Law Summary
Exemptions and Exclusions from Coverage
- Lands used for parks, wildlife, forest reserves, reforestation, fish sanctuaries, breeding grounds, watersheds, mangroves are exempt
- Private lands used exclusively for prawn farms and fishponds exempt, provided no prior CLOA distribution under CARP
- If subject to CARL, majority consent of regular workers or tenants required to maintain exemption
- If no prior CARL coverage, worker consent not required; Section 32-A incentives apply
- Additional exemptions include lands for national defense, school sites/campuses, religious sites, burial grounds, penal colonies/farms, research centers, and lands with 18% slope or more except developed ones
Commercial Farming and Compulsory Acquisition
- Private commercial farms in saltbeds, fruit, vegetable, cut-flower farms, cacao, coffee, rubber plantations
- Subject to compulsory acquisition and distribution after 10 years from effectivity of the law or first year of commercial production for new farms
- Government to pay just compensation
- Preferential acquisition in favor of organized cooperatives or associations managing lands for worker-beneficiaries
Incentive Plan for Fishpond and Prawn Farm Owners
- Owners/operators must execute incentive plan within 6 months with regular fishpond/prawn workers or their organizations
- Distribute 7.5% of net profit before tax as additional compensation to workers within 60 days post fiscal year end
- Owners’ financial books subject to periodic audit by worker-chosen CPAs
- Provision does not apply where conversion of agricultural land to fishpond/prawn farm is within retention limit
Conversion of Agricultural Lands and Fishpond Development
- Conversion of public agricultural lands to fishponds only allowed with provincial government and BFAR concurrence
- DENR leases/develops after declaration; environmentally critical areas excluded
- Approval guided by DAR and BFAR protocols; preference to small-farmer cooperatives for Fishpond Lease Agreements (FLAs)
- Private land conversion capped at 5 hectares unless certified as more economically feasible, with majority worker or tenant approval
- No piecemeal conversions allowed to evade limits
- Section 32-A incentives apply upon approval
Inventory and Sustainable Management of Fishponds and Prawn Farms
- BFAR to complete inventory of government and private fishponds/prawn farms within 1 year
- No new leases granted before inventory completion
- Sustainable management to comply with pollution control, effluent standards, and water use regulations
- Relevant authorities include FPA, EMB, and compliance with Water Code (PD 1067)
Protection of Mangrove Areas
- Existing and future FLAs must establish a buffer zone along the sea front planted with mangrove species
- Guidelines and penalties for violations set by Secretary of Environment and Natural Resources
Change of Crops Provision
- Changing to commercial or high-value crops is not a land use conversion
- Should not prejudice tenant or leaseholder rights
- Requires consent of majority of affected workers
Exception to Sale and Transfer Restrictions
- Sale or transfer of agricultural land allowed if due to bank foreclosure of mortgaged land, notwithstanding prior restrictions
Separability Clause
- Invalidity of any provision will not affect the validity of the remaining provisions
Effectivity Clause
- The Act takes effect 15 days after publication in two newspapers of general circulation