Title
Rules on Agricultural Land Conversion
Law
Dar Administrative Order No. 01, S. 1999
Decision Date
Mar 30, 1999
The Revised Rules and Regulations on the Conversion of Agricultural Lands to Non-Agricultural Uses in the Philippines governs the strict regulation and conditions for converting agricultural lands to non-agricultural uses, aiming to preserve prime agricultural lands for food security and promote sustainable resource use.

Law Summary

Definitions

  • Agricultural lands: lands fit for farming, raising livestock, aquaculture, not reclassified as non-agricultural before June 15, 1988.
  • Areas highly restricted from conversion: certain lands requiring additional approvals.
  • Areas non-negotiable for conversion: lands not eligible for conversion.
  • Comprehensive Land Use Plan: document mapping community land use allocation.
  • Conversion Moratorium: temporary ban on conversion of irrigated and strategic lands (1998-2003).
  • Environmentally Critical Areas (ECAs): legally protected sensitive ecological/social/geological areas.
  • Illegal conversion: conversion done to avoid CARP coverage or dispossess tenants.
  • Irrigable and irrigated lands: lands suitable or serviced by irrigation.
  • Land Use Conversion: changing agricultural land use with DAR approval.
  • Network of Protected Areas for Agriculture and Agro-Industrial Development (NPAAAD): designated agricultural zones to ensure sustainable growth.
  • National Integrated Protected Areas System (NIPAS): protected ecological zones under law.
  • Prime Agricultural Lands: lands providing optimal yield with minimal input.
  • Project Feasibility Study: assessment of viability and benefits of proposed land use.
  • Reclassification: specifying non-agricultural land uses per plan.
  • Socialized Housing: housing for underprivileged under government/EO standards.
  • Special Economic Zone (ECOZONE): areas for industrial, commercial, agro-industrial development.
  • Unauthorized conversion: use change without DAR order or beyond allowed uses.
  • Zoning and Zoning Ordinance: local land use regulation.

Coverage

  • Rules apply to conversion for non-agricultural uses, change in agricultural activities exempting CARP coverage, unauthorized or post-RA 6657 reclassifications.
  • Lands non-negotiable for conversion: NIPAS areas, irrigated lands, irrigable lands with funding, private irrigated lands.
  • Highly restricted areas: irrigable without irrigation projects, agro-industrial croplands, highlands 500m+, lands under land valuation or CARP agreements, ECAs.
  • Priority development areas: regional agri-industrial centers, tourism areas, socialized housing sites, ECOZONE projects.
  • Conversion moratorium in SAFDZ from 1998 to 2003 with 5% allowable conversion.

Conversion Procedures

  • Criteria for conversion include economic infeasibility of agriculture, urbanization, compliance with land use plans, environmental sustainability.
  • Applicants: private owners, agrarian reform beneficiaries (after 5 years and full payment), government agencies with patrimonial land.
  • Documentary requirements: application, title, photos, socio-economic study, proof of capability, tenant info and disturbance compensation, certifications on zoning, classification, environment.
  • Filing and fees: application filed with DAR, inspection and fees vary by land area.
  • Processing includes notice posting, field investigation, deliberation, reimbursement to government for investments in SAFDZ conversions.
  • Specific streamlined procedure for priority development areas.
  • Cash bond (2.5% zonal value) upon filing, refundable or converted to performance bond; performance bond posted after approval.
  • Disturbance compensation to tenants/bona fide occupants not less than 5 times average recent harvest; monitored by DAR.

Protests and Oppositions

  • Any person displaced or affected may file protest within 15 days of notice posting.
  • Grounds include ineligibility of land for conversion, disproportionate adverse effects, misrepresentation, illegal conversion, evasion of CARP.
  • Resolved together with application by approving authority.

Approving Authorities

  • Regional Director: up to 5 hectares.
  • Undersecretary: over 5 to 50 hectares.
  • Secretary: over 50 hectares and all highly restricted areas.
  • Aggregate ownership and location determine authority level.
  • Conversion order effects binding on successors, annotated on title, subject to development schedule and CARP rights.
  • Motion for reconsideration within 15 days; stay of execution pending reconsideration.

Appeals

  • Applicant or protestant may appeal within 15 days.
  • Appeals route: Regional Director decisions to Secretary; Undersecretary decisions to Secretary; Secretary decisions to Office of the President or Court of Appeals.
  • Fees and procedural rules apply; pauper litigant status for small farmers and workers.
  • Appeals to Secretary or OP generally stay execution; to Court of Appeals decision is immediately executory.

Cancellation or Withdrawal of Conversion Orders

  • Petition for cancellation within 90 days of discovery, or up to 1 year from order issuance.
  • Grounds: misrepresentation, non-compliance, lack of jurisdiction, failure on disturbance compensation, conversion beyond authorized use, other rule violations.
  • Non-litigious proceedings with due process; decision within 30 days.
  • Cancelled orders revert land to agricultural status subject to CARP.

Monitoring

  • Provincial/City Task Forces monitor illegal conversions.
  • Quarterly compliance reports by landowner/developer and DAR offices.
  • BARCs and NGOs may assist.

Illegal, Premature, Unauthorized Conversion

  • Prohibited acts include conversion to evade CARP, conversion outside urban centers post-1988, premature and unauthorized conversion.
  • Landowners/developers and officers liable.
  • DAR officials and Task Forces investigate and gather evidence.
  • Administrative investigation may lead to cease and desist orders, penalties, forfeiture of bonds.
  • Criminal prosecution for illegal and premature conversion; unauthorized conversions punished administratively.

Penalties and Sanctions

  • Administrative sanctions: cancellation of conversion, blacklisting, disapproval of applications, CDO issuance, bond forfeiture.
  • Criminal penalties: imprisonment from 1 month to 6 years, fines, forfeiture of land/improvements depending on offense.

Transitory and Final Provisions

  • Suspension of conversion application approvals lifted.
  • New rules apply to applications filed after effectivity; pending cases under previous rules except procedures.
  • Repeals inconsistent orders, effective 10 days post-publication.
  • Separability clause protects validity of other provisions if any part struck down.

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