101 Agrarian Reform Basics
101 Agrarian Reform Basics
101 Agrarian Reform Basics
invalid a provision in the old CARP law subjecting lands a. parks, wildlife, forest reserves, reforestation, fish
devoted for “livestock,
livestock, poultry and swine raising, and sanctuaries and breeding grounds, watersheds and
aquaculture” to agrarian reform mangroves
b. prawn farms and fishponds, subject to certain
“[D]eliberations of the 1987 Constitutional requirements
Commission show a clear intent to exclude, inter c. lands necessary for national defense
alia, all lands exclusively devoted to livestock, swine d. school sites and campuses
and poultry-raising. The Court clarified in the Luz e. church sites
Farms case that livestock, swine and poultry-raising f. burial grounds
are industrial activities and do not fall within the g. penal colonies
definition of ‘agriculture’ or ‘agricultural activity.’” h. research and quarantine centers
i. lands with scope of 18% and above, except those
already developed
CARPER 101
But for the SDO to be valid, it must comply with the ff:
books of the corporation shall be subject to periodic
LAND ACQUISITION audit by certified accountants chosen by the
beneficiaries
#1: how is the distribution of lands done? irrespective of the value of their equity in the
corporation, the beneficiaries shall be entitled to one
In a nutshell: representative in the board
government identifies which lands are covered any share acquired by such workers and
buys ‘carp-able’ land from the landowners [land land beneficiaries shall have the same rights and features
acquisition,
acquisition, payment of just compensation]
compensation as all other shares
distributes the acquired land to qualified any transfer of shares of stock by the original
beneficiaries; subject to the condition that the latter beneficiaries shall be void ab initio unless in favor of
shall pay the awarded land [land
land redistribution]
redistribution a qualified and registered beneficiary
Take note of the ff constitutional requirement: Furthermore, the stock transfer should be realized or the plan
the program should be founded on the right of of such stock distribution approved within 2 years from the
farmers and regular farm workers,
workers, who are landless,
landless approval of the CARP [nor CARPER]
to own directly or collectively the lands they till, or
in the case of other farm workers,
workers to receive a just #5:
#5: but isn’t this contrary to constitutional requirement
share of the fruits thereof [sec. 4, art. XII] that the program should be founded on right of the
farmers to own directly or collectively the lands they till?
#2: land acquisition
This was squarely raised in the case of Hacienda Luisita, Inc.
There are only two modes of land acquisition under the CARP, [HLI] v. PARC. The Supreme Court, however, refused to give
as amended: an answer due to the parties’ failure to meet the requirements
compulsory acquisition [RA 6657, sec. 16]; and of judicial review.
voluntary offer to sell2 [RA 6657, sec. 19]
“It has been emphasized in a number of cases that
Voluntary Land Transfer, as a mode of transfer, was removed the question of constitutionality will not be passed
by the CARPER. upon by the Court unless it is properly raised and
presented in an appropriate case at the first
RA 6657, as amended, sec. 7: Voluntary land transfer shall be opportunity. FARM is, therefore, remiss in belatedly
allowed only for land holdings with VLT applications submitted questioning the constitutionality of Sec. 31 of RA
to the DAR as of June 30, 2009. 6657. The second requirement that the
constitutional question should be raised at the
#3: land acquisition variations earliest possible opportunity is clearly wanting.”
“The lis mota in this case, proceeding from the basic
Agrarian reform includes positions originally taken by AMBALA (to which the
all other arrangements alternative to the physical FARM members previously belonged) and the
redistribution of lands, such as production or profit- Supervisory Group, is the alleged non-compliance by
sharing, labor administration, and the distribution of HLI with the conditions of the SDP to support a plea
shares of stocks, which will allow beneficiaries to for its revocation.”
receive a just share of the fruits of the lands they
work. [RA 6657, sec. 3a] The Supreme Court nevertheless made a pronouncement as to
the validity of the said provision:
Thus, we have the SDO under RA 6657, sec. 31. Note,
however, that the stock transfer should be realized or the plan “There appears to be no breach of the fundamental
of such stock distribution approved within 2 years from the law. “
approval of the CARP [nor CARPER], otherwise the lands of the “The wording of the provision is unequivocal––the
corporation shall be subject to CA. farmers and regular farm workers have a right TO
OWN DIRECTLY OR COLLECTIVELY THE LANDS
#4: SDO under sec. 31 THEY TILL. The basic law allows two (2) modes of
land distribution—direct and indirect ownership.”
In lieu of ‘compulsory acquisition’ or ‘vos’ the law grants “Likewise, Sec. 4, Art. XIII of the Constitution makes
corporate land owners the option to grant qualified mention of a commitment on the part of the State to
beneficiaries “the right to purchase such proportion of the pursue, by law,
law an agrarian reform program founded
capital stock that the agricultural land, actually devoted to on the policy of land for the landless, but subject to
agricultural activities, bears in relation to the company’s total such priorities as Congress may prescribe, taking
assets. into account such abstract variable as “equity
considerations.””
2
Landowners, other than banks and other financial institutions,
who voluntarily offer their lands for sale shall be entitled to an
additional five percent (5%) cash payment #7: payment of just compensation
CARPER 101
No.
LAND DISTRIBUTION lands awarded shall be paid for by the beneficiaries
to the LBP in 30 annual amortizations at 6% interest
#1 who are qualified as beneficiaries? per annum;; amortizations start 1 year from the date
of the CLOA/EP or actual occupancy, whichever is
later; affordability provisions6 [RA 6657, sec. 26]
farmers3 and regular farm workers, who are landless
[CONSTI, sec. 4, art. XII]; subject to order of priority
provided in Sec. 22-A #6: are the beneficiaries entitled to do what they please
with the awarded land?
#2 land owner attestation requirement [c/o anakbayan]?
No.
RA 6657, sec. 7; inserted by RA 9700: only farmers may not be sold, transferred, conveyed for a period
and regular farm workers actually tilling the lands as of 10 years; except thru hereditary succession, to the
certified under oath by the BARC and attested under government, to the LBP, other qualified beneficiaries
oath by the landowners, are qualified as []RA 6657, sec. 27]
beneficiaries4
SUPPORT SERVICES
IDEALS: “despite the said provision, it is quite clear in the law,
that tillers other than farmers and regular farm workers are still
improved by RA 9700
entitled to become agrarian reform beneficiaries.
“First, RA 9700 introduced the provision on #1: funding
attestation but it has kept intact Section 22 of the increase in the share of support services in the total
original CARP law. As mentioned, Sec. 22 lists the appropriations for agrarian reform from 25% to 40%
different categories of tillers that may qualify as ARBs [RA 6657, sec. 36]
to include not only tenants or lessees and regular specific apportionment of the support services funds
farm workers, but also the following: seasonal farm to different support service items/programs [RA
workers; other farm workers; actual tillers or 6657, sec. 37]
occupants of public lands; collectives or
cooperatives of tenants/lessees and of the above #2: support service delivery and/or program
types of tillers; and others directly working on the development [RA 5547, sec. 36]
land. adoption of an integrated land acquisition and
“Second, RA 9700 did not introduce any distribution and support services strategy that
modification in Section 22, as originally worded in requires a support service delivery plan to be
RA 6657 even as the Act introduced Section 22-A developed parallel to the land acquisition and
into the CARP law. As shown, Sec. 22-A merely distribution process
affirms the priority of tenants./lessees and regular
farm workers over the other types of beneficiaries in
the distribution of agricultural lands.”
5
IDEALS: “provision replaced the previous rule where the
#3: transfer from govt to beneficiaries starting point for the enjoyment of rights is at the time the DAR
makes an award of the land to him; the present rule is an
rights and responsibilities of beneficiaries commence improvement from the old one because indeed, the rights and
from their receipt of a duly registered emancipation obligations of beneficiaries could only be fully enjoyed or
patent or certificate of land ownership award and fulfilled, respectively, when the beneficiaries are in the actual
their actual physical possession of the awarded land; possession of the land awarded to them.”
6
The payments for the first three (3) years after the award shall
be at reduced amounts as established by the PARC: Provided,
That the first five (5) annual payments may not be more than
five percent (5%) of the value of the annual gross production
3
Natural persons whose primary livelihood is the production of as established by the DAR. Should the scheduled annual
livestock and or fisheries are included in the list of persons payments after the fifth (5th) year exceed ten percent (10%) of
regarded as “farmers,” [RA 6657, sec. 3f; inserted by RA 9700] the annual gross production and the failure to produce
accordingly is not due to the beneficiary's fault, the LBP shall
4
reduce the interest rate and/or reduce the principal obligation
to make the repayment affordable.
CARPER 101
SETTLEMENT OF DISPUTES
improved by RA 9700
may not be sold, mortgaged, transferred, conveyed except by way of may not be sold, transferred, conveyed for a period of 10 years; except thru
hereditary succession. [Sec. 49] hereditary succession, to the government, to the LBP, other qualified beneficiaries
turn over of land to farmers’ organization or cooperative of farmer-beneficiary []RA 6657, sec. 27]
can no longer till the land for one reason or another