LCD REVIEWER IN AGRARIAN LAW AND SOCIAL LEGISLATION

ATTY. MA. PATRICIA P. RUALO-BELLO

AGRICULTURAL TENANCY LAW 1. the physical possession by a person of land devoted to

agriculture belonging to, or legally possessed by, another
Tips in using this reviewer: [ landholder]
2. for the purpose of production through labor of the former and of
1. This reviewer is patterned after Atty Bello’s Syllabus. the members of his immediate farm household;
3. in consideration of which, the landholder agrees:
2. this is not intended to substitute your Annotations, Case lists, and
a. to share the harvest with the tenant, or
codal provisions;
b. to pay a price certain or ascertainable, either in produce
3. Feel free to call my attention for any substantial or clerical error. or in money or both.
Hope this reviewer helps! 
Purpose
CONSTITUTIONALITY OF AGRARIAN REFORM LAW.
1. the essence of agricultural tenancy lies in the establishment of
Notes: owner-cultivator relationship and the economic family sized farm
as the basis of Philippine agriculture, and as a consequence,
1. Republic Act 1199 is a remedial legislation promulgated pursuant to the divert the landlord capital in agriculture to industrial
social justice precepts of the Constitution and in the exercise of the development
police power of the State to promote the common weal. 2. …to achieve a dignified existence for the small farmers free from
a. Its provisions do not impair the right of the landowner pernicious industrial restraints and practices;
to dispose or alienate his property or prohibit him to 3. …to make the small farmers more independent, self-reliant and
make such transfer or alienation; responsible citizens and a source of a genuine strength in our
b. They only provide that in case of transfer or in case of democratic society.
lease, as in the present case, the tenancy relationship
between the landowner and his tenant should be
TYPES OF AGRICULTURAL TENANCY
preserved in order to secure the well-being of the
tenant or protect him against unjustified dismissal from
- share
their landholdings.
- leasehold
2. The mere fact that the land is agricultural does not ipso facto make him
an agricultural lessee.
Name and describe the types of Agricultural tenancy.
3. The law provides conditions or requisites before he can qualify as one
and the land being agricultural is only one of them. Among others, the
Share tenancy Leasehold Tenancy
law is explicit in requiring the tenant and his immediate family to work
Exists whenever two (2) persons agree A person who, either personally, or with
the land.
on a joint undertaking for agricultural the aid of labor available from members
production wherein: of his immediate farm household:
What is agricultural tenancy?
1. one party furnishes the land 1. undertakes to cultivate a piece
Agricultural tenancy is:
and the other furnishes of agricultural land susceptible
labor; of cultivation by a single
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ATTY. MA. PATRICIA P. RUALO-BELLO

2. either or both contributes any
one or several items of
production;
3. the tenant cultivates the land
personally with the aid of labor
available from members of
the immediate farm household
Produce is divided between the
landholder ad the tenant in proportion
to the their contributions
Contrary to public policy
person, together with
members of his immediate
farm household; belong to or
legally possessed by, another;
2. the consideration of which is a
price which is certain or
ascertainable to the be paid by
the person cultivating the land
The price is either a percentage of the
production or in a fixed amount of
money or both.
Legal
4. …if the tenant produces two crops a year, separate rentals can be fixed
for each crop.
a. A fixed rental for both crops would be disadvantageous
i. To the tenant at harvest time of the palagad crop,
where the produce is lesser;
ii. To the landowner at harvest time of the the panahon
crop, where the produce is bigger.
5. If improvements that increase productivity were introduced on the farm
by the landowner he may demand for an increase in the rental
proportionate to the increase in production resulting from such
improvements.

Notes: 6. Difference between calendar and agricultural years

1. RA 1199 is a remedial legislation, pursuant to social justice in the exercise Calendar Year Agricultural year
of police power of the state. All crops produced in one calendar Every crop represents one year
2. Sec 46 (a) of RA 1199 fixes the consideration for use of the ricelands: year have to be added together
The average of the three of such The average of the three crops
FIRST CLASS LAND SECOND CLASS LAND years is the measure of should be used as basis to
Yields more than 40 cavans per Yields 40 cavans or less per productivity determine productivity
hectare hectare
Consideration is not more than Consideration is not more than 7. where the parties expressly stipulate the duration of the contract, the
25% of the average gross produce 20% of the average gross contract shall last in accordance with the stipulation of the parties.
produce
The amount of palay used as seed, and the costs of harvesting and 8. Where the parties omit or failed to stipulate the duration of the contract,
threshing of the past three normal harvests should first be deducted it shall be understood to last only during one agricultural year.
before determination the consideration.
Yield is computed upon the normal average harvest for the past three 9. While agricultural tenancy is not created where consent of the true and
preceding years. lawful owners is absent, this principle applies to a situation where an
untenanted farm land is cultivated without the owner’s knowledge, or
against his will.
3. the consideration declared by law, under sec 46 (a) as rentals for the use
of ricelands is computed on the basis of the past three normal a. This rule does not apply where the predecessor in
harvests, without any qualification. interest had already given consent.
b. The successors in interest are bound by that consent,
given that as they step into the shoes of the original
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ATTY. MA. PATRICIA P. RUALO-BELLO

landowner, they acquire not only rights but also 2.
obligations of the latter.
10. Absent a sharing agreement, no tenancy relationship could exist between
the landholder and the person purporting to be his tenant.
Absence of any of the essential elements in tenancy relations rule out the
argument that the relationship between parties is one of agricultural
tenancy.
ELEMENTS OF TENANCY RELATIONS

a. What transpired was that the plaintiff was made What are the basic elements of tenancy relations?
overseer of a piece of land to supervise application of
loans from those residing therein and was allowed to The essential requisites of a tenancy relationship are:
build his own home and plant specified plants without - the parties are the landowner and the tenant
being compensated. He was also free to clear and - the subject is agricultural land
plant the land as long as he wished. - there is consent ( only applies if the land is untenanted)
b. He had no sharing agreement with the landholder, nor - the purpose is agricultural production
was he obligated to pay any price certain to, nor share - there is sharing of harvests.
the produce with, the latter.
Notes:
DIFFERENCE OF AGRICULTURAL TENANCY WITH CIVIL LAW LEASE
1. all the elements must concur to create the tenancy relationship.
How is Agricultural Tenancy different from civil law lease?
2. a tenant is a person who by himself and/or with help from his immediate
Civil Law Lease Agricultural tenancy household cultivates the land belonging to another.
The lessee does not enjoy security a share or agricultural tenant under
of tenure RA 3844, is entitled to security of 3. an economic family-sized farm is an area of farmland that:
tenure over the landholding he a. permits efficient use of labor and capital resources of
works at the farm family to produce an income sufficient
The lessee can be ejected from the Not even expiration of any term b. to provide a modest standard of living that
land after the expiration of the term fixed in the leasehold contract will i. meet a farm family’s needs for food, clothing,
cause his ejectment from the shelter and education,
landholding. ii. with possible allowance for payment of yearly
instalments on the land and reasonable
reserves to absorb yearly fluctuations of
Notes:
income.
c. Hence, a miniscule portion of agricultural land does not
1. The fact that contracts of lease signed by the parties did not stipulate
make it a family size farm.
that the landholding should be cultivated by the petitioner indicates intent
to establish only a civil lease relationship.
4. the proviciano trait of sharing or patikim as a native way of expressing
gratitude does not create a tenancy relationship.
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ATTY. MA. PATRICIA P. RUALO-BELLO
a. The fact of sharing alone is not sufficient to establish
the tenancy relationship.
5. The legal possessor could install an agricultural lessee. Nothing in the law
requires the civil law lessee, usufructuary, or legal possessor have prior
authorization from the landowner.
6. The grounds for ejectment of an agricultural lessee are exclusive. No
other ground can justify the termination of the agricultural lease.
7. RA 3844 however, does not automatically authorize a civil law lessee to
employ a tenant without consent of the landowner.
a. The lessee must be so authorized, given that the right
to hire a tenant is basically a personal right of the
landowner, except as otherwise provided by law.
b. Sec 6 RA 3844 simply states the parties to an existing
contract of agricultural tenancy.
i. It does not state those who furnish the
landholding, either as owner, civil law lessee,
usufructuary, or legal possessor, are
automatically authorized to employ a tenant.
1. this presupposes that the civil lease
agreement is restrictive.
ii. Not even the owner himself is free to install a
tenant, as when his ownership or possession is
encumbered or subject to lien or condition
prohibiting the same.
8. a tenancy relationship cannot be presumed. There must be evidence to
prove the existence of the elements of the tenancy.
a. Claims that one is a tenant do not automatically give
rise to security of tenure
b. Allegations that an agricultural tenant tilled the land do
not make the case an agrarian dispute.
c. The principal factor in determining whether a tenancy
relationship exists is intent.
d. All the requisites must concur to create the tenancy
relationship.
9. Mere occupation and cultivation of agricultural land does not
automatically convert a tiller or worker into an agricultural tenant.
10. where a plot of land is inside a poblacion, it is presumed that the land is
residential, commercial or non-agricultural in nature
a. unless there is clearly preponderant evidence to it being
agricultural.
11. An agrarian case for ejectment of an agricultural lessee does not operate
to bar the general rule that ejectment cases survive the death of the
party.
12. Personal cultivation is defined as the cultivation by the lessee or lessor in
person and/or with the aid of labor from within his immediate household
i.e. members of the family of the lessee or lessor and other person who
are dependent on him for support and who usually help him in his
activities.
a. That a tenant or agricultural lessee for that matter
employs farm laborers to perform some aspects of farm
work does not preclude the existence of an
agricultural leasehold relationship
i. Provided an agricultural lessee does not leave
the entire process of cultivation in the hands of
the hired helpers.
b. A tenant or an agricultural lessee hiring farm laborers
on a temporary or occasional basis does not negate
the existence of the element of personal cultivation
essential in a tenancy or agricultural leasehold
relationship.
c. The agricultural lessee, in case of illness or temporary
incapacity i.e. lack of resources to buy a carabao, is
allowed to avail of services of laborers, incapacity being
any cause or circumstance which prevents the lessee
from fulfilling his contractual or other obligations.
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ATTY. MA. PATRICIA P. RUALO-BELLO
13. The personal cultivation cannot be given a restricted connotation to mean
a right personal and exclusive to either lessor or lessee.
a. In either case, the right extends to the members of the
lessors’ or lessees’ immediate family members.
14. The element of personal cultivation of the land or with aid of his farm
household is absent if the petitioner did not cultivate any part of the
landowner’s plantation either by himself or with the help of the overseer.
a. He was hired as a mere overseer, indicative of an
employer-employee relationship.
b. Since petitioner is an employee, and not a tenant, the
NLRC and not the court of industrial relation that has
jurisdiction to try and decide on the said case.
15. the element of personal cultivation is absent when the person purporting
to be a tenant hired other people to do all phases of farm household,
unless otherwise provided by law.
16. Absence of one element of does not make an occupant a de jure tenant.
a. Certificate of the BARC is merely preliminary or
provisional in character and does not bind the judiciary;
b. Certificate and the affidavits (which were not notarized)
do not show the elements of consent of the landowner
and sharing of harvest.
RIGHTS OF AGRICULTURAL LESSEE
- Security of tenure
- Pre-emption and redemption
- Disturbance compensation
- Right to homelot
SECURITY OF TENURE
RA 3844 § 7, 9, 10
Section 7. Tenure of Agricultural Leasehold Relation - The
agricultural leasehold relation once established shall confer upon the
agricultural lessee the right to continue working on the landholding
until such leasehold relation is extinguished. The agricultural lessee
shall be entitled to security of tenure on his landholding and cannot
be ejected therefrom unless authorized by the Court for causes herein
provided.
Section 9. Agricultural Leasehold Relation Not Extinguished by
Death or Incapacity of the Parties - In case of death or permanent
incapacity of the agricultural lessee to work his landholding:
 the leasehold shall continue between the agricultural
lessor and the person who can cultivate the
landholding personally, chosen by the agricultural
lessor within one month from such death or
permanent incapacity, from among the following:
o the surviving spouse;
o the eldest direct descendant by
consanguinity; or
o the next eldest descendant or descendants
in the order of their age:
 in case the death or permanent incapacity of the
agricultural lessee occurs during the agricultural year,
such choice shall be exercised at the end of that
agricultural year:
 in the event the agricultural lessor fails to exercise his
choice within the periods herein provided, the priority
shall be in accordance with the order herein
established.
 In case of death or permanent incapacity of the
agricultural lessor, the leasehold shall bind his legal
heirs.
Section 10. Agricultural Leasehold Relation Not Extinguished by
Expiration of Period, etc. - The agricultural leasehold relation under
this Code shall not be extinguished by mere expiration of the
term or period in a leasehold contract nor by the sale, alienation or
transfer of the legal possession of the landholding. In case the
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ATTY. MA. PATRICIA P. RUALO-BELLO
agricultural lessor sells, alienates or transfers the legal possession
of the landholding, the purchaser or transferee thereof shall be
subrogated to the rights and substituted to the obligations of the
agricultural lessor.
Notes:
1. Agricultural leasehold relation shall not be extinguished by mere expiration of
the term, nor by sale, alienation or transfer of legal possession of the
landholding
a. A transaction involving agricultural land over which
agricultural leasehold subsists resulting in a change of
ownership does not terminate the rights of the
agricultural lessee.
i. he is given protection by law by making such
rights enforceable against the transferee, or the
landowner’s successor in interest
ii. that the landowner entered into a civil lease
contract and gave the lessee authority to oversee
the farming did not cause the extinguishment of
the agricultural leasehold relation.
2. Agricultural leasehold relationship is not extinguished by the death or
incapacity of the parties.
a. in case the agricultural lessee dies or is incapacitated, the
leasehold relation shall continue between the agricultural
lessor and any of the heirs of the agricultural lessee who can
cultivate the land personally, in the order of preference
provided under §9 RA 3844, as chosen by the lessor within
one (1) month from such death or permanent incapacity.
3. a tenant’s right to be respected in his tenure under RA 1199, as amended is
an obligation of the landholder created by law
a. an action for violation thereof prescribes in ten years
pursuant to art 1144 of the Civil Code.
PRE-EMPTION AND REDEMPTION
§ 11, 12, 13, 14 RA 3844
Section 11. Lessee's Right of Pre-emption - In case the
agricultural lessor decides to sell the landholding, the agricultural
lessee shall have the preferential right to buy the same under
reasonable terms and conditions:
 the entire landholding offered for sale must be pre-
empted by the Land Authority if the landowner so desires,
unless the majority of the lessees object to such
acquisition:
 where there are two or more agricultural lessees, each
shall be entitled to said preferential right only to the
extent of the area actually cultivated by him.
 The right of pre-emption under this Section may be
exercised within ninety days from notice in writing
which shall be served by the owner on all lessees affected.
Section 12. Lessee's Right of Redemption - In case the
landholding is sold to a third person without the knowledge of
the agricultural lessee, the latter shall have the right to redeem the
same at a reasonable price and consideration:
 the entire landholding sold must be redeemed:
 where these are two or more agricultural lessees, each
shall be entitled to said right of redemption only to the
extent of the area actually cultivated by him.
 The right of redemption under this Section may be
exercised within two years from the registration of
the sale, and shall have priority over any other right of
legal redemption.
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ATTY. MA. PATRICIA P. RUALO-BELLO
Section 13. Affidavit Required in Sale of Land Subject to Right of
Pre-emption - No deed of sale of agricultural land under cultivation
by an agricultural lessee or lessees shall be recorded in the Registry
of Property unless accompanied by an affidavit of the vendor that
he has given the written notice required in Section eleven of this
Chapter or that the land is not worked by an agricultural lessee.
Section 14. Right of Pre-emption and Redemption Not Applicable
to Land to be Converted into Residential, Industrial and Similar
Purposes - The right of pre-emption and redemption granted under
Sections eleven and twelve of this Chapter cannot be exercised
over landholdings suitably located which the owner bought or holds
for conversion into residential, commercial, industrial or other
similar non-agricultural purposes:
 the conversion must be in good faith and is substantially
carried out within one year from the date of sale.
 Should the owner fail to comply with the above condition,
the agricultural lessee shall have the right to repurchase
under reasonable terms and conditions said landholding
from said owner within one year after the aforementioned
period for conversion has expired:
 the tenure of one year shall cease to run from the time
the agricultural lessee petitions the Land Authority to
acquire the land under the provisions of paragraph 11 of
Section fifty-one.
Notes:
1. in case the landholding is sold to a third person without
knowledge of the agricultural lessee, the agricultural lessee shall
have the right to redeem the land at a reasonable price and
consideration
2. however, [1] has the following requirements, to wit:
a. the redemptioner must be an agricultural lessee or
share tenant;
b. the land must have been sold by the owner to a third
party without prior written notice of the sale given to:
i. the lessee or lessees and
ii. the DAR
c. only the area cultivated by the agricultural lessee may
be redeemed;
d. the right of redemption must be exercised within 180
days from notice;
e. there must be an actual tender or valid consignation
of the entire amount which is reasonable price of the
land sought to be redeemed.
3. one could in fact be overseer of a parcel of land, supervising the
labourers therein, and receiving a fixed salary fro one’s services,
and at the same time, act as tenant farmer in another
landholding.
4. the right of redemption must be exercised within the specified
time limits.
DISTURBANCE COMPENSATION
§36 RA 3844
Section36. Possession of Landholding; Exceptions -
Notwithstanding any agreement as to the period or future
surrender, of the land, an agricultural lessee shall continue in the
enjoyment and possession of his landholding except when his
dispossession has been authorized by the Court in a judgment that
is final and executory if after due hearing it is shown that:
1. The agricultural lessor-owner or a member of his immediate
family will personally cultivate the landholding or will convert the
landholding, if suitably located, into residential, factory, hospital
or school site or other useful non-agricultural purposes:
a. the agricultural lessee shall be entitled to disturbance
compensation equivalent to five years rental on his
landholding in addition to his rights under Sections
twenty-five and thirty-four
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ATTY. MA. PATRICIA P. RUALO-BELLO
b. when the land owned and leased by the agricultural
lessor, is not more than five hectares, instead of
disturbance compensation the lessee may be entitled to
an advanced notice of at least one agricultural year
before ejectment proceedings are filed against him:
c. should the landholder not cultivate the land himself for
three years or fail to substantially carry out such
conversion within one year after the dispossession of
the tenant,
i. it shall be presumed that he acted in bad faith
ii. the tenant shall have the right to demand
1. possession of the land and
2. recover damages for any loss incurred
by him because of said
dispossessions.
2. The agricultural lessee failed to substantially comply with any of
the terms and conditions of the contract or any of the provisions
of this Code unless his failure is caused by fortuitous event or
force majeure;
3. The agricultural lessee planted crops or used the landholding for
a purpose other than what had been previously agreed upon;
4. The agricultural lessee failed to adopt proven farm practices as
determined under paragraph 3 of Section twenty-nine;
5. The land or other substantial permanent improvement thereon is
substantially damaged or destroyed or has unreasonably
deteriorated through the fault or negligence of the agricultural
lessee;
6. The agricultural lessee does not pay the lease rental when it falls
due: Provided, That if the non-payment of the rental shall be due
to crop failure to the extent of seventy-five per centum as a
result of a fortuitous event, the non-payment shall not be a
ground for dispossession, although the obligation to pay the
rental due that particular crop is not thereby extinguished; or
7. The lessee employed a sub-lessee on his landholding in violation
of the terms of paragraph 2 of Section twenty-seven.
Section 37. Burden of Proof - The burden of proof to show the
existence of a lawful cause for the ejectment of an agricultural
lessee shall rest upon the agricultural lessor.
Section 38. Statute of Limitations - An action to enforce any cause
of action under this Code shall be barred if not commenced within
three years after such cause of action accrued.
DAR AO No. 1 Series of 2002
SECTION 4. Areas Non-Negotiable for Conversion — An
application involving areas non-negotiable for conversion shall not
be given due course even when some portions thereof are eligible
for conversion. The following areas shall not be subject to
conversion:
 Lands within protected areas designated under the NIPAS,
including mossy and virgin forests, riverbanks, and swamp forests
or marshlands, as determined by the DENR;
 All irrigated lands, as delineated by the DA and/or the National
Irrigation Administration (NIA), where water is available to support
rice and other crop production, and all irrigated lands where water
is not available for rice and other crop production but are within
areas programmed for irrigation facility rehabilitation by the
government;
 All irrigable lands already covered by irrigation projects with firm
funding commitments, as delineated by the DA and/or NIA; and
 All agricultural lands with irrigation facilities.
SECTION 5. Areas Highly Restricted from Conversion — The
following areas/projects are classified as highly restricted from
conversion:
 Irrigable lands not covered by irrigation projects with firm funding
commitment;
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ATTY. MA. PATRICIA P. RUALO-BELLO
 Agro-industrial croplands, or lands presently planted to industrial
crops that support the economic viability of existing agricultural
infrastructure and agro-based enterprises;
 Highlands or areas located in elevations of five hundred (500)
meters or above and which have the potential for growing semi-
temperate or high value crops;
 Lands issued with notice of land valuation and acquisition, or
subject of a perfected agreement between the landowner and the
beneficiaries under the Voluntary Land Transfer (VLT)/Direct
Payment Scheme (DPS) under the CARP; and
 Lands within an Environmentally Critical Area (ECA) or those
involving the establishment of an Environmentally Critical Project
(ECP). Applications for conversion under this sub-section shall
require, apart from the standard, requirements, an Environmental
Compliance Certificate (ECC) which the applicant must secure from
the DENR prior to application (for ordinary applications) or prior to
commencement of actual land development (for applications
involving housing projects).
The Presidential Agrarian Reform Council (PARC) Land Use
Technical Committee (PLUTC) shall participate in the deliberations
when the application involves land that is highly restricted from
conversion and with an area larger than five (5) hectares, except
housing projects covered by EO-45-2001.
RIGHT TO A HOMELOT
Section 24. Right to a Home Lot - The agricultural lessee shall
have the right to continue in the exclusive possession and
enjoyment of any home lot he may have occupied upon the
effectivity of this Code, which shall be considered as included in the
leasehold.
Notes:
1. Tenancy Relationship arises between a landholder and a tenant
once they agree, expressly or impliedly, to undertake the
cultivation of a land belonging to the landholder, as a result of
which relationship the tenant acquires the right to continue
working on and cultivating the land.
2. Farm helpers do not have the rights enjoyed by the tenant i.e.
right to the home lot who sought for their assistance.
EXTINGUISHMENT OF TENANCY RELATIONS
- abandonment
- voluntary surrender
- absence of heir to succeed
Notes:
1. the agricultural leasehold relations is extinguished by:
a. abandonment of the landholding without the knowledge
of the agricultural lessor
b. voluntary surrender of the landholding by the
agricultural lessee, written notice of which served three
months in advance
c. absence of the persons to succeed to the lessee in the
event of death or permanent incapacity of the lessee
2. a person is not incapacitated to contract merely because of advanced
years or by reason of physical infirmities. It is only when such age or
infirmities impair the mental faculties to such extent as to prevent one
from property, intelligently and fairly protecting her property rights can
a person be considered incapacitated.
ABANDONMENT
1. the following are the requisites for abandonment:
a. a clear and absolute intention to renounce a right or
claim or to desert a right or property;
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b. an external act by which that intention is expressed by
carried into effect
2. There must be an actual, not projected, relinquishment. Otherwise the
right or claim is not vacated or waived.
a. AO No. 2 defines abandonment or neglect as:
i. Wilful failure of the agrarian reform
beneficiary, together with his farm household
to cultivate, till, or develop his land
1. to produce any crop
2. to use the land for any specific
economic purpose continuously for a
period of two years.
3. The intention to abandon implies a departure, with the avowed intent of
never returning, resuming or claiming the right and interest that have
been abandoned.
4. After executing the affidavit voluntarily wherein he made admissions
and declaration against his own interest under the solemnity of an oath,
he cannot be allowed to spurn down and unto what he has done.
5. The landholder ought to know if he has rights to protect as a tenant,
the landowner has rights under the law.
VOLUNTARY SURRENDER
1. Voluntary surrender, as a mode of extinguishing agricultural leasehold
tenancy relations must be convincingly and sufficient proved by the
competitive evidence.
2. the tenant’s intention to surrender the landholding cannot be
presumption, mush less determined by mere implication
3. As it was not shown why the tenant-farmers would voluntarily give up
their sole source of livelihood and that the money given to them is
advantageous, the Supreme Court ruled out the case of voluntary
surrender.
a. Tenancy relations cannot be bargained away except for
strong reasons provided by law which must be
convincingly shown by evidence in line with the state’s
policy of achieving a dignified existence for the small
farmers free from the pernicious institutional restraints
and practices.
DISPOSSESSION OF TENANTS ( EJECTMENT)
Notes:
1. if the non-payment of rentals were due to a poor harvest owing to an
extraordinary event or in an unusual act of God, the refusal to issue an
order of ejectment is justified.
2. however, if the non-payment of rentals takes place for several years
and the land normally has poor yield by reason of the conditions of its
soil, refusal to pay the rentals:
a. has the effect of authorizing the lessees to hold the land
for life, or at least indefinitely without giving the
landowner any share in its produce
b. deprives the landowner the enjoyment of the possession
and use of the thing owned, as well as the products
thereof, which is an attribute of ownership.
3. Our constitution do not countenance such result.
a. [3] amounts to a taking of private property for private
use and without compensation
b. The principle of social justice cannot be construed as to
violate the elementary principles of justice and bring
about patent injustice
c. If the land in dispute is as poor for agricultural purposes
as it is, the continuance of erring lessees would tend to
promote their precarious condition, instead of promoting
their well-being and security, which is the immediate
objective of social justice.
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4. Even if there was abandonment, the transfer of property may only be
made in favour of the heirs or the government
a. PD 27 prohibits the transfer of land granted to tenant-
farmers/farmers-beneficiaries, except in favour of heirs
via hereditary successions or in favour of the
government through other legal modes.
b. The prohibition is placed to insure their continuous
possession and enjoyment, to achieve a dignified
existence for small farmers, and to make them more
independent, self-reliant, and responsible citizens, and a
source of genuine strength in our democratic society.
5. a subsequent beneficiary cannot, by himself, take over farmer-
beneficiary’s landholding
a. the proper procedure for reallocation must be followed
to ensure that:
i. there was indeed an abandonment
ii. subsequent beneficiary is a qualified farmer-
tenant under the law.
b. it is the government who can effect the reallocation.
Hence the land must first be transferred back in favour
of the government.
DETERMINATION OF LEASE RENTALS
§ 34 RA 3844
Section 34. Consideration for the Lease of Riceland and Lands Devoted
to Other Crops –
1. The consideration for the lease of riceland and lands devoted to
other crops shall not be more than the equivalent of twenty-five
per centum of the average normal harvest during the three
agricultural years immediately preceding the date the leasehold
was established after deducting the amount used for seeds and
the cost of harvesting, threshing, loading, hauling and
processing, whichever are applicable:
2. if the land has been cultivated for a period of less than three
years, the initial consideration shall be based
a. on the average normal harvest during the preceding
years when the land was actually cultivated, or
b. on the harvest of the first year in the case of newly-
cultivated lands, if that harvest is normal:
3. after the lapse of the first three normal harvests, the final
consideration shall be based on the average normal harvest
during these three preceding agricultural years
4. In the absence of any agreement between the parties as to the
rental, the maximum allowed herein shall apply
5. if capital improvements are introduced on the farm not by the
lessee to increase its productivity, the rental shall be
increased proportionately to the consequent increase in
production due to said improvements. In case of
disagreement, the Court shall determine the reasonable increase
in rental.
§12 RA 6657
Section 12. Determination of Lease Rentals. — In order to
protect and improve the tenurial and economic status of the
farmers in tenanted lands under the retention limit and lands not
yet acquired under this Act, the DAR is mandated to determine and
fix immediately the lease rentals thereof in accordance with Section
34 of Republic Act No. 3844, as amended: provided, that the DAR
shall immediately and periodically review and adjust the
rental structure for different crops, including rice and corn,
or different regions in order to improve progressively the
conditions of the farmer, tenant or lessee.