Question & AnswerQ&A (LETTER OF INSTRUCTION NO. 143)
The main policy is that the actual tillers of the land, the tenant-farmers in agricultural land devoted to rice and corn production, shall be the actual owners of the land they till.
Small landholdings are defined as landholdings of 24 hectares and less.
Absentee landowners are those who do not till their landholdings and have a source of income other than their landholding(s), except for those who are absent due to circumstances beyond their control such as military service or other government service.
Landowners who were compelled to abandon tilling due to fortuitous circumstances, government or Armed Forces service, and who have actually tilled the land beforehand are not considered absentee landowners.
Payments include payment by tenant-farmers of the total cost of land with 6% annual interest over 15 years, cash payment with balance in 25-year tax-free Land Bank bonds, payment in preferred shares and bonds, government stock exchanges, annuities or pensions with insurance, and other modes approved by the Board of Directors and the President.
The government encourages the formation of a cooperative composed of both the landowner and tenants to share income derived from the land based on their cooperative participation.
The Department of Agrarian Reform is responsible for ascertaining absentee landowners, conducting surveys on sources of income, identifying history of land tilling, and feasibility of cooperatives, among other tasks for the implementation of land reform.
They must determine the absentee landowners, those with or without other income sources, those with a history of tilling before withdrawal, potential for cooperatives, land emotional attachments, government employment status, and actual income from agricultural lands.
They shall be compelled to transfer their landholdings to tenant-farmers regardless of the landholding size.
Agricultural lands principally devoted to rice and corn production are covered by this program.