MERCADO, SOFIA MIKAELA D.

JD4202

1. Juan owns a five-hectare riceland. Pedro, an agricultural tenant, has been working on
the land since 1990. Compute the rent which Pedro has to pay given the following
averages for the last three agricultural years:
a. Sacks of palay harvested per hectare : 50 sacks
b. Price of palay per sack : P 300
c. Number of planting per year : 2
d. Costs of Production per hectare
i) Fertilizers : P 2000
ii) Harvesting : P 2000
iii) Threshing : P 2000
iv) Seeds : P 2000
v) Insecticides : P 2000
vi) Hauling : P 2000
Answer: Under Section 34 of Republic Act 3844, the lease rental to be paid by all
agricultural lessees shall not be more than the equivalent of twenty-five percent of the
average normal harvest during the three agricultural years immediately preceding 15
June 1988, after deducting the amount used for seeds and the cost of harvesting,
threshing, loading, hauling and processing, whichever is applicable. Provided that if the
land has been cultivated for a period of less than three years, the initial consideration
shall be based on the average normal harvest during the preceding years when the land
was actually cultivated. Hence;
50 sacks of palay x 5 (hectares) = 250 sacks of palay
250 sacks of palay x P 300 (price of palay per sack) = P75,000
P75,000 (total price of palay per year) x 2 (number of planting per year) = P150, 000
P12,000 (cost of production per hectare) x 5 (hectares) = P60,000
P150, 000 (average normal harvest) P60,000 (total cost of production) = P90,000
P90,000 ( average normal harvest total cost) x .25 (maximum percentage allowed by
law) = P22, 500
The lease rental to be paid by Pedro should not be more than P22, 500.00
2. If Pedro introduces secondary crops on the land,
a. What is a secondary crop?
b. Is this allowed or prohibited under the law? Explain.
c. Can Pedro ask for an increase in the monthly rent? Why or why not?
Answer: Yes. Under Section 34 of Republic Act 3844, if capital improvements are
introduced on the farm not by the lessee to increase its productivity, the rental shall be
increased proportionately to the consequent increase in production due to said
improvements. In case of disagreement, the Court shall determine the reasonable
increase in rental. Hence, Pedro can ask for an increase in the monthly rent provided
the above mentioned improvement was made.
d. When can the crops be changed from rice to corn?

3. Aldo, the eldest, Barbara and Caloy, the youngest, are children of Juan, a tenant of
Don Subas. Juan is married to Elsa.
a. If Juan dies, who will succeed as the tenant(s) of Don Subas?
Answer: Under Section 9 of Republic Act No. 3844, In case of death or
permanent incapacity of the agricultural lessee to work his landholding, the leasehold
shall continue between the agricultural lessor and the person who can cultivate the
landholding personally, chosen by the agricultural lessor within one month from such
death or permanent incapacity, from among the following: (a) the surviving spouse; (b)
the eldest direct descendant by consanguinity; or (c) the next eldest descendant or
descendants in the order of their age: Provided, That in case the death or permanent
incapacity of the agricultural lessee occurs during the agricultural year, such choice
shall be exercised at the end of that agricultural year: Provided, further, That in the
event the agricultural lessor fails to exercise his choice within the periods herein
provided, the priority shall be in accordance with the order herein established.

In case of death or permanent incapacity of the agricultural lessor, the leasehold shall
bind his legal heirs.
 Therefore, Don Subas has the right to elect whoever in those enumerated
persons shall succeed as his tenant. However, failure of Don Subas to exercise such
right within a month, the priority shall be in accordance with the order established by
law.

b. If Don Subas goes to you for legal advice on the matter, what will you propose as the
BEST option? Explain.
Answer: Under Section 9 of Republic Act No. 3844, in case of death of
permanent incapacity of the lessee, the leasehold shall continue between the
agricultural lessor and the person who can cultivate the landholding personally, chosen
by the agricultural lessor within one month from such death or permanent incapacity,
from among the following: (a) the surviving spouse; (b) the eldest direct descendant by
consanguinity; or (c) the next eldest descendant or descendants in the order of their
age: Provided, That in case the death or permanent incapacity of the agricultural lessee
occurs during the agricultural year, such choice shall be exercised at the end of that
agricultural year: Provided, further, That in the event the agricultural lessor fails to
exercise his choice within the periods herein provided, the priority shall be in
accordance with the order herein established.
Clearly, the best option for Don Subas is to exercise his right to elect among
those persons provided by law within the given period which is one month from the
death of Juan. This is so for him to be able to choose personally whom he trusts to
cultivate his land.

4. Under Republic Act No. 3844, it is provided that one of ground for dispossession is,
as follows:

The agricultural lessor-owner or a member of his immediate family will personally

cultivate the landholding or will convert the landholding, if suitably located, into
residential, factory, hospital or school site or other useful non-agricultural purposes:
Provided; That the agricultural lessee shall be entitled to disturbance compensation
equivalent to five years rental on his landholding xxx
Such ground for dispossession is amended under Republic Act No. 6389, as follows:
The landholding is declared by the department head upon recommendation of the
National Planning Commission to be suited for residential, commercial, industrial or
some other urban purposes: Provided, that the agricultural lessee shall be entitled to
disturbance compensation equivalent to five times the average of the gross harvests on
his landholding during the last five preceding calendar years."
Give possible reasons why such amendment was made.
Answer: One of the possible reasons why the above provision has been
amended is because the said provision confers to the landowner and to his immediate
family the power to evict the lessee of an agricultural land at any time when they have
decided to personally cultivate the land or convert it to other non-agricultural use.
Second, the very reason why Republic Act 3844 has been substantially modified by
Republic Act 6389 is because most of the provisions are considered as against public
policy. Third, the agricultural land might not be suitable to some other non-agricultural
uses, hence, recommendation of the National Planning Commission is needed to
confirm that such land is suited for residential, commercial, industrial or some other
urban purposes.

5. When can the landowner ask for an increase in the lease rental?
Answer: Under Section 34 of Republic Act 3844, if capital improvements are
introduced on the farm not by the lessee to increase its productivity, the rental shall be
increased proportionately to the consequent increase in production due to said
improvements. In case of disagreement, the Court shall determine the reasonable
increase in rental.

6. Distinguish Sharehold from Leasehold Tenancy.

Answer: The two tenancy systems are distinct and different from each other. In
sharehold, the tenant may choose to shoulder, in addition to labor, any one or more of
the items of contributions (such as farm implements, work animals, final harrowing,
transplanting), while in leasehold, the tenant or lessee always shoulders all items of
production except the land. Under the sharehold system, the tenant and the landholder
are co-managers, whereas in leasehold system, the tenant is the sole manager of the
farmholding. Finally, in sharehold tenancy, the tenant and the landholder divide the
harvest in proportion to their contributions, while in leasehold tenancy, the tenant or
lessee gets the whole produce with the mere obligation to pay a fixed rental.

7. What kinds of crops, if any, are excluded in the computation of the lease rental?