AGRARIAN LAW by Barte INTRODUCTION A. DEFINITIONS AND AND TERMS Reform – presup presuppos poses es that that someth something ing is defecti defective, ve, hence, hence, needs needs reformation and correction.
b. S'are Tenan%y Tenan%y – – under this system of landholding, tillers work the land as sharecroppers entitled to share in the produce of the land. c. Lea!e'o&d Tenan%y – Tenan%y – is a tenurial system which was instituted by .A. &o. $-- %Code of Agrarian eforms* characterized by lessor and lessee relationship which is created either by written or oral agreem agreement ent betwee between n the partie parties s or implie impliedly dly by accepta acceptance nce of benefi benefits ts by the landowne landowner, r, or by an act of cultiva cultivatio tion n thru thru the toleration of the owner. Comment!"
Land Land Reform Reform – deno denote tes s a broa broad d conc concep eptt of conv conven enti tion onal al and and revo revolu luti tion onar ary y meas measur ures es inten intende ded d to corr correc ectt cert certai ain n defec defects ts in the the relati relations onship hip betwee between n landow landowner ner and tiller tiller regard regarding ing their their rights rights and obligations in the cultivation and management of landholding. Agraran Reform – Reform – refers not only to land reform but also embraces a full range range of measur measures es design designed ed to improv improve e the relati relations onship hip betwee between n landowner and tiller, employer and employee, corporate management and stoc stockh khol olde ders rs,, coop cooper erat ativ ives es and and memb member ers, s, and and othe otherr farm farmer ers’ s’ organizations including their economic, social and political relations with the community and the government. Comment!" Under the Comprehensive Agrarian eform !aw of "##$ %.A. &o. ''()*, Agrarian eform is defined as the redistribution of lands, regardless of crops or fruits produced, produced, to farmers and regular farmworkers farmworkers who are landless, irrespective of tenurial arrangement.
AGRARIAN STRUCTURE efers to that comple+ set of relationships within the agricultural sector between tenure structure, structure, production structure and structure and structure for supporting services. services. #. Land Ten$re Ten$re Str$%t$re – Str$%t$re – is a concept that connotes one or more types of land tenure system regulating the rights to ownership and control and usages of land and the duties accompanying such rights. a. Agr%$&t$ra& Tenan%y – Tenan%y – refers to the manner of holding agricultural lands.
!easehold relationship abolished the share tenancy system under the ice hare /enancy Act of "# as amended, 0.1. &o. 2) was issued by then 0resident 0resident 3erdinand 4arcos which aside from upholding upholding the leasehold leasehold relationshi relationship, p, likewise likewise ordained ordained the emancipatio emancipation n of tenant5farme tenant5farmers rs from the bondage bondage of the soil, and considered considered them ipso facto facto owners of the lands they till primarily devoted to rice and corn. 0.1. &o. 2) %/enants 6mancipation 1ecree* likewise fi+ed the retention limit limit for the landowne landownerr an area area not e+ceedin e+ceeding g seven seven %)* hectares hectares,, provided, that such landowner is cultivating or will now cultivate the land, and furthermore, that he does not own other agricultural lands of more than seven %)* hectares. d. Amort(ng Amort(ng O)ner – a tenant tenant5fa 5farme rmerr whose whose status status had been been raised automatically by operation of law from leasehold tenant to that of amortizing owner, who makes repayments of the purchase price of the land he tills to the !and 7ank. e. F$&& O)ner or O)ner*C$&t+ator – – is an amortizing owner %tenant5 farmer* who has completed full payment of his amortization to the !and !and 7ank 7ank of the the 0hil 0hilip ippi pine nes, s, and and is ther theref efor ore e entit entitle led d to a certificate of title under the /orrens /orrens ystem. Comment!" Under .A. &o. $--, as amended by .A. &o. '$#, there are three shifts in the conversion conversion of the tenurial status of tenant5farmer tenant5farmer to full owner, namely namely88 share share tenant tenant to leaseh leasehold older er to amortiz amortizing ing owner owner,, and from from amortizing owner to full owner %owner5cultivator*. An amortizing owner by operation of law %0.1. %0.1. &o. 2)* is entitled to an 6mancipation 0atent which serves as a farmholder’s provisional title of
ownership to the land upon completion of his amortization repayments to the !and 7ank, or to the !andowner in cases of farmers who have been amortizing their lands with the landowner. f.
O)ner*C$&t+ator – is the term applied to a tenant – farmer who has attained the status of full owner and 9ualified beneficiary under the Agrarian eform !aw of the 0hilippines.
,. -rod$%ton Str$%t$re – is a concept that refers to the use of the land, nature and method of farm operation, and the process of production.
. Str$%t$re for S$//ortng Ser+%e! – is an agrarian reform measure designed to help the tenant – tiller in the availment of credit facilities, marketing of his products, supplying of seeds, insecticides, fertilizers, irrigation, storage, processing and other technical assistance : services in direct bearing to reforms of tenure and production structures.
0ISTORICAL BAC1GROUND 6ven before the paniard came into these ;sland, the idea of private ownership of land was not prevalent. !and was commonly owned by the community or barangay, cultivated communally or individually by members of the barangay.
full employment, a rising standard of living, and an improve 9uality of life for all. /he state shall promote a comprehensive rural development and agrarian reform. /he tate shall, by law, undertake an agrarian reform program founded on the right of the farmers and regular farmworkers, who are landless, to own directly or collectively the lands they till or, in the case of other farmworkers, to receive a =ust share of the fruits thereof. %Art. >;;;, ocial ?ustice and @uman ights, ec. -*.
CONTEM-ORANEOUS -RECE-TS AND MEASURES ;n order to implement the "#$) Constitution, Congress passed the Comprehensive Agrarian eform !aw of "#$$. %.A. &. ''()* which was signed into law by the 0resident of the 0hillippines on ?une "B, "#$$, and took effect on ?une "(, "#$$. /his is the main law on agrarian reform in the 0hilippines today. /he CA! provides that all other laws on agrarian reform not contrary or inconsistent with the provisions of this Act shall have suppletory effect.
LAND REFORM MEASURES RETRACED Treaty of -ar! 2#3435 – the confiscation of friar lands and distributed among peasants by the independent government of 4alolos during the 0hilippine evolution. -'&//ne B&& 2#46,5 – !imited private individual landholdings to "' hectares, and corporate landholdings to ",B2- hectares. Land Reg!traton! A%t 2#46,5 – !andowners were re9uired to register their landholdings and ac9uire /orrens titles to land properties. Frar Land A%t – ;nstituted transfer of friar lands to the tenants to diffuse the peasant unrest.
CONSTITUTIONAL MANDATES ON AGRARIAN REFORM /he state shall promote a =ust and dynamic social order that will free the people from poverty through policies ade9uate social services, promote
R%e S'are Tenan%y A%t 2-$b&% A%t No. 76875 * which provided for a (B5(B sharing of the crop, an interest rte ceiling of "B percent per crop year, and safeguards against arbitrary dismissal of tenants by landlords.
Common)ea&t' A%t.No. ,93 of #43 – to buy farms and large estates for subletting to bonafide occupants with an option to buy, thru the &ational !and ettlement Administration %&!A*.
Re/$b&% A%t No. :34 2Code of Agraran Reform!5 – an improvement of .A. &o. $--, this amendatory Act featured the creation of the 1epartment of Agrarian eforms %1A*.
S$gar Cane Tenan%y Contra%t! A%t. 2A%t. No. 7##5 – makes it a duty of the sugar central to e+hibit to the tenant the receipts of the number of tons milled by the landowner thereat.
Agraran Reform S/e%a& F$nd A%t 2Re/. A%t. No. :465 – provided for a special account and financial support for the Agrarian eform 0rogram of the government.
Common)ea&t' A%t. No. #6 – created the Court of ;ndustrial elations %C;* which e+ercised =urisdiction over disputes arising from relationship between agricultural workers and landowners.
-re!denta& De%ree No. , – declaring the entire nation as a land reform area.
Common)ea&t' A%t. No. ,# – deals with the right to form legitimate labor organizations and to enter into collective bargaining agreements between management and labor. Common)ea&t' A%t No. #93 – which improved the provision of Act &o. -B(- the ice hare /enancy Act, giving more teeth and protection to the rights of tenants of agricultural lands. Re/$b&% A%t. No. 7 – amended certain ections of the ice hare /enancy Act providing for a )B – B crop – sharing method. Re/$b&% A%t No. ##:6 – established the &ational esettlement and ehabilitation Administration %&AA* of landless dissidents and other landless farmers. Re/$b&% A%t No. ##44 %Agricultural /enancy Act* – infused an added boost to the tenurial rights of tenant – tiller. Land Reform A%t 2R.A. No. #766; #4885 5 guaranteed the e+propriation of all tenanted landed estates. ;t set a retention limit of BB hectares for individually – owned estates, and 'BB hectares for corporate – owned estates. Re/$b&% A%t. No. #,:9 – An Act Creating the Court of Agrarian elations to try and decide all matters arising from the relationship of persons in the cultivation and use of agricultural lands. Re/$b&% A%t. No. 377 – marked the abolition of share tenancy and : or the system of share – cropping between landowner and tenant, and the automatic conversion of share tenants into leaseholders.
-re!denta& De%ree No. ,9 – decreeing the emancipation of the tenants, transferring to them the ownership of the land they till. -ro%&amaton No. ## – ;nstituting a comprehensive agrarian reform program which covers, all public and private agricultural lands as provided in the Constitution. E
A. AGRICULTURAL LAND REFORM CODE 2Re/. A%t. No. 3775 RE-UBLIC ACT No. 377 A$g$!t 3; #4: AN ACT TO ORDAIN T0E AGRICULTURAL LAND REFORM CODE AND TO INSTITUTE LAND REFORMS IN T0E -0ILI--INES...
RE-UBLIC ACT No. 377
AN ACT TO ORDAIN T0E AGRICULTURAL LAND REFORM CODE AND TO INSTITUTE LAND REFORMS IN T0E -0ILI--INES; INCLUDING T0E ABOLITION OF TENANC= AND T0E C0ANNELING OF CA-ITAL INTO INDUSTR=; -RO>IDE FOR T0E NECESSAR= IM-LEMENTING AGENCIES; A--RO-RIATE FUNDS T0EREFOR AND FOR OT0ER -UR-OSES Se%ton #. Title * T'! A%t !'a&& be ?no)n a! t'e Agr%$&t$ra& Land Reform Code. #. -REFATOR= STATEMENTS /he thrust of this legislation is the drastic abolition of share tenancy system. ;t provided for the automatic conversion of the sharecropper to the status of an agricultural lessee, governed by the system of agricultural leasehold which is established either8 a. by agreement of the parties, whether oral or written, or b. by operation of law. /he Agricultural !and eform Code still finds application to the following8 a. areas which hav e not c ome within the operat ion and implementation of 0.1. &o. 2) b. agricultural laborers sub=ect to the provisions of the !abor Code c. organization and operation of the !and 7ank d. provisions on resettlements of farmers e. right to pre5emption and redemption, with respect to land5owner’s retained area, should such landowner decide to sell his tenanted : leased retained area, the tenant has the preferential right to purchase and : or redeem the same in case the land is sold to a third person without the t enant’s knowledge f. right of the tenant : lessee to )(D share from the standing crops
c.
lessee to pay !and 7ank on amortization basis the purchase price of the farmholding /he third shift which converts the status of an amortizaing owner into full owner or owner5cultivator upon full payment of the remaining balance of the amortization.
Se%ton . Composition of Code 5 ". An agricultural leasehold system to replace all e+isting share tenancy systems in agriculture 2. A system of crediting rental as amortization payment on purchase price . A declaration of rights for agricultural labor -. A machinery for the ac9uisition and e9uitable distribution of agricultural land (. An institution to finance the ac9uisition and distribution of agricultural land '. A machinery to e+tend credit and similar assistance to agricultural lessees, amortizing owners5cultivators, owners5cultivator and cooperatives ). A machinery to provide marketing, management and other technical assistance and : or services to agricultural lessees, amortizing owners5cultivators, owner5cultivator, cooperatives $. A machinery for cooperative development #. A department for formulating and implementing pro=ects of agrarian reform "B. An e+panded program of land "". A =udicial system to decide issues arising under this Code. "2. A machinery to provide legal assistance to agricultural lessees, amortizing owners5cultivator, and owners5cultivator.
Re/ayment S%'eme and Credt A!!!tan%e T'ree !'ft! n t'e mode of a%@$!ton a. b.
/he automatic conversion of the status of share tenant to leaseholder characterized by payment of fi+ed rentals /he second shift which is the conversion of the leaseholder to amortizing owner, characterized by the !and 7ank purchase of the property with a concomitant obligation imposed on the tenant5
$r!d%ton on Agraran D!/$te! All agrarian disputes are now under the cognizance of the 1epartment of Agrarian eform thru the Agrarian eform Ad=udication 7oard. /he 1epartment of Agrarian eform Ad=udication 7oard %1AA7* in turn delegates its functions to the respective egional and 0rovincial Ad=udicators of the 1A. Any decision, order, award or ruling of the 1A
on any agrarian dispute, may be brought to the Court of Appeals on certiorari . S/e%a& Agraran Co$rt! Under the present law %.A. &o. ''()* all controversies involving the determination of =ust compensation and prosecution of all criminal offenses arising from violations of the provisions of this Act, fall under the original and e+clusive =urisdiction of pecial Agrarian Courts.
Wor? anma&! – means animals ordinarily employed in a farm enterprise. Agraran d!/$te – means any controversy relating to terms, tenure or condition of employment, or concerning an association or representation of persons in negotiating, maintaining, changing or seeking to arrange terms on conditions of employment. Agr%$&t$ra& o)ner*%$&t+ator – means any person who, personally cultivates his own land.
B$rea$ of Agraran Lega& A!!!tan%e /hey shall be responsible for the development of plans and programs for the e+tension of legal information to farmers e+tension of legal services to them.
Far renta& +a&$e – means the value not in e+cess of allowable depreciation plus 'D interest per annum. In%a/a%ty – means any cause or circumstance which prevents the lessee from fulfilling his contractual and other obligations under the Code.
DEFINITION OF TERMS Mode! of Land Ten$re A&&o)ed $nder R.A. No. 377 Agr%$&t$ra& &and – means land devoted to any growth, including but not limited to crop lands, saltbeds, fishponds, idle land and abandoned land. Agr%$&t$ra& &e!!ee – means a person who by himself and with the aid available from within his immediate farm household, cultivates the land belonging to, or possessed by, another with the latter’s consent.
". Lea!e'o&d !y!tem – characterized by a tenant – farmer personally and actually cultivating the farmholding under a leasehold relationship whereby the lessee pays a fi+ed amount of rental whether in cash or in kind to the lessor. ,. S'are tenan%y
Agr%$&t$ra& &e!!or – means a person, lets or grants to another the cultivation and use of his land for a price certain. Agr%$&t$ra& year – means the period of time re9uired for raising a particular agricultural product. Farm m/&ement! – means hand tools or machineries in a farm enterprise. Immedate farm 'o$!e'o&d 5 means the members of the family of the lessee or lessor and other persons who are dependent upon him for support. -ro+en farm /ra%t%e! – means sound farming practices. -er!ona& %$&t+aton – means cultivation by the lessee or lessor in person.
. O)ner*%$&t+ator!'/ -. Coo/erat+e*%$&t+ator!'/ – which is a form of agrarian relationship among members of a cooperative who work and live on the land as tillers in common. (. Labor admn!traton – which employs laborers and workers on a daily wage basis, and engaged in a large scale plantation farming of permanent crops by their respective managers. 0o) Lea!e'o&d Re&aton ! E!tab&!'ed ". by agreement of the parties 2. by operation of law – implementation of .A. &o. $-- providing for the abolition of share tenancy.
-arte! to Lea!e'o&d Re&aton ". 2.
the landholder the person who personally cultivates the land.
ESSENCE OF LEASE0OLD RELATION ". ;t is essentially personal, in the sense that it cannot be e+ercised by third persons other than the lessor himself, and the lessee who personally cultivates the land 2. ; t has the n at ure o f a n in rem or real relationship, because it imposes a burden upon the land sub=ect of the landholding and continues to e+ist even by the death or incapacity of either party, or the e+piration of the agreement.
W'at t'en %on!tt$te! a! fam&y*!(e farm !o a! to g+e r!e to tenan%y re&aton!'/ Fam&y*!(e farm – an area of farmland that permits efficient use of labor and capital resources of the farm family and will produce an income sufficient to provide a modest standard of living to meet a farm family’s needs for food, clothing, shelter, and education with possible allowance for payment of yearly installments on the land, and reasonable reserves to absorb yearly fluctuations in income. W'at no) ! t'e effe%t of t'e &a) to %$&t+ator*t&&er of a &e!! t'an fam&y*!(e farm!
Ten$ra& Arrangement of Lea!e'o&d
uch landholder5tiller or tiller5sharer, is at most considered as a mere caretaker before the eyes of the law who is not entitled to the security of tenure.
;t makes it a penal offense to e=ect a tenant illegally from his holding e+cept upon approval of the court.
S'o$&d t'e &and'o&dng be !o&d or a&enated to a ne) o)ner; )'at 'a//en! to t'e rg't! and ob&gaton! of t'e tran!feree and '! 'er!
Do%trne on !e%$rty of &and ten$re
/he transferee and his heirs are subrogated to the rights and obligations of the former landowner. @owever, the change of landowner cannot be allowed to raise the status of a mere caretaker or tiller – sharer to that of an agricultural tenant and leaseholder.
ecurity of land tenure Ethe agricultural leasehold relation under this Code, shall not be e+tinguished by mere e+piration of the term or period in the leasehold contract, in case the agricultural lessor sells, alienates of transfers the legal possession of the landholding, the purchaser or transferee thereof shall be subrogated to the rights and substituted to the obligations of the agricultural lessor.F ;n order to possess the status of a de jure tenant, the following essential requisites must concur , to wit8 ". 2. . -. (. '.
the parties are the landowner and the tenant the sub=ect is agricultural land there is consent the purpose is agricultural production there is personal cultivation there is sharing of harvests.
/he absence of one does not make an occupant of a parcel of land or a cultivator thereof, a de =ure tenant, hence cannot invoke the defense of security of tenure.
Ca$!e! for E
. /o take reasonable care of the work animals and farm implements delivered to him by the agricultural lessor, he shall be held responsible and made answerable therefore to the e+tent of the value of the work animals and : or farm implements at the time of the loss, death or destruction -. /o keep his farm and growing crops attended to during the work season. ;n case of un=ustified abandonment all of the e+pected produce, any upon order of the court be forfeited in favor of the agricultural lessor. (. /o notify the agricultural lessor at least three %* days before the date of harvesting '. /o pay the lease rental to the agricultural lessor when it falls due. ection 2', .A. &o. $--, empowers the lessee to take direct action against any trespasser to the landholding without waiting for the response from the lessor.
2.
.
-.
/o propose a change in the use of the landholding to other agricultural purposes. ;n case of disagreement, the same shall be settled by the Court %&ow Ad=udication 7oard* /o ac9uire the agricultural lessee, to adopt in his proven farm practices necessary to the conservation of the land, improvement of its fertility and increase its productivity8 /hat in case of disagreement as to what proven farm practice the lessee shall adopt, the same shall be settled by the court %now the 1AA7* /o mortgage e+pected rentals.
Ob&gaton! of t'e Le!!or ". /o keep the lessee in peaceful possession and cultivation of his landholding 2. /o keep intact the permanent useful improvements e+isting on the landholding.
-ro'bton! to Agr%$&t$ra& Le!!ee a. /o contract to work additional lanholdings belonging to a different agricultural lessor b. /o ac9uire and personally cultivate a family5size farm without knowledge and consent of the agricultural lesor c. /o employ a sub5lessee. Termnaton of Lea!e'o&d by t'e Le!!ee ". 2. . -. (.
Cruel, inhuman or offensive treatment of the agricultural lessee by the agricultural lessor &on5compliance on the part of the agricultural lessor with any of the obligations imposed Compulsion of the agricultural lessee by the agricultural lessor to do any work not in any way connected with farm work Commission of a crime by the agricultural lessor against the agricultural lessee Goluntary surrender due to circumstances more advantageous to him and his family.
Rg't! of t'e Agr%$&t$ra& Le!!or ".
/o inspect and observe the e+tent of compliance of their contract and the provision of this Chapter
/he lessee may seek relief from the nearest egional Agrarian eform Ad=udicators %AA1* or the 0rovincial Agrarian eform Ad=udicators %0AA1* to compel the agricultural lessor to comply with this obligation in case of refusal, neglect or resistance on the part of the lessor. -ro'bton to t'e Agr%$&t$ra& Le!!or ". 2. . -. (.
/o dispossess the agricultural lessee of his landholding e+cept upon authorization by the court under ection '. /o re9uire the agricultural lessee to assume, the payment of the ta+es on the landholding /o re9uire the agricultural lessee to assume, any part of the rent, to pay to third persons for the use of the land /o deal with millers or processors without written authorization of the lessee /o discourage, the formation, maintenance or growth of unions or organizations of agricultural lessees in his landholding.
Gro$nd for D!/o!ton of Agr%$&t$ra& Le!!ee ".
. 0lanting of crops or used the landholding for a purpose other than what had been previously agreed upon -. 3ailure to adopt proven farm practices as determined under paragraph of ection twenty5nine (.
Le!!ee! Rg't of Redem/ton ;n case the landholding is sold to a third person without the knowledge of the agricultural lessee, the latter shall have the right to redeem the same at a reasonable price and consideration8 where there are two or more agricultural lessees, each shall be entitled to said right of redemption only to the e+tent of the area actually cultivated by him. /he right of redemption under this ection may be e+ercised within one hundred and eighty days from notice in writing. Upon the filing of the petition, the said period o one hundred and eighty days shall cease to run. Any petition shall be resolved within si+ty days.
Le!!ee! Rg't of -re*em/ton and Redem/ton ;n case the agricultural lessor decide to sell the landholding, the agricultural lessee shall have the preferential right to buy the same under reasonable terms and conditions8 each shall be entitled to said preferential right only to the e+tent of the area actually cultivated by him. /he right of pre5emption may be e+ercised within one hundred eighty %"$B* days from notice in writing, which shall be served by the owner on all lessees affected and the 1epartment of Agrarian eform.
/he 1epartment of Agrarian eform shall initiate, while the !and 7ank shall finance, said redemption as in the case of pre5emption. Rg't to Se&f*organ(aton /he farmworkers shall have the right to self5organization and form, =oin or assist farmworkers’ organizations of their own choosing for the purpose of collective bargaining through representatives of their own choosing. B&& of Rg't! for Agr%$&t$ra& Labor"
@e must either tender payment of, or present a certificate from the !and 7ank that it shall make payment pursuant to ec. $B of this Code. ;f the latter refuses to accept such tender or presentment, he may consign it with the Court. Any dispute as to reasonableness of the terms and conditions, may be brought by the lessee or by the 1epartment of Agrarian eform to the proper Court of Agrarian elations.
". 2. . -. (.
ight to self – organization ight to engage in concerted activities. ight to minimum wage ight to work for not more than eight hours ight to claim for damages for death or in=uries sustained while at work '. ight to compensation for personal in=uries death or illness ). ight against suspension or lay5off.
Comment!" Comment!" /he right of pre5emption as distinguished from redemption, is the right to purchase the property from the agricultural lessor by the lessees which is e+ercised before it is sold to a third person other than the lessee. /he lessee may consign the purchase money with the 1epartment of Agrarian eform.
/he right to self – organization includes the right to strike and hold picket in order to compel the management in the case of large scale plantations and multinational corporations to meet the demands of the farm workers for wage increase and better working conditions. Irrgaton Fa%&te!
0ermanent irrigation system may be constructed at the e+pense of the lessor8 ". hould the lessor refuse to bear the e+penses, he should not be entitled to the increase in rental and shall upon the termination of the leasehold relationship pay the lessee or his their the reasonable value of the improvements at the time of the termination 2. hould the lessor bear e+penses he shall be entitled to an increase in the rental proportionate to the resultant increase in production.
Management of Irrgaton Sy!tem ".
2.
Lea!e of R%e&and! and Land! De+oted to Ot'er Cro/! ".
2. .
2(D of the average normal harvest – shall be the amount of rental for ricelands or estimated normal harvest during the three %* agricultural years immediately preceding the establishment of the leasehold after deducting the e+penses for seeds, cost of harvesting, threshing, loading, hauling and processing Average normal harvest for three %* preceding years. &o agreement as to rental – the court %now 1A* shall fi+ a provisional rental until fi+ed rental is determined within %B* days from submission of the case for decision.
Amort(aton -ayment for Land $nder Lea!e'o&d8 /he rentals paid by the lessee to the lessor at the place agreed upon by the parties shall be credited as amortization payments for the purchase price of the landholding titled by the leasee8 a*
