Farming Conditions under Spanish Colonizers

Encomienda system
Share Cropping

Divide and conquer -the reduccion

The Spanish conquistadores declared the Islas Filipinas property of the King of Spain, Felipe. The government grouped native Filipinos into
pueblos and cabecillas, and had them live in what were equivalent to towns and provinces. Outside of these villages, the Crown declare itself
owner of all lands and seas.

Divide and conquer - servicio y polo. Vast lands were awarded by Spain to Spanish cabezas and gobernadorcillos and to Filipinos who
cooperated with colonization efforts, especially those who embraced the Catholic faith .

Divide and conquer - land grants . Vast lands were awarded by Spain to Spanish cabezas and gobernadorcillos and to Filipinos who cooperated
with colonization efforts, especially those who embraced the Catholic faith . Friars also acquired large grants - hence the so called friar lands , in
hundreds of hectares.

Divide and conquer - servicio y polo . The cabezas and gobernadorcillos made sure that Filipinos in the towns as well as all others paid taxes
and if they couldnt, they were conscripted to render services to government projects. The grantees of large estates needed workers to farm the
lands .

The encomienda was the means to concentrate the national wealth to the government and the few who acquired much, usually the religious.
They sustained the cities and kept farmworkers dirt poor , because the landowners would solely dictate what would go to farmer’s pocket as
their share.

Farmers were prohibited from pasturing their animals , gathering fruits , firewood , rattan and bamboo from the land the grantees grabbed, to
keep them poor. In 1745, creeping dissatisfaction among the natives took political color, essentially because of the oppressive government.

Peasant farmers of Batangas, Cavite and Laguna were the first to stage a revolt, against the vast lands grabbed from actual possessors .
Although the encomienda system was thrown like a dragnet all over the country, these farmers from Luzon raised a loud voice.

Peasant farmers of Batangas, Cavite and Laguna were the first to stage a revolt, against the vast lands grabbed from actual possessors .
Dispute with the Dominican priest owners in Hacienda Binan Carmona resulted in burning of bodegas and destruction of irrigation.

The Royal Audiencia sided with the Dominicans but to avert spread of the local rebellion, they declared amnesty for the rebels and allowed
farmers to pasture their cattle on hacienda land without rent. A similar incident involved the Jesuits in San Mateo where the Audiencia sided with
the Jesuits.

The Dagohoy rebellion and activism of Gabriella Silang in the North of Luzon were also significant efforts to protest the system of share
cropping which kept the natives enslaved to the land they tilled for the few who owned the entire encomienda area for more than two centuries.

The Dagohoy rebellion and activism of Gabriella Silang were in the North of Luzon were also significant efforts to protest the system of share
cropping which kept the natives enslaved to the land they tilled for the few who owned the entire encomienda area for more than two centuries.
American colonizers recognized the inequalities
MAIDEN EFFORTS TO IMPROVE SHARE TENANCY OR SHARE CROPPING AND LANDLORD-TENANT RELATIONS

Act 4054 The Rice Share Tenancy Act of 1933

Republic Act 34 Amending Rice Share Tenancy , 1946
R.A. 1199 Agricultural Tenancy Act 1954
R.A. 1400 Land Reform Act of 1955
R.A. 1267 Creating the CAR 1955 ( excess of 300 has /600 for corporations/

Continuation of legislation ...

R.A. 3844 Agricultural Land Reform Code Aug. 1963 abolished agricultural share tenancy system , replaced with agricultural leasehold
emphasizing annual lease rental as basis of land compensation, establishing contractual relations between landowner and tenant and providing
guidelines in determining share of farmers per crop produced.
R.A. 6389 Code of Agrarian Reforms (creating the DAR)
Proc. N0.2,PD 27 Tenants/Emancipation Decree -declared farmers free from the bondage of the soil , but covered farms planted to rice and
corn only.
RA 6657 Comprehensive Agrarian Reform Program Post CARL amendments :
R.A.8532 February 1988 amending CARL , providing funds and extending financing up to 2008
R.A. 9700 COMprehensive Agrarian Reform Program Extension with Reforms (CARPER) up to
June 30, 2014

1
RA 6657 Comprehensive Agrarian Reform Program

-covers all agricultural lands regardless of tenurial arrangement or commodity produced

-covers public and private agricultural land in excess of retention limits

Principles and Policies

Section 4, Article XIII - right of farmers to own directly or collectively the lands they till
TWIN PRINCIPLES
Land has a social function and land ownership has social responsibility
The State has duty to provide incentives and invest proceeds of land reform in industrialization employment and privatization of enterprises

Law 616 Wk4-Identification of Farmer Beneficiaries

WHO ARE LANDLESS BENEFICIARIES
Sec. 22 -22A
Order of priority
Landless Beneficiary is one who owns less than three hectares of agricultural land. See SEC. 25 If this situation holds - the order of priority is :
Agricultural lessees & share tenants
Regular farmworkers
Seasonal farmworkers
Other farmworkers
Actual tiller or occupants of public lands
Cooperatives of the above beneficiaries
Others directly working on the land
Who are regular farmworkers
These are farmers employed by a landowner , a commercial farm or plantation , paid wages and qualified , may be beneficiaries to enjoy the
priority .
Seasonal farmworkers are those whose work depends on the schedule of sowing and harvesting, and together with other farmworkers, are in
the lower order of preference than agricultural lessees and regular farmworkers.
Pending issuance of the CLOA but after these preferred beneficiaries have been identified by the DAR, they shall have usufructuary rights over
the awarded and as soona s the DAR takes possession of the land.
Who is an agricultural lessee ?
Share tenancy has been abolished under RA 3844.
An agricultural lessee is one who by himself and with aid available to him from his immediate farm household, cultivates land belonging to or
lawfully possessed by another, with the latter’s consent, for agricultural production, for a price certain in money or in produce or both.
General but indispensable qualifications, Filipino, at least 15years old, at time of identification, willing, able and equipped with aptitude to
cultivare and make land productive, a resident of the barangay or municipality and woning less than 3 hectares of agricultural
Collective ownership Section 25
Farmers may opt for collective ownership through cooperatives or some form of collective organization with the certificate of title awarded in the
name of the cooperative, but the total area that may be awarded shall not exceed the total number of co owners or member of the cooperative
multiplied by THREE HECTARES -
CONDITIONS -
Current farm management system not suited to individual farming in parcels
Farm labor is specialized ,
Potential beneficiaries are currently part of collective farm
Multiple crops are farmed in integrated manner or includes non farm inputs
Identification of Farmer beneficiaries
The BARC (Bgy Agrarian Reform Committee ) assists the MARO in identifying landholdings as well as farmers working on them . The powers
and functions of the BARC has been enlarged under EO 229 which added to Sec. 47 of RA 6657 the direct role of the BARC Chairman in the
settlement of disputes including matters related to tenurial and financial arrangements.
The lowest unit of implementation goes up from the MARO to the Provincial Agrarian Reform Coordinating Committee (PARCCOM) up to the
Presidential Agrarian Reform council , assisted by an Executive Committee.
PARC has rule making powers.
THE CLOA
The CLOA once issued attains indefeasibility one year after its registration with the Register of Deeds. Registration duty of the RD is ministerial .
Before its registration, any issue concerning its cancellation, nullification, revoking and invalidation, amendment or correction is within the
original jurisdiction of the DAR Secretary.
Grounds for cancellation :
1-within retention area
2-exempted
3 NOC s issued was defective and irregular /erroneous iD of landholding
4-land is under IPRA or under DENR administration

2
5-Erroneously issued CLOA
6-Nullification of DAR clearance
7-Misuse or diversion of financial support services extended to ARBs pursuant to Section 37
8-Misuse of the land.
9-material misrepresentaton of the ARB’s basic qualifications
10-premature conversion by the ARB

11- Sale transfer or lease or any other form of conveyance by a beneficiary, within the 10-year period, or any sale or conveyance to circumvent
Sec. 27 and Section 73.
12-Deliberate and absolute non payment of three consecutive amortizations in case of voluntary land transfer and direct payment scheme ,
provided that the ASB has been installed and in actual possession due to fault not attributable to hm.
13- Deliberate and absolute failure of the ARB to pay at least 3 annual amortizations fo LBP
14-Deliberate and willful negelect/abandonment of the land (Sec. 3 n)
15-Acts and circumstances analogous to the foregoing See DAR AO 06-11.
Duty of ARB to pay value of the Awarded land Sec. 26
Value is fixed on fixed percentage of ANNUAL GROSS PRODUCTION (AGP) If the cost of the land is lower than AGP, that will determine the
amount to be paid by ARB s .
How long - 30 annual amortizations to start 1 year after registration of CLOA
INterest computed at 6% per annum , with the first 3 years after ard reduced as established by the PARC, . Power to reduce further depends on
the AGP not due to beneficiary s fault. LBP has lien by way of mortgage , may be foreclosed if amortization is not paid for at least three years
Consequence - forfeiture in favor of other qualified beneficiaries (Sec. 11 as amended by RA 9700)
Law 616 Wk 6-7 Other Forms of Land Distribution
Obligations of the farmer beneficiary
Summary :
To take possession
To pay amortizations Sec 26
To keep land cultivated and productive exclusively for agriculture Sec.73(c)
To keep land in his ownership for a period not less than 10 years from date of registration of the EP CLOA Sec. 26 and 73 (f)
Other forms of awards aside from CLOA
Corporate Farms Sec. 29 is an exception to individual award to farmer beneficiaries where it is not economically feasible and sound to divide the
land owned by a corporation or a business corporation, it may may be awarded collectively to workers association or cooperative subject to
agreement with the corporation or business owner who, spending on the agreement, will still operate the collective farms for the cooperative,
should it be unable to manage or operate the entire business or farmwork .
Homelots and small farmlots shall be provided to individual members of the cooperative . Sec. 30 Homelots shall be taken from land owned by
the corporation or association and shall not exceed 3% of area of landholding but not to exceed 1,000 sq.,. At a convenient and suitable place
to be managed by farmer. All income from vegetables and poultry shall belong to farmer .

Corporate Landowners Sec. 31.

Situation : Corporations which own land in excess of limit
May voluntarily transfer ownership to the Sta e, or to the qualified beneficiaries under terms which DAR needs to approve
Stock transfer plan sme Section, corporate landowners may give beneficiaries the right to purchase such proportion of the capital stock which
land exclusively devoted to agriculture bears in relation to total assets, under terms as may be agreed upon by them.

Because farmers become stockholders, these conditions are imposed by Sec. 31-
a)book of the corporation shall be subject to periodic audit by CPAs
b) one seat at least in the board of directors or in the manegement or executive committee of the shall be for farmer beneficiaries
c) shares acquired by workers and beneficiaries shall have same rights and features as all others.
d) transfer of shares by original beneficiaries shall only be in favor of a qualified and registered beneficiary within the same corporation
Thirteen applications approved as of June 1993
Hacienda Luisita was the first to have been established under this stock distribution plan (SDP)
Brief history of HLI cases:
Cojuangcos bought land from Tabacalera with GSIS loans and foreign currency arrangement with Central Bank . Both govt entities imposed as
condition othe loan that the agricultural portions be subdivided and sold at cost to tenants. The Hacienda was managed by Tarlac Development
Corporation . It did not comply with the condition of re selling land to farmers. By 1985, before RA 6657, TDC was already subject to injunction
orders from the courts to convey land to the DAR. In 1986, When Cory Aquino became President, she declared that the Hacienda be covered
by agrarian reform. Area - 4,196 hectares

After coverage, the DAR through the new agrarian reform law (6657) included as mode of land distribution, a stock distribution plan, approved
by the PARC in 1989, with conditions-
A new corporation, Hacienda Luisita Inc (HLI) was created whereby TDC will transfer and convey not only land but also equipment and assets
related to agriculture IN EXCHANGE FOR SHARE OF STOCKS to HLI, which will operate the hacienda;
HLI will acquire stocks but will distribute then to worker beneficiaries according to the ration of agricultural land to total land assets as applied to
total stocks . At that time, there were 118,976 shares.

3
c) At end of each fiscal year for 30 years, HLI was given period to acquire stocks of TDC and distribute them to workers at no cost until the
entire block of shares shall have been distributed
d) Farmer beneficiaries shall include not only farmworker but also seasonal ones.
e) In the meantime TDC shall give out proxies which shall enable stock holder beneficiaries to vote at each annual meeting.
f) other conditions in MOA -
Guarantee of continuous employment

1.30th of total agreed stocks shall be distributed

3% of annual gross sales shall be distributed annually
FB s shall be entitled to dividends on shares transferred to them
Titled homelots not exceeding 240 sq m shall be given to FB s for free
FBs shall be entitled to free hospitalization, medical insurance plans, interest-free loans, bus fare subsidy, retirement gratuity which is fully
funded and non contributory.

Because the land assets of the HLI were grossly undervalued, that the shares of stocks ‘value as to farmers were reduced. Note: the shares of
stock wer to be valued proportionally to the value of land.
There were actually no representations from farmers allowed in stockholders meetings and decision making. There were factions among the
Farmers depending on who opposed management and those who did not.
Petitions for cancellation were filed ., resulting in DAR decision to approve the cancellation of the SDP agreement between TDC and HLI and
6, 296 Fbs .in 2005.

HLI appealed the DAR decision but in 2011, the Supreme Court upheld the DAR decision and nullified the SDP . DAR has issued Notice of
Compulsory Acquisition thereafter and presently land distribution is assumed to have been completed. HLI v. DAR G.R. 171101 July 5, 2011.
Continue other forms of distribution
Production Sharing.
Situation : Land is owned individually or by corporation and leases same or has same managed by another.
LO shall during the time the land is not yet transferred to the beneficiaries, execute a production - sharing plan with their workers , and which
earn over P5 M gross sales per annum. How much - 3% of Gross sales above 5 m
If there is a profit above gross sales, additional 10% of net profit after tax shall be distributed to regular farmworkers.

During transition , 1% of gross sales of the entity shall go to managerial technical and supervisory group as compensation , subject to
agreement and approval by DAR.
Covered by the production sharing scheme are
Any enterprise owning or operating land under lease
Multinational corporations engaged in agricultural activities
Commercial farms devoted to aquaculture , saltbeds, prawn ponds , fruit farms orchards, cut flower coffee, caco or rubber planting

After the production sharing period what happens to the landholding of entities or landowners?
Sec. 32 A- Fishponds and corporations owning fish and prawn farms - within months of effectivity of RA 6657 an incentive plan with regular
workers shall be implemented whereby 7.5% of net profit before tax shall be distributed annually over and above what workers receive as
compensation.
Sec. 11 . Commercial farms devoted to salt beds, fruit farms, cut flower farms, cacao and coffee and rubber shall be subject to acquisition 10
years after RA 6657 . Govt shall acquire and distribute to organized cooperatives /associations. .
AGRI BUSINESS VENTURES
Sec. 35 provides for Support Services that DAR will extend to farmers s well as landowners.
These compose of 1) irrigation facilities 2) infrastructure and public works projects 3)government subsidies for use of irrigation facilities 4) price
support and guarantee for produce 5) credit extensions 6) financial assistance to SME s in agrarian reform areas 7) assigning adequate
agricultural extension workers 8)R & D 9) training in cooperatie management 10) assistance in identifying ready markets fr produce 11) Info
dissemination about marketing 12) credit guarantee fund 13) modeling through pilot projects

Under (2) infrustructure, government is allowed to enter into joint venture agreements or build operate transfer schemes that will allow full
development for agrarian areas.
AVA -agribusiness venture agreements may be in the form of :
Joint venture agreements - where farmer and investor form joint venture corporation to manage farm operations . Beneficiaries contribute use of
the land held individually or in common including improvement. Other party infuses capital and technology

2.Lease Agreement - beneficiaries yield control over use and management of the land for a period and for a fee.
3. Contract Growing or Growership or Production Agreement - Farmers bind themselves to produce certain product only on arranged conditions
of volume, quality standard and selling price .
4. Management Contract - Farmers hire a contractor to assist in management and operation - usually for high value crops in exchange for fixed
wage and or commission .

5. Marketing Agreement = an investor finds markets or buyers for the produce and gets a commission from the farmers on agreed terms.
The DAR offers this service for the cooperatives and associations under the DAR marketing assistance program . Example: SMC for hybrid
or yellow corn

4
6. BOT Capitalist builds, or rehabilitates at his own cost, capital assets infrastructure and facilities and operates for an agreed period . At
expiration of term ownership of the entire venture is transferred to farmers .
Procedure : See DAR AO 9, s 1999 and DAR AO 2 s 1999..

7. Sugar Block Farming -consolidation f small farms into 30-5- hectares of sugar plantations for attainment of economies of scale. Usual target
are farmers with less than 2 hectares, with some only two kilometers apart . The Sugar Regulatory Board, DA and DAR pool initiatives to
increase productivity , enhance farming skills of farmers , reduce cost of production , and establish at least 1 agribusiness activity per block
farm.
Farmers do not lose ownership nor allow another to use the farms but they undergo training and coaching and must enrol as block farmers .
They can use common service facility and avail of funding and credit program. This is already in operation in Visayas and part of Luzon.
Are ancestral lands actually exempted from RA6657?
Sec. 9. Ancestral lands .
2nd paragraph -
The right of these communities to their ancestral lands shall be protected to ensure their economic, social and cultural well being . in line with
principles of self determination and autonomy, the systems of land ownership , land use, and modes of settling land disputes of all these
communities must be recognized and respected.

3rd paragraph.
Any provision of law to the contrary notwithstanding, the PARC may suspend the implementation of this Act with respect to anfor the purpose
of identifying and delineating such lands x x x
Week 7 The DAR Secretary and Adjudication functions
Sec. 50 pertains to administrative adjudicatory function vested by RA 6657 on the DAR .
First paragraph - primary jurisdiction to determine and adjudicate agrarian reform matters and shall have exclusive and original jurisdiction over
all matters involving the implementation of agrarian reform -
Second Paragraph - it shall not be bound by technical rules of procedure and evidence but shall proceed to hear and decide all cases, disputes
or controversies in a most expeditious manner, employing all reasonable means to ascertain the facts of every case in accordance with justice
and equity and the merits of each case… Toward this end, iy shall adopt a uniform rule of procedure to achieve a just expeditious and
inexpensive determination of every action or proceeding before it. . .

It shall have the power to summon witnesses administer oaths , take testimony, require submission of reports , compel production of books
and documents and answers to interrogatories and issue subpoena, and subpoena duces tesum and to enforce its writs through sheriffs or
other duly deputized officers,. It shall have the power to punish direct and indirect contempts in the same manner and subject to the same
penalties as provide din the Rules of Court .

Responsible farmer leaders shall be allowed to represent themselves their fellow farmers, or their organizations in any proceedings before the
DAR provided However That when there are two or more representatives for any individual or group, the representatives should choose only
one among themselves to represent such party or group before any DAR proceeding.
Notwithstanding an appeal to the Court of Appeals, the decision of the DAR shall be immediately executory except a decision or portion thereof
involving solely the issue of just compensation.

In cases referred by the MTC s and the prosecutor’s office, the appeal shall be with the proper regional trial court , and in cases referred by the
RTC s the appeal shall be toe the CA.
In cases where regular courts or quasi judicial bodies have competent jurisdiction, agrarian reform beneficiaries or identified beneficiaries or
their associations shall have legal standing and interest to intervene concerning their individual or collective rights and or interests under the
CARP.
Note : this provision adds that the fact of non registration ofthe association with the SEC shall not be used against them ,

Sec. 55 is also amended

:No restraining order or Preliminary Injunction - Except for the Supreme Court, no court in the Philippines shall have jurisdiction to issue any
restraining order or writ of preliminary injunction against the PARC, the DAR or any of its duly authorized or designated agencies in any case,
dispute or controversy arising from necessary to or in connection with the application, implementation, enforcement or interpretation of this Act
and other pertinent laws on agrarian reform.

RA 9700 added a sub section to Sec. 50 =

Sec.50 A Exclusive Jurisdiction on Agrarian Dispute. No court or prosecutor’s office shall take cognizance of cases pertaining to the
implementation of the CARP except those provided under Sec. 57 of RA 6657 as amended. IF THERE IS AN ALLEGATION FROM ANY OF
THE PARTIES THAT THE CASE IF AGRARIAN IN NATURE AND ONE OF THE PARTIES IS A FARMER, FARMWORKER OR TENANT,
THE CASE SHALL BE AUTOMATICALLY REFERRED BY THE JUDGE OR PROSECUTOR TO THE DAR WHICH SHALL DETERMINE AND
CEERTIFY within 15 days from referral whether an agrarian dispute exists .

First paragraph of Section 50 as amended speaks of an executive function while the second describes the DAR s quasi judicial function.
DAR performs these functions through two offices: The DAR Secretary and the DARAB as defined in Executive Order 129 A 89

5
1) DAR Secretary, and his representatives /Regional Directors , has exclusive and original jurisdiction over all agrarian law implementation
(ALI ) cases. For determination of what are ALI cases, study Adm Order No. 03-03, Jan. 16, 2003, Rules for Agrarian Law Implementation
Cases issued by the DAR Secretary

2) The DARAB has primary and exclusive jurisdiction both original and appellate to determine and adjudicate all agrarian disputes involving the
implementation of the CARP as amended. The appellate jurisdiction pertains to decisions of the PARD and the RARAD. For its purpose, the
DARAB through the Secretary promulgated its own rules, the 2009 Rules of Procedure of the DARAB, September 1, 2009 .
The Rules became necessary due to the lack of concrete distinction in the terms of Section 50 . All cases cognizable by the DARAB are
included in the Rules.

Composition of the DARAB

Secretary, DAR - Chairman
Two USEC s
DAR ASEC for Legal Affairs
Three others appointed by the President of the Philippines upon recommendation of the DAR Secretary .
Its decisions are appealable to the CA by certiorari under Rule 43

Under EO 129, matters involving strictly the administrative implementation of the CARL and other agrarian reform laws shall be the exclusive
prerogative of and recognizable by the DAR SECRETARY .
IN DAR v. Cuenca, even when constitutional issues are raised in a particular agrarian implementation cases, the issue should be resolved in
favor of jurisdiction of the DAR Secretary .
Land Conversions
References : Sec. 65 RA 6657, Sec.20 RA 7160

Sec. 65 allows conversion under the following conditions :

Lapse of 5 years from award of land
Land has ceased to be economically feasible and sound for agricultural purposes or the locality has become urbanized and the land will have
greater economic value for residential, commercial or industrial purposes
Who can apply - Beneficiary, must fully pay for price of the land upon conversion or land owner as to his retention area
With notice to affected parties - occupants, farmworkers , lien holders
What conversion is
It is the change in the current use of the land from agricultural to non agricultural. It refers to the process of changing the current physical use
of agricultural land into other uses, or into another agricultural use other than cultivation of the soil, planting crops, growing of trees and
harvesting produce , AS APPROVED BY THE DAR.
Sec. 5 (1) of Executive Order 129 A (July 1987) gives DAR Secretary exclusive authority to approve or disapprove conversion of agricultural
land as may be provided by law.
This authority covers those lands not yet converted as of June 15, 1988.

The Secretary may authorize the reclassification or conversion of agricultural land and its disposition.
The authority covers only those lands the use of which have not been changed prior to the effectivity of the CARP in 1988.
Sec. 65 excludes irrigated and irrigable lands from those that can be converted. The NIA is supposed to have inventoried and identified
these lands. There are other agricultural lands or lands subjected to CARL which cannot be converted even under conditions .
Lands which may not be converted(AO No.1- 2002)
Non negotiable for conversion are :
Lands within the protected areas under the National Integrated Protected Areas (NIPAS) in RA 7586 , mossy or virgin forests, riverbanks,
swamps forests or marshlands as determined by DENR ‘
All irrigated lands as determined by DA or NIA where water is available to support rice and other crop production, and where water is not
available for rice or crop production, but within areas programmed by government for irrigation facility rehabilitation
All agricultural lands with irrigation facilities
Areas highly restricted from conversion
Irrigable lands without irrigation project but with firm commitment of funding
Agri Industrial croplands that support economic viability of existing agricultural infrastructure and agro based enterprises
Highlands or areas located in elevations of 500 meter or above with potential for growing semi temperate or high value crops
Lands with notice of acquisition and land valuation or subject of a perfected agreement between LO and beneficiaries under VLT Or Direct
Payment Scheme
Lands within an Environmentally Critical Area (ECA) or involved in the establishment of a ECP, for which ECC must be obtained from DENR .
NIPAS Act
The law seeks to protect outstandingly remarkable areas and biologically important public lands that are habitats of rare and endangered
species of plants and animals ,biogeographic zones and related ecosystems . It has been amended in 2018 by Pres. Duterte n RA 11038, the
E-NIPAS Act ( added prohibition in the use and possession of destructive fishing gears within the protected seascape.
These areas can be strict nature reserve, natural park, natural monument, wildlife sanctuary, protected landscape or seascape, resource
reserve, natural biotic areas, other areas established by law, convention or international agreements, in which the Philippines is signatory,
Reclassification of agricultural lands by the LGU
See Sec. 20 of RA 7160 the Local Government Code .

6
20 a) It authorizes a city or municipality through an ordinance passed by the sanggunian, after conducting hearings for the purpose, to reclassify
agricultural land and provide for the manner of its utilization or disposition in the following manner - when the land ceases to to be economically
feasible and sound for agricultural purposes as determined by the DA, where the land shall have substantially greater economic value for
residential , commercial or industrial purpose as determined by the sanggunian concerned. The percentage of areas that may be converted
depends on the classification of the city or municipality.

Sec. 20 also provides that agricultural lands distributed to agrarian reform beneficiaries pursuant to RA 6657 ...shall not be affected and that
the said reclassification and the conversion of said lands into other purposes shall be governed by Sec. 65 of RA 6657.
The comprehensive land use plan shall be the primary and dominant bases for future use of land resources. Food production, human
settlements and industrial expansion shall be taken into consideration.
The percentage of areas that may be converted or reclassified may be changed by the President when public interest requires it .

Reclassification distinguished from conversion

Reclassification denotes allocation of lands into some specific uses and providing for the manner of their utilization and disposition, in the
process of town planning and zoning . Zoning ordinances do not immediately render the actual use of the reclassified land as of the time of
the enactment of the ordinance but most of the time reserves the same when the need to use it for the intended purpose arises. After June
15, 1988, when any agricultural land will fall under a zone included in the land use plan as residential, commercial or industrial, the
reclassification by the city or municipality shall be subject to the approval of the DAR Secretary .

A conversion by the DAR shall be necessary when the actual use from agricultural will change to non agricultural, despite the reclassification .
In the application of Sec. 20 RA 7160 and Sec. 65, RA 6657, the Supreme Court has upheld the above statement in several cases: Alarcon v.
CA, 8 July 2003, Ros v DAR , Aug. 31, 2005. CREBA v. Secretary June 18, 2010 (Certiorari Rule 65 )
In Ros v. DAR, what was the argument of petitioners Aboitiz in the CA?What was the ruling on the preliminary injunction issued by RTC
enjoining petitioner from continuing with the development of the land into industrial site ?

Reclassification v. conversion issues

The doctrines in Alarcon and in Ros v. Dar are reiterated in CREBA v. Secretary .
In 2002, DAR Secretary issued guidelines via Adm. Orders repealing previous ones on land conversions. AO 01-02 defined what are to be
subjected to DAR approval prior to conversion and penalizes premature conversions and devoting agricultural lands to non agricultural use.
Towards the end of 2002, the Secretary even suspended all conversions of riceland into non agricultural use no matter what the size. It
affected the real estate development industry as its source of convertible lands mostly come from agricultural and idle, uncultivated land.
Direct attack on AO 1, 2002
DAR AO 1-02 is a consolidation of all rules and regulations of the DAR on land conversions, issued by the Secretary. In CREBA v, Secretary ,
18 June 2010 , CREBA questioned its Section 3 - applicability of the guidelines to ALL APPLICATIONS FOR CONVERSION FROM AGRI TO
NON AGRI USES or to another agricultural use .
And , Sec. 3.4 Conversion of agricultural land or areas that have been reclassified by the LGU or by way of Presidential Proclamation, to
residential commercial industrial or other non agriculture use, on or after the effectivity of RA 6657 on 15 June, 1988. It also cited Memo 8 as
unconstitutional deprivation of due process and equal protection .
FOR CLASS DISCUSSION

What was the argument of CREBA in respect to the term, agricultural lands ?
What was the argument of CREBA as to how the Secretary abused his authority ?
What was the argument on the need for LGU to submit to conversion procedures?
What was the argument relating to deprivation of liberty and property without due process of law?
And, Memorandum 88 , April 15, 2008 freezing all conversions , is it valid exercise of police power?
Power to reclassify by LGU s not absolute

Sec. 20 (3) of RA 7160 states that “Nothing in this Section shall be construed as repealing or amending or modifying in any manner the
provisions of RA 6657.”
There is nothing unconstitutional in the issuance of accompanying memorandum, Memo No. 88 suspending the unabated conversion of prime
agricultural land for real estate development. At that time, there was a rice shortage , and agricultural land was needed for rice production.
There was enough basis - general welfare .
Sec. 65 A- Conversion into Fishpond/Prawn Farm
No conversion of public agricultural lands into fishpond/prawn farm - except when provincial government and BFAR declares a coastal zone as
suitable for fish development. In this case, lease shall be allowed subject to conditions
Not applicable to ECA to ensure protection of river systems , etc and
Approval shall be by guidelines to be set by DAR and BFAR
No conversion of private agricultural land of more than 5 hectares to fishpond after 1988.
Fishpond Lease Agreement
It is a privilege granted by the state to a person or entity to occupy and possess for a rental fee, ., any public land for the raising of fish and
other aquatic life . Sec. 65 C requires that a 50 meter area fronting the sea and 20 meter area on each side of river channels, be established
as buffer zones, to be planted with specific mangrove species, to protect the environment.
Sec.65 D allows change of commercial crops to high value crops provided that no prejudice to the rights of tenants or leaseholders shall occur.
A simple and absolute majority of the affected farmworkers shall consent to the change. It is not considered a conversion.

7
High value crops
Coffee and cacao
Citrus, cashew, guyabano, papaya, durian , guava, lanzones and watermelon mango, pineapple, strawberry, jackfruit, rambutan
Vegetable crops - asparagus, broccoli, cabbage, celery, carrots, cauliflower, radish tomato bell pepper and patola
Legumes - pole beans, snap beans and garden pea
Spices black pepper, garlic ginger onion Root crops , potato, ubi and cutflower
Immunity from injunction, restraining orders etc.
The DA , DENR and DAR in cases falling within their jurisdiction cannot be restrained , or prohibited by mandamus in the implementation of the
CARP.
WHY IS SALE OF AGRICULTURAL LAND with area below 5 hectares attended with the requirements of DAR clearance?
Sec. 70. The sale or disposition of agricultural lands retained by a landowner as a consequence of Section 6 hereof shall be valid as long as the
total landholding that shall be owned by the transferee.inclusive of the land to be acquired, shall not exceed the landholding ceilings.

DISPOSITION OF ALI and DARAB CASES

2003 Rules for Implementation of ALI cases
Primary jurisdiction on ALI cases
By Administrative Order 03-03, primary jurisdiction over all ALI cases belongs to the DAR Regional Director except when the DAR secretary
has promulgated special rules vesting jurisdiction in certain ALI issues to another office of the DAR.
Farmers leaders shall be allowed to represent themselves, their fellow farmers or their organizations
The proceedings before the Regional Director or the DAR Secretary shall not be bound by technical rules but in determining the rights and
obligations of the parties, speed, equity and justice, and economy shall be employed.

In DAR AO 03-03 Jan. 16, 2003, The 2003 Rules on ALI cases, there are 16 ALI situations over which the DAR Secretary through his
Undersecretaries or the Regional Directors, have primary jurisdiction . Resolution of ALI cases done by any undersecretary or regional director ,
or PARO can be elevated to the DAR Secretary .
Decisions of the DAR Secretary in implementation matters are first reviewed by the Office of the President following the doctrine of exhaustion
of administrative remedies
Decisions of the Regional director appealable to Sec
The resolutions or decisions of the Regional Directors are appealable to the DAR Secretary but the latter may delegate the resolution of the
appeals to any Undersecretary .
Grounds:
Serious errors in the findings of fact or conclusions of law causing irreparable injury to the appellant
Coercion, fraud, or clear graft and corruption in the issuance of the decision
In the disposition of these cases, the functions fulfilled are EXECUTIVE
Period of rendering decision
30 days after submission for decision
Order or resolution shall be final after the lapse of 15 days from receipt of copy by the parties , with only one MR to be allowed.
Frivolous or dilatory appeals may be fined or subjected to censure. (Section 52)
No restraining order or preliminary injunction shall issue against the PARC, the DAR or any of its duly authorized agencies in any case ,
dispute or controversy arising from , necessary to or in connection with the application, implementation enforcement, or interpretation of the
laws(Section 55).

DARAB CASES
Sec. 50 of RA 6657 as amended by RA 9700
Quasi Judicial Powers of the DAR
DISPOSITION OF DARAB CASES
DARAB exercises the quasi judicial functions of the DAR relating to agrarian disputes involving the implementation of the CARP and all other
laws and implementing rules and regulations . It has promulgated its own rules , 2009 DARAB Rules of Procedure , on September 1, 2009.
Composition (Sec. 17, EO 229, Sec. 13, EO 129 ) DAR SEC - Chairman, 2 Undersecretaries as may be designated by the DAR Sec., DAR Asst
Sec. for Legal Affairs, 3 others to be appointed by the President
DARAB delegates its quasi judicial functions to the REGIONAL ADJUDICATORS (RARAD) and PROVINCIAL ADJUDICATORS (PARAD).

By quasi judicial functions, power is given to public administrative officers, bodies or agencies to investigate facts or ascertain the existence of
facts, hold hearings and draw conclusions from them as basis for their official action and to exercise discretion as if they were a court or judicial
body.

DARAB has both appellate and original jurisdiction in adjudicating cases, in that all decisions of the PARAD and RARAD may be appealed to it .
DARAB can review, modify alter, or affirm resolutions, orders, and decisions of the Adjudicators.
The DARAB has power to use compulsive processes, and enforce its writs and orders through sheriffs or other deputized officers.
It also has contempt powers in the same manner that courts have, and in citing person in contempt, it is bound by the Rules of Court.
Representation of parties by lawyers or farmer leaders is allowed.

DARAB conducts hearings in the same manner that the courts do. It can summon witnesses, administer oaths, take testimony, require
submission of reports or position papers , compel production of books and documents and answers to interrogatories.

8
However, no interlocutory orders of the adjudicators on any issue question, matter or incident may be elevated to the DARAB until the hearing
shall have been terminated and the case decided on the merits.

The 2009 Rules of Procedure of the DARAB enumerate 11 such cases

Rights and obligations of persons engaged in the management, cultivation and use of all agricultural land covered by CARL as amended and
toerh agrarian laws.
Preliminary administrative determination of reasonable and just compensation for lands acquired under RA 6657
Those involving annulment, or rescission of lease contracts or deedsof sale or their amendments involving lands under disposition of the DAR or
LBP amendment of titles of agricultural lands under the same, including RPs, and Patents

d)cases on ejectment and dispossession of tenants and or leaseholders

e) sale alienation, pre emption, redemption of agricultural lands under coverage of CARL e involving the correction, partition, secondary and
subsequent issuances of lost or destroyed owner’s copy and reconstitution of CLOAS which are registered with the LRA
g) review of leasehold rentals and fixing of disturbance compensatio
h) collection of amortization payments , foreclosures etc

I)boundary disputes
J ) those cases previously falling under the jurisdiction of the defunct Court of Agrarian relations except those falling under the proper courts or
other quasi judicial bodies
k) such other matters referred to it by the Secretary of the DAR.
Tenancy relationship condition sine qua non
Complaints filed with the DARAB must first satisfy the requirement of proof of tenancy relationship between the parties involved in an agrarian
dispute.
Review elements of tenancy relationship in the cases assigned.
If these elements appear indubitable in the facts of the case, no prosecutor, or court can take cognizance of a case pertaining to the
implementation of the CARP and they are duty bound to refer the case to the DAR, which shall within 15 days from referral determine whether
or not an agrarian dispute exists. Sec. 50A , RA 6657

The determination by the DAR that there is agrarian dispute and that the DAR has jurisdiction may be subject of an action in court, If the case
was originally in the MTC or the prosecutor’s office, the appeal shall be to the RTC, and if the case was referred to the DAR by the RTC, the
appeal shall be to the CA.
In the regular courts or quasi judicial bodies agrarian reform beneficiaries and or their organizations shall have legal standing and interest to
INTERVENE concerning their individual or collective rights and interests under the CARP (same Sec. 50A) RA 9700 introduced a new
provision, that these organization need not be registered with SEC or CDA before they can be allowed to intervene.

It is the PARO who issues certification , within 48 hours from receipt of the report of the Chief of the Legal Division, or of DAR lawyer if there is
one assigned, and such certification shall state :
This office certifies that the case is not agrarian in nature . It is therefore recommended that the referring court /prosecutor conduct further
proceedings.
It is aso the PARO which transmits the Certification, attaching pertinent documents .
BARC CERTIFICATION
Before the DAR and the DARAB can assume jurisdiction over agrarian disputes,a certification from the BARC that the dispute has been
submitted to it by the parties for mediation and conciliation without any success shall be required.
Except - That if no certification is issued by the BARC within 30 days after a matter or issue is submitted to it ...the case can be brought before
the PARC. Sec. 53
RA9700 extended the prohibition against issuance of restraining orders to orders interlocutory , by the DARAB by the regular courts. The
Supreme Court is not included in the proscription .

Prima facie presumption that there is agrarian dispute and the prosecutor and court has no jurisdiction are :
Previous determination by DAR that case is agrarian dispute, or that there is a pending dispute with the DAR involving the landholding.
Previous determination by the NLRC or its LA that the farmworker was an employee of the complainant
NOC was issued to landholding
Other analogous circumstances
JUDICIAL REVIEW
Section 54. Certioriari. Any decision order award or ruling on any agrarian dispute or on any matter pertaining to the application, implementation
, enforcement, or interpretation of this ACT and other pertinent laws on agrarian reform may be brought to the CA by certioriari except as
otherwise provided in this ACT within 15 days from receipt of a copy thereof.
Rule 43 of the Rules provides for this remedy. Section 1 specifies that the remedy is for any award… authorized by …quasi judicial agency in
the exercise of its quasi judicial functions … one of which is the Department of Agrarian Reform
Features of an appeal by certiorari
Period 15 days from notice of award
Appeal is taken by filing a petition for review on certiorari with the CA with proof of service of the copy thereof to the adverse party . Fees are
paid to the CA, not in the DAR or DARAB.

9
Among other requirements , the petition shall be accompanied by clearly legible duplicate original or certified copy of the award or order or
resolution appealed from. Non compliance with any requirement will warrant a dismissal
CA orders filing of Comments from respondents within 10 days .

After comments have been submitted and If CA determines that an error of fact and law may have been committed, it will give due course to the
petition, otherwise it will dismiss.
If CA gives due course, it will require the elevation of the original records or an abridgment thereof upon agreement of the parties, from the
agency concerned . Oral argument may be ordered or parties may just be required to submit memoranda within a period of fifteen days from
notice
Case is submitted for decision upon the filing of last pleading or memorandum
Land valuation determined by the DARAB
As mentioned before, the DAR through the LB has preliminary and administrative determination of the land valuation of lands taken from the
landowners . Upon disagreement from such determination by the DAR through the LB, the latter shall refer the rejection of the valuation to the
DARAB through the PARAD, and RARAD
Note Section 57 saying that the SAC has original and exclusive jurisdiction over all petitions for determination of just compensation to
landowners….
This means that any party may contest the valuation and file an original action with SAC. SAC does not exercise appellate jurisdiction on the
matter .
Notice of Filing of Action with the SAC
The party filing the action for determination of land valuation must file with the DARAB or the Adjudicator a Notice of Filing of Original Action-
otherwise, the decision of the DARAB or Adjudicator shall be final and executory.
The action to be filed with the SAC must be accompanied by copy of the petition otherwise the same shall be dismissed.

Preferential attention in courts

All courts in the Philippines both trial and appellate, shall give preferential attention to all cases arising from or in connection with the
implementation of the provisions of this Act. This is the first paragraph of Section 62.
From the CA, any party desiring to appeal to the Supreme Court on pure questions of law shall be guided by Rule 45 Appeal by certiorari
The Special Agrarian Courts
Creation and Jurisdiction
Jurisdiction
Original and exclusive over all petitions for
DETERMINATION OF LAND COMPENSATION to landowners
PROSECUTION OF ALL OFFENSES UNDER RA 6657
These SACS shall have powers and prerogatives inherent in or belonging to Regional Trial Courts .
Supervision of the SAC courts
Because it is, under Sec. 56 of RA 6657 the Supreme Court which designates at least 1 branch of the RTC s within each province to act as
Special Agrarian Court, supervision over the SAC judges belongs to the Supreme Court. The jurisdiction is special in that the RTC s exercise
the same over and above their regular jurisdiction under BP 129.
In conducting trial, the SACs shall be guided by the Rules of Court unless special rules shall have been enacted .
Judges have 30 days within which to decide all appropriate cases under their special jurisdiction, counted from the day the case is submitted for
decision.
Land compensation
Jurisdiction is original,not appellate .
Review : That pursuant to Ex. Order No. 405 June 14, 1990, LBP is primarily responsible for determining land valuation to be used by the DAR
in computing the amount to be paid by farmer beneficiaries , as well as land compensation for the landowners.
That since Sec. 56 vests SAC with original and exclusive jurisdiction, in case of disagreement with the land compensation fixed by the DAR ,
the landowner can immediately bring the issue of land valuation to the SAC without waiting for any new offer of valuation from the DAR

During hearing of contested land valuations, the SAC can secure the assistance of commissioners at its own instance or upon request of any
or both parties .
Before filing the original action in the SAC, the landowner shall file with the DAR or DARAB a Notice of Filing Original Action , otherwise the
decision shall be final and executory.
The written report of the facts examined , investigated and determined, if relevant to the issues, may be used by the presiding judge in
resolving the dispute over compensation.
Prohibited acts and omissions
Sec. - 73. (a) through (j)
Penalties : for acts under paragraphs a b f g and h , imprisonment of 3 years and one day to 6 yrs or a fine of not less than P50,000.00, or
both,
For acts under paragraphs c, d e and i 6 years and one day to 12 years or a fine of not less than P200,000 and not more than P1,000,000.00 or
both,
For knowingly and willfully violating any of the provisions of RA 6657, lighter penalty is imposed, imprisonment of not less than 1 month nor
more than 3 years or fine of P1,000 not more than P15,000 or both.
Persons liable
Natural persons - landowner, farmer beneficiary , tresspassers,
Juridical persons , provided that the penalty of imprisonment shall be served by the person directly liable for the punishable act

10
Public officers and employees
Of the DAR
Of any government agency

Public officers or responsible officer of government who

Unjustly denies notice and or reply to landowners,
Deprives landowners of retention rights
Incurs in delay in preparation of claim folders
Unjust refusal or delay in payment of land compensation
Special attention to: DAR officer, LBP officer /employee . other government officials failing to submit any report needed in implementation of
provisions of RA 6657 as required by government or Congress … AND TO falsification of attestations in Sec. 7 RA 6657

Liability for other offenses punishable by other laws

Government officials and employees convicted under this Act can be found liable in another civil case or administrative proceedings under civil
service law and rules .
The sale or transfer of any agricultural land as a result of bank foreclosure of the mortgaged land is permitted . See Section 73-A.
Question, If the agricultural land is mortgaged to a private person, will this likewise be permitted?
Appeal from decisions of the SAC
No appeal from any issue, question or matter or incidents raised before the SAC may be elevated to an appellate court until the entire case is
heard on the merits.
Sec. 60 provides for appeal from decisions of the SAC -
By Petition for review with CA
Within 15 days from receipt of notice of decision.
Sec. 60 also speaks of appeal to the SC by petition for review , of decisions or rulings or order of the DAR . When appeal is direct to SC, the
issue is always about question of law.
The Rules of Court details the mode of appeal
But which Rule should govern?
Rule 41 Appeal from the Regional Trial Court
Or Rule 42 Petition for Review from the Regional Trial Courts to the Court of Appeals
Sec. 61 says that review by the Court of Appeals or the Supreme Court shall be governed by the Rules of Court .
This is a general reference.

11