NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S.B. No.
SENATE
178
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’22 JUL-7 P4 30
RtCtIVHD 8V.
Introduced by SENATOR IMEE R. MARCOS
AN ACT
FULFILLING THE EMANCIPATION OF TENANTS FROM THE BONDAGE OF 
THE SOIL, AMENDING P.D. NO. 27, AND R.A. NO. 6657, AS AMENDED, 
AMONG OTHERS, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II Section 21 of the 1987 Constitution states that 
State shall promote
comprehensive rural development and agrarian reform".
On 21 October 2022, we will celebrate the fiftieth (50th) anniversary of 
Presidential Decree (P.D.) No. 27. However, what we witness is the longest land- reform 
program in history. On the eve of this landmark date, let us determine to complete the 
effort of agrarian reform and finally fulfill the long-held dream of tenants from the 
bondage of the soil.
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".
In order to fulfill the agrarian reform program, the Department of Agrarian 
Reform (DAR) needs to address the immediate distribution of CARP-able lands to 
agrarian reform beneficiaries. As of 2022, DAR still has a backlog of 507,243 hectares, 
of which 84.5% (428,347 hectares) are to be compensated through the Land Bank. In 
other words, the land remaining represents the "last mile" of land reform, including 
lands not issued a notice of coverage or those suffering from erroneous issuance.
One of the leading causes for low agricultural growth in the country is due to 
lack of investment and the uncertainty in the status of agricultural lands. 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.


For Agrarian Reform Beneficiaries (ARBs), the main reason for the inability to 
invest is the absence of collateral assets, which limits their ability to access the financial 
market. The main asset of the ARBs is the land granted to them. Unfortunately, many 
of these are still collective Certificate of Land Ownership Awards (CLOAs). Collective 
CLOAs are problematic due to property right issues associated with high uncertainty of 
ownership and high transaction costs associated with securing and disposing the land. 
As such, there is a need to expedite the individual titling of lands grants which are still
under collective CLOAs.
Further, the current law does not enable ARBs to use the land as a collateral for 
bank loans for a period of ten (10) years, which give rise to the phenomena of the 
"landed poor". These phenomena 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. Article XIII, 
Section 2 of the 1987 Constitution recognizes the need of the State "to create economic 
opportunities based on freedom of initiative and self-reiiance.
As of 31 May 2022, ARBs still have to amortize a total of 58.20 billion pesos to 
the Land Bank. Of the 58.20 billion pesos to be amortized, 43.77 billion pesos is not 
yet receivable due to the absence of individual titles (still collective CLOA) and/or Land 
Distribution and Information Sheets, leaving the LBP with 14.43 billion pesos of 
receivables. Looking at the collection data, only 63.7% of collectibles has been
collected.
The low collection rate is due to a number of reasons. First, the administrative 
cost needed to collect from farmer-beneficiaries is prohibitive given the geographic 
conditions in which the farmer-beneficiaries live. Second, the ability to pay of the 
farmers is heavily compromised by the exposure of the Industry to various weather 
disturbances. In addition, the industry also suffers from structural issues that further 
hamper the ability of the farmers to pay the amortization.
It is important to note that the government has a history of writing off loans and 
penalties in recognition of difficulties of payment. In 2019, the Social Security System 
(SSS) wrote off 9.5 billion pesos worth of loan penalties. This was a reimplementation 
of a previous program in 2017 that resulted in the condonation of 13.5 billion pesos 
worth of loan penalties. Therefore, writing off the agrarian reform- related receivables 
of the Landbank is in line with the principles of agrarian reform law, which is to uphold 
the welfare of landless farmers.
Given the abovementloned circumstances, the immediate passage of this bill is 
neCeSSa^-
IMEE R. MARCOS


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S.B. No
SENATE
178
(©ffifp o( tue # OJurp
•22 JUL-7 P4 30
RECEIVED Bi'.
Introduced by SENATOR IMEE R. MARCOS
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AN ACT
FULFILLING THE EMANCIPATION OF TENANTS FROM THE BONDAGE OF 
THE SOIL, AMENDING P.D. NO. 27, AND R.A. NO. 6657, AS AMENDED, 
AMONG OTHERS, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
SECTION 1. Short Title. - This Act shall be known as the "Emancipation of 
Tenants Act"
SEC. 2. Declaration of Policy. - It shall be the policy of the State to have 
equitable distribution of opportunities, income, and wealth to attain expanding national 
and local productivity that will act as the key to raising the quality of life for all. In 
relation to this. Agrarian Reform Beneficiaries (ARBs) must be given prioritization, in 
line with the principles of the agrarian reform laws, in the distribution and acquisition 
of awarded lands to provide them ease in access in the financial market.
SEC. 3. Condonation of Unpaid Amortizations, Interest Payments, Penalties or 
Surcharges. - All unpaid amortizations and interests. Including penalties or surcharges, 
if any due from loans secured under the Comprehensive Agrarian Reform Program 
(CARP) are hereby written-off by the Government, thereby relieving all ARBs from the 
payment thereof. The ARBs shall be deemed as rightful owners of the lands awarded
to them upon the effectivity of this Act.
SEC. 4. Free Land Distribution. — All agricultural lands covered by the CARP 
instituted under R.A. No. 6657, as amended, which have not been distributed at the 
time of effectivity of this Act, shall be distributed at no cost to qualified ARBs.


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SEC. 5. Termination of Payments on Amortizations. - Payments on 
amortizations by ARBs, past due and current, or any balance thereof, including interests 
and surcharges, for lands already distributed under P.D. No. 27 and R.A. No. 6657, as 
amended by R.A. No. 9700, are hereby terminated and declared as written-off. The 
ARBs of such lands already distributed shall be deemed full owners thereof, subject to 
the conditions in Section 8 hereof, upon the effectivity of this Act.
SEC. 6. Termination of Payment of Compensation by Beneficiaries Under 
Voluntary Land Transfer. - All direct payments of compensation by ARBs to land owners 
under voluntary land transfer are hereby terminated, and payments of remaining 
balance of compensation due the concerned landowners, if any, shall be paid by the 
Land Bank of the Philippines (LBP).
SEC. 7. Lands Covered by Certificates of Land Ownership Awards (CLOAs), 
Certificates of Land Transfer (CLTs) and Emancipation Patents (EPs) That Were 
Cancelled or are Pending Cancellation. - Lands covered by Certificates of Land 
Ownership Awards (CLOAs), Certificates of Land Transfer (CLTs) and Emancipation 
Patents (EPs) that were cancelled due to the failure of ARBs thereof to pay amortizations 
shall be restored to the possession of the said ARBs who shall be deemed full owners 
thereof upon the effectivity of this Act. Provided thaf such lands have been duly 
awarded to other qualified ARBs, the payments of amortizations due thereon shall also 
be terminated and full ownership granted to the subsequent ARBs, as provided in 
Section 5 of this Act.
All pending cancellation proceedings of CLOAs, CLTs and EPs due to the failure 
of ARBs to pay amortizations are hereby terminated. Lands covered by CLOAs, CLTs 
and EPs pending cancellation due to the failure to pay amortizations shall be restored 
to the possession of the farmer-beneficiaries who shall be deemed full owners thereof 
In accordance with Section 2 of this Act.
SEC. 8. Conditions to the Grant of Full Ownership. - The grant of full ownership 
of land shall be subject to the following conditions which shall be annotated on the 
appropriate titles evidencing ownership to be issued and registered in the names of 
qualified ARBs or farmer-beneficiaries:
a. Qualified farmer-beneficiaries shall comply with conditions set forth under 
the Conditional Cash Transfer Program of the Department of Soda! Welfare and 
Development (DSWD), but shall not be identified or treated as the compliance of


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beneficiaries of the program qualified to receive conditional cash grants, but their 
compliance shall be their investment in human resource development in their own 
families;
b. Qualified farmer-beneficiaries shall undergo or attend at least once a year, 
training, free of charge, in new farming techniques, the use of better quality and high 
yielding seeds, mechanization, agri-entrepreneurship and such other skills and 
capabilities to increase farm yields and farm Incomes in any accredited farm school or 
agriculture institute, or training programs sponsored or conducted by the Department 
of Agriculture (DA), the Department of Agrarian Reform (DAR) and related agencies 
and Instrumentalities of government and accredited private sector agri-education 
groups; and
c. Qualified farmer-beneficiaries shall volunteer for community service such as 
greening and watershed protection, disaster relief and rehabilitation. Irrigation and 
water impounding system repairs and similar volunteer services that benefit their 
farming communities.
Ownership of lands distributed under this Act shall fully revert to the government 
when qualified ARBs or farmer-beneficiaries or their heirs, as the case may be, fail to 
comply with the above enumerated conditions for two (2) successive years from the 
time of the grant of ownership.
In case where the ARBs or farmer-beneficiaries are deceased at the time of or 
after the effectivity of this Act, ownership over lands covered by this Act shall be 
registered and titled in the name of their heirs in accordance with existing laws on
succession.
SEC. 9. Special Committee on Land Administration. - The DA, DAR, and the 
Department of Environment and Natural Resources (DENR), In coordination with the 
Land Registration Authority (LRA) and the Register of Deeds, shall create a special 
committee to accelerate and improve the process of administrative titling, issuance of 
certificates of title, land distribution, and adjudication of property rights of alienable and 
disposable lands covered in this Act. The process may proceed from plot to plot and 
shall determine landownership in a transparent and participatory manner.
Collective CLOAs issued shall be immediately subdivided and parceled into 
Individual CLOAs and distributed to the farmer-beneficiaries after proper validation 
and re-identification.


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The Committee may be considered as a model for the eventual consolidation of 
all titling functions under the DA, DAR, DENR, and LA, under a comprehensive land 
administration, for a more efficient, transparent, and expeditious process. For purpose 
of titling, the DENR and Department of Public Works and Highways (DPWH) may be 
enjoined to assist in the identification and parceling of lands by providing drones, 
satellite imaging, geotagging, and other applicable technologies.
SEC. 10. Subdivision and Titling of Awarded Lands under the Comprehensive 
Agrarian Reform Program (CARP). - Within ninety (90) days from the effectivlty of this 
Act, the DAR is hereby directed, in consultation with the ARBs, relevant national 
government agencies, and other pertinent stakeholders, to establish guidelines and 
procedures to expedite the subdivision and titling of agricultural lands or parts thereof 
awarded to ARBs under the CARP. The subdivision of collective CLOAs and titling 
process shall prioritize portions of land that represents the home-lots of the ARBs.
Lands acquired by ARBs may be sold, transferred, or conveyed. Provided that, 
the children or the spouse of the transferor ARB shall have a right to repurchase the 
land from the government or LBP within a period of two (2) years. Provided further 
that, such repurchase shall be for agri-business arrangement or other agri-related 
purposes.
Any document of title, such as the CLOA, evidencing the right of the ARB to 
the land shall be considered as prima face proof of the ARB's title over the property.
SEC. 11. Acceptability of Agricultural Land as Loan Collateral. - All agricultural 
lands shall be accepted as collateral by any lender, bank, or other financial Institution 
to secure loans of the registered owners as appearing in the Emancipation Patent, 
Homestead Patent, Free Patent, CLOA, Original Certificate of Title, or Transfer 
Certificate of Title.
SEC. 12. Conversion of Lands. - When the land ceases to be economically 
feasible and sound for agricultural purposes, or the locality has become urbanized and 
the land will have a greater economic value for residential, commercial or Industrial 
purposes, the DAR, upon application of the ARB, with due notice to the affected parties, 
and subject to existing laws, may authorize the reclassification or conversion of the land 
and its disposition.


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SEC. 13. Role of DAR and Landbank. - The DAR shall provide a list of all CARP- 
able lands and ARBs and their heirs, if any. On the other hand, Landbank shall continue 
to be the implementing agency of CARP involved In land evaluation, compensation to 
owners of private agricultural lands, and collection of amortizations from CARP farmer 
beneficiaries.
SEC. 14. Final Land Acquisition. - The land acquisition and completion 
component provided under CARP shall be completed within December 2025.
Any case and/or proceeding, as initiated by the issuance of a Notice of Coverage 
or Acceptance of a Voluntary Offer to Sell, involving the implementation of the 
provisions of R.A. No. 6657, as amended, which may remain pending shall be allowed 
to proceed until its finality and be executed even beyond such date.
SEC. 15. Expanding Exclusion from CARP: Following Three (3) Generations. - 
Landowners of private agricultural lands primarily devoted to rice and corn under a 
system of sharecrop or lease-tenancy provided in P.D. No. 27, may retain an area of 
not more than fifteen (15) hectares.
SEC. 16. Agrarian Land Database. - An agrarian land database shall be 
established by the DA, DA, DENR, LRA, National Commission on Indigenous People 
(NCIP), in coordination with the Register of Deeds, which shall contain records of all 
types of land such as property rights, interests, land use, regulations and restrictions, 
and boundaries, among others. Provided thab such information system shall be 
accessible to the public, including Local Government Units (LGUs).
SEC. 17. Expansion of the Department of Agriculture (DA). - The Department 
of Agriculture (DA) shall be expanded Into the "Department of Agriculture and Rural 
Development (DARD)," to include agri-support and extension services to ARBs and
employees.
SEC. 18. Winding Down of the Department of Agrarian Reform (DAR). - 
Following completion of the land distribution under the CARP, the DAR shall be wound 
down and employees of the Department who has rendered at least ten (10) years of 
service may avail of a special early retirement package that will provide for an additional 
benefit equivalent to 1.5 months' salary for every year of government service. Other 
employees may opt for lateral transfer to a commensurate position available in DARD.


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SEC. 19. Appropriation. - Upon effectivity of this Act, the amount necessary to 
carry out the provisions of this Act shall be included in the annual General Appropriations 
Act (GA). Provided that, annual appropriation shall be allocated fully to support services, 
agrarian justice delivery, and operational requirements of the DAR and other CARP 
implementing agencies.
SEC. 20. Implementing Rules and Regulations. - Within sixty (60) days from 
the effectivity of this Act, the DA and DAR, LA, in coordination with the Philippine 
Agrarian Reform Council (PARC) and the LBP, shall promulgate the necessary rules and 
regulations to effectively implement the provisions of this Act.
SEC. 21. Repealing Clause. - All laws, decrees, orders, rules and regulations 
or other issuances or parts thereof inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
SEC. 22. Separability Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect.
Sec. 23. Effectivity. - This Act shall take effect after fifteen (15) days following 
the completion of its publication either in the Official Gazette or in a newspaper of 
general circulation in the Philippines.
Approved,