Republicofthe Philippines

DEPARTMENT of AGRARIAN REFORM .

ElliPTICALROAD, DIUMAN, QUEZ/?NCrIY TELS. 928-7031 TO39
ADMlNIS1RATIVEORDERNO. 0 L
Seriesof2014
SUBJECT: RULES AND REGULATIONS ON LEASEHOLD OPERATIONS
IN TENANTED COCONUT LANDS AFFECI'ED BY
FORTUITOUS EVENTS, NATURAL DISASTERS OR
CALAMmES.
In order to address and tn1tJgate the effect of fortuitous events or natural
disasters/calamities onlandholdings devoted to coconutproduction, and toattend to and
improve the economic condition of the agricultural lessees-tenants on coconut lands
devastatedbysuchfortuitouseventsornaturaldisasters/calamities,thefollowingguidelines
concerningthe review and adjustment oflease rentals in tenanted coconut lands affected
therebyareherebyprescribed:
I. COVERAGE
Theserulesandregulations shallapplytoalltenantedcoconutlandholdings,withor
without a leasehold agreement, which have been affected by fortuitous events ornatural
disasters/calamitiesas definedinparagraphIIhereof.
II.DEFINITIONOFTERMS
Fortuitous Event- refers not only to events that are unforeseeable, but also those
which are foreseeable but inevitable. It may either be an "act ofGod", or natural
occurrences such as floods ortyphoons, oran "actofman", such as riots, strikes, or
wars.
NaturalDisasterI Calamity- is amajoradverseeventresultingfromnaturalprocesses
ofthe earth. These include typhoons, floods, storm surges, earthquakes, volcanic
eruptions, landslides, droughts, andthe like, whichresultinloss oflife anddamage to
property,andtypicallyleaveeconomicdamagetotheaffectedpopulation.
Heavy"Damaged Coconut Trees - are those with broken branches and
twisted/brokenfronds,atleast fifty percent(50%) ofthe irrunature nuts of which have
fallen, Suchtreesmaytakeabouttwo (2) tothree(3) yearstorecoverproduction.
Totally-DamagedCoconutTrees-arethosetreeswhichare erownlessorhavefallen
down,orwherethefrondsareheavilyshakenand/orcrackedThesearetreeshavingno
chance of survival in which100%ofthe nut production will be peemanenrly lost.
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PrincipalCrop- is any product/cropraised from thedominant cultivation oruse of
theland,andharvestedonaregularbasis.
OtherCrops - refers to any product/crop raised otherthan the crop to which the
cultivation ofthe land is principally devoted in each agricultural year, andwhich shall
serve as a temporary crop while the principal or replanted coconuttrees are under a
gestationperiod.
III.POllCYSTATEMENTS
A. No tenant-lessee shall be ejected or dispossessed or removed from his/her
farmholdingduetothenon-paymentoflease rentals as aresultofafortuitousevent
ornaturalcalamity/disaster,exceptwhenhis/herdispossessionhas beenauthorized
byanappropriatebodyorcourtinajudgmentthai:is finalandexecutory.
B. Said tenant-lessee shall renegotiate a new leasehold agreement with the
landownerspecifyingthenewtermsand conditionsoftheirtenan<;yrelation
oragreements.particularlywith respecttothepaymentofthe lease rental,planting
ofcrops,andchangeofcrop,ifnecessaryanduponagreement.Thisdoesnotimply
thatthetenancyrelationshiphasbeenextinguishedbythefortuitousevent.
C. Theconsideration forthelease shall notbemorethanthe equivalentoftwentyfive
percent (25%) oftheaverage normal harvestduringthe three (3) agriculturalyears
immediately preceding the date the leasehold was established after deducting the
amountused fur seeds and the costofharvesting, threshing, loading, hauling and
processing,whicheverareapplicable. If thelandwas cultivatedforless thanthree(3)
years, the initial consideration shall be based on the average normal harvest ofthe
precedingyear/swhenthelandwas actuallycultivated,orontheharvestofthefirst
year in the case ofnewly cultivated lands, ifthatharvestis normal (Section 34, I"
proviso,R.A.No.3844).
Wherethe coconuttrees onthesubjectlandholdingareheavilyortotally-damaged
due to afortuitous eventornatural calamity/disasterresultingin a crop failure, the
tenant-lessee's securityoftenure shall be maintained despite thefailure to paylease
rentals. Duringthe periodwhen thelandholdingis beingrehabilitated, through the
re-plantingoftheprincipalcrop (coconuttrees) andwhile thesaid principalcropis
still in the gestation stage orwhere production has not yet attained its average
normalharvest,the tenant,lesseeshall beallowedtoplantothercropssubjectto the
precedingparagraph.Theothercropsplantedshall serveasthetemporarycrop.
D. Subject to Memorandum Circular No. OS, Series of2013 issued by the Philippine
Coconut Authority (PCA), the affected tenant-lessee shall be allowed to cut and
transportcoconuttrees, provided thatthe necessary pennitshall besecured from
the PeA,pursuantto R.A. No. 10593andits pertinent existingpolicies, rules, and
regulations.
E. The netproceeds ofthe cutcoconuttrees, afterdeductingthe costofcuttingand
hauling, which shall be reimbufryd to the partywho shoulders the said expenses,
i /
t /'
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shaJ.llikewisebedividedbetweenthetenant-lesseeandlandowner-lessorinamanner
agreed by them, provided thatin no case maytheshareofthetenant-lessee be less
than seventyfive percent(75%) ofthenetproceeds.Incaseofdisagreement, orif
the landowner-lessor can no longerbelocated, the 75%-25% ratio in favor ofthe
tenant-lessee shall be imposed. Ifthe landowner is present, the amount shall be
given to him/her. However, if the landowneris notpresentorrefuses to receive
his/her share, the Municipal Agrarian Refonn Program Officer (MARPO) shall
advise said landowner orhis/hersuccessorcin-interest in writingand by registered
mail. Furthermore,the twenty-five percent(25%) shareofthe landownerthatwas
notclaimed shall bedepositedunderhis/hernamein thenearestLandBankofthe
Philippines (LBP) branch in the locality, within thirty (30) days from the receipt
thereof.
IV. OPERATING PROCEDURES
The following shall be the duties and obligations of the Municipal .Agrarian Reform
ProgramOfficer(MARPO):
A. TheMARFO,attheinstanceofthetenant-lesseeorlandowner-lessor,shallvalidate
the information that the tenanted coconutlandholdings are affected by fortuitous
eventornaturalcalamity/disaster.TheMARFOshallthereuponissueaCertification
that acertain landholding is damaged by a fortuitous event or natural
calamity/disaster.
B. Upon validation, the MARPO shall immediately send an invitation letter to the
tenant-lesseeandlandowner-lessorforaconference,andundertakethefollowing:
1) Inform the parties that the security of tenure ofthe tenant-lessee shall be
maintaineddespitethefailuretopayleaserental.
2) A new leasehold agreement shall be formulated in accordance with the
formalities prescribed under existing laws and pertinent DAR rules and
regulations. Any agreement reached by the parties, which are not contrary to
law/morals,customs,publicpolicy,andpublicorder,shall berespected.
3) In case the parties fuil to reach anagreement,the J\1ARPO shall determine or
compute the leasehold rental in accordance with the pertinent rules and
regulations.Thereafter,theMARFOshallissuetheProvisionalLeaseholdRent:l1
(pLR), which must be followed by both parties. In case any ofthe parties
disagree with thePLR, thesame shall beforwarded to the Provincial Agrarian
Reform Adjudicator (pARAD) for the determination oflease rental. In the
meantime, the PLR shall be in due course observed by the parties until the
PARADshallhavefixed theleaserentals.
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IV. REPEAUNG CLAUSE.
All orders, circulars, rules, and regulations inconsistent herewith are hereby revoked,
amended, or modified accordingly.
V. EFFECTIVI1Y.
This A.O. shall take effect after ten (10) days after its publication in two (2)
newspapers of general circulation, pursuant to Section 49 of Republic Act (R.A.) No. 6657,
as' amended, and its registration with the Office of the National Administrative Register
(ONAR).
FEB 2 6
Diliman, Quezon City, 2014


Department of Agrarian Relorm

't/t'I-&>14
Published in the (2) Natuinal Newspaper
of general Circulations:
1. Malaya Business Insight
2. Business Mirror
Date of Publication - March 04, 2014
Republic of the Philippines
DEPARTMENTofAGRARIANREFORM
CERTIFICATION
This is to certify that Administrative Order No.2, Series of 2014 entitled
"RULES AND REGULAnONS' ON LEASEHOLD OPERAnONS IN
TENANTED COCONUT LANDS AFFECTED BY FORTIDTOUS EVENTS,
NATURAL DISASTERS OR CALAMITIES" was published today, Tuesday, 04
March 2014 at Malaya Business Insight and Business Mirror newspapers.
Issued this 4th day ofMarch 2014 for whatever purpose it may serve.
MA. FAUSTINO
R. MJ
Public Assistance and Media Relations Service
Elliptical Road, Diliman, Quezon City Tel. (632) 928-7031 to 39