FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
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SENATE 
S. No. 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Still acclaimed as a centerpiece program of the government owing solely to the 
fact that our economy is primarily based on agriculture, the Comprehensive Agrarian 
Reform Program engaged in an ambitious but viable dream. It focused not totally on 
equitable ownership of land but on an improved quality of life so as to bring right at the 
doorstep of the agrarian reform beneficiaries the amenities and conveniences of modem 
living and integrate them in the mainstream of a progressive society not as social and 
economic burden. 
Much has been gained in agrarian reform as the march of progress in the 
countryside has gone far, wide and sophisticated. But its avowed objective is still yet to 
be completed. Still lingering in the equitable redistribution aspect in the ownership of 
agricultural lands is the resistance of influential entrepreneuring owners who are able to 
elude, or, at least delay, the effects of agrarian reform despite the comprehensiveness of 
its character and thrusts. 
Reinvigorated by the bright beginnings and prospect upon the restoration of 
popular authority in 1985, we, in 1988, embarked on a massive agrarian reform program, 
infusing therein an amount, an initial of P50 Billion to ensure its workability, foreseeing 
the constraints to confront with in a democratic setting. Time-lined for ten years, the 
projection fell short and, within the enshrined constitutional objective of agrarian reform 
and rural development, Congress enacted Republic Act No. 8532, entitled “An Act 
Strengthening Further the Comprehensive Agrarian Reform Program (CARP), by 
providing Augmentation Fund Therefor, Amending for the purpose Section 63 of 
Republic Act No. 6657, otherwise known as “the CARP Law of 1988.” 


The actual implementation of the Program, however, did not turn out to be that 
simple. And the shortfalls that it encountered were primarily owing to the failed 
perception on the degree of resistance that emanated from a natural human reaction 
adverse to change. Nonetheless, there is no reason to falter. The program survived 
because it is a constitutional mandate. 
Parenthetically, noted was the difficulty of the fanner beneficiaries in the 
availment of credit loans facilities needed in their farming activities as to be assured of 
greater production, for want of collateral or standby guaranties. 
The acquisition and distribution component of the program is yet to be completed 
and the development and or transformation of the farmer beneficiaries toward making 
them competitive in the prevailing socio-economic milieu still requires guidance, 
especially financial assistance, that there is the urgent need for an additional period to 
complete and firm the dichotomy of objectives of the program towards realizing the 
envisioned dignified existence of farmers as reliable and capable partners in the shaping 
of a stronger republic. 


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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
First Regular Session 
OF THE PHILIPPINES 
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S. No. "%I1 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
STRENGTHENING THE COMPREHENSIVE AGRARIAN REFORM PROGRAM 
(CARP), 
AMENDING REPUBLIC ACT NO. 6657, ALSO KNOWN AS THE 
COMPREHENSIVE AGRARIAN REFORM LAW OF 1988, SECTIONS 37 AND 63. 
Be it enacted by the Senate and House of Representative of the Philippines in 
Congress assembled: 
SECTION 1. Section 37 of Republic Act No. 6657, also known as the 
Comprehensive Agrarian Reform Law of 1988, on Support Services to the Beneficiaries, 
is hereby amended to read as follows" 
"SECTION 37. Support Services to the Beneficiaries. - The PARC shall ensure 
that support services to farmer beneficiaries are provided such as: 
(a) Land surveys and titling; 
(b) Liberalized terms on credit facilities and production loans. FOR THE 
PURPOSE, ALL FINANCING INSTITUTIONS SHALL ACCEPT AS 
COLLATERAL 
FOR 
LOANS, 
ANY 
DULY 
REGISTERED 
EMANCIPATION PATENTS (EP) OR ECRTFICATE OF LAND 
OWNERSHIF' 
AWARD 
(CLOA), 
WHETHER 
INDIVIDUAL 
OR 
COLLECTIVE, ISSUED BY THE GOVERNMENT THROUGH THE 
DEPARTMENT 
OF 
AGRARIAN 
REFORM, 
TO 
FARMER 
BENEFICIARIES OF AGRARIAN REFORM IN 
AN 
AMOUNT 
CONSISTENT WITH EXISTING FINANCING PRACTICES, OR IN LIEU 
THEREOF, ESPECIALLY WITH RESPECT TO AGRICULTURAL 
LEASEHOLD HOLDERS, ANY MARKET OR PURCHASE ORDER 
AND/OR 
EXPECTED 
HARVEST, 
SUPPORTED BY 
A 
DULY 
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REGISTERED 
AGRICULTURAL 
LEASEHOLD 
CONTRACT; 
PROVIDED, THAT WHERE THERE IS FAILURE OF REPAYMENT A m  
FORECLOSURE SUPERVENES, THE PROPERTY MORTGAGED 
SHALL FORTWITH BE TRANSFERRE3D TO THE DAR FOR 
REDISTRIBUTION TO OTHER SIMILARLY QUALIFIED FARMER 
BENEFICIARIES, 
PROVIDED 
FURTHER 
THAT 
THE 
LOANS 
OBTAINED SHALL BE USED IN THE LMPROVEMENT OR 
DEVELOPMENT OF THE FARMHOLDWG OF THE FARMER- 
BENEFICIARY OR THE ESTABLISHMENT OF FACILITIES THAT 
WILL 
ENHANCE 
PRODUCTION 
OR 
MARKETING 
OF 
AGRICULTURAL PRODUCTS OR 
INCREASE FARM 
INCOME 
THEREFROM; AND, PROVIDED FINALLY, THAT THE BENEFICIARY 
WHOSE LANDS, AS PROVIDED HEREIN, HAS BEEN FORECLOSED 
SHALL PERMANENTLY BE DISQUALIFIED FROM BECOMING A 
BENEFICIARY UNDER THIS ACT: 
(c) Extension services by way of planting, cropping, production and post-harvest 
technology transfer, as well as marketing and management assistance and 
support to cooperatives and farmers organization. 
(d) Infrastructure such as access trails, mini-dams, public utilities, marketing and 
storage facilities; and 
(e) Research, production and use of organic fertilizers and other local substances 
necessary in farming and cultivation. 
The PARC shall formulate policies to ensure that support services to farmer- 
beneficiaries shall be provided at all stages of land reform.” 
SECTION 2. Section 63 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988, as amended by republic Act No. 8532, is 
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hereby further amended to read as follows: 
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“SECTION 63. Funding Source. - The initial amount needed to implement this 
Act until the year 2018, or an additional period of ten (10) years from the expiration of its 
period under the amendatory Republic Act No. 8532, shall be funded from the Agrarian 
Reform Fund. 
Additional amounts necessary for this purpose are hereby authorized to be 
appropriated in excess of the previous initial and augmentation funds, amounting to One 
Hundred Billion Pesos (P 100,000,000,000.00). 
The additional initial amount hereby authorized to be appropriated hereunder shall 
in no case exceed One Hundred Sixty Two Billion pesos (P 162,000,000,000.00) 
Sources of funding or appropriation shall include the following: 
(a) Proceeds of the sales of the Assets Privatization Trust (APT); 
(b) All receipts from assets recovered and from sales of ill-gotten wealth 
recovered through the Presidential Commission on Good Government 
(PCGG); 
(c) Proceeds of the disposition of the properties of the government in foreign 
countries, for the specific purpose of financing production credits, 
infrastructure and other support services required by this Act; 
(d) All income and collections of whatever kind and nature arising from the 
agrarian reform operations, projects and programs of the DRA and other 
implementing agencies of the Comprehensive Agrarian Reform Program; 
(e) Portion of amounts accruing to the Philippines from all sources of official 
foreign aid grants, debt, swaps and concessional financing from all countries, 
to be used for the specific purposes of financing, production, credit, 
infrastructures, and other support services required by this Act; 
(f) Yearly 
appropriations 
of 
not 
less 
than 
Three 
Billion 
Pesos 
(P3,000,000,000.00) from the General Appropriations Act; 
(g) Other government funds not otherwise appropriated.” 
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accordingly. 
SECTION 3. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation contrary to 
or inconsistent with the provisions of this Act is hereby repealed, modified or amended 
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SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved, 
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