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AGRARIAN LAW
THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988
CHAPTER I: PRELIMINARY CHAPTER
Agrarian
- Means “relating to land or to the ownership of the land.”
- Derived from the Latin word “ager” which means “a field.”
Agrarian Law
- Distribution of public agricultural lands and large estates, as well as the regulation of the
relationship between the landowner and the farmer who works on the land.
- Embraces all laws that govern and regulate the rights and relationship over agricultural
lands between landowners, tenants, lessees, or agricultural workers.
- Presently, the focus is on AGRARIAN REFORM – the thrust of which is the redistribution of
agricultural lands.
Basic laws on Agrarian Reform:
1. Comprehensive Agrarian Reform Law of 1988, supplemented by the
2. Tenant Emancipation Law; and
3. the Code of Agrarian Reforms of the Philippines
Primary objective of the Agrarian Reform Program
- Breakup agricultural lands and
- Transform them into economic-size farms to be owned by the farmers themselves,
- With the end in view of uplifting their socio-economic status.
Where is Agrarian Reform founded?
- The right of farmers and regular farmworkers who are landless, to own directly or
collectively the lands they till or,
- In case of other farm workers, to receive a just share in the fruits thereof.
Social Legislation
- Emphasis is more on the aspect of public good and social welfare.

History of Philippine Agrarian Laws

Spanish Era
- The Civil Code – Special Provisions for Rural Leases, which governed the relationship
between landowners and tenants.
American Regime
- Philippine Rice Share Tenancy Act, which regulated the relationships between landlords
and tenants on rice lands.

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- Sugar Tenancy Act, which regulated the relationship between landlords and tenants on
lands planted to sugar cane.
Commonwealth Period
- Commonwealth Act No. 53, which recognized the testimony of the tenant as prima facie
evidence of the terms of a tenancy contract and that was not reduced in writing in a
language known to him.
- Commonwealth Act No. 178, amended the provisions of the Philippine Rice Share Tenancy
Act.
- Commonwealth Act No. 271, amended Sugar Tenancy Act by extending its application to
sugar farm workers.
- Commonwealth Act No. 461, provided security of tenure to agricultural tenants.
- Commonwealth Act No. 608, amended Commonwealth Act No. 461
After the grant of independence
- Republic Act No. 34, amended the Philippine Rice Share Tenancy Act by introducing changes
in crop division.
- Agricultural Tenancy Act of the Philippines, repealed all the earlier tenancy laws except the
Sugar Tenancy Act
- Republic Act No. 2263, amended Republic Act No. 34
- Land Reform Act of 1995, setting in motion the expropriation of all tenanted estates.
o Its scope was limited to the expropriation of private agricultural lands in excess of:
A. 300 hectares – held by natural person
B. 600 hectares – owned by corporations
- Agricultural Land Reform Code
➢ Abolished share tenancy
➢ Instituted the agricultural leasehold system in its place
- Code of Agrarian Reforms of the Philippines, amended the Agricultural Land Reform Code
After declaration of Martial Law
- Tenant Emancipation Law, provided for the transfer of lands primarily devoted to rice and
corn to the tenants
- Presidential Decree No. 946, reorganized the Court of Agrarian Relations.
- Presidential Decree No. 1038, strengthened the security of tenure of tenants in non-rice or
corn agricultural lands
- Presidential Decree Nos. 239, 251, 444, 882, 1039, and 1817, amended the Code of
Agrarian Reforms of the Philippines.
Under the Administration of President Corazon Aquino
- Executive Order No. 228, declaring full land ownership in favor of beneficiaries under PD
No. 27 (Tenant Emancipation Law)
- Proclamation No. 131, instituted a comprehensive agrarian reform program
- Comprehensive Agrarian Reform of 1988, covered all public and private agricultural lands.
- Republic Act Nos. 7881, 7905, 8532, and 9700, amended certain provisions of the
Comprehensive Agrarian Reform Law of 1988.

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LAWS IN RELATION TO EACH OTHER

Philippine Rice Share Tenancy Act → Commonwealth Act No. 178 → Republic Act No. 34 XXXX
Republic Act No. 2263 → Land Reform Code → Code of Agrarian Reforms of the Philippines →
Presidential Decrees Nos. 239, 251, 444, 882, 1039, and 1817
Sugar Tenancy Act → Commonwealth Act No. 271
Commonwealth Act No. 461 → Commonwealth Act No. 608
Agricultural Tenancy Act of the Philippines → REPEALED ALL TENANCY LAWS EXCEPT SUGAR
TENANCY ACT
Tenant Emancipation Law + Executive Order No. 228
Comprehensive Agrarian Reform of 1998 → Republic Act Nos. 7881, 7905, 8532, and 9700
(LEGENDS: → = Amended; + = Supplemented; XXXX = Repealed)

Agrarian Reform
- Means redistribution of lands, regardless of crops or fruits produced to farmers and regular
farmworkers who are landless, irrespective of tenurial arrangement, to include the totality
of factors and support services designed to lift the economic status of the beneficiaries.
- Includes all other alternative modes to the redistribution of lands such as:
➢ Labor administration
➢ Profit-sharing
➢ Stock distribution
- Perceived solution to social instability.
Comprehensive Agrarian Reform Law of 1988
- Enacted pursuant to the policy of the State to pursue a Comprehensive Agrarian Reform
Program.
- Embodies the state policy of processing the program aimed at liberating the vast potential
wealth of Philippine agriculture by giving the majority of Filipinos a real and rightful stake in the
land.
Comprehensive Agrarian Reform Program
- A social justice and poverty alleviation program which seeks to empower the lives of agrarian
reform beneficiaries through equitable distribution and ownership of the land based on the
principle of land to the tiller.
- Provides opportunities for a dignified and improved quality of life of the agrarian reform
beneficiaries through the provision of adequate support services for sound rural development
and the establishment of economic-size farms as the basis of Philippine Agriculture.
- Gives highest consideration to the welfare of the landless farmers and farmworkers.
Agricultural Land
- Land devoted to agricultural activity and not classified as mineral, forest, residential,
commercial, or industrial land.

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- Consists of lands:
a. Devoted to agricultural activity
b. Not classified as mineral or forest
c. Prior to June 15, 1988, not classified for residential, commercial, or industrial use under
a local government town plan and zoning ordinance, as approved by the Housing and
Land Use Regulatory Board (or its predecessors, the National Coordinating Council and
the Human Settlements Regulatory Commission).
Primary Objective of Agrarian Reform
- Break up agricultural lands and transform them into economic-size farms to be owned by the
farmers themselves, with the end in view of uplifting their socio-economic status.
- Means towards a viable livelihood and, ultimately, a decent life for the landless farmers.
- Does not guarantee improvement in the lives of the agrarian reform beneficiaries; it merely
provides for a possibility or a favorable chance of uplifting economic status of the agrarian
reform beneficiaries, which may or may not be attained.
Owner-cultivatorship
- State of a person who not only provides capital and management, but also personally cultivates
his own land with the aid of his immediate family and household.
Economic Family-Size Farm
- Area of farm land that permits efficient use of labor and capital resources of the farm family and
- Will produce an income sufficient to provide a modest standard of living to meet a farm family’s
needs:
1. for food, clothing, shelter, and education;
2. With possible allowance for payment of yearly installments on the land; and
3. Reasonable reserves to absorb yearly fluctuations in income.
Social Function of Land
- Land has a social function and land ownership has a social responsibility.
- Agricultural landowners have the obligation to cultivate directly or through labor administration
the lands they own and thereby make the land productive.
- The use and ownership of property bears a social function, and all economic agents are
expected to contribute to the common good.
- To this end, property ownership and economic activity are always subject to the duty of the
State to promote distributive justice and intervene when the common good requires.
Agriculture, Agricultural Enterprise, or Agricultural Activities
- Cultivation of the soil,
- planting of crops,
- growing of fruit trees, including the harvesting of such farm products,
- other farm activities and practices performed by a farmer in conjunction with such farming
operations done by persons, whether natural or juridical.
Lands devoted to Raising Livestock, Poultry, and Swine (Luz Farms vs DAR)
- are classified as industrial, hence, exempt from the agrarian reform program.
- No land is tilled and no crop is harvested. Land is not the primary resource.

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- Hence, they are not “fruits of the land”.

CHAPTER II: COVERAGE

Lands Covered
As a general rule,
a. All public and private agricultural lands; and
b. Other lands of the public domain
(Includes farm lot subdivision)
Lands Not Covered
1. Private lands:
a. With a total area of five hectares and below; or
b. Actually, directly and exclusively used for prawn farms and fishponds
2. Lands actually, directly and exclusively used for parks, wildlife, forest reserves,
reforestation, fish sanctuaries and breeding grounds, watersheds and mangroves;
3. Lands actually, directly and exclusively used and found to be necessary for:
a. National defense;
b. School sites and campuses;
c. Experimental farm stations operated for educational purposes;
d. Seeds and seedling research and pilot production centers;
e. Church sites and convents appurtenant thereto;
f. Mosque sites and Islamic centers appurtenant thereto;
g. Communal burial grounds and cemeteries;
h. Penal colonies and penal farms actually worked by the inmates; and
i. Research and quarantine centers;
4. All lands with 18% slope and over, except those already developed;
5. Certain lands covered by homestead patents;
6. Ancestral lands; and
7. Land devoted to the raising of livestock, poultry and swine.
Republic Act No. 9700 in 2009
- Amend the Comprehensive Agrarian Reform Law of 1988 to institute reforms for strengthening
and accelerating agrarian reform program implementation.
- Extended and limited the implementation of the Comprehensive Agrarian Reform Law of 1988,
particularly the issuance and service of a notice of coverage to the landowner, up to June 30,
2014.
- Proceedings pending as of June 30, 2014 can be concluded beyond such date. The authority of
the Department of Agrarian Reform to conclude such proceedings includes the authority of the
said department to continue exercising its quasi-judicial powers with respect to any agrarian
reform matter or controversy that may arise thereto.
Implementation
- Even if land acquisition and distribution are completed, agrarian reform program
implementation will continue, as yearly appropriations shall be allocated to support services,

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agrarian justice delivery, and operational requirements of government agencies mandated to

implement the program.
Retention Right of Landowner
- Right to retain shall not be more than 5 hectares of his landholdings.
- Landowner should apply for retention,
a. Otherwise, the Department of Agrarian Reform will not have the authority to
decree a retention.
- Retained area need not be personally cultivated by the landowner – cultivation can be done
indirectly through labor administration.
- The heirs, upon proving the decedent landowner had manifested – during his lifetime and
before August 23, 1990 – his intention his right of retention may exercise the right instead.
Constitutional Basis for Landowner Retention Rights
- The 1987 Constitution expressly recognizes landowner retention rights as provided in Section 4,
Article XIII, which states that the State shall encourage and undertake the just distribution of all
agricultural lands, subject to such priorities and reasonable retention limits as the Congress may
prescribe.
Rationale for the Grant of Retention Rights Under Agrarian Reform Laws
- Serves to mitigate the effects of compulsory land acquisition by balancing the rights of the
landowner and the tenant and
- By implementing the doctrine that social justice was not meant to perpetrate an injustice
against the landowner.
When to Exercise Retention Right
- Anytime before the receipt of the notice of coverage
- Upon receipt of the notice of coverage in cases of compulsory acquisition, the landowner shall
exercise his right of retention by signifying his intent to retain within 60 days from receipt of said
notice.
- In cases of voluntary offer to sell or voluntary land transfer/direct payment, simultaneously at
the time of offer for sale or transfer.
Right to Choose Retention Area
The landowner’s choice of area to be retained shall prevail as long as:
- The area is compact and contiguous
- least prejudicial to the entire landholding and the majority of the farmers therein.
Right of Retention of Spouses
- If conjugal or absolute community – 5 hectares only
- If separation of property – 5 hectares each
Right of Retention over the Land covered by an Emancipation Patent or Certificate of Land Ownership
Award
- May be exercised by filing a petition for cancellation of the Emancipation Patent or Certificate of
Land Ownership Award that may have been issued to the tenants.

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Waiver of Retention Right

1. Failure to:
a. Manifest an intention to exercise right to retain:
i. Within 60 calendar days from receipt of notice of coverage; or
ii. Upon filing an application for Voluntary Land Transfer/Direct Payment Scheme
or Voluntary Offer to Sell; or
b. State such intention upon offer to sell or application under the Voluntary Land
Transfer/Direct Payment Scheme or Voluntary Offer to Sell; or
2. Execution of:
a. Any document stating that he expressly waives his right to retain;
b. A “Landowner Tenant Production Agreement and Farmer’s Undertaking” or “Application
to Purchase and Farmer’s Undertaking” covering subject property; or
c. Any document indicating that he is consenting to the Comprehensive Agrarian Reform
Program coverage of his entire landholding; or
3. Performance of any act constituting estoppel by laches, warranting a presumption that he
abandoned his right or declined to assert it.
Effect of Sale of Agricultural Land on Landowner’s Retention Right
- If more than the statutory limitation of 5 hectares - the sale of the first 5 hectares of agricultural
land is treated as valid.
1. The sale should also be treated as an exercise of his retention rights.
Validity of Sale of Agricultural Land Before Effectivity of the Comprehensive Agrarian Law of 1988
- Any sale, disposition, management contract or transfer of possession of private lands executed
by the original landowner prior to June 15, 1988 – valid if registered with the proper Register of
Deeds within three months after such date.
Criminal Violations (Prohibitions)
1. Persons owning or possessing agricultural lands in excess of the total retention limits for
the purpose of circumventing the provisions of law: and
2. Responsible government officers from unjustifiably, willfully, and maliciously depriving a
landowner of his retention rights.
3. Forcible entry or illegal detainer by persons who are not qualified beneficiaries under
the law, if done to avail of the rights and benefits of the agrarian reform program.
4. Responsible government officers from unjustifiably, willfully, and maliciously denying
any notice to landowners.
5. Responsible government officers from performing any unjustified, willful, and malicious
act that constitutes undue delay, refusal or failure to pay the landowner his just
compensation.
6. Persons from owning or possessing agricultural lands in excess of the total retention
limits or award ceilings for the purpose of circumventing the provisions of law.
7. Beneficiaries from selling, transferring, or conveying his right to use or any other
usufructuary right over the land he acquired by virtue of being a beneficiary if done to
circumvent law.

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Chosen Area is Tenanted

- Tenant may choose on whether to remain therein or be a beneficiary in the same or another
agricultural land with similar or comparable features – this option must be exercised by the
tenant within 1 year from the time the landowner manifests his choice.
Concept of Tenancy Relationship
- Tenancy Relationship – is a juridical tie which arises between a landowner and a tenant once
they agree, expressly or impliedly, to undertake jointly the cultivation of a land belonging to the
landowner.
- Results to the tenant acquiring right to continue working on and cultivating the land.
- Landowner – owner, lessee, usufructuary or legal possessor of the land.
- Landlord-tenant must exist.
- It cannot be presumed and a claim of tenancy does not automatically give rise to a person’s
security of tenure.
- Determined by the following indispensable elements:
1. The parties are the landowner and the tenant or agricultural lessee;
2. The subject matter of the relationship is an agricultural land;
3. There is consent between the parties to the relationship;
4. The purpose of the relationship is to bring about agricultural production;
5. There is personal cultivation (consistently tilling the land) on the part of the tenant or
agricultural lessee; and
6. The harvest is shared between landowner and tenant or agricultural lessee.
- Unless an individual has established one’s status as a de jure tenant, he is not entitled to
security of tenure guaranteed by the agricultural tenancy laws.
Certifications Declaring Existence of Tenancy Relation
- Certifications of administrative agencies and officers declaring the existence of a tenancy
relation are merely provisional, persuasive but not binding on the courts, which must make
their own findings.
Effect if the Tenant Chooses to Remain in the Retained Area
- He will no longer be considered as a tenant, but as an agricultural lessee.
- He shall be disqualified as an agrarian reform beneficiary.
- (Discussion of agricultural lessee will be tackled again in CARP)
Effect if the Tenant Chooses to Be a Beneficiary
- Loses his right to be a lessee of the land retained by the landowner.
Children of the Landowner
- If the landowner owns more than 5 hectares of agricultural land, the excess area may be
awarded to the children of the landowner.
- Each child can receive up to three hectares if he or she is:
1. A Filipino citizen
2. At least 15 years old; and
3. Actually tilling the land or directly managing the farm.

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- A qualified child who owns less than 5 hectares of agricultural lands is still entitled to an award
of his parent’s landholding provided that his total area, including the area to be awarded does
not exceed the 5-hectare ownership ceiling.
Lands awarded to qualified children of landowners cannot be sold, transferred or conveyed for a
period of 10 years, except:
1. Through hereditary succession;
2. To the government;
3. To the Land Bank of the Philippines, with a right of repurchase within 2 years from the
date of transfer; or
4. To other qualified beneficiaries
Reason for 10 year limit- presumes that the beneficiary has already served the purpose of CARP which
is to improve his economic status.
Right of Homesteaders Vis-à-vis Right of Tenants
- Both the Constitution and the Comprehensive Agrarian Reform Law of 1988 respect the
authority of the rights of homesteaders over the right of tenants.
- The Homestead Act was enacted for the welfare and protection of the poor.
- The owners (or their direct compulsory heirs) of lands acquired through homestead grants of
Free Patents under the Commonwealth Act No. 141 are entitled to retain the entire area (even if
it exceeds five hectares), provided that:
1. They are the owners of the original homestead at the time of the approval of the
Comprehensive Agrarian Reform Law of 1988; and
2. They continue to cultivate the same.
Expropriation of Private Agricultural Lands by the Government Units
- The Department of Agrarian Reform should first subject it to agrarian reform program.
- The land should first be acquired by the national government through the Department of
Agrarian Reform who will pay just compensation to the landowner.
- Thereafter, DAR will distribute the land to the agrarian reform beneficiaries.
- After distribution, the local government unit will expropriate the land and pay the agrarian
reform beneficiaries the just compensation.
The Import of the Provision on Land Size Review
- Implied recognition that the uniform setting of a 5-hectare limit for all agricultural landholding
may not be feasible, considering the economic differences for each type of agricultural product.
- Surely, lands planted to rice, corn, coconut, mango, sugar, pineapple, cacao, etc., cannot be
treated identically.
Acquisition and Distribution Scheme
- All remaining lands during the five-year extension period up to June 30, 2014.
- Priority order:
1. Lands with an area of more than 50 hectares, to be completed by June 30, 2012,
specifically:
a. Those which have already been subjected to a Notice o Coverage on or before
December 10, 2008;

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b. Rice and corn lands;

c. Idle or abandoned lands;
d. Private lands voluntarily offered by the owners for agrarian reform;
e. Lands foreclosed by the government financial institutions;
f. Lands acquired by the Presidential Commission on Good Government; and
g. Other lands owned by the government devoted to or suitable for agriculture.
2. Lands with an area of 24 hectares up to 50 hectares, to be completed by June 30, 2012,
specifically:
a. Alienable and disposable public agricultural lands;
b. Arable public agricultural lands under agro-forest, pasture and agricultural
leases already cultivated and planted to crops in accordance with Sec. 6, Article
XIII of the Constitution;
c. Public agricultural lands which are to be opened for new development and
resettlement; and
d. Private agricultural lands which have already been subjected to a Notice of
Coverage issued on or before December 10, 2008.
3. Remaining private agricultural lands of 24 hectares up to 50 hectares, whether they
have been subjected to notices of coverage or not, to be completed by June 30, 2013;
4. Lands with an area of more than 10 hectares up to 24 hectares, to be completed by June
30, 2013; and
5. Lands from the retention limit up to 10 hectares, to be completed by June 30, 2014.
- Qualified beneficiaries
➢ Farmers (tenants or lessees) and regular farmworkers actually tilling the lands, as
certified under oath by the Barangay Agrarian Reform Council and attested under oath
by the landowners.
➢ Shall state under oath before the judge of the city of municipal court that he/she is
willing to work on the land to make it productive and to assume the obligation of paying
the amortization for the compensation of the land and the land taxes thereon.
Government-owned Lands
- Those devoted to or suitable for agriculture and owned by the departments, bureaus, offices,
and instrumentalities of the Government, such as:
1. Those foreclosed by government financial institutions, like GSIS;
2. Those acquired by the Presidential Commission on Good Government; or
3. Other lands owned by the government devoted to or suitable for agriculture.
- Covered under the CARL if these are no longer:
1. Directly and immediately occupied, utilized and applied for the designated purposes; or
2. Indispensable for attaining the mandate of the concerned departments, bureaus, offices
and instrumentalities of the government.
Idle or Abandoned Land
- Any agricultural land not cultivated, tilled or developed to produce any crop nor devoted to any
specific economic purpose continuously for a period of three years immediately prior to the
receipt of notice of acquisition by the government.
- Does not include:
1. those that become permanently or regularly devoted to non-agricultural purposes;

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2. Has become unproductive by reason of force majeure or any other fortuitous event,
provided that prior to such event, such land was previously used for agricultural or other
economic purposes.

Agricultural Land Possessed by Multinational Corporations

- Agricultural lands, leased, held or possessed by multinational corporations are also subject to
compulsory acquisition and distribution.
- Land shall be distributed directly to the individual worker-beneficiaries.
- If it is not economically feasible and sound to divide the land, the individual worker-beneficiaries
shall form a worker’s cooperative or association which will deal with the corporation by way of
lease or grower’s agreement and other legitimate purposes.
Ancestral Land
- Lands of the public domain that have been in open, continuous, exclusive and notorious
occupation and cultivation by members of the National Cultural Communities by themselves or
through their ancestors, under a bona fide claim of acquisition of ownership according to their
customs and traditions for a period of at least 30 years before the date of approval of
Presidential Decree No. 410.
- Lands occupied, possessed and utilized by individuals, families and clans who are members of
the indigenous peoples since time immemorial, by themselves or through their predecessors-in-
interest, under claims of individual or traditional group ownership, continuously, to the present
except when interrupted by war, force majeure or displacement by force, deceit, stealth, or as a
consequence of government projects and other voluntary dealings entered int by government
and private individuals/corporations, including, but not limited to, residential lots, rice terraces
or paddies, private forests, swidden farms, and tree lots.
- Exempted from the coverage of the agrarian reform program.
- The CARL of 1988 recognizes and respects the systems of land ownership, land use, and the
modes of setting land disputes of all indigenous cultural communities or indigenous peoples, in
line with the principles of self-determination.
An Exclusive List
- The Court will not curtail nor add to the latter by implication, and it is a rule that an express
exception excludes all others.
Land Classification in the Tax Declaration Not Conclusive
- Tax declarations are not the sole basis of land classification. Thus, even if tax declaration
classifies the land as agricultural, such classification is not irrefutable.
Land Classified as Non-Agricultural Prior to the Effectivity of the Comprehensive Agrarian Reform Law
of 1988
- Are outside the coverage of the law.
- All that is needed is one valid reclassification of the land from agricultural to non-agricultural by
a duly-authorized government agency before June 15, 1988.

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- Regarding residential land reclassifications, a zoning ordinance, duly issued by the local
government and approved by the HLURB serves as conclusive proof of the land’s classification as
residential.
Lands with at least 18% Slope
- To be exempted:
1. Land must have a gradation slope of 18% or more; and
2. Must be undeveloped
- Reason: prevent adverse effects on the lowlands and streams resulting from soil erosion.
- Considered as permanent forest or forest reserves, regardless of the condition of vegetative
cover, occupancy, or use of any kind, and therefore, NOT ALIENABLE OR DISPOSABLE.
- If previously classified as alienable or disposable, but not yet titled – reverted to the category of
public forest.
- If land has been covered by an approved public land application, or occupied openly,
continuously, adversely and publicly for a period of not less than 30 years as of the effectivity of
the Forestry Reform Code – remain as such alienable or disposable,
• On condition that the land is kept in a vegetative state sufficient to prevent erosion and
adverse effect on the lowlands and streams.
School Sites and Campuses
- Lands, actually, directly and exclusively used and found necessary for school sites and campuses
are exempted.
- School is in the best position to determine whether the land is necessary for use as school site or
campuses; Department of Agrarian Reform has no right to substitute its judgement or
discretion.
Commercial Farms
- Are lands devoted to:
1. Saltbeds;
2. Fruit farms;
3. Orchards;
4. Vegetable and cut-flower farms; and
5. Cacao, coffee and rubber plantations
Implementation Deferred on Commercial Farms
- Compulsory acquisition and distribution of commercial farms has been deferred for 10 years:

1. from the effectivity of Comprehensive Agrarian Reform Law of 1988 (i.e., June 15, 1988)
- for farms already existing when the law took effect; and
2. from the first year of commercial production and operation - for new farms.

Manner of Distribution of Commercial Farms

- Commercial farms may be distributed individually or collectively.
- Individual beneficiaries are entitled to three hectares each or a minimum of one hectare each, if
the land is not sufficient to accommodate them.
- Order of priority in the distribution:

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1. Agricultural lessees and share tenants;

2. Regular farm workers;
3. Seasonal farm workers;
4. Other farm workers;
5. Actual tillers or occupants of public lands;
6. Collectives or cooperatives of the above beneficiaries; and
7. Others directly working on the land.
- Not economically feasible to divide the land - the beneficiaries will be obliged to form a
workers cooperative or association.
- Infrastructure facilities and improvements which are necessary and beneficial to the operations
of the farm, including buildings, roads, machinery, receptacles, instruments or implements
permanently attached to the land may be subject to acquisition, as determined by the
Department of Agrarian Reform upon the recommendation of the agrarian reform beneficiaries.

Regular Farmworker
- Natural person employed on a permanent basis by an agricultural enterprise or farm.

Seasonal Farmworker
- Natural person employed on a recurrent, periodic or intermittent basis, whether as a
permanent or a non-permanent laborer, such as “dumaan”, “sacada”, and the like.

Other Farmworkers
- Those who do not fall under the concepts of farmworkers, regular farmworkers, and
seasonal farmworkers.

Cooperatives
- Refer to organizations composed primarily of small agricultural producers, farmers,
farmworkers, or other agrarian reform, beneficiaries who voluntarily organize
themselves for the purpose of pooling land, human, technological, financial or other
economic resources
- Operated on the principle of one member, one vote.
- A juridical person may be a member, with the same rights and duties as a natural
person.

Qualifications of Commercial Farm Beneficiaries

1. 18 years old at the time of the filing of the application as beneficiary;
2. Have the willingness, aptitude and ability to cultivate and make the land productive; and

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3. Have been employed in the commercial farm between June 15, 1988 and June 15, 1998
or upon the expiration of the deferment.
- Farm workers who have worked the longest on the land continuously will be given
priority.

Who are Disqualified to Become a Commercial Farm Beneficiary

1. Farm workers who have:
a. Retired from service, whether optional or compulsory;
b. Resigned from their employment with the farm; or
c. Been dismissed for cause; or
2. Farm workers, lessees or tenants who:
a. Waive or refuse to be a beneficiary; and
b. Have committed a violation of agrarian reform laws and regulations.

Freedom of Beneficiaries to Choose the Type of Agribusiness

- Have full freedom to:
1. Choose the type of agribusiness venture arrangement that will maintain the
economic viability of the farm;
2. Market their products or enter into marketing arrangements; and
3. Avail of the services or assistance of individuals, associations or non-government
organizations in negotiating for the most advantageous agribusiness venture
arrangement, enterprise development, and capability building.

Types of Agribusiness Venture Arrangements

1. Joint Venture Agreement – a company is organized and co-owned by an investor and
the agrarian reform beneficiaries through their cooperative association.
- The investor may provide the management and marketing skills, technology
infrastructure and capital,
- While he contribution or participation of the agrarian reform beneficiaries
includes labor, usufructuary rights to the land, and capital infusion, if available.
2. Lease Agreement- a scheme whereby the agrarian reform beneficiaries through their
cooperative or association, enter into a contract of lease with the landowner or
investor.
- The lessee controls the farm operations within an agreed period of time not
exceeding 10 years, extendible agreement.
3. Contract Growing/Growership Agreement – arrangement whereby the agrarian reform
beneficiaries or their cooperative produce certain crops for an investor or agribusiness
firm which buys the produce at pre-arranged terms;

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4. Management Contract – the agrarian beneficiaries or their cooperative/association hire

the services of the landowner or investor to manage and operate the farm in exchange
for fixed wages or commission.
5. Build-Operate-Transfer Scheme – the project proponent undertakes the financing and
construction of a given infrastructure facility and the operation and maintenance
thereof for an agreed period of time not exceeding 25 years, subject to extension.

Right of Retention over Commercial Farms

- Owners of commercial farms, whether individual or corporate, are also entitled
to the retention rights.

CHAPTER III: IMPROVEMENT OF TENURIAL AND LABOR RELATIONS

Power of the Department of Agrarian Reform to Fix Rentals

- In order to protect the economic statis of the farmer, the Department of
Agrarian Reform is empowered to determine and fix the lease rental, when the
tenant chose to remain in the portion retained by the landowner.
- The Department of Agrarian Reform has fixed the rentals in this wise:
1. For lands devoted to rice and other crops – 25% of the average
normal harvest after deducting the amount used for seeds and the
cost of harvesting, or threshing.
▪ If there has been no normal harvests, then the estimated normal
harvest during the three agricultural years immediately preceding
the date of the leasehold.
2. For sugar cane lands – 25% of average normal harvest less the value
of the cost of seeds/cane points, harvesting (cutting), loading,
hauling, and/or trucking fee, and cost of processing; and
3. For coconut lands – 25% of the average normal harvest for a specific
area for the proceeding three calendar years less the value of
production cost.

Applicability of the Provision on Production-Sharing Plans

- Obligation to establish a production-sharing plan applies only to:
1. Farms:
a. Operating under a production venture, lease, management contract or
other similar arrangement; or
b. Leased or operated by multinational corporations;

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2. Commercial Farms, i.e. those devoted to saltbeds, fruit farms, orchards,

vegetable and cut flower farms, cacao, coffee or rubber plantations.

CHAPTER IV: REGISTRATION

Sworn Statement
- its purpose is to help the Department of Agrarian Reform identify the lands and their
owners for effective implementation of the agrarian reform program.
-
Purpose of the Provision on Beneficiary Registration
- develop a databank of potential and qualified beneficiaries for the effective
implementation of the agrarian reform program.

CHAPTER V: LAND ACQUISITION

Modes of Acquisition
- CARL 1988 prescribes the following modes by which landowners may be divested of
their ownership to agricultural land:
1. Compulsory acquisition by the State;
2. Landowners’ voluntary offer to sell their agricultural land to the State;
3. Landowners’ voluntary transfer of their agricultural land to qualified
beneficiaries;
4. Corporations’ or associations’ voluntary distribution of their capital stock,
equity or participation to their workers or other qualifies beneficiaries.
- With respect to voluntary land transfer, only those submitted by June 30, 2009 shall be
allowed.

Compulsory Acquisition
- mode of land acquisition whereby the government acquires private agricultural lands.

Compulsory Acquisition Process

1. identification by the Department of Agrarian Reform Program of the land,
landowner and beneficiary. This includes the requirement of sending a notice to
the landowner subjecting his land to coverage.

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2. Notice by the Department of Agrarian Reform to the landowner about the

compulsory acquisition and the price offer, through the following means:
a. Personal notice or by registered mail; and
b. Posting of the notice in a conspicuous place in the barangay hall and
municipal hall where the land is located;
3. Reply by the landowner about his acceptance or rejection of the offered price
within 30 days from the date of receipt of the notice;
a. If the landowner accepts the offered price – the Land Bank of the
Philippines will pay the landowner within 30 days from execution and
delivery of Deed of Transfer.
b. If the land owner rejects the offer – the Department of Agrarian Reform
will determine the just compensation through summary administrative
proceedings; or
c. If the landowner disagrees with the decision of the Department of
Agrarian Reform, he may bring the matter to the regular courts of justice
for final determination of just compensation.
4. Taking of immediate possession of the land by the Department of Agrarian
Reform:
a. If the landowner received the corresponding payment; or
b. If the landowner does not respond to the Notice of Acquisition;
5. Request by the Department of Agrarian Reform to the Register of Deeds to issue
a Transfer Certificate of Title to the Republic of the Philippines; and
6. Distribution of the land to the qualifies beneficiaries.

Identification of Land, Landowners, and Beneficiaries

- the law is silent on how the identification process shall be made.
- To fill this gap, the Department of Agrarian Reform has issued an administrative order
setting forth, among others, the acquisition and distribution process of the
Comprehensive Agrarian Reform Program.
- The procedure is essentially as follows:
1. Provincial Office of the Department of the Agrarian Reform generates:
a. A list of landholdings grouped according to the prioritized phasing under
the CARL of 1988 and relevant regulations. This list is provided to the
Municipal Office of the Department of Agrarian Reform; and
b. A list of the lands for which notices of coverage had already been issued
and served. Such list is provided to the Municipal Agrarian Reform
Officer;

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2. Municipal Agrarian Reform Officer together with the Barangay Agrarian Reform
Committee:
a. Prepares a preliminary list of potential qualified Agrarian Reform
Beneficiaries of the subject landholdings, clearly stating the beneficiaries’
qualification as a lessee, tenant, regular farmworker, seasonal
farmworker, other farmworker, actual tiller or occupant of public land, or
others directly working on the land;
b. Screens and selects qualified beneficiaries and thereafter includes
qualifies beneficiaries in a master list;
3. Municipal Agrarian Reform Officer continues with the process of land acquisition
and distribution, in which the landowner is issued a notice of coverage on his
land and afforded an opportunity to exercise the right of retention.
4. Provincial Agrarian Reform Officer then conducts land surveys, after which the
Municipal Agrarian Reform Officer, Barangay Agrarian Reform Committee
member, and Land Bank of the Philippines representative conduct field
investigations to complete the valuation of the land, among others; and
5. Land Bank of the Philippines thereafter determines the initial valuation of the
covered landholding.
- The Provincial Agrarian Reform Officer issues a Notice of Land Valuation and Acquisition,
transmits the same to the Municipal Agrarian Reform Officer, and directs the latter to
serve the notice to the landowner.

Most Required for Validity of Implementation

- Two notices to the landowner are required:
1. Notice of Coverage; and
2. Notice of Acquisition
- The importance of the first notice – designed to comply with the requirements of
administrative due process.

Land Acquisition Procedure Should be Strictly Construed

- The land acquisition under the agrarian reform law is an extraordinary method of
expropriation.
- The failure of the Department of Agrarian Reform or any of its agencies to comply with
the proper procedure of expropriation – treated as violation of constitutional due
process and should be deemed arbitrary, capricious, whimsical and tainted with grave
abuse of discretion.

When Title or Ownership of the Land Is Transferred to the State

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- Until the just compensation is finally determined and fully paid, the title and ownership
remain with the landowner.
- The mere fact that the Department of Agrarian Reform has deposited the offered price
does not warrant the cancellation of the owner’s title.

Opening of Trust Account Does Not Constitute Payment

- the law requires just compensation to be paid in cash and Land Bank of the Philippines
bonds and not by trust account.

CHAPTER VI: JUST COMPENSATION

Concept of Just Compensation
- defined as “the full and fair equivalent of the property taken from its owner by the
expropriator.”
- Measure – the owner’s loss, not the taker’s gain.
- The word “just” is used to intensify the meaning of the word “compensation” to convey
the idea that the equivalent to be rendered for the property to be taken shall be real,
substantial, full, and ample.
- Embraces not only the correct determination of the amount to be paid to the
landowner, but also “prompt payment” -
o No prompt payment when reimbursement is conditioned upon Land Bank of the
Philippines and the release of the amount is made to depend upon compliance
with some documentary requirements.
o Does not only contemplate the immediate deposit and release of the provisional
compensation – it also encompasses the full payment of the finally adjudged just
compensation.
o Without prompt payment, compensation cannot be considered “just” because
the landowner is made to suffer the consequence of being immediately deprived
of his land while being made to wait for some time before actually receiving the
amount necessary to cope with his loss.

Just Compensation in the Various Agrarian Reform Laws

− Determining factors of just compensation under the Land Reform Act of 1995:
1. Prevailing prices of similar lands in the immediate area;
2. Condition of the soil, topography, and climate hazards;
3. Actual production;
4. Accessibility; and
5. Improvements

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- Agricultural Land Reform Code – based on annual lease rental income, in addition to the
other factors that may be considered.
- Tenant Emancipation Law – fixed production-based mathematical formula of land value
at 2 ½ times the average of three normal crop years.
- Executive Order No. 228 – average gross production multiplied by 2.5, the product of
which was, in turn, multiplied by the Government Support Price of cavan of palay or
corn.

Determining Just Compensation under the Comprehensive Agrarian Reform Law of 1998
1. Land’s:
a. Acquisition cost;
b. Nature
c. Actual use; and
d. Income
2. Standing crop value;
3. Current value of like properties;
4. Owner’s sworn valuation;
5. Tax declarations;
6. Government assessment;
7. Bureau of Internal Revenue’s zonal valuation;
8. Social and economic benefits contributed by the farmers and the farmworkers
and by the Government to the property; and
9. Nonpayment of taxes or loans secured from any government financing
institution on the said land.

Land Valuation Factors

1. Capitalized Net Income (CNI) which is based on land use and productivity;
2. Comparable Sales (CS) which is based on 70% of the Bureau of Internal Revenue zonal
value:
3. Market Value (MV) which is based on the Tax Declaration

Basic Formula When All Factors Are Present

(CNI x 0.60) + (CS x 0.30) + (MV x 0.10) = Land Value

Formula Comparable Sales Factor is Not Present

(CNI x 0.90) + (MV x 0.10) = Land Value

Formula When Capitalized Net Income Factor is Not Present

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(CS x 0.90) + (MV x .10) = Land Value

The Formula When Comparable Sales and Capitalized Net Income Factors are Not Present
MV x 2 = Land Value

Reckoning Valuation
- The value of the property at the time it was taken from the owner and appropriated
shall be the basis.
- Time of taking – landowner was deprived of the use and benefit of his property, such as
when title is transferred to the Republic of the Philippines or to the name of the
beneficiaries.
- Taking – occurs when agricultural lands are voluntarily offered by a landowner and
approved by Presidential Agrarian Reform Council for Comprehensive Agrarian Reform
coverage through the stock distribution.
- NOTE: it would be highly inequitable on the part of the petitioners to compute the just
compensation using the values at the time of the taking in 1972, and not at the time of
the payment, considering that the government and the farmer-beneficiaries have
already benefited from the land although the ownership thereof have not yet been
transferred in their names…Transfer of possession and ownership of the land to the
government are conditioned upon the receipt by the landowner of the corresponding
payment or deposit (Lubrica v. Land Bank of the Philippines).
- R.A. No. 6657 is the applicable law, with P.D. No. 27 and E.O. No. 228 having only
suppletory effect.

Procedure for Determination of Just Compensation

- Under the CARL of 1988, it commences with the Land Bank of the Philippines
determining the value of the land.
- Using the Land Bank of the Philippines valuation, the Department of Agrarian Reform
makes an offer to the landowner.
- Landowner rejects the offer – DAR, through the DARAB, conducts a summary
administrative proceeding to determine the compensation for the land by requiring the
landowner, the Land Bank of the Philippines, Department of Agrarian Reform officers,
beneficiaries and other interested parties to submit evidence as to the just
compensation.
- A party who disagrees with the decision of the adjudicator may bring the matter to the
Regional Trial Court designated as a Special Agrarian Court for final determination of
just compensation.

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Role of the Department of Agrarian Reform Adjudication Board

- Conduct a summary administrative proceeding for the preliminary determination of just
compensation in order to determine whether land valuation computations of the Land
Bank of the Philippines are in accordance with the rules or administrative orders.
- Conducted by:
1. Provincial Agrarian Reform Adjudicators – initial land valuation of the Land Bank
of the Philippines is less than Php 10,000,000;
2. Regional Agrarian Reform Adjudicators – if Php 10,000,000.00 – Php 50,000,000;
and
3. Department of Agrarian Reform Adjudication Board – if above Php
50,000,000.00.
- In the non-availability, inhibition or disqualification of a designated Provincial Agrarian
Reform Adjudicators in the locality – Regional Agrarian Reform Adjudicators concerned
may conduct preliminary proceedings, and so to DARAB if RARA is unavailable.

The Valuation Set by the Department of Agrarian Reform Not Conclusive

- Landowner can still contest the same in the proper court.
- Regional Trial Court sitting as a Special Agrarian Court = FINAL determination.

Prescribed Factors and Formula Considered by the Court in Determining Just Compensation
- (as stated above)
- If in the exercise of their juridical discretion, the courts find that the strict application of
said formula is not warranted under the specific circumstances of the case before them,
they may deviate or depart therefrom, provided that this departure or deviation is
supported by a reasoned explanation grounded on the evidence on record. Absent this,
deviation will be considered as abuse grave of discretion.

Effect of Delaying Payment of Just Compensation to the Landowner

- Landowner may be granted an additional annual interest in the computed just
compensation as penalty imposed for damages incurred by the landowner due to the
delay in the payment of just compensation.
- Legal interest on the value of the acquired property, as an effective forbearance, is
intended to eradicate the issue of the constant variability of the value of the currency
over time, and to limit the opportunity loss of the owner from non-payment of just
compensation that can drag from days to days.
- Bangko Sentral ng Pilipinas Circular No. 799, Series of 2013 – just compensation or the
balance thereof shall be pegged at the rate of 12% per annum from the time of the

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taking until June 30, 2013. Thereafter, it shall earn legal interest at the rate of 6% per
annum until full payment.

Consent of Beneficiary Not Necessary in Determining Just Compensation

- Law does not mention the participation of the farmer-beneficiary.

Modes of Payment
- May be done through:
1. Cash and financial instruments of the government, payable as follows:
a. Lands above 50 hectares (with respect to the excess hectarage):
i. 25% in cash; and
ii. 75% in government financial instruments;
b. Lands above 24 hectares to 50 hectares:
i. 30% in cash; and
ii. 70% in government financial instruments; and
c. Lands 24 hectares and below:
i. 35% in cash; and
ii. 65% in government financial instruments
2. Shares of stock in government-owned or controlled corporations, preferred
shares of the Land Bank, physical assets or other qualifies investments;
3. Tax credits which can be used against tax liabilities; and
4. Land Bank of the Philippines bonds which shall mature every year until the 10 th
year.

Landowner Cannot Insist in Cash Payment Only

- Law says that just compensation shall be paid partly in cash and the remainder by
means of bonds, government financial instruments, shares of stock in government-
owned or controlled corporations, tax credits or Land Bank of the Philippines bonds.

Features of Land Bank of the Philippines Bond

1. Shall mature annually at the rate of 10% of the face value of the bonds from the date of
issuance until the 10th year;
2. Are transferable and negotiable;
3. Can be used for any of the following:
a. Acquisition of:
i. Land or other real properties of the government, including assets under
the Asset Privatization Program and other assets foreclosed by

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government financial institutions in the same province or region where

the lands for which the bonds were paid are situated; or
ii. Shares of stock of government-owned or controlled corporations or
shares of stocks owned by the government in private corporations;
b. Payment for:
i. Various taxes and fees to government;
ii. Tuition fees of the immediate family of the original bondholder in
government universities, colleges, trade schools, and other institutions;
or
iii. Fees of the immediate family of the original bondholder in government
hospitals;
c. Posting of:
i. Bail bonds for the provincial release of accused persons; or
ii. Performance bonds; or
d. Security for loans with any government financial institution, provided the
proceeds of the loans shall be invested in an economic enterprise.

Documentary Requirements for Voluntary Offers of Sale

- Landowners who voluntarily offer their agricultural lands for sale must attach the
following documents to their written offer:
1. Proof of ownership, if untitled;
2. Tax declaration; and
3. Approved survey plan
- If the land owner fails to submit documentary requirements, the land will be subjected
to compulsory acquisition.

Mode of Payment in Voluntary Transfers

- Farmer-beneficiary pays the agreed price of the land directly to the landowner.

Voluntary Land Transfer/Direct-Payment Scheme No Longer Allowed

- It was allowed up to June 30, 2009 only. After said date, the modes of acquisition are
limited to voluntary offer to sell and compulsory acquisition.

CHAPTER VII: LAND REDISTRIBUTION

Who is Eligible to Become an Agrarian Reform Beneficiary?
- Must be a landless resident of the same barangay, or of the same municipality.

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Meaning of Landless Resident

- A farmer or tiller who owns less than three hectares of land. It could refer to any of the
following:
1. Agricultural lessees and share tenants;
2. Regular farmworkers;
3. Seasonal farmworkers;
4. Other farmworkers;
5. Actual tillers or occupants of public lands;
6. Collectives or cooperatives of the above beneficiaries;
7. Others directly working on the land.

Qualifications of an Agrarian Reform Beneficiary

- To qualify as an agrarian reform beneficiary, the farmer (whether tenant, lessee, or
worker) must be:
1. A person who owns less than 3 hectares of agricultural land;
2. A Filipino citizen;
3. A resident of a barangay (or municipality if there are no sufficient number of
qualified Agrarian Reform Beneficiaries in the barangay);
4. At least 15 years of age at the time of identification, screening, and selection of
farmer-beneficiaries; and
5. Willing, able, and equipped with the aptitude to cultivate and make the land
productive.

Special Qualifications
- Farmworkers in commercial farms of plantations can qualify as an agrarian reform
beneficiary if they were already employed as of June 15, 1988 in the landholding
covered by the CARL of 1988.
- Graduates of a four-year bachelor’s degree in agriculture, agriculture engineering,
forestry, forest engineer, or other related fields can qualify as a beneficiary of
government-owned lands contemplated under E.O. No. 75, Series of 2019.

Who are Disqualified to Become Agrarian Reform Beneficiaries?

1. Fail to:
a. Meet the basic qualifications;
b. Have paid an aggregate of three annual amortizations;
c. Exercise right of redemption/repurchase within two years in the foreclosure if
mortgage by the Land Bank of the Philippines of a previously awarded land;

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2. Waive their right to become agrarian reform beneficiaries in exchange of compensation,

provided that the waiver has not been questioned in the proper government entity;
3. Refuse to pay three annual amortizations for land acquired through voluntary land
transfer or direct payment scheme, resulting in the repossession by the landowner;
4. Are dismissed for cause;
5. Retire or voluntarily resign from their employment;
6. Misuse the land or divert the financial support services extended by the government;
7. Misrepresent material facts in their basic qualifications;
8. Sell, dispose, or abandon the lands awarded to them by the government;
9. Convert lands to non-agricultural use without prior approval of the Department of
Agrarian Reform;
10. Are adjudged guilty of forcible entry or unlawful detainer over the property; or
11. Violate agrarian reform laws and regulations.

- Also attaches to landowners who have voluntarily offered their landholding for coverage
under the CARP.
- As well as the farm workers holding managerial (or supervisory) positions as of June 15,
1988. However, farm workers promoted to managerial or supervisory positions after
they were identified, screened and selected will remain as qualified.

Order of Distribution
- Each child is entitled to three hectares --- (already provided in page 9).
- After the children, the covered landholding will be distributed to the following:
1. Agricultural lessees and share tenants; and
2. Regular farmworkers
- If the 2 have already received their 3 hectares, the remaining portion will be distributed
to:
1. Seasonal farmworkers;
2. Other farmworkers;
3. Actual tillers or occupants of public lands;
4. Collectives of cooperatives of the above beneficiaries; and
5. Others directly working on the land.

Maximum Area That Can be Owned by or Awarded to Beneficiaries

- 3 hectares
- If a tenant or farm worker already owns two hectares of agricultural land, he can still be
awarded 1 hectare.

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Equitable Allocation
- If the land is insufficient to meet the 3-hectare award ceiling for each agricultural lessee,
tenant, or regular farmworker in a particular landholding, it shall be divided equally
among them.
- If inadequate to provide each beneficiary with land of more than 1000 square meters,
they shall be awarded 1,000 square meters of land taking into account length of lease or
service, as the case may be.
- If less than 1000 square meters be left in the course of award, remaining area shall then
be distributed equally among these beneficiaries who had received 1000 square meters.
- Other qualified beneficiaries who are displaced after the distribution of all available land
to agricultural lessee, tenant, or regular farmworkers, may still qualify as beneficiaries in
other lands covered under the CARP.
- If the landholding is more than enough to accommodate the 3-hectare limit – the excess
will be distributed to agrarian reform beneficiaries in the following order of priority:
1. Seasonal farmworkers;
2. Other farmworkers;
3. Actual tillers or occupants of public lands; and
4. Others directly working on the land.
- If inadequate to provide the beneficiaries of each remaining beneficiaries with land
more than 1,000 square meters = each be awarded 1,000 square meters taking into
account length of service.
- If what is left in the course of award is less than 1000 square meters = remaining area be
distributed equally among beneficiaries who received 1000 square meters.
- Excess area after allocation = awarded to collectives or cooperatives
- Tenants in the excess area shall be given reasonable time to harvest, subject to the rules
on standing crops.

Factors to Be Considered in Determining the Size of Land to be Awarded

1. Crop type
2. Soil type
3. Weather patterns; and
4. Other pertinent factors critical for the success of the beneficiaries.

Transfer of Ownership to the Beneficiaries Not Automatic

- Transferred only upon payment of just compensation to the Landowner

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Certificate of Land Ownership Award (CLOA)

- Document evidencing ownership of the land granted or awarded to the qualified
beneficiaries, and contains the restrictions and conditions for such grant.
- (INDEFEASIBILITY) Entitled to be as indefeasible as certificates of title in registration
proceedings and are enrolled in the Torrens system of registration.
- Remain valid and subsisting until duly cancelled.

Grounds for Cancelation

1. The landholding is excluded or exempted from coverage of the Comprehensive Agrarian
Reform Program;
2. Notices of coverage to the landowner were defectively or irregularly served;
3. there were errors in the identification of the landowner, and landholding, and its
technical descriptions;
4. the landowner's title was cancelled prior to issuance of Certificates of Deposit in cases
of Certificates of Land Ownership Awards;
5. the landholding falls under the exclusive authority of the Department of Environment
and Natural
6. Resources or the National Commission on Indigenous Peoples;
7. the Department of Agrarian Reform Clearance is nullified;
8. the beneficiaries have:
a. misused the land;
b. misused or diverted financial and support services;
c. Materially misrepresented their basic qualifications;
d. prematurely converted awarded land under Section 73 (F) of the Comprehensive
Agrarian Reform Law of 1988 and Section 11 of the Agriculture and Fisheries
Modernization Act of 1997;
e. sold, transferred, leased, or conveyed their right of ownership, right to use, or
any other usufructuary right over awarded land to violate or circumvent the
provisions of Sections 27 and 73 of the Comprehensive Agrarian Reform Law of
1988;
f. deliberately and absolutely failed to pay three consecutive amortizations, and
willfully and deliberately neglected or abandoned the awarded land;

o note: inapplicable if beneficiaries have waived the land awarded to them.

o Neglect or Abandonment – clear and absolute intention to renounce a
right or claim, or to abandon a right or property, coupled with an external
act by which the intention is expressed or carried into effect.

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Jurisdiction over Cancellation of Certificates of Land Ownership

- Original jurisdiction of Secretary of the Department of Agrarian Reform.

- Registered certificates, once under the operation of Torrens system, are not included
and may be attacked through an action for annulment of the certificate itself before a
competent court.

When the Rights and Obligations of Beneficiaries Commence

- From receipt of a duly registered Certificate of Land Ownership Award and their actual
physical possession.
- Pending issuance, identified and qualified beneficiaries have usufructuary rights.

Obligations of Agrarian Reform Beneficiaries

1. Exercise due diligence in the use, cultivation and maintenance of the land, including
improvements thereon; and
2. Pay:
a. The Land Bank 30 annual amortizations with 6% interest per annum;
b. Real property taxes due on their awarded lands.

- Amortization – start one year after the date of registration, but if actual occupancy took
place after registration, one-year period shall be reckoned from constructive
occupation.

Individual Titles for Every Beneficiary

- General rule: individual title

- If beneficiaries opt for collective ownership: issued in the name of the co-owners or the
collective organization which shall list the names of the beneficiaries.

Conditions for Issuance of Collective Title

1. The farm management system of the land covered is not appropriate for individual
farming;
2. The farm labor system is specialized, i.e., where the farmworkers are organized by
functions and not by specific parcels such as spraying, weeding, packing, and other
similar functions;
3. The beneficiaries are currently not farming individual parcels but collectively work on
large contiguous areas; and

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4. The farm consists of multiple crops being farmed in an integrated manner or includes
non-crop production areas that are necessary for the viability of farm operations, such
as packing plants, storage areas, dikes, and other similar facilities that cannot be
subdivided or assigned to individual farmers.

Title Must Indicate That It is an Emancipation Patent or Certificate of Land Ownership

- Must be indicated even in subsequent transfer title.

Basis of Amortization

- Maximum amortization is 5% of the annual gross production as established by the

Department of Agrarian Reform.
- After the 5th year, the interest rate and/or the principal obligation may be reduced by
the Land Bank to make repayment affordable:

1. If due to failure of production, the scheduled annual payments exceed 10% of

the annual gross production;
2. The failure to produce is not due to the beneficiary’s fault.

Effect of Failure To Pay Amortizations

- If an aggregate of three annual amortizations = Land Bank can forfeit the landholding
and award it to other qualified beneficiaries and will be permanently disqualified from
becoming a beneficiary.

Sale or Transfer of Awarded

- Prohibited within a period of 10 years, sell or transfer ownership of the land awarded,
except:

1. Through hereditary succession;

2. To the Government;
3. To the Land Bank of the Philippines; or
4. To other qualified beneficiaries.

- Null and void if transferred to an ineligible.

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Effect of Sale or Transfer to the Government

- Children or the spouse of the transferor can repurchase the land within two years from
the date of transfer.

Sale of Land That Has Not Been Fully Paid

- May sell transfer, or convey his rights to the land under the following conditions:

1. Approval of the Department of Agrarian Reform must first be obtained;

2. The land should be sold only to an heir of the beneficiary or to any other
qualified beneficiary; and
3. The transferee must undertake to cultivate the land himself, otherwise, the Land
Bank of the Philippines will take the land for proper disposition.

- If complied with, Land Bank will compensate beneficiary, or the seller or transferor, in
one lump sum for the amounts he has already paid, together with the value of
improvements he has made on the land.

Lease by Beneficiary to Another Person

- ALLOWED IF: The lease is also for agricultural purposes. Otherwise, must seek the
approval of the DAR.

Lease by Beneficiary to Former Landowner

- Can be done only after obtaining the approval of DAR through the Provincial Agrarian
Reform Coordinating Committee.

Mmyline Manes | AGRARIAN LAW | ATTY. UNGOS III