Title
Mechanisms for Implementing Agrarian Reform
Law
Executive Order No. 229
Decision Date
Jul 22, 1987
Executive Order No. 229, issued in 1987, establishes the Comprehensive Agrarian Reform Program (CARP) in the Philippines, outlining the mechanisms for land acquisition and distribution, compensation to landowners, credit support for beneficiaries, and the establishment of councils and funds to oversee and support the program's implementation.
A

Implementation of Land Acquisition and Distribution

  • Land acquisition and distribution applies to all lands under the program's coverage.
  • Subject to priorities, retention limits prescribed by Congress, ecological, developmental, and equity considerations.
  • Just compensation must be paid to affected landowners.

Exemptions from CARP

  • Lands necessary for national defense.
  • School sites and campuses.
  • Religious purposes.
  • Penal colonies.
  • Government research and quarantine centers.

Compulsory Registration of Agricultural Lands

  • All owners, lessees, or managers of agricultural lands must file sworn statements within 180 days.
  • Statement to include description, income, tenants, crops, contracts, market value, and owner's declared fair market value.
  • Failure to register results in valuation based on local assessor's value for compensation.
  • Owner's declaration sets basis for real property tax after registration period.

Private Land Acquisition Procedures

  • DAR identifies lands, landowners, and beneficiaries, then announces acquisition decision and offers payment.
  • Landowner has 15 days to accept or reject offer.
  • Acceptance leads to payment by Land Bank of the Philippines (LBP) within 15 days after title surrender.
  • Rejection or silence triggers administrative proceedings to determine compensation.
  • Trust fund established by LBP after decision, payment, or acceptance.
  • Land possession transfers to DAR; TCT issued in the name of Republic of the Philippines as trustee for beneficiaries.
  • Beneficiaries obtain ownership rights upon issuance of Certificate of Landownership Award.

Compensation to Landowners

  • Based on owner's declared fair market value, with controls set by Presidential Agrarian Reform Council (PARC).
  • Payment options include bond payment over 10 years, direct payment by beneficiaries, or other modes approved by PARC.
  • Bonds bear interest aligned with treasury bill rates, maturing over ten years.

Support to Landowners

  • LBP to provide investment information, bond conversion/exchange assistance, and bond marketing services.

Voluntary Land Transfer and Sale

  • Landowners may enter voluntary agreements with beneficiaries under DAR-approved terms.
  • Guidelines ensure beneficiaries are those eligible under government acquisition, land size matches government acquisition, full disclosure of terms.
  • Agreements are binding, recorded, and monitored by DAR.
  • Government to purchase voluntarily offered productive agricultural lands, exempt from capital gains and other taxes.

Corporate Landowners

  • May offer workers rights to purchase proportional capital stock related to land assets.
  • PARC approval of stock distribution plan satisfies land distribution requirements under CARP.

Continuation and Renewal of Leases and Management Contracts

  • Pre-existing registered leases and contracts continue under original terms for up to 5 years.
  • Renewals require beneficiary consent.
  • Rental renegotiations aided by Barangay Agrarian Reform Council (BARC) if terms are unacceptable.
  • Mortgages and claims assumed by government up to compensation value.

Payment Terms for Beneficiaries

  • 30 equal annual payments at 6% interest per annum.
  • First payment due one year after resale.
  • 2% rebate for timely amortizations.
  • Annual payments capped at 10% of land's annual gross production value.
  • LBP may reduce interest or principal to ensure affordability.
  • LBP holds mortgage lien with foreclosure upon default of 3 annual amortizations.

Credit Support for Beneficiaries

  • Eligible for production loans for one crop cycle, renewable upon repayment.
  • Terms determined by LBP.

Collective or Individual Land Ownership

  • Land parcels may be owned collectively or individually.
  • Collective ownership entails undivided shares within retention limits.
  • Beneficiaries decide on parcel operation or subdivision.

Distribution of Public Lands

  • Alienable and disposable public lands suitable for agriculture, outside settlements, distributed by DENR with DAR certification.

Production Sharing for Large Agricultural Operators

  • Operators with gross sales over P5 million annually must execute production sharing salary plans.
  • At least 2.5% of gross sales distributed as additional farmworker compensation, capped at 100% of regular pay.

Quasi-Judicial Powers of DAR

  • DAR has exclusive jurisdiction over agrarian reform matters except those under DENR and DA.
  • Empowered to punish for contempt and issue subpoenas and writs.
  • Decisions immediately executory but appealable to Regional Trial Courts.

Presidential Agrarian Reform Council (PARC)

  • Created to coordinate CARP implementation and support services.
  • Composed of President (Chairman), various Cabinet Secretaries, agency heads, and representatives of beneficiaries and landowners.
  • DAR Secretary acts as Director-General and Secretariat provider.
  • PARC formulates policies, sets acquisition schedules, validates compensation controls, and recommends small farm economies.
  • Executive Committee handles program implementation plans considering priorities and constitutional guidelines.

Barangay Agrarian Reform Council (BARC)

  • Convened at barangay level by DAR to support agrarian reform.
  • Composed of farmer beneficiaries and non-beneficiaries, cooperatives, NGOs, landowners, local officials, and DAR, DA, DENR, and LBP representatives.
  • Functions: implementation support, conflict mediation, and performance of delegated tasks.

Financing: Agrarian Reform Fund

  • Special fund of P50 billion created from proceeds of Asset Privatization Trust and recovered ill-gotten wealth.
  • Funds are automatically appropriated for CARP purposes.
  • Additional P2.7 billion appropriated as supplemental funds.

Sanctions

  • Permanent disqualification from benefits for persons/entities who prematurely occupy lands.
  • Liability for contempt for those obstructing CARP implementation.

Protection of Indigenous Ancestral Lands

  • Indigenous peoples' rights to ancestral lands protected within national unity framework.

Immunity from Judicial Interference

  • No injunctions or restraining orders against DAR, DA, DENR, or DOJ in CARP implementation.

Support from Other Government Entities

  • PARC may call on government agencies and government-owned corporations for assistance.

Application of Existing Agrarian Laws

  • PD No. 27 remains effective for rice and corn lands.
  • RA No. 3844 and other non-conflicting laws have supplemental effect.

Free Registration of Titles and Patents

  • Registers of Deeds instructed to register titles and documents required for CARP free of charge.

Separability Clause

  • Invalidity of any section does not affect the remainder of the Order.

Repealing Clause

  • Laws and issuances inconsistent with this Order are repealed or amended.

Effectivity

  • The Order takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.

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