Republic Act No.

9700

August 7, 2009

AN ACT STRENGTHENING THE COMPREHENSIVE AGRARIAN REFORM PROGRAM (CARP), EXTENDING

THE ACQUISITION AND DISTRIBUTION OF ALL AGRICULTURAL LANDS, INSTITUTING NECESSARY
REFORMS, AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 6657,
OTHERWISE KNOWN AS THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988, AS AMENDED, AND
APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

Section1. Section 2 of Republic Act No. 6657, as amended, otherwise known as the Comprehensive Agrarian
Reform Law of 1988, is hereby further amended to read as follows:

"SEC. 2. Declaration of Principles and Policies. - It is the policy of the State to pursue a
Comprehensive Agrarian Reform Program (CARP). The welfare of the landless farmers and
farmworkers will receive the highest consideration to promote social justice and to move the nation
toward sound rural development and industrialization, and the establishment of owner
cultivatorship of economic-size farms as the basis of Philippine agriculture.

"The State shall promote industrialization and full employment based on sound agricultural
development and agrarian reform, through industries that make full and efficient use of human and
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 take into
account, tillers' rights and national food security. Further, the State shall protect Filipino enterprises
against unfair foreign competition and trade practices.

"The State shall protect the rights of subsistence fishermen, especially of local communities, to the
preferential use of communal marine and fishing resources, both inland and offshore. It shall
provide support to such fishermen through appropriate technology and research, adequate
financial, production and marketing assistance and other services. The State shall also protect,
develop and conserve such resources. The protection shall extend to offshore fishing grounds of
subsistence fishermen against foreign intrusion. Fishworkers shall receive a just share from their
labor in the utilization of marine and fishing resources.

"The State shall be guided by the principles that land has a social function and land ownership has
a social responsibility. Owners of agricultural land have the obligation to cultivate directly or through
labor administration the lands they own and thereby make the land productive.

"The State shall provide incentives to landowners to invest the proceeds of the agrarian reform
program to promote industrialization, employment and privatization of public sector enterprises.
Financial instruments used as payment for lands shall contain features that shall enhance
negotiability and acceptability in the marketplace.

"The State may lease undeveloped lands of the public domain to qualified entities for the
development of capital-intensive farms, and traditional and pioneering crops especially those for
exports subject to the prior rights of the beneficiaries under this Act."

Section 2. Section 3 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 3. Definitions. - For the purpose of this Act, unless the context indicates otherwise:

"x x x
"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 status
of the farmer and his/her children can only be achieved through simultaneous industrialization
aimed at developing a self-reliant and independent national economy effectively controlled by
Filipinos.

"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 landowners to
just compensation, retention rights under Section 6 of Republic Act No. 6657, as amended, and to
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 greater
productivity of agricultural lands.

"The agrarian reform program is founded on the right of farmers and regular farmworkers, who are
landless, 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 the
just distribution of all agricultural lands, subject to the priorities and retention limits set forth in this
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 shall
provide incentive for voluntary land-sharing.

"(f) Farmer refers to a natural person whose primary livelihood is cultivation of land or the
production of agricultural crops, livestock and/or fisheries either by himself/herself, or primarily with
the assistance of his/her immediate farm household, whether the land is owned by him/her, or by
another person under a leasehold or share tenancy agreement or arrangement with the owner
thereof.

"x x x

"(1) Rural women refer to women who are engaged directly or indirectly in farming and/or fishing as
their source of livelihood, whether paid or unpaid, regular or seasonal, or in food preparation,
managing the household, caring for the children, and other similar activities."

Section 3. Section 4 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 4.Scope. -The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of
tenurial arrangement and commodity produced, all public and private agricultural lands as provided
in Proclamation No. 131 and Executive Order No. 229, including other lands of the public domain
suitable for agriculture:Provided, That landholdings of landowners with a total area of five (5)
hectares and below shall not be covered for acquisition and distribution to qualified beneficiaries.

"More specifically, the following lands are covered by the CARP:

"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 as
cooperatives 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 other
support 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 women
as qualified beneficiaries, to receive a just share of the fruits thereof, and to be represented in
advisory 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, in
accordance with law, in the disposition or utilization of other natural resources, including lands of
the public domain, under lease or concession, suitable to agriculture, subject to prior rights,
homestead rights of small settlers and the rights of indigenous communities to their ancestral
lands.

"The State may resettle landless farmers and farm workers in its own agricultural estates, which
shall be distributed to them in the manner provided by law.

"By means of appropriate incentives, the State shall encourage the formation and maintenance of
economic-size family farms to be constituted by individual beneficiaries and small landowners.

"(a) All alienable and disposable lands of the public domain devoted to or suitable
for agriculture. No reclassification of forest or mineral lands to agricultural lands
shall be undertaken after the approval of this Act until Congress, taking into
account ecological, developmental and equity considerations, shall have
determined by law, the specific limits of the public domain;

"(b) All lands of the public domain in excess 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 the
agricultural products raised or that can be raised thereon.

"A comprehensive inventory system in consonance with the national land use plan shall be
instituted by the Department of Agrarian Reform (DAR), in accordance with the Local Government
Code, for the purpose of properly identifying and classifying farmlands within one (1)year from
effectivity of this Act, without prejudice to the implementation of the land acquisition and
distribution."

Section 4. There shall be incorporated after Section 6 of Republic Act No. 6657, as amended, new sections to read
as follows:

"SEC. 6-A. Exception to Retention Limits. - Provincial, city and municipal government ,units
acquiring private agricultural lands by expropriation or other modes of acquisition to be used for
actual, direct and exclusive public purposes, such as roads and bridges, public markets, school

sites, resettlement sites, local government facilities, public parks and barangay plazas or 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 70 and 73(a) of Republic 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, the agrarian reform beneficiaries therein shall be paid just compensation."

"SEC. 6-B. Review of Limits of Land Size. - Within six (6) months from the effectivity of this Act, the
DAR shall submit a comprehensive study on the land size appropriate for each type of crop to
Congress for a possible review of limits of land sizes provided in this Act."

Section 5. Section 7 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 7. Priorities. - The DAR, in coordination with the Presidential Agrarian Reform Council
(PARC) shall plan and program the final acquisition and distribution of all remaining unacquired and
undistributed agricultural lands from the effectivity of this Act until June 30, 2014. Lands shall be
acquired and distributed as follows:

"Phase One: During the five (5)-year extension period hereafter all remaining lands above fifty (50)
hectares shall be covered for purposes of agrarian reform upon the effectivity of this Act. All private
agricultural lands of landowners with aggregate landholdings 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 under Presidential Decree 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, only those 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 is subject
to challenge by landowners shall be completed and finally resolved pursuant to Section 17 of
Republic Act No. 6657, as amended: Provided, finally, as mandated by the Constitution, Republic
Act No. 6657, as amended, and Republic 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 under oath by the landowners, are the qualified
beneficiaries. The intended beneficiary shall state under oath before the judge of the city or
municipal court that he/she is willing to work on the land to make it productive and to assume the
obligation of paying the amortization for the compensation of the land and the land taxes thereon;
all lands foreclosed by government financial institutions; all lands acquired by the Presidential
Commission on Good Government (PCGG); and all other lands owned by the government devoted
to or suitable for agriculture, which shall be acquired and distributed immediately upon the
effectivity of this Act, with the implementation to be completed by June 30, 2012;

"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 the acquisition and
distribution of private agricultural lands therein under advanced phases may be implemented
ahead of the above schedules on the condition that prior phases in these provinces 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, 2009 under 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 shall establish guidelines to implement the above priorities and distribution scheme,
including the determination of who are qualified beneficiaries: Provided, That an owner-tiller may
be a beneficiary of the land he/she does not own but is actually cultivating to the extent of the
difference between the area of the land he/she owns and the award ceiling of three (3) hectares:
Provided, further, That collective ownership by the farmer beneficiaries shall be subject to Section
25 of Republic Act No. 6657, as amended: Provided, furthermore, That rural women shall be given
the opportunity t o 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."

Section 6. The title of Section 16of Republic Act No. 6657, as amended, is hereby further amended to read as
follows:

"SEC. 16. Procedure for Acquisition and Distribution of Private Lands."

Section 7. Section 17of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 17. Determination of Just Compensation. - In determining just compensation, the cost of
acquisition of the land, the value of the 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 by government assessors, and seventy percent (70%) of the zonal valuation of
the Bureau of Internal 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 benefits
contributed by the farmers and the farmworkers and by the Government t o the property as well as
the nonpayment of taxes or loans secured from any government financing institution on the said
land shall be considered as additional factors to determine its valuation."

"Phase Two: (a) Lands twenty-four (24) hectares up to fifty (50) hectares shall likewise be covered
for purposes of agrarian reform upon the effectivity of this Act. All alienable and disposable public
agricultural lands; all arable public agricultural lands under agro-forest, pasture and agricultural
leases already cultivated and planted to crops in accordance with Section 6, Article XIII of the
Constitution; all public agricultural lands which are to be opened for new development and
resettlement: and all private agricultural lands of 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 1O, 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 distributed immediately upon the effectivity of this Act, with the implementation to be
completed by June 30, 2012; and

Section 8. There shall be incorporated after Section 22 of Republic Act No. 6657, as amended, a new section to
read as follows:

"(b) All remaining private agricultural lands of landowners with aggregate landholdings in 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 be completed by June 30,
2013;

"SEC. 24. Award to Beneficiaries. - The rights and responsibilities of the beneficiaries shall
commence from their receipt of a duly registered emancipation patent or certificate of land
ownership award and their actual physical possession of the awarded land. Such award shall be
completed in not more than one hundred eighty (180) days from the date of registration of the title
in the name of the Republic of the Philippines:Provided, That the emancipation patents, the
certificates of land ownership award, and other titles issued under any agrarian reform program
shall be indefeasible and imprescriptible after one (1) year from its registration with the Office of the
Registry of Deeds, subject to the conditions, limitations and qualifications of this Act, the property
registration decree, and other pertinent laws. The emancipation patents or the certificates of land
ownership award being titles brought under the operation of the torrens system, are conferred with
the same indefeasibility and security afforded to all titles under the said system, as provided for by
Presidential Decree No. 1529, as amended by Republic Act No. 6732.

"Phase Three: All other private agricultural lands commencing with large landholdings and
proceeding to medium and small landholdings under the following schedule:

"(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 is concerned, 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, to own directly or collectively the
lands they till.

"The schedule of acquisition and redistribution of all agricultural lands covered by this program
shall be made in accordance with the above order o f priority, which shall be provided in the
implementing rules to be prepared by the PARC, taking into consideration the 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 the earliest practicable time; the
enhancement of agricultural productivity; and the availability of funds and resources to implement
and support the program: Provided, That the PARC shall design and conduct seminars, symposia,
information campaigns, and other similar programs for farmers who are not organized or not
covered by any landholdings. Completion by these farmers of the aforementioned seminars,
symposia, and other similar programs shall be encouraged in the implementation of this Act
particularly the provisions of this Section.

"SEC. 22-A. Order of Priority. - A landholding of a landowner shall be distributed first to qualified
beneficiaries under Section 22, subparagraphs (a) and (b) of that same landholding up to a
maximum of three (3) hectares each. Only when these beneficiaries have all received three (3)
hectares each, shall the remaining portion of the landholding, if any, be distributed to other
beneficiaries under Section 22, subparagraphs (c), (d), (e), (f), and (g)."

Section 9. Section 24 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"It is the ministerial duty of the Registry of Deeds to register the title of the land in the name of the
Republic of the Philippines, after the Land Bank of the Philippines (LBP) has certified that the
necessary deposit in the name of the landowner constituting full payment in cash or in bond with
due notice to the landowner and the registration of the certificate of land ownership award issued to
the beneficiaries, and to cancel previous titles pertaining thereto.

"Identified and qualified agrarian reform beneficiaries, based on Section 22 of Republic Act No.
6657, as, amended, shall have usufructuary rights over the awarded land as soon as the DAR
takes possession of such land, and such right shall not be diminished even pending the awarding
of the emancipation patent or the certificate of land ownership award.

"All cases involving the cancellation of registered emancipation patents, certificates of land
ownership award, and other titles issued under any agrarian reform program are within the
exclusive and original jurisdiction of the Secretary of the DAR."

Section 10. Section 25 of Republic Act So. 6657, as amended, is hereby further amended to read as follows:

"SEC.25. Award Ceilings for Beneficiaries. - Beneficiaries shall be awarded an area not exceeding
three (3) hectares, which may cover a contiguous tract of land or several parcels of land cumulated
up to the prescribed award limits. The determination of the size of the land for distribution shall
consider crop type, ,soil type, weather patterns and other pertinent variables or factors which are
deemed critical for the success of the beneficiaries.

"For purposes of this Act, a landless beneficiary is one who owns less than three (3) hectares of
agricultural land.

"Whenever appropriate, the DAR shall encourage the agrarian reform beneficiaries to form or join
farmers' cooperatives for purposes of affiliating with existing cooperative banks in their respective
provinces or localities, as well as forming blocs of agrarian reform beneficiaries, corporations, and
partnerships and joining other farmers' collective organizations, including irrigators' associations:
Provided, That the agrarian reform beneficiaries shall be assured of corresponding shares in the
corporation, seats in the board of directors, and an equitable share in the profit.

"In general, the land awarded to a farmer- beneficiary should be in the form of an individual title,
covering one (1)contiguous tract or several parcels of land cumulated up to a maximum of three (3)
hectares.

"The beneficiaries may opt for collective ownership, such as co-workers or farmers cooperative or
some other form of collective organization and for the issuance of collective ownership titles:
Provided, That the total area that may be awarded shall not exceed the total number of co-owners
or members of the cooperative or collective organization multiplied by the award limit above
prescribed, except in meritorious cases as determined by the PARC.

"The conditions for the issuance of collective titles are as follows:

"(a) The current farm management system of the land covered by CARP will not
be appropriate for individual farming of farm parcels;

"(b) The farm labor system is specialized, where the farmworkers are organized by
functions and not by specific parcels such as spraying, weeding, packing and
other similar functions;

"(c) The potential beneficiaries are currently not farming individual parcels hut
collectively work on large contiguous areas; and

"(d) The farm consists of multiple crops being farmed in an integrated manner or
includes non- crop production areas that are necessary for the viability of farm
operations, such as packing plants, storage areas, dikes, and other similar
facilities that cannot be subdivided or assigned to individual farmers.

"For idle and abandoned lands or underdeveloped agricultural lands to be covered by CARP,
collective ownership shall be allowed only if the beneficiaries opt for it and there is a clear
development plan that would require collective farming or integrated farm operations exhibiting the
conditions described above. Otherwise, the land awarded to a farmer-beneficiary should be in the
form of a n individual title, covering one (1) contiguous tract or several parcels of land cumulated up
to a maximum of three (3) hectares.

"In case of collective ownership, title to the property shall be issued in the name of the co- owners
or the cooperative or collective organization as the case may be. If the certificates of land
ownership award are given to cooperatives then the names of the beneficiaries must also be listed
in the same certificate of land ownership award.

"With regard to existing collective certificates of land ownership award, the DAR should
immediately undertake the parcelization of said certificates of land ownership award, particularly
those that do not exhibit the conditions for collective ownership outlined above. The DAR shall
conduct a review and redocumentation of all the collective certificates of land ownership award.
The DAR shall prepare a prioritized list of certificates of land ownership award to be parcelized.
The parcelization shall commence immediately upon approval of this Act and shall not exceed a
period of three (3) years. Only those existing certificates of land ownership award that are
collectively farmed or are operated in an integrated manner shall remain as collective."

Section 11. Section 26 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 26. Payment by Beneficiaries. - Lands awarded pursuant to this Act shall be paid for by the
beneficiaries to the LBP in thirty (30) annual amortizations at six percent (6%) interest per annum.
The annual amortization shall start one (1) year from the date of the certificate of land ownership
award registration. However, if the occupancy took place after the certificate of land ownership
award registration, the amortization shall start one (1) year from actual occupancy. The payments
for the first three (3) years after the award shall be at reduced amounts as established by the
PARC: Provided, That the first five (5) annual payments may not be more than five percent (5%) of
the value of the annual gross production as established by the DAR. Should the scheduled annual
payments after the fifth (5th) year exceed ten percent (10%) of the annual gross production and the
failure to produce accordingly is not due to the beneficiary's fault, the LBP shall reduce the interest
rate and/or reduce the principal obligation to make the repayment affordable.

"The LBP shall have a lien by way of mortgage on the land awarded to the beneficiary; and this
mortgage may be foreclosed by the LBP for non-payment of an aggregate of three (3) annual
amortizations. The LBP shall advise the DAR of such proceedings and the latter shall subsequently
award the forfeited landholding to other qualified beneficiaries. A beneficiary whose land, as
provided herein, has been foreclosed shall thereafter be permanently disqualified from becoming a
beneficiary under this Act."

Section 12. Section 27 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 27. Transferability of Awarded Lands. - Lands acquired by beneficiaries under this Act or
other agrarian reform laws shall not be sold, transferred or conveyed except through hereditary
succession, or to the government, or to the LBP, or to other qualified beneficiaries through the DAR
for a period of ten (10) years: Provided, however, That the children or the spouse of the transferor
shall have a right to repurchase the land from the government or LBP within a period of two (2)
years. Due notice of the availability of the land shall be given by the LBP to the BARC of the
barangay where the land is situated. The PARCCOM, as herein provided, shall, in turn, be given
due notice thereof by the BARC.

"The title of the land awarded under the agrarian reform must indicate that it is an emancipation
patent or a certificate of land ownership award and the subsequent transfer title must also indicate
that it is an emancipation patent or a certificate of land ownership award.

"If the land has not yet been fully paid by the beneficiary, the rights to the land may be transferred
or conveyed, with prior approval of the DAR, to any heir of the beneficiary or to any other
beneficiary who, as a condition for such transfer or conveyance, shall cultivate the land
himself/herself. Failing compliance herewith, the land shall be transferred to the LBP which shall
give due notice of the availability of the land in the manner specified in the immediately preceding
paragraph.

"In the event of such transfer to the LBP, the latter shall compensate the beneficiary in one lump
sump for the amounts the latter has already paid, together with the value of improvements he/she
has made on the land."

Section 13. Section 36 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 36. Funding for Support Services. - In order to cover the expenses and cost of support
services, at least forty percent (40%) of all appropriations for agrarian reform during the five (5)
year extension period shall be immediately set aside and made available for this
purpose: Provided, That the DAR shall pursue integrated land acquisition and distribution and
support services strategy requiring a plan to be developed parallel to the land acquisition and
distribution process. The planning and implementation for land acquisition and distribution shall be
hand-in-hand with support services delivery: Provided, further, That for the next five (5) years, as
far as practicable, a minimum of two (2) Agrarian Reform Communities (ARCs) shall be established
by the DAR, in coordination with the local government units, non-governmental organizations,
'community-based cooperatives and people's organizations in each legislative district with a
predominant agricultural population: Provided, furthermore, That the areas in which the ARCS are
to be established shall have been substantially covered under the provisions of this Act and other
agrarian or land reform laws: Provided, finally, That a complementary support services delivery
strategy for existing agrarian reform beneficiaries that are not in barangays within the ARCs shall
be adopted by the DAR.

"For this purpose, an Agrarian Reform Community is composed and managed by agrarian reform
beneficiaries who shall be willing to be organized and to undertake the integrated development of
an area and/or their organizations/ cooperatives. In each community, the DAR, together with the
agencies and organizations abovementioned, shall identify the farmers' association, cooperative or
their respective federations approved by the farmers- beneficiaries that shall take the lead in the
agricultural development of the area. In addition, the DAR, in close coordination with the
congressional oversight committee created herein, with due notice to the concerned representative
of the legislative district prior to implementation shall be authorized to package proposals and
receive grants, aids and other forms of financial assistance from any source"

Section 14. Section 37 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 37. Support Services for the Agrarian Reform Beneficiaries. - The State shall adopt the
integrated policy of support services delivery to agrarian reform beneficiaries. To this end, the DAR,
the Department of Finance, and the Bangko Sentral ng Pilipinas (BSP) shall institute reforms to
liberalize access to credit by agrarian reform beneficiaries. The PARC shall ensure that support
services for agrarian reform beneficiaries are provided, such as:

"(a) Land surveys and titling;

"(b) Socialized terms on agricultural credit facilities;

"Thirty percent (30%) of all appropriations for support services referred to in

Section 36 of Republic Act No. 6657, as amended, shall be immediately set aside
and made available for agricultural credit facilities: Provided, That one-third (1/3) of
this segregated appropriation shall be specifically allocated for subsidies to
support the initial capitalization for agricultural production to new agrarian reform
beneficiaries upon the awarding of the emancipation patent or the certificate of
land ownership award and the remaining two-thirds (2/3) shall be allocated to
provide access to socialized credit to existing agrarian reform beneficiaries,

including the leaseholders: Provided, further, the LBP and other concerned
government financial institutions, accredited savings and credit cooperatives,
financial service cooperatives and accredited cooperative banks shall provide the
delivery system for disbursement of the above financial assistance to individual
agrarian reform beneficiaries, holders of collective titles and cooperatives.

"For this purpose, all financing institutions may accept as collateral for loans the
purchase orders, marketing agreements or expected harvests: Provided, That
loans obtained shall be used in the improvement or development of the farm
holding of the agrarian reform beneficiary or the establishment of facilities which
shall enhance production or marketing of agricultural products of increase farm
income therefrom: Provided, further, That of the remaining seventy percent (70%)
for the support services, fifteen percent (15%) shall be earmarked for farm inputs
as requested by the duly accredited agrarian reform beneficiaries' organizations,
such as, but not limited to: (1) seeds, seedlings and/or planting materials; (2)
organic fertilizers; (3) pesticides; (4)herbicides; and (5) farm animals,
implements/'machineries; and five percent (5%) for seminars, trainings and the like
to help empower agrarian reform beneficiaries.

"(c) Extension services by way of planting, cropping, production and post-harvest

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

"(d) Infrastructure such as, but not limited to, access trails, mini-dams, public
utilities, marketing and storage facilities;

"(e) Research, production and use of organic fertilizers and other local substances
necessary in farming and cultivation; and

"(f) Direct and active DAR assistance in the education and organization of actual
and potential agrarian reform beneficiaries, at the barangay, municipal, city,
provincial, and national levels, towards helping them understand their rights and
responsibilities as owner-cultivators developing farm- related trust relationships
among themselves and their neighbors, and increasing farm production and
profitability with the ultimate end of empowering them to chart their own destiny.
The representatives of the agrarian reform beneficiaries to the PARC shall be
chosen from the 'nominees of the duly accredited agrarian reform beneficiaries'
organizations, or in its absence, from organizations of actual and potential agrarian
reform beneficiaries as forwarded to and processed by the PARC EXCOM.

"The PARC shall formulate policies to ensure that support services for agrarian reform beneficiaries
shall be provided at all stages of the program implementation with the concurrence of the
concerned agrarian reform beneficiaries.

"The PARC shall likewise adopt, implement, and monitor policies and programs to ensure the
fundamental equality of women and men in the agrarian reform program as well as respect for the
human rights, social protection, and decent working conditions of both paid and unpaid men and
women farmer-beneficiaries.

"The Bagong Kilusang Kabuhayan sa Kaunlaran (BKKK) Secretariat shall be transferred and
attached t o the LBP, for its supervision including all its applicable and existing funds, personnel,
properties, equipment and records.

"Misuse or diversion of the financial and support services herein provided shall result in sanctions
against the beneficiary guilty thereof, including the forfeiture of the land transferred to him/her or
lesser sanctions as may be provided by the PARC, without prejudice to criminal prosecution."

Section 15. There shall be incorporated after Section 37 of Republic Act No. 6657, as amended, a new section to
read as follows:

"SEC. 37-A. Equal Support Services for Rural Women. - Support services shall be extended
equally to women and men agrarian reform beneficiaries.

"The PARC shall ensure that these support services, as provided for in this Act, integrate the
specific needs and well-being of women farmer- beneficiaries taking into account the specific
requirements of female family members of farmer- beneficiaries.

"The PARC shall also ensure that rural women will be able to participate in all community activities.
To this effect, rural women are entitled to self-organization in order to obtain equal access to
economic opportunities and to have access to agricultural credit and loans, marketing facilities and
technology, and other support services, and equal treatment in land reform and resettlement
schemes.

"The DAR shall establish and maintain a women's desk, which will be primarily responsible for
formulating and implementing programs and activities related to the protection and promotion of
women's rights, as well as providing an avenue where women can register their complaints and
grievances principally related t o their rural activities."

Section 16. Section 38 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 38. Support Services for Landowners. - The PARC, with the assistance of such other
government agencies and instrumentalities as it may direct, shall provide landowners affected by
the CARP and prior agrarian reform programs with the following services:

"(a) Investment information, financial and counseling assistance, particularly

investment information on government-owned and/or -controlled corporations and
disposable assets of the government in pursuit of national industrialization and
economic independence:

"(b) Facilities, programs and schemes for the conversion or exchange of bonds
issued for payment of the lands acquired with stocks and bonds issued by the
National Government, the BSP and other government institutions and
instrumentalities;

"(c) Marketing of agrarian reform bonds, as well as promoting the marketability of

said bonds in traditional and non-traditional financial markets and stock
exchanges: and/or

"(d) Other services designed t o utilize productively the proceeds of the sale of
such lands for rural industrialization.

"A landowner who invests in rural-based industries shall be entitled to the incentives granted to a
registered enterprise engaged in a pioneer or preferred area of investment as provided for in the
Omnibus Investment Code of 1987,or to such other incentives as the PARC, the LBP, or other
government financial institutions shall provide.

"The LBP shall redeem a landowner's agrarian reform bonds at face value as an incentive:
Provided, That at least fifty percent (50%) of the proceeds thereof shall be invested in a Board of
Investments (BOI)-registered company or in any agri-business or agro-industrial enterprise in the
region where the CARP-covered landholding is located. An additional incentive of two percent (2%)
in cash shall be paid to a landowner who maintains his/her enterprise as a going concern for five
(5) years or keeps his/her investments in a BOI- registered firm for the same period: Provided,
further, That the rights of the agrarian reform beneficiaries are not, in any way, prejudiced or
impaired thereby.

"The DAR, the LBP and the Department of Trade and Industry shall jointly formulate the program to
carry out these provisions under the supervision of the PARC: Provided, That in no case shall the
landowners' sex, economic, religious, social, cultural and political attributes exclude them from
accessing these support services."

Section 17. Section 41 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 41. The Presidential Agrarian Reform Council. - The Presidential Agrarian Reform Council
(PARC) shall be composed of the President of the Philippines as Chairperson, the Secretary of
Agrarian Reform as Vice-Chairperson and the following as members: Secretaries of the
Departments of Agriculture; Environment and Natural Resources; Budget and Management;
Interior and Local Government; Public Works and Highways; Trade and Industry; Finance; and
Labor and Employment; Director-General of the National Economic and Development Authority;
President, Land Bank of the Philippines; Administrator, National Irrigation Administration;
Administrator, Land Registration Authority; and six (6) representatives of affected landowners to
represent Luzon, Visayas and Mindanao; six (6) representatives of agrarian reform beneficiaries,
two (2) each from Luzon, Visayas and Mindanao: Provided, That at least one (1) of them shall be
from the indigenous peoples: Provided, further, That at least one (1)of them shall come from a duly
recognized national organization of rural women or a national organization of agrarian reform
beneficiaries with a substantial number of women members: Provided, finally, That at least twenty
percent (20%) of the members of the PARC shall be women but in no case shall they be less than
two (Z)."

Section 18. Section 50 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 50. Quasi-Judicial Powers of the DAR. - The DAR is hereby vested with primary jurisdiction
to determine and adjudicate agrarian reform matters and shall have exclusive original jurisdiction
over all matters involving the implementation of agrarian reform, except those falling under the
exclusive jurisdiction of the Department of Agriculture (DA) and the DENR.

"It shall not be bound by technical rules of procedure and evidence but shall proceed to hear and
decide all cases, disputes or controversies in a most expeditious manner, employing all reasonable
means to ascertain the facts of every case in accordance with justice and equity and the merits of
the case. Toward this end, it shall adopt a uniform rule of procedure to achieve a just, expeditious
and inexpensive determination of every action or proceeding before it.

"It shall have the power to summon witnesses, administer oaths, take testimony, require
submission of reports, compel the production of books and documents and answers to
interrogatories and issuesubpoena, and subpoena duces tecum and to enforce its writs through
sheriffs or other duly deputized officers. It shall likewise have the power to punish direct and
indirect contempts in the same manner and subject to the same penalties as provided in the Rules
of Court.

"Responsible farmer leaders shall be allowed to represent themselves, their fellow farmers, or their
organizations in any proceedings before the DAR Provided, however, That when there are two or

more representatives for any individual or group, the representatives should choose only one
among themselves to represent such party or group before any DAB proceedings.

"Notwithstanding an appeal to the Court of Appeals, the decision of the DAR shall be immediately
executory except a decision or a portion thereof involving solely the issue of just compensation."

Section 19. Section 50 of Republic Act No. 6657, as amended, is hereby further amended by adding Section 50-A
to read as follows:

"SEC. 50-A. Exclusive Jurisdiction on Agrarian Dispute. - No court or prosecutor's office shall take
cognizance of cases pertaining to the implementation of the CARP except those provided under
Section 57 of Republic Act No. 6657, as amended. If there is an allegation from any of the parties
that the case is agrarian in nature and one of the parties is a farmer, farmworker, or tenant, the
case shall be automatically referred by the judge or the prosecutor to the DAR which shall
determine and certify within fifteen (15) days from referral whether an agrarian dispute exists:
Provided, That from the determination of the DAR, an aggrieved party shall have judicial recourse.
In cases referred by the municipal trial court and the prosecutor's office, the appeal shall be with
the proper regional trial court, and in cases referred by the regional trial court, the appeal shall be
to the Court of Appeals.

"In cases where regular courts or quasi-judicial bodies have competent jurisdiction, agrarian reform
beneficiaries or identified beneficiaries and/or their associations shall have legal standing and
interest to intervene concerning their individual or collective rights and/or interests under the CARP.

"The fact of non-registration of such associations with the Securities and Exchange Commission, or
Cooperative Development Authority, or any concerned government agency shall not be used
against them to deny the existence of their legal standing and interest in a case filed before such
courts and quasi-judicial bodies."

Section 20. Section 55 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 55. No Restraining Order or Preliminary Injunction. -Except for the Supreme Court, no court
in the Philippines shall have jurisdiction to issue any restraining order or writ of preliminary
injunction against the PARC, the DAR, or any of its duly authorized or designated agencies in any
case, dispute or controversy arising from, necessary to, or in connection with the application,
implementation, enforcement, or interpretation of this Act and other pertinent laws on agrarian
reform."

Section 21. Section 63 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 63. Funding Source. - The amount needed to further implement the CARP as provided in
this Act, until June 30, 2014, upon expiration of funding under Republic Act No. 8532 and other
pertinent laws, shall be funded from the Agrarian Reform Fund and other funding sources in the
amount of at least One hundred fifty billion pesos (P150,000,000,000.00).

"Additional amounts are hereby authorized to be appropriated as and when needed to augment the
Agrarian Reform Fund in order to fully implement the provisions of this Act during the five (5)-year
extension period.

"Sources of funding or appropriations shall include the following:

"All funds appropriated to implement the provisions of this Act shall be considered continuing
appropriations during the period of its implementation: Provided, That if the need arises, specific
amounts for bond redemptions, interest payments and other existing obligations arising from the
implementation of the program shall be included in the annual General Appropriations
Act: Provided, further, That all just compensation payments to landowners, including execution of
judgments therefore, shall only be sourced from the Agrarian Reform Fund: Provided, however,
That just compensation payments that cannot be covered within the approved annual budget of the
program shall be chargeable against the debt service program of the national government, or any
unprogrammed item in the General Appropriations Act:Provided, finally, That after the completion of
the land acquisition and distribution component of the CARP, the yearly appropriation shall be
allocated fully to support services, agrarian justice delivery and operational requirements of the
DAR and the other CARP implementing agencies."

Section 22. Section 65 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 65. Conversion of Lands. - After the lapse of five (5) years from its award, when the land
ceases to be economically feasible and sound for agricultural purposes, or the locality has become
urbanized and the land will have a greater economic value for residential, commercial or industrial
purposes, the DAR, upon application of the beneficiary or the landowner with respect only to
his/her retained area which is tenanted, with due notice to the affected parties, and subject to
existing laws, may authorize the reclassification or conversion of the land and its
disposition: Provided, That if the applicant is a beneficiary under agrarian laws and the land sought
to be converted is the land awarded to him/her or any portion thereof, the applicant, after the
conversion is granted, shall invest at least ten percent (10%)of the proceeds coming from the
conversion in government securities: Provided, further, That the applicant upon conversion shall
fully pay the price of the land: Provided, furthermore, That irrigated and irrigable lands, shall not be
subject to conversion: Provided, finally, That the National Irrigation Administration shall submit a
consolidated data on the location nationwide of all irrigable lands within one (1)year from the
effectivity of this Act.

"Failure to implement the conversion plan within five (5) years from the approval of such
conversion plan or any violation of the conditions of the conversion order due to the fault of the
applicant shall cause the land to automatically be covered by CARP."

Section 23. Section 68 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 68. Immunity of Government Agencies from Undue Interference. - In cases falling within their
jurisdiction, no injunction, restraining order, prohibition or mandamus shall be issued by the
regional trial courts, municipal trial courts, municipal circuit trial courts, and metropolitan trial courts
against the DAR, the DA, the DENR, and the Department of Justice in their implementation of the
program."

Section 24. Section 73 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 73. Prohibited Acts and Omissions. - The following are prohibited:

"(a) The ownership or possession, for the purpose of circumventing the provisions
of this Act, of agricultural lands in excess of the total retention limits or award
ceilings by any person, natural or juridical, except those under collective
ownership by farmer-beneficiaries;

"(a) Proceeds of the sales of the Privatization and Management Office (PMO);

"(b) The forcible entry or illegal detainer by persons who are not qualified
beneficiaries under this Act to avail themselves of the rights and benefits of the
Agrarian Reform Program:

"e)All receipts from assets recovered and from sales of ill-gotten wealth recovered
through the PCGG excluding the amount appropriated for compensation to victims
of human rights violations under the applicable law;

"(c) Any conversion by , any landowner of his/her agricultural' land into any nonagricultural use with intent to avoid the application of this Act to his/her
landholdings and to dispossess his/her bonafide tenant farmers:

"(c) Proceeds of the disposition and development of the properties of the

Government in foreign countries, for the specific purposes of financing production
credits, infrastructure and other support services required by this Act;

"(d) The malicious and willful prevention or obstruction by any person, association
or entity of the implementation of the CARP;

"(d) All income and, collections of whatever form and nature arising from the
agrarian reform operations, projects and programs of the DAR and other CARP
implementing agencies;

"(e) Portion of amounts accruing to the Philippines from all sources of official
foreign. aid grants and concessional financing from all countries, to be used for the
specific purposes of financing productions, credits, infrastructures, and other
support services required by this Act:

"(f) Yearly appropriations of no less than Five billion pesos (P5,000,000,000.00)

from the General Appropriations Act;

"(g) Gratuitous financial assistance from legitimate sources; and

"(h) Other government funds not otherwise appropriated.

"(e) The sale, transfer, conveyance or change of the nature of lands outside of
urban centers and city limits either in whole or in part after the effectivity of this
Act, except after final completion of the appropriate conversion under Section 65
of Republic Act No. 6657, as amended. The date of the registration of the deed of
conveyance in the Register of Deeds with respect to titled lands and the date of
the issuance of the tax declaration to the transferee of the property with respect to
unregistered lands, as the case may be, shall be conclusive for the purpose of this
Act;

"(f) The sale, transfer or conveyance by a beneficiary of the right to use or any
other usufructuary right over the land he/she acquired by virtue of being a
beneficiary, in order to circumvent the provisions of this Act;

"(g) The unjustified, willful, and malicious act by a responsible officer or officers of
the government through the following:

"(1) The denial of notice and/or reply to landowners;

"(2) The deprivation of retention rights;

(a) Prescribe and adopt guidelines which shall govern its work;

"(3) The undue or inordinate delay in the preparation of claim

folders; or

(b) Hold hearings and consultations, receive testimonies and reports pertinent to its specified
concerns;

"(4) Any undue delay, refusal or failure in the payment of just

compensation;

(c) Secure from any department, bureau, office or instrumentality of the government such
assistance as may be needed, including technical information, preparation and production of
reports and submission of recommendations or plans as it may require, particularly a yearly report
of the record or performance of each agrarian reform beneficiary as provided under Section 22 of
Republic Act No. 6657, as amended;

"(h) The undue delay or unjustified failure of the DAR, the LBP, the PARC, the
PARCCOM, and any concerned government agency or any government official or
employee to submit the required report, data and/or other official document
involving the implementation of the provisions of this Act, as required by the
parties or the government, including the House of Representatives and the Senate
of the Philippines as well as their respective committees, and the congressional
oversight committee created herein;

"(i) The undue delay in the compliance with the obligation to certify or attest and/or
falsification of the certification or attestation as required under Section 7 of
Republic Act No. 6657, as amended; and

"(j) Any other culpable neglect or willful violations of the provisions of this Act.

"In the case of government officials and employees, a conviction under this Act is without prejudice
to any civil case and/or appropriate administrative proceedings under civil service law, rules and
regulations. "Any person convicted under this Act shall not be entitled to any benefit provided for in
any agrarian reform law or program."

(d) Secure from the DAR or the LBP information on the amount of just compensation determined to
be paid or which has been paid to any landowner;

(e) Secure from the DAR or the LBP quarterly reports on the disbursement of funds for the agrarian
reform program;

(f) Oversee and monitor, in such a manner as it may deem necessary, the actual implementation of
the program and projects by the DAR;

(g) Summon by subpoena any public or private citizen to testify before it, or require by subpoena
duces tecum to produce before it such records, reports, or other documents as may be necessary
in the performance of its functions;

(h) Engage the services of resource persons from the public and private sectors as well as civil
society including the various agrarian reform groups or organizations in the different regions of the
country as may be needed;

Section 25. Section 74 of Republic Act No. 6657, as amended, is hereby further amended to read as follows:

"SEC. 74. Penalties. - Any person who knowingly or willfully violates the provisions of this Act shall
be punished by imprisonment of not less than one (1) month to not more than three (3) years or a
fine of not less than One thousand pesos (P1,000.00) and not more than Fifteen thousand pesos
(P15,000.00), or both, at the discretion of the court: Provided, That the following corresponding
penalties shall be imposed for the specific violations hereunder:

"(a) Imprisonment of three (3) years and one (1) day to six (6) years or a fine of not
less than Fifty thousand pesos (P50,000.00)and not more than One hundred fifty
thousand pesos (P150,000.00), or both, at the discretion of the court upon any
person who violates Section 73, subparagraphs (a), (b), (f), (g), and (h) of
Republic Act No. 6657, as amended; and

"(b) Imprisonment of six (6) years and one (1) day to twelve (12) years or a fine of
not less than Two hundred thousand pesos (P200,000.00) and not more than One
million pesos (P1,000,000.00), or both, at the discretion of the court upon any
person who violates Section 73, subparagraphs (c), (d), (e), and (i) of Republic Act
No. 6657, as amended.

"If the offender is a corporation or association, the officer responsible therefor shall be criminally
liable."

Section 26. Congressional Oversight Committee. - A Congressional Oversight Committee on Agrarian Reform
(COCAR) is hereby created to oversee and monitor the implementation of this Act. It shall be composed of the
Chairpersons of the Committee on Agrarian Reform of both Houses of Congress, three (3) Members of the House
of Representatives, and three (3) Members of the Senate of the Philippines, to be designated respectively by the
Speaker of the House of Representatives and the President of the Senate of the Philippines.

The Chairpersons of the Committees on Agrarian Reform of the House of Representatives and of the Senate of the
Philippines shall be the Chairpersons of the COCAR. The Members shall receive no compensation; however,
traveling and other necessary expenses shall be allowed.

In order to carry out the objectives of this Act, the COCAR shall be provided with the necessary appropriations for
its operation. An initial amount of Twenty-five million pesos (P25,000,000.00) is hereby appropriated for the COCAR
for the first year of its operation and the same amount shall be appropriated every year thereafter.

The term of the COCAR shall end six (6) months after the expiration of the extended period of five (5) years.

Section 27. Powers and Functions of the COCAR. - The COCAR shall have the following powers and functions:

(i) Approve the budget for the work of the Committee and all disbursements therefrom, including
compensation of all personnel;

(j) Organize its staff and hire and appoint such employees and personnel whether temporary,
contractual or on constancy subject to applicable rules; and

(k) Exercise all the powers necessary and incidental to attain the purposes for which it is created.

Section 28. Periodic Reports. - The COCAR shall submit to the Speaker of the House of Representatives and to
the President of the Senate of the Philippines periodic reports on its findings and recommendations on actions to be
undertaken by both Houses of Congress, the DAR, and the PARC.

Section 29. Access to Information. - Notwithstanding the provisions of Republic Act No. 1405 and other pertinent
laws, information on the amount of just compensation paid to any landowner under Republic Act No. 6657, as
amended, and other agrarian reform laws shall be deemed public information.

Section 30. Resolution of Case. - Any case and/or proceeding involving the implementation of the provisions of
Republic Act No. 6657, as amended, which may remain pending on June 30, 2014 shall be allowed to proceed to its
finality and be executed even beyond such date.

Section 31. Implementing Rules and Regulations. - The PARC and the DAR shall provide the necessary
implementing rules and regulations within thirty (30) days upon the approval of this Act. Such rules and regulations
shall take effect on July 1, 2009 and it shall be published in at least two (2) newspapers of general circulation.

Section 32. Repealing Clause. - Section 53 of Republic Act No. 3844, otherwise known as the Agricultural Land
Reform Code, is hereby repealed and all other laws, decrees, executive orders, issuances, rules and regulations, or
parts thereof inconsistent with this Act are hereby likewise repealed or amended accordingly.

Section 33. Separability Clause. - If, for any reason, any section or provision of this Act is declared
unconstitutional or invalid, the other sections or provisions not affected thereby shall remain in full force and effect.

Section 34. Effectivity Clause. - This Act shall take effect on July 1,2009 and it shall be published in at least two
(2) newspapers of general circulation.