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THE COMPREHENSIVE AGRARIAN REFORM PROGRAM

Gomez, G., Hernandez, E., Lee, L., O,S., Palma, E., Rieza, E., Valen, J. and Yuson, J.

INTRODUCTION
March 25, 1986 - The President issued Proclamation No.3 promulgating a Provisional Constitution and exercised legislative power.

INTRODUCTION
(1) Proclamation No. 131 and Executive Order No. 229 - [July 22, 1987] the President signed the Proclamation No. 131 instituting a CARP and Executive Order No. 229 providing the mechanisms needed initially to implement the program (2) R.A. No. 6657 - a.k.a. Comprehensive Agrarian Reform Law - involves the implementation of agrarian reform

INTRODUCTION
(3) 1987 Constitution Ratified in February 2, 1987 Contains several provisions directly dealing with agrarian reform

KEY OBJECTIVES
1. Equity the ability of the of the beneficiaries to directly participate in nation building through equal land ownership structure 2. Capability allows the tenant-beneficiaries to manage reformed lands productively by giving them the support services that they need 3. Sustainability it incorporates the ecosystem and stakeholder approaches to land use and management

DEFINITION OF TERMS
AGRARIAN REFORM redistribution of lands to farmers and regular farm workers who are landless to include totality of factors and the support services designed to lift their economic status. AGRICULTURE the cultivation of the soil, planting of crops, growing of fruit trees and other activities by the farmer.

DEFINITION OF TERMS
AGRICULTURAL LAND land devoted to agricultural activity and not classified as mineral, forest, residential, commercial or industrial. AGRARIAN DISPUTE any controversy relating to tenurial arrangements. IDLE or ABANDONED LAND agricultural land not cultivated or developed to produced any crop nor devoted to any specific economic purpose.

DEFINITION OF TERMS
FARMER person whose livelihood is cultivation of land or the production of agricultural crops. FARMWORKER person who renders service for value as an employee or laborer in a farm. REGULAR FARMWORKER person who is employed on a permanent basis by a farm.

DEFINITION OF TERMS
SEASONAL FARMWORKER person who is employed on periodic or recurrent basis by a farm, whether as a permanent or nonpermanent laborer. OTHER FARMWORKER a farm worker who does not fall under the definition of three types of farmworker.

DEFINITION OF TERMS
COOPERATIVES organizations composed of small agricultural producers, farmers, farm workers or other agrarian reform beneficiaries who voluntarily organized themselves for the purpose of pooling land, human, technological, financial or other economic resources on the principle of one member, one vote.

DEFINITION OF TERMS
COMPULSARY ACQUISITION mandatory acquisition of agricultural lands including facilities and improvements necessary for agricultural production, as may be appropriate, for distribution to qualified beneficiaries upon payment of just compensation.

COVERAGE

*SCOPE

In General, it covers regardless of tenurial agreement and commodity produced, all public and private agricultural lands including other lands of public domain suitable for agriculture.

COVERAGE

*SCOPE

In Particular, it covers a. All alienable & disposable lands of public domain devoted to or suitable for agriculture b. All lands of public domain including forest or mineral lands reclassified to agricultural land after approval of Act in excess of specific limits as determined by Congress taking into acct. ecological development and equity considerations

COVERAGE

*SCOPE

c. All other lands owned by Government devoted to or suitable for agriculture. d. All private lands devoted to or suitable for agriculture regardless of agricultural products raised or that can be raised thereon

SCHEDULE OF IMPLEMENTATION *The distribution of all lands covered by this Act shall
be implemented immediately and completed within ten years from effectivity there of (June 15, 1988).

COVERAGE *RETENTION LIMITS


WHO MAY APPLY FOR RETENTION: a. Any person, NATURAL or JURIDICAL who owns agricultural lands with an aggregate area of more then 5 hectares may apply for retention. b. Land Owner who exercised his right of retention under PD 27 may NO LONGER exercise same right under R.A 6657.

COVERAGE *RETENTION LIMITS


c. Land Owner who owns 5 hectares or less which are not yet subject of coverage based on the schedule of implementation may also file application for retention and a certificate of retention shall be issued in his favor. d. Right of retention of a deceased Land owner may be exercised by his heirs provided that heirs must show proof that the decedent landowner had manifested during his lifetime his intention to exercise his right of retention prior to August 23, 1990.

COVERAGE *RETENTION LIMITS


Three hectares may be awarded to each child of the landowner, subject to qualifications: At least (15) years of age Actually tilling the land or directly managing the farm

COVERAGE *RETENTION LIMITS


Exceptions: Landowners whose lands have been covered by Presidential Decree No.27 shall be allowed to keep the area originally retained by them there under; Original homestead grantees or their direct compulsory heirs shall retain the same areas as long as they continue to cultivate

COVERAGE

*LAND HELD BY MULTINATIONAL CORPS & OTHERS

All lands of the public domain leased, held or possessed by multinational corporations or associations, and other lands owned by government ,etc. shall be programmed for acquisition.

COVERAGE

*LAND HELD BY MULTINATIONAL CORPS & OTHERS

The acquisition shall be disposed of as follows: Lease, management, grower or service contracts covering such lands covering an aggregate area in excess of 1000 hectares, leased by foreign individuals in excess of 500 hectares, are deemed amended top conform with the limits set forth in section 3 of Article XII.

COVERAGE

*LAND HELD BY MULTINATIONAL CORPS & OTHERS

Contracts covering areas not in excess of 1000 hectares in the case of such corporations and associations, and 500 hectares, in the case of such individuals, shall be allowed to continue under original terms In no case will such leases and other agreements now being implemented extend beyond August 29, 1992 when all lands subject hereof shall have been distributed completely to qualified beneficiaries or awardees.

COVERAGE

*LAND HELD BY MULTINATIONAL CORPS & OTHERS

Implementation not later than 10 years


Lands leased, held or possessed by multinational corporations, owned by private individuals and private non-governmental corporations, associations, institutions, and entities, citizens of the Philippines, shall be subject to immediate compulsory acquisition and distribution upon the expiration of the applicable lease, management grower of service contract in effect as of August 29, 1987, or otherwise, upon its valid termination, whichever comes sooner, but not later than after ten (10) years following the effectivity of this Act .

COVERAGE

*LAND HELD BY MULTINATIONAL CORPS & OTHERS

Distribution; formation of workers cooperative Lands shall be distributed directly to the individual worker-beneficiaries. In case it is not economically feasible and sound to divide the land, then they shall form a workers' cooperative or association which will deal with the corporation or business association or any other proper party, for the purpose of entering into a lease or growers agreement and for all other legitimate purposes.

COVERAGE

*LAND HELD BY MULTINATIONAL CORPS & OTHERS

Production and income sharing It shall apply to farms operated by multinational.


Modern technology in production The new owners shall be assisted in their efforts to learn modern technology in production.

COVERAGE *COMMERCIAL FARMING


Private agricultural lands devoted to agriculture This include salt beds, fruit farms, orchards, vegetable and cut-flower farms and cacao, coffee and rubber plantations.

COVERAGE *COMMERCIAL FARMS


Acquisition, valuation, compensation and distribution of deferred commercial farms. All farms whose deferment expired as of June 15, 1998 shall be subject to immediate acquisition and distribution under the CARP. Those whose deferments have yet to expire will be distributed only upon expiration of their respective deferments.

COVERAGE *COMMERCIAL FARMS


As a general rule, acquired commercial farms shall be distributed to qualified beneficiaries based on R.A. Section 22, No. 6657. The land owner whether individual or corporate shall have right to retention pursuant to Section 6 of R.A. No. 6657.

COVERAGE *ANCESTRAL LANDS


1. Protection of rights of indigenous cultural communities
Their rights to their ancestral land are protected to ensure their economic, social, and cultural well being. PARC may suspend the implementation of act to identify and delineating such land. In the autonomous region, they can enact their own laws

2. Suspension of implementation

3. Enactment of regional laws

COVERAGE *EXEMPTIONS & EXCLUSIONS


1. Under Sec. 10 of the act a. Lands that are exclusively used for: Parks, Wildlife, Forest reserve, and Reforestation Fish sanctuaries and breeding grounds Watersheds and Mangroves b. Private Lands are exclusively used for Prawn farms and Fishponds

COVERAGE *EXEMPTIONS & EXCLUSIONS


c. Lands exclusively used for: National defense School sites & Campuses for educational purposes, seeds & seedlings, research and pilot production centers Church sites and convents appurtenants like mosques and Islamic center appurtenants Communal burial ground and cemeteries Penal colonies and farms for inmates Government & private research and quarantine centers

COVERAGE *EXEMPTIONS & EXCLUSIONS


d. All lands with 18% slope and over

COVERAGE *EXEMPTIONS & EXCLUSIONS


2. Under Sec. 3 (c) of the act Defines agricultural lands as land devoted to agricultural activity as defined in this act and not classified as mineral, forest, residential, commercial or industrial land.

COVERAGE *EXEMPTIONS & EXCLUSIONS


DAR GUIDELINES
1. Disturbance Compensation a. In cash, kind, or combination to the farmers, agricultural lessees, share tenants, farm workers, actual tillers. Both parties must agree. b. The cash should not be less than five (5) times the average gross harvest on the subject landholding during the five (5) preceding calendar years.

COVERAGE *EXEMPTIONS & EXCLUSIONS


DAR GUIDELINES
c. The kind may contain housing, homelots, employment, benefits, or combination. DAR should approve the deal. d. When there is fixing, the regional director shall tell the adjudicator to resolve the problem e. Approving authority may grant conditional exemption order for non-payment as long as there is bond between the two parties

COVERAGE *EXEMPTIONS & EXCLUSIONS


DAR GUIDELINES
2. Approving authorities a. For properties less than five (5) hectares, the approving authority is the Regional Director acting upon RCLUPPI b. For properties of more than five (5) hectares, the approving authority is the Secretary acting upon CLUPPI-2

COVERAGE *EXEMPTIONS & EXCLUSIONS


DAR GUIDELINES
c. When the applicant owns two or more parcel of lands within the same barangay or within two barangays that are adjacent to each other, and the sum of the areas are exceeds five hectares, the approving authority is the Secretary acting upon CLUPPI-2

COVERAGE *EXEMPTIONS & EXCLUSIONS


DAR GUIDELINES
d. When the applicant challenges the jurisdiction of the approving authority, the approving authority shall hold the processing until determining correct judgement

COVERAGE *EXEMPTIONS & EXCLUSIONS


DAR GUIDELINES
3. Effect of Pre-existing CARP coverage If the filing of exemption clearance is for CARP, the filing should be under 60 days after receiving the notice for it to be processed

COVERAGE *EXEMPTIONS & EXCLUSIONS


DAR GUIDELINES
4. Protest a) Who may file Written protest must be within 30 days from posting of the requisite billboards, or within 15 days from conduct of ocular inspection, whichever is latter b) Where to file Office of the PARO, RCLUPPI or CLUPPI-2

COVERAGE *EXEMPTIONS & EXCLUSIONS


DAR GUIDELINES
5. Revocation of withdrawal of exemption clearance any person may file petition to revoke or withdraw, the Exemption Clearance, if there is serious violation of DAR rules. Should be within 90 days of discovery of fact but not more than 1 year from issuance of exemption clearance.

LAND ACQUISITION & REDISTRIBUTION

LAND ACQUISITION & REDISTRIBUTION

*COMPULSARY ACQUISITION

Land types 1. Agricultural Lands 2. Government Owned Lands 3. Settled Lands 4. Landed Estates 5. Rice and Corn Lands.

LAND ACQUISITION & REDISTRIBUTION

*COMPULSARY ACQUISITION

Compulsory acquisition of private lands Private agricultural lands of which covered under the Comprehensive Agrarian Reform Program (CARP). Notice of Coverage (NOC) Still the processes stalls because of the owner.

LAND ACQUISITION & REDISTRIBUTION

*QUALIFIED BENEFICIARIES

1. Landless residents of 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. Collective or cooperatives of the above beneficiaries g. Others directly working on the land

LAND ACQUISITION & REDISTRIBUTION

*QUALIFIED BENEFICIARIES

2. Children of landowners who are qualified 3. Actual tenant-tillers in the landholding

LAND ACQUISITION & REDISTRIBUTION

*QUALIFIED BENEFICIARIES

4. Beneficiaries under PD 27 who have culpably sold, disposed of, or abandoned their lands are disqualified. 5. Willingness, ability to cultivate and make the land as productive as possible. 6. Tenants, lessees or workers with lands not able to accommodate them.

LAND ACQUISITION & REDISTRIBUTION

*QUALIFIED BENEFICIARIES

7. Farmers already in place and those not accommodated in the distribution of privatelyowned lands. 8. No more than 3 hectares of land will be given

LAND ACQUISITION & REDISTRIBUTION

*PAYMENT OF BENEFICIARIES

1. Payment to LBP in 30 annual amortizations at 6% interest per annum subject to the ff. rules: a. Payment for the 1st 3 years after the award may be at reduced amount PARC b. 1st 5 annual payments may not be more than 5% of the value of the annual gross production DAR c. After the 5th year, LBP may reduce the interest rate or the principal obligation to make the repayment affordable

LAND ACQUISITION & REDISTRIBUTION

*PAYMENT OF BENEFICIARIES

2. LBP shall have Lien (prior right) by way of right on the land awarded to the beneficiary. it include non payment of 1st three annual amortizations DAR shall give the right to other qualified beneficiary

COMPENSATION

*DETERMINATION OF JUST COMPENSATION

1. In determining just compensation, the following shall be considered: a. the cost of acquisition of the land; b. the current value of like properties; c. nature of property; d. actual use and income; e. the sworn valuation of the owner; f. the tax declarations; and g. the assessment made by government assessors.

COMPENSATION

*DETERMINATION OF JUST COMPENSATION

2. The social and economic benefits as well as non-payment of taxes or loans secured from any government financing institution shall be considered in the determination of its valuation. 3. The LBP shall compensate the landowner in such amount as may agreed upon or as may finally determined by the court as the just compensation for the land.

COMPENSATION

*MODES OF COMPENSATION

Modes at the option of the landowner: 1. Cash payment, under the following terms and NOTE: All of these are conditions: effective so that the balance a. For lands above fifty (50) hectares, insofar as the is to be paid is concerned 25% cash. excess heritage in government b. For lands above twenty-four (24) hectares financial instruments and upnegotiable at any 30% cash. to fifty (50) hectares time. c. For lands twenty-four (24) hectares and below 35% cash.

COMPENSATION

*MODES OF COMPENSATION

2. 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; 3. Tax credits which can be used against any tax liability; and 4. LBP bonds.

COMPENSATION

*MODES OF COMPENSATION

FEATURES OF LBP BONDS


1. Market interest rates They are aligned with 91-day treasury bill rates.

COMPENSATION

*MODES OF COMPENSATION

FEATURES OF LBP BONDS


2. Transferability and negotiability Such LBP bonds may be used by the landowner, his successors-in-interest or his assigns, up to the amount of their face value for any of the following: a. Acquisition of land or other real properties of the government.

COMPENSATION

*MODES OF COMPENSATION

FEATURES OF LBP BONDS


b. Acquisition of shares of stocks of government owned or controlled corporations or even in private corporations. c. Substitution for surety or bail bonds for the provisional release of accused persons, or for performance bonds. d. Security for loans with any government financial institution.

COMPENSATION

*MODES OF COMPENSATION

FEATURES OF LBP BONDS


e. Payment for various taxes and fees to the government. f. Payment for tuition fees of the immediate family of the original bondholder in government universities, colleges, etc. g. Payment for fees of the immediate family of the original bondholder in government hospitals.

COMPENSATION

*MODES OF COMPENSATION

FEATURES OF LBP BONDS


h. Such other uses as the PARC may, from time to time, allow.

COMPENSATION
Interest payment

*MODES OF COMPENSATION

Rates The interest rate on the 10-year Land Bank is based on the 91-day treasury bills, representing the transactions consummated in the auction sale. Dates For bonds issued as a result of the conversion of 25-year bonds, the Land bank pays interest on February 18 and August 18 of every year.

COMPENSATION
1. Guidelines

*VOLUNTARY LAND TRANSFER

a. All notices for voluntary land transfer must be submitted to the DAR within the first year of the implementation of the CARP. b. The terms and conditions of such transfer shall not be less favorable to the transferee than those of the governments standing offer to purchase from the landowner and to resell to the beneficiaries.

COMPENSATION

*VOLUNTARY LAND TRANSFER

c. The voluntary agreement shall include sanctions for non- compliance by either party and shall be duly recorded and its implementation monitored by the DAR.

NOTE: To be valid, the transfer must have complied with all the three general guidelines.

COMPENSATION

*VOLUNTARY LAND TRANSFER

2. Payment of compensation by beneficiaries Direct payment in cash or in kind may be NOTE:the the event they cannot In farmer-beneficiary to the made by agree on the price of land, the landowner under terms to be mutually agreed upon byfor the compulsory be procedure both parties, which shall bindingacquisitionupon registration with upon them, shall apply. and approval by the DAR.

COMPENSATION

*VOLUNTARY LAND TRANSFER

Voluntary offer to sell The government shall purchase for redistribution under the CARP, all agricultural lands it deems productive suitable to farmer cultivation voluntarily offered for sale. Such transactions shall be exempted from the payment of capital gains tax and other taxes and fees.

COMPENSATION

*VOLUNTARY LAND TRANSFER

Voluntary offer to sell Corporate landowners may voluntarily transfer ownership over their agricultural landholdings to the government.

CORPORATE FARMS
RULES
Lands should be distributed directly to the individual worker-beneficiaries If not feasible and sound to divide the land, it shall be owned collectively by the workerbeneficiaries or association

CORPORATE FARMS
Home lots and farm lots
Members of the cooperatives shall be provided with home lots and small farm lots This should be taken from land owned by the cooperative

CORPORATE FARMS
Corporate Land Owners Voluntary transfer of ownership Land owners may voluntarily transfer ownership to qualified beneficiaries, or to the government Grant of right to qualified beneficiaries to purchase shares of stocks Corporations owning lands may give their qualified beneficiaries the right to purchase a proportion of the stock of the corporation

CORPORATE FARMS
Conditions with land distribution requirements Books of the corporation shall be subject to periodic audit by a CPA chosen by the beneficiaries Beneficiaries shall be assured of at least one representative in the board of directors. Shares of beneficiaries shall have the same rights and features like other shares. Transferred stocks shall be void ab initio unless the transaction is in favor of a qualified and registered beneficiary in the same corporation.

CORPORATE FARMS
Production-sharing plan with farm workers Amount of production share Agricultural lands are mandated to execute a production and profit-sharing plan with their cooperative, 3% of the gross annual sales from the production are distributed within 60days of the end of fiscal year

CORPORATE FARMS
Amount of profit share
If the individual realizes profit, additional 10% of net profit after tax shall be distributed to the farm workers within 90days of the end of fiscal year

Transitory period
At least 1% of gross sales of the entity shall be distributed to the managerial, supervisory and technical group in the during transitory period

CORPORATE FARMS
Employers covered by the mandated production and profit sharing under R.A. No. 6657 Agricultural lands Multinational corporations engaged in agricultural activities Commercial farms devoted to commercial livestock, aquaculture, and cacao, coffee and rubber plantation

CORPORATE FARMS
Employers covered All farm workers, excluding managerial and supervisory employees, are included in the mandated production-sharing and profitsharing Manner of payment Production/profit shares of the workers shall be paid in cash. Additional compensation shall be in separate payroll

CORPORATE FARMS
Payment of shares of cooperative The land owner and the LBP shall assist the farmer- and worker-beneficiaries in the payment of shares by providing credit financing.

CORPORATE FARMS
Valuation of lands Valuation scheme for the land shall be formulated by PARC In the determination of a just price, PARC shall consult closely with the land owner and the worker-beneficiaries In case of disagreement, the price PARC determined, if the worker-beneficiaries accepted it, shall be followed.

SUPPORT SERVICES

*FUNCTIONS OF S. SERVICES OFFICE

1. Irrigation facilities 2. Infrastructure development and public work projects 3. Government subsidies for use of irrigation facilities 4. Price support and guarantee for agricultural produce 5. Credit (collateral-free loans) 6. Financial assistance

SUPPORT SERVICES

*FUNCTIONS OF S. SERVICES OFFICE

7. Agricultural extension workers to farmers organizations 8. Research and dissemination of information on agrarian reform plants and crops 9. Development of cooperative management skills through intensive training 10. Assistance in identifying ready markets for agricultural produce 11. Administration, operation and management and funding of support services programs

SUPPORT SERVICES

*S.SERVICES TO 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 4. Infrastructure 5. Research, production and use of organic fertilizers

SUPPORT SERVICES

*S.SERVICES TO LAND OWNERS

1. Investment information, financial and counseling assistance 2. Facilities, programs and schemes for conversion or exchange of bonds issued for payment of lands 3. Marketing LBP bonds 4. Other services designed to utilized productively proceeds of sale of lands for rural industrialization

LIMITATIONS
SEC. 73. of Republic Act No. 6657, Prohibited Acts and Omissions. - The following are prohibited: a. The ownership or possession, for the purpose of circumventing the provisions of this Act, of agricultural lands in excess of the total retention limits or award ceilings by any person, natural or juridical, except those under collective ownership by farmerbeneficiaries.

LIMITATIONS
b. The forcible entry or illegal detainer by persons who are not qualified beneficiaries under this Act to avail themselves of the rights and benefits of the Agrarian Reform Program. c. Any conversion by , any landowner of his agricultural land into any non-agricultural use with intent to avoid the application of this Act to his landholdings and to dispossess his bonafide tenant farmers.

LIMITATIONS
d. The malicious and wilful prevention or obstruction by any person, association or entity of the implementation of the CARP. e. The sale, transfer, conveyance or change of the nature of lands outside of urban centers and city limits either in whole or in part after the effectivity of this Act, except after final completion of the appropriate conversion under Section 65 of Republic Act No. 6657, as amended.

LIMITATIONS
f. The sale, transfer or conveyance by a beneficiary of the right to use or any other usufructuary right over the land he/she acquired by virtue of being a beneficiary, in order to circumvent the provisions of this Act.

LIMITATIONS
g. The unjustified, wilful, and malicious act by a responsible officer or officers of the government through the following:

The denial of notice and/or reply to landowners. The deprivation of retention rights. The undue or inordinate delay in the preparation of claim folders Any undue delay, refusal or failure in the payment of just compensation

LIMITATIONS
h. The undue delay or unjustified failure of the DAR, the LBP, the PARC, the PARCCOM, and any concerned government agency or any government official or employee to submit the required report, data and/or other official document involving the implementation of the provisions of this Act.

LIMITATIONS
i. The undue delay in the compliance with the obligation to certify or attest and/or falsification of the certification or attestation as required under Section 7 of Republic Act No. 6657, as amended. j. Any other culpable neglect or wilful violations of the provisions of this Act.

LIMITATIONS
PENALTY Any person knowingly or willfully violates provisions of this Act shall be:
Punished by imprisonment of not less than one month to not more than 3 years of Fine of not less than 1,000 but not more than 15,000 If offender is corporation or association, officer responsible shall be criminally responsible.

END of SLIDE

THANK YOU!

Gomez, G., Hernandez, E., Lee, L., O,S., Palma, E., Rieza, E., Valen, J. and Yuson, J.