agrarian land reform laws

8/13/2019 Agrarian Land Reform Laws

1/37

MANILA REALTORS BOARDINC.

CPE/CRESAR SEMINARMANOR HOTEL , MANILA

January 26, 2014


2/37

Land reform in the Philippineshas long beena contentious issue rooted in thePhilippines's Spanish Colonial Period. Someefforts began during the American ColonialPeriod with renewed efforts during theCommonwealth, following independence,during Martial Law and especially followingthe People Power Revolution in 1986. The

current law, the Comprehensive AgrarianReform Program, was passed following therevolution and recently extended until 2014.
http://en.wikipedia.org/wiki/History_of_the_Philippines_(1521%E2%80%931898)http://en.wikipedia.org/wiki/Comprehensive_Agrarian_Reform_Programhttp://en.wikipedia.org/wiki/Comprehensive_Agrarian_Reform_Programhttp://en.wikipedia.org/wiki/Comprehensive_Agrarian_Reform_Programhttp://en.wikipedia.org/wiki/Comprehensive_Agrarian_Reform_Programhttp://en.wikipedia.org/wiki/History_of_the_Philippines_(1521%E2%80%931898)


3/37


4/37


5/37


6/37


7/37


8/37

Rural land use has basically been agricultural.For decades, agricultural land in our country was

tilled by tenants working for landlords under ashare-tenancy arrangement. In order to improve

give them ownership of land they tilled, a policyof agrarian reform was adopted. Here are some

of the important laws on agrarian reform.


9/37

Title: Decreeing the emancipation of tenants fromthe bondage of the soil, transferring to them theownership of the land they till and providing theinstruments and mechanisms therefor.

PD 27 applied to rice and corn tenants who wereawarded a family-size farm of 5 hectaresif notirrigated and 3 hectaresif irrigated. In all cases,the landowner was given the right to retain 7hectares. Farm land valuation was set at 2.5 times

the average harvest of 3 normal crop years. Tenants paid for awarded land at cost plus 6%

interest in 15 equal annual amortization,guaranteed by the farmers cooperative and stocksin GOCCs.


10/37

Declaration of Policy. 1) To establish owner-cultivatorship and the economic

family-size farm as the basis of Philippine agriculture anddivert landlord capital in agriculture to industrial

development; 2) To achieve a dignified existence for the small farmers; 3) To create a viable social and economic structure in

agriculture conducive to productivity; 4) To apply all labor laws equally to both industrial and

agricultural wage earners; 5) To provide a more vigorous and systematic land

resettlement and public land distribution; 6) To make the small farmers more independent, self-reliant

and responsible citizens..


11/37

Lessees Right of Pre-emption. - In case the agricultural lessordecides to sell the landholding, the agricultural lessee shall havethe preferential right to buy the same;

Lessees Right of Redemption. - In case the landholding is sold toa third person without the knowledge of the agricultural lessee,the latter shall have the right to redeem the same;

Affidavit Required in Sale of Land Subject to Right of Pre-emption. - No deed of sale of agricultural land under cultivationby an agricultural lessee or lessees shall be recorded in theRegistry of Property unless accompanied by an affidavit of thevendor that he has given the written notice required or that theland is not worked by an agricultural lessee.

Right of Pre-emption and Redemption Not Applicable to Land tobe Converted into Residential, Industrial and Similar Purposes


12/37

Any premature selling of farmlands is prohibited bylaw, (Sec. Reyes) referring to the ComprehensiveAgrarian Reform Law (Carl), which sets the limit tofive hectares of farmland

After the 10-year holding period, a farmer-beneficiarycould sell his/her Carp-acquired land to anyindividual be s/he an ordinary buyer or a previousowner since the law does not distinguish who areeligible to buy Carp-covered land for as long as thebuyer will cumulatively own no more than five

hectares. Carp-covered land could also be sold five years after it

was awarded, provided that a farmer-beneficiary filesan application for its conversion to non-agriculturaluses and the DAR subsequently approves . ( Sec Reyes)


13/37

1) To have possession and peaceful enjoyment of the land; 2) To work on the land in a manner and method which

conform to proven farm practices; 3) To mechanize all or any phase of his farm work; and 4) To deal with millers and processors Right to a Home Lot.- The agricultural lessee shall have the

right to continue in the exclusive possession and enjoymentof any home lot he may have occupied;

Right to be Indemnified for Labor. - The agricultural lesseeshall have the right to be indemnified for the cost and

expenses incurred in the cultivation, planting or harvestingand other expenses incidental to the improvement of hiscrop in case he surrenders or abandons his landholding forjust cause or is ejected therefrom.


14/37

The consideration for the lease of riceland andlands devoted to other crops shall not be morethan the equivalent of 25% of the average

normal harvest during the three agriculturalyears immediately preceding the date theleasehold was established after deducting theamount used for seeds and the cost of

harvesting, threshing, loading, hauling andprocessing, whichever are applicable:


15/37

Exemption from Leasehold of Other Kinds of Lands.-Fishponds, saltbeds, and lands principally planted to citrus,coconuts, cacao, coffee, durian, and other similar permanent trees.

Rights for Agricultural Labor.

1) Right to self-organization; 2) Right to engage in concerted activities; 3) Right to minimum wage 4) Right to work for not more than eight hours; 5) Right to claim for damages for death or injuries sustained

while at work; 6) Right to compensation for personal injuries, death or illness;

and 7) Right against suspension or lay-off.


16/37

The first approach to agrarian reform was R.A. 3844 whichabolished share tenancy and substituted for it a leaseholdopportunity for tenants. Despite an extensive program withmany support agencies, the leasehold system did not lead toownership of the land for tenants. The key policies adopted

were --

1. Abolition of Agricultural Share Tenancy. Agriculturalshare tenancy, as herein defined, is hereby declared to becontrary to public policy and shall be abolished:

2. Establishment of Agricultural Leasehold Relation.- Theagricultural leasehold relation shall be established byoperation of law in accordance with Section four of thisCode and, in other cases, either orally or in writing,expressly or impliedly.


17/37

3. Creation of the Land Authority.Created to carry outthe policy of establishing owner-cultivatorship; under thecontrol and supervision of the President of the Philippines.

4. Organization of Cooperative Associations. - For thepurpose of more efficient management, the farmer

beneficiaries may organize themselves into cooperativeassociations. 5. Distribution of Agricultural Lands of the Public

DomainThe President may reserve public agriculturalland for disposition. Such land shall be surveyed, titled andtransferred to the Land Bank, which shall reduce said title

into individual titles for specific parcels. 6. Creation of the Land Bank.- The Land Bank of the

Philippines was established.


18/37

7. Reorganization of ACCFA to Align Its Activities.TheAgricultural Credit and Cooperative FinancingAdministration created under R.A. 821, as amended by R.A.1285, was reorganized.

8. Creation of the Agricultural Productivity Commission.

The Bureau of Agricultural Extension of the Department ofAgriculture and Natural Resources was placed directlyunder the President and renamed Agricultural ProductivityCommission.

9. Creation of National Land Reform Council.A Councilcomposed of the Governor of the Land Authority, who shall

act as Chairman, the Administrator of the AgriculturalCredit Administration, the Chairman of the Board ofTrustees of the Land Bank, the Commissioner of theAgricultural Productivity Commission and another memberappointed by the President.


19/37


20/37

Declaration of Principles and Policies.

Comprehensive Agrarian Reform Program(CARP)

Promote social justice and to move the nationtoward sound rural development andindustrialization

Establishment of owner cultivatorship ofeconomic-size farms as the basis of


21/37

Agrarian Reform- redistribution of lands, regardless of crops or fruitsproduced, to farmers and regular farmworkers who are landless,irrespective of tenurial arrangement..

Agriculture, Agricultural Enterprise or Agricultural Activity-cultivation and harvesting of crops, fruit trees, livestock, poultry or fish,and other farm activities and practices..

Agricultural Land- land devoted to agricultural activity and notclassified as mineral, forest, residential, commercial or industrial land. Agrarian Dispute- any controversy relating to tenurial arrangements,

whether leasehold, tenancy, stewardship or otherwise, over landsdevoted to agriculture..

Idle or Abandoned Land- any agricultural land not cultivated, tilled ordeveloped to produce any crop nor devoted to any specific economic

purpose continuously for a period of three (3) years.. Farmer- person whose primary livelihood is cultivation or the

production of agricultural crops.. Farmworker- person who renders service for value as an employee or

laborer


22/37


23/37

Retention Limits.

retention of landowner - 5 hectaresplus 3 hectares per child who is at least 15 and is actuallytilling the land or directly managing the farm..

Landowner has the right to choose; provided - If areaselected for retention is tenanted, the tenant shall have the

option to choose - a) To remain therein as a leaseholder; b)To be a beneficiary in the same or another agricultural landwith similar or comparable features. The tenant mustexercise this option within a period of one (1) year.

Multinational Corporations.All lands of the publicdomain leased, held, possessed or operated by multinational

corporations shall be acquired/distributed within 3 years. Ancestral Lands.The right of these communities to their

ancestral lands shall be protected..


24/37

Exemptions and Exclusions.parks, wildlife,forest reserves, reforestation, fish sanctuaries andbreeding grounds, watersheds, and mangroves,national defense, school sites and campuses

including experimental farm stations operated bypublic or private schools for educational purposes,seeds and seedlings research and pilot productioncenters, church sites, convents, mosque sites,Islamic centers, communal burial grounds andcemeteries, penal colonies and penal farms,government and private research and quarantinecenters and all lands with 18% slope and over,


25/37

Commercial Farming.Commercial farms.. shall besubject to immediate compulsory acquisition anddistribution after (10) years from the effectivity of the Act.

Registration: Landowners shall register within 180 days;Beneficiaries shall be listed by DAR in coordination with the

Barangay Agrarian Reform Committee (BARC). Land Acquisition (a) DAR shall send its notice to acquire the land. (b) Within

30 days landowner shall reply. (c) If landowner accepts,LBP pays within 30 after deed and surrender of title. (d) Iflandowner rejects summary proceedings, 15 days; DARdecision in 30 days. (e) DAR deposits with bankcompensation in cash or in LBP bonds and requests RD toissue TCT, thereafter proceed with the redistribution; (f)Any party who disagrees may go to court.


26/37

Valuation and Mode of Compensation. 1) Cash payment, under the following terms and conditions;

Excess of 50 hectares 25% cash, balance in bonds; 24 to 50hectares 30% cash balance in bonds; 24 hectares and below 35%cash, balance in bonds

(2) Shares of stock in GOCCs, LBP preferred shares, (3) Tax credits which can be used against any tax liability; (4) LBP bonds, which are -- 10-year bonds at market interest rates

aligned with 91-day T-bill rates; may be used to buy governmentland, APT assets, shares of GOCCs, surety for bail bonds,performance bonds, loans with government institution; paymentfor taxes, tuition fees, hospital fees, etc.

Incentives for Voluntary Offers for Sales.additional fivepercent (5%) cash payment.

Voluntary Land Transfer.Subject to notice and approval byDAR.


27/37

Land Redistribution Priority:(a) agricultural lessees and share tenants; (b)

regular farmworkers; (c) seasonal farmworkers; (d)other farmworkers; (e) actual tillers or occupants ofpublic lands; (f) collectives or cooperatives of the abovebeneficiaries; and (g) others directly working on theland.

Distribution Limit.No qualified beneficiary mayown more than three (3) hectares of agriculturalland.award shall be completed (180) days from

DARsactual possession of the land. Shall be evidencedby a Certificate of Land Ownership Award, to berecorded in the Register of Deeds concerned andannotated on the Certificate of Title.


28/37

Payment by Beneficiaries. To the LBP in thirty (30) annual amortizations at six percent

(6%) interest per annum. payments for the first three (3) years may be at reduced rates;

provided, that the first 5 annual payments need not be more

than 5% of the value of the annual gross production.. The LBP shall have a lien by way of mortgage on the land

awarded and this mortgage may be foreclosed for non-paymentof an aggregate of three (3) annual amortizations..

Transferability of Awarded Lands.may not be sold,transferred or conveyed except through hereditary

succession, or to the government, or the LBP, or toother qualified beneficiaries for a period of ten (10)years.. children or the spouse of the transferor shallhave a right to repurchase within 2 years.


29/37

Corporate Farms

Farms Owned or Operated by Corporations orOther Business Associations.In general, landsshall be distributed directly to the individual

worker-beneficiaries. Homelots and Farmlots for Members of

Cooperatives.The individual members of thecooperatives or corporations mentioned in the

preceding section shall be provided with homelotsand small farmlots for their family use, to be takenfrom the land owned by the cooperative orcorporation.


30/37

Support Services under the DAR shall provide generalsupport and coordinative services --

1) Irrigation facilities, 2) Infrastructure developmentand public works projects ; 3) Government subsidiesfor irrigation facilities; 4) Price support and guaranteefor all agricultural produce; 5) Necessary credit, 6)Financial assistance to small-and medium-scaleindustries in agrarian reform areas; 7) Agriculturalextension workers to farmers' organizations; 8) R&D onagrarian reform 9) Development of cooperative

management skills; 10) Identification of markets foragricultural produce and 11) Administration andfunding of support services, programs and projectsincluding pilot projects as developed by the DAR.


31/37


32/37


33/37


34/37

Financing. Funding Source. (a) Proceeds of the sales of the Assets Privatization

Trust; (b) ..sales of ill-gotten wealth recovered throughthe PCGG; (c) Proceeds of the disposition of theproperties of the Government in foreign countries; (d)

Portion of amounts accruing to the Philippines from allsources of official foreign grants and concessionalfinancing from all countries, to be used for the specificpurposes of financing production credits,infrastructures, and other support services required by

this Act; (e) Other government funds not otherwiseappropriated. Financial Intermediary for the CARP.Land Bank of

the Philippines.


35/37


36/37

1. Awards. 3 hectares per tenant under a Certificate ofLand Ownership Award (CLOA). Tenants may opt to stayas leaseholder or relocate as beneficiary but must decidewithin one year. Beneficiaries can not sell acquired land for10 years.

2. Retention. Landowners can retain a maximum of 5

hectares; plus 3 hectares to each child 15 yrs old, actuallytilling/managing farm. Landowners can choose location oftheir retention;

3. Compensation to Landowner: partly in cash and balance

in financial instruments (Land Bank bonds) 50 hectares or more - 25% cash; 24-50 hectares 30% cash;

Below 24 hectares 35% cash;


37/37

Exemption: LGUs exempt from 5 hectare retention limit; Payment for awarded land: Beneficiaries shall pay LBP in 30 years at 6% interest. LBP

shall have a lien by way of mortgage, and can foreclose if 3 years delinquent; Holding period: Awarded lands can not be transferred 10

years, except by hereditary succession, or to thegovernment, LBP, or other beneficiaries through DAR ;

Right to repurchase: Children or spouse of the transferor

may repurchase within 2 years; Conversion: 5 years from award DAR may approve

conversion but irrigated and irrigable lands, shall not besubject to conversion.

agrarian land reform laws

Documents