD 27 and other agrarian laws and their implementing rules and regulations.
Specifically, such jurisdiction shall include but not limited to cases involving the following:
1.
Cases involving the rights and obligations of persons engaged in the management, cultivation
and use of all agricultural lands covered by the CARP and other agrarian laws;
2.
Cases involving the valuation of land and preliminary determination and payment of just
compensation, fixing and collection of lease rentals, disturbance compensation, amortiz ation payments
and similar disputes concerning the functions of the Land Bank of the Philippines (LBP);
3.
Cases involving the annulment or cancellation of lease contracts or deeds of sale or their
amendments involving lands under the administration and disposition of the DAR or LBP;
4.
Cases arising from, or connected with membership or representation in compact farms, farmers'
cooperatives and other registered farmers' associations or organiz ations, related to lands covered by
the CARP and other agrarian laws;
5.
Cases involving the sale, alienation, mortgage, foreclosure, pre- emption and redemption of
agricultural lands under the coverage of the CARP or other agrarian laws;
6.
Cases involving the issuance, correction and cancellation of Certificates of Landownership Award (CLOAs) and Emancipation Patents (EPs) which are registered with
the Land Registration Authority;
7.
Cases previously falling under the original and exclusive jurisdiction of the defunct Court of Agrarian Relations under Section 12 of Presidential Decree No. 946, except
sub- paragraph (2) thereof and Presidential Decree No. 815; and
8.
Such other agrarian cases, disputes, matters or concerns referred to it by the DAR Secretary.
However, matters involving strictly the administrative implementation of the CARP and agrarian laws and regulations, shall be the exclusive prerogative of and cogniz able by
the DAR Secretary.
Is the rule that the DARAB cannot take cognizance of any agrarian dispute unless there is a certification of the BARC where the land is located that the dispute has not been
successfully settled absolute?
No. Rule III of the DARAB Revised Rules of Procedure allows the DARAB to take cogniz ance of an agrarian dispute even without the BARC certification if:
1.
The dispute does not fall under any of the exceptions enumerated;
2.
The required certification cannot be complied with for valid reasons like the non- existence or non- organiz ation of the BARC or the impossibility of convening it. The
PARO shall conduct mediation and conciliation proceedings and issue a certification to that effect;
3.
It involves resolving and disposing of preliminary incidents related to the case, such as motion for the issuance of status quo orders, temporary restraining orders,
preliminary injunctions and such similar motions necessitating immediate action.
However, the lack of the required certification cannot be made a ground for the dismissal of the action. Every opportunity will be given the complainant to secure the
certification.
What are the exceptions referred to in No. 1 above?
BARC certification shall not be required in the following cases:
1.
Where the issue involves the valuation of land to determine just compensation for its acquisition;
2.
Where one party is a public or private corporation, partnership, association or juridical person, or a public officer or employee and the dispute relates to the
performance of his official functions;
3.
Where the matter at issue involves merely the administrative implementation of agrarian reform law, rule, guideline, or policy; and ScaEIT
4.
Such other cases where the Secretary of Agrarian Reform may determine that the matter at issue is beyond the pale of mediation, conciliation or compromise.
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