Question & AnswerQ&A (DAR ADMINISTRATIVE ORDER NO. 11)
DAR Administrative Order No. 11, series of 1994 revises the Rules and Regulations covering the valuation of lands voluntarily offered or compulsorily acquired under the Comprehensive Agrarian Reform Law (Republic Act No. 6657). It aims to effectively carry out the intents and purposes of the law regarding land valuation.
When both CS and CNI are not present and only Market Value (MV) is applicable, the formula for Land Value (LV) is LV = MV x 2, but it shall not exceed the lowest value of land within the same estate or barangay or municipality approved by LBP within one year from receipt of claimfolder.
The computed value shall not exceed the Landowner's Offer (LO) in case of VOS. Furthermore, the LO's offer shall be grossed up from the date of the offer up to the date of receipt of the claimfolder by LBP for processing.
It refers to the date when the Land Bank of the Philippines determines that the claimfolder is complete with all required documents and valuation inputs duly verified and validated, and is ready for final computation or processing.
The formula is: Grossed-up Valuation Input x Regional Consumer Price Index (RCPI) Adjustment Factor. The RCPI Adjustment Factor is the ratio of the RCPI for the month as of date of receipt of claimfolder or the most recent RCPI prior to receipt of claimfolder, to the RCPI for the month issued as of the date/effectivity/registration of the valuation input.
AGP is the latest available 12 months' gross production immediately preceding the date of offer or notice of coverage. SP is the average of the latest available 12 months' selling prices prior to receipt of claimfolder by LBP, gathered preferably from the barangay or municipality where the property is located, or in their absence, from the province or region.
If the landowner fails to submit the statement certified by the MARO or if the data cannot be verified from farmers, the LBP may adopt any available industry data or conduct an industry study on the specified crop to determine production, cost, and net income of the landholding.
For crops with cycles longer than one year, at least one normal crop cycle is required to compute AGP. For crops with cycles less than one year, two normal crop cycles are needed.
Comparable sales transactions should have been executed between January 1, 1985, to June 15, 1988, and registered between January 1, 1985, to September 13, 1988.
AC is relevant if the property was acquired through purchase or exchange within the period January 1, 1985, to June 15, 1988, registered within the stated period, and if the property's condition is substantially similar to the date of offer or coverage. It is used as an additional input to determine Comparable Sales and is grossed up to the date of claimfolder receipt by LBP.
Both MVM and MV shall be grossed up from the date of the latest appraisal report or effectivity of Tax Declaration, respectively, up to the date of receipt of claimfolder by LBP for processing, following the RCPI adjustment formula.
No, the landowner shall not be compensated or paid for improvements introduced by third parties such as the government or farmer beneficiaries.
It took effect ten (10) days after its publication in two national newspapers of general circulation pursuant to Section 49 of Republic Act No. 6657.