1 
NINETEENTH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
Land is an important factor of production in agriculture and land fragmentation has 
significantly reduced agricultural productivity. Data from the Philippine Statistics Authority 
shows that there is a decrease in farm sizes from an average size of 3.61 hectares (ha) 
in 1971 to 1.3 ha in 2012.1 In 2019, Economists Tasso Adamopoulos and Diego Restuccia 
found that the Philippine government’s agrarian reform program has resulted in land 
fragmentation reducing average farm size by 34%, agricultural productivity by 17%, and 
share of landless individuals by 20%.2 
The current restrictions on farmlands under the Republic Act No. 6557 or the 
Comprehensive Agrarian Reform Law (CARL), the five-hectare limit on land ownership have 
effectively discouraged efficient rural land market operations and eroded the value and 
collateral value of awarded lands. These reduce the farmers’ incentive to invest in land 
improvements, limiting the choice of more efficient contractual arrangements. Thus, decades 
into the government’s land reform program have only created a new class of people: the 
“landed poor.” 
Economies of scale dictate that there is a great advantage in the operation of larger 
farmlands as the cost per unit of output decreases with the increase in farmland area. 
Larger farms will allow farmers to introduce new and alternative technologies and farming 
systems. It will also encourage younger Filipinos to go into farming thereby introducing 
new blood in our already aging farmer population. 
According to a 2021 study by agricultural economist Keijiro Otsuka, due to the rapid 
population growth and partly due to the inadequate growth of non-farm sectors that are able 
to absorb rural labor, farm size reduced significantly. The efficiency of the agriculture sector 
can be a stumbling block to economic growth should farm size continue to decline and the 
economy sustains a fairly high growth rate.3  
To effectively address land fragmentation, which has led to a decline in 
agricultural productivity and persistent poverty in the sector, there is a need to ease 
restrictions on farm size, remove restrictions on agricultural land transactions, and promote 
a vigorous rural land market. 
The objective of this proposed measure is to enhance agricultural productivity, foster 
a dynamic land market, and elevate the socioeconomic status of Filipino farmers by fully 
allowing them to determine the highest and best use of their land, and to utilize such lands 
unencumbered by unnecessary bureaucratic regulations. 
In view of the foregoing, the passage of this bill is earnestly sought. 
RUFUS B. RODRIGUEZ 
1 PSA Census of Agriculture 1971, 1980, 1991, 2002; PSA Census of Agriculture and Fisheries 2012; Censo de 1903 
2 Adamopoulos, T. & Restuccia, D. (2019). Land Reform and Productivity: A Quantitative Analysis with Micro Data. National 
Bureau of Economic Research. http://www.nber.org/papers/w25780 
3 Otsuka, K. (2021). Changing Relationship between Farm Size and Productivity and Its Implications for Philippine Agriculture. 
Discussion paper No. 2102. https://www.econ.kobe-u.ac.jp/wp/wp- content/uploads/2023/07/DP2102.pdf
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2 
NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
TO INCREASE FARM PRODUCTIVITY BY REDUCING LAND FRAGMENTATION 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Declaration of Policy. – It is hereby declared the policy of the State to support 
the increase in farmland productivity by reducing land fragmentation to allow the 
establishment of more efficient and economically-scaled agricultural lands. It is also the policy 
of the State to rationalize land conversion for the effective management of land resources. 
SECTION 2. Landholdings’ Ceiling Requirement. – Any sale, transfer or conveyance of 
agricultural lands shall be valid as long as the resulting total agricultural landholdings by the 
transferee do not exceed twenty-four (24) hectares. For publicly-listed corporations 
engaged in the business of agriculture and agroforestry, total landholdings shall not exceed 
one thousand twenty-four (1,024) hectares. 
SECTION 3. Removal of DAR Clearances on Transfers of Ownership of Agricultural Lands. 
– Transferees of ownership of agricultural lands shall furnish the appropriate Registry of
Deeds (ROD) an affidavit attesting to the fact that his/her total agricultural landholdings, as
a result of the said transfer, do not exceed the landholding ceiling requirement provided
under this Act. The transfer of ownership shall be immediately registered by the ROD if the
resulting agricultural landholdings of the transferee do not exceed the ceiling requirement
provided under this Act, based on the database of the LRA.
If from the records of the LRA it appears that the transferee’s landholdings exceed 
the ceiling requirement provided under this Act, his/her registration shall be denied and the 
transferee shall be notified of said fact and shall be provided with the list of the properties that is 
registered in his/her name. If the transferee claims that the person who has a landholding 
in excess of the ceiling requirement provided in this Act is only a namesake, the transferee 
shall be required to submit additional evidence with the ROD for verification of the 
transferee’s identity within a reasonable time. 
SECTION 4. Land Reclassification. Approval for land conversion of agricultural land for 
non-agricultural use by the DAR is no longer necessary. The function of classifying 
lands for land use purposes shall be within the jurisdiction of the local government unit 
(LGU) as provided by the Republic Act (RA) No. 7160 or Local Government Code of 
1991. 
When reclassification of agricultural land to non-agricultural land is required for the 
investment projects approved by the National Economic and Development Authority Board, 
such approval shall not be unreasonably withheld. Failure to act on a proper and complete 
application for reclassification within three (3) months from receipt of the same shall be deemed 
as approval thereof. 
SECTION 5. Penalty for Violation of this Act. – Any person who knowingly or willfully 
violated the provision of this Act shall be punished by imprisonment of not less than six (6) 
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months to not more than three (3) years or a fine of not less than Fifty Thousand Pesos 
(Php 50,000) and not more than One Hundred Fifty Thousand Pesos (Php 150,000) or both 
at the discretion of the Court. If the offender is a corporation or association, the officer 
responsible therefore shall be criminally liable. 
 
SECTION 6. Existing Notice of Coverage. – All existing Notice of Coverage upon the effectivity 
of this act shall be effective for a period of one year. If no acquisition is made within this period, 
these agricultural lands will be automatically released from this burden, lien, or encumbrance 
and may be freely transacted by the owner subject only to the limitations provided under 
this law.  
 
SECTION 7. Implementing Guidelines. - The Land Registration Authority (LRA) and the 
Department of Agrarian Reform shall promulgate the necessary internal implementing 
guidelines for their agencies within ninety (90) days upon the effectivity of this Act. 
 
SECTION 8. Repealing Clause. – Sections 6, 27, 65, 70 and 73 of RA No. 6657; Sections 
4, 22 and 24 of RA No. 9700; all laws, decrees, orders, rules and regulations or parts thereof 
inconsistent with any provision of this Act are hereby repealed, amended or modified 
accordingly. 
 
SECTION 9. Separability Clause. - If, for any reason, any provision of this Act or any part 
thereof be declared unconstitutional and invalid, the other parts or provisions of this Act not 
affected thereby shall remain in full force and effect. 
 
SECTION 10. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
 
 
Approved,