Title
Heirs of Arce, Sr. vs. Department of Agrarian Reform
Case
G.R. No. 228503
Decision Date
Jul 25, 2018
Heirs of Arce sought CARP exclusion for 76.39-hectare livestock land, arguing pre-CARP use. SC ruled exemption, citing industrial classification and flawed DAR inspection.

Case Summary (G.R. No. 139173)

Antecedent Facts

The petitioners were registered owners of a 76.39-hectare parcel of land that was historically utilized for livestock raising. This land was dedicated to the feeding and dairy production of carabaos, cattle, and goats. Following recommendations from the Philippine Carabao Center, some livestock were relocated to a secondary facility in Quezon City to prevent a liver fluke infestation, while younger animals remained on the original land. Petitioner farmers continued to maintain napier grass, a vital source of fodder, on the subject lands.

Notice of Coverage and Petition for Exclusion

In August 2008, the Provincial Agrarian Reform Officer issued a Notice of Coverage (NOC) under the Comprehensive Agrarian Reform Program (CARP). In response, the petitioners submitted a Petition for Exclusion citing their long-term use of the land for livestock purposes, along with substantial evidence supporting their claims. Both local and regional agrarian reform officers subsequently recommended the granting of the petition based on the land's historical use as a livestock farm.

DAR Decision and Initial Favor

In December 2009, the Regional Director of the Department of Agrarian Reform issued an order granting the exclusion of the subject lands from CARP. This order was confirmed as final and executory as no appeals were filed. However, subsequent inspections reported a lack of livestock on the land, leading to controversy over the status of the subject properties.

Challenge and Subsequent Rulings

Facing opposition from local farmer organizations, the Department of Agrarian Reform Secretary, in December 2012, reversed the earlier decision and denied the exclusion petition. The denial was based on claims that the land was no longer being used for livestock activities, as evidenced by an ocular inspection report.

Arguments of Petitioners

In their appeal, the petitioners contended that the DAR's reversal was unfounded and that the inspections violated their rights to due process. They maintained that their lands were still utilized for livestock raising and emphasized the historical use dating back to before the enactment of CARP. Furthermore, they argued that the evidence relating to the absence of livestock was misleading, as some livestock had been relocated for health reasons without disqualifying the land's status.

Findings and This Court's Ruling

The Supreme Court found merit in the petitioners' arguments, determining that the subject lands should be exempt from CARP coverage based on historical use for livestock raising. The Court emphasized that the transfer of certain livestock did not negate the agricultural classification of the land.

Legal Framework and Constitutional Context

In analyzing the case's legal foundations, the Court referred to the 1987 Constitution and relevant actions under RA 6657, emphasizing the intent of the agrarian reform polici

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