Question & AnswerQ&A (DAR ADMINISTRATIVE ORDER NO. 4)
The purpose is to protect and improve the tenurial and economic status of tenant-tillers in agricultural lands within retained areas and lands not yet acquired pursuant to R.A. 6657 by determining and fixing lease rentals in accordance with Section 34 of R.A. 3844, as amended.
All share-crop tenants of agricultural lands covered by this Order are automatically converted into agricultural lessees as of June 15, 1988.
The lease rental shall not be more than 25% of the average normal harvest during the three agricultural years immediately preceding June 15, 1988, after deducting costs for seeds and harvesting-related expenses.
The initial rental is based on the average normal harvest during the actual years the land was cultivated or on the harvest of the first agricultural year if it is considered normal. After three normal harvests, the final rental is based on that average.
The Municipal Agrarian Reform Officer (MARO) is responsible for determining and fixing the lease rental based on available production records in the locality.
The lease rental may be increased proportionately to the increase in productivity resulting from the capital improvements, which are permanent and tangible improvements on the land.
All leasehold agreements must be in writing using the prescribed leasehold contract form, duly notarized, and registered with the Municipal Treasurer's Office.
The Rules apply to all tenanted agricultural lands including retained areas under R.A. 6657 and P.D. 27, tenanted lands not yet acquired under CARP, and all tenanted areas under Section 10 of R.A. 6657 covered by this Order.
They take effect on the first agricultural year immediately following the leasehold relationship with specific dates varying by crop type and applicable laws, e.g., June 15, 1988, for coconut and permanent crops.
They shall conduct a mediation conference where both parties submit production data for the three agricultural years preceding the leasehold. Then the MARO and BARC compute the rental based on Section 34 of R.A. 3844 using the prescribed formula.
They may appeal to the DAR Adjudication Board (DARAB) within fifteen (15) days from receipt of the order; if no appeal is filed, the order becomes final and executory.
Documents/evidence about tenure relationship and production data, minutes of conferences/meetings, worksheets used in computation, and an investigation report if any.
It takes effect ten (10) days after its publication in two national newspapers of general circulation.