Guidelines on Agri-Land Reclassification

Governing legal bases and policy anchors

Reclassification of private agricultural land to non-agricultural uses is guided by Article II, Section 21 and Article XII, Section 1 of the Philippine Constitution.
The order uses Republic Act No. 6657, Section 2 as a key legal foundation for land matters involving agricultural lands and related policy constraints.
The order is also anchored on Executive Order (EO) 292, Series of 1987 (the Revised Administrative Code of 1987), particularly Title IV, Chapter I, Section 2 establishing the DA’s responsibility for agricultural development policy framework and support services.
The order recognizes EO 292 as empowering the DA to promulgate and enforce laws, rules and regulations governing the conservation and proper utilization of agricultural and forestry resources.
Presidential Memorandum dated April 16, 1999 provides that DAR Administrative Order No. 1 Series of 1999 shall serve as the primary guideline on conversion of agricultural lands to non-agricultural uses requiring DA classification/reclassification of the land.
DA A.O. No. 6 Series of 1998, Rule 9.3 limits conversion of use for lands covered by the Strategic Agriculture and Fishery Development Zone (SAFDZ) subject to limits under Sections 9 and 12 of that issuance, in addition to other conversion and watershed protection rules, including RA 6657 and Presidential Administrative Orders 20 and 363, and Section 20 of Republic Act No. 7160.
DAR A.O. No. 1 Series of 1999 requires certification from the Department of Agriculture stating, among others, the classification of the property under the NPAAAD and the SAFDZ.
Republic Act No. 7881 amends Republic Act No. 6657 (including Sections 3-B, 10, and 11) affecting: (1) definition of agricultural activity; (2) exemption of prawn farms and fishponds from CARL coverage; and (3) inclusion of commercial livestock, poultry, and swine raising and aquaculture (including fishponds and prawn farms) for CARP coverage after a ten-year deferment period, respectively.

Key definitions for eligibility processing

“Agricultural Lands” (as amended by Section 3-B of Republic Act No. 7881) refer to lands devoted to or suitable for cultivation, planting, growing of trees (including harvesting), and other farm activities/practices performed in conjunction with farming operations by persons (natural or juridical), and not classified by law as mineral land, forest or timber, or national park, nor reclassified as residential, commercial, industrial or other non-agricultural uses before June 15, 1988.
“Conversion Moratorium” refers to the policy under Republic Act No. 8435 that prohibits reclassification of: (a) irrigated lands; (b) irrigated lands already covered by irrigation projects with firm funding commitments; and (c) lands with existing or potential for growing high-value crops delineated within the SAFDZ, for 10 February 1998 to 9 February 2003.
“Illegal Conversion” is defined as conversion intended to avoid RA 6657 and dispose tenant farmers, or the change of the nature of lands outside urban centers/city limits either in whole or in part after the effectivity of RA 6657, as provided in Section 73(c) and (e) of RA 6657.
“Irrigable Lands” are lands showing marked characteristics justifying operation of an irrigation system.
“Irrigated Lands” are lands serviced by natural irrigation or irrigation facilities, including lands where water is not readily available due to need for rehabilitation/upgrading or where irrigation water is not available year-round.
“Land Use Conversion” is the act/process of changing current agricultural land use into another use as approved by the DAR.
“Network of Protected Areas for Agricultural and Agro-Industrial Development (NPAAAD)” refers to agricultural areas identified by the DA through Bureau of Soils and Water Management, coordinating with National Mapping and Resource Information Authority, to ensure efficient utilization for agriculture and agro-industrial development and promote sustainable growth, and includes specified irrigated and irrigable areas, alluvial plains, agro-industrial croplands/industrial crop lands, arable highland at elevation of five hundred (500) meters or above, ecologically fragile agricultural lands, mangroves and fish sanctuaries, and fishery areas defined under the Fisheries Code of 1998.
“Premature Conversion of Agricultural Land” is development activity altering physical characteristics to render land suitable for non-agricultural purposes without any approved Order of Conversion from DAR (as referenced under DAR A.O. 7 s.1997).
“Private Agricultural Lands” are agricultural lands (as defined here) owned by natural/juridical persons, or by government in its proprietary capacity.
“Reclassification of Agricultural Lands” is specifying how agricultural lands shall be utilized for non-agricultural uses (residential, industrial, commercial) as embodied in the land use plan, subject to reclassification requirements and procedure, and includes reversion of non-agricultural lands to agricultural use.
“Strategic Agriculture and Fisheries Development Zone (SAFDZ)” refers to areas within the NPAAAD identified for production, agro-processing, and marketing activities, to help modernize agriculture and fisheries in an environmentally and socio-culturally sound manner.
“Unauthorized Conversion” is changing agricultural land use in a way that exempts the land from CARP coverage without a DAR conversion order, or changing land use other than that allowed under the DAR conversion order.

Coverage: where the guidelines apply

The guidelines apply to the issuance of DA Certification consistent with DAR A.O. No. 1 Series of 1999 on land conversion.
DA Certification applies to land conversions to residential, commercial, industrial, institutional and other non-agricultural purposes.
DA Certification applies to conversion to another type of agricultural activity such as livestock, poultry, and fishpond, where the effect is to exempt the land from CARP coverage.
DA Certification applies to conversion to a non-agricultural use other than that previously authorized.
DA Certification applies to lands reclassified to residential, commercial, industrial, or other non-agricultural uses on or after June 15, 1988 pursuant to Section 20 of R.A. 7160 and other pertinent laws and regulations, and requires exemption clearance guidelines for lands reclassified prior to June 15, 1988.
Conversion is allowed if there is no Notice of CARP Coverage; for this purpose, DAR provides DA with a list of areas with Notice of Coverage except those with Special Permits.
The guidelines expressly govern lands within the NPAAAD, including: (1) irrigated areas; (2) irrigable lands already covered by irrigation projects with firm funding commitment; (3) alluvial plains highly suitable for agriculture (whether irrigated or not); (4) industrial cropland presently planted to industrial crops; (5) arable highland at 500 meters or above suitable for semi-temperate and high value crops; (6) ecologically fragile agricultural land; and (7) fishery areas defined under the Fisheries Code of 1998.
The guidelines govern lands within SAFDZs consistent with Section 9 of RA 8435, including the conversion moratorium and conversion limits described below.

SAFDZ moratorium and conversion limits

Lands within the SAFDZ covered by the moratorium include all irrigated lands, irrigable lands already covered by irrigation projects with firm funding commitments, and lands with existing or having the potential for growing high-value crops included within the SAFDZs.
The moratorium applies for five (5) years from 10 February 1998 to 9 February 2003.
During the moratorium, reclassification may be allowed only for five percent (5%) of the lands stated in Section IV(c)(1), subject to compliance with existing laws, rules and regulations.
The maximum five percent (5%) equivalent to the total area eligible for conversion to non-agricultural use is jointly determined by DA and DAR upon the recommendation of the Regional and National SAFDZ Committees pursuant to Rule 9.5.2 of DA Administrative Order No. 6 Series of 1998.
After the expiration of the conversion moratorium, conversion may be allowed, if at all, on a case to case basis, subject to existing laws, rules and regulations on land use conversion.

Conversion criteria and who may apply

Reclassification resolutions for eligibility are guided by the enumerated factors listed under Section V.
Reclassification must be consistent with the natural expansion of the municipality or locality as contained in the approved physical framework and land use plan.
Reclassification must ensure the area to be reclassified is not the only remaining food production area of the community.
Reclassification must not hamper the availability of irrigation or the productivity of nearby farmlands.
Areas with lower productivity receive priority for land use conversion.
Eligibility favors projects supportive to agro-industrial development and generating alternative livelihood opportunities for the affected community.
Owners of private agricultural lands or persons duly authorized by the landowner may apply for reclassification.
Government agencies, including government-owned or controlled corporations and local government units, may apply when they own agricultural land as patrimonial property.

Documentary requirements and field processing

Applicants must file a Notarized Application for Reclassification (Land Use Reclassification [LUR] Form No. 1).
Applicants must submit a Special Power of Attorney if petitioner is not the owner, or Board Resolution if the owner is a corporation.
Applicants must submit a true copy of the Original Certificate of Title (OCT) or Transfer Certificate of Title (TCT) certified by the Register of Deeds not later than thirty (30) days prior to filing.
If the landholding is an untitled agricultural land, applicants must submit: (a) DENR CENRO Certification that the landholding has been classified as alienable and disposable; and (b) a DENR CENRO certification for administrative confirmation of imperfect title or a Clerk of Court certification for judicial confirmation of imperfect title that (1) titling proceedings has commenced and (2) there are no adverse claimants.
Applicants must submit one (1) copy each of: sketch map, vicinity map, and lot plan showing TCT Nos., Lot No., area per TCT, and area applied for conversion, prepared by a licensed geodetic engineer, and with sufficient reference points for identification.
Applicants must submit recent 5R photographs of the property certified by a member of DA-RLUTWG after field investigation.
In processing, the applicant presents duly accomplished DAR LUC 1 together with a blank LUR Form 3 (DA Certification) and supporting documents through DA-RFU Regional Director via the expanded RLTWG (RTeCLUM).
The RTeCLUM receiving officer reviews documents for completeness and, if incomplete, advises submission of lacking documents.
If the land has a Notice of CARP coverage and/or has premature conversion, the application is returned.
If complete, RTeCLUM conducts field investigation to determine characteristics of areas applied for reclassification using LUR Form 3A.
After field investigation, RTeCLUM forwards Land Use Reclassification Folio (LURF) to the DA Regional Director, who forwards LURF to the TeCLUM through its Secretariat.
TeCLUM conducts due deliberation/ocular inspection and submits findings and recommendation to the Office of the Secretary using LUR Form 3B.
The Office of the Secretary acts on the application and sends approved/disapproved results to the TeCLUM Secretariat using LUR Form 3C.
The Secretariat sends the original Certificate directly to applicant/authorized representative or through the DA-RFU concerned, retaining a certified photocopy for record/reference and requiring another certified copy retained by the Records Section of the BSWM.

Technical committee roles and approving authority

A Regional Technical Committee for Land Use Matters (RTeCLUM) is created to provide efficient and fast processing of applications for land use conversions.
DA-RFU Regional Director serves as Chairman of RTeCLUM.
RTeCLUM members include regular and alternate representatives from DA attached agencies, consisting of: PCA, SRA, NTA, FIDA, BFAR, NIA, and BSWM Soil and Water Access Team (SWAT), with a coordinator.
RTeCLUM conducts a joint field inspection to provide land characteristics for LUR Form No. 3A.
The Secretary of the DA, or duly authorized official(s), have the sole authority to issue Certificates of Eligibility for Reclassification of Agricultural Lands.

Certification fees and reconsideration mechanism

DA-RFUs collect processing and certification fees per application at the time of application.
A fixed fee of PHP 2,000.00 per application applies, with PHP 250.00 remitted to the NIA regional office.
A variable fee of PHP 100.00 per hectare applies, remitted to the Philippine Coconut Authority (PCA) provincial office.
Rates for attached agencies are set by their respective Board of Directors.
The applicant or protestant may file a motion for consideration of a certification within fifteen (15) days from receipt of a copy of the certification, with proof of service on the adverse party.
The DA Secretary or duly authorized official resolves the motion for reconsideration.
DA action on the motion for reconsideration is final.

Repeal and effectivity rule

The order repeals all previous issuances inconsistent with it.
The order takes effect ten (10) days after publication in two (2) newspapers of general circulation.