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A. Definitions and Terms: Tenure Structure, Production Structure and Structure For Supporting Services
A. Definitions and Terms: Tenure Structure, Production Structure and Structure For Supporting Services
AGRARIAN STRUCTURE
Refers to that complex set of relationships within the agricultural sector between
tenure structure, production structure and structure for supporting
services.
1. Land Tenure Structure is a concept that connotes one or more types of
land tenure system regulating the rights to ownership and control and usages of
land and the duties accompanying such rights.
a. Agricultural Tenancy refers to the manner of holding agricultural lands.
b. Share Tenancy under this system of landholding, tillers work the land as
sharecroppers entitled to share in the produce of the land.
c. Leasehold Tenancy is a tenurial system which was instituted by R.A.
No. 3844 (Code of Agrarian Reforms) characterized by lessor and lessee
relationship which is created either by written or oral agreement between
the parties or impliedly by acceptance of benefits by the landowner, or by
an act of cultivation thru the toleration of the owner.
Comments:
Leasehold relationship abolished the share tenancy system under the Rice Share
Tenancy Act of 1933 as amended, P.D. No. 27 was issued by then President
Ferdinand Marcos which aside from upholding the leasehold relationship,
likewise ordained the emancipation of tenant-farmers from the bondage of the
soil, and considered them ipso facto owners of the lands they till primarily
devoted to rice and corn.
P.D. No. 27 (Tenants Emancipation Decree) likewise fixed the retention limit for
the landowner an area not exceeding seven (7) hectares, provided, that such
landowner is cultivating or will now cultivate the land, and furthermore, that he
does not own other agricultural lands of more than seven (7) hectares.
d. Amortizing Owner a tenant-farmer whose status had been raised
automatically by operation of law from leasehold tenant to that of
amortizing owner, who makes repayments of the purchase price of the
land he tills to the Land Bank.
e. Full Owner or Owner-Cultivator is an amortizing owner (tenant-farmer)
who has completed full payment of his amortization to the Land Bank of
the Philippines, and is therefore entitled to a certificate of title under the
Torrens System.
Comments:
Under R.A. No. 3844, as amended by R.A. No. 6389, there are three shifts in the
conversion of the tenurial status of tenant-farmer to full owner, namely: share
tenant to leaseholder to amortizing owner, and from amortizing owner to full
owner (owner-cultivator).
An amortizing owner by operation of law (P.D. No. 27) is entitled to an
Emancipation Patent which serves as a farmholders provisional title of
ownership to the land upon completion of his amortization repayments to the
Land Bank, or to the Landowner in cases of farmers who have been amortizing
their lands with the landowner.
f. Owner-Cultivator is the term applied to a tenant farmer who has
attained the status of full owner and qualified beneficiary under the
Agrarian Reform Law of the Philippines.
2. Production Structure is a concept that refers to the use of the land, nature
and method of farm operation, and the process of production.
HISTORICAL BACKGROUND
Even before the Spaniard came into these Island, the idea of private ownership
of land was not prevalent. Land was commonly owned by the community or
barangay, cultivated communally or individually by members of the barangay.
When the Spaniard came in 1521, common ownership of land slowly took the
backseat, and private property became dominant, paving the way to Encomienda
system.
The encomienda was a vehicle used to collect taxes from Filipinos, who tilled the
land and surrendered part of their produce to the encomendero as tribute in the
form of agricultural crops, poultry, woven mats, etc. Towards the end of the 18 th
century, there was a mad scramble for wealth thru world trade. Thus,
encomienda were replaced by haciendas.
contrary or inconsistent with the provisions of this Act shall have suppletory
effect.
Republic Act No. 6657 - As primary agrarian land reform measure in the
country today, its operation covers all public and private agricultural lands,
including other lands of the public domain suitable for agriculture.
CHAPTER I
AGRICULTURAL LEASEHOLD CONCEPT
A. AGRICULTURAL LAND REFORM CODE (Rep. Act. No. 3844)
REPUBLIC ACT No. 3844 August 8, 1963
AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM CODE AND TO
INSTITUTE LAND REFORMS IN THE PHILIPPINES...
REPUBLIC ACT No. 3844
Section 1. Title - This Act shall be known as the Agricultural Land Reform
Code.
1. PREFATORY STATEMENTS
The thrust of this legislation is the drastic abolition of share tenancy system. It
provided for the automatic conversion of the sharecropper to the status of an
agricultural lessee, governed by the system of agricultural leasehold which is
established either:
a. by agreement of the parties, whether oral or written, or
b. by operation of law.
The Agricultural Land Reform Code still finds application to the following:
a. areas which have not come within the operation and implementation of
P.D. No. 27;
b. agricultural laborers subject to the provisions of the Labor Code;
c. organization and operation of the Land Bank;
d. provisions on resettlements of farmers;
e. right to pre-emption and redemption, with respect to land-owners retained
area, should such landowner decide to sell his tenanted / leased retained
area, the tenant has the preferential right to purchase and / or redeem the
same in case the land is sold to a third person without the tenants
knowledge;
f. right of the tenant / lessee to 75% share from the standing crops;
Three shifts in the mode of acquisition
a.
b.
c.
The third shift which converts the status of an amortizaing owner into full
owner or owner-cultivator upon full payment of the remaining balance of
the amortization.
Section 3. Composition of Code 1. An agricultural leasehold system to replace all existing share tenancy
systems in agriculture;
2. A system of crediting rental as amortization payment on purchase price;
3. A declaration of rights for agricultural labor;
4. A machinery for the acquisition and equitable distribution of agricultural
land;
5. An institution to finance the acquisition and distribution of agricultural land;
6. A machinery to extend credit and similar assistance to agricultural lessees,
amortizing owners-cultivators, owners-cultivator and
cooperatives;
7. A machinery to provide marketing, management and other technical
assistance and / or services to agricultural lessees, amortizing ownerscultivators, owner-cultivator, cooperatives;
8. A machinery for cooperative development;
9. A department for formulating and implementing projects of agrarian
reform;
10. An expanded program of land
11. A judicial system to decide issues arising under this Code.
12. A machinery to provide legal assistance to agricultural lessees, amortizing
owners-cultivator, and owners-cultivator.
Repayment Scheme and Credit Assistance
Jurisdiction on Agrarian Disputes
All agrarian disputes are now under the cognizance of the Department of
Agrarian Reform thru the Agrarian Reform Adjudication Board.
The Department of Agrarian Reform Adjudication Board (DARAB) in turn
delegates its functions to the respective Regional and Provincial Adjudicators of
the DAR. Any decision, order, award or ruling of the DAR on any agrarian
dispute, may be brought to the Court of Appeals on certiorari.
Special Agrarian Courts
Under the present law (R.A. No. 6657) all controversies involving the
determination of just compensation and prosecution of all criminal offenses
arising from violations of the provisions of this Act, fall under the original and
exclusive jurisdiction of Special Agrarian Courts.
Bureau of Agrarian Legal Assistance
They shall be responsible for the development of plans and programs for the
extension of legal information to farmers; extension of legal services to them.
DEFINITION OF TERMS
Agricultural land means land devoted to any growth, including but not limited
to crop lands, saltbeds, fishponds, idle land and abandoned land.
Agricultural lessee means a person who by himself and with the aid available
from within his immediate farm household, cultivates the land belonging to, or
possessed by, another with the latters consent.
Agricultural lessor means a person, lets or grants to another the cultivation
and use of his land for a price certain.
Agricultural year means the period of time required for raising a particular
agricultural product.
Farm implements means hand tools or machineries in a farm enterprise.
Immediate farm household - means the members of the family of the lessee or
lessor and other persons who are dependent upon him for support.
Proven farm practices means sound farming practices.
Personal cultivation means cultivation by the lessee or lessor in person.
Work animals means animals ordinarily employed in a farm enterprise.
Agrarian dispute means any controversy relating to terms, tenure or condition
of employment, or concerning an association or representation of persons in
negotiating, maintaining, changing or seeking to arrange terms on conditions of
employment.
Agricultural owner-cultivator means any person who, personally cultivates
his own land.
Fair rental value means the value not in excess of allowable depreciation plus
6% interest per annum.
Incapacity means any cause or circumstance which prevents the lessee from
fulfilling his contractual and other obligations under the Code.
Modes of Land Tenure Allowed under R.A. No. 3844
1. Leasehold system characterized by a tenant farmer personally and
actually cultivating the farmholding under a leasehold relationship whereby
the lessee pays a fixed amount of rental whether in cash or in kind to the
lessor.
2. Share tenancy
3. Owner-cultivatorship
4. Cooperative-cultivatorship which is a form of agrarian relationship
among members of a cooperative who work and live on the land as tillers
in common.
5. Labor administration which employs laborers and workers on a daily
wage basis, and engaged in a large scale plantation farming of permanent
crops by their respective managers.
How Leasehold Relation is Established
1. by agreement of the parties
2.
by operation of law implementation of R.A. No. 3844 providing for
the abolition of share tenancy.
Parties to Leasehold Relation
1.
2.
the landholder
the person who personally cultivates the land.
It makes it a penal offense to eject a tenant illegally from his holding except upon
approval of the court.
Doctrine on security of land tenure
Security of land tenure the agricultural leasehold relation under this Code, shall
not be extinguished by mere expiration of the term or period in the leasehold
contract, in case the agricultural lessor sells, alienates of transfers the legal
possession of the landholding, the purchaser or transferee thereof shall be
subrogated to the rights and substituted to the obligations of the agricultural
lessor.
In order to possess the status of a de jure tenant, the following essential
requisites must concur, to wit:
1.
2.
3.
4.
5.
6.
The absence of one does not make an occupant of a parcel of land or a cultivator
thereof, a de jure tenant, hence cannot invoke the defense of security of tenure.
What then constitutes as family-size farm so as to give rise to tenancy
relationship?
Family-size farm an area of farmland that permits efficient use of labor and
capital resources of the farm family and will produce an income sufficient to
provide a modest standard of living to meet a farm familys needs for food,
clothing, shelter, and education with possible allowance for payment of yearly
installments on the land, and reasonable reserves to absorb yearly fluctuations in
income.
What now is the effect of the law to cultivator-tiller of a less than family-size
farms?
Such landholder-tiller or tiller-sharer, is at most considered as a mere caretaker
before the eyes of the law who is not entitled to the security of tenure.
Should the landholding be sold or alienated to a new owner, what happens
to the rights and obligations of the transferee and his heirs?
The transferee and his heirs are subrogated to the rights and obligations of the
former landowner. However, the change of landowner cannot be allowed to raise
the status of a mere caretaker or tiller sharer to that of an agricultural tenant
and leaseholder.
Causes for Extinguishment of Leasehold Relation
1. Abandonment of the landholding;
2. Voluntary surrender of the landholding;
3. Absence of successor or qualified heir, in case of death or permanent
incapacity of the lessee;
4. Judicial ejectment of the lessee;
5. Acquisition by the lessee of the landholding;
6. Termination of the leasehold under Sec. 28;
7. Mutual consent of the parties;
8. Conversion of the landholding for non-agricultural purposes.
Obligations of the Lessees
1. To cultivate and take care of the farm as a good father of a family
2. To inform the agricultural lessor any trespass committed by third persons
upon the farm;
3. To take reasonable care of the work animals and farm implements
delivered to him by the agricultural lessor, he shall be held responsible
and made answerable therefore to the extent of the value of the work
animals and / or farm implements at the time of the loss, death or
destruction;
4. To keep his farm and growing crops attended to during the work season.
In case of unjustified abandonment all of the expected produce, any upon
order of the court be forfeited in favor of the agricultural lessor.
5. To notify the agricultural lessor at least three (3) days before the date of
harvesting;
6. To pay the lease rental to the agricultural lessor when it falls due.
Section 26, R.A. No. 3844, empowers the lessee to take direct action against any
trespasser to the landholding without waiting for the response from the lessor.
Prohibitions to Agricultural Lessee
a. To contract to work additional lanholdings belonging to a different
agricultural lessor;
b. To acquire and personally cultivate a family-size farm without knowledge
and consent of the agricultural lesor;
c. To employ a sub-lessee.
Termination of Leasehold by the Lessee
1.
2.
3.
4.
5.
3.
4.
5.
To require the agricultural lessee to assume, any part of the rent, to pay
to third persons for the use of the land;
To deal with millers or processors without written authorization of the
lessee;
To discourage, the formation, maintenance or growth of unions or
organizations of agricultural lessees in his landholding.
Comments:
The right to self organization includes the right to strike and hold picket in order
to compel the management in the case of large scale plantations and
multinational corporations to meet the demands of the farm workers for wage
increase and better working conditions.
Irrigation Facilities
Permanent irrigation system may be constructed at the expense of the lessor:
1. Should the lessor refuse to bear the expenses, he should not be entitled
to the increase in rental and shall upon the termination of the leasehold
relationship pay the lessee or his their the reasonable value of the
improvements at the time of the termination;
2. Should the lessor bear expenses he shall be entitled to an increase in the
rental proportionate to the resultant increase in production.
Management of Irrigation System
1.
2.
2.
3.
25% of the average normal harvest shall be the amount of rental for
ricelands or estimated normal harvest during the three (3) agricultural
years immediately preceding the establishment of the leasehold after
deducting the expenses for seeds, cost of harvesting, threshing, loading,
hauling and processing;
Average normal harvest for three (3) preceding years.
No agreement as to rental the court (now DAR) shall fix a provisional
rental until fixed rental is determined within (30) days from submission of
the case for decision.
Default on the Part of the Lessee: Should the lessee incur default in the payment
of at least three (3) installments on the loan, the lender shall immediately notify
the Land Bank and the DAR so that appropriate steps shall be taken by these
agencies:
a) to answer for the default in case the failure is due to fortuitous event
b) to take over the ownership and administration of the landholding.
Where the case of the default is attributable to the lessee, the DAR shall
endeavor to substitute the defaulting amortization owner. In case the default is
due to fortuitous event, the Land Bank shall assume the payment of the balance
and the farmer shall be released from his obligation.
Period of Prescription
An action to enforce any cause of action accruing under this Code (R.A. No.
3844) shall be brought within the period of three (3) years.