October 12, 1998
DAR OPINION NO. 99-98
RODERICK B. BUSTOS
JAKA GROUP, Legal Department
Ground Floor, JAKA Center
2111 Chino Roces Avenue
Makati City
Dear Atty. Bustos:
This refers to your letter dated 16 September 1998 requesting for opinion on the queries posed therein.
As stated, BLUE CIRCLE FARMS CORPORATION, your integrated poultry company, is into breeding, hatchery, laying, grower out and dressing business. Your queries are:
1. Whether or not a hatchery or breeding farm for poultry is outside the ambit of agricultural purposes; and
2. Whether or not these lands should be applied for conversion.
Anent your first query, the Supreme Court has made a pronouncement in the landmark case of Luz Farms vs. The Honorable Secretary of Agrarian Reform (G.R. No. 86889, 4 December 1990) that those lands which are devoted to poultry, swine and livestock farms are not included within the scope of the agrarian reform program. To qualify for exclusion from CARP coverage, however, the following requirements must be met upon proper application for exemption/exclusion pursuant to the provisions of DAR Administrative Order No. 9, Series of 1993:
1. The land or portions thereof must have been exclusively, directly and actually used for livestock, poultry and swine raising as of 15 June 1988 (i.e., effectivity of the Comprehensive Agrarian Reform Law); and
2. The farm devoted to the above purposes must satisfy the animal/land ratio, as well as animal/infrastructure ratio, as provided for in Section III-B of Administrative Order No. 09, Series of 1993 entitled, "Rules and Regulations Governing the Exclusion of Agricultural Lands Used for Livestock, Poultry and Swine Raising from the Coverage of CARP".
Relative to the second query, if the requirements stated above have been met as determined by DAR upon an application for exemption/exclusion, the land is exempt, therefore, there is no longer any need to apply for conversion. In other words, if there is already an Exemption Order, application for conversion shall no longer be required. Instead, the applicant may proceed to the Local Government Unit concerned for the issuance of a Development Clearance. Environmental Compliance Certificate (ECC) from the DENR must likewise be secured.
On the other hand, if the land had not been devoted to poultry raising prior to 15 June 1988 (i.e., effectivity of R.A. No. 6657) but, nevertheless, the landowner wishes to convert his land for said purpose, the owner must perforce apply for conversion pursuant to the provisions of Administrative Order No. 7, Series of 1997, otherwise, the conversion of the crop land without the benefit of DAR conversion clearance or approval shall be construed as an intent to avoid the application of CARP and will thus be considered as invalid and illegal. The same rule applies even if the land is purportedly devoted to poultry raising as of 15 June 1988 and subsequently converted unilaterally by the landowner to residential, commercial or industrial since the presumption is that the land is agricultural. To forego with the requirement of DAR Conversion Clearance on or after said date might open the floodgates towards widespread circumvention of the provisions of R.A. No. 6657 and is violative of the legal mandate of DAR to approve or disapprove applications for conversion from the aforesaid date pursuant to Section 4 (j) and Section 5 (1) of Executive Order No. 129-A, Series of 1987, and DOJ Opinion No. 44, Series of 1990.
We hope to have clarified the matter with you.
Very truly yours,
(SGD.) DANILO T. LARA
Undersecretary for Legal Affairs, and Policy and Planning