QuestionsQuestions (Republic Act No. 6657)
RA 6657 declares as policy that the welfare of landless farmers and farmworkers receives the highest consideration to promote social justice and move the nation toward sound rural development and industrialization, establishing owner-cultivatorship. It is founded on the right of landless farmers and regular farmworkers to own directly or collectively the lands they till, subject to just compensation and ecological/development/equity considerations, and it recognizes participation of farmers, farmworkers, landowners, cooperatives, and other organizations in planning and management.
Agrarian Reform is defined as redistribution of lands to landless farmers and regular farmworkers, regardless of crop or tenurial arrangement, and it includes alternative arrangements to physical redistribution such as production or profit-sharing, labor administration, and distribution of shares of stock, provided beneficiaries receive a just share of the fruits of the land they work.
It is any agricultural land not cultivated/tilled/developed to produce any crop or devoted to any specific economic purpose continuously for three (3) years immediately prior to notice of acquisition by the government. It does not include land that has become permanently or regularly devoted to non-agricultural purposes, nor land made unproductive by force majeure or other fortuitous event if prior to the event it was previously used for agricultural or other economic purpose.
CARP covers all public and private agricultural lands regardless of tenurial arrangement or commodity produced, including: (1) alienable and disposable lands of the public domain devoted to or suitable for agriculture; (2) lands of the public domain in excess of specific limits determined by Congress; (3) other lands owned by government devoted to or suitable for agriculture; and (4) all private lands devoted to or suitable for agriculture.
Distribution is to be implemented immediately and completed within ten (10) years from the effectivity of the law.
No person may retain more than five (5) hectares of agricultural land. Three (3) hectares may be awarded to each child of the landowner if the child is at least fifteen (15) years old and is actually tilling or directly managing the farm.
The tenant has the option within one (1) year from the time the landowner manifests his choice to either (1) remain in the retained area, in which case he becomes a leaseholder and loses the right to be a beneficiary under CARP; or (2) become a beneficiary in the same or another agricultural land with similar features, in which case he loses his right as leaseholder to the retained land.
Upon effectivity of the Act, any sale, disposition, lease, management contract, or transfer of possession of private lands executed by the original landowner in violation of CARP is null and void. Transactions executed prior to the Act are valid only if registered with the Register of Deeds within three (3) months after effectivity.
Phase One includes: rice and corn lands under PD 27, all idle/abandoned lands, voluntary offers, foreclosed lands by government financial institutions, PCGG lands, and other government-owned lands devoted to/suitable for agriculture, to be acquired immediately with completion in up to four (4) years. Phase Two includes: all alienable and disposable public agricultural lands, arable public agricultural lands under agro-forest/pasture/agricultural leases already cultivated, public agricultural lands for new development/resettlement, and private agricultural lands in excess of fifty (50) hectares (excess only), completed in up to four (4) years. Phase Three begins later and covers other private agricultural lands from large to medium/small, based on schedules. The priorities aim to distribute to tillers at the earliest practicable time, enhance productivity, and consider availability of funds/resources, and priority can be advanced for designated priority areas.
Lands of the public domain leased/held/possessed by multinational corporations/entities devoted to existing and operational agri-business/agro-industrial enterprises are programmed for acquisition and distribution immediately upon effectivity, completion within three (3) years. Contracts are required to conform to constitutional limits; large foreign holdings/leases deemed amended to align with constitutional size limits, while smaller contracts may continue but not beyond Aug. 29, 1992 (or valid termination). Lands of private individuals/NGOs citizens of the Philippines are subject to compulsory acquisition upon expiration/termination, but not later than ten (10) years after effectivity, with steps taken for acquisition for immediate distribution thereafter.
Excluded are lands actually, directly and exclusively used and necessary for parks, wildlife, forest reserves, reforestation, fish sanctuaries/breeding grounds, watersheds and mangroves; national defense; school sites/campuses including experimental farm stations; seeds and seedlings research/pilot production centers; church sites/convents; mosque sites/Islamic centers; communal burial grounds/cemeteries; penal colonies and penal farms actually worked by inmates; government and private research and quarantine centers; and all lands with eighteen percent (18%) slope and over except those already developed.
Commercial farms (specified livestock/poultry/swine raising, aquaculture, fruit farms/orchards/vegetable and cut-flower farms, and cacao/coffee/rubber plantations) are subject to immediate compulsory acquisition and distribution after ten (10) years from effectivity. For new farms, the ten-year period begins from the first year of commercial production/operation as determined by the DAR. During deferment, government initiates steps necessary for acquisition upon payment of just compensation and prefers organized cooperatives/associations to manage for worker-beneficiaries.
Enterprises adopting the production-sharing scheme under Section 32 or operating under production ventures/lease/management contracts similar arrangements and farms covered by Sections 8 and 11 must execute a production-sharing plan within ninety (90) days from effectivity, under guidelines of the appropriate government agency.
In determining just compensation, factors include: cost of acquisition, current value of like properties, nature, actual use and income, sworn valuation by owner, tax declarations, and government assessors’ assessment; also considered are the social and economic benefits contributed by farmers/farmworkers and government, and non-payment of taxes or loans secured from government financing institutions.
LBP may compensate in amounts agreed or as finally determined by court. Compensation may be: cash with specified percentage cash depending on land size (35% cash for lands up to 24 ha; 30% cash for above 24 to 50 ha; 25% cash for above 50 ha excess portion), with the balance in government financial instruments negotiable anytime; or through shares of stock in government-owned/controlled corporations, LBP preferred shares, physical assets/other qualified investments; tax credits; and/or LBP bonds with features such as market interest rates aligned with 91-day treasury bill rates, 10% annual maturity for 10 years, transferability/negotiability, and allowable uses. If landowner foregoes cash, payment correspondingly increases in bonds.
Priority is given (as much as possible) to landless residents of the same barangay, then municipality, in order: agricultural lessees and share tenants; regular farmworkers; seasonal farmworkers; other farmworkers; actual tillers/occupants of public lands; collectives/cooperatives; and others directly working on the land. Children of landowners qualified under Section 6 are given preference; tenant-tillers are not ejected/removed; and a beneficiary must be willing, able, and apt to cultivate and make land productive.
Awarded lands may not be sold, transferred, or conveyed except through hereditary succession, to the government, to LBP, or to other qualified beneficiaries for ten (10) years. After that, the law generally restricts transferability, with limited rights of children/spouse to repurchase within two (2) years from government/LBP availability notice. If not fully paid, transfers can occur only with DAR approval to heirs or other beneficiaries who cultivate the land; otherwise, it is transferred to LBP with compensation for amounts already paid and value of improvements.