Concepts of Land Reform (2)

8/3/2019 Concepts of Land Reform (2)

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Concepts of LandReform


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The Land tenure system describes the

legal and contractual arrangements by which

cultivators gain access to the productivepowers of the land. Such arrangements may bea matter of customs or traditions. The tenuresystem constitutes the rules and proceduresgoverning the rights, responsibilities andLiberties of individuals and groups in the useand control over the basic resources of land

Land Tenure System


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Sometimes, the legal system may even be

different from the traditional or de

facto, system. The legal framework maybe ofmore recent making than the one molded bycustom, and, therefore, this legal system maycome in conflict with the customary framework.Part of the land problems in Mindanao stemsfrom the conflict between communal formsof ownership (customary, traditional, defactoframework of the Muslims) and the legalframework of private, titled ownership (torrens

title system of the settlers) which was theresult of the laws assed b the central

Land Tenure System


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In many countries, especially in low-income,

traditional societies, land itself represents a

principal form of wealth. Land is therefore aprincipal source not only of income but also ofeconomic and political power.

The political and other non-economicdimensions of power can be sufficiently strong(as in any traditional feudal system) so that thetenant or farmer is made to follow the wishes

or impositions of the landlords. This can be inthe votin or other abuses of ower b the

Land Tenure System


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If land were relatively free, land tenure

problems would hardly arise. With high

population growth comes crowding, whichmeans progressive increases in the man-to-land ratio. The competition for land becomesacute. Land tenures arise only in areas wherethe land is densely occupied. Supported bytraditional and legal framework,some individuals may then own more landwhile the many others fail to acquire any.

Why there is need for

land reform?


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Tradition land tenure systems have been cited

as major cause of the poor economic

conditions of the rural areas in manydeveloping countries. There maybe an increaseagricultural output. But without appropriateimprovements in tenure system, the cultivatorsof the land may not share adequately inagricultural progress. Without sufficientopportunities to share equitably from theproducts of the farm, the progressive impulsesin the farmer, such as risk-taking in the

adoption of more productive technology, arenot encoura e.

Why there is need for

land reform?


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Agrarian reform refers to changes that are

sought in the land tenure system, but goes

beyond the question of land rights. It coverssuch issues as who owns or does not own, howland is used and who shares in the distributionof the produce of the land. It includes thoseaspects of change that pertain the landproductivity and rate of agriculturaldevelopment. Sometimes, it even coverschanges in social statues and political power ofthe farmer.

Land Reform vs

Agrarian Reform?


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Land reform, or land redistribution, is an aspect

of agrarian reform. In order to make land

redistribution successful, other components ofagrarian policies are needed, such as thosethat increase the development potential of theland.

Land Reform vsAgrarian Reform?


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Agrarian reform therefore covers some or all thefollowing elements:

Distribution of land to the cultivator

Security of tenure and fair system of rentalpayments

Improved methods of cultivation through theimprovement of rural institutions serving the


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It is fair to say, however, that in most

rural societies, the question of land ownership

is the most critical. Hence, land reform takes ona central position as a component of agrarianpolicies. The redistribution of land ownershipand other land rights has taken on differentforms, depending on the particular historicalcircumstances of a country


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Redistribution of Land

Land to the Landless Tillers

Greater Security for Tenants

Rent Reduction

Land Ownership Ceiling

The Political Economy of Land Reform

Content of Land

Reform


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Where landownership is concentrated and a

landlord class is receiving rents from the land,

the argument for land redistribution is strong.Large landed estates are expropriated by thestate authority. These are then broken up intosmaller farms for distribution to the cultivator-farmers. Redistribution with compensation giverise to a means of compensation cash orbonds for the former landowner.



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Cash payments are not usually for the full value

of the land. Since famers are usually poor, they

cannot acquire land by paying cash. Thegovernment has to come in between. Thegovernment pays the landlord, and the newlandowner has to find a means of paying theinstallments (amortize to fully pay for the land.Usually, the government would use an agency,or a land bank, as the means of facilitating thistransaction.



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Land valuation is a prelude to compensation. In

most cases, valuation is based on factors such

as tax records, land revenues, rent collected,landlords net income and produce. Marketprices are seldom used, except as a yardstickfor download valuation. This is so because landprices are seldom fully in line with the actualproductivity of the land.



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The objective of the land reform program may

be to promote the owner-cultivator. Hence,

landless farmers are to be given land which tofarm. Land distribution has taken the form ofmoving farmers from areas where from man-to-land ratio is very high to those where it is low.

Land to the landless

tillers


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Land resettlement is undertaken as part

of land reform, especially in the more sparsely

populated areas of the country. But a moreactive program has undertaken years ago whenlarge Virgin Islands were being opened forsettlement. This practice included the grantingof the homestead, which is a grant of a landnot in excess of 24 hectares, taken from publiclands for conversion into a farm. Some parts ofMindanao were opened as a result of this policyin the Philippines.

Land to the landless

tillers


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In situations where land is rented by the

farmers, the farmers can be driven off the land.

The circumstances are adverse to the tenantfarmer. With high rents and insecure tenure,they are unable to improve their economicconditions, especially since the farmersprobably live on the margin of subsistence. Part

of the problem is the low productivity oftraditional agricultural practices, but insecurityof tenure creates uncertainties that preventthe farmer from taking a more creative

approach to farming methods.

Greater Security fortenants


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Crop-sharing arrangements, or rental

payments, when the landlord contributes only

the land while the tenants provide allcomponents of farming, are commonly high.For instance, rents raging rate from 50 to 70per cent have been found to exist in manyparts of Asia. In the Philippines, crop sharing

arrangements has been in this range until alaw regarding rentals (known as tenancyshares) reduce them to 30 per cent.

Rent Reduction


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Rent reduction may not capture some of

fundamental relationship that occurs before

sharing in the proceeds. There maybe a wholeset of cost deductions that are undertaken,such as the cost of inputs, including cropfinancing and the valuation of the inputs. Inmany cases, the financing of the cost maybe

tilted in favor of a high amount being paid tothe landlord before the net proceeds areshared and the rental fixed.

Rent Reduction


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Compliance to rental fixing arrangements by

law is a problem in most land reform

legislation. The bargaining power is generallyon the side of the landlords, unless the tenanthas some security of tenure.

Rent Reduction


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The objective of owner-farmers may be a

feature of the land reform program. This means

to abolition to tenancy as a land tenuresystem. In this program the need of land-ownership ceiling is significant.

The population-to-land ration (or populationdensity) differs by country and region(within acountry). The ownership ceiling can be use as ameans of widening the landownership

Land Ownership

Ceiling


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HISTORY &

EVOLUTION OFMAJOR AGRARIAN

REFORMLAWS/ISSUANCE/PR

OGRAMS UNDERTHE DIFFERENT

PHILIPPINE


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A. MANUEL L. QUEZON (1935-1944)

1935 Constitution

The promotion of

social justice to ensurethe well-being &economic security of all

people should be theconcern of the State.


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Act No. 4054

(Rice Share Tenancy Act)

- first law on crop-sharing

- legalized the 50-50 share betweenlandlord and tenant


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B. Manuel A. Roxas (1946-1948)

Republic Act No. 34

-an act amending

certain sections of ActNo. 4054, as amended,otherwise known as ThePhilippine Rice Share

Tenancy Act.


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- established a 70-30 sharingagreement between tenant and landlord

- whoever shouldered the expense ofplanting & harvesting and provided thework animals would be entitled to 70% ofthe harvest

- reduced the interest on landownerloans to tenant at no more than 6%

instead of 10%


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C. ELPEDIO R. QUIRINO (1935-1953)

Executive Order No.355

-created the LandSettlement &Development Corporation

-dissolved the NationalLand SettlementAdministration, the Rice &Corn Production


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October 23, 1950

-Land Settlement & Development

Corporation (LASEDECO) was created toaccelerate the resettlement programwhich was launched shortly before WorldWar II


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Land Settlement & Development

Corporation (LASEDECO)

-replaced the national LandSettlement Administration (NLSA)

-takes over the responsibilities of theAgricultural Machinery Equipment

Corporation and Rice and Corn ProductionAdministration


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D.RAMON MAGSAYSAY (1953-1957)

Republic Act No.1160

(NARRA Law)

-an act to further implementthe free distribution ofAgricultural Lands of the publicdomain as provided for inCommonwealth Act No. 691.

-abolished the Land


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NARRA

-established in order to hasten free distributionof agricultural lands of the public domain to

landless tenants and farm workers

- particularly aimed at the peasant base on the

HUK (Hukbo ng Bayan Laban sa Hapon-HUKBALAHAP)

-successful in attracting farmer-turned rebels to

a peaceful life by giving them home lots and farms


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E. DIOSDADO P. MACAPAGAL(1961-1965)


(Agricultural Land

Reform Code /Code ofAgrarian Reforms)

-an act to ordain theAgricultural Land reform Code& to Institute Land reforms inthe Philippines including theAbolition of Tenancy & the

Channeling of capital into


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-aimed to make the farmers owners of

the land they titled

-lowered the retention limit from 300 to

70 hectares

-abolished share tenancy & instituted

leasehold system

-invested rights of preemption &

redemtion for tenant farmers


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- institutionalized a judicial system of

agrarian cases

-incorporated extension, marketing &

supervised credit system of services tofarmer beneficiaries.

-establish owner-cultivatorship & theeconomic family-sized farm as the basis ofPhilippine agriculture and as consequence,divert landlord capital in agriculture to

industrial development


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- created the Land Authority headed by

the Governor for its implementation and tocarry out the aforementioned basisobjective

-incorporated some of the features ofprevious land reform laws

-exempted coverage of plantation cropswhich were deemed too important asexport earners that time


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F. FERDINAND E. MARCOS (1965-1986)


-an act amending Act No.3844, as amended,otherwise known as theAgricultural Land Reform Code


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-significantly amended several

provisions of Republic Act No. 3844

-created the Department of Agrarian

reform

-instituted the Code of Agrarian Reforms


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Presidential Decree No. 2

(Proclaming the Entire Country as aLand Reform Area)

-placed the whole country under landreform program


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Presidential Decree No. 27

(Decreeing the Emancipation of Tenantsfrom the Bondage of the Soil, Transferringto them the ownership of the Land they tilland providing the instruments and

mechanisms therefore)

-restricted land reform scope to

tenanted rice and corn lands

-provided for tenanted lands devoted

to rice and corn to pass in


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G. CORAZON C. AQUINO (1986-1982)

1987 Constitution

(Article II, Section21)

The State shall promotecomprehensive ruraldevelopment and agrarian

reform.


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Proclamation 131

(Instituting a ComprehensiveAgrarian Reform Program)

-instituted the CARP as a majorprogram of the government

-Agrarian Reform Fund (ARF)

-special fund

-P50 billion to cover estimated cost


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-covers all agricultural landsregardeless of tenurial agreement andcommodity produced


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H. FIDEL V. RAMOS (1992-1998)

Executive Act No.7881

-an act amendingcertain provisions ofRepublic Act No. 6657


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Amended certain provision of Republic

Act No. 6657, more significantly Section10 thereof on exemptions and exclusionsfrom CARP, to wit:

a. Land

-actually, directly or exclusively usedfor parks and wildlife, forest reserves,

reforestation, fish sanctuaries &breeding grounds, watersheds andmangroves


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b. Private Lands

- actually, directly or exclusively usedfor prawn farms & fishponds

c. Lands- actually, directly or exclusively used

and found to be necessary for sites andinstitutions & all lands with 18% slope

and over, except those already developed


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I. JOSEPH E. ESTRADA (1998-2001)

Executive Act No. 26

-providing

opportunities for thedevelopment ofbeneficiaries underComprehensive Land

Reform Program tobecome ProductiveEntrepreneurs.


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lands covered by Certificates of LandOwnership Award (CLOA)

- now be accepted as collateral tosecure loans

-loan proceeds shall be usedexclusively in the furtherance of theagricultural productivity of the land andrelated activities.


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J. GLORIA MACAPAGAL-ARROYO(2001-2010)

Bayan-Anihan

(Bayan-AnihanProgram for Rural

development- BPRD)

-DARs banner program

under the ArroyoAdministration to hastenthe implementation ofCARP


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6 Main Thrust of Bayan-Anihan

a. Fast tracking of land acquisition &distribution

b. Integrating, rationalizing & institutionalizingthe delivery of support services

c. Swift delivery of agrarian justice

d. Promoting peace

e. Intensifying & institutionalizing marketing

f. Modernizing the DAR bureaucracy

C h i A i


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Republic act no. 6657 or the Comprehensive

Agrarian reform Program pertains to the

redistribution of all public and privateagricultural land regardless of crops planted ortenurial arrangement, to landless farmers andall farm workers, to include all the necessarysupport services designed to improve the

economic status of beneficiaries and increaseland productivity.

Comprehensive AgrarianReform Program

C h i A i


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Landowners whose land will be subjected for

redistribution are entitled to just compensation.

Moreover, they are allowed to retain a portionof their landholdings of their choice. Theretention limit is as follows:

Land owner: 5 hectares

Each child of the land owner: 3 hectares(provided that the child is at least 15 years old)


C h i A i


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The comprehensive agrarian reform program

has a 10 year implementation period which

starts from the affectivity of republic act. 6657.The implementation period is divided into 3phases:


C h i A i


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Phase one

Rice and corn lands under PD 27

All idle or abandoned lands

All private lands voluntarily offered by theowners for agrarian reform

All lands foreclosed by government financialinstitutions

All lands acquired by the PresidentialCommission on Good Government

All other lands owned by the government


C h i A i


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Phase two

All alienable and disposable public agricultural

lands. All arable public agricultural lands under agro-

forest, pasture, and agricultural leases alreadycultivated and planted to crops

All public agricultural lands which are to beopened for new development and resettlement

All private agricultural lands in excess of 50hectares


C h i A i


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Phase three

Landholdings above 24 hectares up to 50

hectares Landholdings from the retention limit up to 24

hectares


C h i A i


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Qualified beneficiaries of CARP:

Leasehold tenants and share tenants

Regular farm workers

Season farm workers

Other farm workers

Actual Tillers or occupants of public lands

Other who are directly working on the land

Cooperatives of the above beneficiaries


C h i A i


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No qualified beneficiaries may own more than 3hectares of agricultural lands.

Land Cultivated under contract with multinationalcorporations shall be programmed forredistribution immediately upon effectivity of R.A.

6657 and to completed within 3 years.


C h i A i


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Ancestral Lands provided that AutonomousRegions shall make their own agrarian reform

program.

Commercial Farms. Farms devoted to livestock,poultry and swine raising, aquaculture, fruit

farms, vegetable and cut flower farms cacao,coffee and rubber plantations shall be consideredfor redistribution after 10 years of the effectivityof CARP.


C h i A i


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Lands exempted from redistribution include the

following: Parks, wildlife, forest reserves,

reforestation, fish sanctuaries, breedinggrounds, watersheds and mangroves, nationaldefense sites, school sites and campusesincluding school operated experimental farmstations, seeds and seedlings research and

pilot production centers, church sites andconvents, mosque sites and islamic centerscommunal burial grounds and cemeteries,penal colonies, research centers, quarantine

centers and all land with 80 degree slope andover.


Comprehensi e Agrarian


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Mode of payment to Landowner:

A. Cash

1. 25% cash for lands above 50 hectares

2. 30% cash for lands above 24 hectares up

to 50 hectares

3. 35% for lands 24 hectares and Below

B. Shares of stock in Government owned

institutions


Comprehensive Agrarian


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C. Tax Credits

D. Land Bank Bonds

Landowners who voluntarily offer their land for

redistribution is entitled to an additional 5% cashpayment.




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Land values shall be determined through thefollowing:

1. Cost of the acquisition of land

2. Nature, actual use and income of the land

3. Current Value of like properties

4. Sworn Valuation by the owner

5. Tax Declarations

6. Assessed value




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Necessary Support Services that must beprovided under CARP

1. Irrigation Policies

2. Infrastructure development and public

works3. Collateral-free loans

4. Cooperative management training

5. Marketing services




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Special Areas of concern

1. Subsistence Fishing

2. Logging and mining concessions

3. Sparsely occupied public agricultural lands

4. Idle, abandoned, foreclosed andsequestered lands

5. Rural Women

6. Veteran and Retirees




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In the 2002 SONA, GMA cited the

accomplishment of 250,000 land reform out of

the 200,000 initial target. The 2003 SONAtechnical reports cites the followingaccomplishments:

Distribution of 407, 639 hectares of public andprivate lands since January 2001 to June 2003.

Distribution of Five Certificate of ancestraldomain covering 73, 719 hectares

Worked for the passage of Republic act. No.9176 h f l hi h di


Documents

Concepts of Land Reform (2)