1 
TWENTIETH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No.  1937
EXPLANATORY NOTE 
Land is an important factor of production in agriculture and land fragmentation has significantly 
reduced agricultural productivity. The 2019 study by economists Tasso Adamopoulos and 
Diego Restuccia found that the government’s agrarian reform program has resulted in land 
fragmentation and reducing average farm size by 34 percent, agricultural productivity by 17%, 
and the share of landless individuals by 20%.1 
The current restriction on farm lands under the Comprehensive Agrarian Reform Law such as 
the five hectare limit and non-transferability of the land within 10 years of issuance and 30 
years of amortization has effectively discouraged efficient rural land market operations, eroded 
the value and collateral value of awarded lands, reducing the farmers' incentive to invest in 
land improvements, and limiting choice of more efficient contractual arrangements.2 Thus, 
decades into the government’s land reform program it has only created a new class of people: 
the “landed poor”. 
Economies of scale dictate that there is a great advantage in the operation of larger farmlands 
as the cost per unit of output decreases with the increase in farmland area. Larger farms will 
allow farmers to introduce new and alternative technologies and farming systems. It will also 
encourage younger Filipinos to go into farming thereby introducing new blood in our already 
aging farmer population.   
According to a 2021 study by agricultural economist Keijiro Otsuka, “the decrease in farm size 
is particularly pronounced in the Philippines partly because of rapid population growth and 
partly because of the failure of growth of non-farm sectors, which can absorb rural labor. If this 
trend in farm size reduction continues and the economy sustains a fairly high growth rate, the 
agricultural sector’s inefficiency can be a major constraint to further economic growth.”3 
Also at present, there are still 680,000 agrarian reform beneficiaries (ARBs) in 1.2 million 
hectares of agrarian land with amortization debts.  These ARBs, though emancipated from 
their landlords, are now saddled with debts with the land that the government awarded to 
them. Unpaid agrarian lands are covered by restrictions, reducing the land value and farmers’ 
options to increase their productivity to pay off the debt. It has undermined their ownership of 
the awarded land.  
1Tasso Adamopoulos& Diego Restuccia, 2019. "Land Reform and Productivity: A Quantitative Analysis with 
Micro Data," NBER Working Papers 25780, National Bureau of Economic Research, Inc. 
https://www.nber.org/system/files/working_papers/w25780/w25780.pdf 
2Cristina David, et al., 2003. “Land Reform and Land Market Transactions in the Philippines: Terminal 
Report,” Philippine Institute for Development Studies 
3 Keijiro Otsuka, 2021. “Changing Relationship Between Farm Size and Productivity and Its Implications for 
Philippine Agriculture.” Graduate School in Economics, Kobe University 
July 15, 2025
5:05 pm


2 
To effectively address land fragmentation and resulting decline in agricultural productivity, and 
persistent poverty in the sector, there is a need to ease restrictions on farm size, remove 
restrictions on agricultural land transactions, condone amortization debts, and promote a 
vigorous rural land leasing market.   
Section 70 of Republic Act No. 6657 or the Comprehensive Agrarian Reform Law and its 
implementing rules and regulations have created a stumbling block in the transfers of 
agricultural land. It is also proposed to remove bureaucratic delays created from the need for 
DAR clearances in land transfers, as the electronic database of the Land Registration 
Authority is sufficient to verify the landholding ceiling. 
In view of the foregoing, the passage of this bill is earnestly sought. 
RUFUS B. RODRIGUEZ 
  MAXIMO B. RODRIGUEZ, JR. 


3 
TWENTIETH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No.  1937 
AN ACT 
TO 
PROMOTE 
INVESTMENTS 
IN 
AGRICULTURE 
BY 
EASING 
FARMLAND 
RESTRICTIONS, CONDONING AMORTIZATION DEBTS AND RATIONALIZING LAND 
RELATED PROCESSES   
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1.  Declaration of Policy. – 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, condoning amortization debts, 
and rationalizing land related processes and procedures.  
SECTION 2. 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.  
SECTION 3. Landholdings’ Ceiling Requirement. – Any sale, transfer or conveyance of 
agricultural lands shall be valid as long as the resulting total agricultural landholdings by the 
transferee do not exceed twenty-four (24) hectares. Exemption to the land ownership ceiling 
of twenty-four hectares may be granted by the Department of Agrarian Reform for idle and 
non-irrigated lands. 
SECTION 4. Condonation of Unpaid Amortizations and Other Charges. – The State hereby 
condones all unpaid amortizations, interests thereon, penalties and surcharges owing or due 
to the government, obtained from the acquisition of lands awarded under the Comprehensive 
Agrarian Reform Law and other land reform legislations.  All liens and encumbrances 
associated with agrarian reform land acquisition that are annotated in the Certificates of Title 
issued to farmer beneficiaries and its derivative titles are automatically cancelled by operation 
of law. It shall not be necessary for titles to be presented to the Registry of Deeds. No further 
action shall be required from farmer beneficiaries for the cancellation of such annotations.  
SECTION 5. Lease of CARP Awarded Lands. - CARP Awarded lands may be conveyed 
through lease, at any time, to any person or entity qualified to hold lands in accordance with 
existing laws. The land area and number of lease agreements that may be entered into by any 
natural or juridical entity shall not be limited. Such leases shall not require the approval of the 
DAR or any other government agency for its validity and implementation. 
SECTION 6. Removal of DAR Clearances on Transfers of Ownership of Agricultural Lands. – 
Transferees of ownership of agricultural lands shall furnish the appropriate Registry of Deeds 
an affidavit attesting to the fact that his/her total agricultural landholdings, as a result of the 
said transfer, do not exceed twenty-four (24) hectares. Such transfers shall not require any 


4 
clearance from the Department of Agrarian Reform (DAR) as a prerequisite for registration of 
transaction with the Register of Deeds. The transfer of ownership shall be immediately 
registered by the Registrar of Deeds if the resulting agricultural landholdings of the transferee, 
based on the electronic database of the Land Registration Authority (LRA), do not exceed 24 
hectares.  If from the electronic records of the LRA it appears that the transferee’s landholdings 
exceed 24 hectares, his/her registration shall be denied and the 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 the transferee’s identify within a reasonable time as may be 
provided in the implementing rules under Section 11 of this Act.  
 
SECTION 7. 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 agricultural landholding ceiling requirement 
under this act 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 8. Redemption. – In case of foreclosure of CARP awarded lands, the period of 
redemption provided under Section 47 of Republic Act No. 8791 or the General Banking Law 
shall apply. 
 
SECTION 9. Penalty for Violation of this Act. – 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. If the offender is a corporation or association, the officer 
responsible therefore shall be criminally liable.  
 
SECTION 10. Existing Notice of Coverage. – All existing Notice of Coverage upon the 
effectivity of this act shall be effective for a period of one year.  If no acquisition is made within 
this period, these agricultural lands will be automatically released from this burden, lien, or 
encumbrance and may be freely transacted by the owner subject only to the limitations 
provided under this law. 
 
SECTION 11. 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 12. 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 13. 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 14. Effectivity Clause. -  This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
 
 
Approved,