EXECUTIVE ORDER NO. 229 July 22, 1987
PROVIDING THE MECHANISMS FOR THE IMPLEMENTATION OF THE COMPREHENSIVE AGRARIAN REFORM PROGRAM
WHEREAS, by virtue of Proclamation No. 131 dated July 22, 1987 the Comprehensive Agrarian Reform Program has been instituted;
WHEREAS, there is a need to provide for the mechanisms to start the implementation of the program;
WHEREAS, public hearings and consultations were held to determine appropriate mechanisms capable of being established.
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:
CHAPTER I. COVERAGESec. 1. Scope. The Comprehensive Agrarian Reform Program (CARP) shall cover, regardless of tenurial arrangement and commodity produced, all public and private agricultural lands as provided in Proclamation No. 131 dated July 22, 1987, including whenever applicable in accordance with law, other lands of the public domain suitable to agriculture.
Sec. 2. Implementation. Land acquisition and distribution shall be implemented as provided in this Order as to all kinds of...
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Executive Orders
Providing the Mechanisms For the Implementation of the Comprehensive Agrarian Reform Program
Executive Order No. 229
Summary of Executive Order No. 229 (July 22, 1987)
Providing the Mechanisms for the Implementation of the Comprehensive Agrarian Reform Program
Coverage and Scope (Sections 1-4):
- The Comprehensive Agrarian Reform Program (CARP) covers all public and private agricultural lands, regardless of tenurial arrangement and commodity produced. (Section 1)
- Land acquisition and distribution shall be implemented as provided in the Order, subject to priorities and reasonable retention limits prescribed by Congress. (Section 2)
- Lands used for national defense, school sites, religious purposes, penal colonies, and government research/quarantine centers are exempted. (Section 3)
- All natural and juridical persons owning, leasing or managing agricultural lands shall file a sworn statement with the Assessor's Office within 180 days, including details such as land description, income, tenants, crops, mortgages, leases, and declared fair market value. Failure to register will result in the government basing the valuation on the Assessor's value. (Section 4)
Private Land Acquisition (Sections 5-7):
- The DAR shall publish its decision to acquire the land and notify the landowners, offering compensation based on the landowner's declared fair market value. (Section 5)
- If the landowner accepts the offer, the Land Bank of the Philippines (LBP) shall pay the purchase price within 15 days after the landowner surrenders the title. (Section 5)
- If the landowner rejects or does not reply, the DAR shall conduct administrative proceedings to determine compensation, and the LBP shall establish a trust fund for the landowner. (Section 5)
- The landowner can bring the matter to court for determination of just compensation. (Section 5)
- The LBP shall compensate the landowner based on the declared fair market value, subject to controls by the PARC, with payment options including bonds, cash, or other modes. (Section 6)
- The LBP shall assist landowners with investment information, bond conversion/exchange, and bond marketing. (Section 7)
Land Transfer, Utilization, and Sharing (Sections 8-16):
- Landowners have the option of entering into a voluntary agreement for direct transfer of their lands to eligible beneficiaries, subject to DAR approval. (Section 8)
- The government shall purchase all agricultural lands voluntarily offered for sale, exempt from capital gains tax and other taxes/fees. (Section 9)
- Corporate landowners may give workers the right to purchase a proportion of the capital stock corresponding to the land assets, subject to PARC approval. (Section 10)
- Existing leases, management contracts, and mortgages may continue for up to 5 years, subject to renegotiation or DAR determination upon land distribution. (Section 11)
- Beneficiaries shall pay for the land in 30 equal annual payments at 6% interest, with a 2% rebate for timely payments, not exceeding 10% of the land's annual gross production value. (Section 12)
- Upon land transfer, each beneficiary who actually farms the land shall be eligible for a production loan from the LBP to finance one crop cycle. (Section 13)
- Lands may be transferred to beneficiaries collectively or individually, with each beneficiary having an undivided share equivalent to the applicable retention limit. (Section 14)
- The DENR shall distribute alienable and disposable public lands for agriculture to qualified beneficiaries certified by the DAR and DENR. (Section 15)
- Individuals or entities owning/operating agricultural lands with gross sales over ₱5 million per annum shall execute a production sharing plan, distributing at least 2.5% of gross sales as compensation to farmworkers. (Section 16)
Implementing and Coordinating Mechanisms (Sections 17-19):
- The DAR is vested with quasi-judicial powers to determine and adjudicate agrarian reform matters, with exclusive original jurisdiction except for matters under the DENR and DA. (Section 17)
- The Presidential Agrarian Reform Council (PARC) is created to coordinate the implementation of the CARP and ensure timely delivery of support services. (Section 18)
- The PARC shall formulate and implement policies, rules, and regulations necessary for the CARP implementation, including recommended small farm economy areas, acquisition and redistribution schedules, and control mechanisms for evaluating landowner's declared fair market value. (Section 18)
- The Barangay Agrarian Reform Council (BARC) shall be convened at the barangay level to participate in the implementation, mediate conflicts, and perform other functions delegated by the PARC or DAR. (Section 19)
Financing (Sections 20-21):
- The Agrarian Reform Fund is created with an initial amount of ₱50 billion to cover the estimated cost of the CARP from 1987 to 1992, sourced from the sale of assets of the Asset Privatization Trust (APT), ill-gotten wealth recovered by the PCGG, and other sources. (Section 20)
- A supplemental appropriation of ₱2.7 billion is provided to cover the CARP's 1987 requirements, sourced from the sale of ill-gotten wealth and APT asset sales. (Section 21)
Sanctions (Sections 22-23):
- Persons who prematurely enter the land to avail themselves of the rights and benefits shall be permanently disqualified and forfeit their rights. (Section 22)
- Persons who willfully prevent or obstruct the implementation of the CARP shall be liable for contempt. (Section 23)
General Provisions (Sections 24-31):
- The rights of indigenous cultural communities to their ancestral lands are protected. (Section 24)
- No injunction, restraining order, prohibition or mandamus shall be issued by lower courts against the DAR, DA, DENR, and DOJ in their implementation of the CARP. (Section 25)
- The PARC is authorized to call upon the assistance and support of other government agencies, bureaus, and offices, including government-owned or controlled corporations. (Section 26)
- Presidential Decree No. 27 shall continue to operate with respect to rice and corn lands, and Republic Act No. 3844 and other agrarian laws not inconsistent with this Order shall have suppletory effect. (Section 27)
- All Registers of Deeds are directed to register patents, titles, and documents required in the CARP implementation free from payment of all fees. (Section 28)
- A separability clause is included. (Section 29)
- All laws, issuances, decrees or any part thereof inconsistent with this Order are repealed or amended accordingly. (Section 30)
- The Order shall take effect 15 days after publication in the Official Gazette or a newspaper of general circulation. (Section 31)
Providing the Mechanisms for the Implementation of the Comprehensive Agrarian Reform Program
Coverage and Scope (Sections 1-4):
- The Comprehensive Agrarian Reform Program (CARP) covers all public and private agricultural lands, regardless of tenurial arrangement and commodity produced. (Section 1)
- Land acquisition and distribution shall be implemented as provided in the Order, subject to priorities and reasonable retention limits prescribed by Congress. (Section 2)
- Lands used for national defense, school sites, religious purposes, penal colonies, and government research/quarantine centers are exempted. (Section 3)
- All natural and juridical persons owning, leasing or managing agricultural lands shall file a sworn statement with the Assessor's Office within 180 days, including details such as land description, income, tenants, crops, mortgages, leases, and declared fair market value. Failure to register will result in the government basing the valuation on the Assessor's value. (Section 4)
Private Land Acquisition (Sections 5-7):
- The DAR shall publish its decision to acquire the land and notify the landowners, offering compensation based on the landowner's declared fair market value. (Section 5)
- If the landowner accepts the offer, the Land Bank of the Philippines (LBP) shall pay the purchase price within 15 days after the landowner surrenders the title. (Section 5)
- If the landowner rejects or does not reply, the DAR shall conduct administrative proceedings to determine compensation, and the LBP shall establish a trust fund for the landowner. (Section 5)
- The landowner can bring the matter to court for determination of just compensation. (Section 5)
- The LBP shall compensate the landowner based on the declared fair market value, subject to controls by the PARC, with payment options including bonds, cash, or other modes. (Section 6)
- The LBP shall assist landowners with investment information, bond conversion/exchange, and bond marketing. (Section 7)
Land Transfer, Utilization, and Sharing (Sections 8-16):
- Landowners have the option of entering into a voluntary agreement for direct transfer of their lands to eligible beneficiaries, subject to DAR approval. (Section 8)
- The government shall purchase all agricultural lands voluntarily offered for sale, exempt from capital gains tax and other taxes/fees. (Section 9)
- Corporate landowners may give workers the right to purchase a proportion of the capital stock corresponding to the land assets, subject to PARC approval. (Section 10)
- Existing leases, management contracts, and mortgages may continue for up to 5 years, subject to renegotiation or DAR determination upon land distribution. (Section 11)
- Beneficiaries shall pay for the land in 30 equal annual payments at 6% interest, with a 2% rebate for timely payments, not exceeding 10% of the land's annual gross production value. (Section 12)
- Upon land transfer, each beneficiary who actually farms the land shall be eligible for a production loan from the LBP to finance one crop cycle. (Section 13)
- Lands may be transferred to beneficiaries collectively or individually, with each beneficiary having an undivided share equivalent to the applicable retention limit. (Section 14)
- The DENR shall distribute alienable and disposable public lands for agriculture to qualified beneficiaries certified by the DAR and DENR. (Section 15)
- Individuals or entities owning/operating agricultural lands with gross sales over ₱5 million per annum shall execute a production sharing plan, distributing at least 2.5% of gross sales as compensation to farmworkers. (Section 16)
Implementing and Coordinating Mechanisms (Sections 17-19):
- The DAR is vested with quasi-judicial powers to determine and adjudicate agrarian reform matters, with exclusive original jurisdiction except for matters under the DENR and DA. (Section 17)
- The Presidential Agrarian Reform Council (PARC) is created to coordinate the implementation of the CARP and ensure timely delivery of support services. (Section 18)
- The PARC shall formulate and implement policies, rules, and regulations necessary for the CARP implementation, including recommended small farm economy areas, acquisition and redistribution schedules, and control mechanisms for evaluating landowner's declared fair market value. (Section 18)
- The Barangay Agrarian Reform Council (BARC) shall be convened at the barangay level to participate in the implementation, mediate conflicts, and perform other functions delegated by the PARC or DAR. (Section 19)
Financing (Sections 20-21):
- The Agrarian Reform Fund is created with an initial amount of ₱50 billion to cover the estimated cost of the CARP from 1987 to 1992, sourced from the sale of assets of the Asset Privatization Trust (APT), ill-gotten wealth recovered by the PCGG, and other sources. (Section 20)
- A supplemental appropriation of ₱2.7 billion is provided to cover the CARP's 1987 requirements, sourced from the sale of ill-gotten wealth and APT asset sales. (Section 21)
Sanctions (Sections 22-23):
- Persons who prematurely enter the land to avail themselves of the rights and benefits shall be permanently disqualified and forfeit their rights. (Section 22)
- Persons who willfully prevent or obstruct the implementation of the CARP shall be liable for contempt. (Section 23)
General Provisions (Sections 24-31):
- The rights of indigenous cultural communities to their ancestral lands are protected. (Section 24)
- No injunction, restraining order, prohibition or mandamus shall be issued by lower courts against the DAR, DA, DENR, and DOJ in their implementation of the CARP. (Section 25)
- The PARC is authorized to call upon the assistance and support of other government agencies, bureaus, and offices, including government-owned or controlled corporations. (Section 26)
- Presidential Decree No. 27 shall continue to operate with respect to rice and corn lands, and Republic Act No. 3844 and other agrarian laws not inconsistent with this Order shall have suppletory effect. (Section 27)
- All Registers of Deeds are directed to register patents, titles, and documents required in the CARP implementation free from payment of all fees. (Section 28)
- A separability clause is included. (Section 29)
- All laws, issuances, decrees or any part thereof inconsistent with this Order are repealed or amended accordingly. (Section 30)
- The Order shall take effect 15 days after publication in the Official Gazette or a newspaper of general circulation. (Section 31)