Comprehensive Agrarian Reform Law (1998)

Republic Act 6657

History of agrarian reform
Pre-Spanish Period
There were no owner-cultivators, only communal land owned
by the barangay which consisted of a datu, freemen, serfs and
slaves.
Everyone can access the fruits of the soil.
Spanish Period
Relationship between landowners and tenants was governed
by the Civil Code, particularly by the Special Provisions for
Rural Leases
Encomienda system was introduced
Most of the land were distributed to the Spanish military and
clergy
American Regime
Rice Share Tenancy Act was promulgated which regulated
relationships between landlords and tenants on rice lands
Sugar Tenancy Act was also enacted to regulate relationships
between landlords and tenants on lands planted with sugar
cane
Commonwealth
Commonwealth Act 53 was passed which recognized the
testimony of the tenant as prima facie evidence of the terms
of a tenancy contract not reduced in writing known to him
Commonwealth Act 178 and 271 amending provisions of the
Rice Share Tenancy Act and extending the same to sugar
farmers.
Commonwealth Act 461 and 608 provided for the security of
tenure of agricultural tenants

Manuel Roxas (1946-1948)

Republic Act 34 amended the Rice Share Tenancy Act by
introducing changes in crop division.
70-30 sharing arrangement between the tenant and the
landlord
Reduced the interest of landowners loans to tenants at not
more than 6%
Elpidio Quirino (1948-1953)
Established the Land Settlement Development Corporation
(LASEDECO) to accelerate and expand the peasant
resettlement program of the government.
Ramon Magsaysay (1953-1957)
R.A. No. 1199 Agricultural Tenancy Act was enacted which
governed relationships between landholders and tenantfarmers. Helped protect the tenurial rights of tenant tillers and
enforced fair tenancy practices
R.A. No. 1160 Free distribution of Resettlement and
Rehabilitation and Agricultural land and an Act establishing the
National Resettlement and Rehabilitation Administration
(NARRA)
Ramon Magsaysay (1953-1957)
R.A. No. 1400 Land Reform Act also known as Land to the
Landless Program sought improvement in land tenure and
guaranteed the expropriation of all tenanted landed estates.
Diosdado Macapagal (1961-1965)
Father of Agrarian Reform
Enacted R.A. No. 3844 or the Agricultural Land Reform Code
which abolished share tenancy, prescribed programs
converting the tenant farmers to lessees and eventually into
owner-cultivators.

Ferdinand E. Marcos (1965-1986)

R.A. No. 6389 The Code of Agrarian Reforms was enacted
which governed the implementation of agrarian reform in the
Philippines, created the Department of Agrarian Reform
R.A. No. 6390 was enacted to expedite the implementation of
the agrarian reform program in the fields of land acquisition
and agricultural credit
Ferdinand E. Marcos (1965-1986)
P.D. No. 27 or the Tenant Emancipation Law provided for the
transfer of lands primarily devoted to rice and corn to the
tenants.
Corazon C. Aquino (1986-1992)
E.O. No. 228 declared full land ownership in favor of
beneficiaries under P.D. No. 27
E.O. No. 229 provided for the implementation of EO 228
Proclamation No. 131 instituted a comprehensive agrarian
reform program
Comprehensive Agrarian Reform Law of 1988 was enacted on
June 10, 1988
General Concepts
Agrarian Law
Embraces all laws that govern and regulate the rights and
relationship over agricultural lands between landowners,
tenants, lessees or agricultural workers.
Land Reform
Refers to all sets of activities and measures that may or should
be taken to improve or correct the defects or problems in the
relations among men with respect to their rights to the land
they till.

Technically defined as an integrated set of measures designed

to eliminate obstacles to economic and social development
arising out of defects in the agrarian structure
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
tactors and support services designed to lift the economic
status of the beneficiaries and all other arrangements
alternative to the physical redistribution of lands, such as
production or profit-sharing, labor administration, and the
distribution of shares of stocks, which will allow beneficiaries
to receive a just share of the fruits of the lands they work.
Agricultural Land
Land devoted to agricultural activities
Contemplate lands that are arable and suitable for farming
Primary Objective of Agrarian Reform
Breakup agricultural lands
Transform them into economic-size farms
To be owned by the farmers themselves
To uplift their socio-economic status
Economic Family-Size Farm
Area of farm land that permits efficient use of labor and capital
resources of the farm family and will produce an income
sufficient to provide a modest standard of living to meet a
farm familys needs for food, clothing, shelter, and education
with possible allowance for payment of yearly installments on
the land, and reasonable reserves to absorb yearly fluctuations
in income.
Major features of RA 6657
Provides for the coverage of all agricultural lands regardless
of crops produced or tenurial status of tillers

 Recognizes as beneficiaries all workers in the land given

that they are landless and willing to till the land
Provides for the delivery of support services to program
beneficiaries
Provide for arrangements that ensure the tenurial security
of farmers and farmworkers as the leasehold arrangement,
stock distribution option and production and profit sharing
Creates an adjudication body that will resolve agrarian
disputes
Land acquisition
Police Power
The power vested in the legislature by the Constitution to
make, ordain, establish all manner of wholesome and
reasonable laws for the good and welfare of the State and its
people. (ERMITA MALATE HOTEL VS. CITY MAYOR, July
31, 1967)
Eminent Domain
Right or power of a sovereign state to appropriate private
property to particular uses to promote public welfare. It is an
indispensable attribute of sovereignty; a power grounded in
the primary duty of government to serve the common need
and advance the general welfare.
The Constitution provides that private property shall not be
taken for public use without just compensation. Furthermore,
the due process and equal protection clauses act as additional
safeguards against the arbitrary exercise of this governmental
power.
Requisites
1. An ordinance is enacted by the local legislative
council authorizing the local chief executive, in
behalf of the local government unit, to exercise
the power of eminent domain or pursue

expropriation proceedings over a particular

private property.
2. The power of eminent domain is exercised for
public use, purpose or welfare, or for the benefit
of the poor and the landless.
3. There is payment of just compensation, as
required under Section 9, Article III of the
Constitution, and other pertinent laws.
4. A valid and definite offer has been previously
made to the owner of the property sought to be
expropriated, but said offer was not accepted.
Procedure for land acquisition
Transfer of Private and Public Lands to Farmer Beneficiaries

Scope
Except as otherwise provided in this Act, no person may own
or
retain,
directly
or
indirectly,
any
public
or
private agricultural land, the size of which shall vary according
to factors governing a viable family-size farm, such as
commodity produced, terrain, infrastructure, and soil fertility
as determined by the Presidential Agrarian Reform Council
(PARC) created hereunder, but in no case shall retention by the
landowner exceed five (5) hectares.

Three (3) hectares may be awarded to each child of the

landowner, subject to the following qualifications:
-that he is at least fifteen (15) years of age; and
-that he is actually tilling the land or directly managing
the
farm:
-Provided, That landowners whose lands have been
covered by Presidential Decree No. 27 shall be allowed to keep
the areas originally retained by them thereunder:
-Provided, further, That original homestead grantees or
their
direct
compulsory
heirs
who
still
own
the
original homestead at the time of the approval of this Act shall

retain the same areas as long as they continue to cultivate

said homestead
The right to choose the area to be retained, which shall be
compact or contiguous, shall pertain to the landowner
In case the area selected for retention by the landowner is
tenanted, the tenant shall have the option to choose whether
to remain therein or be a beneficiary in the same or
another agricultural land with similar or comparable features
Rights of the Tenant
In case the tenant chooses to remain in the retained area, he
shall be considered a leaseholder and shall lose his right to be
a beneficiary under this Act
In case the tenant chooses to be a beneficiary in another
agricultural land, he loses his right as a leaseholder to the land
retained by the landowner
The tenant must exercise this option within a period of one (1)
year from the time the landowner manifests his choice of the
area for retention. In all cases, the security of tenure of the
farmers or farmworkers on the land prior to the approval of
this Act shall be respected.
Upon the effectivity of this Act, any sale, disposition, lease,
management, contract or transfer of possession of private
lands executed by the original landowner in violation of the Act
shall be null and void
Those executed prior to this Act shall be valid only when
registered with the Register of Deeds within a period of three
(3) months after the effectivity of this Act. Thereafter, all
Registers of Deeds shall inform the Department of Agrarian
Reform (DAR) within thirty (30) days of any transaction
involving agricultural lands in excess of five (5) hectares

Priorities of Coverage
The Department of Agrarian Reform (DAR) in coordination with
the Presidential Agrarian Reform Council (PARC) shall plan
and program the acquisition and distribution of all agricultural
lands through a period of ten (10) years from the effectivity of
this Act.
Phase One
Rice and corn lands under Presidential Decree No. 27; all idle
or abandoned lands; all private lands voluntarily offered by
the owners for agrarian reform; all lands foreclosed by the
government financial institutions; all lands acquired by the
Presidential Commission on Good Government (PCGG); and all
other lands owned by the government devoted to or suitable
for agriculture, which shall be acquired and distributed
immediately upon the effectivity of this Act, with the
implementation to be completed within a period of not more
than four (4) years;
Phase Two
All alienable and disposable public agricultural lands; all
arable public agricultural lands under agro-forest, pasture and
agricultural leases already cultivated and planted to crops in
accordance with Section 6, Article XIII of the Constitution; all
public agricultural lands which are to be opened for new
development and resettlement; and all private agricultural
lands in excess of fifty (50) hectares, insofar as the excess
hectarage is concerned, to implement principally the rights of
farmers and regular farmworkers, who are the landless, to own
directly or collectively the lands they till, which shall be
distributed immediately upon the effectivity of this Act, with
the implementation to be completed within a period of not
more than four (4) years.
Phase Three

All other private agricultural lands commencing with

large landholdings and proceeding to medium and small
landholdings under the following schedule:
(a) Landholdings above twenty-four (24) hectares up to
fifty (50) hectares, to begin on the fourth (4th) year from the
effectivity of this Act and to be completed within three (3)
years; and
(b) Landholdings from the retention limit up to twenty-four (24)
hectares, to begin on the sixth (6th) year from the
effectivity of this Act and to be completed within four (4)
years; to implement principally the right of farmers and
regular farmworkers who are landless, to own directly or
collectively the lands they till.
Notes
Schedule of acquisition and redistribution shall be in
accordance with the previously mentioned order of priority
provided in the implementing rules to be prepared by the
Presidential Agrarian Reform Council (PARC) considering the
following:
The need to distribute land to the tillers at the earliest
practicable time;
The need to enhance agricultural productivity;
The availability of funds and resources to implement
and support the program
In any case, the PARC, upon recommendation by the Provincial
Agrarian Reform Coordinating Committee (PARCCOM), may
declare certain provinces or region as priority land reform
areas, in which the acquisition and distribution of private
agricultural lands therein may be implemented ahead of the
above schedules. In effecting the transfer within these
guidelines, priority must be given to lands that are tenanted.
The PARC shall establish guidelines to implement the above
priorities and distribution scheme, including the determination
of who are qualified beneficiaries: Provided, That an owner-

tiller may be a beneficiary of the land he does not own but

is actually cultivating to the extent of the difference between
the area of the land he owns and the award ceiling of three (3)
hectares.
Multinational Corporations
Agricultural lands leased, held or possessed by multinational
corporations are subject to compulsory acquisition and
distribution to be distributed directly to the individual workerbeneficiaries
If it is not economically feasible to divide the land, a workers
cooperative or association shall deal with the corporation by
way of lease or growers agreement and other legitimate
purposes.
Ancestral Lands
Lands of the 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 thirty (30) years before
the date of approval of PD 410
Exempted from Agrarian Reform Law
Procedure for acquisition of private lands
Acquisition of Private Lands
1. Sending of Notice to acquire the land to the owners, by
personal service, registered mail and posting of the
same in a conspicuous place in the municipal building or
barangay hall of the place where the property is located.
Notice shall contain the offer of DAR with valuation in
accordance to Sec 17, 18 and other pertinent provisions.

2. Owner, administrator or representative shall inform the

DAR of his acceptance or rejection within thirty (30)
days
3. If the landowner accepts, the Land Bank of the
Philippines (LBP) shall pay the purchase price within 30
days after the execution and delivery of the deed of
transfer and surrendering of the Certificate of Title and
other muniments of title
4. In case of rejection or failure to reply, DAR shall conduct
a summary proceeding to determine compensation
5. Upon receipt of payment or deposit of the same, DAR
shall take possession of the land and request the
Register of Deeds (RD) to issue a Transfer Certificate
Title (TCT) in the name of the Republic
6. Any adverse party may bring the matter to the court of
proper jurisdiction for final determination of just
compensation
Incentive for Voluntary Offers for Sale
Landowners, other than banks and other financial institutions,
who voluntarily offer their lands for sale shall be entitled to an
additional five percent (5%) cash payment
Transferability of Awarded Lands
Lands acquired by beneficiaries under this act may not be
sold, transferred or conveyed except through hereditary
succession, or to the government, or the LBP, or to other
qualified beneficiaries for 10 years
Children or spouse of the transferor has a right to repurchase
from the government or LBP within 2 years
Lands not fully paid may be transferred or conveyed, with prior
approval of the DAR, to any heir of the beneficiary, or to any
other beneficiary who will cultivate the land himself

Failing compliance, the land shall be transferred to the LBP and

shall compensate the beneficiary in one lump sum for the
amount the latter has already paid, together with the value of
the improvements made to the land
Land Acquisition of Corporate Farms
Generally: Lands are to distributed to the individual workerbeneficiaries.
In case of infeasibility and unsoundness to divide the land, the
land shall be owned collectively by the workers cooperative or
association which will deal with the corporation or business
association.
Until a new agreement is entered, previous and existing
agreement at the time the Act takes effect between the former
and previous landowner shall be respected by the workers
cooperative or association and the corporation or business
association
Stock Distribution Option
Corporate landowners may voluntarily transfer ownership over
their agricultural landholdings to the Republic of the
Philippines pursuant to Section 20 hereof or to qualified
beneficiaries, under such terms and conditions, consistent with
this Act, as they may agree upon, subject to confirmation by
the DAR. Upon certification by the DAR, corporations owning
agricultural lands may give their qualified beneficiaries the
right to purchase such proportion of the capital stock of the
corporation that the agricultural land, actually devoted to
agricultural activities, bears in relation to the company's total
assets, under such terms and conditions as may be agreed
upon by them. In no case shall the compensation received by
the workers at the time the shares of stocks are distributed be
reduced
Conditions to be Complied with:

a) In order to safeguard the right of beneficiaries who own

shares of stocks to dividends and other financial
benefits, the books of the corporation or association
shall be subject to periodic audit by certified public
accountants chosen by the beneficiaries;
b) Irrespective of the value of their equity in the
corporation or association, the beneficiaries shall be
assured of at least one:(1) representative in the board of
directors, or in a management or executive committee,
if one exists, of the corporation or association; and
c) Any shares acquired by such workers and beneficiaries
shall have the same rights and features as all other
shares
d) Any transfer of shares of stocks by the original
beneficiaries shall be void ab initio unless said
transaction is in favor of a qualified and registered
beneficiary within the same corporation. If within two (2)
years from the approval of this Act, the land or stock
transfer envisioned above is not made or realized or the
plan for such stock distribution approved by the PARC
within the same period, the agricultural land of the
corporate owners or corporation shall be subject to the
compulsory coverage of this Act
Retention, exemption and exclusion
Retention Limits
No person may own or retain, directly or indirectly, any public
or private agricultural land, the size of which shall vary
according to factors governing a viable family-sized farm, such
as commodity produced, terrain, infrastructure, and soil
fertility as determined by the Presidential Agrarian Reform
Council (PARC), but in no case shall the retention limit exceed
five (5) hectares.

Additional three hectares may be awarded to each child,

subject to the following qualifications:
a. That the child is at least fifteen (15) years of age;
and
b. That the child is actually tilling the land or directly
managing the farm.

Exceptions to the Retention limit

a. Landowners whose lands have been covered by PD 27;
and
b. Original homestead grantees or direct compulsory heirs
who still own the original homestead at the time of the
approval of CARL, as long as they continue to cultivate
said homestead.
c. 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
Commercial Farming
Commercial Farms are private agricultural lands devoted to:
a. commercial livestock, poultry and swine raising;
b. aquaculture including salt beds, fishponds and
prawn ponds;
c. fruit farms;

d. orchards, vegetable and cut-flower farms; and

e. cacao, coffee and rubber plantations
Commercial Farms shall be subject to immediate compulsory
acquisition and distribution after 10 years from effectivity of
the act
In cases of new farms, the 10 year period shall begin form the
first year of commercial production and operation, as
determined by DAR
The government shall initiate necessary steps to acquire these
lands, upon payment of just compensation, preferably in favor
of the organized cooperatives or associations, which shall
hereafter manage the said lands for the worker-beneficiaries.
Lands Covered
Government owned lands devoted to or suitable for
agriculture;
Alienable and disposable lands of the public domain
devoted to or suitable for agriculture;
Public domain lands in excess of the specific limits as
determined by Congress; and
Private lands devoted to or suitable for agricultural products
raised or that can be raised thereon.
Exclusions from the Coverage of CARL
1. Under Section 10 , excluded from the coverage of the
CARL are lands actually, directly and exclusively used
for:
a. Parks;
b. Wildlife;
c. Forest reserves;
d. Reforestation;
e. Fish sanctuaries and breeding grounds;
f. Watersheds and mangroves.

2. Private lands actually, directly and exclusively used for

prawn farms and fishponds shall be exempt from the
coverage of this Act: Provided, 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. 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.

3. Likewise, execluded from the coverage the CARL are

lands actually, directly and exclusively used and found
to be necessary for:
a. National defense;
b. School sites and campuses including experimental farm stations operated by public or private
schools for educational purposes;
c. Seeds and seedling research and pilot production
center;
d. Church sites and convents appurtenant thereto;
e. Mosque sites and Islamic centers appurtenant
thereto;
f. Communal burial grounds and cemeteries;
g. Penal colonies and penal farms actually worked
by the inmates; and
h. Government and private research and quarantine
centers.

4. All lands with eighteen percent (18%) slope and over

which are not developed for agriculture are exempted
from the coverage of CARL.
*An eighteen percent slope is not equivalent to an eighteen
degree angle. Eighteen percent slope is obtained by having a
100 meter run and an 18 meter rise.
Just Compensation
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
Mode of Payment
Cash under the following scheme:
i.
For lands above 50 hectares:
25%
ii.
For lands above 24 and up to 50:
30%
iii.
For lands 24 and below :
35%
*
In case of VOS, the landowner shall be entitled to an
additional 5% cash payment.
Balance in any of the following:

i.
ii.
iii.

Shares of stock in government-owned or controlled

corporations, LBP preferred shares, physical assets or
other qualified investments;
Tax credits which can be used against any tax liability;
Land Bank of the Philippines Bonds which shall have the
following features:

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 year; and
Transferability and negotiability
Exemption from Taxes and Fees
Capital Gains
Registration Fees
Other taxes and fees for the conveyance and transfer
thereof
All arrearages in real property taxes, without penalty to
interest, shall be deductible from the compensation to which
the owner is entitled.
All fees and other charges, patents, titles and documents
required for the implementation of CARP
Land distribution to qualified beneficiaries
Who are qualified beneficiaries?
Agricultural lessees and share tenants;
Regular farmworkers;
Seasonal farmworkers;
Other farmworkers;
Actual tillers or occupants of public lands;
Collectives or cooperatives of the above beneficiaries; and
Others directly working on the land
Who are disqualified as beneficiaries?

 Beneficiaries under PD 27 who have culpably sold,

disposed of, or abandoned their land;
Negligence or misuse of the land or any support extended
to them;
Those who owns at least 3 hectares of agricultural land;
and
Those whose lands have been the subject of foreclosure by
the Land Bank of the Philippines.

Awards
Emancipation Patents (Eps)
Issued for lands covered under Operation Land Transfer of PD
27
Certificate of Land Ownership Award (CLOAs)
Issued for private agricultural lands and resettlement areas
covered under RA 6657 (Comprehensive Agrarian Reform Law
of 1988)
Free Patents
Issued for public agricultural lands
Under Section 15 of EO 229 (1987), all alienable and disposable lands of the public domain suitable for agriculture and
outside proclaimed settlements shall be redistributed by the
Department of Environment and Natural Resources (DENR).
Certificates of Stewardship Contracts
Issued for forest areas under the Integrated Social Forestry
Program
Manner of Payment
Paid by the beneficiaries in 30 annual amortizations at 6%
interest per annum

First 3 years after the awards may be reduced by the PARC:

Provided:
First 5 annual payments is not more than 5% of the value of
the annual gross production as established by DAR
Should payment after the 5th year exceed 10% of the value of
the annual gross production, and failure is not with the
beneficiary, the LBP may reduce the interest rate or the
principal obligation
a. 30 annual amortizations (First 3 years may be at
reduced amounts);
b. 6% interest per annum
c. First five annual payments may not be more than 5% of
the value of the annual gross production
Ownership Limitations on the Awarded Lands
May not be sold, transferred or conveyed except through
hereditary succession, or to the government, or to the LBP or
to other qualified beneficiaries for 10 years with rights to
repurchase by the spouse or children of the transferee from
the government or LBP within 2 years
Conversion may only be after 5 years from the award when it
is no longer economically feasible and sound for agricultural
purposes or the locality has become urbanized and the land
will have greater economic value for residential, commercial or
industrial purpose.
Improvement of tenurial relations
Leasehold Tenancy
Tenancy
Agricultural tenancy is the physical possession by a person of
land devoted to agriculture, belonging to or legally possessed
by another for the purpose of production through the labor of
the former and of the members of his immediate farm

household in consideration of which the former agrees to share

the harvest with the latter or to pay a price certain or
ascertainable, either in produce or in money, or in both
Types of Tenancy Relation
Sharehold Tenancy
Leasehold Tenancy
Leasehold vs Sharehold Tenancy
Leasehold
Expenses of production are shouldered by the tenant
Management of the property is solely on the tenant
Only obligation is to pay the rent
Sharehold
Expenses of production are shouldered by both the tenant and
the landowner
Tenant and landowner may co-manage the property
Division of the proceeds of the harvest in proportion to their
contribution

Leasehold vs Civil Law Lease

Leasehold
Limited to agricultural lands
The tenant must personally cultivate the land
For agricultural purposes only
Civil Law Lease
Concerns both rural and urban properties
Tenant need not to personally cultivate the land
May be executed for any lawful purpose
Leasehold Relation
Purpose

To protect and improve the tenurial and economic status of the

farmers in tenanted lands.
Application
Applies to:
Tenanted lands under the retention limit; and
Tenanted lands not yet acquired under the CARL
Production Sharing Plan
Applies only while the land transfer is being processed and
finalized.
Requires individuals or entities owning, or operating an
agricultural land under lease or management contract to adopt
a production sharing with farm workers in the following
manner:
Production Sharing
a. If more than P5M gross sales per year are realized:
i.
3% of the gross sales is to be distributed to
regular and other farm workers, over and above
the compensation they currently receive
ii.
1% of the gross sales is to be distributed to the
managerial, supervisory and technical employees
b. If profits are realized, additional 10% of the net profit
after tax is to be distributed to regular and other
farmworkers
Conversion
The act of changing the current use of a piece of land into
some other use, to wit:
a. For residential, commercial, industrial, and other
non-agricultural purposes;
b. For another type of agricultural activity such as
livestock, poultry, and fishpond the effect of
which is to exempt the land from CARP coverage;
c. For non-agricultural use other than that
previously authorized.

Change of crops to commercial crops or high value crops is

considered as conversion in the use or nature of the land.
Reclassification
The act of specifying how agricultural lands shall be utilized for
non-agricultural uses such as residential, industrial, and
commercial, as embodied in the land use plan, subject to the
requirements and procedures for land use conversion.
Mere reclassification does not automatically allow the
landowner to change its use. Conversion is needed before he
can use the agricultural land for some other purpose.
Who can apply for conversion?
The beneficiary; or
The landowner with respect only to his retained area which
is tenanted.
Conditions for Application for Conversion
When the land is no longer economically fit for agricultural
purposes; or
When the locality has become urbanized and the land will
have a greater economic value for residential, commercial or
industrial purposes.
Lands that Cannot be Converted
Agricultural lands within protected areas under the
National Integrated Protection Areas System (NIPAS),
including watershed, and recharged areas of aquifers, as
determined by the DENR
Irrigated lands delineated by the DA and/or the National
Irrigation Administration (NIA), where water is available to
support rice and other crop production as well as irrigated
lands where water is not available for rice and other crop
production but are within areas programmed for irrigation
facility rehabilitation by the DA and/or the NIA;

All irrigable lands already covered by irrigation projects

with firm funding commitments,as delineated by DA and/or
the NIA;
All agricultural lands with irrigation facilities operated by
private organizations
Mechanisms for program implementation
Functions and Duties
Formulate and implement policies, rules and regulations
necessary to implement the CARP;
Recommend small economy areas;
Schedule the acquisition and distribution of specific
agrarian reform areas; and
Control mechanisms for evaluating the owners declaration
of current fair market value.
Presidential Agrarian Reform Council (PARC)
Composition
a. Chairman: President of the Philippines
b. Vice-Chairman: Secretary of Agrarian Reform
c. Members:
i.
Secretary of Agriculture;
ii.
Secretary of Environment and Natural
Resources;
iii.
Secretary of Budget and Management;
iv.
Secretary of Local Government;
v.
Secretary of Public Works and Highways;
vi.
Secretary of Trade and Industry;
vii.
Secretary of Finance;
viii.
Secretary of Labor and Employment;
ix.
Director-General of National Economic and
Development Authority;
x.
President of Land Bank of the Philippines;
xi.
Administrator
of
National
Irrigation
Authority;

xii.
xiii.

3 representatives of affected landowners to

represent Luzon, Visayas and Mindanao;
and
6 Representatives of agrarian reform
beneficiaries, 2 each from Luzon, Visayas
and Mindanao, provided that one of them
shall be from cultural communities

Executive Committee (EXCOM) of PARC

There shall be an Executive Committee of the PARC which shall
meet and decide on any and all matters in between meetings
of the PARC: Provided, however, That its decision must be
reported in the PARC immediately and not later than the next
meeting.
PARC EXCOM
Composition:
a. Chairman: Secretary of Agrarian Reform
b. Members: designated by the President, taking
into account Article XIII, Section 5 of the
Constitution
PARC Secretariat
A PARC Secretariat is established to provide general support
and coordinative services such as inter-agency linkages,
program and project appraisal and evaluation and general
operations monitoring for the PARC.
Composition
Headed by the Secretary of Agrarian Reform;
Assisted by an Undersecretary and supported by a staff whose
composition shall be determined by the PARC EXCOM
Provincial Agrarian Reform Coordinating Committee
(PARCCOM)
Composition

a. Chairman: Presidential appointee recommended

by the PARC EXCOM;
b. Executive Officer: Provincial Agrarian Reform
Officer;
c. Members:
i.
Representative from the Department of
Agriculture;
ii.
Representative from the DENR;
iii.
Representative from the LBP;
iv.
One representative each from existing
farmers
organizations,
agricultural
cooperatives
and
non-governmental
organizations in the province;
v.
Two representatives from farmers and
farmworker beneficiaries, at least one of
whom shall be a farmer or farmworker
representing the principal crop of the
province; and
vi.
In areas where there are cultural
communities,
there
shall
be
one
representative from them.
Duties and Functions of PARCCOM
Coordinate and monitor the implementation of CARP in the
province;
Provide information on the following:
i.
Provision of the CARP;
ii.
Guidelines issued by the PARC; and
iii.
Progress of the CARP in the province
Manner of Implementation of the Agrarian Reform Program
Province-by-province basis because of the peculiarities and
needs of each province; such as the kinds of crops needed or
suited, land distribution workload, and other factors prevalent
or obtaining in the area.

The PARCOM coordinates and monitors the implementation of

the agrarian reform program in the province.
Barangay Agrarian Reform Committee (BARC)
Composition
Shall be operated on a self-help basis and will be composed of
the following:
a. Representatives of farmer and farmworker
beneficiaries;
b. Representatives of farmer and farmworker nonbeneficiaries;
c. Representatives of agricultural cooperatives;
d. Representatives of other farmer organizations;
e. Representatives of the Barangay Council;
f. Representatives
of
non-governmental
organization (NGOs);
g. Representatives of landowners;
h. Department of Agriculture official assigned to the
area;
i. DENR official assigned to the area;
j. DAR Agrarian Reform Technologist assigned to the
area; and
k. LBP representative.
Functions of the BARC
a. Mediate and conciliate between parties involved in an
agrarian dispute;
b. Assist in the identification of qualified beneficiaries and
landowners within the barangay;
c. Attest to the accuracy of the initial parcellary mapping
of the beneficiary's tillage;
d. Assist qualified beneficiaries in obtaining credit from
lending institutions;
e. Assist n the initial determination of the value of the
land;

f.

Assist the DAR representative in the preparation of

periodic reports on the CARP implementation;
g. Coordinate the delivery of support services to beneficiaries;
h. Participate and give support in the implementation of
CARP; and
i. Perform such other functions as may be assigned by the
PARC and DAR.
FINANCING PROGRAMS
Funding Source
The amount needed to further implement CARP for the period
of 10 years upon approval shall be funded from the Agrarian
Reform Fund created under Sections 20 and 21 of EO 229
Sources of funding or appropriations
a. Proceeds of the sales of
the Privatization and
Management Office (PMO);
b. All receipts from assets recovered and from sales of illgotten wealth recovered through the Presidential
Commission on Good Government;
c. Proceeds of the disposition of the properties of the
Government in foreign countries;
d. Portion of amounts accruing to the Philippines from all
sources of official foreign grants and concessional
financing from all countries, to be used for the specific
purposes of financing production credits, infrastructures,
and other support services required by this Act;
e. Other government funds not otherwise appropriated
Administrative adjudication
RESOLUTION OF AGRARIAN DISPUTES
Department of Agrarian Reform

Quasi- judicial Jurisdiction

To determine and adjudicate agrarian reform matters
Exclusive original jurisdiction over all matter involving
the implementation of agrarian reform, except those
under the exclusive jurisdiction of the DA and the DENR
Appellate jurisdiction over orders and decisions of the
Agrarian Reform Adjudicators
Quasi-judicial Powers of the DAR
Hear and decide cases within its jurisdiction;
Summon witnesses;
Administer oaths;
Take testimony;
Issue subpoena ad testificandum or duces tecum;
Issue writs of execution; and
Punish direct or indirect contempt.
Provincial Agrarian Reform Adjudicators (PARAD)
Generally has primary and exclusive jurisdiction to hear and
decide agrarian disputes.
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 representatives of
persons in negotiating, fixing, maintaining, changing, or
seeking to arrange terms or conditions of such tenurial
arrangements.
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.
Jurisdiction of PARAD

Primary and Exclusive jurisdiction to determine and adjudicate

matters pertaining to:
a. Rights and obligations of persons engaged in the
management, cultivation, and use of all
agricultural lands covered by the CARL and other
related agrarian laws;
b. Preliminary administrative determination of
reasonable and just compensation of lands
acquired under PD 27 and the CARP;
c. Annulment or rescission of lease contracts or
deeds of sale of lands under the administration
and disposition of the DAR or LBP, including
amendment of titles of the agricultural lands
under the administration and disposition of the
DAR, LBP, as well as EPs issued under PD 266,
Homestead
Patents,
Free
Patents,
and
miscellaneous sales patents to settlers in
settlement and re-settlement areas under the
administration and disposition of DAR
d. Ejectment and dispossession of tenants or leaseholders;
e. Sale, alienation, pre-emption, and redemption of
agricultural lands under the coverage of the
CARL, as amended or other agrarian laws;
f. Correction, partition, secondary and subsequent
issuances such as reissuance of lost or destroyed
owners duplicate copy and reconstitution of
Certificates of Land Ownership Award and
Emancipation Patents which are registered with
the LRA;
g. Review of leasehold rentals and fixing of
disturbance compensation;
h. Collection of amortization payments, foreclosure
and similar disputes concerning the functions of
the LBP, and payments for lands awarded under
agrarian laws, including payment for residential,
commercial, industrial lots within the settlement

and resettlement areas under the administration

and disposition of the DAR;
i. Boundary disputes over lands under the
administration and disposition of the DAR and
LBP, which were transferred, distributed, or sold
to tenant-beneficiaries and covered by deeds of
sale, patents, and certificate of title;
j. Cases previously falling under the original and
exclusive jurisdiction of the defunct Court of
Agrarian Relations under Sec 12 of PD 946 except
those cases falling under the proper courts or
other quasi-judicial bodies; and
k. Such other agrarian cases, disputes, matters or
concerns referred to it by the Secretary of the
DAR.
Department of Agrarian Reform Adjudication Board
(DARAB)
Adjudication of cases deals with disputes pertaining to tenancy
relations; valuation of lands acquired by DAR under
compulsory acquisition mode; rights and obligations of
persons, whether natural or juridical, engaged in the
management cultivation and use of all agricultural lands;
ejectment and dispossession of tenants/leaseholders; review
of leasehold rentals; and other similar disputes.
Primary and Exclusive Jurisdiction of DARAB
1. Cases involving rights and obligations of persons,
whether natural or juridical, engaged in the
management cultivation and use of all agricultural
lands;
2. Preliminary administrative determination of just
compensation;
3. Annulment or cancellation of lease contracts or deeds of
sale or their amendments involving lands under the
administration and disposition of the DAR or LBP
4. Ejectment and dispossession of tenants or leaseholders;

5. Sale, alienation, pre-emption, and redemption of

agricultural lands;
6. Correction, partition, cancellation, secondary, and
subsequent issuances of reigstered CLOAs and EPs;
7. Review of leasehold rentals;
8. Collection of amortizations on payments for lands
awarded under PD No. 27, including payment for
residential, commercial and industrial lots within
settlement and resettlement areas;
9. Annulment or rescission of lease contracts and deeds of
sale and the cancellation or amendments of titles of
lands under the administration of DAR, homestead
patents, free patents, miscellaneous sales patents, to
setters in settlement and resettlement areas;
10.Boundary disputes;
11.Determination of title of agricultural lands where the
issue is raised in an agrarian dispute;
12.Cases previously falling under the original and exclusive
jurisdiction of the defunct Court of Agrarian Relations
under Section 12; PD No. 946;
13.Such other agrarian cases, disputes, matters or
concerns referred to it by the Secretary of DAR
Exclusive cognizance and prerogative of cases by the
DAR Secretary:
1. Classification and identification of landholdings for
coverage under the agrarian reform program and the
initial issuance of CLOAs and EPs, including protests or
oppositions thereto and petitions for lifting of such
coverage;
2. Classification,
identification,
inclusion,
exclusion,
qualification, or disqualification of potential/actual
farmer-beneficiaries;
3. Subdivision surveys of land under CARP;
4. Recall, or cancellation of provisional lease rentals,
Certificates of Land Transfers (CLTs) and CARP
Beneficiary Certificates (CBCs) in cases outside the

purview of Presidential Decree (PD) No. 816, including

the issuance, recall, or cancellation of EPs or CLOAs not
yet registered with Register of Deeds;
5. Exercise of the right of retention by the landowner;
6. Application for exemption from coverage under Sec 10
of RA 6657
7. Application for exemption pursuant to DOJ Opinion No.
44 (1990);
8. Exclusion from CARP coverage of agricultural land used
for livestock, swine, and poultry raising;
9. Cases of exemption/exclusion of fish pond and prawn
farms from the coverage of CARP pursuant to RA 7881;
10.Issuance of Certificate of exemption for land subject
Voluntary Officer to Sell (VOS) and Compulsory
Acquisition (CA) found unsuitable for agricultural
purposes ;
11.Application for conversion of agricultural land to
residential, commercial, industrial, or other non
agricultural uses and purposes including protests or
oppositions thereto;
12.Determination of the rights of agrarian reform
beneficiaries to homelots;
13.Disposition of excess area of the tenants/farmerbeneficiarys landholdings;
14.Increase in area of tillage of a tenant/farmer-beneficiary;
15.Conflict of claims in landed estates administered by DAR
and its predecessors
Special Agrarian Court (SAC)
The Supreme Court shall designate at least 1 branch of the
RTC within each province to act as a Special Agrarian Court

Has original and exclusive jurisdiction over:

All petitions for the determination of just compensation
to landowners;
The prosecution of all criminal offenses under the
Article.

Procedure in Agrarian reform cases

Filing of Petition
An action before the Adjudicator shall be initiated by filing
a duly sworn complaint or verified petition with the
Adjudicator in the Province where the land in question is
located.
Payment of prescribed fees in full
May be amended or supplemented any time before a
responsive pleading is served or, in case of a reply, within
5 days after service.
No forum shopping
Joinder of parties over the same issues shall be
implemented if warranted
Parties to the case
Must be initiated and defended in the name of the real
party in interest. All parties having interest in the matter
shall be joined either as the complainant or petitioner.
Heirs of the deceased party may be allowed to substitute
the deceased without appointing an executor or
administrator
Service of Pleadings
The opposing party shall be served with a copy of the
complaint in the manner provided by the Rules. Proof of
service shall be duly recorded in the case.
Summons, notices and copies of resolutions, or orders shall
be served personally as far as practicable, or by registered
mail upon the party himself, his counsel, or duly
authorized representative.

Preliminary Conference
Upon filing and service of the last pleading or receipt of the
BARC certification of non-settlement, the Adjudicator shall
set the case for preliminary conference;

During the preliminary conference and at any stage of the

proceedings, all efforts and steps for amicable settlement
of the case must be exerted by the Board or the
Adjudicator

Proceedings
Proceedings are non-litigious in nature
Adjudicator shall personally conduct the hearing with full
control of the proceedings.
Only one motion for reconsideration is allowed.
Final Orders
Decisions, resolutions or final orders of the Adjudicator
must be in writing, prepared and signe by him and filed
with the Regional or Provincial Clerk of Adjudicator.
The Clerk shall indicate thereon the date of promulgation
thereof
If no appeal or motion for reconsideration is filed within the
reglementary period, the said decision, resolution or final
order shall be entered in the Book of Entries of Decisions
by the Clerk of the Board and the Regional or Provincial
Clerk of Adjudicator, respectively.
Date of finality shall be deemed to be the date of its entry
Appeal
May be taken to the Board from a resolution, decision or final
order of the Adjudicator that completely disposes of the case
by either or both of the parties within a period of 15 days from
the receipt of the said resolution, decision or final order

appealed from or of the denial of the movants motion for

reconsideration
Appeal to the Court of Appeals
Any decision, order, resolution, award or ruling of the
Board on any agrarian dispute shall be brought on appeal
within 15 days from the receipt of a copy thereof, to the
Court of Appeals in accordance with the Rules of Court
Only the Supreme Court can issue a restraining order or
preliminary injunction against the Board or its Adjudicators
Relief from Final Order
Any decision, resolution or final order rendered by the
Adjudicator by means of fraud, accident, mistake and
excusable negligence and such party has no other remedy
available to him in the ordinary course of law, may file a
petition for relief of judgment with the said Adjudicator to set
aside such decision.
Support services
Office of Support Services
Provide general support and coordinative services in the
implementation of the program, particularly in carrying out the
provisions of the following services to farmer beneficiaries and
affected land owners.
General Support and Coordinative Services:
1. Irrigation facilities;
2. Infrastructure development and public work projects in
areas and settlements that come under agrarian reform;
3. Government subsidies for the use of irrigation facilities;
4. Price support and guarantee for all agricultural produce;
5. Extending the necessary credit;
6. Promoting,
developing
and
extending
financial
assistance to small and medium scale industries in
agrarian reform areas;

7. Assigning sufficient numbers of agricultural extension

workers to farmers organization;
8. Undertake research, development and dissemination of
information on agrarian reform, plants and corps best
suited for cultivation and marketing, and low cost and
ecologically sound farm inputs and technologies to
minimize reliance on expensive and imported
agricultural inputs;
9. Development of cooperative management through
intensive training;
10.Assistance in identification of ready markets for
agricultural produce and training in other various
aspects of marketing; and
11.Administration, operation, management and funding of
support service programs and projects including pilot
projects and models related to agrarian reform.
Support Services to Beneficiaries
1. Land surveys and titling;
2. Liberalized terms on credit facilities and production
loans;
3. Extension services by way of planting, cropping,
production and post-harvest technology transfer, as well
as marketing and management assistance and support
to cooperatives and farmers' organizations;
4. Infrastructure such as access trail, mini-dams, public
utilities, marketing and storage facilities; and
5. Research, production and use of organic fertilizers and
other local substances necessary in farming and
cultivation
Support Services to Landowners
1. Investment information, financial and counselling assistance;

2. Facilities, programs and schemes for the conversion or

exchange of bonds issued for payment of the lands
acquired with stocks and bonds issued by the National
Government, the Central Bank and other government
institutions and instrumentalities;
3. Marketing of LBP bonds, as well as promoting the
marketability of said bonds in traditional and nontraditional financial markets and stock exchanges;
4. Other services designed to utilize productively the
proceeds of the sale of such lands for rural industrialization;
5. Incentives granted to a registered enterprise engaged in
a pioneer or preferred area of investment as provided
for in the Omnibus Investment Code or granted by the
PARC, the LBP or other government financial institutions
for those who invests in rural-based industries; and
6. Redemption by the LBP of up to thirty percent (30%) of
the face value of the its bonds for landowners who will
invest the proceeds of the redemption in a BOIregistered company or in any agri-business or agroindustrial enterprise in the region where they have
previously made investments.
Funding
At least twenty-five percent (25%) of all appropriations for
agrarian reform shall be immediately set aside and made
available for support services. In addition, the DAR shall be
authorized to package proposals and receive grants, aid and
other forms of financial assistance from any source.
Land Consolidation
Promotes equal distribution of landholdings, to provide the
needed infrastructure in agriculture, and to conserve soil
fertility and prevent erosion.
Thank you