AGRICULTURAL

DEVELOPMENT

Agriculture: The Backbone of the Nation

CONTRIBUTIONS OF AGRICULTURE

Supply raw materials to industry

Increase income

Release of labor force in agriculture to industry

Export earnings of country

Job creation

Balanced development

• PROBLEMS OF

AGRICULTURE

• Risky business

• Financing

• Production

• Processing

• Marketing

• Lack of government

support

• Prices of agricultural

products are not stable

• Limited land to cultivate

SOURCES OF SMALL SCALE AGRICULTURAL PROGRESS

Technological change and innovation

Appropriate government economic policies

Supportive Social Institutions

• CONDITONS FOR GENERAL RURAL ADVANCEMENT

• Modernizing farm structures to meet rising food demands LAND REFORM)

• Creating an effective supporting system

• Changing the rural environment to improve levels of living

http://www.marcschenker.com/gallery/world-farm-work/China_rice_worker_web?full=1

Definition of terms

LAND REFORM : full range of measure that may or should be taken to improve or remedy the defects in the relationship among men with respect to their rights in the land

It is concerned with rights in land, and their character, strength and distribution

AGRARIAN REFORM : includes land reform and the reform and development of complementary institutional framework such as administrative agencies of the government

It focuses on broader set of issues: the class character of the relations of production and distribution in farming and related enterprises, and how these connect to the wider class structure

Land tenure structure ; one or more types of land tenure systems regulating the rights to ownership and control and usage of land and the duties accompanying such rights

Production structure : relates to the nature, type and modus operandi as well as the actual production or farm operation

• RELIGIOUS ASPECT

• Biblical background

• Papal teachings

• Church estates

• Moral aspect

• Peace and internal stability

• Landowner is more than

compensated

• Injustice in landlordism

• Innate tendency of man to own

land

• ECONOMIC ASPECTS

• Vital position in national economy

• Obstacle top agricultural productivity

• An instrument for increasing agricultural productivity

• SOCIO-CULTURAL

• It is a multifaceted program

• Assumption about Filipino tenant farmers

ASPECTS OF AGRARIAN REFROM

• POLITICAL ASPECT

• Top priority of the

government

• As a political process

• LEGAL ASPECT

• Two vantage points

• To conform with

constitution

• Constitutional

mandates

• Policy development

• WAYS OF CHANGING THE AGRARIAN STRUCTURE

• Revolutionary situation

• Authoritarian regime

• Within politically democratic framework

• Requirements for successful implementation

• Provisions of a line of command from the center to field levels

• Provisions of supporting services

• Enforcement of administrative organization and procedures and judicial system

• Involvement of beneficiaries in the implementation

Variations of agrarian reform programs

• Retention ceilings

• Recipients or beneficiaries

• Valuation

• Mode of payment

• Repayment of new owners

• Government support

• Obligations of the new owners

I. PRE SPAINSH TIME

(land pattern, social classes)

II. THE SPANISH

Encomienda system

Feudal system

Capitalism emerged

Royal Decrees of 1880 and 1884 (legal title)

1896 revolution with peasant

1898 peasants gained control

Spain ceded Philippines to US through the Treaty of Paris

HISTORY OF AGRARIAN REFORM

III. AMERICAN PERIOD

Tenancy of peasants on friars continued

Introduced capitalism

LAWS :

Philippine Organic Act 1902 : private individuals = 16 hectares ; corporations = 1,024

Land Registration Act of 1902: systematic registration of land through Torrens system

Public Land Act of 1903 – homestead system

• IV. Philippine Independence : Tydings-

McDuffie Law.

• Provision of a 10 year transition period

when the commonwealth Government was

to be organized

• Social Justice Program : anti-usury,

tenancy regulation, issuance of license to

homesteaders to farm on public lands

V. JAPANESE OCCUPATION

Peasant took up arms

HUKBALAHAP (March 29, 1942)

End of war marked the end of HUKBALAHAP

Huk Revolution (1946-1947)

Huks were defeated through the assitance of the US

VI. AGRARIAN REFORM UNDER FILIPINO LEADERSHIP

QUEZON (1935-1944)

Rice Tenancy Law

CROP SHARING Crop Sharing

loans for tenants

ROXAS AND QUIRINO (1946-1953)

RA 34 : 70-30 crop sharing

LASEDECO : Land Settlement Development Corportaion after WWII

MAGSAYSAY (1953-1957)

Agricultural Tenancy Act of 1954 (RA 1199)

Land Reform Act of 1955 (RA 1400)

Regulate all

forms of tenure

relations

Rights to Share

tenants to

leasehold

Security of

tenure to tenants

Rice and corn

lands

Reduce large landholdings and

consolidate smaller, uneconomic

holdings into plots of adequate

sizes

Resettle tenants in areas where

land is abundant

Provide adequate credit facilities

for small landholders

Reduce rental and interest rates

Secure land titles for small

landholders

Reform property tax structure

NARRA free distribution of lands

of public domain to landless

tenants

MACAPAGAL (1961-

1965)

Land Reform Code (RA

3844) – farmers to own

the land they till

Retention limit 300 to 75

Abolished share tenancy

and instituted leasehold

system

MARCOS (`965-1986)

PD 2 share tenancy as

illegal and declared entire

country as an agrarian

reform are

PD 27

Rice and corn lands

Landholdings to 7 HA

CLT and Emancipation

Patents to new owners

DAR created ( RA 6389)

AQUINO 1986-1992

Proclamation 131 : CARP as major program of the government

EO 229 : mechanism for CARP’s implementation

EO 129-A strengthening DAR as lead agency for implementaion of CARPP

EO 228 : full landownership to qualified benficiries; manner of payment and mode oc compensation to land owner

RA 6657 : CARL : signed June 10, 1988 and took effect June 16, 1988

EO 405 : Land Bank of the Philippines as responsible for land valuation

EO 406 : CARP as central to the government’s effort to hasten countryside agro-industrial development and directed the implementing agencies for alignment of their programs.

EO 497 : directives to all government instrumentalities

Necessity of agrarian reform

• Economic

• Social

• political

OBJECTIONS TO AGRARIAN

REFORM

Fragmentation of farm holdings

Small farms uneconomic

Small landholdings included

It failed in the past

COMPREHENSIVE AGRARIAN

REFORM LAW

( R.A. 6657)

• Agrarian Reform

is the

redistribution of

lands to farmers

and regular farm

workers who are

landless,

irrespective of

tenurial

arrangements

• VISION A nation where there is equitable

land ownership with empowered agrarian reform beneficiaries who are effectively managing their economic and social development for a better quality of life

• MISSION CARP seeks massive and rapid

increase in agricultural productivity and improvement of access of the masses to resources, particularly land

NEED for CARP Revival and development of Philippine Agriculture sector Increase productivity Essential element Shift of capital from land to industry Imperatives of the president Cooperation, harmony and understanding Participation of all concerned Partner of the Philippines to the continuing program of the government Needs of times call for a change Forces of history

NEEDS of CARP

Realistic and flexible

Funds

Infrastructure projects

Education

OBJECTIVES

Equity

Capability

Sustainability

POLICY

Welfare of landless farmers

Encourage the formation of economic sized families

Land has a social function and land ownership has social responsibility

Comprehensive Agrarian Reform Program:

☺ Redistribution of agricultural land; the education and organization of beneficiaries, and the delivery of support services-credit, infrastructure, technology, post harvest, and the like

☺ Centerpiece of Aquino Administration and signed by Pres. Aquino June 10, 1988 and took effect June 15, 1988

SCOPE :

Ownership and the control of more or less 10.3 million ha. Of agricultural land, representing about one third of the total area of the Philippines, shall be transferred over a 10 year period to an estimated 3.9 million beneficiaries.

LANDS COVERED BY CARP

Lands covered by

CARP:

All public and private

agricultural lands

regardless of tenural

arrangement and

commodity produced

• Public agricultural lands:

lands of public domain

suitable for or devoted to

agriculture

• Private agricultural lands :

those owned by private

entities or by government

agencies in a propriety

capacity

LANDS OF MULTINATIONAL CORPORTAION

Implementation is to be completed within 3 years

Scope : In excess of 1000 Ha and 500 Ha in excess of foreigner

Contracts covering areas not in excess of 1000 Ha in case of corporations, and 500 for individuals are allowed to continue until August 29,1992

Implementation not later than 10 years

Distribution and formation of workers’ cooperative

Production and income sharing

Modern technology in production

COMMERCIAL FARMING

Subject to compulsory acquisition

New farms, the ten year period begins after 1st year commercial production

Initiation steps to acquire land

VOS, CA or direct payment scheme

Production and income sharing

Grounds for disqualification

Mandatory requirement

Optional retirement or resignation

Dismissal for cause by final judgment

Waiver or refusal to be beneficiary

Violation of agrarian reform laws

EXEMPTIONS

LANDS ACTUALLY, DIRECTLY

AND EXCLUSIVELY USED AND

FOUND TO BE NECESSARY FOR :

• Forest reserves and reforestation

• Fish sanctuaries and breeding

grounds

• Watersheds and mangroves

• School sites and campuses

• Church sites

• Communal or burial grounds

• Penal colonies and penal farms

• Government and private research

and quarantine centers

All lands with 18% slope and over

except those already developed

•Church sites and

convents, mosques

National defense

Parks and

wildlife

ANCESTRAL LANDS

Protection of rights of

indigenous cultural to

ensure their

economic, social and

cultural well being

communities

Suspension of the

implementation

Enactment of regional

laws

• SEC. 9. Ancestral Lands. - For purposes of this Act,

ancestral lands of each indigenous cultural community

shall include, but not be limited to, lands in the actual,

continuous and open possession and occupation of the

community and its members: Provided, That the Torrens

System shall be respected.

• The right of these communities to their ancestral lands

shall be protected to ensure their economic, social and

cultural well-being. In line with the other principles of

self-determination and autonomy, the systems of land

ownership, land use, and the modes of settling land

disputes of all these communities must be recognized

and respected.

ORDER OF PRIORITY AREAS

PHASE ONE

Rice and corn lands under PD 27

All idle or abandoned lands

All private lands voluntary; offered by the owners of agrarian reform

All lands foreclosed by governmental financial institution

All lands acquired by PCGG

All lands owned by the government devoted to or suitable for agriculture

4 years implementation

PHASE TWO

All alienable and disposable public agricultural lands

All arable public agricultural lands under agro-forest, pasture and agricultural leases

All public agricultural lands which are opened for new development and resettlement

All private agricultural lands in excess of 50 Ha

4years implementation

PHASE THREE : all other private agricultural lands commencing with large landholdings and proceeding to medium and small landholdings

Landholdings above 24 Ha up to 50 Ha ( 3years)

Landholdings from the retention limit of up to 24 Ha (3 years)

LAND DISTRIBUTION

Donor by RA 6657: Landowner

RETENTION LIMIT : LANDOWNER

§ 5 Ha

§ 3 Ha to each child : (1) that he is

at least fifteen (15) years of age;

and (2) that he is actually tilling

the land or directly managing the

farm: Provided, That landowners

whose lands have been covered

by Presidential Decree No. 27

shall be allowed to keep the area

originally retained by them

thereunder;

§ Section 6, Chapter II

• BENEFICIARY:

Natural or juridical persons

Distribution Limit :

3 Hectares

RETENTION LIMIT

• RIGHT TO CHOOSE

: compact and

contiguous

• EXCEPTION :

• Tenants refusal –

leaseholder- not

beneficiary

• Option has to be

within 1 year period

• The right to choose the area to be retained, which shall be compact

or contiguous, shall pertain, to the landowner: Provided,

however, That in case the area selected for retention by the

landowner is tenanted, the tenant shall have the option to choose

whether to remain therein or be a beneficiary in the same or another

agricultural land with similar or comparable features. In case the

tenant chooses to remain in the retained area, he shall be

considered a leaseholder and shall lose his right to be a beneficiary

under this Act. In case the tenant chooses to be a beneficiary in

another agricultural land, he loses his right as a leaseholder to the

land retained by the landowner. The tenant must exercise this option

within a period of one (1) year from the time the landowner

manifests his choice of the area for retention.

QUALIFICATION TO BE

BENEFICIARY

Agricultural lesses and

share tenants

Regular farmworkers

Other farm workers

Actual tillers or

occupants of public

lands

Collective or

cooperatives of the

above beneficiaries

Others directly working

on the land

Landless

15 years old or head of the family at the time the property was transferred in the name of the Republic of the Philippines

Willingness, ability and aptitude to cultivate the land to make it productive

ORDER OF PRIORITY IN

LAND DISTRIBUTION

Modes how private lands are acquired

OPERATION LAND

TRANSFER (OLT)

Rice and corn lands

PD 27

COMPULSORY

ACQUISITION (CA)

Acquired through mandate

of law

VOLUNTARY OFFER

TO SELL (VOS)

Landowners come

forward to the gov’t to

offer their lands to DAR

EXECUTIVE ORDER 407

Government owning

agricultural lands

VOLUNTARY LAND

TRANSFER

Landowners offer their

lands for sale directly to

qualified beneficiaries

Steps in land acquisitions

Identification of

landowners and

beneficiaries

Land valuation and

landowners’

compensation

Transfer of Title from

the landowner

Registration of landowners : to file sworn statement in the Assessor's office

Co-owned, mortgaged and sequestered lands

Valuation of property for compensation purposes

exemptions

• REGISTRATION OF BENEFICIARIES

• DAR, through BARC shall register all agricultural lessee. Tenants or farm workers

• Posting of registry list

• Purpose of registration

TENANTS / LESSEE RIGHT OF

REDEEMTPION

• LANDOWNER MUST FIRST OFFER TO SELL HIS LAND TO TENANT

• THE TENANT HAS THE RIGHT TO REDEEM THE LAND AT REASONABLE PRICE IF LANDOWNER DECIDES TO SELL WITHOUT TENANTS CONSENT

• SALE OR TRANSFER TO THE GOVERNMENT ACQUIRED BY THE BENFICIARY UNDER CARL SHALL BE SUBJECT TO REPURCHASE OF THE RIGHT OF THE CHILDREN OR SPOUSE

Valuation of the land

MARO sends notice

To landowner and beneficiary

LBP for valuation

DAR

makes review

Through BLAD

MARO makes

report TO PARO

To complete

Valuation and

For recommendation

To DAR central Office

DAR prepares for

signatory

Of secretary

Acceptance

Or rejection

of landowner

redistribution

NOTICE

From DAR to

Landowner to

Acquire land

Payment

In case of

acceptance

Determination

of

compensation

Taking position

Landowner’s compensation

• Cash and government bonds

• excess 50 ha : 25% cash

• 24-50ha : 30% cash

• Less than 24 ha : 35% cash

Government instruments : shares of stocks in government corporations, tax`credits, Land Bank bonds

Payment scheme for beneficiaries

• Lands awarded is to be paid to the Land Bank of the Philippines in 30 annual amortization at 6 % per annum (VOS, CA, EO 407); and 20 annual amortization at 6% (OLT)

• Payments made affordable

1st five annual payments may not exceed five percent of the value of the annual gross production as established by DAR

n.b. LBP may reduced the interest rate after the fifth year should there be an increase of 10% of the annual gross production

• 100,000; 35,000

• 220,000-35,000= 185,000

Support services

BENEFICIARIES Land survey and titling Liberalized terms on credit facilities and production loans Extension services by wat of planning, cropping, production and post harvest technology transfer Infrastructure support Research, production and use if organic fertilizers Training and education assistance

LANDOWNERS

Investment information,

financial and counselling

assistance

Facilities programs and

schemes for conversion and

exchange of baonds

Marketing of LBP bonds

SEC. 63. Funding Source

• The initial amount needed to implement this Act for the period of ten

(10) years upon approval hereof shall be funded from the Agrarian

Reform Fund created under Sections 20 and 21 of Executive Order

No. 229.Additional shall include the following:

• (a) Proceeds of the sales of the Assets Privatization Trust;

• (b) All receipts from assets recovered and from sale of ill-gotten

wealth recovered through the Presidential Commission on Good

Government;

• (c) Proceeds of the disposition of the properties of the Government

in foreign countries;

SEC. 63. Funding Source

• (d) Portion of amounts accruing to the Philippines from all sources or

official foreign aid grants and concessional financing from all

countries, to be used for the specific purposes of financing

production credits, infrastructures, and other support services

required by this Act;

• (e) Other government funds not otherwise not appropriated

• All funds appropriated to implement the provisions of this Act shall

be considered continuing appropriations during the period of its

implementation.

• SEC. 64. Financial Intermediary for the CARP. - The

Land Bank of the Philippines shall be the financial

intermediary for the CARP, and shall insure that the

social justice objectives of the CARP shall enjoy a

preference among its priorities.

•

Proofs of landownership

Emancipation

patents for OLT

lands

Certificates of

landownership

Award (CLOA) for

CA, VOS and EO 407

lands for

resettlement areas

Free patents for

public lands

Grounds for forfeiture of

awarded lands

♣ Non payment of a total of three annual amortizations

♣ Negligence ♣ Misuse ♣ Unauthorized sale of

land or any support extended

Prohibited Acts and Omissions(Chapter XV, Sec.73)

• (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 conversion by any landowner of his agricultural land into non-

agricultural use with intent to avoid the application of this Act to his

landholdings and to dispossess his tenant farmers or the land tilled by

them;

• (d) The willful prevention or obstruction by any person, association or

entity of the implementation of the CARP;

• (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;

• (f) The sale, transfer or conveyance by a beneficiary of the right to

use or any other usufructuary right over the land he acquired by

virtue of being a beneficiary, in order to circumvent the provisions of

this Act.

Prohibited Acts and Omissions(Chapter XV, Sec.73)

DAR

DENR LBP LRA DTI DA DPWH NIA

GOVERNMENT AGENCIES INVOLVED IN

LAND ACQUISITION