Law Summary
Definitions: Agricultural Year, Beginning of Agricultural Year, Broadcasting, Ratooning, Auxiliary Crop, Suited for Mechanization
- Agricultural Year: Time needed for raising seasonal products including land preparation, sowing, harvesting, threshing.
- For perennial crops (coconuts, coffee, etc.), it means from land preparation to first harvest and harvest to harvest thereafter.
- Agricultural year may be shorter or longer than a calendar year.
- Beginning of agricultural year: Time of first farm operation such as seed-bed preparation.
- Broadcasting: Scattering seeds directly to landholding instead of transplanting.
- Ratooning: Cutting straw close to ground after drainage to allow regrowth for multi-harvest crops.
- Auxiliary crop: Any crop besides the principal crop cultivated annually, excluding certain lots.
- Suited for mechanization means over 60% of tenant labor can be replaced by machinery, reducing production costs.
Severance of Tenancy Relationship
- Extinguished by tenant's voluntary surrender, abandonment, death, or incapacity.
- Tenant’s immediate family member within second degree of consanguinity may continue tenancy.
- Landholder may cultivate land personally or by farm machinery.
- Expiration of contract or sale/transfer does not automatically end tenancy; purchaser assumes tenant relations.
Tenant’s Right to Change Tenancy System
- Tenant can switch between share tenancy and leasehold tenancy or between share arrangements.
- Exercisable at least one month before next agricultural year after contract expiration (if in writing and registered).
- If no registered contract, change may be made at least one month before agricultural year of change.
Tenant’s Rights: Contribution Proof, Home Lot
- Tenant can prove contributions aside from labor.
- Tenant entitled to a home lot for dwelling, max 3% of landholding or 1,000 sqm, located conveniently on landholder’s property.
- Home lot used for dwelling, raising small livestock, vegetables, minor industries.
- Tenant’s dwelling cannot be removed without severance or legal ejection.
Landholder’s Rights: Crop Choice, Farm Practices
- Landholder chooses kind of crop and seeds, subject to tenant’s objection and court resolution.
- Tenant cannot be ejected for crop changes.
- Landholder can require tenant to follow proven farming practices and use specified fertilizers.
- Disputes resolved by court for mutual interest.
Landholder’s Obligations: Home Furnishing and Home Lot Transfer
- Landholder must provide home.
- If relocating home lot, landholder bears transfer costs.
- Tenant may contest relocation before court if disagreement arises.
Prohibitions for Landholder
- Landholder cannot mortgage tenant’s share in the crop.
- Mortgage of land or crop does not affect tenant’s share.
- Landholder shall not discourage tenant unions but cannot initiate or interfere with their organization.
Seed, Fertilizer, Pest and Weed Control Expenses
- Costs evidenced by invoices/receipts, including additional weeding beyond local custom, paid from gross harvest.
- Disputes over weeding costs settled by court.
Landholder Advances for Fertilizer and Pest Control
- If fertilizer or pest/disease control directed by landholder, cost advanced by him, deducted from produce.
Share Basis for Riceland Production
- Shares based on contributions: land (30%), labor (30%), implements (5%), animals (5%), final harrowing (5%), transplanting (25%).
- Adjustments made if certain contributions are not applicable.
Additional Rights of Landholder
- Specifies date of threshing not beyond one month from stacking harvest.
Prohibition Against Pre-Threshing
- No reaping/threshing before set date without mutual consent.
- Tenant may reap up to 10% of net share if landholder cannot provide food.
- Violations penalized under law.
Fixed Consideration for Use of Land
- For ricelands: not more than 25% (first class land) or 20% (second class) of average gross produce after deductions.
- Landholder may demand rental increase after productivity improvements with court determination.
- Classification based on yield levels.
- For trees and other plants: max 25% of average produce; additional considerations by negotiation.
Applicability to Auxiliary Crops
- Division of auxiliary crops according to specific provisions.
Strict Conditions for Tenant Ejectment
- Tenant may only be dispossessed for court-proven causes.
- Illegal for third party to dispossess tenant except by court order.
- Violations are penalized.
Grounds for Dispossession of Tenant
- Bona fide intention of landholder or close relative to cultivate personally or by machinery.
- Notice requirements: 1-2 years prior notice to court and tenant.
- Certification required that land is suited for mechanization.
- Resettlement provisions for displaced tenants.
- Tenant preference for labor employment in mechanized farm.
- Landholder may mechanize without ejecting tenant by petition to court.
- Noncompliance by share-tenant with farm practices grounds for dispossession.
Duties of Agricultural Tenancy Commission
- Oversees tenancy regulations and enforcement.
Duties of Secretary of Justice
- Conducts national enforcement, including mediation of tenancy disputes.
Tenant Representation
- Indigent tenants entitled to legal representation via tenancy mediation commission or court appointment.
Penal Provisions
- Violations of specific sections penalized by fines up to P2,000 or imprisonment up to one year.
- Bad faith inducement carries higher penalties.
- Liability extends to responsible officials of juridical persons.
Transitional and Separability Provisions
- Act applies to cases pending at approval.
- Invalidity of any provision does not affect others.
Effectivity
- Act takes effect upon approval.