Supplemental Rules and Regulations for Administrative Order No. 02, Series of 2014 on Leasehold Operations in Tenanted Coconut Lands Affected by Fortuitous Events, Natural Disasters, or Calamities

September 15, 2014

DAR ADMINISTRATIVE ORDER NO. 08-14

 

In view of the recent massive infestation of scale insects, scientifically known as "Aspidiotus rigidus" (or Cocolisap), which poses a very serious threat to the economic condition and security of tenure of the tenants-lessees on coconut landholdings, as well as on other landholdings planted to high-value crops (like coffee, cacao, mangosteen, etc.), these supplemental rules and regulations on Administrative Order (A.O.) No. 02, Series of 2014, are hereby prescribed.

I. Coverage

These supplemental rules and regulations shall apply to all tenanted coconut landholdings, as well as to high-value crops (like coffee, cacao, mangosteen, etc.), which are cultivated under the coconut trees or near coconut plantations, with or without a leasehold agreement, which have been affected by scale insects.

II. Policy Statement

No tenant-lessee shall be ejected or dispossessed or removed from his/her farmholding due to the non-payment of lease rentals as a result of infestation by scale insects thereof, except when his/her dispossession has been authorized by an appropriate body or court in a judgment that is final and executory.

Said tenant-lessee may renegotiate a new leasehold agreement with the landowner, specifying the new terms and conditions of their relationship or arrangement particularly with respect to the payment of the lease rentals, planting of crops, and change of crop, if necessary and upon mutual agreement. This does not imply, however, that the tenancy or leasehold relationship has been extinguished due to the scale insect infestation of the tenant-lessee's farmholding. TCIHSa

As a general rule, the consideration for the lease shall not be more than the equivalent of twenty five per cent (25%) of the average normal harvest during the three (3) agricultural years immediately preceding the date the leasehold was established, after deducting the amount used for seeds and the cost of harvesting, threshing, loading, hauling, and processing, whichever is applicable. If the land was cultivated for less than three (3) years, the initial consideration shall be based on the average normal harvest of the preceding year/s when the land was actually cultivated, or on the harvest of the first year in the case of newly cultivated lands, if that harvest is normal (Section 34, 1st proviso, R.A. No. 3844).

During the period when the landholding is being rehabilitated due to scale insect infestation, through re-planting and while the same still in the gestation stage or where production has not yet attained its average normal harvest, the tenant-lessee shall be allowed to plant other crops on the subject landholding. However, once the re-planted coconut trees and other high value crops have already attained their normal harvest, the initial consideration of 25% shall be based on the first harvest. On the other hand, the other crops planted shall serve as the temporary crop subject to the payment of 25% lease rental.

The affected tenant-lessee shall be allowed to cut and transport coconut trees, provided that the necessary permit shall be secured from the Philippine Coconut Authority (PCA), pursuant to PCA Order No. 01, Series of 2013, or the implementing rules and regulations for Republic Act (R.A.) No. 8048, as amended by R.A. No. 10593.

The net proceeds of the cut coconut trees, after deducting the cost of cutting and hauling, which shall be reimbursed to the party who shoulders said expenses, shall be divided between the tenant-lessee and landowner-lessor in a manner agreed by them, provided that in no case may the share of the tenant-lessee be less than seventy five per cent (75%) of the net proceeds. In case of disagreement, or if the landowner-lessor can no longer be located, the 75%-25% ratio in favor of the tenant-lessee shall be imposed. If the landowner is present, the amount shall be given to him/her. However, if the landowner is not present or refuses to receive his/her share, the Municipal Agrarian Reform Program Officer (MARPO) shall deposit the landowner's share under the latter's name in the nearest Land Bank of the Philippines (LBP) branch in the locality, within thirty (30) days from the receipt thereof. Thereafter, the MARPO shall advise the said landowner or his/her successor-in-interest in writing and by registered mail of the fact of such deposit. ITaCEc

IV. Operating Procedures

The operating procedures under A.O. No. 02, Series of 2014 shall likewise be followed and applied.

IV. n Repealing Clause

All orders, circulars, rules, and regulations inconsistent herewith are hereby revoked, amended, or modified accordingly.

V. Effectivity

This A.O. shall take effect after ten (10) days after its publication in two (2) newspapers of general circulation, pursuant to Section 49 of (R.A.) No. 6657, as amended, and its registration with the Office of the National Administrative Register (ONAR).

Diliman, Quezon City, September 15, 2014.

(SGD.) VIRGILIO R. DE LOS REYESSecretary

n Note from the Publisher: Copied verbatim from the official copy.

Published in the Malaya Business Insight and Business Mirror on October 13, 2014.