Law Summary
Definitions
- Animal Unit: 1 mature cow or 2 yearlings.
- Carrying Capacity: max number of animal units sustainable for one year.
- Community Grazing Lands: land for residents’ livestock grazing.
- Economic Rent: net revenue from grazing after costs and investments.
- Forest Lands: includes public, permanent, and reserved forests.
- FLGMA: agreement between holders and government for grazing land management.
- Grasslands: public land dominated by grasses.
- Grazing Land: forestland suitable topographically and vegetatively for livestock.
- Grazing Capacity: max animal units without environmental damage.
- Herbage Yield: forage yield measurement.
- Interim Privilege: 6-month authorized grazing before agreement renewal.
- Secretary: DENR Secretary.
- Stocking Rate: animal units per unit area yearly.
Areas Available for FLGMA
- Forest lands with at least 250 hectares contiguous.
- Topography: ≤50% slope (min 75% area).
- Grass as dominant vegetation.
- Forage production ≥500 kg/hectare.
- Free of claims, concessions, permits.
- Existing pasture lease lands may continue under agreement.
- Expired/canceled TLAs suitable for grazing can be included.
Prohibited Areas
- Areas with existing TLAs, IFMAs, except with waiver or minor forest product permits.
- Protected areas except multiple-use or buffer zones under NIPAS.
- Forestlands administered by other agencies without consent.
- Certified ancestral lands, unless ICCs/IPs opt to join FLGMA.
- Uncertified ancestral lands unless ICCs/IPs join Community-Based Forest Management.
Size of FLGMA
- Minimum 50 hectares for individuals.
- Maximum 500 hectares for individuals.
- Maximum 2,000 hectares for associations, cooperatives, or corporations.
Areas for Grazing
- Grazing restricted to slopes ≤50%.
- 10% to staple crop production in arable portions.
- Minimum 10% improved pasture establishment.
- Protected naturally growing trees.
- Areas >50% slope maintained with forest or forage under cut-and-carry.
Rights-of-Way
- DENR may allow rights-of-way ≤10 meters wide for public interest.
- Compensation to FLGMA holder required for damages.
Classification of Grazing Lands
- Classified via scorecard into Class A (70-100 points), Class B (50-69), Class C (<50).
Application Process
- FLGMA application required for issuance/renewal.
- Renewal applications filed at least 60 days before expiration.
- Applicants must be Filipino individuals or corporations with at least 60% Filipino ownership.
- Application form includes description, boundaries, plans.
- Requires documentary submissions including incorporation, by-laws, tax returns, permits.
- Applications filed at CENRO jurisdiction office.
- P10 application fee per hectare, non-refundable.
Evaluation and Assessment
- Preliminary evaluation to check area suitability and conflicts.
- Area may be reduced if partially available.
- Evaluation of financial and technical capability and competing applications.
- Assessment team includes DENR officers, local government, agriculture, and private sector reps.
- Assessment every 5 years or as requested.
- P300 per hectare survey and assessment fee.
- Survey includes perimeter marking and data gathering on bio-physical and socio-economic factors.
- Compilation map prepared referencing NAMRIA’s 1:50,000 topographic map.
- Reports submitted under oath within 45 days.
Approval and Bond Requirement
- Approval based on best use and management plan.
- Bond of P500 per hectare posted in cash or surety bond.
Responsibilities
- Agreement holder responsible for protection, development and maintaining productivity.
- Government responsibilities outlined in management plan.
Duration and Renewal
- Term: 25 years, renewable for another 25.
- 90 days removals period on termination.
- Renewal requires compliance with reforestation (minimum 25% if non-grazeable) and management plans.
Management and Operational Plans
- 25-year management and 5-year operations plans required.
- Prepared with registered forester assistance.
- Environmental Impact Assessment and Compliance Certificate needed.
- Committee formed to set guidelines for plans.
- Plans reviewed by a committee including DENR and agriculture representatives.
Payment and Penalties
- Economic rent computed as (Total Revenue - Total Cost) - Margin for Profit (30% of Cost).
- Government share subject to incentive reductions up to 80% for compliance.
- Five-year transitory fee schedule incrementally increasing up to P500/hectare.
- Payment due first month of succeeding year; 60% remitted to NRDC.
- Penalties: 1% per month late fee; 100% penalty for late payment; 2 consecutive years non-payment leads to cancellation.
Reporting and Evaluation
- Annual grazing report due each December, certified by a registered forester.
- FLGMA holders evaluated annually for first 3 years, then biennially.
- Evaluation checks compliance, results submitted to DENR.
- Corrective measures required for deficiencies.
Renewal and Interim Privileges
- Renewal application filed 60 days prior to expiration.
- Area open to new applicants if renewal not timely and area still suitable.
- Interim Grazing Privilege issued for 6 months during renewal processing.
- Interim holders must maintain previous agreement terms; no new permanent improvements.
Transfer and Assignment
- Transfer, sale or assignment requires prior DENR Secretary approval.
- Allowed only after 3 years and subject to compliance and qualifications.
- No transfer allowed for speculations or to defraud creditors.
- Surviving heirs may succeed FLGMA if within 60 days of death and capable.
- Stock transfers in corporations require DENR approval and must comply with citizenship and management rules.
Grounds and Procedures for Cancellation
- Cancellation for agreement violations, non-compliance, missing reports, or fee defaults.
- Fifteen-day reconsideration period upon cancellation notice.
- Bonds forfeited upon cancellation; improvements vest to DENR.
- Fraud or misrepresentation may lead to criminal charges.
Dispute Resolution
- Boundary disputes resolved by Special Response Committee by Regional Executive Director or Secretary depending on jurisdiction.
- Losing party may file motion for reconsideration with Secretary.
Conversion and Abandoned Areas
- Existing leaseholders may convert grazing areas to IFMA or SIFMA.
- DENR to take over cancelled or abandoned areas for public bidding.
Fees and Legal Provisions
- Docket fee of P100 per hectare for claims and complaints.
- Rules of Court apply where inconsistent.
- Supersedes conflicting prior DENR orders.
- Implementing guidelines to be issued by DENR.
- Effectivity 15 days after publication.
This comprehensive breakdown highlights major provisions, policies, definitions, procedural requirements, rights, limitations, fee structures, and enforcement mechanisms for the regulatory framework governing forest lands used for grazing in the Philippines.