Agrarian Law and

Social Legislation
❧
A Group 1 presentation on the
Comprehensive Agrarian Reform Law
(Republic Act No. 6657) Sections 1 to 35
AN INTRODUCTION
TO THE “FIELD”
❧
 Agrarian
❧
❧ Comes from the Latin word “ager”, means field.
❧ Lexically, anything related to land or to the
ownership or division of land.

Obyus ba?
 Agrarian Law
❧
❧ - the distribution of pubic agricultural lands, large
estates, and regulation of the relationship between
the landowner and the farmer who works on the
land.

- Comprehensive Agrarian Reform Law is the basic

law, supplemented by the Tenant’s Emancipation
Act of 1972 (PD no. 27) and the Agricultural Land
Reform Code (RA 3844)*

*Under President Diosdado Macapagal’s time. Alam

na ung PD kung kanino.
 ❧

Source:
 ❧

Source:
 What’s the objective of
the❧law?
❧ To breakup agricultural lands;
❧ Transform them into economic-size farms owned by
the farmers themselves;
❧ And to uplift their socio-economic status.

Government
 What was it founded
on?
❧
❧ the right of the farmers and regular farm workers
who are landless, to own and directly, or collectively
the lands they till or, in the case of other farm
workers, to receive a just share in the fruits thereof.

❧ on the farmers and regular farm workers who are

landless, to own and directly, or collectively the
lands they till or, in the case of other farm workers,
to receive a just share in the fruits thereof.
❧ After all, as they say, “magtanim ay di biro”!
 ❧

Source:
http://www.galeriejoaquin.com/exhibitions/painting/223
Social Legislation
❧
 What is it?
❧
❧ there’s no precise definition.
❧ it’s so BROAD that it covers labor laws, agrarian
laws, and welfare laws.
❧ emphasizes general public good and social welfare.

Source:
http://webmedia.jcu.edu/campusministry/files/2015/06/ha
nds.jpg
 Article 13, Section 1 of the 1987
Constitution
❧
❧ The Congress shall give highest priority to the
enactment of measures that protect and enhance the
right of all the people to human dignity, reduce
social, economic, and political inequalities, and
remove cultural inequities by equitably diffusing
wealth and political power for the common good. To
this end, the State shall regulate the acquisition,
ownership, use, and disposition of property and its
increments.
 Article 13, Section 2 of
the 1987 Constitution
❧
❧ The promotion of social justice shall include the
commitment to create economic opportunities based
on freedom of initiative and self-reliance.
 Comprehensive Agrarian Reform Law of 1988
( RA No. 6657)
Section 1. Title. - This Act shall be known as the Comprehensive Agrarian Reform
Law of 1988.

Agrarian Reform Law embraces all laws that govern and regulate the rights
and relationship over agricultural lands between landowners, tenants, lessees
or agricultural workers. Its purpose is the redistribution of public and private

❧
agricultural lands to farmers and farm workers who are landless, irrespective
of tenurial arrangement.  

Agrarian Reform, however, is not limited to distribution of lands to landless

farmers and farm workers – but includes other alternative modes such as:
labor administration; profit-sharing; and stock distribution.

The Comprehensive Agrarian Reform Law (CARL) applies only to

agricultural lands. It does not apply to lands classified as residential,
commercial, industrial, mineral, or forest land. (Section 3, CARL)
Agricultural land refers to land devoted to agricultural activities. It
contemplates lands that are arable and suitable for farming.
 History of Philippine
Agrarian Laws
❧
❧ The Special Provisions for Rural Leases of the Civil Code governs the relationship
between the landowners and tenants. 

❧ Rice Share Tenancy Act (Act No. 4054) regulated the relationship between the landlords
and tenants on rice lands.
❧ Sugar Tenancy Act (Act No. 4113) regulated the relationship between the landowners and
tenants on lands planted with sugar canes.
❧ Commonwealth Act 53 recognized the testimony of the tenant as prima facie
evidence of the terms of a tenancy contract that was not reduced in
writing in a language known to him.
❧ Commonwealth Act 178 amended Act No. 4054
❧ Commonwealth Act 271 amended Act No. 4113
❧ Commonwealth Act 461 enacted to provide security of tenure to agricultural
tenants
❧ Commonwealth Act 608 amended Commonwealth Act 461

❧ R.A. No. 34 amended the Rice Share Tenancy Act

❧ Agricultural Share Tenancy Act (RA 1199) repealed prior tenancy laws except the Sugar
Tenancy Act
❧ R.A. No. 1400 set in motion the expropriation of all tenanted estates
❧ Agricultural Land Reform Code (RA 3844) abolished share tenancy
❧ Code of Agrarian Reforms (RA 6389)

❧
❧ Tenant Emancipation Law provided for the transfer of lands primarily
devoted to rice and corn to the tenants.
❧ PD No. 946 reorganized Court Agrarian Relations
❧ PD No. 1038 promulgated to strengthen the security of tenure of tenants
in non-rice or corn agricultural lands.
❧ PD Nos. 251, 444, 1039, and 1817 amended Code of Agrarian
Reform.

❧ EO No. 228 and 229 President Corazon Aquino, exercising her

powers under the Transitory Provisions declared the full land
ownership in favor of the beneficiaries under PD No. 27
❧ Comprehensive Agrarian Reform Law of 1988 (June 10, 1988)
❧ R.A. Nos. 7881, 7905, 8532, and 9700 amended some of the
provisions of the Comprehensive Agrarian reform Law.
Section 2. Declaration of Principles and Policies

❧
Agrarian Reform Obljectives:

➢ provide landowners equality in terms of income and

opportunities
➢ empower land owner beneficiaries to have an equitable
land ownership
➢ enhance the agricultural production and productivity
➢ provide employment to more agricultural workers
➢ put an end to conflicts regarding land ownership.
Beneficiaries:
❧
➢ landless farmers
➢ agricultural lessees
➢ Tenants
➢ Regular farm workers
➢ seasonal and other farm workers
 ❧
Hacienda Luisita Inc. vs. PAPRC (653 SCRA 154) –

The agrarian reform program is founded on the

right of farmers and regular farm workers, who are
landless, to own directly or collectively the lands
they till or, in the case of other farm workers, to
receive a share of the fruits thereof. But it does not
guarantee improvement of the lives of the agrarian
reform beneficiaries - at best, it merely provides for
a possibility or favorable chance of uplifting the
economic status of the FWBs, which may or may not
be attained.
Meaning of Economic Family-size Farm

❧
❧ Economic family-size farm means an area of farm
land that permits efficient use of labor and capital
resources of the farm family and will produce an
income sufficient to provide a modest standard of
living to meet a farm family’s needs for food,
clothing, shelter, and education with possible
allowance for payment of yearly installments on the
land,, amd reasonable reserves to absorb yearly
fluctuations in income. (Sec. 166, Code of Agrarian
Reform as amended)
 Section 3. Definitions. 
❧
❧ Agrarian Reform – means redistribution of lands,
regardless of crops or fruits produced, to farmers and
regular farmworkers who are landless, irrespective of
tenurial arrangement, to include the totality of factors
and support services designed to lift the economic status
of the beneficiaries and all other arrangements alternative
to the physical redistribution of lands, such as production
or profit-sharing, labor administration, and the
distribution of shares of stocks, which will allow
beneficiaries to receive a just share of the fruits of the
lands they work.
 ❧

Illustration 1: Farm Dog looking

over the farm land
❧ Agriculture, Agricultural Enterprise or Agricultural
Activity – means the cultivation of the soil, planting of
crops, growing of fruit trees, raising of livestock, poultry

❧
or fish, including the harvesting of such farm products,
and other farm activities and practices performed by a
farmer in conjunction with such farming operations done
by person whether natural or juridical.
❧ Agricultural Land – refers to land devoted to agricultural
activity as defined in this Act and not classified as mineral,
forest, residential, commercial or industrial land.
❧ Agrarian Dispute – refers to any controversy relating to
tenurial arrangements, whether 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 tenurial arrangements.
 ❧
❧ Idle or Abandoned Land – refers to any agricultural land
not cultivated, tilled or developed to produce any crop
nor devoted to any specific economic purpose
continuously for a period of three (3) years immediately
prior to the receipt of notice of acquisition by the
government as provided under this Act, but does not
include land that has become permanently or regularly
devoted to non-agricultural purposes.t does not include
land which has become unproductive by reason of force
majeure or any other fortuitous event, provided that
prior to such event, such land was previously used for
agricultural or other economic purpose.
 ❧

Illustration 2: IDLE OR
ABANDONED LAND
 ❧
❧ Farmer – refers to a natural person whose primary
livelihood is cultivation of land or the production of
agricultural crops, either by himself, or primarily
with the assistance of his immediate farm household,
whether the land is owned by him, or by another
person under a leasehold or share tenancy agreement
or arrangement with the owner thereof
 ❧

Illustration 3:
FILIPINO FARMER
Farmworker – is a 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, weekly, monthly or "pakyaw" basis. The term includes
an individual whose work has ceased as a consequence of, or
in connection with, a pending agrarian dispute and who has
not obtained a substantially equivalent and regular farm
employment.

❧ Regular Farmworker – is a natural person who is employed

on a permanent basis by an agricultural enterprise or farm.
❧ Seasonal Farmworker is a natural person who is employed
on a recurrent, periodic or intermittent basis by an
agricultural enterprise or farm, whether as a permanent or a
non-permanent laborer, such as "dumaan", "sacada", and the
like.
❧ Other Farmworker is a farmworker who does not fall under
paragraphs above
 ❧

Illustration 4: RICE
FARMWORKERS
 ❧
❧ Cooperatives – organizations composed primarily of
small agricultural producers, farmers, farmworkers,
or other agrarian reform beneficiaries who
voluntarily organize themselves for the purpose of
pooling land, human, technological, financial or
other economic resources, and operated on the
principle of one member, one vote. A juridical person
may be a member of a cooperative, with the same
rights and duties as a natural person.
 ❧

Section 4. Scope. 
❧ The Comprehensive Agrarian Reform Law of 1989

❧
shall cover, regardless of tenurial arrangement and
commodity produced, all public and private
agricultural lands, as provided in Proclamation No.
131 and Executive Order No. 229, including other
lands of the public domain suitable for agriculture.
More specifically the following lands are covered by the
Comprehensive Agrarian Reform Program:

❧
a. All alienable and disposable lands of the public
domain devoted to or suitable for agriculture. No
reclassification of forest or mineral lands to
agricultural lands shall be undertaken after the
approval of this Act until Congress, taking into
account ecological, developmental and equity
considerations, shall have determined by law, the
specific limits of the public domain.
b. All lands of the public domain in excess of the
specific limits as determined by Congress in the
preceding paragraph;
c. All other lands owned by the Government devoted
to or suitable for agriculture; and
d. All private lands devoted to or suitable for
agriculture regardless of the agricultural products
raised or that can be raised thereon.
 Lands covered by the
Agrarian Reform Law
❧
General Rule:
❧ All PUBLIC and PRIVATE
agricultural lands;
❧ Other lands of the PUBLIC
DOMAIN suitable for
agriculture;
 ❧

Illustration 5: PRIVATE
PROPERTY
Lands not covered by the Agrarian Reform Law
1. Private lands with a total area of 5 hectares and below;
2. Lands actually, directly and exclusively used for parks, wildlife,
forest reserves, reforestation, fish sanctuaries, and breeding

❧
grounds, watersheds and mangroves;
3. Private lands actually, directly, and exclusively used for prawn
farms and fishponds;
4. Lands actually, directly, and exclusively used and found
necessary for:
1. National defense;
2. School sites and campuses;
3. Experimental fam stations operated for educational purposes;
4. Seeds and seedling research and pilot production center;
5. Church sires and convents appurtenant thereto;
6. Mosque sites and Islamic centers appurtenant thereto;
7. Communal burial grounds and cemeteries;
8. Penal colonies and penal farms actually worked by the inmates;
9. Research and quarantine centers;
10. All lands with 18% slope and over, except those already
developed.
Section 7. Priorities

This provision lays down the scheme for the final acquisition
and distribution of all remaining agricultural lands during
the 5-year extension period up to June 30, 2014, in following
order of priority:

Phase One: Lands with an area of more than fifty (50)

hectares, to be completed by June 30, 2012, specifically:

● those which have already been subjected to a notice of

coverage issued on or before December 10, 2008;
● rice and corn lands;
● idle or abandoned lands;
● private lands voluntarily offered by the owners for
agrarian reform;
 ● lands foreclosed by government financial institutions;
● lands acquired by the Presidential Commission on Good
Government (PCGG); and
● all other lands owned by the government
devoted to or suitable for agriculture.

Phase Two: Lands twenty-four (24) hectares up to fifty (50)

hectares, to be completed by June 30, 2013, specifically:

● 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;
 ● all private agricultural land which have already been
subjected to a notice of coverage; and
● all remaining private agricultural lands regardless as
to whether these have been subjected to notices of
coverage or not.

Phase Three: All other private agricultural lands

commencing with large landholdings and proceeding to
medium and small landholdings under the following
schedule:

● Lands above ten (10) hectares up to twenty-four (24)

hectares to be completed by June 30, 2013; and
● Lands from the retention limit up to ten (10) hectares,
to be completed by June 30, 2014.
Only farmers (tenants or lessees) and regular farmworkers
actually tilling the lands, as certified under oath by the
Barangay Agrarian Reform Council and attested under
oath by landowners, are considered to be qualified
beneficiaries.

The intended beneficiary shall state under oath before

judge of the city or municipality court that he/she is
willing to work on the land to make it productive and to
assume the obligation of paying the amortization for the
compensation of the land and land taxes thereon.
Section 8. Multinational Corporations

Agricultural lands leased, held or possessed by

multinational corporations are also subject to compulsory
acquisition and distribution. The land shall be distributed
directly to the individual worker-beneficiaries.

If it is not economically feasible and sound to divide the

land, then they shall form a workers' cooperative or
association which will deal with the corporation by way
of lease or growers' agreement and other legitimate
purposes.
 ❧
Section 11.
Commercial Farming
❧ Commercial farms, which are private agricultural

❧
lands devoted to commercial livestock, poultry and
swine raising, and aquaculture including saltbeds,
fishponds and prawn ponds, fruit farms, orchards,
vegetable and cut-flower farms, and cacao, coffee
and rubber plantations, shall be subject to immediate
compulsory acquisition and distribution after (10)
years from the effectivity of the Act.n 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.
During the ten-year period, the government

❧
shall initiate the steps necessary to acquire
these lands, upon payment of just
compensation for the land and the
improvements thereon, preferably in favor of
organized cooperatives or associations, which
shall hereafter manage the said lands for the
worker-beneficiaries.
 ❧
If the DAR determines that the purposes for which this
deferment is granted no longer exist, such areas shall
automatically be subject to redistribution.
The provisions of Section 32 of the Act, with regard to
production-and income-sharing, shall apply to
commercial farms.
Commercial farms are
lands devoted to:
❧
❧ Saltbeds
❧ Fruit farms
❧ Orchards
❧ Vegetables and
cut-flower farms
❧ Cacao, coffee and rubber
plantation
Saltbeds
❧
Fruits Farms
❧
Orchards
❧
Vegetables and cut-flower farms
❧
Cacao, coffee and rubber
plantations
❧
 Implementation
❧
❧ from the effectivity of Comprehensive
Agrarian reform Law (i.e. June 15, 1988)
– for farms already existing when the
law took effect;

❧ from the first year of commercial

production and operation – for new
farms
 Modes of Acquisition
❧
❧ Voluntary Offer to Sell (VOS);
❧ Compulsary Acquition (CA);
❧ Direct Payment Scheme (DPS).
Manner of Distribution
❧
❧ Individually or
collectively
 Order of priority
❧
❧ Agricultural lessees and share tenants;
❧ Regular farm workers;
❧ Seasonal farm workers;
❧ Actual tillers or occupants of public lands;
❧ Collectives or cooperatives of the above
beneficiaries;
❧ Others directly working on the land.
 Qualifications:
❧
❧ Must be 18 years old at the time of the
filing of the application as beneficiary;
❧ Must have the willingness, aptitude, and
the ability to cultivate and make the land
productive; and
❧ Must have been employed in the
commercial farm between June 15, 1988
and June 15, 1998 or upon the expiration
of deferment.
 Disqualifications:
❧
❧ Farm workers who have retired from service,
whether optional or compulsory;
❧ Farm workers who have resigned from their
employment with the farm;
❧ Farm workers who have been dismissed for
cause;
❧ Farm workers, lessees or tenants who waive
or refuse to be a beneficiary; and
❧ Farm workers, lessees or tenants who have
committed a violation of agrarian reform
laws and regulations.
 Beneficiaries’ choice
❧
❧ To choose the type of agribusiness
venture arrangement that will maintain
the economic viability of the farm;
❧ To market their products or enter into
marketing arrangements; and
❧ To avail the services or assistance of
individuals, associations or NGO’s in
negotiating for the most advantageous
agribusiness venture arrangement,
enterprise development and capability
building.
Types of Agribusiness Venture
Arrangements
❧
❧ Joint Venture Arrangement
❧ Lease Arrangement
❧ Contract Growing/Growership
Arrangement
❧ Management Contract
❧ Build-Operate-Transfer Scheme
 Section 12:
❧
Determination of Lease Rentals. — In order to
protect and improve the tenurial and economic
status of the farmers in tenanted lands under the
retention limit and lands not yet acquired under
this Act, the DAR is mandated to determine and fix
immediately the lease rentals thereof in accordance
with Section 34 of Republic Act No. 3844, as
amended: provided, that the DAR shall
immediately and periodically review and adjust the
rental structure for different crops, including rice
and corn, or different regions in order to improve
progressively the conditions of the farmer, tenant
or lessee.
 Power of DAR to fix rentals
❧
❧ For lands devoted to rice and other crops
❧ For sugar cane lands
❧ For coconut lands
Section 13. Production-Sharing Plan.
Any enterprise adopting the scheme provided for in
Section 32 or operating under a production venture, lease,
management contract or other similar arrangement and any
farm covered by Sections 8 and 11 hereof is hereby

❧
mandated to execute within ninety (90) days from the
effectivity of this Act, a production-sharing plan, under
guidelines prescribed by the appropriate government
agency.
Section 13. Production-Sharing
Plan.
Any enterprise adopting the scheme provided for in
Section 32 or operating under a production venture, lease,
management contract or other similar arrangement and any
farm covered by Sections 8 and 11 hereof is hereby mandated

❧
to execute within ninety (90) days from the effectivity of this
Act, a production-sharing plan, under guidelines prescribed by
the appropriate government agency.
Nothing herein shall be construed to sanction the
diminution of any benefits such as salaries, bonuses, leaves
and working conditions granted to the employee-beneficiaries
under existing laws, agreements, and voluntary practice by the
enterprise, nor shall the enterprise and its
employee-beneficiaries be prevented from entering into any
agreement with terms more favorable to the latter.
 This provision which obliges the
establishment of a production-sharing
plan, applied to:
❧
❧
Farms operating under a production venture,
lease, management contract or other similar
arrangements;
❧ Farms leased or operated by multinational
corporations (Sec. 8)
❧ Commercial farms, i.e., those devoted to
saltbeds, fruit farms, orchards, vegetable and
cut flower farms, cacao, coffee or rubber
plantations. (Sec. 11)
 ❧
CHAPTER IV
REGISTRATION
 ❧
Section 14. Registration of
Landowners
 Within one hundred eighty (180) days from the effectivity of
this Act, all persons, natural or juridical, including government
entities, that own or claim to own agricultural lands, whether in

❧
their names or in the name of others, except those who have
already registered pursuant to Executive Order No. 229, who shall
be entitled to such incentives as may be provided for the PARC,
shall file a sworn statement in the proper assessor's office in the
form to be prescribed by the DAR, stating the following
information:
(a) the description and area of the property;
(b) the average gross income from the property for at least
three (3) years;
(c) the names of all tenants and farmworkers therein;
(d) the crops planted in the property and the area covered by
each crop as of June 1, 1987;
(e) the terms of mortgages, lease, and management contracts
subsisting as of June 1, 1987, and
(f) the latest declared market value of the land as determined
by the city or provincial assessor.
 Purpose of the Law
❧
The purpose of the sworn statement is to
help the Department of Agrarian Reform
identify the lands and their owners for
effective implementation of the agrarian
reform program.
This provision which obliges the establishment
of a production-sharing plan, applied to:

❧
❧
Farms operating under a production venture,
lease, management contract or other similar
arrangements;
❧ Farms leased or operated by multinational
corporations (Sec. 8)
❧ Commercial farms, i.e., those devoted to
saltbeds, fruit farms, orchards, vegetable and
cut flower farms, cacao, coffee or rubber
plantations. (Sec. 11)
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:

❧ a) names and members of their immediate farm

household;
❧ (b) owners or administrators of the lands they work on
and the length of tenurial relationship;
❧ (c) location and area of the land they work;
❧ (d) crops planted; and
❧ (e) 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.

Notes:
Purpose of the Law:

The purpose of requiring registration of

agricultural lessees, tenants, and farm workers is to
develop a databank of potential and qualified
beneficiaries for the effective implementation of the agrarian
reform program.
 ❧
.

CHAPTER V-Land
Acquisition
Section 16. Procedure for Acquisition of Private Lands.

❧
For purposes of acquisition of private lands, the following
procedures shall be followed:

(a) After having identified the land, the landowners and the
beneficiaries, the DAR 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 notice shall contain the offer of the DAR to pay a
corresponding value in accordance with the valuation set forth in
Sections 17, 18, and other pertinent provisions hereof.

(b) Within thirty (30) days from the date of receipt of written
notice by personal delivery or registered mail, the landowner, his
administrator or representative shall inform the DAR of his
acceptance or rejection of the offer.
 (c) If the landowner accepts the offer of the DAR, the Land
Bank of the Philippines (LBP) shall pay the landowner the

❧
purchase price of the land within thirty (30) days after he
executes and delivers a deed of transfer in favor of the
government and surrenders the Certificate of Title and other
muniments of title

(d) In case of rejection or failure to reply, the DAR shall

conduct summary administrative proceedings to determine
the compensation for the land requiring the landowner, the
LBP and other interested parties to submit evidence as to
the just compensation for the land, within fifteen (15) days
from the receipt of the notice. After the expiration of the above
period, the matter is deemed submitted for decision. The
DAR shall decide the case within thirty (30) days after it is
submitted for decision.
 (e) Upon receipt by the landowner of the corresponding
payment or, in case of rejection or no response from the
landowner, upon the deposit with an accessible bank
❧
designated by the DAR of the compensation in cash or in LBP
bonds in accordance with this Act, the DAR shall take
immediate possession of the land and shall request the proper
Register of Deeds to issue a Transfer Certificate of Title (TCT) in
the name of the Republic of the Philippines. The DAR shall
thereafter proceed with the redistribution of the land to the
qualified beneficiaries.

(f) Any party who disagrees with the decision may bring the
matter to the court of proper jurisdiction for final determination
of just compensation.
Notes:
Since land acquisition under the agrarian reform laws is an
extraordinary method of expropriation, it must be strictly construed.
Hence, the failure of the Department of Agrarian Reform or any of its
agencies to comply with the proper procedure for expropriation, (when
❧
no notice of coverage is issued) it should be treated as violation of
constitutional due process and sould be treated arbitrary, capricious,
whimsical, and tainted with grave abuse of discretion.

Title and ownership over the land will be transferred to the

Republic of the Philippines only upon full payment of the just
compensation. Until the just compensation is finally determined and
fully paid, the title and ownership remains with the landowner. This is
so even if the DAR has deposited the offered price with the Land Bank.
The mere fact, therefore that the DAR has deposited the offered price
does not warrant the cancellation of the owner’s title. ( Assoc. of Small Landowners
vs. Sec. of agrarian Reform)

Opening of a trust account does not constitute payment because

the law requires just compensation to be paid in cash and Land Bank
bonds and not by trust account.
 JUST
COMPENSATION
❧
Section 17. Determination of Just Compensation
 What is Just
Compensation?
❧
❧ defined as “the full and fair equivalent of the
property taken from its owner by the expropriator”
❧ the measure is not the taker’s gain but the owner’s
loss.
❧ the equivalent to be rendered for the property is
Substantial, Full and Ample.
 Two things to consider that
compensation is just
❧
❧ correct determination of the amount to be paid to the
landowner
❧ Prompt Payment
❧ payment within a reasonable time from its taking
❧ immediate deposit and release of the provisional
compensation
❧ it is also the full payment of the finally adjudged just
compensation
 Factors used in the
valuation of lands
❧
❧ a. cost of acquisition of the land
❧ b. value of standing crop
❧ c. current value of like properties
❧ d. its nature actual use and income
❧ e. sworn valuation of owner
❧ f. tax declarations
❧ g. assessment made by governor assessors
❧ h. 70% of the zonal valuation of the Bureau of
Internal Revenue (BIR)
 Basic Formula used to
Compute Land Value
❧
Variables
❧ a. Capitalized Net Income (CNI) based on land use and
productivity
❧ b. Comparable Sales (CS) based on zonal valuation of BIR
❧ c. Market Value based on tax declaration
 Equations
❧
❧ When all Factors are Present
CNI x 0.60+CSx0.30+MVx0.10=Land Value
❧ When CNI is not present
CSx0.90+MVx0.10=Land Value
❧ When CS factor is not present
CNIx0.90+MVx0.10=Land Value
❧ When CS and CNI factors are not present
MVx2=Land Value
 Reckoning of Valuation
❧
❧ Basis for determining valuation of property is based
on the time the property was taken from the owner
and appropriated by the government.

❧ If the government takes possession of the land before

the institution of expropriation proceedings, the
value should be fixed at the time of the taking of the
possession, not in the filing of the complaint
❧ Time of taking does not only refer to transferring of

❧
title to the Republic of the Philippines or its
beneficiaries but also when the agricultural land was
offered by the landowner approved the Presidential
Agrarian Reform Council (PARC) through stock
redistribution Scheme

❧ If there is undue delay in payment, the

determination of the value of the property is based
not at the time of the taking but at the time of full
payment.
 Procedure in Determining
Just Compensation
❧
1. Land Bank determines the value of the lands.
2. Using the Landbank’s valuation DAR makes an
offer to landowner.
3. If there is rejection as to the offer, the DAR shall
conduct a summary administrative proceeding to
determine just compensation inviting the
landowner, Land Bank and other interested parties
to submit evidences.
 Role of Department of
Agrarian❧ Reform
Adjudication Board
(DARAB)
❧ In order to check whether the land valuation done by
Landbank is in accordance with the rules or
administrative orders, summary administrative
proceedings are being conducted for the preliminary
determination of just compensation.
 ❧
❧ Provincial Agrarian Reform Adjudicators
(PARAD)-less than P10M
❧ Regional Reform Adjudicators (RARAD)-initial land
valuation is P10M to P50M
❧ DARAB- initial valuation is above P50M
 ❧
4. The party who disagrees with the
adjudicator may bring it to RTC
designated as Special Agrarian Court
for final determination.
❧ Valuation is not Conclusive
Landowner can still contest the same in the proper
court
❧
❧ Court Cannot disregard the Formula
Formula is mandatory and not mere guides which
the RTC may disregard

❧ Consent of beneficiary is not necessary in the

Determining Just compensation
the law does not mention participation of the
beneficiary.
Section 18. Valuation
and Mode of
Compensation
❧
 The LBP shall compensate the landowner in such
amounts as may be agreed upon by the landowner and

❧
the DAR and the LBP, in accordance with the criteria
provided for in Sections 16 and 17 and other pertinent
provisions hereof, or as may be finally determined y the
court, as the just compensation of the land.
The compensation shall be paid in one of the
following modes, at the option of the landowner:

A) Cash and Financial Instruments of the Government

payable as follows:

a. Land above 50 hectares:

i. 25% cash
ii. 75% in governmental financial instruments
b. Lands above 24 hectares to 50 hectares
i. 30% cash
ii. 70% governmental financial instruments

c. Lands 24 hectares and below

i. 35% cash ❧
ii. 65% governmental financial instruments

B. Shares of stock in government-owned or controlled

corporations, LBP preferred shares, physical assets or other
qualified investments in accordance with guidelines set by
the PARC;

C. Tax credits which can be used against any tax liability

D. LBP bonds which shall mature evry year until the 10th
year
Landowner cannot insist
in cash payment
❧ only
❧ It is not sanctioned by the agrarian reform
law
❧ Partly in cash, partly bonds, government
financial instruments, shares of stock in
GOCCs, tax credits or Land Bank bonds.
Features of the Land Bank
bonds
❧
❧
Ten percent (10%) of the face value of the bonds shall
mature every year from the date of issuance until the tenth
(10th) year.
❧ Bonds are transferable and negotiable.
❧ The bonds can be used for any of the following;:
i. Acquisition of land or any real properties of the
government, including assets under the Asset Privatization
Program and other assets foreclosed by the government
financial institutions in the same province or region where
the lands for which the bonds were paid are situated;
ii. Acquisition of land share of stock GOCCs or shares of
stocks owned by the government in private corporations;
iii. Bail bonds for the provisional release of the accused
persons, or performance bonds;
iv. Security for loans with government financial institution,
provided, that the proceeds of the loans shall be invested in
economic enterprise;
 Features of the Land
Bank bonds
v.
vi.
❧
Payments of various taxes and fees to government
Payment of the tuition fees of the immediate family of
the original bondholder in government universities,
colleges, trade schools, and other institutions;
vii. Payment of fees of the immediate family of the original
bondholder in government hospitals.
Section 19. Incentives for
Voluntary Offers for Sale
❧
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.
The Comprehensive Agrarian Reform Law of
1998
 Modes of Acquiring
Agricultural Land
❧
❧ Voluntary Offers for Sale (Sec. 19)
❧ Voluntary Land Transfer (Sec. 20)
❧ Compulsory Acquisition (Sec. 16)

The Comprehensive Agrarian Reform Law of

1998
 Voluntary Offers for Sale
(VOS)
❧
❧ Mode of acquiring private agricultural land by the
State.
❧ A scheme where the landowner/s voluntarily offer
their lands, specifically agricultural lands, for
coverage.
❧ Refers to all private agricultural lands which is offered
by the landowner to the State.

The Comprehensive Agrarian Reform Law of

1998
Documentary requirements
for VOS
❧
❧ Title
* If there is no Title yet, Proof of Ownership or
Instruments of Acquisition such as Deed of Sale or
Transfer shall be presented.
❧ Tax declaration
* Latest tax listing of the declared owners of the land
for the last 10 years immediately preceding the filing of
VOS
❧ Approved Survey or Sketch Plan
The Comprehensive Agrarian Reform Law of
1998
Compulsory Acquisition
(Sec.16)
❧
❧ Power of the State to acquire and expropriate
private agricultural land

* If the landowners fails to submit the documentary

requirement, the land will be subjected to compulsory
acquisition. (Ungos, p. 60)

The Comprehensive Agrarian Reform Law of

1998
 DAR Administrative Order No. 2, series
of 2009
❧
❧ Stated among others that “after June 30, 2009, the
modes of acquisition shall be limited to voluntary
offers to sell (VOS) and compulsory acquisition (CA)
and that voluntary land transfer (VLT) shall be
allowed only for landholdings submitted for VLT as
of June 30,2009.”

The Comprehensive Agrarian Reform Law of

1998
 Section 20. Voluntary
Land Transfer
❧
Landowners of agricultural lands subject to
acquisition under this Act may enter into a
voluntary arrangement for direct transfer of their
lands to qualified beneficiaries subject to the
following guidelines:

The Comprehensive Agrarian Reform Law of

1998
 a) All notices for voluntary land transfer must be
submitted to DAR within the first year of the

❧
implementation of the CARP. Negotiations between
the landowners and qualified beneficiaries covering
any voluntary land transfer which remain
unresolved after one (1) year shall not be recognized
and such land shall instead be acquired by the
government and transferred pursuant to this Act.
b) The terms and conditions of such transfer shall not
be less favourable to the transferee than those of the
government’s standing offer to purchase from the
landowner and to resell to the beneficiaries, if such
offers have been made and are fully known to both
parties.
c) The voluntary agreement shall include sanctions for
non-compliance by either party and shall be duly
recorded and its implementation monitored by the
DAR.

The Comprehensive Agrarian Reform Law of

1998
Voluntary Land Transfer
(VLT)
❧
❧ A direct transference of agricultural land from the
landowner to the qualified beneficiaries, free from
the State’s intervention.
❧ Predicament lies at paragraph 3 of the Section 20.
❧ No longer allowed as a mode of acquiring lands.
❧ Note:
“After June 30, 2009, the modes for acquisition are
limited to voluntary offer to sell and compulsory
acquisition.” (Ungos, p. 61)

The Comprehensive Agrarian Reform Law of

1998
 Section 21. Payment of
Compensation by
❧
Beneficiaries under
Voluntary Land Transfer
 Direct payments in cash or in kind maybe made by the
farmer-beneficiary to the landowner under terms to be

❧
mutually agreed upon by both parties, which shal be
binding upon them, upon registration with and approval
by the DAR. Said approval shall be considered given,
unless notice of disapproval is received by the
farmer-beneficiary within 30 days from date of registration.
 In the event they cannot agree on the price of the land,
the procedure for compulsory acquisition as provided in

❧
Section 16 shall apply. The LBP shall extend financing to
the beneficiaries for purposes of acquiring the land.
 Sec. 22
Qualified Beneficiaries
 Who are qualified to be a CARP
beneficiary? ☺

- A “landless resident” is a farmer or tiller who owns less than 3

hectares of land
- Must be:
a. Filipino citizen
b. Resident of the barangay or municipality where the landholding
is located
c. At least 15 years old at the time of identification, screening, and
selection
d. Willing, able, and equipped with aptitude to cultivate and make
the land productive
 A landless resident could be the
following:
• (a) agricultural lessees and share tenants;
• (b) regular farmworkers;
• (c) seasonal farmworkers;
• (d) other farmworkers;
• (e) actual tillers or occupants of public lands;
• (f) collectives or cooperatives of the above beneficiaries; and
• (g) others directly working on the land.
- Also, those farm workers who were qualified beneficiaries already
employed as of June 15, 1988 in the landholding.
- Managers on the said date are NOT qualified.
 Who are not qualified? ☹
• Those who don’t meet the qualification
• Those who waived their right in exchange for compensation,
provided that the waiver has not been questioned by a proper govt
entity
• Those who have not paid an aggregate of 3 annual amortizations
• Those who failed to redeem or repurchase an awarded land after 2
years of foreclosure
• Those dismissed for a cause
• Those who’ve obtained substantial equivalent equipment
 Who else are not qualified? ☹
• Those who retired or voluntarily resigned employment
• Those who misused the land or diverted the financial support services
• Those who misrepresented material facts in their basic qualifications
• Those who SOLD, DISPOSED, or ABANDONED the lands awarded
• Those who converted the lands for non-agricultural use without prior
approval
• Those finally adjudged guilty of forcible entry or unlawful detainer over
the property
• Those who violated agrarian reform laws and regulation
 ❧
SECTION 23. Distribution Limit
– No qualified beneficiary may
own more than three (3) hectares
of agricultural land.
 Maximum area that can be
owned by or awarded to
❧
beneficiaries
❧ Maximum agricultural land area that can be
owned by or awarded to an agrarian reform
beneficiary is three (3) hectares. Therefore, if a
tenant or farm worker already owns two (2)
hectares of agricultural land, he can still be
awarded one (1) hectares.
❧ If the particular landholding is not enough to
meet the 3-hectare award ceiling for each
agricultural lessee or tenant, the excess will be
distributed to them will be based on the actual
size of tillage by each lessee or tenant.
 Maximum area that can be owned
by or awarded to beneficiaries
❧
❧ If the landholding is more than enough to
accommodate the 3-hectare limit for each agricultural
lessee or tenant, the excess will be distributed to
agrarian reform beneficiaries in the following order:
(a) seasonal farm workers;
(b) other farm workers;
(c) actual tillers or occupants of public lands;
(d) collectives or cooperative of the above
beneficiaries.
 Maximum area that can be owned
by or awarded to beneficiaries
❧
❧ If it is not economically feasible and sound to
divide the excess land to the seasonal or other
farm workers, the following criteria for
prioritization shall be observed:
(a) willingness, aptitude, and ability to
cultivate and make the land productive;
(b) physical capacity; and
(c) length of service.
 Maximum area that can be owned
by or awarded to beneficiaries
❧
❧ If the seasonal or other farm workers equally meet
the foregoing criteria, priority shall be given to
those who have continuously worked on the
subject landholding. The other farm workers who
cannot be accommodated will be put in a wait list
of potential beneficiaries in other landholdings.
❧ If the beneficiaries opt for collective ownership,
such as farmers cooperative, the total area must
coincide with the total number of co-owners or
members multiplied by the 3-hectare limit.
 Factors to be considered in
determining the size of land to be
awarded
❧
❧ In determining the size of land for
distribution, the following factors are to be
considered:
(a) Type of crop;
(b) Type of soil;
(c) Weather patterns; and
(d) Other pertinent factors critical for
the success of the beneficiaries.
SECTION 24. Award
to Beneficiaries
❧
 SECTION 24. Award to
Beneficiaries
❧
❧ Transfer of ownership to the beneficiaries not
automatic
❧ When does the DAR issue a Certificate of Land
Ownership Award (CLOA)?
❧ CLOA is indefeasible
❧ Cancellation of CLOAs
❧ Grounds for Cancellation of CLOAs
❧ When will the rights and obligations of
beneficiaries commence?
❧ Obligations of Agrarian Reform Beneficiaries
 Transfer of ownership to the
beneficiaries not automatic
❧
❧ Compulsary acquisition does not mean
automatic transfer of ownership of the
land to the tenant, lessee, or farm
worker. Title and ownership over the
land can be transferred to the
beneficiaries only upon full payment of
the just compensation to the
landowner.
 When does the DAR issue a
Certificate of Land Ownership
Award❧ (CLOA)?
❧ The DAR will issue CLOA only upon
full payment of amortization by
farmer-beneficiary. The CLOA in turn,
becomes the basis for the issuance in his
name of an original or transfer
certificate of title.
 CLOA is indefeasible
❧
❧ CLOAs are titles brought under the operation of the
Torrens system. Hence, they are conferred with the same
indefeasibility and security as provided for by
Presidential Decree No. 1529, as amended by Republic
Act No. 6732.
❧ CLOAs and other titles issued under the agrarian
reform program become indefeasible and imprescriptible
after one (1) year from its registration with the Office of
the Registry of Deeds, subject to the conditions,
limitations and qualifications under Comprehensive
Agrarian Reform Law, the Property Registration Decree,
and other pertinent laws.
 Cancellation of CLOAs
❧
❧ All cases involving the cancellation of
CLOAs, and other titles issued under
any agrarian reform program are
within the exclusive and original
jurisdiction of the Secretary of the
Department of Agrarian Reform.
 Grounds for Cancellation of
CLOAs
❧
❧ CLOAs may be cancelled on the following grounds:
(a) Abandonment of the land;
(b) Neglect of misuse of the land;
(c) Failure to pay three (3) annual amortizations;
(d) Misuse or diversion of financial and support
services;
(e) Sale, transfer or conveyances of the right to use
the land; and
(f) Illegal conversion of the land.
 When will the rights and
obligations of beneficiaries
❧
commence?
❧ The rights and responsibilities of the
beneficiaries will begin from their receipt of a
duly registered CLOA and their actual
physical possession of the awarded land.
❧ Pending issuance if CLOA, the identified and
qualified agrarian reform beneficiaries have
usufructuary rights over the awarded land
which the Department of Agrarian Reform,
has taken possession.
 Obligations of Agrarian Reform
Beneficiaries
❧
❧ Agrarian reform beneficiaries are obliged to:
(a) Exercise due diligence in the use,
cultivation, and maintenance of the
land, including improvements
thereon; and
(b) Pay the Land Bank thirty (30) annual
amortizations with 6% interest per annum;
 ❧
❧ The amortization will start one (1) year from the date
of registration of the CLOA. However, if actual
occupancy of the land takes place after the
registration of the CLOA, the 1-year period shall be
reckoned from constructive occupation of the land
by the beneficiary.
 Section 27.
❧
Transferabilty of
Awarded Lands
 Sale of Transfer of
Awarded Lands
❧
❧ A agrarian reform beneficiaries cannot, within a
period of ten(10) years, sell or transfer ownership of
the land awarded to them,
1. Through hereditary succession
2. To the Government
3. To the Land Bank of the Philippines; or
4. To the other qualified beneficiaries
 Hereditary Succession
❧
❧ Succession by intestate or will to the compulsory
heirs-not succession to other person. It stems from
the policy of the government to develop generation
of farmers to attain its avowed goal to have an
adequate and sustained agricultural production with
certitude.
 Effect of Sale or Transfer to
the Government or Land
❧
Bank
❧ If beneficiary sells or transfers ownership of land to
the Government or to the Land Bank of the
Philippines., the children or spouse can repurchase
the land within 2 years from date of transfer.
Can beneficiary who has not
fully paid the amortizations
sell land ❧
to another?
❧ Under the following conditions, he may sell, transfer
or convey rights
1. The approval of DAR must be obtained
2. The land should be sold only to an heir of the
beneficiary or any other qualified beneficiary.
3. The transferee must undertake to cultivate the
land himself, otherwise Land Bank will take land for
proper disposition.
 Can beneficiary lease the
land to another person?
❧
❧ The beneficiary can lease the land to another person,
provided that the lease is also for agricultural
purposes otherwise the beneficiary may seek DAR’s
approval.
 Can beneficiary lease the
land to former landowner?
❧
❧ The beneficiary may lease the lad to former owner
subject to approval of DAR through the Provincial
Agrarian Reform Coordinating Committee.
Section 28. Standing Crops at
the time of Aquisition
❧
❧ The landowner retains his right over crops not yet
harvested at the time DAR took possession of land.
CHAPTER VIII
❧
Corporate Farms
Presented by: Kyzel Kay L. Obico
 Section 29
❧
Farms Owned or Operated by Corporations or Other Business
Associations. — In the case of farms owned or operated by
corporations or other business associations, the following rules
shall be observed by the PARC:
In general, lands shall be distributed directly to the individual
worker-beneficiaries.
In case it is not economically feasible and sound to divide the land,
then it shall be owned collectively by the workers' cooperative
or association which will deal with the corporation or business
association. Until a new agreement is entered into by and
between the workers' cooperative or association and the
corporation or business association, any agreement existing at the
time this Act takes effect between the former and the previous
landowner shall be respected by both the workers' cooperative or
association and the corporation or business association.
 Section 30
❧
Homelots and Farmlots for Members of
Cooperatives. — The individual members of
the cooperatives or corporations mentioned in
the preceding section shall be provided with
homelots and small farmlots for their family
use, to be taken from the land owned by the
cooperative or corporation.
 ❧
SECTION 31. Corporate
Landowners
SECTION 31. Corporate Landowners — Corporate landowners may voluntarily
transfer ownership over their agricultural landholdings to the Republic of the
Philippines pursuant to Section 20 hereof or to qualified beneficiaries, under
such terms and conditions, consistent with this Act, as they may agree upon,
subject to confirmation by the DAR.

Upon certification by the DAR, corporations owning agricultural lands may

give their qualified beneficiaries the right to purchase such proportion of the

❧
capital stock of the corporation that the agricultural land, actually devoted to
agricultural activities, bears in relation to the company's total assets, under such
terms and conditions as may be agreed upon by them. In no case shall the
compensation received by the workers at the time the shares of stocks are
distributed be reduced. The same principle shall be applied to associations,
with respect to their equity or participation.

Corporations or associations which voluntarily divest a proportion of their

capital stock, equity or participation in favor of their workers or other qualified
beneficiaries under this section shall be deemed to have complied with the
provisions of the Act: Provided, That the following conditions are complied
with:
❧ a) In order to safeguard the right of beneficiaries who own shares
of stocks to dividends and other financial benefits, the books of the
corporation or association shall be subject to periodic audit by

❧
certified public accountants chosen by the beneficiaries;
❧ b) Irrespective of the value of their equity in the corporation or
association, the beneficiaries shall be assured of at least one (1)
representative in the board of directors, or in a management or
executive committee, if one exists, of the corporation or
association; and
❧ c) Any shares acquired by such workers and beneficiaries shall
have the same rights and features as all other shares.
❧ d) Any transfer of shares of stocks by the original beneficiaries
shall be void ab initio unless said transaction is in favor of a
qualified and registered beneficiary within the same corporation.
❧ If within two (2) years from the approval of this Act, the land or
stock transfer envisioned above is not made or realized or the plan
for such stock distribution approved by the PARC within the same
period, the agricultural land of the corporate owners or
corporation shall be subject to the compulsory coverage of this Act.
Under Sec 31, there are two
schemes available to
❧
corporate landowners
a) Voluntary land transfer

b) Stock distribution

* The schemes under section 31 are no longer operative

 * The schemes under
section 31 are no longer
❧
operative
Both a) voluntary land transfer and b) stock
distribution are no longer operative. Section 7
of the Comprehensive Agrarian Reform Law,
as amended by Republic Act No. 9700,
allowed both schemes only up to June 30,
2009. After that date, the modes of acquisition
are limited to voluntary offer to sell and
compulsory acquisition
SECTION 32. Production-Sharing — Pending final land transfer,
individuals or entities owning, or operating under lease or management

❧
contract, agricultural lands are hereby mandated to execute a
production-sharing plan with their farm workers or farmworkers'
reorganization, if any, whereby three percent (3%) of the gross sales from the
production of such lands are distributed within sixty (60) days of the end of the
fiscal year as compensation to regular and other farmworkers in such lands
over and above the compensation they currently receive: Provided, That these
individuals or entities realize gross sales in excess of five million pesos per
annum unless the DAR, upon proper application, determines a lower ceiling.
In the event that the individual or entity realizes a profit, an additional ten
percent (10%) of the net profit after tax shall be distributed to said regular and
other farmworkers within ninety (90) days of the end of the fiscal year.
To forestall any disruption in the normal operation of lands to be turned over to
the farmworker-beneficiaries mentioned above, a transitory period, the length
of which shall be determined by the DAR, shall be established.
During this transitory period, at least one percent (1%) of the gross sales of the
entity shall be distributed to the managerial, supervisory and technical group in
place at the time of the effectivity of this Act, as compensation for such
transitory managerial and technical functions as it will perform, pursuant to an
agreement that the farmworker-beneficiaries and the managerial, supervisory
and technical group may conclude, subject to the approval of the DAR.
 Section 32 – A
Transitory
❧ Provision
This provision applies only while the land transfer is being
processed and finalized. The scheme requires individuals or
entities owning, or operating an agricultural land under lease or
management contract to adopt a production sharing with farm
workers in the following manner:

a) If more than P5M gross sales/year are realized:

i) 3% of the gross sales – to be distributed to regular and other
farm workers (over and above the compensation they currently
receive)
ii) 1% of gross sales – to be distributed to the managerial,
supervisory and technical employees.

b) If profits are realized – additional 10% of the net profits are

tax, to be distributed to regular and other farmworkers.
 Section 32 – Declared
Unconstitutional with respect
❧
to livestock and poultry
Section 32 of the Comprehensive Agrarian Reform Law
which directs corporate farms to execute and implement
production-sharing plans (pending final redistribution of
their landholdings), is unreasonable, confiscatory, and
violative of due process, hence, null and void for being
unconstitutional, insofar as it includes the livestock, poultry
and swine farms in its coverage.
SECTION 32-A. Incentives — Individuals or entities owning or
operating fishponds and prawn farms are hereby mandated to
execute within six months from effectivity of this Act an

❧
incentive plan with their regular fishpond or prawn
farmworkers or fishpond or prawn farm workers’ organization,
if any, whereby seven point five percent (7.5%) of their net profit
before tax from the operation of the fishpond or prawn farms are
distributed within sixty (60) days at the end of the fiscal year
as compensation to regular and other pond workers in such
ponds over and above the compensation they currently receive.

In order to safeguard the right of the regular fishpond or

prawn farm workers under the incentive plan, the books of the
fishpond or prawn farm owners shall be subject to periodic audit
or inspection by certified public accountants chosen by the
workers.

The foregoing provision shall not apply to agricultural lands

subsequently converted to fishpond or prawn farms provided
the size of the land converted does not exceed the retention limit
of the landowner.
 Section 32-A Incentives
❧
Incentives for Regular Fishpond or Prawn Farm
Workers

This provision applies to individuals or entities

owning or operating fishponds and prawn farms. The
incentive is 7.5% of the net profit before tax.
 SECTION 33
❧
Payment of Shares of Cooperative or Association
 ❧
❧ Shares of a cooperative or association
acquired by farmer-beneficiaries or
worker-beneficiaries shall be fully paid for in
an amount corresponding to the valuation as
determined in the immediately succeeding
section. The land-owner and the LBP shall
assist the farmer-beneficiaries and
worker-beneficiaries in the payment for said
shares by providing credit financing.
 NOTES:
❧
Value of shares
The value of shares of a cooperative or association
will be determined by the Land Bank.
SECTION 34
❧
Valuation of Lands
 ❧
❧ A valuation scheme for the land shall be formulated
by the PARC, taking into account the factors
enumerated in Section 17, in addition to the need to
stimulate the growth of cooperatives and the
objective of fostering responsible participation of the
worker-beneficiaries in the creation of wealth.
 ❧
❧ In the determination of a price that is just not only to
the individual but to society as well, the PARC shall
consult closely with the land owner and the worker
beneficiaries.
 ❧
❧ In the case of disagreement, the price as determined
by the PAARC, if accepted by the
worker-beneficiaries, shall be followed, without
prejudice to the landowner’s right to petition the
Special Agrarian Court to resolve the issue of
valuation.
 NOTES:
❧
The Land Bank now determines the valuation
❧ Executive Order No. 405 promulgated on June 14,
1990, has transferred the authority of the Presidential
Agrarian Reform Council (PARC) to determine the
valuation or just compensation to the Land Bank.
Section 1 of the said Executive Order provides as
follows:
 ❧
❧ “SECTION 1.
The Land Bank of the Philippines shall be primarily
responsible for the determination of the land valuation
and compensation for all private lands suitable for
agriculture under either the Voluntary Offer to Sell (
VOS) or Compulsory Acquisition (CA) arrangement as
governed by Republic Act No. 6657. The Department of
Agrarian Reform shall make use of the determination of
the land valuation and compensation by the Land Bank
of the Philippines, in the performance of its functions.”
 Sec. 35
❧
Creation of Support Services Office
 What is it?
❧
❧ The office of the DAR that provides general support
and coordinative services in the implementation of
the program with particular services to
farmer-beneficiaries and affected landowners.
❧ the Office of Support Services is headed by an
Undersecretary of the department (details on her
later)
 Specific services
❧
❧ 1) Irrigation facilities, especially second crop or dry
season irrigation facilities;
❧ 2) Infrastructure development and public works projects
in areas and settlements that come under agrarian
reform, and for this purpose, the preparation of the
physical development plan of such settlements providing
suitable barangay sites, potable water and power
resources, irrigation systems and other facilities for a
sound agricultural development plan;
❧ 3) Government subsidies for the use of irrigation
facilities;
❧ 4) Price support and guarantee for all agricultural
produce;
 ❧
❧ 5) Extending to small landowners, farmers' organizations the
necessary credit, like concessional and collateral-free loans, for
agro-industrialization based on social collaterals like the
guarantees of farmers' organization:
❧ 6) Promoting, developing and extending financial assistance to
small-and medium-scale industries in agrarian reform areas;
❧ 7) Assigning sufficient numbers of agricultural extension
workers to farmers' organizations;
❧ 8) Undertake research, development and dissemination of
information on agrarian reform and low-cost and ecologically
sound farm inputs and technologies to minimize reliance on
expensive and imported agricultural inputs;
 ❧
❧ 9) Development of cooperative management skills
through intensive training;
❧ 10) Assistance in the identification of ready markets
for agricultural produce and training in other various
prospects of marketing; and
❧ 11) Administration operation management and
funding of support services, programs and projects
including pilot projects and models related to
agrarian reform as developed by the DAR.
 Who is the DAR
undersecretary for the Office
of Support❧Services?
❧ Atty. EMILY O. PADILLA
❧ Former DILG Undersecretary

Source: Rappler
 How can you get a hold
of the Undersecretary?
❧
❧ Atty. EMILY O. PADILLA
Undersecretary
Support Services Office (SSO)
❧ https://www.facebook.com/DARUndersecretaryE
milyPadilla/
❧ 426-7484; 
454-5086; 
455-2343; 
928-6429
❧ usec.sso@dar.gov.ph
 ❧

Source: Facebook
Their office is also in Diliman.

❧
❧