QuestionsQuestions (Republic Act No. 7881)
RA 7881 amends Section 3(b) of RA 6657 to define “Agriculture, Agricultural Enterprise or Agricultural Activity” as the cultivation of the soil, planting of crops, growing of fruit trees (including harvesting), and other farm activities and practices performed by a farmer in conjunction with farming operations, whether done by persons natural or juridical.
Lands actually, directly and exclusively used for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, watersheds and mangroves are exempt.
Private lands actually, directly and exclusively used for prawn farms and fishponds are exempt from CARP coverage, provided they have not been distributed and no CLOA has been issued to agrarian reform beneficiaries under the CARP.
A simple and absolute majority of the actual regular workers or tenants must consent to the exemption within one (1) year from the effectivity of RA 7881; if they do not agree, the fishponds/prawn farms shall be distributed collectively to worker-beneficiaries/tenants to form a cooperative or association.
No further consent of farm workers is necessary for exemption; however, Section 32-A (Incentives) applies.
Lands actually, directly and exclusively used and found necessary for national defense; school sites and campuses including experimental farm stations for educational purposes; seeds and seedlings research and pilot production centers; church sites and convents appurtenant thereto; mosque sites and Islamic centers appurtenant thereto; communal burial grounds and cemeteries; penal colonies and penal farms actually worked by inmates; government and private research and quarantine centers; and all lands with 18% slope and over, except those already developed.
Commercial farms devoted to saltbeds, fruit farms, orchards, vegetable and cut-flower farms, and cacao, coffee, and rubber plantations are subject to immediate compulsory acquisition and distribution after ten (10) years from the effectivity of RA 6657 (as amended), or for new farms, ten (10) years from the first year of commercial production and operation as determined by DAR.
The Government must initiate steps necessary to acquire the lands, paying just compensation for the land and improvements thereon, preferably in favor of organized cooperatives or associations that will then manage the lands for the workers-beneficiaries.
Owners/operators of fishponds and prawn farms must execute within six (6) months from effectivity an incentive plan with regular workers/worker organizations, distributing 7.5% of their net profit before tax from operations within sixty (60) days after the fiscal year end as compensation to regular and other pond workers over and above existing compensation.
Books are subject to periodic audit or inspection by certified public accountants chosen by the workers.
It does not apply if the converted land size does not exceed the landowner’s retention limit.
No conversion except in situations where the provincial government with concurrence of BFAR declares a coastal zone suitable; DENR must allow lease and development; but the declaration does not apply to environmentally critical projects/areas as specified in Proclamation No. 2146 (tied to EIS system). Approval must follow DAR and BFAR guidelines; small-farmer cooperatives/organizations are given preference in awarding Fishpond Lease Agreements (FLAs).
No conversion of more than five (5) hectares of private lands is allowed after RA 7881, except when use is more economically feasible and sound for fishpond/prawn farms as certified by BFAR and when a simple and absolute majority of regular farm workers or tenants agree; then DAR may approve applications for change of use.
BFAR must inventory all government and private fishponds and prawn farms within one (1) year and promote sustainable management; no lease under Section 65-A may be granted until after completion of the inventory.
Effluent standards, pollution charges, and pollution control measures (including limits on fertilizers, pesticides, and chemicals) to be established by FPA and EMB and other agencies; and compliance with existing water utilization regulations, primarily PD 1067 (Water Code).
A portion of the fishpond area fronting the sea, sufficient to protect the environment, must be established as a buffer zone and planted with specified mangrove species determined in consultation with DENR regional office; DENR Secretary provides penalties and rules for implementation.
Changing crops to commercial or high value crops is not considered conversion in use or nature of the land; however, it must not prejudice tenants/leaseholders’ rights, and consent of a simple and absolute majority of affected farm workers (if any) must first be obtained.
Sale and/or transfer of agricultural land is permitted when such sale/transfer/conveyance is necessary due to a bank’s foreclosure of the mortgaged land.