FOURTEENTH CONGRESS OF THE REPUBLIC) 
1 
8 
JAN 10 PTi:I:ii 
OF THE PHILIPPINES 
First Regular Session 
1 
~~ 
” ;:’:@@:-. 
S E N A T E  
S. B. No. 
1 
Introduced by SENATOR GREGORIO B. HONASAN I1 
EXPLANATORY NOTE 
Recognizing as a “centerpiece” program of the government, agrarian 
reform derives validity from basic principles enshrined in the 1987 
Constitution. 
It is a social justice program with wonderful socio- 
economic and socio-political perspectives. 
Pursuant to Republic Act No. 8532, the guaranteed funding support 
provided for the further implementation of the Comprehensive Agrarian 
Reform Program, shall expire in the year 2008, however, its major 
programs: Acquisition and distribution of private and public agricultural 
lands; support services; and delivery of agrarian justice are yet to be 
completed. 
The June 2007 statistics submitted by the Department of Agrarian 
Reform (DAR) indicates that the Department has accomplished 3.67 
million hectares or 74% of its 4.97 million hectares’ 
land acquisition 
and distribution (LAD) scope, thereby leaving a balance of 1.3 million 
hectares (all agricultural private lands) or 26% of the scope. 
The 
Department of Environment and Natural Resources (DENR) has 
accomplished 3.09 million hectares or 80% of its program LAD scope of 
3.84 million hectares, thereby leaving balance of 750,000 hectares or 
20% of its scope. 
The Department of Agrarian Reform estimates that, with three-fourths of 
land acquisition and distribution scope accomplished, it will need 48 
percent of its budget in the next 10 years for program beneficiaries’ 
development, 5 percent for agrarian justice delivery, and 47 percent for 
land tenure improvement. 
The CARP is a continuing program. The 10-year periods provided in 
Republic Act No. 6657 and Republic Act No. 8532, respectively, 
particularly its land acquisition and distribution activities were only time 
fmmes intended to speed up the program implementation and to set a 
timetable for guaranteed program funding needed to further accomplish 
the said program goals. A time frame is important in creating a sense of 
urgency because the world’s experience clearly indicates that agrarian 
reform carried out rapidly is more beneficial than one that is drawn out 
as it removes uncertainties in regard to land not yet covered and hence 
clarifies investment risks. 


Hence, this proposed bill seeks to further amend Section 63 of Republic 
Act No. 6657, as amended by Republic Act No. 8532, to ensure that the 
CARP shall be funded “more seriously and generously” for the next three 
(3) years. 
It also intends to strengthen its support services to the beneficiaries by 
increasing the flow of production credit to the countryside for further 
agricultural development 
to raise farmers’ incomes and increase the 
contribution of the rural economy towards national growth by amending 
Section 37 thereof.. 
Further, it seeks to give impetus to Section 5, Article XIII, of the 
Constitution by amending Section 7 on Priorities thereof to stress the 
importance of giving priority to working with farmers’ organizations in 
implementing the program. 
Finally, inasmuch as the implementation of the so-called stock 
distribution option in almost than a dozen corporate farms pursuant to 
Sections 29 to 34 of the CARL law has not led to an improvement in the 
life of agrarian reform beneficiaries as compared to those whose lands 
were covered by compulsory acquisition, these Sections are sought to be 
repealed. 
All corporate farms shall be covered under compulsory 
acquisition of Section 16 thereof. 
Considering its urgency, the immediate ena 
legislation into law is earnestly sought. 


FOURTEENTH CONGRESS OF THE REPUB LIC ] 
OF THE PHILIPPINES 
1 
First Regular Session 
I 
S. B. No. 194 
Introduced by SENATOR GREGORIO B. HONASAN I1 
“AN ACT 
STRENGTHENING THE COMPREHENSIVE AGRARIAN REFORM PROGRAM 
(CARP), 
AMENDING FOR THE PURPOSE SECTIONS 7 AND 37 AND 
FURTHER AMENDING SECTION 63, AND REPEALING SECTIONS 29, 30, 
31, 32, 33 AND 34 OF REPUBLIC ACT NO. 6657, OTHERWISE KNOWN AS 
“THE 
COMPREHENSIVE AGRARIAN 
REFORM LAW OF 
1988,” AS 
AMENDED, AND APPROPRIATING FUNDS THEREFOR” 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1 
I Section 7, paragraph 7, Chapter 11, on Priorities of Republic 
Act No. 6657 is hereby amended to read as follows: 
“The schedule of 
acquisition and redistribution of all 
agricultural lands 
covered by this program shall be made in 
accordance with the above order of 
priority, which shall be 
provided in the implementing rules to be prepared by the 
Presidential 
Agrarian 
Reform 
Council 
(PARC), taking 
into 
consideration the , 
following: 
THE NECESSITY OF GIVING 
PRIORITY TO COVERING LANDHOLDINGS WHEREIN THE 
FARMERS ARE ORGANIZED AND UNDERSTAND THE MEANING 
AND OBLIGATIONS OF FARMLAND 
OWNERSHIP; the need to 
distribute lands to the tillers at the earliest practicable time; the 
need to enhance agricultural productivity; and the availability of 
funds and resources to implement and support the program; 
PROVIDED, THAT LAND ACQUISITION AND REDISTRIBUTION 
SHALL BE COMPLETED WITHIN THREE (3) 
YEARS FROM THE 
EFFECTIVITY OF THIS ACT.” 
SEC. 
2. Section 37, Chapter IX of Republic Act No. 6657 is hereby 
amended to read as follows: 
1 


“Section 37. Support Services to the AGRARIAN REFORM 
Beneficiaries. - The PARC shall ensure that support services to 
[farmer-] AGRARIAN REFORM 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 THE 
PURCHASE ORDERS, MARKETING AGREEMENTS OR 
EXPECTED 
HARVESTS; 
PROVIDED, 
THAT LOANS 
OBTAINED SHALL BE USED IN THE IMPROVEMENT OR 
DEVELOPMENT OF THE FARMHOLDING OF THE ARB OR 
THE ESTABLISHMENT OF FACILITIES WHICH SHALL 
ENHANCE 
PRODUCTION 
OR 
MARKETING 
OR 
AGRICULTURAL 
PRODUCTS 
OR 
INCREASE 
FARM 
INCOME THEREFROM. 
TOWARD THIS END, THERE IS HEREBY CREATED 
A 
GUARANTEE 
FUND 
FOR 
AGRARIAN 
REFORM 
BENEFICIARIES’ PRODUCTION CREDIT IN THE AMOUNT 
OF TEN BILLION PESOS (P10,000,000,000.00) WHICH 
SHALL BE MANAGED AND ADMINISTERED BY THE LAND 
BANK OF THE PHILIPPINES (LBP). AN INITIAL AMOUNT 
OF FIVE BILLION PESOS (P5, 000,000,000.00) SHALL BE 
SOURCED AND ESTABLISHED WITHIN NINETY (90) DAYS 
UPON THE EFFECTIVITY OF THIS ACT, FROM FIFTY 
PERCENT (50%) OF THE TOTAL FUNDING ALLOCATION 
OF 
THE 
COMPREHENSIVE 
AGRARIAN 
REFORM 
PROGRAM-CREDIT 
GUARANTEE 
FUND 
FOR 
PROCEEDS OF THE SALES OF THE PRIVATIZATION 
MANAGEMENT OFFICE (PMO), RECEIPTS FROM ASSETS 
RECOVERED 
THROUGH 
THE 
PRESIDENTIAL 
COMMISSION ON GOOD GOVERNMENT (PCGG), AND A 
PORTION OF THE ALLOCATION FOR SUPPORT SERVICES 
UNDER SECTION 36 OF REPUBLIC ACT NO. 6657. OTHER 
SOURCES OF FUNDING OR APPROPRIATIONS SHALL 
INCLUDE THE FOLLOWING: 
AGRICULTURAL 
LANDOWNERS 
(CARP-CGFAL), 
RECOVERED AND FROM SALES OF ILL-GOTTEN WEALTH 
(1) PROCEEDS OF THE AGRI-AGRA REFORM 
BONDS TO BE ISSUED BY THE DEPARTMENT OF 
FINANCE 
(DOF) AND 
GUARANTEED 
BY 
THE 
REPUBLIC OF THE PHILIPPINES; PROVIDED, THAT 
THE DOF, IN COORDINATION WITH THE DAR, MAY 
INCREASE OR DECREASE THE AMOUNT OF THE 
GUARANTEE FUND IN ACCORDANCE WITH THE 
TOTAL LEVEL OF UTILITY AND DEMAND FOR 
CREDIT; 
PROVIDED, 
FURTHER, 
THAT 
ONE 
PERCENT (1%) OF THE TOTAL LOANABLE FUNDS 
OF 
ALL 
PUBLIC 
AND 
PRIVATE 
BANKING 
INSTITUTIONS UNDER THE TEN PERCENT (10%) 
AGRARIAN REFORM CREDIT IN SECTION 3 OF 
PRESIDENTIAL DECREE (P.D.) NO. 717 (AGRI-AGRA 
LAW) 
SHALL 
BE 
INVESTED 
EXCLUSIVELY, 
WITHOUT 
ANY 
ALTERNATIVE 
MODE 
OF 
2 


COMPLIANCE, FOR THE PURCHASE OF AGRI-AGRA 
REFORM BONDS; PROVIDED, FURTHER, THAT THE 
DOF SHALL DETERMINE AND FIX THE FEATURES 
OF 
THE 
AGRI-AGRA 
REFORM 
BONDS 
COMPETITIVE 
WITH 
EXISTING 
BONDS 
AND 
SECURITIES IN DOMESTIC MARKET CIRCULATION; 
PROVIDED, FINALLY, THAT THE BANGKO SENTRAL 
NG PILIPINAS (BSP) SHALL DRAFT THE INCENTIVE 
PROGRAM TO ENCOURAGE ALL PUBLIC AND 
PRIVATE BANKING INSTITUTIONS TO PURCHASE 
SUCH BONDS; AND 
(2) OTHER 
GOVERNMENT 
FUNDS 
NOT 
OTHERWISE APPROPRIATED. 
(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’ organizations; 
(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 for farming and 
cultivation. 
The PARC shall formulate policies to ensure that 
support services to [farmer-] AGRARIAN REFORM 
beneficiaries shall be provided at all stages of [land 
reform] THE PROGRAM IMPLEMENTATION.” 
xxxxxxxxx 
xxxxxxxxx 
xxx xxx xxx.” 
SEC. 3. Section 63, Chapter XIV of Republic Act No. 6657, as amended 
by Republic Act No. 8532, is hereby further amended to read as follows: 
“Section 63. 
Funding Source. - The amount needed to 
FURTHER 
implement 
[this Act] 
THE 
COMPREHENSIVE 
AGRARIAN REFORM PROGRAM AS PROVIDED IN THIS ACT, 
UNTIL THE YEAR 2011, OR AN 
EXTENSION OF THREE (3) 
YEARS, UPON ITS EXPIRATION IN THE YEAR 2008 shall be 
funded by the Agrarian Reform Fund. 
Additional [amounts] FUNDS necessary for this purpose are 
hereby authorized to be appropriated in excess of the PREVIOUS 
initial AUGMENTATION funds, amounting to THIRTY BILLION 
Pesos ~P30,000,000,000.00) [provided under Sections 20 and 
21 of Executive Order No. 2291. 
3 


The additional INITIAL [amount] FUNDS hereby authorized 
to be appropriated hereunder shall in no case exceed FORTY 
EIGHT BILLION AND SIX HUNDRED MILLION Pesos (P48, 
600,000,000.00). 
Sources of funding or appropriations shall include the 
following: 
(a) Proceeds of the sales of the [Assets Privatization Trust 
[APT] PRIVATIZATION MANAGEMENT OFFICE (PMO); 
(b) All receipts from assets recovered and from sales of ill- 
gotten 
wealth 
recovered 
through 
the 
Presidential 
Commission on Good Government (PCGG); 
(c) Proceeds from the disposition of the properties of the 
Government in 
foreign countries, for the specific 
purposes of financing production credits, infrastructure 
and other support services required by this Act; 
(d) All income and collections OF WHATEVER FORM AND 
NATURE arising from the agrarian reform operations, 
projects and programs of THE DAR AND OTHER CARP 
implementing agencies; 
Portion of amounts accruing to the Philippines from a11 
sources of official foreign aid grants, DEBT SWAPS and 
concessional financing from all countries, to be used for 
the specific purposes of financing productions, credits, 
infrastructures, and other support services required by 
this Act: 
(e) 
(f) Yearly appropriations of noT less than Three Billion Pesos 
(P3, 000,000,000.00) from the General Appropriations 
Act; AND 
(g) Other government funds not otherwise appropriated. 
M I  xxx xxx” 
SEC. 4. 
Congressional Oversight Committee. - A Congressional 
Oversight Committee on Comprehensive Agrarian Reform Program (CARP) is 
hereby created to oversee and monitor the implementation of this Act. It shall 
be composed of the Chairpersons of the Committee on Agrarian Reform of both 
Houses, four (4) members of the House of Representatives and four (4) 
members of the Senate, to be designated respectively by the Speaker of the 
House and the President of the Senate, who shall endeavor to have the various 
land and agrarian reform sectors and regions of the country represented. 
4 


The Chairpersons of the Committees on Agrarian Reform in the Senate 
and House of Representatives shall be respectively, the Chairperson and Co- 
Chairperson of the Oversight Committee. The other members shall receive no 
compensation: however, traveling and other necessary expenses shall be 
allowed. 
In order to carry out the objectives of this Act, the Congressional 
Oversight Committee shall be provided with the necessary appropriations for 
its operation. 
SEC. 5. Powers and Functions of the Committee. - The Congressional 
Oversight Committee on CARP shall have the following powers and functions: 
(a) Prescribe and adopt guidelines which shall govern its work; 
(b) Hold hearings, receive testimonies and reports pertinent to its 
specified concerns; 
(c) Secure from any department, bureau, office or instrumentality of the 
Government such assistance as may be needed, including technical 
information, preparation, and production of reports and submission of 
recommendations or plans as it may require; 
(d) Summon by subpoena any public or private citizen to testify before it, 
or require by subpoena duces tecum to produce before it such records, 
reports or other documents as may be necessary in the performance of 
its functions; 
(e) Engage the services of resource persons from the public and private 
sectors as well as civil society as may be needed; 
(f) Approve the budget for the work of the Committee and all 
disbursements therefrom, including compensation of all personnel; 
5 


(g) Organize its staff and hire and appoint such employees and personnel 
whether temporary, contractual or on consultancy, subject to 
applicable rules; and 
(h) Exercise all the powers necessary to attain the purposes for which it is 
created. 
SEC. 6. 
Periodic Reports. - The Oversight Committee shall submit 
periodic reports on its findings and make recommendations on actions to be 
taken by Congress and the PARC. 
SEC. 7. Automatic Review. - Within two (2) years after the effectivity of 
this Act, an independent review panel composed of experts to be appointed by 
the 
President 
shall 
review 
CARP 
implementation 
and 
shall 
make 
recommendations, based on its findings, to the President and to both Houses of 
Congress. 
SEC. 8. Repealing Clause. - . Sections 29, 30, 31, 32, 33 and 34 of 
Republic Act No. 6657 and all other laws, decrees, executive orders, rules and 
regulations, issuances or parts thereof inconsistent with or contrary to this Act, 
are hereby repealed or modified accordingly. 
All corporate farms covered by these repealed provisions shall be dealt 
with under compulsory acquisition pursuant to Section 16 of Republic Act No. 
6657, as amended. 
SEC. 9. Separability Clause. - 
If any provision of this Act shall be 
unconstitutional or invalid, the other provisions not otherwise affected shall 
remain in full force and effect. 
6 


SEC. 10. 
Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved, 
7