Policy and guiding principles
- The conversion of agricultural lands to non-agricultural uses is strictly regulated.
- Conversion may be allowed only when conditions under RA 6657 and/or RA 8435 are present and complied with.
- The State must preserve prime agricultural lands to ensure food security.
- Conversion rules must ensure optimum opportunity for all sectors of the economy and all regions to develop through the rational and sustainable use of resources.
- The conversion framework must maximize agricultural productivity, promote efficiency and equity, and accelerate modernization of agriculture and fisheries.
Key definitions established
- Agricultural land is land devoted to or suitable for cultivation of the soil, including growing crops, trees, and raising livestock, poultry, fish or aquaculture, plus harvesting and other farm activities performed in conjunction with farming operations, and not classified by law as mineral land, forest or timber, or national park, and not classified for residential, commercial, industrial or other non-agricultural uses before 15 June 1988.
- Area Highly Restricted from Conversion includes agro-industrial croplands and industrial-crop lands supporting existing agricultural infrastructure and agro-based enterprises; highlands or lands at an elevation of 500 meters or higher with potential for semi-temperate and/or high value crops; lands covered by a notice of land valuation and acquisition; irrigable lands not covered by irrigation projects with firm funding commitment; and Environmentally Critical Areas/Projects as determined by DENR.
- Area Non-Negotiable for Conversion refers to agricultural lands not eligible for conversion under Section 4.
- Conversion Moratorium is the policy under RA 8435 that prohibits conversion of specified irrigated and irrigable lands and lands with potential for high value crops delineated within the Strategic Agriculture and Fisheries Development Zones for the period from 10 February 1998 to 09 February 2003.
- Illegal Conversion includes conversion intended to avoid RA 6657 application and to dispossess tenant farmers, and changing land nature outside urban centers and city limits after RA 6657 effectivity as provided under Section 73(c) and (e) of RA 6657.
- Land Use Conversion is changing the current physical use of agricultural land into another use approved by DAR, including non-agricultural use or other agricultural use other than cultivation/planting/growing/harvesting as ordinarily defined.
- NIPAS and NPAAAD are defined through their statutory and categorical descriptions, including protected-area categories and agriculture/agro-industrial development networks.
- Premature Conversion of Agricultural Land is undertaking development that modifies/alter physical characteristics so the land becomes suitable for non-agricultural purposes without an approved Conversion Order from DAR.
- Prime Agricultural Land is land that can provide optimum and sustainable yield with minimum inputs and development costs as determined by the DA.
- Socialized Housing is housing programs/projects for the underprivileged/homeless where maximum cost per unit does not exceed HUDCC-prescribed limits and includes sites and services development, long-term financing, liberalized interest terms, and other benefits under RA 7279.
- Socio-Economic Benefit-Cost Study, ECA, ECP, SAFDZ, Special Economic Zone or Eco Zone, Strategic Agriculture and Fisheries Development Zone, Unauthorized Conversion, Watershed, Zoning, and Zoning Ordinance are defined in the rules to support eligibility and application evaluation.
Coverage: where conversion rules apply
- These rules govern all applications for conversion from agricultural to non-agricultural uses or to another agricultural use.
- Conversion may be sought for:
- conversion into residential, commercial, industrial, institutional, and other non-agricultural purposes;
- development into other agricultural activities (e.g., livestock, poultry, and fishpond) with the effect of exempting the land from CARP coverage;
- conversion into non-agricultural use other than that previously authorized; and
- conversion of agricultural lands or areas reclassified by the LGU or by Presidential Proclamation to non-agricultural uses on or after 15 June 1988, pursuant to Section 20 of RA 7160 and other pertinent laws—while reclassified prior to 15 June 1988 must follow exemption clearance guidelines from DAR.
- Conversion rules apply to lands located within the categories defined as non-negotiable, highly restricted, SAFDZ, and priority development areas/projects.
- The rules establish additional participation and documentary requirements depending on land type and project category.
Non-negotiable and restricted conversion areas
- An application involving Area Non-Negotiable for Conversion must not be given due course, even if some portions are eligible.
- The following are non-convertible:
- lands within NIPAS protected areas, including mossy and virgin forests, riverbanks, and swamp forests or marshlands as determined by DENR;
- all irrigated lands delineated by DA and/or NIA where water is available for rice and other crop production;
- irrigated lands where water is not available for rice and other crop production but are within areas programmed for irrigation rehabilitation by government;
- all irrigable lands already covered by irrigation projects with firm funding commitments as delineated by DA and/or NIA; and
- all agricultural lands with irrigation facilities.
- The following are highly restricted from conversion:
- irrigable lands not covered by irrigation projects with firm funding commitment;
- agro-industrial croplands and industrial-crop lands supporting existing agro-infrastructure and enterprises;
- highlands/areas at elevation 500 meters or above with potential for semi-temperate or high value crops;
- lands issued with notice of land valuation and acquisition, or subject of a perfected agreement under VLT/DPS under CARP; and
- lands within an ECA or involving establishment of an ECP.
- For ECA/ECP highly restricted applications, an applicant must secure an Environmental Compliance Certificate (ECC) from DENR:
- prior to application for ordinary applications; or
- prior to commencement of actual land development for applications involving housing projects.
- The PARC Land Use Technical Committee (PLUTC) must participate in deliberations when the application involves highly restricted land and the area is larger than 5 hectares, except housing projects covered by EO-45-2001.
Priority areas, housing fast-tracking, SAFDZ moratorium
- Priority development areas for land conversion include:
- specific sites in Regional Agri-Industrial Centers/Regional Industrial Centers (RAIC/RIC) identified by DTI and DA pursuant to EO-124-1993;
- Tourism Development Areas (TDA) identified by DOT pursuant to EO-124-1993;
- agricultural areas intended for Eco Zone Projects endorsed by PEZA pursuant to RA 7916;
- agricultural lands owned by government to be converted for projects of national interest as certified by the proper government agency;
- agricultural land developed for processing plants of agricultural products as certified by DA; and
- sites intended for telecommunication facilities endorsed by National Telecommunications Commission.
- Housing projects are priority development projects and must follow the fast-tracking scheme under EO-45-2001.
- For mixed-use housing and non-housing projects, housing privileges apply only if at least 80% of the land applied for conversion is used directly and exclusively for housing.
- For lands within SAFDZ, conversion rules apply under Section 9 of RA 8435:
- irrigated lands, irrigable lands with firm irrigation commitments, and lands within SAFDZ with existing or potential high-value crops are subject to a conversion moratorium for 5 years from 10 February 1998 to 9 February 2003;
- during the moratorium, conversion may be allowed only for 5% of such SAFDZ lands, subject to compliance with existing laws, rules, and regulations;
- the maximum 5% eligible for conversion from the total SAFDZ area must be jointly determined by DA and DAR upon recommendation of the Regional and National SAFDZ Committees under Rule 9.5.2 of DA-AO-6-1998 or the implementing rules and regulations of RA 8435; and
- after the moratorium, conversion may be allowed on a case-to-case basis subject to existing land use conversion laws, rules, and regulations.
Eligibility criteria and who may apply
- Conversion is allowed only if the land is not among non-negotiable conversion areas under Section 4.
- Conversion may be allowed under Section 65 of RA 6657 when the land has ceased to be economically feasible and sound for agricultural purposes or when the locality has become urbanized and the land will have greater economic value for residential, commercial, industrial, or other non-agricultural purposes.
- For SAFDZ-related conversions, evaluation must consider consistency with the natural expansion of the locality as contained in the approved physical framework and land use plan; ensuring the converted area is not the only remaining food production area; not hampering irrigation to nearby farmlands; giving priority for low productivity areas; and ensuring disturbance compensation to farmers whose livelihood is negatively affected.
- If the agricultural land was acquired under RA 6657, conversion is allowed only if the applicant is the agrarian reform beneficiary and has fully paid obligations required under Section 65 of RA 6657.
- The following may apply for conversion:
- owners of private agricultural lands or persons duly authorized by the landowner;
- agrarian reform beneficiaries after the lapse of 5 years from award, reckoned from the date of issuance of the Certificate of Landownership Award (CLOA), who have fully paid obligations and are qualified under these rules, or persons duly authorized by them; and
- government agencies (including GOCCs) and LGUs that own agricultural lands as patrimonial property.
Documentary requirements and required public notice
- Applications must be submitted in sextuplicate in six (6) separate bound folders (one original and five photocopy sets) with table of contents and page numbers, except maps and development plans which must be submitted in sextuplicate in six separate envelopes with properly labeled contents.
- Applicants must prepare two folders to be transmitted to the Municipal Agrarian Reform Officer (MARO) containing only:
- the filled-up application form; and
- the documents required under Sections 10.4, 10.5, and 10.26.
- The rules specify detailed documentary items including:
- official receipts for filing fee and inspection cost (Section 10.1);
- official receipt for proof of posting a bond in line with Section 24 (Section 10.2);
- notarized application form (Section 10.3);
- title copies, or DENR-based certifications for untitled land (Sections 10.4 and 10.4.1-10.4.2);
- title as of 15 June 1988 and successor titles (Section 10.5);
- current tax declaration (Section 10.6);
- project feasibility study (Section 10.7);
- joint venture agreement/business arrangement (Section 10.8);
- narrative development plan certified by a licensed professional (Section 10.9);
- proof of developer capability, including financial statements and corporate/SEC GIS where applicable (Section 10.10);
- socio-economic benefit-cost study (Section 10.11);
- a detailed photographic set in specified sizes and angles (Section 10.12);
- an affidavit/undertaking with required undertakings on farmers, disturbance compensation, billboards, prohibition on premature development, bond forfeiture authority, and disclosure of related actions (Section 10.13);
- MARO compliance certification (Section 10.14);
- HLURB zoning/classification certification citing ordinance and approval details (Section 10.15);
- DA certification relating to NPAAAD/SAFDZ classification and the 5% SAFDZ limit (Section 10.16), including required inventory details and balance computations when within the allowable 5%;
- DENR certification on NIPAS and ECA/ECP status (Section 10.17);
- ECC when within ECA or involving ECP (Section 10.18);
- SPA if applicant is not registered owner (Section 10.19);
- corporate/cooperative board resolution authorization requirements (Section 10.20);
- mortgagee concurrence if property is encumbered (Section 10.21);
- endorsements for priority development areas/projects (Section 10.22);
- Land Bank of the Philippines certification of fully paid obligations when applicable (Section 10.23);
- PARO certification of acquisition under VLT/DPS and full payment when applicable (Section 10.24);
- vicinity map and lot plan (Section 10.25);
- directional sketch map for ocular inspection (Section 10.26);
- development plan map requirements for socialized housing including HLURB blueprint certification (Section 10.27); and
- topographic map when within upland/hilly/mountainous area (Section 10.28).
- Applicants must submit applicable requirements at the time of filing, except housing project applicants under EO-45-2001 may defer submission of requirements under Sections 10.15 to 10.18 and follow alternative timetables.
- Applicants must post a public notice billboard on the subject property made of strong weather-resistant materials sized 1.22 meters by 2.44 meters (4 feet by 8 feet).
- If the landholding area exceeds 20 hectares, applicants must erect one (1) billboard for every twenty (20) hectares on strategic and visible points, preferably along a road.
- The billboard must be written in the local dialect and must include:
- statement of proposed conversion from agricultural to non-agricultural use;
- complete names of landowner(s), applicant(s), and developer(s);
- total area and exact location;
- filing date;
- date of posting;
- schedule of ocular inspection;
- deadline for filing protest;
- addresses of the CLUPPI and RCLUPPI and PARO for protest filing;
- address of the approving authority; and
- a blank line for the date of approval or denial for the applicant to fill upon action.
Filing location and approving authorities
- Completed applications must be filed with:
- RCLUPPI at the DAR Regional Office for applications involving lands with area less than or equal to 5 hectares, where the Regional Director is the approving authority; or
- CLUPPI at the DAR Central Office for applications involving lands larger than 5 hectares, where the Secretary is the approving authority and may delegate to any Undersecretary.
- When the application is for a parcel adjacent to a parcel previously granted a Conversion Order and the combined area exceeds 5 hectares, the approving authority is the Secretary, acting upon the recommendation of the CLUPPI.
- When the applicant owns or represents owners of two (2) or more parcels within the same barangay or adjacent barangays and their total area exceeds 5 hectares, the approving authority is the Secretary, acting upon the CLUPPI recommendation.
- When a single project proposes conversion of two (2) or more parcels of different owners within the same barangay or adjacent barangays and total area exceeds 5 hectares, the approving authority is the Secretary, acting upon the CLUPPI recommendation.
- If jurisdictional area is challenged due to error in computation and a higher authority resolves it with finality, the DAR approving authority must hold in abeyance the conversion application until the correct jurisdictional area is determined.
- Except for housing projects, PLUTC acts as recommending body when lands are larger than 5 hectares and highly restricted, or when the Secretary believes crucial inter-agency inputs are required.
- The CLUPPI must organize a Secretariat to process applications, act as the repository of records, and serve as a one-stop processing center for housing projects under EO-45-2001, while the RCLUPPI adopts docketing and document-tracing systems and forwards decisions and quarterly statistics to CLUPPI for monitoring and safekeeping.
Fees, MARO certification, ocular inspection, protests
- Filing fees are:
- PHP 1,000 for applications with area ≤ 5 hectares; and
- PHP 2,000 for applications with area > 5 hectares.
- Inspection costs are determined by land location and whether area is ≤ 5 hectares or > 5 hectares:
- For ≤ 5 hectares:
- PHP 10,000 if within the same island as the Regional Director’s office; or
- PHP 15,000 if not within the same island.
- For > 5 hectares:
- PHP 10,000 if within the main island of Luzon (except Bicol peninsula);
- PHP 15,000 if within Regions I to IV but not in the main island of Luzon;
- PHP 15,000 if in Bicol Peninsula or Visayas group of islands; or
- PHP 20,000 if in the Mindanao group of islands.
- For ≤ 5 hectares:
- Upon accomplishing the application form, applicants must furnish the MARO with a photocopy of the application form, photocopies of required title(s) under Sections 10.4 and/or 10.5, and the directional sketch map under Section 10.26.
- Upon receipt, the MARO must:
- check CARP coverage status on and around the subject land;
- inspect billboard posting;
- check presence of farmers, agricultural lessees, share tenants, farm workers, actual tillers, or occupants; and
- post notices of the application in the municipality and barangay conspicuous places.
- The MARO must issue the certificate of findings, furnishing the applicant with the original copy as required under Section 10.14.
- For housing projects under EO-45-2001, if MARO fails to act within 10 days from receipt of request for certification, the applicant must notify via affidavit; the RCLUPPI/CLUPPI must investigate and take steps to resolve the pending application, and the DAR disciplining authority must impose administrative sanctions after proper investigation.
- Ocular inspection is conducted by the RCLUPPI/CLUPPI.
- The ocular inspection team must verify:
- truthfulness of application information;
- property description including location, terrain/topography, land cover and dominant land use;
- CARP coverage status;
- whether property falls within appropriate zone in the land use plan;
- existence of farmers/agricultural lessees/share tenants/farmworkers/actual tillers/occupants;
- whether disturbance compensation has been paid or agreed to; and
- other information useful for approving/disapproving.
- The BARC and Barangay Chairman must be notified, but their presence is not mandatory.
- Protest rights exist for persons affected, including identified beneficiaries, farmers, lessees, share tenants, actual tillers, occupants, residents of adjoining properties, or communities.
- Protests must be filed within:
- 30 days from billboard posting under Section 11 or 15 days from ocular inspection, whichever is later; or
- for housing projects under EO-45-2001, within 17 days from billboard posting or 5 days from ocular inspection, whichever is later.
- The RCLUPPI/CLUPPI must furnish oppositors copies of orders/actions.
- Identified ARBs who failed to protest within the protest period due to fraud, accident, mistake, or excusable neglect may intervene at any time during pendency.
- Any protest interrupts running periods for processing conversion applications and lifts the deadline for approving or disapproving the application.
- Protests must be filed with PARO and/or RCLUPPI and/or CLUPPI as applicable.
- A protest filed before the PARO must be by personal service, not by mail.
- Upon receipt by personal service, PARO must communicate to RCLUPPI/CLUPPI before end of next working day via telephone/text and send telegram and/or radiogram as written proof.
- Within 4 working days from receipt, PARO must transmit the original protest via courier/speed delivery to RCLUPPI/CLUPPI and keep a photocopy.
- Failure by PARO to comply subjects him to appropriate disciplinary action.
- Interested persons may request copies of the application and attachments from the CLUPPI/RCLUPPI or PARO/MARO, but not the DAR inter-office endorsement/recommendation and other documents set out in DAR MC-25-1995.
- The approving authority resolves protest simultaneously with the application, and may issue a Cease and Desist Order (CDO) when necessary.
Grounds for protest and denial
- Protests and denial may be based on:
- the area is non-negotiable for conversion;
- displacement adverse effects outweigh social and economic benefits;
- misrepresentation or concealment of material facts;
- illegal or premature conversion;
- proof conversion was used to evade CARP coverage and dispossess tenant farmers;
- failure of the land to cease being economically feasible and sound for agricultural purposes, and/or the locality not becoming urbanized and the land not gaining greater economic value for residential/commercial/industrial purposes under Section 65 of RA 6657; or
- violation or application being violative of agrarian laws, rules, regulations, and other applicable statutes and administrative issuances.
Processing procedure and timelines
- Ordinary conversions follow a staged process:
- the applicant secures the Application Form from RCLUPPI or CLUPPI;
- after installing billboard(s), the applicant fills the form and produces at least five (5) clear photocopies plus the original for sextuplicate distribution;
- the original is stamped “ORIGINAL” and folders are distributed with advance copies to MARO;
- within 5 days from receipt of folders containing required title copies and directional maps, MARO keeps one folder and transmits the other to PARO;
- within 20 days from receipt, MARO checks CARP, inspects billboard, checks occupants, posts notices, prepares MARO certification, and makes available the original certification to the applicant;
- if MARO fails to issue within 20 days, applicant files an affidavit of inaction; PARO compels MARO within 5 days from receipt; if MARO still refuses without justifiable reason, PARO performs abandoned duties within 20 days and the DAR disciplining authority imposes sanctions after investigation;
- once MARO and PARO folders are furnished, applicant submits four folders with complete applicable documentary requirements to RCLUPPI/CLUPPI;
- RCLUPPI/CLUPPI reviews completeness, and once complete, requires payment of filing fee and inspection cost and posting of bond under Section 24, then accepts and fixes the Filing Date;
- within 10 days from Filing Date, RCLUPPI/CLUPPI issues Notice of Conduct of Ocular Inspection, with ocular inspection held not earlier than 10 days nor later than 20 days from issuance;
- the applicant must indicate ocular inspection date on the billboard at least 5 days before the inspection and submit proof that MARO received the notice;
- RCLUPPI/CLUPPI must accomplish an Investigation Report within 5 days from ocular inspection, including the results of dialogue if possible;
- RCLUPPI/CLUPPI deliberates and may request clarificatory questioning; PARO is invited and may submit a written comment at discretion;
- RCLUPPI/CLUPPI must forward its recommendation to the approving authority within 60 days from issuance of MARO certification, but not later than 80 days from Filing Date;
- the approving authority must resolve within 30 days from submission of the recommendation and furnish copies to the applicant and oppositors.
- When protests are filed:
- the RCLUPPI/CLUPPI orders filing of comment/reply/rejoinder and other pleadings and schedules hearings for evidence;
- after hearings, RCLUPPI/CLUPPI submits recommendation and the approving authority resolves protest simultaneously with the application.