December 26, 1973

DEPARTMENT MEMORANDUM CIRCULAR NO. 31-73

TO                :     All DAR Regional Directors, District Officers and Team Leaders

SUBJECT    :     Scheme for the Immediate Payment to Landowners as an Exception to the Regular Procedure Provided for under Memorandum Circular No. 26

            The Department, as of December 17, 1973, has already issued 207,287 land transfer certificates to 144,424, tenant-tillers cultivating 259,082 hectares. It therefore, becomes desirable that landowners be paid of their landholdings at the earliest possible time.   CSHDTE

            The scheme described below is prescribed to hasten the implementation of Presidential Decree No. 27 in view of the demands of landowners for early payment of their lands covered by Operation Land Transfer. Agreement between landowners and tenant-farmers as to average gross production of farm holdings can be a basis for the determination of the value of the landowner's land, provided, the same is within the context of the said Decree and subject to the approval of the undersigned.

         In case landowners and tenant-farmers cannot agree on the average gross production of the land, the matter shall be referred to the Barrio Committee created under Department Circular No. 26, dated November 5, 1973.

P R O C E D U R E

            A form entitled "Landowner-Tenant Production Agreement shall be used for this purpose. This form partly filled-in with information, shall be generated by the National Computer Center (NCC) and to be forwarded to Regional Directors, who in turn will distribute same to District Officers concerned, and ultimately to Team Leaders for immediate implementation. The accomplished form shall be transmitted to DAR Central Office soonest possible in order that the landowners concerned be paid as early as the later part of January, 1974.

            The parts filled-in by the National Computer Center will be those of: (a) Name of Landowner, (b) Location of Farm, (c) Col. No. 2 (Certificates of Land Transfer Number), (d) Col. No. 3 (Name of Tenant), (e) Col. 4 (Area covered by Land Transfer Certificates, in hectares).

Instruction in filling-up the rest of the blanks and columns are as follows:

1.         All data in said form shall be fed to the computerization machine. It is therefore requested, that entries should be made clear and legible. Words and statements should be typed or written in block-lettering.

2.         Address — This is the present address of the Landowners. State the name of barrio, municipality and province, if landowner is presently residing in the rural areas, the number and name of Street, District and City, if residing in the urban areas.   ESCacI

3.         The Mode of Payment Desired — Indicate in the blank the letter corresponding to the desired mode of payment stating few words, or, a phrase, as underlined below:

A.        Cash Payment of 10% and balance in 25 years tax free 6% Land Bank bonds;

B.        Payment of 30% in prefer shares of stock issued by the bank and balance in 25-year tax free 6% Land Bank bonds;

C.        Full guarantee on the payment of the fifteen (15) equal annual amortizations to be made by the tenant-farmers;

D.        Payment through the establishment of Annuities or pensions with insurance; and

E.         Exchange arrangement for government stocks in government owned or controlled corporations or private corporations where the government has holdings;

4.         Location of Farm — State the name of the barrio municipality and province the whereabouts of the farm.

5.         Area of Farm (Has.) — State here the area of the farm in hectares, covered by the Title of the Land.

6.         Title No. — Indicate the title number, if any, of landowner's land covered by Land Transfer Certificates.

7.         To Whom Mortgaged — Indicate here the name of the bank, financing institution or individual, if said land is mortgaged.

8.         Address of Mortgagee — Give the exact address of the mortgagee

9.         Amount of Mortgage — Indicate the amount of the mortgage indebtedness in pesos.

10.       Area — State here the hectarage of land covered by mortgage.

11.       Column No. 5 (Land Category) — Indicate whether the land is (a) Irrigated (b) Unirrigated or (c) Upland.   AHEDaI

12.       Column Nos. 6 to 9 (Average Production — Rice, Corn Auxiliary, total) — This has to be filled-up only after the landowner and the tenant have agreed in the figures of production. It is understood that the totality of product be that of one year for rice, corn and auxiliary. Put the absolute figure (production in kind) and above said figure, the equivalent amount in pesos in parenthesis, using the price of the support buying National Grains Authority for said grains for conversion. For the auxiliary crop, convert same to its palay equivalent in cavans and above such figure the amount in pesos using again the same NGA support buying price. Fill up the total with pesos by adding the value of Column Nos. 6 to 8.

13.       Column No. 10 (Lease/Rental Paid since October 21, 1972) — State the amount of rental paid in pesos. If rental has been paid in kind, state the peso equivalent using the support buying price of the National Grains Authority as basis. This is for the purpose of computing the amount to be credited as amortization payment of the land.

            Rentals to be considered as amortization payment, shall be those paid for crops planted after October 21, 1972 and this should appear in the column. Rentals paid for crops standing on October 21, 1972, shall not be considered as part of amortization payment and therefore should not be included in this column.

14.       Columns No. 11 and 12 (Certification — Landlords signature and Tenant's Signature) — This space is intended for the signature of landowner and tenants. It is understood that once the landowner and tenants signed these spaces, both agreed to the average production as stated under Columns Nos. 6 and 9, and such production data shall be used in the determining the value of the land.

15.       Witness — The witness shall be the DAR Representative who will sign above his/her typed or printed name. Below his/her name, print his official position and Team Number.   HDTCSI

            This Circular modifies Memorandum Circular No. 26, dated November 5, 1973.

(SGD.) CONRADO F. ESTRELLA
Secretary