Agrarian Reform Exemptions: Understanding When DAR Can Revoke Land Exemptions

ANIBAN NG NAGKAKAISANG MAMAMAYAN NG HACIENDA DOLORES (ANMHD/ANIBAN), INC. VS. FL PROPERTIES AND MANAGEMENT CORPORATION AND LLL HOLDINGS, INC., G.R. No. 224457 & DEPARTMENT OF AGRARIAN REFORM VS. FL PROPERTIES AND MANAGEMENT CORPORATION AND LLL HOLDINGS, INC., G.R. No. 224965, January 23, 2023

Imagine a farmer tilling land, hopeful for a future secured by agrarian reform. Then, an exemption order throws everything into doubt. This scenario highlights the tension between landowners and land reform beneficiaries in the Philippines, a tension often resolved by the Department of Agrarian Reform (DAR).

This case, Aniban ng Nagkakaisang Mamamayan ng Hacienda Dolores (ANMHD/ANIBAN), Inc. vs. FL Properties and Management Corporation and LLL Holdings, Inc., delves into the DAR’s authority to revoke previously issued exemption orders. It clarifies that the DAR can indeed revoke these orders if the conditions for exemption no longer exist. This article will dissect this ruling, explaining its legal context, implications, and answering common questions.

The Core Issue: DAR’s Power to Revoke

At the heart of the case lies the question: Can the DAR revisit and revoke its own exemption orders, even after they’ve become final? The Supreme Court answered yes, affirming the DAR’s mandate to ensure agrarian reform truly benefits landless farmers.

Legal Foundation: CARP and Exemption Rules

The Comprehensive Agrarian Reform Program (CARP), enshrined in Republic Act No. 6657, aims to distribute land to landless farmers. However, certain lands are exempt. Section 10 of RA 6657 outlines these exemptions, including lands with slopes of 18% or over and lands used for specific non-agricultural purposes.

Crucially, these exemptions aren’t set in stone. Department of Agrarian Reform Administrative Order No. 13 (1990) outlines the process for reviewing and potentially revoking exemptions:

“The Undersecretary for Legal Affairs shall monitor and evaluate the implementation of this Order and submit a quarterly report to the Secretary relative thereto. For this purpose, [they] shall cause the periodic review of all Certificates of Exemption to determine whether the condition/s for which the exemptions were granted still exist. If not, [they] shall recommend the revision or revocation of the Certificates as the case may be.”

This provision recognizes that land use and characteristics can change. What was once an undeveloped, steep slope might become terraced and cultivated. A property initially used for a school site could be repurposed.

Hypothetical Example: Imagine a vast sugarcane field initially exempted because it was deemed an industrial tree plantation. Years later, the owner converts it into a residential subdivision without proper DAR approval. The DAR, under this ruling, can revoke the exemption and subject the land to CARP coverage.

The Hacienda Dolores Case: A Detailed Look

Here’s how the Hacienda Dolores case unfolded:

• 2005-2006: FL Properties and LLL Holdings secured exemption orders for Hacienda Dolores based on the land’s steep slopes and agricultural underdevelopment.
• 2011: ANIBAN, a farmer’s organization, sought to revoke these exemptions, arguing that portions of the land were now cultivatable.
• 2012: The DAR Regional Office initially dismissed ANIBAN’s petition but later partially modified its decision, lifting the exemptions on portions with slopes below 18%.
• Subsequent Appeals: FL Properties and LLL Holdings challenged this decision, leading to a Court of Appeals ruling that favored the landowners, permanently enjoining the DAR from covering the properties under CARP.
• Supreme Court: The Supreme Court reversed the Court of Appeals, upholding the DAR’s authority to revoke exemption orders when conditions change.

The Supreme Court emphasized the DAR’s mandate and the importance of procedural compliance. Here are two key quotes:

“The aforementioned laws are clear in stating that the Department of Agrarian Reform has exclusive and original jurisdiction in settling all issues and matters relating to the implementation of CARP. Among these include the authority to determine which lands should be included and excluded from CARP coverage.“

“We agree with the petitioner [DAR]. Republic Act No. 6657, as amended, identifies the lands which shall be excluded from CARP coverage…These are conditions which are susceptible to change. Thus, the Department of Agrarian Reform is authorized to conduct a periodic review of the exempted lands.“

Implications and Actionable Advice

This ruling reinforces the DAR’s oversight role in agrarian reform. It means that landowners cannot assume that an exemption order is a permanent shield against CARP coverage.

Key Lessons:

• Landowners: Regularly assess your property to ensure it still meets the conditions for exemption. Any changes in land use or characteristics should be promptly reported to the DAR.
• Farmers: If you believe that previously exempted land now qualifies for CARP coverage, gather evidence and petition the DAR for a review.
• Procedural Compliance: All parties must strictly adhere to procedural rules in agrarian reform cases. Failure to exhaust administrative remedies or file appeals on time can be detrimental.

Frequently Asked Questions (FAQs)

Q: Can the DAR revoke an exemption order after many years?

A: Yes, the DAR has the authority to review and revoke exemption orders if the conditions for the exemption no longer exist, regardless of how long ago the order was issued.

Q: What happens if a landowner converts agricultural land to non-agricultural use without DAR approval?

A: The DAR can revoke any existing exemption order and subject the land to CARP coverage. The landowner may also face penalties.

Q: What evidence is needed to support a petition for CARP coverage of previously exempted land?

A: Evidence can include updated land surveys, photographs, agricultural development reports, and testimonies from farmers or local officials.

Q: Does this ruling mean all previously exempted lands are now subject to CARP?

A: No. It simply clarifies that exemption orders are not permanent and can be reviewed if the conditions for exemption change.

Q: What recourse does a landowner have if the DAR revokes an exemption order?

A: The landowner can appeal the DAR’s decision to the Regional Trial Court and, if necessary, to higher courts.

Q: Is it possible to obtain CARP exemption for forest land?

A: Yes, provided you satisfy the requirements under the law. You may also need to secure clearances and certifications from other government agencies such as the Department of Environment and Natural Resources (DENR)

Q: What happens to land titles already issued?

A: Land titles are not necessarily permanent and are subject to judicial review.

ASG Law specializes in agrarian reform law and land disputes. Contact us or email hello@asglawpartners.com to schedule a consultation.