June 25, 1979
MINISTRY MEMORANDUM CIRCULAR NO. 11-79
TO : All Regional Directors, District Officers, Team Leaders & Fieldmen, To all Concerned
SUBJECT : Guidelines Governing Conversion of Private Agricultural Lands to Non-Agricultural Purposes or to Change/Shift to Other Agricultural Uses
I. Scope of Application
II. Who May Petition for Conversion
1. Owners of land not covered by P.D. 27.
2. Farmer-beneficiaries of P.D. 27.
III. General Criteria for Conversion
1. No private agricultural lands which are tenanted, fully irrigated and devoted to rice and/or corn may be converted to non-agricultural uses, except by the government or private entities granted the power of eminent domain.
2. Farmer-beneficiaries of P.D. 27 may convert their landholdings acquired under the said decree into other agricultural uses, or non-agricultural purposes, provided, that the conversion to non-agricultural purposes is by reason of the change in the predominant land use brought about by urban development or zoning regulations which render their landholdings more economically suitable to non-agricultural uses, and provided, further, that the farmer-beneficiaries shall pay their obligations to the Land Bank in full or such other arrangements as shall be made between him and the Bank.
IV. Venue of Application
V. Operational Procedures
1. Petition for conversion to non-agricultural uses
a. All applications for conversion filed with the Ministry of Agrarian Reform Field Team (MARFT) shall be processed to determine the completeness of the application and accompanying documents as enumerated in Rule V of the Joint Memorandum of Agreement of the Ministry of Agrarian Reform (MAR), Human Settlement Regulatory Commission (HSRC), and Ministry of Local Government and Community Development (MLGCD).
b. The MAR Field Team Office shall immediately effect proper investigation and/or verification of the following:
1. Name of Petitioner; registered owner as of October 21, 1972 and of present owner;
2. Names and addresses of tenants, if any;
3. Area and location of the land;
4. Whether covered by OLT or within the retained area;
5. Land category including crops planted and the corresponding average gross production thereof;
6. If land is within the retained area, the written conformity of tenant/tenants to the conversion and the agreement relative to the payment of disturbance compensation and the corresponding amount including all other considerations or concessions;
7. If the disturbance compensation was already paid, determine the amount whether it is in accordance with the provisions of R.A. 3844, as amended;
8. Location of land in relation to existing roads, community, commercial and industrial sites, actual land use/development, community needs and basic services and facilities in the barangay and/or in exceptional cases, the municipal level;
9. Verify the other major potential uses of the land and whether the proposed conversion is in accordance with the zonal improvement plan of the municipality;
c. After due investigation; and/or verification by the MAR Field Team Office, the Team Leader shall then prepare a written report and submit the same with his recommendations and all necessary documents pertinent thereto to the District Officer as soon as possible.
The District Officer shall immediately evaluate the report submitted, and if found to be in order, shall submit the same to the Regional Office with his recommendation. The District Officer may however conduct further investigation and/or verification if the circumstances so warrant.
d. The Regional Director shall review the report submitted and if found to be in order, the same shall be transmitted to the Ministry of Agrarian Reform Central Office thru the Bureau of Land Acquisition, Distribution and Development (BLADD) with his recommendation.
e. The BLADD jointly with the Bureau of Land Tenure Improvement (BLTI) shall evaluate and review the reports and supporting documents. If the application for conversion is found to be meritorious, the same shall be referred to the Ministry of Local Government and Community Development and Human Settlement Regulatory Commission for their comments and/or recommendation as provided for in the Memorandum of Agreement.
f. Upon receipt of the comments/recommendation from MLGCD and HSRC, the BLADD and BLTI shall jointly review the reports and prepare its report and the proposed action for submission to the Minister thru the Bureau of Agrarian Legal Assistance (BALA).
2. Petition for Change and/or Shift to Other Agricultural Uses
a. All applications for change and/or shift to other agricultural uses filed with the MAR Field Teams shall be supported by a certification as to the suitability of the land to the proposed agricultural use, issued by a duly authorized representative of the Ministry of Agriculture or the Ministry of Natural Resources, as the case maybe.
b. Upon receipt of the application, verification and/or investigation shall be conducted by MARFT and on the basis of which a report shall be submitted by the Team Leader together with his recommendation to the District Officer. AaECSH
c. The District Officer shall immediately evaluate the report submitted and if found to be in order, shall submit the same with his recommendation for action by the Regional Director.
VI. Nature and Form of Action
Actions relative to change, or shift to other agricultural uses shall be signed by the Regional Director.
All Orders, Circulars and Memoranda which are inconsistent herewith are hereby revoked, cancelled or modified as the case maybe.
(SGD.) CONRADO F. ESTRELLA
Minister
ANNEX "A"
District Office Address
C E R T I F I C A T I O N
This Certification is issued upon the request of _____________________ (name of applicant) pursuant to Circular No. 14 of the Ministry of Justice, dated 15 March, 1979.
___________________________
(Date)
_________________________
(District Officer)
NOTE: THIS CERTIFICATION WILL NOT PRECLUDE FURTHER VERIFICATION AND THEREFORE DOES NOT NECESSARILY MEAN EXEMPTION FROM LAND TRANSFER COVERAGE.
Copy furnished:
The Ministry of Agrarian Reform
Attn.: Center for Operation Land Transfer (COLT)
Diliman, Quezon City
The Regional Director
MAR, Region ________
____________________
(Address)
The Register of Deeds
_________________
(Address)
1st Indorsement
ART. NO. ________________
______________________________________________________________
(Address)
______________________________________________________________
(Date)
____________________________
(Tax Declaration No.)
( ) has not yet been subjected to Operation Land Transfer pursuant to PD 27 as of ___________________, 1979
( ) has already been subjected to Operation Land Transfer as of ________________________, 197 _________________
( ) from investigation conducted, it is evident that the land is within the coverage of PD 27.
In view of the foregoing, it is respectfully recommended that the within request be ________________________________________________________
(Indicate whether granted or
____________________________________________ Attached hereto is the necessary Certification for your signature.
__________________________
(Signature of the Team Leader)
ANNEX "B"
District Office Address
__________________
(Date)
___________________________
___________________________
___________________________
___________________________
Sir/Madam:
(Indicate OCT/TCT/Tax Declarant No.)
in the name of ________________________________________________________
(registered owner or owners)
situated at ________________________________________________________, which is the subject of _________________________________ entered into by and between _________________________ and ________________________________ identified under Doc. No. ______________________, Page No. ____________, Book No. ________________________ s. 197 ___________ of the notarial register of _________________________________________________________________
(Notary Public)
has been subjected to Operation Land Transfer pursuant to P.D. No. 27. as of ____________________, 197 _____ or from investigation conducted, it is evident that the land is within the coverage of P.D. No. 27. Consequently, your request for certification cannot be given favorable consideration.
Very truly yours,
___________________
(District Officer)
Copy furnished:
The Ministry of Agrarian Reform
Attn.: Center for Operation Land Transfer (COLT)
Diliman, Quezon City
The Regional Director
MAR, Region ______
_________________
(Address)
The Register of Deeds
________________
(Address)
Land Valuation Form 2-A
C E R T I F I C A T I O N
Name of Tenant
_________________________ mutually agreed that lease rental on auxiliary crops
Name of Landowner
are to be paid in cash/kind/shares in the amount of __________ (Pesos/kilos/cavans) of _________________ per hectare as of October 21, 1972.
(Specify Crop)
_______________________ ________________________
NAME OF TENANT NAME OF LANDOWNER
NOTED BY:
____________________
MAR TEAM LEADER
Land Valuation Form 2-B
VALUATION OF AUXILIARY CROPS
(1) NAME OF LANDOWNER ________________
LOCATION OF FARM ___________________
(2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Name of Tenant Auxiliary Lease Rental Crop Shares Average Total Price Index Total Total Rent- Net
Crops Cash Kind (Quantity) Gross Prod. AG P Per Kilo Value al Paid Value
SAMPLE I —
In Cash
Juan de la Cruz Cabbage P200.00 P1,000.00 P2,500.00 P500.00 P2,000
SAMPLE II —
In Kind
Pedro Melo Onion — 200.00 kls — 1,000.00 2,500 P1.25 3,125.00 500.00 2,625
SAMPLE III —
Crop Shares
Jose Reyes Tobacco — — 200.00 kls 400 kls. 1,000 2.63 2,630.00 300.00 2,300
SIGNATURE OF TENANTS:
1. ____________
2 ____________ __________________________________________
SIGNATURE OF LANDOWNER
3. ____________
4. ____________ NOTED BY:
5 ____________
_________________________________________
TEAM LEADER
Specific Instructions In Accomplishing Land Valuation Form 2-B
1. Indicate the Name of Landowner and Location of farm.
2. Name of Tenant — indicate full name of tenant.
3. Kind of Auxiliary Crops — indicate the kinds of auxiliary crops to be valued. EHaCID
4. Lease Rental (Cash/Kind) — indicate the value/quantity of lease rental paid or agreed upon to be paid as of October 21, 1972.
5. Crop Shares — if under sharing arrangement indicate quantity of auxiliary crops shared by the landowner as of October 21, 1972.
6. Average Gross Production — value/quantity of rentals paid in cash/kind multiplied by constant factor of 5 equals AGP.
Under sharing arrangement the quantity of crop shared multiplied by a constant factor of 2 equals the AGP.
7. Total AGP — average gross production (in kind or crop shares) times constant factor of 2.5.
8. Price Index — prices of various crops as of 1972 compiled by the Bureau of Agricultural Economics.
9. Total Value — cash value of average gross production times the constant factor of 2.5.
Average gross production in kind multiplied by constant factor of 2.5 times price index equals the total value of the auxiliary crops.
10. Total Rental Paid — total rentals or value of crops paid to landowners on crops planted and harvested after October 21, 1972.
11. Net Value — total value minus total lease rental paid.
12. Justification for the use of constant factors:
A constant factor of five (5) is used where the rental is paid in cash inasmuch as under Section 30 of R.A. 1199 as amended, the sharing ratio between the landowner and the tenant-farmer is 80%-20% in favor of the latter. Twenty per centum represents 1/5 of the produce, hence, to arrive at the average produce, said rental is multiplied by the constant factor of five (5).
A constant factor of two (2) is used where the consideration for the use of the land is payable in crop shares and the sharing ratio is fifty-fifty (50-50). Fifty per centum represents 1/2 of the produce, hence, to arrive at the average produce, said crop share is multiplied by the constant factor of two (2).