REPUBLIC

ACT
NO. 6657

JUNE 10,1988
AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN
REFORM PROGRAM TO PROMOTE SOCIAL JUSTICE
AND INDUSTRIALIZATION, PROVIDING THE
MECHANISM FOR ITS IMPLEMENTATION, AND FOR
OTHER PURPOSES
 CHAPTER 1
Preliminary Chapter
SECTION 1. Title.
— This Act shall be known as the Comprehensive Agrarian Reform Law of 1988.
SECTION 2. Declaration of Principles and Policies.
— It is the policy of the State to pursue a Comprehensive 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.
To this end, a more equitable distribution and ownership of land, with due regard to the rights of landowners to just
compensation 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 farm workers, 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, having taken 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
incentives for voluntary land-sharing.
 CHAPTER 1
Preliminary Chapter
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 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 farmworkers 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.
 CHAPTER 1
Preliminary Chapter
The State shall be guided by the principles that land has a social function and land ownership has a social
responsibility. Owners of agricultural lands 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.

SECTION 3. Definitions.
— For the purpose of this Act, unless the context indicates otherwise:

(a) Agrarian Reform means redistribution of lands, regardless of crops or fruits produced, to farmers and regular
farmworkers who are landless, irrespective of tenurial arrangement, to include the totality of factors and support services
designed to lift the economic status of the beneficiaries and all other arrangements alternative to the physical
redistribution of lands, such as production or profit-sharing, labor administration, and the distribution of shares of stocks,
which will allow beneficiaries to receive a just share of the fruits of the lands they work.
 CHAPTER 1
Preliminary Chapter
(b) Agriculture, Agricultural Enterprise or Agricultural Activity means the cultivation of the soil, planting of crops,
growing of fruit trees, raising of livestock, poultry or fish, including the harvesting of such farm products, and other farm
activities and practices performed by a farmer in conjunction with such farming operations done by person whether
natural or juridical.
(c) Agricultural Land refers to land devoted to agricultural activity as defined in this Act and not classified as mineral,
forest, residential, commercial or industrial land.
(d) Agrarian Dispute refers to any controversy relating to tenurial arrangements, whether leasehold, tenancy,
stewardship or otherwise, over lands devoted to agriculture, including disputes concerning farmworkers' associations or
representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of such
tenurial arrangements. It includes any controversy relating to compensation of lands acquired under this Act and other
terms and conditions of transfer of ownership from landowners to farmworkers, tenants and other agrarian reform
beneficiaries, whether the disputants stand in the proximate relation of farm operator and beneficiary, landowner and
tenant, or lessor and lessee.
(e) Idle or Abandoned Land refers to any agricultural land not cultivated, tilled or developed to produce any crop nor
devoted to any specific economic purpose continuously for a period of three (3) years immediately prior to the receipt of
notice of acquisition by the government as provided under this Act, but does not include land that has become
permanently or regularly devoted to non-agricultural purposes. It does not include land which has become unproductive
by reason of force majeure or any other fortuitous event, provided that prior to such event, such land was previously used
for agricultural or other economic purpose.
 CHAPTER 1
Preliminary Chapter
(f) Farmer refers to a natural person whose primary livelihood is cultivation of land or the production of agricultural
crops, either by himself, or primarily with the assistance of his immediate farm household, whether the land is owned by
him, or by another person under a leasehold or share tenancy agreement or arrangement with the owner thereof.
(g) Farmworker is a natural person who renders service for value as an employee or laborer in an agricultural enterprise
or farm regardless of whether his compensation is paid on a daily, weekly, monthly or "pakyaw" basis. The term includes an
individual whose work has ceased as a consequence of, or in connection with, a pending agrarian dispute and who has not
obtained a substantially equivalent and regular farm employment.
(h) Regular Farmworker is a natural person who is employed on a permanent basis by an agricultural enterprise or
farm.
(i) Seasonal Farmworker is a natural person who is employed on a recurrent, periodic or intermittent basis by an
agricultural enterprise or farm, whether as a permanent or a non-permanent laborer, such as "dumaan", "sacada", and the
like.
(j) Other Farmworker is a farmworker who does not fall under paragraphs (g), (h) and (i).
(k) Cooperatives shall refer to organizations composed primarily of small agricultural producers, farmers, farmworkers,
or other agrarian reform beneficiaries who voluntarily organize themselves for the purpose of pooling land, human,
technological, financial or other economic resources, and operated on the principle of one member, one vote. A juridical
person may be a member of a cooperative, with the same rights and duties as a natural person.
 chapter 2
Coverage

SECTION 4. Scope.
— The Comprehensive Agrarian Reform Law of 1989 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.

More specifically the following lands are covered by the Comprehensive Agrarian
Reform Program:
(a) 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.

(b) All lands of the public domain in excess of the specific limits as determined by Congress in the preceding paragraph;

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

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

SECTION 5. Schedule of Implementation.

— The distribution of all lands covered by this Act shall be implemented immediately and completed within ten (10) years from the effectivity
thereof.
SECTION 6. Retention Limits.
— Except as otherwise provided in this Act, no person may own or retain, directly or indirectly, any public or private agricultural land, the size of
which shall vary according to factors governing a viable family-size farm, such as commodity produced, terrain, infrastructure, and soil fertility as
determined by the Presidential Agrarian Reform Council (PARC) created hereunder, but in no case shall retention by the landowner exceed five (5)
hectares.
 Three (3) hectares may be awarded to each child of the landowner, subject to the following qualifications: (1) that he is at
least fifteen (15) years of age; and (2) that he is actually tilling the land or directly managing the farm: Provided, That landowners
whose lands have been covered by Presidential Decree No. 27 shall be allowed to keep the areas originally retained by them
thereunder: Provided, further, That original homestead grantees or their direct compulsory heirs who still own the original
homestead at the time of the approval of this Act shall retain the same areas as long as they continue to cultivate said
homestead.

The right to choose the area to be retained, which shall be compact or contiguous, shall pertain to the landowner: Provided,
however, That in case the area selected for retention by the landowner is tenanted, the tenant shall have the option to choose
whether to remain therein or be a beneficiary in the same or another agricultural land with similar or comparable features. In case
the tenant chooses to remain in the retained area, he shall be considered a leaseholder and shall lose his right to be a beneficiary
under this Act. In case the tenant chooses to be a beneficiary in another agricultural land, he loses his right as a leaseholder to
the land retained by the landowner. The tenant must exercise this option within a period of one (1) year from the time the
landowner manifests his choice of the area for retention.

In all cases, the security of tenure of the farmers or farmworkers on the land prior to the approval of this Act shall be
respected.

Upon the effectivity of this Act, any sale, disposition, lease, management, contract or transfer of possession of private lands
executed by the original landowner in violation of 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. Thereafter, all Registers of Deeds shall inform the Department of Agrarian Reform (DAR) within thirty (30) days of any
transaction involving agricultural lands in excess of five (5) hectares.
SECTION 7. Priorities.
— The Department of Agrarian Reform (DAR) in coordination with the Presidential Agrarian Reform
Council (PARC) shall plan and program the acquisition and distribution of all agricultural lands
through a period of ten (10) years from the effectivity of this Act. Lands shall be acquired and
distributed as follows:

Phase One: 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; all lands foreclosed by the
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 within a period of not more than four (4) years;

Phase Two: 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 in excess of fifty (50)
hectares, insofar as the excess hectarage is concerned, to implement principally the rights of farmers
and regular farmworkers, who are the 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 within a period of not more than four (4) years.
Phase Three: All other private agricultural lands commencing with large landholdings and
proceeding to medium and small landholdings under the following schedule:

(a) Landholdings above twenty-four (24) hectares up to fifty (50) hectares, to begin on the fourth
(4th) year from the effectivity of this Act and to be completed within three (3) years; and
(b) Landholdings from the retention limit up to twenty-four (24) hectares, to begin on the sixth (6th)
year from the effectivity of this Act and to be completed within four (4) years; 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 of priority, which shall be provided in the
implementing rules to be prepared by the Presidential Agrarian Reform Council (PARC), taking into
consideration the following; the need to distribute land to the tillers at the earliest practicable time;
the need to enhance agricultural productivity; and the availability of funds and resources to
implement and support the program.
In any case, the PARC, upon recommendation by the Provincial Agrarian Reform Coordinating
Committee (PARCCOM), may declare certain provinces or region as priority land reform areas, in
which the acquisition and distribution of private agricultural lands therein may be implemented ahead
of the above schedules.
In effecting the transfer within these guidelines, priority must be given to lands that are
tenanted.
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 does not own but is actually cultivating to the extent of the difference
between the area of the land he owns and the award ceiling of three (3) hectares.
SECTION 8. Multinational Corporations.
— All lands of the public domain leased, held or possessed by multinational corporations or associations, and other lands owned by the
government or by government-owned or controlled corporations, associations, institutions, or entities, devoted to existing and operational
agri-business or agro-industrial enterprises, operated by multinational corporations and associations, shall be programmed for acquisition
and distribution immediately upon the effectivity of this Act, with the implementation to be completed within three (3) years.
Lands covered by the paragraph immediately preceding, under lease, management, grower or service contracts, and the like,
shall be disposed of as follows:
(a) Lease, management, grower or service contracts covering such lands covering an aggregate area in excess of 1,000 hectares,
leased or held by foreign individuals in excess of 500 hectares are deemed amended to conform with the limits set forth in Section 3 of
Article XII of the Constitution.
(b) Contracts covering areas not in excess of 1,000 hectares in the case of such corporations and associations, and 500 hectares, in
the case of such individuals, shall be allowed to continue under their original terms and conditions but not beyond August 29, 1992, or
their valid termination, whichever comes sooner, after which, such agreements shall continue only when confirmed by the appropriate
government agency. Such contracts shall likewise continue even after the 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.
(c) In no case will such leases and other agreements now being implemented extend beyond August 29, 1992, when all lands subject
hereof shall have been distributed completely to qualified beneficiaries or awardees.
 Such agreements can continue thereafter only under a new contract between the government or
qualified beneficiaries or awardees, on the one hand, and said enterprises, on the other.

Lands leased, held or possessed by multinational corporations, owned by private individuals and
private non-governmental corporations, associations, institutions and entities, citizens of the
Philippines, shall be subject to immediate compulsory acquisition and distribution upon the expiration
of the applicable lease, management, grower or service contract in effect as of August 29, 1987, or
otherwise, upon its valid termination, whichever comes sooner, but not later than after ten (10) years
following the effectivity of 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 workerbeneficiaries. In case it is not
economically feasible and sound to divide the land, then they shall form a workers' cooperative or
association which will deal with the corporation or business association or any other proper party for
the purpose of entering into a lease or growers agreement and for all other legitimate purposes. Until
a new agreement is entered into by and between the workers' cooperative or association and the
corporation or business association or any other proper party, any agreement existing at the time this
Act takes effect between the former and the previous landowner shall be respected by both the
workers' cooperative or association and the corporation, business, association or such other proper
party. In no case shall the implementation or application of this Act justify or result in the reduction of
status or diminution of any benefits received or enjoyed by the worker-beneficiaries, or in which they
may have a vested right, at the time this Act becomes effective,.

The provisions of Section 32 of this Act, with regard to production and income-sharing shall apply
to farms operated by multinational corporations. During the transition period, the new owners shall be
assisted in their efforts to learn modern technology in production. Enterprises which show a willingness
and commitment and good-faith efforts to impart voluntarily such advanced technology will be given
preferential treatment where feasible.

In no case shall a foreign corporation, association, entity or individual enjoy any rights or privileges
better than those enjoyed by a domestic corporation, association, entity or individual.
SECTION 9. Ancestral Lands.
— For purposes of this Act, ancestral lands of each indigenous cultural community shall include, but not be limited to, lands in the actual, continuous and
open possession and occupation of the community and its members: Provided, That the Torrens Systems shall be respected.
The right of these communities to their ancestral lands shall be protected to ensure their economic, social and cultural well-being. In line with the
principles of self-determination and autonomy, the systems of land ownership, land use, and the modes of settling land disputes of all these communities
must be recognized and respected.
Any provision of law to the contrary notwithstanding, the PARC may suspend the implementation of this Act with respect to ancestral lands for the
purpose of identifying and delineating such lands: Provided, That in the autonomous regions, the respective legislatures may enact their own laws on
ancestral domain subject to the provisions of the Constitution and the principles enunciated in this Act and other national laws.

SECTION 10. Exemptions and Exclusions.

— Lands actually, directly and exclusively used and found to be necessary for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding
grounds, watersheds, and mangroves, national defense, school sites and campuses including experimental farm stations operated by public or private
schools for educational purposes, seeds and seedlings research and pilot production centers, 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 the Act.
 SECTION 11. Commercial Farming.

— Commercial farms, which are private agricultural lands devoted to commercial livestock, poultry and swine
raising, and aquaculture including saltbeds, fishponds and prawn ponds, fruit farms, orchards, vegetable and
cut-flower farms, and cacao, coffee and rubber plantations, shall be subject to immediate compulsory
acquisition and distribution after (10) years from the effectivity of the 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 the 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 hereafter manage the said lands for the worker-
beneficiaries. If the DAR determines that the purposes for which this deferment is granted no longer exist,
such areas shall automatically be subject to redistribution. The provisions of Section 32 of the Act, with
regard to production-and incomesharing, shall apply to commercial farms.