I.

THE AGRARIAN REFORM LAW: Background and Purpose

The land is the only thing in the world worth working for, worth fighting for, worth dying for,
because it's the only thing that lasts"- Margarett Mitchell
Agriculture has been the dominant component of the Philippine economy absorbing almost one
half of the labor force while supplying basic foods like rice, corn, coconut, sugar, and others. It
provides income and livelihood to millions of farmers and their dependents mostly found in rural
countryside. Ironically, agriculture and poverty are linked with each other. This has been
manifested by the proportion of employed persons in agriculture against the incidence of poor
population across regions. Except NCR, Regions III and IV, all regions have at least one-fourth
of the population engaged in agriculture and had at least one third of the population considered
poor.
The harsh reality is that 75 percent of those 25 percent of Filipinos who are below the poverty
line are in the rural areas, many of them farmer beneficiaries of CARP which focused
excessively on land acquisition and distribution (LAD) instead of the goal of improving the
farmers standard of living. Despite the distribution of 4,542,968 hectares to over 2,653,254
Agrarian Reform Beneficiaries (ARBs), the income differences between the ARBs versus other
farmers resulted in a negligible 2 percent improvement over the half century covered. Another
tell-tale sign of the negative effect of CARP was a severe reduction in investment and credit
flowing into agriculture.1
The question whether or not the purpose of land reform has been addressed in the Philippines,
depends on ones actual experience with farmers, and on data taken from economic indicators.
Thus, the need for this paper.
II. Municipality of Oton, Iloilo
Oton is one of the 42 towns of Iloilo Province within Region VI. This 1st class
Municipality is composed of 37 barangays. It is 11 kilometers west away from the City of Iloilo
where existing ports, airports and major commercial centers is located. According to the 2015
census, it has a population of 89,115.
The Municipality of Oton has a total land area of 8644 hectares or 82.28% of the total
land area is devoted to agricultural crops, forests and agro-forestry area.
There are ten major crops identified in the municipality, namely: rice, corn, lowland vegetables,
highland vegetables, watermelon, coconut, sugar cane, highland fruit crops, banana, coffee, and
cut flowers. Oton town in Iloilo is considered the watermelon capital of the country. No less than
700 hectares are planted to this high-value crop every year in the town alone, according to Celsa
Sorongon Suarez, the municipal agriculturist. In addition the Oton watermelon farmers go out to
other towns and rent farms on which they also grow watermelon.

1 Land Reform in the Philippines by Bernando Villegas, accessed from

http://www.mb.com.ph/land-reform-in-the-philippines-part-i/

Eight hundred seventy one hectares and nine hundred ninety three square meters
(871.9593 Has.) are covered by CARP. This involved 1,240 farmer beneficiaries found in
different barangays of the Municipality.
The livestock and poultry farms are classified into commercial and semicommercial. The total area occupied by these farms is more less 7,404 sq. m. with the total value
of P2,780,800.00 and the total employment size of twenty eight.
In the field of fisheries, there are existing fish ponds or fish cages found in different
barangays owned by private persons. Genetically improved tilapia and African Hito are seeded in
the farms. The fishpond at Brgy. Buray by Jose Gerry Mansili occupies one hectare and is the
biggest in the municipality. It has the total value of P180,000.00. Also there are fishponds found
in different barangays like Poblacion, Santa Clara, San Nicholas, Bita Norte, San Antonio, Rizal,
Tuburan, Cadinglian and Pulo Maestra Vita. These cover a total value of production estimated at
P1,250,000.00.
Agricultural support facilities (Pre and Post-Harvest) available in the Municipality of
Oton are the following:
1. Irrigation Facilities NIA Dam located at Brgy. Botong covers 1,238 Has. SWIP at
Brgy. Galang covers 51 Has. SDD situated at Brgy. Lambunao covers 23 Has.
Commercial irrigation at Santa Rita covers 15 Has. and GIPA covers 106 Has. located at
Brgy. Rizal, Poblacion West,Salngan. STW and OSP covers 767 Has. in all barangays.
2. Farm to Market Roads covers 67,484 kilometers, with the total area covered of
4,820.5 sq. m. benefiting 2,992 farmers. These farm to market roads are rough roads and
need maintenance and improvement to enable all types of transportation to pass without
difficulty in hauling farm products.
3. Warehousing the municipality has three (3) rice mills with storage or warehouse
facilities including dryers (solar and mechanical). The warehouses can mill 20 cavans per
hour with a storage capacity of 36,000 cavans. The warehouse in Buray can mill 18
cavans per hour and has a storage capacity of 8,000 cavans. The rice mill in Santa Rita
could mill 14 cavans per hour with the storage capacity of 8,000 cavans
At present, there are agricultural facilities and other services extended to farmers. The
municipality has 2 agricultural and technical institutions serving the community. DATeC situated
in Brgy. San Matias has a breeding station at Brgy. Rizal and Poblacion, and Oton Family Farm
School located at Brgy. Buray offers technical assistance to farmers. The Municipal Agriculture
Office extends extension services to all farmers in the 33 barangays.
As to loan/credit services, the FMCI, Farmers Marketing Cooperative and LBK Private
Corporation extended more or less P17.8 million to farmer beneficiaries. These programs are
supervised, monitored and evaluated by the office of the Municipal Agriculturist through its
extension technologists.

Seminars are conducted by the office of the Municipal Agriculturist in coordination with
veterinary companies in the province and in the region to upgrade stocks. Artificial insemination
is conducted in cooperation with the Philippine Carabao Center (PCC) and other private farms.2
Recommendations
We have outlined a few recommendations in this paper that will help address specific problem
areas:
A. Support and Funding Mechanisms
The need for support and funding are the common denominator of all our respondents. This is
the problem encountered by farmer beneficiaries and farm tenants who do not have the means of
providing capital to make their land productive.
The problem stems from the fact that as farmer beneficiaries they have the obligation to
repay the government for the land, as leaseholders, the have the obligation to pay for the rental of
the land. As landowners, economic difficulties and indebtedness are the root cause.
Chapter XIV (Financing) of the CARP expressly states:
SECTION 63. Funding Source. The initial amount needed to
implement this Act for the period of ten (10) years upon approval hereof shall be
funded from the Agrarian Reform Fund created under Sections 20 and 21 of
Executive Order No. 229. Additional amounts are hereby authorized to be
appropriated as and when needed to augment the Agrarian Reform Fund in order to
fully implement the provisions of this Act. Sources of funding or appropriations
shall include the following: a) Proceeds of the sales of the Assets Privatization
Trust; b) All receipts from assets recovered and from sales of ill-gotten wealth
recovered through the Presidential Commission on Good Government; c) Proceeds
of the disposition of the properties of the Government in foreign countries; d)
Portion of amounts accruing to the Philippines from all sources of official foreign
grants and concessional financing from all countries, to be used for the specific
purposes of financing production credits, infrastructures, and other support
services required by this Act; cdt (e) Other government funds not otherwise
appropriated. All funds appropriated to implement the provisions of this Act shall
be considered continuing appropriations during the period of its implementation.

SECTION 64. Financial Intermediary for the CARP. The Land Bank of
the Philippines shall be the financial intermediary for the CARP, and shall insure
that the social justice objectives of the CARP shall enjoy a preference among its
priorities.

2 Land Use Plan of the Municipality of Oton, Iloilo

Funding and credit needs to be supervised. Mere lending without proper financial
management will bring the borrower farmer to financial ruin, and ultimately lose his land in the
process. The agrarian reform program should not just settle on its laurels after acquisition and
distribution of farm lands. It should now focus on helping farmers in making their lands
productive and helping them keep their land.
A system for government funded subsidy or incentive is also desired for private lending
institutions and a system of accountability for lending institutions that force unconscionable rates
and interests on farmer borrowers
B. Speedy Adjudication of Land Valuation and Distribution Cases
The Agrarian Reform Program is beset with a multitude of cases pending in agrarian
courts and in the appellate courts waiting for resolution. This is a battleground for landowners
and the DAR, and has caused severe injustice to many landowners. While the main purpose of
the agrarian law is on acquisition and equitable distribution of land to as many as possible, it
should also be just and speedy in terms of its compensation for those who lost their land.
Let us learn from the Japanese Agrarian Reform: Under Japan's 1946 land reform,
landlords who owned more than the permitted amount had to sell the excess land to the
government at a fixed price. The government then sold it at the same price, giving first
preference to any tenant who had been farming the land. Japans land reform succeeded for two
reasons. The first reason is that the Occupation had the power to impose and enforce a law that
hurt the interests of a very powerful class of people, wealthy landlords, in order to bring about
social and economic change. The second reason is more complex. At the time the land reform
law was passed in October, 1946, it provided reasonable compensation to the landlords who had
to sell their land to the government. 3
C. Incentive System Based on Land Productivity
An Incentive System Based on Land Productivity is desired by the authors of this paper. This
system aims at improving agricultural output of family sized farms through an incentive program
based on crops and agricultural land area farmed. This aims at positive and creative competition
among farmers as they will be challenged to produce more because of the incentive that will be
given.
Probable incentives are as follows: (1) Higher price per kilo for palay because of the
quality of grains that they produce, (2) discounted rates for fertilizers, agro chemicals, and seeds
(both hybrid and certified seeds), (3) rewards program that will allow them to own or rent farm
implements, machineries for agricultural production, among others, (4) acknowledgement among
peers by means of certificates and rewards, (5) opportunity to be able to travel and experience
similar high-producing farms in the country for exchange of knowledge and skills.

3 Why Japans Land Reform Succeeded.

http://www.crosscurrents.hawaii.edu/content.aspx?
lang=eng&site=japan&theme=work&subtheme=AGRIC&unit=JWORK099

This will not just benefit the farmers, but the entire agricultural sector as well. It creates a
new knowledge base on best practices in agriculture and farming.
D. Education and Skills Training
This aspect of the Agrarian Reform Law was nice on paper but lacked implementation.
The DAR and the DA are the lead agencies tasked to implement this in a continuous
andconsistent manner. The Education and Skills Training can best be achieved through tie-ups or
consortiums with State Universities such as the University of the Philippines and Western
Visayas State University. This allows for experts from the Agriculture Departments of UP, and
WESVARDEC of WVSU in partnership with technical persons from DAR and DA to work hand
in hand in creating education and training modules that will be meaningful and economically
feasible for specific farmers in specific areas.
Commitment and consistency are key elements in education and skills training. It is not
enough that they will be handed a seminar or a lecture, and then they go home. What is needed
is commitment by all sectors involved in providing adequate knowledge as tools for these
farmers so they may improve their lot from the increased economic benefits of farming.
E. A new law providing for the supervision, implementation, and monitoring of
agrarian lands for the purpose of increasing its productivity and enhanced
employment opportunities in the agriculture sector.

This desired law aims at preventing a return into landlordism. Now that the state has distributed
land, and within a few years most if not all shall be fully paid, and have passed the period
required to prevent them from selling their land, a return to landlordism may be possible. Also to
be considered is the growing population of the country and the need for residential spaces, this
law should also take into consideration the possibility of losing agricultural lands to conversion.
In the case of Japan, although by 1949, 1.76 million farms had been transferred to 4.7
million new owners, the process was deemed not fully secured. Additional legislation in the form
of the 1952 Agricultural Land Law concreted particular terms in order to prevent a return to
landlordism. It fixed both the definition of owner-cultivator and the market terms for the transfer
of farmland. Farmers could sell to other farmers but not to corporations. Mobility of agricultural
proprietors was hampered because residence relocation automatically invoked absenteeism and
hence mandatory purchase by the state. In addition, the Law entrenched the administrative
powers of the local agricultural committees.4
Bernardo Villegas in his article relayed that it was Dr. Ramon De Vera, who, based on the
famous scholarly paper of National Scientist Dr. Raul Fabella, former Dean of Economics of the
University of the Philippines, arrived at the conclusion that what fifty years of Philippine land
reform accomplished was to increase the number of landed poor. 5 What can one who has
land, but has no means to till it? There is one consequence, agrarian return, as coined by our
4 Reconsidering Land Reform and Agricultural Policy in Japan by Mark Stevenson
Curry, accessed from: http://openasia.asia/reconsidering-land-reform-andagricultural-policy-in-japan-1120

law professor Atty. Cirilo Yuro, Jr. Agrarian Return happens when a farmer-beneficiary becomes
incapable of tilling and making his land productive for economic or oppressive reasons agrees to
sell his land or his rights to another, particularly the former landlords as they have the better
means to manage and bring the lands to economic health. This situation is now going on. Unless
this is address, we will regress into the olden times where the few rich shall again re-acquire their
lands to the detriment of these farmer beneficiaries.
Provisions in the Agrarian Reform Law has loopholes allowing farmer beneficiaries to alienate,
and for prospective owners to acquire, either through sale, indebtedness or through a leasehold
scheme the distributed farm lands of the Agrarian Reform Program.
The desired law should have a system of supervising the distributed lands through
accurate database, monitoring and ensuring productivity of the lands. This prevents the intrusion
of prospective owners and corporations from taking over agrarian lands. The law should
contemplate on ways to prevent unintended developments from intruding into agrarian and
agricultural lands as these can hamper the agricultural productivity and lead to conversion of
farm lands into residential and commercial lands.
The urgency of the food security issue should be likewise addressed by provisions that
will protect farmers welfare and economic standing, and provide for support to ensure continued
productivity and economic viability of farmlands. As the need arises, the law shall provide the
state the power to provide incentives for needed crops whether for domestic consumption or for
export needs.
The law further should have its needed appropriation to enable it to run and sustain itself.
Provisions in the law enabling for a specific fraction from the national budget to help alleviate
and support the farmers and the agricultural sector.
Furthermore, the law should have provisions acknowledging the participation of private
investments in the implementation of the food security program, but shall not infringe on the
rights of farmers and shall protect the agriculture sector.
F. Enhanced Support of the Local Governement Units (LGUs)
Lastly, the local government units are key in assisting agrarian lands, its farmers,
landowners and stakeholders in creating a system of cooperation, support and sustainability.
Agriculture is a key area and should be a matter of national policy. The protection, preservation
and fulfillment of the rights of farmers and landowners should be an important agenda.
The vast resources of our country need to be honed for our economic progress and
industrialization. Through the local government units, they can provide the national government
with data to address concerns in policy making. The LGUs on the other hand shall be the eyes
5 Land Reform in the Philippines by Bernando Villegas, accessed from
http://www.mb.com.ph/land-reform-in-the-philippines-part-i/

and feet of the national government in implementing and assisting key units and agencies in
agriculture, and in the preservation of agrarian lands.
With proper administration, there is much to be gained. There will be the desired
sustainability and economic viability of agriculture. Food security will not remain a dream, but
can be realized with the proper means.

Problems encountered during excursion:

1. Circumvention of the law for personal gains
Vast tracks of agricultural land were abundant and available for coverage of the Agrarian
Reform Program during the early times of the program. However, as the landowners and
hacienderos learn of the plan of the government to subject their lands to the program and
be entitled to the retention limits, they somehow found a way to use the provisions and
retention limits to their advantage. One of these plans is to donate or sell their lands to
their children before the Committee for the Agrarian Reform survey lands for coverage.
It may seem that even though the lands are ought to be used for agricultural purposes, due
to economic and real estate developments, the landowners give much weight to economic
gains and profit, defeating the purpose of the program.
2. Processing of documents and titling of land is dragging
One of the major problems that we have encountered during our emersion is that only one
farmer-beneficiary that we have interviewed has been awarded a CLOA. Two of them are
listed as an agricultural lessee and in what we have talked about; they are processing their
documents for their CLOAs. However, when we asked what payment scheme they are
undergoing, they answered that they pay the landowner sacks of rice per year.
We have also discovered during our interview that one of the comments of the
beneficiaries is that the procedure in monitoring and assessment of lands covered are not
updated; they pointed out an example wherein the DAR officers will conduct an ocular
inspection and profiling of lands that would be covered in the program and it will take
some time until it reaches Land Bank and then again conduct its own ocular inspection

and assessment. Some encounter problems in updating their records, wherein the data
gathered by Land Bank is incongruent or does not match with the DARs findings in their
reports. This incongruence would result to the remand of the profile folders back to DAR
for further assessment. With this incident, farmers would usually incur additional
expenses due to the delay in processing of the titling of the lands.
3. Lack of initiative of farmer-beneficiaries
Farmer-beneficiaries are contented to be agsadors of the land that they till. As long as
they can provide for the daily necessities and cost of living of their family, they do not
aim to be granted with CLOAs. They would rather pay rent through sacks of rice to their
landowners and be contented with the arrangement rather than own the land and pay for
all the expenses like seedlings, fertilizers and cost of gathering the fruits.
The Lack of initiative from farmer beneficiaries has been associated with the lack of
confidence with the government and its drive for the implementation of the program and
its services. Further, it is the plight of farmers that the Government lacks ardent
implementation if not inaction on their part.

4. Lack of information dissemination

The support-services that were made available by the government are not made known to
the farmer-beneficiaries because of lack of communication and information
dissemination. Only those who have close relations to the implementing agencies and
local government units avail of these services since they are the only ones who knew of
the said available programs.
The medium for disseminating information about services may be influenced by the
location of the farmers. For instance, where their lands are situated and where they reside.
It is not all the time that farmers are to pass and drop by the Barangay Hall or the
Agrarian Reform Office.
5. Maro assigned to multiple municipalities
The MARO is assigned to Oton, Tigbauan, Miag Ao, Guimbal, San Joaquin, Tubungan,
Igbaras because of the many responsibilities that is assigned to her, she could not cope up
with the duties.
6. Coordinating Agencies - DA - Seedlings, purchased instead of free

The government offers free seedlings and fertilizers to farmers as part of their programs.
Due to lack of proper information dissemination and close relations, only the chosen few
were able to avail of said services.

RECOMMENDATIONS:
Please refer to Recommendations A, B, C, D and F except E

Added recommendations:
To help the MARO with her work, we recommend that the DAR conduct a seminar that would
explain and share with the existing employees the nature of the work of the MARO. If interested,
they could apply to be part of the skeletal system of the Municipal Office of DAR so that they
could help the MARO in the implementation of the program and support services. As we have
cited in our analyses, the MARO handles seven (7) municipalities. With the bulk of work that she
handles, she cannot fully implement and do the tasks assigned to her. She is no superwoman to
be able to cope up with the demands of her work.

VI.

CONCLUSION

Agrarian reform remains an unfinished business under the 1987 Philippine Constitution.
As a key social justice mechanism, CARP and CARPER have yet to fulfill their promise. Article
XII, Section 4 of the Constitution provides that the State shall, by law, undertake an agrarian
reform program founded on the right of farmers and regular farm workers, who are landless, to
own directly or collectively the lands they till or, in the case of other farm workers, to receive a
just share of the fruits thereof.
According to DAR, as of end-2013, the official land acquisition and distribution balance
is a total of 790,671 hectares from 80,867 landholdings. This means that the department needs to
distribute 197,667.8 hectares per month from March to June 30, 2014 to stick to the deadline.

There are still 206,536 hectares of lands with no Notices of Coverage (NOCs). The Notices of
Coverage kicks off the land distribution process for private agricultural lands under compulsory
acquisition, which is now the main mode of acquisition under CARPER. This landholdings
comprise the bulk of remaining lands to be distributed470,274 hectares of lands or 60 percent
of the total land distribution balance.
Further, coconut, rice and sugar cane lands comprise more than two-thirds of lands that
still need to be distributed under CARPER. Based on DARs figures, as of January 2013, there
are 262,524 hectares of coconut lands, 178,690 hectares of rice lands and 145,802 hectares
planted to sugarcane that are up for distribution.
Unfortunately, the national land reform program is now at a dire state, ultimately, as a
result of DARs halfhearted commitment to act decisively for the interests of its primary
constituencysmall, landless farmers. CARP is on the verge of death at the hands of the present
DAR, under Secretary Virgilio delos Reyes. Delos Reyes promised to distribute more than 1.2
million hectares of lands, targeting 200,000 for 2011; 180,000 hectares for 2012; 260,000
hectares for 2013; and 200,000 hectares for 2014. This leaves around as much as 360,000
hectares of undistributed land or 30 percent of the total balance by June 2014.