CARP,ortheComprehensiveAgrarianReformProgram,istheredistributionofpublicand

privateagriculturallandstofarmersandfarmworkerswhoarelandless,irrespectiveoftenurial
arrangement.CARPsvisionistohaveanequitablelandownershipwithempoweredagrarian
reformbeneficiarieswhocaneffectivelymanagetheireconomicandsocialdevelopmenttohave
abetterqualityoflife.

OneofthemajorprogramsofCARPisLandTenureImprovement,whichseekstohasten
distributionoflandstolandlessfarmers.Similarly,theDepartmentoffersSupportServicestothe
beneficiariessuchasinfrastructurefacilities,marketingassistanceprogram,creditassistance
program,andtechnicalsupportprograms.Furthermore,thedepartmentseekstofacilitate,
resolvecasesanddeliverAgrarianJustice.

ThelegalbasisforCARPistheRepublicActNo.6657otherwiseknownasComprehensive
AgrarianReformLaw(CARL)signedbyPresidentCorazonC.AquinoonJune10,1988.Itisan
actwhichaimstopromotesocialjusticeandindustrialization,providingthemechanismforits
implementation,andforotherpurposes.

REPUBLICACTNO.6657
(June10,1988)
ANACTINSTITUTINGACOMPREHENSIVEAGRARIANREFORMPROGRAMTOPROMOTE
SOCIALJUSTICEANDINDUSTRIALIZATION,PROVIDINGTHEMECHANISMFORITS
IMPLEMENTATION,ANDFOROTHERPURPOSES

CHAPTERI
PreliminaryChapter

SECTION1.Title.ThisActshallbeknownastheComprehensiveAgrarianReformLawof
1988.

SECTION2.DeclarationofPrinciplesandPolicies.ItisthepolicyoftheStatetopursuea
ComprehensiveAgrarianReformProgram(CARP).Thewelfareofthelandlessfarmersand
farmworkerswillreceivethehighestconsiderationtopromotesocialjusticeandtomovethe
nationtowardsoundruraldevelopmentandindustrialization,andtheestablishmentofowner
cultivatorshipofeconomicsizefarmsasthebasisofPhilippineagriculture.
Tothisend,amoreequitabledistributionandownershipofland,withdueregardtotherightsof
landownerstojustcompensationandtotheecologicalneedsofthenation,shallbeundertaken
toprovidefarmersandfarmworkerswiththeopportunitytoenhancetheirdignityandimprovethe
qualityoftheirlivesthroughgreaterproductivityofagriculturallands.
Theagrarianreformprogramisfoundedontherightoffarmersandregularfarmworkers,who
arelandless,toowndirectlyorcollectivelythelandstheytillor,inthecaseofotherfarm
workers,toreceiveajustshareofthefruitsthereof.Tothisend,theStateshallencourageand
undertakethejustdistributionofallagriculturallands,subjecttotheprioritiesandretentionlimits
setforthinthisAct,havingtakenintoaccountecological,developmental,andequity
considerations,andsubjecttothepaymentofjustcompensation.TheStateshallrespectthe
rightofsmalllandowners,andshallprovideincentivesforvoluntarylandsharing.

TheStateshallrecognizetherightoffarmers,farmworkersandlandowners,aswellas
cooperativesandotherindependentfarmers'organizations,toparticipateintheplanning,
organization,andmanagementoftheprogram,andshallprovidesupporttoagriculturethrough
appropriatetechnologyandresearch,andadequatefinancialproduction,marketingandother
supportservices.

TheStateshallapplytheprinciplesofagrarianreform,orstewardship,wheneverapplicable,in
accordancewithlaw,inthedispositionorutilizationofothernaturalresources,includinglandsof
thepublicdomain,underleaseorconcession,suitabletoagriculture,subjecttopriorrights,
homesteadrightsofsmallsettlersandtherightsofindigenouscommunitiestotheirancestral
lands.

TheStatemayresettlelandlessfarmersandfarmworkersinitsownagriculturalestates,which
shallbedistributedtotheminthemannerprovidedbylaw.Bymeansofappropriateincentives,
theStateshallencouragetheformationandmaintenanceofeconomicsizefamilyfarmstobe
constitutedbyindividualbeneficiariesandsmalllandowners.TheStateshallprotecttherightsof
subsistencefishermen,especiallyoflocalcommunities,tothepreferentialuseofcommunal
marineandfishingresources,bothinlandandoffshore.Itshallprovidesupporttosuch
fishermenthroughappropriatetechnologyandresearch,adequatefinancial,productionand
marketingassistanceandotherservices.TheStateshallalsoprotect,developandconserve
suchresources.Theprotectionshallextendtooffshorefishinggroundsofsubsistence
fishermenagainstforeignintrusion.Fishworkersshallreceiveajustsharefromtheirlaborinthe
utilizationofmarineandfishingresources.

TheStateshallbeguidedbytheprinciplesthatlandhasasocialfunctionandlandownership
hasasocialresponsibility.Ownersofagriculturallandshavetheobligationtocultivatedirectlyor
throughlaboradministrationthelandstheyownandtherebymakethelandproductive.
TheStateshallprovideincentivestolandownerstoinvesttheproceedsoftheagrarianreform
programtopromoteindustrialization,employmentandprivatizationofpublicsectorenterprises.
Financialinstrumentsusedaspaymentforlandsshallcontainfeaturesthatshallenhance
negotiabilityandacceptabilityinthemarketplace.TheStatemayleaseundevelopedlandsofthe
publicdomaintoqualifiedentitiesforthedevelopmentofcapitalintensivefarms,andtraditional
andpioneeringcropsespeciallythoseforexportssubjecttothepriorrightsofthebeneficiaries
underthisAct.

SECTION3.Definitions.ForthepurposeofthisAct,unlessthecontextindicatesotherwise:
(a)AgrarianReformmeansredistributionoflands,regardlessofcropsorfruitsproduced,to
farmersandregularfarmworkerswhoarelandless,irrespectiveoftenurialarrangement,to
includethetotalityoffactorsandsupportservicesdesignedtolifttheeconomicstatusofthe
beneficiariesandallotherarrangementsalternativetothephysicalredistributionoflands,such
asproductionorprofitsharing,laboradministration,andthedistributionofsharesofstocks,
whichwillallowbeneficiariestoreceiveajustshareofthefruitsofthelandstheywork.

(b)Agriculture,AgriculturalEnterpriseorAgriculturalActivitymeansthecultivationofthesoil,
plantingofcrops,growingoffruittrees,raisingoflivestock,poultryorfish,includingthe
harvestingofsuchfarmproducts,andotherfarmactivitiesandpracticesperformedbyafarmer
inconjunctionwithsuchfarmingoperationsdonebypersonwhethernaturalorjuridical.

(c)AgriculturalLandreferstolanddevotedtoagriculturalactivityasdefinedinthisActandnot
classifiedasmineral,forest,residential,commercialorindustrialland.

(d)AgrarianDisputereferstoanycontroversyrelatingtotenurialarrangements,whether
leasehold,tenancy,stewardshiporotherwise,overlandsdevotedtoagriculture,including
disputesconcerningfarmworkers'associationsorrepresentationofpersonsinnegotiating,
fixing,maintaining,changing,orseekingtoarrangetermsorconditionsofsuchtenurial
arrangements.

ItincludesanycontroversyrelatingtocompensationoflandsacquiredunderthisActandother
termsandconditionsoftransferofownershipfromlandownerstofarmworkers,tenantsand
otheragrarianreformbeneficiaries,whetherthedisputantsstandintheproximaterelationof
farmoperatorandbeneficiary,landownerandtenant,orlessorandlessee.

(e)IdleorAbandonedLandreferstoanyagriculturallandnotcultivated,tilledordevelopedto
produceanycropnordevotedtoanyspecificeconomicpurposecontinuouslyforaperiodof
three(3)yearsimmediatelypriortothereceiptofnoticeofacquisitionbythegovernmentas
providedunderthisAct,butdoesnotincludelandthathasbecomepermanentlyorregularly
devotedtononagriculturalpurposes.Itdoesnotincludelandwhichhasbecomeunproductive
byreasonofforcemajeureoranyotherfortuitousevent,providedthatpriortosuchevent,such
landwaspreviouslyusedforagriculturalorothereconomicpurpose.

(f)Farmerreferstoanaturalpersonwhoseprimarylivelihoodiscultivationoflandorthe
productionofagriculturalcrops,eitherbyhimself,orprimarilywiththeassistanceofhis
immediatefarmhousehold,whetherthelandisownedbyhim,orbyanotherpersonundera
leaseholdorsharetenancyagreementorarrangementwiththeownerthereof.

(g)Farmworkerisanaturalpersonwhorendersserviceforvalueasanemployeeorlaborerin
anagriculturalenterpriseorfarmregardlessofwhetherhiscompensationispaidonadaily,
weekly,monthlyor"pakyaw"basis.Thetermincludesanindividualwhoseworkhasceasedasa
consequenceof,orinconnectionwith,apendingagrariandisputeandwhohasnotobtaineda
substantiallyequivalentandregularfarmemployment.

(h)RegularFarmworkerisanaturalpersonwhoisemployedonapermanentbasisbyan
agriculturalenterpriseorfarm.

(i)SeasonalFarmworkerisanaturalpersonwhoisemployedonarecurrent,periodicor
intermittentbasisbyanagriculturalenterpriseorfarm,whetherasapermanentora
nonpermanentlaborer,suchas"dumaan","sacada",andthelike.

(j)OtherFarmworkerisafarmworkerwhodoesnotfallunderparagraphs

(g),(h)and(i).

(k)Cooperativesshallrefertoorganizationscomposedprimarilyofsmallagriculturalproducers,
farmers,farmworkers,orotheragrarianreformbeneficiarieswhovoluntarilyorganize
themselvesforthepurposeofpoolingland,human,technological,financialorothereconomic
resources,andoperatedontheprincipleofonemember,onevote.Ajuridicalpersonmaybea
memberofacooperative,withthesamerightsanddutiesasanaturalperson.

CHAPTERII
Coverage

SECTION4.Scope.TheComprehensiveAgrarianReformLawof1989shallcover,
regardlessoftenurialarrangementandcommodityproduced,allpublicandprivateagricultural
lands,asprovidedinProclamationNo.131andExecutiveOrderNo.229,includingotherlands
ofthepublicdomainsuitableforagriculture.
MorespecificallythefollowinglandsarecoveredbytheComprehensiveAgrarianReform
Program:

(a)Allalienableanddisposablelandsofthepublicdomaindevotedtoorsuitableforagriculture.
Noreclassificationofforestorminerallandstoagriculturallandsshallbeundertakenafterthe
approvalofthisActuntilCongress,takingintoaccountecological,developmentalandequity
considerations,shallhavedeterminedbylaw,thespecificlimitsofthepublicdomain.

(b)AlllandsofthepublicdomaininexcessofthespecificlimitsasdeterminedbyCongressin
theprecedingparagraph

(c)AllotherlandsownedbytheGovernmentdevotedtoorsuitableforagricultureand
(d)Allprivatelandsdevotedtoorsuitableforagricultureregardlessoftheagriculturalproducts
raisedorthatcanberaisedthereon.

SECTION5.ScheduleofImplementation.ThedistributionofalllandscoveredbythisAct
shallbeimplementedimmediatelyandcompletedwithinten(10)yearsfromtheeffectivity
thereof.

SECTION6.RetentionLimits.ExceptasotherwiseprovidedinthisAct,nopersonmayown
orretain,directlyorindirectly,anypublicorprivateagriculturalland,thesizeofwhichshallvary
accordingtofactorsgoverningaviablefamilysizefarm,suchascommodityproduced,terrain,
infrastructure,andsoilfertilityasdeterminedbythePresidentialAgrarianReformCouncil
(PARC)createdhereunder,butinnocaseshallretentionbythelandownerexceedfive(5)
hectares.Three(3)hectaresmaybeawardedtoeachchildofthelandowner,subjecttothe
followingqualifications:(1)thatheisatleastfifteen(15)yearsofageand(2)thatheisactually
tillingthelandordirectlymanagingthefarm:Provided,Thatlandownerswhoselandshavebeen
coveredbyPresidentialDecreeNo.27shallbeallowedtokeeptheareasoriginallyretainedby
themthereunder:Provided,further,Thatoriginalhomesteadgranteesortheirdirectcompulsory
heirswhostillowntheoriginalhomesteadatthetimeoftheapprovalofthisActshallretainthe
sameareasaslongastheycontinuetocultivatesaidhomestead.

Therighttochoosetheareatoberetained,whichshallbecompactorcontiguous,shallpertain
tothelandowner:Provided,however,Thatincasetheareaselectedforretentionbythe
landowneristenanted,thetenantshallhavetheoptiontochoosewhethertoremainthereinorbe
abeneficiaryinthesameoranotheragriculturallandwithsimilarorcomparablefeatures.In
casethetenantchoosestoremainintheretainedarea,heshallbeconsideredaleaseholder
andshalllosehisrighttobeabeneficiaryunderthisAct.Incasethetenantchoosestobea
beneficiaryinanotheragriculturalland,heloseshisrightasaleaseholdertothelandretainedby
thelandowner.Thetenantmustexercisethisoptionwithinaperiodofone(1)yearfromthetime
thelandownermanifestshischoiceoftheareaforretention.Inallcases,thesecurityoftenureof
thefarmersorfarmworkersonthelandpriortotheapprovalofthisActshallberespected.

UpontheeffectivityofthisAct,anysale,disposition,lease,management,contractortransferof
possessionofprivatelandsexecutedbytheoriginallandownerinviolationoftheActshallbenull
andvoid:Provided,however,ThatthoseexecutedpriortothisActshallbevalidonlywhen
registeredwiththeRegisterofDeedswithinaperiodofthree(3)monthsaftertheeffectivityof
thisAct.Thereafter,allRegistersofDeedsshallinformtheDepartmentofAgrarianReform
(DAR)withinthirty(30)daysofanytransactioninvolvingagriculturallandsinexcessoffive(5)
hectares.

SECTION7.Priorities.TheDepartmentofAgrarianReform(DAR)incoordinationwiththe
PresidentialAgrarianReformCouncil(PARC)shallplanandprogramtheacquisitionand
distributionofallagriculturallandsthroughaperiodoften(10)yearsfromtheeffectivityofthis
Act.Landsshallbeacquiredanddistributedasfollows:
PhaseOne:RiceandcornlandsunderPresidentialDecreeNo.27allidleorabandonedlands
allprivatelandsvoluntarilyofferedbytheownersforagrarianreformalllandsforeclosedbythe
governmentfinancialinstitutionsalllandsacquiredbythePresidentialCommissiononGood
Government(PCGG)andallotherlandsownedbythegovernmentdevotedtoorsuitablefor
agriculture,whichshallbeacquiredanddistributedimmediatelyupontheeffectivityofthisAct,
withtheimplementationtobecompletedwithinaperiodofnotmorethanfour(4)years

PhaseTwo:Allalienableanddisposablepublicagriculturallandsallarablepublicagricultural
landsunderagroforest,pastureandagriculturalleasesalreadycultivatedandplantedtocrops
inaccordancewithSection6,ArticleXIIIoftheConstitutionallpublicagriculturallandswhichare
tobeopenedfornewdevelopmentandresettlementandallprivateagriculturallandsinexcess
offifty(50)hectares,insofarastheexcesshectarageisconcerned,toimplementprincipallythe
rightsoffarmersandregularfarmworkers,whoarethelandless,toowndirectlyorcollectively
thelandstheytill,whichshallbedistributedimmediatelyupontheeffectivityofthisAct,withthe
implementationtobecompletedwithinaperiodofnotmorethanfour(4)years.

PhaseThree:Allotherprivateagriculturallandscommencingwithlargelandholdingsand
proceedingtomediumandsmalllandholdingsunderthefollowingschedule:
(a)Landholdingsabovetwentyfour(24)hectaresuptofifty(50)hectares,tobeginonthefourth
(4th)yearfromtheeffectivityofthisActandtobecompletedwithinthree(3)yearsand
(b)Landholdingsfromtheretentionlimituptotwentyfour(24)hectares,tobeginonthesixth
(6th)yearfromtheeffectivityofthisActandtobecompletedwithinfour(4)yearstoimplement
principallytherightoffarmersandregularfarmworkerswhoarelandless,toowndirectlyor
collectivelythelandstheytill.

Thescheduleofacquisitionandredistributionofallagriculturallandscoveredbythisprogram
shallbemadeinaccordancewiththeaboveorderofpriority,whichshallbeprovidedinthe
implementingrulestobepreparedbythePresidentialAgrarianReformCouncil(PARC),taking
intoconsiderationthefollowingtheneedtodistributelandtothetillersattheearliestpracticable
timetheneedtoenhanceagriculturalproductivityandtheavailabilityoffundsandresourcesto
implementandsupporttheprogram.

Inanycase,thePARC,uponrecommendationbytheProvincialAgrarianReformCoordinating
Committee(PARCCOM),maydeclarecertainprovincesorregionasprioritylandreformareas,
inwhichtheacquisitionanddistributionofprivateagriculturallandsthereinmaybeimplemented
aheadoftheaboveschedules.Ineffectingthetransferwithintheseguidelines,prioritymustbe
giventolandsthataretenanted.

ThePARCshallestablishguidelinestoimplementtheaboveprioritiesanddistributionscheme,
includingthedeterminationofwhoarequalifiedbeneficiaries:Provided,Thatanownertillermay
beabeneficiaryofthelandhedoesnotownbutisactuallycultivatingtotheextentofthe
differencebetweentheareaofthelandheownsandtheawardceilingofthree(3)hectares.

SECTION8.MultinationalCorporations.Alllandsofthepublicdomainleased,heldor
possessedbymultinationalcorporationsorassociations,andotherlandsownedbythe
governmentorbygovernmentownedorcontrolledcorporations,associations,institutions,or
entities,devotedtoexistingandoperationalagribusinessoragroindustrialenterprises,operated
bymultinationalcorporationsandassociations,shallbeprogrammedforacquisitionand
distributionimmediatelyupontheeffectivityofthisAct,withtheimplementationtobecompleted
withinthree(3)years.

Landscoveredbytheparagraphimmediatelypreceding,underlease,management,groweror
servicecontracts,andthelike,shallbedisposedofasfollows:
(a)Lease,management,growerorservicecontractscoveringsuchlandscoveringanaggregate
areainexcessof1,000hectares,leasedorheldbyforeignindividualsinexcessof500hectares
aredeemedamendedtoconformwiththelimitssetforthinSection3ofArticleXIIofthe
Constitution.

(b)Contractscoveringareasnotinexcessof1,000hectaresinthecaseofsuchcorporations
andassociations,and500hectares,inthecaseofsuchindividuals,shallbeallowedtocontinue
undertheiroriginaltermsand
conditionsbutnotbeyondAugust29,1992,ortheirvalidtermination,whichevercomessooner,
afterwhich,suchagreementsshallcontinueonlywhenconfirmedbytheappropriate
governmentagency.Suchcontractsshalllikewisecontinueevenafterthelandshasbeen
transferredtobeneficiariesorawardeesthereof,whichtransfershallbeimmediately
commencedandimplementedandcompletedwithintheperiodofthree(3)yearsmentionedin
thefirstparagraphhereof.

(c)Innocasewillsuchleasesandotheragreementsnowbeingimplementedextendbeyond
August29,1992,whenalllandssubjecthereofshallhavebeendistributedcompletelytoqualified
beneficiariesorawardees.Suchagreementscancontinuethereafteronlyunderanewcontract
betweenthegovernmentorqualifiedbeneficiariesorawardees,ontheonehand,andsaid
enterprises,ontheother.Landsleased,heldorpossessedbymultinationalcorporations,owned
byprivateindividualsandprivatenongovernmentalcorporations,associations,institutionsand
entities,citizensofthePhilippines,shallbesubjecttoimmediatecompulsoryacquisitionand
distributionupontheexpirationoftheapplicablelease,management,growerorservicecontract
ineffectasofAugust29,1987,orotherwise,uponitsvalidtermination,whichevercomes
sooner,butnotlaterthanafterten(10)yearsfollowingtheeffectivityoftheAct.Howeverduring
thesaidperiodofeffectivity,thegovernmentshalltakestepstoacquiretheselandsfor
immediatedistributionthereafter.
Ingeneral,landsshallbedistributeddirectlytotheindividualworkerbeneficiaries.Incaseitisnot
economicallyfeasibleandsoundtodividetheland,thentheyshallformaworkers'cooperative
orassociationwhichwilldealwiththecorporationorbusinessassociationoranyotherproper
partyforthepurposeofenteringintoaleaseorgrowersagreementandforallotherlegitimate
purposes.Untilanewagreementisenteredintobyandbetweentheworkers'cooperativeor
associationandthecorporationorbusinessassociationoranyotherproperparty,any
agreementexistingatthetimethisActtakeseffectbetweentheformerandtheprevious
landownershallberespectedbyboththeworkers'cooperativeorassociationandthe
corporation,business,associationorsuchotherproperparty.Innocaseshallthe
implementationorapplicationofthisActjustifyorresultinthereductionofstatusordiminutionof
anybenefitsreceivedorenjoyedbytheworkerbeneficiaries,orinwhichtheymayhaveavested
right,atthetimethisActbecomeseffective,.

TheprovisionsofSection32ofthisAct,withregardtoproductionandincomesharingshall
applytofarmsoperatedbymultinationalcorporations.Duringthetransitionperiod,thenew
ownersshallbeassistedintheireffortstolearnmoderntechnologyinproduction.Enterprises
whichshowawillingnessandcommitmentandgoodfaitheffortstoimpartvoluntarilysuch
advancedtechnologywillbegivenpreferentialtreatmentwherefeasible.
Innocaseshallaforeigncorporation,association,entityorindividualenjoyanyrightsor
privilegesbetterthanthoseenjoyedbyadomesticcorporation,association,entityorindividual.

SECTION9.AncestralLands.ForpurposesofthisAct,ancestrallandsofeachindigenous
culturalcommunityshallinclude,butnotbelimitedto,landsintheactual,continuousandopen
possessionandoccupationofthecommunityanditsmembers:Provided,ThattheTorrens
Systemsshallberespected.Therightofthesecommunitiestotheirancestrallandsshallbe
protectedtoensuretheireconomic,socialandculturalwellbeing.Inlinewiththeprinciplesof
selfdeterminationandautonomy,thesystemsoflandownership,landuse,andthemodesof
settlinglanddisputesofallthesecommunitiesmustberecognizedand
respected.

Anyprovisionoflawtothecontrarynotwithstanding,thePARCmaysuspendtheimplementation
ofthisActwithrespecttoancestrallandsforthepurposeofidentifyinganddelineatingsuch
lands:Provided,Thatintheautonomousregions,therespectivelegislaturesmayenacttheir
ownlawsonancestraldomainsubjecttotheprovisionsoftheConstitutionandtheprinciples
enunciatedinthisActandothernationallaws.

SECTION10.ExemptionsandExclusions.Landsactually,directlyandexclusivelyusedand
foundtobenecessaryforparks,wildlife,forestreserves,reforestation,fishsanctuariesand
breedinggrounds,watersheds,andmangroves,nationaldefense,schoolsitesandcampuses
includingexperimentalfarmstationsoperatedbypublicorprivateschoolsforeducational
purposes,seedsandseedlingsresearchandpilotproductioncenters,churchsitesand
conventsappurtenantthereto,mosquesitesandIslamiccentersappurtenantthereto,communal
burialgroundsandcemeteries,penalcoloniesandpenalfarmsactuallyworkedbytheinmates,
governmentandprivateresearchandquarantinecentersandalllandswitheighteenpercent
(18%)slopeandover,exceptthosealreadydevelopedshallbeexemptfromthecoverageofthe
Act.

SECTION11.CommercialFarming.Commercialfarms,whichareprivateagriculturallands
devotedtocommerciallivestock,poultryandswineraising,andaquacultureincludingsaltbeds,
fishpondsandprawnponds,fruitfarms,orchards,vegetableandcutflowerfarms,andcacao,
coffeeandrubberplantations,shallbesubjecttoimmediatecompulsoryacquisitionand
distributionafter(10)yearsfromtheeffectivityoftheAct.Inthecaseofnewfarms,thetenyear
periodshallbeginfromthefirstyearofcommercialproductionandoperation,asdeterminedby
theDAR.Duringthetenyearperiod,thegovernmentshallinitiatethestepsnecessarytoacquire
theselands,uponpaymentofjustcompensationforthelandandtheimprovementsthereon,
preferablyinfavoroforganizedcooperativesorassociations,
whichshallhereaftermanagethesaidlandsfortheworkerbeneficiaries.IftheDARdetermines
thatthepurposesforwhichthisdefermentisgrantednolongerexist,suchareasshall
automaticallybesubjecttoredistribution.TheprovisionsofSection32oftheAct,withregardto
productionandincomesharing,
shallapplytocommercialfarms.

CHAPTERIII
ImprovementofTenurialandLaborRelations

SECTION12.DeterminationofLeaseRentals.Inordertoprotectandimprovethetenurialand
economicstatusofthefarmersintenantedlandsundertheretentionlimitandlandsnotyet
acquiredunderthisAct,theDARismandatedtodetermineandfiximmediatelytheleaserentals
thereofinaccordancewithSection34ofRepublicActNo.3844,asamended:Provided,Thatthe
DARshallimmediatelyandperiodicallyreviewandadjusttherentalstructurefordifferentcrops,
includingriceandcorn,ordifferentregionsinordertoimproveprogressivelytheconditionsofthe
farmer,tenantorlessee.

SECTION13.ProductionSharingPlan.Anyenterpriseadoptingtheschemeprovidedforin
Section32oroperatingunderaproductionventure,lease,managementcontractorothersimilar
arrangementandanyfarmcoveredbySections8and11hereofisherebymandatedtoexecute
withinninety(90)daysfromtheeffectivityofthisAct,aproductionsharingplan,underguidelines
prescribedbytheappropriategovernmentagency.
Nothinghereinshallbeconstruedtosanctionthediminutionofanybenefitssuchassalaries,
bonuses,leavesandworkingconditionsgrantedtotheemployeebeneficiaries
underexistinglaws,agreements,andvoluntarypracticebytheenterprise,norshallthe
enterpriseanditsemployeebeneficiariesbepreventedfromenteringintoanyagreementwith
termsmorefavorabletothelatter.


CHAPTERIV
Registration

SECTION14.RegistrationofLandowners.Withinonehundredeighty(180)daysfromthe
effectivityofthisAct,allpersons,naturalorjuridical,includinggovernmententities,thatownor
claimtoownagriculturallands,whetherintheirnamesorinthenameofothers,exceptthose
whohavealreadyregisteredpursuanttoExecutiveOrderNo.229,whoshallbeentitledtosuch
incentivesasmaybeprovidedforthePARC,shallfileaswornstatementintheproper
assessor'sofficeintheformtobeprescribedbytheDAR,statingthefollowinginformation:
(a)thedescriptionandareaoftheproperty
(b)theaveragegrossincomefromthepropertyforatleastthree(3)years
(c)thenamesofalltenantsandfarmworkersthereincda
(d)thecropsplantedinthepropertyandtheareacoveredbyeachcropasofJune1,1987
(e)thetermsofmortgages,lease,andmanagementcontractssubsistingasofJune1,1987,
and
(f)thelatestdeclaredmarketvalueofthelandasdeterminedbythecityorprovincialassessor.

SECTION15.RegistrationofBeneficiaries.TheDARincoordinationwiththeBarangay
AgrarianReformCommittee(BARC)asorganizedinthisAct,shallregisterallagricultural
lessees,tenantsandfarmworkerswhoarequalifiedtobebeneficiariesoftheCARP.These
potentialbeneficiarieswiththeassistanceoftheBARCandtheDARshallprovidethefollowing
data:
(a)namesandmembersoftheirimmediatefarmhousehold
(b)ownersoradministratorsofthelandstheyworkonandthelengthof
tenurialrelationship
(c)locationandareaofthelandtheywork
(d)cropsplantedand
(e)theirshareintheharvestoramountofrentalpaidorwagesreceived.
AcopyoftheregistryorlistofallpotentialCARPbeneficiariesinthebarangayshallbepostedin
thebarangayhall,schoolorotherpublicbuildingsinthebarangaywhereitshallbeopento
inspectionbythepublicatallreasonablehours.

CHAPTERV
LandAcquisition

SECTION16.ProcedureforAcquisitionofPrivateLands.Forpurposesofacquisitionof
privatelands,thefollowingproceduresshallbefollowed:
(a)Afterhavingidentifiedtheland,thelandownersandthebeneficiaries,theDARshallsendits
noticetoacquirethelandtotheownersthereof,bypersonaldeliveryorregisteredmail,andpost
thesameinaconspicuousplaceinthemunicipalbuildingandbarangayhalloftheplacewhere
thepropertyislocated.SaidnoticeshallcontaintheofferoftheDARtopayacorresponding
valueinaccordancewiththevaluationsetforthinSections17,18,andotherpertinent
provisionshereof.

(b)Withinthirty(30)daysfromthedateofreceiptofwrittennoticebypersonaldeliveryor
registeredmail,thelandowner,hisadministratororrepresentativeshallinformtheDARofhis
acceptanceorrejectionoftheoffer.

(c)IfthelandowneracceptstheofferoftheDAR,theLandBankofthePhilippines(LBP)shall
paythelandownerthepurchasepriceofthelandwithinthirty(30)daysafterheexecutesand
deliversadeedoftransferinfavorofthegovernmentandsurrenderstheCertificateofTitleand
othermunimentsoftitle.

(d)Incaseofrejectionorfailuretoreply,theDARshallconductsummaryadministrative
proceedingstodeterminethecompensationforthelandrequiringthelandowner,theLBPand
otherinterestedpartiestosubmitevidenceastothejustcompensationfortheland,withinfifteen
(15)daysfromthereceiptofthenotice.Aftertheexpirationoftheaboveperiod,thematteris
deemedsubmittedfordecision.TheDARshalldecidethecasewithinthirty(30)daysafteritis
submittedfordecision.

(e)Uponreceiptbythelandownerofthecorrespondingpaymentor,incaseofrejectionorno
responsefromthelandowner,uponthedepositwithanaccessiblebankdesignatedbytheDAR
ofthecompensationincashorinLBPbondsinaccordancewiththisAct,theDARshalltake
immediatepossessionofthelandandshallrequesttheproperRegisterofDeedstoissuea
TransferCertificateofTitle(TCT)inthenameoftheRepublicofthePhilippines.TheDARshall
thereafterproceedwiththeredistributionofthelandtothequalifiedbeneficiaries.

(f)Anypartywhodisagreeswiththedecisionmaybringthemattertothecourtofproper
jurisdictionforfinaldeterminationofjustcompensation.

CHAPTERVI
Compensation

SECTION17.DeterminationofJustCompensation.Indeterminingjustcompensation,the
costofacquisitionoftheland,thecurrentvalueofthelikeproperties,itsnature,actualuseand
income,theswornvaluationbytheowner,thetaxdeclarations,andtheassessmentmadeby
governmentassessorsshallbeconsidered.Thesocialandeconomicbenefitscontributedby
thefarmersandthefarmworkersandbytheGovernmenttothepropertyaswellasthe
nonpaymentoftaxesorloanssecuredfromanygovernmentfinancinginstitutiononthesaid
landshallbeconsideredasadditionalfactorstodetermineitsvaluation.
SECTION18.ValuationandModeofCompensation.TheLBPshallcompensatethe
landownerinsuchamountsasmaybeagreeduponbythelandownerandtheDARandthe
LBP,inaccordancewiththecriteriaprovidedforinSections16and17,andotherpertinent
provisionshereof,orasmaybefinallydeterminedbythecourt,asthejustcompensationforthe
land.
Thecompensationshallbepaidononeofthefollowingmodes,attheoptionofthelandowner:
(1)Cashpayment,underthefollowingtermsandconditions
(a)ForlandsaboveTwentyfivepercentfifty(50)hectares,insofar(25%)cash,thebalanceto
astheexcesshectarageisbepaidingovernmentconcerned.financialinstrumentsnegotiableat
anytime.
(b)ForlandsaboveThirtypercent(30%)cash,twentyfour(24)hectaresthebalancetobe
paidinanduptofifty(50)hectares.governmentfinancialinstrumentsnegotiableatanytime.
(c)ForlandstwentyfourThirtyfivepercent(35%)(24)hectaresandbelow.cash,the
balancetobepaidingovernmentfinancialinstrumentsnegotiableatanytime.
(2)Sharesofstockingovernmentownedorcontrolledcorporations,LBPpreferredshares,
physicalassetsorotherqualifiedinvestmentsinaccordancewithguidelinessetbythePARC
(3)Taxcreditswhichcanbeusedagainstanytaxliability
(4)LBPbonds,whichshallhavethefollowingfeatures:
(a)Marketinterestratesalignedwith91daytreasurybillrates.Tenpercent(10%)oftheface
valueofthebondsshallmatureeveryyearfromthedateofissuanceuntilthetenth(10th)year:
Provided,Thatshouldthelandownerchoosetoforegothecashportion,whetherinfullorinpart,
heshallbepaidcorrespondinglyinLBPbonds
(b)Transferabilityandnegotiability.SuchLBPbondsmaybeusedbythelandowner,his
successorsininterestorhisassigns,uptotheamountoftheirfacevalue,foranyofthe
following:
(i)Acquisitionoflandorotherrealpropertiesofthegovernment,includingassetsunderthe
AssetPrivatizationProgramandotherassetsforeclosedbygovernmentfinancialinstitutionsin
thesameprovinceorregionwherethelandsforwhichthebondswerepaidaresituated
(ii)Acquisitionofsharesofstockofgovernmentownedorcontrolledcorporationsorsharesof
stocksownedbythegovernmentinprivatecorporations
(iii)Substitutionforsuretyorbailbondsfortheprovisionalreleaseofaccusedpersons,or
performancebonds
(iv)Securityforloanswithanygovernmentfinancialinstitution,providedtheproceedsofthe
loansshallbeinvestedinaneconomicenterprise,preferablyinasmallandmediumscale
industry,inthesameprovinceorregionasthelandforwhichthebondsarepaid
(v)PaymentforvarioustaxesandfeestogovernmentProvided,Thattheuseofthesebondsfor
thesepurposeswillbelimitedtoacertainpercentageoftheoutstandingbalanceofthefinancial
instruments:Provided,further,ThatthePARCshalldeterminethepercentagementionedabove
(vi)Paymentfortuitionfeesoftheimmediatefamilyoftheoriginalbondholderingovernment
universities,colleges,tradeschools,andotherinstitutions
(vii)Paymentforfeesoftheimmediatefamilyoftheoriginalbondholderingovernmenthospitals
and
(viii)SuchotherusesasthePARCmayfromtimetotimeallow.
Incaseofextraordinaryinflation,thePARCshalltakeappropriatemeasurestoprotectthe
economy.
SECTION19.IncentivesforVoluntaryOffersforSales.Landowners,otherthanbanksand
otherfinancialinstitutions,whovoluntarilyoffertheirlandsforsaleshallbeentitledtoan
additionalfivepercent(5%)cashpayment.

SECTION20.VoluntaryLandTransfer.Landownersofagriculturallandssubjecttoacquisition
underthisActmayenterintoavoluntaryarrangementfordirecttransferoftheirlandstoqualified
beneficiariessubjecttothefollowingguidelines:

(a)AllnoticesforvoluntarylandtransfermustbesubmittedtotheDARwithinthefirstyearofthe
implementationoftheCARP.Negotiationsbetweenthelandownersandqualifiedbeneficiaries
coveringanyvoluntarylandtransferwhichremainunresolvedafterone(1)yearshallnotbe
recognizedandsuchlandshallinsteadbeacquiredbythegovernmentandtransferredpursuant
tothisAct.

(b)Thetermsandconditionsofsuchtransfershallnotbelessfavorabletothetransfereethan
thoseofthegovernment'sstandingoffertopurchasefromthelandownerandtoreselltothe
beneficiaries,ifsuchoffershavebeenmadeandarefullyknowntobothparties.

(c)Thevoluntaryagreementshallincludesanctionsfornoncompliancebyeitherpartyandshall
bedulyrecordedanditsimplementationmonitoredbytheDAR.

SECTION21.PaymentofCompensationbyBeneficiariesUnderVoluntaryLandTransfer.
Directpaymentsincashorinkindmaybebythefarmerbeneficiarytothelandownerunder
termstobemutuallyagreeduponbybothparties,whichshallbebindinguponthem,upon
registrationwiththeapprovalbytheDAR.Saidapprovalshallbeconsideredgiven,unlessnotice
ofdisapprovalisreceivedbythefarmerbeneficiarywithinthirty(30)daysfromthedateof
registration.Intheeventtheycannotagreeonthepriceofland,theprocedureforcompulsory
acquisitionasprovidedinSection16shallapply.TheLBPshallextendfinancingtothe
beneficiariesforpurposesofacquiringtheland.

CHAPTERVII
LandRedistribution

SECTION22.QualifiedBeneficiaries.ThelandscoveredbytheCARPshallbedistributedas
muchaspossibletolandlessresidentsofthesamebarangay,orintheabsencethereof,
landlessresidentsofthesamemunicipalityinthefollowingorderofpriority:(a)agricultural
lesseesandsharetenants(b)regularfarmworkers(c)seasonalfarmworkers(d)other
farmworkers(e)actualtillersoroccupantsofpubliclands(f)collectivesorcooperativesofthe
abovebeneficiariesand(g)othersdirectlyworkingontheland.Provided,however,Thatthe
childrenoflandownerswhoarequalifiedunderSection6ofthisActshallbegivenpreferencein
thedistributionofthelandoftheirparents:andProvided,further,Thatactualtenanttillersinthe
landholdingsshallnotbeejectedorremovedtherefrom.BeneficiariesunderPresidential
DecreeNo.27whohaveculpablysold,disposedof,orabandonedtheirlandaredisqualifiedto
becomebeneficiariesunderthisProgram.Abasicqualificationofabeneficiaryshallbehis
willingness,aptitude,andabilitytocultivateandmakethelandasproductiveaspossible.The
DARshalladoptasystemofmonitoringtherecordorperformanceofeachbeneficiary,sothat
anybeneficiaryguiltyofnegligenceormisuseofthelandoranysupportextendedtohimshall
forfeithisrighttocontinueassuchbeneficiary.TheDARshallsubmitperiodicreportsonthe
performanceofthebeneficiariestothePARC.If,duetothelandowner'sretentionrightsortothe
numberoftenants,lessees,orworkersontheland,thereisnotenoughlandtoaccommodate
anyorsomeofthem,theymaybegrantedownershipofotherlandsavailablefordistribution
underthisAct,attheoptionofthebeneficiaries.Farmersalreadyinplaceandthosenot
accommodatedinthedistributionofprivatelyownedlandswillbegivenpreferentialrightsinthe
distributionoflandsfromthepublicdomain.

SECTION23.DistributionLimit.Noqualifiedbeneficiarymayownmorethanthree(3)
hectaresofagriculturalland.

SECTION24.AwardtoBeneficiaries.Therightsandresponsibilitiesofthebeneficiaryshall
commencefromthetimetheDARmakesanawardofthelandtohim,whichawardshallbe
completedwithinonehundredeighty(180)daysfromthetimetheDARtakesactualpossession
oftheland.OwnershipofthebeneficiaryshallbeevidencedbyaCertificateofLandOwnership
Award,whichshallcontaintherestrictionsandconditionsprovidedforinthisAct,andshallbe
recordedintheRegisterofDeedsconcernedandannotatedontheCertificateofTitle.

SECTION25.AwardCeilingsforBeneficiaries.Beneficiariesshallbeawardedanareanot
exceedingthree(3)hectareswhichmaycoveracontiguoustractoflandorseveralparcelsof
landcumulateduptotheprescribedawardlimits.ForpurposesofthisAct,alandless
beneficiaryisonewhoownslessthanthree(3)hectaresofagriculturalland.Thebeneficiaries
mayoptforcollectiveownership,suchascoownershiporfarmerscooperativeorsomeother
formofcollectiveorganization:Provided,Thatthetotalareathatmaybeawardedshallnot
exceedthetotalnumberofcoownersormemberofthecooperativeorcollectiveorganization
multipliedbytheawardlimitaboveprescribed,exceptinmeritoriouscasesasdeterminedby
thePARC.Titletothepropertyshallbeissuedinthenameofthecoownersorthecooperative
orcollectiveorganizationasthecasemaybe.

SECTION26.PaymentbyBeneficiaries.LandsawardedpursuanttothisActshallbepaidfor
bythebeneficiariestotheLBPinthirty(30)annualamortizationsatsixpercent(6%)interestper
annum.Thepaymentsforthefirstthree(3)yearsaftertheawardmaybeatreducedamounts
asestablishedbythePARC:Provided,Thatthefirstfive(5)annualpaymentsmaynotbemore
thanfivepercent(5%)ofthevalueoftheannualgrossproductionasestablishedbytheDAR.
Shouldthescheduledannualpaymentsafterthefifthyearexceedtenpercent(10%)ofthe
annualgrossproductionandthefailuretoproduceaccordinglyisnotduetothebeneficiary's
fault,theLBPmayreducetheinterestrateorreducetheprincipalobligationstomakethe
repaymentaffordable.TheLBPshallhavealienbywayofmortgageonthelandawardedtothe
beneficiaryandthismortgagemaybeforeclosedbytheLBPfornonpaymentofanaggregate
ofthree(3)annualamortizations.TheLBPshalladvisetheDARofsuchproceedingsandthe
lattershallsubsequentlyawardtheforfeitedlandholdingstootherqualifiedbeneficiaries.A
beneficiarywhoseland,asprovidedherein,hasbeenforeclosedshallthereafterbepermanently
disqualifiedfrombecomingabeneficiaryunderthisAct.cd

SECTION27.TransferabilityofAwardedLands.Landsacquiredbybeneficiariesunderthis
Actmaynotbesold,transferredorconveyedexceptthroughhereditarysuccession,ortothe
government,ortheLBP,ortootherqualifiedbeneficiariesforaperiodoften(10)years:
Provided,however,Thatthechildrenorthespouseofthetransferorshallhavearightto
repurchasethelandfromthegovernmentorLBPwithinaperiodoftwo(2)years.Duenoticeof
theavailabilityofthelandshallbegivenbytheLBPtotheBarangayAgrarianReformCommittee
(BARC)ofthebarangaywherethelandissituated.TheProvincialAgrarianReform
CoordinatingCommittee(PARCCOM)ashereinprovided,shall,inturn,begivenduenotice
thereofbytheBARC.Ifthelandhasnotyetbeenfullypaidbythebeneficiary,therightstothe
landmaybetransferredorconveyed,withpriorapprovaloftheDAR,toanyheirofthe
beneficiaryortoanyotherbeneficiarywho,asaconditionforsuchtransferorconveyance,shall
cultivatethelandhimself.Failingcomplianceherewith,thelandshallbetransferredtotheLBP
whichshallgiveduenoticeoftheavailabilityofthelandinthemannerspecifiedinthe
immediatelyprecedingparagraph.IntheeventofsuchtransfertotheLBP,thelattershall
compensatethebeneficiaryinonelumpsumfortheamountsthelatterhasalreadypaid,
togetherwiththevalueofimprovementshehasmadeontheland.

SECTION28.StandingCropsattheTimeofAcquisition.Thelandownershallretainhisshare
ofanystandingcropsunharvestedatthetimetheDARshalltakepossessionofthelandunder
Section16oftheAct,andshallbegivenareasonabletimetoharvestthesame.

CHAPTERVIII
CorporateFarms

SECTION29.FarmsOwnedorOperatedbyCorporationsorOtherBusinessAssociations.In
thecaseoffarmsownedoroperatedbycorporationsorotherbusinessassociations,the
followingrulesshallbeobservedbythePARC:Ingeneral,landsshallbedistributeddirectlyto
theindividualworkerbeneficiaries.Incaseitisnoteconomicallyfeasibleandsoundtodividethe
land,thenitshallbeownedcollectivelybytheworkers'cooperativeorassociationwhichwilldeal
withthecorporationorbusinessassociation.Untilanewagreementisenteredintobyand
betweentheworkers'cooperativeorassociationandthecorporationorbusinessassociation,
anyagreementexistingatthetimethisActtakeseffectbetweentheformerandtheprevious
landownershallberespectedbyboththeworkers'cooperativeorassociationandthe
corporationorbusinessassociation.
SECTION30.HomelotsandFarmlotsforMembersofCooperatives.Theindividualmembers
ofthecooperativesorcorporationsmentionedintheprecedingsectionshallbeprovidedwith
homelotsandsmallfarmlotsfortheirfamilyuse,tobetakenfromthelandownedbythe
cooperativeorcorporation.

SECTION31.CorporateLandowners.Corporatelandownersmayvoluntarilytransfer
ownershipovertheiragriculturallandholdingstotheRepublicofthePhilippinespursuantto
Section20hereofortoqualifiedbeneficiaries,undersuchtermsandconditions,consistentwith
thisAct,astheymayagreeupon,subjecttoconfirmationbytheDAR.Uponcertificationbythe
DAR,corporationsowningagriculturallandsmaygivetheirqualifiedbeneficiariestherightto
purchasesuchproportionofthecapitalstockofthecorporationthattheagriculturalland,actually
devotedtoagriculturalactivities,bearsinrelationtothecompany'stotalassets,undersuch
termsandconditionsasmaybeagreeduponbythem.Innocaseshallthecompensation
receivedbytheworkersatthetimethesharesofstocksaredistributedbereduced.Thesame
principleshallbeappliedtoassociations,withrespecttotheirequityorparticipation.
Corporationsorassociationswhichvoluntarilydivestaproportionoftheircapitalstock,equityor
participationinfavoroftheirworkersorotherqualifiedbeneficiariesunderthissectionshallbe
deemedtohavecompliedwiththeprovisionsoftheAct:Provided,Thatthefollowingconditions
arecompliedwith:a)Inordertosafeguardtherightofbeneficiarieswhoownsharesofstocksto
dividendsandotherfinancialbenefits,thebooksofthecorporationorassociationshallbe
subjecttoperiodicauditbycertifiedpublicaccountantschosenbythebeneficiariesb)
Irrespectiveofthevalueoftheirequityinthecorporationorassociation,thebeneficiariesshallbe
assuredofatleastone(1)representativeintheboardofdirectors,orinamanagementor
executivecommittee,ifoneexists,ofthecorporationorassociationandc)Anysharesacquired
bysuchworkersandbeneficiariesshallhavethesamerightsandfeaturesasallothershares.
d)Anytransferofsharesofstocksbytheoriginalbeneficiariesshallbevoidabinitiounlesssaid
transactionisinfavorofaqualifiedandregisteredbeneficiarywithinthesamecorporation.If
withintwo(2)yearsfromtheapprovalofthisAct,thelandorstocktransferenvisionedaboveis
notmadeorrealizedortheplanforsuchstockdistributionapprovedbythePARCwithinthe
sameperiod,theagriculturallandofthecorporateownersorcorporationshallbesubjecttothe
compulsorycoverageofthisAct.acd

SECTION32.ProductionSharing.Pendingfinallandtransfer,individualsorentitiesowning,or
operatingunderleaseormanagementcontract,agriculturallandsareherebymandatedto
executeaproductionsharingplanwiththeirfarmworkersorfarmworkers'reorganization,ifany,
wherebythreepercent(3%)ofthegrosssalesfromtheproductionofsuchlandsaredistributed
withinsixty(60)daysoftheendofthefiscalyearascompensationtoregularandother
farmworkersinsuchlandsoverandabovethecompensationtheycurrentlyreceive:Provided,
Thattheseindividualsorentitiesrealizegrosssalesinexcessoffivemillionpesosperannum
unlesstheDAR,uponproperapplication,determinesalowerceiling.Intheeventthatthe
individualorentityrealizesaprofit,anadditionaltenpercent(10%)ofthenetprofitaftertaxshall
bedistributedtosaidregularandotherfarmworkerswithinninety(90)daysoftheendofthe
fiscalyear.Toforestallanydisruptioninthenormaloperationoflandstobeturnedovertothe
farmworkerbeneficiariesmentionedabove,atransitoryperiod,thelengthofwhichshallbe
determinedbytheDAR,shallbeestablished.Duringthistransitoryperiod,atleastonepercent
(1%)ofthegrosssalesoftheentityshallbedistributedtothemanagerial,supervisoryand
technicalgroupinplaceatthetimeoftheeffectivityofthisAct,ascompensationforsuch
transitorymanagerialandtechnicalfunctionsasitwillperform,pursuanttoanagreementthat
thefarmworkerbeneficiariesandthemanagerial,supervisoryandtechnicalgroupmay
conclude,subjecttotheapprovaloftheDAR.

SECTION33.PaymentofSharesofCooperativeorAssociation.Sharesofacooperativeor
associationacquiredbyfarmersbeneficiariesorworkersbeneficiariesshallbefullypaidforinan
amountcorrespondingtothevaluationasdeterminedintheimmediatelysucceedingsection.
ThelandownerandtheLBPshallassistthefarmersbeneficiariesandworkersbeneficiariesin
thepaymentforsaidsharesbyprovidingcreditfinancing.

SECTION34.ValuationofLands.Avaluationschemeforthelandshallbeformulatedbythe
PARC,takingintoaccountthefactorsenumeratedinSection17,inadditiontotheneedto
stimulatethegrowthofcooperativesandtheobjectiveoffosteringresponsibleparticipationofthe
workersbeneficiariesinthecreationofwealth.Inthedeterminationofpricethatisjustnotonlyto
theindividualsbuttosocietyaswell,thePARCshallconsultcloselywiththelandownerandthe
workersbeneficiaries.Incaseofdisagreement,thepriceasdeterminedbythePARC,if
acceptedbytheworkersbeneficiaries,shallbefollowed,withoutprejudicetothelandowner's
righttopetitiontheSpecialAgrarianCourttoresolvetheissueofvaluation.

CHAPTERIX
SupportServices

SECTION35.CreationofSupportServicesOffice.ThereisherebycreatedtheOfficeof
SupportServicesundertheDARtobeheadedbyanUndersecretary.TheOfficeshallprovide
generalsupportandcoordinativeservicesintheimplementationoftheprogramparticularlyin
carryingouttheprovisionsofthefollowingservicestofarmerbeneficiariesandaffected
landowners:1)Irrigationfacilities,especiallysecondcropordryseasonirrigationfacilities2)
Infrastructuredevelopmentandpublicworksprojectsinareasandsettlementsthatcomeunder
agrarianreform,andforthispurpose,thepreparationofthephysicaldevelopmentplanofsuch
settlementsprovidingsuitablebarangaysites,potablewaterandpowerresources,irrigation
systemsandotherfacilitiesforasoundagriculturaldevelopmentplan3)Governmentsubsidies
fortheuseofirrigationfacilities4)Pricesupportandguaranteeforallagriculturalproduce5)
Extendingtosmalllandowners,farmers'organizationsthenecessarycredit,likeconcessional
andcollateralfreeloans,foragroindustrializationbasedonsocialcollateralsliketheguarantees
offarmers'organization:6)Promoting,developingandextendingfinancialassistanceto
smallandmediumscaleindustriesinagrarianreformareas7)Assigningsufficientnumbersof
agriculturalextensionworkerstofarmers'organizations8)Undertakeresearch,development
anddisseminationofinformationonagrarianreformandlowcostandecologicallysoundfarm
inputsandtechnologiestominimizerelianceonexpensiveandimportedagriculturalinputs9)
Developmentofcooperativemanagementskillsthroughintensivetraining10)Assistanceinthe
identificationofreadymarketsforagriculturalproduceandtraininginothervariousprospectsof
marketingandcdtai11)Administrationoperationmanagementandfundingofsupportservices,
programsandprojectsincludingpilotprojectsandmodelsrelatedtoagrarianreformas
developedbytheDAR.

SECTION36.FundingforSupportServices.Inordertocovertheexpensesandcostof
supportservices,atleasttwentyfivepercent(25%)ofallappropriationsforagrarianreformshall
beimmediatelysetasideandmadeavailableforthispurpose.Inaddition,theDARshallbe
authorizedtopackageproposalsandreceivegrants,aidandotherformsoffinancialassistance
fromanysource.

SECTION37.SupportServicestotheBeneficiaries.ThePARCshallensurethatsupport
servicestofarmersbeneficiariesareprovided,suchas:(a)Landsurveysandtitling(b)
Liberalizedtermsoncreditfacilitiesandproductionloans(c)Extensionservicesbywayof
planting,cropping,productionandpostharvesttechnologytransfer,aswellasmarketingand
managementassistanceandsupporttocooperativesandfarmers'organizations(d)
Infrastructuresuchasaccesstrails,minidams,publicutilities,marketingandstoragefacilities
and(e)Research,productionanduseoforganicfertilizersandotherlocalsubstances
necessaryinfarmingandcultivation.ThePARCshallformulatepoliciestoensurethatsupport
servicestofarmerbeneficiariesshallbeprovidedatallstagesoflandreform.TheBagong
KilusangKabuhayansaKaunlaran(BKKK)Secretariatshallbetransferredandattachedtothe
LBP,foritssupervisionincludingallitsapplicableandexistingfunds,personnel,properties,
equipmentandrecords.Misuseordiversionofthefinancialandsupportserviceshereinprovided
shallresultinsanctionsagainstthebeneficiaryguiltythereof,includingtheforfeitureoftheland
transferredtohimorlessersanctionsasmaybeprovidedbythePARC,withoutprejudiceto
criminalprosecution.

SECTION38.SupportServicestoLandowners.ThePARCwiththeassistanceofsuchother
governmentagenciesandinstrumentalitiesasitmaydirect,shallprovidelandownersaffectedby
theCARPandprioragrarianreformprogramswiththefollowingservices:(a)Investment
informationfinancialandcounselingassistance(b)Facilities,programsandschemesforthe
conversionorexchangeofbondsissuedforpaymentofthelandsacquiredwithstocksand
bondsissuedbytheNationalGovernment,theCentralBankandothergovernmentinstitutions
andinstrumentalities(c)MarketingofLBPbonds,aswellaspromotingthemarketabilityofsaid
bondsintraditionalandnontraditionalfinancialmarketsandstockexchangesand(d)Other
servicesdesignedtoutilizeproductivelytheproceedsofthesaleofsuchlandsforrural
industrialization.Alandownerwhoinvestsinruralbasedindustriesshallbeentitledtothe
incentivesgrantedtoaregisteredenterpriseengagedinapioneerorpreferredareaof
investmentasprovidedforintheOmnibusInvestmentCodeof1987,ortosuchotherincentives
asthePARC,theLBP,orothergovernmentfinancialinstitutionsmayprovide.TheLBPshall
redeemalandowner'sLBPbondsatfacevalue,providedthattheproceedsthereofshallbe
investedinaBOIregisteredcompanyorinanyagribusinessoragroindustrialenterpriseinthe
regionwherethelandownerhaspreviouslymadeinvestments,totheextentofthirtypercent
(30%)ofthefacevalueofsaidLBPbonds,subjecttoguidelinesthatshallbeissuedbytheLBP.

SECTION39.LandConsolidation.TheDARshallcarryoutlandconsolidationprojectsto
promoteequaldistributionoflandholdings,toprovidetheneededinfrastructuresinagriculture,
andtoconservesoilfertilityandpreventerosion.

CHAPTERX
SpecialAreasofConcern

SECTION40.SpecialAreasofConcern.AsanintegralpartoftheComprehensiveAgrarian
ReformProgram,thefollowingprinciplesinthesespecialareasofconcernshallbeobserved:
(1)SubsistenceFishing.Smallfisherfolk,includingseaweedfarmers,shallbeassuredof
greateraccesstotheutilizationofwaterresources.
(2)LoggingandMiningConcessions.Subjecttotherequirementofabalancedecologyand
conservationofwaterresources,suitableareas,asdeterminedbytheDepartmentof
EnvironmentandNaturalResources(DENR),inlogging,miningandpastureareas,shallbe
openedupforagrariansettlementswhosebeneficiariesshallberequiredtoundertake
reforestationandconservationproductionmethods.Subjecttoexistinglaws,rulesand
regulations,settlersandmembersoftribalcommunitiesshallbeallowedtoenjoyandexploitthe
productsoftheforestotherthantimerwithintheloggingconcessions.
(3)SparselyOccupiedPublicAgriculturalLands.Sparselyoccupiedagriculturallandsofthe
publicdomainshallbesurveyed,proclaimedanddevelopedasfarmsettlementsforqualified
landlesspeoplebasedonanorganizedprogramtoensuretheirorderlyandearlydevelopment.
cdaAgriculturallandallocationsshallbemadeforidealfamilysizefarmsasdeterminedbythe
PARC.Pioneersandothersettlersshallbetreatedequallyineveryrespect.Subjecttotheprior
rightsofqualifiedbeneficiaries,uncultivatedlandsofthepublicdomainshallbemadeavailable
onaleasebasistointerestedandqualifiedparties.Partieswhowillengagedinthedevelopment
ofcapitalintensive,traditionalorpioneeringcropsshallbegivenpriority.Theleaseperiod,which
shallnotbemorethanatotaloffifty(50)years,shallbeproportionatetotheamountof
investmentandproductiongoalsofthelessee.Asystemofevaluationandauditshallbe
instituted.
(4)Idle,Abandoned,ForeclosedandSequesteredLands.Idle,abandoned,foreclosedand
sequesteredlandsshallbeplannedfordistributionashomelotsandfamilysizefarmlotsto
actualoccupants.Iflandareapermits,otherlandlessfamiliesshallbeaccommodatedinthese
lands.
(5)RuralWomen.Allqualifiedwomenmembersoftheagriculturallaborforcemustbe
guaranteedandassuredequalrighttoownershipoftheland,equalsharesofthefarm's
produce,andrepresentationinadvisoryorappropriatedecisionmakingbodies.
(6)VeteransandRetirees.InaccordancewithSection7ofArticleXVIoftheConstitution,
landlesswarveteransandveteransofmilitarycampaigns,theirsurvivingspouseandorphans,
retireesoftheArmedForcesofthePhilippines(AFP)andtheIntegratedNationalPolice(INP),
returnees,surrenderees,andsimilarbeneficiariesshallbegivendueconsiderationinthe
dispositionofagriculturallandsofthepublicdomain.
(7)AgricultureGraduates.Graduatesofagriculturalschoolswhoarelandlessshallbe
assistedbythegovernment,throughtheDAR,intheirdesiretoownandtillagriculturallands.

CHAPTERXI
ProgramImplementation

SECTION41.ThePresidentialAgrarianReformCouncil.ThePresidentialAgrarianReform
Council(PARC)shallbecomposedofthePresidentofthePhilippinesasChairman,the
SecretaryofAgrarianReformasViceChairmanandthefollowingasmembersSecretariesof
theDepartmentsofAgricultureEnvironmentandNaturalResourcesBudgetandManagement
LocalGovernment:PublicWorksandHighwaysTradeandIndustryFinanceLaborand
EmploymentDirectorGeneraloftheNationalEconomicandDevelopmentAuthorityPresident,
LandBankofthePhilippinesAdministrator,NationalIrrigationAdministrationandthree(3)
representativesofaffectedlandownerstorepresentLuzon,VisayasandMindanaosix(6)
representativesofagrarianreformbeneficiaries,two(2)eachfromLuzon,Visayasand
Mindanao,providedthatoneofthemshallbefromtheculturalcommunities.

SECTION42.ExecutiveCommittee.ThereshallbeanExecutiveCommittee(EXCOM)ofthe
PARCcomposedoftheSecretaryoftheDARasChairman,andsuchothermembersasthe
Presidentmaydesignate,takingintoaccountArticleXIII,Section5oftheConstitution.Unless
otherwisedirectedbyPARC,theEXCOMmaymeetanddecideonanyandallmattersin
betweenmeetingsofthePARC:Provided,however,Thatitsdecisionsmustbereportedtothe
PARCimmediatelyandnotlaterthanthenextmeeting.

SECTION43.Secretariat.APARCSecretariatisherebyestablishedtoprovidegeneral
supportandcoordinativeservicessuchasinteragencylinkagesprogramandprojectappraisal
andevaluationandgeneraloperationsmonitoringforthePARC.TheSecretariatshallbeheaded
bytheSecretaryofAgrarianReformwhoshallbeassistedbyanUndersecretaryandsupported
byastaffwhosecompositionshallbedeterminedbythePARCExecutiveCommitteeand
whosecompensationshallbechargeableagainsttheAgrarianReformFund.Allofficersand
employeesoftheSecretariatshallbeappointedbytheSecretaryofAgrarianReform.

SECTION44.ProvincialAgrarianReformCoordinatingCommittee(PARCCOM).AProvincial
AgrarianReformCoordinatingCommittee(PARCCOM)isherebycreatedineachprovince,
composedofaChairman,whoshallbeappointedbythePresidentupontherecommendationof
theEXCOM,theProvincialAgrarianReformOfficerasExecutiveOfficer,andonerepresentative
eachfromtheDepartmentsofAgriculture,andofEnvironmentandNaturalResourcesandfrom
theLBP,onerepresentativeeachfromexistingfarmers'organizations,agriculturalcooperatives
andnongovernmentalorganizationsintheprovincetworepresentativesfromlandowners,at
leastoneofwhomshallbeaproducerrepresentingtheprincipalcropoftheprovince,andtwo
representativesfromfarmerandfarmworkerbeneficiaries,atleastoneofwhomshallbea
farmerorfarmworkerrepresentingtheprincipalcropoftheprovince,asmembers:Provided,
Thatinareaswherethereareculturalcommunities,thelattershalllikewisehaveone
representative.ThePARCCOMshallcoordinateandmonitortheimplementationoftheCARPin
theprovince.ItshallprovideinformationontheprovisionsoftheCARP,guidelinesissuedbythe
PARCandontheprogressoftheCARPintheprovince.

SECTION45.ProvincebyProvinceImplementation.ThePARCshallprovidetheguidelines
foraprovincebyprovinceimplementationoftheCARP.Thetenyearprogramofdistributionof
publicandprivatelandsineachprovinceshallbeadjustedfromyearbytheprovince's
PARCCOMinaccordancewiththelevelofoperationspreviouslyestablishedbythePARC,in
everycaseensuringthatsupportservicesareavailableorhavebeenprogrammedbeforeactual
distributioniseffected.

SECTION46.BarangayAgrarianReformCommittee(BARC).Unlessotherwiseprovidedin
thisAct,theprovisionsofExecutiveOrderNo.229regardingtheorganizationoftheBarangay
AgrarianReformCommittee(BARC)shallbeineffect.

SECTION47.FunctionsoftheBARC.InadditiontothoseprovidedinExecutiveOrderNo.
229,theBARCshallhavethefollowingfunctions:(a)Mediateandconciliatebetweenparties
involvedinanagrariandisputeincludingmattersrelatedtotenurialandfinancialarrangements
acd(b)Assistintheidentificationofqualifiedbeneficiariesandlandownerswithinthebarangay
(c)Attesttotheaccuracyoftheinitialparcellarymappingofthebeneficiary'stillage(d)Assist
qualifiedbeneficiariesinobtainingcreditfromlendinginstitutions(e)Assistintheinitial
determinationofthevalueoftheland(f)AssisttheDARrepresentativesinthepreparationof
periodicreportsontheCARPimplementationforsubmissiontotheDAR(g)Coordinatethe
deliveryofsupportservicestobeneficiariesand(h)Performsuchotherfunctionsasmaybe
assignedbytheDAR.(2)TheBARCshallendeavortomediate,conciliateandsettleagrarian
disputeslodgedbeforeitwithinthirty(30)daysfromitstakingcognizancethereof.Ifafterthe
lapseofthethirtydayperiod,itisunabletosettlethedispute,itshallissueacertificateofits
proceedingsandshallfurnishacopythereofuponthepartieswithinseven(7)daysafterthe
expirationofthethirtydayperiod.

SECTION48.LegalAssistance.TheBARCoranymemberthereofmay,whenever
necessaryintheexerciseofanyofitsfunctionshereunder,seekthelegalassistanceoftheDAR
andtheprovincial,city,ormunicipalgovernment.

SECTION49.RulesandRegulations.ThePARCandtheDARshallhavethepowertoissue
rulesandregulations,whethersubstantiveorprocedural,tocarryouttheobjectsandpurposes
ofthisAct.Saidrulesshalltakeeffectten(10)daysafterpublicationintwo(2)national
newspapersofgeneralcirculation.

CHAPTERXII
AdministrativeAdjudication

SECTION50.QuasiJudicialPowersoftheDAR.TheDARisherebyvestedwiththeprimary
jurisdictiontodetermineandadjudicateagrarianreformmattersandshallhaveexclusiveoriginal
jurisdictionoverallmattersinvolvingtheimplementationofagrarianreformexceptthosefalling
undertheexclusivejurisdictionoftheDepartmentofAgriculture(DA)andtheDepartmentof
EnvironmentandNaturalResources(DENR).Itshallnotbeboundbytechnicalrulesof
procedureandevidencebutshallproceedtohearanddecideallcases,disputesor
controversiesinamostexpeditiousmanner,employingallreasonablemeanstoascertainthe
factsofeverycaseinaccordancewithjusticeandequityandthemeritsofthecase.Towardthis
end,itshalladoptauniformruleofproceduretoachieveajust,expeditiousandinexpensive
determinationforeveryactionorproceedingbeforeit.Itshallhavethepowertosummon
witnesses,administeroaths,taketestimony,requiresubmissionofreports,compelthe
productionofbooksanddocumentsandanswerstointerrogatoriesandissuesubpoena,and
subpoenaducestecum,andenforceitswritsthroughsheriffsorotherdulydeputizedofficers.It
shalllikewisehavethepowertopunishdirectandindirectcontemptsinthesamemannerand
subjecttothesamepenaltiesasprovidedintheRulesofCourt.Responsiblefarmerleaders
shallbeallowedtorepresentthemselves,theirfellowfarmers,ortheirorganizationsinany
proceedingsbeforetheDAR:Provided,however,Thatwhentherearetwoormore
representativesforanyindividualorgroup,therepresentativesshouldchooseonlyoneamong
themselvestorepresentsuchpartyorgroupbeforeanyDARproceedings.Notwithstandingan
appealtotheCourtofAppeals,thedecisionoftheDARshallbeimmediatelyexecutory.

SECTION51.FinalityofDetermination.Anycaseorcontroversybeforeitshallbedecided
withinthirty(30)daysafteritissubmittedforresolution.Onlyone(1)motionforreconsideration
shallbeallowed.Anyorder,rulingordecisionshallbefinalafterthelapseoffifteen(15)days
fromreceiptofacopythereof.

SECTION52.FrivolousAppeals.Todiscouragefrivolousordilatoryappealsfromthe
decisionsorordersonthelocalorprovinciallevels,theDARmayimposereasonablepenalties,
includingbutnotlimitedtofinesorcensuresuponerringparties.

SECTION53.CertificationoftheBARC.TheDARshallnottakecognizanceofanyagrarian
disputeorcontroversyunlessacertificationfromtheBARCthatthedisputehasbeensubmitted
toitformediationandconciliationwithoutanysuccessofsettlementispresented:Provided,
however,ThatifnocertificationisissuedbytheBARCwithinthirty(30)daysafteramatteror
issueissubmittedtoitformediationorconciliationthecaseordisputemaybebroughtbefore
thePARC.

CHAPTERXIII
JudicialReview

SECTION54.Certiorari.Anydecision,order,awardorrulingoftheDARonanyagrarian
disputeoronanymatterpertainingtotheapplication,implementation,enforcement,or
interpretationofthisActandotherpertinentlawsonagrarianreformmaybebroughttotheCourt
ofAppealsbycertiorariexceptasotherwiseprovidedinthisActwithinfifteen(15)daysfromthe
receiptofacopythereof.ThefindingsoffactoftheDARshallbefinalandconclusiveifbasedon
substantialevidence.

SECTION55.NoRestrainingOrderorPreliminaryInjunction.NocourtinthePhilippinesshall
havejurisdictiontoissueanyrestrainingorderorwritofpreliminaryinjunctionagainstthePARC
oranyofitsdulyauthorizedordesignatedagenciesinanycase,disputeorcontroversyarising
from,necessaryto,orinconnectionwiththeapplication,implementation,enforcement,or
interpretationofthisActandotherpertinentlawsonagrarianreform.

SECTION56.SpecialAgrarianCourt.TheSupremeCourtshalldesignateatleastone(1)
branchoftheRegionalTrialCourt(RTC)withineachprovincetoactasaSpecialAgrarian
Court.TheSupremeCourtmaydesignatemorebranchestoconstitutesuchadditionalSpecial
AgrarianCourtsasmaybenecessarytocopewiththenumberofagrariancasesineach
province.Inthedesignation,theSupremeCourtshallgivepreferencetotheRegionalTrial
Courtswhichhavebeenassignedtohandleagrariancasesorwhosepresidingjudgeswere
formerjudgesofthedefunctCourtofAgrarianRelations.TheRegionalTrialCourt(RTC)judges
assignedtosaidcourtsshallexercisesaidspecialjurisdictioninadditiont
otheregularjurisdictionoftheirrespectivecourts.TheSpecialAgrarianCourtsshallhavethe
powersandprerogativesinherentinorbelongingtotheRegionalTrialCourts.

SECTION57.SpecialJurisdiction.TheSpecialAgrarianCourtsshallhaveoriginaland
exclusivejurisdictionoverallpetitionsforthedeterminationofjustcompensationtolandowners,
andtheprosecutionofallcriminaloffensesunderthisAct.TheRulesofCourtshallapplytoall
proceedingsbeforetheSpecialAgrarianCourts,unlessmodifiedbythisAct.TheSpecial
AgrarianCourtsshalldecideallappropriatecasesundertheirspecialjurisdictionwithinthirty(30)
daysfromsubmissionofthecasefordecision.

SECTION58.AppointmentofCommissioners.TheSpecialAgrarianCourts,upontheirown
initiativeorattheinstanceofanyoftheparties,mayappointoneormorecommissionersto
examine,investigateandascertainfactsrelevanttothedisputeincludingthevaluationof
properties,andtofileawrittenreportthereofwiththecourt.

SECTION59.OrdersoftheSpecialAgrarianCourts.NoorderoftheSpecialAgrarianCourts
onanyissue,question,matterorincidentraisedbeforethemshallbeelevatedtotheappellate
courtsuntilthehearingshallhavebeenterminatedandthecasedecidedonthemerits.

SECTION60.Appeals.AnappealmaybetakenfromthedecisionoftheSpecialAgrarian
CourtsbyfilingapetitionforreviewwiththeCourtofAppealswithinfifteen(15)daysreceiptof
noticeofthedecisionotherwise,thedecisionshallbecomefinal.Anappealfromthedecisionof
theCourtofAppeals,orfromanyorder,rulingordecisionoftheDAR,asthecasemaybe,shall
bebyapetitionforreviewwiththeSupremeCourtwithinanonextendibleperiodoffifteen(15)
daysfromreceiptofacopyofsaiddecision.

SECTION61.ProcedureonReview.ReviewbytheCourtofAppealsortheSupremeCourt,
asthecasemaybe,shallbegovernedbytheRulesofCourt.TheCourtofAppeals,however,
mayrequirethepartiestofilesimultaneousmemorandawithinaperiodoffifteen(15)daysfrom
notice,afterwhichthecaseisdeemedsubmittedfordecision.

SECTION62.PreferentialAttentioninCourts.AllcourtsinthePhilippines,bothtrialand
appellate,shallgivepreferentialattentiontoallcasesarisingfromorinconnectionwiththe
implementationoftheprovisionsofthisAct.Allcasespendingincourtarisingfromorin
connectionwiththeimplementationofthisActshallcontinuetobeheard,triedanddecidedinto
theirfinality,notwithstandingtheexpirationofthetenyearperiodmentionedinSection5hereof.

CHAPTERXIV
Financing

SECTION63.FundingSource.TheinitialamountneededtoimplementthisActfortheperiod
often(10)yearsuponapprovalhereofshallbefundedfromtheAgrarianReformFundcreated
underSections20and21ofExecutiveOrderNo.229.Additionalamountsareherebyauthorized
tobeappropriatedasandwhenneededtoaugmenttheAgrarianReformFundinordertofully
implementtheprovisionsofthisAct.Sourcesoffundingorappropriationsshallincludethe
following:a)ProceedsofthesalesoftheAssetsPrivatizationTrustb)Allreceiptsfromassets
recoveredandfromsalesofillgottenwealthrecoveredthroughthePresidentialCommissionon
GoodGovernmentc)ProceedsofthedispositionofthepropertiesoftheGovernmentinforeign
countriesd)PortionofamountsaccruingtothePhilippinesfromallsourcesofofficialforeign
grantsandconcessionalfinancingfromallcountries,tobeusedforthespecificpurposesof
financingproductioncredits,infrastructures,andothersupportservicesrequiredbythisActcdt
(e)Othergovernmentfundsnototherwiseappropriated.Allfundsappropriatedtoimplementthe
provisionsofthisActshallbeconsideredcontinuingappropriationsduringtheperiodofits
implementation.

SECTION64.FinancialIntermediaryfortheCARP.TheLandBankofthePhilippinesshallbe
thefinancialintermediaryfortheCARP,andshallinsurethatthesocialjusticeobjectivesofthe
CARPshallenjoyapreferenceamongitspriorities.

CHAPTERXV
GeneralProvisions

SECTION65.ConversionofLands.Afterthelapseoffive(5)yearsfromitsaward,whenthe
landceasestobeeconomicallyfeasibleandsoundforagriculturalpurposes,orthelocalityhas
becomeurbanizedandthelandwillhaveagreatereconomicvalueforresidential,commercialor
industrialpurposes,theDAR,uponapplicationofthebeneficiaryorthelandowner,withdue
noticetotheaffectedparties,andsubjecttoexistinglaws,mayauthorizethereclassificationor
conversionofthelandanditsdisposition:Provided,Thatthebeneficiaryshallhavefullypaidhis
obligation.

SECTION66.ExemptionsfromTaxesandFeesofLandTransfers.Transactionsunderthis
Actinvolvingatransferofownership,whetherfromnaturalorjuridicalpersons,shallbe
exemptedfromtaxesarisingfromcapitalgains.Thesetransactionsshallalsobeexemptedfrom
thepaymentofregistrationfees,andallothertaxesandfeesfortheconveyanceortransfer
thereofProvided,Thatallarrearagesinrealpropertytaxes,withoutpenaltyorinterest,shallbe
deductiblefromthecompensationtowhichtheownermaybeentitled.

SECTION67.FreeRegistrationofPatentsandTitles.AllRegistersofDeedsarehereby
directedtoregister,freefrompaymentofallfeesandothercharges,patents,titlesand
documentsrequiredfortheimplementationoftheCARP.

SECTION68.ImmunityofGovernmentAgenciesfromUndueInterference.Noinjunction,
restrainingorder,prohibitionormandamusshallbeissuedbythelowercourtsagainstthe
DepartmentofAgrarianReform(DAR),theDepartmentofAgriculture(DA),theDepartmentof
EnvironmentandNaturalResources(DENR),andtheDepartmentofJustice(DOJ)intheir
implementationoftheprogram.
SECTION69.AssistanceofOtherGovernmentEntities.ThePARC,intheexerciseofits
functions,isherebyauthorizedtocallupontheassistanceandsupportofothergovernment
agencies,bureausandoffices,includinggovernmentownedorcontrolledcorporations.

SECTION70.DispositionofPrivateAgriculturalLands.Thesaleordispositionofagricultural
landsretainedbyalandownerasaconsequenceofSection6hereofshallbevalidaslongas
thetotallandholdingsthatshallbeownedbythetransfereethereofinclusiveofthelandtobe
acquiredshallnotexceedthelandholdingceilingsprovidedforinthisAct.Anysaleordisposition
ofagriculturallandsaftertheeffectivityofthisActfoundtobecontrarytotheprovisionshereof
shallbenullandvoid.TransfereesofagriculturallandsshallfurnishtheappropriateRegisterof
DeedsandtheBARCanaffidavitattestingthathistotallandholdingsasaresultofthesaid
acquisitiondonotexceedthelandholdingceiling.TheRegisterofDeedsshallnotregisterthe
transferofanyagriculturallandwithoutthesubmissionofthisswornstatementtogetherwith
proofofserviceofacopythereoftotheBARC.

SECTION71.BankMortgages.Banksandotherfinancialinstitutionsallowedbylawtohold
mortgagerightsorsecurityinterestsinagriculturallandstosecureloansandotherobligationsof
borrowers,mayacquiretitletothesemortgagedproperties,regardlessofarea,subjectto
existinglawsoncompulsorytransferofforeclosedassetsandacquisitionasprescribedunder
Section13ofthisAct.acd

SECTION72.Lease,Management,GrowerorServiceContracts,MortgagesandOtherClaims.
LandscoveredbythisActunderlease,management,growerorservicecontracts,andthe
likeshallbedisposedofasfollows:(a)Lease,management,growerorservicecontracts
coveringprivatelandsmaycontinueundertheiroriginaltermsandconditionsuntiltheexpiration
ofthesameevenifsuchlandhas,inthemeantime,beentransferredtoqualifiedbeneficiaries.
(b)MortgagesandotherclaimsregisteredwiththeRegisterofDeedsshallbeassumedbythe
governmentuptoanamountequivalenttothelandowner'scompensationvalueasprovidedin
thisAct.

SECTION73.ProhibitedActsandOmissions.Thefollowingareprohibited:(a)Theownership
orpossession,forthepurposeofcircumventingtheprovisionsofthisAct,ofagriculturallandsin
excessofthetotalretentionlimitsorawardceilingsbyanyperson,naturalorjuridical,except
thoseundercollectiveownershipbyfarmerbeneficiaries.(b)Theforcibleentryorillegaldetainer
bypersonswhoarenotqualifiedbeneficiariesunderthisActtoavailthemselvesoftherightsand
benefitsoftheAgrarianReformProgram.(c)Theconversionbyanylandownerofhisagricultural
landintoanynonagriculturalusewithintenttoavoidtheapplicationofthisActtohislandholdings
andtodispossesshistenantfarmersofthelandtilledbythem.(d)Thewillfulpreventionor
obstructionbyanyperson,associationorentityoftheimplementationoftheCARP.(e)Thesale,
transfer,conveyanceorchangeofthenatureoflandsoutsideofurbancentersandcitylimits
eitherinwholeorinpartaftertheeffectivityofthisAct.Thedateoftheregistrationofthedeedof
conveyanceintheRegisterofDeedswithrespecttotitledlandsandthedateoftheissuanceof
thetaxdeclarationtothetransfereeofthepropertywithrespecttounregisteredlands,asthe
casemaybe,shallbeconclusiveforthepurposeofthisAct.(f)Thesale,transferorconveyance
byabeneficiaryoftherighttouseoranyotherusufructuaryrightoverthelandheacquiredby
virtueofbeingabeneficiary,inordertocircumventtheprovisionsofthisAct.
SECTION74.Penalties.Anypersonwhoknowinglyorwillfullyviolatestheprovisionsofthis
Actshallbepunishedbyimprisonmentofnotlessthanone(1)monthtonotmorethanthree(3)
yearsorafineofnotlessthanonethousandpesos(P1,000.00)andnotmorethanfifteen
thousandpesos(P15,000.00),orboth,atthediscretionofthecourt.Iftheoffenderisa
corporationorassociation,theofficerresponsiblethereforshallbecriminallyliable.

SECTION75.SuppletoryApplicationofExistingLegislation.TheprovisionsofRepublicAct
No.3844asamended,PresidentialDecreeNos.27and266asamended,ExecutiveOrderNos.
228and229,bothSeriesof1987andotherlawsnotinconsistentwiththisActshallhave
suppletoryeffect.

SECTION76.RepealingClause.Section35ofRepublicActNo.3834,PresidentialDecree
No.316,thelasttwoparagraphsofSection12ofPresidentialDecreeNo.946,Presidential
DecreeNo.1038,andallotherlaws,decreesexecutiveorders,rulesandregulations,issuances
orpartsthereofinconsistentwiththisActareherebyrepealedoramendedaccordingly.cdt

SECTION77.SeparabilityClause.If,foranyreason,anysectionorprovisionofthisActis
declarednullandvoid,noothersection,provision,orpartthereofshallbeaffectedandthesame
shallremaininfullforceandeffect.

SECTION78.EffectivityClause.ThisActshalltakeeffectimmediatelyafterpublicationinat
leasttwo(2)nationalnewspapersofgeneralcirculation.
Approved:June10,1988