REPUBLIC ACT NO.

6657
(As amended by RA 7881, 7905, 8532 and 9700)

by Hon. Virgilio R. de los Reyes, Secretary of the Department of Agrarian Reform

and Atty. Christine M. Pul-oc, Chief Legal Officer, CAR.

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 It is the policy of the State to pursue a Compreh
Agrarian Reform Program (CARP). The welfare of the Agrarian Reform Program (CARP). The welfare
landless farmers and farmworkers will receive the highest landless farmers and farmworkers will receive the
consideration to promote social justice and to move the consideration to promote social justice and to mo
nation toward sound rural development and nation toward sound rural development
industrialization, and the establishment of owner industrialization, and the establishment of
cultivatorship of economic-size farms as the basis of cultivatorship of economic-size farms as the b
Philippine agriculture. Philippine agriculture.

To this end, a more equitable distribution and ownership The State shall promote industrialization an
of land, with due regard to the rights of landowners to just employment based on sound agricultural developme
compensation and to the ecological needs of the nation, agrarian reform, through industries that make fu
shall be undertaken to provide farmers and farmworkers efficient use of human and natural resources, and
with the opportunity to enhance their dignity and improve are competitive in both domestic and foreign m
the quality of their lives through greater productivity of Provided, That the conversion of agricultural lan
agricultural lands. industrial, commercial or residential lands shall ta
account, tillers' rights and national food security. F
the State shall protect Filipino enterprises against
foreign competition and trade practices.
 The State recognizes that there is not enough agric
land to be divided and distributed to each farm
The agrarian reform program is founded on the right of regular farmworker so that each one can own
farmers and regular farmworkers, who are landless, to economic-size family farm. This being the c
own directly or collectively the lands they till or, in the meaningful agrarian reform program to uplift th
case of other farm workers, to receive a just share of the and economic status of the farmer and his/her c
fruits thereof. To this end, the State shall encourage and can only be achieved through simult
undertake the just distribution of all agricultural lands, industrialization aimed at developing a self-relia
independent national economy effectively contro
subject to the priorities and retention limits set forth in this
Act, having taken into account ecological, developmental, Filipinos.
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. To this end, the State may, in the interest of n
welfare or defense, establish and operate vital indus
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 A more equitable distribution and ownership of lan
program, and shall provide support to agriculture through due regard to the rights of landowners t
appropriate technology and research, and adequate compensation, retention rights under Section
financial production, marketing and other support Republic Act No. 6657, as amended, and to the eco
services. needs of the nation, shall be undertaken to p
farmers and farmworkers with the opportunity to e
The State shall apply the principles of agrarian reform, or their dignity and improve the quality of their lives t
stewardship, whenever applicable, in accordance with law, greater productivity of agricultural lands.
in the disposition or utilization of other natural resources,
including lands of the public domain, under lease or The agrarian reform program is founded on the r
concession, suitable to agriculture, subject to prior rights, farmers and regular farmworkers, who are landl
homestead rights of small settlers and the rights of own directly or collectively the lands they till or,
indigenous communities to their ancestral lands. case of other farmworkers, to receive a just share
fruits thereof. To this end, the State shall encoura
The State may resettle landless farmers and farmworkers undertake the just distribution of all agricultural
in its own agricultural estates, which shall be distributed subject to the priorities and retention limits set f
to them in the manner provided by law. this Act, taking into account ecological, develop
and equity considerations, and subject to the paym
By means of appropriate incentives, the State shall just compensation. The State shall respect the r
encourage the formation and maintenance of economic- small landowners, and shall provide incenti
size family farms to be constituted by individual voluntary land-sharing.
beneficiaries and small landowners.

As much as practicable, the implementation

program shall be community-based to assure,
others, that the farmers shall have greater con
 farmgate prices, and easier access to credit.

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. It 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 The State shall recognize the right of f
foreign intrusion. Fishworkers shall receive a just share farmworkers and landowners, as well as cooperativ
from their labor in the utilization of marine and fishing other independent farmers organizations, to partici
resources. the planning, organization, and management
program, and shall provide support to agriculture t
The State shall be guided by the principles that land has a appropriate technology and research, and ad
social function and land ownership has a social financial, production, marketing and other s
responsibility. Owners of agricultural lands have the services.
obligation to cultivate directly or through labor
administration the lands they own and thereby make the The State shall recognize and enforce, consisten
land productive. existing laws, the rights of rural women to ow
control land, taking into consideration the subs
equality between men and women as qu
beneficiaries, to receive a just share of the fruits t
The State shall provide incentives to landowners to invest and to be represented in advisory or appropriate de
the proceeds of the agrarian reform program to promote making bodies. These rights shall be independent o
industrialization, employment and privatization of public male relatives and of their civil status.
sector enterprises. Financial instruments used as payment
for lands shall contain features that shall enhance The State shall apply the principles of agrarian refo
negotiability and acceptability in the marketplace. stewardship, whenever applicable, in accordance wi
in the disposition or utilization of other natural res
including lands of the public domain, under le
concession, suitable to agriculture, subject to prior
The State may lease undeveloped lands of the public homestead rights of small settlers and the rig
domain to qualified entities for the development of indigenous communities to their ancestral lands.
capital-intensive farms, and traditional and pioneering
crops especially those for exports subject to the prior
rights of the beneficiaries under this Act.
The State may resettle landless farmers and farm w
in its own agricultural estates, which shall be dist
to them in the manner provided by law.

By means of appropriate incentives, the State

encourage the formation and maintenance of eco
size family farms to be constituted by ind
 beneficiaries and small landowners.

The State shall protect the rights of subsistence fish

especially of local communities, to the preferential
communal marine and fishing resources, both inla
offshore. It shall provide support to such fish
through appropriate technology and research, ad
financial, production and marketing assistance an
services. The State shall also protect, develo
conserve such resources. The protection shall ex
offshore fishing grounds of subsistence fishermen
foreign intrusion. Fishworkers shall receive a jus
from their labor in the utilization of marine and
resources.

The State shall be guided by the principles that lan

social function and land ownership has a
responsibility. Owners of agricultural land ha
obligation to cultivate directly or through
administration the lands they own and thereby ma
land productive.

The State shall provide incentives to landowners to

the proceeds of the agrarian reform program to p
industrialization, employment and privatization of
sector enterprises. Financial instruments used as p
for lands shall contain features that shall e
negotiability and acceptability in the marketplace.

The State may lease undeveloped lands of the

domain to qualified entities for the developm
capital-intensive farms, and traditional and pion
crops especially those for exports subject to th
rights of the beneficiaries under this Act. (as amen
Section 1, RA 9700)

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 (b) Agriculture, Agricultural Enterprise or Agri
Activity means the cultivation of the soil, planting of Activity means the cultivation of the soil, plan
crops, growing of fruit trees, raising of livestock, poulty or crops, growing of fruit trees, [REMOVES
fish, including the harvesting of such farm products, and PHRASE: raising of livestock, poulty or
other farm activities and practices performed by a farmer including the harvesting of such farm products, an
in conjunction with such farming operations done by farm activities and practices performed by a far
person whether natural or juridical. conjunction with such farming operations done by
whether natural or juridical. (as amended by Sec
RA 7881)

(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. It 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 (f) Farmer refers to a natural person whose p
livelihood is cultivation of land or the production of livelihood is cultivation of land or the product
agricultural crops, either by himself, or primarily with the agricultural crops livestock and/or fisheries eit
assistance of his immediate farm household, whether the himself/herself, or primarily with the assistance of
land is owned by him, or by another person under a immediate farm household, whether the land is ow
leasehold or share tenancy agreement or arrangement with him/her, or by another person under a leasehold o
the owner thereof. tenancy agreement or arrangement with the owner
(as amended by Section 2, RA 9700)
 (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.

(l) Rural women refer to women who are engaged directly or indirectly in farming and/or fishing as their so
livelihood, whether paid or unpaid, regular or seasonal, or in food preparation, managing the household, caring
children, and other similar activities. (as added by Section 2, RA 9700)

CHAPTER II
Coverage

SECTION 4. Scope.

The Comprehensive Agrarian Reform Law of 1988 shall The Comprehensive Agrarian Reform Law of 198
cover, regardless of tenurial arrangement and commodity cover, regardless of tenurial arrangement and com
produced, all public and private agricultural lands, as produced, all public and private agricultural la
provided in Proclamation No. 131 and Executive Order provided in Proclamation No. 131 and Executiv
No. 229, including other lands of the public domain No. 229, including other lands of the public
suitable for agriculture. suitable for agriculture: Provided, That landhold
landowners with a total area of five (5) hecta
 below shall not be covered for acquisitio
distribution to qualified beneficiaries.

More specifically, the following lands are covered

More specifically the following lands are covered by the CARP:
Comprehensive Agrarian Reform Program:
(a) All alienable and disposable lands of th
(a) All alienable and disposable lands of the public domain domain devoted to or suitable for agricult
devoted to or suitable for agriculture. No reclassification reclassification of forest or mineral la
of forest or mineral lands to agricultural lands shall be agricultural lands shall be undertaken a
undertaken after the approval of this Act until Congress, approval of this Act until Congress, taki
taking into account ecological, developmental and equity account ecological, developmental and
considerations, shall have determined by law, the specific considerations, shall have determined by l
limits of the public domain. specific limits of the public domain;
(b) All lands of the public domain in excess of the (b) All lands of the public domain in exces
specific limits as determined by Congress in the specific limits as determined by Congress
preceding paragraph; preceding paragraph;

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

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

A comprehensive inventory system in consonance

national land use plan shall be instituted
Department of Agrarian Reform (DAR), in acc
with the Local Government Code, for the pur
properly identifying and classifying farmlands wit
(1) year from effectivity of this Act, without preju
the implementation of the land acquisitio
distribution. (as amended by Section 3, RA 9700)

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. In 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. In 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 this 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 6-A. Exception to Retention Limits. Provincial, city and municipal government units acquiring
agricultural lands by expropriation or other modes of acquisition to be used for actual, direct and exclusive
purposes, such as roads and bridges, public markets, school sites, resettlement sites, local government facilities
parks and barangay plazas or squares, consistent with the approved local comprehensive land use plan, shal
subject to the five (5)-hectare retention limit under this Section and Sections 70 and 73(a) of Republic Act No. 6
amended: Provided, That lands subject to CARP shall first undergo the land acquisition and distribution proces
program: Provided, further, That when these lands have been subjected to expropriation, the agrarian
beneficiaries therein shall be paid just compensation. (as added by Section 4, RA 9700)

SECTION 6-B. Review of Limits of Land Size. Within six (6) months from the effectivity of this Act, the DA
submit a comprehensive study on the land size appropriate for each type of crop to Congress for a possible re
limits of land sizes provided in this Act. (as added by Section 4, RA 9700)

SECTION 7. Priorities.
The Department of Agrarian Reform (DAR) in The DAR, in coordination with the Presidential A
coordination with the Presidential Agrarian Reform Reform Council (PARC) shall plan and program t
Council (PARC) shall plan and program the acquisition acquisition and distribution of all rem
and distribution of all agricultural lands through a period unacquired and undistributed agricultural land
of ten (10) years from the effectivity of this Act. Lands the effectivity of this Act until June 30, 2014.
shall be acquired and distributed as follows: shall be acquired and distributed as follows:

Phase One: During the five (5)-year extension

hereafter all remaining lands above fifty (50) h
Phase One: Rice and corn lands under Presidential Decree shall be covered for purposes of agrarian reform u
No. 27; all idle or abandoned lands; all private lands effectivity of this Act. All private agricultural l
voluntarily offered by the owners for agrarian reform; all landowners with aggregate landholdings in excess
lands foreclosed by the government financial institutions; (50) hectares which have already been subjecte
all lands acquired by the Presidential Commission on notice of coverage issued on or before Decem
Good Government (PCGG); and all other lands owned by 2008; rice and corn lands under Presidential Dec
the government devoted to or suitable for agriculture, 27; all idle or abandoned lands; all private
which shall be acquired and distributed immediately upon voluntarily offered by the owners for agrarian
the effectivity of this Act, with the implementation to be Provided, That with respect to voluntary land t
completed within a period of not more than four (4) years; only those submitted by June 30, 2009 sh
allowed: Provided, further, That after June 30, 20
modes of acquisition shall be limited to voluntary
sell and compulsory acquisition: Provided, furth
That all previously acquired lands wherein valu
subject to challenge by landowners shall be comple
finally resolved pursuant to Section 17 of Republic
6657, as amended: Provided, finally, as mandated
Constitution, Republic Act No. 6657, as amend
Republic Act No. 3844, as amended, only farmers
or lessees) and regular farmworkers actually till
lands, as certified under oath by the Barangay A
Reform Council (BARC) and attested under oath
landowners, are the qualified beneficiaries. The i
beneficiary shall state under oath before the judg
city or municipal court that he/she is willing to w
the land to make it productive and to assu
obligation of paying the amortization for the compe
of the land and the land taxes thereon; all lands for
by government financial institutions; all lands acqu
the Presidential Commission on Good Gove
(PCGG); and all other lands owned by the gove
devoted to or suitable for agriculture, which s
acquired and distributed immediately upon the ef
of this Act, with the implementation to be compl
 June 30, 2012;

Phase Two: All alienable and disposable public Phase Two: (a) Lands twenty-four (24) hectares up
agricultural lands; all arable public agricultural lands (50) hectares shall likewise be covered for purp
under agro-forest, pasture and agricultural leases already agrarian reform upon the effectivity of this A
cultivated and planted to crops in accordance with Section alienable and disposable public agricultural lan
6, Article XIII of the Constitution; all public agricultural arable public agricultural lands under agro
lands which are to be opened for new development and pasture and agricultural leases already cultivat
resettlement; and all private agricultural lands in excess of planted to crops in accordance with Section 6, Arti
fifty (50) hectares, insofar as the excess hectarage is of the Constitution; all public agricultural lands wh
concerned, to implement principally the rights of farmers to be opened for new development and resettleme
and regular farmworkers, who are the landless, to own all private agricultural lands of landowner
directly or collectively the lands they till, which shall be aggregate landholdings above twenty-four (24) h
distributed immediately upon the effectivity of this Act, up to fifty (50) hectares which have already been su
with the implementation to be completed within a period to a notice of coverage issued on or before Decem
of not more than four (4) years. 2008, to implement principally the rights of farm
regular farmworkers, who are landless, to own dir
collectively the lands they till, which shall be dis
immediately upon the effectivity of this Act, w
 implementation to be completed by June 30, 2012;

(b) All remaining private agricultural la

landowners with aggregate landholdings in ex
twenty-four (24) hectares, regardless as to
these have been subjected to notices of coverage
with the implementation to begin on July 1, 2012
be completed by June 30, 2013;

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

(a) Landholdings above twenty-four (24) hectares up to (a) Lands of landowners with aggregate landh
fifty (50) hectares, to begin on the fourth (4th) year from above ten (10) hectares up to twenty-four (24) h
the effectivity of this Act and to be completed within insofar as the excess hectarage above ten (10) h
three (3) years; and is concerned, to begin on July 1, 2012 and
completed by June 30, 2013; and

(b) Landholdings from the retention limit up to twenty- (b) Lands of landowners with aggregate landh
four (24) hectares, to begin on the sixth (6th) year from from the retention limit up to ten (10) hectares, t
the effectivity of this Act and to be completed within on July 1, 2013 and to be completed by June 30
four (4) years; to implement principally the right of to implement principally the right of farme
farmers and regular farmworkers who are landless, to regular farmworkers who are landless, to own
own directly or collectively the lands they till. or collectively the lands they till.

The schedule of acquisition and redistribution of all The schedule of acquisition and redistribution
agricultural lands covered by this program shall be made agricultural lands covered by this program shall b
in accordance with the above order of priority, which shall in accordance with the above order of priority, whi
be provided in the implementing rules to be prepared by be provided in the implementing rules to be prep
the Presidential Agrarian Reform Council (PARC), taking the PARC, taking into consideration the followi
into consideration the following: the need to distribute landholdings wherein the farmers are organiz
land to the tillers at the earliest practicable time; the need understand the meaning and obligations of fa
to enhance agricultural productivity; and the availability of ownership; the distribution of lands to the tillers
funds and resources to implement and support the earliest practicable time; the enhancement of agri
program. productivity; and the availability of funds and reso
implement and support the program: Provided, T
PARC shall design and conduct seminars, sy
information campaigns, and other similar progra
farmers who are not organized or not covered
landholdings. Completion by these farmers
 aforementioned seminars, symposia, and other
programs shall be encouraged in the implementa
this Act particularly the provisions of this Section.

Land acquisition and distribution shall be compl

June 30, 2014 on a province-by- province basis.
case, the PARC or the PARC Executive Com
(PARC EXCOM), upon recommendation b
In any case, the PARC, upon recommendation by the Provincial Agrarian Reform Coordinating Com
Provincial Agrarian Reform Coordinating Committee (PARCCOM), may declare certain provinces as
(PARCCOM), may declare certain provinces or regions as land reform areas, in which case the acquisiti
priority land reform areas, in which the acquisition and distribution of private agricultural lands therein
distribution of private agricultural lands therein may be advanced phases may be implemented ahead of th
implemented ahead of the above schedules. schedules on the condition that prior phases i
provinces have been completed: Provided,
notwithstanding the above schedules, phase three (
not be implemented in a particular province until
In effecting the transfer within these guidelines, priority ninety percent (90%) of the provincial balance
must be given to lands that are tenanted. The PARC shall particular province as of January 1, 2009 under
establish guidelines to implement the above priorities and One, Phase Two (a), Phase Two (b),,and Phase Th
distribution scheme, including the determination of who excluding lands under the jurisdiction of the Dep
are qualified beneficiaries: provided, that an owner-tiller of Environment and Natural Resources (DENR
may be a beneficiary of the land he does not own but is been successfully completed.
actually cultivating to the extent of the difference between
the area of the land he owns and the award ceiling of three The PARC shall establish guidelines to implem
(3) hectares. above priorities and distribution scheme, includ
determination of who are qualified beneficiaries: Pr
That an owner-tiller may be a beneficiary of t
he/she does not own but is actually cultivating
extent of the difference between the area of the land
owns and the award ceiling of three (3) hectares: Pr
further, That collective ownership by the
beneficiaries shall be subject to Section 25 of Repu
No. 6657, as amended: Provided, furthermore, Th
women shall be given the opportunity to participat
development planning and implementation of th
Provided, finally, That in no case should the a
reform beneficiaries' sex, economic, religious,
cultural and political attributes adversely aff
distribution of lands. (as amended, Section 5, RA

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 land 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 this 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. In 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. In 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. In 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 (a) Lands actually, directly and exclusively used fo
be necessary for parks, wildlife, forest reserves, wildlife, forest reserves, reforestation, fish sanctua
reforestation, fish sanctuaries and breeding grounds, breeding grounds, watersheds and mangroves s
watersheds, and mangroves, national defense, school sites exempt from the coverage of this Act.
and campuses including experimental farm stations
operated by public or private schools for educational
purposes, seeds and seedlings research and pilot (b) Private lands actually, directly and exclusively
production centers, church sites and convents appurtenant prawn farms and fishponds shall be exempt fr
thereto, mosque sites and Islamic centers appurtenant coverage of this Act: Provided, That said prawn fa
thereto, communal burial grounds and cemeteries, penal fishponds have not been distributed and Certif
colonies and penal farms actually worked by the inmates, Land Ownership Award (CLOA) issued to agrarian
government and private research and quarantine centers beneficiaries under the Comprehensive Agrarian
and all lands with eighteen percent (18%) slope and over,
except those already developed shall be exempt from the Program.
coverage of this Act.
In cases where the fishponds or prawn farms ha
subjected to the Comprehensive Agrarian Reform
voluntary offer to sell, or commercial farms defer
notices of compulsory acquisition, a simple and a
majority of the actual regular workers or tenan
consent to the exemption within one (1) year fr
effectivity of this Act. When the workers or tenants
agree to this exemption, the fishponds or praw
shall be distributed collectively to the worker-bene
or tenants who shall form a cooperative or associ
manage the same.

In cases where the fishponds or prawn farms h

been subjected to the Comprehensive Agrarian
Law, the consent of the farm workers shall no lo
necessary, however, the provision of Section 32-A
on incentives shall apply.

(c) Lands actually, directly and exclusively used an

to be necessary for national defense, school si
campuses, including experimental farm stations o
by public or private schools for educational pu
seeds and seedling research and pilot production
church sites and convents appurtenant thereto,
sites and Islamic centers appurtenant thereto, co
burial grounds and cemeteries, penal colonies an
farms actually worked by the inmates, governm
private research and quarantine centers and all lan
eighteen percent (18%) slope and over, excep
already developed, shall be exempt from the cove
this Act. (as amended by, Section 2, RA 7881)

SECTION 11. Commercial Farming.

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

If the DAR determines that the purposes for which this [REMOVES: If the DAR determines that the pu
deferment is granted no longer exist, such areas shall for which this deferment is granted no longer ex
automatically be subject to redistribution. The provisions such areas shall automatically be subject to
of Section 32 of this Act, with regard to production and redistribution.
income-sharing, shall apply to commercial farms.
The provisions of Section 32 of the Act, with re
production-and income-sharing, shall app
commercial farms.] (as amended by Section
7881)

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 hereof 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 by 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 SECTION 16. Procedure for Acquisition and
Lands. Distribution of Private Lands. (title amended by S
6, RA 9700)

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 In determining just compensation, the cost of acqui
of the land, the current value of the like properties, its of the land, the value of the standing crop, the curre
nature, actual use and income, the sworn valuation by the value of like properties, its nature, actual use and in
owner, the tax declarations, and the assessment made by the sworn valuation by the owner, the tax declaratio
government assessors shall be considered. The social and assessment made by government assessors, [ADDS
economic benefits contributed by the farmers and the seventy percent (70%) of the zonal valuation of the
farmworkers and by the Government to the property as Bureau of Internal Revenue (BIR), translated into
well as the non-payment of taxes or loans secured from basic formula by the DAR shall be considered, sub
any government financing institution on the said land shall the final decision of the proper court.] The social a
be considered as additional factors to determine its economic benefits contributed by the farmers and th
valuation. farmworkers and by the Government to the property
well as the nonpayment of taxes or loans secured fro
government financing institution on the said land sh
considered as additional factors to determine its val
(as amended by Section 7, RA 9700)

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 in 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 22-A. Order of Priority. - A landholding of a landowner shall be distributed first to qualified benef
under Section 22, subparagraphs (a) and (b) of that same landholding up to a maximum of three (3) hectare
Only when these beneficiaries have all received three (3) hectares each, shall the remaining portion of the landh
if any, be distributed to other beneficiaries under Section 22, subparagraphs (c), (d), (e), (f), and (g). (as ad
Section 8, RA 9700)

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 The rights and responsibilities of the beneficiarie
commence from the time the DAR makes an award of the commence from their receipt of a duly reg
land to him, which award shall be completed within one emancipation patent or certificate of land own
hundred eighty (180) days from the time the DAR takes award and their actual physical possession
actual possession of the land. Ownership of the awarded land. Such award shall be completed
beneficiary shall be evidenced by a Certificate of Land more than one hundred eighty (180) days from th
Ownership Award, which shall contain the restrictions and of registration of the title in the name of the Repu
conditions provided for in this Act, and shall be recorded the Philippines: Provided, That the emanc
in the Register of Deeds concerned and annotated on the patents, the certificates of land ownership awar
Certificate of Title. other titles issued under any agrarian reform pr
shall be indefeasible and imprescriptible after o
year from its registration with the Office of the R
of Deeds, subject to the conditions, limitation
qualifications of this Act, the property regis
decree, and other pertinent laws. The emanc
patents or the certificates of land ownership award
titles brought under the operation of the Torrens
are conferred with the same indefeasibility and s
afforded to all titles under the said system, as pr
for by Presidential Decree No. 1529, as amen
Republic Act No. 6732.

It is the ministerial duty of the Registry of De

 register the title of the land in the name of the R
of the Philippines, after the Land Bank
Philippines (LBP) has certified that the ne
deposit in the name of the landowner constituti
payment in cash or in bond with due notice
landowner and the registration of the certificate
ownership award issued to the beneficiaries,
cancel previous titles pertaining thereto.

Identified and qualified agrarian reform benefi

based on Section 22 of Republic Act No. 66
amended, shall have usufructuary rights ov
awarded land as soon as the DAR takes posses
such land, and such right shall not be diminishe
pending the awarding of the emancipation patent
certificate of land ownership award.

All cases involving the cancellation of reg

emancipation patents, certificates of land own
award, and other titles issued under any agrarian
program are within the exclusive and o
jurisdiction of the Secretary of the DAR. (as amen
Section 9, RA 9700)

SECTION 25. Award Ceilings for Beneficiaries.

Beneficiaries shall be awarded an area not exceeding three Beneficiaries shall be awarded an area not exceedin
(3) hectares which may cover a contiguous tract of land or (3) hectares, which may cover a contiguous tract of
several parcels of land cumulated up to the prescribed several parcels of land cumulated up to the pre
award limits. award limits. The determination of the size of the l
distribution shall consider crop type, soil type, w
patterns and other pertinent variables or factors
are deemed critical for the success of the beneficia

For purposes of this Act, a landless beneficiary is o

owns less than three (3) hectares of agricultural land

For purposes of this Act, a landless beneficiary is one who Whenever appropriate, the DAR shall encoura
owns less than three (3) hectares of agricultural land. agrarian reform beneficiaries to form or join f
cooperatives for purposes of affiliating with
The beneficiaries may opt for collective ownership, such cooperative banks in their respective provin
as co-ownership or farmers cooperative or some other localities, as well as forming blocs of agrarian
form of collective organization: provided, that the total beneficiaries, corporations, and partnerships and
area that may be awarded shall not exceed the total other farmers' collective organizations, in
number of co-owners or members of the cooperative or irrigators' associations: Provided, That the a
collective organization multiplied by the award limit reform beneficiaries shall be assured of corresp
above prescribed, except in meritorious cases as shares in the corporation, seats in the board of di
determined by the PARC. Title to the property shall be and an equitable share in the profit.
issued in the name of the co-owners or the cooperative or
collective organization as the case may be. In general, the land awarded to a farmer- ben
should be in the form of an individual title, cover
(1) contiguous tract or several parcels of land cum
up to a maximum of three (3) hectares.

The beneficiaries may opt for collective ownershi

as co-workers or farmers cooperative or some oth
of collective organization and for the issuance of co
ownership titles: Provided, That the total area that
awarded shall not exceed the total number of co-ow
members of the cooperative or collective organ
multiplied by the award limit above prescribed, ex
meritorious cases as determined by the PARC.

The conditions for the issuance of collective titles

follows:

(a) The current farm management system

land covered by CARP will not be appropr
individual farming of farm parcels;

(b) The farm labor system is specialized, wh

farmworkers are organized by functions and
specific parcels such as spraying, w
packing and other similar functions;

(c) The potential beneficiaries are curren

farming individual parcels but collectively w
large contiguous areas; and

(d) The farm consists of multiple crops

farmed in an integrated manner or includ
crop production areas that are necessary
viability of farm operations, such as
plants, storage areas, dikes, and other
facilities that cannot be subdivided or assi
individual farmers.

For idle and abandoned lands or underde

 agricultural lands to be covered by CARP, co
ownership shall be allowed only if the beneficiaries
it and there is a clear development plan that would
collective farming or integrated farm ope
exhibiting the conditions described above. Otherw
land awarded to a farmer-beneficiary should be
form of an individual title, covering one (1) con
tract or several parcels of land cumulated u
maximum of three (3) hectares.

In case of collective ownership, title to the proper

be issued in the name of the co-owners or the coop
or collective organization as the case may be.
certificates of land ownership award are gi
cooperatives then the names of the beneficiaries m
be listed in the same certificate of land ownership a

With regard to existing collective certificates

ownership award, the DAR should immediately un
the parcelization of said certificates of land ow
award, particularly those that do not exhibit the con
for collective ownership outlined above. The DA
conduct a review and redocumentation of all the co
certificates of land ownership award. The DA
prepare a prioritized list of certificates of land ow
award to be parcelized. The parcelization shall com
immediately upon approval of this Act and sh
exceed a period of three (3) years. Only those
certificates of land ownership award that are coll
farmed or are operated in an integrated manne
remain as collective. (as amended by Section
9700)

SECTION 26. Payment by Beneficiaries.

Lands awarded pursuant to this Act shall be paid for by the Lands awarded pursuant to this Act shall be paid fo
beneficiaries to the LBP in thirty (30) annual amortizations beneficiaries to the LBP in thirty (30) annual amort
at six percent (6%) interest per annum. The payments for at six percent (6%) interest per annum. The
the first three (3) years after the award may be at reduced amortization shall start one (1) year from the dat
amounts as established by the PARC: provided, that the certificate of land ownership award regis
first five (5) annual payments may not be more than five However, if the occupancy took place after the cer
percent (5%) of the value of the annual gross production as of land ownership award registration, the amor
established by the DAR. Should the scheduled annual shall start one (1) year from actual occupancy
payments after the fifth year exceed ten percent (10%) of payments for the first three (3) years after the awa
the annual gross production and the failure to produce be at reduced amounts as established by the
accordingly is not due to the beneficiary's fault, the LBP Provided, That the first five (5) annual payments m
may reduce the interest rate or reduce the principal be more than five percent (5%) of the value of the
obligations to make the repayment affordable. gross production as established by the DAR. Sho
scheduled annual payments after the fifth (5th
exceed ten percent (10%) of the annual gross pro
and the failure to produce accordingly is not due
beneficiary's fault, the LBP shall reduce the inter
and/or reduce the principal obligation to ma
repayment affordable. (As amended by Section
9700)

The LBP shall have a lien by way of mortgage on t

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

SECTION 27. Transferability of Awarded Lands.

Lands acquired by beneficiaries under this Act may not be Lands acquired by beneficiaries under this Act o
sold, transferred or conveyed except through hereditary agrarian reform laws shall not be sold, transfe
succession, or to the government, or the LBP, or to other conveyed except through hereditary succession, o
qualified beneficiaries for a period of ten (10) years: government, or to the LBP, or to other q
provided, however, that the children or the spouse of the beneficiaries through the DAR for a period of t
transferor shall have a right to repurchase the land from the years: Provided, however, That the children or the
government or LBP within a period of two (2) years. Due of the transferor shall have a right to repurchase
notice of the availability of the land shall be given by the from the government or LBP within a period of
LBP to the Barangay Agrarian Reform Committee (BARC) years. Due notice of the availability of the land
of the barangay where the land is situated. The Provincial given by the LBP to the BARC of the barangay
Agrarian Reform Coordinating Committee (PARCCOM) as the land is situated. The PARCCOM, as herein pr
herein provided, shall, in turn, be given due notice thereof shall, in turn, be given due notice thereof by the B
by the BARC.
The title of the land awarded under the agrarian
must indicate that it is an emancipation pate
 certificate of land ownership award and the sub
transfer title must also indicate that it
emancipation patent or a certificate of land ow
award

If the land has not yet been fully paid by the bene
the rights to the land may be transferred or co
with prior approval of the DAR, to any heir
If the land has not yet been fully paid by the beneficiary, beneficiary or to any other beneficiary who
the rights to the land may be transferred or conveyed, with condition for such transfer or conveyance, shall c
prior approval of the DAR, to any heir of the beneficiary or the land himself/herself. Failing compliance h
to any other beneficiary who, as a condition for such the land shall be transferred to the LBP which sh
transfer or conveyance, shall cultivate the land himself. due notice of the availability of the land in the
Failing compliance herewith, the land shall be transferred to specified in the immediately preceding paragraph.
the LBP which shall give due notice of the availability of
the land in the manner specified in the immediately In the event of such transfer to the LBP, the latt
preceding paragraph. compensate the beneficiary in one lump sum
amounts the latter has already paid, together w
value of improvements he/she has made on the l
amended by Section 12, RA 9700)
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 this 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. In 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 this 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'
organization, 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 32-A. Incentives. Individuals or entities owning or operating fishponds and prawn farms are
mandated to execute within six (6) months from the effectivity of this Act an incentive plan with their regular fi
or prawn farmworkers or fishpond or prawn farm workers' organization, if any, whereby seven point five
(7.5%) of their net profit before tax from the operation of the fishpond or prawn farms are distributed within six
days at the end of the fiscal year as compensation to regular and other pond workers in such ponds over and ab
compensation they currently receive.

In order to safeguard the right of the regular fishpond or prawn farm workers under the incentive plan, the book
fishpond or prawn farm owners shall be subject to periodic audit or inspection by certified public accountants ch
the workers.

The foregoing provision shall not apply to agricultural lands subsequently converted to fishpond or prawn
provided the size of the land converted does not exceed the retention limit of the landowner. (as added by Se
RA 7881)
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 There is hereby created the Office of Support S
under the DAR to be headed by an Undersecretary. under the DAR to be headed by an Underse

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 The Office shall provide general support and coord
farmer-beneficiaries and affected landowners: services in the implementation of the program, parti
in carrying out the provisions of the following serv
farmer beneficiaries and affected landowners:
1) Irrigation facilities, especially second crop or dry (1) Irrigation facilities, especially second crop
season irrigation facilities; season irrigation facilities;
2) Infrastructure development and public works projects (2) Infrastructure development and public works p
in areas and settlements that come under agrarian in areas and settlements that come under agrarian
reform, and for this purpose, the preparation of the and for this purpose, the preparation of the p
physical development plan of such settlements providing development plan of such settlements providing s
suitable barangay sites, potable water and power barangay sites, potable water and power res
resources, irrigation systems and other facilities for a irrigation systems, seeds and seedling banks, post
sound agricultural development plan; facilities, and other facilities for a sound agric
development plan. For the purpose of providi
aforecited infrastructure and facilities, the D
authorized to enter into contracts with interested
parties on long term basis or through joint-
agreements or build-operate-transfer scheme;
3) Government subsidies for the use of irrigation (3) Government subsidies for the use of irr
facilities; facilities;

4) Price support and guarantee for all agricultural (4) Price support and guarantee for all agric
produce; produce;
5) Extending to small landowners, farmers and farmers' (5) Extending to small landowners, farmers and f
organizations the necessary credit, like concessional and organizations the necessary credit, like concession
collateral-free loans, for agro-industrialization based on collateral-free loans, for agro-industrialization ba
social collaterals like the guarantees of farmers' social collaterals like the guarantees of f
organizations: organizations;
6) Promoting, developing and extending financial (6) Promoting, developing and extending fi
assistance to small- and medium-scale industries in assistance to small and medium-scale indust
agrarian reform areas; agrarian reform areas;
7) Assigning sufficient numbers of agricultural (7) Assigning sufficient numbers of agricultural ex
extension workers to farmers' organizations; workers to farmers' organizations;
8) Undertake research, development and dissemination (8) Undertake research, development and dissemina
of information on agrarian reform and low-cost and information on agrarian reform, plants and cro
ecologically sound farm inputs and technologies to suited for cultivation and marketing, and low-co
minimize reliance on expensive and imported ecologically sound farm inputs and technolog
agricultural inputs; minimize reliance on expensive and imported agric
inputs;

9) Development of cooperative management skills (9) Development of cooperative management

through intensive training; through intensive training;
10) Assistance in the identification of ready markets for (10) Assistance in the identification of ready mark
agricultural produce and training in other various agricultural produce and training in the other
prospects of marketing; and aspects of marketing;
11) Administration, operation, management and funding (11) Conduct an effective information dissem
of support services, programs and projects including system through the Department of Agriculture to p
pilot projects and models related to agrarian reform as marketing and minimize spoilage of agricultural p
developed by the DAR. and products;
(12) Create a credit guarantee fund for agric
landowners that will enhance the collateral va
agricultural lands that are affected or will be affe
coverage under the agrarian reform program; and
(13) Administration, operation, management and f
of support services programs and projects includin
projects and models related to agrarian refo
developed by the DAR. (as amended by Section
7905)
SECTION 36. Funding for Support Services.

In order to cover the expenses and In order to cover the expenses and In order to cover the expenses and
cost of support services, at least cost of support services, at least support services, at least forty
twenty-five percent (25%) of all twenty-five percent (25%) of all (40%) of all appropriations for a
appropriations for agrarian reform appropriations for agrarian reform reform during the five (5)-year ex
shall be immediately set aside and shall be immediately set aside and period shall be immediately set as
made available for this purpose. In made available for this purpose: made available for this p
addition, the DAR shall be Provided, That for the next five (5) Provided, That the DAR shall
authorized to package proposals and years, a minimum of one (1) integrated land acquisition
receive grants, aid and other forms Agrarian Reform Community distribution and support services s
of financial assistance from any (ARC) shall be established by the requiring a plan to be developed p
source. DAR, in coordination with the local to the land acquisition and distr
government units, non- process. The planning
governmental organizations and implementation for land acquisiti
people organizations in each distribution shall be hand-in-han
legislative district with a support services delivery:
predominant agricultural
population: Provided, further, That
the areas in which the ARCs are to
be established shall have been fully
subjected under this law.
Provided, further, That for the n
(5) years, as far as practica
minimum of two (2) Agrarian
For this purpose, an Agrarian Communities (ARCs) shall be esta
Reform Community shall be by the DAR, in coordination with t
defined as a barangay or a cluster government units, non-govern
of barangays primarily composed organizations, 'communit
and managed by Agrarian Reform cooperatives and people's organiza
Beneficiaries who shall be willing each legislative district w
to be organized and undertake the predominant agricultural pop
integrated development of an area Provided, furthermore, That the a
and/or their which the ARCs are to be esta
organizations/cooperative. In each shall have been substantially
community, the DAR, together with under the provisions of this A
the agencies and organizations other agrarian or land reform
abovementioned, shall identify the Provided, finally, That a complem
farmers association, cooperative or support services delivery strate
their respective federation existing agrarian reform benef
approved by the farmers- that are not in barangays with
beneficiaries that shall take the ARCs shall be adopted by the DAR
lead in the agricultural
development of the area. In
addition, the DAR shall be
authorized to package proposals
 and receive grants, aid and other
forms of financial assistance from
any source. (as amended by For this purpose, an Agrarian
Section 2, RA 7905) Community is composed and man
agrarian reform beneficiaries wh
be willing to be organized a
undertake the integrated developm
an area and/or their organi
cooperatives. In each communi
DAR, together with the agenci
organizations abovementioned,
identify the farmers' asso
cooperative or their res
federations approved by the fa
beneficiaries that shall take the
the agricultural development of th
In addition, the DAR, in
coordination with the congre
oversight committee created herei
due notice to the con
representative of the legislative
prior to implementation sha
authorized to package proposa
receive grants, aids and other fo
financial assistance from any sou
amended by Section 13, RA 9700

SECTION 37. Support Services to the Beneficiaries. SECTION 37. Support Services for the Agrarian
The PARC shall ensure that support services to farmer- Beneficiaries. The State shall adopt the int
beneficiaries are provided, such as: policy of support services delivery to agrarian
beneficiaries. To this end, the DAR, the Departm
Finance, and the Bangko Sentral ng Pilipinas (BSP
institute reforms to liberalize access to credit by a
reform beneficiaries. The PARC shall ensure that
services for agrarian reform beneficiaries are pr
such as:

(a) Land surveys and titling; (a) Land surveys and titling;

(b) Liberalized terms on credit facilities and production (b) Socialized terms on agricultural credit facilit
loans;
Thirty percent (30%) of all appropriati
support services referred to in Section
Republic Act No. 6657, as amended, s
 immediately set aside and made availa
agricultural credit facilities: Provided
one-third (1/3) of this segregated approp
shall be specifically allocated for subsi
support the initial capitalization for agric
production to new agrarian reform benef
upon the awarding of the emancipation
or the certificate of land ownership awa
the remaining two-thirds (2/3) shall be al
to provide access to socialized credit to e
agrarian reform beneficiaries, includi
leaseholders: Provided, further, the LB
other concerned government fi
institutions, accredited savings and
cooperatives, financial service cooperati
accredited cooperative banks shall prov
delivery system for disbursement of the
financial assistance to individual a
reform beneficiaries, holders of collectiv
and cooperatives.

For this purpose, all financing institutio

accept as collateral for loans the pu
orders, marketing agreements or e
harvests: Provided, That loans obtained s
used in the improvement or developmen
farm holding of the agrarian reform ben
or the establishment of facilities whic
enhance production or marketing of agric
products of increase farm income the
Provided, further, That of the remaining
percent (70%) for the support services,
percent (15%) shall be earmarked fo
inputs as requested by the duly acc
agrarian reform beneficiaries' organi
such as, but not limited to: (1) seeds, se
and/or planting materials; (2) o
fertilizers; (3) pesticides; (4) herbicides;
farm animals, implements/machineries; a
percent (5%) for seminars, trainings a
like to help empower agrarian
beneficiaries.

(c) Extension services by way of planting, cr

production and post-harvest technology transfer,
as marketing and management assistance and sup
 cooperatives and farmers' organizations;

(d) Infrastructure such as, but not limited to,

trails, mini-dams, public utilities, marketing and
facilities;

(c) Extension services by way of planting, cropping, (e) Research, production and use of organic fe
production and post-harvest technology transfer, as well and other local substances necessary in farmi
as marketing and management assistance and support to cultivation; and
cooperatives and farmers' organizations;
(f) Direct and active DAR assistance in the ed
(d) Infrastructure such as access trails, mini-dams, and organization of actual and potential a
public utilities, marketing and storage facilities; and reform beneficiaries, at the barangay, municipa
provincial, and national levels, towards helpin
(e) Research, production and use of organic fertilizers understand their rights and responsibilities as
and other local substances necessary in farming and cultivators developing farm-related trust relati
cultivation. among themselves and their neighbors, and inc
farm production and profitability with the ultim
of empowering them to chart their own destin
representatives of the agrarian reform beneficia
the PARC shall be chosen from the 'nominees
duly accredited agrarian reform benefi
organizations, or in its absence, from organiza
actual and potential agrarian reform beneficia
forwarded to and processed by the PARC EXCO

The PARC shall formulate policies to ensure that

services for agrarian reform beneficiaries sh
provided at all stages of the program implementati
the concurrence of the concerned agrarian
beneficiaries.

The PARC shall likewise adopt, implement, and m

policies and programs to ensure the fundamental e
of women and men in the agrarian reform prog
well as respect for the human rights, social pro
and decent working conditions of both paid and
men and women farmer-beneficiaries.
The PARC shall formulate policies to ensure that support
services to farmer-beneficiaries shall be provided at all The Bagong Kilusang Kabuhayan sa Kaunlaran (B
stages of land reform. Secretariat shall be transferred and attached to th
for its supervision including all its applicable and e
funds, personnel, properties, equipment and records

Misuse or diversion of the financial and support s

herein provided shall result in sanctions agai
 beneficiary guilty thereof, including the forfeiture
land transferred to him/her or lesser sanctions as
provided by the PARC, without prejudice to c
prosecution. (as amended by Section 14, RA 9700

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 37-A. Equal Support Services for Rural Women. Support services shall be extended equally to
and men agrarian reform beneficiaries.

The PARC shall ensure that these support services, as provided for in this Act, integrate the specific needs an
being of women farmer-beneficiaries taking into account the specific requirements of female family members of
beneficiaries.

The PARC shall also ensure that rural women will be able to participate in all community activities. To this effe
women are entitled to self-organization in order to obtain equal access to economic opportunities and to have a
agricultural credit and loans, marketing facilities and technology, and other support services, and equal treatment
reform and resettlement schemes.

The DAR shall establish and maintain a women's desk, which will be primarily responsible for formulat
implementing programs and activities related to the protection and promotion of women's rights, as well as provi
avenue where women can register their complaints and grievances principally related t o their rural activities. (a
by Section 15, RA 9700)
SECTION 38. Support Services to Landowners. The SECTION 38. Support Services for Landowners.
PARC with the assistance of such other government PARC, with the assistance of such other governmen
agencies and instrumentalities as it may direct, shall agencies and instrumentalities as it may direct, shal
provide landowners affected by the CARP and prior provide landowners affected by the CARP and prio
agrarian reform programs with the following services: agrarian reform programs with the following servic

(a) Investment information, financial and counseling (a) Investment information, financial and cou
assistance; assistance, particularly investment informati
government-owned and/or -controlled corporatio
disposable assets of the government in pur
national industrialization and economic independ

(b) Facilities, programs and schemes for the con

(b) Facilities, programs and schemes for the conversion or exchange of bonds issued for payment of th
or exchange of bonds issued for payment of the lands acquired with stocks and bonds issued by the N
acquired with stocks and bonds issued by the National Government, the BSP and other government inst
Government, the Central Bank and other government and instrumentalities;
institutions and instrumentalities;
(c) Marketing of agrarian reform bonds, as well
(c) Marketing of LBP bonds, as well as promoting the promoting the marketability of said bonds in trad
marketability of said bonds in traditional and non- and non-traditional financial markets and stock
traditional financial markets and stock exchanges; and exchanges: and/or

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

A landowner who invests in rural-based industries shall be A landowner who invests in rural-based industries
entitled to the incentives granted to a registered enterprise entitled to the incentives granted to a registered en
engaged in a pioneer or preferred area of investment as engaged in a pioneer or preferred area of investm
provided for in the Omnibus Investment Code of 1987, or provided for in the Omnibus Investment Code of 1
to such other incentives as the PARC, the LBP, or other to such other incentives as the PARC, the LBP, o
government financial institutions may provide. government financial institutions shall provide.

The LBP shall redeem a landowner's LBP bonds at face The LBP shall redeem a landowner's agrarian
value, provided that the proceeds thereof shall be invested bonds at face value as an incentive: Provided, That
in a BOI-registered company or in any agri-business or fifty percent (50%) of the proceeds thereof s
agro-industrial enterprise in the region where the invested in a Board of Investments (BOI)-reg
landowner has previously made investments, to the extent company or in any agri-business or agro-in
of thirty percent (30%) of the face value of said LBP enterprise in the region where the CARP-c
bonds, subject to guidelines that shall be issued by the landholding is located. An additional incentive
LBP. percent (2%) in cash shall be paid to a landown
maintains his/her enterprise as a going concern
(5) years or keeps his/her investments in a BOI- reg
 firm for the same period: Provided, further, T
rights of the agrarian reform beneficiaries are not
way, prejudiced or impaired thereby.

The DAR, the LBP and the Department of Tra

Industry shall jointly formulate the program to ca
these provisions under the supervision of the
Provided, That in no case shall the landowner
economic, religious, social, cultural and p
attributes exclude them from accessing these
services. (as amended by Section 16, RA 9700)

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 timber 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 engage 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. If 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
spouses 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 The Presidential Agrarian Reform Council (PARC
be composed of the President of the Philippines as be composed of the President of the Philipp
Chairman, the Secretary of Agrarian Reform as Vice- Chairperson, the Secretary of Agrarian Reform a
Chairman and the following as members; Secretaries of Chairperson and the following as members: Secret
the Departments of Agriculture; Environment and Natural the Departments of Agriculture; Environment and
Resources; Budget and Management; Local Government: Resources; Budget and Management; Interior and
Public Works and Highways; Trade and Industry; Finance; Government; Public Works and Highways; Tra
Labor and Employment; Director-General of the National Industry; Finance; and Labor and Employment; D
Economic and Development Authority; President, Land General of the National Economic and Devel
Bank of the Philippines; Administrator, National Irrigation Authority; President, Land Bank of the Phili
Administration; and three (3) representatives of affected Administrator, National Irrigation Adminis
landowners to represent Luzon, Visayas and Mindanao; Administrator, Land Registration Authority; and
six (6) representatives of agrarian reform beneficiaries, representatives of affected landowners to rep
two (2) each from Luzon, Visayas and Mindanao, Luzon, Visayas and Mindanao; six (6) represen
provided that one of them shall be from the cultural of agrarian reform beneficiaries, two (2) each
communities. Luzon, Visayas and Mindanao: Provided, That
one (1) of them shall be from the indigenous p
Provided, further, That at least one (1)of them
come from a duly recognized national organiza
rural women or a national organization of a
reform beneficiaries with a substantial num
women members: Provided, finally, That at least
percent (20%) of the members of the PARC s
women but in no case shall they be less than two
amended by Section 17, RA 9700)

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 A Provincial Agrarian Reform Coordinating Comm
(PARCCOM) is hereby created in each province, hereby created in each province, composed of a Ch
composed of a Chairman, who shall be appointed by the who shall be appointed by the President up
President upon the recommendation of the EXCOM, the recommendation of the EXCOM, the Provincial A
Provincial Agrarian Reform Officer as Executive Officer, Reform Officer as Executive Officer, and o
and one representative each from the Departments of representative each from the Departments of Agri
Agriculture, and of Environment and Natural Resources and of Environment and Natural Resources and fr
and from the LBP, one representative each from existing LBP; one (1) representative each from existing f
farmers' organizations, agricultural cooperatives and non- organizations, agricultural cooperatives and
governmental organizations in the province; two governmental organizations in the province; tw
representatives from landowners, at least one of whom representatives from landowners, at least one (1) of
shall be a producer representing the principal crop of the shall be a producer representing the principal crop
province, and two representatives from farmer and province, and two (2) representatives from farm
farmworker-beneficiaries, at least one of whom shall be a farmworkers or beneficiaries, at least one (1) of
farmer or farmworker representing the principal crop of shall be a farmer or farmworker representing the p
the province, as members: provided, that in areas where crop of the province, as members: Provided, That i
there are cultural communities, the latter shall likewise where there are cultural communities, the latte
have one representative. likewise have one (1) representative.

The PARCCOM shall coordinate and monitor the

implementation of the CARP in the province. It shall
provide information on the provisions of the CARP, The PARCCOM shall coordinate and monit
guidelines issued by the PARC and on the progress of the implementation of the CARP in the province.
CARP in the province. provide information on the provisions of the
guidelines issued by the PARC and on the progres
CARP, in the province; in addition, it shall:

(a) Recommend to the PARC the following:

(1) Market prices to be used in the determination

profit sharing obligation of agricultural entities
province;

(2) Adoption of the direct payment scheme betw

landowner and the farmer and/or farmworker bene
Provided, that the amount and terms of payment
more burdensome to the agrarian reform beneficia
under the compulsory coverage provision of the
Provided, further, That the agrarian reform ben
agrees to the amount and terms of payment: Pr
furthermore, That the DAR shall act as mediator i
of disagreement between the landowner and the
and/or farmworker beneficiary; Provided, finally, T
farmer and/or farmer beneficiary shall be elig
borrow from the LBP an amount equal to eig
percent (85%) of the selling price of the land th
have acquired;
 (3) Continuous processing of applications for leas
arrangements, joint-venture agreements and
schemes that will optimize the operating si
agricultural production and also promote both sec
tenure and security of income to farmer benefi
Provided, That lease back arrangements should be
resort. (as amended by Section 3, RA 7905)

SECTION 45. Province-by-Province Implementation.

The PARC shall provide the guidelines for a province-by- The PARC shall provide the guidelines for the p
province implementation of the CARP. The ten-year by-province implementation of the CARP, taki
program of distribution of public and private lands in each account the peculiarities and needs of each place,
province shall be adjusted from year to year by the crops needed or suited, land distribution wo
province's PARCCOM in accordance with the level of beneficiaries development activities and other
operations previously established by the PARC, in every prevalent or obtaining in the area. In all ca
case ensuring that support services are available or have implementing agencies at the provincial leve
been programmed before actual distribution is effected. promote the development of identified ARCs
neglecting the needs and problems of
beneficiaries. The ten-year program of distribu
public and private land in each province shall be
from year to year by the province's PARCC
accordance with the level of operations pre
established by the PARC, in every case ensuri
support services are available or have been prog
before actual distribution is effected. (as amen
Section 4, RA 7905)

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. If 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 primary jurisdiction to The DAR is hereby vested with primary jurisdic
determine and adjudicate agrarian reform matters and determine and adjudicate agrarian reform matt
shall have exclusive original jurisdiction over all matters shall have exclusive original jurisdiction over all
involving the implementation of agrarian reform except involving the implementation of agrarian reform,
those falling under the exclusive jurisdiction of the those falling under the exclusive jurisdiction
Department of Agriculture (DA) and the Department of Department of Agriculture (DA) and the DENR.
Environment and Natural Resources (DENR).
 It shall not be bound by technical rules of proced
It shall not be bound by technical rules of procedure and evidence but shall proceed to hear and decide al
evidence but shall proceed to hear and decide all cases, disputes or controversies in a most expeditious m
disputes or controversies in a most expeditious manner, employing all reasonable means to ascertain the
employing all reasonable means to ascertain the facts of every case in accordance with justice and equity
every case in accordance with justice and equity and the merits of the case. Toward this end, it shall a
merits of the case. Toward this end, it shall adopt a uniform rule of procedure to achieve a just, exp
uniform rule of procedure to achieve a just, expeditious and inexpensive determination of every act
and inexpensive determination for every action or proceeding before it.
proceeding before it.

It shall have the power to summon witnesses, adm

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

Responsible farmer leaders shall be allowed to re

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

Notwithstanding an appeal to the Court of Appe

Notwithstanding an appeal to the Court of Appeals, the decision of the DAR shall be immediately ex
decision of the DAR shall be immediately executory. except a decision or a portion thereof involving
the issue of just compensation. (as amended by
18, RA 9700)

SECTION 50-A. Exclusive Jurisdiction on Agrarian Dispute. No court or prosecutor's office shall take cog
of cases pertaining to the implementation of the CARP except those provided under Section 57 of Republic
6657, as amended. If there is an allegation from any of the parties that the case is agrarian in nature and on
parties is a farmer, farmworker, or tenant, the case shall be automatically referred by the judge or the prosecuto
DAR which shall determine and certify within fifteen (15) days from referral whether an agrarian dispute
Provided, That from the determination of the DAR, an aggrieved party shall have judicial recourse. In cases refe
the municipal trial court and the prosecutor's office, the appeal shall be with the proper regional trial court, and
referred by the regional trial court, the appeal shall be to the Court of Appeals.

In cases where regular courts or quasi-judicial bodies have competent jurisdiction, agrarian reform benefici
identified beneficiaries and/or their associations shall have legal standing and interest to intervene concerni
individual or collective rights and/or interests under the CARP.

The fact of non-registration of such associations with the Securities and Exchange Commission, or Coo
Development Authority, or any concerned government agency shall not be used against them to deny the exis
their legal standing and interest in a case filed before such courts and quasi-judicial bodies. (as added by Sec
RA 9700)

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 Except for the Supreme Court, no court
any restraining order or writ of preliminary injunction Philippines shall have jurisdiction to iss
against the PARC or any of its duly authorized or restraining order or writ of preliminary in
designated agencies in any case, dispute or controversy against the PARC, the DAR, or any of
arising from, necessary to, or in connection with the authorized or designated agencies in any case,
application, implementation, enforcement, or interpretation or controversy arising from, necessary to,
of this Act and other pertinent laws on agrarian reform. connection with the application, impleme
enforcement, or interpretation of this Act an
pertinent laws on agrarian reform. (as amen
Section 20, RA 9700)

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. In 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 from
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 The amount needed to implement this The amount needed to
implement this Act for the period Act until the year 2008 shall be implement the CARP as prov
of ten (10) years upon approval funded from the Agrarian Reform this Act, until June 30, 2014
hereof shall be funded from the Fund. expiration of funding under Re
Agrarian Reform Fund created Act No. 8532 and other pe
under Sections 20 and 21 of laws, shall be funded fro
Executive Order No. 229. Agrarian Reform Fund and
funding sources in the amoun
least One hundred fifty billion
(P150,000,000,000.00).

Additional amounts are hereby

Additional amounts are hereby Additional amounts necessary for this authorized to be appropriated a
authorized to be appropriated as purpose are hereby authorized to be when needed to augment the
and when needed to augment the appropriated in excess of the initial Agrarian Reform Fund in orde
Agrarian Reform Fund in order to funds, amounting to Fifty billion fully implement the provisions
fully implement the provisions of pesos (P50,000,000,000.00) provided this Act during the five (5)-yea
this Act. under Sections 20 and 21 of Executive
 Order No. 229. extension period.

The additional amount hereby

authorized to be appropriated shall in
no case exceed Fifty billion pesos
(P50,000,000,000.00).

Sources of funding or appropriations

shall include the following: Sources of funding or appropr
Sources of funding or shall include the following:
appropriations shall include the
following:
(a) Proceeds of the sales of the a) Proceeds of the sales of the Assets (a) Proceeds of the sales
Assets Privatization Trust; Privatization Trust; Privatization and Management
(PMO);
(b) All receipts from assets b) All receipts from assets recovered b)All receipts from assets rec
recovered and from sales of ill- and from sales of ill-gotten wealth and from sales of ill-gotten
gotten wealth recovered through recovered through the Presidential recovered through the
the Presidential Commission on Commission on Good Government; excluding the amount appropria
Good Government; compensation to victims of
rights violations under the app
law;
(c) Proceeds of the disposition c) Proceeds of the disposition of the (c) Proceeds of the disposition a
of the properties of the properties of the Government in development of the properties o
Government in foreign foreign countries, for the specific Government in foreign countrie
countries; purposes of financing production the specific purposes of financin
credits, infrastructure and other production credits, infrastructur
support services required by this Act; other support services required b
Act;

d) All income and collections arising (d) All income and collecti
from the agrarian reform operations, whatever form and nature
projects and programs of CARP from the agrarian reform ope
implementing agencies; projects and programs of the DA
other CARP implementing agen

(d) Portion of amounts accruing e) Portion of amounts accruing to the (e) Portion of amounts accruing
to the Philippines from all Philippines from all sources of official Philippines from all sources of
sources of official foreign grants foreign aid grants and concessional foreign aid grants and conce
and concessional financing from financing from all countries, to be financing from all countries, to b
all countries, to be used for the used for the specific purposes of for the specific purposes of fin
specific purposes of financing financing production, credits, productions, credits, infrastru
production credits, infrastructures, and other support and other support services requ
infrastructures, and other services required by this Act; this Act;
support services required by this
Act;
f) Yearly appropriations of no less (f) Yearly appropriations of no l
than Three billion pesos than Five billion pesos
(P3,000,000,000.00) from the General (P5,000,000,000.00) from the G
Appropriations Act; Appropriations Act;
g) Other government funds not (g) Gratuitous financial assistan
otherwise appropriated. (as amended from legitimate sources; and
by Section 1, RA 8532)
(e) Other government funds not (h) Other government funds not
otherwise appropriated. otherwise appropriated.

All funds appropriated to All funds appropriated to impl

implement the provisions of this the provisions of this Act sh
Act shall be considered considered con
continuing appropriations during appropriations during the pe
the period of its implementation its implementation: Provided
if the need arises, specific am
for bond redemptions, in
payments and other e
obligations arising from
implementation of the pr
shall be included in the a
General Appropriations
Provided, further, That a
compensation payments
landowners, including execu
judgments therefor, shall on
sourced from the Agrarian R
Fund: Provided, however, Th
compensation payments
cannot be covered within
approved annual budget o
program shall be charg
against the debt service prog
the national government, o
unprogrammed item in the G
Appropriations Act: Pro
finally, That after the comple
the land acquisition and distr
component of the CARP, the
appropriation shall be allo
fully to support services, ag
 justice delivery and oper
requirements of the DAR an
other CARP implem
agencies. (as amended by S
21, RA 9700)

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 After the lapse of five (5) years from its award, w
land ceases to be economically feasible and sound for land ceases to be economically feasible and sou
agricultural purposes, or the locality has become urbanized agricultural purposes, or the locality has become ur
and the land will have a greater economic value for and the land will have a greater economic va
residential, commercial or industrial purposes, the DAR, residential, commercial or industrial purposes, the
upon application of the beneficiary or the landowner, with upon application of the beneficiary or the landown
due notice to the affected parties, and subject to existing respect only to his/her retained area which is te
laws, may authorize the reclassification or conversion of with due notice to the affected parties, and sub
the land and its disposition: provided, that the beneficiary existing laws, may authorize the reclassificat
shall have fully paid his obligation. conversion of the land and its disposition: Provide
if the applicant is a beneficiary under agrarian la
the land sought to be converted is the land awa
him/her or any portion thereof, the applicant, a
conversion is granted, shall invest at least ten
(10%)of the proceeds coming from the conver
government securities: Provided, further, Th
applicant upon conversion shall fully pay the pric
land: Provided, furthermore, That irrigated and ir
lands, shall not be subject to conversion: Pr
finally, That the National Irrigation Administratio
submit a consolidated data on the location nation
all irrigable lands within one (1) year from the ef
of this Act.

Failure to implement the conversion plan within

years from the approval of such conversion plan
violation of the conditions of the conversion order
the fault of the applicant shall cause the l
automatically be covered by CARP. (as amend
Section 22, RA 9700)
Section 65-A. Conversion into Fishpond and Prawn Farms. No conversion of public agricultural la
fishponds and prawn farms shall be made except in situations where the provincial government with the concur
the Bureau of Fisheries and Aquatic Resources (BFAR) declares a coastal zone as suitable for fishpond develop
such case, the Department of Environment and Natural Resources (DENR) shall allow the lease and developmen
areas: Provided, That the declaration shall not apply to environmentally critical projects and areas as containe
(A) sub-paragraph two, (B-5) and (C-1) and title (B), number eleven (11) of Proclamation No. 2146,
"Proclaiming Certain Areas and Types of Projects as Environmentally Critical and Within the Scope
Environmental Impact Statement (EIS) System established under Presidential Decree No. 1586," to ensure the p
of river systems, aquifers and mangrove vegetations from pollution and environmental degradation: Provided,
That the approval shall be in accordance with a set of guidelines to be drawn up and promulgated by the DAR
BFAR: Provided, furthermore, That small-farmer cooperatives and organizations shall be given preference in th
of the Fishpond Lease Agreement (FLAs).

No conversion of more than five (5) hectares of private lands to fishpond and prawn farms shall be allowed
passage of this Act, except when the use of the land is more economically feasible and sound for fishpond and/o
farm, as certified by the Bureau of Fisheries and Aquatic Resources (BFAR), and a simple and absolute majori
regular farm workers or tenants agree to the conversion, the Department of Agrarian Reform, may approve app
for change in the use of the land: Provided, finally, That no piecemeal conversion to circumvent the provision
Act shall be allowed. In these cases where the change of use is approved, the provisions of Section 32-A h
incentives shall apply. (as added by Section 5, RA 7881)

Section 65-B. Inventory. Within one (1) year from the effectivity of this Act, the BFAR shall undertake and
inventory of all government and private fishponds and prawn farms, and undertake a program to promote the su
management and utilization of prawn farms and fishponds. No lease under Section 65-A hereof may be gran
after the completion of the said inventory.

The sustainable management and utilization of prawn farms and fishponds shall be in accordance with the
standards, pollution charges and other pollution control measures such as, but not limited to, the quantity of fe
pesticides and other chemicals used, that may be established by the Fertilizer and Pesticide Authority (F
Environmental Management Bureau (EMB), and other appropriate government regulatory bodies, and
regulations governing water utilization, primarily Presidential Decree No. 1067, entitled "A Decree Instituting
Code, Thereby Revising and Consolidating the Laws Governing the Ownership, Appropriation, Utilization, Exp
Development, Conservation and Protection of Water Resources. (as added by Section 5, RA 7881)

Section 65-C. Protection of Mangrove Areas. In existing Fishpond Lease Agreements (FLAs) and those tha
issued after the effectivity of this Act, a portion of the fishpond area fronting the sea, sufficient to pro
environment, shall be established as a buffer zone and be planted to specified mangrove species to be determ
consultation with the regional office of the DENR. The Secretary of Environment and Natural Resources shall
the penalties for any violation of this undertaking as well as the rules for its implementation. (as added by Se
RA 7881)
Section 65-D. Change of Crops. The change of crops to commercial crops or high value crops shal
considered as a conversion in the use or nature of the land. The change in crop should, however, not prejudice t
of tenants or leaseholders should there be any and the consent of a simple and absolute majority of the affec
workers, if any, shall first be obtained. (as added by Section 5, RA 7881)

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 In cases falling within their jurisdiction, no injunc
shall be issued by the lower courts against the Department restraining order, prohibition or mandamus shall be
of Agrarian Reform (DAR), the Department of Agriculture by the regional trial courts, municipal trial courts,
(DA), the Department of Environment and Natural municipal circuit trial courts, and metropolitan tri
Resources (DENR), and the Department of Justice (DOJ) courts against the DAR, the DA, the DENR, and th
in their implementation of the program. Department of Justice in their implementation of th
program. (as amended by Section 23, RA 9700)

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: The following are prohibited:

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

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

(c) The conversion by any landowner of his agricultural (c) Any conversion by any landowner of
land into any non-agricultural use with intent to avoid the agricultural land into any non-agricultural u
application of this Act to his landholdings and to intent to avoid the application of this Act to
dispossess his tenant farmers of the land tilled by them; landholdings and to dispossess his/her bonafid
farmers;
(d) The willful prevention or obstruction by any person,
association or entity of the implementation of the CARP; (d) The malicious and willful prevention or obs
by any person, association or entity
(e) The sale, transfer, conveyance or change of the nature implementation of the CARP;
of lands outside of urban centers and city limits either in
whole or in part after the effectivity of this Act. The date (e) The sale, transfer, conveyance or change
of the registration of the deed of conveyance in the nature of lands outside of urban centers and ci
Register of Deeds with respect to titled lands and the either in whole or in part after the effectivity of
date of the issuance of the tax declaration to the except after final completion of the app
transferee of the property with respect to unregistered conversion under Section 65 of Republic Act N
lands, as the case may be, shall be conclusive for the as amended. The date of the registration of the
purpose of this Act. conveyance in the Register of Deeds with re
titled lands and the date of the issuance of
declaration to the transferee of the property with
to unregistered lands, as the case may be,
(f) The sale, transfer or conveyance by a beneficiary of conclusive for the purpose of this Act;
the right to use or any other usufructuary right over the
land he acquired by virtue of being a beneficiary, in (f) The sale, transfer or conveyance by a benef
order to circumvent the provisions of this Act. the right to use or any other usufructuary right
land he/she acquired by virtue of being a benefi
order to circumvent the provisions of this Act;

(g) The unjustified, willful, and malicious a

responsible officer or officers of the gov
through the following:

(1) The denial of notice and/or reply to lando

(2) The deprivation of retention rights;

(3) The undue or inordinate delay in the pre

of claim folders; or

(4) Any undue delay, refusal or failure

payment of just compensation;

(h) The undue delay or unjustified failure of the D

LBP, the PARC, the PARCCOM, and any co
government agency or any government offi
employee to submit the required report, data and/
official document involving the implementation
provisions of this Act, as required by the partie
government, including the House of Representati
the Senate of the Philippines as well as their re
committees, and the congressional oversight co
created herein;
 (i) The undue delay in the compliance with the ob
to certify or attest and/or falsification of the cert
or attestation as required under Section 7 of Repu
No. 6657, as amended; and

(j) Any other culpable neglect or willful violation

provisions of this Act.

In the case of government officials and emplo

conviction under this Act is without prejudice to a
case and/or appropriate administrative proceeding
civil service law, rules and regulations. Any
convicted under this Act shall not be entitled to an
provided for in any agrarian reform law or prog
amended by Section 24, RA 9700)

Section 73-A. Exception. The provisions of Section 73, paragraph (e), to the contrary
notwithstanding, the sale and/or transfer of agricultural land in cases where such sale, transfer or
conveyance is made necessary as a result of a bank's foreclosure of the mortgaged land is hereby
permitted. (as added by Section 6, RA 7881)

Section 74. Penalties.

Any person who knowingly or willfully violates the Any person who knowingly or willfully vio
provisions of this Act shall be punished by imprisonment of provisions of this Act shall be punished by impr
not less than one (1) month to not more than three (3) years of not less than one (1) month to not more than
or a fine of not less than one thousand pesos (P1,000.00) years or a fine of not less than One thousa
and not more than fifteen thousand pesos (P15,000.00), or (P1,000.00) and not more than Fifteen thousa
both, at the discretion of the court. (P15,000.00), or both, at the discretion of t
Provided, That the following corresponding
shall be imposed for the specific violations here

(a) Imprisonment of three (3) years and one (

six (6) years or a fine of not less than Fifty
pesos (P50,000.00) and not more than One
fifty thousand pesos (P150,000.00), or bot
discretion of the court upon any person who
Section 73, subparagraphs (a), (b), (f), (g), a
Republic Act No. 6657, as amended; and

(b) Imprisonment of six (6) years and one (

twelve (12) years or a fine of not less t
hundred thousand pesos (P200,000.00) and
than One million pesos (P1,000,000.00), or bo
 discretion of the court upon any person who
Section 73, subparagraphs (c), (d), (e), a
Republic Act No. 6657, as amended.

If the offender is a corporation or association, the o

responsible therefor shall be criminally liable. (as
by Section 25, RA 9700)

If the offender is a corporation or association, the officer

responsible therefor 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. 3844, 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

New Provisions in RA 9700 which did not repeal, neither amend nor supersede
any provision in RA 6657

Section 26. Congressional Oversight Committee. A Congressional Oversight Committee on

Agrarian Reform (COCAR) is hereby created to oversee and monitor the implementation of this
Act. It shall be composed of the Chairpersons of the Committee on Agrarian Reform of both
Houses of Congress, three (3) Members of the House of Representatives, and three (3) Members
of the Senate of the Philippines, to be designated respectively by the Speaker of the House of
Representatives and the President of the Senate of the Philippines.
The Chairpersons of the Committees on Agrarian Reform of the House of Representatives and of
the Senate of the Philippines shall be the Chairpersons of the COCAR. The Members shall
receive no compensation; however, traveling and other necessary expenses shall be allowed.

In order to carry out the objectives of this Act, the COCAR shall be provided with the necessary
appropriations for its operation. An initial amount of Twenty-five million pesos
(P25,000,000.00) is hereby appropriated for the COCAR for the first year of its operation and the
same amount shall be appropriated every year thereafter.

The term of the COCAR shall end six (6) months after the expiration of the extended period of
five (5) years.

Section 27. Powers and Functions of the COCAR. The COCAR shall have the following
powers and functions:

(a) Prescribe and adopt guidelines which shall govern its work;

(b) Hold hearings and consultations, receive testimonies and reports pertinent to its
specified concerns;

(c) Secure from any department, bureau, office or instrumentality of the government such
assistance as may be needed, including technical information, preparation and production
of reports and submission of recommendations or plans as it may require, particularly a
yearly report of the record or performance of each agrarian reform beneficiary as
provided under Section 22 of Republic Act No. 6657, as amended;

(d) Secure from the DAR or the LBP information on the amount of just compensation
determined to be paid or which has been paid to any landowner;

(e) Secure from the DAR or the LBP quarterly reports on the disbursement of funds for
the agrarian reform program;

(f) Oversee and monitor, in such a manner as it may deem necessary, the actual
implementation of the program and projects by the DAR;

(g) Summon by subpoena any public or private citizen to testify before it, or require by
subpoena duces tecum to produce before it such records, reports, or other documents as
may be necessary in the performance of its functions;

(h) Engage the services of resource persons from the public and private sectors as well as
civil society including the various agrarian reform groups or organizations in the different
regions of the country as may be needed;

(i) Approve the budget for the work of the Committee and all disbursements therefrom,
including compensation of all personnel;
 (j) Organize its staff and hire and appoint such employees and personnel whether
temporary, contractual or on constancy subject to applicable rules; and

(k) Exercise all the powers necessary and incidental to attain the purposes for which it is
created.

Section 28. Periodic Reports. The COCAR shall submit to the Speaker of the House of
Representatives and to the President of the Senate of the Philippines periodic reports on its
findings and recommendations on actions to be undertaken by both Houses of Congress, the
DAR, and the PARC.

Section 29. Access to Information. Notwithstanding the provisions of Republic Act No. 1405
and other pertinent laws, information on the amount of just compensation paid to any landowner
under Republic Act No. 6657, as amended, and other agrarian reform laws shall be deemed
public information.

Section 30. Resolution of Case. Any case and/or proceeding involving the implementation of
the provisions of Republic Act No. 6657, as amended, which may remain pending on June 30,
2014 shall be allowed to proceed to its finality and be executed even beyond such date.

Section 31. Implementing Rules and Regulations. The PARC and the DAR shall provide the
necessary implementing rules and regulations within thirty (30) days upon the approval of this
Act. Such rules and regulations shall take effect on July 1, 2009 and it shall be published in at
least two (2) newspapers of general circulation.

Section 32. Repealing Clause. Section 53 of Republic Act No. 3844, otherwise known as the
Agricultural Land Reform Code, is hereby repealed and all other laws, decrees, executive orders,
issuances, rules and regulations, or parts thereof inconsistent with this Act are hereby likewise
repealed or amended accordingly.

Section 33. Separability Clause. If, for any reason, any section or provision of this Act is
declared unconstitutional or invalid, the other sections or provisions not affected thereby shall
remain in full force and effect.

Section 34. Effectivity Clause. This Act shall take effect on July 1, 2009 and it shall be
published in at least two (2) newspapers of general circulation.