October 9, 1998

DAR OPINION NO. 98-98

ATTY . HENRY B. SO

2nd Floor, A & H Building

1840 Evangelista St., Makati City

Dear Atty. So:

This refers to your letter dated 23 August 1998 seeking opinion on whether or not lands devoted to the raising of livestock, poultry and swine are covered under Republic Act No. 6657 (Comprehensive Agrarian Reform Law).

As gleaned from your letter, the subject property has an aggregate are of 500.0180 has., more or less, situated at Marangas, Bataraza, Palawan and registered in the name of JESSMAG Shipping Company, Inc. under TCT No. 5873; that said property has been utilized as a pasture land since 1984 and, presently, there are 683 heads of cattle grazing inside the perimeter fence, 42 carabaos, 38 horses and more than a hundred goats; that despite the classification of the subject landholding, a Notice of Coverage was sent to your client by Municipal Agrarian Reform Officer (MARO) Fortunata P. Siose, subjecting the property under compulsory acquisition scheme; and that it is your firm belief that said landholding is exempt from CARP coverage pursuant to Supreme Court ruling in the case of Luz Farms vs. Hon. Secretary of the Department Agrarian Reform (G.R. No. 86889, 04 December 1990).

Please be informed that exemption of landholdings from CARP coverage is not automatic which can be granted outright on the bare allegations that it is devoted to the raising of livestock, poultry and swine before the effectivity of CARL on 15 June 1988. Apart from said allegations, there must be proof to be presented to substantiate the claims that it is indeed exempt from coverage.

Specifically, DAR Administrative Order No. 09, Series of 1993 (copy attached) expressly declares that landowners whose private agricultural lands or portions thereof are exclusively, directly and actually used for livestock, poultry and swine raising as of 15 June 1988 should file an Application for Exclusion together with the documentary requirements with the Provincial Agrarian Reform Officer (PARO) of the place where the property is situated. Upon receipt of the application, the PARO with the assistance of the Barangay Agrarian Reform Council (BARC), the MARO, the Municipal Livestock Inspector, and a livestock/poultry and swine specialist of the Department of Agriculture (DA), shall conduct an investigation of the land to determine, among others, the ownership, legal status, type and area of the land sought to be excluded, and to ascertain whether the property has been devoted to livestock, poultry and swine as of 15 June 1988 (i.e., effectivity of R.A. No. 6657 — CARL). Should a landowner change or convert his agricultural land to livestock, poultry and swine raising after 15 June 1988, with the intent to avoid the application of Republic Act No. 6657 to his landholdings, the same shall be considered invalid and illegal and shall not affect the coverage of his landholding under CARP.

Thus, if the subject landholding is indeed devoted to livestock, poultry and swine raising prior to the effectivity of the CARL and all the documentary requirements are complied with, the Regional Director (RD) shall issue an Order of Exclusion and the Notice of Coverage shall perforce be lifted, otherwise, it shall issue an Order of Denial and shall subject said property to CARP coverage.

We hope to have clarified the matter with you.

Very truly yours,

(SGD.) DANILO T. LARA

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

MARO Fortunata P. Siose

Municipal Agrarian Reform Office

Bataraza, Palawan

The Provincial Agrarian Reform Officer

DAR — Provincial Office

Puerto Princesa City

Palawan

Mario F. Magsaysay

President

JESSMAG Agricultural Dev't. Corp.

Rm. 201, MJG Bldg., No. 738 Aurora Blvd.

Cor. Balete Drive, Quezon City