Management of Irrigation System

• When constructed & operated by the

government. Lessees shall allocate not more
than 25% of their rental collection tp the
government.
• Irrigation system installed/constructed at
expense of landowner or agricultural lessor-
shall be initiated by DAR to be financed by
Land Bank.
 Lease of Ricelands and Lands Devoted to
Other Crops
• Section 34 of Chapter 1 of R.A No. 3844
• 25% of the average normal harvest – shall be
the amount of rental for ricelands or
estimated normal harvest during the three (3)
agricultural years immediately preceding the
establishment of the leasehold after deducting
the expenses for seeds, cost of harvesting,
threshing, loading, hauling and processing
 Lease of Ricelands and Lands Devoted to
Other Crops
• Average normal harvest for three (3)
preceding years
• No agreement as to rental – the court (now
DAR) shall fix a provisional rental until fixed
rental is determined within (30) days from
submission of the case for decision.
 Amortization Payment for Land under
Leasehold
• The rentals paid by the lessee to the lessor at
the place agreed upon by the parties shall be
credited as amortization payments for the
purchase price of the landholding titled by the
leasee:
A. When the landholding is expropriated by the
government
B. When it is redeemed.
 Amortization Payment for Land under
Leasehold
• Whatever balance remaining after crediting as
amortization the rental paid, the same may be
finances by the Land Bank in the same ratio
and mode of payment provided under Section
80 of the Code.
 Amortization Payment for Land under
Leasehold
• The lender shall immediately notify the Land
Bank and the DAR so that appropriate steps
shall be taken by these agencies:
a) to answer for the default in case the failure is
due to fortuitous event
b) to take over the ownership and
administration of the landholding.
 Amortization Payment for Land under
Leasehold
• The default is attributable to the lessee, the
DAR shall substitutethe defaulting
amortization owner.
• If it’s fortuitous event, the LBP shall assume
the payment of the balance and the farmer
shall be released from his obligation.
 Amortization Payment for Land under
Leasehold
• Purchase payment of the landholding in favor
of the agricultural lessee may consist of:
1. Cash payment
2. Balance payable in LBP bonds
 Amortization Payment for Land under
Leasehold
• Amortizing owners whose lands have been
surveyed: May avail of the assistance of the Land
Registration Commission and the Bureau of Lands
• Certificate of title:
- Amortizing owner may avail of loans from private
lending institutions
- Amortizing owner can borrow up to not less than
60% of the fair market value of the property.
 Default of lessee
• a) Violation of the provisions Section 13 and
27 of paragraph one, of section 31.
• b) Any person, natural or juridical who induces
another, as tenant, to execute or to enter into
a share tenancy contract with himself or
another is in violation of this code.
• c) Any person who violates the provisions of
section 40, 41 and 42 of this code.
 Period of Prescription

• An action to enforce any cause of action

accruing under this Code (R.A. No. 3844) shall
be brought within the period of three (3)
years.