Rules and Regulations on Valuation and Landowners Compensation Involving Tenanted Rice and Corn Lands Under Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228
DAR Administrative Order No. 001-10 outlines the rules for valuing and compensating landowners of tenanted rice and corn lands under Presidential Decree No. 27 and Executive Order No. 228. The order establishes that claims not yet approved for payment will be valued according to the provisions of Republic Act No. 6657, as amended, and specifies the criteria for land valuation, including the use of Capitalized Net Income and Market Value. Compensation to landowners is structured as 10% cash and the remainder in Agricultural Reform (AR) bonds, with certain conditions for release. The amortization period for tenant-farmers is set at 15 years for PD 27 lands and up to 20 years for EO 228 lands, with provisions for interest rates and rebates. The order took effect on July 1, 2009, and aims to resolve ongoing disputes regarding land valuation and compensation.
Quick Answers
- What is Rules and Regulations on Valuation and Landowners Compensation Involving Tenanted Rice and Corn Lands Under Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228 about?
- DAR Administrative Order No. 001-10 outlines the rules for valuing and compensating landowners of tenanted rice and corn lands under Presidential Decree No. 27 and Executive Order No. 228. The order establishes that claims not yet approved for payment will be valued according to the provisions of Republic Act No. 6657, as amended, and specifies the criteria for land valuation, including the use of Capitalized Net Income and Market Value. Compensation to landowners is structured as 10% cash and the remainder in Agricultural Reform (AR) bonds, with certain conditions for release. The amortization period for tenant-farmers is set at 15 years for PD 27 lands and up to 20 years for EO 228 lands, with provisions for interest rates and rebates. The order took effect on July 1, 2009, and aims to resolve ongoing disputes regarding land valuation and compensation.
- What type of law is DAR Administrative Order No. 001-10?
- Rules and Regulations on Valuation and Landowners Compensation Involving Tenanted Rice and Corn Lands Under Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228 (DAR Administrative Order No. 001-10) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.
- When was Rules and Regulations on Valuation and Landowners Compensation Involving Tenanted Rice and Corn Lands Under Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228 enacted?
- Rules and Regulations on Valuation and Landowners Compensation Involving Tenanted Rice and Corn Lands Under Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228 (DAR Administrative Order No. 001-10) was enacted on Feb 12, 2010.
- What is the citation for Rules and Regulations on Valuation and Landowners Compensation Involving Tenanted Rice and Corn Lands Under Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228?
- Rules and Regulations on Valuation and Landowners Compensation Involving Tenanted Rice and Corn Lands Under Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228, DAR Administrative Order No. 001-10, Feb 12, 2010 (Philippines)
Law Information
- Reference Number
- DAR Administrative Order No. 001-10
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Department of Agrarian Reform
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
February 12, 2010
DAR ADMINISTRATIVE ORDER NO. 001-10
| SUBJECT | : | Rules and Regulations on Valuation and Landowners Compensation Involving Tenanted Rice and Corn Lands Under Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228 |
I. Prefatory Statement
Section 5 of Republic Act (R.A.) No. 9700 which amends Section 7 of R.A. 6657 provides "that all previously acquired lands wherein valuation is subject to challenge by landowners shall be completed and finally resolved pursuant to Section 17 of R.A. 6657, as amended." The word "challenge" shall refer to the expression of non-acceptance of valuation by the landowner through filing of just compensation case in Court, written protest or similar instruments or impliedly thru non-compliance to submit pre-payment/documentary requirements despite receipt of notice or demand.
DAR Administrative Order No. 2, Series of 2009, which is the implementing guidelines of R.A. 9700, provides that "in like manner, claims over tenanted rice and corn lands under P.D. 27 and E.O. 228 whether submitted or not to the Land Bank of the Philippines (LBP) and not yet approved for payment shall be valued under R.A. 6657, as amended."
Landholdings covered by P.D. 27 and falling under Phase 1 of R.A. No. 9700 shall be valued under R.A. No. 9700.
II. Coverage
A. Lands already distributed by the DAR to the farmer-beneficiaries where documentation and/or valuation are/is not yet complete (Distributed But Not Yet Documented [DNYD] claims).
B. PD 27/EO 228 claims with the Land Bank of the Philippines where:
1. The DAR valuation is rejected by the landowner OR
2. The DAR valuation is undergoing summary proceeding with the DARAB or just compensation case with the Court OR
3. The landowner accepts the original valuation under protest or without prejudice to the determination of just compensation OR CIDTcH
4. The landowner refuses or fails to submit or comply with the pre-payment/documentary requirements under PD 27/EO 228 formula despite receipt of notice of demand.
C. Rice and Corn lands under PD 27 falling under Phase 1 of RA 9700.
III. Statement of Policies
1. All PD 27 and EO 228 claims not yet valued by DAR shall be continuously valued by DAR pursuant to PD 27/EO 228 formula.
2. The basis of the amortization by the farmer-beneficiary shall be the DAR valuation determined pursuant to PD 27/EO 228 formula.
3. Claims covered under PD 27/EO 228 and revalued under RA 6657 or RA 9700 shall no longer be entitled to the coverage of DAR Administrative Order No. 13, Series of 1994, DAR Administrative No. 02, Series of 2004 and DAR Administrative Order No. 06, Series of 2008.
4. The Final Survey documents shall be submitted by DAR to LBP prior to any revaluation.
IV. Land Valuation
1. For lands already distributed by the DAR to the farmer-beneficiaries where documentation and/or valuation are/is not yet complete (DNYD) AND for claims with the LBP, the formula shall be:
LV = (CNI x 0.90) + (MV x 0.10)
Where:
LV = Land Value
CNI = Capitalized Net Income which refers to the gross sales (AGP x SP) with assumed net income rate of 20% capitalized at 0.12
Expressed in equation form:
| (AGP x SP) x 0.20 | ||
| CNI | = | –––––––––––––––––– |
| 0.12 |
Where:
AGP = Annual Gross Production corresponding to the latest available 12 month's gross production immediately preceding 30 June 2009. The AGP shall be secured from the Department of Agriculture (DA) or Bureau of Agriculture Statistics (BAS). The AGP data shall be gathered from the barangay or municipality where the property is located. In the absence thereof, AGP may be secured within the province or region.
SP = The average of the latest available 12 months' selling prices prior to 30 June 2009 such prices to be secured from the Department of Agriculture (DA) or Bureau of Agricultural Statistics (BAS). If possible, SP data shall be gathered from the barangay or municipality where the property is located. In the absence thereof, SP may be secured within the province or region.
MV = Market Value per Tax Declaration which is the latest Tax Declaration and Schedule of Unit of Market Value (SUMV) issued prior to 30 June 2009. MV shall be grossed-up up to 30 June 2009.
The reckoning date of the AGP and SP shall be June 30, 2009.
2. For lands falling under Phase 1 of RA 9700, the basic formula shall be:
LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)
Where:
LV = Land Value
CNI = Capitalized Net Income which refers to the gross sales (AGP x SP) with assumed net income rate of 20% capitalized at 0.12. cCESaH
Expressed in equation form:
| (AGP x SP) x 0.20 | ||
| CNI | = | –––––––––––––––––– |
| 0.12 |
Where:
AGP = Annual Gross Production corresponding to the latest available 12 month's gross production immediately preceding 01 July 2009. The AGP shall be secured from the Department of Agriculture (DA) or Bureau of Agriculture Statistics (BAS). The AGP data shall be gathered from the barangay or municipality where the property is located. In the absence thereof, AGP may be secured within the province or region.
CS = Comparable Sales (based on fair market value Equivalent to 70% of BIR Zonal Value).
SP = The average of the latest available 12 months' selling prices prior to 01 July 2009 such prices to be secured from the Department of Agriculture (DA) or Bureau of Agricultural Statistics (BAS). If possible, SP data shall be gathered from the barangay or municipality where the property is located. In the absence thereof, SP may be secured within the province or region.
MV = Market Value per Tax Declaration which is the latest Tax Declaration and Schedule of Unit of Market Value (SUMV) issued prior to 01 July 2009. MV shall be grossed-up up to 01 July 2009.
In case CS is not present, the formula shall be:
LV = (CNI x 0.90) + (MV x 0.10)
The reckoning date of the AGP and SP shall be July 01, 2009.
V. Landowners Compensation
1. The LBP shall compensate the landowner as follows: 10% in cash and the balance in AR bonds.
2. The date of the issuance of the AR bonds shall be:
a. June 30, 2009 for lands already distributed by the DAR to the farmer-beneficiaries where documentation and/or valuation are/is not yet complete (DNPP) AND for claims with the LBP
b. Date of approval of the revaluation by LBP for rice and corn lands falling under Phase 1 of RA 9700
3. Release of payment to the landowner shall be subject to the submission of pre-payment/documentary requirements under PD 27/EO 228.
VI. Land Amortization
1. For PD 27 lands
The cost of the land computed by DAR pursuant to PD 27 formula, including interest at the rate of six percent (6%) per annum shall be paid by the tenant-farmer in fifteen (15) years of fifteen (15) equal annual amortization.
2. For EO 228 lands
In the case of rice/corn lands tenanted after October 21, 1972 and with Placement Order, the FB amortization shall be determined in accordance with EO 228 where the farmer-beneficiary or his heirs under PD 27 shall pay the total cost of the lands computed by DAR pursuant to EO 228 formula including interest at the rate of six percent (6%) per annum with a two percent (2%) interest rebate for amortization paid on time, to the Land Bank over a period of up to twenty (20) years in twenty (20) equal annual amortization.
VII. Repealing Clause
All Orders, circulars, issuances or portions thereof inconsistent herewith are hereby revoked, cancelled or modified as the case may be.
VIII. Effectivity
This Administrative Order shall take effect on 01 July 2009 and shall be published in at least two (2) newspapers of general circulation, pursuant to Section 31 of RA No. 9700. DaScCH
Diliman, Quezon City. February 12, 2010.
(SGD.) NASSER C. PANGANDAMANSecretary
Published in The Philippine Star and Manila Times on February 18, 2010.
ATTACHMENT
Republic of the PhilippinesDEPARTMENT OF AGRARIAN REFORMCertification
This is to certify that Administrative Order No. 01, Series of 2010 entitled "Rules and Regulations on Valuation and Landowners Compensation involving Tenanted Rice and Corn Lands under Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228" is published today, Thursday, 18 February 2010 at Philippine Star and Manila Times newspapers.
Issued this 18th day of February 2010 for whatever purpose it may serve.
(SGD.) HUGO D. YONZON IIIDirector, Public Affairs Staff
Cite This Law
Rules and Regulations on Valuation and Landowners Compensation Involving Tenanted Rice and Corn Lands Under Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228, DAR Administrative Order No. 001-10, Feb 12, 2010 (Philippines)
Rules and Regulations on Valuation and Landowners Compensation Involving Tenanted Rice and Corn Lands Under Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228, DAR Administrative Order No. 001-10 (Phil. 2010)
Related Laws
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- Revised Rules and Procedures Governing the Completion of the Documentation and Payment of Land Transfer Claims under Presidential Decree No. 27 and Executive Order No. 228DAR Administrative Order No. 06-15 • Nov 6, 2015 • Other Rules and Procedures
- Clarification on Item I Par. 3 of DAR AO 2, S. of 1987 (Policy Guidelines and Procedures in the Implementation of EO 228)DAR Memorandum Circular No. 010-08 • Sep 23, 2008 • Other Rules and Procedures
- Amendment to DAR AO No. 2-04 Re: Grant of Increment of 6% Yearly Interest on Lands Covered by PD 27 and EO 228DAR Administrative Order No. 06-08 • Jul 28, 2008 • Other Rules and Procedures
- Rules and Procedures Governing the Transferability of Lands Awarded to Agrarian Reform Beneficiaries Pursuant to P.D. No. 27, As AmendedDAR Administrative Order No. 08-95 • Dec 18, 1995 • Other Rules and Procedures
- Revised Rules and Procedures for the Exercise of Retention Right by LandownersDAR Administrative Order No. 05-00 • Aug 30, 2000 • Other Rules and Procedures
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