Agrarian Reform

Agrarian Reform

• Agrarian reform can narrowly refer to government-led redistribution of agricultural land
• Agrarian reform can broadly refer to redirection of the agrarian system, which includes land reform measures
• Agrarian reform includes credit measures, training, extension, and land consolidation
• The World Bank assesses agrarian reform using five dimensions: stocks and market liberalization, land reform, agro-processing and input supply chains, urban finance, and market institutions
• Land reform involves changing laws, regulations, or customs regarding land ownership
• Land reform may consist of government-led property redistribution, generally of agricultural land
• It can transfer ownership from powerful to less powerful entities, like from wealthy landowners to land workers
• It may entail transfer of land from individual ownership to government-owned collective farms, or vice-versa
• A common characteristic of land reforms is modifying or replacing existing institutional arrangements governing land possession and use
• Land reform can be radical via large-scale transfers or subtle through administrative reforms

Pre-Spanish Period

• Before the Spaniards, Filipinos lived in villages or barangays ruled by chiefs or datus
• Datus were the nobility, followed by maharlikas (freemen), aliping mamamahay (serfs), and aliping saguiguilid (slaves)
• Everyone had access to the soil's fruits, despite social classes
• Rice was the medium of exchange, as money was unknown

Spanish Period

• The Spaniards introduced the concept of encomienda (Royal Land Grants)
• Encomienderos were to defend the encomienda, maintain order, and support missionaries
• Encomienderos were allowed to collect tribute from the indios (natives)
• The system became abusive, with tributes turning into land rents for powerful landlords
• Natives who cultivated land freely became share tenants

First Philippine Republic

• In 1899, Gen. Emilio Aguinaldo planned to confiscate large estates, especially Friar lands, under the Malolos Constitution
• This plan was not implemented due to the Republic's short existence

American Period

• The Philippine Bill of 1902 set land ownership limits: 16 hectares for private individuals, 1,024 hectares for corporations
• The Land Registration Act of 1902 (Act No. 496) established land title registration under the Torrens system
• The Public Land Act of 1903 introduced the homestead system
• The Tenancy Act of 1933 (Acts No. 4054 & 4113) regulated landowner-tenant relationships in rice (50-50 sharing) and sugar lands
• The Torrens system was incomplete, as many couldn't afford the required fees

Commonwealth Period

• President Manuel L. Quezon initiated the "Social Justice" program to address social unrest in Central Luzon
• The 1935 Constitution stated social justice to ensure well-being and economic security should be the State's concern
• Commonwealth Act No. 178 (1936) controlled landlord-tenant relationships
• NARIC in 1936 stabilized rice and corn prices to aid tenants and consumers
• Commonwealth Act No. 461 (1937) defined reasons for tenant dismissal with Justice Department approval
• The Rural Program Administration (1939) purchased and leased haciendas
• Commonwealth Act No. 441 (1939) established the National Settlement Administration with a capital stock of P20,000,000

Japanese Occupation

• WWII began in Europe in 1939 and in the Pacific in 1941
• Hukbalahap controlled areas of Central Luzon
• Landlords supporting the Japanese lost land to peasants supporting the Huks, who earned fixed rentals
• The end of the war negatively impacted peasant gains
• Peasant and worker organizations grew in strength during the Japanese arrival in 1942
• Many peasants joined the anti-Japanese group, HUKBALAHAP (Hukbo ng Bayan Laban sa Hapon)

Philippine Republic

• Land tenure problems persisted post-Philippine Independence in 1946 and worsened in some areas, leading to tenancy law revisions by Congress
• President Manuel A. Roxas (1946-1948): Republic Act No. 34 established the 70-30 sharing arrangements and share-tenancy contracts; Republic Act No. 55 safeguarded tenants’ protection against arbitrary eviction
• President Elpidio R. Quirino (1948-1953): Executive Order No. 355 (October 23, 1950) replaced the National Land Settlement Administration with the Land Settlement Development Corporation (LASEDECO)
• LASEDECO was responsible for the Agricultural Machinery Equipment Corporation and the Rice and Corn Production Administration
• President Ramon Magsaysay (1953-1957): Republic Act No. 1160 of 1954 abolished LASEDECO and established the National Resettlement and Rehabilitation Administration (NARRA)
• NARRA resettled dissidents and landless farmers, particularly rebel returnees in Palawan and Mindanao
• Republic Act No. 1199 (Agricultural Tenancy Act of 1954) governed landowner-tenant relations by organizing share-tenancy and leasehold systems
• The Agricultural Tenancy Act of 1954 provided tenure security and established the Court of Agrarian Relations
• Republic Act No. 1400 (Land Reform Act of 1955) created the Land Tenure Administration (LTA)
• LTA was responsible for acquiring/distributing tenanted rice/corn lands exceeding 200 hectares for individuals and 600 for corporations
• Republic Act No. 821 (Creation of Agricultural Credit Cooperative Financing Administration) provided small farmers and share tenants' loans at 6-8% interest
• President Carlos P. Garcia (1957-1961) continued President Ramon Magsaysay's programs but enacted no new legislation
• President Diosdado P. Macapagal (1961-1965): Republic Act No. 3844 (August 8, 1963), the Agricultural Land Reform Code abolished share tenancy and institutionalized leasehold
• Act No. 3844 set a retention limit at 75 hectares, invested rights of preemption and redemption for tenant farmers
• Act No. 3844 provided administrative machinery, a judicial system for agrarian cases, extension, marketing, and supervised credit for farmer beneficiaries
• The Agricultural Land Reform Code of 1963 was intended to emancipate Filipino farmers from tenancy bondage
• President Ferdinand E. Marcos (1965-1986): Proclamation No. 1081 (September 21, 1972) ushered in the Period of the New Society

Agrarian Reform under President Marcos

• The entire country was declared a land reform area, and the Agrarian Reform Program was decreed
• Republic Act No. 6389 and RA No. 6390 (1971) created the Department of Agrarian Reform and the Agrarian Reform Special Account Fund
• Republic Act No. 6389 and RA No. 6390 strengthened the position of farmers and expanded the scope of agrarian reform
• Presidential Decree No. 2 (September 26, 1972) declared the country under land reform
• Presidential Decree No. 2 enjoined government agencies to cooperate with the DAR and activated the Agrarian Reform Coordinating Council
• Presidential Decree No. 27 (October 21, 1972) restricted land reform to tenanted rice and corn lands, setting a retention limit of 7 hectares

Agrarian Reform under President Corazon C. Aquino

• The Constitution ratified during President Corazon C. Aquino's administration stated the State should promote comprehensive rural development and agrarian reform
• On June 10, 1988, President Aquino signed the Comprehensive Agrarian Reform Law (CARL) or Republic Act No. 6657, effective June 15, 1988
• Four Presidential issuances were released in July 1987 after 48 nationwide consultations before the law was enacted
• Executive Order No. 228 (July 16, 1987) declared full ownership to qualified farmer-beneficiaries covered by PD 27
• Executive Order No. 228 determined the value of remaining unvalued rice and corn lands under PD 27 and provided payment terms for beneficiaries and compensation for landowners
• Executive Order No. 229 (July 22, 1987) provided mechanisms for implementing the Comprehensive Agrarian Reform Program (CARP)
• Proclamation No. 131 (July 22, 1987) instituted CARP as a major government program
• It provided a special fund, the Agrarian Reform Fund (ARF), with an initial Php50 billion for program costs from 1987-1992
• Executive Order No. 129-A (July 26, 1987) streamlined and expanded the powers and operations of the DAR
• Republic Act No. 6657 (June 10, 1988), effective June 15, 1988, instituted a comprehensive agrarian reform program for social justice and industrialization
• Republic Act No. 6657 is still being implemented
• Executive Order No. 405 (June 14, 1990) vested the Land Bank of the Philippines with responsibility for land valuation and compensation under CARP
• Executive Order No. 407 (June 14, 1990) accelerated acquisition and distribution of agricultural, pasture, fishpond, agro-forestry, and public domain lands suitable for agriculture

Agrarian Reform under President Fidel V. Ramos

• President Fidel V. Ramos faced public skepticism about agrarian reform upon taking office in 1992
• Ramos' administration aimed for a "Fairer, faster and more meaningful implementation" of CARP
• Republic Act No. 7881 (1995) amended RA 6657 and exempted fishponds and prawns from CARP coverage
• Republic Act No. 7905 (1995) strengthened CARP implementation
• Executive Order No. 363 (1997) limited land types convertible by setting conditions for conversion, categorizing agricultural land as either non-negotiable or highly restricted for conversion
• Republic Act No. 8435 (1997), the Agriculture and Fisheries Modernization Act (AFMA), plugged legal loopholes in land use conversion.
• Republic Act 8532 (1998), the Agrarian Reform Fund Bill, provided an additional Php50 billion for CARP and extended its implementation for 10 years

Agrarian Reform under President Joseph Estrada

• President Joseph Estrada’s battle cry was "ERAP PARA SA MAHIRAP"
• President Estrada initiated Executive Order No. 151 (September 1999), the Farmer’s Trust Fund, allowing voluntary consolidation of small farms into larger enterprises for long-term capital access
• Estrada launched the Magkabalikat Para sa Kaunlarang Agraryo or MAGKASAKA
• Under Estrada the DAR entered joint ventures with private investors in the agrarian sector to make farmer beneficiaries competitive

Agrarian Reform under President Gloria Macapagal-Arroyo

• The agrarian reform program sought to make the countryside economically viable for Filipino families through partnerships, social equity, and economic opportunities for lasting peace and sustainable development
• The DAR focused on land tenure improvement through land acquisition, distribution, and leasehold
• The DAR also provided support services, involving credit assistance, extension services, irrigation facilities, roads and bridges, marketing facilities, and training and technical support programs
• Infrastructure Projects: DAR transformed agrarian reform communities (ARCs) into rural economic zones
• KALAHI ARZone: KALAHI Agrarian Reform (KAR) Zones were launched to consist of high ARC population municipalities
• Agrarian Justice sought to clear the backlog of agrarian cases, DAR hired more paralegal officers, introduced quota systems, and respected the rights of both farmers and landowners

Agrarian Reform under President Benigno Aquino III

• President Benigno Aquino III pledged to complete the Comprehensive Agrarian Reform Program (CARP) by the end of his term during his 2012 State of the Nation Address
• Aquino distributed Hacienda Luisita in Tarlac, which belonged to his family
• He vowed to distribute privately owned productive agricultural estates that had escaped CARP coverage
• The Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS) project sought to lower rural poverty in agrarian reform areas
• The Agrarian Production Credit Program (APCP) offered credit support for crop production to the agrarian reform beneficiaries and farmers' organizations
• Aquino enacted Executive Order No. 26, Series of 2011 to mandate the Department of Agriculture-Department of Environment and Natural Resources-Department of Agrarian Reform Convergence Initiative to develop a National Greening Program

Agrarian Reform under President Rodrigo Roa Duterte

• President Rodrigo Roa Duterte pursued an "aggressive" land reform program to improve the lives of poor Filipino farmers by prioritizing supporting services and land distribution
• Duterte directed the DAR to start the 2nd phase of agrarian reform and award undistributed lands to landless farmers for CARP
• Duterte planned to place almost all public lands, including military reserves, under agrarian reform
• Duterte placed 400 hectares of agricultural lands in Boracay under CARP
• The DAR created an anti-corruption task force to investigate and handle reports on alleged anomalous activities by officials and employees of the department

Lands Covered by the Agrarian Reform Law and Its Exclusions

• The Comprehensive Agrarian Reform Law covers public and private agricultural lands including other public domain lands suitable for agriculture
• All alienable and disposable public domain lands for agriculture are covered
• Forest or mineral lands cannot be reclassified as agricultural until Congress sets limits
• All public domain lands exceeding specific limits set by Congress are covered
• All government-owned lands for agriculture are covered
• All private lands for agriculture are covered
• Private lands with a total area of five hectares and below are not covered
• Lands for parks, wildlife, forest reserves, reforestation, fish sanctuaries, watersheds, and mangroves are not covered
• Lands needed for national defense and school sites, experimental farm stations operated by schools, and seeds/seedlings research are not covered
• Church sites, convents, mosque sites, Islamic centers, communal burial grounds, penal colonies, government and private research/quarantine centers, and lands with 18% slope and over are not covered
• Private lands used for prawn farms and fishponds are not covered
• Agrarian reform law applies to land specifically mentioned, but not the examples above

The Philippine Constitution

• The Philippine Constitution is defined as the Supreme Law of the Land
• The Philippine Constitution is an aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organization, or other entity
• The Philippine Constitution is the body of principles in accordance with which the powers of sovereignty are regularly exercised.

Purpose of the Constitution

• To prescribe the permanent framework of a system of government
• To assign to the several departments their respective powers and duties
• To establish certain first principles on which the government is founded

Types of Constitution

• Written Constitution: Precepts are embodied in one document or set of documents
• Unwritten Constitution: Rules have not been integrated into a single form but are scattered in various sources
• Conventional Constitution: Formally struck off at a definite time and place after a deliberate effort by a constituent body or ruler
• Cumulative Constitution: Result of political evolution, not inaugurated at any specific time, but changing by accretion
• Rigid Constitution: Can only be amended by a formal and difficult process
• Flexible Constitution: Can be changed by ordinary legislation; Philippine Constitution is written, conventional, and rigid

Qualities of a Good Written Constitution

• Broad: Comprehensive enough to provide for every contingency
• Brief: Confined to basic principles to be implemented with adaptable legislative details
• Definite: Prevents ambiguity in its provisions to avoid confusion and divisiveness

Essential Parts of a Good Written Constitution

• Constitution of Liberty: Prescriptions setting forth the fundamental civil and political rights of citizens, limitations on government powers
• Constitution of Government: Provisions outlining government organization, powers, rules, administration, and defining the electorate
• Constitution of Sovereignty: Provisions that point out the procedure to bring about formal changes in the fundamental law

Constitution Amendments and Revision

• Amendment: A change adding, reducing, or deleting without altering basic principles, generally affecting only a specific provision
• Revision: Broadly implies a change altering at least one basic principle, such as separation of powers or the system of check and balances, and affects several provisions of the constitution

Brief History of the Philippine Constitution: The Malolos Constitution

• The Philippine Revolution of 1896 occurred
• Philippine independence was proclaimed at Kawit, Cavite, on June 12, 1898
• On September 15, 1898, The Revolutionary Congress convened at Barasoain Church, Malolos, Bulacan
• Pedro Paterno, Apolinario Mabini and Felipe Calderon submitted drafts
• On October 8, 1898, The Calderon proposal was reported to the Congress
• On November 29, 1898, Congress approved the proposed Constitution
• On December 23, 1898, President Emilio Aguinaldo approved the same
• On January 20, 1899, Congress ratified it
• On January 21, 1899, Aguinaldo promulgated the Constitution along with the establishment of the Philippine Republic
• The Constitution recognized sovereign power in the people
• Provided a parliamentary government, separation of powers, and a bill of rights

Brief History of the Philippine Constitution: The 1935 Constitution

• The Treaty of Paris in Washington D.C in 1898 ceded the Philippines to the US for $20,000,000 paid to Spain
• The Filipino-American War erupted in 1899
• The country was under military government until 1901 with the Spooner Amendment
• Civil government with William H. Taft as the first civil governor superseded military rule
• Ratification of the Philippine Bill of 1902 called for a lower legislative branch of elected Filipino legislators
• The Jones Law in August 1916 gave Filipinos the opportunity to govern themselves better.
• The organization of constitutional Convention that would draw up the fundamental law of the land based on the American model
• Delegates to the convention were subsequently elected in 1934
• Claro M. Recto was unanimously elected President during the first meeting held on July 30 at the session of the House of Representatives.
• Salient features: A bicameral legislature, a President elected to a four-year term with the Vice-President without re-election, rights of suffrage extended to male citizens 21 and over who can read and write, and extended suffrage to women within two years of adoption
• The Constitution provided the legal basis of the Commonwealth Government

Brief History of the Philippine Constitution: The 1973 Constitution

• Resolution of Both Houses (RBH) No. 1 increased the membership of the House of Representatives from 120 to 180
• RBH No. 2 called for a Constitutional Convention to revise the 1935 Constitution
• RBH No. 3 allowed members of Congress to sit as delegates in the Constitutional Convention without forfeiting their seats in Congress
• RBH 1 and RBH 3 were submitted to the people in a plebiscite simultaneously with local elections but were rejected by the people
• RBH No. 4 authorized that specific apportionment of delegates to the Constitutional Convention and other details relating to the election of delegates be embodied in an implementing legislation
• Republic Act No. 6132: Constitutional Convention Act of 1970
• The Constitutional Convention was inaugurated on June 1, 1971
• Proclamation No. 1081 declared martial law by President Ferdinand E. Marcos
• The Constitutional Convention approved the draft Constitution on November 29, 1972
• Presidential Proclamation No. 1102 declared the new Constitution had been ratified by the Citizens Assemblies
• The 1973 Constitution was amended in 1976
• Another amendment was adopted on April 7, 1981: Restored the presidential system

Brief History of the Philippine Constitution: The 1987 Constitution

• Proclamation No. 1 announced that Cory Aquino was and VP Laurel were assuming power
• Executive Order No. 1 followed
• Proclamation No. 3 announced the promulgation of the Provisional Constitution
• It adopted provisions of the 1973 Constitution, contained additional articles on the executive department, on government reorganization, and on existing laws
• It also provided for a Constitutional Commission to be composed of 30-50 members, to draft a new Constitution
• Proclamation No. 3 stated that the EDSA revolution was “done in defiance of the 1973 Constitution”
• The approval of draft Constitution occurred by the Constitutional Commission on October 15, 1986.
• A plebiscite was held on February 2, 1987
• Proclamation No. 58 proclaiming the ratification of the Constitution also occurred
• The effectivity date of the 1987 Constitution was February 2, 1987
• The 1987 Constitution has 18 articles
• The 1987 Constitution has the independence of the judiciary
• The 1987 Constitution has the Bill of Rights and a Commission of Human Rights

Taxation

• Taxation is the inherent power of the state to demand enforced contributions for public purposes.
• Taxation is the power by which the sovereign raises revenue to defray government expenses.
• Taxation apportions expenses of government among those who enjoy its benefits.
• Taxes are enforced proportional contributions from persons and property, levied by the state for public needs.
• Taxation covers persons, property, or occupation within the taxing jurisdiction.
• It is inherent in the power to tax that a State be free to select the subjects of taxations.
• The legislature exercises such power, but upon valid delegation, LGUs and the President, with power granted by Congress, may also tax.
• Taxes are collected for revenue raising and non-revenue/sumptuary purposes
• Non-revenue purposes include promotion of general welfare, regulation, reducing social inequality, encourage economic growth and protectionism.

Limitations on the Power of Taxation

• Inherent limitations includes Situs or Territoriality of Taxation, Public Purpose, International Comity, Non-delegability of power, and Exemption of government from taxation
• Constitutional Limitation includes Due Process of Law and Equal Protection of Law

Theories of Taxation

• Necessity Theory: Government needs a means to pay its expenses, compulsory contributions
• Benefits – Obligation to pay taxes is involuntary and compulsory, in exchange for the protection and benefits

Principles of a Sound Tax System

• Fiscal Adequacy: Government revenue must be sufficient to meet expenditures and other public needs
• Administrative Feasibility: Tax laws must be capable of being effectively enforced with the least inconvenience to the taxpayer
• Theoretical Justice: A sound tax system must be based on the taxpayers’ ability to pay

Scope of Legislative Taxing Power

• Subjects of taxation include persons, property, or occupation
• The amount or rate should be considered
• Purposes for which taxes shall be levied provided they are public purpose
• Apportionment of the tax
• Situs of taxation
• Method of collection

Forms of Escape from Taxation

• Forms of escape include exemptions, avoidance, and evasion
• Tax Exemption: No law granting any tax exemptions shall be passed without the concurrence of a majority of all the members of the Congress
• The power to exempt from taxations is an essential attribute of sovereignty
• Kinds of tax exemptions include Express, Implied and Contractual
• Tax Avoidance: Reducing/avoiding tax payments through legally permissible means, should be at arm's length
• Tax Evasion: Illegal means of escaping taxation

More Taxation Information

• Taxes cannot be the subject of compensation because the government and taxpayer are not mutually creditors
• Tax Amnesty: State's waiver to impose penalties on those involved with tax evasion
• Sources of tax laws include the Constitution, the Tariff and Custom Code, the Local Government Code, Tax Treaties/International Agreements, Presidential Decree/ Executive Order, Decisions of SC/CTA/CA, Revenue Rules and Regulations, Rulings implemented by the BIR, and the NIRC
• National taxes in the Philippines include income tax, estate tax, donor's tax, value-added tax, excise tax, and documentary stamp tax