The Agricultural Tenancy

Act
(Republic Act no. 1199)
 INTRODUCTON:
Anchored on the principle of social justice, Republic Act No. 1199 or the
Agricultural Tenancy Act of 1954 was enacted to: establish clear
agricultural tenancy relations between landholders and tenants; provide
protection of the rights of both tenants and landholders; insure more
equitable sharing of the produce and income derived from the land and
provide tenant-farmers' incentives to greater and more efficient agricultural
production and the creation of the Court of Agrarian Relation.
With clear basis of crops sharing and regulation of relationship of
landowners and tenants, the Act aims to address the failures and loopholes
of the previous and reform laws.
 Sallent Features of Agricultural Tenancy Act
(Republic Act No. 1199)

The Law guarantees fair tenancy practices and facilitated the

trasformation of tenants into leaseholders. Provisions on the rigts,
obligations, and prohibitions to both landlord and tenants are
clearly enumerated to afford adequate protection of their rights.
The law also provides for the basis of sharing of crops and income
from the land as well as incetives for tenant-farmers to improve
agricultural production.
 Agricultural Tenancy Defined
Agricultural tenancy is the physical possession by a person of
land devoted to agriculture belonging to, or legally possessed
by, another for the purpose of production through the labor of
the former and of the members of his/her immediate farm
household. in consideration of which the former agrees to share
the harvest with the latter, or to pay a price certain
ascertainable, euther in produce or in money, or in both.
 Share Tenancy vs. Leasehold Tenancy
Share tenancy exist whenever two persons agree on a joint undertaking for agricultural
production wherein one party furnishes the land and the other his/her labor, with either
or both contributing any one or several of the items of product, from members of his/her
immediate farm household, and the produce thereof to be divided between the landlord
and the tenant in proportion to their respective contributions.
Leasehold tenancy exist when a person who, either personally or with the aid of labor
available from members of his/her immediate farm household, undertakes to cultivate a
piece of agriculture land susceptible of cultivation by a single person together with
members of his/ her immediate farm household, belonging to or legally possessed by,
another in consideration of a price certain or ascertainable to be paid by the person
cultivating the land either in percentage of the production or in a fixed amount in money,
or in both.
 Tenant vs. Landlord

Tenant shall mean a person who, himself/herself and with the aid available from
within his/her immediate farm household, cultivate the land belonging to, or
possessed by, another with the letter’s consent for purposes of production, sharing the
produce with the landlord under the share tenancy system, or paying to the
landholder a price certain or ascertainable in produce or , in money or both, under
the leasehold tenancy system.
Landlord shall mean a person, natural or juridical, who, either as owner, lessee,
usufructuary, or legal possessor, let or grants to another the use or cultivation of
his/her land for a consideration either in shares tenancy system, or a price certain or
ascertainable under the leasehold tenancy systeme
 Agricultural Year

Agricultural year is the period of time necessary for the raising of

seasonal agricultural products, including the preperation of the land, and
the sowing, planting and harvesting of the crop. In the case of coconuts,
citrus, coffee, ramie, and other crops where more than one harvest is
obtained from one planting, the term “agricultural year” shall mean the
period of the time from the preperation of land to the first harvest and
thereafter from harvest to harvest. In both case, the period of time may be
shorter or than a calender year.
 Tenancy Relationship

Tenancy relationship is a juridical tie which arises between a

landholder and a tenant once they agree. expressly or impliedly, to
undertake jointly the cultivation of land belonging to the farmer,
either under the share tenancy or leasehold tenancy system,as a which
relationship the tenancy acquires the right to continue working on and
cultivating the land, until and unless he/she is dispossessed of his/her
holdings for any of the just causes enumerated in Section 50 of the
Act of the relationship is terminated in accordance with Section nine.
 Tenancy Relationship and its Limitations

Tenancy relationship may be established either verbally or in

writing, expressly or impliedly. Once sucj relationship is
established, the tenant shall be entitled to security of tenure.
The relation of landholder and tenant shall be limited to the person
who furnishes the land, either as owner, lessee, usufructuary, or legal
possessor, and to the person who actually works the land
himself/herself with the aid of labor available from within his/her
immediate farm household.
 How Tenancy Relationship is Extinguish

The tenancy relationship may be extinguished on the following manner:

1. Voluntary surrender of the land,
2. Death or incapacity of the tenant but his/her heirs or the members of his/her
immediate farm household my continue to work the land until the close of the
agricultural year.

The expiration of the period of the contract as fixed by the parties and the sale or
alienation of the land do not themselves extinguish the relationship. In the latter case,
the purchaser of transferee shall assume the rights and obligations of the former
landolder in relation to the tenant. In case of death of the landholder, his/her heirs shall
likewise assume his/her rights and obligations.
FREEDOM TO CONTRACT ( tenancy Contract
)

The landholder and the tenant shall be free to enter into any or all
kinds of tenancy contract, as long as they are not contrary to law,
morals or public policy.
Except in case of fraud, error ,force, intimidation or undue influence,
when such contract is reduced to writing and registered as
hereinafter provided, the latter shall be conclusive evidence of what
has been agreed upon between contracting parties , if not denounced
or impugned within thirty days after it's registration.
 REGISTRATION OF TENANCY CONTRACTS

The municipal treasurer of the municipality wherein the land as the

subject - matter of a tenancy contract is situated shall keep a record of all
such contracts entered into within jurisdiction, to be known as " Registry
of tenancy contracts ".
He/she shall keep this registry together with a copy of each contact
entered therein and make notations on said registry of all subsequent acts
relative to each contract, such as renewal , novation , cancellation, etc.
The municipal treasurer shall not charge any fee for the registration of
said contracts or of any subsequent acts relative thereto, none of which
shall be subject to documentary stamp tax.
 Right to Change the Tenancy Contract

The tenant shall have the right to change the tenancy contract from one of
share tenancy to the leasehold tenancy and vice versa and from one crop-
sharing arrangement to another of the share tenancy. If the share tenancy
contract is in writing and is duly registered, the right may be exercised at
the expiration of the period of the contract. In the absence of any written
contract, the right may be exercised at the end of the agricultural year. In
both cases, the change to the leasehold system shall be effective one
agricultural year after the tenant hs served notice of his intention to change
upon the landholder.
 Right of the Tenant
The following are the rights of the tenant:
1. The tenant shall be freeto work elsewhere whenever the nature of his farm obligation warrants his
temporary absence from his holdings.
2. The tenant shall,aside from his labor, have the right to provide any of the contributions for production
whenever he can do so adequately and on time.
3. The tenant’s dwelling shall not, without his consent, be removed from the lot assigned to him by the
landholder, unless there is a severance of the tenancy relationship between them as provided under
Section nine, or unless the tenant is ejected for cause, and only after the expiration of 45 days following
such severance of relationship or dismissal for cause.
4. If the tenant is dismissed without just cause and he is constrained to work elsewhere, he may choose
either to remove his dwelling at the landholder’s cost ordemand the value of the same from the
landholder at the time of the unjust dismissal.
5. The tenant shall have the right to be indemnified for his labor and expenses in the cultivation, planting,
or harvesting and other incidental expenses for the improvement of the crop raised in case he is
dispossessed of his holdings, whether such dismissal is for a just cause and not, provided the crop still
exists at the time of the dispossesion.
6. Determine when to scatter the seeds, to transplant the seedlings, and to reap the harvest, provided they
shall be in accordance with proven farm practices and after due notice to the landholder.
7. Choose the thresher which shall thresh the harvest whenever itis the best available in the locality and the
best suited to the landholder’s and tenant’s needs and provided the rate charged is equal to or lower than
the rate changed by the owner of other threshers under similar circumstances: Provided, further, That is
cases where there are more than one tenant the selection of the majority of the tenants shall prevail;
Provided, finally, That if the landholder is the owner of a thresher and is ready and willing to grant equal
or lower rates under the same conditions, the use of the landholder’s thresher shall be given preference.
8. Apply appropriate pest, insect, disease and rodent control measures whenever in his judgement such
action is necessary: Provided, however , That if a tenant fails to apply any of the above control measures
after the landholder has made a request in writing for such action, he shall be liable for any loss resulting
from such failure.
9. Apply fertilizer of the kind or kinds shown by proven farm practices to ve adapted to the requirements of
the land, provided the landholder has not exercised his right under Section 25 to require the use of such
fertilizer.
 Obligation of the Tenant
1. To cultivate and take care of the farm, the growing crop and the other improvements entrusted
to him as a good father of a family, by doing all the work necessary in accordance with proven
farming practices.
2. To inform the landholders at once of any trespass committed by a third person upon the farm.
3. To take reasonable care of the work animals and farm implements used in the point
undertaking. He shall not use the work animals and farm implements entrusted to him by the
landholder for purposes other than those intended, or allowed their use by other persons
without the knowledge and consent of the landholder. The tenant shall nor abandon or
surrender his holdings and leave the farm and growing crop and other improvements
unattended during the watch season, except for just and reasonable cause. In case of such
injustified abandonment or surrender, any or all of his expected share in the crop may, in the
discretion of the court, be forfeited in favor of the landholder to the extent of the damage
caused thereby.
 Just and Reasonable Cause for the Tenant to
Terminate the Tenancy Relationship
Any of the following shall be considered just and reasonable cause for the tenant to terminate
the tenancy relationship:
1. Cruel, inhuman or offensive treatment on the part of the landholder of his/her
representative toward the tenant or any member of his/her immediate farm household.
2. Non-compliance on the part of the landholder with any of the obligations imposed upan
him by the provisions of this Act or by the contract.\
3. If the landholder or his representative compels the tenant or any member of his immediate
farm household to do any work or render any service not in any way connected with his
farm work, or even without complusion if no compensation is paid.
4. Commission of a crime by the landholder of his representative against the tenant or any
member of his immediate farm household.
 Prohibitions to tenent
The Tenant is prohibited to do the following:
1. It shall be unlawful for the tenant, whenever the area of his holdings is five bacteres or more, or is
sufficient size to make him and the members of his immediate farm household fully occupied in its
cultivation, to contract to work at the same time on two or more seperate holdings belonging to
different landholders under any system of tenency, without the knowlegde and consent of the land-
holder with whom he first entered into tenancy relationship.
2. It shall be unlawful for a share-tenant to employ a sub-tenant to furnish labor or any phase of the
work required of him under this Act, except in cases of illness or any temporary incapacity on his
part, in which eventuality the tenant or any member of his immediate farm household is under
obligation to report such illness or incapacity to the landholder. Payment to the sub-tenant, in
whatever form, for services rendered on the land under this circumstance, shall be for the account of
the tenant.
3. Subject to provisions of the next proceeding paragraph, land entrusted for cultivation to a leasehold
tenant shall not be sub-let nor shall the lease be assigned by the tenant to another person, except with
the written consent of the lessor.
 Rights of the Landholder
The following are the rights of the landholder:
1. The landholder shall have the right to choose the kind of crop and the seeds ne tenant shall
plant in his holdings: Provided, however, That if the tenant should subject, the court shall
settle the conflict, according to the best interest of both parties.
2. The landholder shall have the right to require the use of fertilizer of the kind or kinds
shown by proven farm practices to be adapted to the requirements of the land.
3. The landholder shall have the right to inspect and observe the extent of
compliance on the part of the tenant with the terms and conditions of their
contract and the provisions of this Act.
4. In cases where the crop has to be sold in processed form before division and the tenant
has no representative, the landholder, shall have the right to deal with millers or processors in
representation of the tenant .
5. Determine the proper height of pilapilsor dikes according to
the local practices
6. Determine the location and size of irrigation canals.
7. Determine the site for the stacking of the harvest, provided
it shall not be farther than one kilometer from the center of
the area cultivated by a majority of the tenants.
8. Determine the date of threshing.
 Obligations of the Landholder
The following are the obligations of the landholder

1. The landholder shall furnish the tenant an area of not less than one
thousand square meters where the latter may construct his dwelling, raise
vegetables, poultry, pigs, and other animals and engage in minor
industries, the products of which shall accrue to the tenant exclusively.
2. The landholder shall keep the tenant in the peaceful possession and
cultivation of his landholdings which are the subject matter of the
contract.
 Prohibitions of the Landholder
The landholder is prohibited to do the following:
1. The landholder shall not dispossess the tenant of his holdings except for any of the causes
enumerated in Section 50, and without the cause having been proved before, and the
dispossession authorized by, the court; otherwise, he shall aside from the penalty of fine
and/or imprisonment provided for any violation of this Act, be liable to the tenant for
damages to the extent of the landholder’s right under Section 22 of this Act.
2. The Landholder shall be responsible for the payment of taxes levied by the Government
upon the land which is the subject-matter of the contract and it shall be unlawful to make
the tenant bear in part of all the same, either directly or indirectly.
3. The Landholder shall not require the tenant to bear, directly or indirectly, any part of rent,
“canon” or other consideration which he, the former, may be under obligation to pay to a
third person for the use of the land.
 Basic of Sharing
The parties shall , on ricelands which produce a normal average of more than forty cavanes per hectare for the
three agricultural years next preceding the Current harvest, receive as shares in the gross produce, after setting
aside the same amount of palay used as seed, and after deducting the cost of fertilizer, pest and weed control,
reaping and threshing, the amount corresponding to the total equivalent of their individual contributions,
computed as follow:

CONTRIBUTION PARTICIPATION
Land 30%
Labor 30%
Farm implements 5% In the case of second class land-on ricelands,
Work animals 5% wchich produce normal average of forty cavans or
Final harrowing of 5% less per hectare for three agricultural years next
the field immediately
preceding the current harvest , the participation for
the land shall be 25% and that of labor, thirty-five
before transplanting
Transplanting 25% per centum.
 Labor to be Perform by Tenant
The Tenant shall perform the following as the labor contributed by him under Section 32;
1. The preparation of the seedbed which shall include plowing, harrowing, and watering of the
seedbed, the scattering of the seeds, and the care of the seedings.
2. The plowing, harrowing, and watering of the area he is cultivating, except final harrowing of the
field as an item of contribution specified in Section 32 of this Act.
3. The maintenance, repair and weeding of dikes, paddies, and irrigation canals in his holdings.
4. The pulling and bundling of the seedlings preparatory to their transplanting.
5. Care of the growing plants.
6. Gathering nd bundling of the reaped harvest.
7. The piling of the bundles into small stacks.
8. The preparation of the place where the harvest is to be stacked.
9. Gathering of the small stacks and their transportation to the place where they are to be stacked.
10.Piling into a big stac preparatory to threshing.
 Landlord-Lessor and Tenant-Lessee

Any person, natural or juridical, either as owner, lesree, usufructuary or

legal possessor or agricultural land, who lets, leases or rents to another said
property for purposes of agricultural production and for a price certain or
ascertainable either in an amount of money or produce shall be known as the
landholder-lessor and any person who, with the consent of the former tills
cultivates or operates said land, susceptible of cultivation by one individual
personally or with the aid of labor available from among his own immediate
farm household, is a tenant-lessee.
 Rights and Obligations of Tenant-Lessee

With the creation of the tenancy relationship arising out of the contract
between the landholder-lessor and tenant-lessee, the latter shall have the right
to enter the premises of the land, and to the adequate and peaceful enjoyment
thereat He shall have the right to work the land according to his best
judgment, provided this manner and method of cultivation and harvest are in
accordance with proven farm practices. Upon termination of the relationshup,
he shall be entitled to one half of the value of the improvements made by him,
provided they are reasonable and adequate to the purposes of the lease.
The tenant-lessee shall pay the consideration stipulated in the lease contract
provided it shall not exceed the limit fixed in Section 46. In the absence of
stipulation the consideration shall be that established in said Section 46. He
shall make proper use of the land and the improvements thereon and shall
be under obligation to cultivate it as a good father of a family, by doing all
the work considered reasonable and necessary in accordance with proven
farm practices. He is likewise obliged to take reasonable care of the work
animals and farm implements that may be delivered to him by the
landholder, in case it is agreed between the parties that the landholder-
lessor shall finish any or all of them.
 Rights of Landholder-Lessor

The landholder-lessor or his duly authorized representatives shall

have the right to inspect the premises of the land which is the
subject of the lease for the purpose of acsertaining the tenant’s
compliance with the provisions of the contract and of this Act,
but in no shall he exercise any coercion, intimidation or violence
in word or deed.
 Ejectment of Tenant
Not with standing any agreement or provision or law as to the period, in
all cases where land devoted to any agricultural purpose is held under
any system of tenancy, the tenant shall not be dispossessed of his
holdings except for any of the causes here in after enumerated and only
the same has been proved before, and the dispossession is authorized
by, the court.
 CAUSES OF DISPOSSESSION OF TENANT
1. The bon fide intention of the landholder to cultivate the land himself personally or through the
employment of farm machinery and implements: Provided, however, That should the landholder
not cultivate the land himself or should fail to employ mechanical farm implements for a period of
one year after the dispossession of the tenant, it shall be presumed that he acted in bad faith and
the land and damages for any loss incurred by him because of said dispossession. Provided,
further, That the land-holder shall, at least one year but not more than two years prior to the date of
his petition to dispossess the tenant under this subsection, file notice with the court and shall
inform the tenant in wiring in a language or dialect known to the latter of his intention to cultivate
the land himself, either personally or through the employment of mechanical implements, together
with a certification of the Secretary of Agriculture and Natural Resources that the land is suited for
mechanization. Provided, further, That the dispossessed tenant and the members of the immediate
household shall be preferred in the employment of necessary laborers under the new set-up.
2. When the current tenant violates or fails to comply with any of the terms and conditions of
the contract or any of provisions of this Act: Provided, however, That this subsection shall
not apply when the tenant has substantially complied with the contract or with the
provisions of this Act.
3. The tenant's failure to pay the agreed rental or to deliver the landholder's share: Provided,
however, That this shall not apply when the tenant's failure is caused by a fortuitous event
or force majeure.
4. When the tenant uses the land for a purpose other than that specified by agreement of the
parties.
5. When a share-tenant fails to follow those proven farm practices which will contribute
towards the proper care of the land and increased agricultural production.
6. When the tenant through negligence permits serious injury to the land which will impair its
productive capacity.
7. Conviction by a competent court of a tenant or any member of his immediate family or
farm household of a crime against the landholder or a member of his immediate family.
 PENAL PROVISION

Violation of any of the provisions of this Act shall be punished with a

fine not exceeding Php 2,000 or imprisonment not exceeding one year,
or both in the discretion of the Court.
 SOME FLAWS OF AGRICULTURAL TENANCY
ACT

With all the programs and bills passed under President Magsaysay's
administration, of the targeted 300 haciendas for distribution, only 41 were
distributed after its 7 years of implemention. This was due to lack of funds
and inadequate support services provided for these programs. As a result,
landlords continued to be uncooperative and critical to the program and
landownership and tenancy problems continued.
THANK YOU