Question & AnswerQ&A (Republic Act No. 6389)
The official title is the Code of Agrarian Reforms of the Philippines.
The policy is to establish cooperative-cultivatorship among those who live and work on the land as tillers, owner-cultivatorship, and the economic family-size farm as the basis of Philippine agriculture.
The agricultural leasehold system replaces all existing share tenancy systems in agriculture.
The total charges on these loans, including interest and service fees, shall not exceed fourteen percent per calendar year.
The agricultural lessee has the preferential right of pre-emption to buy the landholding under reasonable terms and conditions.
The right of pre-emption must be exercised within one hundred eighty (180) days from the written notice of sale.
The penalty is imprisonment of not more than five years and a fine not exceeding five thousand pesos.
Yes, all lending institutions, whether public or private, must set aside at least twenty-five percent of their loanable funds for agricultural credit to qualified agrarian reform beneficiaries.
The Department is headed by a Secretary appointed by the President with consent of the Commission on Appointments. The Secretary must be a natural-born citizen of the Philippines, at least 35 years old, with proven executive ability and adequate land reform experience of at least five years.
The agricultural lessor may bear the cost and is entitled to increased rental proportionate to increased production. If the lessor refuses, the lessee(s) may bear the cost without rental increase and shall be compensated upon termination for the reasonable value of the improvement.