Agrarian laws Reviewer

8/12/2019 Agrarian laws Reviewer

1/51

DAR - Legal Information System

No date supplied Handbook for CARP Implementors

No date supplied

ACKNOWLEDGMENT

BARIE would like to thank the following offices for their valuable inputs: Lega l Affairs Office, Bureau of Land Acquisition and Distribution, Special Concerns Office, Policy andStrategic Research Service, and the Land Use Conversion Committee. Likewise, BARIE would like to thank Mr. Gil R. Tuparan for writing portions of the initial draft.

FOREWORD

The Dep artment of Agrarian Reform is cogniza nt of the role that various DAR Frontliners, like the MAROs and ARPTs play in the implementation of the Comprehensive

Agrarian Reform Program at the grassroots leve l. As frontliners, they a re the first contact of the prog ram's various clientele. It is from them that the agrarian reform beneficiaries ,

the landowners, and the general public ge t their first impressions o f DAR as a social develop ment agency.

In the course of implementing the program, these field implementors are often faced with issues and problems due to varied understanding and interpretation of the CARP

law and its implementing guidelines and issuances.

To add ress this, BARIE, in coordina tion with other DAR units, produced in 1993 the first edition of the Handbook for CARP Implementors. This resource material which was

distributed to all MAROs and o ther field pe rsonnel was developed to e nhance the knowledge, attitude and commitment of DAR frontliners in implementing the program.

Since last year, however, new implementing guidelines as well as amendments to the existing Administrative Orders were issued. This prompted BARIE to produce the

Second Edition of the Handbook for DAR Frontliners to ensure that the resource material is well updated and responsive to the needs o f the field implementors. The Handboo k

which is also presented in a q uestion-and-answer format, contains an updated discussion of the va rious provisions of the program and its implementing mechanisms,

procedures and guidelines.

It is hoped that this Handbook will be a valuable reference tool in transforming our field pe rsonnel into successful and multi-faceted implementors of the ag rarian reform

program.

(SGD.) ERNESTO D. GARILAO

Secretary

HANDBOOK FOR CARP IMPLEMENTORS

TABLE OF CONTENTS

Chapter 1 : AGRARIAN REFORM CONCEPTS AND PRINCIPLES

1.1 Meaning of Agrarian Reform

1.2 Agrarian Reform Issues:

Land Tenure Improvements vs. Support Services

1.3 Big Farms vs. Small Farms

1.4 Public vs. Private Lands

1.5 Agrarian Reform: Counter-Insurgency Tool?

Chapter 2 : COMPREHENSIVE AGRARIAN REFORM PROG RAM

Chapter 3 : CARP COVERAGE

3.1 CARP Scop e

3.2 Implementation Schedule

Chapter 4 : EXEMPTIONS AND EXCLUSIONS

4.1 Exclusions

4.1.1. Poultry, Livestock and Swine Raising

4.2 Exemptions

4.3 Procedures Gove rning Exemption of Lands

Under Sec. 10, RA 6657

4.4 Procedures for Issuance of Exemption Clearance

Based on DOJ Opinion No. 44

Chapter 5 : LAND ACQUISITION

5.1 Requisities in Land Acquis ition

5.2 Mode s of Acquisi tion

5.2.1 Compulso ry Acquisi tion

5.2.2 Voluntary Offer to Sell

5.2.3 Voluntary Land Transfer/Direct Payment Scheme

5.3 Executive Orde r No. 407 As Amended

5.4 Procedures in Land Acquisition

5.5 Prioritiza tion of Lands for Coverage

5.6 Reconstitution of Title

5.7 Untitled Private Prope rties


2/51

5.8 Field Investigation

Chapter 6 : AGRARIAN REFORM BENEFICIARIES

6.1 Qualifica tion of Beneficia ries

6.2 Orde r of Priority

6.3 Farmworker Beneficia ries

6.4 Screening of Beneficia ries

Chapter 7 : LANDOWNER'S RETENTION AND AWARD TO CHILDREN

7.1 Retention Limit

7.2 Land Ownership Ceiling

7.3 Qualifica tions for the Exercise of the Right of Retention

7.4 Award to Landowner's Children

7.5 Selection of Retained Area

7.6 Procedures for the Exercise of the Right of Retention and Award to Qualified Children

7.7 When to Exercise the Right of Retention

7.8 Obligations of Landowners and Limits to the Disposition of the Retained Areas

7.9 Tenants in Retained Areas

7.10 Retention Under PD 27

7.11 Homestea d Lands

Chapter 8 : LAND SURVEY

Chapter 9 : LAND VALUATION AND LANDOWNER'S COMPENSATION

9.1 Just Compensation

9.2 Land Valuation Factors

9.3 New Land Valuation Formula

9.4 Summary Administrative Proceedings

9.5 Concerned Parties' Involveme nt in the Land Valuation Process

9.6 Modes of Compensation

9.7 Land Bank Bonds

9.8 PD 27 Lands

9.9 EO 407 Lands

9.10 Mt. Pinatubo- Affected Areas

Chapter 10 : LAND DISTRIBUTION

10.1 Basic Principles in Land Distribution

10.2 Award Ceiling

10.3 Land Distribution Process

10.4 Individual vs. Collec tive Distribution

10.5 Rights and Obligations of Beneficia ries

Chapter 11 : PAYMENT BY BENEFICIARIES

11.1 Payment Under RA 6657

11.2 Payment in OLT Lands

11.3 Payment Under VLT/DPS

11.4 Payment in Lahar- Affected Areas

Chapter 12 : SUPPORT SERVICES

12.1 Suppo rt Services to Landowners

12.2 Suppo rt Services to Agrarian Reform Beneficia ries

Chapter 13 : AGRICULTURAL LEASEHOLD

13.1 Laws and Issuances on Leasehold

13.2 Tenancy Relationship

13.3 Rights and Responsibilities of Lessee

13.4 Rights and Responsibilities of Lessor

13.5 Lease Rental

13.6 Fixing the Lease Rental

13.7 Other Related Laws and Issuances

Chapter 14 : PRODUCTION AND PROFIT SHARING

14.1 Coverage


3/51

14.2 DAR's Authority

14.3 Main Features

14.4 Role of the MARO

Chapter 15 : COMMERCIAL FARM DEFERMENT

15.1 Meaning of Commercia l Farms and Commercia l Farm Deferment

15.2 Rationale for Deferment

15.3 Requirements

15.4 Deferment Period

15.5 DAR's Role During Deferment Period

Chapter 16 : LAND USE CONVERSION

16.1 Definition

16.2 DAR's Stand on Conversio n

16.3 DAR's Lega l Mandate

16.4 DAR's Role in Conversio n

16.5 Mechanics of Land Use Conversion Application, Approval and Monitoring

16.6 LGU's Authority to Reclassify

Chapter 17 : LAND TRANSACTION

17.1 Laws and Issuances Gove rning Agricultural Land Transaction

17.2 Land Transactions Involving Ago- Tourism Development

17.3 Land Transactions After 15 June 1988

17.4 Right of Pre- emption

17.5 Right of Redemption

17.6 Valid Transactions

17.7 Invalid Transa ctions

Chapter 18 : PUBLIC LANDS

18.1 Public Alienable and Disposa ble Lands

18.2 Integra ted Socia l Forestry Program

18.3 Settlement Areas

18.4 Public Agricultural Lands Turned Ove r by the National Livelihood Suppo rt Fund

18.5 Lands of the Public Domain Covered by Cancelled or Expired

Pasture Lease Agreements and Timber License Agreements Per EO 407

18.6 Lands of the Public Domain Covered by Cancelled or Expired Fishpond Lease Agreements

Chapter 19 : LANDED ESTATES

Chapter 20 : BARANGAY AGRARIAN REFORM COMMITTEE (BARC)

20.1 Laws and Issuances on BARC

20.2 Functions of the BARC

20.3 BARC Composition

20.4 BARC Officers

20.5 Formation of BARC

20.6 Mediation and Conciliation

Chapter 21 : DAR ADJUDICATION BOARD (DARAB)

21.1 DARAB Jurisdic tion

HANDBOOK FOR CARP IMPLEMENTORS

CHAPTER 1

AGRARIAN REFORM CONCEPTS AND PRINCIPLES

1.1 MEANING OF AGRARIAN REFORM

What is Agrarian Reform?

Section 3 of RA 6657has defined ag rarian reform as:

"the redistribution of lands, regardless of crops or fruits produced, to farmers and regular farmworkers who are landless, irrespective of tenurial arrangement,

to include the totality of factors and support services designed to lift the economic status of the beneficiaries,

and all other arrangements alternative to the physical redistribution of lands, such as production or profit-sharing, labor administration and the distribution of shares of

stock, which will allow beneficiaries to receive a just share of the fruits of the land they work." (Section 3, RA 6657)
http://www.lis.dar.gov.ph/home/document_view/226


4/51

Basically, agrarian reform is land reform the transfer of control and ownership of agricultural land to the actual tillers plus a package of support services: economic

and physical infrastructure support se rvices (ECOPISS), (e.g., credit, extension, irrigation, roads and b ridges, marketing facilities), and human resource and institutional

development or social infrastructure building and strengthening (SIBS).

What is being "Reformed" in Agrarian Reform?

Agrarian reform seeks to correct numerous de fects in the country's agrarian structure. Foremost among these is the concentration of land ownership in only a few people ,

such that the huge majority of the population does not have acce ss to land.

Acco rding to the 1980 Census of Agriculture, farms less than three hectares in size predominate in the Philipp ines, representing nearly 70% of the 3.4 million total number of

farms. However, they cover only 30% of the country's 9.7 million hectares total farm area. In contrast, farms with areas of more than 10 hectares are very few, constituting only

3.5% of the number of farms. Yet they cover 26% of the farm area.

So what's wrong with that?

The concentration of the ownership of lands in the hands of a very few means that the majority is deprived of the opportunity to use land as a bas ic production resource.

The failure to access land results in unemployment, low incomes, low productivity, poo r purchasing power, and sluggish rural economies.

A more equitab le distribution of land ownership, on the other hand, promo tes a more equitable distribution of income which, in turn, promotes grea ter economic activity.

More producers and income earners, require more services and goods which other sectors of the economy p roduce. The increase in domes tic demand and production

results in b roadbased, sustainable economic growth. And that's o nly the economic side o f it.

With improved standards of living, greater peop le participation in the community's affairs is expected. This will lead to a more dynamic and genuine democracy.

1.2 AGRARIAN REFORM ISSUES:LAND TENURE IMPROVEMENT vs.SUPPORT SERVICES DELIVERY

Land redistribution is so costly, why don't we just use the money for credit, extension, infrastructure, post harvest facilities , etc., for greater productivity?

Such a strategy would benefit those who own or control the land. It is not surprising, therefore, that more often than not, it is a strategy propounded b y those who alrea dy

own land.

For the benefits of agricultural investments to seep down and reach the lower economic strata, inequitable land ownership structure will have to be dismantled first.

Broadening the land ownership base makes agricultural development more quickly and ea sily felt by the majority.

1.3 AGRARIAN REFORM ISSUES:BIG FARMS vs.SMALL FARMS

Aren't small farms less efficient and less productive? Instead of breaking up the lands, shouldn't we consolidate them into plantations to achieve economies of scale?

The argument that large farms are more efficient than small farms is usually invoked by those who own export and cash crop plantations as an excuse to exc lude their

landholdings from agrarian reform. The issue can b e answered by examining whether economies of sca le do exist. A study made on coconut and other tree crops did not

show any increasing yield per hectare as farm size increases. In the case of sugar, another study has shown that average production cost per hectare, in fact, tends to be

higher for larger farms. (Adriano, Quisumbing, and Hayami, Toward an Alternative Land Reform Paradigm, 1990).

Furthermore, if breaking up the lands would not be economically viab le, then this need not be done. Agrarian reform can be undertaken by breaking up the land ownership

pattern but farming can b e done co llectively.

1.4 AGRARIAN REFORM ISSUES:PUBLIC vs.PRIVATE LANDS


5/51

Why don't we just distribute public and government-owned lands? Why are we covering the private farms which are productive?

Productive private lands are covered under agrarian reform for various reasons. These include:

a. Public and government-o wned lands already have occupants and claimants. The sheer extent of landlessness makes coverage of private lands inevitable;

b. One of the pilla rs of agra rian reform is the principle that the tiller of the land has the primacy of the right to own it;

c. It is in productive private lands, particularly where the necessa ry investments have been made, where the beneficiary has greatest chances of success.

1.5 AGRARIAN REFORM:COUNTER-INSURGENCY TOOL?

Will agrarian reform cure all of the country's ills?

No, although it is a step in the right direc tion. The country has too many problems. But attempts to solve them will not yield sustainable results unless the root cause is

addressed inequitable distribution of resources. Since the Philippines is b asically an ag ricultural country, land is the most important resource. By addressing the p roblem of

inequitable distribution of the land, agrarian reform is a major step towards reso lving the country's p roblems.

Is agrarian reform an anti-insurgency tool?

No, agrarian reform is not being carried out to solve the insurgency problem. However, agrarian reform answers the clamor for social justice and the upliftment of the socio -

economic status of the landless. It provides a peaceful means for radical social change and liberation from poverty.

CHAPTER 2

COMPREHENSIVE AGRARIAN REFORM PROGRAM

What is the constitutional mandate for agrarian reform?

Agrarian reform derives its mandate from bas ic principles enshrined in the Constitution. The Philipp ine Constitutions of 1935, 1973 and 1987 all attest to this.

The 1935 Constitutionmandated a p olicy of social justice to insure the well-being and economic security of the people.

The 1973 Constitutionprovided that "The State shall formulate and implement an agrarian reform program aimed at emancipating the tenant from the bondage of the soil."

The 1987 Constitutioncontains more specific provisions on ag rarian reform.

Article II, Decla ration of Principles and State Polic ies, Section 21 "The State shall promote comprehensive rural development and agrarian reform."

Article XII, National Economy and Patrimony, Section 21 "The State shall promote industrialization and full employment based on sound agricultural development and agrarian

reform, . . ."

Article XIII, Soc ial Justice and Human Rights, Section 4 "The State shall, by law, undertake an agrarian reform program founded on the right of farmers and regular farmworkers,

who are landless, to own directly or collectively the lands they till or in the case of other farmworkers, to receive a just share of the fruits thereof ."

"The State shall encourage and undertake the just dist ribution of all agricultural lands, subject to such priorities and reasonable retention limits as the Congress may prescribe,
http://www.lis.dar.gov.ph/home/document_view/195http://www.lis.dar.gov.ph/home/document_view/9108http://www.lis.dar.gov.ph/home/document_view/9109


6/51

taking into account ecological, development or equity considerations, and subject to the payment of just compensation.

"In determining the retention limits, the State shall respect the right of small landowners.The State shall f urther provide incentives for voluntary landsharing."

Article XIII, Section 6

"The State shall apply the principles of agrarian reform, whenever applicable in accordance with law."

What presidential issuances and legislations provide the legal mandate for the Comprehensive Agrarian Reform Program?

Various ad ministrations, from the Commonwealth to the Philippine Republic have issued d ecrees and passed legislations on agrarian reform.

Under the prev ious adminis tration, Proclamation No. 131and Executive Order No. 229, both dated 22 July 1987 were issued when then President Corazon C. Aquino still

exercised legislative powers. These instituted the Comprehensive Agrarian Reform Program (CARP) and prov ided the mechanism for its implementation.

Republic Act No

.6657:An Act Instit uting a Comprehensive Agrarian Reform Program to Promote Social Justice and Industrialization, Providing the Mechanisms for its Implementation and/or other

Purposes, was subse quently passed by Congress, signed into law on 10 June 1988 and became e ffective on 15 June 1988. This is now known as the Comprehensive Agrarian

Reform Law (CARL) of 1988. (By tradition, the anniversary of CARP is commemorated on this date).

CHAPTER 3

CARP COVERAGE

3.1 CARP SCOPE

What is the scope of CARP?

The ownership or control of abo ut 10.3 million hectares 1of ag ricultural land, representing about one-third of the total land a rea o f the Philippines shall be transferred over

a ten-ye ar period to an estimated 3.9 million beneficiaries.

What lands are covered by CARP?

The CARP covers, regardless of tenurial arrangement and commodity produced, all public and private lands devoted to or suitable for agriculture and not classified as

mineral, forest, residential, commercial or industrial' land.

The two criteria for coverage, therefore , are (1) suitab ility of the land for agriculture; and (2) its class ification.

Specifically, the following lands are covered by CARP:

a. all alienable and disposable lands of the public domain devo ted to or suitable to agriculture;

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

c. all other lands owned by the government devoted to or suitable to agriculture; and

d. all private lands devoted to or suitable to agriculture regardless of the agricultural products raised or that can be raised therein. (Section 4 RA 6657)

Other major issuances on CARP are:

3.2 IMPLEMENTATION SCHEDULE

When are these lands covered?

All lands within the scope of CARP have been cove red by the program beginning 15 June 1988, the date of CARP's effectivity.

However, in consideration of the capacity of the Gove rnment to implement the program, the acquisition and distribution of agricultural lands covered by the program have

been prioritized as follows:
http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/3421http://www.lis.dar.gov.ph/home/document_view/6950


7/51

Phase I

This started immedia tely upon effectivity of the law and is prog rammed to be comple ted within four years (1988-1992)

* rice and corn lands which are covered by PD 27;

* idle or abandoned;

* voluntarily offered;

* foreclosed by government financial institutions (GFIs);

* acquired by the Presidential Commission on Good Government (PCGG); and

* owned by the Government

Phase II

This also started in 1988 and is programmed to be co mpleted in four years (1988-1992).

* all public agricultural lands which are to be opened for new development and resettlement; and

* private agricultural lands with areas above 50 hectares in so far as the excess over 50 hectares is concerned

Phase III-A

This started on the fourth year and is programmed completed within three years (1992-1995)

* priva te agricultural lands with areas from 24 to 50 hectares, in so far as the excess over the retention limit.

Phase III-B

This is programmed to start on the sixth year and to be completed within four years (1994-1998)

* priva te agricultural lands with areas abo ve the retention limit up to 24 hectares

Public lands and other lands owned by the gove rnment and gove rnment-owned or controlled corpo rations which are leased and op erated by multinational corporations or

associa tions were programmed for immedia te acquis ition and distribution right after the effectivity of the law for comp letion within three years (1988-1991). (Sections 6 and 8, RA

6657)

Does the order of priority mean that all areas under Phase II must first be acquired and distributed before those in Phase III can be covered?

Strictly speaking, no. Starting 15 June 1994, Phase III-B lands can already be acquired and distributed eve n if not all Phase II lands have be en covered. However, given

DAR's backlog in cove ring even those p rivate agricultural lands 50 hectares and ab ove, and the backlog in vo luntary offer to sell, for practical purposes, p riority should be

given to the comp letion of backlog in the earlier phases.

Given such phasing, how many hectares can now (1994) be acquired if a landowner's property has an area of?

a. 40 has > 40 less 5 35 has.

b. 70 has > 70 less 5 65 has.

c. 20 has > 20 less 5 15 has.

*

* if there is a backlog, unless voluntarily offered, it is advised that this land not be covered yet. Instead, give priority to the completion of the backlog.

This example considers only the landowner's retention right but does not take into account the award to qualified children.

The opinion of some that in the case of (a) in the example, only 16 hectares can be compulsorily acquired (40 less 24 has.) has been taken by DAR to have no legal

basis. This has be en clarified under Memorandum Circular No. 4, Series of 1993.

CHAPTER 4

EXEMPTIONS AND EXCLUSIONS

4.1. EXCLUSIONS

What lands are not covered by CARP?

The following lands a re not covered by CARP:

a. those which are not suitable for agriculture, and those which are classified as mineral, forest, residential, commercial or industrial land;

b. those which have been classified and approved as non-ag ricultural prior to 15 June 1988 as ruled under Department of Justice Opinion No. 44, Series of 1990;
http://www.lis.dar.gov.ph/home/document_view/5445http://www.lis.dar.gov.ph/home/document_view/1935http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/3795


8/51

c. those which are exempt pursuant to Sec. 10, RA 6657;

d. those which are devoted to poultry, swine, or lives tock raising as of June 15, 1988 pursuant to the Supreme Court ruling on Luz Farms vs. The Honorable Secretary of

Agrarian Reform (G.R. No. 86889, 4 December 1990); and

e. those which are retained by the landowner (not covered insofar as land acquisition and distribution but covered with respect to other provisions, particularly leasehold).

4.1.1 POULTRY, LIVESTOCK AND SWINE RAISING

What was the basis of t he Supreme Court in ruling that poultry, swine and livestock farms are not covered by CARP?

The Supreme Court checked the intent of the framers of the Constitution and determined that poultry, swine, and livestock farms are not included in the scope of the agrarian

reform program constitutionally mandated to be implemented.

Are all agricultural lands devoted to livestock, poultry and swine raising now automatically excluded from

CARP coverage?

No. To qualify for exclusion, the following requirements must be met:

1. The land or portions thereof must have been exclusively, directly and actually used for

livestock, po ultry and swine raising as of 15 June 1988.

2. The farm devo ted to the above purposes must satisfy the animal/land ratio, as well as

animal/infrastructure ratio as provided for in Section III-B ofAdministrative O rder No. 09, Series o f 1993

entitled "Rules and Regulations G overning the Exclusion of Agricultural Lands Used for Livestock,

Poultry and Swine Raising from the Coverage of CARP".

Can a landowner now convert his crop land to a poultry farm and then apply for exclusion from CARP?

No, as s tated inAO 03- 93, the land must already be devo ted to livestock, poultry and swine raising as of 15 June 1988. Nevertheless, the landowner who wishes to convert his

crop land for this purpose must apply for conversion, the processing o f which shall be gove rned byAO Nos . 1and 2, Series of 1990. Among other requirements, there should

be:

1. the conse nt of agra rian reform bene ficiaries and/o r their waiver of rights; and,

2. certification from the Regional Director of the Department of Agriculture that the poultry, lives tock or swine project is of grea ter eco nomic value than the present

agricultural use.

Conversion of the crop land without the benefit of conversion approva l will be construed as a n intent to avoid applica tion of RA 6657and shall be considered as invalid and

illegal. The land will be covered under CARP without prejudice to the filing o f charges against the landowner.

Suppose a landowner has been granted exclusion from CARP for his landholding devoted to livestock raising but subsequently, he/she stopped its operations and went into c rop

production, can the land still be subject t o CARP?

Yes, the area or portion no longer used for livestock raising purpose shall automatically revert to the ca tegory of agricultural land and shall be covered by CARP.

What are the procedures in applying for exclusion of a landholding devoted to livestock , poultry and swine raising?

1. Landowner files the app lication for exc lusion with the DAR Provincia l Agrarian Reform Office, toge ther with the documentary requirements;

2. The PARO, with the ass istance of the BARC, the MARO, the Municipa l Livestock Inspector, and a livestock/poultry and swine specia list of the DA shall conduct a field

investigation, and prepare report of findings and recommendations for submission to the Regional D irector.

3. Regional Director undertakes final review and evaluation of the application and issues the Order of Exclusion or Denial.

4.2 EXEMPTIONS

What lands are exempted from CARP coverage?

The following are exempted from the cove rage o f CARP:

a. Lands actually, directly, and exclusively used and found to be necessary for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds,

watersheds and mangroves, national defense, school s ites and campuses including exp erimental farm stations operated by public or private schools for educational

purposes, seeds and seedlings research and pilot production centers, church sites and convents appurtenant thereto, mosque sites and Islamic centers appurtenant thereto,

communal burial grounds and cemeteries, pe nal colonies a nd penal farms actually worked by the inmates, and government and private research and quarantine centers; and

b. Lands with eighteen percent (18%) slope and over, excep t those already developed as of 15 June 1988. (Sec. 10, RA 6657)

What is the scope of the exemption that may be granted?

The exemption means that the subject parcel o f land will not be acquired and distributed under the CARP for as long as the reasons for the exemp tion continue to exist.

However, the other components of the program, e .g., leasehold and the Integrated Soc ial Forestry Program may be implemented where applicab le.

A state college claims that although part of its property is cultivated by farmers, that area cannot be covered under CARP because it is reserved for the future expansion of the

campus. Is that parcel exempted?

The area reserved for future expansion appea rs not to be actually and directly used for a campus. Unfortunately, in the case o f the Central Mindanao University vs. DARAB

(CA-G.R. No. 19174 dated 23 August 1990), the Supreme Court ruled that the University has the prerogative to determine whether a particular part of the school property is

necessary for educational purposes . Therefore, in this case , that parcel is exempted.

A landowner claims that his agricultural land is exempted because he has recently developed it into a pilot production center for hybrid seeds. Is the landholding exempted?

No. The four conditions must have been all present as of 15 June 1988.

A landowner was granted exemption because his agricultural land was found to be a qualified private research

center for corn breeding. Subsequently, he gave up his breeding operations and went into commercial

production of feed grains. May the landholding be covered?

Yes. For the exemption to continue, the reason for which the exemption was granted must continue to

exist.

A parcel of land cultivated by farmers is found to be within a forest reserve. May it be immediately covered by

DAR under CARP?

No. Coverage while possible, will have to wait until Congress, taking into account ecological,

deve lopmental and equity considerations, shall have determined by law the specific limits of the public

domain. Thereafter, a reclassification of the said areas as alienable and disposable land will also have to

be done. (Sec. 4, RA 6657)
http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/3686http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/378http://www.lis.dar.gov.ph/home/document_view/377http://www.lis.dar.gov.ph/home/document_view/387http://www.lis.dar.gov.ph/home/document_view/7062http://www.lis.dar.gov.ph/home/document_view/3617http://www.lis.dar.gov.ph/home/document_view/226


9/51

Why are lands with 18% s lope and undeveloped exempt from CARP coverage?

The exemption is spec ifically mentioned in Section 10, RA 6657and is based on the Forestry Code which provides that such lands should not be disposed of and developed

for agriculture because this type of land is highly suscep tible to soil e rosion. The principle is deba ted in the light of cultural practices which could make the p reservation of the

ecolog ical ba lance in such areas feasible. However, until and unless the laws are changed, such lands are not cove red by CARP.

Since lands 18% slope or over if developed are not exempt from CARP, can DAR subject these lands to

acquisition and distribution?

Such lands can be allocated to q ualified occupants but the manner of acquisition and distribution depends

on the following:

1. If classified as forest land, they shall be allocated by the DENR under the Integrated Social

Forestry Program;

2. If classified as alienable and disposable, they shall be allocated by DENR and DAR pursuant to

the provisions of the Public Land Act and the Joint DAR-DENR AO No. 2, Series of 1988; and

3. If private agricultural land, then, they shall be acquired in accordance with the provisions of RA

6657.

What Administrative Orders govern the exemption of lands from CARP?

1. DAR Administrative Order No. 10, Series of 1994 , "Amending AO No. 13, Series of 1990 entitled Rules and Procedures Governing Exemption of Lands from CARP

Coverage under Section 10 of RA No. 6657, to Authorize all Regional Directors to Hear and D ecide App lications for Exemption for All Land Sizes"

2. DAR Administrative Order No. 06, Series of 1994 , "Guidelines for the Issuance of Exemption Clearances ba sed on Sec. 3 (c) RA 6657 and the depa rtment of Justice

(DOJ) Opinion No. 44 Series of 1990"

4.3 PROCEDURES GOVERNING EXEMPTION OF LANDS UNDER SEC. 10, RA 6657

What are the procedures followed in securing exemption of lands under Sec. 10 of RA 6657from CARP coverage?

The person/s or representative/s owning, administering or managing the landholdings may file for exemption of the lands from CARP coverage at the Municipal AgrarianReform Office.

1. The MARO shall prepare an Appli cation for Land Exemption Folde r (ALEF) which contains the

following documents:

* written applica tion

* ownership documents and other muniments of title

* evidence to support application

* copy of proclamation, topographic map, sketch map, area deve lopment plan, affidavit,

certification from government agency, etc.

2. MARO conducts investigation of the land with the ass istance of the BARC and prepares report of

findings and recommendations and forwards them together with the ALEF to the Provincial Agrarian

Reform Officer.

3. The PARO reviews and evaluates the ALEF and prepares comments, findings and

recommendations. If all documents are in order, forwards them to the Regional Director.

4. The RD reviews and evaluates the ALEF and the findings and recommendations of the PARO and the MARO. If documents are in order, issues an Order of Approval or

Order of Denial. This applies to ap plications for exemption for all land siz es.

5. The RD forwards the Orde r to the PARO for distribution to the contending parties and counsel, if any, copy furnished the Office of the Secre tary, Undersecretary for

Field Operations, Legal Affairs Office and the Manage ment Information Service within 15 days from the release of the O rder. The Order becomes final 15 days from receipt of

the same, unless an appeal is made to the DAR Secretary.

6. In case of denial of the application, DAR shall cause the acquisition and distribution of the property.

What is the recourse of a party who disagrees with the decision of the Regional Director?

Any pa rty who disagrees with the RD's decis ion may file a written motion for reconsideration within 15 days from receipt of the Order. The RD shall then rule on the motion for

reconsideration. Should the motion for reconsideration be deemed , the aggrieved party could ap peal to the DAR Secretary within the ba lance of the 15 day pe riod. The

Secretary shall render a de cision within 30 days after receipt of the appeal.

4.4 PROCEDURES FOR ISSUANCE OF EXEMPTION CLEARANCE BASED ON DOJ OPINION NO. 44

What are the procedures for the issuance of exemption clearances based on DOJ Opinion No. 44?

1. The landowner or his duly authorized representative files the application for exemption with the Regional Office of the DAR where the land is located. The applica tion

should be accompanied by the following documents:

a. duly notarized Specia l Power of Attorney, if the app licant is not the landowner himself;

b. certified true cop ies of the list of the land which is the subject of the app lication;

c. current tax declaration covering the property;

d. location or vicinity map;

e. certification from the Dep utized Zoning Administration that the land has bee n reclassified to residential, industrial or commercial use prior to 15 June 1988;

f. certification from the HLRB that the pertinent zoning ordinance has been app roved by the Board prior to 15 June 1988;

g. certification from the National Irrigation Administration that the land is not covered byAO No. 20, Series o f 1992, i.e., that the area is not irrigated, nor scheduled for

irrigation rehabilitation nor irrigable with firm funding commitment, and

h. proof of payment of disturbance compensation, if the area is presently being occupied by farmers, or waiver/undertaking by the occupants that they will vacate the

area whenever required.

2. The Regional Office conducts joint investiga tion with the duly authorized represe ntatives of the DAR prov incial and municipal offices that have jurisdiction ove r the

property, and a report prepared within thirty (30) days from the filing o f completed a pplication.

The joint investigation report shall contain information on:
http://www.lis.dar.gov.ph/home/document_view/3340http://www.lis.dar.gov.ph/home/document_view/5445http://www.lis.dar.gov.ph/home/document_view/5445http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/401http://www.lis.dar.gov.ph/home/document_view/453http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/226


10/51

a. presence of potential beneficiaries;

b. payment of disturbance compensation;

c. initial activities related to coverage;

d. certification from the MARO on whether or not the land has bee n placed under PD 27or whether a CLOA or EP has been issued over sa id property.

3. The investiga tion report is submitted to the Regional Director who prepared the Orde r for Denia l or Grant of the Exemption Clearance not later than fifteen (15) days

from the rece ipt of the repo rt. IaEScC

4. The exemption folder, together with the draft orde r is forwarded to the Lega l Affairs Office of the DAR Central Office which shall review the same and upon proper

review forwards the folder to the Office of the Secretary not later than fifteen (15) days from receipt of the folder.

5. The Secretary signs the Order for Denial or Grant and a copy o f the order is furnished to the Land Use Conversion Committee for purposes o f monitoring and statistical

information.

CHAPTER 5

LAND ACQUISITION

5.1 REQUISITES IN LAND ACQUISITION

What lands are acquired under CARP?

Only the private lands devoted to or suitable for agriculture, regardless of the ag ricultural products raised or can be raised therein, are subject of land acquisition. The lands o f

the public domain suitable for agriculture already belong to the State and are just distributed through either Free Patents for Alienable and Disposa ble (A&D) lands o r

Certificates o f Land Ownership Awards (CLOAs) for resettlement sites. In add ition, stewardship contracts are awarded for public lands cove red by the Integrated Social

Forestry Program (ISFP).

It must be noted that the private agricultural lands include those owned by p rivate entities and those owned o r held by gove rnment agencies, corporations, and

instrumentalities.

Specifically, the following lands may be acquired under CARP:

a. rice and corn lands under PD 27/EO 228;

b. idle or abandoned lands;

c. lands foreclosed by private and gove rnment financial institutions;

d. priva te agricultural lands

e. public lands suitable for agriculture;

f. lands acquired by PCGG;

g. lands used by multinational corporations

What are the requisites in land acquisit ion?

The following requirements must be met for land acquisition to be completed:

a. That the land is priva tely owned and found suitable for agriculture;

b. That there are beneficiaries willing to take over the ownership of the land and make it productive;

c. That the landowner is paid just compensation; or a trust deposit is made in his/her name if the

value is contested; and

d. That title to the land is transferred in the name of the Republic of the Philippines.

However, full payment of just compensation and transfer of title to the Republic of the Philippines are not

requisites in VLT/DPS. Moreover, under EO 407, the payment of just compensation to the government

instrumentality as landowner may come even after land distribution.

5.2 MODES OF ACQUISITION

What are the modes of acquiring lands for distribution under CARP?

Private agricultural lands cove red by CARP are acquired through any of the following mode s:

a. Compulso ry Acquis ition (CA);

b. Voluntary Offer to Sell (VOS);

c. Voluntary Land Transfer/D irect Payment Scheme (VLT/DPS);

d. Operation Land Transfer (OLT) under PD 27and EO 228; and

What are the basic diff erences among these modes?

a. OLT is gove rned by PD 27and EO 228and has been in operation since 1972. It follows a different set of procedures, particularly in land valuation.

b. Land acquisition under OLT and CA is done through the mandate of the law whether or not the landowner disa grees to part with his property.

c. CA follows the schedule of CARP implementation based on the area of the landowner's landholdings. In contrast VOS may be done even for lands not yet scheduled

by law to be acquired.

d. EO 407as amended pertains only to government agencies as landowners in a p ropriety capacity, or to public A & D lands under their administration by virtue of

presidential proclamation.

e. VLT/DPS, on the other hand, is a voluntary arrangement entered into by a landowner and a qualified farmer-beneficiary to directly transfer the land to the beneficiary

under terms and conditions mutually agreed by them but with payment terms not less favorable to the farmer than if it were the government purchasing the land and transferringit to the beneficiary.

5.2.1 COMPULSORY ACQUISITION

What are the existing administrative orders on compulsory acquisition of lands?

These Administrative Orders are:
http://www.lis.dar.gov.ph/home/document_view/3402http://www.lis.dar.gov.ph/home/document_view/3419http://www.lis.dar.gov.ph/home/document_view/3795http://www.lis.dar.gov.ph/home/document_view/3419http://www.lis.dar.gov.ph/home/document_view/3795http://www.lis.dar.gov.ph/home/document_view/3402http://www.lis.dar.gov.ph/home/document_view/3419http://www.lis.dar.gov.ph/home/document_view/3795http://www.lis.dar.gov.ph/home/document_view/3795


11/51

a. Administrative O rder No. 11, Series o f 1994 Revising the Rules and Regulations Covering the

Valuation of Lands Voluntarily Offered or Compulsorily Acquired as Embodied in Administrative Orde r No.

06, Series of 1992;

b. Administrative O rder No. 01, Series o f 1993 An Orde r Amending Certain Provisions of

Administrative O rder No. 09, Series o f 1990, entitled "Rev ised Rules Gove rning the Acquisition of

Agricultural Lands subject to Voluntary Offer to Sell and Compulsory Acquisition Pursuant to RA 6657"

c. Administrative O rder No. 12, Series of 1990 Policy Guidelines and O perating Procedures in

the Identification and Acquisition of Idle and Aba ndoned Lands.

What lands are covered by compulsory acquisition?

Except in the case of tenanted rice and co rn lands under PD 27, which are acq uired following a different

set of rules, compulsory acquisition (CA) is done for all p rivate agricultural lands which become due forcoverage following the phasing of implementation earlier discussed. However, CA is suspended in those

cases where the landowners op t for other modes of co mpliance, e.g., voluntary land transfer or stock d istribution op tion. CA is resumed once the negotiations in these o ther

modes fail.

Compulsory acquisition is also done in idle and abandoned lands regardless of their size and phasing, and in lands whose commercial farm deferment is revoked.

What are idle or abandoned lands?

Idle or abandoned lands refer to ag ricultural lands not cultivated, tilled or developed to produce any crop nor devo ted to any specific economic purpose continuously for a

period o f three (3) years immediately p rior to the receipt of notice of acquisition by government as provided under RA 6657. They do not, however, include the following:

a. those that have become permanently or regularly devo ted to non-ag ricultural purposes;

b. those that have become unproductive by reason of force majeure or any other fortuitous event, provided that prior to such event, such land was previously used for

agricultural or other eco nomic purpose. (Section 3, RA 6657)

Can the DAR compulsorily acquire a landholding whose ownership is under litigation or judicial proceedings?

Yes, if it is clear that no matter what the outcome of the litigation may be, the land is still covered under CARP. In such case, the DAR shall select the retained area and the

compensation for the land shall be held in trust pending the resolution of the disputes.

However, if one or bo th of the parties to the case are groups of individuals, the hectarage involved in the poss ible exercise o f the right of retention should be considered in the

acquisition of the land.

However, in the case o f PCGG/APT acquired a ssets whose ownership is contested in court, the DAR and the PCGG have an understanding that a proper motion will be filed

in court to a llow DAR to acquire such property, even pending litigation.

What if the person who is declared by the court as the lawful owner subsequently disagrees with the area chosen by DAR for retention? What if he has exercised retention in another

property?

The CLOA could be amended by the DAR or the landowner filing a petition with the DARAB. However, if the landowner is no longer entitled to retention, then the area

previously set aside for retention may also be covered.

A couple owning only 30 hectares died in January 1988 leaving as heirs six children with ages ranging 25-40. No partition of the property has been done and the children do not own

other agricultural lands. How many hectares may be compulsorily acquired?

None. Even if the title is still in the name of the couple, ownership automatically transferred to the children upon their parent's death. The six children are already the owners.

Thus, at five hectare retention per landowner, the entire 30 hectares may be retained.

AO- 01, Series of 1989allows the registration of a de ed o f extra-judicial partition of the property of a deceased who died prior to 15 June 1988.

Note, however, that if the parents died after 15 June 1988, the land may be entirely acquired and distributed if the children are neither actual tillers or direct farm managers. If they

are, they will each be entitled to an award of three (3) hectares. Otherwise, they will only be entitled to the compensation for the land. But the land will be acquired and

distributed under CARP. Moreover, the DAR and the ROD will no longer allow the partition of the property except in favor of the qualified farmer-beneficiaries. This is in line with

the fact that as of 15 June 1988, by operation of the law, all lands in excess of t he retention limit are already covered by CARP.

If in the course of CARP coverage, the owner alleges that the land is exempted under Sec. 10, RA 6657, what should you do?

Exception under Section 10 of RA 6657is not automatic. UnderAO- 13, Series of 1990, persons or representatives of persons o wning, administering or manag ing lands

believed to be actually, directly and exclusively used and are necessa ry for any of the purposes under Section 10 should file a written app lication with DAR. This applica tion

should be approved by the Regional Director.

The MARO should, therefore, check if an application has be en filed and if the application has been duly approved. Otherwise, the MARO should treat the matter as a CARP

protest and let the Regional Director rule on the matter. (AO-09, series of 1994).

If in the course of coverage, the owner alleges that the property is already reclassified as residential since 1986, what should you do?

The MARO should determine if the prope rty is covered by DOJ Opinion No. 44and whether an application for exemption has been filed b y the landowner. He should also

investigate the actual land use a nd whether the land is irrigated, irrigable or is programmed for irrigation. He should also check the zo ning plan or municipal/city ordinance

approved by the HLURB. Only if it is clear that the said landholding does not fall within any of the above, should the MARO proceed with the acquisition of the property.

If in the course of coverage, the owner alleges that about one year before the notice of acquisition, he has filed an application for conversion, what should you do?

The MARO should check the allegation, i.e., whether there really was a n application for conversion filed a ye ar ago . If there is none, conversion is not possible because the

notice of acquisition has a lready b een issued. If there is, the issue of conversion should first be resolved.

5.2.2 VOLUNTARY OFFER TO SELL (VOS)

What is the VOS scheme?

VOS is a scheme wherein landowners come forward and voluntarily offer their agricultural lands for coverage regardless of the phasing. The DAR encourages this mode

because VOS generally ensures the cooperation of the landowners.

What are the existing policy guidelines governing VOS?

The implementing po licy guidelines on VOS a re:

a. Administrative O rder No. 11, Series o f 1994 Revising the Rules and Regulations Covering the

Valuation of Lands Voluntarily Offered or Compulsorily Acquired as Embodied in Administrative Orde r No.

06 Series of 1992;

b. Administrative O rder No. 01, Series o f 1993 An Orde r Amending Certain Provisions of

Administrative O rder No. 09, Series o f 1990 Entitled "Revised Rules Governing the Acquis ition of
http://www.lis.dar.gov.ph/home/document_view/374http://www.lis.dar.gov.ph/home/document_view/8273http://www.lis.dar.gov.ph/home/document_view/5445http://www.lis.dar.gov.ph/home/document_view/452http://www.lis.dar.gov.ph/home/document_view/449http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/102http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/3795http://www.lis.dar.gov.ph/home/document_view/448http://www.lis.dar.gov.ph/home/document_view/374http://www.lis.dar.gov.ph/home/document_view/8273


12/51

Agricultural Lands Subjec t to Voluntary O ffer to Se ll and Compulso ry Acquisition Pursuant to RA 6657";

c. Administrative O rder No. 05, Series of 1992 Clarificatory Guidelines and Amendments to AO

No. 09, Series of 1990.

Where should the landowner file the application for VOS?

Appli cation for VOS can be filed e ither at the Central Office, or a t any field office of DAR. Howeve r, the rece iving o ffice should forward the applica tion to the MARO of the

municipality where the land is loca ted.

What incentives are given to landowners who offer their lands under VOS?

The cash portion of the compensation to the landowner is increased by five pe rcent (5%), while the LBP bond portion is co rrespondingly dec reased by five percent. However,

this incentive is not available to banks and other financial institutions.

It should be noted that the total compensation is not increased, only the proportion of the cash component.

May an agricultural land which has been mortgaged also be voluntarily offered under CARP?

Yes. In this case, the MARO should secure a statement of account from the creditor and recommend the settlement of the obligation through payment in LBP bonds.

Can government financial inst itutions voluntarily offer foreclosed but redeemable properties which are not yet transferred to them?

No. The GFIs have to wait for the expiration of the redemption period.

Are landowners allowed to withdraw lands offered under the VOS scheme?

No. The exceptions are the instances p rovided in Administrative Order No. 05, Series of 1992, namely:

a. If the subject landholding is part of the landowner's retained area, provided the landowner has not yet received any payment;

b. If the landowner wants to shift the mode of acquisition from VOS to VLT/DPS;

c. If the offered land is to be covered in 1994 and the landowner wants to wait for the compulso ry coverage under Phase III-B. If the Notice of Valuation has been served,

however, the withdrawal may no longer be a llowed.

d. If the DAR determines the landho lding to be more suitable for a town site, resettlement or institutional site to address a calamity situation. It should be noted that this

case is limited to calamity situations. Further, the approval of the withdrawal of the VOS does not automatically authorize the land use conversion of the land. The owner must

still apply for conversion.

What are the instances in which the DAR may reject a VOS application?

The DAR may reject a voluntary offer to sell in the following instances:

a. If the land is not suitable for agriculture, or has more than 18% slope and is underdevelope d;

b. If there are no takers or beneficiaries of the land for valid reasons (e.g., peace and order situation) without prejudice to future coverage of the area under CARP; and

c. If the only identified agra rian reform beneficiaries (ARBs) are the qualified children of the landowner.

5.2.3 VOLUNTARY LAND TRANSFER/DIRECT PAYMENT SCHEME (VLT/DPS)

What is the VLT/DPS mode?

VLT/DPS is a scheme wherein a landowner of an agricultural land cove red by CARP and the qualified beneficiaries of such land agree to the direct transfer of the ownership of

the land, a s provide d for under Sections 20 and 21 of RA 6657. The area to be transferred should not, however, be less than the area which the government through

compulsory acquisition would otherwise a cquire.Administrative O rder No. 13, Series o f 1991, embod ies the rules and p rocedures governing VLT/DPS.

May a landowner unilaterally decide to distribute his land through the VLT/DPS scheme?

No. An agreement between the landowner and the qualified ARBs as approved by the DAR is necessary.

What is the basic requirement in VLT/DPS?

It is imperative that the ARBs give their informed consentto the landowner's VLT/DPS proposal. Specifically, this means that the ARBs should be made aware of their rights and

options under the law, particularly, the terms and conditions of land transfer under the "regular" compulsory acquisition mode.

Among o thers, the field imp lementor (Municipa l Agrarian Reform Officer o r Agrarian Reform Prog ram Technolog ist MARO or SARPT /ARPT) must exp lain to the ARBs: (1)

that the land will sooner or later be acquired under CA subject to the phasing; and (2) about how much they will have to pay under the CA mode.

VLT/DPS is a scheme favorable to the Government for two reasons. First, Government does not have to pay for the land. Second, the a greement between the two pa rties

facilitates land acquisition and distribution. The DAR, however, ought to ensure that the beneficiaries know what they are entering into and that terms and conditions of the

VLT/DPS a re not disadvantageous to the ARBs.

Who are the qualified beneficiaries under VLT/DPS?

The qualified beneficiaries a re the same as those who would be beneficiaries if the land were to be covered under compulsory acquisition or voluntary offer to sell. (See Sec.

22, RA 6657).

What is the prescribed period for the completion of VLT/DPS negotiations?

Negotiations for VLT/DPS between the landowner and the beneficiaries must be completed and the agreement arrived at must be submitted within one (1) year from the time

the DAR rece ives the notice o f application for VLT/DPS.

What if negotiations for VLT/DPS are not resolved after one year?

If VLT/DPS negotiations remain unresolved after one year, the land shall be co vered under compulsory acquisition.

When should the transfer of possession and land ownership of the land be done?

The transfer of possession and ownership should be done immediately after the submitted VLT/DPS agreement is approved by the DAR. Certificates o f Land Ownership

Award (CLOA) with the proper annotations to pro tect the landowner shall be issued to the beneficiaries.

May an agricultural land mortgaged to a bank be the subject of a VLT/DPS?

No. Land titles with existing liens and encumbrances shall not be covered under the VLT/DPS scheme. T his is a ruling made by DAR to simplify VLT/DPS transactions,

particularly to facilitate the immediate transfer of title to the ARBs.

5.3 EXECUTIVE ORDER NO. 407AS AMENDED

What is the significance of EO 407?

Executive Order No. 407dated 14 June 1990, entitled "Accelerating the Acquisition and Distribution of Agricultural Lands, Pasture Lands, Fishponds, Agro-Forestry Lands and
http://www.lis.dar.gov.ph/home/document_view/3402http://www.lis.dar.gov.ph/home/document_view/3402http://www.lis.dar.gov.ph/home/document_view/3402http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/463http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/381


13/51

Other Lands of the Public Domain Suitable for Agriculture" directs all government instrumentalities, including government financial institutions (GFIs) and government-owned or

controlled corporations (GOCCs) to immediately transfer to DAR all their landholdings suitable for agriculture for immediate distribution to qualified beneficiaries under CARP.

EO 407is a concrete act of the Government to d ivest itself of its agricultural landholdings as an exa mple for private landowners to follow. Moreover, inasmuch as the

landowners involved are also Government agencies, EO 407has facilitated the acquisition by the DAR of thousands of hectares of agricultural lands for distribution under

CARP.

EO 407covers the following:

* all agricultural lands owned or controlled by gove rnment depa rtments, agencies or instrumentalities, including lands foreclosed by government financing institutions;

* lands covered by cancelled or expired Timber License Agreements (TLAs) and Pasture Lease Agreements (PLAs) for redistribution by the DENR, in coordination with

the DAR, to qualified ARBs identified by the DAR; and

* lands covered by cancelled or expired Fishpond Lease Agreements (FLAs) for redistribution by the Department of Agriculture (DA), in coordination with the DAR to

qualified ARBs ide ntified by the DAR.

EO 448included within the coverage of EO 407all reservations or po rtions thereof, which are suitable for ag riculture and a re no longe r needed for the purpose for which they

were established.

EO 506, however, further amended EO 407to exclude:

* all exist ing and proposed national parks, game refuge, bird sanctuaries wildlife reserves, wilderness areas and other protected areas, including old growth or virgin forests and

all forests above 1,000 meters elevation or above 50 percent s lope until such time that they are segregated for agricultural purposes or retained under the National Integrated

Protected Areas System (NIPAS) of DENR.

5.4 PROCEDURES IN LAND ACQUISITION

What are the basic steps in land acquisition?

a. Identification and documentation of the landholdings, landowners and beneficiaries;

b. Land survey;

c. Review and completion of data/documents;

d. Land valuation and compensation; and

e. Transfer of title from the landowner to the Republic of the Philippines.

What are the changes in procedures for land acquisition contained inAO-01, Series of 1993?

a. The number of steps has been reduced by transferring from the DAR Regional Office to the

Provincial Office the review and comple tion of documents before submission of the claim folder to

the Land Bank of the Philippines.

b. The conduct of the field investigation can proceed even if the LBP representative is unavailable. This was made possible by dividing the Field Investigation Report

into two parts. Part I contains data on the landholding and its suitability to agriculture. Part II, on the other hand, provides data inputs for the determination of the land valuation.

Part I can be accomplished even without the p resence o f the LBP represe ntative although the data are subject to review by LBP.

c. The conduct of public hearing was dele ted. In lieu thereof, the Notice of Coverage , Field Investigation Report and the Notice of Land Acquisition and Valuation shall be

posted for a pe riod of one week on the bulletin boards of the ba rangay/municipal/provincial halls where the property is located.

d. CARP forms were simplified and reduce d in number.

e. The acquisition process has bee n facilitated by requiring the LBP to immediately open a trust account in the name of the landowner, whether the landowner accep ts or

rejects the land valuation. Actual release, howeve r, shall be e ffected only after the landowner's co mpliance of a ll the requirements.

What is the first step in land acquisition?

Land acquisition, regardless of the mode, b egins with the identification of landowners, landholdings and beneficiaries cove red by CARP.

Under the Land Acquisition and Distribution Tracking System (LADTRACKS) and the CARP Scope Validation project, field o ffices have been tasked to prepare a mas ter list or

inventory of landholdings in their area of cove rage. This inventory is derived from the LISTASAKA statements, as verified or complemented by the reco rds of the Register of

Deeds and Assessor's O ffices, review o f the municipal town plan and z oning ordinances, field surveys, interview and community consultations, and g eneral knowledge of the

land ownership pattern in the ba rangays o r municipalities.

With these bas ic tools, the landowners who own agricultural lands in excess of the retention limit may be easily determined and their lands classified according to the

implementation phase or order of priority of CARP.

5.5 PRIORITIZATION OF LANDS FOR COVERAGE

What are the criteria for prioritizing the coverage of landholdings in the master list?

Quality land distribution cannot be overemphasized. More than just meeting the targets, land distribution should be done with the end in mind of uplifting the farmer

beneficiaries' living condition. Priority should, therefore, be given to areas where success of beneficiaries development is paramount. The following should be the basic

considerations in the p rioritiza tion of covered areas:

a. Barangays covered by identified ARCs;

b. Leve l of organiza tion of the farmers Consistent with the peo ple- centered develop ment thrust of the DAR, the higher the leve l of organiza tion of farmers, the grea ter

should be the priority. This will not only facilitate the land acquisition and distribution process but also hasten the development of viable agrarian reform communities in the

area;

c. Incidence of agrarian unrest The greater the incidence of unrest, the higher should be the priority to promote the reso lution of the agra rian disputes. Utmost care

should however, be made to ensure that the landholding is indeed covered by CARP;

d. Number of farmers to be benefitted The higher the number, the greater should be the priority, again in line with peop le- centered development;

e. Size of the landholding Inasmuch as nearly the same efforts will have to be expended for either big or small landholdings, it makes sense to put higher priority on

the large r landholding;

f. Presence of support factors Areas with coope rative landowners, supportive community leaders and local government executives, active BARCs and POs/NGOs,

etc. should receive higher priority because it is in these areas where agrarian reform implementation will have greater chances o f success;

g. Presence of a title over the property Titled properties are easier to acquire because, as it is the norm under our Torren's Title System, the title is the strongest proof

of the land ownership. Untitled properties require much more difficult documentation to ensure that the land actually exists and that the current landowner is being addressed.

Thus, all other considerations being equal, titled prope rties should receive higher priority. ScaHDT

5.6 RECONSTITUTION OF TITLE
http://www.lis.dar.gov.ph/home/document_view/374http://www.lis.dar.gov.ph/home/document_view/3402http://www.lis.dar.gov.ph/home/document_view/3347http://www.lis.dar.gov.ph/home/document_view/3402http://www.lis.dar.gov.ph/home/document_view/3344http://www.lis.dar.gov.ph/home/document_view/3402http://www.lis.dar.gov.ph/home/document_view/3402http://www.lis.dar.gov.ph/home/document_view/3402


14/51

What can be done in case the original title of the land got lost or was destroyed due to fire, flood or force majeure in the register of deeds?

In general, lost or de stroyed original co pies of certificates of title a re reconstituted throughjudicial proceedingspursuant to Section 110 of the Property Registration Decree (PD

No. 1529). The procedure is prescribed in Republic Act No. 26and implemented in LRA Circular No. 35 dated 13 June 1983.

However, RA 6732as implemented by LRA Circular No. 13 dated 26 July 1989, allows for administrative reconstitutionwhen the original copies of the certificates of title in the

Office o f the Register of De eds are de stroyed due to fire, flood, or other force majeure as determined by the LRA administrator, where the destroyed records constitute a t least

ten percent (10%) of the total number of titles but in no case shall these be less than 500. Thus, administrative reconstitution is allowed in Batangas City, Malolos, Bulacan, and

in the p rovinces of Eastern Samar, Camarines Sur, Isabela, and Oriental Mindoro where the Offices of the Register of Deeds were des troyed by fire.

The law a lso co vers administrative reconstitution of cop ies o f original certificates of title destroyed b y fire, flood or other force majeure which occurred fifteen years before its

effectivity in 1989.

What if it is the owner's duplicate copy which is lost while the original is still on file?

Then a petition for the issuance of a new owner's duplicate copy shall be filed with the Regional Trial Court. (Sec. 109, PD 1529)

Who should file the petition for reconstitution of title?

LRA Circular No. 35, Series of 1983 provides that the landowner or an interested party should file a petition for reconstitution with the Clerk of Court of the Regional Trial Court

having jurisdiction of said property, in case of judicial reconstitution; or with the Register of Deeds concerned, in the case of administrative reconstitution.

However, in orde r not to delay acquisition and distribution, the DAR issued Memorandum Circular No. 05, Series of 1994which provides that the duly authorized DAR lawyer

can file the petition in the Regional Trial Court in case of judicial reconstitution, or with the Register of Deeds concerned in case of administrative reconstitution, provided that a

Notice o f Coverage has already been issued covering the property. However, the DAR shall endeavor to secure a written permission from the registered owner/s of lost or

destroyed titles.

What are the procedures for judicial reconstitution?

1. The petition is filed with the Clerk of Court of the Reg ional Trial Court which has jurisdiction over the prope rty. Such petition is accompa nied by a plan and technical

description of the subject land, and a certification from the ROD that the original copy of the title was burned, lost, mutilated, etc. Photocopies of the Notice of Coverage shall

also be submitted if the DAR is the petitioner.

2. The Office of the Solic itor Gene ral, Office of the Prosecutor for the City or Province, DENR-LMB, LRA, and ROD concerned are furnished with cop ies of the petition.

3. Publica tion (twice) in the Official Gazette and posting in the bulletin boards of the respective municipality of the notice of initial hearing. Adjo ining owners and interested

parties are also furnished cop ies of the notice.

4. Processing in the Land Regis tration Authority.

5. Court proceed ings and court decision.

6. Surrender of the owner's duplicate Certificate of Title to the ROD.

7. Reconstitution proper of a new Original and Owner's Duplicate Certificate of Title by the ROD.

What are the procedures for administrative reconstitution?

1. The petition accompa nied by three (3) photocopies of the owner's authenticated duplicate certificate of title; latest tax dec laration and Notice of Coverage (if DAR is the

petitioner) and an affidavit regarding circumstances of the p roperty are filed with the ROD concerned;

2. Publication and posting requirements;

3. Processing by the Reconstituting Officer designated by the LRA Administrator;

4. Issuance of Order to Reconstitute by the Reconstituting Officer;

5. Review by the LRA Administrator of the Orde r of Reconstitution and affirmation thereof, if proper;

6. Surrender of the Owner's or Co-Owner's duplicate Certificate of Title to the ROD; and

7. Issuance of reconstituted title and delivery of owner's or co- owner's duplicate Certificate of Title by the ROD concerned to the landowners or to DAR.

Who will shoulder the cost of the reconstitution proceedings?

Administrative reconstitution normally does not cost anything, except for incidental costs like photocopie s. However, judicial reconstitution requires p ublica tion which could be

substantial (around P1,500 at 1993 prices). If the petition was filed by DAR, then it shall shoulder this cost chargeable against CARP funds. Otherwise, it will have to be borne

by the farmer-beneficiary or the cooperative or farmers association.

5.7 UNTITLED PRIVATE PROPERTIES

Can untitled private properties be placed under CARP?

DAR's pe tition on the issue of placing untitled o r unregistered p rivate agricultural lands under CARP is that if there is no adve rse claimant ove r the subject landholding (e.g.,

there is no court case), then submission of documentary and/or testimonial evidence shall be conclusive proo f of ownership. The landholding may b e acquired under CARP

and the landowner entitled to p ayment in accordance with pertinent laws and DAR rules and regulations as resolved under DOJ Opinion No. 176, Series of 1992.

What if there are two or more claimants and there is a pending court case, to whom shall payment be made?

If there are two or more claimants and there is a pe nding court case, coverage of the land under CARP should proceed and the processing o f claim folder should continue

without interruption. But payment of said property shall only be effected to the claimant who has been declared by the Court as the lawful owner.

What safeguards have been insti tuted to ensure that untitled and unregistered private agricultural lands being covered by the program are properly supported by adequate

documents?

UnderAdministrative O rder No. 01, Series o f 1993, seve n items are listed as documentary requirements for processing claim folders of untitled properties. These a re:

1. Survey plan of the property duly approved by the Land Management Bureau, and if not availab le, a sketch plan certified to by said office, and technical description

thereof;

2. Certified copy of the present Tax Declaration in the name of claimant with correct lot number/s and area per approved plan;

3. Instruments of acquisition covering the subject property, such as Deed of Sale, Donation, Transfer, etc. in favor of claimant and those of his/her predece ssor/s interest;

4. Certification of the Assessor concerned showing the Tax Declaration issued, the declarant/s, the area covered, and the basis for the issuances and cancellationsthereof pertaining to the property/ies from the first declaration up to the tax declaration issued in the name of the claimant;

5. Certification from the Clerk of Court concerned whether or not the property/ies identified in the plan is/are covered by land registration proceedings or civil case, and if

the same is used as bond or bail in other court actions;

6. Certificates of the DENR-LMS stating the year the property/ies identified in the plan may already be co nsidered as private agricultural land, and the persons having the

best claim of ownership thereof; and

7. Certification from the Office of the Register of Deeds and Assessor concerned to the effect that as per their records, the property/ies as appe aring in the approved
http://www.lis.dar.gov.ph/home/document_view/374http://www.lis.dar.gov.ph/home/document_view/5527http://www.lis.dar.gov.ph/home/document_view/1991http://www.lis.dar.gov.ph/home/document_view/279http://www.lis.dar.gov.ph/home/document_view/3178http://www.lis.dar.gov.ph/home/document_view/3280http://www.lis.dar.gov.ph/home/document_view/279


15/51

survey plan is/are free from all liens and encumbrances.

5.8 FIELD INVESTIGATION

How will the landowner know that his or her land is being covered by CARP?

A landowner who has be en ide ntified should be notified by the MARO that his or her landhold ing is now

covered by issuing a Notice o f Coverage personally de livered or sent by registered mail. In that Notice, the

landowner is also informed of his or her right to select the retained area and of the field investigation which

will be conducted on the landholding.

A copy of the Notice shall also be posted for at leas t one week on the bulletin boa rd of the municipa l and

barangay halls where the land is located.

After identifying and documenting the ownership of the land, what must be done next?

The suitability of the land covered under CARP should next be established. This is done p rimarily by

undertaking the field investigation of the property to ascertain its suitability, productivity, and tenurial

characteristics.

Who are involved in the field investigation?

Aside from the MARO or ARPT and the landowner conce rned, representatives from the Department of Environment and Natural Resource s (DENR), Dep artment of Agriculture

(DA) and Land Bank o f the Philippines (LBP), as well as the BARC and p rospective a grarian reform beneficiaries should be invited to participate in the conduct of the field

investigation.

What if the invited representatives are not available?

The field investigation can proceed prov ided they were g iven due notice of the time and date of the investigation to be conducted, i.e., they were sent copies of Notice of

Conduct of Field Investigation. If it is the LBP representative who is not available, the DAR field implementor(s), together with the other parties shall conduct the field

investigation and accomplish Part I of the Field Investigation Report. Such report shall b e forwarded to the LBP representative for valida tion.

What if there is a difference in the fi ndings of the DAR and the LBP?

In the event that there is a difference or variance in the findings of the DAR and the LBP as to the propriety of coverings the land under CARP, whether in whole or in part, on the

issue of suitability to ag riculture, degree o f development or slope, and on the issue affecting idle lands, the conflict shall be resolved by a compos ite team composed of DAR,

DA, DENR, and LBP representatives which shall jointly conduct further investigation thereon. The team shall submit its written report of findings within five days from the

conclusion of the inspection. Such findings shall be binding to both DAR and LBP pursuant to the Joint Memorandum Circular of the DAR, LBP, DENR, and DA dated 27

January 1992. If the issue involved is on the suitability to agriculture and its development, the chairperson shall be the DA representative. If it is on the percentage slope, the

DENR representative shall be the chairperson of the team.

Why must the BARC and prospective ARBs be involved in the field invest igation?

It is important to involve not only the other concerned CARP implementing agencies but also the BARC and the prospective beneficiaries because the peo ple from the locality

have a wealth of information on the physical, agricultural and tenurial characteristics of the land. It is also wise to involve them from the beginning to generate their support and

encourage their crucial participation in the de velopment process.

CHAPTER 6

AGRARIAN REFORM BENEFICIARIES

6.1 QUALIFICATIONS OF BENEFICIARIES

What are the qualifications of an agrarian reform beneficiary?

To be an ag rarian reform beneficiary, one must:

a. be landless;

b. be at least 15 yea rs old or head of the family at the time the property was transferred in the name of the

Republic of the Philippines; and

c. have the willingness, ability and aptitude to cultivate the land and make it as productive as poss ible. (Section

23, Republic Ac t No. 6657)

Items (b) and (c) a bove are meant to ensure that the recipients of the land will judiciously use it and make it a

productive agricultural land.

What is the definition of landless?

A landless person is de fined by Section 25, RA 6657as one who owns less than three (3) hectares of agriculturalland. Section 7, RA 6657also provides that an owner-tiller may s till be a beneficiary of another land he or she does not own but is actually cultivating to the extent of the

difference between the a rea o f the land he/she owns and the award ceiling o f three hectares.

Thus, a tenant who owns one hectare o f agricultural land may still qualify as a beneficiary for two hectares of land.

Who are disqualified from becoming beneficiaries?

a. Those who fail to meet the qualifications as provided for under Section 22 of RA 6657.

b. Beneficiaries who have culpably sold, disposed or abandoned their lands.

c. Beneficiaries whose lands have been foreclosed by the LBP or reposse ssed by the landowner (in the case of VLT/DPS) for non-payment of an aggregate of three

annual amortizations.

d. Beneficiaries who have converted their land to non-ag ricultural use without prior approva l by DAR.

6.2 ORDER OF PRIORITY

What is the order of priority among the possible beneficiaries?

Section 22 of RA 6657provides that lands cove red by CARP shall be distributed as much as poss ible to landless residents of the same barangay o r, in the abse nce thereof,

landless residents of the same municipality.

The order of priority then starts with:

a. Qualified children. The qualified children of the lando wner are the first group entitled to be beneficiaries of the land. They are entitled to receive three hectares e ach.

b. Tenants and Lessees. The next group is composed of the agricultural lessees and share tenants. These farmers are entitled to receive the area of their tillage but not
http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/226


16/51

to exceed three (3) hectares, he or she may be awarded an additional area representing the difference, subject to the availability of land.

c. The order of priority then goes down as follows:

* regular farmworkers;

* seasonal farmworkers;

* other farmworkers;

* actual tillers or occupants of public lands;

* collectives or coope ratives of the beneficiaries; and

* others direc tly working on the land.

Given such order of priority, must all farmers in a c lass be allocated three hectares each before anyone in the next class can be identified as also a beneficiary of the land? Forexample, all regular farmworkers must first be allocated three hectares before any seasonal farmworker can be identified?

Strictly speaking, that would be a correct interpretation.

The CARP, however, seeks to help as many farmers as possible and make them beneficiaries of the program. Thus, a more libe ral interpretation is often better, provided the

economic viability of the award is not sacrificed. In this regard, a series of media tion conferences among the possible beneficiaries may be conducted to a llow the

participatory determination of how many beneficiaries there ought to be and what each beneficiary will receive.

6.3 FARMWORKER BENEFICIARIES

Who is considered a farmworker?

Farmworker

is defined as a natural person who renders service for value as a n employee or laborer in an agricultural enterprise or farm regardless of whether his/her compensation is

paid on a daily, weekly, monthly or "pakyaw"basis.

What are the different categories of farmworkers?

Regular farmworker

is a natural person who is employed on a permanent basis by an agricultural enterprise o r farm.

Seasonal farmworker

is a natural person who is employed on a recurrent, periodic o r intermittent basis by an ag ricultural enterprise

or farm, whether as a pe rmanent or a non- permanent laborer, such as "dumaan", "sacada" and the like.

Other farmworker

is a farmworker who is neither a regular nor a seasonal farmworker. Example is a farmworker who does

several farm activities but is not paid for his/her labo r.

Technical farmworker

is a natural person e mployed by an agricultural enterprise or farm, who is highly educa ted and trained and pe rforms functions in scientific, engineering, medica l, teaching and

other fields, but who is not vested with managerial or supervisory functions (e.g., chemists, agronomists, veterinarians, soil a nalysts).

Managerial or Supervisory farmworkeris a natural person who is employed by an agricultural enterprise or farm vested with powers or prerogatives: (1) to lay do wn and execute

management policies; (2) to hire, transfer, suspend, layoff, recall, discharge, assign or disc ipline employees; and/or (3) to effectively recommend such managerial actions.

Who among these farmworkers can qualify as beneficiaries?

They a re those found to be directly working on the land, whether as regular, sea sonal or other farmworkers at the time the field implementors conduct actual investigation and

documentation. However, other workers (such as technical farmworkers) who a re directly employed by the agri-business enterprise o r corporation, except those holding

managerial or supervisory po sitions may be considered as beneficiaries provided they meet the basic qualifications in Section 22, RA 6657.

Even a farmworkers who has ceased to work as a result of pending agrarian or labor dispute but is willing to be an awardee o f the agricultural land may be considered a

beneficiary provided he/she has filed an appea l for reinstatement and has not yet obtained a substantially equivalent and regular farm employment. (AO-02, Series of 1993).

What if a f armworker who has already been identified as qualified beneficiary gets promoted to managerial or supervisory posit ion prior to land transfer?

The farmworker may still qualify as awardee of the land provided he/she gives up the manage rial or supervisory position. (AO-02, Series of 1993)

What is meant by an agrarian or labor dispute?

It refers to any controversy relating to tenurial a rrangements, whether leasehold, tenancy, stewardship, or otherwise, over land de voted to agriculture, including disputesconcerning farmworkers, associations or representation of persons in negotiation, fixing, maintaining, changing or seeking to a rrange terms and conditions of such tenurial

arrangements.

It also includes controversy relating to compensation of lands acquired under RA 6657and other terms and conditions of transfer of ownership from landowners to farmworkers,

tenants and other ARBs, whether the disputants s tand in proximate relation o f farm operator and beneficiary, landowner and tenant, or lesso r and lessee .

Can farmworkers who are husband and wife each receive three hectares?

Yes, they may be e ntitled to three hectares each provided that their vested rights to the land have be en duly established, in which case, they shall b e issued sepa rate CLOAs.

(AO-02, Series of 1993)

6.4 SCREENING OF BENEFICIARIES

Is it the landowner who selects the beneficiaries of his/her landholding?

No. The landowner doe s not have the right to select who the beneficiaries should be. Except in the case of Voluntary Land Transfer or Direct Payment Scheme, land

acquisition and distribution involves two separate transactions. First, t he government buys the land from the landowner and then sells it to the farmer-beneficiaries. It is not the

landowner, therefore, who is selling the landholding to the farmer-beneficiaries.

It is the Municipal Agrarian Reform Officer (or the Agrarian Reform Program Technologist), together with the BARC who screens the beneficiaries.

Even in the case of VLT/DPS, the landowner cannot just select a beneficiary. The beneficiary must qualify and it is s till the MARO and the BARC who will do the screening.

What is the recourse of farmers who claim they have a priority over those who have been identified by the MARO as the beneficiaries of the land?

The farmers can file a protest with the MARO or the PARO who is currently processing the claim folder. Once a written protest is filed, the MARO or PARO shall comment on the

said protest and submit the same to the Regional Director who shall rule on the protest. If the parties disagree with the RD's decision, they can file a written motion for

reconsideration. If the motion is denied, the farmers can file an appeal to the DAR Secretary. (AO-09, Series of 1994)
http://www.lis.dar.gov.ph/home/document_view/452http://www.lis.dar.gov.ph/home/document_view/382http://www.lis.dar.gov.ph/home/document_view/226http://www.lis.dar.gov.ph/home/document_view/382http://www.lis.dar.gov.ph/home/document_view/382http://www.lis.dar.gov.ph/home/document_view/226


17/51

What can be done in case the tenants or tillers refuse to be interviewed and identified as beneficiaries?

The MARO and the BARC should advise the potential ARBs about the consequences of their refusal. If they still refuse, the MARO and BARC should execute a certification to

this effect and post it in conspicuous places for 30 days. Thereafter, new ARBs may be instituted. The MARO should, however, exercise great care under this situation. Refusal

to be identified as beneficiaries can be d ue to several reaso ns, such as lack o f assurance of support services which used to be provided by the landowner, fear of the

landowner espec ially if the farmers are unorganized. That is why, MAROs should not overlook the importance o f social p reparation activities p rior to land distribution.

What can be done in case the occupants of an idle and abandoned agricultural land are found to have prematurely entered the landholding?

Premature entry is strongly discouraged. Should it happen, however, the first consideration should be whether the occupants are the qualified beneficia

Agrarian laws Reviewer

Documents

Transcript of Agrarian laws Reviewer