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BING’S AGRARIAN 241 MIDTERM FILES 1

PRE-SPANISH PERIOD  peasants and workers organizations grew strength.  Presidential Decree No.27,October 21,1972– Restricted land reform
 peasants took up arms scope to tenanted rice and corn lands and set the retention limit at 7
 Before the Spaniards came the Filipinos lived in villages or  Anti- Japanese group, the HUKBALAHAP (Hukbo ng Bayan Laban sa hectares.
barangays ruled by chiefs or datus. Hapon)
 Everyone had access to the fruits of the soil. President Corazon C. Aquino (1986-1992)
PHILIPPINE REPUBLIC  Section 21 under Article II – “The State shall promote
SPANISH PERIOD comprehensive rural development and agrarian reform.”
After Philippine Independence in 1964 , problems of land tenure remained . o signed into law Republic Act No. 6657
 When the Spaniards came the concept of encomienda (Royal Land o became effective on June 15,1988
Grants) was introduced. President Manuel Roxas (1946-1948):  Executive Order No. 228, July 16,1987– Declared full ownership to
 “haciendas” (wealthy Chinese families)  Republic Act No. 34 – 70-30 sharing arrangements and regulating qualified farmer-beneficiaries covered by PD 27.
share-tenancy contracts.  Executive Order No. 229, July 22,1987– Provided mechanism for the
1ST PHILIPPINE REPUBLIC  Republic Act No.55 – more effective safeguard against arbitrary implementation of the Comprehensive Agrarian Reform Program
ejectment of tenants. (CARP).
 First Philippine Republic was established in 1899, Gen. Emilio  Executive Order No.405, June 14,1990 – Vested in the Land Bank of
Aguinaldo declared in the Malolos Constitution his intention to President Elpidio Quirino (1948-1953) the Philippines the responsibility to determine land valuation and
confiscate large estates.  Executive Order No. 355 issued on October 23,1950 – Replaced the compensation for all land covered by CARP.
 Aguinaldo’s plan was never implemented. National Land Settlement Administration with Land Settlement
Development Corporation (LASEDECO) President Fidel V. Ramos (1992-1998)
AMERICAN PERIOD His administration committed to the vision “Fairer, faster and more
President Ramon Magsaysay (1953-1957) meaningful implementation of the Agrarian Reform Program.
 Philippine Bill of 1902 – Set the ceilings: 16 hectares for private  Republic Act No. 1160 of 1954 -- Abolished the LASEDECO and  Republic Act No.7881, 1995 – Amended certain provisions of RA
individuals and 1,024 hectares for corporations. established the National Resettlement and Rehabilitation 6657 and exempted fishponds and prawns from the coverage of
 Land Registration Act of 1902 (Act No. 496) – registration of land Administration (NARRA) CARP.
titles under the Torrens system.  Republic Act No. 1199 (Agricultural Tenancy Act of 1954)–  Republic Act 8532,1998 (Agrarian Reform Fund Bill) –
 Public Land Act of 1903 – introduced the homestead system. o relationship between landowners and tenant farmers by additionalPhp50 billion for CARP and extended its implementation
 Tenancy Act of 1933 (Act No. 4054 and 4113) – regulated organizing share-tenancy and leasehold system. for another 10 years.
relationships between landowners and tenants of rice (50-50 o tenant has option to elect either share tenancy or
sharing) and sugar cane lands. leasehold President Joseph E. Estrada(1998-2000)“ERAP PARA SA MAHIRAP”
o it also created the Court of Agrarian Relations.  launched the Magkabalikat Para sa Kaunlarang Agraryo or
COMMONWEALTH PERIOD  Republic Act No. 1400 (Land Reform Act of 1955) – Created the MAGKASAKA.
Land Tenure Administration (LTA)
President Manuel L. Quezon espoused the “Social Justice” program. President Gloria Macapagal-Arroyo (2000-present):
President Carlos P. Garcia (1957-1961)  Land Tenure Improvement/Provision of Support Services
 1935 Constitution- “The promotion of social justice to ensure the  Continued the program of President Ramon Magsaysay.  Infrastructure Project/ KALAHI ARZone
well-being and economic security of all people should be the  Agrarian Justice
concern of the State” President Diosdado Macapagal (1961-1965)  CARPER
 Commonwealth Act No. 178 (An Amendment to Rice Tenancy Act  Republic Act No. 3844 of August 8,1963– Abolished shared tenancy,
No.4045) -Certain controls in the landlord-tenant relationships institutionalized leasehold.
 Commonwealth Act. No.461, 1937 – Specified reasons for the
dismissal of tenants and only with the approval of the Tenancy President Ferdinand Marcos(1965-1986)
Division of the Department of Justice.  Republic Act No.6389, (Code of Agrarian Reform) and RA No. 6390
 Rural Program Administration, created March 2,1939- purchase and of 1971 – Created the Department of Agrarian Reform and the
lease of haciendas and their sale and lease to the tenants. Agrarian Reform Special Account Fund.
o Provides automatic conversion of share tenancy to
leasehold
 Presidential Decree No. 2, September 26,1972 – Declared the AGRARIAN DISPUTE (Sec. [d])
JAPANESE OCCUPATION country under land reform program.
2 AGRARIAN 241 MIDTERM FILES BING’S
 any controversy relating to tenurial arrangements (leasehold,  Trial court declared private respondent as agricultural lessee and  Malabanan hired the Bejasas to plant on the land and clear it, with
tenancy, stewardship) over lands devoted to agriculture confirmed by CA. all the expenses shouldered by Malabanan.
 any controversy relating to compensation of lands acquired under SC:  Bejasas continued to stay on the land and did not give any
CARL and other terms and conditions of transfer of ownership.  ž SC found no reasons to disturb findings consideration for its use, be it in the form of rent or a shared harvest
 “tenancy relationship”  private respondent was in actual possession of land with family in a ISSUE: Whether or not there is a tenancy relationship in favor of the
farmhouse just like what a farm tenant normally would Bejasas
ESSENTIAL REQUISITIES  private resp. and wife were personally plowing, planting, weeding SC:
and harvesting.  Court found that there was no tenancy relationship between the
1. Parties – landowner & tenants  management was left entirely to private respondent parties. There was no proof that Malabanan and the Bejasas shared
2. Subject matter is agricultural land  private respondent shared the harvest with Suplico the harvests. Candelaria never gave her consent to the Bejasas’ stay
3. Consent of parties on the land. There was no proof that the Dinglasans gave authority
4. Purpose is agricultural production MONSANTO v. ZERNA to the Bejasas to be the tenant of the land in question. Not all the
5. Personal cultivation by tenant elements of tenancy were met in this case
6. Sharing of harvest between parties Tenancy relationship may be established verbally or writing
No proof of sharing in harvest
All requisites must concur, absence of one does not make one a tenant.  Spouses Zerna were charged with qualified theft for the taking of o while Bejasa testified, SC said only Bejasa’s word was
coconuts owned by petitioner. presented to prove this. Besides testimony was
Isidro v. CA  They were acquitted but required Zerna to return P1,100 to suspicious because of inconsistency Bejasa testified that
Monsanto on the ground that Monsanto did not consent to harvest he agreed to deliver 1/5 of harvest as owner’s share, yet
 ž Private respondent is owner of land; of coconut. at one time, he also mentioned that 25% was for
 ž Sister of private respondent allowed Isidro to occupy swampy  Who is entitled to P1,100 proceeds of copra sale. This falls under Malabanan and 50% for owner.
portion subject to condition to vacate upon demand DARAB o landowners never gave consent citing Chico vs. CA , 284
 ž Failure to vacate, unlawful detainer was filed against Isidro; There is Agrarian dispute 534 – “self serving statement are inadequate, proof must
 ž RTC dismissed because land is agricultural and so agrarian; 1. Subject of dispute was taking of coconuts be adhered”
SC: 2. Private respondents were overseers at time of taking by virtue of o even assuming that landowner agreed to lease it for
 ž Jurisdiction over subject matter determined from allegations of Agreement P20,000per year, such agreement did not prove tenancy .
complaint  Tenancy relationship may be established verbally or writing, Consideration should be harvest sharing.
 ž Court does not lose jurisdiction by defense of tenancy relationship expressly or impliedly
and only after hearing that, if tenancy is shown, the court should o here there was agreement which contradicts petitioner’s VALENCIA v. CA
dismiss for lack of jurisdiction contention that private respondents are mere overseers.
 ž Case involving agricultural land does not automatically make such Being overseers does not foreclose their being tenants. FACTS:
case agrarian 3. Petitioner allowed respondent to plant coconut, etc.  Valencia, owner of land, leased the property for five (5)years to Fr.
 ž Six requisites not present; 4. Harvests: receipts of remittance by respondent Andres Flores under a civil law lease concept;
 ž No contract to cultivate;  ž Petitioner is claiming the amount of P1,100 as balance from  Lease with prohibition against subleasing or encumbering the land
 Petitioner failed to substantiate claim that he was paying rent for proceeds of copra sale. without Valencia’s written consent.
use of land  ž Private respondents contend that this P1,100 is their  During the period of his lease, private respondents were instituted
compensation pursuant to tenurial arrangements. to cultivate without consent of Valencia
Suplico v. CA  ž Since this amount is intertwined with the resolution of agra  After lease, Valencia demanded vacate but refused;
 Suplico is a lessee of rice land dispute, CA correctly ruled that DARAB has jurisdiction.  Private respondents were later awarded with CLTs after they filed
 Private respondent was allowed by Suplico to till the land while  ž RTC has only jurisdiction over criminal and it acted beyond when application with DAR;
Suplico will provide the farm implements and thereafter Suplico it ruled that agri tenancy between parties. This belongs to DARAB.  CLTs were upheld by Exec Sec and CA.
was to receive cavans from the palay by way of rental ž ISSUE: Tenancy/Can a contract of civil law lease prohibit a civil law
 Years later, Suplico threatened to eject priv. resp. from the property lessee from employing a tenant on the land subject matter of the lease
 So private respondent filed an action for damages against Suplico in BEJASA v. CA agreement?
CAR ž
 Resp. Owner intervened in case and alleged the absence of  Candelaria owned two parcels of land, which she leased to
contractual relationship Malabanan.
SC:
BING’S AGRARIAN 241 MIDTERM FILES 3
 An allegation that an agricultural tenant tilled the land in question » No possession/entry is w/o knowledge of owner.
does not make the case an agrarian dispute. The elements of » Cultivation / possession not proven Section 4
tenancy must first be proved in order to entitle the claimant to  ž All alienable and disposable public lands
security of tenure.  As to the remaining twenty and more other complainants, it is  ž All private lands devoted to or suitable to agriculture
 A tenancy relationship cannot be presumed. With respect to the unfortunate that they have not shown that their cultivation,
lease agreement between Valencia and Fr. Flores, the lessee did not possession and enjoyment of the lands they claim to till have been Section 5
have any authority to sublease Valencia's property due to the by authority of a valid contract of agricultural tenancy. Schedule of Implementation
prohibition in their lease agreement  On the contrary, as admitted in their complaint a number of them
 R.A. No. 3844, as amended, does not automatically authorize a civil have simply occupied the premises in suit without any specific area  ž “The distribution xxx shall be implemented immediately and
law lessee to employ a tenant without the consent of the landowner. of tillage being primarily mere farm helpers of their relatives completed within ten years from effectivity hereof.”
The lessee must be so specifically authorized;  ž Sec. 63: “The initial amount needed to implement this Act for the
 A different interpretation would create a perverse and absurd ESCARIZ v. REVILLEZA (Tenancy Is Not Presumed) period of ten years upon approval hereof shall be funded from the
situation where a person who wants to be a tenant, and taking Agrarian Reform Fund created under Sections 20 and 21 of
advantage of this perceived ambiguity in the law, asks a third  ž Involving fruit on land owned by private respondent Executive Order No. 299. xxx.”
person to become a civil law lessee of the landowner. Incredibly,  ž Petitioner is claiming tenancy  ž RA 8542: amended Sec. 63 as follows: “The amount needed to
this tenant would technically have a better right over the property  ž DARAB considered petitioner a tenant; CA reversed implement this Act until 2008 shall be funded from the Agrarian
than the landowner himself SC: Tenancy is not presumed. Reform Fund.”
 No evidence to prove consent of parties and sharing of harvest  RA 9700, Sec. 21:
ALMUETE v. ANDRES (Issue on Ownership)  SC agreed with CA that there is no evidence on record to prove the “The amount needed to further implement the CARP as provided in
existence of the following elements: (a) the consent of the parties this Act, until June 30, 2014, upon expiration of funding under
ž Facts: and (b) the sharing of harvests Republic Act No. 8532 and other pertinent laws, shall be funded
 ž Almuete was in exclusive possession of subject land from the Agrarian Reform Fund and other funding sources in the
 ž Unknown to Almuete, Andres was awarded homestead patent due HEIRS OF JUGALBOT v. CA amount of at least One hundred fifty billion pesos
to investigation report that Almuete was unknown and waived his (P150,000,000,000.00)”
rights; Andres also represented that Almuete sold the property to FACTS:
Masiglat for radiophone set and that Masiglat sold to him for a  ž Jugalbot was issued EP;
carabao and P600.  ž EP was challenged by Heirs of private respondent before DARAB
 Almuete filed an action for recovery of possession and and seek cancellation of title and recovery possession; on appeal, MEANING OF SOCIAL LEGISLATION
reconveyance before trial court DARAB upheld but CA reversed Laws that seek to promote the common good, generally by protecting and
ž Issue is who between 2 awardees of lot has better right to property. SC: Absence of tenancy relationship. assisting the weaker members of society.
SC:  Taking of property violated due process (CA was correct in pointing
 This is controversy relating to ownership of farmland so, beyond out that Virginia A. Roa was denied due process because the DAR MEANING OF SOCIAL JUSTICE
the ambit of agrarian dispute failed to send notice of the impending land reform coverage to the Social Justice – is neither communism nor despotism, nor atomism, nor
 No juridical tie of landowner and tenant was alleged between proper party); no ocular inspection or any on-site fact-finding anarchy, but the humanization of the laws and the equalization of social and
petitioners and respondent. investigation and report to verify the truth of the allegations of economic forces by the state so that justice in its National and objectively
 RTC was competent to try the case. Nicolas Jugalbot that he was a tenant of the property; secular conception may at least be approximated. Social justice means the
 By analogy, Roxas & Co., Inc. v. Court of Appeals applies to the case promotion of the welfare of all the people, the adoption by government of
PASONG BAYABAS v. CA (No Evidence) at bar since there was likewise a violation of due process measures calculated to insure economic stability of all the component
 No concrete evidence of cultivation; No proof was presented except elements of society, through the maintenance of proper economic and social
 Development of land: converted from agricultural to residential as for their self-serving statements equilibrium in the interrelations of the members of the community,
approved by DAR. o Independent evidence, aside from self-serving constitutionally, through the adoption of measures legally justifiable, and
 Petitioners, claimed actual tillers of land, filed complaint for statements, is needed. extra-constitutionally, through the exercise of powers underlying the
damages alleging surreptitious conversion; private respondent o Plus CA findings - Jugalbot was oldier of US Army and existence of all government on time-honored principle of salus populi est
denied cultivation; waiver of rights was executed by some migrated to US and returned only in 1998, wife and suprema lex.
SC: no tenancy daughter were residents of California
» no allegation in complaint that petitioners members are  Land involved is residential and not agricultural because of zoning
tenants; waiver of rights constitutes abandonment ordinance
» no substantial evidence that private respondent is landlord Coverage THE CONSTITUTIONAL PROVISIONS ON AGRARIAN REFORM
4 AGRARIAN 241 MIDTERM FILES BING’S
(5) Specific provision on agrarian and natural resources reform. Article XIII: (R.A. No. 3844, as amended)
Liabilities of lessor if he ejects tenant without authorization?
Sec. 4. The State shall, by law, undertake an agrarian reform program founded BENEFICIARIES  Fine or imprisonment
on the right of farmers and regular farmworkers, who are landless, to own  Tenant Farmers  Damages suffered
directly or collectively the lands they till or, in the case of other farmworkers,  Agricultural wage-earners or farm workers  Attorney’s fees
to receive a just share of the fruits thereof. To this end, the State shall  Settlers including migrant workers  Remuneration for last income
encourage and undertake the just distribution of all agricultural lands, subject  Owner-cultivators of less than family-size farms
to such priorities and reasonable retention limits as the Congress may Lease rental
prescribe, taking into account ecological, developmental, or equity LANDS COVERED BY THE CODE Shall not be more than the equivalent of 25% of the average normal harvest
considerations, and subject to the payment of just compensation. In  Tenanted Areas during the 3 agricultural years immediately preceding the date of leasehold
determining retention limits, the State shall respect the right of small  Landed Estates after deducting amount used for seeds and costs of harvesting, threshing,
landowners. The State shall further provide incentives for voluntary land-  Old Settlements loading, hauling and processing.
sharing.  Proposed Settlements
TENANTS EMANCIPATION DECREE
Sec. 5. The State shall recognize the right of farmers, farmworkers, and COMPOSITION OF THE CODE (Pres. Decree no.27)
landowners, as well as cooperatives, and other independent farmers’ An agricultural leasehold system to replace all existing share tenancy systems
organizations to participate in the planning organization, and management of in agriculture. BENEFICIARIES
the program, and shall provide support to agriculture through appropriate Beneficiaries of the Decree are the bona fide tenant farmers of private
technology and research, and adequate financial, production, marketing, and Why leasehold? agricultural lands primarily devoted to rice and corn under a system of share-
other support services.  Protects tenurial and economic status crop or lease tenancy (not farm labor), whether classified as landed estate or
 Guarantees physical possession, enjoyment and management not.
Sec. 6. The State shall apply the principles of agrarian reform or stewardship,
 Assures continuity of relations
whenever applicable in accordance with law, in the disposition or utilization of The tenant farmer
 In case lessor sells or alienates the legal possession, transferee shall
other natural resources, including lands of the public domain under lease or whether in land classified aslanded estate (i.e., with an area of 24 hectares or
be subrogated to the rights and substituted to the obligations of
concession suitable to agriculture, subject to prior rights, homestead rights of above) or not, shall be deemed owner (subject to certain requirements and
lessor
small settlers, and the rights of indigenous communities to their ancestral conditions) of a portion constituting a family size of five (5) hectares, if not
lands. irrigated and three (3)hectares, if irrigated. Lands transferred to tenant-
Agricultural leasehold?
“The State may resettle landless farmers and farmworkers in its own farmers under the Decree will revert to the government and not to the
A juridical tie between lessor and lessee
agricultural estates which shall be distributed to them in the manner provided landowners in case where the tenant abandons his tillage or refuses to take
by law. advantage of his rights under the laws.
Grounds to dispossess a lessee?
 Failure to substantially comply with terms and conditions unless by
Sec. 7. The State shall protect the rights of subsistence fishermen, Note that the Decree does not apply to lands owned by the government or
fortuitous event
especially of local communities; to the preferential use of the communal government-owned corporation.
marine and fishing resources, both inland and offshore. It shall provide  Planting of crops or use land for other purpose than that agreed
support to such fishermen through appropriate technology and research,  Failure to adopt proven farm practices to conserve land
adequate financial, production, and marketing assistance, and other services.  Fault or negligence resulting in substantial damage
The State shall also protect, develop, and conserve such resources. The  Does not pay rental when due
 Employed a sublessee PD 27
protection shall extend to offshore fishing grounds of subsistence fishermen
against foreign intrusion. Fishworkers shall receive a just share from their
Extinguishment of relation v. dispossession?  DIFFERENCE
labor in the utilization of marine and fishing resources.
 Extinguishment – no court approval: voluntary act (abandonment of o PD 27 – rice & corn land
land without knowledge of lessor, voluntary surrender by lessee) or o RA 6657 – all other agricultural land (including lands of public
Sec. 8. The State shall provide incentives to landowners to invest the proceeds
act of God domain)
of the agrarian reform program to promote industrialization, employment
creation, and privatization of public sector enterprises. Financial instruments  Dispossession – with court order: premised on offense by lessee
used as payment for their lands shall be honored as equity in enterprises of Can relation be terminated by death?
No, continue between lessor and members of lessee’s immediate farm  Sigre v. CA
their choice.
household to be chosen by lessor within 1 month from death: 1. surviving o PD 27 is suppletory and operates separately from RA 6657
THE CODE OF AGRARIAN REFORMS spouse; 2. eldest direct descendant by consanguinity; 3. next eldest
descendants in the order of their age.
BING’S AGRARIAN 241 MIDTERM FILES 5
 Can lands required under PD 27 be transferred by DAR to  Industrial, not agricultural activity.  Lands ADE used for livestock purposes as of 15 June 1988 and
another qualified beneficiary?  Great portion of the investment in this enterprise is in the form of continuously used shall be excluded; conversely, those not ADE are
o Estolas v. Mabalot: land may only be transferred either by industrial fixed assets, such as: animal housing structures and subject to CARP if one or more of the following conditions apply: (1)
succession or to government. facilities, drainage, waterers and blowers, feedmill with grinders, there is agricultural activity in the area (i.e., cultivation of soil,
mixers, conveyors, exhausts and generators, extensive warehousing planting of crops, growing of trees including harvesting); (2) land is
 Land Bank v. Heirs of Cruz facilities for feeds and other supplies, anti-pollution equipment like suitable for agriculture and occupied and tilled by farmers.
o determination of just compensation should be based on RA bio-gas and digester plants augmented by lagoons and concrete  In line with principle of regularity in the performance of official
6657 for lands covered under PD 27. ponds, deepwells, elevated water tanks, pumphouses, sprayers, and functions, all processes by DAR per AO No. 9 are valid
o PD 27 applies only suppletorily. other technological appurtenances
Sec. 3 (c) “Agricultural land”
CHAPTER 1 Admin. Order No. 01, S. 2004  land devoted to agricultural activity
 Objective: to prevent circumvention of CARP and to protect the  not classified as mineral, forest, residential, commercial or
 Is industrialization a component of Agrarian Reform? rights of ARBs due to unauthorized change/conversion or industrial
fraudulent declaration of areas used for cattle purposes
Sec.2 (RA 6657)  Coverage: all applications for exclusion from CARP of private agri Natalia Realty v. DAR
o “ …sound rural development and industrialization” lands actually, exclusively and directly used for cattle raising as of  1979, Presidential Proclamation No. 1637 set aside 20,312 hectares
o “…to promote industrialization” 15 June 1988 of land located in the Municipalities of Antipolo, San Mateo and
o Industrial inputs necessary to agriculture (fertilizers,  Types of animal: cattle (of bovine family), bull, calf, cow Montalban as townsite areas to absorb the population overspill in
insecticides, hybrid seeds, irrigation systems, tractors)  Policies: the metropolis which were designated as the Lungsod Silangan
(1) Those ADE used for cattle raising as of 15 June 1988 shall be Townsite. The NATALIA properties are situated within the areas
 Can private corporation acquire ownership of alienable lands excluded (exclusion to be granted only upon proof and proclaimed as townsite reservation.
of public domain? continuously utilized up to time of application);  NATALIA properties later became the Antipolo Hills Subdivision
(2) Any change in use shall be subject to policies on land  Notice of Coverage on the undeveloped portions of the Antipolo
Chavez v. PEA conversion Hills Subdivision which consisted of roughly 90.3307 hectares.
o No, only through lease not exceeding 25 yrs. , renewable not (3) Only the grazing/pasture area and for infrastructure necessary NATALIA immediately registered its objection to the Notice of
more than 25yrs. and not to exceed 1,000 hectares (CONST., for cattle raising shall be excluded; all other areas shall be Coverage
Art. XII, Sec.3) covered  “they ceased to be agricultural lands upon approval of the
(4) Encourage growth of cattle industry reservation”
Sec. 3 (b) “Agriculture” or “Agricultural Activity” (5) If filing of exclusion is in response to notice of CARP coverage,  lands previously converted by government agencies, other than
Means the cultivation of the soil, planting of crops, growing of fruit trees, DAR shall deny due course if application is filed 60 days after DAR, to non-agricultural uses prior to the effectivity of the CARL
raising of livestock, poultry or fish including the harvesting of such farm date of receipt of notice were outside the coverage of that law
products, and other farm activities and practices performed by a farmer in (6) Only exclusion applications fully supported by documents  ruling not confined solely to agricultural lands located within
conjunction with such farming operations done by person whether natural or shall be accepted townsite reservations, but applied also to real estate converted to
juridical. non-agricultural uses prior to the effectivity of the CARL
DAR v. Sutton
Luz Farms v. Sec.  Masbate land - cattle-breeding capital of Phil (VOS - due to Luz DAR AO No. 4 (Rules on exemption)
 Sec.3 (b) unconstitutional (“raising of livestock, poultry and swine” Farms - withdraw VOS) “all lands already classified as commercial, industrial or residential before
per SC)  Constitutionality of AO No. 9, S. 1993 (prescribing a maximum June 15,1988 no longer need conversion clearance”
 “use of land is incidental and not the principal factor” retention limit for owners of lands devoted to livestock raising);
 SC nullified AO; RA 7881 changed definition of “agricultural activity“ Requirements
RA 7881 (effective May 1995) by dropping from its coverage lands that are devoted to commercial (1) Sworn application, copy of title, certification from HLURB (zoning or
 amended Sec.3(b) and removed “the raising of livestock, poultry or livestock, poultry and swine-raising. Congress clearly sought to classification, citing zoning ordinance), among others
fish” align the provisions of our agrarian laws with the intent of the 1987 (2) Public notice
Constitutional Commission to exclude livestock farms from the (3) Disturbance compensation
coverage of agrarian reform.
Luz Farms Case
 Raising of livestock, swine and poultry is different from crop or tree Admin. Order No. 07, S. 2008
farming. Policy guidelines:
6 AGRARIAN 241 MIDTERM FILES BING’S
Roxas & Co. landholding had already been earmarked for residential use in  Extinguishment – no court approval: voluntary act (abandonment of
 Notice of coverage was wrongfully sent 1982, as petitioner claims, then there would have been no necessity land without knowledge of lessor, voluntary surrender by lessee) or
SC for the passage of the 1994 Ordinance act of God
 DAR's failure to observe due process in the acquisition of  Dispossession – with court order: premised on offense by lessee
petitioners' landholdings does not ipso facto give the Supreme Can relation be terminated by death?
Court the power to adjudicate over petitioner's application for No, continue between lessor and members of lessee’s immediate farm
conversion of its haciendas from agricultural to non-agricultural. THE CODE OF AGRARIAN REFORMS household to be chosen by lessor within 1 month from death: 1. surviving
The power to determine whether Hacienda Palico, Banilad and (R.A. No. 3844, as amended) spouse; 2. eldest direct descendant by consanguinity; 3. next eldest
Caylaway are non-agricultural, hence, exempts from the coverage of descendants in the order of their age.
the CARL lies with the DAR, not with the Supreme Court. BENEFICIARIES
 Case was remanded to DAR for proper acquisition proceedings and  Tenant Farmers Liabilities of lessor if he ejects tenant without authorization?
determination of petitioner's application for conversion  Agricultural wage-earners or farm workers  Fine or imprisonment
 Settlers including migrant workers  Damages suffered
NHA v. Allarde  Owner-cultivators of less than family-size farms  Attorney’s fees
SC  Remuneration for last income
 As early as April 26, 1971, the Tala Estate (including the disputed LANDS COVERED BY THE CODE
lots) was reserved under Presidential Proclamation No. 843, for the  Tenanted Areas Lease rental
housing program of the National Housing Authority, the same has  Landed Estates Shall not be more than the equivalent of 25% of the average normal harvest
been categorized as not being devoted to the agricultural activity  Old Settlements during the 3 agricultural years immediately preceding the date of leasehold
contemplated by Section 3 (c) of R.A. No. 6657, and is, therefore, after deducting amount used for seeds and costs of harvesting, threshing,
 Proposed Settlements
outside the coverage of the CARL. Verily, the assailed Orders of the loading, hauling and processing.
respondent Court declaring the lots under controversy as
COMPOSITION OF THE CODE
"agricultural land" and restraining the petitioner from involving the TENANTS EMANCIPATION DECREE
An agricultural leasehold system to replace all existing share tenancy systems
same in its housing project thereon, are evidently bereft of any (Pres. Decree no.27)
in agriculture.
sustainable basis
Why leasehold? BENEFICIARIES
Advincula-Velasquez v. CA Beneficiaries of the Decree are the bona fide tenant farmers of private
 Protects tenurial and economic status
SC agricultural lands primarily devoted to rice and corn under a system of share-
 Guarantees physical possession, enjoyment and management
 Since the property was already reclassified as residential by the crop or lease tenancy (not farm labor), whether classified as landed estate or
 Assures continuity of relations
Metro Manila Commission and the HSRC before the effectivity of not.
 In case lessor sells or alienates the legal possession, transferee shall
Rep. Act No. 6657, there was no need for the private respondent to
be subrogated to the rights and substituted to the obligations of
secure any post facto approval thereof from the DAR The tenant farmer
lessor
whether in land classified aslanded estate (i.e., with an area of 24 hectares or
Alangilan v. Office of President above) or not, shall be deemed owner (subject to certain requirements and
Agricultural leasehold?
SC conditions) of a portion constituting a family size of five (5) hectares, if not
A juridical tie between lessor and lessee
 It is beyond cavil that the Alangilan landholding was classified as irrigated and three (3)hectares, if irrigated. Lands transferred to tenant-
agricultural, reserved for residential in 1982, and was reclassified farmers under the Decree will revert to the government and not to the
Grounds to dispossess a lessee?
as residential-1 in 1994. However, contrary to petitioner's landowners in case where the tenant abandons his tillage or refuses to take
 Failure to substantially comply with terms and conditions unless by
assertion, the term reserved for residential does not change the advantage of his rights under the laws.
fortuitous event
nature of the land from agricultural to non-agricultural. As aptly
explained by the DAR Secretary, the term reserved for residential  Planting of crops or use land for other purpose than that agreed Note that the Decree does not apply to lands owned by the government or
simply reflects the intended land use. It does not denote that the  Failure to adopt proven farm practices to conserve land government-owned corporation.
property has already been reclassified as residential, because the  Fault or negligence resulting in substantial damage
phrase reserved for residential is not a land classification category.  Does not pay rental when due
 Indubitably, at the time of the effectivity of the CARL in 1988, the  Employed a sublessee
subject landholding was still agricultural. This was bolstered by the CHAPTER II
fact that the Sangguniang Panlalawigan had to pass an Ordinance in HOMESTEAD GRANTEES (Sec.6)
1994, reclassifying the landholding as residential-1. If, indeed, the Extinguishment of relation v. dispossession?
BING’S AGRARIAN 241 MIDTERM FILES 7
Homestead Patent  Paris claimed that she is entitled to retention and that as original
 a mode of acquiring alienable and disposable lands of public domain for homestead grantee, she is entitled to retain the lands to the DAR Adm. Order # 2, S.2003
agricultural purposes conditioned upon actual cultivation and residence exclusion of tenants.  Who may apply for retention
SC:  Period to exercise right of retention
 filed at CENRO where land being applied is located  Petitioner’s contention is w/o legal basis  Where to file
 who are qualified  PD applies to all tenanted private agriculture lands primarily  Instance where owner is considered to have waived his right of
o citizens of Philippines devoted to rice and corn. Nowhere does it appear that lots obtained retention
o over 18 years old by homestead patents are exempted from its operation.  Operating produces: MARO – PARO – REG. DIRECTOR- Sec. (Appeal)
o not owner of more than 12 hectares of land (Art XII, Sec. 3,  Under RA 6657, rights of homestead grantee are provided but with  “That landholdings of landowners with a total area of five (5)
1987 Constitution) condition: only for “as long as they continue to cultivate them”. hectares and below shall not be covered for acquisition and
 That parcels of land are covered by homestead will not distribution to qualified beneficiaries”. (RA 9700, Sec. 3)
 designed to distribute disposable agricultural lots of the State to land- automatically exempt them from operation of land reform. It is the  “SEC. 6-A. Exception to Retention Limits. - Provincial, city and
destitute citizens for their home and cultivation. Pursuant to such fact of continued cultivation by original grantees or direct municipal government, units acquiring private agricultural lands by
benevolent intention the State prohibits the sale or encumbrance of the compulsory heirs that shall exempt their lands. expropriation or other modes of acquisition to be used for actual,
homestead (CA 141, Section 116) within five years after the grant of the  Petitioner can retain however 5 hectares which require no direct and exclusive public purposes, such as roads and bridges,
patent. After that five-year period the law impliedly permits alienation of qualifying condition (Sec.6) public markets, school sites, resettlement sites, local government
the homestead, but in line with the primordial purpose to favor with the  Petitioner’s heirs are not entitled to awards of 3 hectares each since facilities, public parks and barangay plazas or squares, consistent
homesteader and his family the statute provides that such alienation or they are not actually tilling the land or directly managing the farm. with the approved local comprehensive land use plan, shall not be
conveyance (Section 117) shall be subject to the right of repurchase by  As compared to Alita, owner was desirous of personally cultivating subject to the five (5)-hectare retention limit under this Section
the homesteader, his widow or heirs the homestead, thus Court upheld right of homestead owners. xxx.” (RA 9700, Sec. 4)
 In this case, petitioner and heirs did not cultivate the land and have
CARL Recognizes Rights of Homesteaders (Sec.6) not expressed any desire to cultivate them. Sec. 10. Exemptions and Exclusions
 expressly recognized in Sec. 6, Art XIII, Constitution  lands ADE used for parks, wildlife, forest reserves, reforestation,
Retention Rights fish sanctuaries and breeding grounds, watersheds and mangroves
ALITA v. CA (1989)  NCC: (exempt);
 private respondents predecessors-in-interest have acquired 2 o conjugal – total is 5;  private lands ADE used for prawn farms and fishponds (exempt)
parcels of land in Zamboanga del Sur thru homestead patent o capital/paraphernal – not more than 5 each but not  lands ADE used and found to be necessary for national defense,
 petitioners/ tenants refuse to vacate relying on PD27 exceed 10 school sites and campuses including experimental farm stations,
SC:  FC (Aug.3,1988) per DAR Adm. Order No. 2, s. 2003: seeds and seedlings research, church sites and convents, mosque
 PD decreed the emancipation of tenants from bondage of soil and o capital/paraphernal – not to exceed 5 provided with sites, communal burial grounds and cemeteries, penal colonies and
transferring to them ownership of land they till. judicial separation farms and all lands with 18% slope and over (exempt)
 However, PD27 cannot be involved to defeat the very purpose of CA o absolute (presumed) – total not to exceed 5
141 (Public Land Act) Exemptions From Coverage (Sec. 10)
 Phil. Constitution respects the superiority of homesteader’s rights Landowner’s Retention Rights
and CARL also.  Is this right defeated by the issuance of CLTs/EPs or CLOAs? CENTRAL MINDANAO v. DARAB
 The subject lands are exempted because they are actually, directly &
¨Sec. 6: DAEZ v. CA exclusively used and found necessary for school site and campus,
“xxx Provided, further, That original homestead grantees or their direct  Issuance of EPs/CLOA’s to beneficiaries does not absolutely bar including experimental farm stations for educational purposes and
compulsory heirs who still own the original homestead at the time of the landowner from retaining the area. for establishing seed and seeding research
approval of this Act shall retain the same areas as long as they continue to  In fact, EP or CLOA may be cancelled if land covered in later found  The construction of DARAB in Section 10 restricting the land area of
cultivate said homestead. xxx.” to be part of landowner’s retained area CMU to its present needs overlooked the significant factor it growth
 In this case, CLTs of private respondent were leased w/o according of a university in years to come. By the nature of CMU, which is a
Daez her right of choice. So DAR was ordered to fully accord Daez school established to promote agriculture & industry, the need for
her rights under Sec.6 of RA 6657. vast tract of agriculture land for future programs of expansion is
PARIS v. ALFECHE (2001)  Retention by landowner: 5 hectares obvious.
 Paris is owner of 10 hectares in Bukidnon and another property of  Retention by each child of landowner: 3 hectares provided:  While portion of CMU land was leased by Phil. Packing Corp.(now
13 hectares. She admitted that land is fully tenanted by private 1. at least 15 years of age; and Del Monte), the agreement was prior to CARL & was directly
respondents Alfeche,et al. 2. actually tilling the land or directly managing the farm
8 AGRARIAN 241 MIDTERM FILES BING’S
connected to the purpose & objectives of CMU as educational wholly agricultural as they consist of mountainous area with an  DAR issued A.O #9 (1993) which provide that only portions of land
institution average of 28% slope; used for raising of livestock, poultry & swine shall be excluded.
 As to determination of when and what lands are found to be  The CARL has further provided that all lands with 18% slope and  DAR partially exempted portion but ordered acquisition the rest.
necessary for use of CMU, school is in best position to resolve & over except those already developed shall be exempt from the SC:
answer the question. DARAB & CA have no right to substitute unless coverage of CARL.  AO is invalid as it contravene Constitution since livestock,
it is manifest that CMU has no real need for land. swine/poultry raising do not fall under “agriculture” & “agricultural
STA. ROSA activity”
ATLAS FERTILIZER v. SEC. Material is exempted from CARP
 Atlas engaged in the aquaculture industry utilizing fishponds and Plus 18% slope lands so exempted. Adm. Order #7 (2008) (Guidelines per Sutton Case (livestock raising)
prawn farms; challenged RA 6657 which coverage lands devoted to  Lands ADE used for livestock like cattle raising as of 15 June 1988 &
the aquaculture industry, particularly fishponds and prawn farms. Commercial Farms (Sec. 11) continuously devoted shall be excluded.
SC:  Commercial farms – private agricultural lands devoted to saltbeds, fruit
 R.A. No. 7881 expressly state that fishponds and prawn farms are farms, orchards, vegetable and cut-flower farms and cacao, coffee and  Those not ADE are subject to CARP provided agricultural activity
excluded from the coverage of CARL. In view of the foregoing, the rubber plantations. They are subject to compulsory acquisition and land is suitable for agriculture presently tilled by farmers.
question concerning the constitutionality of the assailed provisions distribution after 10 years from effectivity.
has become moot and academic with the passage of R.A. No. 7881 LUZ FARMS
 Sec. II which includes “private agricultural land devoted to
SANCHEZ v. MARIN commercial livestock, poultry & swine raising” in definition of CHAPTER III
Issue: “commercial farms” is invalid. IMPROVEMENT OF TENURIAL & LABOR RELATION
 Whether the subject fishpond is exempted/excluded from the
coverage of the Comprehensive Agrarian Reform Program of the Adm. Order #01 (2004) WAYS IN DISTRIBUTING LANDS TO QUALIFIED FARMERS?
government by virtue of the amendments introduced by R.A. No. rules & regulations governing exclusion of agricultural land used for cattle
 Compulsory acquisition (Sec.16)
7881 to R.A. No. 6657 raising from CARP.
 Voluntary offer to sell/voluntary land transfer (Sec.20)
SC:
 Non-land transfer schemer
 Section 2 of Republic Act No. 7881 amended Section 10 of Republic Citing Luz Farms case
o stock distribution option(SDO)
Act No. 6657 by expressly exempting/excluding private lands  Private agricultural land or portions thereof actually, exclusively
o production & profit sharing (PPS)- Sec. 13/32)
actually, directly and exclusively used for prawn farms and &directly used for cattle raising as of 15 June 1988 shall be
excluded. o leasehold operation(Sec.12)
fishponds from the coverage of the CARL.
 Exclusion shall be granted only upon proof of AED prior to 15 June
REPUBLIC v. CA 1988 & continuously utilized for such purpose up to application Sec.12 of 6657 mandates DAR to determine & fix the lease rentals within
 Any act to change or convert; w/ intent to avoid CARP, shall be the retained areas and areas not yet acquired
 Tax declaration classified subject land as agricultural
 DAR issued notice of coverage & owner applied for exemption. invalid
Sec. 6 of 6657 recognizes the right of farmer to elect
 Application was denied and on appeal the Court of Appeals created  Only the grazing area & portions of property required for
- farmer-beneficiary
a commission to conduct ocular inspection and survey the land. infrastructure necessary for cattle raising shall be considered for
exclusion - leaseholds in retained area
Later, based on the report submitted by the commission, the Court
of Appeals reversed the Order of the DAR and exempted the lands  A.O #9, S of 1998 – allows commercial farms certain options, subject
to approval of DAR & workers: (aside from voluntary & compulsory Sec.67 of 6657 directs RD to register patents, title & documents required
from CARL.
coverage) for implementation of CARP
 Republic contends that tax declaration classified it as agriculture &
which cannot be altered by mere ocular inspection.  CLOAs are issued in name of cooperative of workers
o joint venture  Pursuant to DAR’s mandate to protect the rights & improve
tenurial & economic status of farmers in tenanted lands, DAR
o grower ship agreement
issued AO 02-06
SC: o lease – back
 Leasehold is based on tenancy relationship (repeat 6
 There is no law/jurisprudence that land classification in tax o direct payment requisites)
declaration is conclusive; tax declaration is clearly not sole basis of DAR v. SUTTON
classification of land. SC gave credence to commission’s report.  land devoted to cow & calf breeding  Leasehold relation shall not be extinguished by expiration at
 Based on their report, it was found that the land use map submitted
term nor by sale . In case of alienation, purchaser/transferee
by private respondent was an appropriate document consistent  Lands under VOS before CARP shall be subjugated to rights/obligation of lessor.
with the existing land use. It was confirmed that the lands are not  After CARP & Luz Farms case, Sutton filed withdrawal of VOS
BING’S AGRARIAN 241 MIDTERM FILES 9
lack of notice or non-observance of due process in attacking the (f) collectives or cooperatives of the above beneficiaries; and
 DARAB has jurisdiction to cancel leasehold contract . proceedings. (g) others directly working on the land;

 The consideration of lease shall not be more than 25% of CHAPTER V (2) The children of landowners who are qualified shall be given preference in
average normal harvest during 3 agri years LAND ACQUISITION the distribution of the land of their parents.

AO 02-06 states, among others, the rights & obligations of lessor/lessee.  Sec. 16 outlines the procedure for acquisition of private land (3) Actual tenant-tillers in the landholding shall not be ejected or removed
 Take note of Sec.16 (d) & (e): therefrom.
CHAPTER IV 1. practice of having no deed of transfer or conveyance
REGISTRATION 2. titles are cancelled w/o owner’s copy surrendered (in Torren's (4) Beneficiaries under Presidential Decree No.27 who have culpably sold,
System, if there is refusal in involuntary dealings remedy is file disposed of, or abandoned their lands are disqualified to become beneficiaries
Sec. 14 & 15 require the registration of landowners & beneficiaries w/ DAR. petition in count under the Program.
Purpose is to establish databank & identify actual famer-beneficiaries. 3. RD titles are cancelled while owner’s copy is subsisting
 Sec. 66 (Exemptions from taxes &fees of land transfer) (5) A basic qualification of a beneficiary shall be his willingness, aptitude, and
 Sec. 67 (Free Registration of patents, titles & documents required ability to cultivate and make the land as productive as possible.
FORTICH v. CORONA for implementation of CARP) (6) If, due to the landowner’s retention rights or to the number of tenants,
 intervenors claimed that they are farmworkers & so intervened in  Sec. (e): Once DAR request and LBP makes deposit of initial lessees, or workers on the land, there is not enough land to accommodate any
case. valuation, can request RD to cancel title & transfer it to Republic of or some of them, they may be granted ownership of other lands available for
SC Phil. distribution under the Act, at the option of the beneficiaries.
 there is no ruling yet from DAR whether intervenors are o So even if landowners protest valuation, distribution of land
beneficiaries, so they have no standing yet to intervene in the case. will proceed. (8) No qualified beneficiary may own more than three (3) hectares of
 DAR safeguard the list of ARB them IDs as proof of being bonafide o CLOAs are issued upon land acquisition: so cancellation of title agricultural land. (Sec. 23)
beneficiaries of landowner can simultaneously go w/ issuance of CLOA.
 DARAB has jurisdiction to disqualify an ARB  In Association of small land owners, SC did not say “automatically” AWARD TO BENEFICIARIES
o SC said that title and ownership remain w/ LO until full  Ownership of the beneficiary shall be evidenced by a Certificate of
Land Ownership Award, which shall contain the restrictions and
payment of past conversation.
conditions provided for in the Act, and shall be recorded in the
Register of Deeds concerned and annotated on the Certificate of
LAND ACQUISITION AND REDISTRIBUTION CONFED vs. DAR
Title. (Sec. 24)
 Compulsory Acquisition
 Landlessness is acknowledged as the core problem in the rural  Notice of Acquisition
ISSUANCE OF CARP BENEFICIARY CERTIFICATE
areas and the root cause of peasant unrest.  First step: identification of the land, the landowners and the
 When certificate issued. – Section 24 of R.A. No. 6657 provides that
 In order to hasten the implementation of the program, the beneficiaries.
the rights and responsibilities of the beneficiary shall commence
Department of Agrarian Reform has made compulsory acquisition  Law is silent
from the time the DAR makes an award of the land to him, which
the priority mode of land acquisition. To the same end, the law  Administrative Order No. 12, Series of 1989 award shall be completed within 180 days from the time the DAR
provides for the steps in acquiring private lands through  Valid implementation , two notices takes actual possession of the land. Ownership of the lands by the
administrative instead of judicial proceedings. This procedure is  DAR A.O. No.12, Series of 1989, amended in 1990 by DAR A.O. No.9, beneficiary shall be evidenced by an Emancipation Patent (EP) or a
allowed provided the requirements of due process as to notice and Series of 1990 and in 1993 by DAR A.O No.1, Series of 1993 Certificate of Land Ownership Award (CLOA), which shall contain
hearing are complied with.
the restrictions, and conditions provided by law and which shall be
 Compulsory acquisition may be defined as the mandatory QUALIFIED BENEFICIARIES recorded in the Register of Deeds concerned and annotated on the
acquisition of agricultural lands including facilities and
Certificate of Title.
improvements necessary for agricultural production, as may be (1) The lands covered by the CARP shall be distributed as much as possible to  In several instances, however, the EP or CLOA cannot be
appropriate, for distribution to qualified beneficiaries upon landless residents of the same barangay, or in the absence thereof, landless immediately issued pending the fulfillment of certain legal and
payment of just compensation. residents of the same municipality in the following order of priority: administrative requirements. Examples of these are:
 The Notice of Coverage (NOC) commences the compulsory (a) agricultural lessees and share tenants; a. The Supreme Court ruling in the case of “Association of Small
acquisition of private agricultural lands coverable under the (b) regular farmworkers; Landowners in the Philippines, Inc. v. Secretary of Agrarian
Comprehensive Agrarian Reform Program (CARP). Along the (c) seasonal farmworkers; Reform” (G.R. No. 76742, 14,July 1989.) that title to all
various phases of the CARP proceedings, the process stalls because (d) other farmworkers; expropriated properties shall be transferred to the State only
of Land Owner (LO) resistance, most of whom invoke the ground of (e) actual tillers or occupants of public lands;
10 AGRARIAN 241 MIDTERM FILES BING’S
upon full payment of compensation to their respective Coordinating Committee (PARCCOM) shall, in turn, be given the due
landowners; notice thereof by the BARC.
b. The conduct of subdivision surveys to define the specific 2. If the land has not yet been fully paid by the beneficiary, the rights
parcel of land being awarded through the EP or CLOA. to the land may be transferred or conveyed, with prior approval of
 Thus, pending the fulfillment of the said requirements, the the DAR, to any heir of the beneficiary or to any other beneficiary
identified beneficiaries may already be in possession of the land but who, as a condition for such transfer or conveyance, shall cultivate
still have no EP or CLOA therefor. For this reason, the DAR shall the land himself.
first issue a CARP Beneficiary Certificate (CBC) to provide the
would-be beneficiaries, an intermediate document to evidence that NON-LAND TRANSFER SCHEMES
they have been identified and have qualified as agrarian reform 1. Leasehold Operations (LO)- lands within the land owners’ retained
beneficiaries under the CARP. Moreover, aside from attesting to the areas or lands not yet due for distribution are placed under
inchoate right of the identified beneficiary to be awarded the land leasehold to ensure farmers’ security over the land they till and pre-
or portion thereof, the CBC issued shall entitle the recipient to empt their displacement while waiting for the eventual distribution
receive support services under the CARP. of the land;
2. Production Profit Sharing (PPS)- This scheme is an interim measure
PAYMENT BY BENEFICIARIES while the lands owned or operated by agricultural entities await
1. Lands awarded pursuant to the Act shall be paid for by the coverage under the CARP. There entities are companies mostly
beneficiaries to the LBP in thirty (30) annual amortization at 6% involved in the commercial production of rubber, banana, and
interest per annum subject to the following rules: pineapple;
a. The payments for the first three (3) years after the award may 3. Stock Distribution Option (SDO). - Under this arrangement, the
be at reduced amounts as established by the PARC. farmers are entitled to dividends and other financial benefits and
b. The first five (5) annual payments may not be more than 5% of are also assured of at least a representatives at the Board of
the value of the annual gross production as established by the Directors, management or executive committee to protect the rights
DAR. and interest of shareholders; and
c. Should the scheduled annual payments after the fifth year 4. Commercial Farm Deferment (SFD). – This scheme provides
exceed 10% of the annual gross production and the failure to corporate landowners of newly-established commercial plantations
produce accordingly is not due to the beneficiary’s fault, the enough time to recover their investment before such agricultural
LBP may reduce the interest rate or reduce the principal lands are covered by CARP. The deferment period was up to 1998.
obligation to make the repayment affordable. Pending final land transfer, however, these corporations shall
2. The LBP shall have a lien (i.e., prior right) by way of mortgage on implement a production and profit-sharing scheme in their farms.
the land awarded to the beneficiary; and this mortgage may be The monitoring of non-land transfer activities by the field offices of
foreclosed by the LBP for non-payment of an aggregate of three(3) the DAR has not been given much priority,
annual amortization. The LBP shall advice the DAR of such As there has been greater pressure for them to deliver their land
proceedings and the latter shall subsequently award the forfeited acquisition and distribution (LAD) targets.
landholding to other qualified beneficiaries. A beneficiary whose
land has been foreclosed shall thereafter be permanently
disqualified from becoming a beneficiary under the Act. (Sec. 26.)

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
a period of ten (10) years. However, the children of the spouse of
the transferor shall have a right to repurchase the land from the
government or LBP within a period of two (2) years.
Due notice of the availability of the land shall be given by the LBP to
the Barangay Agrarian Reform Committee (BARC) of the barangay
where the land is situated. The Provincial Agrarian Reform

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