Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ___ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
AN ACT 
PROVIDING FOR THE CONDONATION OF ALL UNPAID PRINCIPAL 
INTERESTS, PENALTIES, OR SURCHARGES ON LOANS SECURED 
BY AGRARIAN REFORM BENEFICIARIES UNDER THE 
COMPREHENSIVE AGRARIAN REFORM PROGRAM  
AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
The Comprehensive Agrarian Reform Program, implemented pursuant to Republic 
Act No. 6657, as amended, seeks to empower landless farmers and farmworkers through 
the equitable distribution of land and the provision of support services. Despite the 
substantial land acquisition and distribution accomplishments of CARP, however, the 
implementation of the program continues to be challenged by a number of issues, which 
in turn, impede the development of the sector and the promised economic empowerment 
and improvement of the lives of its farmer beneficiaries.  
Among the most glaring problems in the implementation of the CARP is the low loan 
repayment rates. According to a study conducted by the Philippine Institute for 
Development Studies (PIDS), the loan collection performance of farmer beneficiaries as 
of March 2015 is low at only 51.55% on principal and interest. The same study reports 
that despite the subsidy given to agrarian reform beneficiaries (ARBs), in terms of 
amortization subsidies, only 11% of the total 898,952 individual farmer accounts under 
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the Land Bank of the Philippines (LBP) have been fully paid, while a considerable number 
of accounts are in default.1  
The PIDS also reported that the bulk of ARBs (64%) fall under the “distributed, not 
yet paid” category, which means that the LBP has not been able to initiate amortization 
because of lack of documentation. Meanwhile, the amount collected annually is only 
around PhP1 billion, which represents only 0.03% of government revenues.2  
This default, the low productivity and income of the sector, and the increasing 
prices of farm inputs, food, and commodities result in a cycle of poverty among ARBs 
that warrants intervention from the State. In fact, according to the Philippine Statistics 
Authority (PSA), farmers posted the highest poverty incidence in 2018 at 31.6 percent.3 
In order to provide a needed lifeline to ARBS, this proposed measure seeks to 
emancipate ARBs from debt burden through the condonation of all unpaid principal and 
interests, including penalties or surcharges, if any, due from loans used for land 
acquisition secured under the Comprehensive Agrarian Reform Program. This is 
essential in addressing rural poverty and improving the lives of Filipino farmers.  
Thus, the passage of this measure is earnestly sought. 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
1
PIDS. Ballesteros, Ancheta, and Ramos. The Comprehensive Agrarian Reform Program after 30 Year: Accomplishments and 
Forward Options. Published in December 2017. Available at https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1734.pdf 
(Accessed on 4 November 2022). 
2
PIDS. Comments on House Bills for the Condonation of Land Amortization Liabilities of ARBs. Published on 10 October 2022. 
Available at https://pidswebs.pids.gov.ph/CDN/document/1666742808_63587a183f4d8.pdf (Accessed on 4 November 2022). 
3
PSA. Farmers, Fisherfolks, Individuals Residing in Rural Areas and Children Posted the Highest Poverty Incidences Among the 
Basic Sectors in 2018. Released on 3 June 2020. Available at https://psa.gov.ph/content/farmers-fisherfolks-individuals-residing-
rural-areas-and-children-posted-highest-poverty (Accessed on 4 November 2022). 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ___ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
AN ACT 
PROVIDING FOR THE CONDONATION OF ALL UNPAID PRINCIPAL 
INTERESTS, PENALTIES, OR SURCHARGES ON LOANS SECURED 
BY AGRARIAN REFORM BENEFICIARIES UNDER THE 
COMPREHENSIVE AGRARIAN REFORM PROGRAM  
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Condonation of Unpaid Amortizations, Interest Payments, 
Penalties, or Surcharges. – All unpaid principal and interests, including penalties or 
surcharges, if any, due from loans used for land acquisition secured under the 
Comprehensive Agrarian Reform Program are hereby condoned by the Government to 
relieve all agrarian reform beneficiaries from the payment thereof: Provided, That the 
condonation of such unpaid principal, interests, penalties, or surcharges shall be in 
conformity with the applicable banking laws and regulations of the Bangko Sentral ng 
Pilipinas (BSP): Provided, further, That upon the effectivity of this Act, the Land Bank of 
the Philippines (LBP) shall issue the certification necessary to facilitate the issuance of a 
certificate of land title ownership in favor of the agrarian reform beneficiary concerned: 
Provided, finally, That the condonation of all unpaid principal, interests, penalties, or 
surcharges shall release all attached liens and encumbrances arising from the loans 
secured for land acquisition. 
SEC. 2. Implementing Rules and Regulations. – Within thirty (30) days from the 
effectivity of this Act, the Department of Agrarian Reform (DAR), in coordination with the 
Philippine Agrarian Reform Council (PARC), the Department of Finance (DOF), and the 
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LBP, and upon consultation with relevant stakeholders, shall promulgate the necessary 
rules and regulations to effectively implement the provisions of this Act. 
 
SEC. 3. Repealing Clause. – Section 26 of Republic Act No. 6657, as amended, 
otherwise known as the “Comprehensive Agrarian Reform Law of 1988,” is hereby 
repealed. All other laws, decrees, orders, rules and regulations or parts thereof 
inconsistent with any of the provisions of this Act are hereby repealed, amended, or 
modified accordingly. 
 
SEC. 4. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in at least two (2) newspapers of general circulation. 
 
Approved,