AGRARIAN REFORM

CONCEPTS

Reform - implies the existence of a defect that

something is deformed or malformed and does not suit
existing conditions.
 
Land Reform - refers to the full range of measures
that may or should be taken to improve or remedy the
defects in the relations among men (e.g., between the
tiller and owner of the land, employee and employer in a
farm) with respect to their rights in land.
- integrated set of measures designed to eliminate
obstacles to economic and social development arising
out of defects in the agrarian structures.
Agrarian Structure – is defined as a
complex set of relationship within the
agricultural sector between tenure
structure, production structure, and the
structure of supporting services.

 Tenure Structure — is a concept which

refers to one or more types of land tenure
systems regulating the rights to ownership
and control and usage of land and the
duties accompanying such rights
 Land tenure reforms would include the
following:
redistribution of private lands (through
expropriation or purchase);
distribution of lands in the public domain sometimes
also referred to as resettlement or colonization;
regulation of tenancy (e.g. provisions of penalties for
wrongly eviction of tenants, prohibition of subletting
by tenants);
regulation of agricultural labor contracts and wages;
Elimination of absentee landlordism and transfer of
land ownership to the actual tiller.
Production Structure - is a concept which relates to the
nature, type and modus operandi as well as the actual
process of production or farm operation.
The following would fall under the production
reform measures:
1. consolidation of small, uneconomic holdings to ensure
optimum utilization;
2. imposition of a floor on holding of uneconomic size
beyond which subdivision is to he presented;
3. promotion of a cooperative or compact farming among
sub marginal farmers;
4. imposition of a ceiling on holdings of non-cultivating
owners; and
5. organization of crop rotation systems.
o Land tenure structure is a concept of “right in
land’ referring to ownership, lease, etc).
While production structure is the concept of
“production and use of land”.

o The structure of supporting services is a

concept which involves matters like credit,
marketing. The supplying of agricultural
requisites, processing, storage, etc., and other
technical assistance and/or services as far as
they have some immediate bearing on
reforms of tenure and production structures.
Agrarian reform is considered wider than land
reform. It comprises not only land reform but also
reforms and development of complimentary
institutional framework such as the
administrative agencies of the national
government created to undertake land reform,
local governments, rural educational and social
welfare institutions, and voluntary associations
particularly farmers organizations.
In short, agrarian reform means solving the
agrarian problem and thereby elevate the quality
of life of the rural population and make them
active participants in the economic, social and
political affairs of their locality.
Examples of agrarian reform, measures
are the following:

1. public health programs

2. family planning
3. educational and training of farmers
4. reorganization of land reform agencies
5. application of labor laws
6. construction of infrastructure facilities
7. providing employment to
underemployed
 ASPECTS OF AGRARIAN REFORM
A. Economic Aspect of Agrarian Reform
 Vital position of agriculture in national economy. IT is
in the agricultural sector that the battle for long term
economic development in the Philippines will be won
or lost.
 Obstacles to agricultural productivity. Low agricultural
productivity in less developed countries results from
the interplay of many factors, including small size of
farms, lack of capital and hence, poor technology and
primitive methods of production, economic ignorance,
a value system and social structure that minimize the
incentives for economic change, inefficient marketing
systems and lack of entrepreneurship.
Agrarian reform, an instrument for
increasing agricultural productivity.
The economic reason for agrarian
reform in the Philippines is its
potentialities for raising agricultural
productivity. One method of
motivating farmers to increase their
output is to make them own the land
they till to free them from the bondage
of the landlords, not necessarily from
the soil.
 B, Socio-Cultural Aspect of
Agrarian Reform

1.  Agrarian reform, a
multifaceted program. It
implies socio-cultural
transformation.
 2. Assumption about Filipino Tenant
Farmers.
a) The tenancy problem has its roots in pre-
Spanish and Spanish pasts.
b) Deeply rooted in history, the tenancy system
created a kind of tenants who are strongly
traditional and highly dependent minded.
c) There are only three kinds of landlords; the
benevolent — one who acts like a father to the
tenant; the malevolent — one who oppresses;
and one with the combined characteristics of
the first two.
3. Socio-cultural changes from agrarian
reform.
a) A change from self-subsistent outlook to
one of surplus.
b) A sound social order in the farming villages
was enhanced significantly.
c) Farmer’ initiative and active participation
in leadership roles were promoted.
d) As land reform enhanced agricultural
productivity and consequently, increased net
family income, the farmers were able to send
their children to school.
 C. Religious Aspect of Agrarian
Reform

Biblical background - Basic in

biblical thinking is that God is the
owner of the earth and that he
make it all for his children.
 
Papal teachings. The Vatican II Decree “Pastoral
on the Church in the Modern World”. Says; man
should regard the external things that he
legitimately possesses not only as his own but
also as common in the sense that they should be
able to benefit not only him but also others;”

Church estates. In the aspirations for land, the

people rarely found help and understanding in
the leaders of the church. On the contrary, some
revolts directly involved lands owned by the
hierarchical church.
 D. Moral of Agrarian Reform
 One reason concerns the peace and
internal stability of the country.
 Another reason for agrarian reform is
the fact that the land owner has been
more than compensated for his
investment on the land, which the
tenant who made the landlords
profits possible is still immersed in
poverty.
 There is also the question of
injustice involved in landlordism.
Share tenancy is an unjust system.

 Another consideration concerns the

economy. It is contented that the
appropriation of lands and their
equitable redistribution to the
people is the clue to national
progress.
 E. Legal Aspect of Agrarian Reform

1. Two vantage points. The first is strictly

legal, and the second sociological.
2. Agrarian reform legislation to
conform to constitution.
3. Constitutional mandates.
4. Policy development concerning
agrarian reform.
 F. Political Aspects of Agrarian Reform

1. Agrarian reform, a top priority goal

of government.

2. Agrarian reform as a political

process. It is ultimately the
product of the more deliberate
political decisions.
 REQUIREMENTS FOR SUCCESSFUL
IMPLEMENTATION OF AGRARIAN REFORM

 It is necessary that any organization for

its implementation should provide for a
line of command from the center to field
levels in order to insure that the policy is
enforced and supported at all levels.
 It is essential that the beneficiaries are
provided with the necessary supporting
services.
 It is necessary that the administrative
organization and procedures as well as
the judicial system by which the newly
conferred rights are to be enforced, are
refashioned in such a manner as to
enable the attainment of the
objectives of the program.
 It is desirable to involve the
beneficiaries in the implementation of
the program.
 THE PHILIPPINE AGRARIAN
PROBLEM
1. Two important dimensions — the land and the
people the agricultural and the social
productivity and human rights.
2. A basic problem of Philippine society. Because
the farmer is poor, he cannot afford to pay more
taxes and thus, government cannot raise
sufficient revenues with which to support its
operations.
3. Basically a question of land distribution and
utilization.
 NECESSITY OF AGRARIAN REFORM IN
THE PHILIPPINES
 
The Philippines has some of the most fertile
lands in the world, yet agricultural production is
one of the lowest and the small farmers who
constitute the bulk of our population, are among
the most impoverished. Land reform would
increase their production, set them free from
poverty and debt, and make them dignified
participants in nation building.
Agrarian reform would liberate the
capital for investment in new
industries. This would increase
production and provide employment to
our expanding population and of
course, raise general standard of living.

Land reform is the answer indeed to

the communist challenge.
It will correct the present imbalance in
our society where there are enormous
concentrations of land, wealth and
political power in the hands of a few.

Not The least, the land reform program

will make democracy truly meaningful
to our people.
 OBJECTION TO AGRARIAN REFORM
 
1. Fragmentation of farm holdings - wholesale
reduction in the size of farm units.
2. Small farms uneconomic - small farms are most
productive and economical only when operated
on a big scale.
3. Small landholdings included - big percentage of
landowners.
4. Agrarian reform failed in the past - lands given
in the past have either been sold by the tenant
or have not them.
 Reasons for the failure:
1. The program stopped at land
distribution

2. Farmers were not prepared to take on

the responsibilities

3. There was haphazard planning

 THE COMPREHENSIVE AGRARIAN REFORM
PROGRAM
A. COVERAGE

Scope of Agrarian Reform

 
In general - The CARP of 1988 covers,
regardless of tenurial arrangement and
commodity produced, all public and
private agricultural lands including
other lands of the public domain
suitable to agriculture.
In particular - more specifically, the following land
are covered by the CARP.

a. All alienable and disposable lands of the public

domain devoted to or suitable for agriculture.
b. All lands of the public: domain in excess of the
specific limits as determined by congress taking
into account ecological, developmental and equity
considerations;
c. All other lands owned by the government devoted
to or suitable for agriculture;
d. All private lands devoted to or suitable for
agriculture regardless of the agricultural products
raised or that can be raised thereon.
 Schedule of implementation - the distribution of all
lands covered by the act shall be implemented
immediately and completed within 10 years from the
effectively thereof.

Retention Limits 
General Rule
Landowners — 5 hectares
Each child of landowner — 3 hectares subject to
the following qualifications:
a. That he is at least 15 years of age
b. That he is actually tilling the land or
directly managing the farm
Exceptions:

Landowners whose lands have

been covered by PD 27.

Original homestead grantees or

their direct compulsory heirs who
still own the original homestead.
 Validity of land transactions
  Upon the effectively of the act, any sale,
disposition, management contract or transfer of
possession of private lands executed by the
original landowner in violation of the act shall
be null and void. Those executed prior to the act
shall be valid only when registered with the
Register of Deeds within a period of 3 months
after the effectively of the act. Thereafter, all
register of deeds shall inform in the DAR within
30 days of any transaction involving agricultural
lands in excess of 5 hectares.
Registrable transaction w/o need of prior
clearance
 
1. Deed of extra judicial partition of the property
of a deceased who died prior to June 15, 1988; 
2. Deed of partition of property owned in common
by co-owners prior to June15, 1928;
3. Sub-division of title without change of
ownership;
4. Deed of real estate mortgage executed by the
original landownership of beneficiary.
Procedure in the issuance of clearance

1. A written request shall be filed by the applicant with

the Municipal Agrarian Reform Officer (MARO) with
the following documents;
a.) Deed of instrument to be registered.
b.) OCT/TCT or tax declaration if the land is not
covered by a certificate of title;
c.)Affidavit of transferee that he/she and spouses have
a total landholding inclusive of the and to he
acquired of not more than 5 hectares.
d.) Affidavit of transferor stating that the land subject
of deed is a retention or portion of the retention
area.
2. The MARO shall determine the accuracy/truth
of the instrument/deed and affidavit as well as to:

a.) Conduct field verification whether or not

the subject land s tenanted by a person other
than the transferee.
b.) Ascertain the subject land if the same is a
retention or part of the retention area of the
vendor/transferor.
c.) Determine whether or not the total
landholding of transferee and h spouse will, as
result of the deed exceed landownership ceiling.
3. The MARO shall forward the request and all the
attached documents 10 the PARO with comments
and recommendation.

4. The PARO shall examine the request and all the

attached documents. If in order, to issue
clearance for the registration of the subject deed;
and

5. The register of Deeds shall inform the DAR

within 30 days of any transaction involving land
in excess of 5 hectares.
 
 Right to choose area to be retain 
General rule - the right: to choose the area to
be retained, which shall be compact or
contagious. shall pertain to the landowner.

Exception — In case the area selected For

retention by the landowner if tenanted, the
tenancy 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 n the
retained area, he shall be considered a
leaseholder and shall lose his right to be
beneficiary under the act.

in case the tenant chooses to be beneficiary

in another agricultural land, he loses his
right as a leaseholder to the land retained by
the landowner. The tenant must exercises
this option within a period of 1 year from
the time the landowner manifests his choice
of the area of retention.
Order of Priority

The DAR in coordination with the

PARC shall plan and program the
acquisition and distribution of all
agricultural lands through the
period of 10 years from the
effectively of the ACT.
Phase One:
 
1. Rice and Corn lands under PD # 27;
2.  All idle or abandoned lands; 
3. All private lands voluntarily offered by the owners for
agrarian reform;
4. All lands foreclosed by the government financial
institutions;
5. All lands acquired by the PCGG; and 
6. All other lands owned by the government devoted to
or suitable for agriculture which shah be acquired
and distributed immediately upon the effectively of
the ACT. The implementation shall he completed
within the period of not more than years;
Phase Two:
 
1. All alienable and disposable public agricultural
lands; 
2. All arable public agricultural lands under the
agro-forest, pasture and agricultural leases
already cultivated and planted to crops. 
3. All public agricultural lands which are to be
opened for new development and resettlement;
and
4. All private agricultural lands in excess of fifty
(50) hectares.
 
Phase Three:

1. Landholding above twenty four

(24) hectares up to 50 hectares, to
begin on the fourth year from the
effectivity of the Act.
Lands held by Multinational Corporations
government owned or controlled corporations

-its implementation to be completed

within three years.

Multinational Corporation (MNC) is an

international or transactional corporation
with headquarters in one country but has
branch offices in a wide range of both
developed and developing countries.
Commercial Farming
Commercial farms are private agricultural
lands devoted to commercial livestock,
poultry, and swine rising, and agriculture
including salt beds, fishponds, fruit farms,
orchards, vegetable and cut flower farms,
and cacao, coffee and rubber plantations.
1. They shall be subject to immediate
compulsory acquisition and
distribution after 10 years.

2. In the case of new farms, the 10 year

period shall begin from the first year
of commercial production and
operation, as determined by the DAR.
Ancestral Lands

Ancestral lands of each indigenous

cultural community include, but are not
limited to, lands in the actual, continuous
and open possession and occupation of the
community and members.
The right of those communities to their
ancestral lands shall be protected to ensure
their economic, social and cultural well
being.
Exemptions and Exclusions
The following are exempt from the coverage
of the acts:

1. Lands actually, directly

and exclusively used and
found to be necessary for:
A.) parks, wildlife, forest reserves; reforestation,
fish sanctuaries and breeding grounds, water
sheds and mangroves;
B.) national defense
C.) church sites and convents, mosques sites
and Islamic centers;
D.) commercial burial grounds and cemeteries;
C.) penal colonies and penal farms actually
worked by the inmates

2.) All lands with 18% slope and over, except

those already developed.
 B. IMPROVEMENT OF TENURIAL AND LABOR
RELATIONS]

Agricultural Leasehold and Lease Rental

Determination

By operation of law, all share crop tenants

of covered agricultural lands are
automatically converted into agricultural
lessees as of June 15, 1988; the date of the
effeclivity of the Acts;
 The lease rental to be paid by all
agricultural lessees shall not be more
than the equivalent of 25% of the
average normal harvest during the
three (3) agricultural years immediately
preceding June 15, 1988; after deducting
the amount used for seeds and the cost
of harvesting, threshing, loading,
hauling and processing, or whichever is
applicable.
 Procedure governing determination of
lease rental for tenanted lands

1. Identification phase by the MARO.

2. Determination and fixing of rental by
MARO and BARC.
3. Documentation phase.
4. Submission or recommendation to
PARO.
5. Resolution of protest to the DAR
adjudication within 1 5 days.
C. REGISTRATION 
Registration of Landowner

Within 180 days from the effectivity of the

ACT, all persons, natural or juridical,
including government, entities that own or
claim to own agricultural lands, whether in
their names of others shall file a sworn
statement in the proper assessors office in
the form to be prescribed by the DAR,
stating the following information’s:
1.) the description and area of the property;
2.) the average gross income from the property for
at last 3 years; 
3.) the names of all tenants and farm workers
therein; 
4.) the crops planted in the property and the area
covered by each crop as of June 1, 1987; 
5.) the terms of mortgages, leases, and
management contracts existing as of June 1.
1987; 
6.) the latest declared market value of the land as
determined by the city or provincial assessor.
Registration of beneficiaries 

The DAR, in coordination with the

BARC, shall register all agricultural
lessees, tenants and farm works who are
qualified to be beneficiaries of the
CARP with the following data:
1. Names and members of their
immediate farm household; 
2. Owners or administrators of the lands
they work on and the length of
tenurial relationship; 
3. Location and area of the land they
work;
4. Crops planted; and
5. Their share in the harvest or amount
of rental or wages received.
 LAND ACQUISITION AND REDISTRIBUTION

Procedure for acquisition of private lands

Valuation of the land;

Notice from DAR to landowner of offer to acquire

land;

Acceptance or rejection by landowner of offer

within 30 days from the receipt of written notice,
landowner shall inform the DAR of his
acceptance or rejection of the offer.
Payment in case of acceptance within 30
days after he executes and delivers a deed of
transfer.

Determination of compensation in case of

rejection.

Taking of possession and redistribution.

Appeal to court.
Qualified Beneficiaries
 

The lands covered by the CARP

shall be distributed as much as
possible to landless residents of the
same barangay, or in the absence
thereof, landless of the same
municipality in the following order
of priority:
 
a. agricultural lessees and share tenants; 
b. regular farm workers; 
c. seasonal farm workers; 
d. other farm workers; 
e. actual tillers or occupants of public
lands; 
f. collectives or cooperatives of the
above beneficiaries; and 
g. others directly working on the land.
The children of landowners who are qualified
shall be given preference in the distribution of
the land of their parents.
Actual tenant-tillers in the landholding shall not
be ejected or removed there from.
 Beneficiaries under PD 27 who have culpably
sold, disposed of, or abandoned their lands are
disqualified to become beneficiaries of the
program.
A basic qualification of a beneficiary shall be his
willingness, aptitude, and ability to cultivate and
make the lands as productive as possible.
 If, due to the landowners retention rights or to
the number of tenants, lessees, or workers on
the land, there is no enough land to
accommodate any or some of them, they may be
granted ownership of other lands available for
distribution under the act.
 Farmers already in place and those not
accommodated in the distribution of privately-
owned lands will be given preferential rights in
the distribution of lands from the public
domain.
 No qualified beneficiary may own more than 3
hectares of agricultural land.
Award ceiling for beneficiaries
 
Beneficiaries shall be awarded an area not
exceeding 3 hectares which may cover a
contiguous tract of land or several parcels of land
cumulated U to the prescribed award limits. 
Payment by beneficiaries

Lands awarded pursuant to the act shall be paid

for by the beneficiaries to the LBP in 30 annual
armortization at 6% interest per annum.
 
Transferability of awarded lands

1. Lands acquired by beneficiaries under the act may not

be sold transferred or conveyed except through
hereditary succession, or to the government, or to the
LBP, or to other qualified beneficiaries for the period of
10 years. However, the children or the spouse of the
transferor shall have a right to repurchase the land
from the government or LBP within a period of 2 years.
2. If the lands has not been fully paid by the beneficiary,
the rights to the land may be transferred or conveyed,
with prior approval of the DAR, to any heir of the
beneficiary who, as a condition for such transfer or
conveyance, shall cultivate the land himself.
E. COMPENSATION 
Determination of just compensation

a. In determining just compensation, the following

shall be considered: 
b. the cost of acquisition of the land; 
c. the current value of like properties; 
d. its nature; 
e. actual use and income;
f. the sworn valuation by the owner; 
g. the tax declarations and
h. the assessment made by the government
assessors.
Modes of compensation 

The compensation shall be paid in one of the

following modes, at the option of the a landowner:

1.) Cash payments, under the following terms

and conditions;
a. For lands above 50 hectares, in so far as the
excess hectare is concerned - 25% cash, the
balance to be paid in government financial
instruments negotiable at any time.
b. For lands above 24 hectares and up to 50
hectares - 30% cash, the balance to be paid
in government financial instruments
negotiable at any time.

c. For lands 24 hectares and below — 35%

cash, the balance to he paid in government
financial instruments negotiable at any
time.
 
1. Shares of stock in government - owned
or controlled corporations, LBP
preferred shares, physical assets or
other qualified investments in
accordance with guidelines set by the
PARC.
2. Tax credits which can be used against
any tax liability; and Land Bank of the
Philippines bonds.
F. SUPPORT SERVICES
Support services to the beneficiaries

1. Land surveys and titling; 

2. Liberalized terms on credit facilities and production
loans. 
3. Extension services by way of planting, cropping,
production and post-harvest technology transfer; as well
as marketing and management assistance arid support to
cooperatives and farmers organizations;
4. Infrastructure such as access trails, mini dams, public
utilities, marketing and storage facilities: and
5. Research, production and use of organic fertilizers and
other local substances necessary to farming and
cultivation.
 Support services to landowners 

1.) The PARC, with the assistance of such

other government agencies and
instrumentalities as it may direct, provides
landowners affected by the CARP and prior
agrarian reform programs with the
following services;
a.) Investment information, financial and
counseling assistance;
b.) Facilities, programs and schemes for the
conversion on exchange of bonds issued by the
National Government and Central Bank and
other government institutions and
instrumentalities.
c.) Marketing of LBP bonds, as well as promoting
the market ability 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.
2.) A landowner who invests in rural-based
industries shall he entitled to the incentives
granted to a registered enterprise engaged in a
pioneer or preferred area of investment.

3.) 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 30% of the face
value of said LBP bonds subject to guidelines
issued by the LBP.
 Integrated approach to agrarian
reform
 
The Comprehensive Agrarian Reform
Program of the government is an
integrated plan of action in solving the
problems of low productivity and
poverty of our farmers. The integrated
program consists of 5 major
components:
Land tenure improvement - this is aimed of
making every tenant tiller own the land he tills.

 Institutional development - this involves the

development of the appropriate rural based institutions
that would eventually release the tiller from pernicious”
institutional restraints and practices, especially in the
aspect of farm financing, marketing, and procurement of
agricultural inputs.

 Agricultural development - this is aimed at increasing

per hectare yield of the emancipated tenants, thereby
improving their standard of living.
Physical development - this consists of providing
the infrastructure supportive of agrarian reform,
such as irrigation system, farm to market roads,
ports, bridges, school buildings, health centers
and other infrastructures, including rural
electrification’s. 

Personnel training and clientele development —

the continuing education program for agrarian
reform is being carried out by the Bureau of
Agrarian Reform Information and Education.
 Implementation and coordinating
mechanism

The Department of Agrarian Reform (DAR) is the

lead agency in the CARP implementation.

The Presidential Agrarian Reform Council

(PARC) in the highest policy making and
coordinating body on all matters concurring
agrarian reform change with the task of
coordinating the implementation of the program
and ensuring the timely and effective delivery of
the necessary support services. 
The Provincial Agrarian Reform
Coordinating Council (PARCCOM) is in
charged with the province by province
implementation of the CARP.

The Barangay Agrarian Reform Council

(BARC) is in charge with the task of acting
on matters related to agrarian reform at the
barangay level.
Prohibited acts and omissions
The following are prohibited:

The ownership or possession, for the purpose of

circumventing the provisions of the act, of
agricultural lands in excess of the total retention
limits or award ceilings by any person, natural or
juridical except under those collective ownership
by farmer-beneficiaries; 

The forcible entry of illegal detainee by persons

who are not qualified beneficiaries under the act;
The conversion by any landowner of his
agricultural land into any non- agricultural
use with intent to avoid the application of
the ACT to his landholdings and to
dispossess his tenant farmers of the land
tilled by the them;

The willful prevention or obstruction

by any person, association or entity of
the implementation of the CARP;
The sale, transfer or conveyance by
a beneficiary of the right to use or
any other us ufructuary right over
the land he acquired by virtue of
being a beneficiary, in order to
circumvent the provisions of the
act.
Penalties

Any person who knowingly or willfully

violates the provisions of the act shall be
punished by imprisonment of not more
than one (1) month to not more thin three
(3) years or a fine of not less than P1,000 or
not more than P15,000, or both at the
discretion of the court.
If the offender is a corporation or
association, the officer responsible shall or
criminally liable.