Question & AnswerQ&A (Republic Act No. 2263)
Leasehold tenancy exists when a person personally or with the aid of immediate farm household members undertakes to cultivate agricultural land owned or legally possessed by another, in consideration of a fixed amount in money, produce, or both.
Agricultural year is the period necessary for raising seasonal agricultural products, including land preparation, sowing, planting, harvesting, and threshing of the crop. For crops like coconuts and coffee with multiple harvests, it means from land preparation to the first harvest, and then harvest to harvest thereafter.
Upon the tenant's death or incapacity, the tenancy continues between the landholder and a member of the tenant's immediate farm household related within the second degree by consanguinity who will cultivate the land personally, unless the landholder cultivates it himself or through mechanical means.
A tenant has the right to change the tenancy contract from share tenancy to leasehold tenancy and vice versa, or from one crop-sharing arrangement to another, by exercising this right at least one month before the next agricultural year after the contract's expiration if it is registered; otherwise, before the year the change shall take effect.
Tenants have the right to demand a home lot suitable for dwelling not exceeding 3% of the area of his landholding and no more than 1,000 square meters, located conveniently within the landholder's property, where they can build a dwelling, raise livestock, vegetables, and engage in minor industries.
The landholder is prohibited from mortgaging the tenant's share in the crops, and any mortgage on the land or crop shall not affect the tenant's share. The landholder also cannot discourage the formation or growth of tenant unions but cannot interfere or control them either.
Dispossession is only allowed for causes enumerated in the Act and authorized by the court. One key cause includes the landholder or relative's bona fide intention to personally cultivate the land or through machinery, with required prior notice and certifications for mechanization and resettlement plans.
Violations of certain tenancy provisions entail a fine not exceeding two thousand pesos, imprisonment up to one year, or both. Persons inducing others to violate these provisions in bad faith face higher penalties up to four thousand pesos or two years imprisonment or both.
It means that more than 60% of the tenants' labor will be displaced by farm machinery and the use of mechanized implements will lower production costs.
The landholder must bear the expenses of transferring the tenant's house and improvements to the newly designated site. If the tenant disagrees to the transfer, the matter must be submitted to the court for determination.