July 17, 2000

DAR OPINION NO. 14-00

MR. CARMELITO S. ALAIZA, ET  AL.

Kalasungay, Malaybalay

Bukidnon

Dear Mr. Alaiza:

This refers to your Joint Affidavit of Rejection of Valuation which was referred to us by the Land Bank of the Philippines for our comment and appropriate action.

We regret that we cannot grant your request for higher valuation of your land since the same was covered by Operation Land Transfer (OLT) under P.D. No. 27. Executive Order No. 228 has provided a fixed valuation formula applicable to all lands covered by P.D. 27 which shall be based on the Average Gross Production (AGP) as determined by the Barangay Committee on Land Production (BCLP). Land value is computed using the following formula.

Rice Lands                            LV = AGP x 2.5 x P35*

Corn Lands                           LV = AGP x 2.5 P31**

*          government support price for one cavan of 50 kilos of palay on 21 October 1972

**        government support price for one cavan of 50 kilos of corn on 21 October 1972

In connection with your concern, attached is a copy of DAR Administrative Order No. 13, Series of 1994 providing for the grant of an increment of six percent (6%) yearly interest compounded annually based on the land value of OLT-covered lands as determined under existing valuation formula. The six percent (6%) increment formula may, however, apply only to landowners covered by the aforesaid guideline.

We hope to have enlightened you on the matter.

Very truly yours,

(SGD.) FEDERICO A. POBLETE

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Gloria J. Fabia

Director, BLAD

First Department

Atty. Ruben V. Mabagos

Assistant Vice-President

Land Bank of the Philippines

319 Sen. Gil Puyat Ave. Ext.

Makati City