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AGRICULTURAL DEVELOPMENT

Agriculture: The Backbone of the Nation
CONTRIBUTIONS OF AGRICULTURE Supply raw materials to industry Increase income Release of labor force in agriculture to industry Export earnings of country Job creation Balanced development

• PROBLEMS OF AGRICULTURE • Risky business • Financing • Production • Processing • Marketing • Lack of government support • Prices of agricultural products are not stable • Limited land to cultivate

SOURCES OF SMALL SCALE AGRICULTURAL PROGRESS Technological change and innovation Appropriate government economic policies Supportive Social Institutions

• CONDITONS FOR GENERAL RURAL ADVANCEMENT • Modernizing farm structures to meet rising food demands LAND REFORM) • Creating an effective supporting system • Changing the rural environment to improve levels of living

Definition of terms
LAND REFORM : full range of measure that may or should be taken to improve or remedy the defects in the relationship among men with respect to their rights in the land It is concerned with rights in land, and their character, strength and distribution AGRARIAN REFORM : includes land reform and the reform and development of complementary institutional framework such as administrative agencies of the government It focuses on broader set of

issues: the class character of the relations of production and distribution in farming and related enterprises, and how these connect to the wider class structure

Land tenure structure ; one or more types of land tenure systems regulating the rights to ownership and control and usage of land and the duties accompanying such rights

Production structure : relates to the nature, type and modus operandi as well as the actual production or farm operation

ASPECTS OF AGRARIAN REFROM
• • • • ECONOMIC ASPECTS Vital position in national economy Obstacle top agricultural productivity An instrument for increasing agricultural productivity

• SOCIO-CULTURAL • It is a multifaceted program • Assumption about Filipino tenant farmers
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RELIGIOUS ASPECT Biblical background Papal teachings Church estates

Moral aspect Peace and internal stability Landowner is more than compensated Injustice in landlordism Innate tendency of man to own land

• POLITICAL ASPECT • Top priority of the government • As a political process

• LEGAL ASPECT • Two vantage points • To conform with constitution • Constitutional mandates • Policy development

• • • •

WAYS OF CHANGING THE AGRARIAN STRUCTURE Revolutionary situation Authoritarian regime Within politically democratic framework

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Requirements for successful implementation Provisions of a line of command from the center to field levels Provisions of supporting services Enforcement of administrative organization and procedures and judicial system Involvement of beneficiaries in the implementation

Variations of agrarian reform programs • Retention ceilings • Recipients or beneficiaries • Valuation • Mode of payment • Repayment of new owners • Government support • Obligations of the new owners

HISTORY OF AGRARIAN REFORM
I. PRE SPAINSH TIME (land pattern, social classes) II. THE SPANISH Encomienda system Feudal system Capitalism emerged Royal Decrees of 1880 and 1884 (legal title) 1896 revolution with peasant 1898 peasants gained control Spain ceded Philippines to US through the Treaty of Paris

III. AMERICAN PERIOD Tenancy of peasants on friars continued Introduced capitalism LAWS : Philippine Organic Act 1902 : private individuals = 16 hectares ; corporations = 1,024 Land Registration Act of 1902: systematic registration of land through Torrens system Public Land Act of 1903 – homestead system

• IV. Philippine Independence : TydingsMcDuffie Law. • Provision of a 10 year transition period when the commonwealth Government was to be organized • Social Justice Program : anti-usury, tenancy regulation, issuance of license to homesteaders to farm on public lands

V. JAPANESE OCCUPATION Peasant took up arms HUKBALAHAP (March 29, 1942) End of war marked the end of HUKBALAHAP Huk Revolution (1946-1947) Huks were defeated through the assitance of the US

VI. AGRARIAN REFORM UNDER FILIPINO LEADERSHIP QUEZON (1935-1944) Rice Tenancy Law CROP SHARING Crop Sharing loans for tenants ROXAS AND QUIRINO (1946-1953) RA 34 : 70-30 crop sharing LASEDECO : Land Settlement Development Corportaion after WWII MAGSAYSAY (1953-1957) Agricultural Tenancy Act of 1954 (RA 1199) Land Reform Act of 1955 (RA 1400)

 Regulate all forms of tenure relations  Rights to Share tenants to leasehold  Security of tenure to tenants  Rice and corn lands

Reduce large landholdings and consolidate smaller, uneconomic holdings into plots of adequate sizes Resettle tenants in areas where land is abundant Provide adequate credit facilities for small landholders Reduce rental and interest rates Secure land titles for small landholders Reform property tax structure NARRA free distribution of lands of public domain to landless tenants

MACAPAGAL (19611965) Land Reform Code (RA 3844) – farmers to own the land they till Retention limit 300 to 75 Abolished share tenancy and instituted leasehold system

MARCOS (`965-1986) PD 2 share tenancy as illegal and declared entire country as an agrarian reform are PD 27 Rice and corn lands Landholdings to 7 HA CLT and Emancipation Patents to new owners DAR created ( RA 6389)

AQUINO 1986-1992
Proclamation 131 : CARP as major program of the government EO 229 : mechanism for CARP’s implementation EO 129-A strengthening DAR as lead agency for implementaion of CARPP EO 228 : full landownership to qualified benficiries; manner of payment and mode oc compensation to land owner RA 6657 : CARL : signed June 10, 1988 and took effect June 16, 1988

EO 405 : Land Bank of the Philippines as responsible for land valuation EO 406 : CARP as central to the government’s effort to hasten countryside agroindustrial development and directed the implementing agencies for alignment of their programs. EO 497 : directives to all government instrumentalities

Necessity of agrarian reform

OBJECTIONS TO AGRARIAN REFORM  Fragmentation of farm holdings

• Economic • Social • political

Small farms uneconomic
Small landholdings included It failed in the past

COMPREHENSIVE AGRARIAN REFORM LAW ( R.A. 6657)

• Agrarian Reform is the redistribution of lands to farmers and regular farm workers who are landless, irrespective of tenurial arrangements

• VISION A nation where there is equitable land ownership with empowered agrarian reform beneficiaries who are effectively managing their economic and social development for a better quality of life
• MISSION CARP seeks massive and rapid increase in agricultural productivity and improvement of access of the masses to resources, particularly land

NEED for CARP Revival and development of Philippine Agriculture sector Increase productivity Essential element Shift of capital from land to industry Imperatives of the president Cooperation, harmony and understanding Participation of all concerned Partner of the Philippines to the continuing program of the government Needs of times call for a change Forces of history

NEEDS of CARP Realistic and flexible Funds Infrastructure projects Education

OBJECTIVES
Equity Capability Sustainability

POLICY
Welfare of landless farmers Encourage the formation of economic sized families Land has a social function and land ownership has social responsibility

Comprehensive Agrarian Reform Program: ☺ Redistribution of agricultural land; the education and organization of beneficiaries, and the delivery of support services-credit, infrastructure, technology, post harvest, and the like ☺ Centerpiece of Aquino Administration and signed by Pres. Aquino June 10, 1988 and took effect June 15, 1988

SCOPE : Ownership and the control of more or less 10.3 million ha. Of agricultural land, representing about one third of the total area of the Philippines, shall be transferred over a 10 year period to an estimated 3.9 million beneficiaries.

LANDS COVERED BY CARP
• Public agricultural lands: lands of public domain suitable for or devoted to agriculture

Lands covered by CARP: All public and private agricultural lands regardless of tenural arrangement and commodity produced

• Private agricultural lands : those owned by private entities or by government agencies in a propriety capacity

LANDS OF MULTINATIONAL CORPORTAION Implementation is to be completed within 3 years Scope : In excess of 1000 Ha and 500 Ha in excess of foreigner Contracts covering areas not in excess of 1000 Ha in case of corporations, and 500 for individuals are allowed to continue until August 29,1992 Implementation not later than 10 years Distribution and formation of workers’ cooperative Production and income sharing Modern technology in production

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COMMERCIAL FARMING Subject to compulsory acquisition New farms, the ten year period begins after 1st year commercial production Initiation steps to acquire land VOS, CA or direct payment scheme Production and income sharing Grounds for disqualification Mandatory requirement Optional retirement or resignation Dismissal for cause by final judgment Waiver or refusal to be beneficiary Violation of agrarian reform laws

EXEMPTIONS
LANDS ACTUALLY, DIRECTLY AND EXCLUSIVELY USED AND FOUND TO BE NECESSARY FOR : Forest reserves and reforestation Fish sanctuaries and breeding grounds Watersheds and mangroves School sites and campuses Church sites Communal or burial grounds Penal colonies and penal farms Government and private research and quarantine centers All lands with 18% slope and over except those already developed

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Parks and wildlife

National defense

•Church sites and convents, mosques

ANCESTRAL LANDS Protection of rights of indigenous cultural to ensure their economic, social and cultural well being communities Suspension of the implementation Enactment of regional laws

• SEC. 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 System shall be respected. • The right of these communities to their ancestral lands shall be protected to ensure their economic, social and cultural well-being. In line with the other 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.

ORDER OF PRIORITY AREAS
PHASE ONE Rice and corn lands under PD 27 All idle or abandoned lands All private lands voluntary; offered by the owners of agrarian reform All lands foreclosed by governmental financial institution All lands acquired by PCGG All lands owned by the government devoted to or suitable for agriculture 4 years implementation

PHASE TWO All alienable and disposable public agricultural lands All arable public agricultural lands under agro-forest, pasture and agricultural leases All public agricultural lands which are opened for new development and resettlement All private agricultural lands in excess of 50 Ha 4years implementation PHASE THREE : all other private agricultural lands commencing with large landholdings and proceeding to medium and small landholdings Landholdings above 24 Ha up to 50 Ha ( 3years) Landholdings from the retention limit of up to 24 Ha (3 years)

LAND DISTRIBUTION
Donor by RA 6657: Landowner RETENTION LIMIT : LANDOWNER § 5 Ha § 3 Ha to each child : (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 area originally retained by them thereunder; § Section 6, Chapter II

• BENEFICIARY: Natural or juridical persons Distribution Limit : 3 Hectares

RETENTION LIMIT
• RIGHT TO CHOOSE : compact and contiguous • EXCEPTION : • Tenants refusal – leaseholder- not beneficiary • Option has to be within 1 year period

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. In 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. In 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.

QUALIFICATION TO BE BENEFICIARY

ORDER OF PRIORITY IN LAND DISTRIBUTION Agricultural lesses and share tenants Regular farmworkers Other farm workers Actual tillers or occupants of public lands Collective or cooperatives of the above beneficiaries Others directly working on the land

Landless 15 years old or head of the family at the time the property was transferred in the name of the Republic of the Philippines Willingness, ability and aptitude to cultivate the land to make it productive

Modes how private lands are acquired
OPERATION LAND TRANSFER (OLT)  Rice and corn lands  PD 27 COMPULSORY ACQUISITION (CA)  Acquired through mandate of law

VOLUNTARY OFFER TO SELL (VOS)  Landowners come forward to the gov’t to offer their lands to DAR

EXECUTIVE ORDER 407  Government owning agricultural lands

VOLUNTARY LAND TRANSFER  Landowners offer their lands for sale directly to qualified beneficiaries

Steps in land acquisitions

Identification of landowners and beneficiaries Land valuation and landowners’ compensation Transfer of Title from the landowner

Registration of landowners : to file sworn statement in the Assessor's office Co-owned, mortgaged and sequestered lands Valuation of property for compensation purposes exemptions

• REGISTRATION OF BENEFICIARIES • DAR, through BARC shall register all agricultural lessee. Tenants or farm workers • Posting of registry list • Purpose of registration

TENANTS / LESSEE RIGHT OF REDEEMTPION
• LANDOWNER MUST FIRST OFFER TO SELL HIS LAND TO TENANT • THE TENANT HAS THE RIGHT TO REDEEM THE LAND AT REASONABLE PRICE IF LANDOWNER DECIDES TO SELL WITHOUT TENANTS CONSENT • SALE OR TRANSFER TO THE GOVERNMENT ACQUIRED BY THE BENFICIARY UNDER CARL SHALL BE SUBJECT TO REPURCHASE OF THE RIGHT OF THE CHILDREN OR SPOUSE

Valuation of the land

MARO sends notice To landowner and beneficiary LBP for valuation

MARO makes report TO PARO To complete Valuation and For recommendation To DAR central Office

NOTICE From DAR to Landowner to Acquire land

Acceptance Or rejection of landowner

redistribution

Payment In case of acceptance

DAR prepares for signatory Of secretary

DAR makes review Through BLAD

Taking position

Determination of compensation

Landowner’s compensation
• Cash and government bonds • excess 50 ha : 25% cash • 24-50ha : 30% cash • Less than 24 ha : 35% cash

Government instruments : shares of stocks in government corporations, tax`credits, Land Bank bonds

Payment scheme for beneficiaries

• Lands awarded is to be paid to the Land Bank of the Philippines in 30 annual amortization at 6 % per annum (VOS, CA, EO 407); and 20 annual amortization at 6% (OLT)

• Payments made affordable 1st five annual payments may not exceed five percent of the value of the annual gross production as established by DAR n.b. LBP may reduced the interest rate after the fifth year should there be an increase of 10% of the annual gross production

• 100,000; 35,000 • 220,000-35,000= 185,000

Support services
BENEFICIARIES Land survey and titling Liberalized terms on credit facilities and production loans Extension services by wat of planning, cropping, production and post harvest technology transfer Infrastructure support Research, production and use if organic fertilizers Training and education assistance

LANDOWNERS Investment information, financial and counselling assistance Facilities programs and schemes for conversion and exchange of baonds Marketing of LBP bonds

SEC. 63. Funding Source
• The initial amount needed to implement this Act for the period of ten (10) years upon approval hereof shall be funded from the Agrarian Reform Fund created under Sections 20 and 21 of Executive Order No. 229.Additional shall include the following: (a) Proceeds of the sales of the Assets Privatization Trust; (b) All receipts from assets recovered and from sale of ill-gotten wealth recovered through the Presidential Commission on Good Government; (c) Proceeds of the disposition of the properties of the Government in foreign countries;

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SEC. 63. Funding Source
• (d) Portion of amounts accruing to the Philippines from all sources or official foreign aid grants and concessional financing from all countries, to be used for the specific purposes of financing production credits, infrastructures, and other support services required by this Act; (e) Other government funds not otherwise not appropriated All funds appropriated to implement the provisions of this Act shall be considered continuing appropriations during the period of its implementation.

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• SEC. 64. Financial Intermediary for the CARP. - The Land Bank of the Philippines shall be the financial intermediary for the CARP, and shall insure that the social justice objectives of the CARP shall enjoy a preference among its priorities. •

Proofs of landownership
Emancipation patents for OLT lands Certificates of landownership Award (CLOA) for CA, VOS and EO 407 lands for resettlement areas Free patents for public lands

Grounds for forfeiture of awarded lands
♣ Non payment of a total of three annual amortizations ♣ Negligence ♣ Misuse ♣ Unauthorized sale of land or any support extended

Prohibited Acts and Omissions(Chapter XV, Sec.73)
• (a) The ownership or possession, for the purpose of circumventing the provisions of this Act, of agricultural lands in excess of the total retention limits or award ceilings by any person, natural or juridical, except those under collective ownership by farmer-beneficiaries. (b) The forcible entry or illegal detainer by persons who are not qualified beneficiaries under this Act to avail themselves of the rights and benefits of the Agrarian Reform Program; (c) The conversion by any landowner of his agricultural land into nonagricultural use with intent to avoid the application of this Act to his landholdings and to dispossess his tenant farmers or the land tilled by them; (d) The willful prevention or obstruction by any person, association or entity of the implementation of the CARP;

Prohibited Acts and Omissions(Chapter XV, Sec.73)
• (e) The sale, transfer, conveyance or change of the nature of lands outside of urban centers and city limits either in whole or in part after the effectivity of this Act. The date of the registration of the deed of conveyance in the Register of Deeds with respect to titled lands and the date of the issuance of the tax declaration to the transferee of the property with respect to unregistered lands, as the case may be, shall be conclusive for the purpose of this Act; (f) The sale, transfer or conveyance by a beneficiary of the right to use or any other usufructuary right over the land he acquired by virtue of being a beneficiary, in order to circumvent the provisions of this Act.

GOVERNMENT AGENCIES INVOLVED IN LAND ACQUISITION

DAR

DENR

LBP

LRA

NIA

DPWH

DA

DTI