%•;,) Senate
NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
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SENATE
S.B. No. 1 R60
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Introduced by SENATOR IMEE R. MARCOS
AN ACT
FULFILLING THE EMANCIPATION OF AGRARIAN REFORM 
BENEFICIARIES FROM THE DEBT BURDEN THROUGH THE SUBROGATION 
BY THE NATIONAL GOVERNMENT OF AGRARIAN REFORM BENEFICIARIES 
UNDER THE VOLUNTARY LAND TRANSFER AND DIRECT PAYMENT 
SCHEMES AND THE ASSUMPTION OF THEIR DEBTS THEREUNDER, TO
APPROPRIATE FUNDS THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The use of property bears a social function, and this is emphatically asserted in 
the paramount law. Article II, Section 21 of the 1987 Constitution states that, "the 
State shall promote comprehensive rural development and agrarian reform". Likewise, 
Article XIII, Section 4 provides that "the State shall, by law, undertake an agrarian 
reform program founded on the right of farmers and regular farmworkers who are 
landless, to own directly or collectively the lands they till or, in the case of other 
farmworkers, to receive a just share of the fruits thereof"
On 21 October 2022, the country will celebrate the fiftieth (50th) anniversary of 
Presidential Decree (P.D.) No. 27, making it the longest land reform program in history. 
P.D. No. 27 breaks down agricultural estates to a maximum of 7 hectares which is also 
acknowledged by R.A. No. 6657 otherwise known as the, "Comprehensive Agrarian 
Reform Law of 1988'.
From 2016 to 2022, the growth of the agricultural sector varied between -1.0% 
to 4.2%, posting negative growth in 2016, 2020 and 2021. The leading cause for low 
agricultural growth in the country lack of investment in the sector due to uncertainty 
in the status of agricultural lands.


The current law does not enable Agrarian Reform Beneficiaries (ARBs) to use 
the land as a collateral for bank loans for a period of ten (10) years, which give rise to 
the phenomenon of the "landed poor". This phenomenon result in the rise of informal 
lending channels that circumvent the law and result in farmers paying onerous interest 
on production loans, leaving them with little money to spend on improving their capital 
stock.
The imposition of this debt burden ignores the need to fully emancipate the 
Filipino farmer from the bondage of the soil. It implies that the Filipino Farmer, after 
being subjected to centuries of oppression, still has to pay a price for the land he has 
tilled. It degrades the Agrarian Reform Program as a mere installment purchase 
scheme. It loses sight of the social justice dimension of an authentic agrarian reform 
program: it is never a mere transfer of ownership of land subject to a monetary 
consideration; it is an emancipation transforming the serf to master.
Much emphasis has been given to the proposed condonation of the debts of the 
ARBs in relation to land acquired and distributed to them by the National Government 
through compulsory acquisition. However, it must be borne in mind that there are ARBs 
who opted to utilize the voluntary land transfer and direct payment schemes under R.A. 
No. 6657. These ARBs should not be treated differently from those who acquired land 
through the compulsory land acquisition process.
First, both the voluntary land transfer and the compulsory land acquisition 
schemes are means of land re-distribution sanctioned by R.A. No 6657. Second, both 
schemes impose debt burdens on the ARBs. Finally, ARBs under the voluntary land 
transfer scheme also face the same problems as other ARBs, especially those pertaining 
to the lack of capital and lack of collateral to obtain financing to invest on the awarded 
lands.
It is wholly unfair to emancipate one set of ARBs while leaving another set of 
ARBs still in shackles of the debt bondage simply because they chose to alleviate the 
burden on the National Government during the inception of the comprehensive agrarian 
reform program by opting for voluntary arrangements.
For these reasons, it is imperative that the ARBs under the voluntary land 
transfer scheme are accorded the same rights, privileges, and obligations as ARBs who 
acquired their land through the compulsory acquisition process.


Finally, the implementation of the Agrarian Reform Program cannot be seen as 
successful or complete until and unless adequate support services are given to the 
Agrarian Reform Beneficiaries (ARBs). Flowever, the support services available to ARBs 
under the current law are limited to land surveys, titling, access to credit, 
infrastructures, services related to Agrarian Reform bonds, research and education, and 
other similar forms of assistance. The agrarian reform law ignores support services 
which are directly needed and indispensable for the sustenance, dwelling, clothing, 
medical attendance, education, transportation, and other needs of the ARBs and their 
families. ARBs should be assisted by the State in ensuring that the needs of their 
families are immediately or simultaneously addressed as soon as the farmer or 
farmworker is enrolled under the program. There is reason to believe that a significant 
number of ARBs resorted to illegally leasing or selling their awarded lands to 
businessmen or to the original haciendero out of the desperate need to raise funds for 
the support of the family.
The call of the times is not to end the Agrarian Reform Program. The challenge 
of the times is to ensure its continuation as an integral component of our national 
development and social justice programs. We proceed to the full emancipation of the 
ARBs from the Agrarian Reform debt burden by condoning their loans due to unpaid 
land amortizations, as well as unpaid interests, fees and charges and other payables 
as a consequence of their ownership of the awarded lands thereby, protecting their 
rights and safeguarding their welfare at all times.
Given the abovementioned circumstances, the immediate passage of this bill is
necessary.
IMEE R. MARCOS


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23 JAN 12 P3 '29
NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
RFCEIVED bv.
SENATE
S.B. No. 1660
Introduced by SENATOR IMEE R. MARCOS
AN ACT
FULFILLING THE EMANCIPATION OF AGRARIAN REFORM 
BENEFICIARIES FROM THE DEBT BURDEN THROUGH THE SUBROGATION 
BY THE NATIONAL GOVERNMENT OF AGRARIAN REFORM BENEFICIARIES 
UNDER THE VOLUNTARY LAND TRANSFER AND DIRECT PAYMENT 
SCHEMES AND THE ASSUMPTION OF THEIR DEBTS THEREUNDER, TO 
APPROPRIATE FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
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SECTION 1. Short Title. - This shall be known as the "Assumption by the
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Government of Voluntary Land Transfer Debts Act."
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SEC. 2. Declaration of Policy. - It shall be the policy of the State to have
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equitable distribution of opportunities, income, and wealth to attain expanding national
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and local productivity that will act as the key to raising the quality of life for all. In
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relation to this, the present financial burden of Agrarian Reform Beneficiaries (ARBs)
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must be alleviated in order for them to focus their resources into increasing the
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productivity and improving the resiliency of their awarded lands. For this purpose, the
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State shall assume all existing financial obligations of ARBs under the voluntary land
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transfer (VLT) and direct payment (DP) schemes.
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Furthermore, the State recognizes that social justice is actualized not only when
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the landless farmer or farm worker becomes the owner of the land he or she tills but
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also when the landowner whose land has been acquired and distributed under the
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Comprehensive Agrarian Reform Program (CARP) is paid just compensation. Therefore,
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it is the policy of the State to ensure that landowners shall continue to be justly
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compensated for their lands.
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SEC. 3. Subrogation by the National Government and Assumption of Obligations 
Under VLT and DP. - The National Government shall subrogate the ARBs and shall 
assume their financial obligations to pay the value of the awarded land to the 
landowners acquired under the VLT and DP schemes, thereby amending Section 20 of 
Republic Act No. 6657, as amended. Payment of the remaining balance of the 
compensation due the concerned landowners, if any, shall be paid by the Government 
from the Agrarian Reform Fund through the LBP.
SEC. 4. Certificate of Assumption of Obligation. - Upon assumption by the 
National Government of the obligation of the ARB, the DAR shall issue a Certificate of 
Assumption of Obligation which shall be the basis for the Registry of Deeds to register 
the land in the name of the ARB or, in case the land is already registered in the name 
of the ARB, to lift the mortgage liens in favor of the landowner, if any.
SEC. 5. Inventory and Verification of the Outstanding Balances of ARBs under 
the VLT and DP Schemes. - The DAR, with the assistance of the Land Bank of the 
Philippines, shall conduct an inventory and verification of the outstanding balances of 
the ARBs under the VLT and DP schemes to prevent fraudulent claims, as well as to 
ensure that the National Government shall only assume principal and interest payments 
which have not yet prescribed.


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SEC. 6. Broadened Scope of Support Services to Agrarian Reform Beneficiaries 
under the CARP. - In addition to the support services available to the ARBs under 
Section 37 of R.A. No. 6657, as amended, the DAR, together with the Presidential 
Agrarian Reform Council (PARC), shall ensure that support services and assistance 
indispensable to agricultural productivity and resiliency, enterprise development, and 
financial literacy of the ARBs, as well as to the need for sustenance, dwelling, clothing, 
medical assistance, education, transportation, among others, of such beneficiaries and 
their families, shall be provided. Any form of support services rendered by any banking 
or financial institution for the benefit of the beneficiaries and their families shall be 
deemed a form of support under the Agrarian Reform Program thereby amending 
Section 37 of Republic Act No. 6657, as amended.
This Section is without prejudice to the support services available to ARBs from 
other National Government Agencies, and shall not be construed as alternative 
compliance to Republic Act No. 10000 otherwise known as the Agri-Agra Reform Credit 
Act of 2009.
SEC. 7. Preference to Credit Facilities and Support Services for Beneficiaries with 
Paid Amortizations. - ARBs who have completed payments for the land, as well as 
interest thereon, if any, under Section 21 of Republic Act No. 6657, as amended, and 
other agrarian reform laws shall be given preference in the provision of support services 
and access to credit facilities.
SEC. 8. Restitution of the Agrarian Reform Award Forfeited Solely due to Non- 
Payment of Purchase Price and Interest - Any pending administrative or judicial case 
involving the forfeiture by the landowner of the land subject to VLT or DP scheme due 
to the failure of the ARB to pay the purchase price thereof or any interest thereon shall 
immediately be dismissed motu proprio.


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The execution of a final and executory administrative or judicial case decision due 
to the failure of an ARB to pay aforesaid purchase price or interest, resulting in the 
disqualification of the ARB, the cancellation of the title registered in his name, the 
extinguishment of the rights of possession and ownership of the land, as well as the 
removal of the person from the land or the dismantling of any improvements found 
therein, shall be immediately terminated.
Any title cancelled as a result of the final and executory administrative or judicial 
case decision shall immediately be reconstituted. In the event that the agricultural land 
has already been awarded to another beneficiary or sold to another ARB under another 
land transfer or direct payment arrangement, the DAR shall, as far as equitable, award 
another land to the disqualified ARB.
In all cases, the National Government shall pay to the landowner the balance of 
the financial obligation of the ARB, as verified by DAR.
SEC. 9. Disqualification of Agrarian Reform Beneficiaries due to Acts and 
Omissions Constituting Violations of Agrarian Reform Laws. - Any person convicted by 
final judgment of any of the prohibited acts and omissions under Sec. 73 and meted 
any of the penalties under Sec. 74 of RA. No. 6657, as amended, is disqualified to avail 
of the benefits under this Act. Disqualification also results for any determination by final 
judgment that the ARB, in violation of Sec. 22 of R.A. No. 6657, as amended, willfully 
refused to make the awarded land as productive as possible or deliberately neglected 
or abandoned the awarded land continuously for a period of two (2) calendar years. 
Provided, That non-cultivation of the land due to non-installation of the ARBs, threats 
by other stakeholders or entities, lack of facilities and support services, or situations or 
conditions beyond the control of the ARBs not due to their fault or actuations shall not 
be considered as either neglect, abandonment, or grounds for disqualification.
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To this effect, the DAR shall thoroughly investigate and revalidate allegations 
that will constitute disqualification under this Section, in a manner that will be construed 
liberally in the favor of the ARBs.
SEC. 10. Right of the Landowner to Just Compensation. - It is indispensable 
that a landowner whose land has been subject to voluntary land transfer or direct 
payment scheme under CARP or other agrarian reform laws shall be entitled to just 
compensation from the Government as to the portion of the purchase price or interest 
that is still unpaid by the ARB. Nothing herein shall diminish the right of landowners to 
be justly compensated for their agricultural lands acquired under the said programs.
SEC. 11. Implementing Rules and Regulations. - The DAR, in coordination with 
the Executive Committee of the Presidential Agrarian Reform Council (PARC ExCom), 
with the technical assistance of the Land Bank of the Philippines (LBP), shall, within 
sixty (60) days from the effectivity of this Act, formulate the necessary Implementing 
Rules and Regulations.
SEC. 12. Agency Support. - All other government offices and agencies are 
directed to render such prompt and necessary assistance, subject to applicable laws, 
rules and regulations, to fully implement the provisions of this Act.
SEC. 13. Funding. - The amount necessary for the implementation of this Act 
shall be charged against the Agrarian Reform Fund, as certified by the Bureau of 
Treasury, and the inclusion thereof in the Annual General Appropriations Act shall be 
subject to the existing budgeting process, rules and regulations, and to such other 
funds as may subsequently be authorized by Congress.
SEC. 14. Repealing Clause. - All laws, executive orders, issuances or parts 
thereof inconsistent with the provisions of this Act are hereby amended, repealed or


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modified accordingly.
SEC. 15. Separability Clause. - If any provision of this Act is declared 
unconstitutional, the remainder of this Act or any provisions not affected thereby shall 
remain in full force and effect.
SEC. 16. Effectivity. - This Act shall take effect upon its publication in the Official 
Gazette or in a newspaper of general circulation.
Approved,