SALIENT FEATURS OF AGRARIAN LAND REFORM (R.A.

6657)& R.A 9700- Carper

By Vicente R. Dalanon, LLb.
Real Estate Broker Lic No. 397-R

CONCEPT OF AGRARIAN REFORM

Agrarian reform is the redistribution of public and private agricultural lands,
regardless of produce and tenurial arrangement, to landless garmers and regular farm
workers, to include support services and other arrangements alternative to distribution of
land such as production/ profit sharing, labor organization, or distribution of shares of
stock.

Republic Act No. 9700

Actual and Physical Distribution
The CARPER law specifies that award of land must be actual and
physical possession of the land which is in contrast to non-distributed
schemes like Stock-Distribution Option and Leaseback arrangements.
This can be the basis for the farmers to demand from the DAR for an
actual and physical award of the land to them and they can legally
reject any non-distributive schemes similar to the Hacienda Luisita
experience.
EXEMPTION AND EXCLUSIONS
The following are exempt form coverage of the agrarian reform law:
1. Lands actually, directly and exclusively used for prawn farms and fishponds
provided that they have not been distributed and Certificates of Land Ownership
Award (CLOA) issued to agrarian reform beneficiaries.
2. Land devoted to the raising of livestock, poultry or swine.
3. Agricultural lands reclassified either as residential, commercial or industrial thru
zoning ordinances approved by the Housing and Land Use Regulatory Board
before June 15, 1988.
4. Agricultural lands with 18% slope or more.
5. Lands actually, directly and exclusively used and found necessary for parks,
wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds,
watersheds and mangroves.

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6. Lands actually, directly and exclusively used and found necessary for national
defense, school sites, church sites, mosque sites, communal burial grounds, and
penal colonies.
RETENTION LIMITS
1. Maximum Area, General Rule Landowners are entitled to retain not more than
five hectares. Three hectares may be awarded to each child of the landowner who
is at least fifteen years old as of June 15, 1988 and actually tilling the land or
directly managing the farm.
2. Exemptions The following landowners may be allowed bigger retention:
a) Landowners whose lands were covered by then Presidential Decree 27
shall be allowed to keep the original seven hectares retained by them.
b) Original homestead grantees or direct compulsory heirs who still own the
original homestead shall retain the same areas as long as they continue to
cultivate said areas.
3. Retention by Spouses:
a) For marriage covered by the Civil Code In the absence of an agreement
for absolute separation of property before the marriage, spouses who own
only conjugal properties may retain a maximum of five hectares from such
properties. However, if either or both of them are landowners in their
respective rights (meaning the husband and the wife own capital and
paraphernal lands, respectively) each of them may retain a maximum of
five hectares from their respective lands, but in no case shall the total
retention of said couple exceed ten hectares.
b) For marriages covered by the Family Code (August 3, 1988) f the
spouses executed an agreement for absolute separation of properties
before the marriage, the husband who owns capital lands and the wife who
owns paraphernal lands, may each retain a maximum of five hectares from
their respective properties. In the absence of such ante-nuptial agreement
for absolute separation of properties, all properties belonging to said
spouses shall be considered in absolute community, and the said spouses
can retain only a total of five hectares.
Republic Act No. 9700
Retention Limit Exemption Of Local Government
Units (LGUs)

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c) LGUs except the Barangays can own agricultural lands beyond the five
(5)-hectare limit set by CARL. This privilege is only applicable to lands
that will be used for public purposes such as roads, bridges, public
markets, school, resettlement, LGU facilities, public parks and barangay
plazas. There are two limitations to this exemption:1.) the use of the land
must be actual, direct and exclusive; and 2.) the use must be consistent
with the approved comprehensive land use plan. Moreover, if the land is
covered under CARP and the LGU wants to use it for one of the public
purpose mentioned earlier then it must be expropriated first and the
farmers therein must be justly compensated.
d)
COMPENSATION TO LANDOWNERS
1. Land Valuation As may be agreed upon between the landowner and the
Department of Agrarian Reform and Land Bank of the Philippines, or in case of
disagreement, as may be determined by the court.
2. Mode of Payment (at option of landowner):
a) Cash Payment:
Above 50 has.

- 25% cash and balance in government

negotiable instruments

Above 24 to 50 has.

- 30% cash and balance in government

negotiable instruments

24 has.and below

- 35% cash and balance in government

negotiable instruments

b) Land Bank preferred shares or bonds

c) Shares of stock in government corporations
d) Tax Credits
VALID TRANSACTIONS INVOLVING AGRICULTURAL LAND
1. Sale to private parties, regardless of hectarages. Executed before the effectivity of
R.A. 6657 9Juen 15, 1988) provided the sale is registered with the Register of
Deeds within three months from June 15, 1988.

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2. Sale to private parties executed after the effectivity of R.A. 6657 covering areas
allowed to be retained in favor of transferess whose total landholdings, including
the land to be acquired, do not exceed five hectares.
3. Sale in favor of the government, Land Bank or DAR regardless of hectarages.
4. Sale by agrarian reform beneficiaries after ten years from the issuance and
registration of land ownership award (CLOA).
PURCHASE OF AGRICULTURAL LAND
1. When the area consists of five hectares or less, the sale requires DAR clearance.
The application for DAR clearance is submitted to the Municipal Agrarian
Reform Officer and accompanied, among others, by:
a) Certified copy of OCT?TCT of the land, or tax declaration if land is not
covered by a certificate of title
b) Duplicate copy or certified true copy of the deed or instrument of
conveyance
c) Sellers affidavit that the hectarage he is selling is his retention area.
d) Buyers affidavit that the hectarage he is buying, together with his present
agricultural landholding , if any, does not exceed five hectares.
e) Sellers affidavit of no-tenancy or tenants affidavit of voluntary
surrender , as the case may be.
2. When the area is five hectares or less but buyer will use the land for nonagricultural purpose, or when the area consists of more than five hectares
regardless of the buyers intended utilization, what is required is DAR conversion.
3. Sale by Agrarian Reform Beneficiaries (ARBs) In all cases, lands awarded to
ARBs may only be sold by them after the issuance of DAR clearance, subject to
the following policies:
a) Any change from agricultural use shall not be allowed except with the
DAR approval under its rules on conversion
b) The buyer will not exceed the aggregate ownership ceiling of five hectares
c) If the ARB was identified as tenant as of October 21, 1972 and
amortizations were fully paid, the land may be sold by the original tenant
or his heirs regardless of the date of issuance of Emancipation Patent.

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d) If the land was identified as tenanted after 1972, the sale may be allowed
only after ten years from the date of recognition of tenants.
VOLUNTARY OFFER TO SELL
1. Landowners whose lands are subject for coverage under R.A. 6657 may
voluntarily offer their lands for sale to the government. However, lands for which
notices of coverage have already been sent by the government and received by the
landowner shall no longer be considered as voluntarily offered lands.
2. The DAR may reject a voluntary offer to sell under the following circumstances:
a) The land is not suitable for agriculture or is undeveloped, and has a slope
of more than 18%
b) When there ar no takers or willing agrarian reform beneficiary for valid
reasons, such as peace and order situation in the area.
3. Withdrawal of voluntary offer to sell shall no longer be allowed after the letter
offer for VOS is received by DAR. Except when the landholding is determined by
DAR to be more suitable for a townsite, resettlement site or institutional site
needed to address a matter of national interest or concern in a calamity situation.
Republic Act No. 9700
No More Voluntary Land Transfer (VLT) After June 30, 2009

Compulsory Acquisition and Voluntary Offer To Sell will be the main

mode of land acquisition when the law takes effect. Many studies have
shown that VLT has been abused by the landowners to put people who
are not qualified or people who are loyal to them as beneficiaries. A
cut-off date for VLT applications has been set on June 30, 2009. No VLT
applications will be allowed after July 1, 2009.
CONVERSION OF AGRICULTURAL LAND
1. Areas Non-Negotiable for Conversion The following areas shall not be subject
to or non-negotiable for conversion:
a) Agricultural lands within protected areas designated under the National
Integrated Protected Areas System (NIPAS), including watershed and
recharged areas for acquifiers, as determined by DENR.
b) All irrigated lands, as delineated by the Department of Agriculture (DA)
and/or the National Irrigation Administration (NIA), where water is
available to support rice and other crop production, and all irrigated lands
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where water is not available but are within areas programmed for
irrigation facility rehabilitation by the DAR and/or NIA.
c) All irrigable lands already covered by irrigation projects with firm funding
commitments, as delineated by DA and/or NIA.
d) All agricultural lands with irrigation facilities operated by private
organizations.

CONVERSION OF AGRICULTURAL LAND Republic Act No.

9700
The CARPER law strengthens the ban on any conversion of irrigated and irrigable lands
and mandates the National Irrigation Administration to identify these. Moreover, it also
legislates the resolution of the Sumilao farmers case that the non-implementation or
violation of the conversion plan will result to automatic coverage of the subject by
CARP
Under the CARPER law, any conversion to avoid CARP coverage is a
prohibited act. The word any makes the defense of good faith or
ignorance of the law untenable Moreover the penalty for conversion is
heavier. It will merit imprisonment of 6 to 12 years and/ or a penalty of
200,000 pesos to 1 million pesos
2. Areas Highly Restricted for Conversion - The following areas shall be classified
as highly restricted for conversion:
a) Irrigable lands not covered by irrigation projects with firm funding
commitment
b) Agro-industrial croplands, or land presently planted to industrial crops that
support the economic viability of existing agricultural infrastructure and
agro-based enterprises
c) Highlands or areas located in elevations of 500 meters or above and have
the potential for growing semi-temperate and usually high value crops
d) Environmentally critical areas (ECAs) as determined by the DENR.
e) Lands issued with notice of valuation and acquisition, or subject of a
perfected agreement between the landowner and the beneficiaries under
voluntary land transfer/direct payment scheme (VLT/DPS) under the
Comprehensive Agrarian Reform Program
Applications for conversion involving areas highly restricted from conversion shall
require, apart from the standard requirements, a project feasibility study and
environmental compliance certificate (ECC) if within ECAs.
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3. Priority Development Areas The following are considered priority development

areas for conversion:
a) Specific areas in regional agri-industrial centers/regional industrial centers
(RAICs/RICs) identified by the Department of Trade and Industry (DTI)
and the DA
b) Tourism development areas (TDAs) identified by the Deaprtment of
Tourism (DOT) as indicated in the current Medium Term Philippine
Development Plan
c) Sites identified and proposed to be developed by local government units
into socialized housing projects which are presently used for agricultural
purposes.
d) Agricultural areas intended for ECOZONE Projects pursuant to RA 7916.
In priority development areas, an ECC shall not be a pre-condition to the approval of
the conversion application; instead, it shall form part of the conditions thereof where
applicable.
4. Standard Documentary Requirements for Conversion Application.
a) Notarized application for conversion
b) Special power of attorney if applicant is not the registered owner, or board
resolution authorizing applicant if the owner is a corporation
c) True copy of OCT/TCT as certified by the Register of Deeds not later than
thirty days prior to filing. In case of untitled land, the following shall be
submitted in lieu of title:
aa) Certification from the DENR Community Environment and Natural
Resources Officer (CENRO) that the landholding has been classified
as alienable and disposable; and
bb) Certification from the DENR CENRO (for administrative
confirmation of imperfect title) or the Clerk of Court (for judicial
conformation of imperfect title) that the titling process has been
commenced and there are no averse claimants)
d) Recent 5R photographs of the property duly certified by the
photographer/applicant

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e) Socio-economic benefit cost study inclusive of detailed site development

and work and financial plan
f) Proof of financial and organizational capability to develop land, including
developers profile, financial statement authenticated by a certified public
accountant, and articles of incorporation or partnership if applicant is a
corporation or partnership
g) List of tenants/farm workers/ bona fide occupants who will be affected by
the land use conversion, and proof of payment or agreement to pay
disturbance compensation duly attested to by the MARO.
h) Certification from the HLURB Regional Officer or the Deputized Zoning
Administrator of the actual zoning classification of the land, citing the
Municipal or City Zoning Ordinance and the date of its approval by the
HLURB or the Sangguniang Panlalawigan, as the case may be.
i) Certification from the authorized DA official stating, among others, the
classification of the land, its convertibility status whether non-negotiable
or highly restricted from conversion and its irrigation coverage and
suitability for agriculture.
j) Certification from the DENR Regional Executive Director that the area
subject of application for conversion is not within the NIPAs, not within
environmentally critical areas, and will not involve the establishment of an
environmentally critical project.
5. Special Documentary Requirements for Conversion Application:
a) If applicant is beneficiary of agrarian reform program:
aa) Certification from Provincial Agrarian Reform Officer (PARO) that at
least five years have lapsed since the award of the land.
bb) Certification from the Land Bank that the beneficiary has fully paid
his obligation
cc)
Joint venture agreement or any other business arrangement
between the beneficiary and the developer.
b) If application involves priority development areas Endorsement from the
government agencies in case of priority development areas; Provided, that
an endorsement from the HLURB is needed if the project is for socialized
housing; Provided, further, that a board resolution approving the project
from Philippine Economic Zone Authority (PEZA) shall be required if the
area is intended for ECOZONE projects.

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c) If area is highly restricted from conversion Project feasibility study.

d) If application involves ECAs or ECPs Environmental Compliance
Certificate

CONVERSION OF AGRICULTURAL LAND Republic Act No.

9700
The law on conversion will still apply to the LGUs because the
public purpose projects will entail conversion of agricultural
lands to non-agricultural uses. The LGUs are not exempted
from the application of the Conversion Order from DAR.

Republic Act No. 9700

Gender-Sensitive Agrarian Reform
The CARPER law institutionalizes reforms recognizing the
rights of rural women to be beneficiaries of the CARP and to
have meaningful participation in its planning and
implementation. Aside from making the language of all the
provisions of the law gender-neutral, the policy statement
declares the right of rural women
the State shall recognize and enforce, consistent with existing
laws, the rights of rural women to own and control land, taking
into consideration the substantive equality between men and
women as qualified beneficiariesto receive a just share of the
fruits thereof, and to be represented in advisory or appropriate
decision-making bodies. These rights shall be independent of
their male relatives and of their civil status.
The design of the support services of the ARBs takes into
account the specific needs of rural women through the creation
of a womens desk. Moreover, rural women will have a
representative in the highest policy make body of DAR which is
the Presidential Agrarian Reform Council (PARC) ensuring also
that the composition of the PARC will have 20% women
members.

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Republic Act No. 9700

Tenants and Regular Farmworkers Are First Priority Beneficiaries
This provision was formulated and strongly advocated by
Rep. Pablo Garcia (hence this was known as the Garcia Amendment).
The provision provides that in a certain landholding the qualified
beneficiaries who are tenants and regular farmworkers will receive 3
hectares each before distributing the remaining land to the other
qualified beneficiaries like seasonal farmworkers and other
farmworkers under
Section 22 of CARL.
U
n Republic Act No. 9700
Attestation Requirement of Farmer Beneficiary

der

Another Garcia Amendment, under the CARPER law a new

procedure for the identification of agrarian reform beneficiaries
requires the Barangay Agrarian Reform Council (BARC) to first
certify that the potential beneficiaries are Farmers or Regular
Farmworkers actually tilling the lands and the list should by
attested under oath by the Landowner and lastly will state
under oath before a judge that he/she is willing to work on the
land and make it productive and assume the obligation of
paying the amortization.
Republic Act No. 9700
Shortened Period For Installation of Farmer
Beneficiaries
The CARPER law mandates that the award of the land must
be completed within 180 days from the date of registration of
title in the name of the Republic of the Philippines. Such period
is shorter than that of CARL.
Another reform that can help shorten the period for installation is the
inclusion of the standing crop in the computation of the just
compensation for the land. This is the learning from the
Hacienda Malaga Case were the only reason for the delay in
installation is the standing crop. From experience, delay in
installation causes violence and insecurity to the farmers. The
CARPER law emphasize that farmer beneficiaries will only start
payment of amortization if they have been physically installed
on the awarded land for one (1

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) year

. Republic Act No. 9700

Indefeasibility of Emancipation Patent and CLOA
The CARPER law legislates the Supreme Court decision in Estribillo vs.
DAR (G.R. No. 159674, June 30, 2006) declaring titles of land awarded under
any agrarian reform program are indefeasible and imprescriptible. The titles (i.e.
EP and CLOA) will be afforded the same protection as Torrens title under the
Torrens system. This provision provides protection to the CLOAs or EPs of
farmers being cancelled after it has been registered already for a long time.
Republic Act No. 9700
Affordability Clause Made Mandatory
The CARPER law explicitly mandates that farmers will pay
reduced amortizations established by PARC for the first 3 years.
For the next years, the law put a ceiling on the annual
amortization to not more than 5% to 10% of the value of the
annual gross production. The Land Bank of the Philippines (LBP)
is mandated to reduce the interest or the principal to make
repayment affordable. The amortization depends on the annual
gross production determined by the DAR which will effectively
make the amortization of farmer beneficiaries affordable

6. Disturbance Compensation:
a) Disturbance compensation in cash or in kind or both shall be paid by the
landowner or developer as may be appropriate to tenants, farmworkers, or
bona fide occupants such amounts or under such terms as may be mutually
agreed upon, but which shall not be less than five times the average gross
harvests on their landholding during the last five preceding calendar years
b) Compensation in kind may consists of free housing, homelots,
employment, and other benefits. The DAR shall approve the terms of any
agreement for the disturbance compensation and monitor compliance
therewith. In no case shall compliance with the terms of the agreement
extend beyond sixty days from date of approval of conversion application.
c) In case of disagreement between the parties on the disturbance
compensation, the issue may be brought by either of them before the DAR
Adjudication Board.
7. Officials authorized to Approve/Disapprove Conversions:
a) The DAR Regional director for areas of not more than five hectares
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b) The duly authorized DAR Undersecretary for areas above five hectares but
not more than fifty hectares
c) The DAR Secretary for areas of more than fifty hectares, except for those
highly restricted from conversion which shall be subject to his approval
regardless of the area.
Republic Act No. 9700
II.LAND ACQUISITION AND DISTRIBUTION
150-B Budget For CARPER Implementation
The budget allocated for the 5-year extension is 150 Billion
pesos which will be sourced from three funds namely: 1.)
Agrarian Reform Fund, 2.) other sources of funding like
privatization of government asset, foreign donors, etc. and 3.)
General Appropriations Acts (GAA). So far, this budget is the
largest per year in the history of CARP.
Another improvement in the CARP budget is the continuing
appropriation during the 5-year period and the clarification
that interest payments of the bonds and just compensation
used to acquire private lands will be part of the debt servicing
in the GAA or any unprogrammed items in the GAA. This will
ensure that the landowners will be paid. The usual complaint
of landowners in the implementation of the program is that
they are not paid for their land taken under CARP
Republic Act No. 9700
Phasing Schedule of LAD To Ensure Completion by June 14,
2014
Under the CARPER law, Congress updated the phasing of the
LAD implementation in the CARP for the next five (5) years.
The first phase will cover the landholdings 24 hectares and
above which have been issued notice of coverage by
December 10, 2008, government lands and those offered
under Voluntary Land Transfer (VLT) and Voluntary Offer to Sell
(VOS).

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Republic Act No. 9700

Phasing Schedule of LAD To Ensure Completion by June 14,
2014
This phase will start on July 1, 2009 and should be completed
on June 30, 2012. The second phase will cover the
landholdings 24 hectares and above which have not been
issued notice of coverage by December 10, 2008 and all
landholdings below 24 but above 10 hectares which have
been issued notice of coverage by December 10, 2008. This
phase will start on July 1, 2012 to June 30, 2013. The last
phase covers below 10 hectares. However, this last phase will
only begin if all the previous phase has been 90% completed
in a particular province. The last phase will start on July 1,
2013 and end on June 30, 2014. Public Agricultural lands will
not be covered by the phasing and can be covered anytime

THANK YOU!
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