December 23, 1999
DAR OPINION NO. 83-99
Mr. Pedro F . Galvez, Jr.
69 Molave, Monte Vista Subdivision
Marikina City
Dear Mr. Galvez:
This is in reply to your letter seeking information/opinion on the following queries, to wit:
1. What are the steps in the acquisition of agricultural lands both under R.A. No. 6657 and P.D. No. 27?
2. What is the retention right of landowners under R.A. No. 6657 and P.D. No. 27?
3. a) What is the role of the Department of Agrarian Reform in the reclassification of land from agricultural to residential?
b) What is the policy of the DAR on lands already classified as residential and with existing Development Permit?
4. What law or rule governs land valuation and determination of just compensation? How is this related with the doctrine enunciated in the case of Association of Small Landowners in the Philippines, Inc. et al. vs. The Honorable Secretary of Agrarian Reform?
Relative to your query on the procedures in the acquisition of agricultural lands both under R.A. No. 6657 and P.D. No. 27, the provisions of DAR A.O. No. 2, Series of` 1996, as amended by A.O. No. 1. series of 1998 (Revised Rules and Procedures Governing the Acquisition of Agricultural Lands Subject of Voluntary Offer to Sell and Compulsory Acquisition pursuant to R.A. No. 6657) and Executive Order No. 228 (Declaring Full Land Ownership to Qualified Farmer Beneficiaries covered by P.D. No. 27; Determining the Value of Remaining Unvalued Rice and Corn and Subject of P.D. No. 27; and Providing for the Manner of Payment by the Farmer Beneficiary and Mode of Compensation to the Landowner) apply.
With regard to the retention right of landowners under P.D. No. 27, said law provides that the landowner may retain not more than seven (7) hectares if such landowner is cultivating such area or will now cultivate it. Under R.A. No. 6657, the retention right is limited to a maximum of five (5) hectares, provided, that landowners whose lands have been covered by P.D. No. 27 shall be allowed to keep the area originally retained by them thereunder; further, original homestead grantees or their direct compulsory heirs, who still own the original homestead as of 15 June 1988 (i.e., effectivity of R.A. No. 6657), are allowed to retain the same areas as long as they continue to cultivative the said homestead.
Relative to your third query (letter a), it may suffice to state that reclassification, which is the Local Government Unit's (LGU's) act of specifying how agricultural lands shall be utilized for non-agricultural uses, such as residential, industrial, commercial as embodied in the land use plan, is not synonymous with land use conversion, which is the actual change of agricultural land to non-agricultural uses as duly approved by DAR. Approval of applications for land use conversion remains the exclusive responsibility of DAR.
Anent letter b of your third query, agricultural lands classified or zonified for non-agricultural uses by LGU and approved by the HLURB before June 15, 1998 (effectivity of R.A. No. 6657), shall be governed by DAR Administrative Order No. 6, Series of 1994, as amended (guidelines on exemption from CARP coverage). Thereafter, the provisions of DAR Administrative Order No. 1, Series of 1999 shall apply as regards applications for conversion.
The basic provisions of law on land valuation and the determination of just compensation are embodied in Sections 16, 17 and 18 of R.A. No. 6657 in relation to DAR Administrative Order No. 5, Series of 1998. Furthermore, Executive Order No. 405 dated 14 June 1990, has vested in the Land Bank of the Philippines the primary responsibility to determine land valuation and compensation of all lands under R.A. No. 6657.
Thank you for communicating with us.
Very truly Yours,
(SGD.) FEDERICO A. POBLETE
Undersecretary for Legal Affairs, and Policy and Planning