November 15, 2000

DAR OPINION NO. 41-00

Mr. Cezar D. Baron

3-25 Pacimar Estate

Jesus St., Angeles City

Dear Mr. Baron:

This has reference to your letter inquiring whether or not you have the right to a share in the second rice crop harvest from your riceland, with an area of 3.3734 hectares, located in Barrio Pangotlan, Mexico, Pampanga.

Section 4 of R.A. No. 3844, as amended provides in part: "Agricultural share tenancy, as herein defined, is hereby declared to be contrary to public policy and shall be abolished . . ." Section 5 of the same law further provides: "The agricultural leasehold relation shall be established by operation of law in accordance with Section four of this Code." Pursuant to the aforequoted provisions of law, agricultural share tenancy has been abolished, and, in its stead, agricultural leasehold relation has been established. Thus, a landowner shall now receive leasehold rental for the use of his land rather than his share on the harvest.

Under Section 34 of R.A. No. 3844, as amended, the consideration for the lease of riceland not be more than the equivalent of twenty-five per centum of the average normal harvest during the three agricultural years immediately preceding the date the leasehold was established, after deducting the amount used for seeds and the cost of harvesting, threshing, loading, hauling and processing, which ever are applicable. Corollarily, "agricultural year" has been defined in Section 166 (4) of R.A. No. 3844, as amended, as the period of time required for raising a particular agricultural product, including the preparation of the land, sowing, planting and harvesting of crops and, whenever applicable, threshing of said crops: Provided, however, That in case of crops yielding more than one harvest and one planting, "agricultural year" shall be the period, from the preparation of the land to the first harvest and thereafter from harvest to harvest. In both cases, the period may be shorter or longer than a calendar year.

In view of all the foregoing provisions of law, it is believed that the landowner is entitled to receive his annual lease rental for the use of his riceland, which shall be on a per "agricultural year" basis, from harvest to harvest.

Thank you for communicating with us and 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:

The Provincial Agrarian Reform Officer

DAR-Provincial Office

Del Pilar, San Fernando Pampanga

The Municipal Agrarian Reform Officer

DAR-Municipal Office

Mexico, Pampanga