Agrarian Reform Notes

8/10/2019 Agrarian Reform Notes

1/7

R.A. 3884

Scope Any agricultural land regardless of crops planted

Retention Limit None specified

Landowners Compensation

1. Valuation

Negotiation among FB, LO, DAR, and LBP; subjectto court approval

2. Payment Scheme Cash - 10%

Bonds - 90%

3. Features

Term -25 years

Interest Rate -6% Tax Free

Maturity Period -Balloon payment on the 25th year

Interest - May 20, Nov. 20 Payment Dates

Payment By Farmer - Beneficiaries

1. Amount to be Amortized Equal to the amount paid to LO

2. Term

25 years3. Interest Rate

6%

Land Ownership

Ownership of land awarded to farmer allocatees by theBank until fully paid.

Process

Acquisition

petition of at least 1/3 of tenants

valuation thru negotiation between LO & FB; DARand LBP

execution of Deed of Sale (DOS) between LBP andLO

court approval of DOS

transfer of title from LO to LBP

payment of 10% cash, 90% bonds

Process

Disposition

Subdivision survey of the estate (DAR)

screening and allocation of FBs (DAR)

issuance of CLTs (DAR)

lot-by-lot appraisal

generation of Contract to Sell in favor of FBs

preparation/accomplishment of judicial forms andregistration thereof

execution of Deed of Absolute Sale (DAS) in favor ofFBs


2/7

P.D. 27

Scope Private agricultural lands primarily devoted to rice

corn under a system of sharecrop or leaseholdsystem whether classified as landed estate or not

Deemed Owners

(As of October 21, 1972)

All qualified tenant farmers

Award Limit

Family-size farm of 5 hectares if not irrigated and 3hectares if irrigated

Landowners Compensation1. Valuation

Average Gross Production for 3 normal cropcycles immediately preceding 1972 x 2.5 x Govt.Support price*

*Rice - P35.00

*Corn - P31.002. Payment Scheme

Cash - 10% / 20% / 30%

Bonds - 90% / 80% / 70%

Features of LB Bonds

Term -25 years

Interest Rate -6% tax free

Maturity Period

-Balloon payment on 25th year Interest Payment -May 20 and Nov. 20

Dates

Payment by Farmer - Beneficiaries

1. Amount to be Amortized- Equal to amount paid to LO2. Term

- 15 years3. Interest Rate - 6 years

Process

Identification of land / landowner/ tenant

Preparation of parcellary mappings

Issuance of CLT

Valuation -- LTPA and BCLP

Issuance of Emancipation Patent


3/7

E.O. 228

SCOPE

All privately owned rice and corn lands tenanted coveredby PD 27 unvalued as of August 18, 1987 (Program A)

Retention Limit

7 hectares

Landowners Compensation1.Valuation

Same as P.D. 27

Foreclosure of Mortgage

When FB fails to pay three / or the equivalent of three

annual amortizations

Transferability

Ownership may be transferred after full payment.

Process

Identification of land / landowner / tenant

Final survey

Issuance of Emancipation Patent

Valuation (BCLP) as updated by LVSS

Release of mortgage upon full payment

Payment by Farmer - Beneficiaries1. Amount to be -Equal to amount paid to LO Amortized

2. Term -20 years -Lands already valued and

financed likewise extended a 20 year payment period

3. Interest Rate -6% with 2% reduction for prompt payment

Features of the 10-Year LB Bonds

Interest Rate -91 day T-Bill rate net of withholding tax

Maturity Period -10% of the value every year

Interest Payment -Every semester from date of Dates issue


4/7

E.O. 229

SCOPE

All public and private agricultural lands including otherlands of public domain suitable to agriculture

Prog. B

Sequestered, foreclosed and forcloseable, idle,voluntarily offered and expropriated lands

Prog. C

Tenanted non-rice, non-corn lands/ estates under laboradministration

Prog. D

Other public and government lands

Retention Limit

To be determined by Congress

Landowners Compensation1. Valuation --See Formula-- (CS / LI / TD)2. Payment Scheme -Cash -10%

-Bonds

-90%3. Features of LB Bonds Term -10% Interest Rate -91-day T-Bill rate net of withholding tax Maturity Period -10% of the value every year Interest Payment -Every Semester from date of

Dates issue

Payment by Farmer - Beneficiaries

1. Amount to beAmortized -Affordability amortization not

to exceed 10% gross annual production

2. Term -30 Years

3. Interest Rate -6% with 2% reduction for prompt payment

Process

Compulsory land registration of all landowners

(LISTASAKA I) Identification of land / landowners / beneficiaries

Transfer of Certificate of Title from LO to the Republic

Payment of 10% cash, 90% bonds

Assistance to LOs (New in EO 229)

Collection from FBs


5/7

R.A. 6657

Scope

All public and private aggie lands including lands of publicdomain suitable for aggie

Retention Limits

Not to exceed 5 has.; Each child may retain 3 has.provided he is:

at least 15 years old

actually tilling/managing the land

P.D. 27 retention

no change at 7 has.

Process

Compulsory land registration of all LOS and registrationof beneficiaries (LISTASAKA II)

Identification of land / landowners / beneficiaries

Land valuation

Execution of Deed of Transfer in favor of the Govt. andsurrender of Certificate of Title and other muniment of title

Payment to Landowners

Land distribution within 180 days from time DAR takesactual possession of land (award limi: 3 has.)

Assistance to LOs / FBs

Collection from FBs

Priorities Phase 1

Rice and corn lands under P.D. 27

Idle and abandoned lands

Voluntary offers

Lands foreclosed by GFIs

Lands acquired by PCGG

Govt lands suitable for aggie

Timeframe

Immediately, to be completed in 4 years

Phase 2

Alienable and disposable public aggielands

Arable public aggie lands

Public lands to be opened for devt andresettlement

private aggie lands in excess of 50 has.,insofar as excess is concerned

Timeframe

Immediately, to be completed with 4 years

Phase 3

All other private aggie lands Timeframe:

24-50 has

start on 4th yr.; to be completed with 3yrs

24 has. & below

start on 6th year.; to be completedwithin 4 yrs.

Last Phase Commercial farms (commercial livestock,

poultry, etc,)

Timeframe

To be distributed after 10 yrs fromeffectivity of CARL


6/7

Features of AR Bond

Term -10 years

Interest Rate -91 day T-Bill Rate

Maturity -10% of value every year

Interest Payment -Every Semester

Payment by Beneficiaries

1. Tenor A. Year 1 to Year 3 - 2.5% of Annual Gross Production B. Year 4 to Year 5 - 5% of AGP

C. Year 6 to Year 30 - 10% of AGP

2. Term -30 years3. Interest Rate - 6 Years

Notes:

On #1 ----> AFFORDABILITY Clause / Amortization

On #2, #3 -----> Regular Amortization

Adopt ------> Whichever is LOWER!

COMPARATIVE FEATURES OF THE VARIOUSLEGISLATIONS ON AGRARIAN REFORM

SCOPE RETENTION

LIMIT

RA 3844 All aggie lands None specfied

PD 27 Tenanted riceand corn lands

7 has

EO 228 Uncompletedrice & corn landsunder PD 27

7 has. fortenanted rice

and corn lands

EO 229 All other aggielands

To bedetermined by

Congress

RA 6657 All public &private aggielands, includingother lands ofpublic domainsuitable for

agriculture

5 has.;3 has. for each

child


7/7

LANDOWNERS COMPENSATION

VALUATION CASH BONDS

RA 3884 Negotiationamong FB,LO, DAR,and LBP;subject tocourtapproval

10% 90%

PD 27 Averagegross prod. x

2.5 x govt.support pricefor 1 cavanof rice/cornon 10/21/72

10% 90%

EO 228 Same as PD27; underBCLP

20% 80%

EO 229 Fair market

value

10% 90%

VALUATION CASH BONDS

RA 6657 Currentvalue, LOs

swornvaluation,Taxdeclaration,Assessmentmade byGovt

25%30%

35%40%

othermodes

available

75%70%

65%60%

othermodes

available

Documents

Agrarian Reform Notes