Luz Farms v.

Secretary of DAR

G.R. No. 86889 December 4, 1990

Facts:

On 10 June 1988, RA 6657 was approved by the President of the Philippines, which includes, among
others, the raising of livestock, poultry and swine in its coverage.

Petitioner Luz Farms, a corporation engaged in the livestock and poultry business, avers that it would be
adversely affected by the enforcement of sections 3(b), 11, 13, 16 (d), 17 and 32 of the said law. Hence,
it prayed that the said law be declared unconstitutional. The mentioned sections of the law provies,
among others, the product-sharing plan, including those engaged in livestock and poultry business.

Luz Farms further argued that livestock or poultry raising is not similar with crop or tree farming. That
the land is not the primary resource in this undertaking and represents no more than 5% of the total
investments of commercial livestock and poultry raisers. That the land is incidental but not the principal
factor or consideration in their industry. Hence, it argued that it should not be included in the coverage
of RA 6657 which covers “agricultural lands”.

Issue: Whether or not certain provisions of RA 6657 is unconstitutional for including in its definition of
“Agriculture” the livestock and poultyr industry?

Ruling:

The Court held YES.

Looking into the transcript of the Constitutional Commission on the meaning of the word “agriculture”,
it showed that the framers never intended to include livestock and poultry industry in the coverage of
the constitutionally mandated agrarian reform program of the government.

Further, Commissioner Tadeo pointed out that the reasin why they used the term “farmworkers” rather
than “agricultural workers” in the said law is because “agricultural workers” includes the livestock and
poultry industry, hence, since they do not intend to include the latter, they used “farmworkers” to have
distinction.
Hence, there is merit on the petitioner’s argument that the product-sharing plan applied to “corporate
farms” in the contested provisions is unreasonable for being consficatory and violative of the due
process of aw.