I. Land Reform vs.

Agrarian Reform

• Reform – “connotes change from the existing agrarian condition of the country; it
implies the existence of shortcomings and defects which very urgently necessitate
corrective measures (Quijano, 5.a.5.a.)

Land Reform Agrarian Reform

“[i]n a limited sense refer to Land Ownership- “[r]efers to the relationship that exist between
the earth where we live and which we cultivate man and his land a well as that between man
(Quijano, 5.a.5.b)” and fellow countryman. It denotes not only
private ownership of land and its
accompanying problems but all possible
undertaking which will improve the lot of man,
the tiller of the soil (Quijano, 5.a.5c.)”
Land Reform is the physical redistribution of
“means the redistribution of lands, regardless
land such as the program under PD 27 –
of crops or fruits produced, to farmers and
DECREEING THE EMANCIPATION OF
regular farmworkers who are landless,
TENANTS FROM THE BONDAGE OF THE
irrespective of tenurial arrangement, to include
SOIL, TRANSFERRING TO THEM THE
the totality of factors and support services
OWNERSHIP OF THE LAND THEY TILL
designed to lift the economic status of the
AND PROVIDING THE INSTRUMENTS
beneficiaries and all other arrangements
AND MECHANISM THEREFOR (Atty. Joy
alternative to the physical redistribution of
Casis, CARL Outline, December 2010)
lands, such as production or profit-sharing,
labor administration, and the distribution of
stock, which will allow beneficiaries to receive
a just share of the fruits of the lands they work.
[Section 3 (a) of RA 6657]

“Land Reform Plus Man Reform (Quijano,

5.a.3.a.)

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II. Components of Agrarian Reform

A. Land Tenure Improvement Program — Regulation of private ownership of lands.

B. Physical Development — needed infrastructure i.e., irrigation system, roads, ports,

electrification, school building and social and recreational facilities.

C. Institutional Development — Establishment of Farmers Cooperative and organizing

farmers into effective production units.

D. Agricultural Development — aims at increasing the production capabilities of farmers

especially the emancipated tenant-tillers.

E. Human Resource Development-Clientele and personal training which aims to

increase the capabilities of the farmers, the landowner and the community at large to
work toward growth and increasing the competencies of the government worker or
change-agent who is entrusted with the implementation of the program. (Quijano,
5.a.5.d.)

III. Stages of Philippine Agrarian Reform

A. Share Tenancy

1. RA 1199 – The Agricultural Tenancy Act of the Philippines (1954)

2. Agricultural tenancy is the physical possession by a person of land devoted to
agriculture, belonging to or legally possessed by another for the purpose of
production through the labor of the former and of the members of his immediate
farm household in consideration of which the former agrees to share the harvest
with the latter or to pay a price certain or ascertainable, either in produce or in
money, or in both [Section 3 of RA 1199]
3. "A tenant shall mean a person who himself and with the aid available from within
his immediate farm household, cultivates the land belonging to or possessed by,

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 another, with the latters consent for purpose of production, sharing the produce
with the landholder under the share tenancy system, or paying the landholder a
price certain or ascertainable in produce or in money or both, under the leasehold
tenancy." (Sec. 5, (a), RA 1199)
4. "A landholder shall mean a person, natural or judicial, who either as owner,
lessee, usufructuary, or legal possessor, lets or grant to another the use or
cultivation of his land for a consideration either in shares under the share tenancy
system or a price certain or ascertainable under the leasehold tenancy system."
(Sec. 5 (b), RA 1199)
5. Types of tenancy relation

a. Leasehold tenancy
b. Sharehold tenancy

Leasehold tenancy Sharehold Tenancy

Tenant/lessee always shoulder all The tenant shoulders labor + any of
items of production except the land the items of contributions such as
farm implements, work animals, final
harrowing, and transplanting.
The tenant/lessee is the sole manager. The tenant and the landholder are co-
managers
The tenant/lessee gets the whole The tenant and landholder divide the
produce with the mere obligation to harvest in proportion to their
pay a fixed rental. contributions.

(People vs. Elias Adillo, G.R. No. L-23785, November 27, 1975)

6. Share tenancy - exist whenever two persons agree on a joint undertaking wherein
one party furnishes the land and the other his labor, with either or both
contributing any one or several of the items of production, the tenant cultivating

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 the land personally with the aid of labor available from members of his immediate
farm household and the produce thereof to be divided between the landholder and
the tenant in proportion to the respective contributions." (Sec. 4, RA 1199).

7. Essential Elements of Tenancy Relationship:

a. The parties are the landholder and the tenant.

b. The subject is agricultural land.

c. There is consent.

d. The purpose is agricultural production.

e. There is personal cultivation.

f. There is sharing of harvest or payment of rentals. (Caballes vs. DAR, 168

SCRA 247; Qua vs. Court of Appeals, 198 SCRA 247).

8. Rules on sharing of crops other than Rice. (Sec. 41, Chapter III, RA 1199)

a. Contract stipulating the ratio of crop division;

b. Custom of the place

c. Minimum share of the tenant is thirty percent of the harvest of produce.

9. Sec. 14 of the Tenancy Act (RA 1199), grants the tenant the option to elect the
leasehold tenancy, whereas Sec. 35 (RA 3844) exempts coconut lands from
leasehold. The inconsistency is resolved by Sec. 172 (RA 3844) which ordains
that "all laws or parts of any law inconsistent with this Code are hereby repealed.
(Rodinas vs. Fuentes, CA. G.R. Nos. 04595-98-SP, July 16, 1976)

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B. Agricultural Leasehold

1. RA 3844 – Agricultural Land Reform Code of the Philippines (August 8, 1963)

2. Parties in Agricultural Leasehold

a. Agricultural landlord/lessor – the person (natural or juridical) who furnishes

the land as an owner, civil law lessee, usufructuary, or legal possessor who
lets or grants to another the cultivation and use of his land for a price certain
b. Agricultural lessee – cultivates the land belonging to or possessed by another
with the latter consent for purposes of production, for a price certain in money
or in produce or both.

3. Agricultural leasehold in general:

a. The agricultural leasehold relation shall be established by:

1. Operation of law in accordance with Sec. 4, RA 3844.

2. Orally or in writing, express or impliedly. (Sec. 5, RA 3844)

b. Obligations of the Agricultural Lessee (Duties and Responsibilities (Sec. 26,

RA 3844).

1. Cultivate and Take care of the farm, growing crops & other
improvements. Perform all work in accordance with the proven farm
practices.

2. Inform the lessor of trespass committed by 3rd persons w/o prejudice to

his direct action against the trespasser.

3. Take reasonable care of work animals and farm implements delivered to

him by the lessor and see to it that it is not used for purposes than, those
intended or by another without the knowledge and consent of the lessor.

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 4. Keep the farm and growing crops attended to during the work season.

5. To pay the lease rentals to the lessor when it falls due.

c. Rights of the Agricultural Lessor (Sec. 29, RA 3844)

1. To Inspect and observe the extent of compliance with the terms and
conditions of the leasehold contract.

2. To Propose a change in the use of the landholding to other agricultural

purposes, or in the kind of crops planted.

3. To require the lessee, to adopt proven farm practices necessary to the

conservation of the land, improvement of the fertility and increase in
productivity;

4. To Mortgage Expected rentals.

d. Possession of Landholding; Exceptions. (Sec. 36) — The agricultural lessee

shall continue in the ENJOYMENT and POSSESSION of his landholding
except if his dispossession is authorized by the Court in a judgment that is
final and executory if after due hearing it is shown that:

1. The agricultural lessor-owner or a member of his family will personally

cultivate the landholding (Amended by Sec. 7, RA 6389; Sequi vs. Vera,
CA-G.R. No. 00975-R. Oct. 22, 1975). Or will convert the landholding
into residential, factory, hospital, school site or other useful non-
agricultural purposes. Provided that Disturbance Compensation equivalent
to five times the average of the gross harvest on his landholding during the
last five preceding calendar years (Sec. 7, RA 6389 (Amendment) The
tenant have the right to demand possession and claim damages if the
landholder is in Bad Faith by not cultivating the land himself for three

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 years or fails to substantially carry out such conversion within one year
after the dispossession of the tenant.

2. The agricultural lessee failed to substantially comply with any of the terms
and conditions of the contract or any provision of this Code unless his
failure is causes by fortuitous event or force majeure.

3. The agricultural lessee planted crops or used the landholding for a

purpose other than what had been previously agreed upon.

4. The agricultural lessee failed to adopt proven farm practices.

5. The land or other substantial permanent improvement is substantially

damaged or destroyed or has unreasonably deteriorated through the fault
or negligence of the agricultural lessee.

6. The agricultural lessee does not pay the lease rental when it falls due
provided that if non-payment is due to crop failure to the extent of 75% as
a result of fortuitous event, it cannot be a ground for dispossession
although the obligation to pay the rental due that particularly crop is not
thereby extinguished.

7. The lessee employed a sub-lessee on the landholding.

e. Extinguishment of Agricultural Leasehold Relation

1. Abandonment of the landholding without the knowledge of the

agricultural lessor. (Teodoro vs. Macaraeg, 27 SCRA 7 (1969))

2. Voluntary surrender of the landholding by the agricultural lessee, written

notice of which shall be served three months in advance (Nisnisan, et al.,
vs. CA, 294 SCRA 173 (1998)).

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 3. Absence of a person under Sec. 9 to succeed to the lessee in the event of
death or permanent incapacity of the lessee.

f. Other related laws and issuances:

1. P.D. No. 152 (March 31,1973), Prohibits the employment or use of share-
tenants in complying with the requirements of the law regarding entry,
occupation, improvement and cultivation of public lands.

2. P.D. No. 583 (November 10, 1974), prescribed penalty for the unlawful
ejectment, exclusion, removal or ouster of tenant-farmers from their
landholdings.

3. P.D. No. 816 (October 21, 1975) penalized any agricultural lessee of rice
and corn lands under PD 27 who deliberately refuses or continue to refuse
to pay rentals or amortization when they are due and remain unpaid within
a period of two years.

4. P.D. No. 1425 (June 10, 1978) strengthened the prohibition against the
practice of share tenancy and providing penalties thereof. Under this
Decree any tenant who refuses to enter into leasehold contract may be
prosecuted before the Court of Agrarian Relations.

5. P.D. No. 1040 (October 21, 1976) prohibited and penalized the contracting
of share tenants in all agricultural land covered by P.D. 27.

C. Full Ownership

1. P.D. 27 – The Land Reform Program, salient points:

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a. It applies to TENANT-FARMERS of private agricultural lands primarily
devoted to rice and corn under a system of share-crop or lease tenancy,
whether classified as land estate or not.
b. The tenant-farmer is DEEMED OWNER of a family size farm of five (5)
hectares if not irrigated and three (3) hectares if irrigated.

c. The landowner may retain an area of not more then seven (7) hectares if he is
cultivating such area or will now cultivate it.

d. The value if the land shall be equivalent to two and one half (2-1/2) times the
AVERAGE HARVEST OF THREE NORMAL CROP YEARS
IMMEDIATELY PRECEDING THE PROMULGATION OF THIS
DECREE.

e. The tenant shall pay for THE COST OF THE LAND, including interest of six
(6) percent per annum in FIFTEEN (15) YEARS of fifteen (15) equal annual
amortizations.

NOTE: The period is extended to twenty (20) years equal annual amortization
under Sec. 6, E.O. 228 of July 17, 1987 by Pres. Corazon C. Aquino.

f. The FARMER'S COOPERATIVE pays the amortization if the tenant defaults

in payment of amortization. The cooperative shall have a RIGHT OF
RECOURSE against the member tenant.
g. The TITLE to the land owned by the tenant shall not be transferable except
BY HEREDITARY SUCCESSION or TO THE GOVERNMENT in
accordance with this Decree, the Code of Agrarian Reform and other existing
laws and regulation.

h. The Department of Agrarian Reform through its Secretary is hereby

empowered to promulgate rules and regulations for the implementation of this
Decree.

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2. R.A. 6657 – Comprehensive Agrarian Reform Law of 1988 – The purpose of the
law is to attain agrarian reform, rural development, and industrialization.

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