FOURTEENTH CONGRESS OF THE 
Republic of the Philippines 
Fimt Regular Session 
SENATE 
ill..**_ 
bL.6. 
I_. 
I .(” 
Senate Bill No. 
i 
Introduced by Honorable SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Hailed as a centerpiece program for development, the Comprehensive Agrarian 
Reform Program (CARP) remains a potent and powerful promise that however, is yet to 
be completely fulfilled in the Philippine democratic system. 
The CARP was supposed to pave the way for the country’s aspirations for 
sustainable economic development and industrialization by infusing fresh capital, 
infrastructure and lasting peace into agricultural areas. No less than the Supreme Court 
in the case of Association of Small Landowners in the Philippines, Inc. vs. Secretary of 
Agrarian Reform, 175 SCRA 343., in defending constitutionality of the Comprehensive 
Agrarian Reform Law, envisioned that through agrarian reform, the farmer at last “will 
be released not only fiom want but also from the eXpoitaoon and disdain of the past 
and firm feelings of inadequacy and he@lessness; the farm will be his/her portion of 
Mother Earth that will give not on& the staff of life but also the joy of livhg’: Hence, 
the CARP is unique in that it seeks to both correct centuries of social injustices and at 
the same time usher in genuine economic development. The relationship between 
agricultural and countryside development as brought about by efficient agrarian reform 
and the modernization and industrialization of a nation cannot be gainsaid and has 
been proven many times over by the experiences of, many countries. 
Twenty years after it was first enacted into law, the Program once again is facing 
an impending end to its funding allocation in the national budget in 2008, despite the 
fact that CARP is far from complete. According to the Department of Agrarian Reform 
(DAR), 1.3 Million hectares of the most productive private agricultural lands still have 
not been covered by the program as of 2006. Major policy reversals on agrarian reform 
threaten the program’s future and undermine many of its gains. The roots of the 
problem can be traced to the government‘s failure to put the required institutional, 
fiscal and infrastructural support; compounded by DAR’s inefficiency and corruption. 
The CARP, as a Constitutional mandate, cannot end with the lapse of the 
implementing law. Ending the implementation of the CARP without completing the 
acquisition and distribution of lands covered by the program will result in the anomalous 
situation where persons still own big landholdings in excess of what the Constitution 
deems equitable. Furthermore, as a necessary consequence to the Constitutional 
mandate for agrarian reform, a continuous appropriation for support services and 
agrarian justice delivery must be in place even after the land acquisition and distribution 
program. 
1 


This bill seeks to accelerate the implementation of the Land Acquisition and 
Distribution (LAD) component of the CARP and complete once and for all this most 
urgent part of the Program which promises to usher the country into to industrialization 
and modernization similar to the development path taken by many of our neighbors - 
Japan, South Korea, Taiwan and Vietnam. 
With the objectives of national development and social justice in mind, the bill 
requests that the government automatically set aside a small 3.8% of the annual 
national budget to finally complete the LAD component within the next seven (7) years. 
In this same period, seventy percent (70%) will be allocated to justly compensate 
affected private landowners so that they can invest their money in industries needed to 
process raw materials and to strengthen the market; while the remaining thirty percent 
(30%) will be used to provide credit assistance and other support services to the farmer 
beneficiaries to enable them to be entrepreneurs and agri-businessmen. 
Moreover, learning from the lessons gleaned from two decades worth of CARP 
implementation, this bill introduces measures to address the loopholes of the law in 
order for the implementing agencies to accomplish the Constitutional mandate. The bill 
seeks to strengthen credit and support service delivery, provide secure titles to agrarian 
reform beneficiaries, ensure actual, physical distribution and possession of lands; to 
pursue the reorganization of the DAR for better performance and more farmer 
participation. It also seeks to improve and strengthen the policies that frame the 
program to bring emphasis to the fact that the CARP, is foremost a social justice 
program which seeks to remedy the effects and consequences of a n unjust and 
iniquitous past which for generations have favored the few but powerful over the many 
but weak. 
We must also not ignore the many successes of the CARP. Studies show that the 
Program, in many parts of the country, has improved the lives of farmers and their 
households; freed millions from hunger and destitution; brought peace to the 
countryside; sent more children to schools; developed and modernized agricultural 
lands; built and paved more roads, warehouses and post harvest facilities; provided 
credit and technical assistance to the rural areas. If completed, CARP will be able to lift 
from poverty and hunger an additional 1.7 million Filipinos, mostly from the rural areas, 
and facilitate the increase of the middle class. With an enlarged middle class, 
businesses will grow, politics will become more modern and the economy will be in 
better shape for all Filipinos in the 21* century. 
With the impending end to CARP funding in 2008, it is incumbent upon this 
Congress to claim its place in history now, by passing this bill with urgency and 
enthusiasm. By accelerating the completion of LAD, continuing to provide credit and 
support services to its beneficiaries, and by boldly addressing much-needed policy 
issues and implementation problems of the CARP, it will be remembered as heroic 
champions of agrarian reform, social justice, and national development. 
Thus, the passage of this bill is earnestly sought. 
Senator 
2 


FOURTEENTH CONGRESS OF THE 
First Regular Session 
Republic of the Philippines 
1
9
 
. .- 
+JF''' 
3'( . _ *  - 
SENATE 
\l%:Lt 
Senate Bill No. 
Introduced by Honorable SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
ACCELERATING THE COMPLETION OF THE LAND ACQUISITION AND 
DISTRIBUTION COMPONENT OF THE COMPREHENSIVE AGRARIAN REFORM 
PROGRAM (CARP), 
BY PROVIDING AUTOMATIC APPROPRIATION THEREOF, AND ADDRESSING 
MAJOR IMPLEMENTATION PROBLEMS OF THE PROGRAM, AMENDING FOR 
THE PURPOSE REPUBLIC ACT NO. 6657, AS AMENOED, OTHERWISE KNOWN' 
AS "THE CARP LAW OF 1988 
AND EXECUTIVE ORDER 129, AS AMENDED. 
Be it enacted by the Senate and House of Representatives of the Phi/@pines in 
Congress assembled: 
I. 
STATE POLICY 
SECTION 1. Section 2 of Republic Act 6657, otherwise known as the 
"SECTION 2. Declaration of Principles and Policies. -- It is the policy of the 
State to pursue a Comprehensive Agrarian Reform Program (CARP) throuah 
its inherent Dowers of eminent domain, Dolice Dower and taxation. The 
welfare of the landless men and women farmers, farm workers, and all other 
aualified farmer-beneficiaries as provided under Section 22 of RA 6657 will 
receive the highest consideration to promote social justice and to move the 
nation toward sound rural development and industrialization, and the 
establishment of owner cultivatorship of economic-sized farms as the basis of 
Philippine agriculture. 
"To this end, a more equitable distribution and ownership of land, with due 
regard to the rights of landowners to just compensation and to the ecological 
needs of the nation, shall be undertaken to provide men and women farmers, 
farm workers, and all other aualified beneficiaries with the opportunity to 
enhance their dignity and improve the quality of their lives through greater 
productivity of agricultural lands. The State shall discourage agricultural lands 
remain idle and unproductive. 
"The agrarian reform program is founded on the right of men and women 
farmers, farmworkers, and all other aualified beneficiaries, who are landless, 
to own directly or collectively the lands they till or, in the case of other farm 
Comprehensive Agrarian Reform Law, is hereby amended to read as follows: 


workers, to receive a share of the fruits thereof. To this end, the State shall 
ensure the direct and Dhvsical distribution of all agricultural lands, subject to 
the priorities and retention limits set forth in this Act, having taken into 
account ecological, developmental, and equity considerations, and subject to 
the payment of just compensation. The State shall respect the right of smali 
landowners, and shall provide incentives for voluntary land-sharing. The State 
shall Drohibit non-distributive schemes of aararian reform like Stock 
Distribution ODtion and Leaseback where control over the acauired land is 
channeled back to biq landowners because these schemes are disemoowerinq 
and disadvantaqeous to the farmer beneficiaries of the Droaram. 
The State shall ensure Drimatv land transfer to beneficiaries Drior to any 
neaotiations for Joint Venture Aareement and other similar arranaements." 
"The State shall include a leasehold Droaram to alleviate and Drotect the 
welfare of those beneficiaries who cannot own the land thev till. However, 
the State shall consider the leasehold Droqram to be transitorv while the 
State ensures that landless beneficiaries will be qiven land of his own to till." 
"The State shall recognize the right of men and women farmers, farm 
workers, and all other aualified beneficiaries and landowners, as well as 
cooperatives and other independent farmers organization, to participate in 
the planning, organization, and management of the program, and shall 
provide support to agriculture through appropriate technology and research, 
and adequate financial, production, marketing and other support services. 
"The State shall recoqnize and enforce the riaht of rural women to own and 
control land or to receive a just share of the fruits thereof. representation in 
advisory or appropriate decision-making bodies .and ensure the substantive 
eauality between men and women as aualified beneficiaries. Rural women's 
entitlement to the land is essential not only to the attainment of individual 
riahts. self-emowerment, and economic survival of their families but also to 
the over-all rural develoDment. democratization and food security of the 
nation. 
"The State shall apply the principles of agrarian reform, or stewardship, 
whenever applicable, in accordance with law, in the disposition or utilization 
of other natural resources, including lands of the public domain, under lease 
or concession, suitable to agriculture, subject to prior rights, homestead 
rights of small settlers and the rights of indigenous communities to their 
ancestral lands. 
"The State may resettle landless farmers, farm workers, rural women and 
qualified beneficiaries in its own agricultural estates, which shall be 
distributed to them in the manner provided by law. 
"By means of appropriate incentives, the State shall encourage the formation 
and maintenance of economic-sized family farms to be constituted by 
individual beneficiaries and small landowners. 
"The State shall protect the rights of subsistence fishermen, especially of local 
communities, to the preferential use of communal marine and fishing 
resources, both inland and offshore. It shall provide support to such 
fishermen through appropriate technology and research, adequate financial, 
4 


production and marketing assistance and other services, The State shall also 
protect, develop and conserve such resources. The protection shall extend to 
offshore fishing grounds of subsistence fisherfolk against foreign intrusion, 
Fisherfolk shall receive a just share from their labor in the utilization of 
marine and fishing resources. 
“The State shall be guided by the principles that land has a social function 
and land ownership has a social responsibility. Owners of agricultural land 
have the obligation to cultivate directly or through labor administration the 
lands they own and thereby make the land productive. 
“The State shall provide incentives to landowners to invest the proceeds of 
the agrarian reform program to promote industrialization, employment and 
privatization of public sector enterprises. Financial instruments used as 
payment for lands shall contain features that shall enhance negotiability and 
acceptability in the marketplace. 
“The State may lease undeveloped lands of the public domain to qualified 
entities for the development of capital-intensive farms, traditional and 
pioneering crops especially those for exports subject to the prior rights of the 
beneficiaries under this Act.“ 
11. DEFINITION OF TERMS 
SECTION 2. Definition of Terms - 
a. Agrarian Reform is the direct and ohvsical redistribution of lands, 
regardless of crops or fruits produced, to men and women farmers and 
regular farmworkers and all other aualified beneficiaries who are landless, 
irrespective of tenurial arrangement, to include the totality of factors and 
support services designed to lift the economic status of the beneficiaries. 
b. Agricultural Lands are lands actually devoted to agricultural activity or 
suitable for aariculture activity. 
c. All other aualified beneficiaries of the Aararian Reform Proaram 
*
’
 
seasonal farm workers. other farm workers. actual tillers or occuoants of 
private and Public lands, collective or cooperatives of the above beneficiaries, 
and others directly workina on the land. 
d. Actual and Phvsical Distribution of Aaricultural Lands refers to the 
awardina of the CLOA or E
P
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peaceful and effective utilization or cultivation bv the beneficiary of the land 
for any aaricultural activity. 
e. & 
reoroductive labor, enaaged either directly or indirectly in farmina and/or 
fishing as their source of livelihood, whether oaid or unDaid, reaular or 
seasonal. Reoroductive labor refers to acts Derformed by rural women 
household, carina for the children, etc. -- 
5 


111. RETENTION LIMITS 
SECTION 3. Section 6 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988 is hereby amended to read as follows: 
'Section 6. Retention Limits - Except as otherwise provided in this Act, no 
person may own or retain, directly or indirectly, any public or private agricultural 
land, the size of which shall vary according to factors governing a viable family- 
sized farm, such as commodity produced, terrain, infrastructure, and soil fertility 
as determined by the Presidential Agrarian Reform Council (PARC) created 
hereunder, but in no case shall retention by the landowner exceed five (5)" 
hectares. Three (3) hectares may be awarded to each child of the landowner, 
subject to the following qualifications: (1) that he 
is at least fifteen (15) 
years of age as of 15 June 1988; (2) that he or she is actuallv residina in the 
baranaav and/or municiDalitv where the land is situated; and (3) that he & 
is actually tilling the land or directly managing the farm and the latter is 
her main occupation; provided that a child of the landowner shall not be 
considered a Dreferred beneficiarv when the land covered is tenanted; Drovided 
further that landowners whose lands have been covered by Presidential Decree 
No. 27 shall be allowed to keep the area originally retained by them thereunder; 
provided finallv that original homestead grantees or direct compulsory heirs who 
still own the original homestead at the time of the approval of this Act shall 
retain the same areas as long as they continue to cultivate said homestead. 
"The DAR determines, motu DroDio, the landowner's retention area within 
sixtv 1601 davs from the Dostina of the notice of coveraae: provided that in case 
the area selected for retention by the landowner is tenanted, the tenant shall 
have the option to choose whether to remain therein or be a beneficiary in the 
same or another agricultural land with similar or comparable features. In case 
the tenant chooses to remain in the retained area, he shall be considered a 
leaseholder and shall lose his right to be a beneficiary under this Act. In case 
the tenant chooses to be a beneficiary in another agricultural land, he loses his 
right as a leaseholder to the land retained by the landowner. The tenant must 
exercise this option within a period of one (1) year from the time the landowner 
manifests his choice of the area for retention. 
"In all cases, the security of tenure of the farmers or farm workers or 
"Upon the effectivity of this Act, any sale, disposition, lease, management 
contract or transfer of possession of private lands executed by the original 
landowner in violation of this Act shall be null and void; Provided however that 
those executed prior to this Act shall be valid only when registered with the 
Register of Deeds within a period of three (3) months after the effectivity of this 
Act. Thereafter, all Registers of Deeds shall inform the DAR within thirty (30) 
days of any transaction involving agricultural lands in excess of five (5) hectares. 
tenants on the land prior to the approval of this Act shall be respected. 
T
S
A 
issued for distribution to agrarian reform beneficiaries." 
6 


IV. JUST COMPENSATION 
SECTION 4. Section 17 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988, is hereby amended to read as follows: 
“Section 17. Determination of Just Compensation -- In determining just 
compensation, the cost of acquisition of the land, includina the visible crops 
planted bv the former landowner at the time of valuation, the current value of 
like aqricultural properties reaardless of potential or future use, its nature, actual 
use and income, the sworn valuation by the owner, the tax declarations, and the 
assessment made by the government assessors shall be considered on the date 
of receipt by the landowner or the last dav of oostina or publication in at least 
twof2) national newspaper of the notice of coveraae issued bv the DAR, 
whichever is earlier. 
The visible crops if considered as Dart of the value of the land shall be 
valuated only once. In no case shall the determination of the valuation of the 
standinq croos be used to hinder the installation of ARBS. 
The social and economic benefits contributed by the farmers and the 
farmworkers and by the Government to the property as well as the non-payment 
of taxes or loan secured from any government financing institution on the said 
land shall be considered as additional factors to determine its valuation.” 
V. LAND DISTRIBUTION AND RELATED MAlTERS 
SECTION 5. Direct and Phvsical Distribution of Land -- Aararian Reform 
covered lands shall be distributed physically and directly to agrarian reform 
beneficiaries. Stock Distribution Option. Leaseback and other non-distributive schemes 
and aareement of land distribution shall be prohibited. 
Landholdinas covered bv existing non-distributive schemes and agreements shall 
be reviewed by the Department for the purpose of direct and ohvsical distribution to the 
farmer beneficiaries. All aararian reform covered lands under a non-distributive scheme 
or aareement shall be distributed to the farmer beneficiaries not later than one (1) Year 
from the effectivitv of this law. Pendina applications before the Department for non- 
distributed immediately. 
~ 
SECTION 6. 
exists when the followinq reauisites are present: (1) The parties are the landowner and 
the tenant or agricultural lessee: (2) The subject of the relationship is an aaricultural 
land based on actual use and in accordance with the Dolicy of RA 3844: (3) There is 
consent between the parties to the relationshio; (4) The Duroose of the relationship is 
to brina about aoricultural production: (5) There is personal cultivation on the Dart of 
the tenant or aaricultural lessee; (6) The harvest is shared between the landowner and 
p 
The reauisite of consent between the parties mav be imdied. Implied consent 
may include but not limited to the followina acts: 1. Payment by the alleged tenant of 
landowner’s share to the landowner or his or her aaent: 2. Inclusion in the Lista Saka; 
3. Acauiescence by the landowner to the open and continuous cultivation of the farmers 
or his or her successors. Written consent is not reauired to show actual or imdied 
7 


consent. 
SECTION 7. ADDrOVal of Voluntarv Land Transfer -- Voluntarv Land 
Transfer arrangements shall be strictly reviewed and monitored by the PARC to ensure 
that onlv aualified beneficiaries shall benefit from the Aararian Reform Proaram. All 
Voluntarv Land Transfer arranaements shall be subiect to the auDroval of the PARC. 
SECTION 8. Section 24 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988, is hereby amended to read as follows: 
"Section 24. Award to Beneficiaries - The rights and responsibilities of the 
beneficiary shall commence from the time the DAR makes an award of the land. 
Such award shall be completed within one hundred eighty (180) days from the 
time the DAR takes actual possession of the land. Ownership of the beneficiary 
shall be evidenced by a Certificate of Land Ownership Award, which shall contain 
the restrictions and conditions provided for in this Act, and shall be recorded in 
the Register of Deeds concerned and annotated on the Certificate of Title. The 
CLOA and other titles issued under any aararian reform program shall be 
indefeasible and imDrescriDtible after one (1) vear from its registration with the 
Office of the Reaistrv of Deeds. 
All cases involvina the cancellation of reaistered CLOAs and other titles 
~ 
jurisdiction of the DARAB. 
SECTION 9. Tax on Idle Lands and Bia Landholdinas. An additional ten 
(
shall be imDosed to private landholdinas. 
An additional twentv (20) Dercent of the Real ProDertv tax shall be imoosed on 
private aaricultural lands that remain idle and unproductive for three (3) consecutive 
years from notice that it is idle and unDroductive. 
The above shall be assessed and collected annually bv the Local Government 
Units. If the said land still remains idle and UnDroductive then the LGU will exoropriate 
it. deductina all the unpaid real DroDertv taxes due and the Denalties and other 
encumbrance on the said land and award it to landless farmers. farmworkers or other 
aualified beneficiaries. 
VI. PAYMENTS BY BENEFICIARIES 
SECTION 10. Section 26 of Republic Act No. 6657, otherwise known as the 
"Section 26. Payments by the Beneficiaries - Lands awarded pursuant to 
this Act shall be paid for by the beneficiaries to the LBP in thirty (30) annual 
amortizations at six percent (6Yo) interest per annum. The annual amortization 
shall start one vear from the date of the actual. Deaceful, Dhvsical, and 
continuous Dossession of the awarded land bv the beneficiaries. The payments 
for the first three (3) years after the said actual, peaceful, physical, and 
continuous Dossession shall be at reduced amounts as established by the PARC: 
provided that the first five (5) annual payments may not be more than (5%) 
percent of the value of the annual gross production as established by the DAR. 
Comprehensive Agrarian Reform Law of 1988, is hereby amended to read as follows: 
8 


Should the scheduled annual payments after the fifth year exceed ten percent 
(10%) of the annual gross production and the failure to produce accordingly is 
not due to the beneficiary's fault, the LBP &&I reduce the interest rate and/or 
reduce the principal obligations to make the repayment affordable. 
"The LBP shall have a lien by way of mortgage on the land awarded to 
beneficiary and this mortgage may be foreclosed by the LBP for non-payment of 
an aggregate of three (3) annual amortizations. The LBP shall advise the DAR of 
such proceedings and the latter shall subsequently award the forfeited 
landholding to other qualified beneficiaries. A beneficiary whose land as provided 
herein has been foreclosed shall thereafter be permanently disqualified from 
becoming a beneficiary under this Act." 
VII. TRANSFER OF LANDS 
SECTION 11. Section 27 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988, is hereby amended to read as follows: 
"Section 27. Lands acquired by beneficiaries under this ACT 
other aararian reform/distribution laws may not be sold, transferred or conveyed 
except through hereditary succession, or to the government, or to the LBP, or to 
other qualified beneficiaries throuah the DAR for a Deriod of thirtv (30) Years; 
Provided however, That the children or the spouse of the transferor shall have a 
right to repurchase the land from the government of LBP within a period of two 
(2) years thereafter. Due notice of the availability of the land shall be given by 
the LBP to the Barangay Agrarian Reform Committee (BARC) of the barangay 
where the land is situated. 
The Provincial Agrarian Reform Coordinating 
committee (PARCCOM) shall in turn be given due notice thereof by the BARC. 
"The title of the land awarded under the Aararian Reform must indicate 
that it is an EP or CLOA and subseauent transfer title must also indicate that it is 
an EP or CLOA." 
"If the land has not yet been fully paid by the beneficiary, the rights to the 
land may be transferred or conveyed, with prior approval of the DAR, to any heir 
of the beneficiary or to any other beneficiary who as a condition for such transfer. 
or conveyance, shall cultivate the land himself. Failing compliance herewith, the 
land shall be transferred to the LBP which shall give due notice of the availability 
of the land in the manner specified in the immediately preceding paragraph, 
"In the event of such transfer to the LBP, the latter shall compensate the 
beneficiary in one lump sum for the amounts the latter has already paid, 
together with the value of improvements he has made on the land." 
VIII. CREDIT AND OTHER SUPPORT SERVICES 
SECTION 12. Support Services. Section 36 of Republic Act No. 6657, 
otherwise known as the Comprehensive Agrarian Reform Law of 1988, is hereby 
amended to read as follows: 
"In order to cover the expenses and cost of support services, thlrh/ 
percent (30%) of all aDDroDriations for agrarian reform shall be immediatelv set 
9 


aside and made available for this purpose: Provided, that one-third (l/3) of this 
aooropriation shall be specificallv allocated for subsidies to S U D D O ~ ~  
the initial 
capitalization for aaricultural production upon the awardina of the EP or CLOA to 
a new aararian reform beneficiarv and subsidized credit facilities in the case of 
existina ARBs includina the leaseholders; Provided further that the Land Bank 
and other concerned Government Financial Institutions shall provide the facilities 
for disbursement of the above financial assistance to the ARBs. In addition, the 
DAR shall be authorized to package proposals and receive grants, aid and other 
forms of financial assistance from any source. 
After the completion of the land acauisition and distribution component of 
CARP, the vearlv aoprooriation shall be allocated fullv to S U D ~ O ~ ~  
services and 
aararian justice deliverv. 
SECTION 13. Gender ResDonsive S u ~ ~ o r t  
Services -- The Department 
must aive increased access and consideration to the needs of the women farmer 
beneficiaries in Drovidina S U D D O ~ ~  
services until such time that the S U D D O ~ ~  
services are 
eauallv available to both men and women. The Department shall ensure that the 
support services extended to women farmer beneficiaries integrates her needs and 
well-beincl. 
IX. REORGANIZING THE DEPARTMENT OF AGRARIAN REFORM'S 
ORGANIZATIONAL STRUCTURE AND FUNCTIONS 
SECTION 14. Reorganizing the DAR -- The Department of Aararian Reform 
[DAR) shall be reoraanized bv an inter-agency committee consistina of Department of 
Budaet Manaaement (DBM). Civil Service Commission (CSC). and the DAR, subiect to 
consider completion of LAD. strenathened aararian justice deliverv (AID). increasing 
S U D P O ~ ~  
services. converaence approach. and intearated staff services; provided that 
regional, provincial and municioal offices shall also be restructured to reflect actual 
& 
approved within six f6) months after amroval of this Act. 
The DAR shall accelerate its Land Acauisition and Distribution (LAD) function. In 
particular. the DAR shall increase its annual Land Acauisition and Distribution {LAD] 
target to not less than 200,000 hectares for a period of seven 17) vears from the 
enactment of this Act. Provided, that the DAR shall prioritize the Compulsory Acauisition 
LCA) and distribution of larae private aaricultural lands. For this Durpose, Executive 
Order (EO) 129-A is herebv amended. 
X. LAND CONVERSION 
SECTION 15. Section 65 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988, is hereby amended to read as follows: 
"Section 65. Conversion of lands. When the land ceases to be 
economically feasible and sound for agricultural purposes, or the locality has 
become urbanized and the land will have greater economic value for residential, 
commercial or industrial purposes, the DAR, upon application of the beneficiary 
or anv other landowner, with due notice to the affected parties, and subject to 
existing laws, may authorize the reclassification or conversion of the land and its 


disposition: Provided, that if the aDDlicant is a beneficiarv under aararian laws 
portion thereof, it must be shown that: (1) at least thirtv (301 vears have lamed 
from its award: and (2) the beneficiary shall have fully paid his obligation. 
Provided further, that irriaated and irriaable lands, regardless of fundin'g 
commitment for irriaation, shall not be subiect to conversion notwithstandina its 
classification. { 
"Failure to imdement the conversion Dlan within five (51 vears from the 
apwoval of such conversion Dlan, shall cause the land to automaticallv be 
covered bv CARP." 
XI. QUASI-JUDICIAL POWERS OF THE DAR 
SECTION 16. Section 50 of Republic Act No. 6657, otherwise known as the 
"Section 50. Quasi-Juudiciai Powers of the DAR. - The DAR is hereby vested 
with primary jurisdiction to determine and adjudicate agrarian reform matters 
and shall have exclusive original jurisdiction over all matters involving the 
implementation of agrarian reform, except those falling under the exclusive 
jurisdiction of the Department of Agricultural (DA) and the Department of 
Environment and Natural Resources (DENR). 
"It shall not be bound by technical rules of procedure and evidence but 
shall proceed to hear and decide all cases, disputes or controversies in a most 
expeditious manner, employing all reasonable means to ascertain the facts of 
every case in accordance with equity and the merits of the case. Toward this 
end, it shall adopt a uniform rule of procedure to achieve a just, expeditious and 
inexpensive determination of every action or proceeding before it. 
"It shall have the power to summon witnesses, administer oaths, take 
testimony, require submission of reports, compel the production of books and 
documents and answers to interrogatories and issue subpoena, and subpoena 
duces tecum and to enforce its writs through sheriffs or other duly deputized 
officers. It shall likewise have the power to punish direct and indirect contempt in 
the same manner and subject to the same penalties as provided in the Rules of 
court. 
Comprehensive Agrarian Reform Law of 1988, is hereby amended to read as follows: 
"Responsible farmer leaders shall be allowed to represent themselves, 
their fellow farmers/farm workers or their organizations in any proceedings 
before the DAR: Provided, however, that when there are two or move 
representatives for any individual or group, the representatives should choose 
only one among themselves to represent such pat-ty or group before any DAR 
proceedings. 
and the SuDreme Court, the decision of the DAR shall be immediately executory." 
"Notwithstanding an appeal to the Regional Trial Court, Court of Appeals 
XII. AGRARIAN JUSTICE DELIVERY 
SECTION 17. Strengthening the DARAB -- The DARAB shall be cornoosed of 
the Secretary as Chairman. Three 131 Undersecretaries or Assistant Secretaries as may 
11 


be desiqnated 
- 
bv the Secretarv, and eiaht 18) others to be aDDointed bv the President. 
SECTION 18. Legal Standing and Interest of Farmer Beneficiarv and 
their Associations -- Aararian reform beneficiaries or identified beneficiaries and/or 
their Associations mav file a case or cases before iudicial courts concernina their 
individual or collective riahts under the Comorehensive Agrarian Reform Program. 
The fact of non-reaistration of such association/s before the Securitv and 
Exchanae Commission or Cooperative DeveloDment Authority or anv concerned 
aovernment aaencv may not be used aaainst them to deny the existence of their leaal 
standinq and interest in a case filed before the iudicial courts. 
Identified and aDproved aararian reform beneficiaries, based on section 22 of RA 
6657, shall have usufructuarv riahts over the awarded land and such riaht shall not be 
diminished even Dending the awardina of the CLOA. 
SECTION 19. Reoresentation -A 
counsel de officio or a Daraleaal shall be 
appointed bv the DAR to represent a litiaant farmer. farm worker or tenant not 
represented by a lawyer, a Daraleaal, or a farmer-leader reDresentative. 
SECTION 20. Lanauaae -The 
Darties or their reDresentatives and the 
witnesses shall be allowed to testify or DarticiDate in the Droceedinas or submit 
communitv. 
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SECTION 21. Exclusive Jurisdiction on Aararian Related DisDute -- Nu 
court shall take coanizance of cases Dertaining to the imDlementation of the 
parties is a farmer. farmworker or tenant, shall be automaticallv referred to the DAR if 
there is an allegation from anv of the Darties that the case is aararian in nature, unless 
it is clear from the comolaint that the case is aararian in nature, in which case the court 
shall motu mob0 dismiss the case. Upon referral of a case by a reqular court or the 
conclusive uDon the reaular court or Drosecutor, and the court or prosecutor shall 
thereafter dismiss the case on the basis of such findinas of the DAR. 
SECTION 22. Aararian Reform Harassment Cases -- 
No iudqe of the 
reaional and trial court or anv other tribunal shall take coanizance of eiectment, estafa, 
aualified theft, and other similar cases filed aaainst an agrarian reform beneficiary, a 
farmer. farmworker or a tenant, the resolution of which reauires the Drior determination 
proper Jurisdiction of the DAR or the DARAB. or where such cases are filed to harass or 
remove the said aararian reform beneficiarv. farmer, farmworker or tenant. Upon filinq 
of anv such case, such iudae of anv court or tribunal or Drosecutor shall refer the same 
to the division or Provincial Aclrarian Reform Adiudicator (PARAD) for determination of 
tenancv relations or adjudication of anv aararian disDute between the Darties. Only 
umn certification issued bv the PARAD that the case is not acrrarian in nature, can the 
judge or Drosecutor Droceed with the case. No warrant of arrest shall be issued Dending 
the certification from the PARAD that the case is not agrarian reform related. 
The DAR shall render free leaal remesentation for agrarian reform beneficiary, 
farmer, farmworker or tenant who are facina aararian reform related criminal cases." 
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SECTION 23. Section 55 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988, is hereby amended to read as follows: 
"Section. 55. No Restraining Order or Preliminary Injunction. No court in 
the Philippines shall have jurisdiction to issue any restraining order or writ of 
preliminary injunction against the PARC, N R ,  or any duly authorized or 
designated agencies in any case, dispute or controversy arising from, necessary 
to, or in connection with the application, implementation, enforcement, or 
interpretation of this Act and other pertinent laws on agrarian reform." 
SECTION 24. Section 68 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988 is hereby amended to read as follows: 
"Sec. 68. Immunity of Government Agencies from Undue Interference. - 
No injunction, restraining order, prohibition or mandamus shall be issued by the 
Court of ADDeals, Reaional Trial Courts, MuniciDal Trial Courts, Municioal Circuit 
Trial Courts. Metropolitan Trial Courts.against the DAR, the DA, the DENR and 
the DOJ in the implementation of this program. 
Justices and iudaes who violate this Drovision and section 55 of RA 6657 
shall be administrativelv liable." 
XIII. FUNDING SOURCE 
SECTION 25. Section 63 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988, as amended, is hereby amended to read 
as follows: 
"The amount hereby authorized to be aDDroDriated shall be eauivalent to 
no less than 3.8% of the total national budaet of every vear beainnincl the vear 
2008 and which shall be initially released on June 15, 2008 , which amount shall 
not be less than Thirtv Eiaht Billion Pesos (Pho 38.000.000,000~ and shall be 
automaticallv aDDroDriated in the annual general approoriation: Drovided that 
seventv Dercent 170%) of the Yearly aDDroDriation shall be allocated to land 
acauisition. distribution and ComDensation which shall be fullv comdeted bv 
2015: Upon completion of Land Acauisition and Distribution. the vearly 
aDprooriation shall be allocated fullv to S U D D O ~ ~  
services and aararian justice 
delivety. 
"Sources of additional funding or appropriations for the Agrarian reform 
Fund (ARF) shall include the following: 
1. Proceeds of the sales of the Assets Privatization Trust; 
2. All receipts from assets recovered and from sales of ill-gotten wealth 
recovered through the Presidential Commission on Good Government; 
3. Proceeds of the disposition of the properties of the Philippine Government in 
foreign countries; 
4. All income and collections arising from agrarian reform operations, projects 
and programs of CARP implementing agencies; 
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5. Portion of amounts accruina to the PhiliDDines from all sources of official 
foreicln aid arants and concessional financincl from all countries, and other forms 
of financina arranaements. neaatiated bv the Philitmines Government with other 
countries and financial institutions; and 
6. Ten oercent (10%) of the annual qross income of PAGCOR and PCSO.“ 
XIV. PROHIBITED ACTS AND OMISSIONS 
SECTION 26. Section 73 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988 is hereby amended to read as follows: 
“Section 73. ProhibitedActs and Orni3s”ons. -The following are prohibited: 
(a) The ownership or possession, for the purpose of circumventing the 
provisions of this Act, of agricultural lands in excess of the total retention limits 
or award ceilings by any person, natural or juridical, except those under 
collective ownership by farmer-beneficiaries. 
(b) The forcible entry or illegal detainer by persons who are not qualified 
beneficiaries under this Act to avail themselves of the rights and benefits of the 
Agrarian Reform Program; 
(c) 
AnJ! conversion by any landowner of his agricultural land into non- 
agricultural use to avoid the application of this act to his landholdings and to 
dispossess his tenant farmers or the land tilled by them; 
(d) AnJ! prevention or obstruction by any person, association or entity of the 
implementation of the CARP; 
(e) The sale, transfer, conveyance or change of the nature of lands outside of 
urban centers and city limits either in whole or in part after the effectivity of this 
Act. The date of the registration of the deed of conveyance in the Register of 
Deeds with respect to titled lands and the date of the issuance of the tax 
declaration to the transferee of the property with respect to unregistered lands, 
as the case may be, shall be conclusive for the purpose of this Act; 
(9 The sale, transfer or conveyance by a beneficiary of the right to use or any 
other usufructuary right over the land he acquired by virtue of being a 
beneficiary, in order to circumvent the provisions of this Act.” 
W. PENALTIES 
SECTION 27. Section 74 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988 is hereby amended to read as follows: 
“Sec 74, RA 6657: Penalties.--Any person who knowingly or willfully 
violates the provisions of this Act shall be punished by imprisonment of not less 
than one (1) month to not more than three (3) years or a fine of not less than 
one thousand pesos (P1,OOO.OO) 
and not more than fifteen thousand pesos 
(P15,000.00), or both, at the discretion of the court. Provided that any Derson 
who violates Section 73 Paraaraph (E), in relation to Section 4 ParaaraDh 6 shall 
be Dunished bv imprisonment of six 16) vears and one (1) dav to twelve vears 
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and/or a fine of one hundred thousand Desos (PHP 100.000~ to five hundred 
thousand Desos (Php 500, 000) or both at the discretion of the court. Provided 
further that the landowner or his or her aaent commits the act describe in 
Section 73 DaraQraDh (D) shall be punished bv imwisonment of twentv (20) 
years and/or a fine of one million Desos (Pho 1,000,000~ at the discretion of the 
court. 
"If the offender is a corporation or association, the officer responsible 
therefore shall be criminally liable. In addition, any person convicted under this 
Act shall not be entitled to any benefit under any agrarian reform program." 
XVI. INTER-AGENCY COMMITTEES 
SECTION 28. Creation of Inter-Aaencv Committee on SUDDort Services 
-- An inter-aaencv committee on S U D D O ~ ~  
services is herebv created. For this DurDose, 
Section 35 (Creation of SUDDO~~ 
Services Office) of RA 6657 is herebv amended to 
include the followin% 
"An inter-aaencv committee comDosed of six 16) aovernment aaencies 
includina the Department of Aararian Reform (DAR). the Deoartment of 
Bank of the PhiliDDineS, National Irriaation Administration (NIA), Cooperative 
DeveloDment Authoritv [CDA) and the DeDartment of Trade and Industrv [DTQ 
shall be created to olan, imlement and monitor all S U D D O ~ ~  
service undertakinas 
in coordination with local stakeholders. The said committee shall be headed bv 
the DeDartment of Aararian Reform (DAR). Provided. that the DAR shall onlv 
provide aeneral and coordinative sup~ort to the aforementioned inter-aaencv. 
Provided further, that DAR Dersonnel shall be retained, removed. or realigned for 
this Durpose subiect to the imDlementation of a reoraanization plan." 
"The Land Bank of the Philimines and other government financial 
institutions, such as OUEDANCOR. shall undertake the imDlementation of 
proarams that aim to Drovide ARBs areater access to credit. Provided, that 
government shall ensure the Drovision of sufficient budaet for the Droduction 
credit reauirements of the ARBs. Provided further, that such loans shall remain 
collateral-free, interest rates shall be concessional or below market rates, and 
that lendina reauirements shall be relaxed." 
"The Department of Aararian Reform (DAR) shall coordinate the planninq, 
imdementation. and monitorina of all aararian reform-related Foreian-Assisted 
Proiects (FAPs). Provided. that soecialized units. such as the Foreian-Assisted 
Proiects Office fFAPs0). are herebv abolished. Provided further, that all 
personnel from the FAPsO shall either be its staff shall either be removed or 
realianed to other offices within the DAR. Provided much further, that its 
functions shall be transferred to the DAR-SO and other concerned offices within 
the DAR. Provided finallv. that DAR Dersonnel shall be retained. removed, or 
realianed for this DurDose subiect to the implementation of a reoraanization 
plan." 
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monitorina of all social infrastructure CaDabilitv buildina Droarams for the ARBs, 
Provided that. there shall be no duDlication of functions between the BANE and. 
the BARBD under the DAR. Provided further. that DAR Dersonnel shall be 
15 


retained, removed, or realianed for this purpose subiect to the implementation of 
a reoraanization plan." 
"The Department of Aariculture (DA), in coordination with the DAR, shall 
implement other support service functions like aovernment subsidies for the use 
of irriaation facilities. farm inputs, farm machineries, Drice sup~ort and guarantee 
for all aqricultural produce, research and develooment. etC." 
"The NIA, DPWH, and DA, in coordination with the DAR, shall implement 
rural infrastructure Droiects such as irriaation facilities, farm-to-market roads, 
and post-harvest facilities in all aararian reform areas." 
"The CDA, in coordination with the DAR, shall promote cooDerative as a 
wav of life in aararian reform areas. The CDA shall provide farmer beneficiaries 
assistance in oraanizina their cooperatives. 
"The DTI, in coordination with the DAR, shall Drovide aeneral market 
information and S U D D O ~ ~  
as well as aaro-industrial Drospects to Drovide ARBS 
market access and timely information and to help facilitate rural industrialization 
in CARP-covered areas and dismantle marketina cartels." 
"Local Government Units (LGUs), in coordination with local DAR offices, 
shall provide extension services to the ARES." 
"The budaet for these transferred tasks would be provided bv the 
aaencies mentioned and should be on too of the current budgetaw allocation for 
DAR's LAD and suoport service activities." 
XVII. CARP ACCOMPLISHMENT VALIDATION 
SECTION 29. Validation of CARP ScoDe and Accomolishments -- CARP 
scope shall be validated on an annual basis startina on June 15. 2008. 
A CARP Validation Team shall be created and shall be COmDOSed of the 
Secretarv of the Department of Aararian Reform, two representatives from the 
Presidential Aararian Reform Committee. a remesentative from an oraanization 6f 
aararian reform beneficiaries at the provincial level and an Aararian Reform non- 
governmental oraanization operating in the said Drovince. 
Further, the Department of Agrarian Reform's CARP accomDlishment reports bv 
province shall be validated bv the oraanized aqrarian reform beneficiaries toaether with 
their partner non-aovemment oraanizations in the CorresDondina province. Only duly 
validated reDorts of the DAR will be submitted to the Oversiaht Committee. 
The Presidential Agrarian Reform Committee (PARC) shall not amrove the 
DAR's CARP scope validation and accomtdishment reports at the national level unless 
thev are endorsed in writina bv national-level agrarian reform and rural develotment 
coalitions. 
The CARP Validation Team shall be provided with the necessaw funds to carrv 
out its duties. 
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XVIII. OVERSIGHT COMMIWEE 
SECTION 30. Oversiqht Committee -- An oversiqht committee is herebv 
created composed of three (3) rewesentatives each from the Senate and the House of 
12) representatives each from aaencies involved in the Droaram, to further strenathen 
-oaram. 
The committee shall elect 
their chairoerson and shall meet once every year to submit a report to the Senate and 
the House of Representatives on their evaluation as to the Derformance of the aararian 
reform Droaram. 
The oversiqht committee shall be Drovided with the necessaw funds to carry 
out its duties. 
XVIII. FINAL PROVISIONS 
SECTION 31. Repealina Clause. - All acts, ordinances, administrative orders. 
and other issuances inconsistent with this Act or any Dart thereof is hereby reDealed. 
SECTION 32. SeDarabilitv Clause. - If for any reason, any section or 
provision of this Act is declared null and void. no other section Drovision or Dart thereof 
shall be affected and the same shall remain in full force and effect. 
SECTION 33. Effectivitv Clause. -This Act shall take effect fifteen (15) davs 
after its Dublication in at least two f2) newsDauers of cleneral circulation. 
Approved, 
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