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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
S. No. 2666 
(In substitution of S. Nos. 1911, 1990, 2047, 2122 and 2636, 
taking into consideration Proposed Senate Resolution Nos. 45, 65 and 263, 
and House Joint Resolution No. 21) 
Prepared by the Committee on Agrarian Reform; Justice and Human Rights; Finance; 
and Social Justice, Welfare and Rural Development with Senators Defensor Santiago, 
Honasan, Ejercito Estrada, Biazon, War, Legarda, Escudero and Enrile as authors 
AN ACT 
STRENGTHENING THE COMPREHENSIVE AGRARIAN REFORM PROGRAM 
(CARP), AMENDING FOR THE PURPOSE CERTAIN PROVISIONS 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 the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 2 of Republic Act No. 6657, otherwise known as the 
Comprehensive Agrarian Reform Law of 1988, is hereby amended to read as follows: 
“SECTION 2. Declaration of Principles and Policies. - It is the 
policy of the State to pursue a Comprehensive Agrarian Reform Program 
(CARP). The welfare of the landless farmers and farmworkers 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-size farms as the basis 
of Philippine agriculture. 
THE STATE SHALL PROMOTE INDUSTRIALIZATION AND FULL 
EMPLOYMENT BASEDON SOUNDAGRICULTURAL DEVELOPMENT 
AND AGRARIAN REFORM, THROUGH INDUSTRIES THAT MAKE 
FULL AND EFFICIENT USE OF HUMAN AND NATURAL RESOURCES, 
AND WHICH ARE COMPETITIVE IN BOTH DOMESTIC AND FOREIGN 
MARKETS. HOWEVER, THE STATE SHALL PROTECT FILIPINO 
ENTERPRISES AGAINST UNFAIR FOREIGN COMPETITION AND 
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TRADE PRACTICES. 


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THE STATE RECOGNIZES THAT THERE IS NOT ENOUGH 
AGRICULTURAL LAND TO BE DIVIDED AND DISTRIBUTED TO EACH 
FARMER AND REGULAR FARMWORKER SO THAT EACH ONE CAN 
OWN HlSlHER OWN ECONOMIC-SIZE FAMILY FARM. AS SUCH, A 
MEANINGFUL AGRARIAN REFORM PROGRAM TO UPLIFT THE 
LIVES AND ECONOMIC STATUS OF THE FARMER AND HlSlHER 
CHILDREN CAN ONLY BE ACHIEVED THROUGH SIMULTANEOUS 
INDUSTRIALIZATION AIMED AT DEVELOPING A SELF-RELIANT AND 
INDEPENDENT NATIONAL ECONOMY EFFECTIVELY CONTROLLED 
BY FILIPINOS. 
TO THIS END, THE STATE MAY, IN THE INTEREST OF 
NATIONAL WELFARE OR DEFENSE, ESTABLISH AND OPERATE 
VITAL INDUSTRIES. 
[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 farmers 
and farmworkers with the opportunity to enhance their dignity and improve 
the quality of their lives through greater productivity of agricultural lands. 
The agrarian reform program is 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 share of 
the fruits thereof. To this end, the State shall encourage and undertake 
the just 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 small landowners, 
and shall provide incentives for voluntary land-sharing. 
The State shall recognize the right of farmers, farmworkers 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 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 
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to prior rights, homestead rights of small settlers and the rights of 
indigenous communities to their ancestral lands. 
The State may resettle landless farmers and farmworkers 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-size 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, 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 fishermen against foreign intrusion. Fishworkers 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 pubric 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, and 
traditional and pioneering crops especially those for exports subject to the 
prior rights of the beneficiaries under this Act.” 
SEC. 2. Section 7 of Republic Act No. 6657 is hereby amended to read as 
follows: 
“SEC. 7. Priorities. -The DAR, in coordination with the PARC shall 
plan and program the acquisition and distribution of all [agricultural lands 
through a period of ten (IO) years from the effectivity of this Act.] 
REMAINING UNACQUIRED AND UNDISTRIBUTED AGRICULTURAL 
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LANDS FROM THE EFFECTIVITY OF THIS ACT UNTIL DECEMBER 
31, 2013. Lands shall be acquired and distributed as follows: 
Phase One: Rice and corn lands under Presidential Decree No. 27; 
all idle or abandoned lands; all private lands voluntarily offered by 
the owners for agrarian reform; all lands foreclosed by government 
financial institution; all lands acquired by the Presidential 
Commission on Good Government (PCGG); and all other lands 
owned by the government devoted to or suitable for agriculture, 
which shall be acquired and distributed immediately upon the 
effectivity of this Act, with the implementation to be completed 
[within a period of not more than four (4) years] ON OR BEFORE 
DECEMBER 31,2010; 
Phase two: All alienable and disposable public agricultural lands; all 
arable public agricultural lands under agro-forest, pasture and 
agricultural leases already cultivated and planted to crops in 
accordance with Section 6, Article Xlll of the Constitution; all public 
agricultural lands which are to be opened for new development and 
resettlement; and all private agricultural lands in excess of fifty (50) 
hectares, insofar as the excess hectarage is concerned, to 
implement principally the right of farmers and regular farmworkers, 
who are landless, to own directly or collectively the lands they till, 
which shall be distributed immediately upon the effectivity of this 
Act, with the implementation to be completed [within a period of 
more than four (4) years.] ON OR BEFORE DECEMBER 31,2010; 
Phase Three: All other private agricultural lands commencing with 
large landholdings and proceeding to medium and small 
landholdings under the following schedule: 
(a) Landholdings above twenty-four (24) hectares up to fifty 
(50) hectares, to begin on [the fourth (4'h) year from the 
effectivity of this Act] JANUARY 01, 2011 and to be 
completed [within three (3) years] ON OR BEFORE 
DECEMBER 31,2012; and 
(b) Landholdings from the retention limit up to twenty-four 
(24) hectares, to begin on [the sixth (6'h) year from the 
effectivity of this Act] JANUARY 01, 2012 and to be 
completed [within four (4) years] ON OR BEFORE 
DECEMBER 31, 2013; to implement principally the right of 
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farmers and regular farmworkers who are landless, to own 
directly or collectively the lands they till. 
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 tiller at the earliest practicable time; the need to enhance 
agricultural productivity; and the availability of funds and resources to 
implement and support the program. 
LAND 
ACQUISITION 
AND 
DISTRIBUTION 
SHALL 
BE 
COMPLETED WITHIN FIVE (5) YEARS FROM THE EFFECTIVITY OF 
THIS ACT: PROVIDED, THAT, NOTWITHSTANDING THE ABOVE 
SCHEDULE, PHASE THREE SHALL NOT BE IMPLEMENTED UNTIL 
AT LEAST NINETY PERCENT (90%) OF THE COUNTRY TOTAL OF 
PHASE ONE AND PHASE TWO HAVE BEEN COMPLETED: 
PROVIDED, 
FURTHER, 
THAT ALL 
ADMINISTRATIVE, 
QUASI- 
JUDICIAL, 
AND 
JUDICIAL 
PROCEEDINGS 
INVOLVING 
THE 
IMPLEMENTATION OF PHASE THREE ALREADY INSTITUTED AND 
PENDING UPON THE EFFECTIVITY OF THIS ACT SHALL BE 
ALLOWED TO PROCEED. HOWEVER, IF UPON THE EFFECTIVITY OF 
THIS 
ACT, 
LANDS 
UNDER 
PHASE 
THREE 
SUBJECT 
OF 
PROCEEDINGS MENTIONED ABOVE, IN RELATION TO WHICH NO 
AWARDS HAVE BEEN PREVIOUSLY MADE OR NO CERTIFICATES 
OF LAND OWNERSHIP HAVE BEEN PREVIOUSLY ISSUED UNDER 
SECTION 24 OF REPUBLIC ACT NO. 6657, THE AWARDS AND/OR 
THE CERTIFICATES OF LAND OWNERSHIP, IF ORDERED IN SUCH 
PROCEEDINGS, SHALL BE MADE AND/OR ISSUED ONLY AFTER 
THE PARC DECLARES THAT AT LEAST NINETY PERCENT (90%) OF 
THE COUNTRY TOTAL OF PHASE ONE AND PHASE TWO HAVE 
BEEN COMPLETED. 
In any case, the PARC, upon recommendation by the Provincial 
Agrarian Reform Coordinating Committee (PARCCOM), may declare 
certain provinces or regions as priority land reform areas, in which case 
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the acquisition and distribution of private agricultural lands therein may be 
implemented ahead of the above schedules: PROVIDED, THAT AT 
LEAST NINETY PERCENT (90%) OF THE COUNTRY TOTAL OF 
PHASE ONE AND PHASE TWO HAVE BEEN COMPLETED. 
In effecting the transfer within these guidelines, priority must be 
The PARC shall establish guidelines to implement the above 
priorities and distribution scheme, including the determination of who are 
qualified beneficiaries: Provided, That an owner-tiller may be a beneficiary 
of the land helSHE does not own but is actually cultivating to the extent of 
the difference between the area of the land helSHE owns and the award 
ceiling of three (3) hectares.” 
SEC. 3. Section 17 of Republic Act No. 6657 is hereby amended to read as 
given to lands that are tenanted. 
follows: 
“Sec. 17. Determination of Just Compensafion. - In determining 
just compensation, the cost of acquisition of the land, INCLUDING THE 
STANDING CROPS PLANTED BY THE FORMER LANDOWNER AT 
THE TIME OF VALUATION, the current value of like properties, its 
nature, actual use and income, the sworn valuation by the owner, the tax 
declarations, and the assessment made by government assessors, 
TRANSLATED INTO A BASIC FORMULA BY THE DAR shall be 
considered. 
THE STANDING CROPS IF CONSIDERED AS PART OF THE 
VALUE OF THE LAND SHALL BE VALUATED ONLY ONCE. IN NO 
CASE SHALL THE DETERMINATION OF THE VALUATION OF THE 
STANDING CROPS BE USED TO HINDER THE INSTALLATION OF 
AGRARIAN REFORM BENEFICIARIES (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 loans secured from any government financing 
institution on the said land shall be considered as additional factors to 
determine its valuation.” 
SEC. 4. Section 24 of Republic Act No. 6657 is hereby amended to read as 
follows: 
“Sec. 24. Award to Beneficiaries. - The rights and responsibilities 
of the beneficiary shall commence from the time the DAR makes an 
award of the land to himlHER, which award shall be completed within one 
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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 (CLOA), 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 
AGRARIAN REFORM PROGRAM SHALL BE INDEFEASIBLE AND 
IMPRESCRIPTIBLE AFTER ONE (1) YEAR FROM ITS REGISTRATION 
WITH THE OFFICE OF THE REGISTRY OF DEEDS. 
ALL 
CASES 
INVOLVING 
THE 
CANCELLATION 
OF 
REGISTERED CLOAs AND OTHER TITLES ISSUED UNDER ANY 
AGRARIAN REFORM PROGRAM ARE WITHIN THE JURISDICTION OF 
THE DARAB.” 
SEC. 5. Section 26 of Republic Act No. 6657 is hereby amended to read as 
follows: 
“Sec. 26. Payment by Beneficiaries. - Lands awarded pursuant to 
this Act shall be paid for by the beneficiaries to the LAND BANK OF THE 
PHILIPPINES (LBP) in thirty (30) annual amortizations at six percent (6%) 
interest per annum. THE ANNUAL AMORTIZATION SHALL START ONE 
(I) 
YEAR FROM THE DATE OF THE CLOA REGISTRATION. 
HOWEVER, IF THE OCCUPANCY TOOK PLACE AFTER THE CLOA 
REGISTRATION, THE AMORTIZATION SHALL START ONE (I) 
YEAR 
FROM ACTUAL OCCUPANCY. The payments for the first three (3) years 
after the award [may] SHALL be at reduced amounts as established by 
the PARC: Provided, That the first five (5) annual payments may not be 
more than five percent (5%) of the value of the annual gross production 
as established by the DAR. Should the scheduled annual payments after 
the fifth (!jth) 
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 [may] SHALL reduce the interest rate ANDlor 
reduce the principal obligation 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 
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this Act.” 
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follows: 
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“Sec. 27. Transferability of Awarded Lands. - Lands acquired by 
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beneficiaries under this Act [may] OR OTHER AGRARIAN REFORM 
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LAWS SHALL not be sold, transferred or conveyed except through 
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hereditary succession, or to the government, or to the LBP, or to other 
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qualified beneficiaries THROUGH THE DAR for a period of ten (IO) years: 
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Provided, however, That the children or the spouse of the transferor shall 
thereafter be permanently disqualified from becoming a beneficiary under 
SEC. 6. Section 27 of Republic Act No. 6657 is hereby amended to read as 
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have a right to repurchase the land from the government or LBP within a 
period of two (2) years. 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[)], as herein provided, shall, in turn, 
be given due notice thereof by the BARC. 
THE TITLE OF THE LAND AWARDED UNDER THE AGRARIAN 
REFORM MUST INDICATE THAT IT IS IN AN EMANCIPATION PATENT 
(EP) OR CLOA AND THE SUBSEQUENT 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/HERSELF. Failing compliance herewith, the land shall be 
transferred to the LBP which shall give due notice of the availability of the 
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In the event of such transfer to the LBP, the latter shall 
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compensate the beneficiary in one lump sum for the amounts the latter 
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has already paid, together with the value of improvements helSHE has 
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made on the land.” 
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“Sec. 36. Funding for Support Services. - In order to cover the 
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expenses and cost of support services, at least [twenty-five percent 
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(25%)] FORTY PERCENT (40%) of all appropriations for agrarian reform 
31 
shall be immediately set aside and made available for this purpose: 
land in the manner specified in the immediately preceding paragraph. 
SEC. 7. Section 36 of Republic Act No. 6657, as amended by Republic Act No 
7905, is hereby further amended to read as follows: 
38 
PROVIDED, THAT ONE-THIRD (113) OF THE FORTY PERCENT (40%) 


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OF THIS APPROPRIATION SHALL BE SPECIFICALLY ALLOCATED 
FOR SUBSIDIES TO SUPPORT THE INITIAL CAPITAL OR SEED 
MONEY FOR AGRICULTURAL PRODUCTION UPON THE AWARDING 
OF THE EP OR CLOA TO A NEW ARB AND CREDIT FACILITIES IN 
THE CASE OF EXISTING ARBs INCLUDING THE LEASEHOLDERS. 
THE LBP AND OTHER CONCERNED GOVERNMENT FINANCIAL 
INSTITUTIONS 
SHALL 
PROVIDE 
THE 
FACILITIES 
FOR 
DISBURSEMENT OF THE ABOVE FINANCIAL ASSISTANCE TO THE 
ARBs: Provided, [That for the next five (5) years, a minimum of one (I)] 
FURTHER, THAT THE FORMATION OF Agrarian Reform [Community] 
COMMUNITIES (ARCs) shall be [established] CONTINUED by the DAR, 
in coordination with the local government units, non-governmental 
organizations and people organizations in each legislative district with a 
predominant agricultural population: Provided, further, That the areas in 
which the ARCs are to be established shall have been fully subjected 
under this law. 
AFTER THE COMPLETION OF THE LAND ACQUISITION AND 
DISTRIBUTION COMPONENT OF 
THE 
CARP, 
THE 
YEARLY 
APPROPRIATION 
SHALL 
BE 
ALLOCATED 
FOR 
SUPPORT 
SERVICES, AGRARIAN JUSTICE DELIVERY, AND OTHER LAND 
TENURE REGULATORY FUNCTIONS. 
For this purpose, an Agrarian Reform Community shall be defined 
as a barangay or a cluster of barangays primarily composed and 
managed by Agrarian Reform Beneficiaries who shall be willing to be 
organized and undertake the integrated development of an area andlor 
their organizations/cooperatives. In each community, the DAR, together 
with the agencies and organizations abovementioned, shall identify the 
farmers’ association, cooperative or their respective federations approved 
by the farmers-beneficiaries that shall take the lead in the agricultural 
development of the area. In addition, the DAR, WITH PRIOR 
CONSULTATION 
WITH 
THE 
CONGRESSIONAL 
OVERSIGHT 
COMMITTEE CREATED HEREIN, shall be authorized to package 
proposals and receive grants, aids and other forms of financial assistance 
from any source: PROVIDED, THAT ANY LOAN, GRANT, AID OR ANY 
OTHER FORM OF FINANCIAL ASSISTANCE MADE PURSUANT TO 
THE 
MANDATES OF THE CARP SHALL BE CONSIDERED, 
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COMPUTED, AND REPORTED AS PART OF THE AGRARIAN REFORM 
FUND UNDER SECTION 63 HEREIN.” 
SEC. 8. Section 37 of Republic Act No. 6657 is hereby amended to read as 
follows: 
“Sec. 37. Support Setvices [to] FOR fhe AGRARIAN REFORM 
Beneficiaries. - The PARC shall ensure that support services [to farmer-] 
FOR AGRARIAN REFORM beneficiaries are provided, such as: 
(a) Land surveys and titling; 
(b) Liberalized terms on credit facilities and production loans. FOR 
THIS PURPOSE, ALL FINANCING INSTITUTIONS MAY 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 
OF 
AGRICULTURAL PRODUCTS OR INCREASE FARM INCOME 
THEREFROM; 
(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 in farming and cultivation[.]; AND 
(F) 
DIRECT AND ACTIVE DAR ASSISTANCE IN THE 
EDUCATION 
AND 
ORGANIZATION 
OF ACTUAL 
AND 
POTENTIAL 
ARBS, 
AT 
THE 
BARANGAY, 
MUNICIPAL, 
PROVINCIAL AND NATIONAL LEVELS, TOWARDS HELPING 
THEM UNDERSTAND THEIR RIGHTS AND RESPONSIBILITIES 
AS OWNER-CULTIVATORS DEVELOPING FARM-RELATED 
TRUST RELATIONSHIPS AMONG THEMSELVES AND THEIR 
NEIGHBORS, AND INCREASING FARM PRODUCTION AND 
PROFITABILITY WITH THE ULTIMATE END OF EMPOWERING 
THEM 
TO 
CHART 
THEIR 
OWN 
DESTINY. 
THE 
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REPRESENTATIVES OF THE ARBS TO THE PARC SHALL BE 
CHOSEN BY THE NATIONAL ARB ORGANIZATION. 
The PARC shall formulate policies to ensure that support services 
[to farmer-] FOR AGRARIAN REFORM beneficiaries shall be provided at 
all stages of [land reform] THE PROGRAM IMPLEMENTATION. 
The Bagong Kilusang Kabuhayan sa Kaunlaran (BKKK) Secretariat 
shall be transferred and attached to the LBP, for its supervision, including 
all its applicable and existing funds, personnel, properties, equipment and 
records. 
Misuse or diversion of the financial and support services herein 
provided shall result in sanctions against the beneficiary guilty thereof, 
including the forfeiture of the land transferred to himlHER or lesser 
sanctions as may be provided by the PARC, without prejudice to criminal 
prosecution.” 
SEC. 9. A new Section 37-A is hereby inserted in Republic Act No. 6657 to read 
as follows: 
“SEC. 37-A. GENDER RESPONSIVE SUPPORT SERVICES. - 
THE DAR MUST GIVE INCREASED ACCESS AND CONSIDERATION 
TO THE NEEDS OF THE WOMEN-FARMER BENEFICIARIES IN 
PROVIDING SUPPORT SERVICES UNTIL SUCH TIME THAT THE 
SUPPORT SERVICES ARE EQUALLY AVAILABLE TO BOTH MEN 
AND WOMEN. THE DAR SHALL ENSURE THAT THE SUPPORT 
SERVICES 
EXTENDED 
TO 
WOMEN-FARMER 
BENEFICIARIES 
INTEGRATE THEIR NEEDS AND WELL-BEING.” 
SEC. 10. Section 38 of Republic Act No. 6657 is hereby amended to read as 
follows: 
“Sec. 38. Suppotf Services [to] FOR Landowners. - The PARC, 
with the 
assistance 
of 
such other government 
agencies and 
instrumentalities as it may direct, shall provide landowners affected by the 
CARP and prior agrarian reform programs with the following services: 
(a) Investment information, financial and counseling assistance, 
PARTICULARLY 
INVESTMENT 
INFORMATION 
ON 
GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS 
IN 
PURSUIT 
OF 
NATIONAL 
INDUSTRIALIZATION AND 
ECONOMIC INDEPENDENCE; 
(b) Facilities, programs and schemes for the conversion or 
exchange of bonds issued for payment of the lands acquired with 


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stocks and bonds issued by the National Government, the [Central 
Bank] BANGKO SENTRAL NG PILIPINAS (BSP) and other 
government institutions and instrumentalities; 
(c) Marketing of [LBP] AGRARIAN REFORM bonds, as well as 
promoting the marketability of said bonds in traditional and non- 
traditional financial markets and stock exchanges; AND/OR 
(d) Other services designed to utilize productively the proceeds of 
the sale of such lands for rural industrialization. 
A landowner who invests in rural-based industries shall be entitled 
to the incentives granted to a registered enterprise engaged in a pioneer 
or preferred area of investment as provided for in the Omnibus Investment 
Code of 1987, or to such other incentives as the PARC, the LBP, or other 
government financial institutions may provide. 
The LBP shall redeem a landowner’s [LBP] AGRARIAN REFORM 
bonds at face value, provided, that AT LEAST FIFTY PERCENT (50%) 
OF the proceeds thereof shall be invested in a BOI-registered company or 
in any agri-business or agro-industrial enterprise in the region where the 
[landowner has previously made investments, to the extent of thirty 
percent (30%) of the face value of said LBP bonds, subject to guidelines 
that shall be issued by the LBP] CARP-COVERED LANDHOLDING IS 
LOCATED. AN INCENTIVE OF TWO PERCENT (2%) IN CASH SHALL 
BE 
PAID 
TO 
A 
LANDOWNER 
WHO 
MAINTAINS 
HlSlHER 
ENTERPRISE AS A GOING CONCERN FOR FIVE (5) YEARS OR 
KEEPS HlSlHER INVESTMENTS IN A 601-REGISTERED FIRM FOR 
THE SAME PERIOD. 
THELBPANDTHEDEPARTMENTOFTRADEANDINDUSTRY 
(DTI) SHALL JOINTLY FORMULATE THE PROGRAM TO CARRY our 
THESE PROVISIONS UNDER THE SUPERVISION OF THE PARC.” 
SEC. 11. Section 41 of Republic Act No. 6657 is hereby amended to read as 
follows: 
“Sec. 41. The Presidential Agrarian Reform Council. - The 
Presidential Agrarian Reform Council (PARC) shall be composed of the 
President of the Philippines as Chairman, the Secretary of Agrarian 
Reform as Vice-chairman and the following as members: Secretaries of 
the Departments of Agriculture; Environment and Natural Resources: 
Budget and Management; INTERIOR AND Local Government; Public 
Works and Highways: Trade and Industry, Finance: AND Labor and 
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Employment; 
Director-General 
of 
the 
National 
Economic 
and 
Development Authority; President, Land Bank of the Philippines; 
Administrator, National Irrigation Administration; ADMINISTRATOR, 
SUGAR 
REGULATORY 
ADMINISTRATION; 
ADMINISTRATOR, 
PHILIPPINE COCONUT AUTHORITY; ADMINISTRATOR, NATIONAL 
FOOD AUTHORITY; DIRECTOR, PHILIPPINE RICE RESEARCH 
INSTITUTE; ADMINISTRATOR, NATIONAL 
DAIRY AUTHORITY; 
ADMINISTRATOR, 
NATIONAL 
MAPPING 
AND 
RESOURCE 
INFORMATION 
AUTHORITY; 
ADMINISTRATOR, 
LAND 
REGISTRATION AUTHORITY; and three (3) representatives of affected 
landowners to represent Luzon, Visayas and Mindanao; six (6) 
representatives of agrarian reform beneficiaries, two (2) each from Luzon, 
Visayas and Mindanao: Provided, That AT LEAST one of them shall be 
from the [cultural communities] INDIGENOUS PEOPLES.” 
SEC. 12. Section 50 of Republic Act No. 6657 is hereby amended to read as 
S: 
“Sec. 50. Quasi-Judicial 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 Agriculture 
(DA) and the Department of Environment and Natural Resources (DENR). 
It shall not be bound by technical rules of procedures 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 justice and 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 contempts in the same manner and subject to 
the same penalties as provided in the Rules of Court. 
Responsible farmer leaders shall be allowed to represent 
themselves, their fellow farmers or their organizations in any proceedings 
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before the DAR: Provided, however, That when there are two or more 
representatives for any individual or group, the representatives should 
choose only one among themselves to represent such party or group 
before any DAR proceedings. 
Notwithstanding an appeal to the Court of Appeals, the decision of 
the 
DAR 
shall 
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immediately executory 
EXCEPT 
IN JUST 
COMPENSATION CASES.” 
SEC. 13. Section 55 of Republic Act No. 6657 is hereby amended to read as 
follows: 
“Sec. 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, DAR, or any of 
its 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.” 
SEC. 14. Section 63 of Republic Act No. 6657, as amended by Republic Act No. 
8532, is hereby further amended to read as follows: 
“Sec. 63. Funding Source. - The amount needed to FURTHER 
implement THE CARP AS PROVIDED IN this Act, until [the year 20081 
DECEMBER 31, 2013, UPON EXPIRATION OF FUNDING UNDER 
REPUBLIC ACT NO. 8532 AND OTHER PERTINENT LAWS, shall be 
funded from the Agrarian Reform Fund IN THE AMOUNT OF AT LEAST 
ONE 
HUNDRED 
FORTY 
SEVEN 
BILLION 
PESOS 
(P147,000,000,000.00). 
[Additional amounts necessary for this purpose are hereby 
authorized to be appropriated in excess of the initial funds, amounting to 
Fifty billion pesos (P50,000,000,000.00) provided under Sections 20 and 
21 of Executive Order 229. 
The additional amount hereby authorized to be appropriated shall 
in no case exceed Fifty billion pesos (P50,000,000,000.00.] 
Sources of funding or appropriations shall include the following: 
(a) Proceeds of the sales of the [Assets Privatization Trust] 
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[)]; 
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(c) Proceeds of 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; 
(e) Portion of amounts accruing to the Philippines from all sources 
of official foreign aid grants, DEBT SWAPS and concessional 
financing from all countries, to be used for the specific purposes of 
financing [production] PRODUCTIONS, credits, infrastructures, and 
other support services required by this Act; 
(9 Yearly appropriations of [no] NOT less than Three billion pesos 
(P3,000,000,000.00) from the General Appropriations Act; AND 
(9) Other government funds not otherwise appropriated. 
ALL 
FUNDS 
APPROPRIATED 
TO 
IMPLEMENT 
THE 
PROVISIONS OF THIS ACT SHALL BE CONSIDERED CONTINUING 
APPROPRIATIONS DURING THE PERIOD OF ITS IMPLEMENTATION: 
PROVIDED, THAT SPECIFIC AMOUNTS FOR BOND REDEMPTIONS, 
INTEREST PAYMENTS AND OTHER EXISTING OBLIGATIONS 
ARISING FROM THE IMPLEMENTATION OF THE PROGRAM SHALL 
BE INCLUDED IN THE ANNUAL GENERAL APPROPRIATIONS ACT 
(GAA)." 
SEC. 15. Section 65 of Republic Act No. 6657 is hereby amended to read as 
follows: 
"Sec. 65. Conversion of Lands. - [After the lapse of five (5) years 
from its award,] 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 the 
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 APPLICANT IS A BENEFICIARY 
UNDER AGRARIAN LAWS AND THE LAND SOUGHT TO BE 
CONVERTED IS THE LAND AWARDED TO HlMlHER OR ANY 
PORTION THEREOF, IT MUST BE SHOWN THAT: (1) AT LEAST TEN 
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( I O )  YEARS HAVE LAPSED FROM ITS AWARD; AND (2) the beneficiary 
shall have fully paid hislHER obligation[.]: PROVIDED, FURTHER, THAT 
IRRIGATED AND IRRIGABLE LANDS, REGARDLESS OF FUNDING 
COMMITMENT FOR IRRIGATION, SHALL NOT BE SUBJECT TO 
CONVERSION NOTWITHSTANDING ITS CLASSIFICATION. 
FAILURE TO IMPLEMENT THE CONVERSION PLAN WITHIN 
FIVE (5) YEARS FROM THE APPROVAL OF SUCH CONVERSION 
PLAN SHALL CAUSE THE LAND TO AUTOMATICALLY BE COVERED 
BY CARP.” 
SEC. 16. Section 68 of Republic Act No. 6657 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 [lower courts] COURT OF APPEALS, REGIONAL 
TRIAL COURTS, MUNICIPAL TRIAL COURTS, MUNICIPAL CIRCUIT 
TRIAL COURTS, METROPOLITAN TRIAL COURTS against the 
[Department of Agrarian Reform (]DAR[)], [the Department of Agriculture 
(IDA[)], 
[the Department of Environment and Natural Resources 
(]DENR[)] and the Department of Justice (DOJ) in their implementation of 
the Program.” 
SEC. 17. Section 73 of Republic Act No. 6657 is hereby amended to read as 
follows: 
“Sec. 73. Prohibited Acts and Omissions. - 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) [The] ANY conversion by any landowner of hislHER agricultural 
land into non-agricultural use with intent to avoid the application of 
this Act to hislHER landholdings and to dispossess hislHER tenant 
farmers or the land tilled by them. 
(d) The MALICIOUS AND willful prevention or obstruction by any 
person, association or entity of the implementation of the CARP. 
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(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 helSHE acquired 
by virtue of being a beneficiary, in order to circumvent the 
provisions of this Act.” 
SEC. 18. Section 74 of Republic Act No. 6657 is hereby amended to read as 
follows: 
“Sec. 74. 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 (PI ,000.00) and not more than Fifteen 
thousand pesos (P15,000.00), or both, at the discretion of the court: 
PROVIDED, THAT ANY PERSON WHO VIOLATES SECTION 73 
PARAGRAPH (E), IN RELATION TO SECTION 4 PARAGRAPH (C) 
SHALL BE PUNISHED BY IMPRISONMENT OF SIX (6) YEARS AND 
ONE (1) DAY TO TWELVE YEARS AND/OR A FINE OF ONE HUNDRED 
THOUSAND PESOS (PlO0,OOO.OO) TO FIVE HUNDRED THOUSAND 
PESOS (P500,OOO.OO) OR BOTH AT THE DISCRETION OF THE 
COURT: PROVIDED, FURTHER, THAT ANY PERSON WHO VIOLATES 
SECTION 73 PARAGRAPH 
(D) 
SHALL 
BE 
PUNISHED 
BY 
IMPRISONMENT OF TWENTY (20) YEARS AND/OR A FINE OF ONE 
MILLION PESOS (Pl,OOO,OOO.OO) 
AT THE DISCRETION OF THE 
COURT. 
If the offender is a corporation or association, the officer 
responsible therefor shall be criminally liable. IN ADDITION, ANY 
PERSON CONVICTED UNDER THIS ACT SHALL NOT BE ENTITLED 
TO ANY BENEFIT UNDER ANY AGRARIAN REFORM PROGRAM.” 
SEC. 19. Congressional Oversight Committee. - A Congressional Oversight 
Committee on Agrarian Reform (COCAR) 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, three (3) members of the House of 
Representatives and three (3) members of the Senate, to be designated respectively by 
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the Speaker of the House of Representatives and the President of the Senate, who 
shall endeavor to have the various land and agrarian reform sectors and regions of the 
country rep resented . 
The Chairpersons of the Committees on Agrarian Reform in the Senate and 
House of Representatives shall be Chairpersons of the Congressional Oversight 
Committee. The 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 COCAR shall be provided with 
SEC. 20. Powers and Functions offhe Committee. - The COCAR shall have the 
the necessary appropriations for its operation. 
following powers and functions: 
(a) Prescribe and adopt guidelines which shall govern its work; 
(b) Hold hearings and consultations, 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, particularly a yearly report of 
the record or performance of each ARB as provided under Section 22 of 
Republic Act No. 6657; 
(d) Secure from the DAR or the LBP information on the amount of just 
compensation determined to be paid or which has been paid to any 
landowner; 
(e) Oversee and monitor, in such a manner as it may deem necessary, 
the actual implementation of the program and projects by the DAR. 
(f) 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; 
(9) Engage the services of resource persons from the public and private 
sectors as well as civil society as may be needed; 
(h) Approve the budget for the work of the Committee and all 
disbursements therefrom, including compensation of all personnel; 
(i) Organize its staff and hire and appoint such employees and personnel 
whether temporary, contractual or on consultancy, subject to applicable 
rules; and 
(j) Exercise all the powers necessary to attain the purposes for which it is 
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SEC. 21. Periodic Reports. -The Committee shall submit periodic reports on its 
findings and make recommendations on actions to be undertaken by both Houses of 
Congress, DAR and PARC, and in order to carry out the objectives of this Act, an initial 
amount of Twenty five million pesos (P25,000,000.00) is hereby appropriated for the 
Congressional Oversight Committee for the first year of its operation. 
SEC. 22. Access to Information. - Notwithstanding the provisions of Republic Act 
No. 1405 and other pertinent laws, information on the amount of just compensation 
paid to any land owner under Republic Act No. 6657 and other agrarian reform laws 
shall be deemed public information. 
SEC. 23. 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. 24. Repealing Clause. - 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. 
SEC. 25. 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. 
SEC. 26. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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