Agrarian Law

 is derived from the Latin word “ager” which means a field. 

 the word agrarian means” relating to land or to the ownership or division of land”

Agrarian Reform
 refers to the distribution of public agricultural lands, large estates, and regulation of the relationship
between the landowner and the farmer who works on a land.  it embraces all laws that govern and
regulate the rights and relationship over agricultural land between landowners, tenants and lessees, for
agricultural workers.
 Objective:   redistribution of agricultural lands; breakup agricultural lands and transform them into
economic size forms to be owned by the farmers themselves, with the end in view of uplifting their
socioeconomic status.
1. is founded on the right of farmers in regular farm workers who are landless, to own directly or
collectively the land they till or, in a case of other farm workers, to receive a just share on the
foods thereof.
Social legislation
 no precise definition 
 is broad
 its emphasis is more on the aspect of general public good and social welfare.

THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988: 

REPUBLIC ACT NUMBER 6657

Agrarian Reform: 
 redistribution of lands, regardless of crops or fruits produced to farmers in regular farm workers who are
landless, irrespective of  tenurial  arrangement, to include  the totality of factors and support services
designed to lift the economic status of the beneficiaries and all other arrangement alternative to the
physical redistribution of land, such as production or profit sharing, labor administration, in the
distribution of shares of stocks, which may allow beneficiaries to receive a just share of the fruits of the
land still work

Applicability of the CARL

 applicable only to agricultural lands; does not apply to   lands  classified as residential, commercial,
industrial, mineral or  forestland.

Agricultural Land
 refers to land devoted to agricultural activities; it contemplates lands that are abilene suitable for
farming 

Constitutionality of the CARL:

 it is not unconstitutional because it is a valid exercise of police power

Economic-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 the farm family’s  need for
food,  clothing,  shelter, and education with possible allowance for payment of yearly installment on the
land, and reasonable reserves to absorb   yearly fluctuations in income

Agriculture, Agricultural Enterprise, Agricultural Activity: 

 means the cultivation of the soil, planting of crops, growing of fruit trees, and clothing harvesting of such
farm products and other farm activities and practices performed by the farmer in conjunction with such
farming operations than by person whether natural or juridical
 
Agrarian Dispute: 
 any controversies relating to tenurial arrangement, weather leasehold, tenancy, stewardship, or
otherwise, overland devoted to agriculture, including disputes concerning farmworkers’ associations or
representation of person in negotiating, fixing, maintaining, changing, or seeking to arrange terms or
conditions of such tenurial arrangements; 
 includes controversies relating to compensation of lands acquired under this act and other terms and
conditions of transfer of ownership from landowners to farm workers, tenants, and other agrarian reform
beneficiaries, whether the disputant standing the proximate relation of farm operator and beneficiary,
landowner, tenant, or lessor and lessee

 Idle or Abandoned Land:

 refers to any agricultural land cultivated, tilled or developed to produce any crap lord able specific
economic purpose continuously over a  period of  three years immediately prior to the receipt of notice
of acquisition by the government as provided under this act, does not include land that has become
permanently irregularly devoted to it non-agricultural purposes;  it does not include land that become
and productive by reason of force majeure or any other fortuitous event,  provided, that prior to such
event, such land was previously used for agricultural and other economic purpose 

Farmer: 
 refers to a natural person whose primary livelihood is cultivation of land or the production of agricultural
crops, livestock and/or  fisheries either by himself/ or herself, are primarily with the assistance of his/her
Immediate farm household, whether the land is owned by him or her, or by another person under a nice
cold or share tenancy agreement or arrangement with the other owner thereof

Farm Worker
 as a natural person who rendered services firm value as an employee or liver in an agricultural
enterprise or farm regardless of whether his compensation is paid on daily, we weekly, monthly, or
pakyaw basis;
 the term includes and individual whose work has ceased as a consequence of, or in connection with, a
pending agrarian dispute and who has not obtained as substantially equivalent in regular form
employment regular farm worker: is a natural person who is employed on a permanent basis by in
agricultural enterprise or farm

Seasonal Farm Worker:

 it is a natural person who is employed on recurrent, periodic or intermittent basis by an agricultural
enterprise or farm, whether as a permanent or a non-permanent laborer

Other Farm Worker

 as a farm worker who does not fall under paragraph g, h, and i

Cooperative: 
 refers to organization composed of primarily of agricultural producers, farmers, for, for other agrarian
reform beneficiaries who voluntarily organize themselves for the purpose of pooling land, human,
technological, financial or other economic resources, and operated on the principle of one member, 1
vote. 
 a juridical person may be a member of a cooperative with the same rights and duties as a natural
person 

Luz Farm vs. Secretary of Agrarian Reform: 

 the Supreme Court declared unconstitutional the inclusion of lands devoted to raising livestock, poultry,
and swine really the term of agriculture; the reason is because in livestock poultry or swine farming, no
land is tilled  and no crop is harvested; also land is not a primary source in raising livestock, poultry,
and swine;

 LANDS COVERED BY  AGRARIAN REFORM LAW

  general rule: (a) all public  in private agricultural lands, (b)   other lands of the public domain suitable
for agriculture

 LANDS NOT COVERED BY THE AGRARIAN REFORM LAW

a.  private lands with the total area of 5 hectares and below
b.  lance actually, directly, and exclusive be used for parks,  wildlife,  forest reserves,  reforestation fish
sanctuary and breeding grounds, watershed, And mangroves
c. Private lands actually, directly and exclusively used for prawn farms and fish ponds 
d. Lands actually, directly, and exclusively used and found to be necessary for:
i.  national defense
ii.  school sites and campuses
iii.  experimental farm stations operated for educational purposes
iv.  seeds and seedling research and pilate production center
v.  church sites and convents appurtenant thereto
vi. Mosque sites and islamic centers appurtenant thereto 
vii.   communal burial grounds  and cemeteries
viii.   Penal  colonies and penal  farm actually worked by the inmates
ix.  research and quarantine centers
x.  all lands with 18% slope and over, except those already developed 
section 5: schedule of implementation--  the distribution of lands covered by this actual be implemented
immediately and completed within 10 years from the effectivity thereof
implementation extended by republic act No.  9700:  section 7 of this law extended the implementation
of the carp,  particularly, the  the acquisition of distribution of agricultural lands to june 30 2014

 section 6 retention limits:  

1. Retention right of the landowner→  under section 6 of  the CARL, the owner has the right to retain not
more than 5 hectares of his land holdings. the retained area need not be personally cultivated by the
landowner-- cultivation can be done indirectly through labor administration
2.  can a landowner who has already exercise his retention rights under pd number 27 entitled to the
retention right under the carl? →  no, if the land owner has already exercises right of retention, he can
no longer exercise the retention right under the carl.  Exaction:  if the landowner chooses to retain 5
hectares under the carl, e7 hector's previously  retained by him under pd 27 shall be immediately
placed under the  coverage of the carl
3.  can spouses retain 5 hectares is under their agrarian reform law?  it depends:
1.  if the property regime is conjugal or absolute community-- the spouses can retain only 5
hectares
2.  if the property regime is separation of property the spouses can retain 5 hectares each ( total of
10 hectares)
b.  who has the right to choose the retention area?  Landowner;  the chosen area should be contact or
contiguous. As long as the area to be retained is compact or  contiguous,  it does not exceed the
retention ceiling of  5 hectares, the landowner toys of their area to be written must prevail. 
c.  how long?  within 60 days from receipt of the notice of coverage.  if the landowner does not exercise
his right of retention within the specified,  the municipal agrarian reform officer will designate the
retained area for the land owner.  if the landowner disagrees with the area selected for attention,  he
me follow protest with the morrow
d.  can a landowner exercise is right to retention over the land which has already been covered by the
emancipation patent or certificate of land ownership award?  No,  they is one of emancipation patent or
certificate of land ownership award to beneficiaries does not absolutely bar to landowner from retaining
area covered thereby.  if the landowner has been deprived of his right to retention he may file a petition
for cancellation of dti or cloa that may have been issued to the tenants.  ep or cloa  may be cancelled if
the land covered is later found to be part of the landowners retained area
e.  suppose a retention area chosen by the landowner is tenanted what happened to the tenant?  fb area
selected for attention by the landowner is tenanted,  the tenant may choose on whether to remain there
in or be a beneficiary in the same or another agricultural land with similar or comparable features.  the
tenant must exercise this option within a period of one year from the time the landowner manifest his
 choice of his retention. NOTE:    the  law speaks of tennant and not just  a mere settler of the land .
we're occupation or cultivation of an agricultural land will not ipso facto make the tiller an agricultural
tenant
f. ELEMENTS: (a)  owner has engaged  a person to personally cultivate an agricultural land; and (b)  the
landowner is compensated in terms of  share is in the produced (share tenancy)  or in terms of a price
certain in produced or in money or both (Leasehold tenancy)
g.  effect of the chooses to remain in the retained area:  if the tenant chooses to remain in the  retained
area, he will no longer be considered as a tenant but as an agricultural lessee and he will no longer
qualify as an agrarian reform beneficiary
h.  an agricultural lessee will be entitled to so
1.   peaceful possession and enjoyment of the land
2.  manage and work on the land in a manner and method of cultivation and harvest which
conform to proven farm practices
3.  mechanized all.or  any phase of his farm work
4.  deal with millers and processors and attend to the issuance of quedans  and warehouse
receipts for the produced due him
5.  be afforded a home lot
6.  bm demi fight for the cost and expenses incurred in the cultivation, planting  or harvesting and
other expenses incidental of his crop in case he surrenders or abandoned his landholdings for
just cause or ejected therefrom
7.  by the agricultural land holding under reasonable terms and condition in case the agricultural
lessor decides to sell the same
8.  redeem the land holding at a reasonable price and consideration in case agricultural lessor sold
the same to a third person without his knowledge
b.   obligations of  agricultural lessee
1.  to cultivate and take care of the farm, growing crops, and other improvements on the land
holding as a good father of a family and perform all the work therein in accordance with the
practices
2.  informed agricultural lessor with the reasonable time at of any trespassed committed by third
persons up on the farm without prejudice of his direct action against the trespasser
3.  take reasonable care of the work animals and farm implements deliver to him by in agricultural
lessor
4.  keep is farm and growing crops attended to during the works hizon
5.  notify the agricultural lessor of at least three days before the date of  harvesting or, whenever
applicable, of threshing
6.   pay the lease rental to the agricultural lessor when it falls due
b.  what is the term of the lease?  the agricultural leasehold relation once established continues until such
leasehold relation is extinguished through any of the following means
1.  abandonment or voluntary soul render of the land holding by the lessee
2.  absence of successor 
b.  leasehold relation is not necessarily extinguished by death or incapacity of the lessee.  if the lessee
dies or is a permanently disable the list hold continuous between the agricultural lessor and the person
who can cultivate the land holding personally, which the lessor can choose from among the following
1.  surviving spouse
2.  eldest direct descendant by consanguinity
3.  next  eldest descendant or descendants in the order of their age
b.  agricultural leasehold is not terminated or extinguished a mere expiration of the term or period in the
leasehold contract.  Neither  is it terminated by the transfer of ownership or legal possession of the land
holding. if the agricultural lessor transfer the ownership illegal possession of the land holdings, the
transferee becomes at the agricultural lessor
c.  effect if the tenant chooses to be a beneficiary:  he loses his right to be a lessee of the land retained by
the  landowner
d.  children of the land owner are entitled to 3 hectares each:  if the landowner owns more than 5 hectares
of agricultural land, the excess area may be awarded to the children of the landowner to the extent of
three hectares for each child under the following conditions:
1.  the child at is at least 15 years old
 2.  the child is actually tilling the land or directly managing the farm
b.  the child  need not directly or personally till the land; it is enough that he directly manages the farm; a
qualified child who owns less than 5 hectares of agricultural land is entitled to an award of his parents
not holding provided it is total area, in include the area to be awarded does not exceed the 5 hectare
ownership ceiling
c.  lands awarded to qualified children of that owners cannot be sold, transferred or conveyed within the
period of 10 years except
1.  through hereditary succession
2.  to the government
3.  to the land bank of the philippines 
4. To other qualified beneficiaries 
b. The children or the spouse of the transferor can repurchase the land from the government or the land
bank of the philippines within a period of two years from the date of the transfer
c. Right of homesteaders visa v right of tenants:  section 6 of article 13 of the constitution provides that: “
station apply the principles of agrarian reform or stewardship, whenever applicable in accordance with
law, in the disposition or utilization of other natural resources, including lands of public domain under
the list or concessions suitable to agriculture, subject to xxx  homestead rights of a small settlers, and
the right of indigenous cultural communities to their ancestral lands”; “ xxx  original homestead grantees
order direct  compulsory heirs who still own the original homestead at the time of the approval of this
action retains the same areas as long as they continue to cultivate the said homestead
1.  it can be seen that both a constitution and a carl respect the superiority of the rise of the
homesteaders over the right of tenant.  while the agrarian reform law as a remedial measure
promulgated pursuant to the social justice precepts of the constitution, it cannot be invoked to
defeat the very purpose of the enactment of the commonwealth act 141. the homestead act has
been enacted for the welfare and protection of the poor. the log gives a needy citizen a piece of
land where he me build a modest house from self and family and platt what is necessary for
subsistence and for the satisfaction of life solder needs
2.  the owners ( order direct compulsory heirs)  of the lands acquired through homestead grants or
free patent under commonwealth act 141 are entitled to retain the entire area ( even if it exceed
5 hectares),  provided that:
1.  they were cultivating the same at the time of the approval of the carl ( june 15 1988)
2.  they continue to cultivate the same 
Section 6-A: Exception to Retention Limits:
1. Expropriation of private agricultural lands by local government units:  if a local government unit
expropriate a private agricultural land for actual, direct, And exclusive public purpose, department of
agrarian reform should first subject it to two agrarian reform coverage.  This means that the land should
first be acquired with national government through the dark who will pay just compensation to the land
owner, thereafter, the door will distribute the land to the agrarian reform beneficiary. After distribution,
the lgu will expropriate the land and paid agrarian reform beneficiaries of the just compensation

 section 6 b: review of limits of land size

a.  is an implied recognition that the uniform setting of 5 hectares limit for all agricultural land holding may
not be feasible, considering that economic differences for each type of agricultural product

 section 7: priorities
1.  acquisition and distribution scheme:  it follows the order of priority
1.  lands with an area of more than 50 hectares to be completed by june 30 2012 is specifically
1.  those which have already been subject to notice of coverage on or before december 10
2008
2.  rice and corn lands
3.  idle or abandoned lands
4.  private lands voluntarily offered  by the owners for agrarian reforms
5.  lands  foreclosed by government financial institutions 
6. lance acquired by pc gg
7.  all other lanzona government devoted to or suitable for agriculture
ii.  land area of 24 hectares  to  50 hectares, to be completed by june 30 2013, specifically
 1.  all alienable  or disposable public agricultural lands
2.  all arable public agricultural lands under agroforest, pasture, and agricultural  leases
already cultivated and planted to crops in accordance with section 6 article 13 of the
constitution
3.  all public agricultural lands which are to be opened for new development and
resettlement
4.  all private agricultural lands had already been subjected to a notice of coverage issued
on or before december 10 2008
5.  all remaining private agricultural  agricultural lands regardless as to whether they have
been subjected to notices of coverage
ii. lands with an area of more than 10 hectares to 24 hectares, to on to june 30 2013
iii. Lands from the retention limit upto 10 hectares, to be completed by june 30 2014
Note: only farmers ( tenants or leasees)  and regular farm workers actually telling the lands as
certified under oath by the barangay agrarian reform council and attested under oath by the land
owners can be considered as qualified beneficiaries;  the intended beneficiary shall state under
oath before the charge of the city or municipal court that he is willing to work on the land to
make it productive and to as home the obligation of paying the amortization for the
compensation of the land and the land taxes thereon 

Section 8: Multinational corporations

1.  lands possessed by multinational corporations or covered by the carl:  agricultural land leased, healed
or possessed by multinational corporation are also subject to compulsory acquisition and distribution; 
the land shall be distributed directly to the individual workers-beneficiaries. 
2. If  it is not economically feasible in sound to divide the lands,  the individual worker beneficiary shall
form a workers cooperative or association which will deal with a corporation by way of these of growers
agreement and other legitimate purposes 

Section 9: Ancestral lands

1.  ancestral lands:  lands of the public domain that have been in open, continuous, exclusive, and
notorious  occupation and cultivation by members of the national cultural communities by themselves or
through their ancestors and their a bona-fide they claim of acquisition of ownership according to their
customs and traditions for a period of at least 30 years before the date of approval of presidential
decree 410
1.  it refers to the land occupied, possessed and utilized by individuals, families, and  clan who are
members of the indigenous cultural communities or indigenous people since time immemorial,
by themselves or through their predecessors in interest, under claims of individual or traditional
group ownership, continuously to the present except when interrupted by war, force majeure, or
displacement by force, deceit, stealth, or as a consequence of government projects and other
voluntarily links and turn into by government and private individual, including but not limited to,
residential lots, rice terraces or paddles, private forest, swidden  farms, and tree lots
b.  ancestral lands  exempted from the guardian reform law
1.  the comprehensive agrarian reform the recognizes and respects the system of land ownership,
land use, and the modes of settling  land disputes of all indigenous cultural communities or
indigenous peoples,  in line with the principles of self-determination and autonomy
2.  in the autonomous regions, the respective legislators may enact their own lost an ancestral
domain subject to the provisions of the constitution in the principles in an sated and a
comprehensive agrarian reform other national laws

 section 10:  exemptions and exclusions

1.  land classification in the tax declaration is not conclusive
1.  tax declarations are not the sole basis of land classification, does, even if the tax declaration
classifies the  land as agricultural, such classification is not irrefutable
b. Classified as  non-agricultural prior to the effectivity of the carl are not covered
1.  lands already classified for residential commercial and industrial use by the housing and land
use regulatory board prior defectivity of the comprehensive agrarian reform law  are not subject
to  agrarian reform
 b.  land with at least 18% slope
1.  the reason for exempting lance with at least 18% slope from the coverage of agrarian reform is
to prevent adverse effects on the lowlands and streams resulting from soil erosion 
2.  that is why all lands of the public domain with at least 18% slopes are considered as permanent
forest or forest reserves, regardless of the condition of vegetative cover, occupancy, or use of
any kind, and they're off, not  alienable or disposable
3.  if the land wait at least 18% slope has been previously classified as disposable, but not yet
title,  it's  shall be  reverted to the category of public forest
4.  if the land has been covered by an approved public land application or occupied openly,
continuously, adversely, and 30 here's as of the effectivity of the forestry reform code, show me
main as such alienable or disposable  on condition that deal and is kept in a vegetative state
sufficient to prevent erosion and adverse effects in the lowlands and streams
b.  social sites and campuses
1.   lands actually, directly, and exclusively use and found necessary for school sites in campuses
are exempted from the coverage of agrarian reform
2.  the school is in the best position to determine whether the land is necessary for use as school
site or campuses
3. The DAR has no right to substitute its judgment or discretion for that after school
b.  who has Jurisdiction exempt property from agrarian reform coverage?  secretary of agrarian reform

Section 11: Commercial Farming

1.  commercial farms are lands devoted to
1. Salt beds
2.  fruit farms
3.  Orchard
4.  vegetable and cut flower farms
5.  cacao, coffee and rubber plantations
b.  implementation of agrarian reform law deferred on commercial farms
1.  compulsory acquisition and distribution of commercial farms has been deferred for 10 years
1.  from defectivity of a comprehensive agrarian reform law ( june 15 1988)-- four farms
already existing when the lot to effect
2.  from the first year of commercial production and operation-- for new farms
b.  mode of acquisition of commercial farms
i.  voluntary offer to sell
ii.  compulsory acquisition
iii.  direct payment scheme
b. Manner of distribution of commercial farms
i.  may be distributed individually or collectively
ii.  individual beneficiaries are entitled to 3 hectares H4 minimum of 1 hectare each, if the land is
not sufficient accommodate them
iii.  order of priority in the distribution
1.  agricultural lessee and share tenants
2.  regular farm workers
3.  seasonal farm workers
4.  other farm workers
5.  actual tillers or occupants of public lands
6.  collectives are cooperatives of the above beneficiaries
7.  other directly working on the land
ii.  if it is not economically feasible and sound to divide the land, the beneficiaries will be of large to
form a workers cooperative or association
iii.   infrastructure facilities and improvements which are necessary and beneficial to the
corporation of the farm, including buildings, rodes, machinery, receptacles, instruments or
implements permanently attached to the land may be subject to acquisition, as determined by
the DAR upon recommendation of the agrarian reform beneficiary
iv.  qualification of commercial farm beneficiaries
1.  Qualification
 1.  18 years at the time of the filing of the application as beneficiary
2.  must have the willingness, aptitude and ability to cultivate and make the land
productive
3.  must have been employed in the commercial form between june 15 1988 and 15
1998  or upon the expiration of the deferment
2.  farm workers who have work the longest on the land continuously will be given priority
ii. who are qualified to become farmer beneficiaries
1.  farm workers who have retired from service whether optional or compulsory
2.  farm workers have resigned from their employment with a farm
3.  farm workers have been dismissed for a cause
4.  farmworkers, lessees or tenants who ever refused to be a beneficiary
5.  farm workers,  lesses  or tenants who have committed a violation of agrarian reform
laws or regulations 
ii.  freedom of beneficiaries to choose the type of agribusiness
1.   to choose the type of agribusiness venture arrangement that will maintain the economic
viability of the farm
2.  to market their products or enter into marketing arrangement
3.  To  avail of the services or assistance of individuals, associations or non government
organization in negotiating for the most advantageous agribusiness venture
arrangement, enterprise development, and capability building
ii.  types of agribusiness ventures arrangement
1.  joint venture arrangement- a company is organized and co owned by an investor and
agrarian reform beneficiaries through their cooperative and association. The  investor
may provide the management in marketing skills, technology infrastructure and capital,
while the  distribu or participation of the agrarian reform beneficiaries includes labor,
usufructuary rights  to the land, and capital infusion, if available
2. Lease arrangement--   the agrarian reform beneficiaries through their cooperative or
association, enter into a contract of lease with the land owner or investor. The  the less
you control the farm operations within an agreed period of time not exceeding ten years,
extendible by agreement
3.  contract growing/Growership arrangement-- the agrarian reform beneficiaries or their
cooperative produce certain crops for an investor or agribusiness firm which buys the 
produced at the pre-arranged terms 
4. management contract-- The agrarian reform beneficiaries or their cooperative hire the
services of the landowner or investor to manage and operate the farm in exchange for
fixed  wages and commission
5.  Build-operate-transfer  scheme:  the project proponent undertakes the financing and
construction of a given infrastructure facility and the operation and maintain and still
offering agreed period of fine not exceeding 25 years, subject to extension
ii.  right of retention over commercial farms: provided in section 6 of the comprehensive agrarian
reform law
Section 12: Determination of Lease Rentals: 
1.  power of the department of agrarian reform to fix rentals
1. Under section 6 of the carl, the tenant may choose to remain a top portion retained by the
landowner, in which case he will no longer be considered as a tenant  but a lessee
2.  to protect the economic status of the farmer, the department of agrarian reform is empowered
to determine and fix the lease rental
3.  this is how did their takes the lease rentals
1.  for  lands  devoted to rice and other crops→  25% of the average normal harvest after
deducting the amount used for seeds in the cause of harvesting, or threshing. If  if there
has been no normal harvest,  then the estimated normal harvest during the three 
agricultural years immediately preceding the date the leasehold was established
2.  for sugarcane lands→  25% of average normal harvest less the value of the cost of
seeds or canes points, harvesting, loading, hauling, and/or trucking fee, and cost of
processing
 3.  for coconut lands→  25% of the average normal harvest fora specific area for the
preceding three calendar years less the value of production cost

Section 13: Production Sharing Plan

1. applicability of the law
1.  farms operating under a production venture, lease,  management contract or other similar
arrangement
2.  farms lease or operated by multinational corporations
3.  commercial farms
Section 14:  registration of landowners
1.  purpose of the law is to identify the lands and their owners for effective implementation of the agrarian
reform program 

Section 15:  registration of beneficiaries

1.  purpose of the law
1.  the purpose of requiring registration of agricultural lessees, tenants, and farm workers is to
develop a data bank of potential and qualified beneficiaries for defective implementation of the 
agrarian reform program

Section 16:  procedure for acquisition and distribution of private lands

1.  the compulsory acquisition process
1.  identification by the department of agrarian reform of the land, landowner and beneficiary
2.  notice by the department of agrarian reform to the owner about the compulsory acquisition and
the price offer
1.  personal notice or by registered mail
2. Posting of the notice in the conspicuous place in the barangay hall and municipal hall
where the land is located
ii.  reply by the landowner about his acceptance or rejection of the offer
1.  if the landowner accepts the offer price→  the land bank will pay the landowners within
30 days from the execution and delivery of deed of transfer
2.  if the a landowner rejects offer→  the department of agrarian reform will determine to
just compensation thru summary administrative proceedings
3.  if the landowner disagrees With the decision of the department of agrarian reform, he
may bring the matter to the regular courts of justice for final determination of just
compensation
ii.  taking  off immediate possession of the land by the department of agrarian reform
1.  if the landowner receives the corresponding payment
2.  if the landowner does not respond to the notice of acquisition
ii.  request by the department of Agrarian reform to the register of deeds to issue a transfer
certificate of title to the republic of the philippines
iii.  distribution of the land to the qualified beneficiaries
b.  two notices are required for validity of implementation
i.  notice of coverage  pursuant to DAR  administrative order no.  12, series of 1989
ii.  notice of acquisition pursuant to section 16 of the comprehensive agrarian reform law 
NOTE: the first notice is in compliance With administrative due process, considering that
implementation of the agrarian reform law is an exercise of police power and the power of
eminent domain
3.  land acquisition procedures should be strictly construed
3.  when title ownership of the land is transferred to the state
a.  until just compensation is finally determined and fully paid, the title and ownership remains with
the landowner.
b.  this is even so if the department of agrarian reform has deposited offered price with the land
bank
3.  opening of trust account does not constitute payment
a.  what the law requires is just compensation to be paid in cash oras land bank bonds and not by
trust account
Section 17: Determination of Just Compensation
1.  concept of just compensation:
1.  defined as the full and fair equivalent of the  property taken from its owner by the operator
2.  the word just is used to intensify the meaning of the word compensation to convey the idea that
equivalent to be rented for the property to be taken should be real, substantial, full
3.  does not only correct determination of the amount to be paid to the land owner, but also prompt
payment;  there is no prompt payment when reimbursement is conditioned upon the land banks
approval and release of the amount is made to depend upon compliance with some
documentary requirements
4.  prompt payment of just compensation does not only contemplate immediate deposit and beliefs
of the provisional compensation. it also  encompasses the full payment of the finally adjudged
just  compensation
b.  the factors used in valuation of land
1.  capitalized net income which is based on the land use and productivity
2. Comparable sales which is based on 70% of bir zonal value
3.  market value which is based on the tax declaration 
b.  reckoning of valuation
1.  at the time it was taken from the owner and appropriated by the government will be the basis
2.  the time of taking does not only refers to that stage when the title is transferred to the republic
of the philippines or the beneficiaries-- it also refers to the time when the agricultural land
voluntarily offered by a landowner was approved by presidential agrarian reform council for
agrarian reform coverage through the stock distribution scheme
3.  if there is an undue delay in payment, the value of the property should be determined not at the
time of the taking of the land,  but at the time of full payment of the just compensation
b.  procedure for determination of just compensation
1.  commences with landbank determining the value of the lance
2.  using landbank valuation, the department of agrarian reform makes an offer to the land owner
3.  in case the landowner  regects the offer, department of agrarian reform conducts a summary
administrative proceeding to determine the compensation of the land by requiring the land
owner, the land bank and other interested parties to submit evidence as to the just
compensation
4.  a party who disagrees with the decision of the adjudicator may bring the matter to the regional
trial court designated as a special agrarian court for final determination of just compensation
b.  role of the DARAB
1.  can conduct a summary administrative proceeding for the preliminary determination of just
compensation in order to determine whether land below asian competitions of the land bank are
in accordance with the rules or administrative order
2.  the preliminary proceedings of land valuation for the purpose of determining the just
compensation for its  acquisition shall be conducted by
1.  parad-- when the initial land valuation of the land bank is less than 10 million
2.  Rarad--  wendy initial land valuation of the land bank is 10 million to 50 million
3. Darab--  when the  initial land valuation of a land bank is above 50 million
b.  evaluation set by dar not inclusive, the landowner can still contest the same in the proper court
c.  courts cannot disregard the formula
i.  while the determination of just compensation is essentially a judicial function vested in the
regional trial court acting as a special agrarian court, it cannot disregard the formula laid down
by the department of agrarian reform. The  th factors for the determination of just compensation
which the door converted into formula are mandatory and not mere guides wish the designated
rtc n may disregard
b. consent of beneficiary  not necessary in determining just compensation
i.  does not mention the participation of farmer beneficiary
ii.  the land bank cannot refuse to pay the valuation set by the parad Simply because the consent
of the farmer beneficiary was not obtained in fixing the just compensation

Section 18: Valuation and Mode of Compensation

1. Mode of payment
 1. Cash and financial Instrument of the government payable as follows
1.  land above 50 hectares
1.  25% in cash
2.  75% in government financial instruments
2. land above 24 hectares to 50 hectares
1.  30% in cash 
2. 70% in government financial instrument
3. lands above 24 hectares and below
1.  35% in cash
2.  65% in government financial instruments
ii.  shares of stocks and government owned and controlled corporations, preferred shares of the
land bank, physical assets and for other qualified in investments
iii.  tax credits which can be used against tax liabilities
iv.  land bank bonds which shall mature every year until the 10th year
b. landowner cannot insist in cash payment only
i.  what the losses is that just compensation shall be paid partly in cash and the remainder by
means of bonds, government financial instruments, share of stocks in goccs, tax credits or land
bank bonds
b. features of the land bank bonds
i.  10% of the face value of the bonds mature every year from the date of this once until  the 10th
year
ii.  bonds are transferable and negotiable
iii.  ponds can be used for any of the following
1.  acquisition of land or other real properties of the government, including assets under the
asset privatization program and other asset foreclosed by government financial
institutions in the same province or region where the land through which the bonds were
paid are situated
2.  acquisition of land shares of stocks of government owned and controlled corporations or
share of stocks owned by the government and private corporations
3.  bail bonds for the provisional release of the accused persons, or performance bonds
4.  security of for loans with government financial institution, provided to the proceeds of
the loans  shall be  invested in an economic enterprise
5.  payment for various taxes and fees  to government
6. payment for tuition fees of the immediate family of the original band holder and
government universities, colleges, Trade schools, and other institutions
7.  payment for feast of the immediate family of the original band holder in government
hospitals 
Section 19: Incentives for voluntary offers for sale
1.  documentary requirements for voluntary offer to sell 
1. title or proof of ownership
2.   tax declaration
3.  approved survey plan
b.  if the landowner fails to submit the documentary requirement the land will be subjected to compulsory
acquisition

Section 20:  voluntary land transfer

1.  voluntary land transfer no longer allowed
1.  section 7 of the comprehensive agrarian reform law, as amended by republic act no.  9700, 
allowed voluntary land transfer up to june 30 2009 only
2.  after june 30 2009, Acquisition are limited to voluntary offer to sell and compulsory acquisition

Section 21:  payment of compensation by beneficiaries under voluntary land transfer

1.  the farmer beneficiary pay the agreed price of the land directly to the land owner

Section 22:  qualified beneficiaries 

1. who are eligible to become an agrarian reform beneficiary
 1.   a person must be a lot less resident of the same barangay, Or of the same municipality
2.  landless resident is a farmer or tiller who owns less than 3 hectares of land. it could refer to any
of the following
1. Agricultural lessee and share tenants
2.  regular farm workers
3.  seasonal farm workers
4.  other farm workers
5.  actual tillers for occupants of public lands
6.  collective or cooperative of the above beneficiaries
7.  others directly working on the land
b.  qualifications of an agrarian reform beneficiary
i.  filipino citizen
ii.  president of the barangay or municipality where to land holding is located
iii.  at least 15 years old at the time of the identification, screening and selection 
iv. Willing,  able, and equipped with  aptitude to cultivate and make the land productive
b.  a special qualifications for farm workers in commercial farm plantation
i.  if they were already employed as of june 15  1988 in the land holding covered by the
comprehensive agrarian reform law
b.  managerial farmworkers not qualified to become beneficiaries
i.  Exception:  farmworkers promoted to managerial or supervisory position after they were
identified,  screened, and selected will remain as qualified agrarian reform beneficiaries
b.  disqualified to become agrarian reform beneficiaries
i.  those who do not meet the basic qualifications
ii.  those who have waive their right to become an agrarian reform beneficiary and exchange for
compensation
iii.  those who have not paid an aggregate of three annual amortisation 
iv. Those who have failed to exercise right of redemption within two years resulting in the
foreclosure of mortgage by the landbank of the philippines of a previously awarded land
v.  those  who  refuse three annual  amortisation for land acquired through voluntary land transfer
or direct payment scheme,  resulting in the rep possession by the landowner 
vi.  those who have been dismissed for a cause
vii.  those who have obtained substantially equivalent  employment
viii.  zozo have retired or voluntary resigned from their employment
ix.  those who have misused the land or diverted the financial support services extended by the
government
x.  those who have misrepresented material facts in their basic qualification
xi.  those who have sold, the, or abandoned the land awarded to them by the government
xii.  those who have converted agricultural lands to non-agricultural used without prior approval of
the department of agrarian reform
xiii.  those who have  been finally adjudged guilty of forcible entry or unlawful detainer over the
property
xiv.  those who have violated agrarian reform laws
Section 22-A Order of Priority
1.  order of distribution
1.  children of the land owner enjoy first preference in the distribution of the land holdings
2.  each child is entitled to 3 hectares if he is
1.  15 years old
2.  actually tilling the land or directly managing it
ii.  after the children the covered landholdings will be distributed to the following
1.  seasonal farm workers
2.   other farm workers
3.  actual tailors or occupants of public lands
4.  collective or cooperatives of the above beneficiary
5.  others directly working the land
Section 23: Distribution Limit
1. maximum area that can be covered by 4 awarded to beneficiaries
 1.  3 hectares
2.  therefore, if a tenant or farm worker already owns two hectares of the agricultural land, he can
still be awarded 1 hectare
3.  if the particular landholding is not enough to meet a 3 hectare award ceiling for each
agricultural lessee or tenant, the area to be distributed to them will be based on the actual size
of tillage by each lessee or tenant
4.  if the land holding is more than enough to accommodate the three    hectares limit for each
other agricultural lessee or tenant,  the excess will be distributed to agrarian reform beneficiaries
in the following order of priority
1.  seasonal farm workers
2.  other farm workers
3.  actual tillers or occupants of public lands
4.  collective or cooperatives of the above beneficiary
ii.  if it is not economically feasible and sound to divide the excess land to the seasonal or other
farm workers, the following criteria for  prioritization shall be observed
1.   willingness, aptitude, and ability to cultivate and make the land productive
2.  physical capacity
3.  length of service
ii.  if the seasonal or other farmworkers equally meet the foregoing criteria, priority shall be given
to those have continuously work on the subject landholdings. the other farm workers who
cannot be accommodated will be put in a wait list in potential beneficiaries in elder landholdings
iii.  if the beneficiary opt  for collective ownership, the total area must coincide with the total number
of members or co-owners multiplied by the 3 hectares limit
b.  factors to be considered in determining the size of the land awarded
i.  type of crop 
ii.  type of soil
iii.  weather patterns
iv.  other pertinent factors critical for the success of the beneficiary
Section 24:  award to beneficiaries
1.  transfer of ownership to the beneficiary is not  automatic
1.  compulsory acquisition does not mean automatic transfer of ownership of the land.
2.  title and ownership over the land can be transferred to the beneficiary only a fun full payment of
the just compensation to the landowners
b.  when does the door issue a certificate of land ownership award?
1.  upon full payment of amortization by the farmer beneficiary
2.  the CLOA  becomes the basis for the so once in his name of an original or transfer certificate of
title
b.  cloa is indefeasible
1. CLOAs  our titles broth under the operation of the torrens system
2.  the are  conferred with the same and the indefeasibility  and security as provided by law.
CLOAs  and other titles issued under the carrion reform program becomes indefeasible  and
imprescriptible after one year from its registration with the office of the registry of deeds, subject
to conditions, limitations, and qualifications under carl, the property registration, and
b.  cancellation of cloas
1.  all cases involving the cancellation of titles issued under the clarion reform program or within
the exclusive and original jurisdiction of the secretary of the department of   agrarian reform
b.  grounds for cancellation of cloas
1.  abandonment of the land
2.  neglect or misuse of land
3.  failure to pay 3 annual amortization 
4. Misuse or they version of financial and support services
5.  sale, transfer or conveyance of the right to use the land
6.  illegal conversion of the land
b.  when will  the rights and obligation of beneficiaries comments
1.  from the receipt of a duly registered CLOA  and their actual physical possession of the awarded
land
 2.  pending issuance of CLOA,  the identified and qualified agrarian reform beneficiaries have
usufructuary rights over the awarded land which the department of agrarian reform has taken
possession
b.  obligations of agrarian reform beneficiaries
1.  exercise due diligence in the use, cultivation, and maintenance of the land, including
improvements thereon
2.  pay the landbank 30 annual amortization with 6% interest per annum
3.  the interest  per annum
NOTE:  the amortization will start one year from the date of the registration of the  CLOA. 
however, if actual occupancy of the land takes place after the registration of the cloa, the one-
year period shall be reckoned from constructive occupation of the land by the beneficiary 

Section 25: award ceilings for beneficiaries

1.  individual titles for every beneficiaries
1.  general rule:  the land should be awarded to the individual farmer beneficiary it should be
covered by an individual title
2.  exception: if the beneficiary opt for collective ownership
b.  conditions for issuance of collective titles
1.  the farm management system of the land covered is not appropriate for individual farming
2.  the forum labor system is a specialized
3.  the beneficiaries or currently not forming individual parcels but collectively work on large
contiguous areas
4.  different consists of multiple crops being farmed or an integrated manner of or includes non
crop production areas that are necessary for the viability of farm  operations 
b.  title must indicate it as an  emancipation patent or certificate of land ownership award 
1.  the subsequent transfer title was also indicate that it is an emancipation patent or a certificate
of land ownership award
Section 26: Payment by Beneficiaries:
1.  schedule of payment
1.  the cause of the awarded land is payable to the land bank in 30 annual amortization with 6%
interest per annum
2.  payment starts 1 year from
1.  the date of registration of the certificate of land ownership award
2.  the date of  act actual  occupancym if the occupancy took place after the registration of
the cloa
b.  basis of amortisation:
i.  the maximum amortization is 5% of the annual gross production established by the department
of agrarian reform
ii.  after the fifth year, the interest rate and/or  the principal  obligation may be reduced by the land
bank to make the repayment  affordable
1.  if due to failure of production, rescheduled annual payments exceed 10% of the annual
gross production
2.  the failure to produce is not due to the beneficiaries fault
b.  effect of failure to pay the amortization 
i. If the beneficiary is filled to pay 3 annual amortization, the land bank can forfeit the land holding
and award it to other qualified beneficiaries
ii.  the beneficiary whose land has been foreclosed or forfeited will be permanently disqualified
from becoming a beneficiary
iii.  the beneficiary whose land has been foreclosed or forfeited will be permanently disqualified
from becoming a beneficiary 
Section 27: Transferability of the warded land
1.  sale or transfer of awarded lands prohibited
1.  agrarian reform beneficiaries cannot, within a period of 10 years, sell or transfer ownership of
the land of word that to them
2.  Exception
1.  hereditary succession
 2.  to the government
3.  the land bank of the philippines
4.  so other qualified beneficiary
b.  meaning of hereditary succession:  means succession by intestate succession or by will to the
compulsory heirs. it does not pertain to succession to other person.  the prohibition against transfer to
other person than the ears of the durian reform beneficiary stems from the policy of the government to
develop generations of farmers to attain its avowal  go to have an adequate and sustained agricultural
production with certitude. Such  objective will not see the light of the days if lands covered by agraria
deform can easily be converted to non agricultural purposes
c.  effect of sale or transfer to the government or the land bank
i.  the children or the spouse of the transferor can we purchase the land within two years from the
date of transfer
b.  can a beneficiary who has not fully paid the amortization sell the land to the other
i.  yes only under the following conditions
1.  approval of the department of agrarian reform must be obtained first
2.  the land should be sold only to an heir of the beneficiary or to any other qualified
beneficiary
3.  the transferee  must undertake to cultivate the land himself, otherwise the land bank will
take the land for proper disposition
ii.  if the sale or transfer complies with the foregoing condition the landbank will compensate the
beneficiary and one lump sum for the amount he has already paid, together with the value of
improvements he has made on the land
b.  can the beneficiary list the land to another person
i.  what the law prohibits is the transfer of ownership, not transfer of possession
ii.  the beneficiary can list the land to another person, provided that the knees is also for
agricultural purposes .
iii. if the lease is for non agricultural purposes, the beneficiary must seek the approval of the
department of agrarian reform
b.  can the beneficiary list land to former land owner
i.  yes, only after obtaining approval from the department of agrarian reform through the 
provincial agrarian reform coordinating committee
Section 28: standing crops at the time of acquisition
1.  the land owner retains his right over crops not yet  harvested at the time the department of agrarian
reform to possession of the land
Section 29:   farms  owned or operated by corporations or other business associations
1.  modes of distribution
1.  direct or indirect
b.  as a rule,  corporate farms are to be distributed directly to the individual  worker beneficiaries
c.  if it is not economically feasible and sound to divide the land,  then it's show me distributed indirectly to
the worker beneficiary through workers cooperative or association
d.  collective ownership is sanction by the constitution. this is in recognition of the fact that land reform me
become successful even if it is done through the medium of juridical entities composed by the farmers

Section 30:  home lots and farm lots for members of  cooperatives
1.  entitlement to home lot and small farm lot