Chapter 11
Chapter 11
AGRARIAN REFORM
In 1955, the Land Reform Act (RA 1400) was passed, setting in motion the
expropriation of all tenanted areas.
On August 8, 1963, the Agricultural Land Reform Code (RA 3844) was
enacted, abolishing share tenancy. RA 3844 created the Land Bank of the Philippines
(LBP) to provide support in all phases of agrarian reform. As its major thrust, the RA
aimed to create a system of owner cultivatorship in rice and corn, supposedly to be
accomplished by expropriating lands in excess of 75 hectares for their eventual
resale to tenants. The law, however, had this restricting feature: its operations were
confined mainly to areas in Central Luzon, and its implementing at any level of
intensity limited to the pilot project in Nueva Ecija.
Subsequently, Congress passed the Code of Agrarian reform (RA 6389)
declaring the entire country a land reform area, and providing for the automatic
conversion of tenancy to leasehold tenancy in all areas. From 75 hectares, the
retention limit was cut down into seven hectares.
Barely a month after declaring martial law in September 1972, then
President Ferdinand Marcos issued Presidential Decree No. 27 (PD 27) for the
“emancipation of the tiller from the bondage of the soil,” in October 21, 1972.
Based on this issuance, tenant-farmers, depending on the size of the landholding
worked on, can either purchase the land they tilled or shift from share to fixed-rent
leasehold tenancy. While touted as “revolutionary,” the scope of agrarian reform
program PD 27 enunciated covered only tenanted, privately-owned rice and corn
lands.
Then came the revolutionary government of then President Corazon C. Aquino
and the drafting and eventual ratification of the 1987 Constitution. Its provisions
foreshadowed the establishment of a legal framework for the formulation of an
expansive approach to land reform, affecting all agricultural lands and covering both
tenant-farmers and regular farmworkers.
So it was that proclamation No. 131, Series of 1987, was issued instituting a
Comprehensive Agrarian Reform Program (CARP) to cover all agricultural lands,
regardless of tenurial arrangement and commodity produced, as provided in the
Constitution.
On July 22, 1987, Executive Order No 229 (EO 229) was issued providing,
as its title indicates, the mechanisms of CARP implementation. It created the
Presidential Agrarian Reform Council (PARC) as the highest policy-making body that
formulates all policies, rules and regulations necessary for the implementation of
CARP.
On June 10, 1988, RA 6657 or the Comprehensive Agrarian Reform Law of
1988, also known as CARL or the CARP Law, took effect, ushering in a new process of
land classification, acquisition, and distribution.
On August 7, 2009, RA 9700 or also known as Comprehensive Agrarian
Reform Extended Reform Law (CARPER Law) was took effect an act of an act
strengthening the Comprehensive Agrarian Reform Program (CARP), extending the
acquisition and distribution of all agricultural lands, instituting necessary reforms,
amending for the purpose certain provisions of Republic Act No. 6657, otherwise
known as the comprehensive agrarian reform law of 1988.
Aquino Administration
70
The constitution ratified by the Filipino people during the administration of
President Corazon C. Aquino provides under section 21 under Article II that “The
State shall promote comprehensive rural development and agrarian reform.”
On June 10, 1988, Former Pres. Aquino signed into law Republic Act No.
6657 known as Comprehensive Agrarian Reform Law (CARL) which became
effective on June 15,1988.
a. Executive Order No. 228, July 16, 1987.- Declared full ownership to
qualified farmer-beneficiaries covered by PD 27. It also determined the value
remaining unvalued rice and corn lands subject of PD 27 and provided for the
manner of payment by the FBs and mode of compensation to landowners.
b. Executive Order No. 229, July 22, 1987- Provided mechanism for the
implementation of the Comprehensive Agrarian Reform Program (CARP)
c. Proclamation No. 131, July 22, 1987- Instituted the CARP as a major
program of the government. It provided for a special fund known as Agrarian
Reform Fund (ARF), with an initial amount of 50 billion pesos to cover the
estimated cost of the program from 1987-1992.
d. Executive Order No. 129-A, July 26, 1987- Streamlined and expanded the
power and operations of DAR
e. Republic Act No. 6657, June 10, 1988 (CARL)- An act which became
effective June 15, 1988 and instituted a comprehensive agrarian reform
program to promote social justice and industrialization providing the
mechanism for its implementation and for other purposes.
f. Executive Order No. 405, June 14, 1990- Vested in the Land Bank of the
Philippines the responsibility to determine land valuation and compensation
for all lands covered by CARP.
g. Executive Order No. 407, June 14, 1990- Accelerated the acquisition and
distribution of agricultural lands, pasture lands, fishponds, agro-forestry lands
and other lands of the public domain suitable for agriculture.
When President Fidel V. Ramos took over in 1992, his administration came
face-to-face with publics who have lost confidence in the agrarian reform program.
a. Republic Act No. 7881, 1995- Amended certain provisions of RA 6657 and
exempted fishponds and prawns from the coverage of CARP.
b. Republic Act No. 7905, 1995- Strengthened the implementation of the
CARP.
c. Executive Order No. 363, 1997- Limits the type of lands that may be
converted by setting conditions under which specific categories of agricultural
land are either absolutely non-negotiable for conversion or highly restricted
for conversion.
d. Republic Act 8435, 1997 (Agriculture and Fisheries Modernization Act
AFMA)- Plugged the legal loopholes in land use conversion.
e. Republic Act 8532, 1998 (Agrarian Reform Fund Bill) – Provided an
additional of 50 billion pesos for CARP and extended its implementation for
another 10 years.
“Erap Para sa Mahirap” was the battle cry that endeared President Joseph
Estrada and made him very popular during the 1998 presidential election.
71
President Estrada initiated the enactment of the Executive Order No. 151,
September 1999 (Farmer’s Trust Fund) which allowed the voluntary
consolidation of small farm operation into medium and large scale integrated
enterprise that can access long-term capital. He also launched the “Magkabalikat
Para sa Kaunlarang Agraryo” or MAGKASAKA.
Land is a fundamental asset for the rural and urban poor. It provides a
foundation for economic activities and functioning of market institutions (for
example, credit) and nonmarket institutions (such as local government and social
networks). Secure property rights provide increased incentives, such as access to
cheaper credit, which encourage households and individuals to invest in land. For
most poor people, land is the primary means of generating a livelihood and it may
also be the main vehicle for investing, accumulating wealth, and then transferring
such wealth between generations. In rural areas, a significant amount of land
remains in the hands of a small number of people and is farmed as haciendas, with
large tracts that are still under sugarcane. Such inefficient and inequitable property
rights and land markets are a core problem of the land subsector in the Philippines.
They have, in turn, resulted in tenure insecurity and subsequent low investments in
land, leading to secondary effects such as land degradation and poor agricultural
production. Research has shown that secure property rights are an enabling factor in
improving the investment climate, natural resources management, urban land
management, and decentralization, as well as in promoting good governance.
The Government addresses issues of land equity, tenure security, property
rights, and land markets through two main elements of a broader strategic
framework—land administration and agrarian reform. These elements involve many
agencies, from the Department of Finance for valuation and tax issues, to the
72
Department of Agrarian Reform (DAR), for land issues in rural agricultural areas.
However, two agencies, the Department of Environment and Natural
Resources (DENR) and DAR are the key implementing agencies.
DENR is responsible for land administration, where the objectives are to
improve service delivery and reduce “red tape” and corruption in registration of land
transactions. . Improved service delivery, increased coverage of the land
administration system, and standardized and consistent property valuation system
are expected to increase land registration, which would in turn increase government
revenues from land-related taxes and fees, thereby leading to improvement and
sustainability of public services in general.
DAR is responsible for agrarian reform, in which the primary objective is to
reduce land inequality, primarily in rural areas. With an estimated 41.4 percent of the
population living in rural areas, and 64 percent of them involved in agriculture, the
agrarian reform program is meant not only to improve tenure security, but
constitutes a poverty reduction tool aimed at increasing farm revenues, and through
the investments that come from land ownership, contribute to sustainable land use.
The agrarian reform system was developed to improve access of the rural poor to
land as well as function as a poverty reduction program.
For a long period of time, the agrarian system of Philippines was being
controlled by the large landlords. The small farmers in Philippines were struggling for
their rights to land and other natural resources.
The implementation of Agrarian reforms proceeded at a very slow pace. This
was due to the lack of political will. The redistribution of land was also very slow.
Comprehensive Agrarian Reform Law: Philippines the Republic Act No.
6657, alternatively called the Comprehensive Agrarian Reform Law was signed
by President Corazon C. Aquino on 10th June, [Link] Comprehensive
Agrarian Reform Law is responsible for the implementation of the Comprehensive
Agrarian Reform Program (CARP) in Philippines. The law focused on industrialization
in Philippines together with social justice.
CONCEPTS
Land reform – refers to the full range of measures that may or should be taken to
improve or
remedy the respect of to their rights in land
Defined as an integral set of measures singed to eliminate obstacles to
economic and social development arising out of defects in the agrarian
structure.
Agricultural tenancy
A manner of holding agricultural lands, is only one of several forms of land
tenure rights of land.
Land tenure structure Measures
Redistribution of private lands (through expropriation or purchase)
Distribution of lands in the public domain resettlement or colonization
Regulation of tenancy (provision on penalties for wrongful eviction of tenants,
prohibition of subletting by tenant, etc.)
Regulation of agricultural labor contracts and wages
Elimination of absentee landlordism and transfer of land ownership to actual
tillers
73
Production structure
A concept which relates to the nature, type and modus operandi as well as the
actual process of production or farm operation.
Directly related to the size, location and shape of production unit or holding,
which may be operated singly or with assistance from others.
DISTINGUISHED
Land Tenure Structure Production Structure
Rights in land Production and use of land
Ownership holding Operation holding
Refers to the right over land, whether in terms Refers to the actual management of
of full ownership or as circumscribed by law, holding or manner in which the land
irrespective of the manner in which the is cultivated or operated
holding is operated or managed. irrespective or ownership.
Agrarian structure
Is defined as a complex set or relationships within the agricultural sector
among tenure structure, production structure and the structure of supporting
services.
Agrarian Reform
Comprises of land reform and development of complimentary institutional
framework such as administrative agencies of the national government, rural
education and social welfare institutions.
It means remedying not only the distribution and use of land but also and
especially, the accompanying human relations regarding lands, including
economic, social and political relations.
74
6. Construction of infrastructure facilities such as feeder roads, irrigation
systems, etc., and the establishment of rural electrification
7. Organization of various types of voluntary associations
8. Providing employment opportunities to underemployed or surplus rural labor;
and;
9. Other services of a community development nature
75
b. deeply rooted in history, the tenancy system created a kind of
tenants who are strongly traditional and highly dependent-minded;
and
c. There are only three kinds of landlords; the benevolent one who
acts like a father to the tenant; the malevolent one who
oppresses, and one with the combined characteristics of the first
two.
3. Socio-cultural changes from agrarian reform. According to the general
experience in countries which have achieved successes in their agrarian
reform programs, agrarian reform had resulted to favorable socio-cultural
changes which may be summarized as follows;
a. A change from self-subsistent outlook to one of surplus. The
farmers began putting all their energies in the farm;
b. A sound social order in the farming villages was enhanced
significantly. The farmers became more conscious of the need to
maintain peace and stability in the community so that they could
continuously enjoy the increased benefits in the farm;
c. Farmers’ initiative and active participation in leadership roles were
promoted. Before, such roles were the monopoly of the landowning
class. After land reform, farmers began forming associations stood
in equal footing with their erstwhile landlords in social gatherings
and club meetings. They, too began to take active participation in
local and national elections; and
d. As land reform enhanced agricultural productivity and
consequently, increase net family incomes, the farmer were able to
send their to school. They widened their contracts with the outside
world through frequent trips to market and other places or through
communication facilities which they acquired.
76
Changes in the agrarian structure can be achieved in practice by revolutionary
means, by an authoritarian regime or by evolutionary means through the democratic
process.
Many countries in Asia and in the Far East have legislated for programs of
agrarian reform during the last four decades. There has been however, a wide gap
between the declared objectives of such legislation and the actual realization. This
has been attributed to the failure to appreciate the peculiar nature and the needs of
land reform implementation.
On the other hand, agrarian reform and agricultural development need from a
well-developed industry, the following:
a. market for surplus production
b. agricultural machinery, chemicals and research
c. employment for excess manpower; and
d. capital generated by industry.
77
a. we have a labor force that is more or less adequately fed on very
cheap staples.
b. we must develop an agricultural sector that is increasingly well-off in
terms of surplus income. Not all our products can be exported; and
c. there must be consumption within the country. This internal or
domestic demand cannot be created unless the farming sector is able
to afford the products of industry.
Scope
Lands Covered
78
b. Agricultural activity means the cultivation of the soil, planting of crops,
growing of fruit trees, raising of fish, including the harvesting of such farm
products, and other farm activities and practices performed by a farmer in
conjunction with such farming operations done by persons whether natural or
juridical.
1. Under Section 10, excluded from the coverage of the CARL are lands actually,
directly and exclusively used for:
a. Parks;
b. Wildlife;
c. Forest reserves;
d. Reforestation;
e. Fish sanctuaries and breeding grounds;
f. Watersheds and mangroves.
2. Private lands actually, directly and exclusively used for prawn farms and
fishponds shall be exempt from the coverage of this Act: Provided, That said
prawn farms and fishponds have not been distributed and Certificate of
Land Ownership Award (CLOA) issued to agrarian reform beneficiaries
under the Comprehensive Agrarian Reform Program.
Retention Limit
1. Five hectares is the retention limit. No person may own or retain, directly or
indirectly, any public or private agricultural land, the size of which shall vary
according to factors governing a viable family-sized farm, such as commodity
produced, terrain, infrastructure, and soil fertility as determined by the
Presidential Agrarian Reform Council (PARC), but in no case shall the retention
limit exceed five (5) hectares.
79
a. Farmer refers to 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.
b. Farmworker is a natural person who renders service for value as an
employee or laborer in an agricultural enterprise or farm regardless of
whether his compensation is paid on a daily, weekly, monthly or "pakyaw"
basis. It includes an 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.
Before any award is given to a farmer, the qualified children of the landowner
must receive their three hectare award.
Rural women refer to women who are engaged directly or indirectly in farming
and/or fishing as their source of livelihood, whether paid or unpaid, regular or
seasonal, or in food preparation, managing the household, caring for the children,
and other similar activities.
Otherwise known as the Republic Act (RA) No. 9700 is the amendatory law
that extends yet again the deadline of distributing agricultural lands to farmers for
five years. It also amends other provisions stated in CARP. CARPER was signed into
law on August 7, 2009, which extended the 1988 Comprehensive Agrarian Reform
Law (RA 6657) will itself expire in June 2014
An Act strengthening the Comprehensive Agrarian Reform Program
(CARP), extending the acquisition and distribution of all agricultural lands,
instituting necessary reforms, amending for the purpose certain provisions
of Republic Act No. 6657, otherwise known as the Comprehensive Agrarian
Reform Law of 1988, as amended, and appropriating funds therefore
80
to the prescribed award limits. The determination of the size of the land for
distribution shall consider crop type, soil type, weather patterns and other pertinent
variables or factors which are deemed critical for the success of the beneficiaries.
For purposes of this Act, a landless beneficiary is one who owns less than
three (3) hectares of agricultural land.
In general, the land awarded to a farmer- beneficiary should be in the form of:
a. An individual title, covering one (1)contiguous tract or several parcels of land
cumulated up to a maximum of three (3) hectares.
b. The beneficiaries may opt for collective ownership, such as co-workers or
farmers cooperative or some other form of collective organization and for the
issuance of collective ownership titles: Provided, That the total area that may
be awarded shall not exceed the total number of co-owners or members of the
cooperative or collective organization multiplied by the award limit above
prescribed, except in meritorious cases as determined by the PARC. The
conditions for the issuance of collective titles are as follows:
1. The current farm management system of the land covered by CARP will
not be appropriate for individual farming of farm parcels;
2. The farm labor system is specialized, where the farmworkers are
organized by functions and not by specific parcels such as spraying,
weeding, packing and other similar functions;
3. The potential beneficiaries are currently not farming individual parcels hut
collectively work on large contiguous areas; and
4. The farm consists of multiple crops being farmed in an integrated manner
or includes non- crop production areas that are necessary for the viability
of farm operations, such as packing plants, storage areas, dikes, and other
similar facilities that cannot be subdivided or assigned to individual
farmers.
References
De Leon, Hector S. 2000 and 2005. Textbook on Agrarian Reform and Taxation. Rex
Bookstore
Fabella, Raul V. 2014. Comprehensive Agrarian Reform Program (CARP): Time to Let
Go. UP
School of Economics Retrieved: August 31, 2015. From:
[Link]/dp/[Link]/dp/ article/download/1455/924
Gabay, Bon Kristoffer G. et. al, 2007. Economics: Its Concepts & Principles (with
Agrarian
Reform and Taxation), Rex Book Store
J.A.B. Bulao and Associates. 2011. Legal Note 0093: Brief History of Land Reform
Laws.
81
Retrieved: August 31, 2015. From: [Link]
0094-brief history-of-land-reform-laws/
Manapat, Carlos L. et. al, 2010. Economics Taxation and Agrarian Reform, C & E Pub.,
Inc
Exercise No. 11
AGRARIAN REFORM
Identification. Read the statement carefully and identify the best word/s suited to
the statement. Write your answer on the space before each number.
82
____________________5. The emancipation of the tiller from the bondage of the soil.
____________________6. The implementing agency of CARP.
_____________________7. Known as Comprehensive Agrarian Reform Extended Reform
Law.
____________________8. An Act created the Land Bank of the Philippines (LBP).
_____________________9. A manner of holding agricultural lands, is only one of several
forms
of land tenure rights of land.
____________________10. A concept that involves matters like credit, marketing, the
supplying of agricultural requisites, processing, storage,
etc. and
other technical assistance bearing on reforms of tenure and
production structures.
_____________________11. The democratization of income and wealth by equalizing
access to
land as the basic productive resource.
_____________________12. The full and fair equivalent of the loss sustained by the
landowner.
_____________________13. They are designed to insure the success of the farmer who
has
acquired anew tenure status as lessee, amortizing owner-
cultivator.
_____________________14. Refers to the actual management of holding or manner in
which
the land is cultivated or operated irrespective or ownership.
____________________15. The date of issuance of Executive Order No 229 (EO 229)
providing, as its title indicates, the mechanisms of CARP
implementation
Multiple Choice. Choose the best letter of your choice and write your answer on the
space before each number. Erasure is considered invalid.
83
______9. When was RA 9700 created?
a. June 10,1988 b. October 21, 1972 c. August 8, 1963 d.
August 7, 2009
______10. RA 3844 is also known as:
a. Tenants Emancipation Decree c. CARP
b. Code of Agrarian Reform in the Philippines d. CARPER Law
______ 11. PD 27 is also known as:
a. Tenants Emancipation Decree c. CARP
b. Code of Agrarian Reform in the Philippines d. CARPER Law
______ 12. Comprehensive Agrarian Reform Law of 1988
a. RA 6900 b. RA7900 c. RA 8435 d. RA 6657
______ 13. The former president of the Philippines who signed PD 27
a. Corazon C. Aquino c. Ferdinand E. Marcos
Discussion
1. Discuss the difference between land reform and agrarian reform.
2. Cite at least two examples of support services and explain its effects on the
lives of its beneficiaries.
84