Republic of the Philippines :
House of Representatives:
Quezon City, Metro Manila X »

Nineteenth Congress
First Regular Session

HOUSE BILL NO. 3409

Introduced by Representative Arnan C. Panaligan

EXPLANATORY NOTE

This bill seeks to emancipate agrarian reform beneficiaries by condoning all
unpaid amortizations and interests on the lands awarded to them under the
comprehensive agrarian reform program.

Article XIII Section 4 of the 1987 Philippine Constitution states 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. To this end, the State shall encourage and undertake the just
distribution of all agricultural lands, subject to such priorities and reasonable
retention limits as the Congress may prescribe, taking into account ecological,
developmental, or equity considerations, and subject to the payment of just
compensation. In determining retention limits, the State shall respect the right of
small landowners. The State shall further provide incentives for voluntary land-
sharing.”

The imbalance of power between landowners and tenant farmers has given
rise to social tensions and economic losses. To even the playing field and
accelerate rural development, different agrarian reform programs were introduced
that directed the redistribution of private lands to reduce social inequity, and the
distribution of alienable lands of public domain to promote the increase of
agricultural production.

Consistent with the basic principle of “/and to the tiller,” Republic Act No.
6657, otherwise knowns as the “Comprehensive Agrarian Reform Law of 1998,”
as amended by Republic Act No. 9700, directed the distribution and redistribution


of certain public and private agricultural lands to tenant farmers, subject to
payment of just compensation for the landowners. To help the beneficiaries to pay
the lands awarded to them, they were allowed to pay the same in thirty annual
amortizations. °

More than thirty years after the enactment of the Comprehensive Agrarian
Reform Law, the social justice and agricultural development objectives of the law
have not been fully realized. Some of the beneficiaries are still unable to pay the
annual amortizations and there is still risk of losing the lands awarded to them.

One of the priorities of the present administration is to emancipate the
agrarian reform beneficiaries from agrarian debt burden by condoning unpaid
amortizations and interest. This was expressly stated by President Ferdinand
Romualdez Marcos Jr. during his first State of the Nation Address on July 25,
2022. He highlighted that the condonation of the existing agrarian reform loans in
the amount of 58.125 billion pesos will benefit around 654,000 agrarian reform
beneficiaries, involving a total of 1.18 million hectares of awarded lands. Further,
the President also mentioned that agrarian reform beneficiaries who are still to
receive their awarded land under the Comprehensive Agrarian Reform Program
shall receive it without any obligation to pay any amortization.

This proposed condonation policy is not only a social measure but also a
strategic investment to the country’s food security and agricultural production. By
emancipating the farmers from the burdens of paying amortizations, they will be
able to focus their resources to improve their farm productivity that will yield
positive multiplier effects such as increased market supply and overall national
production.

In view of the foregoing, the approval of this bill is earnestly sought.

a, ~

REP. ARNAN C. PANALIGAN



wayvanaswne

1

12

13

14

Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

HOUSE BILL No. 3409

Introduced by Representative Arnan C. Panaligan

AN ACT
EMANCIPATING AGRARIAN REFORM’ BENEFICIARIES BY
CONDONING ALL UNPAID AMORTIZATIONS AND INTERESTS ON
THE LANDS AWARDED TO THEM UNDER THE AGRARIAN
REFORM PROGRAM

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. All unpaid amortizations and interests, including penalties or
surcharges, if any, of agrarian reform beneficiaries payable to the Land Bank of
the Philippines under Section 26 of Republic Act (RA) No. 6657, otherwise
known as the “Comprehensive Agrarian Reform Law of 1988,” as amended by
Republic Act No. 9700 are hereby condoned.

For purposes of this Act, agrarian reform beneficiaries refer to farmers or
farmworkers who were granted lands under RA 6657, as amended and
Presidential Decree (PD) No. 27, Series of 1972, and who have outstanding

balance payable to the Land Bank of the Philippines.


1

10

wn

2

14

SEC 2. Upon the effectivity of this Act, all remaining agricultural lands
for distribution under RA 6657, as amended, shall be awarded for free to
qualified agrarian reform beneficiaries.

SEC. 3. Within thirty (30) days from the effectivity of this Act, the
Secretary of Agrarian Reform shall, in coordination with the Philippine
Agrarian Reform Council, promulgate the necessary rules and regulations for
the effective implementation of this Act.

SEC. 4. Section 26 of RA 6657, as amended, is hereby repealed. All
laws, decrees, orders, rules and regulations or parts thereof inconsistent with or
contrary to the provisions of this Act are repealed, amended or modified
accordingly.

SEC. 5. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,