AGRARIAN LAW AND SOCIAL LEGISLATION | LDCS

INTRODUCTION CHAPTER 1 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

 AGRARIAN LAW Republic Act No. 6657

 Agrarian
(As amended by RA Nos, 7881, 7905, 8532 and 9700)
- Latin word “ager”which means field. Lexically it means
“relating to land or to the ownership or division of land” AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN REFORM
 Agrarian Law PROGRAM TO PROMOTE SOCIAL JUSTICE AND INDUSTRIALIZATION,
- refers to the distribution of public agricultural lands, large PROVIDING THE MECHANISM FOR IT’S IMPLEMENTATION, AND FOR
estates and regulation of the relationship between the OTHER PURPOSES
landowner and the farmer who works on the land
- it embraces all the laws that govern and regulate the rights SECTION 1 This act shall be known as the Comprehensive Agrarian
TITLE Reform Law of 1998
and relationship over agricultural lands between landowner,
 AGRARIAN LAW
tenants, lessees or agricultural workers
- Embraces all laws that govern and regulate the rights and
 Focus: Agrarian Reform
relationship over agricultural lands between landowners,
 Basic Law: Comprehensive Agrarian Reform Law supplemented
tenants, lessees or agricultural workers
by the Tenant Emancipation Law and the Code of Agrarian
 HISTORY OF PHILIPPINE AGRARIAN LAWS
Reforms
1. Civil code
 Objective: breakup agricultural lands and transform them into
- Spanish Era; governed the relationship between landowners
economic size farms to be owned by the farmers themselves,
and tenants particularly by the Special Provisions for Rural
with the end in view of uplifting their socio-economic status.
Leases
 Founded on the rights of farmers and regular farm workers who
2. Rice Share Tenancy Act
are landless, tow own directly or collectively the lands they till
- American Regime; regulated the relationship between
or, in case of other farm workers to receive a just share in the
landlords and tenants on the rice lands.
fruits thereof.
3. Sugar Tenancy Act
 SOCIAL LEGISLATION
- regulated the relationship between landlords and tenants
- No precise definition
on the lands planted to sugar cane
- So broad that it covers labor laws, agrarian laws, and
a. Commonwealth Act 53 - Recognized the testimony of the
welfare laws
tenant as prima facie of the terms of a tenancy contract
- The emphasis is more on the aspect of general public good
that was not reduced in righting in a language known to him
and social welfare
b. Commonwealth Act 178 - Amend the provisions of Rice
- Enacted pursuant to the Social Justice Clause of the
Share Tenancy Act
Constitution

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c. Commonwealth Act 271 - Amend Act no 4113by extending beneficiaies under PD No. 2) and EO No. 229 (providing the
its application to sugar farmworkers mechanics for its implementation.
d. Commonwealth Act461 - Provide security of tenure to - Proc No. 131 institutiing a comprehensive agrarian reform
agricultural tenants was issued.
e. Commonwealth Act 608 - Amended Commonwealth Act 461 - On June 10, 1988, Comprehensive Agrarian Reform Law of
 After the grant of independence, RA No. 34 was enacted to 1988 was enacted. Thereafter RA Nos. 7781, 8532, 9700
amend Rice Share Tenancy Act by introducing changes in were enacted to amend certain provisions of
crop division Comprehensive Agrarian Reform Law
4. Agricultural Share Tenancy Act  MEANING OF AGRARIAN REFORM
- Repealed all the earlier tenancy laws except the Sugar - means redistribution of lands, regardless of crops or fruits
Tenancy Act. produced, to farmers and regular farmworkers who are
 Subsequently RA No. 2263 amended RA No. 34 landless, irrespective of tenurial arrangement, to include
 RA 1400 was passed setting in the motion the expropriation the totality of factors and support services designed to lift
of all tenanted estates the economic status of the beneficiaries and all other
5. Agricultural Land Reform Code arrangements alternative to the physical redistribution of
- Abolished shared tenancy and instituted the agricultural lands, such as production or profit-sharing, labor
leasehold system. administration, and the distribution of shares of stocks,
6. Code of Agrarian Reforms which will allow beneficiaries to receive a just share of the
- RA 6389 which amended Agricultural Land Reform Code fruits of the lands they work.
7. Tenant Emancipation Law - Other alternatives included
- Provides for the transfer of lands primarily devoted to rice a. Labor administration
and corn to the tenants. b. Profit sharing
a. PD 946 – reorganization of court of agrarian reforms c. Stock distribution
b. PD 1038 – promulgated to strengthen the security of tenure - To confine agrarian reform to land distribution is simply not
of tenants in non-rice or corn agricultural land feasible considering there is not enough agricultural land
 Code of Agrarian Reform was later amended by PD Nos. that can be distributed to every farmer or regular
251, 444, 1039, 1817 farmworker.
8. Comprehensive Agrarian Reform Law of 1988  APPLICABILITY OF THE COMPREHENSIVE AGRARIAN REFORM LAW
- President Corazon Aquino exercising her powers under - Only to agricultural lands. It does not apply to lands
transitory provisions under the 1987 Constitution issued EO classified as residential, commercial, industrial, mineral, or
No. 228 (declaring full land ownership in favor of forest land
 MEANING OF AGRICULTURAL LAND

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-Land devoted to agricultural activities. It contemplates land receive a just share of the fruits thereof. To this end,
that are arable and suitable for farming the State shall encourage and undertake the just
o NATALIA REALTY V. DAR (228 SCRA 279) distribution of all agricultural lands, subject to the
- The underveloped portions of the NATALIA properties are priorities and retention limits set forth in this Act,
not covered by the Comprehensive Agrarian Reform Law having taken into account ecological, developmental,
because they are not agricultural lands. Agricultural lands and equity considerations, and subject to the
payment of just compensation. The State shall
do not include commercial or residential lands. The
respect the right of small landowners, and shall
NATALIA properties ceased to be agricultural lands upon
provide incentives for voluntary land-sharing.
approval of their inclusion in the townsite reservation. The State shall recognize the right of farmers,
 CONSTITUTIONALITY OF THE COMPREHENSIVE AGRARIAN farmworkers and landowners, as well as
REFORM LAW cooperatives and other independent farmers'
- Valid exercise of Police Power (ASL v. Sec of Agrarian organizations, to participate in the planning,
Reform) organization, and management of the program, and
shall provide support to agriculture through
SECTION 2 It is the policy of the State to pursue a appropriate technology and research, and adequate
DECLARATIO Comprehensive Agrarian Reform Program (CARP). financial production, marketing and other support
N OF The welfare of the landless farmers and farmworkers services.
PRINCIPLES will receive the highest consideration to promote The State shall apply the principles of agrarian
AND POLICIES social justice and to move the nation toward sound reform, or stewardship, whenever applicable, in
rural development and industrialization, and the accordance with law, in the disposition or utilization
establishment of owner cultivatorship of economic- of other natural resources, including lands of the
size farms as the basis of Philippine agriculture. public domain, under lease or concession, suitable to
To this end, a more equitable distribution and agriculture, subject to prior rights, homestead rights
ownership of land, with due regard to the rights of of small settlers and the rights of indigenous
landowners to just compensation and to the communities to their ancestral lands.
ecological needs of the nation, shall be undertaken The State may resettle landless farmers and
to provide farmers and farmworkers with the farmworkers in its own agricultural estates, which
opportunity to enhance their dignity and improve shall be distributed to them in the manner provided
the quality of their lives through greater productivity by law.
of agricultural lands. By means of appropriate incentives, the State shall
The agrarian reform program is founded on the right encourage the formation and maintenance of
of farmers and regular farmworkers, who are economic-size family farms to be constituted by
landless, to own directly or collectively the lands individual beneficiaries and small landowners.
they till or, in the case of other farm workers, to

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The State shall protect the rights of subsistence themselves, with the end in view od uplifting their socio-
fishermen, especially of local communities, to the economic status
preferential use of communal marine and fishing - Founded on the right of farmers and regular farm workers
resources, both inland and offshore.t shall provide who are landless, to own directly or collectively the lands
support to such fishermen through appropriate they till or in the case of other farm workers, to receive a
technology and research, adequate financial, just share in the fruits thereof
production and marketing assistance and other
- It does not guarantee improvement in the lives of the
services. The State shall also protect, develop and
agrarian reform beneficiaries – at best, it merely provides
conserve such resources. The protection shall extend
for a possibility of favorable chance of uplifting economic
to offshore fishing grounds of subsistence fishermen
against foreign intrusion. Fishworkers shall receive a status of agrarian reform beneficiaries which may or may
just share from their labor in the utilization of marine not be attained.
and fishing resources.  MEANING OF ECONOMIC FAMILY-SIZE FARM
The State shall be guided by the principles that land - An area of farm land that permits efficient use of labor and
has a social function and land ownership has a social capital resources of the farm family and will produce an
responsibility. Owners of agricultural lands have the income sufficient to provide a modest standard of living to
obligation to cultivate directly or through labor meet a farm family’s needs for food, clothing, shelter, and
administration the lands they own and thereby make education with possible allowance for payments of yearly
the land productive. installments on the land and reasonable reserves to absorb
The State shall provide incentives to landowners to yearly fluctuations in income.
invest the proceeds of the agrarian reform program
to promote industrialization, employment and SECTION 2 (a) Agrarian Reform means redistribution of lands,
privatization of public sector enterprises. Financial DEFINITION regardless of crops or fruits produced, to farmers and
instruments used as payment for lands shall contain regular farmworkers who are landless, irrespective of
features that shall enhance negotiability and tenurial arrangement, to include the totality of factors
acceptability in the marketplace. and support services designed to lift the economic
The State may lease undeveloped lands of the public status of the beneficiaries and all other arrangements
domain to qualified entities for the development of alternative to the physical redistribution of lands, such
capital-intensive farms, and traditional and as production or profit-sharing, labor administration,
pioneering crops especially those for exports subject and the distribution of shares of stocks, which will
to the prior rights of the beneficiaries under this Act. allow beneficiaries to receive a just share of the fruits
 PRIMARY OBJECTIVE OF AGRARIAN REFORM of the lands they work.
- Breakup agricultural lands and transform them into (b) Agriculture, Agricultural Enterprise or Agricultural
economic-size farms to be owned by the farmers Activity means the cultivation of the soil, planting of

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crops, growing of fruit trees, raising of livestock, unproductive by reason of force majeure or any other
poultry or fish, including the harvesting of such farm fortuitous event, provided that prior to such event,
products, and other farm activities and practices such land was previously used for agricultural or other
performed by a farmer in conjunction with such economic purpose.
farming operations done by person whether natural or (f) Farmer refers to a natural person whose primary
juridical. livelihood is cultivation of land or the production of
(c) Agricultural Land refers to land devoted to agricultural crops, either by himself, or primarily with
agricultural activity as defined in this Act and not the assistance of his immediate farm household,
classified as mineral, forest, residential, commercial or whether the land is owned by him, or by another
industrial land. person under a leasehold or share tenancy agreement
(d) Agrarian Dispute refers to any controversy relating or arrangement with the owner thereof.
to tenurial arrangements, whether leasehold, tenancy, (g) Farmworker is a natural person who renders
stewardship or otherwise, over lands devoted to service for value as an employee or laborer in an
agriculture, including disputes concerning agricultural enterprise or farm regardless of whether
farmworkers' associations or representation of his compensation is paid on a daily, weekly, monthly
persons in negotiating, fixing, maintaining, changing, or "pakyaw" basis. The term includes an individual
or seeking to arrange terms or conditions of such whose work has ceased as a consequence of, or in
tenurial arrangements. connection with, a pending agrarian dispute and who
It includes any controversy relating to compensation has not obtained a substantially equivalent and
of lands acquired under this Act and other terms and regular farm employment.
conditions of transfer of ownership from landowners (h) Regular Farmworker is a natural person who is
to farmworkers, tenants and other agrarian reform employed on a permanent basis by an agricultural
beneficiaries, whether the disputants stand in the enterprise or farm.
proximate relation of farm operator and beneficiary, (i) Seasonal Farmworker is a natural person who is
landowner and tenant, or lessor and lessee. employed on a recurrent, periodic or intermittent
(e) Idle or Abandoned Land refers to any agricultural basis by an agricultural enterprise or farm, whether as
land not cultivated, tilled or developed to produce any a permanent or a non-permanent laborer, such as
crop nor devoted to any specific economic purpose "dumaan", "sacada", and the like.
continuously for a period of three (3) years (j) Other Farmworker is a farmworker who does not
immediately prior to the receipt of notice of fall under paragraphs (g), (h) and (i).
acquisition by the government as provided under this (k) Cooperatives shall refer to organizations composed
Act, but does not include land that has become primarily of small agricultural producers, farmers,
permanently or regularly devoted to non-agricultural farmworkers, or other agrarian reform beneficiaries
purposes.t does not include land which has become who voluntarily organize themselves for the purpose

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of pooling land, human, technological, financial or (d) All private lands devoted to or suitable for
other economic resources, and operated on the agriculture regardless of the agricultural products
principle of one member, one vote. A juridical person raised or that can be raised thereon.
may be a member of a cooperative, with the same  LANDS COVERED BY THE AGRARIAN REFORM LAW
rights and duties as a natural person. a. All public and private agricultural lands
 RAISING OF LIVESTOCK, POULTRY OR FISH NOT EMBRACED IN THE b. Other lands of the public domain suitable for agriculture
TERM “AGRICULTURE”  LANDS NOT COVERED BY THE AGRARIAN REFORM LAW
- Luz Farms v. Secretary of Agrarian Reform: the reason is a. Private lands with a total area of 5 hectares
because in livestock, poultry, or swine farming, no land is b. Lands actually, directly, and exclusively used for parks, wildlife,
tilled and no crop is harvested. Land is not primary resource forest reserves, reforestation, fish sanctuaries, and breeding
in raising of livestock, poultry, or even swine. Such do not grounds, watersheds and mangroves
sprout from the land hence they are not fruits of the land. c. Private lands actually directly and exclusively used for prawn
farms and fishponds
SECTION 4 The Comprehensive Agrarian Reform Law of 1989 shall
SCOPE cover, regardless of tenurial arrangement and d. Lands actually directly and exclusively used to be necessary for:
commodity produced, all public and private agricultural a. National defense
lands, as provided in Proclamation No. 131 and b. School sites and campuses
Executive Order No. 229, including other lands of the c. Experimental farm stations operated for educational
public domain suitable for agriculture. purposes
More specifically the following lands are covered by the d. Seeds and seedling research and pilot production center
Comprehensive Agrarian Reform Program: e. Church sites and convents, appurtenant thereto.
(a) All alienable and disposable lands of the public f. Mosque sites and Islamic centers appurtenant thereto
domain devoted to or suitable for agriculture. No g. Communal burial grounds and cemeteries
reclassification of forest or mineral lands to agricultural h. Penal colonies and penal farms actually worked by
lands shall be undertaken after the approval of this Act inmates
until Congress, taking into account ecological,
i. Research and quarantine centers
developmental and equity considerations, shall have
j. All lands with 18% slope and lower except those already
determined by law, the specific limits of the public
domain. developed.
(b) All lands of the public domain in excess of the SECTION 5 The distribution of all lands covered by this Act
specific limits as determined by Congress in the SCHEDULE OF shall be implemented immediately and
preceding paragraph; IMPLEMENTATIO completed within ten (10) years from the
(c) All other lands owned by the Government devoted N effectivity thereof.
to or suitable for agriculture; and  RA 9700

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- Sec 7, extended the implementation of the Comprehensive and shall lose his right to be a beneficiary under this
Agrarian Reform Law particularly the acquisition and Act.n case the tenant chooses to be a beneficiary in
distribution of agricultural lands to June 30 2014. another agricultural land, he loses his right as a
leaseholder to the land retained by the landowner.
SECTION 6 Except as otherwise provided in this Act, no person The tenant must exercise this option within a period
RETENTION may own or retain, directly or indirectly, any public or of one (1) year from the time the landowner manifests
LIMITS private agricultural land, the size of which shall vary his choice of the area for retention.
according to factors governing a viable family-size In all cases, the security of tenure of the farmers or
farm, such as commodity produced, terrain, farmworkers on the land prior to the approval of this
infrastructure, and soil fertility as determined by the Act shall be respected.
Presidential Agrarian Reform Council (PARC) created Upon the effectivity of this Act, any sale, disposition,
hereunder, but in no case shall retention by the lease, management, contract or transfer of possession
landowner exceed five (5) hectares. Three (3) hectares of private lands executed by the original landowner in
may be awarded to each child of the landowner, violation of the Act shall be null and void: provided,
subject to the following qualifications: (1) that he is at however, that those executed prior to this Act shall be
least fifteen (15) years of age; and (2) that he is valid only when registered with the Register of Deeds
actually tilling the land or directly managing the farm: within a period of three (3) months after the
provided, that landowners whose lands have been effectivity of this Act. Thereafter, all Registers of
covered by Presidential Decree No. 27 shall be allowed Deeds shall inform the Department of Agrarian
to keep the areas originally retained by them Reform (DAR) within thirty (30) days of any
thereunder: provided, further, that original transaction involving agricultural lands in excess of
homestead grantees or their direct compulsory heirs five (5) hectares
who still own the original homestead at the time of  RETENTION RIGHTS OF THE LANDOWNER
the approval of this Act shall retain the same areas as - Not more than 5 hectares of his landholding. The retained
long as they continue to cultivate said homestead. area need not be personally cultivated by the landowner –
The right to choose the area to be retained, which
cultivation can be done indirectly through labor
shall be compact or contiguous, shall pertain to the
administration
landowner: provided, however, that in case the area
selected for retention by the landowner is tenanted,  CAN A LANDOWNER WHO HAS ALREADY EXERCISED HIS
the tenant shall have the option to choose whether to RETENTION RIGHTS UNDER PD 27 BE ENTITLED TO RETENTION
remain therein or be a beneficiary in the same or RIGHTS UNDER THE CARL?
another agricultural land with similar or comparable - No. however if the landowner chooses to retain five
features.n case the tenant chooses to remain in the hectares under the CARL, the seven hectares previously
retained area, he shall be considered a leaseholder

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retained by him under PD27 shall be immediately placed - The tenant may choose on whether to remain or be a
under the coverage of CARL beneficiary in the same or another agricultural land with
 CAN SPOUSES RETAIN 5 HECTARESEACH UNDER THE CARL similar or comparable features.
- IT DEPENDS; - The tenant must exercise this option within a period of 1 yr
a. Property regime is conjugal or absolute community – from the time the landowner manifests his choice of area of
the spouses can retain only 5 hectares. retention
b. Property regime is separation of property – spouses can - The law speaks of tenant and not just of any settle on the
retain 5 hectares each a total of 10 hectares. land; the relationship of landlord-tenant must exist
 WHO HAS THE RIGHT TO CHOOSE THE RETENTION AREA? a. The landowner has engaged a person to personally
- Landowner; provided: cultivate an agricultural land
a. Chosen area should be compact or contiguous b. The landowner is compensated in terms of share in the
b. Does not exceed the retention ceiling of 5 hectares, the produce (share tenancy) or in terms of a price certain
landowner’s choice prevails. or ascertainable in produce or in money or in both
- Landowner shall exercise his right within 60 days from (leasehold tenancy)
receipt of notice of coverage; if not, Municipal Agrarian  EFFECT IF TENNAT CHOOSES TO REMAIN IN THE RETAINED AREA
reform will designate retained area for landowner- if he - He will no longer be considered as a tenant but as an
disagrees, he may file a protest with the MARO agricultural lessee and he will no longer be qualify as an
 CAN A LANDOWNER EXERCISE HIS RIGHT TO RETENTION OVER agrarian reform beneficiary
THA LAND WHICH HAS ALREADY BEEN COVERED BY AN - He will be entitled to:
EMANCIPATION PATENT OR CERTIFICATE OF LAND OWNERSHIP a. Peaceful possession and enjoyment of the land
AWARD? b. Manage and work on the land in a manner and method
- Issuance of EP or CLOA to beneficiaries does not absolutely of cultivation and harvest which conform to proven
bar the landowner from retaining the area covered. farm practice
- If the land owner has been deprived of his right of retention c. Mechanize all or any phase of his farm work
he may file for a petition for cancellation of EP or CLA that d. Deal with millers and processors and attend to the
may have issued to the tenants. issuance of quedans and warehouse receipts for the
- Admin Order No. 2 1994, EP or CLOA may be cancelled if the produce due him
land covered is later found to be part of the landowners’ e. Be afforded homelot
retained area f. Be indemnified for the cost and expenses incurred in
 SUPPOSE THE RETENTION AREA CHOSEN IS TENANTED, WHAT the cultivation, planting or harvesting and other
HAPPENS TO THE TENANT? expenses incidental to the improvement of his crop in

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case he surrenders or abandons his landholding for just a. Abandonment or voluntary surrender of the land
cause or ejected therefrom holding by the lessee
g. Buy the agricultural landholding under reasonable b. Absence of successor (surviving spouse, eldest direct
terms and conditions in case the agricultural lessor ascendant by consanguinity or next eldest, descendant
decides to sell the same or descendant in the order of their age in the event of
h. Redeem the landholding at a reasonable price and death or permanent incapacity of lessee)
consideration in case the agricultural lessor sold the - Leasehold relation is not necessarily extinguished by death
same to a third person without his knowledge or incapacity; it continues between the agricultural lessor
- Obligations: and the person who can cultivate the landholding
a. Cultivate and take care of the farm, growing crops, and personally which can be among the ff:\
other improvements on the landholdings as a good a. Survicing spouse
father of a family and perform all the work therein in b. Eldest directly descendant or by consanguinity
accordance with the proven far, practices. c. Next eldest descendant or descendant in the order of
b. Inform the agricultural lessor within a reasonable time their age
of any trespass committed by a third persons without - Not terminated or extinguished by the mere expiration of
prejudice to his direct action against the trespasser the term or period in a leasehold contrat neither by the
c. Tale reasonable care of the work animals and farm transfer of ownership of legal possession of the landholding
implements delivered to him by the agricultural lessor which the transferee becomes the agricultural lessor
and see that they are not used for purposes other than  EFFECT IF TENANT CHOOSES TO BE A BENEFICIARY
those intented or used by another without the - He loses his right to be a lessee of the land retained by the
knowledge and consent of the agricultural lessor. landowner
d. Keep his farm and growing crops attended during the  CHILDREN OF THE LANDOWNER ARE ENTITLED TO 3 HECTARES
work season EACH
e. Notify the agricultural lessor at least 3 days before the - Landowner owns more than 5 hectares of agricultural land,
date of harvesting or whenever applicable of threshing the excess area may be awarded to the children of the
and landowner to the extent of 3 hectares for each child under
f. Pay the lease rental to the agricultural lessor when it ff conditions:
falls due a. Child is at least 15 years old and
 WHAT IS THE TERM OF THE LEASE? b. Child is actually tilling the land or directly managing the
- Once established continues until such relation is farm
extinguished through any of the ff means: - Need not directly or personally till the land – it is enough
that he directly manages the farm

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-Qualified child who owns less than 5 hectares of agricultural EXCEPTIONS municipal government units acquiring private
land is still entitled to an award of his parent’s landholding TO THE agricultural lands by expropriation or other modes of
provided that his total area does not exceed 5 hectares. RETENTION acquisition to be used for actual, direct and exclusive
- Lands awarded cannot be sold, transferred or conveyed LIMITS public purposes, such as roads and bridges, public
within a period of 10 yrs except: markets, school sites, resettlement sites, local
a. Hereditary succession government facilities, public parks and barangay
plazas or squares, consistent with the approved local
b. To the government
comprehensive land use plan, shall not be subject to
c. To the Land Bank of the Philippines
the five (5)-hectare retention limit under this Section
d. Other qualified beneficiaries
and Sections 70 and 73(a) of Republic Act No. 6657, as
- The children or the spouse of the transferor can repurchase amended: Provided, That lands subject to CARP shall
the land from the government or LBP within 2 yrs from the first undergo the land acquisition and distribution
date of transfer process of the program: Provided, further, That when
 RIGHT OF HOMESTEADER V. RIGHT OF TENANTS these lands have been subjected to expropriation, the
- Both the Constitution and the CARL respect the superiority agrarian reform beneficiaries therein shall be paid just
of the rights of the homesteaders over the rights of tenants. compensation
- While the CARL is a remedial measure promulgated  EXPROPRIATION OF PRIVATE AGRICULTURAL LANDS BY LOCAL
pursuant to the social justice precepts of the Constitution, it GOVERNMENT UNITS
cannot be invoked to defeat the very purpose of the - DAR should first subject it to the agrarian reform coverage;
enactment of the Commonwealth Act 141. the land should first be acquired by the national
- Homestead Act is for the welfare and protection of the government through the Department of Agrarian Reform
poor. The law gives a needy citizen a piece of land where he who will pay just compensation to the landowner.
may build a modest house for himself and family and plant - Thereafter, DAR will distribute the land to the agrarian
what is necessary for substinence and for the satisfaction of reform beneficiaries. After distribution, LGU will expropriate
life’s other needs the land and pay the agrarian reform beneficiaries the just
- Owners of lands acquired through homestead or free compensation
parents under CA 141 are entitled to retain the entire are
SECTION Within six (6) months from the effectivity of this Act,
even if t exceeds 5 hectares provided:
6B the DAR shall submit a comprehensive study on the
a. They were cultivating the same at the time of the REVIEW OF land size appropriate for each type of crop to Congress
approval of the CARL and LIMITS OF for a possible review of limits of land sizes provided in
b. They continue to cultivate the same LAND SIZE this Act.
 IMPORT OF THE LAW
SECTION 6A Exception to Retention Limits. — Provincial, city and

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- Sec6-b of CARL is an implied recognition that the uniform only farmers (tenants or lessees) and regular
setting of a 5 hectare limit for all agricultural landholding farmworkers actually tilling the lands, as certified
may not be feasible, considering the economic difference under oath by the Barangay Agrarian Reform Council
for each type of agricultural product. (BARC) and attested under oath by the landowners,
are the qualified beneficiaries. The intended
SECTION 7 he DAR, in coordination with the Presidential Agrarian beneficiary shall state under oath before the judge of
PRIORITIES Reform Council (PARC) shall plan and program the final the city or municipal court that he/she is willing to
acquisition and distribution of all remaining work on the land to make it productive and to assume
unacquired and undistributed agricultural lands from the obligation of paying the amortization for the
the effectivity of this Act until June 30, 2014. Lands compensation of the land and the land taxes thereon;
shall be acquired and distributed as follows: all lands foreclosed by government financial
institutions; all lands acquired by the Presidential
"Phase One: During the five (5)-year extension period Commission on Good Government (PCGG); and all
hereafter all remaining lands above fifty (50) hectares other lands owned by the government devoted to or
shall be covered for purposes of agrarian reform upon suitable for agriculture, which shall be acquired and
the effectivity of this Act. All private agricultural lands distributed immediately upon the effectivity of this
of landowners with aggregate landholdings in excess Act, with the implementation to be completed by June
of fifty (50) hectares which have already been 30, 2012;
subjected to a notice of coverage issued on or before
December 10, 2008; rice and corn lands under "Phase Two: (a) Lands twenty-four (24) hectares up to
Presidential Decree No. 27; all idle or abandoned fifty (50) hectares shall likewise be covered for
lands; all private lands voluntarily offered by the purposes of agrarian reform upon the effectivity of this
owners for agrarian reform: Provided, That with Act. All alienable and disposable public agricultural
respect to voluntary land transfer, only those lands; all arable public agricultural lands under agro-
submitted by June 30, 2009 shall be allowed: Provided, forest, pasture and agricultural leases already
further, That after June 30, 2009, the modes of cultivated and planted to crops in accordance with
acquisition shall be limited to voluntary offer to sell Section 6, Article XIII of the Constitution; all public
and compulsory acquisition: Provided, furthermore, agricultural lands which are to be opened for new
That all previously acquired lands wherein valuation is development and resettlement; and all private
subject to challenge by landowners shall be completed agricultural lands of landowners with aggregate
and finally resolved pursuant to Section 17 of Republic landholdings: above twenty-four (24) hectares up to
Act No. 6657, as amended: Provided, finally, as fifty (50) hectares which have already been subjected
mandated by the Constitution, Republic Act No. 6657, to a notice of coverage issued on or before December
as amended, and Republic Act No. 3844, as amended, 10, 2008, to implement principally the rights of

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farmers and regular farmworkers, who are landless, to obligations of farmland ownership; the distribution of
own directly or collectively the lands they till, which lands to the tillers at the earliest practicable time; the
shall be distributed immediately upon the effectivity of enhancement of agricultural productivity; and the
this Act, with the implementation to be completed by availability of funds and resources to implement and
June 30, 2012; and "(b) All remaining private support the program: Provided, That the PARC shall
agricultural lands of landowners with aggregate design and conduct seminars, symposia, information
landholdings in excess of twenty-four (24) hectares, campaigns, and other similar programs for farmers
regardless as to whether these have been subjected to who are not organized or not covered by any
notices of coverage or not, with the implementation to landholdings. Completion by these farmers of the
begin on July 1, 2012 and to be completed by June 30, aforementioned seminars, symposia, and other similar
2013; programs shall be encouraged in the implementation
of this Act particularly the provisions of this Section.
"Phase Three: All other private agricultural lands "Land acquisition and distribution shall be completed
commencing with large landholdings and proceeding by June 30, 2014 on a province-by-province basis.
to medium and small landholdings under the following
schedule: "(a) Lands of landowners with aggregate In any case, the PARC or the PARC Executive
landholdings above ten (10) hectares up to twenty- Committee (PARC EXCOM), upon recommendation by
four (24) hectares, insofar as the excess hectarage the Provincial Agrarian Reform Coordinating
above ten (10) hectares is concerned, to begin on July Committee (PARCCOM), may declare certain provinces
1, 2012 and to be completed by June 30, 2013; and as priority land reform areas, in which case the
"(b) Lands of landowners with aggregate landholdings acquisition and distribution of private agricultural
from the retention limit up to ten (10) hectares, to lands therein under advanced phases may be
begin on July 1, 2013 and to be completed by June 30, implemented ahead of the above schedules on the
2014; to implement principally the right of farmers condition that prior phases in these provinces have
and regular farmworkers who are landless, to own been completed: Provided, That notwithstanding the
directly or collectively the lands they till. above schedules, phase three (b) shall not be
implemented in a particular province until at least
"The schedule of acquisition and redistribution of all ninety percent (90%) of the provincial balance of that
agricultural lands covered by this program shall be particular province as of January 1, 2009 under Phase
made in accordance with the above order of priority, One, Phase Two (a), Phase Two (b), and Phase Three
which shall be provided in the implementing rules to (a), excluding lands under the jurisdiction of the
be prepared by the PARC, taking into consideration the Department of Environment and Natural Resources
following: the landholdings wherein the farmers are (DENR), have been successfully completed.
organized and understand the meaning and

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"The PARC shall establish guidelines to implement the regularly devoted to non agricultural purposes, land
above priorities and distribution scheme, including the which has become unproductive by reason of force
determination of who are qualified beneficiaries: majeure, or any other fortuitous event provided that
Provided, That an owner-tiller may be a beneficiary of prior to such event, such land was previously used for
the land he/she does not own but is actually agricultural or other economic purposes
cultivating to the extent of the difference between the 4. Private lands voluntarily offered by the owners for
area of the land he/she owns and the award ceiling of
agrarian reform
three (3) hectares: Provided, further, That collective
5. Lands foreclosed by government financial institutions
ownership by the farmer beneficiaries shall be subject
6. Lands acquired by the PCGG
to Section 25 of Republic Act No. 6657, as amended:
Provided, furthermore, That rural women shall be 7. All other lands owned by the government devoted to or
given the opportunity to participate in the suitable for agriculture
development planning and implementation of this Act: b. Land with an area of 24 – 50 hectares to be completed by
Provided, finally, That in no case should the agrarian June 30, 2013
reform beneficiaries' sex, economic, religious, social, 1. All alienable and disposable public agricultural lands
cultural and political attributes adversely affect the 2. All arable public agricultural lands under agroforest,
distribution of lands pasture and agriculture leases already cultivated and
 ACQUISITION AND DISTRIBUTION SCHEME planted to crops in accordance with Section 6 Article XIII
- Scheme for the final acquisition and distribution of all of the Constitution
remaining agricultural lands during the 5 year extension 3. All public agricultural lands which are to be opened for
period upto June 30, 2014 in following order of priority: new development and resettlement
a. Lands with an area of more than 50 hectares to be 4. All public agricultural lands which have already been
completed by June 30, 2012 specifically: subjected to a Notice of Coverage issued on or before
1. Those which have already been subjected to a Notice of December 10, 2008
Coverage on or before December 10, 2008 5. All remaining private agricultural lands regardless as to
2. Rice and corn lands whether they have been subjected to notices of
3. Idle of abandoned lands coverage
 Refers to any agricultural land not cultivated, tilled, or c. Lands with an area of more than 10 – 24 hectares to be
developed to produce any crop nor devoted to any completed by June 30, 2013
specific economic purpose to continuously for a d. Lands from the retention limit up to 20 hectares to be
period of 3 years immediately prior to the receipt of completed by June 30, 2014
notice of acquisition by the government but does not - Only farmers, tenants, lessees and regular farm worker
include land that has become permanently or actually tilling the lands as certified under oath by BARC and

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attested under oath by landowners can be considered hectares in the case of such corporations and
qualified beneficiaries associations, and 500 hectares, in the case of such
- Intended beneficiary shall state under oath before the judge individuals, shall be allowed to continue under
of the city or MTC that he or she is willing to work on the their original terms and conditions but not beyond
land and make it productive and to assume the obligation of August 29, 1992, or their valid termination,
paying the amortizations for the compensation of the land whichever comes sooner, after which, such
agreements shall continue only when confirmed
and taxes thereon.
by the appropriate government agency. Such
SECTION 8 All lands of the public domain leased, held or contracts shall likewise continue even after the
MULTINATIONA possessed by multinational corporations or lands has been transferred to beneficiaries or
L associations, and other lands owned by the awardees thereof, which transfer shall be
CORPORATIONS government or by government-owned or immediately commenced and implemented and
controlled corporations, associations, institutions, completed within the period of three (3) years
or entities, devoted to existing and operational mentioned in the first paragraph hereof.
agri-business or agro-industrial enterprises,
operated by multinational corporations and (c) In no case will such leases and other
associations, shall be programmed for acquisition agreements now being implemented extend
and distribution immediately upon the effectivity beyond August 29, 1992, when all lands subject
of this Act, with the implementation to be hereof shall have been distributed completely to
completed within three (3) years. qualified beneficiaries or awardees.
Lands covered by the paragraph immediately Such agreements can continue thereafter only
preceding, under lease, management, grower or under a new contract between the government or
service contracts, and the like, shall be disposed qualified beneficiaries or awardees, on the one
of as follows: hand, and said enterprises, on the other.
Lands leased, held or possessed by multinational
(a) Lease, management, grower or service corporations, owned by private individuals and
contracts covering such lands covering an private non-governmental corporations,
aggregate area in excess of 1,000 hectares, leased associations, institutions and entities, citizens of
or held by foreign individuals in excess of 500 the Philippines, shall be subject to immediate
hectares are deemed amended to conform with compulsory acquisition and distribution upon the
the limits set forth in Section 3 of Article XII of the expiration of the applicable lease, management,
Constitution. grower or service contract in effect as of August
29, 1987, or otherwise, upon its valid termination,
(b) Contracts covering areas not in excess of 1,000 whichever comes sooner, but not later than after

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ten (10) years following the effectivity of the Act. a willingness and commitment and good-faith
However during the said period of effectivity, the efforts to impart voluntarily such advanced
government shall take steps to acquire these technology will be given preferential treatment
lands for immediate distribution thereafter. where feasible.
In general, lands shall be distributed directly to In no case shall a foreign corporation, association,
the individual worker-beneficiaries.n case it is not entity or individual enjoy any rights or privileges
economically feasible and sound to divide the better than those enjoyed by a domestic
land, then they shall form a workers' cooperative corporation, association, entity or individual.
or association which will deal with the corporation  LANDS POSSESSED BY MULTINATIONAL CORPORATIONS ARE
or business association or any other proper party COVERED BY THE CARL
for the purpose of entering into a lease or - They are also subject to compulsory acquisition and
growers agreement and for all other legitimate distribution. The land shall be distributed directly to the
purposes. Until a new agreement is entered into individual worker – beneficiaries
by and between the workers' cooperative or
- If it is not economically feasible and sound to divide the
association and the corporation or business
land, the individual worker- beneficiary shall for a workers’
association or any other proper party, any
cooperative or association which will ideal with the
agreement existing at the time this Act takes
effect between the former and the previous corporation by a way of lease or grower’s agreement and
landowner shall be respected by both the other legitimate purposes
workers' cooperative or association and the
SECTION 9 For purposes of this Act, ancestral lands of each
corporation, business, association or such other
ANCESTRAL indigenous cultural community shall include, but not
proper party.n no case shall the implementation
LANDS be limited to, lands in the actual, continuous and open
or application of this Act justify or result in the
possession and occupation of the community and its
reduction of status or diminution of any benefits
members: provided, that the Torrens Systems shall be
received or enjoyed by the worker-beneficiaries,
respected.
or in which they may have a vested right, at the
time this Act becomes effective.
The right of these communities to their ancestral lands
The provisions of Section 32 of this Act, with
shall be protected to ensure their economic, social
regard to production and income-sharing shall
and cultural well-being.n line with the principles of
apply to farms operated by multinational
self-determination and autonomy, the systems of land
corporations.
ownership, land use, and the modes of settling land
During the transition period, the new owners shall
disputes of all these communities must be recognized
be assisted in their efforts to learn modern
and respected.
technology in production. Enterprises which show

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Any provision of law to the contrary notwithstanding, EXEMPTIONS wildlife, forest reserves, reforestation, fish
the PARC may suspend the implementation of this Act AND sanctuaries and breeding grounds, watersheds and
with respect to ancestral lands for the purpose of EXCLUSIONS mangroves shall be exempt from the coverage of this
identifying and delineating such lands: provided, that Act.
in the autonomous regions, the respective legislatures
may enact their own laws on ancestral domain subject b) Private lands actually, directly and exclusively used
to the provisions of the Constitution and the principles for prawn farms and fishponds shall be exempt from
enunciated in this Act and other national laws. the coverage of this Act: Provided, That said prawn
 ANCESTRAL LAND DEFINED farms and fishponds have not been distributed and
- Lands of the public domain that have been in open, Certificate of Land Ownership Award (CLOA) issued to
continuous, exclusive and notorious occupation and agrarian reform beneficiaries under the
cultivation by members of National Cultural Communities or Comprehensive Agrarian Reform Program.
through their ancestors under a bona fide claim of
In cases where the fishponds or prawn farms have
acquisition of ownership according to their customs and
been subjected to the Comprehensive Agrarian
traditions for a period of at least 30 years before the date of
Reform Law by voluntary offer to sell, or commercial
approval of PD No. 410
farms deferment or notices of compulsory
- Lands occupied and possessed and utilized by individuals, acquisition, a simple and absolute majority of the
families, and clans who are members of indigenous cultural actual regular workers or tenants must consent to the
communities or indigenous people since time through their exemption within one (1) year from the effectivity of
predecessors in interest except when interrupted by war, this Act When the workers or tenants do not agree to
force majeure or displacement and other voluntary dealings this exemption the fishponds or prawn farms shall be
entered into but not limited to residential lots, rice terraces distributed collectively to the worker-beneficiaries or
or paddies private forests, swidden farms and tree lots. tenants who shall form a cooperative or association
 ANCESTRAL LANDS EXEMPTED FROM CARL to manage the same.
- CARL recognizes and respects the systems of land
ownership, land use, and the modes of settling land In cases where the fishponds or prawn farms have
not been subjected to the Comprehensive Agrarian
disputes of all indigenous cultural communities or
Reform Law the consent of the farm workers shall no
indigenous peoples, in line with the principles of self-
longer be necessary’ however, the provision of
determination and autonomy. Section 32-A hereof on incentives shall apply.”
- In the autonomous regions, the respective legislatures may
enact theor own laws on ancestral domains c) Lands actually, directly and exclusively used and
found to be necessary for national defense, school
SECTION 10 Lands actually, directly and exclusively used for parks,

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sites and campuses, including experimental farm government agencies other than DAR (Natalia Realty v.
stations operated by public or private schools for DAR)
educational purposes, seeds and seedlings research  LANDS WITH ATLEAST 18% SLOPE
and pilot production center, church sites and - To prevent adverse effects on the lowlands and streams
convents appurtenant thereto, mosque sites and resulting from soil erosion.
Islamic centers appurtenant thereto, communal - Al lands of public domain with 18% slope are considered
burial grounds and cemeteries, penal colonies and
permanent forest reserves regardless of the condition and
penal farms actually worked by the inmates,
therefore not alienable or disposable.
government and private research and quarantine
- If such land has been previously classified as alienable or
centers and all lands with eighteen percent (18%)
slope and over, except those already developed, shall disposable but not yet titled, it shall be reverted to the
be exempt from the coverage of this Act category of public forest. However if the land has been
 LAND CLASSIFICATION IN THE TAX DECLARATION IS NOT covered by approved public land application or occupied
CONCLUSIVE openly, continuously, adversely, and publicly for a period of
- Tax declarations are not the sole basis of land classification. notless that 30 yrs as of the effectivity of Foresty Reform
Thus, even if the tax declaration classifies the land as Code it shall remain as alienable or disposable on the
agricultural, such is not irrefutable condition that the land is kept in vegetative state.
- Republic v. Court of Appeals  SCHOOLSITES AND CAMPUSES
o DAR was not correct in denying the application - School is in the best position to determine whether the land
for exemption by the mere fact that the tax is necessary for use as a school site or campuses. The DAR
declaration classified land as agricultural. There has no right to substitute its judgement or discretion for
is no law or jurisprudence that holds that the that of the school
land classification embodied in the tax - CMU v. DARAB
declarations is conclusive and final nor would o As to the determination of when and what
proscribe further inquiry. Furthermore tax lands are found to be necessary for use by the
declarations are not clearly the sole basis of the CMU, the school is in the best position to
classification of a land. resolve and answer the question and pass upon
 LANDS CLASSIFIED AS NON AGRICULTURAL PRIOR TO THE the problem of its needs in relation to its
EFFECTIVITY OF THE CARL ARE NOT COVERED avowed objectives.
- Lands not devoted to agricultural activity are outside the  JURISDICTION TO EXEMPT A PROPERTY FROM CARL COVERAGE
coverage of CARL. These include lands previously converted - Secretary of Agrarian Reform
to non-agricultural uses prior to the effectivity of CARL by
SECTION 11 Commercial farms, which are private agricultural

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COMMERCIA lands devoted to saltbeds, fruit farms, orchards, -Compulsory acquisition and distribution of commercial
L FARMING vegetable and cut-flower farms, and cacao, coffee farms has been deferred for 10 years
and rubber plantations, shall be subject to a. From the effectivity of CARL – for farms already existing
immediate compulsory acquisition and distribution when the law took effect
after ten (10) years from the effectivity of this Act.In b. From the first year of commercial production and
the case of new farms, the ten-year period shall operation – for new farms
begin from the first year of commercial production
 MODE OF ACQUISITION OF COMMERCIAL FARMS
and operation, as determined by the DAR.During the
- May be through
ten-year period, the Government shall initiate steps
a. Voluntary offer to sell – VAS
necessary to acquire these lands, upon payment of
just compensation for the land and the b. Compulsory acquisition – CA
improvements thereon, preferably in favor of c. Direct Payment scheme – DPS
organized cooperatives or associations which shall  MANNER OF DISTRIBUTION OF COMMERCIAL FARMS
thereafter manage the said lands for the workers- - May be distributed individually or collectively.
beneficiaries - Individual beneficiaries are entitled to 3 hectares each or a
minimum of 1 hectare each if the land is not sufficient to
If the DAR determines that the purposes for which accommodate them
this deferment is granted no longer exist, such areas - Following order of priority shall be observed in the
shall automatically be subject to redistribution. distribution
a. Agricultural lessees and share tenants
The provisions of Section 32 of the Act, with regard
b. Regular farm workers
to production-and income-sharing, shall apply to
c. Seasonal farm workers
commercial farms.
d. Other farm workers
 COMMERCIAL FARMS
e. Actual tillers or occupants of public lands
- Lands devoted to:
f. Collectives or cooperatives of the above beneficiaries
a. Saltbeds
g. Other directly working on the land
b. Fruit farms
- If it is not economically feasible and sound to divide the
c. Orchards
land, the beneficiaries will be obliged to for a workers
d. Vegetable and cut-flower farms
cooperative or association
e. Cacao,coffee, and rubber plantations
- Infrastructure facilities and improvements wich are
 IMPLEMENTATION OF AGRARIAN REFORM LAW DEFERRED ON
necessary and beneficial to the operations of the farm may
COMMERCIAL FARMS
be subject to acquisition as determined by the DAR upon
recommendation of the agrarian reform beneficiaries

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 QUALIFICATIONS OF COMMERCIAL FARM BENEFICIARIES venture arrangement, enterprise development and

- Must have the following qualification capability building.
a. Must be 18 yrs olf at the time of the filing of the  TYPES OF AGRIBUSINESS VENTURE ARRANGEMENTS
application as the beneficiary - Under Sec 29 of DAR Administrative Order No. 09 of 1998
b. Must have willingness, aptitude and ability to cultivate commercial farm beneficiaries or their cooperatives may
and make the land productive and enter into the ff:
c. Must have been employed in the commercial farm a. Joint Venture Arrangement - is an agribusiness venture
between June 15, 1998 or upon the expiration of the whereby a company is organized and co-owned by an
deferment investor and the agrarian reform beneficiaries through
- Farm workers who have worked the longest on the land their cooperatives or associations. The investor may
continuously will be given priority provide the management and marketing skills,
 DISQUALIFICATIONS TO BECOME COMMERCIAL FARM technology infrastructure, and capital while the ARBs'
BENEFICIARIES contribution/participation in the joint venture includes
- Farm workers who: labor, the usufructuary rights to the land, and capital,
a. Have retired from service whether optional or infusion, if available
compulsory b. Lease Arrangement - an agribusiness scheme whereby
b. Have resigned from their employment with the farm the ARB's, through their cooperative or farmworkers'
c. Have been dismissed for a cause association, enter into a contract of lease with the
d. Farm workers, lessees or tenants who waive or refuse landowner/investor. The lessee shall have farm control
to be a beneficiary and operations within an agreed period of time but not
e. Have committed a violation of agrarian reform laws to exceed ten (10) years, subject to extension upon
and regulations mutual agreement of both parties.
 FREEDOM OF BENEFICIARIES TO CHOOSE THE TYPE OF c. Contact Growing/Growership Arrangement - an
AGRIBUSINESS agribusiness arrangement whereby the ARBs own the
a. To choose the type of agribusiness venture land and commit, either collectively through their
arrangement that will maintain the economic viability of cooperative or individually, to produce certain crops for
the far, an investor or agribusiness firm that contracts to buy
b. To market their products or enter into marketing the produce at pre-arranged terms
arrangements; and d. Management Contract - an agribusiness arrangement
c. To avail of the services or assistance of individuals, whereby the ARBs, or their cooperative/organization,
associations or non-government organizations in hire the services of the landowner or an investor to
negotiating for the most advantageous agribusiness

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manage and operate the farm in exchange for fixed used for seeds and the cost of harvesting or threshing. If
wages or commission there is no normal harvest then the estimated normal
e. Build-Operate-Transfer Scheme - refers to a contractual harvest during the 3 agricultural years immediately
arrangement entered into pursuant to RA 6957, as preceding the date the leasehold was established
amended, whereby the project proponent undertakes b. Sugar cane lands – 25% of the average normal harvest
the construction, including financing, of a given less the value of the cost of seeds/cane points
infrastructure facility and the operation and harvesting, loading, hauling, and or trucking fee and
maintenance thereof for an agreed period of time, but cost of processing
not to exceed twenty-five (25) years, subject to c. Coconut lands – 25% of the average normal harvest for
extension a specific area for the preceding 3 calendar yrs less the
 RIGHT OF RETENTION OVER COMMERCIAL FARMS value of the production cost
- Granted by Sec 6 of CARL
SECTION 13 Any enterprise adopting the scheme provided for in
CHAPTER III IMPROVEMENT OF TENURIAL AND LABOR RELATIONS PRODUCTIO Section 32 or operating under a production venture,
N SHARING lease, management contract or other similar
SECTION 12 n order to protect and improve the tenurial and PLAN arrangement and any farm covered by Sections 8 and
DETERMINATIO economic status of the farmers in tenanted lands 11 hereof is hereby mandated to execute within
N OF LEASE under the retention limit and lands not yet ninety (90) days from the effectivity of this Act, a
RENTALS acquired under this Act, the DAR is mandated to production-sharing plan, under guidelines prescribed
determine and fix immediately the lease rentals by the appropriate government agency.
thereof in accordance with Section 34 of Republic
Act No. 3844, as amended: provided, that the Nothing herein shall be construed to sanction the
DAR shall immediately and periodically review diminution of any benefits such as salaries, bonuses,
and adjust the rental structure for different crops, leaves and working conditions granted to the
including rice and corn, or different regions in employee-beneficiaries under existing laws,
order to improve progressively the conditions of agreements, and voluntary practice by the enterprise,
the farmer, tenant or lessee nor shall the enterprise and its employee-
 POWER OF DAR TO FIX RENTALS beneficiaries be prevented from entering into any
- Tenant may choose to remain in the portion retained by agreement with terms more favorable to the latter.
the landowner in which case he will no longer be  APPLICABILITY OF THE LAW
considered as a tenant but a lessee a. Farms operating under a production venture, lease
- DAR fixing of rentals management contract or other similar arrangement
a. Land devoted to rice and other crops – 25% of the b. Farms leased or operated by multinational corporations
average normal harvest after deducting the amount

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c. Commercial farms the CARP. These potential beneficiaries with the

assistance of the BARC and the DAR shall provide
CHAPTER IV REGISTRATION the following data:
SECTION 14 Within one hundred eighty (180) days from the
REGISTRATIO effectivity of this Act, all persons, natural or juridical, (a) names and members of their immediate farm
N OF LAND including government entities, that own or claim to household;
OWNERS own agricultural lands, whether in their names or in
the name of others, except those who have already (b) owners or administrators of the lands they work
registered pursuant to Executive Order No. 229, on and the length of tenurial relationship;
who shall be entitled to such incentives as may be
provided for the PARC, shall file a sworn statement (c) location and area of the land they work;
in the proper assessor's office in the form to be
prescribed by the DAR, stating the following (d) crops planted; and
information:
(e) their share in the harvest or amount of rental
(a) the description and area of the property; paid or wages received.
(b) the average gross income from the property for
at least three (3) years; A copy of the registry or list of all potential CARP
(c) the names of all tenants and farmworkers beneficiaries in the barangay shall be posted in the
therein; barangay hall, school or other public buildings in the
(d) the crops planted in the property and the area barangay where it shall be open to inspection by the
covered by each crop as of June 1, 1987; public at all reasonable hours.
(e) the terms of mortgages, lease, and management  PURPOSE OF THE LAW
contracts subsisting as of June 1, 1987, and - Develop of databank of potential and qualified beneficiaries
(f) the latest declared market value of the land as for the effective implementation of the agrarian reform
determined by the city or provincial assessor. program
 PURPOSE OF THE LAW
CHAPTER V LAND ACQUISITION
- Help the DAR identify the lands and their owners for
effective implementation of the agrarian reform program SECTION 16 For purposes of acquisition of private lands, the
PROCEDURE following procedures shall be followed:
SECTION 14 The DAR in coordination with the Barangay Agrarian FOR
REGISTRATIO Reform Committee (BARC) as organized in this Act, ACQUISITION (a) After having identified the land, the landowners
N OF shall register all agricultural lessees, tenants and AND and the beneficiaries, the DAR shall send its notice to
BENEFICIARIES farmworkers who are qualified to be beneficiaries of DISTRIBUTIO acquire the land to the owners thereof, by personal

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N OF PRIVATE delivery or registered mail, and post the same in a corresponding payment or, in case of rejection or no
LANDS conspicuous place in the municipal building and response from the landowner, upon the deposit with
barangay hall of the place where the property is an accessible bank designated by the DAR of the
located. Said notice shall contain the offer of the compensation in cash or in LBP bonds in accordance
DAR to pay a corresponding value in accordance with with this Act, the DAR shall take immediate
the valuation set forth in Sections 17, 18, and other possession of the land and shall request the proper
pertinent provisions hereof. Register of Deeds to issue a Transfer Certificate of
Title (TCT) in the name of the Republic of the
(b) Within thirty (30) days from the date of receipt of Philippines. The DAR shall thereafter proceed with
written notice by personal delivery or registered the redistribution of the land to the qualified
mail, the landowner, his administrator or beneficiaries.
representative shall inform the DAR of his
acceptance or rejection of the offer. (f) Any party who disagrees with the decision may
bring the matter to the court of proper jurisdiction
(c) If the landowner accepts the offer of the DAR, the for final determination of just compensation.
Land Bank of the Philippines (LBP) shall pay the  COMPULSORY ACQUSITION PROCESS
landowner the purchase price of the land within a. Identification by the DAR or the land, landowner and beneficiary
thirty (30) days after he executes and delivers a deed b. Notice by the DAR to the landowner about the compulsory
of transfer in favor of the government and acquisition and the price offer, thru the following means
surrenders the Certificate of Title and other 1. Personal notice or by registered mail
muniments of title.
2. Posting of the notice in a conspicuous place in the
barangay hall and municipal hall where the land is
(d) In case of rejection or failure to reply, the DAR
located
shall conduct summary administrative proceedings
to determine the compensation for the land c. Reply by the land owner about his acceptance or rejection of
requiring the landowner, the LBP and other the offered price:
interested parties to submit evidence as to the just 1. Accepted – landbank will pay the landowner within 30 days
compensation for the land, within fifteen (15) days from the execution and delivery of Deed of Tranfer
from the receipt of the notice. After the expiration of 2. Rejects – DAR will determine the just compensation thru
the above period, the matter is deemed submitted summary administrative proceedings
for decision. The DAR shall decide the case within 3. Disagrees with the decision of DAR – he may bring the
thirty (30) days after it is submitted for decision. matter to the regular courts of justice for final
determination of just compensation
(e) Upon receipt by the landowner of the d. Taking of immediate possession of the land by the DAR

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1. If the landowner receives the corresponding payment or the Bureau of Internal Revenue (BIR), translated
2. Landowner does not respond to the Notice of Acquisition into a basic formula by the DAR shall be
e. Request by the DAR to the ROD to issue a Transfer considered, subject to the final decision of the
Certificate of Title to the Republic of the Philippines proper court. The social and economic benefits
f. Distribution of the land to the qualified beneficiaries contributed by the farmers and the farmworkers
 TWO NOTICES ARE REQUIRED FOR VALIDITY OF IMPLEMENTATION and by the Government to the property as well as
the nonpayment of taxes or loans secured from
a. Notice of Coverage pursuant to DAR Administrative Order No.
any government financing institution on the said
12 seried of 1989
land shall be considered as additional factors to
b. Notice of Acquisition pursuant to Section 16 of the CARL
determine its valuation
 LAND ACQUISITION PROCEDURE SHOULD BE STRICTLY  CONCEPT OF JUST COMPENSATION
CONSTRUED - Full and fair equivalent of the property taken from its owner
- Failure of the DAR or any of its agencies to comply will be by the expropriator.
treated as a violation of constitutional due process and - Not the taker’s gain but the owner’s loss.
should be deemed arbitrary,capricious, whimisical and - The word is “just” to convey the idea that the equivalent to
tainted with grave abuse of discretion be rendered for the property to be taken shall be
 WHEN TITLE OR WONERSHIP OF THE LAND IS TRANSFERRED TO real,substantial, full, and ample
THE STATE - Not only the correct determination of the amount to be
- Only upon full payment of the just compensation. Until the paid to the landowner but also “prompt payment” – full
just compensation is finally determined and fully paid, the payment of the finally adjudged just compensation
title and ownership remains with the landowner.  THE FACTORS USED IN VALUATION OF LANDS
 OPENING OF TRUST ACCOUNT DOES NOT CONSTITUTE PAYMENT a. Capitalized Net Income – CNI; based on the land use and
- Because the law requiresjust compensation to be paid in productivity
cash and Land Bank bonds and not by trust account b. Comparable Sales – CS; based 70% of the BIR zonal value
CHAPTER VI JUST COMPENSATION c. Market Value – MV; based on the ta declarations
 THE BASIC FORMULA WHEN ALL FACTORS ARE PRESENT
SECTION 17 In determining just compensation, the cost of - CNI x 0.60 + CS x 0.30 + MV x 0.10 = Land Value
DETERMINATIO acquisition of the land, the value of the standing  WHEN CNI FACTOR IS NOT PRESENT
N OF JUST crop, the current value of like properties, its - CS x 0.90 + MV x 0.10 = Land Value
COMPENSATION nature, actual use and income, the sworn
 CS FACTOR IS NOT PRESENT
valuation by the owner, the tax declarations, the
- CNI x 0.90 + MV x 0.10 = Land Value
assessment made by government assessors, and
seventy percent (70%) of the zonal valuation of  CS AND CNI FACTORS ARE NOT PRESENT
- MV x 2 = Land Value

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 RECKONING OF VALUATION b. RARAD- initial land valuation of the Land Bank is 10M to
- Value of the property at the time it was taken from the 50M
owner and appropriated by the government c. DARAB – initial valuation of the Land Bank is above 50M
- Time of taking refers to time when the agricultural land and - Non-availability of PARAD, RARAD may conduct preliminary
voluntarily offered by a landowner was approved by the proceedings of land valuation notwithstanding the amount
PARC for agrarian reform coverage through the stock - Non-availability of RARAD, DARAN may conduct
distribution scheme  THE VALUATION SET BY DAR NOT CONCLUSIVE
- If there is undue delay, it should be determined at the time - Land owner may still contest the same in the proper court
of full payment of just compensation such as RTC designated as Special Agrarian Court provided
 PROCEDURE FOR DETERMINATION OF JUST COMPENSATION by Sec 6 Rule XIX of the 2009 DARAB Rules of Procedure
- Commences with Land Bank determining the value of the  COURTS CANNOT DISREGARD THE FORMULA
lands. - The factors for determination of just compensation which
- Using the Land Bank’s valuation the DAR makes an offer to the DAR converted into formula are mandatory and not
the landowner mere guidelines which the RTC may disregard
o Rejects – DAR conducts a summary  CONSENT OF BENEFICIARY NOT NECESSARY IN DETERMINING JUST
administrative proceeding to determine the COMPENSATION
compensation requiring the landowner, - Gleaned form Sec 18 of CARL, the only parties in the
landbank, other interested parties to submit valuation of land are the land owner, the DAR and the Land
evidence Bank
o Disagrees with the decision of the adjudicator –
SECTION 18 The LBP shall compensate the landowner in such
may bring the matter to the RTC designated as a
VALUATION amounts as may be agreed upon by the landowner
Special Agrarian Court for final determination of AND MODE OF and the DAR and the LBP, in accordance with the
just compensation COMPENSATIO criteria provided for in Sections 16 and 17, and
 ROLE OF THE DARAB OR PARAD N other pertinent provisions hereof, or as may be
- Conduct a summary administrative proceeding for the finally determined by the court, as the just
preliminary determination of just compensation in order to compensation for the land.
determine whether the land valuation computations of the The compensation shall be paid on one of the
Land Bank are in accordance with the rules or following modes, at the option of the landowner:
administrative order (1) Cash payment, under the following terms and
- It shall be conducted by: conditions;
a. PARAD – initial land valuation of Land Bank is less than (a) For lands above fifty (50) hectares, insofar as
10M the excess hectarage is concerned.

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— amount of their face value, for any of the

Twenty-five percent (25%) cash, the balance to be following:
paid in government financial instruments
negotiable at any time. (i) Acquisition of land or other real properties of
(b) For lands above twenty-four (24) hectares and the government, including assets under the Asset
up to fifty (50) hectares. Privatization Program and other assets foreclosed
— by government financial institutions in the same
Thirty percent (30%) cash, the balance to be paid province or region where the lands for which the
in government financial instruments negotiable at bonds were paid are situated;
any time.
(c) For lands twenty-four (24) hectares and below. (ii) Acquisition of shares of stock of government-
— owned or -controlled corporations or shares of
Thirty-five percent (35%) cash, the balance to be stocks owned by the government in private
paid in government financial instruments corporations;
negotiable at any time.
(2) Shares of stock in government-owned or (iii) Substitution for surety or bail bonds for the
controlled corporations, LBP preferred shares, provisional release of accused persons, or
physical assets or other qualified investments in performance bonds;
accordance with guidelines set by the PARC;
(3) Tax credits which can be used against any tax (iv) Security for loans with any government
liability; financial institution, provided the proceeds of the
(4) LBP bonds, which shall have the following loans shall be invested in an economic enterprise,
features: preferably in a small-and medium-scale industry,
(a) Market interest rates aligned with 91-day in the same province or region as the land for
treasury bill rates. Ten percent (10%) of the face which the bonds are paid;
value of the bonds shall mature every year from
the date of issuance until the tenth (10th) year: (v) Payment for various taxes and fees to
provided, that should the landowner choose to government; provided, that the use of these
forego the cash portion, whether in full or in part, bonds for these purposes will be limited to a
he shall be paid correspondingly in LBP bonds; certain percentage of the outstanding balance of
the financial instruments: provided, further, that
(b) Transferability and negotiability. Such LBP the PARC shall determine the percentage
bonds may be used by the landowner, his mentioned above;
successors in interest or his assigns, up to the

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(vi) Payment for tuition fees of the immediate - The law says that just compensation shall be paid partly in
family of the original bondholder in government cash and the remainder by means of bonds, government
universities, colleges, trade schools, and other financial instruments, shares of stock in GOCC, tax credits,
institutions; or Land Bank bonds
 FEATURESOF THE LAND BANK BONDS
(vii) Payment for fees of the immediate family of a. 10% of the face value of the bonds shall mature every year from
the original bondholder in government hospitals;
the date of issuance until 10th yr
and
b. Transferable and negotiable
c. Can be used for any of the ff:
(viii) Such other uses as the PARC may from time
to time allow. 1. Acquisition of land or other real properties of the
government including assets under the Asset Privatization
In case of extraordinary inflation, the PARC shall Program and other asset foreclosed by government
take appropriate measures to protect the financial institution in the same province or region where
economy. the lands for which the bonds were paid are situated
 MODE OF PAYMENT 2. Acquisition of land shares of stock of GOCC or shares of
a. Cash and financial instruments of the government, payable as stocks owned by the government in private corporation
follows: 3. Bail bonds for the provisional release of accused persons,
1. Lands above 50h or performance bonds
(a) 25% in cash 4. Security for loans with government financial institution
(b) 75% in government financial instruments provided that the proceeds of the loans shall be invested in
2. Lands above 24h-50h an economic enterprise
(a) 30% in cash 5. Payment for various taxes and fees to government
(b) 70% in government financial instruments 6. Payment for tuition fees of the immediate family of the
3. Lands 24h and below original bondholder in government universities, colleges,
(a) 35% in cash trade schools, and other institutions
(b) 65% in government financial instruments 7. Payment for fees of immediate family of the original
b. Shares of stocks in GOCC preferred shares of Land Bank, bondholder in government hospitals
physical assets or other qualified investments
SECTION 19 Landowners, other than banks and other financial
c. Tax credits which can be used against tax liabilities
INCENTIVES institutions, who voluntarily offer their lands for sale
d. Land Bank bonds which shall mature every year until the 10 th yr
FOR shall be entitled to an additional five percent (5%)
 LAND OWNER CANNOT INSIST IN CASH PAYMENT ONLY
VOLUNTARY cash payment.
OFFERS FOR

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SALE DAR
 DOCUMENTARY REQUIREMENTS FOR VOLUNTARY OFFERS FOR  VOLUNTARY LAND TRANSFER NO LONGER ALLOWED
SALE - Sec 7 of the CARL as amended by RA 9700, allowed
- Attach the ff documents to their written offer: voluntary land transfer up to June 30, 2009 only. After such
a. Title or proof of ownership if untitled the modes of acquisition are limited to voluntary offer to
b. Tax declaration sell and compulsory acquisition
c. Approved survey plan
SECTION 21 Direct payments in cash or in kind may be by the
- If the land owner failed to submit, land will be subject to
PAYMENT OF farmer-beneficiary to the landowner under terms
compulsory acquisition.
COMPENSATIO to be mutually agreed upon by both parties, which
SECTION 20 Landowners of agricultural lands subject to acquisition N OF shall be binding upon them, upon registration with
VOLUNTARY under this Act may enter into a voluntary BENEFICIARIES the approval by the DAR. Said approval shall be
LAND arrangement for direct transfer of their lands to UNDER considered given, unless notice of disapproval is
TRANSFER qualified beneficiaries subject to the following VOLUNTARY received by the farmer-beneficiary within thirty
guidelines: LAND TRANSFER (30) days from the date of registration.

(a) All notices for voluntary land transfer must be In the event they cannot agree on the price of
submitted to the DAR within the first year of the land, the procedure for compulsory acquisition as
implementation of the CARP. Negotiations between provided in Section 16 shall apply. The LBP shall
the landowners and qualified beneficiaries covering extend financing to the beneficiaries for purposes
any voluntary land transfer which remain unresolved of acquiring the land.
after one (1) year shall not be recognized and such  MODE OF PAYMENT IN VOLUNTARY LAND TRANSFER
land shall instead be acquired by the government and - Farmer – beneficiary pays the agreed price of the land
transferred pursuant to this Act. directly to the landowner
(b) The terms and conditions of such transfer shall not
be less favorable to the transferee than those of the CHAPTER VII LAND REDISTRIBUTION
government's standing offer to purchase from the SECTION 22 The lands covered by the CARP shall be distributed
landowner and to resell to the beneficiaries, if such QUALIFIED as much as possible to landless residents of the
offers have been made and are fully known to both BENEFICIARIE same barangay, or in the absence thereof, landless
parties. S residents of the same municipality in the following
order of priority:
(c) The voluntary agreement shall include sanctions
for non-compliance by either party and shall be duly (a) agricultural lessees and share tenants;
recorded and its implementation monitored by the

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(b) regular farmworkers; beneficiaries to the PARC.

(c) seasonal farmworkers; If, due to the landowner's retention rights or to the
number of tenants, lessees, or workers on the land,
(d) other farmworkers; there is not enough land to accommodate any or
some of them, they may be granted ownership of
(e) actual tillers or occupants of public lands; other lands available for distribution under this Act,
at the option of the beneficiaries.
(f) collectives or cooperatives of the above
beneficiaries; and Farmers already in place and those not
accommodated in the distribution of privately-
(g) others directly working on the land. owned lands will be given preferential rights in the
distribution of lands from the public domain
Provided, however, that the children of landowners  WHO ARE ELIGIBLE TO BECOME AGRARIAN REFORM
who are qualified under Section 6 of this Act shall be BENEFICIARIES
given preference in the distribution of the land of - A landless resident is a farmer or tiller who owns less than
their parents: and provided, further, that actual 3h of land who could refer to any of the ff
tenant-tillers in the landholdings shall not be ejected a. Agricultural lessees and share tenants
or removed therefrom.
b. Regular farm workers
c. Seasonal farm workers
Beneficiaries under Presidential Decree No. 27 who
d. Other farm workers
have culpably sold, disposed of, or abandoned their
land are disqualified to become beneficiaries under e. Actual tillers or occupants of public lands
this Program. f. Collectives or cooperatives of the above beneficiaries
g. Other directly working on the land
A basic qualification of a beneficiary shall be his  QUALIFICATIONS OF AN AGRARIAN REFORM BENEFICIARY
willingness, aptitude, and ability to cultivate and a. Filipino Citizen
make the land as productive as possible. The DAR b. Resident of barangay or municipality where the landholding is
shall adopt a system of monitoring the record or located
performance of each beneficiary, so that any c. At least 15 years old at the time of identification, screening and
beneficiary guilty of negligence or misuse of the land selection
or any support extended to him shall forfeit his right d. Willing, able, and equipped with aptitude to cultivate and make
to continue as such beneficiary. The DAR shall
the land productive
submit periodic reports on the performance of the

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 SPECIAL QUALIFICATION FOR FARM WORKERS IN COMMERCIAL l. Converted agricultural lands to non-agricultural use without
FARMS OF PLANTATIONS prior approval of the DAR
- Can qualify if they were already employed as of June 15, m. Finally adjudged guilty od forcible entry or unlawful detainer
1998 in the landholding covered by the CARL over the property
 MANAGERIAL FARM WORKERS NOT QUALIFIED TO BECOME n. Violated agrarian reform laws and rregulations
BENEFICIARIES
SECTION A landholding of a landowner shall be distributed first
- As of June 15, 1988 are not qualified to become
22-A to qualified beneficiaries under Section 22,
beneficiaries. However, farm workers promoted to
ORDER OF subparagraphs (a) and (b) of that same landholding up
managerial or supervisory position after they were PRIORITIES to a maximum of three (3) hectares each. Only when
identified, screened, and selected will remain as qualified these beneficiaries have all received three (3) hectares
agrarian reform beneficiaries. each, shall the remaining portion of the landholding, if
 WHO ARE DISQUALIFIED TO BECOME AGRARIAN REFORM any, be distributed to other beneficiaries under
BENEFICIARIES Section 22, subparagraphs (c), (d), (e), (f), and (g)
a. Those who do not meet the basic qualifications  ORDER OF DISTRIBUTION
b. Waived their right to become an agrarian reform beneficiary in - Children of the land owner enjoy first preference
exchange for compensation, provided that the waiver has not - After the children, it will be distributed to the ff
been questioned in the proper government entity a. Agricultural lessees and share tenants
c. Not paid an aggregate of 3 annual amortizations b. Regular farm workers
d. Failed to exercise right of redemption/repurchase within 2 years c. Seasonal farm workers
resulting in the foreclosure of mortgage by the LBP of a d. Other farm workers
previously awarded land e. Actual tillers or occupants of public lands
e. Refused to pay 3 annual amortizations for land acquired f. Collectives or cooperatives of the above beneficiaries
through voluntary land transfer or direct payment scheme, g. Other directly working on the land
resulting in the repossession by the landowner.
f. Have been dismissed for a cause SECTION 23 No qualified beneficiary may own more the 3
DISTRIBUTIO hectares of agricultural land
g. Obtained substantially equivalent employment
N LIMIT
h. Retired or voluntarily resigned from their employment
 MAXIMUM AREA THAT CAN BE OWNED OR AWARDED TO
i. Misused the land or diverted the financial support services
BENEFICIARIES
extended by the Government
- If the particular landholding is not enough to meet the 3h
j. Misrepresented facts in their basic qualifications
award ceiling for each agricultural lessee or tenant the area
k. Sold, disposed, or abandoned the lands awarded to them by the
government

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to be distributed to them will be based in actual size of SECTION 24 The rights and responsibilities of the beneficiaries
tillage by each lessee or tenant AWARD TO shall commence from their receipt of a duly
- If the landholding is more than enough to accommodate the BENEFICIARIE registered emancipation patent or certificate of land
3h limit for agricultural lessee or tenant, the excess will be S ownership award and their actual physical
distributed to agrarian beneficiaries in the ff order of possession of the awarded land. Such award shall be
priority completed in not more than one hundred eighty
(180) days from the date of registration of the title
a. Seasonal farm workers
in the name of the Republic of the Philippines:
b. Other farm workers
Provided, That the emancipation patents, the
c. Actual tillers or occupants of public lands
certificates of land ownership award, and other
d. Collectives or cooperatives of the above beneficiaries titles issued under any agrarian reform program
- Not economically feasible and sound to divide the excess shall be indefeasible and imprescriptible after one
land to the seasonal farm workers, the ff criteria for (1) year from its registration with the Office of the
prioritization shall be observed: Registry of Deeds, subject to the conditions,
a. Willingness, aptitude, and abilility to cultivate and make limitations and qualifications of this Act, the
the land productive property registration decree, and other pertinent
b. Physical capacity laws. The emancipation patents or the certificates of
c. Length of service land ownership award being titles brought under
- If the seasonal or other farm workers equally meet the the operation of the torrens system, are conferred
foregoing criteria, priority will be given to those who have with the same indefeasibility and security afforded
to all titles under the said system, as provided for by
continuously worked on the subject landholding. The other
Presidential Decree No. 1529, as amended by
farm workers who cannot be accommodated will be put in a
Republic Act No. 6732.
wait list of potential beneficiaries in other landholdings
- Beneficiaries opt for collective ownership, the total area "It is the ministerial duty of the Registry of Deeds to
must be coincide with the total number of members or co register the title of the land in the name of the
owners multiplied by 3h limit Republic of the Philippines, after the Land Bank of
 FACTORS TO BE CONSIDERED IN DETERMINING THE SIZE OF LAND the Philippines (LBP) has certified that the necessary
TO BE AWARDED deposit in the name of the landowner constituting
a. Type of crop full payment in cash or in bond with due notice to
b. Type of soil the landowner and the registration of the certificate
c. Weather patterns of land ownership award issued to the beneficiaries,
d. Other pertinent factors critical for the success of the and to cancel previous titles pertaining thereto.
beneficiaries

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"Identified and qualified agrarian reform - CLOA and other title titles issued under agrarian reform
beneficiaries, based on Section 22 of Republic Act become indefeasible and imprescriptible after one yr from
No. 6657, as, amended, shall have usufructuary its registration with the ROD subject to conditions,
rights over the awarded land as soon as the DAR limitations, and qualifications under CARL
takes possession of such land, and such right shall  CANCELLATION OF CLOA’S
not be diminished even pending the awarding of the - Within the exclusive and original jurisdiction of the
emancipation patent or the certificate of land
Secretary of DAR
ownership award.
 GROUNDS FOR CANCELLATION
- Abandonment of the land
"All cases involving the cancellation of registered
emancipation patents, certificates of land ownership - Neglect or misuse of land
award, and other titles issued under any agrarian - Failure to pay 3 annual amortization
reform program are within the exclusive and original - Misuse or diversion of financial and support services
jurisdiction of the Secretary of the DAR - Sale, transfer or conveyance of the right to use the land
 TRANSFER OF OWNERSHIP TO THE BEENFICIARIES NOT - Illegal conversion of the land
AUTOMATIC  WHEN WILL THE RIGHTS AND OBLIGATIONS OF BENEFICIARIES
- Compulsory acquisition does not mean automatic transfer COMMENCE?
of ownership of the land to the tenant, lessee, or farm - From their receipt of a duly registered CLOA and their actual
worker. physical possession of the awarded land
- Title and ownership over the land can be transferred to the - Pending issuance of CLOA, the identified and qualified
beneficiaries only upon full payment of the just agrarian reform beneficiaries have usufructuary rights over
compensation of the land owner the awarded land which the DAR has taken possession
 WHEN DOES THE DAR ISSUE A CERTIFICATE OF LAND OWNERSHIP  OBLIGATIONS OF AGRARIAN REFORM BENEFICIARIES
AWARD (CLOA) a. Exercise due diligence in the use, civilization, and
- Only upon full payment of amortizations by the farmer- maintenance of the land, including improvements, and
beneficiary. b. Pay the Land Bank 30 annual amortizations with 6% interest
- CLOA in turn becomes the basis for the issuance in his name per annum
of an original transfer certificate of title - Amortization will start 1 year from the date of registration
 CLOA INDEFEASIBLE of the CLOA. However if actual occupancy of the land takes
- CLOA’s are title brought under the operation of Torrens place after registration of the CLOA, the 1 year period shall
system hence they are conferred with the same be reckoned from constructive occupation of the land by
indefeasibility and security as provided for by PD 1529 the beneficiary
amended by RA6732

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SECTION 25 Beneficiaries shall be awarded an area not other form of collective organization and for the
AWARD exceeding three (3) hectares, which may cover a issuance of collective ownership titles: Provided,
CEILING FOR contiguous tract of land or several parcels of land That the total area that may be awarded shall not
BENEFICIARIE cumulated up to the prescribed award limits. The exceed the total number of co-owners or members
S determination of the size of the land for distribution of the cooperative or collective organization
shall consider crop type, ,soil type, weather patterns multiplied by the award limit above prescribed,
and other pertinent variables or factors which are except in meritorious cases as determined by the
deemed critical for the success of the beneficiaries. PARC.

"For purposes of this Act, a landless beneficiary is "The conditions for the issuance of collective titles
one who owns less than three (3) hectares of are as follows:
agricultural land.
"(a) The current farm management system of the
"Whenever appropriate, the DAR shall encourage land covered by CARP will not be appropriate for
the agrarian reform beneficiaries to form or join individual farming of farm parcels;
farmers' cooperatives for purposes of affiliating with
existing cooperative banks in their respective "(b) The farm labor system is specialized, where the
provinces or localities, as well as forming blocs of farmworkers are organized by functions and not by
agrarian reform beneficiaries, corporations, and specific parcels such as spraying, weeding, packing
partnerships and joining other farmers' collective and other similar functions;
organizations, including irrigators' associations:
Provided, That the agrarian reform beneficiaries "(c) The potential beneficiaries are currently not
shall be assured of corresponding shares in the farming individual parcels hut collectively work on
corporation, seats in the board of directors, and an large contiguous areas; and
equitable share in the profit.
"(d) The farm consists of multiple crops being
"In general, the land awarded to a farmer- farmed in an integrated manner or includes non-
beneficiary should be in the form of an individual crop production areas that are necessary for the
title, covering one (1)contiguous tract or several viability of farm operations, such as packing plants,
parcels of land cumulated up to a maximum of three storage areas, dikes, and other similar facilities that
(3) hectares. cannot be subdivided or assigned to individual
farmers.
"The beneficiaries may opt for collective ownership,
such as co-workers or farmers cooperative or some "For idle and abandoned lands or underdeveloped

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agricultural lands to be covered by CARP, collective  INDIVIDUAL TITLES FOR EVERY BENEFICIARY
ownership shall be allowed only if the beneficiaries - GEN RULE: land should be awarded to the individual farmer
opt for it and there is a clear development plan that beneficiary and should be covered by an individual title
would require collective farming or integrated farm - If the beneficiaries opt for collective ownership, title may be
operations exhibiting the conditions described issued in the name of the co-owners or the collective
above. Otherwise, the land awarded to a farmer- organization
beneficiary should be in the form of a n individual
- If the title is issued in the name of the collective
title, covering one (1) contiguous tract or several
organization, names of the beneficiaries must be listed in
parcels of land cumulated up to a maximum of three
the same certificate of land ownership award award.
(3) hectares.
 CONDITIONS FOR THE ISSUANCE OF COLLECTIVE TITLES
"In case of collective ownership, title to the property a. The farm management system of the land covered its not
shall be issued in the name of the co- owners or the appropriate for individual farming
cooperative or collective organization as the case b. Farm labor system is specialized; farmworkers are organized by
may be. If the certificates of land ownership award functions and not by specific parcels such as spraying, weeding,
are given to cooperatives then the names of the packing and other similar functions
beneficiaries must also be listed in the same c. Beneficiaries are currently not farming individual parcels but
certificate of land ownership award. collectively work on large contiguous areas and
d. Farm consist of multiple crops being farmed in an integrated
"With regard to existing collective certificates of manner or includes non-crop production areas that are
land ownership award, the DAR should immediately
necessary for the viability of farm operations.
undertake the parcelization of said certificates of
 TITLE MUST INDICATE THAT IT IS AN EP OR CLOA
land ownership award, particularly those that do not
exhibit the conditions for collective ownership - Subsequent transfer must also indicate that it is an
outlined above. The DAR shall conduct a review and emancipation patent or CLOA
redocumentation of all the collective certificates of SECTION 26 Lands awarded pursuant to this Act shall be paid for
land ownership award. The DAR shall prepare a PAYMENT BY by the beneficiaries to the LBP in thirty (30) annual
prioritized list of certificates of land ownership BENEFICIARIE amortizations at six percent (6%) interest per
award to be parcelized. The parcelization shall S annum. The annual amortization shall start one (1)
commence immediately upon approval of this Act year from the date of the certificate of land
and shall not exceed a period of three (3) years. ownership award registration. However, if the
Only those existing certificates of land ownership occupancy took place after the certificate of land
award that are collectively farmed or are operated ownership award registration, the amortization shall
in an integrated manner shall remain as collective start one (1) year from actual occupancy. The

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payments for the first three (3) years after the - After the 5th yr, the interest rate and/or the principal
award shall be at reduced amounts as established by obligation may be reduced by the Land Bank to make the
the PARC: Provided, That the first five (5) annual repayment affordable:
payments may not be more than five percent (5%) a. Due to failure of production – scheduled annual
of the value of the annual gross production as payments exceed 10% of the annual gross production
established by the DAR. Should the scheduled b. Failure to produce not due to the beneficiary’s fault
annual payments after the fifth (5th) year exceed
 EFFECT OF FAILURE TO PAY THE AMORTIZATION
ten percent (10%) of the annual gross production
- Fails to pay 3 annual amortizations, Land Bank can forfeit
and the failure to produce accordingly is not due to
the landholding and award it to other qualified beneficiaries
the beneficiary's fault, the LBP shall reduce the
interest rate and/or reduce the principal obligation - Beneficiary whose land has been foreclosed or forfeited will
to make the repayment affordable. be permanently disqualified from becoming a beneficiary

SECTION 27 Lands acquired by beneficiaries under this Act or

"The LBP shall have a lien by way of mortgage on the
TRANSFERABILIT other agrarian reform laws shall not be sold,
land awarded to the beneficiary; and this mortgage
Y OF AWARDED transferred or conveyed except through
may be foreclosed by the LBP for non-payment of an
LANDS hereditary succession, or to the government, or
aggregate of three (3) annual amortizations. The LBP
to the LBP, or to other qualified beneficiaries
shall advise the DAR of such proceedings and the
through the DAR for a period of ten (10) years:
latter shall subsequently award the forfeited
Provided, however, That the children or the
landholding to other qualified beneficiaries. A
spouse of the transferor shall have a right to
beneficiary whose land, as provided herein, has
repurchase the land from the government or LBP
been foreclosed shall thereafter be permanently
within a period of two (2) years. Due notice of
disqualified from becoming a beneficiary under this
the availability of the land shall be given by the
Act
LBP to the BARC of the barangay where the land
 SCHEDULE OF PAYMENT
is situated. The PARCCOM, as herein provided,
- Payable to the Land Bank by the beneficiaries in 30 annual shall, in turn, be given due notice thereof by the
amortizations with 6% interest per annum. BARC.
- One year starts from:
a. Date of registration of the COLA "The title of the land awarded under the agrarian
b. Date of actual occupancy, if the occupancy took place reform must indicate that it is an emancipation
after the registration of the CLOA patent or a certificate of land ownership award
 BASIS OF AMORTIZATION and the subsequent transfer title must also
- 5% of the annual gross production as established by the indicate that it is an emancipation patent or a
DAR certificate of land ownership award.

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 AGRARIAN LAW AND SOCIAL LEGISLATION | LDCS

 EFFECT OF SALE OR TRANFER TO THE GOVERNMENT OR THE LAND

"If the land has not yet been fully paid by the BANK
beneficiary, the rights to the land may be - The children or the spouse of the transferor can repurchase
transferred or conveyed, with prior approval of the land within 2 years from the date of transfer
the DAR, to any heir of the beneficiary or to any  CAN A BENEFICIARY WHO HAS NOT FULLY PAID THE
other beneficiary who, as a condition for such AMORTIZATIONS SELL THE LAND TO ANOTHER?
transfer or conveyance, shall cultivate the land
- If has not been fully paid, he may sell or transfer under the
himself/herself. Failing compliance herewith, the
ff conditions
land shall be transferred to the LBP which shall
a. Approval of the DAR must be first be obtained
give due notice of the availability of the land in
the manner specified in the immediately b. Land should be sold only to an heir of the beneficiary or
preceding paragraph. to any other qualified beneficiary
c. Transferee must undertake to cultivate the land himself
"In the event of such transfer to the LBP, the otherwise Land Bank will take the land for proper
latter shall compensate the beneficiary in one disposition
lump sump for the amounts the latter has already  CAN THE BEENFICIARY LEASE THE LAND TO ANOTHER PERSON
paid, together with the value of improvements - What the la prohibits is the transfer of ownership not
he/she has made on the land transfer of possession. Therefor e, beneficiary can lease the
 SALE OR TRANSFER OF AWARDED LANDS PROHIBITED land to another person provided that the lease is also for
- Within a period od 10 yrs except: agricultural purpose.
a. Hereditary succession - If non-agricultural purposes, beneficiary must seek approval
b. Government of the DAR
c. Land Bank of the Philippines
d. Other qualified beneficiaries SECTION 28 The landowner shall retain his share of any standing
 HEREDITARY SUCCESSION STANDING crops unharvested at the time the DAR shall take
- Succession by intestate succession or by will to the CROPS AT possession of the land under Section 16 of the Act,
THE TIME OF and shall be given a reasonable time to harvest the
compulsory heirs – it does not pertain to succession to
ACQUISITION same
other persons.
 RIGHT OVER STANDING CROPS ATE THE TIME OF ACQUSITION
- Prohibitions stems form the policy of the government to
- Landowner retains his right over crops not yet harvested at
develop generations of farmers to attain its avowed goal to
the time the DAR took possession of the land.
have an adequate and sustained agricultural production
with certitude.

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