Agra

| Jiggy Mijares Marquez

covered land, and is commonly referred to as
CARPable land.
Q and A: The Comprehensive Agrarian
Reform Program 4. How much land is subject to land
reform?
1. What is CARP? What is CARPER?
An estimated 7.8 million hectares of land is
CARP stands for the Comprehensive covered by CARP.
Agrarian Reform Program, a government
initiative that aims to grant landless farmers 5. How much land has been acquired and
and farmworkers ownership of agricultural distributed so far?
lands. It was signed into law by President
Corazon C. Aquino on June 10, 1988, and was As of December 31, 2013, the government has
scheduled to have been completed in 1998. On acquired and distributed 6.9 million hectares
the year of its deadline, Congress enacted a of land, equivalent to 88% of the total land
law (Republic Act No. 8532) appropriating subject to CARP.
additional funds for the program and
extending the automatic appropriation of ill-
6. How much land was distributed to
gotten wealth recovered by the Presidential
beneficiaries under this administration?
Commission on Good Governance (PCGG) for
CARP until 2008.
From July 2010 to December 2013, the
administration has distributed a total of
CARPER, or the Comprehensive Agrarian
751,514 hectares, or 45% of the total
Reform Program Extension with Reforms, is
landholdings to be distributed to the farmer
the amendatory law that extends yet again the
beneficiaries left under this administration.
deadline of distributing agricultural lands to
farmers for five years. It also amends other
provisions stated in CARP. CARPER was From this, DAR has distributed 412,782
signed into law on August 7, 2009. hectares and DENR has already distributed
338,732 hectares.
2. Who are the beneficiaries of CARP?
7. How much land does the government
still need to acquire for distribution from
Landless farmers, including agricultural
2014 to 2016?
lessees, tenants, as well as regular, seasonal
and other farmworkers. The Department of
Agrarian Reform (DAR) identifies and screens DAR still needs to acquire 771,795 hectares,
potential beneficiaries and validates their while the DENR still needs to acquire 134,857
qualifications. For example, to qualify, you hectaresa total of 906,652 hectares.
must be at least 15 years old, be a resident of
the barangay where the land holding is 8. How will the government acquire the
located, and own no more than 3 hectares of landholdings?
agricultural land.
There are different modes of acquiring and
3. What are the government offices distributing public and private agricultural
involved in the program? lands. For private lands under compulsory
acquisition, the DAR will issue Notices of
Many agencies are involved in the Coverage to the original owners of the
implementation of CARP. The lead agencies landholdings. Notices of Coverage will be
are the Department of Agrarian Reform issued to most of the landholdings by June 30,
(DAR), and the Department of Environment 2014.
and Natural Resources (DENR). They are in
charge of the identification and distribution of

 Agra | Jiggy Mijares Marquez

9. What is a notice of coverage? In some cases, technical descriptions in the
land titles (which determine the boundaries of
A Notice of Coverage (NOC) is a letter the land) were found to be erroneous and had
informing a landowner that his/her land is to be corrected. Some titles were destroyed,
covered by CARP, and is subject to acquisition and therefore, had to be reissued by
and distribution to beneficiaries. It likewise undergoing a court process, similar to filing a
informs the landowner of his/her rights under case. Potential beneficiaries argued among
the law, including the right to retain 5 themselves on who should or should not be
hectares. qualified as beneficiaries; these disputes had
to be mediated or resolved by the
10. After the period of time allotted for government. In other cases, landowners may
CARPER by law is passed (August 7, 2009 petition that their lands be exempted or
to June 30, 2014), how will the remaining excluded from CARP coverage, and some of
landholdings, which are subject to these petitions have gone up to the Supreme
compulsory acquisition, be distributed to Court.
the beneficiaries?
Smaller parcels of land (5 hectares to 10
As long as Notices of Coverage are issued on hectares) were only processed in the last year
or before June 30, 2014, land distribution to of implementation of CARPER (July 1, 2013 to
beneficiaries shall continue until completion, June 30, 2014). Past efforts focused on bigger
according to Section 30 of CARPER (R.A. No. parcels of land, which involved more
9700). Meaning, even after CARPERs paperwork to process. Now that efforts are
deadline, the law itself mandates the focused on smaller but more numerous cuts of
concerned agencies to finish distributing land, there are more claim folders to process
lands to the beneficiaries up to the very last and distribute.
hectare. This assures to the farmers that the
process for receiving their land will continue From the Presidential Communications
(e.g., beneficiary identification, survey, Development and Strategic Planning Office
generation, and registration of land titles to and the Department of Agrarian Reform
beneficiaries).

11. How does DAR intend to deal with the
remaining landholdings (771,795
hectares) to be distributed?

DAR projects that it will be distributing
187,686 hectares in 2014; 198,631 hectares in
2015; and 385,478 hectares in 2016.

Of the remaining CARPable landholdings to be
distributed, 551,275 hectares are considered
workable, while 220,520 hectares are tagged

as problematic. Solutions for problematic
landholdings will be worked out.

12. What were the challenges encountered
in the course of acquiring and distributing
private lands?

There were numerous problems in

implementing the land reform program:

 Agra | Jiggy Mijares Marquez

Land reform in the Philippines has long of the now-American colony, and long hostile
been a contentious issue rooted in the to Catholicsnegotiated a settlement with the
Philippines's Spanish Colonial Period. Some Church handing over its land.
efforts began during the American Colonial
The 1902 Philippine Organic Act was a
Period with renewed efforts during the
constitution for the Insular Government, as
Commonwealth, following independence,
the U.S. civil administration was known. This
during Martial Law and especially following
act, among other actions, disestablished the
the People Power Revolution in 1986. The
Catholic Church as the state religion. The
current law, the Comprehensive Agrarian
United States government, in an effort to
Reform Program, was passed following the
resolve the status of the friars, negotiated
revolution and recently extended until 2014
with the Vatican. The church agreed to sell the
friars' estates and promised gradual
Much like the Philippines and other Spanish substitution of Filipino and other non-Spanish
colonies in the Americas, the Spanish priests for the friars. It refused, however, to
settlement in the Philippines revolved around withdraw the religious orders from the
the encomienda system of plantations, known islands immediately, partly to avoid offending
as haciendas. As the 19th Century progressed, Spain. In 1904 the administration bought for
industrialization and liberalization of trade $7.2 million the major part of the friars'
allowed these encomiendas to expand holdings, amounting to some 166,000
their cash crops, establishing a strong sugar hectares (410,000 acres), of which one-half
industry in the Philippines, especially in was in the vicinity of Manila. The land was
the Visayan island of Negros. eventually resold to Filipinos, some of them
tenants but the majority of them estate
owners.[2]
American period
Commonwealth Period
The United States of America took possession
of the Philippines following the Spanish During the American Colonial Period, tenant
American War in 1898 and after putting down farmers complained about
the subsequent rebellion in the Philippine the sharecropping system, as well as by the
American War. The Second Philippine dramatic increase in population which added
Commission, the Taft Commission, viewed economic pressure to the tenant farmers'
economic development as one of its top three families.[3] As a result, an agrarian
goals.[1] In 1901 93% of the islands' land area reform program was initiated by the
was held by the government and William Commonwealth. However, success of the
Howard Taft, Governor-General of the program was hampered by ongoing clashes
Philippines, argued for a liberal policy so that between tenants and landowners.
a good portion could be sold off to American An example of these clashes includes one
investors.[1] Instead, the United States initiated by Benigno Ramos through
Congress, influenced by agricultural interests his Sakdalista movement,[4] which advocated
that did not want competition from the tax reductions, land reforms, the breakup of
Philippines, in the 1902 Land Act, set a limit of the large estates or haciendas, and the
16 hectares of land to be sold or leased to severing of American ties. The uprising, which
American individuals and 1,024 hectares to occurred in Central Luzon in May 1935,
American corporations.[1] This and a claimed about a hundred lives
downturn in the investment environment
discouraged the foreign-owned plantations Rice Share Tenancy Act of 1933
common in British Malaya, the Dutch East
When the Philippine Commonwealth was
Indies, and French Indochina.[1]
established, President Manuel L.
Further the U.S. Federal Government faced the Quezon implemented the Rice Share Tenancy
problem of much of the private land being Act of 1933.[5] The purpose of this act was to
owned by the Roman Catholic Church and regulate the share-tenancy contracts by
controlled by Spanish clerics. The American establishing minimum standards.[5] Primarily,
governmentofficially secular, hostile to the Act provided for better tenant-landlord
continued Spanish control of much of the land relationship, a 5050 sharing of the crop,

 Agra | Jiggy Mijares Marquez

regulation of interest to 10% per agricultural In 1946, shortly after his induction to
year, and a safeguard against arbitrary Presidency, Manuel Roxas proclaimed the Rice
dismissal by the landlord.[5] The major flaw of Share Tenancy Act of 1933 effective
this law was that it could be used only when throughout the country.[5] However problems
the majority of municipal councils in a of land tenure continued. In fact these became
province petitioned for it.[5] Since landowners worse in certain areas.[5] Among the remedial
usually controlled such councils, no province measures enacted was Republic Act No. 1946
ever asked that the law be applied. Therefore, likewise known as the Tenant Act which
Quezn ordered that the act be mandatory in provided for a 7030 sharing arrangements
all Central Luzon provinces.[5] However, and regulated share-tenancy contracts.[5] It
contracts were good only for one year. By was passed to resolve the ongoing peasant
simply refusing the renew their contract, unrest in Central Luzon.[5]
landlords were able to eject tenants. As a
As part of his Agrarian Reform agenda,
result, peasant organizations agitated in vain
President Elpidio Quirino issued on 23
for a law that would make the contract
October 1950 Executive Order No. 355 which
automatically renewable for as long as the
replaced the National Land Settlement
tenants fulfilled their obligations.[5]
Administration with Land Settlement
In 1936, this Act was amended to get rid of its Development Corporation (LASEDECO) which
loophole, but the landlords made its takes over the responsibilities of the
application relative and not absolute. Agricultural Machinery Equipment
Consequently, it was never carried out in spite Corporation and the Rice and Corn Production
of its good intentions. In fact, by 1939, Administration.
thousands of peasants in Central Luzon were

being threatened with wholesale
eviction.[5] By the early 1940s, thousands of Ramon Magsaysay administration
tenants in Central Luzon were ejected from
their farmlands and the rural conflict was To amplify and stabilize the functions of the
more acute than ever.[5] Economic Development Corps (EDCOR),
Therefore, during the Commonwealth period, President Ramon Magsaysay worked[7] for the
agrarian problems persisted.[5] This motivated establishment of the National Resettlement
the government to incorporate a cardinal and Rehabilitation Administration
principle on social justice. Dictated by the (NARRA),[7]which took over from the EDCOR
social justice program of the government, and helped in the giving of some sixty-five
expropriation of landed estates and other thousand acres to three thousand indigent
landholdings commenced. Likewise, the families for settlement purposes.[7]Again, it
National Land Settlement Administration allocated some other twenty-five thousand to
(NSLA) began an orderly settlement of public a little more than one thousand five hundred
agricultural lands. At the outbreak of the landless families, who subsequently
Second World War, major settlement areas became farmers.[7]
containing more than 65,000 hectares were As further aid to the rural people,[7] the
already established.[5] president established the Agricultural Credit
and Cooperative Administration (ACCFA). The
idea was for this entity to make available rural
Roxas Administration credits. Records show that it did grant, in this
When the Philippines gained its wise, almost ten million dollars. This
independence in 1946, much of the land was administration body next devoted its
held by a small group of wealthy landowners. attention to cooperative marketing.[7]
There was much pressure on the Along this line of help to the rural areas,
democratically elected government to President Magsaysay initiated in all
redistribute the land. At the same time, many earnestness the artesian wells campaign. A
of the democratically elected office holders group-movement known as the Liberty Wells
were landowners themselves or came from Association was formed and in record time
land-owning families. managed to raise a considerable sum for the

 Agra | Jiggy Mijares Marquez

construction of as many artesian wells as 1. To establish owner-cultivatorship
possible. The socio-economic value of the and the economic family-size farm as
same could not be gainsaid and the people the basis of Philippine agriculture
were profuse in their gratitude.[7] and, as a consequence, divert
landlord capital in agriculture to
Finally, vast irrigation projects, as well as
industrial development;
enhancement of the Ambuklao Power plant
and other similar ones, went a long way 2. To achieve a dignified existence for
towards bringing to reality the rural the small farmers free from
improvement program advocated by pernicious institutional restraints
President Magsaysay.[7] and practices;
3. To create a truly viable social and
President Ramn Magsaysay enacted the economic structure in agriculture
following laws as part of his Agrarian Reform conducive to greater productivity
Program: and higher farm incomes;
4. To apply all labor laws equally and
Republic Act No. 1160 of 1954 without discrimination to both
Abolished the LASEDECO and established industrial and agricultural wage
the National Resettlement and earners;
Rehabilitation Administration (NARRA) 5. To provide a more vigorous and
to resettle dissidents and landless systematic land resettlement
farmers. It was particularly aimed at program and public land
rebel returnees providing home lots and distribution; and
farmlands in Palawan and Mindanao. 6. To make the small farmers more
Republic Act No. 1199 (Agricultural independent, self-reliant and
Tenancy Act of 1954) Governed the responsible citizens, and a source of
relationship between landowners and genuine strength in our democratic
tenant farmers by organizing share- society.
tenancy and leasehold system. The law
provided the security of tenure of and, in pursuance of those policies,
tenants. It also created the Court of established the following
Agrarian Relations.
Republic Act No. 1400 (Land Reform Act 1. An agricultural leasehold system to
of 1955) Created the Land Tenure replace all existing share tenancy
Administration (LTA) which was systems in agriculture;
responsible for the acquisition and 2. A declaration of rights for agricultural
distribution of large tenanted rice and labor;
corn lands over 200 hectares for 3. An authority for the acquisition and
individuals and 600 hectares for equitable distribution of agricultural
corporations. land;
Republic Act No. 821 (Creation of 4. An institution to finance the
Agricultural Credit Cooperative Financing acquisition and distribution of
Administration) Provided small farmers agricultural land;
and share tenants loans with low interest 5. A machinery to extend credit and
rates of six to eight percent.[6] similar assistance to agriculture;
6. A machinery to provide marketing,
management, and other technical
Macapagal administration services to agriculture;
Land Reform Code The Agricultural Land 7. A unified administration for
Reform Code (RA 3844) was a formulating and implementing
major Philippine land reform law enacted in projects of land reform;
1963 under President Diosdado Macapagal. 8. An expanded program of land
The code declared that it was State policy capability survey, classification, and
registration; and

 Agra | Jiggy Mijares Marquez

9. A judicial system to decide issues Comprehensive Agrarian Reform Law." The
arising under this Code and other law paved the way for the redistribution of
related laws and regulations. agricultural lands to tenant-farmers from
landowners, who were paid in exchange by
the government through just
Marcos administration compensation but were also allowed to retain
On 10 September 1971, President Ferdinand not more than five hectares of
E. Marcos signed the Code of Agrarian Reform land.[9] However, corporate landowners were
of the Philippines into law which established also allowed under the law to "voluntarily
the Department of Agrarian Reform, divest a proportion of their capital stock,
effectively replacing the Land Authority. equity or participation in favor of their
workers or other qualified beneficiaries", in
In 1978, the DAR was renamed the Ministry of lieu of turning over their land to the
Agrarian Reform. government for redistribution.[10] Despite the
On 26 July 1987, following the People Power flaws in the law, the Supreme Court upheld its
Revolution, the department was re-organized constitutionality in 1989, declaring that the
through Executive Order (EO) No. 129-A. implementation of the comprehensive
agrarian reform program (CARP) provided by
In 1988, the Comprehensive Agrarian Reform the said law, was "a revolutionary kind of
Law created the Comprehensive Agrarian expropriation."[11]
Reform Program which is also known as
CARP. Despite the implementation of CARP, Aquino
was not spared from the controversies that
eventually centered on Hacienda Luisita, a
Corazon Aquino administration 6,453-hectare estate located in the Province
of Tarlac, which she, together with her
President Corazon Aquino envisioned
siblings inherited from her father Jose
agrarian and land reform as the centerpiece of
Cojuangco (Don Pepe).[12]
her administration's social legislative agenda.
However, her family background and social Critics argued that Aquino bowed to pressure
class as a privileged daughter of a wealthy and from relatives by allowing stock
landed clan became a lightning rod of redistribution under Executive Order 229.
criticisms against her land reform agenda. On Instead of land distribution, Hacienda Luisita
22 January 1987, less than a month before the reorganized itself into a corporation and
ratification of the 1987 Constitution, agrarian distributed stock. As such, ownership of
workers and farmers marched to the historic agricultural portions of the hacienda were
Mendiola Street near the Malacaan Palace to transferred to the corporation, which in turn,
demand genuine land reform from Aquino's gave its shares of stocks to farmers.[12]
administration. However, the march turned
The arrangement remained in force until
violent when Marine forces fired at farmers
2006, when the Department of Agrarian
who tried to go beyond the designated
Reform revoked the stock distribution scheme
demarcation line set by the police. As a result,
adopted in Hacienda Luisita, and ordered
12 farmers were killed and 19 were injured in
instead the redistribution of a large portion of
this incident now known as the Mendiola
the property to the tenant-farmers. The
massacre. This incident led some prominent
Department stepped into the controversy
members of the Aquino Cabinet to resign their
when in 2004, violence erupted over the
government posts.
retrenchment of workers in the Hacienda,
In response to calls for agrarian reform, eventually leaving seven people dead.[12]
President Aquino issued Presidential

Proclamation 131 and Executive Order 229 on
22 July 1987, which outlined her land reform Ramos administration
program, which included sugar lands. In 1988, President Fidel V. Ramos speeded the
with the backing of Aquino, the new Congress implementation of the Comprehensive
of the Philippines passed Republic Act No. Agrarian Reform Program (CARP) of former
6657, more popularly known as the President Corazon Aquino in order to meet

 Agra | Jiggy Mijares Marquez

the ten-year time frame. However, there were 456 and renamed the Department of Land
constraints such as the need to firm up the Reform back to Department of Agrarian
database and geographic focus, generate Reform, since "the Comprehensive Agrarian
funding support, strengthen inter-agency Reform Law goes beyond just land reform but
cooperation, and mobilize implementation includes the totality of all factors and support
partners, like the non-government services designed to lift the economic status of
organizations, local governments, and the the beneficiaries."[14]
business community.[5] In 1992,
When President Noynoy Aquino took office,
the government acquired and distributed 382
there was a renewed push to compete
hectares of land with nearly a quarter of a
the agrarian reform. The Department of
million farmer-beneficiaries. This constituted
Agrarian Reform adopted a goal of distributed
41% of all land titles distributed by
all CARP-eligible land by the end of Pres.
the Department of Agrarian Reform (DAR)
Aquino's term in 2016.[15] As of June 2013,
during the last thirty years. But by the end of
694,181 hectares remained to be distributed,
1996, the DAR had distributed only 58.25% of
according to DAR.[15]
the total area it was supposed to cover. From
January to December 1997, the DAR Hacienda Luisita, owned by
distributed 206,612 hectares. That year, since the Cojuangco family, which includes the late
1987, the DAR had distributed a total of former President Corazn C. Aquino and her
2.66 million hectares which benefited almost son, current President Aquino, has been a
1.8 million tenant-farmers.[5] notable case of land reform.[16]
One major problem that the Ramos The Comprehensive Agrarian Reform
administration faced was the lack of funds to Program is the current law under which land
support and implement the program.[5] The reform is conducted. Large land-holdings are
Php50 million, allotted by R.A. No. 6657 to broken up and distributed to farmers and
finance the CARP from 1988 to 1998, was no workers on that particular hacienda. The
longer sufficient to support the program. To crops grown on such haciendas include sugar
address this problem, Ramos signed R.A. No. and rice. Each farmer is giving a "certificates
8532 to amend the Comprehensive Agrarian of land ownership award" or CLOA for their
Reform Law (CARL) which further new property.[15] Under the law, a landowner
strengthened the CARP by extending the can only retain 5 hectares, regardless of the
program to another ten years.[5] Ramos signed size of the hacienda.[15] Conflict can arise
this law on 23 February 1998 a few months between previous landowners and
before the end of Ramos' term.[5] "beneficiaries" and between competing
farmers' groups that have conflicting

claims.[15]
Arroyo administration
In December 2008, CARP expired and the
On 27 September 2004, President Gloria following year CARPer was passed. CARPer
Macapagal-Arroyo, signed Executive Order stands for "Comprehensive Agrarian Reform
No. 364, and the Department of Agrarian Program Extension with Reforms". CARPer
Reform was renamed to Department of Land expires in 2014.
Reform. This EO also broadened the scope of
the department, making it responsible for all Republic Act No. 1160 of 1954, Abolished
land reform in the country. It also placed the LASEDECO and established the National
Philippine Commission on Urban Poor (PCUP) Resettlement and Rehabilitaition
under its supervision and control. Recognition Administration (NARRA) to resettle dissidents
of the ownership of ancestral domain by and landless farmers. It was particularly
indigenous peoples also became the aimed at rebel returnees providing home lots
responsibility of this new department, under and farmlands in Palawan and Mindanao
the National Commission on Indigenous
Peoples (NCIP).[13]
[REPUBLIC ACT NO. 1160]
On 23 August 2005, President Gloria
Macapagal Arroyo signed Executive Order No.

 Agra | Jiggy Mijares Marquez

AN ACT TO FURTHER IMPLEMENT THE FREE than July thirty-one, a program of activities for
DISTRIBUTION OF AGRICULTURAL LANDS OF the whole fiscal year together with the budget
THE PUBLIC DOMAIN AS PROVIDED FOR IN of expenditures to support such a program for
COMMONWEALTH ACT NUMBERED SIX the final approval of the President of the
HUNDRED AND NINETY-ONE, AS AMENDED, Philippines.
TO ABOLISH THE LAND SETTLEMENT AND
DEVELOPMENT CORPORATION CREATED POWERS
UNDER EXECUTIVE ORDER NUMBERED
THREE HUNDRED AND FIFTY-FIVE, DATED SEC. 4. General powers.NARRA is hereby
OCTOBER TWENTY-THREE, NINETEEN authorized to adopt, alter, and use an official
HUNDRED AND FIFTY, AND TO CREATE IN seal; to make contracts, to lease or own real
ITS PLACE THE NATIONAL RESETTLEMENT and personal property, and to sell or
AND REHABILITATION ADMINISTRATION, otherwise dispose of the same; to sue and be
AND FOR OTHER PURPOSES. sued; and to make such regulations as are
necessary to execute the functions vested in it
Be it enacted by the Senate and House of by this Act.
Representatives of the Philippines in Congress
assembled: SEC. 5. Special powers.NARRA is authorized:

SECTION 1. It is hereby declared to be the (1) To give land, subject to the qualifications,
policy of Congress to help speed up the free requirements and conditions prescribed by
distribution of agricultural lands of the public the Public Land Act and under the terms and
domain to landless tenants and farm workers conditions as may be defined by the Board of
who are citizens of the Philippines and to Directors, to landless citizens of the
encourage migration to sparsely populated Philippines who need, deserve and are
regions pursuant to the fundamental policy of capable of tilling the land,
the government to promote the level of
production, employment and living standards
(2) To facilitate the settlement, acquisition
of the people.
and cultivation of agricultural lands;(3) To
acquire by purchase such agricultural
SEC. 2. National Resettlement and portions of landed estates as may be directed
Rehabilitation Administration.In furtherance by the President of the Philippines for the
of the above, policy there is hereby created a prosecution of the policy stated in section one
corporation to be known as National of this Act.
Resettlement and Rehabilitation
Administration hereafter referred to as
NARRA to perform under the supervision (4) To reclaim swamps and marshes, obtain
title thereto where feasible, and to support
and control of the President of the Philippines,
through the Office of Economic Coordinator them into agricultural lands for settlement;
all the duties and functions of the Bureau of
Lands as provided in Commonwealth Act (5) To promote community life in the
Numbered Six hundred and ninety-one as settlements;
amended, and such other duties as hereinafter
specified in this Act. It shall be headed by a (6) To borrow money from any credit
General Manager and an Assistant General institution for any of the purposes herein
Manager who shall be appointed as provided;
hereinafter provided.
(7) To survey, subdivide and set aside lots or
SEC. 3. The NARRA shall have at least three areas of such lands for farming, townsites,
divisions, to wit: (1) Settler Selection and roads, parks, government centers, and other
Screening, (2) Transportation and Supplies, public and civic improvements, and to dispose
and (3) Settlement Assistance and Community of farm lands and townsite lots to persons
Work. The General Manager shall submit at qualified to the extent of areas authorized
the beginning of each fiscal year, but not later under the Constitution and the Public Land

 Agra | Jiggy Mijares Marquez

Act, subject to such other qualifications and to purpose, and for subsistence necessary until
prices, terms and conditions as may be credit can be provided by the Agricultural
prescribed by the Board of Directors; Credit and Cooperative Financing
Administration (ACCFA) under section
(8) To secure for the settlers from other thirteen of this Act, or by any other credit
government agencies such assistance and institution by loaning to them the full amount
facilities as may be necessary to accelerate required for such purposes. These loans shall
development, cultivation and electrification of be non-interest bearing, a lien upon the land,
settlements; construction of irrigation and shall be amortized over a period of ten
systems; institution of credit facilities, years, payable annually beginning with the
enhancement of cottage industries; and end of the third year after the date of arrival
establishment of processing plants, in the settlement area, subject to the right of
warehouses and marketing facilities; and the borrower to pay in full at any time prior to
the maturity of the loan;
(9) To do such other things and to transact all
such business directly or indirectly necessary, (3) To assist the said settlers in securing
incidental or conducive to the attainment of equipment, supplies and materials needed in
the policy enunciated in this Act the settlement areas at the most advantageous
prices or terms, and, if requested, to assist the
SEC. 6. In addition to the functions and duties cooperative associations of the new settlers in
specified and to implement the same properly, securing the most advantageous prices or
the NARRA shall undertake the following terms on farm implements and supplies
activities: needed by the cooperative associations and
their members;
(1) To select and screen applicants for
allocation within the areas set aside for (4) To help provide housing and other
purposes of settlement in the public domain accommodations for the new settlers in the
who (a) are bona fide farmers in the highly settlement areas upon arrival by locating
settled areas, (b) do not own any land with an them in properly surveyed and subdivided
area of five hectares or more, (c) have not lots reserved for the purpose, to help organize
owned any homestead, (d) have not secured community activities that the new settlers
any homestead rights from any homesteader, require upon arrival in the new settlement,
(e) are capable of discharging their and to cooperate with the agricultural
responsibilities as settlers, and (f) shall work extension service, the Bureau of Health, the
the land in the settlement areas on the basis of Bureau of Public Schools and other pertinent
the family-operated, family-type agencies of the Government, in providing the
farms: Provided, That in selecting applicants services for the proper establishment of
the following order or priority shall be community facilities as well as the
observed: (a) actual bona fide tenants or organization of collective efforts essential to
occupants of the land; (b) surrendered development in the new settlement areas.
dissidents, who take an oath and show sincere
desire, to support the Constitution of the (5) To submit its annual report and balance
Philippines; (c) graduates of agricultural sheets to the President and the Congress of
schools and colleges, (d) trainees who have the Philippines, as provided in sections five
completed military training; (e) veterans and hundred and seventy-four to five hundred and
members of guerrilla organizations; and (f) seventy-seven of the Administrative Code;
other applicants possessing the qualifications
required herein. (6) To appoint and fix the number and
salaries, upon recommendation of the Office
(2) To assist settlers in transporting of Economic Coordination and with the
themselves, their belongings, work animals approval of the President of the Philippines
and farm equipment, if any, from the and subject to Civil Service Law and Rules and
communities from which they are migrating the salary law, of such subordinate personnel
to the settlement areas reserved for the as may be necessary for the proper discharge

 Agra | Jiggy Mijares Marquez

of its duties and functions and upon consideration of which the former agrees to
recommendation of the Office of Economic share the harvest with the latter, or to pay a
Coordination and with the approval of the price certain or ascertainable, either in
President, suspend, remove or otherwise produce or in money, or in both.
discipline, any of its subordinate employees,
and SECTION 4. Systems of Agricultural Tenancy;
Their Definitions. Agricultural tenancy is
(7) To perform such other related duties as classified into leasehold tenancy and share
may be assigned to it by the President of the tenancy.
Philippines from time to time.
Share tenancy exists whenever two persons
Republic act No 1199 (Agricultural agree on a joint undertaking for agricultural
Tenancy Act of 1954) governed the production wherein one party furnishes the
relationship between landowners and tenant land and the other his labor, with either or
farmers by organizing share-tenancy and both contributing any one or several of the
leasehold system. The law provided the items of production, the tenant cultivating the
security of tenure of tenants. It also created land personally with the aid of labor available
the Court of Agrarian Relations. from members of his immediate farm
household, and the produce thereof to be
REPUBLIC ACT NO. 1199 (August 30, 1954) divided between the landholder and the
tenant in proportion to their respective
AN ACT TO GOVERN THE RELATIONS contributions.
BETWEEN LANDHOLDERS AND TENANTS OF
AGRICULTURAL LANDS (LEASEHOLDS AND Leasehold tenancy exists when a person who,
SHARE TENANCY) either personally or with the aid of labor
available from members of his immediate
PART I GENERAL PROVISIONS farm household, undertakes to cultivate a
piece of agricultural land susceptible of
SECTION 1. Title. This Act shall be known cultivation by a single person together with
as the "Agricultural Tenancy Act of the members of his immediate farm household,
Philippines." belonging to or legally

SECTION 2. Purposes. It is the purpose of possessed by, another in consideration of a

this Act to establish agricultural tenancy price certain or ascertainable to be paid by the
relations between landholders and tenants person cultivating the land either in
upon the principle of school justice; to afford percentage of the production or in a fixed
adequate protection to the rights of both amount in money, or in both.
tenants and landholders; to insure an
equitable division of the produce and income
derived from the land; to provide tenant- Republic Act No. 1400 (Land Reform Act of
farmers with incentives to greater and more 1995) Created the Land Tenure
efficient agricultural production; to bolster Administration (LTA) which was responsible
their economic position and to encourage for the acquisition and distribution of large
their participation in the development of tenanted rice and corn lands over 200
peaceful, vigorous and democratic rural hectares for individuals and 600 hectares for
communities. corporations

SECTION 3. Agricultural Tenancy Defined. AN ACT DEFINING A LAND TENURE POLICY,
Agricultural tenancy is the physical PROVIDING FOR AN INSTRUMENTALITY TO
possession by a person of land devoted to CARRY OUT THE POLICY, AND
agriculture belonging to, or legally possessed APPROPRIATING FUNDS FOR ITS
by, another for the purpose of production IMPLEMENTATION
through the labor of the former and of the
members of his immediate farm household, in SECTION1. Short title. This Act shall be
known as the "Land Reform Act of 1955."

 Agra | Jiggy Mijares Marquez

SECTION 2. Declaration of policy. It is the of farmers into effective cooperative
declared policy of the State to create and associations under their own control for greater
maintain an agrarian system which is unity of effort in productive processing, storage
peaceful, prosperous and stable, and to this and marketing and by promoting the
end the Government shall establish and establishment and financing of a farm marketing
distribute as many family- size farms to as system of producer-controlled and producer-
many landless citizens as possible through the owned cooperative associations.
opening up of public agricultural lands and
the division and distribution of private (2) By extending government assistance in
agricultural lands where agrarian conflicts financing of facilities which may be required by
exist, either by private arrangement with the cooperative associations for the processing,
owners or through expropriation proceedings. storage and marketing of agricultural produce as
well as for production and other essential
services which may be needed for improved

rural living.
Republic Act No. 821 (Creation of
Agricultural Credit Cooperative Financing
Administration) Provided small farmers and (3) By promoting the effective merchandising of
agricultural commodities in domestic and
share tenants loans with low interest rates of
foreign commerce so that profits of agriculture
six to eight percent.
may be kept by the farmers through the medium

of their cooperative associations who may
operate the facilities stated above, thus
[REPUBLIC ACT No. 821] minimizing speculation and preventing
inefficient and wasteful methods of distribution.
AN ACT TO ESTABLISH AN AGRICULTURAL
CREDIT AND COOPERATIVE FINANCING (4) By encouraging private banks to establish
SYSTEM TO ASSIST SMALL FARMERS IN agencies in the rural areas through the
SECURING LIBERAL CREDIT AND TO PROMOTE concentration of storage of farm produce and by
THE EFFECTIVE GROUPINGS OF FARMERS INTO making available to credit institutions
COOPERATIVE ASSOCIATIONS TO ENABLE comprehensive production and credit
THEM TO MARKET EFFICIENTLY THEIR information.
AGRICULTURAL COMMODITIES, AND TO PLACE
AGRICULTURE ON A BASIS OF ECONOMIC
(5) By granting the Administration organized in
EQUALITY WITH OTHER INDUSTRIES, AND FOR
this Act the privilege of rediscounting with the
OTHER PURPOSES.
Central Bank of the Philippines, the
Rehabilitation Finance Corporation and the
Be it enacted by the Senate and House of Philippine National Bank eligible evidence of
Representatives of the Philippines in Congress indebtedness acquired by it in carrying out its
assembled: authorized activities.

DECLARATION OF POLICY SEC. 2. To effectuate the foregoing policy, a body

corporate to be known as the Agricultural Credit
SECTION 1. It is hereby declared to be the policy and Cooperative Financing Administration,
of Congress to assist small farmers in securing hereafter referred to as the Administration, is
liberal credit and to promote the effective hereby created. Said Administration shall
groupings of farmers into cooperative execute the powers and functions vested in, and
associations to enable them to market efficiently conferred upon it, by this Act only in such
their agricultural commodities, so as to place manner as will, in the judgment of the Board of
agriculture (including livestock, poultry and Governors, aid to the fullest practicable extent in
fishing) on a basis of economic equality with carrying out the policy above declared.
other industries, and to improve the standard of
living of our people engaged in agriculture

(1) By granting personal loans to eligible small
producers who are actually engaged in
agriculture and by encouraging the organization