Term Paper for Economics

I. DEPARTMENT OF AGRICULTURE

A. HISTORY

TIMELINE:

After the proclamation of the Philippine

Independence on June 12, 1898, President

Emilio Aguinaldo formed his government

with the Department of Agriculture and

Manufacturing as one of the first agencies.

Headed by three directors, Jose

Alejandrino (1898-1899), Graciano

Gonzaga and Leon Ma. Guerrero, both during the latter part of 1899.

 1901 (American regime)- it was renamed Insular Bureau of Agriculture under the

Department of Interior and headed by Frank Lamson-Scribner (1902), WC

Welborn (1904), and Dr. George Nesom (1907).

 1910, the Bureau was under the supervision of the Department of Public

Instruction, headed by Frederick Taylor (1911-1914) and Harry Edwards (1914-

1916).After Edwards, the helm of the bureau was again given to a

Filipino, Adriano Hernandez who himself was a practicing farmer.

 1917, the Department of Agriculture and Natural Resources (DANR) took over

the functions of the bureau and was led by Secretaries Galicano Apacible (1917-

1921), Rafael Corpuz (1921-1923), and Silvestre Apostol (1923-1928).

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 1928-1932 - DANR became the Department of Agriculture and Commerce. The

Bureau of Agriculture was split into two bureaus, the Plant Industry and the

Animal Industry under the administration of Secretary Rafael Alunan, Sr. (1928-

1932),

 1933-1934- The Fish and Game Administration and the Fiber Inspection Service

were established under the of Secretary Vicente Singson Encarnacion.

 1934-1938- Eulogio Rodriguez, Sr. was appointed Secretary and was replaced

by Secretary Benigno S. Aquino, Sr. until 1941. During Aquino’s term, the Fish

and Game Administration was restructured and the Division of Soil Survey was

created.

 1941- Upon the outbreak of the Pacific War, Pres. Quezon re-

appointed Secretary Rafael Alunan, Sr. (1941-1942) as Secretary of Agriculture

and Commerce.

 July 4, 1945- After the country’s Liberation from Japanese Occupation on July

4, 1945, the government rebuilt the country and reconstituted the agencies

including the Department of Agriculture and Commerce (DAC). With the

resumption of the Commonwealth Government, President Sergio Osmeña

reappointed Vicente Singson Encarnacion as Secretary of the DAC. Thereafter,

Mariano Garchitorena (1946-1948) was appointed by President Manuel Roxas.

 1947- the Department was renamed as the Department of Agriculture and

Natural Resources (DANR).

 1948- In September President Elpidio Quirino appointed Placido L.

Mapa as DANR Secretary.

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 1950- Vice President Fernando Lopez served concurrently as the DANR chief.

During his term, the Bureau of Agricultural Extension (now Agricultural Training

Institute) was established, along with the organization of the 4-H Clubs and Rural

Improvement Clubs (RICs) nationwide.

 1953- President Quirino reappointed Placido L. Mapa as Secretary. The Rice

Economic Board was set up, making the rice industry the first commodity to

benefit from an integrated national planning.

 1953-55 - Salvador Araneta was appointed as Secretary and three major

agencies under the DANR were created, namely:

1. Agricultural Tenancy Commission- precursor of the Department of

Agrarian Reform

2. Philippine Tobacco Administration- forerunner of the National Tobacco

Administration

3. Philippine Coconut Administration (now known as Philippine Coconut

Authority)

 1955-60- Juan G. Rodriguez is the DANR chief, whose term was highlighted by

several milestones: the Philippines became a member of the United Nations

Food and Agriculture Organization (FAO); launch of the National Rice and Corn

Production Program; and creation of the Rice and Corn Coordinating Council,

forerunner of the National Agricultural and Fishery Council (NAFC).

 September 14, 1959- the DANR offices moved from Manila (at Agrifina Circle)

to Quezon City (along Elliptical Road , Diliman).

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 1961- Cesar Fortich became the DANR chief, the Abaca Development Board

(forerunner of the Fiber Development Authority) was created. Jose Locsin, then

concurrent Chairman of the National Economic Council, succeeded Fortich from

September to December 1961.

 1962- President Diosdado Macapagal appointed Benjamin M. Gozon as

Secretary. During his term, two agencies were created:

1. the Bureau of Agricultural Economics (forerunner of the Bureau of

Agricultural Statistics);

2. the National Rice and Corn Administration or RCA (now known as the

National Food Authority).

 1963- President Macapagal appointed RCA Administrator Jose Y. Feliciano as

concurrent Secretary of Agriculture. Feliciano launched the Agricultural Marketing

News Service that provided regularly farmers and consumers prices of selected

commodities.

 1965- President Ferdinand Marcos named Vice Pres. Lopez as Secretary,

serving for the second time in a concurrent capacity. Considered as the “rice

czar,” he successfully implemented a production program that enabled the

Philippines to export rice for the first time in 1968.

 May 1974 (early years of Martial Law) -President Marcos reorganized and split

the DANR into two agencies: Department of Agriculture (DA); and Department of

Natural Resources (DNR). Arturo R. Tanco, Jr. was named as DA Secretary.

 1978 - government departments were transformed into ministries.

With Tanco remaining at the helm of the Ministry of Agriculture, the Masagana

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99 rice production program was launched which made the country self-sufficient

and a rice exporter. A similar program on corn also made the country self-

sufficient in white corn. In June 1978, the MA established 12 regional offices

nationwide.

 1984- the agency was renamed Ministry of Agriculture and Food (MAF). The

Bureau of Fisheries and Aquatic Resources was transferred from the Ministry of

Natural Resources.Under a parliamentary government, Assemblyman Salvador

H. Escudero III — former Director of the Bureau of Animal Industry and MAF

Deputy Minister — served as MAF Minister. Escudero implemented the

Intensive Rice Production Program (IRPP), an import-substitution program,

expanded government’s animal dispersal program, particularly the Bakahang

Barangay (cattle raising the at village level) and Pagbababuyan (swine raising).

 1986- Ramon V. Mitra, Jr. as MAF Minister who implemented policy and

institutional reforms that freed the agriculture markets, enabling farmers to enjoy

higher farmgate prices.

 1987- MAF Deputy Minister Carlos G. Dominguez was appointed to replace

Agriculture Minister Mitra who opted to run for Representative of the second

district of Palawan. On January 30, 1987, President Aquino signed and issued

Executive Order No. 116, which renamed and reorganized the MAF into

the Department of Agriculture. Under DA, Dominguez introduced reforms in the

rural credit system and established the Comprehensive Agricultural Loan Fund

(CALF).

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 1988 - he also launched the Livelihood Enhancement for Agricultural

Development (LEAD) program to speed up farmers’ organizations access to

financing, management expertise, and marketing. Agriculture and Fishery

Councils (AFCs) were set up at the sectoral, regional, provincial and municipal

levels to provide inputs on major programs and policy decisions and help plan

and monitor DA projects. Senen C. Bacani, appointed in January

1990, implemented the Rice Action Program (RAP) and Corn Production

Enhancement Program (CPEP).

 1992- Roberto S. Sebastian as DA chief who introduced the Key Production

Approach (KPA) which became the basis of the Medium-Term Agricultural

Development Plan (MTADP).

 1996, President Ramos appointed Dr. Salvador H. Escudero III as DA Secretary,

for the second time. During his two-year tenure, he launched the Gintong

Ani food production and security program.

 July 1998, President Joseph Ejercito Estrada designated William D. Dar as

Acting DA Secretary who introduced the Estrada administration’s 10-point

agenda in agriculture and fisheries under the Agrikulturang Makamasa program.

 March 1999, President Estrada named former Senate President Edgardo J.

Angara as DA Secretary who authored the Agriculture and Fisheries

Modernization Act of 1998 or AFMA (Republic Act No. 8435). He put into motion

the law’s vision of modernizing the country’s agriculture and fisheries sector.

 January 2001- Domingo F. Panganiban continued the implementation of AFMA

as the government’s comprehensive framework and platform for rural

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development when he assumed office. A month later, he was replaced

by Leonardo Q. Montemayor who implemented the AFMA with special emphasis

on its social equity aspect. He launched the Ginintuang Masaganang Ani

Countrywide Assistance for Rural Employment and Services (GMA-CARES).

 2002- Secretary Luis P. Lorenzo Jr., took the helm of the Department in and

spearheaded the launching of the Roll-On, Roll-Off or RORO transport program.

The hybridization programs of the Department were intensified and interventions

were focused on the Mindanao regions.

 August 23, 2004- Secretary Arthur C. Yap was appointed. During his first term,

he unveiled the GMA Goal 1 (develop two million hectares of new lands for

agribusiness to contribute two million to the 10 million jobs targeted by 2010)

and GMA Goal 2 (make food plentiful while keeping the price of “wage goods” at

low prices).

 2006- When Secretary Yap returned to the DA in October, 2006, he implemented

various projects and policies towards the attainment of food security and self-

sufficiency. Upon Secretary Yap’s decision to run as Representative of the 3rd

District of Bohol, Secretary Bernie Fondevilla took over in March 2010.

 June 30, 2010- President Benigno S. Aquino III appointed two-term

congressman of Quezon and civil engineer by profession Proceso J. Alcala as

Secretary. One of the principal authors of Republic Act 10068, or the Organic

Agriculture Act of 2010, he aimed to achieve self sufficiency in rice during his

term.

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 2016- Secretary Emmanuel F. Piñol has lined up his agricultural agenda in

consultation with President Rodrigo R. Duterte. Both of them agreed that the

country’s agriculture and fisheries program must go back to the basics which are

to (1) produce food and (2) address poverty. Thus, agriculture efforts today are

focused on the production and trade of two commodity groups: (1) Staple Food

Commodities to ensure food sufficiency and security and (2) High Value Crops to

generate jobs and foreign earnings.”

-Department of agriculture

B. MANDATE

The Department is the government agency responsible for the promotion of

agricultural development by providing the policy framework, public investments, and

support services needed for domestic and export-oriented business enterprises.

In the fulfillment of this mandate, it shall be the primary concern of the

Department to improve farm income and generate work opportunities for farmers,

fishermen and other rural workers. It shall encourage people’s participation in

agricultural development through sectoral representation in agricultural policy-making

bodies so that the policies, plans and programs of the Department are formulated and

executed to satisfy their needs.

It shall also use a bottom-up self-reliant farm system approach that will

emphasize social justice, equity, productivity and sustainability in the use of

agricultural resources.

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C. VISION AND MISSION

 VISION

The Department’s vision is a competitive, sustainable, and technology-

based agriculture and fishery sector, driven by productive and progressive

farmers and fisherfolk, supported by efficient value chains and well integrated in

the domestic and international markets contributing to inclusive growth and

poverty reduction.

 MISSION

To help and empower the farming and fishing communities and the

private sector to produce enough, accessible and affordable food for every

Filipino and a decent income for all.

II.CARP AND ITS PROVISIONS

A. The Comprehensive Agrarian Reform Program (CARP)

According to REPUBLIC ACT NO.

6657, CARP or the Comprehensive

Agrarian Reform Program, is the

redistribution of public and private

agricultural lands to farmers and

farmworkers who are landless,

irrespective of tenurial arrangement. CARP’s vision is to have an equitable land

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ownership with empowered agrarian reform beneficiaries who can effectively manage

their economic and social development to have a better quality of life.

One of the major programs of CARP is Land Tenure Improvement, which seeks

to hasten distribution of lands to landless farmers. Similarly, the Department offers

Support Services to the beneficiaries such as infrastructure facilities, marketing

assistance program, credit assistance program, and technical support programs.

Furthermore, the department seeks to facilitate, resolve cases and deliver Agrarian

Justice.

The legal basis for CARP is the Republic Act No. 6657 otherwise known as

Comprehensive Agrarian Reform Law (CARL) signed by President Corazon C. Aquino

on June 10, 1988. It is an act which aims to promote social justice and

industrialization, providing the mechanism for its implementation, and for other

purposes.

CHAPTER XV GENERAL PROVISIONS

SECTION 65. Conversion of Lands

After the lapse of five (5) years from its award, when the land ceases to be

economically feasible and sound for agricultural purposes, or the locality has become

urbanized and the land will have a greater economic value for residential, commercial or

industrial purposes, the DAR, upon application of the beneficiary or the landowner, with

due notice to the affected parties, and subject to existing laws, may authorize the

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reclassification or conversion of the land and its disposition: Provided, That the

beneficiary shall have fully paid his obligation.

SECTION 66. Exemptions from Taxes and Fees of Land Transfers.

Transactions under this Act involving a transfer of ownership, whether from

natural or juridical persons, shall be exempted from taxes arising from capital gains.

These transactions shall also be exempted from the payment of registration fees, and

all other taxes and fees for the conveyance or transfer thereof; Provided, That all

arrearages in real property taxes, without penalty or interest, shall be deductible from

the compensation to which the owner may be entitled.

SECTION 67. Free Registration of Patents and Titles.

All Registers of Deeds are hereby directed to register, free from payment of all

fees and other charges, patents, titles and documents required for the implementation

of the CARP.

SECTION 68. Immunity of Government Agencies from Undue Interference.

No injunction, restraining order, prohibition or mandamus shall be issued by the

lower courts against the Department of Agrarian Reform (DAR), the Department of

Agriculture (DA), the Department of Environment and Natural Resources (DENR), and

the Department of Justice (DOJ) in their implementation of the program.

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SECTION 69. Assistance of Other Government Entities.

The PARC, in the exercise of its functions, is hereby authorized to call upon the

assistance and support of other government agencies, bureaus and offices, including

governmentowned or -controlled corporations.

SECTION 70. Disposition of Private Agricultural Lands

The sale or disposition of agricultural lands retained by a landowner as a

consequence of Section 6 hereof shall be valid as long as the total landholdings that

shall be owned by the transferee thereof inclusive of the land to be acquired shall not

exceed the landholding ceilings provided for in this Act. Any sale or disposition of

agricultural lands after the effectivity of this Act found to be contrary to the provisions

hereof shall be null and void. Transferees of agricultural lands shall furnish the

appropriate Register of Deeds and the BARC an affidavit attesting that his total

landholdings as a result of the said acquisition do not exceed the landholding ceiling.

The Register of Deeds shall not register the transfer of any agricultural land without the

submission of this sworn statement together with proof of service of a copy thereof to

the BARC.

SECTION 71. Bank Mortgages.

Banks and other financial institutions allowed by law to hold mortgage rights or

security interests in agricultural lands to secure loans and other obligations of

borrowers, may acquire title to these mortgaged properties, regardless of area, subject

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to existing laws on compulsory transfer of foreclosed assets and acquisition as

prescribed under Section 13 of this Act. Acd

SECTION 72. Lease, Management, Grower or Service Contracts, Mortgages and

Other Claims.

Lands covered by this Act under lease, management, grower or service

contracts, and the like shall be disposed of as follows:

(a) Lease, management, grower or service contracts covering private lands may

continue under their original terms and conditions until the expiration of the same

even if such land has, in the meantime, been transferred to qualified beneficiaries.

(b) Mortgages and other claims registered with the Register of Deeds shall be

assumed by the government up to an amount equivalent to the landowner's

compensation value as provided in this Act.

SECTION 73. Prohibited Acts and Omissions. —

The following are prohibited:

(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.

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(c) The conversion by any landowner of his agricultural land into any

nonagricultural use with intent to avoid the application of this Act to his

landholdings and to dispossess his tenant farmers of the land tilled by them.

(d) The willful prevention or obstruction by any person, association or entity of the

implementation of the CARP.

(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.

SECTION 74. Penalties.

Any person who knowingly or willfully violates the provisions of this Act shall be

punished by imprisonment of not less than one (1) month to not more than three (3)

years or a fine of not less than one thousand pesos (P1,000.00) and not more than

fifteen thousand pesos (P15,000.00), or both, at the discretion of the court. If the

offender is a corporation or association, the officer responsible therefor shall be

criminally liable.

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SECTION 75. Suppletory Application of Existing Legislation.

The provisions of Republic Act No. 3844 as amended, Presidential Decree Nos.

27 and 266 as amended, Executive Order Nos. 228 and 229, both Series of 1987; and

other laws not inconsistent with this Act shall have suppletory effect.

SECTION 76. Repealing Clause.

Section 35 of Republic Act No. 3834, Presidential Decree No. 316, the last two

paragraphs of Section 12 of Presidential Decree No. 946, Presidential Decree No. 1038,

and all other laws, decrees executive orders, rules and regulations, issuances or parts

thereof inconsistent with this Act are hereby repealed or amended accordingly. Cdt

SECTION 77. Separability Clause.

If, for any reason, any section or provision of this Act is declared null and void, no

other section, provision, or part thereof shall be affected and the same shall remain in

full force and effect.

SECTION 78. Effectivity Clause.

This Act shall take effect immediately after publication in at least two (2) national

newspapers of general circulation.

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B. HISTORY

Under the administration of former president

Corazon “Cory” Aquino, the Philippine Congress

enacted the Comprehensive Agrarian Reform

Program (CARP) in 1988 which mandates the

coverage of all private and public farmland regardless

of tenurial arrangements or productivity conditions for

the distribution beyond five hectares to landless

farmers, farmworkers and tenants.

Vague procedures for the identification of beneficiaries in commercial and corporate

farms, the prioritization of the distribution of public land over private landholdings as well

as unclear guidelines for land use conversions. Anti-peasant and pro-landlord

provisions were reflected in the Stock Distribution Option (SDO), leaseback

agreements, Voluntary Land Transfer (VLT), since several loopholes allowed large

landowners to evade land redistribution.

The Stock Distribution Option (SDO) allows corporate landowners the option to give

farmers partial ownership of a company in the form of stocks shares in lieu of land

distribution. Opted by Hacienda Luisita Inc., Instead of acquiring actual land to till, the

farm workers of Hacienda Luisita received shares which were computed based on the

number of work days.

Budget constraints, the lack of an accurate land registration system and extensive

corruption within the Department of Agrarian Reform (DAR) are the major reasons for

the delayed and slow implementation of CARP.

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The Congress passed the CARPER Act or CARP extensions with reforms giving

CARP five more years to be completed in August 7, 2009. CARPER brought about

significant changes in the land reform process, such as:

 the elimination of the SDO or VLT option, the recognition of women as

beneficiaries,

 the prioritization of the distribution of large landholdings (between 25 and 50

hectares),

 the indefeasibility of awarded beneficiary lands

 the provision of PHP 150 billion for land acquisition and distribution (LAD)

whereby 40 percent of the budget should be allocated for support services.

It incorporated a “killer amendment” that allowed landowners to determine who

would be preferred as beneficiary. This provision affected seasonal farm workers. But

the program ended in June 2014 and about one million hectares of land had yet to be

distributed including the most difficult and contentious landholdings.

After 27 years of implementation, the completion of agrarian reform is still nowhere

in sight. Some landlord resistance opposing the land distribution process saw farmers

facing harassments, intimidations and evictions with some even getting killed.

The Hacienda Matias in Bondoc Peninsula is a prime example of the suffering of

farmer beneficiaries under aggressive landlord resistance. Only in July, 2015 was DAR

able – after several attempts – to enter the land, to provide necessary protection to the

farmer beneficiaries and to resume the land distribution process.

DAR’s data show that the official LAD balance – as of January 2014 – remained at

790,671 hectares, covering a total of 80,867 landholdings of which 26,571 landholdings

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(206,536 hectares) have no Notices of Coverage (NOCs). The completion of CARPER

would possibly take another eight years.

An integral component of CARP is the provision of support services. To

successfully complete CARP, farmer beneficiaries need to be able to cultivate and till

their awarded land. As of December 2013, only 44 percent of all farmer beneficiaries

under the agrarian reform program had access to support services, such as farming

implements, seeds and access to social credit.

C. DIFFERENCE OF CARP & CARPER

RA 6657, THE CARP LAW

Is the redistribution of public and private agricultural lands to farmers and

farmworkers who are landless, irrespective of tenurial arrangement.

One of the major programs of CARP is Land Tenure Improvement, which seeks to

hasten distribution of lands to landless farmers. It is an act which aims to promote

social justice and industrialization, providing the mechanism for its implementation,

and for other purposes.

RA 9700 or the CARPER law

Is an extension of the budget for CARP especially the Land Acquisition and

Distribution (LAD)program for five years starting July 1, 2009 and the necessary reforms

to complete the acquisition and distribution of the remaining One Million Hectares of

private agricultural lands to landless farmers

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Conversion of agricultural and to non-agricultural uses and food security is one of

its major insights. At present, only the DAR has the mechanism to regulate the

conversion of agricultural lands to non-agricultural uses because all agricultural lands

are covered under CARP. Most of landowners convert their land to non-agricultural

uses to evade CARP coverage.

 It strengthens the ban on any conversion of irrigated and irrigable lands

and mandates the National Irrigation Administration to identify these

 Making the language of all the provisions of the law gender-neutral and

the policy statement declares the right of rural women

D. THE STATE OF AGRARIAN REFORM UNDER PRESIDENT BENIGNO AQUINO III’S

GOVERNMENT

According to the report Agrarian

reform during the Aquino

Administration is proceeding apace

despite the huge challenges facing

the program. 219,069 hectares of

land were acquired and established

throughout the country which is by no

means the lowest accomplishment in

the history of the Comprehensive Agrarian Reform Program (CARP).

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The lowest recorded was 59,495 hectares of

land distributed in 2009 because of the

uncertainties brought about by the transition to

implementing Republic Act No. 9700. In 2011, the

Department of Agrarian Reform (DAR) has

distributed 111,889 hectares of land nationwide

and 107,180 hectares distributed in 2010. Thus,

111,889 hectares were actually distributed to

63,755 agrarian reform beneficiaries.

E. LAND THAT CAN BE ACQUIRED UNDER CARP

CHAPTERII Coverage

SECTION 4. Scope. — The Comprehensive Agrarian Reform Law of 1989 shall cover,

regardless of tenurial arrangement and commodity produced, all public and private

agricultural lands, as provided in Proclamation No. 131 and Executive Order No. 229,

including other lands of the public domain suitable for agriculture.

More specifically the following lands are covered by the Comprehensive Agrarian

Reform Program:

(a) All alienable and disposable lands of the public domain devoted to or suitable for

agriculture. No reclassification of forest or mineral lands to agricultural lands shall

be undertaken after the approval of this Act until Congress, taking into account

ecological, developmental and equity considerations, shall have determined by law,

the specific limits of the public domain.

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(b) All lands of the public domain in excess of the specific limits as determined by

Congress in the preceding paragraph;

(c) All other lands owned by the Government devoted to or suitable for agriculture;

and

(d) All private lands devoted to or suitable for agriculture regardless of

the agricultural products raised or that can be raised thereon.

E. LANDS NOT COVERED BY CARP

SECTION 10. Exemptions and Exclusions. —Lands actually, directly and exclusively

used and found to be necessary for parks, wildlife, forest reserves, reforestation, fish

sanctuaries and breeding grounds, watersheds, and mangroves, national defense,

school sites and campuses including experimental farm stations operated by public or

private schools for educational purposes, seeds and seedlings research and pilot

production centers, church sites and convents appurtenant thereto, mosque sites and

Islamic centers appurtenant thereto, communal burial grounds and cemeteries, penal

colonies and penal farms actually worked by the inmates, government and private

research and quarantine centers and all lands with eighteen percent (18%) slope and

over, except those already developed shall be exempt from the coverage of the Act.

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SOURCES:

DEPARTMENT OF AGRICULTURE (http://www.da.gov.ph/)

http://www.fianphilippines.org/advocacy-policy-work/the-comprehensive-agrarian-

reform-program-carp/

https://focusweb.org/content/state-agrarian-reform-under-president-benigno-aquino-iii-

government

https://www.slideshare.net/lowell0916/comprehensive-agrarian-reform

https://www.scribd.com/doc/49033321/CARP-and-CARPER-distinctions

http://www.lawphil.net/statutes/repacts/ra2009/ra_9700_2009.html

tongkatmadura.info

Manila channel

www.flickr.com

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