Section 7.

 Section 36 (1) of the same Code is hereby amended to read as follows:

"(1) The landholding is declared by the department head upon recommendation of the National Planning
Commission to be suited for residential, commercial, industrial or some other urban purposes: Provided,
That the agricultural lessee shall be entitled to disturbance compensation equivalent to 5 times the
average of the gross harvests on his landholding during the last 5 preceding calendar years;"

REPUBLIC ACT No. 6389 (September 10, 1971)

Section 7. Section 36(1) of the same Code is hereby amended to read as follows:
"(1) The landholding is declared by the department head upon recommendation of the National Planning
Commission to be suited for residential, commercial, industrial or some other urban purposes: Provided,
That the agricultural lessee shall be entitled to disturbance compensation equivalent to 5 times the
average of the gross harvests on his landholding during the last 5 preceding calendar years;"

Section 22. Section 65 of Republic Act No. 6657, as amended, is hereby further amended to read as
follows:
"SEC. 65. Conversion of Lands. - After the lapse of 5 years from its award, when the land ceases to be
economically feasible and sound for agricultural purposes, or the locality has become urbanized and the
land will have a greater economic value for residential, commercial or industrial purposes, the DAR, upon
application of the beneficiary or the landowner with respect only to his/her retained area which is tenanted,
with due notice to the affected parties, and subject to existing laws, may authorize the reclassification or
conversion of the land and its disposition: Provided, That if the applicant is a beneficiary under agrarian
laws and the land sought to be converted is the land awarded to him/her or any portion thereof, the
applicant, after the conversion is granted, shall invest at least 10% of the proceeds coming from the
conversion in government securities: Provided, further, That the applicant upon conversion shall fully pay
the price of the land: Provided, furthermore, That irrigated and irrigable lands, shall not be subject to
conversion: Provided, finally, That the National Irrigation Administration shall submit a consolidated data
on the location nationwide of all irrigable lands within 1 year from the effectivity of this Act.
"Failure to implement the conversion plan within 5 years from the approval of such conversion
plan or any violation of the conditions of the conversion order due to the fault of the applicant shall cause
the land to automatically be covered by CARP."

Section 24. Section 73 of Republic Act No. 6657, as amended, is hereby further amended to read as
follows:
"SEC. 73. Prohibited Acts and Omissions. - The following are prohibited: "xxx:
"(c) Any conversion by, any landowner of his/her agricultural land into any non-agricultural use with intent
to avoid the application of this Act to his/her landholdings and to dispossess his/her bona fide tenant
farmers: xxx."

Expropriation of Private Agricultural Lands (Compulsory Acquisition)

REPUBLIC ACT No. 3844 (August 8, 1963)

Section 54. Possession of the Land; Procedure - The Authority, after commencing the expropriation suit,
may take immediate possession of the land upon deposit with the Court that has acquired jurisdiction over
the expropriation proceedings in accordance with the Rules of Court, of money, and bonds of the Land
Bank, in accordance with the proportions provided for under Section 80 of this Code, equal to the value as
determined by the Court in accordance with the provisions of Section 56 hereof.

Section 57. Duty of Court in Expropriation Proceedings - In expropriation proceedings, it shall be the

duty of the Court to include in its resolution or order of expropriation a provision that the Land Authority
shall, after taking possession of the land and after the subdivision thereof, allow the Land Bank to have the
title thereto for the purpose of paying the owner the just compensation therefor.
 Section 58. Issuance of Certificates of Title for Parcel or Lot - After the payment of just compensation on
the land expropriated the Land Bank shall cause the issuance of separate certificates of titles for each parcel
or lot in accordance with the subdivision survey made under Section 55.

Section 60. Disposition of Expropriated Land - After separate certificates of titles have been issued in
accordance with Section 58, the Land Authority, on behalf of the Republic of the Philippines and in
representation of the Land Bank as the financing agency, shall allot and sell each parcel or lot to a qualified
beneficiary selected under Section 55 of this Code, subject to uniform terms and conditions imposed by the
Land Bank: Provided, That the resale shall be at cost which shall mean the purchase price not more than
6% per annum, which shall cover administrative expenses, and actual expenses for subdivision, surveying,
and registration: Provided, further, That such cost shall be paid on the basis of an amortization plan not
exceeding 25 years at the option of the beneficiary.

Under Section 65 of Republic Act (R.A) No.6657, as amended, Executive Order No. 129-A, and Section 3,
Title XI of the Revised Administrative Code of 1987 (E.O No. 292) the DAR is mandated to approve or
disapprove applications for land conversion of agricultural lands to non-agricultural uses.

Conversion-is the act of changing the actual use of agricultural land into other uses as approved by the
DAR in accordance with law.