ElliPTICALROAD, DIUMAN, QUEZ/?NCrIY TELS. 928-7031 TO39 ADMlNIS1RATIVEORDERNO. 0 L Seriesof2014 SUBJECT: RULES AND REGULATIONS ON LEASEHOLD OPERATIONS IN TENANTED COCONUT LANDS AFFECI'ED BY FORTUITOUS EVENTS, NATURAL DISASTERS OR CALAMmES. In order to address and tn1tJgate the effect of fortuitous events or natural disasters/calamities onlandholdings devoted to coconutproduction, and toattend to and improve the economic condition of the agricultural lessees-tenants on coconut lands devastatedbysuchfortuitouseventsornaturaldisasters/calamities,thefollowingguidelines concerningthe review and adjustment oflease rentals in tenanted coconut lands affected therebyareherebyprescribed: I. COVERAGE Theserulesandregulations shallapplytoalltenantedcoconutlandholdings,withor without a leasehold agreement, which have been affected by fortuitous events ornatural disasters/calamitiesas definedinparagraphIIhereof. II.DEFINITIONOFTERMS Fortuitous Event- refers not only to events that are unforeseeable, but also those which are foreseeable but inevitable. It may either be an "act ofGod", or natural occurrences such as floods ortyphoons, oran "actofman", such as riots, strikes, or wars. NaturalDisasterI Calamity- is amajoradverseeventresultingfromnaturalprocesses ofthe earth. These include typhoons, floods, storm surges, earthquakes, volcanic eruptions, landslides, droughts, andthe like, whichresultinloss oflife anddamage to property,andtypicallyleaveeconomicdamagetotheaffectedpopulation. Heavy"Damaged Coconut Trees - are those with broken branches and twisted/brokenfronds,atleast fifty percent(50%) ofthe irrunature nuts of which have fallen, Suchtreesmaytakeabouttwo (2) tothree(3) yearstorecoverproduction. Totally-DamagedCoconutTrees-arethosetreeswhichare erownlessorhavefallen down,orwherethefrondsareheavilyshakenand/orcrackedThesearetreeshavingno chance of survival in which100%ofthe nut production will be peemanenrly lost. 2 PrincipalCrop- is any product/cropraised from thedominant cultivation oruse of theland,andharvestedonaregularbasis. OtherCrops - refers to any product/crop raised otherthan the crop to which the cultivation ofthe land is principally devoted in each agricultural year, andwhich shall serve as a temporary crop while the principal or replanted coconuttrees are under a gestationperiod. III.POllCYSTATEMENTS A. No tenant-lessee shall be ejected or dispossessed or removed from his/her farmholdingduetothenon-paymentoflease rentals as aresultofafortuitousevent ornaturalcalamity/disaster,exceptwhenhis/herdispossessionhas beenauthorized byanappropriatebodyorcourtinajudgmentthai:is finalandexecutory. B. Said tenant-lessee shall renegotiate a new leasehold agreement with the landownerspecifyingthenewtermsand conditionsoftheirtenan<;yrelation oragreements.particularlywith respecttothepaymentofthe lease rental,planting ofcrops,andchangeofcrop,ifnecessaryanduponagreement.Thisdoesnotimply thatthetenancyrelationshiphasbeenextinguishedbythefortuitousevent. C. Theconsideration forthelease shall notbemorethanthe equivalentoftwentyfive percent (25%) oftheaverage normal harvestduringthe three (3) agriculturalyears immediately preceding the date the leasehold was established after deducting the amountused fur seeds and the costofharvesting, threshing, loading, hauling and processing,whicheverareapplicable. If thelandwas cultivatedforless thanthree(3) years, the initial consideration shall be based on the average normal harvest ofthe precedingyear/swhenthelandwas actuallycultivated,orontheharvestofthefirst year in the case ofnewly cultivated lands, ifthatharvestis normal (Section 34, I" proviso,R.A.No.3844). Wherethe coconuttrees onthesubjectlandholdingareheavilyortotally-damaged due to afortuitous eventornatural calamity/disasterresultingin a crop failure, the tenant-lessee's securityoftenure shall be maintained despite thefailure to paylease rentals. Duringthe periodwhen thelandholdingis beingrehabilitated, through the re-plantingoftheprincipalcrop (coconuttrees) andwhile thesaid principalcropis still in the gestation stage orwhere production has not yet attained its average normalharvest,the tenant,lesseeshall beallowedtoplantothercropssubjectto the precedingparagraph.Theothercropsplantedshall serveasthetemporarycrop. D. Subject to Memorandum Circular No. OS, Series of2013 issued by the Philippine Coconut Authority (PCA), the affected tenant-lessee shall be allowed to cut and transportcoconuttrees, provided thatthe necessary pennitshall besecured from the PeA,pursuantto R.A. No. 10593andits pertinent existingpolicies, rules, and regulations. E. The netproceeds ofthe cutcoconuttrees, afterdeductingthe costofcuttingand hauling, which shall be reimbufryd to the partywho shoulders the said expenses, i / t /' 3 shaJ.llikewisebedividedbetweenthetenant-lesseeandlandowner-lessorinamanner agreed by them, provided thatin no case maytheshareofthetenant-lessee be less than seventyfive percent(75%) ofthenetproceeds.Incaseofdisagreement, orif the landowner-lessor can no longerbelocated, the 75%-25% ratio in favor ofthe tenant-lessee shall be imposed. Ifthe landowner is present, the amount shall be given to him/her. However, if the landowneris notpresentorrefuses to receive his/her share, the Municipal Agrarian Refonn Program Officer (MARPO) shall advise said landowner orhis/hersuccessorcin-interest in writingand by registered mail. Furthermore,the twenty-five percent(25%) shareofthe landownerthatwas notclaimed shall bedepositedunderhis/hernamein thenearestLandBankofthe Philippines (LBP) branch in the locality, within thirty (30) days from the receipt thereof. IV. OPERATING PROCEDURES The following shall be the duties and obligations of the Municipal .Agrarian Reform ProgramOfficer(MARPO): A. TheMARFO,attheinstanceofthetenant-lesseeorlandowner-lessor,shallvalidate the information that the tenanted coconutlandholdings are affected by fortuitous eventornaturalcalamity/disaster.TheMARFOshallthereuponissueaCertification that acertain landholding is damaged by a fortuitous event or natural calamity/disaster. B. Upon validation, the MARPO shall immediately send an invitation letter to the tenant-lesseeandlandowner-lessorforaconference,andundertakethefollowing: 1) Inform the parties that the security of tenure ofthe tenant-lessee shall be maintaineddespitethefailuretopayleaserental. 2) A new leasehold agreement shall be formulated in accordance with the formalities prescribed under existing laws and pertinent DAR rules and regulations. Any agreement reached by the parties, which are not contrary to law/morals,customs,publicpolicy,andpublicorder,shall berespected. 3) In case the parties fuil to reach anagreement,the J\1ARPO shall determine or compute the leasehold rental in accordance with the pertinent rules and regulations.Thereafter,theMARFOshallissuetheProvisionalLeaseholdRent:l1 (pLR), which must be followed by both parties. In case any ofthe parties disagree with thePLR, thesame shall beforwarded to the Provincial Agrarian Reform Adjudicator (pARAD) for the determination oflease rental. In the meantime, the PLR shall be in due course observed by the parties until the PARADshallhavefixed theleaserentals. 4 IV. REPEAUNG CLAUSE. All orders, circulars, rules, and regulations inconsistent herewith are hereby revoked, amended, or modified accordingly. V. EFFECTIVI1Y. 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 Republic Act (R.A.) No. 6657, as' amended, and its registration with the Office of the National Administrative Register (ONAR). FEB 2 6 Diliman, Quezon City, 2014
Department of Agrarian Relorm
't/t'I-&>14 Published in the (2) Natuinal Newspaper of general Circulations: 1. Malaya Business Insight 2. Business Mirror Date of Publication - March 04, 2014 Republic of the Philippines DEPARTMENTofAGRARIANREFORM CERTIFICATION This is to certify that Administrative Order No.2, Series of 2014 entitled "RULES AND REGULAnONS' ON LEASEHOLD OPERAnONS IN TENANTED COCONUT LANDS AFFECTED BY FORTIDTOUS EVENTS, NATURAL DISASTERS OR CALAMITIES" was published today, Tuesday, 04 March 2014 at Malaya Business Insight and Business Mirror newspapers. Issued this 4th day ofMarch 2014 for whatever purpose it may serve. MA. FAUSTINO R. MJ Public Assistance and Media Relations Service Elliptical Road, Diliman, Quezon City Tel. (632) 928-7031 to 39