Question & AnswerQ&A (Republic Act No. 9502)
DENR has jurisdiction over the administration and management of grazing lands of the public domain and aims to promote development, improvement, and sustainable use of grazing land through appropriate management strategies and grassland improvement schemes.
FLGMA is a production sharing agreement between a qualified person, association and/or corporation and the government to develop, manage, and utilize grazing lands.
Areas must be forest lands sub-classified as grazing lands with: at least 250 hectares contiguous area, at least 75% slope not more than 50%, dominant vegetation is grass, forage production of at least 500 kg air-dry per hectare, and free from private rights or forest licenses.
Only Filipino citizens of legal age, corporations/associations with at least 60% Filipino ownership, and financially and technically capable persons or entities may apply.
Minimum area is 50 hectares; maximum area is 500 hectares for individuals and 2,000 hectares for associations, cooperatives, or corporations.
Cancellation grounds include violation of agreement provisions, non-compliance with management plans, failure to submit annual grazing reports, and failure to pay user's fees.
The agreement covers 25 years and is renewable for another 25 years unless terminated for cause by the Secretary of DENR.
User’s fee is to be paid annually in the first month of the succeeding year. Penalties for late payment are 1% per month. Failure to pay results in doubling the fee and cancellation if unpaid for two consecutive years.
A 25-year management plan and 5-year operational plan prepared with technical assistance of a registered forester, including environmental studies such as Initial Environmental Examination or Environmental Impact Assessment, and issuance of Environmental Compliance Certificate.
Economic Rent (ER) = (Total Revenue (TR) - Total Cost (TC)) - Margin for Profit and Risks (MPR), where MPR is 30% of TC.