Unit 4 Social, Political, Economic, and Cultural Issues in Philippine History

Chapter 11
AGRARIAN REFORM POLICIES
Learning Objectives
After completion of the lesson, the students should be able to:
 trace the history of the land reform program in the Philippines;
 discuss the salient features of each agrarian system; and
 evaluate the Comprehensive Agrarian Reform Program.

Introduction

The Philippine economy is largely agricultural and industrial. Agriculture has been existing even during the precolonial
times considering that rice is an Asian staple food along with other crops. The agricultural economy, however, has brought about
economic and social problems concerning the agrarian structure as well as land tenancy with the farmers – the ones who are actually
cultivating the fields – as the losers in this system.

What is RA 6657 or CARP – Comprehensive Agrarian Reform Program?

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 ownership
with empowered agrarian reform beneficiaries who can effectively manage their economic and social development to have a better
quality of life. (Department of Agrarian Reform, n.d.) By 2014, 5.05 million of the 5.37m hectares of the targeted agricultural land
shall have been distributed. As a program for land asset equity, it shall have accomplished 99% of its target, whopper of a success for
a government program. As a program to advance the economic welfare of farmers, it has accomplished the opposite of its stated
goals. Productivity has fallen drastically in coconut and sugar and poverty incidence among agrarian reform beneficiaries in agrarian
reform communities stood at 54% in 2011 higher than for farmers in general. CARP and CARPER has created a new class of people:
the landed poor. It has many design and implementation flaws that has brought this sad result among which are: CARP’s
illegalization of the market for land assets (Section 27) sending Coasean bargains underground and the 5-hectare land ownership
ceiling leading to the demise of the legal rural financial market and the flight of private capital . It is time to shift from land equity to
farm efficiency. Fabella (2014) argues that for the return of the market in rural production: let productive farmers legally cultivate 10
or more hectares as the market dictates; let PSE-registered firms legally operate agro-industrial farms without land ceiling. Poverty
reduction requires the shift of resources and manpower from informal to formal sectors. CARP has done the opposite. To echo the
architect of the great Chinese Economic Miracle, Deng Xiaoping: It is time to stop redistributing poverty!
The legal basis for CARP is the Republic Act No. 667 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. (Department of Agrarian Reform, n.d.)

REPUBLIC ACT NO. 6657

AN ACT INSTITUTING A COMPREHENSIVE AGRARIAN REFORM PROGRAM TO PROMOTE SOCIAL JUSTICE AND
INDUSTRIALIZATION, PROVIDING THE MECHANISM FOR ITS IMPLEMENTATION, AND FOR OTHER PURPOSES

Pre-Spanish Period
 “This land is Ours God gave this land to us”
 Before the Spaniards came to the Philippines, Filipinos lived in villages or barangays ruled by chiefs or datus. The datus
comprised the nobility. Then came the maharlikas (freemen), followed by the aliping mamamahay (serfs) and aliping
saguiguilid (slaves).
 However, despite the existence of different classes in the social structure, practically everyone had access to the fruits of the
soil. Money was unknown, and rice served as the medium of exchange.

Spanish Period
 “United we stand, divided we fall”
 When the Spaniards came to the Philippines, the concept of encomienda (Royal Land Grants) was introduced. This system
grants that Encomienderos must defend his encomienda from external attack, maintain peace and order within, and support
the missionaries. In turn, the encomiendero acquired the right to collect tribute from the indios (native).
 The system, however, degenerated into abuse of power by the encomienderos. The tribute soon became land rents to a few
powerful landlords. And the natives who once cultivated the lands in freedom were transformed into mere share tenants.

First Philippine Republic

 “The yoke has finally broken”
 When the First Philippine Republic was established in 1899, Gen. Emilio Aguinaldo declared in the Malolos Constitution
his intention to confiscate large estates, especially the so-called Friar lands.
 However, as the Republic was short-lived, Aguinaldo’s plan was never implemented.
American Period
 “Long live America”
 Significant legislation enacted during the American Period:
 Philippine Bill of 1902 – Set the ceilings on the hectarage of private individuals and corporations may acquire: 16
has. for private individuals and 1,024 has. for corporations.
 Land Registration Act of 1902 (Act No. 496) – Provided for a comprehensive registration of land titles under the
Torrens system.
 Public Land Act of 1903 – introduced the homestead system in the Philippines.
 Tenancy Act of 1933 (Act No. 4054 and 4113) – regulated relationships between landowners and tenants of rice
(50-50 sharing) and sugar cane lands.
 The Torrens system, which the Americans instituted for the registration of lands, did not solve the problem completely.
Either they were not aware of the law or if they did, they could not pay the survey cost and other fees required in applying for
a Torrens title.

Commonwealth Period
 “Government for the Filipinos”
 President Manuel L. Quezon espoused the "Social Justice" program to arrest the increasing social unrest in Central Luzon.
 Significant legislation enacted during Commonwealth Period:
 1935 Constitution – "The promotion of social justice to ensure the well-being and economic security of all people
should be the concern of the State"
 Commonwealth Act No. 178 (An Amendment to Rice Tenancy Act No. 4045), Nov. 13, 1936 – Provided for
certain controls in the landlord-tenant relationships
 National Rice and Corn Corporation (NARIC), 1936 – Established the price of rice and corn thereby help the
poor tenants as well as consumers.
 Commonwealth Act. No. 461, 1937 – Specified reasons for the dismissal of tenants and only with the approval of
the Tenancy Division of the Department of Justice.
 Rural Program Administration, created March 2, 1939 – Provided the purchase and lease of haciendas and their
sale and lease to the tenants.
 Commonwealth Act No. 441 enacted on June 3, 1939 – Created the National Settlement Administration with a
capital stock of P20,000,000.

Japanese Occupation
 “The Era of Hukbalahap”
 The World War II started in Europe in 1939 and in the Pacific in 1941.
 Hukbalahap controlled whole areas of Central Luzon; landlords who supported the Japanese lost their lands to peasants while
those who supported the Huks earned fixed rentals in favor of the tenants.
 Unfortunately, the end of war also signaled the end of gains acquired by the peasants.
 Upon the arrival of the Japanese in the Philippines in 1942, peasants and workers organizations grew strength. Many peasants
took up arms and identified themselves with the anti-Japanese group, the HUKBALAHAP (Hukbo ng Bayan Laban sa
Hapon).

Philippine Republic
 “The New Republic”
 After the establishment of the Philippine Independence in 1946, the problems of land tenure remained. These became worst
in certain areas. Thus, the Congress of the Philippines revised the tenancy law.
President Manuel A. Roxas (1946-1948) enacted the following laws:
 Republic Act No. 34 -- Established the 70-30 sharing arrangements and regulating share-tenancy contracts.
 Republic Act No. 55 -- Provided for a more effective safeguard against arbitrary ejectment of tenants.
Elpidio R. Quirino (1948-1953) enacted the following law:
 Executive Order No. 355 issued on October 23, 1950 -- Replaced the National Land Settlement Administration with Land
Settlement Development Corporation (LASEDECO) which takes over the responsibilities of the Agricultural Machinery
Equipment Corporation and the Rice and Corn Production Administration.

Ramon Magsaysay (1953-1957) enacted the following laws:

 Republic Act No. 1160 of 1954 -- Abolished the LASEDECO and established the National Resettlement and Rehabilitation
Administration (NARRA) to resettle dissidents and landless farmers. It was particularly aimed at rebel returnees providing
home lots and farmlands in Palawan and Mindanao.
 Republic Act No. 1199 (Agricultural Tenancy Act of 1954) -- governed the relationship between landowners and tenant
farmers by organizing share-tenancy and leasehold system. The law provided the security of tenure of tenants. It also created
the Court of Agrarian Relations.
  Republic Act No. 1400 (Land Reform Act of 1955) -- Created the Land Tenure Administration (LTA) which was
responsible for the acquisition and distribution of large tenanted rice and corn lands over 200 hectares for individuals and 600
hectares for corporations.
 Republic Act No. 821 (Creation of Agricultural Credit Cooperative Financing Administration) -- Provided small
farmers and share tenants’ loans with low interest rates of six to eight percent.
President Carlos P. Garcia (1957-1961)
 Continued the program of President Ramon Magsaysay. No new legislation passed.
President Diosdado P. Macapagal (1961-1965) enacted the following law:
 Republic Act No. 3844 of August 8, 1963 (Agricultural Land Reform Code) -- Abolished share tenancy, institutionalized
leasehold, set retention limit at 75 hectares, invested rights of preemption and redemption for tenant farmers, provided for an
administrative machinery for implementation, institutionalized a judicial system of agrarian cases, incorporated extension,
marketing and supervised credit system of services of farmer beneficiaries.
 The RA was hailed as one that would emancipate Filipino farmers from the bondage of tenancy.
President Ferdinand E. Marcos (1965-1986)
 Proclamation No. 1081 on September 21, 1972 ushered the Period of the New Society. Five days after the proclamation
of Martial Law, the entire country was proclaimed a land reform area and simultaneously the Agrarian Reform Program was
decreed.
 President Marcos enacted the following laws:
 Republic Act No. 6389, (Code of Agrarian Reform) and RA No. 6390 of 1971 -- Created the Department of
Agrarian Reform and the Agrarian Reform Special Account Fund. It strengthens the position of farmers and
expanded the scope of agrarian reform.
 Presidential Decree No. 2, September 26, 1972 -- Declared the country under land reform program. It enjoined all
agencies and offices of the government to extend full cooperation and assistance to the DAR. It also activated the
Agrarian Reform Coordinating Council.
 Presidential Decree No. 27, October 21, 1972 -- Restricted land reform scope to tenanted rice and corn lands and
set the retention limit at 7 hectares.
President Corazon C. Aquino (1986-1992)

 The Constitution ratified by the Filipino people during the administration of President Corazon C. Aquino provides under
Section 21 under Article II that “The State shall promote comprehensive rural development and agrarian reform.”
 On June 10, 1988, former President Corazon C. Aquino signed into law Republic Act No. 6657 or otherwise known as the
Comprehensive Agrarian Reform Law (CARL). The law became effective on June 15, 1988.
 Subsequently, four Presidential issuances were released in July 1987 after 48 nationwide consultations before the actual law
was enacted.
 President Corazon C. Aquino enacted the following laws:
 Executive Order No. 228, July 16, 1987 – Declared full ownership to qualified farmer-beneficiaries covered by PD
27. It also determined the value remaining unvalued rice and corn lands subject of PD 27 and provided for the
manner of payment by the FBs and mode of compensation to landowners.
 Executive Order No. 229, July 22, 1987 – Provided mechanism for the implementation of the Comprehensive
Agrarian Reform Program (CARP).
 Proclamation No. 131, July 22, 1987 – Instituted the CARP as a major program of the government. It provided for
a special fund known as the Agrarian Reform Fund (ARF), with an initial amount of Php50 billion to cover the
estimated cost of the program from 1987-1992.
 Executive Order No. 129-A, July 26, 1987 – streamlined and expanded the power and operations of the DAR.
 Republic Act No. 6657, June 10, 1988 (Comprehensive Agrarian Reform Law) – An act which became effective
June 15, 1988 and instituted a comprehensive agrarian reform program to promote social justice and
industrialization providing the mechanism for its implementation and for other purposes. This law is still the one
being implemented at present.
 Executive Order No. 405, June 14, 1990 – Vested in the Land Bank of the Philippines the responsibility to
determine land valuation and compensation for all lands covered by CARP.
 Executive Order No. 407, June 14, 1990 – Accelerated the acquisition and distribution of agricultural lands,
pasture lands, fishponds, agro-forestry lands and other lands of the public domain suitable for agriculture.

President Fidel V. Ramos (1992-1998)

 When President Fidel V. Ramos formally took over in 1992, his administration came face to face with publics who have lost
confidence in the agrarian reform program. His administration committed to the vision “Fairer, faster and more meaningful
implementation of the Agrarian Reform Program.
 President Fidel V. Ramos enacted the following laws:
 Republic Act No. 7881, 1995 – Amended certain provisions of RA 6657 and exempted fishponds and prawns from
the coverage of CARP.
 Republic Act No. 7905, 1995 – Strengthened the implementation of the CARP.
 Executive Order No. 363, 1997 – Limits the type of lands that may be converted by setting conditions under which
limits the type of lands that may be converted by setting conditions under which specific categories of agricultural
land are either absolutely non-negotiable for conversion or highly restricted for conversion.
  Republic Act No. 8435, 1997 (Agriculture and Fisheries Modernization Act AFMA) – Plugged the legal
loopholes in land use conversion.
 Republic Act 8532, 1998 (Agrarian Reform Fund Bill) – Provided an additional Php50 billion for CARP and
extended its implementation for another 10 years.
President Joseph E. Estrada (1998-2000)
 “ERAP PARA SA MAHIRAP’. This was the battle cry that endeared President Joseph Estrada and made him very popular
during the 1998 presidential election.
 President Joseph E. Estrada initiated the enactment of the following law:
 Executive Order N0. 151, September 1999 (Farmer’s Trust Fund) – Allowed the voluntary consolidation of small farm
operation into medium and large-scale integrated enterprise that can access long-term capital.
 During his administration, President Estrada launched the Magkabalikat Para sa Kaunlarang Agraryo or MAGKASAKA. The
DAR forged into joint ventures with private investors into agrarian sector to make FBs competitive.
 However, the Estrada Administration was short lived. The masses who put him into office demanded for his ouster.
President Gloria Macapacal-Arroyo (2000-2010)
 The agrarian reform program under the Arroyo administration is anchored on the vision “To make the countryside
economically viable for the Filipino family by building partnership and promoting social equity and new economic
opportunities towards lasting peace and sustainable rural development.”
 Land Tenure Improvement - DAR will remain vigorous in implementing land acquisition and distribution component of
CARP. The DAR will improve land tenure system through land distribution and leasehold.
 Provision of Support Services - CARP not only involves the distribution of lands but also included package of support
services which includes: credit assistance, extension services, irrigation facilities, roads and bridges, marketing facilities and
training and technical support programs.
 Infrastructure Projects - DAR will transform the agrarian reform communities (ARCs), an area focused and integrated
delivery of support services, into rural economic zones that will help in the creation of job opportunities in the countryside.
 KALAHI ARZone - The KALAHI Agrarian Reform (KAR) Zones were also launched. These zones consist of one or more
municipalities with concentration of ARC population to achieve greater agro-productivity.
 Agrarian Justice - To help clear the backlog of agrarian cases, DAR will hire more paralegal officers to support
undermanned adjudicatory boards and introduce quota system to compel adjudicators to work faster on agrarian reform cases.
DAR will respect the rights of both farmers and landowners.
President Benigno Aquino III (2010-2016)
 President Benigno Aquino III vowed during his 2012 State of the Nation Address that he would complete before the end of
his term the Comprehensive Agrarian Reform Program (CARP), the centerpiece program of the administration of his mother,
President Corazon Aquino.
 The younger Aquino distributed their family-owned Hacienda Luisita in Tarlac. Apart from the said farm lots, he also
promised to complete the distribution of privately-owned lands of productive agricultural estates in the country that have
escaped the coverage of the program.
 Under his administration, the Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS)
project was created to contribute to the overall goal of rural poverty reduction especially in agrarian reform areas.
 Agrarian Production Credit Program (APCP) provided credit support for crop production to newly organized and existing
agrarian reform beneficiaries’ organizations (ARBOs) and farmers’ organizations not qualified to avail themselves of loans
under the regular credit windows of banks.
 The legal case monitoring system (LCMS), a web-based legal system for recording and monitoring various kinds of agrarian
cases at the provincial, regional and central offices of the DAR to ensure faster resolution and close monitoring of agrarian-
related cases, was also launched.
 Aside from these initiatives, Aquino also enacted Executive Order No. 26, Series of 2011, to mandate the Department of
Agriculture-Department of Environment and Natural Resources-Department of Agrarian Reform Convergence Initiative to
develop a National Greening Program in cooperation with other government agencies.
President Rodrigo Roa Duterte (2016 – present)
 Under his leadership, the President wants to pursue an “aggressive” land reform program that would help alleviate the life of
poor Filipino farmers by prioritizing the provision of support services alongside land distribution.
 The President directed the DAR to launch the 2nd phase of agrarian reform where landless farmers would be awarded with
undistributed lands under the Comprehensive Agrarian Reform Program (CARP).
 Duterte plans to place almost all public lands, including military reserves, under agrarian reform.
 The President also placed 400 hectares of agricultural lands in Boracay under CARP.
 Under his administration the DAR created an anti-corruption task force to investigate and handle reports on alleged
anomalous activities by officials and employees of the department.
 The Department also pursues an “Oplan Zero Backlog” in the resolution of cases in relation to agrarian justice delivery of
the agrarian reform program to fast-track the implementation of CARP.

What is CARP? What is CARPER? (Pabilanea, 2014)

 The most important legal tool in the field of agrarian reform is the Comprehensive Agrarian Reform Program (CARP),
which aimed to grant landless farmers and farmworkers ownership of agricultural lands. The basis of this program is
Republic Act No. 6657, otherwise known as the Comprehensive Agrarian Reform Law of 1988 (CARL). The law
placed the welfare of the landless farmers and farmworkers to receive the highest consideration, pursuant to the principle of
 social justice. Further, the policy of the State to promote a sound rural development and industrialization coincided with the
principles behind the CARP. The beneficiaries of the CARP include the landless farmers, agricultural lessees, tenants,
seasonal and other farmworkers. The implementation of the CARP is a joint duty among many government agencies. The
DAR and the Department of Environment and Natural Resources (DENR) are the lead agencies in this program as they are in
charge of the identification and distribution of “CARPable” land.
 The CARP was strengthened by Republic Act No. 9700, otherwise known as the Comprehensive Agrarian Reform
Program Extension with Reforms (CARPER). The CARPER extended the deadline for the distribution of agricultural
lands to farmers for five years. It has been five years since the amendatory law became effective on August 7, 2009.
According to a commentary by Akbayan Representative Walden Bello (Philippine Daily Inquirer, June 10, 2014), the
CARPER is a powerful law when the following provisions are taken into consideration:

Sec. 5 of CARPER, amending Sec. 7 of CARL

 Outlawed voluntary land transfer used by landlords to retain control of land via the “Stock Distribution Option” as a method
of land redistribution.
Sec. 21 of CARPER, amending Sec. 63 of CARL
 P150 billion budget for land acquisition and support services
Sec. 9 of CARPER, amending Sec. 24 of CARL
 Indefeasibility or non-revocation of Certificates of Land Ownership Awards (CLOAs) and Emancipation Patents (EPs)
Sec. 23 of CARPER, amending Sec. 68 of CARL
 Immunity of DAR from temporary restraining orders or injunctions in the implementation of the agrarian reform program
Sec. 22 of CARPER, amending Sec. 65 of CARL
 Irrigated and irrigable lands as non-negotiable for land conversion

The most significant aspect of CARP to the Filipino farmers is land distribution. Land distribution and acquisition is initiated
by a Notice of Coverage (NOC), a letter informing a landowner that his/her land is covered by CARP, and is subject to acquisition and
distribution to beneficiaries. It likewise informs the landowner of his/her rights under the law, including the right to retain five
hectares. The issuance of the NOC is significant vis-à-vis the June 30, 2014 deadline because the law allows the continuation of land
distribution proceedings as long as they have already been initiated.

Who are the beneficiaries of CARP?

 Landless farmers, including agricultural lessees, tenants, as well as regular, seasonal and other farmworkers. The Department
of Agrarian Reform (DAR) identifies and screens potential beneficiaries and validates their qualifications. For example, to
qualify, you must 15be at least 15 years old, be a resident of the barangay where the land holding is located, and own no kore
than 3 hectares of agricultural land. (“Department of Agrarian Reform,” n.d.)

What are the government offices involved in the program?

 Many agencies are involved in the implementation of CARP. The lead agencies are the Department of Agrarian Reform
(DAR), and the Department of Environment and Natural Resources (DENR). They are in charge of the identification and
distribution of covered land, and is commonly referred to as CARPable land. (“Department of Agrarian Reform,” n.d.)

How much land is subject to land reform?

 An estimated 7.8 million hectares of land is covered by CARP. (“Department of Agrarian Reform,” n.d.)

How much land was distributed to beneficiaries under this administration?

 The government released an update on the accomplishments in the field of agrarian reform, as of June 30, 2014. According to
an Official Gazette issuance, “As of December 31, 2013, the government has acquired and distributed 6.9 million hectares of
land, equivalent to 88% of the total land subject to CARP.” Of this area, the Aquino administration has distributed a total of
751,514 hectares from July 2010 to December 2013. (Pabilanea, 2014)

How much land does the government still need to acquire for distribution from 2014-2016? (Pabilanea, 2014)
 As a program enshrined in the Constitution, the end should not be defeated by mere legal limitations of expiration. Almost a
million hectares of land has yet to be acquired by the government for distribution in the 2014-2016 period: 771,795 hectares
and 134,857 hectares for DAR and DENR, respectively. The following table shows the target number of land hectares for
distribution as released by the Official Gazette:
Year Number of Hectares
2014 187,686
2015 198,631
2016 385,478

 The target number of hectares schedule per year is not without any uncertainty, as 551,275 hectares of the CARPable
landholdings to be distributed are considered workable, while 220,520 hectares are labelled as problematic. With an efficient
and dedicated process, the future distribution will be a milestone success to the Filipino farmers and to the Philippine
agricultural sector.
How will the government acquire the landholdings?
 There are different modes of acquiring and distributing public and private agricultural lands. For private lands under
compulsory acquisition, the DAR will issue Notice of Coverage (NOC) to the original owners of the landholdings. Notices of
Coverage will be issued to most of the landholdings by June 30, 2014. (“Department of Agrarian Reform,” n.d.)

What is a notice of coverage?

 A Notice of Coverage (NOC) is a letter informing a landowner that his/her land is covered by CARP, and is subject to
acquisition and distribution to beneficiaries. It likewise informs the landowner of his/her rights under the law, including the
right to retain 5 hectares. (“Department of Agrarian Reform,” n.d.)

After the period of time allotted for CARPER by law is passed (August 7, 2009 to June 30, 2014), how will the remaining
landholdings, which are subject to compulsory acquisition, be distributed to the beneficiaries?
 June 30, 2014 marked a significant day in the history of CARPER—the finish line. Section 5 of the CARPER Law provides
for “the final acquisition and distribution of all remaining unacquired and undistributed agricultural lands from the effectivity
of this Act until June 30, 2014.” One interpretation of CARPER is that land acquisition and distribution shall be barred by
June 30, 2014. This is based on the provision of Section 7 of the CARP Law, as amended by CARPER, saying that “land
acquisition and distribution shall be completed by June 30, 2014 on a province-by-province basis.” Several socio-political
movements lobbied for the full implementation of CARPER by extending the date to ensure that the “CARPable” lands are
distributed to the beneficiaries under the law.
 It is noteworthy that the CARPER Law also mandates that “any case and/or proceeding involving the implementation of the
provisions of Republic Act No. 6657, as amended, which may remain pending on June 30, 2014 shall be allowed to proceed
to its finality and be executed even beyond such date” (Sec. 30 of CARPER). Using this provision, the expiration date should
be immaterial to the proceedings where the NOC have already been issued. The problem arises for the “CARPable lands” for
which no NOC has been issued yet. There is a view that for cases wherein no NOC has been issued, the initiation of
proceedings is forever barred due to the expiration of CARPER. As of press time, this remains to be a question that only an
enabling law can solve.

What are the challenges encountered in the course of acquiring and distributing private lands? (From the Presidential
Communications Development and Strategic Planning Office and the Department of Agrarian Reform)
 In some cases, technical descriptions in the land titles (which determine the boundaries of the land) were found to be
erroneous and had to be corrected. Some titles were destroyed, and therefore, had to be reissued by undergoing a court
process, similar to filing a case. Potential beneficiaries argued among themselves on who should or should not be qualified as
beneficiaries; these disputes had to be mediated or resolved by the government. In other cases, landowners may petition that
their lands be exempted or excluded from CARP coverage, and some of these petitions have gone up to the Supreme Court.
 Smaller parcels of land (5 hectares to 10 hectares) were only processed in the last year of implementation of CARPER (July
1, 2013 to June 30, 2014). Past efforts focused on bigger parcels of land, which involved more paperwork to process. Now
that efforts are focused on smaller but more numerous cuts of land, there are more claim folders to process and distribute.
(“Department of Agrarian Reform.” n.d.)