December 8, 1998

DAR OPINION NO. 118-98

ATANACIA M . GUEVARRA

OIC-Director, PARC Secretariat

Department of Agrarian Reform

Diliman, Quezon City

Dear Director Guevarra:

This refers to your Memorandum dated 09 September 1998 (relative to the letter of Mr. Cecilio A. Salem II dated 23 July 1998) addressed to Assistant Secretary Wilfredo M. Penaflor of PPLAO seeking opinion on whether or not the proposed donation of a One Thousand Two Hundred (1,200) square meter parcel of land located within the Resettlement Area in Pangantucan, Bukidnon in favor of the Samahang Magsasaka Multi-Purpose Cooperative of Barandias is legal and valid.

As culled from your Memorandum and the aforesaid letter dated 23 July 1998, the property subject of the proposed donation is located within the Resettlement Area and was allocated to a certain Mrs. Marilyn Paderan; that the allocatee decided to donate said property in favor of the abovementioned farmers cooperative to give way for the construction of a post harvest facility which is the solar dryer of the farmer cooperative; and that Legal Officer I Cecilio A. Salem II of MARO, Pangantucan, Bukidnon believes that said farmers cooperative falls within the phrase "other qualified beneficiaries" within the context of Section 27, thus, the same may be treated as an exemption to the general rule regarding the 10-year prohibition of any transfer, conveyance or alienation of CARP awarded lands.

Specifically, Section 22 of R.A. No. 6657 enumerates in the following order of priority who can be the distributees of agricultural lands, to wit:

a.         agricultural lessees and share tenants;

b.         regular farmworkers;

c.         seasonal farmworkers;

d.         other farmworkers;

e.         actual tillers or occupants of public lands;

f.          collective or cooperatives of the above beneficiaries; and

g.         others directly working on the land.

Evidently, cooperatives of farmer-beneficiaries are one of those expressly mentioned, nonetheless, it is submitted that the same is not without limitation so as to extend the enjoyment of said privilege even to non-farmer beneficiaries.

Therefore, only qualified agrarian reform beneficiaries as determined by DAR pursuant to Section 22 of R.A. No. 6657 are eligible to be distributees of agricultural lands and this privilege should not by implication be extended to non-farmer beneficiaries, otherwise, this might open the door towards the circumvention of the provisions of R.A. No. 6657. Although Section 27 of R.A. No. 6657 expressly declares in clear and categorical terms that lands acquired by beneficiaries under R.A. No. 6657 may be sold, transferred or conveyed to qualified beneficiaries even within the 10-year prohibitory period from the award as one of the exceptions, the restrictive application solely refers to qualified farmer-beneficiaries pursuant to the legally mandated order of their priority and on the conditions that the land sold, transferred or conveyed should remain agricultural in nature and its productivity maintained and may only be converted to non-agricultural use after the lapse of the period provided under Section 65 of R.A. No. 6657. Otherwise stated, the transferability of awarded lands as enunciated under Section 27 of R.A. No. 6657 must be in conformity with Section 22 of said law both as to the order of priority and qualification of farmer-beneficiaries coupled with the inherent requirements on the maintenance of the agricultural nature of the land and its productivity. The legislative intent of Section 27 is clear and unambiguous, hence, we should not stretch the beneficial provision thereof so as to include even non-farmer beneficiaries of cooperatives.

Moreover, pursuant to Section 65 of R.A. No. 6657, lands awarded to farmer-beneficiaries can be the subject of conversion only after five (5) years from award when the land ceases to be economically feasible and sound for agricultural purposes, or the locality has become urbanized and the land will have a greater economic value for residential, commercial or industrial purposes. In such case, the DAR, upon application of the beneficiary or the landowner, with due notice to the affected parties, and subject to existing laws, may authorize the reclassification or conversion of the land and its disposition: provided, that the beneficiary shall have fully paid his obligation. Obviously, the construction of a post harvest facility which is the solar dryer of the farmer cooperative will in effect change the current use of the land from agricultural to non-agricultural which therefore necessitates an application for conversion pursuant to DAR Administrative Order No. 07, Series of 1997.

Finally, it bears stressing here that should CARP awarded lands be conveyed or transferred whether within or after the 10-year prohibitory period provided under Section 27 of R.A. No. 6657, the agricultural productivity of said lands shall still have to be maintained pursuant to DAR Administrative Order No. 8, Series of 1995 (Item 11.2 and 3).

Please be guided accordingly and 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:

Mr. Cecilio A. Salem II

Legal Officer I

MARO, Pangantucan, Bukidnon

The Provincial Agrarian Reform Officer

DAR — Provincial Office

Casisang, Malaybalay Bukidnon