Title
Rules on Exemption of Fishponds from Agrarian Reform
Law
Dar Administrative Order No. 03
Decision Date
May 10, 1995
This administrative order establishes rules for exempting fishponds and prawn farms from the Comprehensive Agrarian Reform Law, mandating profit-sharing incentives for workers and outlining procedures for landowners to apply for exemption while ensuring worker rights and compliance monitoring.

Questions (DAR ADMINISTRATIVE ORDER NO. 03)

It is issued pursuant to R.A. No. 6657 (CARL) as amended by R.A. No. 7881, and it provides the rules and regulations on exemption/exclusion of fishponds and prawn farms from CARP coverage.

Private agricultural lands actually, directly, and exclusively used for prawn farms and fishponds as of March 12, 1995, provided they have not been distributed and no CLOAs have been issued to ARBs.

It means a vote of fifty percent (50%) plus one of the total regular fishpond and prawn farm workers.

The fishponds and prawn farms shall be distributed collectively to the worker-beneficiaries or tenants, who must form a cooperative or association to manage the same.

Yes. The Land Bank of the Philippines shall extend financial assistance through its countryside loan assistance program.

The property becomes subject to CARP.

Acts of harassment intended to eject or remove workers/tenants or cause loss of rights and benefits are sanctioned and dealt with under existing laws, rules, and regulations.

They may either (1) remain as workers in the exempted area and retain rights/benefits of farm workers under existing laws, decrees, and executive orders, or (2) become beneficiaries in other agricultural lands.

Examples include: ownership documents/monuments of title (OCT/TCT); proof of business permit or proof of fishpond/prawn farm ownership; certified true copies of income tax returns with audited financial statements for three years prior to March 8, 1995; SEC certificate if corporate; location plan/vicinity map; sketch plan of improvements; and a Profit Incentive Plan containing specified information including names of employees as of March 12, 1995.

DARPO must complete the ocular inspection/investigation and related procedures within 30 days from receipt of the application.

A three-man committee is created by the PARO to conduct secret balloting, composed of: one representative from the fishpond and prawn farm workers; an agrarian reform technologist; and the landowner or authorized representative—supervised by the MARO.

Owners/operators must execute within six (6) months from the effectivity of R.A. No. 7881 a Profit Incentive Plan providing regular workers a 7.5% share of net profit before tax, distributed within 60 days after end of fiscal year.

Seven-and-a-half percent (7.5%) of the net profit before tax from the operation of the fishponds or prawn farms.

They are first settled through mediation/conciliation pursuant to A.O. No. 8 (s. 1994). If mediation/conciliation fails, the issue is resolved by the Regional Director with a right of appeal to the Office of the Secretary.

It takes effect ten (10) days after publication in two national newspapers of general circulation, and inconsistent issuances are revoked, amended, or modified.


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