Agrarian Law by Ungos Art. 1-78

farmworkers, to receive a just
CHAPTER I share of the fruits thereof

Preliminary Chapter
Social Legislation
SECTION 1. TITLE. — This Act shall be
 No precise definition for social
known as the Comprehensive Agrarian
legislation.
Reform Law of 1988.
 It covers Labor laws, Agrarian Laws
 Agrarian: Latin word: “Ager” – “a field” and Welfare Laws. (L-A-W)
- relating to land or to the ownership  It emphasis more on the aspect of
or division of land public good and social welfare.
 These are laws or statutes enacted
Agrarian Law: refers to the distribution of under the social justice clause to the
public agricultural lands and large estates, constitution.
as well as the regulation of the relationship
between the landowners and the farmer who Agrarian Reform
works on the land.
 The redistribution of Lands,
 It embraces all laws that govern and regardless of crops of fruits produced
regulate the rights and relationship to farmers and regular farmworkers
over agricultural lands between who are landless, irrespective of
landowners, tenants, lessees or tenurial arrangement, to include the
agricultural workers. totality of factors and support
 FOCUS: Agrarian Reform = services designed to lift the economic
redistribution of Agricultural Land status of the beneficiaries and all
other arrangements alternative to the
 Basic Law on Agrarian Reform: physical redistribution of lands, such
1. Comprehensive Agrarian Reform as:
Law of 1988 1. Production or Profit-sharing
2. Tenant Emancipation Law 2. Labor Administration
(supplement on CARL 1988)
3. Distribution of shares of
3. Code of Agrarian Reform of the stocks
Philippines  It will allow beneficiaries to receive a
 Primary Objective: To break up just share of the fruits of the lands
agricultural lands and transform them they work.
into economic-size farms be owned by  It is not confined to distribution of
the farmers themselves, with the end Lands to landless farmers and regular
in view of uplifting their socio- farmworkers it includes the ff. above.
economic status.
 Agrarian Reform to land distribution is
 It is founded on: The right of the simply not feasible, considering there
farmers and regular farmworkers who is not enough agricultural land that
are landless, to own directly or can be distributed to every farmer or
collectively the lands they till or in regular farmworker.
the case of other farm workers to
receive a just share in the fruits
Comprehensive Agrarian Reform Law of 1988
thereof.
 Basis for the implementation of
- on the right of farmers and Comprehensive Agrarian Reform
regular farmworkers, who are Program
landless, to own directly or
 It aimed at liberating the vast
collectively the lands they till
potential wealth of Philippine
or, in the case of other
agriculture by giving the majority of
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AGRARIAN LAW REVIEWER – (UNGOS BOOK)
Filipinos a real and rightful stake in  PD 1637 - Proclaimed 20,312 hectares
the land. of land as town site reservation, part
of which was the land of Natalia
o Antipolo, Montalban, San
Mateo
Comprehensive Agrarian Reform Program  Reason: population overspill in the
 It is a social justice and poverty metropolis
alleviation program which seeks to  Private landowners were allowed to
empower the lives of Agrarian Reform develop properties into low cost
beneficiaries through equitable housing subdivisions with reservation
distribution and ownership of the land  Natalia was allowed by HLURB to
based on the principle of land to the develop land into a subdivision
tiller.  CARL then took effect 9 years later
 It provides opportunities for a (June 15 1988)
dignified and improved quality of life  Natalia sought to cancel DAR’s Notice
of the agrarian reform beneficiaries of Coverage on undeveloped portions
of the subdivision
 Natalia claimed that the land was no
REASON FOR ALTERNATIVES TO LAND longer covered by CARL because the
DISTRIBUTION - Confining agrarian reform to PD converted the land to a town site
land distribution is not feasible because reservation and was therefore no
there is not enough agricultural land to be longer agricultural land
distributed to every farmer or regular farm  HELD: Undeveloped portions of
workers Natalia properties are NOT covered
by the CARL because they are NOT
CARL APPLIES ONLY TO AGRICULTURAL agricultural land. Agricultural land
LAND – Lands does NOT include commercial,
industrial or residential land.
1) Devoted to agricultural activities as
defined in the Comprehensive CONSTITUTIONALITY OF CARP – valid
Agrarian Reform Law of 1988 exercise of police power
2) Not classified as Mineral or Forest by
the Department of Environment and SECTION 2. DECLARATION OF PRINCIPLES
Natural Resources AND POLICIES.
3) Prior to June 15, 1988, not classified PRIMARY OBJECTIVE OF AGRARIAN

for residential, commercial or REFORM
industrial use under a local  Breakup agricultural lands to
government town plan and zoning transform them into economic size
ordinances. farms to be owned by farmers
themselves, to uplift their economic
status.
CARL DOES NOT APPLY TO: (CRIM-F)
1. Commercial Land  Founded on the right of landless
2. Residential Land farmers and landless regular farm
3. Industrial Land workers to directly or collectively
own the lands they till or in case of
4. Mineral Land
farm workers, to receive a just share
5. Forest Land
in fruits thereof.
 Does not guarantee improvement in
NATALIA REALTY DEV V. DAR (townsite lives of the agrarian reform
reservation not agricultural land) beneficiaries, but it merely provides
 Landowner: Natalia Realty Inc. for possibility of favorable chance of
uplifting economic status of the
agrarian reform beneficiaries
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OWNER CULTIVATORSHIP- refer to the state industrial, commercial or
of a person who not only provides capital and residential lands shall take
management, but also personally cultivates into account, tillers' rights and
his own land with the aid of his immediate national food security.
family and household. 6) Further, the State shall protect
Filipino enterprises against
MEANING OF ECONOMIC FAMILY SIZE FARM unfair foreign competition and
- area of farm land that permits efficient use trade practices.
of labor and capital resources of the farm
family and will produce a sufficient income 7) The State recognizes that there is
to provide for: not enough agricultural land to be
divided and distributed to each
 Modest standard of living to meet farmer and regular farmworker so
a farm family’s needs for food, that each one can own his/her
clothing, shelter and education economic-size family farm.
with  A meaningful agrarian reform
 Possible allowance for payment of program:
yearly installments on land and o to uplift the lives and
 Reasonable reserves to absorb
economic status of the farmer
yearly fluctuations in income
and his/her children can only
be achieved through
 IT IS THE POLICY OF THE simultaneous industrialization
STATE: aimed at developing a self-
1) To pursue a Comprehensive reliant and independent
Agrarian Reform Program national economy effectively
(CARP). controlled by Filipinos.
2) The welfare of the landless  A more equitable distribution and

farmers and farmworkers ownership of land, with due regard to
will receive the highest the rights of landowners to just
consideration compensation to the ecological needs
3) To promote social justice of the nation, shall be undertaken to
and to move the nation provide farmers and farmworkers with
toward sound rural the opportunity to enhance their
development and dignity and improve the quality of
industrialization, and the their lives through greater
establishment of owner productivity of agricultural lands.
cultivator ship of economic-  To this end, the State
size farms as the basis of shall encourage and undertake the
Philippine agriculture. just distribution of all agricultural
4) The State shall promote lands, subject to the priorities and
industrialization and full retention limits set forth in this Act,
employment based on sound taking into account ecological,
agricultural development and developmental, and equity
agrarian reform, through considerations, and subject to the
industries that make full and payment of just compensation.
efficient use of human and  The State shall respect the right of
natural resources, and which small landowners, and shall provide
are competitive in both incentive for voluntary land-sharing.
domestic and foreign markets.
 As much as practicable, the
5) Provided, That the conversion implementation of the program shall
of agricultural lands into be community-based to assure,
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among others, that the farmers shall SECTION 3. DEFINITIONS. — For the
have greater control of farmgate purpose of this Act, unless the context
prices, and easier access to credit. indicates otherwise:
 The State shall recognize the right of AGRARIAN REFORM - redistribution of lands,
farmers, farmworkers and regardless of crops or fruits produced, to
landowners, as well as cooperatives farmers and regular farmworkers who are
and other independent farmers’ landless, irrespective of tenurial
organizations, to participate in the arrangement to include the totality of
planning, organization, and factors and support services designed to lift
management of the program, and the economic status of the beneficiaries and
shall provide support to agriculture all other arrangements alternative to the
through appropriate technology and physical redistribution of lands, such as:
research, and adequate financial,
production, marketing and other  production or profit-sharing,
support services.  labor administration, and
 distribution of shares of stocks,
 The State shall apply the principles of - which will allow beneficiaries to
agrarian reform, or stewardship, receive a just share of the fruits of
whenever applicable, in accordance the lands they work.
with law, in the disposition or
utilization of other natural resources, AGRICULTURE, AGRICULTURAL
including lands of the public domain, ENTERPRISE OR AGRICULTURAL ACTIVITY -
under lease or concession, suitable to means the cultivation of the soil, planting of
agriculture, subject to prior rights, crops, growing of fruit trees, including the
homestead rights of small settlers harvesting of such farm products, and other
and the rights of indigenous farm activities and practices performed by a
communities to their ancestral lands. farmer in conjunction with such farming
operations done by persons whether natural
 By means of appropriate incentives, or juridical.
the State shall encourage the
formation and maintenance of AGRICULTURAL LAND - land devoted to
economic-size family farms to be agricultural activity as defined in this Act
constituted by individual beneficiaries and not classified as mineral, forest,
and small landowners. residential, commercial or industrial land.
 The State shall be guided by the AGRARIAN DISPUTE - any controversy
principles that land has a social relating to tenurial arrangements, whether
function and land ownership has a leasehold, tenancy, stewardship or
social responsibility. otherwise, over lands devoted to agriculture,
 Owners of agricultural land have the including disputes concerning:
obligation to cultivate directly or  farmworkers' associations
through labor administration the lands  representation of persons in
they own and thereby make the land negotiating, fixing, maintaining,
productive. changing,
 The State shall provide incentives to  seeking to arrange terms or
landowners to invest the proceeds of conditions of such tenurial
the agrarian reform program to arrangements.
promote industrialization,
- It includes any controversy relating to
employment and privatization of
compensation of lands acquired under
public sector enterprises.
this Act and other terms and
conditions of transfer of ownership
from landowners to farmworkers,
tenants and other agrarian reform
beneficiaries, whether the disputants
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stand in the proximate relation of SEASONAL FARMWORKER - a natural person
farm operator and beneficiary, who is employed on a recurrent, periodic or
landowner and tenant, or lessor and intermittent basis by an agricultural
lessee. enterprise or farm, whether as a permanent
or a non-permanent laborer, such as
IDLE OR ABANDONED LAND - any agricultural "dumaan", "sacada", and the like.
land not cultivated, tilled or developed to
produce any crop nor devoted to any specific OTHER FARMWORKER - a farmworker who
economic purpose continuously for a period does not fall under paragraphs (g), (h) and (i).
of three (3) years immediately prior to the
receipt of notice of acquisition by the COOPERATIVES - refer to organizations
government as provided under this Act composed primarily of small agricultural
producers, farmers, farmworkers, or other
- It does not include land that has agrarian reform beneficiaries who voluntarily
become permanently or regularly organize themselves for the purpose of
devoted to non-agricultural purposes. pooling land, human, technological, financial
- It does not include land which has or other economic resources, and operated
become unproductive by reason of on the principle of one member, one vote.
force majeure or any other fortuitous
event: - A juridical person may be a member
- Provided, that prior to such event, of a cooperative, with the same rights
such land was previously used for and duties as a natural person.
agricultural or other economic RURAL WOMEN - refer to women who are
purpose. engaged directly or indirectly in farming
FARMER - a natural person whose primary and/or fishing as their source of livelihood,
livelihood is cultivation of land or the whether paid or unpaid, regular or seasonal,
production of agricultural crops livestock or in food preparation, managing the
and/or fisheries either by himself or primarily household, caring for the children, and other
with the assistance of his immediate farm similar activities.
household, whether the land is owned by NOTES:
him/her, or by another person under a
leasehold or share tenancy agreement or AGRICULTURE, AGRICULTURAL
arrangement with the owner thereof ENTERPRISE OR AGRICULTURAL ACTIVITIES
– refer to cultivation of the soil, planting of
crops, growing of fruit trees including the
FARMWORKER - a natural person who harvesting of such products.
renders service for value as an employee or - other farm activities and practices
laborer in an agricultural enterprise or farm performed by a farmer.
regardless of whether his compensation is - Farming operations done by person
paid on a daily, weekly, monthly or "pakyaw" weather natural or juridical.
basis.
RAISING OF LIVESTOCK, POULTRY OR FISH
- The term includes an individual NOT EMBRACED IN THE TERM
whose work has ceased as a AGRICULTURE - Lands devoted to raising of
consequence of, or in connection livestock, poultry and swine are exempt from
with, a pending agrarian dispute and the agrarian reform program because they
who has not obtained a substantially are industrial land, not agricultural.
equivalent and regular farm
employment. LUZ FARMS V. SEC OF AGRA
REGULAR FARMWORKER - a natural person
who is employed on a permanent basis by an  Unconstitutional to include lands
agricultural enterprise or farm. devoted to raising of livestock,
poultry and swine within agriculture
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because no land is tilled and no crop
is harvested.
 Land is not the primary resource in
raising of livestock, poultry or swine.
 Does not sprout from land and are
not fruits of land.
History of Philippine Agrarian Laws:
Spanish Era Civil Code Governed the relationship between landowners and tenants
(Special
Provision for
Rural
Leases)
American Philippine It regulate the relationship between landlords and tenants on rice
Regime Rice Share land
Tenancy Act
Sugar It regulate the relationship between landlords and tenants on
Tenancy Act lands planted to sugarcane
Commonwe Commonwea It recognizes the testimony of the tenant as prima facie evidence
alth lth Act 53 of the terms of a tenancy contract that was not reduced in writing
Period in a language known to him.
Commonwea Amend the provisions of the Philippine Rice Share Tenancy Act
lth Act No.
178
Commonwea Amend the Sugar Tenancy Act by extending its application to
lth Act No. sugar farm workers.
271
Commonwea It provide security of tenure to agricultural tenants
lth Act No.
461
Commonwea Later amended Commonwealth Act No. 461
lth Act No.
608
After the Republic Act It amend the Philippine Rice Share Tenancy Act by introducing
Grant of No. 34 changes in crop division.
Independen
ce
Agricultural It repealed all the earlier tenancy laws except the Sugar Tenancy
Tenancy Act Act
of the
Philippines
Republic Act Amended Republic Act No. 34
No. 2263
Land Reform Setting in motion the expropriation of all tenanted estates.
Act of 1995 Scope: Limited to expropriation of private agricultural lands in
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excess of 300 hectares of contiguous area, if held by a natural
person and those in excess of 600 hectares if owned by
corporations
August 13, Agricultural It abolished share tenancy
1963 Land Reform It instituted the agricultural leasehold system.
Code Scope: Though expanded was limited by an order of the priority
based on utilization and area
Code of It amends the Agricultural Land Reform Code
Agrarian
Reform of
the
Philippines
After the President It provide for the transfer of lands primarily devoted to rice and
declaration Ferdinand E. corn to the tenants.
of Martial Marcos
Law Tenant
Emancipatio
n Law
Presidential Reorganized the Court of Agrarian Relations
Decree No.
946
Presidential It strengthen the security of tenure of tenants in non-rice or corn
Decree No. agricultural lands
1038
Presidential Later amended the Code of Agrarian Reform of the Philippines
Decree Nos.
251, 444,
1039 and
1817
July 17, President Declaring full land ownership in favor of beneficiaries under
1987 Corazon C. Presidential Decree No. 27
Aquino
(Transitory
Provisions of
the 1987
Constitution)
Executive
Order 228
Executive Providing the mechanics for its implementation
Order 229
Proclamation Instituting a Comprehensive Agrarian Reform Program
No. 131
June 10, Comprehensi To cover all public and private agricultural lands
1988 ve Agrarian
Reform Law
of 1988
Republic Act To amend certain provisions of the Comprehensive Agrarian
Nos. 7881, Reform Law of 1988
7905, 8532
and 9700
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CHAPTER II
Coverage
SECTION 4. SCOPE.
The Comprehensive Agrarian Reform Law of

1988 shall cover: (regardless of tenurial
arrangement and commodity produced) :
1) all public and private agricultural

lands as provided in Proclamation
No. 131 and Executive Order No. 229
2) other lands of the public domain
suitable for agriculture:
More specifically, the following lands are

covered by the carp:
- 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;
- All lands of the public domain in
excess of the specific limits as
determined by Congress in the
preceding paragraph;
- All other lands owned by the
Government devoted to or suitable for
agriculture; and
- All private lands devoted to or
suitable for agriculture regardless of
the agricultural products raised or
that can be raised thereon.
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A comprehensive inventory system in o Research and quarantine
consonance with the national land use plan centers o All lands with 18%
shall be: slope and over
- except those already
 instituted by the Department of
developed.
Agrarian Reform (DAR),
 in accordance with the Local
Government Code, SECTION 5. SCHEDULE OF
 Purpose: Properly identifying IMPLEMENTATION.
and classifying farmlands within one
(1) year from effectivity of this Act,  The distribution of all lands covered
without prejudice to the by this Act shall be implemented
implementation of the land immediately and completed within
acquisition and distribution. ten (10) years from the effectivity
thereof.
Lands not covered by the Agrarian Reform
Law: SECTION 6. RETENTION LIMITS.
 Except as otherwise provided in this

 Private lands with total are of 5 Act, no person may own or retain,
hectares and below directly or indirectly, any public or
o law says landholdings of private agricultural land.
landowners with a total area of
5 hectares and below shall not  the size of which shall vary
be covered for acquisition and according to factors governing a
distribution to qualified viable family-size farm such as:
beneficiaries 1)
commodity produced
2)
terrain
 Lands actually, directly and 3)
infrastructure
exclusively used for 4)
soil fertility as determined by
o parks, wildlife, forest reserves, the Presidential Agrarian
reforestation, fish sanctuaries Reform Council (PARC)
and breeding grounds, created hereunder
watersheds and mangroves  No case shall retention by the
o prawn farms and fishponds landowner exceed five (5) hectares.
(private lands)
 Three (3) hectares may be awarded to
 Lands actually, directly and each child of the landowner.
exclusively used and found to be  Subject to the following
necessary for qualifications:
o National defense
o School sites and campuses 1) that he is at least fifteen (15)
o Experimental farm stations years of age;
operated for educational 2) that he is actually tilling the
purposes land or directly managing the
o Seeds and seedling research farm
and pilot production center o
Church sites and convents  Provided, that landowners whose
appurtenant thereto lands have been covered by
o Mosque sites and Islamic Presidential Decree No. 27 shall be
allowed to keep the areas originally
centers appurtenant thereto o
retained by them thereunder:
Communal burial grounds and
cemeteries  Provided, further, that original
o Penal colonies and penal farms homestead grantees or their direct
actually worked by the inmates compulsory heirs who still own the
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original homestead at the time of the  Executed by the original
approval of this Act shall retain the landowner in violation of this Act
same areas as long as they continue shall be null and void.
to cultivate said homestead.
 Provided, however, that those
 The right to choose the area to be executed prior to this Act shall be
retained, which shall be compact or valid only when registered with the
contiguous, shall pertain to the Register of Deeds within a period of
landowner. three (3) months after the effectivity
of this Act.
 Provided, however, that in case the
area selected for retention by the  All Registers of Deeds shall inform
landowner is tenanted; the Department of Agrarian Reform
(DAR) within thirty (30) days of any
 the tenant shall have the option
transaction involving agricultural
to choose whether:
lands in excess of five (5) hectares.
1) to remain therein or be a
Notes:
beneficiary in the same; or
2) another agricultural land with Constitutional Basis for Landowner Retention
similar or comparable Rights: Article XIII, Section 4 of the 1987
features. Constitution
In case the tenant chooses to RATIONALE OF RETENTION RIGHTS:
remain in the retained area:
 It serves to mitigate the effects of
(a) he shall be considered a compulsory land acquisition by
leaseholder; and balancing the rights of the landowner
(b) shall lose his right to be and the tenant.
a beneficiary under this  Implementing the doctrine of Social
Act. Justice was not meant to perpetrate
In case the tenant chooses to an injustice against the landowner.
be a beneficiary in another
RETAINED AREA:
agricultural land:
(a) he loses his right as a  The land which is not supposed to
leaseholder to the land leave the landowner’s dominion.
retained by the  As long as the area to be retained is
landowner. compact and contiguous and does not
exceed the retention ceiling of five
 The tenant must exercise this option: hectares a landowner’s choice of the
area to be retained must be prevail
within a period of one (1) year

from the time the landowner

manifests his choice of the RETENTION RIGHT OF LANDOWNER
area for retention.  Landowner has right to retain not
 In all cases, the security of tenure of more than 5 hectares of his
the farmers or farmworkers on the landholdings
land prior to the approval of this Act o maximum retention of 5
shall be respected. hectares
 Retained area does not have to be
 Upon the effectivity of this Act, any:
personally cultivated by the
- sale landowner
- disposition o Cultivation can be done
- lease indirectly through labor
- management contract administration
- transfer of possession of private
lands WHEN TO EXERCISE RETENTION RIGHT:
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 Any time before the receipt of the  If landowner is deprived of right to
Notice of Coverage retention, he may file a petition for
 Upon receipt of Notice Coverage in cancellation of EP or CLOA issued to
cases of Compulsory Acquisition: the tenants
- Can exercise his right of o EP or CLOA may be cancelled
retention by signifying his intent if land covered is found to be
to retain within 60 days from the part of landowner’s retained
receipt of said notice. area
LAND OWNER HAS RIGHT TO CHOSE AREA

TO BE RETAINED
 Land owners choice of area to be WAIVER OF RETENTION RIGHTS:
retained prevails as long as:
o Chosen area must be The landowner waives his right to retain by
compact or contiguous committing any of the following acts or
o Does not exceed retention omissions:
ceiling of 5 hectares
1. Failure to manifest an intention to
 Landowner must exercise his right of
exercise his right of retention within
retention within 60 days from receipt
60 calendar days from the receipt of
of Notice of Coverage
notice of coverage.
LANDOWNER WHO ALREADY EXERCISED 2. Failure to state such intention upon
RETENTION RIGHTS UNDER PD 272 CANT offer to sell or application under the
EXERCISE RETENTION RIGHTS UNDER CARP Voluntary Land Transfer or Direct
Payment Schemes
 If landowner chooses to retain 5 3. Execution of document that he
hectares under CARL, 7 hectares expressly waives his right to retain
previously retained under PD 27 shall 4. Execution of a “Landowner Tenant
be immediately placed under CARP. Production Agreement and Farmer’s
Undertaking” or “Application to
CAN SPOUSES RETAIN 5 HECTARES EACH Purchase and Farmer’s Undertaking”
UNDER THE AGRARIAN REFORM LAW covering subject Property.
 Conjugal or Absolute Community –
5. Execution and submission of any
spouses can only retain 5 hectares
document indicating that he is
 Separation of property – spouses can
consenting to the Comprehensive
retain 5 hectares each or a total of 10
Agrarian Reform Program coverage of
hectares
his entire landholdings.
FAILURE OF LANDOWNER TO EXERCISE 6. Performance of any act constituting

RIGHT OF RETENTION - Municipal Agrarian estoppel by laches, warranting a
Reform Officer will designate retained area presumption that he abandoned his
for landowner if landowner fails to exercise right or declined to assert it.
his right of retention within allotted time
SUPPOSE THE RETENTION AREA CHOSEN
CAN A LANDOWNER EXERCISE RIGHT TO BY THE LANDOWNER IS TENANTED, WHAT
RETENTION OVER THE LAND WHICH HAS HAPPENS TO THE TENANT:
ALREADY BEEN COVERED BY AN  Tenant may choose:
EMANCIPATION PATENT OR CERTIFICATE o to remain therein or
OF LAND OWNERSHIP AWARD : YES o be a beneficiary in the same
or another agricultural land
 Emancipation Patent or Certificate of with similar or comparable
Land Ownership Award to features
beneficiaries does not absolutely bar  Option must be exercised within a
landowner from retaining area period of 1 year from time landowner
covered manifests choice of area for retention
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 Law refers to an Agricultural Tenant, o manage and work on land in
not just any settler on the land a manner and method of
o Substantial evidence of cultivation and harvest
landlord tenant relationship which conform to proven
must exist farm practices
 Landowner has o mechanize all or any phase
engaged a person to of his farm work
personally cultivate an o deal with millers and
agricultural land processors and attend to
 Landowner is issuance of
compensated quedans and warehouse
 in terms of share in receipts for the produce
produce (share due him
tenancy) or o be afforded a home lot
o be indemnified for the cost
 in terms of price
and expenses incurred in
certain or
the cultivation, planting or
ascertainable in
harvesting and other
produce or in
expenses incidental to
money or both
improvement of his crop in
(leasehold
case he surrenders
tenancy)
or abandons his landholding
 mere occupation or
for just case or ejected
cultivation of an
therefrom
agricultural land will not
o buy the agricultural
ipso facto make tiller an
landholding under
agricultural tenant
reasonable terms
and condition in case the
 Landlord-Tenant relationship may be
agricultural lessor decides
determined by:
1. parties are the landowner and to sell the same
tenant or agricultural lessee o redeem the landholding at a
2. Subject matter – Agricultural reasonable price and
Land consideration in case
3. Consent exist between the agricultural lessor sold
parties to the relationship same to a third person
4. Purpose of the relationship: without his knowledge
Agricultural Production o Obligations of Agricultural
5. Personal cultivation exist on Lessee
the part of the tenant or o Cultivate and take care of
agricultural lessee the farm, growing crops and
6. Harvest is shared between other improvements on the
landowner and tenant or landholding as a good
agricultural lessee father of a family and
perform work in
 IF THE TENANT CHOOSES TO accordance with proven
REMAIN IN THE RETAINED AREA, HE farm practices
BECOMES AN AGRICULTURAL o Inform agricultural lessor
LESSEE within a reasonable time of
 Tenant becomes an Agricultural any trespass committed by
Lessee, not a tenant and is 3rd persons upon farm,
therefor no longer qualified to be without prejudice to his
an agrarian reform beneficiary direct action against the
 Rights of Agricultural Lessee trespasser
o peaceful possession and o Take reasonable care of
enjoyment of the land work animals and farm
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implements delivered to CHILDREN OF THE LANDOWNER ARE
him by agricultural lessor ENTITLED TO 3 HECTARES EACH
and see that they are not  if landowner owns more than 5
used for purposes other hectares of agricultural land, excess
than those intended or used area may be awarded to children of
by another without the landowner to extent of 3 hectares for
knowledge and consent of each child under the following
the agricultural lessor conditions
o Notify agricultural lessor at - child is at least 15 years
least 3 days before date of - child is actually tilling the
harvesting or threshing land or directly managing
o Pay lease rental to the farm
agricultural lessor when  Qualified child who owns less than 5
due hectares is still entitled to an award
of his parents landholding provided
TERM OF THE LEASE- AGRICULTURAL that his total area including the
LEASEHOLD RELATION IS EXTINGUISHED awarded area does not exceed the 5
BY: hectares ownership ceiling
- ex. Child already owns 3
 Abandonment or voluntary surrender hectares of agricultural
of land holding by lessee land, he can still be
 Absence of successor in event of awarded 2 hectares from
death or permanent incapacity of his parents landholding .
lessee  Land awarded to qualified children of
o Surviving Spouse landowners cannot be sold,
o Eldest direct descendant by transferred, conveyed within a period
consanguinity of 10 years except
o Next eldest descendant or  Hereditary Succession to the
descendants in order of government
their age  Children or spouse can repurchase
 Death or incapacity of the lessee land from government or land bank
does not necessarily extinguish the within 2 years from date of transfer
leasehold relation because the
leasehold continues between RIGHT OF HOMESTEADERS VIS A VIS RIGHT
agricultural lessor and person who OF TENANTS
can cultivate the landholding Constitution and CARL respect the
personally superiority of rights of homesteaders
 Agricultural leasehold is not over rights of tenants
terminated or extinguished by mere Art 13 Sec 6 - The State shall apply
expiration of the term or period in a the principles of agrarian reform
leasehold contract or stewardship, whenever
 Not terminated by transfer of applicable in accordance with
ownership or legal possession of the law, in the disposition or
landholding utilization of other natural
o if agricultural lessor transfers resources, including lands of
ownership or legal possession the public domain under lease or
of landholding, transferee concession suitable to
becomes agricultural lessor agriculture, subject to prior rights,
homestead rights of small
 EFFECT IF THE TENANT CHOOSES TO settlers, and the rights of
BE A BENEFICIARY - Tenant loses his indigenous communities to their
right to be a lessee of the land ancestral lands.
retained by the landowner CARL Sec 6 - that original homestead
grantees or their direct compulsory
heirs who still own the original
13
homestead at the time of the approval acquisition and distribution process
of this Act shall retain the same areas of the program:
as long as they continue to cultivate  Provided, further, That when these
said homestead lands have been subjected to
 Agrarian Reform is a remedial expropriation, the agrarian reform
measure pursuant to social justice beneficiaries therein shall be paid
precept of the Constitution but it was just compensation.
not meant to defeat the very purpose Notes:
of the enactment of CA 141/  EXPROPRIATION OF PRIVATE
Homestead Act AGRICULTURAL LANDS BY LGUS - if LGU
o enacted for welfare and expropriates private agricultural land for
protection of the poor actual, direct and exclusive public
o Gives a needy citizen a piece purposes, DAR should first subject it to
of land where he may build a agrarian reform coverage:
modest house for himself and 1) land should first be acquired by
family and plant what is the national government through
necessary for subsidence and DAR
satisfaction of life’s other 2) DAR will pay just compensation
needs to landowner
 Owners or direct compulsory heirs of 3) Thereafter, DAR will distribute
lands acquired through homestead the land to agrarian reform
grants of Free Patents under CA 141 beneficiaries
or the Homestead Act are entitled to 4) after distribution, LGs will
retain the entire area even if it expropriate the land and pay the
exceeds 5 hectares as long as agrarian reform beneficiaries just
o they were cultivating the same compensation
at the time of approval of
CARL June 15 1988
SECTION 6-B. REVIEW OF LIMITS OF LAND
o continue to cultivate the same
SIZE.
SECTION 6-A. EXCEPTION TO RETENTION Within six (6) months from the effectivity of
LIMITS. this Act: the DAR shall submit a
 Provincial, city and municipal comprehensive study on the land size
government units acquiring private
appropriate for each type of crop to Congress
agricultural lands by expropriation
for a possible review of limits of land sizes
 Other modes of acquisition to be used provided in this Act.
for actual, direct and exclusive public
purposes such as: IMPORT OF THE LAW
a) roads and bridges © implied recognition that uniform
b) public markets setting of 5 hectare limit for all
agricultural landholding may not be
c) school sites
feasible because of the economic
d) resettlement sites
differences for each agricultural
e) local government facilities products
f) public parks © lands planted to different crops
g) barangay plazas or squares cannot be treated identically
 Consistent with the approved local
comprehensive land use plan, shall
SECTION 7. PRIORITIES.
not be subject to the five (5)-hectare
retention limit under this Section and  The DAR shall plan and program
Sections 70 and 73(a) of Republic Act the final acquisition and distribution of
No. 6657, as amended:
all remaining unacquired and
 Provided, That lands subject to CARP undistributed agricultural lands from
shall first undergo the land
14
the effectivity of this Act until June 30,  The intended beneficiary shall state
2014. under oath before the judge of the
city or municipal court that he/she is
LANDS SHALL BE ACQUIRED AND willing to work on the land to make it
DISTRIBUTED AS FOLLOWS: productive and to assume the
Phase One: obligation of paying the amortization
for the compensation of the land and
 During the five (5)-year extension the land taxes thereon;
period, all remaining lands above fifty  All lands foreclosed by government
(50) hectares shall be covered for financial institutions; all lands
purposes of agrarian reform upon the acquired by the Presidential
effectivity of this Act. Commission on Good Government
 All private agricultural lands of (PCGG); and all other lands owned by
landowners with aggregate the government devoted to or suitable
landholdings in excess of fifty (50) for agriculture, which shall be
hectares which have already been acquired and distributed immediately
subjected to a notice of coverage upon the effectivity of this Act, with
issued on or before December 10, the implementation to be completed
2008; by June 30, 2012;
o rice and corn lands under Phase Two:
Presidential Decree No. 27;
(a) Lands twenty-four (24) hectares up to
o all idle or abandoned lands;
fifty (50) hectares shall likewise be
o all private lands voluntarily covered for purposes of agrarian reform
offered by the owners for agrarian upon the effectivity of this Act.
reform:
o All alienable and disposable
 Provided, That with respect to public agricultural lands;
voluntary land transfer, only those
o all arable public agricultural
submitted by June 30, 2009 shall be
lands under agro-forest,
allowed:
pasture
 Provided, further, That after June 30,
o agricultural leases already
2009, the modes of acquisition shall
cultivated and planted to
be limited to voluntary offer to sell
crops in accordance with
and compulsory acquisition:
Section 6, Article XIII of the
 Provided, furthermore, That all Constitution;
previously acquired lands wherein
o all public agricultural lands
valuation is subject to challenge by
which are to be opened for
landowners shall be completed and
new development and
finally resolved pursuant to Section
resettlement:
17 of Republic Act No. 6657, as
amended: o all private agricultural lands of
landowners with aggregate
 Provided, finally, as mandated by the
landholdings above twenty-
Constitution, Republic Act No. 6657,
four (24) hectares up to fifty
as amended, and Republic Act No.
(50) hectares which have
3844, as amended, only farmers
already been subjected to a
(tenants or lessees) and regular
notice of coverage issued on
farmworkers actually tilling the lands,
or before December 10, 2008,
as certified under oath by the
Barangay Agrarian Reform Council  To implement principally the rights
(BARC) and attested under oath by of farmers and regular
the landowners, are the qualified farmworkers, who are landless,
beneficiaries.  To own directly or collectively the
lands they till, which shall be
15
distributed immediately upon the o the enhancement of agricultural
effectivity of this Act, with the productivity;
implementation to be completed
o and the availability of funds and
by June 30, 2012; and
resources to implement and support
(b) All remaining private agricultural lands the program:
of landowners with aggregate
landholdings in excess of twenty-four (24)  Provided, That the PARC shall design and
hectares, regardless as to whether these conduct seminars, symposia, information
have been subjected to notices of campaigns, and other similar programs for
coverage or not, with the implementation farmers who are not organized or not
to begin on July 1, 2012 and to be covered by any landholdings.
completed by June 30, 2013;  Completion by these farmers of the
aforementioned seminars, symposia, and
other similar programs shall be
Phase Three: encouraged in the implementation of this
Act particularly the provisions of this
 All other private agricultural lands
Section.
commencing with large landholdings and
proceeding to medium and small  Land acquisition and distribution shall be
landholdings under the following completed by June 30, 2014 on a
schedule: province-by- province basis.
(a) Lands of landowners with aggregate  In any case, the PARC or the PARC
landholdings above ten (10) hectares Executive Committee (PARC EXCOM),
up to twenty-four (24) hectares, insofar upon recommendation by the Provincial
as the excess hectarage above ten (10) Agrarian Reform Coordinating Committee
hectares is concerned, to begin on July (PARCCOM), may declare certain
1, 2012 and to be completed by June provinces as priority land reform areas, in
30, 2013; and which case the acquisition and
distribution of private agricultural lands
(b) Lands of landowners with aggregate
therein under advanced phases may be
landholdings from the retention limit up
implemented ahead of the above
to ten (10) hectares, to begin on July 1,
schedules on the condition that prior
2013 and to be completed by June 30,
phases in these provinces have been
2014; to implement principally the right
completed:
of farmers and regular farmworkers
who are landless, to own directly or  Provided, That notwithstanding the above
collectively the lands they till. schedules, phase three (b) shall not be
implemented in a particular province until
 The schedule of acquisition and
at least ninety percent (90%) of the
redistribution of all agricultural lands
provincial balance of that particular
covered by this program shall be made in
province as of January 1, 2009 under
accordance with the above order of
Phase One, Phase Two (a), Phase Two
priority.
(b),,and Phase Three (a), excluding lands
 Which shall be provided in the under the jurisdiction of the Department of
implementing rules to be prepared by the Environment and Natural Resources
PARC, taking into consideration the (DENR), have been successfully
following: completed.
o the landholdings wherein the farmers  The PARC shall establish guidelines to
are organized and understand the implement the above priorities and
meaning and obligations of farmland distribution scheme, including the
ownership; determination of who are qualified
o the distribution of lands to the tillers beneficiaries:
at the earliest practicable time;  Provided, That an owner-tiller may be a
beneficiary of the land he/she does not
16
own but is actually cultivating to the force majeure or any other
extent of the difference between the area fortuitous event provided that
of the land he/she owns and the award prior to such event, land was
ceiling of three (3) hectares: used for agricultural or other
economic purpose
 Provided, further, That collective
5) private lands voluntarily offered by
ownership by the farmer beneficiaries
owners for agrarian reform
shall be subject to Section 25 of Republic
6) lands foreclosed by government
Act No. 6657, as amended:
financial institutions
 Provided, furthermore, That rural women 7) lands acquired by Presidential
shall be given the opportunity to Commission on Good Government
participate in the development planning 8) all other lands owned by
and implementation of this Act: government devoted to or suitable
for agriculture
 Provided, finally, That in no case should
the agrarian reform beneficiaries' sex,
 Lands with an area of 24 hectares up
economic, religious, social, cultural and
to 50 hectares to be complete by
political attributes adversely affect the
June 30 2013
distribution of lands.
1) all alienable and disposable public
agricultural lands
2) all arable public agricultural lands
under agroforest, pasture and
agricultural leases already
cultivated and planted to crops in
Note: accordance in Sec 6 Art 13 of the
ACQUISITION AND DISTRIBUTION SCHEME Consti
FOR ALL REMAINING AGRICULTURAL LANDS 3) all public agricultural lands which
DURING 5 YEAR EXTENSION PERIOD UP TO are to be opened for new
JUNE 30 2014 development and resettlement
4) all private agricultural lands which
© ORDER OF PRIORITY: have already been subjected to a
notice of coverage issued on or
 Lands with area of more than 50 before Dec 10 2008
hectares to be complete by June 30 5) all remaining private agricultural
2012 lands regardless as to whether
1) those which already have been they have been subjected to
subjected to a Notice of Coverage notices of coverage
on or before Dec 10 2008  Lands with an area of more than 10
hectares up to 24 hectares to be
2) rice and corn lands
completed by June 30 2013
3) idle or abandoned lands
 Lands from retention limit up to 10
4) any agricultural land not
hectares to be complete by June 30
cultivated, tilled or developed to
2013
produce any crop not devoted to
any specific economic purpose
Farmer (tenants or lessees) and regular
continuously for a period of 3 years
farmworkers actually tilling the lands are
immediately prior to receipt of
considered to be qualified beneficiaries only
notice of acquisition by
if:
government
o certified under oath by the
o does not include land that has Barangay Agrarian Reform
permanently or regularly Council and
devoted to non agricultural o attested under oath by
purposes landowners
o does not include land that has Intended beneficiary shall state under oath
become unproductive due to before judge of city of municipality court that
17
he is willing to work on the land to make it conform with the limits set forth in
productive and to assume obligation of Section 3 of Article XII of the
paying amortization for compensation of land Constitution.
and land taxes thereon
(b) Contracts covering areas not in
excess of 1,000 hectares in the case
Idle or Abandoned Land: any agricultural land
of such corporations and
not cultivated, tilled or developed to produce
associations, and 500 hectares, in the
any crop nor devoted to any specific
case of such individuals, shall be
economic purpose continuously for a period
allowed to continue under their
of three years immediately prior to the
original terms and conditions but not
receipt of notice of acquisition of the
beyond August 29, 1992, or their valid
government.
termination, whichever comes
- It does not include the land that has sooner, after which, such agreements
been primarily or regularly devoted to shall continue only when confirmed
non-agricultural purposes. by the appropriate government
- It does not include land which has agency. Such contracts shall likewise
become unproductive by reason of continue even after the land has been
force majeure or any other fortuitous transferred to beneficiaries or
event awardees thereof, which transfer
shall be immediately commenced and
SECTION 8. MULTINATIONAL implemented and completed within
CORPORATIONS the period of three (3) years
mentioned in the first paragraph
All lands of the public domain: hereof.
a) leased, held or possessed by (c) In no case will such leases and
multinational corporations or other agreements now being
associations, implemented extend beyond August
b) and other lands owned by the 29, 1992, when all lands subject
government or by government-owned hereof shall have been distributed
or completely to qualified beneficiaries
c) controlled corporations or awardees.
d) associations, institutions or entities
devoted to existing and operational Such agreements can continue thereafter
agri-business or; only under a new contract between the
e) Agro-industrial enterprises operated government or qualified beneficiaries or
by multinational corporations and awardees, on the one hand, and said
associations, enterprises, on the other.
- Shall be programmed for acquisition
 Lands leased, held or possessed by
and distribution immediately upon the
multinational corporations, owned by
effectivity of this Act, with the
private individuals and private non-
implementation to be completed
governmental corporations, associations,
within three (3) years.
institutions and entities, citizens of the
Lands covered by the paragraph immediately Philippines:
preceding, under lease, management, grower  shall be subject to immediate
or service contracts, and the like, shall be compulsory acquisition and
disposed of as follows: distribution upon the expiration of
the applicable lease, management,
(a) Lease, management, grower or
grower or service contract in
service contracts covering such lands
effect as of August 29, 1987.
covering an aggregate area in excess
of 1,000 hectares, leased or held by  Otherwise, upon its valid
foreign individuals in excess of 500 termination, whichever comes
hectares are deemed amended to sooner, but not later than after ten
18
(10) years following the effectivity enjoyed by a domestic corporation,
of this Act. association, entity or individual.
 However during the said period of
effectivity, the government shall Note:
take steps to acquire these lands
AGRICULTURAL LANDS LEASED, HELD OR
for immediate distribution
POSSESSED BY MULTINATIONAL
thereafter.
CORPORATIONS ARE COVERED BY THE
 Lands shall be distributed directly to the CARL ACQUISITION AND DISTRIBUTION
individual worker-beneficiaries.  Land shall be distributed
 In case it is not economically feasible and directly to individual worker
sound to divide the land beneficiaries
- They shall form a workers'  If not economically feasible
cooperative or association which will and sound to divide the land,
deal with the corporation or business individual worker beneficiaries
association or any other proper party shall form a workers
for the purpose of entering into a cooperative or association
lease or growers agreement and for which will deal with the
all other legitimate purposes. corporation by way of lease
growers agreement and other
Until a new agreement is entered into by
legitimate purposes
and between the workers' cooperative or
association and the corporation or
business association or any other proper SECTION 9. ANCESTRAL LANDS.
party.  Ancestral lands of each indigenous
 Any agreement existing at the time this cultural community shall include
Act takes effect between the former and lands in the actual, continuous and
the previous landowner shall be respected open possession and occupation of
by both the workers' cooperative or the community and its members;
association and the corporation, business, provided that the Torrens Systems
association or such other proper party. shall be respected.
 In no case shall the implementation or  The right of these communities to

application of this Act justify or result in their ancestral lands shall be
the reduction of status or diminution of protected:
any benefits received or enjoyed by the  to ensure their economic, social
worker-beneficiaries, or in which they may and cultural well-being.
have a vested right, at the time this Act  In line with the principles of self-
becomes effective. determination and autonomy: the
 The provisions of Section 32 of this Act, systems of land ownership, land use,
with regard to production and income- and the modes of settling land
sharing shall apply to farms operated by disputes of all these communities
multinational corporations. must be recognized and respected.
 During the transition period, the new  The PARC may suspend the
owners shall be assisted in their efforts to implementation of this Act with
learn modern technology in production. respect to ancestral lands for the
 Enterprises which show a willingness and purpose of identifying and delineating
commitment and good-faith efforts to such lands.
impart voluntarily such advanced  Provided, that in the autonomous
technology will be given preferential regions, the respective legislatures
treatment where feasible. may enact their own laws on
 In no case shall a foreign corporation, ancestral domain subject to the
association, entity or individual enjoy any provisions of the Constitution and the
rights or privileges better than those
19
principles enunciated in this Act and
other national laws. (b) Private lands actually, directly and
Notes: exclusively used for prawn farms and
fishponds shall be exempt from the coverage
ANCESTRAL LANDS:
of this Act.
 Lands of the public domain that have
been in open, continuous, exclusive - Provided, That said prawn farms and
and notorious occupation and fishponds have not been distributed
cultivation by members of the and Certificate of Land Ownership
National Cultural Communities by Award (CLOA) issued to agrarian
themselves or through their reform beneficiaries under the
ancestors. Comprehensive Agrarian Reform
 Under a bona fide claim of acquisition Program.
of ownership according to their
In cases where the fishponds or prawn farms
customs and traditions for a period of
have been subjected to the Comprehensive
at least 30 years before the approval
Agrarian Reform Law by:
of P.D. 410.
 voluntary offer to sell; or
 Lands occupied, possessed and
 commercial farms deferment or
utilized by individuals, families and
 notices of compulsory acquisition
clans who are members of the
- a simple and absolute majority of the
indigenous cultural communities
actual regular workers or tenants must
indigenous peoples.
consent to the exemption within one (1)
ANCESTRAL LANDS ARE EXEMPTED FROM year from the effectivity of this Act.
THE COVERAGE OF AGRARIAN REFORM
PROGRAM: When the workers or tenants do not agree to
- The CARL of 1988 recognizes and this exemption: the fishponds or prawn farms
respect the system of land ownership, shall be distributed collectively to the
land use and the modes of settling worker-beneficiaries or tenants who shall
land disputes of all indigenous form a cooperative or association to manage
cultural communities or indigenous the same.
people. In cases where the fishponds or prawn farms
Principles of Self-determination and have not been subjected to the
Autonomy: In the autonomous regions, their Comprehensive Agrarian Reform Law: the
respective legislature may enact their own consent of the farm workers shall no longer
laws on ancestral domain subject to the be necessary, however, the provision of
Constitution. Section 32-A hereof on incentives shall
apply.
SECTION 10. EXEMPTIONS AND (b) Lands actually, directly and exclusively
EXCLUSIONS. used and found to be necessary for:
 national defense; school sites and
(a) Lands actually, directly and exclusively
campuses
used for:
 including experimental farm stations
1) parks
operated by public or private schools
2) wildlife
for educational purposes,
3) forest reserves
 seeds and seedling research; pilot
4) reforestation
production center
5) fish sanctuaries
 church sites; convents appurtenant
6) breeding grounds
 mosque sites; Islamic centers
7) watersheds
appurtenant
8) mangroves
 communal burial grounds and
- shall be exempt from the coverage of
cemeteries
this Act.
 penal colonies; penal farms actually
worked by the inmates
20
 government and private research disposable but not yet titled = reverted to
 quarantine centers and all lands with category of public forest
eighteen percent (18%) slope and  if land has been covered by an approved
over public land application or occupied
 except those already developed, shall openly, continuously, adversely and
be exempt from the coverage of this publicly for a period of not less than 30
Act. years as effectivity of Forestry Reform
Code  remains as alienable or
Note: disposable on condition that land is kept
LAND CLASSIFICATION IN THE TAX in vegetative state sufficient to prevent
DECLARATION IS NOT CONCLUSIVE erosion and adverse effects on lowlands
 tax declarations are not the sole and streams
basis of land classification
 even if tax declaration classifies land
as agricultural, the tax declaration is LANDS CLASSIFIED AS NON AGRICULTURAL
still refutable PRIOR TO EFFECTIVITY OF CARL ARE NOT
COVERED:
REPUBLIC V. CA 2000 a) Land already classified for
residential, commercial or industrial
 Landowners Green City Estate and
use by HLRUB prior to CARL are not
Development Court: 112 hectares
subject to agrarian Reform
in Rizal
o tax declaration: Agricultural b) Lands converted prior to June 15
 DAR subject the land to CARP 1988
 Landowners filed an application for c) DAR is bound by such conversions
exemption from agrarian reform
o Non agricultural because it is SCHOOL SITES AND CAMPUSES
within the residential and  Exempted if lands are
forest conservation zones of o actually, directly and exclusively
the town plan/zoning used and
ordinance o found necessary by the SCHOOL
 DAR denied application based on tax for school sites and campuses
declaration  DAR has no right to substitute
 HELD DAR was wrong in denying the judgment of discretion for the
application for exemption by mere fact determination of the necessity of the
that the tax declaration classified the school
land as agricultural
 Tax declarations are not the sole basis Central Mendanao University V. Department
for the classification of land of Agrarian Reform Adjudication Board
 Landowner:
 DAR AO asks for other documents to be
Central
submitted when applying for exemption
Mindanao
from CARP
University o
CMU –
LANDS WITH AT LEAST 18% SCOPE ARE
agricultural
EXEMPTED FROM COVERAGE OF AGRARIAN
institution
REFORM o 3000 hectares of land
 reason is to prevent adverse effects on  Livelihood program: leased 4 to 5
lowlands and streams due to soil hectares each to faculty and employees
erosions in groups of 5s
 considered permanent forests or o lowland rice project
forest reserves, regardless of condition of  Faculty and Employees filed a complaint
vegetative cover, occupancy or use of before DAR , Asking DAR to declare them
any kind = not alienable or disposable as tenants under CARL, so that they
 if land with at least 18% slope was could become agrarian reform
previously classified as alienable or beneficiaries. DAR did not agree.
21
 DAR then segregated 400 hectares of If the DAR determines that the purposes for
suitable, compact and contiguous which this deferment is granted no longer
portions of CMU land and subjected it to exist, such areas shall automatically be
agrarian reform coverage for distribution subject to redistribution.
to qualified beneficiaries on the ground
that it was not directly, actually and The provisions of Section 32 of the Act, with
exclusively used for school site. regard to production-and income-sharing,
 HELD: DAR WAS INCORRECT IN shall apply to commercial farms.”
SEGREGATING THE 400 HECTARES OF Note:
CMU LAND.
COMMERCIAL FARMS ARE LANDS DEVOTED
 CMU is a school established to promote
TO
agriculture and industry, the need for a
 Saltbeds
vast track of land for future expansion is
 Fruit farms
obvious.
 Orchards
The determination of when and what
 Vegetable and cut flower farms
lands are found to be necessary for use
 Cacao, coffee, and rubber plantations
the CMU, the school is in the best
position to resolve and answer the
IMPLEMENTATION OF AGRARIAN REFORM
question and pass upon the problem of
LAW DEFERRED ON COMMERCIAL FARMS -
its needs in relation to its policies.
Compulsory acquisition and distribution of
commercial farms has been deferred for 10
SECRETARY OF AGRARIAN reform has
years
jurisdiction to exempt a property from
 from effectivity of CARL ( June 1988) -
agrarian reform program.
for farms already existing when law
took effect
 from 1st year of commercial
SECTION 11. COMMERCIAL FARMING.
production and operation - for new
COMMERCIAL FARMS; which are private farms
agricultural lands devoted to saltbeds, fruit
farms, orchards, vegetable and cut-flower MODE OF ACQUISITION OF COMMERCIAL
farms, and cacao, coffee and rubber FARMS
plantations. 1. Voluntary offer to sell VOS
2. Compulsory acquisition CA
 shall be subject to immediate
3. Direct payment scheme DPS
compulsory acquisition; and
 distribution after ten (10) years from
MANNER OF DISTRIBUTION OF
the effectivity of this Act.
COMMERCIAL FARMS- individually or
In the case of new farms, the ten-year period collectively
shall begin from the first year of commercial © Individual Beneficiaries
production and operation, as determined by  3 hectares each or minimum of 1
the DAR. hectare each if land is not sufficient
to accommodate them
During the ten-year period, the Government
shall initiate steps necessary to acquire o Order of priority in distribution
these lands. i. Agricultural lessees and share
tenants
- upon payment of just compensation
ii. Regular farm workers
for the land and;
iii. Seasonal farm workers
- the improvements thereon,
iv. Other farm workers
- preferably in favor of organized
v. actual tillers or occupants of
cooperatives or associations which
public lands
shall thereafter manage the said
vi. collectives or cooperatives of
lands for the workers-beneficiaries.
above beneficiaries
22
vii. others directly working on the
land FREEDOM OF BENEFICIARIES TO CHOOSE
THE TYPE OF AGRIBUSINESS
© Collective Beneficiaries – if not
 Choose the type of agribusiness
economically feasible and sound to
venture arrangement that will
divide the land
maintain the economic viability of the
o Beneficiaries will be obliged for
farm
form a workers cooperative or
 To market their products or enter into
association
marketing arrangements
© Agrarian reform beneficiaries may  To avail of services or assistance of
recommend that infrastructure facilities individuals, associations or non-
and improvements necessary and governmental organizations in
beneficial to operation of the farm be negotiating for the most
subject to acquisition, to be determined advantageous agribusiness venture
by DAR. arrangement, enterprise development
o Includes buildings, roads, and capability building
machinery, receptacles,
instruments or implements TYPES OF AGRIBUSINESS VENTURE
permanently attached to the land ARRANGEMENTS WHICH COMMERCIAL
FARM BENEFICIARIES OR COOPERATIVES
QUALIFICATIONS OF COMMERCIAL FARM MAY ENTER INTO (DAR AO 09 1988)
BENEFICIARIES
© Joint Venture Arrangement
- Agrarian reform beneficiaries for
o Company is organized and co-owned by
acquired commercial farms
an investor and agrarian reform
1.
18 years old at time of filing of
beneficiaries through their cooperative
application as beneficiary
or association
2. Willingness, aptitude and ability
to cultivate and make land o Investor may provide management and
productive marketing skills, technology
3. Must have been employed in infrastructure and capital
commercial farm between June o Agrarian reform beneficiaries
15 1988 or upon expiration of contribute through labor, usufructuary,
deferment rights to land and capital infusion
4. Farm workers who have worked © Lease Arrangement
the longest on the land o Agrarian reform beneficiaries through
continuously will be given their cooperatives or association enter
priority into a contract of lease with the
WHO ARE DISQUALIFIED TO BECOME landowner or investor
COMMERCIAL FARM BENEFICIARIES
o Lessee controls farm operations within
a. Farm workers who have retired from an agreed period of time not exceeding
service, whether optional or 10 years, extendible by agreement
compulsory © Contract Growing/Growership
b. Farm workers who have resigned from Arrangement
their employment with the farm o Agrarian reform beneficiaries or
c. Farm workers who have been cooperative produce certain crops for
dismissed for cause an investor or agribusiness firm which
d. Farm workers, lessees, or tenants buys the produce at pre-arranged
who waive or refuse to be a terms
beneficiary © Management Contract
e. Farm workers, lessees or tenants who o Agrarian reform beneficiaries or
have committed a violation of cooperative or association hire the
agrarian reform laws and regulations services of landowner or investor
23
to manage and operate the farm in  25% of average normal harvest
exchange for fixed wages or after deducting amount used for
commission seeds and cost of harvest or
© Build- Operate- Transfer Scheme threshing.
o Project proponent undertakes the  If no normal harvests = estimated
financing and construction of a normal harvest during 3
given infrastructure facility and agricultural years immediately
operation and maintenance thereof preceding the date the leasehold
for an agreed period of time not was established
exceeding 25 years subject to © For sugar cane lands
extension  24% f average normal harvest
less value of cost of seeds/cane
RIGHT OF RETENTION OVER COMMERCIAL points, harvesting, loading,
FARMS hauling and or trucking fee and
 Owners of commercial farms, cost of processing
individual or corporate, are entitled to © For coconut lands
retention rights under Sec 6 of CARL  25% of average normal harvest
for a specific area for preceding 3
CHAPTER III calendar years less value of
Improvement of Tenurial and Labor Relations production costs
SECTION 12. Determination of Lease

Rentals. SECTION 13. PRODUCTION-SHARING
PLAN.
 In order to protect and improve the
tenurial and economic status of the Any enterprise adopting the scheme
farmers in tenanted lands under the provided for in:
retention limit and lands not yet - Section 32 hereof
acquired under this Act, the DAR is - operating under a production venture,
mandated to determine and fix lease, management contract
immediately the lease rentals thereof - other similar arrangement
in accordance with Section 34 of - any farm covered by Sections 8 and
Republic Act No. 3844, as amended: 11 hereof
 Provided, that the DAR shall
immediately and periodically review Hereby mandated to execute within ninety
and adjust the rental structure for (90) days from the effectivity of this Act, a
different crops, including rice and production-sharing plan, under guidelines
corn, or different regions in order to prescribed by the appropriate government
improve progressively the conditions agency.
of the farmer, tenant or lessee.  Nothing herein shall be construed to
Note: sanction the diminution of any benefits
 POWER OF DAR TO FIX LEASE such as salaries, bonuses, leaves and
RENTALS - Tenant may choose to working conditions granted to the
remain in portion retained by employee-beneficiaries under existing
landowner, in which case he will no laws, agreements, and voluntary practice
longer be a tenant but a lessee (Sec. by the enterprise.
6).  Nor shall the enterprise and its employee-
beneficiaries be prevented from entering
To protect economic status of farmer, DAR into any agreement with terms more
can determine and fix the lease rental: favorable to the latter.
© For lands devoted to rice and other
crops Note:
24
APPLICABILITY OF THE LAW - Obligations to PURPOSE OF SWORN STATEMENT - Help
a production sharing plan applies only to: DAR identify the lands and their owners for
 Farms operating under a production effective implementation of agrarian reform
venture, lease, management contract program
or other similar arrangement
 Farms leased or operated by
multinational corporations SECTION 15. REGISTRATION OF
 Commercial farms BENEFICIARIES.
o Those devoted to salt beds, fruit The DAR in coordination with the Barangay
farms, orchards, vegetable and Agrarian Reform Committee (BARC) as
cut flower farms, cacao, coffee or
organized in this Act, shall register all
rubber plantations
agricultural lessees, tenants and
farmworkers who are qualified to be
beneficiaries of the CARP.
CHAPTER IV
Registration  These potential beneficiaries with the
assistance of the BARC and the DAR
SECTION 14. REGISTRATION OF shall provide the following data:
LANDOWNERS.
(a) names and members of their
Within one hundred eighty (180) days from immediate farm household;
the effectivity of this Act, all persons, natural
or juridical, including government entities, (b) owners or administrators of the
that own or claim to own agricultural lands. lands they work on and the length of
tenurial relationship;
 Whether in their names or in the name
of others (c) location and area of the land they
 Except those who have already work;
registered pursuant to Executive
(d) crops planted; and
Order No. 229- who shall be entitled
to such incentives as may be (e) their share in the harvest or
provided for by the PARC. amount of rental paid or wages
received.
Shall file a sworn statement in the proper
assessor's office in the form to be prescribed A copy of the registry or list of all potential
by the DAR, stating the following information: CARP beneficiaries in the barangay shall be
posted in the barangay hall, school or other
(a) the description and area of the
public buildings in the barangay where it
property;
shall be open to inspection by the public at
(b) the average gross income from the all reasonable hours.
property for at least three (3) years;
PURPOSE OF REGISTRATION OF
(c) the names of all tenants and AGRICULTURAL LESSEES, TENANTS AND
farmworkers therein; FARM WORKERS: Develop a databank of
potential and qualified beneficiaries for
(d) the crops planted in the property effective implementation of the agrarian
and the area covered by each crop as reform program
of June 1, 1987;
(e) the terms of mortgages, lease, and

management contracts subsisting as
of June 1, 1987, and CHAPTER V
Land Acquisition
(f) the latest declared market value of
the land as determined by the city or SECTION 16. Procedure for Acquisition and
provincial assessor. Distribution of Private Lands.
25
For purposes of acquisition of private lands, case of rejection or no response from
the following procedures shall be followed: the landowner, upon the deposit with
an accessible bank designated by the
(a) After having identified the land, the DAR of the compensation in cash or in
landowners and the beneficiaries, the LBP bonds in accordance with this
DAR shall send its notice to acquire the Act.
land to the owners thereof, by personal
delivery or registered mail, and; - The DAR shall take immediate
- post the same in a conspicuous possession of the land and;
place in the municipal building and - Shall request the proper
barangay hall of the place where the Register of Deeds to issue a
property is located. Transfer Certificate of Title
- Said notice shall contain the offer of (TCT) in the name of the
the DAR to pay a corresponding Republic of the Philippines.
value in accordance with the - The DAR shall thereafter
valuation set forth in Sections 17, proceed with the
18, and other pertinent provisions redistribution of the land to
hereof. the qualified beneficiaries.
- Any party who disagrees with the
(b) Within thirty (30) days from the date of decision may bring the matter to the
receipt of written notice by personal court of proper jurisdiction for final
delivery or registered mail, the landowner, determination of just compensation.
his administrator or representative shall
inform the DAR of his acceptance or COMPULSORY ACQUISITION OF
rejection of the offer. AGRICULTURAL LANDS PROCESS
 Identification by DAR of land,
(c) If the landowner accepts the offer of
landowner and beneficiary
the DAR, the Land Bank of the Philippines
 Notice by DAR to landowner about
(LBP) shall pay the landowner the compulsory acquisition and price
purchase price of the land within thirty offer by
(30) days after he executes and; o personal notice or by registered
- delivers a deed of transfer in mail and
favor of the government and o posting of notice in a
surrenders the Certificate of conspicuous place in barangay
Title and other muniments of hall and municipal hall where
title. land is located
 Reply by landowner about his
(c) In case of rejection or failure to reply, acceptance or rejection of offered
the DAR shall conduct summary price
administrative proceedings to o if landowner accepts – Land
determine the compensation for the Bank will pay the landowner
land requiring the landowner, the LBP within 30 days from execution
and other interested parties to submit and delivery of Deed of Transfer
evidence as to the just compensation o if landowner rejects offer – DAR
for the land, within fifteen (15) days will determine just
from the receipt of the notice. compensation thru summary
proceedings
- After the expiration of the
o if landowner disagrees with DAR
above period, the matter is
decision – regular courts of
deemed submitted for decision. justice for final determination of
- The DAR shall decide the case just compensation
within thirty (30) days after it is  Taking of immediate possession of
submitted for decision. land by DAR
o if landowner receives
(e) Upon receipt by the landowner of
corresponding payment or
the corresponding payment or, in
26
o landowner does not respond to compensation to be paid in cash and Land
notice of acquisition Bank bonds, not trust accounts.
 Request by DAR to Register of Deeds CHAPTER VI
to issue Transfer Certificate of Title Compensation
to Republic of Philippines
 Distribution of land to qualified SECTION 17. DETERMINATION OF JUST
beneficiaries COMPENSATION.
In determining just compensation:

TWO NOTICES TO THE LANDOWNER ARE
REQUIRED FOR VALIDITY OF 1. the cost of acquisition of the land
IMPLEMENTATION 2. the value of the standing crop
 Notice of Coverage 3. the current value of like properties
o pursuant to DAR AO 12 1989
o in compliance with administrative 4. nature of the land
due process 5. actual use and
 Notice of Acquisition 6. income of the land
o pursuant to Sec 16 of CARL 7. the sworn valuation by the owner
8. the tax declarations
Importance of First Notice: Designated to
comply with the requirements of the 9. the assessment made by government
Administrative Due Process. assessors
- Retention Limits = Exercise of Police 10. and seventy percent (70%) of the
Power = Regulation of Property zonal valuation of the Bureau of
Internal Revenue (BIR)
11. The social and economic benefits
contributed by the farmers and the
LAND ACQUISITION PROCEDURE SHOULD farmworkers and by the Government
BE STRICTLY CONSTRUED to the property.
 Reason: Land acquisition under
12. The Nonpayment of taxes or loans
agrarian reform law is an
secured from any government
extraordinary method of
financing institution on the said land
expropriation
shall be considered as additional
 Failure of DAR or any of its agencies
factors to determine its valuation.
to comply with proper procedure for
expropriation is a violation of
 Translated into a basic formula by the
constitutional due process and in
DAR shall be considered = subject to the
effect arbitrary, capricious,
final decision of the proper court.
whimsical and tainted with grave
abuse of discretion. ex. No notice of Note:
coverage issued CONCEPT OF JUST COMPENSATION
 Defined as the full and fair equivalent
WHEN TITLE OR OWNERSHIP OF THE LAND of the property taken form its owner
IS TRANSFERRED TO THE STATE by the expropriator
 Only upon full payment of just
 Measure is not takers gain, but the
compensation
owners loss
 Title and ownership remains with
o Equivalent to be rendered for the
landowner until final determination of
just compensation and fully payment property to be taken shall be
 Mere fact that DAR deposited offered real, substantial, full and ample.
price with Land Bank does not  Correct determination of amount to be
warrant cancellation of owner’s title paid to the landowner and prompt
payment
OPENING OF TRUST ACCOUNT DOES NOT o payment within a reasonable time
CONSTITUTE PAYMENT - Law requires just from taking
27
o immediate deposit and release of General Rule: Basis for just
provisional compensation compensation is the value of property at
o full payment of finally adjudged just time it was taken from owner and
compensation appropriated to the government
o without prompt payment, Time of Taking – event when the
compensation is not just because landowner was deprived of the use and
landowner is made to suffer benefit of his property.
consequence of being immediately  if government takes possession of
deprived on land while being made land before institution of
to wait before receiving amount expropriation proceedings, value
necessary to cope with his loss shall be fixed as of time of taking
 Prompt Payment – payment within a of possession
reasonable time from its taking; it o not the time of filing of
contemplate the immediate deposit the complaint o Time of
and release of the provisional taking
compensation.
o stage when title is
No prompt payment when: transferred to
a. reimbursement is government or
conditioned on Land Bank’s beneficiaries AND
approval and release of the  the time when agricultural land
amount is made to depend voluntarily offered by landowner was
upon compliance with approved by PARC for agrarian reform
documentary requirements coverage through stock distribution
b. partial payment of just scheme
compensation
- However, if there is undue delay in
FACTORS USED IN VALUATION OF LANDS payment = value of property should
1. Capital Net Income CNI be determined at time of full payment
of just compensation
o based on land use and
productivity Lubrica v. Land Bank
2. Comparable Sales CS  Lubrica was deprived of property in 1972
o 70% of BIR zonal value but as of 2006, Lubrica was still not
justly compensated
3. Market Value MV
 inequitable to determine just
o based on tax declaration compensation based on time of taking
FORMULAS: considering the failure to determine just
compensation for a considerable length
When all factors CNI x 0.6 + CS x 0.30
of time
are present + MV x 0.10 = Land  just compensation should be full and fail
Value equivalent of the property taken from its
When CS factor is CS x 0.90 + MV x owner by the expropriator, the
not present 0.10 = Land Value equivalent being real, substantial, full
When CNI factor is CNI x 0.90 + MV x and ample.
not present 0.10 = Land Value
When CS and CNI MV x 2 = Land Value PROCEDURE FOR DETERMINATION OF JUST
factors are not COMPENSATION
present
1) Land Bank determines value of lands
2) DAR makes an offer to landowner
based on the Land Bank
RECKONING OF VALUATION determination
3) If landowner rejects
28
o DAR conducts summary the Special Agrarian Court for Final
administrative proceedings to determine Determination.
compensation for land by requiring o The party who disagrees with
landowner, Land Bank and other interested the decision of the
parties to submit evidence for just Board/Adjudicator may contest
compensation the same by filing an original
4) Party who disagrees with decision of action with the Special
adjudicator may bring the matter to Agrarian Court (SAC) having
RTC designated as Special Agrarian jurisdiction over the subject
Court for final determination of just property within fifteen (15) days
compensation from his receipt of the
Board/Adjudicator’s decision.
ROLE OF DARAB o Immediately upon filing with the SAC,
the party shall file a Notice of Filing
 DARAB or Provincial Agrarian Reform of Original Action with the
Adjudicators PARAD can conduct Board/Adjudicator, together with a
summary administrative proceeding for certified true copy of the petition filed
preliminary determination of just with the SAC.
compensation in order to determine
- Failure to file a Notice of
whether land valuation computations of
Filing of Original Action or
Land Bank are in accordance with rules or
to submit a certified true
administrative orders.
copy of the petition shall
 Preliminary proceedings of land valuation render the decision of the
for purpose of determination of just Board/Adjudicator final and
compensation for acquisition shall be executory.
conducted by
o Upon receipt of the Notice of Filing of
 PARAD – initial land valuation Original Action or certified true copy
of Land Bank is less than 10M of the petition filed with the SAC, no
o Regional Agrarian Reform writ of execution shall be issued by
Adjudicators – initial land the Board/Adjudicator.
valuation of Land Bank is 50M
 DARAB – initial land valuation COURTS CANNOT DISREGARD FORMULA -
of Land Bank is above 50M Factors for determination of just
 On event of non-availability, inhibition, or compensation, which the DAR converted into
disqualification of designated PARAD  a formula are mandatory and not mere
RARAD concerned may conduct guidelines which the RTC may disregard
preliminary proceedings of land valuation
notwithstanding that jurisdictional amount CONSENT OF BENEFICIARY NOT
is less than 10M NECESSARY IN DETERMINING JUST
 On account of non-availability, inhibition COMPENSATION OF LAND OWNER
or disqualification of the RARAD  Under Sec 18 of CARL, the only
concerned, DARAB may conduct the parties in valuation of land o
preliminary proceedings of land valuation land owner
or designate the same to an Adjusticator o DAR
form among the PARADs in the region. o Land Bank
VALUATION SET BY DAR NOT CONCLUSIVE  law does not mention participation of
 Valuation set by Land Bank is not farmer beneficiary
conclusive = Landowner can contest in  Land Bank cannot refuse to pay valuation
proper court, the RTC designated as set by PARAD simply because consent
Special Agrarian Court of farmer beneficiary was not obtained
 Sec 6 Rule 19 of 2006 DARAB Rules of in fixing just compensation
Procedure. Filing of Original Action with
29
province or region where the land is
SECTION 18: VALUATION AND MODE OF
location.
ACQUISITION
 LBP shall compensate the landowner  Acquisition of shares of stock of
= amounts agreed upon by GOCC/stocks owned by the
LANDOWNER, DAR and LBP. government in Private Corp.
 Accordance:  Substitution for Surety or Bail Bonds
1. Criteria provided in Section 17  Security for loans with any
2. Other pertinent provisions government financial institution –
3. Those determined by the court proceeds of the load should be
as to just compensation of the invested in an economic enterprise
land (small-medium scale industry)
 Payment for various taxes and fees to
MODE OF COMPENSATION: government
 Payment for tuition fees of immediate
1. Cash and Financial Instrument of the
family (Parent, spouse, child or
Government:
sibling) on Government owned
LANDS COMPENSATION universities, college, trade school and
Above 50 hectares 25% cash & 75% other institutions.
(excess hectarage) governments finacial  Payment of fees of the immediate
instrument family of the original bond holder in
24 hecatares-50 30% cash & 70% government hospitals.
hectares government financial  ‘Other uses as the PARC may from
instrument time to time allow.
24 hectares and 35% cash & 65% NOTE:
below governments finacial  The law says that the just
instrument compensation shall be paid partly in
cash and the remainder by means of
bonds, government financial
instruments, share-of-stock in GOCC,
tax credit or land bank bonds.
2. Shares of Stock of the ff:  The smaller the land, the bigger the
 Government owned and payments of money.
Controlled Corporations’ o Rationale: The small owner
 Preferred shares of the Land will be needing it more than
Bank the big landowners.
 Physical asset and other  Criminal Violation: CARL of 1988 –
qualified investment prohibits responsible government
3. Tax Credit which can be used officers from unduly delaying,
against tax liabilities refusing or failing to pay the
landowner his just compensation.
4. Land bank bonds which shall mature
ever year until the 10th year.
SECTION 19: INCENTIVES FOR VOLUNTARY
 Transferability and negotiability: Such
OFFERS FOR SALE
bonds may be used by the landowners
succesors in interest/his assignee; up  Landowners other than banks and
to the amount of the ff: other finacial institutions who
voluntarily offer their lands for sale
 Amount of their face value
shall be titled to:
 Acquisition of land or other real
-Additional 5% cash payment.
property -under Asset Privatization;
other foreclosed by government Requirements: Attach the following to
financial institutions in the same their WRITTEN OFFER:
1) Title or proof of ownership
30
2) Tax Declaration SECTION 21 – PAYMENT OF COMPENSATION
3) Approved survey plan BY BENEFICIARIES UNDER VOLUNTARY
LAND TRANSFER
Note:
 Landowner failed to submit the doc.  Direct Payment in cash or in kind
Req. = Land will be subject to may be made by the farmer-
COMPULSARY ACQUISITION beneficiary to the the landowner
under terms to be MUTUALLY
AGREED upon by both parties.
SECTION 20: VOLUNTARY LAND TRANSFER
 Which shall be binding
- Landowners of agricultural lands
upon them, upon
subject to acquisition under this act
registration with and
may enter into voluntary arrangement
approval by the DAR.
for direct transfer of their lands to
qualified beneficiaries subject to the  Said Approval shall be
ff. guidelines: given. Unless NOTICE OF
DISAPPROVAL is received
1) All notices for voluntary land by the farmer-beneficiary
transfer must be submitted to the within 30 days from the
DAR within the 1st year of the date of registration.
implementation of CARP.
 If they cannot agree on the price
*Note: Negotiation between the of land, the procedure for
landowner and qualified compulsary acquisition as
beneficiaries which REMAIN provided in Section 16 shall apply.
UNRESOLVED after 1 year shall not  The LBP shall extend financing to
be recognized and such land shall the beneficiaries for purposes of
be acquired by the government and acquiring the land.
transferred persuant to this act.
2) The terms and conditions of such CHAPTER VII

transfer shall not be less favorable LAND REDISTRIBUTION
top the transferee than those of
government’s standing offer to SECTION 22. QUALIFIED BENEFICIARIES
purchase from the landowner and
to resell to the beneficiaries, if  The lands covered by the CARP shall
such offers have been made and be distributed as much as possible to
are fully known to both parties. landless resident of the same
barangay or landless residents of
3) The voluntary agreement shall municipality in ff. Order of priority:
include sanctions for non-
1) Agricultural Lessees and
compliance by either party and
share tenants
shall be duly recorded and its
implementation monitored by the 2) Regular farmworkers
DAR. 3) Seasonal farmworkers
4) Other Farmworkers
Note:
 Sec. 7 of the CARL of 1988 as 5) Actual Tillers or occupants of
amended by R.A. 9700 – allowed public lands
voluntary transfer up to June 30, 2009 6) Collectives or cooperativesof
only. the above beneficiaries
 After June 30, 2009, the modes of 7) Other directly working on the
acquisition are limited to voluntary land.
offer to sell and compulsary  The children of landowners who are
acquisition. qualified under Section 6 of this Act
31
shall be given preference in the SECTION 22-A ORDER OF PRIORITY
distribution of land of their parents.
 Provided further that, actual tenant-  A landholding of a landowner shall be
tillers in the landholdings shall not be distributed first to qualified
ejected or remove therefrom. beneficiaries (under Section 22) up to
a maximum of 3 hectares each.
 Benefaiciaries under PD27 who have
culpably sold, disposed or abandoned  Only when this beneficiaries have all
their lands = disqualified to become received 3 hectares each, shall the
beneficiaries under this program. remaining portion of the landholding if
any, be distributed to other
beneficiaries.
 BASIC QUALIFICATION OF THE
BENEFECIARIES ORDER OF DISTRIBUTION
1. Willingness, Aptitude and ability to
1) Children of the Landowner
cultivate
2. Make the land as prouctive as possible. 2) Agricultural Lesse and
share tenants
QUALIFICATION OF AGRARIAN REFORM 3) Regular Farmworkers
BENEFICIARY 4) Seasonal Farmworkers
 Any person who owns less than 3
5) Actual Tillers or occupants
hectares of agricultural land.
of public lands
 A filipino citizen
 A resident of the barangay; or the 6) Collectives and
municipality (if there is no sufficient cooperatives of the above
beneficiaries in barangay) beneficiaries
 At least 15 years of age @ the time of: 7) Other directly working on
Identification, screening and selection of the land
beneficiaries.
 Willing, able and equipped with the SECTION 23 – DISTRIBUTION LIMIT
aptitude to cultivate and make the land  No qualified beneficiaries may own
productive more than 3 hectares of Agricultural
Land.
 If a tenant already owns 2 hectares

of agri land = he can still be
awarded 1 hectare.
 A covered lanholding shall be
distributed first to the ff:
SPECIAL QUALIFICATION 1. Agricultural Lesse and share
 Farmworkers in Commercial farms who tenants
were employed as of JUNE 15, 1988 in 2. Regular Farmworkers
the landholding covered by the CARL of
1988.  If the landholding is more than
enough to accommodate the 3
 Who are not qualified to become hectare limit, the excess shall be
beneficiary distributed to the following:
 Farmworkers holding 1. Seasonal Farmworkers
managerial/supervisory position as of 2. Actual Tillers or occupants of
June 15, 1988. public lands
Exception: Those who were promoted 3. Collectives and cooperatives
after they were identified, screened of the above beneficiaries
and selected remain as agrarian reform 4. Other directly working on the
benefeciaries. land
32
SCENARIO DISTRIBUTION
 Excess areas after the allocation
If the land is The landholding shall
mentioned shall be awarded to collectives
insufficient to meet be divided EQUALLY
or cooperatives of the above
the 3 hectare award among them
beneficiaries.
ceiling
However, The tenants in these The area of Shall be awarded
excess shall be given a particular 1000 sq.m of the
reasonable time to harvest the landholding is land, taking into
produce of their crop, subject to inadequate to account the length
the rules and standing of the crop provide each with or service as the
land for more than case may be.
 FACTORS IN DETERMINING THE SIZE 1000 sq.m
OF LAND TO BE AWARDED: The area is less than Shall then be
1. Type of Crop 1000 sq.m. be left in distributed equally
2. Type of Soil the course of the among these
award beneficiaries who
3. Weather patterns
had received 1000
4. Other pertinent factors critical for sq.m.
the success of the beneficiaries. -after:
-the Land Bank of the Philippines (LBP)
SECTION 24 – AWARD TO BENEFICIARIES
has certified that the necessary
deposit in the name of the landowner
 The rights and responsibilities of the
constituting full payment in cash or in
beneficiaries shall comence:
bond.4
1. from the receipt of a duly
(with due notice to the landowner and
registered emancipation
the registration of the certificate of
patent or certificate of land
land ownership award issued to the
ownership award
beneficiaries, and to cancel previous
2. Their actual possesion of the titles pertaining thereto.)
awarded land
Identified and qualified agrarian reform
 Shall award shall be completed in beneficiaries, based on Section 22 of
NOT MORE THAN 180 days from the Republic Act No. 6657, as amended, shall
date of registration of the title in the have usufructuary rights over the awarded
name of the REPUBLIC OF THE land as soon as the DAR takes possession of
PHILIPPINES such land.
-Provided that the: (such right shall not be diminished even
1. Emancipation Patents pending the awarding of the emancipation
patent or the certificate of land ownership
2. Certificate of Land Ownership award
award.)
3. Other titles issaued under any
usufructuary rights: to enjoy the property of
Agrarian Reform Program
another with obligation of preserving its form
-shall be indefeasible and imprescriptible and substance.
after 1 year from its registration with the
All cases involving the cancellation of
Registry of Deeds. (Subject to the
registered emancipation patents, certificates
conditions, limitations and qualification of
of land ownership award, and other titles
this act/Property Registration Decree and
issued under any agrarian reform program
Other pertinent laws)
are within the exclusive and original
 It is miniserial duty of the Register of Deeds: jurisdiction of the Secretary of the DAR. (as
to register the title of the land in the name of amended by Section 9, RA 9700)
the Republic of the Philippines.
33
Notes: 5) Sale, transfer or conveyance
of the right to use the land
 Compulsory Acquisition does not
mean automatic transfer of ownership of 6) Illegal conversion of the land.
land.
o Title and ownership of land can be  The RIGHTS AND
transferred to the beneficiaries only: RESPONSIBILITIES OF THE
UPON FULL PAYMENT OF JUST BENEFICIARIES BEGIN FROM:
COMPENSATION TO THE LANDOWNER. a. Their receipt of a duly
o Certificate of Land Ownership will be registered Certificate of
issued: Upon full payment of Land Ownership Award
amortization required. b. Their actual physical
o Certificate of Title: become the basis possession of the awarded
for the issuance in his name of an land
original or transfer certificate of title.  Comprehensive Agrarian Reform
 Certificate of Land Ownership Award & Law of 1988: Prohibits a
other Titles under Agrarian Reform beneficiary to sell, transfer of
Program become Indefeasible and convey his right to use or any
Imprescriptible: after 1 year from its other usufructuary right over the
Registration in the Register of Deeds. land he acquired.
o Indefeasibility -
That which cannot be defeated, revo  OBLIGATIONS OF AGRARIAN
ked, or made void. REFORM BENEFICIARIES:
o Imprescriptible -that cannot rightfully 1. Exercise due diligence in

be taken away, lost, or revoked; the use, cultivation and
inviolable maintenance of the land,
including improvement
 The following are issued merely as
thereon,
preparatory steps for the eventual
issuance of a Certificate of Title: 2. Pay the landbank 30
AMORTIZATIONS with 6%
1. Certificates of Land Transfer
INTEREST PER ANNUM
2. In turn: Certificates of Land
3. Pay the real property
Ownership Awards
taxes due on their
3. Emancipation Patents awarded loans.
 Cancellation of Certificate of Land
Ownership Award: within the
exclusive and original jurisdiction START OF AMORTIZATION: 1 year from the
of the Secretary of the Department Date of Registration of the Certificate of
of Agrarian Reform Land Ownership Award.
 IF ACTUAL OCCUPANCY OF THE

 Grounds for Cancellation of
LAND TAKES PLACE after the
Certificates of Land Ownership
registration of the Certificate of Land
Award:
Ownership Award: 1 year period shall
1) Abandonment of the Land be reckoned (establish by counting or
2) Neglect or misuse of Land calculation) from Actual Occupation
of the Land by the beneficiary.
3) Failure to pay three annual
amortizations
SECTION 25- AWARD CEILINGS FOR
4) Misuse or diversion of financial BENEFICIARIES
and support service
34
 Beneficiaries shall be awarded an 2. farmers cooperative
area not exceeding three (3) hectares 3. some other form of collective
(which may cover a contiguous tract organization
of land or several parcels of land
4. for the issuance of collective
cumulated up to the prescribed award
ownership titles
limits)
Provided, That the total area that may
 Determination of the size of the land be awarded shall not exceed the total
for distribution shall consider: number of co-owners or members of
a. crop type the cooperative or collective
b. soil type organization multiplied by the award
c. weather patterns limit above prescribed, except in
d. other pertinent variables meritorious cases as determined by
e. factors which are deemed critical the PARC.
for the success of the
beneficiaries.  The conditions for the issuance of
collective titles are as follows:
 LANDLESS BENEFICIARY: one who (a) The current farm management
owns less than three (3) hectares of system of the land covered by
agricultural land. CARP will not be appropriate for
individual farming of farm
 The DAR shall encourage the agrarian parcels;
reform beneficiaries:
(b) The farm labor system is
1. to form or join farmers' specialized, where the
cooperatives for purposes of farmworkers are organized by
affiliating with existing functions and not by specific
cooperative banks in their parcels such as spraying,
respective provinces or weeding, packing and other
localities, similar functions;
2. as well as forming blocs of
(c) The potential beneficiaries are
agrarian reform beneficiaries,
currently not farming individual
corporations, and partnerships
parcels but collectively work on
3. joining other farmers' large contiguous areas; and
collective organizations,
including irrigators' (d) The farm consists of multiple
associations crops being farmed in an
integrated manner or includes
Provided, That the agrarian reform
non-crop production areas that
beneficiaries shall be assured of
are necessary for the viability of
corresponding shares in the
farm operations, such as packing
corporation, seats in the board of
plants, storage areas, dikes, and
directors, and an equitable share in
other similar facilities that
the profit.
cannot be subdivided or assigned
to individual farmers.
 In general, the land awarded to a
farmer- beneficiary should be in the  For idle and abandoned lands or
form of an individual title, covering underdeveloped agricultural lands to
one (1) contiguous tract or several be covered by CARP collective
parcels of land cumulated up to a ownership shall be allowed only if:
maximum of three (3) hectares. 1. the beneficiaries opt for it
2. there is a clear development
 The beneficiaries may opt for plan that would require
collective ownership such as: collective farming
1. co-workers
35
3. or integrated farm operations  CONDITIONS FOR ISSUANCE OF
exhibiting the conditions COLLECTIVE TITLES:
described above.
1. The farm management system of
Otherwise, the land awarded to a the land covered is not
farmer-beneficiary should be in the appropriate for individual
form of an individual title, covering farming
one (1) contiguous tract or several
2. The farm labor system is
parcels of land cumulated up to a
specialized.
maximum of three (3) hectares.
3. The beneficiaries are currently
not farming individual parcels
but collectively work on large
contiguous areas.
In case of collective ownership: title to the
4. The farm consist of multiple
property shall be issued in the name of the
crops being farmed in an
co-owners or the cooperative or collective
integrated manner or includes
organization as the case may be.
non-crop production areas that
If the certificates of land ownership award are necessary for the viability of
are given to cooperatives/named on the farm operations.
collective organization: the names of the
 The TITLE OF THE LAND AWARDED
beneficiaries must also be listed in the same
under Agrarian Reform must indicate
certificate of land ownership award.
that it is an Emancipation Patent or
Certificate of Land Ownership Award.
With regard to existing collective certificates
of land ownership award:
SECTION 26- PAYMENT BY BENEFICIARIES
1. The DAR should immediately
undertake the parcelization of said  Lands awarded pursuant to this Act
certificates of land ownership award, shall be paid for by the beneficiaries
particularly those that do not exhibit to the LBP in thirty (30) annual
the conditions for collective amortizations at six percent (6%)
ownership outlined above. interest per annum.
2. The DAR shall conduct a review and
 The annual amortization shall start
redocumentation of all the collective
one (1) year from the date of the
certificates of land ownership award.
certificate of land ownership award
3. The DAR shall prepare a prioritized registration.
list of certificates of land ownership  if the occupancy took place
award to be parcelized. after the certificate of land
The parcellation shall commence ownership award registration:
immediately upon approval of this Act and the amortization shall start one
shall not exceed a period of three (3) years. (1) year from actual
Only those existing certificates of land occupancy.
ownership award that are collectively farmed
or are operated in an integrated manner shall  The payments for the first three (3)
remain as collective. years after the award shall be at
reduced amounts as established by
Notes: the PARC:
 General Rule: The Land should be  Provided, That the first five (5)
awarded to the individual farmer- annual payments may not be
beneficiary and covered by individual more than five percent (5%) of
title. the value of the annual gross
36
production as established by the established by the Department of
DAR. Agrarian Reform.
 Should the scheduled annual

payments after the fifth (5th) year SECTION 27-TRANSFERABILITY OF
exceed ten percent (10%) of the AWARDED LANDS
annual gross production and the
FOR A PERIOD OF TEN (10) YEARS: Lands
failure to produce accordingly is not
acquired by beneficiaries under this Act or
due to the beneficiary's fault:
other agrarian reform laws shall not be sold,
 the LBP shall reduce the
transferred or conveyed EXCEPT:
interest rate and/or reduce the
principal obligation to make the 1) through hereditary succession,
repayment affordable. 2) to the government
3) to the LBP
 The LBP shall have a lien by way of 4) to other qualified beneficiaries
mortgage on the land awarded to the through the DAR.
beneficiary
 this mortgage may be - Provided, however, That the children
foreclosed by the LBP for non- or the spouse of the transferor shall
payment of an aggregate of have a right to repurchase the land
three (3) annual amortizations. from the government or LBP within a
period of two (2) years.
 The LBP shall advise the DAR of such  Due notice of the availability of the land
proceedings and the latter shall shall be given by the LBP to the BARC of
subsequently award the forfeited the barangay where the land is situated.
landholding to other qualified
 The PARCCOM, as herein provided, shall,
beneficiaries.
in turn, be given due notice thereof by the
 A beneficiary whose land, as
BARC.
provided herein, has been
foreclosed shall thereafter be The title of the land awarded under the
permanently disqualified from agrarian reform must indicate that:
becoming a beneficiary under this
1. it is an emancipation patent or a
Act.
certificate of land ownership award;
Notes: and
2. the subsequent transfer title must
 COST OF THE AWARDED LAND: also indicate that it is an
 Payable to the Land Bank (by the emancipation patent or a certificate
beneficiaries) of land ownership award
 Payable in 30 Annual Amortization If the land has not yet been fully paid by the
with 6% per annum. beneficiary: the rights to the land may be
 PAYMENT STARTS ONE YEAR FROM: transferred or conveyed:
 The date of registration of the 1. with prior approval of the DAR

Certificate of Land Ownership 2. to any heir of the beneficiary or to any
Award other beneficiary
3. as a condition for such transfer or
 Date of actual occupancy, if the
conveyance, shall cultivate the
occupancy took place after the
landhimself/herself.
registration of the Certificate of
Land Ownership Award. Failing compliance herewith, the land shall
 MAXIMUM AMORTIZATION: 5% of the be transferred to the LBP which shall give
annual gross production as due notice of the availability of the land in
the manner specified in the immediately
preceding paragraph.
37
- In the event of such transfer to the SECTION 29. FARMS OWNED OR OPERATED
LBP, the latter shall compensate the BY CORPORATIONS OR OTHER BUSINESS
beneficiary in one lump sum for the ASSOCIATIONS.
amounts the latter has already paid,
together with the value of In the case of farms owned or operated by
improvements he/she has made on corporations or other business associations,
the land. the following rules shall be observed by the
PARC:
 In general: Lands shall be distributed

Note: directly to the individual worker-
beneficiaries.
Hereditary Succession: succession by
intestate succession or by will of compulsory  In case it is not economically feasible
heirs. and sound to divide the land: then it
shall be owned collectively by the
 Prohibition against transfer to other workers' cooperative or association
person other than the beneficiaries : which will deal with the corporation
stems from the policy of the or business association.
government to develop generations of
- Until a new agreement is entered into by
farmers to attain its goal to have an
and between the workers' cooperative or
adequate and sustained agricultural
association and the corporation or
production with certitude.
business association.
If the beneficiary sells or transfers - Any agreement existing at the time this
ownership to the above exceptions: the Act takes effect between the former and
children of the spouse of the transferor can the previous landowner shall be
repurchase the land within 2 years from the respected by both the workers'
date of transfer. cooperative or association and the
Beneficiary can lease the land to another corporation or business association.
person: it should be also for agricultural
purposes Modes of Distribution of Corporate Farms:
 if the lease is for non-agricultural 1. Direct – general rule is that lands
purpose = Approval of the DAR is a shall be distributed directly to the
must. individual worker-beneficiaries.
2. Indirect - In case it is not
Beneficiary can lease the land to former economically feasible and sound to
landowner: should obtain the approval of divide the land
DAR through Provincial Agrarian Reform
Coordinating Committee.
Hacienda Luisita Inc. v. Presidential Agrarian
SECTION 28. STANDING CROPS AT THE Reform Council
TIME OF ACQUISITION
 Individual farmer will often face greater
© The landowner shall retain his share
disadvantages and difficulties than those
of any standing crops unharvested at
who exercise ownership in a collective
the time the DAR shall take
manner through cooperative or
possession of the land under Section
corporation.
16 of this Act.
a. left with his own devices when
© They shall be given a reasonable time faced with failing crops
to harvest the same. b. compelled to own usurious loan
(to obtain costly fertilizer and
CHAPTER VIII farming equipment’s)
Corporate Farms  A cooperative or a corporation stands in
a better position to secure funding and
38
competently maintain the agri-business o or qualified beneficiaries
than the individual farmer. - Under such terms and conditions,
 Government must be flexible and consistent with this Act, as they may
creative in its mode of implementation to agree upon.
better its chances of success.
- Subject to confirmation by the DAR.
- Collective ownership through
juridical persons composed of
 Upon certification by the DAR,
farmers.
corporations owning agricultural lands
may give their qualified beneficiaries the
SECTION 30. Homelots and Farmlots for
right to purchase such proportion of the
Members of Cooperatives.
capital stock of the corporation that the
The individual members of the cooperatives agricultural land, actually devoted to
or corporations mentioned in the preceding agricultural activities.
section shall be provided with homelots and - It should bears in relation to the
small farmlots for their family use. company's total assets, under such
- To be taken from the land owned by terms and conditions as may be
the cooperative or corporation. agreed upon by them.
Note:  In no case shall the compensation

received by the workers at the time the
 The beneficiaries are entitled to shares of stocks are distributed be
homelot and a small farmlot: not reduced.
exceeding 1,000 square meters.
 The same principle shall be applied to
o The beneficiary can use as the associations, with respect to their equity
site of his permanent dwelling; or participation.
o Can be used for raising  Corporations or associations which
vegetables, poultry, pigs and voluntarily divest a proportion of their
other animals and engaging in capital stock, equity or participation in
minor industries. favor of their workers or other qualified
beneficiaries under this section: shall be
 Homelot and small farmlot: should be
deemed to have complied with the
taken from the land awarded to the
provisions of this Act:
cooperative association.
o Provided, that the following
 If the existing homelot is situated conditions are complied with:
within the retained area of the
landowner: a) In order to safeguard the right of
beneficiaries who own shares of
o The beneficiary may be made
stocks to dividends and other
to transfer his dwelling in his
financial benefits, the books of the
farmlot; or
corporation or association shall be
o Other area designated for his subject to periodic audit by certified
homelot public accountants chosen by the
- Provided that the beneficiaries;
landowner shoulders the b) Irrespective of the value of their
cost of the transfer equity in the corporation or
SECTION 31. CORPORATE LANDOWNERS. association, the beneficiaries shall be
assured of at least one (1)
 Corporate landowners may voluntarily representative in the board of
transfer ownership over their agricultural directors, or in a management or
landholdings executive committee, if one exists, of
o to the Republic of the corporation or association; and
the Philippines pursuant to
Section 20 hereof
39
c) Any shares acquired by such the DAR, upon proper application,
workers and beneficiaries shall have determines a lower ceiling.
the same rights and features as all
other shares. In the event that the individual or entity
realizes a profit:
d) Any transfer of shares of stocks by
the original beneficiaries shall be void o an additional ten percent (10%) of the
ab initio unless said transaction is in net profit after tax
favor of a qualified and registered - shall be distributed to said regular
beneficiary within the same and other farmworkers within ninety
corporation. (90) days of the end of the fiscal year.
If within two (2) years from the approval of To forestall any disruption in the normal
this Act: the land or stock transfer operation of lands to be turned over to the
envisioned above is not made or realized or farmworker-beneficiaries mentioned above, a
the plan for such stock distribution approved transitory period, the length of which shall be
by the PARC within the same period, determined by the DAR, shall be established.
 the agricultural land of the corporate During this transitory period, at least one
owners or corporation shall be percent (1%) of the gross sales of the entity
subject to the compulsory coverage shall be distributed to the managerial,
of this Act. supervisory and technical group in place at
the time of the effectivity of this Act.
Note:
o as compensation for such transitory
 Voluntary Land Transfer and Stock managerial and technical functions as
Distribution = allowed only up to June it will perform, pursuant to an
30, 2009. agreement that the farmworker-
 After June 30, 2009 = modes of beneficiaries and the managerial,
acquisition is limited to Voluntary Offer supervisory and technical group may
to Sell and Compulsory Acquisition. conclude, subject to the approval of
the DAR.
 Beneficiaries are afforded the right to
have at least 1 representative in the Note:
corporations or associations board of
 Transitory Provision – applies while
directors or management committee.
the land transfer is being
SECTION 32. PRODUCTION-SHARING. processed and finalized.
 The schemes requires individuals or
Pending final land transfer individuals or entities owning or operating an
entities owning, or operating under lease or agricultural land under lease or
management contract, agricultural lands are management contract to adopt a
hereby mandated to execute a production- production and profit sharing
sharing plan with their farm workers or scheme with farm workers.
farmworkers' organization.
 If more than 5,000,000 gross
Whereby three percent (3%) of the gross sale/year are realized:
sales from the production of such lands are
o 3% of the gross sale – be
distributed within sixty (60) days of the end
distributed to regular and other
of the fiscal year as compensation to regular
farmworkers (over and above the
and other farmworkers in such lands over
compensation they currently
and above the compensation they currently
receive)
receive:
o 1% of the gross sale – be
 Provided, that these individuals or distributed to: managerial,
entities realize gross sales in excess supervisory and technical
of five million pesos per annum unless employees.
40
 If profits are realized: amount corresponding to the valuation as
o Additional 10% of the net profit determined in the immediately succeeding
after tax – be distributed to section.
regular and other farmworkers.  The landowner and the LBP shall
 Section 32 was declared assist the farmers-beneficiaries and
unconstitutional with respect to workers-beneficiaries in the payment
livestock, poultry or swine. for said shares by providing credit
financing.
SECTION 32-A. INCENTIVES. Note:
Individuals or entities owning or operating  Land Bank = it determined the value
fishponds and prawn farms are hereby of shares of a cooperative or
mandated to execute within six (6) months association.
from the effectivity of this Act.
SECTION 34. VALUATION OF LANDS.
 An incentive plan with their regular
fishpond or prawn farmworkers or A valuation scheme for the land shall be
fishpond or prawn farm workers' formulated by the PARC, taking into account
organization, if any: the factors enumerated in Section 17, in
addition to the need to stimulate the growth
 seven point five percent (7.5%) of of cooperatives and the objective of fostering
their net profit before tax from responsible participation of the workers-
the operation of the fishpond or beneficiaries in the creation of wealth.
prawn farms are distributed
within sixty (60) days at the end  In the determination of price that is
of the fiscal year as just not only to the individuals but to
compensation to regular and society as well: the PARC shall
other pond workers in such ponds consult closely with the landowner
over and above the compensation and the workers-beneficiaries.
they currently receive.  In case of disagreement, the price as
determined by the PARC, if accepted
In order to safeguard the right of the regular
by the workers-beneficiaries, shall be
fishpond or prawn farm workers under the
followed, without prejudice to the
incentive plan.
landowner's right to petition
the Special Agrarian Court to resolve
the issue of valuation.
 The books of the fishpond or prawn
farm owners shall be subject to Note:
periodic audit or inspection by Land Bank – responsible for determination of
certified public accountants chosen the land valuation and compensation for all
by the workers. private lands suitable for agriculture under
 The foregoing provision shall not either the Voluntary Offer to Sell and
apply to agricultural lands Compulsory Acquisition.
subsequently converted to fishpond
SECTION 35. CREATION OF SUPPORT
or prawn farms provided the size of
SERVICES OFFICE.
the land converted does not exceed
the retention limit of the landowner. There is hereby created the Office of Support
Services under the DAR to be headed by an
SECTION 33. PAYMENT OF SHARES OF
Undersecretary.
COOPERATIVE OR ASSOCIATION.
The Office shall provide general support and
Shares of a cooperative or association
coordinative services in the implementation
acquired by farmers-beneficiaries or workers-
of the program, particularly in carrying out
beneficiaries shall be fully paid for in an
the provisions of the following services to
41
farmer beneficiaries and affected (7) Assigning sufficient numbers of
landowners: agricultural extension workers to farmers'
organizations;
(1) Irrigation facilities, especially second
crop or dry season irrigation facilities; (8) Undertake research, development and
dissemination of information on agrarian
(2) Infrastructure development and public
reform,plants and crops best suited for
works projects in areas and settlements
cultivation and marketing, and low-cost
that come under agrarian reform, and;
and ecologically sound farm inputs and
 For this purpose, the technologies to minimize reliance on
preparation of the physical expensive and imported agricultural
development plan of such inputs;
settlements providing
(9) Development of cooperative
suitable:
management skills through intensive
a) barangay sites training;
b) potable water and power (10) Assistance in the identification of

resources ready markets for agricultural produce
and training in the other various aspects
c) irrigation systems of marketing;
d) seeds and seedling banks (11) Conduct an effective information
dissemination system through the
e) post harvest facilities
Department of Agriculture to promote
f) other facilities for a sound marketing and minimize spoilage of
agricultural development agricultural produce and products;
plan.
(12) Create a credit guarantee fund for
For the purpose of providing the agricultural landowners that will enhance
aforecited infrastructure and the collateral value of agricultural lands
facilities, the DAR is authorized that are affected or will be affected by
to enter into contracts with coverage under the agrarian reform
interested private parties on long program; and
term basis or through joint-
(13) Administration, operation,
venture agreements or build-
management and funding of support
operate-transfer scheme;
services programs and projects including
(3) Government subsidies for the use of pilot projects and models related to
irrigation facilities; agrarian reform as developed by the DAR.
(4) Price support and guarantee for all Notes:

agricultural produce;
 Success of Agrarian Reform:
(5) Extending to small landowners, depends on the provisions of the
farmers and farmers' organizations the necessary support services and
necessary credit, like concessional and organizational vehicle that will
collateral-free loans, for agro- propel the beneficiaries to attain
industrialization based on social economic independence and self-
collaterals like the guarantees of farmers' reliance.
organizations;
 The lives of Agrarian Reform
(6) Promoting, developing and extending beneficiaries will be uplifted
financial assistance to small and medium- through the provision of support
scale industries in agrarian reform areas; services.
SECTION 36. FUNDING FOR SUPPORT

SERVICES.
42
In order to cover the expenses and cost of In each community, the DAR, together with
support services: the agencies and organizations
abovementioned, shall identify:
 at least forty percent (40%) of all
appropriations for agrarian reform 1) the farmers' association
during the five (5)-year extension
2) cooperative
period shall be immediately set aside
and made available for this purpose: 3) their respective federations
Provided, That the DAR shall pursue - approved by the farmers-beneficiaries
integrated land acquisition and distribution that shall take the lead in the
and support services strategy requiring a agricultural development of the area.
plan to be developed parallel to the land
acquisition and distribution process. In addition, the DAR, in close coordination
with the congressional oversight committee
The planning and implementation for land created herein, with due notice to the
acquisition and distribution shall be hand-in- concerned representative of the legislative
hand with support services delivery: district prior to implementation shall be
authorized to package proposals and receive
Provided, further, That for the next five (5)
grants, aids and other forms of financial
years, as far as practicable, a minimum of
assistance from any source.
two (2) Agrarian Reform Communities (ARCs)
shall be established by the DAR, in Note:
coordination with the:
It mandates the Department of Agrarian
a) local government units Reform to establish Agrarian Reform
Communities in each legislative district with
b) non-governmental organizations
a predominant agricultural population.
c) community-based cooperatives
AGRARIAN REFORM COMMUNITY:
d) people's organizations in each
 composed of and managed by
legislative district with a predominant
agrarian reform beneficiaries
agricultural population
 shall be willing to be organized and to
Provided, furthermore, That the areas in
undertake the integrated
which the ARCs are to be established shall
development of an area their
have beens ubstantially covered under the
organizations or cooperatives.
provisions of this Act and other agrarian or
land reform laws: SECTION 37. SUPPORT SERVICES FOR THE
AGRARIAN REFORM BENEFICIARIES.
Provided, finally, That a complementary
support services delivery strategy for The State shall adopt the integrated policy of
existing agrarian reform beneficiaries that support services delivery to agrarian reform
are not in barangays within the ARCs shall be beneficiaries.
adopted by the DAR.
The DAR, the Department of Finance, and the
For this purpose, an Agrarian Reform Bangko Sentral ng Pilipinas (BSP) shall
Community is composed and managed by institute reforms to liberalize access to
agrarian reform beneficiaries who shall be credit by agrarian reform beneficiaries.
willing to be:
The PARC shall ensure that support services
1. organized for agrarian reform beneficiaries are
provided, such as:
2. to undertake the integrated
development of an area and/or their (a) Land surveys and titling;
organizations/ cooperatives.
(b) Socialized terms on agricultural
credit facilities;
43
Thirty percent (30%) of all  seventy percent (70%) for
appropriations for support services the support services,
referred to in Section 36 of
 fifteen percent (15%) shall
Republic Act No. 6657, as
be earmarked for farm
amended, shall be immediately set
inputs as requested by the
aside and made available for
duly accredited agrarian
agricultural credit facilities:
reform beneficiaries'
 ONE-THIRD (1/3): of this organizations, such as, but
segregated appropriation: not limited to:
shall be specifically allocated
(1) seeds, seedlings
for subsidies to support the
and/or planting
initial capitalization for
materials;
agricultural production to new
agrarian reform beneficiaries (2) organic fertilizers;
upon the awarding of the
(3) pesticides;
emancipation patent or the
certificate of land ownership (4) herbicides; and
award
(5) farm animals,
 REMAINING TWO-THIRDS (2/3) implements/machineri
shall be allocated to provide es;
access to socialized credit to
 five percent (5%) for
existing agrarian reform
seminars, trainings and the
beneficiaries, including the
like to help empower
leaseholders:
agrarian reform
Provided, further, the LBP and other beneficiaries.
concerned government financial
(c) Extension services by way of planting,
institutions, accredited savings and
cropping, production and post-harvest
credit cooperatives, financial service
technology transfer, as well as marketing
cooperatives and accredited
and management assistance and support
cooperative banks shall provide the
to cooperatives and farmers'
delivery system for disbursement of the
organizations;
above financial assistance to individual
agrarian reform beneficiaries, holders (d) Infrastructure such as, but not limited
of collective titles and cooperatives. to, access trails, mini-dams, public
utilities, marketing and storage facilities;
For this purpose, all financing
institutions may accept as (e) Research, production and use of
collateral for loans the purchase organic fertilizers and other local
orders, marketing agreements or substances necessary in farming and
expected harvests: cultivation; and
Provided, That loans obtained shall (f) Direct and active DAR assistance in the
be used in the improvement or education and organization of actual and
development of the farm holding of potential agrarian reform beneficiaries, at
the agrarian reform beneficiary or the barangay, municipal, city, provincial,
the establishment of facilities and national levels, towards helping them
which shall enhance production or understand their rights and
marketing of agricultural products responsibilities as owner-cultivators
of increase farm income developing farm-related trust relationships
therefrom: among themselves and their neighbors,
and increasing farm production and
Provided, further That of the
profitability with the ultimate end of
remaining:
44
empowering them to chart their own 3. Socialized terms on agricultural
destiny. credit facilities
 The representatives of the agrarian 4. Technology Transfer
reform beneficiaries to the PARC
5. Infrastructure such as storage
shall be chosen from the 'nominees
facilities, mini-dams
of the duly accredited agrarian
reform beneficiaries' organizations
- In its absence, from SECTION 37-A. EQUAL SUPPORT SERVICES
organizations of actual and FOR RURAL WOMEN.
potential agrarian reform
Support services shall be extended equally
beneficiaries as forwarded to
to women and men agrarian reform
and processed by the PARC
beneficiaries.
EXCOM.
The PARC shall ensure that these support
 The PARC shall formulate policies to ensure services integrate the specific needs and
that support services for agrarian reform well-being of women farmer-beneficiaries
beneficiaries shall be provided at all stages taking into account the specific
of the program implementation with the requirements of female family members of
concurrence of the concerned agrarian farmer-beneficiaries.
reform beneficiaries.
The PARC shall also ensure that rural women
 The PARC shall likewise adopt, implement, will be able to participate in all community
and monitor policies and programs to ensure activities.
the fundamental equality of women and men
in the agrarian reform program as well as Rural women are entitled to self-organization
respect for the human rights, social to obtain:
protection, and decent working conditions of 1) equal access to economic
both paid and unpaid men and women opportunities
farmer-beneficiaries.
2) to have access to agricultural credit
 The Bagong Kilusang Kabuhayan sa and loans, marketing facilities and
Kaunlaran(BKKK) Secretariat shall be technology
transferred and attached to the LBP, for its
3) other support services, and equal
supervision including all its applicable and
treatment in land reform and
existing funds, personnel, properties,
resettlement schemes.
equipment and records.
The DAR shall establish and maintain a
 Misuse or diversion of the financial and WOMEN'S DESK: which will be primarily
support services herein provided shall result responsible for formulating and implementing
in sanctions against the beneficiary guilty programs and activities related to the
thereof, including the forfeiture of the land protection and promotion of women's rights,
transferred to him/her or lesser sanctions as well as providing an avenue where women
as may be provided by the PARC, without can register their complaints and grievances
prejudice to criminal prosecution. principally related to their rural activities.
Note:
Note:
RURAL WOMEN: those engaged directly or
This mandate the government to extend indirectly in farming or fishing as their
support services to Agrarian Reform source of livelihood, whether:
Beneficiaries such as:
1) paid or unpaid
1. Land Surveys and titling
2) regular or seasonal
2. Liberalized access to credit 3) food preparation
4) managing the household
45
5) caring for the children  Additional incentive of two percent
(2%) in cash: shall be paid to a
6) other similar activities
landowner who maintains his/her
SECTION 38. SUPPORT SERVICES FOR enterprise as a going concern for five
LANDOWNERS (5) years or keeps his/her investments
The PARC, with the assistance of other in a BOI- registered firm for the same
government agencies and instrumentalities, period:
shall provide landowners affected by the - Provided, further, That the
CARP and prior agrarian reform programs rights of the agrarian reform
with the following services: beneficiaries are not, in any
way, prejudiced or impaired
(a) Investment information, financial and thereby.
counseling assistance, particularly
investment information on government- The ff. shall jointly formulate the program to
owned and/or -controlled corporations carry out these provisions under the
and disposable assets of the government supervision of the PARC:
in pursuit of national industrialization
1) DAR
and economic independence:
2) LBP
(b) Facilities, programs and schemes for 3) Department of Trade and Industry
the conversion or exchange of bonds
issued for payment of the lands acquired Provided, That in no case shall the
with stocks and bonds issued by the landowners' sex, economic, religious, social,
National Government, the BSP and other cultural and political attributes exclude them
government institutions and from accessing these support services.
instrumentalities;
Note:
(c) Marketing of agrarian reform
bonds, as well as promoting the  It outlines the support services that
marketability of said bonds in traditional are available to the landowners. Most
and non-traditional financial markets and notable: the incentive granted to a
stock exchanges: and/or landowner who invests in rural-based
industries.
(d) Other services designed to utilize
productively the proceeds of the sale of  A landowner who invests in rural-
such lands for rural industrialization. based industries: entitled to the
incentives granted to a registered
A landowner who invests in rural-based enterprise engaged in a pioneer or
industries shall be entitled to the incentives preferred area of investment under
granted to a registered enterprise engaged in the Omnibus Investment Code of
a pioneer or preferred area of investment as 1987.
provided for in the Omnibus Investment Code
of 1987, or to such other incentives as the  The landbank will redeem the
PARC, the LBP, or other government financial Landowners Agrarian Reform bonds @
institutions shall provide. its face value: If at least 50% of the
proceeds thereof are invested in a:
The LBP shall redeem a
landowner's agrarian reform bonds at 1) Board of Investments-
face value as an incentive: registered company
2) Any Agribusiness; or
 At least fifty percent (50%) of the
proceeds: shall be invested in a Board 3) Agro-Industrial enterprise
of Investments (BOI)-registered - in the region where the
company or in any agri-business or Comprehensive Agrarian Reform
agro-industrial enterprise in the Program-covered landholding is
region where the CARP-covered located.
landholding is located.
46
 If the landowner maintains his reforestation and conservation
enterprise as: production methods.
1) A Going Concern - Subject to existing laws, rules
and regulations, settlers and
2) Keeps his investment in a Board
members of tribal communities
of Investments-registered firm
shall be allowed to enjoy and
for 5 years
exploit the products of the
- he is entitled to be paid an forest other than timber within
additional incentive of 2% in cash the logging concessions.
(3) Sparsely Occupied Public
Agricultural Lands. — Sparsely
SECTION 39. LAND CONSOLIDATION
occupied agricultural lands of the
The DAR shall carry out land consolidation public domain shall be surveyed,
projects: proclaimed and developed as farm
settlements for qualified landless
1) to promote equal distribution of people based on an organized program
landholdings to ensure their orderly and early
2) to provide the needed infrastructures development.
in agriculture
3) to conserve soil fertility and prevent - Agricultural land allocations:
erosion. shall be made for ideal family-
size farms as determined by the
PARC. Pioneers and other
settlers shall be treated equally
in every respect.
- Uncultivated lands of the public
domain shall be made available
CHAPTER X on a lease basis to interested
Special Areas of Concern and qualified parties.
- Parties who will engage in the
SECTION 40. SPECIAL AREAS OF development of capital-
CONCERN. intensive, traditional or
pioneering crops shall be given
As an integral part of the Comprehensive priority.
Agrarian Reform Program, the following
principles in these special areas of - The lease period, which shall
concern shall be observed: not be more than a total of fifty
(50) years, shall be
(1) Subsistence Fishing. — Small proportionate to the amount of
fisherfolk, including seaweed farmers, investment and production
shall be assured of greater access to goals of the lessee. A system of
the utilization of water resources. evaluation and audit shall be
(2) Logging and Mining Concessions. — instituted.
Subject to the requirement of a
balanced ecology and conservation of
water resources, suitable areas, as (4) Idle, Abandoned, Foreclosed and
determined by the Department of Sequestered Lands. — Idle, abandoned,
Environment and Natural Resources foreclosed and sequestered lands shall
(DENR), in logging, mining and pasture be planned for distribution as home lots
areas. and family-size farmlots to actual
occupants.
- Shall be opened up for agrarian
settlements whose beneficiaries
shall be required to undertake
47
- If land area permits, other SECTION 41. THE PRESIDENTIAL
landless families shall be AGRARIAN REFORM COUNCIL.
accommodated in these lands.
The Presidential Agrarian Reform Council
(5) Rural Women. — All qualified (PARC) shall be composed of:
women members of the agricultural
labor force must be guaranteed and I. the President of the Philippines as
assured equal right to ownership of the Chairperson
land, equal shares of the farm's II. the Secretary of Agrarian Reform as
produce, and representation in advisory Vice-Chairperson
or appropriate decision-making bodies. III. The following as members:
(6) Veterans and Retirees. — In 1. Secretaries of the Departments of

accordance with Section 7 of Article Agriculture
XVI of the Constitution, landless war 2. Environment and Natural
veterans and veterans of military Resources
campaigns, their surviving spouses and
3. Budget and Management;
orphans, retirees of the Armed Forces
of the Philippines (AFP) and the 4. Interior and Local Government
Integrated National Police (INP), 5. Public Works and Highways
returnees, surrendered, and similar 6. Trade and Industry; Finance
beneficiaries shall be given due
7. Labor and Employment Director-
consideration in the disposition of
General of the National Economic
agricultural lands of the public domain.
and Development Authority
(7) Agriculture Graduates. —
8. President, Land Bank of the
Graduates of agricultural schools who
Philippines
are landless shall be assisted by the
government, through the DAR, in their 9. Administrator
desire to own and till agricultural 10. National Irrigation Administration
lands. 11. Administrator, Land Registration
Authority
12. Six (6) representatives of
Note:
affected landowners to
Farm Settlements may be open in the ff. represent Luzon, Visayas and
areas: Mindanao
1. Lodging and Mining concessions: 13. Six (6) representatives of
agrarian reform beneficiaries, two
 May be open here – provided that
(2) each from Luzon, Visayas and
the beneficiaries will undertake
Mindanao
reforestation and conservation
production methods. Provided that:
2. Sparsely occupied public agricultural  At least one (1) of them shall be from
land: the indigenous peoples
 Farm settlement may be open here  That at least one (1)of them shall
for qualified landless people – come from a duly recognized national
pursuant to an organized program organization of rural women or a
to ensure orderly development. national organization of agrarian
reform beneficiaries with a
substantial number of women
members:
CHAPTER XI
Program Implementation  That at least twenty percent (20%) of
the members of the PARC shall be
women but in no case shall they be
less than two (2).
48
SECTION 44. PROVINCIAL AGRARIAN
SECTION 42. EXECUTIVE REFORM COORDINATING COMMITTEE
(PARCCOM).
COMMITTEE.
© Provincial Agrarian Reform
 There shall be an Executive
Coordinating Committee is created in
Committee (EXCOM) of the PARC.
each provinces
 Composed of:
It is composed of:
o the Secretary of the DAR as
Chairman,  A Chairman p who shall be
appointed by the President upon the
o other members as the
recommendation of the EXCOM
President may designate,
 The Provincial Agrarian Reform
- taking into account Article XIII,
Officer as Executive Office
Section 5 of the Constitution.
 One (1) representative each from:
 Unless otherwise directed by PARC:
the EXCOM may meet and decide on 1) Departments of Agriculture
any and all matters in between 2) Environment and Natural
meetings of the PARC. Resources
 Provided, however, that its 3) LBP;
decisions must be reported to the
PARC immediately and not later  One (1) representative each from:
than the next meeting. a) existing farmers'
organizations
b) agricultural cooperatives
c) non-governmental
organizations in the
SECTION 43. SECRETARIAT.
province;
PARC Secretariat : is established to provide
general support and coordinative services  Two (2) representatives from
such as: landowners
1. inter-agency linkages o at least one (1) of whom shall be
a producer representing the
2. program and project appraisal
principal crop of the province,
3. evaluation and general operations  Two (2) representatives from farmers
monitoring for the PARC. and farmworkers or beneficiaries
 It shall be headed by the o at least one (1) of whom shall be
Secretary of Agrarian Reform a farmer or farmworker
 He shall be assisted by an representing the principal crop
Undersecretary of the province, as members:
 That in areas where there are cultural
 Supported by a staff whose
communities, the latter shall likewise
composition shall be determined
have one (1) representative.
by the PARC Executive
Committee
© The PARCCOM shall coordinate and
o whose compensation shall monitor the implementation of the
be chargeable against the CARP in the province.
Agrarian Reform Fund.
© It shall provide information on the
- All officers and employees of the provisions of the CARP, guidelines
Secretariat shall be appointed by the issued by the PARC and on the
Secretary of Agrarian Reform. progress of the CARP, in the
province;
49
The PARC shall provide the guidelines for the
province-by-province implementation of the
In addition, it shall:
CARP.
(a) Recommend to the PARC the following: Taking into account:
(1) Market prices to be used in the 1. The peculiarities and needs of

determination of the profit sharing each place
obligation of agricultural entities in the 2. Kind of crops needed or suited
province 3. Land distribution workload
(2) Adoption of the direct payment 4. Beneficiaries development
scheme between the landowner and the activities
farmer and/or farmworker beneficiary. 5. Other factors prevalent or
obtaining in the area.
Provided:
 The implementing agencies at the
- The amount and terms of provincial level shall promote the
payment are not more development of identified ARCs without
burdensome to the agrarian neglecting the needs and problems of
reform beneficiary than under the other beneficiaries.
compulsory coverage provision of  The ten-year program of distribution of
the CARL: public and private land in each province
shall be adjusted from year to year by
- The agrarian reform beneficiary
the province's PARCCOM in accordance
agrees to the amount and terms
with the level of operations previously
of payment.
established by the PARC.
- The DAR shall act as mediator in - in every case ensuring that support
cases of disagreement between services are available or have been
the landowner and the farmer programmed before actual
and/or farmworker beneficiary; distribution is effected.
Note:
- The farmer and/or farmer
beneficiary shall be eligible to  It mandates the implementation of
borrow from the LBP an amount the Agrarian Reform Program on a
equal to eighty-five percent (85%) province by province basis because of
of the selling price of the land the peculiarities and needs of each
that they have acquired; province.
 Provincial Agrarian Reform
(3) Continuous processing of Committee – coordinates and
applications for lease back monitors the implementation of the
arrangements, joint-venture agreements Agrarian Reform Program in the
and other schemes that will optimize the province.
operating size for agricultural production
 Promote both security of tenure SECTION 46. BARANGAY AGRARIAN

and security of income to farmer REFORM COMMITTEE (BARC).
beneficiaries: Unless otherwise provided in this Act, the
provisions of Executive Order No. 229
- Provided, That lease back
regarding the organization of the Barangay
arrangements should be the
Agrarian Reform Committee (BARC) shall be
last resort.
in effect.
SECTION 45. PROVINCE-BY-PROVINCE Note:
IMPLEMENTATION.
50
 Composition of Barangay Agrarian (h) Perform such other functions as
Reform Committee: may be assigned by the DAR.
1. Farmers and farmworkers
The BARC shall endeavor to mediate,
beneficiaries
conciliate and settle agrarian disputes:
2. Farmers and farmworkers non-
o within thirty (30) days from its taking
beneficiaries
cognizance thereof.
3. Agricultural Cooperatives
If after the lapse of the thirty days it is
4. Other Farmer Organizations
unable to settle the dispute:
5. Barangay Council
o it shall issue a certificate of its
6. Non-government Organizations
proceedings
7. Landowners o shall furnish a copy thereof upon the
8. Landbank parties within seven (7) days after the
9. Official of the Department of expiration of the thirty-day period.
Agriculture assigned to the Note:
barangay
The functions of the Barangay Agrarian
10. Official of the Department of Reform Committee are:
Environment and Natural
1. To participate and give support to the
Resources official assigned to
implementation of programs on
the area
Agrarian Reform
11. Department of Agrarian
2. To mediate, conciliate or arbitrate
Reform Technologist assigned
Agrarian conflicts and issues that are
to the area who shall act as the
brought to it for resolution
secretary.
3. To perform such other functions that
the Presidential Agrarian Reform
SECTION 47. FUNCTIONS OF THE BARC. Council, its Executive Committee of
The BARC shall have the following functions: the Department of Agrarian Reform
Secretary may delegate from time to
(a) Mediate and conciliate between time.
parties involved in an agrarian
dispute including matters related to
tenurial and financial arrangements; SECTION 48. LEGAL ASSISTANCE.
(b) Assist in the identification of The BARC or any member thereof may,
qualified beneficiaries and whenever necessary in the exercise of any of
landowners within the barangay; its functions hereunder: seek the legal
assistance of the DAR and the provincial,
(c) Attest to the accuracy of the city, or municipal government.
initial parcellary mapping of the
Note:
beneficiary's tillage;
 To ensure that it proposed solution to
(d) Assist qualified beneficiaries in the dispute is within the bounds of
obtaining credit from lending law.
institutions;
SECTION 49. RULES AND REGULATIONS.
(e) Assist in the initial determination
The PARC and the DAR shall have the power:
of the value of the land;
a) to issue rules and regulations
(f) Assist the DAR representatives in
(substantive or procedural)
the preparation of periodic reports on
b) to carry out the objects and purposes
the CARP implementation for
of this Act.
submission to the DAR;
Said rules shall take effect ten (10) days
(g) Coordinate the delivery of support
after publication in two (2) national
services to beneficiaries; and
newspapers of general circulation.
51
Note: g) issue subpoena and subpoena
duces tecum
o PARC and DAR are authorize to
promulgate rules regulations to carry h) to enforce its writs through
out the purpose of the Agrarian sheriffs
Reform Program. i) other duly deputized officers.
o In the exercise of their rule making  It shall likewise have the power to
power, they cannot enlarge or amend punish direct and indirect contempts
the provisions of the statue. in the same manner and subject to
CHAPTER XII the same penalties as provided in the
Administrative Adjudication Rules of Court.
SECTION 50. QUASI-JUDICIAL POWERS OF  Responsible farmer leaders shall be

THE DAR allowed to represent themselves, their
fellow farmers, or their organizations in
The DAR: any proceedings before the DAR.
1) vested with primary jurisdiction to  When there are two or more
determine and adjudicate agrarian representatives for any individual or
reform matters group: the representatives should choose
2) Shall have exclusive original only one among themselves to represent
jurisdiction over all matters involving such party or group before any DAR
the implementation of agrarian proceedings.
reform  Notwithstanding an appeal to the Court of
3) except those falling under the Appeals, the decision of the DAR shall be
exclusive jurisdiction of the immediately executory except a decision
Department of Agriculture (DA) and or a portion thereof involving solely the
the DENR. issue of just compensation.
 It shall not be bound by Note:
technical rules of procedure TWO-FOLD JURISDICTION OF DAR:
and evidence. 1. Executive – The enforcement and
- But shall proceed to hear and administration of the laws, carrying
decide all cases, disputes or them into practical operation and
controversies in a most observing their due observance.
expeditious manner, 2. Judicial – Determination of rights and
employing all reasonable obligation of the parties.
means to ascertain the facts
of every case in accordance
Department of Department of
with justice and equity and
Agrarian Reform Agrarian Reform
the merits of the case.
Regional Office Adjudication Board
 It shall adopt a uniform rule of
Implementation of Adjudication of
procedure to achieve a just,
Agrarian Laws Agrarian Reform
expeditious and inexpensive
Cases
determination of every action
or proceeding before it. Executive in nature Judicial in nature
 It shall have the power to: Pertains to the Determination of
enforcement and rights and
a) summon witnesses
administration of the obligation of the
b) administer oaths laws, carrying them parties.
c) take testimony into practical
d) require submission of reports operation and
enforcing their due
e) compel the production of
observance.
books and documents
f) answers to interrogatories
52
3. Annulment or recession of lease
contracts or deeds of sale of lands
under the administration and
Quasi-Judicial Power of the DAR = exercised disposition of Department of Agrarian
through DARAB Reform and Landbank.
1. Primary Jurisdiction to determine and 4. Ejectment and dispossession of
adjudicate agrarian reform matters tenants or leaseholder
2. Appellate jurisdiction over orders and 5. Sale, Alienation, preemption and
decisions of the Agrarian Reform redemption of agricultural lands
Adjudicators
6. Correction, partition, secondary and
subsequent issuances such as
Department of Agrarian Reform Adjudication reissuance of lost or destroyed
Board are authorized to: owner’s duplicate copy and
1. Hear and decide cases within its reconstitution of title and patent
jurisdiction registered with the LRA.
2. Summon witnesses 7. Review of Leasehold rentals and
3. Administer Oaths fixing of disturbance compensation.
4. Take testimony 8. Collection of amortization payments,
foreclosure and similar disputes
5. Issue Subpoena ad testificandum or
concerning the functions of Land
Duces Tecum
Bank and payments for lands awarded
6. Issue Writs of Execution under agrarian laws.
7. Punish direct or indirect contempt 9. Boundary disputes over lands which
were transferred, distributed, or sold
Provincial Agrarian Reform Adjudicator: has to tenant beneficiaries and covered
the primary and exclusive jurisdiction to hear by deed of sale, patents and
and decide agrarian disputes. certificate of title.
Agrarian Disputes: refers to any controversy 10. Cases falling under the jurisdiction of
relating to tenurial arrangements over lands the defunct Court of Agrarian
devoted to agriculture. Relations except those cases falling
- It includes any controversy relating to under the proper court or other quasi-
compensation of land acquired under judicial bodies.
this act. 11. Other Agrarian cases, disputes,
- Other terms and conditions of matters or concerns referred to it by
transfer of ownership from the Secretary of Department of
landowners to farmworkers, tenants Agrarian Reform.
and other agrarian reform
beneficiaries.  Decisions of the Provincial Agrarian
Reform Adjudicator
JURISDICTION OF PROVINCIAL AGRARIAN  Appealable to the Department
REFORM ADJUDICATOR of Agrarian Reform
To determine and adjudicate matters Adjudication Board
pertaining to:  Within 15 days from the
1. Rights and obligation of person receipt of the resolution,
engaged in the management, decision or order appealed
cultivation and use of all agricultural from
lands covered by the CARL.
2. Preliminary administrative REGIONAL AGRARIAN REFORM
determination of reasonable and just ADJUDICATOR – the executive adjudicator in
compensation of lands acquired the Region.
It is vested with the following functions:
53
1. Administrative supervision over the implementation of the CARP except those
Provincial Reform Adjudicator provided under Section 57 of Republic Act
2. Conduct hearing and Adjudication of No. 6657, as amended.
Agrarian Disputes within the Region  If there is an allegation from any of the
3. Conduct hearing on the following: parties that the case is agrarian in nature
and one of the parties is a farmer,
a) Cases that cannot be handled by
farmworker, or tenant, the case shall be
the Provincial Agrarian Reform
automatically referred by the judge or the
Adjudicator
prosecutor to the DAR
b) Matters of such complexity and
o Which shall determine and certify
sensitivity that the decision
within fifteen (15) days from referral
thereof would constitute an
whether an agrarian dispute exists:
important precedent affecting
regional interest as may be o From the determination of the DAR,
recommended by the concerned an aggrieved party shall have
Regional Agrarian Reform judicial recourse.
Adjudicator  In cases referred by the municipal trial
c) Preliminary determination of just court and the prosecutor's office, the
compensation of lands valued at appeal shall be with the proper regional
10,000,000.00 to 50,000,000.00. trial court.
d) Conduct hearing on applications  In cases referred by the regional trial
for the issuance of a writ of court, the appeal shall be to the Court of
preliminary injunction or Appeals.
temporary restraining order and  In cases where regular courts or quasi-
such other cases which the judicial bodies have competent
DARAB may assign. jurisdiction:
o Agrarian reform beneficiaries or
DARAB has no jurisdiction over matters identified beneficiaries and/or their
pertaining to: associations shall have legal
standing and interest to intervene
a) ownership.
concerning their individual or
b) Matters pertaining to retention rights collective rights and/or interests
of the landowners and the exclusion under the CARP.
or exemption from agrarian reform
 The fact of non-registration of such
coverage. It is cognizable by the
associations with the Securities and
Secretary of the Department of
Exchange Commission, or Cooperative
Agrarian Reform because they pertain
Development Authority, or any concerned
to administrative implementation of
government agency:
Agrarian Law.
o shall not be used against them to
c) Matters pertaining to a petition for
deny the existence of their legal
right of way or easement against an
standing and interest in a case filed
adjoining landowner
before such courts and quasi-judicial
d) To identify and classify landholdings bodies.
for Agrarian Reform Coverage
e) To identify and select beneficiaries.
(Cognizable by Secretary of Agrarian
Reform) Note:
DAR – has the primary jurisdiction to
determine and adjudicate Agrarian Reform
SECTION 50-A. EXCLUSIVE JURISDICTION
matters.
ON AGRARIAN DISPUTE
If a party directly file a case with regular
No court or prosecutor's office shall take court: It should refer the matter to the
cognizance of cases pertaining to the
54
Department of Agrarian Reform for the © A certification from the BARC that
purpose of determining and certifying within the dispute has been submitted to it
15 days from referral whether an agrarian for mediation and conciliation
disputes exist. without any success of settlement is
The aggrieved party has 15 days to appeal presented
the ruling of DAR to the:
1. Regional Trial Curt – for cases
referred by the Municipal Trial Court If no certification is issued by the BARC
of the Prosecutor’s office within thirty (30) days: after a matter or issue
is submitted to it for mediation or
2. Court of Appeals – for cases referred
conciliation the case or dispute may be
by the Regional Trial Court
brought before the PARC.
SECTION 51. FINALITY OF DETERMINATION
Note:
Any case or controversy before it shall be
decided within thirty (30) days after it is BARC Certification is not necessary on the ff.
submitted for resolution. cases:
 Only one (1) motion for 1. The issue involves the valuation of
reconsideration shall be allowed. land to determine just compensation
 Any order, ruling or decision shall be for its acquisition
final after the lapse of fifteen (15) 2. One party is a public corporation,
days from receipt of a copy thereof. partnership, association or juridical
person or a public officer or employee
Note:
and the dispute is related to the
If the order, ruling, decision is tainted with performance of his official functions
grave abuse of discretion amounting to lack 3. The Secretary of Department of
of jurisdiction, the aggrieved party can file: Agrarian Reform directly refers the
Special Civil Action for Certiorari matter to the Department of Agrarian
SECTION 52. FRIVOLOUS APPEALS Reform Adjudication Board or
Adjudicator
To discourage frivolous or dilatory appeals 4. The Municipal Agrarian Reform Officer
from the decisions or orders on the local or or in his absence, the Senior Agrarian
provincial levels: Reform Program Technologist or
 the DAR may impose reasonable Agrarian Reform Program
penalties, including but not limited to Technologist certifies the
fines or censures upon erring nonexistence of the Barangay
parties. Agrarian Reform Committee or the
inability of the Barangay Agrarian
Note: Reform Committee to convene.
Frivolous or Dilatory appeal:  Barangay Agrarian Reform Committee is

 means that the appeal is being needed only for cases files before the
prosecuted for an improper motive Department of Agrarian Reform
 a factual matter which should be Adjudication Board.
decided according to the surrounding  The jurisdiction of Special Agrarian Courts
facts and circumstances over petitions for determination of just
compensation is original and exclusive.
SECTION 53. CERTIFICATION OF THE BARC CHAPTER XIII
Judicial Review
The DAR shall not take cognizance of any
agrarian dispute or controversy unless:
SECTION 54. CERTIORARI
55
Any decision, order, award or ruling of the (RTC) within each province to act as
DAR on any agrarian dispute or on any matter a Special Agrarian Court.
pertaining to the application,
The Supreme Court may designate more
implementation, enforcement, or
branches to constitute such additional
interpretation of this Act other pertinent
Special Agrarian Courts as may be necessary
laws on agrarian reform may be:
to cope with the number of agrarian cases in
 brought to the Court of Appeals by each province.
certiorari  The Supreme Court shall give preference to
 except as otherwise provided in this the Regional Trial Courts:
Act
 Within fifteen (15) days from the a) which have been assigned to handle
receipt of a copy thereof. agrarian cases; or
b) whose presiding judges were former
The findings of fact of the DAR shall be final
judges of the defunct Court of
and conclusive if based on substantial
Agrarian Relations.
evidence.
© Regional Trial Court (RTC) Judges assigned
to said courts: shall exercise said special
SECTION 55. NO RESTRAINING ORDER OR jurisdiction in addition to the regular
PRELIMINARY INJUNCTION jurisdiction of their respective courts.
Except for the Supreme Court, no court in the © Special Agrarian Courts: shall have the
Philippines shall have jurisdiction to issue powers and prerogatives inherent in or
any restraining order or writ of preliminary belonging to the Regional Trial Courts.
injunction against the: Note:
1) PARC,
 Regional Trial Court which have not
2) the DAR been designated as Special Agrarian
3) or any of its duly authorized or Court: cannot hear petition for
designated agencies determination of just compensation
In any case, dispute or controversy arising even if the land subject of such
from, necessary to, or in connection with the cases happen to be within their
application, implementation, enforcement, or territorial jurisdiction.
interpretation of this Act and other pertinent
laws on agrarian reform.
Note:
Exemption:
 Once the ruling is rendered and the SECTION 57. SPECIAL JURISDICTION
aggrieved party brings the matter to The Special Agrarian Courts shall have
the proper courts, the prohibition will original and exclusive jurisdiction:
no longer apply.
 The court can issue a restraining 1) all petitions for the determination of
order or injunction as an ancillary just compensation to landowners
relief, particularly when the 2) the prosecution of all criminal
jurisdictional error or grave abuse of offenses under this Act.
discretion was committed in 3) decide all appropriate cases under
rendering the ruling. their special jurisdiction within thirty
(30) days from submission of the case
for decision.
SECTION 56. SPECIAL AGRARIAN COURT
The Rules of Court shall apply to all
The Supreme Court shall designate at least proceedings before the Special Agrarian
one (1) branch of the Regional Trial Court Courts, unless modified by this Act.
56
Note: 1) Filing a petition for review with the
Court of Appeals
 The party who disagrees with the
decision of the Adjudicator (just 2) within fifteen (15) days from receipt
compensation) may contest the same of notice of the decision;
in the Special Agrarian Court having 3) otherwise, the decision shall become
jurisdiction over the subject property final.
within 15 days from his receipt of the
adjudicator decision.  An appeal from the decision of the Court of
Appeals, or from any order, ruling or
SECTION 58. APPOINTMENT OF decision of the DAR, as the case may be
COMMISSIONERS shall be:
The Special Agrarian Courts (upon their own  by a petition for review with the
initiative or at the instance of any of the Supreme Court within a non-extendible
parties): period of fifteen (15) days from receipt
of a copy of said decision.
 May appoint one or more
Note:
Commissioners
o to examine, investigate and  Remedy from an adverse decision
ascertain facts relevant to the rendered by the RTC acting as
dispute including the valuation of Special Agrarian Court:
properties
o Appeal via petition for review
o to file a written report thereof
under Rule 43 of the Rules of
with the court.
Court
Note:  15 day period to file petition for
review with the Supreme Court is non-
RULE 32 OF RULES OF COURT:
extendible.
 A party has 10 days within which to
signify grounds for objections to the
findings of the report. SECTION 61. PROCEDURE ON REVIEW
 Upon expiration of 10 days: The  Review by the Court of Appeals or the

matter will be set for hearing after Supreme Court: as the case may be,
which the court will issue an order shall be governed by the Rules of
adopting, modifying or rejecting the Court.
report in whole in part.
 The Court of Appeals may require the
parties to file simultaneous
SECTION 59. ORDERS OF THE SPECIAL memoranda within a period of fifteen
AGRARIAN COURTS (15) days from notice, after which the
case is deemed submitted for
No order of the Special Agrarian Courts on decision.
any issue, question, matter or incident raised
Note:
before them shall be elevated to the
APPELLATE COURTS . On Appeal: the procedures outlined in the
Rules of Court will govern.
- until the hearing shall have been
terminated and the case decided on To expedite the proceedings:
the merits.
 The court can just require the parties
to submit simultaneous memorandum
 Within 15 days after which the case
SECTION 60. APPEALS shall be deemed for decision
An appeal may be taken from the decision of
the Special Agrarian Courts by:
57
SECTION 62. PREFERENTIAL ATTENTION IN for compensation to victims of human
COURTS rights violations under the applicable
law)
All courts in the Philippines (both trial and
appellate): (c) Proceeds of the disposition and
development of the properties of the
 shall give preferential attention to all Government in foreign countries.
cases arising from or in connection
For the specific purposes: of
with the implementation of the
financing production credits,
provisions of this Act.
infrastructure and other support
All cases pending in court arising from or in services required by this Act;
connection with the implementation of this (d) All income and collections of
Act: whatever form and nature arising
 shall continue to be heard, tried and from the agrarian reform operations,
decided into their finality, projects and programs of the DAR
notwithstanding the expiration of the and other CARP implementing
ten-year period mentioned in Section agencies;
5 hereof. (e) Portion of amounts accruing to the
Philippines from all sources of official
CHAPTER XIV
foreign aid grants; and
Financing
- concessional financing from all
SECTION 63. FUNDING SOURCE countries, to be used for the
The amount needed to further implement the specific purposes of financing
CARP as provided in this Act, until June 30, productions, credits,
2014, upon expiration of funding under infrastructures, and other
Republic Act No. 8532 and other pertinent support services required by this
laws: Act;
(f) Yearly appropriations of no less than
 shall be funded from the Agrarian
Five billion pesos (P5,000,000,000.00)
Reform Fund
from the General Appropriations
 other funding sources in the amount Act;
of at least One hundred fifty billion
(g) Gratuitous financial assistance from
pesos (P150,000,000,000.00).
legitimate sources; and
 Additional amounts are hereby
(h) Other government funds not
authorized to be appropriated as and
otherwise appropriated.
when needed to augment the Agrarian
Reform Fund in order to fully  All funds appropriated to implement
implement the provisions of this Act the provisions of this Act shall be
during the five (5)-year extension considered continuing appropriations
period. during the period of its
implementation:
 Provided, That if the need arises,
Sources of funding or appropriations shall
specific amounts for bond
include the following:
redemptions, interest payments and
other existing obligations arising from
(a) Proceeds of the sales of the the implementation of the program
Privatization and Management Office shall be included in the annual
(PMO); General Appropriations Act:
(b) All receipts from assets recovered  Provided, further, That all just
and from sales of ill-gotten wealth compensation payments to
recovered through the PCGG landowners, including execution of
(excluding the amount appropriated judgments therefor, shall only be
58
sourced from the Agrarian Reform 2) Determine the just compensation
Fund: 3) Determine the value of the Land
 Provided, however, That just 4) Using their valuation, the DAR makes
compensation payments that cannot an offer to the Landowner,
be covered within the approved
annual budget of the program shall be CHAPTER XV
chargeable against the debt service General Provisions
program of the national government,
or any unprogrammed item in the SECTION 65. CONVERSION OF LANDS
General Appropriations Act:
After the lapse of five (5) years from its
 Provided, finally, That after the award when:
completion of the land acquisition
and distribution component of the 1) the land ceases to be economically
CARP, the yearly appropriation shall feasible; and
be allocated fully to support services, 2) sound for agricultural purposes,
agrarian justice delivery and 3) or the locality has become
operational requirements of the DAR urbanized; and
and the other CARP implementing 4) the land will have a greater
agencies. economic value for residential,
Note: commercial or industrial purposes,
 Just compensation to Landowner: can The DAR, upon application of the

only be sourced from the Agrarian Reform beneficiary or the landowner with
Fund. respect only to his/her retained area
 If the annual budget for the Agrarian which is tenanted, with due notice to
Reform Fund is not sufficient: the affected parties, and subject to
existing laws:
 Just Compensation payment shall
be charged against:  may authorize the reclassification
o The debt service program of or conversion of the land and its
the National Government; or disposition.
o Any unprogrammed item in
 If the applicant is a beneficiary under
the General Appropriation
agrarian laws and the land sought to
Act
be converted is the land awarded to
him/her or any portion thereof, the
SECTION 64. FINANCIAL INTERMEDIARY applicant, after the conversion is
FOR THE CARP granted:
o shall invest at least ten percent
The Land Bank of the Philippines shall be: (10%)of the proceeds coming
from the conversion in
 The financial intermediary for the
government securities.
CARP
 Shall insure that the social justice  That the applicant upon conversion:
objectives of the CARP shall fully pay the price of the land
 Shall enjoy a preference among its  Irrigated and irrigable lands: shall not
priorities. be subject to conversion.
 The National Irrigation Administration:
shall submit a consolidated data on
Note: the location nationwide of all irrigable
LANDBANK: lands within one (1) year from the
effectivity of this Act.
1) Financial arm of the Agrarian Reform
Program
59
Failure to implement the conversion plan o Do not require any conversion,
within five (5) years from the approval of clearance or authority from
such conversion plan or any violation of the DAR.
conditions of the conversion order due to the
 After June 15, 1988:
fault of the applicant shall cause the land to
automatically be covered by CARP. o Authority of the DAR to
approve or disapprove
Note:
conversion of Agricultural
CONVERSION: the act or process of changing Land
the current physical use of a piece of o Conversion approval is
agricultural land into some other use. necessary even if the land has
Such as: been reclassified as non-
agricultural by the LGU or
 For residential, commercial, Presidential Proclamation
industrial, institutional and other non-
agricultural purposes Take note: Reclassification alone will not
suffice to use the Agricultural lands for
 For another type if agricultural nonagricultural purposes. Conversion is need
activity to change the current use of reclassified
o Livestock, poultry and agricultural lands.
fishpond
o Effect: To exempt the land
from CARP coverage
 For non-agricultural use other than
that previously authorized. The ff. can apply for Land conversion:
 Change of crops to: Commercial Crops and 1. the beneficiary

High value crops 2. the land owner with respect only to
o Not considered as a conversion in his retained area which is tenanted
the use or nature of the land. 3. Government agencies, GOCC and
RECLASSIFICATION: act of specifying how LGU’s
agricultural lands shall be utilized for non- Application for conversion may be filed: after
agricultural uses as embodied in the land use the lapse of 5 years from the award of the
plan, subject to the requirements and land.
procedures for land use conversion.
Conditions:
 It includes reversion of non-
agricultural lands to agricultural use. 1. The land ceases to be economically
feasible for agricultural purposes
 Mere reclassification of an
Agricultural Land: does not 2. The locality has become urbanized
automatically allow the landowner to 3. The land will have a greater economic
change its use. value for residential, commercial or
 It should undergo the PROCESS industrial purposes
OF CONVERSION before he is Obligations of the Beneficiaries:
permitted to use the
Agricultural Land for other 1. Invest 10% of the proceed from the
purposes. conversion in Government securities
 Agri. Lands already reclassified prior 2. Pay the full price of the Land upon
to June 15, 1988: conversion
Lands that absolutely cannot be subject to
conversion:
60
1. Agricultural lands within protected Comprehensive Agrarian
areas designated under the National Reform Program
Integrated Protected Areas System as
5. Environmentally critical areas or
determined by DENR.
those involving establishment of
- Mossy, virgin forest, an Environmentally Critical Project
riverbanks, swamp forests or
Rationale for restriction: They require an
marshlands
Environmental Compliance Certificate
2. All irrigated lands (as delineated by from DENR.
DAR and National Irrigation
 If the approved conversion plan is
Administration)
not implemented (within 5 years
- where water is available to from approval): Land will continue
support rice and other crop to be covered by the Agrarian
production Reform Program.
- where water is not available Criminal Violation:
for rice and other crop
1. Conversion of agricultural land to
production but are within
non-agricultural use – if done with
areas programmed for
intent to avoid the application of
irrigation facility rehabilitation
the law to his landholdings and to
government.
dispossess his bona fide tenant
3. All irrigable lands already covered farmers.
by irrigation projects with firm
2. Sale-transfer-conveyance or
funding commitments
change of the nature of lands
4. All agricultural lands with outside of urban centers and city
irrigation facilities limits either: in whole or in part
after the effectivity of CARL of
Areas highly restricted for conversion:
1988.
1. Irrigable lands not covered by
Except: Final completion of the
irrigation projects with firm
appropriate conversion under
funding commitment
Section 65 said law.
2. Agro-industrial croplands or lands
presently planted to industrial
SECTION 65-A. CONVERSION INTO
crops that support the economic
viability of existing agricultural FISHPOND AND PRAWN FARMS
infrastructure and agro-based
 No conversion of public agricultural
enterprises
lands into fishponds and prawn farms
3. Highlands or areas located in
elevation of 500 meters or above shall be made.
and have the potential for growing
- Except: in situations where the
semi-temperate and usually high-
value crops provincial government with the
4. Lands issued with notice of land concurrence of the Bureau of

valuation and acquisition; or
Fisheries and Aquatic Resources
subject of a perfected
(BFAR) declares a coastal zone as
agreement between the
landowner and the suitable for fishpond development.
beneficiaries under the
o In such case, the Department of
voluntary land
transfer/direct payment Environment and Natural
scheme under the
61
Resources (DENR) shall allow a) When the use of the land is more
the lease and development of economically feasible and sound for
such areas: fishpond and/or prawn farm, as
Provided: The declaration shall not apply certified by the Bureau of Fisheries
to environmentally critical projects and and Aquatic Resources (BFAR); and
areas as contained in title (A) sub- b) A simple and absolute majority of the
paragraph two, (B-5) and (C-1) and title regular farm workers or tenants agree
(B), number eleven (11) of Proclamation to the conversion, the Department of
No. 2146. Agrarian Reform, may approve
Entitled "Proclaiming Certain applications for change in the use of
Areas and Types of Projects as the land:
Environmentally Critical and Provided, finally, That no piecemeal
Within the Scope of the conversion to circumvent the provisions of
Environmental Impact this Act shall be allowed.
Statement (EIS) System In these cases where the change of use is
established under Presidential approved, the provisions of Section 32-A
Decree No. 1586," hereof on incentives shall apply.
 To ensure the protection of river
systems, aquifers and mangrove SECTION 65-B. INVENTORY
vegetations from pollution and
WITHIN ONE (1) YEAR FROM THE
environmental degradation.
EFFECTIVITY OF THIS ACT:
o Provided, further, That the
approval shall be in accordance 1) The BFAR shall undertake and finish
with a set of guidelines to be an inventory of all government and
drawn up and promulgated by the private fishponds and prawn farms.
DAR and the BFAR. 2) Undertake a program to promote the
o Provided, furthermore, That small- sustainable management and
farmer cooperatives and utilization of prawn farms and
organizations shall be given fishponds.
preference in the award of the  No lease under Section 65-A
Fishpond Lease Agreement (FLAs). hereof may be granted until
 No conversion of more than five (5) after the completion of the said
hectares of private lands to fishpond and inventory.
prawn farms shall be allowed after the The sustainable management and utilization
passage of this Act. of prawn farms and fishponds shall be in
Except: accordance with:
62
 The effluent standards  A portion of the fishpond area fronting
 Pollution charges the sea (sufficient to protect the
 Other pollution control measures environment):
such as:  Shall be established as a buffer
o but not limited to, the quantity zone; and
of fertilizers, pesticides; and  Be planted to specified
o other chemicals used mangrove species to be

determined in consultation with
That may be established by the:
the regional office of the DENR.
1) Fertilizer and Pesticide Authority
The Secretary of Environment and Natural
(FPA)
Resources shall provide the penalties for any
2) The Environmental Management
violation of this undertaking as well as the
Bureau (EMB)
rules for its implementation.
3) Other appropriate government
regulatory bodies Note:
4) Existing regulations governing water Purpose of this Act: To harmonize agrarian
utilization reform with environmental laws.
5) Primarily Presidential Decree No.

SECTION 65-D. CHANGE OF CROPS.
1067, entitled A Decree Instituting A
 The change of crops to commercial
Water Code.
crops or high value crops:
Thereby Revising and Consolidating the Laws
o shall not be considered as a
Governing the Ownership, Appropriation,
conversion in the use or nature of
Utilization, Exploitation, Development,
the land.
Conservation and Protection of Water
 The change in crop should:
Resources.
o not prejudice the rights of tenants
Note: or leaseholders should there be
Purpose of Inventory: It will help the DAR any
monitor unauthorized conversions of lands  The consent of a simple and absolute
into fishponds and prawn farms. majority of the affected farm workers, if
any, shall first be obtained.
SECTION 65-C. PROTECTION OF MANGROVE
Note:
AREAS
The change of crops to commercial crops
In existing Fishpond Lease Agreements
or high value crops:
(FLAs) and those that will be issued after the
effectivity of this Act.
63
- conversion in the use or nature of the  Against the DAR, the DA,
land the DENR, and the
- Approval of DAR is not required Department of Justice in

their implementation of the
program.
Note:
Purpose of the law in prohibiting

SECTION 66. EXEMPTIONS FROM TAXES
AND FEES OF LAND TRANSFERS lower courts from issuing injunction:
 Transactions under this Act involving a To ensure the unhampered, speedy

transfer of ownership, whether from
and smooth implementation of
natural or juridical persons shall be
exempted from: Agrarian Reform Program.
o taxes arising from capital gains.
o payment of registration fees
o all other taxes and fees for the
conveyance or transfer thereof; SECTION 69. ASSISTANCE OF OTHER
Provided: All arrearages in real property GOVERNMENT ENTITIES

taxes, without penalty or interest, shall be
deductible from the compensation to which  The PARC, in the exercise of its
the owner may be entitled. functions, is hereby authorized to:
1) Call upon the assistance
SECTION 67. FREE REGISTRATION OF 2) Support of other
PATENTS AND TITLES government agencies,
bureaus and offices,
All Registers of Deeds are hereby
including government-
directed: to register, free from payment of
owned or -controlled
all fees and other charges, patents, titles
corporations.
and documents required for the
implementation of the CARP. Note: The provision emphasizes the
utmost importance given by the
SECTION 68. IMMUNITY OF GOVERNMENT
government to the Agrarian Reform
AGENCIES FROM UNDUE INTERFERENCE.
Program
In cases falling within their jurisdiction:
SECTION 70. DISPOSITION OF PRIVATE
No injunction, restraining order, prohibition
AGRICULTURAL LANDS.
or mandamus shall be issued by:
1) the regional trial courts The sale or disposition of agricultural lands

retained by a landowner as a consequence of
2) municipal trial court
Section 6 hereof:
3) municipal circuit trial courts; and
4) metropolitan trial courts
64
 Shall be valid as long as the total foreclosed assets and acquisition as
landholdings that shall be owned by prescribed under Section 13 of this
the transferee thereof inclusive of the Act.
land to be acquired shall not exceed
Note:
the landholding ceilings provided for
in this Act. Bank or Financial Institution is considered as
 Any sale or disposition of agricultural the NEW LANDOWNER if before the deposit
lands after the effectivity of this Act of just compensation:
found to be contrary to the provisions: 1. They are the purchaser in the
shall be null and void. foreclosure sale and the redemption
 Transferees of agricultural lands shall period has already expired in cases
furnish the appropriate Register of where the right of redemption exist.
Deeds and the BARC: 2. They are the purchaser in the
o An affidavit attesting that his foreclosure sale and said foreclosure
total landholdings as a result sale is confirmed by the court in
of the said acquisition do not cases where only equity of
exceed the landholding redemption is provided.
ceiling.  Bank or Financial Institution is considered as
 The Register of Deeds shall not LIEN HOLDER:
register the transfer of any 1. The mortgage debt is not yet due and
agricultural land without the demandable
submission of this sworn statement 2. The mortgage debt is already due and
together with proof of service of a demandable but the bank or financial
copy thereof to the BARC. institution has not foreclosed on the

property
3. Mortgaged has been already
SECTION 71. BANK MORTGAGES foreclosed but the period of

redemption has not yet been expired.
Banks and other financial institutions
4. The foreclosure sale has not yet been
allowed by law to hold mortgage rights or
confirmed by the court in cases
security interests in agricultural lands.
where there is only equity of
o to secure loans and other obligations redemption.
of borrowers, may acquire title to
RIGHTS AND PRIVILEGE OF THE BANK OR
these mortgaged properties,
FINANCIAL INSTITUTION AS NEW
regardless of area, subject to existing
LANDOWNER:
laws on compulsory transfer of
65
1. Receive all notices, advise, 2. Sign all land transfer documents
correspondence and all other required as consequence of the
communications from DAR and LBP. processing and payment of the land
But not limited to: transfer claim such as:
a. Notice of Coverage a) Deed of Assignment
b. Notice of Land Valuation and b) Warranties and undertaking
Acquisition c) Deed of Transfer
c. Letter Requirement for Processing d) Deed of Confirmation of
d. Payment of Claim Coverage and Transfer
2. Transact with DAR or LBP regarding
OBLIGATION OF THE BANK OR FINANCIAL
all aspects of subject land transfer
INSTITUTION AS LIEN-HOLDER:
claim, to the exclusion of all other
persons. 1. Issue a release of mortgage or
3. Be named as the recipient of all cash execute a deed of redemption and
and bond deposit deliver the Owner’s Duplicate Copy of
4. Receive all proceeds of subject land title after the payment of value of lien
transfer, claim, less deductions to 2. Sign all other documents necessary
which the land may be liable to effect the cancellation of the

mortgage.
RIGHTS AND PRIVILEGE OF THE BANK OR
FINANCIAL INSTITUTION AS LIEN-HOLDER: SECTION 72. LEASE, MANAGEMENT,
GROWER OR SERVICE CONTRACTS,
1. Receive payment for the obligation of
MORTGAGES AND OTHER CLAIMS.
the mortgagor from the land transfer
proceeds up to an amount equivalent Lands covered by this Act under lease,
to the landowners compensation management, grower or service contracts,
value. and the like shall be disposed of as follows:
2. Receive notices, advices and all other

(a) Lease, management, grower or
communications pertaining to the
service contracts covering private
obligation of the landowner debtor.
lands may continue under their
OBLIGATION OF THE BANK OR FINANCIAL original terms and conditions until the
INSTITUTION AS NEW LANDOWNER expiration of the same even if such

land has, in the meantime, been
1. Comply with all the requirements for
transferred to qualified beneficiaries.
processing and payment claim such
as surrender Owner’s Duplicate Copy (b) Mortgages and other claims
of Title registered with the Register of Deeds

shall be assumed by the government
66
up to an amount equivalent to the beneficiaries under this Act to avail
landowner's compensation value as themselves of the rights and
provided in this Act. benefits of the Agrarian Reform
Program;
(c) Any conversion by any landowner of

Note:
his/heragricultural land into any non-
When the land was placed under Agrarian agricultural use with intent to avoid
Reform Coverage – any contract of lease, the application of this Act to
management contract, grower or services his/herlandholdings and to
contracts will be respected until their expiry. dispossess his/her bonafide tenant
farmers;
- notwithstanding the fact that the land
(d) The malicious and willful prevention
has already been transferred to the
or obstruction by any person,
beneficiaries
association or entity of the
If the Land subject of Agrarian reform implementation of the CARP;
coverage has been mortgaged: The
(e) The sale, transfer, conveyance or
government will assume the obligation in an
change of the nature of lands
amount not exceeding what the landowner
outside of urban centers and city
would receive as just compensation for the
limits either in whole or in part after
land.
the effectivity of this Act.
Except: after final completion of the

appropriate conversion under
SECTION 73. PROHIBITED ACTS AND
Section 65 of Republic Act No. 6657,
OMISSIONS.
as amended.
The following are prohibited:
The date of the registration of the
(a) The ownership or possession, for
deed of conveyance in the Register
the purpose of circumventing the
of Deeds with respect to titled lands
provisions of this Act, of agricultural
and the date of the issuance of the
lands in excess of the total retention
tax declaration to the transferee of
limits or award ceilings by any
the property with respect to
person, natural or juridical, except
unregistered lands, as the case may
those under collective ownership by
be, shall be conclusive for the
farmer-beneficiaries;
purpose of this Act;
(b) The forcible entry or illegal detainer
(f) The sale, transfer or conveyance by
by persons who are not qualified
a beneficiary of the right to use or
67
any other usufructuary right over the (i) The undue delay in the compliance
land he/she acquired by virtue of with the obligation to certify or
being a beneficiary, in order to attest and/or falsification of the
circumvent the provisions of this certification or attestation as
Act; required under Section 7 of Republic
(g) The unjustified, willful, and Act No. 6657, as amended; and
malicious act by a responsible (j) Any other culpable neglect or willful

officer or officers of the government violations of the provisions of this
through the following: Act.
(1) The denial of notice and/or  In the case of government officials and
reply to landowners; employees, a conviction under this Act is
(2) The deprivation of retention without prejudice to any civil case and/or
rights; appropriate administrative proceedings

under civil service law, rules and
(3) The undue or inordinate
regulations. Any person convicted under
delay in the preparation of claim
this Act shall not be entitled to any
folders; or
benefit provided for in any agrarian reform
(4) Any undue delay, refusal or
law or program.
failure in the payment of just
SECTION 73-A. EXCEPTION
compensation;
(h) The undue delay or unjustified The provisions of Section 73, paragraph (e),
failure of the DAR, the LBP, the to the contrary notwithstanding:
PARC, the PARCCOM, and any

 The sale and/or transfer of
concerned government agency or
agricultural land in cases where such
any government official or employee
sale, transfer or conveyance is made
to submit the required report, data
necessary as a result of a bank's
and/or other official document
foreclosure of the mortgaged land is
involving the implementation of the
hereby permitted.
provisions of this Act, as required by
the parties or the government, Note:
including the House of The sale or transfer of a mortgaged

Representatives and the Senate of agricultural land as a result of bank
the Philippines as well as their foreclosure – not a criminal violation of the
respective committees, and the Comprehensive Agrarian Reform Law of
congressional oversight committee 1988.
created herein;
SECTION 74. PENALTIES.
68
Any person who knowingly or willfully subparagraphs (c), (d), (e), and (i)
violates the provisions of this Act shall be of Republic Act No. 6657, as
punished by: amended.
1) imprisonment of not less than one (1) If the offender is a corporation or

month to not more than three (3) association: the officer responsible therefor
years; or shall be criminally liable.
2) A fine of not less than One thousand SECTION 75. SUPPLETORY APPLICATION OF
pesos (P1,000.00) and not more than EXISTING LEGISLATION.
Fifteen thousand pesos (P15,000.00),
The provisions of: shall have suppletory
3) or both, at the discretion of the court. effect.
 Provided: That the following
1) Republic Act No. 3844 as amended
corresponding penalties shall be
2) Presidential Decree Nos. 27 and 266
imposed for the specific violations
as amended
hereunder:
3) Executive Order Nos. 228 and 229,
(a) Imprisonment of three (3) years
both Series of 1987;
and one (1) day to six (6) years or
4) Other laws not inconsistent with this
a fine of not less than Fifty
Act
thousand pesos (P50,000.00) and
not more than One hundred fifty SECTION 76. REPEALING CLAUSE.
thousand pesos (P150,000.00), or The ff. inconsistent with this Act are hereby
both, at the discretion of the repealed or amended accordingly.
court upon any person who
1) Section 35 of Republic Act No. 3844
violates Section 73,
2) Presidential Decree No. 316
subparagraphs (a), (b), (f), (g), and
3) The last two paragraphs of Section 12
(h) of Republic Act No. 6657, as
of Presidential Decree No. 946
amended; and
4) Presidential Decree No. 1038
(b) Imprisonment of six (6) years and
5) All other laws, decrees, executive
one (1) day to twelve (12) years
orders, rules and regulations,
or a fine of not less than Two
issuances or parts thereof
hundred thousand pesos
(P200,000.00) and not more than SECTION 77. SEPARABILITY CLAUSE.
One million pesos

If, for any reason, any section or provision of
(P1,000,000.00), or both, at the
this Act is declared null and void:
discretion of the court upon any
person who violates Section 73,
69
 no other section, provision, or part
thereof shall be affected and the
same shall remain in full force and
effect.
SECTION 78. EFFECTIVITY CLAUSE.
This Act shall take effect immediately after

publication in at least two (2) national
newspapers of general circulation.
Approved: June 10, 1988
NOTE: CARL of 1988 took effect on June 15,

1988.
70

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farmworkers, to receive a just

CHAPTER I share of the fruits thereof

3) Prior to June 15, 1988, not classified PRIMARY OBJECTIVE OF AGRARIAN

2) The welfare of the landless  A more equitable distribution and

History of Philippine Agrarian Laws:

The Comprehensive Agrarian Reform Law of

1) all public and private agricultural

More specifically, the following lands are

- All alienable and disposable lands of

 Except as otherwise provided in this

LAND OWNER HAS RIGHT TO CHOSE AREA

FAILURE OF LANDOWNER TO EXERCISE 6. Performance of any act constituting

 In no case shall the implementation or  The right of these communities to

SECTION 12. Determination of Lease

(e) the terms of mortgages, lease, and

In determining just compensation:

2) The terms and conditions of such CHAPTER VII

 If a tenant already owns 2 hectares

o Imprescriptible -that cannot rightfully 1. Exercise due diligence in

 IF ACTUAL OCCUPANCY OF THE

 Should the scheduled annual

 The date of registration of the 1. with prior approval of the DAR

 In general: Lands shall be distributed

Note:  In no case shall the compensation

b) potable water and power (10) Assistance in the identification of

(4) Price support and guarantee for all Notes:

SECTION 36. FUNDING FOR SUPPORT

(6) Veterans and Retirees. — In 1. Secretaries of the Departments of

(1) Market prices to be used in the 1. The peculiarities and needs of

 Promote both security of tenure SECTION 46. BARANGAY AGRARIAN

SECTION 50. QUASI-JUDICIAL POWERS OF  Responsible farmer leaders shall be

Frivolous or Dilatory appeal:  Barangay Agrarian Reform Committee is

 Upon expiration of 10 days: The  Review by the Court of Appeals or the

 Just compensation to Landowner: can The DAR, upon application of the

 Change of crops to: Commercial Crops and 1. the beneficiary

4. Lands issued with notice of land concurrence of the Bureau of

approval shall be in accordance 1) The BFAR shall undertake and finish

with a set of guidelines to be an inventory of all government and

drawn up and promulgated by the private fishponds and prawn farms.

DAR and the BFAR. 2) Undertake a program to promote the

o Provided, furthermore, That small- sustainable management and

farmer cooperatives and utilization of prawn farms and

organizations shall be given fishponds.

preference in the award of the  No lease under Section 65-A

Fishpond Lease Agreement (FLAs). hereof may be granted until

hectares of private lands to fishpond and inventory.

of fertilizers, pesticides; and  Be planted to specified

o other chemicals used mangrove species to be

4) Existing regulations governing water Purpose of this Act: To harmonize agrarian

utilization reform with environmental laws.

5) Primarily Presidential Decree No.

Purpose of Inventory: It will help the DAR any

monitor unauthorized conversions of lands  The consent of a simple and absolute

- Approval of DAR is not required Department of Justice in

Purpose of the law in prohibiting

 Transactions under this Act involving a To ensure the unhampered, speedy

Provided: All arrearages in real property GOVERNMENT ENTITIES

1) the regional trial courts The sale or disposition of agricultural lands

4) metropolitan trial courts