PD 27 (1972) v.

EO 228
Marcos v. Aquino
Title…
■ PD No. 27 (1972) is fully known as:
Decreeign the Emancipation of Tenants
from the Bondage of Soil, Transferring to
Them the Ownership of the Land They
Till and Providing the Instruments and
Mechanism Therefor
In short:
EMANCIPATION OF TENANTS ACT
■ EO No. 228 is fully known as:
Declaring Full Land Ownership to
Qualified Farmer Beneficiaries Coverd
by Presidential Decree No. 27;
Determining the Value of Remaining
Unvalued Rice and Corn Lands Subject
to PD No. 27; and, Providing for the
Manner of Payment by the Farmer
Beneficiary and Mode of Compensation
to the Land Owner
Promulgation…

■ 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
not.
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:
Value = Average harvest in last 3 normal
crop years immediately preceding the
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
■ EO 228:
Value = (Average gross production1 x 2.5) x
P352 or P313.
(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
land.5
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.
member.
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
government.
To a qualified farmer-beneficiary (in case of
foreclosed farm lots)
Payment… by farmer(s) to
■ PD No. 27:
If in case of default, Farmer’s
Cooperative pays Landowner . Then,
farmer will pay now to the Farmer’s
Cooperative.
If farmer defaulted payment to the
Farmer’s Cooperative, the latter has
right of recourse against the former.
■ EO 228:
Farmer shall pay Land Bank the total cost of
the land plus interest rate of 6% per annum
with 2% interest rebate on amortizations paid
on time within a period of 20 years
If failed to pay 3 annual amortizations (20
equal installments per year, LBP may
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.
End…
Japitan, Berdin, Gumba, Ruiz, Nidoy and Sarsona