SSC 103

PRINCIPLES OF
ECONOMICS W/ LAND
REFORM & TAXATION
SELF-PACED LEARNING MODULE

FINAL ISSUE

ARVIN O. ROSETE, LPT

(Instructor)
0963-517-0423

[email protected]
VIN ROSETE OFFICIAL

1|P age
Dear Learner,

Greetings of Peace and May God bless you always!

Welcome to Second Semester of Academic Year 2021-2022!
This Academic Year is quite different from other school years and terms you have enrolled. Due to the global
pandemic brought about by the novel- Corona Virus Disease 2019 (COVID-19), the means and ways of education
delivery has been shaped to a new form. Amidst the global pandemic, the Commission on Higher Education (CHED)
and your school- The Great Plebeian College continue to look for ways and alternatives for us to be able continue
provide a relevant and quality learning and training assuring that quality and safety are our top consideration. The
traditional modality of the education sector is highly affected but, we, your teachers, continue to strive and look forward
of providing you an accessible, affordable and easy access modal of learning for you to cope up with the trends of the
21st century education and the so-called “New Normal”. We are on the transition era- from residential to non-residential
classes, to assure that this global crisis couldn’t be a hindrance for you to learn and dream.
This learning module is specially designed to cope with your education needs since face-to-face learning is
not yet possible. Learning tasks, activities, graphic representations, reading texts, study guides, among others, are
provided in this module for a thorough study at home. Every lesson is aligned with the appropriate learning objectives
and learning outcomes as prescribed by the Commission on Higher Education. You will accomplished every task within
a given time frame as stipulated at the study guide of this module.
We hope that this “new normal” of learning will provide a platform to be productive in your studies despite the
fact that you will be learning at the comforts of your home. It is indeed, a new experience to us all to adjust and adapt.
It may seem difficult at first but embracing with a whole heart, this will become a reality. The support and cooperation
of our stakeholders will surely make the impossible – Possible! With a helping hands, we will overcome this; we will
make it through!
Should you have any questions, feel free to reach me through my mobile number and social media accounts.
It is my deep pleasure of extending my helping hand to you, dear learner. We are one in this horrible and challenging
times!

Sincerely,
MR. ARVIN O. ROSETE, LPT

2|P age
COURSE GUIDES:

Greetings of Good Health!

The key of passing this course is simply a matter of having self-discipline and proper attitude.
This course aims to equip learners the foundation and concepts related in the studies of Economics
and Economic Development. But aside from simply knowing the concepts and theories associated to
Principles of Economics, the student’s needs to deeply understand the essence of studying this course
as an academic discipline. And to properly and orderly do it, students are highly encouraged to follow
the simple guide enlisted in this module:

1. Schedule and manage your time to read and understand every part of this module. Read it
with your soul and heart; and with passion. Advance reading is also highly encouraged.
2. Create a plan and study how can you able manage and do the task and activities stipulated in
this module. Follow the proper compilation of student activities as prescribed by your
teacher. Try to establish a deep sense of understanding on the questions that designed to
develop the higher way of thinking.
3. Log in regularly to the course. Make it as a daily habit to create a time plan according to the
schedule of your course. Stay tune also for important announcements that will be posted or
disseminated by your teacher.
4. Do not procrastinate. Procrastination only leads to the delay of your task. Stick to your time
plan for the easier flow of study. Remember that it is only you who will do the work.
5. Before you start doing your task, make sure to read and understand the assessment tools
provided. Do not just settle for less but rather, aim for the best. Your teacher knows that YOU
CAN!
6. You are here to browse and read the different notes and to test your schema about the course.
Try to expound your best idea in answering the test guides, lesson guides, topic questions,
etc.
7. DO NOT PLAGIARIZE and patch write. Believe in yourself. Plagiarism and patch writing will
only expose your weakness. Remember that plagiarism is a sin.
8. Follow the schedule of course activities. Always remind yourself of deadlines. Read in
advance to anticipate possible adjustments to your class schedule of events.
9. Lastly, PRAY. Always ask the guidance and blessings of the Lord Almighty for all the strength
and wisdom that He endowed upon you. Stay safe, follow the minimum health standards and
together, we can surpass this challenge.

EVALUATION
In order to pass the course, you must:

1. Attend all course requirements and submit them according to the set deadlines.
2. Make sure to incur a passing mark in every quizzes set by the teacher.
3. Make sure to pass the four (4) major examinations: Prelim, Midterm, Semi-Finals and Finals.

3|P age
OVERVIEW:

You are probably wondering why we need to study economics. The answer is actually very
simple – we use it every day. We hear so often in the news reports how fuel prices go up and down.
We may expect transport strikes demanding for roll back in gasoline prices or increased fare. In our
daily commute to work or school, we experience traffic situations. We may think that roads are nor
wide enough or there are just too many vehicles plying the streets. We regularly go to grocery stores
to shop for our daily needs. There are times we observe several items on sale. It is difficult to miss
these daily experiences and we cannot deny their relations to economics. So think about it, is it
important for one to learn about economics?

As learners tries to dig into the content of this self-paced learning module, they will be able
equip themselves with necessary lessons, skills, attitudes and capabilities needed in fully
understanding what Economics is.

TABLE OF CONTENTS

Chapter 1 – Agrarian Reform ------------------------------- 5

Chapter 2 – Comprehensive Agrarian Reform
Program ------------------------------- 18

4|P age
 CHAPTER 1 – AGRARIAN REFORM

Learning Objectives:

At the end of this discussion, students should be able:

1. Discuss what is Agrarian Reform (LO1);

2. Cite and explain the different aspects where agrarian reform is rooted (LO1, LO2, LO3); and
3. Critically analyze the functions of the Philippine Agrarian Reform Program in alleviating the
lives of the marginalized populace (LO1, LO2, LO3, LO6)

LESSON 1 – INTRODUCTION TO AGRARIAN REFORM

The issue of a genuine agrarian reform program in the Philippines is, as many historians say,
a "centuries-old problem” since the Spanish and American colonial periods to the present. It remains
until now, a clamor of landless Filipino farmers. It is still an issue and “a promise often heard during
presidential election campaigns, but finally sidelined, unheard of, or even forgotten once the votes
are cast."
Agrarian reform was one of the major demands in the 1896 Katipunan uprising. Since then,
successive administrations, from Quezon in 1933 to Aquino in 1988, attempted to implement
different agrarian reform programs. But all of these government reforms were perceived to be
ineffective. It has been nothing but a matter of sugarcoating empty promises to the farmers and
reassuring the landlords of their interests, when and, draws a deadlock to genuine and significant
changes. These changes should ameliorate the socio-economic structures that keep the majority of
the Filipinos as landless tillers who are tied to tenancy and hence, to poverty.
Advocates of a genuine agrarian reform, particularly the landless tillers, do not ask for
absolute equality. They wanted their emancipation from the bondage of the soil that has persisted
for a long time. This kind of bondage is another form of slavery. It is the root of dominance and
inequality over the weak and marginalized poor. This exploitation has been committed and will
continue to be committed, unless a genuine agrarian reform program is finally realized.
The implementation of a genuine agrarian reform program in the Philippines would improve
the lives of marginalized Filipino farmers and farmworkers, who directly benefit from the program.
The Philippines, being rich in agricultural resources, will also benefit tremendously from the
program.

5|P age
 LESSON 2 – ESSENTIAL CONCEPTS

Reform is a change in something, a process or an act to achieve improvements in its current

state or quality.
Land reform is a measure to be undertaken to improve the relationship between the tillers
and the landowner, with regards to the former's rights and privileges in the land they are nurturing.
Land reform was used to connote agricultural reform programs during the American colonial
period in the Philippines until President Diosdado Macapagal's administration. During the latter's
government, a land-reform program to mend the landlord-tenant relationship was introduced.
Through this, the control and ownership of the agricultural land were to be transferred to the tenant.
It merely meant landownership redistribution, and covered rice lands. This was implemented by the
Department of Agrarian Reform (DAR) alone and its beneficiaries were tenant-farmers only. Then
being viewed as a limited definition, the term has been replaced with “agrarian reform" during the
Marcos administration.
Agrarian reform pursues a broader improvement, not only on the land ownership, but also in
the agrarian system and processes as a whole. This includes credit measures, product development,
modes of production, trainings, and finances. Agrarian reform programs are either government
initiated or government-backed.
During the Aquino administration, a Comprehensive Agrarian Reform Program (CARP) was
initialized through the Comprehensive Agrarian Reform Law or CARL (R.A. No. 6657). It was signed
on June 10, 1988 by President Cory Aquino and took effect on June 15, 1988. It aims to rationalize
the distribution and use of all lands suitable for agriculture and attempts to bring about social equity
and economic prosperity. Specifically, it seeks to improve the living conditions of the farmers, making
them more independent, and self-reliant, and the source of genuine strength of a Philippine
democratic society. The Aquino government marked it as its centerpiece program.

LESSON 3 – OTHER CONNOTATIONS OF AGRARIAN REFORM

Agrarian reform is a reform and development program assisted by various government

agencies, for the advancement of its beneficiaries, mostly landless farmers.
It is a package of support services, price regulations, and government assistance on matters
related to legal aid, consultation, counseling, and building of infrastructure that would benefit the
farmers among others.

6|P age
 It is an intervention, which is not only limited to the concerns of land use and distribution,
but also engaged in other related concerns, including economic, social, and political issues.
It is concerned not only with the beneficiaries and the land they till but likewise with the
community they live in.
Therefore, agrarian reform is construed as "land reform plus social reforms and support
services.”

PRINCIPLES OF AGRARIAN REFORM

Agrarian reform can be established from the 1987 Philippine Constitution and various papal
social encyclicals that the basic principle of any agrarian reform is social justice. This means that the
democratization of income and wealth is realized by giving the marginalized farmers an equal access
to land as their basic productive resource.
Another principle in the implementation of agrarian reform is just compensation of the
landowners. Fair market value should be considered in assessing the lands to be redistributed.
The principal players of agrarian reform include not only the farmer-beneficiaries, but also
the affected landowners. Together, they will work with the concerned government agencies in the
preparation, planning, and implementation of the program.
The affected landowners and landlords must share with the landless tillers the lands they
have acquired and benefited from over the years, and shift towards industrialization and other
entrepreneurial activities. This is not merely a legal duty, but more importantly, a moral one.

LESSON 4 – ASPECTS OF AGRARIAN REFORM

The aspects of agrarian reform explain why an authentic and aggressive agrarian reform is
an urgent necessity in the Philippines even up to the present. These aspects or dimensions are
discussed below.

A. Economic

Since the end of World War II, economic development and progress had been the concern of
all nations. Some, like most Asian nations, were successful in propelling their economic strategies
and goals while to others, these seem to be an elusive dream. The Philippines is one of these nations
awaiting its economic development to reach its fruition and become a reality.
Basically, it is in the agriculture sector that the struggle for long-term economic development in the
Philippines will be overcome and won. Agriculture is the main industry in the country. In fact, a large

7|P age
number of the working population is found in the agricultural sector and contributes substantially to
the gross domestic product. Exports of agricultural products comprise a major source of foreign
exchange.
But at present, the Philippines is one of the developing countries with a very low level of
agricultural productivity which is caused by various factors.
Some of these factors are the small-sized farms, lack of finances for capital, poor technology
or primitive methods of production, economic ignorance, lack of economic incentives, and the wave
of Filipino workers going out of the country. Furthermore, many of the farmers and farmworkers do
not own the land they till. They remain tenants to the landowner, a fact which dampens their
enthusiasm and initiative to produce optimally. In effect, the economic development of the country
is hampered.
Undoubtedly, reforms are needed to promote and intensify agricultural productivity which
contributes significantly to the overall growth and economic development. Foremost of these is
certainly a genuine agrarian reform program. This is the key in propelling the Philippines, an
agricultural country, to its irreversible economic development and success.

B. Socio-cultural

Agrarian reform implies socio-cultural transformation. It could eventually result in

meaningful changes and make a difference in the lives of its beneficiaries. Based on the experiences
of Japan and Taiwan, which unrelentlessly implemented their respective models of agrarian reform,
these positive and favorable socio-cultural changes may be summed up in the following:

1. There will be a gradual shift from dependence to self-subsistent outlook where the farmer-
beneficiaries would put all their energies in the farms resulting in surplus of products and
increase in income;
2. A sound social order in the farming villages will be greatly enhanced and the farmers will
become more aware of the importance and urgency to maintain peace and stability in the
community so that they could enjoy the increased benefits generated from their farms;
3. The farmer-beneficiaries' initiative and active participation in leadership roles will be
enhanced and the monopoly of land ownership by the landlords will be dissolved and farmers
can begin forming associations to stand on equal footing with their former landlords and
participate actively in local and national elections; and

8|P age
 4. The social status of the farmers will improve as agricultural productivity increases their
income which consequently, promote improvements like modern family planning programs
and awareness of the economic alternatives in the urban and industrial sectors.
C. Religious

Agrarian reform can be rooted in the Bible, both in the Old and New Testaments. This is
further discussed in the teachings of the Roman Catholic Church through papal social encyclicals.
The basic foundation of agrarian reform is grounded in scriptural teachings, specifically in
Genesis 1:27-30, that God is the owner of the earth and that He made it for all His children.
All, not just a privileged few, possess the God-given right to use and enjoy the fruits of the
earth for their existence, development, and progress. It is indeed contrary to the will of God if the
land He made for all His children should now be appropriated, controlled, and enjoyed only by a few
(Salgado, 1974: 512). The wish of Christ is that there be no injustice and oppression of His people. He
is the enemy of want, deprivation, and greed. His command had always been “feed the hungry, give
drink to the thirsty” (Mt. 25:31-46). Furthermore, He urges, “you must be perfect, just as your
heavenly Father is perfect” (Mt. 5:48), and “if you wish to be perfect, go and sell what you own and
give the money to the poor, and you will have treasure in heaven, then come follow me” (Mt.19:21).
The Vatican II Decree, “Pastoral on the Church in the Modern World” (Par. 69), likewise
stresses and reaffirms the biblical teachings that man should regard external things that he
legitimately possesses not only for his own but also as common in the sense that they should be able
to benefit not only him but also others. On the other hand, the right to having a share of earthy goods
sufficient for oneself and one's family belongs to everyone.
The Papal Encyclical “On the Development of People”(Par. 23), quoting St. Ambrose, states
that “you are not making a gift of your possessions to the poor person. You are handing over to him
what is his. For what has been given in common for the use of all, you have arrogated to yourself. The
world is given to all, not only to the rich.”

D. Moral

Philosophical teaching also shows the importance of agrarian reform to a country. Human
reason also sees the need for a just and equitable distribution of lands to the people. This is also
rooted in social justice which is a combination of general justice and distributive justice. Based on the
general justice, social justice points to the responsibility of treating the rich and the poor equally. As
a distributive justice, it underlines the duty of the government to distribute proportionately to all
citizens the privileges and burdens in the society.

9|P age
 Agrarian reform is based on social justice as far as equitable distribution of land is concerned.
The equitable distribution of land to landless farmers and farmworkers entails the regulation of the
State in the acquisition, ownership use, enjoyment, and disposition of private properties. Such
regulation will maximize the economic and social function of properties and make it accessible to all.
Consequently, everyone may be able to live a better quality of life with self-respect, decency, security,
and dignity.

E. Legal

Agrarian reform has constitutional mandates. The 1987 Constitution clearly sites these
mandates as:
(Art. II, Sec. 10) - to promote social justice in all phases of national development;
(Art. II, Sec. 21) - to promote comprehensive rural development and agrarian reform;
(Art. XII, Sec. 1) - to promote industrialization and full employment based on sound agricultural
development and agrarian reform;
(Art. XIII, Sec. 1) - to regulate the acquisition, ownership use, and disposition of property and its
increments;
(Art. XIII, Sec. 2) - to afford full protection to labor and promote equal work opportunities; and
(Art. XIII, Sec. 4-10) - to undertake an agrarian reform program as well as housings programs for
homeless citizens.

F. Political

Agrarian reform is a top priority of the government and of almost every Philippine president.
Most often, the national leadership’s political will is measured through its capacity to implement
significant programs, such as the agrarian reform, regardless of those who will be affected—families,
relatives, friends, or foes.
Agrarian reform is ultimately the product of the more deliberate political decisions in solving
the imbalanced ownership of agricultural lands with the privileged few, who benefited from them
through wielding power and influence.

LESSON 5 - IMPLICATIONS OF AGRARIAN REFORM

Below are the implications of an authentic agrarian reform program.

1. Socio-economic

10 | P a g e
 a. Incentive to produce more
b. More employment
c. Higher farm yields
d. Larger income
e. Expanded domestic market
f. Greater industrial production
g. National development and dynamic democracy
h. Heightened quality of life
2. Socio-political
a. Enhanced people's participation
b. People's empowerment
c. Recognition of human dignity
d. More principled and disciplined people
e. More political awareness and involvement
f. Responsive bureaucracy
g. Broad-based democracy
h. National development and dynamic democracy
i. Heightened quality of life
3. Socio-cultural
a. Recognition of human dignity
b. Heightened consciousness and social awareness
c. Enhanced people’s participation
d. More principled and disciplined people
e. Higher education
f. Improved health condition
g. Increased awareness of environmental conservation
h. National development and dynamic democracy
i. Heightened quality of life

It must be noted that the paramount objectives of an authentic agrarian reform program are
“national development, dynamic democracy, and ultimately a “heightened quality of life.”

11 | P a g e
Chapter Summary:

The issue of a genuine agrarian reform program in the Philippines is a centuries-old problem
that is in need of an urgent solution. Advocates of a genuine agrarian reform program wanted their
emancipation from the bondage of the soil that has persisted for a long time. The successful
implementation of a genuine agrarian reform program of the Philippines would improve the lives of
marginalized farmers and farmworkers. The Philippines is an agricultural country. It would have
been propelled to its irreversible economic development and success had an authentic agrarian
reform program been implemented.
Reform is a change in something, a process or an act to achieve improvements in its current
state or quality. Land reform are measures to be undertaken to improve the relationship between the
tillers and the landowner, with regards to the former's rights and privileges in the land they are
nurturing. Agrarian reform pursues a broader improvement, not only on the land ownership, but also
in the agrarian system and processes as a whole. This includes credit measures, product
development, modes of production, trainings, and finances. Agrarian reform programs are either
government initiated or government-backed.

Activity 1 – Expressing my own beliefs

The answer for this activity should have at least a minimum of one page. Follow the following
technicalities: Font face: Cambria; Font Size: 11; Paragraph Alignment: Justified; Line Spacing: 1.5
Lines; Page Size: Letter. The deadline of submission will be announced via Facebook Messenger
Group. Please turn in your work in the official virtual classroom of the course in a PDF manner using
the file format: first letter of your First name plus Surname_Activity1SSC103CHAPTER1FINALS (see
example: JDelaCruz_Activity1SSC103CHAPTER1FINALS).
Direction: Expound your ideas on the following questions:
1. Do you believe that there is really an urgent need for an authentic agrarian reform in the
Philippines? Explain.
2. What do you think is/are the reason/s why land/agrarian reform programs in the country have
been perceived as unsuccessful?

REFERENCE:

 Manapat, Carlos L., et. al. (2010). Economics, Taxation and Agrarian Reform. Quezon City: C
& E Publishing, Inc.

12 | P a g e
 CHAPTER 2 – THE COMPREHENSIVE AGRARIAN REFORM PROGRAM

Learning Objectives:

At the end of this discussion, students should be able:

1. Understand the role and importance of the Comprehensive Agrarian Reform Program (LO1,
LO2);
2. Explain and discuss the objectives and salient features of CARP (LO1, LO2); and
3. Identify and discuss the difference between CARP and CARPER (LO1, LO2, LO3).

LESSON 1 – THE MEANING OF CARP

Immediately after the 1986 People Power revolt, President Cory Aquino expressed her
commitment to renew and expand the existing land reform program of the country. She vowed that
a land reform program should be able to "reflect a true liberation of the Filipino farmer from the
shackles of landlordism and transform him into a truly self-reliant citizen, participating responsibly
in the affairs of the nation.”
On July 22, 1987, President Aquino instituted the Comprehensive Agrarian Reform Program
through the issuance of Proclamation 131. In a more broad sense, the main goal of this program is to
improve the agriculture sector, which plays an important role in the Philippine economy. This will be
achieved by improving the lives of small and landless farmers through poverty alleviation, social
reforms, and justice. Improving the living conditions of these farmers can cause rural development.
Farmers will be encouraged to increase their production. A better yield would then mean an increase
in the aggregate income which will consequently create a multiplier effect on the national economy.
Specifically, the roles of the Comprehensive Agrarian Reform Program can be summarized into two
main points.

1. To serve as a channel for land distribution where landless farmworkers would be resettled;
and
2. To provide for other assistance in line with the needs of farmers such as loan extensions,
supply of agricultural infrastructures, legal assistance, and research and training services.

13 | P a g e
 LESSON 2 – FOUNDATIONS OF THE CARP

The roots of agrarian problems lay in the issues of land, property, and ownership, which have
come to mean many things to many people. In the 1999 Agrarian Reform Manual, two major concepts
pertaining to land, property, and ownership were underscored. These are the biblical and socio-
anthropological concepts that serve as the foundations of the CARP.

1. Biblical concepts

The biblical foundation of CARP comes from the "principle of creation" which says that "land
is God-given, not man-made." Land is basic to man's survival and everyone should benefit from it.
Land is scarce, that is why it is necessary to allocate it fairly and should not be left in the hands of
people. The strong moral dimension of the CARP rests on these biblical principles, which is
elaborated by the following statements:
"Land resources are God's property."
This means that God is the sole creator and absolute owner of all property which includes
land and all natural resources.
"Man is only a caretaker of God-given property."
As God owns the land, the man is entrusted with its management or what is called
stewardship. Every person has the right to use land for survival. This right can be translated to his
right to ownership. However, ownership often predisposes man to greed. For this reason, it has
become the responsibility of the government-through CARP-to ensure that everyone is fairly
considered in the utilization and ownership of properties and lands.
"Ownership has a social responsibility."
As a steward of the land, a man has a duty to manage, cultivate, and make his land productive.
Lands that are controlled by every man should not be abused or misused. "Ownership is universal
but not absolute." This suggests that the individual's right to ownership is relative to the right of
others. One can only use and own land insofar as he does not trample upon the same right of others.

2. Socio-anthropological concept

The value of land and man's right to ownership of property has evolved simultaneously with
the rise of civilizations and social classes. As man develops and advances to more sophisticated and
complex lifestyles, his level of satisfaction and his perception of property, begins to grow with the
exigencies and dictates of society.

14 | P a g e
 In earlier times, property was of little significance to man. Land was communal and there
were no concepts of private tenure, private lands, and private homes. The natives did not fight over
acquisition of possessions and they shared among them all resources that they could find on land.
When civilizations emerged, the natives developed a system of production and trading that
later led to the idea of wealth and other properties. Eventually, there appeared individual property,
state property, and corporate property. Since then, the accumulation of wealth has become the
determining factor of social status.
Advanced societies, particularly those which have transformed into capitalist economies,
paved the way for rapid concentration of property in larger enterprises. Monopolies, cartels, and
multinational corporations left the marginalized sector with little or no opportunity to access capital
resources including land.
Both biblical and anthropological concepts are the underlying principles behind the
implementation of CARP. The CARP stands on the belief that all members of the agricultural labor
force-farmers, farmworkers, and other producers-have the right to own and control a piece of land.

OBJECTIVES OF THE CARP

To realize the government's purpose of reforming the rural and agriculture sector, the CARP
defines its objectives, which are enumerated as follows:

1. To acquire lands and distribute them equitably among landless farmers in a span of ten years;
2. To accommodate all landless farmers as tenant-beneficiaries of the program;
3. To deliver agriculture services other than land distribution to all the beneficiaries of the
program;
4. To provide farmers with legal representation and create an adjudication body for agrarian-
related cases;
5. To assist and encourage landowners to shift their capital to other investments; and
6. To establish the Presidential Agrarian Reform Council (PARC) that would help implement the
program.

LESSON 3 – SALIENT FEATURES OF THE CARP

Coverage
Past land reform programs—from Quezon's Rice Share Tenancy Act to Marcos's presidential
decrees—revolved mainly around resettlement and redistribution of rice and corn lands. The CARP,

15 | P a g e
however, expanded this specific criterion to include all public and private agricultural lands. It is
explicitly stated in Chapter III, Section 4 of R.A. 6657.
"The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of tenurial arrangement
and commodity produced, all public and private agricultural lands, including other lands of the public
domain suitable for agriculture."
The CARP, therefore, covers all lands as long as they are fit for any agricultural activity.
Agricultural activity at the time of the implementation of this program referred not only to the
cultivation and seeding of soil, or growing and harvesting of crops; but also to other farm practices
such as fishery, poultry, and livestock raising. However in 1990, upon the petition of a farming
corporation engaged in the livestock and poultry business the Supreme Court cancelled the inclusion
of livestock, poultry or swine-raising in the CARP coverage. It is because livestock and poultry raising
are not similar to crop or tree farming industry where land is the principal factor for operation.
More concretely, the CARP enumerated in Chapter III, Section 4A these types of lands. They
are defined as:

1. All alienable and disposable lands of the public domain devoted to or suitable for agriculture;
2. All lands of public domain, including forest or mineral lands reclassified to agricultural lands,
after the approval of R.A. 6657 (CARL);
3. All other government-owned lands devoted to or suitable for agriculture; and
4. All private lands devoted to or suitable for agriculture, regardless of the agricultural products
raised or that can be raised thereon.

On the other hand, the CARP does not cover lands that are used for the following purposes:

a. Parks and wildlife (e.g., Ninoy Aquino Parks and Wildlife);

b. Forest reserves and reforestation (e.g., Cordillera);
c. Fish sanctuaries and breeding grounds (e.g., fish sanctuaries in Batangas);
d. Watersheds and mangroves (e.g., mangroves in Davao);
e. National defense reservations (e.g., Fort Magsaysay in Nueva Ecija);
f. School sites including experimental farm stations operated by public or private schools for
educational purposes;
g. Seeds and seedlings research and pilot production centers (e.g., International Rice and
Research Institute or IRRI in Los Baños, Laguna);
h. Religious sites and convents (e.g., Our Lady of Manaoag Church in Pangasinan);

16 | P a g e
 i. Communal burial grounds and cemeteries (e.g., underground cemetery in Nagcarlan,
Laguna);
j. Penal colonies and penal farms actually worked by the inmates (e.g., Iwahig Penal Colony in
Palawan);
k. Government or private research and quarantine centers; and
l. All lands with 18% slope and over (e.g., Banaue Rice Terraces).

The wider coverage of CARP gives more room for both agricultural and industrial economies
to expand. It enables the government to provide more jobs, more production, and more livelihood for
farmers and farmworkers. In turn, there will be more economic activities that will encourage people
to remain in the countryside instead of going to Manila or other urban centers.

Beneficiaries of CARP
Lands acquired by the CARP will be parceled out among farmers who are willing to cultivate
them. They are called the Agrarian Reform Beneficiaries (ARBs). ARBs, together with the landowners,
are the direct beneficiaries of the program. However, to be a qualified ARB, the farmer must meet the
prerequisites mandated by R.A. 6657. Such qualifications are as follows:

1. The farmer must be a Filipino citizen of at least 15 years of age or head of the family;
2. He/she should be landless; and
3. He/she must be willing and able to make the soil productive.

In Chapter VII, Section 22 of R.A..6657, preference will be given to the ARBs in this order:

1. Agricultural lessees and share tenants;

2. Regular farmworkers (those who are employed permanently by an agricultural enterprise or
farm);
3. Seasonal farmworkers (those who are working on farms on a periodic basis);
4. Other farmworkers (those farmworkers who are not classified under Chapter I, Section 3 of
R.A. 6657);
5. Actual tillers or occupants of public lands;
6. Collectives or cooperatives of the above beneficiaries; and
7. Others directly working on the land.

17 | P a g e
 LESSON 4 – LAND DISTRIBUTION PROCESS

Registration of Landowners and Beneficiaries

Registration process serves as the database for identifying the lands to be covered, the
landowners who will have to submit their lands, and the beneficiaries who will be qualified for the
programs.

Land Acquisition
This process involves the identification, valuation, and payment of the land to be acquired by
the government. The DAR, through the Barangay Agrarian Reform Council (BARC), identifies the
lands which will be subjected to CARP. The DAR then publishes its intent to acquire land in local
newspapers, and notifies the landowner of the amount which will be offered to him/her as
compensation for the land.
Chapter VI, Section 17 identifies the factors to be considered for land valuation and just
compensation. They are the following: cost of acquisition, current value, nature and actual use,
income, sworn valuation, tax declaration, assessment, 'farmers and government contributions, non-
payment of taxes, and non-payment of loans: The formula used for computation is:

FMV + AV + DV
TLV =
3
Where:
TLV = Total Land Value;
FMV = Fair Market Value;
AV = Assessed Value (by DAR)
DV = Declared Value (by the landowner)

The modes of payment to the landowners are in the form of cash and government financial
instruments (GFI), shares of stocks in government owned and -controlled corporations (GOCCs), tax
credits or Land Bank of the Philippines (LBP) bonds. This is subject to the choice of the landowner.
In case the landowner voluntarily sells his/her land, he/she will be entitled to additional five percent
cash payment.
Within 15 days from the publication and notice, the landowner is expected to respond to the
DAR whether he/she accepts or rejects this offer. If the landowner accepted it, the LBP will then hand

18 | P a g e
him/her the payment for the value of the land. This transaction is done within 15 days after the
landowner has surrendered the Certificate of the Land Title and other documents required by DAR
and the LBP.
Once the landowner receives the payment, the government effectively owns the land. The
Register of Deeds will issue a Transfer Certificate of Title (TCT) in the name of the Republic of the
Philippines.
However, if the landowner rejected the offer or did not respond within 30 days, the DAR will
conduct a summary administrative proceedings (SAP). This will assess the value for the land in
question. The DAR collects evidence that will be useful for its evaluation from the landowner, LBP,
and other concerned parties. Within thirty days, the DAR should carry out a decision.
Should any party disagrees with the decision, he/she has an option to approach the Special
Agrarian Court to question the determination of land valuation or just compensation.

Land Transfer
This includes the various processes involved in the physical transfer of land ownership to
qualified farmer-beneficiaries or ARBs. As a general rule, only agricultural lands owned by private
entities or government agencies are to be acquired under the CARP.
As stated in Section 23 of RA 6657, the land to be awarded should not be more than three
hectares per ARB. The proof that a parcel of land has been physically distributed or transferred to
them is called the Certificate of Land Ownership Awards (CLOAs).
On the other hand, the beneficiaries are expected to pay the government, through the LBP,
amortization payments equivalent to six percent interest per year.

NON-LAND TRANSFER PROGRAM

Non-land transfer programs are projects that are implemented by the government to
improve the economic conditions of small farmers while anticipating for land distribution. The
Chapter III of R.A. 6657 enumerated the following schemes of transfer.

a. Agricultural leasehold operation

This is a transition contract where tenant-farmers pay the landowners 25% of the average
normal harvest for three years and which adjusts the sharing arrangement until actual land transfer
can be carried out.

b. Production and profit sharing

19 | P a g e
 This is a temporary measure that provides small farmworkers a fair share of the harvest,
produce, and profits raised from lands which are not yet obtained by the CARP.

c. Stock Distribution Option (SDO)

This scheme gives farmers the rights to purchase capital stocks, equities, or shares from
corporate land owners whose lands are not viable for parceling.

LESSON 5 – THE CARP EXTENSION AND REFORMS (CARPER)

The ten-year extension was scheduled to end on June 10, 2008. However, due to strong outcry
from affected and concerned farmer-beneficiaries, farmers' organizations and cause-oriented
groups, the CARPER Bill or R.A. No. 9700 was signed by President Gloria Macapagal-Arroyo on August
7, 2009. This law extends, strengthens, and improves some of the provisions of R.A. 6657.

Salient features of R.A. No. 9700

1. CARP as a continuing program

This means that the agrarian reform program will continue even when all landless farmers
have owned a piece of agricultural land. The DAR is expected to proceed with its delivery of support
services mandated in R.A. 6657.

2. Creation of a joint Congressional Oversight Committee

As stated in Section 26 of the law, the joint Congressional Oversight Committee is composed
of three members of the House of Representatives and three members of the Senate. These members
will monitor and determine the problems in the implementation of CARP and make the necessary
adjustments in its policies.

3. Clear policy against conversion of agricultural lands

One of the mechanisms done by big landowners who wanted to avoid CARP coverage was to
convert their property to non-agricultural uses. To regulate this practice, CARPER stated in Section
22 that "irrigated and irrigable lands, regardless of funding commitment for irrigation, shall not be
subject to conversion notwithstanding its classification.” Furthermore, Section 24 stresses that "any
conversion by any landowner of his/her agricultural land into any non-agricultural use with intent

20 | P a g e
to avoid the application of this act to his/her landholdings and to dispossess his/her bona fide tenant
farmers or the land tilled by them” is also prohibited.

4. Gender-sensitive agrarian reform

Another provision added in the CARPER Bill is the recognition of “the rights of rural women
to own and control land, taking into consideration the substantive equality between men and women
as qualified beneficiaries, to 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.”

5. On land acquisition and distribution

Changes and improvements are made with regards to DAR's policy on land acquisition and
distribution. Among these changes include:

 Php150 billion budget for CARPER implementation (Section 21);

 A new phasing schedule of land acquisition and distribution (LAD) to ensure
completion by June 14, 2014 (Section 16); no more voluntary land transfer (VLT)
after June 30, 2009; and
 A retention limit exemption of local government units (LGUs).
6. On agrarian justice

In line with this are the following adjustments:

 recognition of farmer's legal standing;

 referral of agrarian related cases to DAR;
 no TRO may be issued against DAR when implementing CARP;
 DAR decision is immediately executory; and
 Additional prohibited acts on circumvention of CARP implementation.
7. On support services

This includes:

 improved budget for support services;

 more access to socialized credit, subsidies to new ARBs;
 establishment of more agrarian reform communities (ARCs); and
 expected harvest, purchase orders, and warehouse receipts can be used as collateral.

21 | P a g e
Chapter Summary:

The CARP, also known as Republic Act No. 6657, was signed into law by President Corazon C.
Aquino on June 10, 1988 and became effective on June 15, 1988. This program aims at a genuine
agrarian reform that is completely different from past land reforms. Its framers made it
comprehensive in terms of its coverage, varied in its beneficiaries, and collaborative in its support
services. A genuine agrarian reform program of the country is possible by dismantling land monopoly
by the landlords, distributing freely the farmlands to landless farmers, and consequently, strongly
supported by the concerned government agencies. The CARP did not completely realize its objectives.
Many big landholders refused to include their landholdings in this program. Moreover, there was an
alleged inefficiency in the implementation of CARP on the part of the government. Thus, a law on
CARP Extension and Reforms (CARPER), known as R.A. No. 9700, was signed by Pres. Arroyo to
extend and push on the delivery of agrarian reform. This is also to show that her administration is
serious in bringing R.A. 6657 (CARL) into complete fruition and success.

Activity 1 – Lesson Reflection

The answer for this activity should have at least a minimum of one page. Follow the following
technicalities: Font face: Cambria; Font Size: 11; Paragraph Alignment: Justified; Line Spacing: 1.5
Lines; Page Size: Letter. The deadline of submission will be announced via Facebook Messenger
Group. Please turn in your work in the official virtual classroom of the course in a PDF manner using
the file format: first letter of your First name plus Surname_Activity1SSC103CHAPTER2SEMIFINALS
(see example: JDelaCruz_Activity1SSC103CHAPTER2SEMIFINALS).
Direction: Carefully analyze and the answer the posted question below. Create a comprehensive
discussion based on the question.
Q1. How does CARPER differ from CARP?
Q2. Why is the CARP considered as the centerpiece program of the Aquino Administration?

REFERENCE:

 Manapat, Carlos L., et. al. (2010). Economics, Taxation and Agrarian Reform. Quezon City: C
& E Publishing, Inc.

22 | P a g e