Republic of the Philippines

Congress of the Philippines

Metro Manila

Eighth Congress

Republic Act No. 6657 June 10, 1988

AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN REFORM PROGRAM TO

PROMOTE SOCIAL JUSTICE AND INDUSTRIALIZATION, PROVIDING THE
MECHANISM FOR ITS IMPLEMENTATION, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled::

CHAPTER I
Preliminary Chapter

Section 1. Title. This Act shall be known as the Comprehensive Agrarian Reform Law of
1988.

Section 2. Declaration of Principles and Policies. 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 highest consideration to promote social justice and to move the
nation toward sound rural development and industrialization, and the establishment of owner
cultivatorship of economic-size farms as the basis of Philippine agriculture.

To this end, a more equitable distribution and ownership of land, with due regard to the rights of
landowners to just compensation and to the ecological needs of the nation, shall be undertaken to
provide farmers and farmworkers with the opportunity to enhance their dignity and improve the
quality of their lives through greater productivity of agricultural lands.

The agrarian reform program is founded on the right of farmers and regular farmworkers, who
are landless, to own directly or collectively the lands they till or, in the case of other farm
workers, to receive a just share of the fruits thereof. To this end, the State shall encourage and
undertake the just distribution of all agricultural lands, subject to the priorities and retention
limits set forth in this Act, having taken into account ecological, developmental, and equity
considerations, and subject to the payment of just compensation. The State shall respect the right
of small landowners, and shall provide incentives for voluntary land-sharing.

The State shall recognize the right of farmers, farmworkers and landowners, as well as
cooperatives and other independent farmers' organizations, to participate in the planning,
organization, and management of the program, and shall provide support to agriculture through
appropriate technology and research, and adequate financial production, marketing and other
support services.

The State shall apply the principles of agrarian reform, or stewardship, whenever applicable, in
accordance with law, in the disposition or utilization of other natural resources, including lands
of the public domain, under lease or concession, suitable to agriculture, subject to prior rights,
homestead rights of small settlers and the rights of indigenous communities to their ancestral
lands.

The State may resettle landless farmers and farmworkers in its own agricultural estates, which
shall be distributed to them in the manner provided by law.

By means of appropriate incentives, the State shall encourage the formation and maintenance of
economic-size family farms to be constituted by individual beneficiaries and small landowners.

The State shall protect the rights of subsistence fishermen, especially of local communities, to
the preferential use of communal marine and fishing resources, both inland and offshore.t shall
provide support to such fishermen through appropriate technology and research, adequate
financial, production and marketing assistance and other services. The State shall also protect,
develop and conserve such resources. The protection shall extend to offshore fishing grounds of
subsistence fishermen against foreign intrusion. Fishworkers shall receive a just share from their
labor in the utilization of marine and fishing resources.

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

The State shall provide incentives to landowners to invest the proceeds of the agrarian reform
program to promote industrialization, employment and privatization of public sector enterprises.
Financial instruments used as payment for lands shall contain features that shall enhance
negotiability and acceptability in the marketplace.

The State may lease undeveloped lands of the public domain to qualified entities for the
development of capital-intensive farms, and traditional and pioneering crops especially those for
exports subject to the prior rights of the beneficiaries under this Act.

Section 3. Definitions. For the purpose of this Act, unless the context indicates otherwise:

(a) Agrarian Reform means redistribution of lands, regardless of crops or fruits produced,
to farmers and regular farmworkers who are landless, irrespective of tenurial
arrangement, to include the totality of factors and support services designed to lift the
economic status of the beneficiaries and all other arrangements alternative to the physical
redistribution of lands, such as production or profit-sharing, labor administration, and the
distribution of shares of stocks, which will allow beneficiaries to receive a just share of
the fruits of the lands they work.
(b) Agriculture, Agricultural Enterprise or Agricultural Activity means the cultivation of
the soil, planting of crops, growing of fruit trees, raising of livestock, poultry or fish,
including the harvesting of such farm products, and other farm activities and practices
performed by a farmer in conjunction with such farming operations done by person
whether natural or juridical.

(c) Agricultural Land refers to land devoted to agricultural activity as defined in this Act
and not classified as mineral, forest, residential, commercial or industrial land.

(d) Agrarian Dispute refers to any controversy relating to tenurial arrangements, whether
leasehold, tenancy, stewardship or otherwise, over lands devoted to agriculture, including
disputes concerning farmworkers' associations or representation of persons in
negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of
such tenurial arrangements.

It includes any controversy relating to compensation of lands acquired under this Act and
other terms and conditions of transfer of ownership from landowners to farmworkers,
tenants and other agrarian reform beneficiaries, whether the disputants stand in the
proximate relation of farm operator and beneficiary, landowner and tenant, or lessor and
lessee.

(e) Idle or Abandoned Land refers to any agricultural land not cultivated, tilled or
developed to produce any crop nor devoted to any specific economic purpose
continuously for a period of three (3) years immediately prior to the receipt of notice of
acquisition by the government as provided under this Act, but does not include land that
has become permanently or regularly devoted to non-agricultural purposes.t does not
include land which has become unproductive by reason of force majeure or any other
fortuitous event, provided that prior to such event, such land was previously used for
agricultural or other economic purpose.

(f) Farmer refers to a natural person whose primary livelihood is cultivation of land or the
production of agricultural crops, either by himself, or primarily with the assistance of his
immediate farm household, whether the land is owned by him, or by another person
under a leasehold or share tenancy agreement or arrangement with the owner thereof.

(g) Farmworker is a natural person who renders service for value as an employee or
laborer in an agricultural enterprise or farm regardless of whether his compensation is
paid on a daily, weekly, monthly or "pakyaw" basis. The term includes an individual
whose work has ceased as a consequence of, or in connection with, a pending agrarian
dispute and who has not obtained a substantially equivalent and regular farm
employment.

(h) Regular Farmworker is a natural person who is employed on a permanent basis by an

agricultural enterprise or farm.
 (i) Seasonal Farmworker is a natural person who is employed on a recurrent, periodic or
intermittent basis by an agricultural enterprise or farm, whether as a permanent or a non-
permanent laborer, such as "dumaan", "sacada", and the like.

(j) Other Farmworker is a farmworker who does not fall under paragraphs (g), (h) and (i).

(k) Cooperatives shall refer to organizations composed primarily of small agricultural

producers, farmers, farmworkers, or other agrarian reform beneficiaries who voluntarily
organize themselves for the purpose of pooling land, human, technological, financial or
other economic resources, and operated on the principle of one member, one vote. A
juridical person may be a member of a cooperative, with the same rights and duties as a
natural person.

CHAPTER II
Coverage

Section 4. Scope. The Comprehensive Agrarian Reform Law of 1989 shall cover, regardless
of tenurial arrangement and commodity produced, all public and private agricultural lands, as
provided in Proclamation No. 131 and Executive Order No. 229, including other lands of the
public domain suitable for agriculture.

More specifically the following lands are covered by the Comprehensive Agrarian Reform
Program:

(a) All alienable and disposable lands of the public domain devoted to or suitable for
agriculture. No reclassification of forest or mineral lands to agricultural lands shall be
undertaken after the approval of this Act until Congress, taking into account ecological,
developmental and equity considerations, shall have determined by law, the specific
limits of the public domain.

(b) All lands of the public domain in excess of the specific limits as determined by
Congress in the preceding paragraph;

(c) All other lands owned by the Government devoted to or suitable for agriculture; and

(d) All private lands devoted to or suitable for agriculture regardless of the agricultural
products raised or that can be raised thereon.

Section 5. Schedule of Implementation. The distribution of all lands covered by this Act
shall be implemented immediately and completed within ten (10) years from the effectivity
thereof.

Section 6. Retention Limits. Except as otherwise provided in this Act, no person may own or
retain, directly or indirectly, any public or private agricultural land, the size of which shall vary
according to factors governing a viable family-size farm, such as commodity produced, terrain,
infrastructure, and soil fertility as determined by the Presidential Agrarian Reform Council
(PARC) created hereunder, 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 the
following qualifications: (1) that he is at least fifteen (15) years of age; and (2) that he is actually
tilling the land or directly managing the farm: provided, that landowners whose lands have been
covered by Presidential Decree No. 27 shall be allowed to keep the areas originally retained by
them thereunder: provided, further, that original homestead grantees or their direct compulsory
heirs who still own the original homestead at the time of the approval of this 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 contiguous, shall pertain to
the landowner: provided, however, that in case the area selected for retention by the landowner is
tenanted, the tenant shall have the option to choose whether to remain therein or be a beneficiary
in the same or another agricultural land with similar or comparable features.n case the tenant
chooses to remain in the retained area, he shall be considered a leaseholder and shall lose his
right to be a beneficiary under this Act.n case the tenant chooses to be a beneficiary in another
agricultural land, he loses his right as a leaseholder to the land retained by the landowner. The
tenant must exercise this option within a period of one (1) year from the 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 prior to the approval
of this Act shall be respected.

Upon the effectivity of this Act, any sale, disposition, lease, management, contract or transfer of
possession of private lands executed by the original landowner in violation of the Act shall be
null and void: provided, 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 the effectivity of
this Act. Thereafter, all Registers of Deeds shall inform the Department of Agrarian Reform
(DAR) within thirty (30) days of any transaction involving agricultural lands in excess of five (5)
hectares.

Section 7. Priorities. The Department of Agrarian Reform (DAR) in coordination with the
Presidential Agrarian Reform Council (PARC) shall plan and program the acquisition and
distribution of all agricultural lands through a period of ten (10) years from the effectivity of this
Act. Lands shall be acquired and distributed as follows:

Phase One: Rice and corn lands under Presidential Decree No. 27; all idle or abandoned lands;
all private lands voluntarily offered by the owners for agrarian reform; all lands foreclosed by the
government financial institutions; all lands acquired by the Presidential Commission on Good
Government (PCGG); and all other lands owned by the government devoted to or suitable for
agriculture, which shall be acquired and distributed immediately upon the effectivity of this Act,
with the implementation to be completed within a period of not more than four (4) years;

Phase Two: All alienable and disposable public agricultural lands; all arable public agricultural
lands under agro-forest, pasture and agricultural leases already cultivated and planted to crops in
accordance with Section 6, Article XIII of the Constitution; all public agricultural lands which
are to be opened for new development and resettlement; and all private agricultural lands in
excess of fifty (50) hectares, insofar as the excess hectarage is concerned, to implement
principally the rights of farmers and regular farmworkers, who are the landless, to own directly
or collectively the lands they till, which shall be distributed immediately upon the effectivity of
this Act, with the implementation to be completed within a period of not more than four (4)
years.

Phase Three: All other private agricultural lands commencing with large landholdings and
proceeding to medium and small landholdings under the following schedule:

(a) Landholdings above twenty-four (24) hectares up to fifty (50) hectares, to begin on
the fourth (4th) year from the effectivity of this Act and to be completed within three (3)
years; and

(b) Landholdings from the retention limit up to twenty-four (24) hectares, to begin on the
sixth (6th) year from the effectivity of this Act and to be completed within four (4) years;
to implement principally the right of farmers and regular farmworkers who are landless,
to own directly or collectively the lands they till.

The schedule of acquisition and redistribution of all agricultural lands covered by this program
shall be made in accordance with the above order of priority, which shall be provided in the
implementing rules to be prepared by the Presidential Agrarian Reform Council (PARC), taking
into consideration the following; the need to distribute land to the tillers at the earliest practicable
time; the need to enhance agricultural productivity; and the availability of funds and resources to
implement and support the program.

In any case, the PARC, upon recommendation by the Provincial Agrarian Reform Coordinating
Committee (PARCCOM), may declare certain provinces or region as priority land reform areas,
in which the acquisition and distribution of private agricultural lands therein may be
implemented ahead of the above schedules.

In effecting the transfer within these guidelines, priority must be given to lands that are tenanted.

The PARC shall establish guidelines to implement the above priorities and distribution scheme,
including the determination of who are qualified beneficiaries: provided, that an owner-tiller may
be a beneficiary of the land he does not own but is actually cultivating to the extent of the
difference between the area of the land he owns and the award ceiling of three (3) hectares.

Section 8. Multinational Corporations. All lands of the public domain leased, held or
possessed by multinational corporations or associations, and other lands owned by the
government or by government-owned or controlled corporations, associations, institutions, or
entities, devoted to existing and operational agri-business or agro-industrial enterprises, operated
by multinational corporations and associations, shall be programmed for acquisition and
distribution immediately upon the effectivity of this Act, with the implementation to be
completed within three (3) years.
Lands covered by the paragraph immediately preceding, under lease, management, grower or
service contracts, and the like, shall be disposed of as follows:

(a) Lease, management, grower or service contracts covering such lands covering an
aggregate area in excess of 1,000 hectares, leased or held by foreign individuals in excess
of 500 hectares are deemed amended to conform with the limits set forth in Section 3 of
Article XII of the Constitution.

(b) Contracts covering areas not in excess of 1,000 hectares in the case of such
corporations and associations, and 500 hectares, in the case of such individuals, shall be
allowed to continue under their original terms and conditions but not beyond August 29,
1992, or their valid termination, whichever comes sooner, after which, such agreements
shall continue only when confirmed by the appropriate government agency. Such
contracts shall likewise continue even after the lands has been transferred to beneficiaries
or awardees thereof, which transfer shall be immediately commenced and implemented
and completed within the period of three (3) years mentioned in the first paragraph
hereof.

(c) In no case will such leases and other agreements now being implemented extend
beyond August 29, 1992, when all lands subject hereof shall have been distributed
completely to qualified beneficiaries or awardees.

Such agreements can continue thereafter only under a new contract between the government or
qualified beneficiaries or awardees, on the one hand, and said enterprises, on the other.

Lands leased, held or possessed by multinational corporations, owned by private individuals and
private non-governmental corporations, associations, institutions and entities, citizens of the
Philippines, shall be subject to immediate compulsory acquisition and distribution upon the
expiration of the applicable lease, management, grower or service contract in effect as of August
29, 1987, or otherwise, upon its valid termination, whichever comes sooner, but not later than
after ten (10) years following the effectivity of the Act. However during the said period of
effectivity, the government shall take steps to acquire these lands for immediate distribution
thereafter.

In general, lands shall be distributed directly to the individual worker-beneficiaries.n case it is

not economically feasible and sound to divide the land, then they shall form a workers'
cooperative or association which will deal with the corporation or business association or any
other proper party for the purpose of entering into a lease or growers agreement and for all other
legitimate purposes. Until a new agreement is entered into by and between the workers'
cooperative or association and the corporation or business association or any other proper party,
any agreement existing at the time this Act takes effect between the former and the previous
landowner shall be respected by both the workers' cooperative or association and the corporation,
business, association or such other proper party.n no case shall the implementation or application
of this Act justify or result in the reduction of status or diminution of any benefits received or
enjoyed by the worker-beneficiaries, or in which they may have a vested right, at the time this
Act becomes effective.
The provisions of Section 32 of this Act, with regard to production and income-sharing shall
apply to farms operated by multinational corporations.

During the transition period, the new owners shall be assisted in their efforts to learn modern
technology in production. Enterprises which show a willingness and commitment and good-faith
efforts to impart voluntarily such advanced technology will be given preferential treatment where
feasible.

In no case shall a foreign corporation, association, entity or individual enjoy any rights or
privileges better than those enjoyed by a domestic corporation, association, entity or individual.

Section 9. Ancestral Lands. For purposes of this Act, ancestral lands of each indigenous
cultural community shall include, but not be limited to, lands in the actual, continuous and open
possession and occupation of the community and its members: provided, that the Torrens
Systems shall be respected.

The right of these communities to their ancestral lands shall be protected to ensure their
economic, social and cultural well-being.n line with the principles of self-determination and
autonomy, the systems of land ownership, land use, and the modes of settling land disputes of all
these communities must be recognized and respected.

Any provision of law to the contrary notwithstanding, the PARC may suspend the
implementation of this Act with respect to ancestral lands for the purpose of identifying and
delineating such lands: provided, that in the autonomous regions, the respective legislatures may
enact their own laws on ancestral domain subject to the provisions of the Constitution and the
principles enunciated in this Act and other national laws.

Section 10. Exemptions and Exclusions. Lands actually, directly and exclusively used and
found to be necessary for parks, wildlife, forest reserves, reforestation, fish sanctuaries and
breeding grounds, watersheds, and mangroves, national defense, school sites and campuses
including experimental farm stations operated by public or private schools for educational
purposes, seeds and seedlings research and pilot production centers, church sites and convents
appurtenant thereto, mosque sites and Islamic centers appurtenant thereto, communal burial
grounds and cemeteries, penal colonies and penal farms actually worked by the inmates,
government and private research and quarantine centers and all lands with eighteen percent
(18%) slope and over, except those already developed shall be exempt from the coverage of the
Act.

Section 11. Commercial Farming. Commercial farms, which are private agricultural lands
devoted to commercial livestock, poultry and swine raising, and aquaculture including saltbeds,
fishponds and prawn ponds, fruit farms, orchards, vegetable and cut-flower farms, and cacao,
coffee and rubber plantations, shall be subject to immediate compulsory acquisition and
distribution after (10) years from the effectivity of the Act.n the case of new farms, the ten-year
period shall begin from the first year of commercial production and operation, as determined by
the DAR. During the ten-year period, the government shall initiate the steps necessary to acquire
these lands, upon payment of just compensation for the land and the improvements thereon,
preferably in favor of organized cooperatives or associations, which shall hereafter manage the
said lands for the worker-beneficiaries.

If the DAR determines that the purposes for which this deferment is granted no longer exist, such
areas shall automatically be subject to redistribution.

The provisions of Section 32 of the Act, with regard to production-and income-sharing, shall
apply to commercial farms.

CHAPTER III
Improvement of Tenurial and Labor Relations

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.

Section 13. Production-Sharing Plan. Any enterprise adopting the scheme provided for in
Section 32 or operating under a production venture, lease, management contract or other similar
arrangement and any farm covered by Sections 8 and 11 hereof is hereby mandated to execute
within ninety (90) days from the effectivity of this Act, a production-sharing plan, under
guidelines prescribed by the appropriate government agency.

Nothing herein shall be construed to sanction the diminution of any benefits such as salaries,
bonuses, leaves and working conditions granted to the employee-beneficiaries under existing
laws, agreements, and voluntary practice by the enterprise, nor shall the enterprise and its
employee-beneficiaries be prevented from entering into any agreement with terms more
favorable to the latter.

CHAPTER IV
Registration

Section 14. Registration of Landowners. Within one hundred eighty (180) days from the
effectivity of this Act, all persons, natural or juridical, including government entities, that own or
claim to own agricultural lands, whether in their names or in the name of others, except those
who have already registered pursuant to Executive Order No. 229, who shall be entitled to such
incentives as may be provided for the PARC, shall file a sworn statement in the proper assessor's
office in the form to be prescribed by the DAR, stating the following information:

(a) the description and area of the property;

(b) the average gross income from the property for at least three (3) years;
 (c) the names of all tenants and farmworkers therein;

(d) the crops planted in the property and the area covered by each crop as of June 1,
1987;

(e) the terms of mortgages, lease, and management contracts subsisting as of June 1,
1987, and

(f) the latest declared market value of the land as determined by the city or provincial
assessor.

Section 15. Registration of Beneficiaries. The DAR in coordination with the Barangay
Agrarian Reform Committee (BARC) as organized in this Act, shall register all agricultural
lessees, tenants and farmworkers who are qualified to be beneficiaries of the CARP. These
potential beneficiaries with the assistance of the BARC and the DAR shall provide the following
data:

(a) names and members of their immediate farm household;

(b) owners or administrators of the lands they work on and the length of tenurial
relationship;

(c) location and area of the land they work;

(d) crops planted; and

(e) their share in the harvest or amount of rental paid or wages received.

A copy of the registry or list of all potential CARP beneficiaries in the barangay shall be posted
in the barangay hall, school or other public buildings in the barangay where it shall be open to
inspection by the public at all reasonable hours.

CHAPTER V
Land Acquisition

Section 16. Procedure for Acquisition of Private Lands. For purposes of acquisition of
private lands, the following procedures shall be followed:

(a) After having identified the land, the landowners and the beneficiaries, the DAR shall
send its notice to acquire the land to the owners thereof, by personal delivery or
registered mail, and post the same in a conspicuous place in the municipal building and
barangay hall of the place where the property is located. Said notice shall contain the
offer of the DAR to pay a corresponding value in accordance with the valuation set forth
in Sections 17, 18, and other pertinent provisions hereof.
 (b) Within thirty (30) days from the date of receipt of written notice by personal delivery
or registered mail, the landowner, his administrator or representative shall inform the
DAR of his acceptance or rejection of the offer.

(c) If the landowner accepts the offer of the DAR, the Land Bank of the Philippines
(LBP) shall pay the landowner the purchase price of the land within thirty (30) days after
he executes and delivers a deed of transfer in favor of the government and surrenders the
Certificate of Title and other muniments of title.

(d) In case of rejection or failure to reply, the DAR shall conduct summary administrative
proceedings to determine the compensation for the land requiring the landowner, the LBP
and other interested parties to submit evidence as to the just compensation for the land,
within fifteen (15) days from the receipt of the notice. After the expiration of the above
period, the matter is deemed submitted for decision. The DAR shall decide the case
within thirty (30) days after it is submitted for decision.

(e) Upon receipt by the landowner of the corresponding payment or, in case of rejection
or no response from the landowner, upon the deposit with an accessible bank designated
by the DAR of the compensation in cash or in LBP bonds in accordance with this Act, the
DAR shall take immediate possession of the land and shall request the proper Register of
Deeds to issue a Transfer Certificate of Title (TCT) in the name of the Republic of the
Philippines. The DAR shall thereafter proceed with the redistribution of the land to the
qualified beneficiaries.

(f) Any party who disagrees with the decision may bring the matter to the court of proper
jurisdiction for final determination of just compensation.

CHAPTER VI
Compensation

Section 17. Determination of Just Compensation. In determining just compensation, the cost
of acquisition of the land, the current value of the like properties, its nature, actual use and
income, the sworn valuation by the owner, the tax declarations, and the assessment made by
government assessors shall be considered. The social and economic benefits contributed by the
farmers and the farmworkers and by the Government to the property as well as the non-payment
of taxes or loans secured from any government financing institution on the said land shall be
considered as additional factors to determine its valuation.

Section 18. Valuation and Mode of Compensation. The LBP shall compensate the
landowner in such amounts as may be agreed upon by the landowner and the DAR and the LBP,
in accordance with the criteria provided for in Sections 16 and 17, and other pertinent provisions
hereof, or as may be finally determined by the court, as the just compensation for the land.

The compensation shall be paid on one of the following modes, at the option of the landowner:

(1) Cash payment, under the following terms and conditions;

 (a) For lands above fifty (50) Twenty-five percent (25%) cash, the
hectares, insofar as the excess balance to be paid in government
hectarage is concerned. financial instruments negotiable at
any time.

(b) For lands above twenty-four (24) Thirty percent (30%) cash, the
hectares and up to fifty (50) balance to be paid in government
hectares. financial instruments negotiable at
any time.

(c) For lands twenty-four (24) Thirty-five percent (35%) cash, the
hectares and below. balance to be paid in government
financial instruments negotiable at
any time.

(2) Shares of stock in government-owned or controlled corporations, LBP preferred

shares, physical assets or other qualified investments in accordance with guidelines set by
the PARC;

(3) Tax credits which can be used against any tax liability;

(4) LBP bonds, which shall have the following features:

(a) Market interest rates aligned with 91-day treasury bill rates. Ten percent
(10%) of the face value of the bonds shall mature every year from the date of
issuance until the tenth (10th) year: provided, that should the landowner choose to
forego the cash portion, whether in full or in part, he shall be paid
correspondingly in LBP bonds;

(b) Transferability and negotiability. Such LBP bonds may be used by the
landowner, his successors in interest or his assigns, up to the amount of their face
value, for any of the following:

(i) Acquisition of land or other real properties of the government,

including assets under the Asset Privatization Program and other assets
foreclosed by government financial institutions in the same province or
region where the lands for which the bonds were paid are situated;

(ii) Acquisition of shares of stock of government-owned or -controlled

corporations or shares of stocks owned by the government in private
corporations;

(iii) Substitution for surety or bail bonds for the provisional release of
accused persons, or performance bonds;
 (iv) Security for loans with any government financial institution, provided
the proceeds of the loans shall be invested in an economic enterprise,
preferably in a small-and medium-scale industry, in the same province or
region as the land for which the bonds are paid;

(v) Payment for various taxes and fees to government; provided, that the
use of these bonds for these purposes will be limited to a certain
percentage of the outstanding balance of the financial instruments:
provided, further, that the PARC shall determine the percentage
mentioned above;

(vi) Payment for tuition fees of the immediate family of the original
bondholder in government universities, colleges, trade schools, and other
institutions;

(vii) Payment for fees of the immediate family of the original bondholder
in government hospitals; and

(viii) Such other uses as the PARC may from time to time allow.

In case of extraordinary inflation, the PARC shall take appropriate measures to protect the
economy.

Section 19. Incentives for Voluntary Offers for Sales. Landowners, other than banks and
other financial institutions, who voluntarily offer their lands for sale shall be entitled to an
additional five percent (5%) cash payment.

Section 20. Voluntary Land Transfer. Landowners of agricultural lands subject to

acquisition under this Act may enter into a voluntary arrangement for direct transfer of their
lands to qualified beneficiaries subject to the following guidelines:

(a) All notices for voluntary land transfer must be submitted to the DAR within the first
year of the implementation of the CARP. Negotiations between the landowners and
qualified beneficiaries covering any voluntary land transfer which remain unresolved
after one (1) year shall not be recognized and such land shall instead be acquired by the
government and transferred pursuant to this Act.

(b) The terms and conditions of such transfer shall not be less favorable to the transferee
than those of the government's standing offer to purchase from the landowner and to
resell to the beneficiaries, if such offers have been made and are fully known to both
parties.

(c) The voluntary agreement shall include sanctions for non-compliance by either party
and shall be duly recorded and its implementation monitored by the DAR.
Section 21. Payment of Compensation by Beneficiaries Under Voluntary Land Transfer.
Direct payments in cash or in kind may be by the farmer-beneficiary to the landowner under
terms to be mutually agreed upon by both parties, which shall be binding upon them, upon
registration with the approval by the DAR. Said approval shall be considered given, unless notice
of disapproval is received by the farmer-beneficiary within thirty (30) days from the date of
registration.

In the event they cannot agree on the price of land, the procedure for compulsory acquisition as
provided in Section 16 shall apply. The LBP shall extend financing to the beneficiaries for
purposes of acquiring the land.

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:

(a) agricultural lessees and share tenants;

(b) regular farmworkers;

(c) seasonal farmworkers;

(d) other farmworkers;

(e) actual tillers or occupants of public lands;

(f) collectives or cooperatives of the above beneficiaries; and

(g) 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.

Section 23. Distribution Limit. No qualified beneficiary may own more than three (3)
hectares of agricultural land.

Section 24. Award to Beneficiaries. The rights and responsibilities of the beneficiary shall
commence from the time the DAR makes an award of the land to him, which award shall be
completed within one hundred eighty (180) days from the time the DAR takes actual possession
of the land. Ownership of the beneficiary shall be evidenced by a Certificate of Land Ownership
Award, which shall contain the restrictions and conditions provided for in this Act, and shall be
recorded in the Register of Deeds concerned and annotated on the Certificate of Title.

Section 25. Award Ceilings for Beneficiaries. Beneficiaries shall be awarded an area not
exceeding three (3) hectares which may cover a contiguous tract of land or several parcels of
land cumulated up to the prescribed award limits.

For purposes of this Act, a landless beneficiary is one who owns less than three (3) hectares of
agricultural land.

The beneficiaries may opt for collective ownership, such as co-ownership or farmers cooperative
or some other form of collective organization: provided, that the total area that may be awarded
shall not exceed the total number of co-owners or member of the cooperative or collective
organization multiplied by the award limit above prescribed, except in meritorious cases as
determined by the PARC. Title to the property shall be issued in the name of the co-owners or
the cooperative or collective organization as the case may be.

Section 26. Payment by Beneficiaries. Lands awarded pursuant to this Act shall be paid for
by the beneficiaries to the LBP in thirty (30) annual amortizations at six percent (6%) interest per
annum. The payments for the first three (3) years after the award may be at reduced amounts as
established by the PARC: provided, that the first five (5) annual payments may not be more than
five percent (5%) of the value of the annual gross production as established by the DAR. Should
the scheduled annual payments after the fifth year exceed ten percent (10%) of the annual gross
production and the failure to produce accordingly is not due to the beneficiary's fault, the LBP
may reduce the interest rate or reduce the principal obligations to make the repayment
affordable.

The LBP shall have a lien by way of mortgage on the land awarded to the beneficiary; and this
mortgage may be foreclosed by the LBP for non-payment of an aggregate of three (3) annual
amortizations. The LBP shall advise the DAR of such proceedings and the latter shall
subsequently award the forfeited landholdings to other qualified beneficiaries. A beneficiary
whose land, as provided herein, has been foreclosed shall thereafter be permanently disqualified
from becoming a beneficiary under this Act.

Section 27. Transferability of Awarded Lands. Lands acquired by beneficiaries under this
Act may not be sold, transferred or conveyed except through hereditary succession, or to the
government, or the LBP, or to other qualified beneficiaries for a period of ten (10) years:
provided, however, that the children or the spouse of the transferor shall have a right to
repurchase the land from the government or LBP within a period of two (2) years. Due notice of
the availability of the land shall be given by the LBP to the Barangay Agrarian Reform
Committee (BARC) of the barangay where the land is situated. The Provincial Agrarian Reform
Coordinating Committee (PARCCOM) as herein provided, shall, in turn, be given due notice
thereof by the BARC.

If the land has not yet been fully paid by the beneficiary, the rights to the land may be transferred
or conveyed, with prior approval of the DAR, to any heir of the beneficiary or to any other
beneficiary who, as a condition for such transfer or conveyance, shall cultivate the land himself.
Failing compliance herewith, the land shall be transferred to the LBP which shall give due notice
of the availability of the land in the manner specified in the immediately preceding paragraph.

In the event of such transfer to the LBP, the latter shall compensate the beneficiary in one lump
sum for the amounts the latter has already paid, together with the value of improvements he has
made on the land.

Section 28. Standing Crops at the Time of Acquisition. The landowner shall retain his share
of any standing crops unharvested at the time the DAR shall take possession of the land under
Section 16 of the Act, and shall be given a reasonable time to harvest the same.

CHAPTER VIII
Corporate Farms

Section 29. Farms Owned or Operated by Corporations or Other Business Associations. In

the case of farms owned or operated by corporations or other business associations, the following
rules shall be observed by the PARC:

In general, lands shall be distributed directly to the individual worker-beneficiaries.

In case it is not economically feasible and sound to divide the land, then it shall be owned
collectively by the workers' cooperative or association which will deal with the corporation or
business association. Until a new agreement is entered into by and between the workers'
cooperative or association and the corporation or business association, any agreement existing at
the time this Act takes effect between the former and the previous landowner shall be respected
by both the workers' cooperative or association and the corporation or business association.

Section 30. Homelots and Farmlots for Members of Cooperatives. The individual members
of the cooperatives or corporations mentioned in the preceding section shall be provided with
homelots and small farmlots for their family use, to be taken from the land owned by the
cooperative or corporation.

Section 31. Corporate Landowners. Corporate landowners may voluntarily transfer

ownership over their agricultural landholdings to the Republic of the Philippines pursuant to
Section 20 hereof or to qualified beneficiaries, under such terms and conditions, consistent with
this Act, as they may agree upon, subject to confirmation by the DAR.

Upon certification by the DAR, corporations owning agricultural lands may give their qualified
beneficiaries the right to purchase such proportion of the capital stock of the corporation that the
agricultural land, actually devoted to agricultural activities, bears in relation to the company's
total assets, under such terms and conditions as may be agreed upon by them.n no case shall the
compensation received by the workers at the time the shares of stocks are distributed be reduced.
The same principle shall be applied to associations, with respect to their equity or participation.

Corporations or associations which voluntarily divest a proportion of their capital stock, equity
or participation in favor of their workers or other qualified beneficiaries under this section shall
be deemed to have complied with the provisions of the Act: provided, that the following
conditions are complied with:

a) In order to safeguard the right of beneficiaries who own shares of stocks to dividends
and other financial benefits, the books of the corporation or association shall be subject to
periodic audit by certified public accountants chosen by the beneficiaries;

b) Irrespective of the value of their equity in the corporation or association, the

beneficiaries shall be assured of at least one (1) representative in the board of directors, or
in a management or executive committee, if one exists, of the corporation or association;
and

c) Any shares acquired by such workers and beneficiaries shall have the same rights and
features as all other shares.

d) Any transfer of shares of stocks by the original beneficiaries shall be void ab initio
unless said transaction is in favor of a qualified and registered beneficiary within the
same corporation.

If within two (2) years from the approval of this Act, the land or stock transfer envisioned above
is not made or realized or the plan for such stock distribution approved by the PARC within the
same period, the agricultural land of the corporate owners or corporation shall be subject to the
compulsory coverage of this Act.

Section 32. Production-Sharing. Pending final land transfer, individuals or entities owning,
or operating under lease or management contract, agricultural lands are hereby mandated to
execute a production-sharing plan with their farm workers or farmworkers' reorganization, if any,
whereby three percent (3%) of the gross sales from the production of such lands are distributed
within sixty (60) days of the end of the fiscal year as compensation to regular and other
farmworkers in such lands over and above the compensation they currently receive: provided,
that these individuals or entities realize gross sales in excess of five million pesos per annum
unless the DAR, upon proper application, determines a lower ceiling.

In the event that the individual or entity realizes a profit, an additional ten percent (10%) of the
net profit after tax shall be distributed to said regular and other farmworkers within ninety (90)
days of the end of the fiscal year.

To forestall any disruption in the normal operation of lands to be turned over to the farmworker-
beneficiaries mentioned above, a transitory period, the length of which shall be determined by
the DAR, shall be established.

During this transitory period, at least one percent (1%) of the gross sales of the entity shall be
distributed to the managerial, supervisory and technical group in place at the time of the
effectivity of this Act, as compensation for such transitory managerial and technical functions as
it will perform, pursuant to an agreement that the farmworker-beneficiaries and the managerial,
supervisory and technical group may conclude, subject to the approval of the DAR.

Section 33. Payment of Shares of Cooperative or Association. Shares of a cooperative or

association acquired by farmers-beneficiaries or workers-beneficiaries shall be fully paid for in
an amount corresponding to the valuation as determined in the immediately succeeding section.
The landowner and the LBP shall assist the farmers-beneficiaries and workers-beneficiaries in
the payment for said shares by providing credit financing.

Section 34. Valuation of Lands. A valuation scheme for the land shall be formulated by the
PARC, taking into account the factors enumerated in Section 17, in addition to the need to
stimulate the growth of cooperatives and the objective of fostering responsible participation of
the workers-beneficiaries in the creation of wealth.

In the determination of price that is just not only to the individuals but to society as well, the
PARC shall consult closely with the landowner and the workers-beneficiaries.

In case of disagreement, the price as determined by the PARC, if accepted by the workers-
beneficiaries, shall be followed, without prejudice to the landowner's right to petition the Special
Agrarian Court to resolve the issue of valuation.

CHAPTER IX
Support Services

Section 35. Creation of Support Services Office. There is hereby created the Office of
Support Services under the DAR to be headed by an Undersecretary.

The Office shall provide general support and coordinative services in the implementation of the
program particularly in carrying out the provisions of the following services to farmer-
beneficiaries and affected landowners:
 1) Irrigation facilities, especially second crop or dry season irrigation facilities;

2) Infrastructure development and public works projects in areas and settlements that
come under agrarian reform, and for this purpose, the preparation of the physical
development plan of such settlements providing suitable barangay sites, potable water
and power resources, irrigation systems and other facilities for a sound agricultural
development plan;

3) Government subsidies for the use of irrigation facilities;

4) Price support and guarantee for all agricultural produce;

5) Extending to small landowners, farmers' organizations the necessary credit, like

concessional and collateral-free loans, for agro-industrialization based on social
collaterals like the guarantees of farmers' organization:

6) Promoting, developing and extending financial assistance to small-and medium-scale

industries in agrarian reform areas;

7) Assigning sufficient numbers of agricultural extension workers to farmers'

organizations;

8) Undertake research, development and dissemination of information on agrarian reform

and low-cost and ecologically sound farm inputs and technologies to minimize reliance
on expensive and imported agricultural inputs;

9) Development of cooperative management skills through intensive training;

10) Assistance in the identification of ready markets for agricultural produce and training
in other various prospects of marketing; andtai

11) Administration operation management and funding of support services, programs and
projects including pilot projects and models related to agrarian reform as developed by
the DAR.

Section 36. Funding for Support Services. In order to cover the expenses and cost of support
services, at least twenty-five percent (25%) of all appropriations for agrarian reform shall be
immediately set aside and made available for this purpose.n addition, the DAR shall be
authorized to package proposals and receive grants, aid and other forms of financial assistance
from any source.

Section 37. Support Services to the Beneficiaries. The PARC shall ensure that support
services to farmers-beneficiaries are provided, such as:

(a) Land surveys and titling;

 (b) Liberalized terms on credit facilities and production loans;

(c) Extension services by way of planting, cropping, production and post-harvest

technology transfer, as well as marketing and management assistance and support to
cooperatives and farmers' organizations;

(d) Infrastructure such as access trails, mini-dams, public utilities, marketing and storage
facilities; and

(e) Research, production and use of organic fertilizers and other local substances
necessary in farming and cultivation.

The PARC shall formulate policies to ensure that support services to farmer-beneficiaries shall
be provided at all stages of land reform.

The Bagong Kilusang Kabuhayan sa Kaunlaran (BKKK) Secretariat shall be transferred and
attached to the LBP, for its supervision including all its applicable and existing funds, personnel,
properties, equipment and records.

Misuse or diversion of the financial and support services herein provided shall result in sanctions
against the beneficiary guilty thereof, including the forfeiture of the land transferred to him or
lesser sanctions as may be provided by the PARC, without prejudice to criminal prosecution.

Section 38. Support Services to Landowners. The PARC with the assistance of such other
government agencies and instrumentalities as it may direct, shall provide landowners affected by
the CARP and prior agrarian reform programs with the following services:

(a) Investment information financial and counseling assistance;

(b) Facilities, programs and schemes for the conversion or exchange of bonds issued for
payment of the lands acquired with stocks and bonds issued by the National Government,
the Central Bank and other government institutions and instrumentalities;

(c) Marketing of LBP bonds, as well as promoting the marketability of said bonds in
traditional and non-traditional financial markets and stock exchanges; and

(d) Other services designed to utilize productively the proceeds of the sale of such lands
for rural industrialization.

A landowner who invests in rural-based industries shall be entitled to the incentives granted to a
registered enterprise engaged in a pioneer or preferred area of investment as provided for in the
Omnibus Investment Code of 1987, or to such other incentives as the PARC, the LBP, or other
government financial institutions may provide.

The LBP shall redeem a landowner's LBP bonds at face value, provided that the proceeds thereof
shall be invested in a BOI-registered company or in any agri-business or agro-industrial
enterprise in the region where the landowner has previously made investments, to the extent of
thirty percent (30%) of the face value of said LBP bonds, subject to guidelines that shall be
issued by the LBP.

Section 39. Land Consolidation. The DAR shall carry out land consolidation projects to
promote equal distribution of landholdings, to provide the needed infrastructures in agriculture,
and to conserve soil fertility and prevent erosion.

CHAPTER X
Special Areas of Concern

Section 40. Special Areas of Concern. As an integral part of the Comprehensive Agrarian
Reform Program, the following principles in these special areas of concern shall be observed:

(1) Subsistence Fishing. Small fisherfolk, including seaweed farmers, shall be assured
of greater access to the utilization of water resources.

(2) Logging and Mining Concessions. Subject to the requirement of a balanced

ecology and conservation of water resources, suitable areas, as determined by the
Department of Environment and Natural Resources (DENR), in logging, mining and
pasture areas, shall be opened up for agrarian settlements whose beneficiaries shall be
required to undertake reforestation and conservation production methods. Subject to
existing laws, rules and regulations, settlers and members of tribal communities shall be
allowed to enjoy and exploit the products of the forest other than timer within the logging
concessions.

(3) Sparsely Occupied Public Agricultural Lands. Sparsely occupied agricultural lands
of the public domain shall be surveyed, proclaimed and developed as farm settlements for
qualified landless people based on an organized program to ensure their orderly and early
development.

Agricultural land allocations shall be made for ideal family-size farms as determined by
the PARC. Pioneers and other settlers shall be treated equally in every respect.

Subject to the prior rights of qualified beneficiaries, uncultivated lands of the public
domain shall be made available on a lease basis to interested and qualified parties. Parties
who will engaged in the development of capital-intensive, traditional or pioneering crops
shall be given priority.

The lease period, which shall not be more than a total of fifty (50) years, shall be
proportionate to the amount of investment and production goals of the lessee. A system
of evaluation and audit shall be instituted.

(4) Idle, Abandoned, Foreclosed and Sequestered Lands. Idle, abandoned, foreclosed
and sequestered lands shall be planned for distribution as home lots and family-size
 farmlots to actual occupants.f land area permits, other landless families shall be
accommodated in these lands.

(5) Rural Women. All qualified women members of the agricultural labor force must
be guaranteed and assured equal right to ownership of the land, equal shares of the farm's
produce, and representation in advisory or appropriate decision-making bodies.

(6) Veterans and Retirees. In accordance with Section 7 of Article XVI of the
Constitution, landless war veterans and veterans of military campaigns, their surviving
spouse and orphans, retirees of the Armed Forces of the Philippines (AFP) and the
Integrated National Police (INP), returnees, surrenderees, and similar beneficiaries shall
be given due consideration in the disposition of agricultural lands of the public domain.

(7) Agriculture Graduates. Graduates of agricultural schools who are landless shall be
assisted by the government, through the DAR, in their desire to own and till agricultural
lands.

CHAPTER XI
Program Implementation

Section 41. The Presidential Agrarian Reform Council. The Presidential Agrarian Reform
Council (PARC) shall be composed of the President of the Philippines as Chairman, the
Secretary of Agrarian Reform as Vice-Chairman and the following as members; Secretaries of
the Departments of Agriculture; Environment and Natural Resources; Budget and Management;
Local Government: Public Works and Highways; Trade and Industry; Finance; Labor and
Employment; Director-General of the National Economic and Development Authority;
President, Land Bank of the Philippines; Administrator, National Irrigation Administration; and
three (3) representatives of affected landowners to represent Luzon, Visayas and Mindanao; six
(6) representatives of agrarian reform beneficiaries, two (2) each from Luzon, Visayas and
Mindanao, provided that one of them shall be from the cultural communities.

Section 42. Executive Committee. There shall be an Executive Committee (EXCOM) of the
PARC composed of the Secretary of the DAR as Chairman, and such other members as the
President may designate, taking into account Article XIII, Section 5 of the Constitution. Unless
otherwise directed by PARC, the EXCOM may meet and decide on any and all matters in
between meetings of the PARC: provided, however, that its decisions must be reported to the
PARC immediately and not later than the next meeting.

Section 43. Secretariat. A PARC Secretariat is hereby established to provide general support
and coordinative services such as inter-agency linkages; program and project appraisal and
evaluation and general operations monitoring for the PARC.

The Secretariat shall be headed by the Secretary of Agrarian Reform who shall be assisted by an
Undersecretary and supported by a staff whose composition shall be determined by the PARC
Executive Committee and whose compensation shall be chargeable against the Agrarian Reform
Fund. All officers and employees of the Secretariat shall be appointed by the Secretary of
Agrarian Reform.

Section 44. Provincial Agrarian Reform Coordinating Committee (PARCCOM). A

Provincial Agrarian Reform Coordinating Committee (PARCCOM) is hereby created in each
province, composed of a Chairman, who shall be appointed by the President upon the
recommendation of the EXCOM, the Provincial Agrarian Reform Officer as Executive Officer,
and one representative each from the Departments of Agriculture, and of Environment and
Natural Resources and from the LBP, one representative each from existing farmers'
organizations, agricultural cooperatives and non-governmental organizations in the province; two
representatives from landowners, at least one of whom shall be a producer representing the
principal crop of the province, and two representatives from farmer and farmworker-
beneficiaries, at least one of whom shall be a farmer or farmworker representing the principal
crop of the province, as members: provided, that in areas where there are cultural communities,
the latter shall likewise have one representative.

The PARCCOM shall coordinate and monitor the implementation of the CARP in the province.t
shall provide information on the provisions of the CARP, guidelines issued by the PARC and on
the progress of the CARP in the province.

Section 45. Province-by-Province Implementation. The PARC shall provide the guidelines
for a province-by-province implementation of the CARP. The ten-year program of distribution of
public and private lands in each province shall be adjusted from year by the province's
PARCCOM in accordance with the level of operations previously established by the PARC, in
every case ensuring that support services are available or have been programmed before actual
distribution is effected.

Section 46. Barangay Agrarian Reform Committee (BARC). Unless otherwise provided in
this Act, the provisions of Executive Order No. 229 regarding the organization of the Barangay
Agrarian Reform Committee (BARC) shall be in effect.

Section 47. Functions of the BARC. In addition to those provided in Executive Order No.
229, the BARC shall have the following functions:

(a) Mediate and conciliate between parties involved in an agrarian dispute including
matters related to tenurial and financial arrangements;

(b) Assist in the identification of qualified beneficiaries and landowners within the
barangay;

(c) Attest to the accuracy of the initial parcellary mapping of the beneficiary's tillage;

(d) Assist qualified beneficiaries in obtaining credit from lending institutions;

(e) Assist in the initial determination of the value of the land;

 (f) Assist the DAR representatives in the preparation of periodic reports on the CARP
implementation for submission to the DAR;

(g) Coordinate the delivery of support services to beneficiaries; and

(h) Perform such other functions as may be assigned by the DAR.

(2) The BARC shall endeavor to mediate, conciliate and settle agrarian disputes lodged before it
within thirty (30) days from its taking cognizance thereof.f after the lapse of the thirty day
period, it is unable to settle the dispute, it shall issue a certificate of its proceedings and shall
furnish a copy thereof upon the parties within seven (7) days after the expiration of the thirty-day
period.

Section 48. Legal Assistance. The BARC or any member thereof may, whenever necessary in
the exercise of any of its functions hereunder, seek the legal assistance of the DAR and the
provincial, city, or municipal government.

Section 49. Rules and Regulations. The PARC and the DAR shall have the power to issue
rules and regulations, whether substantive or procedural, to carry out the objects and purposes of
this Act. Said rules shall take effect ten (10) days after publication in two (2) national
newspapers of general circulation.

CHAPTER XII
Administrative Adjudication

Section 50. Quasi-Judicial Powers of the DAR. The DAR is hereby vested with the primary
jurisdiction to determine and adjudicate agrarian reform matters and shall have exclusive original
jurisdiction over all matters involving the implementation of agrarian reform except those falling
under the exclusive jurisdiction of the Department of Agriculture (DA) and the Department of
Environment and Natural Resources (DENR).

It shall not be bound by technical rules of procedure and evidence but shall proceed to hear and
decide all cases, disputes or controversies in a most expeditious manner, employing all
reasonable means to ascertain the facts of every case in accordance with justice and equity and
the merits of the case. Toward this end, it shall adopt a uniform rule of procedure to achieve a
just, expeditious and inexpensive determination for every action or proceeding before it.

It shall have the power to summon witnesses, administer oaths, take testimony, require
submission of reports, compel the production of books and documents and answers to
interrogatories and issue subpoena, and subpoena duces tecum, and enforce its writs through
sheriffs or other duly deputized officers.t shall likewise have the power to punish direct and
indirect contempts in the same manner and subject to the same penalties as provided in the Rules
of Court.

Responsible farmer leaders shall be allowed to represent themselves, their fellow farmers, or
their organizations in any proceedings before the DAR: provided, however, that when there are
two or more representatives for any individual or group, the representatives should choose only
one among themselves to represent such party or group before any DAR proceedings.

Notwithstanding an appeal to the Court of Appeals, the decision of the DAR shall be
immediately executory.

Section 51. Finality of Determination. Any case or controversy before it shall be decided
within thirty (30) days after it is submitted for resolution. Only one (1) motion for
reconsideration shall be allowed. Any order, ruling or decision shall be final after the lapse of
fifteen (15) days from receipt of a copy thereof.

Section 52. Frivolous Appeals. To discourage frivolous or dilatory appeals from the
decisions or orders on the local or provincial levels, the DAR may impose reasonable penalties,
including but not limited to fines or censures upon erring parties.

Section 53. Certification of the BARC. The DAR shall not take cognizance of any agrarian
dispute or controversy unless a certification from the BARC that the dispute has been submitted
to it for mediation and conciliation without any success of settlement is presented: provided,
however, that if no certification is issued by the BARC within thirty (30) days after a matter or
issue is submitted to it for mediation or conciliation the case or dispute may be brought before
the PARC.

CHAPTER XIII
Judicial Review

Section 54. Certiorari. Any decision, order, award or ruling of the DAR on any agrarian
dispute or on any matter pertaining to the application, implementation, enforcement, or
interpretation of this Act and other pertinent laws on agrarian reform may be brought to the
Court of Appeals by certiorari except as otherwise provided in this Act within fifteen (15) days
from the receipt of a copy thereof.

The findings of fact of the DAR shall be final and conclusive if based on substantial evidence.

Section 55. No Restraining Order or Preliminary Injunction. No court in the Philippines

shall have jurisdiction to issue any restraining order or writ of preliminary injunction against the
PARC or any of its duly authorized or designated agencies in any case, dispute or controversy
arising from, necessary to, or in connection with the application, implementation, enforcement,
or interpretation of this Act and other pertinent laws on agrarian reform.

Section 56. Special Agrarian Court. The Supreme Court shall designate at least one (1)
branch of the Regional Trial Court (RTC) within each province to act as a Special Agrarian
Court.

The Supreme Court may designate more branches to constitute such additional Special Agrarian
Courts as may be necessary to cope with the number of agrarian cases in each province.n the
designation, the Supreme Court shall give preference to the Regional Trial Courts which have
been assigned to handle agrarian cases or whose presiding judges were former judges of the
defunct Court of Agrarian Relations.

The Regional Trial Court (RTC) judges assigned to said courts shall exercise said special
jurisdiction in addition to the regular jurisdiction of their respective courts.

The Special Agrarian Courts shall have the powers and prerogatives inherent in or belonging to
the Regional Trial Courts.

Section 57. Special Jurisdiction. The Special Agrarian Courts shall have original and
exclusive jurisdiction over all petitions for the determination of just compensation to landowners,
and the prosecution of all criminal offenses under this Act. The Rules of Court shall apply to all
proceedings before the Special Agrarian Courts, unless modified by this Act.

The Special Agrarian Courts shall decide all appropriate cases under their special jurisdiction
within thirty (30) days from submission of the case for decision.

Section 58. Appointment of Commissioners. The Special Agrarian Courts, upon their own
initiative or at the instance of any of the parties, may appoint one or more commissioners to
examine, investigate and ascertain facts relevant to the dispute including the valuation of
properties, and to file a written report thereof with the court.

Section 59. Orders of the Special Agrarian Courts. No order of the Special Agrarian Courts
on any issue, question, matter or incident raised before them shall be elevated to the appellate
courts until the hearing shall have been terminated and the case decided on the merits.

Section 60. Appeals. An appeal may be taken from the decision of the Special Agrarian
Courts by filing a petition for review with the Court of Appeals within fifteen (15) days receipt
of notice of the decision; otherwise, the decision shall become final.

An appeal from the decision of the Court of Appeals, or from any order, ruling or decision of the
DAR, as the case may be, shall be by a petition for review with the Supreme Court within a non-
extendible period of fifteen (15) days from receipt of a copy of said decision.

Section 61. Procedure on Review. Review by the Court of Appeals or the Supreme Court, as
the case may be, shall be governed by the Rules of Court. The Court of Appeals, however, may
require the parties to file simultaneous memoranda within a period of fifteen (15) days from
notice, after which the case is deemed submitted for decision.

Section 62. Preferential Attention in Courts. All courts in the Philippines, both trial and
appellate, shall give preferential attention to all cases arising from or in connection with the
implementation of the provisions of this Act.

All cases pending in court arising from or in connection with the implementation of this Act shall
continue to be heard, tried and decided into their finality, notwithstanding the expiration of the
ten-year period mentioned in Section 5 hereof.
 CHAPTER XIV
Financing

Section 63. Funding Source. The initial amount needed to implement this Act for the period
of ten (10) years upon approval hereof shall be funded from the Agrarian Reform Fund created
under Sections 20 and 21 of Executive Order No. 229.

Additional amounts are hereby authorized to be appropriated as and when needed to augment the
Agrarian Reform Fund in order to fully implement the provisions of this Act.

Sources of funding or appropriations shall include the following:

(a) Proceeds of the sales of the Assets Privatization Trust;

(b) All receipts from assets recovered and from sales of ill-gotten wealth recovered
through the Presidential Commission on Good Government;

(c) Proceeds of the disposition of the properties of the Government in foreign countries;

(d) Portion of amounts accruing to the Philippines from all sources of official foreign
grants and concessional financing from all countries, to be used for the specific purposes
of financing production credits, infrastructures, and other support services required by
this Act;

(e) Other government funds not otherwise appropriated.

All funds appropriated to implement the provisions of this Act shall be considered continuing
appropriations during the period of its implementation.

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

CHAPTER XV
General Provisions

Section 65. Conversion of Lands. After the lapse of five (5) years from its award, when the
land ceases to be economically feasible and sound for agricultural purposes, or the locality has
become urbanized and the land will have a greater economic value for residential, commercial or
industrial purposes, the DAR, upon application of the beneficiary or the landowner, with due
notice to the affected parties, and subject to existing laws, may authorize the reclassification or
conversion of the land and its disposition: provided, that the beneficiary shall have fully paid his
obligation.

Section 66. Exemptions from Taxes and Fees of Land Transfers. Transactions under this
Act involving a transfer of ownership, whether from natural or juridical persons, shall be
exempted from taxes arising from capital gains. These transactions shall also be exempted from
the payment of registration fees, and all other taxes and fees for the conveyance or transfer
thereof; provided, that all arrearages in real property taxes, without penalty or interest, shall be
deductible from the compensation to which the owner may be entitled.

Section 67. Free Registration of Patents and Titles. All Registers of Deeds are hereby
directed to register, free from payment of all fees and other charges, patents, titles and documents
required for the implementation of the CARP.

Section 68. Immunity of Government Agencies from Undue Interference. No injunction,

restraining order, prohibition or mandamus shall be issued by the lower courts against the
Department of Agrarian Reform (DAR), the Department of Agriculture (DA), the Department of
Environment and Natural Resources (DENR), and the Department of Justice (DOJ) in their
implementation of the program.

Section 69. Assistance of Other Government Entities. The PARC, in the exercise of its
functions, is hereby authorized to call upon the assistance and support of other government
agencies, bureaus and offices, including government-owned or -controlled corporations.

Section 70. Disposition of Private Agricultural Lands. The sale or disposition of agricultural
lands retained by a landowner as a consequence of Section 6 hereof shall be valid as long as the
total landholdings that shall be owned by the transferee thereof inclusive of the land to be
acquired shall not exceed the landholding ceilings provided for in this Act.

Any sale or disposition of agricultural lands after the effectivity of this Act found to be contrary
to the provisions hereof shall be null and void.

Transferees of agricultural lands shall furnish the appropriate Register of Deeds and the BARC
an affidavit attesting that his total landholdings as a result of the said acquisition do not exceed
the landholding ceiling. The Register of Deeds shall not register the transfer of any agricultural
land without the submission of this sworn statement together with proof of service of a copy
thereof to the BARC.

Section 71. Bank Mortgages. Banks and other financial institutions allowed by law to hold
mortgage rights or security interests in agricultural lands to secure loans and other obligations of
borrowers, may acquire title to these mortgaged properties, regardless of area, subject to existing
laws on compulsory transfer of foreclosed assets and acquisition as prescribed under Section 13
of this Act.

Section 72. Lease, Management, Grower or Service Contracts, Mortgages and Other Claims.
Lands covered by this Act under lease, management, grower or service contracts, and the like
shall be disposed of as follows:

(a) Lease, management, grower or service contracts covering private lands may continue
under their original terms and conditions until the expiration of the same even if such
land has, in the meantime, been transferred to qualified beneficiaries.
 (b) Mortgages and other claims registered with the Register of Deeds shall be assumed by
the government up to an amount equivalent to the landowner's compensation value as
provided in this Act.

Section 73. Prohibited Acts and Omissions. The following are prohibited:

(a) The ownership or possession, for the purpose of circumventing the provisions of this
Act, of agricultural lands in excess of the total retention limits or award ceilings by any
person, natural or juridical, except those under collective ownership by farmer-
beneficiaries.

(b) The forcible entry or illegal detainer by persons who are not qualified beneficiaries
under this Act to avail themselves of the rights and benefits of the Agrarian Reform
Program.

(c) The conversion by any landowner of his agricultural land into any non-agricultural
use with intent to avoid the application of this Act to his landholdings and to dispossess
his tenant farmers of the land tilled by them.

(d) The willful prevention or obstruction by any person, association or entity of the
implementation of the CARP.

(e) The sale, transfer, conveyance or change of the nature of lands outside of urban
centers and city limits either in whole or in part after the effectivity of this Act. The date
of the registration of the deed of conveyance in the Register of Deeds with respect to
titled lands and the date of the issuance of the tax declaration to the transferee of the
property with respect to unregistered lands, as the case may be, shall be conclusive for
the purpose of this Act.

(f) The sale, transfer or conveyance by a beneficiary of the right to use or any other
usufructuary right over the land he acquired by virtue of being a beneficiary, in order to
circumvent the provisions of this Act.

Section 74. Penalties. Any person who knowingly or willfully violates the provisions of this
Act shall be punished by imprisonment of not less than one (1) month to not more than three (3)
years or a fine of not less than one thousand pesos (P1,000.00) and not more than fifteen
thousand pesos (P15,000.00), or both, at the discretion of the court.

If the offender is a corporation or association, the officer responsible therefore shall be

criminally liable.

Section 75. Suppletory Application of Existing Legislation. The provisions of Republic Act
No. 3844 as amended, Presidential Decree Nos. 27 and 266 as amended, Executive Order Nos.
228 and 229, both Series of 1987; and other laws not inconsistent with this Act shall have
suppletory effect.
Section 76. Repealing Clause. Section 35 of Republic Act No. 3834, Presidential Decree No.
316, the last two paragraphs of Section 12 of Presidential Decree No. 946, Presidential Decree
No. 1038, and all other laws, decrees executive orders, rules and regulations, issuances or parts
thereof inconsistent with this Act are hereby repealed or amended accordingly.

Section 77. Separability Clause. If, for any reason, any section or provision of this Act is
declared null and void, no other section, provision, or part thereof shall be affected and the same
shall remain in full force and effect.

Section 78. Effectivity Clause. This Act shall take effect immediately after publication in at
least two (2) national newspapers of general circulation.

Approved: June 10, 1988