THE COMPREHENSIVE AGRARIAN REFORM LAW Repu blic Act No. 6657 , ! "e # $ e $ I. I#t%o $u c ti o # A. Co#!tituti o # l & !i!

1. A%ticle II' Sectio # () : The State development and agrarian reform. shall promote comprehensive rural

2. A%ticle *II' Sectio # ) : x x x The State shall promote indus trialization and full employment ased on sound agricultural development and agrarian reform, x x x !. A%ticle *III' Sectio # + : x x x The State shall regulate the relations et"een "or#ers and employers, recognizing the right of la or to its $ust share in the fruits of production and the right of enterprises to reasona le returns on in vest% ments, and to expansion and gro"th. &. A%ticle *III' Sectio # , : The State shall, y la", underta#e an agrarian reform program founded on the rights of farmers and regular farm"or#ers, "ho are landless, to o"n directly or collectively the lands they till or, in the case of other farm"or#ers, to receive a $ust share of the fruits thereof. To this end, the State shall encourage and underta#e the $ust distri ution of all agricultural lands, su $ect to such priorities and reasona le retention limits as the 'ongress may prescri e, ta#ing into account ecological, developmental, or e(uity consider% ations, and su $ect to the payment of $ust compensation. In determining retention limits, the State shall respect the right of small lando"ners. The State shall further provide incentives for voluntary land%sharing. ). A%ticle *III' Sectio # 5 : The State shall recognize the rights of farmers, farm"or#ers, and lando"ners, as "ell 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 ade(uate financial, production, mar#eting, and other support services. +. A%ticle *III' Sectio # 6 : The State shall apply the principles of agrarian reform or ste"ardship, "henever applica le in accordance "ith la", in the disposition or utilization of other natural resources, including lands of the pu lic domain under lease or concession suita le to agriculture, su $ect 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"or#ers in its o"n agriculture estates "hich shall e distri uted to them in the manner provided y la". ,. A%ticle *III' Sectio # - : The State shall provide incentives to lando"ners to invest the proceeds of the agrarian reform program to promote industrialization, employment creating, and privatization of pu lic sector enterprises. -inancial instruments used as payment for their lands shall e honored as e(uity in enterprises of their choice.

.. .ecl % ti o # o/ P%i#ciple !

#$ Policie! /Section 20

It is the policy of the State to pursue a 'omprehensive Agrarian 1eform 2rogram 3'A124. The "elfare of the landless farmers and farm"or#ers "ill receive the highest consideration to promote social $ustice and to move the nation to"ard sound rural development and industrialization, and the esta lishment of o"ner cultivatorship of economic%size farms as the asis of 2hilippine agriculture. The State shall promote industrialization and full employment ased on sound agricultural development and agrarian reform, through industries that ma#e full and efficient use of human and natural resources, and "hich are competitive in oth domestic and foreign mar#ets: 2rovided, That the conversion of agricultural lands into industrial, commercial or residential lands shall ta#e into account, tillers* rights and national food security. -urther, the State shall protect -ilipino enterprises against unfair foreign competition and trade practices. The State recognizes that there is not enough agricultural land to e divided and distri uted to each farmer and regular farm"or#er so that each one can o"n his5her economic%size family farm. This eing the case, a meaningful agrarian reform program to uplift the lives and economic status of the farmer and his5her children can only e achieved through simultaneous industrialization aimed at developing a self%reliant and independent national economy effectively controlled y -ilipinos. To this end, the State may, in the interest of national "elfare or defense, esta lish and operate vital industries. A more e(uita le distri ution and o"nership of land, "ith due regard to the rights of lando"ners to $ust compensation, retention rights under Section + of 1epu lic Act 6o. ++),, as amended, and to the ecological needs of the nation, shall e underta#en to provide farmers and farm"or#ers "ith the opportunity to enhance their dignity and improve the (uality of their lives through greater productivity of agricultural lands. The agrarian reform program is founded on the right of farmers and regular farm"or#ers, "ho are landless, to o"n directly or collectively the lands they till or, in the case of other farm"or#ers, to receive a $ust share of the fruits thereof. To this end, the State shall encourage and underta#e the $ust distri ution of all agricultural lands, su $ect to the priorities and retention limits set forth in this Act, ta#ing into account ecological, developmental, and e(uity considerations, and su $ect to the payment of $ust compensation. The State shall respect the right of small lando"ners, and shall provide incentive for voluntary land%sharing. As much as practica le, the implementation of the program shall e community% ased 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, farm"or#ers and lando"ners, as "ell 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 ade(uate financial, production, mar#eting and other support services. The State shall recognize and enforce, consistent "ith existing la"s, the rights of rural "omen to o"n and control land, ta#ing into consideration the su stantive e(uality et"een men and "omen as (ualified eneficiaries, to receive a $ust share

of the fruits thereof, and to e represented in advisory or appropriate decision%ma#ing odies. These rights shall e independent of their male relatives and of their civil status. The State shall apply the principles of agrarian reform, or ste"ardship, "henever applica le, in accordance "ith la", in the disposition or utilization of other natural resources, including lands of the pu lic domain, under lease or concession, suita le to agriculture, su $ect 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 "or#ers in its o"n agricultural estates, "hich shall e distri uted to them in the manner provided y la". .y means of appropriate incentives, the State shall encourage the formation and maintenance of economic%size family farms to e constituted y individual eneficiaries and small lando"ners. The State shall protect the rights of su sistence fishermen, especially of local communities, to the preferential use of communal marine and fishing resources, oth inland and offshore. It shall provide support to such fishermen through appropriate technology and research, ade(uate financial, production and mar#eting assistance and other services. The State shall also protect, develop and conserve such resources. The protection shall extend to offshore fishing grounds of su sistence fishermen against foreign intrusion. -ish"or#ers shall receive a $ust share from their la or in the utilization of marine and fishing resources. The State shall e guided y the principles that land has a social function and land o"nership has a social responsi ility. 7"ners of agricultural land have the o ligation to cultivate directly or through la or administration the lands they o"n and there y ma#e the land productive. The State shall provide incentives to lando"ners to invest the proceeds of the agrarian reform program to promote industrialization, employment and privatization of pu lic sector enterprises. -inancial instruments used as payment for lands shall contain features that shall enhance negotia ility and accepta ility in the mar#etplace. The State may lease undeveloped lands of the pu lic domain to (ualified entities for the development of capital%intensive farms, and traditional and pioneering crops especially those for exports su $ect to the prior rights of the eneficiaries under this Act.

'. .e/i#itio# o/ A0% %i # Re/o% " 1. Agrarian 1eform means the redistri ution of lands, regardless of crops or fruits produced, to farmers and regular farm"or#ers "ho are landless, irrespective of tenurial arrangement, to include the totality of factors and support services designed to lift the economic status of the eneficiaries and all other arrangement alternative to the physical redistri ution of lands, such as produc% tion or profit%sharing, la or administration, and the distri u tion of stoc#, "hich "ill allo" eneficiaries to receive a $ust share of the fruits of the lands they "or#. /Section !3a4 of 1A ++),0

2. 8istinguished from 9and 1eform : 9and 1eform is the physical redistri ution of land such as the program under 2residential 8ecree 6o. 2,. Agrarian reform means the redistri u tion of lands including the totality of factors and support services designed to lift the economic status of the eneficiaries. Thus, agrarian reform is roader than land reform.

8. RA 6657 i! Co#!tituti o # l In the case of Association of Small 9ando"ners in the 2hilippines, Inc. v. Secretary of Agrarian 1eform, 1 the Supreme 'ourt held: ;The case efore us presents no #notty complication insofar as the (uestion of compensa le ta#ing is concerned. To the extent that the measures under challenge merely prescri e retention limits for lando"ners, there is an exercise of the police po"er for the regulation of private property in accordance "ith the 'onstitution. .ut "here, to carry out such regulation, it ecomes necessary to deprive such o"ners of "hatever lands they may o"n in excess of the maximum area allo"ed, there is defi % nitely a ta#ing under the po"er of eminent domain for "hich payment of $ust compensation is imperative. The ta#ing contemplated is not a mere limitation of the use of the land. <hat is re(uired is the surrender of the title to and the physical possession of the said excess and all eneficial rights accru ing to the o"ner in favor of the farmer% eneficiary. This is definitely an exercise not of the police po"er ut of the po"er of eminent domain. ;'lassification has een defined as the grouping of persons or things similar to each other in certain particulars and different from each other in these same particulars. To e valid, it must conform to the follo"ing re(uirements: 314 it must e ased on su stantial distinctions= 324 it must e germane to the purpose of the la"= 3!4 it must not e limited to existing conditions only= and 3&4 it must apply e(ually to all the mem ers of the class. The 'ourt finds that all these re(uisites have een met y the measures here challenged as ar itrary and discriminatory. ;>(ual protection simply means that all persons or things similarly situated must e treated ali#e oth as to the rights conferred and the lia ilities imposed. The petitioner have not sho"n that they elong to a different class and enti tled to a different treatment. The argument that not only lando"ners ut also o"ners of other properties must e made to share the urden of implementing land reform must e re$ected. There is a su stantial distinction et"een these t"o classes of o"ners that is clearly visi le except to those "ho "ill not see. There is no need to ela orate on this matter. In any event, the 'ongress is allo"ed a "ide lee"ay in providing for a valid classification. Its decision is accorded recognition and respect y the courts of $ustice except only "here its discretion is a used to the detriment of the .ill of 1ights. ;It is "orth remar#ing at this $uncture that a statute may e sustained under the police po"er only if there is a concurrence of the la"ful su $ect and the la"ful method. 2ut other"ise, the interests of the pu lic generally as distinguished from those of a particular class re(uire the interference of the State and, no less 1 1,) S'1A !&!.

important, the means employed are reasona ly necessary for the attainment of the purpose sought to e achieved and not unduly oppressive upon individu als. As the su $ect and purpose of agrarian reform have een laid do"n y the 'onstitution itself, "e may say that the first re(uirement has een satisfied. <hat remains to e examined is the validity of the method employed to achieve the 'onstitutional goal. ;>minent domain is an inherent po"er of the State that ena le it to forci ly ac(uire private lands intended for pu lic use upon payment of $ust compensation to the o"ner. 7 viously, there is no need to expropriate "here the o"ner is "illing to sell under terms also accepta le to the purchaser, in "hich case an ordinary deed of sale may e agreed upon y the parties. It is only "here the o"ner is un"illing to sell, or cannot accept the price or other conditions offered y the vendee, that the po"er of eminent domain "ill come into play to assert the paramount authority of the State over the interest of the property o"ner. 2rivate rights must then yield to the irresisti le demands of the pu lic interest on the time%honored $ustification, as in the case of the police po"er, that the "elfare of the people is the supreme la". ;.ut for all its primacy and urgency, the po"er of expropriation is y no means a solute 3as indeed no po"er is a solute4. The limitation is found in the constitu% tional in$unction that ;private property shall not e ta#en for pu lic use "ithout $ust compensation; and in the a undant $urisprudence that has evolved from the interpretation of this principle. .asically, the re(uirements for a proper exercise of the po"er are: 314 pu lic use and 324 $ust compensation. ;/T0he determination of $ust compensation is a function addressed to the courts of $ustice and may not e usurped y any other ranch or official of the government. >2?A v. 8ulay resolved a challenge to several decrees promulgated y 2resident @arcos providing that the $ust compensation for property under expropriation should e either the assessment of the property y the government or the s"orn valuation thereof y the o"ner, "hichever "as lo"er. ;<ith these assumptions, the 'ourt here y declares that the content and manner of the $ust compensation provided for in the afore%(uoted Section 1A of the 'A12 9a" is not violative of the 'onstitution. <e do not mind admitting that a certain degree of pragmatism has influenced our decision on this issue, ut after all this 'ourt is not a cloistered institution removed from the realities and demands of society or o livious to the need for its enhancement. The 'ourt 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 disap % pointing decades. <e are a"are that invalidation of said section "ill result in the nullification of the entire program, #illing 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 vie" the intention of the 'onstitu tion, and that is not "hat "e shall decree today. ;Accepting the theory that payment of the $ust compensation is not al"ays re(uired to e made fully in money, "e find further that the proportion of cash payment to the other things of value constituting the total payment, as determined on the asis of the areas of the lands expropriated, is not unduly oppressive upon the lando"ner. It is noted that the smaller the land, the igger the payment in money, primarily ecause the small lando"ner "ill e needing it more than the ig lando"ner, "ho can afford a igger alance in onds and other things of value. 6o less importantly, the government financial instruments ma#ing up the alance of the payment are ;negotia le at any time.; The other modes, "hich are li#e"ise availa le to the lando"ner at his option, are also not unreasona le ecause

payment is made in shares of stoc#, 9.2 onds, other properties or assets, tax credits, and other things of value e(uivalent to the amount of $ust compensation.; II. Scope A. L #$! Co1e% e $ 1. The 'omprehensive Agrarian 1eform 9a" of 1BAA shall cover, regardless of tenurial arrangement and commodity produced, ALL P2&LIC AN. PRIVATE AGRIC2L T2RAL LAN.S as provided in 2roclamation 6o. 1!1 and >xecutive 7rder 6o. 22B, including other lands of the pu lic domain suita le for agriculture: 2rovided, That landholdings of lando"ners "ith a total area of five 3)4 hectares and elo" shall not e covered for ac(uisition and distri ution to (ualified eneficiaries. /Section &0 a. A0%icultu% l l #$ refers to land devoted to agricultural activity and not classified as mineral, forest, residential, commercial or industrial land /Section !3c40. . A0%icultu% l cti1it3 means the cultivation of the soil, planting of crops, gro"ing of fruit trees, raising of fish, including the harvesting of such farm products, and other farm activities and practices performed y a farmer in con$unction "ith such farming operations done y persons "hether natural or $uridical /Section !3 40. 2. Specifically, the follo"ing lands are covered 1eform 2rogram: y the 'omprehensive Agrarian

a. All aliena le and disposa le lands of the pu lic domain devoted to or suita le for agriculture. 6o reclassification of forest or mineral lands to agricultural lands shall e underta#en after the approval of this Act until 'ongress, ta#ing into account ecological, developmental and e(uity considerations, shall have determined y la", the specific limits of the pu lic domain= . All lands of the pu lic domain in excess of the specific limits as determined y 'ongress in the preceding paragraph= c. All other lands o"ned agriculture= and y the Covernment devoted to or suita le for

d. All private lands devoted to or suita le for agriculture regardless of the agricultural products raised or that can e raised thereon. .. E4clu!io # ! /%o " t5e Co1e% 0 e o/ CARL 1. Dnder Section 1E2, excluded from the coverage of the 'A19 are lands $i%ectl3 #$ e4clu!i1 el3 u!e$ /o% : a. 2ar#s= . <ildlife= c. -orest reserves= 2 As amended y 1epu lic Act 6o. ,AA1. ctu ll3'

d. 1eforestation= e. -ish sanctuaries and reeding grounds= f. <atersheds and mangroves. 2. 2rivate lands actually, directly and exclusively used for pra"n farms and fishponds shall e exempt from the coverage of this Act: P%o1i$e $' T5 t ! i$ p% 6 # / %" ! #$ /i!5po # $ ! 5 1 e #ot bee # $i!t%ibut e $ #$ Ce%ti/ic t e o/ L #$ O6#e %! 5i p A6 %$ 7CLOA8 i!!ue $ to 0% %i # %e/o% " be#e /ici %i e ! u#$e % t5e Co"p % e 5 e # ! i 1 e A0% %i # Re/o% " P%o0% " . In cases "here the fishponds or pra"n farms have een su $ected to the 'omprehensive Agrarian 1eform 9a", y voluntary offer to sell, or commercial farms deferment or notices of compulsory ac(uisition, a simple and a solute ma$ority of the actual regular "or#ers or tenants must consent to the exemption "ithin one 314 year from the effectivity of this Act. <hen the "or#ers or tenants do not agree to this exemption, the fishponds or pra"n farms shall e distri uted collectively to the "or#er% eneficiaries or tenants "ho shall form a cooperative or association to manage the same. !. 9i#e"ise, execluded from the coverage the 'A19 are lands actually, directly and exclusively used and found to e necessary for: a. 6ational defense= . School sites and campuses including experimental farm stations operated pu lic or private schools for educational purposes= c. Seeds and seedling research and pilot production center= d. 'hurch sites and convents appurtenant thereto= e. @os(ue sites and Islamic centers appurtenant thereto= f. 'ommunal urial grounds and cemeteries= g. 2enal colonies and penal farms actually "or#ed y the inmates= and h. Covernment and private research and (uarantine centers. y

&. All lands "ith eighteen percent 31AF4 slope and over "hich are not developed for agriculture are exempted from the coverage of 'A19. : An eighteen percent slope is not e(uivalent to an eigh teen degree angle. >ighteen percent slope is o tained y having a 1EE meter run and an 1A meter rise.

). In the case of 9uz -arms v. Secretary of Agrarian 1eform,! the Supreme 'ourt has excluded agricultural 9ands 8evoted to 'ommercial 9ivestoc#, 2oultry and S"ine 1aising from the coverage of 'A19. The Supreme 'ourt said: ;The transcripts of the deli erations of the 'onstitutional 'ommission of 1BA+ on the meaning of the "ord ;agricultural,; clearly sho" that it "as never the intention of the framers of the 'onstitution to include livestoc# and poultry industry in the coverage of the constitutionally%mandated agrarian reform program of the Covernment. ;The 'ommittee adopted the definition of ;agricultural land; as defined under Section 1++ of 1A !A&&, as lands devoted to any gro"th, including ut not limited to crop lands, salt eds, fishponds, idle and a andoned land 31ecord, ! 1B2 S'1A )1.

'76'7@, August ,, 1BA+, Gol. III, p. 114. ;The intention of the 'ommittee is to limit the application of the "ord ;agriculture.; 'ommissioner Hamir proposed to insert the "ord ;A1A.9>; to distinguish this #ind of agricultural land from such lands as commercial and industrial lands and residential properties ecause all of them fall under the general classification of the "ord ;agricultural.; This proposal, ho"ever, "as not considered ecause the 'ommittee contemplated that agricultural lands are limited to ara le and suita le agricultural lands and therefore, do not include commercial, industrial and residential lands 31ecord, '76'7@, August ,, 1BA+, Gol. III, p. !E4. ;In the interpellation, then 'ommissioner 1egalado 3no" a Supreme 'ourt Hustice4, posed several (uestions, among others, (uoted as follo"s: xxx xxx xxx ;9ine 1B refers to genuine reform program founded on the primary right of farmers and farm"or#ers. I "onder if it means that leasehold tenancy is there y proscri ed under this provision ecause it spea#s of the primary right of farmers and farm"or#ers to o"n directly or collectively the lands they till. As also mentioned y 'ommissioner Tadeo, farm"or#ers include those "ho "or# in piggeries and poultry pro$ects. I "as "ondering "hether I am "rong in my appreci ation that if some ody puts up a piggery or a poultry pro$ect and for that purpose hires farm "or#ers therein, these farm"or#ers "ill automatically have the right to o"n eventually, directly or ultimately or collectively, the land on "hich the piggeries and poultry pro$ects "ere constructed. 31ecord, '76'7@, August 2, 1BA+, p. +1A4. xxx xxx xxx; ;The (uestion "ere ans"ered and explained in the statement of the then 'ommissioner Tadeo, (uoted as follo"s: xxx xxx xxx ;Sa pangala"ang #atanungan ng Cinoo ay medyo hindi #ami nag#auna"aan. Ipinaaalam #o #ay 'ommissioner 1egalado na hindi namin inilagay ang agricultural "or#er sa #adahilanang #asama rito ang piggery, poultry at livestoc# "or#ers. Ang inilagay namin dito ay farm "or#er #aya hindi #asama ang piggery, poultry at livestoc# "or#ers 31ecord, '76'7@, August , 1BA+, Gol. II, p. +214. ;It is evident from the foregoing discussion that Section 11 of 1A ++), "hich includes ;private agricultural lands devoted to commercial livestoc#, poultry and s"ine raising; in the definition of ;commercial farms; is invalid, to the extent that the aforecited agro%industrial activities are made to e covered y the agrarian reform program of the State. There is simply no reason to include live % stoc# and poultry lands int he coverage of agrarian reform. 31ollo, p. 214. ;21>@IS>S '76SI8>1>8, the instant petition is here y C1A6T>8. Sections !3 4, 11, 1! and !2 of 1.A. 6o. ++), insofar as the inclusion of raising of livestoc#, poultry and s"ine in its coverage as "ell as the Implementing 1ules and Cuidelines promulgated in accordance there"ith, are here y 8>'9A1>8 null and void for eing unconstitutional and the "rit of preliminary in$unction issued is here y @A8> permanent.;

III. Sc5e $ ule o/ I"ple " e # t ti o # A. Pe%io$ /o% I"ple " e # t ti o # /Section )0 1. The 8A1, in coordination "ith the 2residential Agrarian 1eform 'ouncil 32A1'4 shall plan and program the final ac(uisition and distri ution of all remaining unac(uired and undistri uted agricultural lands from the effectivity of this Act until 9u#e +:' (:), . .. P%io%itie ! /Section ,0 1. Cuiding 2rinciple: In effecting the transfer, priority must are tenanted. 2. -actors to consider in the Implementation a. 6eed to distri ute lands to the tillers at the earliest practical time= . 6eed to enhance agricultural productivity= and c. Availa ility of funds and resources to implement and support the program !. 2hases of Implementation P5 ! e O#e : 8uring the five 3)4%year extension period hereafter all remaining lands a ove fifty 3)E4 hectares shall e covered for purposes of agrarian reform upon the effectivity of this Act. All private agricultural lands of lando"ners "ith aggregate landholdings in excess of fifty 3)E4 hectares "hich have already een su $ected to a notice of coverage issued on or efore 8ecem er 1E, 2EEA= rice and corn lands under 2residential 8ecree 6o. 2,= all idle or a andoned lands= all private lands voluntarily offered y the o"ners for agrarian reform: 2rovided, That "ith respect to voluntary land transfer, only those su mitted y Hune !E, 2EEB shall e allo"ed: 2rovided, further, That after Hune !E, 2EEB, the modes of ac(uisition shall e limited to voluntary offer to sell and compulsory ac(uisition: 2rovided, furthermore, That all previously ac(uired lands "herein valuation is su $ect to challenge y lando"ners shall e completed and finally resolved pursuant to Section 1, of 1epu lic Act 6o. ++),, as amended: 2rovided, finally, as mandated y the 'onstitution, 1epu lic Act 6o. ++),, as amended, and 1epu lic Act 6o. !A&&,as amended, only farmers 3tenants or lessees4 and regular farm"or#ers actually tilling the lands, as certified under oath y the .arangay Agrarian 1eform 'ouncil 3.A1'4 and attested under oath y the lando"ners, are the (ualified eneficiaries. The intended eneficiary shall state under oath efore the $udge of the city or municipal court that he5she is "illing to "or# on the land to ma#e it productive and to assume the o ligation of paying the amortization for the compensation of the land and the land taxes thereon= all lands foreclosed y government financial institutions= all lands ac(uired y the 2residential 'ommission on Cood Covernment 32'CC4= and all other lands o"ned y the government devoted to or suita le for agriculture, "hich shall e ac(uired and distri uted immediately upon the effectivity of this Act, "ith the implementation to e completed y Hune !E, 2E12. P5 ! e T6o : 3a4 9ands t"enty%four 32&4 hectares up to fifty 3)E4 hectares shall li#e"ise e covered for purposes of agrarian reform upon the effectivity of this Act. All aliena le and disposa le pu lic agricultural lands= all ara le pu lic agricultural lands under agro%forest, pasture and agricultural leases already cultivated and planted to crops in accordance "ith Section +, Article IIII of the 'onstitution= all e given to lands that

pu lic agricultural lands "hich are to e opened for ne" development and resettlement: and all private agricultural lands of lando"ners "ith aggregate landholdings a ove t"enty%four 32&4 hectares up to fifty 3)E4 hectares "hich have already een su $ected to a notice of coverage issued on or efore 8ecem er 17, 2EEA, to implement principally the rights of farmers and regular farm"or#ers, "ho are landless, to o"n directly or collectively the lands they till, "hich shall e distri uted immediately upon the effectivity of this Act, "ith the implementation to e completed y Hune !E, 2E12= and 3 4 All remaining private agricultural lands of lando"ners "ith aggregate landholdings in excess of t"enty%four 32&4 hectares, regardless as to "hether these have een su $ected to notices of coverage or not, "ith the implementation to egin on Huly 1, 2E12 and to e completed y Hune !E, 2E1! P5 ! e T5%e e : All other private agricultural lands commencing "ith large landholdings and proceeding to medium and small landholdings under the follo"ing schedule: 3a4 9ands of lando"ners "ith aggregate landholdings a ove ten 31E4 hectares up to t"enty% four 32&4hectares, insofar as the excess hectarage a ove ten 31E4 hectares is concerned, to egin on Huly 1,2E12 and to e completed y Hune !E, 2E1!= and 3 4 9ands of lando"ners "ith aggregate landholdings from the retention limit up to ten 31E4 hectares, to egin on Huly 1, 2E1! and to e completed y Hune !E, 2E1&= to implement principally the right of farmers and regular farm"or#ers "ho are landless, to o"n directly or collectively the lands they till. The schedule of ac(uisition and redistri ution of all agricultural lands covered y this program shall e made in accordance "ith the a ove order of priority, "hich shall e provided in the implementing rules to e prepared y the 2A1', ta#ing into consideration the follo"ing: the landholdings "herein the farmers are organized and understand ,the meaning and o ligations of farmland o"nership= the distri ution of lands to the tillers at the earliest practica le time= the enhancement of agricultural productivity= and the availa ility of funds and resources to implement and support the program: 2rovided, That the 2A1' shall design and conduct seminars, symposia, information campaigns, and other similar programs for farmers "ho are not organized or not covered y any landholdings. 'ompletion y these farmers of the aforementioned seminars, symposia, and other similar programs shall e encouraged in the implementation of this Act particularly the provisions of this Section.

The 2A1' shall esta lish guidelines to implement the a ove priorities and distri ution scheme, including the determination of "ho are (ualified eneficiaries: 2rovided, That an o"ner%tiller may e a eneficiary of the land he5she does not o"n ut is actually cultivating to the extent of the difference et"een the area of the land he5she o"ns and the a"ard ceiling of three 3!4 hectares: 2rovided, further, That collective o"nership y the farmer eneficiaries shall e su $ect to Section 2) of 1epu lic Act 6o. ++),, as amended: 2rovided, furthermore, That rural "omen shall e given the opportunity t o participate in the development planning and implementation of this Act: 2rovided, finally, That in no case should the agrarian reform eneficiaries* sex, economic, religious, social, cultural and political attri utes adversely affect the distri ution of lands.

'. E4ce pti o # ! /%o " t5e I"ple " e # t ti o # P5 ! e ! 1. 9and ac(uisition and distri ution shall e completed y Hune !E, 2E1& on a province% y% province asis. In any case, the 2A1' or the 2A1' >xecutive 'ommittee 32A1' >I'7@4, upon recommendation y the 2rovincial Agrarian 1eform 'oordinating 'ommittee 32A1''7@4, may declare certain provinces as priority land reform areas, in "hich case the ac(uisition and distri ution of private agricultural lands therein under advanced phases may e implemented ahead of the a ove schedules on the condition that prior phases in these provinces have een completed: 2rovided, That not"ithstanding the a ove schedules, phase three 3 4 shall not e implemented in a particular province until at least ninety percent 3BEF4 of the provincial alance of that particular province as of Hanuary 1, 2EEB under 2hase 7ne, 2hase T"o 3a4, 2hase T"o 3 4,,and 2hase Three 3a4, excluding lands under the $urisdiction of the 8epartment of >nvironment and 6atural 1esources 38>614, have een successfully completed. 2A1', upon recommendation of the 2rovincial Agrarian 1eform 'oordinating 'ommittee 32A1''7@4, may declare certain prov inces or regions as priority land reform areas, in "hich case the ac(uisition and distri ution of private agricultural lands therein may e implemented ahead of schedule. /Section ,0 2. The 2A1' may suspend the implementation of 'A19 "ith respect to ancestral lands for purpose of identifying and delineating such lands. /Section B0 IG. I"p%o1 e " e # t o/ Te#u%i l A. Le !e 5 ol$ Te# # c 3 1. Tenancy in Ceneral a. 8efinition: Agricultural tenancy is the physical possession y a person of land devoted to agriculture, elonging to or legally possessed y another for the purpose of production through the la or of the former and of the mem ers of his immediate farm household in consideration of "hich the former agrees to share the harvest "ith the latter or to pay a price certain or ascertaina le, either in produce or in money, or in oth /Section ! of 1A 11BB, Cuerrero v. 'A&0 . Types of Tenancy 1elation i. Sharehold Tenancy= and ii. 9easehold Tenancy 2. 9easehold vs. Sharehold Tenancy : The t"o tenancy systems are distinct and different form each other. In sharehold, the tenant may choose to shoulder, in addition to la or, any one or more of the items of contri utions 3such as farm implements, "or# ani% mals, final harro"ing, transplanting4, "hile in leasehold, the tenant or lessee al"ays shoulders all items of production except the land. Dnder the share% #$ L bo% Rel tio # !

&

1&2 S'1A 1!+.

hold system, the tenant and the landholder are co%managers, "hereas in leasehold, the tenant is the sole manager of the farmholding. -inally, in sharehold tenancy, the tenant and the landholder divide the harvest in proportion to their contri utions, "hile in leasehold tenancy, the tenant or lessee gets the "hole produce "ith the mere o ligation to pay a fixed rental. /2eople v. Adillo )0 Sharehold
>xpenses of 2roduction @anagement 2ayment Tenant and 9ando"ner Tenant and 9ando"ner Tenant and lando"ner divide the harvest in proportion to their contri utions. Tenant Tenant Tenant gets the "hole produce "ith the mere o ligation to pay rent.

9easehold

!. 9easehold vs. 'ivil 9ease : There are important differences et"een a leasehold tenancy and a civil la" lease. The su $ect matter of leasehold tenancy is limited to agricultural lands= that of civil la" lease may e either rural or ur an property. As to atten tion and cultivation, the la" re(uires the leasehold tenant to personally attend to, and cultivate the agricultural land, "hereas the civil la" lessee need not personally cultivate or "or# the thing leased. As to purpose, the landholding in leasehold tenancy is devoted to agriculture, "hereas in civil la" lease, the purpose may e for any other la"ful pursuit. As to the la" that governs, the civil la" lease is governed y the 'ivil 'ode, "hereas leasehold tenancy is governed y special la"s. /Ca riel v. 2angilinan +0 9easehold Tenancy Su $ect @atter Attention and 'ultivation 2urpose Coverning 9a" Agricultural lands only Tenant must personally cultivate Agriculture only Special la"s 'ivil 9a" 9ease .oth rural and ur an properties 9essee does not have to personally cultivate Any la"ful purpose 'ivil 'ode

&. 2urpose of the 9easehold 1elation: To protect and improve the tenurial and economic status of the farmers in tenanted lands. /Section 120 ). Application /Section 120 a. Tenanted lands under the retention limit= and . Tenanted lands not yet ac(uired under the 'A19

) +

+A S'1A BE. )A S'1A )BE.

.. P%o$uc ti o # S5 %i# 0 Pl # 1. Application /Section 1!0 a. Any enterprise adopting the scheme provided for in Section !2= . Any enterprise operating under a production venture, lease, management contract or other similar arrangement= c. Any farm covered y Section A 32rivate agricultural lands leased y @ultinational corporations4 and Section 11 3'ommercial farming4= and d. 'orporate farms pending final land transfer. 2. 2eriod for 'ompliance: <ithin ninety 3BE4 days from effectivity of 'A19 !. Scheme 3Applies to those individuals or enterprises realizing 0%o!! ! le! i# e4ce !! o/ /i1e "illio# pe!o ! pe% ##u " , unless the 8A1 sets a lo"er ceiling4 /Section !20 a. Three percent 3!F4 of the gross sales from the production of such lands= . 8istri uted "ithin sixty 3+E4 days of the end of the fiscal year= c. Treated as additional compensation to regular and other farm"or#ers of such lands= d. 8uring the transitory period 3 efore the land is turned over to the farm"or#er% eneficiaries4, at least one percent 31F4 of the gross sales shall e distri uted to the managerial, supervisory and technical group= and e. If profit is realized, an additional ten percent 31EF4 of the net profit after tax shall e distri uted to the regular and other farm"or#ers "ithin ninety 3BE4 days of the end of the fiscal year. G. Re0i!t% ti o # A. <ithin 1AE days from the effectivity of 'A19, lando"ners, natural or $uridical, shall file a s"orn statement in the assessor*s office the follo"ing information: a. . c. d. the description and area of the property= the average gross income from the property for at least ! years= the names of all tenants and farm"or#ers therein= the crops planted in the property and the area covered y the crop as of Hune 1, 1BA,= e. the terms of mortgages, leases and management contracts su sisting as of Hune 1, 1BA,= and f. the latest declared mar#et value of the land as determined y the city or provincial assessor. 3Section 1&4 .. The 8A1, in coordination "ith the .arangay Agrarian 1eform 'ommittee 3.A1'4 shall register all agricultural lessees, tenants and farm"or#ers "ho are (ualifies to e eneficiaries under the 'A19. These potential eneficiaries shall provide the follo"ing data: a. names and mem ers of their immediate farm household= . o"ners and administrators of the lands they "or# on and the length of tenurial relationship= c. location and area of the land they "or#=

d. crops planted= and e. their share in the harvest or amount of rental paid or "ages received. GI. P%i1 te L #$ Ac;ui!itio # A. Rete #ti o # Li"it /Section +0 1. Fi1e 5ect % e ! i! t5e %ete # tio # li"it . 6o person may o"n or retain, directly or indirectly, any pu lic or private agricultural land, the size of "hich shall vary according to factors governing a via le family%sized farm, such as com modity produced, terrain, infrastructure, and soil fertility as determined y the 2residential Agrarian 1eform 'ouncil 32A1'4, ut in no case shall the retention limit exceed five 3)4 hectares. 2. A$$itio# l t5%e e 5ect % e ! " 3 be follo"ing (ualifications: 6 % $ e $ to e c5 c5il$ , su $ect to the

a. That the child is at least fifteen 31)4 years of age= and . That the child is actually tilling the land or directly managing the farm. !. E4ce pti o # ! to t5e %ete #ti o # li"it o/ /i1e 5ect % e ! . a. 9ando"ners "hose lands have een covered y 28 2,= and . 7riginal homestead grantees or direct compulsory heirs "ho still o"n the original homestead at the time of the approval of 'A19, as long as they continue to cultivate said homestead. '. 2rovincial, city and municipal government ,units ac(uiring private agricultural lands y expropriation or other modes of ac(uisition to e used for actual, direct and exclusive pu lic purposes, such as roads and ridges, pu lic mar#ets, school sites, resettlement sites, local government facilities, pu lic par#s and arangay plazas or s(uares, consistent "ith the approved local comprehensive land use plan, shall not e su $ect to the five 3)4%hectare retention limit under this Section and Sections ,E and ,!3a4 of 1epu lic Act 6o. ++),, as amended: 2rovided, That lands su $ect to 'A12 shall first undergo the land ac(uisition and distri ution process of the program: 2rovided, further, That "hen these lands have een su $ected to expropriation, the agrarian reform eneficiaries therein shall e paid $ust compensation /Section +%A0. &. Ri05t to c5oo! e t5e %e to be %et i #e $ .

The right to choose the area to e retained, "hich shall e compact or contiguous, shall pertain to the lando"ner. If the land retained is tenanted, the tenant shall have the option to choose "hether to remain therein or e a enefi % ciary in the same or another agricultural land. In case the tenant chooses to remain in the retained area, he shall e considered a leaseholder and shall lose his right to e a eneficiary under this Act. In case the tenant chooses to e a eneficiary in another agricultural land, he loses his right as a lease holder to the land retained y the lando"ner. The tenant must exercise this option "ithin a period of one 314 year from the time the lando"ner manifest his choice of the area for retention.

.. P%oce $ u % e 1. Goluntary 9and Transfer 3G9T4 /Section 2E0 a. @ust e su mitted to the 8A1 "ithin one year from effectivity of the 'A1l= . @ust not e less favora le to the transferee than those of the government*s standing = and c. Shall include sanctions for non%compliance y either party and shall e duly recorded and its implementation monitored y the 8A1. 8. 7nly those su mitted y Hune !E, 2EEB shall e allo"ed. 2. 'ompulsory Ac(uisition /Section 1+0 a. 6otice to ac(uire the land shall e sent to the land o"ner and the eneficiaries. The notice shall also e posted in a conspicuous place in the municipal uilding and the arangay hall of the place "here the property is located. . <ithin thirty 3!E4 days from receipt of the "ritten notice, the lando"ner shall inform the 8A1 of his acceptance or re$ection of the offer. c. If the offer is accepted, the 9.2 pays the lando"ner and "ithin thirty 3!E4 days, the lando"ner executes and delivers a deed of transfer to the Covernment and surrenders the 'ertificate of Title and other muniments of title. d. In case of re$ection or failure to reply, the 8A1 shall conduct summary administrative proceedings to determine the compensation. If he does concur "ith the compensation determined y the 8A1, he can the matter to the 'ourts. e. 2ayment of the $ust compensation as determined y the 8A1 or the 'ourt. f. 1egistration "ith the 1egister of 8eeds for the issuance of Transfer 'ertificate of Title in the name of the 1epu lic of the 2hilippines. g. St #$i # 0 C%op! : The lando"ner shall retain his share of any standing crops unharvested at the time the 8A1 shall ta#e possession of the land and shall e given reasona le time to harvest the same 3Section 2A4. '. Co"p e # ! ti o # 1. 8etermination of Hust 'ompensation. In determining $ust compensation, the cost of ac(uisition of the land, the value of the standing crop, the current: value of li#e properties, its nature, actual use and income, the s"orn valuation y the o"ner, the tax declarations, the assessment made y government assessors, and seventy percent 3,EF4 of the zonal valuation of the .ureau of Internal 1evenue 3.I14, translated into a asic formula y the 8A1 shall e considered, su $ect to the final decision of the proper court. The social and economic enefits contri uted y the farmers and the farm"or#ers and y the Covernment t o the property as "ell as the nonpayment of taxes or loans secured from any government financing institution on the said land shall e considered as additional factors to determine its valuation /Section 1,0. 2. Dnder >7 &E) 31BBE4, 9and .an# of the 2hilippines shall e primarily responsi le for the determination of the land valuation and compensation.

!. @ode of 2ayment /Section 1A0 a. 'ash under the follo"ing scheme: i. -or lands a ove )E hectares ii. -or lands a ove 2& and up to )E iii. -or lands 2& and elo" : In case of G7S, the lando"ner shall payment. /Section 1B0 : : 2)F : !EF !)F

e entitled to an additional )F cash

. .alance in any of the follo"ing: i. Shares of stoc# in government%o"ned or controlled corporations, 9.2 preferred shares, physical assets or other (ualified investments= ii. Tax credits "hich can e used against any tax lia ility= iii. 9and .an# of the 2hilippines .onds "hich shall have the follo"ing features: : @ar#et interest rates aligned "ith B1%day treasury ill rates= : Ten percent 31EF4 of the face value of the onds shall mature every year from the date of issuance until the tenth year= and : Transfera ility and negotia ility c. Set%off : All arrearages in real property taxes, "ithout penalty or interest, shall e deducti le from the compensation to "hich the o"ner is entitled. /Section ++0 #$ Fee!

8. E4e " p ti o # ! /%o" T 4e !

1. Transactions under 'A19 involving a transfer of o"nership, "hether from natural or $uridical persons, shall e exempted from taxes arising from capital gains. These transactions shall also e exempted from the payment of registration fees, and all other taxes and fees for the conveyance or transfer thereof= 2rovided, That all arrearages in real property taxes, "ithout penalty or interest, shall e deducted from the compensation to "hich the o"ner may e entitled. /Section ++0 2. All 1egisters of 8eeds are here y directed to register, free from payment of all fees and other charges, patents, titles and documents re(uired for the implementation of 'A12. /Section +,0 GII. L #$ Re$i!t%i bu ti o # A. &e#e /ici %ie ! /Section 220 .eneficiaries, in their order of priority, are: 1. Agricultural lessees and share tenants= 2. 1egular -arm"or#ers: a natural person "ho is employed on a permanent asis

y an agricultural enterprise or farm /Section !3h40= a. -armer refers to a natural person "hose primary livelihood is cultivation of land or the production of agricultural crops, livestoc# and5or fisheries either y himself5herself, or primarily "ith the assistance of his5her immediate farm household, "hether the land is o"ned y him5her, or y another person under a leasehold or share tenancy agreement or arrangement "ith the o"ner thereof /Section !3f40. . -arm"or#er is a natural person "ho renders service for value as an employee or la orer in an agricultural enterprise or farm regardless of "hether his compensation is paid on a daily, "ee#ly, monthly or ;pa#ya"; asis. It includes an individual "hose "or# has ceased as a conse(uence of, or in connection "ith, a pending agrarian dispute and "ho has not o tained a su stantially e(uivalent and regular farm employment /Section !3g40. !. Seasonal farm"or#ers: a natural person "ho is employed on a recurrent, periodic or intermittent asis y an agricultural enterprise or farm, "hether as a permanent or an non%permanent la orer, such as ;dumaan;, ;sacada;, and the li#e /Section !3i40= &. 7ther farm"or#ers: a farm"or#er "ho is not a regular nor a seasonal farm"or#er /Section !3$40= ). Actual tillers or occupants of pu lic lands= +. 'ollective or cooperatives of the a ove eneficiaries= and : 'ooperatives shall refer to organizations composed primarily of small agricultural producers, farmers, farm"or#ers, or other agrarian reform eneficiaries "ho voluntarily organize themselves for the purpose of pooling land, human, technological, financial or other economic resources, and operated on the principle of one mem er, one vote. A $uridical person may e a mem er of a cooperative, "ith the same rights and duties as a natural person /Section !3#40.

,. 7thers directly "or#ing on the land. .efore any a"ard is given to a farmer, the (ualified children of the lando"ner must receive their three hectare a"ard. 1ural "omen refer to "omen "ho are engaged directly or indirectly in farming and5or fishing as their source of livelihood, "hether paid or unpaid, regular or seasonal, or in food preparation, managing the household, caring for the children, and other similar activities /Section !3l40. .. .i!;u li/ic ti o # ! o/ &e#e /ici %ie ! /Section 220 1. .eneficiaries under 2residential 8ecree 6o. 2, "ho have culpa ly sold, disposed of, or a andoned their land= 2. .eneficiaries guilty of negligence or misuse of the land or any support extended to them= : The mere fact that the expected (uantity of harvest, as visualized and

calculated y agricultural experts, is not actually realized, or that the harvest did not increase, is not a sufficient asis for concluding that the tenants failed to follo" proven farm practices. /.elmi v. 'A1 ,0 !. .eneficiaries "ith at least three 3!4 hectares of agricultural land= and : Dnder the 'A19, a eneficiary is landless if he o"ns less than three 3!4 hectares of agricultural land. /Section 2)0 een the su $ect of foreclo sure y the 9and .an#

&. .eneficiaries "hose land have of the 2hilippines. /Section 2+0 :

Dnder the 'A19, the 9.2 may foreclose on the mortgage for non%payment of the eneficiary of an aggregate of three 3!4 annual amortizations. /Section 2+0

'. A6 %$ ! 1. E" #ci p ti o # P te #t ! 3>2s4 are issued for lands covered under 7peration 9and Transfer 379T4 of 2residential 8ecree 6o. 2,. 2. Ce%ti/ic t e ! o/ L #$ O6#e %! 5i p A6 %$ 3'97As4 are issued for private agricultural lands and resettlement areas covered under 1epu lic Act 6o. ++),, other"ise #no"n as the 'omprehensive Agrarian 1eform 9a" of 1BAA. !. F%e e P te #t ! are issued for pu lic agricultural lands. Dnder Section 1) of >7 22B 31BA,4, all aliena le and dispos a le lands of the pu lic domain suita le for agriculture and outside proclaimed settlements shall e redistri uted y the 8epartment of >nvironment and 6atural 1esources 38>614. &. Ce%ti/ic t e ! o/ Ste 6 % $ ! 5i p Co#t% c t ! are issued for forest areas under the Integrated Social -orestry 2rogram. 8. M ##e % o/ P 3 " e # t /Section 2+0 1. 9ands a"arded shall e paid y the eneficiaries to the 9.2 in thirty 3!E4 annual amortizations at six percent 3+F4 interest per annum. The payments for the first three 3!4 years after the a"ards may e at reduced amounts as esta lished y the 2A1': 2rovided, That the first five 3)4 annual payments may not e more than five percent 3)F4 of the value of the annual gross production as esta lished y the 8A1. Should the scheduled annual payments after the fifth year exceed ten percent 31EF4 of the annual gross production and the failure to produce accordingly is not due to the eneficiary*s fault, the 9.2 may reduce the interest rate or reduce the principal o ligation to ma#e the repayment afforda le. 2. 2ayment shall e: a. Thirty 3!E4 annual amortizations 3-irst ! years may e at reduced amounts4= . Six percent 3+F4 interest per annum= and c. -irst five 3)4 annual payments may not e more than five percent 3)F4 of the , , S'1A A12. :

value of the annual gross production.

>. O6#e % ! 5i p Li"it tio #! o# t5e A6 %$ e $ L #$! 1. T% #!/ e % bilit3 o/ A6 %$ e $ L #$! . % 9ands ac(uired y eneficiaries may not e sold, transferred or conveyed except through hereditary succession, or to the government, or to the 9and .an# of the 2hilippines, or to other (ualified eneficiaries for a period of ten 31E4 years. /Section 2,0 : If the land is sold to the government or to the 9.2, the children or the spouse of the transferee shall have a right to repurchase "ithin a period of t"o 324 years.

2. Co#1 e % !i o # ! o/ L #$! . % An application for conversion may e entertained only after the lapse of five 3)4 years from the a"ard, "hen the land ceases to e economically feasi le and sound for agricultural purposes or the locality has ecome ur anized and the land "ill have a greater economic value for residential, commercial or industrial purpose. /Section ++0 GIII. Co%po % t e F %" !

A. .e/i#itio# : 'orporate farms are farms "hich are o"ned or operated y corporations or other usiness associations. /Section 2B0

.. .i!t%ibuti o # 1. 9and Transfer 3Goluntarily 7ffer to Sell or 'ompulsory Ac(uisition4 a. Ceneral rule: 9ands shall e distri uted directly to the individual farm"or#er% eneficiaries. . >xception: Jo"ever, if it is not economically feasi le and sound to divide the land, then it shall e o"ned collectively y the farm"or#er% eneficiaries through a "or#ers* cooperative or association. /Section 2B0 c. In case the land is transferred to a cooperative or association, the individual mem ers of the cooperatives shall e provided "ith homelots and small farmlots for their family use, to e ta#en from the land o"ned y the cooper% ative. /Section !E0 2. 'apital Stoc# Transfer /Section !10 a. This is a non%land transfer. 'orporations or associa tions "hich voluntarily divest a proportion of their capital stoc#, e(uity or participation in favor of their "or#ers or other (ualified eneficiaries shall e deemed to have complied "ith 'A19. . Amount to e divested: 'orporations o"ning agricultural lands may give their (ualified eneficiaries the right to repurchase such proportion of the capital stoc# of the corporation that the agricultural land, actually devoted to agricultural activities, ears in relation to the company*s total assets.

Agricultural activity means the cultivation of the soil, planting of crops, gro"ing of fruit trees, raising of fish, including the harvesting of such farm products, and other farm activities and practices performed y a farmer in con$unction "ith such farming operations done y persons "hether natural or $uridical /Section !3 40.

c. 'onditions of the 'apital Stoc# Transfer. i. The oo#s of the corporation shall e su $ect to periodic audit y certified pu lic accountants chosen y the eneficiaries= ii. The eneficiaries shall e assured of at least one 314 representative in the oard of directors, or in a management or executive committee, if one exists= iii. Any share ac(uired y the eneficiaries shall have the same rights and features as all other shares= and iv. Any transfer of shares of stoc# y the original eneficiaries shall e void ab initio unless said transaction is in favor of a (ualified and registered eneficiary "ithin the same corporation. d. 2eriod for 'ompliance: If "ithin T<7 324 K>A1S from the approval of 'A19 or from the approval of the 2A1' of the plan for stoc# distri ution, the stoc# transfer is not made or realized, the agricultural land shall e su $ect to compulsory coverage of the 'A19. II. Suppo % t Se%1ice ! A. Ge#e % l Suppo % t #$ Coo%$i # ti 1 e Se%1ice ! /Section !)0

1. Irrigation facilities= 2. Infrastructure development and pu lic "or#s pro$ects in areas and settlements that come under agrarian reform= !. Covernment su sidies for the use of irrigation facilities= &. 2rice support and guarantee for all agricultural produce= ). >xtending the necessary credit= +. 2romoting, developing and extending financial assistance to small and medium scale industries in agrarian reform areas= ,. Assigning sufficient num ers of agricultural extension "or#ers to farmers* organizations= A. Dnderta#ing research, development and dissemination of information on agrarian reform and lo"%cost and ecologically sound farm inputs and technologies to minimize reliance on expensive and imported agricultural inputs= B. 8evelopment of cooperative management through intensive training= 1E. Assistance in the identification of ready mar#ets for agricultural produce and training in other various aspects of mar#eting= and 11. Administration, operation, management and funding of support service programs and pro$ects including pilot pro$ects and models related to agrarian reform. .. Suppo % t Se%1ice ! to &e#e /ici %i e ! /Section !,0

1. 9and surveys and titling= 2. 9i eralized terms on credit facilities and production loans= !. >xtension services y "ay of planting, cropping, production and post%harvest technology transfer, as "ell as mar#eting and management assistance and support to cooperatives and farmers* organizations= &. Infrastructure such as access trail, mini%dams, pu lic utilities, mar#eting and storage facilities= and ). 1esearch, production and use of organic fertilizers and other local su stances necessary in farming and cultivation. '. Suppo % t Se%1ice ! to L #$o 6 # e % ! /Section !A0 1. Investment information, financial and counselling assistance= 2. -acilities, programs and schemes for the conversion or exchange of onds issued for payment of the lands ac(uired "ith stoc#s and onds issued y the 6ational Covernment, the 'entral .an# and other government institutions and instrumentalities= !. @ar#eting of 9.2 onds, as "ell as promoting the mar#eta ility of said onds in traditional and non%traditional financial mar#ets and stoc# exchanges= &. 7ther services designed to utilize productively the proceeds of the sale of such lands for rural industrialization= ). Incentives granted to a registered enterprise engaged in a pioneer or preferred area of investment as provided for in the 7mni us Investment 'ode or granted y the 2A1', the 9.2 or other government financial institutions for those "ho in% vests in rural% ased industries= and +. 1edemption y the 9.2 of up to thirty percent 3!EF4 of the face value of the its onds for lando"ners "ho "ill invest the proceeds of the redemption in a .7I% registered company or in any agri% usiness or agro%industrial enterprise in the region "here they have previously made investments. 8. Fu#$i#0 : At least t"enty%five percent 32)F4 of all appropriations for agrarian reform shall e immediately set aside and made availa le for support services. In addition, the 8A1 shall e authorized to pac#age proposals and receive grants, aid and other forms of financial assistance from any source. /Section !+0

I. Speci l A%e ! o/ Co#ce % # /Section &E0 A. Sub!i!t e # c e Fi!5i#0 : Small fisherfol#, including sea"eed farmer, shall of greater access to the utilization of "ater resources. e assured

.. Lo00i#0 #$ Mi#i#0 Co#c e ! !i o # ! : Su $ect to the re(uirement of a alanced ecology and conservation of "ater resources, suita le areas in logging, mining and pasture areas, shall e opened up for agrarian settlements "hose eneficiaries shall e re(uired to underta#e reforestation and conservation production methods. : 'ertificates of Ste"ardship 'ontracts are issued for forest areas under the Integrated Social -orestry 2rogram.

'. Sp %! el3 Occupie $ Public A0%icultu% l L #$! : Sparsely occupied agricultural lands of the pu lic domain shall e surveyed, proclaimed and developed as farm settlements for (ualified landless people. : : Agricultural land allocations shall e made for ideal family%size farms. Dncultivated lands of the pu lic domain shall e made avail a le on a lease asis to interested and (ualified parties. 2riority shall e given to those "ho "ill engage in the development of capital%intensive, traditional or pioneering crops.

8. I$le' Ab #$o # e $ ' Fo%eclo ! e ! #$ Se;u e ! t e % e $ L #$! : Idle, a andoned, foreclosed and se(uestered lands shall e planned for distri ution as home lots and family%size farmlots to actual occupants. If land area permits, other landless families shall e accommodated in these lands. >. Ru% l Wo" e # : All (ualified "omen mem ers of the agricultural la or force must e guaranteed and assured e(ual rights to o"nership of the land, e(ual shares of the farm*s produce, and representation in advisory or appropriate decision%ma#ing odies. -. Vete% # ! #$ Reti%e e ! : 9andless "are veterans and veterans of military campaigns, their surviving spouses and orphans, retirees of the Armed -orces of the 2hilippines and the Integrated 6ational 2olice, returnees, surrenderees and similar eneficiaries shall e given due consideration in the disposition of agricultural lands of the pu lic domain. C. A0%icultu% e G% $u t e ! : Craduates of agricultural schools "ho are landless shall e assisted y the government in their desire to o"n and till agricultural lands.

II. P%o0% " I"ple " e # t ti o # A. P%e!i$e # ti l A0% %i # Re/o% " Cou#cil 32A1'4 1. 'omposition /Section &10 a. 'hairman: 2resident of the 2hilippines . Gice%'hairman: Secretary of Agrarian 1eform c. @em ers: i. Secretary of Agriculture= ii. Secretary of >nvironment and 6atural 1esources= iii. Secretary of .udget and @anagement= iv. Secretary of 9ocal Covernment= v. Secretary of 2u lic <or#s and Jigh"ays= vi. Secretary of Trade and Industry= vii. Secretary of -inance= viii. Secretary of 9a or and >mployment= ix. 8irector%Ceneral of 6ational >conomic and 8evelopment Authority= x. 2resident of 9and .an# of the 2hilippines= xi. Administrator of 6ational Irrigation Authority= xii. Three 3!4 representatives of affected lando"ners to represent 9uzon, Gisayas and @indanao= and xiii. Six 3+4 representatives of agrarian reform eneficiaries, t"o 324 each from

9uzon, Gisayas and @indanao, provided that one of them shall cultural communities. 2. -unctions and 8uties />7 22B, 1BA,0

e from

a. -ormulate and implement policies, rules and regulations necessary to implement the 'A12= . 1ecommend small farm economy areas= c. Schedule the ac(uisition and distri ution of specific agrarian reform areas= and d. 'ontrol mechanisms for evaluating the o"ner*s declaration of current fair mar#et value. !. >xecutive 'ommittee 3>I'7@4 of the 2A1' /Section &20 a. There shall e an >xecutive 'ommittee of the 2A1' "hich shall meet and decide on any and all matters in et"een meetings of the 2A1': 2rovided, ho"ever, That its decision must e reported in the 2A1' immediately and not later than the next meeting. . 'omposition: The Secretary of Agrarian 1eform shall e the 'hairman and its mem ers shall e designated y the 2resident, ta#ing into account Article IIII, Section ) of the 'onstitution 31ights of farmers to participate in the planning, organization and management of the 'A124. &. 2A1' Secretariat /Section &!0 a. A 2A1' Secretariat is esta lished to provide general support and coordinative services such as inter%agency lin#ages, program and pro$ect appraisal and evaluation and general operations monitoring for the 2A1'. . 'omposition: The Secretariat shall e headed y the Secretary of Agrarian 1eform "ho shall e assisted y an Dndersecretary and supported y a staff "hose composition shall e determined y the 2A1' >xecutive 'ommittee. .. P%o1i#ci l A0% %i # Re/o% " Coo%$i# ti # 0 Co" "i tt e e 32A1''7@4 1. 'omposition 3Section &&4 a. 'hairman: an appointee of the 2resident upon recommendation of the 2A1' >I'7@= . >xecutive 7fficer: 2rovincial Agrarian 1eform 7fficer= c. @em ers: i. 1epresentative from the 8epartment of Agriculture= ii. 1epresentative for the 8epartment of >nvironment and 6atural 1esources= iii. 1epresentative for the 9and .an# of the 2hilippines= iv. 7ne representative each from existing farmers* organizations, agricultural cooperatives and non%governmental organizations in the province= v. T"o representatives from the lando"ners, at least one of "hom shall e a producer representing the principal crop of the province= vi. T"o representatives from farmers and farm"or#er eneficiaries, at least one of "hom shall e a farmer or farm"or#er representing the principal crop of the province= and vii. In areas "here there are cultural communities, there shall e one repre% sentative from them.

2. -unctions and 8uties a. 'oordinate and monitor the implementation of the 'A12 in the province= : The 2A1' shall provide the guidelines for a province% y%province implementation of the 'A12. The ten%year program of distri ution of pu lic and private lands in each province shall e ad$usted from year to year y the province*s 2A1''7@, in accordance "ith the level of operations previously esta lished y the 2A1', in every case ensuring that support services are availa le or have een programmed efore actual distri ution is effected. /Section &)0 . 2rovide information on the follo"ing: i. 2rovisions of the 'A12= ii. Cuidelines issued y the 2A1'= and iii. 2rogress of the 'A12 in the province. '. & % # 0 3 A0% %i # Re/o% " Co" "i tt e e 3.A1'4 1. 'omposition />7 22B, 1BA,0 : a. . c. d. e. f. g. h. i. The .A1' shall follo"ing: e operated on a self%help asis and "ill e composed of the

1epresentatives of farmer and farm"or#er eneficiaries= 1epresentatives of farmer and farm"or#er non% eneficiaries= 1epresentatives of agricultural cooperatives= 1epresentatives of other farmer organizations= 1epresentatives of the .arangay 'ouncil= 1epresentatives of non%governmental organization 36C7s4= 1epresentatives of lando"ners= 8epartment of Agriculture official assigned to the area= 8epartment of >nvironment and 6atural 1esources official assigned to the area= $. 8A1 Agrarian 1eform Technologist assigned to the area= and #. 9and .an# of the 2hilippines representative. 2. -unctions />7 22B, 1BA, and Section &,0 : The .A1' shall have the follo"ing functions:

a. @ediate and conciliate et"een parties involved in an agrarian dispute= . Assist in the identification of (ualified eneficiaries and lando"ners "ithin the arangay= c. Attest to the accuracy of the initial parcellary mapping of the eneficiary*s tillage= d. Assist (ualified eneficiaries in o taining credit from lending institutions= e. Assist n the initial determination of the value of the land= f. Assist the 8A1 representative in the preparation of periodic reports on the 'A12 implementation= g. 'oordinate the delivery of support services to eneficiaries= h. 2articipate and give support in the implementation of 'A12= and i. 2erform such other functions as may e assigned y the 2A1' and 8A1.

8. Ot5e%! 1. 6o in$unction, restraining order, prohi ition or mandamus shall e issued y the lo"er courts against the 8A1, 8A, 8>61 and 87H in their implementation of 'A12. /Section +A0 : This does not apply to the Supreme 'ourt.

2. The 2A1', in the exercise of its functions, is here y authorized to call upon the assistance and support of other government agencies, ureaus and offices, including government%o"ned or controlled corporations. /Section +B0 III. A$"i#i!t% ti1 e A$<u$ic tio # A. 9u%i!$ictio # 1. The 8epartment of Agrarian 1eform is here y vested "ith p%i" %3 <u%i!$ictio # to $ete % "i # e #$ $<u$i c te 0% %i # %e/o% " " tt e % ! #$ !5 ll 5 1e e4clu !i1e o%i0i# l <u%i!$ic tio# o1e% ll " tte % i#1ol1 i#0 t5e i"ple " e # t ti o # o/ 0% %i # %e/o% " , except those falling under the exclusive $urisdiction of the 8epartment of Agriculture and the 8epartment of >nvironment and 6atural 1esources. /Section )E0 2. 8A1 Ad$udicator a. 8epartment of Agrarian 1eform Ad$udication .oard 38A1A.4 i. >xercises oth original and appellate $urisdiction ii. >xercises functional supervision over the 1A1A8s and 2A1A8s . 1egional Agrarian 1eform Ad$udicator 31A1A84 i. >xecutive Ad$udicator in his region ii. 1eceives, hears and ad$udicates cases "hich the 2A1A8 cannot handle ecause the latter is dis(ualified or inhi its himself or ecause the case is complex or sensitive c. 2rovincial Agrarian 1eform Ad$udicator 32A1A84 !. >xclusive Hurisdiction of the Secretary of Agrarian 1eform : M tte % i#1ol1i#0 !t%ictl3 t5e $"i #i!t% ti 1 e i"ple " e # t tio# o/ t5e CARP #$ 0% %i # l 6! #$ %e0ul tio # ! shall e the exclusive prerog% ative of and cogniza le y the Secretary of Agrarian 1eform

.. &ARC Ce%ti/ic tio # Re;ui%e " e # t 1. The 8A1 shall not ta#e cognizance of any agrarian dispute of controversy unless a certification from the .A1' that the dispute has een su mitted to it for mediation and conciliation "ithout any success of settlement is presented. /Sec% tion )!0

-ailure to present a .A1' certification is not a ground for dismissal of the action. The complainant or petitioner "ill e given every opportunity to secure the .A1' certification. /1ule III, Section 13c4 of the 8A1A. 1ules0

2. >xceptions to the .A1' 'ertification 1e(uirement: a. -ailure of the .A1' to issue a certification "ithin thirty 3!E4 days after a matter or issue is su mitted to it= . The re(uired certification cannot e complied "ith for valid reasons li#e the non%existence or non%organization of the .A1' or the impossi ility of convening it. A certification to that effect may e issued y the proper agrar% ian reform officer in lieu of the .A1' certification= /1ule III, Section 13 4 of 8A1A. 1ules0 c. The issue involves the valuation of the land to determine $ust compensation= /1ule III, Section 2 of 8A1A. 1ules0 d. The parties reside in different arangays, unless they ad$oin each other= : <here the lands involved in the dispute straddles t"o or more arangays, the .A1' of the .arangay "here the iggest portion lies, shall have the authority to conduct the mediation or conciliation proceeding. e. 7ne of the party is a pu lic or private corporation, a partnership, association or $uridical person, or a pu lic 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 la", rule, guideline or policy= and g. The issue is eyond the pale of mediation, conciliation or compromise, as determined y the Secretary of Agrarian 1eform. '. Rule! o/ P%oce $ u % e 1. It shall not e ound y technical rules of procedure and evidence ut shall proceed to hear and decide all cases, disputes or controversies in a most expeditious manner, employing all reasona le means to ascertain the facts of every case in accordance "ith $ustice and e(uity and the merits of the case. /Section )E0 2. 1esponsi le leaders shall e allo"ed to represent themselves, their fello" farmers, or their organizations in any proceedings efore the 8A1 /Section )E0 !. To discourage frivolous or dilatory appeals from the decision or order on the local or provincial levels, the 8A1 may impose reasona le penalties, including ut not limited to fines or censures upon erring parties. /Section )20 8. E#/o%c e " e # t Po6e % ! 1. It shall have the po"er to summon "itnesses, administer oaths, ta#e testimony, re(uire su mission of reports, compel the production of oo#s and docu ments and ans"ers to interrogatories and issue su poena, and su poena duces tecum and to enforce its "rits through sheriffs or other duly deputized officers. It shall li#e"ise have the po"er to punish direct and indirect contempt in the same manner and su $ect to the same penalties as provided in the 1ules of 'ourt. /Section )E0 2. The 8A1 has executed a @emorandum of Agreement "ith the 2hilippine 6ational 2olice, in order that the latter may assist the 8A1 in the enforcement of its

orders. >. 9u$ici l Re1ie 6 1. Any decision, order, a"ard or ruling of the 8A1 on any agrarian dispute or on any matter pertaining to the application, implementation, enforcement or interpretation of the 'A19 and other pertinent la"s on agrarian reform may e rought to the Cou%t o/ Appe l! b3 ce%tio % %i 6it5i# /i/te e # 7)58 $ 3! /%o " %eceipt o/ cop3 t5e%e o / . /Section )&0 2. The findings of fact of the 8A1 shall su stantial evidence. e final and conclusive if ased on

!. 6ot"ithstanding an appeal to the 'ourt of Appeals, the decision of the 8A1 shall e immediately executory. /Section )E0 IIII. Speci l A0% %i # Cou%t

A. 9u%i!$ictio # /Section ),0 1. The Special Agrarian 'ourts 31egional Trial 'ourts4 shall have o%i0i# l e4clu!i1 e <u%i!$ictio # over: #$

a. All petitions for the determination of $ust compensation to lando"ners= and . The prosecution of all criminal offenses under the 'A19. 2. The Special Agrarian 'ourts, upon their o"n 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 "ritten report thereof "ith the court. .. Appe l! 1. Appeal from the 8ecision of the Special Agrarian 'ourt : <ithin /i/te e # 7)58 $ 3! from the receipt of the decision of the Special Agrarian 'ourt, an appeal may e ta#en y /ili#0 petitio# /o% %e1ie 6 "ith the 'ourt of Appeals.

2. Appeal from the 8ecision of the 'ourt of Appeals : <ithin #o#= e4te # $i ble pe%io$ o/ /i/te e # 7)58 $ 3! from the receipt of the decision of the 'ourt of Appeals, an appeal may e ta#en y /ili#0 petitio# /o% %e1ie 6 "ith the Supreme 'ourt. #$ O"i!!io #! #$ O"i!!io #!

IIG.

P%o5ibite $ Act!

A. P%o5ibite $ Act!

1. Section ,!. The follo"ing are prohi ited. a. The o"nership or possession, for the purpose of circumventing the provisions of 'A19, of agricultural lands in excess of the total retention limits or a"ard ceilings y any person, natural or $uridical, except those under collective o"nership y farmer% eneficiaries. . The forci le entry or illegal detainer y persons "ho are not (ualified eneficiaries to avail themselves of the rights and enefits of the 'A12. c. The conversion y any lando"ner of his agricultural land into non%agricultural uses "ith intent to avoid the application of 'A19 to his landholdings and to dispossess his tenant farmers of the land tilled y them. d. The "illful prevention or o struction y any person, association or entity of the implementation of the 'A12. e. The sale, transfer, conveyance or change of the nature of lands outside of ur an centers and city limits either in "hole or in part after the effectivity of 'A19. i. Dpon the effectivity of 'A19, any sale, disposition, lease, management contract or transfer of possession of private lands executed y the original lando"ner in violation of 'A19 shall e null and void= 2rovided, ho"ever, that those executed prior to 'A19 shall e valid only "hen registered "ith the 1egister of 8eeds "ithin a three 3!4 months after the effectivity of 'A19. /Section +0 : >xception: .an#s and other financial institutions allo"ed y la" to hold mortgage rights or security interests in agricultural lands to secure loans and other o ligations of orro"ers, may ac(uire title to these mortgaged properties, regardless of area, su $ect to existing la"s on compulsory transfer of foreclosed assets and ac(uisition as prescri ed under Section 1+ of 'A19 /Section ,10 ii. 8isposition of private lands is in violation of 'A19 if it is over the retention limit. iii. The date of registration of the deed of conveyance in the 1egister of 8eeds "ith respect to title lands and the date of the issuance of the tax declaration to the transferee of the property "ith respect to untitled lands shall e conclusive for this purpose. f. The sale, transfer of conveyance y a eneficiary of the right to use or any other usufructuary right over the land he ac(uired y virtue of eing a eneficiary, in order to circumvent the provisions of 'A19. /1efer to GII3>4 of this 7utline0

2. Any person "ho #no"ingly or "illfully violates the provisions of 'A19 shall e punished y imprisonment of not less than one 314 month to not more than three 3!4 years or a fine of not less than one thousand pesos 32 1,EEE.EE4 and not more than fifteen thousand pesos 32 1),EEE.EE4, or oth at the discretion of the court. If the offender is a corporation or association, the officer responsi le therefor shall e criminally lia le. .. Co#1 e % !i o # ! 1. Authority to Allo" 'onversion of Agricultural 9and for 6on%agricultural Dses

a. Dnder >xecutive 7rder 6o. 12B%A, Series of 1BA,, the 8epartment of Agrarian 1eform is authorized to: i. Approve or disapprove the conversion, restructuring or read$ustment of agricultural lands into non%agricultural uses= /Section &3$40 ii. Jave exclusive authority to approve or disapprove conversion of agricultural lands for residential, commercial, industrial and other land uses as may e provided for y la". /Section )3l40 . The 'omprehensive Agrarian 1eform 9a" provides that the 8A1 ... may authorize the reclassification or conversion on the land and its disposition. /Section +)0 2. 'onversion a. After the lapse of five 3)4 years from its a"ard, "hen the land ceases to e economically feasi le and sound for agricultural purposes, or the locality has ecome highly ur anized and the land "ill have greater economic value for residential, commercial or industrial purposes, the 8A1, upon application of the eneficiary or the lando"ner, may authorize the reclassification or conversion on the land and its disposition: 2rovided, That the eneficiary shall have fully paid his o ligation. /Section +)0 . Crounds for conversion i. -ive 3)4 years had lapsed from the a"ard of the land= ii. The land ceases to e economically feasi le and sound for agricultural purposes, or the locality has ecome highly ur anized and the land "ill have greater economic value for residential, commercial or industrial purposes= and iii. .eneficiary shall have fully paid his o ligation. c. Administrative 7rder 6o. 2E, Series of 1BB2 /Too# effect on !E 8ecem er 1BB20 : 2resident -idel G. 1amos directed the o servance y all agencies and local government units the follo"ing interim guidelines on agricultural land use conversion. i. All irrigated or irriga le agricultural lands shall not e su $ect to and non%negotia le for conversion= ii. All other agricultural lands may e converted only upon strict compliance "ith existing la"s, rules and regulations. !. 8istur ance 'ompensation : Section !+314 of 1epu lic Act 6o. !A&&, as amended provides: the agricultural lessee shall e entitled to distur ance compensation e(uivalent to five years rental on his landholding. 8isplaced farmers are entitled to distur ance compensation "hich varies depending on the agreement et"een the farmers and the lando"ners.

IG. Rel tio # to Ot5e % L 6!

A. Suppletory Application: The provisions of 1epu lic Act 6o. !A&&, as amended, 2residential 8ecree 6os. 2, and 2++, as amended, >xecutive 7rder 6os. 22A and 22B, oth Series of 1BA,= and other la"s not inconsistent "ith this Act shall have suppletory effect. /Section ,)0 .. 1epealing 'lause: Section !) of 1epu lic Act 6o. !A&&, 2residential 8ecree 6o. !1+, the last t"o paragraphs of Section 12 of 2residential 8ecree 6o. B&+, 2residential 8ecree 6o. 1E!A, and all other la"s, decrees, executive orders, rules and regulations, issuances or parts thereof inconsistent "ith 'A19 are here y repealed or amended accordingly. IGI. : E//ecti1it3 'A19 ta#es effect immediately after pu lication in at least t"o 324 national ne"spapers of general circulation. 'A19 "as printed )5 9u#e )>-- .

2repared y: Atty. -erdinand @. 'asis