Luz Farms vs Secretary of Agrarian Reform

In 1988, RA 6657 was approved by the President of the Philippines. It

includes the raising of livestock, poultry, and swine in its coverage.
In 1989, the Secretary of Agrarian Reform promulgated the IRR of Secs. 11,
13, and 39 of the said law.
Luz Farms, a corporation engaged in the livestock and poultry business,
allegedly stands to be adversely affected by the enforcement of certain
sections of RA 6657, of the Guidelines and Procedures Implementing
Production and Profit Sharing under RA 6657, and of the IRR of Section 11. It
prays that the aforesaid statutes be declared unconstitutional.
ISSUE:
W/N the CARL should include the raising of livestock, poultry and swine in its
coverage.
W/N the requirement in Sections 13 and 32 of RA 6657 directing corporate
farms to execute and implement production-sharing plans is unreasonable
for being confiscatory and violative of due process, with respect to livestock
and poultry raisers.
HELD:
NO. It was never the intention of the framers of the Constitution to include
the livestock and poultry industry in the coverage of the agrarian reform
program of the government. The intention of the Committee was to limit the
application of the word agriculture. Thus, Section II of RA 6657 which
includes private agricultural lands devoted to commercial livestock, poultry,
and swine raising in the definition of commercial farms is invalid, to the
extent that the aforecited agro-industrial activities are made to be covered
by the agrarian reform program of the State.
YES. As there is no reason to include livestock and poultry lands in the
coverage of agrarian reform, there is no need to call upon them to distribute
from 3% of their gross sales and 10% of their net profits to their workers as
additional compensation.
NO. Substantial distinctions exist between land directed purely to cultivation
and harvesting of fruits or crops and land exclusively used for livestock,
poultry and swine raising that make real differences:
1. There are no tenants nor landlords in livestock and poultry businesses;
2. Livestock and poultry do not sprout from land;

3. Land is not a primary resource;

4. Livestock and poultry production are industrial activities;
Livestock and poultry farmworkers are covered by minimum wage law rather
than by tenancy law.