Government Policy Objectives
- Promote social justice, sound rural development, industrialization, and full employment.
- Treat land as a national resource for public welfare, not merely as a commodity.
- Ensure just and timely compensation for all parties affected by conversion.
Legal Authority and Restrictions
- The Department of Agrarian Reform (DAR) exclusively authorized to approve/disapprove conversion of agricultural lands.
- Prohibition of conversion intended to evade CARP coverage.
- Restrictions on sale, transfer, or change of agricultural lands outside urban centers post-RA 6657 effectivity.
Scope of Application
- Applies to all private agricultural lands regardless of tenancy or crops.
- Excludes lands covered by Administrative Order No. 15 and related General Orders.
Governing Principles for Conversion
- Prime agricultural lands, especially irrigated areas, are preserved for food production.
- Conversion allowed only if conforming to HLURB-approved land use plans.
- Exceptions for government housing, joint ventures, economically unfeasible agricultural land, and urbanized areas with proper certification.
- Local ordinance approval, HLURB concurrence, and affected community referendum required for non-conforming land use plan conversions.
- Land awarded under CARP may be converted after 5 years if fully paid and specific conditions met.
- Tenant-lessees displaced by conversion entitled to disturbance compensation equivalent to five times average gross harvest.
- Conversion applications barred after Notice of Acquisition issuance by DAR.
- Petitioner must prove financial and organizational capability to develop land within specified timeframes.
Eligible Applicants
- Private landowners or authorized representatives and licensed developers.
- Farmer-beneficiaries who have fully paid land awards.
- Government agencies and government-controlled corporations.
Documentary Requirements
- Varied depending on type of proposed conversion but generally include:
- Application forms.
- Proof of ownership (OCT/TCT).
- Location and land use certification by HLURB.
- Financial and organizational capability documentation.
- Proof of tenancy status and disturbance compensation arrangements.
- Government agency certifications as applicable.
Procedural Steps for Conversion
- Submission of application and documents to Municipal Agrarian Reform Office (MARO).
- MARO reviews, conducts field investigations, posts notices, and prepares report within 20 working days.
- Provincial Agrarian Reform Office (PARO) evaluates, investigates further if needed, and handles protests within 10 working days.
- Regional Agrarian Reform Office (RARO) evaluates applications up to 5 hectares and prepares approval/denial orders within 10 days.
- Larger land conversions (>5 hectares) evaluated by Bureau of Land Development (BLD) and reviewed by Undersecretaries for Operations and Legal Affairs, then Secretary.
- Signed orders are released and copies distributed to relevant offices.
- Monitoring of compliance by MARO, RARO, and BLD with periodic reporting.
Handling of Protests and Oppositions
- Investigated and resolved by Provincial Agrarian Reform Adjudicator (PARAD) or Hearing Officer.
- Appeals entertained by DAR Adjudication Board (DARAB).
- Protests do not automatically halt application processing but considered in borderline cases.
Cancellation and Withdrawal of Conversion Approvals
- Grounds include serious violations of conditions, misrepresentations, evasion of RA 6657, failure to complete development in time.
Consequences of Disapproval or Disauthorization
- Lands revert to CARP compulsory coverage.
- Beneficiaries reinstated without refunding prior compensation.
Excusable Default and Extensions
- Applicants may be granted one-year extension for valid reasons excluding fraud or concealment.
- Willful illegal conversion subject to prosecution.
Repealing and Transitional Provisions
- Repeals Administrative Order No. 15, series of 1988.
- Does not supersede Administrative Order No. 15, series of 1989 and related General Orders.
- Pending applications governed by this Order with allowance for previously submitted documents.
Effectivity
- Order effective ten days after publication in two newspapers as mandated by RA 6657 Section 49.
This summary captures the essential provisions, legal mandates, procedures, and safeguards of the comprehensive DAR Administrative Order governing conversion of private agricultural lands to non-agricultural uses.