ACKNOWLEDGMENT BARIE would like to thank the following offices for their valuable inputs: Legal Affairs Office, Bureau of Land Acquisition and Distribution, Special Concerns Office, Policy and Strategic Research Service, and the Land Use Conversion Committee. Likewise, BARIE would like to thank Mr. Gil R. Tuparan for writing portions of the initial draft.FOREWORD The Department of Agrarian Reform is cognizant of the role that various DAR Frontliners, like the MAROs and ARPTs play in the implementation of the Comprehensive Agrarian Reform Program at the grassroots level. As frontliners, they are the first contact of the program's various clientele. It is from them that the agrarian reform beneficiaries, the landowners, and the general public get their first impressions of DAR as a social development agency. In the course of implementing the program, these field implementors are often faced with issues and problems due to varied understanding and interpretation of the CARP law and its implementing guidelines and issuances. To address this, BARIE, in coordination with other DAR units, produced in 1993 the first edition of the Handbook for CARP Implementors. This resource material which was distributed to all MAROs and other field personnel was developed to enhance the knowledge, attitude and commitment of DAR frontliners in implementing the program. Since last year, however, new implementing guidelines as well as amendments to the existing Administrative Orders were issued. This prompted BARIE to produce the Second Edition of the Handbook for DAR Frontliners to ensure that the resource material is well updated and responsive to the needs of the field implementors. The Handbook which is also presented in a question-and-answer format, contains an updated discussion of the various provisions of the program and its implementing mechanisms, procedures and guidelines. It is hoped that this Handbook will be a valuable reference tool in transforming our field personnel into successful and multi-faceted implementors of the agrarian reform program.(SGD.) ERNESTO D. GARILAOSecretaryHANDBOOK FOR CARP IMPLEMENTORSTABLE OF CONTENTSChapter 1:AGRARIAN REFORM CONCEPTS AND PRINCIPLES1.1Meaning of Agrarian Reform1.2Agrarian Reform Issues:Land Tenure Improvements vs. Support Services1.3Big Farms vs. Small Farms1.4Public vs. Private Lands1.5Agrarian Reform: Counter-Insurgency Tool?Chapter 2:COMPREHENSIVE AGRARIAN REFORM PROGRAMChapter 3:CARP COVERAGE3.1CARP Scope3.2Implementation ScheduleChapter 4:EXEMPTIONS AND EXCLUSIONS4.1Exclusions4.1.1.Poultry, Livestock and Swine Raising4.2Exemptions4.3Procedures Governing Exemption of LandsUnder Sec. 10, RA 66574.4Procedures for Issuance of Exemption ClearanceBased on DOJ Opinion No. 44Chapter 5:LAND ACQUISITION5.1Requisities in Land Acquisition5.2Modes of Acquisition5.2.1Compulsory Acquisition5.2.2Voluntary Offer to Sell5.2.3Voluntary Land Transfer/Direct Payment Scheme5.3Executive Order No. 407 As Amended5.4Procedures in Land Acquisition5.5Prioritization of Lands for Coverage5.6Reconstitution of Title5.7Untitled Private Properties5.8Field InvestigationChapter 6:AGRARIAN REFORM BENEFICIARIES6.1Qualification of Beneficiaries6.2Order of Priority6.3Farmworker Beneficiaries6.4Screening of BeneficiariesChapter 7:LANDOWNER'S RETENTION AND AWARD TOCHILDREN7.1Retention Limit7.2Land Ownership Ceiling7.3Qualifications for the Exercise of the Right of Retention7.4Award to Landowner's Children7.5Selection of Retained Area7.6Procedures for the Exercise of the Right of Retention and Award to Qualified Children7.7When to Exercise the Right of Retention7.8Obligations of Landowners and Limits to the Disposition of theRetained Areas7.9Tenants in Retained Areas7.10Retention Under PD 277.11Homestead LandsChapter 8:LAND SURVEYChapter 9:LAND VALUATION AND LANDOWNER'SCOMPENSATION9.1Just Compensation9.2Land Valuation Factors9.3New Land Valuation Formula9.4Summary Administrative Proceedings9.5Concerned Parties' Involvement in the Land Valuation Process9.6Modes of Compensation9.7Land Bank Bonds9.8PD 27 Lands9.9EO 407 Lands9.10Mt. Pinatubo-Affected AreasChapter 10:LAND DISTRIBUTION10.1Basic Principles in Land Distribution10.2Award Ceiling10.3Land Distribution Process10.4Individual vs. Collective Distribution10.5Rights and Obligations of BeneficiariesChapter 11:PAYMENT BY BENEFICIARIES11.1Payment Under RA 665711.2Payment in OLT Lands11.3Payment Under VLT/DPS11.4Payment in Lahar-Affected AreasChapter 12:SUPPORT SERVICES12.1Support Services to Landowners12.2Support Services to Agrarian Reform BeneficiariesChapter 13:AGRICULTURAL LEASEHOLD13.1Laws and Issuances on Leasehold13.2Tenancy Relationship13.3Rights and Responsibilities of Lessee13.4Rights and Responsibilities of Lessor13.5Lease Rental13.6Fixing the Lease Rental13.7Other Related Laws and IssuancesChapter 14:PRODUCTION AND PROFIT SHARING14.1Coverage14.2DAR's Authority14.3Main Features14.4Role of the MAROChapter 15:COMMERCIAL FARM DEFERMENT15.1Meaning of Commercial Farms and Commercial FarmDeferment15.2Rationale for Deferment15.3Requirements15.4Deferment Period15.5DAR's Role During Deferment PeriodChapter 16:LAND USE CONVERSION16.1Definition16.2DAR's Stand on Conversion16.3DAR's Legal Mandate16.4DAR's Role in Conversion16.5Mechanics of Land Use Conversion Application, Approval andMonitoring16.6LGU's Authority to ReclassifyChapter 17:LAND TRANSACTION17.1Laws and Issuances Governing Agricultural Land Transaction17.2Land Transactions Involving Ago-Tourism Development17.3Land Transactions After 15 June 198817.4Right of Pre-emption17.5Right of Redemption17.6Valid Transactions17.7Invalid TransactionsChapter 18:PUBLIC LANDS18.1Public Alienable and Disposable Lands18.2Integrated Social Forestry Program18.3Settlement Areas18.4Public Agricultural Lands Turned Over by the NationalLivelihood Support Fund18.5Lands of the Public Domain Covered by Cancelled or ExpiredPasture Lease Agreements and Timber License Agreements PerEO 40718.6Lands of the Public Domain Covered by Cancelled or ExpiredFishpond Lease AgreementsChapter 19:LANDED ESTATESChapter 20:BARANGAY AGRARIAN REFORM COMMITTEE (BARC)20.1Laws and Issuances on BARC20.2Functions of the BARC20.3BARC Composition20.4BARC Officers20.5Formation of BARC20.6Mediation and ConciliationChapter 21:DAR ADJUDICATION BOARD (DARAB)21.1DARAB JurisdictionHANDBOOK FOR CARP IMPLEMENTORSCHAPTER 1AGRARIAN REFORM CONCEPTS AND PRINCIPLES1.1MEANING OF AGRARIAN REFORM What is Agrarian Reform? Section 3 ofRA 6657has defined agrarian reform as:"the redistribution of lands, regardless of crops or fruits produced, to farmers and regular farmworkers who are landless, irrespective of tenurial arrangement,to include the totality of factors and support services designed to lift the economic status of the beneficiaries,and all other arrangements alternative to the physical redistribution of lands, such as production or profit-sharing, labor administration and the distribution of shares of stock, which will allow beneficiaries to receive a just share of the fruits of the land they work." (Section 3, RA 6657) Basically, agrarian reform is land reform the transfer of control and ownership of agricultural land to the actual tillers plus a package of support services: economic and physical infrastructure support services (ECOPISS), (e.g., credit, extension, irrigation, roads and bridges, marketing facilities), and human resource and institutional development or social infrastructure building and strengthening (SIBS). What is being "Reformed" in Agrarian Reform? Agrarian reform seeks to correct numerous defects in the country's agrarian structure. Foremost among these is the concentration of land ownership in only a few people, such that the huge majority of the population does not have access to land. According to the 1980 Census of Agriculture, farms less than three hectares in size predominate in the Philippines, representing nearly 70% of the 3.4 million total number of farms. However, they cover only 30% of the country's 9.7 million hectares total farm area. In contrast, farms with areas of more than 10 hectares are very few, constituting only 3.5% of the number of farms. Yet they cover 26% of the farm area. So what's wrong with that? The concentration of the ownership of lands in the hands of a very few means that the majority is deprived of the opportunity to use land as a basic production resource. The failure to access land results in unemployment, low incomes, low productivity, poor purchasing power, and sluggish rural economies.

A more equitable distribution of land ownership, on the other hand, promotes a more equitable distribution of income which, in turn, promotes greater economic activity. More producers and income earners, require more services and goods which other sectors of the economy produce. The increase in domestic demand and production results in broadbased, sustainable economic growth. And that's only the economic side of it. With improved standards of living, greater people participation in the community's affairs is expected. This will lead to a more dynamic and genuine democracy.1.2AGRARIAN REFORM ISSUES:LAND TENURE IMPROVEMENT vs.SUPPORT SERVICES DELIVERY Land redistribution is so costly, why don't we just use the money for credit, extension, infrastructure, post harvest facilities, etc., for greater productivity? Such a strategy would benefit those who own or control the land. It is not surprising, therefore, that more often than not, it is a strategy propounded by those who already own land. For the benefits of agricultural investments to seep down and reach the lower economic strata, inequitable land ownership structure will have to be dismantled first. Broadening the land ownership base makes agricultural development more quickly and easily felt by the majority.1.3AGRARIAN REFORM ISSUES:BIG FARMS vs.SMALL FARMS Aren't small farms less efficient and less productive? Instead of breaking up the lands, shouldn't we consolidate them into plantations to achieve economies of scale? The argument that large farms are more efficient than small farms is usually invoked by those who own export and cash crop plantations as an excuse to exclude their landholdings from agrarian reform. The issue can be answered by examining whether economies of scale do exist. A study made on coconut and other tree crops did not show any increasing yield per hectare as farm size increases. In the case of sugar, another study has shown that average production cost per hectare, in fact, tends to be higher for larger farms. (Adriano, Quisumbing, and Hayami, Toward an Alternative Land Reform Paradigm, 1990).

Furthermore, if breaking up the lands would not be economically viable, then this need not be done. Agrarian reform can be undertaken by breaking up the land ownership pattern but farming can be done collectively.1.4AGRARIAN REFORM ISSUES:PUBLIC vs.PRIVATE LANDS Why don't we just distribute public and government-owned lands? Why are we covering the private farms which are productive? Productive private lands are covered under agrarian reform for various reasons. These include:a.Public and government-owned lands already have occupants and claimants. The sheer extent of landlessness makes coverage of private lands inevitable;b.One of the pillars of agrarian reform is the principle that the tiller of the land has the primacy of the right to own it;c.It is in productive private lands, particularly where the necessary investments have been made, where the beneficiary has greatest chances of success.1.5AGRARIAN REFORM:COUNTER-INSURGENCY TOOL? Will agrarian reform cure all of the country's ills?

No, although it is a step in the right direction. The country has too many problems. But attempts to solve them will not yield sustainable results unless the root cause is addressed inequitable distribution of resources. Since the Philippines is basically an agricultural country, land is the most important resource. By addressing the problem of inequitable distribution of the land, agrarian reform is a major step towards resolving the country's problems. Is agrarian reform an anti-insurgency tool? No, agrarian reform is not being carried out to solve the insurgency problem. However, agrarian reform answers the clamor for social justice and the upliftment of the socio-economic status of the landless. It provides a peaceful means for radical social change and liberation from poverty.CHAPTER 2COMPREHENSIVE AGRARIAN REFORM PROGRAM What is the constitutional mandate for agrarian reform? Agrarian reform derives its mandate from basic principles enshrined in the Constitution. The Philippine Constitutions of 1935, 1973 and 1987 all attest to this. The1935 Constitutionmandated a policy of social justice to insure the well-being and economic security of the people. The1973 Constitutionprovided that "The State shall formulate and implement an agrarian reform program aimed at emancipating the tenant from the bondage of the soil." The1987 Constitutioncontains more specific provisions on agrarian reform.Article II, Declaration of Principles and State Policies, Section 21 "The State shall promote comprehensive rural development and agrarian reform."Article XII, National Economy and Patrimony, Section 21 "The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, . . ."

Article XIII, Social Justice and Human Rights, Section 4 "The State shall, by law, undertake an agrarian reform program founded on the right of farmers and regular farmworkers, who are landless, to own directly or collectively the lands they till or in the case of other farmworkers, to receive a just share of the fruits thereof." "The State shall encourage and undertake the just distribution of all agricultural lands, subject to such priorities and reasonable retention limits as the Congress may prescribe, taking into account ecological, development or equity considerations, and subject to the payment of just compensation. "In determining the retention limits, the State shall respect the right of small landowners.The State shall further provide incentives for voluntary landsharing."Article XIII, Section 6 "The State shall apply the principles of agrarian reform, whenever applicable in accordance with law."What presidential issuances and legislations provide the legal mandate for the Comprehensive Agrarian Reform Program?Various administrations, from the Commonwealth to the Philippine Republic have issued decrees and passed legislations on agrarian reform. Under the previous administration,Proclamation No. 131andExecutive Order No. 229, both dated 22 July 1987 were issued when then President Corazon C. Aquino still exercised legislative powers. These instituted the Comprehensive Agrarian Reform Program (CARP) and provided the mechanism for its implementation.Republic Act No.6657:An Act Instituting a Comprehensive Agrarian Reform Program to Promote Social Justice and Industrialization, Providing the Mechanisms for its Implementation and/or other Purposes, was subsequently passed by Congress, signed into law on 10 June 1988 and became effective on 15 June 1988. This is now known as the Comprehensive Agrarian Reform Law (CARL) of 1988. (By tradition, the anniversary of CARP is commemorated on this date).CHAPTER 3CARP COVERAGE3.1CARP SCOPE What is the scope of CARP? The ownership or control of about 10.3 million hectares1of agricultural land, representing about one-third of the total land area of the Philippines shall be transferred over a ten-year period to an estimated 3.9 million beneficiaries.

What lands are covered by CARP? The CARP covers, regardless of tenurial arrangement and commodity produced, all public and private lands devoted to or suitable for agriculture and not classified as mineral, forest, residential, commercial or industrial' land. The two criteria for coverage, therefore, are (1) suitability of the land for agriculture; and (2) its classification. Specifically, the following lands are covered by CARP:a.all alienable and disposable lands of the public domain devoted to or suitable to agriculture;b.all lands of the public domain in excess of the specific limits as determined by Congress;c.all other lands owned by the government devoted to or suitable to agriculture; andd.all private lands devoted to or suitable to agriculture regardless of the agricultural products raised or that can be raised therein. (Section 4RA 6657) Other major issuances on CARP are:Executive Order No.228 dated 17 July 1987declared full land ownership to qualified farmer-beneficiaries covered byPresidential Decree No.27determined the value of remaining unvalued rice and corn lands subject toPD 27, and provided for the manner of payment by the farmer-beneficiaries and the mode of compensation to the landowners. Executive Order No.129-A dated 26 July 1987provided for the strengthening of the Department of Agrarian Reform as the lead agency responsible for the implementation of CARP.3.2IMPLEMENTATION SCHEDULE When are these lands covered? All lands within the scope of CARP have been covered by the program beginning 15 June 1988, the date of CARP's effectivity. However, in consideration of the capacity of the Government to implement the program, the acquisition and distribution of agricultural lands covered by the program have been prioritized as follows:

Phase I This started immediately upon effectivity of the law and is programmed to be completed within four years (1988-1992)*rice and corn lands which are covered byPD 27;*idle or abandoned;*voluntarily offered;*foreclosed by government financial institutions (GFIs);*acquired by the Presidential Commission on Good Government (PCGG); and*owned by the Government Phase II This also started in 1988 and is programmed to be completed in four years (1988-1992).*all public agricultural lands which are to be opened for new development and resettlement; and*private agricultural lands with areas above 50 hectares in so far as the excess over 50 hectares is concerned Phase III-A This started on the fourth year and is programmed completed within three years (1992-1995)*private agricultural lands with areas from 24 to 50 hectares, in so far as the excess over the retention limit. Phase III-B This is programmed to start on the sixth year and to be completed within four years (1994-1998)*private agricultural lands with areas above the retention limit up to 24 hectares Public lands and other lands owned by the government and government-owned or controlled corporations which are leased and operated by multinational corporations or associations were programmed for immediate acquisition and distribution right after the effectivity of the law for completion within three years (1988-1991). (Sections 6 and 8,RA 6657) Does the order of priority mean that all areas under Phase II must first be acquired and distributed before those in Phase III can be covered? Strictly speaking, no. Starting 15 June 1994, Phase III-B lands can already be acquired and distributed even if not all Phase II lands have been covered. However, given DAR's backlog in covering even those private agricultural lands 50 hectares and above, and the backlog in voluntary offer to sell, for practical purposes, priority should be given to the completion of backlog in the earlier phases. Given such phasing, how many hectares can now (1994) be acquired if a landowner's property has an area of?a.40 has > 40 less 535 has.b.70 has > 70 less 565 has.c.20 has > 20 less 515 has.* *if there is a backlog, unless voluntarily offered, it is advised that this land not be covered yet. Instead, give priority to the completion of the backlog. This example considers only the landowner's retention right but does not take into account the award to qualified children. The opinion of some that in the case of (a) in the example, only 16 hectares can be compulsorily acquired (40 less 24 has.) has been taken by DAR to have no legal basis. This has been clarified underMemorandum Circular No. 4, Series of 1993.CHAPTER 4EXEMPTIONS AND EXCLUSIONS4.1.EXCLUSIONSWhat lands are not covered by CARP?The following lands are not covered by CARP:a.those which are not suitable for agriculture, and those which are classified as mineral, forest, residential, commercial or industrial land;b.those which have been classified and approved as non-agricultural prior to 15 June 1988 as ruled underDepartment of Justice Opinion No. 44, Series of 1990;c.those which are exempt pursuant to Sec. 10,RA 6657;d.those which are devoted to poultry, swine, or livestock raising as of June 15, 1988 pursuant to the Supreme Court ruling onLuz Farms vs. The Honorable Secretary of Agrarian Reform (G.R. No. 86889, 4 December 1990); ande.those which are retained by the landowner (not covered insofar as land acquisition and distribution but covered with respect to other provisions, particularly leasehold).4.1.1POULTRY, LIVESTOCK AND SWINE RAISINGWhat was the basis of the Supreme Court in ruling that poultry, swine and livestock farms are not covered by CARP?The Supreme Court checked the intent of the framers of the Constitution and determined that poultry, swine, and livestock farms are not included in the scope of the agrarian reform program constitutionally mandated to be implemented.

Are all agricultural lands devoted to livestock, poultry and swine raising now automatically excluded from CARP coverage?No. To qualify for exclusion, the following requirements must be met:1.The land or portions thereof must have been exclusively, directly and actually used for livestock, poultry and swine raising as of 15 June 1988.2.The farm devoted to the above purposes must satisfy the animal/land ratio, as well as animal/infrastructure ratio as provided for in Section III-B ofAdministrative Order No. 09, Series of 1993entitled "Rules and Regulations Governing the Exclusion of Agricultural Lands Used for Livestock, Poultry and Swine Raising from the Coverage of CARP".Can a landowner now convert his crop land to a poultry farm and then apply for exclusion from CARP?No, as stated inAO 03-93, the land must already be devoted to livestock, poultry and swine raising as of 15 June 1988. Nevertheless, the landowner who wishes to convert his crop land for this purpose must apply for conversion, the processing of which shall be governed byAO Nos. 1and2, Series of 1990. Among other requirements, there should be:1.the consent of agrarian reform beneficiaries and/or their waiver of rights; and,2.certification from the Regional Director of the Department of Agriculture that the poultry, livestock or swine project is of greater economic value than the present agricultural use.Conversion of the crop land without the benefit of conversion approval will be construed as an intent to avoid application ofRA 6657and shall be considered as invalid and illegal. The land will be covered under CARP without prejudice to the filing of charges against the landowner.Suppose a landowner has been granted exclusion from CARP for his landholding devoted to livestock raising but subsequently, he/she stopped its operations and went into crop production, can the land still be subject to CARP?Yes, the area or portion no longer used for livestock raising purpose shall automatically revert to the category of agricultural land and shall be covered by CARP.What are the procedures in applying for exclusion of a landholding devoted to livestock, poultry and swine raising?1.Landowner files the application for exclusion with the DAR Provincial Agrarian Reform Office, together with the documentary requirements;2.The PARO, with the assistance of the BARC, the MARO, the Municipal Livestock Inspector, and a livestock/poultry and swine specialist of the DA shall conduct a field investigation, and prepare report of findings and recommendations for submission to the Regional Director.3.Regional Director undertakes final review and evaluation of the application and issues the Order of Exclusion or Denial.4.2EXEMPTIONSWhat lands are exempted from CARP coverage?The following are exempted from the coverage of CARP:a.Lands actually, directly, and exclusively used and found to be necessary for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, watersheds and mangroves, national defense, school sites and campuses including experimental farm stations operated by public or private schools for educational purposes, seeds and seedlings research and pilot production centers, church sites and convents appurtenant thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds and cemeteries, penal colonies and penal farms actually worked by the inmates, and government and private research and quarantine centers; andb.Lands with eighteen percent (18%) slope and over, except those already developed as of 15 June 1988. (Sec. 10,RA 6657)What is the scope of the exemption that may be granted?The exemption means that the subject parcel of land will not be acquired and distributed under the CARP for as long as the reasons for the exemption continue to exist. However, the other components of the program, e.g., leasehold and the Integrated Social Forestry Program may be implemented where applicable.A state college claims that although part of its property is cultivated by farmers, that area cannot be covered under CARP because it is reserved for the future expansion of the campus. Is that parcel exempted?The area reserved for future expansion appears not to be actually and directly used for a campus. Unfortunately, in the case of theCentral Mindanao University vs. DARAB(CA-G.R. No. 19174 dated 23 August 1990), the Supreme Court ruled that the University has the prerogative to determine whether a particular part of the school property is necessary for educational purposes. Therefore, in this case, that parcel is exempted.A landowner claims that his agricultural land is exempted because he has recently developed it into a pilot production center for hybrid seeds. Is the landholding exempted?No. The four conditions must have been all present as of 15 June 1988.

A landowner was granted exemption because his agricultural land was found to be a qualified private research center for corn breeding. Subsequently, he gave up his breeding operations and went into commercial production of feed grains. May the landholding be covered?Yes. For the exemption to continue, the reason for which the exemption was granted must continue to exist.A parcel of land cultivated by farmers is found to be within a forest reserve. May it be immediately covered by DAR under CARP?No. Coverage while possible, will have to wait until Congress, taking into account ecological, developmental and equity considerations, shall have determined by law the specific limits of the public domain. Thereafter, a reclassification of the said areas as alienable and disposable land will also have to be done. (Sec. 4,RA 6657)Why are lands with 18% slope and undeveloped exempt from CARP coverage?The exemption is specifically mentioned in Section 10,RA 6657and is based on the Forestry Code which provides that such lands should not be disposed of and developed for agriculture because this type of land is highly susceptible to soil erosion. The principle is debated in the light of cultural practices which could make the preservation of the ecological balance in such areas feasible. However, until and unless the laws are changed, such lands are not covered by CARP.

Since lands 18% slope or over if developed are not exempt from CARP, can DAR subject these lands to acquisition and distribution?Such lands can be allocated to qualified occupants but the manner of acquisition and distribution depends on the following:1.If classified as forest land, they shall be allocated by the DENR under the Integrated Social Forestry Program;2.If classified as alienable and disposable, they shall be allocated by DENR and DAR pursuant to the provisions of the Public Land Act and the Joint DAR-DENR AO No. 2, Series of 1988; and3.If private agricultural land, then, they shall be acquired in accordance with the provisions ofRA 6657.What Administrative Orders govern the exemption of lands from CARP?1.DAR Administrative Order No. 10, Series of 1994, "Amending AO No. 13, Series of 1990 entitled Rules and Procedures Governing Exemption of Lands from CARP Coverage under Section 10 of RA No. 6657, to Authorize all Regional Directors to Hear and Decide Applications for Exemption for All Land Sizes"2.DAR Administrative Order No. 06, Series of 1994, "Guidelines for the Issuance of Exemption Clearances based on Sec. 3 (c) RA 6657 and the department of Justice (DOJ) Opinion No. 44 Series of 1990" 4.3PROCEDURES GOVERNING EXEMPTION OF LANDS UNDER SEC. 10,RA 6657What are the procedures followed in securing exemption of lands under Sec. 10 ofRA 6657from CARP coverage?The person/s or representative/s owning, administering or managing the landholdings may file for exemption of the lands from CARP coverage at the Municipal Agrarian Reform Office.

1.The MARO shall prepare an Application for Land Exemption Folder (ALEF) which contains the following documents:*written application*ownership documents and other muniments of title*evidence to support application*copy of proclamation, topographic map, sketch map, area development plan, affidavit, certification from government agency, etc.2.MARO conducts investigation of the land with the assistance of the BARC and prepares report of findings and recommendations and forwards them together with the ALEF to the Provincial Agrarian Reform Officer.3.The PARO reviews and evaluates the ALEF and prepares comments, findings and recommendations. If all documents are in order, forwards them to the Regional Director.4.The RD reviews and evaluates the ALEF and the findings and recommendations of the PARO and the MARO. If documents are in order, issues an Order of Approval or Order of Denial. This applies to applications for exemption for all land sizes.5.The RD forwards the Order to the PARO for distribution to the contending parties and counsel, if any, copy furnished the Office of the Secretary, Undersecretary for Field Operations, Legal Affairs Office and the Management Information Service within 15 days from the release of the Order. The Order becomes final 15 days from receipt of the same, unless an appeal is made to the DAR Secretary.6.In case of denial of the application, DAR shall cause the acquisition and distribution of the property.What is the recourse of a party who disagrees with the decision of the Regional Director?Any party who disagrees with the RD's decision may file a written motion for reconsideration within 15 days from receipt of the Order. The RD shall then rule on the motion for reconsideration. Should the motion for reconsideration be deemed, the aggrieved party could appeal to the DAR Secretary within the balance of the 15 day period. The Secretary shall render a decision within 30 days after receipt of the appeal. 4.4PROCEDURES FOR ISSUANCE OF EXEMPTION CLEARANCE BASED ONDOJ OPINION NO. 44What are the procedures for the issuance of exemption clearances based onDOJ Opinion No. 44?1.The landowner or his duly authorized representative files the application for exemption with the Regional Office of the DAR where the land is located. The application should be accompanied by the following documents:a.duly notarized Special Power of Attorney, if the applicant is not the landowner himself;b.certified true copies of the list of the land which is the subject of the application;c.current tax declaration covering the property;d.location or vicinity map;e.certification from the Deputized Zoning Administration that the land has been reclassified to residential, industrial or commercial use prior to 15 June 1988;f.certification from the HLRB that the pertinent zoning ordinance has been approved by the Board prior to 15 June 1988;g.certification from the National Irrigation Administration that the land is not covered byAO No. 20, Series of 1992, i.e., that the area is not irrigated, nor scheduled for irrigation rehabilitation nor irrigable with firm funding commitment, andh.proof of payment of disturbance compensation, if the area is presently being occupied by farmers, or waiver/undertaking by the occupants that they will vacate the area whenever required.2.The Regional Office conducts joint investigation with the duly authorized representatives of the DAR provincial and municipal offices that have jurisdiction over the property, and a report prepared within thirty (30) days from the filing of completed application.The joint investigation report shall contain information on:a.presence of potential beneficiaries;b.payment of disturbance compensation;c.initial activities related to coverage;d.certification from the MARO on whether or not the land has been placed underPD 27or whether a CLOA or EP has been issued over said property.3.The investigation report is submitted to the Regional Director who prepared the Order for Denial or Grant of the Exemption Clearance not later than fifteen (15) days from the receipt of the report.IaEScC4.The exemption folder, together with the draft order is forwarded to the Legal Affairs Office of the DAR Central Office which shall review the same and upon proper review forwards the folder to the Office of the Secretary not later than fifteen (15) days from receipt of the folder.5.The Secretary signs the Order for Denial or Grant and a copy of the order is furnished to the Land Use Conversion Committee for purposes of monitoring and statistical information.CHAPTER 5LAND ACQUISITION5.1REQUISITES IN LAND ACQUISITIONWhat lands are acquired under CARP?Only the private lands devoted to or suitable for agriculture, regardless of the agricultural products raised or can be raised therein, are subject of land acquisition. The lands of the public domain suitable for agriculture already belong to the State and are just distributed through either Free Patents for Alienable and Disposable (A&D) lands or Certificates of Land Ownership Awards (CLOAs) for resettlement sites. In addition, stewardship contracts are awarded for public lands covered by the Integrated Social Forestry Program (ISFP).It must be noted that the private agricultural lands include those owned by private entities and those owned or held by government agencies, corporations, and instrumentalities.Specifically, the following lands may be acquired under CARP:a.rice and corn lands underPD 27/EO 228;b.idle or abandoned lands;c.lands foreclosed by private and government financial institutions;d.private agricultural landse.public lands suitable for agriculture;f.lands acquired by PCGG;g.lands used by multinational corporations

What are the requisites in land acquisition?The following requirements must be met for land acquisition to be completed:a.That the land is privately owned and found suitable for agriculture;b.That there are beneficiaries willing to take over the ownership of the land and make it productive;c.That the landowner is paid just compensation; or a trust deposit is made in his/her name if the value is contested; andd.That title to the land is transferred in the name of the Republic of the Philippines.However, full payment of just compensation and transfer of title to the Republic of the Philippines are not requisites in VLT/DPS. Moreover, underEO 407, the payment of just compensation to the government instrumentality as landowner may come even after land distribution.5.2MODES OF ACQUISITIONWhat are the modes of acquiring lands for distribution under CARP?Private agricultural lands covered by CARP are acquired through any of the following modes:a.Compulsory Acquisition (CA);b.Voluntary Offer to Sell (VOS);c.Voluntary Land Transfer/Direct Payment Scheme (VLT/DPS);d.Operation Land Transfer (OLT) underPD 27andEO 228; ande.Executive Order No. 407, as amended byEO 448andEO 506What are the basic differences among these modes?a.OLT is governed byPD 27andEO 228and has been in operation since 1972. It follows a different set of procedures, particularly in land valuation.b.Land acquisition under OLT and CA is done through the mandate of the law whether or not the landowner disagrees to part with his property.c.CA follows the schedule of CARP implementation based on the area of the landowner's landholdings. In contrast VOS may be done even for lands not yet scheduled by law to be acquired.d.EO 407as amended pertains only to government agencies as landowners in a propriety capacity, or to public A & D lands under their administration by virtue of presidential proclamation.e.VLT/DPS, on the other hand, is a voluntary arrangement entered into by a landowner and a qualified farmer-beneficiary to directly transfer the land to the beneficiary under terms and conditions mutually agreed by them but with payment terms not less favorable to the farmer than if it were the government purchasing the land and transferring it to the beneficiary.5.2.1COMPULSORY ACQUISITIONWhat are the existing administrative orders on compulsory acquisition of lands?

These Administrative Orders are:a.Administrative Order No. 11, Series of 1994 Revising the Rules and Regulations Covering the Valuation of Lands Voluntarily Offered or Compulsorily Acquired as Embodied in Administrative Order No. 06, Series of 1992;b.Administrative Order No. 01, Series of 1993 An Order Amending Certain Provisions of Administrative Order No. 09, Series of 1990, entitled "Revised Rules Governing the Acquisition of Agricultural Lands subject to Voluntary Offer to Sell and Compulsory Acquisition Pursuant to RA 6657"[This AO supersedesAO No. 12, Series of 1989,AO No. 09, Series of 1990, andAO No. 10, Series of 1991]c.Administrative Order No. 12, Series of 1990 Policy Guidelines and Operating Procedures in the Identification and Acquisition of Idle and Abandoned Lands.What lands are covered by compulsory acquisition?Except in the case of tenanted rice and corn lands underPD 27, which are acquired following a different set of rules, compulsory acquisition (CA) is done for all private agricultural lands which become due for coverage following the phasing of implementation earlier discussed. However, CA is suspended in those cases where the landowners opt for other modes of compliance, e.g., voluntary land transfer or stock distribution option. CA is resumed once the negotiations in these other modes fail.Compulsory acquisition is also done in idle and abandoned lands regardless of their size and phasing, and in lands whose commercial farm deferment is revoked.What are idle or abandoned lands?Idle or abandoned lands refer to agricultural lands not cultivated, tilled or developed to produce any crop nor devoted to any specific economic purpose continuously for a period of three (3) years immediately prior to the receipt of notice of acquisition by government as provided underRA 6657. They do not, however, include the following:a.those that have become permanently or regularly devoted to non-agricultural purposes;b.those that have become unproductive by reason of force majeure or any other fortuitous event, provided that prior to such event, such land was previously used for agricultural or other economic purpose. (Section 3,RA 6657)Can the DAR compulsorily acquire a landholding whose ownership is under litigation or judicial proceedings?Yes, if it is clear that no matter what the outcome of the litigation may be, the land is still covered under CARP. In such case, the DAR shall select the retained area and the compensation for the land shall be held in trust pending the resolution of the disputes.However, if one or both of the parties to the case are groups of individuals, the hectarage involved in the possible exercise of the right of retention should be considered in the acquisition of the land.However, in the case of PCGG/APT acquired assets whose ownership is contested in court, the DAR and the PCGG have an understanding that a proper motion will be filed in court to allow DAR to acquire such property, even pending litigation.What if the person who is declared by the court as the lawful owner subsequently disagrees with the area chosen by DAR for retention? What if he has exercised retention in another property?The CLOA could be amended by the DAR or the landowner filing a petition with the DARAB. However, if the landowner is no longer entitled to retention, then the area previously set aside for retention may also be covered.A couple owning only 30 hectares died in January 1988 leaving as heirs six children with ages ranging 25-40. No partition of the property has been done and the children do not own other agricultural lands. How many hectares may be compulsorily acquired?None. Even if the title is still in the name of the couple, ownership automatically transferred to the children upon their parent's death. The six children are already the owners. Thus, at five hectare retention per landowner, the entire 30 hectares may be retained.AO-01, Series of 1989allows the registration of a deed of extra-judicial partition of the property of a deceased who died prior to 15 June 1988.Note, however, thatif the parents died after 15 June 1988, the land may be entirely acquired and distributed if the children are neither actual tillers or direct farm managers. If they are, they will each be entitled to an award of three (3) hectares. Otherwise, they will only be entitled to the compensation for the land. But the land will be acquired and distributed under CARP. Moreover, the DAR and the ROD will no longer allow the partition of the property except in favor of the qualified farmer-beneficiaries. This is in line with the fact thatas of 15 June 1988, by operation of the law, all lands in excess of the retention limit are already covered by CARP.If in the course of CARP coverage, the owner alleges that the land is exempted under Sec. 10,RA 6657, what should you do?Exception under Section 10 ofRA 6657is not automatic. UnderAO-13, Series of 1990, persons or representatives of persons owning, administering or managing lands believed to be actually, directly and exclusively used and are necessary for any of the purposes under Section 10 should file a written application with DAR. This application should be approved by the Regional Director.The MARO should, therefore, check if an application has been filed and if the application has been duly approved. Otherwise, the MARO should treat the matter as a CARP protest and let the Regional Director rule on the matter. (AO-09, series of 1994).If in the course of coverage, the owner alleges that the property is already reclassified as residential since 1986, what should you do?The MARO should determine if the property is covered byDOJ Opinion No. 44and whether an application for exemption has been filed by the landowner. He should also investigate the actual land use and whether the land is irrigated, irrigable or is programmed for irrigation. He should also check the zoning plan or municipal/city ordinance approved by the HLURB. Only if it is clear that the said landholding does not fall within any of the above, should the MARO proceed with the acquisition of the property.If in the course of coverage, the owner alleges that about one year before the notice of acquisition, he has filed an application for conversion, what should you do?The MARO should check the allegation, i.e., whether there really was an application for conversion filed a year ago. If there is none, conversion is not possible because the notice of acquisition has already been issued. If there is, the issue of conversion should first be resolved.5.2.2VOLUNTARY OFFER TO SELL (VOS)What is the VOS scheme?VOS is a scheme wherein landowners come forward and voluntarily offer their agricultural lands for coverage regardless of the phasing. The DAR encourages this mode because VOS generally ensures the cooperation of the landowners.

What are the existing policy guidelines governing VOS?The implementing policy guidelines on VOS are:a.Administrative Order No. 11, Series of 1994 Revising the Rules and Regulations Covering the Valuation of Lands Voluntarily Offered or Compulsorily Acquired as Embodied in Administrative Order No. 06 Series of 1992;b.Administrative Order No. 01, Series of 1993 An Order Amending Certain Provisions of Administrative Order No. 09, Series of 1990 Entitled "Revised Rules Governing the Acquisition of Agricultural Lands Subject to Voluntary Offer to Sell and Compulsory Acquisition Pursuant to RA 6657";[This AO supersedesAO No. 03, Series of 1989,AO No. 14-AandAO No. 19, Series of 1989,AO No. 09, Series of 1990, andAO No. 10, Series of 1991]c.Administrative Order No. 05, Series of 1992 Clarificatory Guidelines and Amendments to AO No. 09, Series of 1990.Where should the landowner file the application for VOS?Application for VOS can be filed either at the Central Office, or at any field office of DAR. However, the receiving office should forward the application to the MARO of the municipality where the land is located.What incentives are given to landowners who offer their lands under VOS?The cash portion of the compensation to the landowner is increased by five percent (5%), while the LBP bond portion is correspondingly decreased by five percent. However, this incentive is not available to banks and other financial institutions.It should be noted that the total compensation is not increased, only the proportion of the cash component.May an agricultural land which has been mortgaged also be voluntarily offered under CARP?Yes. In this case, the MARO should secure a statement of account from the creditor and recommend the settlement of the obligation through payment in LBP bonds.Can government financial institutions voluntarily offer foreclosed but redeemable properties which are not yet transferred to them?No. The GFIs have to wait for the expiration of the redemption period.Are landowners allowed to withdraw lands offered under the VOS scheme?No. The exceptions are the instances provided in Administrative Order No. 05, Series of 1992, namely:a.If the subject landholding is part of the landowner's retained area, provided the landowner has not yet received any payment;b.If the landowner wants to shift the mode of acquisition from VOS to VLT/DPS;c.If the offered land is to be covered in 1994 and the landowner wants to wait for the compulsory coverage under Phase III-B. If the Notice of Valuation has been served, however, the withdrawal may no longer be allowed.d.If the DAR determines the landholding to be more suitable for a town site, resettlement or institutional siteto address a calamity situation. It should be noted that this case is limited to calamity situations. Further, the approval of the withdrawal of the VOS does not automatically authorize the land use conversion of the land. The owner must still apply for conversion.What are the instances in which the DAR may reject a VOS application?The DAR may reject a voluntary offer to sell in the following instances:a.If the land is not suitable for agriculture, or has more than 18% slope and is underdeveloped;b.If there are no takers or beneficiaries of the land for valid reasons (e.g., peace and order situation) without prejudice to future coverage of the area under CARP; andc.If the only identified agrarian reform beneficiaries (ARBs) are the qualified children of the landowner.5.2.3VOLUNTARY LAND TRANSFER/DIRECT PAYMENT SCHEME (VLT/DPS)What is the VLT/DPS mode?VLT/DPS is a scheme wherein a landowner of an agricultural land covered by CARP and the qualified beneficiaries of such land agree to the direct transfer of the ownership of the land, as provided for under Sections 20 and 21 ofRA 6657. The area to be transferred should not, however, be less than the area which the government through compulsory acquisition would otherwise acquire.Administrative Order No. 13, Series of 1991, embodies the rules and procedures governing VLT/DPS.May a landowner unilaterally decide to distribute his land through the VLT/DPS scheme?No. An agreement between the landowner and the qualified ARBs as approved by the DAR is necessary.What is the basic requirement in VLT/DPS?It is imperative that the ARBs give theirinformed consentto the landowner's VLT/DPS proposal. Specifically, this means that the ARBs should be made aware of their rights and options under the law, particularly, the terms and conditions of land transfer under the "regular" compulsory acquisition mode.Among others, the field implementor (Municipal Agrarian Reform Officer or Agrarian Reform Program Technologist MARO or SARPT/ARPT) must explain to the ARBs: (1) that the land will sooner or later be acquired under CA subject to the phasing; and (2) about how much they will have to pay under the CA mode.VLT/DPS is a scheme favorable to the Government for two reasons. First, Government does not have to pay for the land. Second, the agreement between the two parties facilitates land acquisition and distribution. The DAR, however, ought to ensure that the beneficiaries know what they are entering into and that terms and conditions of the VLT/DPS are not disadvantageous to the ARBs.Who are the qualified beneficiaries under VLT/DPS?The qualified beneficiaries are the same as those who would be beneficiaries if the land were to be covered under compulsory acquisition or voluntary offer to sell. (See Sec. 22,RA 6657).What is the prescribed period for the completion of VLT/DPS negotiations?Negotiations for VLT/DPS between the landowner and the beneficiaries must be completed and the agreement arrived at must be submitted within one (1) year from the time the DAR receives the notice of application for VLT/DPS.What if negotiations for VLT/DPS are not resolved after one year?If VLT/DPS negotiations remain unresolved after one year, the land shall be covered under compulsory acquisition.When should the transfer of possession and land ownership of the land be done?The transfer of possession and ownership should be done immediately after the submitted VLT/DPS agreement is approved by the DAR. Certificates of Land Ownership Award (CLOA) with the proper annotations to protect the landowner shall be issued to the beneficiaries.May an agricultural land mortgaged to a bank be the subject of a VLT/DPS?No. Land titles with existing liens and encumbrances shall not be covered under the VLT/DPS scheme. This is a ruling made by DAR to simplify VLT/DPS transactions, particularly to facilitate the immediate transfer of title to the ARBs.5.3EXECUTIVE ORDER NO. 407AS AMENDEDWhat is the significance ofEO 407?Executive Order No. 407dated 14 June 1990, entitled "Accelerating the Acquisition and Distribution of Agricultural Lands, Pasture Lands, Fishponds, Agro-Forestry Lands and Other Lands of the Public Domain Suitable for Agriculture" directs all government instrumentalities, including government financial institutions (GFIs) and government-owned or controlled corporations (GOCCs)to immediately transfer to DAR all their landholdings suitable for agriculture for immediate distribution to qualified beneficiaries under CARP.EO 407is a concrete act of the Government to divest itself of its agricultural landholdings as an example for private landowners to follow. Moreover, inasmuch as the landowners involved are also Government agencies,EO 407has facilitated the acquisition by the DAR of thousands of hectares of agricultural lands for distribution under CARP.What lands may be acquired for distribution pursuant toEO 407as amended byEO 448 Series of 1991andEO 506 Series of 1992?EO 407covers the following:*all agricultural lands owned or controlled by government departments, agencies or instrumentalities, including lands foreclosed by government financing institutions;*lands covered by cancelled or expired Timber License Agreements (TLAs) and Pasture Lease Agreements (PLAs) for redistribution by the DENR, in coordination with the DAR, to qualified ARBs identified by the DAR; and*lands covered by cancelled or expired Fishpond Lease Agreements (FLAs) for redistribution by the Department of Agriculture (DA), in coordination with the DAR to qualified ARBs identified by the DAR.EO 448included within the coverage ofEO 407all reservations or portions thereof, which are suitable for agriculture and are no longer needed for the purpose for which they were established.EO 506, however, further amendedEO 407to exclude:*all existing and proposed national parks, game refuge, bird sanctuaries wildlife reserves, wilderness areas and other protected areas, including old growth or virgin forests and all forests above 1,000 meters elevation or above 50 percent slope until such time that they are segregated for agricultural purposes or retained under the National Integrated Protected Areas System (NIPAS) of DENR.5.4PROCEDURES IN LAND ACQUISITIONWhat are the basic steps in land acquisition?

a.Identification and documentation of the landholdings, landowners and beneficiaries;b.Land survey;c.Review and completion of data/documents;d.Land valuation and compensation; ande.Transfer of title from the landowner to the Republic of the Philippines.What are the changes in procedures for land acquisition contained inAO-01, Series of 1993?a.The number of steps has been reduced by transferring from the DAR Regional Office to the Provincial Office the review and completion of documents before submission of the claim folder to the Land Bank of the Philippines.b.The conduct of the field investigation can proceed even if the LBP representative is unavailable. This was made possible by dividing the Field Investigation Report into two parts. Part I contains data on the landholding and its suitability to agriculture. Part II, on the other hand, provides data inputs for the determination of the land valuation. Part I can be accomplished even without the presence of the LBP representative although the data are subject to review by LBP.c.The conduct of public hearing was deleted. In lieu thereof, the Notice of Coverage, Field Investigation Report and the Notice of Land Acquisition and Valuation shall be posted for a period of one week on the bulletin boards of the barangay/municipal/provincial halls where the property is located.d.CARP forms were simplified and reduced in number.e.The acquisition process has been facilitated by requiring the LBP to immediately open a trust account in the name of the landowner, whether the landowner accepts or rejects the land valuation. Actual release, however, shall be effected only after the landowner's compliance of all the requirements.What is the first step in land acquisition?Land acquisition, regardless of the mode, begins with the identification of landowners, landholdings and beneficiaries covered by CARP.Under the Land Acquisition and Distribution Tracking System (LADTRACKS) and the CARP Scope Validation project, field offices have been tasked to prepare a master list or inventory of landholdings in their area of coverage. This inventory is derived from the LISTASAKA statements, as verified or complemented by the records of the Register of Deeds and Assessor's Offices, review of the municipal town plan and zoning ordinances, field surveys, interview and community consultations, and general knowledge of the land ownership pattern in the barangays or municipalities.With these basic tools, the landowners who own agricultural lands in excess of the retention limit may be easily determined and their lands classified according to the implementation phase or order of priority of CARP.5.5PRIORITIZATION OF LANDS FOR COVERAGEWhat are the criteria for prioritizing the coverage of landholdings in the master list?Quality land distribution cannot be overemphasized. More than just meeting the targets, land distribution should be done with the end in mind of uplifting the farmer beneficiaries' living condition. Priority should, therefore, be given to areas where success of beneficiaries development is paramount. The following should be the basic considerations in the prioritization of covered areas:a.Barangays covered by identified ARCs;b.Level of organization of the farmers Consistent with the people-centered development thrust of the DAR, the higher the level of organization of farmers, the greater should be the priority. This will not only facilitate the land acquisition and distribution process but also hasten the development of viable agrarian reform communities in the area;c.Incidence of agrarian unrest The greater the incidence of unrest, the higher should be the priority to promote the resolution of the agrarian disputes. Utmost care should however, be made to ensure that the landholding is indeed covered by CARP;d.Number of farmers to be benefitted The higher the number, the greater should be the priority, again in line with people-centered development;e.Size of the landholding Inasmuch as nearly the same efforts will have to be expended for either big or small landholdings, it makes sense to put higher priority on the larger landholding;f.Presence of support factors Areas with cooperative landowners, supportive community leaders and local government executives, active BARCs and POs/NGOs, etc. should receive higher priority because it is in these areas where agrarian reform implementation will have greater chances of success;g.Presence of a title over the property Titled properties are easier to acquire because, as it is the norm under our Torren's Title System, the title is the strongest proof of the land ownership. Untitled properties require much more difficult documentation to ensure that the land actually exists and that the current landowner is being addressed. Thus, all other considerations being equal, titled properties should receive higher priority.5.6RECONSTITUTION OF TITLEWhat can be done in case the original title of the land got lost or was destroyed due to fire, flood or force majeure in the register of deeds?In general, lost or destroyed original copies of certificates of title are reconstituted throughjudicial proceedingspursuant to Section 110 of the Property Registration Decree (PD No. 1529). The procedure is prescribed inRepublic Act No. 26and implemented in LRA Circular No. 35 dated 13 June 1983.However,RA 6732as implemented by LRA Circular No. 13 dated 26 July 1989, allows foradministrative reconstitutionwhen the original copies of the certificates of title in the Office of the Register of Deeds are destroyed due to fire, flood, or other force majeure as determined by the LRA administrator, where the destroyed records constitute at least ten percent (10%) of the total number of titles but in no case shall these be less than 500. Thus, administrative reconstitution is allowed in Batangas City, Malolos, Bulacan, and in the provinces of Eastern Samar, Camarines Sur, Isabela, and Oriental Mindoro where the Offices of the Register of Deeds were destroyed by fire.The law also covers administrative reconstitution of copies of original certificates of title destroyed by fire, flood or other force majeure which occurred fifteen years before its effectivity in 1989.What if it is the owner's duplicate copy which is lost while the original is still on file?Then a petition for the issuance of a new owner's duplicate copy shall be filed with the Regional Trial Court. (Sec. 109,PD 1529)Who should file the petition for reconstitution of title?LRA Circular No. 35, Series of 1983 provides that the landowner or an interested party should file a petition for reconstitution with the Clerk of Court of the Regional Trial Court having jurisdiction of said property, in case of judicial reconstitution; or with the Register of Deeds concerned, in the case of administrative reconstitution.However, in order not to delay acquisition and distribution, the DAR issuedMemorandum Circular No. 05, Series of 1994which provides that the duly authorized DAR lawyer can file the petition in the Regional Trial Court in case of judicial reconstitution, or with the Register of Deeds concerned in case of administrative reconstitution, provided that a Notice of Coverage has already been issued covering the property. However, the DAR shall endeavor to secure a written permission from the registered owner/s of lost or destroyed titles.What are the procedures for judicial reconstitution?1.The petition is filed with the Clerk of Court of the Regional Trial Court which has jurisdiction over the property. Such petition is accompanied by a plan and technical description of the subject land, and a certification from the ROD that the original copy of the title was burned, lost, mutilated, etc. Photocopies of the Notice of Coverage shall also be submitted if the DAR is the petitioner.2.The Office of the Solicitor General, Office of the Prosecutor for the City or Province, DENR-LMB, LRA, and ROD concerned are furnished with copies of the petition.3.Publication (twice) in the Official Gazette and posting in the bulletin boards of the respective municipality of the notice of initial hearing. Adjoining owners and interested parties are also furnished copies of the notice.4.Processing in the Land Registration Authority.5.Court proceedings and court decision.6.Surrender of the owner's duplicate Certificate of Title to the ROD.7.Reconstitution proper of a new Original and Owner's Duplicate Certificate of Title by the ROD.What are the procedures for administrative reconstitution?1.The petition accompanied by three (3) photocopies of the owner's authenticated duplicate certificate of title; latest tax declaration and Notice of Coverage (if DAR is the petitioner) and an affidavit regarding circumstances of the property are filed with the ROD concerned;2.Publication and posting requirements;3.Processing by the Reconstituting Officer designated by the LRA Administrator;4.Issuance of Order to Reconstitute by the Reconstituting Officer;5.Review by the LRA Administrator of the Order of Reconstitution and affirmation thereof, if proper;6.Surrender of the Owner's or Co-Owner's duplicate Certificate of Title to the ROD; and7.Issuance of reconstituted title and delivery of owner's or co-owner's duplicate Certificate of Title by the ROD concerned to the landowners or to DAR.Who will shoulder the cost of the reconstitution proceedings?Administrative reconstitution normally does not cost anything, except for incidental costs like photocopies. However, judicial reconstitution requires publication which could be substantial (around P1,500 at 1993 prices). If the petition was filed by DAR, then it shall shoulder this cost chargeable against CARP funds. Otherwise, it will have to be borne by the farmer-beneficiary or the cooperative or farmers association.5.7UNTITLED PRIVATE PROPERTIESCan untitled private properties be placed under CARP?DAR's petition on the issue of placing untitled or unregistered private agricultural lands under CARP is that if there is no adverse claimant over the subject landholding (e.g., there is no court case), then submission of documentary and/or testimonial evidence shall be conclusive proof of ownership. The landholding may be acquired under CARP and the landowner entitled to payment in accordance with pertinent laws and DAR rules and regulations as resolved underDOJ Opinion No. 176, Series of 1992.What if there are two or more claimants and there is a pending court case, to whom shall payment be made?If there are two or more claimants and there is a pending court case, coverage of the land under CARP should proceed and the processing of claim folder should continue without interruption. But payment of said property shall only be effected to the claimant who has been declared by the Court as the lawful owner.What safeguards have been instituted to ensure that untitled and unregistered private agricultural lands being covered by the program are properly supported by adequate documents?UnderAdministrative Order No. 01, Series of 1993, seven items are listed as documentary requirements for processing claim folders of untitled properties. These are:1.Survey plan of the property duly approved by the Land Management Bureau, and if not available, a sketch plan certified to by said office, and technical description thereof;2.Certified copy of the present Tax Declaration in the name of claimant with correct lot number/s and area per approved plan;3.Instruments of acquisition covering the subject property, such as Deed of Sale, Donation, Transfer, etc. in favor of claimant and those of his/her predecessor/s interest;4.Certification of the Assessor concerned showing the Tax Declaration issued, the declarant/s, the area covered, and the basis for the issuances and cancellations thereof pertaining to the property/ies from the first declaration up to the tax declaration issued in the name of the claimant;5.Certification from the Clerk of Court concerned whether or not the property/ies identified in the plan is/are covered by land registration proceedings or civil case, and if the same is used as bond or bail in other court actions;6.Certificates of the DENR-LMS stating the year the property/ies identified in the plan may already be considered as private agricultural land, and the persons having the best claim of ownership thereof; and7.Certification from the Office of the Register of Deeds and Assessor concerned to the effect that as per their records, the property/ies as appearing in the approved survey plan is/are free from all liens and encumbrances.5.8FIELD INVESTIGATION

How will the landowner know that his or her land is being covered by CARP?A landowner who has been identified should be notified by the MARO that his or her landholding is now covered by issuing a Notice of Coverage personally delivered or sent by registered mail. In that Notice, the landowner is also informed of his or her right to select the retained area and of the field investigation which will be conducted on the landholding.A copy of the Notice shall also be posted for at least one week on the bulletin board of the municipal and barangay halls where the land is located.After identifying and documenting the ownership of the land, what must be done next?The suitability of the land covered under CARP should next be established. This is done primarily by undertaking the field investigation of the property to ascertain its suitability, productivity, and tenurial characteristics.Who are involved in the field investigation?Aside from the MARO or ARPT and the landowner concerned, representatives from the Department of Environment and Natural Resources (DENR), Department of Agriculture (DA) and Land Bank of the Philippines (LBP), as well as the BARC and prospective agrarian reform beneficiaries should be invited to participate in the conduct of the field investigation.What if the invited representatives are not available?The field investigation can proceed provided they were given due notice of the time and date of the investigation to be conducted, i.e., they were sent copies of Notice of Conduct of Field Investigation. If it is the LBP representative who is not available, the DAR field implementor(s), together with the other parties shall conduct the field investigation and accomplish Part I of the Field Investigation Report. Such report shall be forwarded to the LBP representative for validation.What if there is a difference in the findings of the DAR and the LBP?In the event that there is a difference or variance in the findings of the DAR and the LBP as to the propriety of coverings the land under CARP, whether in whole or in part, on the issue of suitability to agriculture, degree of development or slope, and on the issue affecting idle lands, the conflict shall be resolved by a composite team composed of DAR, DA, DENR, and LBP representatives which shall jointly conduct further investigation thereon. The team shall submit its written report of findings within five days from the conclusion of the inspection. Such findings shall be binding to both DAR and LBP pursuant to the Joint Memorandum Circular of the DAR, LBP, DENR, and DA dated 27 January 1992. If the issue involved is on the suitability to agriculture and its development, the chairperson shall be the DA representative. If it is on the percentage slope, the DENR representative shall be the chairperson of the team.Why must the BARC and prospective ARBs be involved in the field investigation?It is important to involve not only the other concerned CARP implementing agencies but also the BARC and the prospective beneficiaries because the people from the locality have a wealth of information on the physical, agricultural and tenurial characteristics of the land. It is also wise to involve them from the beginning to generate their support and encourage their crucial participation in the development process.CHAPTER 6AGRARIAN REFORM BENEFICIARIES6.1QUALIFICATIONS OF BENEFICIARIES

What are the qualifications of an agrarian reform beneficiary?To be an agrarian reform beneficiary, one must:a.be landless;b.be at least 15 years old or head of the family at the time the property was transferred in the name of the Republic of the Philippines; andc.have the willingness, ability and aptitude to cultivate the land and make it as productive as possible. (Section 23,Republic Act No. 6657)Items (b) and (c) above are meant to ensure that the recipients of the land will judiciously use it and make it a productive agricultural land.What is the definition of landless?A landless person is defined by Section 25,RA 6657as one who owns less than three (3) hectares of agricultural land. Section 7,RA 6657also provides that an owner-tiller may still be a beneficiary of another land he or she does not own but is actually cultivating to the extent of the difference between the area of the land he/she owns and the award ceiling of three hectares.Thus, a tenant who owns one hectare of agricultural land may still qualify as a beneficiary for two hectares of land.Who are disqualified from becoming beneficiaries?a.Those who fail to meet the qualifications as provided for under Section 22 ofRA 6657.b.Beneficiaries who have culpably sold, disposed or abandoned their lands.c.Beneficiaries whose lands have been foreclosed by the LBP or repossessed by the landowner (in the case of VLT/DPS) for non-payment of an aggregate of three annual amortizations.d.Beneficiaries who have converted their land to non-agricultural use without prior approval by DAR.6.2ORDER OF PRIORITYWhat is the order of priority among the possible beneficiaries?Section 22 ofRA 6657provides that lands covered by CARP shall be distributed as much as possible to landless residents of the same barangay or, in the absence thereof, landless residents of the same municipality.The order of priority then starts with:a.Qualified children. The qualified children of the landowner are the first group entitled to be beneficiaries of the land. They are entitled to receive three hectares each.b.Tenants and Lessees. The next group is composed of the agricultural lessees and share tenants. These farmers are entitled to receive the area of their tillage but not to exceed three (3) hectares, he or she may be awarded an additional area representing the difference, subject to the availability of land.c.The order of priority then goes down as follows:*regular farmworkers;*seasonal farmworkers;*other farmworkers;*actual tillers or occupants of public lands;*collectives or cooperatives of the beneficiaries; and*others directly working on the land.Given such order of priority, must all farmers in a class be allocated three hectares each before anyone in the next class can be identified as also a beneficiary of the land? For example, all regular farmworkers must first be allocated three hectares before any seasonal farmworker can be identified?Strictly speaking, that would be a correct interpretation.The CARP, however, seeks to help as many farmers as possible and make them beneficiaries of the program. Thus, a more liberal interpretation is often better, provided the economic viability of the award is not sacrificed. In this regard, a series of mediation conferences among the possible beneficiaries may be conducted to allow the participatory determination of how many beneficiaries there ought to be and what each beneficiary will receive.6.3FARMWORKER BENEFICIARIESWho is considered a farmworker?Farmworkeris defined as a natural person who renders service for value as an employee or laborer in an agricultural enterprise or farm regardless of whether his/her compensation is paid on a daily, weekly, monthly or"pakyaw"basis.

What are the different categories of farmworkers?Regular farmworkeris a natural person who is employed on a permanent basis by an agricultural enterprise or farm.Seasonal farmworkeris a natural person who is employed on a recurrent, periodic or intermittent basis by an agricultural enterprise or farm, whether as a permanent or a non-permanent laborer, such as "dumaan", "sacada" and the like.Other farmworkeris a farmworker who is neither a regular nor a seasonal farmworker. Example is a farmworker who does several farm activities but is not paid for his/her labor.Technical farmworkeris a natural person employed by an agricultural enterprise or farm, who is highly educated and trained and performs functions in scientific, engineering, medical, teaching and other fields, but who is not vested with managerial or supervisory functions (e.g., chemists, agronomists, veterinarians, soil analysts).Managerial or Supervisory farmworkeris a natural person who is employed by an agricultural enterprise or farm vested with powers or prerogatives: (1) to lay down and execute management policies; (2) to hire, transfer, suspend, layoff, recall, discharge, assign or discipline employees; and/or (3) to effectively recommend such managerial actions.Who among these farmworkers can qualify as beneficiaries?They are those found to be directly working on the land, whether as regular, seasonal or other farmworkers at the time the field implementors conduct actual investigation and documentation. However, other workers (such as technical farmworkers) who are directly employed by the agri-business enterprise or corporation, except those holding managerial or supervisory positions may be considered as beneficiaries provided they meet the basic qualifications in Section 22,RA 6657.Even a farmworkers who has ceased to work as a result of pending agrarian or labor dispute but is willing to be an awardee of the agricultural land may be considered a beneficiary provided he/she has filed an appeal for reinstatement and has not yet obtained a substantially equivalent and regular farm employment. (AO-02, Series of 1993).What if a farmworker who has already been identified as qualified beneficiary gets promoted to managerial or supervisory position prior to land transfer?The farmworker may still qualify as awardee of the land provided he/she gives up the managerial or supervisory position. (AO-02, Series of 1993)What is meant by an agrarian or labor dispute?It refers to any controversy relating to tenurial arrangements, whether leasehold, tenancy, stewardship, or otherwise, over land devoted to agriculture, including disputes concerning farmworkers, associations or representation of persons in negotiation, fixing, maintaining, changing or seeking to arrange terms and conditions of such tenurial arrangements.It also includes controversy relating to compensation of lands acquired underRA 6657and other terms and conditions of transfer of ownership from landowners to farmworkers, tenants and other ARBs, whether the disputants stand in proximate relation of farm operator and beneficiary, landowner and tenant, or lessor and lessee.Can farmworkers who are husband and wife each receive three hectares?Yes, they may be entitled to three hectares each provided that their vested rights to the land have been duly established, in which case, they shall be issued separate CLOAs. (AO-02, Series of 1993)6.4SCREENING OF BENEFICIARIESIs it the landowner who selects the beneficiaries of his/her landholding?No. The landowner does not have the right to select who the beneficiaries should be. Except in the case of Voluntary Land Transfer or Direct Payment Scheme, land acquisition and distribution involves two separate transactions.First, the government buys the land from the landowner and then sells it to the farmer-beneficiaries.It is not the landowner, therefore, who is selling the landholding to the farmer-beneficiaries.It is the Municipal Agrarian Reform Officer (or the Agrarian Reform Program Technologist), together with the BARC who screens the beneficiaries.Even in the case of VLT/DPS, the landowner cannot just select a beneficiary. The beneficiary must qualify and it is still the MARO and the BARC who will do the screening.What is the recourse of farmers who claim they have a priority over those who have been identified by the MARO as the beneficiaries of the land?The farmers can file a protest with the MARO or the PARO who is currently processing the claim folder. Once a written protest is filed, the MARO or PARO shall comment on the said protest and submit the same to the Regional Director who shall rule on the protest. If the parties disagree with the RD's decision, they can file a written motion for reconsideration. If the motion is denied, the farmers can file an appeal to the DAR Secretary. (AO-09, Series of 1994)What can be done in case the tenants or tillers refuse to be interviewed and identified as beneficiaries?The MARO and the BARC should advise the potential ARBs about the consequences of their refusal. If they still refuse, the MARO and BARC should execute a certification to this effect and post it in conspicuous places for 30 days. Thereafter, new ARBs may be instituted. The MARO should, however, exercise great care under this situation. Refusal to be identified as beneficiaries can be due to several reasons, such as lack of assurance of support services which used to be provided by the landowner, fear of the landowner especially if the farmers are unorganized. That is why, MAROs should not overlook the importance of social preparation activities prior to land distribution.What can be done in case the occupants of an idle and abandoned agricultural land are found to have prematurely entered the landholding?Premature entry is strongly discouraged. Should it happen, however, the first consideration should be whether the occupants are the qualified beneficiaries of the land, or some other persons have superior rights to receive the land. In the latter case, the occupants should be ejected from the land and disqualified to be beneficiaries thereof.The second consideration is whether or not the landowner consents or has no objections to the occupancy and under what terms and conditions. The landowner and the occupants may agree on a lease arrangement in the meantime that acquisition of the land under CARP has not been completed.On the other hand, what can be done if no one is willing to be a beneficiary of the land?The DAR cannot yet acquire the agricultural land if it has no takers. The DAR must distribute all lands it acquires and is not in the business of warehousing land. What can be done is note such lands with no takers and offer it to those who may later on be interested or those who could not be accommodated in the distribution of other areas.What can be done if FBs have been erroneously identified but still their names have been entered and registered in the CLOAs?If the CLOA is already registered with the ROD, then an appropriate exclusion proceeding could be filed with the DARAB. (AO-02, Series of 1994)CHAPTER 7LANDOWNERS' RETENTION AND AWARD TO CHILDREN7.1RETENTION LIMITWhat is the retention right of landowners under the CARP?No less than the Constitution grants landowners the right to retain a portion of their lands covered by agrarian reform. Under the CARP, this retention right is limited to a maximum of five hectares per landowner. The only exceptions are as follows:a.Landowners whose lands have been covered byPD 27are allowed to keep the area they originally retained thereunder. Thus, if a landowner retained seven hectares under OLT, he/she is allowed under CARP to keep the said area.b.Original homestead grantees or their direct compulsory heirs who still own the original homestead as of 15 June 1988 are allowed to retain the same areas as long asthey continue to cultivatethe same homestead. Thus, a landowner may, for example, continue to keep his/her 12-hectare homestead.7.2LAND OWNERSHIP CEILINGWhat is the land ownership ceiling?The land ownership ceiling is likewise five hectares. A person who does not own agricultural land may not buy more than five hectares. A person who already owns two hectares of agricultural land may buy only up to three hectares more. This is in line with the State's objective of controlling and democratizing the ownership of land as a natural resource.7.3QUALIFICATIONS FOR THE EXERCISE OF THE RIGHT OF RETENTIONWho may apply for retention?All owners of private agricultural lands with a total area of more than five hectares, except those who have already been granted full retention (7 hectares) underPD 27.May a corporation also retain five hectares?Yes. The law grants both natural andjuridicalpersons the right of retention. Note that juridical persons include corporations, partnerships, cooperatives, or other bodies with separate legal personality.Note also that a corporation is a person separate and distinct from its stockholders and incorporators. Thus, a corporation may retainonly five hectaresand not five hectares for each incorporator.Are co-owners allowed to retain five hectares only?Persons owning an agricultural land under a co-ownership may retain five hectares each. This is because the co-owners remain as separate persons each entitled to retain five hectares.Thus, in the earlier case of a 30-hectare property owned by a couple who died before 15 June 1988, the six children were the co-owners of the land upon the effectivity ofRA 6657. Even if the title has not been transferred to their names, the six children are entitled to retain the 30 hectares at five hectares each.A married couple claims that as husband/wife they are entitled to five hectares each. Should the claim be granted?It depends.The criterion is the property relations between the husband and wife. If the property relations are governed by the system of complete separation of property as evidenced by a valid ante nuptial marriage settlement then the spouses are separate landowners and may, therefore, retain five hectares each from their respective properties.The spouses should submit evidence that they are entitled to retain more than five hectares. On the part of the DAR, it is important to note the date of the marriage. If the marriage was solemnized before 03 August 1988, then it is governed by the Civil Code. In the absence of an agreement for the separation of property, spouses who own only conjugal properties may retain a total of not more than five hectares from such properties. However, if either or both of them are landowners in their own respective rights (whether capital or paraphernal), they may retain not more than five hectares each from their respective landholdings.On the other hand, if the marriage was contracted on or after 03 August 1988, or under theNew Family Code, a husband owning capital property and/or a wife owning paraphernal property may retain five hectares each, if they executed a judicial separation of properties prior to the marriage. In the absence of such contract/agreement, all properties, whether capital, paraphernal, and conjugal shall be considered to be held in absolute community, i.e., the ownership relationship is one. Therefore, only a total of five hectares may be retained. (AO-11, Series of 1990)In no case, however, shall the total retention of the couple exceed ten hectares.7.4AWARD TO LANDOWNERS' CHILDRENIs the award to children part of the landowner's retention?No. The landowner is entitled to retain only five hectares. Any award to the qualified children is a result of the children being qualified beneficiaries of the program.

Is the award to children automatic?No. The law only grants the children apreferentialright to be awarded the land of their parents. They must still qualify as beneficiaries.What qualifications must the child of a landowner meet in order to qualify for a three-hectare award?To qualify, the child of a landowner must be:a.At least fifteen years old as of 15 June 1988, the effectivity ofRA 6657; andb.Actually tilling the land or directly managing the farm from 15 June 1988 up to the time of land acquisition.What is the meaning of the phrase "directly managing the farm"?"Directly managing" refers to the cultivation of the land through personal supervision under the system of labor administration. (DAR Memo Circular No. 04-1994) It should be interpreted along the lines of farm management as an actual major activity being performed by the landowner's child from which he or she derives income. Farm management should likewise be the child's primary occupation.

If the land is tenanted, can a landowner's child qualify for an award on the basis of a claim that he is directly managing the farm?As of 15 June 1988, tenants on the land should have become lessees. As lessees, they have the obligation to pay the lease rental but they have the right to directly manage the land. The child cannot, therefore, claim that he is managing the land. Hence, he cannot qualify for an award.What if the child meets the qualifications above but already owns ten hectares?Must he or she still be awarded three hectares?As earlier said, the child is to be awarded land not because he or she is a child of the landowner but because he or she is a qualified beneficiary. (However, thepreferencecomes from his or her being a child of the landowner.) Therefore, in addition to the qualifications above, the child must meet all other requirements to be a beneficiary. Not being landless, he or she does not qualify for an award.If a landowner's child qualifies as preferred beneficiary, will Land Bank pay the landowner for the area to be awarded to the child? In turn, will the child amortize the property?No, the rules on landowner's compensation and amortization by beneficiaries will not apply, except if the child awardee is a tenant in his/her own right. In which case, the Land Bank will finance the acquisition. However, tenancy between the landowner and the child must have already been established prior to 15 June 1988. (Memo Circular No. 04, Series of 1994)7.5SELECTION OF RETAINED AREAWhat are the criteria in the selection of the retained area?The area chosen for retention should be compact and contiguous. It should also be least prejudicial to the entire landholding and the majority of the farmers thereon. (Sec. 6,RA 6657andAO 11, Series of 1990)Can a landowner who owns properties in different locations choose separate areas totaling five hectares from among the said properties?No. The law provides that the area to be retained should be compact and contiguous.7.6PROCEDURES FOR THE EXERCISE OF THE RIGHT OF RETENTION AND AWARD TO QUALIFIED CHILDRENWhere should the landowner file the application for retention and award to qualified children?The landowner should file the application using DAR's Retention Form No. 1 in any DAR office, whether at the Central, Regional, Provincial or Municipal Office. If filed in an office other than the MARO where the landholding is located, the receiving office should forward the application to the MARO concerned.What are the requirements in applying for retention or award to children?The landowner should execute an affidavit as to the total area of his/her landholding. If applying for award to qualified children, the landowner should submit a list of his/her children who were at least fifteen (15) years old as of 15 June 1988 and who have been actually cultivating or directly managing the farm.What happens after the MARO receives the application for retention or award?The MARO, with the assistance of the BARC shall conduct a field verification and investigation to:1.determine total landholding in relation to the retention and award applied for;2.in the case of homestead, to determine whether the original homestead grantee or the direct compulsory heirs still own and actually cultivate the homestead;3.determine qualifications of the applicants and their children applying for retention and/or award; and4.identify affected tenants and determine whether they opt to become lessees in the retained area or to become land transfer beneficiaries in another landholding.The MARO then prepares the Retention Folder containing the documentation of the field investigation and the findings and recommendations. The folder is then submitted to the PARO for review.Who approves the application?The Regional Director approves or disapproves the application after reviewing and evaluating the report and recommendations submitted by the Provincial Agrarian Reform Officer (PARO).What happens after the Regional Director has approved the application for retention?1.If the application for retention is approved, the Regional Director shall issue Certificate of Retention (Retention Form No. 3) and forward this, together with the retention folder to the PARO.2.The PARO, in coordination with the Land Management Bureau of the DENR, shall segregate the appropriate retained area.3.The DENR shall furnish the DAR Regional Office four copies of the approved segr