October 26, 1998

DAR OPINION NO. 102-98

MR. LEONARDO D. CARREON

DAR Municipal Office

Guagua, Pampanga

Dear Mr. Carreon:

This has reference to your letter dated 03 September 1998 requesting for a legal opinion regarding the numerous verbal inquiries you received both from landowners and tenant-tillers/lessees as well on whether or not the conversion of riceland, sugarland and horticulture land into fishponds requires DAR conversion clearance.

Please be informed that R.A. 7881 provides, among others, that:

"Section 2.     Section 10 of Republic Act No. 6657 is hereby amended to read as follows:

SECTION 10.          Exemptions and Exclusions.

b)      Private lands actually, directly and exclusively used for prawn farms and fishponds shall be exempt from the coverage of this Act: Provided, that said prawn farms and fishponds have not been distributed and Certificate of Land Ownership Award (CLOA) issued to agrarian reform beneficiaries under the Comprehensive Agrarian Reform Program."

Pursuant to this provision, DAR issued Administrative Order No. 3, Series of 1995 entitled "Rules and Regulations Governing the Exemption/Exclusion of Fishponds and Prawn Farms from the coverage of the Comprehensive Agrarian Reform Law (R.A. 6657), as amended. Item No. 111 of this guidelines specifically provides that:

"These guidelines shall cover all private lands owned by individuals or entities actually, directly and exclusively used for fishponds or prawn farms as of March 12, 1995."

Put otherwise, for fishponds and prawn farms to be exempt from the coverage of CARP, they must be actually, directly and exclusively used for such purpose as of 12 March 1995, the date when R.A. 7881 took effect. However, compliance with this requirement does not automatically exempt fishponds and prawn farms from CARP coverage. The owners are still required to apply for Exemption or Exclusion from the coverage of CARP with the DAR and comply with all the requirements set forth in the cited Administrative Order.

On the other hand, agricultural lands which are not yet actually, directly and exclusively used as fishponds or prawn farms as of March 12, 1995, prior DAR Conversion Clearance is necessary. The owners concerned must first apply with the appropriate DAR Office and comply with the requirements for conversion pursuant to Administrative Order No. 03, Series of 1995.

We hope to have clarified you on this matter.

Very truly yours,

(SGD.) DANILO T. LARA

Undersecretary for Legal Affairs, and Policy and Planning