Comprehensive Agrarian Reform Law (1998) Manuel Roxas (1946-1948)
Republic Act 6657 Republic Act 34 amended the Rice Share Tenancy Act by introducing changes
History of agrarian reform
Pre-Spanish Period
There were no owner-cultivators, only communal land owned by the
barangay which consisted of a datu, freemen, serfs and slaves.
Everyone can access the fruits of the soil.
Spanish Period
Relationship between landowners and tenants was governed by the Civil
Code, particularly by the Special Provisions for Rural Leases
Encomienda system was introduced
Most of the land were distributed to the Spanish military and clergy
American Regime
Rice Share Tenancy Act was promulgated which regulated relationships
between landlords and tenants on rice lands
Sugar Tenancy Act was also enacted to regulate relationships between
landlords and tenants on lands planted with sugar cane
Commonwealth
Commonwealth Act 53 was passed which recognized the testimony of the
tenant as prima facie evidence of the terms of a tenancy contract not reduced
in writing known to him
Commonwealth Act 178 and 271 amending provisions of the Rice Share
Tenancy Act and extending the same to sugar farmers.
Commonwealth Act 461 and 608 provided for the security of tenure of
agricultural tenants
in crop division.
70-30 sharing arrangement between the tenant and the landlord
Reduced the interest of landowners’ loans to tenants at not more than 6%
Elpidio Quirino (1948-1953)
Established the Land Settlement Development Corporation (LASEDECO) to
accelerate and expand the peasant resettlement program of the government.
Ramon Magsaysay (1953-1957)
R.A. No. 1199 – Agricultural Tenancy Act was enacted which governed
relationships between landholders and tenant-farmers. Helped protect the
tenurial rights of tenant tillers and enforced fair tenancy practices
R.A. No. 1160 – Free distribution of Resettlement and Rehabilitation and
Agricultural land and an Act establishing the National Resettlement and
Rehabilitation Administration (NARRA)
Ramon Magsaysay (1953-1957)
R.A. No. 1400 – Land Reform Act also known as “Land to the Landless”
Program sought improvement in land tenure and guaranteed the
expropriation of all tenanted landed estates.
Diosdado Macapagal (1961-1965)
“Father of Agrarian Reform”
Enacted R.A. No. 3844 or the Agricultural Land Reform Code which abolished
share tenancy, prescribed programs converting the tenant farmers to lessees
and eventually into owner-cultivators.
Ferdinand E. Marcos (1965-1986)
R.A. No. 6389 – The Code of Agrarian Reforms was enacted which governed
the implementation of agrarian reform in the Philippines, created the
Department of Agrarian Reform
R.A. No. 6390 was enacted to expedite the implementation of the agrarian
reform program in the fields of land acquisition and agricultural credit
Ferdinand E. Marcos (1965-1986)
P.D. No. 27 or the Tenant Emancipation Law provided for the transfer of lands
primarily devoted to rice and corn to the tenants.
Corazon C. Aquino (1986-1992)
E.O. No. 228 declared full land ownership in favor of beneficiaries under P.D.
No. 27
E.O. No. 229 provided for the implementation of EO 228
Proclamation No. 131 instituted a comprehensive agrarian reform program
Comprehensive Agrarian Reform Law of 1988 was enacted on June 10, 1988
General Concepts
Agrarian Law
Embraces all laws that govern and regulate the rights and relationship over
agricultural lands between landowners, tenants, lessees or agricultural
workers.
Land Reform
Refers to all sets of activities and measures that may or should be taken to
improve or correct the defects or problems in the relations among men with
respect to their rights to the land they till.
Technically defined as an integrated set of measures designed to eliminate
obstacles to economic and social development arising out of defects in the
agrarian structure
Agrarian Reform
Redistribution of lands, regardless of crops or fruits produced to farmers and
regular farmworkers who are landless, irrespective of tenurial arrangement,
to include the totality of tactors and support services designed to lift the
economic status of the beneficiaries and all other arrangements alternative to
the physical redistribution of lands, such as production or profit-sharing, labor
administration, and the distribution of shares of stocks, which will allow
beneficiaries to receive a just share of the fruits of the lands they work.
Agricultural Land
Land devoted to agricultural activities
Contemplate lands that are arable and suitable for farming
Primary Objective of Agrarian Reform
Breakup agricultural lands
Transform them into economic-size farms
To be owned by the farmers themselves
To uplift their socio-economic status
Economic Family-Size Farm
Area of farm land that permits efficient use of labor and capital resources of
the farm family and will produce an income sufficient to provide a modest
standard of living to meet a farm family’s needs for food, clothing, shelter,
and education with possible allowance for payment of yearly installments on
the land, and reasonable reserves to absorb yearly fluctuations in income.
Major features of RA 6657
 Provides for the coverage of all agricultural lands regardless of crops
produced or tenurial status of tillers
 Recognizes as beneficiaries all workers in the land given that they are
landless and willing to till the land
 Provides for the delivery of support services to program beneficiaries
 Provide for arrangements that ensure the tenurial security of farmers and
farmworkers as the leasehold arrangement, stock distribution option and
production and profit sharing
 Creates an adjudication body that will resolve agrarian disputes
Land acquisition
Police Power
The power vested in the legislature by the Constitution to make, ordain,
establish all manner of wholesome and reasonable laws for the good and
welfare of the State and its people. (ERMITA MALATE HOTEL VS. CITY
MAYOR, July 31, 1967)
Eminent Domain
Right or power of a sovereign state to appropriate private property to
particular uses to promote public welfare. It is an indispensable attribute of
sovereignty; a power grounded in the primary duty of government to serve
the common need and advance the general welfare.
The Constitution provides that “private property shall not be taken for public
use without just compensation.” Furthermore, the due process and equal
protection clauses act as additional safeguards against the arbitrary exercise
of this governmental power.
Requisites
1. An ordinance is enacted by the local legislative council
authorizing the local chief executive, in behalf of the local
government unit, to exercise the power of eminent domain or
pursue expropriation proceedings over a particular private
property.
2. The power of eminent domain is exercised for public use,
purpose or welfare, or for the benefit of the poor and the
landless.
3. There is payment of just compensation, as required under
Section 9, Article III of the Constitution, and other pertinent
laws.
4. A valid and definite offer has been previously made to the
owner of the property sought to be expropriated, but said
offer was not accepted.
Procedure for land acquisition
Transfer of Private and Public Lands to Farmer Beneficiaries
Scope
Except as otherwise provided in this Act, no person may own or retain,
directly or indirectly, any public or private agricultural land, the size of which
shall vary according to factors governing a viable family-size farm, such as
commodity produced, terrain, infrastructure, and soil fertility as determined
by the Presidential Agrarian Reform Council (PARC) created hereunder, but in
no case shall retention by the landowner exceed five (5) hectares.
Three (3) hectares may be awarded to each child of the landowner, subject to
the following qualifications:
-that he is at least fifteen (15) years of age; and
-that he is actually tilling the land or directly managing the farm:
-Provided, That landowners whose lands have been covered by
Presidential Decree No. 27 shall be allowed to keep the areas originally
retained by them thereunder:
-Provided, further, That original homestead grantees or their direct
compulsory heirs who still own the original homestead at the time of the
approval of this Act shall retain the same areas as long as they continue to
cultivate said homestead
The right to choose the area to be retained, which shall be compact
or contiguous, shall pertain to the landowner
In case the area selected for retention by the landowner is tenanted, the
tenant shall have the option to choose whether to remain therein or be a
beneficiary in the same or another agricultural land with similar or
comparable features
Rights of the Tenant
In case the tenant chooses to remain in the retained area, he shall be
considered a leaseholder and shall lose his right to be a beneficiary under this
Act
In case the tenant chooses to be a beneficiary in another agricultural land, he
loses his right as a leaseholder to the land retained by the landowner
The tenant must exercise this option within a period of one (1) year from the
time the landowner manifests his choice of the area for retention. In all cases,
the security of tenure of the farmers or farmworkers on the land prior to the
approval of this Act shall be respected.
Upon the effectivity of this Act, any sale, disposition, lease,
management, contract or transfer of possession of private lands executed by
the original landowner in violation of the Act shall be null and void
Those executed prior to this Act shall be valid only when registered with the
Register of Deeds within a period of three (3) months after the effectivity of
this Act. Thereafter, all Registers of Deeds shall inform the Department of
Agrarian Reform (DAR) within thirty (30) days of any transaction involving
agricultural lands in excess of five (5) hectares
Priorities of Coverage
The Department of Agrarian Reform (DAR) in coordination with the
Presidential Agrarian Reform Council (PARC) shall plan and program the
acquisition and distribution of all agricultural lands through a period of ten
(10) years from the effectivity of this Act.
Phase One
Rice and corn lands under Presidential Decree No. 27; all idle or abandoned
lands; all private lands voluntarily offered by the owners for agrarian reform;
all lands foreclosed by the government financial institutions; all lands
acquired by the Presidential Commission on Good Government (PCGG); and
all other lands owned by the government devoted to or suitable for
agriculture, which shall be acquired and distributed immediately upon
the effectivity of this Act, with the implementation to be completed within a
period of not more than four (4) years;
Phase Two
All alienable and disposable public agricultural lands; all arable public
agricultural lands under agro-forest, pasture and agricultural leases already
cultivated and planted to crops in accordance with Section 6, Article XIII of the
Constitution; all public agricultural lands which are to be opened for new
development and resettlement; and all private agricultural lands in excess of
fifty (50) hectares, insofar as the excess hectarage is concerned, to implement
principally the rights of farmers and regular farmworkers, who are the
landless, to own directly or collectively the lands they till, which shall be
distributed immediately upon the effectivity of this Act, with the
implementation to be completed within a period of not more than four (4)
years.
Phase Three
All other private agricultural lands commencing with large landholdings and
proceeding to medium and small landholdings under the following schedule:
(a) Landholdings above twenty-four (24) hectares up to fifty (50) hectares, to
begin on the fourth (4th) year from the effectivity of this Act and to be
completed within three (3) years; and
(b) Landholdings from the retention limit up to twenty-four (24) hectares, to
begin on the sixth (6th) year from the effectivity of this Act and to be
completed within four (4) years; to implement principally the right of farmers
and regular farmworkers who are landless, to own directly or collectively the
lands they till.
Notes
Schedule of acquisition and redistribution shall be in accordance with the
previously mentioned order of priority provided in the implementing rules to
be prepared by the Presidential Agrarian Reform Council (PARC) considering
the following:
 The need to distribute land to the tillers at the earliest practicable
time;
 The need to enhance agricultural productivity;
 The availability of funds and resources to implement and support the
program
In any case, the PARC, upon recommendation by the Provincial
Agrarian Reform Coordinating Committee (PARCCOM), may declare certain
provinces or region as priority land reform areas, in which the acquisition and
distribution of private agricultural lands therein may be implemented ahead
of the above schedules. In effecting the transfer within these guidelines,
priority must be given to lands that are tenanted.
The PARC shall establish guidelines to implement the above priorities
and distribution scheme, including the determination of who are qualified
beneficiaries: Provided, That an owner-tiller may be a beneficiary of the land
he does not own but is actually cultivating to the extent of the difference
between the area of the land he owns and the award ceiling of three (3)
hectares.
Multinational Corporations
Agricultural lands leased, held or possessed by multinational corporations are
subject to compulsory acquisition and distribution to be distributed directly to
the individual worker-beneficiaries
If it is not economically feasible to divide the land, a workers’ cooperative or
association shall deal with the corporation by way of lease or growers’
agreement and other legitimate purposes.
Ancestral Lands
Lands of the public domain that have been in open, continuous, exclusive, and
notorious occupation and cultivation by members of the National Cultural
Communities by themselves or through their ancestors, under a bona fide
claim of acquisition of ownership according to their customs and traditions for
a period of at least thirty (30) years before the date of approval of PD 410
Exempted from Agrarian Reform Law
Procedure for acquisition of private lands
Acquisition of Private Lands
1. Sending of Notice to acquire the land to the owners, by personal
service, registered mail and posting of the same in a conspicuous
place in the municipal building or barangay hall of the place where
the property is located. Notice shall contain the offer of DAR with
valuation in accordance to Sec 17, 18 and other pertinent provisions.
2. Owner, administrator or representative shall inform the DAR of his
acceptance or rejection within thirty (30) days
3. If the landowner accepts, the Land Bank of the Philippines (LBP) shall
pay the purchase price within 30 days after the execution and delivery
of the deed of transfer and surrendering of the Certificate of Title and
other muniments of title
4. In case of rejection or failure to reply, DAR shall conduct a summary
proceeding to determine compensation
5. Upon receipt of payment or deposit of the same, DAR shall take
possession of the land and request the Register of Deeds (RD) to issue
a Transfer Certificate Title (TCT) in the name of the Republic
6. Any adverse party may bring the matter to the court of proper
jurisdiction for final determination of just compensation
Incentive for Voluntary Offers for Sale
Landowners, other than banks and other financial institutions, who
voluntarily offer their lands for sale shall be entitled to an additional five
percent (5%) cash payment
Transferability of Awarded Lands
Lands acquired by beneficiaries under this act may not be sold, transferred or
conveyed except through hereditary succession, or to the government, or the
LBP, or to other qualified beneficiaries for 10 years
Children or spouse of the transferor has a right to repurchase from the
government or LBP within 2 years
Lands not fully paid may be transferred or conveyed, with prior approval of
the DAR, to any heir of the beneficiary, or to any other beneficiary who will
cultivate the land himself
Failing compliance, the land shall be transferred to the LBP and shall
compensate the beneficiary in one lump sum for the amount the latter has
already paid, together with the value of the improvements made to the land
Land Acquisition of Corporate Farms
Generally: Lands are to distributed to the individual worker-beneficiaries.
In case of infeasibility and unsoundness to divide the land, the land shall be
owned collectively by the workers’ cooperative or association which will deal
with the corporation or business association.
Until a new agreement is entered, previous and existing agreement at the
time the Act takes effect between the former and previous landowner shall
be respected by the workers’ cooperative or association and the corporation
or business association
Stock Distribution Option
Corporate landowners may voluntarily transfer ownership over their
agricultural landholdings to the Republic of the Philippines pursuant to
Section 20 hereof or to qualified beneficiaries, under such terms and
conditions, consistent with this Act, as they may agree upon, subject to
confirmation by the DAR. Upon certification by the DAR, corporations owning
agricultural lands may give their qualified beneficiaries the right to purchase
such proportion of the capital stock of the corporation that the agricultural
land, actually devoted to agricultural activities, bears in relation to the
company's total assets, under such terms and conditions as may be agreed
upon by them. In no case shall the compensation received by the workers at
the time the shares of stocks are distributed be reduced
Conditions to be Complied with:
a) In order to safeguard the right of beneficiaries who own shares of
stocks to dividends and other financial benefits, the books of the
corporation or association shall be subject to periodic audit by
certified public accountants chosen by the beneficiaries;
b) Irrespective of the value of their equity in the corporation or
association, the beneficiaries shall be assured of at least one:(1)
representative in the board of directors, or in a management or
executive committee, if one exists, of the corporation or association;
and
c) Any shares acquired by such workers and beneficiaries shall have the
same rights and features as all other shares
d) Any transfer of shares of stocks by the original beneficiaries shall be
void ab initio unless said transaction is in favor of a qualified and
registered beneficiary within the same corporation. If within two (2)
years from the approval of this Act, the land or stock transfer
envisioned above is not made or realized or the plan for such stock
distribution approved by the PARC within the same period, the
agricultural land of the corporate owners or corporation shall be
subject to the compulsory coverage of this Act
Retention, exemption and exclusion
Retention Limits
No person may own or retain, directly or indirectly, any public or private agri-
cultural 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.
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.
Exceptions to the Retention limit
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
Commercial Farming
Commercial Farms are private agricultural lands devoted to:
a. commercial livestock, poultry and swine raising;
b. aquaculture including salt beds, fishponds and prawn ponds;
c. fruit farms;
d. orchards, vegetable and cut-flower farms; and
e. cacao, coffee and rubber plantations
Commercial Farms shall be subject to immediate compulsory acquisition and
distribution after 10 years from effectivity of the act
In cases of new farms, the 10 year period shall begin form the first year of
commercial production and operation, as determined by DAR
The government shall initiate necessary steps to acquire these lands, upon
payment of just compensation, preferably in favor of the organized
cooperatives or associations, which shall hereafter manage the said lands for
the worker-beneficiaries.
Lands Covered
 Government owned lands devoted to or suitable for agriculture;
 Alienable and disposable lands of the public domain devoted to or suitable
for agriculture;
 Public domain lands in excess of the specific limits as determined by
Congress; and
 Private lands devoted to or suitable for agricultural products raised or that
can be raised thereon.
Exclusions from the Coverage of CARL
1. Under Section 10 , 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.
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.
Just Compensation
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
Mode of Payment
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.
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
Exemption from Taxes and Fees
 Capital Gains
 Registration Fees
 Other taxes and fees for the conveyance and transfer thereof
 All arrearages in real property taxes, without penalty to interest, shall be
deductible from the compensation to which the owner is entitled.
 All fees and other charges, patents, titles and documents required for the
implementation of CARP
Land distribution to qualified beneficiaries
Who are qualified beneficiaries?
 Agricultural lessees and share tenants;
 Regular farmworkers;
 Seasonal farmworkers;
 Other farmworkers;
 Actual tillers or occupants of public lands;
 Collectives or cooperatives of the above beneficiaries; and
 Others directly working on the land
Who are disqualified as beneficiaries?
 Beneficiaries under PD 27 who have culpably sold, disposed of, or
abandoned their land;
 Negligence or misuse of the land or any support extended to them;
 Those who owns at least 3 hectares of agricultural land; and
 Those whose lands have been the subject of foreclosure by the Land
Bank of the Philippines.
 Awards
Emancipation Patents (Eps)
Issued for lands covered under Operation Land Transfer of PD 27
Certificate of Land Ownership Award (CLOAs)
Issued for private agricultural lands and resettlement areas covered under RA
6657 (Comprehensive Agrarian Reform Law of 1988)
Free Patents
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).
Certificates of Stewardship Contracts
Issued for forest areas under the Integrated Social Forestry Program
Manner of Payment
Paid by the beneficiaries in 30 annual amortizations at 6% interest per annum
First 3 years after the awards may be reduced by the PARC: Provided:
First 5 annual payments is not more than 5% of the value of the annual gross
production as established by DAR
Should payment after the 5th year exceed 10% of the value of the annual gross
production, and failure is not with the beneficiary, the LBP may reduce the
interest rate or the principal obligation
a. 30 annual amortizations (First 3 years may be at reduced amounts);
b. 6% interest per annum
c. First five annual payments may not be more than 5% of the value of
the annual gross production
Ownership Limitations on the Awarded Lands
May not be sold, transferred or conveyed except through hereditary
succession, or to the government, or to the LBP or to other qualified
beneficiaries for 10 years with rights to repurchase by the spouse or children
of the transferee from the government or LBP within 2 years
Conversion may only be after 5 years from the award when it is no longer
economically feasible and sound for agricultural purposes or the locality has
become urbanized and the land will have greater economic value for
residential, commercial or industrial purpose.
Improvement of tenurial relations
Leasehold Tenancy
Tenancy
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
Types of Tenancy Relation
 Sharehold Tenancy
 Leasehold Tenancy
Leasehold vs Sharehold Tenancy
Leasehold
Expenses of production are shouldered by the tenant
Management of the property is solely on the tenant
Only obligation is to pay the rent
Sharehold
Expenses of production are shouldered by both the tenant and the landowner
Tenant and landowner may co-manage the property
Division of the proceeds of the harvest in proportion to their contribution
Leasehold vs Civil Law Lease Conversion
Leasehold The act of changing the current use of a piece of land into some other use, to
Limited to agricultural lands wit:
The tenant must personally cultivate the land a. For residential, commercial, industrial, and other non-
For agricultural purposes only agricultural purposes;
b. For another type of agricultural activity such as livestock,
Civil Law Lease poultry, and fishpond the effect of which is to exempt the
Concerns both rural and urban properties land from CARP coverage;
Tenant need not to personally cultivate the land c. For non-agricultural use other than that previously
May be executed for any lawful purpose authorized.
Change of crops to commercial crops or high value crops is considered as
Leasehold Relation conversion in the use or nature of the land.
Purpose
To protect and improve the tenurial and economic status of the farmers in Reclassification
tenanted lands. The act of specifying how agricultural lands shall be utilized for non-
agricultural uses such as residential, industrial, and commercial, as embodied
Application in the land use plan, subject to the requirements and procedures for land use
Applies to: conversion.
Tenanted lands under the retention limit; and
Tenanted lands not yet acquired under the CARL Mere reclassification does not automatically allow the landowner to change
its use. Conversion is needed before he can use the agricultural land for some
Production Sharing Plan other purpose.
Applies only while the land transfer is being processed and finalized.
Requires individuals or entities owning, or operating an agricultural land Who can apply for conversion?
under lease or management contract to adopt a production sharing with farm  The beneficiary; or
workers in the following manner:  The landowner with respect only to his retained area which is tenanted.

Production Sharing Conditions for Application for Conversion

a. If more than P5M gross sales per year are realized:
i. 3% of the gross sales is to be distributed to regular and other
farm workers, over and above the compensation they
currently receive
ii. 1% of the gross sales is to be distributed to the managerial,
supervisory and technical employees
b. If profits are realized, additional 10% of the net profit after tax is to be
distributed to regular and other farmworkers
When the land is no longer economically fit for agricultural purposes; or
When the locality has become urbanized and the land will have a greater
economic value for residential, commercial or industrial purposes.
Lands that Cannot be Converted
 Agricultural lands within protected areas under the National Integrated
Protection Areas System (NIPAS), including watershed, and recharged
areas of aquifers, as determined by the DENR
 Irrigated lands delineated by the DA and/or the National Irrigation
Administration (NIA), where water is available to support rice and other
crop production as well as irrigated lands where water is not available for
rice and other crop production but are within areas programmed for
irrigation facility rehabilitation by the DA and/or the NIA;
 All irrigable lands already covered by irrigation projects with firm funding
commitments,as delineated by DA and/or the NIA;
 All agricultural lands with irrigation facilities operated by private
organizations
Mechanisms for program implementation
Functions and Duties
 Formulate and implement policies, rules and regulations necessary to
implement the CARP;
 Recommend small economy areas;
 Schedule the acquisition and distribution of specific agrarian reform
areas; and
 Control mechanisms for evaluating the owner’s declaration of current
fair market value.
xi. Administrator of National Irrigation Authority;
xii. 3 representatives of affected landowners to
represent Luzon, Visayas and Mindanao; and
xiii. 6 Representatives of agrarian reform beneficiaries, 2
each from Luzon, Visayas and Mindanao, provided
that one of them shall be from cultural communities
Executive Committee (EXCOM) of PARC
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.
PARC EXCOM
Composition:
a. Chairman: Secretary of Agrarian Reform
b. Members: designated by the President, taking into account
Article XIII, Section 5 of the Constitution

Presidential Agrarian Reform Council (PARC) PARC Secretariat

Composition A PARC Secretariat is established to provide general support and coordinative
a. Chairman: President of the Philippines services such as inter-agency linkages, program and project appraisal and
b. Vice-Chairman: Secretary of Agrarian Reform evaluation and general operations monitoring for the PARC.
c. Members:
i. Secretary of Agriculture; Composition
ii. Secretary of Environment and Natural Resources; Headed by the Secretary of Agrarian Reform;
iii. Secretary of Budget and Management; Assisted by an Undersecretary and supported by a staff whose composition
iv. Secretary of Local Government; shall be determined by the PARC EXCOM
v. Secretary of Public Works and Highways;
vi. Secretary of Trade and Industry; Provincial Agrarian Reform Coordinating Committee (PARCCOM)
vii. Secretary of Finance; Composition
viii. Secretary of Labor and Employment; a. Chairman: Presidential appointee recommended by the PARC
ix. Director-General of National Economic and EXCOM;
Development Authority; b. Executive Officer: Provincial Agrarian Reform Officer;
x. President of Land Bank of the Philippines; c. Members:
 i. Representative from the Department of Agriculture; e. Representatives of the Barangay Council;
ii. Representative from the DENR; f. Representatives of non-governmental organization (NGOs);
iii. Representative from the LBP; g. Representatives of landowners;
iv. One representative each from existing farmers’ h. Department of Agriculture official assigned to the area;
organizations, agricultural cooperatives and non- i. DENR official assigned to the area;
governmental organizations in the province; j. DAR Agrarian Reform Technologist assigned to the area; and
v. Two representatives from farmers and farmworker k. LBP representative.
beneficiaries, at least one of whom shall be a farmer
or farmworker representing the principal crop of the Functions of the BARC
province; and a. Mediate and conciliate between parties involved in an agrarian
vi. In areas where there are cultural communities, there dispute;
shall be one representative from them. b. Assist in the identification of qualified beneficiaries and landowners
within the barangay;
Duties and Functions of PARCCOM c. Attest to the accuracy of the initial parcellary mapping of the
 Coordinate and monitor the implementation of CARP in the province; beneficiary's tillage;
 Provide information on the following: d. Assist qualified beneficiaries in obtaining credit from lending
i. Provision of the CARP; institutions;
ii. Guidelines issued by the PARC; and e. Assist n the initial determination of the value of the land;
iii. Progress of the CARP in the province f. Assist the DAR representative in the preparation of periodic reports
on the CARP implementation;
Manner of Implementation of the Agrarian Reform Program g. Coordinate the delivery of support services to beneficiaries;
Province-by-province basis because of the peculiarities and needs of each h. Participate and give support in the implementation of CARP; and
province; such as the kinds of crops needed or suited, land distribution i. Perform such other functions as may be assigned by the PARC and
workload, and other factors prevalent or obtaining in the area. DAR.

The PARCOM coordinates and monitors the implementation of the agrarian

reform program in the province. FINANCING PROGRAMS

Barangay Agrarian Reform Committee (BARC)
Composition
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;
Funding Source
The amount needed to further implement CARP for the period of 10 years
upon approval shall be funded from the Agrarian Reform Fund created under
Sections 20 and 21 of EO 229
Sources of funding or appropriations
a. Proceeds of the sales of the Privatization and Management Office
(PMO);
 b. All receipts from assets recovered and from sales of ill-gotten wealth
recovered through the Presidential Commission on Good
Government;
c. Proceeds of the disposition of the properties of the Government in
foreign countries;
d. Portion of amounts accruing to the Philippines from all sources of
official foreign grants and concessional financing from all countries, to
be used for the specific purposes of financing production credits,
infrastructures, and other support services required by this Act;
e. Other government funds not otherwise appropriated
Administrative adjudication
RESOLUTION OF AGRARIAN DISPUTES
Department of Agrarian Reform
 Quasi- judicial Jurisdiction
 To determine and adjudicate agrarian reform matters
 Exclusive original jurisdiction over all matter involving the
implementation of agrarian reform, except those under the exclusive
jurisdiction of the DA and the DENR
 Appellate jurisdiction over orders and decisions of the Agrarian
Reform Adjudicators
Quasi-judicial Powers of the DAR
 Hear and decide cases within its jurisdiction;
 Summon witnesses;
 Administer oaths;
 Take testimony;
 Issue subpoena ad testificandum or duces tecum;
 Issue writs of execution; and
 Punish direct or indirect contempt.
Provincial Agrarian Reform Adjudicators (PARAD)
Generally has primary and exclusive jurisdiction to hear and decide agrarian
disputes.
Agrarian Dispute
 Any controversy relating to tenurial arrangements, whether leasehold,
tenancy, stewardship or otherwise, over lands devoted to agriculture,
including disputes concerning farmworkers’ associations or
representatives of persons in negotiating, fixing, maintaining, changing,
or seeking to arrange terms or conditions of such tenurial arrangements.
 Any controversy relating to compensation of lands acquired under this
Act and other terms and conditions of transfer of ownership from
landowners to farmworkers, tenants and other agrarian reform
beneficiaries , whether the disputants stand in the proximate relation of
farm operator and beneficiary, landowner and tenant, or lessor and
lessee.
Jurisdiction of PARAD
Primary and Exclusive jurisdiction to determine and adjudicate matters
pertaining to:
a. Rights and obligations of persons engaged in the
management, cultivation, and use of all agricultural lands
covered by the CARL and other related agrarian laws;
b. Preliminary administrative determination of reasonable and
just compensation of lands acquired under PD 27 and the
CARP;
c. Annulment or rescission of lease contracts or deeds of sale of
lands under the administration and disposition of the DAR or
LBP, including amendment of titles of the agricultural lands
under the administration and disposition of the DAR, LBP, as
well as EPs issued under PD 266, Homestead Patents, Free
Patents, and miscellaneous sales patents to settlers in
settlement and re-settlement areas under the administration
and disposition of DAR
d. Ejectment and dispossession of tenants or lease-holders;
e. Sale, alienation, pre-emption, and redemption of agricultural
lands under the coverage of the CARL, as amended or other
agrarian laws;
 f. Correction, partition, secondary and subsequent issuances
such as reissuance of lost or destroyed owner’s duplicate copy
and reconstitution of Certificates of Land Ownership Award
and Emancipation Patents which are registered with the LRA;
g. Review of leasehold rentals and fixing of disturbance
compensation;
h. Collection of amortization payments, foreclosure and similar
disputes concerning the functions of the LBP, and payments
for lands awarded under agrarian laws, including payment for
residential, commercial, industrial lots within the settlement
and resettlement areas under the administration and
disposition of the DAR;
i. Boundary disputes over lands under the administration and
disposition of the DAR and LBP, which were transferred,
distributed, or sold to tenant-beneficiaries and covered by
deeds of sale, patents, and certificate of title;
j. Cases previously falling under the original and exclusive
jurisdiction of the defunct Court of Agrarian Relations under
Sec 12 of PD 946 except those cases falling under the proper
courts or other quasi-judicial bodies; and
k. Such other agrarian cases, disputes, matters or concerns
referred to it by the Secretary of the DAR.
Department of Agrarian Reform Adjudication Board (DARAB)
Adjudication of cases deals with disputes pertaining to tenancy relations;
valuation of lands acquired by DAR under compulsory acquisition mode; rights
and obligations of persons, whether natural or juridical, engaged in the
management cultivation and use of all agricultural lands; ejectment and
dispossession of tenants/leaseholders; review of leasehold rentals; and other
similar disputes.
Primary and Exclusive Jurisdiction of DARAB
1. Cases involving rights and obligations of persons, whether natural or
juridical, engaged in the management cultivation and use of all
agricultural lands;
2. Preliminary administrative determination of just compensation;
3. Annulment or cancellation of lease contracts or deeds of sale or their
amendments involving lands under the administration and disposition
of the DAR or LBP
4. Ejectment and dispossession of tenants or leaseholders;
5. Sale, alienation, pre-emption, and redemption of agricultural lands;
6. Correction, partition, cancellation, secondary, and subsequent
issuances of reigstered CLOAs and EPs;
7. Review of leasehold rentals;
8. Collection of amortizations on payments for lands awarded under PD
No. 27, including payment for residential, commercial and industrial
lots within settlement and resettlement areas;
9. Annulment or rescission of lease contracts and deeds of sale and the
cancellation or amendments of titles of lands under the
administration of DAR, homestead patents, free patents,
miscellaneous sales patents, to setters in settlement and
resettlement areas;
10. Boundary disputes;
11. Determination of title of agricultural lands where the issue is raised in
an agrarian dispute;
12. Cases previously falling under the original and exclusive jurisdiction of
the defunct Court of Agrarian Relations under Section 12; PD No. 946;
13. Such other agrarian cases, disputes, matters or concerns referred to it
by the Secretary of DAR
Exclusive cognizance and prerogative of cases by the DAR Secretary:
1. Classification and identification of landholdings for coverage under
the agrarian reform program and the initial issuance of CLOAs and
EPs, including protests or oppositions thereto and petitions for lifting
of such coverage;
2. Classification, identification, inclusion, exclusion, qualification, or
disqualification of potential/actual farmer-beneficiaries;
3. Subdivision surveys of land under CARP;
4. Recall, or cancellation of provisional lease rentals, Certificates of Land
Transfers (CLTs) and CARP Beneficiary Certificates (CBCs) in cases
outside the purview of Presidential Decree (PD) No. 816, including the
 issuance, recall, or cancellation of EPs or CLOAs not yet registered
with Register of Deeds;
5. Exercise of the right of retention by the landowner;
6. Application for exemption from coverage under Sec 10 of RA 6657
7. Application for exemption pursuant to DOJ Opinion No. 44 (1990);
8. Exclusion from CARP coverage of agricultural land used for livestock,
swine, and poultry raising;
9. Cases of exemption/exclusion of fish pond and prawn farms from the
coverage of CARP pursuant to RA 7881;
10. Issuance of Certificate of exemption for land subject Voluntary Officer
to Sell (VOS) and Compulsory Acquisition (CA) found unsuitable for
agricultural purposes ;
11. Application for conversion of agricultural land to residential,
commercial, industrial, or other non agricultural uses and purposes
including protests or oppositions thereto;
12. Determination of the rights of agrarian reform beneficiaries to
homelots;
13. Disposition of excess area of the tenants/farmer-beneficiary’s
landholdings;
14. Increase in area of tillage of a tenant/farmer-beneficiary;
15. Conflict of claims in landed estates administered by DAR and its
predecessors
Special Agrarian Court (SAC)
 The Supreme Court shall designate at least 1 branch of the RTC within
each province to act as a Special Agrarian Court
 Has original and exclusive jurisdiction over:
 All petitions for the determination of just compensation to
landowners;
 The prosecution of all criminal offenses under the Article.
Procedure in Agrarian reform cases
Filing of Petition
 An action before the Adjudicator shall be initiated by filing a duly sworn
complaint or verified petition with the Adjudicator in the Province where
the land in question is located.
 Payment of prescribed fees in full
 May be amended or supplemented any time before a responsive
pleading is served or, in case of a reply, within 5 days after service.
 No forum shopping
 Joinder of parties over the same issues shall be implemented if
warranted
Parties to the case
 Must be initiated and defended in the name of the real party in interest.
All parties having interest in the matter shall be joined either as the
complainant or petitioner.
 Heirs of the deceased party may be allowed to substitute the deceased
without appointing an executor or administrator
Service of Pleadings
 The opposing party shall be served with a copy of the complaint in the
manner provided by the Rules. Proof of service shall be duly recorded in
the case.
 Summons, notices and copies of resolutions, or orders shall be served
personally as far as practicable, or by registered mail upon the party
himself, his counsel, or duly authorized representative.
Preliminary Conference
 Upon filing and service of the last pleading or receipt of the BARC
certification of non-settlement, the Adjudicator shall set the case for
preliminary conference;
 During the preliminary conference and at any stage of the proceedings,
all efforts and steps for amicable settlement of the case must be exerted
by the Board or the Adjudicator
Proceedings
 Proceedings are non-litigious in nature
 Adjudicator shall personally conduct the hearing with full control of the
proceedings.
 Only one motion for reconsideration is allowed.
Final Orders
 Decisions, resolutions or final orders of the Adjudicator must be in
writing, prepared and signe by him and filed with the Regional or
Provincial Clerk of Adjudicator.
 The Clerk shall indicate thereon the date of promulgation thereof
 If no appeal or motion for reconsideration is filed within the
reglementary period, the said decision, resolution or final order shall be
entered in the Book of Entries of Decisions by the Clerk of the Board and
the Regional or Provincial Clerk of Adjudicator, respectively.
 Date of finality shall be deemed to be the date of its entry
Appeal
May be taken to the Board from a resolution, decision or final order of the
Adjudicator that completely disposes of the case by either or both of the
parties within a period of 15 days from the receipt of the said resolution,
decision or final order appealed from or of the denial of the movant’s motion
for reconsideration
Appeal to the Court of Appeals
 Any decision, order, resolution, award or ruling of the Board on any
agrarian dispute shall be brought on appeal within 15 days from the
receipt of a copy thereof, to the Court of Appeals in accordance with the
Rules of Court
 Only the Supreme Court can issue a restraining order or preliminary
injunction against the Board or its Adjudicators
Relief from Final Order
Any decision, resolution or final order rendered by the Adjudicator by means
of fraud, accident, mistake and excusable negligence and such party has no
other remedy available to him in the ordinary course of law, may file a
petition for relief of judgment with the said Adjudicator to set aside such
decision.
Support services
Office of Support Services
Provide general support and coordinative services in the implementation of
the program, particularly in carrying out the provisions of the following
services to farmer beneficiaries and affected land owners.
General Support and Coordinative Services:
1. Irrigation facilities;
2. Infrastructure development and public work 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’ organization;
8. Undertake research, development and dissemination of information
on agrarian reform, plants and corps best suited for cultivation and
marketing, 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 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.
Support Services to Beneficiaries
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
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.
Land Consolidation
Promotes equal distribution of landholdings, to provide the needed
infrastructure in agriculture, and to conserve soil fertility and prevent erosion.
Thank you

Support Services to Landowners

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 instrumentalities;
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.