October 15, 1996

DAR OPINION NO. 92-96

Dr. Haniel R. Castro

Christian Clinic and Hospital

Surigao City

Dear Dr. Castro:

This has reference to your letter seeking reconsideration of the letter-reply of then Asst. Secretary for Legal Affairs Office Hector D. Soliman, dated 24 October 1995, that your tenanted riceland be valued under R.A. 6657, instead of P.D. 27.

We regret to inform you that your request for reconsideration cannot be granted as the coverage of your landholding falls squarely under P.D. 27 and therefore, the tenant-farmers became owners of the land they tilled as of the effectivity date of P.D. 27, on 21 October 1972. Consequently, the valuation of rice and corn lands covered by the decree is governed by Executive Order No. 228, Section 2 which provides that it "shall be based on the average gross production determined by the Barangay Committee on Land Production in accordance with Department Memorandum Circular No. 26, Series of 1973 and related issuances and regulation of the Department of Agrarian Reform. The average gross production per hectare shall be multiplied by two and a half (2.5), the product of which shall be multiplied by Thirty Five Pesos (P35.00), the government support price for one cavan of 50 kilos of palay on October 21, 1972, or Thirty One Pesos (P31.00), the government support price for one cavan of 50 kilos of corn on October 21, 1972, and the amount arrived at shall be the value of the rice and corn land, as the case may be, for the purpose of determining its cost to the farmer and compensation to the landowner."

Moreover, to apply the valuation prescribed under R.A. 6657 to landholdings already covered under P.D. 27 would violate the time honored-principle that "laws shall have no retroactive effect, unless the contrary is provided".

In view thereof, this office considers the matter closed.

Very truly yours,

(SGD.) LORENZO R. REYES

OIC-Undersecretary
LAFMA

Copy furnished:

The Regional Director

DAR Region XIII, CARAGA

Butuan City