Limitation on Computed Land Values Against Landowner's Offer
- Computed values using applicable formulas shall not exceed the Landowner's Offer (LO) in cases of Voluntary Offer to Sell (VOS).
- The LO shall be grossed up from the date of the offer to the date the claim folder is received by LBP for processing.
Definition of Receipt Date of Claim Folder by LBP
- Date of receipt means the date when LBP determines the claim folder is complete with all required documents and valuation inputs verified and validated.
- DAR will assist LBP in obtaining necessary documents listed in DAR Administrative Order No. 1, Series of 1993.
Grossing-up Valuation Inputs Using Regional Consumer Price Index
- Valuation inputs such as LO, Sales Transaction (ST), Acquisition Cost (AC), Market Value Mortgage (MVM), and Market Value per Tax Declaration (MV) will be grossed up.
- Formula involves multiplying the input by a Regional Consumer Price Index (RCPI) adjustment factor.
- The RCPI adjustment factor is the ratio of RCPI at receipt of claim folder or the most recent prior month to the RCPI at the date/effectivity of the valuation input.
Amendments to Definitions of Agricultural Gross Production and Selling Price
- Agricultural Gross Production (AGP): Latest 12 months' gross production immediately before the offer (VOS) or notice of coverage (CA).
- Selling Price (SP): Average of last 12 months' prices before claim folder receipt, sourced from Department of Agriculture or regulatory bodies; secondarily from Bureau of Agricultural Statistics; preferentially from locality (barangay or municipality).
Failure to Submit Production Data and Use of Industry Data
- If landowner fails to submit the required statement within 15 days upon MARO's request or if data cannot be validated, LBP may use available industry data or commission an industry study.
Crop Cycle Considerations for AGP Calculation
- For crops with cycles exceeding one year, at least one normal crop cycle is used.
- For crops with cycles less than one year, two normal crop cycles are required.
Comparable Sales Transactions (ST) Requirements and Grossing-Up
- Relevant sales must be executed between January 1, 1985, to June 15, 1988, and registered between January 1, 1985, to September 13, 1988.
- STs must be grossed up from their registration date to the claim folder receipt date, applying the RCPI adjustment formula.
Acquisition Cost (AC) Considerations
- Relevant if property was acquired by purchase or exchange within the specified 1985-1988 period and remained substantially similar.
- Not used as a value ceiling but as an additional input in CS determination.
- Grossed up from registration date to claim folder receipt date using RCPI adjustment.
Market Value Based on Mortgage (MVM) Adjustments
- MVM is grossed up from the date of the latest appraisal report to the claim folder receipt date, per RCPI adjustment.
Market Value per Tax Declaration (MV) Computation
- Use most recent Tax Declaration and Schedule of Unit Market Value prior to claim folder receipt.
- Unit Market Value is grossed up from effectivity date to claim folder receipt date applying RCPI adjustment.
Exclusion of Compensation for Improvements by Third Parties
- Landowners will not be compensated for improvements made by third parties like the government or farmer beneficiaries.
Effectivity and Amendment of Prior Orders
- This Administrative Order amends AO No. 06, Series of 1992 and other inconsistent issuances.
- Takes effect ten days after publication in two national newspapers as per R.A. 6657 Section 49.