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Agrarian Law Reviewer by Barte
Agrarian Law Reviewer by Barte
AGRARIAN LAW
by
Barte
INTRODUCTION
Agrarian Reform – refers not only to land reform but also embraces a full range
of measures designed to improve the relationship between landowner and tiller,
employer and employee, corporate management and stockholders, cooperatives
and members, and other farmers’ organizations including their economic, social
and political relations with the community and the government.
Comments:
Under the Comprehensive Agrarian Reform Law of 1998 (R.A. No. 6657),
Agrarian Reform is defined as the redistribution of lands, regardless of crops or
fruits produced, to farmers and regular farmworkers who are landless,
irrespective of tenurial arrangement.
AGRARIAN STRUCTURE
Refers to that complex set of relationships within the agricultural sector between
tenure structure, production structure and structure for supporting
services.
1. Land Tenure Structure – is a concept that connotes one or more types of
land tenure system regulating the rights to ownership and control and usages of
land and the duties accompanying such rights.
Comments:
Leasehold relationship abolished the share tenancy system under the Rice Share
Tenancy Act of 1933 as amended, P.D. No. 27 was issued by then President
Ferdinand Marcos which aside from upholding the leasehold relationship,
likewise ordained the emancipation of tenant-farmers from the bondage of the
soil, and considered them ipso facto owners of the lands they till primarily
devoted to rice and corn.
P.D. No. 27 (Tenants Emancipation Decree) likewise fixed the retention limit for
the landowner an area not exceeding seven (7) hectares, provided, that such
landowner is cultivating or will now cultivate the land, and furthermore, that he
does not own other agricultural lands of more than seven (7) hectares.
Comments:
Under R.A. No. 3844, as amended by R.A. No. 6389, there are three shifts in the
conversion of the tenurial status of tenant-farmer to full owner, namely: share
tenant to leaseholder to amortizing owner, and from amortizing owner to full
owner (owner-cultivator).
2. Production Structure – is a concept that refers to the use of the land, nature
and method of farm operation, and the process of production.
HISTORICAL BACKGROUND
Even before the Spaniard came into these Island, the idea of private ownership
of land was not prevalent. Land was commonly owned by the community or
barangay, cultivated communally or individually by members of the barangay.
When the Spaniard came in 1521, common ownership of land slowly took the
backseat, and private property became dominant, paving the way to Encomienda
system.
The encomienda was a vehicle used to collect taxes from Filipinos, who tilled the
land and surrendered part of their produce to the encomendero as tribute in the
form of agricultural crops, poultry, woven mats, etc. Towards the end of the 18 th
century, there was a mad scramble for wealth thru world trade. Thus,
encomienda were replaced by haciendas.
The state shall promote a just and dynamic social order that will free the people
from poverty through policies adequate social services, promote full employment,
a rising standard of living, and an improve quality of life for all.
The state shall promote a comprehensive rural development and agrarian reform.
The State shall, by law, undertake an agrarian reform program founded on the
right of the farmers and regular farmworkers, who are landless, to own directly or
collectively the lands they till or, in the case of other farmworkers, to receive a
just share of the fruits thereof. (Art. XIII, Social Justice and Human Rights, Sec.
4).
Treaty of Paris (1898) – the confiscation of friar lands and distributed among
peasants by the independent government of Malolos during the Philippine
Revolution.
Friar Land Act – Instituted transfer of friar lands to the tenants to diffuse the
peasant unrest.
Rice Share Tenancy Act (Public Act No. 4054) - which provided for a 50-50
sharing of the crop, an interest rte ceiling of 10 percent per crop year, and
safeguards against arbitrary dismissal of tenants by landlords.
Commonwealth Act.No. 278 of 1938 – to buy farms and large estates for
subletting to bonafide occupants with an option to buy, thru the National Land
Settlement Administration (NLSA).
Sugar Cane Tenancy Contracts Act. (Act. No. 4113) – makes it a duty of the
sugar central to exhibit to the tenant the receipts of the number of tons milled by
the landowner thereat.
Commonwealth Act. No. 103 – created the Court of Industrial Relations (CIR)
which exercised jurisdiction over disputes arising from relationship between
agricultural workers and landowners.
Commonwealth Act. No. 213 – deals with the right to form legitimate labor
organizations and to enter into collective bargaining agreements between
management and labor.
Commonwealth Act No. 178 – which improved the provision of Act No. 4054
the Rice Share Tenancy Act, giving more teeth and protection to the rights of
tenants of agricultural lands.
Republic Act. No. 34 – amended certain Sections of the Rice Share Tenancy
Act providing for a 70 – 30 crop – sharing method.
Republic Act No. 1199 (Agricultural Tenancy Act) – infused an added boost to
the tenurial rights of tenant – tiller.
Land Reform Act (R.A. No. 1400, 1955) - guaranteed the expropriation of all
tenanted landed estates. It set a retention limit of 300 hectares for individually –
owned estates, and 600 hectares for corporate – owned estates.
Republic Act. No. 1267 – An Act Creating the Court of Agrarian Relations to try
and decide all matters arising from the relationship of persons in the cultivation
and use of agricultural lands.
Republic Act. No. 3844 – marked the abolition of share tenancy and / or the
system of share – cropping between landowner and tenant, and the automatic
conversion of share tenants into leaseholders.
Agrarian Reform Special Fund Act (Rep. Act. No. 6390) – provided for a
special account and financial support for the Agrarian Reform Program of the
government.
Presidential Decree No. 2 – declaring the entire nation as a land reform area.
Executive Order No. 229 – Providing for the mechanisms for the implementation
of the comprehensive agrarian reform program, creating the Presidential
Agrarian Reform Council (PARC).
Executive Order No. 129-A – Modifying Executive Order No. 129, reorganizing
and strengthening the Department of Agrarian Reform.
Republic Act No. 6657 - As primary agrarian land reform measure in the
country today, its operation covers all public and private agricultural lands,
including other lands of the public domain suitable for agriculture.
CHAPTER I
AGRICULTURAL LEASEHOLD CONCEPT
Section 1. Title - This Act shall be known as the Agricultural Land Reform
Code.
1. PREFATORY STATEMENTS
The thrust of this legislation is the drastic abolition of share tenancy system. It
provided for the automatic conversion of the sharecropper to the status of an
agricultural lessee, governed by the system of agricultural leasehold which is
established either:
The Agricultural Land Reform Code still finds application to the following:
a. areas which have not come within the operation and implementation of
P.D. No. 27;
b. agricultural laborers subject to the provisions of the Labor Code;
c. organization and operation of the Land Bank;
d. provisions on resettlements of farmers;
e. right to pre-emption and redemption, with respect to land-owner’s retained
area, should such landowner decide to sell his tenanted / leased retained
area, the tenant has the preferential right to purchase and / or redeem the
same in case the land is sold to a third person without the tenant’s
knowledge;
f. right of the tenant / lessee to 75% share from the standing crops;
Under the present law (R.A. No. 6657) all controversies involving the
determination of just compensation and prosecution of all criminal offenses
arising from violations of the provisions of this Act, fall under the original and
exclusive jurisdiction of Special Agrarian Courts.
They shall be responsible for the development of plans and programs for the
extension of legal information to farmers; extension of legal services to them.
DEFINITION OF TERMS
Agricultural land – means land devoted to any growth, including but not limited
to crop lands, saltbeds, fishponds, idle land and abandoned land.
Agricultural lessee – means a person who by himself and with the aid available
from within his immediate farm household, cultivates the land belonging to, or
possessed by, another with the latter’s consent.
Agricultural year – means the period of time required for raising a particular
agricultural product.
Immediate farm household - means the members of the family of the lessee or
lessor and other persons who are dependent upon him for support.
Fair rental value – means the value not in excess of allowable depreciation plus
6% interest per annum.
Incapacity – means any cause or circumstance which prevents the lessee from
fulfilling his contractual and other obligations under the Code.
2. Share tenancy
3. Owner-cultivatorship
It makes it a penal offense to eject a tenant illegally from his holding except upon
approval of the court.
Security of land tenure “the agricultural leasehold relation under this Code, shall
not be extinguished by mere expiration of the term or period in the leasehold
contract, in case the agricultural lessor sells, alienates of transfers the legal
possession of the landholding, the purchaser or transferee thereof shall be
subrogated to the rights and substituted to the obligations of the agricultural
lessor.”
The absence of one does not make an occupant of a parcel of land or a cultivator
thereof, a de jure tenant, hence cannot invoke the defense of security of tenure.
Family-size farm – an area of farmland that permits efficient use of labor and
capital resources of the farm family and will produce an income sufficient to
provide a modest standard of living to meet a farm family’s needs for food,
clothing, shelter, and education with possible allowance for payment of yearly
installments on the land, and reasonable reserves to absorb yearly fluctuations in
income.
What now is the effect of the law to cultivator-tiller of a less than family-size
farms?
The transferee and his heirs are subrogated to the rights and obligations of the
former landowner. However, the change of landowner cannot be allowed to raise
the status of a mere caretaker or tiller – sharer to that of an agricultural tenant
and leaseholder.
Section 26, R.A. No. 3844, empowers the lessee to take direct action against any
trespasser to the landholding without waiting for the response from the lessor.
1. To inspect and observe the extent of compliance of their contract and the
provision of this Chapter;
2. To propose a change in the use of the landholding to other agricultural
purposes. In case of disagreement, the same shall be settled by the
Court (Now Adjudication Board);
3. To acquire the agricultural lessee, to adopt in his proven farm practices
necessary to the conservation of the land, improvement of its fertility and
increase its productivity: That in case of disagreement as to what proven
farm practice the lessee shall adopt, the same shall be settled by the
court (now the DARAB);
4. To mortgage expected rentals.
The lessee may seek relief from the nearest Regional Agrarian Reform
Adjudicators (RARAD) or the Provincial Agrarian Reform Adjudicators (PARAD)
to compel the agricultural lessor to comply with this obligation in case of refusal,
neglect or resistance on the part of the lessor.
The above causes are grounds for ejectment of an agricultural lessee only after
observance of due process.
In case the agricultural lessor decide to sell the landholding, the agricultural
lessee shall have the preferential right to buy the same under reasonable terms
and conditions: each shall be entitled to said preferential right only to the extent
of the area actually cultivated by him. The right of pre-emption may be exercised
within one hundred eighty (180) days from notice in writing, which shall be served
by the owner on all lessees affected and the Department of Agrarian Reform.
He must either tender payment of, or present a certificate from the Land Bank
that it shall make payment pursuant to Sec. 80 of this Code. If the latter refuses
to accept such tender or presentment, he may consign it with the Court.
Comments:
The lessee may consign the purchase money with the Department of Agrarian
Reform.
In case the landholding is sold to a third person without the knowledge of the
agricultural lessee, the latter shall have the right to redeem the same at a
reasonable price and consideration: where there are two or more agricultural
lessees, each shall be entitled to said right of redemption only to the extent of the
area actually cultivated by him. The right of redemption under this Section may
be exercised within one hundred and eighty days from notice in writing.
Upon the filing of the petition, the said period o one hundred and eighty days
shall cease to run.
The Department of Agrarian Reform shall initiate, while the Land Bank shall
finance, said redemption as in the case of pre-emption.
Right to Self-organization
The farmworkers shall have the right to self-organization and form, join or assist
farmworkers’ organizations of their own choosing for the purpose of collective
bargaining through representatives of their own choosing.
Comments:
The right to self – organization includes the right to strike and hold picket in order
to compel the management in the case of large scale plantations and
multinational corporations to meet the demands of the farm workers for wage
increase and better working conditions.
Irrigation Facilities
1. Should the lessor refuse to bear the expenses, he should not be entitled
to the increase in rental and shall upon the termination of the leasehold
relationship pay the lessee or his their the reasonable value of the
improvements at the time of the termination;
2. Should the lessor bear expenses he shall be entitled to an increase in the
rental proportionate to the resultant increase in production.
1. 25% of the average normal harvest – shall be the amount of rental for
ricelands or estimated normal harvest during the three (3) agricultural
years immediately preceding the establishment of the leasehold after
deducting the expenses for seeds, cost of harvesting, threshing, loading,
hauling and processing;
2. Average normal harvest for three (3) preceding years.
3. No agreement as to rental – the court (now DAR) shall fix a provisional
rental until fixed rental is determined within (30) days from submission of
the case for decision.
Amortization Payment for Land under Leasehold:
The rentals paid by the lessee to the lessor at the place agreed upon by the
parties shall be credited as amortization payments for the purchase price of the
landholding titled by the leasee:
Whatever balance remaining after crediting as amortization the rental paid, the
same may be finances by the Land Bank in the same ratio and mode of payment
provided under Section 80 of the Code.
Default on the Part of the Lessee: Should the lessee incur default in the payment
of at least three (3) installments on the loan, the lender shall immediately notify
the Land Bank and the DAR so that appropriate steps shall be taken by these
agencies:
a) to answer for the default in case the failure is due to fortuitous event
b) to take over the ownership and administration of the landholding.
Where the case of the default is attributable to the lessee, the DAR shall
endeavor to substitute the defaulting amortization owner. In case the default is
due to fortuitous event, the Land Bank shall assume the payment of the balance
and the farmer shall be released from his obligation.
Period of Prescription
An action to enforce any cause of action accruing under this Code (R.A. No.
3844) shall be brought within the period of three (3) years.