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Republic of the PhilippinesCongress of the Philippines

Metro Manila

Eighth Congress

Republic Act No. 6657 June 10, 19

AN AC! "N#!"!$!"N% A C&'PRE(EN#")E A%RAR"AN RE*&R' PR&%RA' !& PR&'&!E #&C"A+J$#!"CE AN "N$#!R"A+"-A!"&N, PR&)""N% !(E 'EC(AN"#' *&R "!# "'P+E'EN!A!"&N,

AN *&R &!(ER P$RPE#

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

C(AP!ER "Preliin/r Ch/pter

#ection 1. Title. This Act shall be known as the Comprehensive Agrarian Reform Law of 1988.

#ection . Declaration of Principles and Policies. It is the policy of the State to pursue aComprehensive Agrarian Reform rogram !CAR"# The welfare of the lan$less farmers an$ farmworkerswill receive the highest consi$eration to promote social %ustice an$ to move the nation towar$ soun$ rural

$evelopment an$ in$ustriali&ation' an$ the establishment of owner cultivatorship of economic(si&e farms asthe basis of hilippine agriculture#

To this en$' a more e)uitable $istribution an$ ownership of lan$' with $ue regar$ to the rights of lan$ownersto %ust compensation an$ to the ecological nee$s of the nation' shall be un$ertaken to provi$e farmers an$farmworkers with the opportunity to enhance their $ignity an$ improve the )uality of their lives throughgreater pro$uctivity of agricultural lan$s#

The agrarian reform program is foun$e$ on the right of farmers an$ regular farmworkers' who are lan$less'to own $irectly or collectively the lan$s they till or' in the case of other farm workers' to receive a %ust shareof the fruits thereof# To this en$' the State shall encourage an$ un$ertake the %ust $istribution of allagricultural lan$s' sub%ect to the priorities an$ retention limits set forth in this Act' having taken into accountecological' $evelopmental' an$ e)uity consi$erations' an$ sub%ect to the payment of %ust compensation#The State shall respect the right of small lan$owners' an$ shall provi$e incentives for voluntary lan$(sharing#

The State shall recogni&e the right of farmers' farmworkers an$ lan$owners' as well as cooperatives an$other in$epen$ent farmers* organi&ations' to participate in the planning' organi&ation' an$ management ofthe program' an$ shall provi$e support to agriculture through appropriate technology an$ research' an$a$e)uate financial pro$uction' marketing an$ other support services#

The State shall apply the principles of agrarian reform' or stewar$ship' whenever applicable' in accor$ancewith law' in the $isposition or utili&ation of other natural resources' inclu$ing lan$s of the public $omain'un$er lease or concession' suitable to agriculture' sub%ect to prior rights' homestea$ rights of small settlersan$ the rights of in$igenous communities to their ancestral lan$s#

The State may resettle lan$less farmers an$ farmworkers in its own agricultural estates' which shall be$istribute$ to them in the manner provi$e$ by law#

+y means of appropriate incentives' the State shall encourage the formation an$ maintenance ofeconomic(si&e family farms to be constitute$ by in$ivi$ual beneficiaries an$ small lan$owners#

The State shall protect the rights of subsistence fishermen' especially of local communities' to thepreferential use of communal marine an$ fishing resources' both inlan$ an$ offshore#t shall provi$e supportto such fishermen through appropriate technology an$ research' a$e)uate financial' pro$uction an$marketing assistance an$ other services# The State shall also protect' $evelop an$ conserve suchresources# The protection shall e,ten$ to offshore fishing groun$s of subsistence fishermen against foreignintrusion# -ishworkers shall receive a %ust share from their labor in the utili&ation of marine an$ fishingresources#

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The State shall be gui$e$ by the principles that lan$ has a social function an$ lan$ ownership has a socialresponsibility# .wners of agricultural lan$s have the obligation to cultivate $irectly or through labora$ministration the lan$s they own an$ thereby make the lan$ pro$uctive#

The State shall provi$e incentives to lan$owners to invest the procee$s of the agrarian reform program topromote in$ustriali&ation' employment an$ privati&ation of public sector enterprises# -inancial instrumentsuse$ as payment for lan$s shall contain features that shall enhance negotiability an$ acceptability in themarketplace#

The State may lease un$evelope$ lan$s of the public $omain to )ualifie$ entities for the $evelopment ofcapital(intensive farms' an$ tra$itional an$ pioneering crops especially those for e,ports sub%ect to the priorrights of the beneficiaries un$er this Act#

#ection 2. Definitions. -or the purpose of this Act' unless the conte,t in$icates otherwise:

!a" Agrarian Reform means re$istribution of lan$s' regar$less of crops or fruits pro$uce$' to farmersan$ regular farmworkers who are lan$less' irrespective of tenurial arrangement' to inclu$e thetotality of factors an$ support services $esigne$ to lift the economic status of the beneficiaries an$all other arrangements alternative to the physical re$istribution of lan$s' such as pro$uction orprofit(sharing' labor a$ministration' an$ the $istribution of shares of stocks' which will allowbeneficiaries to receive a %ust share of the fruits of the lan$s they work#

!b" Agriculture' Agricultural /nterprise or Agricultural Activity means the cultivation of the soil'planting of crops' growing of fruit trees' raising of livestock' poultry or fish' inclu$ing the harvestingof such farm pro$ucts' an$ other farm activities an$ practices performe$ by a farmer in con%unctionwith such farming operations $one by person whether natural or %uri$ical#

!c" Agricultural 0an$ refers to lan$ $evote$ to agricultural activity as $efine$ in this Act an$ notclassifie$ as mineral' forest' resi$ential' commercial or in$ustrial lan$#

!$" Agrarian 1ispute refers to any controversy relating to tenurial arrangements' whether leasehol$'tenancy' stewar$ship or otherwise' over lan$s $evote$ to agriculture' inclu$ing $isputes concerningfarmworkers* associations or representation of persons in negotiating' fi,ing' maintaining' changing'or seeking to arrange terms or con$itions of such tenurial arrangements#

It inclu$es any controversy relating to compensation of lan$s ac)uire$ un$er this Act an$ otherterms an$ con$itions of transfer of ownership from lan$owners to farmworkers' tenants an$ other

agrarian reform beneficiaries' whether the $isputants stan$ in the pro,imate relation of farmoperator an$ beneficiary' lan$owner an$ tenant' or lessor an$ lessee#

!e" I$le or Aban$one$ 0an$ refers to any agricultural lan$ not cultivate$' tille$ or $evelope$ topro$uce any crop nor $evote$ to any specific economic purpose continuously for a perio$ of three!2" years imme$iately prior to the receipt of notice of ac)uisition by the government as provi$e$un$er this Act' but $oes not inclu$e lan$ that has become permanently or regularly $evote$ to non(agricultural purposes#t $oes not inclu$e lan$ which has become unpro$uctive by reason of forcema%eure or any other fortuitous event' provi$e$ that prior to such event' such lan$ was previouslyuse$ for agricultural or other economic purpose#

!f" -armer refers to a natural person whose primary livelihoo$ is cultivation of lan$ or the pro$uctionof agricultural crops' either by himself' or primarily with the assistance of his imme$iate farm

househol$' whether the lan$ is owne$ by him' or by another person un$er a leasehol$ or sharetenancy agreement or arrangement with the owner thereof#

!g" -armworker is a natural person who ren$ers service for value as an employee or laborer in anagricultural enterprise or farm regar$less of whether his compensation is pai$ on a $aily' weekly'monthly or 3pakyaw3 basis# The term inclu$es an in$ivi$ual whose work has cease$ as aconse)uence of' or in connection with' a pen$ing agrarian $ispute an$ who has not obtaine$ asubstantially e)uivalent an$ regular farm employment#

!h" Regular -armworker is a natural person who is employe$ on a permanent basis by anagricultural enterprise or farm#

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!i" Seasonal -armworker is a natural person who is employe$ on a recurrent' perio$ic orintermittent basis by an agricultural enterprise or farm' whether as a permanent or a non(permanentlaborer' such as 3$umaan3' 3saca$a3' an$ the like#

!%" .ther -armworker is a farmworker who $oes not fall un$er paragraphs !g"' !h" an$ !i"#

!k" Cooperatives shall refer to organi&ations compose$ primarily of small agricultural pro$ucers'farmers' farmworkers' or other agrarian reform beneficiaries who voluntarily organi&e themselves

for the purpose of pooling lan$' human' technological' financial or other economic resources' an$operate$ on the principle of one member' one vote# A %uri$ical person may be a member of acooperative' with the same rights an$ $uties as a natural person#

C(AP!ER ""Co3er/ge

#ection 4. Scope. The Comprehensive Agrarian Reform 0aw of 4565 shall cover' regar$less of tenurialarrangement an$ commo$ity pro$uce$' all public an$ private agricultural lan$s' as provi$e$ inroclamation 7o# 424 an$ /,ecutive .r$er 7o# 885' inclu$ing other lan$s of the public $omain suitable foragriculture#

More specifically the following lan$s are covere$ by the Comprehensive Agrarian Reform rogram:

!a" All alienable an$ $isposable lan$s of the public $omain $evote$ to or suitable for agriculture# 7o

reclassification of forest or mineral lan$s to agricultural lan$s shall be un$ertaken after the approvalof this Act until Congress' taking into account ecological' $evelopmental an$ e)uity consi$erations'shall have $etermine$ by law' the specific limits of the public $omain#

!b" All lan$s of the public $omain in e,cess of the specific limits as $etermine$ by Congress in theprece$ing paragraph9

!c" All other lan$s owne$ by the overnment $evote$ to or suitable for agriculture9 an$

!$" All private lan$s $evote$ to or suitable for agriculture regar$less of the agricultural pro$uctsraise$ or that can be raise$ thereon#

#ection 5. Schedule of mplementation. The $istribution of all lan$s covere$ by this Act shall beimplemente$ imme$iately an$ complete$ within ten !4;" years from the effectivity thereof#

#ection 6. Retention Limits. /,cept as otherwise provi$e$ in this Act' no person may own or retain'$irectly or in$irectly' any public or private agricultural lan$' the si&e of which shall vary accor$ing to factorsgoverning a viable family(si&e farm' such as commo$ity pro$uce$' terrain' infrastructure' an$ soil fertility as$etermine$ by the resi$ential Agrarian Reform Council !ARC" create$ hereun$er' but in no case shallretention by the lan$owner e,cee$ five !pon the effectivity of this Act' any sale' $isposition' lease' management' contract or transfer of possession

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of private lan$s e,ecute$ by the original lan$owner in violation of the Act shall be null an$ voi$: provi$e$'however' that those e,ecute$ prior to this Act shall be vali$ only when registere$ with the Register of 1ee$swithin a perio$ of three !2" months after the effectivity of this Act# Thereafter' all Registers of 1ee$s shallinform the 1epartment of Agrarian Reform !1AR" within thirty !2;" $ays of any transaction involvingagricultural lan$s in e,cess of five !

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0an$s covere$ by the paragraph imme$iately prece$ing' un$er lease' management' grower or servicecontracts' an$ the like' shall be $ispose$ of as follows:

!a" 0ease' management' grower or service contracts covering such lan$s covering an aggregatearea in e,cess of 4';;; hectares' lease$ or hel$ by foreign in$ivi$uals in e,cess of

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an$ respecte$#

Any provision of law to the contrary notwithstan$ing' the ARC may suspen$ the implementation of this Actwith respect to ancestral lan$s for the purpose of i$entifying an$ $elineating such lan$s: provi$e$' that inthe autonomous regions' the respective legislatures may enact their own laws on ancestral $omain sub%ectto the provisions of the Constitution an$ the principles enunciate$ in this Act an$ other national laws#

#ection 10. "#emptions and "#clusions. 0an$s actually' $irectly an$ e,clusively use$ an$ foun$ to be

necessary for parks' wil$life' forest reserves' reforestation' fish sanctuaries an$ bree$ing groun$s'watershe$s' an$ mangroves' national $efense' school sites an$ campuses inclu$ing e,perimental farmstations operate$ by public or private schools for e$ucational purposes' see$s an$ see$lings research an$pilot pro$uction centers' church sites an$ convents appurtenant thereto' mos)ue sites an$ Islamic centersappurtenant thereto' communal burial groun$s an$ cemeteries' penal colonies an$ penal farms actuallyworke$ by the inmates' government an$ private research an$ )uarantine centers an$ all lan$s witheighteen percent !46" slope an$ over' e,cept those alrea$y $evelope$ shall be e,empt from thecoverage of the Act#

#ection 11. Commercial $arming. Commercial farms' which are private agricultural lan$s $evote$ tocommercial livestock' poultry an$ swine raising' an$ a)uaculture inclu$ing saltbe$s' fishpon$s an$ prawnpon$s' fruit farms' orchar$s' vegetable an$ cut(flower farms' an$ cacao' coffee an$ rubber plantations'shall be sub%ect to imme$iate compulsory ac)uisition an$ $istribution after !4;" years from the effectivity ofthe Act#n the case of new farms' the ten(year perio$ shall begin from the first year of commercial pro$uctionan$ operation' as $etermine$ by the 1AR# 1uring the ten(year perio$' the government shall initiate thesteps necessary to ac)uire these lan$s' upon payment of %ust compensation for the lan$ an$ theimprovements thereon' preferably in favor of organi&e$ cooperatives or associations' which shall hereaftermanage the sai$ lan$s for the worker(beneficiaries#

If the 1AR $etermines that the purposes for which this $eferment is grante$ no longer e,ist' such areasshall automatically be sub%ect to re$istribution#

The provisions of Section 28 of the Act' with regar$ to pro$uction(an$ income(sharing' shall apply tocommercial farms#

C(AP!ER """"pro3eent of !enuri/l /n +/bor Rel/tions

#ection 1. Determination of Lease Rentals. In or$er to protect an$ improve the tenurial an$economic status of the farmers in tenante$ lan$s un$er the retention limit an$ lan$s not yet ac)uire$ un$erthis Act' the 1AR is man$ate$ to $etermine an$ fi, imme$iately the lease rentals thereof in accor$ancewith Section 2? of Republic Act 7o# 26??' as amen$e$: provi$e$' that the 1AR shall imme$iately an$perio$ically review an$ a$%ust the rental structure for $ifferent crops' inclu$ing rice an$ corn' or $ifferentregions in or$er to improve progressively the con$itions of the farmer' tenant or lessee#

#ection 12. Production%Sharing Plan. Any enterprise a$opting the scheme provi$e$ for in Section 28or operating un$er a pro$uction venture' lease' management contract or other similar arrangement an$ anyfarm covere$ by Sections 6 an$ 44 hereof is hereby man$ate$ to e,ecute within ninety !5;" $ays from theeffectivity of this Act' a pro$uction(sharing plan' un$er gui$elines prescribe$ by the appropriate governmentagency#

7othing herein shall be construe$ to sanction the $iminution of any benefits such as salaries' bonuses'

leaves an$ working con$itions grante$ to the employee(beneficiaries un$er e,isting laws' agreements' an$voluntary practice by the enterprise' nor shall the enterprise an$ its employee(beneficiaries be prevente$from entering into any agreement with terms more favorable to the latter#

C(AP!ER ")Registr/tion

#ection 14. Registration of Landowners. Dithin one hun$re$ eighty !46;" $ays from the effectivity ofthis Act' all persons' natural or %uri$ical' inclu$ing government entities' that own or claim to own agriculturallan$s' whether in their names or in the name of others' e,cept those who have alrea$y registere$ pursuantto /,ecutive .r$er 7o# 885' who shall be entitle$ to such incentives as may be provi$e$ for the ARC'

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shall file a sworn statement in the proper assessor*s office in the form to be prescribe$ by the 1AR' statingthe following information:

!a" the $escription an$ area of the property9

!b" the average gross income from the property for at least three !2" years9

!c" the names of all tenants an$ farmworkers therein9

!$" the crops plante$ in the property an$ the area covere$ by each crop as of Eune 4' 456=9!e" the terms of mortgages' lease' an$ management contracts subsisting as of Eune 4' 456=' an$

!f" the latest $eclare$ market value of the lan$ as $etermine$ by the city or provincial assessor#

#ection 15. Registration of &eneficiaries. The 1AR in coor$ination with the +arangay AgrarianReform Committee !+ARC" as organi&e$ in this Act' shall register all agricultural lessees' tenants an$farmworkers who are )ualifie$ to be beneficiaries of the CAR# These potential beneficiaries with theassistance of the +ARC an$ the 1AR shall provi$e the following $ata:

!a" names an$ members of their imme$iate farm househol$9

!b" owners or a$ministrators of the lan$s they work on an$ the length of tenurial relationship9

!c" location an$ area of the lan$ they work9

!$" crops plante$9 an$

!e" their share in the harvest or amount of rental pai$ or wages receive$#

A copy of the registry or list of all potential CAR beneficiaries in the barangay shall be poste$ in thebarangay hall' school or other public buil$ings in the barangay where it shall be open to inspection by thepublic at all reasonable hours#

C(AP!ER )+/n Acuisition

#ection 16. Procedure for Ac'uisition of Private Lands. -or purposes of ac)uisition of private lan$s'the following proce$ures shall be followe$:

!a" After having i$entifie$ the lan$' the lan$owners an$ the beneficiaries' the 1AR shall sen$ its

notice to ac)uire the lan$ to the owners thereof' by personal $elivery or registere$ mail' an$ postthe same in a conspicuous place in the municipal buil$ing an$ barangay hall of the place where theproperty is locate$# Sai$ notice shall contain the offer of the 1AR to pay a correspon$ing value inaccor$ance with the valuation set forth in Sections 4=' 46' an$ other pertinent provisions hereof#

!b" Dithin thirty !2;" $ays from the $ate of receipt of written notice by personal $elivery or registere$mail' the lan$owner' his a$ministrator or representative shall inform the 1AR of his acceptance orre%ection of the offer#

!c" If the lan$owner accepts the offer of the 1AR' the 0an$ +ank of the hilippines !0+" shall paythe lan$owner the purchase price of the lan$ within thirty !2;" $ays after he e,ecutes an$ $elivers a$ee$ of transfer in favor of the government an$ surren$ers the Certificate of Title an$ othermuniments of title#

!$" In case of re%ection or failure to reply' the 1AR shall con$uct summary a$ministrativeprocee$ings to $etermine the compensation for the lan$ re)uiring the lan$owner' the 0+ an$ otherintereste$ parties to submit evi$ence as to the %ust compensation for the lan$' within fifteen !4

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Transfer Certificate of Title !TCT" in the name of the Republic of the hilippines# The 1AR shallthereafter procee$ with the re$istribution of the lan$ to the )ualifie$ beneficiaries#

!f" Any party who $isagrees with the $ecision may bring the matter to the court of proper %uris$ictionfor final $etermination of %ust compensation#

C(AP!ER )"Copens/tion

#ection 17. Determination of (ust Compensation. In $etermining %ust compensation' the cost ofac)uisition of the lan$' the current value of the like properties' its nature' actual use an$ income' the swornvaluation by the owner' the ta, $eclarations' an$ the assessment ma$e by government assessors shall beconsi$ere$# The social an$ economic benefits contribute$ by the farmers an$ the farmworkers an$ by theovernment to the property as well as the non(payment of ta,es or loans secure$ from any governmentfinancing institution on the sai$ lan$ shall be consi$ere$ as a$$itional factors to $etermine its valuation#

#ection 1. )aluation and !ode of Compensation. The 0+ shall compensate the lan$owner in suchamounts as may be agree$ upon by the lan$owner an$ the 1AR an$ the 0+' in accor$ance with thecriteria provi$e$ for in Sections 4@ an$ 4=' an$ other pertinent provisions hereof' or as may be finally$etermine$ by the court' as the %ust compensation for the lan$#

The compensation shall be pai$ on one of the following mo$es' at the option of the lan$owner:

!4" Cash payment' un$er the following terms an$ con$itions9

!a" -or lan$s above fifty !

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bon$s were pai$ are situate$9

!ii" Ac)uisition of shares of stock of government(owne$ or (controlle$ corporations orshares of stocks owne$ by the government in private corporations9

!iii" Substitution for surety or bail bon$s for the provisional release of accuse$persons' or performance bon$s9

!iv" Security for loans with any government financial institution' provi$e$ the

procee$s of the loans shall be investe$ in an economic enterprise' preferably in asmall(an$ me$ium(scale in$ustry' in the same province or region as the lan$ forwhich the bon$s are pai$9

!v" ayment for various ta,es an$ fees to government9 provi$e$' that the use ofthese bon$s for these purposes will be limite$ to a certain percentage of theoutstan$ing balance of the financial instruments: provi$e$' further' that the ARCshall $etermine the percentage mentione$ above9

!vi" ayment for tuition fees of the imme$iate family of the original bon$hol$er ingovernment universities' colleges' tra$e schools' an$ other institutions9

!vii" ayment for fees of the imme$iate family of the original bon$hol$er ingovernment hospitals9 an$

!viii" Such other uses as the ARC may from time to time allow#

In case of e,traor$inary inflation' the ARC shall take appropriate measures to protect the economy#

#ection 19. ncentives for )oluntar* +ffers for Sales. 0an$owners' other than banks an$ otherfinancial institutions' who voluntarily offer their lan$s for sale shall be entitle$ to an a$$itional five percent!

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same municipality in the following or$er of priority:

!a" agricultural lessees an$ share tenants9

!b" regular farmworkers9

!c" seasonal farmworkers9

!$" other farmworkers9

!e" actual tillers or occupants of public lan$s9

!f" collectives or cooperatives of the above beneficiaries9 an$

!g" others $irectly working on the lan$#

rovi$e$' however' that the chil$ren of lan$owners who are )ualifie$ un$er Section @ of this Act shall begiven preference in the $istribution of the lan$ of their parents: an$ provi$e$' further' that actual tenant(tillers in the lan$hol$ings shall not be e%ecte$ or remove$ therefrom#

+eneficiaries un$er resi$ential 1ecree 7o# 8= who have culpably sol$' $ispose$ of' or aban$one$ theirlan$ are $is)ualifie$ to become beneficiaries un$er this rogram#

A basic )ualification of a beneficiary shall be his willingness' aptitu$e' an$ ability to cultivate an$ make thelan$ as pro$uctive as possible# The 1AR shall a$opt a system of monitoring the recor$ or performance of

each beneficiary' so that any beneficiary guilty of negligence or misuse of the lan$ or any support e,ten$e$to him shall forfeit his right to continue as such beneficiary# The 1AR shall submit perio$ic reports on theperformance of the beneficiaries to the ARC#

If' $ue to the lan$owner*s retention rights or to the number of tenants' lessees' or workers on the lan$'there is not enough lan$ to accommo$ate any or some of them' they may be grante$ ownership of otherlan$s available for $istribution un$er this Act' at the option of the beneficiaries#

-armers alrea$y in place an$ those not accommo$ate$ in the $istribution of privately(owne$ lan$s will begiven preferential rights in the $istribution of lan$s from the public $omain#

#ection 2. Distri,ution Limit. 7o )ualifie$ beneficiary may own more than three !2" hectares ofagricultural lan$#

#ection 4.Award to &eneficiaries. The rights an$ responsibilities of the beneficiary shall commence

from the time the 1AR makes an awar$ of the lan$ to him' which awar$ shall be complete$ within onehun$re$ eighty !46;" $ays from the time the 1AR takes actual possession of the lan$# .wnership of thebeneficiary shall be evi$ence$ by a Certificate of 0an$ .wnership Awar$' which shall contain therestrictions an$ con$itions provi$e$ for in this Act' an$ shall be recor$e$ in the Register of 1ee$sconcerne$ an$ annotate$ on the Certificate of Title#

#ection 5.Award Ceilings for &eneficiaries. +eneficiaries shall be awar$e$ an area not e,cee$ingthree !2" hectares which may cover a contiguous tract of lan$ or several parcels of lan$ cumulate$ up tothe prescribe$ awar$ limits#

-or purposes of this Act' a lan$less beneficiary is one who owns less than three !2" hectares of agriculturallan$#

The beneficiaries may opt for collective ownership' such as co(ownership or farmers cooperative or some

other form of collective organi&ation: provi$e$' that the total area that may be awar$e$ shall not e,cee$ thetotal number of co(owners or member of the cooperative or collective organi&ation multiplie$ by the awar$limit above prescribe$' e,cept in meritorious cases as $etermine$ by the ARC# Title to the property shallbe issue$ in the name of the co(owners or the cooperative or collective organi&ation as the case may be#

#ection 6. Pa*ment ,* &eneficiaries. 0an$s awar$e$ pursuant to this Act shall be pai$ for by thebeneficiaries to the 0+ in thirty !2;" annual amorti&ations at si, percent !@" interest per annum# Thepayments for the first three !2" years after the awar$ may be at re$uce$ amounts as establishe$ by theARC: provi$e$' that the first five !

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accor$ingly is not $ue to the beneficiary*s fault' the 0+ may re$uce the interest rate or re$uce the principalobligations to make the repayment affor$able#

The 0+ shall have a lien by way of mortgage on the lan$ awar$e$ to the beneficiary9 an$ this mortgagemay be foreclose$ by the 0+ for non(payment of an aggregate of three !2" annual amorti&ations# The 0+shall a$vise the 1AR of such procee$ings an$ the latter shall subse)uently awar$ the forfeite$lan$hol$ings to other )ualifie$ beneficiaries# A beneficiary whose lan$' as provi$e$ herein' has beenforeclose$ shall thereafter be permanently $is)ualifie$ from becoming a beneficiary un$er this Act#

#ection 7. Transfera,ilit* of Awarded Lands. 0an$s ac)uire$ by beneficiaries un$er this Act may notbe sol$' transferre$ or conveye$ e,cept through here$itary succession' or to the government' or the 0+'or to other )ualifie$ beneficiaries for a perio$ of ten !4;" years: provi$e$' however' that the chil$ren or thespouse of the transferor shall have a right to repurchase the lan$ from the government or 0+ within aperio$ of two !8" years# 1ue notice of the availability of the lan$ shall be given by the 0+ to the +arangay

Agrarian Reform Committee !+ARC" of the barangay where the lan$ is situate$# The rovincial AgrarianReform Coor$inating Committee !ARCC.M" as herein provi$e$' shall' in turn' be given $ue notice thereofby the +ARC#

If the lan$ has not yet been fully pai$ by the beneficiary' the rights to the lan$ may be transferre$ orconveye$' with prior approval of the 1AR' to any heir of the beneficiary or to any other beneficiary who' asa con$ition for such transfer or conveyance' shall cultivate the lan$ himself# -ailing compliance herewith'the lan$ shall be transferre$ to the 0+ which shall give $ue notice of the availability of the lan$ in themanner specifie$ in the imme$iately prece$ing paragraph#

In the event of such transfer to the 0+' the latter shall compensate the beneficiary in one lump sum for theamounts the latter has alrea$y pai$' together with the value of improvements he has ma$e on the lan$#

#ection . Standing Crops at the Time of Ac'uisition. The lan$owner shall retain his share of anystan$ing crops unharveste$ at the time the 1AR shall take possession of the lan$ un$er Section 4@ of the

Act' an$ shall be given a reasonable time to harvest the same#

C(AP!ER )"""Corpor/te */rs

#ection 9. $arms +wned or +perated ,* Corporations or +ther &usiness Associations. In thecase of farms owne$ or operate$ by corporations or other business associations' the following rules shall

be observe$ by the ARC:In general' lan$s shall be $istribute$ $irectly to the in$ivi$ual worker(beneficiaries#

In case it is not economically feasible an$ soun$ to $ivi$e the lan$' then it shall be owne$ collectively bythe workers* cooperative or association which will $eal with the corporation or business association# >ntil anew agreement is entere$ into by an$ between the workers* cooperative or association an$ the corporationor business association' any agreement e,isting at the time this Act takes effect between the former an$the previous lan$owner shall be respecte$ by both the workers* cooperative or association an$ thecorporation or business association#

#ection 20. /omelots and $armlots for !em,ers of Cooperatives . The in$ivi$ual members of thecooperatives or corporations mentione$ in the prece$ing section shall be provi$e$ with homelots an$ smallfarmlots for their family use' to be taken from the lan$ owne$ by the cooperative or corporation#

#ection 21. Corporate Landowners. Corporate lan$owners may voluntarily transfer ownership overtheir agricultural lan$hol$ings to the Republic of the hilippines pursuant to Section 8; hereof or to)ualifie$ beneficiaries' un$er such terms an$ con$itions' consistent with this Act' as they may agree upon'sub%ect to confirmation by the 1AR#

>pon certification by the 1AR' corporations owning agricultural lan$s may give their )ualifie$ beneficiariesthe right to purchase such proportion of the capital stock of the corporation that the agricultural lan$'actually $evote$ to agricultural activities' bears in relation to the company*s total assets' un$er such termsan$ con$itions as may be agree$ upon by them#n no case shall the compensation receive$ by the workersat the time the shares of stocks are $istribute$ be re$uce$# The same principle shall be applie$ toassociations' with respect to their e)uity or participation#

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Corporations or associations which voluntarily $ivest a proportion of their capital stock' e)uity orparticipation in favor of their workers or other )ualifie$ beneficiaries un$er this section shall be $eeme$ tohave complie$ with the provisions of the Act: provi$e$' that the following con$itions are complie$ with:

a" In or$er to safeguar$ the right of beneficiaries who own shares of stocks to $ivi$en$s an$ otherfinancial benefits' the books of the corporation or association shall be sub%ect to perio$ic au$it bycertifie$ public accountants chosen by the beneficiaries9

b" Irrespective of the value of their e)uity in the corporation or association' the beneficiaries shall beassure$ of at least one !4" representative in the boar$ of $irectors' or in a management ore,ecutive committee' if one e,ists' of the corporation or association9 an$

c" Any shares ac)uire$ by such workers an$ beneficiaries shall have the same rights an$ featuresas all other shares#

$" Any transfer of shares of stocks by the original beneficiaries shall be voi$ ab initio unless sai$transaction is in favor of a )ualifie$ an$ registere$ beneficiary within the same corporation#

If within two !8" years from the approval of this Act' the lan$ or stock transfer envisione$ above is not ma$eor reali&e$ or the plan for such stock $istribution approve$ by the ARC within the same perio$' theagricultural lan$ of the corporate owners or corporation shall be sub%ect to the compulsory coverage of this

Act#

#ection 2. Production%Sharing. en$ing final lan$ transfer' in$ivi$uals or entities owning' or operatingun$er lease or management contract' agricultural lan$s are hereby man$ate$ to e,ecute a pro$uction(sharing plan with their farm workers or farmworkers* reorgani&ation' if any' whereby three percent !2" ofthe gross sales from the pro$uction of such lan$s are $istribute$ within si,ty !@;" $ays of the en$ of thefiscal year as compensation to regular an$ other farmworkers in such lan$s over an$ above thecompensation they currently receive: provi$e$' that these in$ivi$uals or entities reali&e gross sales ine,cess of five million pesos per annum unless the 1AR' upon proper application' $etermines a lowerceiling#

In the event that the in$ivi$ual or entity reali&es a profit' an a$$itional ten percent !4;" of the net profitafter ta, shall be $istribute$ to sai$ regular an$ other farmworkers within ninety !5;" $ays of the en$ of thefiscal year#

To forestall any $isruption in the normal operation of lan$s to be turne$ over to the farmworker(beneficiaries

mentione$ above' a transitory perio$' the length of which shall be $etermine$ by the 1AR' shall beestablishe$#

1uring this transitory perio$' at least one percent !4" of the gross sales of the entity shall be $istribute$ tothe managerial' supervisory an$ technical group in place at the time of the effectivity of this Act' ascompensation for such transitory managerial an$ technical functions as it will perform' pursuant to anagreement that the farmworker(beneficiaries an$ the managerial' supervisory an$ technical group mayconclu$e' sub%ect to the approval of the 1AR#

#ection 22. Pa*ment of Shares of Cooperative or Association. Shares of a cooperative orassociation ac)uire$ by farmers(beneficiaries or workers(beneficiaries shall be fully pai$ for in an amountcorrespon$ing to the valuation as $etermine$ in the imme$iately succee$ing section# The lan$owner an$the 0+ shall assist the farmers(beneficiaries an$ workers(beneficiaries in the payment for sai$ shares by

provi$ing cre$it financing##ection 24. )aluation of Lands. A valuation scheme for the lan$ shall be formulate$ by the ARC'taking into account the factors enumerate$ in Section 4=' in a$$ition to the nee$ to stimulate the growth ofcooperatives an$ the ob%ective of fostering responsible participation of the workers(beneficiaries in thecreation of wealth#

In the $etermination of price that is %ust not only to the in$ivi$uals but to society as well' the ARC shallconsult closely with the lan$owner an$ the workers(beneficiaries#

In case of $isagreement' the price as $etermine$ by the ARC' if accepte$ by the workers(beneficiaries'shall be followe$' without pre%u$ice to the lan$owner*s right to petition the Special Agrarian Court to resolve

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the issue of valuation#

C(AP!ER "#upport #er3ices

#ection 25. Creation of Support Services +ffice. There is hereby create$ the .ffice of SupportServices un$er the 1AR to be hea$e$ by an >n$ersecretary#

The .ffice shall provi$e general support an$ coor$inative services in the implementation of the program

particularly in carrying out the provisions of the following services to farmer(beneficiaries an$ affecte$lan$owners:

4" Irrigation facilities' especially secon$ crop or $ry season irrigation facilities9

8" Infrastructure $evelopment an$ public works pro%ects in areas an$ settlements that come un$eragrarian reform' an$ for this purpose' the preparation of the physical $evelopment plan of suchsettlements provi$ing suitable barangay sites' potable water an$ power resources' irrigationsystems an$ other facilities for a soun$ agricultural $evelopment plan9

2" overnment subsi$ies for the use of irrigation facilities9

?" rice support an$ guarantee for all agricultural pro$uce9

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at all stages of lan$ reform#

The +agong Filusang Fabuhayan sa Faunlaran !+FFF" Secretariat shall be transferre$ an$ attache$ to the0+' for its supervision inclu$ing all its applicable an$ e,isting fun$s' personnel' properties' e)uipment an$recor$s#

Misuse or $iversion of the financial an$ support services herein provi$e$ shall result in sanctions againstthe beneficiary guilty thereof' inclu$ing the forfeiture of the lan$ transferre$ to him or lesser sanctions as

may be provi$e$ by the ARC' without pre%u$ice to criminal prosecution##ection 2. Support Services to Landowners. The ARC with the assistance of such othergovernment agencies an$ instrumentalities as it may $irect' shall provi$e lan$owners affecte$ by the CARan$ prior agrarian reform programs with the following services:

!a" Investment information financial an$ counseling assistance9

!b" -acilities' programs an$ schemes for the conversion or e,change of bon$s issue$ for paymentof the lan$s ac)uire$ with stocks an$ bon$s issue$ by the 7ational overnment' the Central +ankan$ other government institutions an$ instrumentalities9

!c" Marketing of 0+ bon$s' as well as promoting the marketability of sai$ bon$s in tra$itional an$non(tra$itional financial markets an$ stock e,changes9 an$

!$" .ther services $esigne$ to utili&e pro$uctively the procee$s of the sale of such lan$s for ruralin$ustriali&ation#

A lan$owner who invests in rural(base$ in$ustries shall be entitle$ to the incentives grante$ to a registere$enterprise engage$ in a pioneer or preferre$ area of investment as provi$e$ for in the .mnibus InvestmentCo$e of 456=' or to such other incentives as the ARC' the 0+' or other government financial institutionsmay provi$e#

The 0+ shall re$eem a lan$owner*s 0+ bon$s at face value' provi$e$ that the procee$s thereof shall beinveste$ in a +.I(registere$ company or in any agri(business or agro(in$ustrial enterprise in the regionwhere the lan$owner has previously ma$e investments' to the e,tent of thirty percent !2;" of the facevalue of sai$ 0+ bon$s' sub%ect to gui$elines that shall be issue$ by the 0+#

#ection 29. Land Consolidation. The 1AR shall carry out lan$ consoli$ation pro%ects to promote e)ual$istribution of lan$hol$ings' to provi$e the nee$e$ infrastructures in agriculture' an$ to conserve soil fertility

an$ prevent erosion#

C(AP!ER #peci/l Are/s of Concern

#ection 40. Special Areas of Concern. As an integral part of the Comprehensive Agrarian Reformrogram' the following principles in these special areas of concern shall be observe$:

!4" Subsistence Fishing# Small fisherfolk' inclu$ing seawee$ farmers' shall be assure$ of greateraccess to the utili&ation of water resources#

!8" Logging and Mining Concessions# Sub%ect to the re)uirement of a balance$ ecology an$conservation of water resources' suitable areas' as $etermine$ by the 1epartment of /nvironmentan$ 7atural Resources !1/7R"' in logging' mining an$ pasture areas' shall be opene$ up for

agrarian settlements whose beneficiaries shall be re)uire$ to un$ertake reforestation an$conservation pro$uction metho$s# Sub%ect to e,isting laws' rules an$ regulations' settlers an$members of tribal communities shall be allowe$ to en%oy an$ e,ploit the pro$ucts of the forest otherthan timer within the logging concessions#

!2" Sparsely ccupied Public !gricultural Lands# Sparsely occupie$ agricultural lan$s of thepublic $omain shall be surveye$' proclaime$ an$ $evelope$ as farm settlements for )ualifie$lan$less people base$ on an organi&e$ program to ensure their or$erly an$ early $evelopment#

Agricultural lan$ allocations shall be ma$e for i$eal family(si&e farms as $etermine$ by the ARC#ioneers an$ other settlers shall be treate$ e)ually in every respect#

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Sub%ect to the prior rights of )ualifie$ beneficiaries' uncultivate$ lan$s of the public $omain shall bema$e available on a lease basis to intereste$ an$ )ualifie$ parties# arties who will engage$ in the$evelopment of capital(intensive' tra$itional or pioneering crops shall be given priority#

The lease perio$' which shall not be more than a total of fifty !nless otherwise $irecte$ byARC' the /C.M may meet an$ $eci$e on any an$ all matters in between meetings of the ARC:provi$e$' however' that its $ecisions must be reporte$ to the ARC imme$iately an$ not later than the ne,tmeeting#

#ection 42. Secretariat. A ARC Secretariat is hereby establishe$ to provi$e general support an$coor$inative services such as inter(agency linkages9 program an$ pro%ect appraisal an$ evaluation an$general operations monitoring for the ARC#

The Secretariat shall be hea$e$ by the Secretary of Agrarian Reform who shall be assiste$ by an

>n$ersecretary an$ supporte$ by a staff whose composition shall be $etermine$ by the ARC /,ecutiveCommittee an$ whose compensation shall be chargeable against the Agrarian Reform -un$# All officersan$ employees of the Secretariat shall be appointe$ by the Secretary of Agrarian Reform#

#ection 44. Provincial Agrarian Reform Coordinating Committee 0PARCC+!. A rovincial AgrarianReform Coor$inating Committee !ARCC.M" is hereby create$ in each province' compose$ of aChairman' who shall be appointe$ by the resi$ent upon the recommen$ation of the /C.M' therovincial Agrarian Reform .fficer as /,ecutive .fficer' an$ one representative each from the 1epartmentsof Agriculture' an$ of /nvironment an$ 7atural Resources an$ from the 0+' one representative each frome,isting farmers* organi&ations' agricultural cooperatives an$ non(governmental organi&ations in theprovince9 two representatives from lan$owners' at least one of whom shall be a pro$ucer representing the

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principal crop of the province' an$ two representatives from farmer an$ farmworker(beneficiaries' at leastone of whom shall be a farmer or farmworker representing the principal crop of the province' as members:provi$e$' that in areas where there are cultural communities' the latter shall likewise have onerepresentative#

The ARCC.M shall coor$inate an$ monitor the implementation of the CAR in the province#t shallprovi$e information on the provisions of the CAR' gui$elines issue$ by the ARC an$ on the progress ofthe CAR in the province#

#ection 45. Province%,*%Province mplementation. The ARC shall provi$e the gui$elines for aprovince(by(province implementation of the CAR# The ten(year program of $istribution of public an$private lan$s in each province shall be a$%uste$ from year by the province*s ARCC.M in accor$ance withthe level of operations previously establishe$ by the ARC' in every case ensuring that support servicesare available or have been programme$ before actual $istribution is effecte$#

#ection 46. &aranga* Agrarian Reform Committee 0&ARC. >nless otherwise provi$e$ in this Act'the provisions of /,ecutive .r$er 7o# 885 regar$ing the organi&ation of the +arangay Agrarian ReformCommittee !+ARC" shall be in effect#

#ection 47. $unctions of the &ARC. In a$$ition to those provi$e$ in /,ecutive .r$er 7o# 885' the+ARC shall have the following functions:

!a" Me$iate an$ conciliate between parties involve$ in an agrarian $ispute inclu$ing matters relate$to tenurial an$ financial arrangements9

!b" Assist in the i$entification of )ualifie$ beneficiaries an$ lan$owners within the barangay9

!c" Attest to the accuracy of the initial parcellary mapping of the beneficiary*s tillage9

!$" Assist )ualifie$ beneficiaries in obtaining cre$it from len$ing institutions9

!e" Assist in the initial $etermination of the value of the lan$9

!f" Assist the 1AR representatives in the preparation of perio$ic reports on the CARimplementation for submission to the 1AR9

!g" Coor$inate the $elivery of support services to beneficiaries9 an$

!h" erform such other functions as may be assigne$ by the 1AR#

!8" The +ARC shall en$eavor to me$iate' conciliate an$ settle agrarian $isputes lo$ge$ before it withinthirty !2;" $ays from its taking cogni&ance thereof#f after the lapse of the thirty $ay perio$' it is unable tosettle the $ispute' it shall issue a certificate of its procee$ings an$ shall furnish a copy thereof upon theparties within seven !=" $ays after the e,piration of the thirty($ay perio$#

#ection 4. Legal Assistance. The +ARC or any member thereof may' whenever necessary in thee,ercise of any of its functions hereun$er' seek the legal assistance of the 1AR an$ the provincial' city' ormunicipal government#

#ection 49. Rules and Regulations. The ARC an$ the 1AR shall have the power to issue rules an$regulations' whether substantive or proce$ural' to carry out the ob%ects an$ purposes of this Act# Sai$ rulesshall take effect ten !4;" $ays after publication in two !8" national newspapers of general circulation#

C(AP!ER ""Ainistr/ti3e A8uic/tion

#ection 50. .uasi%(udicial Powers of the DAR. The 1AR is hereby veste$ with the primary%uris$iction to $etermine an$ a$%u$icate agrarian reform matters an$ shall have e,clusive original%uris$iction over all matters involving the implementation of agrarian reform e,cept those falling un$er thee,clusive %uris$iction of the 1epartment of Agriculture !1A" an$ the 1epartment of /nvironment an$ 7aturalResources !1/7R"#

It shall not be boun$ by technical rules of proce$ure an$ evi$ence but shall procee$ to hear an$ $eci$e allcases' $isputes or controversies in a most e,pe$itious manner' employing all reasonable means toascertain the facts of every case in accor$ance with %ustice an$ e)uity an$ the merits of the case# Towar$

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this en$' it shall a$opt a uniform rule of proce$ure to achieve a %ust' e,pe$itious an$ ine,pensive$etermination for every action or procee$ing before it#

It shall have the power to summon witnesses' a$minister oaths' take testimony' re)uire submission ofreports' compel the pro$uction of books an$ $ocuments an$ answers to interrogatories an$ issuesubpoena' an$ subpoena $uces tecum' an$ enforce its writs through sheriffs or other $uly $eputi&e$officers#t shall likewise have the power to punish $irect an$ in$irect contempts in the same manner an$sub%ect to the same penalties as provi$e$ in the Rules of Court#

Responsible farmer lea$ers shall be allowe$ to represent themselves' their fellow farmers' or theirorgani&ations in any procee$ings before the 1AR: provi$e$' however' that when there are two or morerepresentatives for any in$ivi$ual or group' the representatives shoul$ choose only one among themselvesto represent such party or group before any 1AR procee$ings#

7otwithstan$ing an appeal to the Court of Appeals' the $ecision of the 1AR shall be imme$iately e,ecutory#

#ection 51. $inalit* of Determination. Any case or controversy before it shall be $eci$e$ within thirty!2;" $ays after it is submitte$ for resolution# .nly one !4" motion for reconsi$eration shall be allowe$# Anyor$er' ruling or $ecision shall be final after the lapse of fifteen !4

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Agrarian Courts' unless mo$ifie$ by this Act#

The Special Agrarian Courts shall $eci$e all appropriate cases un$er their special %uris$iction within thirty!2;" $ays from submission of the case for $ecision#

#ection 5.Appointment of Commissioners. The Special Agrarian Courts' upon their own initiative orat the instance of any of the parties' may appoint one or more commissioners to e,amine' investigate an$ascertain facts relevant to the $ispute inclu$ing the valuation of properties' an$ to file a written report

thereof with the court##ection 59. +rders of the Special Agrarian Courts. 7o or$er of the Special Agrarian Courts on anyissue' )uestion' matter or inci$ent raise$ before them shall be elevate$ to the appellate courts until thehearing shall have been terminate$ an$ the case $eci$e$ on the merits#

#ection 60.Appeals. An appeal may be taken from the $ecision of the Special Agrarian Courts by filinga petition for review with the Court of Appeals within fifteen !4

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en%oy a preference among its priorities#

C(AP!ER )%ener/l Pro3isions

#ection 65. Conversion of Lands. After the lapse of five !

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!a" The ownership or possession' for the purpose of circumventing the provisions of this Act' ofagricultural lan$s in e,cess of the total retention limits or awar$ ceilings by any person' natural or

%uri$ical' e,cept those un$er collective ownership by farmer(beneficiaries#

!b" The forcible entry or illegal $etainer by persons who are not )ualifie$ beneficiaries un$er this Actto avail themselves of the rights an$ benefits of the Agrarian Reform rogram#

!c" The conversion by any lan$owner of his agricultural lan$ into any non(agricultural use with intent

to avoi$ the application of this Act to his lan$hol$ings an$ to $ispossess his tenant farmers of thelan$ tille$ by them#

!$" The willful prevention or obstruction by any person' association or entity of the implementationof the CAR#

!e" The sale' transfer' conveyance or change of the nature of lan$s outsi$e of urban centers an$city limits either in whole or in part after the effectivity of this Act# The $ate of the registration of the$ee$ of conveyance in the Register of 1ee$s with respect to title$ lan$s an$ the $ate of theissuance of the ta, $eclaration to the transferee of the property with respect to unregistere$ lan$s'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 usufructuaryright over the lan$ he ac)uire$ by virtue of being a beneficiary' in or$er to circumvent the provisionsof this Act#

#ection 74. Penalties. Any person who knowingly or willfully violates the provisions of this Act shall bepunishe$ by imprisonment of not less than one !4" month to not more than three !2" years or a fine of notless than one thousan$ pesos !4';;;#;;" an$ not more than fifteen thousan$ pesos !4

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Republic Act No. 9700 August 7, 009

AN AC! #!REN%!(EN"N% !(E C&'PRE(EN#")E A%RAR"AN RE*&R' PR&%RA' :CARP;,E!EN"N% !(E AC RE*&R'#, A'EN"N% *&R !(E P$RPE CER!A"N PR&)"#"&N# &* REP$=+"CAC! N&. 6657, &!(ER?"#E @N&?N A# !(E C&'PRE(EN#")E A%RAR"AN RE*&R' +A? &*

19, A# A'ENE, AN APPR&PR"A!"N% *$N# !(ERE*&R

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::#ection1.Section 8 of Republic Act 7o# @@

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a$visory or appropriate $ecision(making bo$ies# These rights shall be in$epen$ent of their malerelatives an$ of their civil status#

3The State shall apply the principles of agrarian reform' or stewar$ship' whenever applicable' inaccor$ance with law' in the $isposition or utili&ation of other natural resources' inclu$ing lan$s ofthe public $omain' un$er lease or concession' suitable to agriculture' sub%ect to prior rights'homestea$ rights of small settlers an$ the rights of in$igenous communities to their ancestral lan$s#

3The State may resettle lan$less farmers an$ farm workers in its own agricultural estates' whichshall be $istribute$ to them in the manner provi$e$ by law#

3+y means of appropriate incentives' the State shall encourage the formation an$ maintenance ofeconomic(si&e family farms to be constitute$ by in$ivi$ual beneficiaries an$ small lan$owners#

3The State shall protect the rights of subsistence fishermen' especially of local communities' to thepreferential use of communal marine an$ fishing resources' both inlan$ an$ offshore# It shallprovi$e support to such fishermen through appropriate technology an$ research' a$e)uatefinancial' pro$uction an$ marketing assistance an$ other services# The State shall also protect'$evelop an$ conserve such resources# The protection shall e,ten$ to offshore fishing groun$s ofsubsistence fishermen against foreign intrusion# -ishworkers shall receive a %ust share from theirlabor in the utili&ation of marine an$ fishing resources#

3The State shall be gui$e$ by the principles that lan$ has a social function an$ lan$ ownership hasa social responsibility# .wners of agricultural lan$ have the obligation to cultivate $irectly or throughlabor a$ministration the lan$s they own an$ thereby make the lan$ pro$uctive#

3The State shall provi$e incentives to lan$owners to invest the procee$s of the agrarian reformprogram to promote in$ustriali&ation' employment an$ privati&ation of public sector enterprises#-inancial instruments use$ as payment for lan$s shall contain features that shall enhancenegotiability an$ acceptability in the marketplace#

3The State may lease un$evelope$ lan$s of the public $omain to )ualifie$ entities for the$evelopment of capital(intensive farms' an$ tra$itional an$ pioneering crops especially those fore,ports sub%ect to the prior rights of the beneficiaries un$er this Act#3

#ection .Section 2 of Republic Act 7o# @@

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agriculture# 7o reclassification of forest or mineral lan$s to agricultural lan$s shall beun$ertaken after the approval of this Act until Congress' taking into account ecological'$evelopmental an$ e)uity consi$erations' shall have $etermine$ by law' the specific limitsof the public $omain9

3!b" All lan$s of the public $omain in e,cess of the specific limits as $etermine$ by Congressin the prece$ing paragraph9

3!c" All other lan$s owne$ by the overnment $evote$ to or suitable for agriculture9 an$3!$" All private lan$s $evote$ to or suitable for agriculture regar$less of the agriculturalpro$ucts raise$ or that can be raise$ thereon#

3A comprehensive inventory system in consonance with the national lan$ use plan shall beinstitute$ by the 1epartment of Agrarian Reform !1AR"' in accor$ance with the 0ocal overnmentCo$e' for the purpose of properly i$entifying an$ classifying farmlan$s within one !4"year fromeffectivity of this Act' without pre%u$ice to the implementation of the lan$ ac)uisition an$$istribution#3

#ection 4.There shall be incorporate$ after Section @ of Republic Act 7o# @@

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overnment !C"9 an$ all other lan$s owne$ by the government $evote$ to or suitable foragriculture' which shall be ac)uire$ an$ $istribute$ imme$iately upon the effectivity of this Act' withthe implementation to be complete$ by Eune 2;' 8;489

3hase Two: !a" 0an$s twenty(four !8?" hectares up to fifty !

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$ifference between the area of the lan$ heHshe owns an$ the awar$ ceiling of three !2" hectares:rovi$e$' further' That collective ownership by the farmer beneficiaries shall be sub%ect to Section8< of Republic Act 7o# @@

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ownership awar$' an$ other titles issue$ un$er any agrarian reform program are within thee,clusive an$ original %uris$iction of the Secretary of the 1AR#3

#ection 10.Section 8< of Republic Act So# @@

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not e,hibit the con$itions for collective ownership outline$ above# The 1AR shall con$uct a reviewan$ re$ocumentation of all the collective certificates of lan$ ownership awar$# The 1AR shallprepare a prioriti&e$ list of certificates of lan$ ownership awar$ to be parceli&e$# The parceli&ationshall commence imme$iately upon approval of this Act an$ shall not e,cee$ a perio$ of three !2"years# .nly those e,isting certificates of lan$ ownership awar$ that are collectively farme$ or areoperate$ in an integrate$ manner shall remain as collective#3

#ection 11.Section 8@ of Republic Act 7o# @@

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e,tension perio$ shall be imme$iately set asi$e an$ ma$e available for this purpose: Provided'That the 1AR shall pursue integrate$ lan$ ac)uisition an$ $istribution an$ support services strategyre)uiring a plan to be $evelope$ parallel to the lan$ ac)uisition an$ $istribution process# Theplanning an$ implementation for lan$ ac)uisition an$ $istribution shall be han$(in(han$ with supportservices $elivery: Provided' further' That for the ne,t five !

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implementsH*machineries9 an$ five percent !

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follows:

3S/C# 26# Support Services for Lando+ners# ( The ARC' with the assistance of such othergovernment agencies an$ instrumentalities as it may $irect' shall provi$e lan$owners affecte$ bythe CAR an$ prior agrarian reform programs with the following services:

3!a" Investment information' financial an$ counseling assistance' particularly investmentinformation on government(owne$ an$Hor (controlle$ corporations an$ $isposable assets of

the government in pursuit of national in$ustriali&ation an$ economic in$epen$ence:3!b" -acilities' programs an$ schemes for the conversion or e,change of bon$s issue$ forpayment of the lan$s ac)uire$ with stocks an$ bon$s issue$ by the 7ational overnment'the +S an$ other government institutions an$ instrumentalities9

3!c" Marketing of agrarian reform bon$s' as well as promoting the marketability of sai$bon$s in tra$itional an$ non(tra$itional financial markets an$ stock e,changes: an$Hor

3!$" .ther services $esigne$ t o utili&e pro$uctively the procee$s of the sale of such lan$sfor rural in$ustriali&ation#

3A lan$owner who invests in rural(base$ in$ustries shall be entitle$ to the incentives grante$ to aregistere$ enterprise engage$ in a pioneer or preferre$ area of investment as provi$e$ for in the.mnibus Investment Co$e of 456='or to such other incentives as the ARC' the 0+' or other

government financial institutions shall provi$e#

3The 0+ shall re$eem a lan$owner*s agrarian reform bon$s at face value as an incentive:rovi$e$' That at least fifty percent !

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over all matters involving the implementation of agrarian reform' e,cept those falling un$er thee,clusive %uris$iction of the 1epartment of Agriculture !1A" an$ the 1/7R#

3It shall not be boun$ by technical rules of proce$ure an$ evi$ence but shall procee$ to hear an$$eci$e all cases' $isputes or controversies in a most e,pe$itious manner' employing all reasonablemeans to ascertain the facts of every case in accor$ance with %ustice an$ e)uity an$ the merits ofthe case# Towar$ this en$' it shall a$opt a uniform rule of proce$ure to achieve a %ust' e,pe$itiousan$ ine,pensive $etermination of every action or procee$ing before it#

3It shall have the power to summon witnesses' a$minister oaths' take testimony' re)uire submissionof reports' compel the pro$uction of books an$ $ocuments an$ answers to interrogatories an$issuesubpoena' an$ subpoena duces tecuman$ to enforce its writs through sheriffs or other $uly$eputi&e$ officers# It shall likewise have the power to punish $irect an$ in$irect contempts in thesame manner an$ sub%ect to the same penalties as provi$e$ in the Rules of Court#

3Responsible farmer lea$ers shall be allowe$ to represent themselves' their fellow farmers' or theirorgani&ations in any procee$ings before the 1AR rovi$e$' however' That when there are two ormore representatives for any in$ivi$ual or group' the representatives shoul$ choose only oneamong themselves to represent such party or group before any 1A+ procee$ings#

37otwithstan$ing an appeal to the Court of Appeals' the $ecision of the 1AR shall be imme$iatelye,ecutory e,cept a $ecision or a portion thereof involving solely the issue of %ust compensation#3

#ection 19.Section

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3A$$itional amounts are hereby authori&e$ to be appropriate$ as an$ when nee$e$ to augment theAgrarian Reform -un$ in or$er to fully implement the provisions of this Act $uring the five !

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3-ailure to implement the conversion plan within five !

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@@

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Republic Act 7o# @@

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!Sg$#" 'AR"+>N =. =AR$A>APSecretary eneral

Bouse of Represenatives

!Sg$#" E''A +"R"&RE>E#Secretary of Senate

Approve$: August 7, 009

!Sg$#" %+&R"A 'ACAPA%A+ARR&>&

President of the Philippines