Review Notes—Agrarian Law
What are corporate farms?
What are the two modes of distribution of
corporate farms?
What is the minimum condition when the
corporate farm is distributed indirectly?
What are the two schemes available to
corporate landowners under Section 31?
Are these schemes still operative?
What are the issues in the Hacienda
Luisita case?
In Hacienda Luisita, does the Presidential
Agrarian Reform Council have the
authority to nullify or revoke the Stock
Distribution Option Agreement?
Farms owned or operated by
corporations or other business
associations.
Direct and indirect.
As a rule, corporate farms must be
distributed directly to the individual
worker-beneficiaries. However, when it is
not economically feasible and sound to
divide the lands, they must be distributed
indirectly to the worker's cooperative or
association as a form of collective
ownership.
The worker-beneficiaries must be
provided with home lots and small farm
lots for their family use, to be taken from
the land owned by their cooperative or
association.
Voluntary land transfer and stock
distribution.
They are no longer operative after 30
June 2009 because of an amendatory
law. At present, only voluntary offer to sell
and compulsory acquisition are available.
1. Does the Presidential Agrarian Reform
Council have the authority to nullify or
revoke the Stock Distribution Option
Agreement?
2. Is the PARC correct in nullifying or
revoking the SDOA?
3. Is the PARC correct in including under
the agrarian reform the lands which the
Rizal Commercial Banking Corporation
and Luisita Industrial Park Corporation
from the Hacienda Luisita Inc.?
4. Should the 80.51 hectares transferred
to the government for the construction of
the SCTEx be excluded from the agrarian
reform?
Yes, under the doctrine of necessary
implication, a statute implies as much a
part of it as that which it expresses. Here,
the express grant of power by the law to
 Review Notes—Agrarian Law
In Hacienda Luisita, is the PARC correct
in nullifying or revoking the SDOA?
In Hacienda Luisita, is the PARC correct
in including under the agrarian reform the
lands which the Rizal Commercial
Banking Corporation and Luisita
Industrial Park Corporation from the
Hacienda Luisita Inc.?
In Hacienda Luisita, should the 80.51
hectares transferred to the government
for the construction of the SCTEx be
excluded from the agrarian reform?
Distinguish stock distribution scheme
from production-sharing plan.
the DAR to approve the stock distribution
scheme of corporate landowners
necessarily includes the power to revoke
it.
Yes, because (1) Hacienda Luisita failed
to comply with its obligation under the
SDOA to provide homelots to the
beneficiaries and (2) it violated DAR's
Administrative Order as regards equal
stock distribution to the original
beneficiaries when it made such
distribution contingent on their man days
worked.
However, the DAR must pay just
compensation to Hacienda Luisita with
respect to the homelots already awarded
before the revocation of the SDOA.
No, RCBC and LIPC are innocent
purchasers for value and in good faith
whose rights must be respected.
However, Hacienda Luisita must pay the
beneficiaries for the value of the land it
sold to RCBC and LIPC to which they are
entitled under the agrarian reform
program.
Yes, because the transfer was an
exercise of the power of eminent domain.
However, Hacienda Luisita must pay the
beneficiaries for the value of the land
expropriated to which they are entitled
under the agrarian reform program.
Stock distribution is an optional scheme
available to corporate farms in which
equity shares are issued, instead of
physical land distribution, to the qualified
beneficiaries.
Production and profit sharing, on the
other hand, is a mandatory scheme to
corporate farms under lease or
management contract in which the
qualified beneficiaries will have a
percentage share in the gross sales or
net profit of the production while the land
transfer is still pending.
 Review Notes—Agrarian Law
Is the mandatory production-and-profit
sharing scheme applicable to corporate
farms involved in livestock, poultry and
swine?
What are the percentage shares in the
production-sharing plan?
How much incentive must be given to
regular fishpond or prawn farmworkers?
Is this applicable to agricultural lands
which are later on converted to fishpond
or prawn farms?
What is the role of the Land Bank of the
Philippines under the agrarian reform
law?
How should the valuation of lands of
corporate farms awarded to the workers'
cooperative or association be determined
and considered in the share price of the
cooperative or association?
What is the remedy of the corporate
landowner who disagrees with the share
price of the workers' cooperative or
association as determined by the LBP
and accepted by the worker-
beneficiaries?
No, in Luzon Farms, the Supreme Court
held as unconstitutional to include them
in the coverage of the agrarian reform
program.
To the qualified beneficiaries—3% of the
gross sales in excess of P5 Million per
annum plus 10% of the net profit after
tax. The DAR is authorized to lower the
P5 Million ceiling.
To the managerial, supervisory and
technical group—at least 1% of the gross
sales.
Additional compensation of 7.5% of the
farm's net profit before tax.
No, unless the area converted exceeds
the retention limit of the landowner.
1. it is primarily responsible for the
determination of land valuation and
compensation for all private lands
covered by the agrarian reform program;
and
2. it is the financial intermediary for the
CARP.
In the same manner as the determination
of just compensation.
It has the right to petition the Special
Agrarian Court to resolve the issue of
valuation of the share price.
 Review Notes—Agrarian Law

Enumerate the general support and 1) Irrigation facilities, especially second

coordinative services. crop or dry season irrigation facilities;

2) Infrastructure development and public

works projects in areas and settlements
that come under agrarian reform, and for
this purpose, the preparation of the
physical development plan of such
settlements providing suitable barangay
sites, potable water and power
resources, irrigation systems and other
facilities for a sound agricultural
development plan;

3) Government subsidies for the use of

irrigation facilities;

4) Price support and guarantee for all

agricultural produce;

5) Extending to small landowners,

farmers and farmers’ organizations the
necessary credit, like concessional and
collateral-free loans, for agro-
industrialization based on social
collaterals like the guarantees of farmers’
organizations;

6) Promoting, developing and extending

financial assistance to small- and
medium-scale industries in agrarian
reform areas;

7) Assigning sufficient numbers of

agricultural extension workers to farmers’
organizations;

8) Undertake research, development and

dissemination of information on agrarian
reform and low-cost and ecologically
sound farm inputs and technologies to
minimize reliance on expensive and
imported agricultural inputs;

9) Development of cooperative
management skills through intensive
training;
 Review Notes—Agrarian Law

10) Assistance in the identification of

ready markets for agricultural produce
and training in other various aspects of
marketing; and

11) Administration, operation,

management and funding of support
services, programs and projects including
pilot projects and models related to
agrarian reform as developed by the
DAR.

Enumerate the support services to the (a) Land surveys and titling;
beneficiaries.
(b) Liberalized terms on credit facilities
and production loans;

(c) Extension services by way of planting,

cropping, production and post-harvest
technology transfer, as well as marketing
and management assistance and support
to cooperatives and farmers’
organizations;

(d) Infrastructure such as access trails,

mini-dams, public utilities, marketing and
storage facilities; and

(e) Research, production and use of

organic fertilizers and other local
 Review Notes—Agrarian Law
Enumerate the support services to the
landowners.
Why is the DAR mandated to carry out
land consolidation project?
What is the principle in the special area of
concern in subsistence fishing?
substances necessary in farming and
cultivation.
(a) Investment information, financial and
counseling assistance;
(b) Facilities, programs and schemes for
the conversion or exchange of bonds
issued for payment of the lands acquired
with stocks and bonds issued by the
National Government, the Central Bank
and other government institutions and
instrumentalities;
(c) Marketing of LBP bonds, as well as
promoting the marketability of said bonds
in traditional and non-traditional financial
markets and stock exchanges; and
(d) Other services designed to utilize
productively the proceeds of the sale of
such lands for rural industrialization.
to
1. promote equal distribution of
landholdings,
2. provide the needed infrastructures in
agriculture, and
3. conserve soil fertility and prevent
erosion.
Small fisherfolk, including seaweed
farmers, shall be assured of greater
 Review Notes—Agrarian Law
What is the principle in the special area of
concern in logging and mining
concessions?
What is the principle in the special area of
concern in sparsely occupied agricultural
lands of the public domain?
What are the conditions with regard to
the lease of uncultivated lands of the
public domain to interested and qualified
parties?
What is the principle in the special area of
concern in idle, abandoned, foreclosed
and sequestered lands?
access to the utilization of water
resources.
Logging, mining and pasture areas shall
be opened up for agrarian settlements
whose beneficiaries shall be required to
undertake reforestation and conservation
production methods, on the following
conditions—
1. they are determined as suitable areas
by the Department of Environment and
Natural Resources (DENR) upon
consideration of the requirement of a
balanced ecology and conservation of
water resources;
2. settlers and members of tribal
communities shall be allowed to enjoy
and exploit the products of the forest
other than timber within the logging
concessions under existing laws, rules
and regulations.
They shall be surveyed, proclaimed and
developed as farm settlements for
qualified landless people based on an
organized program to ensure their orderly
and early development.
1. prior rights of qualified beneficiaries
must be respected;
2. parties who will engaged in the
development of capital-intensive,
traditional or pioneering crops will be
given priority;
3. the lease period must be proportionate
to the amount of investment and
production goals of the lessee but only for
a maximum of 50 years; and
4. there must be a system of evaluation
and audit.
They shall be planned for distribution as
home lots and family-size farmlots to
actual occupants. If land area permits,
other landless families shall be
accommodated in these lands.
 Review Notes—Agrarian Law
What is the principle in the special area of
concern of rural women?
What is the principle in the special area of They, their surviving spouses and
concern of landless veterans and
retirees?
What is the principle in the special area of They shall be assisted by the
concern of landless agriculture
graduates?
How should the CARP be implemented?
What is the composition of the PARC?
They are guaranteed and assured of
1. equal right to ownership of the land,
2. equal shares of the farm’s produce,
and
3. representation in advisory or
appropriate decision-making bodies.
orphans, shall be given due consideration
in the disposition of agricultural lands of
the public domain.
government, through the DAR, in their
desire to own and till agricultural lands.
On a province-by-province [basis
because of the peculiarities and needs of
each province like the kind of crops and
availability of lands.]
The Presidential Agrarian Reform Council
(PARC) shall be composed of the
President of the Philippines as Chairman,
the Secretary of Agrarian Reform as Vice-
Chairman and the following as members;
Secretaries of the Departments of
Agriculture; Environment and Natural
Resources; Budget and Management;
Local Government; Public Works and
Highways; Trade and Industry; Finance;
Labor and Employment; Director-General
of the National Economic and
Development Authority; President, Land
Bank of the Philippines; Administrator,
National Irrigation Administration; and
three (3) representatives of affected
landowners to represent Luzon, Visayas
and Mindanao; six (6) representatives of
agrarian reform beneficiaries, two (2)
each from Luzon, Visayas and Mindanao,
provided that one of them shall be from
the cultural communities.
 Review Notes—Agrarian Law
What is the function of the PARC?
What is the function of the EXCOM of the
PARC?
What is the composition of the Executive
Committee (EXCOM) of the PARC?
What is the function of the PARC
Secretariat?
What is the composition of the PARC
Secretariat?
What is the function of the PARCCOM?
The PARC shall provide the guidelines for
a province-by-province implementation of
the CARP. The ten-year program of
distribution of public and private lands in
each province shall be adjusted from year
by the province’s PARCCOM in
accordance with the level of operations
previously established by the PARC, in
every case ensuring that support services
are available or have been programmed
before actual distribution is effected.
Unless otherwise directed by the PARC,
the EXCOM may meet and decide on any
and all matters in between meetings of
the PARC; Provided, however, That its
decisions must be reported to the PARC
immediately and not later than the next
meeting.
There shall be an Executive Committee
(EXCOM) of the PARC composed of the
Secretary of the DAR as Chairman, and
such other members as the President
may designate, taking into account
Article XIII, Section 5 of the Constitution.
A PARC Secretariat is hereby established
to provide general support and
coordinative services such as inter-
agency linkages; program and project
appraisal and evaluation and general
operations monitoring for the PARC.
The Secretariat shall be headed by the
Secretary of Agrarian Reform who shall
be assisted by an Undersecretary and
supported by a staff whose composition
shall be determined by the PARC
Executive Committee and whose
compensation shall be chargeable
against the Agrarian Reform Fund. All
officers and employees of the Secretariat
shall be appointed by the Secretary of
Agrarian Reform.
The PARCCOM shall coordinate and
monitor the implementation of the CARP
in the province. It shall provide
information on the provisions of the
CARP, guidelines issued by the PARC
 Review Notes—Agrarian Law

and on the progress of the CARP in the

province.

What is the composition of the A Provincial Agrarian Reform

PARCCOM? Coordinating Committee (PARCCOM) is
hereby created in each province,
composed of a Chairman, who shall be
appointed by the President upon the
recommendation of the EXCOM, the
Provincial Agrarian Reform Officer as
Executive Officer, and one representative
each from the Departments of
Agriculture, and of Environment and
Natural Resources and from the LBP, one
representative each from existing
farmers’ organizations, agricultural
cooperatives and non-governmental
organizations in the province; two
representatives from landowners, at least
one of whom shall be a producer
representing the principal crop of the
province, and two representatives from
farmer and farmworker-beneficiaries, at
least one of whom shall be a farmer or
farmworker representing the principal
crop of the province, as members:
Provided, That in areas where there are
cultural communities, the latter shall
likewise have one representative.
 Review Notes—Agrarian Law
What is the function of the BARC?
(a) Mediate and conciliate between
parties involved in an agrarian dispute
including matters related to tenurial and
financial arrangements (within thirty (30)
days from its taking cognizance thereof. If
after the lapse of the thirty day period, it
is unable to settle the dispute, it shall
issue a certificate of its proceedings and
shall furnish a copy thereof upon the
parties within seven (7) days after the
expiration of the thirty-day period.);
(b) Assist in the identification of qualified
beneficiaries and landowners within the
barangay;
(c) Attest to the accuracy of the initial
parcellary mapping of the beneficiary’s
tillage;
(d) Assist qualified beneficiaries in
obtaining credit from lending institutions;
(e) Assist in the initial determination of the
value of the land;
(f) Assist the DAR representatives in the
preparation of periodic reports on the
CARP implementation for submission to
the DAR;
(g) Coordinate the delivery of support
services to beneficiaries; and
(h) Perform such other functions as may
be assigned by the DAR.
 Review Notes—Agrarian Law
What is the composition of the BARC?
What is the two-fold jurisdiction of the
DAR?
What is the nature of the decision of the
DAR?
a. Representative/s of farmer and farm
worker beneficiaries;
b. Representative/s of farmer and farm
worker non-beneficiaries;
c. Representative/s of agricultural
cooperatives;
d. Representative/s of other farmer
organizations;
e. Representative/s of the Barangay
Council;
f. Representative/s of non-government
organizations (NGOs);
g. Representative/s of landowners;
h. DA official assigned to the barangay;
i. DENR official assigned to the area;
j. DAR Agrarian Reform Technologist
assigned to the area who shall act as the
Secretary; and
k. Land Bank of the Philippines
representative.
1. Implementation of the agrarian reform
program—DAR Regional Office. This is
an executive function.
2. Adjudication of agrarian reform
disputes—DAR Adjudication Board,
under which are the Regional/Provincial
Agrarian Reform Adjudicators. This is a
quasi-judicial function.
The decision of the DAR is immediately
executory but appealable to the Court of
Appeals. As to the findings of fact of the
DAR, it shall be final and conclusive to
the Court of Appeals if based on
substantial evidence.
 Review Notes—Agrarian Law
What is the quasi-judicial jurisdiction of
the DARAB?
What is an agrarian dispute?
What is the quasi-judicial power of the
DARAB?
Primary and exclusive—
1. original jurisdiction to determine and
adjudicate agrarian disputes; and
2. appellate jurisdiction over the
resolutions, orders and decisions of the
Regional/Provincial Agrarian Reform
Adjudicators.
Any controversy relating to tenurial
arrangements, whether leasehold,
tenancy, stewardship or otherwise, over
lands devoted to agriculture, including
disputes concerning farmworkers’
associations or representation of persons
in negotiating, fixing, maintaining,
changing, or seeking to arrange terms or
conditions of such tenurial arrangements.
1. hear and decide all cases, disputes or
controversies within its jurisdiction;
2. summon witnesses;
3. administer oaths;
4. take testimony;
5. issue subpoena ad testificandum or
duces tecum;
6. issue writs of execution;
7. punish direct and indirect contempts.
 Review Notes—Agrarian Law

What is the jurisdiction of the PARAd? a. The rights and obligations of

persons, whether natural or juridical,
engaged in the management, cultivation,
and use of all agricultural lands covered
by R.A. No. 6657, otherwise known as
the Comprehensive Agrarian Reform Law
(CARL), as amended, and other related
agrarian laws; ACaDTH

b. The preliminary administrative

determination of reasonable and just
compensation of lands acquired under
Presidential Decree (PD) No. 27 and the
Comprehensive Agrarian Reform
Program (CARP);

c. Those cases involving the

annulment or rescission of lease
contracts or deeds of sale or their
amendments involving lands under the
administration and disposition of the DAR
or Land Bank of the Philippines (LBP),
and the amendment of titles pertaining to
agricultural lands under the
administration and disposition of the DAR
and LBP; as well as EPs issued under PD
266, Homestead Patents, Free Patents,
and miscellaneous sales patents to
settlers in settlement and re-settlement
areas under the administration and
disposition of the DAR;

d. Those cases involving the

ejectment and dispossession of tenants
and/or leaseholders;

e. Those cases involving the sale,

alienation, pre-emption, and redemption
of agricultural lands under the coverage
of the CARL, as amended or other
agrarian laws;

f. Those involving the correction,

partition, secondary and subsequent
issuances such as reissuance of
lost/destroyed owner's duplicate copy
and reconstitution of Certificates of Land
Ownership Award (CLOAs) and
Review Notes—Agrarian Law

Emancipation Patents (EPs) which are

registered with the Land Registration
Authority;

g. Those cases involving the review

of leasehold rentals and fixing of
disturbance compensation;

h. Those cases involving the

collection of amortization payments,
foreclosure and similar disputes
concerning the functions of the LBP, and
payments for lands awarded under PD
No. 27, RA No. 3844, as amended, and
R.A. No. 6657, as amended by R.A. No.
9700, and other related laws, decrees,
orders, instructions, rules, and
regulations, as well as payment for
residential, commercial, and industrial
lots within the settlement and
resettlement areas under the
administration and disposition of the
DAR;

i. Those cases involving boundary

disputes over lands under the
administration and disposition of the DAR
and the LBP, which are transferred,
distributed, and/or sold to tenant-
beneficiaries and are covered by deeds
of sale, patents, and certificates of title;

j. Those cases previously falling

under the original and exclusive
jurisdiction of the defunct Court of
Agrarian Relations under Section 12 of
PD No. 946 except those cases falling
under the proper courts or other quasi-
judicial bodies; and ACTIHa

k. Such other agrarian cases,

disputes, matters or concerns referred to
it by the Secretary of the DAR.
 Review Notes—Agrarian Law

What is the role of the RARAd? Role of the RARAD. — The RARAD shall
be the Executive Adjudicator in his
Region directly responsible to the Board.
As such, he shall:

a. Exercise administrative
supervision over the PARADs and, in the
absence of the PARAD concerned, their
personnel, which shall include, among
others, the monitoring of cases in his
Region; SDHAcI

b. Receive, hear, and adjudicate

agrarian disputes and land cases within
the Region;

c. He shall also hear the following

cases:

1. Those cases that cannot be

handled by the PARAD on account of
inhibition, disqualification or when there is
no PARAD designated in the locality;

2. Those matters of s+A46:B47uch

complexity and sensitivity that the
decision thereof would constitute an
important precedent affecting regional
interest as may be recommended by the
concerned RARAD and approved by the
Board; and

3. Preliminary determination of just

compensation within the jurisdictional
limits as stated in Rule XIX, Sec. 2 hereof;
and

4. Hear application for the issuance

of a writ of preliminary injunction and/or
temporary restraining order and such
other cases which the Board may assign.
 Review Notes—Agrarian Law
How is appeal to the DARAB made?
An appeal may be taken to the Board
from a resolution, decision or final order
of the Adjudicator that completely
disposes of the case by either or both of
the parties within a period of fifteen (15)
days from receipt of the
resolution/decision/final order appealed
from or of the denial of the movant's
motion for reconsideration by:
a. filing a Notice of Appeal together
with the Appellant's Memorandum with
the Adjudicator who rendered the
decision or final order appealed from;
b. furnishing copies of said Notice of
Appeal together with the Appellant's
Memorandum to opposing party/s and
counsel/s; and
c. paying an appeal fee of One
Thousand Pesos (PhP1,000.00) to the
DAR Cashier where the Office of the
Adjudicator is situated or through postal
money order, payable to the DAR Cashier
where the Office of the Adjudicator is
situated, at the option of the appellant.
A pauper litigant shall be exempt from the
payment of the appeal fee.
Proof of service of Notice of Appeal to the
affected parties and to the Board and
payment of appeal fee shall be filed,
within the reglementary period, with the
Adjudicator a quo and shall form part of
the records of the case.
Non-compliance with the foregoing shall
be a ground for dismissal of the appeal.
 Review Notes—Agrarian Law

According to the Supreme Court, what Issues on

are the cases in which the DARAB has no
jurisdiction? 1. ownership;

2. retention or exemption;

3. right of way;

4. identification and classification of lands

covered by the agrarian reform;

5. identification and selection of

beneficiaries.

What is the proper procedure when a As a rule, no court or prosecutor’s office

complaint which alleges agrarian dispute
where one party is a farmer, farmworker
or tenant is directly filed in the court or
prosecutor's office?
shall take cognizance of cases pertaining
to the implementation of the CARP
except those expressly provided by law.
If there is an allegation from any of the
parties that the case is agrarian in nature
and one of the parties is a farmer,
farmworker, or tenant, the case shall be
automatically referred by the judge or the
prosecutor to the DAR which shall
determine and certify within fifteen (15)
days from referral whether an agrarian
dispute exists: Provided, That from the
determination of the DAR, an aggrieved
party shall have judicial recourse.
 Review Notes—Agrarian Law
Is the certification from the BARC on an
agrarian dispute jurisdictional for the
DARAB, RARAd, PARAd?
What is the remedy of the aggrieved
party in case of an adverse ruling in an
agrarian dispute or any other matter in
the implementation of the agrarian reform
program?
Can a court issue a restraining order or
writ of preliminary injunction against the
proceedings of the PARC, DAR or its
agencies?
What is the Special Agrarian Court?
The Board or its Adjudicators shall not
take cognizance of any agrarian case,
dispute, or controversy, unless a
certification from the Barangay Agrarian
Reform Committee (BARC) of the
barangay where the land involved is
located is presented, to the effect that the
dispute has been submitted to it for
mediation or conciliation without any
success or settlement, except that the
said certification is not necessary in the
following cases: EHSCcT
a. where the issue involves the
valuation of land to determine just
compensation for its acquisition;
b. where one party in a public or
private corporation, partnership,
association or juridical person, or a public
officer or employee and the dispute
relates to the performance of his official
functions;
c. where the Secretary of the DAR
directly refers the matter to the Board or
Adjudicator; or
d. upon certification of the Municipal
Agrarian Reform Officer (MARO) or, in his
absence, the Senior Agrarian Reform
Program Technologist (SARPT) or
Agrarian Reform Program Technologist
(ARPT) of the non-existence of the BARC
or the inability of the BARC to convene.
File in the Court of Appeals a petition for
review on certiorari under Rule 43 of the
Rules of Court within fifteen (15) days
from the receipt of a copy decision, order,
award or ruling of the DAR.
No, except the Supreme Court.
It is a branch of Regional Trial Court
which has been designated by the
 Review Notes—Agrarian Law

Supreme Court to handle agrarian cases

What is the special jurisdiction of the
Special Agrarian Court?
Is the certification from the BARC on just No—BARC certification as to the
compensation jurisdictional for the
Special Agrarian Court?
When may the Special Agrarian Court
appoint commissioners?
Are interlocutory orders of the Special
Agrarian Court appealable?
Rule 43 of the Rules of Court does not
expressly mention the Special Agrarian
Court in the enumerated quasi-judicial
agencies. Does this mean that Rule 43 is under Section 60 of the CARL of 1988—
not the proper remedy in adverse
decisions of the Special Agrarian Court?
What is the remedy from an adverse
decision of the Court of Appeals on
agrarian reform cases? Is the period
extendible?
What does the CARL mandate as regards Preferential attention by all courts in the
the disposition of agrarian reform cases? Philippines, both trial and appellate.
in each province.
Original and exclusive jurisdiction over all
petitions for the determination of just
compensation to landowners, and the
prosecution of all criminal offenses under
the agrarian reform law.
determination of the just compensation is
not necessary because it is in the Special
Agrarian Court's original and exclusive
jurisdiction.
Motu proprio or at the instance of any of
the parties—to examine, investigate and
ascertain facts relevant to the dispute,
including the valuation of properties, and
to file a written report thereof with the
court.
No order of the Special Agrarian Courts
on any issue, question, matter or incident
raised before them shall be elevated to
the appellate courts until the hearing shall
have been terminated and the case
decided on the merits.
No, Rule 43 is the proper remedy even if
it does not mention the Special Agrarian
Court because it is expressly provided
"An appeal may be taken from the
decision of the Special Agrarian Courts
by filing a petition for review with the
Court of Appeals within fifteen (15) days
from receipt of notice of the decision;
otherwise, the decision shall become
final."
An appeal from the decision of the Court
of Appeals shall be by a petition for
review with the Supreme Court within a
non-extendible period of fifteen (15) days
from receipt of a copy of said decision.
 Review Notes—Agrarian Law

What are the sources of funding or “(a) Proceeds of the sales of the
appropriations for the Agrarian Reform Privatization and Management Office
Fund? (PMO);

“(b) All receipts from assets recovered

and from sales of ill-gotten wealth
recovered through the PCGG excluding
the amount appropriated for
compensation to victims of human rights
violations under the applicable law;

“(c) Proceeds of the disposition and

development of the properties of the
Government in foreign countries, for the
specific purposes of financing production
credits, infrastructure and other support
services required by this Act;

“(d) All income and collections of

whatever form and nature arising from
the agrarian reform operations, projects
and programs of the DAR and other
CARP implementing agencies;

“(e) Portion of amounts accruing to the

Philippines from all sources of official
foreign aid grants and concessional
financing from all countries, to be used
for the specific purposes of financing
productions, credits, infrastructures, and
other support services required by this
Act;

“(f) Yearly appropriations of no less than

Five billion pesos (P5,000,000,000.00)
from the General Appropriations Act;

“(g) Gratuitous financial assistance from

legitimate sources; and

(h) Other government funds not

otherwise appropriated.
 Review Notes—Agrarian Law
Where shall just compensation payments
to landowners be sourced?
Distinguish conversion from
reclassification.
Does a reclassification of an agricultural
land automatically allow a landowner to
change its use?
What should be the condition of the land
before it can be subjected to conversion?
What are the lands which are prohibited
from conversion?
That all just compensation payments to
landowners, including execution of
judgments therefor, shall only be sourced
from the Agrarian Reform Fund: Provided,
however, That just compensation
payments that cannot be covered within
the approved annual budget of the
program shall be chargeable against the
debt service program of the national
government, or any unprogrammed item
in the General Appropriations Act.
Conversion is the act of changing the
current use of a piece of agricultural land
into some other use as approved by the
DAR while reclassification is the act of
specifying how agricultural lands shall be
utilized for non-agricultural uses such as
residential, industrial, and commercial, as
embodied in the land use plan, subject to
the requirements and procedures for land
use conversion.
In Alarcon v. Court of Appeals, the
Supreme Court held that a mere
reclassification of an agricultural land
does not automatically allow a landowner
to change its use. He has to undergo the
process of conversion upon approval of
the DAR before he is permitted to use the
agricultural land for other purposes.
1. it ceased to be economically feasible
and sound for agricultural purposes, or
2. the locality has become urbanized and
the land will have a greater economic
value for residential, commercial or
industrial purposes.
1. Designated protected areas, including
mossy and virgin forests, riverbanks, and
swamp forests or marshlands;
2. All irrigated lands;
3. All irrigable lands already covered by
irrigation projects with firm funding
commitments;
 Review Notes—Agrarian Law
What are the lands which are prohibited
from conversion?
What is the scope of the DAR's
conversion authority?
4. All agricultural lands with irrigation
facilities.
1. Irrigable lands not covered by irrigation
projects with firm funding commitment;
2. Agro-industrial croplands;
3. Highlands in elevations of at least 500
meters for growing semi-temperate or
high value crops;
4. Lands within an Environmentally
Critical Area or those involving the
establishment of an Environmentally
Critical Project, subject to prior
application for Environmental Compliance
Certificate from the DENR.
DAR’s conversion authority can only be
exercised after the effectivity of Republic
Act No. 6657 on 15 June 1988, which
means that any reclassification of
agricultural lands before said date need
not have DAR approval.
 Review Notes—Agrarian Law
Who may apply for conversion?
What is the maximum period within which
the approved conversion plan should be
implemented?
What is the condition in the conversion of
public agricultural lands into fishponds
and prawn farms?
What is the condition in the conversion of
private agricultural lands into fishponds
and prawn farms?
1. Owners of private agricultural lands or
other persons duly authorized by the
landowner;
2. Beneficiaries of the agrarian reform
program after the lapse of five (5) years
from award, reckoned from the date of
the issuance of the Certificate of
Landownership Award (CLOA), and who
have fully paid their obligations and are
qualified under the rules, or persons duly
authorized by them—on the condition
that he shall invest at least ten percent
(10%) of the proceeds coming from the
conversion in government securities; and
3. Government agencies, including
government-owned or controlled
corporations, and LGUs, which own
agricultural lands as their patrimonial
property.
5 years from DAR approval; otherwise the
land will remain under the agrarian reform
program.
Only upon the declaration by the Bureau
of Fisheries and Aquatic Resources
(BFAR) that the coastal zone is suitable
for fishpond development.
As a rule, a maximum of 5 hectares of
private agricultural land may be subject to
conversion into fishponds and prawn
farms. However, it may be more than 5
hectares on the following conditions—
1. the Bureau of Fisheries and Aquatic
Resources (BFAR) has certified that it is
more economically feasible and sound for
conversion into fishpond and/or prawn
farm;
2. a simple and absolute majority of the
regular farm workers or tenants agree to
the conversion; and
3. no piecemeal conversion to circumvent
the provisions of the law shall be allowed.
 Review Notes—Agrarian Law

Is the DAR approval required for change No—The change of crops to commercial
of crops? crops or high value crops shall not be
considered as a conversion in the use or
nature of the land.
Transactions under the agrarian reform 1. capital gains tax;
program involving a transfer of
ownership, whether from natural or 2. registration fees;
juridical persons, shall be exempted
from— 3. and all other taxes and fees for the
conveyance or transfer.
May a bank acquire title from foreclosure Yes, banks may acquire title to
of mortgaged agricultural lands? If yes, is mortgaged agricultural lands regardless
there a limit to the area? of area provided they are allowed by law
to hold mortgage rights or security
interests in agricultural lands.
What is the effect on the lease, They will continue under their original
management, grower or service terms and conditions until their expiration.
contracts covering private lands which
has been transferred to qualified
beneficiaries?
What is the effect if the landowner has The mortgages and other claims shall be
mortgaged the land before it was covered assumed by the government on the
by the agrarian reform program? following conditions—

1. they must be registered with the

Register of Deeds; and

2. only to the extent of the just

compensation.
 Review Notes—Agrarian Law
What are the offenses punishable under
the CARL?
(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;
“(c) Any conversion by any landowner of
his/her agricultural land into any non-
agricultural use with intent to avoid the
application of this Act to his/her
landholdings and to dispossess his/her
bonafide tenant farmers;
“(d) The malicious and 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, except after final completion of the
appropriate conversion under Section 65
of Republic Act No. 6657, as amended.
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/she
acquired by virtue of being a beneficiary,
in order to circumvent the provisions of
this Act;
 Review Notes—Agrarian Law

“(g) The unjustified, willful, and malicious

act by a responsible officer or officers of
the government through the following:

“(1) The denial of notice and/or reply to

landowners;

“(2) The deprivation of retention rights;

“(3) The undue or inordinate delay in the

preparation of claim folders; or

“(4) Any undue delay, refusal or failure in

the payment of just compensation;

“(h) The undue delay or unjustified failure

of the DAR, the LBP, the PARC, the
PARCCOM, and any concerned
government agency or any government
official or employee to submit the
required report, data and/or other official
document involving the implementation of
the provisions of this Act, as required by
the parties or the government, including
the House of Representatives and the
Senate of the Philippines as well as their
respective committees, and the
congressional oversight committee
created herein;

“(i) The undue delay in the compliance

with the obligation to certify or attest
and/or falsification of the certification or
attestation as required under Section 7 of
Republic Act No. 6657, as amended; and

“(j) Any other culpable neglect or willful

violations of the provisions of this Act.
Section 73(e)—the sale, transfer, Yes—a bank's foreclosure sale of the
conveyance or change of the nature of mortgaged land.
lands outside of urban centers and city
limits either in whole or in part—is an
offense. Is there an exception to this?
When did the Comprehensive Agrarian 15 June 1988.
Reform Law of 1988 take effect?