Milestone Farms Inc. v.

Office of the President

G.R. No. 182332, Febrar! 21, 2"11
F#$%&'
Petitioner Milestone Farms, Inc. ()etitioner* +as incor)orated +ith the &ecrities and ,-chan.e
$ommission on /anar! 8, 101". #mon. its )ertinent secondar! )r)oses are' (1* to en.a.e in the
raisin. of cattle, )i.s, and other livestoc23 to ac4ire lands b! )rchase or lease, +hich ma! be needed
for this )r)ose3 and to sell and other+ise dis)ose of said cattle, )i.s, and other livestoc2 and their
)rodce +hen advisable and beneficial to the cor)oration3 (2* to breed, raise, and sell )oltr!3 to
)rchase or ac4ire and sell, or other+ise dis)ose of the s))lies, stoc2s, e4i)ment, accessories,
a))rtenances, )rodcts, and b!5)rodcts of said bsiness3 and (3* to im)ort cattle, )i.s, and other
livestoc2, and animal food necessar! for the raisin. of said cattle, )i.s, and other livestoc2 as ma! be
athori6ed b! la+.

On /ne 1", 1088, a ne+ a.rarian reform la+, Re)blic #ct (R.#.* No. 1178, other+ise 2no+n as the
$om)rehensive #.rarian Reform 9a+ ($#R9*, too2 effect, +hich inclded the raisin. of livestoc2, )oltr!,
and s+ine in its covera.e. :o+ever, on ;ecember <, 100", this $ort, sittin. en banc, rled in 96 Farms
v. &ecretar! of the ;e)artment of #.rarian Reform that a.ricltral lands devoted to livestoc2, )oltr!,
and=or s+ine raisin. are e-clded from the $om)rehensive #.rarian Reform Pro.ram ($#RP*.
Mean+hile, on ;ecember 28, 1003, the ;e)artment of #.rarian Reform (;#R* issed #dministrative
Order No. 0, &eries of 1003 (;#R #.O. No. 0*, settin. forth rles and re.lations to .overn the e-clsion
of a.ricltral lands sed for livestoc2, )oltr!, and s+ine raisin. from $#RP covera.e.
%he 9>$,$, ths, recommended the e-em)tion of )etitioner?s 311."<225hectare )ro)ert! from the
covera.e of $#RP. he &othern Pin.a! Farmers Mlti5Pr)ose $oo)erative, Inc. (Pin.a! Farmers*,
re)resented b! %imiano @alaAadia, &r. (@alaAadia*, moved for the reconsideration of the said Order, bt
the same +as denied b! ;irector ;al.d. in his Order. In the meantime, R.#. No. 1178 +as amended
b! R.#. No. 8881, +hich +as a))roved on Febrar! 2", 1007. Private a.ricltral lands devoted to
livestoc2, )oltr!, and s+ine raisin. +ere e-clded from the covera.e of the $#R9.
On #)ril 20, 2""7, the $# fond that, based on the docmentar! evidence )resented, the )ro)ert!
sbAect of the a))lication for e-clsion had more than satisfied the animal5land and infrastrctre5animal
ratios nder ;#R #.O. No. 0. %he $# also fond that )etitioner a))lied for e-clsion lon. before the
effectivit! of ;#R #.O. No. 0, ths, ne.atin. the claim that )etitioner merel! converted the )ro)ert! for
livestoc2, )oltr!, and s+ine raisin. in order to e-clde it from $#RP covera.e. Petitioner +as held to
have actall! en.a.ed in the said bsiness on the )ro)ert! even before /ne 17, 1088.
I&&>,' BON the ;#R has the )o+er to re.late livestoc2 farms +hich have been e-em)ted b! the
$onstittion from the covera.e of a.rarian reform.
:,9;' No.
%he instant case does not rest on facts )arallel to those of Sutton becase, in Sutton, the sbAect )ro)ert!
remained a livestoc2 farm.
It is established that isses of ,-clsion and=or ,-em)tion are characteri6ed as #.rarian 9a+
Im)lementation (#9I* cases +hich are +ell +ithin the ;#R &ecretar!?s com)etence and Arisdiction.
&ection 3, Rle II of the 2""3 ;e)artment of #.rarian Reform #dAdication @oard Rles of Procedre
)rovides'
&ection 3. Agrarian Law Implementation Cases.
%he #dAdicator or the @oard shall have no Arisdiction over matters
involvin. the administrative im)lementation of R# No. 1178, other+ise 2no+n as the
$om)rehensive #.rarian Reform 9a+ ($#R9* of 1088 and other a.rarian la+s as
ennciated b! )ertinent rles and administrative orders, +hich shall be nder the
e-clsive )rero.ative of and co.ni6able b! the Office of the &ecretar! of the ;#R in
accordance +ith his issances, to +it'

3.8 ,-clsion from $#RP covera.e of a.ricltral land sed for livestoc2, s+ine, and )oltr! raisin..
%hs, +e cannot, +ithot .oin. a.ainst the la+, arbitraril! stri) the ;#R &ecretar! of his le.al mandate to
e-ercise Arisdiction and athorit! over all #9I cases. %o sccmb to )etitioner?s contention that Cwhen a
land is declared exempt from the CARP on the ground that it is not agricultural as of the time the CARL
took effect, the use and disposition of that land is entirely and forever eyond !AR"s #urisdictionD is
dan.eros, s..estive of self5re.lation. Precisel!, it is the ;#R &ecretar! +ho is vested +ith sch
Arisdiction and athorit! to e-em)t and=or e-clde a )ro)ert! from $#RP covera.e based on the factal
circmstances of each case and in accordance +ith la+ and a))licable Aris)rdence. In addition, albeit
)arentheticall!, &ecretar! Eilla had alread! .ranted the conversion into residential and .olf corses se of
nearl! one5half of the entire area ori.inall! claimed as e-em)t from $#RP covera.e becase it +as
alle.edl! devoted to livestoc2 )rodction.