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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
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First Regular Session 
SENATE 
S. No. 940 
1 0 JUL -8 1\10 :42 
Introduced by Senator Manuel "Lito" M. Lapid 
EXP~NATORY NOTE 
The tragedy of the commons is an allegory which demonstrates the 
free rider problem related to public goods. In the case of forest lands and 
forest resources, the failure to guard the common property from wholesale 
destruction by timber companies led to the denudation of our forests and 
the consequent natural calamities that followed. 
The total log ban that was advocated as a response to the problem of 
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denuded forests is a pendulum swing to the opposite extreme. A total log 
ban is clearly not an optimum nor an effective response because it does 
not provide sufficient incentives that are consistent with the preservation of 
forest resources. 
This bill proposes a system of private land forestry, defining special 
agricultural lands and permanent agro-forestry zones, and vesting in 
private individuals the property rights to such lands. Private individuals 
exercising limited property rights over these lands under the supervision of 
Local Government Units (LGUs) will constitute the more effective enforcers 
of practices that will contribute towards the renewal and preservation of our 
forest lands and resources. 
In view of the foregoing, early passage of this bill is earnestly 
requested. 
aP~ 
MAZ:::?;" M. LAPID 
Senator 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.No. 940 
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Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
INSTITUTIONALIZING 
PRIVATE 
LAND 
FORESTRY 
TO 
ENHANCE 
REFORESTATION 
AND 
ENVIRONMENTAL 
PROTECTION 
AND 
PROVIDING INCENTIVES THEREOF, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of representatives of the Republic of 
the Philippines in Congress assembled: 
SECTION 1. 
Short Tit/e. -
This Act shall be known as the "Private Land 
Forestry and Incentive Act of 2010." 
SEC. 2. 
Declaration of Policy. - It is declared policy of the State to protect 
and advance the right of the people to a balanced and healthful ecology through forest 
conservation and reforestation, The State also recognizes the indispensable role of the 
private sector in reforestation, 
SEC. 3. 
Coverage. - This Act shall cover social forestry areas, alienable I 
disposable land, and privately owned lands engaged in agro-forestry activities, 
SEC. 4. 
Special Agricultural Lands and Permanent Agro-Forestry 
Zones. -
All land areas covered by the integrated social forestry program of the 
• 
Department of Environment and Natural Resources (DENR) pursuant to Letter of 
Instruction No, 1260 and such other areas as may be determined by the DENR are 
hereby classified as special agricultural lands, declared as "Permanent Agro-Forestry 
Zones" and shall be available for land ownership or title by qualified beneficiaries, As 
special agricultural lands such areas shall continue to be farmed with at least twenty 
percent (20%) of the land planted to the trees or reforestation species and with 
environmental protection measures, 
SEC. 5. 
Who May Apply. - (1) All individuals qualified to be beneficiaries of 
the integrated social forestry program of the DENR as provided in Administrative Order 
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No.4 dated February 27, 1991 are hereby declared qualified to apply for the titling of a 
forestland of not exceeding seven (7) hectares of Permanent Agro-Forestry Zone. 
(2) 
All 
individual 
forestland 
occupants 
awarded 
with 
certificates 
of 
stewardship contracts under the integrated social forestry program of DENR as of the 
effectivity of this Act are hereby qualified to apply for the corresponding land titles. 
It is hereby provided that the qualifications to be beneficiaries of the integrated 
social forestry program of government are as follows: Must be of legal age; Must be a 
citizen of the Philippines; Must be actual tillers or cultivators of the land to be allocated; 
and Must be living within the project area or adjacent barangay I sitio. 
SEC. 6. 
Conditions 
ownership or titles to qualified 
following conditions: 
for; the Grant -
The grant of certificates of land 
beneficiaries under this Act shall be subject to the 
(a) 
At least twenty percent (20%) of the social forestry area awarded to the 
occupant shall be devoted to tree farming of suitable species to contribute 
to the reforestation efforts of the government; 
(b) 
Trees and other vegetation along the banks of rivers and streams, 
bordering or passing through the allocated areas, shall be protected and 
preserved; Provided, That if the channel is at least five (5) meters wide, 
the protected strip, perpendicular to the edge of the normal high waterline, 
shall be twenty (20) meters. In case of rivers or waterways less than five 
meters in width, the strip shall be ten meters on each side; 
(c) 
The allocated land sf;lall be developed, consistent with scientific and 
environmental protection practices, into productive farms which are 
economically viable and enable the occupant and his family to be self-
reliant; and 
(d) 
Regardless of transfer' of ownership, the area shall not be converted to 
uses other than agro-forestry except as determined by scientific I technical 
studies and expressly allowed by law. 
SEC. 7. 
Jurisdiction over Agro-Forestry Zones. -
Consistent with 
Section 17 of Republic Act No. 7160 or the Local Government Code, the local 
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governments shall have primary jurisdiction over agro-forestry zones for purposes of the 
implementation and enforcement of the provisions of this Act. 
SEC. 8. 
Transferability of Ownership. - Social forestry areas acquired by 
beneficiaries under this Act may not be sold, transferred or conveyed except through 
hereditary succession or to other qualified beneficiaries for a period of five (5) years 
from date of issuance of the original certificate of land ownership or title. 
SEC. 9. 
Private Forestry Areas. -
The following shall be considered as 
private forestry areas: (a) agricultural or alienablefdisposable lands at least twenty 
percent (20%) of which area is devoted to tree farming of reforestation species; (b) 
private lands converted to farms at least twenty percent (20%) of which area is planted 
to reforestation species; and (c) soc,ial forestry or agro-forestry zone areas covered by 
this Act. 
SEC. 10. 
Incentives. - The following incentives are given to owners and 
cultivators f developers of private forestry areas: 
a) 
Exemption from payment of all taxes and agricultural I forest charges 
including tariffs or import duties on agricultural I forestry equipment, 
machinery and farm processing and other inputs, except net income tax; 
b) 
Permission to sell, trade, dispose or export agro-forestry produce even in 
raw form; 
c) 
Permission to sell or dispose of the land area and assets thereof in 
secondary markets subject to the restriction in Section 8 of this Act; 
d) 
Government' guarantee of up to ninety percent (90%) of the amount 
loaned from local or foreign sources for private forestry operations; 
Provided, however, That the property and assets therein are mortgaged to 
the government as collateral; 
e) 
Preferential technical and administrative assistance from government 
agencies. 
SEC. 11. 
Disposal of Foreclosed Private Forestry Areas. -
All private 
forestry areas or lands foreclosed or acquired by the government through default of 
3 


loans or violation of law shall, within one (1) year after their titles are transferred in favor 
of the government, to be disposed to qualified persons or entities. 
SEC. 12. 
Economies of Scale. - Individual owners of private forestry areas 
may form federations for purposes of economies of scale of operations; Provided, 
however, That individual land ownership or title is preserved, and that 20% of the total 
land area, thus pooled, is devoted to tree farming of reforestation species and the 
remaining areas subjected to adequate environmental protection. 
SEC. 13. 
Penal Provisions. -
Social forestry areas which have not 
adequately accomplished a9ro-forestry activities after five (5) years of ownership shall 
be forfeited in favor of the government. Other violations of forestry, land and 
environment and other laws shall be punished accordingly with respect to such codes or 
laws. 
SEC. 14. 
Implementing Guidelines. - The Department of Interior and Local 
Government (DILG), in consultation with the Department of Environment and Natural 
Resources (DENR), Department of Agriculture (DA) and Department of Agrarian 
Reform (DAR), the Land Bank and other agencies concerned shall formulate the 
necessary implementing rules and regulations within ninety (90) days after effectivity of 
this Act; Provided, That such regulations include the creation of inter-agency Oversight 
Committee at the appropriate field levels. 
SEC. 15. 
Separability Clause. - If any section or provision of this Act shall 
be declared unconstitutional or invalid, the other sections or provisions not affected 
thereby shall remain in full force and effect. 
SEC. 16. 
Repealing Clause. -
All laws, decrees, orders, rules and 
regulations and other issuances inconsistent with the provisions of this Act are deemed 
modified, revoked or repealed accordingly. 
SEC. 17. 
Effectivity. -
This Act shall take effect fifteen (15) days after its 
publication in two (2) leading newspapers of national circulation. 
Approved, 
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