NINETEENTH CONGRESS OF THE REPUBLIC )
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
Senate Bill No. 1 850
of tl)f fei il ft.il'P
23 FEB-7 P4.-27
RECEIVED SV
(In substitution of Senate Bill Nos. 55,178,922,1112,1179,1405,1476; 
1660, 1661, 1662, and 1804, taking into consideration House Bill No. 6336)
Prepared by the Committees on Agriculture, Food and Agrarian Reform; 
Finance; Ways and Means with Senators Francis "Chiz" G. Escudero, Imee R.
Marcos, Manuel "Lito" M. Lapid, Ramon Bong Revilla Jr., Joel Villanueva, 
Ronald "Bato" M. Dela Rosa, Cynthia A. Villar, and Sonny Angara as authors
thereof.
AN ACT
EMANCIPATING AGRARIAN REFORM BENEFICIARIES FROM THE 
DEBT BURDEN ARISING FROM THE AWARD OF AGRICULTURAL 
LANDS UNDER THE COMPREHENSIVE AGRARIAN REFORM 
PROGRAM AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled:
1 
SECTION. 1. Short Title. - This shall be known as the "New Agrarian
2 
Emancipation Act".
3 
SEC. 2. Condonation of the Agrarian Reform Debt - This Act shall
4 
cover the condonation of P57.557 billion principal debt of 610,054 Agrarian
5 
Reform Beneficiaries (ARBs), tilling a total of 1,173,101.57 hectares of
6 
agrarian reform lands.
7 
The principal loan of P14.5 billion, including interests, penalties and
8 
surcharges, of the 263,622 ARBs, tilling 409,206.91 hectares of agrarian
9 
reform lands, whose names and other loan details were already submitted
10 
by the Land Bank of the Philippines (LBP) to Congress, shall be condoned
11 
outright under this Act. However, the inclusion of the remaining P43.057B
12 
loan in this Section shall take effect only upon submission by the LBP and
1


1 
the Department of Agrarian Reform (DAR) of details of the indebtedness to
2 
government of the 346,432 ARBs, tilling 763,894.66 hectares of agrarian
3 
reform lands, contained in a list, as provided for in the next paragraph of
4 
this Section.
5 
Upon the effectivity of this Act, the individual loans of ARBs, including
6 
interests, penalties and surcharges, secured under the Comprehensive
7 
Agrarian Reform Program (CARP) or from other agrarian reform programs
8 
or laws, are hereby condoned and written off by the Government, thereby
9 
relieving them from the burden of payment thereof: Provided, That these
10 
ARBs shall have been indebted to government as of December 31, 2022:
11 
Provided further, That the Land Bank of the Philippines (LBP) and the
12 
Department of Agrarian Reform (DAR) shall submit the detailed list of their
13 
actual loans subject for condonation, together with the pertinent information
14 
such as name of ARBs, amount of loan plus penalties, interests, and
15 
surcharges; location; hectarage; and other relevant information, to the
16 
concerned Committees of the Senate and House of Representatives, which
17 
shall then make the submission part of the Congressional Records of this
18 
Act: Provided furthermore. That the Department of Agrarian Reform (DAR)
19 
shall thereafter issue, whenever necessary, a Certificate of Condonation
20 
which shall be annotated on the Emancipation Patent (EP), Certificate of
21 
Land Ownership Award (CLOA), or on any other title based on the applicable
22 
agrarian reform law: Provided finaiiy. That condonation as provided herein
23 
shall lift all mortgage liens, attached to the land acquired, in favor of the
24 
National Government, as represented by the LBP.
25 
SEC. 3. Termination of Payment of Compensation by ARBs Under
26 
Voluntary Land Transfer (VLT) and Direct Payment Schemes (DPS). - All
27 
direct payments of compensation by the 92,824 ARBs, tilling 178,063.95
28 
hectares of agrarian reform lands, to landowners under VLT and DPS,
29 
amounting to R119.61M are hereby terminated, and payments of the
30 
remaining balance of compensation due the concerned landowners shall be
31 
paid by the Government through the LBP and charged against the Agrarian
32 
Reform Fund: Provided, That they shall have been indebted to government


1 
as of December 31, 2022: Provided further, That this Section shall take effect
2 
only upon the submission by the LBP and DAR of a list similar to Section 2
3 
of this Act to the concerned Committees of the Senate and House of
4 
Representatives, which shall then be entered into the Congressional Records
5 
of this Act.
6 
SEC. 4. Coverage. - For purposes of this Act, the term Agrarian
7 
Reform Beneficiaries (ARBs) shall refer to farmers or farmworkers who were
8 
granted lands under Presidential Decree No. 27, Republic Act No. 6657 and
9 
Republic Act No. 9700, and who have outstanding loan balances payable to
10 
the LBP and to private landowners as of December 31, 2022.
11 
SEC. 5. Transferability and Non-Conversion of Awarded Lands. - The
12 
awarded land subject of this Act shall not be sold, transferred, or conveyed
13 
except through hereditary succession, or to the government or to the LBP,
14 
or to other qualified beneficiaries through the DAR, for a period of ten (10)
15 
years from the issuance of the Certificate of Condonation or the CLOA.
16 
The children or the spouse and in their absence, the immediate
17 
successor in interest, of the transferor shall have a right to redeem the land
18 
from the Government or the LBP within the period of two (2) years. Due
19 
notice to the availability of the land shall be given by the LBP to the Barangay
20 
Agrarian Reform Committee (BARC) where the land is situated. The
21 
Provincial Agrarian Reform Coordinating Committee, shall, in turn, be given
22 
due notice thereof by the BARC.
23 
The awarded agricultural lands under this Act shall likewise not be
24 
subject to conversion to other land uses for a period of ten (10) years from
25 
the issuance of the Certificate of Condonation or CLOA.
26 
SEC. 6. Mandatory Indusion of the ARBs in the Registry System for Basic Sectors
27 
in Agriculture (RSBSA) of the Department of Agricuitune (DA). - The ARBs are Rlipino
28 
farmers entitled to support from government agendes, particularly from the DA. The
29 
Department of Agriculture is hereby mandated to include the ARBs
30 
beneficiaries of this Act in the Registry System for Basic Sectors in Agriculture
31 
(RSBSA) and shall provide to them all support services that are due our
32 
farmers.


1 
SEC. 7. Preference to Credit Facilities and Support Services for
2 
Beneficiaries with Paid Amortizations. - ARBs who have completed payment
3 
of the amortization schedule and the payment of interest charges under
4 
Section 26 of Republic Act No. 6657, as amended, Section 6 of Executive
5 
Order No. 228 of 1987, and other agrarian reform laws shall be given
6 
preference in the provision of credit facilities and support services as
7 
mandated herein and in Section 37 of RA 6657, as amended.
8 
SEC. 8. Estate Tax Exemption. - The agrarian reform lands of ARBs,
9 
as estates, shall be exempt from the payment of estate tax: Provided, That
10 
estate tax returns already filed with the Bureau of Internal Revenue shall
11 
not be subject to estate tax and penalties arising therefrom: Provided
12 
further, That the estate tax exemption granted herein shali only apply to
13 
transfers from ARBs to their heirs.
14 
The Department of Interior and Local Government shall also
15 
encourage local government units to enact local tax amnesty on real
16 
property taxes and other transfer taxes of qualified ARBs under this Section.
17 
SEC. 9. Issuance of Agrarian Reform Tide. - The appropriate Registry
18 
of Deeds shall register the Emancipation Patent, the Certificate of Land
19 
Ownership Award, or any other title issued pursuant to the applicable
20 
agrarian reform law within sixty (60) days from the issuance thereof in the
21 
name of the ARB beneficiary. It shall likewise annotate the Notice of
22 
Condonation on all the affected EPs, CLOAs, or any other title issued
23 
pursuant to the applicable agrarian reform law within sixty (60) days from
24 
issuance by the DAR.
25 
SEC. 10. Restitution of the Agrarian Reform A ward Forfeited Solely due
26 
to Non-Payment of Annual Amortization and Interest. - Any pending
27 
administrative or judicial case involving the forfeiture by the DAR of the
28 
agrarian reform award solely due to the failure of an ARB to pay the thirty
29 
(30)-year amortization plus six percent (6%) annual interest shall
30 
immediately be dismissed motu proprio, by the DAR or the court.
31 
The execution of a final and executory administrative or judicial case
32 
decision due to the failure of an ARB to pay the 30-year amortization plus


1 
6% annual interest resulting in the disqualification of the ARB, the
2 
cancellation of the agrarian reform title, the extinguishment of the rights of
3 
possession and ownership of the awarded land, as well as the removal of the
4 
person from the awarded land or the dismantling of any improvements found
5 
therein, shall be immediately terminated, the agrarian reform award
6 
immediately restored, and the forfeiture of decision accordingly reversed.
7 
Any agrarian reform title cancelled as a result of the final and
8 
executory administrative or judicial case decision shall immediately be
9 
reconstituted. In the event that the agricultural land has already been
10 
awarded to another beneficiary, the DAR shall as far as equitable award
11 
another land to the disqualified ARB.
12 
SEC. 11. Disqualification of Agrarian Reform Beneficiaries due to
13 
Acts and Omissions Constituting Violations of Agrarian Reform Laws. - Any
14 
person convicted by final judgment of any of the prohibited acts and
15 
omissions under Sec. 73 and meted any of the penalties under Sec. 74 of RA.
16 
No. 6657, as amended, is disqualified to avail of the benefits under this Act.
17 
Disqualification shall likewise result as an outcome of a determination by
18 
final judgment that the ARB, in violation of Sec. 22 of R.A. No. 6657, as
19 
amended, willfully refused to make the awarded land as productive as
20 
possible or deliberately neglected or abandoned the awarded land
21 
continuously for a period of two (2) calendar years: Provided, That non-
22 
cultivation of the land due to non-installation of the ARBs, threats by other
23 
stakeholders or entities, lack of facilities and support services, or situations
24 
or conditions beyond the control of the ARBs not due to their fault or
25 
actuations shall not be considered as either neglect, abandonment, or
26 
grounds for disqualification.
27 
Pursuant thereto, the DAR shall thoroughly investigate and revalidate
28 
allegations that will constitute disqualification under this Section, in a manner
29 
that will be construed liberally in the favor of the ARBs.
30 
SEC. 12. Right of the Landowner to Just Compensation. - Nothing in
31 
this Act shall diminish the right of landowners to just compensation for their
32 
agricultural lands acquired under the agrarian reform program.


1 
SEC. 13. Implementing Rules and Regulations. - Within sixty (60)
2 
days from the effectivity of this Act, the Department of Agrarian Reform in
3 
coordination with the Executive Committee of the Presidential Agrarian
4 
Reform Council (PARC), with the technical assistance of the LBP, shall issue
5 
rules and regulations for the effective impiementation of this Act.
6 
SEC. 14. Agency Support. - All other government offices and
7 
agencies are directed to render such prompt and necessary assistance,
8 
subject to applicable laws, rules and regulations, to fully implement the
9 
provisions of this Act.
10 
SEC. 15. Funding. - The amount necessary for the implementation of
11 
this Act shall be charged against the Agrarian Reform Fund, as certified by the
12 
Bureau of Treasury, and the inclusion thereof in the annual General
13 
Appropriations Act shall be subject to the existing budgeting process, rules and
14 
regulations, and to such other funds as may subsequently be authorized by
15 
Congress.
16 
SEC. 16. Separability Clause. - If any provision of this Act is declared
17 
unconstitutional, the remainder of this Act or any provisions not affected
18 
thereby shall remain in full force and effect.
19 
SEC. 17. Repealing Clause. - Section 21 of RA 6657, as
20 
amended, is hereby modified. All laws, executive orders,
21 
issuances or parts thereof inconsistent with the provisions of this Act are
22 
hereby amended, repealed or modified accordingly.
23 
SEC. 18. Effectivity. -This Act shall take effect fifteen (15) days after
24 
its publication in the Official Gazetteov in a newspaper of general circulation.
25
Approved,