Agrarian Law Ungos Book Notes PDF Free

AGRARIAN LAW - UNGOS BOOK NOTES
INTRODUCTION
ETYMOLOGY
∙ Latin word Agra means “a field”
∙ Agrarian – relating to land or to the ownership or division of land
AGRARIAN LAWS – laws that govern and regulate:
∙ Distribution of public agricultural lands, large estates,
∙ Relationship and rights over agricultural lands between
o landowners
o farmers who work on land or agricultural workers
o tenants
o lessees
AGRARIAN REFORM
∙ Current focus of agrarian laws
∙ Aims for redistribution or break up of agricultural lands to transform them
into economic size farms to be owned by farmers themselves
∙ End view is to uplift the socio economic status of farmers
∙ Founded on right of landless farmers and regular farm workers to directly or
collectively own the lands they till or to receive a just share in the fruits
thereof
LAWS ON AGRARIAN REFORM
∙ Comprehensive Agrarian reform Law – basic law
∙ Tenant Emancipation Law
∙ Code of Agrarian Reforms
SOCIAL LEGISLATION
∙ Broad enough to cover labor, agrarian and welfare laws
∙ Emphasis is on the aspect of general public good and social welfare
∙ Laws or statutes enacted pursuant to the social justice clause of the Constitution
CHAPTER I Preliminary Chapter

Section 1. Title. —Comprehensive Agrarian Reform Law of 1988.
AGRARIAN LAW – all laws that govern and regulate rights and relationship
between tenants, agricultural workers, lessees or landowners (tall), over
agricultural lands
HISTORY OF PHILIPPINE AGRARIAN LAWS
∙ Spanish Era
o Civil Code’s Special Provisions for Rural Leases - relationship between
landowners and tenants
∙ American Regime
o Rice Share Tenancy Act - relationship between landlords and tenants on rice
lands
o Sugar Tenancy Act – relationship between landlords and tenants on lands
planted to sugar cane
∙ Commonwealth Period
o CA 53 – testimony of tenant was regarded as prima facie evidence of
terms of tenancy contract that was not reduced in writing in
language known to him
o CA 178 – Amended Rice Share Tenancy
o CA 271 – Amended Sugar Tenancy Act by extending application to
sugar farm workers (initially only landlords and tenants)
o CA 461 – security of tenure to agricultural tenants
o CA 608 – Amended CA 461
∙ After grant of independence
o RA 34 – amended Rice Share Tenancy Act
▪ introduced changes in crop division
o Agricultural Share Tenancy Act
▪ repealed all earlier tenancy laws except Sugar Tenancy Act
o RA2263 – amended the amended Rice Share Tenancy Act
o RA 1440 - expropriation of all tenanted estates
o Agricultural Land Reform Code – Aug 13 1963
▪ abolished share tenancy
▪ instituted the agricultural leasehold system
o RA 6389 – amended the Agricultural Reform Code into Code of Agrarian
Reforms
∙ Marcos Regime
o PD 27 Tenant Emancipation Law – provided for the transfer of
lands primarily devoted to rice and corn to tenants o PD 946 –
created Court of Agrarian Relations
o PD 1038 – strengthened security of tenure of tenants in no rice or corn
agricultural lands
o PD 251, 44, 1039 and 1817 – amended Code of Agrarian Reforms
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∙ Aquino Regime
o EO 228 – Declaring full land ownership in favor of beneficiaries under PD 271
o EO 229 – Providing for mechanics of implementation
o Proclamation 131 – instituted comprehensive reform program
o Comprehensive Agrarian Reform Law of 1988 – June 10 1988
o RA 7881, 7905, 8532, 9700 – amended CARL
MEANING OF AGRARIAN REFORM 2
∙ Physical redistribution of lands and the totality of factors and support
services designed to lift the economic status of beneficiaries and all other
arrangements alternative to the physical redistribution of the lands, such as
o production or profit sharing,
o labor administration, and
o distribution of shares of stock,
∙ Allows them to receive a just share of the fruits of the lands they work
∙ Regardless of crop or fruits produced to farmers and regular farmers who are landless
and irrespective of tenurial arrangement
REASON FOR ALTERNATIVES TO LAND DISTRIBUTION - Confining agrarian
reform to land distribution is not feasible because there is not enough
agricultural land to be distributed to every farmer or regular farm workers
CARL APPLIES ONLY TO AGRICULTURAL LAND – Lands
∙ Devoted to agricultural activities
∙ Arable and suitable for farming
CARL DOES NOT APPLY TO: (CRIM-F)
1. Commercial Land
2. Residential Land
3. Industrial Land
4. Mineral Land
5. Forest Land
NATALIA REALTY DEV V. DAR (townsite reservation not agricultural land)

∙ Landowner: Natalia Realty Inc.
∙ PD 1637 - Proclaimed 20,312 hectares of land as town site
reservation, part of which was the land of Natalia o
Antipolo, Montalban, San Mateo
o Reason: population overspill in the metropolis
∙ Private landowners were allowed to develop properties into
low cost housing subdivisions with reservation ∙ Natalia was
allowed by HLURB to develop land into a subdivision
∙ CARL then took effect 9 years later (June 15 1988)
∙ Natalia sought to cancel DAR’s Notice of Coverage on undeveloped portions of the
subdivision
o Natalia claimed that the land was no longer covered by CARL because
the PD converted the land to a town site reservation and was
therefor no longer agricultural land
∙ HELD: Undeveloped portions of Natalia properties are NOT covered by the
CARL because they are NOT agricultural land. Agricultural land does NOT
include commercial, industrial or residential land.
CONSTITUTIONALITY OF CARP – valid exercise of police power
Section 2. Declaration of Principles and Policies.
It is the policy of the State to pursue a Comprehensive Agrarian Reform
Program (CARP). The welfare of the landless farmers and farmworkers will
receive the highest consideration to promote social justice and to move the
nation toward sound rural development and industrialization, and the
establishment of owner cultivatorship of economic-size farms as the basis of
Philippine agriculture.
The State shall promote industrialization and full employment based on sound
agricultural development and agrarian reform, through industries that make
full and efficient use of human and natural resources, and which are
competitive in both domestic and foreign markets: Provided, That the
conversion of agricultural lands into industrial, commercial or residential
lands shall take into account, tillers' rights and national food security. Further,
the State shall protect Filipino enterprises against unfair foreign competition
and trade practices.
The State recognizes that there is not enough agricultural land to be divided
and distributed to each farmer and regular farmworker so that each one can
own his/her economic-size family farm.
This being the case, a meaningful agrarian reform program to uplift the lives
and economic status of the farmer and his/her children can
1
Emancipation of tenants from the bondage of the soil, transferring to
them the ownership of the land they till and providing the instruments
and mechanism therefor
2
Section 3
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only be achieved through simultaneous industrialization aimed at developing a
self-reliant and independent national economy effectively controlled by
Filipinos.
To this end, the State may, in the interest of national welfare or defense, establish and
operate vital industries.
A more equitable distribution and ownership of land, with due regard to the
rights of landowners to just compensation, retention rights under Section 6 of
Republic Act No. 66573, as amended, and to the ecological needs of the nation,
shall be undertaken to provide farmers and farmworkers with the
opportunity to enhance their dignity and improve the quality of their lives
through greater productivity of agricultural lands.
The agrarian reform program is founded on the right of farmers and regular
farmworkers, who are landless, to own directly or collectively the lands they
till or, in the case of other farmworkers, to receive a just share of the fruits
thereof.
To this end, the State shall encourage and undertake the just distribution of all
agricultural lands, subject to the priorities and retention limits set forth in this
Act, taking into account ecological, developmental, and equity considerations,
and subject to the payment of just compensation.
The State shall respect the right of small landowners, and shall provide incentive for
voluntary land-sharing.
As much as practicable, the implementation of the program shall be
community-based to assure, among others, that the farmers shall have greater
control of farmgate prices, and easier access to credit.
The State shall recognize the right of farmers, farmworkers and landowners, as
well as cooperatives and other independent farmers’ organizations, to
participate in the planning, organization, and management of the program, and
shall provide support to agriculture through appropriate technology and
research, and adequate financial, production, marketing and other support
services.
The State shall 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 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.
The State shall apply the principles of agrarian reform, or stewardship,
whenever applicable, in accordance with law, in the disposition or utilization
of other natural resources, including lands of the public domain, under lease or
concession, suitable to agriculture, subject to prior rights, homestead rights of
small settlers and the rights of indigenous communities to their ancestral
lands.
The State may resettle landless farmers and farm workers in its own
agricultural estates, which shall be distributed to them in the manner
provided by law.
By means of appropriate incentives, the State shall encourage the formation
and maintenance of economic-size family farms to be constituted by
individual beneficiaries and small landowners.
The State shall protect the rights of subsistence fishermen, especially of local
communities, to the preferential use of communal marine and fishing
resources, both inland and offshore. 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 foreign intrusion.
Fishworkers shall receive a just share from their labor in the utilization of
marine and fishing resources.
The State shall be guided by the principles that land has a social function and
land ownership has a social responsibility. Owners of agricultural land have
the obligation to cultivate directly or through labor administration the lands
they own and thereby make the land productive.
The State shall provide incentives to landowners to invest the proceeds of the
agrarian reform program to promote industrialization, employment and
privatization of public sector enterprises. Financial instruments used as
payment for lands shall contain features that shall enhance negotiability and
acceptability in the marketplace.
The State may lease undeveloped lands of the public domain to qualified
entities for the development of capital-intensive farms, and traditional and
pioneering crops especially those for exports subject to the prior rights of the
beneficiaries under this Act.
PRIMARY OBJECTIVE OF AGRARIAN REFORM
∙ Breakup agricultural lands to transform them into economic size farms to be
owned by farmers themselves, to uplift their economic status.
∙ Founded on the right of landless farmers and landless regular farm workers
to directly or collectively own the lands they till or in case of farm workers,
to receive a just share in fruits thereof.
∙ Does not guarantee improvement in lives of the agrarian reform beneficiaries,
but it merely provides for possibility of favorable chance of uplifting
economic status of the agrarian reform beneficiaries
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Comprehensive Agrarian Reform Program
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MEANING OF ECONOMIC FAMILY SIZE FARM - area of farm land that permits
efficient use of labor and capital resources of the farm family and will produce
a sufficient income to provide for (MIR)
∙ Modest standard of living to meet a farm family’s needs for
food, clothing, shelter and education with ∙ Possible
allowance for payment of yearly installments on land and
∙ Reasonable reserves to absorb yearly fluctuations in income
Section 3. Definitions. — For the purpose of this Act, unless the context indicates
otherwise:
Agrarian ∙ redistribution of lands, regardless of crops or fruits
Reform 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
o production or profit-sharing,
o labor administration, and
o distribution of shares of stocks,
∙ which will allow beneficiaries to receive a just share of the
fruits of the lands they work.
Agricult ∙ cultivation of the soil,
ure, ∙ planting of crops,
Agricult ∙ growing of fruit trees,
ural ∙ including the harvesting of such farm products and
Enterpr ∙ other farm activities and practices performed by a farmer in
ise or conjunction with such farming operations done by persons
Agricult whether natural or juridical. (amended)
ural
Activity
Agricult ∙ land devoted to agricultural activity as defined in this Act and

ural ∙ not classified as mineral, forest, residential, commercial or
Land industrial land.
Agrarian ∙ any controversy relating to tenurial arrangements, whether
Dispute 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.
∙ 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.
Idle or ∙ any agricultural land not cultivated, tilled or developed to
Abando produce any crop nor devoted to any specific economic
ned purpose continuously for a period of three (3) years
Land immediately prior to the receipt of notice of acquisition by
the government as provided under this Act,
o does not include land that has become permanently
or regularly devoted to non-agricultural purposes.
o 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.
Farmer ∙ a natural person whose primary livelihood is cultivation of
land or the production of agricultural crops, livestock
and/or fisheries either by himself/herself, or primarily
with the assistance of his/her immediate farm household,
∙ whether the land is owned by him/her, or by another person
under a leasehold or share tenancy agreement or
arrangement with the owner thereof.
Farmwo ∙ natural person who renders service for value as an employee
rker or laborer in an agricultural enterprise or farm
∙ regardless of whether his compensation is paid on a daily,
weekly, monthly or "pakyaw" basis ∙ 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.
Regular ∙ natural person who is employed on a permanent basis by an
Farmwo agricultural enterprise or farm.
rker
Seasonal ∙ natural person who is employed on a recurrent, periodic or
Farmwo intermittent basis by an agricultural enterprise or farm,
rker whether as a permanent or a non-permanent laborer, such
as "dumaan", "sacada", and the like.
Other ∙ farmworker who is not regular or seasonal farmworker
Farmwo
rker
Coopera ∙ organizations composed primarily of small agricultural
tives 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.
∙ juridical person may be a member of a cooperative, with the
same rights and duties as a natural person.
Rural ∙ women who are engaged directly or indirectly in farming
women and/or fishing as their source of livelihood, whether paid
or unpaid, regular or seasonal, or in food preparation,
managing the household, caring for
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the children, and other similar activities.
RAISING OF LIVESTOCK, POULTRY OR FISH NOT EMBRACED IN THE TERM

AGRICULTURE - Lands devoted to raising of livestock, poultry and swine are
exempt from the agrarian reform program because they are industrial land,
not agricultural.
LUZ FARMS V. SEC OF AGRA
∙ Unconstitutional to include lands devoted to raising of livestock, poultry and
swine within agriculture because no land is tilled and no crop is harvested.
∙ Land is not the primary resource in raising of livestock, poultry or swine.
∙ Does not sprout from land and are not fruits of land.
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CHAPTER II Coverage
Section 4. Scope. –
∙ The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of
tenurial arrangement and commodity produced, all public and private
agricultural lands as provided in Proclamation No. 131 and Executive Order
No. 229, including other lands of the public domain suitable for agriculture:
o Provided, That landholdings of landowners with a total area of five
(5) hectares and below shall not be covered for acquisition and
distribution to qualified beneficiaries.
∙ More specifically, the following lands are covered by the CARP:
o All alienable and disposable lands of the public domain devoted to or suitable
for agriculture.
▪ No reclassification of forest or mineral lands to agricultural lands
shall be undertaken after the approval of this Act until
Congress, taking into account ecological, developmental and
equity considerations, shall have determined by law, the
specific limits of the public domain;
o All lands of the public domain in excess of the specific limits as
determined by Congress in the preceding paragraph; o All other
lands owned by the Government devoted to or suitable for
agriculture; and
o All private lands devoted to or suitable for agriculture regardless of
the agricultural products raised or that can be raised thereon.
∙ A comprehensive inventory system in consonance with the national land use
plan shall be instituted by the Department of Agrarian Reform (DAR), in
accordance with the Local Government Code, for the purpose of properly
identifying and classifying farmlands within one (1) year from effectivity of
this Act, without prejudice to the implementation of the land acquisition and
distribution.
LANDS COVERED BY THE AGRARIAN REFORM LAW
∙ All public and private agricultural lands
∙ Other lands of public domain suitable for agriculture
LANDS NOT COVERED BY THE AGRARIAN REFORM LAW
∙ Private lands with total are of 5 hectares and below
o law says landholdings of landowners with a total area of 5 hectares
and below shall not be covered for acquisition and distribution to
qualified beneficiaries
∙ Lands actually, directly and exclusively used for
o parks, wildlife, forest reserves, reforestation, fish sanctuaries
and breeding grounds, watersheds and mangroves o prawn farms
and fishponds (private lands)
∙ Lands actually, directly and exclusively used and found to be necessary for
o National defense
o School sites and campuses
o Experimental farm stations operated for educational purposes
o Seeds and seedling research and pilot production center
o Church sites and convents appurtenant thereto
o Mosque sites and Islamic centers appurtenant thereto
o Communal burial grounds and cemeteries
o Penal colonies and penal farms actually worked by the inmates
o Research and quarantine centers
o All lands with 18% slope and over
▪ except those already developed.
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.
IMPLEMENTATION EXTENDED BY RA 9700 to JUNE 30, 2014
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, o 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: ( o he
is at least fifteen (15) years of age; and (
o 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,
o tenant shall have the option to choose whether to
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▪ remain in retained area

∙ he shall be considered a leaseholder and shall lose his right to be a
beneficiary
▪ be a beneficiary in the same or another agricultural land with similar or
comparable features.
∙ he loses his right as a leaseholder to the land retained by the
landowner.
o The tenant must exercise this option within a period of (1) year from
time the landowner manifests his choice of the area for retention.
∙ In all cases, the security of tenure of the farmers or farmworkers on the land
prior to the approval of this Act shall be respected. ∙ Upon the effectivity of this
Act, any sale, disposition, lease, management, contract or transfer of
possession of private lands executed by the original landowner in violation of
the Act shall be null and void: provided,
∙ However, that those executed prior to this Act shall be valid only when
registered with the Register of Deeds within a period of three (3) months
after the effectivity of this Act.
o 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.
RETENTION RIGHT OF LANDOWNER
∙ Landowner has right to retain not more than 5 hectares of his landholdings
o maximum retention of 5 hectares
∙ Retained area does not have to be personally cultivated by the landowner
o Cultivation can be done indirectly through labor administration
LANDOWNER WHO ALREADY EXERCISED RETENTION RIGHTS UNDER PD
274 CANT EXERCISE RETENTION RIGHTS UNDER CARP ∙ If landowner chooses
to retain 5 hectares under CARL, 7 hectares previously retained under PD 27
shall be immediately placed under CARP.
CAN SPOUSES RETAIN 5 HECTARES EACH UNDER THE AGRARIAN REFORM LAW
∙ Conjugal or Absolute Community – spouses can only retain 5 hectares
∙ Separation of property – spouses can retain 5 hectares each or a total of 10 hectares
LAND OWNER HAS RIGHT TO CHOSE AREA TO BE RETAINED
∙ Land owners choice of area to be retained prevails as long as:
o Chosen area must be compact or contiguous
o Does not exceed retention ceiling of 5 hectares
∙ Landowner must exercise his right of retention within 60 days from receipt of Notice of
Coverage
FAILURE OF LANDOWNER TO EXERCISE RIGHT OF RETENTION - Municipal
Agrarian Reform Officer will designate retained area for landowner if
landowner fails to exercise his right of retention within allotted time
CAN A LANDOWNER EXERCISE RIGHT TO RETENTION OVER THE LAND
WHICH HAS ALREADY BEEN COVERED BY AN EMANCIPATION PATENT OR
CERTIFICATE OF LAND OWNERSHIP AWARD
∙ Emancipation Patent or Certificate of Land Ownership Award to beneficiaries
does not absolutely bar landowner from retaining area covered
∙ If landowner is deprived of right to retention, he may file a petition
for cancellation of EP or CLOA issued to the tenants o EP or CLOA may
be cancelled if land covered is found to be part of landowner’s retained
area
SUPPOSE THE RETENTION AREA CHOSEN BY THE LANDOWNER
IS TENANTED, WHAT HAPPENS TO THE TENANT ∙ Tenant may
choose
o to remain therein or
o be a beneficiary in the same or another agricultural land with similar or
comparable features
∙ Option must be exercised within a period of 1 year from time
landowner manifests choice of area for retention ∙ Law refers to
an Agricultural Tenant, not just any settler on the land
o Substantial evidence of landlord tenant relationship must exist
▪ Landowner has engaged a person to personally cultivate an agricultural
land
▪ Landowner is compensated
∙ in terms of share in produce (share tenancy) or
∙ in terms of price certain or ascertainable in produce or in money or both
(leasehold tenancy)
o mere occupation or cultivation of an agricultural land will not ipso facto make
tiller an agricultural tenant
IF THE TENANT CHOOSES TO REMAIN IN THE RETAINED AREA, HE
BECOMES AN AGRICULTURAL LESSEE ∙ Tenant becomes an Agricultural
Lessee, not a tenant and is therefor no longer qualified to be an agrarian
reform beneficiary ∙ Rights of Agricultural Lessee
o peaceful possession and enjoyment of the land
o manage and work on land in a manner and method of cultivation
and harvest which conform to proven farm practices o mechanize all
or any phase of his farm work
o deal with millers and processors and attend to issuance of
quedans and warehouse receipts for the produce due him
4
DECREEING EMANCIPATION OF TENANTS FROM BONDAGE OF SOIL,
TRANSFERRING TO THEM OWNERSHIP OF LAND THEY TILL AND
PROVIDING INSTRUMENTS AND MECHANISM THEREFOR
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o be afforded a home lot

o be indemnified for the cost and expenses incurred in the cultivation,
planting or harvesting and other expenses incidental to improvement of
his crop in case he surrenders or abandons his landholding for just case
or ejected therefrom o buy the agricultural landholding under
reasonable terms and condition in case the agricultural lessor decides to
sell the same
o redeem the landholding at a reasonable price and consideration in
case agricultural lessor sold same to a third person without his
knowledge
∙ Obligations of Agricultural Lessee
o Cultivate and take care of the farm, growing crops and other
improvements on the landholding as a good father of a family and
perform work in accordance with proven farm practices
o Inform agricultural lessor within a reasonable time of any trespass
committed by 3rd persons upon farm, without prejudice to his direct
action against the trespasser
o Take reasonable care of work animals and farm implements delivered
to him by agricultural lessor and see that they are not used for
purposes other than those intended or used by another without the
knowledge and consent of the agricultural lessor
o Notify agricultural lessor at least 3 days before date of harvesting or threshing
o Pay lease rental to agricultural lessor when due
TERM OF THE LEASE- AGRICULTURAL LEASEHOLD RELATION IS EXTINGUISHED BY
∙ Abandonment or voluntary surrender of land holding by lessee
∙ Absence of successor in event of death or permanent incapacity of lessee
o Surviving Spouse
o Eldest direct descendant by consanguinity
o Next eldest descendant or descendants in order of their age
∙ Death or incapacity of the lessee does not necessarily extinguish the
leasehold relation because the leasehold continues between agricultural
lessor and person who can cultivate the landholding personally
∙ Agricultural leasehold is not terminated or extinguished by mere
expiration of the term or period in a leasehold contract ∙ Not
terminated by transfer of ownership or legal possession of the
landholding
o if agricultural lessor transfers ownership or legal possession of
landholding, transferee becomes agricultural lessor EFFECT IF THE TENANT
CHOOSES TO BE A BENEFICIARY - Tenant loses his right to be a lessee of the
land retained by the landowner
CHILDREN OF THE LANDOWNER ARE ENTITLED TO 3 HECTARES EACH

∙ if landowner owns more than 5 hectares of agricultural land, excess area may
be awarded to children of landowner to extent of 3 hectares for each child
under the following conditions
o child is at least 15 years
o child is actually tilling the land or directly managing the farm
∙ Qualified child who owns less than 5 hectares is still entitled to an award of
his parents landholding provided that his total area including the awarded
area does not exceed the 5 hectares ownership ceiling
o ex. Child already owns 3 hectares of agricultural land, he can still be
awarded 2 hectares from his parents landholding . ∙ Land awarded to
qualified children of landowners cannot be sold, transferred, conveyed
within a period of 10 years except o Hereditary succession
o To the government
o land Bank of the Philippines
o other qualified beneficiaries
∙ Children or spouse can repurchase land from government or land bank within 2 years
from date of transfer
RIGHT OF HOMESTEADERS5 VIS A VIS RIGHT OF TENANTS
∙ Constitution and CARL respect the superiority of rights of homesteaders over rights of
tenants
o Art 13 Sec 6 - The State shall apply the principles of agrarian reform
or stewardship, whenever applicable in accordance with law, in the
disposition or utilization of other natural resources, including lands
of the public domain under lease or concession suitable to
agriculture, subject to prior rights, homestead rights of small settlers,
and the rights of indigenous communities to their ancestral lands.
o CARL Sec 6 - 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 ∙ Agrarian Reform is a remedial measure pursuant to
social justice precept of the Constitution but it was not meant to defeat the
very purpose of the enactment of CA 141/ Homestead Act
o enacted for welfare and protection of the poor
o Gives a needy citizen a piece of land where he may build a modest
house for himself and family and plant what is necessary for
substinence and satisfaction of life’s other needs
∙ Owners or direct compulsory heirs of lands acquired through homestead
grants of Free Patents under CA 141 or the Homestead Act are entitled to
retain the entire area even if it exceeds 5 hectares as long as
o they were cultivating the same at the time of approval of CARL June 15 1988
o continue to cultivate the same
5
a mode of acquiring alienable and disposable lands of the public domain for
agricultural purposes conditioned upon actual cultivation and residence
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SEC. 6-A. Exception to Retention Limits.

∙ Provincial, city and municipal government ,units acquiring private
agricultural lands by expropriation or other modes of acquisition to be
used for actual, direct and exclusive public purposes, such as roads and
bridges, public markets, school sites, resettlement sites, local government
facilities, public parks and barangay plazas or squares, consistent with the
approved local comprehensive land use plan, shall not be subject to the five
(5)-hectare retention limit under this Section and Sections 70 and 73(a) of
Republic Act No. 6657, as amended:
∙ Provided, That lands subject to CARP shall first undergo the land acquisition
and distribution process of the program: ∙ Provided, further, That when these
lands have been subjected to expropriation, the agrarian reform beneficiaries
therein shall be paid just compensation."
EXPROPRIATION OF PRIVATE AGRICULTURAL LANDS BY LGUS - if LGU
expropriates private agricultural land for actual, direct and exclusive public
purposes, DAR should first subject it to agrarian reform coverage
∙ land should first be acquired by the national government through DAR
∙ DAR will pay just compensation to landowner
∙ Thereafter, DAR will distribute the land to agrarian reform beneficiaries
∙ after distribution, LGs will expropriate the land and pay the agrarian reform
beneficiaries just compensation
SEC. 6-B. Review of Limits of Land Size.
∙ Within (6) months from the effectivity of this Act, the DAR shall submit a
comprehensive study on the land size appropriate for each type of crop to
Congress for a possible review of limits of land sizes provided in this Act."
IMPORT OF THE LAW
∙ implied recognition that uniform setting of 5 hectare limit for all agricultural
landholding may not be feasible because of the economic differences for
each agricultural products
∙ lands planted to different crops cannot be treated identically
Section 7. Priorities.
∙ The DAR, in coordination with the Presidential Agrarian Reform Council
(PARC) shall plan and program the final acquisition and distribution of all
remaining unacquired and undistributed agricultural lands from the
effectivity of this Act until June 30, 2014. Lands shall be acquired and
distributed as follows:
∙ Phase One:
o During the (5)-year extension period hereafter all remaining lands
above fifty (50) hectares shall be covered for purposes of agrarian
reform upon the effectivity of this Act.
o All private agricultural lands of landowners with aggregate
landholdings in excess of fifty (50) hectares which have already been
subjected to a notice of coverage issued on or before December 10,
2008;
o rice and corn lands under Presidential Decree No. 27; all idle or
abandoned lands; all private lands voluntarily offered by the owners
for agrarian reform:
o Provided, That with respect to voluntary land transfer, only those
submitted by June 30, 2009 shall be allowed o Provided, further, That
after June 30, 2009, the modes of acquisition shall be limited to
voluntary offer to sell and compulsory acquisition:
o Provided, furthermore, That all previously acquired lands wherein
valuation is subject to challenge by landowners shall be completed
and finally resolved pursuant to Section 17 of Republic Act No. 6657,
as amended:
o Provided, finally, as mandated by the Constitution, Republic Act No.
6657, as amended, and Republic Act No. 3844,as amended, only
farmers (tenants or lessees) and regular farmworkers actually tilling
the lands, as certified under oath by the Barangay Agrarian Reform
Council (BARC) and attested under oath by the landowners, are the
qualified beneficiaries.
o The intended beneficiary shall state under oath before the judge of
the city or municipal court that he/she is willing to work on the land
to make it productive and to assume the obligation of paying the
amortization for the compensation of the land and the land taxes
thereon; all lands foreclosed by government financial institutions; all
lands acquired by the Presidential Commission on Good Government
(PCGG); and all other lands owned by the government devoted to or
suitable for agriculture, which shall be acquired and distributed
immediately upon the effectivity of this Act, with the implementation
to be completed by June 30, 2012;
∙ Phase Two:
o (a) Lands twenty-four (24) hectares up to fifty (50) hectares shall
likewise be covered for purposes of agrarian reform upon the
effectivity of this Act. All alienable and disposable public agricultural
lands; all arable public agricultural lands under agro-forest, pasture
and agricultural leases already cultivated and planted to crops in
accordance with Section 6, Article XIII of the Constitution; all public
agricultural lands which are to be opened for new development and
resettlement: and all private agricultural lands of landowners with
aggregate landholdings above twenty-four (24) hectares up to fifty
(50) hectares which have already been subjected to a notice of
coverage issued on or before December 1O, 2008, to implement
principally the rights of farmers and regular farmworkers, who are
landless, to own directly or collectively the lands they till, which shall
be distributed immediately upon the effectivity of this Act, with the
implementation to be completed by June 30, 2012; and
o All remaining private agricultural lands of landowners with aggregate
landholdings in excess of twenty-four (24) hectares, regardless as to
whether these have been subjected to notices of coverage or not, with
the implementation to begin on July 1, 2012 and to be completed by
June 30, 2013;
∙ Phase Three: All other private agricultural lands commencing with large
landholdings and proceeding to medium and small landholdings under the
following schedule:
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o (a) Lands of landowners with aggregate landholdings above ten (10)

hectares up to twenty- four (24)hectares, insofar as the excess
hectarage above ten (10) hectares is concerned, to begin on July
1,2012 and to be completed by June 30, 2013; and
o (b) Lands of landowners with aggregate landholdings from the
retention limit up to ten (10) hectares, to begin on July 1, 2013 and
to be completed by June 30, 2014; to implement principally the right
of farmers and regular farmworkers who are landless, to own
directly or collectively the lands they till.
∙ The schedule of acquisition and redistribution of all agricultural lands
covered by this program shall be made in accordance with the above order
o f priority, which shall be provided in the implementing rules to be
prepared by the PARC, taking into consideration the following: the
landholdings wherein the farmers are organized and understand ,the
meaning and obligations of farmland ownership; the distribution of lands
to the tillers at the earliest practicable time; the enhancement of
agricultural productivity; and the availability of funds and resources to
implement and support the program: Provided, That the PARC shall design
and conduct seminars, symposia, information campaigns, and other similar
programs for farmers who are not organized or not covered by any
landholdings. Completion by these farmers of the aforementioned
seminars, symposia, and other similar programs shall be encouraged in the
implementation of this Act particularly the provisions of this Section.
∙ Land acquisition and distribution shall be completed by June 30, 2014 on a
province-by- province basis. In any case, the PARC or the PARC Executive
Committee (PARC EXCOM), upon recommendation by the Provincial
Agrarian Reform Coordinating Committee (PARCCOM), may declare certain
provinces as priority land reform areas, in which case the acquisition and
distribution of private agricultural lands therein under advanced phases
may be implemented ahead of the above schedules on the condition that
prior phases in these provinces have been completed: Provided, That
notwithstanding the above schedules, phase three (b) shall not be
implemented in a particular province until at least ninety percent (90%) of
the provincial balance of that particular province as of January 1, 2009
under Phase One, Phase Two (a), Phase Two (b),,and Phase Three (a),
excluding lands under the jurisdiction of the Department of Environment
and Natural Resources (DENR), have been successfully completed.
∙ The PARC shall establish guidelines to implement the above priorities and
distribution scheme, including the determination of who are qualified
beneficiaries: Provided, That an owner-tiller may be a beneficiary of the
land he/she does not own but is actually cultivating to the extent of the
difference between the area of the land he/she owns and the award ceiling
of three (3) hectares: Provided, further, That collective ownership by the
farmer beneficiaries shall be subject to Section 25 of Republic Act No. 6657,
as amended: Provided, furthermore, That rural women shall be given the
opportunity t o participate in the development planning and
implementation of this Act: Provided, finally, That in no case should the
agrarian reform beneficiaries' sex, economic, religious, social, cultural and
political attributes adversely affect the distribution of lands."
ACQUISITION AND DISTRIBUTION SCHEME FOR ALL REMAINING
AGRICULTURAL LANDS DURING 5 YEAR EXTENSION PERIOD UP TO JUNE 30
2014
∙ Order of Priority
o Lands with area of more than 50 hectares to be complete by June 30 2012
▪ those which already have been subjected to a Notice of Coverage on or
before Dec 10 2008
▪ rice and corn lands
▪ idle or abandoned lands
∙ any agricultural land not cultivated, tilled or developed to
produce any crop not devoted to any specific economic
purpose continuously for a period of 3 years immediately
prior to receipt of
notice of acquisition by government
o does not include land that has permanently or regularly devoted to non
agricultural
purposes
o does not include land that has becom unproductive due to force majeure or
any other
fortuitous event provided that prior to such event, land was used for
agricultural or other
economic purpose
▪ private lands voluntarily offered by owners for agrarian reform
▪ lands foreclosed by government financial institutions
▪ lands acquired by Presidential Commission on Good Government
▪ all other lands owned by government devoted to or suitable for agriculture
o Lands with an area of 24 hectares up to 50 hectares to be complete by June 30
2013
▪ all alienable and disposable public agricultural lands
▪ all arable public agricultural lands under agroforest, pasture and
agricultural leases already cultivated and planted to crops in
accordance in Sec 6 Art 13 of the Consti
▪ all public agricultural lands which are to be opened for new development
and resettlement
▪ all private agricultural lands which have already been subjected
to a notice of coverage issued on or before Dec 10 2008
▪ all remaining private agricultural lands regardless as to whether
they have been subjected to notices of coverage
o Lands with an area of more than 10 hectares up to 24 hectares to be completed
by June 30 2013
o Lands from retention limit up to 10 hectares to be complete by June 30 2013
∙ Farmer (tenants or lessees) and regular farmworkers actually tilling the
landsare considered to be qualified beneficiaries only if o certified
under oath by the Barangay Agrarian Reform Council and
o attested under oath by landowners
o Intended beneficiary shall state under oath before judge of city of
municipality court that he is willing to work on the land to make it
productive and to assume obligation of paying amortization for
compensation of land and land taxes thereon
Section 8. Multinational Corporations.
∙ All lands of the public domain leased, held or possessed by multinational corporations
or associations, and other lands owned by
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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:
o 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.
o Contracts covering areas not in excess of 1,000 hectares in the case of
such corporations and associations, and 500 hectares, in the case of
such individuals, shall be allowed to continue under their original
terms and conditions but not beyond August 29, 1992, or their valid
termination, whichever comes sooner, after which, such agreements
shall continue only when confirmed by the appropriate government
agency. Such contracts shall likewise continue even after the lands
has been transferred to beneficiaries or awardees thereof, which
transfer shall be immediately commenced and implemented and
completed within the period of three (3) years mentioned in the first
paragraph hereof.
o In no case will such leases and other agreements now being
implemented extend beyond August 29, 1992, when all lands subject
hereof shall have been distributed completely to qualified
beneficiaries or awardees.
∙ Such agreements can continue thereafter only under a new contract between
the government or qualified beneficiaries or awardees, on the one hand,
and said enterprises, on the other.
∙ Lands leased, held or possessed by multinational corporations, owned by
private individuals and private non-governmental corporations,
associations, institutions and entities, citizens of the Philippines, shall be
subject to immediate compulsory acquisition and distribution upon the
expiration of the applicable lease, management, grower or service contract
in effect as of August 29, 1987, or otherwise, upon its valid termination,
whichever comes sooner, but not later than after ten (10) years following
the effectivity of the Act. However during the said period of effectivity, the
government shall take steps to acquire these lands for immediate
distribution thereafter.
∙ In general, lands shall be distributed directly to the individual worker-beneficiaries.
∙ 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.n no case
shall the implementation or application of this Act justify or result in the
reduction of status or diminution of any benefits received or enjoyed by the
worker-beneficiaries, or in which they may have a vested right, at the time
this Act becomes effective.
∙ The provisions of Section 32 of this Act, with regard to production and
income-sharing shall apply to farms operated by multinational
corporations.
∙ During the transition period, the new owners shall be assisted in their efforts
to learn modern technology in production. Enterprises which show a
willingness and commitment and good-faith efforts to impart voluntarily
such advanced technology will be given preferential treatment where
feasible.
∙ In no case shall a foreign corporation, association, entity or individual enjoy
any rights or privileges better than those enjoyed by a domestic
corporation, association, entity or individual.
AGRICULTURAL LANDS LEASED, HELD OR POSSESSED BY MULTINATIONAL
CORPORATIONS ARE COVERED BY THE CARL ACQUISITION AND
DISTRIBUTION
∙ Land shall be distributed directly to individual worker beneficiaries
∙ If not economically feasible and sound to divide the land, individual worker
beneficiaries shall form a workers cooperative or association which will deal
with the corporation by way of lease growers agreement and other legitimate
purposes
Section 9. Ancestral Lands.
∙ For purposes of this Act, ancestral lands of each indigenous cultural
community shall include, but not be limited to, lands in the actual,
continuous and open possession and occupation of the community and its
members: provided, that the Torrens Systems shall be respected.
∙ The right of these communities to their ancestral lands shall be protected to
ensure their economic, social and cultural well-being.n line with the
principles of self-determination and autonomy, the systems of land
ownership, land use, and the modes of settling land disputes of all these
communities must be recognized and respected.
∙ Any provision of law to the contrary notwithstanding, the PARC may suspend
the implementation of this Act with respect to ancestral lands for the
purpose of identifying and delineating such lands: provided, that in the
autonomous regions, the respective legislatures may enact their own laws
on ancestral domain subject to the provisions of the Constitution and the
principles enunciated in this Act and other national laws.
ANCESTRAL LAND DEFINED
∙ Lands of public domain that have been in open, continuous, exclusive and
notorious occupation and cultivation by members of the National Cultural
Communities by themselves or through their ancestors, under a bona fide
claim of acquisition of ownership according to their customs and traditions
for a period of at least 30 years before date of approval of PD 410
∙ Lands occupied, possessed and utilized by individuals, families and clans who
are members of indigenous cultural communities or indigenous peoples
since time immemorial, by themselves or through their predecessors in
interest, under claims of individual or traditional group ownership,
continuously to the present except when interrupted by war, force majeure
or displacement by force, deceit, stealth or as a consequence of
government projects and other voluntary dealings, entered into by
government and private individuals/corporations, including by not limited
to residential lots, rice terraces or paddies, private forests, swidden farms
and
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tree lots
ANCESTRAL LANDS EXEMPTED FROM THE AGRARIAN REFORM LAW
∙ CARL recognizes and respect systems of land ownership, land use and modes
of settling land disputes of all indigenous cultural communities or
indigenous people in line with self determination and autonomy
∙ Autonomous region – respective legislatures may enact own laws on ancestral domains
subject to
o Constitution
o principles in CARL and
o other national laws
Section 10. Exemptions and Exclusions.

∙ Lands actually, directly and exclusively used for parks, wildlife, forest
reserves, reforestation, fish sanctuaries and breeding grounds, watersheds
and mangroves shall be exempt from the coverage of this Act.
∙ Private lands actually, directly and exclusively used for prawn farms and
fishponds shall be exempt from the coverage of this Act: Provided,
o That said prawn farms and fishponds have not been distributed and
Certificate of Land Ownership Award (CLOA) issued to agrarian
reform beneficiaries under the Comprehensive Agrarian Reform
Program.
o In cases where the fishponds or prawn farms have been subjected to
the Comprehensive Agrarian Reform Law, by voluntary offer to sell,
or commercial farms deferment or notices of compulsory acquisition,
a simple and absolute majority of the actual regular workers or
tenants must consent to the exemption within one (1) year from the
effectivity of this Act. When the workers or tenants do not agree to
this exemption, the fishponds or prawn farms shall be distributed
collectively to the worker-beneficiaries or tenants who shall form a
cooperative or association to manage the same.
o In cases where the fishponds or prawn farms have not been subjected
to the Comprehensive Agrarian Reform Law, the consent of the farm
workers shall no longer be necessary, however, the provision of
Section 32-A hereof on incentives shall apply."
∙ Lands actually, directly and exclusively used and found to be necessary for
national defense, school sites and campuses, including experimental farm
stations operated by public or private schools for educational purposes,
seeds and seedling research and pilot production center, church sites and
convents appurtenant thereto, mosque sites and Islamic centers
appurtenant thereto, communal burial grounds and cemeteries, penal
colonies and penal farms actually worked by the inmates, government and
private
research and quarantine centers and all lands with eighteen percent (18%)
slope and over, except those already developed, shall be exempt from the
coverage of this Act.
LAND CLASSIFICATION IN THE TAX DECLARATION IS NOT CONCLUSIVE
∙ tax declarations are not the sole basis of land classification
∙ even if tax declaration classifies land as agricultural, the tax declaration is still refutable
REPUBLIC V. CA 2000
∙ Landowners Green City Estate and Development Court: 112 hectares in Rizal
o tax declaration: Agricultural
∙ DAR subject the land to CARP
∙ Landowners filed an application for exemption from agrarian reform
o Non agricultural because it is within the residential and forest
conservation zones of the town plan/zoning ordinance ∙ DAR denied
application based on tax declaration
∙ HELD DAR was wrong in denying the application for exemption by
mere fact that the tax declaration classified the land as agricultural
∙ Tax declarations are not the sole basis for the classification of land
∙ DAR AO asks for other documents to be submitted when applying for exemption from
CARP
LANDS CLASSIFIED AS NON AGRICULTURAL PRIOR TO EFFECTIVITY OF CARL ARE NOT
COVERED
∙ Land already classified for residential, commercial or industrial use by
HLRUB prior to CARL are not subject to agrarian Reform ∙ Lands converted
prior to June 15 1988
∙ DAR is bound by such conversions
LANDS WITH AT LEAST 18% SCOPE ARE EXEMPTED FROM COVERAGE OF AGRARIAN
REFORM
∙ reason is to prevent adverse effects on lowlands and streams due to soil erosions
∙ considered permanent forests or forest reserves, regardless of condition of
vegetative cover, occupancy or use of any kind 🡪 not alienable or
disposable
∙ if land with at least 18% slope was previously classified as alienable or
disposable but not yet titled 🡪 reverted to category of public forest
∙ if land has been covered by an approved public land application or occupied
openly, continuously, adversely and publicly for a period of not less than 30
years as effectivity of Forestry Reform Code 🡪 remains as alienable or
disposable on condition that land is kept in vegetative state sufficient to
prevent erosion and adverse effects on lowlands and streams
SCHOOL SITES AND CAMPUSES
∙ Exempted if lands are
o actually, directly and exclusively used and
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o found necessary by the SCHOOL for school sites and campuses

∙ DAR has no right to substitute judgment of discretion for the determination of the
necessity of the school
CMU V. DARAB
∙ Landowner: Central Mindanao University
o CMU – agricultural institution
o 3000 hectares of land
∙ Livelihood program: leased 4 to 5 hectares each to faculty and employees in groups of 5s
o lowland rice project
∙ Faculty and Employees filed a complaint before DAR , Asking DAR to declare
them as tenants under CARL, so that they could become agrarian reform
beneficiaries. DAR did not agree.
∙ DAR then segregated 400 hectares of suitable, compact and contiguous
portions of CMU land and subjected it to agrarian reform coverage for
distribution to qualified beneficiaries on the ground that it was not directly,
actually and exclusively used for school site.
∙ HELD: DAR WAS INCORRECT IN SEGREGATING THE 400 HECTARES OF CMU LAND.
∙ CMU is a school established to promote agriculture and industry, the need for
a vast track of land for future expansion is obvious. ∙ The determination of
when and what lands are found to be necessary for use the CMU, the school is
in the best postion to resolve and answer the question and pass upon the
problem of its needs in relation to its policies.
SECRETARY OF AGRARIAN REFORM HAS JURISDICTION TO EXEMPT A PROPERTY FROM
AGRARIAN REFORM COVERAGEs
Sec. 11. Commercial Farming.
∙ Commercial farms, which are private agricultural lands devoted to saltbeds,
fruit farms, orchards, vegetable and cut-flower farms, and cacao, coffee and
rubber plantations, shall be subject to immediate compulsory acquisition
and distribution after ten (10) years from the effectivity of this Act.
∙ In the case of new farms, the ten-year period shall begin from the first year of
commercial production and operation, as determined by the DAR.
∙ During the ten-year period, the Government shall initiate steps necessary to
acquire these lands, upon payment of just compensation for the land and
the improvements thereon, preferably in favor of organized cooperatives or
associations which shall thereafter manage the said lands for the
workers-beneficiaries.
COMMERCIAL FARMS ARE LANDS DEVOTED TO
∙ Saltbeds
∙ Fruit farms
∙ Orchards
∙ Vegetable and cut flower farms
∙ Cacao, coffee, and rubber plantations
IMPLEMENTATION OF AGRARIAN REFORM LAW DEFERRED ON
COMMERCIAL FARMS - Compulsory acquisition and distribution of
commercial farms has been deferred for 10 years
∙ from effectivity of CARL ( June 1988) - for farms already existing when law took effect
∙ from 1st year of commercial production and operation - for new farms
MODE OF ACQUISITION OF COMMERCIAL FARMS
∙ Voluntary offer to sell VOS
∙ Compulsory acquisition CA
∙ Direct payment scheme DPS
MANNER OF DISTRIBUTION OF COMMERCIAL FARMS- individually or collectively
∙ Individual Beneficiaries
o 3 hectares each or minimum of 1 hectare each if land is not sufficient to
accommodate them
o Order of priority in distribution
▪ Agricultural lessees and share tenants
▪ Regular farm workers
▪ Seasonal farm workers
▪ Other farm workers
▪ actual tillers or occupants of public lands
▪ collectives or cooperatives of above beneficiaries
▪ others directly working on the land
∙ Collective Beneficiaries – if not economically feasible and sound to divide the land
o Beneficiaries will be obliged for form a workers cooperative or association
∙ Agrarian reform beneficiaries may recommend that infrastructure facilities
and improvements necessary and beneficial to operation of the farm be
subject to acquisition, to be determined by DAR.
o Includes buildings, roads, machinery, receptacles, instruments or implements
permanently attached to the land
QUALIFICATIONS OF COMMERCIAL FARM BENEFICIARIES- Agrarian
reform beneficiaries for acquired commercial farms ∙ 18 years old at
time of filing of application as beneficiary
∙ Willingness, aptitude and ability to cultivate and make land productive
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∙ Must have been employed in commercial farm between June

15 1988 or upon expiration of deferment ∙ Farm workers
who have worked the longest on the land continuously will
be given priority
WHO ARE DISQUALIFIED TO BECOME COMMERCIAL FARM BENEFICIARIES
∙ Farm workers who have retired from service, whether optional or compulsory
∙ Farm workers who have resigned from their employment with the farm
∙ Farm workers who have been dismissed for cause
∙ Farm workers, lessees, or tenants who waive or refuse to be a beneficiary
∙ Farm workers, lessees or tenants who have committed a violation of agrarian reform
laws and regulations
FREEDOM OF BENEFICIARIES TO CHOOSE THE TYPE OF AGRIBUSINESS
∙ Choose the type of agribusiness venture arrangement that will
maintain the economic viability of the farm ∙ To market their
products or enter into marketing arrangements
∙ To avail of services or assistance of individuals, associations or non
governmental organizations in negotiating for the most advantageous
agribusiness venture arrangement, enterprise development and capability
building
TYPES OF AGRIBUSINESS VENTURE ARRANGEMENTS WHICH COMMERCIAL
FARM BENEFICIARIES OR COOPERATIVES MAY ENTER INTO (DAR AO 09
1988)
∙ Joint Venture Arrangement
o Company is organized and co-owned by an investor and agrarian
reform beneficiaries through their cooperative or association
o Investor may provide management and marketing skills, technology
infrastructure and capital
o Agrarian reform beneficiaries contribute through labor,
usufructuary, rights to land and capital infusion ∙ Lease
Arrangement
o Agrarian reform beneficiaries through their cooperatives or
association enter into a contract of lease with the landowner or
investor
o Lessee controls farm operations within an agreed period of time
not exceeding 10 years, extendible by agreement ∙ Contract
Growing/Growership Arrangement
o Agrarian reform beneficiaries or cooperative produce certain crops
for an investor or agribusiness firm which buys the produce at pre
arranged terms
∙ Management Contract
o Agrarian reform beneficiaries or cooperative or association hire the
services of landowner or investor to manage and operate the farm in
exchange for fixed wages or commission
∙ Build- Operate- Transfer Scheme
o Project proponent undertakes the financing and construction of a
given infrastructure facility and operation and maintenance thereof
for an agreed period of time not exceeding 25 years subject to
extension
RIGHT OF RETENTION OVER COMMERCIAL FARMS
∙ Owners of commercial farms, individual or corporate, are entitled to retention rights
under Sec 6 of CARL
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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.
POWER OF DAR TO FIX LEASE RENTALS - Tenant may choose to remain in
portion retained by landowner, in which case he will no longer be a tenant but
a lessee (Sec. 6). To protect economic status of farmer, DAR can determine and
fix the lease rental, ∙ For lands devoted to rice and other crops
o 25% of average normal harvest after deducting amount used for
seeds and cost of harvest or threshing o if no normal harvests🡪
estimated normal harvest during 3 agricultural years immediately
preceding the date the leasehold was established
∙ For sugar cane lands
o 24% f average normal harvest less value of cost of seeds/cane points,
harvesting, loading, hauling and or trucking fee and cost of
processing
∙ For coconut lands
o 25% of average normal harvest for a specific area for preceding 3 calendar years
less value of production costs
Section 13. Production-Sharing Plan.
∙ Any enterprise adopting the scheme provided for in Section 32 or operating
under a production venture, lease, management contract or other similar
arrangement and any farm covered by Sections 8 and 11 hereof is hereby
mandated to execute within ninety (90) days from the effectivity of this
Act, a production-sharing plan, under guidelines prescribed by the
appropriate government agency.
∙ Nothing herein shall be construed to sanction the diminution of any benefits
such as salaries, bonuses, leaves and working conditions granted to the
employee-beneficiaries under existing laws, agreements, and voluntary
practice by the enterprise, nor shall the enterprise and its
employee-beneficiaries be prevented from entering into any agreement
with terms more favorable to the latter.
APPLICABILITY OF THE LAW Obligations to a production sharing plan applies only to
∙ Farms operating under a production venture, lease,
management contract or other similar arrangement ∙ Farms
leased or operated by multinational corporations
∙ Commercial farms
o Those devoted to salt beds, fruit farms, orchards, vegetable and cut flower farms,
cacao, coffee or rubber plantations
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CHAPTER IV Registration
Section 14. Registration of Landowners. — Within one hundred eighty (180)
days from the effectivity of this Act, all persons, natural or juridical, including
government entities, that own or claim to own agricultural lands, whether in
their names or in the name of others, except those who have already
registered pursuant to Executive Order No. 229, who shall be entitled to such
incentives as may be provided for the PARC, shall file a sworn statement in the
proper assessor's office in the form to be prescribed by the DAR, stating the
following information:
∙ the description and area of the property;
∙ the average gross income from the property for at least three (3) years;
∙ the names of all tenants and farmworkers therein;
∙ the crops planted in the property and the area covered by each crop as of June 1, 1987;
∙ the terms of mortgages, lease, and management contracts subsisting as of June 1, 1987,
and
∙ the latest declared market value of the land as determined by the city or provincial
assessor.
PURPOSE OF SWORN STATEMENT - Help DAR identify the lands and their
owners for effective implementation of agrarian reform program
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:
∙ names and members of their immediate farm household;
∙ owners or administrators of the lands they work on and the length of tenurial
relationship;
∙ location and area of the land they work;
∙ crops planted; and
∙ 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.
PURPOSE OF REGISTRATION OF AGRICULTURAL LESSEES, TENANTS AND
FARM WORKERS –Develop a databank of potential and qualified beneficiaries
for effective implementation of the agrarian reform program
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CHAPTER V Land Acquisition

Section 16. Procedure for Acquisition and Distribution of Private Lands.— For
purposes of acquisition of private lands, the following procedures shall be
followed:
∙ 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.
∙ 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.
∙ 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.
∙ 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.
∙ 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.
∙ Any party who disagrees with the decision may bring the matter to the court
of proper jurisdiction for final determination of just compensation.
COMPULSORY ACQUISITION OF AGRICULTURAL LANDS PROCESS
∙ Identification by DAR of land, landowner and beneficiary
∙ Notice by DAR to landowner about compulsory acquisition and price offer by
o personal notice or by registered mail and
o posting of notice in a conspicuous place in barangay hall and municipal hall
where land is located
∙ Reply by landowner about his acceptance or refection of offered price
o if landowner accepts – Land Bank will pay the landowner within 30
days from execution and delivery of Deed of Transfer o if landowner
rejects offer – DAR will determine just compensation thru summary
proceedings
o if landowner disagrees with DAR decision – regular courts of
justice for final determination of just compensation ∙ Taking of
immediate possession of land by DAR
o if landowner receives corresponding payment or
o landowner does not respond to notice of acquisition
∙ request by DAR to Register of Deeds to issue Transfer Certificate of Title to Republic of
Philippines
∙ Distribution of land to qualified beneficiaries
TWO NOTICES TO THE LANDOWNER ARE REQUIRED FOR VALIDITY OF
IMPLEMENTATION
∙ Notice of Coverage
o pursuant to DAR AO 12 1989
o in compliance with administrative due process
∙ Notice of Acquisition
o pursuant to Sec 16 of CARL
LAND ACQUISITION PROCEDURE SHOULD BE STRICTLY CONSTRUED
∙ Reason: Land acquisition under agrarian reform law is an extraordinary method of
expropriation
∙ Failure of DAR or any of its agencies to comply with proper procedure for
expropriation is a violation of constitutional due process and in effect
arbitrary, capricious, whimsical and tainted with grave abuse of discretion
o ex. No notice of coverage issued
WHEN TITLE OR OWNERSHIP OF THE LAND IS TRANSFERRED TO THE STATE
∙ Only upon full payment of just compensation
∙ Title and ownership remains with landowner until final
determination of just compensation and fully payment ∙ Mere fact
that DAR deposited offered price with Land Bank does not
warrant cancellation of owner’s title
OPENING OF TRUST ACCOUNT DOES NOT CONSTITUTE PAYMENT - Law
requires just compensation to be paid in cash and Land Bank bonds, not trust
accounts.
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CHAPTER VI Compensation
Section 17. Determination of Just Compensation. —In determining just
compensation, the cost of acquisition of the land, the value of the standing
crop, the current: value of like properties, its nature, actual use and income,
the sworn valuation by the owner, the tax declarations, the assessment made
by government assessors, and seventy percent (70%) of the zonal valuation of
the Bureau of Internal Revenue (BIR), translated into a basic formula by the
DAR shall be considered, subject to the final decision of the proper court. The
social and economic benefits contributed by the farmers and the farmworkers
and by the Government t o the property as well as the nonpayment of taxes or
loans secured from any government financing institution on the said land shall
be considered as additional factors to determine its valuation."
CONCEPT OF JUST COMPENSATION
∙ Defined as the full and fair equivalent of the property taken form its owner by the
expropriator
∙ Measure is not takers gain, but the owners loss
∙ Equivalent to be rendered for the property to be taken shall be real, substantial, full and
ample.
∙ Correct determination of amount to be paid to the landowner and prompt payment
o payment within a reasonable time from taking
o immediate deposit and release of provisional compensation
o full payment of finally adjudged just compensation
o without prompt payment, compensation is not just because
landowner is made to suffer consequence of being immediately
deprived on land while being made to wait before receiving amount
necessary to cope with his loss o ex. of not prompt payment
▪ reimbursement is conditioned on Land Bank’s approval and
release of the amount is made to depend upon compliance
with documentary requirements
▪ partial payment of just compensation
FACTORS USED IN VALUATION OF LANDS
∙ Capital Net Income CNI
o based on land use and productivity
∙ Comparable Sales CS
o 70% of BIR zonal value
∙ Market Value MV
o based on tax declaration
FORMULAS
When all factors CNI x 0.6 + CS x 0.30 + MV x 0.10 = Land Value
are present
When CNI factor is CS x 0.90 + MV x 0.10 = Land Value
not presernt
When CS factor is CNI x 0.90 + MV x 0.10 = Land Value
not present
Formula when CS MV x 2 = Land Value
and CNI are not
present
RECKONING OF VALUATION
∙ General Rule🡪 Basis for just compensation is the value of property at time it
was taken from owner and appropriated to the government
o if government takes possession of land before institution of
expropriation proceedings, value shall be fixed as of time of taking of
possession
▪ not the time of filing of the complaint
o Time of taking
▪ stage when title is transferred to government or beneficiaries AND
o the time when agricultural land voluntarily offered by landowner was
approved by PARC for agrarian reform coverage through stock
distribution scheme
∙ However, if there is undue delay in payment 🡪 value of property should be
determined at time of full payment of just compensation o Lubrica v.
Land Bank
▪ Lubrica was deprived of property in 1972 but as of 2006, Lubrica was still
not justly compensated
▪ inequitable to determine just compensation based on time of
taking considering the failure to determine just compensation
for a considerable length of time
▪ just compensation should be full and fail equivalent of the
property taken from its owner by the expropriator, the
equivalent being real, substantial, full and ample.
PROCEDURE FOR DETERMINATION OF JUST COMPENSATION
∙ Land Bank determines value of lands
∙ DAR makes an offer to landowner based on the Land Bank determination
∙ If landowner rejects
o DAR conducts summary administrative proceedings to determine
compensation for land by requiring landowner, Land Bank and other
interested parties to submit evidence for just compensation
∙ Party who disagrees with decision of adjudicator may bring the matter to
RTC designated as Special Agrarian Court for final determination of just
compensation
ROLE OF DARAB
∙ DARAB or Provincial Agrarian Reform Adjudicators PARAD can conduct
summary administrative proceeding for preliminary determination of just
compensation in order to determine whether land valuation computations
of Land Bank are in accordance
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with rules or administrative orders.

∙ Preliminary proceedings of land valuation for purpose of determination of
just compensation for acquisition shall be conducted by o PARAD –
initial land valuation of Land Bank is less than 10M
o Regional Agrarian Reform Adjudicators – initial land valuation of Land Bank is
50M
o DARAB – initial land valuation of Land Bank is above 50M
∙ On event of non availability, inhibition, or disqualification of designated
PARAD 🡪 RARAD concerned may conduct preliminary proceedings of land
valuation notwithstanding that jurisdictional amount is less than 10M
∙ On account of non-availability, inhibition or disqualification of the RARAD
concerned, DARAB may conduct the preliminary proceedings of land
valuation or designate the same to an Adjusticator form among the PARADs
in the region.
VALUATION SET BY DAR NOT CONCLUSIVE
∙ Valuation set by Land Bank is not conclusive 🡪 Landowner can contest in
proper court, the RTC designated as Special Agrarian Court
∙ Sec 6 Rule 19 of 2006 DARAB Rules of Procedure. Filing of Original Action
with the Special Agrarian Court for Final Determination. o The party
who disagrees with the decision of the Board/Adjudicator may contest
the same by filing an original action with the Special Agrarian Court
(SAC) having jurisdiction over the subject property within fifteen (15)
days from his receipt of the Board/Adjudicator’s decision.
o Immediately upon filing with the SAC, the party shall file a Notice of
Filing of Original Action with the Board/Adjudicator, together with a
certified true copy of the petition filed with the SAC.
o Failure to file a Notice of Filing of Original Action or to submit a
certified true copy of the petition shall render the decision of the
Board/Adjudicator final and executory.
o Upon receipt of the Notice of Filing of Original Action or certified true
copy of the petition filed with the SAC, no writ of execution shall be
issued by the Board/Adjudicator.
COURTS CANNOT DISREGARD FORMULA - Factors for determination of just
compensation, which the DAR converted into a formula are mandatory and
not mere guidelines which the RTC may disregard
CONSENT OF BENEFICIARY NOT NECESSARY IN
DETERMINING JUST COMPENSATION OF LAND OWNER ∙
Under Sec 18 of CARL, the only parties in valuation of land
o land owner
o DAR
o Land Bank
∙ law does not mention participation of farmer beneficiary
∙ Land Bank cannot refuse to pay valuation set by PARAD simply because
consent of farmer beneficiary was not obtained in fixing just compensation
Section 18. Valuation and Mode of Compensation. — The LBP shall

compensate the landowner in such amounts as may be agreed upon by the
landowner and the DAR and the LBP, in accordance with the criteria provided
for in Sections 16 and 17, and other pertinent provisions hereof, or as may be
finally determined by the court, as the just compensation for the land.
The compensation shall be paid on one of the following modes, at the option of the
landowner:
∙ Cash payment, under the following terms and conditions;
(a) For lands above fifty (50) hectares, financial instruments negotiable at any
insofar as the excess hectarage is time.
concerned. — Thirty percent (30%) cash, the
(b) For lands above twenty-four (24) balance to be paid in government
hectares and up to fifty (50) hectares. financial instruments negotiable at any
— Twenty-five percent (25%) cash, the time.
balance to be paid in government
(c) For lands twenty-four (24) hectares and below. — Thirty-five percent (35%)
cash, the balance to be paid in government financial instruments negotiable at any
time.
∙ 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;
∙ Tax credits which can be used against any tax liability;
∙ LBP bonds, which shall have the following features:
o 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;
o 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:
▪ 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;
▪ Acquisition of shares of stock of government-owned or
-controlled corporations or shares of stocks owned by the
government in private corporations;
▪ Substitution for surety or bail bonds for the provisional release of accused persons, or
performance bonds;
▪ 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;
▪ 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;
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▪ Payment for tuition fees of the immediate family of the original

bondholder in government universities, colleges, trade schools,
and other institutions;
▪ Payment for fees of the immediate family of the original bondholder in
government hospitals; and
▪ 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. MODE OF
PAYMENT
∙ Cash and Financial instruments of the government
o lands above 50 hectares
▪ 25% cash
▪ 75% government financial instruments
o lands above 24 hectares
▪ 30% cash
o lands above 24 hectares and below
▪ 35% cash
∙ Shares of stocks in government owned or controlled corporations, preferred
shares of land bank, physical assets or other qualified investments
∙ Tax credits which can be used against tax liabilities
∙ Land bank bonds which shall mature every year until the 10th year
LANDOWNER CANNOT INSIST IN CASH PAYMENT ONLY
∙ Landowner cannot insist in cash payment only because it is not sanctioned by the CARL
∙ law says just compensation shall be paid partly in cash and remainder in
terms of bonds, government financial instruments, shares of stocks in
GOCC, tax credits or Land Bank bonds
∙ Association of Small Landowners vs. Sec of Agrarian reform - rationalized
reason why it cannot be cash payment only o not ordinary
expropriation where only a specific property of relatively limited area is
sought to be taken. it is a revolutionary kind of expropriation
o the smaller the land, the bigger the payment of money because the
small landowner will be neding it more than big landowners who can
afford bigger balance in bonds and other things of value
o cash and the other things of value equivalent to the amount of just compensation
FEATURES OF LAND BANK BONDS
∙ 10% of face value of bonds shall mature every year from date of issuance until 10th year
∙ bonds are transferable and negotiable
∙ bonds can be used for any of the following
o acquisition of land or other real properties of 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
o acquisition of land shares of government owned or controlled
corporations or shares of sticks owned by government in private
corporations
o bail bonds for provisional release of accused persons or performance bonds
o security for loans with government financial institution
▪ provided that proceeds of the loans shall be invested in an economic
enterprise
o payment for various taxes and fees to government
o payment for tuition fees of immediate family of original bond holder
in government universities, colleges, trade schools and other
institutions
o payment for fees of immediate family of original bond holder in government
hospitals
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.
DOCUMENTARY REQUIREMENTS FOR LANDOWNERS WHO
VOLUNTARILY OFFER THEIR AGRICULTURAL LANDS FOR SALE ∙
Written offer
∙ Title or proof of ownership if untitled
∙ Tax declaration
∙ Approved survey plan
FAILURE TO SUBMIT DOCUMENTARY REQUIREMENTS – land will be
subjected to compulsory acquisition 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: ∙ 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.
∙ The terms and conditions of such transfer shall not be less favorable to the transferee
than those of the government's standing offer
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to purchase from the landowner and to resell to the beneficiaries, if such

offers have been made and are fully known to both parties. ∙ The voluntary
agreement shall include sanctions for non-compliance by either party and
shall be duly recorded and its implementation monitored by the DAR.
VOLUNTARY LAND TRANSFER NO LONGER ALLOWED
∙ Sec 7 of CARL as amended by RA 9700 allowed voluntary land transfer up to June 30
2009 only
∙ After June 30 2009, the modes of acquisition are limited only to
o voluntary offer to sell and
o compulsory acquisition
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.
MODE OF PAYMENT IN VOLUNTARY LAND TRANSFERS - unlike compulsory
acquisition, farmer beneficiary pays agreed price of land directly to owner
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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:
o agricultural lessees and share tenants;
o regular farmworkers;
o seasonal farmworkers;
o other farmworkers;
o actual tillers or occupants of public lands;
o collectives or cooperatives of the above beneficiaries; and
o 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.
WHO ARE ELIGIBLE TO BECOME AGRARIAN REFORM BENEFICIARIES – Must
be a landless resident of the same barangay, or same municipality
LANDLESS RESIDENT – Farmer or tiller who owns less than 3 hectares of land
∙ agricultural lessees and share tenants
∙ regular farmworkers
∙ seasonal farm workers
∙ other farm workers
∙ actual tillers or occupants of public lands
∙ collectives or cooperatives of above beneficiaries
∙ others directly working on the land
QUALIFICATIONS OF AN AGRARIAN REFORM BENEFICIARY –
Farmer (whether tenant, lessee or worker) must be ∙ Filipino
citizen
∙ Resident of barangay or municipality where landholding is located
∙ At least 15 years old at time of identification, screening and selection
∙ Willing, able and equipped with aptitude to cultivate and make land productive
SPECIAL QUALIFICATIONS FOR FARM WORKERS IN COMMERCIAL FARMS
PLANTATIONS - if they were already employed as of June 15, 1988 in the
landholding covered by the comprehensive agrarian reform law
MANAGERIAL FARM WORKERS NOT QUALIFIED TO BECOME BENEFICIARIES
∙ farm workers holding managerial or supervisory positions as of June 15 1988
are not qualified to become agrarian reform beneficiaries
∙ however, farm workers promoted to managerial or supervisory position after
they were identified, screened and selected will remain to be qualified
beneficiaries
WHO ARE DISQUALIFIED TO BECOME AGRARIAN REFORM
BENEFICIARIES- The following tenants, lessees or farm workers ∙
Those who do not meet the basic qualifications
∙ Those who have waived their right to become an agrarian reform beneficiary
in exchange for compensation, provided that waiver has not been
questioned in proper government entity
∙ Those who have not paid an aggregate of 3 annual amortizations
∙ Those who have failed to exercise right of redemption/repurchase within 2
years resulting in foreclosure of mortgage by Land Bank of the Philippines
of a previously awarded land
∙ Those who refused to pay 3 annual amortizations for land acquired through
voluntary land transfer or direct payment scheme, resulting in
repossession by landowner
∙ Those who have been dismissed for cause
∙ Those who have obtained substantially equivalent employment
o i.e., any employment or profession form which applicant farmer
derives income equivalent to income of a regular farm worker at time
of identification, screening, and selection of beneficiary
∙ those who have retired or voluntarily resigned from employment
∙ those who have misused the land or diverted the financial support services extended by
the government
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∙ those who have misrepresented material facts in basic qualifications

∙ those who have sold, disposed, or abandoned the lands awarded to them by the
government
∙ those who have converted agricultural lands to non
agricultural use without prior approval from DAR ∙ those
who have been finally adjudged guilty of forcible entry or
unlawful detainer over the property ∙ those who have
violated agrarian reform laws and regulations
SEC. 22-A. Order of Priority. - A landholding of a landowner shall be
distributed first to qualified beneficiaries under Section 22, subparagraphs (a)
and (b) of that same landholding up to a maximum of three (3) hectares each.
Only when these beneficiaries have all received three (3) hectares each, shall
the remaining portion of the landholding, if any, be distributed to other
beneficiaries under Section 22, subparagraphs (c), (d), (e), (f), and (g)."
ORDER OF DISTRIBUTION
∙ Children of landowner enjoy first preference in distribution of
landholding. Each child is entitled to 3 hectares if o 15
years old
o actually tilling the land or directly managing the farm
∙ After the children, 3 hectares each is given to:
o Agricultural lessees and share tenants
o Regular farm workers
∙ remaining portion
o seasonal farm workers
o other farm workers
o actual tillers or occupants of public lands
o collectives or cooperatives of above beneficiaries
o others directly working on the land
Section 23. Distribution Limit. — No qualified beneficiary may own more than three (3)
hectares of agricultural land.
MAXIMUM AREA THAT CAN BE OWNED BY OR AWARDED TO BENEFICIARIES IS 3
HECTARES
∙ therefor is a tenant or farm worker already owns 2 hectares, he can still be awarded 1
hectare
∙ if particular landholding is not enough to meet then 3 hectare award ceiling
for each agricultural lessee or tenant, area to be distributed to them will be
based on actual size of tillage by each lessee or tenant
∙ if landholding is more than enough to accommodate 3 hectare limit for each
agricultural lessee or tenant, excess will be distributed to agrarian reform
beneficiaries in the following order of priority
o seasonal farm workers
o other farm workers
o actual tillers or occupants of public lands
o collectives or cooperatives of above beneficiaries
∙ if not economically feasible and sound to divide the excess to seasonal or
other farm workers, following criteria for priorization shall be observed
o willingness, aptitude, ability to cultivate and make land productive
o physical capacity
o length of service
∙ if seasonal or other farm workers equally meet the foregoing criteria, priority
shall be given to those who have continuously worked on the subject
landholding.
o other farm workers who cannot be accommodated will be put in wait
list of potential beneficiaries in other landholdings ∙ if beneficiaries opt for
collective ownership, such farmers cooperative, total area must coincide with
total number of members or co owners multiplied by 3 hectare limit
FACTORS TO BE CONSIDERED IN DETERMINING THE SIZE OF LAND TO BE AWARDED
∙ type of crop
∙ type of soil
∙ weather patterns
∙ other pertinent factors critical for success of beneficiaries
Section 24. Award to Beneficiaries. —

∙ The rights and responsibilities of the beneficiaries shall commence from their
receipt of a duly registered emancipation patent or certificate of land
ownership award and their actual physical possession of the awarded land.
Such award shall be completed in not more than one hundred eighty (180)
days from the date of registration of the title in the name of the Republic of
the Philippines: Provided, That the emancipation patents, the certificates of
land ownership award, and other titles issued under any agrarian reform
program shall be indefeasible and imprescriptible after one (1) year from
its registration with the Office of the Registry of Deeds, subject to the
conditions, limitations and qualifications of this Act, the property
registration decree, and other pertinent laws. The emancipation patents or
the certificates of land ownership award being titles brought under the
operation of the torrens system, are conferred with the same
indefeasibility and security afforded to all titles under the said system, as
provided for by Presidential Decree No. 1529, as amended by Republic Act
No. 6732.
∙ It is the ministerial duty of the Registry of Deeds to register the title of the
land in the name of the Republic of the Philippines, after the Land Bank of
the Philippines (LBP) has certified that the necessary deposit in the name
of the landowner constituting full payment in cash or in bond with due
notice to the landowner and the registration of the certificate of land
ownership award issued to the beneficiaries, and to cancel previous titles
pertaining thereto.
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∙ Identified and qualified agrarian reform beneficiaries, based on Section 22 of

Republic Act No. 6657, as, amended, shall have usufructuary rights over the
awarded land as soon as the DAR takes possession of such land, and such
right shall not be diminished even pending the awarding of the
emancipation patent or the certificate of land ownership award.
∙ All cases involving the cancellation of registered emancipation patents,
certificates of land ownership award, and other titles issued under any
agrarian reform program are within the exclusive and original jurisdiction
of the Secretary of the DAR."
TRANSFER OF OWNERSHIP TO THE BENEFICIARIES NOT AUTOMATIC
∙ Compulsory acquisition does not mean automatic transfer of ownership of land
∙ title and ownership over land can be transferred to beneficiaries only upon full payment
of just compensation to land owner.
WHEN DOES DAR ISSUE CERTIFICATE OF LAND OWNERSHIP AWARD
∙ DAR will issue CLOA only upon full payment of amortization by farmer beneficiary
∙ CLOA becomes basis for issuance in his name of original or transfer certificate of title
CLOA IS INDEFEASIBLE
∙ Titles brought under operation of Torrens system
∙ same indefeasibility and security
∙ CLOAs and other titles issued under agrarian reform program become
indefeasible and imprescriptible after 1 year from registration with Office
of Registry of Deeds
o subject to conditions, limitations and qualifications under CARL, PRD and other
laws
CANCELLATION OF CLOAS - all cases for cancellation of CLOAs and other titles
issued under agrarian reform program – exclusive and original jurisdiction of
Sec of DAR
GROUNDS FOR CANCELLATION OF CLOAS
∙ Abandonment of land
∙ Neglect or misuse of land
∙ Failure to pay 3 annual amortizations
∙ Misuse or diversion of financial and support services
∙ Sale, transfer or conveyance of right to use the land
∙ Illegal conversion of land
RIGHTS AND OBLIGTIONS OF BENEFICIARIES COMMENCE from receipt of
duly registered CLOA and actual physical possession of awarded land
∙ pending CLOA issuance, the identified and qualified agrarian reform
beneficiaries have usufructuary rights over awarded land which DAR has
taken possession
OBLIGATIONS OF AGRARIAN REFORM BENEFICIARIES
∙ Exercise due diligence in the use, cultivation and
maintenance of land, including improvements thereon ∙ Pay
land bank 30 annual amortizations with 6% interest per
anum
o amortization will start 1 year from date of registration of CLOA
o however if actual occupancy of land takes place after CLOA
registration, 1 year period shall be reckoned from constructive
occupation
Section 25. Award Ceilings for Beneficiaries.
∙ Beneficiaries shall be awarded an area not exceeding three (3) hectares,
which may cover a contiguous tract of land or several parcels of land
cumulated up to the prescribed award limits. The determination of the size
of the land for distribution shall consider crop type, ,soil type, weather
patterns and other pertinent variables or factors which are deemed critical
for the success of the beneficiaries.
∙ For purposes of this Act, a landless beneficiary is one who owns less than
three (3) hectares of agricultural land. ∙ Whenever appropriate, the DAR shall
encourage the agrarian reform beneficiaries to form or join farmers'
cooperatives for purposes of affiliating with existing cooperative banks in
their respective provinces or localities, as well as forming blocs of agrarian
reform beneficiaries, corporations, and partnerships and joining other
farmers' collective organizations, including irrigators' associations: Provided,
That the agrarian reform beneficiaries shall be assured of corresponding
shares in the corporation, seats in the board of directors, and an equitable
share in the profit.
∙ In general, the land awarded to a farmer- beneficiary should be in the form of
an individual title, covering one (1)contiguous tract or several parcels of
land cumulated up to a maximum of three (3) hectares.
∙ The beneficiaries may opt for collective ownership, such as co-workers or
farmers cooperative or some other form of collective organization and for
the issuance of collective ownership titles: Provided, That the total area that
may be awarded shall not exceed the total number of co-owners or
members of the cooperative or collective organization multiplied by the
award limit above prescribed, except in meritorious cases as determined
by the PARC.
∙ The conditions for the issuance of collective titles are as follows:
o The current farm management system of the land covered by CARP
will not be appropriate for individual farming of farm parcels;
o The farm labor system is specialized, where the farmworkers are
organized by functions and not by specific parcels such as spraying,
weeding, packing and other similar functions;
o The potential beneficiaries are currently not farming individual parcels hut
collectively work on large contiguous areas;
Zep Rivera 24
and
o The farm consists of multiple crops being farmed in an integrated
manner or includes non- crop production areas that are necessary
for the viability of farm operations, such as packing plants, storage
areas, dikes, and other similar facilities that cannot be subdivided or
assigned to individual farmers.
∙ For idle and abandoned lands or underdeveloped agricultural lands to be
covered by CARP, collective ownership shall be allowed only if the
beneficiaries opt for it and there is a clear development plan that would
require collective farming or integrated farm operations exhibiting the
conditions described above. Otherwise, the land awarded to a
farmer-beneficiary should be in the form of a n individual title, covering
one (1) contiguous tract or several parcels of land cumulated up to a
maximum of three (3) hectares.
∙ In case of collective ownership, title to the property shall be issued in the
name of the co- owners or the cooperative or collective organization as the
case may be. If the certificates of land ownership award are given to
cooperatives then the names of the beneficiaries must also be listed in the
same certificate of land ownership award.
∙ With regard to existing collective certificates of land ownership award, the
DAR should immediately undertake the parcelization of said certificates of
land ownership award, particularly those that do not exhibit the conditions
for collective ownership outlined above. The DAR shall conduct a review
and redocumentation of all the collective certificates of land ownership
award. The DAR shall prepare a prioritized list of certificates of land
ownership award to be parcelized. The parcelization shall commence
immediately upon approval of this Act and shall not exceed a period of
three (3) years. Only those existing certificates of land ownership award
that are collectively farmed or are operated in an integrated manner shall
remain as collective."
INDIVIDUAL TITLES FOR EVERY BENEFICIARY
∙ General Rule: Land should be awarded to individual farmer beneficiary and
covered by an individual title ∙ However, if beneficiaries opt for collective
ownership, collective ownership title may be issued in name of co- owners or
collective organization
o names of beneficiaries should be listed in same certificate of land ownership
award
CONDITIONS FOR ISSUANCE OF COLLECTIVE TITLES
∙ Farm management system of land covered is not appropriate for individual farming
∙ farm labor is specialized
o i.e., where the farmworkers are organized by functions and not by
specific parcels such as spraying, weeding, packing and other similar
functions
∙ beneficiaries are currently not farming individual parcels but collectively
work on large contiguous areas ∙ Farm consists of multiple crops being farmed
in an integrated manner or includes no crop production areas necessary for
viability of farm operations
o ex. packing plants, storage areas, dikes and other similar facilities that
cannot be subdivided or assigned to individual farmers
TITLES MUST INDICATE THAT IT IS AN EP OR CLOA
∙ Emancipation Patent
∙ Certificate of Land Ownership Award
∙ applies to both title of land awarded and any subsequent transfer title
Section 26. Payment by Beneficiaries.

∙ Lands awarded pursuant to this Act shall be paid for by the beneficiaries to
the LBP in 30 amortizations at 6% (interest per annum. o Annual
amortization shall start (1) year from the date of the certificate of land
ownership award registration. o However, if the occupancy took place
after the certificate of land ownership award registration, the
amortization shall start (1) year from actual occupancy.
o The payments for the first (3) years after award shall be at reduced
amounts as established by the PARC: ▪ Provided, That the first (5)
annual payments may not be more than (5%) of the value of the
annual gross production as established by the DAR.
▪ Should the scheduled annual payments after the fifth (5th) year
exceed ten percent (10%) of the annual gross production and
the failure to produce accordingly is not due to the
beneficiary's fault, the LBP shall reduce the interest rate
and/or reduce the principal obligation to make the repayment
affordable.
∙ The LBP shall have a lien by way of mortgage on the land awarded to the
beneficiary; and this mortgage may be foreclosed by the LBP for
non-payment of an aggregate of three (3) annual amortizations. The LBP
shall advise the DAR of such proceedings and the latter shall subsequently
award the forfeited landholding to other qualified beneficiaries. A
beneficiary whose land, as provided herein, has been foreclosed shall
thereafter be permanently disqualified from becoming a beneficiary under
this Act."
SCHEDULE OF PAYMENT
∙ Cost of awarded land is payable to Land Bank by beneficiaries in 30
annual amortizations with 6% interest per annum ∙ payment starts 1
year from
o date of registration of CLOA or
o date of actual occupancy
▪ if occupancy took place after registration of CLOA
BASIS OF AMORTIZATION
∙ maximum amortization is 5% of annual gross production as established by DAR
∙ After 5th year, interest rate and/or principal obligation may be
reduced by Land Bank to make repayment affordable o if due to
failure of production, scheduled annual payments exceed 10% of
annual gross production
Zep Rivera 25
o failure to produce is not due to beneficiaries fault

EFFECT OFF FAILURE TO PAY 3 ANNUAL AMORTIZATIONS
∙ Land Bank can forfeit landholding and award it to other qualified beneficiaries
∙ beneficiary whose land has been foreclosed or forfeited will be permanently disqualified
from becoming a beneficiary .
Zep Rivera 26

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AGRARIAN LAW - UNGOS BOOK NOTES

CHAPTER I Preliminary Chapter

NATALIA REALTY DEV V. DAR (townsite reservation not agricultural land)

Agricult ∙ land devoted to agricultural activity as defined in this Act and

RAISING OF LIVESTOCK, POULTRY OR FISH NOT EMBRACED IN THE TERM

Section 5. Schedule of Implementation. — The distribution of all lands covered

Section 6. Retention Limits.

▪ remain in retained area

o be afforded a home lot

landholding, transferee becomes agricultural lessor EFFECT IF THE TENANT

CHOOSES TO BE A BENEFICIARY - Tenant loses his right to be a lessee of the

land retained by the landowner

CHILDREN OF THE LANDOWNER ARE ENTITLED TO 3 HECTARES EACH

SEC. 6-A. Exception to Retention Limits.

o (a) Lands of landowners with aggregate landholdings above ten (10)

the government or by government-owned or controlled corporations,

Section 10. Exemptions and Exclusions.

o found necessary by the SCHOOL for school sites and campuses

∙ Must have been employed in commercial farm between June

CHAPTER III Improvement of Tenurial and Labor Relations

Section 15. Registration of Beneficiaries. — The DAR in coordination with the

CHAPTER V Land Acquisition

with rules or administrative orders.

Section 18. Valuation and Mode of Compensation. — The LBP shall

▪ Payment for tuition fees of the immediate family of the original

to purchase from the landowner and to resell to the beneficiaries, if such

Section 21. Payment of Compensation by Beneficiaries Under Voluntary Land Transfer.

CHAPTER VII Land Redistribution

∙ those who have misrepresented material facts in basic qualifications

Section 24. Award to Beneficiaries. —

∙ Identified and qualified agrarian reform beneficiaries, based on Section 22 of

Section 26. Payment by Beneficiaries.

o failure to produce is not due to beneficiaries fault

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CHAPTER I Preliminary Chapter

CHAPTER III Improvement of Tenurial and Labor Relations

CHAPTER V Land Acquisition

CHAPTER VII  Land Redistribution