Question & AnswerQ&A (Republic Act No. 7881)
Agriculture, Agricultural Enterprise or Agricultural Activity means the cultivation of the soil, planting of crops, growing of fruit trees, including the harvesting of such farm products, and other farm activities and practices performed by a farmer in conjunction with such farming operations done by persons whether natural or juridical.
Lands actually, directly and exclusively used for parks, wildlife, forest reserves, reforestation, fish sanctuaries, breeding grounds, watersheds, mangroves, prawn farms and fishponds (with conditions), lands necessary for national defense, school sites, church sites, mosque sites, communal burial grounds, penal colonies, government and private research centers, and lands with 18% slope and over (except those already developed) are exempt.
If prawn farms and fishponds have been subjected to the Comprehensive Agrarian Reform Law through voluntary offer to sell, commercial farms deferment, or notices of compulsory acquisition, a simple and absolute majority of the actual regular workers or tenants must consent to the exemption within one year from the effectivity of the Act.
The fishponds or prawn farms shall be distributed collectively to the worker-beneficiaries or tenants who shall form a cooperative or association to manage the same.
Commercial farms such as saltbeds, fruit farms, orchards, vegetable and cut-flower farms, cacao, coffee, and rubber plantations are subject to immediate compulsory acquisition and distribution after ten years from the effectivity of the Act, with the government acquiring these lands preferably in favor of organized cooperatives or associations.
They are mandated to execute an incentive plan distributing 7.5% of their net profit before tax from the operation of the fishpond or prawn farms to regular and other pond workers within 60 days at the end of the fiscal year, over and above their current compensation.
Yes, to safeguard workers' rights under the incentive plan, the books of the owners shall be subject to periodic audit or inspection by certified public accountants chosen by the workers.
Conversion is only allowed where the provincial government with concurrence of the Bureau of Fisheries and Aquatic Resources (BFAR) declares a coastal zone suitable for fishpond development, with environmental protections and guidelines by DENR, DAR, and BFAR. Small-farmer cooperatives and organizations have preference for lease awards.
Yes, no conversion of more than five hectares of private lands to fishponds and prawn farms is allowed after the passage of the Act, except with BFAR certification of economic feasibility and consent of a simple and absolute majority of regular farm workers or tenants.
The Bureau of Fisheries and Aquatic Resources (BFAR) must undertake and finish an inventory of all government and private fishponds and prawn farms within one year from the effectivity of the Act and promote sustainable management and utilization. No lease may be granted under Section 65-A until after the inventory is completed.
A buffer zone in fishpond areas fronting the sea must be planted with mangrove species to protect the environment, with DENR providing penalties for violations and rules for implementation.
Changing to commercial or high-value crops is not considered conversion, provided it does not prejudice tenant or leaseholder rights, and consent of a simple and absolute majority of affected farm workers is obtained.
Sale or transfer of agricultural land made necessary due to a bank's foreclosure of the mortgaged land is permitted, notwithstanding provisions to the contrary in Section 73, paragraph (E).
The Act takes effect fifteen (15) days after its publication in at least two newspapers of general circulation.