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Concepts of Land Reform

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Land Tenure System

The Land tenure system describes the legaland contractual arrangements by which cultivators gain access to the productive powers of the land. Such arrangements may be a matter of customs or traditions. The tenure system constitutes the rules and procedures governingthe rights, responsibilities and Liberties of individuals and groups inthe use and control over the basicresources of land

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Land Tenure System


Sometimes, the legal system mayeven be different from the traditional or de facto,system. The legal framework maybe of more recent making than the one molded by custom, and, therefore, this legal system may come in conflict with the customary framework. Part of the land problems in Mindanao stems from the conflict between communal forms ofownership (customary, traditional, defacto framework of the Muslims) and the legal framework of private, titled ownership (torrens 4/22/12 title system of the settlers) which was the result of the laws passed by the central

Land Tenure System

In many countries, especially in low-income, traditional societies, land itselfrepresents a principal form of wealth. Land is therefore a principal source not only of income but also of economic and political power.

The political and other non-economic dimensions of powercan be sufficiently strong (as in any traditional feudal system) so that the tenant or farmer is made to follow the wishes 4/22/12 impositions ofthe landlords. This can be in or the voting or other abuses of power by the

Why there is need for land reform?

If land were relatively free, land tenure problemswould hardly arise. With high population growth comes crowding, which means progressive increases in the man-toland ratio. The competition for land becomes acute. Land tenures arise only inareas where the land isdensely occupied. Supported by traditional and legal framework, someindividuals may then own more land while themany others fail to acquire any.

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Why there is need for land reform?


Tradition land tenure systems have been cited as major cause of the pooreconomic conditions of the rural areas inmany developing countries. There maybe an increase agricultural output. But without appropriate improvements in tenure system, the cultivators of theland may not share adequately in agricultural progress. Without sufficient opportunities to share equitably from the products of the farm, the progressive impulses in the farmer, such as risk-taking in the 4/22/12 adoption of more productive technology, are not encourage.

Land Reform vs Agrarian Reform?

Agrarian reform refers to changes that are sought in the land tenure system, but goes beyond the question of land rights. It covers such issues as who owns or does not own, how land is used and who shares in the distribution of theproduce of the land. Itincludes those aspects of change that pertain the land productivity and rate of agricultural development. Sometimes, it even covers changesin social statues and political power of the farmer.

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Land Reform vs Agrarian Reform?

Land reform, or land redistribution, is an aspect of agrarian reform. In order to make land redistribution successful, other components of agrarian policies areneeded, such as those that increase the development potential of the land.

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Agrarian reform therefore covers some or all the following elements:
Distribution of land to the cultivator

Security of tenure and fair system of rental payments Improved methods of cultivation through the improvement of rural institutions serving the

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It is fair to say, however, that in most ruralsocieties, the question of land ownership is the most critical. Hence, land reform takes on a central position as a component of agrarian policies. The redistribution of land ownership and other land rights has taken on different forms, depending on the particular historical circumstances of acountry

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Content of Land Reform

Redistribution of Land Land to the Landless Tillers Greater Security for Tenants Rent Reduction Land Ownership Ceiling The Political Economy of Land Reform

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Redistribution of Land

Where landownership is concentrated and a landlord class is receiving rents fromthe land, the argument for land redistribution is strong. Large landed estates are expropriated by the state authority. These are then broken up into smaller farmsfor distribution to the cultivatorfarmers. Redistribution with compensation give rise to a means of compensation cash or bondsfor the former landowner.

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Redistribution of Land

Cash payments are not usually for the full value of the land. Since famers are usually poor, they cannot acquire land by paying cash. The government has to come in between. The government pays the landlord, and the new landowner hasto find a means of paying the installments (amortize to fully payfor the land. Usually, the government would use an agency, or a land bank, as the means of facilitating this transaction.

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Redistribution of Land

Land valuation is a prelude to compensation. In most cases, valuation is based onfactors such as tax records,land revenues, rent collected, landlords net income and produce. Market prices are seldom used, except as a yardstick for download valuation. This is so because land prices are seldom fully in line with the actual productivity of theland.

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Land to the landless tillers

The objective of the land reform programmay be to promote the owner-cultivator. Hence, landless farmers are to be given land which to farm. Land distribution has taken the form of moving farmers from areas where from man-toland ratio is very high to those where it is low.

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Land to the landless tillers

Land resettlement is undertaken as part ofland reform, especially inthe more sparsely populated areas of the country. But a more active program has undertaken years ago when large Virgin Islands were being opened for settlement. This practice included the granting of the homestead, which is a grant of a land not in excess of 24 hectares, taken from public lands for conversion into a farm. Some parts of Mindanao were opened as a result of this policy in the Philippines.

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Greater Security for tenants


In situations where land is rented by the farmers, the farmers can be driven off the land. The circumstances are adverse to the tenant farmer. With high rents and insecure tenure, they are unable to improve theireconomic conditions, especially since the farmers probably live on the margin of subsistence. Part of the problem is the low productivity of traditional agricultural practices, but insecurity oftenure creates uncertainties that prevent the farmer from taking a more creative 4/22/12 approach to farming methods.

Rent Reduction

Crop-sharing arrangements, or rental payments, when the landlord contributes only the land while the tenants provide all components of farming,are commonly high. For instance, rents raging rate from 50 to 70 percent have been found to exist in many parts of Asia. In thePhilippines, crop sharing arrangements has been in this rangeuntil a law regarding rentals (known as tenancy shares) reduce them to 30 per cent.

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Rent Reduction

Rent reduction may not capture someof fundamental relationship that occurs before sharing in the proceeds. There maybe a whole set of cost deductions thatare undertaken, such as the cost ofinputs, including crop financingand the valuation of the inputs. In many cases, the financing of the cost maybe tilted in favor of a high amount being paid to the landlord before the netproceeds are shared and therental fixed.

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Rent Reduction

Compliance to rental fixing arrangements by law is a problem in most land reform legislation. The bargaining power is generally on the side ofthe landlords, unless the tenant has some security of tenure.

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Land Ownership Ceiling

The objective of owner-farmers may be a feature of the land reform program. This means to abolition to tenancy as aland tenure system. Inthis program the need of landownership ceiling is significant. The population-to-land ration (or population density)differs by country and region(within a country). The ownership ceiling can be use as a means of widening the landownership

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HISTORY & EVOLUTION OF MAJOR AGRARIAN REFORM LAWS/ISSUANCE/PR OGRAMS UNDER THE DIFFERENT PHILIPPINE
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A. MANUEL L. QUEZON (19351944)

1935 Constitution

The promotion of social justice to ensure the well-being & economic security of all people should be the concern of the State.

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Act No. 4054

(Rice Share Tenancy Act) - first law on crop-sharing - legalized the 50-50 share between landlord and tenant

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B. Manuel A. Roxas (1946-1948)

Republic Act No. 34

-an act amending certain sections of Act No. 4054, as amended, otherwise known as The Philippine Rice Share Tenancy Act.

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established a 70-30 sharing agreement between tenant and landlord - whoever shouldered the expense of planting & harvesting and provided the work animals would be entitled to 70% of the harvest - reduced the interest on landowner loans to tenant at no more than 6% 4/22/12 instead of 10%

C. ELPEDIO R. QUIRINO (19351953)

Executive Order No. 355

-created the Land Settlement & Development Corporation -dissolved the National Land Settlement Administration, the Rice & 4/22/12 Corn Production

October 23, 1950

-Land Settlement & Development Corporation (LASEDECO) was created to accelerate the resettlement program which was launched shortly before World War II

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Land Settlement & Corporation (LASEDECO)

Development

-replaced the national Settlement Administration (NLSA)

Land

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-takes over the responsibilities of the Agricultural Machinery Equipment Corporation and Rice and Corn Production Administration

D.RAMON MAGSAYSAY (19531957)

Republic 1160

Act

No.

(NARRA Law)
-an act to further implement the free distribution of Agricultural Lands of the public domain as provided for in Commonwealth Act No. 691.
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-abolished

the

Land

NARRA

-established in order to hasten free distribution of agricultural lands of the public domain to landless tenants and farm workers - particularly aimed at the peasant base on the HUK (Hukbo ng Bayan Laban sa HaponHUKBALAHAP) -successful 4/22/12 in attracting farmer-turned rebels to a peaceful life by giving them home lots and farms

E. DIOSDADO P. MACAPAGAL (1961-1965)

Republic 3844

Act

No.

(Agricultural Land Reform Code /Code of Agrarian Reforms)


-an act to ordain the Agricultural Land reform Code & to Institute Land reforms in the Philippines including the Abolition of Tenancy & the 4/22/12 Channeling of capital into

-aimed to make the farmers owners of the land they titled

-lowered the retention limit from 300 to 70 hectares -abolished share tenancy & instituted leasehold system -invested rights of preemption 4/22/12 redemtion for tenant farmers &

- institutionalized a judicial system of agrarian cases

-incorporated extension, marketing & supervised credit system of services to farmer beneficiaries. -establish owner-cultivatorship & the economic family-sized farm as the basis of Philippine agriculture and as consequence, divert landlord capital in agriculture to 4/22/12 industrial development

- created the Land Authority headed by the Governor for its implementation and to carry out the aforementioned basis objective

-incorporated some of the features of previous land reform laws -exempted coverage of plantation crops which were deemed too important as export earners that time
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F. FERDINAND E. MARCOS (19651986)

Republic 6389

Act

No.

-an act amending Act No. 3844, as amended, otherwise known as the Agricultural Land Reform Code

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-significantly amended several provisions of Republic Act No. 3844

-created the Department of Agrarian reform -instituted the Code of Agrarian Reforms

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Presidential Decree No. 2

Land Reform Area)

Country as a (Proclaming the Entire

-placed the whole country under land reform program

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Presidential Decree No. 27

(Decreeing the Emancipation of Tenants from the Bondage of the Soil, Transferring to them the ownership of the Land they till and providing the instruments and mechanisms therefore) -restricted land reform tenanted rice and corn lands scope to

-provided for tenanted lands devoted 4/22/12 to rice and corn to pass in

-share tenants who worked from a landholding of over 7 hectares could purchase the land they tilled, while share tenants on land less than 7 hectares would become leaseholders.

-at the time of land transfer, Certificates of Land Transfer (CLTs) were issued to new owners & when payments were completed, Emancipation Patents (Eps) were granted
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G. CORAZON C. AQUINO (19861982)

1987 Constitution II,

(Article 21)

Section

The State shall promote comprehensive rural development and agrarian reform.

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Proclamation 131

(Instituting Comprehensive Agrarian Reform Program) -instituted the CARP program of the government as a major

-Agrarian Reform Fund (ARF)


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-special fund -P50 billion to cover estimated cost

-covers all agricultural lands regardeless of tenurial agreement and commodity produced

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H. FIDEL V. RAMOS (1992-1998)

Executive 7881

Act

No.

-an act amending certain provisions of Republic Act No. 6657

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Amended certain provision of Republic Act No. 6657, more significantly Section 10 thereof on exemptions and exclusions from CARP, to wit:

a. Land -actually, directly or exclusively used for parks and wildlife, forest reserves, reforestation, fish sanctuaries & breeding grounds, watersheds and mangroves
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b. Private Lands - actually, directly or exclusively used for prawn farms & fishponds c. Lands - actually, directly or exclusively used and found to be necessary for sites and institutions & all lands with 18% slope and over, except those already developed
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I. JOSEPH E. ESTRADA (19982001)

Executive Act No. 26

-providing opportunities for the development of beneficiaries under Comprehensive Land Reform Program to become Productive Entrepreneurs.
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lands covered by Certificates of Land Ownership Award (CLOA)

- now be accepted as collateral to secure loans -loan proceeds shall be used exclusively in the furtherance of the agricultural productivity of the land and related activities.
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J. GLORIA MACAPAGAL-ARROYO (2001-2010)

Bayan-Anihan

(Bayan-Anihan Program for Rural development- BPRD) -DARs banner program under the Arroyo Administration to hasten the implementation of CARP

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6 Main Thrust of Bayan-Anihan


Fast tracking distribution

a.

land of

acquisition

&

b.

Integrating, rationalizing & institutionalizing the delivery of support services Swift delivery of agrarian justice Promoting peace Intensifying & institutionalizing marketing Modernizing the DAR bureaucracy

c.

d.

e.

f.

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Comprehensive Agrarian Reform Program

Republic act no. 6657 or the Comprehensive Agrarian reform Program pertains to the redistribution of all public and private agricultural land regardless of crops planted or tenurial arrangement, to landless farmers and all farm workers, to include all the necessary support services designed to improve the economic status of beneficiaries and increase land productivity.

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Comprehensive Agrarian Reform Program

Landowners whose land will be subjected for redistribution are entitled to just compensation. Moreover, they are allowed to retain a portion of their landholdings of their choice. The retention limit is as follows: Land owner: 5 hectares

Each child of the land owner: 3 hectares (provided that the child is at least 15 years old)
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Comprehensive Agrarian Reform Program

The comprehensive agrarian reform program has a 10 year implementation period which starts from the affectivity of republic act. 6657. The implementation period is divided into 3 phases:

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Comprehensive Agrarian Reform Program

Phase one

Rice and corn lands under PD 27 All idle or abandoned lands All private lands voluntarily offered by the owners for agrarian reform All lands foreclosed by government financial institutions All lands acquired by the Presidential Commission on Good Government All other lands owned by the government

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Comprehensive Agrarian Reform Program

Phase two

All alienable and disposable public agricultural lands. All arable public agricultural lands under agroforest, pasture, and agricultural leases already cultivated and planted to crops All public agricultural lands which are to be opened for new development and resettlement All private agricultural lands in excess of 50 hectares

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Comprehensive Agrarian Reform Program

Phase three

Landholdings above 24 hectares up to 50 hectares Landholdings from the retention limit up to 24 hectares

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Comprehensive Agrarian Reform Program

Qualified beneficiaries of CARP:


Leasehold tenants and share tenants Regular farm workers Season farm workers Other farm workers Actual Tillers or occupants of public lands Other who are directly working on the land Cooperatives of the above beneficiaries

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Comprehensive Agrarian Reform Program

No qualified beneficiaries may own more than 3 hectares of agricultural lands. Land Cultivated under contract with multinational corporations shall be programmed for redistribution immediately upon effectivity of R.A. 6657 and to completed within 3 years.

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Comprehensive Agrarian Reform Program

Ancestral Lands provided that Autonomous Regions shall make their own agrarian reform program. Commercial Farms. Farms devoted to livestock, poultry and swine raising, aquaculture, fruit farms, vegetable and cut flower farms cacao, coffee and rubber plantations shall be considered for redistribution after 10 years of the effectivity of CARP.
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Comprehensive Agrarian Reform Program

Lands exempted from redistribution include the following: Parks, wildlife, forest reserves, reforestation, fish sanctuaries, breeding grounds, watersheds and mangroves, national defense sites, school sites and campuses including school operated experimental farm stations, seeds and seedlings research and pilot production centers, church sites and convents, mosque sites and islamic centers communal burial grounds and cemeteries, penal colonies, research centers, quarantine 4/22/12 centers and all land with 80 degree slope and over.

Comprehensive Agrarian Reform Program

Mode of payment to Landowner: A. Cash 1. 25% cash for lands above 50 hectares 2. 30% cash for lands above 24 hectares up to 50 hectares 3. 35% for lands 24 hectares and Below B. Shares of stock in Government owned 4/22/12 institutions

Comprehensive Agrarian Reform Program

C. Tax Credits D. Land Bank Bonds Landowners who voluntarily offer their land for redistribution is entitled to an additional 5% cash payment.
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Comprehensive Agrarian Reform Program

Land values shall be determined through the following: 1. Cost of the acquisition of land 2. Nature, actual use and income of the land 3. Current Value of like properties 4. Sworn Valuation by the owner
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5. Tax Declarations 6. Assessed value

Comprehensive Agrarian Reform Program

Necessary Support Services that must be provided under CARP 1. Irrigation Policies 2. Infrastructure development and public works 3. Collateral-free loans 4. Cooperative management training
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Marketing services

Comprehensive Agrarian Reform Program

Special Areas of concern 1. Subsistence Fishing 2. Logging and mining concessions 3. Sparsely occupied public agricultural lands 4. Idle, abandoned, foreclosed and sequestered lands
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5. Rural Women 6. Veteran and Retirees

Comprehensive Agrarian Reform Program

In the 2002 SONA, GMA cited the accomplishment of 250,000 land reform out of the 200,000 initial target. The 2003 SONA technical reports cites the following accomplishments:

Distribution of 407, 639 hectares of public and private lands since January 2001 to June 2003. Distribution of Five Certificate of ancestral domain covering 73, 719 hectares

Worked for the passage of Republic act. No. 4/22/12 9176, or the free patents law, which expedites the administrative titling of lands to legitimate