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PD 27 (1972) v.

EO 228
Marcos v. Aquino

■ PD No. 27 (1972) is fully known as: ■ EO No. 228 is fully known as:

Decreeign the Emancipation of Tenants Declaring Full Land Ownership to

from the Bondage of Soil, Transferring to Qualified Farmer Beneficiaries Coverd
Them the Ownership of the Land They by Presidential Decree No. 27;
Till and Providing the Instruments and Determining the Value of Remaining
Mechanism Therefor Unvalued Rice and Corn Lands Subject
to PD No. 27; and, Providing for the
Manner of Payment by the Farmer
In short: Beneficiary and Mode of Compensation
to the Land Owner

■ PD No. 27 (1972) on ■ EO No. 228 on

October 21, 1972 July 17, 1987

By and under authority of…

■ PD No. 27 (1972) was enacted by ■ EO 228 was enacted by

Ferdinand Marcos Corazon Aquino

■ Under the authority of: ■ Under the authority of:

PD No. 1081 (September 21, 1972) Section 6, Article XVIII of

1987 Constitution
Primary purpose…

■ PD No. 27 is to implement the ■ EO 228 is the completion of

Operation Land Transfer Operation Land Transfer and
valuation of corn and rice lands under
PD No. 27
Coverage… as to farmer(s)

■ PD No. 27 covers ■ EO 228 covers

Tenant farmers of private agricultural Tenant-farmes under PD No. 27 (now

lands devoted to rice and corn under called herein as Farmer-Beneficiaries)
system of sharecrop or lease tenancy,
whether classified as landed estate or
Coverage… as to the land

■ PD No. 27 covers ■ EO 228 covers

Tenant farmer is owner of a portion Does not say.

constituting a family size farm in a
5 hectare if unirrigated; or,
3 hectares if irrigated.

Land owner can retain an area not more

than 7 hectares if cultivating or will
cultivate now
Compensation… determination of value
■ PD No. 27: ■ EO 228:

Value = Average harvest in last 3 normal Value = (Average gross production1 x 2.5) x
crop years immediately preceding the P352 or P313.
promulgation of this Decree multiplied by
Two and one-half (2 ½) Two and one-half
(2 ½) plus six (6) per centum per annum (1) Average gross production is determined
by Barangay Committee on Land Production;
(2) Government’s support price for one cavan
of 50 kilos of palay on October 21, 1972.
(3) Government’s support price for one cavan
of 50 kilos of corn on October 21, 1972.
Compensation… terms of payment
■ PD No. 27: ■ EO 228:

Fifteen (15) equal annual amortizations 1. Bond payment over ten (10) years: Cash is
within fifteen (15) years. 10% and Bonds for the remaining balance.1, 2,
3, 6

2. Direct payment in cash or in kind.4

3. Other modes of payment as may be
prescribed or approved by the Presidential
Agrarian Reform Council.
4. Lease rentals paid to the landowners by
farmer beneficiaries after October 21, 1972 is
considered as advanced payment for the
Compensation… default of payment
■ PD No. 27: ■ EO 228:

To be paid by Farmer’s Cooperative by Farmers pay to the Land Bank if Landowner

which the defaulting tenant-farmer is a chooses method No. 1.
Titles… to the farmers
■ PD No. 27: ■ EO 228:

Issued only after the tenant-farmer has All qualified farmer-beneficiaries under PD
become a full-fledged member of a duly No. 27 are deemed full owners of the land
recognized farmer’s cooperative. they have acquired.

However, ownership of the land acquired by

farmer-beneficiary may be transferred after
full payment of amoritzations.
Titles… transfer from farmers
■ PD No. 27: ■ EO 228:

Transferrable only to the HEIRS (by way Same with PD 27.

of hereditary succession); or, to the
To a qualified farmer-beneficiary (in case of
foreclosed farm lots)
Payment… by farmer(s) to
■ PD No. 27: ■ EO 228:

If in case of default, Farmer’s Farmer shall pay Land Bank the total cost of
Cooperative pays Landowner . Then, the land plus interest rate of 6% per annum
farmer will pay now to the Farmer’s with 2% interest rebate on amortizations paid
Cooperative. on time within a period of 20 years

If farmer defaulted payment to the If failed to pay 3 annual amortizations (20

Farmer’s Cooperative, the latter has equal installments per year, LBP may
right of recourse against the former. foreclose the lot thirty (30) days after final
notice. Registration of the documents with
Register of Deeds where the lot is located is
deemed foreclosed.
Japitan, Berdin, Gumba, Ruiz, Nidoy and Sarsona