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CARPER RA 9700

A PRIMER ON THE COMPREHENSIVE AGRARIAN REFORM PROGRAM EXTENSION WITH REFORMS


TABLE OF CONTENTS OBJECTIVES OF THE PRIMER DEFINITION OF TERMS HISTORICAL BACKGROUND ADDITIONAL INFORMATION RATIONALE PROVISIONS ARGUMENTS FOR CARPER ARGUMENTS AGAINST CARPER GUIDE QUESTIONS REFERENCES


OBJECTIVES OF THIS PRIMER

DISCUSS the rationale and provisions of CARPER. PRESENT recent developments regarding the law. PRESENT arguments for and against agrarian reform.

DEFINITION OF TERMS FARMER

A natural person whose primary livelihood is cultivation of land or the production of agricultural crops livestock and/or fisheries whether the land is owned by him/her, or by another person.

AGRICULTURAL LAND Land devoted to agricultural activity; not classified as mineral, forest, residential, commercial or industrial.

AGRARIAN REFORM

The redistribution of public and private agricultural lands to landless farmers, and the provision of support services designed to lift the economic status of the beneficiaries.

AGRARIAN REFORM BENEFICIARIES

ARBs CLOA

Includes landless agricultural lessees and share tenants; farmworkers; actual tillers or occupants of public lands; collectives or cooperatives and others.

CERTIFICATE OF LAND OWNERSHIP AWARD

A document issued by DAR to a beneficiary or group of beneficiaries as proof of their ownership of awarded land

CONVERSION

The act of changing the physical use of agricultural land into some other use

RA 6657

COMPREHENSIVE AGRARIAN REFORM PROGRAM

RA 9700

COMPREHENSIVE AGRARIAN REFORM PROGRAM EXTENSION WITH REFORMS

Amended and extended CARP; set to expire on JUNE 30, 2014.

DEPARTMENT OF AGRARIAN REFORM Responsible to lead the implementation of agrarian reform & sustainable development in the country through land tenure improvement, integrated development services and agrarian justice.

NOC

NOTICE OF COVERAGE

A document issued by DAR in order to initiate the compulsory acquisition and distribution of private agricultural lands.

STOCK DISTRIBUTION OPTION

A transfer scheme wherein ARBs become stock owners of the land

VOLUNTARY LAND TRANSFER

A transfer scheme wherein landowners enter into a voluntary arrangement for direct transfer of lands to ARBs


HISTORICAL BACKGROUND

+10 YEARS JUNE 10, 1988

FEBRUARY 23, 1998

AUGUST 7, 2009

Former President Cory Aquino enacts CARP; stated that implementation will last for 10 YEARS.

RA 8532 extends CARP’s funding for 10 MORE YEARS, from 1998 to 2008.

JULY 23, 2012

Former President Arroyo enacts CARPER which extended CARP for ANOTHER 5 YEARS.

President Noynoy Aquino declares in his SONA that BEFORE HE STEPS DOWN all lands covered by CARP would have been distributed.

RECENT UPDATES MARCH 3, 2014

APRIL 8, 2014

DAR stated that an extension of CARPER is not necessary because Section 30 of CARPER allows the distribution of private lands that are already covered by NOCs, even after the law’s expiration. What is needed, DAR stated, is a law that allows the issuance of NOCs even after the June 30 expiration (Ranada, 2014).

HB 4296 was filed; seeks to extend DAR’s issuance of NOCs until June 30, 2015.

ADDITIONAL INFORMATION THE AGRICULTURE SECTOR 10.59 MIL N LIO

30%

OF TOTAL EMPLOYMENT (JANUARY 2014)

POVERTY INCIDENCE (NSCB, 2009)

41.4%

FARMERS

36.7%

FISHERFOLK

11% OF GDP (Q1, 2014)

9.671 MILLION HECTARES OF AGRICULTURAL LAND

32% OF TOTAL LAND AREA 1987

≈4.45 M HECTARES DISTRIBUTED TO 2.6 M BENEFICIARIES

2012 JAN

2014

550,192 HECTARES TO BE DISTRIBUTED 273,473 HECTARES HAVE YET TO BE ISSUED NOCs


RATIONALE

To give the highest consideration to the welfare of the landless farmers to promote social justice

To promote industrialization and full employment based on agricultural development and agrarian reform

To uplift the lives and economic status of farmers and their children

To undertake the just distribution of all agricultural lands

CARPER PROVISIONS SCOPE

All private and public agricultural lands; exempting lands 5 hectares or less.

SUPPORT SERVICES

a. Irrigation facilities, infrastructure development and public works b. Credit support, financial assistance to small and medium scale industries c. Research, development and information dissemination d. Legal assistance

LAND DISTRIBUTION

ARBs can be awarded a maximum of 3 hectares. ARBs are to pay the Land Bank of the Philippines (LBP) amortization fees for 30 years, at 6% interest per annum. Section 27: Awarded lands shall not be sold, transferred or conveyed for 10 years. Except through hereditary succession, or to the government, LBP, or to other beneficiaries through the DAR. If the awarded land ceases to be economically sound for agricultural purposes after 5 years, ARBs can apply for its conversion.

TRANSFER SCHEMES

TIME FRAME (PHASING SCHEDULE) RETENTION LIMITS BUDGET

A. Land transfer scheme: Land Acquisition and Distribution a. Major Processes 1. Land survey 2. Identification of qualified ARBs 3. Processing of claim folders for landowners’ compensation 4. Land valuation and compensation 5. Registration of the awarded lands with the LRA 6. Issuance of CLOAs to ARBs. b. Modalities - Compulsory Acquisition and Voluntary Offer to Sell B. Non-land transfer scheme i. Leasehold operation ii. Production and profit sharing Phase 1: above 50 hectares Phase 2: 24 - 50 hectares by June 2012 Phase 3: (a) 10 - 24 hectares by July 2012 - June 30, 2013 (b) 5- 10 hectares by July 2013 - June 2014 A landowner can retain a maximum of 5 hectares. Each child of his/her may be awarded 3 hectares. Additional P150 B spaced in 5 years.


ARGUMENTS FOR AGRARIAN REFORM / CARPER SOCIAL JUSTICE

ARGUMENTS AGAINST AGRARIAN REFORM / CARPER 1

Agrarian reform results in a more equitable distribution of resources and power.

PRODUCTIVITY

CARPER has stretched on for 25 years; DAR is missing its target rate of land distribution because of red tape, legal complications, technical issues with landowners, tedious verification processes, missing or unreadable land titles, etc.

2

Land ownership can raise farm productivity by incentivizing farmers to pour more effort and investment in their fields and manage them sustainably (Hall, 1998). Empirical studies, however, yield mixed conclusions (see Stevenson, 2012 and Fabella, 2014).

CONSTITUTIONAL MANDATE

3

INSUFFICIENT BUDGET More funds may be required for land distribution and support services.

4

Historically, some presently developed countries (e.g. South Korea, Taiwan, Japan) implemented agrarian reform before rapidly industrializing.

SOCIAL ORDER

STATE CAPTURE Landowners have used their influence in politics and in the land reform bureaucracy to delay agrarian reform.

Agrarian reform is mandated by Article 2 Section 21, Article 12 Section 1, and Article 13 Sections 4-8 of the 1987 Constitution.

DEVELOPMENT MODEL

INEFFICIENCY

DEGREE OF REFORM Taiwan and Japan distributed 14% and 4.7% of their total land areas while the Philippines aims to distribute 16% of its land area. Taiwan, Japan and South Korea only largely distributed rice lands (Fabella, 2014).

5

Agrarian reform can defuse social unrest in the countryside.

ABUSE OF ATTESTATION REQUIREMENT

Landowners must first attest that a potential ARB actually works the land.

CARPER removed the Stock Distribution Option which allowed landlords to retain real control and management of the land (Bello, 2009).

6

CARPER removed the Voluntary Land Transfer scheme ”which has been abused by landlords scheming to sell marginal lands at high prices” (Bello, 2009).

7

CARPER banned the conversion of awarded land; automatic CARP coverage of converted lands if the conversion isn’t done after 5 years.

8

CARPER made CLOAs and Emancipation Patents (EPs) “indefeasible,” ensuring that beneficiaries’ claims cannot be voided, or undone.

9

CREDIT RESTRICTIONS Section 27 of CARPER prohibits the use of awarded land as collateral for loans, and thus weakens its ability to command credit. Some beneficiaries resort to the underground land market. (Fabella, 2014).

MISALLOCATION OF RESOURCES Section 27 of CARPER prohibits beneficiaries from selling, leasing or transferring awarded lands to potentially more productive individuals (Fabella, 2014).

SUB-OPTIMAL FARM SIZES The limits imposed by CARPER to the size of agricultural land owned by individuals results in failure to take advantage of economies of scale. This then results in capital flight (Fabella, 2014).

NON-PARCELIZATION OF COLLECTIVE CLOAs Beneficiaries are discouraged from investing in land under collective CLOAs because the property rights are unsettled (Fabella, 2014).

Support services, including legal assistance, help make ARBs’ lands more productive and enhance their economic welfare.

10

LAND OVERPRICING Landowners can sometimes manipulate the land valuation process. The market- based valuation is imperfect and beneficiaries may be unable to pay for the land as a result (Elvina, 2011).


1. What are the implications of agrarian reform for the country?

GUIDE QUESTIONS

2. In principle, are you for or against agrarian reform? 3. Are you for or against the provisions of CARPER? In general, what is your stand on CARPER? 4. Are you in favor of its implementation? If yes, how can it be improved? If not, do you think there are better agrarian reform programs than CARPER?

REFERENCES Alave, K. (2012) DAR needs to distribute 961,974 hectares in 2 years. Retrieved from: http://newsinfo.inquirer.net/213357/ dar-needs-to-distribute-961974-hectares-in-2-years Alave, K. (2012) Philippines is running out of farmers. Retrieved from: http://business.inquirer.net/18611/philippines -is-running-out-of-farmers Bello, W. (2009). CARPER: latest chapter in agri reform battle. Inquirer. Retrieved from http://opinion.inquirer.net/viewpoints/columns/view/20090622-211874/CARPER-Latest-Chapter-in- Agri-Reform-Battle Bureau of Agrarian Reform Information and Education Communications Development Division. (2007). Primer on land conversion. Retrieved from http://afrim.org.ph/IDLS/files/original/4e0171313f02a7b89fdbd08223a517d6.pdf Chan Robles Virtual Law Library (2014). Comprehensive Agrarian Reform Law of 1988. Retrieved from http://www.chanrobles.com/legal4agrarianlaw.htm#.U4BXGPnxoQg Department of Agrarian Reform. (n.d). DAR: Agrarian reform not expiring on 2014. Retrieved from: http://www.dar.gov.ph/index. php/media-resources/dar-news/281-dar-agrarian-reform-not-expiring- on-2014 Department of Agrarian Reform (2014). DAR says land acquisition and distribution to continue beyond June 2014. Retrieved from http://www.dar.gov.ph/national-news/488-dar-says-land-acquisition-and- distribution-to-continue-beyond-june-2014a Elvinia, J. (2011). Is land reform a failure in the Philippines? An assessment on CARP. In Kimura, H., Suharko, Javier, A.B., & Tangsupvattana, A. (eds.), Limits of good governance in developing countries. Gadjah Mada University Press. Fabella, R. (2014). Comprehensive Agrarian Reform Program (CARP): time to let go. University of the Philippines - School of Economics Discussion Paper No. 2014-02. Retrieved from http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/1455/924 Official Gazette (2009). Comprehensive Agrarian Reform Program with Extensions and Reforms Act 2009 Retrieved form: http://www.gov.ph/2009/ 08/07/republic-act-no-9700/ Gordoncillo, P. (2012) The economic effects of the comprhensive agrarian reform program in the Philippines. Retrieved from: http://www.issaas.org/journal/v18/01/journal-issaas-v18n1-09- gordoncillo.pdf Hall, R (1998). Design for equity: linking policy with objectives in South Africa’s land reform. Review of African Political Economy, 25:77, 451-462. Hutchison, J. (1997). Review of Agrarian reform in the Philippines: Democratic Transitions and Redistributive Reform, by Jeffrey M. Riedinger. The Journal of Asian Studies, 56:1, 269-270. Legaspi, A. (2012) PNoy, land reform advocates develop CARPER action plan. Retrieved from: http://www.gmanetwork.com/news/story/261908/news/nation/pnoy-land-reform-advocates-develop- carper-action-plan Lim, E. CARPER at 25: Beyond land distribution. Retrieved from: http://www.rappler.com/move- ph/ispeak/30999-carper-at25-beyond-land-distribution Mallari Jr. (2012) Quezon farmers support CARP extension. Retrieved from: http://newsinfo.inquirer.net/303114/quezon -farmers-support-carp-extension Manalo, C. (2013) Carper futile, useless. Retrieved from: http://www.tribune.net.ph/metro- section/item/10125-carper-futile -useless-%E2%80%94-solon Philippine Daily Inquirer (2009.) CARPer, right and wrong. Retrieved from: http://opinion.inquirer.net/inquireropinion/editorial/view/20090810-219 494/CARPer-rightRanada, P. (2014). DAR: CARPER extension not needed. Rappler. Retrieved from: http://www.rappler.com/nation/52325-agrarian-reform-extension-not-needed Stevenson, M. (2012). Land reform: lessons from/to global south. Retrieved from: http://colombiadesdeafuera.wordpress.com/2012/09/08/land-reform-lessons-fromto-global-southbackgrounder-to-land-reform-issues-in-the-philippines-by-mark-stevenson/ The LawPhil Project (2014). 1987 Constitution of the Republic of the Philippines. Retrieved from: http://www.lawphil.net/consti/cons1987.html Tupaz, V. (2012) PNoy promises to complete land distribution by 2014. Retrieved from: http://www.rappler.com/move-ph/ 7009-pnoy-bows-to-church,-farmers-on-agrarian-reform-challenge



Primer on CARPER