January 13 - USec. Pangulayan (Updates in Agrarian Reform)

Mandatory Continuing Legal Education Program
ATTY. LUIS MEINRADO C. PAÑGULAYAN, MNSA, CESO I

Undersecretary, Legal Affairs Office
Department of Agrarian Reform
UP Institute for the Administration of Justice, UP Law Center

REGALIAN DOCTRINE
“Updates in Agrarian Reform (Law as a Means of Social Control)”

Atty. Luis Meinrado C. Pañgulayan, MNSA, CESO I
All lands of the public domain, waters, minerals, coal,
petroleum, and other mineral oils, all forces of potential
energy, fisheries, forests or timber, wildlife, flora and fauna,
and other natural resources are owned by the State.
With the exception of agricultural lands, all other natural
resources shall not be alienated. The exploration,
development, and utilization of natural resources shall be
under the full control and supervision of the State.
Section 2, Article XII, 1987 Philippine Constitution

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,
taking into account ecological, developmental, or equity
considerations, and subject to the payment of just
compensation. In determining retention limits, the State
shall respect the right of small landowners. The State shall
further provide incentives for voluntary land-sharing.
Sec. 4, Article XIII, 1987 Philippine Constitution

The Congress shall give highest priority to the enactment
of measures that protect and enhance the right of all
people to human dignity, reduce social, economic and
political inequalities and to remove cultural inequities by
equitably diffusing wealth and political power for the
common good.
To this end, the State shall regulate the acquisition,
ownership, use and disposition of property and its
increments.

The use, enjoyment, occupation or disposition of
private property is not absolute. It is predicated on the
social functions of property. It is restricted in a sense
so as to bring maximum benefits to all and not to a few
chosen individuals.
Felisa Ferrer vs. Carganillo, et al.

GR No. 170956 12 May 2010

CONSTITUTIONAL BASIS
OF AGRARIAN REFORM

It is the policy of the state to pursue and agrarian
reform program founded on the right of farmers and
regular farmworkers who are landless, to own
directly or collectively the lands they till or, in the case
of other farmworkers, to receive a just share of the
fruits thereof.

STATUTORY BASIS OF
AGRARIAN REFORM

REPUBLIC ACT 6657, otherwise known as the
Comprehensive Agrarian Reform Law, regulates the
ownership, disposition and use of agricultural lands.
REPUBLIC ACT 9700, otherwise known as the

Comprehensive Agrarian Reform Program Extension
with Reforms or CARPER ended the issuance and
service of the Notice of Coverage

The State shall be guided by the principles that land
has a social function and land ownership has a social
responsibility. Owners of agricultural lands have the
obligation to cultivate directly or through labor
administration the lands they own and thereby make
the lands productive.
Section 2, RA 9700

CONCEPT OF AGRARIAN REFORM

•Redistribution of lands
•Farmers or regular farmworkers
•Regardless of fruits or crops produced
•Irrespective of tenurial arrangements
Section 3 RA 6657 As Amended

•Includes totality of support services
•Designed to lift the economic status of the

beneficiaries

THE POWERS OF DAR

QUASI-LEGISLATIVE POWERS OF THE DAR
The DAR (and the PARC) shall have the power to

issue rules and regulations, whether substantive or
procedural, to carry out the objectives and the
purposes of this Act. Said rules shall take effect ten
(10) days after publication in two national
newspapers of general circulation.
Section 49, RA 6657, As Amended

QUASI-JUDICIAL POWERS OF THE DAR
The DAR is vested with primary jurisdiction to determine

and adjudicate agrarian reform matters and shall have
exclusive original jurisdiction over all matters involving the
implementation of agrarian reform, except those falling
under the exclusive jurisdiction of the Department of
Agricultural (DA) and the Department of Environment and
Natural Resources (DENR).
Section 50, RA 6657, As Amended

MEMBERSHIP
• President of the Philippines as Chairperson
• Secretary of Agrarian Reform as Vice-Chairperson
• Secretaries of the Cabinet:
• OES, DA, DENR, DBM, DILG, DPWH, DTI, DOF, DOLE,
NEDA, LBP, NIA, LRA
• Sectoral Representatives:
• Six (6) representatives of affected landowners
• Six (6) representatives of agrarian reform beneficiaries.

AGRICULTURAL LANDS

Lands devoted or suitable to agricultural activity.
Lands not classified as mineral, forest, residential,

commercial or industrial land.

Agricultural Land refers to land devoted to or suitable for
the cultivation of the soil, plating of crops, growing of trees,
raising of livestock, poultry, fish or aquaculture production,
including the harvesting of such farm products and other
farm activities and practices performed in conjunction with
such farming operations by persons whether natural or
juridical, and not classified by law as mineral land, forest or
national park or classified for residential, commercial,
industrial or other non-agricultural uses before 15 June 1988
(enactment of CARL).
Section 21, DAR AO No. 1, Series of 2002

AGRICULTURAL ACTIVITY

• Cultivation of the soil
• Planting of crops
• Growing of fruit trees
• Harvesting of farm products
• Other farm activities and practices
performed by a farmer in
conjunction with such farming
operations done by person whether
natural or juridical

TAX DECLARATION NOT BASIS FOR
LAND CLASSIFICATION

“The classification made by the Land Regulatory Board
of the land in question outweighed the classification
stated in the tax declaration. The classification of the
board in said case was more recent than that of the tax
declaration and was based on the present condition of
the property and the community thereat.”
Halili, et al. vs. CA, et.al
GR No. 113539. March 12 1998

• There is no law or jurisprudence that holds that the land
classification embodied in the tax declarations is
conclusive and final nor would proscribe any further
inquiry.
• Tax declarations are clearly not the sole basis of the
classification of a land. In fact, DAR Administrative Order
No. 6 Series of 1994 lists other documents, aside from tax
declarations, that must be submitted when applying for
exemption from CARP.
(Republic vs. CA and Green City Estate & Development Corporation)
GR No. 139592. October 5 2000

SPECIFIC LANDS COVERED BY CARP

All alienable and disposable lands of the public
domain devoted to or suitable for agriculture.
All other lands owned by the Government devoted

to or suitable for agriculture.
All private lands devoted to or suitable for

agriculture regardless of the agricultural products
raised or that can be raised thereon.

STATUTORY LIMITATIONS TO
ACTUALIZE THE AGRARIAN REFORM
MANDATE

• Landowners can only own a maximum area of five (5)
hectares
• Landholdings beyond the ownership ceiling is subject to
acquisition by the State
• Acquisition is subject to just compensation
• Lands acquired by the State are distributed to qualified

farmer-beneficiaries (FBs)

• Qualified FBs pay amortization for 30 years subject to 6%
interest (per annum)
• Qualified FBs are prohibited to transfer ownership of the

awarded lands within ten years from registration of CLOA
or EP
• FBs must cultivate and make the land productive

• Any and all kinds of transfer of Agricultural Lands
require clearance from DAR:
• DAR AO 1 s. 1989 applies to transfer of private agricultural

lands which are not covered by an NOC
• DAR AO 8 s. 1995 applies to transfer of awarded lands
• MC 19 s. 1978 refers to transfer of lands covered by CLT in

favor of the heirs due to death of tenant

LAND USE

Land use refers to the manner of
utilization of land, including its allocation,
development and management.
Section 2.11, DAR AO No. 1 Series of 2002

LAND USE CONVERSION

Land use conversion refers to the act or
process of changing the current physical use of
a piece of agricultural land into some other use
or for another agricultural activity other than
the cultivation of the soil, planting of crops,
growing of trees, including harvesting of
produce therefrom, as approved by DAR.
Section 2.12, DAR AO No. 1 Series of 2002

INSTANCES WHEN AGRICULTURAL
LANDS ARE NOT COVERED BY
AGRARIAN REFORM

EXCLUSION
EXEMPTION
CONVERSION

THE CONCEPT OF EXCLUSION

The act or process of excluding lands from
coverage under the agrarian reform
program solely because said lands are
devoted to livestock and poultry.

Lands devoted to livestock and poultry-
raising are not included in the
definition of agricultural land.
Luz Farms Vs. DAR

G.R. No. 86889 December 4, 1990

Private lands actually, directly and exclusively used
for prawn farms and fishponds shall be exempt from
the coverage of CARP.
Provided, That said prawn farms and fishponds have

not been distributed and Certificate of Land
Ownership Award (CLOA) issued to agrarian reform
beneficiaries under the Comprehensive Agrarian
Reform Program.
Section 2-b, RA 7881*

THE CONCEPT OF EXEMPTION

The act or process of exempting
agricultural lands from the application of
the Comprehensive Agrarian Reform Law
due to its use or purpose, physical
conditions, or prior reclassification.

GROUNDS FOR EXEMPTION
•Use and Purpose

•Physical Condition
•Classification

Exemption due to Use and Purpose
The act or process of exempting lands from the
agrarian reform program due to the fact that
said lands are actually, directly and
exclusively (ADE) used and found to be
necessary for education, religion, military, penal
and other purposes.
Sec. 10, RA 6657, as amended

Examples of Exemption due to Use and Purpose
Environmental necessity as in the case of actual,
direct and exclusive use of such lands for parks,
wildlife, forest reserves, reforestation, fish
sanctuaries and breeding grounds, watersheds, and
mangroves.
National security concerns as in the case of actual,
direct and exclusive use of such lands for national
defense.
Educational needs as in the case of actual, direct and
exclusive use of such lands for school sites and campuses
including experimental farm stations operated by public or
private schools for educational purposes, seeds and
seedlings research and pilot production centers.
Religious purposes as in the case of actual, direct and

exclusive use of such lands for church sites and convents
appurtenant thereto, mosque sites and Islamic centers
appurtenant thereto, communal burial grounds and
cemeteries.
Penological requirements as in the case of actual,
direct and exclusive use of such lands for penal
colonies and penal farms actually worked by the
inmates.
Health and scientific concerns as in the case of

actual direct and exclusive use of such lands for
private research and quarantine centers.

Exemption due to Physical Condition
• The agricultural land has 18% slope and over

thereby qualifying the land as forest land
• The land is not agriculturally developed. as of
June 15, 1988
Sec. 10 RA 6657, as amended

Basis of Exemption due to Slope
No land of the public domain eighteen per cent (18%)

in slope or over shall be classified as alienable and
disposable, nor any forest land fifty per cent (50%) in
slope or over, as grazing land.
Forestry Reform Code of the Philippines

Section 15, PD 705 s. 1975

Alienable despite Presence of Slope
• Covered by existing titles or approved public land
application
• Actual, continuous, adverse and public occupation for
a period of not less than thirty (30) years since 1975*
• Lands kept in vegetative condition
• Expropriated lands for public interest

Exemption due to Classification
“With respect to conversions of agricultural lands
covered by R.A. No. 6657 to non-agricultural uses,
the authority of DAR to approve such conversions
may be exercised from the date of the law's
effectivity on June 15, 1988.”
DOJ Opinion No. 44 s. 1990

• Applications for exemption involving irrigated and irrigable
lands, i.e., those classified as not subject to and non-
negotiable for conversion, but subsequently reclassified into
non-agricultural uses prior to June 15, 1988, can no longer be
granted.
• The Supreme Court Ruling in Natalia Realty vs. DAR (G.R. No.
103302. August 12, 1993) should not be made to generally
apply to irrigated and irrigable prime agricultural lands.
DOJ Opinion No. 43 s. 2011

GROUNDS FOR THE REVOCATION
OF EXCLUSION/EXEMPTION GRANT

The Exclusion Grant is revoked if the livestock,
poultry, prawn or fishing activity ceases to exist.
The Exemption Grant is revoked if the Public

Purpose ceases/ If the sloped area becomes
agriculturally developed/ if the reclassified land is
irrigated or irrigable.

THE CONCEPT OF CONVERSION

The act or process of changing the current
physical use of a piece of agricultural land to
non-agricultural purpose/s, such as
residential, commercial, and/or industrial.

• Conversion is the inverse of
CARP Coverage and is
subject to:
• Tillers’ Rights
• Food security
• Statutory Conditions which
must be annotated on the
title of the converted
agricultural land

The mandate of DAR is clear under Section 4 Par. K
of Executive Order No. 129-A which provides that
DAR is authorized to “approve or disapprove the
conversion, restructuring or readjustment of
agricultural lands into non-agricultural uses.”

EXAMPLES OF PROJECTS WITH
RESIDENTIAL PURPOSE

COMMERCIAL PURPOSE

INDUSTRIAL PURPOSE

CONVERSION & RECLASSIFICATION

CONVERSION
Conversion is the act of changing the

current use of a piece of agricultural land
into some other use as approved by DAR.

RECLASSIFICATION
Reclassification is the act of specifying how

agricultural lands shall be utilized for non-
agricultural uses as determined by a Local
Government Unit.

Mere reclassification of an agricultural land
does not automatically allow a landowner to
change its use. One has to undergo the process
of conversion before being permitted to use
the agricultural land for other purposes.
CREBA vs DAR
G.R. No. 183409 June 18, 2010

A city or municipality may, through an ordinance passed by the
sanggunian after conducting public hearings for the purpose,
authorize the reclassification of agricultural lands and provide for
the manner of their utilization or disposition in the following
cases:
a) When the land ceases to be economically feasible and sound
for agricultural purposes as determined by the Department of
Agriculture
b) Where the land shall have substantially greater economic value
for residential, commercial, or industrial purposes, as
determined by the sanggunian concerned
RA 7160, Section 20 (a)

USE OF THE COMPREHENSIVE LAND USE
PLANS AND ORDINANCES AS PRIMARY
REFERENCE DOCUMENTS IN LAND USE
CONVERSIONS
Pursuant to RA 6657 [as amended] and EO 129-A, actions on
applications for land use conversions on individual
landholdings shall remain as the responsibility of DAR, which
shall utilize as its primary reference documents the
comprehensive land use plans and accompanying ordinance
passed upon and approved by the LGUs concerned, together
with the National Land Use Policy.
MC No. 54 s. 1993

REQUISITES FOR CONVERSION

• Land has ceased to be economically feasible and
sound for agricultural purposes.
• Locality has become urbanized
• Land will have a greater economic value for non-
agricultural purposes.
• Land is neither irrigated nor irrigable.
Section 65, RA 6657, as amended

DAR Administrative Order Number 5 Series
of 2018 effective July 28, 2018 requires the
conduct of public consultations on certain
land use conversion applications by the
Regional Director or the Secretary.

PROCEDURE FOR CONVERSION

• File Application
• Pay Filing Fees, Inspection Costs and Post Bonds
• Submit the following:

• Proof of Financial Capacity
• Certifications from Government Agencies
• Development Plan

IMPORTANCE OF DEVELOPMENT
PLAN

Failure to implement the conversion plan
within five (5) years from the approval of such
conversion plan will result to revocation of the
conversion order, bond forfeiture and
immediate coverage under CARP of the
landholding.
Section 22, RA 9700

GROUNDS FOR THE REVOCATION
OF CONVERSION GRANT

•Violation of any of the conditions of the
conversion grant due to the fault of the
applicant
•Alteration of the Development Plan without

DAR approval
•Failure to implement the Development Plan

within five (5) years

CONDITIONS FOR THE GRANT OF
CONVERSION

•Posting of Performance Bond
•Payment of Disturbance Compensation to
affected Farmers
•Full adherence to the Development Plan
•Annotation of the conversion grant on the title

EFFECTS OF REVOCATION

•Automatic Coverage under CARP
•Automatic Reversion to Agricultural Land
Classification
•Forfeiture of Bonds

ILLEGAL CONVERSION

• Actual use of the land for non-agricultural
purpose without DAR Approval.
• Intent to avoid application of CARP in the
landholding.
• Intent to dispossess any farmer tilling the
land.
Section 73-c of RA 6657, as amended

PREMATURE CONVERSION

• Undertaking of any development activity without
DAR conversion order.
• Development activity will alter physical
characteristics of the land.
• Alteration renders land suitable for non-
agricultural purposes without DAR conversion
order.
Section 4, RA 8435 (AFMA Law)

ADMINISTRATIVE SANCTIONS FOR
ILLEGAL & PREMATURE CONVERSION

 Revocation or withdrawal of the conversion order
 Blacklisting of the applicant, developer or representative
 Automatic disapproval of conversion applications
 Issuance of cease and desist order by the Secretary or
Regional Director, as the case may be, upon verified reports
that premature, illegal or unauthorized conversion activities
are being undertaken
 Forfeiture of cash bond or performance bond
Section 61, DAR AO No. 1 Series of 2002

CRIMINAL SANCTIONS FOR
ILLEGAL CONVERSION

Imprisonment of six (6) years and one (1) day to twelve (12)
years or a fine of not less than Two hundred thousand
pesos (P200,000.00) and not more than One million pesos
(P1,000,000.00), or both, at the discretion of the court
upon any person who violates Section 73, subparagraphs
(c), (d), (e), and (i) of Republic Act No. 6657, as amended.
Section 74 of RA 6657, as amended

CRIMINAL SANCTIONS FOR
PREMATURE CONVERSION

 Imprisonment of two (2) to six (6) years
 A fine equivalent to one hundred percent

(100%) of the government's investment cost
Section 11, RA 8435 AFMA Law

NEW NORMAL IN THE CONVERSION
PROCESS
• The conversion application should adopt virtual
processes
o Electronic filing
o Electronic issuance of Orders and Resolutions
• The recognition of projects critical to the new normal
• Update of Filing Fees/ Bonds/ Inspection Costs
• Non Acceptance/ Non Docketing of Incomplete
Applications

EXCLUSION OF DA CERTIFICATES OF
ELIGIBILITY
IN THE CONVERSION REQUIREMENTS
• Cancellation of DA AO 1, S. 2017 and DA AO 18, S. 2020

• DA Abolition of National Technical Evaluation
Committee on Land Use Matters (NTECLUM) / Regional
Technical Evaluation Committee on Land Use Matters
(RTECLUM)

Determination of irrigated and irrigable lands
based on the consolidated report on the
location of such lands as prepared by the
National Irrigation Administration subject to
validation by the DAR.

Pursuant to NIA M.C. No. 24, Series of 2019,
irrigable land/area is defined as land suitable
for the conduct of agricultural activities
which require irrigation and display physical
features justifying the operations of an
irrigation system.

ELEMENTS OF AN IRRIGABLE LAND
• Physical features, which show an inherent potential for the
development of an irrigation system, such as: soil depth, soil
texture, field terrain, slope, and other relevant characteristics.
• Potential for a quality water supply which can be sourced
through a distribution system.
• Part of a serviceable area which is within an actual and funded
irrigation system or which can be serviced with existing and
operating irrigation activities.

ELEMENTS OF AN IRRIGABLE LAND
• Within an area where the approved or adopted comprehensive

Land Use Plan (LUP) by the concerned LGU for surrounding or
contiguous landholdings encourages or agrees to the conduct
of agricultural activities.
• Presence of qualified farmer beneficiaries or tenants/lessees

willing to till the land and raise crops therein.

REQUIREMENTS
• Application at RD or BALA
• No need for CLUP /ZO submission
• Land is neither irrigated nor irrigable
• Subject to 5 Year Development Plan
• Disturbance Compensation to Farmers
• Certification of Critical Nature by the Agency Head
• Certification from NEDA/RDC

JURISDICTION
Less than 5 hectares: Approved by the Regional
Director
5 hectares or more: Approved by the Secretary or

a duly authorized office or
committee
(Consider Special Projects/Adjacent Lots under DAR AO 1, Series

of 2002)

JURISDICTION
In determining total land area under application for conversion, the area of the
adjacent land which has been converted for a similar purpose by previous
conversion grant regardless of owner shall be considered. Thus, if the land
being applied for conversion and the adjacent land shall result to a contiguous
area with a similar purpose exceeding five hectares, the application shall be
brought to the LUCD BALA for processing and shall be acted upon by the
Secretary or the duly authorized office or committee. The same manner of
determination of total area shall apply if the new conversion application is to be
integrated as part of an existing project.

SPECIAL PROJECTS AND UNDERTAKINGS
WHICH ARE CRITICALLY IMPORTANT
Those endeavors which, due to circumstances surrounding a specific community,
shall:
• Bring more benefits to the public, or which is absolutely necessary in the
community.
• Bring more opportunities to the residents in the community, or which
would promote public use, or which, due to sudden change of events,
would help boost the economy.
• Bring more opportunities which would alleviate the lacking economic
needs of the community where the project is intended to be had.
• Bring more opportunities which would be beneficial to the underprivileged
or homeless citizens.

SPECIAL PROJECTS AND UNDERTAKINGS
WHICH ARE CRITICALLY IMPORTANT
Such endeavors also address the urgent needs of the economy under the
national health emergency consisting of, but are not limited to, the following
projects:
• agro-industrial
• low cost or socialized housing
• power generation or distribution
• water generation
• telecommunications

CRITICAL PROJECTS
• Socialized Housing Projects

• Energy Projects
• Water Related Projects
• Lands Acquired as National
Project Sites (RA 10752)
• Resettlement Sites
• Telecom Project Sites
• Agro-Industrial Sites

REQUISITE CERTIFICATIONS
A conversion application for an energy project (i.e., power
generation, transmission, or distribution) shall be certified by:
• The Department of Energy if it is the proponent agency.
• Or the National Electrification Administration if it is the
proponent agency.
• Or the local government unit involved in the project.
• Or by the agency which is the proponent of the project, that it
is a priority energy project based on Section 1 of these Rules.

A conversion application for socialized housing projects as defined under DAR A.O. No. 1,
Series of 2002, which include, but is not limited to, i.e. those which are undertaken by
government entities; or subsidized housing or housing programs of National Housing
Authority (NHA), or by the Local Government Units (LGUs), or by a private entity which
complies with the low-cost housing standards of the NHA as determined by the
Socialized Housing Finance Corporation (SHFC); or those which are under the coverage
of the National Home Mortgage Finance Corporation and such other similar projects
shall be certified by:
• The Department of Human Settlements and Urban Development (DHSUD) if it is
the proponent agency.
• Or the NHA if it is the proponent agency.
• Or by the agency which is the proponent of the project, that it is a priority housing
project based on Section 1 of these Rules.
A conversion application for a telecommunication site or areas shall be
certified by:
• The National Telecommunication Commission if it is the proponent
agency.
• Or the Department of Information and Communications Technology if it is
the proponent agency.
• Or by the agency which is the proponent of the project, that it is a priority
telecommunication project based on Section 1 of these Rules.

A conversion application for water-related projects in accordance with the
State Policies under Section 1 of R.A. No. 6234 (MWSS Certification) or
Infrastructure Flagship Projects as provided on Water Security under
Administrative Order No. 32 of the Office of the President (O.P.) which was
passed on 26 August 2020 and such other similar projects shall be certified by:
• The Metropolitan Waterworks and Sewerage System if it is the proponent
agency.
• Or the Local Water Utilities Administration if it is the proponent agency.
water project based on Section 1 of these Rules.

A conversion application for resettlement or relocation sites for disaster-

stricken areas for displaced informal settlers shall be certified by:
• The National Disaster Risk Reduction and Management Council (NDRRMC)
if it is the proponent agency.
resettlement or relocation project based on Section 1 of these Rules.

A conversion application for the use of agricultural lands acquired under

R.A. No. 10752 (Right of Way Act of 2015) as site for national government
infrastructure projects shall be certified by:
• The proponent agency (i.e. DPWH, DOTr, NIA, etc.).
• Or the local government unit involved in the project that it is a
priority infrastructure project based on Section 1 of these Rules.

A conversion application for an agro-industry (agro-industrial)

project shall no longer require any certification from the
Department of Agriculture or any agency. It is sufficient that the
local government unit, if any, which is involved in the project shall
certify that it is a priority project based on Section 1 of these Rules.
In the absence of any participating local government unit, the DAR
shall evaluate the merits of the application and make the
determination.

AGRO-INDUSTRIAL PROJECTS
Agro-Industry (or Agro-Industrial) Undertaking is a generic term

applied to the industrial processing of raw materials and
intermediate products derived from the agricultural sector (defined
broadly to include forestry, fishing, crop, and animal husbandry); It
also includes the processing and packaging of food using modern
equipment and methods; relating to both industrial and agricultural
purposes. These activities include but are not limited to the
following:

• Commercial processing of agricultural crops (such as but not limited to

coconut, jathropha, sugarcane, cassava, corn, palay, and sweet sorghum).
• Growing/Processing/Manufacturing of agricultural animal, and marine

products (livestock, piggery and poultry, dairy, fruits and vegetables, aqua-
culture products).
• Integrated livestock, poultry and related projects involving primary

production up to processing of final product.

• Processing of agricultural inputs such as feeds, veterinary drugs and
vaccines, fertilizers, and agri-chemicals.
• Processing of agricultural waste materials into commercially valuable

products.
• Production and packaging of foods such as meat, milk, eggs, fish,

aquaculture products and other similar items.
• Production or processing of raw materials for agro-industry or agro-

industrial projects.

Any and all applications for conversion for agro-industry or agro-

industrial undertakings will only be approved if it is determined by
the DAR within 30 days that it is a priority project necessary for the
increase in yield and income of the farmers which include agrarian
reform beneficiaries (ARBs), Agrarian Reform (AR) communities,
ARB organizations, and AR cooperatives.

It is indispensable that the applicant shall prove that it has the

necessary financial, logistical, technological, organizational, and
other resources to complete the agro-industry or agro-industrial
project within the total area covered in the application within a
period of five (5) years.

ILLEGAL CONVERSION
To constitute as illegal conversion, it is sufficient that there

is an attempt or an actual change in the use of the land
from agricultural to a residential, commercial, or industrial,
and other non-agricultural activity without a conversion
grant or clearance based on the requirements under
Section 65 of R.A. No. 6657, as amended.

ILLEGAL CONVERSION
The intent to avoid the application of R.A. No. 6657, as amended, and to
dispossess a tenant as provided under Section 73(c) of R.A. No. 6657, as
amended, is established from the following instances:
• When an agricultural land is developed without a DAR Conversion Order.
• When the agricultural lands being converted is irrigated or irrigable.
• When there are farmers, farmworkers, or tenants on the landholding who
are adversely affected by the conversion.
• When there is a land activity such as, but not limited to, construction of
perimeter fence on the landholding, earth filling/dumping, earth
moving/digging, and quarrying.
• Other analogous activities.

CONDITIONAL NATURE
OF CONVERSION AUTHORITY
The issuance by the DAR of the authority for the change of use of an agricultural
land to a residential, commercial, or industrial use in accordance with Section 4
Par. (i) of E.O. No 129-A, Section 65 of R.A. No. 6657, as amended; Paragraph 13,
Section 3, Title XI of the Revised Administrative Code of 1987 (E.O. No. 292); and
with the rules and regulations on land use conversion issued by the DAR, as well
as the Land Use Conversion falling under Section 11 on Special Project
Undertakings as Critically Important Projects and Section 12 on Agro-Industry or
Agro-Industrial Undertakings are not to be construed as final grants. The
authority to change the use of the land from agricultural to a non-agricultural
purpose is conditional. It is subject to compliance by the registered owner and
grantee with the terms and conditions indicated in the Conversion Order, as well
as in Section 65 of R.A. No. 6657, as amended.

STATUTES AND IMPLEMENTING RULES
• Section 4, E.O. No. 129-A

• Section 65, R.A. No. 6657, as Amended
• DAR A.O. No. 1, Series of 2002
• DAR A.O. No. 3-A, Series of 2021

Agrarian Legal Services
Department of Agrarian Reform
Thank You.

January 13 - USec. Pangulayan (Updates in Agrarian Reform)

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

January 13 - USec. Pangulayan (Updates in Agrarian Reform)

Uploaded by

Copyright:

Available Formats

Mandatory Continuing Legal Education Program

ATTY. LUIS MEINRADO C. PAÑGULAYAN, MNSA, CESO I

UP Institute for the Administration of Justice, UP Law Center

“Updates in Agrarian Reform (Law as a Means of Social Control)”

Section 2, Article XII, 1987 Philippine Constitution

“Updates in Agrarian Reform (Law as a Means of Social Control)”

Sec. 4, Article XIII, 1987 Philippine Constitution

“Updates in Agrarian Reform (Law as a Means of Social Control)”

Sec. 1, Article XIII, 1987 Philippine Constitution

“Updates in Agrarian Reform (Law as a Means of Social Control)”

Felisa Ferrer vs. Carganillo, et al.

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

REPUBLIC ACT 9700, otherwise known as the

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

Section 3 RA 6657 As Amended

“Updates in Agrarian Reform (Law as a Means of Social Control)”

•Designed to lift the economic status of the

Section 3 RA 6657 As Amended

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

The DAR (and the PARC) shall have the power to

“Updates in Agrarian Reform (Law as a Means of Social Control)”

The DAR is vested with primary jurisdiction to determine

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

Lands not classified as mineral, forest, residential,

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

Section 3 RA 6657 As Amended

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

All other lands owned by the Government devoted

All private lands devoted to or suitable for

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

• Lands acquired by the State are distributed to qualified

“Updates in Agrarian Reform (Law as a Means of Social Control)”

• Qualified FBs are prohibited to transfer ownership of the

• FBs must cultivate and make the land productive

“Updates in Agrarian Reform (Law as a Means of Social Control)”

• DAR AO 1 s. 1989 applies to transfer of private agricultural

• DAR AO 8 s. 1995 applies to transfer of awarded lands

• MC 19 s. 1978 refers to transfer of lands covered by CLT in

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”

“Updates in Agrarian Reform (Law as a Means of Social Control)”