AGRARIAN LAW - UNGOS BOOK NOTES

CARP NATALIA REALTY DEV V. DAR (townsite reservation not agricultural land)
SECTION  Landowner: Natalia Realty Inc.
1:  PD 1637 - Proclaimed 20,312 hectares of land as town site reservation, part
AGRARIAN LAW – all laws that govern and regulate rights and relationship of which was the land of Natalia
between tenants, agricultural workers, lessees or landowners (tall), over agricultural o Antipolo, Montalban, San Mateo
lands o Reason: population overspill in the metropolis
 Private landowners were allowed to develop properties into low cost housing
MEANING OF AGRARIAN REFORM 1 subdivisions with reservation
 Physical redistribution of lands and the totality of factors and support services  Natalia was allowed by HLURB to develop land into a subdivision
designed to lift the economic status of beneficiaries and all other arrangements  CARL then took effect 9 years later (June 15 1988)
alternative to the physical redistribution of the lands, such as  Natalia sought to cancel DAR’s Notice of Coverage on undeveloped
o production or profit sharing, portions of the subdivision
o labor administration, and o Natalia claimed that the land was no longer covered by CARL because
o distribution of shares of stock, the PD converted the land to a town site reservation and was therefor no
 Allows them to receive a just share of the fruits of the lands they work longer agricultural land
 Regardless of crop or fruits produced to farmers and regular farmers who are  HELD: Undeveloped portions of Natalia properties are NOT covered by the
landless and irrespective of tenurial arrangement CARL because they are NOT agricultural land. Agricultural land does NOT
include commercial, industrial or residential land.
REASON FOR ALTERNATIVES TO LAND DISTRIBUTION - Confining
agrarian CONSTITUTIONALITY OF CARP – valid exercise of police power
reform to land distribution is not feasible because there is not enough agricultural
land to be distributed to every farmer or regular farm workers SECTION2
PRIMARY OBJECTIVE OF AGRARIAN REFORM
CARL APPLIES ONLY TO AGRICULTURAL LAND – Lands
 Breakup agricultural lands to transform them into economic size farms to be
 Devoted to agricultural activities owned by farmers themselves, to uplift their economic status.
 Arable and suitable for farming  Founded on the right of landless farmers and landless regular farm workers to
directly or collectively own the lands they till or in case of farm workers, to
CARL DOES NOT APPLY TO: (CRIM-F) receive a just share in fruits thereof.
1. Commercial Land  Does not guarantee improvement in lives of the agrarian reform beneficiaries,
2. Residential Land but it merely provides for possibility of favorable chance of uplifting economic
3. Industrial Land status of the agrarian reform beneficiaries
4. Mineral Land
5. Forest Land MEANING OF ECONOMIC FAMILY SIZE FARM - area of farm land that permits
efficient use of labor and capital resources of the farm family and will produce a
sufficient income to provide for (MIR)

1
Section 3

AYAME MATSUMORI ^_^ 1

 Modest standard of living to meet a farm family’s needs for food, clothing, shelter tenurial arrangements.
and education with  includes any controversy relating to compensation of lands
 Possible allowance for payment of yearly installments on land and acquired under this Act and other terms and conditions of
 Reasonable reserves to absorb yearly fluctuations in income transfer of ownership from landowners to farmworkers,
tenants and other agrarian reform beneficiaries, whether the
Section 3. Definitions. — For the purpose of this Act, unless the context indicates otherwise: disputants stand in the proximate relation of farm operator
Agrarian  redistribution of lands, regardless of crops or fruits produced, and beneficiary, landowner and tenant,
Reform to farmers and regular farmworkers who are landless, or lessor and lessee.
irrespective of tenurial arrangement,
 to include the totality of factors and support services Idle or  any agricultural land not cultivated, tilled or developed to
designed to lift the economic status of the beneficiaries and Abandoned produce any crop nor devoted to any specific economic
 all other arrangements alternative to the physical Land purpose continuously for a period of three (3) years
redistribution of lands, such as immediately prior to the receipt of notice of acquisition by
o production or profit-sharing, the government as provided under this Act,
o labor administration, and o does not include land that has become permanently
o distribution of shares of stocks, or regularly devoted to non- agricultural purposes.
 which will allow beneficiaries to receive a just o does not include land which has become
share of the fruits of the lands they work. unproductive by reason of force majeure or any
other fortuitous event, provided that prior to such
Agriculture,  cultivation of the soil, event, such land was previously used for agricultural
Agricultural  planting of crops, or other economic purpose.
Enterprise or  growing of fruit trees,
Agricultural  including the harvesting of such farm products and
Activity  other farm activities and practices performed by a farmer in
conjunction with such farming operations done by persons Farmer  a natural person whose primary livelihood is cultivation of
whether natural or juridical. (amended) land or the production of agricultural crops, livestock and/or
fisheries either by himself/herself, or primarily with the
Agricultural  land devoted to agricultural activity as defined in this Act and assistance of his/her immediate farm household,
Land  not classified as mineral, forest, residential,  whether the land is owned by him/her, or by another person
commercial or industrial land. under a leasehold or share tenancy agreement or arrangement
with the owner thereof.
Agrarian  any controversy relating to tenurial arrangements, whether
Dispute leasehold, tenancy, stewardship or otherwise, over lands
devoted to agriculture, including disputes concerning
farmworkers' associations or representation of persons in
negotiating, fixing, maintaining, changing, or
seeking to arrange terms or conditions of such
industrial land, not agricultural.
Farmworker  natural person who renders service for value as an employee
or laborer in an agricultural enterprise or farm
 regardless of whether his compensation is paid on a daily, LUZ FARMS V. SEC OF AGRA
weekly, monthly or "pakyaw" basis  Unconstitutional to include lands devoted to raising of livestock, poultry and
 includes an individual whose work has ceased as a swine within agriculture because no land is tilled and no crop is harvested.
consequence of, or in connection with, a pending agrarian  Land is not the primary resource in raising of livestock, poultry or swine.
dispute and who has not obtained a substantially equivalent  Does not sprout from land and are not fruits of land.
and regular farm
employment.
CHAPTER II Coverage
Section 4. Scope. –
Regular  natural person who is employed on a permanent basis by an
 The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of
Farmworker agricultural enterprise or farm.
tenurial arrangement and commodity produced, all public and private agricultural
Seasonal  natural person who is employed on a recurrent, periodic or
lands as provided in Proclamation No. 131 and Executive Order No. 229,
Farmworker intermittent basis by an agricultural enterprise or farm, including other lands of the public domain suitable for agriculture:
whether as a permanent or a
o Provided, That landholdings of landowners with a total area of five (5)
non-permanent laborer, such as "dumaan", "sacada", and the hectares and below shall not be covered for acquisition and distribution
like. to qualified beneficiaries.
Other  farmworker who is not regular or seasonal  More specifically, the following lands are covered by the CARP:
Farmworker farmworker o All alienable and disposable lands of the public domain devoted to or
Cooperatives  organizations composed primarily of small agricultural suitable for agriculture.
producers, farmers, farmworkers, or other agrarian reform  No reclassification of forest or mineral lands to agricultural
beneficiaries who voluntarily organize themselves for the lands shall be undertaken after the approval of this Act until
purpose of pooling land, human, technological, financial or Congress, taking into account ecological, developmental and
other economic resources, and operated on the principle of equity considerations, shall have determined by law, the
one member, one vote. specific limits of the public domain;
 juridical person may be a member of a o All lands of the public domain in excess of the specific limits as
cooperative, with the same rights and duties as a natural determined by Congress in the preceding paragraph;
person. o All other lands owned by the Government devoted to or suitable for
agriculture; and
o All private lands devoted to or suitable for agriculture regardless of the
Rural women  women who are engaged directly or indirectly in farming agricultural products raised or that can be raised thereon.
and/or fishing as their source of livelihood, whether paid or
 A comprehensive inventory system in consonance with the national land use
unpaid, regular or seasonal, or in food preparation, managing
plan shall be instituted by the Department of
the household,
RAISING OF LIVESTOCK, caring POULTRY OR FISH
for the children, NOTsimilar
and other EMBRACED
activities.IN THE
TERM
AGRICULTURE - Lands devoted to raising of livestock, poultry and swine are
exempt from the agrarian reform program because they are
Agrarian Reform (DAR), in accordance with the Local Government Code, for acquisition and distribution.
the purpose of properly identifying and classifying farmlands within one (1) year
from effectivity of this Act, without prejudice to the implementation of the land LANDS COVERED BY THE AGRARIAN REFORM LAW
 All public and private agricultural lands IMPLEMENTATION EXTENDED BY RA 9700 to JUNE 30, 2014
 Other lands of public domain suitable for agriculture

LANDS NOT COVERED BY THE AGRARIAN REFORM LAW

 Private lands with total are of 5 hectares and below
o law says landholdings of landowners with a total area of 5 hectares and
below shall not be covered for acquisition and distribution to qualified Section 6. Retention Limits.
beneficiaries  Except as otherwise provided in this Act, no person may own or retain, directly
 Lands actually, directly and exclusively used for or indirectly, any public or private agricultural land,
o parks, wildlife, forest reserves, reforestation, fish sanctuaries and o the size of which shall vary according to factors governing a viable
breeding grounds, watersheds and mangroves family-size farm, such as
o prawn farms and fishponds (private lands)  commodity produced,
 Lands actually, directly and exclusively used and found to be necessary for  terrain,
o National defense  infrastructure, and
o School sites and campuses  soil fertility as determined by the Presidential Agrarian
o Experimental farm stations operated for educational purposes Reform Council (PARC) created hereunder,
o Seeds and seedling research and pilot production center  But in no case shall retention by the landowner exceed five (5) hectares.
o Church sites and convents appurtenant thereto  Three (3) hectares may be awarded to each child of the landowner, subject to the
o Mosque sites and Islamic centers appurtenant thereto following qualifications: (
o Communal burial grounds and cemeteries o he is at least fifteen (15) years of age; and (
o Penal colonies and penal farms actually worked by the inmates o he is actually tilling the land or directly managing the farm:
o Research and quarantine centers  Provided, that landowners whose lands have been covered by Presidential
o All lands with 18% slope and over Decree No. 27 shall be allowed to keep the areas originally retained by them
thereunder:
 except those already developed.
 Provided, further, that original homestead grantees or their direct compulsory
Section 5. Schedule of Implementation. — The distribution of all lands covered by heirs who still own the original homestead at the time of the approval of this Act
this Act shall be implemented immediately and completed within ten (10) years from shall retain the same areas as long as they continue to cultivate said homestead.
the effectivity thereof.  The right to choose the area to be retained, which shall be compact or
contiguous, shall pertain to the landowner
 Provided, however, that in case the area selected for retention by the landowner
is tenanted,
o tenant shall have the option to choose whether to
 remain in retained area
 he shall be considered a leaseholder and shall lose his
right to be a beneficiary
 be a beneficiary in the same or another agricultural
land with similar or comparable features. time the landowner manifests his choice of the area for retention.
 he loses his right as a leaseholder to the land retained  In all cases, the security of tenure of the farmers or farmworkers on the land prior
by the landowner. to the approval of this Act shall be respected.
o The tenant must exercise this option within a period of (1) year from  Upon the effectivity of this Act, any sale, disposition, 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, CAN SPOUSES RETAIN 5 HECTARES EACH UNDER THE AGRARIAN
 However, that those executed prior to this Act shall be valid only when REFORM LAW
registered with the Register of Deeds within a period of three  Conjugal or Absolute Community – spouses can only retain 5 hectares
(3) months after the effectivity of this Act.  Separation of property – spouses can retain 5 hectares each or a total of 10
o Thereafter, all Registers of Deeds shall inform the Department of hectares
Agrarian Reform (DAR) within thirty (30) days of any transaction
involving agricultural lands in excess of five (5) hectares. LAND OWNER HAS RIGHT TO CHOSE AREA TO BE RETAINED
 Land owners choice of area to be retained prevails as long as:
RETENTION RIGHT OF LANDOWNER o Chosen area must be compact or contiguous
 Landowner has right to retain not more than 5 hectares of his landholdings o Does not exceed retention ceiling of 5 hectares
o maximum retention of 5 hectares  Landowner must exercise his right of retention within 60 days from receipt of
 Retained area does not have to be personally cultivated by the landowner Notice of Coverage
o Cultivation can be done indirectly through labor
administration FAILURE OF LANDOWNER TO EXERCISE RIGHT OF RETENTION - Municipal
Agrarian Reform Officer will designate retained area for landowner if landowner
LANDOWNER WHO ALREADY EXERCISED RETENTION RIGHTS UNDER fails to exercise his right of retention within allotted time
PD 272 CANT EXERCISE RETENTION RIGHTS UNDER CARP
 If landowner chooses to retain 5 hectares under CARL, 7 hectares previously CAN A LANDOWNER EXERCISE RIGHT TO RETENTION OVER THE LAND
retained under PD 27 shall be immediately placed under CARP. WHICH HAS ALREADY BEEN COVERED BY AN EMANCIPATION PATENT
OR CERTIFICATE OF LAND OWNERSHIP AWARD
 Emancipation Patent or Certificate of Land Ownership Award to beneficiaries
2 does not absolutely bar landowner from retaining area covered
DECREEING EMANCIPATION OF TENANTS FROM BONDAGE OF SOIL,
 If landowner is deprived of right to retention, he may file a petition for
TRANSFERRING TO THEM OWNERSHIP OF LAND THEY TILL AND PROVIDING
cancellation of EP or CLOA issued to the tenants
INSTRUMENTS AND MECHANISM THEREFOR o EP or CLOA may be cancelled if land covered is found to be part of
landowner’s retained area

SUPPOSE THE RETENTION AREA CHOSEN BY THE LANDOWNER IS

TENANTED, WHAT HAPPENS TO THE TENANT
 Tenant may choose
o to remain therein or
o be a beneficiary in the same or another agricultural land with similar or
comparable features
 Option must be exercised within a period of 1 year from time landowner
manifests choice of area for retention
 Law refers to an Agricultural Tenant, not just any settler on the land
o Substantial evidence of landlord tenant relationship must exist  in terms of share in produce (share tenancy) or
 Landowner has engaged a person to personally cultivate an  in terms of price certain or ascertainable in produce or
agricultural land in money or both (leasehold tenancy)
 Landowner is compensated o mere occupation or cultivation of an agricultural land will not ipso facto
 make tiller an agricultural tenant other improvements on the landholding as a good father of a family and
perform work in accordance with proven farm practices
IF THE TENANT CHOOSES TO REMAIN IN THE RETAINED AREA, HE o Inform agricultural lessor within a reasonable time of any trespass
BECOMES AN AGRICULTURAL LESSEE committed by 3rd persons upon farm, without prejudice to his direct
 Tenant becomes an Agricultural Lessee, not a tenant and is therefor no longer action against the trespasser
qualified to be an agrarian reform beneficiary o Take reasonable care of work animals and farm implements delivered
 Rights of Agricultural Lessee to him by agricultural lessor and see that they are not used for purposes
o peaceful possession and enjoyment of the land other than those intended or used by another without the knowledge and
o manage and work on land in a manner and method of cultivation and consent of the agricultural lessor
harvest which conform to proven farm practices o Notify agricultural lessor at least 3 days before date of harvesting or
o mechanize all or any phase of his farm work threshing
o deal with millers and processors and attend to issuance of quedans and o Pay lease rental to agricultural lessor when due
warehouse receipts for the produce due him
o be afforded a home lot TERM OF THE LEASE- AGRICULTURAL LEASEHOLD RELATION
o be indemnified for the cost and expenses incurred in the cultivation, IS EXTINGUISHED BY
planting or harvesting and other expenses incidental to improvement of  Abandonment or voluntary surrender of land holding by lessee
his crop in case he surrenders or abandons his landholding for just case  Absence of successor in event of death or permanent incapacity of lessee
or ejected therefrom o Surviving Spouse
o buy the agricultural landholding under reasonable terms and condition o Eldest direct descendant by consanguinity
in case the agricultural lessor decides to sell the same o Next eldest descendant or descendants in order of their age
o redeem the landholding at a reasonable price and consideration in case  Death or incapacity of the lessee does not necessarily extinguish the leasehold
agricultural lessor sold same to a third person without his knowledge relation because the leasehold continues between agricultural lessor and person
 Obligations of Agricultural Lessee who can cultivate the landholding personally
o Cultivate and take care of the farm, growing crops and  Agricultural leasehold is not terminated or extinguished by mere expiration of
the term or period in a leasehold contract
 Not terminated by transfer of ownership or legal possession of the landholding
o if agricultural lessor transfers ownership or legal possession of
landholding, transferee becomes agricultural lessor

EFFECT IF THE TENANT CHOOSES TO BE A BENEFICIARY - Tenant loses his

right to be a lessee of the land retained by the landowner

CHILDREN OF THE LANDOWNER ARE ENTITLED TO 3 HECTARES EACH

 if landowner owns more than 5 hectares of agricultural land, excess area may be o ex. Child already owns 3 hectares of agricultural land, he can still be
awarded to children of landowner to extent of 3 hectares for each child under the awarded 2 hectares from his parents landholding .
following conditions  Land awarded to qualified children of landowners cannot be sold, transferred,
o child is at least 15 years conveyed within a period of 10 years except
o child is actually tilling the land or directly managing the farm o Hereditary succession
 Qualified child who owns less than 5 hectares is still entitled to an award of his o To the government
parents landholding provided that his total area including the awarded area does o land Bank of the Philippines
not exceed the 5 hectares ownership ceiling o other qualified beneficiaries
 Children or spouse can repurchase land from government or land bank within 2 homestead at the time of the approval of this Act shall retain the same
years from date of transfer areas as long as they continue to cultivate said homestead
 Agrarian Reform is a remedial measure pursuant to social justice precept of the
RIGHT OF HOMESTEADERS3 VIS A VIS RIGHT OF TENANTS Constitution but it was not meant to defeat the very purpose of the enactment of
 Constitution and CARL respect the superiority of rights of homesteaders over CA 141/ Homestead Act
rights of tenants o enacted for welfare and protection of the poor
o Art 13 Sec 6 - The State shall apply the principles of agrarian reform or o Gives a needy citizen a piece of land where he may build a modest
stewardship, whenever applicable in accordance with law, in the house for himself and family and plant what is necessary for
disposition or utilization of other natural resources, including lands of substinence and satisfaction of life’s other needs
the public domain under lease or concession suitable to agriculture,  Owners or direct compulsory heirs of lands acquired through homestead grants
subject to prior rights, homestead rights of small settlers, and the rights of Free Patents under CA 141 or the Homestead Act are entitled to retain the
of indigenous communities to their ancestral lands. entire area even if it exceeds 5 hectares as long as
o CARL Sec 6 - that original homestead grantees or their direct o they were cultivating the same at the time of approval of CARL June 15
compulsory heirs who still own the original 1988
o continue to cultivate the same
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a mode of acquiring alienable and disposable lands of the public domain for SEC. 6-A. Exception to Retention Limits.
agricultural purposes conditioned upon actual cultivation and residence  Provincial, city and municipal government ,units acquiring private agricultural
lands by expropriation or other modes of acquisition to be used for actual, direct
and exclusive public purposes, such as roads and bridges, public markets, school
sites, resettlement sites, local government facilities, public parks and barangay
plazas or squares, consistent with the approved local comprehensive land use
plan, shall not be subject to the five (5)-hectare retention limit under this Section
and Sections 70 and 73(a) of Republic Act No. 6657, as amended:
 Provided, That lands subject to CARP shall first undergo the land acquisition
and distribution process of the program:
 Provided, further, That when these lands have been subjected to expropriation,
the agrarian reform beneficiaries therein shall be paid just compensation."

EXPROPRIATION OF PRIVATE AGRICULTURAL LANDS BY LGUS - if LGU

expropriates private agricultural land for actual, direct and exclusive public purposes,
DAR should first subject it to agrarian reform coverage
 land should first be acquired by the national government through DAR Congress for a possible review of limits of land sizes provided in this Act."
 DAR will pay just compensation to landowner
 Thereafter, DAR will distribute the land to agrarian reform beneficiaries IMPORT OF THE LAW
 after distribution, LGs will expropriate the land and pay the agrarian reform  implied recognition that uniform setting of 5 hectare limit for all agricultural
beneficiaries just compensation landholding may not be feasible because of the economic differences for each
agricultural products
SEC. 6-B. Review of Limits of Land Size.  lands planted to different crops cannot be treated identically
 Within (6) months from the effectivity of this Act, the DAR shall submit a
comprehensive study on the land size appropriate for each type of crop to Section 7. Priorities.
 The DAR, in coordination with the Presidential Agrarian Reform Council o Provided, further, That after June 30, 2009, the modes of acquisition
(PARC) shall plan and program the final acquisition and distribution of all shall be limited to voluntary offer to sell and compulsory acquisition:
remaining unacquired and undistributed agricultural lands from the effectivity of o Provided, furthermore, That all previously acquired lands wherein
this Act until June 30, 2014. Lands shall be acquired and distributed as follows: valuation is subject to challenge by landowners shall be completed and
 Phase One: finally resolved pursuant to Section 17 of Republic Act No. 6657, as
o During the (5)-year extension period hereafter all remaining lands amended:
above fifty (50) hectares shall be covered for purposes of agrarian o Provided, finally, as mandated by the Constitution, Republic Act No.
reform upon the effectivity of this Act. 6657, as amended, and Republic Act No. 3844,as amended, only
o All private agricultural lands of landowners with aggregate farmers (tenants or lessees) and regular farmworkers actually tilling the
landholdings in excess of fifty (50) hectares which have already been lands, as certified under oath by the Barangay Agrarian Reform Council
subjected to a notice of coverage issued on or before December 10, (BARC) and attested under oath by the landowners, are the qualified
2008; beneficiaries.
o rice and corn lands under Presidential Decree No. 27; all idle or o The intended beneficiary shall state under oath before the judge of the
abandoned lands; all private lands voluntarily offered by the owners for city or municipal court that he/she is willing to work on the land to
agrarian reform: make it productive and to assume the obligation of paying the
o Provided, That with respect to voluntary land transfer, only those amortization for the compensation of the land and the land taxes
submitted by June 30, 2009 shall be allowed thereon; all lands foreclosed by government financial institutions; all
lands acquired by the Presidential Commission on Good Government
(PCGG); and all other lands owned by the government devoted to or
suitable for agriculture, which shall be acquired and distributed
immediately upon the effectivity of this Act, with the implementation to
be completed by June 30, 2012;
 Phase Two:
o (a) Lands twenty-four (24) hectares up to fifty (50) hectares shall
likewise be covered for purposes of agrarian reform upon the effectivity
of this Act. All alienable and disposable public agricultural lands; all
arable public agricultural lands under agro-forest, pasture and
agricultural leases already cultivated and planted to crops in accordance
with Section 6, Article XIII of the Constitution; all public agricultural
lands which are to be opened for new development and resettlement:
and all private agricultural lands of landowners with aggregate
landholdings above twenty-four (24) hectares up to fifty (50) hectares
which have already been subjected to a notice of coverage
issued on or before December 1O, 2008, to implement principally the June 30, 2013;
rights of farmers and regular farmworkers, who are landless, to own  Phase Three: All other private agricultural lands commencing with large
directly or collectively the lands they till, which shall be distributed landholdings and proceeding to medium and small landholdings under the
immediately upon the effectivity of this Act, with the implementation to following schedule:
be completed by June 30, 2012; and o (a) Lands of landowners with aggregate landholdings above ten (10)
o All remaining private agricultural lands of landowners with aggregate hectares up to twenty- four (24)hectares, insofar as the excess hectarage
landholdings in excess of twenty-four (24) hectares, regardless as to above ten (10) hectares is concerned, to begin on July 1,2012 and to be
whether these have been subjected to notices of coverage or not, with completed by June 30, 2013; and
the implementation to begin on July 1, 2012 and to be completed by o (b) Lands of landowners with aggregate landholdings from the retention
 limit up to ten (10) hectares, to begin on July 1, 2013 and to be these farmers of the aforementioned seminars, symposia, and other similar
completed by June 30, 2014; to implement principally the right of programs shall be encouraged in the implementation of this Act particularly the
farmers and regular farmworkers who are landless, to own directly or provisions of this Section.
collectively the lands they till.  Land acquisition and distribution shall be completed by June 30, 2014 on a
 The schedule of acquisition and redistribution of all agricultural lands covered province-by- province basis. In any case, the PARC or the PARC Executive
by this program shall be made in accordance with the above order o f priority, Committee (PARC EXCOM), upon recommendation by the Provincial Agrarian
which shall be provided in the implementing rules to be prepared by the PARC, Reform Coordinating Committee (PARCCOM), may declare certain provinces
taking into consideration the following: the landholdings wherein the farmers are as priority land reform areas, in which case the acquisition and distribution of
organized and understand ,the meaning and obligations of farmland ownership; private agricultural lands therein under advanced phases may be implemented
the distribution of lands to the tillers at the earliest practicable time; the ahead of the above schedules on the condition that prior phases in these
enhancement of agricultural productivity; and the availability of funds and provinces have been completed: Provided, That notwithstanding the above
resources to implement and support the program: Provided, That the PARC schedules, phase three (b) shall not be implemented in a particular province until
shall design and conduct seminars, symposia, information campaigns, and other at least ninety percent (90%) of the provincial balance of that particular province
similar programs for farmers who are not organized or not covered by any as of January 1, 2009 under Phase One, Phase Two (a), Phase Two (b),,and
landholdings. Completion by Phase Three (a), excluding lands under the jurisdiction of the Department of
Environment and Natural Resources (DENR), have been successfully
completed.
 The PARC shall establish guidelines to implement the above priorities and
distribution scheme, including the determination of who are qualified
beneficiaries: Provided, That an owner-tiller may be a beneficiary of the land
he/she does not own but is actually cultivating to the extent of the difference
between the area of the land he/she owns and the award ceiling of three (3)
hectares: Provided, further, That collective ownership by the farmer
beneficiaries shall be subject to Section 25 of Republic Act No. 6657, as
amended: Provided, furthermore, That rural women shall be given the
opportunity to participate in the development planning and implementation of
this Act: Provided, finally, That in no case should the agrarian reform
beneficiaries' sex, economic, religious, social, cultural and political attributes
adversely affect the distribution of lands."

ACQUISITION AND DISTRIBUTION SCHEME FOR ALL REMAINING

AGRICULTURAL LANDS DURING 5 YEAR EXTENSION PERIOD UP TO
JUNE 30 2014
 Order of Priority
o Lands with area of more than 50 hectares to be complete
by June 30 2012 developed to produce any crop not devoted to any specific
 those which already have been subjected to a Notice of economic purpose continuously for a period of 3 years
Coverage on or before Dec 10 2008 immediately prior to receipt of notice of acquisition by
 rice and corn lands government
 idle or abandoned lands o does not include land that has permanently or
 any agricultural land not cultivated, tilled or regularly devoted to non agricultural purposes
 o does not include land that has becom been subjected to a notice of coverage issued on or before Dec
unproductive due to force majeure or any 10 2008
other fortuitous event provided that prior to  all remaining private agricultural lands regardless as to
such event, land was used for agricultural or whether they have been subjected to notices of coverage
other economic purpose o Lands with an area of more than 10 hectares up to 24 hectares to be
 private lands voluntarily offered by owners for agrarian reform completed by June 30 2013
 lands foreclosed by government financial o Lands from retention limit up to 10 hectares to be complete by June 30
institutions 2013
 lands acquired by Presidential Commission on Good  Farmer (tenants or lessees) and regular farmworkers actually tilling the landsare
Government considered to be qualified beneficiaries only if
 all other lands owned by government devoted to or suitable for o certified under oath by the Barangay Agrarian Reform Council and
agriculture o attested under oath by landowners
o Lands with an area of 24 hectares up to 50 hectares to be complete by o Intended beneficiary shall state under oath before judge of city of
June 30 2013 municipality court that he is willing to work on the land to make it
 all alienable and disposable public agricultural lands productive and to assume obligation of paying amortization for
 all arable public agricultural lands under agroforest, pasture compensation of land and land taxes thereon
and agricultural leases already cultivated and planted to crops
in accordance in Sec 6 Art 13 of the Consti Section 8. Multinational Corporations.
 all public agricultural lands which are to be opened for new  All lands of the public domain leased, held or possessed by multinational
development and resettlement corporations or associations, and other lands owned by the government or by
 all private agricultural lands which have already government-owned or controlled corporations, associations, institutions, or
entities, devoted to existing and operational agri-business or agro-industrial
enterprises, operated by multinational corporations and associations, shall be
programmed for acquisition and distribution immediately upon the effectivity of
this Act, with the implementation to be completed within three (3) years.
 Lands covered by the paragraph immediately preceding, under lease,
management, grower or service contracts, and the like, shall be disposed of as
follows:
o Lease, management, grower or service contracts covering such lands
covering an aggregate area in excess of 1,000 hectares, leased or held
by foreign individuals in excess of 500 hectares are deemed amended to
conform with the limits set forth in Section 3 of Article XII of the
Constitution.
o Contracts covering areas not in excess of 1,000 hectares in
the case of such corporations and associations, and 500 hectares, in the which transfer shall be immediately commenced and implemented and
case of such individuals, shall be allowed to continue under their completed within the period of three (3) years mentioned in the first
original terms and conditions but not beyond August 29, 1992, or their paragraph hereof.
valid termination, whichever comes sooner, after which, such o In no case will such leases and other agreements now being implemented
agreements shall continue only when confirmed by the appropriate extend beyond August 29, 1992, when all lands subject hereof shall have
government agency. Such contracts shall likewise continue even after been distributed completely to qualified beneficiaries or awardees.
the lands has been transferred to beneficiaries or awardees thereof,  Such agreements can continue thereafter only under a new contract between the
 government or qualified beneficiaries or awardees, on the one hand, and said association or any other proper party, any agreement existing at the time this Act
enterprises, on the other. takes effect between the former and the previous landowner shall be respected
 Lands leased, held or possessed by multinational corporations, owned by private by both the workers' cooperative or association and the corporation, business,
individuals and private non-governmental corporations, associations, institutions association or such other proper party.n no case shall the implementation or
and entities, citizens of the Philippines, shall be subject to immediate application of this Act justify or result in the reduction of status or diminution of
compulsory acquisition and distribution upon the expiration of the applicable any benefits received or enjoyed by the worker- beneficiaries, or in which they
lease, management, grower or service contract in effect as of August 29, 1987, may have a vested right, at the time this Act becomes effective.
or otherwise, upon its valid termination, whichever comes sooner, but not later  The provisions of Section 32 of this Act, with regard to production and income-
than after ten (10) years following the effectivity of the Act. However during the sharing shall apply to farms operated by multinational corporations.
said period of effectivity, the government shall take steps to acquire these lands  During the transition period, the new owners shall be assisted in their efforts to
for immediate distribution thereafter. learn modern technology in production. Enterprises which show a willingness
 In general, lands shall be distributed directly to the individual worker- and commitment and good-faith efforts to impart voluntarily such advanced
beneficiaries. technology will be given preferential treatment where feasible.
 In case it is not economically feasible and sound to divide the land, then they  In no case shall a foreign corporation, association, entity or individual enjoy any
shall form a workers' cooperative or association which will deal with the rights or privileges better than those enjoyed by a domestic corporation,
corporation or business association or any other proper party for the purpose of association, entity or individual.
entering into a lease or growers agreement and for all other legitimate purposes. AGRICULTURAL LANDS LEASED, HELD OR POSSESSED BY
Until a new agreement is entered into by and between the workers' cooperative MULTINATIONAL CORPORATIONS ARE COVERED BY THE CARL
or association and the corporation or business ACQUISITION AND DISTRIBUTION
 Land shall be distributed directly to individual worker beneficiaries
 If not economically feasible and sound to divide the land, individual worker
beneficiaries shall form a workers cooperative or association which will deal
with the corporation by way of lease growers agreement and other legitimate
purposes

Section 9. Ancestral Lands.

 For purposes of this Act, ancestral lands of each indigenous cultural community
shall include, but not be limited to, lands in the actual, continuous and open
possession and occupation of the community and its members: provided, that the
Torrens Systems shall be respected.
 The right of these communities to their ancestral lands 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 ownership, land use,
and the
modes of settling land disputes of all these communities must be recognized and other national laws.
respected. ANCESTRAL LAND DEFINED
 Any provision of law to the contrary notwithstanding, the PARC may suspend  Lands of public domain that have been in open, continuous, exclusive and
the implementation of this Act with respect to ancestral lands for the purpose of notorious occupation and cultivation by members of the National Cultural
identifying and delineating such lands: provided, that in the autonomous regions, Communities by themselves or through their ancestors, under a bona fide claim of
the respective legislatures may enact their own laws on ancestral domain subject acquisition of ownership according to their customs and traditions for a period of at
to the provisions of the Constitution and the principles enunciated in this Act and least 30 years before date of approval of PD 410
 Lands occupied, possessed and utilized by individuals, families and clans who Section 10. Exemptions and Exclusions.
are members of indigenous cultural communities or indigenous peoples since  Lands actually, directly and exclusively used for parks, wildlife, forest reserves,
time immemorial, by themselves or through their predecessors in interest, under reforestation, fish sanctuaries and breeding grounds, watersheds and mangroves
claims of individual or traditional group ownership, continuously to the present shall be exempt from the coverage of this Act.
except when interrupted by war, force majeure or displacement by force, deceit,  Private lands actually, directly and exclusively used for prawn farms and
stealth or as a consequence of government projects and other voluntary dealings, fishponds shall be exempt from the coverage of this Act: Provided,
entered into by government and private individuals/corporations, including by o That said prawn farms and fishponds have not been distributed and
not limited to residential lots, rice terraces or paddies, private forests, swidden Certificate of Land Ownership Award (CLOA) issued to agrarian
farms and tree lots reform beneficiaries under the Comprehensive Agrarian Reform
Program.
ANCESTRAL LANDS EXEMPTED FROM THE AGRARIAN REFORM LAW o In cases where the fishponds or prawn farms have been subjected to the
 CARL recognizes and respect systems of land ownership, land use and modes of Comprehensive Agrarian Reform Law, by voluntary offer to sell, or
settling land disputes of all indigenous cultural communities or indigenous commercial farms deferment or notices of compulsory acquisition, a
people in line with self determination and autonomy simple and absolute majority of the actual regular workers or tenants
 Autonomous region – respective legislatures may enact own laws on ancestral must consent to the exemption within one (1) year from the effectivity
domains subject to of this Act. When the workers or tenants do not agree to this exemption,
o Constitution the fishponds or prawn farms shall be distributed collectively to the
o principles in CARL and worker-beneficiaries or tenants who shall form a cooperative or
o other national laws association to manage the same.
o In cases where the fishponds or prawn farms have not been subjected to
the Comprehensive Agrarian Reform Law, the consent of the farm
workers shall no longer be necessary, however, the provision of Section
32-A hereof on incentives shall apply."
 Lands actually, directly and exclusively used and found to be necessary for
national defense, school sites and campuses, including experimental farm
stations operated by public or private schools for educational purposes, seeds
and seedling research and pilot production center, church sites and convents
appurtenant thereto, mosque sites and Islamic centers appurtenant thereto,
communal burial grounds and cemeteries, penal colonies and penal farms
actually worked by the inmates, government and private research and quarantine
centers and all lands with eighteen percent (18%) slope and over, except those
already developed, shall be exempt from the coverage of this
Act. Rizal
o tax declaration: Agricultural
LAND CLASSIFICATION IN THE TAX DECLARATION IS NOT CONCLUSIVE  DAR subject the land to CARP
 tax declarations are not the sole basis of land classification  Landowners filed an application for exemption from agrarian reform
 even if tax declaration classifies land as agricultural, the tax declaration is still o Non agricultural because it is within the residential and forest
refutable conservation zones of the town plan/zoning ordinance
 DAR denied application based on tax declaration
REPUBLIC V. CA 2000  HELD DAR was wrong in denying the application for exemption by mere fact
 Landowners Green City Estate and Development Court: 112 hectares in that the tax declaration classified the land as agricultural
 Tax declarations are not the sole basis for the classification of land  if land with at least 18% slope was previously classified as alienable or
 DAR AO asks for other documents to be submitted when applying for disposable but not yet titled  reverted to category of public forest
exemption from CARP  if land has been covered by an approved public land application or occupied
openly, continuously, adversely and publicly for a period of not less than 30
LANDS CLASSIFIED AS NON AGRICULTURAL PRIOR TO EFFECTIVITY OF years as effectivity of Forestry Reform Code  remains as alienable or
CARL ARE NOT COVERED disposable on condition that land is kept in vegetative state sufficient to prevent
 Land already classified for residential, commercial or industrial use by HLRUB erosion and adverse effects on lowlands and streams
prior to CARL are not subject to agrarian Reform
 Lands converted prior to June 15 1988 SCHOOL SITES AND CAMPUSES
 DAR is bound by such conversions  Exempted if lands are
o actually, directly and exclusively used and
LANDS WITH AT LEAST 18% SCOPE ARE EXEMPTED FROM COVERAGE o found necessary by the SCHOOL for school sites and campuses
OF AGRARIAN REFORM  DAR has no right to substitute judgment of discretion for the determination of
 reason is to prevent adverse effects on lowlands and streams due to soil erosions the necessity of the school
 considered permanent forests or forest reserves, regardless of condition of
vegetative cover, occupancy or use of any kind  not alienable or disposable CMU V. DARAB
 Landowner: Central Mindanao University
o CMU – agricultural institution
o 3000 hectares of land
 Livelihood program: leased 4 to 5 hectares each to faculty and employees in
groups of 5s
o lowland rice project
 Faculty and Employees filed a complaint before DAR , Asking DAR to declare
them as tenants under CARL, so that they could become agrarian reform
beneficiaries. DAR did not agree.
 DAR then segregated 400 hectares of suitable, compact and contiguous portions
of CMU land and subjected it to agrarian reform coverage for distribution to
qualified beneficiaries on the ground that it was not directly, actually and
exclusively used for school site.
 HELD: DAR WAS INCORRECT IN SEGREGATING THE 400 HECTARES
OF CMU LAND.
 CMU is a school established to promote agriculture and industry, the need for a
vast track of land for future expansion is obvious.
 The determination of when and what lands are found to be necessary for use the
CMU, the school is in the best postion to
resolve and answer the question and pass upon the problem of its needs in
relation to its policies. Sec. 11. Commercial Farming.
 Commercial farms, which are private agricultural lands devoted to saltbeds, fruit
SECRETARY OF AGRARIAN REFORM HAS JURISDICTION TO EXEMPT A farms, orchards, vegetable and cut-flower farms, and cacao, coffee and rubber
PROPERTY FROM AGRARIAN REFORM COVERAGEs plantations, shall be subject to immediate compulsory acquisition and distribution
 after ten (10) years from the effectivity of this Act.  Direct payment scheme DPS
 In the case of new farms, the ten-year period shall begin from the first year of
commercial production and operation, as determined by the DAR. MANNER OF DISTRIBUTION OF COMMERCIAL FARMS- individually or
 During the ten-year period, the Government shall initiate steps necessary to collectively
acquire these lands, upon payment of just compensation for the land and the  Individual Beneficiaries
improvements thereon, preferably in favor of organized cooperatives or o 3 hectares each or minimum of 1 hectare each if land is not sufficient to
associations which shall thereafter manage the said lands for the workers- accommodate them
beneficiaries. o Order of priority in distribution
COMMERCIAL FARMS ARE LANDS DEVOTED TO  Agricultural lessees and share tenants
 Saltbeds  Regular farm workers
 Fruit farms  Seasonal farm workers
 Orchards  Other farm workers
 Vegetable and cut flower farms  actual tillers or occupants of public lands
 Cacao, coffee, and rubber plantations  collectives or cooperatives of above beneficiaries
 others directly working on the land
IMPLEMENTATION OF AGRARIAN REFORM LAW DEFERRED ON  Collective Beneficiaries – if not economically feasible and sound to divide the
COMMERCIAL FARMS - Compulsory acquisition and distribution of commercial land
farms has been deferred for 10 years o Beneficiaries will be obliged for form a workers cooperative or
 from effectivity of CARL ( June 1988) - for farms already existing when law association
took effect  Agrarian reform beneficiaries may recommend that infrastructure facilities and
 from 1st year of commercial production and operation - for new farms improvements necessary and beneficial to operation of the farm be subject to
acquisition, to be determined by DAR.
MODE OF ACQUISITION OF COMMERCIAL FARMS o Includes buildings, roads, machinery, receptacles, instruments or
 Voluntary offer to sell VOS implements permanently attached to the land
 Compulsory acquisition CA
QUALIFICATIONS OF COMMERCIAL FARM BENEFICIARIES- Agrarian
reform beneficiaries for acquired commercial farms
 18 years old at time of filing of application as beneficiary
 Willingness, aptitude and ability to cultivate and make land productive
 Must have been employed in commercial farm between June 15 1988 or upon
expiration of deferment
 Farm workers who have worked the longest on the land continuously will be
given priority

WHO ARE DISQUALIFIED TO BECOME COMMERCIAL FARM

BENEFICIARIES
 Farm workers who have retired from service, whether optional or
compulsory  Farm workers, lessees, or tenants who waive or refuse to be a beneficiary
 Farm workers who have resigned from their employment with the farm  Farm workers, lessees or tenants who have committed a violation of agrarian
 Farm workers who have been dismissed for cause reform laws and regulations
  Management Contract
FREEDOM OF BENEFICIARIES TO CHOOSE THE TYPE OF AGRIBUSINESS o Agrarian reform beneficiaries or cooperative or association hire the
 Choose the type of agribusiness venture arrangement that will maintain the services of landowner or investor to manage and operate the farm in
economic viability of the farm exchange for fixed wages or commission
 To market their products or enter into marketing arrangements  Build- Operate- Transfer Scheme
 To avail of services or assistance of individuals, associations or non o Project proponent undertakes the financing and construction of a given
governmental organizations in negotiating for the most advantageous infrastructure facility and operation and maintenance thereof for an
agribusiness venture arrangement, enterprise development and capability agreed period of time not exceeding 25 years subject to extension
building
RIGHT OF RETENTION OVER COMMERCIAL FARMS
TYPES OF AGRIBUSINESS VENTURE ARRANGEMENTS WHICH  Owners of commercial farms, individual or corporate, are entitled to retention
COMMERCIAL FARM BENEFICIARIES OR COOPERATIVES MAY ENTER rights under Sec 6 of CARL
INTO (DAR AO 09 1988)
 Joint Venture Arrangement CHAPTER III Improvement of Tenurial and Labor Relations Section
o Company is organized and co-owned by an investor and agrarian 12. Determination of Lease Rentals. - In order to protect and improve the tenurial
reform beneficiaries through their cooperative or association and economic status of the farmers in tenanted lands under the retention limit and
o Investor may provide management and marketing skills, technology lands not yet acquired under this Act, the DAR is mandated to determine and fix
infrastructure and capital immediately the lease rentals thereof in accordance with Section 34 of Republic Act
o Agrarian reform beneficiaries contribute through labor, usufructuary, No. 3844, as amended: provided, that the DAR shall immediately and periodically
rights to land and capital infusion review and adjust the rental structure for different crops, including rice and corn, or
 Lease Arrangement different regions in order to improve progressively the conditions of the farmer,
o Agrarian reform beneficiaries through their cooperatives or association tenant or lessee.
enter into a contract of lease with the landowner or investor POWER OF DAR TO FIX LEASE RENTALS - Tenant may choose to remain in
o Lessee controls farm operations within an agreed period of time not portion retained by landowner, in which case he will no longer be a tenant but a
exceeding 10 years, extendible by agreement lessee (Sec. 6). To protect economic status of farmer, DAR can determine and fix the
 Contract Growing/Growership Arrangement lease rental,
o Agrarian reform beneficiaries or cooperative produce certain crops for  For lands devoted to rice and other crops
an investor or agribusiness firm which buys the produce at pre arranged o 25% of average normal harvest after deducting amount used for seeds
terms and cost of harvest or threshing
o if no normal harvests estimated normal harvest during 3 agricultural
years immediately preceding the date the leasehold was established
 For sugar cane lands
o 24% f average normal harvest less value of cost of seeds/cane points,
harvesting, loading, hauling and or trucking fee and cost of processing
 For coconut lands arrangement and any farm covered by Sections 8 and 11 hereof is hereby mandated
o 25% of average normal harvest for a specific area for preceding 3 to execute within ninety (90) days from the effectivity of this Act, a production-
calendar years less value of production costs sharing plan, under guidelines prescribed by the appropriate government agency.
 Nothing herein shall be construed to sanction the diminution of any benefits such
Section 13. Production-Sharing Plan. as salaries, bonuses, leaves and working conditions granted to the employee-
 Any enterprise adopting the scheme provided for in Section 32 or operating beneficiaries under existing laws, agreements, and voluntary practice by the
under a production venture, lease, management contract or other similar enterprise, nor shall the enterprise and its employee-beneficiaries be prevented
 from entering into any agreement with terms more favorable to the latter. CHAPTER IV
APPLICABILITY OF THE LAW Obligations to a production sharing plan applies Registration
only to Section 14. Registration of Landowners. — Within one hundred eighty
 Farms operating under a production venture, lease, management contract or (180) days from the effectivity of this Act, all persons, natural or juridical, including
other similar arrangement government entities, that own or claim to own agricultural lands, whether in their
 Farms leased or operated by multinational corporations names or in the name of others, except those who have already registered pursuant to
 Commercial farms Executive Order No. 229, who shall be entitled to such incentives as may be provided
o Those devoted to salt beds, fruit farms, orchards, vegetable and cut for the PARC, shall file a sworn statement in the proper assessor's office in the form
flower farms, cacao, coffee or rubber plantations to be prescribed by the DAR, stating the following information:
 the description and area of the property;
 the average gross income from the property for at least three (3) years;
 the names of all tenants and farmworkers therein;
 the crops planted in the property and the area covered by each crop as of June 1,
1987;
 the terms of mortgages, lease, and management contracts subsisting as of June 1,
1987, and
 the latest declared market value of the land as determined by the city or
provincial assessor.
PURPOSE OF SWORN STATEMENT - Help DAR identify the lands and their
owners for effective implementation of agrarian reform program

Section 15. Registration of Beneficiaries. — The DAR in coordination with the

Barangay Agrarian Reform Committee (BARC) as organized in this Act, shall
register all agricultural lessees, tenants and farmworkers who are qualified to be
beneficiaries of the CARP. These potential beneficiaries with the assistance of the
BARC and the DAR shall provide the following data:
 names and members of their immediate farm household;
 owners or administrators of the lands they work on and the length of tenurial
relationship;
 location and area of the land they work;
 crops planted; and
 their share in the harvest or amount of rental paid or wages received.
A copy of the registry or list of all potential CARP beneficiaries in the barangay shall
be posted in the barangay hall, school or other public buildings in the barangay
where it shall be open to inspection by the
public at all reasonable hours. CHAPTER V Land Acquisition
PURPOSE OF REGISTRATION OF AGRICULTURAL LESSEES, TENANTS Section 16. Procedure for Acquisition and Distribution of Private Lands.— For
AND purposes of acquisition of private lands, the following procedures shall be followed:
FARM WORKERS –Develop a databank of potential and qualified beneficiaries for  After having identified the land, the landowners and the beneficiaries, the DAR
effective implementation of the agrarian reform program shall send its notice to acquire the land to the owners thereof, by personal delivery
or registered mail, and post the same in a conspicuous place in the municipal
 building and barangay hall of the place where the property is located. Said the DAR shall take immediate possession of the land and shall request the proper
notice shall contain the offer of the DAR to pay a corresponding value in Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name of
accordance with the valuation set forth in Sections 17, 18, and other pertinent the Republic of the Philippines. The DAR shall thereafter proceed with the
provisions hereof. redistribution of the land to the qualified beneficiaries.
 Within thirty (30) days from the date of receipt of written notice by personal  Any party who disagrees with the decision may bring the matter to the court of
delivery or registered mail, the landowner, his administrator or representative proper jurisdiction for final determination of just compensation.
shall inform the DAR of his acceptance or rejection of the offer. COMPULSORY ACQUISITION OF AGRICULTURAL LANDS PROCESS
 If the landowner accepts the offer of the DAR, the Land Bank of the Philippines  Identification by DAR of land, landowner and beneficiary
(LBP) shall pay the landowner the purchase price of the land within thirty (30)  Notice by DAR to landowner about compulsory acquisition and price offer by
days after he executes and delivers a deed of transfer in favor of the government o personal notice or by registered mail and
and surrenders the Certificate of Title and other muniments of title. o posting of notice in a conspicuous place in barangay hall and municipal
 In case of rejection or failure to reply, the DAR shall conduct summary hall where land is located
administrative proceedings to determine the compensation for the land requiring  Reply by landowner about his acceptance or refection of offered price
the landowner, the LBP and other interested parties to submit evidence as to the o if landowner accepts – Land Bank will pay the landowner within 30
just compensation for the land, within fifteen (15) days from the receipt of the days from execution and delivery of Deed of Transfer
notice. After the expiration of the above period, the matter is deemed submitted o if landowner rejects offer – DAR will determine just compensation thru
for decision. The DAR shall decide the case within thirty (30) days after it is summary proceedings
submitted for decision. o if landowner disagrees with DAR decision – regular courts of justice for
 Upon receipt by the landowner of the corresponding payment or, in case of final determination of just compensation
rejection or no response from the landowner, upon the deposit with an accessible  Taking of immediate possession of land by DAR
bank designated by the DAR of the compensation in cash or in LBP bonds in o if landowner receives corresponding payment or
accordance with this Act, o landowner does not respond to notice of acquisition
 request by DAR to Register of Deeds to issue Transfer Certificate of Title to
Republic of Philippines
 Distribution of land to qualified beneficiaries

TWO NOTICES TO THE LANDOWNER ARE REQUIRED FOR VALIDITY OF

IMPLEMENTATION
 Notice of Coverage
o pursuant to DAR AO 12 1989
o in compliance with administrative due process
 Notice of Acquisition
o pursuant to Sec 16 of CARL
LAND ACQUISITION PROCEDURE SHOULD BE STRICTLY CONSTRUED WHEN TITLE OR OWNERSHIP OF THE LAND IS TRANSFERRED TO THE
 Reason: Land acquisition under agrarian reform law is an extraordinary method STATE
of expropriation  Only upon full payment of just compensation
 Failure of DAR or any of its agencies to comply with proper procedure for  Title and ownership remains with landowner until final
expropriation is a violation of constitutional due process and in effect arbitrary, determination of just compensation and fully payment
capricious, whimsical and tainted with grave abuse of discretion  Mere fact that DAR deposited offered price with Land Bank does not warrant
o ex. No notice of coverage issued cancellation of owner’s title
 real, substantial, full and ample.
OPENING OF TRUST ACCOUNT DOES NOT CONSTITUTE PAYMENT - Law  Correct determination of amount to be paid to the landowner and prompt
requires just compensation to be paid in cash and Land Bank bonds, not trust payment
accounts. o payment within a reasonable time from taking
o immediate deposit and release of provisional
CHAPTER VI Compensation compensation
Section 17. Determination of Just Compensation. —In determining just o full payment of finally adjudged just compensation
compensation, the cost of acquisition of the land, the value of the standing crop, the o without prompt payment, compensation is not just because landowner
current: value of like properties, its nature, actual use and income, the sworn is made to suffer consequence of being immediately deprived on land
valuation by the owner, the tax declarations, the assessment made by government while being made to wait before receiving amount necessary to cope
assessors, and seventy percent (70%) of the zonal valuation of the Bureau of Internal with his loss
Revenue (BIR), translated into a basic formula by the DAR shall be considered, o ex. of not prompt payment
subject to the final decision of the proper court. The social and economic benefits  reimbursement is conditioned on Land Bank’s approval and
contributed by the farmers and the farmworkers and by the Government t o the release of the amount is made to depend upon compliance with
property as well as the nonpayment of taxes or loans secured from any government documentary requirements
financing institution on the said land shall be considered as additional factors to  partial payment of just compensation
determine its valuation."
CONCEPT OF JUST COMPENSATION FACTORS USED IN VALUATION OF LANDS
 Defined as the full and fair equivalent of the property taken form its owner by  Capital Net Income CNI
the expropriator o based on land use and productivity
 Measure is not takers gain, but the owners loss  Comparable Sales CS
 Equivalent to be rendered for the property to be taken shall be o 70% of BIR zonal value
 Market Value MV
o based on tax declaration
FORMULAS
When all factors CNI x 0.6 + CS x 0.30 + MV x 0.10 = Land Value
are present
When CNI factor is CS x 0.90 + MV x 0.10 = Land Value
not presernt
When CS factor is not CNI x 0.90 + MV x 0.10 = Land Value
present
Formula when CS MV x 2 = Land Value
and CNI are not
present

RECKONING OF VALUATION
 General Rule Basis for just compensation is the value of property
at time it was taken from owner and appropriated to the government possession
o if government takes possession of land before institution of  not the time of filing of the complaint
expropriation proceedings, value shall be fixed as of time of taking of o Time of taking
  stage when title is transferred to government or beneficiaries ROLE OF DARAB
AND  DARAB or Provincial Agrarian Reform Adjudicators PARAD can conduct
o the time when agricultural land voluntarily offered by landowner was summary administrative proceeding for preliminary determination of just
approved by PARC for agrarian reform coverage through stock compensation in order to determine whether land valuation computations of
distribution scheme Land Bank are in accordance with rules or administrative orders.
 However, if there is undue delay in payment  value of property should be  Preliminary proceedings of land valuation for purpose of determination of just
determined at time of full payment of just compensation compensation for acquisition shall be conducted by
o Lubrica v. Land Bank o PARAD – initial land valuation of Land Bank is less than 10M
 Lubrica was deprived of property in 1972 but as of 2006, o Regional Agrarian Reform Adjudicators – initial land valuation of Land
Lubrica was still not justly compensated Bank is 50M
 inequitable to determine just compensation based on time of o DARAB – initial land valuation of Land Bank is above 50M
taking considering the failure to determine just compensation  On event of non availability, inhibition, or disqualification of designated
for a considerable length of time PARAD  RARAD concerned may conduct preliminary proceedings of land
 just compensation should be full and fail equivalent of the valuation notwithstanding that jurisdictional amount is less than 10M
property taken from its owner by the expropriator, the  On account of non-availability, inhibition or disqualification of the RARAD
equivalent being real, substantial, full and ample. concerned, DARAB may conduct the preliminary proceedings of land valuation
or designate the same to an Adjusticator form among the PARADs in the region.
PROCEDURE FOR DETERMINATION OF JUST COMPENSATION
 Land Bank determines value of lands VALUATION SET BY DAR NOT CONCLUSIVE
 DAR makes an offer to landowner based on the Land Bank determination  Valuation set by Land Bank is not conclusive  Landowner can contest in
 If landowner rejects proper court, the RTC designated as Special Agrarian Court
o DAR conducts summary administrative proceedings to determine  Sec 6 Rule 19 of 2006 DARAB Rules of Procedure. Filing of Original Action
compensation for land by requiring landowner, Land Bank and other with the Special Agrarian Court for Final Determination.
interested parties to submit evidence for just compensation o The party who disagrees with the decision of the Board/Adjudicator
 Party who disagrees with decision of adjudicator may bring the matter to RTC may contest the same by filing an original action with the Special
designated as Special Agrarian Court for final determination of just Agrarian Court (SAC) having jurisdiction over the subject property
compensation within fifteen (15) days from his receipt of the Board/Adjudicator’s
decision.
o Immediately upon filing with the SAC, the party shall file a Notice of
Filing of Original Action with the Board/Adjudicator, together with a
certified true copy of the petition filed with the SAC.
o Failure to file a Notice of Filing of Original Action or to
submit a certified true copy of the petition shall render the decision of
the Board/Adjudicator final and executory. CONSENT OF BENEFICIARY NOT NECESSARY IN DETERMINING JUST
o Upon receipt of the Notice of Filing of Original Action or certified true COMPENSATION OF LAND OWNER
copy of the petition filed with the SAC, no writ of execution shall be  Under Sec 18 of CARL, the only parties in valuation of land
issued by the Board/Adjudicator. o land owner
o DAR
COURTS CANNOT DISREGARD FORMULA - Factors for determination of just o Land Bank
compensation, which the DAR converted into a formula are mandatory and not mere  law does not mention participation of farmer beneficiary
guidelines which the RTC may disregard  Land Bank cannot refuse to pay valuation set by PARAD simply because consent
 of farmer beneficiary was not obtained in fixing just compensation Shares of stock in government-owned or controlled corporations, LBP preferred
shares, physical assets or other qualified investments in accordance with guidelines
Section 18. Valuation and Mode of Compensation. — The LBP shall compensate set by the PARC;
the landowner in such amounts as may be agreed upon by the landowner and the  Tax credits which can be used against any tax liability;
DAR and the LBP, in accordance with the criteria provided for in Sections 16 and  LBP bonds, which shall have the following features:
17, and other pertinent provisions hereof, or as may be finally determined by the o Market interest rates aligned with 91-day treasury bill rates. Ten
court, as the just compensation for the land. percent (10%) of the face value of the bonds shall mature every year
The compensation shall be paid on one of the following modes, at the option of the from the date of issuance until the tenth (10th) year: provided, that
landowner: should the landowner choose to forego the cash portion, whether in full
 Cash payment, under the following terms and conditions; or in part, he shall be paid correspondingly in LBP bonds;
(a) For lands above fifty (50) hectares, insofar — Twenty-five percent (25%) cash, o the binalanscmeatllo-abned
Transferability and negotiability. Such LBP bonds may be used by the
as the excess hectarage is paid in government financial instrumpenrotvs
landowner, ince or regi in interest or his assigns, up to the amount of
his successors
concerned. negotiable at any time. their faceare paid;for any of the following:
value,
(b) For lands above twenty-four (24) hectares —  Acquisition of land or other real properties of the government,
Thirty percent (30%) cash, the balancPeaytombeentpfaoirdvar
and up to fifty (50) hectares. including assets
in government financial instruments nperogvoitdiaebdl,e under the Asset Privatization Program and
tahtat
any time. other assets foreclosed
purposes will be by government financial institutions in
(c) For lands twenty-four (24) hectares and below. — the same province
Thirty-five percent (35%) cash, the batlhaenceotuotsbteandin or region where the lands for which the
bonds werepro
paid in government financial instrumiennstrsuments: paid are situated;
negotiable at any time.  Acquisition
determine theofp shares of stock of government-owned or
-controlled corporations or shares of stocks owned by the
government in private corporations;
 Substitution for surety or bail bonds for the provisional release
of accused persons, or performance bonds;
 Security for loans with any government financial institution,
provided the proceeds of the loans shall be invested in an
economic enterprise, preferably medium-scale industry, in the
same
on as the land for which the bonds

ious taxes and fees to government; the use

of these bonds for these limited to a certain
percentage of g balance of the financial
vided, further, that the PARC shall
ercentage mentioned above;
 Payment for tuition fees of the immediate family of the protect the economy.
original bondholder in government universities, colleges, trade MODE OF PAYMENT
schools, and other institutions;  Cash and Financial instruments of the government
 Payment for fees of the immediate family of the original o lands above 50 hectares
bondholder in government hospitals; and  25% cash
 Such other uses as the PARC may from time to time allow.  75% government financial instruments
 In case of extraordinary inflation, the PARC shall take appropriate measures to o lands above 24 hectares
  30% cash big landowners who can afford bigger balance in bonds and other
 70% government financial instruments things of value
o lands above 24 hectares and below o cash and the other things of value equivalent to the amount of just
 35% cash compensation
 65% government financial instruments
 Shares of stocks in government owned or controlled corporations, preferred FEATURES OF LAND BANK BONDS
shares of land bank, physical assets or other qualified investments  10% of face value of bonds shall mature every year from date of issuance until
 Tax credits which can be used against tax liabilities 10th year
 Land bank bonds which shall mature every year until the 10th year  bonds are transferable and negotiable
 bonds can be used for any of the following
LANDOWNER CANNOT INSIST IN CASH PAYMENT ONLY o acquisition of land or other real properties of government, including
 Landowner cannot insist in cash payment only because it is not sanctioned by  assets under the Asset Privatization Program and
the CARL  other assets foreclosed by government financial institutions in
 law says just compensation shall be paid partly in cash and remainder in terms of the same province or region where the lands for which the
bonds, government financial instruments, shares of stocks in GOCC, tax credits bonds were paid are situated
or Land Bank bonds o acquisition of land shares of government owned or controlled
 Association of Small Landowners vs. Sec of Agrarian reform - rationalized corporations or shares of sticks owned by government in private
reason why it cannot be cash payment only corporations
o not ordinary expropriation where only a specific property of relatively o bail bonds for provisional release of accused persons or performance
bonds
limited area is sought to be taken. it is a revolutionary kind of
expropriation o security for loans with government financial institution
o the smaller the land, the bigger the payment of money because the small  provided that proceeds of the loans shall be invested in an
landowner will be neding it more than economic enterprise
o payment for various taxes and fees to government
o payment for tuition fees of immediate family of original bond holder in
government universities, colleges, trade schools and other institutions
o payment for fees of immediate family of original bond holder in
government hospitals

Section 19. Incentives for Voluntary Offers for Sales. — Landowners, other than
banks and other financial institutions, who voluntarily offer their lands for sale shall
be entitled to an additional five percent (5%) cash payment.
DOCUMENTARY REQUIREMENTS FOR LANDOWNERS WHO
VOLUNTARILY OFFER THEIR AGRICULTURAL LANDS FOR SALE
 Written offer
 Title or proof of ownership if untitled subjected to compulsory acquisition
 Tax declaration Section 20. Voluntary Land Transfer. — Landowners of agricultural lands subject to
 Approved survey plan acquisition under this Act may enter into a voluntary arrangement for direct transfer of
their lands to qualified beneficiaries subject to the following guidelines:
FAILURE TO SUBMIT DOCUMENTARY REQUIREMENTS – land will be  All notices for voluntary land transfer must be submitted to the DAR within the
 first year of the implementation of the CARP. Negotiations between the farmer-beneficiary within thirty (30) days from the date of registration.
landowners and qualified beneficiaries covering any voluntary land transfer  In the event they cannot agree on the price of land, the procedure for compulsory
which remain unresolved after one (1) year shall not be recognized and such acquisition as provided in Section 16 shall apply. The LBP shall extend
land shall instead be acquired by the government and transferred pursuant to this financing to the beneficiaries for purposes of acquiring the land.
Act. MODE OF PAYMENT IN VOLUNTARY LAND TRANSFERS - unlike
 The terms and conditions of such transfer shall not be less favorable to the compulsory acquisition, farmer beneficiary pays agreed price of land directly to
transferee than those of the government's standing offer to purchase from the owner
landowner and to resell to the beneficiaries, if such offers have been made and
are fully known to both parties. CHAPTER VII Land Redistribution
 The voluntary agreement shall include sanctions for non- compliance by either Section 22. Qualified Beneficiaries.
party and shall be duly recorded and its implementation monitored by the DAR.  The lands covered by the CARP shall be distributed as much as possible to
VOLUNTARY LAND TRANSFER NO LONGER ALLOWED landless residents of the same barangay, or in the absence thereof, landless
 Sec 7 of CARL as amended by RA 9700 allowed voluntary land transfer up to residents of the same municipality in the following order of priority:
June 30 2009 only o agricultural lessees and share tenants;
 After June 30 2009, the modes of acquisition are limited only to o regular farmworkers;
o voluntary offer to sell and o seasonal farmworkers;
o compulsory acquisition o other farmworkers;
o actual tillers or occupants of public lands;
Section 21. Payment of Compensation by Beneficiaries Under Voluntary Land o collectives or cooperatives of the above beneficiaries; and
Transfer. o others directly working on the land.
 Direct payments in cash or in kind may be by the farmer- beneficiary to the  Provided, however, that the children of landowners who are qualified under
landowner under terms to be mutually agreed upon by both parties, which shall Section 6 of this Act shall be given preference in the distribution of the land of
be binding upon them, upon registration with the approval by the DAR. Said their parents: and provided, further, that actual tenant-tillers in the landholdings
approval shall be considered given, unless notice of disapproval is received by shall not be ejected or removed therefrom.
the  Beneficiaries under Presidential Decree No. 27 who have culpably sold,
disposed of, or abandoned their land are disqualified to become beneficiaries
under this Program.
 A basic qualification of a beneficiary shall be his willingness, aptitude, and
ability to cultivate and make the land as productive as possible. The DAR shall
adopt a system of monitoring the record or performance of each beneficiary, so
that any beneficiary guilty of negligence or misuse of the land or any support
extended to him shall forfeit his right to continue as such beneficiary. The DAR
shall submit periodic reports on the performance of the beneficiaries to the
PARC.
 If, due to the landowner's retention rights or to the number of tenants, lessees, or lands from the public domain.
workers on the land, there is not enough land to accommodate any or some of WHO ARE ELIGIBLE TO BECOME AGRARIAN REFORM BENEFICIARIES –
them, they may be granted ownership of other lands available for distribution Must be a landless resident of the same barangay, or same municipality
under this Act, at the option of the beneficiaries.
 Farmers already in place and those not accommodated in the distribution of LANDLESS RESIDENT – Farmer or tiller who owns less than 3 hectares of land
privately-owned lands will be given preferential rights in the distribution of  agricultural lessees and share tenants
 regular farmworkers 15 1988 are not qualified to become agrarian reform beneficiaries
 seasonal farm workers  however, farm workers promoted to managerial or supervisory position after
 other farm workers they were identified, screened and selected will remain to be qualified
 actual tillers or occupants of public lands beneficiaries
 collectives or cooperatives of above beneficiaries
 others directly working on the land WHO ARE DISQUALIFIED TO BECOME AGRARIAN REFORM
BENEFICIARIES- The following tenants, lessees or farm workers
QUALIFICATIONS OF AN AGRARIAN REFORM BENEFICIARY – Farmer  Those who do not meet the basic qualifications
(whether tenant, lessee or worker) must be  Those who have waived their right to become an agrarian reform beneficiary in
 Filipino citizen exchange for compensation, provided that waiver has not been questioned in
 Resident of barangay or municipality where landholding is located proper government entity
 At least 15 years old at time of identification, screening and selection  Those who have not paid an aggregate of 3 annual amortizations
 Willing, able and equipped with aptitude to cultivate and make land productive  Those who have failed to exercise right of redemption/repurchase within 2 years
resulting in foreclosure of mortgage by Land Bank of the Philippines of a
SPECIAL QUALIFICATIONS FOR FARM WORKERS IN COMMERCIAL previously awarded land
FARMS PLANTATIONS - if they were already employed as of June 15, 1988 in the  Those who refused to pay 3 annual amortizations for land acquired through
landholding covered by the comprehensive agrarian reform law voluntary land transfer or direct payment scheme, resulting in repossession by
landowner
MANAGERIAL FARM WORKERS NOT QUALIFIED TO BECOME  Those who have been dismissed for cause
BENEFICIARIES  Those who have obtained substantially equivalent employment
 farm workers holding managerial or supervisory positions as of June o i.e., any employment or profession form which applicant farmer derives
income equivalent to income of a regular farm worker at time of
identification, screening, and selection of beneficiary
 those who have retired or voluntarily resigned from employment
 those who have misused the land or diverted the financial support services
extended by the government
 those who have misrepresented material facts in basic
qualifications
 those who have sold, disposed, or abandoned the lands awarded to them by the
government
 those who have converted agricultural lands to non agricultural use without prior
approval from DAR
 those who have been finally adjudged guilty of forcible entry or unlawful
detainer over the property
 those who have violated agrarian reform laws and regulations

SEC. 22-A. Order of Priority. - A landholding of a landowner shall be distributed

first to qualified beneficiaries under Section 22,
subparagraphs (a) and (b) of that same landholding up to a maximum of three (3) each, shall the remaining portion of the landholding, if any, be distributed to other
hectares each. Only when these beneficiaries have all received three (3) hectares beneficiaries under Section 22, subparagraphs (c), (d), (e), (f), and (g)."
ORDER OF DISTRIBUTION seasonal or other farm workers, following criteria for priorization shall be
 Children of landowner enjoy first preference in distribution of landholding. Each observed
child is entitled to 3 hectares if o willingness, aptitude, ability to cultivate and make land productive
o 15 years old o physical capacity
o actually tilling the land or directly managing the farm o length of service
 After the children, 3 hectares each is given to:  if seasonal or other farm workers equally meet the foregoing criteria, priority
o Agricultural lessees and share tenants shall be given to those who have continuously worked on the subject
o Regular farm workers landholding.
 remaining portion o other farm workers who cannot be accommodated will be put in wait
o seasonal farm workers list of potential beneficiaries in other landholdings
o other farm workers  if beneficiaries opt for collective ownership, such farmers cooperative, total area
o actual tillers or occupants of public lands must coincide with total number of members or co owners multiplied by 3
hectare limit
o collectives or cooperatives of above beneficiaries
o others directly working on the land
FACTORS TO BE CONSIDERED IN DETERMINING THE SIZE OF LAND TO
BE AWARDED
Section 23. Distribution Limit. — No qualified beneficiary may own more than
 type of crop
three (3) hectares of agricultural land.
 type of soil
MAXIMUM AREA THAT CAN BE OWNED BY OR AWARDED TO  weather patterns
BENEFICIARIES IS 3 HECTARES  other pertinent factors critical for success of beneficiaries
 therefor is a tenant or farm worker already owns 2 hectares, he can still be
awarded 1 hectare Section 24. Award to Beneficiaries. —
 if particular landholding is not enough to meet then 3 hectare award ceiling for  The rights and responsibilities of the beneficiaries shall commence from their
each agricultural lessee or tenant, area to be distributed to them will be based on receipt of a duly registered emancipation patent or certificate of land ownership
actual size of tillage by each lessee or tenant award and their actual physical possession of the awarded land. Such award shall
 if landholding is more than enough to accommodate 3 hectare limit for each be completed in not more than one hundred eighty (180) days from the date of
agricultural lessee or tenant, excess will be distributed to agrarian reform registration of the title in the name of the Republic of the Philippines: Provided,
beneficiaries in the following order of priority That the emancipation patents, the certificates of land ownership award, and
other titles issued under any agrarian reform program shall be indefeasible and
o seasonal farm workers
imprescriptible after one (1) year from its registration with the Office of the
o other farm workers
Registry of Deeds, subject to the conditions, limitations and qualifications of
o actual tillers or occupants of public lands this Act, the property registration decree, and other pertinent laws. The
o collectives or cooperatives of above beneficiaries emancipation patents or the certificates of land ownership award being titles
 if not economically feasible and sound to divide the excess to brought under the operation of the torrens system, are conferred with the
same
indefeasibility and security afforded to all titles under the said system, as landowner constituting full payment in cash or in bond with due notice to the
provided for by Presidential Decree No. 1529, as amended by Republic Act No. landowner and the registration of the certificate of land ownership award issued to
6732. the beneficiaries, and to cancel previous titles pertaining thereto.
 It is the ministerial duty of the Registry of Deeds to register the title of the land  Identified and qualified agrarian reform beneficiaries, based on Section 22 of
in the name of the Republic of the Philippines, after the Land Bank of the Republic Act No. 6657, as, amended, shall have usufructuary rights over the
Philippines (LBP) has certified that the necessary deposit in the name of the awarded land as soon as the DAR takes possession of such land, and such right
 shall not be diminished even pending the awarding of the emancipation patent or o subject to conditions, limitations and qualifications under CARL, PRD
the certificate of land ownership award. and other laws
 All cases involving the cancellation of registered emancipation patents,
certificates of land ownership award, and other titles issued under any agrarian CANCELLATION OF CLOAS - all cases for cancellation of CLOAs and other titles
reform program are within the exclusive and original jurisdiction of the issued under agrarian reform program – exclusive and original jurisdiction of Sec of
Secretary of the DAR." DAR

TRANSFER OF OWNERSHIP TO THE BENEFICIARIES NOT AUTOMATIC GROUNDS FOR CANCELLATION OF CLOAS
 Compulsory acquisition does not mean automatic transfer of ownership of land  Abandonment of land
 title and ownership over land can be transferred to beneficiaries only upon full  Neglect or misuse of land
payment of just compensation to land owner.  Failure to pay 3 annual amortizations
 Misuse or diversion of financial and support services
WHEN DOES DAR ISSUE CERTIFICATE OF LAND OWNERSHIP AWARD  Sale, transfer or conveyance of right to use the land
 DAR will issue CLOA only upon full payment of amortization by farmer  Illegal conversion of land
beneficiary
 CLOA becomes basis for issuance in his name of original or transfer certificate RIGHTS AND OBLIGTIONS OF BENEFICIARIES COMMENCE from receipt
of title of duly registered CLOA and actual physical possession of awarded land
 pending CLOA issuance, the identified and qualified agrarian reform
CLOA IS INDEFEASIBLE beneficiaries have usufructuary rights over awarded land which DAR has taken
 Titles brought under operation of Torrens system possession
 same indefeasibility and security
 CLOAs and other titles issued under agrarian reform program become OBLIGATIONS OF AGRARIAN REFORM BENEFICIARIES
indefeasible and imprescriptible after 1 year from registration with Office of  Exercise due diligence in the use, cultivation and maintenance of land, including
Registry of Deeds improvements thereon
 Pay land bank 30 annual amortizations with 6% interest per anum
o amortization will start 1 year from date of registration of CLOA
o however if actual occupancy of land takes place after CLOA
registration, 1 year period shall be reckoned from constructive
occupation

Section 25. Award Ceilings for Beneficiaries.

 Beneficiaries shall be awarded an area not exceeding three (3) hectares, which
may cover a contiguous tract of land or several parcels of land cumulated up to
the prescribed award limits. The determination of the size of the land for
distribution shall consider crop type, ,soil type, weather patterns and other
pertinent variables or factors which are deemed critical for the success of
the beneficiaries. with existing cooperative banks in their respective provinces or localities, as well
 For purposes of this Act, a landless beneficiary is one who owns less than three as forming blocs of agrarian reform beneficiaries, corporations, and partnerships
(3) hectares of agricultural land. and joining other farmers' collective organizations, including irrigators'
 Whenever appropriate, the DAR shall encourage the agrarian reform associations: Provided, That the agrarian reform beneficiaries shall be assured of
beneficiaries to form or join farmers' cooperatives for purposes of affiliating corresponding shares in the corporation, seats in the board of directors, and an
 equitable share in the profit. facilities that cannot be subdivided or assigned to individual farmers.
 In general, the land awarded to a farmer- beneficiary should be in the form of an  For idle and abandoned lands or underdeveloped agricultural lands to be covered
individual title, covering one (1)contiguous tract or several parcels of land by CARP, collective ownership shall be allowed only if the beneficiaries opt for
cumulated up to a maximum of three (3) hectares. it and there is a clear development plan that would require collective farming or
 The beneficiaries may opt for collective ownership, such as co- workers or integrated farm operations exhibiting the conditions described above. Otherwise,
farmers cooperative or some other form of collective organization and for the the land awarded to a farmer-beneficiary should be in the form of a n individual
issuance of collective ownership titles: Provided, That the total area that may be title, covering one (1) contiguous tract or several parcels of land cumulated up to
awarded shall not exceed the total number of co-owners or members of the a maximum of three (3) hectares.
cooperative or collective organization multiplied by the award limit above  In case of collective ownership, title to the property shall be issued in the name
prescribed, except in meritorious cases as determined by the PARC. of the co- owners or the cooperative or collective organization as the case may
 The conditions for the issuance of collective titles are as follows: be. If the certificates of land ownership award are given to cooperatives then the
o The current farm management system of the land covered by CARP names of the beneficiaries must also be listed in the same certificate of land
will not be appropriate for individual farming of farm parcels; ownership award.
o The farm labor system is specialized, where the farmworkers are  With regard to existing collective certificates of land ownership award, the DAR
organized by functions and not by specific parcels such as spraying, should immediately undertake the parcelization of said certificates of land
weeding, packing and other similar functions; ownership award, particularly those that do not exhibit the conditions for
o The potential beneficiaries are currently not farming individual parcels collective ownership outlined above. The DAR shall conduct a review and
hut collectively work on large contiguous areas; and redocumentation of all the collective certificates of land ownership award. The
o The farm consists of multiple crops being farmed in an integrated DAR shall prepare a prioritized list of certificates of land ownership award to be
manner or includes non- crop production areas that are necessary for parcelized. The parcelization shall commence immediately upon approval of this
the viability of farm operations, such as packing plants, storage areas, Act and shall not exceed a period of three (3) years. Only those existing
dikes, and other similar certificates of land ownership award that are collectively farmed or are operated
in an integrated manner shall remain as collective."

INDIVIDUAL TITLES FOR EVERY BENEFICIARY

 General Rule: Land should be awarded to individual farmer beneficiary and
covered by an individual title
 However, if beneficiaries opt for collective ownership, collective ownership title
may be issued in name of co- owners or collective organization
o names of beneficiaries should be listed in same certificate of land
ownership award
CONDITIONS FOR ISSUANCE OF COLLECTIVE TITLES includes no crop production areas necessary for viability of farm operations
 Farm management system of land covered is not appropriate for individual o ex. packing plants, storage areas, dikes and other similar facilities that
farming cannot be subdivided or assigned to individual farmers
 farm labor is specialized
o i.e., where the farmworkers are organized by functions and not by TITLES MUST INDICATE THAT IT IS AN EP OR CLOA
specific parcels such as spraying, weeding, packing and other similar  Emancipation Patent
functions  Certificate of Land Ownership Award
 beneficiaries are currently not farming individual parcels but collectively work  applies to both title of land awarded and any subsequent transfer title
on large contiguous areas
 Farm consists of multiple crops being farmed in an integrated manner or Section 26. Payment by Beneficiaries.
 Lands awarded pursuant to this Act shall be paid for by the beneficiaries to the accordingly is not due to the beneficiary's fault, the LBP shall
LBP in 30 amortizations at 6% (interest per annum. reduce the interest rate and/or reduce the principal obligation
o Annual amortization shall start (1) year from the date of the certificate to make the repayment affordable.
of land ownership award registration.  The LBP shall have a lien by way of mortgage on the land awarded to the
o However, if the occupancy took place after the certificate of land beneficiary; and this mortgage may be foreclosed by the LBP for non-payment
ownership award registration, the amortization shall start (1) year from of an aggregate of three (3) annual amortizations. The LBP shall advise the DAR
actual occupancy. of such proceedings and the latter shall subsequently award the forfeited
o The payments for the first (3) years after award shall be at reduced landholding to other qualified beneficiaries. A beneficiary whose land, as
amounts as established by the PARC: provided herein, has been foreclosed shall thereafter be permanently disqualified
 Provided, That the first (5) annual payments may not be more from becoming a beneficiary under this Act."
than (5%) of the value of the annual gross production as
established by the DAR. SCHEDULE OF PAYMENT
 Should the scheduled annual payments after the fifth (5th) year  Cost of awarded land is payable to Land Bank by beneficiaries in 30 annual
exceed ten percent (10%) of the annual gross production and amortizations with 6% interest per annum
the failure to produce  payment starts 1 year from
o date of registration of CLOA or
o date of actual occupancy
 if occupancy took place after registration of CLOA

BASIS OF AMORTIZATION
 maximum amortization is 5% of annual gross production as
established by DAR
 After 5th year, interest rate and/or principal obligation may be reduced by
Land Bank to make repayment affordable
o if due to failure of production, scheduled annual payments exceed 10%
of annual gross production
o failure to produce is not due to beneficiaries fault

EFFECT OFF FAILURE TO PAY 3 ANNUAL AMORTIZATIONS

 Land Bank can forfeit landholding and award it to other qualified beneficiaries
 beneficiary whose land has been foreclosed or forfeited will be permanently
disqualified from becoming a beneficiary .