Republic Act No.

6657 June 10, 1988 size family farms to be constituted by individual

beneficiaries and small landowners.
AN ACT INSTITUTING A COMPREHENSIVE
AGRARIAN REFORM PROGRAM TO PROMOTE The State shall protect the rights of subsistence
SOCIAL JUSTICE AND INDUSTRIALIZATION, fishermen, especially of local communities, to the
PROVIDING THE MECHANISM FOR ITS preferential use of communal marine and fishing
IMPLEMENTATION, AND FOR OTHER PURPOSES resources, both inland and offshore.t shall provide
support to such fishermen through appropriate
Be it enacted by the Senate and House of technology and research, adequate financial, production
Representatives of the Philippines in Congress and marketing assistance and other services. The State
assembled: shall also protect, develop and conserve such resources.
The protection shall extend to offshore fishing grounds of
CHAPTER I subsistence fishermen against foreign intrusion.
Preliminary Chapter Fishworkers shall receive a just share from their labor in
the utilization of marine and fishing resources.
Section 1. Title. — This Act shall be known as
the Comprehensive Agrarian Reform Law of 1988. The State shall be guided by the principles that land has
a social function and land ownership has a social
responsibility. Owners of agricultural lands have the
Section 2. Declaration of Principles and Policies. — obligation to cultivate directly or through labor
It is the policy of the State to pursue a Comprehensive administration the lands they own and thereby make the
Agrarian Reform Program (CARP). The welfare of the land productive.
landless farmers and farmworkers will receive the
highest consideration to promote social justice and to
move the nation toward sound rural development and The State shall provide incentives to landowners to
invest the proceeds of the agrarian reform program to
industrialization, and the establishment of owner
promote industrialization, employment and privatization
cultivatorship of economic-size farms as the basis of
of public sector enterprises. Financial instruments used
Philippine agriculture.
as payment for lands shall contain features that shall
enhance negotiability and acceptability in the
To this end, a more equitable distribution and ownership marketplace.
of land, with due regard to the rights of landowners to
just compensation and to the ecological needs of the
The State may lease undeveloped lands of the public
nation, shall be undertaken to provide farmers and
farmworkers with the opportunity to enhance their dignity domain to qualified entities for the development of
and improve the quality of their lives through greater capital-intensive farms, and traditional and pioneering
crops especially those for exports subject to the prior
productivity of agricultural lands.
rights of the beneficiaries under this Act.
The agrarian reform program is founded on the right of
Section 3. Definitions. — For the purpose of this Act,
farmers and regular farmworkers, who are landless, to
own directly or collectively the lands they till or, in the unless the context indicates otherwise:
case of other farm workers, to receive a just share of the
fruits thereof. To this end, the State shall encourage and (a) Agrarian Reform means redistribution of
undertake the just distribution of all agricultural lands, lands, regardless of crops or fruits produced, to
subject to the priorities and retention limits set forth in farmers and regular farmworkers who are
this Act, having taken into account ecological, landless, irrespective of tenurial arrangement, to
developmental, and equity considerations, and subject to include the totality of factors and support
the payment of just compensation. The State shall services designed to lift the economic status of
respect the right of small landowners, and shall provide the beneficiaries and all other arrangements
incentives for voluntary land-sharing. alternative to the physical redistribution of lands,
such as production or profit-sharing, labor
administration, and the distribution of shares of
The State shall recognize the right of farmers,
stocks, which will allow beneficiaries to receive a
farmworkers and landowners, as well as cooperatives
just share of the fruits of the lands they work.
and other independent farmers' organizations, to
participate in the planning, organization, and
management of the program, and shall provide support (b) Agriculture, Agricultural Enterprise or
to agriculture through appropriate technology and Agricultural Activity means the cultivation of the
research, and adequate financial production, marketing soil, planting of crops, growing of fruit trees,
and other support services. raising of livestock, poultry or fish, including the
harvesting of such farm products, and other farm
The State shall apply the principles of agrarian reform, or activities and practices performed by a farmer in
stewardship, whenever applicable, in accordance with conjunction with such farming operations done
by person whether natural or juridical.
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 (c) Agricultural Land refers to land devoted to
prior rights, homestead rights of small settlers and the agricultural activity as defined in this Act and not
rights of indigenous communities to their ancestral lands. classified as mineral, forest, residential,
commercial or industrial land.
The State may resettle landless farmers and
farmworkers in its own agricultural estates, which shall (d) Agrarian Dispute refers to any controversy
be distributed to them in the manner provided by law. relating to tenurial arrangements, whether
leasehold, tenancy, stewardship or otherwise,
over lands devoted to agriculture, including
By means of appropriate incentives, the State shall
disputes concerning farmworkers' associations
encourage the formation and maintenance of economic-
or representation of persons in negotiating,
fixing, maintaining, changing, or seeking to CHAPTER II
arrange terms or conditions of such tenurial Coverage
arrangements.
Section 4. Scope. — The Comprehensive Agrarian
It includes any controversy relating to Reform Law of 1989 shall cover, regardless of tenurial
compensation of lands acquired under this Act arrangement and commodity produced, all public and
and other terms and conditions of transfer of private agricultural lands, as provided in Proclamation
ownership from landowners to farmworkers, No. 131 and Executive Order No. 229, including other
tenants and other agrarian reform beneficiaries, lands of the public domain suitable for agriculture.
whether the disputants stand in the proximate
relation of farm operator and beneficiary, More specifically the following lands are covered by the
landowner and tenant, or lessor and lessee. Comprehensive Agrarian Reform Program:

(e) Idle or Abandoned Land refers to any (a) All alienable and disposable lands of the
agricultural land not cultivated, tilled or public domain devoted to or suitable for
developed to produce any crop nor devoted to agriculture. No reclassification of forest or
any specific economic purpose continuously for mineral lands to agricultural lands shall be
a period of three (3) years immediately prior to undertaken after the approval of this Act until
the receipt of notice of acquisition by the Congress, taking into account ecological,
government as provided under this Act, but does developmental and equity considerations, shall
not include land that has become permanently have determined by law, the specific limits of the
or regularly devoted to non-agricultural public domain.
purposes.t does not include land which has
become unproductive by reason of force (b) All lands of the public domain in excess of
majeure or any other fortuitous event, provided
the specific limits as determined by Congress in
that prior to such event, such land was
the preceding paragraph;
previously used for agricultural or other
economic purpose.
(c) All other lands owned by the Government
devoted to or suitable for agriculture; and
(f) Farmer refers to a natural person whose
primary livelihood is cultivation of land or the
production of agricultural crops, either by (d) All private lands devoted to or suitable for
himself, or primarily with the assistance of his agriculture regardless of the agricultural
immediate farm household, whether the land is products raised or that can be raised thereon.
owned by him, or by another person under a
leasehold or share tenancy agreement or Section 5. Schedule of Implementation. — The
arrangement with the owner thereof. distribution of all lands covered by this Act shall be
implemented immediately and completed within ten (10)
(g) Farmworker is a natural person who renders years from the effectivity thereof.
service for value as an employee or laborer in
an agricultural enterprise or farm regardless of Section 6. Retention Limits. — Except as otherwise
whether his compensation is paid on a daily, provided in this Act, no person may own or retain,
weekly, monthly or "pakyaw" basis. The term directly or indirectly, any public or private agricultural
includes an individual whose work has ceased land, the size of which shall vary according to factors
as a consequence of, or in connection with, a governing a viable family-size farm, such as commodity
pending agrarian dispute and who has not produced, terrain, infrastructure, and soil fertility as
obtained a substantially equivalent and regular determined by the Presidential Agrarian Reform Council
farm employment. (PARC) created hereunder, but in no case shall retention
by the landowner exceed five (5) hectares. Three (3)
(h) Regular Farmworker is a natural person who hectares may be awarded to each child of the
is employed on a permanent basis by an landowner, subject to the following qualifications: (1) that
agricultural enterprise or farm. he is at least fifteen (15) years of age; and (2) that he is
actually tilling the land or directly managing the farm:
provided, that landowners whose lands have been
(i) Seasonal Farmworker is a natural person who covered by Presidential Decree No. 27 shall be allowed
is employed on a recurrent, periodic or to keep the areas originally retained by them thereunder:
intermittent basis by an agricultural enterprise or
provided, further, that original homestead grantees or
farm, whether as a permanent or a non-
their direct compulsory heirs who still own the original
permanent laborer, such as "dumaan", "sacada",
homestead at the time of the approval of this Act shall
and the like.
retain the same areas as long as they continue to
cultivate said homestead.
(j) Other Farmworker is a farmworker who does
not fall under paragraphs (g), (h) and (i).
The right to choose the area to be retained, which shall
be compact or contiguous, shall pertain to the
(k) Cooperatives shall refer to organizations landowner: provided, however, that in case the area
composed primarily of small agricultural selected for retention by the landowner is tenanted, the
producers, farmers, farmworkers, or other tenant shall have the option to choose whether to remain
agrarian reform beneficiaries who voluntarily therein or be a beneficiary in the same or another
organize themselves for the purpose of pooling agricultural land with similar or comparable features.n
land, human, technological, financial or other case the tenant chooses to remain in the retained area,
economic resources, and operated on the he shall be considered a leaseholder and shall lose his
principle of one member, one vote. A juridical right to be a beneficiary under this Act.n case the tenant
person may be a member of a cooperative, with chooses to be a beneficiary in another agricultural land,
the same rights and duties as a natural person. he loses his right as a leaseholder to the land retained
by the landowner. The tenant must exercise this option The schedule of acquisition and redistribution of all
within a period of one (1) year from the time the agricultural lands covered by this program shall be made
landowner manifests his choice of the area for retention. in accordance with the above order of priority, which
shall be provided in the implementing rules to be
In all cases, the security of tenure of the farmers or prepared by the Presidential Agrarian Reform Council
farmworkers on the land prior to the approval of this Act (PARC), taking into consideration the following; the need
shall be respected. to distribute land to the tillers at the earliest practicable
time; the need to enhance agricultural productivity; and
Upon the effectivity of this Act, any sale, disposition, the availability of funds and resources to implement and
support the program.
lease, management, contract or transfer of possession
of private lands executed by the original landowner in
violation of the Act shall be null and void: provided, In any case, the PARC, upon recommendation by the
however, that those executed prior to this Act shall be Provincial Agrarian Reform Coordinating Committee
valid only when registered with the Register of Deeds (PARCCOM), may declare certain provinces or region as
within a period of three (3) months after the effectivity of priority land reform areas, in which the acquisition and
this Act. Thereafter, all Registers of Deeds shall inform distribution of private agricultural lands therein may be
the Department of Agrarian Reform (DAR) within thirty implemented ahead of the above schedules.
(30) days of any transaction involving agricultural lands
in excess of five (5) hectares. In effecting the transfer within these guidelines, priority
must be given to lands that are tenanted.
Section 7. Priorities. — The Department of Agrarian
Reform (DAR) in coordination with the Presidential The PARC shall establish guidelines to implement the
Agrarian Reform Council (PARC) shall plan and program above priorities and distribution scheme, including the
the acquisition and distribution of all agricultural lands determination of who are qualified beneficiaries:
through a period of ten (10) years from the effectivity of provided, that an owner-tiller may be a beneficiary of the
this Act. Lands shall be acquired and distributed as land he does not own but is actually cultivating to the
follows: extent of the difference between the area of the land he
owns and the award ceiling of three (3) hectares.
Phase One: Rice and corn lands under Presidential
Decree No. 27; all idle or abandoned lands; all private Section 8. Multinational Corporations. — All lands of
lands voluntarily offered by the owners for agrarian the public domain leased, held or possessed by
reform; all lands foreclosed by the government financial multinational corporations or associations, and other
institutions; all lands acquired by the Presidential lands owned by the government or by government-
Commission on Good Government (PCGG); and all owned or controlled corporations, associations,
other lands owned by the government devoted to or institutions, or entities, devoted to existing and
suitable for agriculture, which shall be acquired and operational agri-business or agro-industrial enterprises,
distributed immediately upon the effectivity of this Act, operated by multinational corporations and associations,
with the implementation to be completed within a period shall be programmed for acquisition and distribution
of not more than four (4) years; immediately upon the effectivity of this Act, with the
implementation to be completed within three (3) years.
Phase Two: All alienable and disposable public
agricultural lands; all arable public agricultural lands Lands covered by the paragraph immediately preceding,
under agro-forest, pasture and agricultural leases under lease, management, grower or service contracts,
already cultivated and planted to crops in accordance and the like, shall be disposed of as follows:
with Section 6, Article XIII of the Constitution; all public
agricultural lands which are to be opened for new (a) Lease, management, grower or service
development and resettlement; and all private contracts covering such lands covering an
agricultural lands in excess of fifty (50) hectares, insofar aggregate area in excess of 1,000 hectares,
as the excess hectarage is concerned, to implement leased or held by foreign individuals in excess of
principally the rights of farmers and regular farmworkers, 500 hectares are deemed amended to conform
who are the landless, to own directly or collectively the with the limits set forth in Section 3 of Article XII
lands they till, which shall be distributed immediately of the Constitution.
upon the effectivity of this Act, with the implementation to
be completed within a period of not more than four (4)
(b) Contracts covering areas not in excess of
years. 1,000 hectares in the case of such corporations
and associations, and 500 hectares, in the case
Phase Three: All other private agricultural lands of such individuals, shall be allowed to continue
commencing with large landholdings and proceeding to under their original terms and conditions but not
medium and small landholdings under the following beyond August 29, 1992, or their valid
schedule: termination, whichever comes sooner, after
which, such agreements shall continue only
(a) Landholdings above twenty-four (24) when confirmed by the appropriate government
hectares up to fifty (50) hectares, to begin on the agency. Such contracts shall likewise continue
fourth (4th) year from the effectivity of this Act even after the lands has been transferred to
and to be completed within three (3) years; and beneficiaries or awardees thereof, which transfer
shall be immediately commenced and
(b) Landholdings from the retention limit up to implemented and completed within the period of
twenty-four (24) hectares, to begin on the sixth three (3) years mentioned in the first paragraph
(6th) year from the effectivity of this Act and to hereof.
be completed within four (4) years; to implement
principally the right of farmers and regular (c) In no case will such leases and other
farmworkers who are landless, to own directly or agreements now being implemented extend
collectively the lands they till. beyond August 29, 1992, when all lands subject
 hereof shall have been distributed completely to Any provision of law to the contrary notwithstanding, the
qualified beneficiaries or awardees. PARC may suspend the implementation of this Act with
respect to ancestral lands for the purpose of identifying
Such agreements can continue thereafter only under a and delineating such lands: provided, that in the
new contract between the government or qualified autonomous regions, the respective legislatures may
beneficiaries or awardees, on the one hand, and said enact their own laws on ancestral domain subject to the
enterprises, on the other. provisions of the Constitution and the principles
enunciated in this Act and other national laws.
Lands leased, held or possessed by multinational
corporations, owned by private individuals and private Section 10. Exemptions and Exclusions. — Lands
non-governmental corporations, associations, institutions actually, directly and exclusively used and found to be
and entities, citizens of the Philippines, shall be subject necessary for parks, wildlife, forest reserves,
to immediate compulsory acquisition and distribution reforestation, fish sanctuaries and breeding grounds,
upon the expiration of the applicable lease, watersheds, and mangroves, national defense, school
management, grower or service contract in effect as of sites and campuses including experimental farm stations
August 29, 1987, or otherwise, upon its valid termination, operated by public or private schools for educational
whichever comes sooner, but not later than after ten (10) purposes, seeds and seedlings research and pilot
years following the effectivity of the Act. However during production centers, church sites and convents
the said period of effectivity, the government shall take appurtenant thereto, mosque sites and Islamic centers
steps to acquire these lands for immediate distribution appurtenant thereto, communal burial grounds and
thereafter. cemeteries, penal colonies and penal farms actually
worked by the inmates, government and private
research and quarantine centers and all lands with
In general, lands shall be distributed directly to the
eighteen percent (18%) slope and over, except those
individual worker-beneficiaries.n case it is not
economically feasible and sound to divide the land, then already developed shall be exempt from the coverage of
the Act.
they shall form a workers' cooperative or association
which will deal with the corporation or business
association or any other proper party for the purpose of Section 11. Commercial Farming. — Commercial
entering into a lease or growers agreement and for all farms, which are private agricultural lands devoted to
other legitimate purposes. Until a new agreement is commercial livestock, poultry and swine raising, and
entered into by and between the workers' cooperative or aquaculture including saltbeds, fishponds and prawn
association and the corporation or business association ponds, fruit farms, orchards, vegetable and cut-flower
or any other proper party, any agreement existing at the farms, and cacao, coffee and rubber plantations, shall be
time this Act takes effect between the former and the subject to immediate compulsory acquisition and
previous landowner shall be respected by both the distribution after (10) years from the effectivity of the
workers' cooperative or association and the corporation, Act.n the case of new farms, the ten-year period shall
business, association or such other proper party.n no begin from the first year of commercial production and
case shall the implementation or application of this Act operation, as determined by the DAR. During the ten-
justify or result in the reduction of status or diminution of year period, the government shall initiate the steps
any benefits received or enjoyed by the worker- necessary to acquire these lands, upon payment of just
beneficiaries, or in which they may have a vested right, compensation for the land and the improvements
at the time this Act becomes effective. thereon, preferably in favor of organized cooperatives or
associations, which shall hereafter manage the said
lands for the worker-beneficiaries.
The provisions of Section 32 of this Act, with regard to
production and income-sharing shall apply to farms
operated by multinational corporations. If the DAR determines that the purposes for which this
deferment is granted no longer exist, such areas shall
automatically be subject to redistribution.
During the transition period, the new owners shall be
assisted in their efforts to learn modern technology in
production. Enterprises which show a willingness and The provisions of Section 32 of the Act, with regard to
commitment and good-faith efforts to impart voluntarily production-and income-sharing, shall apply to
such advanced technology will be given preferential commercial farms.
treatment where feasible.
CHAPTER III
In no case shall a foreign corporation, association, entity Improvement of Tenurial and Labor Relations
or individual enjoy any rights or privileges better than
those enjoyed by a domestic corporation, association, Section 12. Determination of Lease Rentals. — In
entity or individual. order to protect and improve the tenurial and economic
status of the farmers in tenanted lands under the
Section 9. Ancestral Lands. — For purposes of this retention limit and lands not yet acquired under this Act,
Act, ancestral lands of each indigenous cultural the DAR is mandated to determine and fix immediately
community shall include, but not be limited to, lands in the lease rentals thereof in accordance with Section 34
the actual, continuous and open possession and of Republic Act No. 3844, as amended: provided, that
occupation of the community and its members: provided, the DAR shall immediately and periodically review and
that the Torrens Systems shall be respected. adjust the rental structure for different crops, including
rice and corn, or different regions in order to improve
The right of these communities to their ancestral lands progressively the conditions of the farmer, tenant or
lessee.
shall be protected to ensure their economic, social and
cultural well-being.n line with the principles of self-
determination and autonomy, the systems of land Section 13. Production-Sharing Plan. — Any
ownership, land use, and the modes of settling land enterprise adopting the scheme provided for in Section
disputes of all these communities must be recognized 32 or operating under a production venture, lease,
and respected. management contract or other similar arrangement and
any farm covered by Sections 8 and 11 hereof is hereby barangay hall, school or other public buildings in the
mandated to execute within ninety (90) days from the barangay where it shall be open to inspection by the
effectivity of this Act, a production-sharing plan, under public at all reasonable hours.
guidelines prescribed by the appropriate government
agency. CHAPTER V
Land Acquisition
Nothing herein shall be construed to sanction the
diminution of any benefits such as salaries, bonuses, Section 16. Procedure for Acquisition of Private
leaves and working conditions granted to the employee- Lands. — For purposes of acquisition of private lands,
beneficiaries under existing laws, agreements, and the following procedures shall be followed:
voluntary practice by the enterprise, nor shall the
enterprise and its employee-beneficiaries be prevented
(a) After having identified the land, the
from entering into any agreement with terms more landowners and the beneficiaries, the DAR shall
favorable to the latter. send its notice to acquire the land to the owners
thereof, by personal delivery or registered mail,
CHAPTER IV and post the same in a conspicuous place in the
Registration municipal building and barangay hall of the
place where the property is located. Said notice
Section 14. Registration of Landowners. — Within shall contain the offer of the DAR to pay a
one hundred eighty (180) days from the effectivity of this corresponding value in accordance with the
Act, all persons, natural or juridical, including valuation set forth in Sections 17, 18, and other
government entities, that own or claim to own pertinent provisions hereof.
agricultural lands, whether in their names or in the name
of others, except those who have already registered (b) Within thirty (30) days from the date of
pursuant to Executive Order No. 229, who shall be receipt of written notice by personal delivery or
entitled to such incentives as may be provided for the registered mail, the landowner, his administrator
PARC, shall file a sworn statement in the proper or representative shall inform the DAR of his
assessor's office in the form to be prescribed by the acceptance or rejection of the offer.
DAR, stating the following information:
(c) If the landowner accepts the offer of the
(a) the description and area of the property; DAR, the Land Bank of the Philippines (LBP)
shall pay the landowner the purchase price of
(b) the average gross income from the property the land within thirty (30) days after he executes
for at least three (3) years; and delivers a deed of transfer in favor of the
government and surrenders the Certificate of
(c) the names of all tenants and farmworkers Title and other muniments of title.
therein;
(d) In case of rejection or failure to reply, the
(d) the crops planted in the property and the DAR shall conduct summary administrative
area covered by each crop as of June 1, 1987; proceedings to determine the compensation for
the land requiring the landowner, the LBP and
other interested parties to submit evidence as to
(e) the terms of mortgages, lease, and
management contracts subsisting as of June 1, the just compensation for the land, within fifteen
1987, and (15) days from the receipt of the notice. After the
expiration of the above period, the matter is
deemed submitted for decision. The DAR shall
(f) the latest declared market value of the land decide the case within thirty (30) days after it is
as determined by the city or provincial assessor. submitted for decision.

Section 15. Registration of Beneficiaries. — The DAR (e) Upon receipt by the landowner of the
in coordination with the Barangay Agrarian Reform corresponding payment or, in case of rejection
Committee (BARC) as organized in this Act, shall or no response from the landowner, upon the
register all agricultural lessees, tenants and farmworkers deposit with an accessible bank designated by
who are qualified to be beneficiaries of the CARP. These the DAR of the compensation in cash or in LBP
potential beneficiaries with the assistance of the BARC bonds in accordance with this Act, the DAR shall
and the DAR shall provide the following data: take immediate possession of the land and shall
request the proper Register of Deeds to issue a
(a) names and members of their immediate farm Transfer Certificate of Title (TCT) in the name of
household; the Republic of the Philippines. The DAR shall
thereafter proceed with the redistribution of the
(b) owners or administrators of the lands they land to the qualified beneficiaries.
work on and the length of tenurial relationship;
(f) Any party who disagrees with the decision
(c) location and area of the land they work; may bring the matter to the court of proper
jurisdiction for final determination of just
(d) crops planted; and compensation.

(e) their share in the harvest or amount of rental CHAPTER VI

paid or wages received. Compensation

A copy of the registry or list of all potential CARP Section 17. Determination of Just Compensation. —
beneficiaries in the barangay shall be posted in the In determining just compensation, the cost of acquisition
of the land, the current value of the like properties, its foreclosed by government
nature, actual use and income, the sworn valuation by financial institutions in the same
the owner, the tax declarations, and the assessment province or region where the
made by government assessors shall be considered. lands for which the bonds were
The social and economic benefits contributed by the paid are situated;
farmers and the farmworkers and by the Government to
the property as well as the non-payment of taxes or (ii) Acquisition of shares of stock
loans secured from any government financing institution of government-owned or -
on the said land shall be considered as additional factors controlled corporations or
to determine its valuation. shares of stocks owned by the
government in private
Section 18. Valuation and Mode of Compensation. — corporations;
The LBP shall compensate the landowner in such
amounts as may be agreed upon by the landowner and (iii) Substitution for surety or bail
the DAR and the LBP, in accordance with the criteria bonds for the provisional
provided for in Sections 16 and 17, and other pertinent release of accused persons, or
provisions hereof, or as may be finally determined by the performance bonds;
court, as the just compensation for the land.
(iv) Security for loans with any
The compensation shall be paid on one of the following government financial institution,
modes, at the option of the landowner: provided the proceeds of the
loans shall be invested in an
(1) Cash payment, under the following terms economic enterprise, preferably
and conditions; in a small-and medium-scale
industry, in the same province
or region as the land for which
(a) For lands above fifty (50) hectares, — Twenty-five percent (25%) cash,
the bonds are the
paid;
insofar as the excess hectarage is balance to be paid in government
concerned. financial instruments negotiable at any
(v) Payment for various taxes
time.
and fees to government;
provided, that the use of these
(b) For lands above twenty-four (24) — Thirty percent (30%) cash, the balance
bonds for these purposes will be
hectares and up to fifty (50) hectares. to be paid in government financial
limited to a certain percentage
instruments negotiable at any time.
of the outstanding balance of
the financial instruments:
(c) For lands twenty-four (24) hectares — Thirty-five percent (35%) cash, the
provided, further, that the PARC
and below. balance to be paid in government
shall determine the percentage
financial instruments negotiable at any
mentioned above;
time.

(vi) Payment for tuition fees of

(2) Shares of stock in government-owned or the immediate family of the
controlled corporations, LBP preferred shares, original bondholder in
physical assets or other qualified investments in government universities,
accordance with guidelines set by the PARC; colleges, trade schools, and
other institutions;
(3) Tax credits which can be used against any
tax liability; (vii) Payment for fees of the
immediate family of the original
(4) LBP bonds, which shall have the following bondholder in government
features: hospitals; and

(a) Market interest rates aligned with 91- (viii) Such other uses as the
day treasury bill rates. Ten percent PARC may from time to time
(10%) of the face value of the bonds allow.
shall mature every year from the date of
issuance until the tenth (10th) year: In case of extraordinary inflation, the PARC shall take
provided, that should the landowner appropriate measures to protect the economy.
choose to forego the cash portion,
whether in full or in part, he shall be paid Section 19. Incentives for Voluntary Offers for
correspondingly in LBP bonds; Sales. — Landowners, other than banks and other
financial institutions, who voluntarily offer their lands for
(b) Transferability and negotiability. sale shall be entitled to an additional five percent (5%)
Such LBP bonds may be used by the cash payment.
landowner, his successors in interest or
his assigns, up to the amount of their Section 20. Voluntary Land Transfer. — Landowners
face value, for any of the following: of agricultural lands subject to acquisition under this Act
may enter into a voluntary arrangement for direct
(i) Acquisition of land or other transfer of their lands to qualified beneficiaries subject to
real properties of the the following guidelines:
government, including assets
under the Asset Privatization (a) All notices for voluntary land transfer must be
Program and other assets submitted to the DAR within the first year of the
 implementation of the CARP. Negotiations A basic qualification of a beneficiary shall be his
between the landowners and qualified willingness, aptitude, and ability to cultivate and make
beneficiaries covering any voluntary land the land as productive as possible. The DAR shall adopt
transfer which remain unresolved after one (1) a system of monitoring the record or performance of
year shall not be recognized and such land shall each beneficiary, so that any beneficiary guilty of
instead be acquired by the government and negligence or misuse of the land or any support
transferred pursuant to this Act. extended to him shall forfeit his right to continue as such
beneficiary. The DAR shall submit periodic reports on
(b) The terms and conditions of such transfer the performance of the beneficiaries to the PARC.
shall not be less favorable to the transferee than
those of the government's standing offer to If, due to the landowner's retention rights or to the
purchase from the landowner and to resell to the number of tenants, lessees, or workers on the land,
beneficiaries, if such offers have been made and there is not enough land to accommodate any or some
are fully known to both parties. of them, they may be granted ownership of other lands
available for distribution under this Act, at the option of
(c) The voluntary agreement shall include the beneficiaries.
sanctions for non-compliance by either party and
shall be duly recorded and its implementation Farmers already in place and those not accommodated
monitored by the DAR. in the distribution of privately-owned lands will be given
preferential rights in the distribution of lands from the
Section 21. Payment of Compensation by public domain.
Beneficiaries Under Voluntary Land Transfer. —
Direct payments in cash or in kind may be by the farmer- Section 23. Distribution Limit. — No qualified
beneficiary to the landowner under terms to be mutually beneficiary may own more than three (3) hectares of
agreed upon by both parties, which shall be binding agricultural land.
upon them, upon registration with the approval by the
DAR. Said approval shall be considered given, unless Section 24. Award to Beneficiaries. — The rights and
notice of disapproval is received by the farmer- responsibilities of the beneficiary shall commence from
beneficiary within thirty (30) days from the date of the time the DAR makes an award of the land to him,
registration. which award shall be completed within one hundred
eighty (180) days from the time the DAR takes actual
In the event they cannot agree on the price of land, the possession of the land. Ownership of the beneficiary
procedure for compulsory acquisition as provided in shall be evidenced by a Certificate of Land Ownership
Section 16 shall apply. The LBP shall extend financing to Award, which shall contain the restrictions and
the beneficiaries for purposes of acquiring the land. conditions provided for in this Act, and shall be recorded
in the Register of Deeds concerned and annotated on
CHAPTER VII the Certificate of Title.
Land Redistribution
Section 25. Award Ceilings for Beneficiaries. —
Section 22. Qualified Beneficiaries. — The lands Beneficiaries shall be awarded an area not exceeding
covered by the CARP shall be distributed as much as three (3) hectares which may cover a contiguous tract of
possible to landless residents of the same barangay, or land or several parcels of land cumulated up to the
in the absence thereof, landless residents of the same prescribed award limits.
municipality in the following order of priority:
For purposes of this Act, a landless beneficiary is one
(a) agricultural lessees and share tenants; who owns less than three (3) hectares of agricultural
land.
(b) regular farmworkers;
The beneficiaries may opt for collective ownership, such
as co-ownership or farmers cooperative or some other
(c) seasonal farmworkers;
form of collective organization: provided, that the total
area that may be awarded shall not exceed the total
(d) other farmworkers; number of co-owners or member of the cooperative or
collective organization multiplied by the award limit
(e) actual tillers or occupants of public lands; above prescribed, except in meritorious cases as
determined by the PARC. Title to the property shall be
(f) collectives or cooperatives of the above issued in the name of the co-owners or the cooperative
beneficiaries; and or collective organization as the case may be.

(g) others directly working on the land. Section 26. Payment by Beneficiaries. — Lands
awarded pursuant to this Act shall be paid for by the
Provided, however, that the children of landowners who beneficiaries to the LBP in thirty (30) annual
are qualified under Section 6 of this Act shall be given amortizations at six percent (6%) interest per annum.
preference in the distribution of the land of their parents: The payments for the first three (3) years after the award
and provided, further, that actual tenant-tillers in the may be at reduced amounts as established by the
landholdings shall not be ejected or removed therefrom. 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.
Beneficiaries under Presidential Decree No. 27 who
Should the scheduled annual payments after the fifth
have culpably sold, disposed of, or abandoned their land
year exceed ten percent (10%) of the annual gross
are disqualified to become beneficiaries under this
production and the failure to produce accordingly is not
Program.
due to the beneficiary's fault, the LBP may reduce the
interest rate or reduce the principal obligations to make workers' cooperative or association and the corporation
the repayment affordable. or business association.

The LBP shall have a lien by way of mortgage on the Section 30. Homelots and Farmlots for Members of
land awarded to the beneficiary; and this mortgage may Cooperatives. — The individual members of the
be foreclosed by the LBP for non-payment of an cooperatives or corporations mentioned in the preceding
aggregate of three (3) annual amortizations. The LBP section shall be provided with homelots and small
shall advise the DAR of such proceedings and the latter farmlots for their family use, to be taken from the land
shall subsequently award the forfeited landholdings to owned by the cooperative or corporation.
other qualified beneficiaries. A beneficiary whose land,
as provided herein, has been foreclosed shall thereafter Section 31. Corporate Landowners. — Corporate
be permanently disqualified from becoming a beneficiary landowners may voluntarily transfer ownership over their
under this Act. agricultural landholdings to the Republic of the
Philippines pursuant to Section 20 hereof or to qualified
Section 27. Transferability of Awarded Lands. — beneficiaries, under such terms and conditions,
Lands acquired by beneficiaries under this Act may not consistent with this Act, as they may agree upon, subject
be sold, transferred or conveyed except through to confirmation by the DAR.
hereditary succession, or to the government, or the LBP,
or to other qualified beneficiaries for a period of ten (10) Upon certification by the DAR, corporations owning
years: provided, however, that the children or the spouse agricultural lands may give their qualified beneficiaries
of the transferor shall have a right to repurchase the land the right to purchase such proportion of the capital stock
from the government or LBP within a period of two (2) of the corporation that the agricultural land, actually
years. Due notice of the availability of the land shall be devoted to agricultural activities, bears in relation to the
given by the LBP to the Barangay Agrarian Reform company's total assets, under such terms and conditions
Committee (BARC) of the barangay where the land is as may be agreed upon by them.n no case shall the
situated. The Provincial Agrarian Reform Coordinating compensation received by the workers at the time the
Committee (PARCCOM) as herein provided, shall, in shares of stocks are distributed be reduced. The same
turn, be given due notice thereof by the BARC. principle shall be applied to associations, with respect to
their equity or participation.
If the land has not yet been fully paid by the beneficiary,
the rights to the land may be transferred or conveyed, Corporations or associations which voluntarily divest a
with prior approval of the DAR, to any heir of the proportion of their capital stock, equity or participation in
beneficiary or to any other beneficiary who, as a favor of their workers or other qualified beneficiaries
condition for such transfer or conveyance, shall cultivate under this section shall be deemed to have complied
the land himself. Failing compliance herewith, the land with the provisions of the Act: provided, that the following
shall be transferred to the LBP which shall give due conditions are complied with:
notice of the availability of the land in the manner
specified in the immediately preceding paragraph.
a) In order to safeguard the right of beneficiaries
who own shares of stocks to dividends and other
In the event of such transfer to the LBP, the latter shall financial benefits, the books of the corporation or
compensate the beneficiary in one lump sum for the association shall be subject to periodic audit by
amounts the latter has already paid, together with the certified public accountants chosen by the
value of improvements he has made on the land. beneficiaries;

Section 28. Standing Crops at the Time of b) Irrespective of the value of their equity in the
Acquisition. — The landowner shall retain his share of corporation or association, the beneficiaries
any standing crops unharvested at the time the DAR shall be assured of at least one (1)
shall take possession of the land under Section 16 of the representative in the board of directors, or in a
Act, and shall be given a reasonable time to harvest the management or executive committee, if one
same. exists, of the corporation or association; and

CHAPTER VIII c) Any shares acquired by such workers and

Corporate Farms beneficiaries shall have the same rights and
features as all other shares.
Section 29. Farms Owned or Operated by
Corporations or Other Business Associations. — In d) Any transfer of shares of stocks by the
the case of farms owned or operated by corporations or original beneficiaries shall be void ab initio
other business associations, the following rules shall be unless said transaction is in favor of a qualified
observed by the PARC: and registered beneficiary within the same
corporation.
In general, lands shall be distributed directly to the
individual worker-beneficiaries. If within two (2) years from the approval of this Act, the
land or stock transfer envisioned above is not made or
In case it is not economically feasible and sound to realized or the plan for such stock distribution approved
divide the land, then it shall be owned collectively by the by the PARC within the same period, the agricultural
workers' cooperative or association which will deal with land of the corporate owners or corporation shall be
the corporation or business association. Until a new subject to the compulsory coverage of this Act.
agreement is entered into by and between the workers'
cooperative or association and the corporation or Section 32. Production-Sharing. — Pending final land
business association, any agreement existing at the time transfer, individuals or entities owning, or operating
this Act takes effect between the former and the under lease or management contract, agricultural lands
previous landowner shall be respected by both the are hereby mandated to execute a production-sharing
plan with their farm workers or farmworkers' following services to farmer-beneficiaries and affected
reorganization, if any, whereby three percent (3%) of the landowners:
gross sales from the production of such lands are
distributed within sixty (60) days of the end of the fiscal 1) Irrigation facilities, especially second crop or
year as compensation to regular and other farmworkers dry season irrigation facilities;
in such lands over and above the compensation they
currently receive: provided, that these individuals or
2) Infrastructure development and public works
entities realize gross sales in excess of five million pesos projects in areas and settlements that come
per annum unless the DAR, upon proper application, under agrarian reform, and for this purpose, the
determines a lower ceiling.
preparation of the physical development plan of
such settlements providing suitable barangay
In the event that the individual or entity realizes a profit, sites, potable water and power resources,
an additional ten percent (10%) of the net profit after tax irrigation systems and other facilities for a sound
shall be distributed to said regular and other agricultural development plan;
farmworkers within ninety (90) days of the end of the
fiscal year.
3) Government subsidies for the use of irrigation
facilities;
To forestall any disruption in the normal operation of
lands to be turned over to the farmworker-beneficiaries 4) Price support and guarantee for all
mentioned above, a transitory period, the length of which
agricultural produce;
shall be determined by the DAR, shall be established.
5) Extending to small landowners, farmers'
During this transitory period, at least one percent (1%) of organizations the necessary credit, like
the gross sales of the entity shall be distributed to the concessional and collateral-free loans, for agro-
managerial, supervisory and technical group in place at
industrialization based on social collaterals like
the time of the effectivity of this Act, as compensation for
the guarantees of farmers' organization:
such transitory managerial and technical functions as it
will perform, pursuant to an agreement that the
farmworker-beneficiaries and the managerial, 6) Promoting, developing and extending
supervisory and technical group may conclude, subject financial assistance to small-and medium-scale
to the approval of the DAR. industries in agrarian reform areas;

Section 33. Payment of Shares of Cooperative or 7) Assigning sufficient numbers of agricultural

Association. — Shares of a cooperative or association extension workers to farmers' organizations;
acquired by farmers-beneficiaries or workers-
beneficiaries shall be fully paid for in an amount 8) Undertake research, development and
corresponding to the valuation as determined in the dissemination of information on agrarian reform
immediately succeeding section. The landowner and the and low-cost and ecologically sound farm inputs
LBP shall assist the farmers-beneficiaries and workers- and technologies to minimize reliance on
beneficiaries in the payment for said shares by providing expensive and imported agricultural inputs;
credit financing.
9) Development of cooperative management
Section 34. Valuation of Lands. — A valuation scheme skills through intensive training;
for the land shall be formulated by the PARC, taking into
account the factors enumerated in Section 17, in 10) Assistance in the identification of ready
addition to the need to stimulate the growth of markets for agricultural produce and training in
cooperatives and the objective of fostering responsible other various prospects of marketing; andtai
participation of the workers-beneficiaries in the creation
of wealth. 11) Administration operation management and
funding of support services, programs and
In the determination of price that is just not only to the projects including pilot projects and models
individuals but to society as well, the PARC shall consult related to agrarian reform as developed by the
closely with the landowner and the workers- DAR.
beneficiaries.
Section 36. Funding for Support Services. — In order
In case of disagreement, the price as determined by the to cover the expenses and cost of support services, at
PARC, if accepted by the workers-beneficiaries, shall be least twenty-five percent (25%) of all appropriations for
followed, without prejudice to the landowner's right to agrarian reform shall be immediately set aside and made
petition the Special Agrarian Court to resolve the issue available for this purpose.n addition, the DAR shall be
of valuation. authorized to package proposals and receive grants, aid
and other forms of financial assistance from any source.
CHAPTER IX
Support Services Section 37. Support Services to the Beneficiaries. —
The PARC shall ensure that support services to farmers-
Section 35. Creation of Support Services Office. — beneficiaries are provided, such as:
There is hereby created the Office of Support Services
under the DAR to be headed by an Undersecretary. (a) Land surveys and titling;

The Office shall provide general support and (b) Liberalized terms on credit facilities and
coordinative services in the implementation of the production loans;
program particularly in carrying out the provisions of the
 (c) Extension services by way of planting, Section 39. Land Consolidation. — The DAR shall
cropping, production and post-harvest carry out land consolidation projects to promote equal
technology transfer, as well as marketing and distribution of landholdings, to provide the needed
management assistance and support to infrastructures in agriculture, and to conserve soil fertility
cooperatives and farmers' organizations; and prevent erosion.

(d) Infrastructure such as access trails, mini- CHAPTER X

dams, public utilities, marketing and storage Special Areas of Concern
facilities; and
Section 40. Special Areas of Concern. — As an
(e) Research, production and use of organic integral part of the Comprehensive Agrarian Reform
fertilizers and other local substances necessary Program, the following principles in these special areas
in farming and cultivation. of concern shall be observed:

The PARC shall formulate policies to ensure that support (1) Subsistence Fishing. — Small fisherfolk,
services to farmer-beneficiaries shall be provided at all including seaweed farmers, shall be assured of
stages of land reform. greater access to the utilization of water
resources.
The Bagong Kilusang Kabuhayan sa Kaunlaran (BKKK)
Secretariat shall be transferred and attached to the LBP, (2) Logging and Mining Concessions. — Subject
for its supervision including all its applicable and existing to the requirement of a balanced ecology and
funds, personnel, properties, equipment and records. conservation of water resources, suitable areas,
as determined by the Department of
Misuse or diversion of the financial and support services Environment and Natural Resources (DENR), in
herein provided shall result in sanctions against the logging, mining and pasture areas, shall be
beneficiary guilty thereof, including the forfeiture of the opened up for agrarian settlements whose
land transferred to him or lesser sanctions as may be beneficiaries shall be required to undertake
provided by the PARC, without prejudice to criminal reforestation and conservation production
prosecution. methods. Subject to existing laws, rules and
regulations, settlers and members of tribal
Section 38. Support Services to Landowners. — The communities shall be allowed to enjoy and
exploit the products of the forest other than timer
PARC with the assistance of such other government
agencies and instrumentalities as it may direct, shall within the logging concessions.
provide landowners affected by the CARP and prior
agrarian reform programs with the following services: (3) Sparsely Occupied Public Agricultural Lands.
— Sparsely occupied agricultural lands of the
public domain shall be surveyed, proclaimed
(a) Investment information financial and
counseling assistance; and developed as farm settlements for qualified
landless people based on an organized program
to ensure their orderly and early development.
(b) Facilities, programs and schemes for the
conversion or exchange of bonds issued for
Agricultural land allocations shall be made for
payment of the lands acquired with stocks and
bonds issued by the National Government, the ideal family-size farms as determined by the
Central Bank and other government institutions PARC. Pioneers and other settlers shall be
treated equally in every respect.
and instrumentalities;

Subject to the prior rights of qualified

(c) Marketing of LBP bonds, as well as
promoting the marketability of said bonds in beneficiaries, uncultivated lands of the public
domain shall be made available on a lease basis
traditional and non-traditional financial markets
to interested and qualified parties. Parties who
and stock exchanges; and
will engaged in the development of capital-
intensive, traditional or pioneering crops shall be
(d) Other services designed to utilize given priority.
productively the proceeds of the sale of such
lands for rural industrialization.
The lease period, which shall not be more than a
total of fifty (50) years, shall be proportionate to
A landowner who invests in rural-based industries shall the amount of investment and production goals
be entitled to the incentives granted to a registered of the lessee. A system of evaluation and audit
enterprise engaged in a pioneer or preferred area of shall be instituted.
investment as provided for in the Omnibus Investment
Code of 1987, or to such other incentives as the PARC,
(4) Idle, Abandoned, Foreclosed and
the LBP, or other government financial institutions may
Sequestered Lands. — Idle, abandoned,
provide.
foreclosed and sequestered lands shall be
planned for distribution as home lots and family-
The LBP shall redeem a landowner's LBP bonds at face size farmlots to actual occupants.f land area
value, provided that the proceeds thereof shall be permits, other landless families shall be
invested in a BOI-registered company or in any agri- accommodated in these lands.
business or agro-industrial enterprise in the region
where the landowner has previously made investments,
(5) Rural Women. — All qualified women
to the extent of thirty percent (30%) of the face value of
members of the agricultural labor force must be
said LBP bonds, subject to guidelines that shall be
guaranteed and assured equal right to
issued by the LBP.
ownership of the land, equal shares of the farm's
 produce, and representation in advisory or Reform Officer as Executive Officer, and one
appropriate decision-making bodies. representative each from the Departments of Agriculture,
and of Environment and Natural Resources and from the
(6) Veterans and Retirees. — In accordance LBP, one representative each from existing farmers'
with Section 7 of Article XVI of the Constitution, organizations, agricultural cooperatives and non-
landless war veterans and veterans of military governmental organizations in the province; two
campaigns, their surviving spouse and orphans, representatives from landowners, at least one of whom
retirees of the Armed Forces of the Philippines shall be a producer representing the principal crop of the
(AFP) and the Integrated National Police (INP), province, and two representatives from farmer and
returnees, surrenderees, and similar farmworker-beneficiaries, at least one of whom shall be
beneficiaries shall be given due consideration in a farmer or farmworker representing the principal crop of
the disposition of agricultural lands of the public the province, as members: provided, that in areas where
domain. there are cultural communities, the latter shall likewise
have one representative.
(7) Agriculture Graduates. — Graduates of
agricultural schools who are landless shall be The PARCCOM shall coordinate and monitor the
assisted by the government, through the DAR, in implementation of the CARP in the province.t shall
their desire to own and till agricultural lands. provide information on the provisions of the CARP,
guidelines issued by the PARC and on the progress of
CHAPTER XI the CARP in the province.
Program Implementation
Section 45. Province-by-Province Implementation. —
Section 41. The Presidential Agrarian Reform The PARC shall provide the guidelines for a province-by-
Council. — The Presidential Agrarian Reform Council province implementation of the CARP. The ten-year
program of distribution of public and private lands in
(PARC) shall be composed of the President of the
each province shall be adjusted from year by the
Philippines as Chairman, the Secretary of Agrarian
province's PARCCOM in accordance with the level of
Reform as Vice-Chairman and the following as
operations previously established by the PARC, in every
members; Secretaries of the Departments of Agriculture;
Environment and Natural Resources; Budget and case ensuring that support services are available or
Management; Local Government: Public Works and have been programmed before actual distribution is
effected.
Highways; Trade and Industry; Finance; Labor and
Employment; Director-General of the National Economic
and Development Authority; President, Land Bank of the Section 46. Barangay Agrarian Reform Committee
Philippines; Administrator, National Irrigation (BARC). — Unless otherwise provided in this Act, the
Administration; and three (3) representatives of affected provisions of Executive Order No. 229 regarding the
landowners to represent Luzon, Visayas and Mindanao; organization of the Barangay Agrarian Reform
six (6) representatives of agrarian reform beneficiaries, Committee (BARC) shall be in effect.
two (2) each from Luzon, Visayas and Mindanao,
provided that one of them shall be from the cultural Section 47. Functions of the BARC. — In addition to
communities. those provided in Executive Order No. 229, the BARC
shall have the following functions:
Section 42. Executive Committee. — There shall be
an Executive Committee (EXCOM) of the PARC (a) Mediate and conciliate between parties
composed of the Secretary of the DAR as Chairman, involved in an agrarian dispute including matters
and such other members as the President may related to tenurial and financial arrangements;
designate, taking into account Article XIII, Section 5 of
the Constitution. Unless otherwise directed by PARC, (b) Assist in the identification of qualified
the EXCOM may meet and decide on any and all beneficiaries and landowners within the
matters in between meetings of the PARC: provided, barangay;
however, that its decisions must be reported to the
PARC immediately and not later than the next meeting.
(c) Attest to the accuracy of the initial parcellary
mapping of the beneficiary's tillage;
Section 43. Secretariat. — A PARC Secretariat is
hereby established to provide general support and (d) Assist qualified beneficiaries in obtaining
coordinative services such as inter-agency linkages; credit from lending institutions;
program and project appraisal and evaluation and
general operations monitoring for the PARC.
(e) Assist in the initial determination of the value
of the land;
The Secretariat shall be headed by the Secretary of
Agrarian Reform who shall be assisted by an
Undersecretary and supported by a staff whose (f) Assist the DAR representatives in the
composition shall be determined by the PARC Executive preparation of periodic reports on the CARP
Committee and whose compensation shall be implementation for submission to the DAR;
chargeable against the Agrarian Reform Fund. All
officers and employees of the Secretariat shall be (g) Coordinate the delivery of support services to
appointed by the Secretary of Agrarian Reform. beneficiaries; and

Section 44. Provincial Agrarian Reform Coordinating (h) Perform such other functions as may be
Committee (PARCCOM). — A Provincial Agrarian assigned by the DAR.
Reform Coordinating Committee (PARCCOM) is hereby
created in each province, composed of a Chairman, who (2) The BARC shall endeavor to mediate, conciliate and
shall be appointed by the President upon the settle agrarian disputes lodged before it within thirty (30)
recommendation of the EXCOM, the Provincial Agrarian days from its taking cognizance thereof.f after the lapse
of the thirty day period, it is unable to settle the dispute, reasonable penalties, including but not limited to fines or
it shall issue a certificate of its proceedings and shall censures upon erring parties.
furnish a copy thereof upon the parties within seven (7)
days after the expiration of the thirty-day period. Section 53. Certification of the BARC. — The DAR
shall not take cognizance of any agrarian dispute or
Section 48. Legal Assistance. — The BARC or any controversy unless a certification from the BARC that the
member thereof may, whenever necessary in the dispute has been submitted to it for mediation and
exercise of any of its functions hereunder, seek the legal conciliation without any success of settlement is
assistance of the DAR and the provincial, city, or presented: provided, however, that if no certification is
municipal government. issued by the BARC within thirty (30) days after a matter
or issue is submitted to it for mediation or conciliation the
Section 49. Rules and Regulations. — The PARC and case or dispute may be brought before the PARC.
the DAR shall have the power to issue rules and
regulations, whether substantive or procedural, to carry CHAPTER XIII
out the objects and purposes of this Act. Said rules shall Judicial Review
take effect ten (10) days after publication in two (2)
national newspapers of general circulation. Section 54. Certiorari. — Any decision, order, award or
ruling of the DAR on any agrarian dispute or on any
CHAPTER XII matter pertaining to the application, implementation,
Administrative Adjudication enforcement, or interpretation of this Act and other
pertinent laws on agrarian reform may be brought to the
Section 50. Quasi-Judicial Powers of the DAR. — Court of Appeals by certiorari except as otherwise
The DAR is hereby vested with the primary jurisdiction to provided in this Act within fifteen (15) days from the
determine and adjudicate agrarian reform matters and receipt of a copy thereof.
shall have exclusive original jurisdiction over all matters
involving the implementation of agrarian reform except The findings of fact of the DAR shall be final and
those falling under the exclusive jurisdiction of the conclusive if based on substantial evidence.
Department of Agriculture (DA) and the Department of
Environment and Natural Resources (DENR). Section 55. No Restraining Order or Preliminary
Injunction. — No court in the Philippines shall have
It shall not be bound by technical rules of procedure and jurisdiction to issue any restraining order or writ of
evidence but shall proceed to hear and decide all cases, preliminary injunction against the PARC or any of its duly
disputes or controversies in a most expeditious manner, authorized or designated agencies in any case, dispute
employing all reasonable means to ascertain the facts of or controversy arising from, necessary to, or in
every case in accordance with justice and equity and the connection with the application, implementation,
merits of the case. Toward this end, it shall adopt a enforcement, or interpretation of this Act and other
uniform rule of procedure to achieve a just, expeditious pertinent laws on agrarian reform.
and inexpensive determination for every action or
proceeding before it. Section 56. Special Agrarian Court. — The Supreme
Court shall designate at least one (1) branch of the
It shall have the power to summon witnesses, administer Regional Trial Court (RTC) within each province to act
oaths, take testimony, require submission of reports, as a Special Agrarian Court.
compel the production of books and documents and
answers to interrogatories and issue subpoena, and The Supreme Court may designate more branches to
subpoena duces tecum, and enforce its writs through constitute such additional Special Agrarian Courts as
sheriffs or other duly deputized officers.t shall likewise may be necessary to cope with the number of agrarian
have the power to punish direct and indirect contempts cases in each province.n the designation, the Supreme
in the same manner and subject to the same penalties Court shall give preference to the Regional Trial Courts
as provided in the Rules of Court. which have been assigned to handle agrarian cases or
whose presiding judges were former judges of the
Responsible farmer leaders shall be allowed to defunct Court of Agrarian Relations.
represent themselves, their fellow farmers, or their
organizations in any proceedings before the DAR: The Regional Trial Court (RTC) judges assigned to said
provided, however, that when there are two or more courts shall exercise said special jurisdiction in addition
representatives for any individual or group, the to the regular jurisdiction of their respective courts.
representatives should choose only one among
themselves to represent such party or group before any
The Special Agrarian Courts shall have the powers and
DAR proceedings.
prerogatives inherent in or belonging to the Regional
Trial Courts.
Notwithstanding an appeal to the Court of Appeals, the
decision of the DAR shall be immediately executory. Section 57. Special Jurisdiction. — The Special
Agrarian Courts shall have original and exclusive
Section 51. Finality of Determination. — Any case or jurisdiction over all petitions for the determination of just
controversy before it shall be decided within thirty (30) compensation to landowners, and the prosecution of all
days after it is submitted for resolution. Only one (1) criminal offenses under this Act. The Rules of Court shall
motion for reconsideration shall be allowed. Any order, apply to all proceedings before the Special Agrarian
ruling or decision shall be final after the lapse of fifteen Courts, unless modified by this Act.
(15) days from receipt of a copy thereof.
The Special Agrarian Courts shall decide all appropriate
Section 52. Frivolous Appeals. — To discourage cases under their special jurisdiction within thirty (30)
frivolous or dilatory appeals from the decisions or orders days from submission of the case for decision.
on the local or provincial levels, the DAR may impose
Section 58. Appointment of Commissioners. — The (c) Proceeds of the disposition of the properties
Special Agrarian Courts, upon their own initiative or at of the Government in foreign countries;
the instance of any of the parties, may appoint one or
more commissioners to examine, investigate and (d) Portion of amounts accruing to the
ascertain facts relevant to the dispute including the Philippines from all sources of official foreign
valuation of properties, and to file a written report thereof grants and concessional financing from all
with the court. countries, to be used for the specific purposes of
financing production credits, infrastructures, and
Section 59. Orders of the Special Agrarian Courts. — other support services required by this Act;
No order of the Special Agrarian Courts on any issue,
question, matter or incident raised before them shall be (e) Other government funds not otherwise
elevated to the appellate courts until the hearing shall appropriated.
have been terminated and the case decided on the
merits. All funds appropriated to implement the provisions of this
Act shall be considered continuing appropriations during
Section 60. Appeals. — An appeal may be taken from the period of its implementation.
the decision of the Special Agrarian Courts by filing a
petition for review with the Court of Appeals within fifteen Section 64. Financial Intermediary for the CARP. —
(15) days receipt of notice of the decision; otherwise, the The Land Bank of the Philippines shall be the financial
decision shall become final.
intermediary for the CARP, and shall insure that the
social justice objectives of the CARP shall enjoy a
An appeal from the decision of the Court of Appeals, or preference among its priorities.
from any order, ruling or decision of the DAR, as the
case may be, shall be by a petition for review with the CHAPTER XV
Supreme Court within a non-extendible period of fifteen General Provisions
(15) days from receipt of a copy of said decision.
Section 65. Conversion of Lands. — After the lapse of
Section 61. Procedure on Review. — Review by the
five (5) years from its award, when the land ceases to be
Court of Appeals or the Supreme Court, as the case may
economically feasible and sound for agricultural
be, shall be governed by the Rules of Court. The Court
purposes, or the locality has become urbanized and the
of Appeals, however, may require the parties to file
land will have a greater economic value for residential,
simultaneous memoranda within a period of fifteen (15)
commercial or industrial purposes, the DAR, upon
days from notice, after which the case is deemed application of the beneficiary or the landowner, with due
submitted for decision. notice to the affected parties, and subject to existing
laws, may authorize the reclassification or conversion of
Section 62. Preferential Attention in Courts. — All the land and its disposition: provided, that the beneficiary
courts in the Philippines, both trial and appellate, shall shall have fully paid his obligation.
give preferential attention to all cases arising from or in
connection with the implementation of the provisions of Section 66. Exemptions from Taxes and Fees of
this Act. Land Transfers. — Transactions under this Act
involving a transfer of ownership, whether from natural
All cases pending in court arising from or in connection or juridical persons, shall be exempted from taxes
with the implementation of this Act shall continue to be arising from capital gains. These transactions shall also
heard, tried and decided into their finality, be exempted from the payment of registration fees, and
notwithstanding the expiration of the ten-year period all other taxes and fees for the conveyance or transfer
mentioned in Section 5 hereof. thereof; provided, that all arrearages in real property
taxes, without penalty or interest, shall be deductible
CHAPTER XIV from the compensation to which the owner may be
Financing entitled.

Section 63. Funding Source. — The initial amount Section 67. Free Registration of Patents and
needed to implement this Act for the period of ten (10) Titles. — All Registers of Deeds are hereby directed to
years upon approval hereof shall be funded from the register, free from payment of all fees and other charges,
Agrarian Reform Fund created under Sections 20 and 21 patents, titles and documents required for the
of Executive Order No. 229. implementation of the CARP.

Additional amounts are hereby authorized to be Section 68. Immunity of Government Agencies from
appropriated as and when needed to augment the Undue Interference. — No injunction, restraining order,
Agrarian Reform Fund in order to fully implement the prohibition or mandamus shall be issued by the lower
provisions of this Act. courts against the Department of Agrarian Reform
(DAR), the Department of Agriculture (DA), the
Sources of funding or appropriations shall include the Department of Environment and Natural Resources
following: (DENR), and the Department of Justice (DOJ) in their
implementation of the program.
(a) Proceeds of the sales of the Assets
Privatization Trust; Section 69. Assistance of Other Government
Entities. — The PARC, in the exercise of its functions, is
(b) All receipts from assets recovered and from hereby authorized to call upon the assistance and
sales of ill-gotten wealth recovered through the support of other government agencies, bureaus and
offices, including government-owned or -controlled
Presidential Commission on Good Government;
corporations.
Section 70. Disposition of Private Agricultural (d) The willful prevention or obstruction by any
Lands. — The sale or disposition of agricultural lands person, association or entity of the
retained by a landowner as a consequence of Section 6 implementation of the CARP.
hereof shall be valid as long as the total landholdings
that shall be owned by the transferee thereof inclusive of (e) The sale, transfer, conveyance or change of
the land to be acquired shall not exceed the landholding the nature of lands outside of urban centers and
ceilings provided for in this Act. city limits either in whole or in part after the
effectivity of this Act. The date of the registration
Any sale or disposition of agricultural lands after the of the deed of conveyance in the Register of
effectivity of this Act found to be contrary to the Deeds with respect to titled lands and the date
provisions hereof shall be null and void. of the issuance of the tax declaration to the
transferee of the property with respect to
Transferees of agricultural lands shall furnish the unregistered lands, as the case may be, shall be
appropriate Register of Deeds and the BARC an affidavit conclusive for the purpose of this Act.
attesting that his total landholdings as a result of the said
acquisition do not exceed the landholding ceiling. The (f) The sale, transfer or conveyance by a
Register of Deeds shall not register the transfer of any beneficiary of the right to use or any other
agricultural land without the submission of this sworn usufructuary right over the land he acquired by
statement together with proof of service of a copy virtue of being a beneficiary, in order to
thereof to the BARC. circumvent the provisions of this Act.

Section 71. Bank Mortgages. — Banks and other Section 74. Penalties. — Any person who knowingly or
financial institutions allowed by law to hold mortgage willfully violates the provisions of this Act shall be
rights or security interests in agricultural lands to secure punished by imprisonment of not less than one (1)
loans and other obligations of borrowers, may acquire month to not more than three (3) years or a fine of not
title to these mortgaged properties, regardless of area, less than one thousand pesos (P1,000.00) and not more
subject to existing laws on compulsory transfer of than fifteen thousand pesos (P15,000.00), or both, at the
foreclosed assets and acquisition as prescribed under discretion of the court.
Section 13 of this Act.
If the offender is a corporation or association, the officer
Section 72. Lease, Management, Grower or Service responsible therefore shall be criminally liable.
Contracts, Mortgages and Other Claims. — Lands
covered by this Act under lease, management, grower or Section 75. Suppletory Application of Existing
service contracts, and the like shall be disposed of as Legislation. — The provisions of Republic Act No. 3844
follows: as amended, Presidential Decree Nos. 27 and 266 as
amended, Executive Order Nos. 228 and 229, both
(a) Lease, management, grower or service Series of 1987; and other laws not inconsistent with this
contracts covering private lands may continue Act shall have suppletory effect.
under their original terms and conditions until the
expiration of the same even if such land has, in Section 76. Repealing Clause. — Section 35 of
the meantime, been transferred to qualified Republic Act No. 3834, Presidential Decree No. 316, the
beneficiaries. last two paragraphs of Section 12 of Presidential Decree
No. 946, Presidential Decree No. 1038, and all other
(b) Mortgages and other claims registered with laws, decrees executive orders, rules and regulations,
the Register of Deeds shall be assumed by the issuances or parts thereof inconsistent with this Act are
government up to an amount equivalent to the hereby repealed or amended accordingly.
landowner's compensation value as provided in
this Act. Section 77. Separability Clause. — If, for any reason,
any section or provision of this Act is declared null and
Section 73. Prohibited Acts and Omissions. — The void, no other section, provision, or part thereof shall be
following are prohibited: affected and the same shall remain in full force and
effect.
(a) The ownership or possession, for the
purpose of circumventing the provisions of this Section 78. Effectivity Clause. — This Act shall take
Act, of agricultural lands in excess of the total effect immediately after publication in at least two (2)
retention limits or award ceilings by any person, national newspapers of general circulation.
natural or juridical, except those under collective
ownership by farmer-beneficiaries. Approved: June 10, 1988

(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.

(c) The conversion by any landowner of his

agricultural land into any non-agricultural use
with intent to avoid the application of this Act to
his landholdings and to dispossess his tenant
farmers of the land tilled by them.