Law

Promulgation

Coverage

Issues
lessor:
REPUBLIC ACT NO. 3844
xxx
(2) To propose a change in the
AN ACT TO ORDAIN THE
AGRICULTURAL LAND
use of the landholding to
REFORM CODE AND TO
other agricultural purposes, or
INSTITUTE LAND
in the kind of crops to be
REFORMS IN THE
planted: Provided, That in
Agricultural Shared
case of disagreement as to
PHILIPPINES, INCLUDING
Tenancy System was
THE ABOLITION OF
the proposed change, the
August 8, 1963
abolished and changed to
TENANCY AND THE
same shall be settled by the
Agricultural Leasehold
CHANNELING OF CAPITAL
Court according to the best
System.
INTO INDUSTRY, PROVIDE
interest of the parties
concerned: x x x;
FOR THE NECESSARY
IMPLEMENTING
AGENCIES, APPROPRIATE
This right should have been
granted to the Agricultural
FUNDS THEREFOR AND
FOR OTHER PURPOSES
Lessee. Being the one directly
working on the farm, the
DECREEING THE
Private agricultural lands
EMANCIPATION OF
primarily devoted to rice Computation of just
TENANTS FROM THE
and corn under a system compensation results to a
BONDAGE OF THE SOIL,
October 21, 1972
of sharecrop or leasevery low valuation due to the
TRANSFERRING TO THEM
tenancy, whether
provided formula under the
THE OWNERSHIP OF THE
classified as landed
law.
LAND THEY TILL AND
estate or not
PROVIDING
THE
DECLARING
FULL
LAND
by the original landownersOWNERSHIP TO
payee or by their heirs, are
QUALIFIED FARMER
deemed matured up to oneBENEFICIARIES COVERED
twenty fifth (1/25) of their
BY PRESIDENTIAL
yearly face value from their
DECREE NO. 27:
date of issue x x x.
DETERMINING THE VALUE
Private agricultural lands
OF REMAINING
July 17, 1987primarily devoted to rice 1/25th of their yearly value is
UNVALUED RICE AND
a very low value. It cannot be
and corn.
CORN LANDS SUBJECT
denied that farming entails
TO P.D. NO. 27; AND
expenses. One has to cull out
PROVIDING FOR THE
a huge capital in order to gain
MANNER OF PAYMENT BY
a better harvest Most of the
THE FARMER
farmers rely on the value of
BENEFICIARY AND MODE
their matured bonds to help

Valuation Formula

N/A

Value of the land shall

be equivalent to two
and one-half (2 1/2)
times the average
harvest of three normal
crop years immediately
preceding the
promulgation of this
Decree
production/hectare
X
2.5) X Thirty Five Pesos
(P35.00), the
government support
price for one cavan of
palay on October 21,
1972
Corn:
(Average gross
production/hectare X
2.5) X Thirty One Pesos
(P31.00), the
government support
price for one cavan of

Retention Limits Modes of Acquisition

The agricultural
leasehold relation once
established shall confer
upon the agricultural
lessee the right to
continue working on the
landholding until such
leasehold relation is
extinguished. The
agricultural lessee shall
be entitled to security of
tenure on his
landholding and cannot
be ejected therefrom
unless authorized by the
Court for causes herein
provided.

The agricultural
leasehold
relation shall be
limited to the
person who
furnishes the
landholding,
either as owner,
civil law lessee,
usufructuary, or
legal possessor,
and the person
who personally
cultivates the
same.

Landowner may retain

an area of not more than
seven (7) hectares if
Sharecrop or lease-tenancy
such landowner is
cultivating such area or
will now cultivate it.

All qualified farmer

beneficiaries are now
deemed full owners as
of October 21, 1972 of
the land they acquired
by virtue of Presidential
Decree No. 27.

Pursuant to PD 27

Law

Promulgation
Coverage
Regardless
of tenurial
arrangement and
EXECUTIVE ORDER NO.
commodity produced, all
public and private
229
PROVIDING THE
agricultural lands as
MECHANISMS FOR THE
provided in Proclamation
July 22, 1987
No. 131 dated July 22,
IMPLEMENTATION OF THE
COMPREHENSIVE
1987, including whenever
AGRARIAN REFORM
applicable in accordance
PROGRAM
with law, other lands of
the public domain
AN ACT INSTITUTING A
suitable to agriculture.
COMPREHENSIVE
All public and private
AGRARIAN REFORM
PROGRAM TO PROMOTE
agricultural lands.
Other lands of public
SOCIAL JUSTICE AND June 15, 1988
INDUSTRIALIZATION,
domain suitable for
PROVIDING THE
agriculture.
MECHANISM FOR ITS
REPUBLIC
ACT NO. 9700
IMPLEMENTATION,
AND
AN ACT
STRENGTHENING THE
COMPREHENSIVE
AGRARIAN REFORM
PROGRAM (CARP),
"Regardless of tenurial
EXTENDING THE
arrangement and
ACQUISITION AND
commodity produced, all
DISTRIBUTION OF ALL
public and private
AGRICULTURAL LANDS,
agricultural lands as
INSTITUTING NECESSARY
August 7, 2009
provided in Proclamation
REFORMS, AMENDING
No. 131 and Executive
FOR THE PURPOSE
Order No. 229, including
CERTAIN PROVISIONS OF
other lands of the public
REPUBLIC ACT NO. 6657,
domain suitable for
OTHERWISE KNOWN AS
agriculture.
THE COMPREHENSIVE
AGRARIAN REFORM LAW
OF 1988, AS AMENDED,
AND APPROPRIATING
FUNDS THEREFOR

Issues
Proclamation No. 131 dated
July 22, 1987, a special fund is
created, known as The
Agrarian Reform Fund, an
initial amount of FIFTY
BILLION PESOS (P50 billion) to
cover the estimated cost of
the CARP from 1987 to 1992 x
xx
The funding for the said
Lack of sustainability. Land,
once awarded, were often
taken for granted. Some
farmer beneficiaries were not
educated on the benefit of the
land awarded to them. Hence,
they were not able to

Limits the implementation of

the provisions of RA 6657, as
amended, to landholdings
with pending case and/or
proceeding as June 30, 2014.

Valuation Formula

Based on the owner's

declaration of current
fair market value as
provided in Section 4
hereof, but subject to
certain controls

Retention Limits Modes of Acquisition

Compulsory
Acquisition
N/A

CNI X 0.60 + CS X 0.30 regime is a separation of

+ MV X 0.10 = Land
property; if community
Value
of gains, 5 hectares for
CS X 0.90 + MV X 0.10 both spouses. For
= Land Value
children, as preferred
CNI X 0.90 + MV X 0.10 beneficiaries, 3 hectares
= Land Value
each provided that they
"the
acquisition
MV Xcost
2 = of
Land
Value
are 15 years of age and
of the land, the value
of the standing crop,
the current value of
like properties, its
5 hectares for each
nature, actual use and
spouse if property
income, the sworn
regime is a separation of
valuation by the owner,
property; if community
the tax declarations,
of gains, 5 hectares for
the assessment made
both spouses. For
by government
children, as preferred
assessors, and seventy
beneficiaries, 3 hectares
percent (70%) of the
each provided that they
zonal valuation of the
are 15 years of age and
Bureau of Internal
actually tilling or
Revenue (BIR),
managing the land.
translated into a basic
formula by the DAR
shall be considered,
subject to the final
decision of the proper
court."
CNI - Capitalized Net Income
CS - Comparable Sales
MV - Market Value

Voluntary Land
Transfer
Voluntary Offer
to Sell
Compulsory
Acquisition
Direct Payment
Scheme
Voluntary Offer
to Sell

Compulsory
Acquisition
Voluntary Offer
to Sell