CARP

SECTION 1:

AGRARIAN LAW – all laws that govern and regulate rights and relationship between tenants, agricultural
workers, lessees or landowners (tall), over agricultural lands

MEANING OF AGRARIAN REFORM 1

 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

1 Section 3

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 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

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 Reform

 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 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. Agriculture, Agricultural Enterprise or Agricultural Activity

 cultivation of the soil,  planting of crops,  growing of fruit trees,  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 persons whether natural or juridical. (amended) Agricultural Land

 land devoted to agricultural activity as defined in this Act and  not classified as mineral, forest,
residential, commercial or industrial land. Agrarian Dispute

 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.  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 Abandoned Land

 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, 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.

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  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

272 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.

2 DECREEING EMANCIPATION OF TENANTS FROM BONDAGE OF SOIL,

TRANSFERRING TO THEM OWNERSHIP OF LAND THEY TILL AND PROVIDING

INSTRUMENTS AND MECHANISM THEREFOR

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

 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 HOMESTEADERS 3 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
3 a mode of acquiring alienable and disposable lands of the public domain for

agricultural purposes conditioned upon actual cultivation and residence

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

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

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 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, 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 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 line with the principles of self-determination and autonomy, the systems
of land ownership, land use, and the

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 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  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

 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

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

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

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 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, insofar as the excess hectarage is
concerned.

— Twenty-five percent (25%) cash, the balance to be paid in government financial instruments
negotiable at any time. (b) For lands above twenty-four (24) hectares and up to fifty (50) hectares.
— Thirty percent (30%) cash, the balance to be paid in government financial instruments negotiable at
any time. (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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AGRARIAN LAW - UNGOS BOOK NOTES

AYAME MATSUMORI ^_^

 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

Reform
 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

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.

Agriculture,

Agricultural

Enterprise or

Agricultural

Activity

 cultivation of the soil,

 planting of crops,

 growing of fruit trees,

 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 persons whether natural or juridical.

(amended)

Agricultural
Land

 land devoted to agricultural activity as defined in

this Act and

 not classified as mineral, forest, residential,

commercial or industrial land.

Agrarian

Dispute

 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.

 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

Abandoned

Land

 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,

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.
AGRARIAN LAW - UNGOS BOOK NOTES

AYAME MATSUMORI ^_^

Farmworker

 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

 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

Farmworker

 natural person who is employed on a permanent

basis by an agricultural enterprise or farm.

Seasonal

Farmworker

 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.

Other

Farmworker

 farmworker who is not regular or seasonal

farmworker

Cooperatives

 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.

 juridical person may be a member of a

cooperative, with the same rights and duties as a

natural person.

Rural women

 women who are engaged directly or indirectly in

farming and/or fishing as their source of livelihood,

whether paid or unpaid, regular or seasonal, or in

food preparation, managing the household,

caring for 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.

___________________________________________________________________

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 LAW - UNGOS BOOK NOTES

AYAME MATSUMORI ^_^

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

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

AGRARIAN LAW - UNGOS BOOK NOTES

AYAME MATSUMORI ^_^

 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 HOMESTEADERS3 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

3 a mode of acquiring alienable and disposable lands of the public domain for

agricultural purposes conditioned upon actual cultivation and residence

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

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
AGRARIAN LAW - UNGOS BOOK NOTES

AYAME MATSUMORI ^_^

 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

AGRARIAN LAW - UNGOS BOOK NOTES

AYAME MATSUMORI ^_^

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:

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 to 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

AGRARIAN LAW - UNGOS BOOK NOTES

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10

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 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

AGRARIAN LAW - UNGOS BOOK NOTES

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11

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

AGRARIAN LAW - UNGOS BOOK NOTES

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12

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 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

AGRARIAN LAW - UNGOS BOOK NOTES

AYAME MATSUMORI ^_^

13

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

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
AGRARIAN LAW - UNGOS BOOK NOTES

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14

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

 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

AGRARIAN LAW - UNGOS BOOK NOTES

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15

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

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

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 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

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

AGRARIAN LAW - UNGOS BOOK NOTES

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17

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

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

AGRARIAN LAW - UNGOS BOOK NOTES

AYAME MATSUMORI ^_^

18

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.

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

are present

CNI x 0.6 + CS x 0.30 + MV x 0.10 = Land Value

When CNI factor is

not presernt

CS x 0.90 + MV x 0.10 = Land Value

When CS factor is

not present

CNI x 0.90 + MV x 0.10 = Land Value

Formula when CS

and CNI are not

present

MV x 2 = Land Value

RECKONING OF VALUATION

 General Rule Basis for just compensation is the value of property

AGRARIAN LAW - UNGOS BOOK NOTES

AYAME MATSUMORI ^_^

19

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 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

AGRARIAN LAW - UNGOS BOOK NOTES

AYAME MATSUMORI ^_^

20

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,

insofar as the excess hectarage is

concerned.

Twenty-five percent (25%) cash, the balance to be

paid in government financial instruments

negotiable at any time.

(b) For lands above twenty-four (24)

hectares and up to fifty (50) hectares.

Thirty percent (30%) cash, the balance to be paid

in government financial instruments negotiable at

any time.

(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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