6, 435 Hectares of Rice and Corn Lands 1958 Acquired by Mr.

Santos Existing Tenants

Children ( Direct Heir)

Whether or not the tenants rights prevail over the rights of Mr. Santos direct heir?

OUTLINE OF THE PRESENTATION

Principles Behind Agrarian Reform Objectives of Agrarian Reform Types of Approach Liberal Conservative Phil. Govt Stand on Agrarian Reform Phil. Historical Background Pres. Marcos Pres. Aquino Implementation Existing Problems Landowners CARP (Hindrances, Scope, Retention) Evaluation of the Program Recommendation

What is the principle of agrarian reform?

Identify the roots of economic, social and political problems.

Economic poverty and inequality

Social concentration of property rights (growing landless among agricultural tenants). Denial of ancestral lands to the indigenous people. Monopolies in land, labour and capital markets.

Political Unequal distribution of power in the political system between classes, groups and clans.

Peter Allan Cayetano

Aquilino Pimentel III

Ramon Revilla, Jr.

Financial problems

Bureaucratic inefficiency and corruptions

Competition for authority and resources between state institutions and existing conflict of interest among nations.

What is the objective of agrarian reform?

Redistributing agricultural land to its tillers.

Provide security on the property rights. Means to earn an adequate living.

What is conservative approach?

Third world Proportion that a healthy economy requires the operation of land, labour and capital markets free from state intervention.

Problem of poverty is founded in low productivity and not on unequal distribution of assets.

Population growth and redistribution reform is irrelevant.

Liberal Approach
Redistributive of land at the center for rural change. Consolidate existing state authority to defeat or pre-empt revolutionary movements in the countryside.

Undermine monopoly power. To tap the greater efficiency of small-owner in a labour-abundant and capital-scare economy.
To alleviate poverty.

Philippine Government Stand on Agrarian Reform: Conservative Approach

Philippine History Pre-Spanish Period: Datu Spanish Period: No interest in agriculture Naval base in the Pacific Catholic Friars ( agriculture) in coordination with the ilustrado tenants ( landed oligarch).

Encomienda - loyal subject to Spain was given the right to collect taxes from inhabitants of the area to an encomendero. it was a public office of collecting taxes from the inhabitants of the area.

Kinds of Encomiendas

1. Royal Encomienda King 2. Ecclesiastical Encomienda Church 3. Private Encomienda Private individual

Gov. Gen. Antonio de Ayala joined with Don Domingo Roxas (Ayala Corp.) Zobel-Ayala

Ayala Corporation 1834

Jaime Zobel Ayala

Negros Occidental: Benedicto, Montelibano, Ledesma,Yulo and Lopez

Tarlac: Jose Cojuangco ( Chinese carpenter buying rice and sugar lands) Phil. Revolution: largest landowner in Tarlac.

First Philippine Republic Local landed oligarchy dominates. Established allies with new colonial authorities.
1896 Katipunan Revolution major demand Land Reform

American Period
Natural resources for the whole world. Del Monte Philippines ( California Packing Company) Consolidation of the elite Pledge to protect the property rights of existing private property. ( just compensation) Issuance of Torrens Title (proof of ownership) Homestead (landless and the peasant granted 16 hectares for nominal fee).

Friars Land Act offered to tenants but failed ( uncultivated lands) Oligarch purchased the land.
Political System emerged between US colonial authority and Filipino oligarch.

Commonwealth Landlord and economic depression Widespread agrarian unrest Growing peasant movement 1935 Constitution empowered National Assembly for land redistribution ( owners received just compensation)

Quezon Government

Korondal Valley Allah Valley Mallig Plains (Isabela)

End of World War II Demands Focused Securing access to land

US AGRARIAN REFORM Japan Post war implemented liberal approach (Wolf Ladejinsky)
Means to achieve stability and provide relief to an impoverished peasantry.

Agrarian reform to counter communism

US not infavor of agrarian feudalism (Communist totalitarianism).

Ladejinsky land reform could not solve all the peasants problem. Struggle for satisfaction of basic needs Threat to world peace

Hayami: Redistribution can not be implemented in the Philippines Lack of competent government bureaucracy Absence of land records Weak tenant organization Technical expertise

Political choice of those who control state power. Urban business sector In favor or not with redistributive reform?

Marcos Authoritarian Agrarian Reform Combination of liberal & conservative approach. US influence to policies to protect economic interest.

Highlights of Authoritarian Agrarian Reform

Presidential Decree 27 Tenant 5 hectares ( non-irrigated) 3 hectares (irrigated) Landowners compensated ( average crop x 2.5%) Fixed rent for permanent crop

Land coverage: greater than 24 hectares (corn & palay) Landowner retain 7 hectares cultivate Samahang Nayon cooperative movement Masagana 99 credit cooperative

Creation of a strong citizenry

Evaluation of Marcos Agrarian Reform CLT ( Certificate of Land Transfer) not distributed Reform Bureaucracy ( patronage & corruption)

Beneficiaries gave up their rights over their lands.

DAR approach process of paper work

Oligarchy and landowner exist
Eduardo Cojuangco Roberto Benedicto Juan Ponce Enrile

No support from US for redistributive reform No threat by the peasant movement to overturn basic structure of the state.

Cabinet dominated Conservative reformist Reform : Productivity enhancement programmes No interest redistributive reform

1986 Philippine Constitution

Congress of the Philippines drafted Comprehensive Agrarian Reform (1988) Congressmen conservative approach

Agrarian Reform Program:

Objective
Tiller of the soil becomes the owner of the land he cultivates Improve socio-economic

Scope of CARL R.A. 6657

All alienable and disposable lands of public domain devoted or suitable for agriculture. All lands of the public domain in excess of the specific limits as determined by Congress. All other lands owned by government devoted or suitable for agriculture. All private lands devoted or suitable for agriculture.

Retention Limits 1. Landowner 5 hectares 2. Each child (15 yrs. old) 3 hectares 3. Actually tilling or directly managing the farm. Exemptions 1. Landowner (PD 27) retain the land. 2. Original homestead grantees/ Direct compulsory heirs

Beneficiaries of CARP

1. 2. 3. 4. 5. 6.

Agricultural lessees and share tenants Regular farm workers Seasonal farm workers Other farm workers Actual tillers or occupants of public lands Collectives or cooperatives of the above beneficiaries 7. Others directly working on the land.

Implementation Schedule
Phase I 1988-1992 Voluntary Offer of Sale used by Multinational Corp. Phase II private agricultural land more than 50 hectares Phase III 1992-1998

Phase III A excess of 24-50 hectares Phase III B excess of 5-24 hectares

Limitations of the Implementation

1. Garchitorena Scandal P3.8 M UCPB to Sharp P 62.7 M VOS

Barren and mountainous( Camarines Sur) All VOS cases suspended Transfer of all land valuation powers to Land Bank. Sec. Philip Juico 2. NDC Marubeni Land Prime agricultural land converted to industrial site w/ favorable court ruling Langkaan, Dasmarinas, Cavite Sec. Abad

3. Rigodon of DAR Secretaries Juico Gatchitorena Miriam Defensor Santiago Florencio Abad Benjamin Leong 4. Hacienda Luisita and Stock Option

Stock distribution P 33,000 per hectare (undervalued) Prevailing stock price P60,000 per hectare Pending agro-corporation w/ pending applications for stock distribution All stock transfer w/in 2 years upon the effectively of the law.

5. Supreme Court rulings 1989 & 1990 narrow the scope of land reform coverage E.g. Exemption of Homestead ( Mindanao Homestead under confusion) Alita vs. CA ( 112 SCRA 41) Lots obtained by homestead patents are exempted Association of Small Landowners in the Phils, Inc. vs. Secretary of Agrarian Reform (G.R.78742 July 14, 1989) Retention rights under PD 27 was not exercised. New retention rights RA 6657 applied. Transfer of ownership upon full payment of compensation to the owners.

Retentions PD 27 - 7 Hectares CARL 5 Hectares 6. Land transfer upon full payment 7. Exemption of livestock farms SC exemption was null and void 8. Land Valuation Problems 9. Fund Diversion and Bureaucratic scandals

Purchased of imported vehicles, firing and hiring of casuals, unethical behavior of DAR officials.

Benefit from CARP

Marcos 2% of 822,000 hectares rice and corn distributed

CARP 3.8 Million hectares out of 4.3 million hectares distributed 65 %

Pres. Arroyo extended implementation of R.A. 6657 CARP Extension and Reforms R.A. 9700 (CARPER) 1. DAR proceed to deliver support services 2. Congressional Oversight Committee monitor and determine problems of CARP, make necessary adjustments in its policies. 3. Implement clear policies for nonconversion. (agricultural to nonagricultural)

4. Gender-sensitive Agrarian Reform Rights of rural women to won and control land
5. Land Acquisition and distribution Ensure completion by June 14, 2014 Local government units exemption retention limit 6. DAR decision immediately executory no TRO ( temporary restraining order) against the implementation of CARP

7. Support services

subsidies
agrarian reform communities expected harvest, purchase orders, warehouse receipts can be used as collateral

Agrarian Reform is only a segment in the whole process of development.

Agrarian Reform should establish a point person to address environmental problems. Agrarian Reform is necessary but not sufficient. Agrarian Reform improved the lives of the Filipino peasants.

Decline and disappearance of Socialist System throughout the Soviet Bloc heralded a new era in international politics. Changes in international politics have impact on the Phil. and on the role of the US in the country.

Failure of Aquino government to implement agrarian reform and to overcome traditional clan politics both the military and radical left offer alternative paths for future. Landlessness and poverty continue to dominate the rural landscape in the Philippines. Call for redistributive reform continues to be heard throughout the archipelago.

July 5, 2011 Supreme Court DISMISSED. Section 31 of RA 6657 be declared NULL and VOID for being unconstitutional. Consequently, the stock distribution plan of petitioner HLI should likewise be declared NULL and VOID for being unconstitutional.

Accordingly, PARC Resolution Nos. 2005-32-01 dated December 22, 2005 and 2006-34-01 dated May 3, 2006 should be AFFIRMED in so far as they direct the implementation of compulsory coverage or mandated land acquisition scheme in Hacienda Luisita.

with the MODIFICATION that, pro hac vice(on particular occasion) due to considerations of fairness and equity, qualified farm worker-beneficiaries may waive their right to actually own the lands they till and stay as stockholders of petitioner HLI.

Motion for Clarification and Partial Reconsideration - HLI - DAR

Motion for Reconsideration

- Alyansa ng mga Mangagawang Bukid sa Hacienda Luisita (AMBALA)

Mallari, et al.

Issues Resolved 1. Whether or not in law or in equity it would be fair to distribute to the 6,296 farm worker beneficiaries (FWBs)the unspent and unused balance of the proceeds of sale of 500 hectares and 80.51 hectares of HLI? FWBs stock holders of HLI

2. Whether or not in law or in equity payment is considered just compensation that reckons on Nov. 21, 1989 approval of stock distribution and no actual taking of HLI? Improvements, expenses in the maintenance and preservation of land , rise in land prices or value of the property.

AMBALA 3. Whether or not voting option as stock holder rather than total distribution of land is in violation to the unconstitutionality of Sec. 31 R.A. 6657? 4. Whether or not RCBC is an innocent purchaser of 300 hectare property in HLI in question?

Supreme Court November 22, 2011 Resolution 1. Shares, benefits, proceeds of the sale of 500 hectares and 80.51 hec. SCLTEX lot and homelots already received by FWBs shall be respected with no obligation to refund or return them. Shares of stock issued to them will be cancelled and return to HLI and transfer shall be exempt from taxes, fees and charges.

4, 206 non-qualified FWBs shall remain as stockholders of HLI and not entitled to any share in the land to be distributed by DAR. HLI is directed to pay the original 6, 296 FWBs of the proceeds of the sale of 500 hectares amounting to P 13,330,511, 500.00 and shall deduct 3 % for the transfers of title, taxes, expenditures incurred by HLI.

DAR directed to engaged reputable accounting firm to audit HLI in determining if the proceeds of sale were actually used or spent for legitimate corporate purposes. Any unspent and unused balance and any disallowed expenditures as determined by the audit shall be distributed to the 6, 296 original FWBs.

HLI is entitled to just compensation for agricultural land that will be transferred to DAR to be reckoned from November 21, 1989

DAR and LBP are ordered to determine the compensation due to HLI. DAR shall submit compliance report after six (6) months from finality of this judgment.
Shall submit quarterly reports on the execution of this judgment within the first 15 days after the end of each quarter, until fully implemented.

Principles of Agrarian Reform

1. Equal Access to land basic productive resource.

2. Just compensation landowners based on fair market value.

Economic agriculture main industry

exports of agricultural products the major source of foreign exchange

Socio-cultural Aspects 1. Shift from dependence to self-subsistent (lead to increase of income)

2. Enhanced peace and stability of the community 3. Farmer-beneficiaries active participation in community leadership (local and national elections) 4. Promote social status improvement

Religious ownership of land ( God) stewards of the land (Man) Moral social justice for equitable distribution of land. Legal Constitutional mandates for agrarian reforms

Political solve imbalanced ownership of agricultural land.

Except (Justice Isagani Cruz)

In ancient mythology, Antaeus was a terrible giant who blocked and challenged Hercules for his life on his way to Mycenae after performing his eleventh labor. The two wrestled mightily and Hercules flung his adversary to the ground thinking him dead, but Antaeus rose even stronger to resume their struggle. This happened several

times to Hercules' increasing amazement. Finally, as they continued grappling, it dawned on Hercules that Antaeus was the son of Gaea and could never die as long as any part of his body was touching his Mother Earth. Thus forewarned, Hercules then held Antaeus up in the air, beyond the reach of the sustaining soil, and crushed him to death.

Mother Earth. The sustaining soil. The giver of life, without whose invigorating touch even the powerful Antaeus weakened and died. The elemental forces of life and death, of men and women who, like Antaeus need the sustaining strength of the precious earth to stay alive.

Land for the Landless is a slogan that underscores the acute imbalance in the distribution of this precious resource among our people.