CODE OF AGRARIAN

REFORMS
JUMALON || RASCO || TIO || TUBLE || VILLAFLOR
 HISTORY

Agricultural Land Reform Code RA No. 6389 renamed it as CODE OF AGRARIAN REFORM
Administrative bill
Signed into law on August 8th, 1963 by President Diosdado Macapagal-Arroyo
OBJECTIVE

Create a system of owners-cultivatorship

Economic family-size farm
CODE OF AGRARIAN REFORMS VIS--
VIS CODE OF AGRARIAN REFORM LAW
DID NOT REPEAL
ONLY SUPPLEMENTS (SEC. 75, RA NO. 6657)
SALIENT FEATURES

Abolished share tenancy system replaced with agricultural leasehold;

Bill of rights for agricultural workers
Department of Agrarian Reform
Land Bank as financial arm
SHARE TENANCY VS. LEASEHOLD
Two persons agree on a joint undertaking Compulsorily acquired lands for distribution
for agricultural production to farmer-beneficiaries
LAND + LABOR Leasehold relationship can exist in the
Tenant = cultivating the land following:

Produce = divided between tenant and a) area is retained;

landholder b) farmer-beneficiary leases the land
Abolished by SEC. 4, RA No. 6657 awarded to him to another person;
c) farmer-beneficiary leases the land to the
former owner of the land;
d) leased to agricultural corporations.
FORM OF LEASE CONTRACT
GENERAL RULE no particular form is required to establish the leasehold relation
Oral or written
Lessor need not be the owner of the land
Should parties decide to reduce their leasehold contract into writing:
A. drawn in quadruplicate in a language known;
B. signed or thumb-marked parties and witnesses
C. acknowledged by municipal court where land is situated
D. registered with Municipal Treasurer

Role of the Municipal Treasurer custodian of agricultural lease contracts

Registry of Agricultural Leasehold Contracts (SEC. 18)
TERMS AND CONDITIONS OF THE
LEASEHOLD CONTRACT
MODE OF PAYMENT OF RENTAL
TERM OF THE LEASE
TRANSFER OF OWNERSHIP
EFFECT OF DEATH/PHYSICAL
INCAPACITY OF THE LESSEE
WHEN LEASEHOLD IS EXTINGUISHED
ABANDONMENT OF LANDHOLDING
VOLUNTARY SURRENDER OF THE
LANDHOLDING
TERMINATION BY LESSEE
DISPOSSESSION
OBLIGATIONS OF THE AGRICULTURAL
LESSOR
Peaceful possession and cultivation
Keep intact useful improvements to destroy/remove substantial violation of the leasehold
contract
Objective: intended to protect the interest of the lessee against harassment by the lessor
OBLIGATIONS OF THE AGRICULTURAL
LESSEE
Cultivate, take care, grow crops
Good father of a family
Inform the lessor within a reasonable time of any trespass by third persons without prejudice
to his direct action against the trespasser
Reasonable care of work animals and farm implements
Continuous growing of crops
Effect of abandonment/neglect = by order of the Court, it may be forfeited in favor of the
lessor to the extent of the damage caused
Notify lessor 3 days prior of harvesting
Pay the lease rental
RIGHTS OF THE LESSOR

Inspect and observe the extent of compliance

Propose
Require
Mortgage

Lessor may exercise his rights as long as NO INTERFERENCE of the lessees peaceful
possession
RIGHTS OF THE LESSEE
Possession
Peaceful enjoyment
Manage and work
Mechanize
Deal with millers and processors
Attend to the issuance of quedans and warehouse receipts for the produce due him
Homelot
RIGHT OF LESSEE TO BE INDEMNIFIED
FOR HIS LABOR
If the lessee surrenders, abandons or is validly ejected from landholding, he may be indemnified.
Cost and expenses incurred for cultivation
Other expenses incidental from improvement
One-half od the necessary and useful improvements made by him - TANGIBLE and HAVE
NOT LOST ITS UTILITY at the time of surrender/abandonment/ejectment
RIGHT OF PRE-EMPTION

Lessee has the preferential right to buy the land actually cultivated by him
RIGHT OF REDEMPTION
RIGHTS OF AGRICULTURAL WORKERS
ACTS THAT ARE FORBIDDEN TO THE
LESSOR
ACTS THAT ARE FORBIDDEN TO THE
LESSEE
ENFORCEABILITY OF THE LOANS
PROPERTIES OF THE LESSEE THAT ARE
EXEMPT FROM LIENS/EXECUTION
PRESCRIPTION OF ACTION
DEPARTMENT OF AGRARIAN REFORM

The Code of Agrarian Reforms re-named the Land Authority as the DEPARTMENT OF
AGRIARIAN REFORM
FUNCTIONS

1. For the betterment of the farmers, landowners, and beneficiaries:

a. Resettle landless farmers and farm workers in government-owned agricultural estates,
b. Incentives
c. Free legal assistance
d. Provide creative, responsive and effective information, education and communication
programs and projects
e. Strengthen agrarian reform beneficiaries organization
f. Promote the organization and development
g. Compensate the landowners covered by agrarian reform
FUNCTIONS
2. The sole responsibility of DAR to further enhance and to implement the program:
a. Implementation of laws, programs, and policies
b. Acquire, determine the value, subdivide into family-size farms, develop and distribute
c. Administer and dispose
d. Implement all agrarian reform laws
e. Undertake land surveys on lands covered by agrarian reform
f. Develop, implement, and undertake alternative and innovative land development schemes
and land tenure systems
g. Approve or disapprove conversion of agricultural lands to non-agricultural uses
h. Undertake land use management studies
i. Integrate and synchronize program implementation of: Land Bank, military government,
private entities
LAND BANK
a. To prescribe, repeal and alter its own by-laws;
b. To adopt, alter and use a corporate seal;
c. To hold, purchase, acquire, and own real and personal property;
d. To sue and be sued;
e. To grant short, medium, and long term loans;
f. To grant loans to farmers;
g. To finance and/or guarantee the acquisition;
h. To underwrite, hold, own, purchase, acquire, sell, mortgage, dispose or otherwise invest
or reinvest in stocks, bonds, debentures, securities, and others;
i. Guarantee acceptance(s), credits, loans, transactions, or obligations of any person, co-
partnership, association or corporation in favor of any financing or banking institution;
j. To borrow from, or rediscount notes, bills of exchange and other commercial papers;
k. To act as trustee or administer;
l. To act as an official government depository with full authority.
m. For the strengthening of the capital base of bank; and
n. To exercise the general powers mentioned in the Corporation Law and General
Banking Act