AN ACT STRENGTHENING THE COMPREHENSIVE AGRARIAN REFORM PROGRAM (CARP)

Case Overview and Summary

Declaration of Principles and Policies (Section 2):

- Pursue a Comprehensive Agrarian Reform Program (CARP) to promote social justice, rural development, and industrialization.
- Establish owner cultivatorship of economic-size farms as the basis of Philippine agriculture.
- Promote industrialization and full employment based on sound agricultural development and agrarian reform.
- Protect Filipino enterprises against unfair foreign competition.
- Undertake a more equitable distribution and ownership of land, with due regard to landowners' rights to just compensation.
- Recognize the rights of farmers and farmworkers to own the lands they till or receive a just share of the fruits thereof.
- Implement the program in a community-based manner.
- Recognize the rights of rural women to own and control land.
- Apply the principles of agrarian reform in the disposition or utilization of other natural resources.

Definitions (Section 3):

- Defines "farmer" and "rural women".

Scope (Section 4):

- Covers all public and private agricultural lands, regardless of tenurial arrangement and commodity produced.
- Excludes landholdings of 5 hectares and below.
- Requires a comprehensive inventory system for identifying and classifying farmlands.

Exception to Retention Limits (Section 6-A):

- Allows provincial, city, and municipal government units to acquire private agricultural lands for public purposes without being subject to the 5-hectare retention limit.

Review of Limits of Land Size (Section 6-B):

- Requires the DAR to submit a study on appropriate land sizes for each type of crop within 6 months.

Priorities (Section 7):

- Outlines the phases and schedules for land acquisition and distribution, with specific deadlines.
- Phase One: Lands above 50 hectares, by June 30, 2012.
- Phase Two: (a) Lands 24-50 hectares, by June 30, 2012; (b) Remaining lands above 24 hectares, by June 30, 2013.
- Phase Three: (a) Lands above 10-24 hectares, by June 30, 2013; (b) Lands from retention limit to 10 hectares, by June 30, 2014.
- Allows the PARC to declare priority land reform areas for advanced implementation.

Determination of Just Compensation (Section 17):

- Outlines factors to be considered in determining just compensation, including cost of acquisition, value of standing crop, current value of like properties, nature, actual use and income, sworn valuation by the owner, tax declarations, government assessments, and 70% of the BIR zonal valuation.
- Considers social and economic benefits contributed by farmers and farmworkers, and non-payment of taxes or loans.

Order of Priority (Section 22-A):

- Requires landholdings to be distributed first to qualified beneficiaries under Section 22(a) and (b) up to a maximum of 3 hectares each, before distributing to other beneficiaries.

Award to Beneficiaries (Section 24):

- Beneficiaries' rights and responsibilities commence upon receipt of a duly registered emancipation patent or certificate of land ownership award and actual physical possession of the awarded land.
- Emancipation patents and certificates of land ownership award are indefeasible and imprescriptible after one year from registration.
- Identifies and qualified agrarian reform beneficiaries shall have usufructuary rights over the awarded land as soon as the DAR takes possession.
- The DAR has exclusive and original jurisdiction over cases involving the cancellation of registered emancipation patents, certificates of land ownership award, and other titles issued under any agrarian reform program.

Award Ceilings for Beneficiaries (Section 25):

- Beneficiaries shall be awarded an area not exceeding 3 hectares.
- Defines a landless beneficiary as one who owns less than 3 hectares of agricultural land.
- Encourages beneficiaries to form or join farmers' cooperatives and collective organizations.
- Outlines conditions for the issuance of collective titles.
- Requires the DAR to undertake the parcelization of existing collective certificates of land ownership award that do not exhibit conditions for collective ownership within 3 years.

Payment by Beneficiaries (Section 26):

- Lands awarded shall be paid for by beneficiaries to the LBP in 30 annual amortizations at 6% interest per annum, starting one year from the date of certificate of land ownership award registration or actual occupancy.
- The first 3 annual payments shall be at reduced amounts, and the first 5 annual payments shall not be more than 5% of the value of the annual gross production.
- The LBP shall have a lien by way of mortgage on the awarded land and may foreclose for non-payment of 3 annual amortizations.

Transferability of Awarded Lands (Section 27):

- Awarded lands shall not be sold, transferred, or conveyed except through hereditary succession, to the government, LBP, or other qualified beneficiaries through the DAR for 10 years.
- The children or spouse of the transferor shall have the right to repurchase the land from the government or LBP within 2 years.
- If the land has not been fully paid, the rights may be transferred with prior DAR approval to an heir or other beneficiary who will cultivate the land.

Funding for Support Services (Section 36):

- At least 40% of all appropriations for agrarian reform during the 5-year extension period shall be set aside for support services.
- The DAR shall pursue an integrated land acquisition and distribution and support services strategy.
- At least 2 Agrarian Reform Communities (ARCs) shall be established by the DAR in each legislative district with a predominant agricultural population within 5 years.

Support Services for Agrarian Reform Beneficiaries (Section 37):

- Adopts an integrated policy of support services delivery to agrarian reform beneficiaries.
- 30% of appropriations for support services shall be set aside for agricultural credit facilities, with one-third for subsidies to new beneficiaries and two-thirds for access to socialized credit for existing beneficiaries.
- Outlines various support services, including extension services, infrastructure, research, and direct DAR assistance in education and organization of beneficiaries.
- Requires the PARC to formulate policies to ensure support services are provided at all stages of program implementation.
- Requires the PARC to adopt policies to ensure fundamental equality of women and men in the agrarian reform program and respect for human rights and decent working conditions.
- Transfers the Bagong Kilusang Kabuhayan sa Kaunlaran (BKKK) Secretariat to the LBP.

Equal Support Services for Rural Women (Section 37-A):

- Requires support services to be extended equally to women and men agrarian reform beneficiaries.
- Requires the PARC to ensure support services integrate the specific needs and well-being of women farmer-beneficiaries.
- Requires the PARC to ensure rural women can participate in all community activities and have access to economic opportunities, credit, marketing facilities, technology, and other support services.
- Requires the DAR to establish and maintain a women's desk for formulating and implementing programs related to the protection and promotion of women's rights.

Support Services for Landowners (Section 38):

- Provides landowners affected by CARP with investment information, financial and counseling assistance, facilities for converting bonds to stocks and bonds issued by the government, marketing of agrarian reform bonds, and other services to utilize the proceeds of land sale for rural industrialization.
- Landowners investing in rural-based industries shall be entitled to incentives granted to registered enterprises engaged in pioneer or preferred areas of investment.
- The LBP shall redeem a landowner's agrarian reform bonds at face value as an incentive if at least 50% of the proceeds are invested in a BOI-registered company or agri-business/agro-industrial enterprise in the region where the CARP-covered landholding is located.

The Presidential Agrarian Reform Council (PARC) (Section 41):

- Outlines the composition of the PARC, including representatives of affected landowners, agrarian reform beneficiaries, and rural women.

Quasi-Judicial Powers of the DAR (Section 50):

- Vests the DAR with primary jurisdiction to determine and adjudicate agrarian reform matters.
- Allows responsible farmer leaders to represent themselves, their fellow farmers, or their organizations in any proceedings before the DAR.

Exclusive Jurisdiction on Agrarian Dispute (Section 50-A):

- No court or prosecutor's office shall take cognizance of cases pertaining to the implementation of CARP, except those provided under Section 57.
- Outlines the process for referring cases alleging agrarian disputes to the DAR for determination and certification.
- Allows agrarian reform beneficiaries or identified beneficiaries and their associations to intervene in cases concerning their individual or collective rights and interests under CARP.

No Restraining Order or Preliminary Injunction (Section 55):

- Except for the Supreme Court, no court in the Philippines shall have jurisdiction to issue any restraining order or writ of preliminary injunction against the PARC, DAR, or any of its duly authorized or designated agencies in any case, dispute or controversy arising from, necessary to, or in connection with the application, implementation, enforcement, or interpretation of this Act and other pertinent laws on agrarian reform.

Prohibited Acts and Omissions (Section 73):

- Lists prohibited acts and omissions, including ownership or possession of agricultural lands in excess of retention limits, forcible entry or illegal detainer by non-qualified beneficiaries, conversion of agricultural land to non-agricultural use, malicious prevention or obstruction of CARP implementation, sale or transfer of lands outside urban centers, sale or transfer of usufructuary rights by beneficiaries, unjustified acts by government officers, undue delay or failure to submit required reports or documents, undue delay in compliance with certification obligations, and other culpable neglect or willful violations.

Penalties (Section 74):

- Outlines penalties for specific violations, ranging from imprisonment of 1 month to 3 years or a fine of ₱1,000 to ₱15,000, to imprisonment of 3 years and 1 day to 6 years or a fine of ₱50,000 to ₱150,000, or imprisonment of 6 years and 1 day to 12 years or a fine of ₱200,000 to ₱1,000,000.

Congressional Oversight Committee on Agrarian Reform (COCAR) (Sections 26-29):

- Creates a COCAR to oversee and monitor the implementation of this Act.
- Outlines the composition, powers, functions, and funding of the COCAR.
- Requires the COCAR to submit periodic reports to Congress on its findings and recommendations.
- Deems information on the amount of just compensation paid to any landowner as public information.

Implementing Rules and Regulations (Section 31):

- Requires the PARC and DAR to provide the necessary implementing rules and regulations within 30 days upon approval of this Act, effective on July 1, 2009.

Funding Source (Section 63):

- Authorizes at least ₱150 billion to further implement CARP until June 30, 2014, with additional amounts as needed.
- Outlines various sources of funding, including proceeds from privatization, recovered ill-gotten wealth, disposition of government properties abroad, agrarian reform operations, official foreign aid grants and concessional financing, yearly appropriations of at least ₱5 billion from the General Appropriations Act, gratuitous financial assistance, and other government funds.
- Considers all funds appropriated as continuing appropriations during the implementation period.
- Requires just compensation payments to landowners to be sourced from the Agrarian Reform Fund.

Conversion of Lands (Section 65):

- After 5 years from award, if the land ceases to be economically feasible for agricultural purposes or the locality has become urbanized, the DAR may authorize the reclassification or conversion of the land and its disposition, subject to conditions.
- Prohibits the conversion of irrigated and irrigable lands.
- Requires the National Irrigation Administration to submit a consolidated data on the location of all irrigable lands within 1 year.

Immunity of Government Agencies from Undue Interference (Section 68):

- No injunction, restraining order, prohibition or mandamus shall be issued by regional trial courts, municipal trial courts, municipal circuit trial courts, and metropolitan trial courts against the DAR, DA, DENR, and Department of Justice in their implementation of the program.

Resolution of Case (Section 30):

- Any case or proceeding involving the implementation of the provisions of this Act which may remain pending on June 30, 2014 shall be allowed to proceed to its finality and be executed even beyond such date.

Repealing Clause (Section 32):

- Repeals Section 53 of Republic Act No. 3844 (Agricultural Land Reform Code) and all other laws, decrees, executive orders, issuances, rules and regulations, or parts thereof inconsistent with this Act.

Separability Clause (Section 33):

- If any section or provision of this Act is declared unconstitutional or invalid, the other sections or provisions not affected shall remain in full force and effect.

Effectivity Clause (Section 34):

- This Act shall take effect on July 1, 2009 and shall be published in at least two newspapers of general circulation.