Agricultural Land Commercial Farms Corporate Farms Tenant Emancipation Law

(RA 6657, Section 11) (Sec 8 & 29) (Presidential Decree No. 27)

(a) All public and private agricultural
land; and
(b) Other lands of the public domain
suitable for agriculture.
Exclusions:
SCOPE Lands actually directly and exclusively
used for: parks, wildlife, forest reserves,
reforestation, fishponds sanctuaries and
breeding grounds, watersheds and
mangroves, prawn farms, penal
colonies, school cites, cemeteries,
church, mosque, research centres lands
with 185 slope or over and Ancestral
Lands.
(RA 6657, Section 4)
(a) Saltbeds; (a) All lands of public domain, leased,
(b) Fruit farms; held or possessed by multinational Private agricultural lands primarily
(c) Orchards corporations or associations; devoted to rice and corn under
(d) Vegetable and cut-flower farms (b) Other lands owned by the share tenancy or lease tenancy
(e) Cacao, coffee, rubber plantation. government or government owned and
controlled corporations, associations,
institutions or entities devoted to
existing and operational agri-
business or agro-industrial
enterprises
operated by multinational corporations .
(RA 6657, Section 8)

Compulsory Acquisition (a) Voluntary Offer to Sell; (a) Compulsory Acquisition Compulsory Acquisition
MODES OF (RA 6657, Section 16) (b) Compulsory Acquisition; (RA 6657, Sec 8)
(c) Direct Payment Scheme (b) Voluntary Offer to Sell
ACQUISITION (for farms owned and operated by
corporations or other business
associations [RA 6657, Sec 29])

Not more than 5 hectares

(RA 6657, Section 6) Not more than 5 hectares Not more than 1,000 hectares for
(RA 6657, Section 6) corporations and associations; Not more than 7 hectares
Considering the economic differences of
RETENTION LIMIT each type of agricultural product therein.
Considering the economic differences of Not more than 500 hectares for foreign
(RA 6657, Section 6-B) each type of agricultural product therein. individuals.
(RA 6657, Section 6-B)
3 hecs. for each children of the
landowner.
Exception:
LGU expropriation of private
agricultural lands for actual, direct and
exclusive public purposes. (RA 6657,
Section 6-A).

10 years from:
Within 10 years from effectivity of RA the effectivity of RA 6657 for farms Within 3 years from effectivity pf RA
IMPLEMEN- 6657. already existing at the said time; 6657
TATION -oOo-
(RA 6657, Section 5) 10 years from the first year of
commercial production and operation for
new farms.
 Agricultural Land Commercial Farms Corporate Farms Tenant Emancipation Law

Based on Priorities: Direct Issuance of CLT

(1) Lands more than 50 hectares
(June 30, 2012);
(2) Lands 24 up to 50 hectares;
DISTRIBUTION Lands 10 up to 24 hectares
SCHEME (June 30, 2013); and
(3) Lands 5 up to 10 hectares
(June 30, 2014)
DISTRIBUTION Maximum of 3 hectares
LIMIT (RA 6657, Sec 23)
(1)Agricultural lessees and share tenants;
(2) Regular farm workers;
(3) Seasonal Farm Workers;
(4) Other Farm Workers;
QUALIFIED (5) Actual Tillers or occupants of public
BENEFICIARIES land;
(6) Collectives or cooperatives;
(7) Others directly working on the land
a. Filipino Citizen; a.
b. Resident of the same Brgy. or
municipality of the land;
c. 15 y/o at the identification, screening
QUALIFICATIONS and selection;
d. Willing, able and equipped with
aptitude to cultivate and make land
productive.
a. Do not meet the basic qualifications;
b. waived right for compensation;
c. not paid 3 annual amortizatiion;
d. have not exercise right of redemption;
e. refused to pay 3 annual amortization;
(lands acquired thru VLT or DPS.)
f. those dismissed for a cause;
g. obtained substantially equivalent
employment with income equivalent to a
DISQUALIFICA-
regular farm worker;
TIONS h. retired or voluntarily resigned;
i. misused the land or diverted financial
support services;
j. misrepresented material facts in their
basic qualifications;
k. sold, disposed or abandoned the land;
l. converted land to non-agricultural
without prior approval of DAR;
m. adjudged of forcible entry or unlawful
detainer over the property; and
n. violated agrarian reform law and reg.
Individually
Collectively
(If land is not economically feasible and
sound to divide.)
Maximum of 3 hectares, minimum of 1
hectare
(1)Agricultural lessees and share tenants;
(2) Regular farm workers;
(3) Seasonal Farm Workers;
(4) Other Farm Workers;
(5) Actual Tillers or occupants of public
land;
(6)Collectives or cooperatives;
(7) Others directly working on the land
a. 18 y/o at the time of filing application
as beneficiary;
b. have willingness, aptitude and ability
to cultivate and make land productive;
c. employed in commercial farm
between June 15, 1988 and June 15,
1998.
a. Retired from service
(optional or compulsory);
b. Resigned;
c. Dismissed for a cause;
d. Waive or refuse to be a beneficiary;
and
e. Violated Agrarian Reform Law or
regulations.
(RA 6657, Section 11)
(RA 6657, Section 22)
(For individual worker-beneficiaries.)
Indirect
(If it is not economically feasible and
sound to divide the land.)
-oOo-
Individual worker beneficiaries;
Worker’s cooperative beneficiaries
-oOo-
-oOo-
(merely qualifies the tenant-
beneficiary to possess the land and
comply with certain conditions
preparatory to ownership.)
Issuance of EP
(vest absolute ownership)
3 hectares, if irrigated
5 hectares, if not irrigated
(1)Agricultural lessees and share tenants;
(2) Regular farm workers;
(3) Seasonal Farm Workers;
(4) Other Farm Workers;
(5) Actual Tillers or occupants of public
land;
(6)Collectives or cooperatives;
(7) Others directly working on the land
a. Filipino Citizen;
b. Resident of the same Brgy. or
municipality of the land;
c. 15 y/o at the identification,
screening and selection;
d. Willing, able and equipped with
aptitude to cultivate and make land
productive.
-oOo-
 PROCEDURES

LEASEHOLD
a. Area retained is tenanted;
APPLICATION b. Farmer-beneficiary leases the awarded land to another person;
c. Farmer-beneficiary leases the awarded land to the former landowner; or
d. Farmer’s cooperatives or associations leased the awarded land to an agricultural corporations (Code of Agrarian Reforms, RA 3844)
TERMS INDEFINITE
Lands Deductions

DETERMINATION Rice and other crops 25% of average normal harvest Amount used for seeds and cost of harvesting or threshing.
OF
LEASE RENTALS Sugar cane lands 25% of average normal harvest Value of the cost of seeds/cane points, harvesting, hauling, and/or trucking fee and
cost of processing.
25% of the average normal harvest for a specific area for
Coconut lands the preceding 3 calendar years Value of production cost. (RA 6657, Section 14)

EXTINGUISHMENT 1. Abandonment of the landholding;

2. Voluntary surrender (must have 3 months advance notice); or
3. Absence of successors

1. Land has been declared to be suited for residential or other urban purposes;
2. Failure of the lessee to substantially comply with any of the terms and conditions and/or provisions of CAR;
3. Lessee misused the landholding for other crops or purposes not agreed upon;
DISPOSSESSION 4. Lessee failed to adopt proven farm practices (CAR, Section 29, par 3);
5. Land or other substantial permanent improvement is substantially damaged or destroyed or unreasonably deteriorated;
6. Lessee does not pay the lease rental when it falls due; and
7. Lessee employed a sub-lessee on his landholding.
JUST COMPENSATION

1. Identification by the DAR of the land, landowner and beneficiary;

2. Notice of coverage by DAR to landowner and the price offer (Personal service of notice, by registered mail or posting in a conspicuous place in brgy. hall or
municipal hall where the land is located);
COMPULSORY 3. Reply by the land owner: (Determination of just compensation)
ACQUISITION AND a. If land owner accepts, Land Bank will pay the landowner w/in 30 days from execution and delivery of Deed of Transfer;
DISTRIBUTION b. If land owner rejects, DAR will determine just compensation thru summary administrative proceedings;
PROCESS c. If landowner disagarees, he may bring the matter to RTC (SAC) for final determination of just compensation.
4. Taking of immediate possession of the land by DAR:
a. If landowner receives payment;
b. If landowner does not respond to the Notice of Acquisition.
5. DAR will request RD to issue a TCT under the name of Republic of the Philippines;
6. Distribution of the land to qualified beneficiaries.
(RA 6657, Section 16)

DETERMINATION Land Bank of the Philippines (with respect to the valuation or just compensation) by virtue of EO 405 of 1990.
(RA 6657, Section 34)
VALUATION OF Factors: Formula:
1. Capitalized Net Income ------land use and productivity; CNI x 0.60 + CS x 0.30 + MV x 0.10 = Land Value -------- All factors are present;
JUST 2. Comparable Sales –----------- 70& BIR zonal value; and CS x 0.90 + MV x 0.10 = Land Value ------------------------ Capitalized Net Income is not present;
COMPENSATION 3. Market Value -------------------based on Tax Declaration CNI x 0.90 + MV x 0.10 = Land Value ----------------------- Comparable Sales is not present; and
(RA 6657, Section 17) MV X 2 = Land Value ------------------------------------------ CS and CNI are not present
RECKONING OF
VALUATION OF 1. Time of taking of possession; or
JUST 2. Time of full payment of just compensation, only in cases of undue delay in payment. (Lubrica v. Land Bank, GR No. 170220, 2006).
(RA 6657, Section 17)
COMPENSATION

Cash and financial instrument

a. Lands above 50 hectares -------------------------------------------25% cash and 75% government financial instrument;
b. Lands above 24 hectares to 50 hectares –------------------------30% cash and 70% government financial instrument; and
c. Lands 24 hectares and below –------------------------------------35% cash and 65% government financial instrument

1. Shares of stocks in government-owned or controlled corporations, preffered shares of the Land Bank, physical assets or other qualified investments;
MODE OF 2. Tax credits which can be used against any tax liability; and
3. Land Bank bonds:
PAYMENT a. Bonds shall mature every year until the 10th year;
OF b. Transferable and negotiable; or
COMPENSATION c. Can be used for:
i. Acquiring land or real property of government, assets of Assets Privatization Program or those foreclosed by government financial institutions (same
prov.);
ii. Acquisition of shares of stocks of government-owned and controlled corporations or private corporations;
iii. Bail bonds;
iv. Security loans with government financial institutions;
v. Payment for various taxes and fees to government;
vi. Payment for tuition of the immediate family member of the original bondholder;
vii. Payment for fees of the immediate family member of the original bondholder in government hospitals.
(RA 6657, Section 18)
AMORTIZATION
BASIS 5% of the annual gross production established by DAR
RA 6657 - Thirty (30) annual amortizations per 6% interest per annum.
Payment starts 1 year from:
a. Date of registration of CLOA; or
SCHEDULE OF b. Date of actual occupancy (if occupancy is after registration of CLOA.)
PAYMENT
PD 27 – Twenty (20) annual amortization plus 6% interest per annum in 20 ewual annual amortizations.
CONVERSION
Conversion Reclassification
a. Act of changing the current use of a piece of agricultural a. Act of specifying how agricultural lands shall be utilized for non-agricultural uses as
land or crops into some other use or of the higher value as embodied in the land use plan;
COMPARISON to the crops. b. Subject to the requirements and procedures for land use conversion;
c. Not sufficient to use agricultural land for non-agricultural purpose
APPLICANTS a. Beneficiary; or
b. Land owner with respect only to his retained area which is tenanted.
 PERIOD OF
FILLING a. When land ceases to be economically feasible for agricultural purposes; or
b. Locality has become urbanized.
APPLICATION
Lands cannot absolutely be subjected to conversion Areas highly restricted from conversion
a. Agricultural lands within protected areas; a. Irrigable lands not covered by irrigation projects with firm funding
b. All irrigated lands, where water is available to support crop production; committee;
c. All irrigated lands covered by irrigation projects with firm funding b. Agro-industrial croplands;
LIMITATIONS committee; and c. Highlands or areas with elevation of 500 meters or above;
d. All agricultural lands with irrigation facilities operated by private d. Lands with notice of land valuation and acquisition, or sunject of perfected
organizations. agreement between landowner and beneficiaries;
(RA 6657, Section 65) e. Environmentally critical areas (ECAs)
Public Agricultural Land Private Agricultural Land
CONVERSIONS TO Only up to a maximum of 5 hectares;
Only when the coastal zone is declared suitable for fishpond development Exceptions:
FISHPONDS by the Provincial Government and BFAR. a. When use of the land is more economically feasible and sound for
AND/OR fishpond and/or prawn farm; and
PRAWN FARMS b. With simple and absolute majority of regular farm workers or tenants
(RA 6657, Section 65-A) agree to the conversion.

POST IMPLEMENTATION
Sale or transfer of awarded lands within the period of 10 years.
Exceptions: (sell or transfer to the following)
a. Through hereditary succession (intestate or by will to compulsory heirs);
b. Government; Children or spouse of transferor can repurchase the land within 2 years from date of transfer
PROHIBITIONS c. Land Bank of the Philippines; or
d. Other qualified beneficiaries
(RA 6657, Section 27)
CERTIFICATE OF LAND OWNERSHIP AWARD (CLOA) EMANCIPATION PATENT
RA 6657 PD 27
a. It will serve as the basis for the issuance of an original transfer a. Vest absolute ownership to farmer-beneficiary over the landholding;
COMPARISON certificate of title under the farmer-beneficiary’s name.; and b. Constitute conclusive authority for issuance of an original TCT under farmer-
b. Indefeasible and imprescriptible after 1 year from the registration in beneficiary’s name; and
RD, subject to qualification, conditions and limitations of CARL) c. Indefeasible and imprescriptible after 1 year from the registration in RD,
subject to qualification, conditions and limitations of CARL.

ISSUANCE Upon full payment of the amortization by the farmer-beneficiary.

a. Individual title; or a. Individual title
TITLE NAME b. Collective title (for collective ownership only)
(RA 6657, Section 25)
Grounds:
a. Abandonment;
b. Neglect or misuse;
CANCELLATION c. Failure to pay 3 annual amortizations
d. Misuse or diversion of financial support services;
e. Sale, transfer or conveyance of the rights to use the land; and
f. Illegal conversion

JURISDICTION Secretary of Department of Agrarian Reform (Exclusive and original jurisdiction)

(RA 6657, Section 24, PD 27)
 INCENTIVES
a. Applies to fishponds and prawn farms;
b. Consists of 7.5% net profit before tax over;
c. Distributed within 60 days at the end of the fiscal year as compensation to:
i. Regular pond workers; and
ii. Other pond workers
(RA 6657, Section 32-A)

VOLUNTARY Additional 5% cash payment (applicable only to landowners other than banks and other financial institutions)
(RA 6657, Section 19)
OFFER FOR SALE

SHARES

STANDING CROPS Those unharvested at the time DAR acquired and take possession of the land under RA 6657, Section 16. (Subject to a reasonable time to harvest such crops.)
(RA 6657, Section 28)

HOMELOTS AND FARMLOTS

a. Lands awarded to worker’s cooperative or association;
b. Homelot and small farmlot with an area not exceeding 1,000 square meters (taken from the land awarded);
c. Can be use as a site of:
i.permanent dwelling;
ii. raising vegestables;
iii.poultry, pigs and other animals; and
iv.for engaging in minor industries.
d. Existing homelot in landowner’s retained area, shall be transferred to the farmlot of the beneficiaries (cost of transfer shall be shouldered by landowner.)
(RA 6657, Section 30)

SUPPORT SERVICES
1. Irrigation facilities (2nd crop or dry season);
2. Infrastructure development and public works projects under agrarian reform;
3. Government subsidies for irrigation facilities;
4. Price support and guarantee fro all agricultural produce;
5. Extending necessary credits to small landowners, farmers and farmer’s organization (e.g concessional and collateral-free loans);
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 farmer’s organization;
SUPPORTED 8. Undertake research, development and dissemination of information on:
SERVICES a. Agrarian reform;
b. Plants and crops best suited for cultivation and marketing; and
c. Low-cost and ecologically sound farm inputs and technologies.
9. Development of cooperative management skills thru intensive training;
10. Assistance in identification of the ready markets for agricultural produce and training of other various aspects of marketing;
11. Conduct an effective information dissemination system Department of Agriculture;
12. Create a credit guarantee fund for agricultural landowners; and
13. Administration, operation, management and funding of support services programs and projects.
(RA 6657, Section 35)
 a. During the 5-year extension period 40% of all appropriations for agrarian reform shall be made available to cover the expenses and cost of support services;
FUNDING b. For the next 5 years, a minimum of 2 Agrarian Reform Communities shall be established by DAR in each legislative district;
*Agrarian reform community is composed of and managed by agrarian reform beneficiaries.
SYSTEM c. Agrarian reform beneficiaries not in barangays within ARCs shall be adopted by the DAR
(RA 6657, Section 36)

a. Land surveys and titling;

b. Socialized terms on agricultural credit facilities;
*Agricultural facilities --------------------------------------------------------------------------------------30% of all appropriations in RA 6657, Section 36;
*Subsidies to support initial capitalization for agricultural production to-------------------------- 1/3 of segregated appropriation;
new agrarian reform beneficiaries upon award of EP or CLOA
*For access to socialized credit to existing agrarian reform beneficiaries ---------------------------2/3 of segregated appropriation.
and leaseholders

*DELIVERY SYSTEM for disbursement of the above financial assistance to individual agrarian reform beneficiaries, holders of collective titles and
cooperatives shall be provided by:
FOR i. Land Bank of the Philippines;
AGRARIAN ii.Other concerned government financial institutions,
iii.Accredited savings and credit cooperatives;
REFORM iv.Financial service cooperatives and accredited cooperative banks.
BENEFICIARIES  All of which may accept purchase orders, marketing agreements or expected harvest as COLLATERAL for loans.
 LOANS shall be used in improvement or development of the farmholding to enhance production, marketing and/or increase farm income.
 From the remaining 70% for the support services:
A. 15% shall be earmarked for farm inputs (as requested by duly accredited agrarian reform beneficiaries)
1. Seeds, seedlings and/or planting materials;
2. Organic Fertilizers;
3. Pesticides;
4. Herbicides; and
5. Farm animals, implements/machineries
B. 5% for seminars, trainings and the like
c. Technology transfer;
d. Infrastructure (e.g storage facilities, mini dams, etc.); and
e. Liberalized access to credits.
(RA 6657, Section 37)
Guarantee and assurances:
FOR a. Equal right to ownership of the land;
b. Equal shares of the farm’s produce; and
RURAL WOMEN c. Representation in advisory or appropriate decision-making bodies.
(RA 6657, Section 37-A)
a. Incentives for investing in rural-based industries;
FOR b. Land Bank will redeem the landowner’s agrarian reform bond at its face value of at least 50% of the proceeds thereof are invested in a Board of Investments-
registered company or agro-business enterprise in region covered by CARP;
LANDOWNERS c. Additional 2% cash incentive (Provided that landowner maintained his enterprise as a going concern or kept his investment in BOI-registered firm for 5 years.)
(RA 6657, Section 38)

LAND a. Promote equal distribution of landholdings;

b. Provide the needed infrastructures in agriculture; and
CONSOLIDATION c. Conserve soil fertility and prevent erosion.
*All of which shall be carried out by DAR.
(RA 6657, Section 39)