THE COMPREHENSIVE AGRARIAN REFORM LAW

Republic Act No. 6657, as amended

I. Introduction.

A. Constitutional Basis

1. Article II, Section 21: The State shall promote comprehensive rural development and agrarian reform.

2. Article XII, Section 1: x x x The State shall promote industrialization and full employment based on sound agricultural
development and agrarian reform, x x x

3. Article XIII, Section 3: x x x The State shall regulate the relations between workers and employers, recognizing the right
of labor to its just share in the fruits of production and the right of enterprises to reasonable returns on investments, and
to expansion and growth.

4. Article XIII, Section 4: The State shall, by law, undertake an agrarian reform program founded on the rights of farmers
and regular farmworkers, who are landless, to own directly or collectively the lands they till or, in the case of other
farmworkers, to receive a just share of the fruits thereof. To this end, the State shall encourage and undertake the just
distribution of all agricultural lands, subject to such priorities and reasonable retention limits as the Congress may pre-
scribe, taking into account ecological, developmental, or equity considerations, and subject to the payment of just
compensation. In determining retention limits, the State shall respect the right of small landowners. The State shall
further provide incentives for voluntary land-sharing.

5. Article XIII, Section 5: The State shall recognize the rights of farmers, farmworkers, and landowners, as well as coopera-
tives, and other independent farmers' organizations to participate in the planning, organization, and management of the
program, and shall provide support to agriculture through appropriate technology and research, and adequate financial,
production, marketing, and other support services.

6. Article XIII, Section 6: The State shall apply the principles of agrarian reform or stewardship, whenever applicable in
accordance with law, in the disposition or utilization of other natural resources, including lands of the public domain
under lease or concession suitable to agriculture, subject to prior rights, homestead rights of small settlers, and the rights
of indigenous communities to their ancestral lands.
The State may resettle landless farmers and farmworkers in its own agriculture estates which shall be distributed to
them in the manner provided by law.

7. Article XIII, Section 8: The State shall provide incentives to landowners to invest the proceeds of the agrarian reform
program to promote industrialization, employment creating, and privatization of public sector enterprises. Financial
instruments used as payment for their lands shall be honored as equity in enterprises of their choice.

B. Declaration of Principles and Policies [Section 2]

It is the policy of the State to pursue a Comprehensive Agrarian Reform Program (CARP). The welfare of the landless
farmers and farmworkers will receive the highest consideration to promote social justice and to move the nation toward
sound rural development and industrialization, and the establishment of owner cultivatorship of economic-size farms as the
basis of Philippine agriculture.

The State shall promote industrialization and full employment based on sound agricultural development and agrarian
reform, through industries that make full and efficient use of human and natural resources, and which are competitive in
both domestic and foreign markets: Provided, That the conversion of agricultural lands into industrial, commercial or
residential lands shall take into account, tillers' rights and national food security. Further, the State shall protect Filipino
enterprises against unfair foreign competition and trade practices.

The State recognizes that there is not enough agricultural land to be divided and distributed to each farmer and regular
farmworker so that each one can own his/her economic-size family farm. This being the case, a meaningful agrarian reform
program to uplift the lives and economic status of the farmer and his/her children can only be achieved through simultaneous
industrialization aimed at developing a self-reliant and independent national economy effectively controlled by Filipinos.

To this end, the State may, in the interest of national welfare or defense, establish and operate vital industries.

A more equitable distribution and ownership of land, with due regard to the rights of landowners to just compensation,
retention rights under Section 6 of Republic Act No. 6657, as amended, and to the ecological needs of the nation, shall be
undertaken to provide farmers and farmworkers with the opportunity to enhance their dignity and improve the quality of
their lives through greater productivity of agricultural lands.

The agrarian reform program is founded on the right of farmers and regular farmworkers, who are landless, to own
directly or collectively the lands they till or, in the case of other farmworkers, to receive a just share of the fruits thereof. To
this end, the State shall encourage and undertake the just distribution of all agricultural lands, subject to the priorities and
retention limits set forth in this Act, taking into account ecological, developmental, and equity considerations, and subject to
the payment of just compensation. The State shall respect the right of small landowners, and shall provide incentive for
voluntary land-sharing.

As much as practicable, the implementation of the program shall be community-based to assure, among others, that the
farmers shall have greater control of farmgate prices, and easier access to credit.

The State shall recognize the right of farmers, farmworkers and landowners, as well as cooperatives and other
independent farmers' organizations, to participate in the planning, organization, and management of the program, and shall
provide support to agriculture through appropriate technology and research, and adequate financial, production, marketing
and other support services.

The State shall recognize and enforce, consistent with existing laws, the rights of rural women to own and control land,
taking into consideration the substantive equality between men and women as qualified beneficiaries, to receive a just share
of the fruits thereof, and to be represented in advisory or appropriate decision-making bodies. These rights shall be
independent of their male relatives and of their civil status.

The State shall apply the principles of agrarian reform, or stewardship, whenever applicable, in accordance with law, in
the disposition or utilization of other natural resources, including lands of the public domain, under lease or concession,
suitable to agriculture, subject to prior rights, homestead rights of small settlers and the rights of indigenous communities to
their ancestral lands.

The State may resettle landless farmers and farm workers in its own agricultural estates, which shall be distributed to
them in the manner provided by law.

By means of appropriate incentives, the State shall encourage the formation and maintenance of economic-size family
farms to be constituted by individual beneficiaries and small landowners.
The State shall protect the rights of subsistence fishermen, especially of local communities, to the preferential use of
communal marine and fishing resources, both inland and offshore. It shall provide support to such fishermen through
appropriate technology and research, adequate financial, production and marketing assistance and other services. The State
shall also protect, develop and conserve such resources. The protection shall extend to offshore fishing grounds of
subsistence fishermen against foreign intrusion. Fishworkers shall receive a just share from their labor in the utilization of
marine and fishing resources.

The State shall be guided by the principles that land has a social function and land ownership has a social responsibility.
Owners of agricultural land have the obligation to cultivate directly or through labor administration the lands they own and
thereby make the land productive.

The State shall provide incentives to landowners to invest the proceeds of the agrarian reform program to promote
industrialization, employment and privatization of public sector enterprises. Financial instruments used as payment for lands
shall contain features that shall enhance negotiability and acceptability in the marketplace.

The State may lease undeveloped lands of the public domain to qualified entities for the development of capital-intensive
 farms, and traditional and pioneering crops especially those for exports subject to the prior rights of the beneficiaries under
this Act.

C. Definition of Agrarian Reform

1. Agrarian Reform means the redistribution of lands, regardless of crops or fruits produced, to farmers and regular farm-
workers 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 arrangement alternative to the physical redistribu-
tion of lands, such as production or profit-sharing, labor administration, and the distribution of stock, which will allow
beneficiaries to receive a just share of the fruits of the lands they work. [Section 3(a) of RA 6657]

2. Distinguished from Land Reform

* Land Reform is the physical redistribution of land such as the program under Presidential Decree No. 27. Agrarian
reform means the redistribution of lands including the totality of factors and support services designed to lift the
economic status of the beneficiaries. Thus, agrarian reform is broader than land reform.

D. RA 6657 is Constitutional

In the case of Association of Small Landowners in the Philippines, Inc. v. Secretary of Agrarian Reform, 1 the Supreme
Court held:

"The case before us presents no knotty complication insofar as the question of compensable taking is concerned. To the
extent that the measures under challenge merely prescribe retention limits for landowners, there is an exercise of the police
power for the regulation of private property in accordance with the Constitution. But where, to carry out such regulation, it
becomes necessary to deprive such owners of whatever lands they may own in excess of the maximum area allowed, there
is definitely a taking under the power of eminent domain for which payment of just compensation is imperative. The taking
contemplated is not a mere limitation of the use of the land. What is required is the surrender of the title to and the physical
possession of the said excess and all beneficial rights accruing to the owner in favor of the farmer-beneficiary. This is definitely
an exercise not of the police power but of the power of eminent domain.

"Classification has been defined as the grouping of persons or things similar to each other in certain particulars and
different from each other in these same particulars. To be valid, it must conform to the following requirements: (1) it must
be based on substantial distinctions; (2) it must be germane to the purpose of the law; (3) it must not be limited to existing
conditions only; and (4) it must apply equally to all the members of the class. The Court finds that all these requisites have
been met by the measures here challenged as arbitrary and discriminatory.

"Equal protection simply means that all persons or things similarly situated must be treated alike both as to the rights
conferred and the liabilities imposed. The petitioner have not shown that they belong to a different class and entitled to a
different treatment. The argument that not only landowners but also owners of other properties must be made to share the
burden of implementing land reform must be rejected. There is a substantial distinction between these two classes of owners
that is clearly visible except to those who will not see. There is no need to elaborate on this matter. In any event, the Congress
is allowed a wide leeway in providing for a valid classification. Its decision is accorded recognition and respect by the courts
of justice except only where its discretion is abused to the detriment of the Bill of Rights.

"It is worth remarking at this juncture that a statute may be sustained under the police power only if there is a

1
175 SCRA 343.
 concurrence of the lawful subject and the lawful method. Put otherwise, the interests of the public generally as distinguished
from those of a particular class require the interference of the State and, no less important, the means employed are
reasonably necessary for the attainment of the purpose sought to be achieved and not unduly oppressive upon individuals.
As the subject and purpose of agrarian reform have been laid down by the Constitution itself, we may say that the first
requirement has been satisfied. What remains to be examined is the validity of the method employed to achieve the Constitu-
tional goal.

"Eminent domain is an inherent power of the State that enable it to forcibly acquire private lands intended for public use
upon payment of just compensation to the owner. Obviously, there is no need to expropriate where the owner is willing to
sell under terms also acceptable to the purchaser, in which case an ordinary deed of sale may be agreed upon by the parties.
It is only where the owner is unwilling to sell, or cannot accept the price or other conditions offered by the vendee, that the
power of eminent domain will come into play to assert the paramount authority of the State over the interest of the property
owner. Private rights must then yield to the irresistible demands of the public interest on the time-honored justification, as
in the case of the police power, that the welfare of the people is the supreme law.

"But for all its primacy and urgency, the power of expropriation is by no means absolute (as indeed no power is absolute).
The limitation is found in the constitutional injunction that "private property shall not be taken for public use without just
compensation" and in the abundant jurisprudence that has evolved from the interpretation of this principle. Basically, the
requirements for a proper exercise of the power are: (1) public use and (2) just compensation.

"[T]he determination of just compensation is a function addressed to the courts of justice and may not be usurped by
any other branch or official of the government. EPZA v. Dulay resolved a challenge to several decrees promulgated by Presi-
dent Marcos providing that the just compensation for property under expropriation should be either the assessment of the
property by the government or the sworn valuation thereof by the owner, whichever was lower.

"With these assumptions, the Court hereby declares that the content and manner of the just compensation provided for
in the afore-quoted Section 18 of the CARP Law is not violative of the Constitution. We do not mind admitting that a certain
degree of pragmatism has influenced our decision on this issue, but after all this Court is not a cloistered institution removed
from the realities and demands of society or oblivious to the need for its enhancement. The Court is as acutely anxious as
the rest of our people to see the goal of agrarian reform achieved at last after the frustrations and deprivations of our peasant
masses during all these disappointing decades. We are aware that invalidation of said section will result in the nullification
of the entire program, killing the farmer's hopes even as they approach realization and resurrecting the specter of discontent
and dissent in the restless countryside. That is not in our view the intention of the Constitution, and that is not what we shall
decree today.

"Accepting the theory that payment of the just compensation is not always required to be made fully in money, we find
further that the proportion of cash payment to the other things of value constituting the total payment, as determined on
the basis of the areas of the lands expropriated, is not unduly oppressive upon the landowner. It is noted that the smaller
the land, the bigger the payment in money, primarily because the small landowner will be needing it more than the big
landowner, who can afford a bigger balance in bonds and other things of value. No less importantly, the government financial
instruments making up the balance of the payment are "negotiable at any time." The other modes, which are likewise avail-
able to the landowner at his option, are also not unreasonable because payment is made in shares of stock, LBP bonds, other
properties or assets, tax credits, and other things of value equivalent to the amount of just compensation."

II. Scope
 A. Lands Covered

1. The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of tenurial arrangement and commodity pro-
duced, ALL PUBLIC AND PRIVATE AGRICULTURAL LANDS as provided in Proclamation No. 131 and Executive Order No.
229, including other lands of the public domain suitable for agriculture: Provided, That landholdings of landowners with
a total area of five (5) hectares and below shall not be covered for acquisition and distribution to qualified beneficiaries.
[Section 4]

a. Agricultural land refers to land devoted to agricultural activity and not classified as mineral, forest, residential,
commercial or industrial land [Section 3(c)].
b. Agricultural activity means the cultivation of the soil, planting of crops, growing of fruit trees, raising of fish,
including the harvesting of such farm products, and other farm activities and practices performed by a farmer in
conjunction with such farming operations done by persons whether natural or juridical [Section 3(b)].

2. Specifically, the following lands are covered by the Comprehensive Agrarian Reform Program:

a. All alienable and disposable lands of the public domain devoted to or suitable for agriculture. No reclassification of
forest or mineral lands to agricultural lands shall be undertaken after the approval of this Act until Congress, taking
into account ecological, developmental and equity considerations, shall have determined by law, the specific limits
of the public domain;

b. All lands of the public domain in excess of the specific limits as determined by Congress in the preceding paragraph;

c. All other lands owned by the Government devoted to or suitable for agriculture; and

d. All private lands devoted to or suitable for agriculture regardless of the agricultural products raised or that can be
raised thereon.

B. Exclusions from the Coverage of CARL

1. Under Section 102, excluded from the coverage of the CARL are lands actually, directly and exclusively used for:

a. Parks;
b. Wildlife;
c. Forest reserves;
d. Reforestation;
e. Fish sanctuaries and breeding grounds;
f. Watersheds and mangroves.

2. Private lands actually, directly and exclusively used for prawn farms and fishponds shall be exempt from the coverage of
this Act: Provided, That said prawn farms and fishponds have not been distributed and Certificate of Land Ownership
Award (CLOA) issued to agrarian reform beneficiaries under the Comprehensive Agrarian Reform Program.
In cases where the fishponds or prawn farms have been subjected to the Comprehensive Agrarian Reform Law, by
voluntary offer to sell, or commercial farms deferment or notices of compulsory acquisition, a simple and absolute
majority of the actual regular workers or tenants must consent to the exemption within one (1) year from the effectivity
of this Act. When the workers or tenants do not agree to this exemption, the fishponds or prawn farms shall be
distributed collectively to the worker-beneficiaries or tenants who shall form a cooperative or association to manage the
same.

2
As amended by Republic Act No. 7881.
 3. Likewise, execluded from the coverage the CARL are lands actually, directly and exclusively used and found to be
necessary for:

a. National defense;
b. School sites and campuses including experimental farm stations operated by public or private schools for educational
purposes;
c. Seeds and seedling research and pilot production center;
d. Church sites and convents appurtenant thereto;
e. Mosque sites and Islamic centers appurtenant thereto;
f. Communal burial grounds and cemeteries;
g. Penal colonies and penal farms actually worked by the inmates; and
h. Government and private research and quarantine centers.

4. All lands with eighteen percent (18%) slope and over which are not developed for agriculture are exempted from the
coverage of CARL.

* An eighteen percent slope is not equivalent to an eighteen degree angle. Eighteen percent slope is obtained by
having a 100 meter run and an 18 meter rise.

5. In the case of Luz Farms v. Secretary of Agrarian Reform,3 the Supreme Court has excluded agricultural Lands Devoted to
Commercial Livestock, Poultry and Swine Raising from the coverage of CARL.

The Supreme Court said:

"The transcripts of the deliberations of the Constitutional Commission of 1986 on the meaning of the word "agricul-
tural," clearly show that it was never the intention of the framers of the Constitution to include livestock and poultry
industry in the coverage of the constitutionally-mandated agrarian reform program of the Government.

"The Committee adopted the definition of "agricultural land" as defined under Section 166 of RA 3844, as lands
devoted to any growth, including but not limited to crop lands, saltbeds, fishponds, idle and abandoned land (Record,
CONCOM, August 7, 1986, Vol. III, p. 11).

"The intention of the Committee is to limit the application of the word "agriculture." Commissioner Jamir proposed
to insert the word "ARABLE" to distinguish this kind of agricultural land from such lands as commercial and industrial
lands and residential properties because all of them fall under the general classification of the word "agricultural." This
proposal, however, was not considered because the Committee contemplated that agricultural lands are limited to
arable and suitable agricultural lands and therefore, do not include commercial, industrial and residential lands (Record,
CONCOM, August 7, 1986, Vol. III, p. 30).

"In the interpellation, then Commissioner Regalado (now a Supreme Court Justice), posed several questions, among
others, quoted as follows:

xxx xxx xxx

"Line 19 refers to genuine reform program founded on the primary right of farmers and farmworkers. I wonder if
it means that leasehold tenancy is thereby proscribed under this provision because it speaks of the primary right of
farmers and farmworkers to own directly or collectively the lands they till. As also mentioned by Commissioner
Tadeo, farmworkers include those who work in piggeries and poultry projects.
I was wondering whether I am wrong in my appreciation that if somebody puts up a piggery or a poultry project
and for that purpose hires farmworkers therein, these farmworkers will automatically have the right to own
eventually, directly or ultimately or collectively, the land on which the piggeries and poultry projects were
constructed. (Record, CONCOM, August 2, 1986, p. 618).
xxx xxx xxx"

3
192 SCRA 51.
 "The question were answered and explained in the statement of the then Commissioner Tadeo, quoted as follows:

xxx xxx xxx

"Sa pangalawang katanungan ng Ginoo ay medyo hindi kami nagkaunawaan. Ipinaaalam ko kay Commissioner
Regalado na hindi namin inilagay ang agricultural worker sa kadahilanang kasama rito ang piggery, poultry at
livestock workers. Ang inilagay namin dito ay farm worker kaya hindi kasama ang piggery, poultry at livestock
workers (Record, CONCOM, August , 1986, Vol. II, p. 621).

"It is evident from the foregoing discussion that Section 11 of RA 6657 which includes "private agricultural lands
devoted to commercial livestock, poultry and swine raising" in the definition of "commercial farms" is invalid, to the
extent that the aforecited agro-industrial activities are made to be covered by the agrarian reform program of the State.
There is simply no reason to include livestock and poultry lands int he coverage of agrarian reform. (Rollo, p. 21).

"PREMISES CONSIDERED, the instant petition is hereby GRANTED. Sections 3(b), 11, 13 and 32 of R.A. No. 6657
insofar as the inclusion of raising of livestock, poultry and swine in its coverage as well as the Implementing Rules and
Guidelines promulgated in accordance therewith, are hereby DECLARED null and void for being unconstitutional and the
writ of preliminary injunction issued is hereby MADE permanent."

III. Schedule of Implementation

A. Period for Implementation [Section 5]

1. The DAR, in coordination with the Presidential Agrarian Reform Council (PARC) shall plan and program the final
acquisition and distribution of all remaining unacquired and undistributed agricultural lands from the effectivity of this
Act until June 30, 2014.

B. Priorities [Section 7]

1. Guiding Principle: In effecting the transfer, priority must be given to lands that are tenanted.

2. Factors to consider in the Implementation

a. Need to distribute lands to the tillers at the earliest practical time;

b. Need to enhance agricultural productivity; and
c. Availability of funds and resources to implement and support the program

3. Phases of Implementation

Phase One: During the five (5)-year extension period hereafter all remaining lands above fifty (50) hectares shall be
covered for purposes of agrarian reform upon the effectivity of this Act. All private agricultural lands of landowners with
aggregate landholdings in excess of fifty (50) hectares which have already been subjected to a notice of coverage issued on
or before December 10, 2008; rice and corn lands under Presidential Decree No. 27; all idle or abandoned lands; all private
lands voluntarily offered by the owners for agrarian reform: Provided, That with respect to voluntary land transfer, only those
submitted by June 30, 2009 shall be allowed: Provided, further, That after June 30, 2009, the modes of acquisition shall be
limited to voluntary offer to sell and compulsory acquisition: Provided, furthermore, That all previously acquired lands
wherein valuation is subject to challenge by landowners shall be completed and finally resolved pursuant to Section 17 of
Republic Act No. 6657, as amended: Provided, finally, as mandated by the Constitution, Republic Act No. 6657, as amended,
and Republic Act No. 3844,as amended, only farmers (tenants or lessees) and regular farmworkers actually tilling the lands,
as certified under oath by the Barangay Agrarian Reform Council (BARC) and attested under oath by the landowners, are the
qualified beneficiaries. The intended beneficiary shall state under oath before the judge of the city or municipal court that
he/she is willing to work on the land to make it productive and to assume the obligation of paying the amortization for the
compensation of the land and the land taxes thereon; all lands foreclosed by government financial institutions; all lands
acquired by the Presidential Commission on Good Government (PCGG); and all other lands owned by the government
devoted to or suitable for agriculture, which shall be acquired and distributed immediately upon the effectivity of this Act,
with the implementation to be completed by June 30, 2012.
Phase Two: (a) Lands twenty-four (24) hectares up to fifty (50) hectares shall likewise be covered for purposes of agrarian
reform upon the effectivity of this Act. All alienable and disposable public agricultural lands; all arable public agricultural lands
under agro-forest, pasture and agricultural leases already cultivated and planted to crops in accordance with Section 6, Article
XIII of the Constitution; all public agricultural lands which are to be opened for new development and resettlement: and all
private agricultural lands of landowners with aggregate landholdings above twenty-four (24) hectares up to fifty (50) hectares
which have already been subjected to a notice of coverage issued on or before December 1O, 2008, to implement principally
the rights of farmers and regular farmworkers, who are landless, to own directly or collectively the lands they till, which shall
be distributed immediately upon the effectivity of this Act, with the implementation to be completed by June 30, 2012; and

(b) All remaining private agricultural lands of landowners with aggregate landholdings in excess of twenty-four (24)
hectares, regardless as to whether these have been subjected to notices of coverage or not, with the implementation to begin
on July 1, 2012 and to be completed by June 30, 2013

Phase Three: All other private agricultural lands commencing with large landholdings and proceeding to medium and
small landholdings under the following schedule:

(a) Lands of landowners with aggregate landholdings above ten (10) hectares up to twenty- four (24)hectares, insofar as the
excess hectarage above ten (10) hectares is concerned, to begin on July 1,2012 and to be completed by June 30, 2013;
and
 (b) Lands of landowners with aggregate landholdings from the retention limit up to ten (10) hectares, to begin on July 1,
2013 and to be completed by June 30, 2014; to implement principally the right of farmers and regular farmworkers who
are landless, to own directly or collectively the lands they till.

The schedule of acquisition and redistribution of all agricultural lands covered by this program shall be made in
accordance with the above order of priority, which shall be provided in the implementing rules to be prepared by the PARC,
taking into consideration the following: the landholdings wherein the farmers are organized and understand ,the meaning
and obligations of farmland ownership; the distribution of lands to the tillers at the earliest practicable time; the
enhancement of agricultural productivity; and the availability of funds and resources to implement and support the program:
Provided, That the PARC shall design and conduct seminars, symposia, information campaigns, and other similar programs
for farmers who are not organized or not covered by any landholdings. Completion by these farmers of the aforementioned
seminars, symposia, and other similar programs shall be encouraged in the implementation of this Act particularly the
provisions of this Section.

The PARC shall establish guidelines to implement the above priorities and distribution scheme, including the
determination of who are qualified beneficiaries: Provided, That an owner-tiller may be a beneficiary of the land he/she does
not own but is actually cultivating to the extent of the difference between the area of the land he/she owns and the award
ceiling of three (3) hectares: Provided, further, That collective ownership by the farmer beneficiaries shall be subject to
Section 25 of Republic Act No. 6657, as amended: Provided, furthermore, That rural women shall be given the opportunity t
o participate in the development planning and implementation of this Act: Provided, finally, That in no case should the
agrarian reform beneficiaries' sex, economic, religious, social, cultural and political attributes adversely affect the distribution
of lands.

C. Exceptions from the Implementation Phases

1. Land acquisition and distribution shall be completed by June 30, 2014 on a province-by- province basis. In any case, the
PARC or the PARC Executive Committee (PARC EXCOM), upon recommendation by the Provincial Agrarian Reform
Coordinating Committee (PARCCOM), may declare certain provinces as priority land reform areas, in which case the
acquisition and distribution of private agricultural lands therein under advanced phases may be implemented ahead of
the above schedules on the condition that prior phases in these provinces have been completed: Provided, That
notwithstanding the above schedules, phase three (b) shall not be implemented in a particular province until at least
ninety percent (90%) of the provincial balance of that particular province as of January 1, 2009 under Phase One, Phase
Two (a), Phase Two (b),,and Phase Three (a), excluding lands under the jurisdiction of the Department of Environment
and Natural Resources (DENR), have been successfully completed. PARC, upon recommendation of the Provincial Agrari-
an Reform Coordinating Committee (PARCCOM), may declare certain provinces or regions as priority land reform areas,
in which case the acquisition and distribution of private agricultural lands therein may be implemented ahead of
schedule. [Section 7]

2. The PARC may suspend the implementation of CARL with respect to ancestral lands for purpose of identifying and
delineating such lands. [Section 9]

IV. Improvement of Tenurial and Labor Relations

 A. Leasehold Tenancy

1. Tenancy in General

a. Definition: Agricultural tenancy is the physical possession by a person of land devoted to agriculture, belonging to
or legally possessed by another for the purpose of production through the labor of the former and of the members
of his immediate farm household in consideration of which the former agrees to share the harvest with the latter or
to pay a price certain or ascertainable, either in produce or in money, or in both [Section 3 of RA 1199, Guerrero v.
CA4]

b. Types of Tenancy Relation

i. Sharehold Tenancy; and
ii. Leasehold Tenancy

2. Leasehold vs. Sharehold Tenancy

* The two tenancy systems are distinct and different form each other. In sharehold, the tenant may choose to
shoulder, in addition to labor, any one or more of the items of contributions (such as farm implements, work animals,
final harrowing, transplanting), while in leasehold, the tenant or lessee always shoulders all items of production
except the land. Under the sharehold system, the tenant and the landholder are co-managers, whereas in leasehold,
the tenant is the sole manager of the farmholding. Finally, in sharehold tenancy, the tenant and the landholder
divide the harvest in proportion to their contributions, while in leasehold tenancy, the tenant or lessee gets the
whole produce with the mere obligation to pay a fixed rental. [People v. Adillo5]

Sharehold Leasehold

Expenses of Production Tenant and Landowner Tenant

Management Tenant and Landowner Tenant

Payment Tenant and landowner divide Tenant gets the whole produce
the harvest in proportion to with the mere obligation to pay
their contributions. rent.

3. Leasehold vs. Civil Lease

* There are important differences between a leasehold tenancy and a civil law lease. The subject matter of leasehold
tenancy is limited to agricultural lands; that of civil law lease may be either rural or urban property. As to attention and
cultivation, the law requires the leasehold tenant to personally attend to, and cultivate the agricultural land, whereas
the civil law lessee need not personally cultivate or work the thing leased. As to purpose, the landholding in leasehold
tenancy is devoted to agriculture, whereas in civil law lease, the purpose may be for any other lawful pursuit. As to the
law that governs, the civil law lease is governed by the Civil Code, whereas leasehold tenancy is governed by special laws.
[Gabriel v. Pangilinan6]

Leasehold Tenancy Civil Law Lease

4
142 SCRA 136.

5
68 SCRA 90.

6
58 SCRA 590.
 Subject Matter Agricultural lands only Both rural and urban properties

Attention and Cultivation Tenant must personally culti- Lessee does not have to per-
vate sonally cultivate

Purpose Agriculture only Any lawful purpose

Governing Law Special laws Civil Code

4. Purpose of the Leasehold Relation: To protect and improve the tenurial and economic status of the farmers in tenanted
lands. [Section 12]

5. Application [Section 12]

a. Tenanted lands under the retention limit; and

b. Tenanted lands not yet acquired under the CARL

B. Production Sharing Plan

1. Application [Section 13]

a. Any enterprise adopting the scheme provided for in Section 32;

b. Any enterprise operating under a production venture, lease, management contract or other similar arrangement;
c. Any farm covered by Section 8 (Private agricultural lands leased by Multinational corporations) and Section 11
(Commercial farming); and
d. Corporate farms pending final land transfer.

2. Period for Compliance: Within ninety (90) days from effectivity of CARL

3. Scheme (Applies to those individuals or enterprises realizing gross sales in excess of five million pesos per annum, unless
the DAR sets a lower ceiling) [Section 32]

a. Three percent (3%) of the gross sales from the production of such lands;
b. Distributed within sixty (60) days of the end of the fiscal year;
c. Treated as additional compensation to regular and other farmworkers of such lands;
d. During the transitory period (before the land is turned over to the farmworker-beneficiaries), at least one percent
(1%) of the gross sales shall be distributed to the managerial, supervisory and technical group; and
e. If profit is realized, an additional ten percent (10%) of the net profit after tax shall be distributed to the regular and
other farmworkers within ninety (90) days of the end of the fiscal year.

V. Registration
 A. Within 180 days from the effectivity of CARL, landowners, natural or juridical, shall file a sworn statement in the assessor's
office the following information:

a. the description and area of the property;

b. the average gross income from the property for at least 3 years;
c. the names of all tenants and farmworkers therein;
d. the crops planted in the property and the area covered by the crop as of June 1, 1987;
e. the terms of mortgages, leases and management contracts subsisting as of June 1, 1987; and
f. the latest declared market value of the land as determined by the city or provincial assessor. (Section 14)

B. The DAR, in coordination with the Barangay Agrarian Reform Committee (BARC) shall register all agricultural lessees, tenants
and farmworkers who are qualifies to be beneficiaries under the CARL. These potential beneficiaries shall provide the
following data:

a. names and members of their immediate farm household;

b. owners and administrators of the lands they work on and the length of tenurial relationship;
c. location and area of the land they work;
d. crops planted; and
e. their share in the harvest or amount of rental paid or wages received.

VI. Private Land Acquisition

 A. Retention Limit [Section 6]

1. Five hectares is the retention limit. No person may own or retain, directly or indirectly, any public or private agricultural
land, the size of which shall vary according to factors governing a viable family-sized farm, such as commodity produced,
terrain, infrastructure, and soil fertility as determined by the Presidential Agrarian Reform Council (PARC), but in no case
shall the retention limit exceed five (5) hectares.

2. Additional three hectares may be awarded to each child, subject to the following qualifications:

a. That the child is at least fifteen (15) years of age; and

b. That the child is actually tilling the land or directly managing the farm.

3. Exceptions to the retention limit of five hectares.

a. Landowners whose lands have been covered by PD 27; and

b. Original homestead grantees or direct compulsory heirs who still own the original homestead at the time of the
approval of CARL, as long as they continue to cultivate said homestead.
C. Provincial, city and municipal government ,units acquiring private agricultural lands by expropriation or other modes
of acquisition to be used for actual, direct and exclusive public purposes, such as roads and bridges, public markets,
school sites, resettlement sites, local government facilities, public parks and barangay plazas or squares, consistent
with the approved local comprehensive land use plan, shall not be subject to the five (5)-hectare retention limit
under this Section and Sections 70 and 73(a) of Republic Act No. 6657, as amended: Provided, That lands subject to
CARP shall first undergo the land acquisition and distribution process of the program: Provided, further, That when
these lands have been subjected to expropriation, the agrarian reform beneficiaries therein shall be paid just
compensation [Section 6-A].

4. Right to choose the area to be retained.

The right to choose the area to be retained, which shall be compact or contiguous, shall pertain to the landowner.
If the land retained is tenanted, the tenant shall have the option to choose whether to remain therein or be a beneficiary
in the same or another agricultural land. In case the tenant chooses to remain in the retained area, he shall be considered
a leaseholder and shall lose his right to be a beneficiary under this Act. In case the tenant chooses to be a beneficiary in
another agricultural land, he loses his right as a leaseholder to the land retained by the landowner. The tenant must
exercise this option within a period of one (1) year from the time the landowner manifest his choice of the area for
retention.

Exemptions to rule on retention limit:

1. Homestead patents
2. LGUs province, municipal, cities: they can acquire agricultural lands more than 5has, provided that these
agricultural lands are and will be used for some public purpose.

B. Procedure

1. Voluntary Land Transfer (VLT) [Section 20]

a. Must be submitted to the DAR within one year from effectivity of the CARl;
b. Must not be less favorable to the transferee than those of the government's standing ; and
c. Shall include sanctions for non-compliance by either party and shall be duly recorded and its implementation
monitored by the DAR.
D. Only those submitted by June 30, 2009 shall be allowed.

2. Compulsory Acquisition [Section 16]

 a. Notice to acquire the land shall be sent to the landowner and the beneficiaries. The notice shall also be posted in a
conspicuous place in the municipal building and the barangay hall of the place where the property is located.
b. Within thirty (30) days from receipt of the written notice, the landowner shall inform the DAR of his acceptance or
rejection of the offer.
c. If the offer is accepted, the LBP pays the landowner and within thirty (30) days, the landowner executes and delivers
a deed of transfer to the Government and surrenders the Certificate of Title and other muniments of title.
d. In case of rejection or failure to reply, the DAR shall conduct summary administrative proceedings to determine the
compensation. If he does concur with the compensation determined by the DAR, he can the matter to the Courts.
e. Payment of the just compensation as determined by the DAR or the Court.
f. Registration with the Register of Deeds for the issuance of Transfer Certificate of Title in the name of the Republic
of the Philippines.
g. Standing Crops: The landowner shall retain his share of any standing crops unharvested at the time the DAR shall
take possession of the land and shall be given reasonable time to harvest the same (Section 28).

C. Compensation

1. Determination of Just Compensation.

In determining just compensation, the cost of acquisition of the land, the value of the standing crop, the current:
value of like properties, its nature, actual use and income, the sworn valuation by the owner, the tax declarations, the
assessment made by government assessors, and seventy percent (70%) of the zonal valuation of the Bureau of Internal
Revenue (BIR), translated into a basic formula by the DAR shall be considered, subject to the final decision of the proper
court. The social and economic benefits contributed by the farmers and the farmworkers and by the Government t o the
property as well as the nonpayment of taxes or loans secured from any government financing institution on the said land
shall be considered as additional factors to determine its valuation [Section 17].

2. Under EO 405 (1990), Land Bank of the Philippines shall be primarily responsible for the determination of the land
valuation and compensation.

3. Mode of Payment [Section 18]

a. Cash under the following scheme:

i. For lands above 50 hectares : 25%

ii. For lands above 24 and up to 50 : 30%
iii. For lands 24 and below : 35%

* In case of VOS, the landowner shall be entitled to an additional 5% cash payment. [Section 19]

b. Balance in any of the following:

i. Shares of stock in government-owned or controlled corporations, LBP preferred shares, physical assets or other
qualified investments;
ii. Tax credits which can be used against any tax liability;
iii. Land Bank of the Philippines Bonds which shall have the following features:
* Market interest rates aligned with 91-day treasury bill rates;
* Ten percent (10%) of the face value of the bonds shall mature every year from the date of issuance until
the tenth year; and
* Transferability and negotiability

c. Set-off

* All arrearages in real property taxes, without penalty or interest, shall be deductible from the compensation to
 which the owner is entitled. [Section 66]

D. Exemptions from Taxes and Fees

1. Transactions under CARL involving a transfer of ownership, whether from natural or juridical persons, shall be exempted
from taxes arising from capital gains. These transactions shall also be exempted from the payment of registration fees,
and all other taxes and fees for the conveyance or transfer thereof; Provided, That all arrearages in real property taxes,
without penalty or interest, shall be deducted from the compensation to which the owner may be entitled. [Section 66]

2. All Registers of Deeds are hereby directed to register, free from payment of all fees and other charges, patents, titles and
documents required for the implementation of CARP. [Section 67]

VII. Land Redistribution

 A. Beneficiaries [Section 22]

Beneficiaries, in their order of priority, are:

1. Agricultural lessees and share tenants;

2. Regular Farmworkers: a natural person who is employed on a permanent basis by an agricultural enterprise or farm
[Section 3(h)];

a. Farmer refers to a natural person whose primary livelihood is cultivation of land or the production of agricultural
crops, livestock and/or fisheries either by himself/herself, or primarily with the assistance of his/her immediate farm
household, whether the land is owned by him/her, or by another person under a leasehold or share tenancy
agreement or arrangement with the owner thereof [Section 3(f)].
b. Farmworker is a natural person who renders service for value as an employee or laborer in an agricultural enterprise
or farm regardless of whether his compensation is paid on a daily, weekly, monthly or "pakyaw" basis. It includes
an individual whose work has ceased as a consequence of, or in connection with, a pending agrarian dispute and
who has not obtained a substantially equivalent and regular farm employment [Section 3(g)].

3. Seasonal farmworkers: a natural person who is employed on a recurrent, periodic or intermittent basis by an agricultural
enterprise or farm, whether as a permanent or an non-permanent laborer, such as "dumaan", "sacada", and the like
[Section 3(i)];

4. Other farmworkers: a farmworker who is not a regular nor a seasonal farmworker [Section 3(j)];

5. Actual tillers or occupants of public lands;

6. Collective or cooperatives of the above beneficiaries; and *This is a juridical person. It is awarded to a cooperative of
beneficiaries.

* Cooperatives shall refer to organizations composed primarily of small agricultural producers, farmers, farmworkers,
or other agrarian reform beneficiaries who voluntarily organize themselves for the purpose of pooling land, human,
technological, financial or other economic resources, and operated on the principle of one member, one vote. A
juridical person may be a member of a cooperative, with the same rights and duties as a natural person [Section
3(k)].

7. Others directly working on the land.

Before any award is given to a farmer, the qualified children of the landowner must receive their three hectare award.

Rural women refer to women who are engaged directly or indirectly in farming and/or fishing as their source of livelihood,
whether paid or unpaid, regular or seasonal, or in food preparation, managing the household, caring for the children, and
other similar activities [Section 3(l)].

Note: Children of the landowners are preferred beneficiaries. The order is really: children, tenants, the farmworkers
(regular/seasonal), dealers, cooperatives, and others directly working on the land. This is the order by which they
should be awarded the property.

As a rule, the award is individually. Awards may be given collectively under the law, and that is only being done when
it is not economically feasible to subdivide the property. That is most of the subdivisions in Mindanao were issued
collectively.

B. Disqualifications of Beneficiaries [Section 22]

1. Beneficiaries under Presidential Decree No. 27 who have culpably sold, disposed of, or abandoned their land;
 2. Beneficiaries guilty of negligence or misuse of the land or any support extended to them;

* The mere fact that the expected quantity of harvest, as visualized and calculated by agricultural experts, is not
actually realized, or that the harvest did not increase, is not a sufficient basis for concluding that the tenants failed
to follow proven farm practices. [Belmi v. CAR7]

3. Beneficiaries with at least three (3) hectares of agricultural land; and

* Under the CARL, a beneficiary is landless if he owns less than three (3) hectares of agricultural land. [Section 25]

4. Beneficiaries whose land have been the subject of foreclosure by the Land Bank of the Philippines. [Section 26]

* Under the CARL, the LBP may foreclose on the mortgage for non-payment of the beneficiary of an aggregate of three
(3) annual amortizations. [Section 26]

Note: the maximum award is 3 hectares. The requirement is that the beneficiary is landless. He is only landless if his
land is less than 3ha. The fact that they hold agricultural land does not automatically disqualify them from being a
beneficiary. Kelangan less than 3 hectares.

C. Awards

1. Emancipation Patents (EPs) are issued for lands covered under Operation Land Transfer (OLT) of Presidential Decree No.
27.

2. Certificates of Land Ownership Award (CLOAs) are issued for private agricultural lands and resettlement areas covered
under Republic Act No. 6657, otherwise known as the Comprehensive Agrarian Reform Law of 1988.

3. Free Patents are issued for public agricultural lands.

* Under Section 15 of EO 229 (1987), all alienable and disposable lands of the public domain suitable for agriculture
and outside proclaimed settlements shall be redistributed by the Department of Environment and Natural Resources
(DENR).
4. Certificates of Stewardship Contracts are issued for forest areas under the Integrated Social Forestry Program.

D. Manner of Payment [Section 26]

1. Lands awarded shall be paid by the beneficiaries to the LBP in thirty (30) annual amortizations at six percent (6%) interest
per annum. The payments for the first three (3) years after the awards may be at reduced amounts as established by
the PARC: Provided, That the first five (5) annual payments may not be more than five percent (5%) of the value of the
annual gross production as established by the DAR. Should the scheduled annual payments after the fifth year exceed
ten percent (10%) of the annual gross production and the failure to produce accordingly is not due to the beneficiary's
fault, the LBP may reduce the interest rate or reduce the principal obligation to make the repayment affordable.

2. Payment shall be:

a. Thirty (30) annual amortizations (First 3 years may be at reduced amounts);

b. Six percent (6%) interest per annum; and
c. First five (5) annual payments may not be more than five percent (5%) of the value of the annual gross production.

7
7 SCRA 812.
 Beneficiaries need to repay the government. If the government pays the landowner within a period of 10 years, the
beneficiary needs to pay back the land awarded to them within a period of 30 years. That is the cost of the agrarian
reform program. Interest rate is at 6% per annum.
Not a valid argument: how can the beneficiary pay back the government if the land value is very high?
For the first three years, the land value may be reduced by the PARC. In fact for the first 5 annual payments, it should
not be more than the annual value of the gross production.

Sir said: This 5% payment is counterproductive. If you are the awardee, you would not want your land to be
productive because it means you have to pay more.

E. Ownership Limitations on the Awarded Lands

1. Transferability of Awarded Lands. - Lands acquired by beneficiaries may not be sold, transferred or conveyed except
through hereditary succession, or to the government, or to the Land Bank of the Philippines, or to other qualified
beneficiaries for a period of ten (10) years. [Section 27]

* If the land is sold to the government or to the LBP, the children or the spouse of the transferee shall have a right to
repurchase within a period of two (2) years.

2. Conversions of Lands. - An application for conversion may be entertained only after the lapse of five (5) years from the
award, when the land ceases to be economically feasible and sound for agricultural purposes or the locality has become
urbanized and the land will have a greater economic value for residential, commercial or industrial purpose. [Section 66]

If it is awarded to an agrarian reform beneficiary, it can’t be transferred 10 years from award. Exceptions are
hereditary succession, when government is taking the property, or you’re transferring to it to another qualified
beneficiary. The other limitation is conversion, which is 5 years from award. Otherwise the farmer takes hold of the
property for 10 years.

Cancellation of Titles from CARL

DAR ADMINISTRATIVE ORDER NO. 06-11 (See the AO. Sir will upload it daw)
SUBJECT : The 2011 Revised Rules and Procedures Governing the Cancellation of Registered Emancipation Patents (EPs), Certificates
of Landownership Award (CLOAs), and Other Titles Issued Under any Agrarian Reform Program

Petition for Cancellation must be filed with the PARAD. It must be verified and must contain a disclosure agreement.
It’s the Secretary that decides. But why do you file it with the PARAD? It’s only for the purpose of case build-up. It’s
the PARAD that gathers evidence.
From the Office of the Secretary, it goes to the Office of the President. From the Office of the President, Petition for
Review from decisions of quasi-judicial bodies to the CA.

Important to know if the property is restricted or non restricted for purposes of conversion.

VIII. Corporate Farms

 A. Definition

* Corporate farms are farms which are owned or operated by corporations or other business associations. [Section 29]

B. Distribution

1. Land Transfer (Voluntarily Offer to Sell or Compulsory Acquisition)

a. General rule: Lands shall be distributed directly to the individual farmworker-beneficiaries.

b. Exception: However, if it is not economically feasible and sound to divide the land, then it shall be owned collectively
by the farmworker-beneficiaries through a workers' cooperative or association. [Section 29]
c. In case the land is transferred to a cooperative or association, the individual members of the cooperatives shall be
provided with homelots and small farmlots for their family use, to be taken from the land owned by the cooperative.
[Section 30]

2. Capital Stock Transfer [Section 31]

a. This is a non-land transfer. Corporations or associations which voluntarily divest a proportion of their capital stock,
equity or participation in favor of their workers or other qualified beneficiaries shall be deemed to have complied
with CARL.
b. Amount to be divested: Corporations owning agricultural lands may give their qualified beneficiaries the right to
repurchase such proportion of the capital stock of the corporation that the agricultural land, actually devoted to
agricultural activities, bears in relation to the company's total assets.

* Agricultural activity means the cultivation of the soil, planting of crops, growing of fruit trees, raising of fish,
including the harvesting of such farm products, and other farm activities and practices performed by a farmer
in conjunction with such farming operations done by persons whether natural or juridical [Section 3(b)].

c. Conditions of the Capital Stock Transfer.

i. The books of the corporation shall be subject to periodic audit by certified public accountants chosen by the
beneficiaries;
ii. The beneficiaries shall be assured of at least one (1) representative in the board of directors, or in a management
or executive committee, if one exists;
iii. Any share acquired by the beneficiaries shall have the same rights and features as all other shares; and
iv. Any transfer of shares of stock by the original beneficiaries shall be void ab initio unless said transaction is in
favor of a qualified and registered beneficiary within the same corporation.

d. Period for Compliance: If within TWO (2) YEARS from the approval of CARL or from the approval of the PARC of the
plan for stock distribution, the stock transfer is not made or realized, the agricultural land shall be subject to
compulsory coverage of the CARL.

DISTRIBUTION
As a rule, agricultural lands are distributed individually. However, it may be also distributed collectively. They
check economic feasibility (if you subdivide it, is it still feasible to divide it and distribute it to farmers? Or should
it be award it as a whole and collectively?). Usually, the lands distributed collectively are corporate farms, joint
ventures, or those under management contracts. If the existing farm is handled by a corporation and there are
farmworkers working on the land, the question is whether you should break that farm and distribute it
individually. Or whether you should maintain the farm and own it as a whole.
When the distribution is collective, the rules are: it is awarded to a farmer’s cooperative or association. The ratio
of 3ha per person/awardee should be maintained.
 Deferment – existed when the CARP was enacted. ‘Commercial’ means large-scale farming. Essentially, if it’s a
commercial farm you ask for a 10 year deferment. You’re saying: do not cover my property at this point in time.
We’re asking for 10 years before the property can be covered.
If it’s a new farm, they only start to count the 10 year period from the time it has reached commercial production.

QUESTION: If it’s a 300 hectare property awarded to 100 individuals who are members of the farmer’s
cooperative. One member resigns:
1. You no longer follow the ratio?
2. Is it possible to replace him with someone else in order to maintain the ratio?
3. Or is it his even if he is no longer part of the association?

Farmers working in an exempt fishpond (not covered by the CARP) are still entitled to production sharing 7.5% of
net income before tax. Fishponds and prawn farms, if they are covered (i.e. prior to amendment, or if it was in
transition and the farmers decided to agree to the coverage) they are entitled to the 3% gross income.

IX. Support Services

 A. General Support and Coordinative Services [Section 35]

1. Irrigation facilities;
2. Infrastructure development and public works projects in areas and settlements that come under agrarian reform;
3. Government subsidies for the use of irrigation facilities;
4. Price support and guarantee for all agricultural produce;
5. Extending the necessary credit;
6. Promoting, developing and extending financial assistance to small and medium scale industries in agrarian reform areas;
7. Assigning sufficient numbers of agricultural extension workers to farmers' organizations;
8. Undertaking research, development and dissemination of information on agrarian reform and low-cost and ecologically
sound farm inputs and technologies to minimize reliance on expensive and imported agricultural inputs;
9. Development of cooperative management through intensive training;
10. Assistance in the identification of ready markets for agricultural produce and training in other various aspects of
marketing; and
11. Administration, operation, management and funding of support service programs and projects including pilot projects
and models related to agrarian reform.

B. Support Services to Beneficiaries [Section 37]

1. Land surveys and titling;

2. Liberalized terms on credit facilities and production loans;
3. Extension services by way of planting, cropping, production and post-harvest technology transfer, as well as marketing
and management assistance and support to cooperatives and farmers' organizations;
4. Infrastructure such as access trail, mini-dams, public utilities, marketing and storage facilities; and
5. Research, production and use of organic fertilizers and other local substances necessary in farming and cultivation.

C. Support Services to Landowners [Section 38]

1. Investment information, financial and counselling assistance;

2. Facilities, programs and schemes for the conversion or exchange of bonds issued for payment of the lands acquired with
stocks and bonds issued by the National Government, the Central Bank and other government institutions and instru-
mentalities;
3. Marketing of LBP bonds, as well as promoting the marketability of said bonds in traditional and non-traditional financial
markets and stock exchanges;
4. Other services designed to utilize productively the proceeds of the sale of such lands for rural industrialization;
5. Incentives granted to a registered enterprise engaged in a pioneer or preferred area of investment as provided for in the
Omnibus Investment Code or granted by the PARC, the LBP or other government financial institutions for those who
invests in rural-based industries; and
6. Redemption by the LBP of up to thirty percent (30%) of the face value of the its bonds for landowners who will invest the
proceeds of the redemption in a BOI-registered company or in any agri-business or agro-industrial enterprise in the
region where they have previously made investments.

D. Funding

* At least twenty-five percent (25%) of all appropriations for agrarian reform shall be immediately set aside and made
available for support services. In addition, the DAR shall be authorized to package proposals and receive grants, aid and
other forms of financial assistance from any source. [Section 36]

X. Special Areas of Concern [Section 40]

 A. Subsistence Fishing: Small fisherfolk, including seaweed farmer, shall be assured of greater access to the utilization of water
resources.

B. Logging and Mining Concessions: Subject to the requirement of a balanced ecology and conservation of water resources,
suitable areas in logging, mining and pasture areas, shall be opened up for agrarian settlements whose beneficiaries shall be
required to undertake reforestation and conservation production methods.

* Certificates of Stewardship Contracts are issued for forest areas under the Integrated Social Forestry Program.

C. Sparsely Occupied Public Agricultural Lands: Sparsely occupied agricultural lands of the public domain shall be surveyed,
proclaimed and developed as farm settlements for qualified landless people.

* Agricultural land allocations shall be made for ideal family-size farms.

* Uncultivated lands of the public domain shall be made available on a lease basis to interested and qualified parties.
Priority shall be given to those who will engage in the development of capital-intensive, traditional or pioneering crops.

D. Idle, Abandoned, Forecloses and Sequestered Lands: Idle, abandoned, foreclosed and sequestered lands shall be planned
for distribution as home lots and family-size farmlots to actual occupants. If land area permits, other landless families shall
be accommodated in these lands.

E. Rural Women: All qualified women members of the agricultural labor force must be guaranteed and assured equal rights to
ownership of the land, equal shares of the farm's produce, and representation in advisory or appropriate decision-making
bodies.

F. Veterans and Retirees: Landless ware veterans and veterans of military campaigns, their surviving spouses and orphans,
retirees of the Armed Forces of the Philippines and the Integrated National Police, returnees, surrenderees and similar benefi-
ciaries shall be given due consideration in the disposition of agricultural lands of the public domain.

G. Agriculture Graduates: Graduates of agricultural schools who are landless shall be assisted by the government in their desire
to own and till agricultural lands.

XI. Program Implementation

A. Presidential Agrarian Reform Council (PARC)

1. Composition [Section 41]

a. Chairman: President of the Philippines

b. Vice-Chairman: Secretary of Agrarian Reform
c. Members:
i. Secretary of Agriculture;
ii. Secretary of Environment and Natural Resources;
iii. Secretary of Budget and Management;
iv. Secretary of Local Government;
v. Secretary of Public Works and Highways;
vi. Secretary of Trade and Industry;
vii. Secretary of Finance;
viii. Secretary of Labor and Employment;
ix. Director-General of National Economic and Development Authority;
x. President of Land Bank of the Philippines;
xi. Administrator of National Irrigation Authority;
xii. Three (3) representatives of affected landowners to represent Luzon, Visayas and Mindanao; and
xiii. Six (6) representatives of agrarian reform beneficiaries, two (2) each from Luzon, Visayas and Mindanao,
provided that one of them shall be from cultural communities.

2. Functions and Duties [EO 229, 1987]

a. Formulate and implement policies, rules and regulations necessary to implement the CARP;
b. Recommend small farm economy areas;
c. Schedule the acquisition and distribution of specific agrarian reform areas; and
d. Control mechanisms for evaluating the owner's declaration of current fair market value.

3. Executive Committee (EXCOM) of the PARC [Section 42]

a. There shall be an Executive Committee of the PARC which shall meet and decide on any and all matters in between
meetings of the PARC: Provided, however, That its decision must be reported in the PARC immediately and not later
than the next meeting.
b. Composition: The Secretary of Agrarian Reform shall be the Chairman and its members shall be designated by the
President, taking into account Article XIII, Section 5 of the Constitution (Rights of farmers to participate in the
planning, organization and management of the CARP).

4. PARC Secretariat [Section 43]

a. A PARC Secretariat is established to provide general support and coordinative services such as inter-agency linkages,
program and project appraisal and evaluation and general operations monitoring for the PARC.
b. Composition: The Secretariat shall be headed by the Secretary of Agrarian Reform who shall be assisted by an
Undersecretary and supported by a staff whose composition shall be determined by the PARC Executive Committee.

B. Provincial Agrarian Reform Coordinating Committee (PARCCOM)

1. Composition (Section 44)

a. Chairman: an appointee of the President upon recommendation of the PARC EXCOM;

b. Executive Officer: Provincial Agrarian Reform Officer;
c. Members:
i. Representative from the Department of Agriculture;
ii. Representative for the Department of Environment and Natural Resources;
 iii. Representative for the Land Bank of the Philippines;
iv. One representative each from existing farmers' organizations, agricultural cooperatives and non-governmental
organizations in the province;
v. Two representatives from the landowners, at least one of whom shall be a producer representing the principal
crop of the province;
vi. Two representatives from farmers and farmworker beneficiaries, at least one of whom shall be a farmer or
farmworker representing the principal crop of the province; and
vii. In areas where there are cultural communities, there shall be one representative from them.

2. Functions and Duties

a. Coordinate and monitor the implementation of the CARP in the province;

* The PARC shall provide the guidelines for a province-by-province implementation of the CARP. The ten-year
program of distribution of public and private lands in each province shall be adjusted from year to year by the
province's PARCCOM, in accordance with the level of operations previously established by the PARC, in every
case ensuring that support services are available or have been programmed before actual distribution is
effected. [Section 45]
b. Provide information on the following:
i. Provisions of the CARP;
ii. Guidelines issued by the PARC; and
iii. Progress of the CARP in the province.

C. Barangay Agrarian Reform Committee (BARC)

1. Composition [EO 229, 1987]

* The BARC shall be operated on a self-help basis and will be composed of the following:

a. Representatives of farmer and farmworker beneficiaries;

b. Representatives of farmer and farmworker non-beneficiaries;
c. Representatives of agricultural cooperatives;
d. Representatives of other farmer organizations;
e. Representatives of the Barangay Council;
f. Representatives of non-governmental organization (NGOs);
g. Representatives of landowners;
h. Department of Agriculture official assigned to the area;
i. Department of Environment and Natural Resources official assigned to the area;
j. DAR Agrarian Reform Technologist assigned to the area; and
k. Land Bank of the Philippines representative.

2. Functions [EO 229, 1987 and Section 47]

* The BARC shall have the following functions:

a. Mediate and conciliate between parties involved in an agrarian dispute;

b. Assist in the identification of qualified beneficiaries and landowners within the barangay;
c. Attest to the accuracy of the initial parcellary mapping of the beneficiary's tillage;
d. Assist qualified beneficiaries in obtaining credit from lending institutions;
e. Assist n the initial determination of the value of the land;
f. Assist the DAR representative in the preparation of periodic reports on the CARP implementation;
g. Coordinate the delivery of support services to beneficiaries;
h. Participate and give support in the implementation of CARP; and
i. Perform such other functions as may be assigned by the PARC and DAR.
 D. Others

1. No injunction, restraining order, prohibition or mandamus shall be issued by the lower courts against the DAR, DA, DENR
and DOJ in their implementation of CARP. [Section 68]

* This does not apply to the Supreme Court.

2. The PARC, in the exercise of its functions, is hereby authorized to call upon the assistance and support of other
government agencies, bureaus and offices, including government-owned or controlled corporations. [Section 69]

XII. Administrative Adjudication

A. Jurisdiction

1. The Department of Agrarian Reform is hereby vested with primary jurisdiction to determine and adjudicate agrarian
reform matters and shall have exclusive original jurisdiction over all matter involving the implementation of agrarian
reform, except those falling under the exclusive jurisdiction of the Department of Agriculture and the Department of
Environment and Natural Resources. [Section 50]

2. DAR Adjudicator

a. Department of Agrarian Reform Adjudication Board (DARAB)

i. Exercises both original and appellate jurisdiction
ii. Exercises functional supervision over the RARADs and PARADs

b. Regional Agrarian Reform Adjudicator (RARAD)

i. Executive Adjudicator in his region
ii. Receives, hears and adjudicates cases which the PARAD cannot handle because the latter is disqualified or
inhibits himself or because the case is complex or sensitive

c. Provincial Agrarian Reform Adjudicator (PARAD)

3. Exclusive Jurisdiction of the Secretary of Agrarian Reform

* Matter involving strictly the administrative implementation of the CARP and agrarian laws and regulations shall
be the exclusive prerogative of and cognizable by the Secretary of Agrarian Reform

B. BARC Certification Requirement

1. The DAR shall not take cognizance of any agrarian dispute of controversy unless a certification from the BARC that the
dispute has been submitted to it for mediation and conciliation without any success of settlement is presented. [Section
53]

* Failure to present a BARC certification is not a ground for dismissal of the action. The complainant or petitioner will
be given every opportunity to secure the BARC certification. [Rule III, Section 1(c) of the DARAB Rules]

2. Exceptions to the BARC Certification Requirement:

a. Failure of the BARC to issue a certification within thirty (30) days after a matter or issue is submitted to it;
b. The required certification cannot be complied with for valid reasons like the non-existence or non-organization of
the BARC or the impossibility of convening it. A certification to that effect may be issued by the proper agrarian
reform officer in lieu of the BARC certification; [Rule III, Section 1(b) of DARAB Rules]
c. The issue involves the valuation of the land to determine just compensation; [Rule III, Section 2 of DARAB Rules]
d. The parties reside in different barangays, unless they adjoin each other;
* Where the lands involved in the dispute straddles two or more barangays, the BARC of the Barangay where the
biggest portion lies, shall have the authority to conduct the mediation or conciliation proceeding.
e. One of the party is a public or private corporation, a partnership, association or juridical person, or a public officer
or employee and the dispute relates to the performance of his official functions;
f. The issue involves merely the administrative implementation of agrarian reform law, rule, guideline or policy; and
g. The issue is beyond the pale of mediation, conciliation or compromise, as determined by the Secretary of Agrarian
Reform.

C. Rules of Procedure

1. It shall not be bound by technical rules of procedure and evidence but shall proceed to hear and decide all cases, disputes
or controversies in a most expeditious manner, employing all reasonable means to ascertain the facts of every case in
 accordance with justice and equity and the merits of the case. [Section 50]

2. Responsible leaders shall be allowed to represent themselves, their fellow farmers, or their organizations in any proceed-
ings before the DAR [Section 50]

3. To discourage frivolous or dilatory appeals from the decision or order on the local or provincial levels, the DAR may
impose reasonable penalties, including but not limited to fines or censures upon erring parties. [Section 52]

D. Enforcement Powers

1. It shall have the power to summon witnesses, administer oaths, take testimony, require submission of reports, compel
the production of books and documents and answers to interrogatories and issue subpoena, and subpoena duces tecum
and to enforce its writs through sheriffs or other duly deputized officers. It shall likewise have the power to punish direct
and indirect contempt in the same manner and subject to the same penalties as provided in the Rules of Court. [Section
50]

2. The DAR has executed a Memorandum of Agreement with the Philippine National Police, in order that the latter may
assist the DAR in the enforcement of its orders.

E. Judicial Review

1. Any decision, order, award or ruling of the DAR on any agrarian dispute or on any matter pertaining to the application,
implementation, enforcement or interpretation of the CARL and other pertinent laws on agrarian reform may be brought
to the Court of Appeals by certiorari within fifteen (15) days from receipt of a copy thereof. [Section 54]

2. The findings of fact of the DAR shall be final and conclusive if based on substantial evidence.

3. Notwithstanding an appeal to the Court of Appeals, the decision of the DAR shall be immediately executory. [Section 50]

XIII. Special Agrarian Court

 A. Jurisdiction [Section 57]

1. The Special Agrarian Courts (Regional Trial Courts) shall have original and exclusive jurisdiction over:

a. All petitions for the determination of just compensation to landowners; and

b. The prosecution of all criminal offenses under the CARL.

2. The Special Agrarian Courts, upon their own initiative or at the instance of any of the parties, may appoint one or more
commissioners to examine, investigate and ascertain facts relevant to the dispute, including the valuation of properties
and to file a written report thereof with the court.

B. Appeals

1. Appeal from the Decision of the Special Agrarian Court

* Within fifteen (15) days from the receipt of the decision of the Special Agrarian Court, an appeal may be taken by filing
a petition for review with the Court of Appeals.

2. Appeal from the Decision of the Court of Appeals

* Within a non-extendible period of fifteen (15) days from the receipt of the decision of the Court of Appeals, an appeal
may be taken by filing a petition for review with the Supreme Court.

DARAB DAR PARC

It’s an adjudication board, therefore Implementation of R.A. 6637. Policy-making
it exercises quasi-judicial functions.
It has regional and provincial
adjudicators.
DARAB handles agrarian disputes. If the question is how to implement it sets the policy for the Department
There is an agrarian dispute when the law, it falls under the DAR. on how the law should be
there is a dispute between the rights implemented). The PARC does not
and obligations of the farmworker decide on anything.
and the landowner.
(Ex: determination of tenancy,
determination of disturbance
compensation)

2009 Rules of Procedure (DAR Adjudication Board or DARAB)

Venue
- Where the land is situated. If the land is situated in two provinces, where the larger portion is located.
- It gets filed with the Provincial Adjudication Board.
- Everything should originate from the Provincial Adjudicator. An exception is the determination of land
value. The Provincial Adjudicator can refer the case to the Regional Ajudicator or the DARAB, or even the
DAR.

Procedure
- What gets filed with PARAD? Complaint or petition. You need a BARC certification that it went through
conciliation and mediation, sworn and verified.
- Read: Rule IV
- You are given some time to comply with the certification, unlike in civil and criminal procedure where your
complaint will be dismissed out right.
- After filing the complaint, you have to obtain jurisdiction over the person.
 - Motion to dismiss may be filed, but very limited.
- Upon answer, a preliminary conference is set.
- It is only the Board that hears the appeal. The Board may ask the parties some clarificatory questions or
submit some documents as it may require. Once the appeal has been made, you will be required to submit
respective memorandums.
- As soon as the Board decides on the case, you may file MOR within 15 days. Afterwards, you can bring it up
before the Court of Appeals. And from the CA, you can go up to the SC.
- If the defendant fails to file an answer, there is no such thing as a default order with the DARAB rules of
procedure.

RULE 19 – preliminary determination of just compensation

- The PARAD, RARAD and the Board have their respective jurisdiction
o PARAD: less than 10 million
o RARAD: over 10 million and below 50 million
o Board: 50 million and up
- Once they decide on the just compensation, you file an original action with the Special Agrarian Court (RTC).
Technically, it’s not an appeal, but an original action. It’s a petition for determination of just compensation
before the Agrarian Court.
o The Rules mandate the aggrieved party to file the action within 15 days from receipt of the decision
of the Adjudication unit. Sir has a problem with this: if it’s an original action, why do you need the
15 days in the filing of your just compensation.
o It requires you to give notice that such action has been filed. If you do not file, they say that it shall
render the decision of the Board final and executory. But if the action is filed and due notice is
given, the decision of the Board and Adjudicators is stayed. Sir’s problem with this is how will you
proceed with the coverage of the property if they will not execute? You need to make deposit of
the payment before you can take the property, but since the decision is stayed, you can’t
implement. This kind of procedure will actually help the landowner, because nothing will be
implemented.
- If the special agrarian court decides on the case, how will you make your appeal and when will it be made?

Important
- What will you file, where you file
- What will you do if decision is not in your favour
- Summary admin proceedings with respect to land valuation

2003 Rules for Agrarian Law Implementation Cases (DAR)

It is the Regional Director that decides on the ALI cases. Whether it’s exemption, protest in the coverage, priorities
in identification of agrarian reform beneficiaries, it is the regional director that takes cognizance in the case. The
decision of the Regional Director gets appealed to the Office of the Secretary. From the Office of the Secretary, it
gets appealed to the Office of the President. From the Office of the President you go to the Court of Appeals.

There are two ways of getting the case to the RD:

1. Outright complaint, application or a petition. (e.g. application for exemption, protest against coverage,
application for conversion). It gets to the RD directly. In this case, the complaint is sent back to the PARO
for evaluation, and the RD rules on the basis of the PARO’s recommendation.
2. Through the process of coverage. You get a Notice of Coverage. When you get a Notice of Coverage, you
should within 30 days make a claim for exemption, exclusion. The protest is usually filed with the PARO or
MARO. Then it goes up to the RD, and a decision is made by the RD, usually based on the recommendation
of the PARO.

What if your property is not agricultural (it’s been re-zoned) and hence is exempted from the coverage, and yet you
 were sent a Notice of Coverage. Do you still need to file an application for exemption?
- If you flle, all you have to do is wait for the decision.
- If you don’t file, what will DAR do?
o Failure to file is deemed a waiver, and DAR will continue with the proceedings.
o What is the recourse of the landowner?
 Bring it up to the Office of the Secretary. But chances are the Office of the Secretary will
deny your appeal for your failure to follow the Rules. Then, you go to the Office of the
President.
 (Rule 65. But risky because you first have to exhaust all administrative remedies.)

If it’s exemption under Section 10 (i.e. it’s a fishpond, etc.), you need not apply.

Jurisdiction of the RD:

Zoning – 5ha, Land Use Conversion – 5ha. In these cases, if it’s more than 5ha, it goes up to the Office of the Secretary,
or person with delegated authority. On all other matters, regardless of the size of the property, the RD has
jurisdiction.

Certificate against forum shopping it’s still required. Unlike in the DARAB, in the RD failure to file will cause the
dismissal of the complaint.

How do you appeal from the RD to the Office of the Secretary? (RULE IV)
- Notice of Appeal with the RD, within 15 days from receipt of RD’s decision.
- You must likewise pay your appeal fee.

After appeal is perfected, you have 10 days to file your appeal brief. Office of the Secretary will now decide on your
appeal.

Appeal from Secretary to OP (RULE V)

XIV. Prohibited Acts and Omissions

A. Prohibited Acts and Omissions

1. Section 73. The following are prohibited.

a. The ownership or possession, for the purpose of circumventing the provisions of CARL, of agricultural lands in excess
of the total retention limits or award ceilings by any person, natural or juridical, except those under collective
ownership by farmer-beneficiaries.
b. The forcible entry or illegal detainer by persons who are not qualified beneficiaries to avail themselves of the rights
and benefits of the CARP.
c. The conversion by any landowner of his agricultural land into non-agricultural uses with intent to avoid the
application of CARL to his landholdings and to dispossess his tenant farmers of the land tilled by them.
d. The willful prevention or obstruction by any person, association or entity of the implementation of the CARP.
e. The sale, 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 CARL.
i. Upon the effectivity of CARL, any sale, disposition, lease, management contract or transfer of possession of
private lands executed by the original landowner in violation of CARL shall be null and void; Provided, however,
that those executed prior to CARL shall be valid only when registered with the Register of Deeds within a three
(3) months after the effectivity of CARL. [Section 6]

* Exception: Banks and other financial institutions allowed by law to hold mortgage rights or security interests in
agricultural lands to secure loans and other obligations of borrowers, may acquire title to these mortgaged
properties, regardless of area, subject to existing laws on compulsory transfer of foreclosed assets and
acquisition as prescribed under Section 16 of CARL [Section 71]

ii. Disposition of private lands is in violation of CARL if it is over the retention limit.

iii. The date of registration of the deed of conveyance in the Register of Deeds with respect to title lands and the
date of the issuance of the tax declaration to the transferee of the property with respect to untitled lands shall
be conclusive for this purpose.

f. The sale, transfer of conveyance by a beneficiary 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 provisions of CARL. [Refer to VII(E) of this
Outline]

2. Any person who knowingly or willfully violates the provisions of CARL shall be punished by imprisonment of not less than
one (1) month to not more than three (3) years or a fine of not less than one thousand pesos (P 1,000.00) and not more
than fifteen thousand pesos (P 15,000.00), or both at the discretion of the court.
If the offender is a corporation or association, the officer responsible therefor shall be criminally liable.

B. Conversions

1. Authority to Allow Conversion of Agricultural Land for Non-agricultural Uses

a. Under Executive Order No. 129-A, Series of 1987, the Department of Agrarian Reform is authorized to:
i. Approve or disapprove the conversion, restructuring or readjustment of agricultural lands into non-agricultural
uses; [Section 4(j)]
ii. Have exclusive authority to approve or disapprove conversion of agricultural lands for residential, commercial,
industrial and other land uses as may be provided for by law. [Section 5(l)]

b. The Comprehensive Agrarian Reform Law provides that the DAR ... may authorize the reclassification or conversion
on the land and its disposition. [Section 65]

2. Conversion
 a. After the lapse of five (5) years from its award, when the land ceases to be economically feasible and sound for
agricultural purposes, or the locality has become highly urbanized and the land will have greater economic value for
residential, commercial or industrial purposes, the DAR, upon application of the beneficiary or the landowner, may
authorize the reclassification or conversion on the land and its disposition: Provided, That the beneficiary shall have
fully paid his obligation. [Section 65]

b. Grounds for conversion

i. Five (5) years had lapsed from the award of the land;
ii. The land ceases to be economically feasible and sound for agricultural purposes, or the locality has become
highly urbanized and the land will have greater economic value for residential, commercial or industrial purpos-
es; and
iii. Beneficiary shall have fully paid his obligation.

c. Administrative Order No. 20, Series of 1992 [Took effect on 30 December 1992]

* President Fidel V. Ramos directed the observance by all agencies and local government units the following
interim guidelines on agricultural land use conversion.

i. All irrigated or irrigable agricultural lands shall not be subject to and non-negotiable for conversion;
ii. All other agricultural lands may be converted only upon strict compliance with existing laws, rules and
regulations.

3. Disturbance Compensation

* Section 36(1) of Republic Act No. 3844, as amended provides: the agricultural lessee shall be entitled to disturbance
compensation equivalent to five years rental on his landholding.

* Displaced farmers are entitled to disturbance compensation which varies depending on the agreement between the
farmers and the landowners.

CONVERSION

AO 2002-01 Conversion
Instances where you need to apply for conversion: (Sec 3)
1. Changing the land physically from agriculture to non-agriculture. The DAR has jurisdiction over these
agricultural lands, so you need to apply for conversion. You need a zoning ordinance from the LGU that the
property is re-zoned for non-agricultural purposes. It can likewise be done through a presidential
proclamation. (Agriculture to non-exempt non-agriculture)
2. From agricultural to non-agricultural but are exempt. You want to change the property to fishpond and
prawnfarms, etc. You likewise need to apply for conversion. (Agriculture to exempt agriculture)
3. You already have a conversion order developing the property for specific purposes, but you want to change
the conversion order. (An existing conversion order to for a specific purpose to a different purpose)
Note: The very first thing you need is a reclassification of the property, i.e. zoning ordinance. The only exemption to
that rule is when the property has become highly urbanized.

Areas non-negotiable for conversion (Sec 4)

1. Irrigated or irrigable
2. Protected areas under NIPAS

Areas highly restricted from conversion (Sec 5)

You need to apply for conversion. There are are around 28 documentary requirements (Sec 10). Important
documents:
 1. Zoning certificate
2. What you planned to do with the area/development plan
3. ECCs but only to an environmentally critical area
4. Posting requirement with certification from MARO that there is a posting for your pending application
5. File a bond against premature conversion (Sec 23, Sec 24). The bond will pay for the damages when there
is premature conversion. The bond can either be cash or surety bond issued by GSIS. When it’s cash, the
value is 2.5% of zonal value of the property when it is converted. If it’s a surety bond, it’s 15%.
a. As soon as the bond is filed, there is an ocular inspection conducted.
b. Application for conversion: 5ha is with the regional director. Over 5ha is with the DAR central
office.
c. Once the application is approved, your bond becomes a performance bond (Sec 26). The
performance bond, as opposed to the premature conversion bond, makes sure that you convert
the land according to your application. If you fail to do that, the bond will answer for that.
d. You should do conversion at least 1 hectare a year but in no case shall it be more than 5 years. (Sec
34)

Other important (raised in recit)

6. (OCT just to show you’re the owner. Your title should be 30 days old. There should be a trace back to the
status of the land prior to the CARP. This is to check whether there is transfer in the property).

What happens when your application for disturbance is denied?

- Decision of the Regional Director, appeal to the OP
- If it’s a decision of the OP, appeal to the CA

Agro-tourism – not physically a conversion. It’s a hybrid wherein the property is placed under CARP, but at the same
time the area can be developed as a tourism site. The rule is that so longa s less than 50% is developed for tourism
and the others remain agricultural, that application may be granted.

Can your application for conversion be revoked? (Sec 46)

- 90 day period from knowledge but not more than 1 year from the issuance of order

What grounds? (Sec 47)

The conversion is usually applied for by the owner. What is the holding period? After the 5-year period of the award.
The agrarian reform beneficiary may ask for conversion of the property awarded to him provided it’s been more
than 5 years from award. The property must also have been fully paid. If that is complied with then the beneficiary
proceed to apply for conversion provided he follows all the procedures.

The disturbance compensation that needs to be paid is at least 5x of gross annual production. Applies to both
exemption and conversion. (Sec 28).

CLUPPI (center for land use policy, planning and implementation)

In conversion there are priority development areas. (Sec 6)

1. Regional Agr-Industrial Centers/Regional Industrial Centers identified by DTI
2. Tourism Development Areas by DOT
3. Agricultural areas intended for Eco Zone Projecs
4. Agricultural land owned by government to be converted for projects of national interest
5. Processing plants of agricultural products certified by DA
6. Telecommunication facilities by NTC
7. Housing projects