AGRARIAN LAW by Barte

INTRODUCTION
A. DEFINITIONS AND TERMS
Reform presupposes that something is defective, hence, needs
reformation and correction.

b. Share Tenancy under this system of landholding, tillers work the

land as sharecroppers entitled to share in the produce of the land.
c. Leasehold Tenancy is a tenurial system which was instituted by
R.A. No. 3844 (Code of Agrarian Reforms) characterized by lessor
and lessee relationship which is created either by written or oral
agreement between the parties or impliedly by acceptance of
benefits by the landowner, or by an act of cultivation thru the
toleration of the owner.
Comments:

Land Reform denotes a broad concept of conventional and

revolutionary measures intended to correct certain defects in the
relationship between landowner and tiller regarding their rights and
obligations in the cultivation and management of landholding.
Agrarian Reform refers not only to land reform but also embraces a full
range of measures designed to improve the relationship between
landowner and tiller, employer and employee, corporate management and
stockholders, cooperatives and members, and other farmers
organizations including their economic, social and political relations with
the community and the government.
Comments:
Under the Comprehensive Agrarian Reform Law of 1998 (R.A. No. 6657),
Agrarian Reform is defined as the redistribution of lands, regardless of
crops or fruits produced, to farmers and regular farmworkers who are
landless, irrespective of tenurial arrangement.
AGRARIAN STRUCTURE
Refers to that complex set of relationships within the agricultural sector
between tenure structure, production structure and structure for
supporting services.
1. Land Tenure Structure is a concept that connotes one or more
types of land tenure system regulating the rights to ownership and control
and usages of land and the duties accompanying such rights.
a. Agricultural Tenancy refers to the manner of holding agricultural
lands.

Leasehold relationship abolished the share tenancy system under the Rice
Share Tenancy Act of 1933 as amended, P.D. No. 27 was issued by then
President Ferdinand Marcos which aside from upholding the leasehold
relationship, likewise ordained the emancipation of tenant-farmers from
the bondage of the soil, and considered them ipso facto owners of the
lands they till primarily devoted to rice and corn.
P.D. No. 27 (Tenants Emancipation Decree) likewise fixed the retention
limit for the landowner an area not exceeding seven (7) hectares,
provided, that such landowner is cultivating or will now cultivate the land,
and furthermore, that he does not own other agricultural lands of more
than seven (7) hectares.
d. Amortizing Owner a tenant-farmer whose status had been
raised automatically by operation of law from leasehold tenant to
that of amortizing owner, who makes repayments of the purchase
price of the land he tills to the Land Bank.
e. Full Owner or Owner-Cultivator is an amortizing owner (tenantfarmer) who has completed full payment of his amortization to the
Land Bank of the Philippines, and is therefore entitled to a
certificate of title under the Torrens System.
Comments:
Under R.A. No. 3844, as amended by R.A. No. 6389, there are three shifts
in the conversion of the tenurial status of tenant-farmer to full owner,
namely: share tenant to leaseholder to amortizing owner, and from
amortizing owner to full owner (owner-cultivator).
An amortizing owner by operation of law (P.D. No. 27) is entitled to an
Emancipation Patent which serves as a farmholders provisional title of

ownership to the land upon completion of his amortization repayments to

the Land Bank, or to the Landowner in cases of farmers who have been
amortizing their lands with the landowner.
f.

Owner-Cultivator is the term applied to a tenant farmer who

has attained the status of full owner and qualified beneficiary under
the Agrarian Reform Law of the Philippines.

2. Production Structure is a concept that refers to the use of the land,

nature and method of farm operation, and the process of production.
3. Structure for Supporting Services is an agrarian reform measure
designed to help the tenant tiller in the availment of credit facilities,
marketing of his products, supplying of seeds, insecticides, fertilizers,
irrigation, storage, processing and other technical assistance / services in
direct bearing to reforms of tenure and production structures.
HISTORICAL BACKGROUND
Even before the Spaniard came into these Island, the idea of private
ownership of land was not prevalent. Land was commonly owned by the
community or barangay, cultivated communally or individually by members
of the barangay.
When the Spaniard came in 1521, common ownership of land slowly took
the backseat, and private property became dominant, paving the way to
Encomienda system.
The encomienda was a vehicle used to collect taxes from Filipinos, who
tilled the land and surrendered part of their produce to the encomendero
as tribute in the form of agricultural crops, poultry, woven mats, etc.
Towards the end of the 18 th century, there was a mad scramble for wealth
thru world trade. Thus, encomienda were replaced by haciendas.

full employment, a rising standard of living, and an improve quality of life

for all.
The state shall promote a comprehensive rural development and agrarian
reform.
The State shall, by law, undertake an agrarian reform program founded on
the right of the farmers and regular farmworkers, who are landless, to own
directly or collectively the lands they till or, in the case of other
farmworkers, to receive a just share of the fruits thereof. (Art. XIII, Social
Justice and Human Rights, Sec. 4).
CONTEMPORANEOUS PRECEPTS AND MEASURES
In order to implement the 1987 Constitution, Congress passed the
Comprehensive Agrarian Reform Law of 1988. (R.A. NO. 6657) which was
signed into law by the President of the Phillippines on June 10, 1988, and
took effect on June 15, 1988. This is the main law on agrarian reform in
the Philippines today. The CARL provides that all other laws on agrarian
reform not contrary or inconsistent with the provisions of this Act shall have
suppletory effect.
LAND REFORM MEASURES RETRACED
Treaty of Paris (1898) the confiscation of friar lands and distributed
among peasants by the independent government of Malolos during the
Philippine Revolution.
Philippine Bill (1902) Limited private individual landholdings to 16
hectares, and corporate landholdings to 1,024 hectares.
Land Registrations Act (1902) Landowners were required to register
their landholdings and acquire Torrens titles to land properties.
Friar Land Act Instituted transfer of friar lands to the tenants to diffuse
the peasant unrest.

CONSTITUTIONAL MANDATES ON AGRARIAN REFORM

The state shall promote a just and dynamic social order that will free the
people from poverty through policies adequate social services, promote

Rice Share Tenancy Act (Public Act No. 4054) - which provided for a
50-50 sharing of the crop, an interest rte ceiling of 10 percent per crop
year, and safeguards against arbitrary dismissal of tenants by landlords.

Commonwealth Act.No. 278 of 1938 to buy farms and large estates for
subletting to bonafide occupants with an option to buy, thru the National
Land Settlement Administration (NLSA).

Republic Act No. 6389 (Code of Agrarian Reforms) an improvement

of R.A. No. 3844, this amendatory Act featured the creation of the
Department of Agrarian Reforms (DAR).

Sugar Cane Tenancy Contracts Act. (Act. No. 4113) makes it a duty of
the sugar central to exhibit to the tenant the receipts of the number of tons
milled by the landowner thereat.

Agrarian Reform Special Fund Act (Rep. Act. No. 6390) provided for
a special account and financial support for the Agrarian Reform Program
of the government.

Commonwealth Act. No. 103 created the Court of Industrial Relations

(CIR) which exercised jurisdiction over disputes arising from relationship
between agricultural workers and landowners.

Presidential Decree No. 2 declaring the entire nation as a land reform

area.

Commonwealth Act. No. 213 deals with the right to form legitimate
labor organizations and to enter into collective bargaining agreements
between management and labor.
Commonwealth Act No. 178 which improved the provision of Act No.
4054 the Rice Share Tenancy Act, giving more teeth and protection to the
rights of tenants of agricultural lands.
Republic Act. No. 34 amended certain Sections of the Rice Share
Tenancy Act providing for a 70 30 crop sharing method.
Republic Act No. 1160 established the National Resettlement and
Rehabilitation Administration (NARRA) of landless dissidents and other
landless farmers.
Republic Act No. 1199 (Agricultural Tenancy Act) infused an added
boost to the tenurial rights of tenant tiller.
Land Reform Act (R.A. No. 1400, 1955) - guaranteed the expropriation of
all tenanted landed estates. It set a retention limit of 300 hectares for
individually owned estates, and 600 hectares for corporate owned
estates.
Republic Act. No. 1267 An Act Creating the Court of Agrarian Relations
to try and decide all matters arising from the relationship of persons in the
cultivation and use of agricultural lands.
Republic Act. No. 3844 marked the abolition of share tenancy and / or
the system of share cropping between landowner and tenant, and the
automatic conversion of share tenants into leaseholders.

Presidential Decree No. 27 decreeing the emancipation of the tenants,

transferring to them the ownership of the land they till.
Proclamation No. 131 Instituting a comprehensive agrarian reform
program which covers, all public and private agricultural lands as provided
in the Constitution.
Executive Order No. 228 Declaring full landownership to qualified
beneficiaries covered by Presidential Decree No. 27.
Executive Order No. 229 Providing for the mechanisms for the
implementation of the comprehensive agrarian reform program, creating
the Presidential Agrarian Reform Council (PARC).
Executive Order No. 129-A Modifying Executive Order No. 129,
reorganizing and strengthening the Department of Agrarian Reform.
Republic Act No. 6657 - As primary agrarian land reform measure in the
country today, its operation covers all public and private agricultural lands,
including other lands of the public domain suitable for agriculture.
CHAPTER I
AGRICULTURAL LEASEHOLD CONCEPT
A. AGRICULTURAL LAND REFORM CODE (Rep. Act. No. 3844)
REPUBLIC ACT No. 3844 August 8, 1963
AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM CODE
AND TO INSTITUTE LAND REFORMS IN THE PHILIPPINES...
REPUBLIC ACT No. 3844

AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM CODE

AND TO INSTITUTE LAND REFORMS IN THE PHILIPPINES,
INCLUDING THE ABOLITION OF TENANCY AND THE CHANNELING
OF CAPITAL INTO INDUSTRY, PROVIDE FOR THE NECESSARY
IMPLEMENTING AGENCIES, APPROPRIATE FUNDS THEREFOR AND
FOR OTHER PURPOSES
Section 1. Title - This Act shall be known as the Agricultural Land
Reform Code.
1. PREFATORY STATEMENTS
The thrust of this legislation is the drastic abolition of share tenancy
system. It provided for the automatic conversion of the sharecropper to
the status of an agricultural lessee, governed by the system of agricultural
leasehold which is established either:
a. by agreement of the parties, whether oral or written, or
b. by operation of law.
The Agricultural Land Reform Code still finds application to the following:
a. areas which have not come within the operation and
implementation of P.D. No. 27;
b. agricultural laborers subject to the provisions of the Labor Code;
c. organization and operation of the Land Bank;
d. provisions on resettlements of farmers;
e. right to pre-emption and redemption, with respect to land-owners
retained area, should such landowner decide to sell his tenanted /
leased retained area, the tenant has the preferential right to
purchase and / or redeem the same in case the land is sold to a
third person without the tenants knowledge;
f. right of the tenant / lessee to 75% share from the standing crops;

c.

lessee to pay Land Bank on amortization basis the purchase price

of the farmholding;
The third shift which converts the status of an amortizaing owner
into full owner or owner-cultivator upon full payment of the
remaining balance of the amortization.

Section 3. Composition of Code 1. An agricultural leasehold system to replace all existing share
tenancy systems in agriculture;
2. A system of crediting rental as amortization payment on purchase
price;
3. A declaration of rights for agricultural labor;
4. A machinery for the acquisition and equitable distribution of
agricultural land;
5. An institution to finance the acquisition and distribution of
agricultural land;
6. A machinery to extend credit and similar assistance to agricultural
lessees,
amortizing owners-cultivators, owners-cultivator
and cooperatives;
7. A machinery to provide marketing, management and other
technical assistance and / or services to agricultural lessees,
amortizing owners-cultivators, owner-cultivator, cooperatives;
8. A machinery for cooperative development;
9. A department for formulating and implementing projects of agrarian
reform;
10. An expanded program of land
11. A judicial system to decide issues arising under this Code.
12. A machinery to provide legal assistance to agricultural lessees,
amortizing owners-cultivator, and owners-cultivator.
Repayment Scheme and Credit Assistance

Three shifts in the mode of acquisition

a.
b.

The automatic conversion of the status of share tenant to

leaseholder characterized by payment of fixed rentals;
The second shift which is the conversion of the leaseholder to
amortizing owner, characterized by the Land Bank purchase of
the property with a concomitant obligation imposed on the tenant-

Jurisdiction on Agrarian Disputes

All agrarian disputes are now under the cognizance of the Department of
Agrarian Reform thru the Agrarian Reform Adjudication Board.
The Department of Agrarian Reform Adjudication Board (DARAB) in turn
delegates its functions to the respective Regional and Provincial
Adjudicators of the DAR. Any decision, order, award or ruling of the DAR

on any agrarian dispute, may be brought to the Court of Appeals on

certiorari.
Special Agrarian Courts
Under the present law (R.A. No. 6657) all controversies involving the
determination of just compensation and prosecution of all criminal offenses
arising from violations of the provisions of this Act, fall under the original
and exclusive jurisdiction of Special Agrarian Courts.

Work animals means animals ordinarily employed in a farm enterprise.

Agrarian dispute means any controversy relating to terms, tenure or
condition of employment, or concerning an association or representation
of persons in negotiating, maintaining, changing or seeking to arrange
terms on conditions of employment.
Agricultural owner-cultivator means any person who, personally
cultivates his own land.

Bureau of Agrarian Legal Assistance

They shall be responsible for the development of plans and programs for
the extension of legal information to farmers; extension of legal services to
them.

Fair rental value means the value not in excess of allowable

depreciation plus 6% interest per annum.
Incapacity means any cause or circumstance which prevents the lessee
from fulfilling his contractual and other obligations under the Code.

DEFINITION OF TERMS
Modes of Land Tenure Allowed under R.A. No. 3844
Agricultural land means land devoted to any growth, including but not
limited to crop lands, saltbeds, fishponds, idle land and abandoned land.
Agricultural lessee means a person who by himself and with the aid
available from within his immediate farm household, cultivates the land
belonging to, or possessed by, another with the latters consent.

1. Leasehold system characterized by a tenant farmer

personally and actually cultivating the farmholding under a
leasehold relationship whereby the lessee pays a fixed amount of
rental whether in cash or in kind to the lessor.
2. Share tenancy

Agricultural lessor means a person, lets or grants to another the

cultivation and use of his land for a price certain.
Agricultural year means the period of time required for raising a
particular agricultural product.
Farm implements means hand tools or machineries in a farm
enterprise.
Immediate farm household - means the members of the family of the
lessee or lessor and other persons who are dependent upon him for
support.
Proven farm practices means sound farming practices.
Personal cultivation means cultivation by the lessee or lessor in
person.

3. Owner-cultivatorship
4. Cooperative-cultivatorship which is a form of agrarian
relationship among members of a cooperative who work and live
on the land as tillers in common.
5. Labor administration which employs laborers and workers on a
daily wage basis, and engaged in a large scale plantation farming
of permanent crops by their respective managers.
How Leasehold Relation is Established
1. by agreement of the parties
2. by operation of law implementation of R.A. No. 3844 providing for the
abolition of share tenancy.

Parties to Leasehold Relation

1.
2.

the landholder
the person who personally cultivates the land.

ESSENCE OF LEASEHOLD RELATION

1. It is essentially personal, in the sense that it cannot be exercised
by third persons other than the lessor himself, and the lessee who
personally cultivates the land;
2. It has the nature of an in rem or real relationship, because it
imposes a burden upon the land subject of the landholding and
continues to exist even by the death or incapacity of either party, or
the expiration of the agreement.

What then constitutes as family-size farm so as to give rise to

tenancy relationship?
Family-size farm an area of farmland that permits efficient use of labor
and capital resources of the farm family and will produce an income
sufficient to provide a modest standard of living to meet a farm familys
needs for food, clothing, shelter, and education with possible allowance for
payment of yearly installments on the land, and reasonable reserves to
absorb yearly fluctuations in income.
What now is the effect of the law to cultivator-tiller of a less than
family-size farms?

Tenurial Arrangement of Leasehold

Such landholder-tiller or tiller-sharer, is at most considered as a mere

caretaker before the eyes of the law who is not entitled to the security of
tenure.

It makes it a penal offense to eject a tenant illegally from his holding

except upon approval of the court.

Should the landholding be sold or alienated to a new owner, what

happens to the rights and obligations of the transferee and his heirs?

Doctrine on security of land tenure

The transferee and his heirs are subrogated to the rights and obligations
of the former landowner. However, the change of landowner cannot be
allowed to raise the status of a mere caretaker or tiller sharer to that of
an agricultural tenant and leaseholder.

Security of land tenure the agricultural leasehold relation under this Code,
shall not be extinguished by mere expiration of the term or period in the
leasehold contract, in case the agricultural lessor sells, alienates of
transfers the legal possession of the landholding, the purchaser or
transferee thereof shall be subrogated to the rights and substituted to the
obligations of the agricultural lessor.
In order to possess the status of a de jure tenant, the following essential
requisites must concur, to wit:
1.
2.
3.
4.
5.
6.

the parties are the landowner and the tenant;

the subject is agricultural land;
there is consent;
the purpose is agricultural production;
there is personal cultivation;
there is sharing of harvests.

The absence of one does not make an occupant of a parcel of land or a

cultivator thereof, a de jure tenant, hence cannot invoke the defense of
security of tenure.

Causes for Extinguishment of Leasehold Relation

1. Abandonment of the landholding;
2. Voluntary surrender of the landholding;
3. Absence of successor or qualified heir, in case of death or
permanent incapacity of the lessee;
4. Judicial ejectment of the lessee;
5. Acquisition by the lessee of the landholding;
6. Termination of the leasehold under Sec. 28;
7. Mutual consent of the parties;
8. Conversion of the landholding for non-agricultural purposes.
Obligations of the Lessees
1. To cultivate and take care of the farm as a good father of a family
2. To inform the agricultural lessor any trespass committed by third
persons upon the farm;

3. To take reasonable care of the work animals and farm implements

delivered to him by the agricultural lessor, he shall be held
responsible and made answerable therefore to the extent of the
value of the work animals and / or farm implements at the time of
the loss, death or destruction;
4. To keep his farm and growing crops attended to during the work
season. In case of unjustified abandonment all of the expected
produce, any upon order of the court be forfeited in favor of the
agricultural lessor.
5. To notify the agricultural lessor at least three (3) days before the
date of harvesting;
6. To pay the lease rental to the agricultural lessor when it falls due.
Section 26, R.A. No. 3844, empowers the lessee to take direct action
against any trespasser to the landholding without waiting for the response
from the lessor.

2.
3.

4.

To propose a change in the use of the landholding to other

agricultural purposes. In case of disagreement, the same shall be
settled by the Court (Now Adjudication Board);
To acquire the agricultural lessee, to adopt in his proven farm
practices necessary to the conservation of the land, improvement
of its fertility and increase its productivity: That in case of
disagreement as to what proven farm practice the lessee shall
adopt, the same shall be settled by the court (now the DARAB);
To mortgage expected rentals.

Obligations of the Lessor

1. To keep the lessee in peaceful possession and cultivation of his
landholding;
2. To keep intact the permanent useful improvements existing on the
landholding.

Prohibitions to Agricultural Lessee

a. To contract to work additional lanholdings belonging to a different
agricultural lessor;
b. To acquire and personally cultivate a family-size farm without
knowledge and consent of the agricultural lesor;
c. To employ a sub-lessee.
Termination of Leasehold by the Lessee
1.
2.
3.
4.
5.

Cruel, inhuman or offensive treatment of the agricultural lessee by

the agricultural lessor;
Non-compliance on the part of the agricultural lessor with any of
the obligations imposed;
Compulsion of the agricultural lessee by the agricultural lessor to
do any work not in any way connected with farm work;
Commission of a crime by the agricultural lessor against the
agricultural lessee
Voluntary surrender due to circumstances more advantageous to
him and his family.

Rights of the Agricultural Lessor

1.

To inspect and observe the extent of compliance of their contract

and the provision of this Chapter;

The lessee may seek relief from the nearest Regional Agrarian Reform
Adjudicators (RARAD) or the Provincial Agrarian Reform Adjudicators
(PARAD) to compel the agricultural lessor to comply with this obligation in
case of refusal, neglect or resistance on the part of the lessor.
Prohibition to the Agricultural Lessor
1.
2.
3.
4.
5.

To dispossess the agricultural lessee of his landholding except

upon authorization by the court under Section 36.
To require the agricultural lessee to assume, the payment of the
taxes on the landholding;
To require the agricultural lessee to assume, any part of the rent,
to pay to third persons for the use of the land;
To deal with millers or processors without written authorization of
the lessee;
To discourage, the formation, maintenance or growth of unions or
organizations of agricultural lessees in his landholding.

Ground for Disposition of Agricultural Lessee

1. When the landholding is declared by the Department Head to be
suited for residential, commercial, industrial or some other urban
purposes;
2. Failure to comply with any of the of the terms and conditions of the
contract of lease;

3. Planting of crops or used the landholding for a purpose other than

what had been previously agreed upon;
4. Failure to adopt proven farm practices as determined under
paragraph 3 of Section twenty-nine;
5. When through fault or negligence of the lessee, the land or other
substantial permanent improvement thereon is substantially
damaged or destroyed or has reasonably deteriorated;
6. Failure to pay the lease rental when it falls due;
7. Employment of a sub-lessee.
The above causes are grounds for ejectment of an agricultural lessee only
after observance of due process.

Lessees Right of Redemption

In case the landholding is sold to a third person without the knowledge of
the agricultural lessee, the latter shall have the right to redeem the same
at a reasonable price and consideration: where there are two or more
agricultural lessees, each shall be entitled to said right of redemption only
to the extent of the area actually cultivated by him. The right of
redemption under this Section may be exercised within one hundred and
eighty days from notice in writing.
Upon the filing of the petition, the said period o one hundred and eighty
days shall cease to run.
Any petition shall be resolved within sixty days.

Lessees Right of Pre-emption and Redemption

In case the agricultural lessor decide to sell the landholding, the
agricultural lessee shall have the preferential right to buy the same under
reasonable terms and conditions: each shall be entitled to said preferential
right only to the extent of the area actually cultivated by him. The right of
pre-emption may be exercised within one hundred eighty (180) days from
notice in writing, which shall be served by the owner on all lessees
affected and the Department of Agrarian Reform.

The Department of Agrarian Reform shall initiate, while the Land Bank
shall finance, said redemption as in the case of pre-emption.
Right to Self-organization
The farmworkers shall have the right to self-organization and form, join or
assist farmworkers organizations of their own choosing for the purpose of
collective bargaining through representatives of their own choosing.
Bill of Rights for Agricultural Labor:

He must either tender payment of, or present a certificate from the Land
Bank that it shall make payment pursuant to Sec. 80 of this Code. If the
latter refuses to accept such tender or presentment, he may consign it with
the Court.
Any dispute as to reasonableness of the terms and conditions, may be
brought by the lessee or by the Department of Agrarian Reform to the
proper Court of Agrarian Relations.

1.
2.
3.
4.
5.

Right to self organization;

Right to engage in concerted activities.
Right to minimum wage;
Right to work for not more than eight hours;
Right to claim for damages for death or injuries sustained while at
work;
6. Right to compensation for personal injuries; death or illness;
7. Right against suspension or lay-off.

Comments:
Comments:
The right of pre-emption as distinguished from redemption, is the right to
purchase the property from the agricultural lessor by the lessees which is
exercised before it is sold to a third person other than the lessee.
The lessee may consign the purchase money with the Department of
Agrarian Reform.

The right to self organization includes the right to strike and hold picket
in order to compel the management in the case of large scale plantations
and multinational corporations to meet the demands of the farm workers
for wage increase and better working conditions.
Irrigation Facilities

Permanent irrigation system may be constructed at the expense of the

lessor:
1. Should the lessor refuse to bear the expenses, he should not be
entitled to the increase in rental and shall upon the termination of
the leasehold relationship pay the lessee or his their the
reasonable value of the improvements at the time of the
termination;
2. Should the lessor bear expenses he shall be entitled to an
increase in the rental proportionate to the resultant increase in
production.

Whatever balance remaining after crediting as amortization the rental paid,

the same may be finances by the Land Bank in the same ratio and mode
of payment provided under Section 80 of the Code.
Default on the Part of the Lessee: Should the lessee incur default in the
payment of at least three (3) installments on the loan, the lender shall
immediately notify the Land Bank and the DAR so that appropriate steps
shall be taken by these agencies:
a) to answer for the default in case the failure is due to fortuitous
event
b) to take over the ownership and administration of the landholding.

Management of Irrigation System

1.
2.

When constructed and operated by the government. Lessees

either as individuals or groups shall allocate not more than 25% of
their rental collection to the government.
Irrigation systems installed and / or constructed at expense of
landowner or agricultural lessor acquisition of these irrigation
system shall be initiated by the DAR to be financed by the Land
Bank.

Lease of Ricelands and Lands Devoted to Other Crops

1.

2.
3.

25% of the average normal harvest shall be the amount of rental

for ricelands or estimated normal harvest during the three (3)
agricultural years immediately preceding the establishment of the
leasehold after deducting the expenses for seeds, cost of
harvesting, threshing, loading, hauling and processing;
Average normal harvest for three (3) preceding years.
No agreement as to rental the court (now DAR) shall fix a
provisional rental until fixed rental is determined within (30) days
from submission of the case for decision.

Amortization Payment for Land under Leasehold:

The rentals paid by the lessee to the lessor at the place agreed upon by
the parties shall be credited as amortization payments for the purchase
price of the landholding titled by the leasee:
a) When the landholding is expropriated by the government;
b) When it is redeemed.

Where the case of the default is attributable to the lessee, the DAR shall
endeavor to substitute the defaulting amortization owner. In case the
default is due to fortuitous event, the Land Bank shall assume the
payment of the balance and the farmer shall be released from his
obligation.
Period of Prescription
An action to enforce any cause of action accruing under this Code (R.A.
No. 3844) shall be brought within the period of three (3) years.