QuestionsQuestions (EXECUTIVE ORDER NO. 229)
CARP covers, regardless of tenurial arrangement and commodity produced, all public and private agricultural lands provided in Proclamation No. 131, including other lands of the public domain suitable for agriculture when applicable.
Land acquisition and distribution are implemented under EO 229 for all covered lands, subject to Congress-set priorities and reasonable retention limits, and considerations of ecological, developmental, or equity factors; acquisition must be accompanied by payment of just compensation.
Lands actually used and found necessary for national defense, school sites and campuses, religious purposes, penal colonies, and government research and quarantine centers are exempt.
It requires all owners, lessees, or managers of agricultural lands (including government entities) to file a sworn statement within 180 days from effectivity, to document property details, tenant/farmworker information, crops as of June 1, 1987, existing mortgages/leases/management contracts, assessed market value, and the owner’s declared fair market value for possible acquisition.
The government bases valuation for landowner compensation on the City/Provincial Assessor’s value; thereafter, the real property tax payable is based on the owner’s declared current fair market value (beginning the quarter immediately following registration, as provided in the text).
After identification, DAR publishes and notifies the landowner, including an offer to pay under Section 6; landowner has 15 days to accept or reject; if accepted, LBP pays within 15 days after surrender of title/documents; if rejected/no reply, DAR conducts administrative summary proceedings to determine compensation; decision is established; LBP sets up a trust fund; after trust fund establishment or acceptance, DAR takes immediate possession and Register of Deeds issues a TCT in the name of the Republic as trustee for qualified beneficiaries; DAR then redistributes the land.
Any party who disagrees may bring the matter to the proper court for determination of just compensation.
DAR takes immediate possession after establishment of the trust fund or upon receipt of landowner’s acceptance of the offer; then DAR formally notifies the Register of Deeds for issuance of the TCT in the name of the Republic as trustee for beneficiaries.
(a) Bond payment over 10 years (10% cash immediately, balance as LBP bonds with interest aligned with 91-day treasury bills rates), with annual maturities of one-tenth face value; (b) Direct payment in cash or kind by farmer-beneficiaries on mutually agreed terms subject to DAR approval; (c) Other modes as may be prescribed or approved by PARC.
LBP shall assist with investment information and counseling, conversion/exchange of LBP bonds to/from government stocks or assets, and marketing of LBP bonds.
Landowners may enter a voluntary agreement for direct transfer to appropriate beneficiaries under terms acceptable to both and subject to DAR approval; guidelines include that beneficiaries are those eligible to purchase in case of government acquisition, transferred area is at least the area the government would otherwise acquire, and terms are understood by both parties; the agreement must include sanctions for non-compliance and must be binding and irrevocable, recorded and monitored by DAR.
Such transactions are exempt from capital gains tax and other taxes and fees.
Corporate landowners may grant their workers and other qualified beneficiaries the right to purchase a proportion of the corporation’s capital stock corresponding to the land assets in relation to total assets, and grant additional compensation for this purpose. PARC approval of a plan and its initial implementation is deemed compliance.
Existing leases and management contracts registered prior to approval may continue under original terms but not beyond 5 years; renewal requires qualified beneficiaries’ agreement. If lease rentals are not acceptable upon distribution/award, rentals are renegotiated with BARC assistance; if no agreement, DAR determines. Registered mortgages and other claims are assumed by government up to landowner compensation value.
Beneficiaries pay in 30 equal annual payments at 6% per annum interest; first payment due one year after resale. There is a 2% interest rebate for amortizations paid on time. Annual amortizations cannot exceed 10% of the land’s annual value of gross production; if they exceed, LBP reduces interest and/or principal to make repayments affordable. Incentives exist for prepayments; LBP holds a lien (mortgage) and may foreclose when unpaid past due reaches the equivalent of 3 annual amortizations.
Upon land transfer, each beneficiary who actually farms the land is eligible for a production loan to finance one crop cycle, renewable upon repayment, subject to LBP terms case-by-case.
Individuals/entities operating leased agricultural lands with gross sales exceeding P5,000,000 per annum must execute a production sharing salary plan giving farmworkers at least 2.5% of gross sales as compensation over and above their current compensation, but not more than 100% of the regular and annual compensation.
DAR has quasi-judicial powers to determine and adjudicate agrarian reform matters and has exclusive original jurisdiction over implementation matters except those under DENR and DA’s exclusive jurisdiction. DAR may punish contempt and issue subpoenas/writs. Decisions may be appealed to Regional Trial Courts in proper cases but are immediately executory notwithstanding the appeal.