November 14, 1995
DAR OPINION NO. 73-95
Mr. Hermenegildo M. Trinidad
Gochan Subdivision
Banawa, Cebu City
Dear Mr. Trinidad:
This has reference to your request for assistance concerning your claim for compensation for your 62.7611-hectare landholding covered under PD 27. According to the documents attached to your letter as well as your own narration, you and the farmers of subject landholding agreed in March 1987 to a P5,000-per-hectare value thereof, upon the suggestion of then DAR Team Manager Fidel A. Tutor; that said agreement could not, however, serve as the basis for computation of the land value because the same had not been forwarded to DARCO as of 18 August 1989, as required under DAR AO No. 2, Series of 1987; that consequently, the LBP returned the claim folder to DAR for revaluation of the landholding on the basis of the Average Gross Production (AGP) as determined by the Barangay Committee on Land Production (BCLP); and that you have been informed by our MARO Ancog that if the value will be based on said AGP, the same will most likely be less than the amount previously agreed upon.
You now inquire on whether you can cancel the documents which Mr. Tutor asked you to sign and whether you could receive payment for the land in your lifetime.
Executive Order No. 228 which took effect on 18 August 1987 mandates that the valuation of rice and corn lands covered by PD 27 which were unvalued as of said date shall be based on the AGP determined by the BCLP, in accordance with Department Memorandum Circular No. 26, Series of 1973 and related issuances and regulations of the DAR. Pursuant to said provision, DAR A.O. No. 2, Series of 1987 provides that the production agreement between the landowner and the tenants shall be the basis for land compensation only if said agreement had been forwarded to DAR Central Office as of 18 August 1987. Inasmuch as your production agreement had not been forwarded to DARCO as of said cut-off date, the same could not be the basis for land compensation but rather the AGP as determined by the BCLP. However, since as of 1987 your 62-hectare landholding had been fully covered under PD 27 and you have not been paid for the value thereof, you are entitled to the 6% increment on the value of your land under DAR AO No. 13, Series of 1994. We have therefore directed our field office to return your folder to the LBP-LVO for adjustment of your claim pursuant to said guidelines (copy of letter attached). We advise that you give your full cooperation to LBP for the speedy processing of your claim.
We hope to have been of assistance to you.
Very truly yours,
(SGD.) HECTOR D. SOLIMAN
Assistant Secretary Legal Affairs Office
Copy furnished:
OSEC
Doc. No. 95100522
PARO Paulino R. Tudlasan
DAR Tagbilaran City
MARO Margarita P. Ancog
Department of Agrarian Reform
Carmen, Bohol