January 2, 1979
MINISTRY MEMORANDUM CIRCULAR NO. 01-79
TO : All Regional Directors District Officers Team Leads and Fieldmen Concerned
SUBJECT : Additional Instructions On The Valuation Of Landholdings With Auxiliary Crops
Further to Memorandum Circular No. 26 dated November 5, 1973 and No. 31 dated December 26, 1973, and in order that land transfer claims in which auxiliary crops were included in the determination of average gross production can be properly evaluated, the following additional instructions on the valuation of auxiliary crops are hereby issued:
EHcaDT
1. Land transfer claims in which the average gross production of auxiliary crops were included should be supported by a certification signed by the landowner or his duly authorized representative and the tenant-farmers to the effect that they had mutually agreed that the latter shall pay the former, annual lease rentals or crop shares on auxiliary crops.
2. In determining the value of the auxiliary crops, the amount of annual rentals paid by the tenant-farmer to the landowner shall be multiplied by a constant factor. For rentals paid in cash, such amount shall be multiplied by a constant factor of 5, then multiplied by 2.5 to arrive at the total value. If the rental was paid in kind, the same shall be multiplied by a constant factor of 5, then multiplied by 2.5 times the price index for such crop. In case of crop shares in kind the same shall be multiplied by a constant factor of 2, then multiplied by 2.5 times the price index for such crop. For ready reference, attached is a Price Index for 1972 of various crops and standard weights and measures of agricultural products compiled by the Bureau of Agricultural Economics. The computations are shown in the following examples:
a. Rental in Cash
Given: Crop — Cabbage
Rental — P200.00
Hence: P200.00 x 5 x 2.5 = P2,500.00
b. Rental in Kind
Given: Crop — Onion
Rental — 10 bags at 20/kilos/bag = 200 kilos
Price Index — P0.78/kilo (Pangasinan)
Hence: 200 kilos x 5 = 1,000.00
1,000.00 x 2.5 x P0.78 = P1,950.00
c. Crop Shares (In kind 50:50)
Given:
Given: Crop — Tobacco
Crop Shares — 200 kilos
Hence: 200 kilos x 2 = 400 kilos
400 x 2.5 = 1000 kilos
1,000 x P2.63 = P2,630.00
In cases where the sharing arrangement is other than a 50:50 sharing ratio, the same shall be computed on a pro-rata basis to arrive at the average gross production.
3. To support land transfer claims with auxiliary crops, the following duly accomplished forms shall be attached:
a) Land Valuation Form 2-A
b) Land Valuation Form 2-B
4. In accomplishing Land Valuation Form 2-B, the following instructions are to be followed:
a. Indicate kind of auxiliary crop planted, also indicate opposite each crop the average gross production and the price thereof per kilo as of October 21, 1972 utilizing the price index;
b. Lease rentals and/or crops shares paid in auxiliary crops to be indicated separately and apart from those paid on rice or corn;
c. In cases where the lease rentals or crop shares on auxiliary crops were paid but included in the rental of the primary crop, then these should be considered as part of the rental for the principal crop. Hence, there should be no separate valuation for such auxiliary crops.
d. In cases where the regional price index of a particular crop under consideration is not available, then the National Price Index for such crop shall be used in computing land value for auxiliary crop.
All orders, circulars, memoranda, rules and regulations or portions thereof inconsistent herewith are hereby revoked, cancelled or modified as the case may be.
Please be guided accordingly.
Diliman, Quezon City, January 2, 1979.
(SGD.) CONRADO F. ESTRELLA
Minister
Land Valuation Form 2-A
C E R T I F I C A T I O N
This is to certify that we _____________________________________ Name of Tenant and ____________________ (Name of Landowner) mutually agreed that lease rental on auxiliary crops are to be paid in cash/kind/shares in the amount of ___________________________ (Pesos/kilos/cavans) of _____________ (Specify Crop) per hectare as of October 21, 1972.
_______________________ ________________________
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 Cabbage P200.00 P1,000.00 P2,500.00 P500.00 P2,000
Juan de la Cruz
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 ---------------------- --------------------------------------------------------
3. --------------------- SIGNATURE OF LANDOWNER
4. ---------------------- NOTED BY:
5 ----------------------
------------------------------------------------
TEAM LEADER
PRICE INDEX FOR 1972
Source: Bureau of Agricultural Economics Ministry of Agriculture
PRICE
QUANTITY VALUE (PESO VALUE)
REGION Per Kilo
I. ILOCOS
Garlic 12,720,300 49,736,400 3.91
Mongo 1,282,900 2,347,700 1.81
Tobacco (all varieties) 19,944,500 52,382,300 2.63
Cassava 9,739,900 3,798,600 0.39
Red Pepper
Peanuts (Unshelled) 360,800 346,400 0.96
Onion 2,424,700 3,030,900 1.25
Vegetables (except
Onion & Irish Potato) 50,820,500 81,483,400 1.34
Beans (Including
Peas) 2,288,100 3,612,100 1.59
Camote 81,154,000 32,461,600 0.40
Squash
Tomatoes 6,560,000 7,478,400 1.14
Turnips
Eggplant 6,300,800 2,772,400 0.44
II. CAGAYAN VALLEY
Peanut 4,893,600 4,697,900 0.96
Mongo 527,400 1,118,100 2.12
Tobacco 17,318,100 38,529,100 2.22
Onion 1,980,500 2,376,600 1.20
Red Creole
Soy Beans (no data)
Havechuelas
III. CENTRAL LUZON
Mongo 5,501,800 8,692,800 1.58
Vegetables 80,636,900 62,776,200 0.78
Peanuts 3,888,300 3,810,500 0.98
Turnips
Watermelon 121,129,500 101,748,800 0.84
Camote 16,236,600 6,819,400 0.42
Eggplant 30,108,200 15,054,100 0.50
Tomatoes 37,534,900 36,658,200 0.98
IV. SOUTHERN LUZON
Cassava 33,744,800 11,428,800 0.34
Patola
Peanut 1,644,200 1,628,900 0.99
Mongo 1,646,300 3,176,600 1.93
Tomatoes
Turnips
Legumes
Garlic 1,723,400 8,022,900 4.66
Onions 850,200 1,104,300 1.30
V. BICOL
Camote 144,304,300 57,721,700 0.40
Peanut 2,810,400 3,203,900 1.41
VI. WESTERN VISAYAS
Mongo 4,214,900 7,249,600 1.72
Peanuts 939,000 1,070,500 1.14
Cadios
Beans 4,333,100 7,384,500 1.70
Cassava 25,357,730 8,368,000 0.33
Tobacco 492,200 1,265,000 2.57
Tomatoes 5,278,900 5,494,600 1.04
Melon
Sandia (watermelon) 3,243,800 2,333,500 0.72
Pepper
Eggplant 10,117,700 5,665,900 0.56
VII. CENTRAL VISAYAS
Tobacco 1,187,400 2,918,600 2.46
Gabi 18,583,200 6,159,600 0.33
Cassava 39,691,800 10,547,400 0.26
Mongo 967,900 1,727,200 1.78
Peanuts 1,457,900 1,677,500 1.15
Camote 43,771,300 15,824,400 0.36
VIII. EASTERN VISAYAS
Peanut 855,100 991,900 1.16
Camote 111,479,000 40,132,400 0.36
IX. SOUTHERN MINDANAO
Mongo 2,839,900 5,481,000 1.91
Cassava 36,566,500 14,260,900 0.93
Tobacco 6,575,300 14,339,700 2.18
Soybeans 159,000 263,800 1.68
Peanut 696,200 793,700
X. NORTHERN MINDANAO
Camote 75,907,700 25,808,600 0.34
Soybeans 112,300 178,600 1.59
XI. WESTERN MINDANAO
Soybeans 51,000 84,800 1.66
Mongo 14,900 28,800 1.93
Peanuts 80,000 91,200 1.14
NATIONAL PRICE INDEX OF VARIOUS CROPS *
Garlic 4.30 Mongo 1.85
Onion 1.25 Peanuts 1.09
Tobacco 2.41 Vegetables 1.06
Cassava .45 Beans 1.60
Camote .38 Tomatoes 1.05
Eggplant .50 Watermelon .78
* The National Price Index of the above crops was taken by getting the average of the regional price index for such crops.
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. HaAIES
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).
Standard Weights & Measures of Agricultural Products
Primary Crops:
1 cavan (1 sack) palay — 50 kilograms, palay net
1 cavan shelled corn — 57 kilograms
Auxiliary Crops:
Cassava
1 sack No. 1 tubers — 50-70 units — 45 kilograms (average)
Camote
1 sack No. 2 tubers — 300-400 units — 40-45 kilograms
Radish
No. of roots per kilogram — 5-7
1 kaing No. 1 roots — 36 kilograms, gross
1 Baguio basket No. 3 — 100-150 roots — 20-25 kilograms, gross
1 Baguio basket No. 2 — 140-200 roots — 35-40 kilograms, gross
Singkamas
1 bungkos (bunch) — bigkis of 5-6 tubers — 5-7 kilograms
Garlic
No. of heads per kilogram — 47
1 bag mesh — 20 kilograms
Onions (Bermuda Onion)
1 bag mesh small — 20 kilograms
Native Onion
1 bungkos (bunch) of onions with tops
dry — 60-75 units — 0.2-0.3 kilograms
Dry Beans and Peanut:
Lima bean or patani (phaseolus lenetus)
1 ganta seed — 2.5 kilograms
Mongo (phaseolus aurous)
1 cavan seed — 58.5 kilograms
Soybean (Glycine max)
1 ganta seed — 22 kilograms
Peanut (common spanish variety)
1 cavan (unshelled) — 25 kilograms
Cabbage:
Weight per head — 0.3-1.5 kilograms — 625 grams (average).
Ampalaya
Weight per fruit, all sizes (long variety) — 125 grams (average)
Weight per fruit (short variety) — 80 grams (average)
Eggplant:
No. of fruits per kilogram — 8.14
Weight per fruit — 105 grams (average)
Green Sitao (Singapore string bean)
1 bundle — 20 grams
50 bundles of 15-16 immature pods each — 1 kilogram
White Sitao:
1 bundle composed of 5 smaller units
of 16-22 pods each — 810 grams
Muskmelon:
Kinalabasa variety — 1.4 kilogram
Baluga — 1.5 kilogram
Valencia — 2.0 kilogram
Kastila — 1.3 kilogram
Imus — 0.96 kilogram
Cantaloupe — 0.7 kilogram
Inalambre — 0.9 kilogram
Tomatoes
No. of fruits per kilogram — 15-20
Watermelon:
Weight per fruit — 1.7 kilograms
Source:
Bureau of Agricultural Economics
Ministry of Agriculture