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
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.
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President Corazon Aquino enacted the following laws:
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.
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.
The Agrarian reform program under the Arroyo administration is anchored on the vision
“To make the countryside economically viable for the Filipino family by building partnership and
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promoting social equity and new economic opportunities towards lasting peace and sustainable
rural development”
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 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
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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, 1988.The 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
Reform – implies the existence of a defect that something is deformed or malformed and does
not suit the existing condition.
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
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.
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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 of full Refers to the actual management of
ownership or as circumscribed by law, irrespective of holding or manner in which the land is
the manner in which the holding is operated or cultivated or operated irrespective or
managed. 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.
Land Reform – refers to the improvement of the farmer’s relationship to the land that
they cultivate.
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Coverage – it covers the private lands, public lands and other lands of the public
domain which are classified as agricultural, regardless of the crops planted and tenurial
arrangement.
Beneficiaries – farmers and landowners stand to benefit. Farmers will own the land
they till and landowners will be amply compensated and provided with necessary capital
to reinvest industry.
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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.
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.
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1. Agrarian reform is a complex and often controversial program which usually meets with
opposition form vested interests. It is, therefore, necessary that any organization for its
implementation should provide for a line of command from the center to filed levels in
order to insure that policy is enforced and supported at all levels.
2. In view of the fact that all support is usually withdrawn by landlord on the introduction of
the program, it is essential that beneficiaries are provided with the said program.
3. Since the preventing political, economic, social and administrative systems are usually
weighed against the would-be beneficiaries, it is necessary that the administrative
organization and procedures as well as the judicial system by which the newly conferred
rights are to be enforced, are refashioned in such a manner as to enable the attainment
of the objective of the program; and
4. Lastly, since existing administrators are often not adequately oriented or sympathetic
towards the reforms and such a program is often obstructed by vested interests at all
levels, it is desirable to involve the beneficiaries in the implementation of the programs.
Industrialization needs from agrarian reform and a developed agriculture, the following:
a. surplus agricultural crops as raw materials;
b. mass purchasing power of the peasant masses;
c. capital and skill released from underutilized land by agrarian reform
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.
Important condition for industrialization. – To industrialize, the following condition are imperative:
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.
To ensure the continuity of the enthusiasm and spontaneous action generated in local
agrarian reform efforts, it is necessary:
a. To broaden the base of these institutions to include all interests in the local
community;
b. To provide new institutions initially with adequate external financial, technical
and political support; and;
c. To continuously expose these institutions to new knowledge and scientific
advances relevant to their needs.
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Otherwise known as Republic Act (RA) No. 6657 is the redistribution of public and
private agricultural lands to farmers and farmworkers who are landless, irrespective of tenurial
arrangement. CARP’s vision is to have an equitable land ownership with empowered agrarian
reform beneficiaries who can effectively manage their economic and social development to have
a better quality of life.
One of the major programs of CARP is Land Tenure Improvement, which seeks to hasten
distribution of lands to landless farmers. Similarly, the Department offers Support Services to the
beneficiaries such as infrastructure facilities, marketing assistance program, credit assistance
program, and technical support programs. Furthermore, the department seeks to facilitate,
resolve cases and deliver Agrarian Justice.
The legal basis for CARP is the Republic Act No. 6657 otherwise known as
Comprehensive Agrarian Reform Law (CARL) signed by President Corazon C. Aquino on June
10, 1988. It is an act which aims to promote social justice and industrialization, providing the
mechanism for its implementation, and for other purposes.
Scope
Lands Covered
1. The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of tenurial
arrangement and commodity produced, ALL PUBLIC AND PRIVATE AGRICULTURAL
LANDS as provided in Proclamation No. 131 and Executive Order No. 229, including other
lands of the public domain suitable for agriculture: Provided, That landholdings of landowners
with a total area of five (5) hectares and below shall not be covered for acquisition and
distribution to qualified beneficiaries.
a. Agricultural land refers to land devoted to agricultural activity and not classified as
mineral, forest, residential, commercial or industrial land.
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.
2. Specifically, the following lands are covered by the Comprehensive Agrarian Reform Program:
a. All alienable and disposable lands of the public domain devoted to or suitable for
agriculture. No reclassification of forest or mineral lands to agricultural lands shall be
undertaken after the approval of this Act until Congress, taking into account ecological,
developmental and equity considerations, shall have determined by law, the specific
limits of the public domain;
b. All lands of the public domain in excess of the specific limits as determined by Congress
in the preceding paragraph;
c. All other lands owned by the Government devoted to or suitable for agriculture; and
d. All private lands devoted to or suitable for agriculture regardless of the agricultural
products raised or that can be raised thereon.
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.
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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.
2. Additional three hectares may be awarded to each child, subject to the following
qualifications:
a. That the child is at least fifteen (15) years of age; and
b. That the child is actually tilling the land or directly managing the farm.
Before any award is given to a farmer, the qualified children of the landowner must
receive their three hectare award.
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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
Beneficiaries shall be awarded an area not exceeding three (3) hectares, which may
cover a contiguous tract of land or several parcels of land cumulated up 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.
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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:
www.econ.upd.edu.ph/dp/index.php/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.
Retrieved: August 31, 2015. From: http://jabbulao.com/2011/07/29/legal-note-0094-
brief history-of-land-reform-laws/
Manapat, Carlos L. et. al, 2010. Economics Taxation and Agrarian Reform, C & E Pub., Inc
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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.
Multiple Choice. Choose the best letter of your choice and write your answer on the space
before each number. Erasure is considered invalid.
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b. 5 has for the landowner and 3 has per child who must be at least 15 years old
c. 5 has for landowner and 5 has per child whether or not they till or manage the land.
d. 5 has for the landowner and 3 has per child who must be at least 15 years old and
actually tilling or managing the land.
_____ 8. The financing arm of Agrarian Reform program
a. DBP b. PNB c. LBP d. Metrobank
______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
b. Fidel V. Ramos d. Gloria M. Arroyo
______ 14. Which of the following is refers to a natural person who is employed on a recurrent,
periodic or intermittent basis by an agricultural enterprise or farm?
a. Farmworker c. farmer
b. Seasonal farmworker d. collective
______ 15. The following are excluded from the coverage of the ACT, except
a. Parks b. Reforestations c. Tenanted land d. Fish sanctuaries
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.
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