Title
Amendments to Agricultural Tecy Act
Law
Republic Act No. 2263
Decision Date
Jun 19, 1959
The Amendments to the Agricultural Tenancy Act of the Philippines introduce changes and clarifications to improve the rights and relationships between landholders and tenants in agricultural tenancy agreements, including defining leasehold tenancy, granting rights to tenants, and establishing penalties for violations.

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.

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