The Comprehensive Agrarian Reform Law

7/30/2019 The Comprehensive Agrarian Reform Law

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THE COMPREHENSIVE AGRARIAN REFORM LAW (REPUBLIC ACT NO. 6657, AS AMENDED)

II. Introduction

A. Constitutional Basis

1. Article II, Section 21: The State shall promote comprehensive rural development andagrarian reform.

2. Article XII, Section 1: . . . The State shall promote industrialization and full employmentbased on sound agricultural development and agrarian reform, . . .

3. Article XIII, Section 3: . . . The State shall regulate the relations between workers and

employers, recognizing the right of labor to its just share in the fruits of production and theright of enterprises to reasonable returns on investments, and to expansion and growth.

4. Article XIII, Section 4: The State shall, by law, undertake an agrarian reform programfounded on the right of farmers and regular farmworkers, who are landless, to own directlyor collectively the lands they till or, in the case of other farmworkers, to receive a just shareof the fruits thereof. To this end, the State shall encourage and undertake the justdistribution of all agricultural lands, subject to such priorities and reasonable retention limitsas the Congress may prescribe, taking into account ecological, developmental, or equityconsiderations, and subject to the payment of just compensation. In determining retention

limits, the State shall respect the right of small landowners. The State shall further provideincentives for voluntary land-sharing. aHTDAc

5. Article XIII, Section 5: The State shall recognize the right of farmers, farmworkers, andlandowners, as well as cooperatives, and other independent farmers' organizations to

participate in the planning, organization, and management of the program, and shallprovide support to agriculture through appropriate technology and research, and adequate

financial, production, marketing, and other support services.

6. Article XIII, Section 6: The State shall apply the principles of agrarian reform or

stewardship, whenever applicable in accordance with law, in the disposition or utilization ofother natural resources, including lands of the public domain under lease or concessionsuitable 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 farmworkers in its own agricultureestates which shall be distributed to them in the manner provided by law.

7. Article XIII, Section 8: The State shall provide incentives to landowners to invest theproceeds of the agrarian reform program to promote industrialization, employment creation,

and privatization of public sector enterprises. Financial instruments used as payment fortheir lands shall be honored as equity in enterprises of their choice.

B. Declaration of Principles and Policies[Section 2]

It is the policy of the State to pursue a Comprehensive Agrarian Reform Program (CARP). Thewelfare of the landless farmers and farmworkers will receive the highest consideration to promotesocial justice and to move the nation toward sound rural development and industrialization, and


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the establishment of owner cultivatorship of economic-size farms as the basis of Philippine

agriculture. SITCcE

The State shall promote industrialization and full employment based on sound agriculturaldevelopment and agrarian reform, through industries that make full and efficient use of humanand natural resources, and which are competitive in both domestic and foreign markets: Provided,

That the conversion of agricultural lands into industrial, commercial or residential lands shall takeinto account, tillers' rights and national food security. Further, the State shall protect Filipino

enterprises against unfair foreign competition and trade practices.

The State recognizes that there is not enough agricultural land to be divided and distributed to

each farmer and regular farmworker so that each one can own his/her economic size family farm.This being the case, a meaningful agrarian reform program to uplift the lives and economic statusof the farmer and his/her children can only be achieved through simultaneous industrializationaimed at developing a self-reliant and independent national economy effectively controlled byFilipinos.

To this end, the State may, in the interest of national welfare or defense, establish and operate

vital industries.

A more equitable distribution and ownership of land, with due regard to the rights of landownersto just compensation, retention rights under Section 6 ofRepublic Act No. 6657, as amended, andto the ecological needs of the nation, shall be undertaken to provide farmers and farmworkers

with the opportunity to enhance their dignity and improve the quality of their lives through greaterproductivity of agricultural lands.

The agrarian reform program is founded on the right of farmers and regular farmworkers, who arelandless, to own directly or collectively the lands they till or, in the case of other farmworkers, to

receive a just share of the fruits thereof. To this end, the State shall encourage and undertake thejust distribution of all agricultural lands, subject to the priorities and retention limits set forth inthis Act, taking 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 shallprovide incentive for voluntary land sharing.

As much as practicable, the implementation of the program shall be community-based to assure,among others, that the farmers shall have greater control of farmgate prices, and easier access to

credit.

The State shall recognize the right of farmers, farmworkers and landowners, as well ascooperatives and other independent farmers' organizations, 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 othersupport services.

The State shall recognize and enforce, consistent with existing laws, the rights of rural women to

own and control land, taking into consideration the substantive equality between men and womenas qualified beneficiaries, to receive a just share of the fruits thereof, and to be represented inadvisory or appropriate decision-making bodies. These rights shall be independent of their male

relatives and of their civil status.

The State shall apply the principles of agrarian reform, or stewardship, whenever applicable, inaccordance with law, in the disposition or utilization of other natural resources, including lands of
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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 ancestrallands.

The State may resettle landless farmers and farm workers in its own agricultural estates, whichshall 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 size family farms to be constituted by individual beneficiaries and smalllandowners. LibLex

The State shall protect the rights of subsistence fishermen, especially of local communities, to thepreferential use of communal marine and fishing resources, both inland and offshore. It shall

provide support to such fishermen through appropriate technology and research, adequatefinancial, 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 ofsubsistence fishermen against foreign intrusion. Fishworkers shall receive a just share from theirlabor 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 orthrough 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 reformprogram to promote industrialization, employment and privatization of public sector enterprises.

Financial instruments used as payment for lands shall contain features that shall enhancenegotiability and acceptability in the marketplace.

The State may lease undeveloped lands of the public domain to qualified entities for thedevelopment of capital intensive farms, and traditional and pioneering crops especially those for

exports subject to the prior rights of the beneficiaries under this Act.

C. Definition of Agrarian Reform

1. Agrarian Reform means the redistribution of lands, regardless of crops or fruitsproduced, to farmers and regular farmworkers who are landless, irrespective of tenurialarrangement, to include the totality of factors and support services designed to lift theeconomic status of the beneficiaries and all other arrangements alternative to the physical

redistribution of lands, such as production or profit-sharing, labor administration, and thedistribution of stock, which will allow beneficiaries to receive a just share of the fruits of the

lands they work. [Section 3 (a) ofRA 6657]

2. Distinguished from Land Reform

* Land Reform is the physical redistribution of land such as the programunderPresidential Decree No. 27. Agrarian reform means the redistribution of landsincluding the totality of factors and support services designed to lift the economicstatus of the beneficiaries. Thus, agrarian reform is broader than land reform.

D. RA 6657is Constitutional
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In the case ofAssociation of Small Landowners in the Philippines, Inc. v. Secretary of Agrarian

Reform,1 the Supreme Court held:

"The cases before us present no knotty complication insofar as the question ofcompensable taking is concerned. To the extent that the measures under challenge merelyprescribe retention limits for landowners, there is an exercise of the police power for the

regulation of private property in accordance with the Constitution. But where, to carry outsuch regulation, it becomes necessary to deprive such owners of whatever lands they may

own in excess of the maximum area allowed, there is definitely a taking under the powerof eminent domain for which payment of just compensation is imperative. The takingcontemplated is not a mere limitation of the use of the land. What is required is the

surrender of the title to and the physical possession of the said excess and all beneficialrights accruing to the owner in favor of the farmer-beneficiary. This is definitely anexercise not of the police power but of the power of eminent domain.

"Classification has been defined as the grouping of persons or things similar to each other

in certain particulars and different from each other in these same particulars. To be valid,it must conform to the following requirements: (1) it must be based on substantial

distinctions; (2) it must be germane to the purpose of the law; (3) it must not be l imitedto existing conditions only; and (4) it must apply equally to all the members of the class.The Court finds that all these requisites have been met by the measures here challengedas arbitrary and discriminatory. aAcDSC

"Equal protection simply means that all persons or things similarly situated must betreated alike both as to the rights conferred and the liabilities imposed. The petitionershave not shown that they belong to a different class and entitled to a different treatment.The argument that not only landowners but also owners of other properties must be madeto share the burden of implementing land reform must be rejected. There is a substantialdistinction between these two classes of owners that is clearly visible except to those whowill not see. There is no need to elaborate on this matter. In any event, the Congress isallowed a wide leeway in providing for a valid classification. Its decision is accorded

recognition and respect by the courts of justice except only where its discretion is abusedto the detriment of the Bill of Rights.

"It is worth remarking at this juncture that a statute may be sustained under the policepower only if there is a concurrence of the lawful subject and the lawful method. Putotherwise, the interests of the public generally as distinguished from those of a particularclass require the interference of the State and, no less important, the means employed arereasonably necessary for the attainment of the purpose sought to be achieved and notunduly oppressive upon individuals. As the subject and purpose of agrarian reform havebeen laid down by the Constitution itself, we may say that the first requirement has beensatisfied. What remains to be examined is the validity of the method employed to achieve

the Constitutional goal.

"Eminent domain is an inherent power of the State that enables it to forcibly acquireprivate lands intended for public use upon payment of just compensation to the owner.Obviously, there is no need to expropriate where the owner is willing to sell under termsalso acceptable to the purchaser, in which case an ordinary deed of sale may be agreedupon by the parties. It is only where the owner is unwilling to sell, or cannot accept theprice or other conditions offered by the vendee, that the power of eminent domain willcome into play to assert the paramount authority of the State over the interest of theproperty owner. Private rights must then yield to the irresistible demands of the public
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interest on the time-honored justification, as in the case of the police power, that the

welfare of the people is the supreme law.

"But for all its primacy and urgency, the power of expropriation is by no means absolute(as indeed no power is absolute). The limitation is found in the constitutional injunctionthat "private property shall not be taken for public use without just compensation" and in

the abundant jurisprudence that has evolved from the interpretation of this principle.Basically, the requirements for a proper exercise of the power are: (1) public use and (2)

just compensation.

"[T]he determination of just compensation is a function addressed to the courts of justice

and may not be usurped by any other branch or official of the government. EPZA v.Dulayresolved a challenge to several decrees promulgated by President Marcos providingthat the just compensation for property under expropriation should be either theassessment of the property by the government or the sworn valuation thereof by theowner, whichever was lower.

"With these assumptions, the Court hereby declares that the content and manner of the

just compensation provided for in the afore-quoted Section 18 of the CARP Law is notviolative of the Constitution. We do not mind admitting that a certain degree ofpragmatism has influenced our decision on this issue, but after all this Court is not a

cloistered institution removed from the realities and demands of society or oblivious to theneed for its enhancement. The Court is as acutely anxious as the rest of our people to seethe goal of agrarian reform achieved at last after the frustrations and deprivations of ourpeasant masses during all these disappointing decades. We are aware that invalidation ofsaid section will result in the nullification of the entire program, killing the farmer's hopeseven as they approach realization and resurrecting the specter of discontent and dissent inthe restless countryside. That is not in our view the intention of the Constitution, and thatis not what we shall decree today. TDAHCS

"Accepting the theory that payment of the just compensation is not always required to be

made fully in money, we find further that the proportion of cash payment to the otherthings of value constituting the total payment, as determined on the basis of the areas ofthe lands expropriated, is not unduly oppressive upon the landowner. It is noted that thesmaller the land, the bigger the payment in money, primarily because the small landownerwill be needing it more than the big landowner, who can afford a bigger balance in bondsand other things of value. No less importantly, the government financial instrumentsmaking up the balance of the payment are "negotiable at any time." The other modes,which are likewise available to the landowner at his option, are also not unreasonablebecause payment is made in shares of stock, LBP bonds, other properties or assets, taxcredits, and other things of value equivalent to the amount of just compensation."

II. Scope

A. Lands Covered

1. The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of tenurialarrangement and commodity produced, ALL PUBLIC AND PRIVATE AGRICULTURAL LANDSas provided inProclamation No. 131andExecutive Order No. 229, including other lands ofthe public domain suitable for agriculture: Provided, That landholdings of landowners with atotal area of five (5) hectares and below shall not be covered for acquisition and distributionto qualified beneficiaries. [Section 4]
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a. Agricultural landrefers to land devoted to agricultural activity and not classified as

mineral, forest, residential, commercial or industrial land [Section 3 (c)].

b. Agricultural activitymeans the cultivation of the soil, planting of crops, growing offruit trees, raising of fish, including the harvesting of such farm products, and otherfarm activities and practices performed by a farmer in conjunction with such farming

operations done by persons whether natural or juridical [Section 3 (b)].

2. Specifically, the following lands are covered by the Comprehensive Agrarian ReformProgram:

a. All alienable and disposable lands of the public domain devoted to or suitable foragriculture. No reclassification of forest or mineral lands to agricultural lands shall be

undertaken after the approval of this Act until Congress, taking into accountecological, 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 of 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;and

d. All private lands devoted to or suitable for agriculture regardless of theagricultural products raised or that can be raised thereon. acCETD

B. Exclusions from the Coverage ofCARL

1. Under Section 10, 2 excluded from the coverage of theCARLare lands actually, directlyand exclusively used for:

a. Parks;

b. Wildlife;

c. Forest reserves;

d. Reforestation;

e. Fish sanctuaries and breeding grounds;

f. Watersheds and mangroves.

2. Private lands actually, directly and exclusively used for prawn farms and fishponds shallbe 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 toagrarian reform beneficiaries under the Comprehensive Agrarian Reform Program.

In cases where the fishponds or prawn farms have been subjected to theComprehensive Agrarian Reform Law, by voluntary offer to sell, or commercial farmsdeferment or notices of compulsory acquisition, a simple and absolute majority of the actual


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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, thefishponds or prawn farms shall be distributed collectively to the worker beneficiaries or

tenants who shall form a cooperative or association to manage the same.

3. Likewise, excluded from the coverage of theCARLare lands actually, directly and

exclusively used and found to be necessary for:

a. National defense;

b. School sites and campuses including experimental farm stations operated bypublic or private schools for educational purposes;

c. Seeds and seedling research and pilot production centers;

d. Church sites and convents appurtenant thereto;

e. Mosque sites and Islamic centers appurtenant thereto;

f. Communal burial grounds and cemeteries;

g. Penal colonies and penal farms actually worked by the inmates; and

h. Government and private research and quarantine centers.

4. All lands with eighteen percent (18%) slope and over which are not developed for

agriculture are exempted from the coverage ofCARL.

* An eighteen percent slope is not equivalent to an eighteen-degree angle. Eighteenpercent slope is obtained by having a 100-meter run and an 18-meter rise.

5. In the case ofLuz Farms v. Secretary of Agrarian Reform,3 the Supreme Court hasexcluded agricultural lands devoted to commercial livestock, poultry and swine raising fromthe coverage ofCARL. aSEHDA

The Supreme Court said:

"The transcripts of the deliberations of the Constitutional Commission of 1986 on themeaning of the word "agricultural," clearly show that it was never the intention ofthe framers of the Constitution to include livestock and poultry industry in the

coverage of the constitutionally-mandated agrarian reform program of theGovernment.

"The Committee adopted the definition of "agricultural land" as defined underSection 166 of RA 3844, as land devoted to any growth, including but not limited to

crop lands, saltbeds, fishponds, idle and abandoned land (Record, CONCOM, August7, 1986, Vol. III, p. 11).

"The intention of the Committee is to limit the application of the word "agriculture."Commissioner Jamir proposed to insert the word "ARABLE" to distinguish this kind ofagricultural land from such lands as commercial and industrial lands and residential
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properties because all of them fall under the general classification of the word

"agricultural." This proposal, however, was not considered because the Committeecontemplated that agricultural lands are limited to arable and suitable agricultural

lands and therefore, do not include commercial, industrial and residential lands(Record, CONCOM, August 7, 1986, Vol. III, p. 30).

"In the interpellation, then Commissioner Regalado (now a Supreme Court Justice),posed several questions, among others, quoted as follows:

xxx xxx xxx

"Line 19 refers to genuine reform program founded on the primary right offarmers and farmworkers. I wonder if it means that leasehold tenancy isthereby proscribed under this provision because it speaks of the primary rightof farmers and farmworkers to own directly or collectively the lands they till.As also mentioned by Commissioner Tadeo, farmworkers include those who

work in piggeries and poultry projects.

I was wondering whether I am wrong in my appreciation that if somebodyputs up a piggery or a poultry project and for that purpose hires farmworkerstherein, these farmworkers will automatically have the right to own eventually,

directly or ultimately or collectively, the land on which the piggeries andpoultry projects were constructed. (Record, CONCOM, August 2, 1986, p. 618)

xxx xxx xxx"

"The questions were answered and explained in the statement of the thenCommissioner Tadeo, quoted as follows:

xxx xxx xxx

"Sa pangalawang katanungan ng Ginoo ay medyo hindi kami nagkaunawaan.Ipinaaalam ko kay Commissioner Regalado na hindi namin inilagay ang

agricultural worker sa kadahilanang kasama rito ang piggery, poultry atlivestock workers. Ang inilagay namin dito ay farm worker kaya hindi kasama

ang piggery, poultry at livestock workers (Record, CONCOM, August , 1986,

Vol. II, p. 621).

"It is evident from the foregoing discussion that Section 11 of RA 6657 whichincludes "private agricultural lands devoted to commercial livestock, poultry andswine raising" in the definition of "commercial farms" is invalid, to the extent that the

aforecited agro-industrial activities are made to be covered by the agrarian reformprogram of the State. There is simply no reason to include livestock and poultry

lands in the coverage of agrarian reform. (Rollo, p. 21). EAHDac


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"PREMISES CONSIDERED, the instant petition is hereby GRANTED. Sections 3(b), 11,

13 and 32 of R.A. No. 6657 insofar as the inclusion of raising of livestock, poultry andswine in its coverage as well as the Implementing Rules and Guidelines promulgated

in accordance therewith, are hereby DECLARED null and void for beingunconstitutional and the writ of preliminary injunction issued is hereby MADEpermanent."

III. Schedule of Implementation

A. Period for Implementation[Section 5]

1. The DAR, in coordination with the Presidential Agrarian Reform Council (PARC) shall planand program the final acquisition and distribution of all remaining unacquired and

undistributed agricultural lands from the effectivity of this Act until June 30, 2014.

B. Priorities[Section 7]

1. Guiding Principle: In effecting the transfer, priority must be given to lands that are

tenanted.

2. Factors to consider in the Implementation

a. Need to distribute lands to the tillers at the earliest practical time;

b. Need to enhance agricultural productivity; and

c. Availability of funds and resources to implement and support the program.

3. Phases of Implementation

Phase One: During the five (5)-year extension period hereafter all remaining landsabove fifty (50) hectares shall be covered for purposes of agrarian reform upon theeffectivity of this Act. All private agricultural lands of landowners with aggregatelandholdings in excess of fifty (50) hectares which have already been subjected to a notice

of coverage issued on or before December 10, 2008; rice and corn lands underPresidentialDecree No. 27; all idle or abandoned lands; all private lands voluntarily offered by the

owners for agrarian reform: Provided, That with respect to voluntary land transfer, onlythose submitted by June 30, 2009 shall be allowed: Provided, further, That after June 30,2009, the modes of acquisition shall be limited to voluntary offer to sell and compulsory

acquisition: Provided, furthermore, That all previously acquired lands wherein valuation issubject to challenge by landowners shall be completed and finally resolved pursuant to

Section 17 ofRepublic Act No. 6657, as amended: Provided, finally, as mandated by the

Constitution,Republic Act No. 6657, as amended, andRepublic Act No. 3844, as amended,only farmers (tenants or lessees) and regular farmworkers actually tilling the lands, as

certified under oath by the Barangay Agrarian Reform Council (BARC) and attested underoath by the landowners, are the qualified beneficiaries. The intended beneficiary shall stateunder oath before the judge of the city or municipal court that he/she is willing to work onthe land to make it productive and to assume the obligation of paying the amortization forthe compensation of the land and the land taxes thereon; all lands foreclosed bygovernment financial institutions; all lands acquired by the Presidential Commission on GoodGovernment (PCGG); and all other lands owned by the government devoted to or suitable
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for agriculture, which shall be acquired and distributed immediately upon the effectivity of

this Act, with the implementation to be completed by June 30, 2012. DTSaHI

Phase Two: (a) Lands twenty four (24) hectares up to fifty (50) hectares shalllikewise be covered for purposes of agrarian reform upon the effectivity of this Act. Allalienable and disposable public agricultural lands; all arable public agricultural lands under

agro forest, pasture and agricultural leases already cultivated and planted to crops inaccordance with Section 6, Article XIII of theConstitution; all public agricultural lands which

are to be opened for new development and resettlement: and all private agricultural landsof landowners with aggregate landholdings above twenty four (24) hectares up to fifty (50)hectares which have already been subjected to a notice of coverage issued on or before

December 10, 2008, to implement principally the rights of farmers and regular farmworkers,who are landless, to own directly or collectively the lands they till, which shall be distributedimmediately upon the effectivity of this Act, with the implementation to be completed byJune 30, 2012; and

(b) All remaining private agricultural lands of landowners with aggregate landholdingsin excess of twenty four (24) hectares, regardless as to whether these have been subjected

to notices of coverage or not, with the implementation to begin on July 1, 2012 and to becompleted by June 30, 2013.

Phase Three: All other private agricultural lands commencing with largelandholdings and proceeding to medium and small landholdings under the followingschedule:

(a) Lands of landowners with aggregate landholdings above ten (10) hectares up to

twenty four (24) hectares, insofar as the excess hectarage above ten (10) hectares isconcerned, to begin on July 1, 2012 and to be completed by June 30, 2013; and

(b) Lands of landowners with aggregate landholdings from the retention limit up to ten(10) hectares, to begin on July 1, 2013 and to be completed by June 30, 2014; to

implement principally the right of farmers and regular farmworkers who are landless, toown directly or collectively the lands they till.

The schedule of acquisition and redistribution of all agricultural lands covered bythis 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 PARC, taking into considerationthe following: the landholdings wherein the farmers are organized and understand, the

meaning and obligations of farmland ownership; the distribution of lands to the tillers at theearliest practicable time; the enhancement of agricultural productivity; and the availabilityof funds and resources to implement and support the program: Provided, That the PARC

shall design and conduct seminars, symposia, information campaigns, and other similarprograms for farmers who are not organized or not covered by any landholdings.

Completion by these farmers of the aforementioned seminars, symposia, and other similarprograms shall be encouraged in the implementation of this Act particularly the provisionsof this Section.

The PARC shall establish guidelines to implement the above priorities anddistribution scheme, including the determination of who are qualified beneficiaries:Provided, That an owner-tiller may be a beneficiary of the land he/she does not own but isactually cultivating to the extent of the difference between the area of the land he/sheowns and the award ceiling of three (3) hectares: Provided, further, That collective


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ownership by the farmer beneficiaries shall be subject to Section 25 ofRepublic Act No.

6657, as amended: Provided, furthermore, That rural women shall be given the opportunityto participate in the development planning and implementation of this Act: Provided, finally,

That in no case should the agrarian reform beneficiaries' sex, economic, religious, social,cultural and political attributes adversely affect the distribution of lands. ATcaID

C. Exceptions from the Implementation Phases

1. Land acquisition and distribution shall be completed by June 30, 2014 on a province-by-province basis. In any case, the PARC or the PARC Executive Committee (PARC EXCOM),upon recommendation by the Provincial Agrarian Reform Coordinating Committee

(PARCCOM), may declare certain provinces as priority land reform areas, in which case theacquisition and distribution of private agricultural lands therein under advanced phases maybe implemented ahead of the above schedules on the condition that prior phases in theseprovinces have been completed: Provided, That notwithstanding the above schedules,phase three (b) shall not be implemented in a particular province until at least ninety

percent (90%) of the provincial balance of that particular province as of January 1, 2009under Phase One, Phase Two (a), Phase Two (b), and Phase Three (a), excluding lands

under the jurisdiction of the Department of Environment and Natural Resources (DENR),have been successfully completed. The PARC, upon recommendation of the PARCCOM, maydeclare certain provinces or regions as priority land reform areas, in which case theacquisition and distribution of private agricultural lands therein may be implemented aheadof schedule. [Section 7]

2. The PARC may suspend the implementation ofCARLwith respect to ancestral lands forpurpose of identifying and delineating such lands. [Section 9]

IV. Improvement of Tenurial and Labor Relations

A. Leasehold Tenancy

1. Tenancy in General

a. Definition: Agricultural tenancy is the physical possession by a person of landdevoted to agriculture, belonging to or legally possessed by another for the purpose

of production through the labor of the former and of the members of his immediatefarm household in consideration of which the former agrees to share the harvestwith the latter or to pay a price certain or ascertainable, either in produce or in

money, or in both [Section 3 ofRA 1199,Guerrero v. CA]4

b. Types of Tenancy Relation

i. Sharehold Tenancy; and

ii. Leasehold Tenancy.

2. Leasehold vs. Sharehold Tenancy

* The two tenancy systems are distinct and different from each other. In

sharehold, the tenant may choose to shoulder, in addition to labor, any one or moreof the items of contributions (such as farm implements, work animals, final
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harrowing, transplanting), while in leasehold, the tenant or lessee always shoulders

all items of production except the land. Under the sharehold system, the tenant andthe landholder are co-managers, whereas in leasehold, the tenant is the sole

manager of the farmholding. Finally, in sharehold tenancy, the tenant and thelandholder divide the harvest in proportion to their contributions, while in leaseholdtenancy, the tenant or lessee gets the whole produce with the mere obligation to pay

a fixed rental. [People v. Adillo]5 cCaSHA

Sharehold Leasehold

Expenses of Production Tenant and Landowner Tenant

Management Tenant and Landowner Tenant

Payment Tenant and landowner Tenant gets

the wholedivide the harvest in produce

with theproportion to their mere

obligation to

contributions. payrent.

3. Leasehold vs. Civil Lease

* There are important differences between a leasehold tenancy and a civil lawlease. The subject matter of leasehold tenancy is limited to agricultural lands; that of

civil law lease may be either rural or urban property. As to attention and cultivation,the law requires the leasehold tenant to personally attend to, and cultivate theagricultural land, whereas the civil law lessee need not personally cultivate or work

the thing leased. As to purpose, the landholding in leasehold tenancy is devoted toagriculture, whereas in civil law lease, the purpose may be for any other lawful

pursuit. As to the law that governs, the civil law lease is governed by theCivil Code,whereas leasehold tenancy is governed by special laws. [Gabriel v. Pangilinan]6

Leasehold Tenancy Civil Law Lease

Subject Matter Agricultural lands only Both rural and urban

properties

Attention and Tenant must personally Lessee does not havetoCultivation cultivate personally cultivate

Purpose Agriculture only Any lawful purpose

Governing Law Special laws Civil Code

4. Purpose of the Leasehold Relation: To protect and improve the tenurial and economicstatus of the farmers in tenanted lands. [Section 12]

5. Application [Section 12]

a. Tenanted lands under the retention limit; and
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b. Tenanted lands not yet acquired under theCARL.

B. Production Sharing Plan

1. Application [Section 13]

a. Any enterprise adopting the scheme provided for in Section 32;

b. Any enterprise operating under a production venture, lease, managementcontract or other similar arrangement;

c. Any farm covered by Section 8 (Private agricultural lands leased by Multinationalcorporations) and Section 11 (Commercial farming); and

d. Corporate farms pending final land transfer.

2. Period for Compliance: Within ninety (90) days from effectivity ofCARL

3. Scheme (Applies to those individuals or enterprises realizing gross sales in excess of five

million pesos per annum, unless the DAR sets a lower ceiling) [Section 32]

a. Three percent (3%) of the gross sales from the production of suchlands; TcEaAS

b. Distributed within sixty (60) days of the end of the fiscal year;

c. Treated as additional compensation to regular and other farmworkers of suchlands;

d. During the transitory period (before the land is turned over to the farmworker-beneficiaries), at least one percent (1%) of the gross sales shall be distributed to themanagerial, supervisory and technical group; and

e. If profit is realized, an additional ten percent (10%) of the net profit after taxshall be distributed to the regular and other farmworkers within ninety (90) days ofthe end of the fiscal year.

V. Registration

A. Within 180 days from the effectivity ofCARL, landowners, natural or juridical, shall file a sworn

statement in the assessor's office the following information:

a. the description and area of the property;

b. the average gross income from the property for at least 3 years;

c. the names of all tenants and farmworkers therein;

d. the crops planted in the property and the area covered by the crop as of June 1, 1987;
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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 provincialassessor. (Section 14)

B. The DAR, in coordination with the Barangay Agrarian Reform Committee (BARC) shall registerall agricultural lessees, tenants and farmworkers who are qualified to be beneficiaries under

theCARL. These potential beneficiaries shall provide the following data:

a. names and members of their immediate farm household;

b. owners and administrators of the lands they work on and the length of tenurial

relationship;

c. location and area of the land they work;

d. crops planted; and

e. their share in the harvest or amount of rental paid or wages received.

VI. Private Land Acquisition

A. Retention Limit[Section 6]

1. Five hectares is the retention limit. No person may own or retain, directly or indirectly,

any public or private agricultural land, the size of which shall vary according to factorsgoverning a viable family-sized farm, such as commodity produced, terrain, infrastructure,and soil fertility as determined by the Presidential Agrarian Reform Council (PARC), but in

no case shall the retention limit exceed five (5) hectares. DTEHIA

2. Additional three hectares may be awarded to each child, subject to the followingqualifications:

a. That the child is at least fifteen (15) years of age; and

b. That the child is actually tilling the land or directly managing the farm.

3. Exceptions to the retention limit of five hectares.

a. Landowners whose lands have been covered byPD 27; and

b. Original homestead grantees or direct compulsory heirs who still own the originalhomestead at the time of the approval of CARL, as long as they continue to cultivatesaid homestead.

c. Provincial, city and municipal government units acquiring private agricultural lands

by expropriation or other modes of acquisition to be used for actual, direct andexclusive public purposes, such as roads and bridges, public markets, school sites,resettlement sites, local government facilities, public parks and barangay plazas or


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squares, consistent with the approved local comprehensive land use plan, shall not

be subject to the five (5)-hectare retention limit under this Section and Sections 70and 73 (a) ofRepublic Act No. 6657, as amended: Provided, That lands subject to

CARP shall first undergo the land acquisition and distribution process of the program:Provided, further, That when these lands have been subjected to expropriation, theagrarian reform beneficiaries therein shall be paid just compensation [Section 6-A].

4. Right to choose the area to be retained.

The right to choose the area to be retained, which shall be compact or contiguous,shall pertain to the landowner. If the land retained is tenanted, the tenant shall have the

option to choose whether to remain therein or be a beneficiary in the same or anotheragricultural land. In case the tenant chooses to remain in the retained area, he shall beconsidered a leaseholder and shall lose his right to be a beneficiary under this Act. In casethe tenant chooses to be a beneficiary in another agricultural land, he loses his right as aleaseholder 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 thearea for retention.

B. Procedure

1. Voluntary Land Transfer (VLT) [Section 20]

a. Must be submitted to the DAR within one year from effectivity of theCARL;

b. Must not be less favorable to the transferee than those of the government'sstanding; and

c. Shall include sanctions for non-compliance by either party and shall be dulyrecorded and its implementation monitored by the DAR.

d. Only those submitted by June 30, 2009 shall be allowed.

2. Compulsory Acquisition [Section 16] SDHAcI

a. Notice to acquire the land shall be sent to the landowner and the beneficiaries.The notice shall also be posted in a conspicuous place in the municipal building andthe barangay hall of the place where the property is located.

b. Within thirty (30) days from receipt of the written notice, the landowner shallinform the DAR of his acceptance or rejection of the offer.

c. If the offer is accepted, the LBP pays the landowner and within thirty (30) days,the landowner executes and delivers a deed of transfer to 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 summaryadministrative proceedings to determine the compensation. If he does not concurwith the compensation determined by the DAR, he can bring the matter to the

courts.


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e. Payment of the just compensation as determined by the DAR or the Court.

f. Registration with the Register of Deeds for the issuance of Transfer Certificate of

Title in the name of the Republic of the Philippines.

g. Standing Crops: The landowner shall retain his share of any standing crops

unharvested at the time the DAR shall take possession of the land and shall be givenreasonable time to harvest the same [Section 28].

C. Compensation

1. Determination of Just Compensation.

In determining just compensation, the cost of acquisition of the land, the value ofthe standing crop, the current value of like properties, its nature, actual use and income,the sworn valuation by the owner, the tax declarations, the assessment made bygovernment assessors, and seventy percent (70%) of the zonal valuation of the Bureau ofInternal Revenue (BIR), translated into a basic formula by the DAR shall be considered,

subject to the final decision of the proper court. The social and economic benefitscontributed by the farmers and the farmworkers and by the Government to the property aswell as the nonpayment of taxes or loans secured from any government financing institutionon the said land shall be considered as additional factors to determine its valuation [Section17].

2. UnderEO 405(1990), Land Bank of the Philippines shall be primarily responsible for thedetermination of the land valuation and compensation.

3. Mode of Payment [Section 18]

a. Cash under the following scheme:

i. For lands above 50 hectares 25%

ii. For lands above 24 and up to 50 30%

iii. For lands 24 and below 35% SAHITC

* In case of VOS, the landowner shall be entitled to an additional 5%cash payment. [Section 19]

b. Balance in any of the following:

i. Shares of stock in government-owned or -controlled corporations, LBPpreferred shares, physical assets or other qualified investments;

ii. Tax credits which can be used against any tax liability;

iii. Land Bank of the Philippines Bonds which shall have the followingfeatures:


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* 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 year; and

* Transferability and negotiability.

c. Set-off

* All arrearages in real property taxes, without penalty or interest, shall bedeductible from the compensation to which the owner is entitled. [Section 66]

D. Exemptions from Taxes and Fees

1. Transactions underCARLinvolving a transfer of ownership, whether from natural orjuridical persons, shall be exempted from taxes arising from capital gains. Thesetransactions shall also be exempted from the payment of registration fees, and all othertaxes and fees for the conveyance or transfer thereof; Provided, That all arrearages in real

property taxes, without penalty or interest, shall be deducted from the compensation towhich the owner may be entitled. [Section 66]

2. All Registers of Deeds are hereby directed to register, free from payment of all fees andother charges, patents, titles and documents required for the implementation of CARP.[Section 67]

VII. Land Redistribution

A. Beneficiaries[Section 22]

Beneficiaries, in their order of priority, are:

1. Agricultural lessees and share tenants;

2. Regular Farmworkers: natural persons who are employed on a permanent basis by anagricultural enterprise or farm [Section 3 (h)];

a. Farmer refers to a natural person whose primary livelihood is cultivation of land orthe production of agricultural crops, livestock and/or fisheries either byhimself/herself, or primarily with the assistance of his/her immediate farmhousehold, whether the land is owned by him/her, or by another person under aleasehold or share tenancy agreement or arrangement with the owner thereof[Section 3 (f)]. ISAaTH

b. Farmworker is a natural person who renders service for value as an employee orlaborer in an agricultural enterprise or farm regardless of whether his compensationis paid on a daily, weekly, monthly or "pakyaw"basis. It includes an individual whose

work has ceased as a consequence of, or in connection with, a pending agrariandispute and who has not obtained a substantially equivalent and regular farmemployment [Section 3 (g)].


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3. Seasonal farmworkers: natural persons who are employed on a recurrent, periodic or

intermittent basis by an agricultural enterprise or farm, whether as permanent or non-permanent laborers, such as "dumaan", "sacada", and the like [Section 3 (i)];

4. Other farmworkers: farmworkers who are not regular or seasonal farmworkers [Section3 (j)];

5. Actual tillers or occupants of public lands;

6. Collectives or cooperatives of the above beneficiaries; and

* Cooperatives shall refer to organizations composed primarily of small agriculturalproducers, farmers, farmworkers, 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 ofone member, one vote. A juridical person may be a member of a cooperative, withthe same rights and duties as a natural person [Section 3 (k)].

7. Others directly working on the land.

Before any award is given to a farmer, the qualified children of the landowner must receivetheir three-hectare award.

Rural women refer to women who are engaged directly or indirectly in farming and/orfishing as their source of livelihood, whether paid or unpaid, regular or seasonal, or in foodpreparation, managing the household, caring for the children, and other similar activities[Section 3 (l)].

B. Disqualifications of Beneficiaries[Section 22]

1. Beneficiaries underPresidential Decree No. 27who have culpably sold, disposed of, orabandoned their land;

2. Beneficiaries guilty of negligence or misuse of the land or any support extended to

them;

* The mere fact that the expected quantity of harvest, as visualized and calculatedby agricultural experts, is not actually realized, or that the harvest did not increase, isnot a sufficient basis for concluding that the tenants failed to follow proven farm

practices. [Belmi v. CAR]7

3. Beneficiaries with at least three (3) hectares of agricultural land; and

* Under theCARL, a beneficiary is landless if he owns less than three (3) hectaresof agricultural land. [Section 25]

4. Beneficiaries whose land have been the subject of foreclosure by the Land Bank of thePhilippines. [Section 26] SacDIE

* Under theCARL, the LBP may foreclose on the mortgage for non-payment of thebeneficiary of an aggregate of three (3) annual amortizations. [Section 26]
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C. Awards

1. Emancipation Patents(EPs) are issued for lands covered under Operation Land Transfer

(OLT) ofPresidential Decree No. 27.

2. Certificates of Land Ownership Award(CLOAs) are issued for private agricultural lands

and resettlement areas covered underRepublic Act No. 6657, otherwise known as theComprehensive Agrarian Reform Law of 1988.

3. Free Patentsare issued for public agricultural lands.

* Under Section 15 ofEO 229(1987), all alienable and disposable lands of thepublic domain suitable for agriculture and outside proclaimed settlements shall be

redistributed by the Department of Environment and Natural Resources (DENR).

4. Certificates of Stewardship Contractsare issued for forest areas under the IntegratedSocial Forestry Program.

D. Manner of Payment[Section 26]

1. Lands awarded shall be paid by the beneficiaries to the LBP in thirty (30) annualamortizations at six percent (6%) interest per annum. The payments for the first three (3)years after the awards 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 thevalue of the annual gross production as established by the DAR. Should the scheduledannual payments after the fifth year exceed ten percent (10%) of the annual grossproduction and the failure to produce accordingly is not due to the beneficiary's fault, theLBP may reduce the interest rate or reduce the principal obligation to make the repaymentaffordable.

2. Payment shall be:

a. Thirty (30) annual amortizations (First 3 years may be at reduced amounts);

b. Six percent (6%) interest per annum; and

c. First five (5) annual payments may not be more than five percent (5%) of thevalue of the annual gross production.

E. Ownership Limitations on the Awarded Lands

1. Transferability of Awarded Lands. Lands acquired by beneficiaries may not be sold,

transferred or conveyed except through hereditary succession, or to the government, or tothe Land Bank of the Philippines, or to other qualified beneficiaries for a period of ten (10)years. [Section 27]

* If the land is sold to the government or to the LBP, the children or the spouse ofthe transferee shall have a right to repurchase within a period of two (2) years.

2. Conversions of Lands. An application for conversion may be entertained only after thelapse of five (5) years from the award, when the land ceases to be economically feasible


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and sound for agricultural purposes or the locality has become urbanized and the land will

have a greater economic value for residential, commercial or industrial purposes. [Section65]

VIII. Corporate Farms

A. Definition aSATHE

* Corporate farms are farms which are owned or operated by corporations or otherbusiness associations. [Section 29]

B. Distribution

1. Land Transfer (Voluntarily Offer to Sell or Compulsory Acquisition)

a. General rule: Lands shall be distributed directly to the individual farmworker-beneficiaries.

b. Exception: However, if it is not economically feasible and sound to divide theland, then it shall be owned collectively by the farmworker-beneficiaries through aworkers' cooperative or association. [Section 29]

c. In case the land is transferred to a cooperative or association, the individualmembers of the cooperatives shall be provided with homelots and small farmlots for

their family use, to be taken from the land owned by the cooperative. [Section 30]

2. Capital Stock Transfer [Section 31]

a. This is a non-land transfer. Corporations or associations which voluntarily divest a

proportion of their capital stock, equity or participation in favor of their workers or

other qualified beneficiaries shall be deemed to have complied withCARL.

b. Amount to be divested: Corporations owning agricultural lands may give theirqualified beneficiaries the right to repurchase 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.

* Agricultural activity means the cultivation of the soil, planting of crops,growing of fruit trees, raising of fish, including the harvesting of such farm

products, and other farm activities and practices performed by a farmer inconjunction with such farming operations done by persons whether natural or

juridical [Section 3 (b)].

c. Conditions of the Capital Stock Transfer.

i. The books of the corporation shall be subject to periodic audit by certified

public accountants chosen by the beneficiaries;

ii. The beneficiaries shall be assured of at least one (1) representative in theboard of directors, or in a management or executive committee, if one exists;


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iii. Any share acquired by the beneficiaries shall have the same rights and

features as all other shares; and

iv. Any transfer of shares of stock by the original beneficiaries shall be voidab initiounless said transaction is in favor of a qualified and registeredbeneficiary within the same corporation. EacHCD

d. Period for Compliance: If within TWO (2) YEARS from the approval ofCARLor

from the approval of the PARC of the plan for stock distribution, the stock transfer isnot made or realized, the agricultural land shall be subject to compulsory coverage oftheCARL.

IX. Support Services

A. General Support and Coordinative Services[Section 35]

1. Irrigation facilities;

2. Infrastructure development and public works projects in areas and settlements thatcome under agrarian reform;

3. Government subsidies for the use of irrigation facilities;

4. Price support and guarantee for all agricultural produce;

5. Extending the necessary credit;

6. Promoting, developing and extending financial assistance to small- and medium-scaleindustries in agrarian reform areas;

7. Assigning sufficient numbers of agricultural extension workers to farmers' organizations;

8. Undertaking research, development and dissemination of information on agrarian reformand low-cost and ecologically sound farm inputs and technologies to minimize reliance onexpensive and imported agricultural inputs;

9. Development of cooperative management through intensive training;

10. Assistance in the identification of ready markets for agricultural produce and training inother various aspects of marketing; and

11. Administration, operation, management and funding of support service programs and

projects including pilot projects and models related to agrarian reform.

B. Support Services to Beneficiaries[Section 37]

1. Land surveys and titling;

2. Liberalized terms on credit facilities and production loans;


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3. Extension services by way of planting, cropping, production and post-harvest technology

transfer, as well as marketing and management assistance and support to cooperatives andfarmers' organizations;

4. Infrastructure such as access trail, mini-dams, public utilities, marketing and storagefacilities; and

5. Research, production and use of organic fertilizers and other local substances necessary

in farming and cultivation.

C. Support Services to Landowners[Section 38]

1. Investment information, financial and counselling assistance; EcHIAC

2. Facilities, programs and schemes for the conversion or exchange of bonds issued forpayment of the lands acquired with stocks and bonds issued by the National Government,the Central Bank and other government institutions and instrumentalities;

3. Marketing of LBP bonds, as well as promoting the marketability of said bonds intraditional and non-traditional financial markets and stock exchanges;

4. Other services designed to utilize productively the proceeds of the sale of such lands forrural industrialization;

5. Incentives granted to a registered enterprise engaged in a pioneer or preferred area ofinvestment as provided for in the Omnibus Investment Code or granted by the PARC, theLBP or other government financial institutions for those who invests in rural-basedindustries; and

6. Redemption by the LBP of up to thirty percent (30%) of the face value of its bonds for

landowners who will invest the proceeds of the redemption in a BOI-registered company orin any agri-business or agro-industrial enterprise in the region where they have previouslymade investments.

D. Funding

* At least twenty-five percent (25%) of all appropriations for agrarian reform shall beimmediately set aside and made available for support services. In addition, the DAR shall beauthorized to package proposals and receive grants, aid and other forms of financial

assistance from any source. [Section 36]

X. Special Areas of Concern[Section 40]

A. Subsistence Fishing: Small fisherfolk, including seaweed farmer, shall be assured of greateraccess to the utilization of water resources.

B. Logging and Mining Concessions: Subject to the requirement of a balanced ecology andconservation of water resources, suitable areas in logging, mining and pasture areas, shall beopened up for agrarian settlements whose beneficiaries shall be required to undertakereforestation and conservation production methods.


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* Certificates of Stewardship Contracts are issued for forest areas under the Integrated

Social Forestry Program.

C. Sparsely Occupied Public Agricultural Lands: Sparsely occupied agricultural lands of the publicdomain shall be surveyed, proclaimed and developed as farm settlements for qualified landlesspeople.

* Agricultural land allocations shall be made for ideal family-size farms.

* Uncultivated lands of the public domain shall be made available on a lease basis tointerested and qualified parties. Priority shall be given to those who will engage in thedevelopment of capital-intensive, traditional or pioneering crops.

D. Idle, Abandoned, Foreclosed and Sequestered Lands: Idle, abandoned, foreclosed andsequestered lands shall be planned for distribution as home lots and family-size farmlots to actualoccupants. If land area permits, other landless families shall be accommodated in theselands. ESTCHa

E. Rural Women: All qualified women members of the agricultural labor force must be guaranteedand assured equal rights to ownership of the land, equal shares of the farm's produce, andrepresentation in advisory or appropriate decision-making bodies.

F. Veterans and Retirees: Landless war veterans and veterans of military campaigns, theirsurviving spouses and orphans, retirees of the Armed Forces of the Philippines and the IntegratedNational Police, returnees, surrenderees and similar beneficiaries shall be given due considerationin the disposition of agricultural lands of the public domain.

G. Agriculture Graduates: Graduates of agricultural schools who are landless shall be assisted bythe government in their desire to own and till agricultural lands.

XI. Program Implementation

A. Presidential Agrarian Reform Council(PARC)

1. Composition [Section 41]

a. Chairman: President of the Philippines

b. Vice-Chairman: Secretary of Agrarian Reform

c. Members:

i. Secretary of Agriculture;

ii. Secretary of Environment and Natural Resources;

iii. Secretary of Budget and Management;

iv. Secretary of Local Government;


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v. Secretary of Public Works and Highways;

vi. Secretary of Trade and Industry;

vii. Secretary of Finance;

viii. Secretary of Labor and Employment;

ix. Director-General of National Economic and Development Authority;

x. President of Land Bank of the Philippines;

xi. Administrator of National Irrigation Authority;

xii. Three (3) representatives of affected landowners to represent Luzon,Visayas and Mindanao; and

xiii. Six (6) representatives of agrarian reform beneficiaries, two (2) eachfrom Luzon, Visayas and Mindanao, provided that one of them shall be from

cultural communities.

2. Functions and Duties [EO 229, 1987]

a. Formulate and implement policies, rules and regulations necessary to implementthe CARP;

b. Recommend small farm economy areas; DECcAS

c. Schedule the acquisition and distribution of specific agrarian reform areas; and

d. Control mechanisms for evaluating the owner's declaration of current fair marketvalue.

3. Executive Committee (EXCOM) of the PARC [Section 42]

a. There shall be an Executive Committee of the PARC which shall meet and decideon any and all matters in between meetings of the PARC: Provided, however, That itsdecision must be reported to the PARC immediately and not later than the nextmeeting.

b. Composition: The Secretary of Agrarian Reform shall be the Chairman and itsmembers shall be designated by the President, taking into account Article XIII,

Section 5 of the Constitution (Rights of farmers to participate in the planning,organization and management of the CARP).

4. PARC Secretariat [Section 43]

a. A PARC Secretariat is established to provide general support and coordinativeservices such as inter-agency linkages, program and project appraisal and evaluationand general operations monitoring for the PARC.


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b. Composition: The Secretariat shall be headed by the Secretary of Agrarian Reform

who shall be assisted by an Undersecretary and supported by a staff whosecomposition shall be determined by the PARC Executive Committee.

B. Provincial Agrarian Reform Coordinating Committee(PARCCOM)

1. Composition (Section 44)

a. Chairman: an appointee of the President upon recommendation of the PARCEXCOM;

b. Executive Officer: Provincial Agrarian Reform Officer;

c. Members:

i. Representative from the Department of Agriculture;

ii. Representative from the Department of Environment and Natural

Resources;

iii. Representative from the Land Bank of the Philippines;

iv. One representative each from existing farmers' organizations, agriculturalcooperatives and non-governmental organizations in the province;

v. Two representatives from the landowners, at least one of whom shall be

a producer representing the principal crop of the province;

vi. Two representatives from farmers and farmworker beneficiaries, at leastone of whom shall be a farmer or farmworker representing the principal crop

of the province; and CAETcH

vii. In areas where there are cultural communities, there shall be onerepresentative from them.

2. Functions and Duties

a. Coordinate and monitor the implementation of the CARP in the province;

* The PARC shall provide the guidelines for a province-by-province

implementation of the CARP. The ten-year program of distribution of publicand private lands in each province shall be adjusted from year to year by the

province's PARCCOM, in accordance with the level of operations previouslyestablished by the PARC, in every case ensuring that support services areavailable or have been programmed before actual distribution is effected.

[Section 45]

b. Provide information on the following:

i. Provisions of the CARP;


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ii. Guidelines issued by the PARC; and

iii. Progress of the CARP in the province.

C. Barangay Agrarian Reform Committee(BARC)

1. Composition [EO 229, 1987]

* The BARC shall be operated on a self-help basis and will be composed of thefollowing:

a. Representatives of farmer and farmworker beneficiaries;

b. Representatives of farmer and farmworker non-beneficiaries;

c. Representatives of agricultural cooperatives;

d. Representatives of other farmer organizations;

e. Representatives of the Barangay Council;

f. Representatives of non-governmental organization (NGOs);

g. Representatives of landowners;

h. Department of Agriculture official assigned to the area;

i. Department of Environment and Natural Resources official assigned to thearea;

j. DAR Agrarian Reform Technologist assigned to the area; and

k. Land Bank of the Philippines representative.

2. Functions [EO 229, 1987and Section 47]

* The BARC shall have the following functions:

a. Mediate and conciliate between parties involved in an agrarian dispute;

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'stillage;

d. Assist qualified beneficiaries in obtaining credit from lending institutions;

e. Assist in the initial determination of the value of the land;


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f. Assist the DAR representative in the preparation of periodic reports on the

CARP implementation;

g. Coordinate the delivery of support services to beneficiaries;

h. Participate and give support in the implementation of CARP; and

i. Perform such other functions as may be assigned by the PARC andDAR. TaEIAS

D. Others

1. No injunction, restraining order, prohibition or mandamusshall be issued by the lowercourts against the DAR, DA, DENR and DOJ in their implementation of CARP. [Section 68]

* This does not apply to the Supreme Court.

2. 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, includinggovernment-owned or controlled corporations. [Section 69]

XII. Administrative Adjudication

A. Jurisdiction

1. The Department of Agrarian Reform is hereby vested with primary jurisdiction to

determine and adjudicate agrarian reform matters and shall have exclusive originaljurisdiction over all matters involving the implementation of agrarian reform, except thosefalling under the exclusive jurisdiction of the Department of Agriculture and the Department

of Environment and Natural Resources. [Section 50]

2. DAR Adjudicator

a. Department of Agrarian Reform Adjudication Board (DARAB)

i. Exercises both original and appellate jurisdiction

ii. Exercises functional supervision over the RARADs and PARADs

b. Regional Agrarian Reform Adjudicator (RARAD)

i. Executive Adjudicator in his region

ii. Receives, hears and adjudicates cases which the PARAD cannot handlebecause the latter is disqualified or inhibits himself or because the case is

complex or sensitive

c. Provincial Agrarian Reform Adjudicator (PARAD)

3. Exclusive Jurisdiction of the Secretary of Agrarian Reform


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* Matters involving strictly the administrative implementation of the CARP and

agrarian laws and regulationsshall be the exclusive prerogative of and cognizable bythe Secretary of Agrarian Reform

B. BARC Certification Requirement

1. The DAR shall not take cognizance of any agrarian dispute or controversy unless acertification from the BARC that the dispute has been submitted to it for mediation and

conciliation without any success of settlement is presented. [Section 53]

* Failure to present a BARC certification is not a ground for dismissal of the action.The complainant or petitioner will be given every opportunity to secure the BARCcertification. [Rule III, Section 1 (c) of theDARAB Rules]

2. Exceptions to the BARC Certification Requirement:

a. Failure of the BARC to issue a certification within thirty (30) days after a matter orissue is submitted to it;

b. The required certification cannot be complied with for valid reasons like the non-existence or non-organization of the BARC or the impossibility of convening it. Acertification to that effect may be issued by the proper agrarian reform officer in lieuof the BARC certification; [Rule III, Section 1 (b) ofDARAB Rules]

c. The issue involves the valuation of the land to determine just compensation;[Rule III, Section 2 ofDARAB Rules]

d. The parties reside in different barangays, unless they adjoin each other;

* Where the lands involved in the dispute straddles two or more barangays,

the BARC of the Barangay where the biggest portion lies, shall have theauthority to conduct the mediation or conciliation proceeding.

e. One of the parties is a public or private corporation, a partnership, association or

juridical person, or a public officer or employee and the dispute relates to theperformance of his official functions;

f. The issue involves merely the administrative implementation of agrarian reformlaw, rule, guideline or policy; and EHASaD

g. The issue is beyond the pale of mediation, conciliation or compromise, as

determined by the Secretary of Agrarian Reform.

C. Rules of Procedure

1. 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 withjustice and equity and the merits of the case. [Section 50]


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2. Responsible leaders shall be allowed to represent themselves, their fellow farmers, or

their organizations in any proceedings before the DAR [Section 50]

3. To discourage frivolous or dilatory appeals from the decision or order on the local orprovincial levels, the DAR may impose reasonable penalties, including but not limited tofines or censures upon erring parties. [Section 52]

D. Enforcement Powers

1. It shall have the power to summon witnesses, administer oaths, take testimony, requiresubmission of reports, compel the production of books and documents and answers tointerrogatories and issue subpoena, and subpoena duces tecumand to enforce its writsthrough 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 asprovided in the Rules of Court. [Section 50]

2. The DAR has executed a Memorandum of Agreement with the Philippine National Police,in order that the latter may assist the DAR in the enforcement of its orders.

E. Judicial Review

1. Any decision, order, award or ruling of the DAR on any agrarian dispute or on anymatter pertaining to the application, implementation, enforcement or interpretation oftheCARLand other pertinent laws on agrarian reform may be brought to the Court ofAppeals by certiorari within fifteen (15) days from receipt of a copy thereof. [Section 54]

2. The findings of fact of the DAR shall be final and conclusive if based on substantialevidence.

3. Notwithstanding an appeal to the Court of Appeals, the decision of the DAR shall be

immediately executory. [Section 50]

XIII. Special Agrarian Courts

A. Jurisdiction[Section 57]

1. The Special Agrarian Courts (Regional Trial Courts) shall have original and exclusivejurisdictionover:

a. All petitions for the determination of just compensation to landowners; and

b. The prosecution of all criminal offenses under theCARL.

2. The Special Agrarian Courts, upon their own initiative or at the instance of any of theparties, may appoint one or more commissioners to examine, investigate and ascertain factsrelevant to the dispute, including the valuation of properties and to file a written report

thereof with the court. EICScD

B. Appeals

1. Appeal from the Decision of the Special Agrarian Court


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* Within fifteen (15) daysfrom the receipt of the decision of the Special Agrarian

Court, an appeal may be taken by filing a petition for reviewwith the Court ofAppeals.

2. Appeal from the Decision of the Court of Appeals

* Within a non-extendible period of fifteen (15) daysfrom the receipt of the decisionof the Court of Appeals, an appeal may be taken by filing a petition for reviewwith

the Supreme Court.

XIV. Prohibited Acts and Omissions

A. Prohibited Acts and Omissions

1. Section 73. The following are prohibited.

a. The ownership or possession, for the purpose of circumventing the provisionsofCARL, of agricultural lands in excess of the total retention limits or award ceilings

by any person, natural or juridical, except those under collective ownership byfarmer-beneficiaries.

b. The forcible entry or illegal detainer by persons who are not qualifiedbeneficiaries to avail themselves of the rights and benefits of the CARP.

c. The conversion by any landowner of his agricultural land into non-agriculturaluses with intent to avoid the application ofCARLto his landholdings and todispossess his tenant farmers of 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 urbancenters and city limits either in whole or in part after the effectivity ofCARL.

i. Upon the effectivity ofCARL, any sale, disposition, lease, managementcontract or transfer of possession of private lands executed by the original

landowner in violation of CARL shall be null and void; Provided, however, thatthose executed prior to CARL shall be valid only when registered with theRegister of Deeds within three (3) months after the effectivity ofCARL.

[Section 6]

* Exception: Banks and other financial institutions allowed by law to

hold mortgage rights or security interests in agricultural lands to secureloans and other obligations of borrowers, may acquire title to these

mortgaged properties, regardless of area, subject to existing laws oncompulsory transfer of foreclosed assets and acquisition as prescribedunder Section 16 ofCARL[Section 71] ETDAaC

ii. Disposition of private lands is in violation ofCARLif it is over the retention

limit.
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Documents

The Comprehensive Agrarian Reform Law