AGRARIAN LAW and SOCIAL LEGISLATION Tenant Emancipation Law provided for the transfer of

lands primarily devoted to rice

CHAPTER 1: Preliminary Chapter and corn to tenants
Agrarian: “Ager” (latin) – a field, relating to land or to the PD 946 Reorganized the court of
Agrarian Relations
ownership or division of land
PD 1038 To strengthen the security of
Agrarian law: distribution of public agricultural lands and large tenure of tenants in non-rice or
estates, as well as the regulation of the relationship between corn agricultural lands
the landowner and farmer who works on the land. It embraces PD 251, 444, 1039, and 1817 Amended the code of Agrarian
all laws that govern and regulate the rights and relationship Reforms of the Philippines
over agricultural lands between landowners, tenants, lessees or Term of President Corazon Aquino
EO 228 Declaring full land ownership in
agricultural workers.
favor of beneficiaries under PD
Focus: Agrarian reform whose thrust is the redistribution of 27
agricultural lands. EO 229 Providing mechanics for EO 228
for its implementation
Primary Objective: break up agricultural lands and transform Proclamation No: 131 Instituting a comprehensive
them into economic-size farms to be owned by farmers agrarian reform program
themselves to uplift their socio-economic status. Comprehensive Agrarian Law of To cover all public and private
1988 agricultural lands
Social Legislation: emphasis is on the aspect of public good and RA 7881,7905, 8532, 9700 To amend certain provisions
social welfare. These are laws enacted under the social justice agrarian reform law of 1988
clause of the constitution. (Art. XIII, Secs. 1-16)

HISTORY OF PHILIPPINE AGRARIAN LAWS Agrarian Reform: Not confined to distribution of lands to
Spanish Regime landless farmers and regular farmworkers. It includes a) Labor
Civil Code Special provisions for rural leases Administration; b) profit-sharing; c) stock distribution
governed the relationship between
landowners and tenants Comprehensive Agrarian Reform Law of 1988: basis for the
American Regime implementation of CARP. It embodies the state policy of
Philippine Rice Share Regulated the relationship between processing the program aimed at liberating the vast potential
Tenancy Act landlords and tenants on rice lands. wealth of Philippine agriculture by giving the majority of
Sugar Tenancy Act Regulated the relationship between Filipinos a real and rightful stake in the land.
landlords and tenants on lands
planted to sugarcane Comprehensive Agrarian Reform Program: A social justice
Commonwealth Period poverty alleviation program which seeks to empower the lives
Commonwealth Act 53 Recognized the testimony of the of agrarian reform beneficiaries through equitable distribution
tenant as prima facie evidence of the and ownership of the land based on the principle of land to the
terms of a tenancy contract not filler.
reduced in writing in a language
known to him *The Comprehensive Agrarian Reform Law of 1988 applies only
Commonwealth Act 178 Amend the provisions of PRST to agricultural lands. It does not apply to lands classified as F-
Commonwealth Act 271 Amend the provisions of STA CRIM.
Commonwealth Act 461 To provide security of tenure to
agricultural tenants *The Comprehensive Agrarian Reform Law of 1988 is not
Commonwealth Act 608 Amended CA 461 unconstitutional because it is a valid exercise of police power.
After the grant of independence Agricultural Land: 1) Devoted to agricultural activity; 2) Not
RA 34 Amended PRST introducing changes classified as mineral or forest by the DENR and; 3) prior to June
in crop division
15, 1988 not classified for C R I use under local government
Agricultural Tenancy act of Repealed all the earlier tenancy laws
town plan and zoning ordinance as approved by HLURB.
the Philippines except the STA
RA 2263 Amended RA 34 NATALIA REALTY, INC V. DAR (GR 103302)
Agriculture Land Reform Abolished share tenancy and in its
Code place instituted the agricultural Issue: Whether CARL covers the undeveloped portions of the
leasehold system Natalia Realty, Inc. properties.
Code of Agrarian Reforms Amended the ALRC
of the Philippines Ruling: NO. CARL does not cover lands that are not
After Declaration of Martial Law agricultural.
Section 2: Declaration of Principles and State Policies (CARL) representation of persons in negotiating,
fixing, maintaining, changing or seeking to
 Primary objective of agrarian reform (id) arrange terms or conditions of such tenurial
 CARP is founded on the right of farmers and regular agreements.
farmworkers, who are landless, to own directly or Idle or Abandoned Any agricultural land not cultivated, tilled or
collectively the lands they till or in the case of other Lands developed to produce any crop nor devoted
farmworkers, to receive a just share of the fruits to any specific economic purpose
thereof. continuously for a period of three years
immediately prior to the receipt of notice of
Owner-Cultivatorship: state of a person who not only provides acquisition. It does not include land which
capital and management but also personally cultivates his own has become unproductive by reason of force
land with the aid of his immediate family and household. majeure or any other fortuitous event
provided that prior to such event, such land
Economic Family-Size Farm: An area of farm land that permits was previously used for agricultural or other
efficient use of labor and capital resources of the farm family economic purpose.
and will produce an income sufficient to provide a modest Farmer A natural person whose primary livelihood is
standard of living to meet a farm family’s needs for food, cultivation of land or the production of
clothing, shelter and education with possible allowance for agricultural crops, livestock, and/or fisheries
payment of yearly installments on the land and reasonable either by himself or primarily with the
reserves to absorb yearly fluctuations in income. assistance of his/her immediate farm
household, whether the land is owned by
Social Function of Land: Agricultural landowners have the him/her or by another person under a
obligation to cultivate directly or through labor administration leasehold or share tenancy agreement or
the lands they own and thereby make the land productive. arrangement with the owner thereof.
Therefore property ownership and economic activity are Farmworker A natural person who render services for
always subject to the duty of the state to promote distributive value as an employee or laborer in an
justice and intervene when the common good requires. agricultural enterprise or farm regardless of
whether his compensation is paid on a daily,
Section 3: Definitions weekly, monthly or pakyaw basis. It included
an individual whose work has ceased in
Agrarian Reform Redistribution of lands regardless of crops or connection with, a pending agrarian dispute
fruits produced to farmers and regular and who has not obtained a substantially
farmworkers who landless irrespective of equivalent and regular farm employment.
tenurial arrangement, to include totality of Regular A natural person who is employed on a
factors and support services designed to lift Farmworker permanent basis by an agricultural
the economic status of the beneficiaries and enterprise or farm.
all other arrangements alternative to the Seasonal A natural person who is employed on a
physical redistribution of lands, such as Farmworker recurrent, periodic or intermittent basis by
production or profit-sharing, labor an agricultural enterprise or farm whether as
administration, and the distribution of a permanent or a non-permanent laborer.
shares of stocks, which will allow Other farmworker Those that don’t fall under para. g,h,I
beneficiaries to receive a just share of the Cooperatives Organizations composed primarily of small
fruits of the lands they work. agricultural producers, farmers,
Agriculture, The cultivation of the soil, planting of crops, farmworkers or other agrarian reform
Agricultural growing of fruit trees, including the beneficiaries who voluntarily organize
Enterprise or harvesting of such farm products and other themselves for the purpose of pooling land,
Agricultural Activity farm activities and practices performed by a human, technological, financial or other
farmer in conjunction with such farming economic resources, and operated on the
operations done by persons whether natural principle of one member, one vote. A
or juridical. juridical person may be a member of a
Agricultural Land Land devoted to agricultural activity as cooperative with the same rights and duties
defined in this act and not classified as F- as a natural person.
CRIM Rural Women Women who are engaged directly or
Agrarian Dispute Any controversy relating to tenurial indirectly in farming and or fishing as their
arrangements, whether leasehold, tenancy, source of livelihood whether paid, unpaid,
stewardship or otherwise, over lands regular, seasonal, or in food preparation
devoted to agriculture including disputes managing the household, caring for the
concerning farmworkers’ association or children and other similar activities.
Chapter 2: Coverage  He has the right to retain not more than five hectares
of his landholdings
Section 4: Scope:
 The retained area need not be personally cultivated by
“CARL shall cover regardless of tenurial arrangement and him. It can be cultivated indirectly through labor
commodity produced, ALL public and private agricultural lands administration.
as provided in Proc. 131 and EO 229 including other lands of  Said right of a deceased landowner may be exercised
public domain suitable for agriculture PROVIDED: that by his heirs upon proving that the decedent
landholdings of landowners with a total area of five hectares landowner had manifested during his lifetime and
and below shall NOT be covered for acquisition and distribution before August 23, 1990- his intention to exercise his
to qualified beneficiaries.” right of retention.

Lands Covered: Constitutional basis: The State shall, by law, undertake an

agrarian reform program… subject to such priorities and
1. All public and private agricultural lands reasonable retention limits as the Congress may prescribe, (Art.
2. Other lands of the public domain suitable for XIII, Section 4)
agriculture.
Rationale for grant of retention rights: it serves to mitigate the
Lands NOT covered: effects of compulsory land acquisition by balancing the rights
1. Private lands with a total area of 5 hectares and below of the landowner and the tenant and by implementing the
2. Land actually, directly and exclusively used for parks, doctrine that social justice was not meant to perpetrate an
wildlife, forest reserves, reforestation, fish sanctuaries injustice against the landowner.
and breeding grounds, watersheds and mangroves When to exercise retention right:
3. Private lands actually, directly and exclusively used for
prawn farms and fishponds Circumstance When to exercise
4. Lands actually, directly and exclusively used and found Before receipt of notice of ANYTIME
necessary for: coverage
a) National Defense Upon receipt of notice of Within 60 days upon receipt
b) School sites and campuses coverage (in cases of
c) Experimental farm stations operate for compulsory acquisition)
educational purposes In cases of voluntary offer to Simultaneously at the time
sell, voluntary land transfer of offer for sale or transfer
d) Seeds and seedling research ad pilot production
or direct payment
centers
e) Church sites and convents appurtenant thereto
f) Mosque sites and Islamic centers appurtenant Right to choose retention area: The landowner has the right to
thereto choose the area to be retained. This area shall be compact and
g) Communal burial grounds and cemeteries contiguous and shall be least prejudicial to the entire
h) Penal colonies and penal farms actually worked landholding and the majority of the farmers therein.
by the inmates
i) Research and quarantine centers **Landowners choice of the area shall prevail so long as it is
j) All lands with 18% slope and over except those compact and contiguous and it does not exceed the retention
already developed. ceiling of 5 hectares.

Section 5: Schedule of Implementation Can a landowner who has already exercised his retention rights
under PD 27 be entitled to the retention rights under CARL as
“The distribution of all lands covered by this act shall be amended?
implemented immediately and completed within ten years from
the effectivity thereof.” NO. but the landowner choose to retain 5 hectares in his other
agricultural lands under the CARL, the seven hectares
**RA 9700 section 5 extended the implementation of CARL, previously retained by him under the tenant emancipation law
particularly the acquisition and distribution of agricultural lands shall be immediately placed under the coverage of the CARL
to June 30, 2014.
Can spouses retain 5 hectares each under the CARL?
Section 6: Retention Limits
It depends. If the property regime is CPG or AC then the spouses
Notes: can retain only five hectares. On the other hand if the property
regime is separation of property, then the spouses can retain
Retention Right of the Landowner:
five hectares each.
Can a landowner exercise his right of retention over the land of the landowner after earlier dispositions totaling an aggregate
which has already been covered by an emancipation patent or of five (5) hectares can no longer be part of his retention area
certificate of land ownership award? and therefore shall be covered under CARP.

Yes. The issuance of an EP of COLA is not an absolute bar to the **Declared null and void for being ultra vires. (see DAR v.
landowner from retaining the area covered thereby. If the Carriedo)
landowner is deprived of his right, he may file a petition for
Department of Agrarian Reform v. Carriedo
cancellation of EP or COLA that may have been issued to the
tenants. The SC rejected DAR’s argument. Their reliance on DAR AO 05-
06 is misplaced. As will be seen below, nowhere in the relevant
**EP or COLA may be cancelled if the land covered is later
provisions of RA No. 6657 does it indicate that a multiple or
found to be part of the landowner’s retained area.
series of transfers/sales of land would result in the loss of
Waiver of Retention Right: Done by any of the following acts or retention rights. Neither do they provide that the multiple or
omissions: series of transfers or sales amounts to the waiver of such right.

1. Failure to manifest an intention to exercise his right to “Under the facts of this case, the reasonable reading of these
retain within 60 calendar days from receipt of notice three provisions in relation to the constitutional right of
of coverage retention should be that the consequence of nullity pertains to
2. Failure to state such intention upon offer to sell or the area/s which were sold or owned by the transferee in the
application under the voluntary land transfer or direct excess of the 5 hectare land ceiling.
payment schemes
In Perez v. LPG Refillers Association of the Philippines, Inc., 83
3. Execution of any document stating that he expressly
this Court said that for an administrative regulation to have the
waives his right to retain
force of a penal law, (1) the violation of the administrative
4. Execution of “Landowner Tenant Production
regulation must be made a crime by the delegating statute
Agreement and Farmer’s Undertaking” or “Application
itself; and (2) the penalty for such violation must be provided
to Purchase and Farmer’s Undertaking” covering
by the statute itself.
subject property
5. Failure to manifest an intention to exercise his right to Sections 6, 70 and 73 (a) of RA No. 6657 clearly do not provide
retain upon filing an application for voluntary land that a sale or disposition of land in excess of 5 hectares results
transfer/ direct payment scheme or voluntary offer to in a forfeiture of the five hectare retention area. Item no. 4 of
sell DAR AO 05-06 imposes a penalty where none was provided by
6. Execution and submission of any document indicating law.
that he is consenting to the CARP coverage of his
entire landholding Criminal Violations: CARL Prohibits:
7. Performance of any act constituting estoppel by
1. Persons from owning or possessing agricultural lands
laches, warranting a presumption that he abandoned
in excess of total retention limits or award ceilings for
his right or declined to assert it.
the purpose of circumventing the provisions of the
Item no. 4 of the statement of Policies in Department of Agrarian law.
Reform AO No. 5, series of 2006 2. Responsible government officers from unjustifiable,
willfully and maliciously depriving a landowner of his
“Section 4. Where the transfer/sale involves more than the five retention rights.
(5) hectares retention area, the transfer is considered violative
of Sec. 6 of R.A. No. 6657. If the retention area chosen by the landowner is tenanted, what
happens to the tenant?
In case of multiple or series of transfers/sales, the first five (5)
hectares sold/conveyed without DAR clearance and the The tenant may choose whether to remain therein or be a
corresponding titles issued by the Register of Deeds (ROD) in the beneficiary in the same or agricultural land with similar or
name of the transferee shall, under the principle of estoppel, be comparable features. He must exercise his choice within one
considered valid and shall be treated as the transferor/s' year from the time the landowner manifests his choice of the
retained area but in no case shall the transferee exceed the five- area for retention.
hectare landholding ceiling pursuant to Sections 6, 70 and 73(a)
**Tenant refers not to just any settler on the land. There must
of R.A. No. 6657. Insofar as the excess area is concerned, the
be a landlord-tenant relationship. This relationship can be
same shall likewise be covered considering that the transferor
determined by the following:
has no right of disposition since CARP coverage has been vested
as of 15 June 1988. Any landholding still registered in the name
 1. The parties are the landowner and the tenant or 4. Keep his farm and growing corps attended to during
agricultural lessee the work season
2. The subject matter off the relationship is an 5. Notify the agricultural lessor at least 3 days before the
agricultural land date of harvesting or, whenever applicable of
3. There is consent between the parties to the threshing
relationship 6. Pay the lease rental to the agricultural lessor when it
4. The purpose of the relationship is to bring about falls due.
agricultural production
Terms of the Lease
5. There is personal cultivation on the part of the tenant
or agricultural lessee The agricultural leasehold relation once established continues
6. The harvest is shared between the landowner and until such leasehold relation is extinguished through any of the
tenant or agricultural lessee. following means:
What is the tenant chooses to remain in the retained area? 1. Abandonment or voluntary surrender of the
landholding by the lessee
He will no longer be considered a tenant. He will be considered
2. Absence of successor in the event of death or
as an agricultural lessee and be disqualified as an agrarian
permanent incapacity of the lessee.
reform beneficiary.
The leasehold relation is not necessarily extinguished by death
As an agricultural lessee he will be entitled to:
or incapacity of the lessee. If the lessee dies or is permanently
1. Peaceful possession and enjoyment of the land disabled, the leasehold continues between the AL and the
2. Manage and work on the land in a manner and person who can cultivate the landholding personally which the
method of cultivation and harvest which conform to lessor can choose from among the following
proven farm practices
1. Surviving spouse
3. Mechanize all or any phase of his farm work
2. Eldest direct descendant by consanguinity
4. Deal with millers, processors, and attend to the
3. The next eldest descendant or descendants in the
issuance of quedans and warehouse receipts for the
order of their age
produce due him
5. Be afforded a homelot The leasehold is not terminated by mere expiration of the term
6. Be indemnified for the cost and expenses incurred in or period in a leasehold contract nor is it terminated by the
the cultivation, planting or harvesting and other transfer of ownership or legal possession of that landholding. In
expenses incidental to the improvement of his crop in that case the transferee becomes the AL
case he surrenders or abandons his landholding for
just cause or ejected therefrom Effect if tenant chooses to be a beneficiary: he loses his right to
7. Buy the agricultural landholding under reasonable be a lessee of the land retained by the landowner.
terms and conditions in case the agricultural lessor
Children of the landowners are entitled to three hectares each
decides to sell the same
8. Redeem the landholding at a reasonable price and If the landowner owns more than five hectare of agricultural
consideration in case the agricultural lessor sold the land, the excess area may be awarded to the children of the
same to a third person without his knowledge. landowner to the extent of three hectares provided:

His obligations are: a. The child is at least 15 years old

b. The child is actually tilling the land or directly
1. To cultivate and take care of the farm, growing crops,
managing the farm
and other improvements on the landholding as a good
father of a family and perform all the work therein in *A qualified child who owns less than 5 hectares of agricultural
accordance with proven farm practices land may be awarded by his parent’s landholding as long as is
2. Inform the agricultural lessor within a reasonable time does not exceed five hectares when added to the agricultural
of any trespass committed by third persons upon the land he already owns.
farm without prejudice to his direct action against the
trespasser Lands awarded to qualified children of landowners cannot be
3. Take reasonable care of the work animals and farm sold, transferred or conveyed for a period of 10 years except:
implements delivered to him by the agricultural lessor 1. Through hereditary succession
and see that they are not used for purposes other than 2. To the government
those intended or used by another without the 3. To the Land Bank of the Philippines
knowledge and consent of the agricultural lessor
 4. To other qualified beneficiaries. This provision lays down the scheme for the final acquisition
and distribution of all remaining agricultural lands during the
**Children or spouse of the transferor can repurchase the land
five-year extension period up to June 30, 2014 in following the
from the government or land bank within 2 years from the date
order of priority.
of transfer
1. Lands with an area of more than 50 hectares to be
Right of Homesteaders via-a’-vis right of tenants
completed by June 30, 2012, specifically
The constitution and CARL respect the superiority of the rights a. Those already subjected to a notice of coverage
of homesteaders over the rights of tenants. on or before December 10, 2008
b. Rice and corn lands
Owners or their direct compulsory heirs of lands acquired c. Idle or abandoned lands
through homestead grants or free patents under CA 141 are d. Private lands voluntarily offered by the owners for
entitled to retain the entire area even if it exceeds 5 hectares agrarian reform
as long as: e. Lands foreclosed by government financial
institutions
1. They are owners of the original homestead at the time
f. Lands acquired by the PCGG
of the approval of the CARL (June 15, 1988)
g. All other lands owned by the government
2. They continue to cultivate the same.
devoted to or suitable for agriculture
Criminal violation: CARL prohibits forcible entry or illegal 2. Lands with an area of 24 hectares up to 50 hectares to
detainer by persons who are not qualified beneficiaries under be completed by June 30, 2013, specifically
the law, if done to avail of the rights and benefits of the agrarian a. All alienable and disposable public agricultural
reform program lands
b. All arable public agricultural lands under agro
Section 6-A: Exception to Retention Limits forest, pasture and agricultural leases already
LGUs acquiring private agricultural lands by expropriation or cultivated and planted to crops in accordance
other modes of acquisition to be used for actual, direct and with section 6, Article XIII of the constitution
exclusive public purposes, shall not be subject to the five (5)- c. All public agricultural lands which are to be
hectare retention limit under this Section and Sections 70 and opened for new development and resettlement
73(a) of Republic Act No. 6657. d. All private agricultural lands which have already
been subjected to notice of coverage issued on or
If an LGU expropriates a private agricultural land for actual, before December 10, 2008
direct, and exclusive public purposes, the DAR should first e. All remaining private agricultural lands regardless
subject it to agrarian reform coverage. as to whether they have been subjected to
notices of coverage
Steps:
3. Lands with an area of more than 10 hectares up to 24
1. The national government through DAR acquires the hectares, to be complete by June 30, 2013
land 4. Lands from the retention limit up to be completed by
2. They pay just compensation to the landowner June 30, 2014
3. DAR will distribute the land to the agrarian reform
*Only farmers (tenants or lessees) and regular farmworkers
beneficiaries
actually tilling the lands (certified under other by the BARC and
4. LGU will expropriate the land and pay the agrarian
attested under oath by the landowners) can be considered
reform beneficiaries the just compensation
qualified beneficiaries
Section 6-B: Review of limits of land size:
The intended beneficiary shall state under oath before the
Within 6 months from the effectivity of RA 9700, DAR shall judge that she is willing to work on the land to make it
submit a comprehensive study on the land size appropriate for productive and to assume the obligation of paying the
each type of crop to congress for a possible review of the limits amortization for the compensation of the land and the land
of land sizes provided in the act. taxes thereon

This provisions is an implied recognition that the uniform Section 8: Multinational Corporations
setting of 5 hectare limit for all agricultural landholding may not
Agricultural lands leased, held or possessed by multinational
be feasible considering the economic difference for each type
corporations are also subject to compulsory acquisition and
of agricultural product.
distribution. The land shall be distributed directly to the
Section 7: Priorities individual worker-beneficiaries.
If it is not economically feasible and sound to divide the land, prevent erosion and adverse effects on the lowlands
the individual worker-beneficiaries shall form a worker’s and streams.
cooperative or association which will deal with the corporation  Lands actually, directly and exclusively used and found
by way of lease or growers agreement and other legitimate necessary for school sites and campuses are exempted
purposes. from the coverage of agrarian reform. DAR has no
right to substitute its judgment or discretion for that
Section 9: Ancestral Lands
of the school. (Central Mindanao University v. DAR
Ancestral Lands: Lands of public domain that have been In open, Adjudication Board)
continuous, exclusive and notorious occupation and cultivation  The Secretary of Agrarian Reform has the jurisdiction
by members of the National Cultural Communities by and authority to exempt or exclude a property from
themselves or through their ancestors, under bona fide claim the coverage of the agrarian reform program.
of acquisition of ownership according to their customs and
Section 11: Commercial Farming
traditions for a period of at least 30 years before the date of
approval of PD 410  Commercial Farms: lands devoted to 1) salt beds, 2)
fruit farms, 3) orchards, 4) vegetable and cut flower
 These lands are exempted from the coverage of the
farms, 5) cacao, coffee and rubber plantations.
agrarian reform program. The CARL recognizes and
respects the system of land ownership, land use, and Implementation is deferred on commercial farms for 10 years
the modes of settling land disputes of all indigenous
From effectivity of CARL (June For farms already existing when
cultural communities or indigenous peoples, in line 15, 1988) the law took effect
with the principles of self-determination and From first year of commercial For new farms
autonomy production and operation
 In AUTONOMOUS REGIONS, the respective  Commercial Farms may be acquired through:
legislatures may enact their own laws on ancestral 1. Voluntary offer to sell
domain subject to the provisions of the constitution 2. Compulsory Acquisition
and the principles enunciated in the CARL and other 3. Direct Payment scheme
national laws.  Commercial Farms may be distributed individually or
collectively. Individual beneficiaries are entitled to
Section 10: Exemptions and Exclusions
three hectares each or a minimum of one hectare
 The land classification embodies in the tax declaration each, if the land is not sufficient to accommodate
is NOT conclusive. It is not the sole basis of land them.
classification. Even if the tax declaration classifies the The following order of priority shall be observed in the
land as agricultural, such classification is not distribution:
irrefutable. (Republic v. CA; GR: 139592)
Agricultural lessees and
 Lands classified as non-agricultural prior to the
share tenants
effectivity of the CARL is not covered. (Valid
Regular farmworkers A natural person who is employed
reclassification of the land from agricultural to non- on a permanent basis by an
agricultural by a duly authorized government agency agricultural enterprise or farm
before June 15, 1988. Seasonal farmworkers A natural person who is employed
 Lands with at least 18% slope are exempted to prevent on a recurrent, periodic or
adverse effects on the lowlands and streams resulting intermittent basis by an agricultural
from soil erosion. That is why they are considered as enterprise or farm whether
permanent forest or forest reserves regardless of the permanent, or a non-permanent
condition of the vegetative cover, occupancy or use of laborer
any kind, and therefore, not alienable or disposable. Other farmworkers Farmworkers who do not fall under
NOTE THAT: if it has been previously classified as the concepts of farmworkers,
alienable or disposable, but not yet titled, it shall be regular farmworkers, and seasonal
farmworkers as defined under the
reverted to public forest category. BUT if it has been
CARL
covered by an approved public land application or
Actual tillers occupants of
occupied openly, continuously, adversely and publicly
public lands
for 30 years or more as of the effectivity of the forestry
Collectives or cooperatives Refer to organizations composed
reform code, it shall remain alienable or disposable of the above-beneficiaries primarily of small agricultural
PROVIDED it is kept in a vegetative state sufficient to producers, farmers, farmworkers or
other agrarian reform beneficiaries
 who voluntarily organize controls the farm operation within an
themselves for the purpose of agreed period of time not exceeding 10
pooling land, human, technological, years, extendible by agreement.
financial or other economic Contract- Arrangement whereby the agrarian reform
resources and operated under the Growership beneficiaries or their cooperative produce
principle of one member, one vote. Arrangement certain crops for an investor or agribusiness
*A juridical person may be a firm which buy the produce at prearranged
member. terms.
Others directly working on Management Arrangement whereby the agrarian reform
the land Contract beneficiaries or their
cooperative/association hire the services of
the landowner or investor to manage and
*if it is not economically feasible and sound to divide the land, operate the farm in exchange for fixed
the beneficiaries will be obliged to form a workers’ cooperative wages or commission.
or association. Build-Operate- An arrangement whereby the project
Transfer Scheme proponent undertakes the financing and
**Infrastructure facilities and improvements which are
construction of a given infrastructure
necessary and beneficial to the operations of the farm, facility and the operation and maintenance
including buildings, roads, machinery, receptacles, instruments thereof for an agreed period of time not
or implements permanently attached to the land may be exceeding 25 years subject to extension.
subject to acquisition, as determined by the DAR upon the *Owners of commercial farms, whether individual or corporate
recommendation of the agrarian reform beneficiaries. are also entitled to the retention rights granted by section 6 of
the CARL.
Qualifications Disqualifications
18 years old at the time of filing Farmworkers retired from Chapter 2: Improvement of Tenurial and Labor Relations
of the application as service whether optional or
beneficiary voluntary Section 12: Determination of Lease Rentals
Willingness, aptitude and Farmworkers who have
When a tenant chooses to remain in the portion retained by the
ability to cultivate and make resigned from their
the land productive employment with the farm landowner, he will no longer be considered a tenant but a
Employed in the commercial Farmworkers who have been lessee (Section 6). In order to protect the economic status of
farm between June 15, 1988 dismissed for cause the farmer, the DAR is empowered to determine and fix the
and June 15, 1998 or upon lease rental.
expiration of the deferment.
For lands devoted to rice and 25% of the average normal
*Priority will be given to thoseFarmworkers, lessees or tenants
other crops harvest after deducting the
who have worked the longest, who have committed a violation
amount used or seeds and
on the land continuously of agrarian reform laws and
the cost off harvesting or
regulations.
threshing. *if there has been
Note: Beneficiaries of commercial farms have the full freedom:
no normal harvests, then the
1. To choose the type of agribusiness venture agreement estimated normal harvest
that maintain the economic viability of the farm during the 3 agricultural
2. To market their products or enter into marketing years immediately preceding
the date the leasehold was
arrangements
established.
3. To avail of the services or assistance of individuals,
For Sugarcane lands 25% of average nrmal havest
associations, or NGOs in negotiating for the most
less the value of the cost of
advantageous agribusiness venture agreement, seeds/cane points,
enterprise development and capability building. harvesting, loading, hauling
and/or trucking fee, cost of
Type of Agribusiness Venture Arrangements
processing
Joint Venture A company is organized and co-owned by
For coconut lands 25% of the average normal
Arrangement an investor and the agrarian reform
harvest for a specific area for
beneficiaries through their cooperative or
the preceding three
association.
calendar years less the value
Lease Scheme whereby the agrarian reform
of production cost.
Arrangement beneficiaries through their cooperative or
association enter into a contract of lease
with the landowner or investor. The lessee
Section 13: Production-Sharing Plan A copy of the registry or list of all potential CARP beneficiaries
in the barangay shall be posted in the barangay hall, school or
This provision that obliges the establishment of production-
other public buildings in the barangay where it shall be open to
sharing plan applies only to the ff:
inspection by the public at all reasonable hours.
1. Farms operating under a production venture, lease,
 The purpose of this is to develop a databank of
management contract or other similar arrangement
potential and qualified beneficiaries for the effective
2. Farms leased or operated by multinational
implementation of the ARP
corporations
3. Commercial farms Chapter 5: Land Acquisition

Chapter 4: Registration Section 16: Procedure for Acquisition and Distribution of

Private Lands
Section 14: Registration of Landowners
(a) After having identified the land, the landowners and the
Within one hundred eighty (180) days from the effectivity of
beneficiaries, the DAR shall send its notice to acquire the land
this Act, all persons, natural or juridical, including government
to the owners thereof, by personal delivery or registered mail,
entities, that own or claim to own agricultural lands, whether in
and post the same in a conspicuous place in the municipal
their names or in the name of others, except those who have
building and barangay hall of the place where the property is
already registered pursuant to Executive Order No. 229, who
located. Said notice shall contain the offer of the DAR to pay a
shall be entitled to such incentives as may be provided for the
corresponding value in accordance with the valuation set forth
PARC, shall file a sworn statement in the proper assessor's
in Sections 17, 18, and other pertinent provisions hereof.
office in the form to be prescribed by the DAR, stating the
following information: (b) Within thirty (30) days from the date of receipt of written
notice by personal delivery or registered mail, the landowner,
(a) the description and area of the property;
his administrator or representative shall inform the DAR of his
(b) the average gross income from the property for at least acceptance or rejection of the offer.
three (3) years;
(c) If the landowner accepts the offer of the DAR, the Land Bank
(c) the names of all tenants and farmworkers therein; of the Philippines (LBP) shall pay the landowner the purchase
price of the land within thirty (30) days after he executes and
(d) the crops planted in the property and the area covered by delivers a deed of transfer in favor of the Government and
each crop as of June 1, 1987; surrenders the Certificate of Title and other monuments of title.
(e) the terms of mortgages, leases, and management contracts (d) In case of rejection or failure to reply, the DAR shall conduct
subsisting as of June 1, 1987, and summary administrative proceedings to determine the
compensation for the land by requiring the landowner, the LBP
(f) the latest declared market value of the land as determined
and other interested parties to submit evidence as to the just
by the city or provincial assessor.
compensation for the land, within fifteen (15) days from the
Section 15: Registration of Beneficiaries receipt of the notice. After the expiration of the above period,
the matter is deemed submitted for decision. The DAR shall
The DAR in coordination with the Barangay Agrarian Reform
decide the case within thirty (30) days after it is submitted for
Committee (BARC) as organized in this Act, shall register all
decision.
agricultural lessees, tenants and farmworkers who are qualified
to be beneficiaries of the CARP. These potential beneficiaries (e) Upon receipt by the landowner of the corresponding
with the assistance of the BARC and the DAR shall provide the payment or, in case of rejection or no response from the
following data: landowner, upon the deposit with an accessible bank
designated by the DAR of the compensation in cash or in LBP
(a) names and members of their immediate farm household;
bonds in accordance with this Act, the DAR shall take
(b) owners or administrators of the lands they work on and the immediate possession of the land and shall request the proper
length of tenurial relationship; Register of Deeds to issue a Transfer Certificate of Title (TCT) in
the name of the Republic of the Philippines. The DAR shall
(c) location and area of the land they work; thereafter proceed with the redistribution of the land to the
qualified beneficiaries.
(d) crops planted; and
(f) Any party who disagrees with the decision may bring the
(e) their share in the harvest or amount of rental paid or wages
matter to the court of proper jurisdiction for final
received.
determination of just compensation
Compulsory Acquisition: A mode off land acquisition whereby in cash and land bank bonds and not by trust account.
the government acquires private agricultural lands under the (Land Bank of the Philippines v. Spouses Avancena)
procedure described in section of the CARL.

Process:

1. IDENTIFICATION by the DAR of the land, landowner

and beneficiary (See AO No. 7 Series of 2011)
2. NOTICE by the DAR to the landowner about the
compulsory acquisition and the price offer through
the following means.
a. Personal notice or by registered mail
b. Posting of the notice in a conspicuous place in the
barangay hall and municipal hall where the land is
located.
3. REPLY by the landowner about his acceptance or
rejection of the offered price.
a. If the landowner accepts the offered price—the
land bank will pay the landowner within 30 days
from execution and delivery of deed of transfer
b. If the landowner rejects the offer—the DAR will
determine the just compensation through
summary administrative proceeding.
c. If the landowner disagrees with the decision of
the DAR, he may bring the matter to the regular
courts of justice for final determination of just
compensation.
4. TAKING of immediate possession of the land by the
DAR.
a. If the landowner receives the corresponding
payment or
b. If the landowner does not respond to the notice
of acquisition.
5. REQUEST by the DAR to the Register of Deeds to issue
a TCT to the Republic of the Philippines.
6. DISTRIBUTION of the land to the qualified
beneficiaries.

 TWO notices are required for validity of

implementation.
a. Notice of coverage under DAR AO No. 7, series of
2011 (To comply with the requirements of the
Administrative due process)
b. Notice of acquisition under section 16 of the CARL
 Failure of the agencies involved to comply with proper
procedure should be treated as a violation of
constitutional due process and should be deemed
arbitrary, capricious, whimsical and tainted with grave
abuse of discretion.
 Title to the expropriated property shall pass from the
owner to the expropriator only upon full payment of
just compensation (Land Bank of the Philippines v.
Dumlao)
 Opening a trust account does not constitute payment
because the law requires just compensation to be paid