Professional Documents
Culture Documents
Can spouses retain 5 hectares each under CARL? – It depends. Elements of tenant-landlord relationship:
a. If the property regime is conjugal or absolute community – 1. The LO has engaged a person to personally cultivate an
the spouses can retain only 5 hectares. agricultural land; and
b. If the property regime is separation of property – the 2. The LO is compensated in terms of share in the produce
spouses can retain 5 hectares each (a total of 10 hectares) (share tenancy) or in terms of a price certain or
ascertainable in produce or in money or both (leasehold
Who has the right to choose the retention area? – the landowner. tenancy).
The chosen area should be COMPACT and CONTIGUOUS. As
long as the area to be retained is compact and contiguous and it Effect if the tenant chooses to remain in the retained area:
Grounds for cancellation of CLOA: Basis of Amortization: Max. amortization is 5% of the annual
1. Abandonment of land gross production as established by the DAR. After the 5th year,
2. Neglect or Misuse of land the interest rate and/or the principal obligation may be reduced
3. Failure to pay 3 annual amortizations by the LBP to make the repayment affordable.
4. Misuse or diversion of financial and support services
5. Sale, transfer or conveyance of right to use land Effect of failure to pay 3 annual amortizations:
6. Illegal conversion of land LBP can forfeit landholding and award it to other qualified
beneficiaries. The beneficiary whose land has been foreclosed or
Can a beneficiary who has not fully paid amortizations sell the Sec. 31. Corporate Landowners
land to another? Yes, under ff. conditions: Approval of the DAR;
land should be sold only to an heir or to any other qualified 2 schemes available to corporate Los;
beneficiary; and the transferee must undertake to cultivate the 1. Voluntary Land Transfer
land himself, otherwise, the LBP will take the land for proper 2. Stock distribution
disposition. Both schemes are no longer operative. Only allowed up to June 30,
If complied with, LBP will compensate the beneficiary in one 2009. After this date, the modes of acquisition are limited to
lump sum for the amounts he has already paid, together with voluntary offer to sell and compulsory acquisition.
value of improvements.
Sec. 32. Production-Sharing
Can the beneficiary lease the land? Yes provided that the lease - If more than 5M gross sales/year are realized:
is for agricultural purposes. If for non-agricultural, seek approval 3% of the gross sales - to be distributed to regular and other
of the DAR. It can also be leased to former LO after obtaining farm workers
approval from the DAR through the PARC. 1% of the gross sales – to be distributed to the managerial,
supervisory and technical employees
IMPROVEMENT OF THE LEASEHOLD RELATIONSHIP - If profits are realized – additional 10% of the net profit after
tax, to be distributed to regular and other farmworkers.
Sec. 12. Determination of Lease Rentals This section was declared unconstitutional with respect to
livestock and poultry.
DAR has the power to fix rentals, in this wise: Sec. 32-A. Incentives
For lands devoted to rice and other crops – 25% of the Incentives for regular fishpond or prawn farm workers is 7.5% of the
average normal harvest after deducting the amount used net profit before tax over.
for seeds and the cost of harvesting, or threshing. If
there has been no normal harvest, then the estimated CONVERSION OF AGRICULTURAL LANDS
Scope of DAR’s conversion authority: Those after the effectivity of Effect of failure to implement approved conversion: Land will
RA no. 6657 continue to be covered by CARP
Who can apply for conversion? Sec. 65-A. Conversion into Fishpond and Prawn Farms
1. The beneficiary General Rule: No conversion of Public Agricultural Lands into
2. The Landowner with respect only to his retained area which Fishponds and Prawn Farms.
is tenanted Except: when the coastal zone is declared suitable for fishpond
When to file application for conversion? development by the provincial government and BFAR
-After the lapse of 5 years from the award of the land. If condition is complied with, DENR can allow the lease and
Conditions before application for conversion be filed: development of the area.
1. When the land ceases to be economically feasible for Private Agricultural Lands: can be converted into fishponds and
agricultural purposes prawn farms up to a maximum area of 5 hectares. BUT DAR may
2. When the locality has become urbanized and the land will approve more than 5 hectares, if:
have a greater economic value for residential, commercial or The use of the land is more economically feasible and sound for
industrial purposes. fishpond/prawn farm; Simple and absolute majority of the regular
Obligations of the beneficiary when conversion is approved: farm workers/tenants agree to the conversion.
Remedy from adverse decision of the CA: appeal by Certiorari with Sec. 73 Prohibited Acts and Omissions
the SC w/n 15 days Criminal violations of CARL: ownership or possession in excess of
awarded land; forcible entry or illegal detainer; illegal conversion,
SUPPORT SERVICES FOR THE FARMERS AND LOs sale transfer conveyance of lands outside of urban centers, etc.