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ILC is a global alliance of civil society and inter governmental

organizations working together to put people at the center of


land governance. The shared goal of ILC’s 200+ members is to
realize land governance for and with people at country level,
responding to the needs and protecting the rights of women,
men and communities who live on and from the land.

International Land Coalition The Regional Coordination Unit of ILC is hosted by KPA
c/o International Fund for Agricultural and can be reached at:
Development (IFAD) Konsorsium Pembaruan Agraria (KPA)
Via Paolo di Dono 44, 00142 Komplek Liga Mas, Jl. Pancoran Indah I No. 1 Block E3
Rome, Italy Pancoran, South Jakarta, 12760 Indonesia
Tel: +390654592445 Tel: +62217984540
Email: info@landcoalition.org Email: asia@landcoalition.info

This publication was made possible with the support of the International Land Coalition (ILC)
through its National Engagement Strategy in the Philippines. The views presented in this
publication do not necessarily reflect the views of ILC.
UPDATES TO AGRARIAN REFORM LAWS, RULES AND REGULATIONS:
A Paralegal Manual

Published by
KAISAHAN tungo sa Kaunlaran ang Kanayunan at Repormang Pansakahan (KAISAHAN, Inc.)
and the People’s Campaign for Agrarian Reform, Inc. (AR Now!)

KAISAHAN, Inc.
38-B Mapagsangguni St. Sikatuna Village,
Quezon City 1101 Philippines

Copyright 2017
Quezon City, Philippines
All rights reserved.

This publication may be freely cited, quoted, reproduced, stored in or introduced into a retrieval system, or
transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise)
provided proper citation of the publishers is made.

ISBN # 978-971-0311-25-5

EDITORIAL TEAM
Author / Editor Atty. Mary Claire Demaisip
Contributors Maricel Almojuela-Tolentino
Kimberly Alvarez
Atty. Janice Co
Gillian Marie Cruz
Anthony Marzan
Atty. Rolly Francis Peoro
Balaod Mindanaw
Center for Agrarian Reform and Rural Development (CARRD)
PAKISAMA
Task Force Mapalad (TFM)
Layout & Design Gillian Marie Cruz
Photos KAISAHAN, Inc.
Updates to Agrarian Reform Laws, Rules and Regulations: A Paralegal Manual

Table of Contents
Contents i
List of Acronyms iii
Foreword viii

Introduction 1

CARP Beyond June 30, 2014 3

Introduction 5
CARP Beyond June 30, 2014 9

DAR Implementing Rules and Regulations 17

Introduction 19
AO No. 07, Series of 2011, as amended 21

Land Covered Under CARPER 22


Reclassification and Foreclosure 25
Schedule of Acquisition and Distribution 26
General Flow of the LAD Process 29
Complusory Acquisition 30
Voluntary Offer to Sell 38
Landowner’s Options 40
Nomination of Preferred Beneficiaries 41
Coverage / Exemption / Exclusion 41
Retention 49
ARB Identification and APFU Signing 51
Land Survey and Joint Field Investigation 63
Land Valuation 66
CLOA Generation 69
Obligations of ARBs 75
Installation of ARBs 76
Powers and Duties 78

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LAD Process: Role of the PNP and AFP 81


in the Installation of ARBs

Introduction 83
Role of the PNP and AFP in the Installation of ARBs 85

Basic Agrarian Reform Concepts 90
and Principles

Tenancy and Leasehold 97

Introduction and Background 99


Tenancy and Leasehold 101

Administrative Orders No. 02, 2014 113


Operating Procedures 120
Administrative Order No. 08, 121
Series of 2014

Untitled Privately Claimed Agricultural Lands (UPALS) 125

Introduction / Background 127


Untitled Privately Claimed Agricultural Lands (UPALs) 129

Socialized Credit for Farmers: Agrarian Production 137


Credit Program (APCP)

Introduction / Background 139


Agrarian Reform Production Credit Program (APCP) 141

References 151

Annex: Administrative Order No. 03, Series of 2017 157

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list of acronyms
A&D Alienable and Disposable
ACP Absolute Community of Property
AdvSP Advanced Survey Plan
AFP Armed Forces of the Philippines
AO Administrative Order
AOC Agrarian Operation Center
AJD Agrarian Justice Delivery
ALI Agrarian Law Implementation
APCP Agrarian Production Credit Program
APFU Application to Purchase and Farmer’s Undertaking
ARB Agrarian Reform Beneficiary
ARBO Agrarian Reform Beneficiary Organization
AR Now! People’s Campaign for Agrarian Reform
ASP Approved Survey Plan
BALAOD BALAOD-Mindanaw Inc.
BARC Barangay Agrarian Reform Council
BFP Bureau of Fire Protection
BIR Bureau of Internal Revenue
BLAD Bureau of Land Acquisition and Distribution
CA Compulsory Acquisition
CARRD Center for Agrarian Reform and Rural Development
CARL Comprehensive Agrarian Reform Law
CARP Comprehensive Agrarian Reform Program

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CARPER Comprehensive Agrarian Reform Program with Extension


and Reforms
CARPO Chief Agrarian Reform Program Officer
CBFMA Community Based-Forest Management Agreement
CDO Cease and Desist Order
CENRO Community Environment and Natural Resources Officer
CF Claim Folder
CHR Commission on Human Rights
CLOA Certificate of Land Ownership Award
CNI Capitalized Net Income
COCAR Congressional Oversight Committee on Agrarian Reform
COD Certificate of Deposit
CPG Conjugal Partnership of Gains
CPVPD Claims Processing, Valuation and Payment Division
CS Comparable Sales
DA Department of Agriculture
DAR Department of Agrarian Reform
DARAB Department of Agrarian Reform Adjudication Board
DARMO Department of Agrarian Reform Municipal Office
DARPO Department of Agrarian Reform Provincial Office
DARRO Department of Agrarian Reform Regional Office
DENR Department of Environment and Natural Resources
DILG Department of Interior And Local Government
DND Department of National Defense
DNYD Distributed But Not Yet Documented
DOJ Department of Justice

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DOLE Department of Labor and Employment


DOST Department of Science and Technology
DSWD Department of Social Welfare and Development
EO Executive Order
EP Emancipation Patent
FIR Field Investigation Report
FO Farmers Organization
FWB Farm Worker Beneficiary
GE Geodetic Engineer
JAO Joint Administrative Order
JFI Joint Field Investigation
KAISAHAN KAISAHAN tungo sa Kaunlaran ng Kanayunan at
Repormang Pansakahan
LAD Land Acquisition and Distribution
LBP Land Bank of the Philippines
LDF Land Distribution Folder
LDIS Land Distribution Information Schedule
LGU Local Government Unit
LMS Land Management Sector
LRA Land Registration Authority
LV Land Value
LVW Land Valuation Worksheet
MARO Municipal Agrarian Reform Officer
MARPO Municipal Agrarian Reform Program Officer
MC Memorandum Circular
MOA Memorandum of Agreement

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MOV Memorandum of Valuation


MV Market Value
NCIP National Commission on Indigenous People
NLVA Notice of Land Valuation and Acquisition
NOC Notice of Coverage
OCT Original Certificate of Title
OLT Operation Land Transfer
OP Office of the President
OSEC Office of the Secretary
PAKISAMA Pambansang Kilusan ng mga Samahang Magsasaka
PAL Private Agricultural Lands
PAO Public Attorney’s Office
PARAD Provincial Agrarian Reform Adjudicator
PARC Presidential Agrarian Reform Council
PARCCOM Provincial Agrarian Reform Coordinating Committee
PARO Provincial Agrarian Reform Officer
PARPO Provincial Agrarian Reform Program Officer
PCA Philippine Coconut Authority
PCGG Presidential Commission on Good Government
PD Presidential Decree
PDG Police Director General
PENRO Provincial Environment and Natural Resources Officer
PESANTEch Paralegal Education Skills Advancement and Networking
Technology
PLR Provisional Lease Rental
PNP Philippine National Police

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PO People’s Organization
POC Police Commissioned Officer
PPBDD Provincial Program Beneficiaries Development Division
PPU Pre-Processing Unit
PSS Perimeter Segregation Survey
RA Republic Act
RARAD Regional Agrarian Reform Adjudicator
RD Regional Director
RLO Registered Land Owner
ROD Register of Deeds
SALIGAN Sentro ng Alternatibong Lingap Panlegal
SC Supreme Court
SS Support Services
TCT Transfer Certificate of Title
TFM Task Force Mapalad
TRO Temporary Restraining Order
UPALs Untitled Private Agricultural Lands
VLT Voluntary Land Transfer
VOS Voluntary Offer to Sell

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foreword

The International Land Coalition (ILC) started the National Engagement


Strategy (NES) as a unified approach to bring members at the country
level to work on common agenda. Having a long history of involvement
on land issues in the country, CSO members of ILC in the Philippines have
agreed to pursue the following goal and objectives of NES in pushing for
policy reforms to enhance the poor’s access to land:

• pursue reforms and protect the gains of past and current asset
reform policies and programs;

• address inter-sectoral concerns on land and future legal


frameworks;

• enhance the basic sectors’ capacities to demand and defend


their rights and natural resources; and,

• develop a comprehensive and coherent land data system.

As part of enhancing the basic sectors’ capacities to demand and defend


their rights and natural resources, NES Philippines work towards the
strengthening of the paralegal work of the members to aide in fast-
tracking of resolution of land claims. While a number of progressive
legislations and policies on resource rights have been passed, the need
to educate the farmers on their rights remain a challenge. At the same
time, with the new provisions as well as the outstanding issues in relation
to the implementation of the Comprehensive Agrarian Reform Program
with Extension Reforms/CARPER (i.e., completion of land acquisition
and distribution), and taking into consideration new strategies used by
paralegals (i.e., use of information and communication technologies),
the continuing learning and sharing of paralegal practices of members
contribute to the process of empowering farmers in asserting their rights
to land.

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It is in this context that the People’s Campaign for Agrarian Reform (AR
Now!), Center for Agrarian Reform and Rural Development (CARRD),
Pambansang Kilusan ng mga Samahang Magsasaka (PAKISAMA) and
Task Force Mapalad (TFM) organized onsite training courses among
their partner communities, conducted paralegal cliniquing sessions and
convened a national inter-organizational sharing to jointly reflect on
issues and draw lessons on practices that worked. Towards this end, the
summative experiences of the members are incorporated in this updated
version of paralegal manual supported by ILC in the previous NES.

We hope that the readers of this manual will find it useful for their
advocacies.

Nathaniel Don E. Marquez


Asian NGO Coalition for Agrarian Reform and Rural Development
(ANGOC)
Convenor of ILC NES in the Philippines

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Introduction

T he “Repormang Pang-Agraryo at Kaunlarang Pangkanayunan:


Manwal ng Paralegal” is a previously published guidebook aimed at
aiding farmer paralegals in learning and understanding Agrarian Reform.
The publication of the paralegal manual was initiated by alternative
legal resource institutions [BALAOD-Mindanaw Inc., KAISAHAN tungo
sa Kaunlaran ng Kanayunan at Repormang Pansakahan and Sentro ng
Alternatibong Lingap Panlegal (SALIGAN)] that are working for the
legal empowerment of the marginalized sectors through the Paralegal
Education Skills Advancement and Networking Technology (PESANTEch).
The purpose of the PESANTEch program was to develop the legal
capability of farmers and their organizations in order to facilitate agrarian
reform implementation through paralegal formation.

In 2011, members of the People’s Campaign for Agrarian Reform


network (AR Now!) collaborated on the crafting and publication of the
“Repormang Pang- Agraryo at Kaunlarang Pangkanayunan: Manwal ng
Paralegal, Ikaapat na Edisyon.” The 4th Edition Paralegal Manual was
drafted to serve as a handbook for farmer paralegals in their on-going
study of the concept, laws and rules on Agrarian Reform, to guide them
in their continuing struggle in claiming and protecting their land rights
under agrarian reform.

When the Comprehensive Agrarian Reform Program with Extension


and Reforms (CARPER) was passed in 2009, the Department of Agrarian
Reform (DAR) issued its implementing rules and regulations. Since then
however, these guidelines were amended and/or changed. In addition,
various policy issuances were also made by the DAR to secure the rights
of the farmers amidst the challenges they are confronted with in the
implementation of Agrarian Reform laws.

After the onslought of Typhoon Yolanda in 2013, DAR issued policy


guidelines determining the rights and obligations of both farmers and

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landowners in leasehold areas affected by calamities and pest infestation.


This is in response to the growing threat of the ill-effects of climate change
to farmers, making them more vulnerable to exploitation and abuse.

In 2014, a policy issuance on the disposition of Untitled Private Agricultural


Lands (UPALs) was issued by DAR and Department of Environment and
Natural Resources (DENR). In the past, coverage and distribution of these
lands were sidelined because of the uncertainty on the legal character
of UPALs. The promulgation of these guidelines is a relevant step in
clarifying the process of the Comprehensice Agrarian Reform Program
(CARP) implementation with regard to UPALs.

This publication will provide updates on the rules and regulation related
to the implementation of agrarian reform in the Philippines.

Also included in this publication are guidelines related to the role of the
Philippine National Police (PNP) in the installation of agrarian reform
beneficiaries (ARBs) in their awarded lands, as well as information related
to accessing financial assistance the Agrarian Production Credit Program
(APCP) under the joint credit and capacity development program of the
Department of Agriculture (DA), DAR and Land Bank of the Philippines
(LBP).

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CARP beyond
JUNE 30, 2014
carp beyond june 30, 2014

Introduction

O n June 15, 1988, Republic Act 6657 or the Comprehensive Agrarian


Reform Law (CARL) was enacted. This was considered as the
centerpiece legislation of President Corazon Aquino’s administration
in pursuing social justice. The Constitution lays the ground for the
institutionalization of the CARP. Section 4, Article XIII of the 1987
Constitution provides that:

“Section 4. The State shall, by law, undertake an agrarian


reform program founded on the right of farmers and
regular farmworkers who are landless, to own directly
or collectively the lands they till or, in the case of other
farmworkers, to receive a just share of the fruits thereof.
To this end, the State shall encourage and undertake
the just distribution of all agricultural lands, subject to
such priorities and reasonable retention limits as the
Congress may prescribe, taking into account ecological,
developmental, or equity considerations, and subject
to the payment of just compensation. In determining
retention limits, the State shall respect the right of small
landowners. The State shall further provide incentives for
voluntary land-sharing.”

The CARP implementation has three (3) components –Land Acquisition


and Distribution (LAD), Agrarian Justice Delivery (AJD), and Provision
of Support Services (SS) to farmer beneficiaries. Unlike its predecessor,
Presidential Decree 271 (PD 27), the CARL expanded the coverage of
lands to all agricultural lands regardless of tenurial arrangements and
crops planted therein.2 In implementing the CARP, land distribution is

1  Decreeing the Emancipation of Tenants from the Bondage of the Soil, Transferring to Them the
Ownership of the land They Till and Providing the Instruments and Mechanism Thereof
2  Section 4, R.A. 6657, as amended by R.A. 9700.

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complemented with support services delivery (infrastructure facilities,


capacity building, credit and/or loan assistance).3 Under the CARL, land
distribution of all lands covered by the program shall be completed the
CARP will be implemented within ten (10) years from its effectivity.4 In
1998, R.A. 85325 was enacted, providing additional funding for CARP in
the next 10 years.

In 2009, R.A. 9700 or the CARPER was passed into law and amended certain
provisions of the CARL. It infused new funding for CARP implementation
and introduced reforms to the existing law, such as6:

A. Creation of a Joint Congressional Oversight Committee


on Agrarian Reform (COCAR) composed of members
from the Senate and House of Representatives. The task
of the COCAR is to monitor the CARP during its five (5)
year implementation.

B. Stating a clear policy on food security and strict regulation


on conversion of agricultural lands for uses other than
food production.

C. Protection of irrigable and irrigated agricultural lands


from conversion to non-agricultural uses.

D. Recognition of the equal rights of rural women to become


agrarian reform beneficiaries of their own land and to
access gender responsive support services.

E. Disallowance of the Voluntary Land Transfer (VLT) scheme


for land acquisition.

3  Securing the Right to Land: An Overview on Access to Land in Asia, 2nd Edition, ANGOC,
2012, p.191.
4  Section 5, R.A. 6657.
5  An Act Strengthening Further the Comprehensive Agrarian Reform Program (CARP),
by Providing Augmentation Fund Therefor, Amending for the Purpose Section 63 of Re
public Act No. 6657, Otherwise Known As the CARP Law of 1988
6  Securing the Right to Land: An Overview on Access to Land in Asia, 2nd Edition,
ANGOC, 2012, p.192.

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F. Recognition and guarantee of the indefeasibility of


the Certificate of Land Ownership Award (CLOA),
Emancipation Patents (EP) and other titles issued under
any agrarian reform program one (1) year after its
registration.

G. Granting of usufructuary rights to agrarian reform


beneficiaries (ARBs) upon DAR’s possession of the
agricultural lands covered under CARP.

H. Conferring of exclusive and original jurisdiction on the


DAR Secretary of all cases involving the cancellation of
registered EPs, CLOAs, and other titles issued under any
agrarian reform program.

Five (5) years after the enactment of CARPER, the LAD process of
the CARP remains to be completed. In its 2015 accomplishment
report, the DAR stated that it has distributed a total of 4.724 million
hectares to 2.790 million ARBs nationwide. Unfortunately, more
than 600,000 hectares remain undistributed today excluding
those landholdings that have yet to be issued Notices of Coverage
(NOCs).7

At present, there is a policy gap in the implementation of CARP.


Section 7 of R.A. 6657 as amended by RA 9700 states that:

“SEC. 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.

XXX XXX XXX

7  What now For Agrarian Reform Implementation in the Duterte Administration?, Policy
Brief, ILC-NES in the Philippines, August 2017.

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Further, Section 30 of R.A. 9700 provides:

“Section 30. Resolution of Case. - Any case and/or


proceeding involving the implementation of the provisions
of Republic Act No. 6657, as amended, which may remain
pending on June 30, 2014 shall be allowed to proceed to
its finality and be executed even beyond such date.”

While the above quoted provisions mention a deadline in the


implementation of LAD, vast tracts of agricultural lands remain to be
covered and distributed to ARBs. Questions arise as to the effectivity of
the program and how pending cases and issues will proceed in the given
scenario.

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CARP beyond
june 30, 2014
Did the CARPER law expire last June 30, 2014?
No. T h e CARPER law did not expire last June 30, 2014. R.A. 6657 as
amended by R.A.9700 remains effective even beyond the said date.

• The CARP as amended, has a continuing mandate to cover


and distribute all agricultural lands to landless farmers and
farmworkers. This is stated in Section 4, Article XIII of the
Philippine Constitution.8 This is also in accordance with the
State policy to “promote comprehensive rural development and
agrarian reform.”9

• As mentioned, agrarian reform is a Constitutional mandate. As


such, it cannot be considered to have ended until the objective
of the CARP, which is the distribution of all agricultural lands to
the landless, is attained.10

• Considered as the centerpiece program of the late President


Corazon Aquino’s administration, the CARP was enacted to give
life to the social justice mandate of the Constitution, which is
the very heart of this fundamental law of the land.

8  Section 4, Article XIII provides:


Section 4. The State shall, by law, undertake an agrarian reform program founded on
the right of farmers and regular farmworkers who are landless, to own directly or col-
lectively the lands they till or, in the case of other farmworkers, to receive a just
share of the fruits thereof. To this end, the State shall encourage and undertake the just
distribution of all agricultural lands, subject to such priorities and reasonable retention
limits as the Congress may prescribe, taking into account ecological, developmental, or
equity considerations, and subject to the payment of just compensation. In determin-
ing retention limits, the State shall respect the right of small landowners. The State shall
further provide incentives for voluntary land-sharing.
9  Section 21, Article II of the Philippine Constitution.
10  Queries on CARPER Beyond 2014, Legal Notes of Rep. Kaka Bag-ao, 2012.

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• It must be noted that the agrarian reform program as embodied


in the CARP/CARPER law has three (3) components: Land
Acquisition and Distribution, Agrarian Justice Delivery and
Support Services. The agrarian reform program will reach
completion only when all components have been achieved.
Only then can it be said that the CARP has fulfilled its mandate.

• At present, with more than 600,000 hectares of agricultural


land still to be covered and countless agrarian related disputes
yet to be resolved, the objectives of agrarian reform cannot be
considered as completed and accomplished.

• R.A. 6657 as amended by R.A. 9700 remains in force as there are


no law or issuance repealing the same.

• Only the issuance of Notices of Coverage (NOCs) was


discontinued starting July 1, 2014. Other components of the
LAD are still in effect.

• Other components of the LAD proceed

What does June 30, 2014 signify?

June 30, 2014 is the directory deadline set by the law to complete
the land acquisition and distribution of the CARP. This is NOT the
expiration date of the program.

• Although June 30, 2014 is mentioned in the different provisions of


the law, it does not mean that the LAD component of the CARPER
will be implemented only up to this date.

• Periods prescribed by law are directory in nature. In mentioning


June 30, 2014, the law prescribed its target date for the
completion of the LAD process. It emphasizes the urgency of the
implementation of the program. DOJ Opinion No 59, Series of
201311 is instructive in this regard. It states:

11  Dated July 9, 2013.

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“It has been held that the difference between


a mandatory and a directory provision is often
determined on grounds of expediency. And
where a provision embodies a rule of procedure
rather than one of substance, the provision
as to time will be regarded as directory only
notwithstanding the mandatory nature of the
language used.12

An examination of Section 7 of R.A. No. 6657,


as amended, would disclose that its provision
is more procedural than substantive in nature
and its evident objective is expediency. It
prescribes a schedule of implementation to
dramatize the urgency of the CARP which must
be implemented immediately and completed,
ideally within the time frame prescribed by law.

It is true that Section 7 of R.A. No. 6657, as


amended, uses the word‘’shall,”which is generally
interpreted to be mandatory in character.13
However, it is well-recognized that the ordinary
acceptation of “shall” and “may” as being
obligatory and permissive, respectively, is not an
absolute and inflexible criterion.14 Provisions as
to time will generally be construed as directory
if there are no negative words restraining the
doing of the act afterwards.15”

12  DOJ Opinion No. 9, Series of 1997 and No. 59, Series of 2013, citing Marcelino vs.
Cruz, Jr., 121 SCRA 51.
13  DOJ Opinion No. 9, Series of 1997 and No. 59, Series of 2013, citing Giao vs. Figueroa,
94 Phil 1022.
14  DOJ Opinion No. 9, Series of 1997 and No. 59, Series of 2013, citing Vda. De Mesa
vs. Mencias, 18 SCRA 533
15  DOJ Opinion 1997 and No. 9, Series of 59, Series of 2013, citing Phil. Association of Free
Labor Union vs. Sec of Labor, 77 SCRA 40.

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What is the implication of the DAR’s inability to issue


NOCs after June 30, 2014?

• On June 30, 2014, the authority of the DAR to issue NOCs to


private agricultural lands covered under agrarian reform has
expired. This means that DAR, temporarily, cannot proceed
with the land acquisition and distribution of agricultural
lands without NOC as of 30 June 2014, until an executive/
legislative, and/or judicial action enables DAR to issue new
NOCs.

• The issuance of an NOC starts the process of LAD to


transfer the land ownership to qualified ARBs. It informs the
landowner that his/her property is being acquired under the
agrarian reform program as well as the remedies available to
him/her under the law. Once the NOCs  have been served/
issued to landowners, DAR can initiate the LAD process.16

• If DAR is unable to issue NOCs, it cannot acquire and distribute


the more than 600,000 hectares of private agricultural
land still to be covered and distributed to ARBs. Qualified
beneficiaries who pin their hopes on having better lives
through cultivating and owning their lands are deprived of
their right to a decent living.

16  http://www.dar.gov.ph/notice-of-coverage, August 31,2017.

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What are emerging concerns17 in DAR’s lack of


mandate to issue NOCs?

• Increasing Erroneous Coverage

The DAR in Negros Occidental cites the non-passage of the NOC


bill18 as a major factor for the delay and recalibration of their
targets. DAR officials say many NOCs issued before the June
30, 2014 deadline were defective. After further validation, DAR
discovered that there are errors in the technical descriptions
of the published NOCs. The discrepancies vary from the title
numbers, location of the property and name of the registered
landowners.

Among the reasons cited were old titles transferred to smaller


landholdings and named after heirs or corporations; some NOCs
not properly served to landowners prior to publication; some
MAROs had no official documentation of the landowners’ refusal
to accept NOCs before publication.

Upon determination that erroneous NOCs have been issued,


the DAR halts the process of the LAD. In most instances, their
remedy is to cure the defect by issuing new NOCs. This becomes
problematic since NOCs can no longer be issued by DAR, after
June 30, 2014.

In Negros Occidental, out of 10,000 hectares covered by


KAISAHAN19 assisted areas, ten per cent (10%), or 1,000
hectares were identified to have been issued with defective

17  What now For Agrarian Reform Implementation in the Duterte Administration?, Policy
Brief, ILC-NES in the Philippines, August 2017.
18  The NOC bill is a legislative proposal to the 17thCongress, which seeks to amend RA
9700. It allows the DAR to issue NOCs to CARP covered landholdings. In this bill DAR’s
mandate to issue NOCs shall continue until completion of the CARP. In the House of
Representatives, Reps. Kaka Bag-ao, Tom Villarin and Teddy Bguilat are the principal
sponsors of the NOC Bill. In the Senate, Senators, Rissa Hontiveros and Gringo Honasan
are the proponents of the said bill.
19  Based on KAISAHAN database as of December 2016.

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NOCs. Coverage and distribution of these lands are indefinitely


suspended, until DAR recovers its mandate to issue NOCs.

In areas where coverage cannot proceed, owners of landholdings


with defective NOCs circumvent the CARP by converting the
land to non-agricultural uses. Other landowners subdivide
the property and transfer the same to the heirs or sell them to
interested buyers.

While DAR waits for either an executive or legislative action


that will allow the agency to proceed with NOC issuance and
complete the LAD process, the lands subject to CARP coverage
are slowly being taken from the farmers.

• “Chop-chop” of titles to justify erroneous NOCs

Some landowners or their heirs resort to subdividing the original


lands covered by CARP and have them titled into smaller parcels
under the name of the heirs. Hence, the NOC issued for the
original title will now be contested by the owners of the smaller
parcels of land. This strategy has been more commonly referred
to as ‘chop-chop’ titles.

What happens to the coverage and distribution


of landholdings that have been issued with NOCs
before June 30, 2014 but have not yet been completed
before the said date?

• Once the NOC is issued on a landholding, all the succeeding


processes leading to the transfer of ownership of the CARP
covered land to qualified beneficiaries shall continue until its
completion, even beyond June 30, 2014.

• Section 30 of RA 9700 provides that:

“Section 30. Resolution of Case. - Any case and/


or proceeding involving the implementation of the
provisions of Republic Act No. 6657, as amended, which

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carp beyond june 30, 2014

may remain pending on June 30, 2014 shall be allowed


to proceed to its finality and be executed even beyond
such date.”

• It is clearly stated in Section 30 that “proceedings involving


the implementation of the provisions of RA 6657, as amended,
which may remain pending on June 30, 2014 shall be allowed
to proceed to its finality and executed even beyond such date.”20
This covers the entire LAD process under the CARP.

What happens to cases pending in the DAR after


June 30, 2014?

• As enunciated in the above-quoted provision, any case involving


the implementation of CARP which may remain pending on June
30, 2014 shall be allowed to proceed until its finality. Thus, once
cases have been filed related to or involving the implementation
of the provisions of R.A. 6657, these will proceed until they reach
finality.

• The legislative intent of Congress in formulating Section 30 of


RA 9700 is to have all pending cases or proceedings involving
the implementation of CARPER as of June 30, 2014, to proceed
until finality even beyond the said date.21 Congress thus,
prevented situations wherein cases pending as of June 30, 2014
are abandoned without reaching their conclusion.22

20  DOJ Opinion No. 59, Series of 2013.


21  DOJ Opinion No. 60, Series of 2013.
22  DOJ Opinion No. 60, Series of 2013.

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What happens to the other components of the CARP


(Agrarian Justice Delivery and Provision of Support
Services) after June 30, 2014?

• The Agrarian Justice Delivery and Support Services are essential


components of the CARP and shall continue after June 30, 2014.

• “The implementation of the CARP, being both eminent domain


and social justice legislation, would inevitably give birth to some
controversies between its participants. And so, the resolution
of these controversies and the delivery of free legal assistance
to the CARP participants are essential in order to achieve the
objectives of the CARP.23“

• “The support services delivery function was meant to exist for as


long as the planning and implementation of land acquisitions
and redistributions have not yet been completed. The function
of the SSO24 co-exist with the implementation of the actual
acquisition and redistribution process. Too, it would serve no
practical purpose if the support services delivery function of
the DAR would terminate by June 30, 2014 while CARP has not
yet been fully implemented. A more logical interpretation then
would be that the support services delivery function of the
DAR will carry on with its mandate until it has fully reached its
objective, even if it would go beyond June 30, 2014. ”25

23  DOJ Opinion No. 60, Series of 2013.


24  Support Services Office of the DAR
25  DOJ Opinion No. 60, Series of 2013.

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DAR Implementing
Rules and
Regulations
Updates to Agrarian Reform Laws, Rules and Regulations: A Paralegal Manual

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Introduction

R epublic Act 9700 which amended RA 6657 provides for, among others,
the continuing acquisition and distribution of agricultural lands
covered under the CARP. Subsequently, DAR issued AO 2 Series of 2009
to govern the rules and procedure of the LAD process.

In 2011, the DAR issued AO 7 Series of 2011, which amended AO 2 Series


of 2009. It aimed to streamline the process and strengthened the due
process requirement for the CARP coverage. This was further amended
by AO 3 Series of 2012.26

Since then, various AOs have been issued amending the specific
provisions of AO 7 Series of 2011 and AO 3 Series of 2012, in response
to the continuing challenges in the implementation of the LAD. Notable
of these amendments is AO 5 Series of 2017, which among others,
allowed the LAD process to continue until the installation of farmers for
landholdings with pending protests on the coverage and/or petitions
for exclusion or exemption. This amended Section 29 of AO 7 Series of
2011 which permitted the continuance of the LAD process only until the
issuance of the Memorandum of Valuation (MOV).

The LAD process is an important component of the CARP. In assuming


its responsibility to complete the CARP, the DAR is called to fulfill its duty
consistent with the precepts of social justice, equity and the common
good.

26  Prefatory statement, AO 3, Series of 2012.

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ao NO. 07, SERIES OF 2011,


AS AMended
Revised Rules and Procedures Governing the
Acquisition and Distribution of Private Agricultural
Lands under Republic Act No. 6657, As Amended

What is Administrative Order No. 07, Series of 2011


(AO 7) all about?

AO 7, as amended, provides the rules in the acquisition and distribution


of private agricultural lands enumerated in Section 4 of Republic Act
(R.A.) 6657, as amended by R.A. 9700 (also known as CARPER).

Is AO 7 applicable even to landholdings already with


Notice of Coverage (NOC) at the time of its issuance?

Yes. AO 7 is the applicable rule, provided that the validity of any and all
acts undertaken are governed by the rules prevailing at the time the said
acts were made.

How are private agricultural lands acquired under


AO 7?

The modes of acquisition under AO 7 are:


A. Compulsory Acquisition (CA); and
B. Voluntary Offer to Sell (VOS).

What happened to the Voluntary Land Transfer (VLT)


mode of acquisition?

The VLT mode was removed under CARPER. Only those landholdings
submitted for VLT on or before June 30, 2009 can be distributed using
the VLT mode.

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Updates to Agrarian Reform Laws, Rules and Regulations: A Paralegal Manual

CA
CA
VOS xvlt

LANDS COVERED UNDER CARPER


How will I know whether a particular landholding
will be covered by DAR?

DAR prepared a list of agricultural lands to be acquired and distributed


from July 01, 2009 to June 30, 2014. This is contained in the CARPER LAD
BALANCE (LAD Balance) that was officially adopted by the Presidential
Agrarian Reform Council (PARC) Executive Committee in 2010.

Does this mean that private agricultural lands that


were excluded from the LAD Balance will no longer
be covered by DAR?

No. DAR recognizes the need to update the approved LAD Balance in view
of perceived addition and deduction of landholdings. Related thereto, it
came up with a set of guidelines in the use, treatment and updating of
the said LAD Balance contained in DAR Memorandum Circular 08, Series
of 2010.

If I know a particular landholding that must be


included in the LAD Balance, what are the necessary
steps for its inclusion?

Landholdings may be included in the LAD Balance upon the issuance of


the following:

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A. Memorandum to the DAR Provincial Office (DARPO) by the


Municipal Agrarian Reform Officer (MARO) requesting for an
addition of landholdings;
B. Recommendation from the Provincial Agrarian Reform Officer
(PARO);
C. Resolution by the Provincial Agrarian Reform Coordinating
Committee (PARCCOM);
D. Resolution by the LAD Balance Technical Review Committee
recommending its inclusion; and
E. Approval by the PARC Executive Committee.

EXCLUSION

What are excluded from CARPER coverage?

Excluded from the coverage are the following:

A. All undeveloped lands with eighteen percent (18%) slope and


over;
B. All lands duly classified by the proper local government unit
(LGU) as commercial, industrial or residential as of June 15, 1988;
C. All ancestral lands/domains that may be identified in accordance
with the rules that may be jointly issued by the DAR, DENR, Land
Registration Authority (LRA), and the National Commission on
Indigenous People (NCIP);
D. Retention areas granted to landowners who exercised their
retention rights; and
E. All agricultural landholdings of a landowner with an aggregate
size of five (5) hectares or less.

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Updates to Agrarian Reform Laws, Rules and Regulations: A Paralegal Manual

EXEMPTION

What are exempted from CARPER coverage?

The following are exempted:

A. Parks;
B. Wildlife;
C. Forest reserves;
D. Reforestation;
E. Fish sanctuaries and breeding grounds;
F. Watersheds;
G. Mangroves;
H. National defense;
I. School sites and campuses, including experimental farm
stations operated by public or private schools for educational
purposes;
J. Seeds and seedlings research and pilot production centers;
K. Church sites and Islamic centers appurtenant thereto;
L. Communal burial grounds and cemeteries;
M. Penal colonies and penal farms actually worked by the inmates;
N. Government and private research and quarantine centers;
O. Fish ponds and prawn farms; and
P. Livestock, poultry, and swine-raising since June 15, 1988.

May previously exempted agricultural lands still be


covered?

Yes. If an agricultural land is discovered not to be actually, directly,


and exclusively used for the purpose it was exempted, the PARO shall
immediately issue an NOC for the subject landholding or portions thereof.

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CONVERSION

Can DAR cover landholdings with pending


application for land use conversion?

Yes. Absent any final order granting an application for conversion, no


act or attempt directed to changing the use of the land shall affect the
coverage.

How about those with conversion orders?

Generally, DAR will not cover those landholdings with conversion orders.
However, if the following circumstances occur due to the fault of the
applicant, the same will be covered:

A. Failure to fully implement the conversion plan within five (5)


years from the issuance of the DAR conversion order; or
B. Violation of any of the conditions of the conversion order.

RECLASSIFICATION & FORECLOSURE

Can agricultural lands reclassified to non-


agricultural uses before June 15, 1988 still be covered
by DAR?

Yes, if the LGU subsequently reclassified the land as agricultural. Any


exemption order therein shall be reviewed by the Regional Director (RD)
to determine whether the subject landholding is agricultural in land
use, and if found as such, the exemption order shall be revoked and the
corresponding NOC be issued.

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Updates to Agrarian Reform Laws, Rules and Regulations: A Paralegal Manual

What will happen to foreclosed agricultural lands?

The DAR shall take possession of awarded agricultural lands which where
foreclosed for failure to pay the amortization for three (3) aggregate years
and were not redeemed within the two (2) year redemption period. The
LBP shall certify the land’s availability for reallocation and the DAR shall
identify new agrarian reform beneficiaries (ARBs).

SCHEDULE OF ACQUISITION
AND DISTRIBUTION
Will DAR cover landholdings identified in the LAD
Balance all at the same time?

No. A schedule of acquisition is provided by CARPER, to wit:

A. From July 1, 2009 to June 30, 2012

Phase 1

a. All single private agricultural lands above 50 hectares,


with or without NOCs
b. All large aggregate private agricultural lands with a
total area greater than 50 hectares with NOC as of Dec.
10, 2008
c. Following lands, regardless of size:
i. Presidential Decree 27 (“PD 27”) lands (rice and corn)
ii. All idle or abandoned agricultural lands
iii. All lands offered under VOS
iv. All lands covered by VLT submitted on or before
June 30, 2009
v. All lands foreclosed by government financial
Institutions
vi. All lands acquired by Presidential Commission on
Good Government (PCGG)
vii. All other government owned alienable and
disposable (A&D) agricultural lands

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B. From July 1, 2012 to June 30, 2013

Phase 2-A

a. All remaining large, single, private agricultural lands


with an area of 24 to 50 hectares, with or without NOC
b. All private agricultural lands with an aggregate area of
24 to 50 hectares with NOC as of Dec. 10, 2008
c. All agricultural lands provided in the preceding phase
yet to be completed

C. From July 1, 2013 to June 30, 2014

Phase 2-B

a. All remaining private agricultural lands with an


aggregate area in excess of 24 hectares, with or without
NOC
b. All agricultural lands provided in the preceding phases
yet to be completed

Phase 3-A

a. All private agricultural lands with an aggregate area of


above 10 hectares up to 24 hectares with respect to the
excess of 10 hectares
b. All agricultural lands provided in the preceding phases
yet to be completed

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Under what phase will co-owned lands be included?

Landholdings that are still co-owned due to non-settlement of the estate


of a landowner who died on or after June 15, 1988, the phase shall be
based on the aggregate size of all his landholdings.

If it is co-owned due to some other reason, insofar it became co-owned


before June 15, 1988, the rule is as follows:

A. If the aggregate size of all the landholdings of each co-owner


belongs to the same phase, the phase shall be based on
aggregate size of all the landholdings of one of the co-owners

B. If the aggregate size of all the landholdings of each co-owner


belongs to different phases, the co-owners shall be treated as a
single LO for the determination of the phase for the landholding
that will be covered.

Can DAR cover landholdings ahead of their


schedule?

Yes. It can be covered ahead of schedule if declared by the PARC or the


PARC Executive Committee, upon the recommendation of the PARCCOM,
as a Priority Land Reform Area and upon completion of the LAD targets of
the province where it is situated.

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Prior to acquiring any private agricultural land, it is the responsibility


of the DAR to identify the owners of the subject landholding and to
ascertain whether the land is within the A&D areas. It is only after the
validation based on ownership documents and projection on the DENR
Land Classification Maps can DAR commence with the coverage.

As there are two (2) modes of acquisition under AO 7, the persons


responsible in acquiring the documents for validation as well as the form
of notices are also different.

COMPULSORY ACQUISITION

1. Identification and Projection of


Landholdings

What should be undertaken prior to acquiring


any agricultural land?

Landholdings subject to acquisition shall be validated based on


ownership documents and on the projection of DAR on DENR Land
Classification Maps to determine whether or not the areas are A&D.

How can ownership be validated?

Tagged as the three (3) basic documents, the following validates the
identity of the LO and the landholding:

A. Certified true copy of the land title;


B. Certified true copy of the tax declaration; and
C. Copy of the approved survey plan or sketch plan certified by a
licensed geodetic engineer (GE).

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ADDITIONAL BASES FOR IDENTIFYING THE


REGISTERED LAND OWNER (RLO) FOR PURPOSES OF
ISSUING THE NOC

AO 1 Series of 2014, amended the 2nd paragraph of Section


15, AO 7 Series of 2011 on the issuance of NOCs. It provides
that:

“In case the RLO stated in the Transfer Certificate of Title (TCT)
or Original Certificate of Title (OCT) is different from that stat-
ed in the Tax Declaration, the NOC shall be served to the RLO
stated in the TCT or OCT.

In case the Register of Deeds (ROD) cannot issue to the DAR


a certified true copy of the TCT/OCT of a particular landhold-
ing within thirty (30) days from receipt of the written request
of the latter, or in case the ROD or the Land Registration Au-
thority (LRA) has certified that the TCT/OCT is missing from
its records, any or more of the following shall be sufficient as
basis for identifying the RLO for purposes of issuing the NOC:

1. Photocopy of the subject TCT or OCT already in the pos-


session of the DAR since prior to 1 July 2010;
2. Tax Declaration of the subject landholding indicating the
name of the landowner;
3. A certification from the ROD that the OCT/TCT is missing
from their records, provided that the technical descrip-
tion and the last known registered owner is indicated
thereon; and/or
4. Public documents, such as a notarized deed of sale or
donation, provided that the same states the name of the
landowner and the location and technical description of
the landholding.

In case the RLO identified in any of the aforementioned doc-


uments are different from each other, the NOC shall be issued
to all of said persons as owners for purposes of CARP cover-
age, subject to the determination of who has a better right on
the just compensation proceeds by the proper tribunal.”

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what will dar do after the determination that the


subject landholding is classified as a&d?

Based on the projection by the DAR on DENR Land Classification


Maps, DAR shall request for certification of A&D from DENR.

Is validation limited to desk research?

No. The MARO shall conduct a preliminary ocular inspection of the


landholding in order to determine the physical status, actual land
use, and the presence of at least three (3) monuments or natural
boundaries therein.

2. Issuance of NOCs

Upon completion of the required documents for


validation, how will the acquisition proceed?

Through the issuance of NOCs by the DARPO.

What is an NOC?

An NOC is a notice issued by the DAR to the LO advising the latter


that the subject property is being acquired under the agrarian
reform program of the government. The NOC also advices the LO of
the period within which –

A. To file a (i) protest on the coverage; (ii) manifestation for


exemption or exclusion; or (iii) manifestation to exercise the
right of retention;
B. To nominate preferred beneficiary/ies; and
C. To submit a list of agricultural lessees, regular and seasonal
farmers, and or his/her tenants.

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To whom shall the NOC be issued?

The NOC shall be issued to the land owner stated in the TCT or OCT
or, in case of untitled private agricultural land, in the tax declaration.

What if the names appearing in the OCT/TCT


and tax declaration are different?

The NOC shall be issued to the registered land owner whose


name is stated in the TCT or OCT, as the case may be.

Who are authorized to receive the NOC?

If the registered
Service shall be made upon:
landowner(s) is/are:

A natural person Him/her

Each and every registered co-owner,


Co-owners unless one is specifically authorized to
receive for the others

His/her father and/or mother, or to the


Minor person who has legal custody of the
owner

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If the registered
Service shall be made upon:
landowner(s) is/are:

His/her guardian if he/she has one, or,


if none, to his/her guardian ad litem
Insane or Incompetent
whose appointment shall be applied by
DAR

Any one of the registered land owner or


Entity without juridical
upon the person in charge of the office
personality
maintained in such name

President, managing partner, general


Domestic private juridical
manager, corporate secretary, treasurer
identity
or in-house counsel

If there is a pending case on the settle-


ment of estate, service shall be made to
the executor or to the administrator of
Heir/s of a deceased
the estate. If none is pending, or if there
registered land owner
is no executor or administrator, service
shall be made upon all known heirs
through publication.

When should the NOCs be issued?

Preferably, the NOCs shall be issued not later than 180 days from the
first day of the scheduled date of acquisition.

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How are NOCs served upon the Landowners?

The modes in serving NOCs are:

A. Personal service;

B. Substituted service;

C. Extra-territorial service; and

D. Publication.

How is personal service effected?

Personal service is effected when the person authorized to receive


affixes his signature or thumb mark on the receiving copy of the
NOC, in the presence of a witness who also affixes his signature.

What if the Land owner refuses to receive the NOC?

When the person authorized to receive is not present or refuses to


receive the NOC, the MARO shall immediately avail of substituted
service.

How is substituted service effected?

This is done by leaving a copy of the NOC at the residence of the


person authorized to receive with some person of suitable age and
discretion residing therein, or by leaving a copy at the land owner’s
office or regular place of business with some competent person
in charge. Thereafter, the PARO shall inform the Bureau of Land
Acquisition and Distribution (BLAD) at the DAR Central Office and
send a copy of the NOC for publication.

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How can service be effected if the land owner


residence is outside the country?

If the last known address is outside the territory of the Philippines,


the MARO shall resort to extra-territorial service where a copy of the
NOC will be sent abroad through registered mail and sent to Bureau
of Land Acquisition and Distribution (BLAD) for publication.

Is publication of NOC required at all times?

No. Publication is necessary only if –

A. The land owner’s residence is unknown

B. Substituted service or extra-territorial service was availed

C. Service will be made upon the heirs of a deceased land owner


with no executor/administrator or no pending settlement of
estate

What are the proofs of publication?

The affidavit of the editor-in-chief or circulation/ advertising manager


attests to the fact of said publication, and a copy of the published
NOCs.

is posting of NOCs required in all circumstances?

Yes. Posting of the NOC at the subject landholding and at the


bulletin boards of the Municipal/City Hall and Barangay Hall where
the property is located for seven (7) days is required. Waterproof and
environmental- friendly materials measuring two (2) by three (3) feet
shall be used for postings at the subject landholding.

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What information should be indicated in the


publication?

1. Statement of the coverage of the subject


landholding under CARPER based on the prioritized
phasing;
2. OCT/TCT/ Latest tax declaration number/s and the
corresponding area;
3. Complete name/s of land owners and last known
address, if available;
4. Location of the subject landholding (barangay, city/
municipality, province); and
5. The period of land owners to –
i. Nominate preferred beneficiary/ies;
ii. Submit a list of the agricultural lessees, regular
and seasonal farmworkers, and/or tenants in the
landholding;
iii. File a protest on coverage, manifestation to
exercise right of retention, exemption/ exclusion
6. Consequences of LO’s failure to exercise the
aforesaid rights within the prescribed period.

What is considered AS the date of receipt for NOCs


that were not served personally?

The date of posting or the date of publication, whichever comes


later, shall be deemed the date of receipt.

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VOLUNTARY OFFER TO SELL

A. Submission of Letter-Offer
What does the letter-offer under the voluntary
offer to sell mode contain?

The letter-offer states that the landowner or his authorized


representative voluntarily offers the subject property for sale to
the government in support of the agrarian reform program. It
specifically provides the proposed amount for the subject property,
the intention to exercise the right of retention and the names of
preferred beneficiary/ies, if applicable.

Who has the responsibility of gathering the three


(3) basic documents?

The landowner is required to submit the said documents together


with the Landowner Information Sheet. The VOS application shall
not be accepted until all the basic documents are complied with by
the landowner.

Can an LO offer only a portion of the landholding?

No. An LO who wishes to offer his landholding under VOS must offer
the entire area of the same parcel of land, subject to his retention
right.

Can VOS be withdrawn?

Yes, provided that the letter-offer has not yet been accepted by DAR.
Once withdrawn, the landholding is automatically covered under CA.

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B. Service of Letter of Acceptance


Is NOC required under the VOS mode?

No. The Letter of Acceptance also serves as an NOC.

When is a letter-offer deemed accepted by DAR?

A VOS is deemed accepted upon receipt of the landowner of the


PARO’s Letter of Acceptance. The Letter of Acceptance shall be
served in the same manner as the NOC.

Is shifting from CA to VOS allowed?

A landowner who received an NOC for his landholding under CA


may be allowed to shift to VOS provided that the claim folder for
the subject land has not yet been received by the Claims Processing,
Valuation and Payment Division (CPVPD) of the LBP.

What will happen if the landowner who shifted


to VOS failed to nominate a preferred beneficiary
and/or to submit a list of farmers and/or tenants
within the prescribed period from receipt of NOC?

The landowner is disqualified to nominate his preferred beneficiary


and is deemed to have waived his right to attest.

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LANDOWNER’S OPTIONS

The options available to the landowners and the period within which
to exercise the same depend on the mode of acquisition. Those who
applied under the VOS mode, for example, are deemed to have waived
certain rights that may be exercised by the landowners under the CA
mode.

What can the landowner do upon receipt of NOC?

Within a non-extendible period of thirty (30) days from receipt, the


landowner may do the following:
A. Nominate preferred beneficiary/ies;
B. File a protest from coverage;
C. File a manifestation for exemption or exclusion from coverage;
D. File a manifestation to exercise the right of retention.

How about landowners who voluntarily offered


their lands?

For landholdings under VOS, the landowner shall exercise his right of
retention and right to nominate preferred beneficiaries by submitting a
notarized notice thereof at any time prior to the completion of service of
the Letter of Acceptance.

What will happen if the landowner fails to act within


the prescribed period?

Failure to act within the given period shall be construed as a waiver on


the part of the landowner of the right to protest coverage, to nominate
their preferred beneficiaries, to file a petition for exemption or exclusion
from CARP coverage, and/or to exercise the right of retention, as the case
may be.

All protests, nominations and minfestations/petitions made after this


period shall no longer be accepted.

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NOMINATION OF PREFERRED
BENEFICIARIES
Who can be nominated as preferred beneficiaries?

The landowner may nominate his children as preferred beneficiaries,


provided that the following are met:

A. Filipino citizen;
B. At least fifteen (15) years of age as of June 15, 1988; and
C. Actually tilling or directly managing the farm as of the time of
the conduct of the field investigation of the landholding.

What is the advantage of becoming a preferred


beneficiary?

It means that the identified beneficiary will be given preference in the


distribution of the subject land. In no case, however, may the distribution
deprive the agricultural lessees and tenants of being awarded the portion
of the landholding they are actually tilling, which in no case shall be more
than three (3) hectares.

COVERAGE / EXEMPTION / EXCLUSION


Is the manifestation for exemption/exclusion the same
as the application for exemption and petition for
exclusion?

manifestation
≠ application / petition

No. The manifestation only states the landowner’s intention to file an


application or petition.

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The manifestation can be filed jointly or separately with the application/


petition. In case of the latter, the landowner has sixty (60) days from
receipt of the NOC within which to file the required pleadings.

What is the period allotted for landholdings under


VOS?

There is no allotted period because the landowner is deemed to


have waived his right to file such an application/petition upon DAR’s
acceptance of his offer.

Can a protest from coverage, application for


exemption or petition for exclusion stop the LAD
process27?

No. Despite the pendency of a Protest against Coverage, a Petition for


Exemption or Exclusion, or other agrarian law implementation (ALI) case,
the LAD shall continue until all the identified ARBs have been successfully
installed on the awarded land.

However the process will be suspended by the following:

A. Cease and Desist (CDO) or Status Quo Order from the Secretary;
B. Temporary Restraining Order (TRO) or Preliminary Injunction
from the Supreme Court

27  Section 29, AO 7 Series of 2011, as amended by AO 5 Series of 2017.

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Points to Ponder

Until when can the LAD process continue if


there are protests on the coverage and/or
petitions for exemption or exclusion of the
CARP covered landholdings?

AO 5 Series of 2017 amending Section 29, DAR


AO 7 Series of 2011

Section 29 of AO 7 Series of 2011 is one of the controversial


provisions of the LAD implementing rules and regulations.
Said section provides that:

“Section 29. Petition for Protest of Coverage and/or


Petition for Exemption or Exclusion Not Bar to Continue
LAD Process. Despite the pendency of a protest against
coverage or a petition for exemption or exclusion, the land
acquisition process shall nevertheless continue until the
issuance of the Memorandum of Valuation (MOV) with the
attached Land Valuation Worksheet (LVW) by the LBP, unless
otherwise suspended sooner or through a Cease and Desist
Order (CDO) by the RD or the Secretary,

xxx xxx xxxx”

This is considered a step back from its predecessor, AO


2, Series of 200928. In cases where there are petitions for
protests on the coverage and/or Petitions for Exemption or

28  Part A 14, Chapter IV on Statement of Policies provides that:

Notwithstanding a protest of coverage or an application for exemption or exclu-


sion by a landowner, the processing of the claim folder, including valuation and
the issuance of Certificate of Deposit (COD) by the Land Bank of the Philippines
(LBP) and the transfer of title to the Republic of the Philippines, shall continue un-
less the Regional Director or the DAR Secretary, as the case may be, suspends the
processing based on preliminary findings on grounds for exemption or exclusion
or the Supreme Court issues a Temporary Restraining Order (TRO) in the process-
ing of the claim folder.”

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Exclusion of the landholding, AO 2 Series of 2009 allowed


the LAD process to proceed until ownership of land is
transferred from the previous landowner to the Republic
of the Philippines. On the other hand, Section 29 of AO 7,
Series of 2011 as amended provides that the LAD process
will continue only until the issuance of the MOV (or the
initial valuation of the covered landholdings). With the
process limited until the issuance of the MOV, DAR prevents
itself from taking control and possession of the CARP
covered land. This has an implication in the FBs’ exercise of
their usufructuary right.

With the LAD process suspended until the issuance of the


MOV, it cannot proceed to the next steps leading to the
issuance of the Certificate of Deposit (COD). The DAR is
prevented from issuing the Notice of Land Valuation and
Acquisition (NLVA) to the landowner and transmitting
an Order to Deposit to the LBP. The COD will be issued by
the LBP after its receipt of the PARO’s Order to Deposit the
landowner’s Compensation29.

Under the existing rules, the ARBs have the right of usufruct
over the land from the time the DAR takes constructive or
actual possession of the same until the award of a CLOA30.
The issuance of the COD marks the period when the DAR
shall take possession of the landholding covered under
the CARP31. Pending the award of the CLOA and for the
purpose of establishing usufructuary rights, the DAR shall
immediately inform the ARBs, upon the issuance of the
Certificate of Deposit (COD) and upon actual possession of
the land32, that they have been identified and qualified to
receive the land,

However, for CARP covered lands with protests and/or


petitions for exemption or exclusion, however, the DAR will

29  Sections 77 and 78, DAR AO 7 Series of 2011, as amended.


30  Section 100, DAR AO 7, Series of 2011, as amended.
31  Section 81, DAR AO 7, Series of 2011, as amended.
32  2nd Paragraph, Section 100, DAR AO 7 Series of 2011,
as amended.

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not be able to take possession of the land, until the said


protest/and or petitions have been “denied by the RD,
or if appealed, by the Secretary, or if further appealed, by
the President of the Republic of the Philippines, unless
otherwise suspended by the Supreme Court” 33.

Last August 2017, the DAR issued AO 5 Series of 201734,


which among others, amended Section 29, AO 7 Series of
2011. AO 5 Series of 2017 provides that “the submission or
filing of a Petition for Protest of Coverage and/or Petition
of Manifestation for Exemption or Exclusion shall not stop
the continuation or completion of the LAD process which
includes the installation of Agrarian Reform Beneficiaries
(ARBs).35’’ Further, it states that “despite the pendency of
a Protest against Coverage, a Petition for Exemption or
Exclusion, or other agrarian law implementation (ALI) case,
the LAD shall continue until all the identified ARBs have
been successfully installed on the awarded land, unless
otherwise suspended by the Secretary thru a Cease and
Desist Order (CDO) or Status Quo Order or by the Supreme
Court (SC) thru Temporary Restraining Order (TRO) or
Preliminary Injunction36.”

AO 5 Series of 2017 allows the LAD process to continue until


the installation of the ARBs for CARP covered lands with
protests and/or petitions for exemption or exclusion. This
amends Section 29 of AO 7 Series of 2011 which allows the
LAD to proceed only until the issuance of the MOV.

33  2nd paragraph, Section 29, DAR AO 7 Series of 2011,


as amended
34  New Implementing Guidelines Governing the Compulsory
Acquisition of All Agricultural Lands with Pending Proceedings
or Cases
35  IV B of AO 5 Series of 2017
36  IVC of AO 5 Series of 2017

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AO 5 Series of 2017 amending Section 16 of AO


9, Series of 201137

Section 16 of AO 9, Series of 2011 provides that if there is


a protest against coverage or a petition for exemption or
exclusion pending at the time of the Perimeter Segregation
Survey (PSS) over landholdings which are problematic as
defined in Section 6 of AO 9, the DAR shall hold in abeyance
the survey activities until the protest against the coverage
or petition for exemption or exclusion has been denied by
the RD, or if appealed, by the Secretary. This is amended by
AO 5, Series of 2017 which allows the PSS notwithstanding
the filing of a protest against coverage or a petition for
exemption/exclusion or other ALI cases38.

AO 5 Series of 2017 amending Section 15 of


AO 11, Series of 201439

Section 15 of AO 11, Series of 2014 provides that:

“Section 15. Immediate Coverage Upon Favorable


Decision. – In all cases where the RD grants the request
or petition for coverage the PARPO shall immediately
place or cover the subject landholding without a need
for issuing a Notice of Coverage (Notice) under the CARP,
notwithstanding the pendency of an appeal before the
Secretary, but only up to the issuance of the Memorandum
of Valuation (MOV) with the attached Land Valuation
Worksheet (LVW) by the LBP, unless otherwise suspended

37 AO 9 Series of 2011 provides the Rules for the Survey and/or


Field Investigation of Landholdings Where the Department of Agrarian
Reform and the Land Bank of the Philippines are Denied Entry Thereto.
38 IV H of AO 5 Series of 2017.
39 AO 11 Series of 2014 provides the Procedure for and Guidelines in the
Handling of All Petitions for Coverage Under the Comprehensive Agrarian
Reform Program (CARP).

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sooner through a Cease and Desist Order (CDO) by the


Secretary, provided, however, that the RD shall ensure
that the landowner is properly served with a copy of the
decision in accordance with the pertinent rules.”

This is amended by AO 5 Series of 2017, which allows


the LAD process to proceed until the installation of the
identified ARBs, despite the pendency of a protest on the
Coverage of the landholding under the CARP.

Please note that AO3 series of 2017 amended the Rules for
ALI cases. (Please refer to Annex: Administrative Order No.
03, Series of 2017)

AO 5 Series of 2017 amending Section 1 of AO


5, Series of 201540

AO 5 Series of 2015 is an Administrative Order amending AO


5 Series of 2014 (Rules and procedure for the preliminary
processing of the LAD involving private agricultural lands
with Exemption/Exclusion or Conversion Orders revoked by
the DAR.)

Section 1 of AO 5, Series of 2015 amended Section 3 of AO


5 Series of 2014, pertaining to the issuance of the Notice to
Proceed. Said section provides:

“Section 3. Notice to Proceed. – Upon receipt by the PARPO


of the directive to proceed with the preliminary processing,
he shall immediately initiate the process of the issuance of
a Notice to Proceed particular to this Order.

40 AO 5 Series of 2015 amended AO 5 Series of 2014, which


provides for the Rues and Procedure for Preliminary Processing
of Land Acquisition and Distribution of Private Agricultural Lands Upon
Revocation by the Department of Agrarian Reform of Exemption/
Exclusion Conversion Order

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The Notice to Proceed shall be issued in the same manner,


and to the same persons, as that of a Notice of Coverage.

The Notice to Proceed shall inform the landowner that


the DAR shall proceed with the preliminary processing of
the acquisition and distribution of the subject land until
the issuance of the Memorandum of Valuation with the
attached Land Valuation Worksheet by the LBP, and that it
shall proceed thereafter should the Office of the President
affirm the decision of the Office of the Secretary in its
decision to revoke the Exemption/Exclusion or Conversion
Order.

XXX XXX XXX ”

AO 5 Series of 2017 allows the preliminary processing of the


acquisition and distribution of the land until the installation
of the ARBs, notwithstanding the pendency of an appeal to
the OP unless otherwise suspended by the Secretary, OP or
the SC41.

41  IV-G of AO 5 Series of 2017.

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RETENTION
Is the manifestation to exercise right of retention the
same as petition to exercise right of retention?

No. The manifestation only states the landowner’s intention to exercise


his right of retention.

The manifestation can be filed jointly or separately with the petition. In


case of the latter, the landowner has fifteen (15) days from the filing of
such manifestation within which to exercise such right.

What will happen if Landowner fails to exercise his


right of retention within the specified period?

Failure to choose within the prescribed period shall automatically


authorize the MARO to choose the area to be retained.

Are the heirs of a deceased landowner entitled to the


right of retention?

Yes, but the heirs of the deceased landowner who died after 15 June 1988
are only entitled to the five (5) hectare retention area.

Are spouses entitled to separate retention limits?

The answer depends on the property regime of the marriage.

ABSOLUTE COMMUNITY OF PROPERTY (ACP)

• Not more than five (5) hectares together

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CONJUGAL PARTNERSHIP OF GAINS (CPG)

• Not more than five (5) hectares together, unless either or


both are landowners in their own respective rights (capital
and/or paraphernal)

COMPLETE SEPARATION OF PROPERTY

• Not more than five (5) hectares each

What will happen to tenants who choose to remain in


the retention area?

They shall be leaseholders in the said land and shall not qualify as
beneficiaries under CARP. This option must be exercised within a period
of one (1) year from the time the landowners manifests his choice of
retention area.

Are lands which are to be expropriated also subject


to the retention limit?

No. Lands that are to be expropriated by LGUs shall not be subject to the
five (5) – hectare retention limit. However, prior to the expropriation, the
subject land shall first undergo the LAD process, and the ARBs shall be
paid just compensation without prejudice to their qualifying as ARBs in
other landholdings.

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ARB IDENTIFICATION
The office of the MARO and the Barangay Agrarian Reform Council
(BARC) are in-charge with (i) the information dissemination about the
identification of ARBs; (ii) the conduct of screening process; and (iii) the
posting and service of the required lists. For each posting, the MARO shall
secure the necessary certifications from the appropriate government
offices for inclusion in the Claim Folder.

ARB IDENTIFICATION

Who are eligible to become ARBs?

The minimum qualifications for an ARB are:

A. He must be a farmer/tiller who owns less than three (3) hectares


of agricultural land;
B. A Filipino citizen;
C. A resident of the barangay (or municipality if there are not
enough qualified ARBs in the barangay);
D. At least fifteen (15) years of age at the time of the identification,
screening, and selection of farmer-beneficiaries; and
E. Willing, able, and equipped with the aptitude to cultivate and
make the land productive.

For commercial farms or plantations, the applicant must be employed in


the subject landholding in order to be deemed as a regular farmworker.

Who are not eligible to be beneficiaries?

The following are not qualified to be beneficiaries:

A. Landowner-Mortgagors, including their children, of foreclosed


lands, where the redemption period has already expired;
B. Landowners who voluntarily offered their property;

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C. Landowners who waived their right of retention;


D. Farmworkers in commercial farms or plantations holding
managerial or supervisory positions as of the issuance of the
NOC.

What is the initial basis for the identification of


potential ARBs?

Within thirty (30) days from receipt of the NOC, the landowner is directed
to submit a list of all his/her tenants, agricultural lessees, and farmers
(regular and seasonal) at the time of its issuance. Said list shall be the
initial basis for the identification of farmer beneficiaries.

What if the Landowner failed or refused to submit said


list?

The MARO shall then conduct an initial determination of who are the
qualified ARBs for the pertinent landholding.

When will the identification commence?

Within three (3) working days from receipt of the list or after the lapse
of the thirty (30) day period for the submission, the MARO together
with the BARC shall prepare the preliminary list of qualified ARBs clearly
indicating therein their classification (i.e. tenants, regular farmworkers,
etc.). The preliminary list shall be posted for seven (7) days at the subject
landholding and on the bulletin boards of the Municipal/City Hall and
Barangay Hall where the land covered is located.

Can both spouses qualify as ARBs?

Yes. Qualified beneficiaries who are husbands and wives may be entitled
to three (3) hectares each, provided that they qualify as ARBs in their own
individual rights and that their respective vested rights to the land have
been duly established.

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What does a preliminary list contain?

The preliminary list contains the names of the potential ARBs and
instructions to –

A. Those listed to prove that they are qualified; and


B. Those who believe that they are qualified but whose names were
not included to signify their intent to be included and prove that
they are qualified.

Applicants have seven (7) days from the last date of posting within which
to submit the essential documents to prove their qualification.

What documents do they need to submit?

Documents that will prove their –

A. Identity;
B. Residency in the community where the landholding is located;
C. Qualification as ARBs; and
D. Interest to become ARBs.

Who will decide who among the applicants should be


awarded with the land?

The MARO, together with the BARC or the Barangay Council (if there is no
BARC), shall screen and select qualified ARBs. Within five (5) days after the
selection, the BARC or the Barangay Council shall prepare, under oath, a
Master List of qualified ARBs. The list shall be served to the landowner
not later than fifteen (15) days from certification through registered mail.

What does a Master List contain?

The Master List contains (i) the names of the qualified ARBs listed
according to prioritization; and (ii) notice to qualified ARBs that they will
be required to –

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A. Execute and sign the Application to Purchase and Farmer’s


Undertaking (APFU); and
B. Manifest preference for individual or collective ownership.

What is this order of prioritization?

Qualified ARBs shall be ranked in the following order:

A. Agricultural lessees and tenants;


B. Regular farmworkers;
C. Seasonal farmworkers;
D. Other farmworkers;
E. Actual tillers or occupants of public lands, only insofar as untitled
private agricultural lands are concerned; and
F. Others directly working on the land.

This order shall be used in the determination of how the subject land will
be divided among the potential ARBs.

as mentioned above, the Master List shall be served


upon the Landowner. What is the purpose of such?

In order to give the landowner the opportunity either to attest to the


veracity of the list or to file a written protest within fifteen (15) days from
receipt.

SCREENING AND SELECTION OF FARMWORKER


BENEFICIARIES (FWBs) FOR HACIENDAS,
COMMERCIAL FARMS OR PLANTATION

AO 10 Series of 2014 amended AO 7 Series of 2011 with


regard to its guidelines on the identification, screening and
selection of farmworker beneficiaries (FWB) in haciendas,
commercial farms or plantations. AO 10 Series of 2014
aimed to address issues and bottlenecks in the process

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of FB screening and selection in commercial farms and


plantations.

AO 10 Series of 2014 provides that ‘’all farmworkers who


worked on the land on or after 15 June 1988, whether under
the landowner or a civil law lessee (arriendador) shall be
considered as potential beneficiaries in the Preliminary List
of Potentional ARBs.42”

It further states that dismissed, terminated or retired


farmworkers at the time of the farmworker beneficiaries
identification, screening, and selection process can still be
considered as potential beneficiary provided that43:

a. They are farmworkers on or after June 15, 1998;


b. They meet all the qualifications provided in Section
22 of RA 6657, as amended; and
c. They are willing and able to do farming.

Farmworkers with labor related cases will be considered as


employed for purposes of identification and screening of
qualified farmer beneficiaries.

Employment records (employee’s ID, payroll, SSS records etc)


of the FWBs shall be submitted to the MARPO as proof of
employment of the FWBs. In the absence of these records, an
affidavit of two (2) disinterested persons shall be required
from the FWBs as substitute proof of their employment in
the landholding.

42  1st paragraph, AO 10 Series of 2014.


43  2nd paragraph, AO 10 Series of 2014.

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Can ARBs be disqualified?

Yes. ARBs can be disqualified on the following grounds:

A. Failure to meet the qualifications provided under Section 22 of


RA 6657, as amended;

B. Voluntary execution of a waiver of right to become an ARB in


exchange for due compensation, and such waiver has not been
questioned in the proper government entity as of the effectivity
of AO 7;

C. Deliberate and absolute failure of the ARB to pay an aggregate of


three (3) annual amortization to the LBP and subsequent failure
to exercise the right of redemption/repurchase within two (2)
years, provided an amortization table has been issued to the
ARB, and provided further that the amortization shall start one
(1) year from the ARB’s actual occupancy;

D. Deliberate and absolute non-payment of three (3) consecutive


amortizations in case of a VLT/direct payment scheme, provided
that the ARB has been installed and is in actual possession of the
land and provided further that the last proviso will not apply if
the non-possession of the ARBs is attributed to his or her own
fault;

E. With respect to commercial farms, termination from the service


for cause as of the date of effectivity of AO 7, unless a complaint
for illegal dismissal regarding the said termination is pending, in
which case the termination must be affirmed with finality;

F. Voluntary resignation or retirement from the service, provided


this was not attended by coercion and/or deception, and there
is no case questioning said resignation or retirement by the
applicant as of the date of effectivity of AO 7;

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G. Misuse or diversion of financial and support services extended to


ARBs pursuant to Section 37 of RA 6657, as amended;

H. Negligence or misuse of the land or any support extended by the


government as provided in Section 22 of RA 6657, as amended;

I. Material misrepresentation of the ARB’s basic qualifications


under Section 22 of RA 6657, as amended, PD 27, and other
agrarian laws;

J. Sale, transfer, lease or any other form of conveyance by a


beneficiary of the right of ownership, right to use or any other
usufructuary right over the land acquired by virtue of being such
beneficiary, in order to circumvent the provisions of Sections 27
and 73 of RA 6657, PD 27, and other agrarian laws;

K. Premature conversion by the ARB pursuant to Section 11 of RA


8435;

L. Final judgment for forcible entry or illegal detainer by persons


who are originally not qualified beneficiaries as ARBs, the
unlawful entry of which would have allowed them to avail the
rights and benefits of an ARB;

M. With respect to foreclosed landholdings, the landowner thereof


and/or his children, but only insofar as the same foreclosed
landholding is concerned; and

N. Commission of any violation of the agrarian reform laws and


regulations, or related issuances, as determined with finality
after proper proceedings by the appropriate tribunal or agency.

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Should Landowner file a protest, how long will it


take before the Master List will be finalized?

No specific period provided except that the PARO shall conduct a


compulsory arbitration within ten (10) days from receipt. The PARO’s
decision shall be final insofar as the list is concerned.

What will be the implication if landowner fails or


refuses to attest or file a protest within the given
period?

It shall be construed as a waiver of his right to attest.

How about the ARBs? How will they know the contents
of the Master List?

Copies of the Master List, as attested to by the landowner or decided by


the PARO, shall be served upon all those named therein and to all persons
listed in the preliminary list but are not included in the approved Master
List. It shall also be posted for seven (7) days at the Barangay Hall where
the landholding is located, and within the premises of the landholding.

Should there be an error in the Master List, what can


the concerned farmer beneficiary do?

Within fifteen (15) days after the posting of the Master List, any of the
potential beneficiaries may file a written protest thereon. In such a case,
the PARO shall conduct compulsory arbitration within ten (10) days
from receipt of said protest to resolve the same. The parties concerned,
specifically the persons to be excluded, shall be duly notified of the
proceedings and the decision.

Are there limitations as to the authority of the PARO


on this matter?

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Yes. The authority of the PARO is specifically limited to protests and


petitions on the ARB’s qualifications to be included in the Master List.
Other issues related to ARB’s qualifications under specific issuances shall
be filed as an agrarian law implementation (ALI) case with the RD.

In the event that the PARO decides to amend the Master


List, will there be another posting?

Yes. The amended list shall be posted for another seven (7) days.

In case of an adverse decision, what can the aggrieved


party do?

A person who disagrees with the decision may file a verified petition
for inclusion/exclusion against the ARBs in accordance with existing ALI
rules.

Until when can the inclusion/exclusion petition be


filed with the RD?

The filing of a verified petition must be initiated within one (1) year from
the registration of the Republic of the Philippines title (“RP Title”), or from
the issuance of Certificate of Deposit in case the landholding is untitled.
Petitions filed beyond the one (1) year period will be dismissed.

Will the inclusion/exclusion proceeding affect the


land distribution?

No. The LAD process shall continue despite the pendency of the case. But
if the action is still pending at the time of the generation of the CLOAs,
the ARBs shall be notified by the MARO that the land allocated may still
change depending on the final conclusion of the case. In such case, the
PARO shall cause the annotation on the back of the CLOA that the award
is not yet final until such time that a final and executory decision has been
rendered on the case.

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Issuance of noc

30 days

Submission of list by lo non-submission of list by lo

3 days from receipt of list upon


lapse of 30 days

preparation and posting of preliminary list


(within 7 days)

7 days

submission of documents

Screening

5 days

preparation of master list & service upon lo

15 days

lo to file protest
lo to attest to the veracity of
the list of non-action

decision of paro

service and posting of final list (7 DAYS)

15 days
FInal list arb to file protest

1 year

amended final list ali case with rd-osec-op

final list

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What will happen to the annotation upon the


termination of the case?

The PARO, in his own instance, shall cause the removal of the annotation
upon the termination of the case.

ARB OATH

Aside from the submission of documents to prove


their qualifications, what are expected of the ARBs in
the LAD implementation?

The ARBs who qualify under the screening process shall state under oath
before the judge of the city or municipal court that he/she44:

a. is willing to work on the land to make it productive; and


b. will assume the obligations imposed by pertinent Agrarian
Reform Laws.

Will the failure to take the ARB Oath be considered as


a waiver of the right to become an ARB?

No. The failure to take the ARB Oath shall not be construed as a waiver of
the right of the farmer to become an ARB. On the other hand, it will also
not be considered as an exemption from fulfilling the obligations of an
ARB under agrarian reform laws.

The failure to take the ARB Oath will also not cause the ARBs to be
removed from the ARB Masterlist.

44  Section 60 of AO 7 Series of 2011 and Section 19 of AO 3 Series of 2012 as amended by


Section 2 of AO 1 Series 2017.

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Points to Ponder
ARB Oath in lieu of APFU

Under AO 7 Series of 2011 as amended by AO 3 Series of 2013,


the ARBs need to sign a document called the Application to
Purchase and Farmer’s Undertaking (APFU) stating that they
are 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 as well as the land taxes thereon.
The ARBs will also need to make an oath before the judge
of the city or municipality committing that they will comply
with their pledge in the APFU. Failure to or refusal to execute
and sign the APFU constitutes a waiver of the farmer’s right
to become an ARB.

Under AO5 Series of 2017, the execution of the APFU is no


longer required for purposes of giving their assurance in
complying with their responsibilities and obligations as
ARBs. What is required is the ARB’s oath before the judge of
the city or municipal court pledging their compliance with
their undertaking as ARBs.

In any case, the ARB Oath will not be a condition precedent


to their qualification as ARBs of the landholding.

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LAND SURVEY & JOINT FIELD


INVESTIGATION
After the identification of qualified ARBs, DAR will then proceed with
the survey of the subject landholding. The land survey will identify the
coverable areas and will delineate the portions allocated for each ARB.
Thereafter, a field investigation will be conducted by the MARO and
representatives of LBP and BARC in preparation for the determination of
just compensation.

After identifying the qualified ARBs, can DAR proceed


with land valuation45?

No. Survey activities and field investigations, for purposes of segregating


coverable and non-coverable areas, and determining land use shall first
be conducted.

The Provincial Agrarian Reform Program Officer (PARPO) shall, within five
(5) working days from receipt of the claim folder (CF) from the Municipal
Agrarian Reform Program Officer (MARPO), determine the completeness
and correctness of the required documents prior to the conduct of the
Joint Field Investigation (JFI) and valuation.

If the documents are complete and correct, the PARPO shall within five
(5) working days, submit the CF together with the Advance or Approved
Copy of the Segregation or Subdivision Plan (AdvSP or ASP), whichever is
applicable, to the DAR Regional Office (DARRO).

In the case of the AdvSP, the PARPO and the Geodetic Engineer (GE) who
conducted the survey shall jointly certify that the AdvSP to be used in the
JFI is the same subdivision plan attached to the survey returns submitted
or to be submitted to the DENR or the LRA for approval.

45  Sections 65 and 68 of AO 7 Series of 2011 and Sections 20, 21 and 22 of AO 3 Series of
2011, as amended by Section 1.1 of AO 4 Series of 2014.

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The DAR Regional Director (RD)or his/her duly authorized representative


shall, within three (3) working days from receipt of the CF from the
PARPO, convene the DAR-LBP Pre-Processing Unit (PPU) to validate the
completeness and correctness of the documentary requirements in the
CF prior to the conduct of the JFI and valuation.

Is it necessary for DAR to wait for the approval of the


survey results before it can request for a Joint Field
Investigation (JFI) with LBP46?

No. However the DAR needs to attach the Segregation Survey Plan to its
request for a joint FI. The land use shall be indicated per lot in the AdvSP
or ASP during the Field Investigation.

Where a particular lot has multiple land uses, the AdvSP or ASP should
reflect the actual land use/s on a per lot basis.

In case of conflict between the AdvSP or ASP and the result of the JFI, the
JFI shall prevail. A resurvey will be conducted to adjust the AdvSP or the
ASP in accordance with the result of the JFI.

What will be the process after the conduct of the JFI47?

Immediately after the completion of the JFI, the team shall accomplish
and sign a Field Investigation Report (FIR). They will certify the correctness
of the land use/s per lot by affixing their signatures of the AdvSP or the
ASP.

The FIR signed by the JFI team shall be forwarded by the MARPO to the
PARPO and LBP Agrarian Operation Center (AOC) Head for notation and
signature.

46  Sections 65 and 68 of AO 7 Series of 2011 and Sections 20 and 21 of AO 3 Series of


2012, as amended by Section 1.2 of AO 4 Series of 2014.
47  3rd paragraph of AO 4 Series of 2014.

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If the FIR tallies with the AdvSP or ASP, the PARPO shall immediately
forward the FIR, together with the copy of the AdvSP or ASP certified by
the JFI team, to the DAR Regional Office (DARRO) for inclusion in the CF
by the Regional CARPO for Operations.

What is the purpose of conducting an FI?

The purpose is to verify the reports contained in the Claim Folder (CF) for
valuation purposes. It shall be conducted jointly by the MARO, a member
of the BARC and representatives of the LBP.

The following persons shall be invited, when needed:

A. The Municipal/Provincial Agricultural Office if there is an issue on


the suitability of the landholding for agriculture;
B. DENR-CENRO/PENRO if there is any issue as to the slope; or
C. Licensed geodetic engineer if there are less than three (3)
monuments and/or natural boundary points remaining at the site.

Will the landowner and ARBs be invited to join the


investigation?

Yes. They shall be notified no later than fifteen (15) days prior to the
scheduled date of the conduct of the FI. DAR may proceed even in their
absence, provided that they were duly notified. Proof of notice shall be
included in the CF.

What happens after the conduct of FI?

After the FI, the MARO and the representatives of BARC and LBP shall
prepare the FIR.

Upon completion of the FIR, the CF and the Land Distribution Information
Schedule (LDIS) shall be transmitted to the DAR-LBP Processing Unit
(PPU) for verification and eventual transmittal to the LBP. Upon receipt,
LBP may begin its process of determining the value of just compensation.

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LAND VALUATION
The LBP shall determine the initial valuation of the landholding and
inform DARPO of its computation through a Memorandum of Valuation
(MOV) with a Land Valuation Worksheet (LVW). No MOV, however, shall
be issued by LBP prior to its receipt of the Approved Survey Plan (ASP).

The ASP refers to the survey plan verified and approved by DENR-LMS.
DARPO shall submit the ASP to the LBP within three (3) days from receipt.
If the ASP’s total area is the same as in the survey plan included in the CF,
then the LBP may determine the initial valuation. Otherwise, a resurvey
must be conducted to correct the discrepancy.

Aside from the ASP, the DARPO will also submit the Masterlist of ARBs, the
ARBs Oaths and the Land Distribution and Information Schedule (LDIS)
to the LBP within three (3) working days from the execution of the ARBs’
Oaths. The ARB Oath shall be used in lieu of the APFU48.

How is land value determined?

The basic formula for the computation is:

LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)

Where –

LV Land Value

CNI Capitalized Net Income based on land use and


productivity. This is determined by taking the sum of the

48  Section 71 of AO 7 Series of 2011 and Section 25 of AO 3 Series of 2012, as amended


by Section 3 of AO 5 Series of 2017.

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net present value of the streams of income that will be


forgone by the landowner due to the coverage of his
landholding.

CS Comparable Sales based on the principle of substitution.


This is based on the fair market value equivalent to 70%
of Bureau of Internal Revenue zonal value.

MV Market Value as stated in the Tax Declaration

What if not all factors are present?

A. If all 3 factors are present:

LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)

B. If only CNI and MV are present:

LV = (CNI x 0.90) + (MV x 0.10)

C. If only CS and MV are present:

LV = (CS x 0.90) + (MV x 0.10)

D. If only MV is present:

LV= MV x 2

In no case, however, shall the value of idle land using the formula (MV
x 2) exceed the lowest value of land within the same estate under
consideration or within the same barangay, municipality, or province (in
that order) approved by the LBP within one (1) year from receipt of the CF.

Will the Landowner be compensated for the land


awarded to his preferred beneficiaries?

No. They are not to be included in the computation because the preferred
beneficiaries are his/her children.

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What will LBP do after determining the value of the


land?

LBP will prepare an MOV and transmit the same to DARPO.

Within three (3) days from receipt of the MOV, the PARO shall issue the
Notice of Land Valuation and Acquisition (NLVA) and direct the MARO to
serve the NLVA, MOV and LWV to the landowner within five (5) days.

PARO

Issue NLVA and Issue NLVA and


direct MARO to direct MARO to
serve the NLVA, MOV serve the NLVA, MOV
and LVW to LO and LVW to LO

On the same day, the PARO shall transmit his Order to Deposit Landowner’s
Compensation to the LBP. The LBP, in turn, shall issue a Certificate of
Deposit (COD) upon receipt. LBP shall also notify LO of the checklist of
pre-payment requirements.

How will the NLVA be served?

If the LO was served with the NOC through personal or substituted


service, or has corresponded with DAR in relation to the landholding after
its publication, the NLVA shall be served by registered mail. Otherwise, or
the registered mail remained unserved for fifteen (15) days or more, the
PARO shall cause its publication in a newspaper of national circulation.

The NLVA shall also be posted at the site of the landholding and on the
bulletin boards of the Barangay Hall and Municipal/City Hall where the
subject landholding is located within five (5) days.

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What is expected of the Landowner upon receipt of


the NLVA?

The landowner must file a written acceptance or rejection within thirty


(30) days from receipt of the NLVA, or its posting, whichever comes later.

Should the Landowner reject the valuation, can he


make any withdrawals from the original value of
the landholding as determined by DAR and LBP?

Yes, the landowner may withdraw the original value subject to the
submission of the requirements for payment. The withdrawal shall not
automatically terminate the adjudication of the just compensation case.

What takes place after the COD has been issued?

Within ten (10) days from receipt, the PARO shall transmit copies of the
COD and ASP to the ROD and request for the issuance of a TCT in the
name of the Republic of the Philippines.

Upon receipt of the request, the ROD shall immediately issue the RP Title
for the CARP covered area and a separate title to the retention and non-
coverable areas in the name of the LO.

CLOA GENERATION
Simultaneous to the request for issuance of RP Title, the PARO shall direct
the MARO to take actual possession of the land and to prepare the Land
Distribution Folder (LDF). While preparing the LDF, the MARO shall notify
the qualified ARBs of the completion of the acquisition process. The
MARO shall also notify them of their usufructuary rights over the lands
allocated as their area of award.

DARPO will proceed with the generation of the CLOAs upon verification
of the contents of the LDF.

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What does the LDF contain?

The LDF contains –

A. Duly executed APFUs;


B. Duly received copies of the letters to qualified ARBs allocating
area of award;
C. ASP;
D. Copy of the RP Title; and
E. LDF Transmittal Memorandum.

The MARO shall provide a list containing the names of the qualified ARBs
and their corresponding lot areas.

LAND DISTRIBUTION

How will the subject land be divided among the


qualified ARBs?

The qualified ARBs may agree among themselves how the land shall be
allocated. The agreement must be signed by all.

What if no agreement was made?

The land shall be allocated in the following manner:

A. It shall first be allocated to agricultural lessees, tenants, and


regular farm workers of the same landholding up to a maximum
of three (3) hectares each.
B. The remaining area shall be distributed to seasonal farm workers,
other farm workers, actual tillers or occupants of public lands,
and others directly working on the land, in that order of priority.
C. Excess areas, if any, shall be awarded to collectives or cooperatives
of the beneficiaries.

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How will the land be allocated if there are preferred


beneficiaries?

Preferred beneficiaries may select a contiguous and compact area, not


exceeding three (3) hectares, prior to determining the allocation for the
ARBs. In no case, however, may the distribution to preferred beneficiaries
deprive the agricultural lessees and tenants of being awarded the portion
of the landholding they are actually tenanting/leasing, which in no case
shall be more than three (3) hectares.

If the land is not enough for the agricultural lessees,


tenants and regular farm workers, how will it be
divided?

It shall be divided equally among the agricultural lessees, tenants and


regular farm workers subject to the following conditions –

A. In no case may the allocation deprive the agricultural lessees and


tenants of being awarded the portion of the landholding they are
actually leasing, which shall not be more than three (3) hectares;
B. The minimum area to be awarded to an ARB is 1,000 square
meters.

In case the allocation will result to the distribution of less than 1,000
square meters to each ARB, the following shall be followed:

A. The ARBs shall be ranked according to the aggregate period of


the lease or service/occupancy as tenant/farm workers, where
the ARBs with the longest period shall be prioritized.
B. Each ARB shall be allocated with 1,000 square meters until the
area remaining is less than 1,000 square meters. This remaining
area shall then be distributed equally among the FBs who
received 1,000 square meters each.

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If all agricultural lessees, tenants and regular


farmworkers have been allocated with a maximum
of three (3) hectares each, what will happen to the
remaining areas?

The same shall be distributed in the manner laid out in item 95 to the
identified seasonal farmworkers, other farmworkers, actual tillers or
occupants of public lands, and others directly working on the land, in
that order of prioritization. This means that all seasonal farmworkers
shall first receive a maximum of three (3) hectares before the remaining
areas will be allocated to the other qualified ARBs.

CLOA GENERATION

What is the rule in CLOA generation?

In general, the ARBs shall be awarded with individual CLOAs covering


one (1) contiguous tract or several parcels of land cumulated up to a
maximum of three (3) hectares.

Can the ARBs opt for collective ownership?

Yes. They may opt for collective ownership, through a co-workers


or farmers’ cooperative/association or some other form of collective
organization. The total area to be awarded shall not exceed the total
number of co-owners or members of the cooperative or collective
organization multiplied by the award limit of three (3) hectares, except in
meritorious cases as may be determined by the PARC.

In case of a collective ownership, under whose name


should the CLOA be issued?

A collective CLOA shall be issued in the name of the co-owners, who may
form a farmer’s cooperative/association or collective organization. In
such a case, the names of all the beneficiaries must be listed in the CLOA.

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What are the conditions for issuing a collective


CLOA?

Collective CLOA may be issued under the following instances:

A. The current farm management system of the land covered


by the CARP is not appropriate for either individual
farming or division of the landholding into farm parcels;

B. The farm labor system is specialized, where the farm workers


are organized by functions such as spraying, weeding, packing,
and other similar activities, and not by specific parcels;

C. The potential beneficiaries are currently not farming individual


parcels but collectively working on large contiguous areas; and

D. The farm consists of multiple crops being farmed in an integrated


manner, or includes non-crop production areas that are necessary
for the viability of farm operations, such as packing plants,
storage areas, dikes, and other similar facilities that cannot be
subdivided or assigned to individual farmers.

The preference for a collective CLOA shall be made within fifteen (15)
days from the posting of the Master List. Failure to file a manifestation
shall be construed as a waiver of the right to choose and that the ARBs
opted for an individual CLOA.

Is collective ownership allowed over idle,


abandoned, or undeveloped lands?

It shall be allowed ONLY if the beneficiaries opt for it, and in case there
is a clear development plan that would require collective farming or
integrated farm operations exhibiting the conditions described in Section
96 of AO 7. Otherwise, individual CLOAs shall be issued.

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Pending the award of the CLOA, may the ARB till the
land?

Yes. The ARBs have the right of usufruct over the land from the time the
DAR takes constructive or actual possession of the same until the award
of a CLOA.

In case of married beneficiaries, how should their


names appear in the CLOA?

For legally married spouses, the names of both husband and wife shall
appear in the CLOA and shall be preceded by the word “spouses.”
Should the couple qualify as individual ARBs, their names shall be
registered in the title, indicating that the first named spouse is the
awardee (i.e. Maria married to Juan).

In case of common-law relationship, the names of both parties shall


likewise appear in the CLOA with the conjunctive word “and” between
the names. Should they likewise qualify as individual ARBs, their names
may be registered without the other.

The same provisions shall apply where married ARBs or those in common
law relationships are covered by a collective CLOA.

When will the rights and obligations of the ARBs


commence?

The rights of the ARBs (other than the usufructuary rights) and their
obligations shall commence from their receipt of a certified true copy of
the duly registered CLOA and actual physical possession of the awarded
property.

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OBLIGATIONS OF ARBs
• To exercise diligence in the use, cultivation, and maintenance of the
land, including the improvements thereon. Negligence, misuse, or
unauthorized sale of the land or misuse of any support extended to
an ARB shall be a ground for the forfeiture of one’s right as an ARB.

• To pay the LBP the thirty (30) annual amortization with


interest at six percent (6%) per annum. Payments shall
commence one (1) year from the date of actual occupancy of
the ARB, provided that the CLOA has already been registered.

• To pay the real property taxes due on the awarded lands.

• Not to sell, transfer, or convey the awarded land, except through


hereditary succession or to the Government, or to the LBP, or to
other qualified beneficiaries within a period of ten (10) years, and
while the amortization payments have yet to be fully paid.

Pending full payment of the amortization of the


awarded land, can the ARB get a copy of the CLOA?

Yes. They can secure a copy of the CLOA. Pending full payment of the
amortization, however, the LBP as the mortgagee-financing institution
shall be the responsible repository of the CLOAs until the time of their
release to the ARBs upon full payment of the land amortization and the
cancellation of the encumbrance.

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INSTALLATION OF ARBS

When does the ARB’s right to possess the land


commence?

As owner/s of the awarded land, the ARB shall take possession of land
from the time the same is awarded to them through a registered CLOA.

What assistance can DAR give to the ARBs in cases


where their lives are threatened by the installation?

In case taking possession of the awarded land by the ARB would imperil
or endanger their lives, the DAR shall assume responsibility for the
installation of the ARBs, with the assistance of the police or military, until
they have settled in constructive and physical control of the property.

The PARO may issue a Writ of Installation directing the Sheriff of the
Provincial Agrarian Reform Adjudicator (PARAD) or the Regional Agrarian
Reform Adjudicator (RARAD) who has jurisdiction over the landholding,
alone or with the assistance of the police or military, to conduct all
necessary lawful acts to physically install the ARBs.

In case the installation would need the assistance of the police or military,
the PARO shall coordinate with the Department of National Defense-
Armed Force of the Philippines (DND-AFP) and the Department of Interior
And Local Government- Philippine National Police (DILG-PNP), pursuant
to the Memorandum Order executed by the DAR, DILG and DND.

The ARBs may seek assistance from the DAR when they are facing threats,
harassments, or ejection attempts by the landowners and other parties.

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What other forms of assistance can the DAR provide


the ARBs?

The DAR shall assist the ARBs in reporting cases to the police or military, as
well as the filing of the appropriate legal action against those responsible,
if warranted. If dispossessed, the DAR shall assist the ARBs in recovering
the possession of their land.

In cases of failed installation and/or dispossession of FBs due to LO


harassment, the DAR may refer the matter to the DOJ for the proper
investigation of possible violation of Section 73 of R.A. No. 6657, as
amended.

What actions can the ARBs do in cases of LO


harassments?

In the event the former landowners harasses or threatens the ARBs, they
should immediately report the matter to the concerned PNP and DARPO.
The ARB shall be assisted by the DAR Regional/Provincial Legal Division,
Public Attorney’s Office (PAO), and the Office of the City/Provincial
Prosecutors for legal action.

What actions can the ARBs do in cases where they


are forcibly driven out of their land?

The ARBs shall take the initiative in filing a criminal case against the
perpetrators, with DAR providing legal assistance to the ARBs. The ARBs
shall be re-installed notwithstanding the pendency and result of the case
filed against the perpetrators conformably with A.O. No.4, Series of 2010.

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What is the liability of the LO who obstructs, delay


or stalls the installation of the ARBs?

The landowner shall be liable under Section 73 (d) of RA 6657, as


amended. The landowner shall also be liable for actual, compensatory,
and moral damages suffered by the ARBs.

POWERS & DUTIES


Can the RD and the DAR Secretary issue protective
injunctive orders?

Yes. The RD and the DAR Secretary, motu propio, can grant a protective
order injunction order within two (2) years from the issuance of the CLOA
to preserve the covered lands and ensure the peaceful and effective
ownership of the ARBs.

A protective injunction order may be mandatory, to enjoin the


performance of a ministerial duty sanctioned by the laws, or prohibitory
in nature in order to stop the commission of an act detrimental to the
rights of the parties in an agrarian controversy.

Failure to comply with such order is considered an obstruction to


CARP implementation and punishable under Section 73 of RA 6657, as
amended.

What are the duties of the ROD in the implementation


of CARP?

The ROD has the ministerial duty to:

A. Register the title in the name of the Republic of the Philippines,


after the LBP has certified that the claim proceeds have been
deposited in the name of the landowner constituting full
payment in cash and bonds, with the notice to the landowner;

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B. Register the CLOA generated by DAR;


C. Cancel previous landowner titles pertaining thereto; and
D. Issue title for the landowner’s retained area and other non-
CARPable areas.

Can the implementation of AO 7 be suspended?

Yes. In order to serve and protect the interest of CARP implementation,


the DAR Secretary may suspend the rules embodied in AO 7, as amended.

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Introduction

T he actual and peaceful occupation of farmer beneficiaries in their


awarded lands is one of the challenges in the successful implementation
of the CARP. The receipt of the CLOAs by the farmers does not necessarily
translate to security of tenure for them. Even if the farmers are already
owners of the land, there are cases where the previous landowners do
not respect, recognize and accept their ownership. Various machinations
are employed by previous landowners to remain in control of the land.

There are many instances were CLOA holders cannot set foot on their
awarded lands. The former landowners hire blue guards, or employ
their farmworkers to block the CLOA holders from entering the land and
threaten their family members with harm or filing of cases if they persist
on doing so. They take advantage of the poverty and vulnerability of
the farmers using violence, harassment – both physical and legal, and
intimidation.

The DAR and PNP assistance is crucial in ensuring the actual and peaceful
possession of farmers in their awarded lands, especially where landowner
resistance is strong and unrelenting. These agencies provide installation
guidelines49 in cases where the FBs need DAR and PNP assistance to
assert their rights of ownership over their property.

49  DAR AO 7, Series of 2011 as amended and PNP Handbook PNPM-DO-DS-3-2-13 issued
In December 2013.

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role of the pnp and afp


in the installation of arbs
What are the government offices involved in the
program?

Many agencies are involved in the implementation of CARP. The lead


agencies are the DAR, and the DENR.

Can DAR seek the assistance of other government


agencies?

Section 69 of RA. 6657 expressly provides that DAR, in the exercise of its
functions, is hereby authorized to call upon the assistance and support of
other government agencies, bureaus and offices, including government
owned or controlled corporations.

Does it include the Philippine National Police (PNP) and


the Armed Forces of the Philippines (AFP)?

Yes, Section 109 of AO 7, Series of 2011, provides that in cases where


taking possession of the awarded land will endanger the lives of the
CLOA holders, the DAR shall assume responsibility for the installation of
the farmers with the assistance of the police and/or military.

In the event that the installation activities would necessitate the


assistance of the police and/or military, the PARO shall coordinate the
said activities with the DND-AFP and the DILG-PNP, in accordance with
existing guidelines executed by the DAR, DILG and the DND.

As early as 1989, The Department of Interior and Local Government


(DILG), Department of National Defense - Armed Forces of the Philippines
(DND-AFP), and DAR issued a Memorandum of Agreement to forge their
partnership for the successful implementation of the program.

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On 3 May 1995, DAR, DILG and the PNP signed a Memorandum of


Agreement (1995 MOA) reinforcing their 1989 agreement regarding the
law enforcement aspect of the agrarian reform laws and programs. In the
opening statement of the said MOA, the DAR and DILG-PNP unequivocally
stated that “the DAR and DILG are mutually desirous and committed
to institutionalizing the existing full support to, and cooperate with,
one another for the successful implementation of the Comprehensive
Agrarian Reform Program (CARP).”

Moreover, on 10 June 2002, cognizant of the equally important role of


the DND-AFP in the implementation of the agrarian reform program,
the DAR, DILG-PNP and DND-AFP issued DAR-DILG-DND Joint Circular
No. 05-02 (2002 Joint Circular) supplementing the 1995 MOA. In the
main, the concerned government agencies reaffirmed their respective
commitments in the successful and immediate implementation of the
AR program and, pursuant to their mandates, laid down the specific roles
of each agency “for their mutual cooperation for the attainment and
fulfillment of their respective functions.”

DAR AO 5, Series of 2017 further stressed the crucial role of the security
sector in the installation of the ARBs in the exercise of their rights as
owners of the land. The said AO provides that the DAR, through the
PARPO “must ensure the installation of the ARBs on their awarded lands,
as owners, until they are in physical possession and full control thereof,
and if necessary, call on the Philippine National Police (PNP) and/or
Armed Forces of the Philippines (AFP) for assistance. xxx xxx xxx”

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What is the current PNP rules/procedure governing


the role of our police force in CARP related
activities?

Rule 30 of the 2013 PNP Manual50 provides for specific rules regarding the
provision of police assistance in the implementation of the CARP.

What are the CARP related activities that can request


police assistance?

Under Rule 30.1 of the 2013 PNP Manual, the following activities can be
provided with police assistance:

A. Final Orders

1. Final Orders/Resolutions/Decisions Issued by DAR

2. Order of Installation or Certificate of Land Ownership Award


(CLOA)

B. Preliminary Agrarian Activities

1. Land survey

2. Field Investigation

3. Ocular Inspection

4. Meeting between actual and potential Agrarian Reform


Beneficiaries

5. Post Installation

6. Landholding tagging

7. Analogous cases

50  PNP Handbook PNPM-DO-DS-3-2-13 issued In December 2013.

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Can the mentioned activities be subject of an


injunction order?

No. As expressly provided in Section 55 of R.A. 6657, except for the


Supreme Court, no court in the Philippines shall have jurisdiction to issue
any restraining order or writ of preliminary injunction against the PARC,
the DAR, or any of its duly authorized or designated agencies in any case,
dispute or controversy arising from, necessary to, or in connection with
the application, implementation, enforcement, or interpretation of this
Act and other pertinent laws on agrarian reform.

Moreover, Section 68 of R.A. 6657 provides for immunity of government


agencies from undue interference. Said section states that in cases falling
within their jurisdiction, no injunction, restraining order, prohibition or
mandamus shall be issued by the regional trial courts, municipal trial
courts, municipal circuit trial courts, and metropolitan trial courts against
the DAR, the DA, the DENR, and the DOJ in their implementation of the
program.

What are the requirements in the granting Police


assistance?

Under Rule 30.2 of the 2013 PNP Manual, police assistance in the
implementation of final orders, decisions, resolutions or CLOAs issued
by DAR shall be rendered only upon a written request submitted by the
Agrarian Reform Officer or any authorized Officer of DAR, accompanied
with the original or authenticated copy of the final decision, order or
CLOA to be implemented. The request and its attachments, regardless of
the place of execution, shall be submitted to the Office of the Chief, PNP
for his approval.

In a Memorandum dated 16 August 2016 issued by Police Director General


(PDG) Ronald M. Dela Rosa, the Office of the Chief PNP “delegates to the
Regional Directors the authority to approve requests for police assistance
within their area of jurisdiction in the implementation of final decisions or
orders or resolutions of the courts in civil cases, of quasi –judicial bodies,

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and of administrative bodies subject to the requirements of existing laws,


policies, and regulations.”

For police assistance during the conduct of preliminary agrarian activities


as provided in Rule 30.1b51, it shall be rendered only upon a written request
submitted by the Agrarian Reform Officer or any authorized Officer of
DAR, accompanied with the original or authenticated copy of the Order
issued for the activity (if applicable). The request shall be submitted to
the Office of the Regional Director of the Police Regional Office having
jurisdiction over the area of execution for his approval.

What is the extent of the Police Assistance?

As provided in Rule 30.4 of the 2013 PNP Manual, the head of office
or unit tasked to render police assistance shall have the discretion to
employ sufficient number of PNP uniformed personnel after taking into
consideration the scope of the resistance to be encountered, if there
is any, and the general peace and order condition in the area. Unless a
higher ranking Officer is necessary and more PNP personnel are required,
the police team that will render police assistance should be led by a Police
Commissioned Officer (PCO) with the rank of Police Senior Inspector. All
members of the team shall be in prescribed uniform when rendering
police assistance.

What is the specific role of PNP Personnel rendering


police assistance?

Rule 30.5 of the 2013 PNP Manual states that the PNP personnel shall
observe maximum tolerance and respect for individual rights at all times.
The use of reasonable force shall only be resorted to for self-defense and
defense of strangers. Moreover, the PNP personnel shall always exercise
utmost impartiality and neutrality in effecting its role. The role of the PNP
when rendering police assistance shall be limited to the maintenance of

51  2013 PNP Manual.

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peace and order, crowd control, and the security of the duly authorized
officer of the DAR. In no case shall PNP members participate in the
implementation of the decision/order/resolution or in the conduct of any
of the preliminary agrarian activities, which shall be undertaken by the
duly authorized officer of the DAR.

The duly authorized officer of the DAR leading the implementation of the
decision/order/resolution/CLOA or leading the conduct of the preliminary
agrarian activity shall have the final disposition whether to proceed or
not with the implementation of the decision/order/resolution/CLOA or
conduct of the activity.

Basic Agrarian Reform


Concepts and Principles

What is a CLOA?

A CLOA is a document evidencing ownership of the land granted or


awarded to the beneficiary by DAR, and contains the restrictions and
conditions provided for in RA 6657 and other applicable laws. The
beneficiaries of the CLOAs are called ARBs.

will the cloa be considered as an indefeasible title


one (1) year after its issuance?

Yes. Section 24 of RA 6657, as amended, provides:

“SEC. 24. Award to Beneficiaries. - The rights and


responsibilities of the beneficiaries shall commence from
their receipt of a duly registered emancipation patent
or certificate of land ownership award and their actual
physical possession of the awarded land. Such award
shall be completed in not more than one hundred eighty
(180) days from the date of registration of the title in the

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name of the Republic of the Philippines: Provided, That the


emancipation patents, the certificates of land ownership
award, and other titles issued under any agrarian reform
program shall be indefeasible and imprescriptible after
one (1) year from its registration with the Office of the
Registry of Deeds, subject to the conditions, limitations and
qualifications of this Act, the property registration decree,
and other pertinent laws. The emancipation patents or the
certificates of land ownership award being titles brought
under the operation of the torrens system, are conferred
with the same indefeasibility and security afforded to all
titles under the said system, as provided for by Presidential
Decree No. 1529, as amended by Republic Act No. 6732.
xxx”

Also, as enunciated in the case of Lahora vs. Dayanghirang, CLOAs are


indefeasible upon the lapse of one (1) year from registration, similar to
certificates of title issued in registration proceedings.

When does the ARB’s right to possess the land


commence?

As owner/s of the awarded land, the ARB shall take possession of land
from the time the same is awarded to them through a registered CLOA.

Pending the award of the CLOA, may the ARB till the
land?

Yes. The ARBs have the right of usufruct over the land from the time the
DAR takes constructive or actual possession of the same until the award
of a CLOA52.

52  Section 24 of R.A. 6657, as amended by Section 9 of RA 9700.

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What is “ïnstallation?”

Installation refers to a series of activities spearheaded by the DAR to


achieve the effective possession and peaceful control by ARBs of the
awarded land.

May a person maliciously and intentionally obstruct


the installation of the ARBS?

No. it is a criminal offense under Section 73(D) of R.A. 6657

What are the other prohibited acts under R.A. 6657?

The following are prohibited53:

A. The ownership or possession, for the purpose of circumventing


the provisions of this Act, of agricultural lands in excess of the
total retention limits or award ceilings by any person, natural
or juridical, except those under collective ownership by farmer-
beneficiaries;

B. The forcible entry or illegal detainer by persons who are not


qualified beneficiaries under this Act to avail themselves of the
rights and benefits of the Agrarian Reform Program;

C. Any conversion by any landowner of his/her agricultural land


into any non-agricultural use with intent to avoid the application
of this Act to his/her landholdings and to dispossess his/her
bonafide tenant farmers;

D. The malicious and willful prevention or obstruction by any


person, association or entity of the implementation of the CARP;

E. The sale, transfer, conveyance or change of the nature of lands


outside of urban centers and city limits either in whole or in part

53  Section 73 of RA 6657, as amended by Section 24 of RA 9700.

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after the effectivity of this Act, except after final completion of


the appropriate conversion under Section 65 of Republic Act
No. 6657, as amended. The date of the registration of the deed
of conveyance in the Register of Deeds with respect to titled
lands and the date of the issuance of the tax declaration to the
transferee of the property with respect to unregistered lands, as
the case may be, shall be conclusive for the purpose of this Act;

F. The sale, transfer or conveyance by a beneficiary of the right


to use or any other usufructuary right over the land he/she
acquired by virtue of being a beneficiary, in order to circumvent
the provisions of this Act;

G. The unjustified, willful, and malicious act by a responsible officer


or officers of the government through the following:

1. The denial of notice and/or reply to landowners;

2. The deprivation of retention rights;

3. The undue or inordinate delay in the preparation of claim


folders; or

4. Any undue delay, refusal or failure in the payment of just


compensation;

H. The undue delay or unjustified failure of the DAR, the LBP,


the PARC, the PARCCOM, and any concerned government
agency or any government official or employee to submit the
required report, data and/or other official document involving
the implementation of the provisions of this Act, as required
by the parties or the government, including the House of
Representatives and the Senate of the Philippines as well as
their respective committees, and the congressional oversight
committee created herein;

I. The undue delay in the compliance with the obligation to certify


or attest and/or falsification of the certification or attestation as
required under Section 7 of Republic Act No. 6657, as amended;
and

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J. Any other culpable neglect or willful violations of the provisions


of this Act.

In the case of government officials and employees, a conviction under


this Act is without prejudice to any civil case and/or appropriate
administrative proceedings under civil service law, rules and regulations.
Any person convicted under this Act shall not be entitled to any benefit
provided for in any agrarian reform law or program.

What are the penalties54?

Any person who knowingly or willfully violates the provisions of this Act
shall be punished by imprisonment of not less than one (1) month to not
more than three (3) years or a fine of not less than One thousand pesos
(P1,000.00) and not more than Fifteen thousand pesos (P15,000.00),
or both, at the discretion of the court: Provided, That the following
corresponding penalties shall be imposed for the specific violations
hereunder:

1. Imprisonment of three (3) years and one (1) day to six (6) years or
a fine of not less than Fifty thousand pesos (P50,000.00) and not
more than One hundred fifty thousand pesos (P150,000.00), or
both, at the discretion of the court upon any person who violates
Section 73, subparagraphs (a), (b), (f ), (g), and (h) of Republic Act
No. 6657, as amended; and

2. Imprisonment of six (6) years and one (1) day to twelve (12) years or
a fine of not less than Two hundred thousand pesos (P200,000.00)
and not more than One million pesos (P1,000,000.00), or both, at
the discretion of the court upon any person who violates Section
73, subparagraphs (c), (d), (e), and (i) of Republic Act No. 6657, as
amended.

If the offender is a corporation or association, the officer responsible


therefor shall be criminally liable.

54  Section 74 of RA 6657, as amended by Section 25 of RA 9700.

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May the Police force arrest even without a warrant


those persons who maliciously obstructs the
installatiion proper?

Yes. Under Section 5 of Rule 113 of the Rules of Court, a peace officer or
private person may arrest without warrant:

A. When, in his presence, the person to be arrested has


committed, is actually committing, or is attempting to commit
an offense;

B. When an offense has just been committed and he has


probable cause to believe based on personal knowledge of
facts or circumstances that the person to be arrested has
committed it; xxx

What assistance can DAR give to the ARBs in cases


where their lives are threatened by the installation?

In case the installation would need the assistance of the police or military,
the PARO shall coordinate with the DND-AFP and the DILG-PNP, pursuant
to the Memorandum Order executed by the DAR, DILG and DND.

The ARBs may seek assistance from the DAR when they are facing threats,
harassments, or ejection attempts by the LOs and other parties.

What other forms of assistance can the DAR provide


the ARBs?

The DAR shall assist the ARBs in reporting cases to the police or military, as
well as the filing of the appropriate legal action against those responsible,
if warranted. If dispossessed, the DAR shall assist the ARBs in recovering
the possession of their land.

In cases of failed installation and/or dispossession of FBs due to


landowner harassment, the DAR may refer the matter to the DOJ for the
proper investigation of possible violation of Section 73 of R.A. No. 6657,
as amended.

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What actions can the ARBs do in cases where they are


forcibly driven out of their land?

The ARBs shall take the initiative in filing a criminal case against the
perpetrators, with DAR providing legal assistance to the ARBs. The ARBs
shall be re-installed notwithstanding the pendency and result of the
case filed against the perpetrators conformably with A.O. No.4, Series of
201055.

What is the liability of the landowner who obstructs,


delay or stalls the installation of the ARBs?

The landowner shall be liable under Section 73 (d) of RA 6657, as


amended. The landowner shall also be liable for actual, compensatory,
and moral damages suffered by the ARBs.

What are “standing crops?”

Standing crop refers to harvestable agricultural produce or a portion


thereof normally harvested for such particular crop growing on land at
the same the DAR takes possession thereof pursuant to Sec 16(e), 24 , and
28 of RA 6657.

Crops introduced by the landowner, directly, or through his agents, on


or after the landowner receipt of a notice from the DAR that the land has
already been effectively acquired by the state are deemed to have been
introduced in bad faith and shall not be considered as “standing crop.”

55  Amendment to Administrative Order No. 2, Series of 2009 on the Installation of ARBs
with Registered CLOAs. Please note that this is already incorporated in Sections 110 and
111 of AO 7 Series of 2011 as amended.

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leasehold
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tenancy and leasehold

Introduction

L aws on tenancy have been enacted since the 1930s to regulate the
relationship of the landlord and tenant. These laws and regulations have
since changed. From the Rice Tenancy Act (1933) which institutionalized
the 50-50 per cent sharing between the landlord and the tenant, the
CARP, as amended abolished share tenancy and converted the same into
leasehold. Under the leasehold tenancy, the tenant pays the landholder
a fixed amount in the form of money or agricultural products, or both.
Under a leasehold tenancy agreement, the consideration for the lease
shall not be more than the equivalent of twenty five per cent (25%)
of the average normal harvest during the three (3) agricultural years
immediately preceding or prior to the date the leasehold is established56.

As stated in the prefatory statement of DAR AO 2, Series of 2006:

“The evolution of the law of leasehold has been a


great challenge to both government and civil society
stakeholders as it progressed from one of election and
limited operation to one of compulsion and comprehensive
application.

Republic Act (R.A.) No. 119957 which became operative


on 30 August 1954 was enacted to govern share tenancy.
Section 14 of the said law recognized the rights of the
tenants to choose for leasehold tenancy agreement. R.A.
3844,58 which took effect on 8 August 1963, as amended
by RA 6389,59 finally declared agricultural share tenancy
as contrary to public policy and was, thereby abolished.
Section 4 of RA 6389 automatically converted share

56  DAR AO 2, Series of 2006.


57  Agricultural Tenancy Act, 1954
58  Land Reform Code, 1963
59  An Act Amending R.A. No 3844 or the Land Reform Code, 1971.

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tenancy throughout the country into agricultural leasehold


relationship.

The Comprehensive Agrarian Reform Law (CARL) or RA


No. 6657, which took effect on 15 June 1988, expressly
repealed Section 35 of RA No. 3844, which exempted
fishponds, saltbeds, and lands principally planted to citrus,
coconut, cacao, coffee, durian and other similar permanent
crops. The significant implications of this evolution of the
law are as follows:

1. The abolition of share tenancy now covers all


agricultural landholdings without exceptions;

2. The conversion of share tenancy into leasehold is


mandated by law;

3. Agricultural leasehold can be a preliminary step to


land ownership. Hence, all share-crop tenants were
automatically converted into agricultural lessees
as of 15 June 1988, whether or not a leasehold
agreement has been executed; and

4. Leaseholders’ security of tenure shall be respected


and guaranteed.”

Various events occurred, which exposed farmers, particularly in leasehold


areas, to further exploitation and abuse given the vulnerability of
their status and condition as farmer beneficiaries under the CARP. The
onslaught of Yolanda in 2013 and the recurring problem of cocolisap
infestation plague and devastate farmlands. These disasters cause farmers
to be displaced and suffer losses both to their lives and livelihoods.

In response to these events, the DAR has issued additional guidelines in


the protection of farmers’ rights in leasehold areas.

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tenancy and leasehold

tenancy and leasehold

What are the laws, rules, and regulations on Tenancy


Relations?

• RA 1199, also known as the “Agricultural Tenancy Act of the


Philippines”, which gave tenants the option to elect either share
tenancy or leasehold tenancy arrangements;

• RA 3844, which ordained the “Agricultural Land Reform Code” and


abolished share tenancy on account of being contrary to public
policy;

• RA 6389, also known as the “Code of Agrarian Reform of the


Philippines”, which amended RA 3844, provided for the automatic
conversion of agricultural share tenancy into agricultural leasehold
tenancy, and created the DAR;

• RA 6657, also known as the “Comprehensive Agrarian Reform


Law of 1988”, which mandated the DAR to determine and fix
lease rentals, abolished the exemptions mentioned in Sec. 35
or RA 3844, and made all tenanted agricultural lands subject to
leasehold;

• RA 9700, the Comprehensive Agrarian Reform Program with


Extension and Reforms (CARPER);

• DAR A.O. 2 Series of 2006, the Revised Rules and Procedure


Governing

• Leasehold Implementation in Tenanted Agricultural Lands;

• DAR A.O. 2, Series of 2014, the Rules and Regulations on Leasehold


Operations in Tenanted Coconut Lands Affected by Fortuitous
Events, Natural Disasters or Calamities

• DAR A.O. 8, Series of 2014, the Supplemental Rules and Regulations


for Administrative Order No. 2, Series of 2014 on Leasehold

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Operations in Tenanted Coconut Land Affected by Fortuitous


Events, Natural Disasters, or Calamities2.

What are tenancy relations?

Tenancy relations refer to the relationship between a landholder and a


tenant, wherein the tenant cultivates the land belonging to or possessed
by the landholder. Under the leasehold tenancy system, the tenant pays
the landholder a price certain or ascertainable in produce or in money,
or both.

Who is a tenant?

A tenant shall mean a person who, himself and with the aid available
from within his immediate farm household, cultivates the land belonging
to, or possessed by, another, with the latter’s consent for purposes of
production, paying to the landholder a price certain or ascertainable in
produce or in money or both, under the leasehold tenancy system (A.O.
2, Series of 2006).

Who is a landholder?

A person, natural or juridical, who, either as owner, civil law lessee,


usufructuary, or legal possessor, lets or grants to another the use or
cultivation of his land for a consideration, or price certain or ascertainable,
under the tenancy system.

What are the elements of tenancy relations?

For tenancy relations to exist, the following elements must be present:

A. The parties are the landholder and the tenant or agricultural


lessee.

The “landholder” need not be the actual owner of the land. The
landholder may either be (a) the landowner; or (b) the legal
possessor of the land (e.g. usufructuary or lessee).

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tenancy and leasehold

On the other hand, the tenant or agricultural lessee refers to the


farmer or farmworker who cultivates the land. For purposes of
illustration, he or she will be called the tenant or tenant-farmer.

B. The landholding is agricultural land;

Lands subject of tenancy relations are those utilized for


agricultural purposes.Tenants should be engaged in agricultural
activities, which pertain to the cultivation of the soil, planting
of crops, and growing of fruit trees, including the harvesting of
such farm products, and other farm activities and practices that
are performed by a person, cooperative, or a corporation.

Is there any limitation as to the area


covered by the tenancy relationship?
No. The law does not provide for any limitation with
respect to the size of the land that may be cultivated by
the tenant-farmer.

C. There is consent by the landholder for the tenant-farmer to


cultivate or work on the land;

The landholder may show his agreement or consent either orally


or in writing, expressly or impliedly.

D. The purpose of the landholder and the tenant-farmer in


establishing the tenancy relationship is to bring about
agricultural production;

E. The tenant-farmer should personally cultivate the land;

The tenant-farmer must cultivate the land by himself, or with the


assistance of his immediate farm household or immediate family
members who live with him (e.g. wife or children).

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Who are considered as the tenant’s


“immediate farm household”?

“Immediate farm household” refers to any person who is


a family member of the tenant-farmer, or other persons
who depend on the tenant for support and who usually
help the tenant in the cultivation of the land.

What does “cultivation” mean and


include?

Cultivation is not limited to the plowing and leveling


of the land using agricultural tools. It covers any work
done on the land to make sure that it remains productive
for agriculture. It also includes taking care of the land
and fruits growing on the land, fencing of certain areas,
cleaning the land by picking up and gathering dried
leaves and cutting of grasses.

In coconut lands, “cultivation” includes the act of clean-


ing or clearing the lands, gathering of coconuts, piling
them or grouping the into piles, husking and handling,
as well as the process of turning them into copra, al-
though sometimes with the aid of hired laborers. (Coco-
nut Cooperative Marketing Association, Inc. v. Court of
Appeals, G.R. No. L-4681-83, August 19, 1988)

Thus, even if the tenant does not actually till the soil,
there may still be “cultivation” of the land.

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tenancy and leasehold

F. The payment or consideration is given by the tenant to the


landholder either in the form of a fixed amount of money or
produce, or both.

When the harvest is shared between the landholder and the


tenant or agricultural lessee, there exists a Share Tenancy System.
This is no longer allowed under RA 6657.

What is allowed under existing laws is the Leasehold Tenancy


System, which provides that the tenant will pay a fixed amount
of money or agricultural produce (example: crops or fruits), or
both to the landholder.

What are the characteristics and nature of tenancy


relations?

1. Tenancy relations are in the nature of real obligations. These


obligations attach to the land itself. This means that, even if either
of the landholder or tenant should die, or a contract affecting the
tenancy should lapse, the tenancy relation will still remain valid
and shall continue to take effect, notwithstanding a change of
ownership of the land.

2. Tenancy relations are personal in nature. Strictly speaking, only


the landholder and the tenant can perform or do the obligations
required of them.

What are the two kinds of Tenancy Relations?

Agricultural Tenancy is classified into: (1) Share Tenancy (no longer


allowed under RA 6657); and (2) Leasehold Tenancy.

Share Tenancy exists when two persons agree on a joint undertaking for
agricultural production. One person, referred to as “landholder”, furnishes
or provides the land, while the other person, called the “tenant”, provides
his labor by physically cultivating the land. The produce or products of

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the Share Tenancy Agreement are divided between the landholder and
the tenant. This is no longer allowed under RA 6657.

On the other hand, Leasehold Tenancy exists when a person, called the
tenant, agrees to cultivate an agricultural land owned or legally possessed
by another, called a “landholder.” The tenant only pays the landholder a
fixed amount in the form of money or agricultural product, or in both.
Under a Leasehold Tenancy Agreement, the agricultural products are not
divided between the landholder and the tenant.

What is the difference between Share Tenancy and


Leasehold?

DIFFERENCE SHARE TENANCY LEASEHOLD TENANCY

Manner of Payment Payment is in shares Fixed Rental – the amount


to the Landholder (percentage) – it varies of rent does not change or
depending on the vary despite an increase
amount of harvest in a in the harvest or produce,
given time or period. unless the law provides
otherwise.

Management Joint Management Sole Management on the


– the landholder part of the tenant – Only
and the tenant both the tenant enjoys the
decide and control the management of the land
management because because the production
the production or the or the agricultural
agricultural products products are not divided
are divided between between the tenant and
them. There is a Joint the Landholder. The
Venture. Landholder is required to
surrender possession and
cultivation of the land to
the tenant. In return, the
tenant pays a fixed amount
of rent to the Landholder.

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DIFFERENCE SHARE TENANCY LEASEHOLD TENANCY

Incentive to or Moti- There is less motivation Under this Leasehold Ten-


vation of Production to produce or cultivate ancy
the land on the part of
the tenant. Agreement, the tenant has
a greater motivation to
This is because, produce more agricultural
despite the hard work, products. Any additional
perseverance, and harvest or growth will
determination of the belong to the tenant, be-
tenant, the produce or cause the production is not
agricultural products shared between the tenant
will still be divided and the Landholder.
between the tenant and
the Landholder without In short, the increase in
any active participation harvest will not affect the
or cooperation on the amount of rent because the
part of the Landholder. amount of rent paid by the
tenant is fixed.
Any additional growth
in the harvest will The tenant is also given
also mean additional more freedom to decide on
payment to the the manner of cultivation.
Landholder by the
tenant, because
they share in the
production.

Legal Status Share Tenancy is no The law requires that all


longer allowed by the Agri- cultural Tenancy
law, because it is not between the tenant and
favorable to the tenant. the Landholder should
fall under, or be classified
as, Leasehold Tenancy,
because it is more just and
favorable to the tenant.

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Why was share tenancy prohibited under the law?

A. It did not provide sufficient incentives to farmers;

B. Farmers did not have wide latitude of discretion in the operation


of the land because landholders were allowed to intervene in the
management of the land;

C. The tenancy relation between tenants and landholders is


unjustifiable since landholders are granted shares in the produce
when the production increases despite contributing nothing in
the said increase;

D. There is greater motivation for farmers to increase production


under the leasehold tenancy system.

When did the leasehold tenancy system become


effective?

Crops planted Effectivity date

September 10, 1971 (Sept 10, 1971 is the


effectivity date of RA 6389, which provided for
Rice and corn
the automatic conversion of share tenancy to
leasehold tenancy)

From the time the lessee exercises his option


to elect leasehold system OR on June 15,
Sugarcane 1988, whichever is earlier (June 15, 1988 is the
effectivity date of RA 6657, which expressly
repealed Section 35 of RA 3844)

From the time the lessee exercises his option


Coconut and other perma-
to elect leasehold system OR on June 15, 1988,
nent crops
whichever is earlier

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What are the basic rights and obligations of and


prohibitions on tenants?

A. Rights of Agricultural Lessees:

1. To have possession and peaceful enjoyment of the land;

2. To manage and work on the land in the manner and method


of cultivation and harvest which conform to farm practices;

3. To be entitled to security of tenure on his landholding. He


cannot therefore be ejected from his landholding except for
cause provided for by law;

4. To deal with millers and processors and attend to the issuance


of quedans and warehouse receipts of the produce due him/
her;

5. To exercise the rights of pre-emption and redemption.

B. Right of pre-emption: preferential right to buy the agricultural


landholding under reasonable terms and conditions in case
the agricultural lessor decides to sell the same. If there are
two or more agricultural lessees, each shall be entitled to said
preferential right only to the extent of the area actually cultivated
by him (Sec. 11 R.A. No. 3844).

C. Right of redemption: right to redeem the landholding at a


reasonable price and consideration in case the agricultural lessor
sold the same to a third person without the agricultural lessee’s
knowledge, pursuant to Section 12 of R.A. No. 3844 .Where there
are two or more agricultural lessees, each shall be entitled to
said right of redemption only to the extent of the area actually
cultivated by him.

D. Obligations of Agricultural Lessees:

1. To cultivate and take care of the farm, growing crops, and


other improvements on the land and perform all the work
therein in accordance with proven farm practices;

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2. To inform the agricultural lessor within a reasonable time


of any trespass committed by third persons upon the farm,
without prejudice to his direct action against the trespasser;

3. To take reasonable care of the work animals and farm


implements delivered to him by the agricultural lessor.

4. To keep the farm and growing crops attended to during the


work season; and

5. To pay the lease rental to the agricultural lessor when it falls


due.

E. Prohibitions on Agricultural Lessees:

1. To contract to work additional landholdings belonging to


a different agricultural lessor or to acquire and personally
cultivate an economic family-size farm.

However, said prohibition applies only if: (1) there was no


consent from the original lessor and (2) the land presently
cultivated is already of sufficient size to fully occupy the
lessee or his/her immediate household in the cultivation.

2. To employ a sub-lessee on his landholding.

Nevertheless, in case of illness or temporary incapacity, he


may employ laborers whose services on his landholding shall
be on his account; and

3. Failure of the agricultural lessee to adopt proven farm


practices necessary for the conservation of the land,
improvement of its fertility and increase of its productivity.

This prohibition shall not apply if the agricultural lessee is


financially incapacitated and he cannot avail of any credit
facility.

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What are the basic rights and obligations of and


prohibitions on landholders?

A. Rights of the Landholder:

1. To choose the kind of crop and the seeds which the tenant
shall plant in his holdings; provided, however, that if the
tenant should object, the court shall settle the conflict,
according to the best interest of both parties;

2. To require the use of fertilizers of the kind or kinds shown by


proven farm practices to be adapted to the requirements of
the land;

3. To inspect and observe the extent of compliance on the part


of the tenant with the terms and conditions of their contract;

4. To deal with millers or processors in representation of the


tenant, in cases where the crop has to be sold in processed
for before division, and the tenant has no representative.

B. Obligations of the Landholder:

1. To furnish the tenant an area of not less than one thousand


square meters where the latter may construct his dwelling,
raise vegetables, poultry, pigs, and other animals, and engage
in minor industries, the products of which shall accrue to the
tenant exclusively;

2. To keep the tenant in peaceful possession and cultivation


of his landholdings, which are the subject matter of the
contract.

C. Prohibitions to the Landholder:

1. To not dispossess the tenant of his holdings except for cause;

2. To be responsible for the payment of taxes levied by the


Government upon the land which is the subject-matter of
the contract. It shall be unlawful to make the tenant bear
part or all of the same, either directly or indirectly;

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3. To not require the tenant to bear, directly or indirectly, any


part of the rent,“canon” or other consideration which he, the
former, may be under obligation to pay to a third person for
the use of the land.

What are the grounds for termination of tenancy


relations?

The tenancy relationship is extinguished by the voluntary surrender of


the land by, or the death or incapacity of, the tenant, but his heirs or the
members of his immediate farm household may continue to work the land
until the close of the agricultural year. In case of death of the landholder,
his heir or heirs shall likewise assume his rights and obligations.

The expiration of the period of the contract as fixed by the parties, and
the sale or alienation of the land do not by themselves extinguish the
relationship. In the latter case, the purchaser or transferee shall assume
the rights and obligations of the former landholder in relation to the
tenant.

What are the grounds for ejectment of tenants?

Any of the following shall be sufficient cause for the dispossession or


ejectment of a tenant from his landholdings (Note: there must be final
and executory order from the DARAB or court to make the ejectment
valid and effective):

A. The bona fide intention of the landholder to personally cultivate


the land himself or through the employment of farm machinery
and implements;

B. When the current tenant violates or fails to comply with any of


the terms and conditions of the contract or any of the provisions
of this Act;

C. The tenant’s failure to pay the agreed rental or to deliver the


landholder’s share, except when the tenant’s failure is caused by a
fortuitous event or force majeure;

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tenancy and leasehold

D. When the tenant uses the land for a purpose other than that
specified by agreement of the parties;

E. When the tenant through negligence permits serious injury to the


land which will impair its productive capacity;

F. Conviction by a competent court of a tenant or any member of


his immediate family or farm household of a crime against the
landholder or a member of his immediate family.

ADMINISTRATIVE ORDERS NOS. 02, 2014

What is covered by Administrative Order No. 02 series


of 2014 issued by the DAR?

Administrative Order No. 02 series of 2014 applies to all tenanted coconut


landholdings, with or without a leasehold agreement, which have been
affected by fortuitous events or natural disasters or calamities.

Why was Administrative Order No. 2 series of 2014


issued?

It was issued by the DAR to attend to and improve the economic condition
of the agricultural lessees-tenants on coconut lands devastated by
fortuitous events or natural disasters, and to address and mitigate the
effect of such fortuitous events or natural disasters on landholdings
devoted to coconut production.

What is a fortuitous event?

This refers not only to events that cannot be foreseen, but also those
which are foreseen but unavoidable. It can be an “act of God” or “act of
man. An “act of God” refers to natural calamities or occurrences (examples:
typhoons or floods). On the other hand, an “act of man” refers to man-
made occurrences or events (examples: riots, strikes, and wars).

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What is a natural disaster or calamity?

It is an event that happens because of the processes of nature. It usually


brings harmful effects and economic damage to the community. Natural
disasters include typhoons, floods, storm surges, earthquake, volcanic
eruptions, landslides, and droughts. These events may result to loss of life
and damage to property.

What are heavy-damaged coconut trees?

They refer to coconut trees with broken branches and twisted/broken


fronds60 where at least 50% of the immature or unripe nuts have fallen.
Such trees would need about two (2) to three (3) years to recover
production.

What are totally-damaged coconut trees?

These are trees which are crownless or have fallen down, or where the
fronds are heavily shaken and/or cracked. These are trees which have no
chance of survival.

What is a principal crop?

It is any product/crop raised from the dominant cultivation or principal


use of the land, and harvested on a regular basis.

May a tenant-lessee be ejected due to non-payment


of lease rentals as a result of a fortuitous event or
a natural calamity?

No. The tenant-lessee can only be removed from his/her farm holding
when his/her dispossession has been authorized by an appropriate body
or court in a judgment that is final and executory.

60 Fronds refer to the leaf or leaf-like part of the coconut tree.

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tenancy and leasehold

What are the liabilities of a landholder- lessor


if he/she ejects or removes his/her tenant-lessee
from the land or landholdings without Court
authorization?

If the landholder-lessor ejects or removes his tenant-lessee from the land


or landholdings without proper Court authorization, the landholder-
lessor may be:

A. Fined or imprisoned;

B. Held liable for damages suffered by the agricultural lessee,


in addition to the fine or imprisonment for unauthorized
dispossession;

C. Held liable for payment of attorney’s fees incurred by the lessee;


and

D. Ordered to remunerate any income lost by the lessee while


illegally deprived of his tillage.

The lessee shall be reinstated upon order by the Department of Agrarian


Reform Adjudication Board (DARAB) or a competent Court.

What can a tenant-lessee do then in case of a


fortuitous event or natural calamity?

The tenant-lessee shall renegotiate a new leasehold agreement with


the landowner. The new agreement will specify and list the new terms
and conditions particularly referring to the payment of the lease rental,
planting of crops, and change of crop (if necessary), and the like.

Does this mean that the tenancy relationship has


been extinguished?
No. The new agreement does not mean that the tenancy relationship has
been extinguished or terminated by the fortuitous event. The tenancy
relationship will still continue to take effect despite the fortuitous event.

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Can the landowner-lessor compel the tenant-lessee


to change the kind of crop to be planted?

No. The landowner-lessor can only propose such change to the


tenant-lessee. In case of disagreement as to the proposed change, the
disagreement shall be settled by the Court according to the best interest
of the parties concerned.

The agricultural lessee cannot be ejected as a consequence of a change


in the crop to be planted.

What shall be the value of consideration (rent or


payment) for the lease?

The consideration (rent or payment) for the lease shall not be more than
the equivalent of twenty five per cent (25%) of the average normal harvest
during the three agricultural years immediately preceding or prior to the
date the leasehold was established, after deducting the amount used
for seeds and the cost of harvesting, threshing, loading, hauling, and
processing whichever is applicable.

If the land has been cultivated for less than three years, the initial
consideration shall be based on the average normal harvest of the
preceding year/s when the land was actually cultivated, or on the harvest
of the first year in the case of newly cultivated lands, if that harvest is
normal.

What is a normal harvest?


It is the usual, ordinary, or regular produce or production obtained from
the land when the land is not affected by any fortuitous event or natural
calamity like drought, earthquake, volcanic eruption, and the like.

What is an agricultural year?

It refers to the period of time required for raising a particular agricultural


product. This includes the preparation of the land, sowing, planting,

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and harvesting of crops, and whenever applicable, threshing of said


crops.

However, in case of crops that yield more than one harvest from planting,
the ”agricultural year” shall be the period from the preparation of the land
to the first harvest and thereafter, from harvest to harvest. In both cases,
the period may be shorter or longer than the calendar year.

What shall happen if the coconut trees in the


landholding are heavily- or totally- damaged due to
a fortuitous event or calamity/disaster resulting in
a crop failure?

When the land is being rehabilitated or reconditioned and when the


principal crop is still in the gestation stage or where production has not
reached its average normal harvest, the tenant-lessee shall be allowed to
plant other crops, which shall serve as temporary crops.

Hence, the tenant-lessee shall continue to cultivate the land even if the
coconut trees are destroyed and totally-damaged because of a calamity.

Can the tenant – lessee cut and transport the


coconut trees?

The affected tenant-lessee shall be allowed to cut and transport coconut


trees, provided that the necessary permit to cut shall be obtained and
secured by the tenant-lessee from the Philippine Coconut Authority
(PCA).
A coconut tree may be cut when the tree is seriously disease-infested and
beyond rehabilitation or reconditioning, or when the tree is severely or
seriously damaged by typhoon or lightning.

Who has the authority to issue a permit to cut?


According to RA 8043, the PCA has the exclusive authority to grant a
permit for the cutting of coconut trees. It may, however, be delegated to
the city or municipal mayors by the PCA.

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How can the tenant-lessee obtain a permit to cut?


The tenant-lessee must first secure a certificate under oath from the
barangay captain of the place where the coconut trees to be cut are
located. This certificate shall serve as an oath or promise that the tenant-
lessee has already planted the equivalent number of coconut trees that
he wants to be cut and has applied for to be cut.
The tenant-lessee shall then pay an application fee in the amount of One
Hundred Pesos (P100.00) for every coconut tree intended to be cut. This
application fee shall be payable to the PCA.

What shall be the division of the proceeds of the cut


coconut trees?

The cost of cutting and hauling shall first be deducted from the net
proceeds of the cut coconut trees. The party or person who paid for the
expenses of cutting and hauling shall be reimbursed for his expenses. After
deducting the cost of cutting and hauling, the net proceeds shall then be
divided between the tenant-lessee and landowner-lessor according to
their agreement. However, the share of the tenant-lessee shall never be
less than seventy-five percent (75%) of the net proceeds. This means that
the share of the tenant- lessee may be more than Seventy-Five Percent
(75%) but it cannot be less than Seventy-Five Percent (75%).

Example: The tenant-lessee may have a share of 75% to 100% of the


proceeds of the cut coconut trees. However, anything less than 75% is
prohibited.

What if there is disagreement between the landowner-


lessor and the tenant-lessee?

In case of disagreement, or if the landowner-lessor can no longer be


located, the 75% share in favor of the tenant-lessee shall be imposed. In
this case, the landowner-lessor shall only have a maximum of Twenty-
Five Percent (25%) share of the entire proceeds of the cut coconut trees.

If the landowner is present, the amount shall be given to him/her.


However, if the landowner is not present or refuses to receive his/her

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share, the Municipal Agrarian Reform Program Officer (MARPO) shall


advise the landowner or his/her successor-in-interest (representative of
the landowner) in writing and by registered mail. Furthermore, the 25%
share of the landowner that was not claimed shall be deposited under
landowner’s name in the nearest Land Bank of the Philippines branch in
the locality, within thirty days from the receipt thereof.

Why is the tenant given 75% of the net proceeds while


the landowner gets only 25%?

The 75%-25% ratio in favor of the tenant-lessee is provided for and


created by the law because the tenant-lessee largely contributes to the
production of crops, while the landowner-lessor merely contributes his
land.

Hence, this ratio gives meaning to social justice in favor of the tenant-
lessee.

What will happen if the landholder-lessor sells,


alienates, or transfers the legal possession of the
landholding to another person?

The agricultural leasehold shall not be extinguished or terminated by


a sale, alienation, or transfer made by the landowner-lessor to another
person. The purchaser or transferee shall be subrogated to the rights and
substituted to the obligations of the agricultural lessor.

In short, the leasehold agreement between the landholder-lessor and


tenant- lessee shall continue to take effect, even if the land is sold by the
landholder- lessor to a purchaser or transferee.

What will happen if any of the parties dies or becomes


permanently incapacitated?

If the tenant-lessee dies or becomes permanently incapacitated, the


agricultural leasehold agreement shall continue between the agricultural
lessor and the person who can cultivate the landholding personally.

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The person who will replace the tenant-lessee and continue the leasehold
agreement shall be chosen by the landholder-lessor within one (1) month
from the death or permanent incapacity of the tenant-lessee. The choice
of the landholder-lessor shall be from the following persons:

A. surviving spouse;

B. eldest direct descendant by consanguinity; or


C. next eldest descendant or descendants in the order of their age.

In case the death or permanent incapacity of the lessee occurs during the
agricultural year, the landholder-lessor shall make his choice at the end of
the said agricultural year.

If the landholder-lessor fails to make his choice within the said agricultural
year, the person who will continue as the “substitute tenant-lessee” shall
be in accordance with the order provided above.

In case of death or permanent incapacity of the landholder-lessor, the


leasehold agreement shall bind his legal heirs (like the spouse or children
of the landholder- lessor).

OPERATING PROCEDURES

What are the duties and obligations of the marpo?

A. The MARPO, when urged or requested by either the tenant-


lessee or landowner-lessor, shall validate the information that
the tenanted coconut landholdings are affected by a fortuitous
event or natural calamity/disaster. The MARPO shall immediately
issue a certification that a certain landholding is damaged by a
fortuitous event or natural calamity/disaster.

B. Upon validation, the MARPO shall immediately send an invitation


letter to the tenant-lessee and the landowner-lessor for a
conference. The MARPO shall have the following obligations:

i. To inform the parties that the tenant-lessee has the right to

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continue to exercise his rights under the tenancy relation


despite failure to pay lease rental;

ii. To help formulate a new leasehold agreement according to


existing laws, and rules and regulations. This new leasehold
agreement shall be respected;

iii. To determine or compute the leasehold rental in accordance


with the applicable rules and regulations, in case parties do
not reach an agreement. After that, the MARPO shall issue the
Provisional Leasehold Rental (PLR), which must be followed
by both parties;

iv. In case any of the parties disagrees with the PLR, the same
shall be submitted to the PARAD for the determination of
lease rental;

v. In the meantime, while the PARAD is in the process of


determining the lease rental, the PLR shall be observed and
complied with by the parties until the PARAD is able to fix the
lease rentals.

ADMINISTRATIVE ORDER NO. 08


SERIES OF 2014

What is Administrative Order No. 08 series of 2014?

Administrative Order No. 8 series of 2014 is a set of rules and regulations


issued by the DAR for the benefit of tenant-lessees of coconut lands.

Why was Administrative Order No. 08 series of 2014


issued by the DAR?

It was issued by the DAR to remedy the recent massive infestation of scale
insects, known locally as “Cocolisap”.

In view of the very serious threat and danger these “Cocolisap” insects
have presented to the economic condition and livelihood of the tenant-

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lessees on coconut lands or landholdings, as well as on other lands


or landholdings planted with high-value crops (like coffee, cacao,
mangosteen, etc.), the DAR crafted these rules and regulations to help
and assist the tenant-lessees.

What is covered by Administrative Order No. 08 series


of 2014 issued by the DAR?

These rules and regulations apply to all tenanted coconut landholdings


with or without a leasehold agreement which have been affected by
“Cocolisap”.

AO No. 8 series of 2014 also applies to all tenanted lands or landholdings


planted with high-value crops (like coffee, cacao, mangosteen, etc.)
which are cultivated under coconut trees or near coconut plantations,
with or without a leasehold agreement, and which have been affected by
“Cocolisap”.

What are high-value crops?

High-value crops include vegetables, fruits, spices, and cutflowers. The


table below shows examples of high-value crops. The enumeration is
not exclusive. There are many more examples of high-value crops not
mentioned in the table below, such as patatas, peanut, talong, ubi, upo,
cashew, guapple, jackfruit, papaya, and watermelon.

VEGETABLES FRUITS SPICES CUTFLOWERS


Ampalaya Banana Garlic Orchids

Cabbage Calamansi Ginger (Luya) Chrysanthemum

Gabi Coffee Hot Pepper

Green Leafy Vegetables Citrus Fruits Black Pepper

Kangkong Durian Sweet Pepper

Kamatis Mango

Potato Mangosteen

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If the coconuts or the high-value crops have been


infested or affected by “Cocolisap”, can the tenant-
lessee be dispossessed of and removed from his/
her farmholding because of non-payment of lease
rentals?

No. A tenant-lessee shall not be ejected or removed from his/her


farmholding due to non-payment of lease rentals as a result of the
infestation of the coconuts or high-value crops by “Cocolisap”.

The tenant-lessee can only be removed from his/her farm holding when
his/ her dispossession has been authorized by an appropriate body or
court in a judgment that is final and executory.

What can a tenant-lessee do in case his/her


coconuts or high-value crops have been affected
and infested by “Cocolisap”?

The tenant-lessee shall renegotiate the existing leasehold agreement, or


negotiate a new one, with the landowner. The new agreement will specify
and list the new terms and conditions of their tenancy relationship or
arrangement. These terms and conditions particularly refer to the
payment of the lease rental, planting of crops, and change of crop (if
necessary) and upon mutual agreement.

Does this mean that the tenancy relationship has


been extinguished?
No. The new agreement does not mean that the tenancy relationship
has been extinguished or terminated due to the “Cocolisap” infestation
of the tenant-lessee’s farmholding.

The tenancy relationship will still continue to take effect despite the
“Cocolisap” infestation.

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What shall be the value of consideration (rent or


payment) for the lease?

The consideration (rent or payment) for the lease shall not be more than
the equivalent of twenty five per cent (25%) of the average normal harvest
during the three agricultural years immediately preceding or prior to the
date the leasehold was established, after deducting the amount used
for seeds and the cost of harvesting, threshing, loading, hauling, and
processing, whichever is applicable.

If the land has been cultivated for less than three years, the initial
consideration shall be based on the average normal harvest of the
preceding year/s when the land was actually cultivated, or on the harvest
of the first year in the case of newly cultivated lands, if that harvest is
normal.

What is the rule during rehabilitation of the


landholdings infested and damaged by the scale
insects or “Cocolisap”?

The landholdings or land shall be rehabilitated or reconditioned by re-


planting.

While the landholding or land is being rehabilitated or reconditioned,


and while the crops are in the gestation stage or where production has
not yet recovered to its average normal harvest, the tenant-lessee shall
be allowed to plant other crops on the landholding or land.

Can the tenant-lessee cut and transport the coconut


trees?

Yes. The affected tenant shall be allowed to cut and transport coconut
trees which have been affected by scale insects, in accordance with the
provisions of A.O No. 2, Series of 2014 as previously discussed.

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Untitled
Privately Claimed
Agricultural
Lands (UPALs)
untitled privately claimed agricultural lands (upals)

Introduction

In DOJ Opinion No. 100, Series of 201261, it was mentioned that there
are approximately 26,440 hectares of UPALs affecting an estimated
15, 760 FBs and 1,237 private claimants. The issue on UPALs hinges on
the jurisdiction of DAR and DENR in the coverage and distribution of
these lands under agrarian reform. Furthermore, the clarification on the
jurisdiction of coverage of these lands will guide the LBP in identifying
which lands are compensable and the amount of compensation to be
given to the owner claimant of the UPALs.

In 2014, the DAR and the DENR issued a Joint Administrative Order (JAO)62
setting the guidelines in the disposition of UPALs. The JAO defined the
limits of jurisdiction of DAR and DENR in the coverage of UPALs, and
clarified the rules in the disposition of UPALs by the DAR under the
applicable limit, Specifically, Section 3 of the JAO states the its objectives
as follows:
A. To define the limits of jurisdiction of DAR and DENR in the cover-
age of UPALs under CARP and the disposition thereof in excess
of the applicable titling limit on the ownership of public lands;

B. To clarify the procedure in the validation and documentation of


vested rights of the landowner-claimant; the subdivision survey
and disposition of the areas to be retained by DAR for disposition
under CARP and the excess of the applicable titling limit to be
retained in DENR’s jurisdiction; and

C. To clarify the rules and facilitate the disposition of UPALs by the


DAR under the applicable titling limit.

61  DOJ Opinion No. 100, Series of 2012, dated November 13, 2012 refers to then DAR
Secretary Virgilio delos Reyes’ request for opinion on queries relating to the legal
character of UPALs in excess of twelve (12) hectare titling limit as prescribed in
Commonwealth Act No. 141 (CA 141).
62  Joint DAR-DENR Administrative Order No. 3 Series of 2014 was issued on March 26, 2014.

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untitled privately claimed agricultural lands (upals)

untitled privately claimed


agricultural lands

What is an Untitled Privately-claimed Land (UPAL)?

UPALs are tracts of A&D public agricultural lands claimed by a landowner-


claimant based on recognizable private rights in accordance with existing
laws, rules and regulations (Sec 2.12, JAO 3, Series of 2014).

What Rules govern the disposition of UPALs under the


CARP?

The guidelines for the disposition of UPALs under the CARP are contained
in Joint DAR-DENR Administrative Order No. 3, Series of 2014 (JAO 3,
Series of 2014).

What is the coverage of JAO 3, Series of 2014 (Section


4, JAO 3, Series of 2014)?

JAO 3, Series of 2014 covers all UPALs. UPALS shall be categorized as


follows:

A. Lands covered under R.A. 6657, as amended, initially identified


by the DAR in its database as potential UPALs;

B. Original Land Title (OLT) distributed but not yet documented


(DNYD) lands covered under P.D. No. 27 and E.O. No. 228 where
the documentation is ongoing at the DARMO/DARPO.

C. Other lands that may later be identified jointly by the DAR and
DENR as UPALs.

D. JAO 3 Series of 2014 shall not apply to UPALs already issued


with COD prior to its effectivity. The validity of acts already

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undertaken in accordance with prior rules and procedures on


land acquisition and distribution of private agricultural lands
shall still be governed by the rules and procedures governing at
the time the said acts were undertaken (Section 9, JAO 3 Series
of 2014).

What are the criteria for the determination whether


a person has acquired a recognizable private right
over an untitled landholding (Section 5.1, JAO 3,
Series of 2014)?

A. Continuous occupancy and cultivation by oneself or through


one’s predecessor’s-in-interest for at least thirty (30) years;

B. Classification of the land is alienable and disposable;

C. Payment of the real estate tax thereon; and

D. Absence of any adverse claims on the land

What is the maximum titling limit for the acquisition


and disposition of identified UPALs?

The maximum titling limit of twelve (12) hectares under the 1987
Constitution shall be observed in the acquisition and disposition of
identified UPALs covered under the OLT and the CARP.

However, the applicable titling limits as prescribed under previous


Constitutions (1935 and 1973), shall also be respected provided that
the vested rights of the landowner-claimant over the land had accrued
during the effectivity of these Constitutions.

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untitled privately claimed agricultural lands (upals)

The corresponding titling limits are as follows:

Period when the Applicable


Vested Right of Titling Limit
the Landowner- Operative Law
Claimant Over the (Areas in
land had accrued Hectares)

From May 14, 1935 to Section 2, Article XIII,


24 Has.
January 16, 1973 1935 Constitution

From January 17, 1973 to Section 11, Article XIV,


24 Has.
February 1, 1987 1973 Constitution

From February 2, 1987 to Section 3, Article XII,


12 Has.
Present 1987 Constitution

What are the steps for the disposition of UPALs (Section


6, JAO 3, Series of 2014)?

The main steps are:

A. Validation and Documentation of UPALs;

B. Issuance of NOCs or Acceptance of VOS (for landholdings


voluntarily offered by the landowner-claimant);

C. Conduct of Subdivision Survey

How will the Validation and Documentation of UPALs


proceed (Section 6, 6.1, 6.2, JAO 3, Series of 2014)?

Either the DAR or the DENR shall issue a certification that the subject
landholding is considered as UPAL. The certification shall proceed as
follows:

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1. Untitled tenanted rice and corn lands which have been decreed
as covered under OLT pursuant to PD No. 27 and EO No. 228.

A. By operation of law, these lands are deemed private lands as


of October 21, 1972.

B. The DAR shall issue a Certification that the subject


landholdings are covered under PD No.27 and that the
farmer-tenants are deemed owners of the said land. In issuing
the certification, the DAR will use CARPER-LAD Form No. 2-A.

C. The DAR may request for documents from DENR and other
agencies as may be necessary.

2. UPALs covered under CARP under R.A. 6657, as amended.

A. The concerned DARMO shall submit the list of UPALs to the


DENR-CENR Office for validation and certification.

B. The DENR shall issue a certification that the landowner-


claimant had acquired a vested right on the land under any
of the applicable Philippine Constitutions within the periods
specified in Section 5.2 of JAO 3 Series of 2014 (Please refer to
No. 6 above).The certification shall also state that no title has
been issued by any government agency and court over the
land. In issuing the certification, the DENR will use CARPER-
LAD Form 2-B.

How will the Issuance of NOCs or Acceptance of


VOS (for landholdings voluntarily offered by the
landowner-claimant) proceed(Section 6.2, JAO 3
Series of 2014)?

The DAR shall issue a Notice of Coverage on all UPALs. For purposes of
the issuance of NOC (or Acceptance of VOS), UPALs are categorized as
follows:

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untitled privately claimed agricultural lands (upals)

A. UPALs without NOC:

1. The DAR shall issue an NOC on all UPALs based on the list
of initially-identified UPALs from its database covering the
entire area of the landowner-claimant.

2. In issuing the NOC, the DAR shall use CARPER LAD Form No.
3-D. It shall contain the following statements:

i. That the final area to be acquired and compensated shall


be subject to validation and certification/confirmation of
the DENR as provided under Section 6 of JAO 3, Series of
2014

ii. That the landowner-claimant has the right to select the


exact location of the applicable titling limit and his/her
retention area, if any. In case the landowner-claimant opts
to retain, it shall be taken from the landowner-claimant’s
selected area, which must be compact and contiguous.

B. UPALs with previously issued NOC or Accepted Letter for VOS

Upon receipt of the certification from the DENR-CENRO, the


DAR-PARPO shall notify the landowner-claimant of the following
information using CARPER-LAD Form No. 3-E:

1. The maximum area of the applicable titling limit based on


the certification from the DENR-CENRO;

2. Option of the landowner-claimant to avail of his/her right to


select the exact location of the applicable titling limit and, if
applicable, his retention area which must be compact and
contiguous, to be taken from the applicable titling limit;

3. Failure of the landowner-claimant to choose the location of


the applicable titling limit within thirty (30) days from receipt
of the Letter Advice (CARPER-LAD Form 3-E) shall be deemed
waiver to choose, and upon the recommendation of DAR, the
DENR shall confirm the location of the area of said applicable
titling limit;

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4. Failure of the landowner-claimant to manifest and select


the retention area within (30) days from receipt of such
advice shall also be deemed a waiver to retain and the entire
applicable titling limit shall be processed for acquisition and
distribution by the DAR

C. UPALs with pending VOS application

The DAR shall issue an NOC to all lands offered under VOS without
Acceptance Letter for VOS. The NOC, a CARPER-LAD Form No. 3-D
shall contain the following:

1. The final area to be acquired and compensated shall be


subject to validation and certification/confirmation of the
DENR as provide under Section 6.1 of JAO 3 Series of 2014
(on Validation and Documentation of UPALs);

2. The landowner-claimant has the right to select the exact


location of the applicable titling limit and his/her retention
area, if applicable and in case he/she opts to retain, to be
taken from the said applicable titling limit, which must be
compact and contiguous.

3. Upon receipt of DENR’s certification (CARPER-LAD Form 2-B)


on UPALs with NOCs within the applicable titling limit, the
DAR-PARPO shall issue the Letter Advice to the landowner-
claimant using CARPER-LAD Form No. 3-E, and shall proceed
with the Land Acquisition and Distribution (LAD) process.

How will the Conduct of Subdivision Survey proceed


(Section 6.3, JAO 3 Series of 2014)?

A. The DAR shall conduct the subdivision survey of the entire land.
It will also delineate and segregate the applicable titling limit
from the area in excess of what is allowable.

B. The applicable titling titling limit shall include the following:

1. Retention area, if any;

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untitled privately claimed agricultural lands (upals)

2. Area for distribution to the farmer beneficiaries;

3. Area for the preferred CARP beneficiaries, if any; and

4. Non-CARPable areas such as roads, bridges, etc.

C. The area in excess of the applicable titling limit shall be surveyed


as one (1) lot. This will be designated and indicated on the survey
plan as “Public Land.”

D. The subdivision survey shall be submitted to the DENR for


approval.

What is the process of the disposition of UPALs under


JAO 3 Series of 2014?

A. CARP-covered areas

1. CARP-covered lands shall be acquired and distributed, using


the following guidelines:

i. DAR AO 7, Series of 2011, as amended (Revised Rules and


Procedures Governing the Acquisition and Distribution
of Private Agricultural Lands Under Republic Act 6657, As
Amended);

ii. Joint DAR-DENR MC Nos. 14, 19 and 2003-1;

iii. Other pertinent rules and regulations

2. A Free Patent for the retained area of not more than five (5)
hectares shall be issued by DENR to the landowner-claimant.

3. The landowner-claimant shall be compensated by the LBP,


pursuant to PD 27/EO No. 228, EO No. 407, and RA No. 6657,
as amended, and in accordance with existing policies, rules
and regulations.

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B. Areas in Excess of the Applicable Titling Limit:

1. Areas in excess of the applicable titling limit shall be retained


under DENR’s jurisdiction to be disposed in accordance
with the provisions of CA No. 141, as amended, and other
pertinent rules and regulations.

2. The DARMO may submit other documents to DENR-CENRO


such as the list of actual tillers/occupants, if any, of the excess
area for reference purposes in the disposition of the land

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SOCIALIZED CREDIT
FOR FARMERS:
AGRARIAN
PRODUCTION
CREDIT PROGRAM
(APCP)
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socialized credit for farmers: agrarian production credit program (APCP)

Introduction

O ne of the issues confronting farmers as they become landowners


is making their lands productive. In order to do so, they need
resources, both financial and technical, to sustain and enhance their
crop production. Although the CARPER has mandated the provision of
support services to farmer beneficiaries prior to and after they become
owners, only a few are able to maximize financial and technical assistance
from the government.

Obtaining credit facilities from commercial banks are problematic


for farmer beneficiaries as they demand stringent requirements that
are difficult for farmers to comply with. “In the absence of formal
credit markets, the farmers turn to informal money lenders for their
capitalization requirements63.” Without initial capitalization, socialized
credit, and technical and social support, CLOA holders are vulnerable to
financial, social and climate risks and hazards.

The Agrarian Production Credit Program (APCP) is a program implemented


by the DA, DAR, and the Land Bank of the Philippines (LBP). Its recipients
are ARB organizations (ARBOs) which are not yet eligible to avail of loans
from LBP.64Eligible ARBOs avail of loans under the program and in turn re-
lend to qualified ARBs for purposes of financing agricultural production
projects and activities65.

63  DAR Memorandum Circular 9, Series of 2013.


64  Joint DA-DAR-DENR-LANDBANK Memorandum Circular. Series of 2014.
65  Joint DA-DAR-DENR-LANDBANK Memorandum Circular. Series of 2014.

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socialized credit for farmers: agrarian production credit program (APCP)

AGRARIAn production
credit program (APCP)
What is APCP?

The Agrarian Production Credit Program (APCP) is an initiative of the


government aimed at providing financial and technical assistance to the
farmer beneficiaries of the agrarian reform program. This aims to prepare
the farmers, particularly the agrarian reform beneficiaries (ARBs), in
enhancing the productivity of their land once it was turned over to them.

The APCP allows an ARB through his organization to borrow funds


needed for sustaining his crop production activities, as well as other
farming-related projects.

Who are the target beneficiaries of the APCP?

The APCP caters to farmer beneficiaries all over the country who were
granted lands under PD No. 27, R.A. 6657, R.A. 9700, settlement and other
land tenure improvement programs of the DAR and the DENR, including
CLOA and Community-Based Forest Management Agreement (CBFMA)
holders, and those farmers under leasehold operations.

Farmers from disaster-stricken areas may be prioritized upon approval of


the National Program Management Committee.

What benefits can be availed from the APCP?

The APCP will provide assistance for the farmers in their regular crop
production activities. Aside from that, the program will provide assistance
to implement other income-generating activities, like agricultural
enterprise and livelihood projects; and other support services, such as
marketing, crop insurance, and accessibility to farming facilities.

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The program will also help strengthen the ARBOs and people’s
organizations (PO) as institutions through its capacity building
component, which aims to develop them as eligible conduit that will
ensure viability and profitability of the projects.

Who are the eligible borrowers of this program?


If the organization is an active and registered ARBO, it will be highly
eligible to borrow from the APCP. Other farmer and people’s organizations
are also eligible as long as there are ARB and ARB household members.
Non-government organizations, cooperatives, and rural banks can also
be eligible conduits, as long as they can comply with the requirements.

What are the criteria for eligibility to avail APCP?

C. ARBOs:

1. Be registered;

2. Be operational for at least six (6) months;

3. Have a membership in which majority (50% + 1) is comprised


of ARB or ARB household members

4. Have an established lending policy;

5. Have a management team, composed at least of a manager,


a cashier, and a bookkeeper.

B. Non-ARBO organizations:

1. Be registered;

2. Operational for at least 6 months;

3. Have ARB and ARB household members;

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socialized credit for farmers: agrarian production credit program (APCP)

4. Have an established lending policy;

5. Have a management team, composed at least of a manager,


a cashier, and a bookkeeper.

Are newly registered organizations eligible to


borrow from the APCP?

Yes. However these newly registered organizations should be operational


for at least six (6) months. Their application should be supported with at
least three (3) minutes of the meeting held within 6 months prior to the
loan application.

Can an individual borrow from the APCP?

No. All transactions are coursed through the organizations. The


organization is in charge of the distribution of funds among the members.

Can a member of an ARBO but not an ARB or an ARB


household member, be eligible to a sub-borrower of
the APCP?

No. Only ARBs and ARB household members are allowed to be sub-
borrowers.

What are the requirements for an ARB or an ARB


household member to be an eligible sub-borrower?

If the applicant is the actual tiller of the land and has a land title, then he/
she is an eligible sub-borrower. Farmers whose lands have been covered
by payments to the land owners with certificate of cash deposit and
have been assigned with electronic primary entry book number are also
eligible.

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Can members still avail of the APCP if their organization


has already availed some credit services of the Land
Bank?

Yes, but the members must submit a copy of their previous loan agreement
with Land Bank. This will be further assessed for approval.

What activities/projects can be applied for in the


APCP?

The applicant is allowed to loan for (1) agricultural crop production needs;
(2) agri-enterprise projects; and (3) other livelihood projects related to
crop production.

What kinds of crops are covered by the APCP?

Common crops produced in the country such as rice, corn, sugarcane,


coconut, cacao, and coffee among others, are covered by the program.

What are agri-enterprise and livelihood projects?

Agri-enterprise and livelihood projects, as defined by the DAR, are


any lawful economic activity, aside from crop production, that aims
generate more income for the ARBs. This includes processing, packaging,
transporting, trading, and vending, among others, of agricultural and
forest-based products.

How many projects can an organization apply from


the APCP?

An organization is allowed to loan for a maximum of three (3) projects.

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What is the maximum amount that an organization


can borrow from the APCP?

The LBP will determine the borrower’s total credit requirement for crop
production, depending on the type of crop an organization is producing.
If the said organization is borrowing for an agri-enterprise or livelihood
project, it is allowed to borrow up to a total of one million pesos (Php
1,000,000.00) given that the organization do not have an existing crop
production loan.

If the organization already has an existing loan for crop production, it is


allowed to borrow up to only 10% of its previous loan record.

What are the terms of the loan?

The term of the loan varies depending on what type of project is being
availed of.

For crop production, the term depends on the length of production cycle
of the chosen crop. However, this shall not exceed seven (7) years. There is
also a grace period of three (3) years, depending on the cash flow. Loans
for semi-annual or annual crops such as rice and corn may have a shorter
term than loans applied for plantation crops (coffee, cacao, and coconut).

For working capital loans allotted for agri-enterprise and livelihood, the
term depends on the length of the project’s operating cycle.

For loans applied for acquisition of fixed assets such as tractors and
processing machines, the term shall not exceed five (5) years. Length of
the term depends on the project completion, cash flow, and the condition
of the acquired asset.

What modes of payment are acceptable for the APCP?

There are two ways to pay for the loan: (1) via debit account; and (2) over-
the-counter.

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For the first option, the organization shall open a Land Bank savings
deposit account in the nearest branch. After securing an authority to
debit arrangement with the borrower, the Land Bank will automatically
debit the payment from this account on a regular basis.

Any LBP servicing branch are open for over-the-counter payments.

What is the interest rate?

Interest rate is 8.5% per year for short-term loans, and 9.5% per year for
term loans.

What happens if the borrower fails to pay on time?

There will be a 3% penalty per year based on the unpaid principal and
interest. The period will begin on the day after the due date and will end
once the amount due is settled.

What will be the consequence if the borrower fails


to pay within the seven (7) year term?

There will be a three (3) year collection period starting from the date the
loan amount has turned past due. LBP will send collection letters and
a final demand letter within this period. If the borrower still fails to pay
within the collection period, all the loan documents will be turned over
to the DA.

What is the implication if the documents are turned


over to DA?

Turning over your loan documents does not remove your obligations to
APCP. This will be further assessed by the department.

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Can organizations which fail to pay on time re-


apply for an APCP loan with different terms and
conditions?

Yes, but this could only be done once. This is called loan restructuring
with refinancing. However, not everyone is qualified to avail this privilege.
Members should provide a valid reason for failing to pay on time.

Where can applications for APCP loans be submitted?


Do applicants submit it directly to Land Bank?

No. Loan application will be coursed through PARPO/MARPO, if the


borrowers are CLOA holders; and through the Provincial Environment
and Natural Resources Officer (PENRO) / Community Environment and
Natural Resource Officer (CENRO), if borrowers are CBFMA holders.

What is the procedure for the application of APCP


loans?

Application for APCP follows a step-by-step process:

1. The PARPOs and PENROs will identify the existing ARBOs, POs,
and farmer organizations that are eligible for credit assistance.
They will also map out unorganized ARBs, and prepare them for
availing support services.

2. If the applicant is an eligible conduit, it must prepare a business


and budget plan for the planned project.
The applicant shall prepare a business and budget plan for
agricultural crop production, agri-enterprise, and other livelihood
loan projects. It may also ask assistance from the PARPO. And
with its help, the Provincial Program Beneficiaries Development
Division (PPBDD) or any other bodies shall conduct an assessment
and planning sessions to help the organization determine the
amount of loan needed and prepare the requirements and
documents needed for the application.

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3. The applicant will submit the necessary documents to the


MARPO/PARPO or CENRO/PENRO, including a letter of intent to
apply for a loan under the APCP, and the business and budget
plan.

4. The MARPO/PARPO or CENRO/PENRO will review and validate


the submitted documents. Once approved, they will issue a
certification of qualified ARBs or ARB household members.

5. The MARPO/PARPO or CENRO/PENRO will also issue a certification


on land ownership/tenurial instrument to each CLOA holder or
CBFMA holder members of the organization. If the organization
is an ARBO/PO/FO, it shall also issue a certification attesting that
the applicant is an official member and actual cultivator of the
awarded land.

6. The MARPO/PARPO or CENRO/PENRO will then endorse the


applicant to the Land Bank Lending Center through a certification
with the submitted documentary requirements and business &
budget plan as attachments. The applicant needs to request for
a copy of this certification.

7. The application will then be assessed by the Land Bank. When


approved, the loan will be released on a date depending on the
volume of applications and speed of processing.

What are the documents and write ups needed for


the application?
The following documents shall be prepared by the applicant to be
submitted to the PARPO/MARPO (if borrowers are CLOA holders) or
PENRO/CENRO (if borrowers are CBFMA holders):

1. A certification that the applicant has no outstanding loan for the


same project applied with other institutions;

2. A certificate of the organizations registration;

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3. At least three (3) minutes of a meeting conducted within 6


months before the date of the application;

4. A written narrative or list of the organizations lending systems


and procedures;

5. An audited financial statement for the preceding year, and


interim financial statements for the current year (if applicable)

6. List of the ARB members or their household members with their


corresponding address, work area, farm location and paid-up
share capital duly certified by your organizations secretary and
attested by the chairperson;

7. A certification for each of the ARB member of the organization,


attesting that they are an official member and an actual cultivator
of the awarded land;

8. A certified list of the organizations core management team, with


their bio-data as attachments;

9. A notarized general assembly resolution authorizing the BOD to


borrow a specified amount;

10. A notarized BOD resolution applying for loan and designating


authorized signatories;

11. A business plan and budget plan;

12. A milling report for sugarcane farm for the last 3 years (if
applicable);

13. Copy of marketing contract between the conduit and market


provider (if applicable);

To be prepared by MARPO/PARPO and CENRO/PENRO for submission to


Land Bank:

14. Endorsement by DAR of eligible conduits, with certified list of


eligible ARBs or ARB household members as attachment

15. Endorsement by DENR of list of certified people’s organizations

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Are there available services that can help applicants


in the formulation and implementation of their
business and farm plans?

Yes. The DA, DAR, and DENR offer assistance and support services to help
organizations with the preparation of their business and farm plans.

Specifically, DA will help with the soil analysis and preparation of a


nutrient management plan. This can help the applicant determine the
amount of resources needed for a project. They will also assist throughout
the project by monitoring the farm production and the smooth conduct
of the project.

Meanwhile, DAR and DENR can also provide services that can enhance
the skills and capabilities of the applicant as farmers, such as training
courses, coaching, mentoring assistance, etc.

Technical experts will also provide financial management assistance to


help in the distribution of the received funds.

How long will it take before releasing the loan?

Since the processing of the loan application is on a first-come, first-served


basis, the length of the process depends on the amount of applications
filed. Also, the releasing date will be based on the submitted farm plan
and LBP’s schedule of loan releases.

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REFERENCES

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references
1987 Philippine Constitution

DAR Administrative Order No. 2, Series of 2006, Revised Rules and


Procedure Governing Leasehold Implementation in Tenanted
Agricultural Lands

DAR Administrative Order No. 7, Series of 2011, Revised Rules and


Procedure Governing the Acquisition and Distribution of Private
Agricultural Lands Under Republic Act 6657, as amended

DAR Administrative Order No. 9 Series of 2011, Rules for the Survey and/
or Field Investigation of Landholdings Where the Department of
Agrarian Reform and the Land Bank of the Philippines are Denied
Entry Thereto.

DAR Administrative Order No. 3, Series of 2012, Amendments to the


Revised Rules and Procedure Governing the Acquisition and
Distribution of Private Agricultural Lands under RA 6657 as amended

DAR AO 4 Series of 2014, Amendments to the Revised Rules and Procedures


Governing Acquisition and Distribution of Private Agricultural Lands
Under RA 6657, as amended.

DAR Administrative Order No. 5 Series of 2014, Rules and Procedure


for Preliminary Processing of Land Acquisition and Distribution of
Private Agricultural Lands Upon Revocation by the Department of
Agrarian Reform of Exemption/Exclusion Conversion Order.

DAR Administrative Order No. 10 Series of 2014, Amendment to


Administrative Order No. 7, Series of 2011 With Respect to the
Guidelines Governing the Identification, Screening and Selection

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of Farmworker Beneficiaries for Haciendas, Commercial Farms or


Plantations.

DAR Administrative Order No. 1 Series 2017, Suspension of Administrative


Order Nos. 3, 4, 6 and 7, Series of 2016 and Amendment of Sections
19 and 25 of AO No.3 Series of 2012, Amending Sections 60 and 71
of AO No. 7 Series of 2011.

DAR Administrative Order No. 11 Series of 2014, Procedure for and


Guidelines in the Handling of All Petitions for Coverage Under the
Comprehensive Agrarian Reform Program (CARP).

DAR Administrative Order No. 5, Series of 2015, Amendment to


Administrative Order No. 5, Series of 2014.

DAR Administrative Order No. 5 Series of 2017, New Implementing


Guidelines Governing the Compulsory Acquisition of All Agricultural
Lands with Pending Proceedings or Cases

DAR Memorandum Circular 9, Series of 2013. Guidelines ins the Imple-


mentation of Capacity Development (CAPDEV) Component of the
Agrarian Production Credit Program (APCP).

DOJ Opinion No. 9, Series of 1997. Re DAR’s request for opinion from
DOJ on whether or not the ten year schedule of implementation
specified in Section 5 of RA 6657 is mandatory or directory.

DOJ Opinion No. 100, Series of 2012. Re DAR’s request for opinion from
DOJ relating to the legal character of UPALs in excess of twelve (12)
hectare titling limit as prescribed in Commonwealth Act No. 141 (CA
141).

DOJ Opinion No 59, Series of 2013. Re DAR’s request for opinion from
DOJ on whether or not the DAR may continue its land acquisition
and distribution proceedings beyond June 30, 2014 where Notices

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of Coverage have already been issued and whether or not Congress


may appropriate funds for the full implementation of CARPER
beyond the said date.

DOJ Opinion No. 60, Series of 2013. Re DAR’s request for opinion to DOJ
whether the Support Services Office created under Section 35 of
RA 6657 and the Agrarian Justice Delivery functions of the DAR
as expressed in Sections 48 and 50 of RA 6657 may continue its
operation beyond June 30, 2014

Joint DAR-DENR Administrative Order No. 3 Series of 2014, Guidelines in


the Disposition of Untitled Privately Claimed Agricultural Lands.

Joint DA-DAR-DENR-LANDBANK Memorandum Circular. Series of 2014,


Amended Implementing Rules and Regulations (IRR) of the Agrari-
an Production Credit Program (APCP).

Presidential Decree No. 27, Decreeing the Emancipation of Tenants from


the Bondage of the Soil, Transferring to Them the Ownership of
the land They Till and Providing the Instruments and Mechanism
Thereof.

Queries on CARPER Beyond 2014, Legal Notes of Rep. Kaka Bag-ao, 2012.

Republic Act No. 1199, Agricultural Tenancy Act, 1954.

Republic Act No. 3844, An Act To Ordain The Agricultural Land Reform
Code And To Institute Land Reforms In The Philippines, Including The
Abolition Of Tenancy And The Channeling Of Capital Into Industry,
Provide For The Necessary Implementing Agencies, Appropriate
Funds Therefor And For Other Purposes, 1963.

Republic Act No.6389, An Act Amending Republic Act Numbered Thirty-


Eight Hundred And Forty-Four, As Amended, Otherwise Known As
The Agricultural Land Reform Code, And For Other Purposes, 1971.

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Republic Act No. 6657, Comprehensive Agrarian Reform Law of 1988.

Republic Act No. 8532, An Act Strengthening Further the Comprehensive


Agrarian Reform Program (CARP), by Providing Augmentation Fund
Therefor, Amending for the Purpose Section 63 of Republic Act No.
6657, Otherwise Known As the CARP Law of 1988

Republic Act No. 9700, An Act Strengthening The Comprehensive


Agrarian Reform Program (Carp), Extending The Acquisition And
Distribution Of All Agricultural Lands, Instituting Necessary Reforms,
Amending For The Purpose Certain Provisions Of Republic Act No.
6657, Otherwise Known As The Comprehensive Agrarian Reform
Law Of 1988, As Amended, And Appropriating Funds Therefor.

Revised Philippine National Police Operational Procedure, December


2013

Online Resouces:

www.acpc.gov.ph/agrarian-production-credit-program-apcp

http://www.dar.gov.ph/notice-of-coverage, August 31,2017.

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annex:

Administrative order no. 03


series of 2017

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The People’s Campaign for Agrarian
Reform Network, Inc.
AR Now!

AR Now! is an advocacy and campaign


center for the promotion of agrarian
reform and sustainable development. AR
Now! mission is to engage government to
seriously implement agrarian reform by
waging nationally coordinated campaigns
for pro-agrarian reform and sustainable
rural development (ARRD) policies and
programs, and to bring back ARRD as
a national agenda and development
imperative. Conduct of national campaigns
on agrarian reform and agrarian reform
issues,support to local agrarian reform
initiatives, conduct of policy research,
analysis and advocacy, conduct of
legislative lobbying, documentation of
cases and experiences on agrarian reform
implementation and issues as well as
networking and coalition building are also
part of the mission.

AR Now! vision is to achieve peasant


empowerment, agrarian and aquatic
reform and rural development, sustainable
agriculture/ fisheries and food security,
gender sensitivity and equality of men and
women, and appropriate and adequate
support services.

---

AR Now! Chair:

KAISAHAN tungo sa Kaunlaran ng


Kanayunan at Repormang Pansakahan
38-B Mapagsangguni St. Sikatuna Village,
Quezon City 1101 Philippines
Tel: (+632) 433 0760, Fax: (+632) 921 5436
Email: kaisahan@kaisahan.com.ph
Website: www.kaisahan.com.ph

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