Reviewer: Agrarian Law (Part 1)

AGRARIAN LAW RA 6657

WHAT IS AGRARIAN REFORM? Sec. 3, RA 6657

Redistribution of lands
Regardless of crops or fruits produced,
To farmers and regular farmworkers
Irrespective of tenurial arrangements,
Including a totality of factors and support services
Designed to lift the economic status of the beneficiaries,
And all other arrangements alternative to physical redistribution of lands,
Such as production, profit-sharing, labor administration and the distribution of shares of
stocks,
Which will allow beneficiaries to receive
A just share of the fruits of the land they work.

WHAT IS LAND REFORM?

Under PD 27, land distribution restricting the scope of land reform to tenanted private
agricultural lands primarily devoted to rice and corn lands operating under a system of
share-crop or lease tenancy whether classified as landed estate or not. and set the retention
limit at 7 hectares.

COVERAGE OF RA 6657 VS. PD 27

ALL agricultural lands vs. Private agricultural lands (primarily devoted to rice and corn)
Retention limits: 5 hectares vs. 7 hectares

WHAT ARE AGRICULTURAL LANDS?

All lands devoted to agricultural activity, and are not classified as mineral, forest,
residential, commercial or industrial land.

WHAT ARE AGRARIAN DISPUTES?

Any controversy relating to tenurial arrangements (leasehold, tenancy, stewardship, or
otherwise) over lands devoted to agriculture,
Including disputes concerning farmworkers, associations or representation of persons in
Negotiating, fixing, maintaining, changing or seeking to arrange the terms and conditions of
such tenurial arrangements.

AO NO. 1 – NOTICE OF COVERAGE

Is Notice of Coverage mandatory?

NO. Only issued when there is landowner resistance, during acquisition of private agricultural
lands. (invoking the ground of lack of notice or non-observance of due process)
- MARO (as to execution)

AO NO. 2 – RETENTION RIGHTS

MAY THE LANDOWNER CHOOSE THE AREA TO BE RETAINED?

 YES. The landowner may choose the area to be retained, provided it is compact and
contiguous, and shall be the least prejudicial to the entire landholdings and the majority of
farmers therein.

WHEN CAN HE EXERCISE HIS RIGHT TO RETAIN?

a. Anytime before receipt of the notice of coverage
b. Anytime before the landholding is subject to schedule of implementation under CARP
coverage;
c. If under the CA scheme, within 60 days from the receipt of notice of coverage;
d. If under the VOS/VLT or DPS schemes, simultaneous with the offer to sell or transfer.

WHAT ACTS/OMMISIONS CONSTITUTES THE WAIVER OF THE EXERCISE OF

RETENTION?

Under omission,
a. Failure to manifest his intent within 60 calendar days from receipt of notice of coverage;
b. Failure to manifest such intent to exercise his right of retention simultaneously upon
application of the VLT/DPS schemes.

VLT – if tenant chooses to be a beneficiary of another landholding of the same owner with the
same or similar comparable features.

Under acts,
c. Execution of document expressly waiving the right of retention duly attested by
MARO/PARO or Regional Director;
d. Execution of a Landowner Tenant Production Agreement and Farmer’s Undertaking (LTPA-
FU) and Application to Purchase and Farmer’s undertaking (APFU) covering the subject
property.
e. Entering into a VLT/DPS or VOS but failure to manifest the intention to exercise his right
retain such area upon filing of such applications.
f. Execution and submission of any document indicating that he is consenting to the CARP
coverage of his entire landholding.
g. Performing any act constituting estoppel by laches which is failure or neglect for an
unreasonable length of time to do which he may have done earlier by exercising due diligence,
warranting a presumption that he abandoned his right or decline to assert it.

WHO MAY FILE FOR A CERTIFICATE OF RETENTION? (3)

a. Any person, natural or juridical, who owns an agricultural land with an aggregate of more
than 5 hectares;
b. A landowner who owns 5 hectares or less, which are not yet subject to the schedule of
implementation of CARP;
c. The heirs of a deceased landowner, upon showing of proof that the landowner had manifested
during his lifetime to exercise his right of retention over the landholding prior to 8/23/1990.

WHERE TO FILE?
At any PARO/ office of the Regional Director, which applications shall be forwarded to the
MARO who has jurisdiction over the landholding after assigning a docket number.
 WHAT ARE THE OBLIGATIONS OF THE LANDOWNER OVER THE RETAINED LANDS?
(5)
a. To cultivate the land directly or thru labor administration
b. To make it productive
c. To respect the security of tenure of the farmers or farmworkers on the land prior to the
approval of RA 6657
d. To retain the actual tenant farmers in the landholdings
e. To register within 3 months after 6/15/1988 all transactions such as sale,disposition,lease or
transfer with the RD to be valid.

WHAT ARE THE CRITERIA FOR THE AWARDS OF RETENTION? (5)

a. The land is a private agricultural land

b. The area is compact and contiguous, and the least prejudicial to the entire landholding and
the majority of farmers therein
c. Landowner to execute an affidavit as to the aggregate area of his landholding in the entire
Philippines
d. Landowner to submit a list of his children which are at least 15 y.o. and above, who are
actually cultivating the land or directly managing the farm since 6/15/1988 for identification
of the preferred beneficiaries, as well as evidence thereof.
e. Landowner to execute an affidavit stating the names of all farmers, agricultural lessees and
share tenants, regular farmworkers, seasonal farmworkers, other farmworkers, actual tillers
or occupants, and/or other persons directly working on the land; if there are no such persons,
a sworn statement attesting to such fact.

WHO ARE THE BENEFICIARIES?

According to priority (ARSOACO)
Agricultural lessees and share tenants
Regular farmworkers
Seasonal farmworkers
Other farmworkers
Actual tillers and occupants
Cooperatives, xxx
Other persons directly working on the land

WHAT IS THE AREA THAT MAYBE RETAINED?

a) LO covered by PD 27 – 7 hectares (subject to exceptions)

b) LO covered by PD 6657 – 5 hectares
c) If with children (at least 15 y.o. who are actually cultivating or directly managing the farm) –
3 hec. each
- Up to the filing of the retention
- Up to the time of acquisition of the landholding under the CARP
d) Original homestead grantees/ direct compulsory heirs who still own the original homestead
at the time of approval of PD 6657 – to retain the same area so long as they continue to
cultivate the same.
e) Spouses who married under the NCC (1950)
- If conjugal property (w/o judicial separation of property agreements) – 5 hectares (total)
- If each or both has (capital and/or paraphernal property) – 5 hectares each but exceeding 10
hectares
f) Spouses who married under FC (8/3/1988)
- If without judicial separation of property agreements – 5 hectares only
- If with judicial separation of property agreements – 5 hectares each

WHAT ARE THE OPTIONS OF THE TENANT IN CASE HE OCCUPIES THE LAND
RETAINED?
- To be a lessee
- Or to be a beneficiary of the same or another agricultural land with similar or comparable
features
(choosing 1 shall lose the other)= alternative condition?

WHEN IS DISTURBANCE COMPENSATION (DC) PAID by the landowner TO THE

TENANT?
a. If tenant declined to enter into a leasehold
b. No available land to transfer
c. Tenant refuses the land for his transfer

HOW MUCH IS THE DISTURBANCE COMPENSATION?

Depends on the agreement of the parties, taking into consideration the improvements made
on the land.
The amount shall be at least 5x the average gross harvest on their landholding during the last
5 years preceding the calendar years pursuant to RA 3844 as amended by RA 6389.

IN WHAT FORMS MAY THE DC BE PAID?

(AO NO. 4)
- Cash or
- Kind (some or all mixtures of housing, homelots, employment and/or other benefits) or
- Combination of cash and kind

MAY THE TENANT BE EJECTED FROM THE LANDHOLDING IF NO DC WERE AGREED

UPON?
NO. Any tenant may not be ejected without payment of a DC, and proof of payment submitted
to MARO. In case of disagreement, either party may file a petition for fixing a DC to the
appropriate PARAD.

WHEN SHOULD THE TENANT EXERCISE HIS OPTIONS?

Within 1 year, from:
a. The time the LO manifests his choice of area of retention; or
b. MARO chose the area; OR
c. The time an order is issued granting the retention.

WHO MAY HANDLE DC FIXING DISPUTES?

a. PARAD
b. RARAD
c. DARAB

FILING FOR EXEMPTION FROM CARP COVERAGE

 WHEN SHOULD THE APPLICATION ON EXEMPTION BE FILED?
Within 60 days from receipt of notice of coverage, if applicable.

WHAT ARE THE REQUIREMENTS FOR FILING OF EXEMPTION CLEARANCE?

a. SPA if applicant is not the registered owner nor one of the co-owners of the property
b. Notarized Sec. Cert. of the corp. or cooperative, authorizing the applicant’s representative to
file the Sworn Application for CARP Exemption + latest notarized GIS
c. True copy of the original COT or TCT of the subject land, certified by the RD not earlier than
30 days prior to the application filing date.
In case of untitled land,
a. Certification from DENC Cenro – classified as A&D
b. Certification from DENC Centro – for admin. Confirmation of title or Clerk of Court (for
judicial confirmation of title) that the titling process has commenced and there are no adverse
claimants;
c. Land Classification certification either from HLURB, DENR Mines and Geosciences Bureau,
LGU, NIA, as the case may be.
d. Certification from MARO re public notice requirement compliance
e. Photographs of the subject land
f. Proof of receipt of payment of DC, or valid agreement to pay or waive payment of the same
g. Affidavit/Undertaking in a single document stating:
- The number and names of qualified beneficiaries, or
- The applicant has erected a billboard required
- That he has not committed any forum shopping
- That when there is a dispute on the DC, the applicant shall abide with the decision of the
adjudicating authority

WHO ARE THE APPROVING AUTHORITIES FOR EXEMPTION?

Regional Director (RCLUPPI recommendation) – for properties with area less or equal to 5
hectares

Secretary (CLUPPI-2 recommendation) – for properties with area larger than 5 hectares

MAY A CONDITIONAL EXEMPTION ORDER BE GRANTED?

YES, subject to the applicant’s/landowner’s posting of bond, as determined by the
Adjudicator.
Provided, the property applied for exemption shall not be developed for non-agricultural
purposes until the finality of the exemption order.

MAY A PROTEST OF EXEMPTION BE FILED?

YES, any person may file a written protest against the application within 30 days from posting
of the requisite billboard or within 15 days from conduct of ocular inspection, whichever is
later.

WHERE SHOULD PROTEST BE FILED?

Office of PARO or CLUPPI-2 as the case may be, having jurisdiction over the property.

WHAT ARE THE GROUNDS FOR PROTEST?

a. Landholding is classified as within the agricultural zone based on the zoning ordinance or
comprehensive land use plan of the LGU approved by HLURB
b. Subject property has been covered by Operation Land Transfer under PD 27.

WHAT IS AGRICULTURAL LEASEHOLD CONTRACT? (PD 3844 – Land Reform Code)

A formal tenurial agreement reduced into writing between a lessor-landholder and lessee-
farmer where the former consents to the latter’s personal cultivation in consideration from a
fixed rental either in money or produce or both.

WHO IS AN AGRICULTURAL LESSEE?

One 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 latter’s consent, for
purposes of production, for a price certain in money or in produce or both.

WHEN IS THERE AN AGRICULTURAL LEASEHOLD RELATION?

By operation of law

WHO MAYBE CONSIDERED AS THE LESSOR?

The person who furnishes the landholding, either as an owner, civil law lessee, usufructuary
or legal possessor

WHAT IS THE EFFECT OF AN AGRICULTURAL LEASEHOLD CONTRACT?

Provides security of tenure to a leasehold lessee on his landholding and cannot be ejected
therefrom unless authorized by Court for causes provided under RA 3844.

WHEN MAY THE LEASEHOLD CONTRACT BE EXTINGUISHED?

A. Abandonment of the landholding without knowledge of the ALessor
B. Voluntary surrender of the landholding by the Alessee, written notice at least 3 months in
advance
C. Absence of persons to succeed to the lessee, in case of death or permanent incapacity

WHAT IS THE RIGHT OF PRE-EMPTION?

In case the ALessor decides to sell the landholding, the ALessee shall have the preferential
right to buy the same under reasonable terms and conditions, provided that:
- The entire landholding must be pre-empted by the Land Authority if the landowner so
desires;
- When there are 2 or more ALessees