This Supreme Court decision clarifies the Department of Agrarian Reform’s (DAR) authority over agricultural land reclassification and conversion. The Court affirmed that lands reclassified to non-agricultural uses after June 15, 1988, still require DAR conversion clearance before they can be used for non-agricultural purposes. This ruling impacts landowners seeking to develop agricultural land for other uses, emphasizing the need to comply with DAR regulations even if local government units have already reclassified the land.

From Farms to Factories: When Does DAR Still Call the Shots?

The Chamber of Real Estate and Builders Associations, Inc. (CREBA) filed a petition challenging the Department of Agrarian Reform (DAR) Administrative Order (AO) No. 01-02, as amended, and DAR Memorandum No. 88. CREBA argued that the DAR Secretary exceeded his jurisdiction by regulating lands already reclassified for residential, commercial, or industrial uses by local government units (LGUs). CREBA contended that these administrative issuances violated the local autonomy of LGUs and the due process rights of landowners. The central issue was whether the DAR Secretary has jurisdiction over lands reclassified as non-agricultural after the effectivity of Republic Act No. 6657 on June 15, 1988.

The Supreme Court ultimately dismissed CREBA’s petition, upholding the DAR’s authority. The Court emphasized the distinction between reclassification and conversion. Reclassification, as defined in the decision, is the act of specifying how agricultural lands shall be utilized for non-agricultural purposes. Conversion, on the other hand, is the act of changing the current use of agricultural land to some other use, which requires approval by the DAR. The Court cited Alarcon v. Court of Appeals, highlighting the distinction:

Conversion is the act of changing the current use of a piece of agricultural land into some other use as approved by the DAR while reclassification is the act of specifying how agricultural lands shall be utilized for non-agricultural uses such as residential, industrial, and commercial, as embodied in the land use plan, subject to the requirements and procedures for land use conversion.

Building on this principle, the Court clarified that a mere reclassification of agricultural land does not automatically allow a landowner to change its use. Landowners must still undergo the process of conversion and secure DAR approval before using the land for other purposes. This requirement applies even if the reclassification was initiated by LGUs or through Presidential Proclamations, provided it occurred on or after June 15, 1988.

The Court addressed CREBA’s argument that DAR AO No. 01-02, as amended, violated the local autonomy of LGUs. The Court noted that Section 20 of Republic Act No. 7160, or the Local Government Code, itself recognizes the DAR’s authority over land conversion. The provision states:

Nothing in this Section shall be construed as repealing, amending, or modifying in any manner the provisions of R.A. No. 6657.

This explicit reservation of Republic Act No. 6657’s provisions affirmed that the power of LGUs to reclassify agricultural lands is not absolute and is subject to the DAR’s conversion authority. The Court found that DAR AO No. 01-02, as amended, did not violate the due process or equal protection clauses of the Constitution. The penalties provided in the administrative order were aligned with the provisions of Republic Act No. 6657 and Republic Act No. 8435, which penalize illegal or premature conversion of agricultural lands. By aligning administrative penalties with legislative mandates, the DAR was within its authority to execute laws enacted by Congress.

Furthermore, the Supreme Court addressed the petitioner’s argument regarding the unconstitutionality of DAR Memorandum No. 88, which temporarily suspended land use conversion. The Court found that the memorandum was issued to address rice shortages and to ensure sufficient agricultural land for rice cultivation. The issuance was deemed a valid exercise of police power for the general welfare of the public.

The Court also emphasized that the petition was improperly filed directly with the Supreme Court, violating the principle of the hierarchy of courts. Generally, petitions for certiorari should be filed with the Regional Trial Court or the Court of Appeals before reaching the Supreme Court, unless there are special and important reasons justifying a direct resort. No such compelling reasons were presented in this case. In Heirs of Bertuldo Hinog v. Melicor, the Court laid down the general rule:

A direct invocation of the Supreme Court’s original jurisdiction to issue these writs should be allowed only when there are special and important reasons therefor, clearly and specifically set out in the petition.

The ruling reinforces the DAR’s critical role in regulating land use conversion. This authority ensures the preservation of agricultural lands and the prioritization of food security, even in areas undergoing rapid urbanization. It also emphasizes the need for landowners to comply with both local reclassification requirements and DAR conversion processes to avoid potential legal complications and penalties. While LGUs can reclassify land, the ultimate authority to change its use from agricultural lies with the DAR for lands reclassified after June 15, 1988.

In conclusion, this case clarifies that reclassification of agricultural land by LGUs does not automatically allow for non-agricultural use if such reclassification occurred after June 15, 1988. Landowners must still seek conversion approval from the DAR. The decision underscores the balance between local autonomy and national policy in land use management, affirming the DAR’s role in safeguarding agricultural resources.

FAQs

What was the key issue in this case?	The central issue was whether the DAR Secretary has jurisdiction over lands reclassified for non-agricultural uses by LGUs after June 15, 1988. CREBA challenged DAR’s authority, arguing it infringed on local autonomy and landowners’ rights.
What is the difference between land reclassification and land conversion?	Reclassification is the act of specifying how agricultural lands shall be utilized for non-agricultural purposes in a land use plan. Conversion, however, is the act of changing the current use of agricultural land to another use, requiring DAR approval.
Does reclassification by an LGU automatically allow a landowner to use the land for non-agricultural purposes?	No, reclassification alone is not sufficient. If the reclassification occurred on or after June 15, 1988, the landowner must still obtain conversion clearance from the DAR before changing the land’s use.
What is the significance of June 15, 1988, in this case?	June 15, 1988, is the date Republic Act No. 6657 (the Comprehensive Agrarian Reform Law) took effect. This date serves as the cutoff for automatic reclassifications of agricultural lands that no longer require DAR conversion clearance.
Did the Supreme Court find DAR Administrative Order No. 01-02, as amended, unconstitutional?	No, the Court upheld the validity of DAR Administrative Order No. 01-02, as amended. It found that the DAR Secretary acted within his authority in issuing the administrative order to implement land use conversion provisions.
Did DAR Memorandum No. 88 violate the Constitution?	No, the Court found that DAR Memorandum No. 88, which temporarily suspended land use conversion, was a valid exercise of police power. It was issued to address rice shortages and ensure sufficient agricultural land for rice cultivation.
Why was CREBA’s petition dismissed?	The petition was dismissed because it was improperly filed directly with the Supreme Court, violating the principle of the hierarchy of courts. Additionally, the Court found no grave abuse of discretion by the DAR Secretary.
What is the practical implication of this ruling for landowners?	Landowners seeking to use agricultural lands for non-agricultural purposes must comply with both local reclassification requirements and DAR conversion processes. Failure to obtain DAR clearance can result in legal complications and penalties.

This Supreme Court decision provides crucial guidance on the division of authority over land use. It is essential for landowners, developers, and local government units to understand these distinctions to ensure compliance with relevant laws and regulations. By clarifying the roles of LGUs and the DAR, the ruling promotes a more predictable and legally sound framework for land use planning and development.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: CREBA vs. DAR, G.R. No. 183409, June 18, 2010