QuestionsQuestions (Republic Act No. 1199)
To establish agricultural tenancy relations on the principle of social justice; protect the rights of both tenants and landholders; ensure an equitable division of produce and income; provide incentives for more efficient production by tenant-farmers; bolster their economic position; and encourage participation in peaceful, vigorous, and democratic rural communities.
It is the physical possession of land devoted to agriculture belonging to or possessed by another, for agricultural production through the labor of the tenant and members of his immediate farm household, in consideration of sharing the harvest and/or paying a price certain or ascertainable in produce or money or both.
Leasehold tenancy exists when the cultivator pays a fixed or percentage price for use of agricultural land. Share tenancy exists when land is furnished by one party and labor by another (with possible contribution of production items), and the produce is divided in proportion to contributions.
Tenant: one who cultivates the land himself (with labor from the immediate farm household) with the landholder’s consent and shares the harvest or pays consideration under the applicable system. Landholder: owner/lessee/usufructuary/legal possessor who lets or grants land for cultivation for shares (share tenancy) or a price (leasehold tenancy).
It arises once landholder and tenant agree (expressly or impliedly) to jointly cultivate land under share or leasehold tenancy. After establishment, the tenant is entitled to security of tenure as later provided (not dispossessed except for just causes and through court authorization).
No. The sale or alienation does not of itself extinguish the relationship; the purchaser/transferee assumes the rights and obligations of the original landholder.
Contract terms continue until modified; modifications must not prejudice the tenant’s security of tenure. Freedom to contract exists, but contracts are void if contrary to law, morals, or public policy, such as giving tenant less than the minimum share for contributions or requiring uncompensated work/service not connected with duties under the Act; for leasehold, charging more than allowed consideration/fair rental value or imposing prohibited conditions as precedent to lease.
It must be drawn in quadruplicate in a language/dialect known to the parties, signed/thumb-marked by landholder/authorized rep and tenant before two witnesses (one chosen by each), with one witness reading contents if a party cannot read. It must be acknowledged before the municipal treasurer/JP/mayor; no fees or stamps. The municipal treasurer must register the third copy and forward the fourth to the court, with annotations of registration details.
The municipal treasurer keeps a record of all registered tenancy contracts in his municipality, known as the “Registry of Tenancy Contracts,” including copies and annotations of renewals, novations, cancellations, etc. No fee is charged and registration is not subject to documentary stamp tax.
The tenant may change systems and certain share arrangements at the expiration of the contract period if duly registered; otherwise at the end of the agricultural year. The change to the leasehold system becomes effective one agricultural year after notice to the landholder.
Interest on loans/advances for cultivation-related expenses and subsistence shall not exceed 8% per calendar year. For non-money loans (grain/produce), interest is computed based on the current price at the time of the loan. Obligations referring to amounts (including interest) are void unless in writing in a language/dialect known to the party charged and subscribed by that party or authorized agent.
Final accounting must be made within specified periods after threshing (rice: within 10 days) or harvest/gathering (other crops: within same period), and for processed crops within 5 days after sale, with receipts exhibited. It must be in writing in a language known to the tenant, signed in presence of two witnesses; it is conclusive except for fraud/error/force/intimidation/undue influence. If no written accounting, the tenant may petition the court within 3 years to compel proper accounting.
In share tenancy, 25% of the tenant’s share of produce; in leasehold tenancy, the entire produce. Also exempt: one work animal and one of each kind of farm implement belonging to the tenant, provided their value does not exceed P500.
The tenant cannot be dispossessed except for causes enumerated in Sec. 50 and only after the same is proved before and authorized by the court. The burden of proof is on the landholder (Sec. 51).
Examples: (1) bona fide intention of landholder to cultivate land personally or through mechanization (with conditions and presumption of bad faith if not done); (2) violation or failure to comply with terms/conditions of the contract or provisions of the Act (unless substantial compliance); (3) failure to pay agreed rental or deliver landholder’s share (not applicable if caused by fortuitous event/force majeure); other causes include using land for another purpose, failure to follow proven farm practices, negligence causing serious injury to land, and conviction for a crime against the landholder/family.
Consideration for use of ricelands is capped at 30% of gross produce for first class lands and 25% for second class lands, based on productivity using the normal average harvest of the three preceding years (first class: more than 40 cavanes/ha; second class: 40 cavanes/ha or less).