May 7, 1997

DAR OPINION NO. 51-97

Rainier A. Leopando

Dear Mr. Leopando:

This refers to your letter which posed the following queries, to wit:

1.         What is the legal computation of shares given to tenants? and

2.         How much should you give your tenant so you can take back the one (1) hectare property?

Anent your first query, we wish to inform you that under Republic Act No. 6389, amending Republic Act No. 3844, otherwise known as the Agricultural Land Reform Code, it provides for the automatic conversion of Agricultural Share Tenancy to Agricultural Leasehold, share tenancy being contrary to public policy. Pursuant to the abovementioned laws, along with the provisions of Sections 12 and 76 of R.A. No. 6657, all tenanted agricultural lands are now subject to leasehold. Thus, all sharecrop tenants are deemed by operation of law agricultural lessees whether or not a leasehold agreement has been executed.

The lease rental to be paid by all the agricultural lessees shall not be more than the equivalent of twenty five percent (25%) of the average normal harvest during the three (3) agricultural years immediately preceding the following dates:

*          September 10, 1971 - the date of effectivity of R.A. No. 6389 for tenanted rice and corn lands;

*          Date of leasehold agreement by the parties concerned or June 15, 1988, whichever is sooner, for all other agricultural lands after deducting the amount used for seeds and the cost of harvesting, threshing, loading, hauling and processing whichever is applicable.

It is clear from the foregoing that your tenant is no longer allowed under the law to share with you the produce of the land but instead to pay you lease rentals for he is considered now as an agricultural lessee and you as the lessor/owner of the subject property.

With regard to your second query, even assuming that the one-hectare subject property is within your retained area, as an agricultural lessor or owner thereof you are nonetheless under the law obliged to maintain the agricultural lessee in peaceful possession and cultivation of his landholding. This is so since once an agricultural leasehold relation is established, it shall confer upon the agricultural lessee the right to continue working on the landholding and shall be entitled to security of tenure and cannot be ejected therefrom unless authorized by the court.

We hope to have clarified the matters with you.

Very truly yours,

(SGD.) ARTEMIO A. ADASA, JR.

Undersecretary for Legal Affairs, and Policy and Planning