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CHAPTER 2 Leasehold relation is instituted in retained areas

AGRICULTURAL LEASEHOLD with a tenant who opts to remain there instead of


becoming a beneficiary in the same or another
Agricultural tenancy – physical possession by a agricultural land with similar features. The tenant
person of land devoted to agriculture, belonging to must exercise such option within one year from the
or legally possessed by another for the purpose of time the landowner manifests his choice of the area
production through the labor of the former and of for retention
the members of his immediate farm household in
consideration of which the former agrees to share in Leasehold tenancy Civil law lease
the harvest with which the latter or to pay a price Limited to agricultural
Either rural or urban
certain or ascertainable, whether in product or in land property
money, or both Tenant must personally
Lessee need not
attend to, and cultivate
personally cultivate or
Agricultural tenancy is not a purely factual the land work the thing leased
relationship. The written agreement of the parties is Devoted to agriculture
Purpose may be for any
far more important as long as it is complied with and other lawful purpose
not contrary to law Governed by special Governed by the civil
laws code
Classes of agricultural tenancy
1. Share tenancy Elements of agricultural tenancy
2. Leasehold tenancy 1. The parties are the landholder and the tenant
2. The subject is agricultural land
Share tenancy – two persons agree on a joint 3. There is consent by the landowner for the
undertaking for agricultural production wherein tenant to work on the land, given expressly
one party furnishes the land and the other his labor, or impliedly
with either or both contributing any one or several 4. The purpose is agricultural production
of the items of production, the tenant cultivating his 5. There is personal cultivation or with the help
land personally with the aid of labor available from of the immediate farm household
members of his immediate farm household, and the 6. There is compensation in terms of payment
produce thereof to be divided between the of a fixed amount in money and/or produce
landholder and the tenant; contrary to public policy
and abolished by RA 6657. Unless a person establishes his status as a de jure
tenant, he is not entitled to security of tenure nor is
Leasehold tenancy – a person, who either he covered by the Land Reform program under
personally or with the aid of labor available from existing tenancy laws.
members of his immediate farm household
undertakes to cultivate a piece of agricultural land Farm employment Tenancy relationship
susceptible of cultivation by a single person together relationship
with members of his immediate farm household, the agricultural laborer Landowner is the
belonging to or legally possessed by, another in is the lessor of his lessor, and the tenant is
consideration of a fixed amount in money or in services and the farm the lessee
produce or in both employer is the lessee
The agricultural worker Tenant derives his
How leasehold tenancy is established works for the farm income from the
1. Conversion of share tenancy to leasehold employer and for his agricultural produce or
tenancy through RA 6657 labor he receives a harvest
2. Exercise by the tenant of his right to elect wage regardless of
leasehold whether the employer
3. Agreement of the parties makes a profit

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Tenant – person who by himself, or with the aid Tenancy status arises only if an occupant of a parcel
available from within his immediate household, of land has been given its possession for the primary
cultivates the land belonging to or possessed by purpose of agricultural production. The fact of
another, with the latter’s consent for purposes of sharing alone is not sufficient to establish a tenancy
production, sharing the produce with the relationship.
landholder or for a price certain or ascertainable in
produce or in money or both, under the leasehold Personal cultivation – person cultivates the land by
tenancy system himself and with the aid available from his
immediate farm household. The lessee cannot hire
An overseer of a coconut plantation is not many persons to help him cultivate the land
considered a tenant (personal cultivation does not
exist) [Zamoras v. Su]. An overseer hires tenants and Compensation in money and/or produce – absent a
assigns their respective portions which they sharing agreement, no tenancy relationship had ever
cultivate under his supervision. existed between the parties

An owner tilling his own agricultural land is not a Security of tenure – once the agricultural leasehold
tenant. relation is established, it confers upon the
agricultural lessee the right to continue working on
Certifications of tenancy/non-tenancy issued by the the landholding until such leasehold relation is
DAR are merely provisional and not conclusive. extinguished
- Transfer of ownership or legal possession
Landholder-lessor – any person, natural or does not affect security of tenure
juridical, either as owner, lessee, usufructuary, or - Donation of land is valid. The donee of the
legal possessor of agricultural land, who lets, leases land must respect the rights of the tenant; the
or rents to another said property for purposes of donee must pay the tenant disturbance
agricultural production and for a price certain or compensation
ascertainable either in an amount of money or
produce. Rights of the agricultural lessee
a. To have possession and peaceful enjoyment
Consent of the registered owner is not necessary, as of the land
long as the person giving consent is the lawful b. To manage and work on the land in a
landholder. manner and method of cultivation and
harvest which conform to the proven farm
Agricultural land – land devoted to agricultural practices
activity, and not classified as mineral, forest, c. To mechanize all or any phase of his farm
residential, commercial, or industrial land. The area work
of agricultural land that a lessee may cultivate has d. To deal with millers and processors and
no limit, but he should cultivate the entire area attend to the issuance of quedans and
leased. The 3 hectare limit applies only to the award warehouse receipts of the produce due him
that may be given to the ARB. e. To continue in the exclusive possession and
enjoyment of any homelot the lessee may
Consent must be given by the true and lawful have occupied
landholder of the property. Tenancy relation does f. To be indemnified for the costs and expenses
not exist where a usurper cultivates the land. incurred in the cultivation and for other
expenses incidental to the improvement of
Successors-in-interest of the lawful landholder who the crop in case the lessee surrenders,
gave the consent are bound to recognize the tenancy abandons, or is ejected from the landholding
established before they acquired the agricultural g. To have the right of redemption and pre-
land. emption

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h. To be paid disturbance compensation in case a. To keep the lessee in peaceful possession and
the conversion of the farmholding has been cultivation of the land
approved b. To keep intact such permanent useful
improvements existing on the landholding
Responsibilities of lessees at the start of the leasehold relation
a. Cultivate and take care of the farm, growing
crops, and other improvements on the land Acts the lessor is prohibited to do
and perform all the work therein in a. To dispossess the lessee of his landholding
accordance with proven farm practices except upon authorization by the court
b. Inform the lessor within a reasonable time of b. To require the lessee to assume, directly or
any trespass committed by third persons on indirectly, the payment of the taxes or part
the farm, without prejudice to his direct thereof levied on the land
action against the trespasser c. To require the lessee to assume, directly or
c. Take reasonable care of the work animals indirectly, any rent or obligation of the lessor
and farm implements delivered to him by to a third party
the lessor and see to it that they are not used d. To deal with millers or processors without
for purposes other than those intended, or written authorization of the lessee in cases
used by another without the knowledge and where the crop has to be sold in processed
consent of the lessor form before payment of the lease rental
d. Keep the farm and growing crops attended e. To discourage, directly or indirectly, the
to during work season formation, maintenance or growth of unions
e. Pay the lease rental to the lessor when it falls or organizations of lessees in his landholding
due f. For coconut lands, indiscriminate cutting of
coconut trees will be deemed prima facie
Only the tenant-lessee has the right to a homelot. evidence to dispossess the tenant of his
Members of the immediate family of the tenants are landholding unless there is written consent
not entitled to a homelot. of the lessee and there is PCA certification

Rights of the lessor Causes for termination of leasehold relation


a. To inspect and observe the extent of a. Abandonment of the landholding without
compliance with the terms and conditions of the knowledge of the agricultural lessor
the leasehold contract b. Voluntary surrender of the landholding by
b. To propose a change in the use of the the agricultural lessee, written notice of
landholding to other agricultural purposes, which shall be served three months in
or in the kind of crops planted advance
c. To require the lessee, taking into c. Absence of an heir to succeed the lessee in
consideration his financial capacity and the the event of his death or permanent
credit facilities available to him, to adopt incapacity
proven farm practices necessary to the d. Conversion of the land to non-agricultural
conservation of the land, improvement of the use (tenant is entitled to disturbance
fertility and increase in productivity compensation)
d. To mortgage the expected rentals
Abandonment
The lessor may propose a change in use but the - Finality and publicity; giving up absolutely,
change shall be agreed upon by the landowner and with intent never again to resume or claim
the lessee. In case of disagreement, it may be settled one’s rights or interests
by the PARAD or RARAD. - Actual, absolute, and irrevocable desertion
of one’s right or property
Obligations of the lessor

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- Failure to cultivate the land by reason of the lessee’s financial capacity and the credit
forcible prohibition to do so by a third party facilities available to him
cannot also amount to abandonment d. There has been substantial damage,
- Abandonment presupposes free will destruction, or unreasonable deterioration of
the land or any permanent improvement
Voluntary surrender of property thereon due to the fault or negligence of the
- Tenant’s intent to surrender landholding lessee
cannot be presumed or implied; it must be e. The lessee failed to pay lease rental on time
convincingly and sufficiently proved except when such non-payment is due to
- Bare allegation of the landowner is crop failure to the extent of 75% as a result of
insufficient a fortuitous event
- The filing of the complaint for reinstatement f. The lessee employed a sub-lessee
of leasehold tenancy by the farmer militates g. The landholding is declared by the DAR to
against the landowner’s claim that the be suited for residential, commercial,
farmers voluntarily surrendered their industrial, or some other urban purposes
landholding subject to payment of disturbance
In case of death or permanent incapacity, the compensation [equivalent to 5 times the
leasehold continues between the lessor and the average of the gross harvest on his
person who can cultivate the land personally landholding during the last 5 preceding
(leasehold relation is not terminated), chosen by the calendar years] to the lessee
lessor one month from such death or incapacity
from [assuming all successors are qualified]: Liabilities of a lessor who ejects a tenant without
a. The surviving spouse authority from the court
b. The eldest direct descendant by 1. Fine or imprisonment
consanguinity 2. Damages suffered by the agricultural lessee
c. The next eldest descendant or descendants in in addition to the fine or imprisonment for
the order of age unauthorized dispossession
3. Payment of attorney’s fees incurred by the
The transferee of the land in case it is sold, alienated, lessee
or transferred is subrogated to the rights and 4. Reinstatement of the lessee
substituted to the obligations of the lessor.
Lease rentals
Dispossession of tenants may be authorized by the - Not more than 25% of the average normal
Court in a judgment that is final and executory if harvest during the 3 agricultural years
shown that the: preceding:
a. The lessee failed to substantially comply a. The effectivity of RA 6389 for tenanted
with the terms and conditions of the contract rice and corn lands
or with pertinent laws unless the failure is b. The date the tenant opted to enter into a
caused by a fortuitous event or force majeure leasehold agreement or June 15, 1988,
b. The lessee planted crops or used the land for whichever is sooner, for sugar lands
a purpose other than what has been c. June 15, 1988 or the date of leasehold
previously agreed upon [the lessee is now agreement by the parties concerned,
allowed to intercrop or plant secondary whichever is sooner, for other lands
crops after the rental has been fixed, - Normal harvest – the usual or regular
provided the lessee shoulders the expenses] produce obtained from the land when it is
c. The lessee failed to adopt proven farm not affected by any fortuitous event.
practices necessary to conserve the land, - Agricultural year – time required for raising
improve its fertility, and increase its a particular product, including the
productivity taking into consideration the preparation of the land, sowing, planting,
and harvesting of crops, and threshing of

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said crops, from harvest to harvest. The
period may be shorter or longer than a Failure of farmers to register
calendar year. - No effect on prejudicial to his rights as a
- Only the amount used for seeds and the cost potential beneficiary
of harvesting, threshing, loading, hauling, - He may simply avail of the next registration
and processing are allowable deductions period
from the normal harvest in determining the
lease rental Landholdings covered by CARP
- Computation of lease rental should include - The 3 phases as outline in Sec. 7 of RA 6657
secondary crops, except if it occupies half a should not be interpreted as an exclusive
hectare or less order of priority. What is contemplated is
simultaneous over-all implementation
- Lands to be acquired: rice and corn lands;
idle or abandoned lands; lands foreclosed by
CHAPTER 3 private and government financial
LAND ACQUISITION institutions; private agricultural lands; lands
acquired by the PCGG; public agricultural
All persons who own or claim to own agricultural land
lands are required to file a sworn statement with - Idle/abandoned land – agricultural land not
the assessor’s office cultivated, tilled or developed to produce
1. The description and area of the property any crop nor devoted to any specific
2. The average gross income from the property economic purpose continuously for a period
for at least 3 years of 3 years immediately prior to the receipt of
3. Names of all tenants and farmworkers notice of acquisition by the government, but
therein not including land that has become
4. Crops planted in the property and the area permanently or regularly devoted to non-
covered by each crop agricultural purposes. It does not include
5. Terms of mortgages, leases, and land which has become unproductive by
management contracts subsisting reason of force majeure or fortuitous event,
6. The latest declared market value of the land provided that prior to such event, such land
as determined by the assessor was previously used for agricultural or other
economic purpose.
Effects of non-registration - Private agricultural land – land devoted to
- Valuation will not be based on the valuation agricultural activity and not classified as
of the assessor residential, commercial, or industrial.
- Just compensation shall be ascertained on
the basis of the factors provided in Sec. 17 of Even if the ownership of the mortgaged property
RA 6657 changes, the encumbrance, unless extinguished by
any means allowed by law, subsists.
The law requires DAR to register (continuing
activity) all potential beneficiaries and compile a The creditor-mortgagee shall be considered as the
data bank. landowner for the purpose of covering the
properties under CARP under 2 circumstances:
Disqualified to be beneficiaries (excluded from 1. When the mortgagee is the purchaser in the
registration): foreclosure sale and the redemption period
a. Beneficiaries of PD 27 who have culpably has already expired where the right of
sold, disposed of, or abandoned their land redemption exists
b. Landowners of PD 27 beneficiaries who 2. When the mortgagee is the purchaser in the
already own or have already received at least foreclosure sale and said sale is confirmed by
3 hectares of land

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the court in cases where only the equity of
redemption is provided CARP covers both private and public agricultural
lands.
The creditor is considered as a lien-holder or
mortgagee if as of the date the land transfer claim The State already owns the public agricultural land.
was received by the Land Bank form DAR and
either: Requisites for acquisition of private agricultural
a. The mortgage debt is not yet due and land
demandable 1. The land should be privately owned and
b. Mortgage debt is already due and found suitable for agriculture
demandable but the mortgagee has not 2. There are beneficiaries willing to take over
foreclosed on the property the ownership of the land and make it more
c. Mortgage has already been foreclosed but productive
the period to exercise the right of redemption 3. The landowner is paid just compensation or
has not expired or the foreclosure sale has deposit in cash or LBP bonds is made in his
not yet been confirmed by the court in cases name if the value is contested
where there is only equity of redemption 4. Title to the land is transferred in the name of
the Republic of the Philippines
Mortgages and other claims registered with the
ROD shall be assumed by the Government up to an Modes of Acquisitions of Private Agricultural
amount equivalent to the landowner’s Lands
compensation value. The government will assume the 1. Operation Land Transfer
mortgage indebtedness not exceeding the just 2. Voluntary Offer to Sell
compensation due the landowner. The obligation of the 3. Voluntary Land Transfer/Direct Payment
debtor to pay stands although the mortgaged Scheme
property has been transferred to a third person. 4. Compulsory Acquisition
5. Voluntary Stock Distribution of Corporate
Commercial farms – private agricultural lands Farms
devoted to commercial livestock, poultry and swine
raising, and aquaculture including saltbeds, All acquisitions are compulsory in nature, in the
fishponds, and prawn ponds, fruit farms, orchards, sense that the landowners have no choice except to
vegetable and cut-flower farms, and cacao, coffee submit to the CARP
and rubber plantations; subject to immediate
compulsory acquisition and distribution after 10 Full payment of just compensation is not necessarily
years from the effectivity of RA 6657. All required under Voluntary Land Transfer/Direct
infrastructure facilities and improvements Payment Scheme because payment is governed by
including buildings, roads, machineries, receptacles, the mutual agreement of the parties.
instruments, or implements permanently attached
to the land which are necessary and beneficial to the Payment of just compensation to the government
operations of the farm as determined by DAR, and instrumentality as landowner may come even after
shall be subject to acquisition upon the land distribution.
recommendation of the ARBs. Subject to 10-year
deferment. I. Operation Land Transfer
- Tenanted rice and corn lands
Corporate farms – owned or operated by - Issuance of a Certificate of Land Transfer
corporations or other business associations. over a landholding presupposes that the
Corporate farms may be acquired through property had already been covered under
voluntary land transfer, VOS, CA, and voluntary the Operation Land Transfer.
stock distribution plan. Not subject to 10-year - Ownership or dominion over the land
deferment. moved immediately from the landowner to

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tenant-farmer, rather than upon completion
of payment of the price of the land III. Voluntary Land Transfer/Direct
- Being merely a Certificate of Land Transfer Payment Scheme
holder is not the owner of the subject - Landowner and beneficiary enter into a
property and thus, not entitled to just voluntary arrangement for the direct transfer
compensation of the lands
- Mere issuance of Certificate of Land Transfer - Lands mortgaged to banks and financial
does not vest in the farmer/grantee institutions cannot be the subject of
ownership of the land. VLT/DPS
- The CLT simply evidences the government’s - Notices for VLT must be submitted to the
recognition of the grantee as the party DAR within the first year of the
qualified to avail of the statutory implementation of the CARP
mechanisms for the acquisition of ownership - Negotiations remaining unresolved after one
of the land tilled by him year shall not be recognized. Such land shall
- It is the emancipation patent which be acquired by the government and
constitutes conclusive authority for the transferred pursuant to RA 6657.
issuance of an OCT or TCT - Terms and conditions of the transfer shall
- Failure on the farmer to comply with his not be less favorable to the transferee than
obligation to pay his lease rentals or those of the government’s standing offer to
amortization payments when they fall due purchase from the landowner and to resell to
for a period of two years to the landowner or the beneficiaries
agricultural lessor is a ground for forfeiture - Immediate transfer of possession and
of his certificate of land transfer ownership of the land in favor of the ARB
- CLOAs shall be issued to the ARB with
II. Voluntary Offer to Sell proper annotations
- Landowners voluntarily offer their - If parties cannot agree on the price, the
agricultural lands for coverage regardless of procedure for compulsory acquisition will
phasing apply
- Not automatically accepted by DAR - Commercial farms may be acquired through
- Rejected by DAR if not suitable for VLT/DPS
agriculture, or has a slope of more than 18% IV. Compulsory Acquisition
and is undeveloped, or if there are no takers - Land is expropriated by the State
or persons willing to be ARBs, or the only - Where the landowner opts for other modes
identified ARBs are the qualified children of of acquisition, compulsory acquisition is
the landowner suspended
- Withdrawal of the VOS is not allowed after - If negotiations fail, compulsory acquisition is
the receipt by the DAR of the letter offer for resumed
VOS - All idle or abandoned agricultural lands are
- Withdrawal may be allowed if for the subject to compulsory acquisition
purpose of acquisition and compensation - Compulsory acquisition may shift to
through Voluntary Land Transfer/Direct VLT/DPS or VOS provided that the claim
Payment Scheme folder has not yet been forwarded to the
- Withdrawal may be allowed if landholding Land Bank for computation of the land value
is more suitable for a townsite or
resettlement site V. Voluntary Stock Distribution of
- If land is outside the coverage of CARP, it Corporate Farms
will be reconveyed to the original transferor - Corporate owners voluntarily dilute a
- Landowners who voluntarily offer their portion of their capital stock, equity or
lands for sale are entitled to an additional 5% participation in favor of their workers or
cash payment other qualified beneficiaries

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- Stock ownership is equivalent to the land, within 15 days from the receipt of the
agricultural land actually devoted to notice.
agricultural activities valued in relation to 5. Upon receipt by the landowner of the
the total assets of the corporation corresponding payment, the DAR shall take
- Cannot be availed of at the present (express immediate possession of the land and shall
provision of RA 6657) request the ROD to issue a TCT in the name
of the Republic of the Philippines
Conditions which the corporate farms must 6. Any party who disagrees with the decision
comply with may bring the matter to the court of proper
1. The books of the corporation shall be subject jurisdiction
to periodic audit by CPAs chosen by the
beneficiaries Notice to the landowner is vital to the validity of the
2. Irrespective of the value of their equity in the coverage and acquisition of the landholding. It is
corporation, the beneficiaries shall be important to comply with the requisites of due
assured of at least one representative in the process.
BOD or in the management of the
corporation If the landowner is a corporation or partnership, the
3. Any shares acquired by such workers and notice may be served on the president, manager,
ARBs shall have the same rights and features secretary, cashier, agent, or any of its directors or
as all other shares partners.
4. Any transfer of shares by the original ARBs
shall be void unless said transaction is in The DAR, in adjudicating agrarian reform matters,
favor of a qualified and registered ARB is not bound by technical rules of procedure. What
within the same corporation is important is the right to be heard. An
administrator of the corporation who takes charge
Procedure for acquisition of private agricultural of the operations of the corporation, in participating
land in the proceedings, satisfies the due process
1. DAR to send Notice of Coverage to requirement.
landowner and post the same in a
conspicuous place. The notice contains the DAR Municipal Office identifies the land to be
offer of the DAR to pay the value of the land covered, the landowners, and the beneficiaries
2. Within 30 days from the date of receipt of
written notice by personal delivery or For deferred commercial farms, the Order of
registered mail, the landowner, his Deferment previously issued over the landholding
administrator, or representative shall inform shall serve (upon its expiration) as the Notice of
DAR of his acceptance or rejection of the Coverage. For record purposes, he shall be served
offer with a Notice of Expiration of Deferment. The
3. If the landowner has accepted, the Land landowner is invited to join the field investigation to
Bank shall pay the landowner the purchase select his retention area.
price of the land within 30 days after he
executes and delivers a deed of transfer in The DAR Municipal Office shall post a copy of the
favor of government and surrenders the Notice of Coverage and field inspection for 7
OCT/TCT working days
4. In case of rejection or failure to reply, the
DAR shall conduct summary administrative The determination of just compensation is a function
proceedings to determine the compensation addressed to the courts of justice and may not be
for the land requiring the landowner, the usurped by any other branch of government. The
LBP and other interested parties to submit determination of just compensation by DAR is not
evidence as to the just compensation of the final. It may be appealed in court.

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The transfer of possession and ownership of the land 4. The property must be devoted to public use
to the government is conditioned on the receipt by or informally appropriated or injuriously
the landowner of the corresponding payment or the affected
deposit by the DAR of the compensation in cash of 5. The utilization of the property for public use
LBP bonds. must be in such as a way as to oust the owner
and deprive him of beneficial enjoyment of
The opening of a trust account and issuance of a the property
certification from LBP that a certain sum has been Factors which may be used in determining just
earmarked for the landowner does not constitute compensation
substantial compliance with Sec. 16(e) of RA 6657, a. Cost of acquisition
since the law is explicit in requiring deposit of cash b. Current value of like properties
or LBP bonds only. However, the deposit per se is a c. Nature of land
valid mode of payment. d. Actual use
e. Income
Reconstitution of Lost or Damaged Title f. Sworn valuation by the landowner
- Restoration of the instrument which is g. Tax declaration
supposed to have been lost or destroyed in h. Assessment by government assessors
its original form and condition i. Social and economic benefits contributed by
- Judicial reconstitution – partakes of a land farmers and farmworkers and by the
registration proceeding and is a proceeding government
in rem j. Non-payment of taxes or loans secured from
- Administrative reconstitution – in cases of government financing institutions on land
substantial loss or destruction of land titles Basic Formula for Land Value = (Capitalized Net
due to fire, flood, and other force majeure Income x 0.6) + (Comparable Sales x 0.3) + (Market
where the number of certificates lost or Value per Tax Declaration x 0.1)
damaged is at least 10% of the total number
of titles in the custody of the ROD and is at Comparable sales – any one or the average of all the
least 500 applicable sub-factors: sales transactions;
acquisition cost; market value based on mortgage

CHAPTER4
JUST COMPENSATION
Valuation of lands planted to permanent but not
The ARB is not privy to the determination of just yet fruit-bearing crops
compensation - Land value is equivalent to the value of the
land plus the cumulative development cost
Just compensation – the equivalent for the value of of the crop from land preparation
the property at the time of its taking; a fair and full - The resulting land value should not exceed
equivalent for the loss sustained; the measure is not the value of productive land similar in terms
the taker’s gain but the owner’s loss of crop and plant density within the estate
under consideration or within the same
There is compensable taking when: barangay or municipality
1. The expropriator must enter private
property Lands with permanent but not yet productive
2. The entry must be for more than a crops introduced by farmer-beneficiaries
momentary period - The resulting land value should not exceed
3. The entry must be under warrant or color of the value of productive land similar in terms
authority of crop and plant density within the estate
under consideration or within the same
barangay or municipality

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Use of salvage value on valuation of lands planted factors to consider in valuing land of corporate
to permanent but no longer productive or ready for farms
cutting crops a. factors for the determination of just
- The resulting land value should not exceed compensation
the value of productive land similar in terms b. factors needed to stimulate the growth of
of crop and plant density within the estate cooperatives and participation of worker-
under consideration or within the same beneficiaries
barangay or municipality
Valuation of land planted to sugarcane
Land value under Voluntary Offer to Sell - effects of ratooning are considered
- Computed value should not exceed the - ratooning – the cutting of the straw close to
landowner’s offer the ground at harvesting time after all the
- Landowner’s offer is grossed up from the standing water has been drained out to allow
date of the offer up to the date of receipt of the young tillers to sprout out of the
the CF by Land Bank from DAR for rootstocks and develop into mature normal
processing bearing plants with the aid of fertilizer
- reduces the cost of production for sugar
Capitalized Net Income – difference between the planters
gross sales and total cost of operations based on the
latest available 12-months information. Whenever Valuation of rubber plantations
the cost of operations cannot be obtained, an - recognized income is based on the farm
assumed net income rate of 20% is used. produce (processed crumb lumber) in their
raw forms
- market for old rubber trees is considered
Comparable Sales - valuation should be made on the basis of the
- Three comparable sales transactions age and productivity of the trees at the time
- If more than 3, the most recent transactions of re-computation
are used
- Based on sales transactions at the barangay Compensation for Mt. Pinatubo areas
level or municipal level or provincial level Category I – actually affected by lahar
- Sales transactions used should be similar in Category II – not yet affected by lahar
topography, land use, stage or productivity, Category III – remains productive
plant density, as that determined Category III shall be acquired; Categories I and II
- Sales transactions are grossed up from the will be acquired under certain conditions
date of registration up to the date of receipt
of CF by the Land Bank from DAR The Land Bank of the Philippines is primarily
responsible for the determination of the land
Acquisition Cost valuation and compensation for all private lands
- Relevant when the property was acquired
through purchase or exchange after Jan. 1, Public participation in the determination of land
1985 and the property is still substantially valuation is encouraged.
similar from the date of purchase
- grossed up from the date of registration up Preliminary determination of just compensation
to the date of receipt of CF by the Land Bank cases
from DAR - preliminary unless accepted by the parties
- landowner may question the determination
Market Value per Tax Declaration before the Special Agrarian Court
- latest tax declaration issued prior to receipt - landowner and other interested parties may
by CF by Land Bank submit evidence

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- the power to decide just compensation cases CHAPTER 5
for the taking of land is vested in the Special LAND REDISTRIBUTION
Agrarian Court
PARAD Farmers and tillers qualified to be beneficiaries
RARAD a. Children of landowners (preferred
DARAB beneficiaries)
DAR Secretary – PD 27 lands b. Agricultural lessees and share tenants
(actual tiller)
Valuation of PD 27 lands c. Regular farmworkers
- lease rentals paid by the ARB to the d. Seasonal farmworkers
landowner are considered as advance e. Other farmworkers
payments for the land f. Actual tillers or occupants of public lands
- landowners are entitled to legal interest on g. Collectives or cooperatives of the
the amount payable from the time the beneficiaries
property was taken until full payment is h. Others directly working on the land
made
Qualifications of Agrarian Reform Beneficiary
Just compensation need not be paid in cash. a. Must be landless (owns less than 3 hectares
Payment may be in shares of stock, LBP bonds, other of agricultural land)
properties or assets, tax credits, etc. The smaller the b. At least 15 years old or head of a family at
land, the bigger the payment in money because the the time the land was transferred in the name
landowner will be needing it more than the big of the Republic of the Philippines
landowners. c. Have the willingness, ability, and aptitude to
cultivate the land and make it as productive
The proportion of payment in cash depends on the as possible
area of the land.
The lands covered by CARP shall be distributed as
LBP Bonds much as possible to landless residents of the same
a. market interests are aligned with 91-day barangay, or landless residents of the same
treasury bill rates, net of tax, payable twice a municipality.
year
b. 1/10 of the face value matures every year Qualifications of landowner’s children
c. Fully guaranteed by the national a. At least 15 years of age at the time of the
government award
d. Non-denominated. It can be spit according b. He is actually tilling the land or directly
to the amounts desired by the bondholder managing the farm (cultivation of the land
e. Highly transferable and negotiable and may through personal supervision under the
be used for various purposes (i.e. system of labor administration)
discounting)
f. Falls within the purview of the non- Landowners’ children
impairment clause of the Constitution. The  Effected by the issuance of a CLOA
value cannot be diminished even by law.  Three hectares for each child
 Land does not form part of the retention
Mode of payment for PD 27 landowners (exempt right of the parent-landowners
from capital gains tax)  Preferred beneficiary
a. Bond payment over 10 years  Rules on payment for the value of the land
b. Direct payment in cash or in kind by the Land Bank and the payment of
c. Other modes amortizations do not apply UNLESS there
has been a tenancy relationship between the
parent-landowner and the child
Page 11 of 30
 Regional Director rules on protests filed by
Persons disqualified as beneficiaries those claiming to be beneficiaries
a. Not included in the enumeration (appealable to the Secretary)
b. Fails to meet the qualifications  Landowner cannot select the beneficiaries
c. Culpably sold, disposed of, or abandoned
their land received under CARP or PD 27 Farmworker – natural person who renders service
d. Land has been foreclosed by the Land Bank for value as an employee or laborer in an
or repossessed by the landowner in case of agricultural enterprise or farm regardless of
Voluntary Land Transfer or Direct Payment whether his companion is paid on a daily, weekly,
Scheme, for non-payment of an aggregate of monthly, or pakyaw basis.
three annual amortizations
e. Converted their land to non-agricultural use Qualifications for farmworkers in commercial
without prior DAR approval farms (those who worked longest on the land
f. Guilty of negligence or misuse of the land or continuously shall be given priority)
any support extended to him a. Must be at least 18 years old upon filing of
application as agrarian reform beneficiary
Grounds for disqualification of beneficiary b. Must have the willingness, aptitude, and
a. Misuse or diversion of financial and support ability to cultivate and make the land
services extended to the beneficiary productive
b. Misuse of the land c. They must have been employed in the
c. Material misrepresentation of the commercial farm between June 15, 1988 and
beneficiary’s basic qualifications June 15, 1998 or upon the expiration or
d. Sale, transfer, lease, or other forms of termination of the deferment
conveyance by the beneficiary of rights over
the land Disqualifications for farmworkers in commercial
e. Continuous neglect or abandonment of the farms
awarded land over a period of 2 calendar a. Mandatory retirement (65)
years b. Optional retirement or resignation, provided
f. Failure to pay an aggregate of three the farmworker did not file any case
consecutive amortizations to the Land Bank questioning the same
or to the landowner, except in case of c. Dismissal for just cause (serious misconduct,
fortuitous events willful disobedience of order, gross neglect,
g. Illegal conversion of the land by the abandonment, dishonesty, loss of
beneficiary confidence, commission of crime, analogous
h. Waiver of rights to awarded lands cases) by final judgment (excluding
i. Beneficiary’s surrender of awarded land to authorized cause)
landowner or other non-beneficiary d. Waiver or refusal to be a beneficiary
j. Other acts or omissions that circumvent laws e. Violation of agrarian reform laws and
regulations as determined with finality
Squatters are disqualified to become CARP
beneficiaries Categories of farmworkers
a. Regular farmworker – permanent
Selection of beneficiaries b. Seasonal farmworker – recurrent, periodic,
 The Municipal Agrarian Reform Officer or intermittent basis
(MARO)or the Agrarian Reform Program c. Other farmworker – neither regular not
Technologist, with the participation of the seasonal, but paid for his labor
Barangay Agrarian Reform Committee d. Technical farmworker – highly educated
(BARC) screens the beneficiaries and trained; performs functions in scientific,
engineering, medical, teaching, and other

Page 12 of 30
fields; not vested with managerial or c. Effectively considered in the
supervisory functions management decision
e. Managerial or supervisory farmworker –
vested with powers and prerogatives to (1) Seasonal farmworkers
lay down and execute management policies; - Statutory, not constitutional right to be a
(2) hire, transfer, suspend, layoff, recall, beneficiary
discharge, assign, or discipline employees;
and/or (3) effectively recommend Collectives or Cooperatives as Qualified
managerial actions Beneficiaries
- Composed of the beneficiaries
Farmworkers who are directly working on the land - Can, by itself, be an awardee of land under
at the time DAR conducts actual investigation and CARP
documentation of the agricultural enterprise, - The beneficiaries may opt for collective
whether as regular, seasonal, or other farmworkers, ownership or farmer’s cooperative or other
are qualified beneficiaries. collective organization
- Cooperatives – organizations composed
The Beneficiary Screening Committee comes up primarily of beneficiaries who voluntarily
with a master list of qualified beneficiaries, and a organize themselves for the purpose of
waiting list of those who possess the minimum pooling land, human, technological,
qualifications and none of the disqualifications. financial, or other economic resources, and
operated on the principle of one member,
Remedy of farmworker excluded from master list one vote. A juridical person may be a
 File a written protest with the Beneficiary member of a cooperative, with the same
Screening Committee rights and duties as a natural person.
 Those beneficiaries whose inclusion is - The aggregate size of land awarded to an
questioned will be given the chance to file an association or a cooperative shall not exceed
answer the total number of members multiplied by
 The Regional Director shall resolve the the award ceiling of 3 hectares, except where
protest based on substantial evidence the PARC approves a larger award
 No motion for reconsideration
 Appealable to the Undersecretary for Field The inclusion in the CLOA of the names of all the
Operations and Support Services (final and members of a collective or cooperative is not
executory) necessary.
 Decision of Regional Director is executory Where the CLOA is under co-ownership, the
even pending appeal names of all the co-owners should be listed
in the collective CLOA
Managerial and Supervisory Farmworkers Where the CLOA is awarded in the name of
 May qualify as beneficiaries if they qualified the association or cooperative, there is no
before their promotion, and that they give up need to include the names of the individual
their managerial or supervisory positions members thereof in the collective CLOA
 Farmworker must be vested with the power
to formulate and implement management Women may be beneficiaries under the CARP. For
policies; to hire, fire, assign, and discipline as long as a female farmer’s rights have vested and
employees; and/or effectively recommend have been established separately from her
such managerial actions husband’s or father’s, she is entitled to receive land
 Supervisor’s recommendations must be: under the program.
a. Discretionary or judgmental, not clerical
b. Independent, not a dictation of someone Farmworkers who are husband and wife may be
else separately entitled to three hectares each provided

Page 13 of 30
that their vested rights to the land have been duly Identified ARBs are formally notified by the
established MARO
ARBs are consulted on their preferred mode
To require women to separately cultivate from male of distribution
ARBs would work against the interests of women. Land Distribution Folders are prepared
An additional burden of cultivating the land would PARO reviews all documents and generates
be harshly onerous upon women who are spouses of CLOAs
beneficiaries. The DENR will conduct subdivision survey
PARO submits CLOAs to DAR Regional
As long as the wife works in the home, all properties Office to be signed by the DAR Secretary
received or acquired during the subsistence of the PARO registers the CLOAs with the ROD
marriage is considered part of the conjugal The CLOAs are forwarded to the MARO for
partnership or of the absolute community. There is distribution
no reason for RA 6657 to be given a different
interpretation. The DAR need not take physical possession of the
land before it is distributed to the ARBs. In issuing
Generally, distribution of land shall be made the CLOA, the Republic of the Philippines exercised
directly to individual beneficiaries. an act of dominion over the landholding as
In case it is not economically feasible and redistribution involves disposition or alienation.
sound to divide the land, then it shall be
collectively owned by the worker- Homelot – does not exceed 1000 square meters;
beneficiaries forming a cooperative or parcel of agricultural land used by ARBs as the site
association which will deal with the of his permanent dwelling including the area
corporation or business association utilized for raising vegetables, poultry, pigs, and
Collective ownership such as co-ownership other animals and engaging in minor industries
or farmer’s cooperative
Total land area awarded in the collective If the homelot of the ARB falls within the retained
CLOA cannot exceed the total number of area of the landowner, the ARB may be made to
beneficiaries involved multiplied by three transfer his dwelling to a farmlot or other area to be
hectares, except when authorized by the designated for his homelot which shall be mutually
PARC agreed upon by the parties. The landowner
The collective CLOAs may be subdivided shoulders the cost of relocation.
based on the share of each member
Commercial farms may be distributed collectively
Factors considered in land distribution or individually. Commercial farms shall be initially
Actual occupancy of a tenant, provided it distributed collectively or under co-ownership. In
does not exceed 3 hectares case the ARBs want to partition, the DAR shall
If untenanted land: all farmworkers therein determine whether it is economically feasible.
shall be considered as potential beneficiaries, Thereafter, the ARBs will vote whether to partition
provided that the proportional share of each or not. If they partition, they will draw lots to
will not exceed three hectares determine who gets which portion.
If unoccupied land: each identified ARB may
be allowed up to 3 hectares, provided there Facilities and improvements in commercial farms
is enough land in the barangay for all the shall be distributed collectively through a Deed of
ARBs Transfer. Areas where the facilities are found are
deemed common areas and shall not be partitioned
Distribution Procedure individually.
After land acquisition, the MARO validates
the list of beneficiaries Corporate farms are distributed directly to the
individual ARBs. If not economically feasible and

Page 14 of 30
sound, corporate farms shall be owned collectively a. 60-day notice to the board of directors
by the ARBs who shall form a cooperative or prior to withdrawal of membership
association which will deal with the corporation or b. Refund of his share capital contribution
business association. Each ARB will have homelots and other interests in the cooperative,
for family use, to be taken from the land owned by except if assets of the cooperative are
the cooperative or corporation. insufficient to pay its liabilities
c. Death, insanity, insolvency, dissolution
Corporate farms owning or operating under lease of a member constitutes an automatic
or management contract termination of membership
 Mandated to execute a production and d. A member may be terminated by a vote
profit sharing plan (PPS) to allow of the majority of the board for causes:
farmworkers in corporate farms to realize an 1. Member has not patronized the
improvement in their farm income pending services of the cooperative for an
final transfer of the farm unreasonable period of time as may
 Managerial and supervisory employees are be fixed by the BOD
excluded from entitlement to PPS 2. Member has continuously failed to
 PPS are distributed to farmworkers, over comply with his obligations
and above the compensation they are 3. Member has acted in violation of the
currently receiving: (a) 3% of annual gross by-laws and rules of the cooperative
sales, and (b) 10% of net profit after tax 4. Any act or omission injurious or
prejudicial to the interest or the
Proof of ownership of awarded lands welfare of the cooperative
 Certificate of Land Ownership Award
(private agricultural land) The sale, transfer, or conveyance of lands acquired
 Free Patent (public land) by ARBs under RA 6657 is prohibited for 10 years
 Emancipation Patent (land awarded under from the date of the award (annotated on the
Operation Land Transfer) [may be cancelled certificate of title).
by DARAB]
Lands acquired under CARP may be alienated
Once a CLOA has been issued and registered in the through hereditary succession, or in favor of the
name of the ARB, it serves as evidence of title to the government, the Land Bank, or other ARBs even
land. However, his rights over the land and the before the expiration of the 10-year ban.
related support services may be forfeited if he
neglects, abandons, misuses, or sells the land. An ARB may convey his rights to the land, with the
approval of the DAR, to any qualified heir of the
The ARB cannot subdivide the land in favor of his ARB or another ARB. However, the selling ARB
children or heirs. Even after his death, the heirs cannot be a beneficiary again. The transferee must
cannot divide the land into smaller units. cultivate the land himself and maintain its
productivity as agricultural land. Otherwise, the
Heirs may receive the land by way of hereditary land will be distributed to another ARB.
(intestate) succession. The heir who succeeds to the
land must pay the other heirs their legal shares in Lands awarded pursuant to EO 228 and PD 27 may
the property of the deceased ARB. If there are no be alienated only upon full payment of
heirs, the land reverts to the government, to be amortizations on the purchase price. Before full
distributed to another ARB. payment, only the rights to the land may be
alienated, and with prior approval of the DAR, and
Protection of rights of member-beneficiaries only to the heirs of the ARB or another ARB.
- Ensured in the articles of incorporation and
in the by-laws of the organization Mortgage of awarded land is not equivalent to sale,
- Exit provisions in the Cooperative Code disposition, or conveyance

Page 15 of 30
Failure to pay due to fortuitous event
- Scheduled amortization payment is limited
Manner of Payment by beneficiaries to the maximum amount of 10% of the
- Payment begins one year from the date of the annual gross production
registration of the CLOA with the ROD - Does not result in the permanent
- If occupancy date occurred after the date of disqualification of the ARB
CLOA registration, the occupancy date
would be the basis for the amortization The amount of regular annual amortization is not
schedule affected in case the landowner is granted by the
courts a higher valuation than that pegged by the
A. Land acquired through compulsory DAR/LBP/BARC during the valuation process. The
acquisition or Voluntary Offer to Sell only effect is to increase the government assistance.
- Lands awarded to ARBs shall be paid for
by the farmers in 30 annual Repossessed land does not revert to landowner
amortizations at 6% interest per annum, - The DAR cancels the CLOA issued to the
payable to the Land Bank beneficiary
B. Land acquired through the VLT/DPS - Land is transferred to a qualified heir of the
- Payment shall be made directly by the beneficiary, who shall assume the unpaid
farmer-beneficiaries to the landowner balance
under the terms and conditions agreed - In the absence of an heir, the land will be
upon by the parties, as approved by DAR awarded to a new ARB who will abide by the
(not less favorable to the ARB than if the terms of the existing VLT/DPS agreement
land was acquired through compulsory  The landowner shall refund the
acquisition) payments and shall pay for the
improvements made by the former
The basis for computation of the amount of ARB, less the lease rentals for the
amortizations will be the cost of the land and the duration of his use of the land
permanent improvements thereon.
Assistance to farmer-beneficiaries in making
The amortizations may be reduced to a percentage payments
of the annual gross production. a. The difference between the regular annual
Annual gross production – the peso value of the amortization and the affordable amount
annual yield/produce per hectare of the land during the first five years after the award of
awarded to farmer-beneficiaries the land to the ARB where the affordable
amount is lower than the regular amount
Effect of default in payment by beneficiary b. The difference between the regular annual
o VLT/DPS scheme – the land may be amortization and ten percent of the AGP
repossessed in case the ARB fails to pay an during the 6th and 10th year, whenever such
aggregate of 3 consecutive annual 10% AGP is lower than the regular
amortizations from the date of receipt of the amortization
amortization schedule, except if due to force c. Rebate of 2% of interest in case the
majeure beneficiary makes an early payment
o Voluntary Offer to Sell/Compulsory
Acquisition – failure of ARB to pay 3 annual Production and Profit-Sharing (PPS) Plan –
amortizations to the Land Bank gives the required in order to improve the income of
bank the right to foreclose the land, except if farmworkers pending final land transfer or stock
due to force majeure. The ARB will be distribution or full control
permanently disqualified from becoming a
beneficiary again. Employers required to execute PPS (P5 million
annual gross sales):

Page 16 of 30
1. Enterprise owning or operating agricultural Transfer of homelots to farmers as disturbance
lands under lease, management contract, compensation already exempted from CARP
production venture, or other similar coverage is taxable.
arrangement
2. Multinational corporations engaged in The landowner is entitled to retain his share in the
agricultural activities standing crops unharvested at the time the DAR
3. Commercial farms devoted to agriculture shall take possession of the land under the
including salt beds, fishponds, prawn ponds, compulsory acquisition scheme, and shall be given
fruit farms, orchards, vegetable and cut- reasonable time to harvest the same. (sugar lands:
flower farms, cacao, coffee, and rubber original crop only; excluding future harvest from
plantations ratoons)

To qualify under the PPS, a farmworker must not Support services – designed to uplift the economic
own more than 3 hectares of agricultural land. status of the beneficiaries and all other
arrangements which will allow the beneficiaries to
Covered employers are required to pay, in addition receive a just share of the fruits of the lands they
to the compensation currently received by the work.
farmworkers:
a. 3% of Annual Gross Sales from June 15, 1988 Office of Support Services – under the DAR;
until final land or corporate stock transfer provides general support and coordinative services
b. In addition, 10% of net profit after tax in the implementation of the CARP, infrastructure
(excluding the profit proportionate to the development and public works projects in areas and
area retained by the landowner) settlements that come under agrarian reform

Where the benefits received are less than what is Joint Economic Enterprises – partnerships or
provided under RA 6657, covered employers shall arrangements between ARBs and investors to
pay the difference to the farmworkers implement an agribusiness enterprise in agrarian
reform areas. Ownership of the land remains with
Powers of DAR, through its Secretary or authorized the beneficiaries. Only the use thereof, where
representatives: necessary, is conveyed. The parties shall agree on
1. Order and administer compliance with the the period and cause the annotation of the
PPS agreement on the titles of the properties
2. Require covered employers to submit report
on the distributed PPS Small landowners may engage in joint economic
3. Compel the production of books and other enterprises involving their retained areas.
relevant documents of employers
4. Compel answers to questions on the Types of Joint Economic Enterprises
implementation of the PPS 1. Joint Venture – separate personality;
5. To issue subpoena beneficiaries contribute use of the land
6. To enforce its writs through sheriffs or other together with the facilities and improvement
deputized officers while the investor provides capital and
technology
Transfers of ownership under RA 6657 are exempt 2. Production, processing, and marketing
from capital gains tax, registration fees, and other agreement – beneficiaries engage in
taxes and fees on conveyances. All arrearages in production and processing of agricultural
real property taxes, without penalty or interest, are products and directly sell them to the
deductible from the compensation to which the investor who provides loans and technology
owner is entitled. 3. Build operate transfer scheme – investor
builds facilities and improvements,
beneficiaries receive reasonable rent for the

Page 17 of 30
use of the land. Upon the expiration of the Presidential Agrarian Reform Council
agreed period, ownership of the facilities ↑
and other improvements is consolidated in Barangay Agrarian Reform Committee
the name of the beneficiaries (BARC)
4. Management contract – beneficiaries hire a
contractor with managerial skills to manage DAR Jurisdiction
and operate the farm in exchange for a wage  Primary jurisdiction to determine and
or commission. The beneficiaries provide adjudicate agrarian reform matters
labor. All income accrue exclusively to the  Exclusive jurisdiction over all matters
ARB involving the implementation of agrarian
5. Service contract – beneficiaries engage for a reform, except those falling within the
fee the services of a contractor for land exclusive jurisdiction of DA and DENR
preparation, cultivation, harvesting, post-  Certification from the BARC stating that the
harvest operations, etc. dispute underwent mediation and
6. Lease contract – beneficiaries bind conciliation without any success of
themselves to give the investor the use of settlement is necessary
their land for a price certain and for a definite  If no certification is issued by the BARC
period. The investor operates the farm. within 30 days after submission for
However, leaseback arrangements should be mediation, the case may be brought before
the last resort. the PARC
7. Combinations or phased arrangements  Courts have no jurisdiction to issue
8. Other schemes restraining orders or injunctions against the
implementation of the CARP by DAR

Jurisdiction of DAR Secretary


CHAPTER 6  Agrarian law implementation (ALI) –
ADJUDICATION OF AGRARIAN REFORM administrative implementation of RA 6657
MATTERS and other agrarian laws
 Jurisdiction is delegable to DAR officials
 The Secretary or his authorized
DAR Secretary representative may exercise quasi-judicial
↑ powers
Regional Director  Powers:
↑ to summon witnesses
Provincial Agrarian Reform Office (PARO) Administer oaths
↑ take testimony
Municipal Agrarian Reform Office (MARO) require submission of reports
compel the production of books and
documents and answers to
Supreme Court interrogatories
↑ issue subpoena and subpoena duces
Court of Appeals tecum
↑ enforce writs through sheriffs or other
DAR Adjudication Board (DARAB) duly deputized officers
↑ punish direct and indirect contempt
Regional Adjudicator (RARAD)  Regional Director has the authority to issue
↑ a Cease and Desist Order or Status Quo
Provincial Adjudicator (PARAD) Order pending the resolution of the case:
a. Where grave or irreparable damage will
result to the parties
Page 18 of 30
b. Where the doing or continuance of  Under the 1994 DARAB Revised Rules of
certain acts will render the case moot and Procedure
academic
c. Where there is a need to maintain peace Jurisdiction of Special Agrarian Reform Courts
and order and prevent injury or loss or  Petitions for the determination of just
life or property compensation to landowners
 Agrarian Law Implementation cases  Prosecution of all criminal offenses under
1. Classification and identification of RA 6657
landholdings for coverage under CARP,
including protests or oppositions thereto Protest/Petition for Lifting of Notice of
and petitions for lifting of coverage Coverage/Application for Exemption or Exclusion
2. Identification, qualification or  Regional Director
disqualification of potential farmer- a. lifting of notice of coverage
beneficiaries b. issuance of exemption clearance
3. Subdivision surveys of lands under involving lands with an area of 5 hectares
CARP and below
4. Issuance, recall, or cancellation of  Secretary
Certificates of Land Transfer (CLTs) and a. application for the issuance of exemption
CARP Beneficiary Certificates (CBCs) in clearance involving lands with an area of
cases outside the purview of PD 816, more than 5 hectares
including the issuance, recall or
cancellation of Eps or CLOAs not yet Conversion
registered with the Register of Deeds  DAR officials authorized to approve or
5. Exercise of the right of retention by the disapprove applications
landowner
6. Applications for exemption Other Agrarian Law Implementation Cases
7. Issuance of certificate of exemption for  Generally within the jurisdiction of the
lands subject of VOS and CA found Regional Directors
unsuitable for agricultural purposes
8. Application for conversion of Flashpoint cases
agricultural lands to residential,  Within the jurisdiction of the Regional
commercial, industrial, or other non- Director OR the Director of the Bureau of
agricultural uses including protests or Agrarian Legal Assistance (BALA)
oppositions thereto  Determined or certified by the Secretary or
9. Right of ARBs to homelots the Head Executive Assistant which:
10. Disposition of excess area of the FBs a. Threatens to disrupt the status quo in a
landholdings particular area and endanger life and
11. Transfer, surrender, or abandonment by limb as a result of the use of force of
the FBs of his farmholding and its either party
disposition b. Subject of massive pickets or which may
12. Increase of awarded area awarded by the immediately result in concerted mass
farmer-beneficiary actions either in the DAR Central Office
13. Conflict of claims in landed estates and or in the field offices
settlements c. Are of such nature that the Secretary may
14. Other matters dealing with the assign for immediate resolution
administrative implementation of  Once certified as a flashpoint case, the entire
agrarian laws record and the comments and
recommendations are transmitted to the
Jurisdiction of DAR Adjudication Board Office of the SCS Director within 48 hours
from notice of the directive
Page 19 of 30
 A certification that a case is considered coverage after review and evaluation of the
flashpoint shall merely serve to accord Field Investigation Officer (FIO)
utmost priority to the resolution thereof but c. Filed while the claimfolder is pending with LBP
shall not divest the concerned DAR official or the claimfolder has been forwarded by the
of the authority to resolve such cases, unless PARO: the LBP shall continue with the
specifically directed in the national interest, processing of the land compensation claim,
or the Secretary himself has assumed except that the Certification of Deposit shall
jurisdiction over the case not be issued to the PARO until the
application, protest, or petition is finally
Hierarchy of Resolution of disputes in Joint resolved
Economic Enterprises (JEE)
1. Voluntary methods Period within which to file a petition for lifting of
2. Mediation or conciliation by trained notice of coverage = within 30 days from the receipt
mediators or conciliators of the Notice of Coverage. EXCEPT when:
3. Arbitration a. The protest or petition is based on
4. To any of the following depending on the allegations that subject landholding is
principal cause of action: exempted from CARP coverage
a. DARAB if it involves interpretation of an b. It is determined by DAR that the subject
agribusiness agreement or an agrarian landholding is exempted from CARP
dispute coverage
b. SEC if it involves an intra-corporate
dispute DAR procedures are summary in nature and the
c. Cooperative Development Authority if department is not bound by the technical rules of
it involves an intra-cooperative dispute procedure and evidence. Agrarian disputes will be
d. National Labor Relations Commission adjudicated in a just, expeditious and inexpensive
if it involves employer-employee proceeding.
relations
The Secretary may issue writs and orders to DARAB Cases
maintain the status quo and preserve peace and The DARAB was created under the Office of the
order in the farm subject of a JEE: DAR Secretary and is given the functions to
a. There is a clear and imminent threat to life or adjudicate specific agrarian reform cases
property DARAB has quasi-judicial powers to determine and
b. The dispute will cause serious and adjudicate agrarian reform matters
irreparable damage to either party or to the
agribusiness enterprise Powers and Functions of DARAB
c. In his judgment, there is an urgent need to  Delegate its powers and functions to the
protect the national interest regional offices: adjudicators are specifically
designated to adjudicate agrarian reform
Effects of filing an application for exemption, cases in the regions and provinces
exclusion, conversion, retention, or protest against  DARAB has no jurisdiction on matters which
coverage: strictly involve the administrative
a. If filed before issuance of notice of coverage: the implementation of agrarian laws----within
notice shall not be issued until the the exclusive jurisdiction of the Secretary
application is finally resolved
b. If filed after the issuance of notice of coverage: the DARAB has no jurisdiction on agrarian matters
DAR may proceed with the processing of the involving the prosecution of all criminal offenses
claimfolder. Such processing may be under RA 6657 and the determination of just
suspended by the PARO if the landholding compensation for landowners. Special Agrarian
is in fact exempted or excluded from CARP Courts have jurisdiction over the same (initially
referred to DAR.

Page 20 of 30
The Court of Appeals and Supreme Court maintain Agrarian dispute – any controversy relating to
their appellate jurisdiction over agrarian cases tenurial arrangements, whether leasehold, tenancy,
decided by DARAB. stewardship or otherwise, over lands devoted to
agriculture, including disputes concerning farm
Barangay Agrarian Reform Committee (BARC) workers’ associations or representation of persons in
 Implementation of CARP negotiating, fixing, maintaining, changing or
seeking to arrange terms or conditions of such
Primary and Exclusive original and appellate tenurial arrangements
jurisdiction of DARAB
1. All agrarian disputes involving the The jurisdiction of DARAB is limited only to
implementation of agrarian laws matters involving the implementation of CARP. It is
2. Cases involving rights and obligations of restricted to agrarian cases and controversies
persons engaged in the management, involving lands falling within the coverage of the
cultivation and use of agricultural lands aforementioned program. It does not include those
covered by agrarian law which are actually, directly, and exclusively used
3. Cases involving the valuation of land, and and found to be necessary for school sites and
the preliminary determination and payment campuses for setting up experimental farm stations,
of just compensation, fixing and collection of research and pilot production centers.
lease rentals, disturbance compensation,
amortization payments and other similar Jurisdiction of RARAD and PARAD
disputes concerning the functions of the LBP  Concurrent original jurisdiction with the
4. Cases involving the annulment or Board to hear, determine, and adjudicate all
cancellation of lease contracts or deeds of agrarian cases and disputes, and incidents
sale or their amendments involving lands therewith, arising within their territorial
under the administration and disposition of jurisdiction
the DAR or LBP  RARAD (concurrent jurisdiction with
5. Cases arising from or connected with PARAD) = Executive Adjudicator in his
membership or representation in compact region; directly responsible to the Board
farms, farmers’ cooperative and other a. Direct supervision over PARADs
registered farmers’ associations or b. Recommend to the Board the territorial
organizations, related to lands covered by assignments and disciplinary measures
agrarian laws appropriate to the PARADs
6. Cases involving the sale, alienation, c. Adjudicate agrarian disputes and land
mortgage, foreclosure, preemption and valuation cases
redemption of agricultural lands under the d. Hear and handle other cases which
coverage of agrarian laws cannot be handled by the PARADs
7. Cases involving the issuance, correction and By reason of PARADs disqualification
cancellation of Certificates of Land or inhibition
Ownership Award (CLOAs) and PARADs cannot handle the case
Emancipation Patents (Eps) which are properly
registered with the Land Registration Because of the complexity and
Authority sensitivity of the case
8. Cases previously falling under the original Delegated just compensation cases
and exclusive jurisdiction of the Court of Those assigned by the Board
Agrarian Relations
a. Ejectment cases Appellate jurisdiction of the Board
b. Dispossession of a tenant by the - DARAB has jurisdiction to review all the
landholder or by a third party decisions of the Adjudicators
9. Such other agrarian cases

Page 21 of 30
- DARAB has no jurisdiction over cases such as motions for the issuance of status
involving annulment or cancellation of quo orders, temporary restraining orders,
orders and decisions of the Secretary preliminary injunctions

PARADs, RARADs, and DARAB has original and Powers and Duties of DARAB Adjudicators
exclusive jurisdiction in the preliminary 1. Personally conduct a hearing, take control of
determination of just compensation cases. It is the proceedings, employ reasonable means
appealable to the Special Agrarian Court. to ascertain the facts of the case, determine
the real parties in interest, define and
Mediation/Conciliation at Barangay Level simplify the issues of the case, and thresh out
 Lack of BARC certification is not a ground preliminary matters
for dismissal of an action. A complainant is 2. To subpoena, summon witnesses, examine
given every opportunity to secure said witnesses, may limit the right of
certification. parties/counsels to ask questions to clarify
 BARC is not an adjudicator at the barangay the points of law at issue or of facts involved,
level may limit the presentation of evidence to
 BARC is mandated to mediate and conciliate matters relevant to the issues, and endeavor
agrarian disputes at the barangay level. The to settle the case amicably/approve
BARC persuades the contending parties to compromise agreements
settle their disputes amicably 3. To hold a party in contempt, to issue writs
 If the land in dispute straddles two or more and interlocutory orders, and award actual,
barangays or the parties reside in different compensatory, exemplary, and moral
barangays, the BARC of the barangay where damages and attorney’s fees
the biggest portion of the property lies, shall
have the authority to conduct the mediation Special Agrarian Courts
or conciliation proceedings---unless parties - RTCs designated by the Supreme Court to
agree on a different venue within the exercise special jurisdiction in addition to its
municipality or adjacent municipality regular jurisdiction
- Original and exclusive jurisdiction over
DARAB can take cognizance even without BARC petitions for the determination of just
certification: compensation to landowners and
1. if the dispute does not involve: prosecution of all criminal offenses under
a. Valuation lands to determine just RA 6657
compensation
b. One of the parties is a corporation, Judicial review of orders or decisions of DAR
partnership, association, or juridical Secretary
person, or a public officer or employee - Decisions of Secretary in Agrarian Law
in relation to his official functions Implementation cases may be appealed to
c. Issue involved is an administrative the Office of the President or the Court of
implementation of agrarian laws Appeals (Rule 43, ordinary appeal)
d. Cases determined by the Secretary as
beyond the ambit of mediation, Judicial review of DARAB decisions
conciliation, or compromise - To the Court of Appeals by a Rule 65 Petition
2. The required certification cannot be for Certiorari
complied with for valid reasons like the non- - Decision is immediately executory
existence or non-organization of the BARC notwithstanding appeal to the Court of
or the impossibility of convening it. (PARO Appeals
shall conduct the mediation/conciliation)
3. It involves resolving and disposing of Judicial review of decisions of Special Agrarian
preliminary incidents related to the case, Courts

Page 22 of 30
- Petition for review with the Court of Appeals b. Agricultural lands already issued a notice of
coverage or voluntarily offered for coverage
under CARP
c. Agricultural lands identified under AO 20
as non-negotiable for conversion

CHAPTER 7 The power of DAR to approve/disapprove land use


LAND USE CONVERSION conversion applications is exclusive. It is distinct
from LGUs’ power to reclassify agricultural land.
Land Use Conversion – the act or process of DAR’s role in the reclassificateion process is the
changing the current use of a piece of agricultural issuance of a certification that the lands sought to be
land into some other use (non-agricultural uses) as reclassified are not distributed or not covered by a
approved by DAR notice of coverage or not voluntarily offered for
coverage under the CARP.
Reclassification (by LGU) – the act of specifying
how agricultural lands shall be utilized for non- After the reclassification by the LGU, a DAR
agricultural uses such as residential, industrial, conversion clearance is still required prior to the
commercial, as embodied in the land use plan, actual change of use of the land.
subject to the requirements and procedures for
conversion. It includes the reversion of non- Expropriated lands are not subject to DAR
agricultural lands to agricultural use Conversion Clearance. Otherwise, LGUs can no
[AGRICULTURAL → (RESIDENTIAL / longer expropriate agricultural lands without first
applying for a DAR Clearance. In effect, it would be
INDUSTRIAL / COMMERCIAL]
the DAR who will scrutinize whether the
[NON-AGRICULTURAL → AGRICULTURAL] expropriation is for a public purpose.

Conversion – the act of changing the current use of DAR is charged with the mandate of approving or
a piece of agricultural land into some other use disapproving applications for conversion.
[AGRICULTURAL → NON-AGRICULTURAL]  Such authority may be exercised from the
law’s effectivity: June 15. 1988
A city or municipality may authorize the  DAR’s failure to observe due process in the
reclassification of agricultural land AFTER PUBLIC acquisition of landholdings does not ipso
HEARING: facto give the court the power to adjudicate
a. When the land ceases to be economically over an application for conversion of land
feasible and sound for agricultural purposes; from agricultural to non-agricultural.
OR  DARs authority to allow conversion is not
b. When the land has substantially greater limited only to lands awarded under CARP.
economic value for residential, commercial, It extends to private agricultural lands.
or industrial purposes
c. Up to 15% highly urbanized cities and DAR Officials authorized to issue conversion
independent component cities orders
d. Up to 10% for component cities and 3rd class Regional Director Not more than 5 ha.
municipalities Undersecretary 5-50 ha.
e. Up to 5% for 4th to 6th class municipalities Secretary More than 50 ha.
o Total aggregate area of all applications
Lands not covered by authority of LGUs to reclassify regardless of the number of applications and
a. Agriculture lands distributed to agrarian the nature of the proposed project where:
reform beneficiaries subject to Sec. 65 of RA a. Properties are owned by the same person
6657 or entity or the owners are represented
by the same person or entity; and
Page 23 of 30
b. The properties are located in the same support the economic viability of existing
barangay or adjacent barangays within agricultural infrastructure and agro-based
the same municipalities or cities enterprises
c. Highlands or areas located in elevations of
Subject to DAR Conversion Authority: 500 meters or above and have the potential
a. Those to be converted to residential, for growing semi-temperate and usually
commercial, industrial, institutional, and high-value crops
other non-agricultural purposes d. Lands issued with notice of land valuation
b. Those to be devoted to another type of and acquisition, or subject of a perfected
agricultural activity such as livestock, agreement between the landowner and the
poultry, and fishpond, the effect of which is beneficiaries under the voluntary land
to exempt the land from CARP coverage transfer/direct payment scheme
c. Those to be converted to non-agricultural e. Environmentally critical areas
use other than that previously authorized
d. Those reclassified to residential, industrial Lands non-negotiable for conversion (cannot be
commercial, industrial or other non- converted)
agricultural uses on or after the effectivity of a. Agricultural lands within protected areas
RA 6657 b. All irrigated lands, where water is available
to support rice and other crop production
Outside DAR’s conversion authority c. All irrigated lands where water is not
a. Agricultural lands reclassified to non- available for rice or other crop production
agricultural uses prior to June 15, 1988 but are within areas programmed for
(subject to DAR exemption clearance) irrigation facility rehabilitation
b. Agricultural lands considered non- d. All agricultural lands with irrigation
negotiable for conversion facilities operated by private organizations
c. Lands within the Strategic Agriculture and
Fisheries Development Zones (5 yrs. only or Priority development areas for conversion (still
up to Feb. 9, 2003) (moratorium is not requires DAR clearance, but processing is faster (13
absolute: 5% of the lands may be converted) days); environmental compliance certificate is not a
i. All irrigated lands pre-condition to the approval, it is part of the
ii. Irrigable lands already covered by conditions of the order of conversion)
irrigation projects with firm funding a. Specific sites in regional agri-industrial
commitments centers/regional industrial centers
iii. Lands with existing or having the identified by DTI and DA
potential for growing high-value crops b. Tourism development areas identified by the
DoT
Areas highly restricted from conversion (more c. Sites identified and proposed to be
stringent process to be converted; the applicant developed by LGUs into socialized housing
must clearly show that conversion is far more projects which are presently used for
beneficial to the community and the public) agricultural purposes
o Deliberated upon by the PARC Land Use d. Sites intended for socialized housing projects
Technical Committee and subject to the e. Agricultural areas intended for ECOZONE
Secretary’s approval projects
o Applicant submits: (1) project feasibility
study and (2) environmental compliance Socialized Housing Projects (SHOPC)
certificate o Priority development area
a. Irrigable lands not covered by irrigation o Applicants for conversion involving
projects with firm funding commitment socialized and low-cost housing projects are
b. Agro-industrial croplands, or lands exempt from :
presently planted to industrial crops that a. the posting of cash bond

Page 24 of 30
b. Certification of Eligibility for Conversion  Forfeited in favor of the government in the
from CA event actual conversion activities are
c. Environmental Compliance Certificate undertaken by the applicant prior to the
from DENR approval of the application for conversion
o Processed for 13 working days from
complete application Performance Bond
 Posted in favor of DAR
Criteria for conversion  To guarantee payment of penalty in the
1. Not non-negotiable for conversion event it is established that the applicant is in
2. Conversion may be allowed: default of his obligations under the order of
a. Land ceased to be economically feasible conversion
and sound for agricultural use  Effective for the duration of the project
b. Locality has become urbanized and the approved under the conversion order
land will have greater economic value for  In the form of: (i) cash, manager’s check,
non-agricultural purposes cashier’s check, irrevocable letter of credit,
3. Factors applicable to lands within SAFDZ: bank draft equivalent to 2.5% of the zonal
a. Conversion is consistent with the natural value of the land; or (ii) bank guarantee
expansion of the locality equivalent to 5% of the zonal value of the
b. Area to be converted is not the only land; or (iii) surety equivalent to 15% of the
remaining food production area of the zonal value
community  Forfeited in favor of the government in case
c. Conversion will not hamper the of violation of the conditions of the
availability of irrigation to nearby conversion order such as non-payment of
farmlands disturbance compensation, failure to
d. Areas with low productivity will be develop or complete the project within the
accorded priority for conversion period prescribed, etc.
e. Sufficient disturbance compensation
shall be given to the farmers whose Disturbance compensation
livelihoods are negatively affected by the o Tenants, farmworkers, or bona fide
conversion occupants who will be affected by the
4. The environmental impact assessment or conversion are entitled
initial environmental examination shall have o In an amount mutually agreed by the
determined that it shall not adversely affect affected tenants, farmworkers, or occupants,
air and water quality and the ecological and the landowner or developer, but not less
stability of the area than five (5) times the average of the gross
harvests on their landholding during the last
Reclassification to non-agriculture use by the LGU is five preceding calendar years.
not indispensable in the granting of the application o If parties disagree, it may be brought before
for conversion. It is only a factor. The final the DAR Adjudication Board
determination belongs to the DAR. o Subject to DARs approval and compliance
monitoring
Applicants are required to post two kinds of bonds: o Payment must be made within 60 days from
cash bond and performance bond. the date of approval of the application for
conversion
Cash Bond
 posted upon filing of the application Protests and Oppositions against application for
 2.5% of the total zonal value of the land conversion
 Refundable upon issuance of the order of - May be filed by any person who will be
conversion displaced or directly affected
 Convertible into performance bond
Page 25 of 30
- In writing, filed within 15 days from the 6. The order is without prejudice to ancestral
posting of the Notice of Application domain claims of indigenous peoples

Grounds for opposition Effect of approved conversion on the tenants,


1. The area applied for is non-negotiable for farmworkers, or occupants of the property (after
conversion payment of disturbance compensation or
2. The adverse effects or the displacement to be compliance with the terms and conditions of the
caused by the proposed conversion far agreement for disturbance compensation)
outweigh the social and economic benefits to - They are expected to give up all their rights
the affected communities over the land such as possession, tenancy in
3. Misrepresentation or concealment of favor of the landowner/developer
material facts - Agricultural leasehold cannot be established
4. Illegal/premature conversion
5. Conversion was resorted to so as to evade Grounds for revocation/withdrawal/cancellation
CARP coverage and to dispossess the tenant of conversion order
farmers a. Misrepresentation or concealment of facts or
Conditions on the order of conversion circumstances material to the grant of
1. Payment of disturbance compensation conversion
within 60 days from issuance of the order b. Non-compliance with the conditions of the
2. Posting of notice of conversion in a order of conversion
conspicuous place c. Lack of jurisdiction of the approving
3. Development of the land within a specific authority
period d. Non-compliance with the agreement on
4. Withdrawal or cancellation of the order for disturbance compensation
misrepresentation of facts integral to its e. Conversion to use other than authorized in
issuance or for violation of the rules and the conversion order
regulations on land use conversion f. Any other violation of relevant rules and
regulations of DAR
Effects of the granting of conversion
1. The conversion is limited to the specific use Period within Ground
of the land authorized in the order. A new which to file
application must be filed if the land will be the petition
used for another purpose for
2. All conversion orders are subject to the cancellation
schedule indicated in the detailed site 90 days from Misrepresentation
development plan and work and financial discovery of or concealment, or
plan submitted by the applicant (must not facts which non-compliance
exceed 5 years from the issuance of the order, would with the
except if authorized) warrant such agreement on
3. The conditions of the order are binding not cancellation disturbance
only upon the applicant but also upon BUT NOT compensation
successors-in-interest of the property MORE THAN
4. Duly authorized representatives of DAR 1 year from
should be allowed free and unhampered the issuance of
access to the property subject of the the order of
conversion order for compliance monitoring conversion
purposes 90 days from Non-compliance
5. The use authorized in the order of discovery of with the
conversion shall be annotated on the title of such facts but conditions of the
the subject property not beyond order; conversion

Page 26 of 30
the period to use other than a. The offender is any person
stipulated in that authorized; b. The person either effects the
the order other violation of i. Sale, transfer, or conveyance of
relevant rules and the land
regulations of ii. Change the nature of the land
DAR c. The land must be outside of urban
anytime Lack of centers and city limits
jurisdiction d. The transaction or the change of the
nature of the land may be of the whole or
If the conversion order is cancelled or withdrawn a portion of the land
- Land shall revert to the status of agricultural e. The transaction or the change of the
land nature of the land was effected after June
- Subject to CARP coverage 15, 1988 (the date of the registration of
the conveyance in the ROD or the date of
the issuance of the tax declaration is
CHAPTER 8 conclusive)
PROHIBITED ACTS AND OMISSIONS 3. Illegal/premature/unauthorized conversion
a. The land is agricultural land
The prosecution of these acts does not preclude b. The offender is the landowner
DAR from pursuing administrative cases against the c. There are acts committed converting the
offenders for the same acts or on the basis of the use of the land into non-agricultural use
same facts. d. The intent is to
i. Avoid the application of RA 6657;
The Special Agrarian Courts have the jurisdiction and
over the criminal cases. ii. To dispossess tenant farmers
tilling the land
The DAR has jurisdiction over administrative cases. 3.1. First type of illegal conversion
a. Offender is the landowner
I. Prohibited acts and omissions by b. He converts his agricultural land into
Landowners any non-agricultural use without
authority or DAR clearance
1. Ownership and possession of land beyond c. The intention of the conversion is to:
allowable limits i. Avoid the application of RA
a. Offender is any person, natural or 6657; and
juridical ii. To dispossess the farmers of
b. Person owns and possesses agricultural the land tilled by them
lands in excess of retention limit or 3.2. Second type of illegal conversion
award ceilings, except in the case of a. Offender is the landowner or any
collective ownership by farmer other person
beneficiaries b. He changes the nature of the
c. The purpose of ownership or possession agricultural land, in whole or in part
is to circumvent the provisions of RA c. Land is located outside urban centers
6657 and city limits
2. Prohibited sale, transfer, conveyance, or d. Act was committed after June 15,
change in the nature of the land 1988
(The sale or disposition of agricultural land 3.3. Premature conversion
is not totally void. It is valid to the extent that a. The land is agricultural land
the total landholding of the transferee as a b. The offender may be any person
result of the said acquisition does not exceed c. Actual development activity is
the landholding ceiling) undertaken on the land

Page 27 of 30
d. The development activity modifies or b. Offender sells, transfers, or conveys the
alters the physical characteristics of rights to use or any other usufructuary
the land right over his land
e. The land development renders the c. The subject land was acquired by him by
land suitable for non-agricultural virtue of being a beneficiary
purposes d. The act is motivated by the design to
f. There is no approved order of circumvent the provisions of RA 6657
conversion from the DAR
3.4. Unauthorized conversion 2. Misuse or diversion of financial aid and
Not a criminal act, but merely support services
administratively sanctioned a. The beneficiary was granted financial aid
3.4.1. First type of unauthorized conversion and other support services
a. Offender is any person, i.e., b. The beneficiary either
landowner, developer, or other any i. Misuses the financial aid and support
person services
b. The person changes the current use ii. Diverts such aid or services for other
of an agricultural land into another purposes
agricultural purpose
c. The change of use was done without 3. Misuse of the land
an order of conversion from DAR 3.1. First type
3.4.2. Second type of unauthorized a. Offender is a grantee of land
conversion awarded through CLOA or EP
a. Offender is any person b. Offender commits acts which cause
b. The subject land is granted an order substantial and unreasonable
of conversion for its commitment to damage to the land
non- agricultural purposes c. Such act causes the deterioration and
c. The person commits the land to a depletion of the soil fertility
purpose other than that allowed 3.2. Second type
under the order of conversion a. Offender is a grantee of land
3.4.3. Punishable acts relating to conversion awarded through a CLOA or EP
a. Misrepresentation or concealment of b. He knowingly plants, grows, or
material facts in conversion raises any plant which is the source
application of a dangerous drug as defined in
b. Non-compliance with the conditions PD 1683
set forth in the conversion order
c. Non-compliance with the agreement 4. Continuous neglect or abandonment of
on disturbance compensation awarded lands
Abandonment – willful failure of the
ARB, together with his farm household,
II. Prohibited acts and omissions by to cultivate, till, or develop his land to
beneficiaries produce any crop, or to use the land for
any specific economic purpose
1. Sale, transfer, conveyance of rights continuously for a period of two
acquired as a beneficiary calendar years
If the land is acquired under PD 27 or EO a. The offender is an agrarian reform
228, ownership may be transferred upon full beneficiary
payment of the amortization by the b. The beneficiary willfully fails or refuses
beneficiary to cultivate, till or develop to produce
a. The offender is an agrarian reform any crop the land awarded him
beneficiary

Page 28 of 30
c. Such failure or refusal continue for a III. Prohibited acts and omissions by other
period of two (2) calendar years persons

5. Material misrepresentation of In cases where the offender is a corporation,


qualifications partnership, or association, the manager, or in
a. The offender is a beneficiary his default, the person acting as such when the
b. Offender intentionally made false violation took place shall be criminally
statements respecting a matter of fact in responsible.
his application for qualification as an
ARB under RA 6657 and other agrarian 1. Forcible entry and unlawful detainer
reform laws a. Offender is any person who is not
c. The misrepresented fact was material to qualified to become a beneficiary
the determination of his qualification to b. He deprives the owner or legal
become a beneficiary representatives or any assigns of said
owner, the right of possession thereof
6. Default and failure in the payment of either through:
amortization to landowner i. By entering the land of another
a. Offender is an ARB by force, intimidation, threat,
b. The beneficiary acquired the land by threat, strategy, or stealth
virtue of Voluntary Land Transfer or ii. Unlawfully refusing to vacate the
Direct Payment Scheme land after the right to hold
c. The beneficiary fails to pay the possession thereof has expired
landowner amortization for three (3) c. The intention of the acts is to avail
consecutive years themselves of the rights and benefits of
d. Failure is due to reasons other than force the Agrarian Reform Program
majeure or fortuitous event
2. Obstruction and prevention of CARP
7. Failure to pay amortizations to LBP implementation
a. The beneficiary is an awardee of land a. Offender may be a landowner,
acquired through Compulsory beneficiary, or any other person, natural
Acquisition or Voluntary Offer to Sell or juridical
b. The beneficiary fails to pay the LBP at b. The person commits acts to prevent or
least three (3) annual amortizations obstructs the implementation of the
c. Failure is due to reasons other than force CARP
majeure or fortuitous event
IV. Prohibited acts by agricultural lessor
8. Waiver of rights to awarded lands 1. Unlawful recording of sale in the Registry
a. Offender is a beneficiary of Property subject to Right of Redemption
b. The beneficiary has expressly or No deed of sale of agricultural land
impliedly waived his rights over the land under cultivation by an agricultural
lessee shall be recorded in the Registry of
9. FB’s surrender of awarded lands to Property unless accompanied by an
landowner or other non-ARBs affidavit of the vendor that he has given
a. Offender is a beneficiary the written notice required by Sec. 11 or
b. Offender surrenders land awarded to that the land is not worked by an
him to the landowner or other non- agricultural lessee
beneficiary a. The offender is the landowner or
c. Such surrender is without legal authority agricultural lessor, or in case of juridical
or clearance from DAR persons, the manager or the person who
has the charge of the management or

Page 29 of 30
management of the property or in his Individuals employed as supervisors shall
default, the person acting in his stead not be eligible for membership in farm
b. He effects the recording of the sale of the workers’ organizations under their
land subject of an agricultural lease supervision but may form separate
c. Such recording was effected without the organizations of their own
necessary Affidavit by the vendor that he a. Offender is the landowner, agricultural
has given prior written notice of the sale lessor, or any person
to the agricultural lessor b. Offender commits acts which impair or
prevent the exercise of the right
2. Unlawful dispossession of lessee i. Of the farmworkers to self-
a. Offender is an agricultural lessor organization
b. Offender dispossesses the agricultural ii. To engage in concerted activities
lessee of his landholding
c. Dispossession is without authorization 6. Acts violative of right of farmworkers to a
from the court minimum wage
Farm workers in farm enterprises shall be entitled to
3. Inducement to execute or enter into a share at least P3.50 a day for eight hour’s work. This wage
tenancy contract may be increased by the Minimum Wage Board.
a. Offender is any person, natural or a. Offender is a landowner or any other
juridical. In case of juridical persons, the person
manager or the person who has the
b. Offender fails or refuses to pay the
charge of the management or
farmworker the minimum daily wage
administration of the property, or in his
default, the person acting in his stead, is
V. Prohibited acts by agricultural lessee
liable
b. Offender induces another person, as
1. Cultivation of another farmland without
tenant, to execute or enter into a share
consent of lessor
tenancy contract with himself or another
a. Offender is an agricultural lessee
in violation of RA 3844
b. The land leased by him is of sufficient
size to make him and the members of his
4. Making untruthful statements in Affidavit
immediate farm household fully
required under Sec. 13, RA 3844
occupied in its production
Sec. 13 requires that prior to the
c. He contracts to work another
registration of the sale or transfer of land
landholdings belonging to a different
in the Registry of Property, the
agricultural lessor or acquires and
landowner must execute an affidavit that
personally cultivate an economic family-
written notice of the sale or transfer was
size farm
made to the agricultural lessor
d. The cultivation of the other landholding
a. Offender is the landowner, agricultural
is without the consent of his first lessor
lessor, or any person
b. He knowingly makes untruthful
2. Unlawful sublease of leased land by lessor
statements on a material matter in an
a. Offender is an agricultural lessee
affidavit required for the registration of a
b. He employs a sub-lessee on his landholdings
sale of land subject to right of pre-
c. The reason for the sub-contracting is other
emption as required under Sec. 13, RA
than illness or temporary incapacity
3844

5. Acts violating farmworker’s rights to self-


organization and to engage in other
concerted activities

Page 30 of 30

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