THE COMPREHENSIVE AGRARIAN REFORM LAW (REPUBLIC ACT NO.

6657,
AS AMENDED

DATES OF APPROVAL OF RELEVANT AGRARIAN REFORM LAWS

TITLE DATE OF APPROVAL

Republic Act No. 6657 June 15, 1988
Republic Act No. 7881 February 20, 1995
Republic Act No. 7905 February 23, 1995
Republic Act No. 8532 February 23, 1998
Republic Act No. 9700 August 7, 2009

I. INTRODUCTION

CONSTITUTIONAL BASIS

1. Article II, Section 21: The State shall promote comprehensive rural development and
agrarian reform.

2. Article XII, Section 1: . . . The State shall promote industrialization and full
employment based on sound agricultural development and agrarian reform, . . .

3. Article XIII, Section 3: . . . The State shall regulate the relations between workers and
employers, recognizing the right of labor to its just share in the fruits of production and
the right of enterprises to reasonable returns on investments, and to expansion and growth.

4. Article XIII, Section 4: The State shall, by law, undertake an agrarian reform program
founded on the right of farmers and regular farmworkers, who are landless, to own
directly or collectively the lands they till or, in the case of other farmworkers, to receive a
just share of the fruits thereof. To this end, the State shall encourage and undertake the just
distribution of all agricultural lands, subject to such priorities and reasonable retention
limits as the Congress may prescribe, taking into account ecological, developmental, or
equity considerations, and subject to the payment of just compensation. In determining
retention limits, the State shall respect the right of small landowners. The State shall
further provide incentives for voluntary land-sharing.

5. Article XIII, Section 5: The State shall recognize the right of farmers, farmworkers,
and landowners, as well as cooperatives, and other independent farmers' organizations to
participate in the planning, organization, and management of the program, and shall
provide support to agriculture through appropriate technology and research, and adequate
financial, production, marketing, and other support services.

6. Article XIII, Section 6: The State shall apply the principles of agrarian reform or
stewardship, whenever applicable in accordance with law, in the disposition or utilization
of other natural resources, including lands of the public domain under lease or concession
suitable to agriculture, subject to prior rights, homestead rights of small settlers, and the
rights of indigenous communities to their ancestral lands.

The State may resettle landless farmers and farmworkers in its own agriculture estates
which shall be distributed to them in the manner provided by law.

7. Article XIII, Section 8: The State shall provide incentives to landowners to invest the
proceeds of the agrarian reform program to promote industrialization, employment
creation, and privatization of public sector enterprises. Financial instruments used as
payment for their lands shall be honored as equity in enterprises of their choice.

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Constitutionality of CARP Law.

a. The constitutionality of RA 6657 has been upheld in Association of Small

Landowners v. Secretary of Agrarian Reform , 175 SCRA 342 (1989) and companion
cases. The Supreme Court held that the requirement of public use has already been
settled by the Constitution itself. It noted that "[n]o less than the 1987 Charter calls
for agrarian reform which is the reason why private agricultural lands are to be
taken from their owners, subject to the prescribed retention limits."

"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 nullification
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 find 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 financial 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."

b. While RA 6657 itself has been held constitutional, the Supreme Court in a
subsequent case, Luz Farms v. Secretary of Agrarian Reform , 192 SCRA 51 (1990),
declared unconstitutional Sec. 3 (b), 10 and 11 thereof in so far as they include lands
devoted to the raising of livestock, swine and poultry within its coverage. As a result
of this ruling, Congress enacted RA 7881 (1995) amending these provisions and
incorporating new provisions to existing ones. The amendments adopted the Luz
doctrine by removing livestock, swine and poultry farms from CARP coverage.

c. EXPROPRIATION UNDER THE LAND REFORM PROGRAM DISTINGUISHED FROM

ORDINARY EXPROPRIATION PROCEEDING. The taking of agricultural lands under the
government's land reform program is based on the combined exercise of the State's
power of eminent domain and police power. xxx Thus, to the extent that agrarian
laws limit the size of the lands which landowners may retain, they partake of the
exercise of police power. On the other hand, to the extent that they require the
payment of just compensation, they reflect the nature of the taking as an exercise of
the State's power of eminent domain. (Galeon vs. Ho. Edelwina Pastoral and DAR, CA
GR No. 23168; see also Vinzons-Magana vs. Hon. Conrado Estrella, et al., September
13, 1991, GR No. 60269)

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AGRARIAN LAW; Rationale for the enactment. The agrarian law was established in the
light of the social justice precept of the Constitution and in the exercise of the police
power of the state to promote the common weal (Primero vs. CIR, L-10594, May 29, 1957;
Pineda, et al. vs. De Guzman, et al., L-23773-74, December 29, 1967; Salen vs. Hon.
Dinglasan et al., June 28, 1991, GR No. 59082)

AGRARIAN REFORM; Raison d'être. Agrarian reform was enacted primarily because of the
realization that there is an urgent need to alleviate the lives of the vast number of poor
farmers in our country. (Gonzales et al., vs. CA, June 18, 2001, GR No. 11035)

Social Justice/Social Legislation. We have repeatedly stressed that social justice — or any
justice for that matter — is for the deserving, whether he be a millionaire in his mansion or
a pauper in his hovel. It is true that, in case of reasonable doubt, we are to tilt the balance in
favor of the poor to whom the Constitution fittingly extends its sympathy and compassion.
But never is it justified to give preference to the poor simply because they are poor, or reject
the rich simply because they are rich, for justice must always be served for the poor and the
rich alike according to the mandate of the law. (Gelos vs. CA, 208 SCRA 608, 616 cited in
Victor G. Valencia vs. CA, G.R. No. 122363, April 29, 2003)

DECLARATION OF PRINCIPLES AND POLICIES [SECTION 2]

It is the policy of the State to pursue a Comprehensive Agrarian Reform Program (CARP).
The welfare of the landless farmers and farmworkers will receive the highest
consideration to promote social justice and to move the nation toward sound rural
development and industrialization, and the establishment of owner cultivatorship of
economic-size farms as the basis of Philippine agriculture.

The State shall promote industrialization and full employment based on sound
agricultural development and agrarian reform, through industries that make full and
efficient use of human and natural resources, and which are competitive in both domestic
and foreign markets: Provided, That the conversion of agricultural lands into industrial,
commercial or residential lands shall take into account, tillers' rights and national food
security. Further, the State shall protect Filipino enterprises against unfair foreign
competition and trade practices.

The State recognizes that there is not enough agricultural land to be divided and
distributed to each farmer and regular farmworker so that each one can own his/her
economic size family farm. This being the case, a meaningful agrarian reform program
to uplift the lives and economic status of the farmer and his/her children can only be
achieved through simultaneous industrialization aimed at developing a self-reliant and
independent national economy effectively controlled by Filipinos.

To this end, the State may, in the interest of national welfare or defense, establish and
operate vital industries.

A more equitable distribution and ownership of land, with due regard to the rights of
landowners to just compensation, retention rights under Section 6 of Republic Act No.
6657, as amended, and to the ecological needs of the nation, shall be undertaken to
provide farmers and farmworkers with the opportunity to enhance their dignity and
improve the quality of their lives through greater productivity of agricultural lands.

The agrarian reform program is founded on the right of farmers and regular farmworkers,
who are landless, to own directly or collectively the lands they till or, in the case of other
farmworkers, to receive a just share of the fruits thereof. To this end, the State shall

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encourage and undertake the just distribution of all agricultural lands, subject to the
priorities and retention limits set forth in this Act, taking into account ecological,
developmental, and equity considerations, and subject to the payment of just
compensation. The State shall respect the right of small landowners, and shall provide
incentive for voluntary land sharing.

As much as practicable, the implementation of the program shall be community-based to

assure, among others, that the farmers shall have greater control of farmgate prices, and
easier access to credit.

The State shall recognize the right of farmers, farmworkers and landowners, as well as
cooperatives and other independent farmers' organizations, to participate in the
planning, organization, and management of the program, and shall provide support to
agriculture through appropriate technology and research, and adequate financial,
production, marketing and other support services.

The State shall recognize and enforce, consistent with existing laws, the rights of rural
women to own and control land, taking into consideration the substantive equality
between men and women as qualified beneficiaries, to receive a just share of the fruits
thereof, and to be represented in advisory or appropriate decision-making bodies. These
rights shall be independent of their male relatives and of their civil status.

The State shall apply the principles of agrarian reform, or stewardship, whenever
applicable, in accordance with law, in the disposition or utilization of other natural
resources, including lands of the public domain, under lease or concession, suitable to
agriculture, subject to prior rights, homestead rights of small settlers and the rights of
indigenous communities to their ancestral lands.

The State may resettle landless farmers and farm workers in its own agricultural estates,
which shall be distributed to them in the manner provided by law.

By means of appropriate incentives, the State shall encourage the formation and
maintenance of economic size family farms to be constituted by individual beneficiaries
and small landowners.

The State shall protect the rights of subsistence fishermen, especially of local
communities, to the preferential use of communal marine and fishing resources, both
inland and offshore. It shall provide support to such fishermen through appropriate
technology and research, adequate financial, production and marketing assistance and
other services. The State shall also protect, develop and conserve such resources. The
protection shall extend to offshore fishing grounds of subsistence fishermen against
foreign intrusion. Fishworkers shall receive a just share from their labor in the utilization
of marine and fishing resources.

The State shall be guided by the principles that land has a social function and land
ownership has a social responsibility. Owners of agricultural land have the obligation to
cultivate directly or through labor administration the lands they own and thereby make the
land productive.

The State shall provide incentives to landowners to invest the proceeds of the agrarian
reform program to promote industrialization, employment and privatization of public
sector enterprises. Financial instruments used as payment for lands shall contain features
that shall enhance negotiability and acceptability in the marketplace.

The State may lease undeveloped lands of the public domain to qualified entities for the
development of capital intensive farms, and traditional and pioneering crops especially
those for exports subject to the prior rights of the beneficiaries under this Act.

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I. DEFINITION AGRARIAN REFORM

a. Agrarian Reform means 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 beneficiaries and all other arrangements alternative
to the physical redistribution of lands, such as production or profit-sharing, labor
administration, and the distribution of shares of stocks, which will allow beneficiaries
to receive a just share of the fruits of the lands they work. [Section 3(a)]

Distinguished from Land Reform - 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 beneficiaries. Thus, agrarian reform is broader than land reform.

II. SCOPE OF AGRARIAN REFORM

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.

EXCEPTION TO THE COVERAGE: “Provided, That landholdings of landowners with a

total area of five (5) hectares and below shall not be covered for acquisition and distribution
to qualified beneficiaries.” [Section 4]

a. Agricultural land refers to land devoted to agricultural activity and not classified as
mineral, forest, residential, commercial or industrial land [Section 3 (c)].

As a preliminary point, we note that the landholding in dispute is a mango plantation.

We consider that — and there appears no dispute on this point – this plantation is
covered by the provisions of R.A. No. 3844, as amended, Section 166 (1) of which
defines agricultural land as "land devoted to any growth, including but not limited to
crop lands, salt beds, fish ponds, idle lands and abandoned lands as defined in pars. 18
and 19 of this Section, respectively". It is worth noting also that R.A. No. 1199, the
earlier statute known as "The Agricultural Tenancy Act of the Philippines", effective 30
August 1954, although it did not expressly define agricultural land, did not limit its scope
to rice land, to the contrary, Chapter III, Section 41 of the Statute, among other
provisions, expressly recognized share tenancy in respect of crops other than rice. (Sps.
Cuaño vs. Cristobal et al., September 26, 1994, GR No. 10759)

b. Agriculture, Agricultural Enterprise or Agricultural Activity means the cultivation

of the soil, planting of crops, growing of fruit trees, [REMOVES THE PHRASE:
“raising of livestock, poultry or fish”] 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. (as amended by Section 1, RA 7881) [Section 3 (b)].

CARL PROVISION ON LIVESTOCKS, POULTRY AND SWINE; Declared unconstitutional.

Section 3(b), 11, 13 and 32 of R.A. No. 6657 insofar as it deals the inclusion of the raising of
livestocks, poultry and swine raising in its coverage as well as in the implementing rules and

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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. (Luz Farms vs. Secretary of DAR, December 4, 1990, G.R. No. 86889)

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 reclassification 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 specific limits of the public domain;

b. All lands of the public domain in excess of the specific 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.

Agricultural lands reclassified LGUs into residential, commercial or industrial. Are lands
already classified for residential, commercial or industrial use, and approved by HLURB and
its precursor agencies prior to 15 June 1988, covered by RA 6657? Held: Sec. 4 of RA 6657
states that the CARL covers "regardless of tenurial arrangement and commodity produced,
all public and private and agricultural lands" and as per the transcripts of the Constitutional
Commission, "agricultural lands" covered by agrarian reform refers only to those which are
"arable and suitable lands" and "do not include commercial, industrial and residential
lands." The land subject of the controversy has been set aside for the Lungsod Silangan
Reservation by Proclamation No. 1637 prior to the effectivity of RA 6657 and in effect
converted these lands into residential use. Since the Natalia lands were converted prior to
15 June 1988, DAR is bound by such conversion, and thus it was an error to include these
within the coverage of CARL. (Natalia Realty, Inc. vs. Department of Agrarian Reform, 225
SCRA 278 (1993)

Agricultural lands reclassified by local governments into "forest conservation zones"

Agricultural lands reclassified by local government units (LGUs) into "forest conservation
zones" even prior to the effectivity of CARL do not become forest land under Sec. 3 (c) of RA
6657 as to be exempted from CARP coverage.

It should be noted that under the Constitution, lands of the public domain are classified into
agricultural, forest or timber, mineral lands and national parks (CONST., Art. XII, Sec. 3).
These classifications are called primary classifications or "classification in the first instance."
The same provision of the Constitution also provides that agricultural lands of the public
domain may be further classified according to the uses to which they may be devoted. This
further classification of agricultural land is referred to as secondary classification. The
responsibility over primary classification of lands of the public domain is vested in the
President who exercises such power upon the recommendation of the Department of
Environment and Natural Resources (DENR) (Com. Act No. 141 [1936], Sec. 6; EO 192
[1987]). On the other hand, the authority to reclassify agricultural lands into residential,
commercial or industrial is lodged, among others, in cities and municipalities (Rep. Act No.
7160 [1991], Sec. 20).

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Reclassification by LGUs of agricultural lands into "forest conservation zones" does not
have the effect of converting such lands into forest lands as to be exempted from CARP.
Firstly, an agricultural land is already a primary classification and, hence, can only be
subjected to secondary classification. Secondly, LGUs have no authority or power to make
primary classifications considering that such power is the sole prerogative of the President
exercising such power upon the recommendation of the DENR.

The forest (or mineral) land referred to in Sec. 3 (c) of RA 6657 is therefore to be understood
as referring to forest (or mineral) land declared to be such by the President/DENR and not
by the LGUs. DAR Administrative Order No. 1 (1990) makes this qualification in its definition
of "agricultural land," as follows:

. . . Agricultural land refers to those devoted to agricultural activity as defined in R.A. 6657
and not classified as mineral or forest by the Department of Environment and Natural
Resources (DENR) and its predecessor agencies, and not classified in town plans and zoning
ordinances as approved by the Housing and Land Use Regulatory Board (HLURB) and its
preceding competent authorities prior to 15 June 1988 for residential, commercial or
industrial use.

B. EXCLUSIONS FROM THE COVERAGE OF CARL

1. Under Section 10, as amended by Republic Act No. 7881, excluded from the
coverage of the CARL are lands actually, directly and exclusively used for: (PW, FR,
FW)
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
fishponds 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 fishponds 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 fishponds or prawn farms shall be distributed collectively to the
worker beneficiaries or tenants who shall form a cooperative or association to manage
the same.

3. Likewise, excluded from the coverage of 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 centers;
d. Church sites and convents appurtenant thereto;
e. Mosque sites and Islamic centers appurtenant thereto;
f. Communal burial grounds and cemeteries;

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 g. Penal colonies and penal farms actually worked by the inmates; and
h. Government and private research and quarantine centers.

Central Mindanao University vs. Department of Agrarian Reform Adjudication Board, 215
SCRA 86 (1992) Facts: On 16 January 1958, President Carlos Garcia issued Proclamation No.
467 reserving for the Mindanao Agricultural College, now the CMU, a piece of land to be
used as its future campus. In 1984, CMU embarked on a project titled "Kilusang Sariling
Sikap" wherein parcels of land were leased to its faculty members and employees. Under
the terms of the program, CMU will assist faculty members and employee groups through
the extension of technical know-how, training and other kinds of assistance. In turn, they
paid the CMU a service fee for use of the land. The agreement explicitly provided that there
will be no tenancy relationship between the lessees and the CMU.

When the program was terminated, a case was filed by the participants of the "Kilusang
Sariling Sikap" for declaration of status as tenants under the CARP. In its resolution, DARAB,
ordered, among others, the segregation of 400 hectares of the land for distribution under
CARP. The land was subjected to coverage on the basis of DAR's determination that the
lands do not meet the condition for exemption, that is, it is not "actually, directly, and
exclusively used" for educational purposes.

Issue: Is the CMU land covered by CARP? Who determines whether lands reserved for
public use by presidential proclamation is no longer actually, directly and exclusively used
and necessary for the purpose for which they are reserved?

Held: The land is exempted from CARP. CMU is in the best position to resolve and answer
the question of when and what lands are found necessary for its use. The Court also chided
the DARAB for resolving this issue of exemption on the basis of "CMU's present needs." The
Court stated that the DARAB decision stating that for the land to be exempt it must be
"presently, actively exploited and utilized by the university in carrying out its present
educational program with its present student population and academic faculty" overlooked
the very significant factor of growth of the university in the years to come.

The CMU case is unique as it involves land transferred by the state to CMU through PD 467
which provided for its commitment to a specific use and purpose. Thus, the said land was
already set aside for a specific purpose and, in effect, was taken outside the coverage of
agrarian reform by law. It is submitted that a more accurate basis for the exemption should
have been that the exclusive use of the land — both present and future — has been
determined by law, and not because of the determination of the CMU of what it needs and
how it intends to use it.

In ruling that the CMU is in the best position to determine the use of the land and not DAR,
the Supreme Court seems to have overlooked EO 407 (1990), as amended by EO 448 (1991),
which provides that DAR is vested with the power to determine whether lands reserved for
public uses by presidential proclamation is no longer actually, directly and exclusively used
and necessary for the purpose for which they are reserved. Said EO provides that:

Sec. 1-A. All lands or portions thereof reserved by virtue of Presidential

proclamations for specific public uses by the government, its agencies and
instrumentalities, including government-owned or controlled corporations suitable
for agriculture and no longer actually, directly and exclusively used or necessary for
the purposes for which they have been reserved, as determined by the Department
of Agrarian Reform in coordination with the government agency or instrumentality
concerned in whose favor the reservation was established, shall be segregated from
the reservation and transferred to the Department of Agrarian Reform for

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 distribution to qualified beneficiaries under the Comprehensive Agrarian Reform
Program.

Thus, DAR in coordination with the agency or department involved, can determine whether
the purpose or use for which the lands reserved continues to exist and therefore establish if
they continue to be exempt from CARP coverage.

The Supreme Court's statement that lands of universities and academic institutions need
not be actually, directly and exclusively used for educational or research purposes at the
time of the effectivity of the RA 6657 to be exempt from CARP also fails to consider Sec. 10
of RA 6657. Sec. 10 is explicit that only those lands that are "actually, directly, and
exclusively" used and found necessary for the uses enumerated therein are exempt from
CARP coverage. A literal interpretation of the provision implies that the exemption applies
only to those lands already committed for the enumerated purposes at the date of the
effectivity of law on 15 June 1988. Thus, agricultural land acquired by academic
institutions for academic, educational, or research purposes after 15 June 1988, or those
owned by them but not committed exclusively, actually, and directly to the
abovementioned uses before or on such date, are covered by CARP. For its exclusion from
acquisition and distribution, and for its commitment to said purposes, the institution may
file before DAR for clearance to convert these lands into non-agricultural use.

The importance of the phrase "actually, directly, and exclusively used and found to be
necessary" cannot be understated, as what respondent DECS would want us to do by not
taking the words in their literal and technical definitions. The words of the law are clear and
unambiguous. Thus, the "plain meaning rule" or verba legis in statutory construction is
applicable in this case. Where the words of a statute are clear, plain and free from
ambiguity, it must be given its literal meaning and applied without attempted interpretation.
(DAR vs. DECS, G.R. No. 158228, March 23, 2004)

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, 192 SCRA 51, the
Supreme Court has excluded agricultural lands devoted to commercial livestock,
poultry and swine raising from the coverage of CARL.

The Supreme Court said:

"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 definition 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
in the 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."

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C. ANCESTRAL LANDS

SECTION 9. Ancestral Lands. — For purposes of this Act, ancestral lands of each
indigenous cultural community shall include, but not be limited to, lands in the actual,
continuous and open possession and occupation of the community and its members: provided
that the Torrens Systems shall be respected.

The right of these communities to their ancestral lands shall be protected to ensure their
economic, social and cultural well-being. In line with the principles of self-determination and
autonomy, the systems of land ownership, land use, and the modes of settling land disputes
of all these communities must be recognized and respected.

Any provision of law to the contrary notwithstanding, the PARC may suspend the
implementation of this Act with respect to ancestral lands for the purpose of identifying and
delineating such lands: provided, that in the autonomous regions, the respective legislatures
may enact their own laws on ancestral domain subject to the provisions of the Constitution
and the principles enunciated in this Act and other national laws.

III. SCHEDULE OF IMPLEMENTATION

A. PERIOD FOR IMPLEMENTATION [SECTION 5]

1. The DAR, in coordination with the Presidential Agrarian Reform Council (PARC) shall
plan and program the final 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 (DEA)

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 five (5)-year extension period hereafter all remaining lands above fifty (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 fifty (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, 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 finally resolved pursuant to Section 17 of Republic Act No. 6657, as
amended: Provided, finally, 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 certified under oath by the Barangay

10
Agrarian Reform Council (BARC) and attested under oath by the landowners, are the
qualified beneficiaries. The intended beneficiary 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 financial 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 I Lands Covered Schedule

• Rice and corn lands under Presidential 1988-1992
Decree No. 27;
• all idle or abandoned lands;
• all private lands voluntarily offered by the owners
for agrarian reform;
• all lands foreclosed by the government financial
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

Idle or Abandoned Land refers to any agricultural land not cultivated, tilled or developed to
produce any crop nor devoted to any specific economic purpose continuously for a period of
three (3) years immediately prior to the receipt of notice of acquisition by the government as
provided under this Act, but does not include land that has become permanently or regularly
devoted to non-agricultural purposes. It does not include land which has become
unproductive by reason of force majeure or any other fortuitous event: Provided, that prior to
such event, such land was previously used for agricultural or other economic purpose
[Section 3 (e)].

Phase Two:

(a) Lands twenty four (24) hectares up to fifty (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 fifty (50) hectares which have
already been subjected to a notice of coverage issued on or before December 10, 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 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 II Lands Covered Schedule

• All alienable and disposable public agricultural 1992-1995
lands;
• all arable public agricultural lands under agro-
forest, pasture and agricultural leases already

11
 cultivated and planted to crops in accordance;
• all public agricultural lands which are to be opened
for new development and resettlement;
• and all private agricultural lands in excess of
fifty (50) hectares,

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.

Phase Lands Covered Schedule

III-A • Landholdings above twenty-four (24) 1998-1992
hectares up to fifty hectares; and

III-B • Private agricultural lands with areas above the 1994-1998

retention limit up to 24 hectares

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 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 qualified beneficiaries: Provided, That an
owner-tiller may be a beneficiary 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 beneficiaries
shall be subject to Section 25 of Republic Act No. 6657, as amended: Provided, furthermore,
That rural women shall be given the opportunity to participate in the development planning
and implementation of this Act: Provided, finally, That in no case should the agrarian reform
beneficiaries' 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

12
(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 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. The PARC, upon recommendation of the 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. Definition: 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. CA, 142 SCRA 136.]

b. Types of Tenancy Relation

i. Sharehold Tenancy; and
ii. Leasehold Tenancy.

2. Leasehold vs. Sharehold Tenancy - The two tenancy systems are distinct and different
from 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, final
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
co-managers, 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 fixed rental. [People v. Adillo, 68 SCRA 90].

Sharehold Leasehold

Expenses of Production Tenant and Landowner Tenant

Management Tenant and Landowner Tenant
Payment Tenant and landowner Tenant gets the
whole
divide the harvest in produce with the
proportion to their mere obligation to
contributions. pay rent.

13
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 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. Pangilinan, 58 SCRA 590]

Leasehold Tenancy Civil Law Lease

Subject Matter Agricultural lands only Both rural and urban

properties
Attention and Tenant must personally Lessee does not have to
Cultivation cultivate 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 on determination of lease rental [Section 12]

a. Tenanted lands under the retention limit; and
b. Tenanted lands not yet acquired under the CARL.

Requisites for the existence of tenancy relations:

a) The parties are the landholder and the tenant;
b) The subject is agricultural land;
c) There is consent by the landholder for the tenant to work on the land, given either
orally or in writing, expressly or impliedly;
d) The purpose is agricultural production;
e) There is personal cultivation or with the help of the immediate farm household;
and
f) There is compensation in terms of payment of a fixed amount in money and/or
produce.(Caballes vs. DAR, 168 SCRA 254 [1988]; Gabriel vs. Pangilinan, 58 SCRA 590
(1974); Oarde vs. CA, 280 SCRA 235, [1997]; Qua vs. CA, 198 SCRA 236 [1991].

* Certification of tenancy/non-tenancy issued by DAR are not conclusive evidence of

tenancy relationship. (Oarde vs. CA et al., 280 SCRA 235 [1997]).

A. PARTIES: LANDHOLDER AND TENANT

Tenant defined. - A tenant is:

a. "a person who by himself, or with the aid available from within his immediate
household,
b. cultivates the land belonging to or possessed by another,
c. with the latter's consent
d. for purposes of production,
e. sharing the produce with the landholder or for a price certain or ascertainable in
produce or in money or both, under the leasehold tenancy system." (Rep. Act No.
1199 [1954], sec. 5 (a)).

14
Agricultural tenancy relation is different from farm employer-farm employee relation. The
Court clarified the difference in the case of Gelos vs. CA, 208 SCRA 608 (1992), as follows:
a. On the other hand, the indications of an employer-employee relationship are: 1) the
selection and engagement of the employee; 2) the payment of wages; 3) the power
of dismissal; and 4) the power to control the employee's conduct — although the
latter is the most important element.
b. According to a well-known authority on the subject, tenancy relationship is
distinguished from farm employer-farm worker relationship in that: "In farm
employer-farm worker relationship, the lease is one of labor with the agricultural
laborer as the lessor of his services and the farm employer as the lessee thereof. In
tenancy relationship, it is the landowner who is the lessor, and the tenant the lessee
of agricultural land. The agricultural worker works for the farm employer and for his
labor he receives a salary or wage regardless of whether the employer makes a
profit. On the other hand, the tenant derives his income from the agricultural
produce or harvest."

B. THE SUBJECT IS AGRICULTURAL LAND.

Agricultural Land refers to land devoted to agricultural activity as defined in this Act and not
classified as mineral, forest, residential, commercial or industrial land. [Section 3 (c)]

C. THERE IS CONSENT BY THE LANDHOLDER FOR THE TENANT TO WORK ON THE

LAND, GIVEN EITHER ORALLY OR IN WRITING, EXPRESSLY OR IMPLIEDLY.

Consent must be given by the true and lawful landholder of the property.

Landholder-lessor - is defined as:

a. "any person, natural or juridical,
b. either as owner, lessee, usufructuary or legal possessor of agricultural land,
c. who lets, leases or rents to another said property
d. for purposes of agricultural production
e. and for a price certain or ascertainable either in an amount of money or produce."
(Rep. Act No. 1199 [1954], sec. 42).

* Thus, consent need not be necessarily given personally by the registered owner as long as
the person giving the consent is the lawful landholder as defined by law.

* * From the foregoing discussion, it is reasonable to conclude that a civil law lessee cannot
automatically institute tenants on the property under to Sec. 6 of R.A. No. 3844. The correct
view that must necessarily be adopted is that the civil law lessee, although a legal possessor,
may not install tenants on the property unless expressly authorized by the lessor. And if a
prohibition exists or is stipulated in the contract of lease, the occupants of the property are
merely civil law sublessees whose rights terminate upon the expiration of the civil law lease
agreement. (Victor Valencia vs. CA, G.R. No. 122363, April 29, 2003).

Bernas vs. Court of Appeals, 225 SCRA 119 (1993): Is consent by a legal possessor, even if
without the consent of landowner, sufficient to create tenancy relationship? Held: Yes. As
legal possessor of the property, Benigno had the authority and capacity to enter into an
agricultural leasehold relation with Bernas. "The law expressly grants him, as legal
possessor, authority and capacity to institute an agricultural leasehold lessee on the
property he legally possessed." (at 125-126)

15
In Hilario vs. IAC, 148 SCRA 573 (1987), the Supreme Court held that tenancy relation does
not exist where a usurper cultivates the land. "So the mere cultivation of the land by
usurper cannot confer upon him any legal right to work the land as tenant and enjoy the
protection of security of tenure of the law (Spouses Tiongson vs. Court of Appeals, 130 SCRA
482)."

Endaya vs. Court of Appeals, 215 SCRA 109 (1992) Successors-in-interest of the true and
lawful landholder/owner who gave the consent are bound to recognize the tenancy
established before they acquired the agricultural land.

D. THE PURPOSE IS AGRICULTURAL PRODUCTION.

Tenancy status arises only if an occupant of a parcel of land has been given its possession
for the primary purpose of agricultural production.

Caballes vs. Department of Agrarian Reform 168 SCRA 248 (1988) The fact of sharing alone
is not sufficient to establish a tenancy relationship. The circumstances of this case indicate
that the private respondent's status is more of a caretaker who was allowed by the owner
out of benevolence or compassion to live in the premises and to have a garden of some sort
at its southwestern side rather than a tenant of the said portion. Agricultural production as
the primary purpose being absent in the arrangement, it is clear that the private respondent
was never a tenant of the former owner, Andrea Millenes. Consequently, Sec. 10 of RA
3844, as amended, does not apply. Simply stated, the private respondent is not a tenant of
the herein petitioner.

E. THERE IS PERSONAL CULTIVATION OR WITH THE HELP OF THE IMMEDIATE FARM

HOUSEHOLD.

Under DAR AO 5 (1993), cultivation is not limited to the plowing and harrowing of the land,
but also the husbanding of the ground to forward the products of the earth by general
industry, the taking care of the land and fruits growing thereon, fencing of certain areas, and
the clearing thereof by gathering dried leaves and cutting of grasses. In coconut lands,
cultivation includes the clearing of the landholding, the gathering of the coconuts, their
piling, husking and handling as well as the processing thereof into copra, although at times
with the aid of hired laborers.

"Personal cultivation" exists when a person cultivates the land by himself and with the aid
available from his immediate farm household.”

In Oarde vs. CA, et al., supra, the Court held that the element of personal cultivation is
essential for an agricultural leasehold. There should be personal cultivation by the tenant or
by his immediate farm household or members of the family of the lessee or other persons
who are dependent upon him for support or who usually help him in his activities
(Evangelista vs. CA, 158 SCRA 41). The law is explicit in requiring the tenant and his
immediate family to work the land (Bonifacio vs. Dizon, 177 SCRA 294), and the lessee
cannot hire many persons to help him cultivate the land (De Jesus vs. IAC, 175 SCRA 559). In
Gabriel vs. Pangilinan, supra, the Court held that the tenancy relation was severed when the
tenant and/or his immediate farm household ceased from personally working the fishpond
when he became ill and incapacitated.

Castillo vs. CA, 205 SCRA 529 (1992) Facts: Alberto Ignacio filed a complaint for injunction
against Castillo alleging that he is the agricultural tenant of the latter. He claims that Castillo

16
allowed him to construct a rest house in the property and that, thereafter, Castillo started
cutting fruit-bearing trees on the land and filled with adobe stones the area intended for
vegetables. On the other hand, Castillo denied that Ignacio was his tenant but that the latter
was only a "magsisiga" of the landholding and that he did not ask permission from Ignacio
when he constructed his rest house. The trial court found no tenancy relationship between
the parties but this was reversed by the Court of Appeals.

Held: The element of personal cultivation is absent in this case. The alleged tenant "is a
businessman by occupation and this is his principal source of income. He manufactures
hollow blocks. He also has a piggery and poultry farm as well as a hardware store on the
land adjoining the subject land. To add to that, the respondent farms the riceland of one Dr.
Luis Santos. It is thus evident that the working hours of the respondent as a businessman
and his other activities do not permit him to undertake the work and obligations of a real
tenant. This is further supported by the undisputed fact that the respondent cannot even
personally perform the work of a smudger because on 22 October 1986, the respondent
hired some 20 people who are not members of his family to cut and burn the grass in the
premises of the subject land." (at 535-536).

F. THERE IS COMPENSATION IN TERMS OF PAYMENT OF A FIXED AMOUNT IN MONEY

AND/OR PRODUCE.

In Matienzo v. Servidad, 107 SCRA 276 (1981), the Supreme Court held that: From the above
definition of a tenant, it is clear that absent a sharing arrangement, no tenancy relationship
had ever existed between the parties. What transpired was that plaintiff was made overseer
over a 7-hectare land area; he was to supervise applications for loans from those residing
therein; he was allowed to build his house thereon and to plant specified plants without
being compensated; he was free to clear and plant the land as long as he wished; he had no
sharing arrangement between him and defendant; and he was not obligated to pay any
price certain to nor share the produce, with the latter.

SECURITY OF TENURE

i. Under Sec. 7 of RA 1199, "the agricultural leasehold relation once established shall
confer upon the agricultural lessee the right to continue working on the landholding
until such leasehold relation is extinguished. The agricultural lessee shall be entitled
to security of tenure on his landholding and cannot be ejected therefrom unless
authorized by the Court for causes herein provided.”

ii. The Supreme Court has consistently ruled that once a leasehold relation has been
established, the agricultural lessee is entitled to security of tenure. The tenant has a
right to continue working on the land except when he is ejected therefrom for cause
as provided by law (De Jesus vs. IAC, 175 SCRA 559 [1989]).

Transfer of ownership or legal possession does not affect security of tenure. In Tanpingco
vs. IAC, 207 SCRA 653 (1992), the Court upheld the validity of donation but the donee must
respect the rights of the tenant and ordered the donee to pay the tenant disturbance
compensation.

Under Art. 428 of the Civil Code, the owner has the right to dispose of a thing without other
limitations than those established by law. As an incident of ownership, therefore, there is
nothing to prevent a landowner from donating his naked title to the land. However, the new
owner must respect the rights of the tenant. Sec. 7 of RA No. 3844, as amended, gives the

17
agricultural lessee the right to work on the landholding once the leasehold relationship is
established. It also entitles him to security of tenure on his landholding . He can only be
ejected by the court for cause. Time and again, this Court has guaranteed the continuity and
security of tenure of a tenant even in cases of a mere transfer of legal possession . As
elucidated in the case of Bernardo v. Court of Appeals (168 SCRA 439 [1988]), security of
tenure is a legal concession to agricultural lessees which they value as life itself and
deprivation of their landholdings is tantamount to deprivation of their only means of
livelihood. Also, under Section 10 of the same Act, the law explicitly provides that the
leasehold relation is not extinguished by the alienation or transfer of the legal possession of
the landholding. The only instances when the agricultural leasehold relationship is
extinguished are found in Section 8, 28 and 35 of the Code of Agrarian Reforms of the
Philippines. The donation of the land did not terminate the tenancy relationship. However,
the donation itself is valid." (at 657-658; underscoring supplied).

Constitutionality of the provision on security of tenure. The constitutionality of the

provision on security of tenure has long been settled by the Supreme Court in the case of
Primero vs. Court of Agrarian Relations , 101 Phil. 675 (1957) Held: The provisions of law
assailed as unconstitutional do not impair the right of the landowner to dispose or alienate
his property nor prohibit him to make such transfer or alienation; they only provide that in
case of transfer or in case of lease, as in the instant case, the tenancy relationship between
the landowner and his tenant should be preserved in order to insure the well-being of the
tenant or protect him from being unjustly dispossessed by the transferee or purchaser of
the land; in other words, the purpose of the law in question is to maintain the tenants in the
peaceful possession and cultivation of the land or afford them protection against unjustified
dismissal from their landholdings. Republic Act 1199 is unquestionably a remedial legislation
promulgated pursuant to the social justice precepts of the Constitution and in the exercise
of the police power of the state to promote the commonwealth. It is a statute relating to
public subjects within the domain of the general legislative powers of the State and
involving the public rights and public welfare of the entire community affected by it.
Republic Act 1199, like the previous tenancy laws enacted by our lawmaking body, was
passed by congress in compliance with the constitutional mandates that "the promotion of
social justice to insure the well-being and economic security of all the people should be
the concern of the State" (Art II, sec. 5) and that "the state shall regulate the relations
between landlord and tenant in agriculture" (Art. XIV, sec. 6). (at 680).

In Pineda vs. de Guzman, 21 SCRA 1450 (1967), the Supreme Court also held: Section 49 of
the Agricultural Tenancy Act, Republic Act 1199, as amended, enunciates the principle of
security of tenure of the tenants, such that it prescribes that the relationship of landholder
and tenant can only be terminated for causes provided by law. The principle is epitomized
by the axiom on land tenure that once a tenant, always a tenant. Attacks on the
constitutionality of this guarantee have centered on the contention that it is a limitation on
freedom of contract, a denial of the equal protection of the law, and an impairment of or a
limitation on property rights. The assault is without reason. The law simply provides that the
tenancy relationship between the landholder and his tenant should be preserved in order to
insure the well-being of the tenant and protect him from being unjustly dispossessed of the
land. Its termination can take place only for causes and reasons provided in the law. It was
established pursuant to the social justice precept of the State to promote the common weal.
(Primero vs. Court of Industrial Relations, G.R. No. L-10594, May 29, 1957) (at 1456).

Termination of Tenancy Relation Causes for termination of leasehold relation. Section 8 of

RA 3844 provides that agricultural leasehold relation shall be extinguished by the following
acts or omissions:
a. Abandonment of the landholding without the knowledge of the agricultural lessor;

18
 b. Voluntary surrender of the landholding by the agricultural lessee, written notice of
which shall be served three months in advance; or
c. Absence of an heir to succeed the lessee in the event of his/her death or permanent
incapacity.

Conversion of the land to non-agricultural uses also extinguishes the leasehold relation
because the subject land is no longer an agricultural land and the purpose is no longer
agricultural production. However, under Sec. 16 of DAR AO 1 (1999), the tenant affected by
the conversion is entitled to disturbance compensation which must be paid within sixty (60)
days from the issuance of the order of conversion.

Abandonment. In the case of Teodoro vs. Macaraeg, 27 SCRA 7 (1969), it was held that the
word "abandon," in its ordinary sense, means to forsake entirely, to forsake or renounce
utterly. "The emphasis is on the finality and the publicity with which some thing or body is
thus put in the control of another, and hence the meaning of giving up absolutely, with
intent never again to resume or claim one's rights or interests." In other words, the act of
abandonment constitutes actual, absolute and irrevocable desertion of one's right or
property. . . . Likewise, failure to cultivate the land by reason of the forcible prohibition to do
so by a third party cannot also amount to abandonment, for abandonment presupposes
free will." (at 19-20; underscoring supplied).

Voluntary surrender of property

The tenant's intention to surrender landholding cannot be presumed, much less determined
by mere implication, but must be convincingly and sufficiently proved.

Effect of death or permanent incapacity of tenant-lessee on leasehold relation. Under Sec.

9 of RA 3844, in case of death or permanent incapacity, the leasehold relation continues
between the lessor and the person who can cultivate the land personally, chosen by the
lessor within one month from such death or incapacity, from among the following:
a. The surviving spouse;
b. The eldest direct descendant by consanguinity;
c. The next eldest descendant or descendants in the order of age.

The age requirement is applied under the presumption that all heirs/successors are
qualified.

The leasehold relation is not terminated by death or permanent incapacity of the

landholder-lessor. It binds his legal heirs (Rep. Act No. 3844 [1963], sec. 9).

Also, Sec. 10 of RA 3844 provides that the mere expiration of the term or period in a
leasehold contract nor by sale, alienation or transfer of the legal possession of the
landholding does not extinguished leasehold. In these cases, the transferee is subrogated to
the rights and substituted to the obligations of the lessor.

Dispossession of Tenants
Under Sec. 36 of RA 3844, dispossession of tenants may be authorized by the Court in a
judgment that is final and executory if after due hearing it is shown that:
a. The lessee failed to substantially comply with the terms and conditions of the
contract or with pertinent laws unless the failure is caused by a fortuitous event or
force majeure;
b. The lessee planted crops or used the land for a purpose other than what has been
previously agreed upon;

19
 (Note: Under DAR AO 5 [1993], the lessee is now allowed to intercrop or
plant secondary crops after the rental has been fixed, provided the lessee
shoulders the expenses.)
c. The lessee failed to adopt proven farm practices necessary to conserve the land,
improve its fertility, and increase its productivity taking into consideration the
lessee's financial capacity and the credit facilities available to him;
d. There has been substantial damage, destruction or unreasonable deterioration of
the land or any permanent improvement thereon due to the fault or negligence of
the lessee;
e. The lessee failed to pay lease rental on time except when such non-payment is due
to crop failure to the extent of 75% as a result of a fortuitous event;
f. The lessee employed a sub-lessee; or
g. The landholding is declared by the DAR to be suited for residential, commercial,
industrial or some other urban purposes subject to payment of disturbance
compensation to the lessee.
(Note: Under Sec. 36 [1] of RA 3844, as amended by RA 6389, disturbance
compensation is equivalent to five [5] times the average of the gross harvest
on his landholding during the last five [5] preceding calendar years.)

In the case of Garchitorena vs. Panganiban, 6 SCRA 338 (1962), it was held that when non-
payment of lease rentals occurs for several years, said omission has the effect of depriving
the landowner of the enjoyment of the possession and use of the land.

Under Sec. 36 (1) of RA 3844, as amended, a lessor who ejects his tenant without the
court's authorization shall be liable for:
a. fine or imprisonment;
b. damages suffered by the agricultural lessee in addition to the fine or imprisonment
for unauthorized dispossession;
c. payment of attorney's fees incurred by the lessee; and
d. the reinstatement of the lessee.

B. Production Sharing Plan

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 final land transfer.

2. Period for Compliance: Within ninety (90) days from effectivity of CARL to execute a
production-sharing plan, under guidelines prescribed by the appropriate government agency.

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)

Pending final land transfer, individuals or entities owning, or operating under lease or
management contract, agricultural lands are hereby mandated to execute a
production-sharing plan with their farm workers or farmworkers' organization
[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 fiscal year;

20
 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-
beneficiaries), at least one percent (1%) of the gross sales shall be distributed to the
managerial, supervisory and technical group; and
e. If profit is realized, an additional ten percent (10%) of the net profit after tax shall
be distributed to the regular and other farmworkers within ninety (90) days of the end
of the fiscal year.

V. REGISTRATION

A. Registration of Landowners: Within 180 days from the effectivity of CARL,

landowners, natural or juridical, shall file 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. Registration of Beneficiaries: The DAR, in coordination with the Barangay

Agrarian Reform Committee (BARC) shall register all agricultural lessees, tenants and
farmworkers who are qualified to be beneficiaries under the CARL. These potential
beneficiaries 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 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 five (5) hectares.

The right to retain an area of seven hectares [now 5 hectares] is not absolute — it is
premised on the condition that the landowner is cultivating the area sought to be retained
or will actually cultivate it upon effectivity of the law. (Florencia Paris vs. Dionisio A. Alfeche,
et al., 364 SCRA 110).

2. Additional three hectares may be awarded to each child, subject to the

following qualifications:
a. That the child is at least fifteen (15) years of age; and

21
 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.

Homestead grantees or their direct compulsory heirs can own and retain the original
homesteads, only for “as long as they continue to cultivate them.” (Florencia Paris vs.
Dionisio A. Alfeche, et al., 364 SCRA 110).

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
five (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 first undergo the land acquisition and distribution process of
the program: Provided, further, That when these lands have been subjected
to expropriation, the agrarian reform beneficiaries therein shall be paid
just compensation [Section 6-A].

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 beneficiary in the same or another
agricultural land. The tenant must exercise this option within a period of one (1)
year from the time the landowner manifests his choice of the area for retention.
a. 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 beneficiary under
this Act.
b. In case the tenant chooses to be a beneficiary in another agricultural land,
he loses his right as a leaseholder to the land retained by the landowner.

B. PROCEDURE

1. VOLUNTARY LAND TRANSFER (VLT) [SECTION 20]

Landowner may enter into a voluntary arrangement for direct transfer of
their lands to qualified beneficiaries subject to the following guidelines:

a. All notices for voluntary transfer 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.

22
 2. COMPULSORY ACQUISITION [SECTION 16]
a. Notice to acquire the land shall be sent to the landowner and the
beneficiaries. 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 located.

b. Within thirty (30) days from receipt of the written notice, the
landowner shall inform the DAR of his acceptance or rejection of the
offer.

c. 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 Certificate of Title and other muniments
of title.

d. In case of rejection or failure to reply, the DAR shall conduct summary

administrative proceedings to determine the compensation. If he does not
concur with the compensation determined by the DAR, he can bring the
matter to the courts.

e. Payment of the just compensation as determined by the DAR or the

Court.

f. Registration with the Register of Deeds for the issuance of Transfer

Certificate of Title in the name of the Republic of the Philippines.

g. 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].

MODES OF ACQUISITION OF PRIVATE AGRICULTURAL LANDS

CARP is founded on the right of landless farmers and regular farmers to own directly or
collectively the lands they till through the just distribution of all agricultural lands. To
achieve this end, a mechanism is provided in the law for the identification, acquisition,
distribution of agricultural lands. As earlier discussed, CARP covers both private and public
agricultural lands. Since the State owns the latter, they just need to be identified and
distributed to the beneficiaries. Private agricultural lands, upon the other hand, generally
have to go through the acquisition process before their ultimate distribution to the farmers.

In order for the acquisition process to be completed, several requisites must be satisfied.
First, the land should be privately owned and found suitable for agriculture. Second, there
are beneficiaries willing to take over the ownership of the land and make it more
productive. Third, the landowner is paid just compensation or deposit in cash or LBP bonds
is made in his name if the value is contested. Finally, title to the land is transferred in the
name of the Republic of the Philippines.

It must be clarified, however, that full payment of just compensation is not necessarily
required in Voluntary Land Transfer (VLT)/Direct Payment Scheme (DPS) because the terms
of payment of just compensation are governed by the mutual agreement of the parties,
i.e., the farmer-beneficiary and the landowner. Likewise, under EO 407, the payment of
just compensation to the government instrumentality as landowner may come even after
land distribution, that is, thirty (30) days from the registration of the ownership documents

23
by the Register of Deeds in favor of the Department of Agrarian Reform (Exec. Order No.
407 [1990], sec. 1, par. 4).

In the same manner that full payment of just compensation is not always necessary to
complete acquisition, transfer of title to the Republic of the Philippines is not necessary in
VLT since the landholding is directly transferred from the landowner to the beneficiary.

The modes by which private agricultural lands may be acquired are as follows:
a. Operation Land Transfer (OLT),
b. Voluntary Offer to Sell (VOS),
c. Voluntary Land Transfer/ Direct Payment Scheme (VLT/DPS),
d. Compulsory Acquisition (CA),
e. Voluntary Stock Distribution in the case of corporate farms.

Operation Land Transfer

Operation Land Transfer (OLT) is a mechanism established for the implementation of PD 27

(1972) and EO 228 (1987). It is a mode by which ownership of tenanted rice and corn lands
is transferred to tenant-beneficiaries. It must be stressed that for lands to come under OLT
pursuant to PD 27, there must be first showing that they are tenanted lands. (Castro vs. CA,
99 SCRA 722 [1980])

In the case of Locsin vs. Valenzuela, 194 SCRA 195 (1991), the Supreme Court explained the
legal effect of land being placed under OLT as vesting ownership in the tenant. However, in a
subsequent case, Vinzons-Magana vs. Estrella, 201 SCRA 536 [1991], the High Tribunal,
citing Pagtalunan vs. Tamayo, 183 SCRA 252 (1990), which predated the Locsin case, ruled
that the mere issuance of a certificate of land transfer does not vest ownership in the
farmer/grantee.

Voluntary Offer to Sell

Voluntary Offer to Sell (VOS) is a scheme whereby the landowners voluntarily offer their
agricultural lands for coverage regardless of phasing. It does not, however, mean that
landholdings voluntarily offered for sale are automatically accepted by DAR. A VOS may be
rejected if the landholding is not suitable for agriculture, or has a slope of more than
eighteen percent (18%) and is undeveloped. Likewise, said offer may be refused if there are
no takers or persons willing to be agrarian reform beneficiaries and, lastly, the only
identified ARBs are the qualified children of the landowner. [DAR A. O. No. 06 (1997)]

Landowners who voluntarily offer their lands for sale shall be entitled to an additional five
percent (5%) cash payment. It must be noted, however, that banks and other financial
institutions are not covered by said incentive. (Rep. Act No. 6657, [1988 ], Sec. 19)

Voluntary Land Transfer/ Direct Payment Scheme

Voluntary Land Transfer or Direct Payment Scheme (VLT/DPS) is a mode of acquisition

whereby the landowner and the beneficiary enter into a voluntary arrangement for the
direct transfer of the lands to the latter. Not all private agricultural lands may be subject of
voluntary land transfer. For instance, lands mortgaged with banking and/or financial
institutions cannot be the subject of VLT/DPS.

All notices for voluntary land transfer must be submitted to the DAR within the first year of
the implementation of the CARP. Negotiations between the landowners and qualified

24
beneficiaries covering any voluntary land transfer which remain unresolved after one (1)
year shall not be recognized and such land shall instead be acquired by the government and
transferred pursuant to the Comprehensive Agrarian Reform Law. [Rep. Act No. 6657 (1988),
sec. 20.]

Direct payments in cash or in kind may be made by the farmer-beneficiary to the landowner
under terms to be mutually agreed upon by both parties, which shall be binding upon them,
upon registration with the approval by the DAR. Said approval should be received by the
farmer-beneficiary within thirty (30) days from the date of registration. In the event they
cannot agree on the price of land, the procedure for compulsory acquisition as provided in
Section 16 shall apply. The LBP shall extend financing to the beneficiaries for purposes of
acquiring the land. [Rep. Act No. 6657 (1988), sec. 21.]

Compulsory Acquisition

Compulsory acquisition is a mode whereby the land is expropriated by the State in

accordance with the procedure outlined in Section 16 of R.A. No. 6657.

All private agricultural lands which have become due under the phase of implementation as
provided in Section 7 of R.A. No. 6657 are subject to compulsory acquisition. However,
where the landowner opts for other modes of acquisition such as voluntary offer to sell or
voluntary land transfer, compulsory acquisition is suspended. In these cases, if negotiations
fail, CA is resumed. Likewise, all idle or abandoned agricultural lands regardless of size are
subject to compulsory acquisition. Lands subjected to Compulsory Acquisition may be
allowed to shift to Voluntary Land Transfer/Direct Payment Scheme or Voluntary Offer to
Sell provided that the claim folder had not yet been forwarded to the LBP for the
computation of land value. [DAR A. O. 06, (1997) II (D).]

Voluntary stock distribution of corporate farms

Voluntary stock distribution is an alternative arrangement to the physical distribution of

lands wherein corporate owners voluntarily divest a portion of their capital stock, equity or
participation in favor of their workers or other qualified beneficiaries. Stock ownership is
based on the capital stocks of the corporation and is equivalent to the agricultural land
actually devoted to agricultural activities valued in relation to the total assets of the
corporation. (Rep. Act No. 6657 [1988], sec. 31 as implemented by DAR Adm. O. No. 10
[1988] and DAR Adm. O. No. 1 [1991])

However, corporate farm owners cannot avail of voluntary stock distribution at present.
Section 31 of RA 6657 states that "if within two (2) years from the effectivity of CARP, the
land or stock transfer has not been made or the plan for such stock distribution has not
been approved by the Presidential Agrarian Reform Council (PARC) within the same period,
the agricultural land of the corporate owners or corporation shall be subject to compulsory
acquisition under existing DAR rules and regulations.

C. COMPENSATION

1. Determination of Just Compensation.

Under Sec. 17 of RA 6657, the factors considered in the determination of

just compensation are:
a) cost of acquisition;
b) current value of like properties;

25
 c) nature of land;
d) actual use;
e) income;
f) sworn valuation by the landowner;
g) tax declaration;
h) assessment by government assessors;
i) social and economic benefits contributed by farmers and farmworkers
and by the government; and
j) non-payment of taxes or loans secured from government financing
institutions on land.

The provisions of RA 6657 on just compensation do not provide hard-and-

fast rules which must be strictly adhered to by DAR and the LBP in
determining just compensation.

The consent of the farmer-beneficiary is not needed in the determination of just

compensation pursuant to Section 18 of RA No. 6657 (Land Bank of the Philippines vs. CA
and Pascual (G.R. No. 128557, December 29, 1999).

"Just Compensation" is defined as the full and fair equivalent of the property taken from its
owner by the expropriator. It has been repeatedly stressed by this Court, that the measure is
not the taker's gain but the owner's loss. The word "just" is used to intensify the meaning of
the word "compensation" to convey the idea that the equivalent to be rendered for the
property to be taken shall be real, substantial, full and ample. (Association of Small
Landowners in the Philippines, Inc. vs. Secretary of Agrarian Reform , 175 SCRA 343 (1989)).

The CARP Law conditions the transfer of possession and ownership of the land to the
government on the receipt by the landowner of the corresponding payment or the deposit
by the DAR of the compensation in cash or LBP bonds with an accessible bank. Until then,
title remains with the landowner. No outright change of ownership is contemplated either.
(Association of Small Land Owners in the Philippines vs. Secretary of Agrarian Reform), 175
SCRA 343 (1989.)

Any party who disagrees with the decision may bring the matter to the court of proper
jurisdiction for final determination. In the case of Association of Small Landowners, the
Supreme Court explained that the determination of just compensation is a function
addressed to the courts of justice. [175 SCRA 343 (1989)].

2. Under EO 405 (1990), Land Bank of the Philippines shall be primarily

responsible for the determination of the land valuation and compensation.

The foregoing clearly shows that there would never be a judicial determination of just
compensation absent respondent Land Bank's participation. Logically, it follows that
respondent is an indispensable party in an action for the determination of just
compensation in cases arising from agrarian reform program.

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%
SAHI

26
 * In case of VOS, the landowner shall be entitled to an
additional 5% cash payment. [Section 19]

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 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
the said section will result in the nullification of the entire program, killing the farmer's
hopes even as they approach realization and resurrecting the spectre 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. (Association of Small Landowners in the
Philippines, Inc. vs. Secretary of Agrarian Reform , 175 SCRA 343).

b. BALANCE in any of the following:

i. Shares of stock in government-owned or -controlled corporations,
LBP preferred shares, physical assets or other qualified 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.

Accepting the theory that payment of the just compensation is not always required to be
made fully in money, we find 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 landowners, who can afford a bigger balance in bonds
and other things of value. No less importantly, the government financial 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. (Ibid.)

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]

27
 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]

Beneficiaries, in their order of priority, are:

1. Agricultural lessees and share tenants;

2. Regular Farmworker is a natural person who is employed on a permanent

basis by an agricultural enterprise or farm [Section 3 (h)];

a. Farmer refers to a natural person whose primary livelihood is

cultivation of land or the production of agricultural crops livestock and/or
fisheries 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)]. (as amended by
Section 2, RA 9700)

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. The term 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)].

**Agrarian Dispute refers to any controversy relating to tenurial

arrangements, whether leasehold, tenancy, stewardship or otherwise, over
lands devoted to agriculture, including disputes concerning farmworkers'
associations or representation of persons in negotiating, fixing,
maintaining, changing, or seeking to arrange terms or conditions of such
tenurial arrangements.

It includes any controversy relating to compensation of lands acquired

under this Act and other terms and conditions of transfer of ownership
from landowners to farmworkers, tenants and other agrarian reform
beneficiaries, whether the disputants stand in the proximate relation of
farm operator and beneficiary, landowner and tenant, or lessor and lessee.

3. Seasonal farmworkers: natural persons who are employed on a recurrent,

periodic or intermittent basis by an agricultural enterprise or farm, whether as
permanent or non-permanent laborers, such as "dumaan", "sacada", and the like
[Section 3 (i)];

4. Other farmworkers: farmworkers who are not regular or seasonal

farmworkers [Section 3 (j)];

5. Actual tillers or occupants of public lands;

6. Collectives or cooperatives of the above beneficiaries; and

28
 * Cooperatives shall refer to organizations composed primarily of small
agricultural producers, farmers, farmworkers, or other agrarian reform
beneficiaries who voluntarily organize themselves for the purpose of
pooling land, human, technological, financial or other economic resources,
and operated on the principle of 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 qualified 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 fishing 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)]. (as added by Section 2, RA
9700)

B. Disqualifications of Beneficiaries [Section 22]

1. Beneficiaries under Presidential Decree No. 27 who have culpably sold,

disposed of, or abandoned their land;

2. Beneficiaries 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. CAR, 7 SCRA
812].

3. Beneficiaries with at least three (3) hectares of agricultural land; and

* Under the CARL, a beneficiary is landless if he owns less than three (3)
hectares of agricultural land. [Section 25]

4. Beneficiaries 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 beneficiary 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.
Operation Land Transfer (OLT) is a mechanism established for the
implementation of PD 27 (1972) and EO 228 (1987). It is a mode by which
ownership of tenanted rice and corn lands is transferred to tenant-
beneficiaries. It must be stressed that for lands to come under OLT pursuant
to PD 27, there must be first showing that they are tenanted lands. (Castro
vs. CA, 99 SCRA 722 [1980])

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.
29
 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 beneficiaries to the LBP in thirty (30)
annual amortizations at six percent (6%) interest per annum. The payments for
the first three (3) years after the awards may be at reduced amounts as
established by the PARC: Provided, That the first five (5) annual payments may
not be more than five percent (5%) of the value of the annual gross production
as established by the DAR. Should the scheduled annual payments after the fifth
year exceed ten percent (10%) of the annual gross production and the failure to
produce accordingly is not due to the beneficiary'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 five (5) annual payments may not be more than five 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 beneficiaries 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 qualified
beneficiaries 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 five (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 economic value for
residential, commercial or industrial purposes. [Section 65]

1. Authority to Allow Conversion of Agricultural Land to Non-agricultural 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)]

30
 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 reclassification or conversion on the land and its
disposition. [Section 65]

2. Conversion
a. After the lapse of five (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 beneficiary or the landowner, may authorize
the reclassification or conversion of the land and its disposition: Provided,
That the beneficiary 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. Beneficiary 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.

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 five years rental on his landholding.
* Displaced farmers are entitled to disturbance compensation which
varies depending on the agreement between the farmers and the
landowners.

Authority to Approve/Disapprove Conversion

Under Sec. 4 and 5 of EO 129-A (1987), the DAR is mandated to "approve or disapprove the
conversion, restructuring or readjustment of agricultural lands into non-agricultural uses." It
authorizes DAR to "have exclusive authority to approve or disapprove conversion of
agricultural land for residential, commercial, industrial, and other land uses as may be
provided for by law." Also, Sec. 4 of OP MC 54 (1993), provides that "action on application
for land use conversion on individual landholdings shall remain as the responsibility of the
DAR, . . . , pursuant to RA No. 6657 and EO 129-A."

31
"land use conversion" is "the act or process of changing the current use of a piece of
agricultural land into some other use as approved by DAR."

Scope of Land Use Conversion

Under DAR AO 1 (1999), the following agricultural lands are subject to DAR's conversion
authority:
a) Those to be converted to residential, commercial, industrial, institutional and
other non-agricultural purposes;
b) Those to be devoted to another type of agricultural activity such as livestock,
poultry, and fishpond the effect of which is to exempt the land from CARP
coverage;
c) Those to be converted to non-agricultural use other than that previously
authorized; and
d) Those reclassified to residential, commercial, industrial, or other non-agricultural
uses on or after the effectivity of RA 6657 on June 15, 1988 pursuant to the Local
Government Code.

After the reclassification by the LGU, a DAR conversion clearance shall still be required prior
to actual change of use of the land as explicitly provided in OP Memorandum Circular No. 54
(1993), to wit: "actions on applications for land use conversion shall remain as the
responsibility of DAR". (Sec. 4; Underscoring supplied.)

Agricultural lands expropriated by LGUs pursuant to the power of eminent domain need not
be subject of DAR conversion clearance prior to change in use. This was the Court's
pronouncement in Province of Camarines Sur vs. CA, 222 SCRA 173 (1993).

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-beneficiaries.

b. Exception: However, if it is not economically feasible and sound to

divide the land, then it shall be owned collectively by the farmworker-
beneficiaries 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 qualified beneficiaries shall
be deemed to have complied with CARL.

32
 b. Amount to be divested: Corporations owning agricultural lands may
give their qualified beneficiaries the 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 fish, 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
certified public accountants chosen by the beneficiaries;
ii. The beneficiaries 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 beneficiaries shall have the same
rights and features as all other shares; and
iv. Any transfer of shares of stock by the original beneficiaries shall
be void ab initio unless said transaction is in favor of a qualified and
registered beneficiary 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

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 financial 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 identification 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.

33
 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 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, financial 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 non-traditional financial 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 financial 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 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-five percent (25%) of all appropriations for agrarian reform
shall be immediately set aside and made available for support services. In
addition, the DAR shall be authorized to package proposals and receive grants,
aid and other forms of financial assistance from any source. [Section 36]

X. SPECIAL AREAS OF CONCERN [SECTION 40]

A. Subsistence Fishing: Small fisherfolk, 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 beneficiaries shall be
required to undertake reforestation and conservation production methods.
* Certificates 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 qualified landless people.
* Agricultural land allocations shall be made for ideal family-size farms.

34
 * Uncultivated lands of the public domain shall be made available on a lease
basis to interested and qualified parties. Priority shall be given to those who will
engage in the development of capital-intensive, traditional or pioneering crops.

D. Idle, Abandoned, Foreclosed 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 qualified 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 war 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 beneficiaries
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;
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 beneficiaries, 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 specific agrarian reform
areas; and
d. Control mechanisms for evaluating the owner's declaration of current
fair market value.

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 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 to 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 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 from the Department of Environment and Natural
Resources;
iii. Representative from 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
beneficiaries, at least one of whom shall be a farmer or farmworker
representing the principal crop of the province; and
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 province-by-
province implementation of the CARP. The ten-year 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;

36
 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 beneficiaries;
b. Representatives of farmer and farmworker non-beneficiaries;
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;
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;

Agrarian Dispute refers to any controversy relating to tenurial

arrangements, whether leasehold, tenancy, stewardship or
otherwise, over lands devoted to agriculture, including disputes
concerning farmworkers' associations or representation of
persons in negotiating, fixing, maintaining, changing, or
seeking to arrange terms or conditions of such tenurial
arrangements.

It includes any controversy relating to compensation of lands

acquired under this Act and other terms and conditions of
transfer of ownership from landowners to farmworkers, tenants
and other agrarian reform beneficiaries, whether the disputants
stand in the proximate relation of farm operator and
beneficiary, landowner and tenant, or lessor and lessee.
[Section 3 (d)]

b. Assist in the identification of qualified beneficiaries and

landowners within the barangay;
c. Attest to the accuracy of the initial parcellary mapping of the
beneficiary's tillage;
d. Assist qualified beneficiaries in obtaining credit from lending
institutions;
e. Assist in 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 beneficiaries;
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.

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 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 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 matters 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]

In Vda. De Tangub vs. Court of Appeals, we held that the jurisdiction of the Department of
Agrarian Reform is limited to the following: a) adjudication of all matters involving
implementation of agrarian reform; b) resolution of agrarian conflicts and land tenure-
related problems; and c) approval and disapproval of the conversion, restructuring or
readjustment of agricultural lands into residential, commercial, industrial, and other non-
agricultural uses. (Morta, Sr. vs. Occidental, 308 SCRA 167).

Agrarian Law Implementation Cases

Under DAR AO 6 (2000), ALI cases refer to those agrarian cases falling under the exclusive
jurisdiction of the DAR Secretary. These cases strictly involve the administrative
implementation of RA 6657 and other agrarian laws, rules and regulations. These cases
include the following:
a) Classification and identification of landholdings for coverage under CARP,
including protests or oppositions thereto and petitions for lifting of coverage;
b) Identification, qualification or disqualification of potential farmer-beneficiaries;
c) Subdivision surveys of lands under CARP;
d) Issuance, recall or cancellation of Certificates of Land Transfer (CLTs) and CARP
Beneficiary Certificates (CBCs) in cases outside the purview of PD 816, including
the issuance, recall or cancellation of EPs or CLOAs not yet registered with the
Register of Deeds;
e) Exercise of the right of retention by the landowner;
f) Application for exemption under Section 10 of RA 6657 as implemented by DAR
AO 13 (1990);
g) Application for exemption pursuant to DOJ Opinion No. 44 (1990) as
implemented by DAR AO 6 (1994);
h) Application for exemption under DAR AO No. 9 (1993);
i) Application for exemption under Section 1 of RA 7881 as implemented by DAR
AO 3 (1995);
j) Issuance of certificate of exemption for lands subject of VOS and CA found
unsuitable for agricultural purposes pursuant to DAR MC 34 (1997);

38
 k) Application for conversion of agricultural lands to residential, commercial,
industrial or other non-agricultural uses including protests or opposition
thereto;
l) Right of the ARBs to homelots;
m) Disposition of excess area of the FBs landholdings;
n) Transfer, surrender or abandonment by the FBs of his farmholding and its
disposition;
o) Increase of awarded area awarded by the farmer-beneficiary;
p) Conflict of claims in landed estates and settlements; and
q) Such other matters not mentioned above but strictly involving the
administrative implementation of RA 6657 and other agrarian laws, rules and
regulations as determined by the Secretary. (DAR Adm. O. No. 6 [2000], sec. 2).

Likewise, the Regional Director or the DAR official having jurisdiction over the case, shall,
motu propio or at the instance of a party, have the authority to issue a Cease and Desist
Order or Status Quo Order pending the resolution of the case in the following instances:
a) where grave or irreparable damage will result to the parties;
b) where the doing or continuance of certain acts will render the case moot and
academic; or
c) where there is a need to maintain peace and order and prevent injury or loss of
life or property.

In this regard, the issuing authority may request the assistance of law enforcement agencies
to implement the order. (Sec. 17, DAR Adm. O. 6 [2000])

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 [including review and appeal from RARAD/PARAD]

Primary and Exclusive Original and Appellate Jurisdiction of DARAB

"Section 17 of EO 229 vested the DAR with quasi-judicial powers to determine and
adjudicate agrarian reform matters as well as exclusive original jurisdiction over all matters
involving implementation of agrarian reform except those following under the exclusive
original jurisdiction of the Department of Agriculture and the Department of Environment
and Natural Resources in accordance with law.” Machete vs. CA, 250 SCRA 176 (1995)

At any rate, in the Philippines Veterans Bank v. Court of Appeals, We declare that there is
nothing contradictory between the DAR's primary jurisdiction to determine and adjudicate
agrarian reform matters and exclusive original jurisdiction over all matters involving the
implementation of agrarian reform, which includes jurisdiction of regional trial courts over
all petitions for the determination of just compensation. The first refers to administrative
proceedings, while the second refers to judicial proceedings.

"Executive Order 129-A, while in the process of reorganizing and strengthening the DAR,
created the Department of Agrarian Reform Adjudication Board (DARAB) to assume the
powers and functions with respect to the adjudication of agrarian reform cases". (Also
Quismundo vs. CA, 201 SCRA 609 (1991).

39
However, DARAB has no jurisdiction with respect to agrarian matters involving the
prosecution of all criminal offenses under RA 6657 and the determination of just
compensation for landowners (Rep. Act No. 6657 (1988), Sec. 57). Jurisdiction over said
matters are lodged with the Special Agrarian Courts (SACs). The Court of Appeals and
Supreme Court maintain their appellate jurisdiction over agrarian cases decided by DARAB.
(Vda. de Tangub vs. CA, 191 SCRA 885 (1990).

* It is the DARAB which has the authority to determine the initial valuation of lands
involving agrarian reform although such valuation may only be considered
preliminary as the final determination of just compensation is vested in the courts.
(Land Bank of the Philippines vs. Court of Appeals, 321 SCRA 629).

Where there are no tenurial, leasehold, or any agrarian relations whatsoever between the
parties that could bring a controversy under the ambit of the agrarian reform laws, the
Department of Agrarian Reform Adjudication Board has no jurisdiction. (Heirs of the Late
Herman Rey Santos vs. CA, 327 SCRA 293).

In Monsanto v. Zerna, (G.R. No. 142501, 7 December 2001) it was held that for DARAB to
have jurisdiction over a case, there must exist a tenancy relationship between the parties. In
order for a tenancy agreement to take hold over a dispute, it would be essential to establish
all its indispensable elements: (1) the parties are the landowner and the tenant or
agricultural lessee; (2) subject matter of the relationship is an agricultural land; (3) there is
consent between the parties to the relationship; (4) that the purpose of the relationship is
to bring about agricultural production (5) there is personal cultivation on the part of the
tenant or agricultural lessee; and (6) the harvest is shared between the landowner and the
tenant or agricultural lessee.

In the case a bar, the element that the parties must be "the landowner and the tenant or
agricultural lessee" on which all other requisites of the tenancy agreement depends, is
absent. Tenancy relationship is inconsistent with the assertion of ownership of both parties.
Petitioners claim to be the owners of the entire Lot No. 5198, by virtue of a Certificate of
Sale of Delinquent Real Property, while private respondents assert ownership over Lots Nos.
5198-A, 5198-A, 5198-B and 5198-D on the basis of an Emancipation Patent and Transfer
Certificate of Title. Neither do the records show any juridical tie or tenurial relationship
between the parties' predecessors-in-interest. The questioned lot it allegedly declared for
taxation purposes in the name of petitioners' father, Dalmacio Arzaga who does not appear
to have any connection with the private respondents nor with their alleged predecessor-in-
interest, Caridad Fuentebella. (Rodolfo Arzaga, et al., vs. Salvacion Copias, et al. , G.R. No.
152404, March 28, 2003).

Sec. 1, Rule II of the DARAB Revised Rules and Procedures provides that the Board has
primary and exclusive jurisdiction, both original and appellate, to determine and adjudicate
all agrarian cases including but not limited to the following:
a) All agrarian disputes involving the implementation of the CARP under RA 6657,
EOs 228, 229, and 129-A, RA 3844 as amended by RA 6389, PD 27 and other
agrarian laws and their implementing rules and regulations;
b) Cases involving rights and obligations of persons, whether natural or juridical,
engaged in the management, cultivation and use of all agricultural lands covered
by the CARP and other agrarian laws;
c) Cases involving the valuation of land, and the preliminary determination and
payment of just compensation, fixing and collection of lease rentals, disturbance
compensation, amortization payments and similar disputes concerning the
functions of the LBP;

40
 d) Cases involving the annulment or cancellation of lease contracts or deeds of sale
or their amendments involving lands under the administration and disposition of
the DAR or LBP;
e) Cases arising from or connected with membership or representation in compact
farms, farmers' cooperative and other registered farmers' associations or
organizations, related to lands covered by the CARP and other agrarian laws;
f) Cases involving the sale, alienation, mortgage, foreclosure, preemption and
redemption of agricultural lands under the coverage of the CARP or other
agrarian laws;
g) Cases involving the issuance, correction and cancellation of Certificates of
Landownership Award (CLOAs) and Emancipation Patents (EPs) which are
registered with the Land Registration Authority;
h) Cases previously falling under the original and exclusive jurisdiction of the defunct
Court of Agrarian Relations under Section 12 of PD 946, except sub-paragraph (Q)
thereof and PD 815;
i) And such other agrarian cases, disputes, matters or concerns referred to it by the
Secretary of the DAR.

DARAB's Jurisdiction over Agrarian Disputes

**Agrarian Dispute refers to any controversy relating to tenurial arrangements, whether

leasehold, tenancy, stewardship or otherwise, over lands devoted to agriculture, including
disputes concerning farmworkers' associations or representation of persons in negotiating,
fixing, maintaining, changing, or seeking to arrange terms or conditions of such tenurial
arrangements.

It includes any controversy relating to compensation of lands acquired under this Act and
other terms and conditions of transfer of ownership from landowners to farmworkers, tenants
and other agrarian reform beneficiaries, whether the disputants stand in the proximate
relation of farm operator and beneficiary, landowner and tenant, or lessor and lessee.

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 disqualified or inhibits himself or
because the case is complex or sensitive

Sec. 2, Rule II of the DARAB Revised Rules and Procedures provides that the RARAD and the
PARAD has concurrent original jurisdiction with the Board to hear, determine and adjudicate
all agrarian cases and disputes, and incidents in connection therewith, arising with their
assigned territorial jurisdiction.

The RARAD is the Executive Adjudicator in his/her region directly responsible to the
Board. He/she shall:
1) Direct supervision over the PARADs;
2) Recommend to the Board the territorial assignments and the disciplinary
measures appropriate to the PARADs;
3) Adjudicate agrarian disputes and land valuation cases;
4) Hear and handle other cases which cannot be handled by the PARADs:
a) by reason of PARADs disqualification or inhibition;
b) PARADs cannot handle the case properly;
c) because of the complexity and sensitivity of the case;
d) delegated just compensation cases;
e) and those assigned by the Board.

41
The RARAD has concurrent original jurisdiction with the PARAD.

c. PROVINCIAL AGRARIAN REFORM ADJUDICATOR (PARAD)

3. EXCLUSIVE JURISDICTION OF THE SECRETARY OF AGRARIAN

REFORM
* Matters 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 or controversy
unless a certification 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 certification is not a ground for dismissal of
the action. The complainant or petitioner will be given every opportunity
to secure the BARC certification. [Rule III, Section 1 (c) of the DARAB
Rules]

2. Exceptions to the BARC Certification Requirement:

a. Failure of the BARC to issue a certification within thirty (30) days after
a matter or issue is submitted to it;

b. The required certification cannot be complied with for valid reasons

like the non-existence or non-organization of the BARC or the
impossibility of convening it. A certification 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;
* 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 parties 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

42
 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]

Cases should be determined on the merits after all parties have been given full opportunity
to ventilate their causes and defenses, rather than on technicalities or procedural
imperfections. Rules of procedure are mere tools designed to expedite the decision or
resolution of cases and other matters pending in court. A strict and rigid application of rules,
resulting in technicalities that tend to frustrate rather than promote substantial justice, must
be avoided. In fact, Rule 1, Section 6 of the Rules of Court states that the Rules shall be
liberally construed in order to promote their objective of ensuring the just, speedy and
inexpensive disposition of every action and proceeding. (Paulina Diaz, et al., vs. Carlos
Mesias, Jr., G.R. No. 156345, March 19, 2004)

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 fines or censures upon erring parties. [Section 52]

D. Enforcement Powers
1. It shall have the power to summon witnesses, administer 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]

Petitioner LBP urges the Court to reconcile the seeming inconsistency between the period
to file certiorari under Section 54 of R.A. No. 6657 (within fifteen days from receipt of copy
of the decision, order, award or ruling) and that under Section 4 of Rule 65 of the Revised
Rules of Court (sixty days from notice of judgment, order or resolution). The Court holds
that Section 54 of RA No. 6657 prevails since it is a substantive law specially designed for
agrarian disputes or cases pertaining to the application, implementation, enforcement or
interpretation of agrarian reform laws. However, the fifteen-day period provided therein is
extendible, but such extension shall not extend the sixty-day period under Section 4, Rule
65 of the Revised Rules of Court. (Supreme Court citing De Dios vs. CA, 274 SCRA 520)

43
 2. The findings of fact of the DAR shall be final 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 COURTS

A. Jurisdiction [Section 57]

1. The Special Agrarian Courts (Regional Trial Courts) shall 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.

Although the proceedings are described as summary, the landowner and other interested
parties are nevertheless allowed an opportunity to submit evidence on the real value of the
property. But more importantly, such determination of just compensation by the DAR, as
earlier stated is by no means final and conclusive upon the landowner or any other
interested party for Section 16 (f) clearly provides: "Any party who disagrees with the
decision may bring the matter to the court of proper jurisdiction for final determination of
just compensation" Magana vs. Estrella, 201 SCRA 536 (1991).

In Phil. Veterans Bank vs. Court of Appeals, G.R. No. 132767, 18 January 2000, petitioner
Bank argued that the DAR Adjudicators have no jurisdiction to determine just compensation
for the taking of lands under CARP because such jurisdiction is vested in Regional Trial
Courts designated as Special Agrarian Courts. Hence, Petitioner could file its petition with
the RTC beyond the 15-day period of appeal from the decision of the DAR Adjudicator. The
RTC dismissed the petition of Petitioner for being filed beyond the 15-day period for appeal.
The Supreme Court reiterated its ruling in Republic vs. Court of Appeals, supra, and said:

. . . this rule is an acknowledgment by the DARAB that the power to decide just
compensation cases for the taking of lands under R.A. No. 6657 is vested in the courts. It is
error to think that, because of Rule XIII, S 11, the original and exclusive jurisdiction given to
the courts to decide petitions for determination of just compensation has already been
transformed into an appellate jurisdiction. It only means that, in accordance with settled
principles of administrative law, primary jurisdiction is vested in the DAR as an
administrative agency to determine in a PRELIMINARY MANNER the reasonable
compensation to be paid for the lands taken under the Comprehensive Agrarian Reform
Program, but such determination is subject to challenge in the courts.

The jurisdiction of the Regional Trial Courts is not any less "original and exclusive" because
the question is first passed upon by the DAR, as the judicial proceedings are not a
continuation of the administrative determination. For the matter, the law may provide that
the decision of the DAR is final and unappealable. Nevertheless, resort to courts cannot be
foreclosed on the theory that courts are the guarantors of the legality of administrative
action.

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 file a written report thereof with the court.

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 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. [Rule 42]

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. [Rule 45]

XIV. PROHIBITED ACTS AND OMISSIONS

1. Section 73. The following are prohibited.
a. The ownership or possession, for the purpose of circumventing 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-beneficiaries.

b. The forcible entry or illegal detainer by persons who are not qualified
beneficiaries to avail themselves of the rights and benefits of the CARP.

c. 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.

d. The willful prevention or obstruction by any person, association or

entity of the implementation of the CARP.

e. The sale, transfer, conveyance or change of the nature of lands outside

of urban centers and city limits either in whole or in part after the
effectivity of 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 three (3) months after the effectivity of CARL.
[Section 6]
* Exception: Banks and other financial 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 the

Register of Deeds with respect to titled 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.

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 f. The sale, transfer or conveyance by a beneficiary of the right to use or
any other usufructuary's right over the land he acquired by virtue of being
a beneficiary, 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 fine of not less than one thousand pesos (P1,000.00) and
not more than fifteen thousand pesos (P15,000.00), or both at the discretion of
the court. If the offender is a corporation or association, the officer responsible
therefor shall be criminally liable.

Prohibited Acts and Omissions by Landowners under RA 6657

1. Ownership and Possession of Land Beyond Allowable Limits [73(a) RA 6657]

Elements:
a) Offender is any person, natural or juridical;
b) Person owns or possess agricultural lands in excess of retention limit or
award ceilings, except in the case of collective ownership by farmer
beneficiaries; and
c) The purpose of ownership or possession is to circumvent the provisions of RA
6657;

2. Prohibited Sale, Transfer, Conveyance or Change in the Nature of the Land [73(e)
RA 6657]
Elements:
a) The offender is any person;
b) The person either effects the
i. sale, transfer or conveyance of the land; or
ii. change the nature of the land.
c) The land must be outside of urban centers and city limits;
d) The transaction or the change of the nature of the land may be of the whole
or a portion of the land; and
e) The transaction or the change of the nature of the land was effected after
15 June 1988.

3. Illegal/Premature/Unauthorized Conversions [73(c) RA 6657]

Illegal Conversion
Elements:
a) The land is agricultural land;
b) The offender is the landowner;
c) There are acts committed converting the use of the land into non-
agricultural use; and
d) The intent is to:
i. avoid the application of RA 6657; and
ii. to dispossess tenant farmers tilling the land.

Premature Conversion
Elements:
a) The land is agricultural land;
b) The offender may be any person;
c) Actual development activity is undertaken on the land;
d) The development activity modifies or alters the physical characteristics of
the land;

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 e) The land development renders the land suitable for non-agricultural
purposes; and
f) There is no approved order of conversion from the DAR.

Unauthorized conversion
Elements of the First Type:
a) Offender is any person, i.e., landowner, developer or any other person;
b) The person changes the current use of an agricultural land into another
agricultural purpose; and
c) The change of use was done without an order of conversion from DAR.
Elements of the Second Type:
a) Offender is any person, i.e., landowner, developer, or any other person;
b) The subject land is granted an order of conversion for its commitment to
non-agricultural purposes; and
c) The person commits the land to a purpose other than that allowed under
the order of conversion.

4. Sale, Transfer, Conveyance of Rights Acquired as a Beneficiary [73(f) 6657]

Elements:
a) The offender is an agrarian reform beneficiary;
b) Offender sells, transfers or conveys the right to use or any other
usufructuary right over his land;
c) The subject land was acquired by him/her by virtue of being a beneficiary;
and
d) The act is motivated by the design to circumvent the provisions of R.A.
6657.

5. Misuse or Diversion of Financial Aid and Support Services [Sec. 37 RA 6657]

Elements:
a) The beneficiary was granted financial aid and other support services;
b) The beneficiary either:
i. misuses the financial aid and support services; or
ii. diverts such aid or services for other purposes.

6. Misuse of the Land [Par. 4, Sec. 22 of RA 6657]

Elements of the First Type:
a) Offender is a grantee of land awarded through CLOA or EP;
b) Offender commits acts which cause substantial and unreasonable damage
to the land; and
c) Such act causes the deterioration and depletion of the soil fertility and
improvements thereon.

Elements of the Second Type:

a) Offender is a grantee of land awarded through a CLOA or EP; and
b) He knowingly plants, grows or raises any plant which is the source of
dangerous drug as defined in PD 1683.

7. Continuous Neglect or Abandonment of Awarded Lands [Sec. 22 of RA 6657]

Elements:
a) The offender is an agrarian reform beneficiary;
b) The beneficiary willfully fails or refuses to cultivate, till or develop to
produce any crop the land awarded him; and
c) Such failure or refusal continue for a period of two (2) calendar years.

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8. Material Misrepresentation of Qualifications [Sec. 22 of RA 6657]
Elements:
a) The offender is a beneficiary;
b) Offender intentionally made false statements respecting a matter of fact in
his application for qualification as an ARB under RA 6657 or any other
agrarian laws; and
c) The misrepresented fact was material to the determination of his
qualification to become a beneficiary.

9. Default and Failure in the Payment of Amortization to Landowner [Part I, item A(1)
of DAR MC 19 (1996)]
Elements:
a) Offender is an ARB;
b) The beneficiary acquired the land by virtue of Voluntary Land Transfer or
Direct Payment Scheme;
c) The beneficiary fails to pay the landowner amortization for three (3)
consecutive months; and
d) Failure is due to reasons other than force majeure or fortuitous events.

10. Failure to Pay Amortizations to LBP [DAR MC 19 (1996)]

Elements:
a) The beneficiary is an awardee of a land acquired through the Compulsory
Acquisition or Voluntary Offer to Sell;
b) The beneficiary fails to pay the LBP at least three (3) annual amortization;
and
c) Failure is due to reasons other than force majeure or fortuitous events.

11. Waiver of Rights to Awarded Lands {Part I, item A, no. 9 of MC 19 (1996)]

Elements:
a) Offender is a beneficiary; and
b) The beneficiary has expressly or impliedly waived his rights over the land.

12. FB's Surrender of Awarded Lands to Landowner or Other Non ARBs. [part I, item A
(10) of MC 19 (1996)]
Elements:
a) Offender is a beneficiary;
b) Offender surrenders land awarded him to the landowner or other non-
beneficiaries; and
c) Such surrender is without legal authority or clearance from DAR.

13. Forcible Entry and Unlawful Detainer [Sec. 73 (b) of RA 6657]

Elements:
a) Offender is any person who is not qualified to become an agrarian reform
beneficiaries;
b) He/she deprives the owner, or legal representatives or any assigns of the
said owner, the right of possession thereof either through the following
acts:
i. by entering the land of another by force, intimidation, threat,
strategy, or stealth; or
ii. unlawfully refusing to vacate the land after the right to hold
possession thereof has expired;
c) The intention of the acts is to avail themselves of the rights and benefits of
the Agrarian Reform Program.

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 14. Obstruction and Prevention of CARP Implementation [Sec. 73 (d) of RA 6657]
Elements:
a) Offender may be a landowner, beneficiary or any other person, natural or
juridical; and
b) The person commits acts to prevent or obstructs the implementation of
the CARP.

15. Unlawful Recording of Sale in the Registry of Property Subject to Right of

Redemption [Sec. 13 of RA 3844].
Elements:
a) The offender is the landowner or agricultural lessor, or in case of juridical
persons, the manager or person who has charge of the management or
management of the property or in his default, the person acting in his
stead;
b) He effects the recording of the sale of the land subject of an agricultural
lease; and
c) Such recording was effected without the necessary Affidavit by vendor
that he has given prior written notice of the sale to the agricultural lessor
as required by Sec. 7 of RA 3844.

16. Unlawful Disposition of Lessee [Sec. 31(1) of RA 3844].

Elements:
a) Offender is an agricultural lessor;
b) Offender dispossess the agricultural lessee of his landholding; and
c) Dispossession is without authorization from the Court.

17. Inducement to Execute or Enter into a Share Tenancy Contract [Sec. 167(2) of RA
3844]
Elements:
a) Offender is any person, natural or juridical. In case of juridical persons, the
manager or the person who has charge of the management or
administration of the property, or in his default, the person acting in his
stead shall be liable; and
b) Offender induces another person, as tenant, to execute or enter into a
share tenancy contract with himself or another in violation of RA 3844.

18. Making Untruthful Statements in Affidavit Required under Sec. 13, RA 3844 {Sec.
167(2) of RA 3844]

Sec. 13 of RA 3844 requires that prior to the registration of the sale or transfer of land in the
Registry of Property, the landowner must execute an affidavit that written notice of the sale
or transfer was made to the agricultural lessor as required under Sec. 7 of RA 3844.

Elements:
a) Offender is the landowner, agricultural lessor or any person; and
b) He/she knowingly makes untruthful statements on a material matter in an
affidavit required for the registration of a sale of land subject to right of
pre-emption as required under Sec. 13 of RA 3844.

19. Acts Violating Farmworker's Rights to Self-Organization and to Engage in Other

Concerted Activities [Sec. 167 (4) of RA 3844]

Sec. 40 of RA 3844 recognizes the farmworkers' right to self-organization, and provides that
"the farm workers shall have the right to self-organization and to form, join or assist farm

49
workers' organizations of their own choosing for the purpose of collective bargaining
through representatives of their own choosing: Provided, That this right shall be exercised in
a manner as will not unduly interfere with the normal farm operations. Individuals
employed as supervisors shall not be eligible for membership in farm workers' organizations
under their supervision but may form separate organizations of their own."

Sec. 41 of RA 3844 likewise recognizes the right of farmworkers to engage in concerted

activities, to wit: "The farm workers shall also have the right to engage in concerted
activities for the purpose of collective bargaining and other mutual aid or protection. For
the purpose of this and the preceding Section, it shall be the duty of the farm employer or
manager to allow the farm workers, labor leaders, organizers, advisers and helpers complete
freedom to enter and leave the farm, plantation or compound at the portion of same where
said farm workers live or stay permanently or temporarily."

Elements:
a) Offender is the landowner, agricultural lessor or any person;
b) Offender commits acts which impair or prevent the exercise of
i. the right of farmworkers to self-organization under Sec. 40 of RA 3844;
or
ii. the right to engage in concerted activities as defined under Sec. 41 of RA
3844.

20. Acts Violative of the Right of Farmworkers to a Minimum Wage [Sec. 167 (5) of RA
3844]

Sec. 42 of RA 3844 protects the farmworkers right to a minimum wage and provides that
"[n]otwithstanding any provision of law or contract to the contrary, farm workers in farm
enterprises shall be entitled to at least P3.50 a day for eight hours' work: Provided, That this
wage may, however, be increased by the Minimum Wage Board as provided for in Republic
Act Numbered Six hundred and two."

Elements:
a) Offender is a landowner or any other person; and
b) Offender fails or refuses to pay the farmworker the minimum daily wage as
set in Sec. 43, RA 3844 or determined by the Minimum Wage Board.

21. Cultivation of Another Farmland without Consent of Lessor [Sec. 167 (1) of RA
3844]

Sec. 27 (1) of RA 3844 provides that it shall be unlawful for an agricultural lessee "[t]o
contract to work additional landholdings belonging to a different agricultural lessor or to
acquire and personally cultivate an economic family-size farm, without the knowledge and
consent of the agricultural lessor with whom he had first entered into household, if the first
landholding is of sufficient size to make him and the members of his immediate farm
household fully occupied in its cultivation."
Elements:
a) Offender is an agricultural lessee;
b) The land leased by him is of sufficient size to make him and the members
of his immediate farm household fully occupied in its production;
c) He contracts to work another landholdings belonging to a different
agricultural lessor or acquires and personally cultivate an economic
family-size farm; and
d) The cultivation of the other landholding is without the consent of his first
lessor.

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 22. Unlawful Sublease of Leased Land by Lessor [Sec. 27 (b) of RA 3844]
Elements:
a) Offender is an agricultural lessee;
b) That he employs as sublessee on his landholdings; and
c) The reason for the sub-contracting is other than illness or temporary
incapacity.

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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