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CARL 1 To 40 PDF
CARL 1 To 40 PDF
CARL 1 To 40 PDF
Joyrich Golangco 1
Agrarian Reform Program is founded on the right of the Agrarian Reform – means redistribution of lands,
farmers and regular farm workers who are landless, to regardless of crops or fruits produced to farmers and
own directly or collectively the lands they till or, in the regular farmworkers who are landless, irrespective of
case of other farm workers, to receive a just share in the tenurial agreement, to include the totality of factors and
fruits thereof. support services designed to life the economic status of
the beneficiaries and all other arrangements alternative
Social Legislation – no precise definition to the physical redistribution of lands, such as production
- Broad as it covers labor laws, agrarian laws, or profit-sharing, labor administration, and the
and welfare laws distribution of shares of stocks, which will allow
- The emphasis is more on the aspect of general beneficiaries to receive a just share if the fruits of the
public good and social welfare lands they work.
- These laws are enacted pursuant to the social
justice clause of the Constitution Agrarian Reform is not confined to the distribution of
lands to the landless farmers and regular farmworkers.
REPUBLIC ACT NO. 6657 It includes alternative modes such as:
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1998 a) Labor administration
b) Profit-Sharing, and
AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN c) Stock Distribution
REFORM PROGRAM TO PROMOTE SOCIAL JUSTICE AND
INDUSTRIALIZATION, PROVIDING THE MECHANISM FOR ITS The reason for this is because it is not feasible considering
IMPLEMENTATION, AND FOR OTHER PURPOSES that there are not enough agricultural lands that can be
distributed to every farmer or regular farmworker.
CHAPTER I
Preliminary Chapter APPLICABILITY OF CARL
P Applies ONLY to AGRICULTURAL LANDS
SECTION 1. Title. — This Act shall be known as the N Does not apply to lands classified as residential,
Comprehensive Agrarian Reform Law of 1988. commercial, industrial, mineral, or forest land
AGRICULTURAL LAND
Agrarian Law
- refers to land devoted to agricultural activities
- Embraces all laws that govern and regulate
the rights and relationship over agricultural - contemplates lands that are arable and suitable
lands between landowners, tenants, lessees or for farming
agricultural workers.
NATALIA REALTY v. DAR retention limits set forth in this Act, having taken into
225 SCRA 279 (1992) account ecological, developmental, and equity
considerations, and subject to the payment of just
Facts: Natalia Realty Inc is the owner of a 125-hectare compensation. The State shall respect the right of
land in Antipolo, Rizal. On April 18, 1979, Presidential small landowners, and shall provide incentives for
Proclamation No 1637 set aside 20,312 hectares of voluntary land-sharing.
land located in Antipolo, San Mateo, Montalban as
townsite areas to absorb the population overspill in The State shall recognize the right of farmers,
the metropolis. The NATALIA properties were situated farmworkers and landowners, as well as cooperatives
within the areas proclaimed as townsite reservation. and other independent farmers' organizations, to
participate in the planning, organization, and
Private landowners were allowed to develop their management of the program, and shall provide
properties into low-cost housing subdivisions within support to agriculture through appropriate
the reservation. The Human Settlements Regulatory technology and research, and adequate financial
Commission (now the HLURB) granted NATALIA the production, marketing and other support services.
necessary permits to develop the land into a The State shall apply the principles of agrarian reform,
subdivision. or stewardship, whenever applicable, in accordance
with law, in the disposition or utilization of other natural
When CARL took effect, the DAR issued a Notice of resources, including lands of the public domain,
Coverage on the underdeveloped portions of the under lease or concession, suitable to agriculture,
subdivision. NATALIA sought the cancellation of the subject to prior rights, homestead rights of small
Notice of Coverage on the ground that the lands in settlers and the rights of indigenous communities to
question ceased to be agricultural lands when PP their ancestral lands.
1637 transformed it into a townsite reservation.
The State may resettle landless farmers and
Issue: WON the undeveloped portions of the NATALIA farmworkers in its own agricultural estates, which shall
properties are covered by the CARL? be distributed to them in the manner provided by
law.
Held: The undeveloped portions of the NATALIA
properties were not covered by CARL because they By means of appropriate incentives, the State shall
are not agricultural lands. Agricultural lands do not encourage the formation and maintenance of
include commercial, industrial, or residential lands. economic-size family farms to be constituted by
The NATALIA properties ceased to be agricultural individual beneficiaries and small landowners.
lands upon the approval of their inclusion in the The State shall protect the rights of subsistence
townsite reservation. fishermen, especially of local communities, to the
preferential use of communal marine and fishing
CONSTITUTIONALITY OF CARL resources, both inland and offshore. It shall provide
It is a valid exercise of police power. support to such fishermen through appropriate
technology and research, adequate financial,
SECTION 2. Declaration of Principles and Policies. — It production and marketing assistance and other
is the policy of the State to pursue a Comprehensive services. The State shall also protect, develop and
Agrarian Reform Program (CARP). The welfare of the conserve such resources. The protection shall extend
landless farmers and farmworkers will receive the to offshore fishing grounds of subsistence fishermen
highest consideration to promote social justice and to against foreign intrusion. Fishworkers shall receive a
move the nation toward sound rural development just share from their labor in the utilization of marine
and industrialization, and the establishment of owner and fishing resources.
cultivatorship of economic-size farms as the basis of
Philippine agriculture. The State shall be guided by the principles that land
has a social function and land ownership has a social
To this end, a more equitable distribution and responsibility. Owners of agricultural lands have the
ownership of land, with due regard to the rights of obligation to cultivate directly or through labor
landowners to just compensation and to the administration the lands they own and thereby make
ecological needs of the nation, shall be undertaken the land productive.
to provide farmers and farmworkers with the
opportunity to enhance their dignity and improve the The State shall provide incentives to landowners to
quality of their lives through greater productivity of invest the proceeds of the agrarian reform program
agricultural lands. to promote industrialization, employment and
privatization of public sector enterprises. Financial
The agrarian reform program is founded on the right instruments used as payment for lands shall contain
of farmers and regular farmworkers, who are landless, features that shall enhance negotiability and
to own directly or collectively the lands they till or, in acceptability in the marketplace.
the case of other farm workers, to receive a just share
of the fruits thereof. To this end, the State shall The State may lease undeveloped lands of the public
encourage and undertake the just distribution of all domain to qualified entities for the development of
agricultural lands, subject to the priorities and capital intensive farms, and traditional and
pioneering crops especially those for exports subject from landowners to farmworkers, tenants and other
to the prior rights of the beneficiaries under this Act. agrarian reform beneficiaries, whether the disputants
stand in the proximate relation of farm operator and
Primary Objective of Agrarian Reform: is to breakup beneficiary, landowner and tenant, or lessor and
agricultural lands and transform them into economic- lessee.
size farms to be owned by the farmers themselves, with (e)Idle or Abandoned Land refers to any agricultural
the end in view of uplifitng their socio-economic status. land not cultivated, tilled or developed to produce
any crop nor devoted to any specific economic
Ø Agrarin Reform Program is founded on the right of purpose continuously for a period of three (3) years
farmers and regular farm workers who are landless, to immediately prior to the receipt of notice of
own directly or collectively the lands they till or, in the acquisition by the government as provided under this
case of other farm workers, to receive a just share in the Act, but does not include land that has become
fruits thereof. permanently or regularly devoted to non-agricultural
Ø But it does not guarantee improvement in the lives of the purposes. It does not include land which has become
agrarian reform beneficiaries – at the best, it merely unproductive by reason of force majeure or any other
provides for a possibility or a favorable chance of fortuitous event, provided that prior to such event,
uplifiting the economic status of the agrarian reform such land was previously used for agricultural or other
beneficiaries, which may or may not be attained economic purpose.
(f)Farmer refers to a natural person whose primary
MEANING OF ECONOMIC FAMILY-SIZE FARM livelihood is cultivation of land or the production of
ECONOMIC FAMILY-SIZE FARM – area of farm land that agricultural crops, either by himself, or primarily with
permit efficient use of labor and capital resources of the the assistance of his immediate farm household,
farm family and will produce an income sufficient to whether the land is owned by him, or by another
provide a modest standard of living to meet a farm person under a leasehold or share tenancy
family’s needs for food, clothing, shelter, and education agreement or arrangement with the owner thereof.
with possible allowance for payment of yearly (g)Farmworker is a natural person who renders
installments on the land, and reasonable reserves to services for value as an employee or laborer in an
absorb yearly fluctuations in income. agricultural enterprise or farm regardless of whether
his compensation is paid on a daily, weekly, monthly
SECTION 3. Definitions. — For the purpose of this Act, or "pakyaw" basis. The term includes an individual
unless the context indicates otherwise: whose work has ceased as a consequence of, or in
(a) Agrarian Reform means the redistribution of lands, connection with, a pending agrarian dispute and
regardless of crops or fruits produced to farmers and who has not obtained a substantially equivalent and
regular farmworkers who are landless, irrespective of regular farm employment.
tenurial arrangement, to include the totality of factors (h)Regular Farmworker is a natural person who is
and support services designed to lift the economic employed on a permanent basis by an agricultural
status of the beneficiaries and all other arrangements enterprise or farm.
alternative to the physical redistribution of lands, such (i)Seasonal Farmworker is a natural person who is
as production or profit-sharing, labor administration, employed on a recurrent, periodic or intermittent
and the distribution of shares of stocks, which will basis by an agricultural enterprise or farm, whether as
allow beneficiaries to receive a just share of the fruits a permanent or a non-permanent laborer, such as
of the lands they work. "dumaan", "sacada", and the like.
(b)Agriculture, Agricultural Enterprise or Agricultural (j)Other Farmworker is a farmworker who does not fall
Activity means the cultivation of the soil, planting of under paragraphs (g), (h) and (i).
crops, growing of fruit trees, raising of livestock, (k)Cooperatives shall refer to organizations
poultry or fish, including the harvesting of such farm composed primarily of small agricultural producers,
products, and other farm activities and practices farmers, farmworkers, or other agrarian reform
performed by a farmer in conjunction with such beneficiaries who voluntarily organize themselves for
farming operations done by persons whether natural the purpose of pooling land, human, technological,
or juridical. financial or other economic resources, and operated
(c)Agricultural Land refers to land devoted to on the principle of one member, one vote. A juridical
agricultural activity as defined in this Act and not person may be a member of a cooperative, with the
classified as mineral, forest, residential, commercial same rights and duties as a natural person.
or industrial land. (l)Rural women refers to women who are engaged
(d)Agrarian Dispute refers to any controversy relating directly or indirectly in farming and/or fishing as their
to tenurial arrangements, whether leasehold, source of livelihood, whether paid or unpaid, regular
tenancy, stewardship or otherwise, over lands or seasonal, or in food preparation, managing of the
devoted to agriculture, including disputes household, caring for the children, and other similar
concerning farmworkers' associations or activities.
representation of persons in negotiating, fixing,
maintaining, changing, or seeking to arrange terms or RAISING OF LIVESTOCK, POULTRY OR FISH NOT EMBRACED
conditions of such tenurial arrangements. IN THE TERM “AGRICULTURE”
It includes any controversy relating to
compensation of lands acquired under this Act and Lands devoted to raising of livestock, poultry, and swine
other terms and conditions of transfer of ownership are classified as industrial.
one (1) year from the time the landowner manifests Reform Officer (MARO) will designate the retained area
his choice of the area for retention. for the landowner
In all cases, the security of tenure of the farmers or Ø If the landowner disagrees with the selected area for
farmworkers on the land prior to the approval of this retention: he may file a protest with MARO
Act shall be respected.
Upon the effectivity of this Act, any sale, disposition, Q: Can the landowner exercise his right of retention over
lease, management, contract or transfer of the land which has already been covered by an
possession of private lands executed by the original Emancipation Patent or Certificate of Land Ownership
landowner in violation of this Act shall be null and Award?
void: Provided, however, That those executed prior to
this Act shall be valid only when registered with the A: the issuance of an EP or CLOA to the beneficiaries
Register of Deeds within a period of three (3) months does not absolutely bar the landowner from retaining
after the effectivity of this Act. Thereafter, all Registers the area covered thereby.
of Deeds shall inform the Department of Agrarian
Reform (DAR) within thirty (30) days of any transaction If the landowner has been deprived of his right of
involving agricultural lands in excess of five (5) retention, he may file a petition for cancellation of the
hectares. EP or CLOA that may have been issued to the tenants.
Q: Can a landowner who has already exercised his A: The tenant may choose whether to:
retention rights under PD 27 be entitled to the retention 1. Remain therein, or
rights under CARL? 2. Be a beneficiary in the same or another
agricultural land with similar or comparable
A: If the landowner has exercised his retention limits features
under PD 27, he can no longer exercise the retention
right under CARL. When will the tenant exercise this option: within 1 year
from the time the landowner manifests his choice of the
However, if the landowner chooses to retain 5 hectares area for retention.
under CARL, the 7 hectares retained by him under PD 27
shall be immediately placed under the coverage of P The law speaks of a tenant, and not just any settler on
CARL. the land. The relationship of landlord-tenant must exist.
N Mere occupation or cultivation of an agricultural land
Q: Can spouses retain 5 hectares each under the will not ipso facto make the tiller and agricultural tenant.
agrarian reform law? P The person claiming to be an agricultural tenant must
prove by substantial evidence the existence of landlord-
A: It depends: tenant relationship.
a. If the property regime is conjugal and absolute
community – the spouses can retain only 5 The relationship can be determined by the following
hectares elements:
b. If the property regime is separation of property 1. The landowner has engaged a person to
– the spouses can retain 5 hectares each (10h personally cultivate an agricultural land; and
hectares total) 2. The landowner is compensated in terms of share
in the produce (share tenancy) or in terms of a
Q: Who has the right to choose the retention area? price certain or ascertainable in produce or in
money or both (leasehold tenancy).
A:
Ø the landowner has the right to choose the area to be EFFECT IF THE TENANT CHOOSES TO REMAIN IN THE
retained RETAINED AREA
Ø The chosen area should be compact and contiguous He will no longer be considered as a tenant but as an
Ø as long as the retained area is: agricultural lessee and, he will no longer qualify as an
1. compact and contiguous agrarian reform beneficiary.
2. does not exceed 5 hectares
the landowner’s choice of the retained area MUST Rights of an Agricultural Lessor
PREVAIL 1. Peaceful possession and enjoyment of the land
Ø When to exercise the right of retention: 60 days from the 2. Manage and work on the land in a manner and
receipt of the Notice of Coverage method of cultivation and harvest which conform
Ø If the landowner does not exercise his right of retention to proven farm practices
within the specified period: the Municipal Agrarian 3. Mechanize all or any phrase of his farm work
It can be seen that both the Constitution and CARL à This section is an implied recognition that the uniform
respect the superiority of the rights of the homesteader setting of a 5- hectare limit for all agricultural landholding
over the rights of the tenants. may not be feasible, considering the economic
differences for each type of agricultural product.
While the ARL is a remedial measure promulgated
pursuant to the social justice precepts of the SEC. 7. Priorities. - The DAR, in coordination with the
Constitution, it cannot be invoked to defeat the very Presidential Agrarian Reform Council (PARC) shall
purpose of the enactment of CA 141. plan and program the final acquisition and
distribution of all remaining unacquired and
The Homesteader Act has been enacted for the welfare undistributed agricultural lands from the effectivity of
and protection of the poor. The law gives a needy citizen this Act until June 30, 2014. Lands shall be acquired
a piece of land where he may build a modest house for and distributed as follows:
himself and family and plant what is necessary for
subsistence and for the satisfaction of life’s other needs. Phase One: During the five (5)-year extension period
hereafter all remaining lands above fifty (50) hectares
Therefore, the owners (or their direct compulsory heirs) of shall be covered for purposes of agrarian reform
lands acquired through homestead grants or Free upon the effectivity of this Act. All private agricultural
Patents under CA 141 are entitled to retain the entire lands of landowners with aggregate landholdings in
area (even if it exceeds 5 hectares) provided that: excess of fifty (50) hectares which have already been
a. They were cultivating the same at the time of the subjected to a notice of coverage issued on or
approval of the CARL and before December 10, 2008; rice and corn lands under
b. They continue to cultivate the same Presidential Decree No. 27; all idle or abandoned
lands; all private lands voluntarily offered by the
SEC. 6-A. Exception to Retention Limits. - Provincial, owners for agrarian reform: Provided, That with
city and municipal government ,units acquiring respect to voluntary land transfer, only those
private agricultural lands by expropriation or other submitted by June 30, 2009 shall be
modes of acquisition to be used for actual, direct and allowed Provided, further, That after June 30, 2009,
exclusive public purposes, such as roads and bridges, the modes of acquisition shall be limited to voluntary
public markets, school sites, resettlement sites, local offer to sell and compulsory
government facilities, public parks and barangay acquisition: Provided, furthermore, That all previously
plazas or squares, consistent with the approved local acquired lands wherein valuation is subject to
comprehensive land use plan, shall not be subject to challenge by landowners shall be completed and
the five (5)-hectare retention limit under this Section finally resolved pursuant to Section 17 of Republic Act
and Sections 70 and 73(a) of Republic Act No. 6657, No. 6657, as amended: Provided, finally, as
as amended: Provided, That lands subject to CARP mandated by the Constitution, Republic Act No.
shall first undergo the land acquisition and distribution 6657, as amended, and Republic Act No. 3844,as
process of the program: Provided, further, That when amended, only farmers (tenants or lessees) and
these lands have been subjected to expropriation, regular farmworkers actually tilling the lands, as
the agrarian reform beneficiaries therein shall be paid certified under oath by the Barangay Agrarian
just compensation Reform Council (BARC) and attested under oath by
the landowners, are the qualified beneficiaries. The
EXPROPRIATION OF PRIVATE AGRICULTURAL LANDS BY intended beneficiary shall state under oath before
LOCAL GOVERNMENT UNITS the judge of the city or municipal court that he/she is
willing to work on the land to make it productive and
If the LGU expropriates a private agricultural land for to assume the obligation of paying the amortization
actual, direct, and exclusive public purposes, the DAR for the compensation of the land and the land taxes
should first subject it to agrarian reform coverage. thereon; all lands foreclosed by government financial
institutions; all lands acquired by the Presidential
Process: Commission on Good Government (PCGG); and all
1. The land should first be acquired by the national other lands owned by the government devoted to or
government through the DAR who will pay just suitable for agriculture, which shall be acquired and
compensation to the landowner distributed immediately upon the effectivity of this
2. Thereafter, the DAR will distribute the land to the Act, with the implementation to be completed by
agrarian reform beneficiaries June 30, 2012;
3. After distribution, the LGU will expropriate the land
and pay the agrarian reform beneficiaries the just Phase Two: (a) Lands twenty-four (24) hectares up to
compensation fifty (50) hectares shall likewise be covered for
purposes of agrarian reform upon the effectivity of
SEC. 6-B. Review of Limits of Land Size. - Within six (6) this Act. All alienable and disposable public
months from the effectivity of this Act, the DAR shall agricultural lands; all arable public agricultural lands
submit a comprehensive study on the land size under agro-forest, pasture and agricultural leases
appropriate for each type of crop to Congress for a already cultivated and planted to crops in
possible review of limits of land sizes provided in this accordance with Section 6, Article XIII of the
Act. Constitution; all public agricultural lands which are to
be opened for new development and resettlement:
and all private agricultural lands of landowners with been completed: Provided, That notwithstanding the
aggregate landholdings above twenty-four (24) above schedules, phase three (b) shall not be
hectares up to fifty (50) hectares which have already implemented in a particular province until at least
been subjected to a notice of coverage issued on or ninety percent (90%) of the provincial balance of that
before December 1O, 2008, to implement principally particular province as of January 1, 2009 under Phase
the rights of farmers and regular farmworkers, who are One, Phase Two (a), Phase Two (b),,and Phase Three
landless, to own directly or collectively the lands they (a), excluding lands under the jurisdiction of the
till, which shall be distributed immediately upon the Department of Environment and Natural Resources
effectivity of this Act, with the implementation to be (DENR), have been successfully completed.
completed by June 30, 2012; and
The PARC shall establish guidelines to implement the
(b) All remaining private agricultural lands of above priorities and distribution scheme, including
landowners with aggregate landholdings in excess of the determination of who are qualified beneficiaries:
twenty-four (24) hectares, regardless as to whether Provided, That an owner-tiller may be a beneficiary of
these have been subjected to notices of coverage or the land he/she does not own but is actually
not, with the implementation to begin on July 1, 2012 cultivating to the extent of the difference between
and to be completed by June 30, 2013; the area of the land he/she owns and the award
"Phase Three: All other private agricultural lands ceiling of three (3) hectares: Provided, further, That
commencing with large landholdings and collective ownership by the farmer beneficiaries shall
proceeding to medium and small landholdings under be subject to Section 25 of Republic Act No. 6657, as
the following schedule: amended: Provided, furthermore, That rural women
(a) Lands of landowners with aggregate landholdings shall be given the opportunity t o participate in the
above ten (10) hectares up to twenty- four development planning and implementation of this
(24)hectares, insofar as the excess hectarage above Act: Provided, finally, That in no case should the
ten (10) hectares is concerned, to begin on July agrarian reform beneficiaries' sex, economic,
1,2012 and to be completed by June 30, 2013; and religious, social, cultural and political attributes
(b) Lands of landowners with aggregate landholdings adversely affect the distribution of lands.
from the retention limit up to ten (10) hectares, to
begin on July 1, 2013 and to be completed by June ACQUISITION AND DISTRIBUTION SCHEME
30, 2014; to implement principally the right of farmers The provision lays down the scheme for the final
and regular farmworkers who are landless, to own acquisition and distribution of all remaining agricultural
directly or collectively the lands they till. lands during the 5 year extension up to June 30, 2014, in
the following order of priority:
The schedule of acquisition and redistribution of all 1. Lands with an area of more than 50 hectares to be
agricultural lands covered by this program shall be completed by June 30, 2012 specifically:
made in accordance with the above order o f a. Those which have already been subjected to
priority, which shall be provided in the implementing Notice of Coverage on or before Dec. 10,
rules to be prepared by the PARC, taking into 2008
consideration the following: the landholdings wherein b. Rice and corn lands
the farmers are organized and understand ,the c. Idle or abandoned lands
meaning and obligations of farmland ownership; the - Refers to any agricultural land not
distribution of lands to the tillers at the earliest cultivated, tilled, or developed to
practicable time; the enhancement of agricultural produce any crop nor devoted to any
productivity; and the availability of funds and specific economic purpose continuously
resources to implement and support the program: for a period of three (3) years
Provided, That the PARC shall design and conduct immediately prior to the receipt of notice
seminars, symposia, information campaigns, and of acquisition by the government as
other similar programs for farmers who are not provided under this Act, but does not
organized or not covered by any landholdings. include land that has become
Completion by these farmers of the aforementioned permanently or regularly devoted to non-
seminars, symposia, and other similar programs shall agricultural purposes. It does not include
be encouraged in the implementation of this Act land which has become unproductive by
particularly the provisions of this Section. reason of force majeure or any other
fortuitous event, provided that prior to
Land acquisition and distribution shall be completed such event, such land was previously
by June 30, 2014 on a province-by- province basis. In used for agricultural or other economic
any case, the PARC or the PARC Executive purpose.
Committee (PARC EXCOM), upon recommendation d. Private lands voluntarily offered by the
by the Provincial Agrarian Reform Coordinating owners for agrarian reform
Committee (PARCCOM), may declare certain e. Lands foreclosed by government financial
provinces as priority land reform areas, in which case institutions
the acquisition and distribution of private agricultural f. Lands acquired by the Presidential
lands therein under advanced phases may be Commission on Good Government (PCGG)
implemented ahead of the above schedules on the g. All other lands owned by the government
condition that prior phases in these provinces have devoted to or suitable for agriculture
2. Lands with an area of 24 hectares up to 50 (b)Contracts covering areas not in excess of 1,000
hectares, to be completed by June 30, 2013 hectares in the case of such corporations and
specifically: associations, and 500 hectares, in the case of such
i. All alienable and disposable public individuals, shall be allowed to continue under their
agricultural lands original terms and conditions but not beyond August
ii. All arable public agricultural lands under 29, 1992, or their valid termination, whichever comes
agro-forest, pasture, and agricultural leases sooner, after which, such agreements shall continue
already cultivated and planted to crops in only when confirmed by the appropriate government
accordance with Sec. 6 Art. XIII of the agency. Such contracts shall likewise continue even
Constitution after the land has been transferred to beneficiaries or
iii. All public agricultural lands which are to be awardees thereof, which transfer shall be
opened for new development and immediately commenced and implemented, and
resettlement completed within the period of three (3) years
iv. All private agricultural lands which have mentioned in the first paragraph hereof.
already been subjected to a Notice of
Coverage issued on or before Dec. 10, 2008 (c)In no case will such leases and other agreements
v. All remaining private agricultural lands now being implemented extend beyond August 29,
regardless as to whether they have been 1992, when all lands subject hereof shall have been
subjected to notices of coverage distributed completely to qualified beneficiaries or
3. Lands with an area of more than 10-24 hectares, to awardees.
be completed by June 30, 2013
4. Lands from the retention limit up to 10 hectares to Such agreements can continue thereafter only under
be completed by June 30, 2014 a new contract between the government or qualified
beneficiaries or awardees, on the one hand, and said
Who can be considered as qualified beneficiaries: enterprises, on the other.
1. Only farmers (tenants and lessees) and
2. regular farm workers Lands leased, held or possessed by multinational
corporations, owned by private individuals and
Provided, private non-governmental corporations, associations,
1. actually tilling the lands, institutions and entities, citizens of the Philippines, shall
2. as certified under oath by the Brgy. Agrarian be subject to immediate compulsory acquisition and
Reform Council (BARC) and distribution upon the expiration of the applicable
3. attested under oath by the landowners lease, management, grower or service contract in
4. The intended beneficiary shall state under oath effect as of August 29, 1987, or otherwise, upon its
before the judge of the city or municipal court that valid termination, whichever comes sooner, but not
he/she is willing to work on the land to make it later than after ten (10) years following the effectivity
productive and to assume the obligation of paying of this Act. However during the said period of
the amortization for the compensation of the land effectivity, the government shall take steps to acquire
and the land taxes thereon. these lands for immediate distribution thereafter.
SECTION 8. Multinational Corporations. — All lands of In general, lands shall be distributed directly to the
the public domain leased, held or possessed by individual worker- beneficiaries. In case it is not
multinational corporations or associations, and other economically feasible and sound to divide the land,
lands owned by the government or by government- then they shall form a workers' cooperative or
owned or controlled corporations, associations, association which will deal with the corporation or
institutions, or entities, devoted to existing and business association or any other proper party for the
operational agri-business or agro-industrial purpose of entering into a lease or growers
enterprises, operated by multinational corporations agreement and for all other legitimate purposes. Until
and associations, shall be programmed for a new agreement is entered into by and between the
acquisition and distribution immediately upon the workers' cooperative or association and the
effectivity of this Act, with the implementation to be corporation or business association or any other
completed within three (3) years. proper party, any agreement existing at the time this
Act takes effect between the former and the
Lands covered by the paragraph immediately previous landowner shall be respected by both the
preceding, under lease, management, grower or workers' cooperative or association and the
service contracts, and the like, shall be disposed of as corporation, business, association or such other
follows: proper party. In no case shall the implementation or
(a)Lease, management, grower or service contracts application of this Act justify or result in the reduction
covering such lands covering an aggregate area in of status or diminution of any bene ts received or
excess of 1,000 hectares, leased or held by foreign enjoyed by the worker-beneficiaries, or in which they
individuals in excess of 500 hectares are deemed may have a vested right, at the time this Act
amended to conform with the limits set forth in becomes effective.
Section 3 of Article XII of the Constitution.
The provisions of Section 32 of this Act, with regard to immemorial by themselves or through their
production and income- sharing shall apply to farms predecessors-in-interest under claims of
operated by multinational corporations. individual or traditional group ownership
During the transition period, the new owners shall be continuously to the present
assisted in their efforts to learn modern technology in
production. Enterprises which show a willingness and Why Ancestral Lands are exempted from Agrarian
commitment and good-faith efforts to impart Reform Law?
voluntarily such advanced technology will be given In line with the principles of self-determination and
preferential treatment where feasible. autonomy, CARL recognizes and respects the systems of
In no case shall a foreign corporation, association, land ownership, land use, and modes of settling disputes
entity or individual enjoy any rights or privileges better of all indigenous cultural communities
than those enjoyed by a domestic corporation,
association, entity or individual. For Autonomous Regions:
LANDS POSSESSED BY MULTINATIONAL CORPORATIONS Their respective legislatures may enact their own laws on
ARE COVERED BY CARL ancestral domain subject to the provisions of the
Constitution, and principles enunciated in the CARL and
Ø Agricultural lands leased, held, or possessed by other national laws
multinational corporations are also subject to
compulsory acquisition and distribution. Section 10. Exemptions and Exclusions.
Ø The land shall be distributed directly to the individual
worker-beneficiaries. a) Lands actually, directly and exclusively used for
Ø If it is not economically feasible and sound to divide the parks, wildlife, forest reserves, reforestation, fish
land, the individual worker-beneficiaries shall form a sanctuaries and breeding grounds, watersheds and
worker’s cooperative or association which will deal with mangroves shall be exempt from the coverage of this
the corporation by way of lease or grower’s agreement Act.
and other legitimate purposes.
b) Private lands actually, directly and exclusively used
for prawn farms and fishponds shall be exempt from
the coverage of this Act: Provided, That said prawn
Section 9. Ancestral Lands. — For purposes of this Act,
farms and fishponds have not been distributed and
ancestral lands of each indigenous cultural
Certificate of Land Ownership Award (CLOA) issued
community shall include, but not be limited to, lands
to agrarian reform beneficiaries under the
in the actual, continuous and open possession and
Comprehensive Agrarian Reform Program.
occupation of the community and its members:
provided, that the Torrens Systems shall be respected.
In cases where the fishponds or prawn farms have
been subjected to the Comprehensive Agrarian
The right of these communities to their ancestral lands Reform Law by voluntary offer to sell, or commercial
shall be protected to ensure their economic, social farms deferment or notices of compulsory acquisition,
and cultural well-being.in line with the principles of a simple and absolute majority of the actual regular
self-determination and autonomy, the systems of workers or tenants must consent to the exemption
land ownership, land use, and the modes of settling within one (1) year from the effectivity of this Act
land disputes of all these communities must be When the workers or tenants do not agree to this
recognized and respected. exemption the fishponds or prawn farms shall be
distributed collectively to the worker-beneficiaries or
Any provision of law to the contrary notwithstanding, tenants who shall form a cooperative or association
the PARC may suspend the implementation of this to manage the same.
Act with respect to ancestral lands for the purpose of
identifying and delineating such lands: provided, that In cases where the fishponds or prawn farms have not
in the autonomous regions, the respective legislatures been subjected to the Comprehensive Agrarian
may enact their own laws on ancestral domain Reform Law the consent of the farm workers shall no
subject to the provisions of the Constitution and the longer be necessary’ however, the provision of
principles enunciated in this Act and other national Section 32-A hereof on incentives shall apply.
laws.
c) Lands actually, directly and exclusively used and
found to be necessary for national defense, school
ANCESTRAL LAND sites and campuses, including experimental farm
à Lands of public domain that have been in stations operated by public or private schools for
open, continuous, exclusive and notorious educational purposes, seeds and seedlings research
occupation and cultivation under a bona fide and pilot production center, church sites and
claim of acquisition of ownership or at least a convents appurtenant thereto, mosque sites and
period of 30 years before PD 410’s approval, by Islamic centers appurtenant thereto, communal
members of the National Cultural Communities burial grounds and cemeteries, penal colonies and
by themselves or through their ancestors penal farms actually worked by the inmates,
à Lands occupied, possessed and utilized by government and private research and quarantine
indigenous cultural communities since time centers and all lands with eighteen percent (18%)
slope and over, except those already developed, Lungsod Silangan Reservation. Even today, the areas in
shall be exempt from the coverage of this Act. question continued to be developed as a low-cost
housing subdivision, albeit at a snail's pace. This can
1. Lands actually, directly and exclusively used readily be gleaned from the fact that SAMBA members
and found to be necessary for parks, wildlife, even instituted an action to restrain petitioners from
forest reserves, reforestation, fish sanctuaries continuing with such development. The enormity of the
and breeding grounds, watersheds, and resources needed for developing a subdivision may
mangroves; have delayed its completion, but this does not detract
2. Private lands actually, directly and exclusively from the fact that these lands are still residential lands
used for prawn farms and fishponds –– so long and outside the ambit of the CARL. Indeed, lands not
as the same are not distributed and a CLOA on devoted to agricultural activity are outside the
the land has not been issued to a beneficiary coverage of CARL. These include lands previously
3. Lands actually, directly and exclusively used for converted to non-agricultural uses prior to the effectivity
national defense, school sites and campuses of CARL by government agencies other than
including experimental farm stations operated respondent DAR.
by public or private schools for educational
purposes, seeds and seedlings research and Since the NATALIA lands were converted prior to 15 June
pilot production centers, church sites and 1988, respondent DAR is bound by such conversion. It
convents appurtenant thereto, mosque sites was therefore error to include the undeveloped portions
and Islamic centers appurtenant thereto, of the Antipolo Hills Subdivision within the coverage of
communal burial grounds and cemeteries, CARL.”
penal colonies and penal farms actually
worked by the inmates, government and Lands with at least 18% Slope
private research and quarantine centers and ! Exemption is to prevent adverse effects on the
all lands with eighteen percent (18%) slope and lowlands and streams resulting from soil erosion
over, except those already developed regardless of the condition of the vegetative
cover, occupancy, or use of any kind –– not
NB: Land classification in tax declaration is not alienable and disposable
conclusive ! If previously classified as alienable and
Tax declarations are not the sole basis of land disposable, but not yet titled, it shall be
classification. Thus, even if it classifies a land as reverted to public forest.
agricultural, such classification is not irrefutable. As ! If covered by an approved public land
discussed in the case of Republic vs. Court of Appeals: application or occupied openly, continuously,
adversely and publicly for a period of not less
Facts: Green City Estate & Development Corp. is the than 30yrs as of the effectivity of FRC, it shall
owner of a parcel of land located in Jala-Jala, Rizal with remain as alienable and disposable BUT must
a land area of 112hec. Under the tax declaration, the be kept in a vegetation state sufficient to
land is agricultural. Hence, the DAR subjected the land prevent adverse effects on the lowlands and
to compulsory acquisition under ARL. streams
Thereafter, GCEDC filed an application for the
exemption from agrarian reform on the ground that the School sites and Campuses
land is not agricultural for being within the residential The school is in the best position to determine whether
and forest conservation zones of the town plan or zoning the land is necessary for use as school site or campuses.
ordinance. However, this was denied by DAR on the The DAR has no right to substitute its judgment or
basis of the tax declaration’s designation of the land. discretion for that of the school. In Central Mindanao
Issue: WON DAR was correct in denying the application University vs. Darab:
for exemption
Facts: CMU is an agricultural institution which owns 3k
Held: NO. DAR was correct in denying the application hectares of land. In 1984, it adopted a livelihood
for exemption by the mere fact that the tax declaration program under which its land resources were leased to
classified the land as agricultural. There is no law that its faculty and employees to enable each group to
holds that classifications embodied in tax declarations cultivate 4-5hec of land for lowland rice project. Later,
are conclusive and final nor would proscribe further these employees filed a complaint praying that they be
inquiry. Furthermore, tax declarations are clearly not the declared as tenants under CARL.
sole basis of a land’s classification. DAR found that the faculty and employees
were not tenants and therefore cannot be beneficiaries.
Lands classified as non-agricultural prior to the effectivity However, DAR segregated 400hec of CMU land and
of the CARL are not covered. subjected it to agrarian reform coverage on the ground
As enunciated in Natalia Realty vs. DAR: that it is not used directly, actually and exclusively for
school site.
“Based on the foregoing, it is clear that the undeveloped
portions of the Antipolo Hills Subdivision cannot in any Issue: WON the segregation was valid?
language be considered as "agricultural lands." These
lots were intended for residential use. They ceased to be Held: NO. The construction of Section 10 by DAR restricts
agricultural lands upon approval of their inclusion in the the land area of CMU to its present needs or to land area
presently, actively exploited and utilized by the university
Others directly
working on the
land
Management Contract
Build-Operate-Transfer Scheme
Chapter III
Improvement of Tenurial and Labor Relations
d) crops planted; and (f) Any party who disagrees with the decision may
e) their share in the harvest or amount of rental bring the matter to the court of proper jurisdiction for
paid or wages received. final determination of just compensation.
NB: 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 à This provision outlines the procedure to be followed in
barangay where it shall be open to inspection by the the compulsory acquisition of agricultural lands. Simply
public at all reasonable hours. stated, the procedure is as follows:
(e) Upon receipt by the landowner of the Section 17. Determination of Just Compensation. — In
corresponding payment or, in case of rejection or no determining just compensation, the cost of
response from the landowner, upon the deposit with acquisition of the land, the value of the standing
an accessible bank designated by the DAR of the crop, the current value of like properties, its nature,
compensation in cash or in LBP bonds in accordance actual use and income, the sworn valuation by the
with this Act, the DAR shall take immediate possession owner, the tax declarations, the assessment made by
of the land and shall request the proper Register of government assessors, and seventy percent (70%) of
Deeds to issue a Transfer Certificate of Title (TCT) in the the zonal valuation of the Bureau of Internal Revenue
name of the Republic of the Philippines. The DAR shall (BIR), translated into a basic formula by the DAR shall
thereafter proceed with the redistribution of the land be considered, subject to the final decision of the
to the qualified beneficiaries. proper court. The social and economic benefits
contributed by the farmers and the farmworkers and
by the Government to the property as well as the considerable length of time. That just compensation
nonpayment of taxes or loans secured from any should be determined in accordance with R.A. No. 6657
government financing institution on the said land shall and not P.D. No. 227 or E.O. No. 228, is important
be considered as additional factors to determine its considering that just compensation should be the full
valuation. and fair equivalent of the property taken from its owner
by the expropriator, the equivalent being real,
substantial, full and ample.”
JUST COMPENSATION
à “full and fair equivalent of the property taken Role of DAR Adjudication Board
from its owner by the expropriator” DARAB or its PARAD can conduct summary
à Measure: not taker’s gain but owner’s loss administrative proceedings for the preliminary
à Must be real, substantial, full and ample determination of just compensation in order to
à Also means “prompt payment” –– does not determine whether the land valuation computations of
only contemplate the immediate deposit and LB are in accord with the rules or administrative orders.
release of the provisional compensation but
also encompasses the full payment of the The preliminary proceedings of land valuation for the
finally adjudged JC. purpose of the determination of JC for its acquisition shall
à No prompt payment when there is only partial be conducted by:
payment PARAD –– initial land valuation is less than 10M
RARAD –– 10M-50M
Factors used in Valuation of Lands DARAB –– above 50M
1) Capitalized Net Income (CNI) –– based on land use
and productivity Section 18. Valuation and Mode of Compensation. —
2) Comparable Sales (CS) –– based 70% of BIR zonal The LBP shall compensate the landowner in such
value amounts as may be agreed upon by the landowner
3) Market Value (MV) –– on tax declaration and the DAR and the LBP, in accordance with the
criteria provided for in Sections 16 and 17, and other
Formulas: pertinent provisions hereof, or as may be finally
When All Factors are Present determined by the court, as the just compensation for
Land Value = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10) the land.
When CNI is not present The compensation shall be paid on one of the
LV = (CS x 0.90) + (MV x 0.10) following modes, at the option of the landowner: (1)
Cash payment, under the following terms and
When CS is not present conditions;
LV = (CNI x 0.90) + (MV x 0.10)
(a) For lands above fifty (50) hectares, — insofar as
When CS and CNI re not present the excess hectarage is concerned.
LV= MV x 2
(b) For lands above twenty-four (24) — hectares and
Reckoning of Valuation up to fifty (50) hectares.
1. At the time it was taken form owner and
appropriated by government
2. If government takes possession of land before Twenty-five percent (25%) cash, the balance to be
the institution of expropriation proceedings: at paid in government financial instruments negotiable
the time of taking of possession, not filing of at any time.
complaint.
Thirty percent (30%) cash, the balance to be paid in
“Time of Taking” government financial instruments negotiable at any
a) When title is transferred to RP or beneficiaries; time.
b) When PARC approved LO’s voluntary offer for
agrarian reform coverage thru stock (c) For lands twenty-four (24) — Thirty-five percent
distribution scheme (35%) cash, the hectares and below. balance to be
NB: However, if there is undue delay in payment, the paid in government financial instruments negotiable
value of the property should be determined not at the at any time.
time of the taking of the land but at the time of full
payment of just compensation. As held in Lubrica vs. (2) Shares of stock in government-owned or
Land Bank: controlled corporations, LBP preferred shares,
physical assets or other qualified investments in
“Petitioners were deprived of their properties way back accordance with guidelines set by the PARC;
in 1972, yet to date, they have not yet received just
compensation. Thus, it would certainly be inequitable to
(3) Tax credits which can be used against any tax
determine just compensation based on the guideline
liability; (4) LBP bonds, which shall have the following
provided by P.D. No. 227 and E.O. No. 228 considering
the failure to determine just compensation for a
(vii) Payment for fees of the immediate family of the Features of Land Bank Bonds:
original bondholder in government hospitals; and a) 10% of the face value of bonds mature every
year until 10th year
b) Transferable and negotiable
(viii) Such other uses as the PARC may from time to
c) Can be used for the ff:
time allow.
a. Acquisition of land or other real
properties of government
In case of extraordinary inflation, the PARC shall take b. Acquisition of land shares of stock of
appropriate measures to protect the economy. GOCCs or shares of stocks owned by
government in private corporations
c. Bail bonds
Modes of Payment (at the option of LO): d. Security for loans with government
1. Cash and financial instruments of government financial institution
payable as follows: e. Payment for taxes and fees to
a. Lands above 50hec government
i. 25% in cash
f. Payment for tuition fees of immediate In the event they cannot agree on the price of land, the
family procedure for compulsory acquisition as provided in
g. Payment in government hospitals Section 16 shall apply. The LBP shall extend financing to
the beneficiaries for purposes of acquiring the land.
Section 19. Incentives for Voluntary Offers for Sales. —
Landowners, other than banks and other financial Mode of payment in voluntary land transfers
institutions, who voluntarily offer their lands for sale Unlike in compulsory acquisition, the farmer-
shall be entitled to an additional five percent (5%) beneficiary pays the agreed price of the land directly to
cash payment. the landowner.
Chapter VII
Documentary Requirements for Voluntary Offers for Sale Land Redistribution
(attached to written offer):
a) Title of proof of ownership, if untitled;
Section 22. Qualified Beneficiaries. — The lands covered
b) Tax declaration; and
by the CARP shall be distributed as much as possible to
c) Approved survey plan
landless residents of the same barangay, or in the
absence thereof, landless residents of the same
Failure to comply = compulsory acquisition.
municipality in the following order of priority:
(b) The terms and conditions of such transfer shall not be (g) others directly working on the land.
less favorable to the transferee than those of the
government's standing offer to purchase from the Provided, however, that the children of landowners who
landowner and to resell to the beneficiaries, if such offers are qualified under Section 6 of this Act shall be given
preference in the distribution of the land of their parents:
have been made and are fully known to both parties. and provided, further, that actual tenant-tillers in the
landholdings shall not be ejected or removed therefrom.
(c) The voluntary agreement shall include sanctions for
non-compliance by either party and shall be duly Beneficiaries under Presidential Decree No. 27 who have
recorded and its implementation monitored by the DAR. culpably sold, disposed of, or abandoned their land are
disqualified to become beneficiaries under this Program.
in the distribution of privately-owned lands will be given (2) Those who have WAIVED their right to become
preferential rights in the distribution of lands from the an agrarian reform beneficiary in exchange for
public domain. compensation, provided that the waiver has
not been questioned in the proper government
Who are eligible to become agrarian reform entity;
beneficiaries? (3) Those who have NOT PAID an aggregate of 3
To be eligible to become an agrarian reform annual amortizations;
beneficiary, a person must be a landless resident of the (4) Those who have FAILED to exercise right of
same barangay; or of the same municipality. redemption/repurchase within 3 years resulting
in the foreclosure of mortgage by the Land
Bank of the Philippines of a previously awarded
D A landless resident is a farmer or tiller who owns less land;
than 3 hectares of land. It could refer to any of the (5) Those who REFUSED to pay 3 annual
following: amortizations for land acquired through
voluntary land transfer or direct payment
(a) agricultural lessees and share tenants; scheme, resulting in the repossession by the
(b) regular farmworkers; landowner;
(c) seasonal farmworkers;
(6) Those who have been DISMISSED for cause;
(d) other farmworkers; (7) Those who have OBTAINED substantially
(e) actual tillers or occupants of public lands;
equivalent employment, i.e. any employment
(f) collectives or cooperatives of the above or profession from which the applicant-farmer
beneficiaries; and derives income equivalent to the income of a
(g) others directly working on the land regular farm worker at the time identification,
screening, and selection of the beneficiary;
Qualifications of an agrarian reform beneficiary (8) Those who have RETIRED or voluntarily resigned
To qualify as an agrarian reform beneficiary, the farmer from their employment;
(whether tenant, lessee, or worker) must be: (9) Those who have MISUSED the land or DIVERTED
the financial support services extended by the
(a) Filipino Citizen government;
(b) Resident of the barangay or municipality where (10) Those who have MISREPRESENTED material facts
the landholding is located in their basic qualifications;
(c) At least 15 years old at the time of (11) Those who have SOLD, DISPOSED or
identification, screening and selection; and ABANDONED the lands awarded to them by the
(d) Willing, able and equipped with aptitude to government;
cultivate and make the land productive (12) Those who have CONVERTED agricultural lands
to non-agricultural use without prior approval
Special qualification for farm workers in commercial
of the DAR;
farms or plantations
(13) Those who have been finally ADJUDGED GUILTY
§ In addition to the aforementioned
of forcible entry or unlawful detainer over the
qualifications, farm workers in commercial
property; and
farms of plantations can qualify as an agrarian
(14) Those who have VIOLATED agrarian reform
reform beneficiary if they were already
laws and regulations
employed as of June 15, 1988 in the
landholding covered by the comprehensive
agrarian reform law. Section 22-A. Order of Priority. – A landholding of a
landowner shall be distributed first to qualified
beneficiaries under Section 22, subparagraphs (a) and
Managerial farm workers not qualified to become
beneficiaries (b) of that same landholding up to a maximum of a
§ Farm workers holding managerial (or three hectares each, shall the remaining portion of the
supervisory) positions as of June 15, 1988 are landholding, if any, be distributed to other beneficiaries
not qualified to become agrarian reform under Section 22, subparagraphs (c), (d), (e), (f) and (g).
beneficiaries.
Ê However, farm workers promoted to Orders of distribution
managerial or supervisory position à As per Section 22 of the CARL, children of the
after they were identified, screened landowner enjoy first preference in the distribution of the
and selected will remain as qualified landholding.
agrarian reform beneficiaries.
D Each child is entitled to three hectares if he is:
Who are disqualified to become agrarian reform (a) 15 years old; and
beneficiaries? (b) actually tilling the land or directly managing
The following tenants, lessees, or farm workers are the farm
disqualified from becoming an agrarian reform
beneficiary under the agrarian reform law (as per DAR D After the children, the covered landholding will be
Administrative Order No. 2, s. 2009): distributed to the following:
(1) Those who DO NOT MEET the basic (a) agricultural lessees and share tenants;
qualifications; (b) regular farmworkers
All cases involving the cancellation of usufructuary rights over the awarded land
registered emancipation patents, certificates of land which the DAR has taken possession.
ownership award, and other titles issued under any
agrarian reform program are within the exclusive and
original jurisdiction of the Secretary of the DAR. Obligations of Agrarian Reform Beneficiaries
Agrarian Reform beneficiaries are obliged to:
Transfer of ownership to the beneficiaries not automatic
(a) Exercise due diligence in the use, cultivation
r Compulsory acquisition does not mean and maintenance of the land, including
automatic transfer of ownership of the land to improvements thereon; and
the tenant, lessee or farm worker. (b) Pay the Land Bank 30 annual amortizations with
4 Title and ownership over the land can 6% interest per annum
be transferred to the beneficiaries
only upon full payment of the just ¦ The amortization will start ONE YEAR from the date of
compensation to the landowner. registration of the CLOA.
When does the DAR issue a Certificate of Land Ê However, if actual occupancy of the land
Ownership Award (CLOA)? takes place after registration of the CLOA, the
1-year period shall be reckoned from
à The DAR will issue the CLOA only upon FULL constructive occupation of the land by the
PAYMENT of amortization by the farmer- beneficiary.
beneficiary. The CLOA in turn becomes the
basis for the issuance in his name of an original Section 25. Award Ceilings for Beneficiaries. —
or transfer certificate of title. Beneficiaries shall be awarded an area not exceeding
three (3) hectares, which may cover a contiguous tract
CLOA is INDEFEASIBLE
of land or several parcels of land cumulated up to the
CLOAs are titles brought under the operation of the
prescribed award limits. The determination of the size of
Torrens system.
the land for distribution shall consider crop type, soil type,
Ê Hence, they are conferred with the same weather patterns and other pertinent variables or
indefeasibility and security as provided for by factors which are deemed critical for the success of the
PD No. 1529, as amended by RA No. 6732. beneficiaries. "For purposes of this Act, a landless
Ê CLOAs and other titles issued under the beneficiary is one who owns less than three (3) hectares
agrarian reform program, become of agricultural land. "Whenever appropriate, the DAR
indefeasible and imprescriptible after one year shall encourage the agrarian reform beneficiaries to
from its registration with the Office of the form or join farmers' cooperatives for purposes of
Registry of Deeds, subject to the conditions, affiliating with existing cooperative banks in their
limitations and qualification under CARL, the respective provinces or localities, as well as forming
Property Registration Decree and other blocs of agrarian reform beneficiaries, corporations, and
pertinent laws. partnerships and joining other farmers' collective
organizations, including irrigators' associations: Provided,
Cancellation of CLOAs That the agrarian reform beneficiaries shall be assured of
All cases involving the cancellation of CLOAs, and corresponding shares in the corporation, seats in the
other titles issued under any agrarian reform program board of directors, and an equitable share in the profit.
are within the exclusive and original jurisdiction of the
Secretary of the DAR.
In general, the land awarded to a farmer-
beneficiary should be in the form of an individual title,
Grounds for Cancellation of CLOAs
covering one (1) contiguous tract or several parcels of
(a) Abandonment of land land cumulated up to a maximum of three (3) hectares.
(b) Neglect of misuse of land
(c) Failure to pay 3 annual amortizations The beneficiaries may opt for collective
(d) Misuse or diversion of financial and support ownership, such as coorkers or farmers cooperative or
services some other form of collective organization and for the
(e) Sale, transfer or conveyance of the right to use issuance of collective ownership titles: Provided, That the
the land; and total area that may be awarded shall not exceed the
(f) Illegal conversion of the land total number of co-owners or members of the
cooperative or collective organization multiplied by the
award limit above prescribed, except in meritorious
When will the rights and obligation of beneficiaries cases as determined by the PARC.
commence?
The conditions for the issuance of collective
¦ The rights and responsibilities of the beneficiaries will
titles are as follows:
begin from their receipt of a duly registered CLOA and
their actual physical possession of the awarded land.
(a) The current farm management system of the land
6 Pending issuance of CLOA, the identified and covered by CARP will not be appropriate for individual
qualified agrarian reform beneficiaries have farming of farm parcels;
(b) The farm labor system is specialized, where the must be listed in the same certificate of land
farmworkers are organized by functions and not by ownership award.
specific parcels such as spraying, weeding, packing and
Conditions for issuance of collective titles
other similar functions;
(a) The farm management system of the land
(c) The potential beneficiaries are currently not farming covered is not appropriate for individual
individual parcels but collectively work on large farming;
contiguous areas; and (b) The farm labor system is specialized, i.e. where
the farmworkers are organized by functions
(d) The farm consists of multiple crops being farmed in and not by specific parcels such as spraying,
an integrated manner or includes non-crop production weeding, packing and other similar functions;
areas that are necessary for the viability of farm (c) The beneficiaries are currently not farming
operations, such as packing plants, storage areas, dikes, individual parcels but collectively work on
and other similar facilities that cannot be subdivided or large contiguous areas; and
assigned to individual farmers. (d) The farm consists of multiple crops being
farmed in an integrated manner or includes
non-crop production areas that are necessary
For idle and abandoned lands or for the viability of farm operations, such as
underdeveloped agricultural lands to be covered by
packing plants, storage areas, dikes, and other
CARP, collective ownership shall be allowed only if the
similar facilities that cannot be subdivided or
beneficiaries opt for it and there is a clear development
assigned to individual farmers.
plan that would require collective farming or integrated
farm operations exhibiting the conditions described
above. Otherwise, the land awarded to a Title must indicate that is an EP or COLA
farmerbeneficiary should be in the form of an individual The title of the land awarded under the agrarian
title, covering one (1) contiguous tract or several parcels reform must indicate that it is an Emancipation Patent
of land cumulated up to a maximum of three (3) (EP) or a Certificate of Land Ownership Award (CLOA).
hectares.
o The subsequent transfer title must also indicate
In case of collective ownership, title to the that it is an emancipation patent or a
property shall be issued in the name of the co-owners or certificate of land ownership award.
the cooperative or collective organization as the case
may be. If the certificates of land ownership award are Section 26. Payment by Beneficiaries. — Lands awarded
given to cooperatives then the names of the pursuant to this Act shall be paid for by the beneficiaries
beneficiaries must also be listed in the same certificate to the LBP in thirty (30) annual amortizations at six
of land ownership award. percent (6%) interest per annum. The annual
amortization shall start one (1) year from the date of the
With regard to existing collective certificates of certificate of land ownership award registration.
land ownership award, the DAR should immediately However, if the occupancy took place after the
undertake the parcelization of said certificates of land certificate of land ownership award registration, the
ownership award, particularly those that do not exhibit amortization shall start one (1) year from actual
the conditions for collective ownership outlined above. occupancy. The payments for the first three (3) years
The DAR shall conduct a review and redocumentation after the award shall be at reduced amounts as
of all the collective certificates of land ownership award. established by the PARC: Provided, That the first five (5)
The DAR shall prepare a prioritized list of certificates of annual payments may not be more than five percent
land ownership award to be parcelized. The (5%) of the value of the annual gross production as
parcelization shall commence immediately upon established by the DAR. Should the scheduled annual
approval of this Act and shall not exceed a period of payments after the fifth (5th) year exceed ten percent
three (3) years. Only those existing certificates of land (10%) of the annual gross production and the failure to
ownership award that are collectively farmed or are produce accordingly is not due to the beneficiary's fault,
operated in an integrated manner shall remain as the LBP shall reduce the interest rate and/or reduce the
collective. principal obligation to make the repayment affordable.
Individual titles for every beneficiary The LBP shall have a lien by way of mortgage
General Rule: The land should be awarded to the on the land awarded to the beneficiary; and this
individual farmer-beneficiary and should be covered by mortgage may be foreclosed by the LBP for
an individual title. nonpayment of an aggregate of three (3) annual
amortizations. The LBP shall advise the DAR of such
Exception: If the beneficiaries opt for collective proceedings and the latter shall subsequently award the
ownership, such as farmers’ cooperative, collective forfeited landholding to other qualified beneficiaries. A
ownership title may be issued in the name of the co- beneficiary whose land, as provided herein, has been
owners or the collective organization. foreclosed shall thereafter be permanently disqualified
from becoming a beneficiary under this Act.
N If the title is issued in the name of the collective
organization, the names if the beneficiaries Schedule of Payment
¾ The cost of the awarded land is payable to the Land agrarian reform must indicate that it is an emancipation
Bank (by the beneficiaries) in 30 annual amortizations patent or a certificate of land ownership award and the
with 6% interest per annum. subsequent transfer title must also indicate that it is an
emancipation patent or a certificate of land ownership
award.
•The Land Bank can FORFEIT the Estate of the Late Encarnacion Vda. De Panlilio v. Dizon:
If the landholding and award it to The prohibition against transfer to persons other than the
beneficiary other qualified beneficiaries heirs of the agrarian reform beneficiary stems from the
fails to pay 3 •The beneficiary whose land has policy of the Government to develop generations of
annual been foreclosed or forfeited will farmers to attain its avowed goal to have an adequate
amortizations be permanently disqualified and sustained agricultural production with certitude.
from becoming a beneficiary.
Such objective will not see the light of the day if lands
covered by agrarian reform can easily be converted to
non-agricultural purposes.
Modes of Distribution of
conditions, the Land Bank will compensate the
COrporate Farms
beneficiary (i.e. the seller or transferor).
Direct
Indirect
Section 30. Homelots and Farmlots for Members of features as all other shares.
Cooperatives. — The individual members of the (d) Any transfer of shares of stocks by the original
cooperatives or corporations mentioned in the beneficiaries shall be void ab initio unless said
preceding section shall be provided with homelots and transaction is in favor of a qualified and registered
small farmlots for their family use, to be taken from the beneficiary within the same corporation.
land owned by the cooperative or corporation.
If within two (2) years from the approval of this
D Under the exception stated in the previous section, Act, the land or stock transfer envisioned above is not
the beneficiaries are entitled to a home lot and a small made or realized or the plan for such stock distribution
farm lot not exceeding 1,000 square meters which approved by the PARC within the same period, the
beneficiary can use as the site of his permanent dwelling agricultural land of the corporate owners or corporation
and for raising vegetables, poultry, pigs and other shall be subject to the compulsory coverage of this Act.
animals and engaging in minor industries.
o The home lot and small farm lot will be taken The Schemes under Section 31 are no longer operative
from the land awarded to the cooperative or Under Section 31, there are two schemes available to
association. corporate landowners, namely:
o If the existing home lot is situated within the
retained area of the landowner, the (a) Voluntary land transfer; and
beneficiary may be made to transfer his (b) Stock distribution
dwelling in his farm lot or other area
designated for his home lot, provided, that the
Ö Both schemes are no longer operative. Section 7 of
landowner shoulders the cost of the transfer.
CARL, as amended by RA 9700, allowed voluntary land
transfers and stock distribution only up to June 30, 2009.
Section 31. Corporate Landowners. — Corporate
landowners may voluntarily transfer ownership over their Ê After June 30, 2009, the modes of acquisition
agricultural landholdings to the Republic of the are limited to voluntary offer to sell and
Philippines pursuant to Section 20 hereof or to qualified compulsory acquisition.
beneficiaries, under such terms and conditions,
& Read Hacienda Luisita v. PARC case (available in
consistent with this Act, as they may agree upon, subject
Binondo Case Digest and p. 83 to 88 of Ungos)
to confirmation by the DAR.
Section 32. Production-Sharing. — Pending final land
Upon certification by the DAR, corporations transfer, individuals or entities owning, or operating
owning agricultural lands may give their qualified under lease or management contract, agricultural lands
beneficiaries the right to purchase such proportion of the are hereby mandated to execute a production-sharing
capital stock of the corporation that the agricultural plan with their farm workers or farmworkers'
land, actually devoted to agricultural activities, bears in reorganization, if any, whereby three percent (3%) of the
relation to the company's total assets, under such terms gross sales from the production of such lands are
and conditions as may be agreed upon by them. In no distributed within sixty (60) days of the end of the fiscal
case shall the compensation received by the workers at year as compensation to regular and other farmworkers
the time the shares of stocks are distributed be reduced. in such lands over and above the compensation they
The same principle shall be applied to associations, with currently receive: provided, that these individuals or
respect to their equity or participation. entities realize gross sales in excess of five million pesos
per annum unless the DAR, upon proper application,
Corporations or associations which voluntarily determines a lower ceiling.
divest a proportion of their capital stock, equity or
participation in favor of their workers or other qualified In the event that the individual or entity realizes
beneficiaries under this section shall be deemed to have a profit, an additional ten percent (10%) of the net profit
complied with the provisions of the Act: provided, that after tax shall be distributed to said regular and other
the following conditions are complied with: farmworkers within ninety (90) days of the end of the
fiscal year.
(a) In order to safeguard the right of beneficiaries who
own shares of stocks to dividends and other To forestall any disruption in the normal
financial benefits, the books of the corporation or operation of lands to be turned over to the farmworker-
association shall be subject to periodic audit by beneficiaries mentioned above, a transitory period, the
certified public accountants chosen by the length of which shall be determined by the DAR, shall be
beneficiaries; established.
(b) Irrespective of the value of their equity in the
corporation or association, the beneficiaries shall During this transitory period, at least one
be assured of at least one (1) representative in the percent (1%) of the gross sales of the entity shall be
board of directors, or in a management or distributed to the managerial, supervisory and technical
executive committee, if one exists, of the group in place at the time of the effectivity of this Act,
corporation or association; and as compensation for such transitory managerial and
(c) Any shares acquired by such workers and technical functions as it will perform, pursuant to an
beneficiaries shall have the same rights and agreement that the farmworker- beneficiaries and the
managerial, supervisory and technical group may prawn farms provided the size of the land converted
conclude, subject to the approval of the DAR. does not exceed the retention limit of the landowner.
Section 32: A Transitory Provision This provision applies only to individuals or entities
The provision applies only while the land transfer is owning or operating fishponds and prawn farms.
being processed and finalized. The incentive is 7.5% of the net profit before
tax over.
The scheme requires individuals or entities owing, or
operating an agricultural land under lease or Section 33. Payment of Shares of Cooperative or
management contract to adopt a production sharing Association. — Shares of a cooperative or association
with farm workers in the following manner: acquired by farmers-beneficiaries or workers-
beneficiaries shall be fully paid for in an amount
corresponding to the valuation as determined in the
immediately succeeding section. The landowner and
to be distributed to the LBP shall assist the farmers-beneficiaries and workers-
regular and other
3% of the gross sales
farm workers (over beneficiaries in the payment for said shares by providing
and above the
compensation they credit financing.
currently receive)
If more than 5 Million
gross sales/year are
realized The value of shares of a cooperative or association will
to be distributed to
the managerial,
be determined by the Land Bank.
1% of the gross sales
superviosry and
technical employees
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
Additional 10% of cooperatives and the objective of fostering responsible
the net profit after participation of the workers-beneficiaries in the creation
If additional profits
tax, to be distributed of wealth.
are realized
to regular and other
farmworkers.
In the determination of price that is just not only
to the individuals but to society as well, the PARC shall
consult closely with the landowner and the workers-
Section 32 – Declared unconstitutional with respect to
beneficiaries.
livestock and poultry
Luz Farms v. Secretary of Agrarian Reform: Section 32 of In case of disagreement, the price as
the CARL which directs corporate farmers to execute determined by the PARC, if accepted by the workers-
and implement production-sharing plans (pending final beneficiaries, shall be followed, without prejudice to the
redistribution of their landholdings), is unreasonable, landowner's right to petition the Special Agrarian Court
confiscatory, and violative of due process, hence, null to resolve the issue of valuation.
and void for being unconstitutional, insofar as it includes
the livestock, poultry and swine farms in its coverage. à Executive Order No. 405 promulgates on June 14,
1990, has transferred the authority of the Presidential
Agrarian Reform Council to determine the valuation or
Section 32-A. Incentives. – Individuals or entities owning just compensation to the Land Bank.
or operating fishponds and prawn farms are hereby
mandated to execute within six (6) months from the SECTION 1. The Land Bank of the Philippines
effectivity of this Act an incentive plan with their regular shall be primarily responsible for the
fishpond or prawn farmworkers or fishpond or prawn determination of the land valuation and
farm workers’ organization, if any, whereby seven point compensation for all private lands suitable for
five percent (7.5%) of their net profit before tax from the agriculture under either the Voluntary Offer to
operation of the fishpond or prawn farms are distributed Sell (VOS) or Compulsory Acquisition (CA)
within sixty (60) days at the end of the fiscal year as arrangement as governed by Republic Act No.
compensation to regular and other pond workers in such 6657. The Department of Agrarian Reform shall
ponds over and above the compensation they currently make use of the determination of the land
receive. valuation and compensation by the Land Bank
of the Philippines, in the performance of its
In order to safeguard the right of the regular functions.
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.
(2) Infrastructure development and public works projects DAR Administrative Order No. 5, series of 1995
in areas and settlements that come under agrarian à The success of agrarian reform depends on the
reform, and for this purpose, the preparation of the provision of the necessary support services and an
physical development plan of such settlements organizational vehicle that will propel the beneficiaries
providing suitable barangay sites, potable water and to attain economic independence and self-reliance.
power resources, irrigation systems, seeds and seedling The lives of agrarian reform beneficiaries will be uplifted
banks, post harvest facilities, and other facilities for a through the provision of support services.
sound agricultural development plan. For the purpose of
providing the aforecited infrastructure and facilities, the Section 36. Funding for Support Services. — In order to
DAR is authorized to enter into contracts with interested cover the expenses and cost of support services, at least
private parties on long term basis or through joint- forty percent (40%) of all appropriations for agrarian
venture agreements or build-operate-transfer scheme; reform during the five (5)-year extension period shall be
immediately set aside and made available for this
purpose: Provided, That the DAR shall pursue integrated
(3) Government subsidies for the use of irrigation
land acquisition and distribution and support services
facilities;
strategy requiring a plan to be developed parallel to the
land acquisition and distribution process. The planning
(4) Price support and guarantee for all agricultural and implementation for land acquisition and distribution
produce; shall be hand-in-hand with support services delivery:
Provided, further, That for the next five (5) years, as far as
(5) Extending to small landowners, farmers and farmers' practicable, a minimum of two (2) Agrarian Reform
organizations the necessary credit, like concessional Communities (ARCs) shall be established by the DAR, in
and collateral-free loans, for agro-industrialization based coordination with the local government units, non-
on social collaterals like the guarantees of farmers' governmental organizations, community-based
organizations; cooperatives and people's organizations in each
legislative district with a predominant agricultural
(6) Promoting, developing and extending financial population: Provided, furthermore, That the areas in
assistance to small and medium-scale industries in which the ARCs are to be established shall have been
agrarian reform areas; substantially covered under the provisions of this Act and
other agrarian or land reform laws: Provided, finally, That
(7) Assigning sufficient numbers of agricultural extension a complementary support services delivery strategy for
workers to farmers' organizations; existing agrarian reform beneficiaries that are not in
barangays within the ARCs shall be adopted by the DAR.
(8) Undertake research, development and
dissemination of information on agrarian reform, plants For this purpose, an Agrarian Reform
and crops best suited for cultivation and marketing, and Community is composed and managed by agrarian
low-cost and ecologically sound farm inputs and reform beneficiaries who shall be willing to be organized
technologies to minimize reliance on expensive and and to undertake the integrated development of an
imported agricultural inputs; area and/or their organizations/cooperatives. In each
community, the DAR, together with the agencies and
organizations abovementioned, shall identify the
(9) Development of cooperative management skills
farmers' association, cooperative or their respective
through intensive training;
federations approved by the farmers-beneficiaries that
shall take the lead in the agricultural development of the
area. In addition, the DAR, in close coordination with the
(10) Assistance in the identification of ready markets for congressional oversight committee created herein, with
agricultural produce and training in the other various due notice to the concerned representative of the
aspects of marketing; legislative district prior to implementation shall be
authorized to package proposals and receive grants, planting materials; (2) organic fertilizers; (3) pesticides;
aids and other forms of financial assistance from any (4) herbicides; and (5) farm animals,
source. implements/machineries; and five percent (5%) for
seminars, trainings and the like to help empower
à This provision mandates the DAR to establish Agrarian agrarian reform beneficiaries.
Reform Communities in each legislative district with a
predominant agricultural population. (c) Extension services by way of planting, cropping,
production and post- harvest technology transfer, as
AGRARIAN REFORM COMMUNITY well as marketing and management assistance and
support to cooperatives and farmers' organizations;
à will be composed of and managed by
agrarian reform beneficiaries who shall be (d) Infrastructure such as, but not limited to, access trails,
willing to be organized and to undertake the minidams, public utilities, marketing and storage
integrated development of an area, their facilities;
organizations or cooperatives
(e) Research, production and use of organic fertilizers
Section 37. Support Services for the Agrarian Reform and other local substances necessary in farming and
Beneficiaries. — The State shall adopt the integrated cultivation; and
policy of support services delivery to agrarian reform
beneficiaries. To this end, the DAR, the Department of (f) Direct and active DAR assistance in the education
Finance, and the Bangko Sentral ng Pilipinas (BSP) shall and organization of actual and potential agrarian
institute reforms to liberalize access to credit by agrarian reform beneficiaries, at the barangay, municipal, city,
reform beneficiaries. The PARC shall ensure that support provincial, and national levels, towards helping them
services for agrarian reform beneficiaries are provided, understand their rights and responsibilities as owner-
such as: cultivators developing farm-related trust relationships
among themselves and their neighbors, and increasing
(a) Land surveys and titling; farm production and profitability with the ultimate end
of empowering them to chart their own destiny. The
(b) Socialized terms on agricultural credit facilities; representatives of the agrarian reform beneficiaries to
the PARC shall be chosen from the nominees of the duly
accredited agrarian reform beneficiaries' organizations,
Thirty percent (30%) of all appropriations for
or in its absence, from organizations of actual and
support services referred to in Section 36 of Republic Act
potential agrarian reform beneficiaries as forwarded to
No. 6657, as amended, shall be immediately set aside
and processed by the PARC EXCOM.
and made available for agricultural credit facilities:
Provided, That one-third (1/3) of this segregated
appropriation shall be specifically allocated for subsidies The PARC shall formulate policies to ensure that
to support the initial capitalization for agricultural support services for agrarian reform beneficiaries shall be
production to new agrarian reform beneficiaries upon provided at all stages of the program implementation
the awarding of the emancipation patent or the with the concurrence of the concerned agrarian reform
certificate of land ownership award and the remaining beneficiaries.
two-thirds (2/3) shall be allocated to provide access to
socialized credit to existing agrarian reform The PARC shall likewise adopt, implement, and
beneficiaries, including the leaseholders: Provided, monitor policies and programs to ensure the
further, the LBP and other concerned government fundamental equality of women and men in the
financial institutions, accredited savings and credit agrarian reform program as well as respect for the
cooperatives, financial service cooperatives and human rights, social protection, and decent working
accredited cooperative banks shall provide the delivery conditions of both paid and unpaid men and women
system for disbursement of the above financial farmer-beneficiaries.
assistance to individual agrarian reform beneficiaries,
holders of collective titles and cooperatives. The Bagong Kilusang Kabuhayan sa Kaunlaran
(BKKK) Secretariat shall be transferred and attached to
For this purpose, all financing institutions may the LBP, for its supervision including all its applicable and
accept as collateral for loans the purchase orders, existing funds, personnel, properties, equipment and
marketing agreements or expected harvests: Provided, records.
That loans obtained shall be used in the improvement or
development of the farmholding of the agrarian reform Misuse or diversion of the financial and support
beneficiary or the establishment of facilities which shall services herein provided shall result in sanctions against
enhance production or marketing of agricultural the beneficiary guilty thereof, including the forfeiture of
products or increase farm income therefrom: Provided, the land transferred to him/her or lesser sanctions as may
further, That of the remaining seventy percent (70%) for be provided by the PARC, without prejudice to criminal
the support services, fifteen percent (15%) shall be prosecution.
earmarked for farm inputs as requested by the duly
accredited agrarian reform beneficiaries' organizations,
à This provision mandates the Government to extend
such as, but not limited to: (1) seeds, seedlings and/or
support services to agrarian reform beneficiaries, most or exchange of bonds issued for payment of the lands
notable of which are: acquired with stocks and bonds issued by the National
(a) Land surveys and titling; Government, the BSP and other government institutions
(b) Liberalized access to credit; and instrumentalities;
(c) Socialized terms on agricultural credit facilities;
(d) Technology transfer; (c) Marketing of agrarian reform bonds, as well as
(e) Infrastructure, such as storage facilities, mini promoting the marketability of said bonds in traditional
dams, etc. and non-traditional financial markets and stock
exchanges; and/or
SEC. 37-A. Equal Support Services for Rural Women. —
Support services shall be extended equally to women (d) Other services designed to utilize productively the
and men agrarian reform beneficiaries. proceeds of the sale of such lands for rural
industrialization.
The PARC shall ensure that these support
services, as provided for in this Act, integrate the specific A landowner who invests in rural-based
needs and well-being of women farmer-beneficiaries industries shall be entitled to the incentives granted to a
taking into account the specific requirements of female registered enterprise engaged in a pioneer or preferred
family members of farmer-beneficiaries. area of investment as provided for in the Omnibus
Investment Code of 1987, or to such other incentives as
The PARC shall also ensure that rural women will the PARC, the LBP, or other government financial
be able to participate in all community activities. To this institutions shall provide.
effect, rural women are entitled to self-organization in
order to obtain equal access to economic opportunities The LBP shall redeem a landowner's agrarian
and to have access to agricultural credit and loans, reform bonds at face value as an incentive: Provided,
marketing facilities and technology, and other support that at least fifty percent (50%) of the proceeds thereof
services, and equal treatment in land reform and shall be invested in a Board of Investments (BOI)-
resettlement schemes. registered company or in any agri-business or agro-
industrial enterprise in the region where the CARP-
The DAR shall establish and maintain a covered landholding is located. An additional incentive
women's desk, which will be primarily responsible for of two percent (2%) in cash shall be paid to a landowner
formulating and implementing programs and activities who maintains his/her enterprise as a going concern for
related to the protection and promotion of women's five (5) years or keeps his/her investments in a BOI-
rights, as well as providing an avenue where women can registered firm for the same period: Provided, further,
register their complaints and grievances principally That the rights of the agrarian reform beneficiaries are
related to their rural activities. not, in any way, prejudiced or impaired thereby.
RURAL WOMEN The DAR, the LBP and the Department of Trade
à They are those engaged directly or indirectly in and Industry shall jointly formulate the program to carry
farming or fishing as their source of livelihood, whether out these provisions under the supervision of the PARC:
paid or unpaid, regular or seasonal, or in food Provided, that in no case shall the landowners' sex,
preparation, managing the household, caring for the economic, religious, social, cultural and political
children, and other similar activities. attributes exclude them from accessing these support
services.
Under Section 40 (5) of the CARL, all qualified women
members of the agricultural labor force are guaranteed à This provision outlines the support services that are
and assured of the following: available to landowners, the most notable of which is
(a) Equal right to ownership of the land; the incentive granted to a landowner who invests in
(b) Equal shares of the farm’s produce; and rural-based industries.
(c) Representation in advisory or appropriate A landowner who invests in rural-based industry is
decision-making body entitled to the incentives granted to a registered
enterprise engaged in a pioneer or preferred area of
SEC. 38. Support Services for Landowners. — The PARC,
investment under the Omnibus Investment Code of
with the assistance of such other government agencies
1987.
and instrumentalities as it may direct, shall provide
landowners affected by the CARP and prior agrarian ë The Land Bank will redeem the landowner’s
reform programs with the following services: agrarian reform bonds at its face value if at
least 50% of the proceeds thereof are invested
(a) Investment information, financial and counseling in a Board of Investments-registered company
assistance, particularly investment information on or in any agri-business or agri-industrial
government-owned and/or -controlled corporations enterprise in the region where the CARP-
and disposable assets of the government in pursuit of covered landholding is located.
national industrialization and economic independence: ë If the landowner maintains his enterprise as a
going concern or keeps his investments in a
(b) Facilities, programs and schemes for the conversion BOI-registered firm for 5 years, he is entitled to
This provision is intended to: (5) Rural Women. — All qualified women members of the
agricultural labor force must be guaranteed and
(a) Promote equal distribution of landholdings; assured equal right to ownership of the land, equal
(b) Provide the needed infrastructures in shares of the farm's produce, and representation in
agriculture; advisory or appropriate decision-making bodies.
(c) Conserve soil fertility and prevent erosion
(6) Veterans and Retirees. — In accordance with Section
Chapter X 7 of Article XVI of the Constitution, landless war veterans
Special Areas of Concern and veterans of military campaigns, their surviving
spouse and orphans, retirees of the Armed Forces of the
Section 40. Special Areas of Concern. — As an integral Philippines (AFP) and the Integrated National Police
part of the Comprehensive Agrarian Reform Program, (INP), returnees, surrenderees, and similar beneficiaries
the following principles in these special areas of concern shall be given due consideration in the disposition of
shall be observed: agricultural lands of the public domain.
(1) Subsistence Fishing. — Small fisherfolk, including (7) Agriculture Graduates. — Graduates of agricultural
seaweed farmers, shall be assured of greater access to schools who are landless shall be assisted by the
the utilization of water resources. government, through the DAR, in their desire to own and
till agricultural lands.
(2) Logging and Mining Concessions. — Subject to the
requirement of a balanced ecology and conservation Farm settlements may be opened up in the following
of water resources, suitable areas, as determined by the areas:
Department of Environment and Natural Resources
(DENR), in logging, mining and pasture areas, shall be (a) Logging and mining concessions
opened up for agrarian settlements whose beneficiaries D Farm settlements may be opened here,
shall be required to undertake reforestation and provided that the beneficiaries will undertake
conservation production methods. Subject to existing reforestation and conservation production
laws, rules and regulations, settlers and members of tribal methods.
communities shall be allowed to enjoy and exploit the (b) Sparsely occupied public agricultural lands
products of the forest other than timer within the logging D Farm settlement may be opened up here for
concessions. qualified landless people pursuant to an
organized program to ensure orderly
(3) Sparsely Occupied Public Agricultural Lands. — development.
Sparsely occupied agricultural lands of the public
domain shall be surveyed, proclaimed and developed
as farm settlements for qualified landless people based
on an organized program to ensure their orderly and
early development.