Policies on Agrarian Reform in the Philippines PDF

Page | 1 POLICIES ON AGRARIAN REFORM Agrarian reform is essentially the rectification of the whole system of agriculture, an important aspect of the Philippine economy because nearly half of the population is employed in the agricultural sector, and most citi...

Page | 1 POLICIES ON AGRARIAN REFORM Agrarian reform is essentially the rectification of the whole system of agriculture, an important aspect of the Philippine economy because nearly half of the population is employed in the agricultural sector, and most citizens live in rural areas. Agrarian reform is centered on the relationship between production and the distribution of land among farmers. It is also focused on the political and economic class character of the relations of production and distribution in farming and related enterprises, how these connect to the wider class structure. Through genuine and comprehensive agrarian reform, the Philippines would be able to gain more from its agricultural potential and uplift the Filipinos in the agricultural sector, who have been, for the longest time, suffering in poverty and discontent. In our attempt to understand the development of agrarian reform in the Philippines, we turn our attention to our country’s history, especially our colonial past, where we could find the root of the agrarian woes the country has experienced up to this very day. Landownership in the Philippines under Spain When the Spaniards colonized the country, they brought with them a system of pueblo agriculture, where rural communities, often dispersed and scattered in nature, were organized into pueblo and given land to cultivate. Families were not allowed to own their land - the King of Spain owned the land, and Filipinos were assigned to these lands to cultivate them, and they paid their colonial tributes to the Spanish authorities in the form of agricultural products. Later on, through the Law of the Indies, the Spanish crown awarded tracts of land to (1) religious orders; (2) repartamientos for Spanish military as reward for their service; (3) Spanish encomenderos, those mandated to manage the encomienda or the land given to them, where Filipinos worked and paid their tributes to the encomendero. Filipinos were not given the rights to own land, and only worked in them so that they might have a share of the crops and pay tribute. The encomienda system was an unfair and abusive system as “compras y vandalas” became the norm for the Filipino farmers working the land - they were made to sell their products at a very low price or surrender their products to the encomenderos, who resold this at a profit. Filipinos in the encomienda were also required to render services to their encomenderos that were unrelated to farming. From this encomienda system, the hacienda system developed in the beginning of the nineteenth century as the Spanish government implemented policies that would fast track the entry of the colony into the capitalist world. The economy was tied to the world market as the Philippines became an exporter of raw materials and importer of goods. Agricultural exports were demanded and the hacienda system was developed as a new form of ownership. In the 1860s, Spain enacted a law ordering landholders to register their landholdings, and only those who knew benefitted from this. Lands were claimed and registered in other people’s names, and many peasant families who were “assigned” to the land in the earlier days of colonization were driven out or forced to come under the power of these people who claimed rights to the land because they held a title. This is the primary reason why revolts in the Philippines were often agrarian in nature. Before the colonization, Filipinos had communal ownership of land. The system introduced by the Spaniards became a bitter source of hatred and discontent for the Filipinos. Religious order, the biggest landowners in the Philippines, also became a main source of abuse and exploitation for the Filipinos, increasing the rent paid by the Filipinos on a whim.  Page | 2 Filipinos fought the Philippine Revolution in a confluence of motivations, but the greatest desire for freedom would be the necessity of owning land. Upon the end of the Philippine Revolution, the revolutionary government would declare all large landed estates, especially the confiscated friars land as government property. However, the first Philippines republic was short-lived. The entrance of the Americans would signal a new era of colonialism and imperialism in the Philippines. Landownership in the Philippines under the Americans The Americans were aware that the main cause of social unrest in the Philippines was landlessness, and they attempted to put an end to the deplorable conditions of the tenant farmers by passing several land policies to increase the small landholders and distribute ownership to a bigger number of Filipino tenants and farmers. The Philippines Bill of 1902 provided regulations on the disposal of public lands. A private individual may own 16 hectares of land while corporate landholders may have 1,024 hectares. Americans were also given rights to own agricultural lands in the country. The Philippine Commission also enacted Act No. 496 or the Land Registration Act, which introduced the Torrens system to address the absence of earlier records of issued land titles and conduct accurate land surveys. In 1903, the homestead program was introduced, allowing a tenant to enter into an agricultural business by acquiring a farm of at least 16 hectares. This program, however, was limited to areas in Northern Luzon and Mindanao, where colonial penetration had been difficult for Americans, a problem they inherited from the Spaniards. Landownership did not improve during the American period; in fact, it even worsened, because there was no limit to the size of landholdings people could possess and the accessibility of possession was limited to those who could afford to buy, register, and acquire fixed property titles. Not all friar lands acquired by the Americans were given to landless peasant farmers. Some lands were sold or leased to American and Filipino business interest. This early land reform program was also implemented without support mechanism if a landless peasant farmer received land, he only received land, nothing more. Many were forced to return to tenancy and wealthy Filipino hacienderos purchased or forcefully took over lands from farmers who could not afford to pay their debts. The system introduced by the Americans enabled more land to be placed under tenancy, which led to widespread peasant uprising, such as the Colorum and Sakdal Uprising in Luzon. Peasants and workers found refuge from millenarian movements that gave them hope that change could still happen through militancy. The Sakdal (or Sakdalista) Uprising was a peasant rebellion in Central Luzon that lasted for two days, May 2-3, 1935. It was easily crushed by government forces then, but this historical event tells of the social inequality brought about by issues in land ownership and tenancy in the country. The Filipino word sakdal means “to accuse,” which is the title of the newspaper helmed by Benigno Ramos. He rallied support from Manila and nearby provinces through the publication, which led to the establishment of the Partido Sakdalista in 1933. They demanded reforms from the government such as the abolition of taxes and “equal or common” ownership of land, among others. They also opposed the dominant Nacionalista Party’s acceptance of gradual independence from the United States, and instead demanded immediate severance of ties with America. For a new party with a small clout, they did well in the 1934 general elections, scoring three seats in the House of Representatives and several local posts. This encouraged them to attempt an uprising in 1935. Upon being crushed, Ramos fled to Tokyo and the Partido Sakdalista collapsed. During the years of the Commonwealth government, the situation further worsened as peasant uprising increased and landlord-tenant relationship became more and more disparate. President Quezon laid down a social justice program focused on the purchase of haciendas, which were to be divided and sold to tenants. His administration also created the National Rice and Corn Corporation (NARIC) to  Page | 3 assign public defenders to assist peasant in court battles for their rights to the land, and the Court of Industrial Relations to exercise jurisdiction over disagreements arising from landowner-tenant relationship. The homestead program also continued through the National Land Settlement Administration (NLSA). Efforts towards agrarian reform by the Commonwealth failed because of many problems such as budget allocation for the settlement program and widespread peasant uprising. World War II put a halt to all interventions to solve these problems as the Japanese occupied the country. Post-War Interventions Toward Agrarian Reform Rehabilitation and rebuilding after the war were focused on providing solutions to the problems of the past. The administration of President Roxas passed Republic Act No. 34 to establish a 70-30 sharing arrangement between tenant and landlord, respectively, which reduced the interest of landowners’ loan to tenants at six percent or less. The government also attempted to redistribute hacienda lands, falling prey to the woes of similar attempts since no support was given to small farmers who were given lands. Under the term of President Elpidio Quirino, the Land Settlement Development Corporation (LASEDECO) was established to accelerate and expand the resettlement program for peasants. This agency later on became the National Resettlement and Rehabilitation Administration (NARRA) under the administration of President Ramon Magsaysay. Magsaysay saw the importance of pursuing genuine land reform program and convinced the congress, majority of which were landed elites, to pass legislation to improve the land reform situation. Republic Act No. 1199 or the Agricultural Tenancy Act was passed to govern the relationship between landholders and tenant farmers, protecting the tenurial rights of tenants and enforced tenancy practices. Through this law, the Court of Agricultural Relations was created in 1955 to improve tenancy security, fix land rentals of tenanted farms, and resolve land disputes filed by the landowners and peasant organizations. The Agricultural Tenancy Commission was also established to administer problems created by tenancy. The Agricultural Credit and Cooperative Financing Administration (ACCFA) was also created mainly to provide warehouse facilities and assist farmers in marketing their products. The administration spearheaded the establishment of the Agricultural and Industrial Bank to provide easier terms in applying for homestead and other farmlands. NARRA accelerated the government’s resettlement program and distribution of agricultural lands to landless tenants and farmers. It also aimed to convince members of the Huks, a movement of rebel in Central Luzon to resettle in areas where they could restart their lives as peaceful citizens. Despite a more vigorous effort towards agrarian reform, the situation for the farmers remained dire since the government lacked funds and provided inadequate support services for the programs. The landed elite did not fully cooperate and they criticized the programs. A major stride in land reform arrived during the term of President Diosdado Macapagal through the Agricultural Land Reform Code ( Republic Act No. 3844). Primary Source: Declaration of Policy under RA No. 3844 or Agricultural Land Reform Code Source: Section 2. Declaration of Policy - It is the policy of the State: (1) To established owner-cultivatorship and the economic family size farm as the basis of Philippine agriculture and, as a consequence, divert landlord capital in agriculture to industrial development;  Page | 4 (2) To achieve a dignified existence for the small farmers free from pernicious institutional restraints and practices; (3) To create a truly viable social and economic structure in agriculture conducive to greater productivity and higher farm incomes; (4) To apply all labor laws equally and without discrimination to both industrial and agricultural wage earners; (5) To provide a more vigorous and systematic land resettlement program and public land distribution; and (6) To make the small farmers more independent, self-reliant and responsible citizens, and a source of genuine strength in our democratic society. This Code abolished share tenancy in the Philippines and prescribed a program to convert tenant-farmers to lessees and later on owner-cultivators. It also aimed to free tenants from tenancy and emphasize owner-cultivatorship and farmers independence, equity, productivity improvement, and public land distribution. Despite being one of the most comprehensive pieces of land reform legislation ever passed in the Philippines, Congress did not make any effort to come up with a separate bill to fund its implementation, despite the fact that it proved beneficial in the provinces where it was pilot tested. Agrarian Reform Efforts under Marcos President Marcos declared Martial Law in 1972, enabling him to essentially wipe out the landlord-dominated Congress. Through his “technocrats,” he was able to expand executive power to start a “fundamental restructuring” of government, including its efforts in solving the deep structural problems of the countryside. Presidential Decree No. 27 or the Code of Agrarian Reform of the Philippines became the core of agrarian reform during Marcos regime. Primary Source: Presidential Decree No. 27, 21 October 1972 This shall apply to tenant farmers of private agricultural lands primarily devoted to rice and corn under a system of sharecrop or lease-tenancy, whether classified as landed estate or not; The tenant farmer, whether in land classified as landed estate or not, shall be deemed owner of a portion constituting a family-size farm of five (5) hectares if not irrigated and three (3) hectares if irrigated; In all cases, the landowners may retain an area of not more than seven (7) hectares if such landowner is cultivating such area or will now cultivate it; For the purpose of determining the cost of the land to be transferred to the tenant-farmer pursuant to this Decree, the value of the land shall be equivalent to two and one-half (2 1/2) times the average harvest of three normal crop years immediately preceding the promulgation of this Decree; The total cost of the land, including interest at the rate of six (6) per centum per annum, shall be paid by the tenant in the fifteen (15) years of fifteen (15) equal annual amortizations; In case of default, the amortization due shall be paid by the farmers’ cooperative in which the defaulting tenant-farmer is a member, with the cooperative having a right of recourse against him;  Page | 5 The government shall guaranty such amortizations with shares of stock in government-owned and government-controlled corporations; No title to the land owned by the tenant-farmers under this Decree shall be actually issued to a tenant-farmer unless and until the tenant-farmer has become a full-fledged member of a duly recognized farmer’s cooperative; Title to land acquired pursuant to this Decree or the Land Reform Program of the Government shall not be transferable except by hereditary succession or to the Government in accordance with the provision of this Decree, the Code of Agrarian Reforms and other existing laws and regulations; The Department of Agrarian Reform through its Secretary is hereby empowered to promulgate rules and regulations for the implementation of this Decree. “Operation Land Transfer” on land occupied by tenants of more than seven hectares on rice and corn land commenced, and through legal compulsion and an improved delivery of support services to small farmers, agrarian reform seemed to be finally achievable. Under the rice self-sufficiency program “Masagana ’99,” farmers were able to borrow from banks and purchase three-hectare plots of lands and agricultural inputs. However, the landlord class still found ways to circumvent the law. Because only rice lands were the focus of agrarian reform, some landlords only needed to change crops to be exempted from the program, such as coconut and sugar lands. Lands worked by wage labor were also exempted from the program, so the landed elite only had to evict their tenants and hired workers instead. Landlessness increased, which made it all the more difficult for the program to succeed because landless peasants were excluded from the program. Many other methods were employed by the elite to find a way to maintain their power and dominance, which were worsened by the corruption of Marcos and his cronies who were also involved in the agricultural sector. Post-1986 Agrarian Reform The overthrow of Marcos and the 1987 Constitution resulted in a renewed interest and attention to agrarian reform as President Corazon Aquino envisioned agrarian reform to be the centerpiece of her administration’s social legislation, which proved difficult because her background betrayed her, she came from a family of a wealthy and landed clan that owned the Hacienda Luisita. On 22 July 1987, Aquino issued Presidential Proclamation 131 and Executive Order 229, which outlined her land reform program. In 1988, the Congress passed Republic Act No. 6657 or the Comprehensive Agrarian Reform Law (CARL), which introduced the program with the same name (Comprehensive Agrarian Reform Program or CARP). It enabled the redistribution of agricultural lands to tenant-farmers from landowners, who were paid in exchange by the government through just compensation and allowed them to retain not more than five hectares. Corporate landowners were, however, allowed under law to voluntarily divest a proportion of their capital stock, equity, or participation in favor of their workers or other qualified beneficiaries instead of turning over their land to the government. CARP was limited because it accomplished very little during the administration of Aquino. It only accomplished 22.5% of land distribution in six years owing to the fact that Congress, dominated by the landed elite, was unwilling to fund the high compensation cost of the program. It was also mired with controversy, since Aquino seemingly bowed down to the pressure of her relatives by allowing the stock redistribution option. Hacienda Luisita reorganized itself into a corporation and distributed stocks to farmers.  Page | 6 Under the term of President Ramos, CARP implementation was speeded in order to meet the ten-year time frame, despite limitations and constraints in funding, logistics, and participation of involved sectors. By 1996, the Department of Agrarian Reform (DAR) distributed only 58.25% of the total area target to be covered by the program. To address the lacking funding and the dwindling time for the implementation of CARP, Ramos signed Republic Act No. 8532 in 1998 to amend CARL and extend the program to another ten years. CARPER and the Future of Agrarian Reform in the Philippines The new deadline of CARP expired in 2008, leaving 1.2 million farmer beneficiaries and 1.6 million hectares of agricultural land to be distributed to farmers. In 2009, President Arroyo signed Republic Act No. 9700 or the Comprehensive Agrarian Reform Program Extension with Reforms (CARPER), the amendatory law that extended the deadline to five more years. Section 30 of the law also mandates that any case and/or proceeding involving the implementation of the provisions of CARP, as amended, which may remain pending on 30 June 2014 shall be allowed to proceed to its finality and executed even beyond such date. From 2009 to 2014, CARPER has distributed a total of 1 million hectares of land to 900,000 farmer-beneficiaries. After 27 years of land reform and two Aquino administrations, 500,000 hectares of lands remain undistributed. The DAR and the Department of Environment and Natural Resources (DENR) are the government agencies mandated to fulfill CARP and CARPER, but even the combined effort and resources of the two agencies have proved incapable of fully achieving the goal of agrarian reform in the Philippines. The same problems have plagued its implementation: the powerful landed elite and the ineffectual bureaucracy of the Philippine government. Until these two challenges are surmounted, genuine agrarian reform in the Philippines remains but a dream to Filipino farmers who have been fighting for their right to landownership for centuries.  Page | 7 AGRARIAN REFORM HISTORY Pre-Spanish Period “This land is Ours, God gave this land to us” Before the Spaniards came to the Philippines, Filipinos lived in villages or barangays ruled by chiefs or datus. The datus comprised the nobility. Then came the maharlikas (freemen), followed by the aliping namamahay (serfs) and aliping saguiguilid (slaves). However, despite the existence of different classes in the social structure, practically everyone had access to the fruits of the soil. Money was unknown, and rice served as the medium of exchange. Spanish Period “United we stand, divided we fall” When the Spaniards came to the Philippines, the concept of encomienda (Royal Land Grants) was introduced. This system grants that Encomenderos must defend his encomienda from external attack, maintain peace and order within, and support the missionaries. In turn, the encomiendero acquired the right to collect tribute from the indios (native). The system, however, degenerated into abuse of power by the encomenderos The tribute soon became land rents to a few powerful landlords. And the natives who once cultivated the lands in freedom were transformed into mere share tenants. First Philippine Republic “The yoke has finally broken” When the First Philippine Republic was established in 1899, Gen. Emilio Aguinaldo declared in the Malolos Constitution his intention to confiscate large estates, especially the so-called Friar lands. However, as the Republic was short-lived, Aguinaldo’s plan was never implemented. American Period “Long live America” Significant legislation enacted during the American Period: Philippine Bill of 1902 – Set the ceilings on the hectarage of private individuals and corporations may acquire: 16 has. for private individuals and 1,024 has. for corporations. Land Registration Act of 1902 (Act No. 496) – Provided for a comprehensive registration of land titles under the Torrens system. Public Land Act of 1903 – introduced the homestead system in the Philippines. Tenancy Act of 1933 (Act No. 4054 and 4113) – regulated relationships between landowners and tenants of rice (50-50 sharing) and sugar cane lands.  Page | 8 The Torrens system, which the Americans instituted for the registration of lands, did not solve the problem completely. Either they were not aware of the law or if they did, they could not pay the survey cost and other fees required in applying for a Torrens title. Commonwealth Period “Government for the Filipinos” President Manuel L. Quezon espoused the "Social Justice" program to arrest the increasing social unrest in Central Luzon. Significant legislation enacted during Commonwealth Period: 1935 Constitution – "The promotion of social justice to ensure the well-being and economic security of all people should be the concern of the State" Commonwealth Act No. 178 (An Amendment to Rice Tenancy Act No. 4045), Nov. 13, 1936 – Provided for certain controls in the landlord-tenant relationships National Rice and Corn Corporation (NARIC), 1936 – Established the price of rice and corn thereby help the poor tenants as well as consumers. Commonwealth Act. No. 461, 1937 – Specified reasons for the dismissal of tenants and only with the approval of the Tenancy Division of the Department of Justice. Rural Program Administration, created March 2, 1939 – Provided the purchase and lease of haciendas and their sale and lease to the tenants. Commonwealth Act No. 441 enacted on June 3, 1939 – Created the National Settlement Administration with a capital stock of P20,000,000. Japanese Occupation “The Era of Hukbalahap” The Second World War started in Europe in 1939 and in the Pacific in 1941. Hukbalahap controlled whole areas of Central Luzon; landlords who supported the Japanese lost their lands to peasants while those who supported the Huks earned fixed rentals in favor of the tenants. Unfortunately, the end of war also signaled the end of gains acquired by the peasants. Upon the arrival of the Japanese in the Philippines in 1942, peasants and workers organizations grew strength. Many peasants took up arms and identified themselves with the anti-Japanese group, the HUKBALAHAP (Hukbo ng Bayan Laban sa Hapon). Philippine Republic - “The New Republic” After the establishment of the Philippine Independence in 1946, the problems of land tenure remained. These became worst in certain areas. Thus the Congress of the Philippines revised the tenancy law. President Manuel A. Roxas (1946-1948) enacted the following laws: Republic Act No. 34 -- Established the 70-30 sharing arrangements and regulating share-tenancy contracts.  Page | 9 Republic Act No. 55 -- Provided for a more effective safeguard against arbitrary ejectment of tenants. Elpidio R. Quirino (1948-1953) enacted the following law: Executive Order No. 355 issued on October 23, 1950 -- Replaced the National Land Settlement Administration with Land Settlement Development Corporation (LASEDECO) which takes over the responsibilities of the Agricultural Machinery Equipment Corporation and the Rice and Corn Production Administration. Ramon Magsaysay (1953-1957) enacted the following laws: Republic Act No. 1160 of 1954 -- Abolished the LASEDECO and established the National Resettlement and Rehabilitation Administration (NARRA) to resettle dissidents and landless farmers. It was particularly aimed at rebel returnees providing home lots and farmlands in Palawan and Mindanao. Republic Act No. 1199 (Agricultural Tenancy Act of 1954) -- governed the relationship between landowners and tenant farmers by organizing share-tenancy and leasehold system. The law provided the security of tenure of tenants. It also created the Court of Agrarian Relations. Republic Act No. 1400 (Land Reform Act of 1955) -- Created the Land Tenure Administration (LTA) which was responsible for the acquisition and distribution of large tenanted rice and corn lands over 200 hectares for individuals and 600 hectares for corporations. Republic Act No. 821 (Creation of Agricultural Credit Cooperative Financing Administration) -- Provided small farmers and share tenants loans with low interest rates of six to eight percent. President Carlos P. Garcia (1957-1961) Continued the program of President Ramon Magsaysay. No new legislation passed. President Diosdado P. Macapagal (1961-1965) enacted the following law: Republic Act No. 3844 of August 8, 1963 (Agricultural Land Reform Code) -- Abolished share tenancy, institutionalized leasehold, set retention limit at 75 hectares, invested rights of preemption and redemption for tenant farmers, provided for an administrative machinery for implementation, institutionalized a judicial system of agrarian cases, incorporated extension, marketing and supervised credit system of services of farmer beneficiaries. The RA was hailed as one that would emancipate Filipino farmers from the bondage of tenancy. President Ferdinand E. Marcos (1965-1986) Proclamation No. 1081 on September 21, 1972 ushered the Period of the New Society. Five days after the proclamation of Martial Law, the entire country was proclaimed a land reform area and simultaneously the Agrarian Reform Program was decreed. President Marcos enacted the following laws: Republic Act No. 6389, (Code of Agrarian Reform) and RA No. 6390 of 1971 -- Created the Department of Agrarian Reform and the Agrarian Reform Special Account Fund. It strengthen the position of farmers and expanded the scope of agrarian reform.  Page | 10 Presidential Decree No. 2, September 26, 1972 -- Declared the country under land reform program. It enjoined all agencies and offices of the government to extend full cooperation and assistance to the DAR. It also activated the Agrarian Reform Coordinating Council. Presidential Decree No. 27, October 21, 1972 -- Restricted land reform scope to tenanted rice and corn lands and set the retention limit at 7 hectares. President Corazon C. Aquino (1986-1992) The Constitution ratified by the Filipino people during the administration of President Corazon C. Aquino provides under Section 21 under Article II that “The State shall promote comprehensive rural development and agrarian reform.” On June 10, 1988, President Corazon C. Aquino signed into law Republic Act No. 6657 or otherwise known as the Comprehensive Agrarian Reform Law (CARL). The law became effective on June 15, 1988. Subsequently, four Presidential issuances were released in July 1987 after 48 nationwide consultations before the actual law was enacted. President Corazon C. Aquino enacted the following laws: Executive Order No. 228, July 16, 1987 – Declared full ownership to qualified farmer-beneficiaries covered by PD 27. It also determined the value remaining unvalued rice and corn lands subject of PD 27 and provided for the manner of payment by the FBs and mode of compensation to landowners. Executive Order No. 229, July 22, 1987 – Provided mechanism for the implementation of the Comprehensive Agrarian Reform Program (CARP). Proclamation No. 131, July 22, 1987 – Instituted the CARP as a major program of the government. It provided for a special fund known as the Agrarian Reform Fund (ARF), with an initial amount of Php50 billion to cover the estimated cost of the program from 1987-1992. Executive Order No. 129-A, July 26, 1987 – streamlined and expanded the power and operations of the DAR. Republic Act No. 6657, June 10, 1988 (Comprehensive Agrarian Reform Law) – An act which became effective June 15, 1988 and instituted a comprehensive agrarian reform program to promote social justice and industrialization providing the mechanism for its implementation and for other purposes. This law is still the one being implemented at present. Executive Order No. 405, June 14, 1990 – Vested in the Land Bank of the Philippines the responsibility to determine land valuation and compensation for all lands covered by CARP. Executive Order No. 407, June 14, 1990 – Accelerated the acquisition and distribution of agricultural lands, pasture lands, fishponds, agro-forestry lands and other lands of the public domain suitable for agriculture. President Fidel V. Ramos (1992-1998) When President Fidel V. Ramos formally took over in 1992, his administration came face to face with publics who have lost confidence in the agrarian reform program. His administration committed to the vision “Fairer, faster and more meaningful implementation of the Agrarian Reform Program". President Fidel V. Ramos enacted the following laws: Republic Act No. 7881, 1995 – Amended certain provisions of RA 6657 and exempted fishponds and prawns from the coverage of CARP. Republic Act No. 7905, 1995 – Strengthened the implementation of the CARP.  Page | 11 Executive Order No. 363, 1997 – Limits the type of lands that may be converted by setting conditions under which limits the type of lands that may be converted by setting conditions under which specific categories of agricultural land are either absolutely non-negotiable for conversion or highly restricted for conversion. Republic Act No. 8435, 1997 (Agriculture and Fisheries Modernization Act AFMA) – Plugged the legal loopholes in land use conversion. Republic Act 8532, 1998 (Agrarian Reform Fund Bill) – Provided an additional Php50 billion for CARP and extended its implementation for another 10 years. President Joseph E. Estrada (1998-2000) “ERAP PARA SA MAHIRAP’. This was the battle cry that endeared President Joseph Estrada and made him very popular during the 1998 presidential election. President Joseph E. Estrada initiated the enactment of the following law: Executive Order No. 151, September 1999 (Farmer’s Trust Fund) – Allowed the voluntary consolidation of small farm operation into medium and large scale integrated enterprise that can access long-term capital. During his administration, President Estrada launched the Magkabalikat Para sa Kaunlarang Agraryo or MAGKASAKA. The DAR forged into joint ventures with private investors into agrarian sector to make FBs competitive. However, the Estrada Administration was short lived. The masses who put him into office demanded for his ouster. President Gloria Macapacal-Arroyo (2000-2010) The agrarian reform program under the Arroyo administration is anchored on the vision “To make the countryside economically viable for the Filipino family by building partnership and promoting social equity and new economic opportunities towards lasting peace and sustainable rural development.” Land Tenure Improvement - DAR will remain vigorous in implementing land acquisition and distribution component of CARP. The DAR will improve land tenure system through land distribution and leasehold. Provision of Support Services - CARP not only involves the distribution of lands but also included package of support services which includes: credit assistance, extension services, irrigation facilities, roads and bridges, marketing facilities and training and technical support programs. Infrastructure Projects - DAR will transform the agrarian reform communities (ARCs), an area focused and integrated delivery of support services, into rural economic zones that will help in the creation of job opportunities in the countryside. KALAHI ARZone - The KALAHI Agrarian Reform (KAR) Zones were also launched. These zones consists of one or more municipalities with concentration of ARC population to achieve greater agro-productivity. Agrarian Justice - To help clear the backlog of agrarian cases, DAR will hire more paralegal officers to support undermanned adjudicatory boards and introduce quota system to compel adjudicators to work faster on agrarian reform cases. DAR will respect the rights of both farmers and landowners.  Page | 12 President Benigno Aquino III (2010-2016) President Benigno Aquino III vowed during his 2012 State of the Nation Address that he would complete before the end of his term the Comprehensive Agrarian Reform Program (CARP), the centerpiece program of the administration of his mother, President Corazon Aquino. The younger Aquino distributed their family-owned Hacienda Luisita in Tarlac. Apart from the said farm lots, he also promised to complete the distribution of privately-owned lands of productive agricultural estates in the country that have escaped the coverage of the program. Under his administration, the Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS) project was created to contribute to the overall goal of rural poverty reduction especially in agrarian reform areas. Agrarian Production Credit Program (APCP) provided credit support for crop production to newly organized and existing agrarian reform beneficiaries’ organizations (ARBOs) and farmers’ organizations not qualified to avail themselves of loans under the regular credit windows of banks. The legal case monitoring system (LCMS), a web-based legal system for recording and monitoring various kinds of agrarian cases at the provincial, regional and central offices of the DAR to ensure faster resolution and close monitoring of agrarian-related cases, was also launched. Aside from these initiatives, Aquino also 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 in cooperation with other government agencies. President Rodrigo Roa Duterte (2016 – present) Under his leadership, the President wants to pursue an “aggressive” land reform program that would help alleviate the lives of poor Filipino farmers by prioritizing the provision of support services alongside land distribution. The President directed the DAR to launch the 2nd phase of agrarian reform where landless farmers would be awarded with undistributed lands under the Comprehensive Agrarian Reform Program (CARP). Duterte plans to place almost all public lands, including military reserves, under agrarian reform. The President also placed 400 hectares of agricultural lands in Boracay under CARP. Under his administration, the DAR created an anti-corruption task force to investigate and handle reports on alleged anomalous activities by officials and employees of the department. The Department also pursues an “Oplan Zero Backlog” in the resolution of cases in relation to agrarian justice delivery of the agrarian reform program to fast-track the implementation of CARP. Source: Department of Agrarian Reform retrieved from http://www.dar.gov.ph/about-us/agrarian-reform-history/October 2019  Page | 13 Eighth Congress Republic Act No. 6657 June 10, 1988 AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN REFORM PROGRAM TO PROMOTE SOCIAL JUSTICE AND INDUSTRIALIZATION, PROVIDING THE MECHANISM FOR ITS IMPLEMENTATION, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: CHAPTER I Preliminary Chapter Section 1. Title. — This Act shall be known as the Comprehensive Agrarian Reform Law of 1988. Section 2. Declaration of Principles and Policies. — It is the policy of the State to pursue a Comprehensive Agrarian Reform Program (CARP). The welfare of the landless farmers and farmworkers will receive the highest consideration to promote social justice and to move the nation toward sound rural development and industrialization, and the establishment of owner cultivatorship of economic-size farms as the basis of Philippine agriculture. To this end, a more equitable distribution and ownership of land, with due regard to the rights of landowners to just compensation and to the ecological needs of the nation, shall be undertaken to provide farmers and farmworkers with the opportunity to enhance their dignity and improve the quality of their lives through greater productivity of agricultural lands. The agrarian reform program is founded on the right of farmers and regular farmworkers, who are landless, to own directly or collectively the lands they till or, in the case of other farm workers, to receive a just share of the fruits thereof. To this end, the State shall encourage and undertake the just distribution of all agricultural lands, subject to the priorities and retention limits set forth in this Act, having taken into account ecological, developmental, and equity considerations, and subject to the payment of just compensation. The State shall respect the right of small landowners, and shall provide incentives for voluntary land-sharing. The State shall recognize the right of farmers, farmworkers and landowners, as well as cooperatives and other independent farmers' organizations, to participate in the planning, organization, and management of the program, and shall provide support to agriculture through appropriate technology and research, and adequate financial production, marketing and other support services. The State shall apply the principles of agrarian reform, or stewardship, whenever applicable, in accordance with law, in the disposition or utilization of other natural resources, including lands of the public domain, under lease or concession, suitable to agriculture, subject to prior rights, homestead rights of small settlers and the rights of indigenous communities to their ancestral lands. The State may resettle landless farmers and farmworkers in its own agricultural estates, which shall be distributed to them in the manner provided by law. By means of appropriate incentives, the State shall encourage the formation and maintenance of economic-size family farms to be constituted by individual beneficiaries and small landowners. The State shall protect the rights of subsistence fishermen, especially of local communities, to the preferential use of communal marine and fishing resources, both inland and offshore.t shall provide support to such fishermen through appropriate technology and research, adequate financial, production and marketing assistance and other services. The State shall also protect, develop and conserve such resources. The protection shall extend to offshore fishing grounds of subsistence fishermen against foreign intrusion. Fishworkers shall receive a just share from their labor in the utilization of marine and fishing resources. The State shall be guided by the principles that land has a social function and land ownership has a social responsibility. Owners of agricultural lands have the obligation to cultivate directly or through labor administration the lands they own and thereby make the land productive. The State shall provide incentives to landowners to invest the proceeds of the agrarian reform program to promote industrialization, employment and privatization of public sector enterprises. Financial instruments used as payment for lands shall contain features that shall enhance negotiability and acceptability in the marketplace.  Page | 14 The State may lease undeveloped lands of the public domain to qualified entities for the development of capital-intensive farms, and traditional and pioneering crops especially those for exports subject to the prior rights of the beneficiaries under this Act. Section 3. Definitions. — For the purpose of this Act, unless the context indicates otherwise: (a) Agrarian Reform means redistribution of lands, regardless of crops or fruits produced, to farmers and regular farmworkers who are landless, irrespective of tenurial arrangement, to include the totality of factors and support services designed to lift the economic status of the beneficiaries and all other arrangements alternative to the physical redistribution of lands, such as production or profit-sharing, labor administration, and the distribution of shares of stocks, which will allow beneficiaries to receive a just share of the fruits of the lands they work. (b) Agriculture, Agricultural Enterprise or Agricultural Activity means the cultivation of the soil, planting of crops, growing of fruit trees, raising of livestock, poultry or fish, including the harvesting of such farm products, and other farm activities and practices performed by a farmer in conjunction with such farming operations done by person whether natural or juridical. (c) Agricultural Land refers to land devoted to agricultural activity as defined in this Act and not classified as mineral, forest, residential, commercial or industrial land. (d) Agrarian Dispute refers to any controversy relating to tenurial arrangements, whether leasehold, tenancy, stewardship or otherwise, over lands devoted to agriculture, including disputes concerning farmworkers' associations or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of such tenurial arrangements. It includes any controversy relating to compensation of lands acquired under this Act and other terms and conditions of transfer of ownership from landowners to farmworkers, tenants and other agrarian reform beneficiaries, whether the disputants stand in the proximate relation of farm operator and beneficiary, landowner and tenant, or lessor and lessee. (e) Idle or Abandoned Land refers to any agricultural land not cultivated, tilled or developed to produce any crop nor devoted to any specific economic purpose continuously for a period of three (3) years immediately prior to the receipt of notice of acquisition by the government as provided under this Act, but does not include land that has become permanently or regularly devoted to non-agricultural purposes.t does not include land which has become unproductive by reason of force majeure or any other fortuitous event, provided that prior to such event, such land was previously used for agricultural or other economic purpose. (f) Farmer refers to a natural person whose primary livelihood is cultivation of land or the production of agricultural crops, either by himself, or primarily with the assistance of his immediate farm household, whether the land is owned by him, or by another person under a leasehold or share tenancy agreement or arrangement with the owner thereof. (g) Farmworker is a natural person who renders service for value as an employee or laborer in an agricultural enterprise or farm regardless of whether his compensation is paid on a daily, weekly, monthly or "pakyaw" basis. The term includes an individual whose work has ceased as a consequence of, or in connection with, a pending agrarian dispute and who has not obtained a substantially equivalent and regular farm employment. (h) Regular Farmworker is a natural person who is employed on a permanent basis by an agricultural enterprise or farm. (i) Seasonal Farmworker is a natural person who is employed on a recurrent, periodic or intermittent basis by an agricultural enterprise or farm, whether as a permanent or a non-permanent laborer, such as "dumaan", "sacada", and the like. (j) Other Farmworker is a farmworker who does not fall under paragraphs (g), (h) and (i). (k) Cooperatives shall refer to organizations composed primarily of small agricultural producers, farmers, farmworkers, or other agrarian reform beneficiaries who voluntarily organize themselves for the purpose of pooling land, human, technological, financial or other economic resources, and operated on the principle of one member, one vote. A juridical person may be a member of a cooperative, with the same rights and duties as a natural person. CHAPTER II Coverage Section 4. Scope. — The Comprehensive Agrarian Reform Law of 1989 shall cover, regardless of tenurial arrangement and commodity produced, all public and private agricultural lands, as provided in Proclamation No. 131 and Executive Order No. 229, including other lands of the public domain suitable for agriculture. More specifically the following lands are covered by the Comprehensive Agrarian Reform Program: (a) All alienable and disposable lands of the public domain devoted to or suitable for agriculture. No reclassification of forest or mineral lands to agricultural lands shall be undertaken after the approval of this Act until Congress, taking into account ecological, developmental and equity considerations, shall have determined by law, the specific limits of the public domain. (b) All lands of the public domain in excess of the specific limits as determined by Congress in the preceding paragraph; (c) All other lands owned by the Government devoted to or suitable for agriculture; and (d) All private lands devoted to or suitable for agriculture regardless of the agricultural products raised or that can be raised thereon.  Page | 15 Section 5. Schedule of Implementation. — The distribution of all lands covered by this Act shall be implemented immediately and completed within ten (10) years from the effectivity thereof. Section 6. Retention Limits. — Except as otherwise provided in this Act, no person may own or retain, directly or indirectly, any public or private agricultural land, the size of which shall vary according to factors governing a viable family-size farm, such as commodity produced, terrain, infrastructure, and soil fertility as determined by the Presidential Agrarian Reform Council (PARC) created hereunder, but in no case shall retention by the landowner exceed five (5) hectares. Three (3) hectares may be awarded to each child of the landowner, subject to the following qualifications: (1) that he is at least fifteen (15) years of age; and (2) that he is actually tilling the land or directly managing the farm: provided, that landowners whose lands have been covered by Presidential Decree No. 27 shall be allowed to keep the areas originally retained by them thereunder: provided, further, that original homestead grantees or their direct compulsory heirs who still own the original homestead at the time of the approval of this Act shall retain the same areas as long as they continue to cultivate said homestead. The right to choose the area to be retained, which shall be compact or contiguous, shall pertain to the landowner: provided, however, that in case the area selected for retention by the landowner is tenanted, the tenant shall have the option to choose whether to remain therein or be a beneficiary in the same or another agricultural land with similar or comparable features.n case the tenant chooses to remain in the retained area, he shall be considered a leaseholder and shall lose his right to be a beneficiary under this Act.n case the tenant chooses to be a beneficiary in another agricultural land, he loses his right as a leaseholder to the land retained by the landowner. The tenant must exercise this option within a period of one (1) year from the time the landowner manifests his choice of the area for retention. In all cases, the security of tenure of the farmers or farmworkers on the land prior to the approval of this Act shall be respected. Upon the effectivity of this Act, any sale, disposition, lease, management, contract or transfer of possession of private lands executed by the original landowner in violation of the Act shall be null and void: provided, however, that those executed prior to this Act shall be valid only when registered with the Register of Deeds within a period of three (3) months after the effectivity of this Act. Thereafter, all Registers of Deeds shall inform the Department of Agrarian Reform (DAR) within thirty (30) days of any transaction involving agricultural lands in excess of five (5) hectares. Section 7. Priorities. — The Department of Agrarian Reform (DAR) in coordination with the Presidential Agrarian Reform Council (PARC) shall plan and program the acquisition and distribution of all agricultural lands through a period of ten (10) years from the effectivity of this Act. Lands shall be acquired and distributed as follows: Phase One: Rice and corn lands under Presidential Decree No. 27; all idle or abandoned lands; all private lands voluntarily offered by the owners for agrarian reform; all lands foreclosed by the government financial institutions; all lands acquired by the Presidential Commission on Good Government (PCGG); and all other lands owned by the government devoted to or suitable for agriculture, which shall be acquired and distributed immediately upon the effectivity of this Act, with the implementation to be completed within a period of not more than four (4) years; Phase Two: All alienable and disposable public agricultural lands; all arable public agricultural lands under agro-forest, pasture and agricultural leases already cultivated and planted to crops in accordance with Section 6, Article XIII of the Constitution; all public agricultural lands which are to be opened for new development and resettlement; and all private agricultural lands in excess of fifty (50) hectares, insofar as the excess hectarage is concerned, to implement principally the rights of farmers and regular farmworkers, who are the landless, to own directly or collectively the lands they till, which shall be distributed immediately upon the effectivity of this Act, with the implementation to be completed within a period of not more than four (4) years. Phase Three: All other private agricultural lands commencing with large landholdings and proceeding to medium and small landholdings under the following schedule: (a) Landholdings above twenty-four (24) hectares up to fifty (50) hectares, to begin on the fourth (4th) year from the effectivity of this Act and to be completed within three (3) years; and (b) Landholdings from the retention limit up to twenty-four (24) hectares, to begin on the sixth (6th) year from the effectivity of this Act and to be completed within four (4) years; to implement principally the right of farmers and regular farmworkers who are landless, to own directly or collectively the lands they till. The schedule of acquisition and redistribution of all agricultural lands covered by this program shall be made in accordance with the above order of priority, which shall be provided in the implementing rules to be prepared by the Presidential Agrarian Reform Council (PARC), taking into consideration the following; the need to distribute land to the tillers at the earliest practicable time; the need to enhance agricultural productivity; and the availability of funds and resources to implement and support the program. In any case, the PARC, upon recommendation by the Provincial Agrarian Reform Coordinating Committee (PARCCOM), may declare certain provinces or region as priority land reform areas, in which the acquisition and distribution of private agricultural lands therein may be implemented ahead of the above schedules. In effecting the transfer within these guidelines, priority must be given to lands that are tenanted. The PARC shall establish guidelines to implement the above priorities and distribution scheme, including the determination of who are qualified beneficiaries: provided, that an owner-tiller may be a beneficiary of the land he does not own but is actually cultivating to the extent of the difference between the area of the land he owns and the award ceiling of three (3) hectares. Section 8. Multinational Corporations. — All lands of the public domain leased, held or possessed by multinational corporations or associations, and other lands owned by the government or by government-owned or controlled corporations, associations, institutions, or entities, devoted to existing and operational agri-business or agro-industrial enterprises, operated by multinational corporations and associations, shall be programmed for acquisition and distribution immediately upon the effectivity of this Act, with the implementation to be completed within three (3) years. Lands covered by the paragraph immediately preceding, under lease, management, grower or service contracts, and the like, shall be disposed of as follows: (a) Lease, management, grower or service contracts covering such lands covering an aggregate area in excess of 1,000 hectares, leased or held by foreign individuals in excess of 500 hectares are deemed amended to conform with the limits set forth in Section 3 of Article XII of the Constitution. (b) Contracts covering areas not in excess of 1,000 hectares in the case of such corporations and associations, and 500 hectares, in the case of such individuals, shall be allowed to continue under their original terms and conditions but not beyond August 29, 1992, or their valid termination, whichever comes sooner, after which, such agreements shall continue only when confirmed by the appropriate government agency. Such contracts shall likewise continue even after the lands has been transferred to beneficiaries or awardees thereof, which transfer shall be immediately commenced and implemented and completed within the period of three (3) years mentioned in the first paragraph hereof.  Page | 16 (c) In no case will such leases and other agreements now being implemented extend beyond August 29, 1992, when all lands subject hereof shall have been distributed completely to qualified beneficiaries or awardees. Such agreements can continue thereafter only under a new contract between the government or qualified beneficiaries or awardees, on the one hand, and said enterprises, on the other. Lands leased, held or possessed by multinational corporations, owned by private individuals and private non-governmental corporations, associations, institutions and entities, citizens of the Philippines, shall be subject to immediate compulsory acquisition and distribution upon the expiration of the applicable lease, management, grower or service contract in effect as of August 29, 1987, or otherwise, upon its valid termination, whichever comes sooner, but not later than after ten (10) years following the effectivity of the Act. However during the said period of effectivity, the government shall take steps to acquire these lands for immediate distribution thereafter. In general, lands shall be distributed directly to the individual worker-beneficiaries.n case it is not economically feasible and sound to divide the land, then they shall form a workers' cooperative or association which will deal with the corporation or business association or any other proper party for the purpose of entering into a lease or growers agreement and for all other legitimate purposes. Until a new agreement is entered into by and between the workers' cooperative or association and the corporation or business association or any other proper party, any agreement existing at the time this Act takes effect between the former and the previous landowner shall be respected by both the workers' cooperative or association and the corporation, business, association or such other proper party.n no case shall the implementation or application of this Act justify or result in the reduction of status or diminution of any benefits received or enjoyed by the worker-beneficiaries, or in which they may have a vested right, at the time this Act becomes effective. The provisions of Section 32 of this Act, with regard to production and income-sharing shall apply to farms operated by multinational corporations. During the transition period, the new owners shall be assisted in their efforts to learn modern technology in production. Enterprises which show a willingness and commitment and good-faith efforts to impart voluntarily such advanced technology will be given preferential treatment where feasible. In no case shall a foreign corporation, association, entity or individual enjoy any rights or privileges better than those enjoyed by a domestic corporation, association, entity or individual. Section 9. Ancestral Lands. — For purposes of this Act, ancestral lands of each indigenous cultural community shall include, but not be limited to, lands in the actual, continuous and open possession and occupation of the community and its members: provided, that the Torrens Systems shall be respected. The right of these communities to their ancestral lands shall be protected to ensure their economic, social and cultural well-being.n line with the principles of self-determination and autonomy, the systems of land ownership, land use, and the modes of settling land disputes of all these communities must be recognized and respected. Any provision of law to the contrary notwithstanding, the PARC may suspend the implementation of this Act with respect to ancestral lands for the purpose of identifying and delineating such lands: provided, that in the autonomous regions, the respective legislatures may enact their own laws on ancestral domain subject to the provisions of the Constitution and the principles enunciated in this Act and other national laws. Section 10. Exemptions and Exclusions. — Lands actually, directly and exclusively used and found to be necessary for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, watersheds, and mangroves, national defense, school sites and campuses including experimental farm stations operated by public or private schools for educational purposes, seeds and seedlings research and pilot production centers, church sites and convents appurtenant thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds and cemeteries, penal colonies and penal farms actually worked by the inmates, government and private research and quarantine centers and all lands with eighteen percent (18%) slope and over, except those already developed shall be exempt from the coverage of the Act. Section 11. Commercial Farming. — Commercial farms, which are private agricultural lands devoted to commercial livestock, poultry and swine raising, and aquaculture including saltbeds, fishponds and prawn ponds, fruit farms, orchards, vegetable and cut-flower farms, and cacao, coffee and rubber plantations, shall be subject to immediate compulsory acquisition and distribution after (10) years from the effectivity of the Act.n the case of new farms, the ten-year period shall begin from the first year of commercial production and operation, as determined by the DAR. During the ten-year period, the government shall initiate the steps necessary to acquire these lands, upon payment of just compensation for the land and the improvements thereon, preferably in favor of organized cooperatives or associations, which shall hereafter manage the said lands for the worker-beneficiaries. If the DAR determines that the purposes for which this deferment is granted no longer exist, such areas shall automatically be subject to redistribution. The provisions of Section 32 of the Act, with regard to production-and income-sharing, shall apply to commercial farms. CHAPTER III Improvement of Tenurial and Labor Relations Section 12. Determination of Lease Rentals. — In order to protect and improve the tenurial and economic status of the farmers in tenanted lands under the retention limit and lands not yet acquired under this Act, the DAR is mandated to determine and fix immediately the lease rentals thereof in accordance with Section 34 of Republic Act No. 3844, as amended: provided, that the DAR shall immediately and periodically review and adjust the rental structure for different crops, including rice and corn, or different regions in order to improve progressively the conditions of the farmer, tenant or lessee. Section 13. Production-Sharing Plan. — Any enterprise adopting the scheme provided for in Section 32 or operating under a production venture, lease, management contract or other similar arrangement and any farm covered by Sections 8 and 11 hereof is hereby mandated to execute within ninety (90) days from the effectivity of this Act, a production-sharing plan, under guidelines prescribed by the appropriate government agency. Nothing herein shall be construed to sanction the diminution of any benefits such as salaries, bonuses, leaves and working conditions granted to the employee-beneficiaries under existing laws, agreements, and voluntary practice by the enterprise, nor shall the enterprise and its employee-beneficiaries be prevented from entering into any agreement with terms more favorable to the latter. CHAPTER IV Registration  Page | 17 Section 14. Registration of Landowners. — Within one hundred eighty (180) days from the effectivity of this Act, all persons, natural or juridical, including government entities, that own or claim to own agricultural lands, whether in their names or in the name of others, except those who have already registered pursuant to Executive Order No. 229, who shall be entitled to such incentives as may be provided for the PARC, shall file a sworn statement in the proper assessor's office in the form to be prescribed by the DAR, stating the following information: (a) the description and area of the property; (b) the average gross income from the property for at least three (3) years; (c) the names of all tenants and farmworkers therein; (d) the crops planted in the property and the area covered by each crop as of June 1, 1987; (e) the terms of mortgages, lease, and management contracts subsisting as of June 1, 1987, and (f) the latest declared market value of the land as determined by the city or provincial assessor. Section 15. Registration of Beneficiaries. — The DAR in coordination with the Barangay Agrarian Reform Committee (BARC) as organized in this Act, shall register all agricultural lessees, tenants and farmworkers who are qualified to be beneficiaries of the CARP. These potential beneficiaries with the assistance of the BARC and the DAR shall provide the following data: (a) names and members of their immediate farm household; (b) owners or administrators of the lands they work on and the length of tenurial relationship; (c) location and area of the land they work; (d) crops planted; and (e) their share in the harvest or amount of rental paid or wages received. A copy of the registry or list of all potential CARP beneficiaries in the barangay shall be posted in the barangay hall, school or other public buildings in the barangay where it shall be open to inspection by the public at all reasonable hours. CHAPTER V Land Acquisition Section 16. Procedure for Acquisition of Private Lands. — For purposes of acquisition of private lands, the following procedures shall be followed: (a) After having identified the land, the landowners and the beneficiaries, the DAR shall send its notice to acquire the land to the owners thereof, by personal delivery or registered mail, and post the same in a conspicuous place in the municipal building and barangay hall of the place where the property is located. Said notice shall contain the offer of the DAR to pay a corresponding value in accordance with the valuation set forth in Sections 17, 18, and other pertinent provisions hereof. (b) Within thirty (30) days from the date of receipt of written notice by personal delivery or registered mail, the landowner, his administrator or representative shall inform the DAR of his acceptance or rejection of the offer. (c) If the landowner accepts the offer of the DAR, the Land Bank of the Philippines (LBP) shall pay the landowner the purchase price of the land within thirty (30) days after he executes and delivers a deed of transfer in favor of the government and surrenders the Certificate of Title and other muniments of title. (d) In case of rejection or failure to reply, the DAR shall conduct summary administrative proceedings to determine the compensation for the land requiring the landowner, the LBP and other interested parties to submit evidence as to the just compensation for the land, within fifteen (15) days from the receipt of the notice. After the expiration of the above period, the matter is deemed submitted for decision. The DAR shall decide the case within thirty (30) days after it is submitted for decision. (e) Upon receipt by the landowner of the corresponding payment or, in case of rejection or no response from the landowner, upon the deposit with an accessible bank designated by the DAR of the compensation in cash or in LBP bonds in accordance with this Act, the DAR shall take immediate possession of the land and shall request the proper Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name of the Republic of the Philippines. The DAR shall thereafter proceed with the redistribution of the land to the qualified beneficiaries. (f) Any party who disagrees with the decision may bring the matter to the court of proper jurisdiction for final determination of just compensation. CHAPTER VI Compensation Section 17. Determination of Just Compensation. — In determining just compensation, the cost of acquisition of the land, the current value of the like properties, its nature, actual use and income, the sworn valuation by the owner, the tax declarations, and the assessment made by government assessors shall be considered. The social and economic benefits contributed by the  Page | 18 farmers and the farmworkers and by the Government to the property as well as the non-payment of taxes or loans secured from any government financing institution on the said land shall be considered as additional factors to determine its valuation. Section 18. Valuation and Mode of Compensation. — The LBP shall compensate the landowner in such amounts as may be agreed upon by the landowner and the DAR and the LBP, in accordance with the criteria provided for in Sections 16 and 17, and other pertinent provisions hereof, or as may be finally determined by the court, as the just compensation for the land. The compensation shall be paid on one of the following modes, at the option of the landowner: (1) Cash payment, under the following terms and conditions; (a) For lands above fifty (50) hectares, insofar as the excess — Twenty-five percent (25%) cash, the balance to be paid in hectarage is concerned. government financial instruments negotiable at any time. (b) For lands above twenty-four (24) hectares and up to fifty — Thirty percent (30%) cash, the balance to be paid in (50) hectares. government financial instruments negotiable at any time. (c) For lands twenty-four (24) hectares and below. — Thirty-five percent (35%) cash, the balance to be paid in government financial instruments negotiable at any time. (2) Shares of stock in government-owned or controlled corporations, LBP preferred shares, physical assets or other qualified investments in accordance with guidelines set by the PARC; (3) Tax credits which can be used against any tax liability; (4) LBP bonds, which shall have the following features: (a) Market interest rates aligned with 91-day treasury bill rates. Ten percent (10%) of the face value of the bonds shall mature every year from the date of issuance until the tenth (10th) year: provided, that should the landowner choose to forego the cash portion, whether in full or in part, he shall be paid correspondingly in LBP bonds; (b) Transferability and negotiability. Such LBP bonds may be used by the landowner, his successors in interest or his assigns, up to the amount of their face value, for any of the following: (i) Acquisition of land or other real properties of the government, including assets under the Asset Privatization Program and other assets foreclosed by government financial institutions in the same province or region where the lands for which the bonds were paid are situated; (ii) Acquisition of shares of stock of government-owned or -controlled corporations or shares of stocks owned by the government in private corporations; (iii) Substitution for surety or bail bonds for the provisional release of accused persons, or performance bonds; (iv) Security for loans with any government financial institution, provided the proceeds of the loans shall be invested in an economic enterprise, preferably in a small-and medium-scale industry, in the same province or region as the land for which the bonds are paid; (v) Payment for various taxes and fees to government; provided, that the use of these bonds for these purposes will be limited to a certain percentage of the outstanding balance of the financial instruments: provided, further, that the PARC shall determine the percentage mentioned above; (vi) Payment for tuition fees of the immediate family of the original bondholder in government universities, colleges, trade schools, and other institutions; (vii) Payment for fees of the immediate family of the original bondholder in government hospitals; and (viii) Such other uses as the PARC may from time to time allow. In case of extraordinary inflation, the PARC shall take appropriate measures to protect the economy. Section 19. Incentives for Voluntary Offers for Sales. — Landowners, other than banks and other financial institutions, who voluntarily offer their lands for sale shall be entitled to an additional five percent (5%) cash payment.  Page | 19 Section 20. Voluntary Land Transfer. — Landowners of agricultural lands subject to acquisition under this Act may enter into a voluntary arrangement for direct transfer of their lands to qualified beneficiaries subject to the following guidelines: (a) All notices for voluntary land transfer must be submitted to the DAR within the first year of the implementation of the CARP. Negotiations between the landowners and qualified beneficiaries covering any voluntary land transfer which remain unresolved after one (1) year shall not be recognized and such land shall instead be acquired by the government and transferred pursuant to this Act. (b) The terms and conditions of such transfer shall not be less favorable to the transferee than those of the government's standing offer to purchase from the landowner and to resell to the beneficiaries, if such offers have been made and are fully known to both parties. (c) The voluntary agreement shall include sanctions for non-compliance by either party and shall be duly recorded and its implementation monitored by the DAR. Section 21. Payment of Compensation by Beneficiaries Under Voluntary Land Transfer. — Direct payments in cash or in kind may be by the farmer-beneficiary to the landowner under terms to be mutually agreed upon by both parties, which shall be binding upon them, upon registration with the approval by the DAR. Said approval shall be considered given, unless notice of disapproval is received by the farmer-beneficiary within thirty (30) days from the date of registration. In the event they cannot agree on the price of land, the procedure for compulsory acquisition as provided in Section 16 shall apply. The LBP shall extend financing to the beneficiaries for purposes of acquiring the land. CHAPTER VII Land Redistribution Section 22. Qualified Beneficiaries. — The lands covered by the CARP shall be distributed as much as possible to landless residents of the same barangay, or in the absence thereof, landless residents of the same municipality in the following order of priority: (a) agricultural lessees and share tenants; (b) regular farmworkers; (c) seasonal farmworkers; (d) other farmworkers; (e) actual tillers or occupants of public lands; (f) collectives or cooperatives of the above beneficiaries; and (g) others directly working on the land. Provided, however, that the children of landowners who are qualified under Section 6 of this Act shall be given preference in the distribution of the land of their parents: and provided, further, that actual tenant-tillers in the landholdings shall not be ejected or removed therefrom. Beneficiaries under Presidential Decree No. 27 who have culpably sold, disposed of, or abandoned their land are disqualified to become beneficiaries under this Program. A basic qualification of a beneficiary shall be his willingness, aptitude, and ability to cultivate and make the land as productive as possible. The DAR shall adopt a system of monitoring the record or performance of each beneficiary, so that any beneficiary guilty of negligence or misuse of the land or any support extended to him shall forfeit his right to continue as such beneficiary. The DAR shall submit periodic reports on the performance of the beneficiaries to the PARC. If, due to the landowner's retention rights or to the number of tenants, lessees, or workers on the land, there is not enough land to accommodate any or some of them, they may be granted ownership of other lands available for distribution under this Act, at the option of the beneficiaries. Farmers already in place and those not accommodated in the distribution of privately-owned lands will be given preferential rights in the distribution of lands from the public domain. Section 23. Distribution Limit. — No qualified beneficiary may own more than three (3) hectares of agricultural land. Section 24. Award to Beneficiaries. — The rights and responsibilities of the beneficiary shall commence from the time the DAR makes an award of the land to him, which award shall be completed within one hundred eighty (180) days from the time the DAR takes actual possession of the land. Ownership of the beneficiary shall be evidenced by a Certificate of Land Ownership Award, which shall contain the restrictions and conditions provided for in this Act, and shall be recorded in the Register of Deeds concerned and annotated on the Certificate of Title. Section 25. Award Ceilings for Beneficiaries. — Beneficiaries shall be awarded an area not exceeding three (3) hectares which may cover a contiguous tract of land or several parcels of land cumulated up to the prescribed award limits. For purposes of this Act, a landless beneficiary is one who owns less than three (3) hectares of agricultural land.  Page | 20 The beneficiaries may opt for collective ownership, such as co-ownership or farmers cooperative or some other form of collective organization: provided, that the total area that may be awarded shall not exceed the total number of co-owners or member of the cooperative or collective organization multiplied by the award limit above prescribed, except in meritorious cases as determined by the PARC. Title to the property shall be issued in the name of the co-owners or the cooperative or collective organization as the case may be. Section 26. Payment by Beneficiaries. — Lands awarded pursuant to this Act shall be paid for by the beneficiaries to the LBP in thirty (30) annual amortizations at six percent (6%) interest per annum. The payments for the first three (3) years after the award may be at reduced amounts as established by the PARC: provided, that the first five (5) annual payments may not be more than five percent (5%) of the value of the annual gross production as established by the DAR. Should the scheduled annual payments after the fifth year exceed ten percent (10%) of the annual gross production and the failure to produce accordingly is not due to the beneficiary's fault, the LBP may reduce the interest rate or reduce the principal obligations to make the repayment affordable. The LBP shall have a lien by way of mortgage on the land awarded to the beneficiary; and this mortgage may be foreclosed by the LBP for non-payment of an aggregate of three (3) annual amortizations. The LBP shall advise the DAR of such proceedings and the latter shall subsequently award the forfeited landholdings to other qualified beneficiaries. A beneficiary whose land, as provided herein, has been foreclosed shall thereafter be permanently disqualified from becoming a beneficiary under this Act. Section 27. Transferability of Awarded Lands. — Lands acquired by beneficiaries under this Act may not be sold, transferred or conveyed except through hereditary succession, or to the government, or the LBP, or to other qualified beneficiaries for a period of ten (10) years: provided, however, that the children or the spouse of the transferor shall have a right to repurchase the land from the government or LBP within a period of two (2) years. Due notice of the availability of the land shall be given by the LBP to the Barangay Agrarian Reform Committee (BARC) of the barangay where the land is situated. The Provincial Agrarian Reform Coordinating Committee (PARCCOM) as herein provided, shall, in turn, be given due notice thereof by the BARC. If the land has not yet been fully paid by the beneficiary, the rights to the land may be transferred or conveyed, with prior approval of the DAR, to any heir of the beneficiary or to any other beneficiary who, as a condition for such transfer or conveyance, shall cultivate the land himself. Failing compliance herewith, the land shall be transferred to the LBP which shall give due notice of the availability of the land in the manner specified in the immediately preceding paragraph. In the event of such transfer to the LBP, the latter shall compensate the beneficiary in one lump sum for the amounts the latter has already paid, together with the value of improvements he has made on the land. Section 28. Standing Crops at the Time of Acquisition. — The landowner shall retain his share of any standing crops unharvested at the time the DAR shall take possession of the land under Section 16 of the Act, and shall be given a reasonable time to harvest the same. CHAPTER VIII Corporate Farms Section 29. Farms Owned or Operated by Corporations or Other Business Associations. — In the case of farms owned or operated by corporations or other business associations, the following rules shall be observed by the PARC: In general, lands shall be distributed directly to the individual worker-beneficiaries. In case it is not economically feasible and sound to divide the land, then it shall be owned collectively by the workers' cooperative or association which will deal with the corporation or business association. Until a new agreement is entered into by and between the workers' cooperative or association and the corporation or business association, any agreement existing at the time this Act takes effect between the former and the previous landowner shall be respected by both the workers' cooperative or association and the corporation or business association. Section 30. Homelots and Farmlots for Members of Cooperatives. — The individual members of the cooperatives or corporations mentioned in the preceding section shall be provided with homelots and small farmlots for their family use, to be taken from the land owned by the cooperative or corporation. Section 31. Corporate Landowners. — Corporate landowners may voluntarily transfer ownership over their agricultural landholdings to the Republic of the Philippines pursuant to Section 20 hereof or to qualified beneficiaries, under such terms and conditions, consistent with this Act, as they may agree upon, subject to confirmation by the DAR. Upon certification by the DAR, corporations owning agricultural lands may give their qualified beneficiaries the right to purchase such proportion of the capital stock of the corporation that the agricultural land, actually devoted to agricultural activities, bears in relation to the company's total assets, under such terms and conditions as may be agreed upon by them.n no case shall the compensation received by the workers at the time the shares of stocks are distributed be reduced. The same principle shall be applied to associations, with respect to their equity or participation. Corporations or associations which voluntarily divest a proportion of their capital stock, equity or participation in favor of their workers or other qualified beneficiaries under this section shall be deemed to have complied with the provisions of the Act: provided, that the following conditions are complied with: a) In order to safeguard the right of beneficiaries who own shares of stocks to dividends and other financial benefits, the books of the corporation or association shall be subject to periodic audit by certified public accountants chosen by the beneficiaries; b) Irrespective of the value of their equity in the corporation or association, the beneficiaries shall be assured of at least one (1) representative in the board of directors, or in a management or executive committee, if one exists, of the corporation or association; and c) Any shares acquired by such workers and beneficiaries shall have the same rights and features as all other shares. d) Any transfer of shares of stocks by the original beneficiaries shall be void ab initio unless said transaction is in favor of a qualified and registered beneficiary within the same corporation. If within two (2) years from the approval of this Act, the land or stock transfer envisioned above is not made or realized or the plan for such stock distribution approved by the PARC within the same period, the agricultural land of the corporate owners or corporation shall be subject to the compulsory coverage of this Act. Section 32. Production-Sharing. — Pending final land transfer, individuals or entities owning, or operating under lease or management contract, agricultural lands are hereby mandated to execute a production-sharing plan with their farm workers or farmworkers' reorganization, if any, whereby three percent (3%) of the gross sales from the production of such lands are distributed within sixty  Page | 21 (60) days of the end of the fiscal year as compensation to regular and other farmworkers in such lands over and above the compensation they currently receive: provided, that these individuals or entities realize gross sales in excess of five million pesos per annum unless the DAR, upon proper application, determines a lower ceiling. In the event that the individual or entity realizes a profit, an additional ten percent (10%) of the net profit after tax shall be distributed to said regular and other farmworkers within ninety (90) days of the end of the fiscal year. To forestall any disruption in the normal operation of lands to be turned over to the farmworker-beneficiaries mentioned above, a transitory period, the length of which shall be determined by the DAR, shall be established. During this transitory period, at least one percent (1%) of the gross sales of the entity shall be distributed to the managerial, supervisory and technical group in place at the time of the effectivity of this Act, as compensation for such transitory managerial and technical functions as it will perform, pursuant to an agreement that the farmworker-beneficiaries and the managerial, supervisory and technical group may conclude, subject to the approval of the DAR. Section 33. Payment of Shares of Cooperative or Association. — Shares of a cooperative or association acquired by farmers-beneficiaries or workers-beneficiaries shall be fully paid for in an amount corresponding to the valuation as determined in the immediately succeeding section. The landowner and the LBP shall assist the farmers-beneficiaries and workers-beneficiaries in the payment for said shares by providing credit financing. Section 34. Valuation of Lands. — A valuation scheme for the land shall be formulated by the PARC, taking into account the factors enumerated in Section 17, in addition to the need to stimulate the growth of cooperatives and the objective of fostering responsible participation of the workers-beneficiaries in the creation of wealth. In the determination of price that is just not only to the individuals but to society as well, the PARC shall consult closely with the landowner and the workers-beneficiaries. In case of disagreement, the price as determined by the PARC, if accepted by the workers-beneficiaries, shall be followed, without prejudice to the landowner's right to petition the Special Agrarian Court to resolve the issue of valuation. CHAPTER IX Support Services Section 35. Creation of Support Services Office. — There is hereby created the Office of Support Services under the DAR to be headed by an Undersecretary. The Office shall provide general support and coordinative services in the implementation of the program particularly in carrying out the provisions of the following services to farmer-beneficiaries and affected landowners: 1) Irrigation facilities, especially second crop or dry season irrigation facilities; 2) Infrastructure development and public works projects in areas and settlements that come under agrarian reform, and for this purpose, the preparation of the physical development plan of such settlements providing suitable barangay sites, potable water and power resources, irrigation systems and other facilities for a sound agricultural development plan; 3) Government subsidies for the use of irrigation facilities; 4) Price support and guarantee for all agricultural produce; 5) Extending to small landowners, farmers' organizations the necessary credit, like concessional and collateral-free loans, for agro-industrialization based on social collaterals like the guarantees of farmers' organization: 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 farmers' organizations; 8) Undertake research, development and dissemination of information on agrarian reform and low-cost and ecologically sound farm inputs and technologies to minimize reliance on expensive and imported agricultural inputs; 9) Development of cooperative management skills through intensive training; 10) Assistance in the identification of ready markets for agricultural produce and training in other various prospects of marketing; andtai 11) Administration operation management and funding of support services, programs and projects including pilot projects and models related to agrarian reform as developed by the DAR. Section 36. Funding for Support Services. — In order to cover the expenses and cost of support services, at least twenty-five percent (25%) of all appropriations for agrarian reform shall be immediately set aside and made available for this purpose.n addition, the DAR shall be authorized to package proposals and receive grants, aid and other forms of financial assistance from any source.  Page | 22 Section 37. Support Services to the Beneficiaries. — The PARC shall ensure that support services to farmers-beneficiaries are provided, such as: (a) Land surveys and titling; (b) Liberalized terms on credit facilities and production loans; (c) Extension services by way of planting, cropping, production and post-harvest technology transfer, as well as marketing and management assistance and support to cooperatives and farmers' organizations; (d) Infrastructure such as access trails, mini-dams, public utilities, marketing and storage facilities; and (e) Research, production and use of organic fertilizers and other local substances necessary in farming and cultivation. The PARC sh