INSTITUTE OF MARITIME STUDIES ASIAN

Roxas Blvd. cor Arnaiz Ave., Pasay City, 1302 Philippines

HACIENDA LUISITA: ESSENTIAL ELEMENTS IN THE PHILIPPINE AGRARIAN ISSUES

A Research Paper presented to

Prof. Ron Bedia

In the Partial Fulfilment of the Requirements in the subject of Reading

Philippine History

ASIS, Nico Allen S.

ALSOL, Alexander
CASTRO, John Lester F.
FODULLA, John David
Milallos, John Jaimar
RODRIGUEZ, Eduard Marx

September 2019
 TABLE OF CONTENTS

I. CHAPTER 1 INTRODUCTION ------------------------- 1

II. CHAPTER 2 BACKGROUND OF THE STUDY ------------------------- 2

III. CHAPTER 3 COMPARATIVE ANALYSIS ------------------------- 4

a. HISTORY ------------------------- 4
b. CURRENT ISSUES ------------------------- 4
c. ANALYSIS ------------------------- 4

IV. 4 SUMMARY, CONCLUSION AND RECOMMENDATION ------------------- 8

a. SUMMARY -------------------------- 8
b. CONCLUSION -------------------------- 8
c. RECOMMENDATION -------------------------- 8

V. CHAPTER 5 REFERENCES -------------------------- 12

 INTRODUCTION

The Philippines is under a hegemonic control of Neo Feudal System which

Radicalized the agrarian industry of the republic of the Philippines for many
decades of our history the Philippine’s land system is controlled by land lords
which hire many farmers who are working in a 30-70 percentage earnings.
This result in massive exploitation of the agrarian working class which result on
their poverty and hunger.

Neo Feudalism was popular on Central and whole Luzon like Tarlac, The
Hacienda Luisita which is a very large land property was under the poverty of
Aquino and Conjuanco Family for many decades the land area of hacienda was became
an area of transport and agriculture.

Many farmers was fighting for their rights to have a share on the land
are of the hacienda but the contradiction is the Conjuanco and Aquino was
violation their rights to have a land share.

Many farmers has been sacrifice their lives Enableto gain a land share.
This situation only explains the Feudal system. Feudalism was combination of
legal and military customs in medieval Europe that flourished between the 9th and
15th centuries. Broadly defined, it was a way of structuring society around
relationships derived from the holding of land in exchange for service or labor.

For many decades until now we are under a neo semi Feudal System which
starves and exploit the people’s working class and result in the poverty of the
poverty of the country’s agrarian working class.

In 1950 and 1970’s the system of land grabbing was very famous which
describes those farmers who didn’t paid their debts will give their land to the
landlords in which they are paying their debts, during this era the agrarian
socialism became popular to the farmers and agrarian working class this result in
many revolutionary acts to eliminate Feudal system.

Until to this day the land grabbing and exploitation was still an
infestative system that ruins our agrarian system.
 CHAPTER 2
BACKGROUND OF THE STUDY

Through Proclamation 131 and Executive Order 229 outlined by the late President
Corazon Cojuangco Aquino, Comprehensive Agrarian Reform Law, a land reform program
that aims to distribute the agricultural lands to help the beneficiaries survive
as small independent farmers regardless of the tenurial arrangement, was passed
into a Law on July 22, 1987 (Official Gazette, 1987).

This program also offered an option of the so-called “stock transfer scheme”
to landlords wherein, instead of subdividing haciendas and distributing small lots
to tenants or small farmers, shared of stocks are issued to beneficiaries through
a stock distribution plan which arose the concept of Stock Distribution Option, a
corporative scheme in Hacienda Luisita. Under SDO implementation, farm workers were
told that owning shares of stock in the HLI is better than actual land distribution.

To operationalize the Stock Distribution Option in Hacienda Luisita, Tarlac

Development Corporation (TADECO) established Hacienda Luisita, Incorporated (HLI)
– a corporation built by the Cojuangco family to manage a sugar plantation with
6,443 hectares. The farmer workers became “co-owners” of the HLI.
Aside from stock distribution, there are other stated benefits for the farm
workers under the SDO scheme: 3% production share and residential lots. However,
the production share, is based on the number of mandays; and not all farm workers
could avail of the residential lots. Other benefits such as free hospitalization
and interest-free loans are terms under the Collective Bargaining Agreement (CBA)
between HLI management and the United Luisita Workers Union (ULWU) and not benefits
under the SDO.

They were made to believe that they are “co-owners” of the corporation when
in fact, they have to sweat it out to be able to claim their benefits. Majority of
the farm workers were also forced to vote YES to SDO in a referendum in 1989 for
fear that they will be thrown out of their jobs. Moreover, many of them were made
to sign blank papers in exchange for release of loans or other benefits.
SDO is supposedly made for the betterment of life of the farmers through
stable jobs, improved benefits, higher incomes, and shares from company profits,
but what they got was the opposite as more than 1,000 farm workers lost their jobs
and as the corporation reduced their workdays to only one day a week and their net
pay to P9.50 a day.
 According to Kilusang Magbubukid ng Pilipinas, the shares and benefits under
the SDO are delimited by diminishing mandays, as the distribution of farmers’ shares
and computation for stocks are based on the number of their workdays. A farm worker
is guaranteed a maximum of 80 mandays a year, or 1-2 mandays a week, his shares in
stock could not go beyond P118 million/30 years/5,339 farm workers or P737/year
while his production shares were not beyond P1,120.
In addition, as stated in the article of Bulatlat, the farm workers were
supposed to own P590, 553, 220 – the three (3) percent of the total shares of stocks
of HLI and a value of 4,915 hectares covered by SDO. However, only about 4,415
hectares remain as cultivable while the remaining 500 hectares were sold to
corporations that were also owned by the Cojuangcos in 1995. The family earned
billions of pesos from the land supposedly owned by the farm workers.i

i
https://www.bulatlat.com/news/5-14/5-14-sdo.htm

iVol
V, No. 14 may 15-21, 2005 QUEZON CITY, PHILIPPINES
Bulatlat by ABNER BALOLOS
http://kilusangmagbubukid.weebly.com/resources/facts-about-hacienda-luisita-incorporated-
and-the-stock-distribution-option

07/29/2010 San Miguel, Tarlac City

By ALYANSA NG MGA MANGGAGAWANG BUKID SA ASYENDA LUISITA
 Chapter 3
Comparative analysis

A. HISTORY

During Pres. Ramon Magsaysay, 6,453 hectares Hacienda Luisita was

owned by Lopez family in Iloilo and sold to Jose Cojuangco Sr.

1988
- The Comprehensive Agrarian Reform Program (CARP). The aim of it is to
distribute this to the farmer’s redistribution of public and private
agricultural lands to formers and farmworkers who are landless correspect
of tenurial arrangement (Mia, I.B 2016). So that there's many hectares to
be distributed in the Philippines. According to Mia, I.B (2016) the
farmers share of 4, 916 hectares valued 197 million only consisted 33% of
total shares. The Cojuangco's shares worth 394 million consisted 67%. In
this case the farmers became poorer and suffered because of the dividing
the part, also some of the farmers lost their land.

2003
- After 15 years the farmers petitioned to (DAR) Department of Agriculture
Reform to revoke (500), claiming that it only made them poorer. Then the
owner of hacienda Luisita fought back against the farmers. The case was
file to Supreme Court.

2004
- In this year a massacre happen when 2 farmworkers and 2 children were
killed in a standoff between farmers and PNP. It is one of the
controversial in the Philippines and always in news.

2008-2009
- CARP was expired and 1.2 out of 10.3 million hectares were distribute.
There's a lot of land was not distributed to the landless farmworkers but
when Pres. Arroyo the CARPER was extended to 5 years to deadline for the
land distribution.

2012
- According to MIA, B.I (2016) only 4,099 out of 6,453 hectares has been
distributed some of the land were already used for building Subic-Clark-
Tarlac Expressway, malls, factories and creeks. It is showed to media/news
that it was already used. Additionally, the other lands are reserved for
commercializarion projects.

2013
- Ka Pong and other farmers saying that the tricycle fee is too high
because, from their farm they spend 300 pesos back in fort. This created
confusion among the farmers because the allocation of farm lots were
reshuffled and mixed up. In this case there is no progress because it end it up
in nothing. The farmers did not know why the allocation of their land was
mixed.

Marcos Government had filed to give back or return the land of

Hacienda Luisita from Conjuangco – Aquinos to the Farmer of the
Philippines, as stated in the condition of the loan the Conjuangco
obtained from the Government Service Insurance Central (GSIC) and the
Control Bank. Used the loan to purchase the sugar mill and the land of
Hacienda Luisita.

The Regional Trial Court (RTC) ordered the Conjuangco – Aquinos to

fulfill the condition of the loan and to give back the land to the farmer.
They appealed the decision however, to the court of Appeals, when Cory
administration and pending the appeal her administration ordered the
withdrawal of the case from the Court of Appeals, According to Pahilga.1

B. CURRENT ISSUES

 Unfair dealing between tycoons and farmers.

Jamora is one of the farmers that was given a land ownership under
CARP, but they are still protesting regarding the profit dividends to
them. The dean was disadvantage to the farmers because they only received
10,000 pesos a year or 833 a month in profit dividends (Rivas, R 2018).
How does the farmers feed their families if each of them only received
833 pesos a month, how can that handle their profit shares?

Also according to Jamora he said Cojuangco tell them that their

children’s' education would be take care of, but he said that it did not
happen. In this situation the farmers are hoping that their children’s
education will be supported, how does the farmer's children help to improve
their crops using their knowledge if they do not go to school? Youth is the

11Ian Benedict Mia ( July 12, 2016)

https://thelasallian.com/2016/07/12/28-years-of-agrarian-reform-in-hacienda-
luisita/
 hope of the nation. They are still hoping that Cojuangco will fulfill his
words to the farmers.2

 Agricultural is losing
Our country is now prioritizing the office work, although our country is
aiming to get high our economy but being overseas Filipino worker. Some
of fellow Filipinos decided to be an OFW to support their families and to
be able to afford their need and wants. OFWs suffered and sacrifice their
lives in other country to serve other people. According to De Guzman,
S.S, even if the Philippines is primarily an agricultural country. In the
sixties we were ahead in Asia. Students from different countries came
here to study agriculture and its technology. Look what our country is
during sixties? Different people come to our country just to have
knowledge about farming. If our country focused on agriculture, our
economy goes up and we can produce different crops from our country.

 7 pesos of palay
As the price of 7 pesos per kilo of unhusked rice, the Filipino farmers
will lose their profit, the farmers may loss their investment to their
crops which is palay. The farmers blaming that the 7 peso bill was caused
by Rice Traffication Law that opened the gates for imported rice to flood
the local industry (Limos, M.A 2019). The government should entertain our
own product to be able to help our formers. It may not affect the costing
of unhusked rice and maybe our crops may export to different countries if
the government supports agriculture in the Philippines.3

 According to Sara Soliven De Guzman 2018, “Agriculture is dying. This is

a sad reality of the country. Agricultural land being used in making
industrial areas, shopping malls and subdivisions building. Farmers are
getting old but their children have shifted into the career like OFW. The
agriculture industry has not progressed in ages. Many of our agricultural
schools are producing office-oriented workers who would much rather do
paper work than help improve the agricultural sector of the country. Not
to mention the many horror stories of corruption at the Department of
Agriculture”.4

It is so hard to see the reality here in the Philippines that we need to

focus to our Building infrastructure rather than our agricultural forms. That we
are an Agricultural and also an Archipelago country.

2
https://www.rappler.com/nation/206027-comprehensive-agrarian-reform-program-
implementation-30-years
33 Mario Alvaro Limos

https://www.esquiremag.ph/politics/news/rice-law-starving-farmers-a00293-20190905
44 Sara Soliven De Guzman (Philippine Star) – June 18 2018 – 12:00 A.M

https://www.philstar.com/opinion/2018/06/18/1825542/agriculture-dying-
philippines/amp/
 C. ANALYSIS

During hacienda Luisita's time there's so many farmers suffered because of

the implementation of rules. Different presidents under go to this, but any of
them didn't fix the problem/issues of the farmers who only wanted have their own
land and produce crops which is their only occupation to support their families.
The Cojuangco's owns the Hacienda Luisita, the farmers work for them but the
dividend of the part was unfair.

Some of the farmers loss their land because they not able to pay their
debts. The farmers became poorer and they're family was starting because they
don't have income.

Now in 21st century the Hacienda Luisita's farmers are still begging for
the proper profit dividend to them because they only received 10,000 pesos
annually and it is not enough for them to buy their wants and needs in their
everyday life. The farmers only received 833 pesos per month.

Cojuangco's also promised that they will support the education of the
children of the farmers but they didn't fulfill it. The beneficiary of the
farmers are still hopeless until now. Our country is prioritising the office
works/paperworks and they don't give attention to agriculture. Some of Filipinos
decided to be an OFW just to support their own family and provide their wants and
needs.

If our country continues the progress on focusing in agriculture, maybe

Philippines is wealthier than other countries. Philippines is number one in Asia
because people from other countries go in the Philippines just to have knowledge
and know the technology how to use it in farming. It is much better if our
government give more attention to our agricultural just like before. As the 7
peso cost per kilo was implemented, our fellow farmers will suffer because they
will lose their investment to produce their crops.

Their profit was small compared to rice traders, the 7 peso bill may not
help our farmers it will make them poorer. Our government should patrionize our
own product and support the farmers to improve their products so we're not
importing products but we're the one who export products to different countries.
 CHAPTER 4
SUMMARY, CONCLUSION AND RECOMMENDATION

A. SUMMARY

The purpose of this study to provide analysis of the current conditions of

the farmers in the agrarian in Philippines that has many issues of the poverty
among Filipino farmers who are considered the country top agricultural products
producers have been victims of various forms injustice by the society the most
that they could do is to struggle for recognition of their privaleges as
beneficiaries of agrarain

The agrarian beneficiaries has not achieving the overall development for
distribution of land to the farmers. Because the titles of the land was hidden by
department of agrarian and the landlords was able to delaying tactics to be
occupy their land by the farmers.received threated by the landlords if they don't
to sell their property them going to kill them.

However our local governments they didn't support our farmers for
agriculture program for the good of our country's agriculture and to help our
farmersThe purpose of this study to provide analysis of the current conditions of
the farmers in the agrarian in Philippines that has many issues of the poverty
among Filipino farmers who are considered the country top agricultural products
producers have been victims of various forms injustice by the society the most
that they could do is to struggle for recognition of their preveleges as
beneficiaries of agrarain

The agrarian beneficiaries has not achieving the overall development for
distribution of land to the farmers. Because the titles of the land was hidden by
department of agrarian and the landlords was able to delaying tactics to be
occupy their land by the farmers.received threated by the landlords if they don't
to sell their property them going to kill them.

However our local governments they didn't support our farmers foR
agriculture program for the good of our country's agriculture and to help our
farmers
It will lessen the hardship of Filipino farmers if the government will give them
attention and

Provide them a land where they can freely farm. The gov. should implement a
law wherein it tells the rights of every farmer to have their own farm land, it
will have a huge benefits for them, especially when the gov. prioritize their
farm
 B. CONCLUSIONS

The Hacienda farmers and their families are not ordinary beneficiaries of
land reform. They hold the moral, Historical and legal rights of the land that
the Conjuangco – Aquino family has steadfastly denied them in for several
decades. The request for free land distribution must be given.

In order to have a fair and equitable distribution of land, state entities

must seriously follow farm workers who seek collective ownership of land.

The DAR land distribution scheme in Hacienda Luisita is the complete

opposite of “Successful land reform”. It is a Shame, not an inch of land was
physically distributed after all the grand announcement that the Government that
suffering of the farmers is ended. The DAR has committed apparent abuse of
discretion in most cases, if not all of these actual measures have been
abolished, leaving eligible.

Aquino and Conjuangco family Sabotaged land reform, the Massacre issue is
the most cruel impunity.

The Government’s Policy of institutionalized corruption and state error and

repression has made real land reform a far cry for thousands of Hacienda Luisita
farmers and millions of other farmers in whole country.

C. RECOMMENDATIONS

All concerned affected Individuals should support the demands of farm workers
for free land distribution and collective ownership of land to today’s workers.

The SC should act immediately on the latest moves of farmers questioning the
anomalies and irregularities in DAR land distribution activities.

The Tadeco, LRC and other representatives of the Conjuangco – Aquino clan
should withdraw all private armed personnel and dispose of its outposts pending
resolution of disputes over its claim to broad agricultural land excluded of DAR
from distribution to beneficiaries. Tadeco personnel under the orders of the
Conjuangco – Aquino family, should be held responsible for abuse, gave threats,
property damage, forced eviction and the assassination of Dennis dela cruz.

All concern people must support the continuous Agrarian struggle of Hacienda
Luisita farmers for sincere and honest land reform.

Beneficiaries of land reform should not be treated like enemy of the state.
The AFP must remove all military and para-military forces deployed in Hacienda
Luisita. State forces should not be utilized in favor of the land owner interests
of the Conjuangco – Aquino Family.
 CHAPTER 5
REFERENCES

Online Resources

Abner B. (2005) Vol V, No. 14 may 15-21, 2005 QUEZON CITY, PHILIPPINES
Retrieved from https://www.bulatlat.com/news/5-14/5-14-sdo.htm

ALYANSA NG MGA MANGGAGAWANG BUKID SA ASYENDA LUISITA 07/29/2010 San Miguel,

Tarlac City, Retrieved from http://kilusangmagbubukid.weebly.com/resources/facts-
about-hacienda-luisita-incorporated-and-the-stock-distribution-option

Ian Benedict Mia July 12, 2016, Retrieved from

https://thelasallian.com/2016/07/12/28-years-of-agrarian-reform-in-hacienda-
luisita/

Rappler, Retrieved from https://www.rappler.com/nation/206027-comprehensive-

agrarian-reform-program-implementation-30-years

Mario Alvaro Limos, Retrieved from

https://www.esquiremag.ph/politics/news/rice-law-starving-farmers-a00293-20190905

Sara Soliven De Guzman (Philippine Star) – June 18 2018 – 12:00 A.M, Retrieved
from
https://www.philstar.com/opinion/2018/06/18/1825542/agriculture-dying-
philippines/amp/