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Agrarian Barte Notes PDF
Agrarian Barte Notes PDF
INTRODUCTION
Reform – presupposes that something is defective, hence, needs reformation and correction.
Land Reform – denotes a broad concept of conventional and revolutionary measures intended to
correct certain defects in the relationship between landowner and tiller regarding their rights and
obligations in the cultivation and management of landholding.
Agrarian Reform – refers not only to land reform but also embraces a full range of measures
designed to improve the relationship between landowner and tiller, employer and employee,
corporate management and stockholders, cooperatives and members, and other farmers’
organizations including their economic, social and political relations with the community and the
government.
Comments:
Under the Comprehensive Agrarian Reform Law of 1998 (R.A. No. 6657), Agrarian Reform is defined
as the redistribution of lands, regardless of crops or fruits produced, to farmers and regular
farmworkers who are landless, irrespective of tenurial arrangement.
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.
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.
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 farmholder’s 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.
3. Structure for Supporting Services – is an agrarian reform measure designed to help the tenant –
tiller in the availment of credit facilities, marketing of his products, supplying of seeds, insecticides,
fertilizers, irrigation, storage, processing and other technical assistance / services in direct bearing to
reforms of tenure and production structures.
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 18th century, there was a mad scramble for wealth
thru world trade. Thus, encomienda were replaced by haciendas.
The state shall promote a just and dynamic social order that will free the people from poverty through
policies adequate social services, promote full employment, a rising standard of living, and an
improve quality of life for all.
The state shall promote a comprehensive rural development and agrarian reform.
The State shall, by law, undertake an agrarian reform program founded on the right of the farmers
and regular farmworkers, who are landless, to own directly or collectively the lands they till or, in the
case of other farmworkers, to receive a just share of the fruits thereof. (Art. XIII, Social Justice and
Human Rights, Sec. 4).
In order to implement the 1987 Constitution, Congress passed the Comprehensive Agrarian Reform
Law of 1988. (R.A. NO. 6657) which was signed into law by the President of the Phillippines on June
10, 1988, and took effect on June 15, 1988. This is the main law on agrarian reform in the Philippines
today. The CARL provides that all other laws on agrarian reform not contrary or inconsistent with the
provisions of this Act shall have suppletory effect.
Treaty of Paris (1898) – the confiscation of friar lands and distributed among peasants by the
independent government of Malolos during the Philippine Revolution.
Philippine Bill (1902) – Limited private individual landholdings to 16 hectares, and corporate
landholdings to 1,024 hectares.
Land Registrations Act (1902) – Landowners were required to register their landholdings and
acquire Torrens titles to land properties.
Friar Land Act – Instituted transfer of friar lands to the tenants to diffuse the peasant unrest.
Rice Share Tenancy Act (Public Act No. 4054) - which provided for a 50-50 sharing of the crop, an
interest rte ceiling of 10 percent per crop year, and safeguards against arbitrary dismissal of tenants
by landlords.
Commonwealth Act.No. 278 of 1938 – to buy farms and large estates for subletting to bonafide
occupants with an option to buy, thru the National Land Settlement Administration (NLSA).
Sugar Cane Tenancy Contracts Act. (Act. No. 4113) – makes it a duty of the sugar central to
exhibit to the tenant the receipts of the number of tons milled by the landowner thereat.
Commonwealth Act. No. 103 – created the Court of Industrial Relations (CIR) which exercised
jurisdiction over disputes arising from relationship between agricultural workers and landowners.
Commonwealth Act. No. 213 – deals with the right to form legitimate labor organizations and to
enter into collective bargaining agreements between management and labor.
Commonwealth Act No. 178 – which improved the provision of Act No. 4054 the Rice Share
Tenancy Act, giving more teeth and protection to the rights of tenants of agricultural lands.
Republic Act. No. 34 – amended certain Sections of the Rice Share Tenancy Act providing for a 70
– 30 crop – sharing method.
Republic Act No. 1160 – established the National Resettlement and Rehabilitation Administration
(NARRA) of landless dissidents and other landless farmers.
Republic Act No. 1199 (Agricultural Tenancy Act) – infused an added boost to the tenurial rights of
tenant – tiller.
Land Reform Act (R.A. No. 1400, 1955) - guaranteed the expropriation of all tenanted landed
estates. It set a retention limit of 300 hectares for individually – owned estates, and 600 hectares for
corporate – owned estates.
Republic Act. No. 1267 – An Act Creating the Court of Agrarian Relations to try and decide all
matters arising from the relationship of persons in the cultivation and use of agricultural lands.
Republic Act. No. 3844 – marked the abolition of share tenancy and / or the system of share –
cropping between landowner and tenant, and the automatic conversion of share tenants into
leaseholders.
Republic Act No. 6389 (Code of Agrarian Reforms) – an improvement of R.A. No. 3844, this
amendatory Act featured the creation of the Department of Agrarian Reforms (DAR).
Agrarian Reform Special Fund Act (Rep. Act. No. 6390) – provided for a special account and
financial support for the Agrarian Reform Program of the government.
Presidential Decree No. 2 – declaring the entire nation as a land reform area.
Presidential Decree No. 27 – decreeing the emancipation of the tenants, transferring to them the
ownership of the land they till.
Proclamation No. 131 – Instituting a comprehensive agrarian reform program which covers, all
public and private agricultural lands as provided in the Constitution.
Executive Order No. 228 – Declaring full landownership to qualified beneficiaries covered by
Presidential Decree No. 27.
Executive Order No. 229 – Providing for the mechanisms for the implementation of the
comprehensive agrarian reform program, creating the Presidential Agrarian Reform Council (PARC).
Executive Order No. 129-A – Modifying Executive Order No. 129, reorganizing and strengthening
the Department of Agrarian Reform.
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
AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM CODE AND TO INSTITUTE LAND
REFORMS IN THE PHILIPPINES, INCLUDING THE ABOLITION OF TENANCY AND THE
CHANNELING OF CAPITAL INTO INDUSTRY, PROVIDE FOR THE NECESSARY
IMPLEMENTING AGENCIES, APPROPRIATE FUNDS THEREFOR AND FOR OTHER PURPOSES
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:
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-owner’s 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 tenant’s knowledge;
f. right of the tenant / lessee to 75% share from the standing crops;
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 owners-cultivators, 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.
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.
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.
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 latter’s
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.
Immediate farm household - means the members of the family of the lessee or lessor and other
persons who are dependent upon him for support.
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.
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
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.
1. the landholder
2. the person who personally cultivates the land.
1. It is essentially personal, in the sense that it cannot be exercised by third persons other than
the lessor himself, and the lessee who personally cultivates the land;
2. It has the nature of an in rem or real relationship, because it imposes a burden upon the land
subject of the landholding and continues to exist even by the death or incapacity of either
party, or the expiration of the agreement.
It makes it a penal offense to eject a tenant illegally from his holding except upon approval of the
court.
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:
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.
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 family’s 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.
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.
1. Cruel, inhuman or offensive treatment of the agricultural lessee by the agricultural lessor;
2. Non-compliance on the part of the agricultural lessor with any of the obligations imposed;
3. Compulsion of the agricultural lessee by the agricultural lessor to do any work not in any way
connected with farm work;
4. Commission of a crime by the agricultural lessor against the agricultural lessee
5. Voluntary surrender due to circumstances more advantageous to him and his family.
1. To inspect and observe the extent of compliance of their contract and the provision of this
Chapter;
2. To propose a change in the use of the landholding to other agricultural purposes. In case of
disagreement, the same shall be settled by the Court (Now Adjudication Board);
3. To acquire the agricultural lessee, to adopt in his proven farm practices necessary to the
conservation of the land, improvement of its fertility and increase its productivity: That in case
of disagreement as to what proven farm practice the lessee shall adopt, the same shall be
settled by the court (now the DARAB);
4. To mortgage expected rentals.
The lessee may seek relief from the nearest Regional Agrarian Reform Adjudicators (RARAD) or the
Provincial Agrarian Reform Adjudicators (PARAD) to compel the agricultural lessor to comply with this
obligation in case of refusal, neglect or resistance on the part of the lessor.
1. To dispossess the agricultural lessee of his landholding except upon authorization by the
court under Section 36.
2. To require the agricultural lessee to assume, the payment of the taxes on the landholding;
3. To require the agricultural lessee to assume, any part of the rent, to pay to third persons for
the use of the land;
4. To deal with millers or processors without written authorization of the lessee;
5. To discourage, the formation, maintenance or growth of unions or organizations of
agricultural lessees in his landholding.
1. When the landholding is declared by the Department Head to be suited for residential,
commercial, industrial or some other urban purposes;
2. Failure to comply with any of the of the terms and conditions of the contract of lease;
3. Planting of crops or used the landholding for a purpose other than what had been previously
agreed upon;
4. Failure to adopt proven farm practices as determined under paragraph 3 of Section twenty-
nine;
5. When through fault or negligence of the lessee, the land or other substantial permanent
improvement thereon is substantially damaged or destroyed or has reasonably deteriorated;
6. Failure to pay the lease rental when it falls due;
7. Employment of a sub-lessee.
The above causes are grounds for ejectment of an agricultural lessee only after observance of due
process.
Lessee’s Right of Pre-emption and Redemption
In case the agricultural lessor decide to sell the landholding, the agricultural lessee shall have the
preferential right to buy the same under reasonable terms and conditions: each shall be entitled to
said preferential right only to the extent of the area actually cultivated by him. The right of pre-
emption may be exercised within one hundred eighty (180) days from notice in writing, which shall be
served by the owner on all lessees affected and the Department of Agrarian Reform.
He must either tender payment of, or present a certificate from the Land Bank that it shall make
payment pursuant to Sec. 80 of this Code. If the latter refuses to accept such tender or presentment,
he may consign it with the Court.
Any dispute as to reasonableness of the terms and conditions, may be brought by the lessee or by
the Department of Agrarian Reform to the proper Court of Agrarian Relations.
Comments:
The right of pre-emption as distinguished from redemption, is the right to purchase the property from
the agricultural lessor by the lessees which is exercised before it is sold to a third person other than
the lessee.
The lessee may consign the purchase money with the Department of Agrarian Reform.
In case the landholding is sold to a third person without the knowledge of the agricultural lessee, the
latter shall have the right to redeem the same at a reasonable price and consideration: where there
are two or more agricultural lessees, each shall be entitled to said right of redemption only to the
extent of the area actually cultivated by him. The right of redemption under this Section may be
exercised within one hundred and eighty days from notice in writing.
Upon the filing of the petition, the said period o one hundred and eighty days shall cease to run.
The Department of Agrarian Reform shall initiate, while the Land Bank shall finance, said redemption
as in the case of pre-emption.
Right to Self-organization
The farmworkers shall have the right to self-organization and form, join or assist farmworkers’
organizations of their own choosing for the purpose of collective bargaining through representatives
of their own choosing.
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
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.
1. When constructed and operated by the government. Lessees either as individuals or groups
shall allocate not more than 25% of their rental collection to the government.
2. Irrigation systems installed and / or constructed at expense of landowner or agricultural lessor
– acquisition of these irrigation system shall be initiated by the DAR to be financed by the
Land Bank.
1. 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;
2. Average normal harvest for three (3) preceding years.
3. 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.
Whatever balance remaining after crediting as amortization the rental paid, the same may be finances
by the Land Bank in the same ratio and mode of payment provided under Section 80 of the Code.
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.