CARP PPT Presentation Og Usec LP

Republic of the Philippines
DEPARTMENT OF AGRARIAN REFORM

Kagawaran ng Repormang Pansakahan
REGALIAN DOCTRINE

All lands of the public domain, waters, minerals, coal,
petroleum, and other mineral oils, all forces of potential
energy, fisheries, forests or timber, wildlife, flora and
fauna, and other natural resources are owned by the State.
With the exception of agricultural lands, all other natural
resources shall not be alienated. The exploration,
development, and utilization of natural resources shall be
under the full control and supervision of the State.
Section 2, Article XII, 1987 Philippine Constitution

CONCEPT OF AGRARIAN REFORM

• Redistribution of lands
• Farmers or regular farmworkers
• Regardless of fruits or crops produced
• Irrespective of tenurial arrangements

• Includes totality of support services
• Designed to lift the economic status of the

beneficiaries

CONSTITUTIONAL BASIS

It is the policy of the state to pursue and agrarian reform
program founded on the right of farmers and regular
farmworkers who are landless, to own directly or collectively
the lands they till or, in the case of other farmworkers, to
receive a just share of the fruits thereof.
1987 Philippine Constitution, Article XIII, Sec. 4

The State shall encourage and undertake the just distribution
of all agricultural lands, subject to such priorities and
reasonable retention limits as the Congress may prescribe,
taking into account ecological, developmental, or equity
considerations, and subject to the payment of just
compensation. In determining retention limits, the State shall
respect the right of small landowners. The State shall further
provide incentives for voluntary land-sharing.
1987 Philippine Constitution, Article XIII, Sec. 4

CONSTITUTIONAL LIMITATION

The Congress shall give highest priority to the enactment of
measures that protect and enhance the right of all people to
human dignity, reduce social, economic and political
inequalities and to remove cultural inequities by equitably
diffusing wealth and political power for the common good.
To this end, the State shall regulate the acquisition, ownership,

use and disposition of property and its increments.
Article XIII Section 1, 1987 Constitution

STATUTORY LIMITATIONS

REPUBLIC ACT 6657, as amended, otherwise
known as the Comprehensive Agrarian
Reform Law, regulates the ownership,
disposition and use of agricultural lands.

The State shall be guided by the principles that land has a
social function and land ownership has a social
responsibility. Owners of agricultural land have the
obligation to cultivate directly or through labor
administration the lands they own and thereby make the
land productive.
RA 9700, Section 2

The use, enjoyment, occupation or disposition of
private property is not absolute. It is predicated on the
social functions of property. It is restricted in a sense
so as to bring maximum benefits to all and not to a few
chosen individuals.
Felisa Ferrer vs. Carganillo, et al.

(GR No. 170956 12 May 2010)

THE POWERS OF DAR

QUASI-LEGISLATIVE POWERS OF THE DAR
The DAR (and the PARC) shall have the power to

issue rules and regulations, whether substantive or
procedural, to carry out the objectives and the
purposes of this Act. Said rules shall take effect ten
(10) days after publication in two national
newspapers of general circulation.
(Section 49, RA 6657, As Amended)

QUASI-JUDICIAL POWERS OF THE DAR
The DAR is hereby vested with primary jurisdiction to

determine and adjudicate agrarian reform matters and shall
have exclusive original jurisdiction over all matters involving
the implementation of agrarian reform, except those falling
under the exclusive jurisdiction of the Department of
Agricultural (DA) and the Department of Environment and
Natural Resources (DENR).
(Section 50, RA 6657, As Amended)

THE PRESIDENTIAL
AGRARIAN REFORM
COUNCIL (PARC)
PARC is the highest policy- and decision-
making body for agrarian reform matters and
disputes. The President presides as chair, with
the agrarian reform secretary as vice-chair.

MEMBERSHIP
• President of the Philippines as Chairperson
• Secretary of Agrarian Reform as Vice-Chairperson
• Secretaries of the Cabinet:
• OES, DA, DENR, DBM, DILG, DPWH, DTI, DOF, DOLE,
NEDA, LBP, NIA, LRA
• Sectoral Representatives:
• Six (6) representatives of affected landowners
• Six (6) representatives of agrarian reform beneficiaries.
AGRICULTURAL LAND

Land devoted to agricultural activity.
Land not classified as mineral, forest,

residential, commercial or industrial land.
AGRICULTURAL ACTIVITY

• Cultivation of the soil
• Planting of crops
• Growing of fruit trees
• Harvesting of farm products
• Other farm activities and practices performed
by a farmer in conjunction with such farming
operations done by person whether natural or
juridical
SPECIFIC LANDS COVERED BY
CARP

All alienable and disposable lands of the public domain devoted to or
suitable for agriculture.
All other lands owned by the Government devoted to or suitable for
agriculture.
All private lands devoted to or suitable for agriculture regardless of
the agricultural products raised or that can be raised thereon.

AGRICULTURAL LANDS ARE
SUBJECT TO AGRARIAN
REFORM
AGRICULTURAL LANDS ARE
SUBJECT TO AGRARIAN
REFORM
• Landowner can only own a maximum area of five (5) hectares
• Landholdings beyond the ownership ceiling is subject to
acquisition by the State
• Acquisition is subject to just compensation
• Lands acquired by the State are distributed to qualified farmer-

beneficiaries (FBs)

• Qualified FBs pay amortization for 30 years subject to 6% interest
(per annum)
• Qualified FBs are prohibited to transfer ownership of the awarded

lands within ten years from registration of CLOA or EP
• FBs must cultivate and make the land productive

INSTANCES WHEN
AGRICULTURAL LANDS ARE NOT
COVERED BY AGRARIAN
REFORM

EXCLUSION
EXEMPTION
CONVERSION

THE CONCEPT OF EXCLUSION

The act or process of exempting the lands
from agrarian reform program due to the fact
that said lands are actually, directly and
exclusively (ADE) used and found to be
necessary for education, religion, military,
penal and other purposes.

EXAMPLES OF A.D.E LAND
USES

• Parks • School sites and campuses
• Wildlife • Church sites / places of worship
• Forest reserves • Communal burial grounds /
• Reforestation cemeteries
• Penal colonies / Penal farms
• Fish Sanctuaries and
• Government and private research
Breeding Grounds
and quarantine centers
• Watersheds • Lands with 18% slope and over
• Mangroves (undeveloped)
• National defense

THE CONCEPT OF
EXEMPTION

The act or process of excluding lands from
coverage of agrarian reform program solely
because said lands are devoted to livestock
and poultry.

In Luz Farms v. Secretary of DAR, the
Supreme Court ruled that lands devoted to
livestock and poultry-raising are not included
in the definition of agricultural land.
G.R. No. 86889

December 4, 1990

Private lands actually, directly and exclusively used for prawn
farms and fishponds shall be exempt from the coverage of CARP.
Provided, That said prawn farms and fishponds have not been
distributed and Certificate of Land Ownership Award (CLOA)
issued to agrarian reform beneficiaries under the Comprehensive
Agrarian Reform Program.
RA 7881, Section 2-b

THE CONCEPT OF CONVERSION

The act or process of changing the current
physical use of a piece of agricultural land to
non-agricultural purpose/s, such as residential,
commercial, and/or industrial

EXAMPLES OF PROJECTS WITH
RESIDENTIAL PURPOSE

COMMERCIAL PURPOSE

INDUSTRIAL PURPOSE

CONVERSION &
RECLASSIFICATION

CONVERSION
Conversion is the act of changing the current

use of a piece of agricultural land into some
other use as approved by DAR.

RECLASSIFICATION
Reclassification is the act of specifying how

agricultural lands shall be utilized for non-
agricultural uses as determined by a Local
Government Unit

Mere reclassification of an agricultural land does not
automatically allow a landowner to change its use.
One has to undergo the process of conversion before
being permitted to use the agricultural land for
other purposes.
(CREBA vs DAR) G.R. No. 183409 June 18, 2010

REQUISITES FOR CONVERSION

• Land has ceased to be economically feasible and sound for
agricultural purposes.
• Locality has become urbanized
• Land will have a greater economic value for non-agricultural

purposes.
• Land is neither irrigated nor irrigable.

• (Section 65, RA 6657, as amended)

PROCEDURE FOR CONVERSION

• FILE APPLICATION
• PAY FILING FEES, INSPECTION COSTS and POST

BONDS
• SUBMIT THE FOLLOWING:

• PROOF OF FINANCIAL CAPACITY
• CERTIFICATIONS FROM GOVERNMENT AGENCIES
• DEVELOPMENT PLAN

IMPORTANCE OF DEVELOPMENT
PLAN

Failure to implement the conversion plan within five
(5) years from the approval of such conversion plan
will result to revocation of the conversion order,
bond forfeiture and immediate coverage under
CARP of the landholding.
RA 9700, Section 22

GROUNDS FOR THE REVOCATION
OF CONVERSION GRANT

• Violation of any of the conditions of the conversion grant
due to the fault of the applicant
• Alteration of the Development Plan without DAR approval
• Failure to implement the Development Plan within five (5)

years

CONDITIONS FOR THE GRANT OF
CONVERSION

• Posting of Performance Bond
• Payment of Disturbance Compensation to affected

Farmers
• Full adherence to the Development Plan
• Annotation of the conversion grant on the title

EFFECTS OF REVOCATION

• Automatic Coverage under CARP
• Automatic Reversion to Agricultural Land

Classification
• Forfeiture of Bonds

ILLEGAL CONVERSION

• Actual use of the land for non-agricultural purpose
without DAR Approval.
• Intent to avoid application of CARP in the landholding.
• Intent to dispossess any farmer tilling the land.
(Section 73-c of RA 6657, as amended)

• Undertaking of any development activity without DAR
conversion order.
• Development activity will alter physical characteristics

of the land.
• Alteration renders land suitable for non-agricultural

purposes without DAR conversion order.
RA 8435 (AFMA Law)

ADMINISTRATIVE SANCTIONS
FOR ILLEGAL & PREMATURE
CONVERSION

 Revocation or withdrawal of the conversion order
 Blacklisting of the applicant, developer or representative
 Automatic disapproval of conversion applications
 Issuance of cease and desist order by the Secretary or Regional
Director, as the case may be, upon verified reports that
premature, illegal or unauthorized conversion activities are being
undertaken
 Forfeiture of cash bond or performance bond

CRIMINAL SANCTIONS FOR
ILLEGAL CONVERSION

Imprisonment of six (6) years and one (1) day to twelve
(12) years or a fine of not less than Two hundred thousand
pesos (P200,000.00) and not more than One million pesos
(P1,000,000.00), or both, at the discretion of the court upon
any person who violates Section 73, subparagraphs (c), (d),
(e), and (i) of Republic Act No. 6657, as amended.
Section 74 of RA 6657, As Amended

CRIMINAL SANCTIONS FOR
PREMATURE CONVERSION

 Imprisonment of two (2) to six (6) years
 A fine equivalent to one hundred percent (100%)

of the government's investment cost
RA 8435 AFMA Law

CARP FACTS &
FIGURES

LAD
ACCOMPLISHMENT
1972 – 2016

4, 761, 831
HECTARES
2, 805, 872
ARBs

CONVERTED & EXEMPTED
LANDS

CONVERTED 80, 126.5226
LANDS HECTARES (1988-Present)
EXEMPTED 87, 525.1371

LANDS HECTARES (1988-Present)

REGISTERED EPs/CLOAs AS OF
2016

INDIVIDUAL 1, 721, 811 (41%)
CLOAs HECTARES
COLLECTIVE 2, 488, 755 (59%)

CLOAs HECTARES

CUMULATIVE LAND
DISTRIBUTION
ACCOMPLISHMENT (1972-2015)

Landed Estates

ISSUES AND CONCERNS

• CARPER DEADLINE
• CONVERSION OF AGRICULTURAL LANDS

• CONVERSION & RECLASSIFICATION
• INDIVIDUAL & COLLECTIVE CLOAs
• OWNERSHIP CEILING
• TRANSFER OF OWNERSHIP

CARPER DEADLINE

• Section 5 of RA 9700 designated June 30 2014 as the last day for
the issuance of Notice of Coverage (NOC).
• Section 30 of RA 9700 provides that all cases or proceedings

pending on June 30 2014 shall proceed to its finality.
• Section 63 of RA 9700 provides, after LAD completion, yearly

appropriation shall be allocated to Support Services, Agrarian
Justice Delivery and Operational requirements.

CONVERSION OF
AGRICULTURAL LANDS

Conversion cases maybe filed by the Landowner
with respect to his/her retention area or the
beneficiary with respect to his/her awarded land.
RA 9700, Section 22

DAR has the power to approve or disapprove
conversion of Agricultural Lands to non-
agricultural lands.
EO 129-A, Section 4-k

CONVERSION AND
RECLASSIFICATION

A city or municipality may, through an ordinance passed by
the sanggunian after conducting public hearings for the
purpose, authorize the reclassification of agricultural lands
and provide for the manner of their utilization or disposition
in the following cases:
a) When the land ceases to be economically feasible and sound
for agricultural purposes as determined by the Department of
Agriculture
b) Where the land shall have substantially greater economic value
for residential, commercial, or industrial purposes, as
determined by the sanggunian concerned
RA 7160, Section 20 (a)

• After the lapse of five (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.
RA 9700, Section 22

• 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 ten
percent (10%) of the proceeds coming from the conversion in
government securities
• The applicant upon conversion shall fully pay the price of the land
• That irrigated and irrigable lands, shall not be subject to conversion

RA 9700, Section 22

• Failure to implement the conversion plan within five (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.
RA 9700, Section 22

USE OF THE COMPREHENSIVE LAND USE PLANS
AND ORDINANCES AS PRIMARY REFERENCE
DOCUMENTS IN LAND USE CONVERSIONS:
Pursuant to RA 6657 [as amended] and EO 129-A, actions on

applications for land use conversions on individual landholdings
shall remain as the responsibility of DAR, which shall utilize as its
primary reference documents the comprehensive land use plans
and accompanying ordinance passed upon and approved by the
LGUs concerned, together with the National Land Use Policy.
MC No. 54 s. 1993

INDIVIDUAL & COLLECTIVE
CLOA

The general rule is FB should get an individual title,
but the collective CLOA is allowed:
• ARBs opts for collective ownership

• Farm Management System favors collective farming
• Labor system is specialized
• Farm consists of multiple crops
Section 10 of RA 9700

OWNERSHIP CEILING

Landholdings with an area of five (5) hectares and
below shall not be subjected to LAD
Retention Limits do not apply to LGUs, in case of

expropriation and the modes of acquisition for ADE
purposes
RA 9700, Section 3

TRANSFER OF OWNERSHIP

Allowable transfers:
• Hereditary Succession
• Government Purchase
• Sale to third parties after the lapse of 10 years
and full payment of amortization
RA 9700, Section 12

“Social Justice is neither communism, nor
despotism, nor atomism, nor anarchy, but the
humanization of laws and the equalization of social
and economic forces by the State so that justice in
its rationale and objectively secular conception
may at least be approximated.”
Justice Jose Laurel
Calalang vs. Williams
GR No. 47800, December 2 1940

MARAMING
SALAMAT!
CHALLENGES AND
OPPORTUNITIES IN
AGRARIAN REFORM

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Republic of the Philippines

DEPARTMENT OF AGRARIAN REFORM

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

• Designed to lift the economic status of the

Republic of the Philippines

Republic of the Philippines

1987 Philippine Constitution, Article XIII, Sec. 4

Republic of the Philippines

1987 Philippine Constitution, Article XIII, Sec. 4

Republic of the Philippines

Republic of the Philippines

To this end, the State shall regulate the acquisition, ownership,

Article XIII Section 1, 1987 Constitution

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Felisa Ferrer vs. Carganillo, et al.

Republic of the Philippines

Republic of the Philippines

The DAR (and the PARC) shall have the power to

(Section 49, RA 6657, As Amended)

Republic of the Philippines

The DAR is hereby vested with primary jurisdiction to

(Section 50, RA 6657, As Amended)

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Land not classified as mineral, forest,

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

• Acquisition is subject to just compensation

• Lands acquired by the State are distributed to qualified farmer-

Republic of the Philippines

• Qualified FBs are prohibited to transfer ownership of the awarded

• FBs must cultivate and make the land productive

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

G.R. No. 86889

Republic of the Philippines

RA 7881, Section 2-b

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Republic of the Philippines

Conversion is the act of changing the current

Republic of the Philippines

Reclassification is the act of specifying how

Republic of the Philippines