Definitions of Key Terms
- Agricultural land: land suitable for farming, tree planting, livestock, aquaculture, excluding lands classified otherwise before June 15, 1988.
- Areas Highly Restricted from Conversion: agro-industrial lands, highlands (500m+), environmentally critical areas, irrigable lands without firm irrigation projects.
- Areas Non-Negotiable for Conversion: listed agricultural lands non-eligible for conversion under Section 4.
- Conversion Moratorium: five-year moratorium (1998-2003) on conversion of key agricultural lands.
- Illegal Conversion: landowner’s conversion to avoid CARP coverage or dispossess tenant farmers.
- Land Use Conversion: change of agricultural land to non-agricultural or other agricultural uses approved by DAR.
- Environmentally Critical Areas and Projects are specified, including national parks, habitats of endangered species, and heavy industry projects.
- Strategic Agriculture and Fisheries Development Zone (SAFDZ): protected zones with restrictions on conversion.
Coverage of the Rules
- Applies to all applications converting agricultural land to non-agricultural or other exempt agricultural uses.
- Conversion disallowed in non-negotiable areas such as NIPAS protected lands and irrigated lands.
- Highly restricted areas require additional environmental clearances.
Conversion Policies and Criteria
- Conversion allowed only if land is not non-negotiable and either economically unsound for agriculture or locality is urbanized.
- Conversions within SAFDZ limited to 5% during moratorium.
- Applicants must have fully paid obligations if land was acquired under AGRP.
Eligible Applicants for Conversion
- Private landowners and authorized representatives.
- Agrarian reform beneficiaries after five years from award and full payment of obligations.
- Government agencies and LGUs owning agricultural lands.
Documentary Requirements for Conversion Application
- Payment receipts for filing and bond posting.
- Notarized application form with detailed project and developer information.
- Certified land titles or equivalent DENR certifications.
- Project feasibility, development plans, socio-economic benefit-cost study.
- Photographs of the property and billboard postings.
- Certification from MARO, HLURB, DA, DENR as applicable.
- Various endorsements and clearances depending on project type.
Public Notification Requirements
- Billboard(s) posted on subject property showing application details including filing date, location, schedule of inspection, and protest deadlines.
- Number of billboards depends on property size.
Filing and Approval Process
- Applications filed with RCLUPPI or CLUPPI depending on land size.
- Application fees and inspection costs are based on size and location.
- MARO certifies CARP coverage status, billboard posting, presence of tenants.
- Ocular inspection and possible hearings for clarifications.
- Processing timelines from filing to final decision stipulated.
- Protests allowed within 15 to 30 days depending on project type.
- Protests interrupt processing timelines.
Special Procedures for Priority Development and Housing Projects
- Priority areas include agri-industrial centers, eco zones, tourism areas.
- Housing projects fast-tracked under EO-45-2001.
- MARO certification timelines shortened for housing projects.
- Provisional Conversion Order may be issued pending some environmental clearances.
Bonds Required
- Cash bond of 2.5% or GSIS surety bond of 15% of zonal value to prevent premature conversion.
- Performance bond posted within 5 days of Conversion Order issuance.
- Bond forfeited for premature or illegal conversion.
- Certain socialized housing and resettlement projects exempt from bond posting.
Compensation and Reimbursement
- Disturbance compensation to affected farmers equals at least five times average gross harvest.
- Compensation may be in cash, kind, or both.
- Government reimbursed for investments in SAFDZ lands upon conversion.
Conversion to Homelot
- Allowed for residential use not exceeding 500 square meters owned by applicant.
- Simplified documentary and procedural requirements apply.
Issuance and Conditions of Conversion Order
- Specifies details such as applicant, land description, use, and area.
- Conditions include no development without permits, posting of performance bond, annotation on title.
- Development to commence within one year, complete within five years.
- Quarterly reporting and DAR access to monitor compliance.
- Conversion Order not a ground for eviction without other legal basis.
Appeals and Motions for Reconsideration
- Single motion for reconsideration allowed within 15 days.
- Appeal to Secretary or Office of the President within 15 days after decision.
- Pauper litigant provisions exempt farmers and direct workers from appeal fees.
Revocation or Withdrawal of Conversion Order
- Petition to revoke or withdraw within 90 days from discovery of grounds but not beyond 1 year from issuance.
- Grounds include violation of terms, misrepresentation, unauthorized conversion.
- Expeditious non-litigious proceedings with ability to conduct ocular inspection.
- Revocation restores land to agricultural status and CARP coverage.
Monitoring and Enforcement
- Provincial/City Task Forces on Illegal Conversion monitor and investigate.
- DAR officials empowered to investigate and file complaints.
- Administrative sanctions include revocation, blacklisting, cease and desist orders, and bond forfeiture.
- Criminal penalties for illegal conversion include imprisonment of 1 month to 3 years or fines.
- Premature conversion penalties under RA 8435 include imprisonment of 2 to 6 years and fines.
Penalties and Sanctions
- Administrative sanctions for violations include revocation, blacklisting, disapproval of future applications.
- Specific sanctions applicable to DAR officials for failure to act promptly or properly.
- Criminal sanctions impose imprisonment and/or fines for illegal or premature conversion.
General and Final Provisions
- Rules apply prospectively; pending applications governed by existing rules.
- Prior inconsistent DAR issuances amended or repealed.
- Separability clause for any unconstitutional provisions.
- Effectivity set ten days after publication in two newspapers.