EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE
S. No.
2472
RECEIVED
E-FILED
r\A rr* January 5. 2022 m
U>A I U  -------—. 
• /A
01:20pm
SK-tS
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
TO PROMOTE INVESTMENTS IN AGRICULTURE BY 
EASING FARMLAND LANDHOLDING RESTRICTIONS AND 
RATIONALIZING LAND TRANSACTION PROCESSES
EXPLANATORY NOTE
Our agricultural sector suffers from inefficiency and productivity issues. These 
issues are present not because our farmers are lazy but rather because of the 
restrictions on farmlands as provided under the Comprehensive Agrarian Reform Law 
{Republic Act No. 6657) which impede the growth and development in the said sector. 
According to a study in 2019 by economists Tasso Adamopoulos and Diego Restuccia, 
our agrarian reform program resulted in land fragmentation, which reduced the 
productivity in agriculture by 17% and the share of landless individuals by 20%. These 
restrictions include the five-hectare retention limit {Section 6), non-transferability of 
the land within ten (10) years of issuance {Section 7), and thirty (30) annual 
amortizations by the beneficiaries {Section 26). The mentioned restrictions hinder land 
market operations as well as the introduction of new and alternative technologies and 
farming systems, reduce farmers' incentive to invest in land improvements, limit 
choice of contractual arrangements, and discourage younger generation of Filipinos 
to pursue farming or choose to work in the agricultural sector. Thus, the need to lift 
the same for a more efficient and productive use of the land.
Pursuant to the declared policy of the state to promote investments in 
agriculture and to encourage the establishment of economically viable enterprises in


the countryside, this bill seeks to (a) ease the restrictions on farm size and on 
agricultural land transactions (b) rationalize land transaction processes by upgrading 
of paper titles to electronic titles free of charge, which will remove bureaucratic delays 
created from the need for Department of Agrarian Reform (DAR) clearances in land 
transfers and (c) condone all unpaid land amortizations of agrarian reform 
beneficiaries and other charges.
In view of this, early passage of this bill is sought.
LITO" H. LAPID


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHIUPPINES ) 
Third Regular Session 
)
SENATE
S. No. 2472
, Jo’ flt Jx
NDb
SILLS
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
TO PROMOTE INVESTMENTS IN AGRICULTURE BY 
EASING FARMLAND LANDHOLDING RESTRICTIONS AND 
RATIONALIZING LAND TRANSACTION PROCESSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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Section 1. Short Title. - This Act may also be referred to as the "Agricultural 
Lands Easing Act of2022'.
Section 2. Declaration of Principles. - It is hereby declared the policy of the 
State to promote investments in agriculture and to encourage the establishment of 
economically viable enterprises in the countryside by easing farmland restrictions and 
rationalizing processes and procedures.
Section 3. Fee Simple Title. - Lands acquired by farmer-beneficiaries under any 
of the agrarian reform laws shall be considered as lands with fee simple title and thus 
may be sold, transferred, conveyed, mortgaged, leased, or entered into a partnership 
or usufruct agreements, at any time, with any person, natural or juridical, qualified to 
own or possess lands in the Philippines in accordance with existing laws.


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Section 4. Upgrading to Electronic Titles. - The Department of Agrarian Reform
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(DAR) and the Land Registration Authority (LRA) shail implement a program for the
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upgrading of paper tities heid by farmer-beneficiaries to electronic titles, free of
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charge. The appropriations necessary for the implementation of this Section shall be
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charged initially to existing funds of the DAR, and subsequently to the General
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Appropriations Act (GAA).
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Section 5. Landholdings' Ceiling Requirement. - Any sale, transfer or
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conveyance of agricultural lands shall be valid as long as the resulting total agricultural
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landholdings by the transferee do not exceed twenty-four (24) hectares.
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Section 6. Condonation of Unpaid Amortizations and Other Charges.-Ihe State
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hereby condones ali unpaid amortizations, interests thereon, penalties and surcharges
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owing or due to the government, obtained from the acquisition of lands awarded
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under the Comprehensive Agrarian Reform Law and other land reform legislations. All
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liens and encumbrances associated with agrarian reform land acquisition that are
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annotated in the Certificates of Title issued to farmer beneficiaries and its derivative
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titles are all cancelled by operation of law. It shall not be necessary for titles to be
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presented to the Registry of Deeds. No further action shail be required from farmer
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beneficiaries for the cancellation of such annotations.
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Section 7. Removal of DAR Clearances on Transfers of Ownership of Agricultural
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Lands. - Transferees of ownership of agricultural lands shall furnish the appropriate
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Registry of Deeds an affidavit attesting to the fact that his/her total agricultural
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landholdings, as a result of the said transfer, do not exceed twenty-four (24) hectares.
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Such transfers shall not require any clearance from the Department of Agrarian
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Reform (DAR) as a prerequisite for registration of transaction with the Register of
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Deeds. The transfer of ownership shall be immediately registered by the Registrar of
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Deeds if the resulting agricultural landholdings of the transferee, based on the
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electronic database of the Land Registration Authority (LRA), do not exceed 24
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hectares. If from the electronic records of the LRA, it appears that the transferee's
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landholdings exceed 24 hectares, his/her registration shall be denied and the


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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 24 hectares is only a namesake, the transferee 
shall be required to submit additional evidence with the Register of Deeds for 
verification of die transferee's identify within the prescribed processing time as may 
be provided in the implementing rules under Section 9 of this Act.
Section 8. Bank Mortgages. - Banks and non-bank financial institutions duly 
registered with the Bangko Sentral ng Pilipinas (BSP) and allowed by law to hold 
mortgage rights or security interests in agricultural lands to secure loans and other 
obligations of borrowers, may acquire title to these mortgaged properties upon 
foreclosure, subject to existing banking laws. These financial institutions shall not be 
subject to the landholding ceiling requirement under the preceding section subject to 
the provision of Section 52 of Republic Act No. 8791 or the General Banking Law on 
disposition of acquired asset within a period of five (5) years.
Section 9. Repurchase. - In case of mortgage foreclosure, the farmer- 
beneficiary or his/her heirs who are in actual occupation and cultivation of the land 
mortgaged shall have the right to repurchase within a period of two (2) years, after 
which said property acquired from any agrarian reform beneficiary may be transferred 
to any person, both natural and juridical, subject to the limitations of law.
Section 10. Farmer-beneficiary Information Campaign. - For the full 
dissemination of the features of this Act, as well as to allow farmer beneficiaries to 
avail of the services provided herein, the Department of Agrarian Reform (DAR) and 
local agrarian reform offices, in coordination with the Philippine Information Agency 
(PIA) and other appropriate government offices, shall conduct an information 
campaign to explain the provisions of this Act to farmer-beneficiaries.
Section 11. Penalties. - Any person who knowingly or willfully violated the 
provision of this Act shall be punished by imprisonment of not less than one (1) month 
to not more than three (3) years. If the offender is a corporation or association, the


officer responsible therefore shall be criminally liable.
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Section 12. Existing Notice of Coverage. - All existing Notice of Coverage upon 
the effectivity of this Act shall be respected and shall remain in full force and effect.
Section 13. Implementing Rules and Regulations. - The Department of Justice, 
through the Land Registration Authority (LRA), and the Department of Agrarian 
Reform (DAR), in coordination with Bangko Sentral ng Pilipinas (BSP) and the Land 
Bank of the Philippines (LBP) shall promulgate the necessary implementing rules and 
regulations within one hundred twenty (120) days upon the effectivity of this Act.
Section 14. Repealing Clause. - Sections 6, 27, and 70 of RA No. 6657. 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 15. 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 16. Effectivity Clause.-IHskctshaW take effect fifteen (15) days after 
its complete publication in the Official Gazette or in at least two (2) newspapers of 
general circulation.
Approved,