1.
Constitutional Basis
Section 21, Article II
The State shall promote comprehensive rural development and
agrarian reform.
Section 1, Article XII
The goals of the national economy are a more equitable
distribution of opportunities, income, and wealth; a sustained
increase in the amount of goods and services produced by the
nation for the benefit of the people; and an expanding productivity
as the key to raising the quality of life for all, especially the
underprivileged.
The State shall promote industrialization and full employment
based on sound agricultural development and agrarian reform,
through industries that make full of efficient use of human and
natural resources, and which are competitive in both domestic and
foreign markets. However, the State shall protect Filipino
enterprises against unfair foreign competition and trade practices.
In the pursuit of these goals, all sectors of the economy and all
region s of the country shall be given optimum opportunity to
develop. Private enterprises, including corporations, cooperatives,
and similar collective organizations, shall be encouraged to
broaden the base of their ownership.
Section 3, Article XII
Lands of the public domain are classified into agricultural, forest
or timber, mineral lands and national parks. Agricultural lands of
the public domain may be further classified by law according to
the uses to which they may be devoted. Alienable lands of the
public domain shall be limited to agricultural lands. Private
corporations or associations may not hold such alienable lands of
the public domain except by lease, for a period not exceeding
twenty-five years, renewable for not more than twenty-five years,
and not to exceed one thousand hectares in area. Citizens of the
Philippines may lease not more than five hundred hectares, or
acquire not more than twelve hectares thereof, by purchase,
homestead, or grant.
Taking into account the requirements of conservation, ecology,
and development, and subject to the requirements of agrarian
reform, the Congress shall determine, by law, the size of lands of
the public domain which may be acquired, developed, held, or
leased and the conditions therefor.
Section 4, Article XIII
The State shall, by law, undertake an agrarian reform program
founded on the right of farmers and regular farmworkers who are
landless, to own directly or collectively the lands they till or, in the
case of other farmworkers, to receive a just share of the fruits
thereof. To this end, the State shall encourage and undertake the
just distribution of all agricultural lands, subject to such priorities
and reasonable retention limits as the Congress may prescribe,
taking into account ecological, developmental, or equity
considerations, and subject to the payment of just compensation.
In determining retention limits, the State shall respect the right of
small landowners. The State shall further provide incentives for
voluntary land-sharing.
Section 5, Article XIII
The State shall recognize the right of farmers, farmworkers, and
landowners, as well as cooperatives, and other independent
farmers' organizations to participate in the planning, organization,
and management of the program, and shall provide support to
agriculture through appropriate technology and research, and
adequate financial, production, marketing, and other support
services.
Section 6, Article XIII
The State shall 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 the public domain under lease or concession suitable to
agriculture, subject to prior rights, homestead rights of small
settlers, and the rights of indigenous communities to their
ancestral lands. The State may resettle landless farmers and
farmworkers in its own agricultural estates which shall be
distributed to them in the manner provided by law.
Section 7, Article XIII
The State shall protect the rights of subsistence fishermen,
especially of local communities, to the preferential use of the
communal marine and fishing resources, both inland and offshore.
It shall provide support to such fishermen through appropriate
technology and research, adequate financial, production, and
marketing assistance, and other services. The State shall also
protect, develop, and conserve such resources. The protection shall
extend to offshore fishing grounds of subsistence fishermen
against foreign intrusion. Fishworkers shall receive a just share
from their labor in the utilization of marine and fishing resources.
Section 8, Article XIII
The State shall provide incentives to landowners to invest the
proceeds of the agrarian reform program to promote
industrialization, employment creation, and privatization of public
sector enterprises. Financial instruments used as payment for their
lands shall be honored as equity in enterprises of their choice.
Calalang v. Williams
The issue at hand is whether or not there is an undue
delegation of legislative power?
There is no undue delegation of legislative power. Commonwealth
Act 548 does not confer legislative powers to the Director of
Public Works. The authority conferred upon them and under
which they promulgated the rules and regulations now complained
of is not to determine what public policy demands but merely to
carry out the legislative policy laid down by the National
Assembly in said Act, to wit, “to promote safe transit upon and
avoid obstructions on, roads and streets designated as national
roads by acts of the National Assembly or by executive orders of
the President of the Philippines” and to close them temporarily to
any or all classes of traffic “whenever the condition of the road or
the traffic makes such action necessary or advisable in the public
convenience and interest.” The delegated power, if at all,
therefore, is not the determination of what the law shall be, but
merely the ascertainment of the facts and circumstances upon
which the application of said law is to be predicated.
To promulgate rules and regulations on the use of national roads
and to determine when and how long a national road should be
closed to traffic, in view of the condition of the road or the traffic
thereon and the requirements of public convenience and interest, is
an administrative function which cannot be directly discharged by
the National Assembly. It must depend on the discretion of some
other government official to whom is confided the duty of
determining whether the proper occasion exists for executing the
law. But it cannot be said that the exercise of such discretion is the

making of the law
Doctrine:
The delegated power, if at all, therefore, is not the determination
of what the law shall be, but merely the ascertainment of the facts
and circumstances upon which the application of said law is to be
predicated.
(a) A city or municipality may, through an ordinance passed by
the Sanggunian after conducting public hearings for the purpose,
authorize the reclassification of agricultural lands and provide for
the manner of their utilization or disposition in the following
cases:
(1) when the land ceases to be economically feasible and sound for
agricultural purposes as determined by the Department of
Agriculture or

(2) where the land shall have substantially greater economic value
for residential, commercial, or industrial purposes, as determined
by the Sanggunian concerned: Provided, That such reclassification
shall be limited to the following percentage of the total
agricultural land area at the time of the passage of the ordinance:

(1) For highly urbanized and independent component cities, fifteen

percent (15%);

(2) For component cities and first to third class municipalities, ten
percent (10%); and

(3) For fourth to sixth class municipalities, five percent(5%):

Provided, further, That agricultural lands distributed to agrarian
reform beneficiaries pursuant to Republic Act Numbered Sixty-six
hundred fifty-seven (R.A. No. 6657), otherwise known as "The
Comprehensive Agrarian Reform Law", shall not be affected by
the said reclassification and the conversion of such lands into
other purposes shall be governed by Section 65 of said Act.

(b) The President may, when public interest so requires and upon
recommendation of the National Economic and Development
Authority, authorize a city or municipality to reclassify lands in
excess of the limits set in the next preceding paragraph.
4. Land Reclassification
SECTION 20, LGC. Reclassification of Lands. (c) The local government units shall, in conformity with existing
laws, continue to prepare their respective comprehensive land use
plans enacted through zoning ordinances which shall be the
primary and 15 dominant bases for the future use of land
resources: Provided, That the requirements for food production,
human settlements, and industrial expansion shall be taken into
consideration in the preparation of such plans.
(d) Where approval by a national agency is required for
reclassification, such approval shall not be unreasonably withheld.
Failure to act on a proper and complete application for
reclassification within three (3) months from receipt of the same
shall be deemed as approval thereof.
(e) Nothing in this Section shall be construed as repealing,
amending, or modifying in any manner the provisions of R.A. No.
6657.
Section 2, R.A. 6657 - Declaration of Principles and Policies.
It is the policy of the State to pursue a Comprehensive Agrarian
Reform Program (CARP). The welfare of the landless farmers and
farmworkers will receive the highest consideration to promote
social justice and to move the nation toward sound rural
development and industrialization, and the establishment of owner
cultivatorship of economic-size farms as the basis of Philippine
agriculture.
To this end, a more equitable distribution and ownership of land,
with due regard to the rights of landowners to just compensation
and to the ecological needs of the nation, shall be undertaken to
provide farmers and farmworkers with the opportunity to enhance
their dignity and improve the quality of their lives through greater
productivity of agricultural lands.
The agrarian reform program is founded on the right of farmers
and regular farmworkers, who are landless, to own directly or
collectively the lands they till or, in the case of other farm
workers, to receive a just share of the fruits thereof. To this end,
the State shall encourage and undertake the just distribution of all
agricultural lands, subject to the priorities and retention limits set
forth in this Act, having taken into account ecological,
developmental, and equity considerations, and subject to the
payment of just compensation. The State shall respect the right of
small landowners, and shall provide incentives for voluntary land-
sharing.
The State shall recognize the right of farmers, farmworkers and
landowners, as well as cooperatives and other independent
farmers’ organizations, to participate in the planning, organization,
and management of the program, and shall provide support to
agriculture through appropriate technology and research, and
adequate financial production, marketing and other support
services.
The State shall 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 the public domain, under lease or concession, suitable to
agriculture, subject to prior rights, homestead rights of small
settlers and the rights of indigenous communities to their ancestral
lands.
The State may resettle landless farmers and farmworkers in its
own agricultural estates, which shall be distributed to them in the
manner provided by law.
By means of appropriate incentives, the State shall encourage the
formation and maintenance of economic-size family farms to be

constituted by individual beneficiaries and small landowners.
The State shall protect the rights of subsistence fishermen,
especially of local communities, to the preferential use of
communal marine and fishing resources, both inland and offshore.
It shall provide support to such fishermen through appropriate
technology and research, adequate financial, production and
marketing assistance and other services. The State shall also
protect, develop and conserve such resources. The protection shall
extend to offshore fishing grounds of subsistence fishermen
against foreign intrusion. Fishworkers shall receive a just share
from their labor in the utilization of marine and fishing resources.
The State shall be guided by the principles that land has a social
function and land ownership has a social responsibility. Owners of
agricultural lands have the obligation to cultivate directly or
through labor administration the lands they own and thereby make
the land productive.
The State shall provide incentives to landowners to invest the
proceeds of the agrarian reform program to promote
industrialization, employment and privatization of public sector
enterprises. Financial instruments used as payment for lands shall
contain features that shall enhance negotiability and acceptability
in the marketplace.
The State may lease undeveloped lands of the public domain to
qualified entities for the development of capital intensive farms,
and traditional and pioneering crops especially those for exports
subject to the prior rights of the beneficiaries under this Act.
Section 2, R.A. 9700 - Declaration of Principles and Policies.
It is the policy of the State to pursue a Comprehensive Agrarian
Reform Program (CARP). The welfare of the landless farmers and
farmworkers will receive the highest consideration to promote
social justice and to move the nation toward sound rural
development and industrialization, and the establishment of owner
cultivatorship of economic-size farms as the basis of Philippine
agriculture.
The State shall promote industrialization and full employment
based on sound agricultural development and agrarian reform,
through industries that make full and efficient use of human and
natural resources, and which are competitive in both domestic and
foreign markets: Provided, That the conversion of agricultural
lands into industrial, commercial or residential lands shall take
into account, tillers' rights and national food security. Further, the
State shall protect Filipino enterprises against unfair foreign
competition and trade practices.
The State recognizes that there is not enough agricultural land to
be divided and distributed to each farmer and regular farmworker
so that each one can own his/her economic-size family farm. This
being the case, a meaningful agrarian reform program to uplift the
lives and economic status of the farmer and his/her children can
only be achieved through simultaneous industrialization aimed at
developing a self-reliant and independent national economy
effectively controlled by Filipinos.
To this end, the State may, in the interest of national welfare or
defense, establish and operate vital industries.
A more equitable distribution and ownership of land, with due
regard to the rights of landowners to just compensation, retention
rights under Section 6 of Republic Act No. 6657, as amended, and
to the ecological needs of the nation, shall be undertaken to
provide farmers and farmworkers with the opportunity to enhance
their dignity and improve the quality of their lives through greater
productivity of agricultural lands.
The agrarian reform program is founded on the right of farmers
and regular farmworkers, who are landless, to own directly or
collectively the lands they till or, in the case of other farmworkers,
to receive a just share of the fruits thereof. To this end, the State
shall encourage and undertake the just distribution of all
agricultural lands, subject to the priorities and retention limits set
forth in this Act, taking into account ecological, developmental,
and equity considerations, and subject to the payment of just
compensation. The State shall respect the right of small
landowners, and shall provide incentive for voluntary land-
sharing.
As much as practicable, the implementation of the program shall
be community-based to assure, among others, that the farmers
shall have greater control of farmgate prices, and easier access to
credit.
The State shall recognize the right of farmers, farmworkers and
landowners, as well as cooperatives and other independent
farmers’ organizations, to participate in the planning, organization,
and management of the program, and shall provide support to
agriculture through appropriate technology and research, and
adequate financial, production, marketing and other support
services.
The State shall recognize and enforce, consistent with existing
laws, the rights of rural women to own and control land, taking
into consideration the substantive equality between men and
women as qualified beneficiaries, to receive a just share of the
fruits thereof, and to be represented in advisory or appropriate
decision-making bodies. These rights shall be independent of their
male relatives and of their civil status.
The State shall 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 the public domain, under lease or concession, suitable to
agriculture, subject to prior rights, homestead rights of small
settlers and the rights of indigenous communities to their ancestral
lands.
The State may resettle landless farmers and farm workers in its
own agricultural estates, which shall be distributed to them in the
manner provided by law.
By means of appropriate incentives, the State shall encourage the
formation and maintenance of economic-size family farms to be
constituted by individual beneficiaries and small landowners.
The State shall protect the rights of subsistence fishermen,
especially of local communities, to the preferential use of
communal marine and fishing resources, both inland and offshore.
It shall provide support to such fishermen through appropriate
technology and research, adequate financial, production and
marketing assistance and other services. The State shall also
protect, develop and conserve such resources. The protection shall
extend to offshore fishing grounds of subsistence fishermen
against foreign intrusion. Fishworkers shall receive a just share
from their labor in the utilization of marine and fishing resources.
The State shall be guided by the principles that land has a social
function and land ownership has a social responsibility. Owners of
agricultural land have the obligation to cultivate directly or
through labor administration the lands they own and thereby make
the land productive.
The State shall provide incentives to landowners to invest the
proceeds of the agrarian reform program to promote
industrialization, employment and privatization of public sector
enterprises. Financial instruments used as payment for lands shall
contain features that shall enhance negotiability and acceptability
in the marketplace.
The State may lease undeveloped lands of the public domain to
qualified entities for the development of capital-intensive farms,
and traditional and pioneering crops especially those for exports
subject to the prior rights of the beneficiaries under this Act."
MEMORANDUM CIRCULAR NO. 54
SECTION 1. Scope and limitations. – (a) Cities and
municipalities with comprehensive land use plans reviewed and
approved in accordance with EO 72 (1993), may authorize the
reclassification of agricultural lands into non-agricultural uses and
provide for the manner of their utilization or disposition, subject to
the limitations and other conditions prescribed in this Order.
(b) Agricultural lands may be reclassified in the following cases:
(1) when the land ceases to be economically feasible and sound for
agricultural purposes as determined by the Department of
Agriculture (DA), in accordance with the standards and guidelines
prescribed for the purpose; or
(2) where the land shall have substantially greater economic value
for residential, commercial, or industrial purposes as determined
by the sanggunian concerned, the city/municipality concerned
should notify the DA, HLRB, DTI, DOT and other concerned
agencies on the proposed reclassification of agricultural lands
furnishing them copies of the report of the local development
council including the draft ordinance on the matter for their
comments, proposals and recommendations within seven (7) days
upon receipt.
(c) However, such reclassification shall be limited to a maximum
of the percentage of the total agricultural land of a city or
municipality at the time of the passage of the ordinance as follows:
(1) For highly urbanized and independent component cities, fifteen
percent (15%);
For component cities and first to third class municipalities, ten
percent (10%); and
For fourth to sixth class municipalities, five percent (5%).
(d) In addition, the following types of agricultural lands shall not
be covered by the said reclassification:
(1) Agricultural lands distributed to agrarian reform beneficiaries
subject to Section 65 of RA 6657;
(2) Agricultural lands already issued a notice of coverage or
voluntarily offered for coverage under CARP.
(3) Agricultural lands identified under AO 20, s. of 1992, as non-
negotiable for conversion as follows:
(i) All irrigated lands where water is available to support rice and
other crop production;
All irrigated lands where water is not available for rice and other
crop production but within areas programmed for irrigation
facility rehabilitation by DA and National Irrigation
Administration (NIA); and
All irrigable lands already covered by irrigation projects with firm
funding commitments at the time of the application for land
conversion or reclassification.
(e) The President may, when public interest so requires and upon
recommendation of the National Economic Development
Authority (NEDA), authorize a city or municipality to reclassify
lands in excess of the limits set in paragraph (d) hereof. For this
purpose, NEDA is hereby directed to issue the implementing
guidelines governing the authority of cities and municipalities to
reclassify lands in excess of the limits prescribed herein.
SEC. 2. Requirements and procedures for reclassification. (a)
The city or municipal development council (CDC/MDC) shall
recommend to the sangguniang panlungsod or sangguniang bayan,
as the case may be, the reclassification of agricultural lands within
its jurisdiction based on the requirements of local development.
(b) Prior to the enactment of an ordinance reclassifying
agricultural lands as provided under Sec. 1 hereof, the sanggunian
concerned must first secure the following certificates from the
concerned national government agencies (NGAs):
(1) A certification from DA indicating –
(i) the total area of existing agricultural lands in the LGU
concerned;
(ii) that such lands are not classified as non-negotiable for
conversion or reclassification under AO 20 (1992); and
(iii) that the land ceases to be economically feasible and sound for
agricultural purposes in the case of Sec. 1 (b-1).
(2) A certification from DAR indicating that such lands are not
distributed or not covered by a notice of coverage or not
voluntarily offered for coverage under CARP.
(c) The HLRB shall serve as the coordinating agency for the
issuance of the certificates as required under the preceding
paragraph. All applications for reclassification shall, therefore, be
submitted by the concerned LGUs to the HLRB, upon receipt of
such application, the HLRB conduct initial review to determine if:
(1) the city or municipality concerned has an existing
comprehensive land use plan reviewed and approved in
accordance with EO 72 (1993); and
(2) the proposed reclassification complies with the limitations
prescribed in SECTION 1 (d) hereof.
Upon determination that the above conditions have been satisfied,
the HLRB shall then consult with the concerned agencies on the
required certifications. The HLRB shall inform the concerned
agencies, city or municipality of the result of their review and
consultation. If the land being reclassified is in excess of the limit,
the application shall be submitted to NEDA.
Failure of the HLRB and the NGAs to act on a proper and
complete application within three months from receipt of the same
shall be deemed as approved thereof.
(d) Reclassification of agricultural lands may be authorized
through an ordinance enacted by the sangguniang panlungsod or
sangguniang bayan, as the case may be, after conducting public
hearings for the purpose. Such ordinance shall be enacted and
approved in accordance with Articles 107 and 108 of the IRR of
the LGC;
(e) Provisions of Sec. 1 (b-2) hereof to the contrary
notwithstanding, the sanggunian concerned shall seek the advice
of DA prior to the enactment of an ordinance reclassifying
agricultural lands. If the DA has failed to act on such request
within thirty (30) days from receipt thereof, the same shall be
deemed to have been complied with. Should the land subject to
reclassification is found to be still economically feasible for
agriculture, the DA shall recommend to the LGU concerned
alternative areas for development purposes.
(f) Upon issuance of the certifications enumerated in Section 2 (b)
hereof, the sanggunian concerned may now enact an ordinance
authorizing the reclassification of agricultural lands and providing
for the manner their utilization or disposition. Such ordinance
shall likewise update the comprehensive land use plans of the
LGU concerned.
SEC. 3. Review of ordinances reclassifying agricultural
lands. – All ordinances authorizing the reclassification of
agricultural lands shall be subject to the review and approval by
the province in the case of component city or municipality, or by
HLRB in the case of a highly urbanized or independent
component city in accordance with EO 72 (1993).
SEC. 4. Use of the comprehensive land use plans and
ordinances as primary reference documents in land use
conversions. – Pursuant to RA 6657 and EO 129-A, actions on
applications for land use conversions on individual landholdings
shall remain as the responsibility of DAR, which shall utilize as its
primary reference documents the comprehensive land use plans
and accompanying ordinance passed upon and approved by the
LGUs concerned, together with the National Land Use Policy.
SEC. 5. Monitoring and evaluation of land reclassification by
LGUs concerned. – Within six (6) months from the issuance of
this Order, the HLRB shall design, in coordination with DA,
DAR, Department of the Interior and Local Government (DILG),
NEDA, League of Provinces, League of Cities and League of
Municipalities, and install a monitoring and evaluation system for
the reclassification of agricultural lands authorized by cities and
municipalities.
The HLRB shall submit semestral reports to the Office of the
President. A copy thereof shall be furnished the DA, DAR, DILG,
NEDA, League of Provinces, League of Cities, and League of
Municipalities.
SEC. 6. Transitory provision. – Provisions of Secs. 1 (a) and 2
(b) to the contrary notwithstanding, cities and municipalities with
land use plans approved not earlier than 01 January 1989, may
authorize the reclassification of agricultural lands in accordance
with the limitations and conditions prescribed in this Order.
However, when the LGU has not reclassified up to the said
limitations, further reclassification may be exercised only within
five years from the approval of the plan. Thereafter, all
reclassifications shall require approval from the President pursuant
to Sec. 1 (e) of this Circular.
SEC. 7. Effectivity. -.This Circular shall take effect immediately.
Association of Small Landowners v. Secretary of Agrarian
Reform
CREBA v. Secretary of Agrarian Reform
5. Components of Agrarian Reform
Section 3(a.), R.A. 6657
Agrarian Reform means the redistribution of lands, regardless of
crops or fruits produced to farmers and regular farmworkers 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 arrangements
alternative to the physical redistribution of lands, such as
production or profit-sharing, labor administration, and the
distribution of shares of stocks, which will allow beneficiaries to
receive a just share of the fruits of the lands they work.
Section 3(a.), R.A. 9700 – no amendment, same definition.
6.Manner of Acquisition (Compulsory Acquisition, Voluntary
Offer to Sell Stock Distribution Option)
SECTION 16, R.A. 6657. Procedure for Acquisition of Private
Lands.
For purposes of acquisition of private lands, the following
procedures shall be followed:
(a) After having identified the land, the landowners and the
beneficiaries, the DAR shall send its notice to acquire the land to
the owners thereof, by personal delivery or registered mail, and
post the same in a conspicuous place in the municipal building and
barangay hall of the place where the property is located. Said
notice shall contain the offer of the DAR to pay a corresponding
value in accordance with the valuation set forth in Sections 17, 18,
and other pertinent provisions hereof.
(b) Within thirty (30) days from the date of receipt of written
notice by personal delivery or registered mail, the landowner, his
administrator or representative shall inform the DAR of his
acceptance or rejection of the offer.
(c) If the landowner accepts the offer of the DAR, the Land Bank
of the Philippines (LBP) shall pay the landowner the purchase
price of the land within thirty (30) days after he executes and
delivers a deed of transfer in favor of the Government and
surrenders the Certificate of Title and other monuments of title.
(d) In case of rejection or failure to reply, the DAR shall conduct
summary administrative proceedings to determine the
compensation for the land by requiring the landowner, the LBP
and other interested parties to submit evidence as to the just
compensation for the land, within fifteen (15) days from the
receipt of the notice. After the expiration of the above period, the
matter is deemed submitted for decision. The DAR shall decide
the case within thirty (30) days after it is submitted for decision.
(e) Upon receipt by the landowner of the corresponding payment
or, in case of rejection or no response from the landowner, upon
the deposit with an accessible bank designated by the DAR of the
compensation in cash or in LBP bonds in accordance with this
Act, the DAR shall take immediate possession of the land and
shall request the proper Register of Deeds to issue a Transfer
Certificate of Title (TCT) in the name of the Republic of the
Philippines. The DAR shall thereafter proceed with the
redistribution of the land to the qualified beneficiaries.
(f) Any party who disagrees with the decision may bring the
matter to the court of proper jurisdiction for final determination of
just compensation.
SECTION 19, R.A. 6657. Incentives for Voluntary Offers for
Sale.
Landowners, other than banks and other financial institutions, who
voluntarily offer their lands for sale shall be entitled to an
additional five percent (5%) cash payment.
SECTION 31, R.A. 6657. Corporate Landowners.
Corporate landowners may voluntarily transfer ownership over
their agricultural landholdings to the Republic of the Philippines
pursuant to Section 20 hereof or to qualified beneficiaries, under
such terms and conditions, consistent with this Act, as they may
agree upon, subject to confirmation by the DAR.
Upon certification by the DAR, corporations owning agricultural
lands may give their qualified beneficiaries the right to purchase
such proportion of the capital stock of the corporation that the
agricultural land, actually devoted to agricultural activities, bears
in relation to the company’s total assets, under such terms and
conditions as may be agreed upon by them. In no case shall the
compensation received by the workers at the time the shares of
stocks are distributed be reduced. The same principle shall be
applied to associations, with respect to their equity or
participation.
Corporations or associations which voluntarily divest a proportion
of their capital stock, equity or participation in favor of their
workers or other qualified beneficiaries under this section shall be
deemed to have complied with the provisions of this Act:
Provided, That the following conditions are complied with:
a) In order to safeguard the right of beneficiaries who own shares
of stocks to dividends and other financial benefits, the books of
the corporation or association shall be subject to periodic audit by
certified public accountants chosen by the beneficiaries;
b) Irrespective of the value of their equity in the corporation or
association, the beneficiaries shall be assured of at least one (1)
representative in the board of directors, or in a management or
executive committee, if one exists, of the corporation or
association; and
c) Any shares acquired by such workers and beneficiaries shall
have the same rights and features as all other shares.
d) Any transfer of shares of stocks by the original beneficiaries
shall be void ab initio unless said transaction is in favor of a
qualified and registered beneficiary within the same corporation.
If within two (2) years from the approval of this Act, the land or
stock transfer envisioned above is not made or realized or the plan
for such stock distribution approved by the PARC within the same
period, the agricultural land of the corporate owners or corporation
shall be subject to the compulsory coverage of this Act.
Roxas v. CA
W/N the acquisition proceedings over the 3 haciendas were
valid and in accordance with the law. (NO)
In the first issue, SC held that NO. For a valid implementation of
the CAR Program, two notices are required first the Notice of
Coverage and letter of invitation to a preliminary conference sent
to the landowner, the representatives of the BARC, LBP, farmer
beneficiaries and other interested parties and second, the Notice of
Acquisition sent to the landowner under Section 16 of the CARL.
The importance of the first notice, the Notice of Coverage and the
letter of invitation to the conference, and its actual conduct cannot
be understated. They are steps designed to comply with the
requirements of administrative due process. The implementation
of the CARL is an exercise of the State’s police power and the
power of eminent domain. To the extent that the CARL prescribes
retention limits to the landowners, there is an exercise of police
power for the regulation of private property in accordance with the
Constitution. But where, to carry out such regulation, the owners
are deprived of lands they own in excess of the maximum area
allowed, there is also a taking under the power of eminent domain.
In this case, respondent DAR claims that it sent a letter of
invitation to petitioner corporation, through Jaime Pimentel, the
administrator of Hacienda Palico but he was not authorized as
such by the corporation. Why respondent DAR chose to notify
Pimentel instead of the officers of the corporation was not
explained by the said respondent.
Assuming the haciendas may be reclassified from agricultural
to non-agricultural, W/N this court has the power to rule on
this issue. (None)
For the second issue, SC held NONE. DAR's failure to observe
due process in the acquisition of petitioner's landholdings does not
ipso facto give this Court the power to adjudicate over petitioner's
application for conversion of its haciendas from agricultural to
non-agricultural. The agency charged with the mandate of
approving or disapproving applications for conversion is the DAR.
The doctrine of primary jurisdiction does not warrant a court to
arrogate unto itself authority to resolve a controversy the
jurisdiction over which is initially lodged with an administrative
body of special competence.
Doctrine:
For a valid implementation of the CAR program, 2 notices are
required: (1) the Notice of Coverage and letter of invitation to a
preliminary conference sent to the landowner, the representatives
of the BARC (Barangay Agrarian Reform Committee) , LBP
(Land Bank of PH), farmer beneficiaries and other interested
parties pursuant to DAR AO No. 12, Series of 1989; and (2) the
Notice of Acquisition sent to the landowner under Section 16 of
the CARL.
Hacienda Luisita Inc. v. PARC
W/N PARC has jurisdiction to recall/revoke HLI’s SDP and
W/N this recall/revocation is valid. (YES) The authority to
approve the plan for stock distribution of the corporate landowner
belongs to PARC. Although the laws do not explicitly vest the
PARC with the power to revoke/recall an approved SDP, such
power is deemed possessed by PARC under the principle of
necessary implication. The revocation is valid because the
mechanics and timelines of HLI’s stock distribution violate DAO
10 since the minimum individual allocation of each original farm
worker-beneficiaries (FWBs) of 18,804.32 shares was diluted as a
result of the use of “man days” and the hiring of additional
farmworkers and that the 30-year timeframe for HLI-to-FWBs
stock transfer is contrary to what Sec. 11 of DAO 10 which
provides for the implementation of the approved stock distribution
plan within three (3) months from receipt by the corporate
landowner of the approval of the plan by PARC.
W/N Sec. 31 of RA 6657 is constitutional. (YES) The Court
actually refused to pass upon the constitutional question because it
was not raised at the earliest opportunity and because the
resolution thereof is not the lis mota of the case. Moreover, the
issue has been rendered moot and academic since SDO is no
longer one of the modes of acquisition under RA 9700 (enacted in
2009).
W/N those parcels of land acquired by RCBC and LIPCO are
within the ambit of CARP. (NO) Both LIPCO and RCBC are
purchasers in good faith for value, so entitled to the benefits
arising from such status.
Doctrine:
EO 229, Sec10 - allows corporate landowners, as an alternative to
the actual land transfer scheme of CARP, to give qualified
beneficiaries the right to purchase shares of stocks of the
corporation under a stock ownership arrangement and/or land-to-
share ratio.
RA 6657, Sec31 - provides two (2) alternative modalities, i.e.,
land or stock transfer, pursuant to either of which the corporate
landowner can comply with CARP, but subject to well-defined
conditions and timeline requirements.
RA 9700, Sec. 5 - That after June 30, 2009, the modes of
acquisition shall be limited to voluntary offer to sell and
compulsory acquisition.
B. Definition of Agricultural Lands
Sec. 3(b.), R.A.6657
Agriculture, Agricultural Enterprise or Agricultural Activity
means the cultivation of the soil, planting of crops, growing of
fruit trees, raising of livestock, poultry or fish, including the
harvesting of such farm products, and other farm activities and
practices performed by a farmer in conjunction with such farming
operations done by persons whether natural or juridical.
Sec. 3(c.), R.A.6657
Agricultural Land refers to land devoted to agricultural activity as
defined in this Act and not classified as mineral, forest, residential,
commercial or industrial land.
Sec. 4, R.A 6657
The Comprehensive Agrarian Reform Law of 1988 shall cover,
regardless of tenurial arrangement and commodity produced, all
public and private agricultural lands, as provided in Proclamation
No. 131 and Executive Order No. 229, including other lands of the
public domain suitable for agriculture.
More specifically, the following lands are covered by the
Comprehensive Agrarian Reform Program:
(a) All alienable and disposable lands of the public domain
devoted to or suitable for agriculture. No reclassification of forest
or mineral lands to agricultural lands shall be undertaken after the
approval of this Act until Congress, taking into account ecological,
developmental and equity considerations, shall have determined
by law, the specific limits of the public domain.
(b) All lands of the public domain in excess of the specific limits
as determined by Congress in the preceding paragraph;
(c) All other lands owned by the Government devoted to or
suitable for agriculture; and
(d) All private lands devoted to or suitable for agriculture
regardless of the agricultural products raised or that can be raised
thereon.
C. Phasing
Sec. 7, R.A 6657
Priorities. – The Department of Agrarian Reform (DAR) in
coordination with the Presidential Agrarian Reform Council
(PARC) shall plan and program the acquisition and distribution of
all agricultural lands through a period of ten (10) years from the
effectivity of this Act. Lands shall be acquired and distributed as
follows:
Phase One: Rice and corn lands under Presidential Decree No. 27;
all idle or abandoned lands; all private lands voluntarily offered by
the owners for agrarian reform; all lands foreclosed by
government financial institutions; all lands acquired by the
Presidential Commission on Good Government (PCGG); and all
other lands owned by the government devoted to or suitable for
agriculture, which shall be acquired and distributed immediately
upon the effectivity of this Act, with the implementation to be
completed within a period of not more than four (4) years;
Phase Two: All alienable and disposable public agricultural lands;
all arable public agricultural lands under agro-forest, pasture and
agricultural leases already cultivated and planted to crops in
accordance with Section 6, Article XIII of the Constitution; all
public agricultural lands which are to be opened for new
development and resettlement; and all private agricultural lands in
excess of fifty (50) hectares, insofar as the excess hectarage is
concerned, to implement principally the rights of farmers and
regular farmworkers, who are the landless, to own directly or
collectively the lands they till, which shall be distributed
immediately upon the effectivity of this Act, with the
implementation to be completed within a period of not more than
four (4) years.
Phase Three: All other private agricultural lands commencing with
large landholdings and proceeding to medium and small
landholdings under the following schedule:
(a) Landholdings above twenty-four (24) hectares up to fifty (50)
hectares, to begin on the fourth (4th) year from the effectivity of
this Act and to be completed within three (3) years; and
(b) Landholdings from the retention limit up to twenty-four (24)
hectares, to begin on the sixth (6th) year from the effectivity of
this Act and to be completed within four (4) years; to implement
principally the right of farmers and regular farmworkers who are
landless, to own directly or collectively the lands they till.
The schedule of acquisition and redistribution of all agricultural
lands covered by this program shall be made in accordance with
the above order of priority, which shall be provided in the
implementing rules to be prepared by the Presidential Agrarian
Reform Council (PARC), taking into consideration the following:
the need to distribute land to the tillers at the earliest practicable
time; the need to enhance agricultural productivity; and the
availability of funds and resources to implement and support the
program.
In any case, the PARC, upon recommendation by the Provincial
Agrarian Reform Coordinating Committee (PARCCOM), may
declare certain provinces or regions as priority land reform areas,
in which case the acquisition and distribution of private
agricultural lands therein may be implemented ahead of the above
schedules.
In effecting the transfer within these guidelines, priority must be
given to lands that are tenanted.
The PARC shall establish guidelines to implement the above
priorities and distribution scheme, including the determination of
who are qualified beneficiaries: Provided, That an owner-tiller
may be a beneficiary of the land he does not own but is actually
cultivating to the extent of the difference between the area of the
land he owns and the award ceiling of three (3) hectares.
Sec. 5, DAR AO 7, s.2011. LAD Phasing.
The schedule of the acquisition and distribution of lands covered
by the CARP shall be, as follows:
Schedule   Phases
    Phase 1 
  a. All large single private
 agricultural lands the provisions of A.O. No. 8,
   
above fifty (50) hectares (with or Series of 
   
without     2003
    Notice of Coverage [NOC])
     
      Government Financial
  g.
All large aggregate private Institutions (GFI)-
  b.
agricultural foreclosed lands,
   
lands (PALs) of landowners with regardless of size
   
a total      
area greater than 50 hectares
    PCGG-acquired lands,
with (NOC)   h.
regardless of size
    as of December 10, 2008
     
      All other government-owned
  i.
P.D. 27 lands (rice and corn), alienable
  c.
regardless and disposable agricultural
   
    of size lands,
    regardless of size
     
All idle or abandoned      
  d.
agricultural lands,     Phase 2-A
    regardless of size
     
      All remaining large single
  a.
Starting 1 July 2009 up to All lands offered under agricultural
e.
30 June 2012 Voluntary Offer to lands with an area of 24 to 50
   
    Sell (VOS), regardless of size hectares
    (with or without NOC)
     
All PALs of landowners with an
Lands covered by Voluntary   b.
  f. aggregate
Land area of above 24 to 50 hectares
Transfer (VLT),    
    with NOC
regardless of size,
submitted as of June 30, 2009,     as of December 10, 2008
   
subject to   c. All agricultural lands provided in
 the 30 June 2014
preceding phase yet to be      
   
completed
All PALs with an aggregate area
        a.
from
    Phase 2-B (Notwithstanding the above 5 hectares up to 10
 
aforementioned hectares,
      schedule, in no case may
  with respect to the excess above 
All remaining Phase 3-B begin
  a. on a particular province
PALs of landowners with   5 hectares
an aggregate area in excess of 24 unless the LAD
    balance of the same
hectares    
province that are
    with or without NOC
covered by Phases 1, 2-A, All agricultural lands provided in
All agricultural lands provided in b.
  b. 2-B, and 3-A, the
the except lands under the preceding phases yet to be
preceding phases yet to be  
    jurisdiction of  completed
completed DENR, have been
   
      successfully
Starting 1 July 2012 up to completed.)    
  Phase 3-A
30 June 2013 The Presidential Agrarian Reform Council (PARC) or the
      PARC Executive Committee, upon the recommendation of the
All PALs with an aggregate PARCCOM, may authorize particular provinces to proceed
  a. with the acquisition and distribution of agricultural lands of a
area of above
10 hectares up to 24 hectares, particular Phase ahead of its schedule by declaring them as
    Priority Land Reform Areas, provided that that particular
with respect
province has completed the LAD of all the other Phases prior
    to the excess above 10 hectares to the one to proceed ahead of schedule.
     
All agricultural lands provided in
  b.
the
preceding phases yet to be C. Untitled Private Agricultural Lands
   
completed DAR AO 3, s.2014
     
D. Exclusions & Exemptions
Starting 1 July 2013 up to   Phase 3-B
 and quarantine centers and all lands with eighteen percent (18%)
Sec. 9, R.A. 6657. Ancestral Lands. slope and over, except those already developed shall be exempt
from the coverage of this Act.
For purposes of this Act, ancestral lands of each indigenous
cultural community shall include, but not be limited to, lands in
the actual, continuous and open possession and occupation of the
community and its members: Provided, That the Torrens System
shall be respected.

The right of these communities to their ancestral lands shall be

protected to ensure their economic, social and cultural well-being.
In line with the principles of self-determination and autonomy, the
Sec. 7, DAR AO 7, s.2011. Excluded from Coverage.
systems of land ownership, land use, and the modes of settling
land disputes of all these communities must be recognized and
respected. Excluded from coverage are:

Any provision of law to the contrary notwithstanding, the PARC a. All undeveloped lands with eighteen percent
may suspend the implementation of this Act with respect to (18%) slope and over;
ancestral lands for the purpose of identifying and delineating such b. All lands duly classified by the proper Local
lands: Provided, That in the autonomous regions, the respective Government Unit (LGU) as
legislatures may enact their own laws on ancestral domain subject commercial, industrial, or residential
to the provisions of the Constitution and the principles enunciated as of 15 June 1988;
in this Act and other national laws.
c. All ancestral lands/domains that may be
Sec. 10, R.A. 6657. Exemptions and Exclusions. identified in accordance with rules that
may be jointly issued by the DAR,
DENR, LRA, and the National
Lands actually, directly and exclusively used and found to be
Commission on Indigenous People;
necessary for parks, wildlife, forest reserves, reforestation, fish
sanctuaries and breeding grounds, watersheds, and mangroves, d. Retention areas granted to LOs who exercised
national defense, school sites and campuses including their retention rights; and
experimental farm stations operated by public or private schools
for educational purposes, seeds and seedlings research and pilot e. All agricultural landholdings of a LO with an
production centers, church sites and convents appurtenant thereto, aggregate size of five (5) hectares or
mosque sites and Islamic centers appurtenant thereto, communal less.
burial grounds and cemeteries, penal colonies and penal farms
actually worked by the inmates, government and private research
 Sec. 8, DAR AO 7, s.2011. Exempted from Coverage. p. Livestock, poultry, and swine raising since 15
June 1988.
Exempted from coverage are lands actually, directly, and
exclusively used, and found to be necessary for, the following
purposes: DOJ Opinion 44, s.1990

a. Parks; DOJ Opinion No. 181, s.1990

b. Wildlife; R.A. 7881 (1995)

c. Forest reserves;
SECTION 1. Section 3, Paragraph (b) of Republic Act No.
d. Reforestation; 6657 is hereby amended to read as follows:
e. Fish sanctuaries and breeding grounds; "Sec. 3. Definitions. — For the purpose
of this Act, unless the context indicates
f. Watersheds; otherwise:
g. Mangroves; "(b) Agriculture, Agricultural
h. National defense; Enterprise or Agricultural Activity means the
cultivation of the soil, planting of crops,
i. School sites and campuses, including growing of fruit trees, including the harvesting
experimental farm stations operated by public or of such farm products, and other farm activities
private schools for educational purposes; and practices performed by a farmer in
conjunction with such farming operations done
j. Seeds and seedlings research and pilot
by persons whether natural or juridical." cdt
production centers;
SECTION 2. Section 10 of Republic Act No. 6657 is hereby
k. Church sites and Islamic centers appurtenant
amended to read as follows:
thereto;
"Sec. 10. Exemptions and Exclusions.
l. Communal burial grounds and cemeteries; —
m. Penal colonies and penal farms actually "a) Lands actually, directly and
worked by the inmates; exclusively used for parks, wildlife,
n. Government and private research and forest reserves, reforestation, fish
quarantine centers; sanctuaries and breeding grounds,
watersheds and mangroves shall be
o. Fish ponds and prawn farms; and exempt from the coverage of this Act.
 "b) Private lands actually,
directly and exclusively used for prawn
farms and fishponds shall be exempt
from the coverage of
this Act: Provided, That said prawn
farms and fishponds have not been
distributed and Certificate of Land
Ownership Award (CLOA) issued to
agrarian reform beneficiaries under the
Comprehensive Agrarian Reform
Program.
"In cases where the fishponds
or prawn farms have been subjected to
the Comprehensive Agrarian Reform
Law, by voluntary offer to sell, or
commercial farms deferment or notices
of compulsory acquisition, a simple and
absolute majority of the actual regular
workers or tenants must consent to the
exemption within one (1) year from the
effectivity of this Act. When the
workers or tenants do not agree to this
exemption, the fishponds or prawn
farms shall be distributed collectively to
the worker-beneficiaries or tenants who
shall form a cooperative or association
to manage the same.
"In cases where the fishponds
or prawn farms have not been subjected
to the Comprehensive Agrarian Reform
Law, the consent of the farm workers
shall no longer be necessary, however,
the provision of Section 32-A hereof on
incentives shall apply." aisa dc
"c) Lands actually, directly and
exclusively used and found to be
necessary for national defense, school
sites and campuses, including
experimental farm stations operated by
public or private schools for educational
purposes, seeds and seedling research
and pilot production center, church sites
and convents appurtenant thereto,
mosque sites and Islamic centers
appurtenant thereto, communal burial
grounds and cemeteries, penal colonies
and penal farms actually worked by the
inmates, government and private
research and quarantine centers and all
lands with eighteen percent (18%) slope
and over, except those already
developed, shall be exempt from the
coverage of this Act."
SECTION 3. Section 11 Paragraph 1 is hereby amended to
read as follows:
"Sec. 11. Commercial Farming. —
Commercial farms, which are private
agricultural lands devoted to saltbeds, fruit
farms, orchards, vegetable and cut-flower farms,
and cacao, coffee and rubber plantations, shall
be subject to immediate compulsory acquisition
and distribution after ten (10) years from the
effectivity of this Act. In the case of new farms,
the ten-year period shall begin from the first
year of commercial production and operation, as
determined by the DAR. During the ten-year
period, the Government shall initiate steps
necessary to acquire these lands, upon payment
of just compensation for the land and the
improvements thereon, preferably in favor of
 organized cooperatives or associations which
shall thereafter manage the said lands for the
workers-beneficiaries."
SECTION 4. There shall be incorporated after Section 32
of Republic Act No. 6657 a new section to read as follows:
"Sec. 32-A. Incentives. — Individuals
or entities owning or operating fishponds and
prawn farms are hereby mandated to execute
within six (6) months from the effectivity of
this Act an incentive plan with their regular
fishpond or prawn farmworkers or fishpond or
prawn farm workers' organization, if any,
whereby seven point five percent (7.5%) of their
net profit before tax from the operation of the
fishpond or prawn farms are distributed within
sixty (60) days at the end of the fiscal year as
compensation to regular and other pond workers
in such ponds over and above the compensation
they currently receive.
"In order to safeguard the right of the
regular fishpond or prawn farm workers under
the incentive plan, the books of the fishpond or
prawn farm owners shall be subject to periodic
audit or inspection by certified public
accountants chosen by the workers.
"The foregoing provision shall not
apply to agricultural lands subsequently
converted to fishpond or prawn farms provided
the size of the land converted does not exceed
the retention limit of the landowner."
SECTION 5. There shall be incorporated after Section 65
of Republic Act No. 6657 new sections to read as
follows: cdasia
"Sec. 65-A. Conversion into Fishpond
and Prawn Farms. — No conversion of public
agricultural lands into fishponds and prawn
farms shall be made except in situations where
the provincial government with the concurrence
of the Bureau of Fisheries and Aquatic
Resources (BFAR) declares a coastal zone as
suitable for fishpond development. In such case,
the Department of Environment and Natural
Resources (DENR) shall allow the lease and
development of such areas: Provided, That the
declaration shall not apply to environmentally
critical projects and areas as contained in title
(A) sub-paragraph two, (B-5) and (C-1) and title
(B), number eleven (11) of Proclamation No.
2146, entitled "Proclaiming Certain Areas and
Types of Projects as Environmentally Critical
and Within the Scope of the Environmental
Impact Statement (EIS) System established
under Presidential Decree No. 1586," to ensure
the protection of river systems, aquifers and
mangrove vegetations from pollution and
environmental degradation: Provided,
further, That the approval shall be in
accordance with a set of guidelines to be drawn
up and promulgated by the DAR and the
BFAR: Provided, furthermore, That small-
farmer cooperatives and organizations shall be
given preference in the award of the Fishpond
Lease Agreement (FLAs).
"No conversion of more than five (5)
hectares of private lands to fishpond and prawn
farms shall be allowed after the passage of
this Act, except when the use of the land is
more economically feasible and sound for
fishpond and/or prawn farm, as certified by the
Bureau of Fisheries and Aquatic Resources
(BFAR), and a simple and absolute majority of
the regular farm workers or tenants agree to the
conversion, the Department of Agrarian
Reform, may approve applications for change in
the use of the land: Provided, finally, That no
piecemeal conversion to circumvent the
provisions of this Act shall be allowed. In these
cases where the change of use is approved, the
provisions of Section 32-A hereof on incentives
shall apply."
"Sec. 65-B. Inventory. — Within one
(1) year from the effectivity of this Act, the
BFAR shall undertake and finish an inventory
of all government and private fishponds and
prawn farms, and undertake a program to
promote the sustainable management and
utilization of prawn farms and fishponds. No
lease under Section 65-A hereof may be granted
until after the completion of the said inventory.
"The sustainable management and
utilization of prawn farms and fishponds shall
be in accordance with the effluent standards,
pollution charges and other pollution control
measures such as, but not limited to, the
quantity of fertilizers, pesticides and other
chemicals used, that may be established by the
Fertilizer and Pesticide Authority (FPA), the
Environmental Management Bureau (EMB),
and other appropriate government regulatory
bodies, and existing regulations governing water
utilization, primarily Presidential Decree No.
1067, entitled "A Decree Instituting A Water
Code, Thereby Revising and Consolidating the
Laws Governing the Ownership, Appropriation,
Utilization, Exploitation, Development,
Conservation and Protection of Water
Resources." cd i
"Sec. 65-C. Protection of Mangrove
Areas. — In existing Fishpond Lease
Agreements (FLAs) and those that will be
issued after the effectivity of this Act, a portion
of the fishpond area fronting the sea, sufficient
to protect the environment, shall be established
as a buffer zone and be planted to specified
mangrove species to be determined in
consultation with the regional office of the
DENR. The Secretary of Environment and
Natural Resources shall provide the penalties
for any violation of this undertaking as well as
the rules for its implementation."
"Sec. 65-D. Change of Crops. — The
change of crops to commercial crops or high
value crops shall not be considered as a
conversion in the use or nature of the land. The
change in crop should however, not prejudice
the rights of tenants or leaseholders should there
be any and the consent of a simple and absolute
majority of the affected farm workers, if any,
shall first be obtained."
SECTION 6. There shall be incorporated after Section 73
of Republic Act No. 6657 a new section to read as follows:
"Sec. 73-A. Exception. — The
provisions of Section 73, paragraph (E), to the
contrary notwithstanding, the sale and/or
transfer of agricultural land in cases where such
sale, transfer or conveyance is made necessary
as a result of a bank's foreclosure of the
mortgaged land is hereby permitted." acd
 SECTION 7. Separability Clause. — If for any reason, any
section or provision of this Act is declared null and void, no
other section provision or part thereof shall be affected and the
same shall remain in full force and effect.
SECTION 8. Effectivity Clause. — This Act shall take effect
fifteen (15) days after its publication in at least two (2)
newspapers of general circulation.
E. Coverage of previously exempted Agricultural lands
Sec. 9, DAR AO 7, s.2011
SECTION 9. Coverage of Previously Exempted Agricultural
Lands.
If any of the private agricultural lands stated in Section 8 hereof is
discovered not to be actually, directly, and exclusively used,
and/or not necessary, anymore for the purpose for which it is
exempted, the PARO shall immediately issue an NOC for the
subject landholding or the portions thereof.
Alita vs. CA
Lands obtained through homestead patents are not covered by the
Agrarian Reform under PD 27.
Natalia Realty v. DAR
Land previously converted to non-agricultural uses prior to the
effectivity of CARL is not covered by RA 6657, even if the
conversion was approved by a different government agency other
that DAR (because DAR was not yet given such function)
Luz Farms v. Sec. of Agrarian Reform
Raising of livestock, poultry, and swine are excluded from the
coverage of the CARL.
DAR v. Sutton
While Section 4 of R.A. No. 6657 provides that the CARL shall
cover all public and private agricultural lands, the term
"agricultural land" does not include lands classified as mineral,
forest, residential, commercial or industrial.
Central Mindanao University v. DARAB
For the inclusion in the CARP: Only those considered as tenants
and not violators of unlawful detainer or forcible entry can be
considered as beneficiaries of the CARP.
For exemption in the CARP: It is exempt from coverage under
Section 10 of R.A. 6657 because the lands are actually, directly
and exclusively used and found to be necessary for school site and
campus, including experimental farm stations for educational
purposes, and for establishing seed and seedling research and pilot
production centers.
On DARAB jurisdiction: Jurisdiction of the DARAB is limited
only to matters involving the implementation of the CARP. More
specifically, it is restricted to agrarian cases and controversies
involving lands falling within the coverage of the aforementioned
program.
DAR v. DECS
In order to be exempt from the coverage:
1. a)  the land must be actually, directly, and exclusively

used and found to be necessary; and
2. b)  the purpose is for school sites and campuses, including
experimental farm stations operated by public or private
schools for educational purposes.
Roxas & Company, Inc. v. DAMBA-NFSW
PP 1520 merely recognized the potential tourism value of certain
areas within the general area declared as tourism zones. It did not
reclassify the areas to non-agricultural use.
Aninao vs. Asturias Chemical Industries
F. Landowners’ Rights
Sec, 27, DAR AO 7 s.2011
SECTION 27. Period to Protest Coverage, Nominate
Preferred Beneficiary/ies, File a Manifestation for
Exemption/Exclusion, and File a Manifestation to Exercise
Retention Rights.  |||
Within a non-extendible period of thirty (30) days from
his/her/its/their receipt of the NOC, the LO may do the
following:
1. Protest against coverage, which must be filed
before the PARO and should contain
the substantial bases thereof;
2. Nominate child/ren who may qualify as
preferred beneficiary/ies;
3. File a Manifestation for Exemption or
Exclusion from CARP coverage before
the PARO; and
4. File a Manifestation to Exercise the
Right of Retention before the PARO.
The failure to do any of the foregoing within the
abovementioned reglementary periods shall be construed as a
waiver on the part of the LO of the right to protest coverage,
to nominate child/ren as preferred beneficiary/ies, to file a
petition for exemption or exclusion from CARP coverage,
and/or to exercise the right of retention, as the case may be.
All protests, nominations, and manifestations/petitions made
after this period shall no longer be accepted.
For landholdings under VOS, the LO shall exercise his
right of retention and the right to nominate child/ren as
preferred beneficiaries by submitting a notarized notice
thereof to the PARO who has jurisdiction over the landholding
offered at any time prior to the completion of service of the
Letter of Acceptance. The failure to exercise the said rights in
this case at the prescribed time shall be construed as a waiver
thereof.
G. Retention Rights
Sec. 6, R.A. 6657. Retention Limits.
SECTION 6. Retention Limits. — Except as otherwise
provided in this Act, no person may own or retain, directly or
indirectly, any public or private agricultural land, the size of
which shall vary according to factors governing a viable
family-size farm, such as commodity produced, terrain,
infrastructure, and soil fertility as determined by the
Presidential Agrarian Reform Council (PARC) created
hereunder, but in no case shall retention by the landowner
exceed five (5) hectares. Three (3) hectares may be awarded to
each child of the landowner, subject to the following
qualifications: (1) that he is at least fifteen (15) years of age;
and (2) that he is actually tilling the land or directly managing
the farm: Provided, That landowners whose lands have been
covered by Presidential Decree No. 27 shall be allowed to
keep the areas originally retained by them
thereunder: Provided, further, That original homestead
grantees or their direct compulsory heirs who still own the
original homestead at the time of the approval of this Act shall
retain the same areas as long as they continue to cultivate said
homestead.
The right to choose the area to be retained, which shall be
compact or contiguous, shall pertain to the
landowner: Provided, however, That in case the area selected
for retention by the landowner is tenanted, the tenant shall
have the option to choose whether to remain therein or be a
beneficiary in the same or another agricultural land with
similar or comparable features. In case the tenant chooses to
remain in the retained area, he shall be considered a
leaseholder and shall lose his right to be a beneficiary under
this Act. In case the tenant chooses to be a beneficiary in
another agricultural land, he loses his right as a leaseholder to
the land retained by the landowner. The tenant must exercise
this option within a period of one (1) year from the time the
landowner manifests his choice of the area for retention.
In all cases, the security of tenure of the farmers or
farmworkers on the land prior to the approval of this Act shall
be respected.
Upon the effectivity of this Act, any sale, disposition, lease,
management, contract or transfer of possession of private
lands executed by the original landowner in violation of
this Act shall be null and void: Provided, however, That those
executed prior to this Act shall be valid only when registered
with the Register of Deeds within a period of three (3) months
after the effectivity of this Act. Thereafter, all Registers of
Deeds shall inform the Department of Agrarian Reform
(DAR) within thirty (30) days of any transaction involving
agricultural lands in excess of five (5) hectares.
Sec. 30-39, DAR AO 7 s.2011
SECTION 30. Period to Exercise Right of Retention.
The LO may choose a retention area at the same time that
he/she/it manifested to exercise the right of retention. If this is
not done at the same time, the LO can choose the area within a
non-extendible period of fifteen (15) days after manifesting
his/her/its desire to exercise the said right.
In case the landholding is owned by co-owners, or by an
unsettled Estate of an LO who died prior to the issuance of the
NOC, such co-owners or heirs may only choose a retention
area through a joint application executed by all of them,
agreeing therein the retention area of each of the said co-
owners or heirs, provided that the right of retention of the
heirs, in case of an unsettled Estate, shall be subject to Section
37 of this A.O. In case one or more of the co-owners or heirs
refuses or fails to join with the others in the application, the
rest of the co-owners or heirs may not choose a retention area
unless they have partitioned their co-ownership or the Estate,
whichever is applicable. Some or all of the co-owners or heirs
may file, together with their manifestation to exercise their
right of retention, a manifestation to partition their co-
ownership or the Estate. If such manifestation to partition is
filed, the co-owners or heirs must partition the co-ownership
or Estate and choose a retention area within sixty (60) days
from receipt of the NOC. If such manifestation to partition is
not filed, the co-owners or heirs must accomplish such
partition and choose a retention area within the fifteen (15)
days allotted to a single LO.  No retention area may be chosen by the LO or the MARO
The failure to choose his/her/its/their desired area within the
fifteen (15)-day or sixty (60)-day period, whichever is
applicable, shall be deemed a waiver to do so, and shall
automatically authorize the MARO to choose the area to be
retained.
SECTION 31. Factors to Consider in Choosing Retained
Areas.
When the LO waives his/her/its right to choose the area to be
retained, the MARO shall choose, on or before the
conduct of the Survey, in the LO's behalf, taking into
consideration the following factors:
1. commodity produced;
2. terrain;
3. available infrastructure; and
4. soil fertility.
As soon as the MARO shall have identified the area,
the DAR shall notify the LO, by registered mail with return
card, the portion selected as his/her retention area. The same
notice shall indicate that the Retained Area chosen may not be
contested.
SECTION 32. Retained Area Must be Compact and
Contiguous.
unless such area is compact and contiguous.
In case of a co-ownership or an unsettled Estate mentioned in
Section 30 hereof, each co-owner or heir may choose an area
not contiguous with that chosen by his/her/its co-owner/co-
heir, provided, that if it is the MARO who shall choose the
retention area on their behalf, the retention area of all co-
owners/co-heirs must, as far as practicable, be compact and
contiguous with each other.
SECTION 33. Certificate  of  Retention.
The PARO shall issue Certifications of Retention to LOs who
had already availed of their Retention Rights. LOs who own
lands with an aggregate area of five (5) hectares or less may
be issued by the PARO a Certification of Retention upon
request.
In case the LO opts for the immediate issuance of a
title for his/her retention area after the
issuance of Certification of Retention by the PARO, prior to
the acquisition process in accordance with the schedule stated
in Section 5 of this A.O., he can request, in coordination with
the PARO, the Registry of Deeds (ROD) to issue a title in the
LO's name on the portion of his/her retained area based on the
Owner's Duplicate Copy of title from the LO, Approved
Segregation Plan, and technical description, and
Certificate of Retention. All fees for the said immediate
segregation survey of the LO's retention area and the
issuance of title on the same by the ROD shall be chargeable
to the account of the LO.
 SECTION 34. Retention for VOS Lands Prior to 1 July
2009.
For VOS lands submitted prior to 1 July 2009 where the
master list of ARBs has been finalized, the retention
areas of LOs covered under said VOS shall be processed
under the existing guidelines of R.A. No. 6657, as amended,
before July 1, 2009.
SECTION 35. Retention Under Commonwealth Act No.
141.
Landholdings covered by homestead grants and Free Patents
issued pursuant to Commonwealth Act (C.A.) No. 141 still
owned by the original grantees or their direct compulsory
heirs shall be retained by them as long as they were cultivating
the said landholdings and continue to cultivate the same.
SECTION 36. Retention under P.D. No. 27.
LOs or heirs of LOs not qualified to retain lands under P.D.
No. 27 cannot claim retention under R.A. No. 6657, as
amended, or even under R.A. No. 9700, over their
landholdings that were covered under P.D. No. 27. The same
LOs or heirs of LOs, however, may still exercise their
right of retention over other landholdings that hereafter shall
be covered by R.A. No. 6657, as amended.
SECTION 37. Retention  of  Landowner's Heirs.
Heirs of deceased LOs who died after 15 June 1988 are only
entitled to the five (5) hectare retention area of the deceased
LO.
SECTION 38. Retention  of  Spouses.
For marriages covered by the Conjugal Property of Gains
Regime, spouses whose agricultural lands are all conjugal in
nature may retain a total of not more than five (5)
hectares of such properties. However, if either or both of them
are LOs in their own respective rights (capital and/or
paraphernal), they may each retain not more than five (5)
hectares of their respective landholdings. In no case shall the
total retention area of such couple exceed ten (10) hectares.
For marriages covered by the Absolute
Community of Property Regime, the spouses, together, may
retain not more than five (5) hectares. All properties (capital,
paraphernal, and conjugal) shall be considered to be held in
absolute community, i.e., the ownership relationship is one,
and, therefore, only a total area of five (5) hectares may be
retained by the couple. 
For marriages covered by a Complete Separation of Property
Regime, each of them may retain not more than five (5)
hectares of their respective landholdings.
The property regime of a married couple whose marriage was
celebrated prior to 03 August 1988 shall be presumed to be the
Conjugal Property of Gains, unless otherwise stated in a valid
marriage settlement. The property regime of those whose
marriage was celebrated on or after 03 August 1988 shall be
presumed to be the Absolute Community of Property, unless Pursuant to existing rules and regulations, the child of an LO
otherwise stated in a valid marriage settlement.  shall be given preference in the distribution of his/her parent's
land provided he/she meets all of the following criteria:

i. Filipino citizen;
SECTION 39. Tenant Chooses to Remain in the Retention ii. At least fifteen (15) years of age as of the
Area. issuance of 15 June 1988; and
In case a tenant chooses to remain in the LO's retained area, iii. Actually tilling or directly managing the
the former shall be a leaseholder in the said land and shall not farm as of the time of the conduct of the field
qualify as a beneficiary under CARP. Conversely, if the tenant investigation of the landholding under CARP.
chooses to be a beneficiary in another agricultural land, he/she
In no case may the distribution of lands to preferred
cannot be a leaseholder in the land retained by the LO. The
beneficiaries deprive each of the agricultural lessees and
tenant must exercise this option within a period of one (1) year
tenants of being awarded the portion of the landholding they
from the time the LO manifests his/her choice of the area for
are actually tenanting/leasing, which in no case shall be more
retention.
than three (3) hectares.
Tenants/lessees in the retained areas who do not wish to
become leaseholders in the retained lands shall be given
preference in other landholdings whether or not these lands
belong to the same LO, without prejudice to the farmers who
are already in place in said other landholdings and subject to
the priorities under Section 22 of R.A. No. 6657, as amended.
|
In all cases, the security of tenure of the farmers or I.Support Services
farmworkers on the LO's retained land prior to the
Sec. 38, R.A. 6657, as amended by R.A 9700
approval of R.A. No. 6657, as amended, shall be respected.
Further, actual tenant-farmers in the landholdings shall not be SECTION 38, R.A. 6657. Support Services to Landowners.
ejected or removed therefrom.
The PARC with the assistance of such other government agencies
and instrumentalities as it may direct, shall provide landowners
H. Selection of Preferred Beneficiary/ies affected by the CARP and prior agrarian reform programs with the
Sec. 46, DAR AO 7 s.2011 following services:
SECTION 46. Farmer Children of Landowner as Preferred
Beneficiaries. (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.
A landowner who invests in rural-based industries shall be entitled
to the incentives granted to a registered enterprise engaged in a
pioneer or preferred area of investment as provided for in the
Omnibus Investment Code of 1987, or to such other incentives as
the PARC, the LBP, or other government financial institutions
may provide.
The LBP shall redeem a landowner’s LBP bonds at face value,
provided that the proceeds thereof shall be invested in a BOI-
registered company or in any agri-business or agro-industrial
enterprise in the region where the landowner has previously made
investments, to the extent of thirty percent (30%) of the face value
of said LBP bonds, subject to guidelines that shall be issued by the
LBP.
SECTION 38, R.A. 9700. Support Services to Landowners.
The PARC, with the assistance of such other government agencies
and instrumentalities as it may direct, shall provide landowners
affected by the CARP and prior agrarian reform programs with the
following services:
"(a) Investment information, financial and counseling assistance,
particularly investment information on government-owned and/or
-controlled corporations and disposable assets of the government
in pursuit of national industrialization and economic
independence:
"(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 BSP and
other government institutions and instrumentalities;
"(c) Marketing of agrarian reform bonds, as well as promoting the
marketability of said bonds in traditional and non-traditional
financial markets and stock exchanges: and/or
"(d) Other services designed to utilize productively the proceeds
of the sale of such lands for rural industrialization.
"A landowner who invests in rural-based industries shall be
entitled to the incentives granted to a registered enterprise engaged
in a pioneer or preferred area of investment as provided for in the
Omnibus Investment Code of 1987,or to such other incentives as
the PARC, the LBP, or other government financial institutions
shall provide.
"The LBP shall redeem a landowner's agrarian reform bonds at
face value as an incentive: Provided, That at least fifty percent
(50%) of the proceeds thereof shall be invested in a Board of
Investments (BOI)-registered company or in any agri-business or
agro-industrial enterprise in the region where the CARP-covered
landholding is located. An additional incentive of two percent
(2%) in cash shall be paid to a landowner who maintains his/her
enterprise as a going concern for five (5) years or keeps his/her
investments in a BOI- registered firm for the same period:
Provided, further, That the rights of the agrarian reform
beneficiaries are not, in any way, prejudiced or impaired thereby.
"The DAR, the LBP and the Department of Trade and Industry
shall jointly formulate the program to carry out these provisions
under the supervision of the PARC: Provided, That in no case
shall the landowners' sex, economic, religious, social, cultural and
political attributes exclude them from accessing these support
services."
J. LGU Retention Limit Exemption
Sec. 6-A, R.A. 6657 as amended by R.A 9700
SECTION 41, DAR AO 7 s.2011
SECTION 41. Conditions for LGU Retention Limit Exemption. —
CARP covered agricultural lands which are to be expropriated or
acquired LGUs for actual, direct, and exclusive public purposes,
such as roads and bridges, public markets, school sites,
resettlement sites, local government facilities, public parks, and
barangay plazas or squares, consistent with the approved local
government land use plan, shall not be subject to the five (5)-
hectare retention limit. However, prior to the
expropriation/acquisition by the LGU concerned, the subject land
shall first undergo the land acquisition and distribution
process of the CARP, and the ARBs therein shall be paid just
compensation without prejudice to their qualifying as ARBs in
other landholdings under the CARP.||| 
SECTION 42, DAR AO 7 s.2011.
SECTION 42. Agricultural Lands
Subject of Expropriation. — Pursuant to Section 6-A of R.A.
No. 6657, as amended, an LGU may, through its Chief
Executive and/or pursuant to an ordinance, exercise the
power of eminent domain on agricultural lands for public use,
purpose, or welfare of the poor and the landless, upon
payment of just compensation to the ARBs on these lands,
pursuant to the provisions of the Constitution and pertinent
laws. The power of eminent domain may not be exercised
unless a valid and definite offer has been previously made to
the ARBs, and such offer was not accepted. In cases where the
land sought to be acquired has been issued with an NOC or is
already subject to VOS (with a letter-offer submitted to DAR),
the concerned LGU shall suspend the exercise of its
power of eminent domain until after the LAD process has
been completed and the title to the property has been
transferred to the ARBs.
Where agricultural lands have been subjected to
expropriation, the ARBs therein shall be paid just
compensation.