COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 .

The State shall apply the principles of agrarian reform or

REPUBLIC ACT NO. 6657 stewardship, whenever applicable, in accordance with law, in the
disposition or utilization of other natural resources, including lands
of the public domain, under lease or concession, suitable to
CHAPTER I agriculture, subject to prior rights, homestead rights of small
PRELIMINARY CHAPTER settlers and the rights of indigenous communities to their ancestral
lands.
SECTION 1. Title. - This Act shall be known as the Comprehensive
Agrarian Reform Law of 1988. The State may resettle landless farmers and farm workers in its
own agricultural estates, which shall be distributed to them in the
SECTION 2. Declaration of Principles and Policies. - It is the policy of manner provided by law.
the State to pursue a Comprehensive Agrarian Reform Program
(CARP). The welfare of the landless farmers and farm workers will By means of appropriate incentives, the State shall encourage the
receive the highest consideration to promote social justice and to formation and maintenance of economic-sized family farms to be
move the nation towards sound rural development and constituted by individual beneficiaries and small landowners.
industrialization, and the establishment of owner cultivatorship of
economic-sized farms as the basis of Philippine agriculture. The State shall protect the rights of subsistence fishermen,
especially of local communities, to the preferential use of
To this end, a more equitable distribution and ownership of land, communal marine and fishing resources, both inland and offshore.
with due regard to the rights of landowners to just compensation It shall provide support to such fishermen through appropriate
and to the ecological needs of the nation, shall be undertaken to technology and research, adequate financial, production and
provide farmers and farm workers with the opportunity to enhance marketing assistance and other services, The State shall also
their dignity and improve the quality of their lives through greater protect, develop and conserve such resources. The protection shall
productivity of agricultural lands. extend to offshore fishing grounds of subsistence fishermen against
foreign intrusion. Fishworkers shall receive a just share from their
The agrarian reform program is founded on the right of farmers and labor in the utilization of marine and fishing resources.
regular farm workers, who are landless, to own directly or
collectively the lands they till or, in the case of other farm workers, The State shall be guided by the principles that land has a social
to receive a share of the fruits thereof. To this end, the State shall function and land ownership has a social responsibility. Owners of
encourage the just distribution of all agricultural lands, subject to agricultural land have the obligation to cultivate directly or through
the priorities and retention limits set forth in this Act, having taken labor administration the lands they own and thereby make the land
into account ecological, developmental, and equity considerations, productive.
and subject to the payment of just compensation. The State shall
respect the right of small landowners and shall provide incentives The State shall provide incentives to landowners to invest the
for voluntary land-sharing. proceeds of the agrarian reform program to promote
industrialization, employment and privatization of public sector
The State shall recognize the right of farmers, farm workers and enterprises. Financial instruments used as payment for lands shall
landowners, as well as cooperatives and other independent contain features that shall enhance negotiability and acceptability
farmers' organization, to participate in the planning, organization, in the marketplace.
and management of the program, and shall provide support to
agriculture through appropriate technology and research, and The State may lease undeveloped lands of the public domain to
adequate financial, production, marketing and other support qualified entities for the development of capital-intensive farms,
services.chan robles virtual law library traditional and pioneering crops especially those for exports subject
to the prior rights of the beneficiaries under this Act.
SECTION 3. Definitions. - For the purpose of this Act, unless the agricultural purposes. It does not include land which has become
context indicates otherwise: unproductive by reason of force majeure or any other fortuitous
event: Provided, that prior to such event, such land was previously
(a) Agrarian Reform means the redistribution of lands, regardless of used for agricultural or other economic purposes.
crops or fruits produced, to farmers and regular farm workers who
are landless, irrespective of tenurial arrangement, to include the (f) Farmer refers to a natural person whose primary livelihood is
totality of factors and support services designed to lift the cultivation of land or the production of agricultural crops either by
economic status of the beneficiaries and all other arrangements himself, or primarily with the assistance of his immediate farm
alternative to the physical redistribution of lands, such as household, whether the land is owned by him, or by another person
production or profit-sharing, labor administration, and the under a leasehold or share tenancy agreement or arrangement
distribution of shares of stock which will allow beneficiaries to with the owner thereof.
receive a just share of the fruits of the lands they work.
(g) Farmworker is a natural person who renders service for value as
(b) Agriculture, Agricultural Enterprise or Agricultural an employee or laborer in an agricultural enterprise or farm
Activity means the cultivation of the soil, planting of crops, growing regardless of whether his compensation is paid on a daily, weekly,
of fruit trees, including the harvesting of such farm products, and monthly or "pakyaw" basis. The term includes an individual whose
other farm activities and practices performed by a farmer in work has ceased as a consequence of, or in connection with, a
conjunction with such farming operations done by persons whether pending agrarian dispute who has not obtained a substantially
natural of juridical. (As amended by R. A. 7881)chan robles virtual equivalent and regular farm employment.
law library
(h) Regular Farmworker is a natural person who is employed on a
(c) Agricultural Land refers to land devoted to agricultural activity permanent basis by an agricultural enterprise or farm.
as defined in this Act and not classified as mineral, forest,
residential, commercial or industrial land. (i) Seasonal Farmworker is a natural person who is employed on a
recurrent, periodic or intermittent basis by an agricultural
(d) Agrarian Dispute refers to any controversy relating to tenurial enterprise or farm, whether as a permanent or a non-permanent
arrangements, whether leasehold, tenancy, stewardship or laborer, such as "dumaan", "sacada", and the like.
otherwise, over lands devoted to agriculture, including disputes
concerning farm workers' associations or representation of persons (j) Other Farmworker is a farmworker who does not fall under
in negotiating, fixing, maintaining, changing or seeking to arrange paragraphs (g), (h) and (i).
terms or conditions of such tenurial arrangements.
(k) Cooperatives shall refer to organizations composed primarily of
It includes any controversy relating to compensation of lands small agricultural producers, farmers, farm workers, or other
acquired under this Act and other terms and conditions of transfer agrarian reform beneficiaries who voluntarily organize themselves
of ownership from landowners to farm workers, tenants and other for the purpose of pooling land, human, technological, financial or
agrarian reform beneficiaries, whether the disputants stand in the other economic resources, and operated on the principle of one
proximate relation of farm operator and beneficiary, landowner and member, one vote. A juridical person may be a member of a
tenant, or lessor and lessee. cooperative, with the same rights and duties as a natural person.

(e) Idle or Abandoned Land refers to any agricultural land not

cultivated, tilled or developed to produce any crop nor devoted to CHAPTER II
any specific economic purpose continuously for a period of three COVERAGE
(3) years immediately prior to the receipt of notice of acquisition by
the government as provided under this Act, but does not include
land that has become permanently or regularly devoted to non-
SEC. 4. Scope. - The Comprehensive Agrarian Reform Law of 1988 The right to choose the area to be retained, which shall be compact
shall cover, regardless of tenurial arrangement and commodity or contiguous, shall pertain, to the landowner: Provided,
produced, all public and private agricultural lands as provided in however, That in case the area selected for retention by the
Proclamation No. 131 and Executive Order No. 229, including other landowner is tenanted, the tenant shall have the option to choose
lands of the public domain suitable for agriculture. whether to remain therein or be a beneficiary in the same or
another agricultural land with similar or comparable features. In
More specifically, the following lands are covered by the case the tenant chooses to remain in the retained area, he shall be
Comprehensive Agrarian Reform Program: considered a leaseholder and shall lose his right to be a beneficiary
under this Act. In case the tenant chooses to be a beneficiary in
(a) All alienable and disposable lands of the public domain another agricultural land, he loses his right as a leaseholder to the
devoted to or suitable for agriculture. No reclassification of land retained by the landowner. The tenant must exercise this
forest or mineral lands to agricultural lands shall be option within a period of one (1) year from the time the landowner
undertaken after the approval of this Act until Congress, manifests his choice of the area for retention.
taking into account ecological, developmental and equity
considerations, shall have determined by law, the specific In all cases, the security of tenure of the farmers or farm workers
limits of the public domain; on the land prior to the approval of this Act shall be respected.
b) All lands of the public domain in excess to the specific
limits as determined by Congress in the preceding Upon the effectivity of this Act, any sale, disposition, lease,
paragraph; management contract or transfer of possession of private lands
c) All other lands owned by the Government devoted to or executed by the original landowner in violation of this Act shall be
suitable for agriculture; andchan robles virtual law library null and void: Provided, however, That those executed prior to this
d) All private lands devoted to or suitable for agriculture Act shall be valid only when registered with the Register of Deeds
regardless of the agricultural products raised or that can be within a period of three (3) months after the effectivity of this Act .
raised thereon. Thereafter, all Registers of Deeds shall inform the DAR within thirty
SEC. 5. Schedule of Implementation. - The distribution of all lands (30) days of any transaction involving agricultural lands in excess
covered by this Act shall be implemented immediately and of five (5) hectares.
completed within ten (10) years from the effectivity thereof.
SEC. 7. Priorities. - The DAR, in coordination with the PARC shall
SEC. 6. Retention Limits. - Except as otherwise provided in this Act, plan and program the acquisition and distribution of all agricultural
no person may own or retain, directly, any public or private lands through a period of ten (10) years from the effectivity of this
agricultural land, the size of which shall vary according to factors Act. Lands shall be acquired and distributed as follows:
governing a viable family-sized farm, such as commodity produced,
terrain, infrastructure, and soil fertility as determined by the Phase One: Rice and corn lands under Presidential Decree
Presidential Agrarian Reform Council (PARC) created hereunder, but No. 27; all idle or abandoned lands; all private lands
in no case shall the retention by the landowner exceed five (5) voluntarily offered by the owners for agrarian reform; all
hectares. Three (3) hectares may be awarded to each child of the lands foreclosed by government financial institution; all
landowner, subject to the following qualifications: (1) that he is at lands acquired by the Presidential Commission on Good
least fifteen (15) years of age; and (2) that he is actually tilling the Government (PCGG); and all other lands owned by the
land or directly managing the farm: Provided, That landowners government devoted to or suitable for agriculture, which
whose lands have been covered by Presidential Decree No. 27 shall shall be acquired and distributed immediately upon the
be allowed to keep the area originally retained by them effectivity of this Act, with the implementation to be
thereunder; Provided, further, That original homestead grantees or completed within a period of not more than four (4) years;
direct compulsory heirs who still own the original homestead at the Phase two: All alienable and disposable public agricultural
time of the approval of this Act shall retain the same areas as long lands; all arable public agricultural lands under agro-forest,
as they continue to cultivate said homestead. pasture and agricultural leases already cultivated and
 planted to crops in accordance with Section 6, Article XIII of be a beneficiary of the land he does not own but is actually
the Constitution; all public agricultural lands which are to be cultivating to the extent of the difference between the area of the
opened for new development and resettlement; and all land he owns and the award ceiling of three (3) hectares.
private agricultural lands in excess of fifty (50) hectares,
insofar as the excess hectarage is concerned, to implement SEC. 8. Multinational Corporations. - All lands of the public domain
principally the right of farmers and regular farm workers, leased, held or possessed by multinational corporations or
who are landless, to own directly or collectively the lands associations, and other lands owned by the government or
they till, which shall be distributed immediately upon the government-owned or controlled corporations, associations,
effectivity of this Act, with the implementation to be institutions or entities, devoted to existing and operational
completed within a period of not more than four (4) years. agribusiness or agro-industrial enterprises, operated by
Phase Three: All other private agricultural lands multinational corporations and associations, shall be programmed
commencing with large landholdings and proceeding to for acquisition and distribution immediately upon the effectivity of
medium and small landholdings under the following this Act, with the implementation to be completed within three (3)
schedule: years.
a) Landholdings above twenty-four (24) hectares up
to fifty (50) hectares, to begin on the fourth (4th) Lands covered by the paragraph immediately preceding, under
year from the effectivity of this Act and to be lease, management, grower or service contracts, and the like, shall
completed within three (3) years; and be disposed of as follows:
b) Landholdings from the retention limit up to
twenty-four (24) hectares, to begin on the sixth (6th)
year from the effectivity of this Act and to be (a) Lease, management, grower or service contracts
completed within four (4) years; to implement covering such lands covering an aggregate area in excess of
principally the right of farmers and regular 1,000 hectares, leased or held by foreign individuals in
farmworkers who are landless, to own directly or excess of 500 hectares are deemed amended to confirm
collectively the lands they till. with the limits set forth in Section 3 of Article XIII of the
The schedule of acquisition and redistribution of all agricultural Constitution.
lands covered by this program shall be made in accordance with (b) Contracts covering areas not in excess of 1,000
the above order of priority, which shall be provided in the hectares in the case of such individuals shall be allowed to
implementing rules to be prepared by the Presidential Agrarian continue under their original terms and conditions but not
Reform Council (PARC), taking into consideration the following: the beyond August 29, 1992, or their valid termination,
need to distribute lands to the tiller at the earliest practicable time; whichever comes sooner, after which, such agreements
the need to enhance agricultural productivity; and the availability shall continue only when confirmed by the appropriate
of funds and resources to implement and support the program. government agency. Such contracts shall likewise continue
even after the land has been transferred to beneficiaries or
awardees thereof, which transfer shall be immediately
In any case, the PARC, upon recommendation by the Provincial commenced and implemented within the period of three (3)
Agrarian Reform Coordinating Committee (PARCCOM), may declare years mentioned in paragraph 1 hereof.
certain provinces or regions as priority land reform areas, in which (c) In no case will such leases and other agreements now
case the acquisition and distribution of private agricultural lands being implemented extend beyond August 29, 1992, when
therein may be implemented ahead of the above schedules. In all lands subject hereof shall have been distributed
effecting the transfer within these guidelines, priority must be completely to qualified beneficiaries or awardees. Such
given to lands that are tenanted. agreements can continue thereafter only under a new
contract between the government or qualified beneficiaries
The PARC shall establish guidelines to implement the above or awardees, on the one hand, and said enterprises, on the
priorities and distribution scheme, including the determination of other.chan robles virtual law library
who are qualified beneficiaries: Provided, That an owner-tiller may
Lands leased, held or possessed by multinational corporations, SEC. 9. Ancestral Lands. - For purposes of this Act, ancestral lands
owned by private individuals and private non-governmental of each indigenous cultural community shall include, but not be
corporations, associations, institutions, and entities, citizens of the limited to, lands in the actual, continuous and open possession and
Philippines, shall be subject to immediate compulsory acquisition occupation of the community and its members: Provided, That the
and distribution upon the expiration of the applicable lease, Torrens System shall be respected.
management grower of service contract in effect as of August 29,
1987, or otherwise, upon its valid termination, whichever comes The right of these communities to their ancestral lands shall be
sooner, but not later than after ten (10) years following the protected to ensure their economic, social and cultural well-being.
effectivity of this Act . However, during the said period of In line with the other principles of self-determination and
effectivity, the government shall take steps to acquire these lands autonomy, the systems of land ownership, land use, and the modes
for immediate distribution thereafter. of settling land disputes of all these communities must be
recognized and respected.
In general, lands shall be distributed directly to the individual
worker-beneficiaries. In case it is not economically feasible and Any provision of law to the contrary notwithstanding, the PARC may
sound to divide the land, then they shall form a workers' suspend the implementation of this Act with respect to ancestral
cooperative or association which will deal with the corporation or lands for the purpose of identifying and delineating such
business association or any other proper party, for the purpose of lands:Provided, That in the autonomous regions, the respective
entering into a lease or growers agreement and for all other legislatures may enact their own laws on ancestral domain subject
legitimate purposes. Until a new agreement is entered into by and to the provisions of the Constitution and the principles enunciated
between the workers' cooperative or association and the in this Act and other national laws.
corporation or business association or any other proper party, any
agreement existing at the time this Act takes effect between the SEC. 10. Exemptions and Exclusions.-
former and the previous landowner shall be respected by both the
workers' cooperative or association and the corporation, business
association or such other proper party. In no case shall the (a) Lands actually, directly and exclusively used for parks, wildlife,
implementation or application of this Act justify or result in the forest reserves, reforestation, fish sanctuaries and breeding
reduction of status or diminution of any benefits received or grounds, watersheds and mangroves shall be exempt from the
enjoyed by the worker-beneficiaries, or in which they may have a coverage of this Act.
vested right, at the time this Act becomes effective.
(b) Private lands actually, directly and exclusively used for prawn
The provision of Section 32 of this Act, with regard to production farms and fishponds shall be exempt from the coverage of this
and income-sharing shall apply to farms operated by multinational Act: Provided, That said prawn farms and fishponds have not been
corporations. distributed and Certificate of Land Ownership Award (CLOA) issued
under the Agrarian Reform Program.
During the transition period, the new owners shall be assisted in
their efforts to learn modern technology in production. Enterprises In cases where the fishponds or prawn farms have been subjected
which show a willingness and commitment and good faith efforts to to the Comprehensive Agrarian Reform Law, by voluntary offer to
impart voluntarily such advanced technology will be given sell, or commercial farms deferment or notices of compulsory
preferential treatment where feasible. acquisition, a simple and absolute majority of the actual regular
workers or tenants must consent to the exemption within one (1)
year from the effectivity of this Act. When the workers or tenants
In no case shall a foreign corporation, association, entity or do not agree to this exemption, the fishponds or prawn farms shall
individual enjoy any rightr or privileges better than those enjoyed be distributed collectively to the worker-beneficiaries or tenants
by a domestic corporation, association, entity or individual. who shall form cooperative or association to manage the same.
In cases where the fishponds or prawn farms have not been SEC. 12-A. Incentives. - Individuals and entities owning or operating
subjected to the Comprehensive Agrarian Reform Law, the consent fishpond and prawn farms are hereby mandated to execute within
of the farmworkers shall no longer be necessary; however, the six (6) months from the effectivity of this Act, an incentive plan
provision of Section 32-A hereof on incentives shall apply. with their regular fishpond or prawn farm workers or fishpond or
prawn farm workers' organization, if any, whereby seven point five
(c) Lands actually, directly and exclusively used and found to be percent (7.5%) of their net profit before tax from the operation of
necessary for national defense, school sites and campuses, the fishpond or prawn farms are distributed within sixty (60) days
including experimental farm stations operated by public or private at the end of the fiscal year as compensation to regular and other
schools for educational purposes, seeds and seedlings research and pond workers in such ponds over and above the compensation they
pilot production center, church sites and convents appurtenant currently receive.
thereto, mosque sites and Islamic centers appurtenant thereto,
communal burial grounds and cemeteries, penal colonies and penal In order to safeguard the right of the regular fishpond or prawn
farms actually worked by the inmates, government and private farm workers under the incentives plan, the book of the fishpond or
research and quarantine centers and all lands with eighteen prawn farm owners shall be subject to periodic audit or inspection
percent (18%) slope and over, except those already developed, by certified public accountants chosen by the workers.
shall be exempt from the coverage of this Act.(As amended by R. A. The foregoing provision shall not apply to agricultural lands
7881) subsequently converted to fishponds or prawn farms provided the
size of the land converted does not exceed the retention limit of
SEC. 11. Commercial Farming. - Commercial farms which are the landowner. (As added by R. A. 7881)
private agricultural lands devoted to salt beds, fruit farms,
orchards, vegetable and cut-flower farms, and cacao, coffee and SEC. 13. Production-Sharing Plan. - Any enterprise adopting the
rubber plantations, shall be subject to immediate compulsory scheme provided for in Section 32 or operating under a production
acquisition and distribution after ten (10) years from the effectivity venture, lease, management contract or other similar arrangement
of this Act. In the case of new farms, the ten-year period shall and any farm covered by Sections 8 and 11 hereof is hereby
begin from the first year of commercial production and operation, mandated to execute within ninety (90) days from the effectivity of
as determined by the DAR. During the ten-year period, the this Act, a production-sharing plan under guidelines prescribed by
Government shall initiate steps necessary to acquire these lands, the appropriate government agency.
upon payment of just compensation for the land and the
improvements thereon, preferably in favor of organized Nothing herein shall be construed to sanction the diminution of any
cooperatives or associations, which shall thereafter manage the benefits such as salaries, bonuses, leaves and working conditions
said lands for the workers-beneficiaries.(As amended by R. A. 7881) granted to the employee-beneficiaries under existing laws,
agreements, and voluntary practice by the enterprise, nor shall the
CHAPTER III enterprise and its employee-beneficiaries be prevented from
IMPROVEMENT OF TENURIAL AND LABOR RELATIONS entering into any agreement with terms more favorable to the
latter.chan robles virtual law library
SEC. 12. Determination of Lease Rentals. - In order to protect and
improve the tenurial and economic status of the farmers in
tenanted lands under the retention limit and lands not yet acquired
under this Act, the DAR is mandated to determine and fix CHAPTER IV
immediately the lease rentals thereof in accordance with Section REGISTRATION
34 of R. A. No. 3844 as amended : Provided, That the DAR shall
immediately and periodically review and adjust the rental structure SEC. 14. Registration of Landowners. - Within one hundred eighty
for different crops, including rice and corn, of different regions in (180) days from the effectivity of this Act, natural or juridical,
order to improve progressively the conditions of the farmer, tenant including government entities, that own or claim to own agricultural
or lessee. lands, whether in their names or in the name of others, except
those who have already registered pursuant to Executive Order No. SEC. 16. Procedure for Acquisition of Private Lands.- For purposes
229, who shall be entitled to such incentives as may be provided of acquisition of private lands, the following procedures shall be
for by PARC, shall file a sworn statement in the proper assessors followed:
office in the form to be prescribed by the DAR, stating the following
information: (a) After having identified the land, the landowners and the
beneficiaries, the DAR shall send its notice to acquire the
(a) The description and area of the property; land to the owners thereof, by personal delivery or
(b) The average gross income from the property for at least registered mail, and post the same in a conspicuous place in
three (3) years; the municipal building and barangay hall of the place where
(c) The names of the tenants and farm workers therein; the property is located. Said notice shall contain the offer of
(d) The crops planted in the property and the area covered by the DAR to pay a corresponding value in accordance with
each crop as of June 1,1987; the valuation set forth in Sections 17, 18, and other
(e) The terms of mortgages, leases, and management contracts pertinent provisions hereof.
subsisting as of June 1, 1987; and (b) Within thirty (30) days from the date of receipt of written
(f) The latest declared market value of the land as determined by notice by personal delivery or registered mail, the
the city or provincial assessor. landowner, his administrator or representative shall inform
the DAR of his acceptance or rejection of the offer.
SEC. 15. Registration of Beneficiaries. - The DAR in coordination (c) If the landowner accepts the offer of the DAR, the LBP
with the Barangay Agrarian Reform Committee (BARC) as shall pay the landowner the purchase price of the land
organized in this Act, shall register all agricultural lessees, tenants within thirty (30) days after he executes and delivers a deed
and farmworkers who are qualified to be beneficiaries with the of transfer in favor of the Government and surrenders the
assistance of the BARC and the DAR shall provide the following Certificate of Title and other muniments of title.
data: (d) In case of rejection or failure to reply, the DAR shall
conduct summary administrative proceedings to determine
(a) Names and members of their immediate farm household; the compensation of the land by requiring the landowner,
(b) Location and area of the land they work; the LBP and other interested parties to summit evidence as
(c) Crops planted; and to the just compensation for the land, within fifteen (15)
(d) Their share in the harvest or amount of rental paid or wages days from the receipt of the notice. After the expiration of
received. the above period, the matter is deemed submitted for
decision. The DAR shall decide the case within thirty (30)
days after it is submitted for decision.
A copy of the registry or list of all potential CARP beneficiaries in (e) Upon receipt by the landowner of the corresponding
the barangay shall be posted in the barangay hall, school or other payment or in case of rejection or no response from the
public buildings in the barangay where it shall be open to landowner, upon the deposit with an accessible bank
inspection by the public at all reasonable hours. designated by the DAR of the compensation in cash or LBP
bonds in accordance with this Act, the DAR shall take
immediate possession of the land and shall request the
proper Register of Deeds to issue a Transfer Certificate of
CHAPTER V Title (TCT) in the name of the Republic of the Philippines.
LAND ACQUISITION The DAR shall thereafter proceed with the redistribution of
the land to the qualified beneficiaries.
(f) Any party who disagrees with the decision may bring the
matter to the court of proper jurisdiction for final
determination of just compensation.
 (a) Market interest rates aligned with 91-day treasury bill
CHAPTER VI rates. Ten percent (10%) of the face value of the bonds shall
COMPENSATION mature every year from the date of issuance until the tenth
(10th) year:Provided, That should the landowner choose to
SEC. 17. Determination of Just Compensation. - In determining just forego the cash portion, whether in full or in part, he shall be
compensation, the cost of acquisition of the land, the current value paid correspondingly in LBP bonds;
of like properties, its nature, actual use and income, the sworn (b) Transferability and negotiability. Such LBP bonds may be
valuation by the owner, the tax declarations, and the assessment used by the landowner, his successors-in-interest or his
made by government assessors, shall be considered. The social and assigns, up to the amount of their face value for any of the
economic benefits contributed by the farmers and the farmworkers following:
and by government to the property as well as the non-payment of (i) Acquisition of land or other real properties of the
taxes or loans secured from any government financing institution government, including assets under the Assets
on the said land shall be considered as additional factors to Privatization Program and other assets foreclosed by
determine its valuation. government financial institution in the same province
or region where the lands for which the bonds were
SEC. 18. Valuation and Mode of Compensation. - The LBP shall paid are situated;
compensate the landowner in such amount as may be agreed upon (ii) Acquisition of shares of stock of government-
by the landowner and the DAR and LBP or as may be finally owned or controlled corporations or shares or stock
determined by the court as just compensation for the land. owned by the government in private
corporations;chan robles virtual law library
(iii) Substitution for surety or bail bonds for the
The compensation shall be paid in one of the following modes at provisional release of accused persons, or for
the option of the landowner: performance bonds;
(iv) Security for loans with any government financial
(1) Cash payment, under the following terms and conditions: institution, provided the proceeds of the loans shall
be invested in an economic enterprise, preferably in
(a) For lands above fifty (50) hectares, insofar as the a small and medium-scale industry, in the same
excess hectarage isconcerned - Twenty-five percent (25%) province or region as the land for which the bonds
cash, the balance to be paid in government financial are paid;
instruments negotiable at any time. (v) Payment for various taxes and fees to the
(b) For lands above twenty-four hectares and up to fifty (50) government: Provided, That the use of these bonds
hectares - Thirty percent (30%) cash, the balance to be paid for these purposes will be limited to a certain
in government financial instruments negotiable at any time. percentage of the outstanding balance of the
(c) For lands twenty-four (24) hectares and below - Thirty- financial instrument: Provided, further, That the PARC
five percent (35%) cash, the balance to be paid in shall determine the percentages mentioned above;
government financial instruments negotiable at any time. (vi) Payment for tuition fees of the immediate family
(2) Shares of stock in government-owned or controlled of the original bondholder in government
corporations, LBP preferred shares, physical assets or other universities, colleges, trade schools and other
qualified investments in accordance with guidelines set by the institutions;
PARC; (vii) Payment for fees of the immediate family of the
original bondholder in government hospitals; and
(3) Tax credits which can be used against any tax liability; (viii) Such other uses as the PARC may from time to
time allow.
(4) LBP bonds, which shall have the following features: In case of extraordinary inflation, the PARC shall take
appropriate measures to protect the economy.
SEC. 19. Incentives for Voluntary Offers for Sale. - Landowners (a) agricultural lessees and share tenants;
other than banks and other financial institutions who voluntarily (b) regular farm workers;
offer their lands for sale shall be entitled to an additional five (c) seasonal farm workers;
percent (5%) cash payment. (d) other farm workers;
(e) actual tillers or occupants of public lands;
SEC. 20. Voluntary Land Transfer. - Landowners of agricultural (f) collective or cooperatives of the above beneficiaries; and
lands subject to acquisition under this Act may enter into a (g) others directly working on the land.
voluntary arrangement for direct transfer of their lands to qualified
beneficiaries subject to the following guidelines: Provided, however, That the children of landowners who are
qualified under Section 6 of this Act shall be given preference in the
(a) All notices for voluntary land transfer must be submitted distribution of the land of their parents; and: Provided, further, that
to the DAR within the first year of the implementation of the actual tenant -tillers in the landholding shall not be ejected or
CARP. Negotiations between the landowners and qualified removed therefrom.
beneficiaries covering any voluntary land transfer which
remain unresolved after one (1) year shall not be recognized Beneficiaries under Presidential Decree No. 27 who have culpably
and such land shall instead be acquired by the government sold, disposed of, or abandoned their land are disqualified to
and transferred pursuant to this Act. become beneficiaries under their program.
(b) The terms and conditions of such transfer shall not be
less favorable to the transferee than those of the A basic qualification of a beneficiary shall be his willingness,
government 's standing offer to purchase from the aptitude and ability to cultivate and make land as productive as
landowner and to resell to the beneficiaries, if such offers possible. The DAR shall adopt a system of monitoring the record or
have been made and are fully known to both parties. performance of each beneficiary, so that any beneficiary guilty of
(c) The voluntary agreement shall include sanctions for non- negligence or misuse of the land or any support extended to him
compliance by either party and shall be duly recorded and shall forfeit his right to continue as such beneficiary. The DAR shall
its implementation monitored by the DAR. submit periodic reports on the performance of the beneficiaries to
SEC. 21. Payment of Compensation by Beneficiaries Under the PARC.
Voluntary Land Transfer.- Direct payment in cash or in kind may be
made by the farmer-beneficiary to the landowner under terms to be If, due to landowner's retention rights or to the number of tenants,
mutually agreed upon by both parties, which shall be binding upon lessees, or workers on the land, there is not enough land to
them, upon registration with and approval by the DAR. Said accommodate any or some of them, they may be granted
approval shall be considered given, unless notice of disapproval is ownership of other lands available for distribution under this Act, at
received by the farmer-beneficiary within 30 days from the date of the option of the beneficiaries.
registration.In the event they cannot agree on the price of the land,
the procedure for compulsory acquisition as provided in Section 16
shall apply. The LBP shall extend financing to the beneficiaries for Farmers already in place and those not accommodated in the
purposes of acquiring the land. distribution of privately-owned lands will be given preferential
rights in the distribution of lands from the public domain.

CHAPTER VII SEC. 23. Distribution Limit. - No qualified beneficiary may own more
LAND REDISTRIBUTION than three (3) hectares of agricultural land.

SEC. 22. Qualified Beneficiaries. - The lands covered by the CARP SEC. 24. Award to Beneficiaries. - The rights and responsibilities of
shall be distributed as much as possible to landless residents of the the beneficiary shall commence from the time the DAR makes an
same barangay, or in the absence thereof, landless residents of the award of the land to him, which award shall be completed within
same municipality in the following order of priority: one hundred eighty (180) days from the time the DAR takes actual
possession of the land. Ownership of the beneficiary shall be SEC. 27. Transferability of Awarded Lands. - Lands acquired by
evidenced by a Certificate of Land Ownership Award, which shall beneficiaries under this Act may not be sold, transferred or
contain the restrictions and conditions provided for in this Act, and conveyed except through hereditary succession, or to the
shall be recorded in the Register of Deeds concerned and government, or to the LBP, or to other qualified beneficiaries for a
annotated on the Certificate of Title. period of ten (10) years: Provided, however, That the children or
the spouse of the transferor shall have a right to repurchase the
SEC. 25. Award Ceilings for Beneficiaries. - Beneficiaries shall be land from the government or LBP within a period of two (2) years.
awarded an area not exceeding three (3) hectares, which may Due notice of the availability of the land shall be given by the LBP
cover a contiguous tract of land or several parcels of land to the Barangay Agrarian Reform Committee (BARC) of the
cumulated up to the prescribed award limits. barangay where the land is situated. The Provincial Agrarian
Coordinating Committee (PARCCOM), as herein provided, shall, in
For purposes of this Act, a landless beneficiary is one who owns turn, be given due notice thereof by the BARC.
less than three (3) hectares of agricultural land. The beneficiaries If the land has not yet been fully paid by the beneficiary, the right
may opt for collective ownership, such as co-workers or farmers' to the land may be transferred or conveyed, with prior approval of
cooperative or some other form of collective the DAR, to any heir of the beneficiary or to any other beneficiary
organization: Provided, That the total area that may be awarded who, as a condition for such transfer or conveyance, shall cultivate
shall not exceed the total number of co-workers or members of the the land himself. Failing compliance herewith, the land shall be
cooperative or collective organization multiplied by the award limit transferred to the LBP which shall give due notice of the availability
above prescribed, except in meritorious cases as determined by of the land in the manner specified in the immediately preceding
the PARC. Title to the property shall be issued in the name of the paragraph.
co-owners or the cooperative or collective organization as the case In the event of such transfer to the LBP, the latter shall compensate
may be. the beneficiary in one lump sum for the amounts the latter has
already paid, together with the value of improvements he has
made on the land.
SEC. 26. Payment by Beneficiaries. - Lands awarded pursuant to
this Act shall be paid for by the beneficiaries to the LBP in thirty
(30) annual amortizations at six percent (6%) interest per annum. SEC. 28 . Standing Crops at the Time of Acquisition. - The
The payments for the firs three (3) years after the award may be at landowner shall retain his share of any standing crops unharvested
reduced amounts as established by the PARC : Provided, That the at the time the DAR shall take possession of the land under Section
first five (5) annual payments may not be more than five percent 16 of this Act, and shall be given a reasonable time to harvest the
(5%) of the value of the annual gross production is paid as same.
established by the DAR. Should the scheduled annual payments
after the fifth year exceed ten percent (10) of the annual gross
production and the failure to produce accordingly is not due to the
beneficiary's fault, the LBP may reduce the interest rate or reduce CHAPTER VIII
the principal obligation to make the payment affordable. CORPORATE FARMS

The LBP shall have a lien by way of mortgage on the land awarded SEC. 29. Farms Owned or Operated by Corporations or Other
to beneficiary and this mortgage may be foreclosed by the LBP for Business Associations. - In the case of farms owned or operated by
non-payment of an aggregate of three (3) annual amortizations. corporations or other business associations, the following rules
The LBP shall advise the DAR of such proceedings and the latter shall be observed by the PARC.
shall subsequently award the forfeited landholding to other
qualified beneficiaries. A beneficiary whose land as provided herein In general, lands shall be distributed directly to the individual
has been foreclosed shall thereafter be permanently disqualified worker-beneficiaries.
from becoming a beneficiary under this Act.
In case it is not economically feasible and sound to divide the land, (b) Irrespective of the value of their equity in the
then it shall be owned collectively by the worker-beneficiaries who corporation or association, the beneficiaries shall be assured
shall form a workers' cooperative or association which will deal with of at least one (1) representative in the board of directors,
the corporation or business association. Until a new agreement is or in a management or executive committee, if one exists,
entered into by and between the workers' cooperative or of the corporation or association;
association and the corporation or business association, any (c) Any shares acquired by such workers and beneficiaries
agreement existing at the time this Act takes effect between the shall have the same rights and features as all other shares;
former and the previous landowner shall be respected by both the and
workers' cooperative or association and the corporation or business (d) Any transfer of shares of stocks by the original
association. beneficiaries shall be void ab initio unless said transaction is
in favor of a qualified and registered beneficiary within the
SEC. 30. Homelots and Farmlots for Members of Cooperatives. - The same corporation.
individual members of the cooperatives or corporations mentioned If within two (2) years from the approval of this Act, the land or
in the preceding section shall be provided with homelots and small stock transfer envisioned above is not made or realized or the plan
farmlots for their family use, to be taken from the land owned by for such stock distribution approved by the PARC within the same
the cooperative or corporation. period, the agricultural land of the corporate owners or corporation
shall be subject to the compulsory coverage of this Act.
SEC. 31. Corporate Landowners. - Corporate landowners may
voluntarily transfer ownership over their agricultural landholdings SEC. 32. Production-Sharing. - Pending final land transfer,
to the Republic of the Philippines pursuant to Section 20 hereof or individuals or entities owning, or operating under lease or
to qualified beneficiaries, under such terms and conditions management contract, agricultural lands are hereby mandated to
consistent with this Act, as they may agree upon, subject to execute a production-sharing plan with their farmworkers or
confirmation by the DAR. farmworkers' organization, if any, whereby three percent (3%) of
the gross sales from the production of such lands are distributed
Upon certification by the DAR, corporations owning agricultural within sixty (60) days at the end of the fiscal year as compensation
lands may give their qualified beneficiaries the right to purchase to regular and other farmworkers in such lands over and above the
such proportion of the capital stock of the corporation that the compensation they currently receive: Provided, That these
agricultural land, actually devoted to agricultural activities, bears in individuals or entities realize gross sales in excess of five million
relation to the company's total assets, under such terms and pesos per annum unless the DAR, upon proper application,
conditions as may be agreed upon by them. In no case shall the determines a lower ceiling.chan robles virtual law library
compensation received by the workers at the time the shares of
stocks are distributed be reduced. The same principle shall be In the event that the individual or entity realizes a profit, an
applied to associations, with respect to their equity or participation. additional ten percent (10%) of the net profit after tax shall be
distributed to said regular and other farmworkers within ninety
days at the end of the fiscal year. To forestall any disruption in the
Corporations or associations which voluntarily divest a proportion of normal operation of lands to be turned over to the farmworker-
their capital stock, equity or participation in favor of their workers beneficiaries mentioned above, a transitory period, the length of
or other qualified beneficiaries under this section shall be deemed which shall be determined by the DAR, will be established.
to have complied with the provisions of this Act: Provided, That the
following condition are complied with:
During this transitory period, at least one percent (1%) of the gross
sales of the entity shall be distributed to the managerial,
(a) In order to safeguard the right of beneficiaries who own supervisory and technical group in place at the time of the
shares of stocks to dividends and other financial benefits, effectivity of this Act, as compensation for such transitory
the books of the corporation or association shall be subject managerial and technical function it will perform, pursuant to an
to periodic audit by certified public accountants chosen by agreement that the farmworker-beneficiaries and the managerial,
the beneficiaries;
supervisory and technical group may conclude, subject to the for this purpose, the preparation of the physical
approval of the DAR. development plan of such settlements providing suitable
barangay sites, potable water and power resources,
SEC. 33. Payment of Shares of Cooperative or Association. - Shares irrigation systems, seeds and seedling banks, post harvest
of a cooperative or association acquired by farmers-beneficiaries or facilities, and other facilities for a sound agricultural
workers-beneficiaries shall be fully paid for in an amount development plan. For the purpose of providing the
corresponding to the valuation as determined in the immediately aforecited infrastructure and facilities, the DAR is authorized
succeeding section. The landowner and the LBP shall assist the to enter into contracts with interested private parties on
farmer-beneficiaries and worker-beneficiaries in the payment for long term basis or through joint venture agreements or
said shares by providing credit financing. build-operate-transfer scheme:
(3) Government subsidies for the use of irrigation facilities
SEC. 34. Valuation of Lands. - A valuation scheme for the land shall
be formulated by the PARC, taking into account the factors (4) Price support and guarantee for all agricultural produce;
enumerated in Section 17, in addition to the need to stimulate the
growth of cooperatives and the objective of fostering responsible (5) Extending to small landowners, farmers and farmers'
participation of the workers-beneficiaries in the creation of wealth. organizations the necessary credit, like concessional and
collateral-free loans, for agro-industrialization based on
In the determination of a price that is just not only to the individual social collaterals like the guarantees of farmers'
but to society as will, the PARC shall consult closely with the organizations;
landowner and the workers-beneficiaries. (6) Promoting, developing and extending financial
assistance to small and medium-scale industries in agrarian
In case of disagreement, the price determined by the PARC, if reform areas;
accepted by the workers-beneficiaries, shall be followed, without (7) Assigning sufficient numbers of agricultural extension
prejudice to the landowner's right to petition the Special Agrarian workers to farmers' organization;
Court to resolve the issue of valuation. (8) Undertake research, development and dissemination of
information on agrarian reform, plants and crops best suited
for cultivation and marketing, and low cost and ecologically
sound farm inputs and technologies to minimize reliance on
expensive and imported agricultural inputs;
CHAPTER IX (9) Development of cooperative management skills through
SUPPORT SERVICES intensive training;chan robles virtual law library
(9) Assistance in the identification of ready markets for
SEC. 35. Creation of Support Services Office. - There is hereby agricultural produce and training in the other various
created the Office of Support Services under the DAR to be headed aspects of marketing;
by an Undersecretary. (10) Conduct and effective information dissemination
system through the Department of Agriculture to promote
The office shall provide general support and coordinative services marketing and minimize spoilage of agricultural produce
in the implementation of the program, particularly in carrying out and products;
the provisions of the following services to farmer beneficiaries and (11) Create a credit guarantee fund for agricultural
affected landowners: landowners that will enhance the collateral value of
agricultural lands that are affected or will be affected by
(1) Irrigation facilities, especially second crop or dry season coverage under the agrarian reform program; and
irrigation facilities; (12) Administration, operation, management and funding of
(2) Infrastructure development and public works projects in support services programs and projects including pilot
areas and settlement that come under agrarian reform, and
 projects and models related to agrarian reform as developed The Bagong Kilusang Kabuhayan sa Kaunlaran (BKKK) Secretariat
by the DAR.(As amended by R. A. 7905) shall be transferred and attached to the LBP, for its supervision,
SEC. 36. Funding for Support Services. - In order to cover the including all its applicable and existing funds, personnel,
expenses and cost of support, at least twenty-five percent (25%) of properties, equipment and records.
all appropriations for agrarian reform shall immediately be set
aside and made available for this purpose: Provided, That for the Misuse or diversion of the financial and support services herein
next five (5) years, a minimum of one (1) Agrarian Reform provided shall result in sanction against the beneficiary guilty
Community (ARC) shall be established by the DAR, in coordination thereof, including the forfeiture of the land transferred to him or
with the local government units, non-governmental organizations lesser sanctions as may be provided by the PARC, without prejudice
and people's organizations in each legislative district with a to criminal prosecution.
predominant agricultural population: Provided, further, That the
areas in which the ARCs are to be established shall have been fully SEC. 38. Support Services to Landowners. - The PARC, with the
subjected under this law. assistance of such other government agencies and
instrumentalities as it may direct, shall provide landowners affected
For this purpose, an Agrarian Reform Community shall be defined by the CARP and proper agrarian reform programs with the
as a barangay or a cluster of barangays primarily composed and following services:
managed by Agrarian Reform Beneficiaries who shall be willing to
be organized and undertake the integrated development of an area (a) Investment information, financial and counseling assistance;
and/or their organizations/cooperatives. In each community, the
DAR, together with the agencies and organizations above (b) Facilities, programs and schemes for the conversion or
mentioned, shall identify the farmers' association, cooperative or exchange of bonds issued for payment of the lands acquired with
their respective federations approved by the farmers-beneficiaries stocks and bonds issued by the National Government, the central
that shall take the lead in the agricultural development of the area. bank and other government institutions and instrumentalities;
In addition, the DAR shall be authorized to package proposals and
receive grants, aids and other forms of financial assistance from
any source. (As amended by R. A. 7905) (c) Marketing of LBP bonds, as well as promoting the
marketability of said bonds in traditional and non-traditional
financial markets and stock exchanges;
SEC. 37. Support Services to the Beneficiaries. - The PARC shall
ensure that support services to farmer-beneficiaries are provided,
such as: (d) Other services designed to utilize productively the proceeds
of the sale of such lands for rural industrialization.
(a) Land surveys and titling; A landowner who invests in rural-based industries shall be entitled
(b) Liberalized terms of credit facilities and production loans; to the incentives granted to a registered enterprise engaged in a
(c) Extension services by way of planting, cropping, production pioneer or preferred area of investment as provided for in the
and post-harvest technology transfer as well as Omnibus Investment Code of 1987, or to such other incentives as
marketing and management assistance and support to the PARC, the LBP, or other government financial institutions may
cooperatives and farmer organization; provide.
(d) Infrastructure such as access trails, mini-dams, public
utilities, marketing and storage facilities; and
(e) Research, production and use of organic fertilizers and other The LBP shall redeem a landowner's LBP bonds at face
local substances necessary to farming and cultivation. value: Provided, that the proceeds thereof shall be invested in a
BOI- registered company or in any agri-business or agro-industrial
enterprise in the region where the landowner has previously made
The PARC shall formulate policies to ensure that support services to investments, to the extent of thirty percent (30%) of the face value
farmer-beneficiaries shall be provided at all stages of land reform. of said LBP bonds, subject to guidelines that shall be issued by the
LBP.
SEC. 39. Land Consolidation. - the DAR shall carry out land investment and production goals of the lessee. A system of
consolidation projects to promote equal distribution of evaluation and audit will be instituted.
landholdings, to provide the needed infrastructure in agriculture, (4) Idle, abandoned, foreclosed and sequestered lands. -
and to conserve soil fertility and prevent erosion. Idle, abandoned, foreclosed and sequestered lands shall be
planned for distribution as homelots and family-sized farm
lots to actual occupants. If land area permits, other landless
families will be accommodated in these lands.
CHAPTER X (5) Rural Women. - All qualified women members of the
SPECIAL AREAS OF CONCERN agricultural labor force must be guaranteed and assured
equal rights to ownership of the land, equal shares of the
SEC. 40. Special Areas of Concern. - As an integral part of the farm's produce, and representation in advisory or
Comprehensive Agrarian Reform Program, the following principles appropriate decision-making bodies.chan robles virtual law
in these special areas of concern shall be observed: library
(6) Veterans and Retirees. - In accordance with Section 7 of
Article XVI of the Constitution, landless war veterans and
(1) Subsistence Fishing. - Small fisher folk, including veterans of military campaigns, their surviving spouse and
seaweed farmers, shall be assured of greater access to the orphans, retirees of the Armed Forces of the Philippines
utilization of water resources; (AFP) and the Integrated National Police (INP), returnees,
(2) Logging and Mining concessions. - Subject to the surrenderees, and similar beneficiaries shall be given due
requirement of a balanced ecology and conservation of consideration in the disposition of agricultural lands of the
water resources, suitable areas, as determined by the public domain.
Department of Environment and Natural Resources (DENR), (7) Agriculture Graduates. - Graduates of agricultural
in logging, mining and pasture areas, must be opened up for schools who are landless shall be assisted by the
agrarian settlements whose beneficiaries will be required to government, through the DAR, in their desire to own and till
undertake reforestation and conservation of products agricultural lands.
methods. Subject to existing laws, rules and regulation,
settlers and members of tribal communities must be allowed
to enjoy and exploit the products of the forests other than
timber within the logging concessions.
(3) Sparsely Occupied Public Agricultural lands. - Sparsely
occupied agricultural lands of the public domain will be CHAPTER XI
surveyed, proclaimed and developed as farm settlements PROGRAM IMPLEMENTATION
for qualified landless people based on an organized program
to ensure their orderly and early development SEC. 41. The Presidential Agrarian Reform Council. - The
Agricultural land allocations will be made for ideal family- Presidential Agrarian Reform Council (PARC) shall be composed of
sized farms as determined by the PARC. Pioneers and other the President of the Philippines as Chairman, the Secretary of
settlers will be treated equally in every respect. Agrarian Reform as Vice-Chairman and the following as members:
Subject to the prior rights of qualified beneficiaries, Secretaries of the Departments of Agriculture; Environment and
uncultivated lands of the public domain shall be made Natural Resources; Budget and Management ; Local Government;
available on a lease basis to interested and qualified parties. Public Works and Highways; Trade and Industry; Finance; Labor and
Parties who will engage in the development of capital- Employment; Director-General of the National Economic and
intensive, traditional or pioneering crops will be given Development Authority; President, Land Bank of the Philippines;
priority. Administrator, National Irrigation Administration; and three (3)
The lease period, which shall not be more than a total of representatives of affected landowners to represent Luzon, Visayas
fifty (50) years, shall be proportionate to the amount of and Mindanao: Provided, that one of them shall be from the cultural
communities.
SEC. 42. Executive Committee. - There shall be an Executive (1) Market price to be used in the determination of the
Committee (EXCOM) of the PARC composed of the Secretary of the profit-sharing obligation of agricultural entities in the
DAR as Chairman, and such other members as the president may province;
designate, taking into account Article XIII, Section 5 of the (2) Adoption of the direct payment scheme between the
Constitution. Unless otherwise directed by the PARC, the EXCOM landowner and the farmer and/or farmworker-
may meet and decide on any and all matters in between meetings beneficiary: Provided, that the amount and terms of
of the PARC:Provided, however, That its decisions must be reported payment are not more burdensome to the agrarian reform
to the PARC immediately and not later than the next meeting. beneficiary than under the compulsory coverage provision
of the CARL: Provided, further, That the agrarian reform
SEC. 43. Secretariat. - A PARC Secretariat is hereby established to beneficiary agrees to the amount and the terms of
provide general support and coordinative services such as inter- payment : Provided, furthermore, That the DAR shall act as
agency linkages; program and project appraisal and evaluation and mediator in cases of disagreement between the landowner
general operations monitoring for the PARC. and the farmer and/or farmworker-beneficiary: Provided,
The Secretariat shall be headed by the Secretary of Agrarian finally, That the farmer and/or farmer-beneficiary shall be
Reform who shall be assisted by an Undersecretary and supported eligible to borrow from the LBP an amount equal to eighty-
by a staff whose composition shall be determined by the PARC five percent (85%) of the selling price of the land that they
Executive Committee and whose compensation shall be chargeable have acquired;
against the Agrarian Reform Fund. All officers and employees of (3) Continuous processing of applications for lease-back
the Secretariat shall be appointed by the Secretary of Agrarian arrangements, joint venture agreements and other schemes
Reform. that will optimize the operating size for agriculture
production and also promote both security of tenure and
SEC. 44. Provincial Agrarian Reform Coordinating Committee security of income to farmer beneficiaries: Provided, That
(PARCCOM). - A Provincial Agrarian Reform Coordinating Committee lease-back arrangements should be the last resort. (As
is hereby created in each province, composed of a Chairman, who amended by R. A. 7905)
shall be appointed by the President upon the recommendation of SEC. 45 Province-by-Province Implementation. - The PARC shall
the EXCOM, the Provincial Agrarian Reform Officer as Executive provide the guidelines for the province-by-province implementation
Officer, and one (1) representative each from the Department of of the CARP, taking into account peculiarities and needs of each
Agriculture, Department of Environment and Natural Resources and place, kind of crops needed or suited, land distribution workload,
from the LBP; one (1) representative each from existing farmers' beneficiaries' development activities and other factors prevalent or
organizations, agricultural cooperatives and non-governmental obtaining in the area. In all cases, the implementing agencies at
organizations in the province; two (2) representatives from the provincial level shall promote the development of identified
landowners at least one (1) of whom shall be a producer ARCs without neglecting the needs and problems of other
representing the principal crop of the province; and two (2) beneficiaries. The ten-year program of distribution of public and
representatives from farmers and farm workers or beneficiaries, at private land in each province shall be adjusted from year to year by
least one (1) of whom shall be a farmer or farmworker representing the province's PARCCOM in accordance with the level of operations
the principal crop of the province, as members: Provided, That in previously established by the PARC, in every case ensuring that
areas where there are cultural communities, the latter shall support services are available or have been programmed before
likewise have one (1) representative. actual distribution is effected. (As amended by R. A. 7905)

The PARCCOM shall coordinate and monitor the implementation of SEC. 46 . Barangay Agrarian Reform Committee (BARC). - Unless
the CARP in the province. It shall provide information on the otherwise provided in this Act, the provisions of Executive Order
provisions of the CARP, guidelines issued by the PARC and on the No. 229 regarding the organization of the Barangay Agrarian
progress of the CARP in the province. In addition, it shall: Reform Committee (BARC) shall be in effect.

(a) Recommend to the PARC the following :

SEC. 47. Functions of the BARC. - In addition to those provided in SEC. 50. Quasi-Judicial Powers of the DAR. - The DAR is hereby
Executive Order No. 229, the BARC shall have the following vested with primary jurisdiction to determine and adjudicate
function: agrarian reform matters and shall have exclusive original
jurisdiction over all matters involving the implementation of
(a) Mediate and conciliate between parties involved in an agrarian reform, except those falling under the exclusive
agrarian dispute including matters related to tenurial and jurisdiction of the Department of Agricultural (DA) and the
financial arrangements; Department of Environment and Natural Resources (DENR).
(b) Assist in the identification of qualified beneficiaries and
landowners within the barangay; It shall not be bound by technical rules of procedure and evidence
(c) Attest to the accuracy of the initial parcellary mapping of but shall proceed to hear and decide all cases, disputes or
the beneficiary's tillage; controversies in a most expeditious manner, employing all
(d) Assist qualified beneficiaries in obtaining credit from reasonable means to ascertain the facts of every case in
lending institutions; accordance with equity and the merits of the case. Toward this
(e) Assist in the initial determination of the value of the end, it shall adopt a uniform rule of procedure to achieve a just,
land; expeditious and inexpensive determination of every action or
(f) Assist the DAR representative in the preparation of proceeding before it.
periodic reports on the CARP implementation for submission
to the DAR; It shall have the power to summon witnesses, administer oaths,
(g) Coordinate the delivery of support services to take testimony, require submission of reports, compel the
beneficiaries; and production of books and documents and answers to interrogatories
(h) Perform such other functions as may be assigned by the and issue subpoena, and subpoena duces tecum and to enforce its
DAR . writs through sheriffs or other duly deputized officers. It shall
(2) The BARC shall endeavor to mediate, conciliate and settle likewise have the power to punish direct and indirect contempt in
agrarian disputes lodged before it within thirty (30) days from its the same manner and subject to the same penalties as provided in
taking cognizance thereof. If after the lapse of the thirty day period, the Rules of Court .
it is unable to settle the dispute, it shall issue a certification of its
proceedings and shall furnish a copy thereof upon the parties Representatives of farmer leaders shall be allowed to represent
within seven (7) days from the expiration of the thirty days period. themselves, their fellow farmers or their organizations in any
proceedings before the DAR: Provided, however, that when there
SEC. 48. Legal Assistance. - The BARC or any member thereof may, are two or more representatives for any individual or group, the
whenever necessary in the exercise of any of its functions representatives should choose only one among themselves to
hereunder, seek the legal assistance of the DAR and the provincial, represent such party or group before any DAR proceedings.chan
city, or municipal government. robles virtual law library

SEC. 49. Rules and Regulations. - The PARC and the DAR shall have Notwithstanding an appeal to the Court of Appeals, the decision of
the power to issue rules and regulations, whether substantive or the DAR shall be immediately executory.
procedural, to carry out the objects and purposes of this Act. Said
rules shall take effect ten (10) days after publication in two (2) SEC. 51. Finality of Determination. - Any case or controversy before
national newspapers of general circulation. it shall be decided within thirty (30) days after it is submitted for
resolution. Only one (1) motion for consideration shall be allowed.
Any order, ruling or decision shall be final after the lapse of fifteen
(15) days from receipt of a copy thereof.
CHAPTER XII
ADMINISTRATIVE ADJUDICATION SEC. 52. Frivolous Appeals. - To discourage frivolous or dilatory
appeals from the decisions or orders on the local or provincial
levels, the DAR may impose reasonable penalties, including but not cases or whose presiding judges were former judges of the defunct
limited to, fines or censures upon erring parties. Court of Agrarian Relations.

SEC. 53. Certification of BARC. - The DAR shall not take cognizance The Regional Trial Court (RTC) judges assigned to said courts shall
of any agrarian dispute or controversy unless a certification from exercise said special jurisdiction in addition to the regular
the BARC that the dispute has been submitted to it for mediation jurisdiction of their respective courts.
and conciliation without any success of settlement is
presented: Provided, however, that if no certification is issued by The Special Agrarian Courts shall have the power and prerogatives
the BARC within thirty (30) days after a matter or issue is inherent in or belonging to the Regional Trial Courts.
submitted to it for mediation or conciliation, the case or dispute
may be brought before the PARC. SEC. 57. Special Jurisdiction . - The Special Agrarian Courts shall
have original and exclusive jurisdiction over all petitions for the
determination of just compensation to landowners, and the
prosecution of all criminal offenses under this Act. The Rules of
CHAPTER XIII Court shall apply to all proceedings before the Special Agrarian
JUDICIAL REVIEW Courts unless modified by this Act.

SEC. 54. Certiorari. - Any decision, order, award or ruling of the DAR The Special Agrarian Courts shall decide all appropriate cases
on any agrarian dispute or on any matter pertaining to the under their special jurisdiction within thirty (30) days from
application, implementation, enforcement, or interpretation of this submission of the case for decision.
Act and other pertinent laws on agrarian reform may be brought to
the Court of Appeals by certiorari except as otherwise provided in SEC. 58. Appointment of Commissioners. - The Special Agrarian
this Act within fifteen (15) days from receipt of a copy thereof. Courts, upon their own initiative or at the instance of any of the
parties, may appoint one or more commissioners to examine,
The findings of fact of the DAR shall be final and conclusive if based investigate and ascertain facts relevant to the dispute, including
on substantial evidence. the valuation of properties, and to file a written report thereof with
the court.
SEC . 55. No Restraining Order or Preliminary Injunction.- No court
in the Philippines shall have jurisdiction to issue any restraining SEC. 59. Orders of the Special Agrarian Courts. - No order of the
order or writ of preliminary injunction against PARC or any of its Special Agrarian Courts on any issue, question, matter or incident
duly authorized or designated agencies in any case, dispute or raised before them shall be elevated to the appellate courts until
controversy arising from, necessary to, or in connection with the the hearing shall have been terminated and the case decided on
application, implementation, enforcement, or interpretation of this the merits.
Act and other pertinent laws on agrarian reform.
SEC. 60. Appeals.- An appeal may be taken from the decision of the
SEC. 56. Special Agrarian Court. - The supreme Court shall Special Agrarian Courts by filing a petition for review with the Court
designate at least one (1) branch of the Regional Trial Court (RTC) of Appeals fifteen (15) days from receipt of notice of the decision;
within each province to act as a Special Agrarian Court. otherwise, the decision shall become final.

The Supreme Court may designate more branches to constitution An appeal from the decision of the Court of Appeals, or from any
such additional Special Agrarian Courts as may be necessary to order, ruling or decision of DAR, as the case may be, shall be by a
cope with the number of agrarian cases in each province. In the petition for review with the Supreme Court within a non-extendible
designation, the Supreme Court shall give preference to the period of fifteen (15) days from receipt of a copy of said decision.
Regional Trial Courts which have been assigned to handle agrarian
SEC. 61. Procedure on Review. - Review by the Court of Appeals or production credits, infrastructures, and other support services
the Supreme Court, as the case may be, shall be governed by the required by this Act;
Rules of Court. The Court of Appeals, however, may require the
parties to file simultaneous memoranda within a period of fifteen (e) Other government funds not otherwise appropriated.chan
(15) days from notice, after which the case is deemed submitted robles virtual law library
for decision.
All funds appropriated to implement the provisions of this Act shall
SEC. 62. Preferential Attention in Courts. - All courts in the be considered continuing appropriations during the period of its
Philippines, both trial and appellate, are hereby enjoined to give implementation.
preferential attention to all cases arising from or in connection with
the implementation of the provisions of this Act. SEC. 64. Financial Intermediary for the CARP. - The Land Bank of
the Philippines shall be the financial intermediary for the CARP, and
All cases pending in court arising from or in connection with the shall insure that the social justice objectives of the CARP shall enjoy
implementation of this Act shall continue to be heard, tried and a preference among its priorities.
decided into their finality, notwithstanding the expiration of the
ten-year period mentioned in Section 5 hereof.

CHAPTER XV
GENERAL PROVISIONS
CHAPTER XIV
FINANCING SEC. 65. Conversion of Lands . - After the lapse of five (5) years
from its award, when the land ceases to be economically feasible
SEC. 63. Funding Source.- The initial amount needed to implement and sound for agricultural purposes, or the locality has become
this Act for the period of ten (10) years upon approval hereof shall urbanized and the land will have greater economic value for
be funded from the Agrarian Reform Fund created under Sections residential, commercial or industrial purposes, the DAR, upon
20 and 21 of Executive Order No. 229.Additional amounts are application of the beneficiary or the landowner, with due notice to
hereby authorized to be appropriated as and when needed to the affected parties, and subject to existing laws, may authorize
augment the Agrarian Reform Fund in order to fully implement the the reclassification or conversion of the land and its
provisions of this Act. disposition:Provided, That the beneficiary shall have fully paid his
obligation.
Sources of funding or appropriations shall include the following:
SEC. 65-A Conversion into Fishpond and Prawn Farms. - No
(a) Proceeds of the sales of the Assets Privatization Trust; conversion of public agricultural lands into fishponds and prawn
farms shall be made except in situations where the provincial
(b) All receipts from assets recovered and from sale of ill-gotten government with the concurrence of the Bureau of Fisheries and
wealth recovered through the Presidential Commission on Good Aquatic Resources (BFAR) declares a coastal zone as suitable for
Government; fishpond development. In such case, the Department of
Environment and Natural Resources (DENR) shall allow the lease
(c) Proceeds of the disposition of the properties of the and development of such areas: Provided, That the declaration
Government in foreign countries; shall not apply to environmentally critical projects and areas as
contained in Title (A) sub-paragraph two, (B-5) and (C) and Title (B),
number eleven (11) of Proclamation No. 2146, entitled "Proclaiming
(d) Portion of amounts accruing to the Philippines from all Certain Areas and Types of Projects as Environmentally Critical and
sources or official foreign aid grants and concessional financing Within the the Scope of the Environmental Impact Statement (EIS)
from all countries, to be used for the specific purposes of financing System Established under Presidential Decree No. 1586", to ensure
the protection of river systems, aquifers and mangrove vegetations sea, sufficient to protect the environment, shall be established as a
from pollution and environmental degradation: Provided, buffer zone and be planted to specified mangrove species to be
further, That the approval shall be in accordance with a set of determined in consultation with the regional office of the DENR.
guidelines to be drawn up and promulgated by the DAR and the The Secretary of Environment and Natural Resources shall provide
BFAR: Provided, furthermore, That small-farmer cooperatives and the penalties for any violation of this undertaking as well as the
organizations shall be given preference in the award of the rules for its implementation. (As added by R. A. 7881)
Fishpond Lease Agreements (FLAs).
SEC. 65-D. Change of Crops. -The change of crops to commercial
No conversion of more than five (5) hectares of private lands to crops or high value crops shall not be considered as a conversion in
fishponds and prawn farms shall be allowed after the passage of the use or nature of the land. The change in crop should, however,
this Act, except when the use of the land is more economically not prejudice the rights of tenants or leaseholders should there be
feasible and sound for fishpond and/or prawn farm, as certified by any and the consent of a simple and absolute majority of the
the Bureau of Fisheries and Aquatic Resources (BFAR) , and a affected farm workers, if any, shall first be obtained. (As added by
simple and absolute majority of the regular farm workers or tenants R. A. 7881)
agree to the conversion. The Department of Agrarian Reform may
approve applications for change in the use of the land: Provided, SEC. 66. Exemptions from Taxes and Fees of Land Transfers.
finally, That no piecemeal conversion to circumvent the provisions - Transactions under this Act involving a transfer of ownership,
of this Act shall be allowed. In these cases where the change of use whether form natural or juridical persons, shall be exempted form
is approved, the provisions of Section 32-A hereof on incentives taxes arising from capital gains. These transactions shall also be
shall apply. (As added by R. A. 7881) exempted from the payment of registration fees, and all other
taxes and fees for the conveyance or transfer
SEC. 65-B. Inventory. - Within one (1) year from the effectivity of thereof: Provided, That all arrearages in real property taxes,
this Act, the BFAR shall undertake and finish an inventory of all without penalty or interest, shall be deductible from the
government and private fishponds and prawn farms and undertake compensation to which the owner may be entitled.
a program to promote the sustainable management and utilization
of prawn farms and fishponds. No lease under Section 65-A hereof SEC. 67. Free Registration of Patents and Titles. - All Registers of
may be granted until after the completion of the said inventory. Deeds are hereby directed to register, free from payment of all fees
and other charges, patents, titles and documents required for the
The sustainable management and utilization of prawn farms and implementation of the CARP.
fishponds shall be in accordance with the efflue standards, pollution
charges and other pollution control measures such as, but not SEC. 68. Immunity of Government Agencies from Undue
limited to, the quantity of fertilizers, pesticides and other chemicals Interference. - No injunction, restraining order, prohibition or
used that may be established by the Fertilizer and Pesticide mandamus shall be issued by the lower courts against the
Authority (FPA), the Environment Management Bureau (EMB), and Departments of Agrarian Reform (DAR), Department of Agriculture
other appropriate government regulatory bodies, and existing (DA), the Department of Environment and Natural Resources
regulations governing water utilization, primarily Presidential (DENR), and the Department of Justice (DOJ) in their
Decree No. 1067, entitled "A Decree Instituting a Water Code, implementation of the Program.
Thereby Revising and Consolidating the Laws Governing the
Ownership, Appropriation, Utilization, Exploitation, Development, SEC. 69. Assistance of Other Government Entities.- The PARC, in
Conservation and Protection of Water Resources." (As added by R. the exercise of its functions, is hereby authorized to call upon the
A. 7881) assistance and support of other government agencies, bureaus and
offices, including government-owned and controlled corporations.
SEC. 65-C. Protection of Mangrove Areas. - In existing Fishpond
Lease Agreement (FlAs) and those that will be issued after the SEC. 70. Disposition of Private Agricultural Lands. - The sale or
effectivity of this Act, a portion of the fishpond area fronting the disposition of agricultural lands retained by a landowner as a
consequence of Section 6 hereof shall be valid as long as the total (b) The forcible entry or illegal detainer by persons who are not
landholdings that shall be owned by the transferee thereof qualified beneficiaries under this Act to avail themselves of the
inclusive of the land to be acquired shall not exceed the rights and benefits of the Agrarian Reform Program;
landholdings ceilings provided for in this Act. Any sale or
disposition of agricultural lands after the effectivity of this Act (c) The conversion by any landowner of his agricultural land into
found to be contrary to the provisions hereof shall be null and void. non-agricultural use with intent to avoid the application of this Act
Transferees of agricultural lands shall furnish the appropriate to his landholdings and to dispossess his tenant farmers or the land
Register of Deeds and the BARC with an affidavit attesting that his tilled by them;
total landholdings as a result of the said acquisition do not exceed
the landholding ceiling. The Register of Deeds shall not register the (d) The willful prevention or obstruction by any person,
transfer of any agricultural land without the submission of this association or entity of the implementation of the CARP;
sworn statement together with proof of service of a copy thereof to
the BARC.
(e) The sale, transfer, conveyance or change of the nature of
lands outside of urban centers and city limits either in whole or in
SEC. 71. Bank Mortgages. - Banks and other financial institutions part after the effectivity of this Act. The date of the registration of
allowed by law to hold mortgage rights or security interests in the deed of conveyance in the Register of Deeds with respect to
agricultural lands to secure loans and other obligations of titled lands and the date of the issuance of the tax declaration to
borrowers, may acquire title to these mortgaged properties, the transferee of the property with respect to unregistered lands,
regardless of area, subject to existing laws on compulsory transfer as the case may be, shall be conclusive for the purpose of this Act;
of foreclosed assets and acquisition as prescribed under Section 16
of this Act.
(f) The sale, transfer or conveyance by a beneficiary of the right
to use or any other usufructuary right over the land he acquired by
SEC. 72 . Leases, Management, Grower or Services Contracts, virtue of being a beneficiary, in order to circumvent the provisions
Mortgages and Other Claims. - Lands covered by this Act under of this Act.
lease, management, grower or service contracts, and the like shall
be disposed of as follows:
SEC. 73-A. Exception. - The provisions of Section 73, paragraph (e)
to the contrary notwithstanding, the sale and/or transfer of
(a) Lease, management, grower or service contracts covering agricultural land in cases where such sale, transfer or conveyance
private lands may continue under their original terms and is made necessary as a result of a bank's foreclosure of the
conditions until the expiration of the same even if such land has, in mortgaged land is hereby permitted.( As added by R. A. 7881)
the meantime, been transferred to qualified beneficiaries.
SEC. 74 . Penalties. - Any person who knowingly or willfully violates
(b) Mortgages and other claims registered with the Register of the provisions of this Act shall be punished by imprisonment of not
Deeds will be assumed by the government up to an amount less than one (1) month to not more than three (3) years or a fine
equivalent to the landowner's compensation value as provided in of not less than one thousand pesos (P1,000.00) and not more than
this Act. fifteen thousand pesos (P15,000.00), or both, at the discretion of
the court. If the offender is a corporation or association, the officer
SEC. 73. Prohibited Acts and Omissions. - The following are responsible therefor shall be criminally liable
prohibited:
SEC. 75. Suppletory Application of Existing Legislation. - The
(a) The ownership or possession, for the purpose of provisions of Republic Act Number 3844, as amended, Presidential
circumventing the provisions of this Act, of agricultural lands in Decree Numbers 27 and 266 as amended, Executive Order
excess of the total retention limits or award ceilings by any person, Numbers 228 and 229, both Series of 1987, and other laws not
natural or juridical, except those under collective ownership by inconsistent with this Act shall have suppletory effect.
farmer-beneficiaries.
SEC. 76. Repealing Clause. - Section 35 of Republic Act Number
3844, Presidential Decree Number 316, the last two paragraphs of
Section 12 of Presidential Decree Number 1038, and all other laws,
decrees, executive orders, rules and regulations, issuances or parts
thereof inconsistent with this Act are hereby repealed or amended
accordingly.

SEC. 77. Separability Clause. - If, for any reason, any section or
provision of this Act is declared null and void, no other section,
provision or part thereof shall be affected and the same shall
remain in full force and effect.

SEC. 78. Effectivity Clause. - This Act Shall take effect immediately
after publication in at least two (2) national newspapers of general
circulation.
Approved: June 10, 1988