Enacted on August 8, 1963 during the incumbency of President Diosdado P. Macapagal (1961-1965)
Amended by R.A. 10374 (July 23, 2012) which expanded the life of the Land Bank of the Philippines
Amended by R.A. 9700 (July 27, 2009) amending R.A. 6657 on Comprehensive Agrarian Reform Law of 1988
Amended R.A. 6389 – Agrarian Reform Special Fund
To create a system of owner-cultivatorship owner-cultivatorship and economic family-size farm as basis of Philippine agriculture.
1. Share Tenancy System to Agricultural Leasehold System 2. BILL OF RIGHTS for agricultural workers 3. Department of Agrarian Reform (DAR) serves as machinery for acquisition and distribution distribut ion of agricultu agricultural ral land 4. Land Bank as the financial arm of the agrarian reform program.
Existing share tenancy contracts may continue until the end of agricultural year unless the contract provides for a shorter period.
Presumption of Leasehold Relationship if a new share tenancy is created (without prejudice to any lawful contracts the parties may enter into).
Leasehold contracts perfected prior to the Code will be respected.
1. Made in quadruplicate in a language or dialect known to the agricultural lessee; 2. Signed or thumb-marked by the Agricultural lessee personally and the agricultural lessor in the presence of two witnesses chosen by each party; 3. Acknowledge before the municipal court where the land is located; 4. Registered with the Municipal Treasure (Custodian of leasehold contracts
– Registry
of
Agricultural Leasehold Contracts). Note: The witness of the agricultural lessee is there to explain the contents of the contract if the latter is unable to read.
Established by operation of
Limited to the person who
Right to continue working
law in accordance with
furnishes the landholding
on the landholding
Section four of this Code
either as owner, civil law
Security of tenure on his
and, in other cases, either
lessee, usufructuary, or legal
landholding and cannot
orally or in writing,
possessor, and the person who
be ejected therefrom
expressly or impliedly.
personally cultivates the same.
unless authorized by the Court for cause
1. Abandonment without the knowledge of the agricultural lessor; 2. Voluntary surrender by the agricultural lessee, with written notice three (3) months in advance; 3. Absence of successor of the lessee in case of death or permanent incapacity.
Personally chosen by the lessee one (1) month prior to his death or permanent incapacity from the following: 1. Surviving spouse 2. Eldest direct descendant by consanguinity 3. Next eldest descendant/s in order of age Priority will be according to the order enumerated.
The purchaser or transferee of the landholding shall be SUBROGATED to the rights and SUBSTITUTED to the obligations of the agricultural lessor. Mere expiration of term/period of the leasehold contract does not extinguish the relation.
1. Excessive rental; 2. Payment of consideration in excess of the fair rental value; 3. Contract contains a condition that requires the lessee to: a. Rent work animals or hire farm implements from the lessor or 3rd persons; b. Work or render service other than his duties with or without compensation; c. Answer to any fine, deductions, and/or assessments.
1. Cruel, inhumane or offensive treatment of the lessee by the lessor or his family; 2. Non-compliance of the lessor to the Code or the lease contract; 3. Compulsion to work or render service not considered as farm work or any work or service without compensation;
4. Commission of a crime by the lessor or his representative against the lessee or any member of his immediate family; 5. Voluntary surrender due to more advantageous circumstances.
1. 25 % of the entire produce of the land; and 2. Work animals and farm implements belonging to the lessee which must not exceeding PHP 1000
Those mentioned above are not exempt from execution if issued upon judgment for its price or judgment of foreclosure of a mortgage.
1. Land has been declared as residential, commercial, industrial, or other urban purposes by an authorized government agency; = 5x the average gross harvest of the landholding in the last 5 years 2. Failure of the lessee to comply with the terms and conditions of the lease contract; 3. Planted different crops or used the landholding other than what was agreed upon; 4. Failure to adopt proven farm practices (consideration on the financial capacity and credit facilities available) 5. Damage or destruction of the land or permanent improvements by the fault or negligence of the lessee; 6. Failure to pay rental when it falls due; 7. Employment of a sub-lessee
Dispossession is not automatic. An action/petition must be filed by the lessor with
DARAB and prove the existence of the grounds.
1. Right to self-organization 2. Right to engage in concerted activities 3. Right to minimum wage 4. Right to work for not more than eight (8) hours 5. Right to claim for damages for death or injuries sustained while at work 6. Right to compensation for personal injuries, death, illness 7. Right against suspension or lay-off 8. Right of pre-emption 9. Right of redemption 10.Right to a home lot
If in produce – must be paid immediately after threshing/processing
If in money - within a reasonable time from threshing or processing.
To cultivate and take care of the
To have peaceful possession and
family according to proven farm
landholdings
enjoyment of the
practices.
from a different
land.
Inform the lessor of any
lessor.
To manage and
Cultivating an
work on the land
Take care of work animals and
economic-size
with proven farm
farm improvements given by the
farm without
practices.
lessor (loss of such makes the
knowledge and
lessee liable to their value)
consent of the
phase of farm
Keep the farm and crops
lessor (if the
work.
attended to ( unjustified
landholding is
To mechanize all
To deal with millers
sufficient in size)
and processors &
Employment of a
attend to issuance
Three (3) days advance
sub-lessee
of quedans or
notification of the date of
(Exemption: in
warehouse
harvesting or threshing.
case of
receipts.
To pay lease rental when it falls
temporary
due
incapacity).
–
forfeited in favor of the lessor)
additional
abandonment – Court order
Contracting
farm as a good father of a
trespass by third persons
To have a home lot within the land he leases.
To be enforceable, loans obtained by an agricultural lessee should be: 1. Written in language or dialect know to the agricultural lessee; and 2. Signed or thumb-marked by the agricultural lessee or by his agent.
Three (3) years reckoned from the time the cause of action accrued.
They shall be expropriated in the following order:
1. Idle or abandoned lands; 2. Those whose area exceeds 1,024 hectares; 3. Those whose area exceeds 500 hectares but not more than 1,024 hectares; 4. Those whose area exceeds 144 hectares but not more than 500 hectares; 5. Those whose area exceeds 75 hectares but not more than 144 hectares.
Keep the lessee
Dispossessing the lessee
Inspect and observe
in peaceful
except when authorized by
compliance with the
cultivation and
Court.
terms and conditions of
Requiring the lessee to
their contract.
cultivation of
the
indirectly or directly assume
landholding
payment of taxes.
or crops planted (Court
Requiring the lessee to
will settle disagreement
all
indirectly or directly assume
but lessee will not be
improvements
payment of rent the lessor is
ejected due to
existing at the
under obligation to pay to
conversion for some
time the
3rd persons.
other agricultural
Dealing with millers or
purposes)
To keep intact
leasehold was
entered into
processors without the lessee ’s
Propose change of use
To require the lessee to adopt proven farm
authorization.
Discourage or interfere
practices (financial
unions of lessees within his
capacity and credit
landholding
facilities)
Mortgage expected rentals
10- Year prohibitory period against encumbrance, sale, mortgage, or transfer from the date of full payment and acquisition.
After the prohibitory period, disposition or sale may be made only in favor of persons qualified to acquire economic-sized farms.
Hereditary Succession
1. Implements laws, programs and policies for the acquisition and distribution of all agricultural lands as provided by laws; 2. Resettle landless farmers and farm workers in government-owned agricultural estates which shall be distributed to them as provided by laws; 3. Recommend and provide incentives for voluntary sharing of lands by owners of agricultural lands; 4. Acquire, determine the value, subdivide into family-size farm, develop and distribute to qualified tillers, actual occupants and displaced urban poor, private agricultural lands regardless of area and crops planted; 5. Administer and dispose of, under a settlement scheme, all portions of the public domain declared as alienable and disposable lands for speedy distribution to and development by deserving and qualified persons who do not own any land and under such terms and conditions as the Department may prescribe, giving priority to qualified and deserving farmers in the province where such lands are located; 6. Provide free legal assistance to farmers covered by agrarian reform and expedite the resolution of agrarian conflicts and land tenure problems either through conciliatory or adversary proceedings; 7. Provide create, responsive and effective information, education and communication programs and projects both for the tenant beneficiaries, landowners, the government and private sectors and the general public, thereby generating a broad spectrum of support and understanding of the new agrarian reform program; 8. Strengthen agrarian reform beneficiaries organization to a degree of national viability that would enable them to share in the shaping of government policies and
institutionalize farmers participation In agrarian reform policy formulation, program implementation and evaluation; 9. Promote the organization and development and cooperatives of agrarian reform beneficiaries and register the same; 10.Implement all agrarian reform laws and for this purpose issue subpoena, subpoena duces tecum, and writs of execution of its orders, and decisions and other legal processes to ensure compliance form all parties concerned for successful and expeditious program implementation; 11.Undertake land surveys on lands covered by agrarian reform and issue patents to farmers covered by agrarian reform, both on private and public lands; 12.Develop, implement and undertake alternative and innovative land development schemes and land tenure systems such as, but not limited to land consolidation, land forming cooperative farming and agro-industrial estates; 13.Approve or disapprove conversion of agricultural lands to non –agricultural uses such as residential and industrial conversion in accordance with the existing provisions of law; 14.Undertake land use management studies; 15.Compensate the landowners covers by agrarian reform; 16.Integrate and synchronize program implementation of the Land Bank of the Philippines and other relevant civilian and military government and private entities involve mandated to support the agrarian reform program through inter-agency committees and Agrarian Reform Coordinating Councils; and 17.Perform such other functions as may be provided by law. THE LAND BANK Established to: 1. Finance Government acquisition of landed estates for division and resale to small landholders; and 2. To aid in the purchase of the landholding of the agricultural lessee from the landowner.
Powers and Functions:
1. To prescribe, repeal and alter its own by-laws to determine its operating policies, and to issue such rules and regulations as may be necessary; 2. To adopt, alter and use a corporate seal; 3. To hold, purchase, acquire and own real and personal property, introduce necessary improvements thereon to enhance and develop their social and economic values, and to sell, mortgage or otherwise dispose of the same; 4. To sue and be sued, make contracts, negotiate and secure loans from both local and foreign sources. Before undertaking any such credit operation, the bank, through the Secretary of finance, shall request the opinion, in writing, of the Monetary Board on the monetary implications of the contemplated action. All loans from foreign sources shall be subject to approval by the President of the Philippines shall be fully guaranteed by the Philippine Government; 5. To grant short, medium and long term loans advances against security of real estate and/or other acceptable assets for the establishment, development or expansion of agricultural, industrial, home building or home financing projects and other productive enterprises; 6. To finance and/or guarantee the acquisition, under P.D No. 85 dated December 25,1972, of farm lots transferred to tenant-farmers pursuant to P.D No. 27 dated October 21, 1972. 7. To underwrite, hold, own purchase, acquire, sell, mortgage, dispose or otherwise invest or reinvest in stocks, bond, debentures, securities and other evidence of indebtedness of other corporations and of the government or its instrumentalities which are issued for or in connection with any project or enterprise; 8. The provision of any law to the contrary notwithstanding, to guarantee acceptance(s), credits, loans, transactions or obligations of any persons, co-partnership, association or corporation in favor of any financing or banking institution whether foreign or domestic; Provided, that the proceeds of such acceptances, credits, loans, transactions or obligations are utilized or earmarked for the development and/ or expansion of agriculture and industry; 9. To borrow from, or rediscount notes, bills of exchange and other commercial papers with, the Central Bank. The rate of interest to be charged and the conditions on such
obligations or borrowings shall be subject to the rules and regulations of Monetary board; 10.To act as trustee, or administer any trust or hold property in trust in accordance with the provisions of law governing trust corporations; and 11.To act as an official government depository with full authority to maintain deposits of the government, its branches, subdivisions and instrumentalities, and governmentowned or controlled corporations which deposits shall be subject to the liquidity flood and/or reserve requirements as may be imposed by the Monetary Board upon other commercial banks; 12.For the strengthening of the capital base of the bank, to establish a national marketing umbrella for farmers and fisheries cooperatives to attract massive capital formation from savings deposits of the cooperative members nationwide; 13.To exercise the general powers mentioned in the Corporation Law and the General Banking Act, as amended insofar as they are not inconsistent or incompatible with decree.
1. Productivity of the area; 2. Suitability for economic-size farms; 3. Tenancy rate in the area; 4. Minimum fixed capital spending to develop the area; 5. Proximity of the area to resettlement projects; and 6. Number of farmers who cultivate uneconomic-sized farms. a. Ability and readiness to be resettled; b. Availability of idle or abandoned lands to be acquired or expropriated.
Judicial function of the Court of Agrarian Relations is vested on an Executive Judge and the Regional District Judges appointed by the President with consent from the Commission on Appointments.
Fifteen (15) Regional Districts across the Philippines
It shall have all the powers and prerogatives inherent in to the CFI/RTC.
