Comprehensive Agrarian Reform Law of 1988

SECTION 1. TITLE. The Act shall be known

as the COMPREHENSIVE AGRARIAN REFORM
LAW OF 1988.

Approved on June 10, 1988.

Effectivity: June 15, 1988.
Its operation covers all public and
private agricultural lands, regardless
of
tenurial
arrangement
and
commodity produced, including other
lands of the public domain suitable for
agriculture.

SECTION
2.
DECLARATION
PRINCIPLES AND POLICIES.

OF

PURPOSES:
o Promote social justice and
industrialization
o Provide the mechanism for its
implementation
o Other purposes
PRINCIPLES AND POLICIES
(WEJASRE-ECO-SUB-SO-IEP-CA)
o Welfare of landless farmers
o Equitable
distribution
and
ownership of lands
o Just distribution of agricultural
lands
o Appropriate
support
in
technology and research
o Stewardship
whenever
applicable
o Resettlement
of
landless
farmers
o ECOnomic-size family farm
o SUBsistence fishermens rights
o Social responsibility principle
o IEPIndustrializatiion,
Employment and Privatization
of public sector enterprises
o Capital-extensive
farms
development
CONSTITUTIONAL BASIS OF CARL
(1987 CONST)
o SEC4, ART.XII
State
shall
undertake
agrarian
reform
program founded on the
rights of the farmers and
regular farmworkers, who
are landless, to own
directly or collectively the
lands they till or, in case
of other farmworkers, to
receive a just share of the
fruits thereof.
State shall encourage
and undertake the just

JD-C; NEW ERA UNIVERSITY-COLLEGE OF LAW

distribution
of
all
agricultural
lands,
subject to such priorities
and reasonable retention
limits as the Congress
may prescribe xxx
In determining retention
limits, the State shall
respect the rights of
small landowners.
The State shall provide
incentives for voluntary
land-sharing.
SEC5, ARTXII
The
State
shall
recognize the right of
farmers, farmworkers,
and landowners, as well
as
cooperatives,
and
other
independent
farmers organizations to
participate
in
the
planning,
organization,
and management of the
program
The State shall support
agriculture
through
appropriate
technology
and
research, and adequate
financial,
production,
marketing,
and
other
support services.
SEC6, ARTXII
The State shall apply
the
principles
of
agrarian reform, or
stewardship, whenever
applicable xxx
The State may resettle
landless farmers and
farmworkers in its own
agricultural estates which
shall be distributed to
tem
in
the
manner
provided by law.
SEC7, ARTXII
The State shall protect
the
rights
of
subsistence fishermen
xxx
SEC8, ARTXII
The State shall provide
incentives
to
landowners to invest the
proceeds of the agrarian
reform
program
to
promote industrialization,
Page 1

Comprehensive Agrarian Reform Law of 1988

employment
and
privatization of public
sector enterprises. xxx
SECTION 3. DEFINITIONS.

AGRARIAN REFORM 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 stocks, which
will allow beneficiaries to receive a
just share of the fruits of the lands
they work.
o DISTINCTION
BETWEEN
LAND
REFORM
AND
AGRARIAN REFORM
LAND REFORM a
program which seeks to
change
landlord-tenant
relationship with the end
in view of transferring the
ownership and control of
the agricultural land to
the actual tiller.
AGRARIAN REFORM
broader than land reform.
It is a land reform,
coupled with a package
of support services, price
contro;, and government
assistance on matters
related to legal aid,
consultation, counseling,
building of projecys which
will contribute to the
development and success
of agrarian reform and
such
other
support
services
which
the
government may give
from time to time, if
necessary.
AGRICULTUURE,
AGRICULTURAL
ENETRPRISE, OR AGRICULTURAL
ACTIVITY the cultivation of the soil,
planting of crops, growing of fruits,
trees, including the harvesting of such
farm products, an other farm activities

JD-C; NEW ERA UNIVERSITY-COLLEGE OF LAW

and practices performed by a farmer

in conjunction with such farming
operations done by persons whether
natural or juridical.
(CUL-PLA-GROW-HARVEST-OTHER)
CULtivation of the soil
PLAnting of crops
GROWing of fruits and trees
HARVESTing of farm products
OTHER farm activities and practices.
AGRICULTURAL LAND land devoted
to agricultural activity as defined in
this actand not classified as mineral,
forest, commercial, or residential land
(MINFORECOIN).
o PRIMARY
CLASSIFICATION
OF LAND
(AGFOTIMINA)
AGricultural lang
FOrest land
TImber land
MIneral land
NAtional parks
o POWER TO RECLASSIFY
The President, upon the
recommendation of the
DENR.
o SECONDARY CLASSIFICATION
OF
AGRICULTURAL
LAND
(RECOIN)
REsidential land
COmmercial land
INdustrial land
o POWER
TO
RECLASIFY
AGRICULTURAL LANDS
The local government cities and municipalities.
AGRARIAN
DISPUTE

Any
controversy
relating
to
tenurial
arrangements,
whether
leasehold,
tenancy, stewardship or otherwise,
over lands devoted to agriculture,
including
disputes
concerning
farmworkers
associations
or
representation
of
persons
in
negotiating,
fixing,
maintaining,
changing, or seeking to arrange terms
or
conditions
of
such
tenurial
arrangements.
It includes any controversy
relating to compensation of lands
acquired under this Act and other
terms and conditions of transfer of
ownership
from
landowners
to
farmworkers,
tenants
and
other
agrarian reform beneficiaries, whether
the disputants stand in the proximate
relation
of
farm
operator
and
Page 2

Comprehensive Agrarian Reform Law of 1988

beneficiary, landowner and tenant, or

lessor and lessee.
IDLE OR ABANDONED LAND Any
agricultural land not cultivated, tilled
or developed to produce any crop nor
devoted to any specific economic
purpose continuously for a period of 3
years immediately prior to the receipt
of notice of acquisition by the
government as provided under this
Act, but does not include land that has
become permanently or regularly
devoted to non-agricultural purposes.
It does not include lands which has
become unproductive by reason of
force mejure or any fortuitous event,
provided that prior to such event, such
land
was
previously
used
for
agricultural
or
other
economic
purpose.
FARMER* (as amended by RA9700)
a natural person whose primary
livelihood is cultivation of land or the
production
of
agricultural
crops,
livestock and/or fisheries either by
himself/herself, or primarily with the
assistance of his/her immediate farm
household, whether the land is owned
by him/her, or by another person
under a leasehold or share tenancy
agreement or arrangement with the
owner thereof. (i-memorize daw, and
distinguish from farmworkers, regular
farmworkers, seasonal farmworkers)
FARMWORKERS* a natural person
who tenders service for value as an
employee or laborer in an agrivultural
enterprise of farm regardless of
whether his compensation is paid on
daily, weekly, monthly or pakyaw
basis. The term includes individual
whose work has ceased as a
consequence of, or in connection with,
a pending agrarian dispute, and who
has not obtained a substantially
equivalent
and
regular
farm
employment.
REGULAR
FARMWORKER*
a
natural persono who is employed on a
permanent basis by an agricultural
enterprise or farm.
SEASONAL FARMWORKER* - a
natural person who is employed on a
recurrent, periodic or intermittent
basis by an agricultural enterprise or
farm, whether as a permanent or non-

JD-C; NEW ERA UNIVERSITY-COLLEGE OF LAW

permanent laborer, such as dumaan,

sacada, and the like.
OTHER
FARMWORKER

a
farmworker who does not fall under
paragraphs g,h,i (farmworker, regular
farmworker, or seasonal farmworker).
COOPERATIVES

organizations
composed
primarily
of
small
agricultural
producers,
farmers,
farmworkers, or other agrarian reform
beneficiaries who voluntarily organize
themselves for the purpose of pooling
land, human, technological, financial,
or other economic resources, and
operated on the principle of one
member of a cooperative, with the
same rights and duties as a natural
person.
OTHER
DEFINITIONS
AS
ENUNCIATED IN SCs DECISIONS
o AGRICULTURAL LESSEE The
mere fact that the land is
agricultural does not ipso facto
make one an agricultural lessee.
The law provides conditions or
requisites
before
one
can
qualify as such and the land
being agricultural is only one of
them. Among others, the law
requires the tenant and his
immediate family to work the
land. (De Jesus vs. IAC, GR No
72282, July 24, 1989)
o AGRICULTURAL LESSEE vs
CIVIL LAW LESSEE An
AGRICULTURAL
LESSEE
whose security of tenure is
guaranteed by the tenancy law
should be distinguished from a
CIVIL LAW LESSEE whose right
to work on the land expires in
accordance with the terms and
conditions
of
the
lease
agreements. (De Jesus vs. IAC,
GR No 72282, July 24, 1989)
o LEASEHOLD
TENANCY
vs
CIVIL LAW TENANCY
LEASEHOLD
TENANCY
Agrarian Land
Personal Cultivation
of Land
Devoted
to
agriculture
Governed by special
laws

CIVIL
LAW
TENANCY
Rural or urban
No
need
to
personally cultivate
the land
Any
other
lawful
pursuit
Governed by the civil
code

Page 3

Comprehensive Agrarian Reform Law of 1988

IMMEDIATE FARM HOUSEHOLD

membership of the family of the
lessee or lessor and other persons
who are dependent upon him for
support and who usually help him
in his activities. (De Jesus vs. IAC,
GR No 72282, July 24, 1989)

SECTION 4. SCOPE.

LANDS COVERED BY CARL OF 1988

o All
public
and
private
agricultural lands
o Other lands of public domain
suitable for agriculture
SPECIFIC LANDS COVERED BY
CARP
o Alienable and disposable lands
of public domain suitable for
agriculture
o All lands of public domain in
excess of the specific limits as
determined by Congress
o All
lands
owned
by
the
Government devoted to or
suitable for agriculture
o All private lands devoted to or
suitable
for
agriculture
regardless of the agricultural
products raised or that can be
raised thereof

SECTION
5.
IMPLEMENTATION.

SCHEDULE

OF

Distribution of all lands covered by

this Act shall be implemented
immediately and completed within 10
years from effectivity thereof (or
from June 15, 1988).

SECTION 6. RETENTION LIMITS.

WHAT IS THE RETENTION LIMIT?

o Shall not exceed 5 hectares
but 3 hectares may be
awarded to each child of land
owner subject to the following
qualifications:
He is at least 15 years
old
He is actually tilling
the land or directly
managing the farm
IF THE LANDS OF A LANDOWNER
HAVE ALREADY BEEN COVERED BY

JD-C; NEW ERA UNIVERSITY-COLLEGE OF LAW

PD27M WHAT ARE HIS RIGHTS

UNDER THE CARL?
o He shall be allowed to keep the
area originally retained by him
under PD27, provided that the
original homestead grantees or
direct compulsory heirs who still
own the original homestead at
the time of the approval or
CARL shall retain the same
areas as long as they continue
to cultivate said homestead.
o He has the right to choose the
area to be retained which shall
be compact or contagious.
IF THE AREA CHOSEN BY THE
LANDOWNER IS TENANTED, WHAT
IS THE OPTION OF THE TENANT?
o He can remain in the land, in
which
case, he
shall
be
considered a leaseholder and
shall lose his right as a
beneficiary under CARL
o He can choose to be a
beneficiary in the same or
another agricultural land with a
similar or comparable features.
IF THE TENANT CHOOSES TO BE A
BENEFICIARY
IN
ANOTHER
AGRICULTURAL LAND, WHAT IS
THE CONSEQUENCE?
o He shall lose his right as a
leaseholder to the land retained
by the landowner
IF THE TENANT CHOOSES TO BE A
BENEFICIARY, WHAT IS THE TIME
FRAME GIVEN TO HIM BY CARL
WITHIN WHICH TO EXERCISE SUCH
OPTION?
o 1 year from the time the
landowner manifests his choice
of the area to be retained by
him.

SECTION 7. PRIORITIES.

WHAT ARE THE PRIORITIES IN THE

ACQUISITION AND DISTRIBUTION
OF AGRICULTURAL LANDS?
o PHASE 1
Rice and corn lands
under PD 27
All idle or abandoned
lands
All
private
lands
voluntarily offered for
redistribution

Page 4

Comprehensive Agrarian Reform Law of 1988

All lands foreclosed by
government
financial
institutins
PCGG acquired lands
All
government-owned
agricultural lands for
immediate
acquisition
and distribution to be
completed within 4 years
from the effectivity of
CARL
o PHASE 2
All
alienable
and
disposable
public
agricultural lands
All
arab;e
public
agricultural lands under
agro-forest, pasture, and
agricultural
leases
already cultivated and
planted to crops
All
public
agricultural
lands to be opened for
development
and
resettlement
All private agricultural
lands in excess of 50
hectares insofar as the
excess is concerned for
immediate
implementation upon the
effectivity of the CARL,
also to be completed
within the period of 4
years.
o PHASE 3
All
other
private
agricultural
lands
as
follows:
Above 24 hectares
upto 50 hectares
From the retention
limit
upto
24
heactares
Paragraph 5:
o SCHEDULE OF ACQUISITION
AND REDISTRIBUTION
Shall be in accordance
with the above order of
priority
Shall be provided in the
implementing rules to be
prepared
by
that
Presidential
Agrarian
Council (PARC)
Taking in to consideration
the following:

JD-C; NEW ERA UNIVERSITY-COLLEGE OF LAW

Paragraph 6:
o Upon the recommendation of
the Provincial Agrarian Reform
Coordinating
Committee
(PARCOM), PARC may declare
certain provinces or region as
priority land reform areas, in
which
the
acquisition
and
distribution
of
private
agricultural lands therein may
be implemented ahead of the
above schedules.
Priority must be given to
lands that are tenanted.
Paragraph 7:
o The
PARC
shall
establish
guidelines to implement the
abovementioned priorities and
distribution scheme, including
the determination of who are
the qualified beneficiaries
PROVISO: an owner-tiller
may be a beneficiary of
the land he does not own
but is actually cultivating
to the extent of the
difference between the
area of the land he owns
and the award ceiling of
three (3) hectares.

SECTION
8.
CORPORATIONS.

The
need
to
distribute land to
the tillers at the
earliest practicable
time
The
need
to
enhance
agricultural
productivity
The availability of
funds
and
resources
to
implement
and
support
the
program.

MULTINATIONAL

HOW SHALL THE SAID LANDS BE

DISTRIBUTED
AFTER
THE
EXPIRATION
OF
THE
CORRESPONDING
LEASES
OR
AGREEMENTS?
a) Lands leased, held, or possess
by multinational corporations
shall be subject to immediate
compulsory
acquisition
and
Page 5

Comprehensive Agrarian Reform Law of 1988

distribution upon expiration of

the lease or other contracts in
effect as of August 29, 1987, or
upon their valid termination,
whichever comes sooner, but
not later than 10 years after
effectivity
of
the
CARL.
(PARAGRAPH 3)
b) These lands shall be distributed
directly to individual workerbeneficiaries, or if dividing the
land
is
not
economically
feasible, a lease or growers
contract or any other legitimate
agreement may be entered into
by previous employer with a
cooperative
or
association
composed
of
workerbeneficiaries. Such agreements
must not in any way reduce the
status,
benefits,
or
rights
already enjoyed by the worker
beneficiaries at the time CARL
becomes effective. (Paragraph
4)
WHEN SHALL LANDS DEVOTED TO
AGRI-BUSINESS AND OPERATED BY
MULTINATIONALS
BE
DISTRIBUTED?
a) Immediately upon effectivity of
CARL to be completed within 3
years.
Paragraph 1:
a) The
following
shall
be
programmed for acquisition and
distribution immediately upon
the effectivity of this Act, with
the
implementation
to
be
completed within 3 years
All lands of the public
domain leased, held, or
possessed
by
multinational
corporations
ir
associations
Other lands owned by the
government-owned
or
controlled
corporations,
associations, institutions,
or entities, devoted to
existing and operational
agribusiness
or
agroindustrial
enterprises,
operated by multinational
corporations
and
associations.

ANCESTRAL LANDS Ancestral land

of each indigenous cultural community
shall include, but not limited to, lands
in the actual, continuous and open
possession and occupation of the
community and its members, provided
that the torrens system shall be
respected
WHAT IS THE PROTECTION GIVEN
BY CARL TO EACH INDIGENOUS
CULTURAL COMMUNITY?
o The rights of these communities
shall be protected to ensure
their economic, social, and
cultural well-being.
o In line with the principles of selfdetermination and autonomy,
the systems of land ownership,
land use, and the modes of
settling land disputes of all
these communities must be
recognized and respected

SECTION
10.
INCLUSIONS

EXEMPTIONS

WHAT ARE THE LANDS EXEMPTED

FROM THE COVERAGE OF CARP?
o Those actually, directly, and
exclusively used and necessary
for:
Parks
Wildlife
Forest reserves
Reforestation
Fish
sanctuaries
and
breeding grounds
Watersheds
and
mangroves
National defense
School
sites
and
campuses
including
school-operated
experimental
farm
stations
Seeds
and
seedling
research
and
pilot
production centers
Churchsites and convents
Mosque sites and Islamic
centers
Cemeteries
Penal farms worked by
inmates
Government research and
quarantine centers

SECTION 9. ANCESTRAL LANDS.

JD-C; NEW ERA UNIVERSITY-COLLEGE OF LAW

AND

Page 6

Comprehensive Agrarian Reform Law of 1988

o

All lands with 18% slope and

over EXCEPT those already
developed.
Private lands actually, directly
and exclusively used for prawn
farms and fishponds
PROVISO:
the
said
prawn
farms
and
fishponds have not been
distributed
and
Certificate
of
Land
Ownership Award (CLOA)
issued to agrarian reform
beneficiaries.
IN CASES WHERE THE
FISHPONDS OR PRAWN
FARMS
HAVE
BEEN
SUBJECTED
TO
THE
CARL, BY VOLUNTARY
OFFER TO SELL, OR
COMMERCIAL
FARMS
DEFERMENT
OR
NOTICES
OF
COMPULSARY
ACQUISITION: such may
be exempted from CARP
IF a simple and absolute
majority of the actual
workers
or
tenants
consent to the exemption
within one (1) year from
MARCH 12, 1995.
IN CASES WHERE THE
FISHPONDS OR PRAWN
FARMS
HAVE
NOT
BEEN SUBJECTED TO
CARL: the consent of the
farm workers shall no
longer
be
necessary.
However, the provision of
SEC.32-A of the CARL on
incentives shall apply.

SECTION 12. DETERMINATION OF LEASE

RENTALS.

Private agricultural lands devoted to

agriculture, fruit farms, vegetable and
cut-flower farms, and cacao, coffee,
and rubber plantations shall be subject
to
government
acquisition
and
redistribution only after 10 years from
the effectivity of CARL. For new farms,
the 10-year period shall begin from
the 1st year of commercial production
and operation
During the 10-year period, the
government
shall
initiate
steps
necessary to acquire such lands, upon

JD-C; NEW ERA UNIVERSITY-COLLEGE OF LAW

To protect and improve the tenurial

and economic status of the farmers,
the DAR is mandated to determine and
fix immediately the lease rentals in
accordance with sec.34 of RA 3844.
DAR shall immediately and periodically
review and adjust rental structures for
different crops, including rice and corn
of different regions in order to improve
progressively the conditions of the
farmer, tenant, or lessee.

SECTION
PLAN.

SECTION 11. COMMERCIAL FFARMING.

payment of just compensation for the

land and the improvements thereon,
preferably in favor of the organized
cooperatives or associations, which
shall manage the said lands for the
worker-beneficiaries.
If the DAR determines that the
purpose for which the deferment is
granted no longer exists, the areas
shall automatically be redistributed.

13.

SHARING

ENTERPRISES OPERATING UNDER

A PRODUCTION VENTURE, LEASE
MANAGEMENT
CONTRACT
OR
OTHER SIMILAR ARRANGEMENT
AND ANY FARM COVERED BY
SECTIONS 8 AND 4 OF CARL
o They are mandated to execute
within 90 days from effectivity
of CARL, a production plan,
under guidelines presented by
the appropriate government
agency.
BENEFITS ALREADY GRANTED TO
EMPLOYEE BENEFICIARIES SHALL
NOT BE DIMINISHED
o Benefits such as terms and
conditions
favorable
to
employees
and
their
beneficiaries which are already
existing and have already been
granted

SECTION
14.
LANDOWNERS.

PRODUCTION

REGISTRATION

OF

WITHIN 180DAYS from the effectivity

of CARL, All natural and juridical
persons are required to register their
landhohldings witth the assesors
Page 7

Comprehensive Agrarian Reform Law of 1988

office in the municipality where their
properties are located.
SECTION
15.
BENEFICIARIES.

REGISTRATION

OF

The potential beneficiaries, with the

assistance of the BARC and the DAR
shall provide the following data:
o Names and members of the
immediate farm household
o Owners or administrators pf the
lands they work on and the
length of tenurial relationship
o Location and area of the land
they work
o Crops planted
o Their share in the harvest or
amount of rental paid or wages
received
The registry or list of all potential
CARP beneficiaries in the barangay
shall be posted in the barangay hall,
school or other public buildings in the
barangay where it shall be open to
inspection by the public at all
reasonable hours.

SECTION
16.
PROCEDURE
ACQUISITION OF PRIVATE LANDS

landowner, the DAR shall take

immediate possession of the lands and
shall request the proper Registry of
Deeds to issue a Tansfer of Certificate
Title in the name of the Republic of the
Philippines, upon the deposit of the
compensation in cash or LBP bonds
6. If there is an agreement with a
decision, any issue as to the matter of
just compensation will be decided by
the appropriate court
NOTICES
REQUIRED
IN
IMPLEMENTING CARP
o Notice of coverage and
letter of invitation to a
preliminary conference sent
to
the
landowner,
the
representative of the BARC,
LBP, farmer beneficiaries and
other interested parties
o NOTICE OF ACQUISITION sent
to the landowner
SECTION 17. DETERMINATION OF JUST
COMPENSATION

AND

1. Before proceeding with the procedures

mentioned in section 16, it is
necessary that the lands covered by
CARP is already identified
2. After the identification, the DAR shall
send its notice to acquire the lands to
the owners thereof
3. If DARs offer is accepted by the
landowner, the LBP shall pay the
landowner the purchase price of the
land within 30days after he executes
and delivers a deed of transfer in favor
of the Government and surrenders the
Certificate
of
Title
and
other
muniments of title
4. If there is rejection or failure to reply,
the DAR shall conduct summary
administrative
proceeding
to
determine the compensation for the
land by requiring the landowner, the
LBP and othe interested parties to
submit evidence as to the just
compensation for the land, within
15days from the receipt of the notice.
Thereafter, the matter is deemed
submitted for decision
5. In case of receipt of payment or in the
case of rejection or non-reply from the
JD-C; NEW ERA UNIVERSITY-COLLEGE OF LAW

WHAT IS JUST COMPENSATION?

o Just and complete equivalent of
the loss which the owner of the
thing expropriated has to suffer
by reason of the expropriation
o The full and fair equivalent of
the property taken from its
owner by the expropriator.
FACTORS
CONSIDERED
IN
DETERMINING
JUST
COMPENSATION
o Cost of acquisition of land
o Current value of the like
properties
o Nature of the land
o Actual use and income
o Sworn
valuation
by
the
landowner
o Tax declarations
o Assessments made by the
government assessors
o Social and economic benefits
contributed by the farmers and
farmworkers
and
by
the
government
o Non payment of taxes or loans
secured from any government
financing institution on the said
land
WHO MAKES THE PRELIMINARY
DETERMINATION
OF
JUST
COMPENSATION CASES?
Page 8

Comprehensive Agrarian Reform Law of 1988

PROVINCIA
L
AGRARIAN
REFORM
ADJUDICAT
OR
If
the
compensatio
n
offered
does
not
exceed
2million
pesos

REGIONAL
AGRARIAN
REFORM
ADJUDICAT
OR
If
the
government
s
offer
is
more
than
2million
pesos
but
does
not
exceed
5million
pesos

DEPARTMEN
T
OF
AGRARIAN
REFORM
ADJUDICATI
ON BOARD
If the offer is
more
than
5million pesos

IN CASH
For lands above 50
hectares insofar as
the excess hectare
is concerned 25%
cash, the balance to
be
paid
in
government financial
instruments
negotiable
at
anytime

DARAB TAKES COGNIZANCE OF

VALUATION
CASES
INVOLVING
PD27 LANDS
FINAL DETERMINATION OF JUST
COMPENSATION IS VESTED IN THE
COURTS
WHAT IS THE DELINEATION OF
AUTHORITYBETWEEN DARAB AND
THE
rtc
AS
REGARDS
TO
VALUATION CASES?
DARAB
Determine the initial
valuation of lands.
Valuation
is
only
preliminary,
unless
accepted
by
all
parties concerned.
DAR has PRIMARY
JURISDICTION as an
administrative
agency to determine
in
preliminary
manner
the
reasonable
compensation to be
paid for the lands
taken
under
the
CARP,
but
such
determination
is
subject to challenge
in courts

RTC
Has the right to
review with finality
the
said
determination in the
exercise of what is
admittedly a judicial
function.
Determination of just
compensation
by
DAR is by no means
final and conclusive
upon the landowner
or any other party.
Basis:
Sec16(f)
Any
party
who
disagrees with the
decision may bring
the matter to the
court
of
proper
jurisdiction for final
determination of just
compensation

SECTION 18. VALUATION MODE.

JD-C; NEW ERA UNIVERSITY-COLLEGE OF LAW

The LBP shall compensate the

landowner in such amounts as may be
agreed upon by the landowner and the
DAR and the LBP, xxx or as may be
finally determined by the court, as just
compensation for the land.
MODE OF COMPENSATION

IN KIND
Shares of stocks in
government-owned
or
controlled
corporations,
LBP
preferred
shares,
physical assets or
other
qualified
investments
in
accordance
with
guidelines set by the
PARC
For lands above 24 Tax credits which can
hectares and upto be used against any
50
hectares- tax liability
30%cash,
the
balance to be paid in
government financial
instruments
negotiable
at
anytime
For
lands
24
hectares
and
below-35% cash, the
balance to be paid in
government financial
instruments
negotiable
at
anytime
ATTRACTIVE FEATURES OF LBP
BONDS
o Market
interest
rates
are
aligned with 91-day treasury bill
lrates
o Transferability and negotiability
Acquisition of land or
other real properties of
the government
Acquisition of shares of
stock
of
government
owned and controlled
corporations
Substitution for surety or
bail bonds
Security for loans with
any government financial
institution
Payment for various taxes
and fees to government
Payment for tuition fees
Page 9

Comprehensive Agrarian Reform Law of 1988

Payment for fees of the

immediate family of the
original bondholder
Such other uses

SECTION
19.
INCENTIVES
VOLUNTARY OFFERS FOR SALES.

LANDOWNERS, other than banks and

other financial institutions, WHO
VOLUNTARILY OFFER THEIR LANDS
FOR SALE SHALL BE ENTITLED TO
AN
ADDITIONAL
5%
CASH
PAYMENT

SECTION
20.
TRANSFER.

FOR

VOLUNTARY

LAND

As compared to Section 19, Section 20

does not state a specific incentive to a
landowner who voluntarily transfer his
lands to qualified beneficiaries.
Section 20 merely states that the
terms and conditions, of such transfer
shall not be less than favorable to the
transferee
than
those
of
the
governments
standing
offer
to
purchase from the landowner and to
resell to the beneficiaries.

SECTION
21.
PAYMENT
OF
COMPENSATION
BY
BENEFICIARIES
UNDNER VOLUNTARY LAND TRANSFER

MODES OF PAYMENT BY A FARMER

BENEFICIARY TO THE LANDOWNER
o In cash
o In kind
o Other details of arrangement
must
be
registered
and
approved by the DAR.

SECTION 22. QUALIFIED BENEFICIARIES

BENEFICIARIES:
o Landless residents of the same
barangay, or if there is none, to
o Landless residents of the same
municipalilty,
following
the
order of priority:
Agricultural lessees and
share tenants
Regulr farmworkers
Seasonal farmworkers
Other farmworkers
Actual tillers or occupants
of public lands
Collective or cooperatives
of the above beneficiaries

JD-C; NEW ERA UNIVERSITY-COLLEGE OF LAW

Others directly working

on the land
o PROVISO: 2 PREFERENCES
Children of landowners
who are qualified shall be
given preference in the
distribution of the land of
their parents
Actual tenant-tillers in the
landholding shall not be
objected
or
removed
therefrom.
o BASIC QUALIFICATIONS OF
BENEFICIARIES
Willingness
Aptitude
Ability to cultivate and
make
the
lands
as
productive as possible.
o GROUNDS
FOR
DISQUALIFICATIONS
OF
BENEFICIARIES
Guilty
of
negligence,
misuse of the land
Beneficiaries under PD27
who have culpably sold,
disposed
of,
or
abandoned their land
KINDS OF AGRICULTURAL
TENANCY*

SHARE TENANCY
Exists
when
two
persons agree on a
joint undertaking for
agricultural
production
wherein
one party furnishes
the land and the
other his labor, with
either
or
both
contributing any one
or several of the
items of production,
the tenant cultivating
the land personally
with aid of labor
available
from
members
of
his
immediate
farm
household, and the
produce thereof to be
divided between the
landholder and the
tenant

LEASEHOLD
TENANCY
Exists when a person
who,
either
personally or with the
aid of labor available
from members of his
immediate
farm
household
undertakes
to
cultivate a piece of
agricultural
land
susceptible
of
cultivation
by
a
single
person
together
with
members
of
his
immediate
farm
household, belonging
to
or
legally
possessed
by
another
in
consideration of a
fixed
amount
in
money or in produce
or in both.
Page 10

Comprehensive Agrarian Reform Law of 1988

ELEMENTS
OF
AGRICULTURAL
TENANCY
o Parties
o Agricultural land
o Consent
o Agricultural
production
as
purpose
o Personal cultivation
o Compensation

SECTION 23. DISTRIBUTION LIMIT

No qualified beneficiary may

more than 3 hectares of land

SECTION 25. AWARD

BENEFICIARIES

own

SECTION 24. AWARD TO BENEFICIARIES

provided for in the Act, and shall be

recorded in the Register of Deeds
concerned and annotated on the
Certificate of Title.

The rights and responsibilities of the

beneficiary shall commence from the
time the DAR makes an award of the
land to him, which award shall be
completed within 180days from the
time DAR takes actual possession of
the land.
Ownership by the beneficiary shall be
evidenced by a Certificate of Land
Ownership Award (CLOA), which shall
contain the restrictions and conditions

JD-C; NEW ERA UNIVERSITY-COLLEGE OF LAW

CEILINGS

FOR

Beneficiaries shall not be awarded an

agricultural land exceeding 3 hectares.
Landless beneficiary one who
owns less than 3 hectares of land
OPTION
FOR
COLLECTIVE
OWNERSHIP organization into
one group through
o Co-ownership
o Farmers cooperative
RESTRICTION: The total
area to be awarded shall
not exceed the total
number of co-owners or
members
of
the
cooperative or collective
organization multiplied by
the award limit EXCEPT in
meritorious
cases
as
determined by the PARC.

Page 11