Title
Amendments to Agricultural Tecy Act
Law
Republic Act No. 2263
Decision Date
Jun 19, 1959
The Amendments to the Agricultural Tenancy Act of the Philippines introduce changes and clarifications to improve the rights and relationships between landholders and tenants in agricultural tenancy agreements, including defining leasehold tenancy, granting rights to tenants, and establishing penalties for violations.

Questions (Republic Act No. 2263)

Leasehold tenancy exists when a person, personally or with labor from members of his immediate farm household, cultivates agricultural land susceptible of cultivation by a single person together with household members, belonging to or legally possessed by another, in consideration of a fixed amount in money or produce or both.

It is the time the first farm operation for the production of the principal crop is performed, such as seed-bed preparation in the case of rice.

Broadcasting is the strewing or scattering of seeds directly to the landholding in lieu of transplanting.

Ratooning is cutting the straw close to the ground at harvesting time after standing water is drained out, to allow young tillers to sprout from rootstocks and develop into mature normal bearing plants in three or four months, with aid of fertilizer, manure, or compost.

It is any product raised other than the principal crop in each agricultural year, excluding the produce of the lot referred to in Section 22(3).

It means that more than 60% of the tenants' labor as provided in the Act shall be displaced by farm machinery and that mechanized implements will lower the cost of production.

The tenancy relationship is extinguished by death/incapacity unless continued: it shall continue between the landholder and one member of the tenant's immediate farm household related within the second degree by consanguinity, who shall cultivate personally. If there are two or more qualified members, the landholder may choose which member succeeds.

No. The expiration of contract period, or sale/alienation/transfer of legal possession does not of itself extinguish the tenancy relationship. In the case of transfer, the purchaser/transferee assumes the rights and obligations of the former landholder.

The tenant may change the contract from share tenancy to leasehold tenancy and vice versa, and from one crop sharing arrangement to another share arrangement. If a registered written contract exists, change may be exercised at least one month before the beginning of the next agricultural year after expiration of the contract; if there is no registered written contract, at least one month before the agricultural year when the change shall be effected.

A home lot suitable for dwelling not more than 3% of the tenant’s landholding, not exceeding 1,000 square meters, located at a convenient and suitable place within the landholder’s land; the tenant constructs dwelling and raises specified activities with products accruing exclusively to the tenant. The dwelling cannot be removed except as provided in Section 26, unless severance of tenancy occurs under Section 9 or unless the tenant is ejected for cause and only after 45 days following severance/dismissal.

The landholder may choose kind of crop and seeds, but if the tenant objects, the court settles the conflict based on the best interest of both parties. In no case may a tenant be ejected as a consequence of a change in crop.

(4) The landholder shall not mortgage the tenant’s share in the crop; any mortgage on the land and/or crop by the landholder shall not affect the tenant’s share. (5) The landholder shall not discourage (directly or indirectly) formation, maintenance, or growth of a union/organization of tenants, nor initiate, dominate, assist, or interfere in its formation/administration.

Such costs, evidenced by sales invoices/receipts for fertilizer and pest/disease control, plus weeding beyond customary practice, are paid out of the gross harvest and returned to the party who advanced the cost. If there is disagreement on the cost of weeding, the court determines it.

Whenever directed by the landholder, including use of fertilizer, application of insect/disease/rodent control measures, and weeding beyond customary practice, he must advance their cost, which shall be deducted from the gross produce.

Shares are of the gross produce after setting aside the amount of palay used as seed, and after deducting cost of fertilizer, pest and weed control, irrigation fees, reaping of not more than 10% of gross harvest, threshing, and (whenever applicable) broadcasting or other farm operations not listed as contributions/labor of the tenant. The remaining amount is apportioned based on participation per cent for contributions.

It is unlawful for either tenant or landholder, without mutual consent, to reap or thresh a portion before the set threshing date. Exception: if tenant needs food and landholder cannot/refuses to allow pre-threshing, tenant may reap/thresh not more than 10% of his net share in the last normal harvest after notice to the landholder or representative.

The landholder must have bona fide intention to cultivate personally or through employment of farm machinery/implements. The law requires: (1) the landholder/relative must actually cultivate personally for at least three years or employ mechanical farm implements for at least five years; otherwise bad faith is presumed and tenant may demand possession and damages. (2) At least one but not more than two years prior to filing the petition, notice must be filed with the court and given in writing to the tenant (in a language/dialect known), accompanied by: (i) certification from the Agricultural Tenancy Commission that the land is suited for mechanization, and (ii) certification from the NRRA manager that immediate resettlement will be provided if dispossession is authorized. If the tenant is not willing to be resettled, enforcement is deferred until one year after final decision. Dispossessed but not resettled tenants must be preferred for necessary labor under the new setup. A landholder may also mechanize certain operations without ejecting tenants if he petitions the court with certifications that the operations will lower cost and improve farm culture, with landholder’s share increased proportionately to tenant labor displaced.

If a tenant cannot afford counsel, the trial attorney of the tenancy mediation commission must represent him upon proper notification by the party concerned, or the court of competent jurisdiction must assign/appoint counsel de oficio for the indigent tenant.


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