RA 6657: Comprehensive Agrarian Reform Law of 1988
Sec. 26. PAYMENT BY BENEFICIARIES
Thirty (30) annual amortizations at 6% interest per
annum, subject to the following restrictions:
1. The first 5 annual payments may not be more
than 5% of the value of the annual gross
production as established by the DAR.
2. If the scheduled annual payments after the fifth
year exceed 10% of the annual gross production
and the failure to produce accordingly is not
due to the beneficiary’s fault, the LBP may:
a. Reduce the interest rate OR reduce the
principal obligation to make the
repayment affordable.
LBP’s PROTECTION IN THE MEANTIME IF FULL
PAYMENT IS NOT YET MADE:
1. The LBP shall have a lien by way of mortgage
on the land awarded to the beneficiary;
2. This mortgage may be foreclosed by the LBP
for nonpayment of an aggregate of 3 annual
amortizations.
o The LBP shall advise the DAR of such
proceedings and the latter shall
subsequently award the forfeited
landholding to other qualified
beneficiaries.
3. A beneficiary whose land has been foreclosed
shall be permanently disqualified from
becoming a beneficiary under this Act.
SEC. 27. TRANSFERABILITY OF AWARDED LANDS
General Rule: Lands acquired by the beneficiaries may
not be sold, transferred or conveyed.
Exceptions:
a. Through hereditary succession
b. To the government or the LBP
c. To other qualified beneficiaries for a period of
10 years.
 Provided that the children or the spouse of the
transferor shall have a right to repurchase the land
from the government or LBP within 2 years.
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PROTECTION TO THE OTHER HEIR OF THE BENEFICIARY
IF THE LAND HAS NOT BEEN DULY PAID BY HE
BENEFICIARY:
The rights to the land may be transferred or
conveyed, with prior approval of the DAR, to any heir of
the beneficiary or to any other beneficiary who SHALL
cultivate the land himself. Failing compliance herewith,
the land shall be transferred to the LBP which shall give
due notice of the availability of the land.
 ARE SQUATTERS QUALIFIED TO BECOME CARP
BENEFICIARIES?
ANS: NO. Squatters are disqualified from becoming
CARP beneficiaries because they are guilty of
forcible entry, or illegal detainer, which are
prohibited acts. They may not claim rights to
properties as landless peasants under the umbrella
of CARP.
 CAN A LANDOWNER CHOOSE HIS BENEFICIARIES?
ANS: A land owner has NO right to select his
beneficiaries. Land acquisition and land distribution
are 2 different transactions. It is the government
which buys the land from the land owner and then
sells it to the beneficiaries. It is not a direct
transaction between the landowner and the
beneficiaries. The beneficiaries must qualify under
the law, and it is still the MARO and the BARC who
do the screening.
SEC. 28 STANDING CROPS AT THE TIME OF
ACQUISITION.
The landowner shall retain his share of any standing
crops unharvested at the time the DAR shall take
possession of the land under Section 16 of this Act, and
shall be given a reasonable time to harvest the same.
SEC. 29 FARMS OWNED OR OPERATED BY
CORPORATIONS OR OTHER BUSINESS ASSOCIATIONS
GUIDELINES:
1. In general, lands shall be distributed directly to
the individual worker beneficiaries.
2. If it is not economically feasible and sound to
divide the land, it shall be owned collectively by

the workers beneficiaries, who shall form a
workers’ cooperative.
SEC. 30 HOMELOTS AND FARMLOTS FOR MEMBERS OF
COOPERATIVES
The individual members of the cooperatives or
corporations mentioned in the preceding section shall
be provided with homelots and small farm lots for their
family use, to be taken from the land owned by the
cooperative or corporation.
SEC. 31. CORPORATE LANDOWNERS
Two (2) options to corporations owning agricultural
lands:
1. They may voluntarily transfer ownership of
their landholdings to the Republic of the
Philippines; or
2. They may give their qualified beneficiaries the
right to repurchase such proportion of the
capital stock of the corporation that the
agricultural land actually devoted to agricultural
activities, bears in relation to the company’s
total assets under such terms and conditions as
may be agreed upon by them.
RESTRICTIONS IF OPTION 2 IS CHOSEN:
a. The books of the corporation or association
shall be subject to periodic credit by
certified accountants chosen by the
beneficiaries;
b. The beneficiaries shall have one (1)
representative in the Board of Directors;
c. The beneficiaries shall have the same rights
as other shareholders;
d. Transfer of shares of stock of the original
beneficiaries shall be void ab initio unless
said transaction is in form of a qualified
beneficiary.
 WHAT IS THE CONSEQUENCE IF THE STOCK
DISTRIBUTION IS NOT MADE OR REALIZED?
ANS: The agricultural land of the corporate owners
or corporation shall be subject of compulsory
coverage of RA 6657.
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RA 6657: Comprehensive Agrarian Reform Law of 1988
SEC. 32. PRODUCTION SHARING
REQUIREMENTS BEFORE FINAL LAND TRANSFER
Person owning or operating by virtue of a lease or
management contract shall execute a production
sharing plan with their farmworkers or farmworkers’
organization, if any.
What should be contained in the production sharing
plan?
3% of the gross sales from production of such lands are
distributed within sixty (60) days of the end of the fiscal
year as compensation to regular and other farmworkers
in such lands over and above their current
compensation.
 This rule, however, is not absolute and applies only
for those whose gross sales exceed P5M per annum,
unless the DAR, upon proper application,
determines low ceiling.
Can the 3% subject of distribution be increased?
Yes. If the individual or entity realizes a profit, AN
ADDITIONAL 1% OF THE NET PROFIT AFTER TAX shall be
distributed to said regular and farmworkers within 90
days of the end of the fiscal year.
PENDING TURN-OVER TO THE FARMWORKER-
BENEFICIARIES, DAR MAY DETERMINE A TRANSITORY
PERIOD.
What happens during the transitory period?
At least 1% of the gross sales of the entity shall
be distributed to the managerial supervisory and
technical group in place at the time of the effectivity of
RA 6657.
What will be the use of 1%?
It shall serve as compensation to transitory
managerial and technical functions being performed or
to be performed by said group.
SEC. 33. PAYMENT OF SHARES OF COOPERATIVE OR
ASSOCIATION
Shares of a cooperative or association acquired by
farmers-beneficiaries or workers-beneficiaries shall

be fully paid for in an amount corresponding to the
valuation as determined in the immediately
succeeding section. The landowner and the LBP
shall assist the farmers-beneficiaries and workers-
beneficiaries in the payment for said shares by
providing credit financing.
SEC. 34. VALUATION OF LANDS
A valuation scheme for the land shall be formulated by
the PARC, taking into account the factors enumerated in
Section 17, in addition to the need to stimulate the
growth of cooperatives and the objective of fostering
responsible participation of the workers-beneficiaries in
the creation of wealth.
In the determination of price that is just not only to the
individuals but to society as well, the PARC shall consult
closely with the landowner and the workers-
beneficiaries.
In case of disagreement, the price as determined by the
PARC, if accepted by the workers-beneficiaries, shall be
followed, without prejudice to the landowner's right to
petition the Special Agrarian Court to resolve the issue
of valuation.
SEC. 35. CREATION OF SUPPORT SERVICES
 Office of Support Services under the Dar is hereby
created under the DAR to be headed by an
Undersecretary. The Office shall provide general
support in carrying out the provisions of the
following services to farmer-beneficiaries and
affected landowners:
a. Irrigation facilities
b. Infrastructure development
c. Government subsidies
d. Price support
e. Credit
f. Financial assistance
g. Agricultural extension workers
h. Research
i. Development of cooperative management
skills
j. Assistance in marketing
k. Administration of support services
SEC. 36. FUNDINGS FOR SUPPORT SERVICES
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RA 6657: Comprehensive Agrarian Reform Law of 1988
FUNDING SET ASIDE FOR SUPPORT SERVICES
1. 25% of all appropriations for agrarian reform
shall be immediately set aside and made
available for this purpose
2. Any other financial assistance from any source.
SEC. 37 SUPPORT SERVICES TO THE BENEFICIARIES
The PARC shall:
1. Ensure that support services to farmer
beneficiaries are provided, such as:
a. Land surveys and titling
b. Liberalized credit facilities
c. Extension services
d. Infrastructure specified in Section 37(d)
2. Formulate policies to ensure that support
services to farmer-beneficiaries shall be
provided at all stages of land reform.
SANCTIONS FOR MISUSE OR DIVERSION OF
FINANCIAL AND SUPPORT SERVICES:
It shall result in sanctions against the guilty
beneficiary, including the forfeiture of the land
transferred to him or lesser sanctions as may be
provided by the PARC, without prejudice to criminal
prosecution.
SEC. 38. SUPPORT SERVICES TO LANDOWNERS
The PARC shall provide landowners affected by
CARP and prior agrarian reform program with the
following services:
a. Investment information
b. Facilities, programs and scheme for the
conversion or exchange of bonds
c. Marketing of LBP bonds
d. Other services designed to utilize
productivity the proceeds of the sale of such
lands for rural industrialization.
OTHER INCENTIVES/BENEFITS TO LANDOWNERS:
a. INCENTIVE – If a landowner invests in rural-
based industries, he shall be entitled to the
incentives granted to a registered enterprise

engaged in a pioneer or preferred area of
investment as provided in the Omnibus
Investment Code of 1987.
b. BENEFIT – The LBP shall redeem a landowner’s
LBP bonds at face value, provided that the
proceeds thereof shall be invested in a BOI-
registered company or in any agri-business or
agro-industrial enterprise, to the extent of 30%
of the face value of the sad LBP bonds.
SEC. 39 LAND CONSOLIDATION
PURPOSES OF LAND CONSOLIDATION:
1. To promote equal distribution of landholdings
2. To provide the needed infrastructures in
agriculture
3. To conserve soil fertility and prevent erosion.
SEC. 40 SPECIAL AREAS OF CONCERN
SPECIAL AREAS OF CONCERN THAT ARE
CONSIDERED AS INTEGRAL PART OF CARP:
a. Subsistence fishing – they shall be assured
greater access to the utilization of water
resources.
b. Logging and mining concessions – suitable
areas in logging, mining and pasture areas
shall be required to undertake reforestation
and conservation production methods.
- Tribal communities shall be allowed to
enjoy and exploit the products of the forest
other than timber within the logging
concessions.
c. Sparsely occupied public agricultural lands –
They shall be surveyed, proclaimed and
developed as farm settlements for qualified
landless people.
- Agricultural land allocation shall be made
of=r ideal family size farms.
- Uncultivated lands of the public domain
shall be made available on a lease basis to
interested and qualified parties.
- Parties who will engage in the development
of capital-intensive, traditional or primary
crops shall be given priority.
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RA 6657: Comprehensive Agrarian Reform Law of 1988
- The lease period which shall not be more
than a total of 50yrs shall be proportionate
to the amount of investment and
production goals of the lessee.
d. Idle, abandoned, foreclosed sequestered
lands – they shall be planned for distribution
as homelots and family-size farmlots to
actual occupants.
- If land area permits, other landless families
shall be accommodated in these lands.
e. Rural women – They shall have equal rights
to ownership of the land, equal share so the
farm’s produce and representation in
advisory or appropriate decision-making
bodies.
f. Veterans and retirees – If landless, they shall
be given due consideration in the disposition
of agricultural lands of the public domain.
g. Agricultural graduates – If landless, they
shall be assisted by the government, thru
DAR, in their desire to own and till
agricultural lands.
SECS. 41-43 – provide for the composition and structure
of the PARC.
SEC 41 (PARC)
1. Composition: President as Chairman; Secretary
of Agrarian Reform as Vice-Chairman.
2. Members: Secretaries of the following
Departments:
a. DA
b. DENR
c. Budget and Management
d. DILG
e. DPQH
f. Trade and Industry
g. Finance
h. DOLE
i. Director of NEDA
j. President of Land Bank of the
Philippines
k. Representatives of affected landless
landowners in Luzon, Visayas and
Mindanao

l. Representatives of Agrarian Reform
Beneficiaries, 2 each from Luzon,
Visayas and Mindanao. Provided that
one of them shall be from the cultural
communities.
SEC 42 – EXECUTIVE COMMITTEE
Composition – Secretary of DAR as chairman,
other members which the President may
designate.
SEC. 44. PROVINCIAL AGRARIAN REFORM
COORDINATING COMMITTEE (PARCCOM)
Composition:
1. FUNCTION – it shall coordinate and monitor
CARP’s implementation in the province. It shall
provide information on the provisions of CARP
in the provinces.
2. Composition – appointed by the President upon
recommendation of the EXCOM.
3. PARO (Provincial Agrarian Reform Officer – as
Executive Officer)
4. One (1) representative each from
a. DA
b. DENR
c. LBP
5. One (1) representative each from the existing
farmers organizations, agricultural cooperatives
and NGO’s in the province.
6. Two (2) Representatives from landowners
7. Two (2) representatives from farmer and
farmer-beneficiaries.
8. One (1) representative from cultural
communities, if existing in the area.
SEC. 45. PROVINCE-BY-PROVINCE IMPLEMENTATION
PURPOSE – To ensure that support services are
available for have been programmed before actual
distribution is affected.
CONTINUING TASK OF PARC AND PARCCOM:
1. Coordinate and monitor CARP’s implementation
2. Provide information on the provisions of CARP’s
guidelines issued by the PARC
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RA 6657: Comprehensive Agrarian Reform Law of 1988
 The 10-year program of distribution of public and
private lands in each province shall be adjusted
from year to year by the province’s PARCCOM.
SEC. 46. FUNCTIONS OF THE BARC
a. Mediate and conciliate between parties
involved in an agrarian dispute including
matters related to tenurial and financial
arrangements;
b. Assist in the identification of qualified
beneficiaries and landowners within the
barangay;
c. Attest to the accuracy of the initial
parcellary mapping of the beneficiary
tillage;
d. Assist qualified beneficiaries in obtaining
credit from lending institutions;
e. Assis in the initial determination of the
value of the land;
f. Assis the DAR Representatives in the
preparation of periodic reports in the CARP
implementation for submission to the DAR;
g. Coordinate the delivery of support services
to the beneficiaries;
h. Perform such other functions as may be
assigned by the DAR
SEC. 48 Legal Assistance. — The BARC or any member
thereof may, whenever necessary in the exercise of any
of its functions hereunder, seek the legal assistance of
the DAR and the provincial, city, or municipal
government.
SEC 49. Rules and Regulations. — The PARC and the
DAR shall have the power to issue rules and regulations,
whether substantive or procedural, to carry out the
objects and purposes of this Act. Said rules shall take
effect ten (10) days after publication in two (2) national
newspapers of general circulation.
SEC. 50. QUASI-JUDICIAL POWERS OF THE DAR
A. PRIMARY JURISDICTION – to determine and
adjudicate agrarian reform matters.
B. EXCLUSIVE ORIGINAL JURISDICTION – over all
matters involving the implementation of agrarian

reform except those falling under the exclusive
jurisdiction of the DA and DENR.
C. Other powers:
- to summon witnesses
- administer oaths
- require submission of reports
- compel the production of books and
documents and answer interrogation
- issue subpoenas and subpoena duces
tecum
- enforce its writs thru sheriffs or other duly
deputized officers.
- To promote direct and indirect contempts
in the summons as provided in the Rules of
Court.
SHOULD THE LITIGANTS BE REPRESENTED BY A
LAWYER?
The law is silent. It merely provides that
responsible farmer-leaders shall be allowed to
represent themselves, their fellow farmers or their
organizations.
SEC. 51.FINALITY OF DETERMINATION
A case shall be decided within 30 days after it is
submitted for resolution.
Only one (1) motion for resolution is allowed.
An order, ruling or decision becomes final after the
lapse of fifteen (15) days from receipt of a copy
thereof.
SEC. 52. FRIVOLUES APPEALS
The DAR may impose reasonable penalties including
but not limited to fines or censures upon erring
parties.
CAN THE DAR IMMEDIATELY TAKE COGNIZANCE OF AN
AGRARIAN DISPUTE OR CONTROVERSY?
It shall not take cognizance of an agrarian dispute or
controversy unless there is a certification from the BARC
that the dispute has been submitted to it without any
success of settlement.
SECS. 54-57
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RA 6657: Comprehensive Agrarian Reform Law of 1988
CAN A DECISION, ORDER, AWARD OR RULING OF DAR
BE SUBJECT OF JUDICIAL REVIEW? YES, accdg. to Art.
54.
HOW CAN THE SUPREME COURT COPE WITH THE
NUMBER OF AGRARIAN CASES IN EACH PROVINCE?
1. The SC shall designate at least one (1) branch of
RTC within each province to act as Special
Agrarian Court.
2. The SC may designate more branches to
constitute such additional Special Agrarian
Courts.
WHAT IS THE ORIGINAL AND EXCLUSIVE JURISDICTION
OF SPECIAL AGRARIAN COURTS?
They shall have original and exclusive jurisdiction:
1. Over all petitions from the determination of just
compensation to landowners.
2. The prosecution of all criminal offenses under
CARL.
SECS. 61-63
SOURCE OF FUNDS NEEDED TO IMPLEMENT THIS ACT:
1. It shall be funded from the Agrarian Reform
Fund created under Sections 20 and 2 of EO
229.
2. Additional amounts are hereby authorized to be
appropriated as and when needed to agument
the Agrarian Reform Fund in order to fully
implement the provisions of this Act.
SOURCES OF FUNDING ON APPROPRIATION SHALL
INCLUDE THE FOLLOWING:
a. Proceeds of the sales of the Assets Privatization
Trust;
b. All receipts from asses covered thru the PCGG;
c. Proceeds of the disposition of the properties of
the Government in foreign countries;
d. Other government funds not otherwise
appropriated
SEC.64 Financial Intermediary for the CARP. — The
Land Bank of the Philippines shall be the financial
intermediary for the CARP, and shall insure that the
 RA 6657: Comprehensive Agrarian Reform Law of 1988

social justice objectives of the CARP shall enjoy a Municipalities to reclassify lands into non-
preference among its priorities. agricultural lands.

SEC. 65. CONVERSION OF FUNDS What lands are not affected by the 15%, 10% or 5%
requirement as above-mentioned?
IS THE RECLASSIFICATION OR CONVERSION OF AN
AGRICULTURAL LAND INTO RESIDENTIAL, Agricultural lands distributed to agrarian reform
COMMERCIAL OR INDUSTRIAL PURPOSES ALLOWED BY beneficiaries.
RA 6657?
Is the said percentage ceiling absolute?
YES, by express provision of Sec 65. Provided,
No, the President may, when public interest so
however, that the beneficiary shall have fully paid his
requires and upon recommendation of the National
obligation.
Economic and Development Authority (NEDA)
RECLASSIFICATION vs. CONVERSION authorize a city or municipality to reclassify lands in
excess of the limits cited above.
RECLASSIFICATION CONVERSION
It is the act of specifying It is the act of changing  The DAR has the exclusive power to approve or
how agricultural lands the current use of a piece disapprove land use conversion applications. It is
shall be utilized for non- or agricultural land into different form the power of the LGUs to reclassify
agricultural uses, such as some other use. agricultural land under Sec 20 of the LGC.
residential, industrial,
and commercial as RESPONSIBILITY OF DAR IN CASE OF
embodied in the land use RECLASSIFICATION:
plan, subject to the
requirements and a. DAR should see to it that the land sought to be
procedures for reclassified are not distributed or not covered
conversion. by a notice of coverage or not voluntarily
offered for coverage under CARP. The
It also includes the certification must be secured by the Sanggunian
reversion of non- concerned prior to the enactment of an
agricultural lands to ordinance reclassifying the agricultural land.
agricultural uses. b. DAR’s conversion clearance shall still be
required prior to actual change of the use of the
land.
REQUIREMENT FOR RECLASSIFICATION REQUIREMENT PRIOR TO THE ACTUAL USE OF
1. There should be a public hearing LAND:
2. It should be limited to the following percentage After the reclassification by the LGU, a DAR
of the total agricultural land area at the time of conversion clearance shall be required prior to
the passage of the ordinance, thus: actual change of the use of the land. (OP Memo
a. 15% for highly urbanized and independent Circular No. 54 [1993])
cities;
b. 10% for component cities and third class WHO REALLY HAS THE AUTHORITY TO CONVERT
municipalities; AGRICULTURAL LANDS? LGUs OR DAR? DAR.
c. 5% for four to six municipalities.
3. LGUs are mandated to exercise authority in
accordance with MC 54 of the Office of the
President which authorizes the Cities and
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 RA 6657: Comprehensive Agrarian Reform Law of 1988

IS THE AUTHORITY OF THE DAR TO ALLOW

CONVERSION LIMITED ONLY TO LANDS AWARDED
UNDER CARP?

NO. Since the DAR has exclusive original jurisdiction

over all matters involving the implementation of
CARP, it is believed to be the intention of the
Agrarian Reform law that any conversion of a
private agricultural land to non-agricultural uses
should be cleared beforehand by the DAR.

DAR OFFICIALS AUTHORIZED TO ISSUE

CONVERSION ORDERS (under sec 22 of AO 1
[1999]):

a. The Regional Director for areas of not more

than 5 hectares;
b. The duly authorized Undersecretary for
areas 5-50 hectares;
c. The Secretary for areas more than 50
hectares, except for those highly restricted
from conversion which shall be used subject
to his approval regardless of the area.

ARE AGRICULTURAL LANDS EXPROPRIATED BY THE

LGUs SUBJECT TO DAR CONVERSION CLEARANCE
PRIOR TO CHANGE IN USE?

NO. To hold otherwise would mean that the LGUs can

no longer expropriate agricultural lands needed for the
construction of roads, bridges, schools, hospitals, etc.
without first applying for conversion of the use of the
lands with the DAR, because all of these projects would
naturally involve a change in the land use. In effect, it
would be then the DAR to scrutinize whether the
expropriation is for a public purpose or public use.