Article 109Labor and Agrarian Laws and Social Legislation, p. 109

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

(6)

To

make

the

small

farmers

more

independent,

self-reliant and responsible citizens, and a source of

genuine strength in our democratic society;

(7) To give first priority to measures for the adequate and

timely

financing

of

the

Agrarian

Reform

Program

pursuant to House Joint Resolution Numbered Two,

otherwise known as the Magna Carta of Social Justice

and Economic Freedom; existing laws; executive and

administrative orders; and rules and regulations to the

contrary notwithstanding;

(8) To involve local governments in the implementation of

the Agrarian Reform Program; and

(9) To evolve a system of land use and classification.

Section 3. Composition of Code . — In pursuance of the

policy

enunciated

in

Section two, the following are

established under this Code:

(1) An agricultural leasehold system to replace all existing

share tenancy systems in agriculture;

(2) A system of crediting rental as amortization payment

on purchase price;

(3) A declaration of rights for agricultural labor;

(4)

A

machinery

for

the

acquisition

and

equitable

distribution of agricultural land;

(5)

An

institution

to

finance

the

acquisition

and

distribution of agricultural land;

(6) A machinery to extend credit and similar assistance to

agricultural

lessees,

amortizing

owners-cultivator,

owners-cultivator and cooperatives;

(7) A machinery to provide marketing, management, and

other technical assistance and/or services to agricultural

lessees, amortizing owners-cultivator, owners-cultivator,

and cooperatives;

(8) A machinery for cooperative development;

(9) A department for formulating and implementing

projects of agrarian reform;

(10) An expanded program of land capability survey,

classification, and registration;

(11) A judicial system to decide issues arising under this

Code and other related laws and regulations; and

(12) A machinery to provide legal assistance to agricultural

lessees,

amortizing

owners-cultivator,

and

owners-cultivator.

CHAPTER I AGRICULTURAL LEASEHOLD

SYSTEM

Section

4.

Automatic

Conversion

to

Agricultural

Leasehold . — Agricultural share tenancy throughout the

country, as herein defined, is hereby declared contrary to

public policy and shall be automatically converted to

agricultural leasehold upon the effectivity of this section.

The

credit

assistance

traditionally

extended

by

a

land-owner and a local lender to a tenant under the share

tenancy systems in agriculture for production loans and

loans

for

the

purchase

of

work

animals,

tillage

equipment, seeds, fertilizers, poultry, livestock feed and

other similar items, and advances for the subsistence of a

lessee

and

his

family,

may

be

continued

by

said

landowner and local lender: Provided , That the total

charges on these loans, including interest and service,

inspection and issuance fees, shall not exceed fourteen

per cent per calendar year and the principal thereof shall

not be subject to upward adjustment even in case of

extraordinary

inflation

and/or

devaluation:

Provided,

further , That on all loans or advances other than money,

the interest shall be computed on the basis of the current

price of the goods at the time when the loans or

advances were made.

Any work animal and tillage equipment in the possession

of a share tenant but owned by a landowner shall

automatically be sold to said tenant on installment for a

period not exceeding five years and at a price agreed

upon by the parties: Provided, however , That the tenant

shall pay in advance ten per cent of the price agreed

upon.

Existing share tenancy contracts may continue in force

and effect in any region or locality, to be governed in the

meantime by the pertinent provisions of Republic Act

Numbered Eleven hundred and ninety-nine, as amended,

until the end of the agricultural year when the President

of the Philippines shall have organized by executive order

the Department of Agrarian Reform in accordance with

the

provisions

of

this

amendatory

Act, unless such

contracts provide for a shorter period or the tenant

sooner exercises his option to elect the leasehold system:

Provided , That in order not to jeopardize international

commitments,

lands

devoted

to

crops

covered

by

marketing allotments shall be made the subject of a

separate

proclamation

by

the

President

upon

recommendation of the department head that adequate

provisions,

such as the organization of cooperatives,

marketing

agreement,

or

other

similar

workable

arrangements,

have

been

made

to

insure

efficient

management on all matters requiring synchronization of

the agricultural with the processing phases of such crops.

In case some agricultural share tenants do not want to

become

agricultural

lessees

of

their

respective

landholding, they shall, with the assistance of the Bureau

of

Agrarian

Legal

Assistance,

notify

in

writing

the

landowners concerned. In such a case, they shall have

one agricultural year from the date of the notice to

accept leasehold relationship, otherwise the landowner

may proceed to their ejectment. (Amendments to RA No.

3844 (Agricultural Land Reform Code), Republic Act No.

6389, [September 10, 1971])

Section

5.

Establishment

of

Agricultural

Leasehold

Relation - The agricultural leasehold relation shall be

established

by operation of law in accordance with

Section four of this Code and, in other cases, either orally

or in writing, expressly or impliedly.

Section 6. Parties to Agricultural Leasehold Relation -

The agricultural leasehold relation shall be limited to the

person who furnishes the landholding, either as owner,

civil law lessee, usufructuary, or legal possessor, and the

person who personally cultivates the same.

Section 7. Tenure of Agricultural Leasehold Relation -

The agricultural leasehold relation once established shall

confer upon the agricultural lessee the right to continue

working on the landholding until such leasehold relation

is extinguished. The agricultural lessee shall be entitled to

security of tenure on his landholding and cannot be

ejected therefrom unless authorized by the Court for

causes herein provided.

Section 8. Extinguishment of Agricultural Leasehold

Relation - The agricultural leasehold relation established

under this Code shall be extinguished by:

(1)

Abandonment

of

the

landholding

without

the

knowledge of the agricultural lessor;

(2)

Voluntary

surrender

of

the

landholding

by

the

agricultural lessee, written notice of which shall be served

three months in advance; or

(3) Absence of the persons under Section nine to succeed

to

the lessee, in the event of death or permanent

incapacity of the lessee.

Section

9.

Agricultural

Leasehold

Relation

Not

Extinguished by Death or Incapacity of the Parties - In

case of death or permanent incapacity of the agricultural

lessee

to

work

his

landholding,

the

leasehold

shall

continue between the agricultural lessor and the person

who can cultivate the landholding personally, chosen by

the agricultural lessor within one month from such death

or permanent incapacity, from among the following: (a)

the surviving spouse; (b) the eldest direct descendant by

consanguinity;

or (c) the next eldest descendant or

descendants in the order of their age: Provided, That in

case

the

death

or

permanent

incapacity

of

the

© Compiled By RGL

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