Agrarian Reform

Land Reform in Philippine History

Pre-Spanish Period
Before the Spaniards came to the Philippines, Filipinos
lived in villages or barangays ruled by chiefs or datus.
The datus comprised the nobility. Then came the
maharlikas (freemen), followed by the aliping
mamamahay (serfs) and aliping saguiguilid (slaves).
However, despite the existence of different classes in
the social structure, practically everyone had access to
the fruits of the soil. Money was unknown, and rice
served as the medium of exchange.


Spanish Period
When the Spaniards came to the Philippines, the
concept of encomienda (Royal Land Grants) was
introduced. This system grants that Encomienderos
must defend his encomienda from external attack,
maintain peace and order within, and support the
missionaries. In turn, the encomiendero acquired the
right to collect tribute from the indios (native).
The system, however, degenerated into abuse of
power by the encomienderos The tribute soon
became land rents to a few powerful landlords. And
the natives who once cultivated the lands in freedom
were transformed into mere share tenants.



1st Philippine Republic
When the First Philippine Republic was
established in 1899, Gen. Emilio Aguinaldo
declared in the Malolos Constitution his
intention to confiscate large estates,
especially the so-called Friar lands.
However, as the Republic was short-lived,
Aguinaldos plan was never implemented.

American Period
The Americans instituted the Torrens system for
the registration of lands
Significant legislation enacted during the
American Period:
Philippine Bill of 1902 Set the ceilings on the
hectarage of private individuals and corporations may
acquire: 16 has. for private individuals and 1,024 has.
for corporations.
Land Registration Act of 1902 (Act No. 496) Provided
for a comprehensive registration of land titles under
the Torrens system.
Public Land Act of 1903 introduced the homestead
system in the Philippines.
Tenancy Act of 1933 (Act No. 4054 and 4113)
regulated relationships between landowners and
tenants of rice (50-50 sharing) and sugar cane lands.

Commonwealth Period
President Manuel L. Quezon espoused the "Social
Justice" program to arrest the increasing social
unrest in Central Luzon.
Significant legislation enacted during
Commonwealth Period:
1935 Constitution "The promotion of social justice
to ensure the well-being and economic security of all
people should be the concern of the State"
Commonwealth Act No. 178 (An Amendment to Rice
Tenancy Act No. 4045), Nov. 13, 1936 Provided for
certain controls in the landlord-tenant relationships
National Rice and Corn Corporation (NARIC), 1936
Established the price of rice and corn thereby help the
poor tenants as well as consumers.


Commonwealth Act. No. 461, 1937 Specified
reasons for the dismissal of tenants and only with
the approval of the Tenancy Division of the
Department of Justice.
Rural Program Administration, created March 2,
1939 Provided the purchase and lease of
haciendas and their sale and lease to the tenants.
Commonwealth Act No. 441 enacted on June 3,
1939 Created the National Settlement
Administration with a capital stock of
P20,000,000.

Japanese Occupation
Hukbalahap controlled whole areas of Central
Luzon; landlords who supported the Japanese
lost their lands to peasants while those who
supported the Huks earned fixed rentals in favor
of the tenants.
Unfortunately, the end of war also signaled the
end of gains acquired by the peasants.
Upon the arrival of the Japanese in the
Philippines in 1942, peasants and workers
organizations grew strength. Many peasants took
up arms and identified themselves with the anti-
Japanese group, the HUKBALAHAP (Hukbo ng
Bayan Laban sa Hapon).

Philippine Republic
President Manuel Roxas (1946-1948) enacted
the following laws:
Republic Act No. 34 -- Established the 70-30
sharing arrangements and regulating share-
tenancy contracts.
Republic Act No. 55 -- Provided for a more
effective safeguard against arbitrary
ejectment of tenants.

President Elpidio Quirino (1948-1953)
enacted the following law:
Executive Order No. 355 issued on October 23,
1950 -- Replaced the National Land
Settlement Administration with Land
Settlement Development Corporation
(LASEDECO) which takes over the
responsibilities of the Agricultural Machinery
Equipment Corporation and the Rice and Corn
Production Administration.

President Ramon Magsaysay (1953-1957)
enacted the following laws:
Republic Act No. 1160 of 1954 -- Abolished the
LASEDECO and established the National Resettlement
and Rehabilitation Administration (NARRA) to resettle
dissidents and landless farmers. It was particularly
aimed at rebel returnees providing home lots and
farmlands in Palawan and Mindanao.
Republic Act No. 1199 (Agricultural Tenancy Act of
1954) -- governed the relationship between
landowners and tenant farmers by organizing share-
tenancy and leasehold system. The law provided the
security of tenure of tenants. It also created the Court
of Agrarian Relations.
Republic Act No. 1400 (Land Reform Act of 1955)
-- Created the Land Tenure Administration (LTA)
which was responsible for the acquisition and
distribution of large tenanted rice and corn lands
over 200 hectares for individuals and 600
hectares for corporations.
Republic Act No. 821 (Creation of Agricultural
Credit Cooperative Financing Administration) --
Provided small farmers and share tenants loans
with low interest rates of six to eight percent.
President Carlos P. Garcia (1957-1961)
Continued the program of President Ramon
Magsaysay. No new legislation passed.



President Diosdado Macapagal (1961-1965)
enacted the following law:
Republic Act No. 3844 of August 8, 1963
(Agricultural Land Reform Code) -- Abolished
share tenancy, institutionalized leasehold, set
retention limit at 75 hectares, invested rights of
preemption and redemption for tenant farmers,
provided for an administrative machinery for
implementation, institutionalized a judicial system
of agrarian cases, incorporated extension,
marketing and supervised credit system of
services of farmer beneficiaries.
The RA was hailed as one that would emancipate
Filipino farmers from the bondage of tenancy.

President Ferdinand Marcos (1965-1986).
Proclamation No. 1081 on September 21,
1972 ushered the Period of the New Society.
Five days after the proclamation of Martial
Law, the entire country was proclaimed a land
reform area and simultaneously the Agrarian
Reform Program was decreed.
President Marcos enacted the following laws:
Republic Act No. 6389, (Code of Agrarian Reform)
and RA No. 6390 of 1971 -- Created the
Department of Agrarian Reform and the Agrarian
Reform Special Account Fund. It strengthen the
position of farmers and expanded the scope of
agrarian reform

Presidential Decree No. 2, September 26,
1972 -- Declared the country under land
reform program. It enjoined all agencies and
offices of the government to extend full
cooperation and assistance to the DAR. It also
activated the Agrarian Reform Coordinating
Council
Presidential Decree No. 27, October 21, 1972 -
- Restricted land reform scope to tenanted rice
and corn lands and set the retention limit at 7
hectares.
President Corazon C. Aquino (1986-1992)
The Constitution ratified by the Filipino people during
the administration of President Corazon C. Aquino
provides under Section 21 under Article II that The
State shall promote comprehensive rural development
and agrarian reform.

The Comprehensive Agrarian Reform Program
On June 10, 1988, former President Corazon C. Aquino
signed into law Republic Act No. 6657 or otherwise
known as the Comprehensive Agrarian Reform Law
(CARL). The law became effective on June 15, 1988.
Subsequently, four Presidential issuances were
released in July 1987 after 48 nationwide
consultations before the actual law was enacted.

President Corazon C. Aquino enacted the
following laws:
Executive Order No. 228, July 16, 1987 Declared full
ownership to qualified farmer-beneficiaries covered
by PD 27. It also determined the value remaining
unvalued rice and corn lands subject of PD 27 and
provided for the manner of payment by the FBs and
mode of compensation to landowners.
Executive Order No. 229, July 22, 1987 Provided
mechanism for the implementation of the
Comprehensive Agrarian Reform Program (CARP).
Proclamation No. 131, July 22, 1987 Instituted the
CARP as a major program of the government. It
provided for a special fund known as the Agrarian
Reform Fund (ARF), with an initial amount of Php50
billion to cover the estimated cost of the program
from 1987-1992.

Executive Order No. 129-A, July 26, 1987
streamlined and expanded the power and
operations of the DAR.
Republic Act No. 6657, June 10, 1988
(Comprehensive Agrarian Reform Law) An act
which became effective June 15, 1988 and
instituted a comprehensive agrarian reform
program to promote social justice and
industrialization providing the mechanism for its
implementation and for other purposes. This law
is still the one being implemented at present

Executive Order No. 405, June 14, 1990 Vested
in the Land Bank of the Philippines the
responsibility to determine land valuation and
compensation for all lands covered by CARP.
Executive Order No. 407, June 14, 1990
Accelerated the acquisition and distribution of
agricultural lands, pasture lands, fishponds, agro-
forestry lands and other lands of the public
domain suitable for agriculture.
President Fidel V. Ramos (1992-1998) When
President Fidel V. Ramos formally took over in
1992, his administration came face to face with
publics who have lost confidence in the agrarian
reform program. His administration committed to
the vision Fairer, faster and more meaningful
implementation of the Agrarian Reform Program.
President Fidel V. Ramos enacted the following
laws:
Republic Act No. 7881, 1995 Amended certain
provisions of RA 6657 and exempted fishponds and
prawns from the coverage of CARP.
Republic Act No. 7905, 1995 Strengthened the
implementation of the CARP.
Executive Order No. 363, 1997 Limits the type of
lands that may be converted by setting conditions
under which specific categories of agricultural
land are either absolutely non-negotiable for
conversion or highly restricted for conversion.
Republic Act No. 8435, 1997 (Agriculture and
Fisheries Modernization Act AFMA) Plugged the
legal loopholes in land use conversion.
Republic Act 8532, 1998 (Agrarian Reform Fund
Bill) Provided an additional Php50 billion for
CARP and extended its implementation for
another 10 years.

President Joseph E. Estrada (1998-2000) ERAP PARA
SA MAHIRAP. This was the battle cry that endeared
President Joseph Estrada and made him very popular
during the 1998 presidential election.
President Joseph E. Estrada initiated the enactment of
the following law:
Executive Order N0. 151, September 1999 (Farmers Trust
Fund) Allowed the voluntary consolidation of small farm
operation into medium and large scale integrated
enterprise that can access long-term capital.
During his administration, President Estrada launched the
Magkabalikat Para sa Kaunlarang Agraryo or MAGKASAKA.
The DAR forged into joint ventures with private investors
into agrarian sector to make FBs competitive.
However, the Estrada Administration was short lived. The
masses who put him into office demanded for his ouster.
President Gloria Macapacal-Arroyo (2000-2010) The
agrarian reform program under the Arroyo
administration is anchored on the vision To make the
countryside economically viable for the Filipino family
by building partnership and promoting social equity
and new economic opportunities towards lasting peace
and sustainable rural development.
Republic Act No. 9700 (August 7, 2009) - AN ACT
STRENGTHENING THE COMPREHENSIVE AGRARIAN
REFORM PROGRAM (CARP), EXTENDING THE
ACQUISITION AND DISTRIBUTION OF ALL AGRICULTURAL
LANDS, INSTITUTING NECESSARY REFORMS, AMENDING
FOR THE PURPOSE CERTAIN PROVISIONS OF REPUBLIC
ACT NO. 6657, OTHERWISE KNOWN AS THE
COMPREHENSIVE AGRARIAN REFORM LAW OF 1988, AS
AMENDED, AND APPROPRIATING FUNDS THEREFOR

RA 9700 or the CARPER law
contains an extension of the budget for CARP
especially the Land Acquisition and Distribution
(LAD) program for five years starting July 1, 2009
and the necessary reforms to complete the
acquisition and distribution of the remaining One
Million Hectares of private agricultural lands to
landless farmers. Moreover, CARPER law
provides for clarification of policies and its
interpretation by CARP implementation agencies
including the decision of judicial courts.

RA 6657, the original CARP law (CARL) has not
been superseded by the CARPER law but
strengthens or improves the CARL. Some
provisions of the CARL were amended like the
provision on the award to beneficiaries and the
schedule of acquisition and distribution, new
provisions were introduced like the Gender
provisions and the Congressional Oversight
Committee and a number of Supreme Court
decisions legislated like the indefeasibility of titles
given under agrarian reform and exclusive
jurisdiction of DAR in agrarian dispute criminal
cases.

Balance the landowners interest, the farmers
interest and the Department of Agrarian
Reforms (DAR) interest
landowners interest is dominant in the
provision:
Just compensation,
the 90% trigger completion for acquisition of small
land (below 10 hectares),
the consideration of 70% of zonal valuation,
attestation requirement to ensure that loyal farmers
will get the land, priority of tenants and regular
farmworkers in distribution to ensure easy
consolidation and the support services for land
owners
the farmers interest is evident in the
provisions:
on the rights and obligation will begin from the
receipt of CLOAs and EPs,
distribution of CLOAs and EPs and actual
possession,
installation of ARBs within 180 days from date of
registration in the title of Republic of Philippines,
usufructuary rights of identified ARBs pending
award and subsidies for initial capital of new ARBs
the DARs interest is apparent in the budget
provision and phasing of land acquisition

CARP is a Continuing Program
With the CARPER law the debate whether CARP
will end and DAR will close shop after five years
from the extension has been clarified..
Under the Constitution, the State is mandated
to undertake an agrarian reform which supports
the opinion that CARP is a continuing program.
It will only end when ALL agricultural lands have
been distributed to landless farmers and that
tenancy system has been converted to
ownership.
What ends in RA 6657 and RA 8532 is the funding
for CARP and this is clarified in section 21 of the
CARPER law. The fund allocated for CARPER is to
further implement the CARP which means that
the CARPER law provides funding needed to
implement CARP.
The same section emphasizes that the CARP will
not end after five (5) years and even after 5 years
when the LAD is completed, DAR will continue
with the delivery of support services and agrarian
justice. Section 30 of the CARPER law provides a
way to legally continue the implementation of
pending CARP cases after the 5-year extension by
filing the initiatory process of CARP.
What is the scope of Republic Act 9700 or
CARPER law?
Under the provisions of Section 3 of RA 9700,
the following are covered:
All alienable and disposable lands of the public
domain devoted to or suitable for agriculture;
All lands of the public domain in excess of the
specified limits, as determined by Congress;
All other lands owned by the government devoted
to or suitable for agriculture;
All private lands devoted to or suitable for
agriculture regardless of the agricultural products
raised or that can be raised thereon.

What is the prioritization of landholdings for
coverage under RA 9700?
The following is the order of priority in the
program implementation under CARPER:
Phase 1
All remaining lands above fifty (50) hectares;
All private agricultural lands with aggregate
landholdings in excess of fifty hectares which have
already been subjected to notices of coverage
issued on or before Dec. 10, 2008;
Rice and corn lands under PD 27;
All idle and abandoned lands;

All private lands voluntarily offered by owners for agrarian
reform, provided that with respect to voluntary land
transfer, only those submitted by June 30, 2009 shall be
allowed;
Provided further that after June 30, 2009, the modes of
acquisition shall be limited to Voluntary Offer to Sell and
Compulsory Acquisition:
Provided furthermore that all previously acquired
lands wherein valuation is subject to challenge by
landowners shall be completed and finally resolved
pursuant to Section 17 of RA 6657 as amended:
Provided finally as mandated by the Constitution, RA
6657 as amended and RA 3844 as amended, only farmers
(or tenants or lessees) and regular farmworkers actually
tilling the lands, as certified under oath by the Barangay
Agrarian Reform Committee (BARC) and attested under
oath by the landowners are the qualified beneficiaries.

All lands foreclosed by government financial
institutions;
All other lands owned by the Government
devoted to or suitable for agriculture which
shall be acquired and distributed immediately
upon the effectivity of this Act, with the
implementation to be completed by June 20,
2012.

Phase 2
Lands 24-50 hectares;
All alienable and disposable public agricultural
lands;
All arable public agricultural lands under agro
forest, pasture and agricultural leases already
cultivated and planted to crops in accordance with
Section 6 Article XIII of the Constitution;
All public agricultural lands which are to be
opened for new development and resettlement;
All private agricultural lands of landowners
with aggregate landholdings above 24
hectares up to 50 hectares which have been
issued notices of coverage on or before Dec.
10, 2008;
All remaining private agricultural lands of
landowners with aggregate landholdings in
excess of 24 hectares regardless as to
whether these have been subjected to
notices of coverage or not with
implementation to begin July 1, 2012 and to
be completed by June 30, 2013.

Phase 3
All other private agricultural lands
commencing with large landholdings and
proceeding to medium and small landholdings
under the following schedule:
Lands of landowners with aggregate landholdings
above ten (10) hectares up to 24 hectares, insofar as
the excess hectarage above ten (10) hectares is
concerned to begin on July 1, 2012 and to be
completed by June 30, 2013;
Lands of landowners with aggregate landholdings
from the retention limit up to ten (10) hectares to
begin on July 1, 2013 and to be completed by June 30,
2014.

What are the factors to be considered in
determining just compensation (Sec. 17, R.A.
6657)?
The following factors are to be
considered in determining just
compensation:
a. Cost of land acquisition;
b. Value of standing crop
c. Current value of like properties, its
nature, actual use and income;
d. Sworn valuation of the owner;
Tax declaration;
Assessment made by government assessors;
Seventy percent (70%) of the zonal valuation
of the Bureau of Internal Revenue (BIR);
Social and economic benefits contributed by
the farmers, farmworkers and the
Government
Non-payment of taxes and loans secured from
any government financial institutions.

Who are qualified Agrarian Reform
Beneficiaries (ARBs) under CARPER?
Lands covered by CARP shall be distributed as
much as possible to landless residents of the
same barangay, or in the absence thereof,
landless residents of the same municipality in the
following order of priority:
Agricultural lessees and share tenants;
Regular farmworkers;
Seasonal farmworkers;
Other farmworkers;
Actual tillers or occupants of public lands;
Collective or cooperatives of the above beneficiaries;
and
Others directly working on the land.

What is the order of priority of land
distribution?
The following shall have priority over a landholding up to a
maximum of three (3) hectares each:
a. Agricultural lessees and share tenant
b. Regular farmworkers;

Only when the abovementioned beneficiaries have
received three (3) hectares each shall the remaining
portion of the landholding, if any be distributed to the
following:
a. Seasonal farmworkers;
b. Other farmworkers;
c. Actual tillers or occupants of public lands;
d. Collective or cooperatives of the above beneficiaries; and
e. Others directly working on the land.
How shall beneficiaries pay the land
awarded to them?
Beneficiaries or Agrarian Reform Beneficiaries
(ARBs) shall pay lands awarded to them in
thirty (30) annual amortizations at six percent
(6%) per annum. The annual amortization
shall start one (1) year from the date of the
Certificate.

What can awarded lands be
conveyed?
Awarded lands may not be sold, transferred or
conveyed except through hereditary
succession, or to the Government, or to the
LBP or to other qualified beneficiaries through
the DAR for a period of ten (10) years;
Provided however that the children or spouse
of the transferor shall have a right to
repurchase the land from the Government or
the LBP within a period of two years.

What is Agricultural Tenancy?
The agricultural tenancy is classified into two;
Leasehold tenancy and share tenancy (no longer
sanctioned under RA No. 6657).
Agricultural Tenancy is the physical possession by a
person of land devoted to agriculture belonging to, or
legally possessed by another for the purpose of
production through the labor of the former and of the
members of his/ her immediate farm household, in
consideration of which the former agrees to share the
harvest with the latter, or to pay a price certain or
ascertainable, either in produce or in money, or in
both. (Sec. 3, RA 1199, as amended)

Share Tenancy exists whenever two persons agree on a
joint undertaking for agricultural production wherein
one party furnished the land and the other his labor,
with either or both contributing any one or several of
the items of production, the tenant cultivating the land
personally with aid available from members of his/her
immediate farm household, and the produce thereof
to be divided between the landholder and the tenant.
(Sec. 166 (25), RA 3844)
Leasehold Tenancy exists when a person who, either
personally or with the aid of labor available from
members of his/ her immediate farm household
undertakes to cultivate a piece of agricultural land
belonging to or legally possessed by, another in
consideration of a fixed amount in money or in
produce or in both. (Sec 4, RA 1199)

What are the requisites for agricultural
tenancy relationship to exist?
The parties are the landholder and tenant;
The object of the relationship is an agricultural land;
There is consent freely given either orally or in writing,
express or implied;
The purpose of the relationship is agricultural
production;
There is personal cultivation;
There is consideration given to the lessor either in a
form of share of the harvest or payment of fixed
amount in money or produce or both.

Does a tenancy relationship exist in cases
where squatters are allowed by the landowner
to cultivate the land for free?
No. Agricultural tenancy does not exist in this
case since there is no expressed or implied
agreement to undertake the cultivation of the
land belonging to the landholder. No
agreement exists in terms of share in harvest
or payment in a fixed amount. It is, however,
possible for the parties to subsequently enter
into a leasehold relationship.

When shall an agricultural tenancy
relationship cease to exist?
Abandonment of the landholding without the
knowledge of the agricultural lessor;
Voluntary surrender of the landholding by
agricultural lessee; and
Absence of forced heir to succeed the
agricultural lessee in the event of his/her
death or permanent incapacity.