Question & AnswerQ&A (ADMINISTRATIVE ORDER NO. 363)
Non-negotiable areas for conversion include protected areas under the National Integrated Protected Areas System (NIPAS), all irrigated lands with water available or programmed for irrigation rehabilitation, and all irrigable lands covered by irrigation projects with firm funding commitments as delineated by the Department of Agriculture or the National Irrigation Administration.
Highly restricted areas include irrigable lands not covered by irrigation projects with firm funding commitments; agro-industrial croplands supporting economic viability of agro-based enterprises; highlands above 500 meters elevation suitable for semi-temperate crops; lands under agrarian reform acquisition or voluntary land transfer agreements; and environment critical areas identified by the DENR.
Conversion on highly restricted areas may only be allowed upon compliance with existing laws and regulations, including an approved social benefit cost analysis by the Department of Agriculture and environmental clearances such as the Environmental Impact Assessment or Environmental Compliance Certificate from DENR.
HLURB requires that there be an approved Comprehensive Land Use Plan by the HLURB or relevant local legislative body, certifications from HLURB specifying zoned agricultural lands area, certifications from NIA verifying irrigation status, certifications from DAR that lands are not covered by agrarian reform notices, and certifications from DENR that lands are alienable, disposable, and not needed for forestry.
The Department of Agriculture is responsible for updating and revising the NPAA including maps, identifying criteria for certifying cessation of economic viability for agriculture, designing social benefit cost analysis in coordination with other agencies, and working through the National Irrigation Administration to prepare and update maps of irrigated and irrigable lands protected from conversion.
Penalties apply for acts such as converting agricultural lands to non-agricultural uses to avoid agrarian reform, illegal sale or transfer of agricultural lands, illegal squatting or constructions in protected areas, misrepresentation in conversion applications, failure to comply with socialized housing requirements, and undertaking environmentally critical activities without proper clearance, among others, as prescribed under various laws and administrative issuances including RA 6657 and RA 7586.
Premature conversion refers to undertaking development activities that change the physical characteristics of agricultural land to non-agricultural uses without an approved order of conversion from the Department of Agrarian Reform.
Only the President, upon the favorable recommendation of the Cabinet Cluster on Agro-Industrial Development, can approve conversions of non-negotiable areas. For irrigated lands affected, the owner/developer must replace the affected area with an equal area of irrigated land without adversely affecting the irrigation system.
They must pay sufficient disturbance compensation to farmers or beneficiaries affected by conversion. They are also encouraged to provide capital for alternative livelihood, skills training, relocation, employment priority, and investment partnerships to support affected farmers and stakeholders.