AGRARIAN REFORM LAW

RA 6657 Comprehensive Agrarian Reform Law of 1988

Case Assignment
1.
Hacienda Luisita Inc. vs. Presidential Agrarian Reform Council et al
GR No. 171101
July 5, 2011
653 SCRA 154
Also SC Resolution dated April 24, 2012
Reveiwer on Comprehensive Agrarian Reform Law of 1988:
WHAT IS RA 6657?
The Comprehensive Agrarian Reform Law (CARL) of 1988 (Republic Act No. 6657), which
instituted CARP, was signed into law on June 10 of that year. This legislative act was done in
accordance with the constitutionally-mandated policy of promoting comprehensive rural
development and agrarian reform. The law defines agrarian reform as the redistribution of
lands, regardless of crops or fruits produced, to farmers and regular farm workers who are
landless, irrespective of tenurial arrangement, to include the totality of factors and support
services designed to lift the economic status of the beneficiaries and all other arrangements
alternative to the physical redistribution of lands, such as production or profit-sharing, labor
administration, and the distribution of shares of stock which will allow beneficiaries to receive a
just share of the fruits of the lands they work.
WHY SHOULD YOU CARE ABOUT AGRARIAN REFORM?
The agrarian problem in the Philippines dates back to as early as the pre-Spanish period when the
existence of social classes determined the patterns of land use. Nearly 400 years of Spanish rule
only worsened the socio-economic disparity among Filipinos as land ownership became highly
concentrated among a privileged few. While our American colonizers and past leaders attempted
to correct the sorry state of land ownership in the country through various reform measures, this
centuries-old problem is far from over as 80% of our land is still owned by only 20% of our
people. These figures become even more alarming when we consider that farmers belong to the
second largest occupation group in our country today, second only to laborers and unskilled
workers. Add to this, the grim fact that 4.3 Million families or 26,5 million Filipinos - more
than 1/3 of the countrys population - were living below the poverty line during the last census
in 2000. Indeed, there is a need for a sustainable, genuine agrarian reform program in the
Philippines.
WHEN WAS THE COMPREHENSIVE AGRARIAN REFORM PROGRAM (CARP)
INSTITUTED?
The Comprehensive Agrarian Reform Program (CARP)was instituted on June10, 1988. Touted

as the centerpiece program of President Corazon Aquinos administration, it was considered the
most comprehensive of all the redistributive programs established by past administrations. Its
enabling law, Republic Act 6657, aimed not only to grant land to the tillers, but also to provide
them with the necessary support services that would ensure the productivity of the landgiven to
them under the law.
Among the various land reform laws that have been enacted by various administrations, from the
Commonwealth government to the administration of the late President Ferdinand Marcos, only
the Comprehensive Agrarian Reform Law (CARL) has the mandate of the Constitution.
Section 21 of Article II or the Declaration of Principles and State Policies asserts, "the State shall
promote comprehensive rural development and agrarian reform." The National Economy and
Patrimony Article (XXII), in Section 1, par. 2 reiterates, "the State shall promote industrialization
and full employment based on sound agricultural development and agrarian reform." Meanwhile,
Article XIII, or the Social Justice and Human Rights article provides for "Agrarian and Natural
Resources Reform."
WHAT LANDS DOES THE PROGRAM COVER?
Scope
The Comprehensive Agrarian Reform Law covers, regardless of tenurial arrangement and
commodity produced, all public and private agricultural lands as provided in Proclamation No.
131 and Executive Order 229, including other lands of the public domain suitable for agriculture.
Of the 8.1 million hectare-revised CARP scope, the Department of Agrarian Reform (DAR) is
tasked to distribute 4.3 million hectares. The Department of Environment and Natural Resources
(DENR), on the other hand, is tasked with the distribution of 3.8 million hectares.
Schedule of implementation
The distribution of all lands shall be implemented immediately and completed within ten years
from the effectivity of the law.
Retention limits
Under RA 6657, the landowner retains a maximum of five hectares. Three hectares is awarded to
each child of the landowner provided that he/she is at least fifteen years of age, and that he/she is
actually tilling the land or directly managing the farm. The landowner has the right to choose
which area to retain. In case the retained area is tenanted, the tenant may choose to remain in the
retained area and be a leaseholder, or be a tenant in another agricultural land. The tenant is given
one year to exercise his option from the time the landowner chooses the area for retention.
Landowners covered by Presidential Decree 27 are allowed to keep their retained lands under the
law.
WHO ARE QUALIFIED AS AGRARIAN REFORM BENEFICIARIES (ARBS)?

Section 22 of RA 6657, states that qualified farmer beneficiaries are as follows:

a. Agricultural lessees and share tenants;
b. Regular farmworkers;
c. Seasonal farmworkers;
d. Other farmworkers;
e. Actual tillers or occupants of public lands;
f. Collective or cooperatives of the above beneficiaries; and
g. Others directly working on the land
WHO CAN QUALIFY AS AN AGRARIAN REFORM BENEFICIARY (ARB)?
In Section 22 of RA 6657, the following can qualify:
1. Landless as defined in RA 6657. One is considered landless if he/she owns
less than 3 hectares of agricultural land;
2. Filipino citizen;
3. At least 15 years of age or head of the family at the time of acquisition of
property; and
4. Has willingness, ability and aptitude to cultivate and make the land
productive as possible.
HOW DOES DAR IDENTIFY AN ARB?
The DAR in coordination with the Barangay Agrarian Reform Community (BARC)
registers all agricultural lessees, tenants and farmworkers who are qualified to
be beneficiaries of CARP. These potential beneficiaries with the assistance of the
BARC and the DAR shall provide the following data:
a. Names and members of their immediate farm household;
b. Owners or administrators of the lands they work on and length of tenurial
relationship;
c. Location and area of the land they work;
d. Crops planted; and
e. Share in the harvest or amount of rental paid or wages received
(Section 15 of RA 6657; DAR AO 10 series of 1989 and AO No. 7 series of 2003)

WHAT ARE THE OBLIGATIONS OF AN ARB?

His or her obligations would be as follows:
The agricultural productivity of the land should be maintained; and
The change in the nature of the use of the land shall be protected except with
the approval of the DAR under its rules on conversion or exemption
ARE IDLE AND ABANDONED LANDS COVERED UNDER THE CARP?
Yes. Pursuant to Section 7 in relation to Section 3 (e) of the Comprehensive
Agrarian Reform Law (CARL), idle and abandoned agricultural lands are priority
areas for coverage under CARP.

WHAT IS A COMPULSORY ACQUISITION?

Compulsory acquisition is a mode of land acquisition whereby private
agricultural lands are acquired by the government in accordance with the
procedure described in Section 16 of RA 6657.
WHAT TYPES OF AGRICULTURAL LAND ARE COVERED UNDER THE COMPULSORY
ACQUISITION?
All private agricultural lands (PAL) which has become due under the phase of
implementation as provided under Section 7 of RA 6657 are included in
compulsory acquisition.
WHAT ARE PRIVATE AGRICULTURAL LANDS (PAL)?
These are lands already titled in the name of private individuals. These also
include agricultural lands which have a Torrens title, free-patent titles and those
with homestead patents.
ARE UPLANDS WHICH ARE BEING AGRICULTURALLY DEVELOPED EXEMPTED
FROM CARP COVERAGE?
If at the advent of CARP said lands are already agriculturally developed and
productive, they are not exempted from CARP. However, for those lands which
are above 18% slope, they are exempted from CARP coverage. (Sec. 10 of RA
6657
WHAT IS THE ALLOWED RETENTION LIMIT UNDER CARP?
Under Sec. 6 of RA 6657, a landowners retention limit shall not exceed 5
hectares. Three (3) hectares may be awarded to a child of the landowner subject
to the following qualifications:
1. at least 15 years of age during the CARP coverage; and
2. actually tilling the land or directly managing the farm
CAN A MARRIED COUPLE AVAIL OF 5 HECTARES EACH?
It would depend by the nature of their property relations.
If the marriage was solemnized before 3 August 1988 then it is governed by the
Civil Code in which case, in the absence of an agreement for the separation of
the property, spouses may retain a total of not more than 5 hectares of
agricultural lands from their conjugal properties.
However, if either or both of them are landowners in their own respective rights,
they may retain not more than 5 hectares each from their respective
landholdings. On the other hand, if the marriage was contracted under the new
Family Code, they may retain 5 hectares each if they executed a judicial
separation of properties prior to the marriage. In the absence thereof, only a
total of 5 hectares can be retained.
Can the Church become a landowner of an agricultural land?

A religious institution like the Catholic church is considered a juridical person,

meaning it has a legal personality like that of an individual. It can maintain up to
5 hectares of agricultural lands.
Are schools and state universities covered by CARP?
They are exempted from CARP coverage if the use of the land is directly and
exclusively for educational purposes. (Section 10 of RA 6657)
What about military reservations, are they exempted from CARP coverage?
Pursuant to Sec. 10, RA 6657, all defense sites and military reservations are
considered inalienable (cannot be disposed) public lands because ownership is
state owned.
What are landed estates?
Landed estates are former haciendas or landholdings or private individuals or
corporations which have been acquired by the government under different laws,
for redistribution and resale to deserving tenants and landless farmers.
Is landed estate acquired by the qualified beneficiaries free of charge?
No. The qualified beneficiary will pay the purchase price of the land. Other
costsincluding survey fees are free.
What is the difference of stock distribution option from production and profit
sharing?
In a stock distribution option (non-land transfer program of CARP), the farmers
become stock owners, meaning, they are given rights to purchase capital
stocks, equities or shares from the corporate landowners and association.
Having acquired shares of stocks, dividend and other financial benefits and
representation in the seat of the board of directors; they also acquire
management rights in the corporate farm concerned. (Section 31-Corporate
Landowners, RA 6657)

In a production and profit sharing scheme, there is a distribution of shares of

production and profit for the farmworkers who are awaiting the eventual transfer
of land ownership to them. (Section 32 of RA 6657)
While the ARBs await the full distribution of the lands in a big farm corporation.
A corporation who earns 5 million or more in a year should give the farm
workers or their farmers association a 3% gross sales of the land production
within 60 days of the fiscal year as additional compensation. (Section 32 RA 6657)
Are farm lands under Multinational Corporations covered by CARP?
Section 31 of RA 6657 states that farm corporations and multinationals are
covered under CARP.
Can an agricultural land be converted to a residential land?
Yes. Section 65 of RA 6657 and AO 1 series of 2002 states that after the lapse of
five years from its award, when the land ceases to be agriculturally sound and

economically feasible or if the locality has become urbanized and the land will
have greater economic value for residential, commercial or industrial purposes.
What are some of the guidelines for converting agricultural lands into
residential, commercial and other non-agricultural uses?
It is a long process, but those who want to convert their lands should coordinate
with the Center for Land Use Policy and Planning Implementation (CLUPPI) office
of the DAR.
Among others, they should get an environmental compliance certificate from the
DENR if Environmentally Critical Area (ECA) or Environmentally Critical Project
(ECP). They also have to coordinate with the LGU regarding the present
classification of the land depending on the class type of the municipality where
the land is located.
(A.O. 1 series of 2002)

Urban centers and city limits, either in whole or in part after the effectivity of RA
6657
What agricultural lands do not require conversion clearance?
Lands already classified as commercial, industrial and residential prior to the
effectivity of CARP law on 15 June 1988 do not require conversion clearance.
What is an illegal conversion?
Illegal conversion is the conversion of any landowner of his/her agricultural land
into any non-agricultural use with intent to avoid the application of RA 6657 to
his/her landholding and to dispossess his/het tenant farmers of the land tilled by
them; or the sale, transfer conveyance or change of the nature of lands outside

What are the factors in determining just compensation?

Under RA 6657, Section 17, the following factors are considered in the
determination of
just compensation:
Current value of the property;
Cost of Acquisition;
Official assessment by government assessors;
Nature of land;
Non-payment of taxes or loans secured from
government financing institutions;
Sworn value by he landowner;
Income;
Declaration of taxes;
Economic and social benefits contributed by
Farmers; and
Real/actual use.
Are all these factors considered in just compensation?

RA 6657 requires that all these ten factors be considered in the valuation
formula either as direct input, as replacement value, as a ceiling or
subsumed in the direct factors.
Do these factors controls what the final value of just compensation will be?
These factors are considered as standards to guide officials in determining just
compensation but these should not control or limit such determination
Who is in charge in the summary administrative proceedings in the preliminary
determination of just compensation?
The venue for the summary administrative proceedings in the preliminary
determination of just compensation is dependent upon the amount of
compensation
PARAD Less than 5 million Php
RARADmore than 5 million Php
These summary administrative proceedings are merely preliminary
determination of just compensation due to the landowner. The landowner has
the right to question such determination of the adjudication board before the
Special Agrarian Reform Courts.
Although the final determination of the value of the land is a judicial function,
unless the landowner or any party-in-interest files a case with the SAC within 15
days from receipt of the decision, then the decision of the adjudicator is final
and executor.
What is the amortizing period for RA 6657 and PD 27 lands?
For CARP awarded lands, it is 30 years amortizing period (Sec. 26 of RA 6657).
For PD 27 lands, the amortization period is 20 annual amortizations at 6% per
annum with 2% rebate if paid on time. The farmer beneficiary however, may pay
in full before the 20th year or may request the LBP to structure a repayment
period of less than 20 years (Section 6 of EO 228)
Are land transactions under CARP required to pay taxes?
Section 66 of RA 6657 states that land transactions under the CARP are
exempted from the taxes arising from capital gains as well as payment of
registration fees and all other taxes and fees for the conveyance or transfer
thereof.
How much does an ARB pays to Land Bank?
An ARB pays in 30 equal annual payments at 6 % per annum interest and with
2% less deduction for updated amortization payments.
1 3 years- payments shall not exceed 2.5% of the value of the annual gross
production (AGP)
4 & 5 years- not to exceed 5% of the value of the AGP
6 - 30 year- not to exceed 30% of the value of the AGP
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Can a landowner get back his lands from an ARB?

He cannot get back his lands from an ARB. However, if he has not yet been fully
paid he can follow it up with the Land Bank of the Philippines where he will be
paid in cash or in LBP bonds.
In case of default of payment of monthly amortization, is an ARB obliged to pay
additional interest?
In case of fortuitous event or force majeure circumstances like typhoons where
an ARB is not able to harvest, he or she is obliged to pay the Land Bank in the
next cropping season without additional interest.
As much as possible, the government does not want to force the ARBs to pay
additional interests. However, if for three (3) annual amortizations, the
ARB is still not able to pay the LBP, the awarded land will be forfeited and
awarded to other qualified beneficiaries (Section 26 of RA 6657)
Are CARP farmer beneficiaries allowed to sell their lands?
Section 27 of RA 6657 states that within ten years, FBs cannot sell, transfer or
donate the lands awarded to them except through hereditary succession, or if
sold back to the State through the Land Bank of the Philippines or to another
qualified beneficiary within the ten-year period.
However, if an ARB sells, transfers, leases or conveys his/her rights over the
awarded
land except to those mentioned above, this will be a ground for disqualification
as a beneficiary of CARP, PD 27 and other agrarian laws (DAR MC No. 19-1990).
What if the ten-year period has lapsed, can ownership of awarded agricultural
lands be transferred or sold?
Yes, transferability/ownership can be allowed, provided the agricultural land has
been
fully paid and provided further that the transferee thereof is qualified under the
CARP and does not own more than 5 hectares of agricultural land. Preference of
transferability however, should be to the direct cultivators, the government thru
LBP, or other qualified beneficiaries. (Section 27, RA 6657)
Does an awardee still qualify to become a beneficiary after disposing his
landholding?
An awardee who shall dispose of his/her landholding shall no longer be qualified
to become beneficiary under CARP. However, the children or spouse of the
beneficiary has the right to repurchase the acquired land which was transferred
to the DAR within a period of two years.
What are the required documents in transferring the ownership of an awarded
landholding to another beneficiary?
The awardee/transferor is required to submit the following documents attached
to his/her letter request to transfer the awarded land to another beneficiary:
Certificate of full payment of amortization to be issued by LBP
Certificate of full payment of irrigation fees
Certification re: loans
Tax Declaration (Treasurers Office)

Affidavit of transferorno pending case at the DARAB or any of its adjudicators

Affidavit of aggregate area of landholding
Certified copy of ITR
Residence Certificate
Certification to be issued by the Provincial Assessors Office re: extent of

agricultural landholding within province.

Can a registered EP/CLOA issued to ARBs be corrected and cancelled?
Yes. EP/CLOAs issued to ARBs maybe corrected and cancelled for violations of
agrarian reform laws, rules and regulations. These are cases of lands which are
found to be exempted/excluded from PD 27/ EO No. 228 or CARP coverage or
part of the landowners retained area.
Who has the authority to correct or cancel the registration of EP/CLOAs?
Registered EP/CLOAs whether distributed or not may only be corrected or
cancelled by order of the Provincial or Regional Adjudicator which has
jurisdiction over the property in accordance with the DARAB rules and
regulations.
When is the effectivity of the rules on cancellation of EP/CLOA?
The rules on correction and cancellation shall apply to the registered EP/CLOA
from the time and date of issuance by the DAR up to the tenth year.
However, if the ARB concerned has not yet fully paid his/her obligations to the
land, in the case of public lands, beyond the tenth year from the date of the
issuance of the CLOA, then these rules shall continue to apply . (DAR AO No 2, 1994)
Can an Agrarian Reform Beneficiary (ARB) acquire title to his/her land awarded
through PD 27 or RA 6657?
Landownership of the beneficiary of CARP shall be evidenced by a Certificate of
Land Ownership Award (CLOA). The certificate shall contain the restrictions
provided in RA 6657 and shall be recorded in the Registry of Deeds (ROD)
concerned and annotated on the certificate of title.
A Certificate of Land Transfer shall be issued in duplicate by the DAR for every
land brought under Operation Land Transfer. The original shall be kept by the
beneficiary and the duplicate in the Registry of Deeds. After the ARBss shall
have fully complied with the requirements for a grant of title under PD 27, an
Emancipation Patent (EP) shall be issued by DAR.
Are ARBs required to register their lands acquired through PD 27 and RA
6657?
Yes. The DAR shall prepare by automated data processing a special registry book
to be known as the Provisional Register of Documents issued under PD 27
which shall be kept and maintained in every ROD throughout the country.
Said registry shall be registry of:
All Certificate of Land Transfer (CLT) issued pursuant to PD No. 27; and
All subsequent transactions affecting Certificate of Land Transfer such as
adjustments, transfer, duplication and cancellations of erroneous CLTs.

Are ARBs required to pay for the registration of land titles?

No fee, premium or tax of any kind shall be charged or imposed in connection
with the issuance of an original emancipation patent and for the registration of
related documents.
When can an EP/CLOA-title be issued to the qualified beneficiaries?
Upon the approval and distribution of the EP/CLOA by the ROD it will be
distributed to the qualified beneficiaries.
What documents will show that the beneficiary is the ultimate owner of the
awarded land under CARP?
The Certificate of Landonership Award (CLOA) is a proof of ownership of the
agrarian reform beneficiary with respect to private agricultural land covered
under RA 6657.
What are the grounds in cancelling an awarded CLOA/EP?
An awarded CLOA/EP an be cancelled if the beneficiary violates any of the
following:
(Section 4, AO 6, Series of 2011)

The landholding involves the retention area of the landowner;

The landholding is exempted from coverage;
Defective Notice of Coverage;
The landholding is outside the authority of DAR to dispose of;
Erroneous issued titles as a result of erroneous technical description and

cancellation of Los title prior to issuance of the Certificate of Deposit

Misuse or diversion of financial and support services extended to the
beneficiary;
Material misrepresentation of the beneficiaries basic qualifications under AR
laws;Sale, transfer, lease, or other forms of conveyance by the beneficiary of
rights over the land in circumvention of AR laws;
Continued neglect or abandonment of the awarded land over a period of 2
calendar years;
Absolute and deliberate failure to pay an aggregate of 3 consecutive
amortizations to the Land Bank
Conversion to non-agri use;
Waiver of rights to awarded lands;
Beneficiaries surrender of awarded land to LO or other non-beneficiary
Misuse of the land;
Other acts or omissions that circumvent laws related to AR implementation.
What is the CARP rule on foreclosed agricultural land?
Section 25 of RA 337, generally know as The General Banking Act provides
that acquired and mortagaged agricultural lands foreclosed by banks shall be
disposed of within five (5) years after foreclosure
What are the strategic directions of DAR as it faces the challenges in CARP
implementation?
1. Completing the land acquisition and distribution (LAD) in the CARPER balance

focusing on large-sized private agricultural lands; Redeployment of competent

DAR personnel to the 20 high LAD provinces; Streamline LAD processes and
procedures; and Enhance the database of landholdings for ease in targeting and
monitoring the LAD;
2. Prioritizing the subdivision of collective Certificates of Land Ownership Awards
(CLOAs) involving LBP-compensable lands;
3. Fast tracking the documentation and settlement of landowner compensation
for already distributed lands;
4. Synergizing and rationalizing the efforts of the CARP implementing agencies
in all processes of LAD;
5. Partnering with the civil society organizations(CSOs) in the delivery of LTI
services, particularly the large-sized private agricultural lands (PAL);
6. Adopting a job-sharing scheme wherein under the ONE-DAR concept,
provinces will share responsibilities (low-LAD provinces with high LAD provinces)
to minimize the need to hire new personnel; and
7. Increasing the utilization of the services of geodetic engineers to assist the
provincial and municipal offices in land acquisition considering the difficulty of
hiring new personnel and the demands of a post-2014 scenario.

Status of CARP Implementation

What has been accomplished so far?
According to land distribution accomplishment figures in December 2005, the DAR has already
distributed 3.65 million hectares out of the 4.3 million revised scope. The DENR, on the other
hand, has already distributed 2.93 million hectares out of its target of 3.8 million hectares.
Therefore, the remaining balance for CARP stands at 1.52 million hectares. However, according
to the DARs Inventory of CARP Scope balance in October 2006, the total area of landholdings
in the balance is actually 1.9 million hectares. This means that the DAR balance is 0.38 million
hectares more than the December 2005 figures.