AGRARIAN LAW by Barte INTRODUCTION A. DEFINITIONS AND TERMS Reform – Reform – presupposes that something is defective, hence, needs reformation and correction. Land Reform Reform – denotes denotes a broad broad concept concept of conventiona conventionall and revolutionary measures intended to correct certain defects in the relationship between landowner and tiller regarding their rights and obligations in the cultivation and management of landholding. Agraran Agraran Reform – refer efers s not not only only to land land refo reform rm but but also also embrac embraces es a full full range range of measur measures es desig designe ned d to impro improve ve the the relationship between landowner and tiller, employer and employee, corpor corporate ate manage manageme ment nt and stockh stockhold older ers, s, coope cooperat rative ives s and membe members, rs, and other other farmer farmers’ s’ orga organiz nizat ation ions s includ includin ing g their 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 de+ned as the redistribution of lands, regard regardless less of crops crops or fruits fruits produc produced, ed, to farmers farmers and regular regular 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$re Str$%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$ra& Tenan%y enan%y – refers to the manner of holding agricultural lands.
b. S'are Tenan%y Tenan%y – under this system of landholding, tillers work the land as sharecr sharecroppe oppers rs entitled entitled to share share in the produce of the land. c. Lea!e'o&d Tenan%y – is a tenur tenurial ial system system which which was institut instituted ed by .A. .A. &o. -$ %Code %Code of Agraria Agrarian n efor eforms* ms* charact characteriz erized ed by lessor lessor and lessee lessee relatio relationshi nship p which which is create created d either either by written written or oral agreement agreement between between the parti parties es or implie impliedly dly by accept acceptan ance ce of bene bene+ts +ts by the the landowner, or by an act of cultivation thru the toleration of the owner owne r. Comment!" !easehold relationship abolished the share tenancy system under the ice /hare 0enancy Act of "#-- as amended, 1.2. &o. 3) was issued issued by then 1residen 1residentt 4erdi 4erdinan nand d 5arcos 5arcos which which aside aside from from uphol upholdin ding g the the lease leasehol hold d relat relation ionsh ship, ip, likew likewise ise ordai ordained ned the the emancipation of tenant6farmers from the bondage of the soil, and considered considered them ipso facto facto owners of the lands they till primarily devoted to rice and corn. 1.2. &o. 3) %0enants enants 7mancipa 7mancipation tion 2ecree 2ecree** likewis likewise e +ed +ed the retention limit for the landowner an area not eceeding seven %)* 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 O)ner – a tenant6f tenant6farm armer er whose whose status status had been been rais raised ed auto automa mati tica call lly y by oper operat atio ion n of law law from from leasehold tenant to that of amortizing owner, who makes repayments of the purchase price of the land he tills to the !and 8ank. e. F$&& O)ner or O)ner*C$&t+ator – O)ner*C$&t+ator – is an amortizing owner %tenant %tenant6far 6farmer* mer* who has complete completed d full payment payment of his amortizat amortization ion to the !and 8ank of the 1hilippine 1hilippines, s, and is therefore entitled to a certi+cate of title under the 0orrens /ystem. Comment!" Under .A. &o. -$, as amended by .A. &o. '-$#, there are three shifts in the conversion of the tenurial status of tenant6farmer to full owner, namely namely99 share share tenant tenant to leasehol leaseholder der to amortizin amortizing g owner, and from amortizing owner to full owner %owner6cultivator*.
An amortizing owner by operation of law %1.2. &o. 3)* is entitled to an 7mancipation 1atent which serves as a farmholder’s provisional title of ownership to the land upon completion of his amortization repayments to the !and 8ank, or to the !andowner in cases of farmers who have been amortizing their lands with the landowner. f.
O)ner*C$&t+ator – is the term applied to a tenant – farmer who has attained the status of full owner and :uali+ed bene+ciary under the Agrarian eform !aw of the 1hilippines.
,. -rod$%ton Str$%t$re – is a concept that refers to the use of the land, nature and method of farm operation, and the process of production.
0he state shall promote a >ust and dynamic social order that will free the people from poverty through policies ade:uate social services, promote full employment, a rising standard of living, and an improve :uality of life for all. 0he state shall promote a comprehensive rural development and agrarian reform. 0he /tate shall, by law, undertake an agrarian reform program founded on the right of the farmers and regular farmworkers, who are landless, to own directly or collectively the lands they till or, in the case of other farmworkers, to receive a >ust share of the fruits thereof. %Art. ?<<<, /ocial @ustice and uman ights, /ec. *.
CONTEM-ORANEOUS -RECE-TS AND MEASURES . Str$%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 LAND REFORM MEASURES RETRACED 7ven before the /paniard came into these
CONSTITUTIONAL MANDATES ON AGRARIAN REFORM
Treaty of -ar! 2#3435 – the con+scation of friar lands and distributed among peasants by the independent government of 5alolos during the 1hilippine evolution. -'&//ne B&& 2#46,5 – !imited private individual landholdings to "' hectares, and corporate landholdings to ",3 hectares. Land Reg!traton! A%t 2#46,5 – !andowners were re:uired to register their landholdings and ac:uire 0orrens titles to land properties. Frar Land A%t –
Common)ea&t' A%t.No. ,93 of #43 – to buy farms and large estates for subletting to bona+de occupants with an option to buy, thru the &ational !and /ettlement Administration %&!/A*. S$gar Cane Tenan%y Contra%t! A%t. 2A%t. No. 7##5 – makes it a duty of the sugar central to ehibit to the tenant the receipts of the number of tons milled by the landowner thereat. Common)ea&t' A%t. No. #6 – created the Court of urisdiction over disputes arising from relationship between agricultural workers and landowners. Common)ea&t' A%t. No. ,# – deals with the right to form legitimate labor organizations and to enter into collective bargaining agreements between management and labor. Common)ea&t' A%t No. #93 – which improved the provision of Act &o. ( the ice /hare 0enancy Act, giving more teeth and protection to the rights of tenants of agricultural lands. Re/$b&% A%t. No. 7 – amended certain /ections of the ice /hare 0enancy Act providing for a ) – - 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 0enancy Act* – infused an added boost to the tenurial rights of tenant – tiller. Land Reform A%t 2R.A. No. #766; #4885 6 guaranteed the epropriation of all tenanted landed estates.
Re/$b&% A%t No. :34 2Code of Agraran Reform!5 – an improvement of .A. &o. -$, this amendatory Act featured the creation of the 2epartment of Agrarian eforms %2A*. Agraran Reform S/e%a& F$nd A%t 2Re/. A%t. No. :465 – provided for a special account and +nancial support for the Agrarian eform 1rogram of the government. -re!denta& De%ree No. , – declaring the entire nation as a land reform area. -re!denta& De%ree No. ,9 – decreeing the emancipation of the tenants, transferring to them the ownership of the land they till. -ro%&amaton No. ## –
A. AGRICULTURAL LAND REFORM CODE 2Re/. A%t. No. 3775 RE-UBLIC ACT No. 377 A$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$ra& Land Reform Code. #. -REFATOR= STATEMENTS 0he thrust of this legislation is the drastic abolition of share tenancy system. ect to the provisions of the !abor CodeE c. organization and operation of the !and 8ankE d. provisions on resettlements of farmersE e. right to pre6emption and redemption, with respect to land6 owner’s retained area, should such landowner decide to sell his tenanted ; leased retained area, the tenant has the preferential right to purchase and ; or redeem the same in case the land is sold to a third person without the tenant’s knowledgeE f. right of the tenant ; lessee to )(F share from the standing cropsE
T'ree !'ft! n t'e mode of a%@$!ton a. b.
0he automatic conversion of the status of share tenant to leaseholder characterized by payment of +ed rentalsE 0he second shift which is the conversion of the leaseholder to amortizing owner, characterized by the !and 8ank
c.
purchase of the property with a concomitant obligation imposed on the tenant6lessee to pay !and 8ank on amortization basis the purchase price of the farmholdingE 0he third shift which converts the status of an amortizaing owner into full owner or owner6cultivator upon full payment of the remaining balance of the amortization.
Se%ton . Composition of Code 6 ". An agricultural leasehold system to replace all eisting share tenancy systems in agricultureE 3. A system of crediting rental as amortization payment on purchase priceE -. A declaration of rights for agricultural laborE . A machinery for the ac:uisition and e:uitable distribution of agricultural landE (. An institution to +nance the ac:uisition and distribution of agricultural landE '. A machinery to etend credit and similar assistance to agricultural lessees, amortizing owners6cultivators, owners6 cultivator and cooperativesE ). A machinery to provide marketing, management and other technical assistance and ; or services to agricultural lessees, amortizing owners6cultivators, owner6cultivator, cooperativesE $. A machinery for cooperative developmentE #. A department for formulating and implementing pro>ects of agrarian reformE ". An epanded program of land "". A >udicial system to decide issues arising under this Code. "3. A machinery to provide legal assistance to agricultural lessees, amortizing owners6cultivator, and owners6cultivator.
Re/ayment S%'eme and Credt A!! !tan%e
$r!d%ton on Agraran D!/$te! All agrarian disputes are now under the cognizance of the 2epartment of Agrarian eform thru the Agrarian eform Ad>udication 8oard. 0he 2epartment of Agrarian eform Ad>udication 8oard %2AA8* in turn delegates its functions to the respective egional and
1rovincial Ad>udicators of the 2A. Any decision, order, award or ruling of the 2A on any agrarian dispute, may be brought to the Court of Appeals on certiorari . S/e%a& Agraran Co$rt! Under the present law %.A. &o. ''()* all controversies involving the determination of >ust compensation and prosecution of all criminal oDenses arising from violations of the provisions of this Act, fall under the original and eclusive >urisdiction of /pecial Agrarian Courts. B$rea$ of Agraran Lega& A!!!tan%e 0hey shall be responsible for the development of plans and programs for the etension of legal information to farmersE etension of legal services to them.
DEFINITION OF TERMS Agr%$&t$ra& &and – means land devoted to any growth, including but not limited to crop lands, saltbeds, +shponds, 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.
-er!ona& %$&t+aton – means cultivation by the lessee or lessor in person. Wor? anma&! – means animals ordinarily employed in a farm enterprise. Agraran d!/$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*%$&t+ator personally cultivates his own land.
–
means
any
person
who,
Far renta& +a&$e – means the value not in ecess of allowable depreciation plus 'F interest per annum. In%a/a%ty – means any cause or circumstance which prevents the lessee from ful+lling his contractual and other obligations under the Code.
Mode! of Land Ten$re A&&o)ed $nder R.A. No. 377 ". Lea!e'o&d !y!tem – characterized by a tenant – farmer personally and actually cultivating the farmholding under a leasehold relationship whereby the lessee pays a +ed amount of rental whether in cash or in kind to the lessor. ,. S'are tenan%y
Agr%$&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$ra& year – means the period of time re:uired for raising a particular agricultural product. Farm m/&ement! – means hand tools or machineries in a farm enterprise. Immedate farm 'o$!e'o&d 6 means the members of the family of the lessee or lessor and other persons who are dependent upon him for support.
. 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
-ro+en farm /ra%t%e! – means sound farming practices. ". by agreement of the parties
3. by operation of law – implementation of .A. &o. -$ providing for the abolition of share tenancy.
W'at t'en %on!tt$te! a! fam&y*!(e farm !o a! to g+e r!e to tenan%y re&aton!'/
-arte! to Lea!e'o&d Re&aton ". 3.
the landholder the person who personally cultivates the land.
ESSENCE OF LEASE0OLD RELATION ". ect of the landholding and continues to eist even by the death or incapacity of either party, or the epiration of the agreement. Ten$ra& Arrangement of Lea!e'o&d ect a tenant illegally from his holding ecept upon approval of the court. Do%trne on !e%$rty of &and ten$re /ecurity of land tenure Gthe agricultural leasehold relation under this Code, shall not be etinguished by mere epiration 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.H
the parties are the landowner and the tenantE the sub>ect is agricultural landE there is consentE the purpose is agricultural productionE there is personal cultivationE there is sharing of harvests.
0he 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.
Fam&y*!(e farm – an area of farmland that permits eIcient use of labor and capital resources of the farm family and will produce an income suIcient 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 Juctuations in income. W'at no) ! t'e ee%t of t'e &a) to %$&t+ator*t&&er of a &e!! t'an fam&y*!(e farm! /uch landholder6tiller or tiller6sharer, is at most considered as a mere caretaker before the eyes of the law who is not entitled to the security of tenure. S'o$&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! 0he 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. Ca$!e! for Eectment of the lesseeE (. Ac:uisition by the lessee of the landholdingE '. 0ermination of the leasehold under /ec. 3$E ). 5utual consent of the partiesE $. Conversion of the landholding for non6agricultural purposes. Ob&gaton! of t'e Le!!ee! ". 0o cultivate and take care of the farm as a good father of a family 3. 0o inform the agricultural lessor any trespass committed by third persons upon the farmE
-. 0o take reasonable care of the work animals and farm implements delivered to him by the agricultural lessor, he shall be held responsible and made answerable therefore to the etent of the value of the work animals and ; or farm implements at the time of the loss, death or destructionE . 0o keep his farm and growing crops attended to during the work season. usti+ed abandonment all of the epected produce, any upon order of the court be forfeited in favor of the agricultural lessor. (. 0o notify the agricultural lessor at least three %-* days before the date of harvestingE '. 0o pay the lease rental to the agricultural lessor when it falls due. /ection 3', .A. &o. -$, empowers the lessee to take direct action against any trespasser to the landholding without waiting for the response from the lessor.
3.
0o propose a change in the use of the landholding to other agricultural purposes. udication 8oard*E -. 0o ac:uire the agricultural lessee, to adopt in his proven farm practices necessary to the conservation of the land, improvement of its fertility and increase its productivity9 0hat in case of disagreement as to what proven farm practice the lessee shall adopt, the same shall be settled by the court %now the 2AA8*E . 0o mortgage epected rentals.
Ob&gaton! of t'e Le!!or ". 0o keep the lessee in peaceful possession and cultivation of his landholdingE 3. 0o keep intact the permanent useful improvements eisting on the landholding.
-ro'bton! to Agr%$&t$ra& Le!!ee a. 0o contract to work additional lanholdings belonging to a diDerent agricultural lessorE b. 0o ac:uire and personally cultivate a family6size farm without knowledge and consent of the agricultural lesorE c. 0o employ a sub6lessee.
0he lessee may seek relief from the nearest egional Agrarian eform Ad>udicators %AA2* or the 1rovincial Agrarian eform Ad>udicators %1AA2* 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
Termnaton of Lea!e'o&d by t'e Le!!ee ". ". 3. -.
. (.
Cruel, inhuman or oDensive treatment of the agricultural lessee by the agricultural lessorE &on6compliance on the part of the agricultural lessor with any of the obligations imposedE Compulsion of the agricultural lessee by the agricultural lessor to do any work not in any way connected with farm workE Commission of a crime by the agricultural lessor against the agricultural lessee Koluntary surrender due to circumstances more advantageous to him and his family.
3. -. . (.
0o dispossess the agricultural lessee of his landholding ecept upon authorization by the court under /ection -'. 0o re:uire the agricultural lessee to assume, the payment of the taes on the landholdingE 0o re:uire the agricultural lessee to assume, any part of the rent, to pay to third persons for the use of the landE 0o deal with millers or processors without written authorization of the lesseeE 0o 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$ra& Le!!ee Rg't! of t'e Agr%$&t$ra& Le!!or ".
0o inspect and observe the etent of compliance of their contract and the provision of this ChapterE
". =hen the landholding is declared by the 2epartment ead to be suited for residential, commercial, industrial or some other urban purposesE 3. 4ailure to comply with any of the of the terms and conditions of the contract of leaseE
-. 1lanting of crops or used the landholding for a purpose other than what had been previously agreed uponE . 4ailure to adopt proven farm practices as determined under paragraph - of /ection twenty6nineE (. =hen through fault or negligence of the lessee, the land or other substantial permanent improvement thereon is substantially damaged or destroyed or has reasonably deterioratedE '. 4ailure to pay the lease rental when it falls dueE ). 7mployment of a sub6lessee. 0he above causes are grounds for e>ectment of an agricultural lessee only after observance of due process.
Le!!ee! Rg't of Redem/ton
Le!!ee! Rg't of -re*em/ton and Redem/ton
0he 2epartment of Agrarian eform shall initiate, while the !and 8ank shall +nance, said redemption as in the case of pre6emption. Rg't to Se&f*organ(aton 0he farmworkers shall have the right to self6organization and form, >oin or assist farmworkers’ organizations of their own choosing for the purpose of collective bargaining through representatives of their own choosing. B&& of Rg't! for Agr%$&t$ra& Labor"
e must either tender payment of, or present a certi+cate from the !and 8ank that it shall make payment pursuant to /ec. $ of this Code.
". 3. -. . (.
ight to self – organizationE ight to engage in concerted activities. ight to minimum wageE ight to work for not more than eight hoursE ight to claim for damages for death or in>uries sustained while at workE '. ight to compensation for personal in>uriesE death or illnessE ). ight against suspension or lay6oD.
Comment!" Comment!" 0he right of pre6emption as distinguished from redemption, is the right to purchase the property from the agricultural lessor by the lessees which is eercised before it is sold to a third person other than the lessee. 0he lessee may consign the purchase money with the 2epartment of Agrarian eform.
0he 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!
1ermanent irrigation system may be constructed at the epense of the lessor9 ". /hould the lessor refuse to bear the epenses, 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 terminationE 3. /hould the lessor bear epenses he shall be entitled to an increase in the rental proportionate to the resultant increase in production. Management of Irrgaton Sy!tem ".
3.
=hen constructed and operated by the government. !essees either as individuals or groups shall allocate not more than 3(F of their rental collection to the government.
Lea!e of R%e&and! and Land! De+oted to Ot'er Cro/! ".
3. -.
3(F 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 epenses for seeds, cost of harvesting, threshing, loading, hauling and processingE Average normal harvest for three %-* preceding years. &o agreement as to rental – the court %now 2A* shall + a provisional rental until +ed rental is determined within %-* days from submission of the case for decision.
Amort(aton -ayment for Land $nder Lea!e'o&d9 0he 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 leasee9 a* =hen the landholding is epropriated by the governmentE b* =hen it is redeemed.
=hatever balance remaining after crediting as amortization the rental paid, the same may be +nances by the !and 8ank in the same ratio and mode of payment provided under /ection $ of the Code. 2efault on the 1art of the !essee9 /hould the lessee incur default in the payment of at least three %-* installments on the loan, the lender shall immediately notify the !and 8ank and the 2A so that appropriate steps shall be taken by these agencies9 a* to answer for the default in case the failure is due to fortuitous event b* to take over the ownership and administration of the landholding. =here the case of the default is attributable to the lessee, the 2A shall endeavor to substitute the defaulting amortization owner.
