(NAR) VOL. 6 NO. 1 / JANUARY - MARCH 1995
The guiding principle on land use conversion is to preserve prime agricultural lands. On the other hand, conversion of agricultural lands, when coinciding with the objectives of the Comprehensive Agrarian Reform Law to promote social justice, industrialization, and the optimum use of land as a national resource for public welfare, shall be pursued in a speedy and judicious manner.
To operationalize these principles, and by virtue of Republic Act (R.A.) No. 3844, as amended, Presidential Decree (P.D.) No. 27, P.D. No. 946, Executive Order (E.O.) No. 129-A and R.A. No. 6657, the Department of Agrarian Reform (DAR) has issued several policy guidelines to regulate land use conversion. This Administrative Order consolidates and revises all existing implementing guidelines issued by the DAR, taking into consideration, other Presidential issuances and national policies related to land use conversion.
II
Legal Mandate
A. The Department of Agrarian Reform (DAR) is mandated to "approve or disapprove applications for conversion, restructuring or readjustment of agricultural lands into non-agricultural uses," pursuant to Section 4 (j) of Executive Order No. 129-A Series of 1987.
B. Section 5 (1) of E.O. No. 129-A, Series of 1987, vests in the DAR, exclusive authority to approve or disapprove applications for conversion of agricultural lands for residential, commercial, industrial, and other land uses.
C. Section 65 of R.A. No. 6657, otherwise known as the Comprehensive Agrarian Reform Law of 1988, likewise empowers the DAR to authorize under certain conditions, the reclassification or conversion of agricultural lands.
D. Section 4 of Memorandum Circular No. 54, Series of 1993 of the Office of the President, provides that "action on application for land use conversion on individual landholdings shall remain as the responsibility of the DAR, which shall utilize as its primary reference, documents on the comprehensive land use plans and accompanying ordinances passed upon and approved by the local government units concerned, together with the National Land Use Policy, pursuant to R.A. No. 6657 and E.O. No. 129-A."
III
Definition of Terms
A. Agricultural land refers to land devoted to agricultural activity and not classified as mineral, forest, residential, commercial or industrial land (section 3 (c), R.A. No. 6657).
B. Conversion is the act of changing the current use of a piece of agricultural land into some other use.
C. Reclassification of agricultural lands is the act of specifying how agriculture lands shall be utilized for non-agricultural uses such as residential, industrial, commercial, as embodied in the land use plan. It also includes the reversion of non-agricultural lands to do agricultural use.
D. Comprehensive Development Plan refers to a document embodying specific proposals for guiding, regulating growth and/or development. Its main components are the sectoral plans i.e., socio-economic, infrastructure, local administration, land use plan.
E. Comprehensive Land Use Plan refers to a plan which includes a land use map, the factors indicating the socially desired mix of land uses and a set of policies to guide future development.
F. Zoning is the delineation/division of a city/municipality into functional zones where only specific land uses are allowed. It directs and regulates the use of all lands in the community in accordance with an approved or adopted land use plan for the city/municipality. It prescribed setback provisions, minimum lot sizes, building heights and bulk.
G. Zoning Ordinance is a local legal measure which embodies regulations affecting land use.
H. Private Agricultural Lands are devoted to or suitable to agriculture, as defined in R.A. No. 6657 and owned by natural or juridical persons, or by the government in its proprietary capacity.
IV
Who May Apply for Conversion
A. Owners of private agricultural lands or other persons duly authorized by the landowner.
B. Farmer-beneficiaries of the Agrarian Reform Program after the lapse of five (5) years from award, reckoned from the date of registration of their landholdings and who have fully paid their obligations and are qualified under these rules, or persons duly authorized by them.
C. Government agencies, including government-owned or controlled corporations.
V
Coverage
These rules shall cover all private agricultural lands as defined herein regardless of tenurial arrangement and commodity produced. It shall also include agricultural lands reclassified by LGUs into non-agricultural uses, after June 15, 1988, pursuant to Memorandum Circular (M.C.) No. 54, Series of 1993 of the Office of the President and those proposed to be used for livestock, poultry and swine raising as provided in DAR Administrative Order No. 9, Series of 1993.
VI
Policies and Governing Principles
A. DAR's primary mandate is to acquire and distribute agricultural lands to as many qualified beneficiaries as possible.
B. DAR acknowledges the need of society for other uses of land, but likewise recognizes the need for prudence in the exercise of its authority to approve conversions and hereby adopts the following criteria as bases for the approval of applications for conversion:
a. when the land has ceased to be economically feasible and sound for agricultural purposes, as certified by the Regional Director of the Department of Agricultural (DA); or
b. when the locality has become highly urbanized and the land will have a greater economic value for residential, commercial or industrial purposes, as certified by the local government unit.
C. Conversion for selected Regional Agro-industrial Centers, Tourism Development. Area and sites for socialized housing shall be processed under Joint NEDA-DAR Memorandum Circular No. 1, Series of 1993 issued pursuant to Executive Order No. 12, Series of 1993 of the Office of the President.
D. Pursuant to Administrative Order No. 20 Series of 1992 (Interim Guidelines on Agricultural Land Use Conversion) and M.C. No. 54, Series of 1993 of the Office of the President, the following are non-negotiable for conversion:
E. No application for conversion shall be given due course if 1) the DAR has issued a Notice of Acquisition under the compulsory acquisition (CA) process; 2) Voluntary Offer to Sell (VOS) or an application for stock distribution covering the subject property has been received by DAR; or 3) there is already a perfected agreement between the landowner and the beneficiaries under Voluntary Land Transfer (VLT).
F. In all cases of petitions for conversion resulting the displacement of farmer-beneficiaries, such beneficiaries shall be entitled to a disturbance compensation, which should not be less than five (5) times the average of the annual gross value of the harvest on their actual landholdings during the last five (5) preceding calendar years. In addition, the DAR shall exert all efforts to see to it that free homelots and assured employment for displaced beneficiaries are provided by the applicant/developer.
G. To prevent circumvention of coverage under the CARP, conversion shall be granted only upon evidence that the project to be established therein is viable and beneficial to the community affected and that the land development phase of the area will be completed within one (1) year after the issuance of the Order of Conversion where the area is five (5) hectares or less. Should the area exceed five (5) hectares, an additional year shall be allowed for every five (5) hectares or a fraction thereof but in no case shall the completion of development extend beyond five (5) years from the issuance of the Order of Conversion.
VII
Documentary Requirements
A. Requirements for all applicants:
a. Profile of developer, including details of past or current development projects.
b. Financial Statements duly authenticated by a certified public accountant.
c. Articles of Incorporation or Partnership, if the applicant/developer is a corporation or partnership.
a. Certification from the DA Regional Director concerned, that the land has ceased to be economically feasible and sound for agricultural purposes.
Certification from the local government unit that the land or locality has become highly urbanized and will have greater economic value for commercial, industrial and residential purposes.
b. Municipal/city resolution favorably indorsing the application for conversion.
B. Additional requirements when the applicant is a beneficiary of the agrarian reform program:
C. Additional requirement for applications involving lands with areas of five (5) hectares or less:
The applicant shall submit a sworn statement stating that he/she has not previously filed a similar application over a portion of the same titled property.
D. Additional requirement if the land is planted to coconut trees:
Certification from the Philippine Coconut Authority (PCA) that the majority of the coconuts in the subject land had become senescent and economically unproductive or had been afflicted with a plant disease hazardous to healthy trees.
E. Documents required for application for lands to be converted into agro-processing plants:
The applicant shall comply with all the documentary requirements of this Administrative Order except those mentioned under Items No. VII-A-7 and 10 a, b and c.
F. Documents required if the applicant seeks to convert croplands into a poultry, livestock or swine project: all documents in A1-A9. However, in lieu of item A-10, only a certificate from the DA Regional Director to the effect that the proposed project is of greater economic value than the existing land use, will surffice.
VIII
Procedures
A. Applicant
B. The Regional Center for Land Use Planning Policy and Implementation (RCLUPPI) shall:
C. The DAR Regional Director shall:
D. The CLUPPI shall:
E. The Undersecretary for Policy and Planning shall:
F. The PARC Land Use Technical Committee (PLUTC) shall:
G. The Secretary shall:
IX
Releasing and Transmittal of Signed Order
Approved or disapproved order of application for Land Use Conversion, together with the LUCFs, shall be returned to the CLUPPI for control and monitoring purposes. In turn, the CLUPPI shall forward these documents to the Records Division for safe keeping of LUCF and distribution of copies of the order to the concerned parties.
X
Appeal from the Orders of the Regional Director
XI
Appeal from the Decision of the Undersecretary or Secretary
Appeal from the Decision of the Undersecretary shall be made to the Secretary, and from the Secretary to the Office of the President or the Court of Appeals as the case may be. The mode of appeal/motion for reconsideration, and the appeal fee, from Undersecretary to the Office of the Secretary shall be the same as that of the Regional Director to the Office of the Secretary.
XII
Posting of DAR Conversion Order
Immediately upon approval of a conversion order, the developer/applicant shall post in a conspicuous place of the project area, a public notice stating the following: "The conversion of this landholding has been approved by the Secretary of the Department of Agrarian Reform for Undersecretary for Policy and Planning or Regional Director depending on the authority provided in this A.O.) under Conversion Order No. ____, dated __________". It will include the name of the project and area, name of the developer/landowner, and date when the development permit was granted. Failure to post such notice shall be a ground for the suspension of the development of the area and for possible cancellation of the conversion order, pursuant to Section XIV hereof.
XIII
Monitoring
Compliance with the terms and conditions of this Order shall be monitored as follows:
XIV
Protest or Opposition to Conversion Application
The Regional CLUPPI shall evaluate written protests filed by any person who may be displaced or affected by the proposed land use conversion. Findings and recommendations on protests shall be forwarded to the Secretary, through the CLUPPI for resolution, except protests involving five (5) hectares or less and within the non-agricultural zone. Such protests shall be forwarded to the Regional Director for resolution within fifteen (15) days, reckoned from receipt of the protest, subject to appeal to the DAR Secretary through the Assistant Secretary of Legal Affairs Office.
XV
Cancellation or Withdrawal of Approval
The DAR may cancel or withdraw authorization for land use conversion, based on the following grounds:
a. Misrepresentation or concealment of material facts in the application;
b. Failure to implement and complete the land development of the area within the specified time; and
c. Any other violations of the rules and regulations which are material to the grant of the conversion order.
XVI
Disapproved Applications or Cancelled Conversion Orders
Lands covered by a petition for conversion which had been disapproved or those covered by a conversion order which had been cancelled or withdrawn under this administrative order, shall be placed under CARP compulsory coverage, in accordance with the schedule of implementation prescribed in Section 7 of R.A. No. 8657 and be distributed to all qualified beneficiaries.
XVII
Transitory Provisions
The provisions of this Administrative Order shall be applicable to all applications filed on or after its effectivity. All other applications filed previous to this Administrative Order shall be governed by the pertinent administrative order or issuances in force, at the time of the filing of the applications, and shall be processed accordingly.
However, applications covering lands five (5) hectares and below situated within non-agricultural zones which are pending in the Region and either DAR field offices, shall be approved or disapproved by the Regional Director concerned, upon the effectivity of this Administrative Order. Applications covering 5 hectares and below pending at the DAR Central Office shall be processed in accordance with AO No. 1, Series of 1990.
XVIII
Penal Provisions
Pursuant to Section 73 and 74 of R.A. No. 6657, any person who knowingly or willfully converts any agricultural land without the approval of the DAR, shall be subject to criminal prosecution as provided for under the Joint DAR-DOJ Administrative Order No. 4, Series of 1993. Applications covering such areas, shall be summarily disapproved and the land shall be placed under CARP and distributed to qualified FBs.
XIX
Repealing Clause
This Administrative Order repeals Administrative Order (A.O.) Nos. 8 and 15, Series of 1990 and 1988, General Order No. 1, Series of 1989, A.O. Nos. 15, 16, and 18, Series of 1989, A.O. No. 7, Series of 1992 and amended A.O. Nos. 1 and 2, Series of 1990. All other issuances not consistent with this order are likewise repealed.
XX
Effectivity
This Administrative Order shall take effect ten (10) days after its publication in two (2) national newspapers of general circulation.
Adopted: 24 Oct. 1994
(SGD.) ERNESTO D. GARILAO
Secretary