Treatment of Cancelled and Expired Grazing Areas
- Cancelled or expired pasture leased areas not renewed or without new applicants automatically revert to forest tree production.
- Such areas may also be used for the production of non-wood forest products.
Schedule of User's Fee Payment and Conditions
- A five-year transitional period is provided for all existing Pasture Land Agreements (PLAs) and FLGMAs for conversion to profit-sharing agreements.
- User's fees during the transitional period are scheduled as follows:
- Year 1: ₱200.00 per hectare per year
- Year 2: ₱275.00 per hectare per year
- Year 3: ₱350.00 per hectare per year
- Year 4: ₱425.00 per hectare per year
- Year 5: ₱500.00 per hectare per year
- Non-grazable areas must be reforested at 10% of the area, or at least 25% by the expiration date, as a condition for FLGMA renewal.
- Upon renewal, the management plan includes a productivity assessment that adjusts the user's fee accordingly.
- After the transitional period, DENR will determine a new basic user's fee, with a minimum 10% increase over the last rental.
- If economic rent calculations fall below the basic user's fee, the basic user's fee will apply.
Incentives Through Government Share Reduction
- An incentive scheme allows up to 80% reduction in the government share dependent on compliance with specified incentives.
- The incentive scheme is subject to assessment during and after the transitional period.
- The specific details of the incentive scheme are provided in Annex B of the order.