AGRARIAN REFORM

Prepared by: Prof. Victor C. Dapon

CONCEPTS

Reform - implies the existence of a defect that something is deformed or

malformed and does not suit existing conditions.

Land Reform - refers to the full range of measures that may or should be taken
to improve or remedy the defects in the relations among men (e.g.,
between the tiller and owner of the land, employee and employer in a
farm) with respect to their rights in land.
- integrated set of measures designed to eliminate obstacles to economic
and social development arising out of defects in the agrarian structures.

Agrarian Structure – is defined as a complex set of relationship within the

agricultural sector between tenure structure, production structure, and the
structure of supporting services.

Tenure Structure — is a concept which refers to one or more types of land

tenure systems regulating the rights to ownership and control and usage
of land and the duties accompanying such rights.

Land tenure reforms would include the following:

1. redistribution of private lands (through expropriation or purchase);

2. distribution of lands in the public domain sometimes also referred to as
resettlement or colonization;
3. regulation of tenancy (e.g. provisions of penalties for wrongly eviction of
tenants, prohibition of subletting by tenants);
4. regulation of agricultural labor contracts and wages;
5. Elimination of absentee landlordism and transfer of land ownership to the
actual tiller.

Production Structure - is a concept which relates to the nature, type and modus
operandi as well as the actual process of production or farm operation.

The following would fall under the production reform measures:

1. consolidation of small, uneconomic holdings to ensure optimum utilization;

2. imposition of a floor on holding of uneconomic size beyond which
subdivision is to he presented;
3. promotion of a cooperative or compact farming among sub marginal
farmers;
4. imposition of a ceiling on holdings of non-cultivating owners; and
5. organization of crop rotation systems.

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 Land tenure structure is a concept of “right in land’ referring to ownership,
lease, etc). While production structure is the concept of “production and use of
land”.

The structure of supporting services is a concept which involves matters

like credit, marketing. The supplying of agricultural requisites, processing,
storage, etc., and other technical assistance and/or services as far as they have
some immediate bearing on reforms of tenure and production structures.

Agrarian reform is considered wider than land reform. It comprises not

only land reform but also reforms and development of complimentary institutional
framework such as the administrative agencies of the national government
created to undertake land reform, local governments, rural educational and social
welfare institutions, and voluntary associations particularly farmers organizations.

In short, agrarian reform means solving the agrarian problem and thereby
elevate the quality of life of the rural population and make them active
participants in the economic, social and political affairs of their locality.

Examples of agrarian reform, measures are the following:

1. public health programs

2. family planning
3. educational and training of farmers
4. reorganization of land reform agencies
5. application of labor laws
6. construction of infrastructure facilities
7. providing employment to underemployed

ASPECTS OF AGRARIAN REFORM

A. Economic Aspect of Agrarian Reform

1. \/ital position of agriculture in national economy. IT is in the agricultural

sector that the battle for long term economic development in the
Philippines will be won or lost.
2. Obstacles to agricultural productivity. Low agricultural productivity in less
developed countries results from the interplay of many factors, including
small size of farms, lack of capital and hence, poor technology and
primitive methods of production, economic ignorance, a value system and
social structure that minimize the incentives for economic change,
inefficient marketing systems and lack of entrepreneurship.
3. Agrarian reform, an instrument for increasing agricultural productivity. The
economic reason for agrarian reform in the Philippines is its potentialities
for raising agricultural productivity. One method of motivating farmers to

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 increase their output is to make them own the land they till to free them
from the bondage of the landlords, not necessarily from the soil.

B, Socio-Cultural Aspect of Agrarian Reform

1. Agrarian reform, a multifaceted program. It implies socio-cultural

transformation.

2. Assumption about Filipino Tenant Farmers.

a) The tenancy problem has its roots in pre-Spanish and Spanish

pasts.
b) Deeply rooted in history, the tenancy system created a kind of
tenants who are strongly traditional and highly dependent minded.
c) There are only three kinds of landlords; the benevolent — one who
acts like a father to the tenant; the malevolent — one who
oppresses; and one with the combined characteristics of the first
two.

3. Socio-cultural changes from agrarian reform.

a) A change from self-subsistent outlook to one of surplus.
b) A sound social order in the farming villages was enhanced
significantly.
c) Farmer’ initiative and active participation in leadership roles were
promoted.
d) As land reform enhanced agricultural productivity and
consequently, increased net family income, the farmers were able
to send their children to school.

C. Religious Aspect of Agrarian Reform

1. Biblical background - Basic in biblical thinking is that God is the owner of

the earth and that he make it all for his children.

2. Papal teachings. The Vatican II Decree “Pastoral on the Church in the

Modern World”. Says; man should regard the external things that he
legitimately possesses not only as his own but also as common in the
sense that they should be able to benefit not only him but also others;”

3. Church estates. In the aspirations for land, the people rarely found help
and understanding in the leaders of the church. On the contrary, some
revolts directly involved lands owned by the hierarchical church.

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D. Moral of Agrarian Reform

1. One reason concerns the peace and internal stability of the country.
2. Another reason for agrarian reform is the fact that the land owner has
been more than compensated for his investment on the land, which the
tenant who made the landlords profits possible is still immersed in poverty.
3. There is also the question of injustice involved in landlordism. Share
tenancy is an unjust system.
4. Another consideration concerns the economy. It is contented that the
appropriation of lands and their equitable redistribution to the people is the
clue to national progress.

E. Legal Aspect of Agrarian Reform

1. Two vantage points. The first is strictly legal, and the second sociological.
2. Agrarian reform legislation to conform with constitution.
3. Constitutional mandates.
4. Policy development concerning agrarian reform.

F. Political Aspects of Agrarian Reform

1. Agrarian reform, a top priority goal of government.

2. Agrarian reform as a political process. It is ultimately the product of the

more deliberate political decisions.

REQUIREMENTS FOR SUCCESSFUL

IMPLEMENTATION OF AGRARIAN REFORM

1. It is necessary that any organization for its implementation should provide

for a line of command from the center to field levels in order to insure that
the policy is enforced and supported at all levels.

2. It is essential that the beneficiaries are provided with the necessary

supporting services.

3. It is necessary that the administrative organization and procedures as well

as the judicial system by which the newly conferred rights are to be
enforced, are refashioned in such a manner as to enable the attainment of
the objectives of the program.

4. It is desirable to involve the beneficiaries in the implementation of the

program.

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THE PHIUPPINE AGRARIAN PROBLEM

1. Two important dimensions — the land and the people the agricultural and
the social productivity and human rights.

2. A basic problem of Philippine society. Because the farmer is poor, he

cannot afford to pay more taxes and thus, government cannot raise
sufficient revenues with which to support its operations.

3. Basically a question of land distribution and utilization.

NECESSITY OF AGRARIAN REFORM IN THE PHILIPPINES

1. The Philippines has some of the most fertile lands in the world, yet
agricultural production is one of the lowest and the small farmers who
constitute the bulk of our population, are among the most impoverished.
Land reform would increase their production, set them free from poverty
and debt, and make them dignified participants in nation building.

2. Agrarian reform would liberate the capital for investment in new industries.
This would increase production and provide employment to our expanding
population and of course, raise general standard of living.

3. Land reform is the answer indeed to the communist challenge.

4. It will correct the present imbalance in our society where there are
enormous concentrations of land, wealth and political power in the hands
of a few.

5. Not The least, the land reform program will make democracy truly
meaningful to our people.

OBJECTION TO AGRARIAN REFORM

1. Fragmentation of farm holdings - wholesale reduction in the size of farm

units.
2. Small farms uneconomic - small farms are most productive and
economical only when operated on a big scale.
3. Small landholdings included - big percentage of landowners.
4. Agrarian reform failed in the past - lands given in the past have either
been sold by the tenant or have not been able to pay the lands given to
them.

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 Reasons for the failure:
1. the program stopped at land distribution
2. farmers were not prepared to take on the responsibilities
3 there was haphazard planning

COMPONENTS OF AGRARIAN REFORM

1. Land distribution — most effective way of providing security of tenure to

tillers of the soil.
2. Companion measures to and distribution:
a. credit
b. modern methods of production
c. marketing facilities, equitable pricing, infrastructure
d. cooperatives

THE COMPREHENSIVE AGRARIAN REFORM PROGRAM

A. COVERAGE

Scope of Agrarian Reform

1. In general - The CARP of 1988 covers, regardless of tenurial arrangement

and commodity produced, all public and private agricultural lands including
other lands of the public domain suitable to agriculture.
2. In particular - more specifically, the following land are covered by the
CARP.

a. All alienable and disposable lands of the public domain devoted to or

suitable for agriculture.
b. All lands of the public: domain in excess of the specific limits as
determined by congress taking into account ecological, developmental
and equity considerations;
c. All other lands owned by the government devoted to or suitable for
agriculture;
d. All private lands devoted to or suitable for agriculture regardless of the
agricultural products raised or that can be raised thereon.

3. Schedule of implementation - the distribution of all lands covered by the

act shall be implemented immediately and completed within 10 years from
the effectively thereof.

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Retention Limits

General Rule

 Landowners — 5 hectares
 Each child of landowner — 3 hectares subject to the following
qualifications:
a. That he is at least 15 years of age
b. That he is actually tilling the land or directly managing the farm

Exceptions:

 Landowners whose lands have been covered by PD 27.

 Original homestead grantees or their direct compulsory heirs who still own
the original homestead.

Validity of land transactions

Upon the effectivity of the act, any sale, disposition, management contract
or transfer of possession of private lands executed by the original landowner in
violation of the act shall be null and void. Those executed prior to the act shall be
valid only when registered with the Register of Deeds within a period of 3 months
after the effectivity of the act. Thereafter, all register of deeds shall inform in the
DAR within 30 days of any transaction involving agricultural lands in excess of 5
hectares.

Registrable transaction w/o need of prior clearance

1. Deed of extra judicial partition of the property of a deceased who died

prior to June 15, 1988;
2.
3. Deed of partition of property owned in common by co-owners prior to June
15, 1928;

3. Sub-division of title without change of ownership;

4. Deed of real estate mortgage executed by the original landownership of

beneficiary.

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Procedure in the issuance of clearance

1. A written request shall be filed by the applicant with the Municipal Agrarian
Reform Officer (MARO) with the following documents;
a. Deed of instrument to be registered.
b. OCT/TCT or tax declaration if the land is not covered by a certificate
of title;
c, Affidavit of transferee that he/she and spouses have a total
landholding inclusive of the and to he acquired of not more than 5
hectares.
d. Affidavit of transferor stating that the land subject of deed is a
retention or portion of the retention area.

2. The MARO shall determine the accuracy/truth of the instrument/deed and

affidavit as well as to:
a. Conduct field verification whether or not the subject land s tenanted
by a person other than the transferee.
b. Ascertain the subject land if the same is a retention or part of the
retention area of the vendor/transferor.
c Determine whether or not the total landholding of transferee and h
spouse will, as result of the deed exceed landownership ceiling.

3. The MARO shall forward the request and all the attached documents 10
the PARO with comments and recommendation.

4. The PARO shall examine the request and all the attached documents. If in
order, to issue clearance for the registration of the subject deed; and

5. The register of Deeds shall inform the DAR within 30 days of any
transaction involving land in excess of 5 hectares.

Right to choose area to be retained

1. General rule - the right: to choose the area to be retained, which shall be
compact or contagious. shall pertain to the landowner.

2. Exception — In case the area selected For retention by the landowner if

tenanted, the tenancy shall have the option to choose whether to remain
therein or be a beneficiary in the same or another agricultural land with
similar or comparable features.

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 a. In case the tenant chooses to remain n the retained area, he shall
be considered a leaseholder and shall lose his right to be
beneficiary under the act.
b. in case the tenant chooses to be beneficiary in another agricultural
land, he loses his right as a leaseholder to the land retained by the
landowner. The tenant must exercises this option within a period of
1 year from the time the landowner manifests his choice of the area
of retention.

Order of Priority

The DAR in coordination with the PARC shall plan and program the
acquisition and distribution of all agricultural lands through the period of 10 years
from the effectivity of the ACT.

Phase One:

1. Rice and Corn lands under PD # 27;

2. All idle or abandoned lands;

3. All private lands voluntarily offered by the owners for agrarian reform;

4. All lands foreclosed by the government financial institutions;

5. All lands acquired by the PCGG; and

6. All other lands owned by the government devoted to or suitable for

agriculture which shah be acquired and distributed immediately upon the
effectivity of the ACT. The implementation shall he completed within the
period of not more than years;

Phase Two:

1. All alienable and disposable public agricultural lands;

2. All arable public agricultural lands under the agro-forest, pasture and
agricultural leases already cultivated and planted to crops.

3. All public agricultural lands which are to be opened for new development
and resettlement; and

4. All private agricultural lands in excess of fifty (50) hectares.

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Phase Three:

1. Landholding above twenty four (24) hectares up to 50 hectares, to begin

on the fourth year from the effectivity of the Act.

Lands held by Multinational Corporations

government owned or controlled corporations

-its implementation to be completed within three years.

Multinational Corporation (MNC) is an international or transactional

corporation with headquarters in one country but has branch offices in a wide
range of both developed and developing countries.

Commercial Farming

Commercial farms are private agricultural lands devoted to commercial

livestock, poultry, and swine rising, and agriculture including salt beds, fishponds,
fruit farms, orchards, vegetable and cut flower farms, and cacao, coffee and
rubber plantations.

1. They shall be subject to immediate compulsory acquisition and distribution

after 10 years.
2. In the case of new farms, the 10 year period shall begin from the first year
of commercial production and operation, as determined by the DAR.

Ancestral Lands

Ancestral lands of each indigenous cultural community include, but are not
limited to, lands in the actual, continuous and open possession and occupation of
the community and members.

The right of those communities to their ancestral lands shall be protected

to ensure their economic, social and cultural well being.

Exemptions and Exclusions

The following are exempt from the coverage of the acts:

1. Lands actually, directly and exclusively used and found to be necessary

for:

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 a. parks, wildlife, forest reserves; reforestation, fish sanctuaries and
breeding grounds, water sheds and mangroves;

b. national defense;

c. school sites and campuses including experimental farm stations

operated by public or private schools for educational purposes, and
seeds and seedlings research and pilot production centers,

d. church sites and convents, mosques sites and Islamic centers;

e. commercial burial grounds and cemeteries;

f. penal colonies and penal farms actually worked by the inmates.

2. All lands with 18% slope and over, except those already developed.

B. IMPROVEMENT OF TENURIAL AND LABOR RELATIONS]

Agricultural Leasehold and Lease Rental Determination

By operation of law, all share crop tenants of covered agricultural lands

are automatically converted into agricultural lessees as of June 15, 1988; the
date of the effeclivity of the Acts;

The lease rental to be paid by all agricultural lessees shall not be more
than the equivalent of 25% of the average normal harvest during the three (3)
agricultural years immediately preceding June 15, 1988; after deducting the
amount used for seeds and the cost of harvesting, threshing, loading, hauling
and processing, or whichever is applicable.

Procedure governing determination of lease rental for tenanted lands

1. Identification phase by the MARO.

2. Determination and fixing of rental by MARO and BARC.

3. Documentation phase.

4. Submission or recommendation to PARO.

5. Resolution of protest to the DAR adjudication within 1 5 days.

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C. REGISTRATION

Registration of Landowner

Within 180 days from the effectivity of the ACT, all persons, natural or
juridical, including government, entities that own or claim to own agricultural
lands, whether in their names of others shall file a sworn statement in the proper
assessors office in the form to be prescribed by the DAR, stating the following
information’s:

1. the description and area of the property;

2. the average gross income from the property for at last 3 years;

3. the names of all tenants and farm workers therein;

4. the crops planted in the property and the area covered by each crop as of
June 1, 1987;

5. the terms of mortgages, leases, and management contracts existing as of

June 1. 1987;

6. the latest declared market value of the land as determined by the city or
provincial assessor.

Registration of beneficiaries

The DAR, in coordination with the BARC, shall register all agricultural
lessees, tenants and farm works who are qualified to be beneficiaries of the
CARP with the following data:

1. Names and members of their immediate farm household;

2. Owners or administrators of the lands they work on and the length of

tenurial relationship;

3. Location and area of the land they work;

4. Crops planted; and

5. Their share in the harvest or amount of rental or wages received.

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D. LAND ACQUISITION AND REDISTRIBUTION

Procedure for acquisition of private lands

1. Valuation of the land;

2. Notice from DAR to landowner of offer to acquire land;

3. Acceptance or rejection by landowner of offer within 30 days from the

receipt of written notice, landowner shall inform the DAR of his acceptance
or rejection of the offer.

4. Payment in case of acceptance within 30 days after he executes and

delivers a deed of transfer.

5. Determination of compensation in case of rejection.

6. Taking of possession and redistribution.

7. Appeal to court.

Qualified Beneficiaries

1. The lands covered by the CARP shall be distributed as much as possible

to landless residents of the same barangay, or in the absence thereof,
landless of the same municipality in the following order of priority:

a. agricultural lessees and share tenants;

b. regular farm workers;

c. seasonal farm workers;

d. other farm workers;

e. actual tillers or occupants of public lands;

f. collectives or cooperatives of the above beneficiaries; and

g. others directly working on the land.

2. The children of landowners who are qualified shall be given preference in

the distribution of the land of their parents.

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 3. Actual tenant-tillers in the landholding shall not be ejected or removed
there from.

4. Beneficiaries under PD 27 who have culpably sold, disposed of, or

abandoned their lands are disqualified to become beneficiaries of the
program.

5. A basic qualification of a beneficiary shall be his willingness, aptitude, and

ability to cultivate and make the lands as productive as possible.

6. If, due to the landowners retention rights or to the number of tenants,

lessees, or workers on the land, there is no enough land to accommodate
any or some of them, they may be granted ownership of other lands
available for distribution under the act.

7. Farmers already in place and those not accommodated in the distribution

of privately-owned lands will be given preferential rights in the distribution
of lands from the public domain.

8. No qualified beneficiary may own more than 3 hectares of agricultural

land.

Award ceiling for beneficaries

Beneficiaries shall be awarded an area not exceeding 3 hectares which

may cover a contiguous tract of land or several parcels of land cumulated U to
the prescribed award limits.

Payment by beneficiaries

1. Lands awarded pursuant to the act shall be paid for by the beneficiaries to
the LBP in 30 annual armortization at 6% interest per annum.

Transferability of awarded lands

1. Lands acquired by beneficiaries under the act may not be sold transferred
or conveyed except through hereditary succession, or to the government,
or to the LBP, or to other qualified beneficiaries for the period of 10 years.
However, the children or the spouse of the transferor shall have a right to
repurchase the land from the government or LBP within a period of 2
years.

2. If the lands has not been fully paid by the beneficiary, the rights to the land
may be transferred or conveyed, with prior approval of the DAR, to any

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 heir of the beneficiary who, as a condition for such transfer or conveyance,
shall cultivate the land himself.

E. COMPENSATION

Determination of just compensation

In determining just compensation, the following shall be considered:

a. the cost of acquisition of the land;

b. the current value of like properties;

c. its nature;

d. actual use and income;

e. the sworn valuation by the owner;

f. the tax declarations and

g. the assessment made by the government assessors.

Modes of compensation

The compensation shall be paid in one of the following modes, at the

option of the a landowner:

1. Cash payments, under the following terms and conditions;

a. For lands above 50 hectares, in so far as the excess hectare is
concerned - 25% cash, the balance to be paid in government
financial instruments negotiable at any time.

b. For lands above 24 hectares and up to 50 hectares - 30% cash, the

balance to be paid in government financial instruments negotiable at
any time.

c. For lands 24 hectares and below — 35% cash, the balance to he

paid in government financial instruments negotiable at any time.

2. Shares of stock in government - owned or controlled corporations, LBP

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

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 3. Tax credits which can be used against any tax liability; and Land Bank of
the Philippines bonds.

F. SUPPORT SERVICES

Support services to the beneficiaries

1. Land surveys and titling;

2. Liberalized terms on credit facilities and production loans.

3. Extension services by way of planting, cropping, production and post-

harvest technology transfer; as well as marketing and management
assistance arid support to cooperatives and farmers organizations;

4. Infrastructure such as access trails, mini dams, public utilities, marketing

and storage facilities: and

5. Research, production and use of organic fertilizers and other local

substances necessary to farming and cultivation.

Support services to landowners

1. The PARC, with the assistance of such other government agencies and
instrumentalities as it may direct, provides landowners affected by the
CARP and prior agrarian reform programs with the following services;

a. Investment information, financial and counseling assistance;

b. Facilities, programs and schemes for the conversion on exchange of

bonds issued by the National Government and Central Bank and
other government institutions and instrumentalities.

c. Marketing of LBP bonds, as well as promoting the market ability of

said bonds in traditional and non traditional financial markets and
stock exchanges; and

d. Other services designed to utilize productively the proceeds of the

sale of such lands for rural industrialization.

2. A landowner who invests in rural-based industries shall he entitled to the

incentives granted to a registered enterprise engaged in a pioneer or
preferred area of investment.

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 3. The LBP shall redeem a landowner’s LBP bonds at face value, provided
that the proceeds thereof shall be invested in a BOI registered company or
in any agri-business or agro-industrial enterprise in the region where the
landowner has previously made investments to the extent of 30% of the
face value of said LBP bonds subject to guidelines issued by the LBP.

Integrated approach to agrarian reform

The Comprehensive Agrarian Reform Program of the government is an

integrated plan of action in solving the problems of low productivity and poverty
of our farmers. The integrated program consists of 5 major components:

1. Land tenure improvement - this is aimed of making every tenant tiller own
the land he tills.

2. Institutional development - this involves the development of the

appropriate rural based institutions that would eventually release the tiller
from pernicious” institutional restraints and practices, especially in the
aspect of farm financing, marketing, and procurement of agricultural
inputs.

3. Agricultural development - this is aimed at increasing per hectare yield of

the emancipated tenants, thereby improving their standard of living.

4. Physical development - this consists of providing the infrastructure

supportive of agrarian reform, such as irrigation system, farm to market
roads, ports, bridges, school buildings, health centers and other
infrastructures, including rural electrification’s.

5. Personnel training and clientele development — the continuing education

program for agrarian reform is being carried out by the Bureau of Agrarian
Reform Information and Education.

Implementation and coordinating mechanism

1. The Department of Agrarian Reform (DAR) is the lead agency in the

CARP implementation.

2. The Presidential Agrarian Reform Council (PARC) in the highest policy

making and coordinating body on all matters concurring agrarian reform
change with the task of coordinating the implementation of the program
and ensuring the timely and effective delivery of the necessary support
services.

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 3. The Provincial Agrarian Reform Coordinating Council (PARCCOM) is in
charged with the province by province implementation of the CARP.

4. The Barangay Agrarian Reform Council (BARC) is in charge with the task
of acting on matters related to agrarian reform at the barangay level.

Prohibited acts and omissions

The following are prohibited:

1. The ownership or possession, for the purpose of circumventing the

provisions of the act, of agricultural lands in excess of the total retention
limits or award ceilings by any person, natural or juridical except under
those collective ownership by farmer-beneficiaries;

2. The forcible entry of illegal detainee by persons who are not qualified
beneficiaries under the act;

3. The conversion by any landowner of his agricultural land into any non-
agricultural use with intent to avoid the application of the ACT to his
landholdings and to dispossess his tenant farmers of the land tilled by the
them;

4. The willful prevention or obstruction by any person, association or entity of

the implementation of the CARP;

5. The sale, transfer or conveyance by a beneficiary of the right to use or any

other usufructuary right over the land he acquired by virtue of being a
beneficiary, in order to circumvent the provisions of the act.

Penalties

Any person who knowingly or willfully violates the provisions of the act
shall be punished by imprisonment of not more than one (1) month to not more
thin three (3) years or a fine of not less than P1,000 or not more than P15,000, or
both at the discretion of the court.

If the offender is a corporation or association, the officer responsible shall

or criminally liable.

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