Professional Documents
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(CARL)
1. The redistribution of lands
i. Regardless of crops or fruits produced
2. To farmers and regular farm workers
i. Who are landless
3. Irrespective of tenurial arrangement
4. To include the totality of factors and support services
i. Designed to lift the economic status of the beneficiaries and
ii. All other arrangements alternative to the physical redistribution of lands
a. Such as production or profit-sharing,
b. Labor administration, and
c. The distribution of shares of stock which will allow beneficiaries to receive a just share of the fruits of the
lands they work.
RA 6657 (CARL; 15 Jun 1988)
Who are Covered?
1. All public and private agricultural lands
i. Regardless of tenurial arrangement and
ii. Commodity produced
2. Including other lands of public domain
i. Suitable for agriculture
3. More specifically
i. Alienable and disposable lands of public domain
a. Devoted to or suitable for agriculture.
b. No reclassification of forest or mineral until Congress specifies limits of public domain.
ii. Lands of public domain
a. In excess of specific limits determined by Congress.
iii. Lands owned by Government
a. Devoted to or suitable for agriculture.
iv. Private lands
a. Devoted to or suitable for agriculture
b. Regardless of agricultural products raised or that can be raised.
What are the Retention Limits?
1. No person may own or retain, directly or indirectly, any public or private agricultural land
i. Exceeding 5 hectares
ii. 3 hectares may be awarded to each child
a. At least 15 years old and
b. Actually tilling or managing the land.
iii. Provided, that landowners shall be allowed to retain original areas of land
a. Covered by PD 27 and
b. Original homestead grantees or their direct compulsory heirs.
2. The landowner has the right to choose the area to be retained
i. Which shall be compact or contiguous
ii. If tenanted, tenant has option to choose
a. To remain as tenant or
- Considered leaseholder; loses right to be beneficiary.
b. To be a beneficiary in same or another land
- Loses right to be leaseholder.
iii. Tenant must choose within 1 year from time landowner chooses retention area.
3. Security of tenure shall be respected.
4. Any disposition shall be null and void
i. Provided, those executed before this Act
a. Valid when registered with RoD
b. Within 3 months after effectivity.
Exemptions
Lands actually, directly, and exclusively used for
1. Parks, Wildlife, Forest reserves, Reforestation, Fish sanctuaries and Breeding grounds, Watersheds, and Mangroves
2. National defense
3. School sites and campuses, including experimental farm stations
i. Operated by public or private schools for educational purpose
ii. Seed and seedling research and
iii. Pilot production centers
4. Church sites and convents
5. Mosque sites and Islamic centers
6. Communal burial grounds and cemeteries
7. Penal colonies and penal farms
8. Government and private research and quarantine centers and
9. Lands with 18% slope or more
i. Except those already developed.
RA 3844
Leasehold Tenancy, Definition
1. Exists when a person who either
i. Personally or
ii. With aid of labor from members of immediate farm household
2. Undertakes to cultivate a piece of agricultural land
i. Susceptible of cultivation by a single person
ii. Together with members of immediate farm household
3. Belonging to or legally possessed by another
4. In consideration of a fixed amount
i. In money or
ii. Produce or
iii. Both
How Leasehold Relation is Established
1. by operation of law
2. either orally or in writing,
3. expressly or impliedly.
Parties to Leasehold Relation
1. Person who furnishes the landholding, either
i. as owner,
ii. civil law lessee (legally entitled to possess and sublease the land),
iii. usufructuary, or
iv. legal possessor, and
2. Person who personally cultivates the same.
Extinguishment of Leasehold Relation
1. Abandonment of the landholding
i. without the knowledge of the agricultural lessor;
2. Voluntary surrender of the landholding by the agricultural lessee,
i. written notice of which shall be served 3 months in advance; or
3. Absence of the persons under Section 9 to succeed to the lessee,
i. in the event of death or permanent incapacity of the lessee.
Leasehold Relation Not Extinguished by Death or Incapacity of the Parties
In case of death or permanent incapacity of the agricultural lessee to work his landholding, the leasehold shall continue between
1. the agricultural lessor and
2. the person who can cultivate the landholding personally,
i. chosen by the agricultural lessor
ii. within 1 month from such death or permanent incapacity, from among the following:
a. the surviving spouse;
b. the eldest direct descendant by consanguinity; or
c. the next eldest descendant or descendants in the order of their age:
iii. Provided, That in case the death or permanent incapacity of the agricultural lessee
a. occurs during the agricultural year,
b. such choice shall be exercised at the end of that agricultural year:
iv. Provided, further, That in the event the agricultural lessor fails to exercise his choice within the periods herein provided,
a. the priority shall be in accordance with the order herein established.
v. In case of death or permanent incapacity of the agricultural lessor,
a. the leasehold shall bind his legal heirs.
Leasehold Relation Not Extinguished by Expiration of Period, etc.
The agricultural leasehold relation under this Code shall not be extinguished
1. by mere expiration of the term or period in a leasehold contract nor
2. by the sale, alienation or transfer of the legal possession of the landholding.
i. In case the agricultural lessor sells, alienates or transfers the legal possession of the landholding,
ii. the purchaser or transferee thereof shall be subrogated to the rights and substituted to the obligations of the agricultural
lessor.
When Rent May be Increased(Cost of Irrigation System)
The cost of construction of a permanent irrigation system, including distributory canals,
1. may be borne exclusively by the agricultural lessor
i. who shall be entitled to an increase in rental proportionate to the resultant increase in production:
2. Provided, That if the agricultural lessor refuses to bear the expenses of construction
i. the agricultural lessee or lessees may shoulder the same,
ii. in which case the former shall not be entitled to an increase in rental and
iii. shall, upon the termination of the relationship, pay the lessee or his heir
iv. the reasonable value of the improvement at the time of the termination:
3. Provided, further, That if the irrigation system constructed does not work,
i. it shall not be considered as an improvement within the meaning of this Section.
Consideration for the Lease of Riceland and Lands Devoted to Other Crops
The consideration for the lease of riceland and lands devoted to other crops
1. shall not be more than the equivalent of 25% of the average normal harvest
2. during the 3 agricultural years immediately preceding the date the leasehold was established
3. after deducting the amount used for seeds and the cost of harvesting, threshing, loading, hauling and processing, whichever are
applicable:
Provided, That if the land has been cultivated for a period of less than 3 years,
1. the initial consideration shall be based on the average normal harvest during the preceding years when the land was actually
cultivated, or
2. on the harvest of the first year in the case of newly-cultivated lands, if that harvest is normal:
Provided, further, That after the lapse of the first 3 normal harvests,
1. the final consideration shall be based on the average normal harvest during these 3 preceding agricultural years:
Provided, furthermore, That in the absence of any agreement between the parties as to the rental,
1. the maximum allowed herein shall apply:
Provided, finally, That if capital improvements are introduced on the farm not by the lessee to increase its productivity,
1. the rental shall be increased proportionately to the consequent increase in production due to said improvements.
2. In case of disagreement, the Court shall determine the reasonable increase in rental.
7 Grounds for Dispossession (Possession of Landholding; Exceptions)
Notwithstanding any agreement
1. as to the period or future surrender, of the land,
2. an agricultural lessee shall continue in the enjoyment and possession of his landholding
3. except when his dispossession has been authorized by the Court in a judgment that is final and executory
4. if after due hearing it is shown that:
i. The agricultural lessor-owner or a member of his immediate family
a. will personally cultivate the landholding or
b. will convert the landholding, if suitably located, into residential, factory, hospital or school site or other useful
non-agricultural purposes:
c. Provided; That the agricultural lessee shall be entitled to disturbance compensation
- equivalent to 5 years rental on his landholding in addition to his rights under Sections 25 and 34,
- except when the land owned and leased by the agricultural lessor, is not more than 5 hectares,
- in which case instead of disturbance compensation the lessee may be entitled to an advanced
notice of at least 1 agricultural year before ejectment proceedings are filed against him:
d. Provided, further, That should the landholder not cultivate the land himself for 3 years or fail to substantially
carry out such conversion within 1 year after the dispossession of the tenant,
- it shall be presumed that he acted in bad faith and
- the tenant shall have the right to demand possession of the land and
- recover damages for any loss incurred by him because of said dispossessions.
ii. The agricultural lessee failed to substantially comply
a. with any of the terms and conditions of the contract or
b. any of the provisions of this Code
c. unless his failure is caused by fortuitous event or force majeure;
iii. The agricultural lessee planted crops or used the landholding
a. for a purpose other than what had been previously agreed upon;
iv. The agricultural lessee failed to adopt proven farm practices
a. as determined under paragraph 3 of Section 29;
v. The land or other substantial permanent improvement thereon is substantially damaged or destroyed or has
unreasonably deteriorated
a. through the fault or negligence of the agricultural lessee;
vi. The agricultural lessee does not pay the lease rental when it falls due:
a. Provided, That if the non-payment of the rental shall be due to crop failure to the extent of 75% as a result of
a fortuitous event,
b. the non-payment shall not be a ground for dispossession,
c. although the obligation to pay the rental due that particular crop is not thereby extinguished; or
vii. The lessee employed a sub-lessee on his landholding
a. in violation of the terms of paragraph 2 of Section 27.
Burden of Proof
The burden of proof
1. to show the existence of a lawful cause for the ejectment of an agricultural lessee shall rest
2. upon the agricultural lessor.
Statute of Limitations
An action to enforce any cause of action under this Code shall be barred if not commenced
1. within 3 years
2. after such cause of action accrued.
Conversion of Lands Prior to 15 Jun 1988 in Order to be Exempt from CARL (AO4-2003)
Must secure
1a. DENR Certification or
i. For mineral and forest lands
ii. Secured prior to 15 Jun 1988 (if not, cannot be exempted)
iii. Property must not be covered by PD 27 (Oct 1972) thus, if zoning done after PD 27, cannot claim exemption since
already declared as agri land (?)
1b. HLURB Certification and
i. For residential, commercial, and industrial lands
ii. Secured prior to 15 Jun 1988 (if not, cannot be exempted)
iii. Property must not be covered by PD 27 (Oct 1972) thus, if zoning done after PD 27, cannot claim exemption since
already declared as agri land (?)
2. National Irrigation Administration Certification
i. Even if resold as residential, commercial, or industrial, cannot be exempt without certification
ii. Purpose of government investment in such is to provide water for farming and thus, must remain as agri land
Conversion of Lands On or After 15 Jun 1988 to Non-Agri Use (AO1-2002)
Authorized if, after 5 years, agricultural land
1. Ceases to be economically feasible and sound for agri purposes (involves zoning or re-zoning) or
2. Locality has become urbanized and land will have greater value for residential, commercial, or industrial purposes
(even if zoning remains as agri land)
Exception from Conversion
1. Irrigated (due to government investment) or Irrigable Land (as determined by NIA; already programmed and funded)
2. Protected Land (as designated by government)
30+ documents needed for application for conversion (Sec 10)
1. Most important is zoning ordinance or locality has become urbanized
2. Must post a bond (at least 2.5% zonal value or 15% GSIS-issued bond; to prevent premature conversion prior to
conversion order)
3. Development and Financing Plan (to avoid mere scheme to place land out of CARL coverage)
4. Pictures and posting requirements
After grant of Conversion Order
1. Bond posted becomes a Performance Bond (to develop property as stated in application for conversion; no changing of
development plan, if so, must re-apply for conversion)
2. Abide with Conversion Rate (must develop 5 hectares per year, to be completed in 5 years)
But, if property is exempt (DENR/HLURB and NIA Certification)
1. May immediately develop property without going to DAR (RA 3844)
2. Requires Disturbance Compensation (Annual Gross Harvest x 5; for farmers who are working on such agri land)
Jurisdiction/Appeals
1. DAR (Execution)
RO - PARO - MARO - Secretary
* May go straight from RO to Secretary since most PAROs and MAROs have been devolved to LGUs
* DAR exclusive jurisdiction over Agrarian Law Implementation cases (refer to Sec 2 of DAR AO3-2003)
2. PARC/Presidential Agrarian Reform Council (Policy-Making)
EXECOM - PARCCOM
3. DARAB (Quasi-Judicial)
BOARD - RARAD - PARAD - DARAB
* DARAB exclusive jurisdiction over Agrarian Dispute cases (refer to Sec 3 of DAR AO3-2003)
4. BARC (Functions cut across all 3 branches above)
* Special Agrarian Report on Land Valuation Issued by
1. PARAD (value is less than P10M)
2. RARAD (P10M to less than P50M)
3. DARAB (P50M and above)