Cooperatives in the Implementation Cooperatives in the Implementation

of Philippine Agrarian Reform: of Philippine Agrarian Reform:

Towards Creation of Enterprising Towards Creation of Enterprising

Communities Communities

Ma. Elena C. CabaMa. Elena C. Cabaññeses

Asst. Director, DARAsst. Director, DAR--BARBDBARBD

Presented during the International Conference on Presented during the International Conference on ““Cooperative Cooperative Enterprises: Key to Sustainable Economic And Social Progress, 8Enterprises: Key to Sustainable Economic And Social Progress, 8--10 10

November 2012, UPLB, College Laguna, Phil.November 2012, UPLB, College Laguna, Phil.

Discussion Points: Discussion Points:

•• History and key features of recent AR programsHistory and key features of recent AR programs

•• Tracing the participation of cooperatives in AR Tracing the participation of cooperatives in AR

implementationimplementation

•• Some successful experiences in engaging Some successful experiences in engaging

cooperatives on enterprise cooperatives on enterprise

and economic development and economic development

in AR areasin AR areas

•• Key challenges for sustainingKey challenges for sustaining

partnership with Coops on ARpartnership with Coops on AR

History and key features of land/ agrarian reform

� RA 34 (Pres. Roxas/1946(Pres. Roxas/1946--4848) ) Established the 70Established the 70--30 sharing 30 sharing arrangements and regulating sharearrangements and regulating share--tenancy contractstenancy contracts

�� RA 1160, s.54 RA 1160, s.54 (Pres Magsaysay/1953(Pres Magsaysay/1953--1957) Created the Natl 1957) Created the Natl Resettlement and Rehabilitation Administration (NARRA) to relocaResettlement and Rehabilitation Administration (NARRA) to relocate te rebels and landless farmers and provide them farmlands and home rebels and landless farmers and provide them farmlands and home lots in Palawan and Mindanaolots in Palawan and Mindanao

�� RA1199 RA1199 (Agricultural Tenancy Act of 1954) (Agricultural Tenancy Act of 1954) ---- provided security of provided security of tenure of tenants; created the Court of Agrarian Relations.tenure of tenants; created the Court of Agrarian Relations.

�� RA1400RA1400 (Land Reform Act of 1955) (Land Reform Act of 1955) ---- Created the Land Tenure Created the Land Tenure Administration (LTA) which was responsible for the acquisition aAdministration (LTA) which was responsible for the acquisition and nd distribution of large tenanted rice and corn lands over 200 hectdistribution of large tenanted rice and corn lands over 200 hectares ares for individuals and 600 hectares for corporations.for individuals and 600 hectares for corporations.

�� RA 821 RA 821 (Creation of Agricultural Credit Cooperative Financing (Creation of Agricultural Credit Cooperative Financing Administration) Administration) ---- Provided small farmers and share tenants loans Provided small farmers and share tenants loans with low interest rates of six to eight percent.with low interest rates of six to eight percent.

History and key features of land/ agrarian reform

�� RA 3844, s. 1963 (Agricultural Land Reform Code) RA 3844, s. 1963 (Agricultural Land Reform Code) ---- Abolished Abolished share tenancy, institutionalized leasehold, set retention limit share tenancy, institutionalized leasehold, set retention limit at 75 at 75 hectares, invested rights of preemption and redemption for tenanhectares, invested rights of preemption and redemption for tenant t farmers, provided for an administrative machinery for farmers, provided for an administrative machinery for implementation, implementation,

institutionalized a judicial institutionalized a judicial system of agrarian cases, system of agrarian cases, incorporated extension, incorporated extension, marketing and supervised credit marketing and supervised credit system of services of farmer system of services of farmer beneficiaries.beneficiaries.

History and key features of land/ agrarian reform

�� RA6389RA6389, (Code of Agrarian Reform) and , (Code of Agrarian Reform) and RA No. 6390 RA No. 6390 of 1971 of 1971 ---- Created Created the Department of Agrarian Reform and the Agrarian Reform Speciathe Department of Agrarian Reform and the Agrarian Reform Special l Account Fund. It strengthen the position of farmers and expandedAccount Fund. It strengthen the position of farmers and expanded the the scope of agrarian reform.; Introduced the Operation Land Transfescope of agrarian reform.; Introduced the Operation Land Transfer (OLT) r (OLT) and Operation Land Leasehold (OLL)and Operation Land Leasehold (OLL)

�� Presidential Decree No. 2, September Presidential Decree No. 2, September 26, 1972 26, 1972 ---- Declared the country under Declared the country under land reform program. It enjoined all land reform program. It enjoined all agencies and offices of the government agencies and offices of the government to extend full cooperation and assistance to extend full cooperation and assistance to the DAR. It also activated the Agrarian to the DAR. It also activated the Agrarian Reform Coordinating CouncilReform Coordinating Council

�� Presidential Decree No. 27, October 21, Presidential Decree No. 27, October 21, 1972 1972 ---- Restricted land reform scope to Restricted land reform scope to tenanted rice and corn lands and set the tenanted rice and corn lands and set the retention limit at 7 hectares. retention limit at 7 hectares.

History and key features of land/ agrarian reform

�� RA6657RA6657, June 10, 1988 (Comprehensive Agrarian Reform Law) , June 10, 1988 (Comprehensive Agrarian Reform Law) – launch of CARP and extension of agrarian reform to cover all agricultural lands; promote social justice and industrialization; providing the mechpromote social justice and industrialization; providing the mechanism for its anism for its implementation and for other purposes.implementation and for other purposes.

Components: Components:

> Land Adjudication and Distribution/ > Land Adjudication and Distribution/

Land Tenure Improvement Land Tenure Improvement

> Program Beneficiaries Development > Program Beneficiaries Development

-- ARC Strategy (1993): targeting ARC Strategy (1993): targeting

support services to selected support services to selected

agrarian reform communitiesagrarian reform communities

> Agrarian Justice Delivery: adjudication > Agrarian Justice Delivery: adjudication

and land valuationand land valuation

Qualified Farmer Beneficiaries

a. Agricultural lessees and

share tenants; b. Regular farmworkers; c. Seasonal farmworkers;

d. Other farmworkers; e. Actual tillers or occupants of public lands;

f. Collective or cooperatives of the FBs; and g. Others directly working on the land

History and key features of land/ agrarian reform

�� AR initiatives under AR initiatives under Pres Fidel Ramos:Pres Fidel Ramos:

-- -- Set conditions to limit Set conditions to limit conversion of specific conversion of specific agri lands;agri lands;

-- -- Exempted fishponds Exempted fishponds and prawns from the and prawns from the coverage of CARP. coverage of CARP.

-- -- Provided an Provided an additional Php50 billion additional Php50 billion for CARP and for CARP and extended its extended its implementation for implementation for another 10 years.another 10 years.

� AR Initiative under Pres. Joseph Estrada-- Executive Order N0. 151, Sept. 1999 (Farmer's Trust Fund) - Allowed the voluntary consolidation of small farm operation into medium and large scale integrated enterprise that can access long-term capital.- launched the Magkabalikat Para sa Kaunlarang Agraryo or MAGKASAKA: promote joint ventures with private investors into agrarian sector to make FBs competitive.

� AR Initiatves under Pres. Gloria Macapagal Arroyo

- Vigorous LAD activities;

- Provision of package of

support services: credit,

extension services,

irrigation facilities, roads

and bridges, marketing

facilities, and training and

technical support programs;- Infra Projects – transform

ARCs into rural economic

zones, help in job creation

in the countryside.

- Launched KALAHI AR Zone

- Clear backlog of agrarian

cases by hiring more

paralegal officers

Salient features of RA9700Salient features of RA9700�� Republic Act 9700 or the Comprehensive Agrarian Reform Republic Act 9700 or the Comprehensive Agrarian Reform

Program Extension with Reforms (CARPER), signed into Program Extension with Reforms (CARPER), signed into law on August 7, 2009law on August 7, 2009�� Strengthened and improved CARL; RA 6657 has not been superseded Strengthened and improved CARL; RA 6657 has not been superseded by RA by RA

9700. It further strengthened and improved it; 9700. It further strengthened and improved it;

�� Accelerate delivery of support services; Accelerate delivery of support services;

�� 150 billion budget150 billion budget

�� Restored compulsory acquisition and Restored compulsory acquisition and

has extended the land acquisition has extended the land acquisition and distribution component for five and distribution component for five

years starting July 1, 2009 up to June years starting July 1, 2009 up to June

30, 2014; 30, 2014;

�� Creation of the Congressional Creation of the Congressional Oversight Committee on Agrarian Oversight Committee on Agrarian

Reform (COCAR) to oversee, monitor Reform (COCAR) to oversee, monitor

and evaluate progress of CARP and evaluate progress of CARP implementation within the five (5) implementation within the five (5)

year time frame. year time frame.

Mode of AcquisitionMode of AcquisitionMode of AcquisitionMode of Acquisition

�� Compulsory Acquisition (CA)Compulsory Acquisition (CA)

�� Voluntary Offer to Sell (VOS) Voluntary Offer to Sell (VOS)

�� Voluntary Land Transfers (VLT) Voluntary Land Transfers (VLT)

�� NonNon--private Agricultural Lands private Agricultural Lands

(settlements, government owned (settlements, government owned

lands, landed estates) lands, landed estates)

�� Operation Land Leasehold (OLL) Operation Land Leasehold (OLL)

�� Titling in Public A&D Lands Titling in Public A&D Lands

(DENR): Forestry Sector CBFM/ISF(DENR): Forestry Sector CBFM/ISF

DAR CARP Accomplishment as of June 2010

Total Scope (hectares) Total Scope (hectares) 5,153,8575,153,857Total LAD Accomplishment (hectares) Total LAD Accomplishment (hectares) 4,273,202.30 (82.91%)4,273,202.30 (82.91%)Total Agrarian Reform Beneficiaries (ARBs) Total Agrarian Reform Beneficiaries (ARBs)

covered covered 2.495 Million2.495 MillionAverage land area distributed per ARBSAverage land area distributed per ARBS 1.712 hectares1.712 hectaresTotal areas issued with leasehold contract Total areas issued with leasehold contract 1,7111,000 hectares1,7111,000 hectaresTotal ARB benefited Total ARB benefited 1,202,000 ARBs 1,202,000 ARBs

Total ARCs launched Total ARCs launched 2,149 ARCs covering 9,336 2,149 ARCs covering 9,336 brgysbrgys

Total ARB orgns/ cooperatives assistedTotal ARB orgns/ cooperatives assisted 6,317 orgns6,317 orgnsTotal amount of credit/MF facilitated Total amount of credit/MF facilitated P4.114 BillionP4.114 BillionTotal ARBs benefited Total ARBs benefited 303,738 ARBs303,738 ARBsTotal number of funded projects Total number of funded projects 24,995 projects24,995 projectsARBs & NARBs & N--ARBs facilitated access to BSS ARBs facilitated access to BSS 1,305,864 beneficiaries 1,305,864 beneficiaries Foreign Resource Mobilization Foreign Resource Mobilization P57.4 B for 61 projectsP57.4 B for 61 projectsFMR completed (Km) FMR completed (Km) 7,67 Km7,67 KmPHF constructed PHF constructed 543 units543 units

COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION IN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF AR

�� 19401940’’s: s: Cooperative Marketing Law which directed the organization of Cooperative Marketing Law which directed the organization of farmers into marketing cooperatives; farmers into marketing cooperatives;

�� Republic Act 583 Created the Small Farmers Cooperative Loan FundRepublic Act 583 Created the Small Farmers Cooperative Loan Fund

Republic Act 821 created the Agricultural Credit Financing AdminRepublic Act 821 created the Agricultural Credit Financing Administration istration (ACCFA) which organized the Farmers(ACCFA) which organized the Farmers’’ Cooperative Marketing Cooperative Marketing

Associations (FACOMAs)Associations (FACOMAs)

�� 19501950’’s:s: Establishment of the Federation of Free Farmers (FFF); which Establishment of the Federation of Free Farmers (FFF); which

became the largest organizations of rural workers in the Philippbecame the largest organizations of rural workers in the Philippines ines

Members are fishermen, agricultural laborers, agricultural tenanMembers are fishermen, agricultural laborers, agricultural tenants, ownerts, owner--cultivators, and settlers. As active supporter of agrarian reforcultivators, and settlers. As active supporter of agrarian reform and rural m and rural

development program, FFF has helped rural workers participate indevelopment program, FFF has helped rural workers participate in

government decisiongovernment decision--making and implementation. Over the years, it has making and implementation. Over the years, it has helped cooperatives manage projects. helped cooperatives manage projects.

��

COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION IN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF AR

� 1960’s, Establishment of Agricultural Credit Cooperative Institute (ACCI); Enacted the Agrarian Reform Code; Land Bank of the Philippines was also established during the same year. In 1969, the Agrarian Reform Code was passed, mandating that coops be utilized as primary conduits for credit, supply and marketing services to agrarian reform beneficiaries.

� 1972: Under the Land Reform Program during the Martial Law, the tenant-farmers were obliged to compulsory join a pre-cooperative organization called Samahang Nayon

� 1990s, the Cooperative Code of the Philippines was enacted, the Cooperative Development Authority was created, the National Cooperative Movement (NCM) and the Philippine Cooperative Center (PCC) were organized; In 1998, the Coop National Confederation of Cooperatives (NATCCO) Network Party was formed by members of NATTCO and landing a seat in the House of Representatives.

COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION IN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF AR

�� 1986: Section 2, RA 6657, recognized the key role of 1986: Section 2, RA 6657, recognized the key role of cooperatives in CARP:as among the key cooperatives in CARP:as among the key dimensions/elements to be promoted under CARP. dimensions/elements to be promoted under CARP.

The State shall recognize the right of farmers, farm workers The State shall recognize the right of farmers, farm workers and landowners, as well as and landowners, as well as cooperativescooperatives and other and other independent farmers' organization, to participate in the independent farmers' organization, to participate in the planning, organization, and management of the program, planning, organization, and management of the program, and shall provide support to agriculture through appropriate and shall provide support to agriculture through appropriate technology and research, and adequate financial, technology and research, and adequate financial, production, marketing and other support servicesproduction, marketing and other support services

COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION COOPERATIVE PARTICIPATION IN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF ARIN THE IMPLEMENTATION OF AR

�� Section 29, RA 6657, Section 29, RA 6657, �� In general, lands shall be distributed directly to the individuaIn general, lands shall be distributed directly to the individual workerl worker--

beneficiaries. beneficiaries. �� In case it is not economically feasible and sound to divide the In case it is not economically feasible and sound to divide the land, land,

then it shall be owned collectively by the workerthen it shall be owned collectively by the worker--beneficiaries who beneficiaries who

shall form a workers' cooperative or association which will dealshall form a workers' cooperative or association which will deal with with

the corporation or business association. Until a new agreement ithe corporation or business association. Until a new agreement is s

entered into by and between the workers' cooperative or associatentered into by and between the workers' cooperative or association ion

and the corporation or business association, any agreement existand the corporation or business association, any agreement existing ing

at the time this Act takes effect between the former and the preat the time this Act takes effect between the former and the previous vious

landowner shall be respected by both the workers' cooperative orlandowner shall be respected by both the workers' cooperative or

association and the corporation or business association.association and the corporation or business association.

The ARC strategyThe ARC strategyThe ARC strategyThe ARC strategyThe ARC strategyThe ARC strategyThe ARC strategyThe ARC strategy

�� Meant to empower and capacitate agrarian reform beneficiariesMeant to empower and capacitate agrarian reform beneficiaries

�� Delivery of support services to ARBs: post harvest facilities, fDelivery of support services to ARBs: post harvest facilities, farm to arm to

market roads, irrigation, technical extensionmarket roads, irrigation, technical extension

�� CDD based approach mainstreamed in local development plansCDD based approach mainstreamed in local development plans

�� AreaArea--based approach focusing on maximizing scope of impactbased approach focusing on maximizing scope of impact

�� Excellent tool for attracting ODAExcellent tool for attracting ODA

0

150,000

300,000

450,000

600,000

750,000

900,000

1,050,000

1,200,000

1,350,000

1,500,000

Sept. '12 1,400,984 903,475 481,022

Dec. '11 1,382,882 832,367 465,502

Dec. '10 1,347,241 817,854 469,951

Inc/dec.( 2011 vs. 2012) 18,102 71,108 15,520

% Accomp 1.31% 8.54% 3.33%

No. of ARBs Orgn Mem ARB Mem

MembershipMembership

Year

Ave. Members/

Orgn

Ave. ARB

Members/ Orgn

Sept. 2012 143 76

CY 2011 133 75

CY 2010 133 77

32% are ARBs are members to orgn from the total ARBs in

ARCs (CY 2012)

32% are ARBs are members to orgn from the total ARBs in

ARCs (CY 2012)

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

4,000.00

Sept. '12 1,900.98 3,767.94

Dec. '11 1,716.38 2,836.06

Dec. '10 1,430.45 2,511.79

Inc./dec. 364.62 214.94

% Accomp 25.49% 8.86%

SM CBU

Financial StatusFinancial Status

CBU & SMCBU & SM(in Million pesos)(in Million pesos)

Year

Ave. CBU/ Orgn Ave. CBU/

Mem

Ave. SM/

Orgn

Ave. SM/ Mem

Sep. 2012 P596,651.03 P4,170.50 P300,978.41 P2,104.08

CY 2011 P453,914.48 P3,407.22 P274,708.82 P2,062.05

CY 2010 P409,419.18 P4,322.85 P233,162.09 P3,718.02

Total Members contributing to CBU = 740,869 (CY 2012)

Total Members contributing to CBU = 740,869 (CY 2012)

Total Members contributing to SM = 871,805 (CY 2012)

Total Members contributing to SM = 871,805 (CY 2012)

Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in Engaging Cooperatives Engaging Cooperatives Engaging Cooperatives Engaging Cooperatives Engaging Cooperatives Engaging Cooperatives Engaging Cooperatives Engaging Cooperatives

AGRI-PRODUCTION AND TECHNOLOGY

Five (5) ARB rubber plantation-based

cooperatives managing multi-million pesos

enterprises after they have adopted industry

standard compliant rubber production

system, supervised credit, and customized

CapDev program

INFORMATION AND KNOWLEDGE

Six (6) cooperatives engaged under E-Agrikultura to manage ICT equipment for last mile connection and facilitate access to information related to agri technology and markets

15 cooperatives adopted community-based knowledge system which enhanced their planning and collective decision-making processes

PRODUCTIVE ASSETS AND MARKETS

- 11 ARB cooperatives managing village

level food processing centers and producing

products compliant with FDA standards

- 350 cooperatives engaged in food

processing business and shall be assisted to

secure FDA licenses

ACCESS FACILITATION TO BASIC SOCIAL SERVICES

-Mangloy MPC and 18 other ARB cooperatives successfully initiated and operationalized a cooperative-managed and community-based health insurance w/h have generated P4.7M health fund - 29 ARB cooperatives as adoptors of low-cost technology to install water and sanitation facilities to introduce change in behavior and practices on health, hygiene and sanitation

Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in Examples of Successful Experiences in EngagingEngagingEngagingEngagingEngagingEngagingEngagingEngaging Cooperatives Cooperatives Cooperatives Cooperatives Cooperatives Cooperatives Cooperatives Cooperatives

Baug CARP Beneficiaries Multi-Purpose Cooperative

Incoming Engagement with Cooperatives Incoming Engagement with Cooperatives Incoming Engagement with Cooperatives Incoming Engagement with Cooperatives Incoming Engagement with Cooperatives Incoming Engagement with Cooperatives Incoming Engagement with Cooperatives Incoming Engagement with Cooperatives

AGRI-PRODUCTION AND TECHNOLOGY

Six (6) cooperatives to continue to be

engaged in a process of establishing

market-led production system through the

clustering approach

1 ARCCESS project per province which is

expected to produce enterprises managed

by coops

INFORMATION AND KNOWLEDGE

79 cooperatives to be trained on the various aspects of developing and managing business and social enterprises by way of deploying enterprise organizers and coaches

PRODUCTIVE ASSETS AND MARKETS

-Under DAR-NATCCO MICOOP program, 48

coops were strengthened as MF conduit able

to disbursed P738M in the form of loans to

member-borrowers, generated a combined

savings and share capital of P227M

- Under the DAR-CARD MF Devt Program,

strengthened 22 coops as MF conduits

extending loan to 15,999 members, released

P105M loans, and raised a combine savings

and CBU of P41.8M funds

- Creation of network of community retail

store to be managed by cooperatives as

alterative distribution channel of basic goods

ACCESS FACILITATION TO BASIC SOCIAL SERVICES

-Additional 30 cooperatives to be developed as adoptors of low-cost WATSAN technologies to have an access to clean and potable water and promote improved behavior and practices on health, hygiene and sanitation

Key Challenge for Sustainable Key Challenge for Sustainable Key Challenge for Sustainable Key Challenge for Sustainable Key Challenge for Sustainable Key Challenge for Sustainable Key Challenge for Sustainable Key Challenge for Sustainable Partnership with Coops on ARPartnership with Coops on ARPartnership with Coops on ARPartnership with Coops on ARPartnership with Coops on ARPartnership with Coops on ARPartnership with Coops on ARPartnership with Coops on AR

Increasing ResourceBase

Member-ship reach

> Responsive

products and

services

Professional

Leadership

and Core

Management

Inter-

professional

orgnl

platforms

Networksand Dialogues Promotionof business models (contract farming)

PPP, leveraging

ARBsLINKING

BRIDGING

COLLABORATE

Thank you for listeningThank you for listeningThank you for listeningThank you for listeningThank you for listeningThank you for listeningThank you for listeningThank you for listening……………………