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Comprehensive Agrarian Reform Program

(Republic Act 6657)

Declaration Of Principles
1. The welfare of landless farmers and farm workers will receive the highest consideration to promote social justice and to move the nation toward sound rural development and industrialization and establishment of owner-cultivatorship of economicsized farms as basis of Philippine Agriculture. 2. State shall encourage formation and maintenance of economic-sized farms to be constituted by individual beneficiaries and small landowners.


3. State shall be guided by the principles that land has a social function and land ownership has social responsibility. 4. State may lease undeveloped lands of public domain to qualified entities for the development of capital-intensive farms and traditional and pioneering crops especially those for exports subject to prior rights of beneficiaries.

Key Objectives of CARP

Equity the ability of the of the beneficiaries to directly participate in nation building through equal land ownership structure Capability- it allows the tenant-beneficiaries to manage reformed lands productively by giving them the support services that they need Sustainability- it incorporates the ecosystem and stakeholder approaches to land use and management

Definition of Terms
1. AGRARIAN REFORM * Redistribution of lands regardless of crops or fruits produced to farmers and regular farmworkers who are landless, irrespective of tenurial arrangement, to include the totality of factors and support services designed to lift economic status of the beneficiaries 2. AGRICULTURE * Cultivation of soil, planting of crops, growing of fruit trees including harvesting of farm products and other farm activities and practices performed by a farmer 3. AGRICUTURAL LAND * Land devoted to agricultural activity and not classified as mineral, forest, residential, commercial or industrial

4. IDLE or ABANDONED LAND * Any agricultural land not cultivated, tilled or developed to produce any crop nor devoted to any economic purpose 5. FARMER * Natural person whose primary livelihood is cultivation of land or the production of agri. crops, either by himself or with the assistance of his immediate farm household, whether the land is owned by him or by another person 6. FARMWORKER * Natural person who renders service for value as an employee or laborer in an agricultural enterprise or farm 7. REGULAR FAMRWORKER * Natural person who is employed on a permanent basis by an agri. enterprise

8. SEASONAL FARMWORKER * Natural person who is employed on a recurrent , periodic of intermittent basis by an agri. Enterprise or farm 9. OTHER FARMWORKER * Farmworker who does not fall under the definition of farmworker, regular farmworker and seasonal farmworkers 10. COOPERATIVES * Organizations composed of small agri. Producers, farmers, farmworkers or other agrarian reform beneficiaries who voluntarily organize themselves for the purpose of polling land, human, technological, financial or other economic resources and operated on the principle of one member, one vote policy.

Coverage of CARP
1. In General, it
covers regardless of tenurial agreement and commodity produced, all public and private agricultural lands including other lands of public domain suitable for agriculture.

2. In Particular, it covers
a. all alienable & disposable lands of public domain devoted to or suitable for agriculture b. all lands of public domain including forest or mineral lands reclassified to agricultural land after approval of Act in excess of specific limits as determined by Congress taking into acct. ecological development and equity considerations c. all other lands owned by Government devoted to or suitable for agriculture. d. all private lands devoted to or suitable for agriculture regardless of agricultural products raised or that can be raised thereon

Schedule of Implementation

The distribution of all lands covered by this Act shall be implemented immediately and completed within ten years from effectivity there of (June 15, 1988)

WHO MAY APPLY FOR RETENTION: a. Any person, NATURAL or JURIDICAL who owns agricultural lands with an aggregate area of more then 5 hectares may apply for retention b. LO who exercised his right of retention under PD 27 may NO LONGER exercise same right under R.A 6657 c. LO who owns 5 hectares or less which are not yet subject of coverage based on the schedule of implementation may also file application for retention and a certificate of retention shall be issued in his favr

d. Right of retention of a deceased Lo may be exercised by his heirs provided that heirs must show proof that the decedent landowner had manifested during his lifetime his intention to exercise his right of retention prior to August 23, 1990 (finality of SC ruling in the
case of Small LOs in the Philippines Inc vs. The Honorable Secretary of Agrarian Reform)

PERIOD TO EXERCISE RIGHT OF RETENTION a. Any time before receipt of notice of coverage b. Under Compulsory Acquisition Scheme, LO shall exercise right of retention within 60 days from receipt of notice of coverage c. Under Voluntary Offer to Sell, Voluntary Land Transfer Lo shall exercise right of retention simultaneously at the time of offer for sale or transfer

WHERE TO FILE APPLICATION It must be filed with the office of the Regional Director or the Provincial Agrarian Reform Office (PARO), the receiving office shall forward the application to the MARO with jurisdiction over the landholding after assigning a docket number. WAIVER OF RIGHT OF RETENTION a. Failure to manifest intention to exercise his right to retain within 60 days from receipt of notice of coverage b. Failure to state intention upon offer to sell or application under VLT/Direct Payment Scheme

c. Execution of any document stating that he expressly waives his right to retain. The MARO and/or PARO and/or Regional Director shall attest to the dues execution of such document d. Execution of Landowner Tenant Production Agreement and Farmers Undertaking (LTPA-FU) or Application to Purchase and Farmers Undertaking (APFU) covering subject property e. Entering into VLT/DPS or VOS but failing to manifest an intention to exercise his right to retain upon filing of the application for VLT/DPS or VOS

f. Execution and submission of any document indicating that he is consenting to the CARP coverage of his entire landholding g. Performing any act constituting estoppel by laches which is the failure or neglect for an unreasonable length of time to do that which he may have done earlier by exercising due diligence, warranting a presumption that he abandoned his right ore declined to assert it

Requirements for Retention

a. Land must be private agricultural land b. Area chosen for retention shall be compact and contiguous and shall be at least prejudicial to the entire landholding and the majority of the farmers therein c. LO must execute an affidavit as to the aggregate area of his landholding in the entire Philippines d. LO must submit list of his children who are 15 years old or over as of June 15, 1988 and who have been actually cultivating the land or directly managing it since June 15, 1988 for identification as preferred beneficiaries as well as evidence of such

e. LO must execute an affidavit stating the : * name of all farmers, agricultural lessees and share tenants * name of regular farmworkers, seasonal farmworkers, other farmworkers * name of actual tillers or occupants and/or other persons directly working on the land * if there are no such persons, a sworn statement attesting to such fact

Retention Limits
GENERAL Rule: - Retention by landowners shall not exceed 5 hectares 3 hectares may be awarded to each child provided:
a. child is at least 15 years old b. child is actually tilling or directly managing the land

a. LO whose lands have been covered by P. D 27 shall be allowed to keep area originally retained by them there under b. Original homestead grantees or their direct compulsory heirs who still own original homestead at time of approval of this Act shall retain same area provided they continue to cultivate homestead

Right to Choose Area to be Retained

GENERAL Rule: Right to choose area to be retained which shall be compact and contiguous shall pertain to Landowner.

In case area selected for retention by LO is tenanted, tenant shall have the option to choose whether to remain or be beneficiary in same or another agricultural land with similar features. a. In case tenant chooses to remain in retained area, he shall be considered a leaseholder and shall lose his right to be beneficiary b. In case tenant chooses to be beneficiary in another agri. land , he loses right as leaseholder to lad retained by LO. Tenant must exercise this option within 1 year from time LO manifests his choice of area for retention

Responsibilities of the Municipal Agrarian Reform Office (MARO)

1. Determine whether or not original home stead grantees or their direct compulsory heir still own and actually cultivate the homestead land when applicable 2. Conduct field verification and investigation together with Lo or his authorized representative to determine the ff: a. Landholding of the LO in relation to application for retention b. Qualifications of the applicant and their children as their compulsory heirs

c. Tenants, farmworkers and/or actual occupants within subject landholding d. Other factors relevant to the application for retention 3. Notify all tenants, farmworkers and/or actual occupants of schedule of all conferences regarding said application 4. Identify and facilitate necessary land transfer for tenant opting to be beneficiaries in another landholding of same LO with similar features 5. Identify tenants opting to be leaseholders and facilitate the execution of he corresponding leasehold contracts

6. Preside over negotiations between the tenant/beneficiaries in the determination of disturbance compensation should the tenants/beneficiaries opt to accept the same from the LO 7. Prepare sketch plan of area to be retained by the LO in coordination with DENR 8. Prepare a Retention Folder indicating therein his findings and recommendations and submit the same with PARO 9. Identify primary agri. Areas owned by Los who waived their right to choose which area to retain or those who waived their right to exercise right of retention using the ff factors: * commodity produced, terrain, infrastructure available and soil fertility

Order of Priority
PHASE ONE a. rice & corn lands under P.D 27 b. all idle/abandoned lands c. all private lands voluntarily offered by owners for agrarian reform d. all and foreclosed by gov. financial institutions e. all lands acquired by PCGG f. all other lands owned by gov. devoted to or suitable for agri. Which shall be acquired and distributed immediately upon effectivity of this Act Implementation will be completed within a period of not more than 4 years


a. all alienable & disposable public agri. lands b. all arable public agri. lands under agro-forest, pasture and agri. Leases already cultivated and planted to crops in accordance with Sec. 6 Art. XIII of Constitution. c. all public agri.lands which are to be opened for new development and resettlement d. all private agri.lands in excess of 50 hectares insofar as the excess hectarage is concerned, to implement principally the right of farmers and regular farmworkers, who are landless, to own directly or indirectly the lands they till

All other private agr.lands commencing with large landholdings and proceeding to medium and small landholdings under the following schedule a. landholdings above 24 hectares up to 50, to begin on the 4th year from effectivity of this Act and to be completed within 3 years b. landholdings from retention limit up to 24 hectares, to begin on the 6th year from effectivity and to be completed within 4 years.

Lands held by MULTINATIONAL Corporations and Others

All lands of public domain leased, held or possessed by multinational corporations or associations and other lands owned by gov or by GOCCs, associations, institutions or entities devoted to existing & operational agribusiness or agro-industrial enterprises operated by multinational corporations shall be programmed for acquisition immediately upon effectivity of this Act with implementation to be completed within 3 years.

Commercial Farming
Definition: Private agri.lands devoted to agri. Including saltbeds, fruit farms, orchards, vegetable and cut-flower farms and cacao, coffee and rubber plantations Commencement of 10-year period: a. shall be subject to immediate compulsory acquisition and distribution after 10 years from effectivity of this Act b. in case of new farms, 10-year period shall begin from 1st year of commercial production and operation as determined by DAR

Qualifications of Beneficiaries for Commercial Farms

* Must be at least 18 years old * Must have the willingness, aptitude and ability to cultivate and make the land productive * Must be employed in commercial farm between June 15, 1988 and June 15, 1998 or upon expiration/termination of the deferment provided that farm workers who have worked longest land continuously shall be given priority

Grounds for Disqualification

(Commercial Farms Beneficiaries)
*Mandatory retirement *Optional retirement or resignation provided no case filed by farm worker or prospective beneficiary questioning such retirement or resignation *Dismissal for cause by final judgment as prescribed under labor laws *Waiver or refusal to be beneficiary *Violation of agrarian laws and regulations determined with finality after proper proceedings by appropriate tribunal or agency

Modes of Acquisition for Commercial Farms

Voluntary Offer to Sell (VOS)/Compulsory Acquisition Direct Payment Scheme

Ancestral Lands

2. 3.

Protection of rights of indigenous cultural communities Suspension of Implementation Enactment of Regional Laws

Exemptions and Exclusions


Lands actually, directly and exclusively used and found to be necessary for:
a. parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding ground,watersheds and mangroves b. national defense c. school sites and campuses including experimental farm stations operated by public or private schools for educational purposes and seeds and seedlings, research and pilot production centers d. church sites and convents appurtenant thereto, mosques sites and Islamic centers appurtenant thereto

Procedure for Compulsory Acquisition of private Lands

1. 2. 3. 4. 5.

6. 7.

Valuation of Land Notice from DAR to LO of offer to acquire land Acceptance or rejection by LO of Offer Payment in case of acceptance Determination of compensation in case of rejection Taking of possession and redistribution Appeal to Court

Qualified Beneficiaries
5. Actual tillers or 1. Qualified lessees occupants of public and share tenant lands 2. Regular farm 6. Collectives or workers cooperatives of 3. Seasonal farm above beneficiaries workers 4. Other farm workers 7. Others directly working on the land

Award Ceiling for Beneficiaries

Beneficiaries shall be awarded area NOT exceeding 3 hectares which may cover a contiguous tract of land or several parcels of land cumulated up to the prescribed award limits

Qualifications of Beneficiary
1. 2. 3.


Landless Filipino citizen Actual occupant/tiller who is at least 15 years old or head of family at time of filing of application Has willingness, ability and aptitude to cultivate and make land productive

Payment by Beneficiaries
Beneficiaries shall pay to Land Bank of the Philippines in 30 annual amortization at 6% interest per annum subject to the following rules: a. Payments for first 3 years after the award may be at reduced amounts as established by PRC b. First 5 annual amortizations may not be more than 5% of the value of the annual gross production as established by DAR c. Should the scheduled annual payments after the 5th year exceed 10% of the annual gross production and failure to produce accordingly is not due to the beneficiarys fault, LBP may reduce interest rate or reduce principal obligation to make repayment affordable LBP shall have a lien by way of mortgage on the land awarded to the beneficiary and this mortgage may be foreclosed by LBP for non-payment of an aggregate of 3 annual amortizations

a. b.

c. d. e.

f. g.

Cost of acquisition Current value of like properties Nature of property Actual Use and income Sworn valuation by the owner Tax declarations Assessment made by gov. assessors

Modes of Compensation
Cash payment a. lands above 50 hec. 25% cash balance to be paid in gov. financial instruments b. land above 24 hec.- 50 hec. 30% cash balance to be paid in gov. financial instruments c. lands 24 hec. and below 35% cash balance to be paid in gov. financial instruments Shares of Stock in GOCCs, LBP preferred shares, physical assets or other qualified investments Tax credits which can be used against any tax liability LBP bonds

Support Services
Functions of Support Services Office:
1. 2. 3. 4. 5. 6. 7.





Irrigation facilities Infrastructure development and public work projects Government subsidies for use of irrigation facilities Price support and guarantee for agricultural produce Credit (collateral-free loans) Financial assistance Agricultural extension workers to farmers organizations Research and dissemination of information on agrarian reform plants and crops Development of cooperative management skills through intensive training Assistance in identifying ready markets for agricultural produce Administration, operation and management and funding of support services programs

Support Services to Beneficiaries

1. 2.


4. 5.

Land surveys and titling Liberalized terms on credit facilities and production loans Extension services by way of planting, cropping production and post harvest technology transfer Infrastructure Research, production and use of organic fertilizers

Support Services to Landowners



3. 4.

Investment information, financial and counseling assistance Facilities, programs and schemes for conversion or exchange of bonds issued for payment of lands Marketing LBP bonds Other services designed to utilized productively proceeds of sale of lands for rural industrialization

Prohibited Acts and Omissions

1. 2.





Ownership or possession for purposes of circumventing the provisions of this Act Forcible entry or illegal detainer by persons who are not qualified beneficiaries Conversion by landowner of agri. Land to non-agri. Land Willful prevention or obstruction of the implementation of CARP Sale, transfer, conveyance or change of nature of lands outside urban centers and city limits Sale, transfer or conveyance by beneficiary

Any person knowingly or willfully violates provisions of this Act shall be: 1. Punished by imprisonment of not less than one month to not more than 3 years of 2. Fine of not less than 1,000 but not more than 15,000 3. If offender is corporation or association, officer responsible shall be criminally responsible

The greatest revolution of our generation is the discovery that human beings, by changing the inner attitudes of their minds, can change the outer aspects of their lives

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