NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
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SENATE
S.B. No. 1112
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*22 AUG ~9 P3 35
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Introduced by SENATOR IMEE R. MARCOS
AN ACT
FULFILLING THE EMANCIPATION OF AGRARIAN REFORM 
BENEFICIARIES FROM THE DEBT BURDEN THROUGH THE FREE AWARD OF 
AGRICULTURAL LANDS UNDER THE COMPREHENSIVE AGRARIAN REFORM 
PROGRAM, TO APPROPRIATE FUNDS THEREFOR,
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The use of property bears a social function, and this is emphatically asserted in 
the paramount law. Article II, Section 21 of the 1987 Constitution states that,
State shall promote comprehensive rural development and agrarian reform". Likewise, 
Article XIII, Section 4 provides that "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 "
On 21 October 2022, the country will celebrate the fiftieth (50th) anniversary of 
Presidential Decree (P.D.) No. 27, making it the longest land reform program In history. 
P.D. No. 27 breaks down agricultural estates to a maximum of 7 hectares which is also 
acknowledged by R.A. No. 6657 otherwise known as the, "Comprehensive Agrarian 
Reform Law of1988'.
From 2016 to 2022, the growth of the agricultural sector varied between -1.0% 
to 4.2%, posting negative growth in 2016, 2020 and 2021. The leading cause for low 
agricultural growth In the country lack of investment in the sector due to uncertainty 
in the status of agricultural lands. Land distributed under agrarian reform suffers from 
restrictions associated with lack of individual land titles. Collective Certificate of Land 
Ownership Awards (Collective CLOAs) are problematic due to property right issues 
associated with high uncertainty of ownership and high transaction costs associated 
with securing and disposing the land. As such, there Is a need to expedite the individual 
titling of land grants.


In addition, the current law does not enable ARBs to use the land as a collateral 
for bank loans for a period of ten (10) years, which give rise to the phenomenon of the 
"landed poor". This phenomenon result in the rise of Informal lending channels that 
circumvent the law and result in farmers paying onerous Interest on production loans, 
leaving them with little money to spend on improving their capital stock.
The imposition of this debt burden ignores the need to fully emancipate the 
Filipino farmer from the bondage of the soil. It implies that the Filipino Farmer, after 
being subjected to centuries of oppression, still has to pay a price for the land he has 
tilled. It degrades the Agrarian Reform Program as a mere installment purchase 
scheme. It loses sight of the social justice dimension of an authentic agrarian reform 
program: it is never a mere transfer of ownership of land subject to a monetary 
consideration; it is an emancipation transforming the serf to master.
In order to fulfill the agrarian reform program, the Department of Agrarian 
Reform (DAR) needs to address the immediate distribution of land to agrarian reform 
beneficiaries. As of January 2022, DAR still has a backlog of 507,243 hectares, of which 
84.5% (428,347 hectares) are to be compensated through the Land Bank.
As of 1 August 2022, 654,047 ARBs still have to amortize a total of 58.13 billion 
pesos to the Land Bank. Of the 58.13 billion pesos to be amortized, 43.67 billion pesos 
due from 390,714 beneficiaries is not yet receivable due to the absence of individual 
titles (still collective CLOA) and/or Land Distribution and Information Sheets, leaving 
the LBP with 14.46 billion pesos of receivables.
Looking at 2021 collection data, only 19.6% of collectibles were collected. The 
low collection rate is due to a number of reasons. First, the administrative cost needed 
to collect from farmer-beneficiaries is prohibitive given the geographic conditions in 
which the farmer-beneficiaries live. Second, the ability to pay of the farmers is heavily 
compromised by the exposure of the industry' to various weather disturbances. The 
industry also suffers from structural issues that further hamper the ability of the farmers 
to pay the amortization.
It is important to note that the government has a history of writing off loans and 
penalties in recognition of difficulties of payment. Therefore, writing off the agrarian 
reform-related receivables of the Landbank is in line with the principles of agrarian 
reform law, which is to uphold the welfare of landless farmers. Condonation and 
individual titling of agrarian reform lands will complete the emancipation of landless 
farmers from the feudal system of land ownership. In addition, it will also generate 70 
million pesos worth of savings for the Land Bank of the Philippines.
Moreover, the implementation of the Agrarian Reform Program cannot be seen 
as successful or complete until and unless adequate support services are given to the 
Agrarian Reform Beneficiaries (ARBs). However, the support services available to ARBs 
under the current law are limited to land surveys, titling, access to credit,
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infrastructures, services related to Agrarian Reform bonds, research and education, and 
other similar forms of assistance. The agrarian reform law ignores support services 
which are directly needed and Indispensable for the sustenance, dwelling, clothing, 
medical attendance, education, transportation, and other needs of the ARBs and their 
families. ARBs should be assisted by the State in ensuring that the needs of their 
families are immediately or simultaneously addressed as soon as the farmer or 
farmworker is enrolled under the program. There Is reason to believe that a significant 
number of ARBs resorted to illegally leasing or selling their awarded lands to 
businessmen or to the original haciendero out of the desperate need to raise funds for 
the support of the family.
The call of the times is not to end the Agrarian Reform Program. The challenge 
of the times is to ensure its continuation as an integral component of our national 
development and social justice programs. We proceed to the full emancipation of the 
ARBs from the Agrarian Reform debt burden by condoning their loans due to unpaid 
land amortizations, as well as unpaid interests, fees and charges and other payables 
as a consequence of their ownership of the awarded lands thereby, protecting their 
rights and safeguarding their welfare at all times.
Given the abovementioned circumstances, the immediate passage of this bill is 
necessary.
IMEE R.


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
Bn 'T'
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*22 AUG-9 P3 35
SENATE
S.B. No. 1112
RfcXElVLO Br
Introduced by SENATOR IMEE R. MARCOS
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AN ACT
FULFILLING THE EMANCIPATION OF AGRARIAN REFORM 
BENEFICIARIES FROM THE DEBT BURDEN THROUGH THE FREE AWARD OF 
AGRICULTURAL LANDS UNDER THE COMPREHENSIVE AGRARIAN REFORM 
PROGRAM, TO APPROPRIATE FUNDS THEREFOR,
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
SECTION 1. Short Title. - This shall be known as the "New Emancipation Act"
SEC. 2. Declaration of Policy. - It shall be the policy of the State to have 
equitable distribution of opportunities, income, and wealth to attain expanding national 
and local productivity that will act as the key to raising the quality of life for all. In 
relation to this, the present financial burden of Agrarian Reform Beneficiaries (ARBs) 
must be alleviated in order for them to focus their resources Into increasing the 
productivity and Improving the resiliency of their awarded lands.
Furthermore, the State recognizes that social justice is actualized not only when 
the landless farmer or farm worker becomes the owner of the land he or she tills but 
also when the landowner whose land has been acquired and distributed under the 
Comprehensive Agrarian Reform Program (CARP) is paid just compensation. Therefore,
It Is the policy of the State to ensure that landowners shall continue to be justly 
compensated for their lands.


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SEC. 3. Condondtion of the Agrorian Reform Debt. — All unpaid amortizations 
and interests, including penalties or surcharges, if any, of Agrarian Reform Beneficiaries 
(ARBs) due from loans secured under the CARP or from other agrarian reform programs
are hereby condoned by the Government and, all ARBs are relieved from the payment 
thereof.
SEC. 4. Termination of Payment of Compensation by Agrarian Reform 
Beneficiaries (ARBS) Under Voiuntary Land Transfer. - The financial obligation of the 
ARBs to pay the value of the awarded land to the landowners acquired under the 
voluntary land transfer scheme is hereby extinguished. Payment of the remaining 
balance of the compensation due the concerned landowners under the voluntary land 
transfer scheme, if any, shall be paid by the Government from the Agrarian Reform 
Fund through the Land Bank of the Philippines (LBP).
SEC. 5. Free Land Distribution to Agrarian Reform Beneficiaries. - Agrarian 
Reform Beneficiaries who are still to receive their awarded lands under the CARP or 
any other agrarian reform program shall do so without any obligation to pay any 
amortization. All agricultural lands covered under the CARP or any other agrarian 
reform program which have not been distributed at the time of effectivity of this Act, 
shall be distributed at no cost to the qualified beneficiaries.
SEC. 6. Broadened Scope of Support Services to Agrarian Reform Beneficiaries 
Under the Comprehensive Agrarian Reform Program. - In addition to the support 
services available to the ARBs under Section 37 of R.A. No. 6657, as amended, and 
without prejudice to the support services available to ARBs from other National 
Government Agencies, the DAR, together with the Presidential Agrarian Reform Council 
(PARC), shall ensure that support services and assistance indispensable for agricultural 
productivity and resiliency, enterprise development, and financial literacy of the ARBs 
are readily accessible and that the need of the ARBs for sustenance, dwelling, clothing, 
medical assistance, education, transportation, among others, are duly addressed. Any 
form of support services rendered by any banking or financial institution for the benefit 
of the beneficiaries and their families shall be deemed a form of support under the 
Agrarian Reform Program.
SEC. 7. Preference to Credit Faciiities and Support Services for Beneficiaries with 
Paid Amortizations. - Agrarian Reform Beneficiaries who have completed the payment


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of the amortizations and interest charges under Section 26 of Republic Act No. 6657, 
as amended. Section 6 of Executive Order No. 228 of 1987, and other agrarian reform
laws shall be given preference in the provision of support services and access to credit 
facilities.
SEC. 8. Issuance of Agrarian Reform Title. - The proper Registry of Deeds shall 
issue the Emancipation Patent, the Certificate of Land Ownership Award, or any other 
title based on the applicable agrarian reform law within sixty (60) days from the 
registration of the title in the name of the Republic of the Philippines.
SEC. 9. Condition for Availing of the Benefits under this Act. - It is indispensable 
that an ARB shall continuously exhibit the willingness, aptitude, and ability to cultivate 
and make the awarded land as productive as possible, as provided under Section 22 of
R.A. No. 6657, as amended. In order for said beneficiary to avail of all the benefits 
under this Act.
SEC. 10. Restitution of the Agrarian Reform Award Forfeited Solely due to Non- 
Payment of the Annua! Amortizations and Interest Charges. - Any pending 
administrative or judicial case involving the forfeiture by the DAR of the agrarian reform 
award solely due to the failure of an ARB to pay the thirty-year amortization plus six
percent (6%) annual interest shall immediately be dismissed motuproprio, by the office 
or the court.
The execution of a final and executory administrative or judicial decision due to 
the failure of an ARB to pay the thirty-year amortization plus six percent (6%) annual 
interest, resulting to the disqualification of the ARB, the cancellation of the agrarian 
reform title, and the extinguishment of the rights of possession and ownership of the 
awarded land, as well as the removal of the person from the awarded land or the 
dismantling of any improvements found therein, shall be immediately terminated. The 
agrarian reform award shall immediately be restored to the ARB and the forfeiture 
decision shall accordingly be reversed. Any agrarian reform title cancelled as a result 
of the final and executory administrative or judicial decision shall immediately be 
reconstituted. In the event that the agricultural land has already been awarded to
another beneficiary, the DAR shall, as far as equitable, award another land to the 
disqualified ARB.


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SEC. 11. Disqualification of Agrarian Reform Beneficiaries due to Acts and 
Omissions constituting Violations of Agrarian Reform Laws. - Any person convicted by 
final judgment of any of the prohibited acts and omissions under Section 73 and meted 
with any of the penalties under Section 74 of Republic Act No. 6657, as amended, shall 
be disqualified from availing the benefits provided under this Act. A finding by final 
judgment that an ARB has failed to continuously exhibit the willingness, aptitude, and 
ability to cultivate and make the awarded land as productive as possible or has 
neglected or abandoned the awarded land continuously for a period of two (2) calendar 
years, as provided under Section 22 of R.A. No. 6657, as amended, shall disqualify such 
beneficiary from availing the provisions of this Act.
SEC. 12. Right of the Landowner to Just Compensation. - Nothing In this Act 
shall be interpreted in such a manner as to diminish the right of landowners to be justly
compensated for their agricultural lands acquired under the CARP and other agrarian 
reform programs.
SEC. 13. Implementing Rules and Regulations. - The DAR, with the technical 
assistance of the Land Bank of the Philippines (LBP), shall, within sixty (60) days from
the effectivity of this Act, formulate the necessary Implementing Rules and Regulations 
(IRR).
SEC. 14. Agency Support. - All other government offices and agencies are 
directed to render such prompt and necessary assistance, subject to applicable laws, 
rules, and regulations, to fully implement the provisions of this Act.
SEC. 15. Appropriation. -The amount necessary for the Implementation of this 
Act shall be charged against the Agrarian Reform Fund. The funding requirements for
the implementation of this Act shall be included in the annual budget of the DAR 
through the LBP.
SEC. 16. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.


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SEC. 17. Separability Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect.
SEC. 18. Effectivity. — This Act shall take effect after fifteen (15) days following 
the completion of Its publication either in the Official Gazette or in a newspaper of 
general circulation in the Philippines.
Approved,