AGRICULTURAL

DEVELOPMENT

Agriculture:
The Backbone of the Nation
CONTRIBUTIONS OF AGRICULTURE
Supply raw materials to industry
Increase income
Release of labor force in agriculture
to industry
Export earnings of country
Job creation
Balanced development

 PROBLEMS OF
AGRICULTURE
Risky business
Financing
Production
Processing
Marketing
Lack of government
support
Prices of agricultural
products are not stable
Limited land to cultivate

SOURCES OF
SMALL SCALE
AGRICULTURAL
PROGRESS
Technological change
and innovation
Appropriate
government economic
policies
Supportive Social
Institutions

CONDITONS FOR
GENERAL RURAL
ADVANCEMENT
Modernizing farm
structures to meet
rising food demands
LAND REFORM)
Creating an effective
supporting system
Changing the rural
environment to
improve levels of
living

Definition of terms
LAND REFORM : full range of
measure that may or should be
taken to improve or remedy the
defects in the relationship
among men with respect to their
rights in the land
It is concerned with rights in
land, and their character,
strength and distribution

AGRARIAN REFORM :
includes land reform and the
reform and development of
complementary institutional
framework such as
administrative agencies of the
government
It focuses on broader set of

issues: the class

character of the relations
of production and
distribution in farming and
related enterprises, and
how these connect to the
wider class structure

Land tenure
structure ; one or
more types of land
tenure systems
regulating the rights
to ownership and
control and usage
of land and the
duties
accompanying
such rights

Production
structure : relates
to the nature, type
and modus
operandi as well as
the actual
production or farm
operation

ASPECTS OF AGRARIAN REFROM

ECONOMIC ASPECTS
Vital position in national
economy
Obstacle top agricultural
productivity
An instrument for increasing
agricultural productivity

RELIGIOUS ASPECT
Biblical background
Papal teachings
Church estates

SOCIO-CULTURAL
It is a multifaceted
program
Assumption about
Filipino tenant farmers

Moral aspect
Peace and internal stability
Landowner is more than
compensated
Injustice in landlordism
Innate tendency of man to own
land

 POLITICAL ASPECT
Top priority of the
government
As a political process

LEGAL ASPECT
Two vantage points
To conform with
constitution
Constitutional
mandates
Policy development

WAYS OF CHANGING THE

AGRARIAN STRUCTURE
Revolutionary situation
Authoritarian regime
Within politically democratic
framework

Requirements for successful

implementation
Provisions of a line of
command from the center to
field levels
Provisions of supporting
services
Enforcement of administrative
organization and procedures
and judicial system
Involvement of beneficiaries in
the implementation

Variations of agrarian reform programs

Retention ceilings
Recipients or beneficiaries
Valuation
Mode of payment
Repayment of new owners
Government support
Obligations of the new owners

HISTORY OF AGRARIAN REFORM

I.

PRE SPAINSH TIME

(land pattern, social classes)
II. THE SPANISH
Encomienda system
Feudal system
Capitalism emerged
Royal Decrees of 1880 and
1884 (legal title)
1896 revolution with
peasant
1898 peasants gained
control
Spain ceded Philippines to
US through the Treaty of
Paris

III. AMERICAN PERIOD

Tenancy of peasants on friars continued
Introduced capitalism
LAWS :
Philippine Organic Act 1902 : private individuals
= 16 hectares ; corporations = 1,024
Land Registration Act of 1902: systematic
registration of land through Torrens system
Public Land Act of 1903 homestead system

 IV. Philippine Independence : TydingsMcDuffie Law.

Provision of a 10 year transition period
when the commonwealth Government was
to be organized
Social Justice Program : anti-usury,
tenancy regulation, issuance of license to
homesteaders to farm on public lands

V. JAPANESE
OCCUPATION
Peasant took up arms
HUKBALAHAP
(March 29, 1942)
End of war marked
the end of
HUKBALAHAP
Huk Revolution
(1946-1947)
Huks were defeated
through the assitance
of the US

VI. AGRARIAN REFORM UNDER FILIPINO LEADERSHIP

QUEZON (1935-1944)
Rice Tenancy Law
CROP SHARING Crop Sharing
loans for tenants
ROXAS AND QUIRINO (1946-1953)
RA 34 : 70-30 crop sharing
LASEDECO : Land Settlement Development Corportaion
after WWII
MAGSAYSAY (1953-1957)
Agricultural Tenancy Act of 1954 (RA 1199)
Land Reform Act of 1955 (RA 1400)

 Regulate all
forms of tenure
relations
Rights to Share
tenants to
leasehold
Security of
tenure to tenants
Rice and corn
lands

Reduce large landholdings and

consolidate smaller, uneconomic
holdings into plots of adequate
sizes
Resettle tenants in areas where
land is abundant
Provide adequate credit facilities
for small landholders
Reduce rental and interest rates
Secure land titles for small
landholders
Reform property tax structure
NARRA free distribution of lands
of public domain to landless
tenants

MACAPAGAL (19611965)
Land Reform Code (RA
3844) farmers to own
the land they till
Retention limit 300 to 75
Abolished share tenancy
and instituted leasehold
system

MARCOS (`965-1986)
PD 2 share tenancy as
illegal and declared entire
country as an agrarian
reform are
PD 27
Rice and corn lands
Landholdings to 7 HA
CLT and Emancipation
Patents to new owners
DAR created ( RA 6389)

AQUINO 1986-1992
Proclamation 131 : CARP as
major program of the
government
EO 229 : mechanism for
CARPs implementation
EO 129-A strengthening DAR
as lead agency for
implementaion of CARPP
EO 228 : full landownership to
qualified benficiries; manner of
payment and mode oc
compensation to land owner
RA 6657 : CARL : signed June
10, 1988 and took effect June
16, 1988

EO 405 : Land Bank of

the Philippines as
responsible for land
valuation
EO 406 : CARP as
central to the
governments effort to
hasten countryside agroindustrial development
and directed the
implementing agencies
for alignment of their
programs.
EO 497 : directives to all
government
instrumentalities

Necessity of
agrarian reform

OBJECTIONS TO AGRARIAN
REFORM
Fragmentation of farm holdings

Economic
Social
political

Small farms uneconomic

Small landholdings included
It failed in the past

COMPREHENSIVE AGRARIAN
REFORM LAW
( R.A. 6657)

 Agrarian Reform
is the
redistribution of
lands to farmers
and regular farm
workers who are
landless,
irrespective of
tenurial
arrangements

VISION
A nation where there is equitable
land ownership with empowered
agrarian reform beneficiaries
who are effectively managing
their economic and social
development for a better
quality of life
MISSION
CARP seeks massive and rapid
increase in agricultural productivity
and improvement of access of the
masses to resources, particularly
land

NEED for CARP

Revival and development
of Philippine Agriculture
sector
Increase productivity
Essential element
Shift of capital from land to
industry
Imperatives of the
president
Cooperation, harmony and
understanding
Participation of all
concerned
Partner of the Philippines
to the continuing program
of the government
Needs of times call for a
change
Forces of history

NEEDS of CARP
Realistic and
flexible
Funds
Infrastructure
projects
Education

OBJECTIVES
Equity
Capability
Sustainability

POLICY
Welfare of landless
farmers
Encourage the
formation of
economic sized
families
Land has a social
function and land
ownership has
social responsibility

Comprehensive Agrarian Reform

Program:
Redistribution of agricultural
land; the education and
organization of beneficiaries,
and the delivery of support
services-credit, infrastructure,
technology, post harvest, and
the like
Centerpiece of Aquino
Administration and signed by
Pres. Aquino June 10, 1988
and took effect June 15, 1988

SCOPE :
Ownership and the control of
more or less 10.3 million ha.
Of agricultural land,
representing about one third
of the total area of the
Philippines, shall be
transferred over a 10 year
period to an estimated 3.9
million beneficiaries.

LANDS COVERED BY CARP

Lands covered by
CARP:
All public and private
agricultural lands
regardless of tenural
arrangement and
commodity produced

Public agricultural lands:

lands of public domain
suitable for or devoted to
agriculture

Private agricultural lands :

those owned by private
entities or by government
agencies in a propriety
capacity

LANDS OF MULTINATIONAL
CORPORTAION
Implementation is to be
completed within 3 years
Scope : In excess of 1000 Ha
and 500 Ha in excess of
foreigner
Contracts covering areas not in
excess of 1000 Ha in case of
corporations, and 500 for
individuals are allowed to
continue until August 29,1992
Implementation not later than
10 years
Distribution and formation of
workers cooperative
Production and income sharing
Modern technology in
production

COMMERCIAL FARMING
Subject to compulsory
acquisition
New farms, the ten year
period begins after 1st year
commercial production
Initiation steps to acquire land
VOS, CA or direct payment
scheme
Production and income
sharing
Grounds for disqualification
Mandatory requirement
Optional retirement or
resignation
Dismissal for cause by final
judgment
Waiver or refusal to be
beneficiary
Violation of agrarian reform
laws

EXEMPTIONS

LANDS ACTUALLY, DIRECTLY

AND EXCLUSIVELY USED AND
FOUND TO BE NECESSARY FOR :
Forest reserves and reforestation
Fish sanctuaries and breeding
grounds
Watersheds and mangroves
School sites and campuses
Church sites
Communal or burial grounds
Penal colonies and penal farms
Government and private research
and quarantine centers
All lands with 18% slope and over
except those already developed

Parks and
wildlife

National defense

Church sites and

convents, mosques

ANCESTRAL LANDS
Protection of rights of
indigenous cultural to
ensure their
economic, social and
cultural well being
communities
Suspension of the
implementation
Enactment of regional
laws

 SEC. 9. Ancestral Lands. - For purposes of this Act,

ancestral lands of each indigenous cultural community
shall include, but not be limited to, lands in the actual,
continuous and open possession and occupation of the
community and its members: Provided, That the Torrens
System shall be respected.
The right of these communities to their ancestral lands
shall be protected to ensure their economic, social and
cultural well-being. In line with the other principles of
self-determination and autonomy, the systems of land
ownership, land use, and the modes of settling land
disputes of all these communities must be recognized
and respected.

ORDER OF PRIORITY AREAS

PHASE ONE
Rice and corn lands under
PD 27
All idle or abandoned
lands
All private lands voluntary;
offered by the owners of
agrarian reform
All lands foreclosed by
governmental financial
institution
All lands acquired by
PCGG
All lands owned by the
government devoted to or
suitable for agriculture
4 years implementation

PHASE TWO
All alienable and disposable
public agricultural lands
All arable public agricultural lands
under agro-forest, pasture and
agricultural leases
All public agricultural lands which
are opened for new development
and resettlement
All private agricultural lands in
excess of 50 Ha
4years implementation
PHASE THREE : all other private
agricultural lands commencing
with large landholdings and
proceeding to medium and small
landholdings
Landholdings above 24 Ha up to
50 Ha ( 3years)
Landholdings from the retention
limit of up to 24 Ha (3 years)

LAND DISTRIBUTION
Donor by RA 6657: Landowner
RETENTION LIMIT : LANDOWNER
5 Ha
3 Ha to each child : (1) that he is
at least fifteen (15) years of age;
and (2) that he is actually tilling
the land or directly managing the
farm: Provided, That landowners
whose lands have been covered
by Presidential Decree No. 27
shall be allowed to keep the area
originally retained by them
thereunder;
Section 6, Chapter II

BENEFICIARY:
Natural or juridical persons
Distribution Limit :
3 Hectares

RETENTION LIMIT
RIGHT TO CHOOSE
: compact and
contiguous
EXCEPTION :
Tenants refusal
leaseholder- not
beneficiary
Option has to be
within 1 year period

The right to choose the area to be retained, which shall be compact

or contiguous, shall pertain, to the landowner: Provided,
however, That in case the area selected for retention by the
landowner is tenanted, the tenant shall have the option to choose
whether to remain therein or be a beneficiary in the same or another
agricultural land with similar or comparable features. In case the
tenant chooses to remain in the retained area, he shall be
considered a leaseholder and shall lose his right to be a beneficiary
under this Act. In case the tenant chooses to be a beneficiary in
another agricultural land, he loses his right as a leaseholder to the
land retained by the landowner. The tenant must exercise this option
within a period of one (1) year from the time the landowner
manifests his choice of the area for retention.

QUALIFICATION TO BE
BENEFICIARY

Landless
15 years old or head
of the family at the
time the property
was transferred in
the name of the
Republic of the
Philippines
Willingness, ability
and aptitude to
cultivate the land to
make it productive

ORDER OF PRIORITY IN
LAND DISTRIBUTION
Agricultural lesses and
share tenants
Regular farmworkers
Other farm workers
Actual tillers or
occupants of public
lands
Collective or
cooperatives of the
above beneficiaries
Others directly working
on the land

Modes how private lands are acquired

OPERATION LAND
TRANSFER (OLT)
Rice and corn lands
PD 27

VOLUNTARY OFFER
TO SELL (VOS)
Landowners come
forward to the govt to
offer their lands to DAR

COMPULSORY
ACQUISITION (CA)
Acquired through mandate
of law

EXECUTIVE ORDER 407

Government owning
agricultural lands

VOLUNTARY LAND
TRANSFER
Landowners offer their
lands for sale directly to
qualified beneficiaries

Steps in land acquisitions

Identification of
landowners and
beneficiaries
Land valuation and
landowners
compensation
Transfer of Title from
the landowner

Registration of
landowners : to file
sworn statement in
the Assessor's office
Co-owned,
mortgaged and
sequestered lands
Valuation of property
for compensation
purposes
exemptions

REGISTRATION OF
BENEFICIARIES
DAR, through BARC
shall register all
agricultural lessee.
Tenants or farm
workers
Posting of registry list
Purpose of
registration

TENANTS / LESSEE RIGHT OF

REDEEMTPION
LANDOWNER MUST FIRST OFFER TO SELL
HIS LAND TO TENANT
THE TENANT HAS THE RIGHT TO REDEEM
THE LAND AT REASONABLE PRICE IF
LANDOWNER DECIDES TO SELL WITHOUT
TENANTS CONSENT
SALE OR TRANSFER TO THE GOVERNMENT
ACQUIRED BY THE BENFICIARY UNDER
CARL SHALL BE SUBJECT TO REPURCHASE
OF THE RIGHT OF THE CHILDREN OR
SPOUSE

Valuation of the land

MARO sends notice

To landowner and beneficiary
LBP for valuation

MARO makes
report TO PARO
To complete
Valuation and
For recommendation
To DAR central Office

NOTICE
From DAR to
Landowner to
Acquire land

redistribution

DAR prepares for

signatory
Of secretary

DAR
makes review
Through BLAD

Taking position

Acceptance
Or rejection
of landowner

Payment
In case of
acceptance

Determination
of
compensation

Landowners compensation
Cash and government
bonds
excess 50 ha : 25%
cash
24-50ha : 30% cash
Less than 24 ha : 35%
cash

Government
instruments : shares of
stocks in government
corporations,
tax`credits, Land Bank
bonds

Payment scheme for beneficiaries

Lands awarded is to
be paid to the Land
Bank of the
Philippines in 30
annual amortization
at 6 % per annum
(VOS, CA, EO 407);
and 20 annual
amortization at 6%
(OLT)

Payments made
affordable
1st five annual payments
may not exceed five
percent of the value of
the annual gross
production as established
by DAR
n.b. LBP may reduced the
interest rate after the fifth
year should there be an
increase of 10% of the
annual gross production

 100,000; 35,000
220,000-35,000= 185,000

Support services
BENEFICIARIES
Land survey and titling
Liberalized terms on credit
facilities and production loans
Extension services by wat of
planning, cropping, production
and post harvest technology
transfer
Infrastructure support
Research, production and use if
organic fertilizers
Training and education
assistance

LANDOWNERS
Investment information,
financial and counselling
assistance
Facilities programs and
schemes for conversion and
exchange of baonds
Marketing of LBP bonds

SEC. 63. Funding Source

The initial amount needed to implement this Act for the period of ten
(10) years upon approval hereof shall be funded from the Agrarian
Reform Fund created under Sections 20 and 21 of Executive Order
No. 229.Additional shall include the following:
(a) Proceeds of the sales of the Assets Privatization Trust;
(b) All receipts from assets recovered and from sale of ill-gotten
wealth recovered through the Presidential Commission on Good
Government;
(c) Proceeds of the disposition of the properties of the Government
in foreign countries;

SEC. 63. Funding Source

(d) Portion of amounts accruing to the Philippines from all sources or

official foreign aid grants and concessional financing from all
countries, to be used for the specific purposes of financing
production credits, infrastructures, and other support services
required by this Act;
(e) Other government funds not otherwise not appropriated
All funds appropriated to implement the provisions of this Act shall
be considered continuing appropriations during the period of its
implementation.

 SEC. 64. Financial Intermediary for the CARP. - The

Land Bank of the Philippines shall be the financial
intermediary for the CARP, and shall insure that the
social justice objectives of the CARP shall enjoy a
preference among its priorities.

Proofs of landownership
Emancipation
patents for OLT
lands
Certificates of
landownership
Award (CLOA) for
CA, VOS and EO 407
lands for
resettlement areas
Free patents for
public lands

Grounds for forfeiture of

awarded lands
Non payment of a
total of three annual
amortizations
Negligence
Misuse
Unauthorized sale of
land or any support
extended

Prohibited Acts and Omissions(Chapter XV, Sec.73)

(a) The ownership or possession, for the purpose of circumventing

the provisions of this Act, of agricultural lands in excess of the total
retention limits or award ceilings by any person, natural or juridical,
except those under collective ownership by farmer-beneficiaries.
(b) The forcible entry or illegal detainer by persons who are not
qualified beneficiaries under this Act to avail themselves of the rights
and benefits of the Agrarian Reform Program;
(c) The conversion by any landowner of his agricultural land into nonagricultural use with intent to avoid the application of this Act to his
landholdings and to dispossess his tenant farmers or the land tilled by
them;
(d) The willful prevention or obstruction by any person, association or
entity of the implementation of the CARP;

Prohibited Acts and Omissions(Chapter XV, Sec.73)

(e) The sale, transfer, conveyance or change of the nature of lands

outside of urban centers and city limits either in whole or in part after
the effectivity of this Act. The date of the registration of the deed of
conveyance in the Register of Deeds with respect to titled lands and
the date of the issuance of the tax declaration to the transferee of
the property with respect to unregistered lands, as the case may be,
shall be conclusive for the purpose of this Act;
(f) The sale, transfer or conveyance by a beneficiary of the right to
use or any other usufructuary right over the land he acquired by
virtue of being a beneficiary, in order to circumvent the provisions of
this Act.

GOVERNMENT AGENCIES INVOLVED IN

LAND ACQUISITION

DAR

DENR

LBP

LRA

NIA

DPWH

DA

DTI