Title
Agricultural Tecy Act of 1954
Law
Republic Act No. 1199
Decision Date
Aug 30, 1954
The Agricultural Tenancy Act of the Philippines establishes fair and just agricultural tenancy relations between landholders and tenants, protecting their rights, ensuring equitable division of produce and income, and promoting efficient agricultural production and rural development.

Law Summary

Definition of Agricultural Tenancy

  • Physical possession of agricultural land by a tenant belonging to or legally possessed by another.
  • Production is done by tenant and immediate family labor.
  • Compensation by sharing harvest or paying a price in produce, money, or both.

Types of Agricultural Tenancy

  • Share Tenancy: Joint farming where landholder provides land; tenant provides labor, possibly other inputs; shares divided per contribution.
  • Leasehold Tenancy: Tenant cultivates land for a fixed or percentage price, payable in money, produce, or both.

Key Definitions

  • Tenant: Person cultivating land with household labor, sharing produce or paying fixed price.
  • Landholder: Owner or possessor leasing land under share or leasehold tenancy.
  • Agricultural Year: Time to raise seasonal crops including land prep, sowing, harvesting.
  • Farm implements/work animals defined with fair rental value limits.
  • Immediate Farm Household: Tenant’s family and dependents aiding farm work.
  • Other terms clarified for legal consistency.

Establishment and Nature of Tenancy Relationship

  • Arises from express or implied agreement.
  • Entitles tenant to security of tenure until lawful dispossession.
  • Relationship limited to actual cultivator and land provider.

Severance and Continuity of Tenancy

  • Relationship ends by tenant’s voluntary surrender, death or incapacity.
  • Tenancy continues despite contract expiration or land sale; successors assume rights and obligations.
  • Contract terms continue unless modified; tenant’s security of tenure preserved.

Contracts: Freedom and Form

  • Parties may contract freely except when terms violate law, morals, or public policy.
  • Specific prohibitions on unfair share distribution and compulsory uncompensated services.
  • Tenancy contracts must be in writing, quadruplicate, witnessed, signed, and registered with the municipal treasurer and court.
  • Registration is free; contracts serve as conclusive evidence unless challenged within 30 days.

Change of Tenancy System

  • Tenant may switch between share tenancy and leasehold tenancy.
  • Written contracts require notice and one agricultural year to effect change.

Loans and Advances

  • Interest capped at 8% per annum.
  • Obligations for loans/advances must be in writing; violations penalized under Usury Law.

Final Accounting and Debt Settlement

  • Final accounting required within 10 days post-harvest.
  • Written accounting is conclusive unless fraud or error shown.
  • Tenant pays debts from share produce or money; debts converted to money bear interest up to 10% per annum.

Protections: Exemptions and Weights

  • Certain portion of tenant’s produce and farm assets exempt from liens or attachments.
  • Official government weights and measures mandatory in transactions.

Jurisdiction and Disputes

  • Ejectment and dispute cases under original and exclusive judicial jurisdiction.

Share Tenancy Specific Rights and Obligations

  • Tenant may work elsewhere if farm duties allow; dwelling protections provided.
  • Tenant entitled to indemnification upon dispossession for labor and expenses.
  • Tenant must cultivate diligently, inform of trespass, care for animals/tools, and not abandon holdings unjustified.
  • Landholder may determine crops, fertilizers, and inspect tenant's compliance.
  • Landholder must provide tenant dwelling area and peaceful possession.
  • Landholder prohibited from unlawful dispossession and shifting tax burdens.

Cost-Sharing and Auxiliary Crop Provisions

  • Seeds returned to provider; fertilizer and pest control costs deducted from harvest and reimbursed.
  • Irrigation construction costs borne by landholder; maintenance shared proportionally.
  • Tenant entitled to 80% net produce from auxiliary crops.

Rice Share Tenancy Provisions

  • Share of production divided based on contributions: land 30%, labor 30%, implements 5%, animals 5%, harrowing 5%, transplanting 25%.
  • Lesser quality lands have adjusted shares of 25% land, 35% labor.
  • Tenant controls timing and choice in certain agricultural operations.
  • Pre-threshing without consent is prohibited.

Share Tenancy on Non-Rice Crops

  • Parties free to stipulate division; tenant's labor share not less than 30% after expenses.
  • Local customs prevail if more favorable to tenant.

Leasehold Tenancy Rights and Duties

  • Tenant-lessee entitled to peaceful use and crop management under proven practices.
  • Tenant entitled to half the value of improvements made.
  • Rent payments capped based on land class and must comply with fair rental standards.
  • Landholder-lessor may inspect premises without coercion.

Security of Tenure and Causes for Dispossession

  • Tenant cannot be dispossessed except for lawful causes proven in court.
  • Causes include landholder’s intent to cultivate personally or with machinery, tenant’s contract violation, non-payment, misuse of land, neglect of farm care, or criminal acts.
  • Landholder bears burden of proof.

Duties of Government Officials

  • Secretary of Agriculture to educate, revise rental rates, facilitate contract registration, conduct research, and report progress.
  • Secretary of Justice to formulate enforcement programs and assign judicial resources.
  • Public Defenders to represent indigent tenants.

Application and Enforcement

  • Existing laws apply unless inconsistent.
  • Doubts resolved in favor of tenant.
  • Violations punishable by fines or imprisonment.
  • Severability clause preserved Act integrity despite invalid provisions.
  • Repeals inconsistent laws.
  • Effective upon approval.

Rental Value Schedules

  • Schedule "A": Rental value of work animals and implements based on depreciation and 6% interest.
  • Schedule "B": Rental value of farm machinery similarly computed.
  • Schedule "C": Charges for landholder-performed farm services capped at local rates.

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