RA 1199 Agricultural Tenancy Act
RA 1199 Agricultural Tenancy Act
RA 1199 Agricultural Tenancy Act
PART I
GENERAL PROVISIONS
SECTION 1. Title. - This Act shall be known as the "Agricultural Tenancy Act of the
Philippines."
Share tenancy exists whenever two persons agree on a joint undertaking for agricultural
production wherein one party furnishes the land and the other his labor, with either or
both contributing any one or several of the items of production, the tenant cultivating the
land personally with the aid of labor available from members of his immediate farm
household, and the produce thereof to be divided between the landholder and the
tenant in proportion to their respective contributions.
Leasehold tenancy exists when a person who, either personally or with the aid of labor
available from members of his immediate farm household, undertakes to cultivate a
piece of agricultural land susceptible of cultivation by a single person together with
members of his immediate farm household, belonging to or legally possessed by,
another in consideration of a price certain or ascertainable to be paid by the person
cultivating the land either in percentage of the production or in a fixed amount in money,
or in both.
(b) A landholder shall mean a person, natural or juridical, who, either as owner,
lessee, usufructuary, or legal possessor, lets or grants to another the use or
cultivation of his land for a consideration either in shares under the share tenancy
system, or a price certain or ascertainable under the leasehold tenancy system.
(c) Agricultural year is the period of time necessary for the raising of seasonal
agricultural products, including the preparation of the land, and the sowing,
planting and harvesting of the crop: Provided, however, That in the case of
coconuts, citrus, coffee, ramie, and other crops where more than one harvest is
obtained from one planting, the words "agricultural year" shall mean the period of
time from the preparation of land to the first harvest and thereafter from harvest
to harvest. In both cases, the period of time may be shorter or longer than a
calendar year.
(e) Work animals include animals ordinarily employed in a farm enterprise. The
words include carabaos, horses, bullocks, etc.
(f) Pulling of the seedlings is a phase of farm work in which seedlings are
uprooted from the seed beds immediately before transplanting.
(g) Final harrowing in the last stage in pulverizing the soil into fine particles in
readying the field for the transplanting of the seedlings.
(i) Harvesting shall mean the gathering of the fruits or produce of a crop other
than rice.
(j) Piling into small stacks used as a term in rice share tenancy shall mean the
piling into several small stacks within the tenant's holdings of reaped and bundled
stalks containing the grain, preparatory to their transportation to the place
designated for their threshing.
(k) Piling into big stacks used as a term in rice share tenancy shall mean the
piling into one huge stack of the several small stacks of reaped and bundled
stalks containing grain, which constitute the entire harvest of the tenant from his
holdings, preparatory to threshing.
(l) Proven farm practices include those sound farming practices which have
attained general acceptance through usage or are officially recommended by the
Department of Agriculture and Natural Resources.
(n) Immediately after as used in this Act shall be inclusive of the last day of
harvesting, threshing or processing and the next five days thereafter.
(o) Immediate farm household includes the members of the family of the tenant,
and such other person or persons, whether related to the tenant or not, who are
independent upon him for support and who usually help him operate the farm
enterprise.
(p) Incapacity means any cause or circumstances which prevents the tenant from
fulfilling his contractual obligations and those imposed by this Act.
(q) Inspect means to examine and observe. However, such examinations and
observations shall not include any acts of intimidation or coercion.
(r) Auxiliary crop is any product raised other than the crop to which the cultivation
of the land is principally devoted; and excluding the produce of the lot referred to
in Section twenty-six.
Section 10. Contracts; Nature and Continuity of Conditions. - The terms and
conditions of tenancy contracts, as stipulated by the parties or as provided by law, shall
be understood to continue until modified by the parties. Modifications of the terms and
conditions of contracts shall not prejudice the right of the tenant to the security of his
tenure on the land as determined in Section six, seven, and forty-nine.
Section 11. Freedom to Contract in General. - The landholder and the tenant shall be
free to enter into any or all kinds of tenancy contract, as long as they are not contrary to
law, morals or public policy. Except in case of fraud, error, force, intimidation or undue
influence, when such contract is reduced to writing and registered as hereinafter
provided, the latter shall be conclusive evidence of what has been agreed upon
between the contracting parties, if not denounced or impugned within thirty days after its
registration.
A. In Share Tenancy
(a) If the tenant is to receive less than the corresponding share for the different
contributions be made to the production of the farm as hereinafter provided.
(b) If it is stipulated that the tenant or any member or his immediate farm
household shall without compensation perform any work or render any service
not connected with the tenant's duties and obligations provided under this Act.
B. In Leasehold Tenancy
(a) If the tenant-lessee is to pay to the landholder, lessor, as a consideration for
the use of the land, an amount in excess of that hereinafter provided for the kind
and class of land involved.
The form of contract shall be uniform and shall be prepared and furnished by the court.
The contracting parties shall acknowledge the execution of the contracting before the
municipal treasurer or justice of the peace or the mayor of the municipality where the
land is situated. No fees or stamps of any kind shall be paid or required.
When one of the parties is unable to read, in case of doubt the burden of proof to show
that he understood the terms of the contract shall rest upon the other party who is able
to read.
Section 13. Registry of Tenancy Contracts. - For the purposes of this Act, the
municipal treasurer of the municipality wherein the land which is the subject-matter of a
tenancy contract is situated shall keep a record of all such contracts entered into within
his jurisdiction, to be known as "Registry of Tenancy Contracts." He shall keep this
registry together with a copy of each contract entered therein, and make annotations on
said registry of all subsequent acts relative to each contract, such as its renewal,
novation, cancellation, etc.: Provided, That the municipal treasurer shall not charge any
fee for the registration of said contracts or of any subsequent acts relative thereto, none
of which shall be subject to the documentary stamp tax.
Section 14. Change of System. - The tenant shall have the right to change the
tenancy contract from one of share tenancy to the leasehold tenancy and vice versa
and from one crop-sharing arrangement to another of the share tenancy. If the share
tenancy contract is in writing and is duly registered, the right may be exercised at the
expiration of the period of the contract. In the absence of any written contract, the right
may be exercised at the end of the agricultural year. In both cases the changed to the
leasehold system shall be effective one agricultural year after the tenant has served
notice of his intention to change upon the landholder.
Section 17. Form of Final Accounting. - The final accounting between landholder and
tenant at the end of each agricultural year shall be effected within ten days after the
threshing in case of rice and within the same period of time after the harvest or
gathering of the fruits in the case of crops. In case of crops which have to be said in
processed form, the final accounting shall be within five days after the sale is
consummated and the sales receipt shall be exhibited to the tenant.
In the absence of a written accounting in accordance with the preceding paragraph, the
tenant may, within three years from the date of the threshing of the crop in question,
petition the Court to compel the landholder to render an accounting of the same in
accordance with this section.
Section 18. Settlement of Debts. - Once the accounting is made, any amount of
money which the landholder may have advanced to the tenant for expenses of
cultivation, harvesting or gathering of the crop or for his own private use, as well as any
amount of grain or agricultural products advanced for his subsistence and that of his
family, shall be paid by the tenant out of his share either in grain or in money, at the
option of the latter; Provided, That such grain or agricultural products shall be appraised
in money according to their current market value at the place where the land is located
at the time of their delivery to the tenant: Provided, further, That in case his share is not
sufficient, his outstanding debt shall be reduced to money and shall bear an interest of
not more than ten per cent per annum: And provided, finally, That the remaining debts
of the tenant once converted into money shall not again be converted into kind. Said
outstanding debt money may, however, be paid in money or in agricultural products
appraised at the local current market price at the time of payment.
Section 19. Exemption from Lien and/or Attachment. - Twenty-five per centum of the
tenant's share of the produce of the land in share tenancy, or of the entire produce in
leasehold tenancy, one work animal and one of each kind of farm implement belonging
to the tenant, provided that the value of such work animal and implements do not
exceed five hundred pesos, shall be exempt from lien and attachment.
Section 20. Use of Official Weights and Measures. - In all transactions entered into
between the landholder and the tenant concerning agricultural products the official
weights and measures of the Government shall be used.
PART II
(2) The tenant shall, aside from his labor, have the right to provide any of the
contributions for production whenever he can do so adequately and on time.
(3) The tenant's dwelling shall not, without his consent, be removed from the lot
assigned to him by the landholder, unless there is a severance of the tenancy
relationship between them as provided under Section nine, or unless the tenant
is ejected for cause, and only after the expiration of forty-five days following such
severance of relationship or dismissal for cause.
(4) The tenant shall have the right to be indemnified for his labor and expenses in
the cultivation, planting, or harvesting and other incidental expenses for the
improvement of the crop raised in case he is dispossessed of his holdings,
whether such dismissal is for a just cause and not, provided the crop still exists at
the time of the dispossession.
Section 23. Obligations for the tenant. - It shall be the obligation of the tenant:
(1) To cultivate and take care of the farm, the growing crop and other
improvements entrusted to him as a good father of a family, by doing all the work
necessary in accordance with proven farming practices.
(2) To inform the landholder at once of any trespass committed by a third person
upon the farm.
(3) To take reasonable care of the work animals and farm implements used in the
point undertaking. He shall not use the work animals and farm implements
entrusted to him by the landholder for purposes other than those intended, or
allowed their use by other persons without the knowledge and consent of the
landholder.
The tenant shall not abandon or surrender his holdings and leave the farm and growing
crop and other improvements unattended during the watch season, except for just and
reasonable cause. In case of such unjustified abandonment or surrender, any or all of
his expected share in the crop may, in the discretion of the court, be forfeited in favor of
the landholder to the extent of the damage caused thereby.
Any of the following shall be considered just and reasonable cause for the tenant to
terminate the tenancy relationship;
(a) Cruel, inhuman or offensive treatment on the part of the landholder of his
representative toward the tenant or any member of his immediate farm
household.
(b) Non-compliance on the part of the landholder with any of the obligations
imposed upon him by the provisions of this Act or by the contract.
(c) If the landholder or his representative compels the tenant or any member of
his immediate farm household to do any work or render any service not in any
way connected with his farm work, or even without compulsion if no
compensation is paid.
(1) It shall be unlawful for the tenant, whenever the area of his holdings is five
hectares or more, or is sufficient size to make him and the members of his
immediate farm household fully occupied in its cultivation, to contract to work at
the same time on two or more separate holdings belonging to different
landholders under any system of tenancy, without the knowledge and consent of
the land-holder with whom he first entered into tenancy relationship.
(3) Subject to provisions of the next preceding paragraph, land entrusted for
cultivation to a leasehold tenant shall not be sub-let nor shall the lease be
assigned by the tenant to another person, except with the written consent of the
lessor.
(1) The landholder shall have the right to choose the kind of crop and the seeds
with the tenant shall plant in his holdings: Provided, however, That if the tenant
should subject, the court shall settle the conflict, according to the best interest of
both parties.
(2) The landholder shall have the right to require the use of fertilizer of the kind or
kinds shown by proven farm practices to be adapted to the requirements of the
land.
(3) The landholder shall have the right to inspect and observe the extent of
compliance on the part of the tenant with the terms and conditions of their
contract and the provisions of this Act.
(4) In cases where the crop has to be sold in processed form before division and
the tenant has no representative, the landholder, shall have the right to deal with
millers or processors in representation of the tenant.
(a) The landholder shall furnish the tenant an area of not less than one thousand
square meters where the latter may construct his dwelling, raise vegetables,
poultry, pigs, and other animals and engage in minor industries, the products of
which shall accrue to the tenant exclusively.
(b) The landholder shall keep the tenant in the peaceful possession and
cultivation of his landholdings which are the subject matter of the contract.
(1) The landholder shall not dispossess the tenant of his holdings except for any
of the causes enumerated in Section fifty, and without the cause having been
proved before, and the dispossession authorized by, the court; otherwise, he
shall, aside from the penalty of fine and/or imprisonment provided for any
violation of this Act, be liable to the tenant for damages to the extent of the
landholder's right under Section twenty-two of this Act.
(2) The landholder shall be responsible for the payment of taxes levied by the
Government upon the land which is the subject-matter of the contract and it shall
be unlawful to make the tenant bear in part of all of the same, either directly or
indirectly.
(3) The landholder shall not require the tenant to bear, directly or indirectly, any
part of the rent, "canon" or other consideration which he, the former, may be
under obligation to pay to a third person for the use of the land.
Section 28. Expenses for Seeds; Fertilizer; Pest and Weed Control Expenses.
(1) The same amount of seeds or seedlings used in the production of any crop
shall be deducted from the gross harvest and returned to the party who furnished
the same.
(2) The cost of fertilizer and expenses for pest and weed control as evidenced by
sales invoices shall be paid out of the gross harvest and returned to the party
who advanced the cost and expenses.
Section 29. Irrigation System. - The cost of the construction of an irrigation system,
including the distributory canals, shall be borne exclusively by the landholder. The cost
of maintenance and operation of the system shall, however, be borne by the landholder
and the tenant in proportion to their respective shares in the harvest.
Section 30. Auxiliary Crop. - In case the land is planted to an auxiliary crop, the tenant
shall receive eighty per centum and the landholder twenty per centum of the net
produce, provided all expenses of production are borne by the tenant.
Auxiliary crops shall, not, however, be construed to include the crops or products raised
from the garden, poultry and other industries carried on the lot specifically provided for
the tenant under Section 26(a) hereof.
SECTION 32. Share Basis. - The parties shall, on ricelands which produces a normal
average of more than forty cavanes per hectare for the three agricultural years next
preceding the current harvest, receive as shares in the gross produce, after setting
aside the same amount of palay used as seed, and after deducting the cost of fertilizer,
pest and weed control, reaping and threshing, the amount corresponding to the total
equivalent of their individual contributions, computed as follows;
Contribution Participation
1. Land 30%
2. Labor 30%
3. Farm implements 5%
4. Work Animals 5%
Final harrowing of the field immediately
5. before transplanting 5%
6. Transplanting 25%
Section 33. Share basis on Second Class Land. - On ricelands, which produce a
normal average of forty cavans or less per hectare for the three agricultural years next
preceding the current harvest, the participation for the contribution of the land shall be
twenty-five per centum and that of labor, thirty-five per centum.
Section 34. Reimbursement Not Allowed. - Contributions or shares in the contribution
to the production of the crop in the form of cash, grain or services, once shouldered or
rendered alone by one party may not be reimbursed by the other party after the phase
or phases of work required in the joint undertaking shall have been completed.
Section 35. Sharing of Expenses. - In case the landholder and the tenant agree to
share equally in the expenses of final harrowing of field and transplanting, the latter may
engage the services of persons or helpers to perform these phases of farm work,
provided the rates for each shall have been previously determined and agreed upon
between the landholder and the tenant. In case of disagreement upon said rates, the
party who undertakes to the corresponding share in the harvest, after deducting the
expenses of reaping.
Section 36. Further Rights of the Tenant. - In addition to the provision of Section
twenty-two, the tenant shall have the right to:
1. Determine when to scatter the seeds, to transplant the seedlings, and to reap
the harvest, provided they shall be in accordance with proven farm practices and
after due notice to the landholder.
2. Choose the thresher which shall thresh the harvest whenever it is the best
available in the locality and the best suited to the landholder's and tenant's needs
and provided the rate charged is equal to or lower than the rate charged by the
owner of other threshers under similar circumstances: Provided, further, That in
cases where there are more than tenant the selection of the majority of the
tenants shall prevail: Provided, finally, That if the landholder is the owner of a
thresher and is ready and willing to grant equal or lower rates under the same
conditions, the use of the landholder's thresher shall be given preference.
3. Apply appropriate pest, insect, disease and rodent control measures whenever
in his judgment such action is necessary: Provided, however, That if a tenant
fails to apply any of the above control measures after the landholder has made a
request in writing for such action, he shall be liable for any loss resulting from
such failure.
Provided, however, That in case of disagreement by the tenant in any of the foregoing
instances, the court shall determine whatever may be in the interest or both parties.
Section 38. Labor; What It Constitutes. - The tenant shall perform the following as the
labor contributed by him under Section thirty-two;
1. The preparation of the seedbed which shall include plowing, harrowing, and
watering of the seedbed, the scattering of the seeds, and the care of the
seedlings.
2. The plowing, harrowing, and watering of the area he is cultivating, except final
harrowing of the field as an item of contribution specified in Section thirty-two of
this Act.
3. The maintenance, repair and weeding of dikes, paddies, and irrigation canals
in his holdings.
9. Gathering of the small stacks and their transportation to the place where they
are to be stacked.
Section 39. Prohibition on Pre-Threshing. - It shall be unlawful for either the tenant or
the landholder, without mutual consent, to reap or thresh a portion of the crop at any
time previous to the date set for its threshing. Any violation by either party shall be
treated and penalized in accordance with this Act and/or under the general provisions of
law applicable to the act committed.
Section 40. Place of Crop Division. - The division of the crop shall be made in the
same place where the harvest has been threshed and each party shall transport his
share to his warehouse or barn, unless the contrary is stipulated by the parties.
CHAPTER III - Share Tenancy on Crops other than Rice
SECTION 41. Basis of Shares in Crops other than Rice. - The landholder and the
tenant on lands which produce crops either than rice shall be free to enter into any
contract stipulating the ratio of crop division. In the absence of a stipulation, the customs
of the place shall govern: Provided, That whether the basis of division of the crop is the
contract between the parties or the customs of the place, the share of the tenant for his
labor in the production shall not less than thirty per cent of the harvest or produce, after
deducting the expenses for harvesting and/or initial processing: Provided, further, That
in cases where the share of the tenant is, according to local practices or customs
prevailing at the time of the approval of this Act, more than the minimum herein set, the
tenant's share thus established by local practices or customs shall prevail and be
considered the minimum.
PART III
Section 43. Rights and Obligations of Tenant-Lessee. - With the creation of the
tenancy relationship arising out of the contract between the landholder-lessor and
tenant-lessee, the latter shall have the right to enter the premises of the land, and to the
adequate and peaceful enjoyment thereof. He shall have the right to work the land
according to his best judgment, provided this manner and method of cultivation and
harvest are in accordance with proven farm practices. Upon termination of the
relationship, he shall be entitled to one half of the value of the improvements made by
him, provided they are reasonable and adequate to the purposes of the lease.
The tenant-lessee shall pay the consideration stipulated in the lease contract provided it
shall not exceed the limit fixed in Section forty-six. In the absence of stipulation, the
consideration shall be that established in said Section forty-six. He shall make proper
use of the land and the improvements thereon and shall be under obligation to cultivate
it as a good father of a family, by doing all the work considered reasonable and
necessary in accordance with proven farm practices. He is likewise obliged to take
reasonable care of the work animals and farm implements that may be delivered to him
by the land-holder, in case it is agreed between the parties that the landholder-lessor
shall furnish any or all of them.
Section 44. Rights of Landholder-lessor. - The landholder-lessor or his duly
authorized representatives shall have the right to inspect the premises of the land which
is the subject of the lease for the purpose of ascertaining the tenant's compliance with
the provisions of the contract and of this Act, but in no case shall he exercise any
coercion, intimidation or violence in word or deed.
Section 45. Manner of Rental Payment. - Payment of the consideration for the use of
land may be made either in an amount certain or ascertainable in money or in produce,
or both.
(a) The consideration for the use of ricelands, shall not be more than thirty per
centum of the gross produce for first class lands and not more than twenty-five
per centum for second class lands. Classification of ricelands shall be
determined by productivity: first class lands being those which yield more than
forty cavanes per hectare and second class lands being those which yield forty
cavanes or less, the same to be computed upon the normal average harvest of
the three preceding years.
(b) The consideration for agricultural land where exist fruit trees and other useful
trees and plants, from which the whole or any portion of the produce of the said
land is taken, shall not be more than what have been specified in the preceding
section: Provided, however, That additional considerations for the employment of
said trees and useful plants, if the principal product is rice or other crops, shall be
decided and specified by negotiation between the landholder-lessor and the
tenant-lessee; Provided, further, That where the tenant-lessee, during the period
of the lease and/or in consideration thereof, plants and/or takes care of said trees
and plants, with the consent of the landholder-lessor, the tenant-lessee shall be
compensated by the latter in the manner agreed between them.
(c) The consideration for the use of sugar lands, fishponds, saltbeds and of lands
devoted to the raising of livestock shall be governed by stipulation between the
parties.
Section 47. Rental of Work Animals, etc., and Applicability of Schedules. - Upon
agreement of the parties, the tenant- lessee may make use of such work animals, farm
implements or services belonging to the landholder-lessor as are available for hire, the
consideration of which shall be based on their fair rental value.
The rates on the fair rental value for the use of work animals, farm implements and
services, belonging to the landholder-lessor shall be those provided in Schedules "A",
"B", and "C", which shall apply upon approval of this Act and shall remain in force,
unless the Secretary of Agricultural and Natural Resources revises the same in
accordance with Section fifty-two.
Section 48. Loans and Interests. - Loans, either in money or in kind, obtained by a
tenant-lessee from the landholder lessor shall be payable at the time stipulated:
Provided, however, That this shall not be construed as prejudicing the right of the
borrower to repay his obligation before the date of maturity. The loan, unless it is
otherwise stipulated, shall be payable in money at not more than eight per cent interest
per annum, computed from the date of the indebtedness was contracted up to and
including the date of payment. A note or memorandum to evidence such indebtedness
shall be executed in accordance with the provisions of Section sixteen.
PART IV
SECURITY OF TENURE
Section 50. Causes for the Dispossession of a Tenant. - Any of the following shall
be a sufficient cause for the dispossession of a tenant from his holdings:
(a) The bona fide intention of the landholder to cultivate the land himself
personally or through the employment of farm machinery and implements:
Provided, however, That should the landholder not cultivate the land himself or
should fail to employ mechanical farm implements for a period of one year after
the dispossession of the tenant, it shall be presumed that he acted in bad faith
and the land and damages for any loss incurred by him because of said
dispossession: Provided, further, That the land-holder shall, at least one year but
not more than two years prior to the date of his petition to dispossess the tenant
under this subsection, file notice with the court and shall inform the tenant in
wiring in a language or dialect known to the latter of his intention to cultivate the
land himself, either personally or through the employment of mechanical
implements, together with a certification of the Secretary of Agriculture and
Natural Resources that the land is suited for mechanization: Provided, further,
That the dispossessed tenant and the members of his immediate household shall
be preferred in the employment of necessary laborers under the new set-up.
(b) When the current tenant violates or fails to comply with any of the terms and
conditions of the contract or any of the provisions of this Act: Provided, however,
That this subsection shall not apply when the tenant has substantially complied
with the contract or with the provisions of this Act.
(c) The tenant's failure to pay the agreed rental or to deliver the landholder's
share: Provided, however, That this shall not apply when the tenant's failure is
caused by a fortuitous event or force majeure.
(d) When the tenant uses the land for a purpose other than that specified by
agreement of the parties.
(e) When a share-tenant fails to follow those proven farm practices which will
contribute towards the proper care of the land and increased agricultural
production.
(f) When the tenant through negligence permits serious injury to the land which
will impair its productive capacity.
Section 51. Burden of Proof. - The burden of proof to show the existence of a lawful
cause for the ejectment of a tenant shall rest upon the landholder.
PART V
SPECIAL PROVISIONS
2. Revise the rental rates provided for in Schedules "A", and "B", whenever such
revision is made necessary by changes in values and prices, so that the rental
rates shall conform to the standard of fair rental value as defined in Section 5(m).
Section 54. Representation by Counsel. - In all cases wherein a tenant cannot afford
to the represented by counsel, it shall be the duty of the Public Defender of the
Department of Labor to represent him, upon proper notification by the party concerned,
or the court of competent jurisdiction shall assign or appoint counsel de oficio for the
indigent tenant.
Section 55. Applicability of General Laws. - The provisions of existing laws which are
not inconsistent herewith shall apply to the contracts governed by this Act as well as to
acts or omissions by either party against each other during, and in connection with, their
relationship.
Section 56. Doubts to Be Solved in Favor of the Tenant. - In the interpretation and
enforcement of this Act and other laws as well as of the stipulations between the
landholder and the tenant, the courts and administrative officials shall solve all grave
doubts in favor of the tenant.
Section 57. Penal Provision. - Violation of any of the provisions of this Act shall be
punished with a fine not exceeding two thousand pesos or imprisonment not exceeding
one year, or both in the discretion of the Court.
Section 58. Separability of Provisions. - If for any reason, any section or provision of
this Act shall be questioned in any court, and shall be held to be unconstitutional or
invalid, no other section or provision of this Act shall be effected thereby.
Section 59. Repealing Provisions. - Public Act Numbered Four thousand fifty-four, as
amended by Republic Act Numbered Thirty-four, Commonwealth Act Numbered Fifty-
three, Commonwealth Act Numbered Four hundred sixty-one as amended by Republic
Act Numbered Forty- four, and all laws, rules and regulations inconsistent herewith are
hereby repealed.
Section 60. Effective Date. - This Act shall take effect upon its approval.
SCHEDULE "A"
The rental value of work animals and farm implements other than machinery, shall not
exceed the allowable depreciation charges plus six per cent (6%) interest per annum
computed on the market value of the said work animals and farm implements not fixed
in this Schedule shall be those prevailing in the locality where the said animals and
implements are rented.
SCHEDULE "B"
The rental value for farm machineries inclusive of tractors, tractor equipment, engines,
motors, and pumps shall not exceed the allowable depreciation equal to one-tenth
(1/10) of the current market value plus interest at six per cent (6% per annum.
SCHEDULE "C"
"Leasehold tenancy exists when a person who, either personally or with the aid of labor
available form members of his immediate farm household, undertakes to cultivate a
piece of agricultural land susceptible of cultivation by a single person together with
members of his immediate farm household, belonging to or legally possessed by,
another in consideration of a fixed amount in money or in produce or in both,"
Section 2. Subsections (c) and (r) of section five of the same Act are hereby amended
to read as follows hereinbelow; and said section five is further amended by inserting a
new subsection between subsections (c) and (d) to be known as subsection (c-1), two
new subsections between subsections (g) and (h) to be known as subsections (g-1) and
(g-2) and by adding a new subsection after subsection (r) to be known as subsection (s)
to read as follows:
"(c) Agricultural year is the period of time necessary for the arising of seasonal
agricultural products, including the preparation of the land, and the sowing,
planting harvesting and, whenever applicable, threshing of the crop: Provided,
however, That in the case of coconuts, citrus, coffee, ramie, and other crops
where more than one harvest is obtained from one planting, the words
"agricultural year" shall mean the period of time from the preparation of the land
to the first harvest and thereafter from harvest to harvest. In both cases, the
period of time may be shorter or longer than a calendar year.
"(c-1) Beginning of the agricultural year is the time the first farm operation for the
production of the principal crop is performed, such as, seed-bed preparation in
the case of rice.
"(g-2) Ratooning as the cutting of the straw close to the ground at harvesting time
after all the standing water has been drained out to allow the young tillers to
sprout out the rootstocks and develop into mature normal bearing plants in three
or four months with the aid of fertilizer, manure or compost.
"(s) Suited for mechanization shall mean that more than 60% of the tenants' labor
as provided for in this Act shall be displaced by farm machinery and that the
employment of mechanized implements will lower the cost of production."
Section 3. Section nine of the same Act is hereby amended to read as follows:
"Sec. 14. Change of System. The tenant shall have the right to change the tenancy
contract from one of share tenancy to leasehold tenancy and vice versa and from one
crop sharing arrangement to another of the share tenancy. If the share tenancy contract
is in writing and is duly registered, the right to change from one crop sharing
arrangement to another or from one tenancy system to another may be exercised at
least one month before the beginning of the next agricultural year after the expiration of
the period of the contract, the right may be exercised at least one month before the
agricultural year when the change shall be effected."
Section 5. Subsections (2) and (3) of section twenty-two of the same Act are hereby
amended to read as follows:
"(3) The tenant shall have the right to demand for a home lot suitable for dwelling
with an area of not more than 3 per cent of the area of his landholding provided
that it does not exceed one thousand square meters and that it shall be located
at a convenient and suitable place within the land of the landholder to be
designated by the later where the tenant shall construct his dwelling and may
raise vegetables, poultry, pigs and other animals and engage in minor industries,
the products of which shall accrue to the tenant exclusively. The Tenant's
dwelling shall not be removed from the lot already assigned to him by the
landholder, except as provided in section twenty-six unless there is a severance
of the tenancy relationship between them as provided under section nine, or
unless the tenant is ejected for cause, and only after the expiration of forty-five
days following such severance of relationship or dismissal for cause.
Section 6. Subsections (1) and (2) of Section twenty-five of the same Act are hereby
amended to read as follows:
"(1) The landholder shall have the right to choose the kind of crop and the seeds
which the tenant shall plant in his holdings: Provided, That if the tenant should
object, the court shall settle the conflict according to the best interest of both
parties: Provided, further, That in no case shall a tenant be ejected as a
consequence of a change in crop.
"(2) The landholder shall have the right to require the tenant to follow those
proven farm practices which have been found to contribute towards increased
agricultural production and to use fertilizer of the kind or kinds shown by proven
farm practices to be adopted to the requirements of the land: Provided, That in
case of disagreement thereto by the tenant, the court shall settle the conflict
according to the best interest of both parties."
Section 7. Subsection (a) of section twenty-six of the same Act is hereby amended to
read as follows:
(a) The landholder shall furnish the tenant with a home lot as provided in section 22
(3): Provided, That should the landholder designated another site for such home lot than
that already occupied by the tenant, the former shall bear the expenses of transferring
the existing house and improvements from the home lot already occupied by the tenant
to the site newly designated by the former: Provided, further, That if the tenant
disagrees to the transfer of the home lot, the matter shall be submitted to the court for
determination."
Section 8. Section twenty-seven of the same Act is hereby amended by inserting the
following subsections to be known as subsections (4) and (5):
"(4) The landholder shall not mortgage the share of the tenant in the crop, and
any mortgage executed by the landholder on the land and/or its crop shall not
affect the share of the tenant in such crop.
"(5) The landholder shall not discourage, directly or indirectly, the formation,
maintenance or growth of a union or organization of tenants in his landholding,
but he shall not initiate, dominate, assist or interfere in the formation or
administration of any such union or organization."
Section 9. Subsection (2) of section twenty-eight of the same Act is hereby amended to
read as follows:
"Sec. 28. Expenses for Seeds; Fertilizers; Pest and Weed Control Expenses:
(2) The cost of fertilizer and expenses for pest and disease control, as evidenced
by sales invoices and/or receipts, as well as the cost of weeding beyond the
customary practice in the locality shall be paid out of the gross harvest and
returned to the party who advanced the cost expenses. In case of disagreement
as to the cost of weeding, the court shall determine the same.
Section 10. Section thirty-one of the same Act is hereby amended to read as follows:
"Sec. 31. Cost of Fertilizer, Etc.; When to be Advanced by the Landholder. Whenever
the use of fertilizer, the application of insect, disease and rodent control measures or
weeding beyond the customary practice in the locality is directed by the landholder, he
shall advance their cost, which shall be deducted from the gross produce."
Section 11. Section thirty-two of the same Act is hereby amended to read as follows:
"Sec. 32. Share Basis. The parties shall, on ricelands which produce a normal average
of more than forty cavans per hectare for the three agricultural years next preceding the
current harvest, receive as shares in the gross produce, after setting aside the same
amount of palay used as seed, and after deducting the cost of fertilizer, pest and weed
control, irrigation fees, reaping of not more than ten per centum of the gross harvest,
threshing and, whenever applicable, broadcasting or other farm operations not listed in
this Act as contributions or labor of tenant, the amount corresponding to the total
equivalent of their individual contributions, computed as follows:
Participation
Contributions
Per cent
1. Land 30
2. Labor 30
3. Farm Implements 5
4. Work Animals 5
5. Final harrowing of the 5
field immediately
before the transplanting
6. Transplanting 25:
Provided, however, That the participation of any of the contributions enumerated above
which are not actually contributed because of the nature of the farming culture followed,
shall be divided between the landholder and tenant in the same proportion as their total
contribution to the production."
Section 12. Subsection (4) of section thirty-seven of the same Act is hereby amended
to read as follows:
"(4) The date of threshing which should not be beyond one month from the date of
stacking of the harvest into big stacks.
Section 13. Section thirty-nine of the same Act is amended to read as follows:
"Sec. 39. Prohibition on Pre-Threshing. It shall be unlawful for either the tenant or
landholder, without mutual consent, to reap or thresh a portion of the crop at any time
previous to the date set, for its threshing: Provided, That if the tenant needs food for his
family and the landholder does not or cannot furnish such and refuses to allow the
tenant to reap or thresh a portion of the crop previous to the date set for its threshing,
the tenant can reap or thresh not more than ten per cent of his net share in the last
normal harvest after giving notice thereof to the landholder or his representative. Any
violation of this section by either party shall be treated and penalized in accordance with
this Act and/or under the general provisions of law applicable to the act committed."
Section 14. Subsections (a) and (b) of section forty-six of the same Act is hereby
amended to read as follows:
"(a) The fixed consideration for the use of ricelands, shall not be more than the
equivalent of twenty-five per centum in case of first class land and twenty per
centum in case of second class land of the average gross produce after
deducting the same amount of palay used as seed and the cost of harvesting
and threshing of the past three normal harvest: Provided, That if the landholder
introduced improvements on the farm which will increase its productivity, he may
demand for an increase in the rental proportionate to the increase in production
resulting from such improvements. In case of disagreement the court shall
determine the reasonable increase in rental. Classification of ricelands shall be
determined by productivity; first class lands being those which yield more than
forty cavans per hectare and second class lands being those which yield forty
cavans or less, the same to be computed upon the normal average harvest of the
three preceding years.
"(b) The fixed consideration for agricultural land where exist fruit trees and other
useful trees, crops and plants, from which the whole or any portion of the
produce of the said land is taken, shall not be more than twenty-five per cent of
the average gross produce of the past three normal harvests: Provided, however,
That additional considerations for the enjoyment of said trees and useful plants, if
the principal product is rice or other crops, shall be decided and specified by
negotiation between the landholder-lessor and the tenant-lessee: Provided,
further, That when the tenant-lessee, during the period of the lease and/or in
consideration thereof, plants and/or takes care of said trees and plants, with the
consent of the landholder-lessor, the tenant-lessee shall be compensated by the
latter in the manner agreed between them.
Section 15. The following new subsection is added to section forty-six of the same Act:
Section 16. Section forty-nine of the same Act is hereby amended to read as follows:
It shall likewise be unlawful for any third party to dispossess the tenant of his holding
except by order of the Court. Any violation of this provision shall be penalized in
accordance with section fifty-seven of this Act and/or under the general provisions of
law applicable to the act committed."
Section 17. Subsection (a) of section fifty of the same Act. is hereby amended to read
as follows:
"Sec. 50. Causes for the Dispossession of Tenant. Any of the following and no other,
shall be sufficient cause for the dispossession of a tenant from his holdings:
(a) The bona fide intention of the landholder-owner or his relative within the first
degree by consanguinity to cultivate the land himself personally or through the
employment of farm machinery and implements: Provided, however, That should
the landholder-owner or the aforesaid relative not cultivate the land himself for at
least three years or the landholder-owner and his successor in interest should fail
to employ mechanical farm implements for a period of at least five years after
dispossession of the tenant, it shall be presumed that he acted in bad faith and
the tenant shall have the right to demand possession of the land and damages
for any loss incurred by him because of said dispossession: Provided, further,
That the landholder-owner or the aforesaid relative shall, at least one year but
not more than two years prior to the date of his petition to dispossess the tenant
under this sub-section, file notice with the court and shall inform the tenant in
writing in a language or dialect known to the latter of his intention to cultivate the
land himself, either personally or through the employment of mechanical
implements: Provided, That in the latter case, the notice to the tenant and to the
court should be accompanied by a certification of the agricultural tenancy
commission that the land is suited for mechanization and by a certification by the
manager of the national resettlement and rehabilitation administration that it will
be able to provide immediate resettlement to the tenants in case their
dispossession is authorized by the court: Provided, further, That in case any
dispossessed tenant is not willing to be resettled, his possession shall not be
enforced until the lapse of one year from the date the decision becomes
final: Provided, further, That the dispossessed tenant and the members of the
immediate household who were not resettled shall be preferred in the
employment of necessary laborers under the new set-up: Provided finally, That a
landholder may mechanize certain farm operations in a tenanted farm without
ejecting any tenant by filing a petition with the court accompanied by a
certification of the farm operations applied for will lower the cost of production
and will improve the farm culture, in which case the increase in the share of the
landholder shall be fixed by the Court in proportion to the labor of the tenant that
will be displaced by the farm machine.
xxx xxx xxx
"(e) When a share-tenant fails to follow these proven farm practices which, as
determined by the court of agrarian relations, will contribute towards the proper care of
the land and increased agricultural production in case of conflict as to whether the
margate or any other accepted scientific system is a proven farm practice for any
particular land, the conflict shall be decided by the court taking the testimony of the
proper government officials."
Section 18. The first paragraph of section fifty-two of the same Act is hereby amended
to read as follows:
"Sec. 52. Duties of the agricultural Tenancy Commission. It shall be the duty of the
Agricultural Tenancy Commission to:
Section 19. Section fifty-three of the same Act is hereby amended to read as follows:
"Sec. 53. Duties of Secretary of Justice. The Secretary of Justice, acting through a
tenancy mediation commission shall carry out a rational enforcement program, which
shall include among other things, mediation of tenancy disputes."
Section 20. Section fifty-four of the same act is hereby amended to read as follows:
"Sec. 54. Representation by Counsel. In all cases herein a tenant cannot afford to be
represented by counsel, it shall be the duty of the trial attorney of the tenancy mediation
commission to represent him, upon proper notification by the party concerned, or the
court of competent jurisdiction shall assign or appoint counsel de oficio for the indigent
tenant.
Section 21. Section fifty-seven of the same Act is hereby amended to read as follows:
"Sec. 57. Penal Provision. Violation of the provisions of subsections one and three,
section twenty-seven and of sections thirty-nine and forty-nine of this Act shall be
punished by a fine not exceeding two thousand pesos or imprisonment not exceeding
one year, or both, in the discretion of the Court. Any person who in bad faith shall
induce or cause anybody to violate the aforesaid sections of Republic Act numbered
one thousand one hundred ninety-nine shall be punished with a fine not exceeding four
thousand pesos or imprisonment not exceeding two years, or both, at the discretion of
the court.
In case of juridical persons, the manager or the person who has charge of the
management or administration of the property or, in their default, the person acting in
their stead, shall be liable under this section."
Section 22. The provisions of this Act shall be applicable to all cases pending in any
Court at the time of the approval of this Act.
Section 23. If for any reason any section of provision of this Act shall be questioned in
any Court, and shall be held to be unconstitutional or invalid, no other section or
provision of this Act shall be affected thereby.
Section 24. This Act shall take effect upon its approval.