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International Land Coalition c/o International Fund for Agricultural Development (IFAD) Via Paolo di Dono 44, 00142 Rome, Italy Tel: +390654592445 Email: [email protected]

The Regional Coordination Unit of ILC is hosted by KPA and can be reached at: Konsorsium Pembaruan Agraria (KPA)Komplek Liga Mas, Jl. Pancoran Indah I No. 1 Block E3 Pancoran, South Jakarta, 12760 Indonesia Tel: +62217984540 Email: [email protected]

This publication was made possible with the support of the International Land Coalition (ILC) through its National Engagement Strategy in the Philippines. The views presented in this publication do not necessarily reflect the views of ILC.

UPDATES TO AGRARIAN REFORM LAWS, RULES AND REGULATIONS:A Paralegal Manual

Published byKAISAHAN tungo sa Kaunlaran ang Kanayunan at Repormang Pansakahan (KAISAHAN, Inc.)and the People’s Campaign for Agrarian Reform, Inc. (AR Now!)

KAISAHAN, Inc.38-B Mapagsangguni St. Sikatuna Village,Quezon City 1101 Philippines

Copyright 2017Quezon City, PhilippinesAll rights reserved.

This publication may be freely cited, quoted, reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise) provided proper citation of the publishers is made.

ISBN # 978-971-0311-25-5

EDITORIAL TEAM Author / Editor Atty. Mary Claire DemaisipContributors Maricel Almojuela-Tolentino Kimberly Alvarez Atty. Janice Co Gillian Marie Cruz Anthony Marzan Atty. Rolly Francis Peoro Balaod Mindanaw Center for Agrarian Reform and Rural Development (CARRD) PAKISAMA Task Force Mapalad (TFM)Layout & Design Gillian Marie CruzPhotos KAISAHAN, Inc.

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Updates to Agrarian Reform Laws, Rules and Regulations: A Paralegal Manual

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Table of Contents

Contents iList of Acronyms iiiForeword viii

Introduction 1

CARP Beyond June 30, 2014 3

Introduction 5 CARP Beyond June 30, 2014 9

DAR Implementing Rules and Regulations 17

Introduction 19 AO No. 07, Series of 2011, as amended 21

Land Covered Under CARPER 22 Reclassification and Foreclosure 25 Schedule of Acquisition and Distribution 26 General Flow of the LAD Process 29 Complusory Acquisition 30 Voluntary Offer to Sell 38 Landowner’s Options 40 Nomination of Preferred Beneficiaries 41 Coverage / Exemption / Exclusion 41 Retention 49 ARB Identification and APFU Signing 51 Land Survey and Joint Field Investigation 63 Land Valuation 66 CLOA Generation 69 Obligations of ARBs 75 Installation of ARBs 76 Powers and Duties 78

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LAD Process: Role of the PNP and AFP 81in the Installation of ARBs

Introduction 83 Role of the PNP and AFP in the Installation of ARBs 85 Basic Agrarian Reform Concepts 90 and Principles

Tenancy and Leasehold 97

Introduction and Background 99 Tenancy and Leasehold 101

Administrative Orders No. 02, 2014 113 Operating Procedures 120 Administrative Order No. 08, 121 Series of 2014

Untitled Privately Claimed Agricultural Lands (UPALS) 125

Introduction / Background 127 Untitled Privately Claimed Agricultural Lands (UPALs) 129

Socialized Credit for Farmers: Agrarian Production 137Credit Program (APCP)

Introduction / Background 139 Agrarian Reform Production Credit Program (APCP) 141

References 151

Annex: Administrative Order No. 03, Series of 2017 157

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list of acronyms

A&D Alienable and Disposable

ACP Absolute Community of Property

AdvSP Advanced Survey Plan

AFP Armed Forces of the Philippines

AO Administrative Order

AOC Agrarian Operation Center

AJD Agrarian Justice Delivery

ALI Agrarian Law Implementation

APCP Agrarian Production Credit Program

APFU Application to Purchase and Farmer’s Undertaking

ARB Agrarian Reform Beneficiary

ARBO Agrarian Reform Beneficiary Organization

AR Now! People’s Campaign for Agrarian Reform

ASP Approved Survey Plan

BALAOD BALAOD-Mindanaw Inc.

BARC Barangay Agrarian Reform Council

BFP Bureau of Fire Protection

BIR Bureau of Internal Revenue

BLAD Bureau of Land Acquisition and Distribution

CA Compulsory Acquisition

CARRD Center for Agrarian Reform and Rural Development

CARL Comprehensive Agrarian Reform Law

CARP Comprehensive Agrarian Reform Program

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CARPER Comprehensive Agrarian Reform Program with Extension and Reforms

CARPO Chief Agrarian Reform Program Officer

CBFMA Community Based-Forest Management Agreement

CDO Cease and Desist Order

CENRO Community Environment and Natural Resources Officer

CF Claim Folder

CHR Commission on Human Rights

CLOA Certificate of Land Ownership Award

CNI Capitalized Net Income

COCAR Congressional Oversight Committee on Agrarian Reform

COD Certificate of Deposit

CPG Conjugal Partnership of Gains

CPVPD Claims Processing, Valuation and Payment Division

CS Comparable Sales

DA Department of Agriculture

DAR Department of Agrarian Reform

DARAB Department of Agrarian Reform Adjudication Board

DARMO Department of Agrarian Reform Municipal Office

DARPO Department of Agrarian Reform Provincial Office

DARRO Department of Agrarian Reform Regional Office

DENR Department of Environment and Natural Resources

DILG Department of Interior And Local Government

DND Department of National Defense

DNYD Distributed But Not Yet Documented

DOJ Department of Justice

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DOLE Department of Labor and Employment

DOST Department of Science and Technology

DSWD Department of Social Welfare and Development

EO Executive Order

EP Emancipation Patent

FIR Field Investigation Report

FO Farmers Organization

FWB Farm Worker Beneficiary

GE Geodetic Engineer

JAO Joint Administrative Order

JFI Joint Field Investigation

KAISAHAN KAISAHAN tungo sa Kaunlaran ng Kanayunan at Repormang Pansakahan

LAD Land Acquisition and Distribution

LBP Land Bank of the Philippines

LDF Land Distribution Folder

LDIS Land Distribution Information Schedule

LGU Local Government Unit

LMS Land Management Sector

LRA Land Registration Authority

LV Land Value

LVW Land Valuation Worksheet

MARO Municipal Agrarian Reform Officer

MARPO Municipal Agrarian Reform Program Officer

MC Memorandum Circular

MOA Memorandum of Agreement

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MOV Memorandum of Valuation

MV Market Value

NCIP National Commission on Indigenous People

NLVA Notice of Land Valuation and Acquisition

NOC Notice of Coverage

OCT Original Certificate of Title

OLT Operation Land Transfer

OP Office of the President

OSEC Office of the Secretary

PAKISAMA Pambansang Kilusan ng mga Samahang Magsasaka

PAL Private Agricultural Lands

PAO Public Attorney’s Office

PARAD Provincial Agrarian Reform Adjudicator

PARC Presidential Agrarian Reform Council

PARCCOM Provincial Agrarian Reform Coordinating Committee

PARO Provincial Agrarian Reform Officer

PARPO Provincial Agrarian Reform Program Officer

PCA Philippine Coconut Authority

PCGG Presidential Commission on Good Government

PD Presidential Decree

PDG Police Director General

PENRO Provincial Environment and Natural Resources Officer

PESANTEch Paralegal Education Skills Advancement and Networking Technology

PLR Provisional Lease Rental

PNP Philippine National Police

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PO People’s Organization

POC Police Commissioned Officer

PPBDD Provincial Program Beneficiaries Development Division

PPU Pre-Processing Unit

PSS Perimeter Segregation Survey

RA Republic Act

RARAD Regional Agrarian Reform Adjudicator

RD Regional Director

RLO Registered Land Owner

ROD Register of Deeds

SALIGAN Sentro ng Alternatibong Lingap Panlegal

SC Supreme Court

SS Support Services

TCT Transfer Certificate of Title

TFM Task Force Mapalad

TRO Temporary Restraining Order

UPALs Untitled Private Agricultural Lands

VLT Voluntary Land Transfer

VOS Voluntary Offer to Sell

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The International Land Coalition (ILC) started the National Engagement Strategy (NES) as a unified approach to bring members at the country level to work on common agenda. Having a long history of involvement on land issues in the country, CSO members of ILC in the Philippines have agreed to pursue the following goal and objectives of NES in pushing for policy reforms to enhance the poor’s access to land:

• pursue reforms and protect the gains of past and current asset reform policies and programs;

• address inter-sectoral concerns on land and future legal frameworks;

• enhance the basic sectors’ capacities to demand and defend their rights and natural resources; and,

• develop a comprehensive and coherent land data system.

As part of enhancing the basic sectors’ capacities to demand and defend their rights and natural resources, NES Philippines work towards the strengthening of the paralegal work of the members to aide in fast-tracking of resolution of land claims. While a number of progressive legislations and policies on resource rights have been passed, the need to educate the farmers on their rights remain a challenge. At the same time, with the new provisions as well as the outstanding issues in relation to the implementation of the Comprehensive Agrarian Reform Program with Extension Reforms/CARPER (i.e., completion of land acquisition and distribution), and taking into consideration new strategies used by paralegals (i.e., use of information and communication technologies), the continuing learning and sharing of paralegal practices of members contribute to the process of empowering farmers in asserting their rights to land.

foreword

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It is in this context that the People’s Campaign for Agrarian Reform (AR Now!), Center for Agrarian Reform and Rural Development (CARRD), Pambansang Kilusan ng mga Samahang Magsasaka (PAKISAMA) and Task Force Mapalad (TFM) organized onsite training courses among their partner communities, conducted paralegal cliniquing sessions and convened a national inter-organizational sharing to jointly reflect on issues and draw lessons on practices that worked. Towards this end, the summative experiences of the members are incorporated in this updated version of paralegal manual supported by ILC in the previous NES.

We hope that the readers of this manual will find it useful for their advocacies.

Nathaniel Don E. Marquez Asian NGO Coalition for Agrarian Reform and Rural Development (ANGOC) Convenor of ILC NES in the Philippines

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Introduction

The “Repormang Pang-Agraryo at Kaunlarang Pangkanayunan: Manwal ng Paralegal” is a previously published guidebook aimed at

aiding farmer paralegals in learning and understanding Agrarian Reform. The publication of the paralegal manual was initiated by alternative legal resource institutions [BALAOD-Mindanaw Inc., KAISAHAN tungo sa Kaunlaran ng Kanayunan at Repormang Pansakahan and Sentro ng Alternatibong Lingap Panlegal (SALIGAN)] that are working for the legal empowerment of the marginalized sectors through the Paralegal Education Skills Advancement and Networking Technology (PESANTEch).The purpose of the PESANTEch program was to develop the legal capability of farmers and their organizations in order to facilitate agrarian reform implementation through paralegal formation.

In 2011, members of the People’s Campaign for Agrarian Reform network (AR Now!) collaborated on the crafting and publication of the “Repormang Pang- Agraryo at Kaunlarang Pangkanayunan: Manwal ng Paralegal, Ikaapat na Edisyon.” The 4th Edition Paralegal Manual was drafted to serve as a handbook for farmer paralegals in their on-going study of the concept, laws and rules on Agrarian Reform, to guide them in their continuing struggle in claiming and protecting their land rights under agrarian reform.

When the Comprehensive Agrarian Reform Program with Extension and Reforms (CARPER) was passed in 2009, the Department of Agrarian Reform (DAR) issued its implementing rules and regulations. Since then however, these guidelines were amended and/or changed. In addition, various policy issuances were also made by the DAR to secure the rights of the farmers amidst the challenges they are confronted with in the implementation of Agrarian Reform laws.

After the onslought of Typhoon Yolanda in 2013, DAR issued policy guidelines determining the rights and obligations of both farmers and

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landowners in leasehold areas affected by calamities and pest infestation.This is in response to the growing threat of the ill-effects of climate change to farmers, making them more vulnerable to exploitation and abuse.

In 2014, a policy issuance on the disposition of Untitled Private Agricultural Lands (UPALs) was issued by DAR and Department of Environment and Natural Resources (DENR). In the past, coverage and distribution of these lands were sidelined because of the uncertainty on the legal character of UPALs. The promulgation of these guidelines is a relevant step in clarifying the process of the Comprehensice Agrarian Reform Program (CARP) implementation with regard to UPALs.

This publication will provide updates on the rules and regulation related to the implementation of agrarian reform in the Philippines.

Also included in this publication are guidelines related to the role of the Philippine National Police (PNP) in the installation of agrarian reform beneficiaries (ARBs) in their awarded lands, as well as information related to accessing financial assistance the Agrarian Production Credit Program (APCP) under the joint credit and capacity development program of the Department of Agriculture (DA), DAR and Land Bank of the Philippines (LBP).

CARP beyondJUNE 30, 2014

carp beyond june 30, 2014

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Introduction

On June 15, 1988, Republic Act 6657 or the Comprehensive Agrarian Reform Law (CARL) was enacted. This was considered as the

centerpiece legislation of President Corazon Aquino’s administration in pursuing social justice. The Constitution lays the ground for the institutionalization of the CARP. Section 4, Article XIII of the 1987 Constitution provides that:

“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. To this end, the State shall encourage and undertake the just distribution of all agricultural lands, subject to such priorities and reasonable retention limits as the Congress may prescribe, taking into account ecological, developmental, or equity considerations, and subject to the payment of just compensation. In determining retention limits, the State shall respect the right of small landowners. The State shall further provide incentives for voluntary land-sharing.”

The CARP implementation has three (3) components –Land Acquisition and Distribution (LAD), Agrarian Justice Delivery (AJD), and Provision of Support Services (SS) to farmer beneficiaries. Unlike its predecessor, Presidential Decree 271 (PD 27), the CARL expanded the coverage of lands to all agricultural lands regardless of tenurial arrangements and crops planted therein.2 In implementing the CARP, land distribution is

1 Decreeing the Emancipation of Tenants from the Bondage of the Soil, Transferring to Them the Ownership of the land They Till and Providing the Instruments and Mechanism Thereof2 Section 4, R.A. 6657, as amended by R.A. 9700.


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complemented with support services delivery (infrastructure facilities, capacity building, credit and/or loan assistance).3 Under the CARL, land distribution of all lands covered by the program shall be completed the CARP will be implemented within ten (10) years from its effectivity.4 In 1998, R.A. 85325 was enacted, providing additional funding for CARP in the next 10 years.

In 2009, R.A. 9700 or the CARPER was passed into law and amended certain provisions of the CARL. It infused new funding for CARP implementation and introduced reforms to the existing law, such as6:

A. Creation of a Joint Congressional Oversight Committee on Agrarian Reform (COCAR) composed of members from the Senate and House of Representatives. The task of the COCAR is to monitor the CARP during its five (5) year implementation.

B. Stating a clear policy on food security and strict regulation on conversion of agricultural lands for uses other than food production.

C. Protection of irrigable and irrigated agricultural lands from conversion to non-agricultural uses.

D. Recognition of the equal rights of rural women to become agrarian reform beneficiaries of their own land and to access gender responsive support services.

E. Disallowance of the Voluntary Land Transfer (VLT) scheme for land acquisition.

3 Securing the Right to Land: An Overview on Access to Land in Asia, 2nd Edition, ANGOC, 2012, p.191.4 Section 5, R.A. 6657.5 An Act Strengthening Further the Comprehensive Agrarian Reform Program (CARP), by Providing Augmentation Fund Therefor, Amending for the Purpose Section 63 of Re public Act No. 6657, Otherwise Known As the CARP Law of 1988 6 Securing the Right to Land: An Overview on Access to Land in Asia, 2nd Edition, ANGOC, 2012, p.192.


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F. Recognition and guarantee of the indefeasibility of the Certificate of Land Ownership Award (CLOA), Emancipation Patents (EP) and other titles issued under any agrarian reform program one (1) year after its registration.

G. Granting of usufructuary rights to agrarian reform beneficiaries (ARBs) upon DAR’s possession of the agricultural lands covered under CARP.

H. Conferring of exclusive and original jurisdiction on the DAR Secretary of all cases involving the cancellation of registered EPs, CLOAs, and other titles issued under any agrarian reform program.

Five (5) years after the enactment of CARPER, the LAD process of the CARP remains to be completed. In its 2015 accomplishment report, the DAR stated that it has distributed a total of 4.724 million hectares to 2.790 million ARBs nationwide. Unfortunately, more than 600,000 hectares remain undistributed today excluding those landholdings that have yet to be issued Notices of Coverage (NOCs).7

At present, there is a policy gap in the implementation of CARP. Section 7 of R.A. 6657 as amended by RA 9700 states that:

“SEC. 7. Priorities. - The DAR, in coordination with the Presidential Agrarian Reform Council (PARC) shall plan and program the final acquisition and distribution of all remaining unacquired and undistributed agricultural lands from the effectivity of this Act until June 30, 2014.

XXX XXX XXX

7 What now For Agrarian Reform Implementation in the Duterte Administration?, Policy Brief, ILC-NES in the Philippines, August 2017.



Further, Section 30 of R.A. 9700 provides:

“Section 30. Resolution of Case. - Any case and/or proceeding involving the implementation of the provisions of Republic Act No. 6657, as amended, which may remain pending on June 30, 2014 shall be allowed to proceed to its finality and be executed even beyond such date.”

While the above quoted provisions mention a deadline in the implementation of LAD, vast tracts of agricultural lands remain to be covered and distributed to ARBs. Questions arise as to the effectivity of the program and how pending cases and issues will proceed in the given scenario.


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Did the CARPER law expire last June 30, 2014?No. T h e CARPER law did not expire last June 30, 2014. R.A. 6657 as amended by R.A.9700 remains effective even beyond the said date.

• The CARP as amended, has a continuing mandate to cover and distribute all agricultural lands to landless farmers and farmworkers. This is stated in Section 4, Article XIII of the Philippine Constitution.8 This is also in accordance with the State policy to “promote comprehensive rural development and agrarian reform.”9

• As mentioned, agrarian reform is a Constitutional mandate. As such, it cannot be considered to have ended until the objective of the CARP, which is the distribution of all agricultural lands to the landless, is attained.10

• Considered as the centerpiece program of the late President Corazon Aquino’s administration, the CARP was enacted to give life to the social justice mandate of the Constitution, which is the very heart of this fundamental law of the land.

8 Section 4, Article XIII provides: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 col-lectively the lands they till or, in the case of other farmworkers, to receive a just share of the fruits thereof. To this end, the State shall encourage and undertake the just distribution of all agricultural lands, subject to such priorities and reasonable retention limits as the Congress may prescribe, taking into account ecological, developmental, or equity considerations, and subject to the payment of just compensation. In determin-ing retention limits, the State shall respect the right of small landowners. The State shall further provide incentives for voluntary land-sharing.

9 Section 21, Article II of the Philippine Constitution.10 Queries on CARPER Beyond 2014, Legal Notes of Rep. Kaka Bag-ao, 2012.

CARP beyondjune 30, 2014



• It must be noted that the agrarian reform program as embodied in the CARP/CARPER law has three (3) components: Land Acquisition and Distribution, Agrarian Justice Delivery and Support Services. The agrarian reform program will reach completion only when all components have been achieved. Only then can it be said that the CARP has fulfilled its mandate.

• At present, with more than 600,000 hectares of agricultural land still to be covered and countless agrarian related disputes yet to be resolved, the objectives of agrarian reform cannot be considered as completed and accomplished.

• R.A. 6657 as amended by R.A. 9700 remains in force as there are no law or issuance repealing the same.

• Only the issuance of Notices of Coverage (NOCs) was discontinued starting July 1, 2014. Other components of the LAD are still in effect.

• Other components of the LAD proceed

What does June 30, 2014 signify?

June 30, 2014 is the directory deadline set by the law to complete the land acquisition and distribution of the CARP. This is NOT the expiration date of the program.

• Although June 30, 2014 is mentioned in the different provisions of the law, it does not mean that the LAD component of the CARPER will be implemented only up to this date.

• Periods prescribed by law are directory in nature. In mentioning June 30, 2014, the law prescribed its target date for the completion of the LAD process. It emphasizes the urgency of the implementation of the program. DOJ Opinion No 59, Series of 201311 is instructive in this regard. It states:

11 Dated July 9, 2013.


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“It has been held that the difference between a mandatory and a directory provision is often determined on grounds of expediency. And where a provision embodies a rule of procedure rather than one of substance, the provision as to time will be regarded as directory only notwithstanding the mandatory nature of the language used.12

An examination of Section 7 of R.A. No. 6657, as amended, would disclose that its provision is more procedural than substantive in nature and its evident objective is expediency. It prescribes a schedule of implementation to dramatize the urgency of the CARP which must be implemented immediately and completed, ideally within the time frame prescribed by law.

It is true that Section 7 of R.A. No. 6657, as amended, uses the word ‘’shall,” which is generally interpreted to be mandatory in character.13

However, it is well-recognized that the ordinary acceptation of “shall” and “may” as being obligatory and permissive, respectively, is not an absolute and inflexible criterion.14 Provisions as to time will generally be construed as directory if there are no negative words restraining the doing of the act afterwards.15”

12 DOJ Opinion No. 9, Series of 1997 and No. 59, Series of 2013, citing Marcelino vs. Cruz, Jr., 121 SCRA 51.13 DOJ Opinion No. 9, Series of 1997 and No. 59, Series of 2013, citing Giao vs. Figueroa, 94 Phil 1022.14 DOJ Opinion No. 9, Series of 1997 and No. 59, Series of 2013, citing Vda. De Mesa vs. Mencias, 18 SCRA 53315 DOJ Opinion 1997 and No. 9, Series of 59, Series of 2013, citing Phil. Association of Free

Labor Union vs. Sec of Labor, 77 SCRA 40.



What is the implication of the DAR’s inability to issue NOCs after June 30, 2014?

• On June 30, 2014, the authority of the DAR to issue NOCs to private agricultural lands covered under agrarian reform has expired. This means that DAR, temporarily, cannot proceed with the land acquisition and distribution of agricultural lands without NOC as of 30 June 2014, until an executive/legislative, and/or judicial action enables DAR to issue new NOCs.

• The issuance of an NOC starts the process of LAD to transfer the land ownership to qualified ARBs. It informs the landowner that his/her property is being acquired under the agrarian reform program as well as the remedies available to him/her under the law. Once the NOCs have been served/issued to landowners, DAR can initiate the LAD process.16

• If DAR is unable to issue NOCs, it cannot acquire and distribute the more than 600,000 hectares of private agricultural land still to be covered and distributed to ARBs. Qualified beneficiaries who pin their hopes on having better lives through cultivating and owning their lands are deprived of their right to a decent living.

16 http://www.dar.gov.ph/notice-of-coverage, August 31,2017.



What are emerging concerns17 in DAR’s lack of mandate to issue NOCs?

• Increasing Erroneous Coverage

The DAR in Negros Occidental cites the non-passage of the NOC bill18 as a major factor for the delay and recalibration of their targets. DAR officials say many NOCs issued before the June 30, 2014 deadline were defective. After further validation, DAR discovered that there are errors in the technical descriptions of the published NOCs. The discrepancies vary from the title numbers, location of the property and name of the registered landowners.

Among the reasons cited were old titles transferred to smaller landholdings and named after heirs or corporations; some NOCs not properly served to landowners prior to publication; some MAROs had no official documentation of the landowners’ refusal to accept NOCs before publication.

Upon determination that erroneous NOCs have been issued, the DAR halts the process of the LAD. In most instances, their remedy is to cure the defect by issuing new NOCs. This becomes problematic since NOCs can no longer be issued by DAR, after June 30, 2014.

In Negros Occidental, out of 10,000 hectares covered by KAISAHAN19 assisted areas, ten per cent (10%), or 1,000 hectares were identified to have been issued with defective

17 What now For Agrarian Reform Implementation in the Duterte Administration?, Policy Brief, ILC-NES in the Philippines, August 2017.18 The NOC bill is a legislative proposal to the 17thCongress, which seeks to amend RA 9700. It allows the DAR to issue NOCs to CARP covered landholdings. In this bill DAR’s mandate to issue NOCs shall continue until completion of the CARP. In the House of Representatives, Reps. Kaka Bag-ao, Tom Villarin and Teddy Bguilat are the principal sponsors of the NOC Bill. In the Senate, Senators, Rissa Hontiveros and Gringo Honasan are the proponents of the said bill.19 Based on KAISAHAN database as of December 2016.



NOCs. Coverage and distribution of these lands are indefinitely suspended, until DAR recovers its mandate to issue NOCs.

In areas where coverage cannot proceed, owners of landholdings with defective NOCs circumvent the CARP by converting the land to non-agricultural uses. Other landowners subdivide the property and transfer the same to the heirs or sell them to interested buyers.

While DAR waits for either an executive or legislative action that will allow the agency to proceed with NOC issuance and complete the LAD process, the lands subject to CARP coverage are slowly being taken from the farmers.

• “Chop-chop” of titles to justify erroneous NOCs

Some landowners or their heirs resort to subdividing the original lands covered by CARP and have them titled into smaller parcels under the name of the heirs. Hence, the NOC issued for the original title will now be contested by the owners of the smaller parcels of land. This strategy has been more commonly referred to as ‘chop-chop’ titles.

What happens to the coverage and distribution of landholdings that have been issued with NOCs before June 30, 2014 but have not yet been completed before the said date?

• Once the NOC is issued on a landholding, all the succeeding processes leading to the transfer of ownership of the CARP covered land to qualified beneficiaries shall continue until its completion, even beyond June 30, 2014.

• Section 30 of RA 9700 provides that:

“Section 30. Resolution of Case. - Any case and/or proceeding involving the implementation of the provisions of Republic Act No. 6657, as amended, which



may remain pending on June 30, 2014 shall be allowed to proceed to its finality and be executed even beyond such date.”

• It is clearly stated in Section 30 that “proceedings involving the implementation of the provisions of RA 6657, as amended, which may remain pending on June 30, 2014 shall be allowed to proceed to its finality and executed even beyond such date.”20 This covers the entire LAD process under the CARP.

What happens to cases pending in the DAR after June 30, 2014?

• As enunciated in the above-quoted provision, any case involving the implementation of CARP which may remain pending on June 30, 2014 shall be allowed to proceed until its finality. Thus, once cases have been filed related to or involving the implementation of the provisions of R.A. 6657, these will proceed until they reach finality.

• The legislative intent of Congress in formulating Section 30 of RA 9700 is to have all pending cases or proceedings involving the implementation of CARPER as of June 30, 2014, to proceed until finality even beyond the said date.21 Congress thus, prevented situations wherein cases pending as of June 30, 2014 are abandoned without reaching their conclusion.22

20 DOJ Opinion No. 59, Series of 2013.21 DOJ Opinion No. 60, Series of 2013.22 DOJ Opinion No. 60, Series of 2013.



What happens to the other components of the CARP (Agrarian Justice Delivery and Provision of Support Services) after June 30, 2014?

• The Agrarian Justice Delivery and Support Services are essential components of the CARP and shall continue after June 30, 2014.

• “The implementation of the CARP, being both eminent domain and social justice legislation, would inevitably give birth to some controversies between its participants. And so, the resolution of these controversies and the delivery of free legal assistance to the CARP participants are essential in order to achieve the objectives of the CARP.23“

• “The support services delivery function was meant to exist for as long as the planning and implementation of land acquisitions and redistributions have not yet been completed. The function of the SSO24 co-exist with the implementation of the actual acquisition and redistribution process. Too, it would serve no practical purpose if the support services delivery function of the DAR would terminate by June 30, 2014 while CARP has not yet been fully implemented. A more logical interpretation then would be that the support services delivery function of the DAR will carry on with its mandate until it has fully reached its objective, even if it would go beyond June 30, 2014. ”25

23 DOJ Opinion No. 60, Series of 2013.24 Support Services Office of the DAR25 DOJ Opinion No. 60, Series of 2013.

DAR ImplementingRules and

Regulations

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dar implementing rules and regulations


Introduction

Republic Act 9700 which amended RA 6657 provides for, among others, the continuing acquisition and distribution of agricultural lands

covered under the CARP. Subsequently, DAR issued AO 2 Series of 2009 to govern the rules and procedure of the LAD process.

In 2011, the DAR issued AO 7 Series of 2011, which amended AO 2 Series of 2009. It aimed to streamline the process and strengthened the due process requirement for the CARP coverage. This was further amended by AO 3 Series of 2012.26

Since then, various AOs have been issued amending the specific provisions of AO 7 Series of 2011 and AO 3 Series of 2012, in response to the continuing challenges in the implementation of the LAD. Notable of these amendments is AO 5 Series of 2017, which among others, allowed the LAD process to continue until the installation of farmers for landholdings with pending protests on the coverage and/or petitions for exclusion or exemption. This amended Section 29 of AO 7 Series of 2011 which permitted the continuance of the LAD process only until the issuance of the Memorandum of Valuation (MOV).

The LAD process is an important component of the CARP. In assuming its responsibility to complete the CARP, the DAR is called to fulfill its duty consistent with the precepts of social justice, equity and the common good.

26 Prefatory statement, AO 3, Series of 2012.



ao NO. 07, SERIES OF 2011,AS AMended

Revised Rules and Procedures Governing the Acquisition and Distribution of Private Agricultural

Lands under Republic Act No. 6657, As Amended

What is Administrative Order No. 07, Series of 2011(AO 7) all about?

AO 7, as amended, provides the rules in the acquisition and distribution of private agricultural lands enumerated in Section 4 of Republic Act (R.A.) 6657, as amended by R.A. 9700 (also known as CARPER).

Is AO 7 applicable even to landholdings already with Notice of Coverage (NOC) at the time of its issuance?

Yes. AO 7 is the applicable rule, provided that the validity of any and all acts undertaken are governed by the rules prevailing at the time the said acts were made.

How are private agricultural lands acquired under AO 7?

The modes of acquisition under AO 7 are: A. Compulsory Acquisition (CA); and B. Voluntary Offer to Sell (VOS).

What happened to the Voluntary Land Transfer (VLT) mode of acquisition?

The VLT mode was removed under CARPER. Only those landholdings submitted for VLT on or before June 30, 2009 can be distributed using the VLT mode.



CA CAVOS vltx

LANDS COVERED UNDER CARPER

How will I know whether a particular landholding will be covered by DAR?

DAR prepared a list of agricultural lands to be acquired and distributed from July 01, 2009 to June 30, 2014. This is contained in the CARPER LAD BALANCE (LAD Balance) that was officially adopted by the Presidential Agrarian Reform Council (PARC) Executive Committee in 2010.

Does this mean that private agricultural lands that were excluded from the LAD Balance will no longer be covered by DAR?

No. DAR recognizes the need to update the approved LAD Balance in view of perceived addition and deduction of landholdings. Related thereto, it came up with a set of guidelines in the use, treatment and updating of the said LAD Balance contained in DAR Memorandum Circular 08, Series of 2010.

If I know a particular landholding that must be included in the LAD Balance, what are the necessary steps for its inclusion?

Landholdings may be included in the LAD Balance upon the issuance of the following:



A. Memorandum to the DAR Provincial Office (DARPO) by the Municipal Agrarian Reform Officer (MARO) requesting for an addition of landholdings;

B. Recommendation from the Provincial Agrarian Reform Officer (PARO);

C. Resolution by the Provincial Agrarian Reform Coordinating Committee (PARCCOM);

D. Resolution by the LAD Balance Technical Review Committee recommending its inclusion; and

E. Approval by the PARC Executive Committee.

EXCLUSION

What are excluded from CARPER coverage?

Excluded from the coverage are the following:

A. All undeveloped lands with eighteen percent (18%) slope and over;

B. All lands duly classified by the proper local government unit (LGU) as commercial, industrial or residential as of June 15, 1988;

C. All ancestral lands/domains that may be identified in accordance with the rules that may be jointly issued by the DAR, DENR, Land Registration Authority (LRA), and the National Commission on Indigenous People (NCIP);

D. Retention areas granted to landowners who exercised their retention rights; and

E. All agricultural landholdings of a landowner with an aggregate size of five (5) hectares or less.



EXEMPTION

What are exempted from CARPER coverage?

The following are exempted:

A. Parks;B. Wildlife;C. Forest reserves;D. Reforestation;E. Fish sanctuaries and breeding grounds;F. Watersheds;G. Mangroves;H. National defense;I. School sites and campuses, including experimental farm

stations operated by public or private schools for educational purposes;

J. Seeds and seedlings research and pilot production centers;K. Church sites and Islamic centers appurtenant thereto;L. Communal burial grounds and cemeteries;M. Penal colonies and penal farms actually worked by the inmates;N. Government and private research and quarantine centers;O. Fish ponds and prawn farms; andP. Livestock, poultry, and swine-raising since June 15, 1988.

May previously exempted agricultural lands still be covered?

Yes. If an agricultural land is discovered not to be actually, directly, and exclusively used for the purpose it was exempted, the PARO shall immediately issue an NOC for the subject landholding or portions thereof.



CONVERSION

Can DAR cover landholdings with pending application for land use conversion?

Yes. Absent any final order granting an application for conversion, no act or attempt directed to changing the use of the land shall affect the coverage.

How about those with conversion orders?

Generally, DAR will not cover those landholdings with conversion orders. However, if the following circumstances occur due to the fault of the applicant, the same will be covered:

A. Failure to fully implement the conversion plan within five (5) years from the issuance of the DAR conversion order; or

B. Violation of any of the conditions of the conversion order.

RECLASSIFICATION & FORECLOSURE

Can agricultural lands reclassified to non-agricultural uses before June 15, 1988 still be covered by DAR?

Yes, if the LGU subsequently reclassified the land as agricultural. Any exemption order therein shall be reviewed by the Regional Director (RD) to determine whether the subject landholding is agricultural in land use, and if found as such, the exemption order shall be revoked and the corresponding NOC be issued.



What will happen to foreclosed agricultural lands?

The DAR shall take possession of awarded agricultural lands which where foreclosed for failure to pay the amortization for three (3) aggregate years and were not redeemed within the two (2) year redemption period. The LBP shall certify the land’s availability for reallocation and the DAR shall identify new agrarian reform beneficiaries (ARBs).

SCHEDULE OF ACQUISITIONAND DISTRIBUTION

Will DAR cover landholdings identified in the LAD Balance all at the same time?

No. A schedule of acquisition is provided by CARPER, to wit:

A. From July 1, 2009 to June 30, 2012

Phase 1

a. All single private agricultural lands above 50 hectares, with or without NOCs

b. All large aggregate private agricultural lands with a total area greater than 50 hectares with NOC as of Dec. 10, 2008

c. Following lands, regardless of size:i. Presidential Decree 27 (“PD 27”) lands (rice and corn) ii. All idle or abandoned agricultural lands iii. All lands offered under VOS iv. All lands covered by VLT submitted on or before

June 30, 2009 v. All lands foreclosed by government financial

Institutions vi. All lands acquired by Presidential Commission on

Good Government (PCGG) vii. All other government owned alienable and

disposable (A&D) agricultural lands



B. From July 1, 2012 to June 30, 2013

Phase 2-A

a. All remaining large, single, private agricultural lands with an area of 24 to 50 hectares, with or without NOC

b. All private agricultural lands with an aggregate area of 24 to 50 hectares with NOC as of Dec. 10, 2008

c. All agricultural lands provided in the preceding phase yet to be completed

C. From July 1, 2013 to June 30, 2014

Phase 3-A

a. All private agricultural lands with an aggregate area of above 10 hectares up to 24 hectares with respect to the excess of 10 hectares

b. All agricultural lands provided in the preceding phases yet to be completed

Phase 2-B

a. All remaining private agricultural lands with an aggregate area in excess of 24 hectares, with or without NOC

b. All agricultural lands provided in the preceding phases yet to be completed



Under what phase will co-owned lands be included?

Landholdings that are still co-owned due to non-settlement of the estate of a landowner who died on or after June 15, 1988, the phase shall be based on the aggregate size of all his landholdings.

If it is co-owned due to some other reason, insofar it became co-owned before June 15, 1988, the rule is as follows:

A. If the aggregate size of all the landholdings of each co-owner belongs to the same phase, the phase shall be based on aggregate size of all the landholdings of one of the co-owners

B. If the aggregate size of all the landholdings of each co-owner belongs to different phases, the co-owners shall be treated as a single LO for the determination of the phase for the landholding that will be covered.

Can DAR cover landholdings ahead of their schedule?

Yes. It can be covered ahead of schedule if declared by the PARC or the PARC Executive Committee, upon the recommendation of the PARCCOM, as a Priority Land Reform Area and upon completion of the LAD targets of the province where it is situated.



Prior to acquiring any private agricultural land, it is the responsibility of the DAR to identify the owners of the subject landholding and to ascertain whether the land is within the A&D areas. It is only after the validation based on ownership documents and projection on the DENR Land Classification Maps can DAR commence with the coverage.

As there are two (2) modes of acquisition under AO 7, the persons responsible in acquiring the documents for validation as well as the form of notices are also different.

COMPULSORY ACQUISITION

1. Identification and Projection of Landholdings

What should be undertaken prior to acquiring any agricultural land?

Landholdings subject to acquisition shall be validated based on ownership documents and on the projection of DAR on DENR Land Classification Maps to determine whether or not the areas are A&D.

How can ownership be validated?

Tagged as the three (3) basic documents, the following validates the identity of the LO and the landholding:

A. Certified true copy of the land title;B. Certified true copy of the tax declaration; and C. Copy of the approved survey plan or sketch plan certified by a

licensed geodetic engineer (GE).



ADDITIONAL BASES FOR IDENTIFYING THE REGISTERED LAND OWNER (RLO) FOR PURPOSES OF

ISSUING THE NOC

AO 1 Series of 2014, amended the 2nd paragraph of Section 15, AO 7 Series of 2011 on the issuance of NOCs. It provides that:

“In case the RLO stated in the Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT) is different from that stat-ed in the Tax Declaration, the NOC shall be served to the RLO stated in the TCT or OCT.

In case the Register of Deeds (ROD) cannot issue to the DAR a certified true copy of the TCT/OCT of a particular landhold-ing within thirty (30) days from receipt of the written request of the latter, or in case the ROD or the Land Registration Au-thority (LRA) has certified that the TCT/OCT is missing from its records, any or more of the following shall be sufficient as basis for identifying the RLO for purposes of issuing the NOC:

1. Photocopy of the subject TCT or OCT already in the pos-session of the DAR since prior to 1 July 2010;

2. Tax Declaration of the subject landholding indicating the name of the landowner;

3. A certification from the ROD that the OCT/TCT is missing from their records, provided that the technical descrip-tion and the last known registered owner is indicated thereon; and/or

4. Public documents, such as a notarized deed of sale or donation, provided that the same states the name of the landowner and the location and technical description of the landholding.

In case the RLO identified in any of the aforementioned doc-uments are different from each other, the NOC shall be issued to all of said persons as owners for purposes of CARP cover-age, subject to the determination of who has a better right on the just compensation proceeds by the proper tribunal.”



what will dar do after the determination that the subject landholding is classified as a&d?

Based on the projection by the DAR on DENR Land Classification Maps, DAR shall request for certification of A&D from DENR.

Is validation limited to desk research?

No. The MARO shall conduct a preliminary ocular inspection of the landholding in order to determine the physical status, actual land use, and the presence of at least three (3) monuments or natural boundaries therein.

2. Issuance of NOCs

Upon completion of the required documents for validation, how will the acquisition proceed?

Through the issuance of NOCs by the DARPO.

What is an NOC?

An NOC is a notice issued by the DAR to the LO advising the latter that the subject property is being acquired under the agrarian reform program of the government. The NOC also advices the LO of the period within which –

A. To file a (i) protest on the coverage; (ii) manifestation for exemption or exclusion; or (iii) manifestation to exercise the right of retention;

B. To nominate preferred beneficiary/ies; andC. To submit a list of agricultural lessees, regular and seasonal

farmers, and or his/her tenants.



To whom shall the NOC be issued?

The NOC shall be issued to the land owner stated in the TCT or OCT or, in case of untitled private agricultural land, in the tax declaration.

Who are authorized to receive the NOC?

If the registered landowner(s) is/are: Service shall be made upon:

A natural person Him/her

Co-ownersEach and every registered co-owner, unless one is specifically authorized to receive for the others

MinorHis/her father and/or mother, or to the person who has legal custody of the owner

What if the names appearing in the OCT/TCT and tax declaration are different?

The NOC shall be issued to the registered land owner whose name is stated in the TCT or OCT, as the case may be.



If the registered landowner(s) is/are: Service shall be made upon:

Insane or Incompetent

His/her guardian if he/she has one, or, if none, to his/her guardian ad litem whose appointment shall be applied by DAR

Entity without juridical personality

Any one of the registered land owner or upon the person in charge of the office maintained in such name

Domestic private juridical identity

President, managing partner, general manager, corporate secretary, treasurer or in-house counsel

Heir/s of a deceased registered land owner

If there is a pending case on the settle-ment of estate, service shall be made to the executor or to the administrator of the estate. If none is pending, or if there is no executor or administrator, service shall be made upon all known heirs through publication.

When should the NOCs be issued?

Preferably, the NOCs shall be issued not later than 180 days from the first day of the scheduled date of acquisition.



How are NOCs served upon the Landowners?

The modes in serving NOCs are:

A. Personal service;

B. Substituted service;

C. Extra-territorial service; and

D. Publication.

How is personal service effected?

Personal service is effected when the person authorized to receive affixes his signature or thumb mark on the receiving copy of the NOC, in the presence of a witness who also affixes his signature.

What if the Land owner refuses to receive the NOC?

When the person authorized to receive is not present or refuses to receive the NOC, the MARO shall immediately avail of substituted service.

How is substituted service effected?

This is done by leaving a copy of the NOC at the residence of the person authorized to receive with some person of suitable age and discretion residing therein, or by leaving a copy at the land owner’s office or regular place of business with some competent person in charge. Thereafter, the PARO shall inform the Bureau of Land Acquisition and Distribution (BLAD) at the DAR Central Office and send a copy of the NOC for publication.



How can service be effected if the land owner residence is outside the country?

If the last known address is outside the territory of the Philippines, the MARO shall resort to extra-territorial service where a copy of the NOC will be sent abroad through registered mail and sent to Bureau of Land Acquisition and Distribution (BLAD) for publication.

Is publication of NOC required at all times?

No. Publication is necessary only if –

A. The land owner’s residence is unknown

B. Substituted service or extra-territorial service was availed

C. Service will be made upon the heirs of a deceased land owner with no executor/administrator or no pending settlement of estate

What are the proofs of publication?

The affidavit of the editor-in-chief or circulation/ advertising manager attests to the fact of said publication, and a copy of the published NOCs.

is posting of NOCs required in all circumstances?

Yes. Posting of the NOC at the subject landholding and at the bulletin boards of the Municipal/City Hall and Barangay Hall where the property is located for seven (7) days is required. Waterproof and environmental- friendly materials measuring two (2) by three (3) feet shall be used for postings at the subject landholding.



What information should be indicated in the publication?

1. Statement of the coverage of the subject landholding under CARPER based on the prioritized phasing;

2. OCT/TCT/ Latest tax declaration number/s and the corresponding area;

3. Complete name/s of land owners and last known address, if available;

4. Location of the subject landholding (barangay, city/municipality, province); and

5. The period of land owners to –i. Nominate preferred beneficiary/ies; ii. Submit a list of the agricultural lessees, regular

and seasonal farmworkers, and/or tenants in the landholding;

iii. File a protest on coverage, manifestation to exercise right of retention, exemption/ exclusion

6. Consequences of LO’s failure to exercise the aforesaid rights within the prescribed period.

What is considered AS the date of receipt for NOCs that were not served personally?

The date of posting or the date of publication, whichever comes later, shall be deemed the date of receipt.



VOLUNTARY OFFER TO SELL

A. Submission of Letter-OfferWhat does the letter-offer under the voluntary offer to sell mode contain?

The letter-offer states that the landowner or his authorized representative voluntarily offers the subject property for sale to the government in support of the agrarian reform program. It specifically provides the proposed amount for the subject property, the intention to exercise the right of retention and the names of preferred beneficiary/ies, if applicable.

Who has the responsibility of gathering the three (3) basic documents?

The landowner is required to submit the said documents together with the Landowner Information Sheet. The VOS application shall not be accepted until all the basic documents are complied with by the landowner.

Can an LO offer only a portion of the landholding?

No. An LO who wishes to offer his landholding under VOS must offer the entire area of the same parcel of land, subject to his retention right.

Can VOS be withdrawn?

Yes, provided that the letter-offer has not yet been accepted by DAR. Once withdrawn, the landholding is automatically covered under CA.



B. Service of Letter of AcceptanceIs NOC required under the VOS mode?

No. The Letter of Acceptance also serves as an NOC.

When is a letter-offer deemed accepted by DAR?

A VOS is deemed accepted upon receipt of the landowner of the PARO’s Letter of Acceptance. The Letter of Acceptance shall be served in the same manner as the NOC.

Is shifting from CA to VOS allowed?

A landowner who received an NOC for his landholding under CA may be allowed to shift to VOS provided that the claim folder for the subject land has not yet been received by the Claims Processing, Valuation and Payment Division (CPVPD) of the LBP.

What will happen if the landowner who shifted to VOS failed to nominate a preferred beneficiary and/or to submit a list of farmers and/or tenants within the prescribed period from receipt of NOC?

The landowner is disqualified to nominate his preferred beneficiary and is deemed to have waived his right to attest.



LANDOWNER’S OPTIONS The options available to the landowners and the period within which to exercise the same depend on the mode of acquisition. Those who applied under the VOS mode, for example, are deemed to have waived certain rights that may be exercised by the landowners under the CA mode.

What can the landowner do upon receipt of NOC?

Within a non-extendible period of thirty (30) days from receipt, the landowner may do the following:

A. Nominate preferred beneficiary/ies;B. File a protest from coverage;C. File a manifestation for exemption or exclusion from coverage;D. File a manifestation to exercise the right of retention.

How about landowners who voluntarily offered their lands?

For landholdings under VOS, the landowner shall exercise his right of retention and right to nominate preferred beneficiaries by submitting a notarized notice thereof at any time prior to the completion of service of the Letter of Acceptance.

What will happen if the landowner fails to act within the prescribed period?

Failure to act within the given period shall be construed as a waiver on the part of the landowner of the right to protest coverage, to nominate their preferred beneficiaries, to file a petition for exemption or exclusion from CARP coverage, and/or to exercise the right of retention, as the case may be.

All protests, nominations and minfestations/petitions made after this period shall no longer be accepted.



NOMINATION OF PREFERRED BENEFICIARIES

Who can be nominated as preferred beneficiaries?

The landowner may nominate his children as preferred beneficiaries, provided that the following are met:

A. Filipino citizen;B. At least fifteen (15) years of age as of June 15, 1988; andC. Actually tilling or directly managing the farm as of the time of

the conduct of the field investigation of the landholding.

What is the advantage of becoming a preferred beneficiary?

It means that the identified beneficiary will be given preference in the distribution of the subject land. In no case, however, may the distribution deprive the agricultural lessees and tenants of being awarded the portion of the landholding they are actually tilling, which in no case shall be more than three (3) hectares.

COVERAGE / EXEMPTION / EXCLUSION

Is the manifestation for exemption/exclusion the same as the application for exemption and petition for exclusion?

manifestation application / petition≠No. The manifestation only states the landowner’s intention to file an application or petition.



The manifestation can be filed jointly or separately with the application/ petition. In case of the latter, the landowner has sixty (60) days from receipt of the NOC within which to file the required pleadings.

What is the period allotted for landholdings under VOS?

There is no allotted period because the landowner is deemed to have waived his right to file such an application/petition upon DAR’s acceptance of his offer.

Can a protest from coverage, application for exemption or petition for exclusion stop the LAD process27?

No. Despite the pendency of a Protest against Coverage, a Petition for Exemption or Exclusion, or other agrarian law implementation (ALI) case, the LAD shall continue until all the identified ARBs have been successfully installed on the awarded land.

However the process will be suspended by the following:

A. Cease and Desist (CDO) or Status Quo Order from the Secretary;B. Temporary Restraining Order (TRO) or Preliminary Injunction

from the Supreme Court

27 Section 29, AO 7 Series of 2011, as amended by AO 5 Series of 2017.



Points to Ponder

Until when can the LAD process continue if there are protests on the coverage and/or petitions for exemption or exclusion of the CARP covered landholdings?

AO 5 Series of 2017 amending Section 29, DAR AO 7 Series of 2011

Section 29 of AO 7 Series of 2011 is one of the controversial provisions of the LAD implementing rules and regulations. Said section provides that:

“Section 29. Petition for Protest of Coverage and/or Petition for Exemption or Exclusion Not Bar to Continue LAD Process. Despite the pendency of a protest against coverage or a petition for exemption or exclusion, the land acquisition process shall nevertheless continue until the issuance of the Memorandum of Valuation (MOV) with the attached Land Valuation Worksheet (LVW) by the LBP, unless otherwise suspended sooner or through a Cease and Desist Order (CDO) by the RD or the Secretary,

xxx xxx xxxx”

This is considered a step back from its predecessor, AO 2, Series of 200928. In cases where there are petitions for protests on the coverage and/or Petitions for Exemption or

28 Part A 14, Chapter IV on Statement of Policies provides that:

Notwithstanding a protest of coverage or an application for exemption or exclu-sion by a landowner, the processing of the claim folder, including valuation and the issuance of Certificate of Deposit (COD) by the Land Bank of the Philippines (LBP) and the transfer of title to the Republic of the Philippines, shall continue un-less the Regional Director or the DAR Secretary, as the case may be, suspends the processing based on preliminary findings on grounds for exemption or exclusion or the Supreme Court issues a Temporary Restraining Order (TRO) in the process-ing of the claim folder.”



Exclusion of the landholding, AO 2 Series of 2009 allowed the LAD process to proceed until ownership of land is transferred from the previous landowner to the Republic of the Philippines. On the other hand, Section 29 of AO 7, Series of 2011 as amended provides that the LAD process will continue only until the issuance of the MOV (or the initial valuation of the covered landholdings). With the process limited until the issuance of the MOV, DAR prevents itself from taking control and possession of the CARP covered land. This has an implication in the FBs’ exercise of their usufructuary right.

With the LAD process suspended until the issuance of the MOV, it cannot proceed to the next steps leading to the issuance of the Certificate of Deposit (COD). The DAR is prevented from issuing the Notice of Land Valuation and Acquisition (NLVA) to the landowner and transmitting an Order to Deposit to the LBP. The COD will be issued by the LBP after its receipt of the PARO’s Order to Deposit the landowner’s Compensation29.

Under the existing rules, the ARBs have the right of usufruct over the land from the time the DAR takes constructive or actual possession of the same until the award of a CLOA30. The issuance of the COD marks the period when the DAR shall take possession of the landholding covered under the CARP31. Pending the award of the CLOA and for the purpose of establishing usufructuary rights, the DAR shall immediately inform the ARBs, upon the issuance of the Certificate of Deposit (COD) and upon actual possession of the land32, that they have been identified and qualified to receive the land,

However, for CARP covered lands with protests and/or petitions for exemption or exclusion, however, the DAR will

29 Sections 77 and 78, DAR AO 7 Series of 2011, as amended.30 Section 100, DAR AO 7, Series of 2011, as amended.31 Section 81, DAR AO 7, Series of 2011, as amended.32 2nd Paragraph, Section 100, DAR AO 7 Series of 2011, as amended.



not be able to take possession of the land, until the said protest/and or petitions have been “denied by the RD, or if appealed, by the Secretary, or if further appealed, by the President of the Republic of the Philippines, unless otherwise suspended by the Supreme Court” 33.

Last August 2017, the DAR issued AO 5 Series of 201734, which among others, amended Section 29, AO 7 Series of 2011. AO 5 Series of 2017 provides that “the submission or filing of a Petition for Protest of Coverage and/or Petition of Manifestation for Exemption or Exclusion shall not stop the continuation or completion of the LAD process which includes the installation of Agrarian Reform Beneficiaries (ARBs).35’’ Further, it states that “despite the pendency of a Protest against Coverage, a Petition for Exemption or Exclusion, or other agrarian law implementation (ALI) case, the LAD shall continue until all the identified ARBs have been successfully installed on the awarded land, unless otherwise suspended by the Secretary thru a Cease and Desist Order (CDO) or Status Quo Order or by the Supreme Court (SC) thru Temporary Restraining Order (TRO) or Preliminary Injunction36.”

AO 5 Series of 2017 allows the LAD process to continue until the installation of the ARBs for CARP covered lands with protests and/or petitions for exemption or exclusion. This amends Section 29 of AO 7 Series of 2011 which allows the LAD to proceed only until the issuance of the MOV.

33 2nd paragraph, Section 29, DAR AO 7 Series of 2011, as amended34 New Implementing Guidelines Governing the Compulsory Acquisition of All Agricultural Lands with Pending Proceedings or Cases35 IV B of AO 5 Series of 201736 IVC of AO 5 Series of 2017



AO 5 Series of 2017 amending Section 16 of AO 9, Series of 201137

Section 16 of AO 9, Series of 2011 provides that if there is a protest against coverage or a petition for exemption or exclusion pending at the time of the Perimeter Segregation Survey (PSS) over landholdings which are problematic as defined in Section 6 of AO 9, the DAR shall hold in abeyance the survey activities until the protest against the coverage or petition for exemption or exclusion has been denied by the RD, or if appealed, by the Secretary. This is amended by AO 5, Series of 2017 which allows the PSS notwithstanding the filing of a protest against coverage or a petition for exemption/exclusion or other ALI cases38.


Section 15 of AO 11, Series of 2014 provides that:

“Section 15. Immediate Coverage Upon Favorable Decision. – In all cases where the RD grants the request or petition for coverage the PARPO shall immediately place or cover the subject landholding without a need for issuing a Notice of Coverage (Notice) under the CARP, notwithstanding the pendency of an appeal before the Secretary, but only up to the issuance of the Memorandum of Valuation (MOV) with the attached Land Valuation Worksheet (LVW) by the LBP, unless otherwise suspended

37 AO 9 Series of 2011 provides the Rules for the Survey and/or Field Investigation of Landholdings Where the Department of Agrarian Reform and the Land Bank of the Philippines are Denied Entry Thereto.38 IV H of AO 5 Series of 2017.39 AO 11 Series of 2014 provides the Procedure for and Guidelines in the Handling of All Petitions for Coverage Under the Comprehensive Agrarian Reform Program (CARP).



sooner through a Cease and Desist Order (CDO) by the Secretary, provided, however, that the RD shall ensure that the landowner is properly served with a copy of the decision in accordance with the pertinent rules.”

This is amended by AO 5 Series of 2017, which allows the LAD process to proceed until the installation of the identified ARBs, despite the pendency of a protest on the Coverage of the landholding under the CARP.

Please note that AO3 series of 2017 amended the Rules for ALI cases. (Please refer to Annex: Administrative Order No. 03, Series of 2017)


AO 5 Series of 2015 is an Administrative Order amending AO 5 Series of 2014 (Rules and procedure for the preliminary processing of the LAD involving private agricultural lands with Exemption/Exclusion or Conversion Orders revoked by the DAR.)

Section 1 of AO 5, Series of 2015 amended Section 3 of AO 5 Series of 2014, pertaining to the issuance of the Notice to Proceed. Said section provides:

“Section 3. Notice to Proceed. – Upon receipt by the PARPO of the directive to proceed with the preliminary processing, he shall immediately initiate the process of the issuance of a Notice to Proceed particular to this Order.

40 AO 5 Series of 2015 amended AO 5 Series of 2014, which provides for the Rues and Procedure for Preliminary Processing of Land Acquisition and Distribution of Private Agricultural Lands Upon Revocation by the Department of Agrarian Reform of Exemption/ Exclusion Conversion Order



The Notice to Proceed shall be issued in the same manner, and to the same persons, as that of a Notice of Coverage.

The Notice to Proceed shall inform the landowner that the DAR shall proceed with the preliminary processing of the acquisition and distribution of the subject land until the issuance of the Memorandum of Valuation with the attached Land Valuation Worksheet by the LBP, and that it shall proceed thereafter should the Office of the President affirm the decision of the Office of the Secretary in its decision to revoke the Exemption/Exclusion or Conversion Order.

XXX XXX XXX ”

AO 5 Series of 2017 allows the preliminary processing of the acquisition and distribution of the land until the installation of the ARBs, notwithstanding the pendency of an appeal to the OP unless otherwise suspended by the Secretary, OP or the SC41.

41 IV-G of AO 5 Series of 2017.



RETENTION

Is the manifestation to exercise right of retention the same as petition to exercise right of retention?

No. The manifestation only states the landowner’s intention to exercise his right of retention.

The manifestation can be filed jointly or separately with the petition. In case of the latter, the landowner has fifteen (15) days from the filing of such manifestation within which to exercise such right.

What will happen if Landowner fails to exercise his right of retention within the specified period?

Failure to choose within the prescribed period shall automatically authorize the MARO to choose the area to be retained.

Are the heirs of a deceased landowner entitled to the right of retention?

Yes, but the heirs of the deceased landowner who died after 15 June 1988 are only entitled to the five (5) hectare retention area.

Are spouses entitled to separate retention limits?

The answer depends on the property regime of the marriage.

ABSOLUTE COMMUNITY OF PROPERTY (ACP)

• Not more than five (5) hectares together



CONJUGAL PARTNERSHIP OF GAINS (CPG)

• Not more than five (5) hectares together, unless either or both are landowners in their own respective rights (capital and/or paraphernal)

COMPLETE SEPARATION OF PROPERTY

• Not more than five (5) hectares each

What will happen to tenants who choose to remain in the retention area?

They shall be leaseholders in the said land and shall not qualify as beneficiaries under CARP. This option must be exercised within a period of one (1) year from the time the landowners manifests his choice of retention area.

Are lands which are to be expropriated also subject to the retention limit?

No. Lands that are to be expropriated by LGUs shall not be subject to the five (5) – hectare retention limit. However, prior to the expropriation, the subject land shall first undergo the LAD process, and the ARBs shall be paid just compensation without prejudice to their qualifying as ARBs in other landholdings.



ARB IDENTIFICATION

The office of the MARO and the Barangay Agrarian Reform Council (BARC) are in-charge with (i) the information dissemination about the identification of ARBs; (ii) the conduct of screening process; and (iii) the posting and service of the required lists. For each posting, the MARO shall secure the necessary certifications from the appropriate government offices for inclusion in the Claim Folder.

ARB IDENTIFICATION

Who are eligible to become ARBs?

The minimum qualifications for an ARB are:

A. He must be a farmer/tiller who owns less than three (3) hectares of agricultural land;

B. A Filipino citizen;C. A resident of the barangay (or municipality if there are not

enough qualified ARBs in the barangay);D. At least fifteen (15) years of age at the time of the identification,

screening, and selection of farmer-beneficiaries; andE. Willing, able, and equipped with the aptitude to cultivate and

make the land productive.

For commercial farms or plantations, the applicant must be employed in the subject landholding in order to be deemed as a regular farmworker.

Who are not eligible to be beneficiaries?

The following are not qualified to be beneficiaries:

A. Landowner-Mortgagors, including their children, of foreclosed lands, where the redemption period has already expired;

B. Landowners who voluntarily offered their property;



C. Landowners who waived their right of retention;D. Farmworkers in commercial farms or plantations holding

managerial or supervisory positions as of the issuance of the NOC.

What is the initial basis for the identification of potential ARBs?

Within thirty (30) days from receipt of the NOC, the landowner is directed to submit a list of all his/her tenants, agricultural lessees, and farmers (regular and seasonal) at the time of its issuance. Said list shall be the initial basis for the identification of farmer beneficiaries.

What if the Landowner failed or refused to submit said list?

The MARO shall then conduct an initial determination of who are the qualified ARBs for the pertinent landholding.

When will the identification commence?

Within three (3) working days from receipt of the list or after the lapse of the thirty (30) day period for the submission, the MARO together with the BARC shall prepare the preliminary list of qualified ARBs clearly indicating therein their classification (i.e. tenants, regular farmworkers, etc.). The preliminary list shall be posted for seven (7) days at the subject landholding and on the bulletin boards of the Municipal/City Hall and Barangay Hall where the land covered is located.

Can both spouses qualify as ARBs?

Yes. Qualified beneficiaries who are husbands and wives may be entitled to three (3) hectares each, provided that they qualify as ARBs in their own individual rights and that their respective vested rights to the land have been duly established.



What does a preliminary list contain?

The preliminary list contains the names of the potential ARBs and instructions to –

A. Those listed to prove that they are qualified; andB. Those who believe that they are qualified but whose names were

not included to signify their intent to be included and prove that they are qualified.

Applicants have seven (7) days from the last date of posting within which to submit the essential documents to prove their qualification.

What documents do they need to submit?

Documents that will prove their –

A. Identity;B. Residency in the community where the landholding is located;C. Qualification as ARBs; andD. Interest to become ARBs.

Who will decide who among the applicants should be awarded with the land?

The MARO, together with the BARC or the Barangay Council (if there is no BARC), shall screen and select qualified ARBs. Within five (5) days after the selection, the BARC or the Barangay Council shall prepare, under oath, a Master List of qualified ARBs. The list shall be served to the landowner not later than fifteen (15) days from certification through registered mail.

What does a Master List contain?

The Master List contains (i) the names of the qualified ARBs listed according to prioritization; and (ii) notice to qualified ARBs that they will be required to –



A. Execute and sign the Application to Purchase and Farmer’s Undertaking (APFU); and

B. Manifest preference for individual or collective ownership. What is this order of prioritization?

Qualified ARBs shall be ranked in the following order:

A. Agricultural lessees and tenants;B. Regular farmworkers;C. Seasonal farmworkers;D. Other farmworkers;E. Actual tillers or occupants of public lands, only insofar as untitled

private agricultural lands are concerned; andF. Others directly working on the land.

This order shall be used in the determination of how the subject land will be divided among the potential ARBs.

as mentioned above, the Master List shall be served upon the Landowner. What is the purpose of such?

In order to give the landowner the opportunity either to attest to the veracity of the list or to file a written protest within fifteen (15) days from receipt.

SCREENING AND SELECTION OF FARMWORKER BENEFICIARIES (FWBs) FOR HACIENDAS, COMMERCIAL FARMS OR PLANTATION

AO 10 Series of 2014 amended AO 7 Series of 2011 with regard to its guidelines on the identification, screening and selection of farmworker beneficiaries (FWB) in haciendas, commercial farms or plantations. AO 10 Series of 2014 aimed to address issues and bottlenecks in the process



of FB screening and selection in commercial farms and plantations.

AO 10 Series of 2014 provides that ‘’all farmworkers who worked on the land on or after 15 June 1988, whether under the landowner or a civil law lessee (arriendador) shall be considered as potential beneficiaries in the Preliminary List of Potentional ARBs.42”

It further states that dismissed, terminated or retired farmworkers at the time of the farmworker beneficiaries identification, screening, and selection process can still be considered as potential beneficiary provided that43:

a. They are farmworkers on or after June 15, 1998;b. They meet all the qualifications provided in Section

22 of RA 6657, as amended; andc. They are willing and able to do farming.

Farmworkers with labor related cases will be considered as employed for purposes of identification and screening of qualified farmer beneficiaries.

Employment records (employee’s ID, payroll, SSS records etc) of the FWBs shall be submitted to the MARPO as proof of employment of the FWBs. In the absence of these records, an affidavit of two (2) disinterested persons shall be required from the FWBs as substitute proof of their employment in the landholding.

42 1st paragraph, AO 10 Series of 2014.43 2nd paragraph, AO 10 Series of 2014.



Can ARBs be disqualified?

Yes. ARBs can be disqualified on the following grounds:

A. Failure to meet the qualifications provided under Section 22 of RA 6657, as amended;

B. Voluntary execution of a waiver of right to become an ARB in exchange for due compensation, and such waiver has not been questioned in the proper government entity as of the effectivity of AO 7;

C. Deliberate and absolute failure of the ARB to pay an aggregate of three (3) annual amortization to the LBP and subsequent failure to exercise the right of redemption/repurchase within two (2) years, provided an amortization table has been issued to the ARB, and provided further that the amortization shall start one (1) year from the ARB’s actual occupancy;

D. Deliberate and absolute non-payment of three (3) consecutive amortizations in case of a VLT/direct payment scheme, provided that the ARB has been installed and is in actual possession of the land and provided further that the last proviso will not apply if the non-possession of the ARBs is attributed to his or her own fault;

E. With respect to commercial farms, termination from the service for cause as of the date of effectivity of AO 7, unless a complaint for illegal dismissal regarding the said termination is pending, in which case the termination must be affirmed with finality;

F. Voluntary resignation or retirement from the service, provided this was not attended by coercion and/or deception, and there is no case questioning said resignation or retirement by the applicant as of the date of effectivity of AO 7;



G. Misuse or diversion of financial and support services extended to ARBs pursuant to Section 37 of RA 6657, as amended;

H. Negligence or misuse of the land or any support extended by the government as provided in Section 22 of RA 6657, as amended;

I. Material misrepresentation of the ARB’s basic qualifications under Section 22 of RA 6657, as amended, PD 27, and other agrarian laws;

J. Sale, transfer, lease or any other form of conveyance by a beneficiary of the right of ownership, right to use or any other usufructuary right over the land acquired by virtue of being such beneficiary, in order to circumvent the provisions of Sections 27 and 73 of RA 6657, PD 27, and other agrarian laws;

K. Premature conversion by the ARB pursuant to Section 11 of RA 8435;

L. Final judgment for forcible entry or illegal detainer by persons who are originally not qualified beneficiaries as ARBs, the unlawful entry of which would have allowed them to avail the rights and benefits of an ARB;

M. With respect to foreclosed landholdings, the landowner thereof and/or his children, but only insofar as the same foreclosed landholding is concerned; and

N. Commission of any violation of the agrarian reform laws and regulations, or related issuances, as determined with finality after proper proceedings by the appropriate tribunal or agency.



Should Landowner file a protest, how long will it take before the Master List will be finalized?

No specific period provided except that the PARO shall conduct a compulsory arbitration within ten (10) days from receipt. The PARO’s decision shall be final insofar as the list is concerned.

What will be the implication if landowner fails or refuses to attest or file a protest within the given period?

It shall be construed as a waiver of his right to attest.

How about the ARBs? How will they know the contents of the Master List?

Copies of the Master List, as attested to by the landowner or decided by the PARO, shall be served upon all those named therein and to all persons listed in the preliminary list but are not included in the approved Master List. It shall also be posted for seven (7) days at the Barangay Hall where the landholding is located, and within the premises of the landholding. Should there be an error in the Master List, what can the concerned farmer beneficiary do?

Within fifteen (15) days after the posting of the Master List, any of the potential beneficiaries may file a written protest thereon. In such a case, the PARO shall conduct compulsory arbitration within ten (10) days from receipt of said protest to resolve the same. The parties concerned, specifically the persons to be excluded, shall be duly notified of the proceedings and the decision.

Are there limitations as to the authority of the PARO on this matter?



Yes. The authority of the PARO is specifically limited to protests and petitions on the ARB’s qualifications to be included in the Master List. Other issues related to ARB’s qualifications under specific issuances shall be filed as an agrarian law implementation (ALI) case with the RD.

In the event that the PARO decides to amend the Master List, will there be another posting?

Yes. The amended list shall be posted for another seven (7) days.

In case of an adverse decision, what can the aggrieved party do?

A person who disagrees with the decision may file a verified petition for inclusion/exclusion against the ARBs in accordance with existing ALI rules.

Until when can the inclusion/exclusion petition be filed with the RD?

The filing of a verified petition must be initiated within one (1) year from the registration of the Republic of the Philippines title (“RP Title”), or from the issuance of Certificate of Deposit in case the landholding is untitled. Petitions filed beyond the one (1) year period will be dismissed.

Will the inclusion/exclusion proceeding affect the land distribution?

No. The LAD process shall continue despite the pendency of the case. But if the action is still pending at the time of the generation of the CLOAs, the ARBs shall be notified by the MARO that the land allocated may still change depending on the final conclusion of the case. In such case, the PARO shall cause the annotation on the back of the CLOA that the award is not yet final until such time that a final and executory decision has been rendered on the case.



Issuance of noc

non-submission of list by loSubmission of list by lo

preparation and posting of preliminary list(within 7 days)

submission of documents

Screening

preparation of master list & service upon lo

lo to file protest

decision of paro

lo to attest to the veracity of the list of non-action

service and posting of final list (7 DAYS)

FInal list arb to file protest

amended final list ali case with rd-osec-op

final list

30 days

3 days from receipt of list uponlapse of 30 days

15 days

5 days

7 days

15 days

1 year



What will happen to the annotation upon the termination of the case? The PARO, in his own instance, shall cause the removal of the annotation upon the termination of the case.

ARB OATH

Aside from the submission of documents to prove their qualifications, what are expected of the ARBs in the LAD implementation?

The ARBs who qualify under the screening process shall state under oath before the judge of the city or municipal court that he/she44:

a. is willing to work on the land to make it productive; and b. will assume the obligations imposed by pertinent Agrarian

Reform Laws.

Will the failure to take the ARB Oath be considered as a waiver of the right to become an ARB?

No. The failure to take the ARB Oath shall not be construed as a waiver of the right of the farmer to become an ARB. On the other hand, it will also not be considered as an exemption from fulfilling the obligations of an ARB under agrarian reform laws.

The failure to take the ARB Oath will also not cause the ARBs to be removed from the ARB Masterlist.

44 Section 60 of AO 7 Series of 2011 and Section 19 of AO 3 Series of 2012 as amended by Section 2 of AO 1 Series 2017.



Points to PonderARB Oath in lieu of APFU

Under AO 7 Series of 2011 as amended by AO 3 Series of 2013, the ARBs need to sign a document called the Application to Purchase and Farmer’s Undertaking (APFU) stating that they are willing to work on the land to make it productive and to assume the obligation of paying the amortization for the compensation of the land as well as the land taxes thereon. The ARBs will also need to make an oath before the judge of the city or municipality committing that they will comply with their pledge in the APFU. Failure to or refusal to execute and sign the APFU constitutes a waiver of the farmer’s right to become an ARB.

Under AO5 Series of 2017, the execution of the APFU is no longer required for purposes of giving their assurance in complying with their responsibilities and obligations as ARBs. What is required is the ARB’s oath before the judge of the city or municipal court pledging their compliance with their undertaking as ARBs.

In any case, the ARB Oath will not be a condition precedent to their qualification as ARBs of the landholding.



LAND SURVEY & JOINT FIELD INVESTIGATION

After the identification of qualified ARBs, DAR will then proceed with the survey of the subject landholding. The land survey will identify the coverable areas and will delineate the portions allocated for each ARB. Thereafter, a field investigation will be conducted by the MARO and representatives of LBP and BARC in preparation for the determination of just compensation.

After identifying the qualified ARBs, can DAR proceed with land valuation45?

No. Survey activities and field investigations, for purposes of segregating coverable and non-coverable areas, and determining land use shall first be conducted.

The Provincial Agrarian Reform Program Officer (PARPO) shall, within five (5) working days from receipt of the claim folder (CF) from the Municipal Agrarian Reform Program Officer (MARPO), determine the completeness and correctness of the required documents prior to the conduct of the Joint Field Investigation (JFI) and valuation.

If the documents are complete and correct, the PARPO shall within five (5) working days, submit the CF together with the Advance or Approved Copy of the Segregation or Subdivision Plan (AdvSP or ASP), whichever is applicable, to the DAR Regional Office (DARRO).

In the case of the AdvSP, the PARPO and the Geodetic Engineer (GE) who conducted the survey shall jointly certify that the AdvSP to be used in the JFI is the same subdivision plan attached to the survey returns submitted or to be submitted to the DENR or the LRA for approval.

45 Sections 65 and 68 of AO 7 Series of 2011 and Sections 20, 21 and 22 of AO 3 Series of 2011, as amended by Section 1.1 of AO 4 Series of 2014.



The DAR Regional Director (RD)or his/her duly authorized representative shall, within three (3) working days from receipt of the CF from the PARPO, convene the DAR-LBP Pre-Processing Unit (PPU) to validate the completeness and correctness of the documentary requirements in the CF prior to the conduct of the JFI and valuation. Is it necessary for DAR to wait for the approval of the survey results before it can request for a Joint Field Investigation (JFI) with LBP46?

No. However the DAR needs to attach the Segregation Survey Plan to its request for a joint FI. The land use shall be indicated per lot in the AdvSP or ASP during the Field Investigation.

Where a particular lot has multiple land uses, the AdvSP or ASP should reflect the actual land use/s on a per lot basis.

In case of conflict between the AdvSP or ASP and the result of the JFI, the JFI shall prevail. A resurvey will be conducted to adjust the AdvSP or the ASP in accordance with the result of the JFI.

What will be the process after the conduct of the JFI47?

Immediately after the completion of the JFI, the team shall accomplish and sign a Field Investigation Report (FIR). They will certify the correctness of the land use/s per lot by affixing their signatures of the AdvSP or the ASP.

The FIR signed by the JFI team shall be forwarded by the MARPO to the PARPO and LBP Agrarian Operation Center (AOC) Head for notation and signature.

46 Sections 65 and 68 of AO 7 Series of 2011 and Sections 20 and 21 of AO 3 Series of 2012, as amended by Section 1.2 of AO 4 Series of 2014.47 3rd paragraph of AO 4 Series of 2014.



If the FIR tallies with the AdvSP or ASP, the PARPO shall immediately forward the FIR, together with the copy of the AdvSP or ASP certified by the JFI team, to the DAR Regional Office (DARRO) for inclusion in the CF by the Regional CARPO for Operations. What is the purpose of conducting an FI?

The purpose is to verify the reports contained in the Claim Folder (CF) for valuation purposes. It shall be conducted jointly by the MARO, a member of the BARC and representatives of the LBP.

The following persons shall be invited, when needed:

A. The Municipal/Provincial Agricultural Office if there is an issue on the suitability of the landholding for agriculture;

B. DENR-CENRO/PENRO if there is any issue as to the slope; orC. Licensed geodetic engineer if there are less than three (3)

monuments and/or natural boundary points remaining at the site.

Will the landowner and ARBs be invited to join the investigation?

Yes. They shall be notified no later than fifteen (15) days prior to the scheduled date of the conduct of the FI. DAR may proceed even in their absence, provided that they were duly notified. Proof of notice shall be included in the CF.

What happens after the conduct of FI?

After the FI, the MARO and the representatives of BARC and LBP shall prepare the FIR.

Upon completion of the FIR, the CF and the Land Distribution Information Schedule (LDIS) shall be transmitted to the DAR-LBP Processing Unit (PPU) for verification and eventual transmittal to the LBP. Upon receipt, LBP may begin its process of determining the value of just compensation.



LAND VALUATION

The LBP shall determine the initial valuation of the landholding and inform DARPO of its computation through a Memorandum of Valuation (MOV) with a Land Valuation Worksheet (LVW). No MOV, however, shall be issued by LBP prior to its receipt of the Approved Survey Plan (ASP).

The ASP refers to the survey plan verified and approved by DENR-LMS. DARPO shall submit the ASP to the LBP within three (3) days from receipt. If the ASP’s total area is the same as in the survey plan included in the CF, then the LBP may determine the initial valuation. Otherwise, a resurvey must be conducted to correct the discrepancy. Aside from the ASP, the DARPO will also submit the Masterlist of ARBs, the ARBs Oaths and the Land Distribution and Information Schedule (LDIS) to the LBP within three (3) working days from the execution of the ARBs’ Oaths. The ARB Oath shall be used in lieu of the APFU48.

How is land value determined?

The basic formula for the computation is:

LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)

Where –

LV Land Value

CNI Capitalized Net Income based on land use and productivity. This is determined by taking the sum of the

48 Section 71 of AO 7 Series of 2011 and Section 25 of AO 3 Series of 2012, as amended by Section 3 of AO 5 Series of 2017.



net present value of the streams of income that will be forgone by the landowner due to the coverage of his landholding.

CS Comparable Sales based on the principle of substitution. This is based on the fair market value equivalent to 70% of Bureau of Internal Revenue zonal value.

MV Market Value as stated in the Tax Declaration

What if not all factors are present?

A. If all 3 factors are present: LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)

B. If only CNI and MV are present: LV = (CNI x 0.90) + (MV x 0.10)

C. If only CS and MV are present: LV = (CS x 0.90) + (MV x 0.10)

D. If only MV is present:

LV= MV x 2

In no case, however, shall the value of idle land using the formula (MV x 2) exceed the lowest value of land within the same estate under consideration or within the same barangay, municipality, or province (in that order) approved by the LBP within one (1) year from receipt of the CF.

Will the Landowner be compensated for the land awarded to his preferred beneficiaries?

No. They are not to be included in the computation because the preferred beneficiaries are his/her children.



What will LBP do after determining the value of the land?

LBP will prepare an MOV and transmit the same to DARPO.

Within three (3) days from receipt of the MOV, the PARO shall issue the Notice of Land Valuation and Acquisition (NLVA) and direct the MARO to serve the NLVA, MOV and LWV to the landowner within five (5) days.

PARO

Issue NLVA and direct MARO to

serve the NLVA, MOV and LVW to LO

Issue NLVA and direct MARO to

serve the NLVA, MOV and LVW to LO

On the same day, the PARO shall transmit his Order to Deposit Landowner’s Compensation to the LBP. The LBP, in turn, shall issue a Certificate of Deposit (COD) upon receipt. LBP shall also notify LO of the checklist of pre-payment requirements.

How will the NLVA be served?

If the LO was served with the NOC through personal or substituted service, or has corresponded with DAR in relation to the landholding after its publication, the NLVA shall be served by registered mail. Otherwise, or the registered mail remained unserved for fifteen (15) days or more, the PARO shall cause its publication in a newspaper of national circulation.

The NLVA shall also be posted at the site of the landholding and on the bulletin boards of the Barangay Hall and Municipal/City Hall where the subject landholding is located within five (5) days.



What is expected of the Landowner upon receipt of the NLVA?

The landowner must file a written acceptance or rejection within thirty (30) days from receipt of the NLVA, or its posting, whichever comes later.

Should the Landowner reject the valuation, can he make any withdrawals from the original value of the landholding as determined by DAR and LBP?

Yes, the landowner may withdraw the original value subject to the submission of the requirements for payment. The withdrawal shall not automatically terminate the adjudication of the just compensation case.

What takes place after the COD has been issued?

Within ten (10) days from receipt, the PARO shall transmit copies of the COD and ASP to the ROD and request for the issuance of a TCT in the name of the Republic of the Philippines.

Upon receipt of the request, the ROD shall immediately issue the RP Title for the CARP covered area and a separate title to the retention and non-coverable areas in the name of the LO.

CLOA GENERATION

Simultaneous to the request for issuance of RP Title, the PARO shall direct the MARO to take actual possession of the land and to prepare the Land Distribution Folder (LDF). While preparing the LDF, the MARO shall notify the qualified ARBs of the completion of the acquisition process. The MARO shall also notify them of their usufructuary rights over the lands allocated as their area of award.

DARPO will proceed with the generation of the CLOAs upon verification of the contents of the LDF.



What does the LDF contain?

The LDF contains –

A. Duly executed APFUs;B. Duly received copies of the letters to qualified ARBs allocating

area of award;C. ASP;D. Copy of the RP Title; and E. LDF Transmittal Memorandum.

The MARO shall provide a list containing the names of the qualified ARBs and their corresponding lot areas.

LAND DISTRIBUTION

How will the subject land be divided among the qualified ARBs?

The qualified ARBs may agree among themselves how the land shall be allocated. The agreement must be signed by all.

What if no agreement was made?

The land shall be allocated in the following manner:

A. It shall first be allocated to agricultural lessees, tenants, and regular farm workers of the same landholding up to a maximum of three (3) hectares each.

B. The remaining area shall be distributed to seasonal farm workers, other farm workers, actual tillers or occupants of public lands, and others directly working on the land, in that order of priority.

C. Excess areas, if any, shall be awarded to collectives or cooperatives of the beneficiaries.



How will the land be allocated if there are preferred beneficiaries?

Preferred beneficiaries may select a contiguous and compact area, not exceeding three (3) hectares, prior to determining the allocation for the ARBs. In no case, however, may the distribution to preferred beneficiaries deprive the agricultural lessees and tenants of being awarded the portion of the landholding they are actually tenanting/leasing, which in no case shall be more than three (3) hectares.

If the land is not enough for the agricultural lessees, tenants and regular farm workers, how will it be divided?

It shall be divided equally among the agricultural lessees, tenants and regular farm workers subject to the following conditions –

A. In no case may the allocation deprive the agricultural lessees and tenants of being awarded the portion of the landholding they are actually leasing, which shall not be more than three (3) hectares;

B. The minimum area to be awarded to an ARB is 1,000 square meters.

In case the allocation will result to the distribution of less than 1,000 square meters to each ARB, the following shall be followed:

A. The ARBs shall be ranked according to the aggregate period of the lease or service/occupancy as tenant/farm workers, where the ARBs with the longest period shall be prioritized.

B. Each ARB shall be allocated with 1,000 square meters until the area remaining is less than 1,000 square meters. This remaining area shall then be distributed equally among the FBs who received 1,000 square meters each.



If all agricultural lessees, tenants and regular farmworkers have been allocated with a maximum of three (3) hectares each, what will happen to the remaining areas?

The same shall be distributed in the manner laid out in item 95 to the identified seasonal farmworkers, other farmworkers, actual tillers or occupants of public lands, and others directly working on the land, in that order of prioritization. This means that all seasonal farmworkers shall first receive a maximum of three (3) hectares before the remaining areas will be allocated to the other qualified ARBs.

CLOA GENERATION

What is the rule in CLOA generation?

In general, the ARBs shall be awarded with individual CLOAs covering one (1) contiguous tract or several parcels of land cumulated up to a maximum of three (3) hectares.

Can the ARBs opt for collective ownership?

Yes. They may opt for collective ownership, through a co-workers or farmers’ cooperative/association or some other form of collective organization. The total area to be awarded shall not exceed the total number of co-owners or members of the cooperative or collective organization multiplied by the award limit of three (3) hectares, except in meritorious cases as may be determined by the PARC.

In case of a collective ownership, under whose name should the CLOA be issued?

A collective CLOA shall be issued in the name of the co-owners, who may form a farmer’s cooperative/association or collective organization. In such a case, the names of all the beneficiaries must be listed in the CLOA.



What are the conditions for issuing a collective CLOA?

Collective CLOA may be issued under the following instances:

A. The current farm management system of the land covered by the CARP is not appropriate for either individual farming or division of the landholding into farm parcels;

B. The farm labor system is specialized, where the farm workers are organized by functions such as spraying, weeding, packing, and other similar activities, and not by specific parcels;

C. The potential beneficiaries are currently not farming individual parcels but collectively working on large contiguous areas; and

D. The farm consists of multiple crops being farmed in an integrated manner, or includes non-crop production areas that are necessary for the viability of farm operations, such as packing plants, storage areas, dikes, and other similar facilities that cannot be subdivided or assigned to individual farmers.

The preference for a collective CLOA shall be made within fifteen (15) days from the posting of the Master List. Failure to file a manifestation shall be construed as a waiver of the right to choose and that the ARBs opted for an individual CLOA.

Is collective ownership allowed over idle, abandoned, or undeveloped lands?

It shall be allowed ONLY if the beneficiaries opt for it, and in case there is a clear development plan that would require collective farming or integrated farm operations exhibiting the conditions described in Section 96 of AO 7. Otherwise, individual CLOAs shall be issued.



Pending the award of the CLOA, may the ARB till the land?

Yes. The ARBs have the right of usufruct over the land from the time the DAR takes constructive or actual possession of the same until the award of a CLOA.

In case of married beneficiaries, how should their names appear in the CLOA?

For legally married spouses, the names of both husband and wife shall appear in the CLOA and shall be preceded by the word “spouses.”Should the couple qualify as individual ARBs, their names shall be registered in the title, indicating that the first named spouse is the awardee (i.e. Maria married to Juan).

In case of common-law relationship, the names of both parties shall likewise appear in the CLOA with the conjunctive word “and” between the names. Should they likewise qualify as individual ARBs, their names may be registered without the other.

The same provisions shall apply where married ARBs or those in common law relationships are covered by a collective CLOA.

When will the rights and obligations of the ARBs commence?

The rights of the ARBs (other than the usufructuary rights) and their obligations shall commence from their receipt of a certified true copy of the duly registered CLOA and actual physical possession of the awarded property.



OBLIGATIONS OF ARBs

• To exercise diligence in the use, cultivation, and maintenance of the land, including the improvements thereon. Negligence, misuse, or unauthorized sale of the land or misuse of any support extended to an ARB shall be a ground for the forfeiture of one’s right as an ARB.

• To pay the LBP the thirty (30) annual amortization with interest at six percent (6%) per annum. Payments shall commence one (1) year from the date of actual occupancy of the ARB, provided that the CLOA has already been registered.

• To pay the real property taxes due on the awarded lands.

• Not to sell, transfer, or convey the awarded land, except through hereditary succession or to the Government, or to the LBP, or to other qualified beneficiaries within a period of ten (10) years, and while the amortization payments have yet to be fully paid.

Pending full payment of the amortization of the awarded land, can the ARB get a copy of the CLOA?

Yes. They can secure a copy of the CLOA. Pending full payment of the amortization, however, the LBP as the mortgagee-financing institution shall be the responsible repository of the CLOAs until the time of their release to the ARBs upon full payment of the land amortization and the cancellation of the encumbrance.



INSTALLATION OF ARBS

When does the ARB’s right to possess the land commence?

As owner/s of the awarded land, the ARB shall take possession of land from the time the same is awarded to them through a registered CLOA.

What assistance can DAR give to the ARBs in cases where their lives are threatened by the installation?

In case taking possession of the awarded land by the ARB would imperil or endanger their lives, the DAR shall assume responsibility for the installation of the ARBs, with the assistance of the police or military, until they have settled in constructive and physical control of the property.

The PARO may issue a Writ of Installation directing the Sheriff of the Provincial Agrarian Reform Adjudicator (PARAD) or the Regional Agrarian Reform Adjudicator (RARAD) who has jurisdiction over the landholding, alone or with the assistance of the police or military, to conduct all necessary lawful acts to physically install the ARBs.

In case the installation would need the assistance of the police or military, the PARO shall coordinate with the Department of National Defense-Armed Force of the Philippines (DND-AFP) and the Department of Interior And Local Government- Philippine National Police (DILG-PNP), pursuant to the Memorandum Order executed by the DAR, DILG and DND.

The ARBs may seek assistance from the DAR when they are facing threats, harassments, or ejection attempts by the landowners and other parties.



What other forms of assistance can the DAR provide the ARBs?

The DAR shall assist the ARBs in reporting cases to the police or military, as well as the filing of the appropriate legal action against those responsible, if warranted. If dispossessed, the DAR shall assist the ARBs in recovering the possession of their land.

In cases of failed installation and/or dispossession of FBs due to LO harassment, the DAR may refer the matter to the DOJ for the proper investigation of possible violation of Section 73 of R.A. No. 6657, as amended.

What actions can the ARBs do in cases of LO harassments?

In the event the former landowners harasses or threatens the ARBs, they should immediately report the matter to the concerned PNP and DARPO. The ARB shall be assisted by the DAR Regional/Provincial Legal Division, Public Attorney’s Office (PAO), and the Office of the City/Provincial Prosecutors for legal action.

What actions can the ARBs do in cases where they are forcibly driven out of their land?

The ARBs shall take the initiative in filing a criminal case against the perpetrators, with DAR providing legal assistance to the ARBs. The ARBs shall be re-installed notwithstanding the pendency and result of the case filed against the perpetrators conformably with A.O. No.4, Series of 2010.



What is the liability of the LO who obstructs, delay or stalls the installation of the ARBs?

The landowner shall be liable under Section 73 (d) of RA 6657, as amended. The landowner shall also be liable for actual, compensatory, and moral damages suffered by the ARBs.

POWERS & DUTIES

Can the RD and the DAR Secretary issue protective injunctive orders?

Yes. The RD and the DAR Secretary, motu propio, can grant a protective order injunction order within two (2) years from the issuance of the CLOA to preserve the covered lands and ensure the peaceful and effective ownership of the ARBs.

A protective injunction order may be mandatory, to enjoin the performance of a ministerial duty sanctioned by the laws, or prohibitory in nature in order to stop the commission of an act detrimental to the rights of the parties in an agrarian controversy.

Failure to comply with such order is considered an obstruction to CARP implementation and punishable under Section 73 of RA 6657, as amended.

What are the duties of the ROD in the implementation of CARP?

The ROD has the ministerial duty to:

A. Register the title in the name of the Republic of the Philippines, after the LBP has certified that the claim proceeds have been deposited in the name of the landowner constituting full payment in cash and bonds, with the notice to the landowner;



B. Register the CLOA generated by DAR;C. Cancel previous landowner titles pertaining thereto; andD. Issue title for the landowner’s retained area and other non-

CARPable areas.

Can the implementation of AO 7 be suspended?

Yes. In order to serve and protect the interest of CARP implementation, the DAR Secretary may suspend the rules embodied in AO 7, as amended.

Role of the PNPand AFP in the

Installation of ARBs

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Role of the pnp and afp in the installation of arbs


Introduction

The actual and peaceful occupation of farmer beneficiaries in their awarded lands is one of the challenges in the successful implementation

of the CARP. The receipt of the CLOAs by the farmers does not necessarily translate to security of tenure for them. Even if the farmers are already owners of the land, there are cases where the previous landowners do not respect, recognize and accept their ownership. Various machinations are employed by previous landowners to remain in control of the land.

There are many instances were CLOA holders cannot set foot on their awarded lands. The former landowners hire blue guards, or employ their farmworkers to block the CLOA holders from entering the land and threaten their family members with harm or filing of cases if they persist on doing so. They take advantage of the poverty and vulnerability of the farmers using violence, harassment – both physical and legal, and intimidation.

The DAR and PNP assistance is crucial in ensuring the actual and peaceful possession of farmers in their awarded lands, especially where landowner resistance is strong and unrelenting. These agencies provide installation guidelines49 in cases where the FBs need DAR and PNP assistance to assert their rights of ownership over their property.

49 DAR AO 7, Series of 2011 as amended and PNP Handbook PNPM-DO-DS-3-2-13 issued In December 2013.



role of the pnp and afpin the installation of arbsWhat are the government offices involved in the program?

Many agencies are involved in the implementation of CARP. The lead agencies are the DAR, and the DENR.

Can DAR seek the assistance of other government agencies?

Section 69 of RA. 6657 expressly provides that DAR, in the exercise of its functions, is hereby authorized to call upon the assistance and support of other government agencies, bureaus and offices, including government owned or controlled corporations.

Does it include the Philippine National Police (PNP) and the Armed Forces of the Philippines (AFP)?

Yes, Section 109 of AO 7, Series of 2011, provides that in cases where taking possession of the awarded land will endanger the lives of the CLOA holders, the DAR shall assume responsibility for the installation of the farmers with the assistance of the police and/or military.

In the event that the installation activities would necessitate the assistance of the police and/or military, the PARO shall coordinate the said activities with the DND-AFP and the DILG-PNP, in accordance with existing guidelines executed by the DAR, DILG and the DND.

As early as 1989, The Department of Interior and Local Government (DILG), Department of National Defense - Armed Forces of the Philippines (DND-AFP), and DAR issued a Memorandum of Agreement to forge their partnership for the successful implementation of the program.



On 3 May 1995, DAR, DILG and the PNP signed a Memorandum of Agreement (1995 MOA) reinforcing their 1989 agreement regarding the law enforcement aspect of the agrarian reform laws and programs. In the opening statement of the said MOA, the DAR and DILG-PNP unequivocally stated that “the DAR and DILG are mutually desirous and committed to institutionalizing the existing full support to, and cooperate with, one another for the successful implementation of the Comprehensive Agrarian Reform Program (CARP).”

Moreover, on 10 June 2002, cognizant of the equally important role of the DND-AFP in the implementation of the agrarian reform program, the DAR, DILG-PNP and DND-AFP issued DAR-DILG-DND Joint Circular No. 05-02 (2002 Joint Circular) supplementing the 1995 MOA. In the main, the concerned government agencies reaffirmed their respective commitments in the successful and immediate implementation of the AR program and, pursuant to their mandates, laid down the specific roles of each agency “for their mutual cooperation for the attainment and fulfillment of their respective functions.”

DAR AO 5, Series of 2017 further stressed the crucial role of the security sector in the installation of the ARBs in the exercise of their rights as owners of the land. The said AO provides that the DAR, through the PARPO “must ensure the installation of the ARBs on their awarded lands, as owners, until they are in physical possession and full control thereof, and if necessary, call on the Philippine National Police (PNP) and/or Armed Forces of the Philippines (AFP) for assistance. xxx xxx xxx”



What is the current PNP rules/procedure governing the role of our police force in CARP related activities?

Rule 30 of the 2013 PNP Manual50 provides for specific rules regarding the provision of police assistance in the implementation of the CARP.

What are the CARP related activities that can request police assistance?

Under Rule 30.1 of the 2013 PNP Manual, the following activities can be provided with police assistance:

A. Final Orders

1. Final Orders/Resolutions/Decisions Issued by DAR

2. Order of Installation or Certificate of Land Ownership Award (CLOA)

B. Preliminary Agrarian Activities

1. Land survey

2. Field Investigation

3. Ocular Inspection

4. Meeting between actual and potential Agrarian Reform Beneficiaries

5. Post Installation

6. Landholding tagging

7. Analogous cases

50 PNP Handbook PNPM-DO-DS-3-2-13 issued In December 2013.



Can the mentioned activities be subject of an injunction order?

No. As expressly provided in Section 55 of R.A. 6657, except for the Supreme Court, no court in the Philippines shall have jurisdiction to issue any restraining order or writ of preliminary injunction against the PARC, the DAR, or any of its duly authorized or designated agencies in any case, dispute or controversy arising from, necessary to, or in connection with the application, implementation, enforcement, or interpretation of this Act and other pertinent laws on agrarian reform.

Moreover, Section 68 of R.A. 6657 provides for immunity of government agencies from undue interference. Said section states that in cases falling within their jurisdiction, no injunction, restraining order, prohibition or mandamus shall be issued by the regional trial courts, municipal trial courts, municipal circuit trial courts, and metropolitan trial courts against the DAR, the DA, the DENR, and the DOJ in their implementation of the program.

What are the requirements in the granting Police assistance?

Under Rule 30.2 of the 2013 PNP Manual, police assistance in the implementation of final orders, decisions, resolutions or CLOAs issued by DAR shall be rendered only upon a written request submitted by the Agrarian Reform Officer or any authorized Officer of DAR, accompanied with the original or authenticated copy of the final decision, order or CLOA to be implemented. The request and its attachments, regardless of the place of execution, shall be submitted to the Office of the Chief, PNP for his approval.

In a Memorandum dated 16 August 2016 issued by Police Director General (PDG) Ronald M. Dela Rosa, the Office of the Chief PNP “delegates to the Regional Directors the authority to approve requests for police assistance within their area of jurisdiction in the implementation of final decisions or orders or resolutions of the courts in civil cases, of quasi –judicial bodies,



and of administrative bodies subject to the requirements of existing laws, policies, and regulations.”

For police assistance during the conduct of preliminary agrarian activities as provided in Rule 30.1b51, it shall be rendered only upon a written request submitted by the Agrarian Reform Officer or any authorized Officer of DAR, accompanied with the original or authenticated copy of the Order issued for the activity (if applicable). The request shall be submitted to the Office of the Regional Director of the Police Regional Office having jurisdiction over the area of execution for his approval.

What is the extent of the Police Assistance?

As provided in Rule 30.4 of the 2013 PNP Manual, the head of office or unit tasked to render police assistance shall have the discretion to employ sufficient number of PNP uniformed personnel after taking into consideration the scope of the resistance to be encountered, if there is any, and the general peace and order condition in the area. Unless a higher ranking Officer is necessary and more PNP personnel are required, the police team that will render police assistance should be led by a Police Commissioned Officer (PCO) with the rank of Police Senior Inspector. All members of the team shall be in prescribed uniform when rendering police assistance.

What is the specific role of PNP Personnel rendering police assistance?

Rule 30.5 of the 2013 PNP Manual states that the PNP personnel shall observe maximum tolerance and respect for individual rights at all times. The use of reasonable force shall only be resorted to for self-defense and defense of strangers. Moreover, the PNP personnel shall always exercise utmost impartiality and neutrality in effecting its role. The role of the PNP when rendering police assistance shall be limited to the maintenance of

51 2013 PNP Manual.



peace and order, crowd control, and the security of the duly authorized officer of the DAR. In no case shall PNP members participate in the implementation of the decision/order/resolution or in the conduct of any of the preliminary agrarian activities, which shall be undertaken by the duly authorized officer of the DAR.

The duly authorized officer of the DAR leading the implementation of the decision/order/resolution/CLOA or leading the conduct of the preliminary agrarian activity shall have the final disposition whether to proceed or not with the implementation of the decision/order/resolution/CLOA or conduct of the activity.

Basic Agrarian Reform Concepts and Principles

What is a CLOA?

A CLOA is a document evidencing ownership of the land granted or awarded to the beneficiary by DAR, and contains the restrictions and conditions provided for in RA 6657 and other applicable laws. The beneficiaries of the CLOAs are called ARBs.

will the cloa be considered as an indefeasible title one (1) year after its issuance?

Yes. Section 24 of RA 6657, as amended, provides:

“SEC. 24. Award to Beneficiaries. - The rights and responsibilities of the beneficiaries shall commence from their receipt of a duly registered emancipation patent or certificate of land ownership award and their actual physical possession of the awarded land. Such award shall be completed in not more than one hundred eighty (180) days from the date of registration of the title in the



name of the Republic of the Philippines: Provided, That the emancipation patents, the certificates of land ownership award, and other titles issued under any agrarian reform program shall be indefeasible and imprescriptible after one (1) year from its registration with the Office of the Registry of Deeds, subject to the conditions, limitations and qualifications of this Act, the property registration decree, and other pertinent laws. The emancipation patents or the certificates of land ownership award being titles brought under the operation of the torrens system, are conferred with the same indefeasibility and security afforded to all titles under the said system, as provided for by Presidential Decree No. 1529, as amended by Republic Act No. 6732. xxx”

Also, as enunciated in the case of Lahora vs. Dayanghirang, CLOAs are indefeasible upon the lapse of one (1) year from registration, similar to certificates of title issued in registration proceedings.

When does the ARB’s right to possess the land commence?

As owner/s of the awarded land, the ARB shall take possession of land from the time the same is awarded to them through a registered CLOA.

Pending the award of the CLOA, may the ARB till the land?

Yes. The ARBs have the right of usufruct over the land from the time the DAR takes constructive or actual possession of the same until the award of a CLOA52.

52 Section 24 of R.A. 6657, as amended by Section 9 of RA 9700.



What is “ïnstallation?”

Installation refers to a series of activities spearheaded by the DAR to achieve the effective possession and peaceful control by ARBs of the awarded land.

May a person maliciously and intentionally obstruct the installation of the ARBS?

No. it is a criminal offense under Section 73(D) of R.A. 6657

What are the other prohibited acts under R.A. 6657?

The following are prohibited53:

A. The ownership or possession, for the purpose of circumventing the provisions of this Act, of agricultural lands in excess of the total retention limits or award ceilings by any person, natural or juridical, except those under collective ownership by farmer-beneficiaries;

B. The forcible entry or illegal detainer by persons who are not qualified beneficiaries under this Act to avail themselves of the rights and benefits of the Agrarian Reform Program;

C. Any conversion by any landowner of his/her agricultural land into any non-agricultural use with intent to avoid the application of this Act to his/her landholdings and to dispossess his/her bonafide tenant farmers;

D. The malicious and willful prevention or obstruction by any person, association or entity of the implementation of the CARP;

E. The sale, transfer, conveyance or change of the nature of lands outside of urban centers and city limits either in whole or in part

53 Section 73 of RA 6657, as amended by Section 24 of RA 9700.



after the effectivity of this Act, except after final completion of the appropriate conversion under Section 65 of Republic Act No. 6657, as amended. The date of the registration of the deed of conveyance in the Register of Deeds with respect to titled lands and the date of the issuance of the tax declaration to the transferee of the property with respect to unregistered lands, as the case may be, shall be conclusive for the purpose of this Act;

F. The sale, transfer or conveyance by a beneficiary of the right to use or any other usufructuary right over the land he/she acquired by virtue of being a beneficiary, in order to circumvent the provisions of this Act;

G. The unjustified, willful, and malicious act by a responsible officer or officers of the government through the following:

1. The denial of notice and/or reply to landowners;

2. The deprivation of retention rights;

3. The undue or inordinate delay in the preparation of claim folders; or

4. Any undue delay, refusal or failure in the payment of just compensation;

H. The undue delay or unjustified failure of the DAR, the LBP, the PARC, the PARCCOM, and any concerned government agency or any government official or employee to submit the required report, data and/or other official document involving the implementation of the provisions of this Act, as required by the parties or the government, including the House of Representatives and the Senate of the Philippines as well as their respective committees, and the congressional oversight committee created herein;

I. The undue delay in the compliance with the obligation to certify or attest and/or falsification of the certification or attestation as required under Section 7 of Republic Act No. 6657, as amended; and



J. Any other culpable neglect or willful violations of the provisions of this Act.

In the case of government officials and employees, a conviction under this Act is without prejudice to any civil case and/or appropriate administrative proceedings under civil service law, rules and regulations. Any person convicted under this Act shall not be entitled to any benefit provided for in any agrarian reform law or program.

What are the penalties54?

Any person who knowingly or willfully violates the provisions of this Act shall be punished by imprisonment of not less than one (1) month to not more than three (3) years or a fine of not less than One thousand pesos (P1,000.00) and not more than Fifteen thousand pesos (P15,000.00), or both, at the discretion of the court: Provided, That the following corresponding penalties shall be imposed for the specific violations hereunder:

1. Imprisonment of three (3) years and one (1) day to six (6) years or a fine of not less than Fifty thousand pesos (P50,000.00) and not more than One hundred fifty thousand pesos (P150,000.00), or both, at the discretion of the court upon any person who violates Section 73, subparagraphs (a), (b), (f ), (g), and (h) of Republic Act No. 6657, as amended; and

2. Imprisonment of six (6) years and one (1) day to twelve (12) years or a fine of not less than Two hundred thousand pesos (P200,000.00) and not more than One million pesos (P1,000,000.00), or both, at the discretion of the court upon any person who violates Section 73, subparagraphs (c), (d), (e), and (i) of Republic Act No. 6657, as amended.

If the offender is a corporation or association, the officer responsible therefor shall be criminally liable.

54 Section 74 of RA 6657, as amended by Section 25 of RA 9700.



May the Police force arrest even without a warrant those persons who maliciously obstructs the installatiion proper?

Yes. Under Section 5 of Rule 113 of the Rules of Court, a peace officer or private person may arrest without warrant:

A. When, in his presence, the person to be arrested has committed, is actually committing, or is attempting to commit an offense;

B. When an offense has just been committed and he has probable cause to believe based on personal knowledge of facts or circumstances that the person to be arrested has committed it; xxx

What assistance can DAR give to the ARBs in cases where their lives are threatened by the installation?

In case the installation would need the assistance of the police or military, the PARO shall coordinate with the DND-AFP and the DILG-PNP, pursuant to the Memorandum Order executed by the DAR, DILG and DND.

The ARBs may seek assistance from the DAR when they are facing threats, harassments, or ejection attempts by the LOs and other parties.

What other forms of assistance can the DAR provide the ARBs?

The DAR shall assist the ARBs in reporting cases to the police or military, as well as the filing of the appropriate legal action against those responsible, if warranted. If dispossessed, the DAR shall assist the ARBs in recovering the possession of their land.

In cases of failed installation and/or dispossession of FBs due to landowner harassment, the DAR may refer the matter to the DOJ for the proper investigation of possible violation of Section 73 of R.A. No. 6657, as amended.



What actions can the ARBs do in cases where they are forcibly driven out of their land?

The ARBs shall take the initiative in filing a criminal case against the perpetrators, with DAR providing legal assistance to the ARBs. The ARBs shall be re-installed notwithstanding the pendency and result of the case filed against the perpetrators conformably with A.O. No.4, Series of 201055.

What is the liability of the landowner who obstructs, delay or stalls the installation of the ARBs?

The landowner shall be liable under Section 73 (d) of RA 6657, as amended. The landowner shall also be liable for actual, compensatory, and moral damages suffered by the ARBs.

What are “standing crops?”

Standing crop refers to harvestable agricultural produce or a portion thereof normally harvested for such particular crop growing on land at the same the DAR takes possession thereof pursuant to Sec 16(e), 24 , and 28 of RA 6657.

Crops introduced by the landowner, directly, or through his agents, on or after the landowner receipt of a notice from the DAR that the land has already been effectively acquired by the state are deemed to have been introduced in bad faith and shall not be considered as “standing crop.”

55 Amendment to Administrative Order No. 2, Series of 2009 on the Installation of ARBs with Registered CLOAs. Please note that this is already incorporated in Sections 110 and 111 of AO 7 Series of 2011 as amended.

tenancy andleasehold

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tenancy and leasehold


Laws on tenancy have been enacted since the 1930s to regulate the relationship of the landlord and tenant. These laws and regulations have

since changed. From the Rice Tenancy Act (1933) which institutionalized the 50-50 per cent sharing between the landlord and the tenant, the CARP, as amended abolished share tenancy and converted the same into leasehold. Under the leasehold tenancy, the tenant pays the landholder a fixed amount in the form of money or agricultural products, or both. Under a leasehold tenancy agreement, the consideration for the lease shall not be more than the equivalent of twenty five per cent (25%) of the average normal harvest during the three (3) agricultural years immediately preceding or prior to the date the leasehold is established56.

As stated in the prefatory statement of DAR AO 2, Series of 2006:

“The evolution of the law of leasehold has been a great challenge to both government and civil society stakeholders as it progressed from one of election and limited operation to one of compulsion and comprehensive application.

Republic Act (R.A.) No. 119957 which became operative on 30 August 1954 was enacted to govern share tenancy. Section 14 of the said law recognized the rights of the tenants to choose for leasehold tenancy agreement. R.A. 3844,58 which took effect on 8 August 1963, as amended by RA 6389,59 finally declared agricultural share tenancy as contrary to public policy and was, thereby abolished. Section 4 of RA 6389 automatically converted share

56 DAR AO 2, Series of 2006.57 Agricultural Tenancy Act, 195458 Land Reform Code, 196359 An Act Amending R.A. No 3844 or the Land Reform Code, 1971.

Introduction



tenancy throughout the country into agricultural leasehold relationship.

The Comprehensive Agrarian Reform Law (CARL) or RA No. 6657, which took effect on 15 June 1988, expressly repealed Section 35 of RA No. 3844, which exempted fishponds, saltbeds, and lands principally planted to citrus, coconut, cacao, coffee, durian and other similar permanent crops. The significant implications of this evolution of the law are as follows:

1. The abolition of share tenancy now covers all agricultural landholdings without exceptions;

2. The conversion of share tenancy into leasehold is mandated by law;

3. Agricultural leasehold can be a preliminary step to land ownership. Hence, all share-crop tenants were automatically converted into agricultural lessees as of 15 June 1988, whether or not a leasehold agreement has been executed; and

4. Leaseholders’ security of tenure shall be respected and guaranteed.”

Various events occurred, which exposed farmers, particularly in leasehold areas, to further exploitation and abuse given the vulnerability of their status and condition as farmer beneficiaries under the CARP. The onslaught of Yolanda in 2013 and the recurring problem of cocolisap infestation plague and devastate farmlands. These disasters cause farmers to be displaced and suffer losses both to their lives and livelihoods.

In response to these events, the DAR has issued additional guidelines in the protection of farmers’ rights in leasehold areas.




What are the laws, rules, and regulations on Tenancy Relations?

• RA 1199, also known as the “Agricultural Tenancy Act of the Philippines”, which gave tenants the option to elect either share tenancy or leasehold tenancy arrangements;

• RA 3844, which ordained the “Agricultural Land Reform Code” and abolished share tenancy on account of being contrary to public policy;

• RA 6389, also known as the “Code of Agrarian Reform of the Philippines”, which amended RA 3844, provided for the automatic conversion of agricultural share tenancy into agricultural leasehold tenancy, and created the DAR;

• RA 6657, also known as the “Comprehensive Agrarian Reform Law of 1988”, which mandated the DAR to determine and fix lease rentals, abolished the exemptions mentioned in Sec. 35 or RA 3844, and made all tenanted agricultural lands subject to leasehold;

• RA 9700, the Comprehensive Agrarian Reform Program with Extension and Reforms (CARPER);

• DAR A.O. 2 Series of 2006, the Revised Rules and Procedure Governing

• Leasehold Implementation in Tenanted Agricultural Lands;

• DAR A.O. 2, Series of 2014, the Rules and Regulations on Leasehold Operations in Tenanted Coconut Lands Affected by Fortuitous Events, Natural Disasters or Calamities

• DAR A.O. 8, Series of 2014, the Supplemental Rules and Regulations for Administrative Order No. 2, Series of 2014 on Leasehold



Operations in Tenanted Coconut Land Affected by Fortuitous Events, Natural Disasters, or Calamities2.

What are tenancy relations?

Tenancy relations refer to the relationship between a landholder and a tenant, wherein the tenant cultivates the land belonging to or possessed by the landholder. Under the leasehold tenancy system, the tenant pays the landholder a price certain or ascertainable in produce or in money, or both.

Who is a tenant?

A tenant shall mean a person who, himself and with the aid available from within his immediate farm household, cultivates the land belonging to, or possessed by, another, with the latter’s consent for purposes of production, paying to the landholder a price certain or ascertainable in produce or in money or both, under the leasehold tenancy system (A.O. 2, Series of 2006).

Who is a landholder?

A person, natural or juridical, who, either as owner, civil law lessee, usufructuary, or legal possessor, lets or grants to another the use or cultivation of his land for a consideration, or price certain or ascertainable, under the tenancy system.

What are the elements of tenancy relations?

For tenancy relations to exist, the following elements must be present:

A. The parties are the landholder and the tenant or agricultural lessee.

The “landholder” need not be the actual owner of the land. The landholder may either be (a) the landowner; or (b) the legal possessor of the land (e.g. usufructuary or lessee).



On the other hand, the tenant or agricultural lessee refers to the farmer or farmworker who cultivates the land. For purposes of illustration, he or she will be called the tenant or tenant-farmer.

B. The landholding is agricultural land;

Lands subject of tenancy relations are those utilized for agricultural purposes.Tenants should be engaged in agricultural activities, which pertain to the cultivation of the soil, planting of crops, and growing of fruit trees, including the harvesting of such farm products, and other farm activities and practices that are performed by a person, cooperative, or a corporation.

Is there any limitation as to the area covered by the tenancy relationship?

No. The law does not provide for any limitation with respect to the size of the land that may be cultivated by

the tenant-farmer.

C. There is consent by the landholder for the tenant-farmer to cultivate or work on the land;

The landholder may show his agreement or consent either orally or in writing, expressly or impliedly.

D. The purpose of the landholder and the tenant-farmer in establishing the tenancy relationship is to bring about agricultural production;

E. The tenant-farmer should personally cultivate the land;

The tenant-farmer must cultivate the land by himself, or with the assistance of his immediate farm household or immediate family members who live with him (e.g. wife or children).



Who are considered as the tenant’s “immediate farm household”?

“Immediate farm household” refers to any person who is a family member of the tenant-farmer, or other persons who depend on the tenant for support and who usually

help the tenant in the cultivation of the land.

What does “cultivation” mean and include?

Cultivation is not limited to the plowing and leveling of the land using agricultural tools. It covers any work

done on the land to make sure that it remains productive for agriculture. It also includes taking care of the land

and fruits growing on the land, fencing of certain areas, cleaning the land by picking up and gathering dried

leaves and cutting of grasses.

In coconut lands, “cultivation” includes the act of clean-ing or clearing the lands, gathering of coconuts, piling

them or grouping the into piles, husking and handling, as well as the process of turning them into copra, al-

though sometimes with the aid of hired laborers. (Coco-nut Cooperative Marketing Association, Inc. v. Court of

Appeals, G.R. No. L-4681-83, August 19, 1988)

Thus, even if the tenant does not actually till the soil, there may still be “cultivation” of the land.



F. The payment or consideration is given by the tenant to the landholder either in the form of a fixed amount of money or produce, or both.

When the harvest is shared between the landholder and the tenant or agricultural lessee, there exists a Share Tenancy System. This is no longer allowed under RA 6657.

What is allowed under existing laws is the Leasehold Tenancy System, which provides that the tenant will pay a fixed amount of money or agricultural produce (example: crops or fruits), or both to the landholder.

What are the characteristics and nature of tenancy relations?

1. Tenancy relations are in the nature of real obligations. These obligations attach to the land itself. This means that, even if either of the landholder or tenant should die, or a contract affecting the tenancy should lapse, the tenancy relation will still remain valid and shall continue to take effect, notwithstanding a change of ownership of the land.

2. Tenancy relations are personal in nature. Strictly speaking, only the landholder and the tenant can perform or do the obligations required of them.

What are the two kinds of Tenancy Relations?

Agricultural Tenancy is classified into: (1) Share Tenancy (no longer allowed under RA 6657); and (2) Leasehold Tenancy.

Share Tenancy exists when two persons agree on a joint undertaking for agricultural production. One person, referred to as “landholder”, furnishes or provides the land, while the other person, called the “tenant”, provides his labor by physically cultivating the land. The produce or products of



the Share Tenancy Agreement are divided between the landholder and the tenant. This is no longer allowed under RA 6657.

On the other hand, Leasehold Tenancy exists when a person, called the tenant, agrees to cultivate an agricultural land owned or legally possessed by another, called a “landholder.” The tenant only pays the landholder a fixed amount in the form of money or agricultural product, or in both. Under a Leasehold Tenancy Agreement, the agricultural products are not divided between the landholder and the tenant.

What is the difference between Share Tenancy and Leasehold?

DIFFERENCE SHARE TENANCY LEASEHOLD TENANCY

Manner of Payment to the Landholder

Payment is in shares (percentage) – it varies depending on the amount of harvest in a given time or period.

Fixed Rental – the amount of rent does not change or vary despite an increase in the harvest or produce, unless the law provides otherwise.

Management

Joint Management – the landholder and the tenant both decide and control the management because the production or the agricultural products are divided between them. There is a Joint Venture.

Sole Management on the part of the tenant – Only the tenant enjoys the management of the land because the production or the agricultural products are not divided between the tenant and the Landholder. The Landholder is required to surrender possession and cultivation of the land to the tenant. In return, the tenant pays a fixed amount of rent to the Landholder.



DIFFERENCE SHARE TENANCY LEASEHOLD TENANCY

Incentive to or Moti-vation of Production

There is less motivation to produce or cultivate the land on the part of the tenant.

This is because, despite the hard work, perseverance, and determination of the tenant, the produce or agricultural products will still be divided between the tenant and the Landholder without any active participation or cooperation on the part of the Landholder.

Any additional growth in the harvest will also mean additional payment to the Landholder by the tenant, because they share in the production.

Under this Leasehold Ten-ancy

Agreement, the tenant has a greater motivation to produce more agricultural products. Any additional harvest or growth will belong to the tenant, be-cause the production is not shared between the tenant and the Landholder.

In short, the increase in harvest will not affect the amount of rent because the amount of rent paid by the tenant is fixed.

The tenant is also given more freedom to decide on the manner of cultivation.

Legal Status Share Tenancy is no longer allowed by the law, because it is not favorable to the tenant.

The law requires that all Agri- cultural Tenancy between the tenant and the Landholder should fall under, or be classified as, Leasehold Tenancy, because it is more just and favorable to the tenant.



Why was share tenancy prohibited under the law?

A. It did not provide sufficient incentives to farmers;

B. Farmers did not have wide latitude of discretion in the operation of the land because landholders were allowed to intervene in the management of the land;

C. The tenancy relation between tenants and landholders is unjustifiable since landholders are granted shares in the produce when the production increases despite contributing nothing in the said increase;

D. There is greater motivation for farmers to increase production under the leasehold tenancy system.

When did the leasehold tenancy system become effective?

Crops planted Effectivity date

Rice and corn

September 10, 1971 (Sept 10, 1971 is the effectivity date of RA 6389, which provided for the automatic conversion of share tenancy to leasehold tenancy)

Sugarcane

From the time the lessee exercises his option to elect leasehold system OR on June 15, 1988, whichever is earlier (June 15, 1988 is the effectivity date of RA 6657, which expressly repealed Section 35 of RA 3844)

Coconut and other perma-nent crops

From the time the lessee exercises his option to elect leasehold system OR on June 15, 1988, whichever is earlier



What are the basic rights and obligations of and prohibitions on tenants?

A. Rights of Agricultural Lessees:

1. To have possession and peaceful enjoyment of the land;

2. To manage and work on the land in the manner and method of cultivation and harvest which conform to farm practices;

3. To be entitled to security of tenure on his landholding. He cannot therefore be ejected from his landholding except for cause provided for by law;

4. To deal with millers and processors and attend to the issuance of quedans and warehouse receipts of the produce due him/her;

5. To exercise the rights of pre-emption and redemption.

B. Right of pre-emption: preferential right to buy the agricultural landholding under reasonable terms and conditions in case the agricultural lessor decides to sell the same. If there are two or more agricultural lessees, each shall be entitled to said preferential right only to the extent of the area actually cultivated by him (Sec. 11 R.A. No. 3844).

C. Right of redemption: right to redeem the landholding at a reasonable price and consideration in case the agricultural lessor sold the same to a third person without the agricultural lessee’s knowledge, pursuant to Section 12 of R.A. No. 3844 .Where there are two or more agricultural lessees, each shall be entitled to said right of redemption only to the extent of the area actually cultivated by him.

D. Obligations of Agricultural Lessees:

1. To cultivate and take care of the farm, growing crops, and other improvements on the land and perform all the work therein in accordance with proven farm practices;



2. To inform the agricultural lessor within a reasonable time of any trespass committed by third persons upon the farm, without prejudice to his direct action against the trespasser;

3. To take reasonable care of the work animals and farm implements delivered to him by the agricultural lessor.

4. To keep the farm and growing crops attended to during the work season; and

5. To pay the lease rental to the agricultural lessor when it falls due.

E. Prohibitions on Agricultural Lessees:

1. To contract to work additional landholdings belonging to a different agricultural lessor or to acquire and personally cultivate an economic family-size farm.

However, said prohibition applies only if: (1) there was no consent from the original lessor and (2) the land presently cultivated is already of sufficient size to fully occupy the lessee or his/her immediate household in the cultivation.

2. To employ a sub-lessee on his landholding.

Nevertheless, in case of illness or temporary incapacity, he may employ laborers whose services on his landholding shall be on his account; and

3. Failure of the agricultural lessee to adopt proven farm practices necessary for the conservation of the land, improvement of its fertility and increase of its productivity.

This prohibition shall not apply if the agricultural lessee is financially incapacitated and he cannot avail of any credit facility.



What are the basic rights and obligations of and prohibitions on landholders?

A. Rights of the Landholder:

1. To choose the kind of crop and the seeds which the tenant shall plant in his holdings; provided, however, that if the tenant should object, the court shall settle the conflict, according to the best interest of both parties;

2. To require the use of fertilizers of the kind or kinds shown by proven farm practices to be adapted to the requirements of the land;

3. To inspect and observe the extent of compliance on the part of the tenant with the terms and conditions of their contract;

4. To deal with millers or processors in representation of the tenant, in cases where the crop has to be sold in processed for before division, and the tenant has no representative.

B. Obligations of the Landholder:

1. To furnish the tenant an area of not less than one thousand square meters where the latter may construct his dwelling, raise vegetables, poultry, pigs, and other animals, and engage in minor industries, the products of which shall accrue to the tenant exclusively;

2. To keep the tenant in peaceful possession and cultivation of his landholdings, which are the subject matter of the contract.

C. Prohibitions to the Landholder:

1. To not dispossess the tenant of his holdings except for cause;

2. To be responsible for the payment of taxes levied by the Government upon the land which is the subject-matter of the contract. It shall be unlawful to make the tenant bear part or all of the same, either directly or indirectly;



3. To not require the tenant to bear, directly or indirectly, any part of the rent,“canon” or other consideration which he, the former, may be under obligation to pay to a third person for the use of the land.

What are the grounds for termination of tenancy relations?

The tenancy relationship is extinguished by the voluntary surrender of the land by, or the death or incapacity of, the tenant, but his heirs or the members of his immediate farm household may continue to work the land until the close of the agricultural year. In case of death of the landholder, his heir or heirs shall likewise assume his rights and obligations.

The expiration of the period of the contract as fixed by the parties, and the sale or alienation of the land do not by themselves extinguish the relationship. In the latter case, the purchaser or transferee shall assume the rights and obligations of the former landholder in relation to the tenant.

What are the grounds for ejectment of tenants?

Any of the following shall be sufficient cause for the dispossession or ejectment of a tenant from his landholdings (Note: there must be final and executory order from the DARAB or court to make the ejectment valid and effective):

A. The bona fide intention of the landholder to personally cultivate the land himself or through the employment of farm machinery and implements;

B. When the current tenant violates or fails to comply with any of the terms and conditions of the contract or any of the provisions of this Act;

C. The tenant’s failure to pay the agreed rental or to deliver the landholder’s share, except when the tenant’s failure is caused by a fortuitous event or force majeure;



D. When the tenant uses the land for a purpose other than that specified by agreement of the parties;

E. When the tenant through negligence permits serious injury to the land which will impair its productive capacity;

F. Conviction by a competent court of a tenant or any member of his immediate family or farm household of a crime against the landholder or a member of his immediate family.

ADMINISTRATIVE ORDERS NOS. 02, 2014 What is covered by Administrative Order No. 02 series of 2014 issued by the DAR?

Administrative Order No. 02 series of 2014 applies to all tenanted coconut landholdings, with or without a leasehold agreement, which have been affected by fortuitous events or natural disasters or calamities.

Why was Administrative Order No. 2 series of 2014 issued?

It was issued by the DAR to attend to and improve the economic condition of the agricultural lessees-tenants on coconut lands devastated by fortuitous events or natural disasters, and to address and mitigate the effect of such fortuitous events or natural disasters on landholdings devoted to coconut production.

What is a fortuitous event?

This refers not only to events that cannot be foreseen, but also those which are foreseen but unavoidable. It can be an “act of God” or “act of man. An “act of God” refers to natural calamities or occurrences (examples: typhoons or floods). On the other hand, an “act of man” refers to man-made occurrences or events (examples: riots, strikes, and wars).



What is a natural disaster or calamity?

It is an event that happens because of the processes of nature. It usually brings harmful effects and economic damage to the community. Natural disasters include typhoons, floods, storm surges, earthquake, volcanic eruptions, landslides, and droughts. These events may result to loss of life and damage to property.

What are heavy-damaged coconut trees?

They refer to coconut trees with broken branches and twisted/broken fronds60 where at least 50% of the immature or unripe nuts have fallen. Such trees would need about two (2) to three (3) years to recover production.

What are totally-damaged coconut trees?

These are trees which are crownless or have fallen down, or where the fronds are heavily shaken and/or cracked. These are trees which have no chance of survival.

What is a principal crop?

It is any product/crop raised from the dominant cultivation or principal use of the land, and harvested on a regular basis.

May a tenant-lessee be ejected due to non-payment of lease rentals as a result of a fortuitous event or a natural calamity?

No. The tenant-lessee can only be removed from his/her farm holding when his/her dispossession has been authorized by an appropriate body or court in a judgment that is final and executory.

60 Fronds refer to the leaf or leaf-like part of the coconut tree.



What are the liabilities of a landholder- lessor if he/she ejects or removes his/her tenant-lessee from the land or landholdings without Court authorization?

If the landholder-lessor ejects or removes his tenant-lessee from the land or landholdings without proper Court authorization, the landholder-lessor may be:

A. Fined or imprisoned;

B. Held liable for damages suffered by the agricultural lessee, in addition to the fine or imprisonment for unauthorized dispossession;

C. Held liable for payment of attorney’s fees incurred by the lessee; and

D. Ordered to remunerate any income lost by the lessee while illegally deprived of his tillage.

The lessee shall be reinstated upon order by the Department of Agrarian Reform Adjudication Board (DARAB) or a competent Court.

What can a tenant-lessee do then in case of a fortuitous event or natural calamity?

The tenant-lessee shall renegotiate a new leasehold agreement with the landowner. The new agreement will specify and list the new terms and conditions particularly referring to the payment of the lease rental, planting of crops, and change of crop (if necessary), and the like.

Does this mean that the tenancy relationship has been extinguished?

No. The new agreement does not mean that the tenancy relationship has been extinguished or terminated by the fortuitous event. The tenancy relationship will still continue to take effect despite the fortuitous event.



Can the landowner-lessor compel the tenant-lessee to change the kind of crop to be planted?

No. The landowner-lessor can only propose such change to the tenant-lessee. In case of disagreement as to the proposed change, the disagreement shall be settled by the Court according to the best interest of the parties concerned.

The agricultural lessee cannot be ejected as a consequence of a change in the crop to be planted.

What shall be the value of consideration (rent or payment) for the lease?

The consideration (rent or payment) for the lease shall not be more than the equivalent of twenty five per cent (25%) of the average normal harvest during the three agricultural years immediately preceding or prior to the date the leasehold was established, after deducting the amount used for seeds and the cost of harvesting, threshing, loading, hauling, and processing whichever is applicable.

If the land has been cultivated for less than three years, the initial consideration shall be based on the average normal harvest of the preceding year/s when the land was actually cultivated, or on the harvest of the first year in the case of newly cultivated lands, if that harvest is normal.

What is a normal harvest?

It is the usual, ordinary, or regular produce or production obtained from the land when the land is not affected by any fortuitous event or natural calamity like drought, earthquake, volcanic eruption, and the like.

What is an agricultural year?

It refers to the period of time required for raising a particular agricultural product. This includes the preparation of the land, sowing, planting,



and harvesting of crops, and whenever applicable, threshing of said crops.

However, in case of crops that yield more than one harvest from planting, the ”agricultural year” shall be the period from the preparation of the land to the first harvest and thereafter, from harvest to harvest. In both cases, the period may be shorter or longer than the calendar year.

What shall happen if the coconut trees in the landholding are heavily- or totally- damaged due to a fortuitous event or calamity/disaster resulting in a crop failure?

When the land is being rehabilitated or reconditioned and when the principal crop is still in the gestation stage or where production has not reached its average normal harvest, the tenant-lessee shall be allowed to plant other crops, which shall serve as temporary crops.

Hence, the tenant-lessee shall continue to cultivate the land even if the coconut trees are destroyed and totally-damaged because of a calamity.

Can the tenant – lessee cut and transport the coconut trees?

The affected tenant-lessee shall be allowed to cut and transport coconut trees, provided that the necessary permit to cut shall be obtained and secured by the tenant-lessee from the Philippine Coconut Authority (PCA).

A coconut tree may be cut when the tree is seriously disease-infested and beyond rehabilitation or reconditioning, or when the tree is severely or seriously damaged by typhoon or lightning.

Who has the authority to issue a permit to cut?

According to RA 8043, the PCA has the exclusive authority to grant a permit for the cutting of coconut trees. It may, however, be delegated to the city or municipal mayors by the PCA.



How can the tenant-lessee obtain a permit to cut?

The tenant-lessee must first secure a certificate under oath from the barangay captain of the place where the coconut trees to be cut are located. This certificate shall serve as an oath or promise that the tenant-lessee has already planted the equivalent number of coconut trees that he wants to be cut and has applied for to be cut.

The tenant-lessee shall then pay an application fee in the amount of One Hundred Pesos (P100.00) for every coconut tree intended to be cut. This application fee shall be payable to the PCA.

What shall be the division of the proceeds of the cut coconut trees?

The cost of cutting and hauling shall first be deducted from the net proceeds of the cut coconut trees. The party or person who paid for the expenses of cutting and hauling shall be reimbursed for his expenses. After deducting the cost of cutting and hauling, the net proceeds shall then be divided between the tenant-lessee and landowner-lessor according to their agreement. However, the share of the tenant-lessee shall never be less than seventy-five percent (75%) of the net proceeds. This means that the share of the tenant- lessee may be more than Seventy-Five Percent (75%) but it cannot be less than Seventy-Five Percent (75%).

Example: The tenant-lessee may have a share of 75% to 100% of the proceeds of the cut coconut trees. However, anything less than 75% is prohibited.

What if there is disagreement between the landowner-lessor and the tenant-lessee?

In case of disagreement, or if the landowner-lessor can no longer be located, the 75% share in favor of the tenant-lessee shall be imposed. In this case, the landowner-lessor shall only have a maximum of Twenty- Five Percent (25%) share of the entire proceeds of the cut coconut trees.

If the landowner is present, the amount shall be given to him/her. However, if the landowner is not present or refuses to receive his/her



share, the Municipal Agrarian Reform Program Officer (MARPO) shall advise the landowner or his/her successor-in-interest (representative of the landowner) in writing and by registered mail. Furthermore, the 25% share of the landowner that was not claimed shall be deposited under landowner’s name in the nearest Land Bank of the Philippines branch in the locality, within thirty days from the receipt thereof.

Why is the tenant given 75% of the net proceeds while the landowner gets only 25%?

The 75%-25% ratio in favor of the tenant-lessee is provided for and created by the law because the tenant-lessee largely contributes to the production of crops, while the landowner-lessor merely contributes his land.

Hence, this ratio gives meaning to social justice in favor of the tenant- lessee.

What will happen if the landholder-lessor sells, alienates, or transfers the legal possession of the landholding to another person?

The agricultural leasehold shall not be extinguished or terminated by a sale, alienation, or transfer made by the landowner-lessor to another person. The purchaser or transferee shall be subrogated to the rights and substituted to the obligations of the agricultural lessor.

In short, the leasehold agreement between the landholder-lessor and tenant- lessee shall continue to take effect, even if the land is sold by the landholder- lessor to a purchaser or transferee.

What will happen if any of the parties dies or becomes permanently incapacitated?

If the tenant-lessee dies or becomes permanently incapacitated, the agricultural leasehold agreement shall continue between the agricultural lessor and the person who can cultivate the landholding personally.



The person who will replace the tenant-lessee and continue the leasehold agreement shall be chosen by the landholder-lessor within one (1) month from the death or permanent incapacity of the tenant-lessee. The choice of the landholder-lessor shall be from the following persons:

A. surviving spouse;

B. eldest direct descendant by consanguinity; or

C. next eldest descendant or descendants in the order of their age.

In case the death or permanent incapacity of the lessee occurs during the agricultural year, the landholder-lessor shall make his choice at the end of the said agricultural year.

If the landholder-lessor fails to make his choice within the said agricultural year, the person who will continue as the “substitute tenant-lessee” shall be in accordance with the order provided above.

In case of death or permanent incapacity of the landholder-lessor, the leasehold agreement shall bind his legal heirs (like the spouse or children of the landholder- lessor).

OPERATING PROCEDURES What are the duties and obligations of the marpo?

A. The MARPO, when urged or requested by either the tenant-lessee or landowner-lessor, shall validate the information that the tenanted coconut landholdings are affected by a fortuitous event or natural calamity/disaster. The MARPO shall immediately issue a certification that a certain landholding is damaged by a fortuitous event or natural calamity/disaster.

B. Upon validation, the MARPO shall immediately send an invitation letter to the tenant-lessee and the landowner-lessor for a conference. The MARPO shall have the following obligations:

i. To inform the parties that the tenant-lessee has the right to



continue to exercise his rights under the tenancy relation despite failure to pay lease rental;

ii. To help formulate a new leasehold agreement according to existing laws, and rules and regulations. This new leasehold agreement shall be respected;

iii. To determine or compute the leasehold rental in accordance with the applicable rules and regulations, in case parties do not reach an agreement. After that, the MARPO shall issue the Provisional Leasehold Rental (PLR), which must be followed by both parties;

iv. In case any of the parties disagrees with the PLR, the same shall be submitted to the PARAD for the determination of lease rental;

v. In the meantime, while the PARAD is in the process of determining the lease rental, the PLR shall be observed and complied with by the parties until the PARAD is able to fix the lease rentals.

ADMINISTRATIVE ORDER NO. 08 SERIES OF 2014

What is Administrative Order No. 08 series of 2014?

Administrative Order No. 8 series of 2014 is a set of rules and regulations issued by the DAR for the benefit of tenant-lessees of coconut lands.

Why was Administrative Order No. 08 series of 2014 issued by the DAR?

It was issued by the DAR to remedy the recent massive infestation of scale insects, known locally as “Cocolisap”.

In view of the very serious threat and danger these “Cocolisap” insects have presented to the economic condition and livelihood of the tenant-



lessees on coconut lands or landholdings, as well as on other lands or landholdings planted with high-value crops (like coffee, cacao, mangosteen, etc.), the DAR crafted these rules and regulations to help and assist the tenant-lessees.

What is covered by Administrative Order No. 08 series of 2014 issued by the DAR?

These rules and regulations apply to all tenanted coconut landholdings with or without a leasehold agreement which have been affected by “Cocolisap”.

AO No. 8 series of 2014 also applies to all tenanted lands or landholdings planted with high-value crops (like coffee, cacao, mangosteen, etc.) which are cultivated under coconut trees or near coconut plantations, with or without a leasehold agreement, and which have been affected by “Cocolisap”.

What are high-value crops?

High-value crops include vegetables, fruits, spices, and cutflowers. The table below shows examples of high-value crops. The enumeration is not exclusive. There are many more examples of high-value crops not mentioned in the table below, such as patatas, peanut, talong, ubi, upo, cashew, guapple, jackfruit, papaya, and watermelon.

VEGETABLES FRUITS SPICES CUTFLOWERS

Ampalaya Banana Garlic Orchids

Cabbage Calamansi Ginger (Luya) Chrysanthemum

Gabi Coffee Hot Pepper

Green Leafy Vegetables Citrus Fruits Black Pepper

Kangkong Durian Sweet Pepper

Kamatis Mango

Potato Mangosteen



If the coconuts or the high-value crops have been infested or affected by “Cocolisap”, can the tenant-lessee be dispossessed of and removed from his/ her farmholding because of non-payment of lease rentals?

No. A tenant-lessee shall not be ejected or removed from his/her farmholding due to non-payment of lease rentals as a result of the infestation of the coconuts or high-value crops by “Cocolisap”.

The tenant-lessee can only be removed from his/her farm holding when his/ her dispossession has been authorized by an appropriate body or court in a judgment that is final and executory.

What can a tenant-lessee do in case his/her coconuts or high-value crops have been affected and infested by “Cocolisap”?

The tenant-lessee shall renegotiate the existing leasehold agreement, or negotiate a new one, with the landowner. The new agreement will specify and list the new terms and conditions of their tenancy relationship or arrangement. These terms and conditions particularly refer to the payment of the lease rental, planting of crops, and change of crop (if necessary) and upon mutual agreement.

Does this mean that the tenancy relationship has been extinguished?

No. The new agreement does not mean that the tenancy relationship has been extinguished or terminated due to the “Cocolisap” infestation of the tenant-lessee’s farmholding.

The tenancy relationship will still continue to take effect despite the “Cocolisap” infestation.



What shall be the value of consideration (rent or payment) for the lease?

The consideration (rent or payment) for the lease shall not be more than the equivalent of twenty five per cent (25%) of the average normal harvest during the three agricultural years immediately preceding or prior to the date the leasehold was established, after deducting the amount used for seeds and the cost of harvesting, threshing, loading, hauling, and processing, whichever is applicable.

If the land has been cultivated for less than three years, the initial consideration shall be based on the average normal harvest of the preceding year/s when the land was actually cultivated, or on the harvest of the first year in the case of newly cultivated lands, if that harvest is normal.

What is the rule during rehabilitation of the landholdings infested and damaged by the scale insects or “Cocolisap”?

The landholdings or land shall be rehabilitated or reconditioned by re- planting.

While the landholding or land is being rehabilitated or reconditioned, and while the crops are in the gestation stage or where production has not yet recovered to its average normal harvest, the tenant-lessee shall be allowed to plant other crops on the landholding or land.

Can the tenant-lessee cut and transport the coconut trees?

Yes. The affected tenant shall be allowed to cut and transport coconut trees which have been affected by scale insects, in accordance with the provisions of A.O No. 2, Series of 2014 as previously discussed.

UntitledPrivately Claimed

Agricultural Lands (UPALs)

untitled privately claimed agricultural lands (upals)


In DOJ Opinion No. 100, Series of 201261, it was mentioned that there are approximately 26,440 hectares of UPALs affecting an estimated

15, 760 FBs and 1,237 private claimants. The issue on UPALs hinges on the jurisdiction of DAR and DENR in the coverage and distribution of these lands under agrarian reform. Furthermore, the clarification on the jurisdiction of coverage of these lands will guide the LBP in identifying which lands are compensable and the amount of compensation to be given to the owner claimant of the UPALs.

In 2014, the DAR and the DENR issued a Joint Administrative Order (JAO)62 setting the guidelines in the disposition of UPALs. The JAO defined the limits of jurisdiction of DAR and DENR in the coverage of UPALs, and clarified the rules in the disposition of UPALs by the DAR under the applicable limit, Specifically, Section 3 of the JAO states the its objectives as follows:

A. To define the limits of jurisdiction of DAR and DENR in the cover-age of UPALs under CARP and the disposition thereof in excess of the applicable titling limit on the ownership of public lands;

B. To clarify the procedure in the validation and documentation of vested rights of the landowner-claimant; the subdivision survey and disposition of the areas to be retained by DAR for disposition under CARP and the excess of the applicable titling limit to be retained in DENR’s jurisdiction; and

C. To clarify the rules and facilitate the disposition of UPALs by the DAR under the applicable titling limit.

61 DOJ Opinion No. 100, Series of 2012, dated November 13, 2012 refers to then DAR Secretary Virgilio delos Reyes’ request for opinion on queries relating to the legal character of UPALs in excess of twelve (12) hectare titling limit as prescribed in Commonwealth Act No. 141 (CA 141).62 Joint DAR-DENR Administrative Order No. 3 Series of 2014 was issued on March 26, 2014.

Introduction



What is an Untitled Privately-claimed Land (UPAL)?

UPALs are tracts of A&D public agricultural lands claimed by a landowner-claimant based on recognizable private rights in accordance with existing laws, rules and regulations (Sec 2.12, JAO 3, Series of 2014).

What Rules govern the disposition of UPALs under the CARP?

The guidelines for the disposition of UPALs under the CARP are contained in Joint DAR-DENR Administrative Order No. 3, Series of 2014 (JAO 3, Series of 2014).

What is the coverage of JAO 3, Series of 2014 (Section 4, JAO 3, Series of 2014)?

JAO 3, Series of 2014 covers all UPALs. UPALS shall be categorized as follows:

A. Lands covered under R.A. 6657, as amended, initially identified by the DAR in its database as potential UPALs;

B. Original Land Title (OLT) distributed but not yet documented (DNYD) lands covered under P.D. No. 27 and E.O. No. 228 where the documentation is ongoing at the DARMO/DARPO.

C. Other lands that may later be identified jointly by the DAR and DENR as UPALs.

D. JAO 3 Series of 2014 shall not apply to UPALs already issued with COD prior to its effectivity. The validity of acts already

untitled privately claimed agricultural lands



undertaken in accordance with prior rules and procedures on land acquisition and distribution of private agricultural lands shall still be governed by the rules and procedures governing at the time the said acts were undertaken (Section 9, JAO 3 Series of 2014).

What are the criteria for the determination whether a person has acquired a recognizable private right over an untitled landholding (Section 5.1, JAO 3, Series of 2014)?

A. Continuous occupancy and cultivation by oneself or through one’s predecessor’s-in-interest for at least thirty (30) years;

B. Classification of the land is alienable and disposable;

C. Payment of the real estate tax thereon; and

D. Absence of any adverse claims on the land

What is the maximum titling limit for the acquisition and disposition of identified UPALs?

The maximum titling limit of twelve (12) hectares under the 1987 Constitution shall be observed in the acquisition and disposition of identified UPALs covered under the OLT and the CARP.

However, the applicable titling limits as prescribed under previous Constitutions (1935 and 1973), shall also be respected provided that the vested rights of the landowner-claimant over the land had accrued during the effectivity of these Constitutions.



The corresponding titling limits are as follows:

Period when the Vested Right of the Landowner-

Claimant Over the land had accrued

Operative Law

Applicable Titling Limit

(Areas in Hectares)

From May 14, 1935 to January 16, 1973

Section 2, Article XIII, 1935 Constitution 24 Has.

From January 17, 1973 to February 1, 1987

Section 11, Article XIV, 1973 Constitution 24 Has.

From February 2, 1987 to Present

Section 3, Article XII, 1987 Constitution 12 Has.

What are the steps for the disposition of UPALs (Section 6, JAO 3, Series of 2014)?

The main steps are:

A. Validation and Documentation of UPALs;

B. Issuance of NOCs or Acceptance of VOS (for landholdings voluntarily offered by the landowner-claimant);

C. Conduct of Subdivision Survey

How will the Validation and Documentation of UPALs proceed (Section 6, 6.1, 6.2, JAO 3, Series of 2014)?

Either the DAR or the DENR shall issue a certification that the subject landholding is considered as UPAL. The certification shall proceed as follows:



1. Untitled tenanted rice and corn lands which have been decreed as covered under OLT pursuant to PD No. 27 and EO No. 228.

A. By operation of law, these lands are deemed private lands as of October 21, 1972.

B. The DAR shall issue a Certification that the subject landholdings are covered under PD No.27 and that the farmer-tenants are deemed owners of the said land. In issuing the certification, the DAR will use CARPER-LAD Form No. 2-A.

C. The DAR may request for documents from DENR and other agencies as may be necessary.

2. UPALs covered under CARP under R.A. 6657, as amended.

A. The concerned DARMO shall submit the list of UPALs to the DENR-CENR Office for validation and certification.

B. The DENR shall issue a certification that the landowner-claimant had acquired a vested right on the land under any of the applicable Philippine Constitutions within the periods specified in Section 5.2 of JAO 3 Series of 2014 (Please refer to No. 6 above).The certification shall also state that no title has been issued by any government agency and court over the land. In issuing the certification, the DENR will use CARPER-LAD Form 2-B.

How will the Issuance of NOCs or Acceptance of VOS (for landholdings voluntarily offered by the landowner-claimant) proceed(Section 6.2, JAO 3 Series of 2014)?

The DAR shall issue a Notice of Coverage on all UPALs. For purposes of the issuance of NOC (or Acceptance of VOS), UPALs are categorized as follows:



A. UPALs without NOC:

1. The DAR shall issue an NOC on all UPALs based on the list of initially-identified UPALs from its database covering the entire area of the landowner-claimant.

2. In issuing the NOC, the DAR shall use CARPER LAD Form No. 3-D. It shall contain the following statements:

i. That the final area to be acquired and compensated shall be subject to validation and certification/confirmation of the DENR as provided under Section 6 of JAO 3, Series of 2014

ii. That the landowner-claimant has the right to select the exact location of the applicable titling limit and his/her retention area, if any. In case the landowner-claimant opts to retain, it shall be taken from the landowner-claimant’s selected area, which must be compact and contiguous.

B. UPALs with previously issued NOC or Accepted Letter for VOS

Upon receipt of the certification from the DENR-CENRO, the DAR-PARPO shall notify the landowner-claimant of the following information using CARPER-LAD Form No. 3-E:

1. The maximum area of the applicable titling limit based on the certification from the DENR-CENRO;

2. Option of the landowner-claimant to avail of his/her right to select the exact location of the applicable titling limit and, if applicable, his retention area which must be compact and contiguous, to be taken from the applicable titling limit;

3. Failure of the landowner-claimant to choose the location of the applicable titling limit within thirty (30) days from receipt of the Letter Advice (CARPER-LAD Form 3-E) shall be deemed waiver to choose, and upon the recommendation of DAR, the DENR shall confirm the location of the area of said applicable titling limit;



4. Failure of the landowner-claimant to manifest and select the retention area within (30) days from receipt of such advice shall also be deemed a waiver to retain and the entire applicable titling limit shall be processed for acquisition and distribution by the DAR

C. UPALs with pending VOS application

The DAR shall issue an NOC to all lands offered under VOS without Acceptance Letter for VOS. The NOC, a CARPER-LAD Form No. 3-D shall contain the following:

1. The final area to be acquired and compensated shall be subject to validation and certification/confirmation of the DENR as provide under Section 6.1 of JAO 3 Series of 2014 (on Validation and Documentation of UPALs);

2. The landowner-claimant has the right to select the exact location of the applicable titling limit and his/her retention area, if applicable and in case he/she opts to retain, to be taken from the said applicable titling limit, which must be compact and contiguous.

3. Upon receipt of DENR’s certification (CARPER-LAD Form 2-B) on UPALs with NOCs within the applicable titling limit, the DAR-PARPO shall issue the Letter Advice to the landowner-claimant using CARPER-LAD Form No. 3-E, and shall proceed with the Land Acquisition and Distribution (LAD) process.

How will the Conduct of Subdivision Survey proceed (Section 6.3, JAO 3 Series of 2014)?

A. The DAR shall conduct the subdivision survey of the entire land. It will also delineate and segregate the applicable titling limit from the area in excess of what is allowable.

B. The applicable titling titling limit shall include the following:

1. Retention area, if any;



2. Area for distribution to the farmer beneficiaries;

3. Area for the preferred CARP beneficiaries, if any; and

4. Non-CARPable areas such as roads, bridges, etc.

C. The area in excess of the applicable titling limit shall be surveyed as one (1) lot. This will be designated and indicated on the survey plan as “Public Land.”

D. The subdivision survey shall be submitted to the DENR for approval.

What is the process of the disposition of UPALs under JAO 3 Series of 2014?

A. CARP-covered areas

1. CARP-covered lands shall be acquired and distributed, using the following guidelines:

i. DAR AO 7, Series of 2011, as amended (Revised Rules and Procedures Governing the Acquisition and Distribution of Private Agricultural Lands Under Republic Act 6657, As Amended);

ii. Joint DAR-DENR MC Nos. 14, 19 and 2003-1;

iii. Other pertinent rules and regulations

2. A Free Patent for the retained area of not more than five (5) hectares shall be issued by DENR to the landowner-claimant.

3. The landowner-claimant shall be compensated by the LBP, pursuant to PD 27/EO No. 228, EO No. 407, and RA No. 6657, as amended, and in accordance with existing policies, rules and regulations.



B. Areas in Excess of the Applicable Titling Limit:

1. Areas in excess of the applicable titling limit shall be retained under DENR’s jurisdiction to be disposed in accordance with the provisions of CA No. 141, as amended, and other pertinent rules and regulations.

2. The DARMO may submit other documents to DENR-CENRO such as the list of actual tillers/occupants, if any, of the excess area for reference purposes in the disposition of the land

SOCIALIZED CREDIT FOR FARMERS:

AGRARIANPRODUCTION

CREDIT PROGRAM (APCP)

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socialized credit for farmers: agrarian production credit program (APCP)


One of the issues confronting farmers as they become landowners is making their lands productive. In order to do so, they need

resources, both financial and technical, to sustain and enhance their crop production. Although the CARPER has mandated the provision of support services to farmer beneficiaries prior to and after they become owners, only a few are able to maximize financial and technical assistance from the government.

Obtaining credit facilities from commercial banks are problematic for farmer beneficiaries as they demand stringent requirements that are difficult for farmers to comply with. “In the absence of formal credit markets, the farmers turn to informal money lenders for their capitalization requirements63.” Without initial capitalization, socialized credit, and technical and social support, CLOA holders are vulnerable to financial, social and climate risks and hazards.

The Agrarian Production Credit Program (APCP) is a program implemented by the DA, DAR, and the Land Bank of the Philippines (LBP). Its recipients are ARB organizations (ARBOs) which are not yet eligible to avail of loans from LBP.64Eligible ARBOs avail of loans under the program and in turn re-lend to qualified ARBs for purposes of financing agricultural production projects and activities65.

63 DAR Memorandum Circular 9, Series of 2013.64 Joint DA-DAR-DENR-LANDBANK Memorandum Circular. Series of 2014.65 Joint DA-DAR-DENR-LANDBANK Memorandum Circular. Series of 2014.

Introduction



AGRARIAn production credit program (APCP)

What is APCP?

The Agrarian Production Credit Program (APCP) is an initiative of the government aimed at providing financial and technical assistance to the farmer beneficiaries of the agrarian reform program. This aims to prepare the farmers, particularly the agrarian reform beneficiaries (ARBs), in enhancing the productivity of their land once it was turned over to them.

The APCP allows an ARB through his organization to borrow funds needed for sustaining his crop production activities, as well as other farming-related projects.

Who are the target beneficiaries of the APCP?

The APCP caters to farmer beneficiaries all over the country who were granted lands under PD No. 27, R.A. 6657, R.A. 9700, settlement and other land tenure improvement programs of the DAR and the DENR, including CLOA and Community-Based Forest Management Agreement (CBFMA)holders, and those farmers under leasehold operations.

Farmers from disaster-stricken areas may be prioritized upon approval of the National Program Management Committee.

What benefits can be availed from the APCP?

The APCP will provide assistance for the farmers in their regular crop production activities. Aside from that, the program will provide assistance to implement other income-generating activities, like agricultural enterprise and livelihood projects; and other support services, such as marketing, crop insurance, and accessibility to farming facilities.



The program will also help strengthen the ARBOs and people’s organizations (PO) as institutions through its capacity building component, which aims to develop them as eligible conduit that will ensure viability and profitability of the projects.

Who are the eligible borrowers of this program?

If the organization is an active and registered ARBO, it will be highly eligible to borrow from the APCP. Other farmer and people’s organizations are also eligible as long as there are ARB and ARB household members. Non-government organizations, cooperatives, and rural banks can also be eligible conduits, as long as they can comply with the requirements.

What are the criteria for eligibility to avail APCP?

C. ARBOs:

1. Be registered;

2. Be operational for at least six (6) months;

3. Have a membership in which majority (50% + 1) is comprised of ARB or ARB household members

4. Have an established lending policy;

5. Have a management team, composed at least of a manager, a cashier, and a bookkeeper.

B. Non-ARBO organizations:

1. Be registered;

2. Operational for at least 6 months;

3. Have ARB and ARB household members;



4. Have an established lending policy;

5. Have a management team, composed at least of a manager, a cashier, and a bookkeeper.

Are newly registered organizations eligible to borrow from the APCP?

Yes. However these newly registered organizations should be operational for at least six (6) months. Their application should be supported with at least three (3) minutes of the meeting held within 6 months prior to the loan application.

Can an individual borrow from the APCP?

No. All transactions are coursed through the organizations. The organization is in charge of the distribution of funds among the members.

Can a member of an ARBO but not an ARB or an ARB household member, be eligible to a sub-borrower of the APCP?

No. Only ARBs and ARB household members are allowed to be sub-borrowers.

What are the requirements for an ARB or an ARB household member to be an eligible sub-borrower?

If the applicant is the actual tiller of the land and has a land title, then he/she is an eligible sub-borrower. Farmers whose lands have been covered by payments to the land owners with certificate of cash deposit and have been assigned with electronic primary entry book number are also eligible.



Can members still avail of the APCP if their organization has already availed some credit services of the Land Bank?

Yes, but the members must submit a copy of their previous loan agreement with Land Bank. This will be further assessed for approval.

What activities/projects can be applied for in the APCP?

The applicant is allowed to loan for (1) agricultural crop production needs; (2) agri-enterprise projects; and (3) other livelihood projects related to crop production.

What kinds of crops are covered by the APCP?

Common crops produced in the country such as rice, corn, sugarcane, coconut, cacao, and coffee among others, are covered by the program.

What are agri-enterprise and livelihood projects?

Agri-enterprise and livelihood projects, as defined by the DAR, are any lawful economic activity, aside from crop production, that aims generate more income for the ARBs. This includes processing, packaging, transporting, trading, and vending, among others, of agricultural and forest-based products.

How many projects can an organization apply from the APCP?

An organization is allowed to loan for a maximum of three (3) projects.



What is the maximum amount that an organization can borrow from the APCP?

The LBP will determine the borrower’s total credit requirement for crop production, depending on the type of crop an organization is producing. If the said organization is borrowing for an agri-enterprise or livelihood project, it is allowed to borrow up to a total of one million pesos (Php 1,000,000.00) given that the organization do not have an existing crop production loan.

If the organization already has an existing loan for crop production, it is allowed to borrow up to only 10% of its previous loan record.

What are the terms of the loan?

The term of the loan varies depending on what type of project is being availed of.

For crop production, the term depends on the length of production cycle of the chosen crop. However, this shall not exceed seven (7) years. There is also a grace period of three (3) years, depending on the cash flow. Loans for semi-annual or annual crops such as rice and corn may have a shorter term than loans applied for plantation crops (coffee, cacao, and coconut).

For working capital loans allotted for agri-enterprise and livelihood, the term depends on the length of the project’s operating cycle.

For loans applied for acquisition of fixed assets such as tractors and processing machines, the term shall not exceed five (5) years. Length of the term depends on the project completion, cash flow, and the condition of the acquired asset.

What modes of payment are acceptable for the APCP?

There are two ways to pay for the loan: (1) via debit account; and (2) over-the-counter.



For the first option, the organization shall open a Land Bank savings deposit account in the nearest branch. After securing an authority to debit arrangement with the borrower, the Land Bank will automatically debit the payment from this account on a regular basis.

Any LBP servicing branch are open for over-the-counter payments.

What is the interest rate?

Interest rate is 8.5% per year for short-term loans, and 9.5% per year for term loans.

What happens if the borrower fails to pay on time?

There will be a 3% penalty per year based on the unpaid principal and interest. The period will begin on the day after the due date and will end once the amount due is settled.

What will be the consequence if the borrower fails to pay within the seven (7) year term?

There will be a three (3) year collection period starting from the date the loan amount has turned past due. LBP will send collection letters and a final demand letter within this period. If the borrower still fails to pay within the collection period, all the loan documents will be turned over to the DA.

What is the implication if the documents are turned over to DA?

Turning over your loan documents does not remove your obligations to APCP. This will be further assessed by the department.



Can organizations which fail to pay on time re-apply for an APCP loan with different terms and conditions?

Yes, but this could only be done once. This is called loan restructuring with refinancing. However, not everyone is qualified to avail this privilege. Members should provide a valid reason for failing to pay on time.

Where can applications for APCP loans be submitted? Do applicants submit it directly to Land Bank?

No. Loan application will be coursed through PARPO/MARPO, if the borrowers are CLOA holders; and through the Provincial Environment and Natural Resources Officer (PENRO) / Community Environment and Natural Resource Officer (CENRO), if borrowers are CBFMA holders.

What is the procedure for the application of APCP loans?

Application for APCP follows a step-by-step process:

1. The PARPOs and PENROs will identify the existing ARBOs, POs, and farmer organizations that are eligible for credit assistance. They will also map out unorganized ARBs, and prepare them for availing support services.

2. If the applicant is an eligible conduit, it must prepare a business and budget plan for the planned project.

The applicant shall prepare a business and budget plan for agricultural crop production, agri-enterprise, and other livelihood loan projects. It may also ask assistance from the PARPO. And with its help, the Provincial Program Beneficiaries Development Division (PPBDD) or any other bodies shall conduct an assessment and planning sessions to help the organization determine the amount of loan needed and prepare the requirements and documents needed for the application.



3. The applicant will submit the necessary documents to the MARPO/PARPO or CENRO/PENRO, including a letter of intent to apply for a loan under the APCP, and the business and budget plan.

4. The MARPO/PARPO or CENRO/PENRO will review and validate the submitted documents. Once approved, they will issue a certification of qualified ARBs or ARB household members.

5. The MARPO/PARPO or CENRO/PENRO will also issue a certification on land ownership/tenurial instrument to each CLOA holder or CBFMA holder members of the organization. If the organization is an ARBO/PO/FO, it shall also issue a certification attesting that the applicant is an official member and actual cultivator of the awarded land.

6. The MARPO/PARPO or CENRO/PENRO will then endorse the applicant to the Land Bank Lending Center through a certification with the submitted documentary requirements and business & budget plan as attachments. The applicant needs to request for a copy of this certification.

7. The application will then be assessed by the Land Bank. When approved, the loan will be released on a date depending on the volume of applications and speed of processing.

What are the documents and write ups needed for the application?

The following documents shall be prepared by the applicant to be submitted to the PARPO/MARPO (if borrowers are CLOA holders) or PENRO/CENRO (if borrowers are CBFMA holders):

1. A certification that the applicant has no outstanding loan for the same project applied with other institutions;

2. A certificate of the organizations registration;



3. At least three (3) minutes of a meeting conducted within 6 months before the date of the application;

4. A written narrative or list of the organizations lending systems and procedures;

5. An audited financial statement for the preceding year, and interim financial statements for the current year (if applicable)

6. List of the ARB members or their household members with their corresponding address, work area, farm location and paid-up share capital duly certified by your organizations secretary and attested by the chairperson;

7. A certification for each of the ARB member of the organization, attesting that they are an official member and an actual cultivator of the awarded land;

8. A certified list of the organizations core management team, with their bio-data as attachments;

9. A notarized general assembly resolution authorizing the BOD to borrow a specified amount;

10. A notarized BOD resolution applying for loan and designating authorized signatories;

11. A business plan and budget plan;

12. A milling report for sugarcane farm for the last 3 years (if applicable);

13. Copy of marketing contract between the conduit and market provider (if applicable);

To be prepared by MARPO/PARPO and CENRO/PENRO for submission to Land Bank:

14. Endorsement by DAR of eligible conduits, with certified list of eligible ARBs or ARB household members as attachment

15. Endorsement by DENR of list of certified people’s organizations



Are there available services that can help applicants in the formulation and implementation of their business and farm plans?

Yes. The DA, DAR, and DENR offer assistance and support services to help organizations with the preparation of their business and farm plans.

Specifically, DA will help with the soil analysis and preparation of a nutrient management plan. This can help the applicant determine the amount of resources needed for a project. They will also assist throughout the project by monitoring the farm production and the smooth conduct of the project.

Meanwhile, DAR and DENR can also provide services that can enhance the skills and capabilities of the applicant as farmers, such as training courses, coaching, mentoring assistance, etc.

Technical experts will also provide financial management assistance to help in the distribution of the received funds.

How long will it take before releasing the loan?

Since the processing of the loan application is on a first-come, first-served basis, the length of the process depends on the amount of applications filed. Also, the releasing date will be based on the submitted farm plan and LBP’s schedule of loan releases.

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REFERENCES

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1987 Philippine Constitution

DAR Administrative Order No. 2, Series of 2006, Revised Rules and Procedure Governing Leasehold Implementation in Tenanted Agricultural Lands

DAR Administrative Order No. 7, Series of 2011, Revised Rules and Procedure Governing the Acquisition and Distribution of Private Agricultural Lands Under Republic Act 6657, as amended

DAR Administrative Order No. 9 Series of 2011, Rules for the Survey and/or Field Investigation of Landholdings Where the Department of Agrarian Reform and the Land Bank of the Philippines are Denied Entry Thereto.

DAR Administrative Order No. 3, Series of 2012, Amendments to the Revised Rules and Procedure Governing the Acquisition and Distribution of Private Agricultural Lands under RA 6657 as amended

DAR AO 4 Series of 2014, Amendments to the Revised Rules and Procedures Governing Acquisition and Distribution of Private Agricultural Lands Under RA 6657, as amended.

DAR Administrative Order No. 5 Series of 2014, Rules and Procedure for Preliminary Processing of Land Acquisition and Distribution of Private Agricultural Lands Upon Revocation by the Department of Agrarian Reform of Exemption/Exclusion Conversion Order.

DAR Administrative Order No. 10 Series of 2014, Amendment to Administrative Order No. 7, Series of 2011 With Respect to the Guidelines Governing the Identification, Screening and Selection

references

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of Farmworker Beneficiaries for Haciendas, Commercial Farms or Plantations.

DAR Administrative Order No. 1 Series 2017, Suspension of Administrative Order Nos. 3, 4, 6 and 7, Series of 2016 and Amendment of Sections 19 and 25 of AO No.3 Series of 2012, Amending Sections 60 and 71 of AO No. 7 Series of 2011.

DAR Administrative Order No. 11 Series of 2014, Procedure for and Guidelines in the Handling of All Petitions for Coverage Under the Comprehensive Agrarian Reform Program (CARP).

DAR Administrative Order No. 5, Series of 2015, Amendment to Administrative Order No. 5, Series of 2014.

DAR Administrative Order No. 5 Series of 2017, New Implementing Guidelines Governing the Compulsory Acquisition of All Agricultural Lands with Pending Proceedings or Cases

DAR Memorandum Circular 9, Series of 2013. Guidelines ins the Imple-mentation of Capacity Development (CAPDEV) Component of the Agrarian Production Credit Program (APCP).

DOJ Opinion No. 9, Series of 1997. Re DAR’s request for opinion from DOJ on whether or not the ten year schedule of implementation specified in Section 5 of RA 6657 is mandatory or directory.

DOJ Opinion No. 100, Series of 2012. Re DAR’s request for opinion from DOJ relating to the legal character of UPALs in excess of twelve (12) hectare titling limit as prescribed in Commonwealth Act No. 141 (CA 141).

DOJ Opinion No 59, Series of 2013. Re DAR’s request for opinion from DOJ on whether or not the DAR may continue its land acquisition and distribution proceedings beyond June 30, 2014 where Notices

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of Coverage have already been issued and whether or not Congress may appropriate funds for the full implementation of CARPER beyond the said date.

DOJ Opinion No. 60, Series of 2013. Re DAR’s request for opinion to DOJ whether the Support Services Office created under Section 35 of RA 6657 and the Agrarian Justice Delivery functions of the DAR as expressed in Sections 48 and 50 of RA 6657 may continue its operation beyond June 30, 2014

Joint DAR-DENR Administrative Order No. 3 Series of 2014, Guidelines in the Disposition of Untitled Privately Claimed Agricultural Lands.

Joint DA-DAR-DENR-LANDBANK Memorandum Circular. Series of 2014, Amended Implementing Rules and Regulations (IRR) of the Agrari-an Production Credit Program (APCP).

Presidential Decree No. 27, Decreeing the Emancipation of Tenants from

the Bondage of the Soil, Transferring to Them the Ownership of the land They Till and Providing the Instruments and Mechanism Thereof.

Queries on CARPER Beyond 2014, Legal Notes of Rep. Kaka Bag-ao, 2012.

Republic Act No. 1199, Agricultural Tenancy Act, 1954.

Republic Act No. 3844, An Act To Ordain The Agricultural Land Reform Code And To Institute Land Reforms In The Philippines, Including The Abolition Of Tenancy And The Channeling Of Capital Into Industry, Provide For The Necessary Implementing Agencies, Appropriate Funds Therefor And For Other Purposes, 1963.

Republic Act No.6389, An Act Amending Republic Act Numbered Thirty-Eight Hundred And Forty-Four, As Amended, Otherwise Known As The Agricultural Land Reform Code, And For Other Purposes, 1971.

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Republic Act No. 6657, Comprehensive Agrarian Reform Law of 1988.

Republic Act No. 8532, An Act Strengthening Further the Comprehensive Agrarian Reform Program (CARP), by Providing Augmentation Fund Therefor, Amending for the Purpose Section 63 of Republic Act No. 6657, Otherwise Known As the CARP Law of 1988

Republic Act No. 9700, An Act Strengthening The Comprehensive Agrarian Reform Program (Carp), Extending The Acquisition And Distribution Of All Agricultural Lands, Instituting Necessary Reforms, Amending For The Purpose Certain Provisions Of Republic Act No. 6657, Otherwise Known As The Comprehensive Agrarian Reform Law Of 1988, As Amended, And Appropriating Funds Therefor.

Revised Philippine National Police Operational Procedure, December 2013

Online Resouces:

www.acpc.gov.ph/agrarian-production-credit-program-apcp

http://www.dar.gov.ph/notice-of-coverage, August 31,2017.

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annex:

Administrative order no. 03series of 2017

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The People’s Campaign for Agrarian Reform Network, Inc.

AR Now!

AR Now! is an advocacy and campaign center for the promotion of agrarian reform and sustainable development. AR Now! mission is to engage government to seriously implement agrarian reform by waging nationally coordinated campaigns for pro-agrarian reform and sustainable rural development (ARRD) policies and programs, and to bring back ARRD as a national agenda and development imperative. Conduct of national campaigns on agrarian reform and agrarian reform issues,support to local agrarian reform initiatives, conduct of policy research, analysis and advocacy, conduct of legislative lobbying, documentation of cases and experiences on agrarian reform implementation and issues as well as networking and coalition building are also part of the mission.

AR Now! vision is to achieve peasant empowerment, agrarian and aquatic reform and rural development, sustainable agriculture/ fisheries and food security, gender sensitivity and equality of men and women, and appropriate and adequate support services.

- - -

AR Now! Chair:

KAISAHAN tungo sa Kaunlaran ng Kanayunan at Repormang Pansakahan38-B Mapagsangguni St. Sikatuna Village,

Quezon City 1101 PhilippinesTel: (+632) 433 0760, Fax: (+632) 921 5436

Email: [email protected]: www.kaisahan.com.ph

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