Agricultural Land
(a) All public and private agricultural land; and (b) Other lands of the public domain suitable for agriculture.
SCOPE
Commercial Farms (RA 6657, Section 11) (a) (b) (c) (d) (e)
Saltbeds; Fruit farms; Orchards Vegetable and cut-flower farms Cacao, coffee, rubber plantation.
Exclusions: Lands actually directly and exclusively used for: parks, wildlife, forest reserves, reforestation, fishponds sanctuaries and breeding grounds, watersheds and mangroves, prawn farms, penal colonies, school cites, cemeteries, church, mosque, research centres lands with 185 slope or over and Ancestral Lands.
Corporate Farms (Sec 8 & 29) (a) All lands of public domain, leased, held or possessed by multinational corporations or associations; (b) Other lands owned by the government or government owned and controlled corporations, associations, institutions or entities devoted to existing and operational agribusiness or agro-industrial enterprises operated by multinational corporations . (RA 6657, Section 8)
Tenant Emancipation Law (Presidential Decree No. 27)
Private agricultural lands primarily devoted to rice and corn under share tenancy or lease tenancy
(RA 6657, Section 4)
MODES OF ACQUISITION
Compulsory Acquisition (RA 6657, Section 16)
Not more than 5 hectares (RA 6657, Section 6)
RETENTION LIMIT
Considering the economic differences of each type of agricultural product therein. (RA 6657, Section 6-B) 3 hecs. for each children of the landowner. Exception: LGU expropriation of private agricultural lands for actual, direct and exclusive public purposes. (RA 6657, Section 6-A).
Within 10 years from effectivity of RA
(a) Voluntary Offer to Sell; (b) Compulsory Acquisition; (c) Direct Payment Scheme
(a) Compulsory Acquisition (RA 6657, Sec 8) (b) Voluntary Offer to Sell (for farms owned and operated by corporations or other business associations [RA 6657, Sec 29])
Not more than 5 hectares (RA 6657, Section 6)
Not more than 1,000 hectares for corporations and associations;
Considering the economic differences of each type of agricultural product therein. (RA 6657, Section 6-B)
Not more than 500 hectares for foreign individuals.
10 years from: the effectivity of RA 6657 for farms
Within 3 years from effectivity pf RA
Compulsory Acquisition
Not more than 7 hectares
IMPLEMENTATION
DISTRIBUTION SCHEME DISTRIBUTION LIMIT
QUALIFIED BENEFICIARIES
QUALIFICATIONS
6657.
already existing at the said time;
6657
(RA 6657, Section 5)
10 years from the first year of commercial production and operation for new farms.
Agricultural Land
Commercial Farms
Corporate Farms
Tenant Emancipation Law
Individually
Direct (For individual worker-beneficiaries.)
Collectively (If land is not economically feasible and sound to divide.)
Indirect (If it is not economically feasible and sound to divide the land.)
Issuance of CLT (merely qualifies the tenantbeneficiary to possess the land and comply with certain conditions preparatory to ownership.)
-oOo-
Based on Priorities: (1) Lands more than 50 hectares (June 30, 2012); (2) Lands 24 up to 50 hectares; Lands 10 up to 24 hectares (June 30, 2013); and (3) Lands 5 up to 10 hectares (June 30, 2014) Maximum of 3 hectares (RA 6657, Sec 23)
Maximum of 3 hectares, minimum of 1 hectare
(1)Agricultural lessees and share tenants; (1)Agricultural lessees and share tenants; (2) Regular farm workers; (2) Regular farm workers; (3) Seasonal Farm Workers; (3) Seasonal Farm Workers; (4) Other Farm Workers; (4) Other Farm Workers; (5) Actual Tillers or occupants of public (5) Actual Tillers or occupants of public land; land; (6) Collectives or cooperatives; (6)Collectives or cooperatives; (7) Others directly working on the land (7) Others directly working on the land a. Filipino Citizen; a. a. 18 y/o at the time of filing application b. Resident of the same Brgy. or as beneficiary; municipality of the land; b. have willingness, aptitude and ability c. 15 y/o at the identification, screening to cultivate and make land productive; c.employed in commercial farm between and selection; June 15, 1988 and June 15, 1998. d. Willing, able and equipped with aptitude to cultivate and make land productive.
-oOo-
Individual worker beneficiaries; Worker’s cooperative beneficiaries
-oOo-
Issuance of EP (vest absolute ownership) 3 hectares, if irrigated 5 hectares, if not irrigated (1)Agricultural lessees and share tenants; (2) Regular farm workers; (3) Seasonal Farm Workers; (4) Other Farm Workers; (5) Actual Tillers or occupants of public land; (6)Collectives or cooperatives; (7) Others directly working on the land
a. Filipino Citizen; b. Resident of the same Brgy. or municipality of the land; c. 15 y/o at the identification, screening and selection; d. Willing, able and equipped with aptitude to cultivate and make land productive.
DISQUALIFICATIONS
a. Do not meet the basic qualifications; b. waived right for compensation; c. not paid 3 annual amortizatiion; d. have not exercise right of redemption; e. refused to pay 3 annual amortization; (lands acquired thru VLT or DPS.) f. those dismissed for a cause; g. obtained substantially equivalent employment with income equivalent to a regular farm worker; h. retired or voluntarily resigned; i. misused the land or diverted financial support services; j. misrepresented material facts in their basic qualifications; k. sold, disposed or abandoned the land; l. converted land to non-agricultural without prior approval of DAR; m. adjudged of forcible entry or unlawful detainer over the property; and n. violated agrarian reform law and reg.
a. b. c. d. e.
Retired from service (optional or compulsory); Resigned; Dismissed for a cause; Waive or refuse to be a beneficiary; and Violated Agrarian Reform Law or regulations. (RA 6657, Section 11)
-oOo-
-oOo-
(RA 6657, Section 22)
PROCEDURES LEASEHOLD a. b. c. d.
APPLICATION TERMS
DETERMINATION OF LEASE RENTALS
EXTINGUISHMEN T
Area retained is tenanted; Farmer-beneficiary leases the awarded land to another person; Farmer-beneficiary leases the awarded land to the former landowner; or Farmer’s cooperatives or associations leased the awarded land to an agricultural corporations (Code of Agrarian Reforms, RA 3844)
INDEFINITE Lands
Deductions
Rice and other crops
25% of average normal harvest
Amount used for seeds and cost of harvesting or threshing.
Sugar cane lands
25% of average normal harvest
Value of the cost of seeds/cane points, harvesting, hauling, and/or trucking fee and cost of processing.
Coconut lands
25% of the average normal harvest for a specific area for the preceding 3 calendar years
1. 2. 3.
Abandonment of the landholding; Voluntary surrender (must have 3 months advance notice); or Absence of successors
Value of production cost.
(RA 6657, Section 14)
DISPOSSESSION
1. 2. 3. 4. 5. 6.
7.
Land has been declared to be suited for residential or other urban purposes; Failure of the lessee to substantially comply with any of the terms and conditions and/or provisions of CAR; Lessee misused the landholding for other crops or purposes not agreed upon; Lessee failed to adopt proven farm practices (CAR, Section 29, par 3); Land or other substantial permanent improvement is substantially damaged or destroyed or unreasonably deteriorated; Lessee does not pay the lease rental when it falls due; and Lessee employed a sub-lessee on his landholding.
JUST COMPENSATION 1. 2.
COMPULSORY ACQUISITION AND DISTRIBUTION PROCESS
DETERMINATION VALUATION OF JUST COMPENSATION RECKONING OF VALUATION OF JUST COMPENSATION
Identification by the DAR of the land, landowner and beneficiary; Notice of coverage by DAR to landowner and the price offer (Personal service of notice, by registered mail or posting in a conspicuous place in brgy. hall or municipal hall where the land is located); 3. Reply by the land owner: (Determination of just compensation) a. If land owner accepts, Land Bank will pay the landowner w/in 30 days from execution and delivery of Deed of Transfer; b. If land owner rejects, DAR will determine just compensation thru summary administrative proceedings; c. If landowner disagarees, he may bring the matter to RTC (SAC) for final determination of just compensation. 4. Taking of immediate possession of the land by DAR: a. If landowner receives payment; b. If landowner does not respond to the Notice of Acquisition. 5. DAR will request RD to issue a TCT under the name of Republic of the Philippines; 6. Distribution of the land to qualified beneficiaries. (RA 6657, Section 16) Land Bank of the Philippines (with respect to the valuation or just compensation) by virtue of EO 405 of 1990. (RA 6657, Section 34) Factors: 1. Capitalized Net Income ------land use and productivity; 2. Comparable Sales –----------- 70& BIR zonal value; and 3. Market Value -------------------based on Tax Declaration (RA 6657, Section 17) 1.
Formula: CNI x 0.60 + CS x 0.30 + MV x 0.10 = Land Value -------- All factors are present; CS x 0.90 + MV x 0.10 = Land Value ------------------------ Capitalized Net Income is not present; CNI x 0.90 + MV x 0.10 = Land Value ----------------------- Comparable Sales is not present; and MV X 2 = Land Value ------------------------------------------ CS and CNI are not present
Time of taking of possession; or
2. Time of full payment of just compensation, only in cases of undue delay in payment. (Lubrica v. Land Bank, GR No. 170220, 2006). (RA 6657, Section 17)
Cash and financial instrument a. Lands above 50 hectares -------------------------------------------25% cash and 75% government financial instrument; b. Lands above 24 hectares to 50 hectares –------------------------30% cash and 70% government financial instrument; and c. Lands 24 hectares and below –------------------------------------35% cash and 65% government financial instrument
MODE OF PAYMENT OF
1. 2. 3.
Shares of stocks in government-owned or controlled corporations, preffered shares of the Land Bank, physical assets or other qualified investments; Tax credits which can be used against any tax liability; and Land Bank bonds: a. Bonds shall mature every year until the 10th year; b. Transferable and negotiable; or c. Can be used for:
COMPENSATION
i.
Acquiring land or real property of government, assets of Assets Privatization Program or those foreclosed by government financial institutions (same prov.); ii. Acquisition of shares of stocks of government-owned and controlled corporations or private corporations; iii. Bail bonds; iv. Security loans with government financial institutions; v. Payment for various taxes and fees to government; vi. Payment for tuition of the immediate family member of the original bondholder; vii. Payment for fees of the immediate family member of the original bondholder in government hospitals. (RA 6657, Section 18)
AMORTIZATION 5% of the annual gross production established by DAR
BASIS
SCHEDULE OF PAYMENT
RA 6657 - Thirty (30) annual amortizations per 6% interest per annum. Payment starts 1 year from: a. Date of registration of CLOA; or b. Date of actual occupancy (if occupancy is after registration of CLOA.) PD 27 – Twenty (20) annual amortization plus 6% interest per annum in 20 ewual annual amortizations.
CONVERSION a.
COMPARISON
Conversion Act of changing the current use of a piece of agricultural land or crops into some other use or of the higher value as to the crops.
a. b. c.
Reclassification Act of specifying how agricultural lands shall be utilized for non-agricultural uses as embodied in the land use plan; Subject to the requirements and procedures for land use conversion; Not sufficient to use agricultural land for non-agricultural purpose
APPLICANTS
a. b.
Beneficiary; or Land owner with respect only to his retained area which is tenanted.
PERIOD OF FILLING APPLICATION
a. b.
When land ceases to be economically feasible for agricultural purposes; or Locality has become urbanized.
a. b. c.
LIMITATIONS
CONVERSIONS TO FISHPONDS AND/OR PRAWN FARMS
d.
Lands cannot absolutely be subjected to conversion Agricultural lands within protected areas; All irrigated lands, where water is available to support crop production; All irrigated lands covered by irrigation projects with firm funding committee; and All agricultural lands with irrigation facilities operated by private organizations. (RA 6657, Section 65) Public Agricultural Land
a. b. c. d. e.
Only when the coastal zone is declared suitable for fishpond development by the Provincial Government and BFAR. (RA 6657, Section 65-A)
POST IMPLEMENTATION
Areas highly restricted from conversion Irrigable lands not covered by irrigation projects with firm funding committee; Agro-industrial croplands; Highlands or areas with elevation of 500 meters or above; Lands with notice of land valuation and acquisition, or sunject of perfected agreement between landowner and beneficiaries; Environmentally critical areas (ECAs) Private Agricultural Land Only up to a maximum of 5 hectares; Exceptions: a. When use of the land is more economically feasible and sound for fishpond and/or prawn farm; and b. With simple and absolute majority of regular farm workers or tenants agree to the conversion.
PROHIBITIONS
COMPARISON
ISSUANCE TITLE NAME
Sale or transfer of awarded lands within the period of 10 years. Exceptions: (sell or transfer to the following) a. Through hereditary succession (intestate or by will to compulsory heirs); b. Government; Children or spouse of transferor can repurchase the land within 2 years from date of transfer c. Land Bank of the Philippines; or d. Other qualified beneficiaries (RA 6657, Section 27) CERTIFICATE OF LAND OWNERSHIP AWARD (CLOA) EMANCIPATION PATENT RA 6657 PD 27 a. It will serve as the basis for the issuance of an original transfer a. Vest absolute ownership to farmer-beneficiary over the landholding; b. Constitute conclusive authority for issuance of an original TCT under farmercertificate of title under the farmer-beneficiary’s name.; and b. Indefeasible and imprescriptible after 1 year from the registration in beneficiary’s name; and c. Indefeasible and imprescriptible after 1 year from the registration in RD, RD, subject to qualification, conditions and limitations of CARL) subject to qualification, conditions and limitations of CARL. Upon full payment of the amortization by the farmer-beneficiary. a. b.
a.
a. b. c. d. e. f.
CANCELLATION
JURISDICTION
Individual title; or Collective title (for collective ownership only) (RA 6657, Section 25)
Individual title
Grounds: Abandonment; Neglect or misuse; Failure to pay 3 annual amortizations Misuse or diversion of financial support services; Sale, transfer or conveyance of the rights to use the land; and Illegal conversion
Secretary of Department of Agrarian Reform (Exclusive and original jurisdiction) (RA 6657, Section 24, PD 27)
INCENTIVES a. b. c.
Applies to fishponds and prawn farms; Consists of 7.5% net profit before tax over; Distributed within 60 days at the end of the fiscal year as compensation to: i. Regular pond workers; and ii. Other pond workers (RA 6657, Section 32-A)
VOLUNTARY OFFER FOR SALE
Additional 5% cash payment (applicable only to landowners other than banks and other financial institutions) (RA 6657, Section 19)
SHARES STANDING CROPS
Those unharvested at the time DAR acquired and take possession of the land under RA 6657, Section 16. (Subject to a reasonable time to harvest such crops.) (RA 6657, Section 28)
HOMELOTS AND FARMLOTS
a. b. c.
Lands awarded to worker’s cooperative or association; Homelot and small farmlot with an area not exceeding 1,000 square meters (taken from the land awarded); Can be use as a site of: i.permanent dwelling; ii. raising vegestables; iii.poultry, pigs and other animals; and iv.for engaging in minor industries. d. Existing homelot in landowner’s retained area, shall be transferred to the farmlot of the beneficiaries (cost of transfer shall be shouldered by landowner.) (RA 6657, Section 30)
SUPPORT SERVICES
SUPPORTED SERVICES
FUNDING SYSTEM
1. Irrigation facilities (2nd crop or dry season); 2. Infrastructure development and public works projects under agrarian reform; 3. Government subsidies for irrigation facilities; 4. Price support and guarantee fro all agricultural produce; 5. Extending necessary credits to small landowners, farmers and farmer’s organization (e.g concessional and collateral-free loans); 6. Promoting, developing and extending financial assistance to small and medium scale industries in agrarian reform areas; 7. Assigning sufficient numbers of agricultural extension workers to farmer’s organization; 8. Undertake research, development and dissemination of information on: a. Agrarian reform; b. Plants and crops best suited for cultivation and marketing; and c. Low-cost and ecologically sound farm inputs and technologies. 9. Development of cooperative management skills thru intensive training; 10. Assistance in identification of the ready markets for agricultural produce and training of other various aspects of marketing; 11. Conduct an effective information dissemination system Department of Agriculture; 12. Create a credit guarantee fund for agricultural landowners; and 13. Administration, operation, management and funding of support services programs and projects. (RA 6657, Section 35) a. During the 5-year extension period 40% of all appropriations for agrarian reform shall be made available to cover the expenses and cost of support services; b. For the next 5 years, a minimum of 2 Agrarian Reform Communities shall be established by DAR in each legislative district; *Agrarian reform community is composed of and managed by agrarian reform beneficiaries. c. Agrarian reform beneficiaries not in barangays within ARCs shall be adopted by the DAR (RA 6657, Section 36) a. b.
FOR AGRARIAN REFORM BENEFICIARIES
Land surveys and titling; Socialized terms on agricultural credit facilities; *Agricultural facilities --------------------------------------------------------------------------------------30% of all appropriations in RA 6657, Section 36; *Subsidies to support initial capitalization for agricultural production to-------------------------- 1/3 of segregated appropriation; new agrarian reform beneficiaries upon award of EP or CLOA *For access to socialized credit to existing agrarian reform beneficiaries ---------------------------2/3 of segregated appropriation. and leaseholders *DELIVERY SYSTEM for disbursement of the above financial assistance to individual agrarian reform beneficiaries, holders of collective titles and cooperatives shall be provided by: i. Land Bank of the Philippines; ii.Other concerned government financial institutions, iii.Accredited savings and credit cooperatives; iv.Financial service cooperatives and accredited cooperative banks. All of which may accept purchase orders, marketing agreements or expected harvest as COLLATERAL for loans.
FOR RURAL WOMEN
FOR LANDOWNERS
LAND CONSOLIDATION
LOANS shall be used in improvement or development of the farmholding to enhance production, marketing and/or increase farm income. From the remaining 70% for the support services: A. 15% shall be earmarked for farm inputs (as requested by duly accredited agrarian reform beneficiaries) 1. Seeds, seedlings and/or planting materials; 2. Organic Fertilizers; 3. Pesticides; 4. Herbicides; and 5. Farm animals, implements/machineries B. 5% for seminars, trainings and the like c. Technology transfer; d. Infrastructure (e.g storage facilities, mini dams, etc.); and e. Liberalized access to credits. (RA 6657, Section 37) Guarantee and assurances: a. Equal right to ownership of the land; b. Equal shares of the farm’s produce; and c. Representation in advisory or appropriate decision-making bodies. (RA 6657, Section 37-A) a. Incentives for investing in rural-based industries; b. Land Bank will redeem the landowner’s agrarian reform bond at its face value of at least 50% of the proceeds thereof are invested in a Board of Investmentsregistered company or agro-business enterprise in region covered by CARP; c. Additional 2% cash incentive (Provided that landowner maintained his enterprise as a going concern or kept his investment in BOI-registered firm for 5 years.) (RA 6657, Section 38) a. b. c.
Promote equal distribution of landholdings; Provide the needed infrastructures in agriculture; and Conserve soil fertility and prevent erosion. *All of which shall be carried out by DAR. (RA 6657, Section 39)
