AN ACT TO GOVERN THE RELATIONS BETWEEN LANDHOLDERS AND TENANTS OF AGRICULTURAL LANDS (LEASEHOLD AND SHARE TENANCY).

Case Overview and Summary

Summary of Republic Act No. 1199 (Agricultural Tenancy Act of the Philippines):

Definitions and General Provisions:
- Defines agricultural tenancy, share tenancy, leasehold tenancy, tenant, landholder, and other key terms. (Sections 3-5)
- Establishes tenancy relationship through verbal or written contract, granting security of tenure to tenant. (Sections 6-8)
- Allows modification of tenancy contracts without prejudicing tenant's security of tenure. (Section 10)
- Requires written and registered tenancy contracts as conclusive evidence. (Sections 11-13)

Share Tenancy:
- Rights of Tenant:
  - Free to work elsewhere when farm obligations allow. (Section 22.1)
  - Provide contributions for production if able. (Section 22.2)
  - Dwelling cannot be removed without consent or severance of relationship. (Section 22.3)
  - Indemnified for labor and expenses if dispossessed. (Section 22.4)
- Obligations of Tenant:
  - Cultivate farm and take care of crop as a good father of a family. (Section 23.1)
  - Inform landholder of any trespass. (Section 23.2)
  - Take reasonable care of work animals and farm implements. (Section 23.3)
  - Not abandon or surrender holdings without just cause. (Section 23.4)
- Prohibitions to Tenant:
  - Cannot work on multiple holdings without landholder's consent if holdings are 5 hectares or more. (Section 24.1)
  - Cannot employ sub-tenant except in case of illness or incapacity. (Section 24.2)
  - Leasehold tenant cannot sub-let or assign lease without lessor's consent. (Section 24.3)
- Rights of Landholder:
  - Choose kind of crop and seeds to plant. (Section 25.1)
  - Require use of fertilizer. (Section 25.2)
  - Inspect tenant's compliance with contract and law. (Section 25.3)
  - Deal with millers or processors if tenant has no representative. (Section 25.4)
- Obligations of Landholder:
  - Furnish tenant with at least 1,000 square meters for dwelling, vegetables, and minor industries. (Section 26.a)
  - Keep tenant in peaceful possession and cultivation of holdings. (Section 26.b)
- Prohibitions to Landholder:
  - Cannot dispossess tenant except for causes enumerated in Section 50 and with court authorization. (Section 27.1)
  - Cannot make tenant bear taxes levied on the land. (Section 27.2)
  - Cannot make tenant bear rent or consideration paid by landholder to third party. (Section 27.3)
- Provisions for Rice Share Tenancy:
  - Share basis for contributions to production on first-class land (normal average yield over 40 cavans/hectare). (Section 32)
  - Share basis for contributions on second-class land (normal average yield 40 cavans/hectare or less). (Section 33)
  - No reimbursement allowed for contributions shouldered by one party after work is completed. (Section 34)
  - Sharing of expenses for final harrowing and transplanting if agreed upon. (Section 35)
  - Additional rights of tenant regarding farming activities and pest control. (Section 36)
  - Additional rights of landholder regarding dikes, irrigation canals, stacking site, and threshing date. (Section 37)
  - Tenant's labor contributions specified. (Section 38)
  - Prohibition on pre-threshing without mutual consent. (Section 39)
  - Crop division to be made at threshing site unless otherwise stipulated. (Section 40)
- Provisions for Crops other than Rice:
  - Parties free to stipulate ratio of crop division, but tenant's share for labor must not be less than 30% after deducting expenses. (Section 41)

Leasehold Tenancy:
- Defines landholder-lessor and tenant-lessee. (Section 42)
- Rights and obligations of tenant-lessee:
  - Right to enter and peacefully enjoy the land. (Section 43)
  - Right to work the land according to best judgment and proven farm practices. (Section 43)
  - Entitled to half the value of reasonable improvements made upon termination. (Section 43)
  - Pay stipulated consideration not exceeding limits in Section 46. (Section 43)
  - Cultivate land as a good father of a family. (Section 43)
  - Take reasonable care of work animals and farm implements provided by lessor. (Section 43)
- Rights of Landholder-Lessor:
  - Inspect premises to ascertain tenant's compliance with contract and law, without coercion or intimidation. (Section 44)
- Rental Payment:
  - Can be made in money, produce, or both. (Section 45)
- Consideration for Use of Land:
  - For ricelands, not more than 30% of gross produce for first-class lands and 25% for second-class lands. (Section 46.a)
  - For lands with fruit trees and other useful plants, additional consideration to be negotiated. (Section 46.b)
  - For sugar lands, fishponds, saltbeds, and livestock lands, governed by stipulation between parties. (Section 46.c)
- Rental of Work Animals, Farm Implements, and Services:
  - Tenant-lessee may use landholder-lessor's work animals, implements, or services for hire based on fair rental value. (Section 47)
  - Fair rental value rates provided in Schedules A, B, and C, subject to revision by Secretary of Agriculture and Natural Resources. (Section 47)
- Loans and Interest:
  - Loans from landholder-lessor payable at stipulated time, with interest not exceeding 8% per annum unless otherwise stipulated. (Section 48)
  - Loan evidenced by written note or memorandum. (Section 48)

Security of Tenure:
- Tenant cannot be dispossessed except for enumerated causes and with court authorization. (Section 49)
- Causes for Dispossession of Tenant:
  - Landholder's bona fide intention to cultivate land personally or through farm machinery, subject to conditions. (Section 50.a)
  - Tenant violates or fails to comply with contract terms or provisions of the Act. (Section 50.b)
  - Tenant's failure to pay agreed rental or deliver landholder's share, unless caused by fortuitous event. (Section 50.c)
  - Tenant uses land for purpose other than specified. (Section 50.d)
  - Share-tenant fails to follow proven farm practices. (Section 50.e)
  - Tenant negligently permits serious injury to land, impairing its productive capacity. (Section 50.f)
  - Conviction of tenant or immediate family member of a crime against landholder or family. (Section 50.g)
- Burden of proof for lawful cause of ejectment rests on landholder. (Section 51)

Special Provisions:
- Duties of Secretary of Agriculture and Natural Resources, including educational programs, revising rental rates, facilitating contract preparation, conducting surveys and research, and submitting annual report. (Section 52)
- Duties of Secretary of Justice, including formulating national enforcement program. (Section 53)
- Provision for legal representation of indigent tenants. (Section 54)
- Applicability of general laws not inconsistent with the Act. (Section 55)
- Grave doubts to be solved in favor of the tenant. (Section 56)
- Penal provision for violation of the Act, with fine not exceeding ₱2,000 or imprisonment not exceeding 1 year, or both. (Section 57)
- Separability of provisions. (Section 58)
- Repealing of inconsistent laws. (Section 59)
- Effective date upon approval. (Section 60)

Schedules:
- Schedule A: Fair rental value rates for work animals and farm implements other than machinery.
- Schedule B: Fair rental value rates for farm machinery, tractors, equipment, engines, motors, and pumps.
- Schedule C: Rates to be charged by landholder for services rendered in farm operation.