DAR Rules on Agricultural Land Conversion

DAR has exclusive power to approve or disapprove land conversion applications under E.O. No. 129-A (Section 4 (j) and 5 (1)) and R.A. No. 6657 Section 65.
DAR’s authority includes residential, commercial, industrial, and other non-agricultural uses.
Actions must reference comprehensive land use plans and ordinances approved by Local Government Units (LGUs), in compliance with national policies.

Agricultural Land: land dedicated to agricultural activities, excluding mineral, forest, commercial, residential, or industrial lands.
Conversion: changing agricultural land use to non-agricultural purposes.
Reclassification: designating agricultural lands for specified non-agricultural purposes as reflected in land use plans, including possible reversion.
Comprehensive Development Plan: a multi-sectoral plan guiding community growth and development.
Comprehensive Land Use Plan: land use map and policy guiding future development.
Zoning: dividing municipal lands into regulated functional zones per approved land use plans.
Zoning Ordinance: local legal regulations governing land use.
Private Agricultural Lands: agricultural lands owned by private individuals/entities or government in proprietary capacity.

Private agricultural landowners or authorized agents.
Agrarian Reform Program farmer-beneficiaries after 5 years from land award, fully paid and qualified.
Government agencies including government-owned/control corporations.

Applies to all private agricultural lands and reclassified lands by LGUs after June 15, 1988.
Includes lands proposed for livestock, poultry, and swine raising.

DAR prioritizes acquisition and distribution of agricultural lands to qualified beneficiaries.
Conversion allowed under strict criteria:
- Lands reclassified and approved by LGUs and HLRB/SP after June 15, 1988.
- Conversion in agricultural zones only if:
  - Land is economically impractical for agriculture (DA-certified).
  - Area is highly urbanized and conversion is economically advantageous (LGU-certified).
- In absence of approved land use plans, conversion possible if surrounding use is non-agricultural and compatible.
DENR ecological certification is mandatory for all conversions.
Specific provisions govern conversion for regional agro-industrial centers, tourism, socialized housing.
Non-negotiable zones prohibiting conversion include irrigated lands with irrigation support or committed funding.
Applications under compulsory acquisition or subject to Voluntary Offer to Sell/Voluntary Land Transfer are disallowed.
Displaced beneficiaries entitled to disturbance compensation (minimum five times average annual gross harvest value over last five years) plus free homelots and assured employment efforts by developer.
Conversion requires proof of project viability and development completion timelines linked to size of the land.

Standard documents: application form, power of attorney if not owner, certified title, maps and development plans, financial and organizational capability proofs.
Certifications from relevant authorities including HLRB, Provincial Planning, NIA, DENR, DA, LGU.
Agrarian reform beneficiaries must provide specific certifications of award and payment.
Additional documents for lands with coconut plantations, agro-processing plants, and livestock projects.

Applicants file conversion forms at designated DAR offices with complete documentation.
Regional DAR units review, post notices, conduct field investigations, and prepare reports and recommendations within 40 working days.
Regional Director approves/disapproves conversions for land under five hectares within non-agricultural zones.
Larger or agricultural zone conversions undergo CLUPPI review, and applications above 50 hectares require PARC Land Use Technical Committee and Secretary approval.
Regular reporting and documentation are mandatory.

Approved or disapproved orders with case folders are returned to CLUPPI for safekeeping and dissemination.

Motion for Reconsideration to Regional Director within 15 days suspends the appeal period.
Subsequent appeal from Regional Director decision goes to the Secretary with a processing fee.
Appeals from Undersecretary decisions go to the Secretary, and Secretary decisions appealable to the President or Court of Appeals.

Developer must display conspicuous notice of conversion approval in project area.
Failure to post can lead to suspension or cancellation of conversion approval.

Regional CLUPPI monitors adherence to terms and conditions including public notice posting.
Reports submitted monthly and quarterly to higher officials and PARC Secretariat.

Written protests by affected persons are evaluated and recommendations made to the Secretary or Regional Director depending on land size and zone.

Grounds include misrepresentation, failure to develop within prescribed periods, or other material regulatory violations.

Lands become subject to CARP compulsory acquisition and redistribution to qualified beneficiaries.

This Order applies to applications filed after its effectivity.
Pending applications prior to effectivity follow prior rules except certain small-scale non-agricultural zone applications.

Illegal land conversion without DAR approval is subject to criminal prosecution and summary disapproval of applications.
Illegal converted lands are placed under CARP for redistribution.

This Order repeals various prior DAR administrative orders and related inconsistent issuances.