Agrarian Reform

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, Aguinaldo’s 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 antiJapanese 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 sharetenancy 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 sharetenancy 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, agroforestry 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 (Farmer’s 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 farmer’s interest and the Department of Agrarian Reform’s (DAR) interest • landowners’ interest is dominant provision:

in the

– 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 farmer’s 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 DAR’s 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. b. c. d. e.

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.

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.