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AGRARIAN LAW - NOTES
o RA 7881, 7905, 8532, 9700 – amended CARL o Natalia claimed that the land was no longer covered by CARL because
the PD converted the land to a town site reservation and was therefor
MEANING OF AGRARIAN REFORM2 no longer agricultural land
Physical redistribution of lands and the totality of factors and support services HELD: Undeveloped portions of Natalia properties are NOT covered by the
designed to lift the economic status of beneficiaries andall other arrangements CARL because they are NOT agricultural land. Agricultural land does NOT
alternative to the physical redistribution of the lands, such as include commercial, industrial or residential land.
o production or profit sharing,
o labor administration, and CONSTITUTIONALITY OF CARP – valid exercise of police power
o distribution of shares of stock,
Allows them to receive a just share of the fruits of the lands they work Section 2. Declaration of Principles and Policies.
Regardless of crop or fruits produced to farmers and regular farmers who are
landless and irrespective of tenurial arrangement It is the policy of the State to pursue a Comprehensive Agrarian Reform Program
(CARP). The welfare of the landless farmers and farmworkers will receive the
REASON FOR ALTERNATIVES TO LAND DISTRIBUTION - Confining agrarian highest consideration to promote social justice and to move the nation toward
reform to land distribution is not feasible because there is not enough agricultural sound rural development and industrialization, and the establishment of owner
land to be distributed to every farmer or regular farm workers cultivatorship of economic-size farms as the basis of Philippine agriculture.
CARL APPLIES ONLY TO AGRICULTURAL LAND – Lands The State shall promote industrialization and full employment based on sound
Devoted to agricultural activities agricultural development and agrarian reform, through industries that make full and
Arable and suitable for farming efficient use of human and natural resources, and which are competitive in both
domestic and foreign markets: Provided, That the conversion of agricultural lands
CARL DOES NOT APPLY TO: (CRIM-F) into industrial, commercial or residential lands shall take into account, tillers' rights
1. Commercial Land and national food security. Further, the State shall protect Filipino enterprises
2. Residential Land against unfair foreign competition and trade practices.
3. Industrial Land
4. Mineral Land The State recognizes that there is not enough agricultural land to be divided and
5. Forest Land distributed to each farmer and regular farmworker so that each one can own
his/her economic-size family farm.
NATALIA REALTY DEV V. DAR(townsite reservation not agricultural land) This being the case, a meaningful agrarian reform program to uplift the lives and
Landowner: Natalia Realty Inc. economic status of the farmer and his/her children can only be achieved through
PD 1637 - Proclaimed 20,312 hectares of land as town site reservation, part simultaneous industrialization aimed at developing a self-reliant and independent
of which was the land of Natalia national economy effectively controlled by Filipinos.
o Antipolo, Montalban, San Mateo
o Reason: population overspill in the metropolis To this end, the State may, in the interest of national welfare or defense, establish
Private landowners were allowed to develop properties into low cost housing and operate vital industries.
subdivisions with reservation
A more equitable distribution and ownership of land, with due regard to the rights
Natalia was allowed by HLURB to develop land into a subdivision
of landowners to just compensation, retention rights under Section 6 of Republic
CARL then took effect 9 years later (June 15 1988)
Act No. 66573, as amended, and to the ecological needs of the nation, shall be
Natalia sought to cancel DAR’s Notice of Coverage on undeveloped portions undertaken to provide farmers and farmworkers with the opportunity to enhance
of the subdivision
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Section 3 Comprehensive Agrarian Reform Program
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AGRARIAN LAW - NOTES
their dignity and improve the quality of their lives through greater productivity of
agricultural lands. The State shall protect the rights of subsistence fishermen, especially of local
communities, to the preferential use of communal marine and fishing resources,
The agrarian reform program is founded on the right of farmers and regular both inland and offshore. It shall provide support to such fishermen through
farmworkers, who are landless, to own directly or collectively the lands they till or, appropriate technology and research, adequate financial, production and
in the case of other farmworkers, to receive a just share of the fruits thereof. marketing assistance and other services. The State shall also protect, develop and
conserve such resources. The protection shall extend to offshore fishing grounds
To this end, the State shall encourage and undertake the just distribution of all of subsistence fishermen against foreign intrusion. Fishworkers shall receive a just
agricultural lands, subject to the priorities and retention limits set forth in this Act, share from their labor in the utilization of marine and fishing resources.
taking into account ecological, developmental, and equity considerations, and
subject to the payment of just compensation. The State shall be guided by the principles that land has a social function and land
ownership has a social responsibility. Owners of agricultural land have the
The State shall respect the right of small landowners, and shall provide incentive obligation to cultivate directly or through labor administration the lands they own
for voluntary land-sharing. and thereby make the land productive.
As much as practicable, the implementation of the program shall be community- The State shall provide incentives to landowners to invest the proceeds of the
based to assure, among others, that the farmers shall have greater control of agrarian reform program to promote industrialization, employment and privatization
farmgate prices, and easier access to credit. of public sector enterprises. Financial instruments used as payment for lands shall
contain features that shall enhance negotiability and acceptability in the
The State shall recognize the right of farmers, farmworkers and landowners, as marketplace.
well as cooperatives and other independent farmers’ organizations, to participate
in the planning, organization, and management of the program, and shall provide The State may lease undeveloped lands of the public domain to qualified entities
support to agriculture through appropriate technology and research, and adequate for the development of capital-intensive farms, and traditional and pioneering crops
financial, production, marketing and other support services. especially those for exports subject to the prior rights of the beneficiaries under this
Act.
The State shall recognize and enforce, consistent with existing laws, the rights of
rural women to own and control land, taking into consideration the substantive PRIMARY OBJECTIVE OF AGRARIAN REFORM
equality between men and women as qualified beneficiaries, to receive a just Breakup agricultural lands to transform them into economic size farms to be
share of the fruits thereof, and to be represented in advisory or appropriate owned by farmers themselves, to uplift their economic status.
decision-making bodies. These rights shall be independent of their male relatives Founded on the right of landless farmers and landless regular farm workers to
and of their civil status. directly or collectively own the lands they till or in case of farm workers, to
receive a just share in fruits thereof.
The State shall apply the principles of agrarian reform, or stewardship, whenever Does not guarantee improvement in lives of the agrarian reform beneficiaries,
applicable, in accordance with law, in the disposition or utilization of other natural but it merely provides for possibility of favorable chance of uplifting economic
resources, including lands of the public domain, under lease or concession, status of the agrarian reform beneficiaries
suitable to agriculture, subject to prior rights, homestead rights of small settlers
and the rights of indigenous communities to their ancestral lands. MEANING OF ECONOMIC FAMILY SIZE FARM - area of farm land that permits
efficient use of labor and capital resources of the farm family and will produce a
The State may resettle landless farmers and farm workers in its own agricultural sufficient income to provide for (MIR)
estates, which shall be distributed to them in the manner provided by law. Modest standard of living to meet a farm family’s needs for food, clothing,
shelter and education with
By means of appropriate incentives, the State shall encourage the formation and Possible allowance for payment of yearly installments on land and
maintenance of economic-size family farms to be constituted by individual Reasonable reserves to absorb yearly fluctuations in income
beneficiaries and small landowners.
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AGRARIAN LAW - NOTES
Lands actually, directly and exclusively used and found to be necessary for Provided, however, that in case the area selected for retention by the
o National defense landowner is tenanted,
o School sites and campuses o tenant shall have the option to choose whether to
o Experimental farm stations operated for educational purposes remain in retained area
o Seeds and seedling research and pilot production center he shall be considered a leaseholder and shall lose
o Church sites and convents appurtenant thereto his right to be a beneficiary
o Mosque sites and Islamic centers appurtenant thereto be a beneficiary in the same or another agricultural land with
o Communal burial grounds and cemeteries similar or comparable features.
o Penal colonies and penal farms actually worked by the inmates he loses his right as a leaseholder to the land retained
o Research and quarantine centers by the landowner.
o All lands with 18% slope and over o The tenant must exercise this option within a period of (1) year from
except those already developed. time the landowner manifests his choice of the area for retention.
In all cases, the security of tenure of the farmers or farmworkers on the land
Section 5. Schedule of Implementation. — The distribution of all lands covered prior to the approval of this Act shall be respected.
by this Act shall be implemented immediately and completed within ten (10) years Upon the effectivity of this Act, any sale, disposition, lease, management,
from the effectivity thereof. contract or transfer of possession of private lands executed by the original
landowner in violation of the Act shall be null and void: provided,
IMPLEMENTATION EXTENDED BY RA 9700 to JUNE 30, 2014 However, that those executed prior to this Act shall be valid only when
registered with the Register of Deeds within a period of three (3) months after
Section 6. Retention Limits. the effectivity of this Act.
Except as otherwise provided in this Act, no person may own or retain, directly o Thereafter, all Registers of Deeds shall inform the Department of
or indirectly, any public or private agricultural land, Agrarian Reform (DAR) within thirty (30) days of any transaction
o the size of which shall vary according to factors governing a viable involving agricultural lands in excess of five (5) hectares.
family-size farm, such as
commodity produced, RETENTION RIGHT OF LANDOWNER
terrain, Landowner has right to retain not more than 5 hectares of his landholdings
infrastructure, and o maximum retention of 5 hectares
soil fertility as determined by the Presidential Agrarian Reform Retained area does not have to be personally cultivated by the landowner
Council (PARC) created hereunder, o Cultivation can be done indirectly through labor administration
But in no case shall retention by the landowner exceed five (5) hectares.
Three (3) hectares may be awarded to each child of the landowner, subject to LANDOWNER WHO ALREADY EXERCISED RETENTION RIGHTS UNDER PD
the following qualifications: ( 274CANT EXERCISE RETENTION RIGHTS UNDER CARP
o he is at least fifteen (15) years of age; and ( If landowner chooses to retain 5 hectares under CARL, 7 hectares previously
o he is actually tilling the land or directly managing the farm: retained under PD 27 shall be immediately placed under CARP.
Provided, that landowners whose lands have been covered by Presidential
Decree No. 27 shall be allowed to keep the areas originally retained by them CAN SPOUSES RETAIN 5 HECTARES EACH UNDER THE AGRARIAN
thereunder: REFORM LAW
Provided, further, that original homestead grantees or their direct compulsory Conjugal or Absolute Community – spouses can only retain 5 hectares
heirs who still own the original homestead at the time of the approval of this Separation of property – spouses can retain 5 hectares each or a total of 10
Act shall retain the same areas as long as they continue to cultivate said
homestead.
The right to choose the area to be retained, which shall be compact or 4
DECREEING EMANCIPATION OF TENANTS FROM BONDAGE OF SOIL, TRANSFERRING TO
contiguous, shall pertain to the landowner THEM OWNERSHIP OF LAND THEY TILL AND PROVIDING INSTRUMENTS AND MECHANISM
THEREFOR
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AGRARIAN LAW - NOTES
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AGRARIAN LAW - NOTES
relation because the leasehold continues between agricultural lessor and o CARL Sec 6 - that original homestead grantees or their direct
person who can cultivate the landholding personally compulsory heirs who still own the original homestead at the time of
Agricultural leasehold is not terminated or extinguished by mere expiration of the approval of this Act shall retain the same areas as long as they
the term or period in a leasehold contract continue to cultivate said homestead
Not terminated by transfer of ownership or legal possession of the landholding Agrarian Reform is a remedial measure pursuant to social justice precept of
o if agricultural lessor transfers ownership or legal possession of the Constitution but it was not meant to defeat the very purpose of the
landholding, transferee becomes agricultural lessor enactment of CA 141/ Homestead Act
o enacted for welfare and protection of the poor
EFFECT IF THE TENANT CHOOSES TO BE A BENEFICIARY - Tenant loses his o Gives a needy citizen a piece of land where he may build a modest
right to be a lessee of the land retained by the landowner house for himself and family and plant what is necessary for
substinence and satisfaction of life’s other needs
CHILDREN OF THE LANDOWNER ARE ENTITLED TO 3 HECTARES EACH Owners or direct compulsory heirs of lands acquired through homestead
if landowner owns more than 5 hectares of agricultural land, excess area may grants of Free Patents under CA 141 or the Homestead Act are entitled to
be awarded to children of landowner to extent of 3 hectares for each child retain the entire area even if it exceeds 5 hectares as long as
under the following conditions o they were cultivating the same at the time of approval of CARL June
o child is at least 15 years 15 1988
o child is actually tilling the land or directly managing the farm o continue to cultivate the same
Qualified child who owns less than 5 hectares is still entitled to an award of his
parents landholding provided that his total area including the awarded area SEC. 6-A. Exception to Retention Limits.
does not exceed the 5 hectares ownership ceiling Provincial, city and municipal government ,units acquiring private agricultural
o ex. Child already owns 3 hectares of agricultural land, he can still be lands by expropriation or other modes of acquisition to be used for actual,
awarded 2 hectares from his parents landholding . direct and exclusive public purposes, such as roads and bridges, public
Land awarded to qualified children of landowners cannot be sold, transferred, markets, school sites, resettlement sites, local government facilities, public
conveyed within a period of 10 years except parks and barangay plazas or squares, consistent with the approved local
o Hereditary succession comprehensive land use plan, shall not be subject to the five (5)-hectare
o To the government retention limit under this Section and Sections 70 and 73(a) of Republic Act
o land Bank of the Philippines No. 6657, as amended:
o other qualified beneficiaries Provided, That lands subject to CARP shall first undergo the land acquisition
Children or spouse can repurchase land from government or land bank within and distribution process of the program:
2 years from date of transfer Provided, further, That when these lands have been subjected to
expropriation, the agrarian reform beneficiaries therein shall be paid just
RIGHT OF HOMESTEADERS5 VIS A VIS RIGHT OF TENANTS compensation."
Constitution and CARL respect the superiority of rights of homesteaders over
rights of tenants EXPROPRIATION OF PRIVATE AGRICULTURAL LANDS BY LGUS - if LGU
o Art 13 Sec 6 - The State shall apply the principles of agrarian reform or expropriates private agricultural land for actual, direct and exclusive public
stewardship, whenever applicable in accordance with law, in the purposes, DAR should first subject it to agrarian reform coverage
disposition or utilization of other natural resources, including lands of land should first be acquired by the national government through DAR
the public domain under lease or concession suitable to agriculture, DAR will pay just compensation to landowner
subject to prior rights, homestead rights of small settlers, and the Thereafter, DAR will distribute the land to agrarian reform beneficiaries
rights of indigenous communities to their ancestral lands. after distribution, LGs will expropriate the land and pay the agrarian reform
beneficiaries just compensation
5
a mode of acquiring alienable and disposable lands of the public domain for agricultural purposes SEC. 6-B. Review of Limits of Land Size.
conditioned upon actual cultivation and residence
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AGRARIAN LAW - NOTES
Within (6) months from the effectivity of this Act, the DAR shall submit a thereon; all lands foreclosed by government financial institutions; all
comprehensive study on the land size appropriate for each type of crop to lands acquired by the Presidential Commission on Good Government
Congress for a possible review of limits of land sizes provided in this Act." (PCGG); and all other lands owned by the government devoted to or
IMPORT OF THE LAW suitable for agriculture, which shall be acquired and distributed
implied recognition that uniform setting of 5 hectare limit for all agricultural immediately upon the effectivity of this Act, with the implementation to
landholding may not be feasible because of the economic differences for each be completed by June 30, 2012;
agricultural products Phase Two:
lands planted to different crops cannot be treated identically o (a) Lands twenty-four (24) hectares up to fifty (50) hectares shall
likewise be covered for purposes of agrarian reform upon the
Section 7. Priorities. effectivity of this Act. All alienable and disposable public agricultural
The DAR, in coordination with the Presidential Agrarian Reform Council lands; all arable public agricultural lands under agro-forest, pasture
(PARC) shall plan and program the final acquisition and distribution of all and agricultural leases already cultivated and planted to crops in
remaining unacquired and undistributed agricultural lands from the effectivity of accordance with Section 6, Article XIII of the Constitution; all public
this Act until June 30, 2014. Lands shall be acquired and distributed as follows: agricultural lands which are to be opened for new development and
Phase One: resettlement: and all private agricultural lands of landowners with
o During the (5)-year extension period hereafter all remaining lands aggregate landholdings above twenty-four (24) hectares up to fifty (50)
above fifty (50) hectares shall be covered for purposes of agrarian hectares which have already been subjected to a notice of coverage
reform upon the effectivity of this Act. issued on or before December 1O, 2008, to implement principally the
o All private agricultural lands of landowners with aggregate rights of farmers and regular farmworkers, who are landless, to own
landholdings in excess of fifty (50) hectares which have already been directly or collectively the lands they till, which shall be distributed
subjected to a notice of coverage issued on or before December 10, immediately upon the effectivity of this Act, with the implementation to
2008; be completed by June 30, 2012; and
o rice and corn lands under Presidential Decree No. 27; all idle or o All remaining private agricultural lands of landowners with aggregate
abandoned lands; all private lands voluntarily offered by the owners for landholdings in excess of twenty-four (24) hectares, regardless as to
agrarian reform: whether these have been subjected to notices of coverage or not, with
o Provided, That with respect to voluntary land transfer, only those the implementation to begin on July 1, 2012 and to be completed by
submitted by June 30, 2009 shall be allowed June 30, 2013;
o Provided, further, That after June 30, 2009, the modes of acquisition Phase Three: All other private agricultural lands commencing with large
shall be limited to voluntary offer to sell and compulsory acquisition: landholdings and proceeding to medium and small landholdings under the
o Provided, furthermore, That all previously acquired lands wherein following schedule:
valuation is subject to challenge by landowners shall be completed o (a) Lands of landowners with aggregate landholdings above ten (10)
and finally resolved pursuant to Section 17 of Republic Act No. 6657, hectares up to twenty- four (24)hectares, insofar as the excess
as amended: hectarage above ten (10) hectares is concerned, to begin on July
o Provided, finally, as mandated by the Constitution, Republic Act No. 1,2012 and to be completed by June 30, 2013; and
6657, as amended, and Republic Act No. 3844,as amended, only o (b) Lands of landowners with aggregate landholdings from the
farmers (tenants or lessees) and regular farmworkers actually tilling retention limit up to ten (10) hectares, to begin on July 1, 2013 and to
the lands, as certified under oath by the Barangay Agrarian Reform be completed by June 30, 2014; to implement principally the right of
Council (BARC) and attested under oath by the landowners, are the farmers and regular farmworkers who are landless, to own directly or
qualified beneficiaries. collectively the lands they till.
o The intended beneficiary shall state under oath before the judge of the The schedule of acquisition and redistribution of all agricultural lands covered
city or municipal court that he/she is willing to work on the land to by this program shall be made in accordance with the above order o f priority,
make it productive and to assume the obligation of paying the which shall be provided in the implementing rules to be prepared by the PARC,
amortization for the compensation of the land and the land taxes taking into consideration the following: the landholdings wherein the farmers
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AGRARIAN LAW - NOTES
are organized and understand ,the meaning and obligations of farmland Coverage on or before Dec 10 2008
ownership; the distribution of lands to the tillers at the earliest practicable time; rice and corn lands
the enhancement of agricultural productivity; and the availability of funds and idle or abandoned lands
resources to implement and support the program: Provided, That the PARC any agricultural land not cultivated, tilled or developed
shall design and conduct seminars, symposia, information campaigns, and to produce any crop not devoted to any specific
other similar programs for farmers who are not organized or not covered by economic purpose continuously for a period of 3 years
any landholdings. Completion by these farmers of the aforementioned immediately prior to receipt of notice of acquisition by
seminars, symposia, and other similar programs shall be encouraged in the government
implementation of this Act particularly the provisions of this Section. o does not include land that has permanently or
Land acquisition and distribution shall be completed by June 30, 2014 on a regularly devoted to non agricultural purposes
province-by- province basis. In any case, the PARC or the PARC Executive o does not include land that has becom
Committee (PARC EXCOM), upon recommendation by the Provincial Agrarian unproductive due to force majeure or any
Reform Coordinating Committee (PARCCOM), may declare certain provinces other fortuitous event provided that prior to
as priority land reform areas, in which case the acquisition and distribution of such event, land was used for agricultural or
private agricultural lands therein under advanced phases may be implemented other economic purpose
ahead of the above schedules on the condition that prior phases in these private lands voluntarily offered by owners for agrarian reform
provinces have been completed: Provided, That notwithstanding the above lands foreclosed by government financial institutions
schedules, phase three (b) shall not be implemented in a particular province lands acquired by Presidential Commission on Good
until at least ninety percent (90%) of the provincial balance of that particular Government
province as of January 1, 2009 under Phase One, Phase Two (a), Phase Two all other lands owned by government devoted to or suitable for
(b),,and Phase Three (a), excluding lands under the jurisdiction of the agriculture
Department of Environment and Natural Resources (DENR), have been o Lands with an area of 24 hectares up to 50 hectares to be complete by
successfully completed. June 30 2013
The PARC shall establish guidelines to implement the above priorities and all alienable and disposable public agricultural lands
distribution scheme, including the determination of who are qualified all arable public agricultural lands under agroforest, pasture
beneficiaries: Provided, That an owner-tiller may be a beneficiary of the land and agricultural leases already cultivated and planted to crops
he/she does not own but is actually cultivating to the extent of the difference in accordance in Sec 6 Art 13 of the Consti
between the area of the land he/she owns and the award ceiling of three (3) all public agricultural lands which are to be opened for new
hectares: Provided, further, That collective ownership by the farmer development and resettlement
beneficiaries shall be subject to Section 25 of Republic Act No. 6657, as all private agricultural lands which have already been
amended: Provided, furthermore, That rural women shall be given the subjected to a notice of coverage issued on or before Dec 10
opportunity t o participate in the development planning and implementation of 2008
this Act: Provided, finally, That in no case should the agrarian reform all remaining private agricultural lands regardless as to
beneficiaries' sex, economic, religious, social, cultural and political attributes whether they have been subjected to notices of coverage
adversely affect the distribution of lands." o Lands with an area of more than 10 hectares up to 24 hectares to be
completed by June 30 2013
ACQUISITION AND DISTRIBUTION SCHEME FOR ALL REMAINING o Lands from retention limit up to 10 hectares to be complete by June 30
AGRICULTURAL LANDS DURING 5 YEAR EXTENSION PERIOD UP TO JUNE 2013
30 2014 Farmer (tenants or lessees) and regular farmworkers actually tilling the
Order of Priority landsare considered to be qualified beneficiaries only if
o Lands with area of more than 50 hectares to be complete by June 30 o certified under oath by the Barangay Agrarian Reform Council and
2012 o attested under oath by landowners
those which already have been subjected to a Notice of o Intended beneficiary shall state under oath before judge of city of
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AGRARIAN LAW - NOTES
municipality court that he is willing to work on the land to make it August 29, 1987, or otherwise, upon its valid termination, whichever comes
productive and to assume obligation of paying amortization for sooner, but not later than after ten (10) years following the effectivity of the Act.
compensation of land and land taxes thereon However during the said period of effectivity, the government shall take steps
to acquire these lands for immediate distribution thereafter.
Section 8. Multinational Corporations. In general, lands shall be distributed directly to the individual worker-
All lands of the public domain leased, held or possessed by multinational beneficiaries.
corporations or associations, and other lands owned by the government or by In case it is not economically feasible and sound to divide the land, then they
government-owned or controlled corporations, associations, institutions, or shall form a workers' cooperative or association which will deal with the
entities, devoted to existing and operational agri-business or agro-industrial corporation or business association or any other proper party for the purpose
enterprises, operated by multinational corporations and associations, shall be of entering into a lease or growers agreement and for all other legitimate
programmed for acquisition and distribution immediately upon the effectivity of purposes. Until a new agreement is entered into by and between the workers'
this Act, with the implementation to be completed within three (3) years. cooperative or association and the corporation or business association or any
Lands covered by the paragraph immediately preceding, under lease, other proper party, any agreement existing at the time this Act takes effect
management, grower or service contracts, and the like, shall be disposed of as between the former and the previous landowner shall be respected by both the
follows: workers' cooperative or association and the corporation, business, association
o Lease, management, grower or service contracts covering such lands or such other proper party.n no case shall the implementation or application of
covering an aggregate area in excess of 1,000 hectares, leased or this Act justify or result in the reduction of status or diminution of any benefits
held by foreign individuals in excess of 500 hectares are deemed received or enjoyed by the worker-beneficiaries, or in which they may have a
amended to conform with the limits set forth in Section 3 of Article XII vested right, at the time this Act becomes effective.
of the Constitution. The provisions of Section 32 of this Act, with regard to production and income-
o Contracts covering areas not in excess of 1,000 hectares in the case sharing shall apply to farms operated by multinational corporations.
of such corporations and associations, and 500 hectares, in the case During the transition period, the new owners shall be assisted in their efforts to
of such individuals, shall be allowed to continue under their original learn modern technology in production. Enterprises which show a willingness
terms and conditions but not beyond August 29, 1992, or their valid and commitment and good-faith efforts to impart voluntarily such advanced
termination, whichever comes sooner, after which, such agreements technology will be given preferential treatment where feasible.
shall continue only when confirmed by the appropriate government In no case shall a foreign corporation, association, entity or individual enjoy
agency. Such contracts shall likewise continue even after the lands any rights or privileges better than those enjoyed by a domestic corporation,
has been transferred to beneficiaries or awardees thereof, which association, entity or individual.
transfer shall be immediately commenced and implemented and AGRICULTURAL LANDS LEASED, HELD OR POSSESSED BY
completed within the period of three (3) years mentioned in the first MULTINATIONAL CORPORATIONS ARE COVERED BY THE CARL
paragraph hereof. ACQUISITION AND DISTRIBUTION
o In no case will such leases and other agreements now being Land shall be distributed directly to individual worker beneficiaries
implemented extend beyond August 29, 1992, when all lands subject If not economically feasible and sound to divide the land, individual worker
hereof shall have been distributed completely to qualified beneficiaries beneficiaries shall form a workers cooperative or association which will deal
or awardees. with the corporation by way of lease growers agreement and other legitimate
Such agreements can continue thereafter only under a new contract between purposes
the government or qualified beneficiaries or awardees, on the one hand, and
said enterprises, on the other. Section 9. Ancestral Lands.
Lands leased, held or possessed by multinational corporations, owned by For purposes of this Act, ancestral lands of each indigenous cultural
private individuals and private non-governmental corporations, associations, community shall include, but not be limited to, lands in the actual, continuous
institutions and entities, citizens of the Philippines, shall be subject to and open possession and occupation of the community and its members:
immediate compulsory acquisition and distribution upon the expiration of the provided, that the Torrens Systems shall be respected.
applicable lease, management, grower or service contract in effect as of The right of these communities to their ancestral lands shall be protected to
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ensure their economic, social and cultural well-being.n line with the principles Certificate of Land Ownership Award (CLOA) issued to agrarian
of self-determination and autonomy, the systems of land ownership, land use, reform beneficiaries under the Comprehensive Agrarian Reform
and the modes of settling land disputes of all these communities must be Program.
recognized and respected. o In cases where the fishponds or prawn farms have been subjected to
Any provision of law to the contrary notwithstanding, the PARC may suspend the Comprehensive Agrarian Reform Law, by voluntary offer to sell, or
the implementation of this Act with respect to ancestral lands for the purpose commercial farms deferment or notices of compulsory acquisition, a
of identifying and delineating such lands: provided, that in the autonomous simple and absolute majority of the actual regular workers or tenants
regions, the respective legislatures may enact their own laws on ancestral must consent to the exemption within one (1) year from the effectivity
domain subject to the provisions of the Constitution and the principles of this Act. When the workers or tenants do not agree to this
enunciated in this Act and other national laws. exemption, the fishponds or prawn farms shall be distributed
ANCESTRAL LAND DEFINED collectively to the worker-beneficiaries or tenants who shall form a
Lands of public domain that have been in open, continuous, exclusive and cooperative or association to manage the same.
notorious occupation and cultivation by members of the National Cultural o In cases where the fishponds or prawn farms have not been subjected
Communities by themselves or through their ancestors, under a bona fide to the Comprehensive Agrarian Reform Law, the consent of the farm
claim of acquisition of ownership according to their customs and traditions for a workers shall no longer be necessary, however, the provision of
period of at least 30 years before date of approval of PD 410 Section 32-A hereof on incentives shall apply."
Lands occupied, possessed and utilized by individuals, families and clans who Lands actually, directly and exclusively used and found to be necessary for
are members of indigenous cultural communities or indigenous peoples since national defense, school sites and campuses, including experimental farm
time immemorial, by themselves or through their predecessors in interest, stations operated by public or private schools for educational purposes, seeds
under claims of individual or traditional group ownership, continuously to the and seedling research and pilot production center, church sites and convents
present except when interrupted by war, force majeure or displacement by appurtenant thereto, mosque sites and Islamic centers appurtenant thereto,
force, deceit, stealth or as a consequence of government projects and other communal burial grounds and cemeteries, penal colonies and penal farms
voluntary dealings, entered into by government and private actually worked by the inmates, government and private research and
individuals/corporations, including by not limited to residential lots, rice quarantine centers and all lands with eighteen percent (18%) slope and over,
terraces or paddies, private forests, swidden farms and tree lots except those already developed, shall be exempt from the coverage of this
Act.
ANCESTRAL LANDS EXEMPTED FROM THE AGRARIAN REFORM LAW
CARL recognizes and respect systems of land ownership, land use and modes LAND CLASSIFICATION IN THE TAX DECLARATION IS NOT CONCLUSIVE
of settling land disputes of all indigenous cultural communities or indigenous tax declarations are not the sole basis of land classification
people in line with self determination and autonomy even if tax declaration classifies land as agricultural, the tax declaration is still
Autonomous region – respective legislatures may enact own laws on ancestral refutable
domains subject to
o Constitution REPUBLIC V. CA 2000
o principles in CARL and Landowners Green City Estate and Development Court: 112 hectares in Rizal
o other national laws o tax declaration: Agricultural
DAR subject the land to CARP
Section 10. Exemptions and Exclusions. Landowners filed an application for exemption from agrarian reform
Lands actually, directly and exclusively used for parks, wildlife, forest reserves, o Non agricultural because it is within the residential and forest
reforestation, fish sanctuaries and breeding grounds, watersheds and conservation zones of the town plan/zoning ordinance
mangroves shall be exempt from the coverage of this Act. DAR denied application based on tax declaration
Private lands actually, directly and exclusively used for prawn farms and HELD DAR was wrong in denying the application for exemption by mere fact
fishponds shall be exempt from the coverage of this Act: Provided, that the tax declaration classified the land as agricultural
o That said prawn farms and fishponds have not been distributed and Tax declarations are not the sole basis for the classification of land
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DAR AO asks for other documents to be submitted when applying for distribution to qualified beneficiaries on the ground that it was not directly,
exemption from CARP actually and exclusively used for school site.
HELD: DAR WAS INCORRECT IN SEGREGATING THE 400 HECTARES OF
LANDS CLASSIFIED AS NON AGRICULTURAL PRIOR TO EFFECTIVITY OF CMU LAND.
CARL ARE NOT COVERED CMU is a school established to promote agriculture and industry, the need for
Land already classified for residential, commercial or industrial use by HLRUB a vast track of land for future expansion is obvious.
prior to CARL are not subject to agrarian Reform The determination of when and what lands are found to be necessary for use
Lands converted prior to June 15 1988 the CMU, the school is in the best postion to resolve and answer the question
DAR is bound by such conversions and pass upon the problem of its needs in relation to its policies.
LANDS WITH AT LEAST 18% SCOPE ARE EXEMPTED FROM COVERAGE OF SECRETARY OF AGRARIAN REFORM HAS JURISDICTION TO EXEMPT A
AGRARIAN REFORM PROPERTY FROM AGRARIAN REFORM COVERAGEs
reason is to prevent adverse effects on lowlands and streams due to soil
erosions Sec. 11. Commercial Farming.
considered permanent forests or forest reserves, regardless of condition of Commercial farms, which are private agricultural lands devoted to saltbeds,
vegetative cover, occupancy or use of any kind not alienable or disposable fruit farms, orchards, vegetable and cut-flower farms, and cacao, coffee and
if land with at least 18% slope was previously classified as alienable or rubber plantations, shall be subject to immediate compulsory acquisition and
disposable but not yet titled reverted to category of public forest distribution after ten (10) years from the effectivity of this Act.
if land has been covered by an approved public land application or occupied In the case of new farms, the ten-year period shall begin from the first year of
openly, continuously, adversely and publicly for a period of not less than 30 commercial production and operation, as determined by the DAR.
years as effectivity of Forestry Reform Code remains as alienable or During the ten-year period, the Government shall initiate steps necessary to
disposable on condition that land is kept in vegetative state sufficient to acquire these lands, upon payment of just compensation for the land and the
prevent erosion and adverse effects on lowlands and streams improvements thereon, preferably in favor of organized cooperatives or
associations which shall thereafter manage the said lands for the workers-
SCHOOL SITES AND CAMPUSES beneficiaries.
Exempted if lands are COMMERCIAL FARMS ARE LANDS DEVOTED TO
o actually, directly and exclusively used and Saltbeds
o found necessary by the SCHOOL for school sites and campuses Fruit farms
DAR has no right to substitute judgment of discretion for the determination of Orchards
the necessity of the school Vegetable and cut flower farms
Cacao, coffee, and rubber plantations
CMU V. DARAB
Landowner: Central Mindanao University IMPLEMENTATION OF AGRARIAN REFORM LAW DEFERRED ON
o CMU – agricultural institution COMMERCIAL FARMS - Compulsory acquisition and distribution of commercial
o 3000 hectares of land farms has been deferred for 10 years
Livelihood program: leased 4 to 5 hectares each to faculty and employees in from effectivity of CARL ( June 1988) - for farms already existing when law
groups of 5s took effect
o lowland rice project from 1st year of commercial production and operation - for new farms
Faculty and Employees filed a complaint before DAR , Asking DAR to declare
them as tenants under CARL, so that they could become agrarian reform MODE OF ACQUISITION OF COMMERCIAL FARMS
beneficiaries. DAR did not agree. Voluntary offer to sell VOS
DAR then segregated 400 hectares of suitable, compact and contiguous Compulsory acquisition CA
portions of CMU land and subjected it to agrarian reform coverage for Direct payment scheme DPS
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days from execution and delivery of Deed of Transfer CHAPTER VI
Compensation
o if landowner rejects offer – DAR will determine just compensation thru Section 17. Determination of Just Compensation. —In determining just
summary proceedings compensation, the cost of acquisition of the land, the value of the standing crop,
o if landowner disagrees with DAR decision – regular courts of justice for the current: value of like properties, its nature, actual use and income, the sworn
final determination of just compensation valuation by the owner, the tax declarations, the assessment made by government
Taking of immediate possession of land by DAR assessors, and seventy percent (70%) of the zonal valuation of the Bureau of
o if landowner receives corresponding payment or Internal Revenue (BIR), translated into a basic formula by the DAR shall be
o landowner does not respond to notice of acquisition considered, subject to the final decision of the proper court. The social and
request by DAR to Register of Deeds to issue Transfer Certificate of Title to economic benefits contributed by the farmers and the farmworkers and by the
Republic of Philippines Government t o the property as well as the nonpayment of taxes or loans secured
Distribution of land to qualified beneficiaries from any government financing institution on the said land shall be considered as
additional factors to determine its valuation."
TWO NOTICES TO THE LANDOWNERARE REQUIRED FOR VALIDITY OF CONCEPT OF JUST COMPENSATION
IMPLEMENTATION Defined as the full and fair equivalent of the property taken form its owner by
Notice of Coverage the expropriator
o pursuant to DAR AO 12 1989 Measure is not takers gain, but the owners loss
o in compliance with administrative due process Equivalent to be rendered for the property to be taken shall be real,
Notice of Acquisition substantial, full and ample.
o pursuant to Sec 16 of CARL Correct determination of amount to be paid to the landowner and prompt
payment
LAND ACQUISITION PROCEDURE SHOULD BE STRICTLY CONSTRUED o payment within a reasonable time from taking
Reason: Land acquisition under agrarian reform law is an extraordinary o immediate deposit and release of provisional compensation
method of expropriation o full payment of finally adjudged just compensation
Failure of DAR or any of its agencies to comply with proper procedure for o without prompt payment, compensation is not just because landowner
expropriation is a violation of constitutional due process and in effect arbitrary, is made to suffer consequence of being immediately deprived on land
capricious, whimsical and tainted with grave abuse of discretion while being made to wait before receiving amount necessary to cope
o ex. No notice of coverage issued with his loss
o ex. of not prompt payment
WHEN TITLE OR OWNERSHIP OF THE LAND IS TRANSFERRED TO THE reimbursement is conditioned on Land Bank’s approval and
STATE release of the amount is made to depend upon compliance
Only upon full payment of just compensation with documentary requirements
Title and ownership remains with landowner until final determination of just partial payment of just compensation
compensation and fully payment
Mere fact that DAR deposited offered price with Land Bank does not warrant FACTORS USED IN VALUATION OF LANDS
cancellation of owner’s title Capital Net Income CNI
o based on land use and productivity
OPENING OF TRUST ACCOUNT DOES NOT CONSTITUTE PAYMENT - Law Comparable Sales CS
requires just compensation to be paid in cash and Land Bank bonds, not trust o 70% of BIR zonal value
accounts. Market Value MV
o based on tax declaration
FORMULAS
When all factors are CNI x 0.6 + CS x 0.30 + MV x 0.10 = Land Value
present
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CONSENT OF BENEFICIARY NOT NECESSARY IN DETERMINING JUST the same province or region where the lands for which the
COMPENSATION OF LAND OWNER bonds were paid are situated;
Under Sec 18 of CARL, the only parties in valuation of land Acquisition of shares of stock of government-owned or -
o land owner controlled corporations or shares of stocks owned by the
o DAR government in private corporations;
o Land Bank Substitution for surety or bail bonds for the provisional release
law does not mention participation of farmer beneficiary of accused persons, or performance bonds;
Land Bank cannot refuse to pay valuation set by PARAD simply because Security for loans with any government financial institution,
consent of farmer beneficiary was not obtained in fixing just compensation provided the proceeds of the loans shall be invested in an
economic enterprise, preferably in a small-and medium-scale
Section 18. Valuation and Mode of Compensation. — The LBP shall industry, in the same province or region as the land for which
compensate the landowner in such amounts as may be agreed upon by the the bonds are paid;
landowner and the DAR and the LBP, in accordance with the criteria provided for Payment for various taxes and fees to government; provided,
in Sections 16 and 17, and other pertinent provisions hereof, or as may be finally that the use of these bonds for these purposes will be limited
determined by the court, as the just compensation for the land. to a certain percentage of the outstanding balance of the
The compensation shall be paid on one of the following modes, at the option of the financial instruments: provided, further, that the PARC shall
landowner: determine the percentage mentioned above;
Cash payment, under the following terms and conditions; Payment for tuition fees of the immediate family of the original
(a) For lands above fifty (50) hectares, insofar — Twenty-five percent (25%) cash, the balance to bondholder
be paid in government universities, colleges, trade
as the excess hectarage is concerned. in government financial instruments negotiableschools,
at any and other institutions;
time. Payment for fees of the immediate family of the original
(b) For lands above twenty-four (24) hectares — Thirty percent (30%) cash, the balance to be paidbondholder
in in government hospitals; and
and up to fifty (50) hectares. Such
government financial instruments negotiable at any other uses as the PARC may from time to time allow.
time. In case of extraordinary inflation, the PARC shall take appropriate measures to
(c) For lands twenty-four (24) hectares and — protect the economy.
Thirty-five percent (35%) cash, the balance to be paid
below. MODE OF negotiable
in government financial instruments PAYMENTat any
time. Cash and Financial instruments of the government
Shares of stock in government-owned or controlled corporations, LBP o lands above 50 hectares
preferred shares, physical assets or other qualified investments in accordance 25% cash
with guidelines set by the PARC; 75% government financial instruments
Tax credits which can be used against any tax liability; o lands above 24 hectares
LBP bonds, which shall have the following features: 30% cash
o Market interest rates aligned with 91-day treasury bill rates. Ten 70% government financial instruments
percent (10%) of the face value of the bonds shall mature every year o lands above 24 hectares and below
from the date of issuance until the tenth (10th) year: provided, that 35% cash
should the landowner choose to forego the cash portion, whether in 65% government financial instruments
full or in part, he shall be paid correspondingly in LBP bonds; Shares of stocks in government owned or controlled corporations, preferred
o Transferability and negotiability. Such LBP bonds may be used by the shares of land bank, physical assets or other qualified investments
landowner, his successors in interest or his assigns, up to the amount Tax credits which can be used against tax liabilities
of their face value, for any of the following: Land bank bonds which shall mature every year until the 10th year
Acquisition of land or other real properties of the government,
including assets under the Asset Privatization Program and LANDOWNER CANNOT INSIST IN CASH PAYMENT ONLY
other assets foreclosed by government financial institutions in Landowner cannot insist in cash payment only because it is not sanctioned by
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acquisition, farmer beneficiary pays agreed price of land directly to owner CHAPTER VII
Land Redistribution
Section 22. Qualified Beneficiaries.
The lands covered by the CARP shall be distributed as much as possible to
landless residents of the same barangay, or in the absence thereof, landless
residents of the same municipality in the following order of priority:
o agricultural lessees and share tenants;
o regular farmworkers;
o seasonal farmworkers;
o other farmworkers;
o actual tillers or occupants of public lands;
o collectives or cooperatives of the above beneficiaries; and
o others directly working on the land.
Provided, however, that the children of landowners who are qualified under
Section 6 of this Act shall be given preference in the distribution of the land of
their parents: and provided, further, that actual tenant-tillers in the landholdings
shall not be ejected or removed therefrom.
Beneficiaries under Presidential Decree No. 27 who have culpably sold,
disposed of, or abandoned their land are disqualified to become beneficiaries
under this Program.
A basic qualification of a beneficiary shall be his willingness, aptitude, and
ability to cultivate and make the land as productive as possible. The DAR shall
adopt a system of monitoring the record or performance of each beneficiary,
so that any beneficiary guilty of negligence or misuse of the land or any
support extended to him shall forfeit his right to continue as such beneficiary.
The DAR shall submit periodic reports on the performance of the beneficiaries
to the PARC.
If, due to the landowner's retention rights or to the number of tenants, lessees,
or workers on the land, there is not enough land to accommodate any or some
of them, they may be granted ownership of other lands available for
distribution under this Act, at the option of the beneficiaries.
Farmers already in place and those not accommodated in the distribution of
privately-owned lands will be given preferential rights in the distribution of
lands from the public domain.
WHO ARE ELIGIBLE TO BECOME AGRARIAN REFORM BENEFICIARIES –
Must be a landless resident of the same barangay, or same municipality
LANDLESS RESIDENT – Farmer or tiller who owns less than 3 hectares of land
agricultural lessees and share tenants
regular farmworkers
seasonal farm workers
other farm workers
actual tillers or occupants of public lands
collectives or cooperatives of above beneficiaries
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AGRARIAN LAW - NOTES
others directly working on the land those who have sold, disposed, or abandoned the lands awarded to them by
the government
QUALIFICATIONS OF AN AGRARIAN REFORM BENEFICIARY – Farmer those who have converted agricultural lands to non agricultural use without
(whether tenant, lessee or worker) must be prior approval from DAR
Filipino citizen those who have been finally adjudged guilty of forcible entry or unlawful
Resident of barangay or municipality where landholding is located detainer over the property
At least 15 years old at time of identification, screening and selection those who have violated agrarian reform laws and regulations
Willing, able and equipped with aptitude to cultivate and make land productive
SEC. 22-A. Order of Priority. - A landholding of a landowner shall be distributed
SPECIAL QUALIFICATIONS FOR FARM WORKERS IN COMMERCIAL FARMS first to qualified beneficiaries under Section 22, subparagraphs (a) and (b) of that
PLANTATIONS - if they were already employed as of June 15, 1988 in the same landholding up to a maximum of three (3) hectares each. Only when these
landholding covered by the comprehensive agrarian reform law beneficiaries have all received three (3) hectares each, shall the remaining portion
of the landholding, if any, be distributed to other beneficiaries under Section 22,
MANAGERIAL FARM WORKERS NOT QUALIFIED TO BECOME subparagraphs (c), (d), (e), (f), and (g)."
BENEFICIARIES ORDER OF DISTRIBUTION
farm workers holding managerial or supervisory positions as of June 15 1988 Children of landowner enjoy first preference in distribution of landholding.
are not qualified to become agrarian reform beneficiaries Each child is entitled to 3 hectares if
however, farm workers promoted to managerial or supervisory position after o 15 years old
they were identified, screened and selected will remain to be qualified o actually tilling the land or directly managing the farm
beneficiaries After the children, 3 hectares each is given to:
o Agricultural lessees and share tenants
WHO ARE DISQUALIFIED TO BECOME AGRARIAN REFORM BENEFICIARIES- o Regular farm workers
The following tenants, lessees or farm workers remaining portion
Those who do not meet the basic qualifications o seasonal farm workers
Those who have waived their right to become an agrarian reform beneficiary in o other farm workers
exchange for compensation, provided that waiver has not been questioned in o actual tillers or occupants of public lands
proper government entity o collectives or cooperatives of above beneficiaries
Those who have not paid an aggregate of 3 annual amortizations o others directly working on the land
Those who have failed to exercise right of redemption/repurchase within 2
years resulting in foreclosure of mortgage by Land Bank of the Philippines of a Section 23. Distribution Limit. — No qualified beneficiary may own more than
previously awarded land three (3) hectares of agricultural land.
Those who refused to pay 3 annual amortizations for land acquired through
voluntary land transfer or direct payment scheme, resulting in repossession by MAXIMUM AREA THAT CAN BE OWNED BY OR AWARDED TO
landowner BENEFICIARIES IS 3 HECTARES
Those who have been dismissed for cause therefor is a tenant or farm worker already owns 2 hectares, he can still be
Those who have obtained substantially equivalent employment awarded 1 hectare
o i.e., any employment or profession form which applicant farmer if particular landholding is not enough to meet then 3 hectare award ceiling for
derives income equivalent to income of a regular farm worker at time each agricultural lessee or tenant, area to be distributed to them will be based
of identification, screening, and selection of beneficiary on actual size of tillage by each lessee or tenant
those who have retired or voluntarily resigned from employment if landholding is more than enough to accommodate 3 hectare limit for each
those who have misused the land or diverted the financial support services agricultural lessee or tenant, excess will be distributed to agrarian reform
extended by the government beneficiaries in the following order of priority
those who have misrepresented material facts in basic qualifications o seasonal farm workers
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AGRARIAN LAW - NOTES
o other farm workers landowner constituting full payment in cash or in bond with due notice to the
o actual tillers or occupants of public lands landowner and the registration of the certificate of land ownership award
o collectives or cooperatives of above beneficiaries issued to the beneficiaries, and to cancel previous titles pertaining thereto.
if not economically feasible and sound to divide the excess to seasonal or Identified and qualified agrarian reform beneficiaries, based on Section 22 of
other farm workers, following criteria for priorization shall be observed Republic Act No. 6657, as, amended, shall have usufructuary rights over the
o willingness, aptitude, ability to cultivate and make land productive awarded land as soon as the DAR takes possession of such land, and such
o physical capacity right shall not be diminished even pending the awarding of the emancipation
o length of service patent or the certificate of land ownership award.
if seasonal or other farm workers equally meet the foregoing criteria, priority All cases involving the cancellation of registered emancipation patents,
shall be given to those who have continuously worked on the subject certificates of land ownership award, and other titles issued under any agrarian
landholding. reform program are within the exclusive and original jurisdiction of the
o other farm workers who cannot be accommodated will be put in wait Secretary of the DAR."
list of potential beneficiaries in other landholdings
if beneficiaries opt for collective ownership, such farmers cooperative, total TRANSFER OF OWNERSHIP TO THE BENEFICIARIES NOT AUTOMATIC
area must coincide with total number of members or co owners multiplied by 3 Compulsory acquisition does not mean automatic transfer of ownership of land
hectare limit title and ownership over land can be transferred to beneficiaries only upon full
payment of just compensation to land owner.
FACTORS TO BE CONSIDERED IN DETERMINING THE SIZE OF LAND TO BE
AWARDED WHEN DOES DAR ISSUE CERTIFICATE OF LAND OWNERSHIP AWARD
type of crop DAR will issue CLOA only upon full payment of amortization by farmer
type of soil beneficiary
weather patterns CLOA becomes basis for issuance in his name of original or transfer certificate
other pertinent factors critical for success of beneficiaries of title
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AGRARIAN LAW - NOTES
Illegal conversion of land The conditions for the issuance of collective titles are as follows:
o The current farm management system of the land covered by CARP
RIGHTS AND OBLIGTIONS OF BENEFICIARIES COMMENCE from receipt of will not be appropriate for individual farming of farm parcels;
duly registered CLOA and actual physical possession of awarded land o The farm labor system is specialized, where the farmworkers are
pending CLOA issuance, the identified and qualified agrarian reform organized by functions and not by specific parcels such as spraying,
beneficiaries have usufructuary rights over awarded land which DAR has taken weeding, packing and other similar functions;
possession o The potential beneficiaries are currently not farming individual parcels
hut collectively work on large contiguous areas; and
OBLIGATIONS OF AGRARIAN REFORM BENEFICIARIES o The farm consists of multiple crops being farmed in an integrated
Exercise due diligence in the use, cultivation and maintenance of land, manner or includes non- crop production areas that are necessary for
including improvements thereon the viability of farm operations, such as packing plants, storage areas,
Pay land bank 30 annual amortizations with 6% interest per anum dikes, and other similar facilities that cannot be subdivided or assigned
o amortization will start 1 year from date of registration of CLOA to individual farmers.
o however if actual occupancy of land takes place after CLOA For idle and abandoned lands or underdeveloped agricultural lands to be
registration, 1 year period shall be reckoned from constructive covered by CARP, collective ownership shall be allowed only if the
occupation beneficiaries opt for it and there is a clear development plan that would require
collective farming or integrated farm operations exhibiting the conditions
Section 25. Award Ceilings for Beneficiaries. described above. Otherwise, the land awarded to a farmer-beneficiary should
Beneficiaries shall be awarded an area not exceeding three (3) hectares, be in the form of a n individual title, covering one (1) contiguous tract or
which may cover a contiguous tract of land or several parcels of land several parcels of land cumulated up to a maximum of three (3) hectares.
cumulated up to the prescribed award limits. The determination of the size of In case of collective ownership, title to the property shall be issued in the name
the land for distribution shall consider crop type, ,soil type, weather patterns of the co- owners or the cooperative or collective organization as the case may
and other pertinent variables or factors which are deemed critical for the be. If the certificates of land ownership award are given to cooperatives then
success of the beneficiaries. the names of the beneficiaries must also be listed in the same certificate of
For purposes of this Act, a landless beneficiary is one who owns less than land ownership award.
three (3) hectares of agricultural land. With regard to existing collective certificates of land ownership award, the DAR
Whenever appropriate, the DAR shall encourage the agrarian reform should immediately undertake the parcelization of said certificates of land
beneficiaries to form or join farmers' cooperatives for purposes of affiliating ownership award, particularly those that do not exhibit the conditions for
with existing cooperative banks in their respective provinces or localities, as collective ownership outlined above. The DAR shall conduct a review and
well as forming blocs of agrarian reform beneficiaries, corporations, and redocumentation of all the collective certificates of land ownership award. The
partnerships and joining other farmers' collective organizations, including DAR shall prepare a prioritized list of certificates of land ownership award to be
irrigators' associations: Provided, That the agrarian reform beneficiaries shall parcelized. The parcelization shall commence immediately upon approval of
be assured of corresponding shares in the corporation, seats in the board of this Act and shall not exceed a period of three (3) years. Only those existing
directors, and an equitable share in the profit. certificates of land ownership award that are collectively farmed or are
In general, the land awarded to a farmer- beneficiary should be in the form of operated in an integrated manner shall remain as collective."
an individual title, covering one (1)contiguous tract or several parcels of land
cumulated up to a maximum of three (3) hectares. INDIVIDUAL TITLES FOR EVERY BENEFICIARY
The beneficiaries may opt for collective ownership, such as co-workers or General Rule: Land should be awarded to individual farmer beneficiary and
farmers cooperative or some other form of collective organization and for the covered by an individual title
issuance of collective ownership titles: Provided, That the total area that may However, if beneficiaries opt for collective ownership, collective ownership title
be awarded shall not exceed the total number of co-owners or members of the may be issued in name of co- owners or collective organization
cooperative or collective organization multiplied by the award limit above o names of beneficiaries should be listed in same certificate of land
prescribed, except in meritorious cases as determined by the PARC. ownership award
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