1

THE COMPREHENSIVE AGRARIAN REFORM LAW

Republic Act No. 6657, as amended
Agrarian Reform means the redistribution of lands, regardless
of crops or fruits produced, to farmers and regular farmworkers
who are landless, irrespective of tenurial arrangement, to include
the totality of factors and support services designed to lift the
economic status of the benefciaries and all other arrangement
alternative to the physical redistribution of lands, such as production or proft-sharing, labor administration, and the distribution of
stock, which will allow benefciaries to receive a just share of the
fruits of the lands they work.
Land Reform is the physical redistribution of land such as the
program under Presidential Decree No. 27. Agrarian reform means
the redistribution of lands including the totality of factors and
support services designed to lift the economic status of the
benefciaries. Thus, agrarian reform is broader than land reform.
D. RA 6657 is Constitutional
In the case of Association of Small Landowners in the
Philippines, Inc. v. Secretary of Agrarian Reform,1 the Supreme Court held:
"The case before us presents no knotty complication insofar as the question of compensable taking is concerned. To
the extent that the measures under challenge merely
prescribe retention limits for landowners, there is an exercise
of the police power for the regulation of private property in
accordance with the Constitution. But where, to carry out
such regulation, it becomes necessary to deprive such
owners of whatever lands they may own in excess of the
maximum area allowed, there is defnitely a taking under the
power of eminent domain for which payment of just
compensation is imperative. The taking contemplated is not
a mere limitation of the use of the land. What is required is
the surrender of the title to and the physical possession of
the said excess and all benefcial rights accruing to the owner
1

175 SCRA 343.

in favor of the farmer-benefciary. This is defnitely an

exercise not of the police power but of the power of eminent
domain.
"Classifcation has been defned as the grouping of
persons or things similar to each other in certain particulars
and different from each other in these same particulars. To
be valid, it must conform to the following requirements: (1) it
must be based on substantial distinctions; (2) it must be
germane to the purpose of the law; (3) it must not be limited
to existing conditions only; and (4) it must apply equally to all
the members of the class. The Court fnds that all these
requisites have been met by the measures here challenged
as arbitrary and discriminatory.
"Equal protection simply means that all persons or things
similarly situated must be treated alike both as to the rights
conferred and the liabilities imposed. The petitioner have not
shown that they belong to a different class and entitled to a
different treatment. The argument that not only landowners
but also owners of other properties must be made to share
the burden of implementing land reform must be rejected.
There is a substantial distinction between these two classes
of owners that is clearly visible except to those who will not
see. There is no need to elaborate on this matter. In any
event, the Congress is allowed a wide leeway in providing for
a valid classifcation. Its decision is accorded recognition and
respect by the courts of justice except only where its discretion is abused to the detriment of the Bill of Rights.
"It is worth remarking at this juncture that a statute may
be sustained under the police power only if there is a
concurrence of the lawful subject and the lawful method. Put
otherwise, the interests of the public generally as distinguished from those of a particular class require the interference of the State and, no less important, the means
employed are reasonably necessary for the attainment of the
purpose sought to be achieved and not unduly oppressive

upon individuals. As the subject and purpose of agrarian

reform have been laid down by the Constitution itself, we
may say that the frst requirement has been satisfed. What
remains to be examined is the validity of the method
employed to achieve the Constitutional goal.
"Eminent domain is an inherent power of the State that
enable it to forcibly acquire private lands intended for public
use upon payment of just compensation to the owner.
Obviously, there is no need to expropriate where the owner is
willing to sell under terms also acceptable to the purchaser,
in which case an ordinary deed of sale may be agreed upon
by the parties. It is only where the owner is unwilling to sell,
or cannot accept the price or other conditions offered by the
vendee, that the power of eminent domain will come into
play to assert the paramount authority of the State over the
interest of the property owner. Private rights must then yield
to the irresistible demands of the public interest on the timehonored justifcation, as in the case of the police power, that
the welfare of the people is the supreme law.
"But for all its primacy and urgency, the power of expropriation is by no means absolute (as indeed no power is
absolute). The limitation is found in the constitutional injunction that "private property shall not be taken for public use
without just compensation" and in the abundant
jurisprudence that has evolved from the interpretation of this
principle. Basically, the requirements for a proper exercise of
the power are: (1) public use and (2) just compensation.
"[T]he determination of just compensation is a function
addressed to the courts of justice and may not be usurped by
any other branch or official of the government. EPZA v.
Dulay resolved a challenge to several decrees promulgated
by President Marcos providing that the just compensation for
property under expropriation should be either the
assessment of the property by the government or the sworn
valuation thereof by the owner, whichever was lower.

"With these assumptions, the Court hereby declares that

the content and manner of the just compensation provided
for in the afore-quoted Section 18 of the CARP Law is not
violative of the Constitution. We do not mind admitting that
a certain degree of pragmatism has influenced our decision
on this issue, but after all this Court is not a cloistered
institution removed from the realities and demands of society
or oblivious to the need for its enhancement. The Court is as
acutely anxious as the rest of our people to see the goal of
agrarian reform achieved at last after the frustrations and
deprivations of our peasant masses during all these disappointing decades. We are aware that invalidation of said
section will result in the nullifcation of the entire program,
killing the farmer's hopes even as they approach realization
and resurrecting the specter of discontent and dissent in the
restless countryside. That is not in our view the intention of
the Constitution, and that is not what we shall decree today.
"Accepting the theory that payment of the just compensation is not always required to be made fully in money, we fnd
further that the proportion of cash payment to the other
things of value constituting the total payment, as determined
on the basis of the areas of the lands expropriated, is not
unduly oppressive upon the landowner. It is noted that the
smaller the land, the bigger the payment in money, primarily
because the small landowner will be needing it more than
the big landowner, who can afford a bigger balance in bonds
and other things of value.
No less importantly, the
government fnancial instruments making up the balance of
the payment are "negotiable at any time." The other modes,
which are likewise available to the landowner at his option,
are also not unreasonable because payment is made in
shares of stock, LBP bonds, other properties or assets, tax
credits, and other things of value equivalent to the amount of
just compensation."

II. Scope
A. Lands Covered
1. The Comprehensive Agrarian Reform Law of 1988 shall cover,
regardless of tenurial arrangement and commodity produced, ALL
PUBLIC AND PRIVATE AGRICULTURAL LANDS as provided in
Proclamation No. 131 and Executive Order No. 229, including other
lands of the public domain suitable for agriculture: Provided, That
landholdings of landowners with a total area of fve (5) hectares
and below shall not be covered for acquisition and distribution to
qualifed benefciaries. [Section 4]
a. Agricultural land refers to land devoted to agricultural activity
and not classifed as mineral, forest, residential, commercial or
industrial land [Section 3(c)].
b. Agricultural activity means the cultivation of the soil,
planting of crops, growing of fruit trees, raising of fsh, including
the harvesting of such farm products, and other farm activities
and practices performed by a farmer in conjunction with such
farming operations done by persons whether natural or juridical
[Section 3(b)].
2. Specifically, the following lands are covered by the
Comprehensive Agrarian Reform Program:
a. All alienable and disposable lands of the public domain devoted
to or suitable for agriculture. No reclassifcation of forest or
mineral lands to agricultural lands shall be undertaken after the
approval of this Act until Congress, taking into account ecological,
developmental and equity considerations, shall have determined
by law, the specifc limits of the public domain;
b. All lands of the public domain in excess of the specifc limits as
determined by Congress in the preceding paragraph;
c. All other lands owned by the Government devoted to or suitable
for agriculture; and
d. All private lands devoted to or suitable for agriculture
regardless of the agricultural products raised or that can be raised
thereon.
B. Exclusions from the Coverage of CARL

1. Under Section 102, excluded from the coverage of the CARL are
lands actually, directly and exclusively used for:
a. Parks;
b. Wildlife;
c. Forest reserves;
d. Reforestation;
e. Fish sanctuaries and breeding grounds;
f. Watersheds and mangroves.
2. Private lands actually, directly and exclusively used for
prawn farms and fshponds shall be exempt from the
coverage of this Act: 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.
In cases where the fshponds or prawn farms have been
subjected to the Comprehensive Agrarian Reform Law, by
voluntary offer to sell, or commercial farms deferment or
notices of compulsory acquisition, a simple and absolute
majority of the actual regular workers or tenants must
consent to the exemption within one (1) year from the
effectivity of this Act. When the workers or tenants do not
agree to this exemption, the fshponds or prawn farms
shall be distributed collectively to the worker-benefciaries
or tenants who shall form a cooperative or association to
manage the same.
3. Likewise, execluded from the coverage the CARL are lands
actually, directly and exclusively used and found to be
necessary for:
a. National defense;
b. School sites and campuses including experimental farm
stations operated by public or private schools for
educational purposes;
c. Seeds and seedling research and pilot production
2

As amended by Republic Act No. 7881.

d.
e.
f.
g.
h.

center;
Church sites and convents appurtenant thereto;
Mosque sites and Islamic centers appurtenant thereto;
Communal burial grounds and cemeteries;
Penal colonies and penal farms actually worked by the
inmates; and
Government and private research and quarantine centers.

4. All lands with eighteen percent (18%) slope and over

which are not developed for agriculture are exempted from
the coverage of CARL.
* An eighteen percent slope is not equivalent to an eighteen degree angle. Eighteen percent slope is obtained
by having a 100 meter run and an 18 meter rise.
5. In the case of Luz Farms v. Secretary of Agrarian Reform,3
the Supreme Court has excluded agricultural Lands
Devoted to Commercial Livestock, Poultry and Swine
Raising from the coverage of CARL.
The Supreme Court said:
"The transcripts of the deliberations of the Constitutional Commission of 1986 on the meaning of the word "agricultural," clearly show that it was never the intention of
the framers of the Constitution to include livestock and
poultry industry in the coverage of the constitutionallymandated agrarian reform program of the Government.
"The Committee adopted the defnition of "agricultural
land" as defned under Section 166 of RA 3844, as lands
devoted to any growth, including but not limited to crop
lands, saltbeds, fshponds, idle and abandoned land
(Record, CONCOM, August 7, 1986, Vol. III, p. 11).
3

192 SCRA 51.

"The intention of the Committee is to limit the application of the word "agriculture." Commissioner Jamir proposed to insert the word "ARABLE" to distinguish this kind
of agricultural land from such lands as commercial and
industrial lands and residential properties because all of
them fall under the general classifcation of the word "agricultural." This proposal, however, was not considered
because the Committee contemplated that agricultural
lands are limited to arable and suitable agricultural lands
and therefore, do not include commercial, industrial and
residential lands (Record, CONCOM, August 7, 1986, Vol.
III, p. 30).
"In the interpellation, then Commissioner Regalado (now
a Supreme Court Justice), posed several questions, among
others, quoted as follows:
xxx xxx xxx
"Line 19 refers to genuine reform program founded on
the primary right of farmers and farmworkers. I wonder
if it means that leasehold tenancy is thereby proscribed
under this provision because it speaks of the primary
right of farmers and farmworkers to own directly or
collectively the lands they till. As also mentioned by
Commissioner Tadeo, farmworkers include those who
work in piggeries and poultry projects.
I was wondering whether I am wrong in my appreciation that if somebody puts up a piggery or a poultry
project and for that purpose hires farmworkers therein,
these farmworkers will automatically have the right to
own eventually, directly or ultimately or collectively, the
land on which the piggeries and poultry projects were
constructed. (Record, CONCOM, August 2, 1986, p.
618).
xxx xxx xxx"
"The question were answered and explained in the

statement of the then Commissioner Tadeo, quoted as

follows:
xxx xxx xxx
"Sa pangalawang katanungan ng Ginoo ay medyo
hindi kami nagkaunawaan. Ipinaaalam ko kay Commissioner Regalado na hindi namin inilagay ang agricultural
worker sa kadahilanang kasama rito ang piggery, poultry at livestock workers. Ang inilagay namin dito ay
farm worker kaya hindi kasama ang piggery, poultry at
livestock workers (Record, CONCOM, August , 1986, Vol.
II, p. 621).
"It is evident from the foregoing discussion that Section
11 of RA 6657 which includes "private agricultural lands
devoted to commercial livestock, poultry and swine
raising" in the defnition of "commercial farms" is invalid,
to the extent that the aforecited agro-industrial activities
are made to be covered by the agrarian reform program of
the State. There is simply no reason to include livestock
and poultry lands int he coverage of agrarian reform.
(Rollo, p. 21).
"PREMISES CONSIDERED, the instant petition is hereby
GRANTED. Sections 3(b), 11, 13 and 32 of R.A. No. 6657
insofar as the inclusion of raising of livestock, poultry and
swine in its coverage as well as the Implementing Rules
and Guidelines promulgated in accordance therewith, are
hereby DECLARED null and void for being unconstitutional
and the writ of preliminary injunction issued is hereby
MADE permanent."
III.Schedule of Implementation

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A. Period for Implementation [Section 5]

1. The DAR, in coordination with the Presidential Agrarian
Reform Council (PARC) shall plan and program the fnal
acquisition and distribution of all remaining unacquired
and undistributed agricultural lands from the effectivity of
this Act until June 30, 2014.
B. Priorities [Section 7]
1. Guiding Principle: In effecting the transfer, priority must
be given to lands that are tenanted.
2. Factors to consider in the Implementation
a. Need to distribute lands to the tillers at the earliest
practical time;
b. Need to enhance agricultural productivity; and
c. Availability of funds and resources to implement and
support the program
3. Phases of Implementation
Phase One: During the fve (5)-year extension period
hereafter all remaining lands above ffty (50) hectares shall
be covered for purposes of agrarian reform upon the
effectivity of this Act. All private agricultural lands of
landowners with aggregate landholdings in excess of ffty
(50) hectares which have already been subjected to a notice
of coverage issued on or before December 10, 2008; rice and
corn lands under Presidential Decree No. 27; all idle or
abandoned lands; all private lands voluntarily offered by the
owners for agrarian reform: Provided, That with respect to
voluntary land transfer, only those submitted by June 30,
2009 shall be allowed: Provided, further, That after June 30,

11

2009, the modes of acquisition shall be limited to voluntary

offer to sell and compulsory acquisition: Provided,
furthermore, That all previously acquired lands wherein
valuation is subject to challenge by landowners shall be
completed and fnally resolved pursuant to Section 17 of
Republic Act No. 6657, as amended: Provided, fnally, as
mandated by the Constitution, Republic Act No. 6657, as
amended, and Republic Act No. 3844,as amended, only
farmers (tenants or lessees) and regular farmworkers
actually tilling the lands, as certifed under oath by the
Barangay Agrarian Reform Council (BARC) and attested
under oath by the landowners, are the qualifed benefciaries.
The intended benefciary shall state under oath before the
judge of the city or municipal court that he/she is willing to
work on the land to make it productive and to assume the
obligation of paying the amortization for the compensation of
the land and the land taxes thereon; all lands foreclosed by
government fnancial institutions; all lands acquired by the
Presidential Commission on Good Government (PCGG); and
all other lands owned by the government devoted to or
suitable for agriculture, which shall be acquired and
distributed immediately upon the effectivity of this Act, with
the implementation to be completed by June 30, 2012.
Phase Two: (a) Lands twenty-four (24) hectares up to ffty
(50) hectares shall likewise be covered for purposes of
agrarian reform upon the effectivity of this Act. All alienable
and disposable public agricultural lands; all arable public
agricultural lands under agro-forest, pasture and agricultural
leases already cultivated and planted to crops in accordance
with Section 6, Article XIII of the Constitution; all public
agricultural lands which are to be opened for new
development and resettlement: and all private agricultural
lands of landowners with aggregate landholdings above
twenty-four (24) hectares up to ffty (50) hectares which have
already been subjected to a notice of coverage issued on or
before December 1O, 2008, to implement principally the
rights of farmers and regular farmworkers, who are landless,
to own directly or collectively the lands they till, which shall

12

be distributed immediately upon the effectivity of this Act,

with the implementation to be completed by June 30, 2012;
and
(b) All remaining private agricultural lands of landowners
with aggregate landholdings in excess of twenty-four (24)
hectares, regardless as to whether these have been
subjected to notices of coverage or not, with the
implementation to begin on July 1, 2012 and to be completed
by June 30, 2013
Phase Three: All other private agricultural lands
commencing with large landholdings and proceeding to
medium and small landholdings under the following
schedule:
(a) Lands of landowners with aggregate landholdings above
ten (10) hectares up to twenty- four (24)hectares, insofar
as the excess hectarage above ten (10) hectares is
concerned, to begin on July 1,2012 and to be completed by
June 30, 2013; and
(b) Lands of landowners with aggregate landholdings from
the retention limit up to ten (10) hectares, to begin on July
1, 2013 and to be completed by June 30, 2014; to
implement principally the right of farmers and regular
farmworkers who are landless, to own directly or
collectively the lands they till.
The schedule of acquisition and redistribution of all
agricultural lands covered by this program shall be made in
accordance with the above order of priority, which shall be
provided in the implementing rules to be prepared by the
PARC, taking into consideration the following: the
landholdings wherein the farmers are organized and
understand ,the meaning and obligations of farmland
ownership; the distribution of lands to the tillers at the

13

earliest practicable time; the enhancement of agricultural

productivity; and the availability of funds and resources to
implement and support the program: Provided, That the PARC
shall design and conduct seminars, symposia, information
campaigns, and other similar programs for farmers who are
not organized or not covered by any landholdings.
Completion by these farmers of the aforementioned
seminars, symposia, and other similar programs shall be
encouraged in the implementation of this Act particularly the
provisions of this Section.

The PARC shall establish guidelines to implement the

above priorities and distribution scheme, including the
determination of who are qualifed benefciaries: Provided,
That an owner-tiller may be a benefciary of the land he/she
does not own but is actually cultivating to the extent of the
difference between the area of the land he/she owns and the
award ceiling of three (3) hectares: Provided, further, That
collective ownership by the farmer benefciaries shall be
subject to Section 25 of Republic Act No. 6657, as amended:
Provided, furthermore, That rural women shall be given the
opportunity t o participate in the development planning and
implementation of this Act: Provided, fnally, That in no case
should the agrarian reform benefciaries' sex, economic,
religious, social, cultural and political attributes adversely
affect the distribution of lands.
C. Exceptions from the Implementation Phases
1. Land acquisition and distribution shall be completed by June 30, 2014 on a
province-by- province basis. In any case, the PARC or the PARC Executive
Committee (PARC EXCOM), upon recommendation by the Provincial Agrarian
Reform Coordinating Committee (PARCCOM), may declare certain provinces as
priority land reform areas, in which case the acquisition and distribution of
private agricultural lands therein under advanced phases may be implemented

14

ahead of the above schedules on the condition that prior phases in these
provinces have been completed: Provided, That notwithstanding the above
schedules, phase three (b) shall not be implemented in a particular province
until at least ninety percent (90%) of the provincial balance of that particular
province as of January 1, 2009 under Phase One, Phase Two (a), Phase Two
(b),,and Phase Three (a), excluding lands under the jurisdiction of the
Department of Environment and Natural Resources (DENR), have been
successfully completed. PARC, upon recommendation of the Provincial Agrarian
Reform Coordinating Committee (PARCCOM), may declare certain provinces or
regions as priority land reform areas, in which case the acquisition and
distribution of private agricultural lands therein may be implemented ahead of
schedule. [Section 7]
2. The PARC may suspend the implementation of CARL with respect to
ancestral lands for purpose of identifying and delineating such lands.
[Section 9]
IV. Improvement of Tenurial and Labor Relations
A.Leasehold Tenancy
1. Tenancy in General
a. Defnition: Agricultural tenancy is the physical possession by a person
of land devoted to agriculture, belonging to or legally possessed by
another for the purpose of production through the labor of the former
and of the members of his immediate farm household in consideration
of which the former agrees to share the harvest with the latter or to pay
a price certain or ascertainable, either in produce or in money, or in
both [Section 3 of RA 1199, Guerrero v. CA4]
b. Types of Tenancy Relation
i. Sharehold Tenancy; and
ii. Leasehold Tenancy
2. Leasehold vs. Sharehold Tenancy
4

142 SCRA 136.

15

* The two tenancy systems are distinct and different form

each other. In sharehold, the tenant may choose to
shoulder, in addition to labor, any one or more of the
items of contributions (such as farm implements, work
animals, fnal harrowing, transplanting), while in
leasehold, the tenant or lessee always shoulders all
items of production except the land. Under the sharehold system, the tenant and the landholder are comanagers, whereas in leasehold, the tenant is the sole
manager of the farmholding.
Finally, in sharehold
tenancy, the tenant and the landholder divide the
harvest in proportion to their contributions, while in
leasehold tenancy, the tenant or lessee gets the whole
produce with the mere obligation to pay a fxed rental.
[People v. Adillo5]
Sharehold

Leasehold

Expenses of
Production

Tenant and
Landowner

Tenant

Management

Tenant and
Landowner

Tenant

Payment

Tenant and
landowner divide
the harvest in
proportion to their
contributions.

Tenant gets the

whole produce
with the mere
obligation to pay
rent.

3. Leasehold vs. Civil Lease

* There are important differences between a leasehold
tenancy and a civil law lease. The subject matter of
leasehold tenancy is limited to agricultural lands; that of
civil law lease may be either rural or urban property. As to
attention and cultivation, the law requires the leasehold
5

68 SCRA 90.

16

tenant to personally attend to, and cultivate the

agricultural land, whereas the civil law lessee need not
personally cultivate or work the thing leased. As to
purpose, the landholding in leasehold tenancy is devoted
to agriculture, whereas in civil law lease, the purpose may
be for any other lawful pursuit. As to the law that governs,
the civil law lease is governed by the Civil Code, whereas
leasehold tenancy is governed by special laws. [Gabriel v.
Pangilinan6]
Leasehold
Tenancy

Civil Law Lease

Subject Matter

Agricultural lands
only

Both rural and

urban properties

Attention and
Cultivation

Tenant must
personally cultivate

Lessee does not

have to personally
cultivate

Purpose

Agriculture only

Any lawful
purpose

Governing Law

Special laws

Civil Code

4. Purpose of the Leasehold Relation: To protect and improve

the tenurial and economic status of the farmers in
tenanted lands. [Section 12]
5. Application [Section 12]
a. Tenanted lands under the retention limit; and
b. Tenanted lands not yet acquired under the CARL
B. Production Sharing Plan

58 SCRA 590.

17

1. Application [Section 13]

a. Any enterprise adopting the scheme provided for in
Section 32;
b. Any enterprise operating under a production venture,
lease, management contract or other similar arrangement;
c. Any farm covered by Section 8 (Private agricultural
lands leased by Multinational corporations) and Section
11 (Commercial farming); and
d. Corporate farms pending fnal land transfer.
2. Period for Compliance:
effectivity of CARL

Within ninety (90) days from

3. Scheme (Applies to those individuals or enterprises realizing gross sales in excess of five million pesos per
annum, unless the DAR sets a lower ceiling) [Section 32]
a. Three percent (3%) of the gross sales from the production of such lands;
b. Distributed within sixty (60) days of the end of the fscal
year;
c. Treated as additional compensation to regular and other
farmworkers of such lands;
d. During the transitory period (before the land is turned
over to the farmworker-benefciaries), at least one
percent (1%) of the gross sales shall be distributed to
the managerial, supervisory and technical group; and
e. If proft is realized, an additional ten percent (10%) of
the net proft after tax shall be distributed to the regular
and other farmworkers within ninety (90) days of the
end of the fscal year.
V. Registration

18

A. Within 180 days from the effectivity of CARL, landowners,

natural or juridical, shall fle a sworn statement in the
assessor's office the following information:
a. the description and area of the property;
b. the average gross income from the property for at least 3
years;
c. the names of all tenants and farmworkers therein;
d. the crops planted in the property and the area covered by
the crop as of June 1, 1987;
e. the terms of mortgages, leases and management contracts subsisting as of June 1, 1987; and
f. the latest declared market value of the land as determined
by the city or provincial assessor. (Section 14)
B. The DAR, in coordination with the Barangay Agrarian Reform
Committee (BARC) shall register all agricultural lessees,
tenants and farmworkers who are qualifes to be benefciaries
under the CARL. These potential benefciaries shall provide
the following data:
a. names and members of their immediate farm household;
b. owners and administrators of the lands they work on and
the length of tenurial relationship;
c. location and area of the land they work;
d. crops planted; and
e. their share in the harvest or amount of rental paid or
wages received.
VI.

Private Land Acquisition

A. Retention Limit [Section 6]

1. Five hectares is the retention limit. No person may
own or retain, directly or indirectly, any public or private

19

agricultural land, the size of which shall vary according to

factors governing a viable family-sized farm, such as commodity produced, terrain, infrastructure, and soil fertility
as determined by the Presidential Agrarian Reform Council
(PARC), but in no case shall the retention limit exceed fve
(5) hectares.
2. Additional three hectares may be awarded to each
child, subject to the following qualifcations:
a. That the child is at least ffteen (15) years of age; and
b. That the child is actually tilling the land or directly
managing the farm.
3. Exceptions to the retention limit of five hectares.
a. Landowners whose lands have been covered by PD 27;
and
b. Original homestead grantees or direct compulsory heirs
who still own the original homestead at the time of the
approval of CARL, as long as they continue to cultivate
said homestead.
C. Provincial, city and municipal government ,units
acquiring private agricultural lands by expropriation or
other modes of acquisition to be used for actual, direct
and exclusive public purposes, such as roads and
bridges, public markets, school sites, resettlement sites,
local government facilities, public parks and barangay
plazas or squares, consistent with the approved local
comprehensive land use plan, shall not be subject to the
fve (5)-hectare retention limit under this Section and
Sections 70 and 73(a) of Republic Act No. 6657, as
amended: Provided, That lands subject to CARP shall
frst undergo the land acquisition and distribution
process of the program: Provided, further, That when
these lands have been subjected to expropriation, the
agrarian reform benefciaries therein shall be paid just
compensation [Section 6-A].

20

4. Right to choose the area to be retained.

The right to choose the area to be retained, which shall
be compact or contiguous, shall pertain to the landowner.
If the land retained is tenanted, the tenant shall have the
option to choose whether to remain therein or be a benefciary in the same or another agricultural land. In case the
tenant chooses to remain in the retained area, he shall be
considered a leaseholder and shall lose his right to be a
benefciary under this Act. In case the tenant chooses to
be a benefciary in another agricultural land, he loses his
right as a leaseholder to the land retained by the landowner. The tenant must exercise this option within a period of
one (1) year from the time the landowner manifest his
choice of the area for retention.

B. Procedure
1. Voluntary Land Transfer (VLT) [Section 20]
a. Must be submitted to the DAR within one year from
effectivity of the CARl;
b. Must not be less favorable to the transferee than those
of the government's standing ; and
c. Shall include sanctions for non-compliance by either
party and shall be duly recorded and its implementation
monitored by the DAR.
D. Only those submitted by June 30, 2009 shall be allowed.
2. Compulsory Acquisition [Section 16]
a. Notice to acquire the land shall be sent to the landowner and the benefciaries. The notice shall also be
posted in a conspicuous place in the municipal building
and the barangay hall of the place where the property is

21

b.
c.

d.

e.
f.
g.

located.
Within thirty (30) days from receipt of the written notice,
the landowner shall inform the DAR of his acceptance or
rejection of the offer.
If the offer is accepted, the LBP pays the landowner and
within thirty (30) days, the landowner executes and
delivers a deed of transfer to the Government and
surrenders the Certifcate of Title and other muniments
of title.
In case of rejection or failure to reply, the DAR shall
conduct summary administrative proceedings to
determine the compensation. If he does concur with
the compensation determined by the DAR, he can the
matter to the Courts.
Payment of the just compensation as determined by the
DAR or the Court.
Registration with the Register of Deeds for the issuance
of Transfer Certifcate of Title in the name of the
Republic of the Philippines.
Standing Crops: The landowner shall retain his share
of any standing crops unharvested at the time the DAR
shall take possession of the land and shall be given
reasonable time to harvest the same (Section 28).

C. Compensation
1. Determination of Just Compensation.
In determining just compensation, the cost of
acquisition of the land, the value of the standing crop, the
current: value of like properties, its nature, actual use and
income, the sworn valuation by the owner, the tax
declarations, the assessment made by government
assessors, and seventy percent (70%) of the zonal
valuation of the Bureau of Internal Revenue (BIR),
translated into a basic formula by the DAR shall be
considered, subject to the fnal decision of the proper

22

court. The social and economic benefts contributed by the

farmers and the farmworkers and by the Government t o
the property as well as the nonpayment of taxes or loans
secured from any government fnancing institution on the
said land shall be considered as additional factors to
determine its valuation [Section 17].
2. Under EO 405 (1990), Land Bank of the Philippines shall be
primarily responsible for the determination of the land
valuation and compensation.
3. Mode of Payment [Section 18]
a. Cash under the following scheme:
i. For lands above 50 hectares
: 25%
ii. For lands above 24 and up to 50
: 30%
iii. For lands 24 and below
: 35%
* In case of VOS, the landowner shall be entitled to an
additional 5% cash payment. [Section 19]
b. Balance in any of the following:
i. Shares of stock in government-owned or controlled
corporations, LBP preferred shares, physical assets or
other qualifed investments;
ii. Tax credits which can be used against any tax liability;
iii. Land Bank of the Philippines Bonds which shall have
the following features:
* Market interest rates aligned with 91-day treasury
bill rates;
* Ten percent (10%) of the face value of the bonds
shall mature every year from the date of issuance
until the tenth year; and
* Transferability and negotiability

23

c. Set-off
* All arrearages in real property taxes, without penalty
or
interest,
shall
be
deductible
from the
compensation to which the owner is entitled. [Section
66]
D. Exemptions from Taxes and Fees
1. Transactions under CARL involving a transfer of ownership,
whether from natural or juridical persons, shall be
exempted from taxes arising from capital gains. These
transactions shall also be exempted from the payment of
registration fees, and all other taxes and fees for the
conveyance or transfer thereof; Provided, That all arrearages in real property taxes, without penalty or interest,
shall be deducted from the compensation to which the
owner may be entitled. [Section 66]
2. All Registers of Deeds are hereby directed to register, free
from payment of all fees and other charges, patents, titles
and documents required for the implementation of CARP.
[Section 67]
VII. Land Redistribution
A. Beneficiaries [Section 22]
Benefciaries, in their order of priority, are:
1. Agricultural lessees and share tenants;
2. Regular Farmworkers: a natural person who is employed
on a permanent basis by an agricultural enterprise or farm
[Section 3(h)];

24

a. Farmer refers to a natural person whose primary

livelihood is cultivation of land or the production of
agricultural crops, livestock and/or fsheries either by
himself/herself, or primarily with the assistance of
his/her immediate farm household, whether the land is
owned by him/her, or by another person under a
leasehold or share tenancy agreement or arrangement
with the owner thereof [Section 3(f)].
b. Farmworker is a natural person who renders service for
value as an employee or laborer in an agricultural
enterprise or farm regardless of whether his compensation is paid on a daily, weekly, monthly or "pakyaw"
basis. It includes an individual whose work has ceased
as a consequence of, or in connection with, a pending
agrarian dispute and who has not obtained a
substantially equivalent and regular farm employment
[Section 3(g)].
3. Seasonal farmworkers: a natural person who is employed
on a recurrent, periodic or intermittent basis by an
agricultural enterprise or farm, whether as a permanent or
an non-permanent laborer, such as "dumaan", "sacada",
and the like [Section 3(i)];
4. Other farmworkers: a farmworker who is not a regular nor
a seasonal farmworker [Section 3(j)];
5. Actual tillers or occupants of public lands;
6. Collective or cooperatives of the above benefciaries; and
* Cooperatives shall refer to organizations composed
primarily of small agricultural producers, farmers,
farmworkers, or other agrarian reform benefciaries who
voluntarily organize themselves for the purpose of
pooling land, human, technological, fnancial or other
economic resources, and operated on the principle of

25

one member, one vote. A juridical person may be a

member of a cooperative, with the same rights and
duties as a natural person [Section 3(k)].
7. Others directly working on the land.
Before any award is given to a farmer, the qualifed
children of the landowner must receive their three hectare
award.
Rural women refer to women who are engaged directly or
indirectly in farming and/or fshing as their source of
livelihood, whether paid or unpaid, regular or seasonal, or in
food preparation, managing the household, caring for the
children, and other similar activities [Section 3(l)].
B. Disqualifications of Beneficiaries [Section 22]
1. Benefciaries under Presidential Decree No. 27 who have
culpably sold, disposed of, or abandoned their land;
2. Benefciaries guilty of negligence or misuse of the land or
any support extended to them;
* The mere fact that the expected quantity of harvest, as
visualized and calculated by agricultural experts, is not
actually realized, or that the harvest did not increase, is
not a sufficient basis for concluding that the tenants
failed to follow proven farm practices. [Belmi v. CAR7]
3. Benefciaries with at least three (3) hectares of agricultural
land; and
* Under the CARL, a benefciary is landless if he owns less
than three (3) hectares of agricultural land. [Section 25]
7

7 SCRA 812.

26

4. Benefciaries whose land have been the subject of foreclosure by the Land Bank of the Philippines. [Section 26]
* Under the CARL, the LBP may foreclose on the mortgage
for non-payment of the benefciary of an aggregate of
three (3) annual amortizations. [Section 26]
C. Awards
1. Emancipation Patents (EPs) are issued for lands covered
under Operation Land Transfer (OLT) of Presidential Decree
No. 27.
2. Certificates of Land Ownership Award (CLOAs) are
issued for private agricultural lands and resettlement
areas covered under Republic Act No. 6657, otherwise
known as the Comprehensive Agrarian Reform Law of
1988.
3. Free Patents are issued for public agricultural lands.
* Under Section 15 of EO 229 (1987), all alienable and
disposable lands of the public domain suitable for
agriculture and outside proclaimed settlements shall be
redistributed by the Department of Environment and
Natural Resources (DENR).
4. Certificates of Stewardship Contracts are issued for
forest areas under the Integrated Social Forestry Program.
D. Manner of Payment [Section 26]
1. Lands awarded shall be paid by the benefciaries to the
LBP in thirty (30) annual amortizations at six percent (6%)
interest per annum. The payments for the frst three (3)
years after the awards may be at reduced amounts as
established by the PARC: Provided, That the frst fve (5)

27

annual payments may not be more than fve percent (5%)

of the value of the annual gross production as established
by the DAR. Should the scheduled annual payments after
the ffth year exceed ten percent (10%) of the annual gross
production and the failure to produce accordingly is not
due to the benefciary's fault, the LBP may reduce the
interest rate or reduce the principal obligation to make the
repayment affordable.
2. Payment shall be:
a. Thirty (30) annual amortizations (First 3 years may be at
reduced amounts);
b. Six percent (6%) interest per annum; and
c. First fve (5) annual payments may not be more than
fve percent (5%) of the value of the annual gross
production.

E. Ownership Limitations on the Awarded Lands

1. Transferability of Awarded Lands. - Lands acquired by
benefciaries may not be sold, transferred or conveyed
except through hereditary succession, or to the
government, or to the Land Bank of the Philippines, or to
other qualifed benefciaries for a period of ten (10) years.
[Section 27]
* If the land is sold to the government or to the LBP, the
children or the spouse of the transferee shall have a
right to repurchase within a period of two (2) years.
2. Conversions of Lands. - An application for conversion
may be entertained only after the lapse of fve (5) years
from the 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

28

economic value for residential, commercial or industrial

purpose. [Section 66]
VIII. Corporate Farms
A. Definition
* Corporate farms are farms which are owned or operated
by corporations or other business associations. [Section
29]
B. Distribution
1. Land Transfer (Voluntarily Offer to Sell or Compulsory
Acquisition)
a. General rule: Lands shall be distributed directly to the
individual farmworker-benefciaries.
b. Exception: However, if it is not economically feasible
and sound to divide the land, then it shall be owned
collectively by the farmworker-benefciaries through a
workers' cooperative or association. [Section 29]
c. In case the land is transferred to a cooperative or
association, the individual members of the cooperatives
shall be provided with homelots and small farmlots for
their family use, to be taken from the land owned by the
cooperative. [Section 30]
2. Capital Stock Transfer [Section 31]
a. This is a non-land transfer. Corporations or associations
which voluntarily divest a proportion of their capital
stock, equity or participation in favor of their workers or
other qualifed benefciaries shall be deemed to have
complied with CARL.
b. Amount to be divested: Corporations owning agricultural lands may give their qualifed benefciaries the

29

right to repurchase such proportion of the capital stock

of the corporation that the agricultural land, actually
devoted to agricultural activities, bears in relation to the
company's total assets.
* Agricultural activity means the cultivation of the soil,
planting of crops, growing of fruit trees, raising of fsh,
including the harvesting of such farm products, and
other farm activities and practices performed by a
farmer in conjunction with such farming operations
done by persons whether natural or juridical [Section
3(b)].
c. Conditions of the Capital Stock Transfer.
i. The books of the corporation shall be subject to
periodic audit by certifed public accountants chosen
by the benefciaries;
ii. The benefciaries shall be assured of at least one (1)
representative in the board of directors, or in a
management or executive committee, if one exists;
iii. Any share acquired by the benefciaries shall have
the same rights and features as all other shares; and
iv. Any transfer of shares of stock by the original benefciaries shall be void ab initio unless said transaction
is in favor of a qualifed and registered benefciary
within the same corporation.
d. Period for Compliance: If within TWO (2) YEARS from
the approval of CARL or from the approval of the PARC
of the plan for stock distribution, the stock transfer is
not made or realized, the agricultural land shall be
subject to compulsory coverage of the CARL.
IX.

Support Services

30

A. General Support and Coordinative Services [Section 35]

1. Irrigation facilities;
2. Infrastructure development and public works projects in
areas and settlements that come under agrarian reform;
3. Government subsidies for the use of irrigation facilities;
4. Price support and guarantee for all agricultural produce;
5. Extending the necessary credit;
6. Promoting, developing and extending fnancial assistance
to small and medium scale industries in agrarian reform
areas;
7. Assigning sufficient numbers of agricultural extension
workers to farmers' organizations;
8. Undertaking research, development and dissemination of
information on agrarian reform and low-cost and
ecologically sound farm inputs and technologies to
minimize reliance on expensive and imported agricultural
inputs;
9. Development of cooperative management through
intensive training;
10. Assistance in the identifcation of ready markets for
agricultural produce and training in other various aspects
of marketing; and
11. Administration, operation, management and funding of
support service programs and projects including pilot
projects and models related to agrarian reform.
B. Support Services to Beneficiaries [Section 37]
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 and support to
cooperatives and farmers' organizations;
4. Infrastructure such as access trail, mini-dams, public

31

utilities, marketing and storage facilities; and

5. Research, production and use of organic fertilizers and
other local substances necessary in farming and
cultivation.
C. Support Services to Landowners [Section 38]
1. Investment information, fnancial and counselling assistance;
2. Facilities, programs and schemes for the conversion or
exchange of bonds issued for payment of the lands
acquired with stocks and bonds issued by the National
Government, the Central Bank and other government
institutions and instrumentalities;
3. Marketing of LBP bonds, as well as promoting the
marketability of said bonds in traditional and nontraditional fnancial markets and stock exchanges;
4. Other services designed to utilize productively the
proceeds of the sale of such lands for rural industrialization;
5. Incentives granted to a registered enterprise engaged in a
pioneer or preferred area of investment as provided for in
the Omnibus Investment Code or granted by the PARC, the
LBP or other government fnancial institutions for those
who invests in rural-based industries; and
6. Redemption by the LBP of up to thirty percent (30%) of the
face value of the its bonds for landowners who will invest
the proceeds of the redemption in a BOI-registered
company or in any agri-business or agro-industrial
enterprise in the region where they have previously made
investments.
D. Funding
* At least twenty-fve percent (25%) of all appropriations for
agrarian reform shall be immediately set aside and made

32

available for support services. In addition, the DAR shall

be authorized to package proposals and receive grants,
aid and other forms of fnancial assistance from any
source. [Section 36]
X. Special Areas of Concern [Section 40]
A. Subsistence Fishing: Small fsherfolk, including seaweed
farmer, shall be assured of greater access to the utilization of
water resources.
B. Logging and Mining Concessions:
Subject to the
requirement of a balanced ecology and conservation of water
resources, suitable areas in logging, mining and pasture
areas, shall be opened up for agrarian settlements whose
benefciaries shall be required to undertake reforestation and
conservation production methods.
* Certifcates of Stewardship Contracts are issued for forest
areas under the Integrated Social Forestry Program.
C. Sparsely Occupied Public Agricultural Lands: Sparsely
occupied agricultural lands of the public domain shall be
surveyed, proclaimed and developed as farm settlements for
qualifed landless people.
* Agricultural land allocations shall be made for ideal familysize farms.
* Uncultivated lands of the public domain shall be made
available on a lease basis to interested and qualifed
parties. Priority shall be given to those who will engage in
the development of capital-intensive, traditional or
pioneering crops.

33

D. Idle, Abandoned, Forecloses and Sequestered Lands:

Idle, abandoned, foreclosed and sequestered lands shall be
planned for distribution as home lots and family-size farmlots
to actual occupants. If land area permits, other landless
families shall be accommodated in these lands.
E. Rural Women:
All qualifed women members of the
agricultural labor force must be guaranteed and assured
equal rights to ownership of the land, equal shares of the
farm's produce, and representation in advisory or appropriate
decision-making bodies.
F. Veterans and Retirees:
Landless ware veterans and
veterans of military campaigns, their surviving spouses and
orphans, retirees of the Armed Forces of the Philippines and
the Integrated National Police, returnees, surrenderees and
similar benefciaries shall be given due consideration in the
disposition of agricultural lands of the public domain.
G. Agriculture Graduates: Graduates of agricultural schools
who are landless shall be assisted by the government in their
desire to own and till agricultural lands.

XI.

Program Implementation

A. Presidential Agrarian Reform Council (PARC)

1. Composition [Section 41]
a. Chairman: President of the Philippines
b. Vice-Chairman: Secretary of Agrarian Reform
c. Members:
i. Secretary of Agriculture;
ii. Secretary of Environment and Natural Resources;
iii. Secretary of Budget and Management;

34

iv. Secretary of Local Government;

v. Secretary of Public Works and Highways;
vi. Secretary of Trade and Industry;
vii. Secretary of Finance;
viii. Secretary of Labor and Employment;
ix. Director-General
of
National
Economic
and
Development Authority;
x. President of Land Bank of the Philippines;
xi. Administrator of National Irrigation Authority;
xii. Three (3) representatives of affected landowners to
represent Luzon, Visayas and Mindanao; and
xiii. Six (6) representatives of agrarian reform benefciaries, two (2) each from Luzon, Visayas and Mindanao,
provided that one of them shall be from cultural
communities.
2. Functions and Duties [EO 229, 1987]
a. Formulate and implement policies, rules and regulations
necessary to implement the CARP;
b. Recommend small farm economy areas;
c. Schedule the acquisition and distribution of specifc
agrarian reform areas; and
d. Control mechanisms for evaluating the owner's declaration of current fair market value.
3. Executive Committee (EXCOM) of the PARC [Section 42]
a. There shall be an Executive Committee of the PARC
which shall meet and decide on any and all matters in
between meetings of the PARC: Provided, however,
That its decision must be reported in the PARC
immediately and not later than the next meeting.
b. Composition: The Secretary of Agrarian Reform shall be
the Chairman and its members shall be designated by
the President, taking into account Article XIII, Section 5
of the Constitution (Rights of farmers to participate in
the planning, organization and management of the

35

CARP).
4. PARC Secretariat [Section 43]
a. A PARC Secretariat is established to provide general
support and coordinative services such as inter-agency
linkages, program and project appraisal and evaluation
and general operations monitoring for the PARC.
b. Composition: The Secretariat shall be headed by the
Secretary of Agrarian Reform who shall be assisted by
an Undersecretary and supported by a staff whose
composition shall be determined by the PARC Executive
Committee.
B. Provincial Agrarian Reform Coordinating Committee
(PARCCOM)
1. Composition (Section 44)
a. Chairman: an appointee of the President upon recommendation of the PARC EXCOM;
b. Executive Officer: Provincial Agrarian Reform Officer;
c. Members:
i. Representative from the Department of Agriculture;
ii. Representative for the Department of Environment
and Natural Resources;
iii. Representative for the Land Bank of the Philippines;
iv. One representative each from existing farmers' organizations, agricultural cooperatives and non-governmental organizations in the province;
v. Two representatives from the landowners, at least
one of whom shall be a producer representing the
principal crop of the province;
vi. Two representatives from farmers and farmworker
benefciaries, at least one of whom shall be a farmer
or farmworker representing the principal crop of the
province; and

36

vii. In areas where there are cultural communities,

there shall be one representative from them.
2. Functions and Duties
a. Coordinate and monitor the implementation of the CARP
in the province;
* The PARC shall provide the guidelines for a provinceby-province implementation of the CARP. The tenyear program of distribution of public and private
lands in each province shall be adjusted from year to
year by the province's PARCCOM, in accordance with
the level of operations previously established by the
PARC, in every case ensuring that support services
are available or have been programmed before actual
distribution is effected. [Section 45]
b. Provide information on the following:
i. Provisions of the CARP;
ii. Guidelines issued by the PARC; and
iii. Progress of the CARP in the province.
C. Barangay Agrarian Reform Committee (BARC)
1. Composition [EO 229, 1987]
* The BARC shall be operated on a self-help basis and will
be composed of the following:
a. Representatives of farmer and farmworker benefciaries;
b. Representatives of farmer and farmworker non-benefciaries;
c. Representatives of agricultural cooperatives;
d. Representatives of other farmer organizations;
e. Representatives of the Barangay Council;
f. Representatives of non-governmental organization
(NGOs);
g. Representatives of landowners;

37

h. Department of Agriculture official assigned to the area;

i. Department of Environment and Natural Resources official assigned to the area;
j. DAR Agrarian Reform Technologist assigned to the area;
and
k. Land Bank of the Philippines representative.
2. Functions [EO 229, 1987 and Section 47]
* The BARC shall have the following functions:
a. Mediate and conciliate between parties involved in an
agrarian dispute;
b. Assist in the identifcation of qualifed benefciaries and
landowners within the barangay;
c. Attest to the accuracy of the initial parcellary mapping
of the benefciary's tillage;
d. Assist qualifed benefciaries in obtaining credit from
lending institutions;
e. Assist n the initial determination of the value of the
land;
f. Assist the DAR representative in the preparation of
periodic reports on the CARP implementation;
g. Coordinate the delivery of support services to benefciaries;
h. Participate and give support in the implementation of
CARP; and
i. Perform such other functions as may be assigned by the
PARC and DAR.

D. Others
1. No injunction, restraining order, prohibition or mandamus
shall be issued by the lower courts against the DAR, DA,
DENR and DOJ in their implementation of CARP. [Section

38

68]
* This does not apply to the Supreme Court.
2. The PARC, in the exercise of its functions, is hereby authorized to call upon the assistance and support of other
government agencies, bureaus and offices, including
government-owned or controlled corporations. [Section 69]
XII. Administrative Adjudication
A. Jurisdiction
1. The Department of Agrarian Reform is hereby vested with
primary jurisdiction to determine and adjudicate
agrarian reform matters and shall have exclusive
original jurisdiction over all matter involving the
implementation of agrarian reform, except those
falling under the exclusive jurisdiction of the Department
of Agriculture and the Department of Environment and
Natural Resources. [Section 50]
2. DAR Adjudicator
a. Department of Agrarian Reform Adjudication Board
(DARAB)
i. Exercises both original and appellate jurisdiction
ii. Exercises functional supervision over the RARADs and
PARADs
b. Regional Agrarian Reform Adjudicator (RARAD)
i. Executive Adjudicator in his region
ii. Receives, hears and adjudicates cases which the
PARAD cannot handle because the latter is disqualifed or inhibits himself or because the case is
complex or sensitive

39

c. Provincial Agrarian Reform Adjudicator (PARAD)

3. Exclusive Jurisdiction of the Secretary of Agrarian Reform
* Matter involving strictly the administrative
implementation of the CARP and agrarian laws
and regulations shall be the exclusive prerogative of
and cognizable by the Secretary of Agrarian Reform
B. BARC Certification Requirement
1. The DAR shall not take cognizance of any agrarian dispute
of controversy unless a certifcation from the BARC that
the dispute has been submitted to it for mediation and
conciliation without any success of settlement is
presented. [Section 53]
* Failure to present a BARC certifcation is not a ground for
dismissal of the action. The complainant or petitioner
will be given every opportunity to secure the BARC
certifcation. [Rule III, Section 1(c) of the DARAB Rules]
2. Exceptions to the BARC Certifcation Requirement:
a. Failure of the BARC to issue a certifcation within thirty
(30) days after a matter or issue is submitted to it;
b. The required certifcation cannot be complied with for
valid reasons like the non-existence or non-organization
of the BARC or the impossibility of convening it. A
certifcation to that effect may be issued by the proper
agrarian reform officer in lieu of the BARC certification;
[Rule III, Section 1(b) of DARAB Rules]
c. The issue involves the valuation of the land to determine just compensation; [Rule III, Section 2 of DARAB
Rules]
d. The parties reside in different barangays, unless they
adjoin each other;

40

* Where the lands involved in the dispute straddles two

or more barangays, the BARC of the Barangay where
the biggest portion lies, shall have the authority to
conduct the mediation or conciliation proceeding.
e. One of the party is a public or private corporation, a
partnership, association or juridical person, or a public
officer or employee and the dispute relates to the
performance of his official functions;
f. The issue involves merely the administrative implementation of agrarian reform law, rule, guideline or policy;
and
g. The issue is beyond the pale of mediation, conciliation
or compromise, as determined by the Secretary of
Agrarian Reform.
C. Rules of Procedure
1. It shall not be bound by technical rules of procedure and
evidence but shall proceed to hear and decide all cases,
disputes or controversies in a most expeditious manner,
employing all reasonable means to ascertain the facts of
every case in accordance with justice and equity and the
merits of the case. [Section 50]
2. Responsible leaders shall be allowed to represent themselves, their fellow farmers, or their organizations in any
proceedings before the DAR [Section 50]
3. To discourage frivolous or dilatory appeals from the decision or order on the local or provincial levels, the DAR may
impose reasonable penalties, including but not limited to
fnes or censures upon erring parties. [Section 52]
D. Enforcement Powers
1. It shall have the power to summon witnesses, administer

41

oaths, take testimony, require submission of reports,

compel the production of books and documents and
answers to interrogatories and issue subpoena, and
subpoena duces tecum and to enforce its writs through
sheriffs or other duly deputized officers. It shall likewise
have the power to punish direct and indirect contempt in
the same manner and subject to the same penalties as
provided in the Rules of Court. [Section 50]
2. The DAR has executed a Memorandum of Agreement with
the Philippine National Police, in order that the latter may
assist the DAR in the enforcement of its orders.
E. Judicial Review
1. Any decision, order, award or ruling of the DAR on any
agrarian dispute or on any matter pertaining to the
application, implementation, enforcement or interpretation
of the CARL and other pertinent laws on agrarian reform
may be brought to the Court of Appeals by certiorari
within fifteen (15) days from receipt of a copy
thereof. [Section 54]
2. The fndings of fact of the DAR shall be fnal and conclusive
if based on substantial evidence.
3. Notwithstanding an appeal to the Court of Appeals, the
decision of the DAR shall be immediately executory.
[Section 50]
XIII. Special Agrarian Court
A. Jurisdiction [Section 57]
1. The Special Agrarian Courts (Regional Trial Courts) shall

42

have original and exclusive jurisdiction over:

a. All petitions for the determination of just compensation
to landowners; and
b. The prosecution of all criminal offenses under the CARL.
2. The Special Agrarian Courts, upon their own initiative or at
the instance of any of the parties, may appoint one or
more commissioners to examine, investigate and ascertain
facts relevant to the dispute, including the valuation of
properties and to fle a written report thereof with the
court.
B. Appeals
1. Appeal from the Decision of the Special Agrarian Court
* Within fifteen (15) days from the receipt of the decision
of the Special Agrarian Court, an appeal may be taken by
filing a petition for review with the Court of Appeals.
2. Appeal from the Decision of the Court of Appeals
* Within a non-extendible period of fifteen (15) days
from the receipt of the decision of the Court of Appeals, an
appeal may be taken by filing a petition for review with
the Supreme Court.
XIV. Prohibited Acts and Omissions
A. Prohibited Acts and Omissions
1. Section 73. The following are prohibited.
a. The ownership or possession, for the purpose of circum-

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b.
c.

d.
e.

venting the provisions of CARL, 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 farmer-benefciaries.
The forcible entry or illegal detainer by persons who are
not qualifed benefciaries to avail themselves of the
rights and benefts of the CARP.
The conversion by any landowner of his agricultural land
into non-agricultural uses with intent to avoid the
application of CARL to his landholdings and to dispossess his tenant farmers of the land tilled by them.
The willful prevention or obstruction by any person,
association or entity of the implementation of the CARP.
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 CARL.
i. Upon the effectivity of CARL, any sale, disposition,
lease, management contract or transfer of possession
of private lands executed by the original landowner in
violation of CARL shall be null and void; Provided,
however, that those executed prior to CARL shall be
valid only when registered with the Register of Deeds
within a three (3) months after the effectivity of
CARL. [Section 6]
* Exception: Banks and other fnancial institutions
allowed by law to hold mortgage rights or security
interests in agricultural lands to secure loans and
other obligations of borrowers, may acquire title to
these mortgaged properties, regardless of area, subject to existing laws on compulsory transfer of foreclosed assets and acquisition as prescribed under
Section 16 of CARL [Section 71]
ii. Disposition of private lands is in violation of CARL if it
is over the retention limit.
iii. The date of registration of the deed of conveyance in

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the Register of Deeds with respect to title lands and

the date of the issuance of the tax declaration to the
transferee of the property with respect to untitled
lands shall be conclusive for this purpose.
f. The sale, transfer of conveyance by a benefciary of the
right to use or any other usufructuary right over the
land he acquired by virtue of being a benefciary, in
order to circumvent the provisions of CARL. [Refer to
VII(E) of this Outline]
2. Any person who knowingly or willfully violates the
provisions of CARL shall be punished by imprisonment of
not less than one (1) month to not more than three (3)
years or a fne of not less than one thousand pesos
(P 1,000.00) and not more than ffteen thousand pesos
(P 15,000.00), or both at the discretion of the court.
If the offender is a corporation or association, the officer
responsible therefor shall be criminally liable.
B. Conversions
1. Authority to Allow Conversion of Agricultural Land for Nonagricultural Uses
a. Under Executive Order No. 129-A, Series of 1987, the
Department of Agrarian Reform is authorized to:
i. Approve or disapprove the conversion, restructuring
or readjustment of agricultural lands into non-agricultural uses; [Section 4(j)]
ii. Have exclusive authority to approve or disapprove
conversion of agricultural lands for residential,
commercial, industrial and other land uses as may be
provided for by law. [Section 5(l)]
b. The Comprehensive Agrarian Reform Law provides that
the DAR ... may authorize the reclassifcation or conver-

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sion on the land and its disposition. [Section 65]

2. Conversion
a. After the lapse of fve (5) years from its award, when the
land ceases to be economically feasible and sound for
agricultural purposes, or the locality has become highly
urbanized and the land will have greater economic
value for residential, commercial or industrial purposes,
the DAR, upon application of the benefciary or the
landowner, may authorize the reclassifcation or
conversion on the land and its disposition: Provided,
That the benefciary shall have fully paid his obligation.
[Section 65]
b. Grounds for conversion
i. Five (5) years had lapsed from the award of the land;
ii. The land ceases to be economically feasible and
sound for agricultural purposes, or the locality has
become highly urbanized and the land will have
greater economic value for residential, commercial or
industrial purposes; and
iii. Benefciary shall have fully paid his obligation.
c. Administrative Order No. 20, Series of 1992 [Took effect
on 30 December 1992]
* President Fidel V. Ramos directed the observance by
all agencies and local government units the following
interim guidelines on agricultural land use conversion.
i.All irrigated or irrigable agricultural lands shall not
be subject to and non-negotiable for conversion;
ii. All other agricultural lands may be converted only
upon strict compliance with existing laws, rules
and regulations.

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3. Disturbance Compensation
* Section 36(1) of Republic Act No. 3844, as amended
provides: the agricultural lessee shall be entitled to
disturbance compensation equivalent to fve years
rental on his landholding.
* Displaced farmers are entitled to disturbance
compensation which varies depending on the
agreement between the farmers and the landowners.

XV.

Relation to Other Laws

A. Suppletory Application: The provisions of Republic Act No.

3844, as amended, Presidential Decree Nos. 27 and 266, as
amended, Executive Order Nos. 228 and 229, both Series of
1987; and other laws not inconsistent with this Act shall have
suppletory effect. [Section 75]
B. Repealing Clause: Section 35 of Republic Act No. 3844,
Presidential Decree No. 316, the last two paragraphs of
Section 12 of Presidential Decree No. 946, Presidential
Decree No. 1038, and all other laws, decrees, executive
orders, rules and regulations, issuances or parts thereof
inconsistent with CARL are hereby repealed or amended accordingly.
XVI. Effectivity
* CARL takes effect immediately after publication in at least
two (2) national newspapers of general circulation. CARL was
printed 15 June 1988.

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