June 5, 1997

DAR OPINION NO. 63-97

Honorable Salvador H. Escudero III

Secretary of Agriculture

Elliptical Road, Diliman

Quezon City

Dear Secretary Escudero:

This has reference to the letter of Mr. Roger K. Davis, President of the Philippine Orchard and Fruit Farmers Association, Inc., regarding the participation of the farmers in the Department of Agriculture's "Gintong Ani" Program the success of which, according to him, will be attained only if DAR will exempt those joining the program from CARP coverage.

Mr. Davis observed that CARP works against DA's "Gintong Ani" Program. He pointed that: "under R.A. 6657, the law states that if the land is developed, it is subject to land reform but if it is not developed, it is not subject to land reform." Furthermore, he declared that farmers might not be encouraged to participate in this "Gintong Ani" Program since if they develop all their lands for commercial crop production, they could be subject under Section 11 of R.A. No. 6657. He strongly recommends that those joining the Program be given "Gintong Ani" Certificates of Recognition, and a Memorandum of Agreement with the DAR should be executed to the effect that farmer participants in the "Gintong Ani" Program of the DA will not be subjected to CARP coverage. Mr. Davis likewise recommends for the establishment of a "protective screen" against DAR since "DAR chops up small farms and eliminates their economy of scale and thus destroys the production of vegetables and fruits".

Under R.A. No. 6657, the Comprehensive Agrarian Reform Program (CARP) covers, regardless of tenurial arrangement and commodity produced, all public and private lands devoted to or suitable for agriculture and not classified as mineral, forest, residential, commercial or industrial land. Specifically, the following lands are covered by CARP:

a)         all alienable and disposable lands of the public domain devoted to or suitable for agriculture;

b)        all lands of the public domain in excess of the specific limits as determined by Congress;

c)         all other lands owned by the government devoted to or suitable for agriculture; and

d)        all private lands devoted to or suitable for agriculture regardless of the agricultural products raised or that can be raised thereon (Section 4, R.A. No. 6657).

On the other hand, under the same law (Comprehensive Agrarian Reform Law), the following lands are not covered by CARP:

a)         those which are not suitable for agriculture, and those which are classified as mineral, forest, residential, commercial or industrial land;

b)        those which have been classified and approved as non-agricultural prior to June 15, 1988 as ruled under Department of Justice Opinion No. 44, Series of 1990;

c)         those which are exempt pursuant to Section 10, R.A. No. 6657, as amended by R.A. No. 7881;

d)        those which are devoted to poultry, swine, or livestock raising as of June 15, 1988 pursuant to the Supreme Court ruling on Luz Farms vs. The Hon. Secretary of Agrarian Reform (G.R. No. 86339, 4 December 1990); and

e)         those which are retained by the landowner (not covered insofar as land acquisition and distribution but covered with respect to other provisions, particularly leasehold).

Furthermore, under Section 11 of R.A. No. 6657, as amended by R.A. No. 7881, the following is provided, quote: "Commercial farms which are private agricultural lands devoted to saltbeds, fruit farms, orchards, vegetable and cut-flower farms, and cacao, coffee and rubber plantations, shall be subject to immediate compulsory acquisition and distribution after ten (10) years from the effectivity of this Act. In the case of new farms, the ten-year period shall begin from the first year of commercial production and operation, as determined by the DAR."

Lastly, Section 29 of R.A. No. 6657 provides for the following: "In general, lands shall be distributed directly to the individual worker-beneficiaries. In case it is not economically feasible and sound to divide the land, then it shall be owned collectively by the worker-beneficiaries who shall form a workers' cooperative or association which will deal with the corporation or business association."

From the foregoing, it is clear that the law categorically provides and mentions those lands to be covered by CARP and those exempt or excluded from coverage. The exemption of the "Gintong Ani" participants from CARP coverage is however not one of those contemplated or provided for by law. Likewise, with regard to fruit farms and orchards, Section 11 of R.A. No. 6657, as amended provides that the acquisition and distribution of the same shall be effected after the ten-year period reckoned from 15 June 1988 or from the first year of commercial production or operation, as the case may be. Finally, with respect to the argument that the DAR "chops up" small farms thereby posing a threat to the so-called "economy of scale", the same is belied by the aforecited provision of R.A. No. 6657, Section 29 thereof.

In view of all the above, it is accordingly submitted that the exemption of "Gintong Ani" participants from CARP coverage and the concomitant forging of a MOA between DA and DAR will not prosper since the latter is legally constrained by the aforementioned provisions of law and their implementing guidelines. It bears stressing here that it is not within the powers of the DAR to amend or modify the law it is called upon and duty-bound to carry out.

Thank you for communicating with us.

Very truly yours,

(SGD.) ERNESTO D. GARILAO
Secretary

Copy furnished:

Mr. Roger K. Davis

President

Philippine Orchard and Fruit Farmers Association, Inc.

3894 Quinqua St., Makati City