Article 9Determination of Land Value

For the purpose of determining the cost of the land to be transferred to the tenant-farmer, the value of the land shall be equivalent to two and one-half (2-1/2) times the average harvest of three (3) normal crop years immediately preceding the promulgation of Presidential Decree No. 27 on October 21, 1972. The total cost of the land, including interest at the rate of six percent (6%) per annum, shall be paid by the tenant in fifteen (15) years of fifteen (15) equal annual amortizations. In case of default, the amortization due shall be paid by the farmers' cooperative in which the defaulting tenant-farmer is a member, with the cooperative having a right of recourse against him. As amended by P.D.

No. 570-A, "Amending Certain Sections of Provisions of this Chapter have been amended by R.A. No. 6657 (1988), "Comprehensive Agrarian Reform Law," which expired on June 10, 2008.

See also R.A. No. 6657, "Comprehensive Agrarian Reform Law of 1988," Sec. 2 of which provides: "Declaration of Principles and Policies. - It is the policy of the State to pursue a Comprehensive Agrarian Reform Program (CARP). The welfare of the landless farmers and farmworkers will receive the highest consideration to promote social justice and to move the nation toward sound rural development and industrialization, and the establishment of owner cultivatorship of economic-size farms as the basis of Philippine agriculture of economic-size farms as the basis of Philippine agriculture. . . ."

Modified by Sec. 17 of R.A. No. 6657 which provides that "[I]n determining just compensation, the cost of acquisition of the land, the current value of like properties, its nature, actual use and income, the sworn valuation by the owner, tax declarations, and the assessment made by government assessors shall be considered. The social and economic benefits contributed by the farmers and the farmworkers and by the government to the property as well as the non-payment of taxes or loans secured from any government 1987 financing institution on the said land shall be considered as additional factors to determine its valuation." 4 of 159 The government shall guarantee such amortizations with shares of stock in government-owned and government-controlled corporations.