QuestionsQuestions (EXECUTIVE ORDER NO. 405)
It vests in the Land Bank of the Philippines (LBP) the primary responsibility to determine land valuation and compensation for private agricultural lands covered under R.A. No. 6657 (Comprehensive Agrarian Reform Law), in order to streamline procedures for acquisition and distribution.
Private lands suitable for agriculture that are covered under either the Voluntary Offer to Sell (VOS) or Compulsory Acquisition (CA) arrangements under R.A. No. 6657.
DAR must make use of the land valuation and compensation determined by LBP in the performance of its functions.
LBP must inform DAR of the transfer of titles so DAR may proceed with the distribution of the lands to qualified agrarian reform beneficiaries within the time specified by law.
DAR continues its functions, particularly the identification of priority landholdings for coverage under the Comprehensive Agrarian Reform Program.
EO 405 assigns to LBP the primary determination, but the valuation criteria still come from R.A. No. 6657, Sec. 17, which includes cost of acquisition, current value of like properties, nature/actual use/income, owner’s sworn valuation, tax declarations, and government assessment, among others.
Cost of acquisition; current value of like properties; nature, actual use and income; owner’s sworn valuation; tax declarations; government assessors’ assessment; social and economic benefits contributed by farmers/farm-workers and government; and non-payment of taxes or loans secured from any government financing institution (as additional factors).
Compensation is either amount agreed upon by the landowner and DAR and LBP in accordance with Sections 16 and 17, or as finally determined by the court as just compensation.
No. Section 4 of EO 405 expressly states it shall not be construed to diminish the rights and remedies of landowners and agrarian reform beneficiaries under R.A. No. 6657.
It assigns LBP the main duty to determine valuation and compensation, while DAR retains functions under R.A. No. 6657 (e.g., identification of priority landholdings) and landowners/beneficiaries retain rights and remedies.
LBP was authorized to augment its manpower resources for implementing EO 405.
DAR is required to use LBP’s determination of land valuation and compensation in performing its functions and, upon notification from LBP, to proceed with distribution within the period specified by law.
It took effect immediately (Section 5).
It designates LBP as the primary appraising/valuation authority for just compensation, but the valuation must still follow the statutory criteria for just compensation under R.A. No. 6657 (e.g., Sec. 17) and compensation may be subject to court determination if needed (Sec. 18).
Compensation may be the amount agreed upon by the landowner, DAR, and LBP, consistent with R.A. No. 6657 and its valuation criteria.