July 6, 1995

DAR OPINION NO. 31-95

Atty. Jesse Rey M. Silvosa

Chief, Legal Assistance Division

DARPO, Surigao City

Dear Atty. Silvosa:

This has reference to your query as to whether or not a cooperative can acquire more than five (5) hectares of agricultural land.

As a general rule, a cooperative cannot legally acquire more than five (5) hectares of agricultural land. This is expressly provided in Section 73(a) of R.A. 6657 which prohibits the ownership or possession, for the purpose of circumventing CARL, of agricultural lands in excess of total retention limits or award ceilings by any person, natural or juridical. The only exception to this is when the land is under collective ownership by farmer-beneficiaries pursuant to paragraph 3, Section 25 and paragraph 3 Section 29 of CARL.

Please be guided accordingly.

Very truly yours,

(SGD.) HECTOR D. SOLIMAN
Assistant Secretary Legal Affairs Office