Question & AnswerQ&A (DAR ADMINISTRATIVE ORDER NO. 18)
The primary guiding principle is the prevention of indiscriminate conversion of agricultural lands which may diminish CARP coverage and displace tenant and farmworker beneficiaries, while promoting optimum use of land and encouraging industrialization.
The Department of Agrarian Reform (DAR) has the exclusive authority to approve or disapprove the conversion of any agricultural land into non-agricultural uses.
These rules cover all private agricultural lands whether tenanted or not, regardless of crops or commodity produced, except those covered by Administrative Order No. 15, Series of 1989, and General Orders issued pursuant thereto.
Prime agricultural lands include all irrigated lands and other lands meeting criteria jointly determined by the DAR and the Department of Agriculture, mainly intended to preserve lands important for food production.
Conversion may be allowed if: 1) The land is for a government low-cost housing project or government-private industrial joint project (with proper certification); 2) The land is economically unfeasible and unsound for agriculture (as certified by the Provincial Agricultural Officer); or 3) The locality has become urbanized and the land will have higher economic value for non-agricultural use (as certified by HLURB deputized Zoning Administrator).
The conversion must have: 1) Endorsement through a city or municipal council ordinance; 2) Concurrence by the HLURB with the local ordinance; and 3) Consent manifested through a referendum among the directly affected communities.
Owners of private agricultural lands or their authorized representatives (including licensed land developers), farmer-beneficiaries who have fully paid their lands, and government agencies (including government-owned or controlled corporations) may apply.
Tenant-lessees are entitled to disturbance compensation equivalent to five times the average gross harvest in the last five years, either in cash, in kind, or both. Farmworkers under labor-management relations are entitled to benefits under collective bargaining agreements or labor laws.
Requirements include: 1) Four copies of Application for Conversion (DAR-LUC Form No.1); 2) Special Power-of-Attorney if applicable; 3) Certified copy of land title; 4) Location plan; 5) Certification by HLURB deputized Zoning Administrator; 6) Locational clearance for industrial/memorial use; 7) Proof of financial and organizational capability; 8) Study on viability and benefits; 9) Certification of Non-Tenancy; and 10) Proof or undertaking of payment of disturbance compensation if tenants/farmworkers exist.
The MARO verifies and investigates within 20 working days, including posting notices and interviews. Then the PARO reviews within 10 days, endorses or investigates protests. The RARO evaluates and prepares draft Orders for lands up to five hectares, while applications over five hectares go through the BLD, Undersecretary offices, and Secretary. Signed Orders are released to applicants and compliance is monitored.
Protests are investigated and resolved by the Provincial Agrarian Reform Adjudicator (PARAD) or designated Hearing Officer, and appeals go to the DAR Adjudication Board (DARAB). Protests do not automatically bar processing but may influence decisions in borderline cases.
Grounds include: a) Serious violations of conditions; b) Misrepresentation or concealment of material facts; c) Proof that conversion was to evade coverage under R.A. 6657; and d) Failure to complete development within the prescribed timeframe.
Such lands shall be placed under CARP compulsory coverage according to R.A. 6657 implementation schedule, and bonafide beneficiaries shall be reinstated. Previous compensation to beneficiaries is not refunded.