Title
Implementation mechanisms of CARP
Law
Executive Order No. 229
Decision Date
Jul 22, 1987
Corazon C. Aquino's Executive Order No. 229 establishes the Comprehensive Agrarian Reform Program, outlining mechanisms for the acquisition and distribution of agricultural lands to promote equitable land ownership and support for farmer-beneficiaries in the Philippines.

Implementation of Land Acquisition and Distribution

  • Land acquisition and distribution cover all lands under the program's scope.
  • Subject to constitutional limits on priorities and retention.
  • Just compensation must be paid to landowners.

Exemptions from Coverage

  • Lands used for national defense, schools, religious purposes, penal colonies, research, and quarantine centers are exempt.

Compulsory Registration of Agricultural Lands

  • All owners, lessees, or managers of agricultural land must file sworn statements with detailed information about the land, tenancy, crops, contracts, market values, and compensation expectations within 180 days.
  • Failure to register results in valuation based on Assessor's value for compensation.
  • Real property tax will be based on owner’s declared fair market value post-registration.

Private Land Acquisition Procedure

  • DAR identifies landowners and beneficiaries, publishes acquisition decision and notifies landowners.
  • Landowner has 15 days to accept or reject offer.
  • If accepted, Land Bank of the Philippines (LBP) pays within 15 days after title surrender.
  • If rejected/no response, DAR conducts summary proceedings to determine compensation.
  • Decisions may be appealed in courts.
  • DAR takes possession upon trust fund establishment or acceptance.
  • Title transferred to the Republic as Trustee for beneficiaries.

Compensation to Landowners

  • Based on owner’s declared market value, subject to PARC controls.
  • Payment modes include: a. Bonds payable over 10 years with 10% upfront cash payment. b. Direct cash or kind payment by beneficiaries subject to DAR approval. c. Other PARC-approved payment modes.

Assistance to Landowners

  • LBP provides investment counseling, bond conversion/exchange, and bond marketing services.

Voluntary Land Transfer

  • Landowners may transfer land directly to beneficiaries under DAR-approved terms.
  • Beneficiaries must be those eligible under government acquisition.
  • Minimum transferred land area must equal government acquisition amount.
  • Agreement binding and recorded with DAR with sanctions for non-compliance.

Voluntary Offer to Sell

  • Government may purchase productive and suitable agricultural lands voluntarily offered.
  • Transactions exempt from capital gains and related taxes.

Corporate Landowners

  • May allow workers to purchase corporation stock proportional to land assets.
  • PARC approval of stock distribution plan satisfies CARP land distribution requirements.

Leases, Management Contracts, and Mortgages

  • Existing leases and contracts registered before this Order continue for 5 years.
  • Renewal requires beneficiary agreement.
  • Rentals may be renegotiated or determined by DAR.
  • Government assumes mortgages up to landowner compensation value.

Payment Terms for Beneficiaries

  • Payments made in 30 equal annual installments at 6% interest.
  • 2% interest rebate for punctual payments.
  • Annual amortization capped at 10% of land's annual gross production value.
  • LBP may reduce interest or principal for affordability.
  • Prepayment incentives provided.
  • LBP lien via mortgage enforceable upon default.

Credit Support for Beneficiaries

  • Eligible for production loans for one crop cycle secured and renewable upon repayment.

Collective or Individual Ownership

  • Multiple beneficiaries may choose collective or individual ownership.
  • Collective ownership divides shares equivalent to retention limits.
  • Beneficiaries may decide operation or subdivision.

Distribution and Utilization of Public Lands

  • Public agricultural lands are distributed by DENR to qualified beneficiaries certified jointly with DAR.

Production Sharing

  • Operators with gross sales over P5 million annually must allocate at least 2.5% of gross sales to farmworkers as additional compensation.
  • Compensation limited to 100% of regular annual compensation.

Quasi-Judicial Powers of DAR

  • DAR has exclusive original jurisdiction over agrarian reform matters excluding DENR and DA jurisdictions.
  • Powers include contempt sanctions and issuance of subpoenas.
  • Decisions appealable to Regional Trial Courts but immediately executory.

Presidential Agrarian Reform Council (PARC)

  • Composed of the President (Chairman), heads of key government agencies, and representatives of beneficiaries and landowners.
  • DAR Secretary serves as Director-General and Secretariat provider.
  • Formulates policies including acquisition scheduling, valuation control, and support services.
  • Executive Committee oversees implementation program within 90 days.
  • Basic CARP policies emphasize farmers’ rights, respect for small landowners, voluntary sharing, participation, ancestral land rights, agriculture support, and expropriation of idle lands.

Barangay Agrarian Reform Council (BARC)

  • Convened by DAR at barangay level.
  • Includes representatives of beneficiaries, non-beneficiaries, cooperatives, cooperatives, landowners, NGOs, government officials, and LBP.
  • Functions include supporting program implementation, mediating agrarian conflicts, and performing delegated tasks.

Agrarian Reform Fund and Financing

  • Special fund of P50 billion created from asset sales and recovered ill-gotten wealth.
  • P2.7 billion supplemental appropriation for 1987.
  • Funds automatically appropriated for CARP purposes.

Sanctions

  • Permanent disqualification for those who prematurely claim benefits by entering land.
  • Liability for contempt for willful obstruction of CARP implementation.

Protection of Ancestral Lands

  • Rights of indigenous cultural communities to ancestral lands protected within national framework.

Immunity of Government Agencies

  • Lower courts prohibited from issuing injunctions or restraining orders against DAR, DA, DENR, and DOJ implementing CARP.

Inter-Agency Cooperation

  • PARC authorized to enlist assistance from other government bodies and corporations.

Application of Existing Agrarian Laws

  • Presidential Decree No. 27 and Republic Act No. 3844 apply as supplementary laws where consistent.

Free Registration of Titles

  • Registers of Deeds must register titles and related documents free of charge for CARP implementation.

Separability and Repealing Clauses

  • Invalidity of any provision does not affect the rest.
  • Inconsistent laws or provisions are repealed or amended.

Effectivity

  • The Order takes effect 15 days after publication in the Official Gazette or a widely circulated newspaper.

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