December 24, 1998

DAR OPINION NO. 126-98

HON . CONRADO A. NAVARRO

Undersecretary

Field Operations Group and Support Services

This Department

Dear Undersecretary Navarro:

This has reference to your Memorandum dated 19 October 1998 wherein you want to be clarified specifically on item No. 3 thereof which states:

"No. 3.          Would it be possible to include those other fishponds and prawnfarms (not deferred) acquired prior to Republic Act No. 7881 with pending valuation, in this proposed Administrative Order?"

Your memorandum is the aftermath of the letter of Director Dominador B. Andres, DAR-Regional Office VI, wherein they are submitting before us a case from Capiz wherein a compulsorily acquired titled land with fishpond as its land use was returned by Land Bank of the Philippines since they have no basis for valuation on fishponds; that said property is owned by the Bank of the Philippine Island (BPI) and was held pending at the Provincial Office; and that they are soliciting our assistance to formulate a policy on land valuation for fishponds in order that the claim folder of BPI be valued and distributed to qualified farmer-beneficiaries.

Republic Act No. 6657 which took effect on 15 June 1988, brought forth under its Coverage all public and private lands, regardless of tenurial arrangement and commodity produced, as provided for in Proclamation No. 131 and Executive Order No. 229, including other lands of the public domain suitable for agriculture. Under the broad coverage of said law fishponds and prawnfarms were deemed included therein. With the enactment of Republic Act No. 7881, which took effect on 12 March 1995, fishponds and prawnfarms were exempt/excluded from the coverage of the Comprehensive Agrarian Reform Law. However, for it to be exempt or excluded from the coverage of CARP, owners thereof should still have to file an Application for Land Exemption/Exclusion with the DAR Provincial Office where the property is situated, and shall state and prove that their lands have been actually, directly and exclusively used for fishpond and prawnfarm purposes even prior to the effectivity date of R.A. No. 7881 on 12 March 1995. The consequential effect of the latter law is that guidelines for valuation of lands used as fishponds and prawnfarms were deemed no longer necessary since said lands are already exempt or excluded from the coverage of CARP.

Thus, as regards fishponds and prawnfarms covered by CARP prior to the effectivity of R.A. No. 7881, while it is admitted that we have no specific guidelines to address the valuation thereof, we submit that Administrative Order No. 05, Series of 1998 entitled, "Revised Rules and Regulations Governing the Valuation of Lands Voluntarily Offered or Compulsorily Acquired Pursuant to Republic Act No. 6657", which is hereto attached for ready reference, could likewise be held to apply in the instant case to address the valuation problems being encountered by our field personnel concerned.

We hope to have clarified you on the matter.

Very truly yours,

(SGD.) DANILO T. LARA

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Director Dominador B. Andres

DAR — Regional Office

St. Clement Compound

La Paz, Iloilo City

PARO Ramon M. Benjamin, Jr.

DAR — Provincial Office

3rd Floor Amado Lim Bldg.

Roxas Avenue, Roxas City

Mr. Jaime B. Rasco, Jr.

Assistant Manager

BPI Chinabank Business Center

BPI Iznart Branch

Iznart St., 5000

Iloilo City