Home

G.R.No.86889

Preface
CARL(R.A.6657,as
amended)andRelated
Laws

ENBANC

HistoryandEvolutionof
MajorAgrarianReform
Laws
Issuances
PhilippineConstitution
Laws,Statutesand
PresidentialIssuances
SupremeCourt
DecisionsandIssuances
CourtofAppeals
Decisions

[G.R.No.86889.December4,1990.]

LUZFARMS,petitioner,vs.THE
HONORABLESECRETARYOFTHE
DEPARTMENTOFAGRARIANREFORM,
respondent.

EnriqueM.Beloforpetitioner.

ImplementingRulesand
Regulations
IssuancesfromOther
GovernmentAgencies
Handbooksand
Publications
ArticlesandJournals
FormsandTemplates
LectureMaterials
Login

DECISION
PARAS,J :
p

Thisisapetitionforprohibitionwith
prayerforrestrainingorderand/or
preliminaryandpermanentinjunction
againsttheHonorableSecretaryofthe
DepartmentofAgrarianReformforacting
withoutjurisdictioninenforcingtheassailed
provisionsofR.A.No.6657,otherwise
knownastheComprehensiveAgrarian
ReformLawof1988andinpromulgatingthe

GuidelinesandProcedureImplementing
ProductionandProfitSharingunderR.A.
No.6657,insofarasthesameapplyto
hereinpetitioner,andfurtherfrom
performinganactinviolationofthe
constitutionalrightsofthepetitioner.
Asgatheredfromtherecords,the
factualbackgroundofthiscase,isas
follows:
OnJune10,1988,thePresidentof
thePhilippinesapprovedR.A.No.6657,
whichincludestheraisingoflivestock,
poultryandswineinitscoverage(Rollo,p.
80).
OnJanuary2,1989,theSecretaryof
AgrarianReformpromulgatedthe
GuidelinesandProceduresImplementing
ProductionandProfitSharingasembodied
inSections13and32ofR.A.No.6657
(Rollo,p.80).
OnJanuary9,1989,theSecretaryof
AgrarianReformpromulgateditsRulesand
RegulationsimplementingSection11of
R.A.No.6657(CommercialFarms).(Rollo,
p.81).
LuzFarms,petitionerinthiscase,isa
corporationengagedinthelivestockand
poultrybusinessandtogetherwithothersin
thesamebusinessallegedlystandstobe
adverselyaffectedbytheenforcementof
Section3(b),Section11,Section13,
Section16(d)and17andSection32ofR.A.
No.6657otherwiseknownas
ComprehensiveAgrarianReformLawand
oftheGuidelinesandProcedures
ImplementingProductionandProfitSharing
underR.A.No.6657promulgatedon
January2,1989andtheRulesand
RegulationsImplementingSection11
thereofaspromulgatedbytheDARon
January9,1989(Rollo,pp.236).

 Hence,thispetitionprayingthat
aforesaidlaws,guidelinesandrulesbe
declaredunconstitutional.Meanwhile,itis
alsoprayedthatawritofpreliminary
injunctionorrestrainingorderbeissued
enjoiningpublicrespondentsfromenforcing
thesame,insofarastheyaremadetoapply
toLuzFarmsandotherlivestockandpoultry
raisers.
ThisCourtinitsResolutiondatedJuly
4,1939resolvedtodeny,amongothers,Luz
Farms'prayerfortheissuanceofa
preliminaryinjunctioninitsManifestation
datedMay26,and31,1989.(Rollo,p.98).
Later,however,thisCourtinits
ResolutiondatedAugust24,1989resolved
tograntsaidMotionforReconsideration
regardingtheinjunctiverelief,afterthefiling
andapprovalbythisCourtofaninjunction
bondintheamountofP100,000.00.This
Courtalsogaveduecoursetothepetition
andrequiredthepartiestofiletheir
respectivememoranda(Rollo,p.119).
ThepetitionerfileditsMemorandum
onSeptember6,1989(Rollo,pp.131168).
OnDecember22,1989,theSolicitor
GeneraladoptedhisCommenttothe
petitionashisMemorandum(Rollo,pp.186
187).
LuzFarmsquestionsthefollowing
provisionsofR.A.6657,insofarastheyare
madetoapplytoit:
(a)Section3(b)whichincludesthe"raising
oflivestock(andpoultry)"inthedefinitionof
"Agricultural,AgriculturalEnterpriseor
AgriculturalActivity."
(b)Section11whichdefines"commercial
farms"as"privateagriculturallandsdevoted
tocommercial,livestock,poultryandswine
raising..."

(c)Section13whichcallsuponpetitioner
toexecuteaproductionsharingplan.
(d)Section16(d)and17whichvestonthe
DepartmentofAgrarianReformtheauthority
tosummarilydeterminethejust
compensationtobepaidforlandscovered
bytheComprehensiveAgrarianReformLaw.
(e)Section32whichspellsoutthe
productionsharingplanmentionedinSection
13
"...(W)herebythree
percent(3%)ofthegross
salesfromtheproductionof
suchlandsaredistributed
withinsixty(60)daysofthe
endofthefiscalyearas
compensationtoregularand
otherfarmworkersinsuch
landsoverandabovethe
compensationtheycurrently
receive:Provided,Thatthese
individualsorentitiesrealize
grosssalesinexcessoffive
millionpesosperannum
unlesstheDAR,uponproper
application,determinealower
ceiling.
Intheeventthatthe
individualorentityrealizesa
profit,anadditionalten(10%)
ofthenetprofitaftertaxshall
bedistributedtosaidregular
andotherfarmworkerswithin
ninety(90)daysoftheendof
thefiscalyear..."

Themainissueinthispetitionisthe
constitutionalityofSections3(b),11,13and
32ofR.A.No.6657(theComprehensive

AgrarianReformLawof1988),insofaras
thesaidlawincludestheraisingoflivestock,
poultryandswineinitscoverageaswellas
theImplementingRulesandGuidelines
promulgatedinaccordancetherewith.

Theconstitutionalprovisionunder
considerationreadsasfollows:
ARTICLEXIII
xxxxxxxxx
AGRARIANANDNATURALRESOURCES
REFORM
Section4.TheStateshall,bylaw,
undertakeanagrarianreformprogram
foundedontherightoffarmersandregular
farmworkers,whoarelandless,toown
directlyorcollectivelythelandstheytillor,in
thecaseofotherfarmworkers,toreceivea
justshareofthefruitsthereof.Tothisend,
theStateshallencourageandundertakethe
justdistributionofallagriculturallands,
subjecttosuchprioritiesandreasonable
retentionlimitsastheCongressmay
prescribe,takingintoaccountecological,
developmental,orequityconsiderations,and
subjecttothepaymentofjustcompensation.
Indeterminingretentionlimits,theStateshall
respecttherightsofsmalllandowners.The
Stateshallfurtherprovideincentivesfor
voluntarylandsharing.
xxxxxxxxx"

LuzFarmscontendedthatitdoesnot
seekthenullificationofR.A.6657inits
entirety.Infact,itacknowledgesthe
correctnessofthedecisionofthisCourtin
thecaseoftheAssociationofSmall
LandownersinthePhilippines,Inc.vs.
SecretaryofAgrarianReform(G.R.78742,
14July1989)affirmingtheconstitutionality
oftheComprehensiveAgrarianReformLaw.

It,however,arguedthatCongressin
enactingthesaidlawhastranscendedthe
mandateoftheConstitution,inincluding
landdevotedtotheraisingoflivestock,
poultryandswineinitscoverage(Rollo,p.
131).Livestockorpoultryraisingisnot
similartocroportreefarming.Landisnot
theprimaryresourceinthisundertakingand
representsnomorethanfivepercent(5%)
ofthetotalinvestmentofcommercial
livestockandpoultryraisers.Indeed,there
aremanyownersofresidentiallandsall
overthecountrywhouseavailablespacein
theirresidenceforcommerciallivestockand
raisingpurposes,under"contractgrowing
arrangements,"wherebyprocessing
corporationsandothercommerciallivestock
andpoultryraisers(Rollo,p.10).Lands
supportthebuildingsandotheramenities
attendanttotheraisingofanimalsandbirds.
Theuseoflandisincidentaltobutnotthe
principalfactororconsiderationin
productivityinthisindustry.Including
backyardraisers,about80%ofthosein
commerciallivestockandpoultryproduction
occupyfivehectaresorless.Theremaining
20%aremostlycorporatefarms(Rollo,p.
11).
Ontheotherhand,thepublic
respondentarguedthatlivestockandpoultry
raisingisembracedintheterm"agriculture"
andtheinclusionofsuchenterpriseunder
Section3(b)ofR.A.6657isproper.Hecited
thatWebster'sInternationalDictionary,
SecondEdition(1954),definesthefollowing
words:
"Agriculturetheartorscienceof
cultivatingthegroundandraisingand
harvestingcrops,often,includingalso,
feeding,breedingandmanagementof
livestock,tillage,husbandry,farming.

Itincludesfarming,horticulture,forestry,
dairying,sugarmaking...
Livestockdomesticanimalsusedorraised
onafarm,especiallyforprofit.
Farmaplotortractoflanddevotedtothe
raisingofdomesticorotheranimals."(Rollo,
pp.8283).

Thepetitionisimpressedwithmerit.
Thequestionraisedisoneof
constitutionalconstruction.Theprimarytask
inconstitutionalconstructionistoascertain
andthereafterassuretherealizationofthe
purposeoftheframersintheadoptionofthe
Constitution(J.M.Tuazon&Co.vs.Land
TenureAdministration,31SCRA413
[1970]).
Ascertainmentofthemeaningofthe
provisionofConstitutionbeginswiththe
languageofthedocumentitself.Thewords
usedintheConstitutionaretobegiventheir
ordinarymeaningexceptwheretechnical
termsareemployedinwhichcasethe
significancethusattachedtothemprevails
(J.M.Tuazon&Co.vs.LandTenure
Administration,31SCRA413[1970]).
Itisgenerallyheldthat,inconstruing
constitutionalprovisionswhichare
ambiguousorofdoubtfulmeaning,the
courtsmayconsiderthedebatesinthe
constitutionalconventionasthrowinglight
ontheintentoftheframersofthe
Constitution.Itistruethattheintentofthe
conventionisnotcontrollingbyitself,butas
itsproceedingwaspreliminarytothe
adoptionbythepeopleoftheConstitution
theunderstandingoftheconventionasto
whatwasmeantbythetermsofthe
constitutionalprovisionwhichwasthe
subjectofthedeliberation,goesalongway
towardexplainingtheunderstandingofthe

peoplewhentheyratifiedit(Aquino,Jr.v.
Enrile,59SCRA183[1974]).
Thetranscriptsofthedeliberationsof
theConstitutionalCommissionof1986on
themeaningoftheword"agricultural,"
clearlyshowthatitwasnevertheintention
oftheframersoftheConstitutiontoinclude
livestockandpoultryindustryinthe
coverageoftheconstitutionallymandated
agrarianreformprogramoftheGovernment.
TheCommitteeadoptedthedefinition
of"agriculturalland"asdefinedunder
Section166ofR.A.3844,aslauddevoted
toanygrowth,includingbutnotlimitedto
croplands,saltbeds,fishponds,idleand
abandonedland(Record,CONCOM,
August7,1986,Vol.III,p.11).
TheintentionoftheCommitteeisto
limittheapplicationoftheword"agriculture."
CommissionerJamirproposedtoinsertthe
word"ARABLE"todistinguishthiskindof
agriculturallandfromsuchlandsas
commercialandindustriallandsand
residentialpropertiesbecauseallofthem
fallunderthegeneralclassificationofthe
word"agricultural".Thisproposal,however,
wasnotconsideredbecausetheCommittee
contemplatedthatagriculturallandsare
limitedtoarableandsuitableagricultural
landsandtherefore,donotinclude
commercial,industrialandresidentiallands
(Record,CONCOM,August7,1986,Vol.III,
p.30).
Intheinterpellation,then
CommissionerRegalado(nowaSupreme
CourtJustice),posedseveralquestions,
amongothers,quotedasfollows:
xxxxxxxxx
"Line19referstogenuinereformprogram
foundedontheprimaryrightoffarmersand
farmworkers.Iwonderifitmeansthat

leaseholdtenancyistherebyproscribed
underthisprovisionbecauseitspeaksofthe
primaryrightoffarmersandfarmworkersto
owndirectlyorcollectivelythelandstheytill.
AsalsomentionedbyCommissionerTadeo,
farmworkersincludethosewhoworkin
piggeriesandpoultryprojects.
IwaswonderingwhetherIamwronginmy
appreciationthatifsomebodyputsupa
piggeryorapoultryprojectandforthat
purposehiresfarmworkerstherein,these
farmworkerswillautomaticallyhavetheright
toowneventually,directlyorultimatelyor
collectively,thelandonwhichthepiggeries
andpoultryprojectswereconstructed.
(Record,CONCOM,August2,1986,p.618).
xxxxxxxxx

Thequestionswereansweredand
explainedinthestatementofthen
CommissionerTadeo,quotedasfollows:
xxxxxxxxx
"SapangalawangkatanunganngGinooay
medyohindikaminagkaunawaan.
IpinaaalamkokayCommissionerRegalado
nahindinamininilagayangagricultural
workersakadahilanangkasamaritoang
piggery,poultryatlivestockworkers.Ang
inilagaynaminditoayfarmworkerkayahindi
kasamaangpiggery,poultryatlivestock
workers(Record,CONCOM,August2,1986,
Vol.II,p.621).

Itisevidentfromtheforegoing
discussionthatSectionIIofR.A.6657which
includes"privateagriculturallandsdevoted
tocommerciallivestock,poultryandswine
raising"inthedefinitionof"commercial
farms"isinvalid,totheextentthatthe

aforecitedagroindustrialactivitiesaremade
tobecoveredbytheagrarianreform
programoftheState.Thereissimplyno
reasontoincludelivestockandpoultrylands
inthecoverageofagrarianreform.(Rollo,p.
21).
Hence,thereismeritinLuzFarms'
argumentthattherequirementinSections
13and32ofR.A.6657directing"corporate
farms"whichincludelivestockandpoultry
raiserstoexecuteandimplement
"productionsharingplans"(pendingfinal
redistributionoftheirlandholdings)whereby
theyarecalledupontodistributefromthree
percent(3%)oftheirgrosssalesandten
percent(10%)oftheirnetprofitstotheir
workersasadditionalcompensationis
unreasonableforbeingconfiscatory,and
thereforeviolativeofdueprocess(Rollo,p.
21).
IthasbeenestablishedthatthisCourt
willassumejurisdictionoveraconstitutional
questiononlyifitisshownthattheessential
requisitesofajudicialinquiryintosucha
questionarefirstsatisfied.Thus,theremust
beanactualcaseorcontroversyinvolvinga
conflictoflegalrightssusceptibleofjudicial
determination,theconstitutionalquestion
musthavebeenopportunelyraisedbythe
properparty,andtheresolutionofthe
questionisunavoidablynecessarytothe
decisionofthecaseitself(Associationof
SmallLandownersofthePhilippines,Inc.v.
SecretaryofAgrarianReform,G.R.78742
Acunav.Arroyo,G.R.79310Pabicov.
Juico,G.R.79744Manaayv.Juico,G.R.
79777,14July1989,175SCRA343).
However,despitetheinhibitions
pressingupontheCourtwhenconfronted
withconstitutionalissues,itwillnothesitate
todeclarealaworactinvalidwhenitis
convincedthatthismustbedone.Inarriving
atthisconclusion,itsonlycriterionwillbe

theConstitutionandGodasitsconscience
givesitinthelighttoprobeitsmeaningand
discoveritspurpose.Personalmotivesand
politicalconsiderationsareirrelevanciesthat
cannotinfluenceitsdecisions.Blandishment
isasineffectualasintimidation,forallthe
awesomepoweroftheCongressand
Executive,theCourtwillnothesitate"to
makethehammerfallheavily,"wherethe
actsofthesedepartments,orofanyofficial,
betraythepeople'swillasexpressedinthe
Constitution(AssociationofSmall
LandownersofthePhilippines,Inc.v.
SecretaryofAgrarianReform,G.R.78742
Acunav.Arroyo,G.R.79310Pabicov.
Juico,G.R.79744Manaayv.Juico,G.R.
79777,14July1989).
Thus,wherethelegislatureortheexecutive
actsbeyondthescopeofitsconstitutional
powers,itbecomesthedutyofthejudiciary
todeclarewhattheotherbranchesofthe
governmenthadassumedtodo,asvoid.
Thisistheessenceofjudicialpower
conferredbytheConstitution"(I)none
SupremeCourtandinsuchlowercourtsas
maybeestablishedbylaw"(Art.VIII,
Section1ofthe1935ConstitutionArticleX,
SectionIofthe1973Constitutionandwhich
wasadoptedaspartoftheFreedom
Constitution,andArticleVIII,Section1of
the1987Constitution)andwhichpowerthis
Courthasexercisedinmanyinstances
(Demetriav.Alba,148SCRA208[1987]).
PREMISESCONSIDERED,the
instantpetitionisherebyGRANTED.
Sections3(b),11,13and32ofR.A.No.
6657insofarastheinclusionoftheraising
oflivestock,poultryandswineinits
coverageaswellastheImplementingRules
andGuidelinespromulgatedinaccordance
therewith,areherebyDECLAREDnulland
voidforbeingunconstitutionalandthewrit

ofpreliminaryinjunctionissuedishereby
MADEpermanent.
SOORDERED.
Fernan(C.J.),Narvasa,Melencio
Herrera,Gutierrez,Jr.,Cruz,Gancayco,
Padilla,Bidin,GrioAquino,Medialdeaand
Regalado,JJ.,concur.
Feliciano,J.,isonleave.

SeparateOpinions

SARMIENTO,J.,concurring:
Iagreethatthepetitionbegranted.
Itismyopinionhoweverthatthemain
issueonthevalidityoftheassailed
provisionsofR.A.6657(theComprehensive
AgrarianReformLawof1988)andits
ImplementingRulesandGuidelinesinsofar
astheyincludetheraisingoflivestock,
poultry,andswineintheircoveragecannot
besimplisticallyreducedtoaquestionof
constitutionalconstruction.
Itisawellsettledrulethat
constructionandinterpretationcomeonly
afterithasbeendemonstratedthat
applicationisimpossibleorinadequate
withoutthem.Aclosereadinghoweverof
theconstitutionaltextinpoint,specifically,
Sec.4,Art.XIII,particularlythephrase,"...
incaseofotherfarmworkers,toreceivea
justshareofthefruitsthereof,"providesa
basisfortheclearandpossiblecoverageof
livestock,poultry,andswineraisingwithin
theambitofthecomprehensiveagrarian
reformprogram.Thisaccordswiththe
principlethateverypresumptionshouldbe
indulgedinfavoroftheconstitutionalityofa
statuteandthecourtinconsideringthe
validityofastatuteshouldgiveitsuch

reasonableconstructionascanbereached
tobringitwithinthefundamentallaw.1
Thepresumptionagainst
unconstitutionality,Imustsay,assumes
greaterweightwhenarulingtothecontrary
would,ineffect,defeatthelaudableand
noblepurposeofthelaw,i.e.,thewelfareof
thelandlessfarmersandfarmworkersinthe
promotionofsocialjustice,bytheexpedient
conversionofagriculturallandsinto
livestock,poultry,andswineraisingby
scheminglandowners,thus,renderingthe
comprehensivenatureoftheagrarian
programmerelyillusory.
Theinstantcontroversy,Isubmit,
boilsdowntothequestionofwhetherornot
theassailedprovisionsviolatetheequal
protectionclauseoftheConstitution(Article
II,section1)whichteachessimplythatall
personsorthingssimilarlysituatedshould
betreatedalike,bothastorightsconferred
andresponsibilitiesimposed.2
Thereismeritinthecontentionofthe
petitionerthatsubstantialdistinctionsexist
betweenlanddirectedpurelytocultivation
andharvestingoffruitsorcropsandland
exclusivelyusedforlivestock,poultryand
swineraising,thatmakerealdifferences,to
wit:
xxxxxxxxx
Nolandistilledandnocropisharvestedin
livestockandpoultryfarming.Thereareno
tenantsnorlandlords,onlyemployersand
employees.
Livestockandpoultrydonotsproutfromland
norarethey"fruitsoftheland."
Landisnotevenaprimaryresourceinthis
industry.Thelandinputisinconsequential
thatallthecommercialhogandpoultryfarms
combinedoccupylessthanonepercent(1%)

(0.4%forpiggery,0.2%forpoultry)ofthe
5.45millionhectaresoflandsupposedly
coveredbytheCARP.Andmostfarmsutilize
only2to5hectaresofland.
Ineveryrespectlivestockandpoultry
productionisanindustrialactivity.Itsuseof
aninconsequentialportionoflandisamere
incidentofitsoperation,asinanyother
undertaking,businessorotherwise.
Thefallacyofdefininglivestockandpoultry
productionasanagriculturalenterpriseis
nowheremoreevidentwhenoneconsiders
thatatleast95%oftotalinvestmentinthese
farmsisintheformoffixedassetswhichare
industrialinnature.
Theseinclude(1)animalhousingstructures
andfacilitiescompletewithdrainage,
waterers,blowers,mistersandinsome
casesevenpipedinmusic(2)feedmills
completewithgrinders,mixers,conveyors,
exhausts,generators,etc.(3)extensive
warehousingfacilitiesforfeedsandother
supplies(4)antipollutionequipmentsuchas
biogasanddigesterplantsaugmentedby
lagoonsandconcreteponds(5)deepwells,
elevatedwatertanks,pumphousesand
accessoryfacilities(6)modernequipment
suchassprayers,pregnancytesters,etc.(7)
laboratoryfacilitiescompletewithexpensive
toolsandequipmentandamyriadother
suchtechnologicallyadvancedappurtances.
Howthencanlivestockandpoultryfarmlands
bearablewhensucharealmosttotally
occupiedbythesestructures?
Thefallacyofequatingthestatusoflivestock
andpoultryfarmworkerswiththatof
agriculturaltenantssurfaceswhenone
considerscontributiontooutput.Laborcost
oflivestockandpoultryfarmsisnomorethan

4%oftotaloperatingcost.The98%balance
representsinputsnotobtainedfromtheland
norprovidedbythefarmworkersinputs
suchasfeedsandbiochemicals(80%ofthe
totalcost),powercost,costofmoneyand
severalothers.
Moreover,livestockandpoultryfarmworkers
arecoveredbyminimumwagelawrather
thanbytenancylaw.Theyareentitledto
socialsecuritybenefitswheretenantfarmers
arenot.Theyarepaidfixedwagesrather
thancropshares.Andasinanyother
industry,theyreceiveadditionalbenefitssuch
asallowances,bonuses,andotherincentives
suchasfreehousingprivileges,lightand
water.
Equatinglivestockandpoultryfarmingwith
otheragriculturalactivitiesisalsofallacious
inthesensethatlikethemanufacturing
sector,itisamarketfor,ratherthanasource
ofagriculturaloutput.Atleast60%ofthe
entiredomesticsupplyofcornisabsorbedby
livestockandpoultryfarms.Soaretheby
productsofrice(ricebran),coconut(copra
meal),banana(bananapulpmeal),andfish
(fishmeal).3
xxxxxxxxx

Inviewoftheforegoing,itisclearthat
bothkindsoflandsarenotsimilarlysituated
andhence,cannotbetreatedalike.
Therefore,theassailedprovisionswhich
allowfortheinclusionoflivestockand
poultryindustrywithinthecoverageofthe
agrarianreformprogramconstituteinvalid
classificationandmustaccordinglybestruck
downasrepugnanttotheequalprotection
clauseoftheConstitution.
Footnotes

SARMIENTO,J.,concurring:

1.InreGuarina,24Phil.37YuCongEngv.
Trinidad,70L.ed.,p.1059.
2.Ichongv.Hernandez,101Phil.1155.
3.Rollo,2930.

HELPCENTER
HowtoUsetheERCLegal
InformationArchive

CONTACT
INFORMATION

Copyright
Information

DepartmentofAgrarianReform

Allmaterialcontainedin

EllipticalRoad,Diliman

thissiteiscopyrightedby

QuezonCity,Philippines

theDepartmentof

Tel.No.:(632)9287031to
39

AgrarianReformunless
otherwisespecified.For
thepurposesofthis
demo,informationare
intendedtoshowa
representativeexampleof
alivesite.Allimagesand
materialsarethe
copyrightoftheir
respectiveowners.