THIRTEENTH CON 
OF THE PHILIPPIN 
First Regular Session 
2 
. B. N 
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Introduced by Senator Jinggoy 
ercito Estrad 
EXPLANATORY NOTE 
The coconut industry is a top dollar earner chalking $900 million to about $1 
billion, and a potential annual earner of $2 billion if rehabilitated. As a dollar earner, the 
coconut and all its by-products surpass other export products, as it requires no import 
casts. In fact, the Philippines is one of the world's biggest exporters of coconut oil, 
which is either used for food or other industries. 
Unfortunately, unstable trends in production and world market prices lead 
observers to view the industry as a sunset industry, which will eventually die and stop 
bringing income to those who depend on it for a living. The number one problem is the 
dwindling supply of coconuts. Coconut trees are cut down for lumber, while some 
cocolands are being converted to avoid the operation of land reform. Thus, the 
marginal coconut farmer is now in quandary. Most of them are seriously thinking of 
selling their cocolands, or of converting it, and leaving coconut farming in favor of 
promising opportunities in other areas of endeavor. 
Hence, it is incumbent upon 
Congress to address these conditions afflicting the coconut industry, which comprises a 
substantial sector of Philippine agriculture and a major source of our export earnings. 
This bill seeks, therefore, to alleviate the present condition of the coconut 
industry and ensure its continuity and sustainability by classifying it as last priority for 
coverage in the Comprehensive Agrarian Reform Program of the government so as not 
to discourage coconut farmers in investing further in coconut farming. This measure 
also provides for a stricter or higher penalty for violations of the prohibited acts and 
omissions under Republic Act. No. 6657. 
Early approval of this bill is earnestly requested. 
DA 
Senator 


‘ 1  
THIRTEENTH CONGRESS OF THE RE 
First Regular 
OF THE PHILIPPINES 
”134 
JUij 30 
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S. B. No. 
Introduced by Senator Jinggoy Ejercito Estrada 
AN ACT 
AMENDING CERTAIN SECTIONS OF REPU LIC ACT NUMBER SIX THOUSAND 
SIX HUNDRED FIFTY SEVEN (R.A. 6657), AS AMENDED, OTHERWISE KNOWN AS 
THE “COMPREHENSIVE AGRARlAN REFORM LAW OF 1998”, AND FOR OTHER 
PURPOSES 
Be if enacfed by the Senate and House of Represenfafives of the Philippines in 
Congress assembled: 
SECTION 1. Section 7 of Republic Act Numbered Six Thousand Six Hundred 
Fifty Seven (R.A. 6657), as amended, otherwise known as the “Comprehensive 
Agrarian Reform Law of 1998’ is hereby amended to read as follows: 
SEC. 7. 
Priorities. - The Department of Agrarian Reform (DAR) in 
coordination with the Presidential Agrarian Reform Council (PARC) shall plan 
and program the acquisition and distribution of all agricultural lands through a 
period of ten (IO) years from the effectivity of this Act. Land shall be acquired 
and distributed as follows: 
Phase One: Rice and corn lands under Presidential Decree No. 27; All idle 
or abandoned lands; all private lands voluntarily offered by the owners for 
agrarian reform; all lands foreclosed by government financial institutions; all 
lands acquired by the Presidential Commission on Good Government (PCGG); 
and all other lands owned by the government devoted to or suitable for 
agriculture, which shall be acquired and distributed immediately upon the 
effectivity of this Act, with the implementation to be completed within the period of 
not more than four (4) years. 


Phase Two: All alienable and disposable public agricultural lands; all 
arable public agricultural lands under agro-forest, pasture and agricultural leases 
already cultivated and planted to crops in accordance with Section 6, Article Xlll 
of the Constitution; all public agricultural lands which are to be opened for new 
development and resettlement; and all private agricultural lands in excess of fifty 
(50) hectares, insofar as the excess hectarage is concerned, to implement 
principally the rights of farmers and regular farm workers, who are landless, to 
own directly or collectively the lands they till, which shall be distributed 
immediately upon the effectivity of this Act, with the implementation to be 
completed within a period of not more than four (4) years. 
Phase Three: All other privated agricultural lands with large landholdings 
and proceeding to medium and small under the following schedule: 
(a) Landholdings above twenty-four (24) hectares up to fifty (50) hectares, to 
begin on the fourth (4th) years from the effectivity of this Act to be completed 
within three (3) years; and 
(b) Landholdings from the retention limit up to twenty-four (24) hectares, to 
begin on the sixth (sth) 
year from the effectivity of this Act and to be 
completed within four (4) years; to implement principally the right of farmers 
and regular farmworkers who are landless, to own directly or collectively the 
lands they till. 
The schedule of acquisition and redistribution of all agricultural lands 
covered by this program shall be made in accordance in accordance with the 
above order of priority, which shall be provided in the implementing rules to be 
prepared by the Presidential Agrarian Reform Council (PARC), taking into 
consideration the following: The need to distribute lands to the tillers at the 
earliest practicable time, the need to enhance agricultural productivity; and the 
availability of funds and resources to implement and support the program: 
PROVIDED, ALL LANDS DEVOTED PRIMARILY TO COCONUT FARMING 
SHALL BE GIVEN LAST PRIORITY IN THE SCHEDULE OF ACQUISITION 
AND REDISTRIBUTION WHETHER THE SAME BE PUBLIC OR PRIVATED, 
TENANTED OR UNTENANTED. 
In any case, the PARC, upon recommendation by the Provincial Agrarian 
Reform Coordination Committee (P~RCCOM) , may declared certain provinces 


or regions as priority land reform areas, in which case the acquisition and 
distribution of private agricultural lands therein may be implemented ahead of the 
above schedules. 
In effecting the transfer within these guidelines, priority must be given to 
lands that are tenanted. 
The PARC shall establish guidelines to implement the above priorities and 
distribution scheme, including the determination of who are qualified 
beneficiaries: Provided, that 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 
are of the and he owns and the award ceiling of three (3) hectares. 
SECTION 2. Section 74 of the same Act, is hereby amended to read as follows: 
SEC. 74. Penalties. - Any person who knowingly or willfully violates the 
provisions of this Act shall be punished by imprisonment of not less than [one (q) 
month not more than three (3) or a fine of not less than one (P1,OOO.OO) 
and not 
more than fifteen thousand pesos (P15,000.00),] SIX (6) MONTHS TO NOT 
MORE THAN F' UR (4) YEARS OR A FINE OF NOT LESS THAN FIVE 
THO USAN D P