COMPREHENSIVE AGRARIAN REFORM
LAW OF 1988 REPUBLIC ACT NO. 6657
CHAPTER
I
PRELIMINARY
CHAPTER
SECTION 1. Title.
- This Act shall be known as the Comprehensive Agrarian Reform Law
of
1988.
SECTION 2. Declaration
of Principles and Policies. - It is the policy of the State to
pursue
a Comprehensive Agrarian Reform Program (CARP). The welfare of the
landless
farmers and farm workers will receive the highest consideration to
promote
social justice and to move the nation towards sound rural development
and
industrialization, and the establishment of owner cultivatorship of
economic-sized
farms as the basis of Philippine agriculture.
To this end, a more
equitable distribution and ownership of land, with due regard to the
rights
of landowners to just compensation and to the ecological needs of the
nation,
shall be undertaken to provide farmers and farm workers with the
opportunity
to enhance their dignity and improve the quality of their lives through
greater productivity of agricultural lands.
The agrarian reform
program is founded on the right of farmers and regular farm workers,
who
are landless, to own directly or collectively the lands they till or,
in
the case of other farm workers, to receive a share of the fruits
thereof.
To this end, the State shall encourage the just distribution of all
agricultural
lands, subject to the priorities and retention limits set forth in this
Act, having taken into account ecological, developmental, and equity
considerations,
and subject to the payment of just compensation. The State shall
respect
the right of small landowners and shall provide incentives for
voluntary
land-sharing.
The State shall recognize
the right of farmers, farm workers and landowners, as well as
cooperatives
and other independent farmers' organization, to participate in the
planning,
organization, and management of the program, and shall provide support
to agriculture through appropriate technology and research, and
adequate
financial, production, marketing and other support services.chan
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The State shall apply
the principles of agrarian reform or stewardship, whenever applicable,
in accordance with law, in the disposition or utilization of other
natural
resources, including lands of the public domain, under lease or
concession,
suitable to agriculture, subject to prior rights, homestead rights of
small
settlers and the rights of indigenous communities to their ancestral
lands.
The State may resettle
landless farmers and farm workers in its own agricultural estates,
which
shall be distributed to them in the manner provided by law.
By means of appropriate
incentives, the State shall encourage the formation and maintenance of
economic-sized family farms to be constituted by individual
beneficiaries
and small landowners.
The State shall protect
the rights of subsistence fishermen, especially of local communities,
to
the preferential use of communal marine and fishing resources, both
inland
and offshore. It shall provide support to such fishermen through
appropriate
technology and research, adequate financial, production and marketing
assistance
and other services, The State shall also protect, develop and conserve
such resources. The protection shall extend to offshore fishing grounds
of subsistence fishermen against foreign intrusion. Fishworkers shall
receive
a just share from their labor in the utilization of marine and fishing
resources.
The State shall be
guided by the principles that land has a social function and land
ownership
has a social responsibility. Owners of agricultural land have the
obligation
to cultivate directly or through labor administration the lands they
own
and thereby make the land productive.
The State shall provide
incentives to landowners to invest the proceeds of the agrarian reform
program to promote industrialization, employment and privatization of
public
sector enterprises. Financial instruments used as payment for lands
shall
contain features that shall enhance negotiability and acceptability in
the marketplace.
The State may lease
undeveloped lands of the public domain to qualified entities for the
development
of capital-intensive farms, traditional and pioneering crops especially
those for exports subject to the prior rights of the beneficiaries
under
this Act.
SECTION 3. Definitions.
- For the purpose of this Act, unless the context indicates otherwise:
(a) Agrarian
Reform means the redistribution of
lands,
regardless of crops or fruits produced, to farmers and regular farm
workers
who are landless, irrespective of tenurial arrangement, to include the
totality of factors and support services designed to lift the economic
status of the beneficiaries and all other arrangements alternative to
the
physical redistribution of lands, such as production or profit-sharing,
labor administration, and the distribution of shares of stock which
will
allow beneficiaries to receive a just share of the fruits of the lands
they work.
(b) Agriculture,
Agricultural Enterprise or Agricultural Activity
means the cultivation of the soil, planting of crops, growing of fruit
trees, including the harvesting of such farm products, and other farm
activities
and practices performed by a farmer in conjunction with such farming
operations
done by persons whether natural of juridical. (As
amended by R. A. 7881)chan
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(c) Agricultural
Land refers to land devoted to
agricultural
activity as defined in this Act and not classified as mineral, forest,
residential, commercial or industrial land.
(d) Agrarian
Dispute refers to any controversy
relating
to tenurial arrangements, whether leasehold, tenancy, stewardship or
otherwise,
over lands devoted to agriculture, including disputes concerning farm
workers'
associations or representation of persons in negotiating, fixing,
maintaining,
changing or seeking to arrange terms or conditions of such tenurial
arrangements.
It includes any controversy
relating to compensation of lands acquired under this Act and other
terms
and conditions of transfer of ownership from landowners to farm
workers,
tenants and other agrarian reform beneficiaries, whether the disputants
stand in the proximate relation of farm operator and beneficiary,
landowner
and tenant, or lessor and lessee.
(e)
Idle or Abandoned Land refers to any
agricultural
land not cultivated, tilled or developed to produce any crop nor
devoted
to any specific economic purpose continuously for a period of three (3)
years immediately prior to the receipt of notice of acquisition by the
government as provided under this Act, but does not include land that
has
become permanently or regularly devoted to non-agricultural purposes.
It
does not include land which has become unproductive by reason of force
majeure or any other fortuitous event: Provided, that prior
to such event, such land was previously used for agricultural or other
economic purposes.
(f) Farmer
refers
to a natural person whose primary livelihood is cultivation of land or
the production of agricultural crops either by himself, or primarily
with
the assistance of his immediate farm household, whether the land is
owned
by him, or by another person under a leasehold or share tenancy
agreement
or arrangement with the owner thereof.
(g) Farmworker
is a natural person who renders service for value as an employee or
laborer
in an agricultural enterprise or farm regardless of whether his
compensation
is paid on a daily, weekly, monthly or "pakyaw" basis. The term
includes an individual whose work has ceased as a consequence of, or in
connection with, a pending agrarian dispute who has not obtained a
substantially
equivalent and regular farm employment.
(h)
Regular Farmworker is a natural person
who is employed on a permanent basis by an agricultural enterprise or
farm.
(i) Seasonal
Farmworker is a natural person who is
employed on a recurrent, periodic or intermittent basis by an
agricultural
enterprise or farm, whether as a permanent or a non-permanent laborer,
such as "dumaan", "sacada", and the like.
(j)
Other Farmworker is a farmworker who
does
not fall under paragraphs (g), (h) and (i).
(k) Cooperatives
shall refer to organizations composed primarily of small agricultural
producers,
farmers, farm workers, or other agrarian reform beneficiaries who
voluntarily
organize themselves for the purpose of pooling land, human,
technological,
financial or other economic resources, and operated on the principle of
one member, one vote. A juridical person may be a member of a
cooperative,
with the same rights and duties as a natural person.
CHAPTER II
COVERAGE
SEC. 4. Scope.
- The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless
of tenurial arrangement and commodity produced, all public and private
agricultural lands as provided in Proclamation No. 131 and Executive
Order
No. 229, including other lands of the public domain suitable for
agriculture.
More specifically,
the following lands are covered by the Comprehensive Agrarian Reform
Program:
(a) All alienable
and disposable lands of the public domain devoted to or suitable for
agriculture.
No reclassification of forest or mineral lands to agricultural lands
shall
be undertaken after the approval of this Act until Congress, taking
into
account ecological, developmental and equity considerations, shall have
determined by law, the specific limits of the public domain;
b) All lands of
the public domain in excess to the specific limits as determined by
Congress
in the preceding paragraph;
c) All other lands
owned by the Government devoted to or suitable for agriculture; andchan
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d) All private
lands
devoted to or suitable for agriculture regardless of the agricultural
products
raised or that can be raised thereon.
SEC. 5. Schedule
of Implementation. - The distribution of all lands covered by this
Act shall be implemented immediately and completed within ten (10)
years
from the effectivity thereof.
SEC. 6. Retention
Limits. - Except as otherwise provided in this Act, no person may
own
or retain, directly, any public or private agricultural land, the size
of which shall vary according to factors governing a viable
family-sized
farm, such as commodity produced, terrain, infrastructure, and soil
fertility
as determined by the Presidential Agrarian Reform Council (PARC)
created
hereunder, but in no case shall the retention by the landowner exceed
five
(5) hectares. Three (3) hectares may be awarded to each child of the
landowner,
subject to the following qualifications: (1) that he is at least
fifteen
(15) years of age; and (2) that he is actually tilling the land or
directly
managing the farm: Provided, That landowners whose lands have
been
covered by Presidential Decree No. 27 shall be allowed to keep the area
originally retained by them thereunder; Provided, further, That
original homestead grantees or direct compulsory heirs who still own
the
original homestead at the time of the approval of this Act shall retain
the same areas as long as they continue to cultivate said homestead.
The right to choose
the area to be retained, which shall be compact or contiguous, shall
pertain,
to the landowner: Provided, however, That in case the area
selected
for retention by the landowner is tenanted, the tenant shall have the
option
to choose whether to remain therein or be a beneficiary in the same or
another agricultural land with similar or comparable features. In case
the tenant chooses to remain in the retained area, he shall be
considered
a leaseholder and shall lose his right to be a beneficiary under this
Act.
In case the tenant chooses to be a beneficiary in another agricultural
land, he loses his right as a leaseholder to the land retained by the
landowner.
The tenant must exercise this option within a period of one (1) year
from
the time the landowner manifests his choice of the area for retention.
In all cases, the
security of tenure of the farmers or farm workers on the land prior to
the approval of this Act shall be respected.
Upon the effectivity
of this Act, any sale, disposition, lease, management contract or
transfer
of possession of private lands executed by the original landowner in
violation
of this Act shall be null and void: Provided, however, That
those
executed prior to this Act shall be valid only when registered with the
Register of Deeds within a period of three (3) months after the
effectivity
of this ActThereafter, all Registers of Deeds shall inform the DAR
within
thirty (30) days of any transaction involving agricultural lands in
excess
of five (5) hectares.
SEC. 7. Priorities.
-
The DAR, in coordination with the PARC shall plan and program the
acquisition
and distribution of all agricultural lands through a period of ten (10)
years from the effectivity of this Act. Lands shall be acquired
and
distributed as follows:
Phase One: Rice
and corn lands under Presidential Decree No. 27; all idle or abandoned
lands; all private lands voluntarily offered by the owners for agrarian
reform; all lands foreclosed by government financial institution; all
lands
acquired by the Presidential Commission on Good Government (PCGG); and
all other lands owned by the government devoted to or suitable for
agriculture,
which shall be acquired and distributed immediately upon the
effectivity
of this Act, with the implementation to be completed within a period of
not more than four (4) years;
Phase two: All
alienable
and disposable public agricultural lands; all arable public
agricultural
lands under agro-forest, pasture and agricultural leases already
cultivated
and planted to crops in accordance with Section 6, Article XIII of the
Constitution; all public agricultural lands which are to be opened for
new development and resettlement; and all private agricultural lands in
excess of fifty (50) hectares, insofar as the excess hectarage is
concerned,
to implement principally the right of farmers and regular farm workers,
who are landless, to own directly or collectively the lands they till,
which shall be distributed immediately upon the effectivity of this
Act,
with the implementation to be completed within a period of not more
than
four (4) years.
Phase Three: All
other private agricultural lands commencing with large landholdings and
proceeding to medium and small landholdings under the following
schedule:
a) Landholdings
above twenty-four (24) hectares up to fifty (50) hectares, to begin on
the fourth (4th) year from the effectivity of this Act and to be
completed
within three (3) years; and
b) Landholdings
from the retention limit up to twenty-four (24) hectares, to begin on
the
sixth (6th) year from the effectivity of this Act and to be completed
within
four (4) years; to implement principally the right of farmers and
regular
farmworkers who are landless, to own directly or collectively the lands
they till.
The schedule of acquisition
and redistribution of all agricultural lands covered by this program
shall
be made in accordance with the above order of priority, which shall be
provided in the implementing rules to be prepared by the Presidential
Agrarian
Reform Council (PARC), taking into consideration the following: the
need
to distribute lands to the tiller at the earliest practicable time; the
need to enhance agricultural productivity; and the availability of
funds
and resources to implement and support the program.
In any case, the
PARC, upon recommendation by the Provincial Agrarian Reform
Coordinating
Committee (PARCCOM), may declare certain provinces or regions as
priority
land reform areas, in which case the acquisition and distribution of
private
agricultural lands therein may be implemented ahead of the above
schedules.
In effecting the transfer within these
guidelines,
priority must be given to lands that are tenanted.
The PARC shall establish
guidelines to implement the above priorities and distribution scheme,
including
the determination of who are qualified beneficiaries: Provided,
That an owner-tiller may be a beneficiary of the land he does not own
but
is actually cultivating to the extent of the difference between the
area
of the land he owns and the award ceiling of three (3) hectares.
SEC. 8. Multinational
Corporations. - All lands of the public domain leased, held or
possessed
by multinational corporations or associations, and other lands owned by
the government or government-owned or controlled corporations,
associations,
institutions or entities, devoted to existing and operational
agribusiness
or agro-industrial enterprises, operated by multinational corporations
and associations, shall be programmed for acquisition and distribution
immediately upon the effectivity of this Act, with the implementation
to
be completed within three (3) years.
Lands covered by
the paragraph immediately preceding, under lease, management, grower or
service contracts, and the like, shall be disposed of as follows:
(a) Lease,
management, grower or service contracts covering such lands covering an
aggregate area in excess of 1,000 hectares, leased or held by foreign
individuals
in excess of 500 hectares are deemed amended to confirm with the limits
set forth in Section 3 of Article XIII of the Constitution.
(b)
Contracts
covering areas not in excess of 1,000 hectares in the case of such
individuals
shall be allowed to continue under their original terms and conditions
but not beyond August 29, 1992, or their valid termination, whichever
comes
sooner, after which, such agreements shall continue only when confirmed
by the appropriate government agency. Such contracts shall likewise
continue
even after the land has been transferred to beneficiaries or awardees
thereof,
which transfer shall be immediately commenced and implemented within
the
period of three (3) years mentioned in paragraph 1 hereof.
(c) In no case
will
such leases and other agreements now being implemented extend beyond
August
29, 1992, when all lands subject hereof shall have been distributed
completely
to qualified beneficiaries or awardees. Such
agreements can continue thereafter only under a new contract between
the
government or qualified beneficiaries or awardees, on the one hand, and
said enterprises, on the other.chan
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Lands leased, held or
possessed by multinational corporations, owned by private individuals
and
private non-governmental corporations, associations, institutions, and
entities, citizens of the Philippines, shall be subject to immediate
compulsory
acquisition and distribution upon the expiration of the applicable
lease,
management grower of service contract in effect as of August 29, 1987,
or otherwise, upon its valid termination, whichever comes sooner, but
not
later than after ten (10) years following the effectivity of this ActHowever, during the said period of effectivity, the government shall
take
steps to acquire these lands for immediate distribution thereafter.
In general, lands
shall be distributed directly to the individual worker-beneficiaries.
In
case it is not economically feasible and sound to divide the land, then
they shall form a workers' cooperative or association which will deal
with
the corporation or business association or any other proper party, for
the purpose of entering into a lease or growers agreement and for all
other
legitimate purposes. Until a new agreement is entered into by and
between the workers' cooperative or association and the corporation or
business association or any other proper party, any agreement existing
at the time this Act takes effect between the former and the previous
landowner
shall be respected by both the workers' cooperative or association and
the corporation, business association or such other proper party.
In no case shall the implementation or application of this Act justify
or result in the reduction of status or diminution of any benefits
received
or enjoyed by the worker-beneficiaries, or in which they may have a
vested
right, at the time this Act becomes effective.
The provision of
Section 32 of this Act, with regard to production and income-sharing
shall
apply to farms operated by multinational corporations.
During the transition
period, the new owners shall be assisted in their efforts to learn
modern
technology in production. Enterprises which show a willingness and
commitment
and good faith efforts to impart voluntarily such advanced technology
will
be given preferential treatment where feasible.
In no case shall
a foreign corporation, association, entity or individual enjoy any
rightr
or privileges better than those enjoyed by a domestic corporation,
association,
entity or individual.
SEC. 9. Ancestral
Lands. - For purposes of this Act, ancestral lands of each
indigenous
cultural community shall include, but not be limited to, lands in the
actual,
continuous and open possession and occupation of the community and its
members: Provided, That the Torrens System shall be respected.
The right of these
communities to their ancestral lands shall be protected to ensure their
economic, social and cultural well-being. In line with the other
principles
of self-determination and autonomy, the systems of land ownership, land
use, and the modes of settling land disputes of all these communities
must
be recognized and respected.
Any provision of
law to the contrary notwithstanding, the PARC may suspend the
implementation
of this Act with respect to ancestral lands for the purpose of
identifying
and delineating such lands: Provided, That in the autonomous
regions,
the respective legislatures may enact their own laws on ancestral
domain
subject to the provisions of the Constitution and the principles
enunciated
in this Act and other national laws.
SEC. 10. Exemptions
and Exclusions.-
(a) Lands actually,
directly and exclusively used for parks, wildlife, forest reserves,
reforestation,
fish sanctuaries and breeding grounds, watersheds and mangroves shall
be
exempt from the coverage of this Act.
(b) Private lands
actually, directly and exclusively used for prawn farms and fishponds
shall
be exempt from the coverage of this Act: Provided, That said
prawn
farms and fishponds have not been distributed and Certificate of Land
Ownership
Award (CLOA) issued under the Agrarian Reform Program.
In cases where the
fishponds or prawn farms have been subjected to the Comprehensive
Agrarian
Reform Law, by voluntary offer to sell, or commercial farms deferment
or
notices of compulsory acquisition, a simple and absolute majority of
the
actual regular workers or tenants must consent to the exemption within
one (1) year from the effectivity of this Act. When the workers
or
tenants do not agree to this exemption, the fishponds or prawn farms
shall
be distributed collectively to the worker-beneficiaries or tenants who
shall form cooperative or association to manage the same.
In cases where the
fishponds or prawn farms have not been subjected to the Comprehensive
Agrarian
Reform Law, the consent of the farmworkers shall no longer be
necessary;
however, the provision of Section 32-A hereof on incentives shall apply.
(c) Lands actually,
directly and exclusively used and found to be necessary for national
defense,
school sites and campuses, including experimental farm stations
operated
by public or private schools for educational purposes, seeds and
seedlings
research and pilot production center, church sites and convents
appurtenant
thereto, mosque sites and Islamic centers appurtenant thereto, communal
burial grounds and cemeteries, penal colonies and penal farms actually
worked by the inmates, government and private research and quarantine
centers
and all lands with eighteen percent (18%) slope and over, except those
already developed, shall be exempt from the coverage of this Act.(As
amended by R. A. 7881)
SEC. 11. Commercial
Farming. - Commercial farms which
are private agricultural lands devoted to salt beds, fruit farms,
orchards,
vegetable and cut-flower farms, and cacao, coffee and rubber
plantations,
shall be subject to immediate compulsory acquisition and distribution
after
ten (10) years from the effectivity of this Act. In the case of
new
farms, the ten-year period shall begin from the first year of
commercial
production and operation, as determined by the DAR. During the ten-year
period, the Government shall initiate steps necessary to acquire these
lands, upon payment of just compensation for the land and the
improvements
thereon, preferably in favor of organized cooperatives or associations,
which shall thereafter manage the said lands for the
workers-beneficiaries.(As
amended by R. A. 7881)
CHAPTER III
IMPROVEMENT OF
TENURIAL
AND LABOR RELATIONS
SEC. 12. Determination
of Lease Rentals. - In order to protect and improve the tenurial
and
economic status of the farmers in tenanted lands under the retention
limit
and lands not yet acquired under this Act, the DAR is mandated to
determine
and fix immediately the lease rentals thereof in accordance with
Section
34 of R. A. No. 3844 as amended : Provided, That the DAR shall
immediately
and periodically review and adjust the rental structure for different
crops,
including rice and corn, of different regions in order to improve
progressively
the conditions of the farmer, tenant or lessee.
SEC. 12-A. Incentives.
- Individuals and entities owning or operating fishpond and prawn farms
are hereby mandated to execute within six (6) months from the
effectivity
of this Act, an incentive plan with their regular fishpond or prawn
farm
workers or fishpond or prawn farm workers' organization, if any,
whereby
seven point five percent (7.5%) of their net profit before tax from the
operation of the fishpond or prawn farms are distributed within sixty
(60)
days at the end of the fiscal year as compensation to regular and other
pond workers in such ponds over and above the compensation they
currently
receive.
In order to safeguard
the right of the regular fishpond or prawn farm workers under the
incentives
plan, the book of the fishpond or prawn farm owners shall be subject to
periodic audit or inspection by certified public accountants chosen by
the workers.
The foregoing
provision
shall not apply to agricultural lands subsequently converted to
fishponds
or prawn farms provided the size of the land converted does not exceed
the retention limit of the landowner. (As
added by R. A. 7881)
SEC. 13. Production-Sharing
Plan. - Any enterprise adopting the scheme provided for in Section
32 or operating under a production venture, lease, management contract
or other similar arrangement and any farm covered by Sections 8 and 11
hereof is hereby mandated to execute within ninety (90) days from the
effectivity
of this Act, a production-sharing plan under guidelines prescribed by
the
appropriate government agency.
Nothing herein shall
be construed to sanction the diminution of any benefits such as
salaries,
bonuses, leaves and working conditions granted to the
employee-beneficiaries
under existing laws, agreements, and voluntary practice by the
enterprise,
nor shall the enterprise and its employee-beneficiaries be prevented
from
entering into any agreement with terms more favorable to the latter.chan
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CHAPTER IV
REGISTRATION
SEC. 14. Registration
of Landowners. - Within one hundred eighty (180) days from the
effectivity
of this Act, natural or juridical, including government entities, that
own or claim to own agricultural lands, whether in their names or in
the
name of others, except those who have already registered pursuant to
Executive
Order No. 229, who shall be entitled to such incentives as may be
provided
for by PARC, shall file a sworn statement in the proper assessors
office
in the form to be prescribed by the DAR, stating the following
information:
(a) The description and area of the property;
(b) The average gross income from the property for at least three (3)
years;
(c) The names of the tenants and farm workers therein;
(d) The crops planted in the property and the area covered by each crop
as of June 1,1987;
(e) The terms of mortgages, leases, and management contracts subsisting
as of June 1, 1987; and
(f) The latest declared market value of the land as determined by the
city
or provincial assessor.
SEC. 15. Registration
of Beneficiaries. - The DAR in coordination with the Barangay
Agrarian
Reform Committee (BARC) as organized in this Act, shall register all
agricultural
lessees, tenants and farmworkers who are qualified to be beneficiaries
with the assistance of the BARC and the DAR shall provide the following
data:
(a) Names and members of their immediate farm household;
(b) Location and area of the land they work;
(c) Crops planted; and
(d) Their share in the harvest or amount of rental paid or wages
received.
A copy of the registry
or list of all potential CARP beneficiaries in the barangay shall be
posted
in the barangay hall, school or other public buildings in the barangay
where it shall be open to inspection by the public at all reasonable
hours.
CHAPTER V
LAND ACQUISITION
SEC. 16. Procedure
for Acquisition of Private Lands.- For purposes of acquisition of
private
lands, the following procedures shall be followed:
(a) After having
identified the land, the landowners and the beneficiaries, the DAR
shall
send its notice to acquire the land to the owners thereof, by personal
delivery or registered mail, and post the same in a conspicuous place
in
the municipal building and barangay hall of the place where the
property
is located. Said notice shall contain the offer of the DAR to pay a
corresponding
value in accordance with the valuation set forth in Sections 17, 18,
and
other pertinent provisions hereof.
(b) Within thirty
(30) days from the date of receipt of written notice by personal
delivery
or registered mail, the landowner, his administrator or representative
shall inform the DAR of his acceptance or rejection of the offer.
(c) If the
landowner
accepts the offer of the DAR, the LBP shall pay the landowner the
purchase
price of the land within thirty (30) days after he executes and
delivers
a deed of transfer in favor of the Government and surrenders the
Certificate
of Title and other muniments of title.
(d) In case of
rejection
or failure to reply, the DAR shall conduct summary administrative
proceedings
to determine the compensation of the land by requiring the landowner,
the
LBP and other interested parties to summit evidence as to the just
compensation
for the land, within fifteen (15) days from the receipt of the notice.
After the expiration of the above period, the matter is deemed
submitted
for decision. The DAR shall decide the case within thirty (30) days
after
it is submitted for decision.
(e) Upon receipt
by the landowner of the corresponding payment or in case of rejection
or
no response from the landowner, upon the deposit with an accessible
bank
designated by the DAR of the compensation in cash or LBP bonds in
accordance
with this Act, the DAR shall take immediate possession of the land and
shall request the proper Register of Deeds to issue a Transfer
Certificate
of Title (TCT) in the name of the Republic of the Philippines. The DAR
shall thereafter proceed with the redistribution of the land to the
qualified
beneficiaries.
(f) Any party who
disagrees with the decision may bring the matter to the court of proper
jurisdiction for final determination of just compensation.
CHAPTER VI
COMPENSATION
SEC. 17. Determination
of Just Compensation. - In determining just compensation, the cost
of acquisition of the land, the current value of like properties, its
nature,
actual use and income, the sworn valuation by the owner, the tax
declarations,
and the assessment made by government assessors, shall be considered.
The
social and economic benefits contributed by the farmers and the
farmworkers
and by government to the property as well as the non-payment of taxes
or
loans secured from any government financing institution on the said
land
shall be considered as additional factors to determine its valuation.
SEC. 18. Valuation
and Mode of Compensation. - The LBP shall compensate the landowner
in such amount as may be agreed upon by the landowner and the DAR and
LBP
or as may be finally determined by the court as just compensation for
the
land.
The compensation
shall be paid in one of the following modes at the option of the
landowner:
(1) Cash payment, under the following terms and conditions:
(a) For lands
above fifty (50) hectares, insofar as the excess hectarage
isconcerned
- Twenty-five percent (25%) cash, the balance to be paid in government
financial instruments negotiable at any time.
(b) For lands
above twenty-four hectares and up to fifty (50) hectares - Thirty
percent
(30%) cash, the balance to be paid in government financial instruments
negotiable at any time.
(c) For lands
twenty-four (24) hectares and below - Thirty-five percent (35%)
cash,
the balance to be paid in government financial instruments negotiable
at
any time.
(2)
Shares of stock in government-owned or controlled corporations, LBP
preferred
shares, physical assets or other qualified investments in accordance
with
guidelines set by the PARC;
(3) Tax credits which can be used against any tax liability;
(4) LBP bonds, which shall have the following features:
(a) Market
interest
rates aligned with 91-day treasury bill rates. Ten percent (10%)
of
the face value of the bonds shall mature every year from the date of
issuance
until the tenth (10th) year: Provided, That should the
landowner
choose to forego the cash portion, whether in full or in part, he shall
be paid correspondingly in LBP bonds;
(b) Transferability
and negotiability. Such LBP bonds may be used by the landowner, his
successors-in-interest or his assigns, up to the amount of their face
value
for any of the following:
(i) Acquisition
of land or other real properties of the government, including assets
under
the Assets Privatization Program and other assets foreclosed by
government
financial institution in the same province or region where the lands
for
which the bonds were paid are situated;
(ii) Acquisition
of shares of stock of government-owned or controlled corporations or
shares
or stock owned by the government in private corporations;chan
robles virtual law library
(iii)
Substitution
for surety or bail bonds for the provisional release of accused
persons,
or for performance bonds;
(iv) Security
for
loans with any government financial institution, provided the proceeds
of the loans shall be invested in an economic enterprise, preferably in
a small and medium-scale industry, in the same province or region as
the
land for which the bonds are paid;
(v) Payment for
various taxes and fees to the government: Provided, That the use
of these bonds for these purposes will be limited to a certain
percentage
of the outstanding balance of the financial instrument: Provided,
further,
That
the PARC shall determine the percentages mentioned above;
(vi) Payment for
tuition fees of the immediate family of the original bondholder in
government
universities, colleges, trade schools and other institutions;
(vii) Payment
for
fees of the immediate family of the original bondholder in government
hospitals;
and
(viii) Such
other
uses as the PARC may from time to time allow.
In case of
extraordinary
inflation, the PARC shall take appropriate measures to protect the
economy.
SEC. 19. Incentives
for Voluntary Offers for Sale. - Landowners other than banks and
other
financial institutions who voluntarily offer their lands for sale shall
be entitled to an additional five percent (5%) cash payment.
SEC. 20. Voluntary
Land Transfer. - Landowners of agricultural lands subject to
acquisition
under this Act may enter into a voluntary arrangement for direct
transfer
of their lands to qualified beneficiaries subject to the following
guidelines:
(a) All notices
for voluntary land transfer must be submitted to the DAR within the
first
year of the implementation of the CARP. Negotiations between the
landowners
and qualified beneficiaries covering any voluntary land transfer which
remain unresolved after one (1) year shall not be recognized and such
land
shall instead be acquired by the government and transferred pursuant to
this Act.
(b) The terms and
conditions of such transfer shall not be less favorable to the
transferee
than those of the government 's standing offer to purchase from the
landowner
and to resell to the beneficiaries, if such offers have been made and
are
fully known to both parties.
(c) The voluntary
agreement shall include sanctions for non-compliance by either party
and
shall be duly recorded and its implementation monitored by the DAR.
SEC. 21. Payment
of Compensation by Beneficiaries Under Voluntary Land Transfer.- Direct
payment in cash or in kind may be made by the farmer-beneficiary to the
landowner under terms to be mutually agreed upon by both parties, which
shall be binding upon them, upon registration with and approval by the
DAR. Said approval shall be considered given, unless notice of
disapproval
is received by the farmer-beneficiary within 30 days from the date of
registration.In
the event they cannot agree on the price of the land, the procedure for
compulsory acquisition as provided in Section 16 shall apply. The LBP
shall
extend financing to the beneficiaries for purposes of acquiring the
land.
CHAPTER VII
LAND REDISTRIBUTION
SEC. 22.
Qualified Beneficiaries. - The lands covered by the CARP shall be
distributed
as much as possible to landless residents of the same barangay, or in
the
absence thereof, landless residents of the same municipality in the
following
order of priority:
(a) agricultural lessees and share tenants;
(b) regular farm workers;
(c) seasonal farm workers;
(d) other farm workers;
(e) actual tillers or occupants of public lands;
(f) collective or cooperatives of the above beneficiaries; and
(g) others directly working on the land.
Provided, however,
That
the children of landowners who are qualified under Section 6 of this
Act
shall be given preference in the distribution of the land of their
parents;
and: Provided, further, that actual tenant -tillers in the
landholding
shall not be ejected or removed therefrom.
Beneficiaries under
Presidential Decree No. 27 who have culpably sold, disposed of, or
abandoned
their land are disqualified to become beneficiaries under their program.
A basic qualification
of a beneficiary shall be his willingness, aptitude and ability to
cultivate
and make land as productive as possible. The DAR shall adopt a system
of
monitoring the record or performance of each beneficiary, so that any
beneficiary
guilty of negligence or misuse of the land or any support extended to
him
shall forfeit his right to continue as such beneficiary. The DAR shall
submit periodic reports on the performance of the beneficiaries to the
PARC.
If, due to landowner's
retention rights or to the number of tenants, lessees, or workers on
the
land, there is not enough land to accommodate any or some of them, they
may be granted ownership of other lands available for distribution
under
this Act, at the option of the beneficiaries.
Farmers already in
place and those not accommodated in the distribution of privately-owned
lands will be given preferential rights in the distribution of lands
from
the public domain.
SEC. 23. Distribution
Limit. - No qualified beneficiary may own more than three (3)
hectares
of agricultural land.
SEC. 24. Award
to Beneficiaries. - The rights and responsibilities of the
beneficiary
shall commence from the time the DAR makes an award of the land to him,
which award shall be completed within one hundred eighty (180) days
from
the time the DAR takes actual possession of the land. Ownership of the
beneficiary shall be evidenced by a Certificate of Land Ownership
Award,
which shall contain the restrictions and conditions provided for in
this
Act, and shall be recorded in the Register of Deeds concerned and
annotated
on the Certificate of Title.
SEC. 25. Award
Ceilings for Beneficiaries. - Beneficiaries shall be awarded an
area
not exceeding three (3) hectares, which may cover a contiguous tract of
land or several parcels of land cumulated up to the prescribed award
limits.
For purposes of this
Act, a landless beneficiary is one who owns less than three (3)
hectares
of agricultural land. The
beneficiaries
may opt for collective ownership, such as co-workers or farmers'
cooperative
or some other form of collective organization: Provided, That
the
total area that may be awarded shall not exceed the total number of
co-workers
or members of the cooperative or collective organization multiplied by
the award limit above prescribed, except in meritorious cases as
determined
by the PARC. Title to the property shall be issued in the name of the
co-owners
or the cooperative or collective organization as the case may be.
SEC. 26. Payment
by Beneficiaries. - Lands awarded pursuant to this Act shall be
paid
for by the beneficiaries to the LBP in thirty (30) annual amortizations
at six percent (6%) interest per annum. The payments for the firs three
(3) years after the award may be at reduced amounts as established by
the
PARC : Provided, That the first five (5) annual payments may
not
be more than five percent (5%) of the value of the annual gross
production
is paid as established by the DAR. Should the scheduled annual payments
after the fifth year exceed ten percent (10) of the annual gross
production
and the failure to produce accordingly is not due to the beneficiary's
fault, the LBP may reduce the interest rate or reduce the principal
obligation
to make the payment affordable.
The LBP shall have
a lien by way of mortgage on the land awarded to beneficiary and this
mortgage
may be foreclosed by the LBP for non-payment of an aggregate of three
(3)
annual amortizations. The LBP shall advise the DAR of such proceedings
and the latter shall subsequently award the forfeited landholding to
other
qualified beneficiaries. A beneficiary whose land as provided herein
has
been foreclosed shall thereafter be permanently disqualified from
becoming
a beneficiary under this Act.
SEC. 27. Transferability
of Awarded Lands. - Lands acquired by beneficiaries under this Act
may not be sold, transferred or conveyed except through hereditary
succession,
or to the government, or to the LBP, or to other qualified
beneficiaries
for a period of ten (10) years: Provided, however, That the
children
or the spouse of the transferor shall have a right to repurchase the
land
from the government or LBP within a period of two (2) years. Due notice
of the availability of the land shall be given by the LBP to the
Barangay
Agrarian Reform Committee (BARC) of the barangay where the land is
situated.
The Provincial Agrarian Coordinating Committee (PARCCOM), as herein
provided,
shall, in turn, be given due notice thereof by the BARC.
If the land has
not yet been fully paid by the beneficiary, the right to the land may
be
transferred or conveyed, with prior approval of the DAR, to any heir of
the beneficiary or to any other beneficiary who, as a condition for
such
transfer or conveyance, shall cultivate the land himself. Failing
compliance
herewith, the land shall be transferred to the LBP which shall give due
notice of the availability of the land in the manner specified in the
immediately
preceding paragraph.
In the event of
such transfer to the LBP, the latter shall compensate the beneficiary
in
one lump sum for the amounts the latter has already paid, together with
the value of improvements he has made on the land.
SEC. 28Standing
Crops at the Time of Acquisition. - The landowner shall retain his
share of any standing crops unharvested at the time the DAR shall take
possession of the land under Section 16 of this Act, and shall be given
a reasonable time to harvest the same.
CHAPTER VIII
CORPORATE FARMS
SEC. 29. Farms
Owned or Operated by Corporations or Other Business Associations. - In
the case of farms owned or operated by corporations or other business
associations,
the following rules shall be observed by the PARC.
In general, lands
shall be distributed directly to the individual worker-beneficiaries.
In case it is not
economically feasible and sound to divide the land, then it shall be
owned
collectively by the worker-beneficiaries who shall form a workers'
cooperative
or association which will deal with the corporation or business
association.
Until a new agreement is entered into by and between the workers'
cooperative
or association and the corporation or business association, any
agreement
existing at the time this Act takes effect between the former and the
previous
landowner shall be respected by both the workers' cooperative or
association
and the corporation or business association.
SEC. 30. Homelots
and Farmlots for Members of Cooperatives. - The individual members
of the cooperatives or corporations mentioned in the preceding section
shall be provided with homelots and small farmlots for their family
use,
to be taken from the land owned by the cooperative or corporation.
SEC. 31. Corporate
Landowners. - Corporate landowners may voluntarily transfer
ownership
over their agricultural landholdings to the Republic of the Philippines
pursuant to Section 20 hereof or to qualified beneficiaries, under such
terms and conditions consistent with this Act, as they may agree upon,
subject to confirmation by the DAR.
Upon certification
by the DAR, corporations owning agricultural lands may give their
qualified
beneficiaries the right to purchase such proportion of the capital
stock
of the corporation that the agricultural land, actually devoted to
agricultural
activities, bears in relation to the company's total assets, under such
terms and conditions as may be agreed upon by them. In no case shall
the
compensation received by the workers at the time the shares of stocks
are
distributed be reduced. The same principle shall be applied to
associations,
with respect to their equity or participation.
Corporations or associations
which voluntarily divest a proportion of their capital stock, equity or
participation in favor of their workers or other qualified
beneficiaries
under this section shall be deemed to have complied with the provisions
of this Act: Provided, That the following condition are
complied
with:
(a) In order to
safeguard the right of beneficiaries who own shares of stocks to
dividends
and other financial benefits, the books of the corporation or
association
shall be subject to periodic audit by certified public accountants
chosen
by the beneficiaries;
(b) Irrespective
of the value of their equity in the corporation or association, the
beneficiaries
shall be assured of at least one (1) representative in the board of
directors,
or in a management or executive committee, if one exists, of the
corporation
or association;
(c) Any shares
acquired
by such workers and beneficiaries shall have the same rights and
features
as all other shares; and
(d) Any transfer
of shares of stocks by the original beneficiaries shall be void ab
initio
unless
said transaction is in favor of a qualified and registered beneficiary
within the same corporation.
If within two (2) years
from the approval of this Act, the land or stock transfer envisioned
above
is not made or realized or the plan for such stock distribution
approved
by the PARC within the same period, the agricultural land of the
corporate
owners or corporation shall be subject to the compulsory coverage of
this
Act.
SEC. 32. Production-Sharing.
- Pending final land transfer, individuals or entities owning, or
operating
under lease or management contract, agricultural lands are hereby
mandated
to execute a production-sharing plan with their farmworkers or
farmworkers'
organization, if any, whereby three percent (3%) of the gross sales
from
the production of such lands are distributed within sixty (60) days at
the end of the fiscal year as compensation to regular and other
farmworkers
in such lands over and above the compensation they currently receive: Provided,
That these individuals or entities realize gross sales in excess of
five
million pesos per annum unless the DAR, upon proper application,
determines
a lower ceiling.chan
robles virtual law library
In the event that
the individual or entity realizes a profit, an additional ten percent
(10%)
of the net profit after tax shall be distributed to said regular and
other
farmworkers within ninety days at the end of the fiscal year. To
forestall any disruption in the normal operation of lands to be turned
over to the farmworker-beneficiaries mentioned above, a transitory
period,
the length of which shall be determined by the DAR, will be established.
During this transitory
period, at least one percent (1%) of the gross sales of the entity
shall
be distributed to the managerial, supervisory and technical group in
place
at the time of the effectivity of this Act, as compensation for such
transitory
managerial and technical function it will perform, pursuant to an
agreement
that the farmworker-beneficiaries and the managerial, supervisory and
technical
group may conclude, subject to the approval of the DAR.
SEC. 33. Payment
of Shares of Cooperative or Association. - Shares of a cooperative
or association acquired by farmers-beneficiaries or
workers-beneficiaries
shall be fully paid for in an amount corresponding to the valuation as
determined in the immediately succeeding section. The landowner and the
LBP shall assist the farmer-beneficiaries and worker-beneficiaries in
the
payment for said shares by providing credit financing.
SEC. 34. Valuation
of Lands. - A valuation scheme for the land shall be formulated by
the PARC, taking into account the factors enumerated in Section 17, in
addition to the need to stimulate the growth of cooperatives and the
objective
of fostering responsible participation of the workers-beneficiaries in
the creation of wealth.
In the determination
of a price that is just not only to the individual but to society as
will,
the PARC shall consult closely with the landowner and the
workers-beneficiaries.
In case of disagreement,
the price determined by the PARC, if accepted by the
workers-beneficiaries,
shall be followed, without prejudice to the landowner's right to
petition
the Special Agrarian Court to resolve the issue of valuation.
CHAPTER IX
SUPPORT SERVICES
SEC. 35. Creation
of Support Services Office. - There is hereby created the Office of
Support Services under the DAR to be headed by an Undersecretary.
The office shall
provide general support and coordinative services in the implementation
of the program, particularly in carrying out the provisions of the
following
services to farmer beneficiaries and affected landowners:
(1)
Irrigation
facilities, especially second crop or dry season irrigation facilities;
(2)
Infrastructure
development and public works projects in areas and settlement that come
under agrarian reform, and for this purpose, the preparation of the
physical
development plan of such settlements providing suitable barangay sites,
potable water and power resources, irrigation systems, seeds and
seedling
banks, post harvest facilities, and other facilities for a sound
agricultural
development plan. For the purpose of providing the aforecited
infrastructure
and facilities, the DAR is authorized to enter into contracts with
interested
private parties on long term basis or through joint venture agreements
or build-operate-transfer scheme:
(5)
Extending
to small landowners, farmers and farmers' organizations the necessary
credit,
like concessional and collateral-free loans, for agro-industrialization
based on social collaterals like the guarantees of farmers'
organizations;
(6)
Promoting,
developing and extending financial assistance to small and medium-scale
industries in agrarian reform areas;
(7)
Assigning
sufficient numbers of agricultural extension workers to farmers'
organization;
(8)
Undertake
research, development and dissemination of information on agrarian
reform,
plants and crops best suited for cultivation and marketing, and low
cost
and ecologically sound farm inputs and technologies to minimize
reliance
on expensive and imported agricultural inputs;
(9)
Development
of cooperative management skills through intensive training;chan
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(9)
Assistance
in the identification of ready markets for agricultural produce and
training
in the other various aspects of marketing;
(10) Conduct and
effective information dissemination system through the Department of
Agriculture
to promote marketing and minimize spoilage of agricultural produce and
products;
(11) Create
a credit guarantee fund for agricultural landowners that will enhance
the
collateral value of agricultural lands that are affected or will be
affected
by coverage under the agrarian reform program; and
(12)
Administration,
operation, management and funding of support services programs and
projects
including pilot projects and models related to agrarian reform as
developed
by the DAR.(As
amended by R. A. 7905)
SEC. 36. Funding
for Support Services. - In order to cover the expenses and cost of
support, at least twenty-five percent (25%) of all appropriations for
agrarian
reform shall immediately be set aside and made available for this
purpose:
Provided,
That for the next five (5) years, a minimum of one (1) Agrarian Reform
Community (ARC) shall be established by the DAR, in coordination with
the
local government units, non-governmental organizations and people's
organizations
in each legislative district with a predominant agricultural
population:
Provided, further, That the areas in which the ARCs are to be
established
shall have been fully subjected under this law.
For this purpose,
an Agrarian Reform Community shall be defined as a barangay or a
cluster
of barangays primarily composed and managed by Agrarian Reform
Beneficiaries
who shall be willing to be organized and undertake the integrated
development
of an area and/or their organizations/cooperatives. In each community,
the DAR, together with the agencies and organizations above mentioned,
shall identify the farmers' association, cooperative or their
respective
federations approved by the farmers-beneficiaries that shall take the
lead
in the agricultural development of the area. In addition, the DAR shall
be authorized to package proposals and receive grants, aids and other
forms
of financial assistance from any source.(As
amended by R. A. 7905)
SEC. 37. Support
Services to the Beneficiaries. - The PARC shall ensure that support
services to farmer-beneficiaries are provided, such as:
(a) Land surveys and titling;
(b) Liberalized terms of credit facilities and production loans;
(c) Extension services by way of planting, cropping, production and
post-harvest
technology transfer as well as
marketing and management assistance and support to cooperatives and
farmer
organization;
(d) Infrastructure such as access trails, mini-dams, public utilities,
marketing and storage facilities; and
(e) Research, production and use of organic fertilizers and other local
substances necessary to farming and cultivation.
The PARC shall formulate
policies to ensure that support services to farmer-beneficiaries shall
be provided at all stages of land reform.
The Bagong Kilusang
Kabuhayan sa Kaunlaran (BKKK) Secretariat shall be transferred and
attached to the LBP, for its supervision, including all its applicable
and existing funds, personnel, properties, equipment and records.
Misuse or diversion
of the financial and support services herein provided shall result in
sanction
against the beneficiary guilty thereof, including the forfeiture of the
land transferred to him or lesser sanctions as may be provided by the
PARC,
without prejudice to criminal prosecution.
SEC. 38. Support
Services to Landowners. - The PARC, with the assistance of such
other
government agencies and instrumentalities as it may direct, shall
provide
landowners affected by the CARP and proper agrarian reform programs
with
the following services:
(a) Investment information, financial and counseling assistance;
(b) Facilities, programs and schemes for the conversion or exchange of
bonds issued for payment of the lands acquired with stocks and bonds
issued
by the National Government, the central bank and other government
institutions
and instrumentalities;
(c) Marketing of LBP bonds, as well as promoting the marketability of
said
bonds in traditional and non-traditional financial markets and stock
exchanges;
(d) Other services designed to utilize productively the proceeds of the
sale of such lands for rural industrialization.
A landowner who
invests in rural-based industries shall be entitled to the incentives
granted
to a registered enterprise engaged in a pioneer or preferred area of
investment
as provided for in the Omnibus Investment Code of 1987, or to such
other
incentives as the PARC, the LBP, or other government financial
institutions
may provide.
The LBP shall redeem
a landowner's LBP bonds at face value: Provided, that the
proceeds
thereof shall be invested in a BOI- registered company or in any
agri-business
or agro-industrial enterprise in the region where the landowner has
previously
made investments, to the extent of thirty percent (30%) of the face
value
of said LBP bonds, subject to guidelines that shall be issued by the
LBP.
SEC. 39. Land
Consolidation. - the DAR shall carry out land consolidation
projects
to promote equal distribution of landholdings, to provide the needed
infrastructure
in agriculture, and to conserve soil fertility and prevent erosion.
CHAPTER X
SPECIAL AREAS OF
CONCERN
SEC. 40. Special
Areas of Concern. - As an integral part of the Comprehensive
Agrarian
Reform Program, the following principles in these special areas of
concern
shall be observed:
(1) Subsistence
Fishing. - Small fisher folk, including seaweed farmers, shall be
assured
of greater access to the utilization of water resources;
(2) Logging
and
Mining concessions. - Subject to the requirement of a balanced
ecology
and conservation of water resources, suitable areas, as determined by
the
Department of Environment and Natural Resources (DENR), in logging,
mining
and pasture areas, must be opened up for agrarian settlements whose
beneficiaries
will be required to undertake reforestation and conservation of
products
methods. Subject to existing laws, rules and regulation, settlers and
members
of tribal communities must be allowed to enjoy and exploit the products
of the forests other than timber within the logging concessions.
(3) Sparsely
Occupied Public Agricultural lands. - Sparsely occupied
agricultural
lands of the public domain will be surveyed, proclaimed and developed
as
farm settlements for qualified landless people based on an organized
program
to ensure their orderly and early development
Agricultural land
allocations will be made for ideal family-sized farms as determined by
the PARC. Pioneers and other settlers will be treated equally in every
respect.
Subject to the
prior
rights of qualified beneficiaries, uncultivated lands of the public
domain
shall be made available on a lease basis to interested and qualified
parties.
Parties who will engage in the development of capital-intensive,
traditional
or pioneering crops will be given priority.
The lease period,
which shall not be more than a total of fifty (50) years, shall be
proportionate
to the amount of investment and production goals of the lessee. A
system
of evaluation and audit will be instituted.
(4) Idle,
abandoned,
foreclosed and sequestered lands. - Idle, abandoned, foreclosed and
sequestered lands shall be planned for distribution as homelots and
family-sized
farm lots to actual occupants. If land area permits, other landless
families
will be accommodated in these lands.
(5) Rural
Women.
-
All qualified women members of the agricultural labor force must be
guaranteed
and assured equal rights to ownership of the land, equal shares of the
farm's produce, and representation in advisory or appropriate
decision-making
bodies.chan
robles virtual law library
(6) Veterans
and Retirees. - In accordance with Section 7 of Article XVI of the
Constitution, landless war veterans and veterans of military campaigns,
their surviving spouse and orphans, retirees of the Armed Forces of the
Philippines (AFP) and the Integrated National Police (INP), returnees,
surrenderees, and similar beneficiaries shall be given due
consideration
in the disposition of agricultural lands of the public domain.
(7) Agriculture
Graduates. - Graduates of agricultural schools who are landless
shall
be assisted by the government, through the DAR, in their desire to own
and till agricultural lands.
CHAPTER XI
PROGRAM
IMPLEMENTATION
SEC. 41. The Presidential
Agrarian Reform Council. - The Presidential Agrarian Reform
Council
(PARC) shall be composed of the President of the Philippines as
Chairman,
the Secretary of Agrarian Reform as Vice-Chairman and the following as
members: Secretaries of the Departments of Agriculture; Environment and
Natural Resources; Budget and Management ; Local Government; Public
Works
and Highways; Trade and Industry; Finance; Labor and Employment;
Director-General
of the National Economic and Development Authority; President, Land
Bank
of the Philippines; Administrator, National Irrigation Administration;
and three (3) representatives of affected landowners to represent
Luzon,
Visayas
and Mindanao: Provided, that one of them shall be from the
cultural
communities.
SEC. 42. Executive
Committee. - There shall be an Executive Committee (EXCOM) of the
PARC
composed of the Secretary of the DAR as Chairman, and such other
members
as the president may designate, taking into account Article XIII,
Section
5 of the Constitution. Unless otherwise directed by the PARC, the EXCOM
may meet and decide on any and all matters in between meetings of the
PARC:
Provided,
however, That its decisions must be reported to the PARC
immediately
and not later than the next meeting.
SEC. 43. Secretariat.
- A PARC Secretariat is hereby established to provide general support
and
coordinative services such as inter-agency linkages; program and
project
appraisal and evaluation and general operations monitoring for the PARC.
The Secretariat
shall be headed by the Secretary of Agrarian Reform who shall be
assisted
by an Undersecretary and supported by a staff whose composition shall
be
determined by the PARC Executive Committee and whose compensation shall
be chargeable against the Agrarian Reform Fund. All officers and
employees of the Secretariat shall be appointed by the Secretary of
Agrarian
Reform.
SEC. 44. Provincial
Agrarian Reform Coordinating Committee (PARCCOM). - A Provincial
Agrarian
Reform Coordinating Committee is hereby created in each province,
composed
of a Chairman, who shall be appointed by the President upon the
recommendation
of the EXCOM, the Provincial Agrarian Reform Officer as Executive
Officer,
and one (1) representative each from the Department of Agriculture,
Department
of Environment and Natural Resources and from the LBP; one (1)
representative
each from existing farmers' organizations, agricultural cooperatives
and
non-governmental organizations in the province; two (2) representatives
from landowners at least one (1) of whom shall be a producer
representing
the principal crop of the province; and two (2) representatives from
farmers
and farm workers or beneficiaries, at least one (1) of whom shall be a
farmer or farmworker representing the principal crop of the province,
as
members: Provided, That in areas where there are cultural
communities,
the latter shall likewise have one (1) representative.
The PARCCOM shall
coordinate and monitor the implementation of the CARP in the province.
It shall provide information on the provisions of the CARP, guidelines
issued by the PARC and on the progress of the CARP in the
province.
In addition, it shall:
(a) Recommend to
the PARC the following :
(1) Market
price to be used in the determination of the profit-sharing obligation
of agricultural entities in the province;
(2) Adoption
of the direct payment scheme between the landowner and the farmer
and/or
farmworker-beneficiary: Provided, that the amount and terms of
payment
are not more burdensome to the agrarian reform beneficiary than under
the
compulsory coverage provision of the CARL: Provided, further,
That
the agrarian reform beneficiary agrees to the amount and the terms of
payment
: Provided, furthermore, That the DAR shall act as mediator in
cases
of disagreement between the landowner and the farmer and/or
farmworker-beneficiary:
Provided,
finally, That the farmer and/or farmer-beneficiary shall be
eligible
to borrow from the LBP an amount equal to eighty-five percent (85%) of
the selling price of the land that they have acquired;
(3)
Continuous
processing of applications for lease-back arrangements, joint venture
agreements
and other schemes that will optimize the operating size for agriculture
production and also promote both security of tenure and security of
income
to farmer beneficiaries: Provided, That lease-back
arrangements
should be the last resort. (As amended by
R. A. 7905)
SEC. 45 Province-by-Province
Implementation. - The PARC shall provide the guidelines for the
province-by-province
implementation of the CARP, taking into account peculiarities and needs
of each place, kind of crops needed or suited, land distribution
workload,
beneficiaries' development activities and other factors prevalent or
obtaining
in the area. In all cases, the implementing agencies at the provincial
level shall promote the development of identified ARCs without
neglecting
the needs and problems of other beneficiaries. The ten-year program of
distribution of public and private land in each province shall be
adjusted
from year to year by the province's PARCCOM in accordance with the
level
of operations previously established by the PARC, in every case
ensuring
that support services are available or have been programmed before
actual
distribution is effected.(As
amended by R. A. 7905)
SEC. 46 Barangay
Agrarian Reform Committee (BARC). - Unless otherwise provided in
this
Act, the provisions of Executive Order No. 229 regarding the
organization
of the Barangay Agrarian Reform Committee (BARC) shall be in effect.
SEC. 47. Functions
of the BARC. - In addition to those provided in Executive Order No.
229, the BARC shall have the following function:
(a) Mediate and
conciliate between parties involved in an agrarian dispute including
matters
related to tenurial and financial arrangements;
(b) Assist in the
identification of qualified beneficiaries and landowners within the
barangay;
(c) Attest to the
accuracy of the initial parcellary mapping of the beneficiary's tillage;
(d) Assist
qualified
beneficiaries in obtaining credit from lending institutions;
(e) Assist in the
initial determination of the value of the land;
(f) Assist the DAR
representative in the preparation of periodic reports on the CARP
implementation
for submission to the DAR;
(g) Coordinate the
delivery of support services to beneficiaries; and
(h) Perform such
other functions as may be assigned by the DAR
(2) The BARC shall endeavor
to mediate, conciliate and settle agrarian disputes lodged before it
within
thirty (30) days from its taking cognizance thereof. If after the lapse
of the thirty day period, it is unable to settle the dispute, it shall
issue a certification of its proceedings and shall furnish a copy
thereof
upon the parties within seven (7) days from the expiration of the
thirty days period.
SEC. 48. Legal
Assistance. - The BARC or any member thereof may, whenever
necessary
in the exercise of any of its functions hereunder, seek the legal
assistance
of the DAR and the provincial, city, or municipal government.
SEC. 49. Rules
and Regulations. - The PARC and the DAR shall have the power to
issue
rules and regulations, whether substantive or procedural, to carry out
the objects and purposes of this Act. Said rules shall take effect ten
(10) days after publication in two (2) national newspapers of general
circulation.
CHAPTER XII
ADMINISTRATIVE
ADJUDICATION
SEC. 50. Quasi-Judicial
Powers of the DAR. - The DAR is hereby vested with primary
jurisdiction
to determine and adjudicate agrarian reform matters and shall have
exclusive
original jurisdiction over all matters involving the implementation of
agrarian reform, except those falling under the exclusive jurisdiction
of the Department of Agricultural (DA) and the Department of
Environment
and Natural Resources (DENR).
It shall not be bound
by technical rules of procedure and evidence but shall proceed to hear
and decide all cases, disputes or controversies in a most expeditious
manner,
employing all reasonable means to ascertain the facts of every case in
accordance with equity and the merits of the case. Toward this end, it
shall adopt a uniform rule of procedure to achieve a just, expeditious
and inexpensive determination of every action or proceeding before it.
It shall have the
power to summon witnesses, administer oaths, take testimony, require
submission
of reports, compel the production of books and documents and answers to
interrogatories and issue subpoena, and subpoena duces tecum
and to enforce its writs through sheriffs or other duly deputized
officers.
It shall likewise have the power to punish direct and indirect contempt
in the same manner and subject to the same penalties as provided in the
Rules of Court
Representatives of
farmer leaders shall be allowed to represent themselves, their fellow
farmers
or their organizations in any proceedings before the DAR: Provided,
however, that when there are two or more representatives for any
individual
or group, the representatives should choose only one among themselves
to
represent such party or group before any DAR proceedings.chan
robles virtual law library
Notwithstanding an
appeal to the Court of Appeals, the decision of the DAR shall be
immediately
executory.
SEC. 51. Finality
of Determination. - Any case or controversy before it shall be
decided
within thirty (30) days after it is submitted for resolution. Only one
(1) motion for consideration shall be allowed. Any order, ruling or
decision
shall be final after the lapse of fifteen (15) days from receipt of a
copy
thereof.
SEC. 52. Frivolous
Appeals. - To discourage frivolous or dilatory appeals from the
decisions
or orders on the local or provincial levels, the DAR may impose
reasonable
penalties, including but not limited to, fines or censures upon erring
parties.
SEC. 53. Certification
of BARC. - The DAR shall not take cognizance of any agrarian
dispute
or controversy unless a certification from the BARC that the dispute
has
been submitted to it for mediation and conciliation without any success
of settlement is presented: Provided, however, that if no
certification is issued by the BARC within thirty (30) days after a
matter
or issue is submitted to it for mediation or conciliation, the case or
dispute may be brought before the PARC.
CHAPTER XIII
JUDICIAL REVIEW
SEC. 54. Certiorari.
- Any decision, order, award or ruling of the DAR on any agrarian
dispute
or on any matter pertaining to the application, implementation,
enforcement,
or interpretation of this Act and other pertinent laws on agrarian
reform
may be brought to the Court of Appeals by certiorari except as
otherwise
provided in this Act within fifteen (15) days from receipt of a copy
thereof.
The findings of fact
of the DAR shall be final and conclusive if based on substantial
evidence.
SEC55. No Restraining
Order or Preliminary Injunction.- No court in the Philippines shall
have jurisdiction to issue any restraining order or writ of preliminary
injunction against PARC 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.
SEC. 56. Special
Agrarian Court. - The supreme Court shall designate at least one
(1)
branch of the Regional Trial Court (RTC) within each province to act as
a Special Agrarian Court.
The Supreme Court
may designate more branches to constitution such additional Special
Agrarian
Courts as may be necessary to cope with the number of agrarian cases in
each province. In the designation, the Supreme Court shall give
preference
to the Regional Trial Courts which have been assigned to handle
agrarian
cases or whose presiding judges were former judges of the defunct Court
of Agrarian Relations.
The Regional Trial
Court (RTC) judges assigned to said courts shall exercise said special
jurisdiction in addition to the regular jurisdiction of their
respective
courts.
The Special Agrarian
Courts shall have the power and prerogatives inherent in or belonging
to
the Regional Trial Courts.
SEC. 57. Special
Jurisdiction - The Special Agrarian Courts shall have original
and
exclusive jurisdiction over all petitions for the determination of just
compensation to landowners, and the prosecution of all criminal
offenses
under this Act. The Rules of Court shall apply to all proceedings
before
the Special Agrarian Courts unless modified by this Act.
The Special Agrarian
Courts shall decide all appropriate cases under their special
jurisdiction
within thirty (30) days from submission of the case for decision.
SEC. 58. Appointment
of Commissioners. - The Special Agrarian Courts, upon their own
initiative
or at the instance of any of the parties, may appoint one or more
commissioners
to examine, investigate and ascertain facts relevant to the dispute,
including
the valuation of properties, and to file a written report thereof with
the court.
SEC. 59. Orders
of the Special Agrarian Courts. - No order of the Special Agrarian
Courts on any issue, question, matter or incident raised before them
shall
be elevated to the appellate courts until the hearing shall have been
terminated
and the case decided on the merits.
SEC. 60. Appeals.-
An appeal may be taken from the decision of the Special Agrarian Courts
by filing a petition for review with the Court of Appeals fifteen (15)
days from receipt of notice of the decision; otherwise, the decision
shall
become final.
An appeal from the
decision of the Court of Appeals, or from any order, ruling or decision
of DAR, as the case may be, shall be by a petition for review with the
Supreme Court within a non-extendible period of fifteen (15) days from
receipt of a copy of said decision.
SEC. 61. Procedure
on Review. - Review by the Court of Appeals or the Supreme Court,
as
the case may be, shall be governed by the Rules of Court. The Court of
Appeals, however, may require the parties to file simultaneous
memoranda
within a period of fifteen (15) days from notice, after which the case
is deemed submitted for decision.
SEC. 62. Preferential
Attention in Courts. - All courts in the Philippines, both trial
and
appellate, are hereby enjoined to give preferential attention to all
cases
arising from or in connection with the implementation of the provisions
of this Act.
All cases pending
in court arising from or in connection with the implementation of this
Act shall continue to be heard, tried and decided into their finality,
notwithstanding the expiration of the ten-year period mentioned in
Section
5 hereof.
CHAPTER XIV
FINANCING
SEC. 63. Funding
Source.- The initial amount needed to implement this Act for the
period
of ten (10) years upon approval hereof shall be funded from the
Agrarian
Reform Fund created under Sections 20 and 21 of Executive Order No.
229.Additional
amounts are hereby authorized to be appropriated as and when needed to
augment the Agrarian Reform Fund in order to fully implement the
provisions
of this Act.
Sources of funding
or appropriations shall include the following:
(a) Proceeds of the sales of the Assets Privatization Trust;
(b) All receipts from assets recovered and from sale of ill-gotten
wealth
recovered through the Presidential Commission on Good Government;
(c) Proceeds of the disposition of the properties of the Government in
foreign countries;
(d) Portion of amounts accruing to the Philippines from all sources or
official foreign aid grants and concessional financing from all
countries,
to be used for the specific purposes of financing production credits,
infrastructures,
and other support services required by this Act;
(e) Other government funds not otherwise appropriated.chan
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All funds appropriated
to implement the provisions of this Act shall be considered continuing
appropriations during the period of its implementation.
SEC. 64. Financial
Intermediary for the CARP. - The Land Bank of the Philippines shall
be the financial intermediary for the CARP, and shall insure that the
social
justice objectives of the CARP shall enjoy a preference among its
priorities.
CHAPTER XV
GENERAL PROVISIONS
SEC. 65. Conversion
of Lands- After the lapse of five (5) years from its award,
when
the land ceases to be economically feasible and sound for agricultural
purposes, or the locality has become urbanized and the land will have
greater
economic value for residential, commercial or industrial purposes, the
DAR, upon application of the beneficiary or the landowner, with due
notice
to the affected parties, and subject to existing laws, may authorize
the
reclassification or conversion of the land and its disposition: Provided,
That
the beneficiary shall have fully paid his obligation.
SEC. 65-A Conversion
into Fishpond and Prawn Farms. - No conversion of public
agricultural
lands into fishponds and prawn farms shall be made except in situations
where the provincial government with the concurrence of the Bureau of
Fisheries
and Aquatic Resources (BFAR) declares a coastal zone as suitable for
fishpond
development. In such case, the Department of Environment and Natural
Resources
(DENR) shall allow the lease and development of such areas: Provided,
That
the declaration shall not apply to environmentally critical projects
and
areas as contained in Title (A) sub-paragraph two, (B-5) and (C) and
Title
(B), number eleven (11) of Proclamation No. 2146, entitled "Proclaiming
Certain Areas and Types of Projects as Environmentally Critical and
Within
the the Scope of the Environmental Impact Statement (EIS) System
Established
under Presidential Decree No. 1586", to ensure the protection of
river
systems, aquifers and mangrove vegetations from pollution and
environmental
degradation: Provided, further, That the approval shall be in
accordance
with a set of guidelines to be drawn up and promulgated by the DAR and
the BFAR: Provided, furthermore, That small-farmer cooperatives
and organizations shall be given preference in the award of the
Fishpond
Lease Agreements (FLAs).
No conversion of
more than five (5) hectares of private lands to fishponds and prawn
farms
shall be allowed after the passage of this Act, except when the use of
the land is more economically feasible and sound for fishpond and/or
prawn
farm, as certified by the Bureau of Fisheries and Aquatic Resources
(BFAR)
, and a simple and absolute majority of the regular farm workers or
tenants
agree to the conversion. The Department of Agrarian Reform may
approve
applications for change in the use of the land: Provided, finally, That
no piecemeal conversion to circumvent the provisions of this Act shall
be allowed. In these cases where the change of use is approved, the
provisions
of Section 32-A hereof on incentives shall apply.(As
added by R. A. 7881)
SEC. 65-B. Inventory.
- Within one (1) year from the effectivity of this Act, the BFAR shall
undertake and finish an inventory of all government and private
fishponds
and prawn farms and undertake a program to promote the sustainable
management
and utilization of prawn farms and fishponds. No lease under Section
65-A
hereof may be granted until after the completion of the said inventory.
The sustainable management
and utilization of prawn farms and fishponds shall be in accordance
with
the efflue standards, pollution charges and other pollution control
measures
such as, but not limited to, the quantity of fertilizers, pesticides
and
other chemicals used that may be established by the Fertilizer and
Pesticide
Authority (FPA), the Environment Management Bureau (EMB), and other
appropriate
government regulatory bodies, and existing regulations governing water
utilization, primarily Presidential Decree No. 1067, entitled "A
Decree
Instituting a Water Code, Thereby Revising and Consolidating the Laws
Governing
the Ownership, Appropriation, Utilization, Exploitation, Development,
Conservation
and Protection of Water Resources."(As
added by R. A. 7881)
SEC. 65-C. Protection
of Mangrove Areas. - In existing Fishpond Lease Agreement (FlAs)
and
those that will be issued after the effectivity of this Act, a portion
of the fishpond area fronting the sea, sufficient to protect the
environment,
shall be established as a buffer zone and be planted to specified
mangrove
species to be determined in consultation with the regional office of
the
DENR. The Secretary of Environment and Natural Resources shall provide
the penalties for any violation of this undertaking as well as the
rules
for its implementation.(As
added by R. A. 7881)
SEC. 65-D. Change
of Crops. -The change of crops to commercial crops or high value
crops
shall not be considered as a conversion in the use or nature of the
land.
The change in crop should, however, not prejudice the rights of tenants
or leaseholders should there be any and the consent of a simple and
absolute
majority of the affected farm workers, if any, shall first be obtained.
(As
added by R. A. 7881)
SEC. 66. Exemptions
from Taxes and Fees of Land Transfers. - Transactions under
this
Act involving a transfer of ownership, whether form natural or
juridical
persons, shall be exempted form taxes arising from capital gains. These
transactions shall also be exempted from the payment of registration
fees,
and all other taxes and fees for the conveyance or transfer thereof: Provided,
That
all arrearages in real property taxes, without penalty or interest,
shall
be deductible from the compensation to which the owner may be entitled.
SEC. 67. Free
Registration of Patents and Titles. - All Registers of Deeds are
hereby
directed to register, free from payment of all fees and other charges,
patents, titles and documents required for the implementation of the
CARP.
SEC. 68. Immunity
of Government Agencies from Undue Interference. - No injunction,
restraining
order, prohibition or mandamus shall be issued by the lower courts
against
the Departments of Agrarian Reform (DAR), Department
of Agriculture (DA), the Department of Environment and Natural
Resources
(DENR), and the Department of Justice (DOJ) in their implementation of
the Program.
SEC. 69. Assistance
of Other Government Entities.- The PARC, 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 and
controlled
corporations.
SEC. 70. Disposition
of Private Agricultural Lands. - The sale or disposition of
agricultural
lands retained by a landowner as a consequence of Section 6 hereof
shall
be valid as long as the total landholdings that shall be owned by the
transferee
thereof inclusive of the land to be acquired shall not exceed the
landholdings
ceilings provided for in this Act. Any
sale or disposition of agricultural lands after the effectivity of this
Act found to be contrary to the provisions hereof shall be null and
void.
Transferees of agricultural lands shall
furnish
the appropriate Register of Deeds and the BARC with an affidavit
attesting
that his total landholdings as a result of the said acquisition do not
exceed the landholding ceiling. The Register of Deeds shall not
register
the transfer of any agricultural land without the submission of this
sworn
statement together with proof of service of a copy thereof to the BARC.
SEC. 71. Bank
Mortgages. - Banks and other financial institutions allowed by law
to hold mortgage rights or security interests in agricultural lands to
secure loans and other obligations of borrowers, may acquire title to
these
mortgaged properties, regardless of area, subject to existing laws on
compulsory
transfer of foreclosed assets and acquisition as prescribed under
Section
16 of this Act.
SEC. 72 Leases,
Management, Grower or Services Contracts, Mortgages and Other Claims. -
Lands
covered by this Act under lease, management, grower or service
contracts,
and the like shall be disposed of as follows:
(a) Lease, management, grower or service contracts covering private
lands
may continue under their original terms and conditions until the
expiration
of the same even if such land has, in the meantime, been transferred to
qualified beneficiaries.
(b) Mortgages and other claims registered with the Register of Deeds
will
be assumed by the government up to an amount equivalent to the
landowner's
compensation value as provided in this Act.
SEC. 73. Prohibited
Acts and Omissions. - The following are prohibited:
(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) The conversion by any landowner of his agricultural land into
non-agricultural
use with intent to avoid the application of this Act to his
landholdings
and to dispossess his tenant farmers or the land tilled by them;
(d) The 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 after the
effectivity
of this Act. 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 acquired by virtue of
being a beneficiary, in order to circumvent the provisions of this Act.
SEC. 73-A. Exception.
-
The provisions of Section 73, paragraph (e) to the contrary
notwithstanding,
the sale and/or transfer of agricultural land in cases where such sale,
transfer or conveyance is made necessary as a result of a bank's
foreclosure
of the mortgaged land is hereby permitted.(
As added by R. A. 7881)
SEC. 74Penalties.
-
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. If
the
offender is a corporation or association, the officer responsible
therefor
shall be criminally liable
SEC. 75. Suppletory
Application of Existing Legislation. - The provisions of Republic
Act
Number 3844, as amended, Presidential Decree Numbers 27 and 266 as
amended,
Executive Order Numbers 228 and 229, both Series of 1987, and other
laws
not inconsistent with this Act shall have suppletory effect.
SEC. 76. Repealing
Clause. - Section 35 of Republic Act Number 3844, Presidential
Decree
Number 316, the last two paragraphs of Section 12 of Presidential
Decree
Number 1038, and all other laws, decrees, executive orders, rules and
regulations,
issuances or parts thereof inconsistent with this Act are hereby
repealed
or amended accordingly.
SEC. 77. Separability
Clause. - If, for any reason, any section or provision of this Act
is declared null and void, no other section, provision or part thereof
shall be affected and the same shall remain in full force and effect.
SEC. 78. Effectivity
Clause. - This Act Shall take effect immediately after publication
in at least two (2) national newspapers of general circulation.
Approved:
June 10, 1988
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