1. SHARE TENANCY
1.1. 2 persons agree on a joint undertaking for agricultural production wherein one party furnishes the land and the other his labor.
1.2. Abolished by Code of Agrarian Reforms of the Philippines. All share tenancy arrangements were automatically converted to leasehold.
1.2.1. Farmer cultivates the land belonging to, or possessed by, another with the latter's consent for a price certain in money or in produce or both.
1.2.2. Only form of agricultural tenancy arrangement under the law.
1.2.2.1. Can exist only under the following situations.
1.2.2.1.1. Area retained by the landowner is tenanted
1.2.2.1.2. Farmer-beneficiary leases the land awarded to him to another person.
1.2.2.1.3. Farmer-beneficiary leases the land awarded to him back to the former owner of the land.
1.2.2.1.4. Land awarded to a farmer's cooperative or association is leased to agricultural corporations,
1.2.2.2. Will apply only to the situations where the lessor is the landowner.
1.2.2.2.1. Farmers whose tenancy relations where automatically converted to leasehold by virtue of the Code of Agrarian Reforms of the Philippines.
1.2.2.2.2. Tenanted lands that were retained by the landowner, which were automatically converted to leasehold by virtue of the Comprehensive Agrarian Reform Law of 1988.
2. RIGHTS AND OBLIGATIONS OF PARTIES
2.1. Obligations
2.1.1. OBLIGATIONS OF LESSOR ntended to protect the interest of the agricultural lessee against harassment by the agricultural lessor.
2.1.1.1. He is obliged to keep the agricultural lessee in peaceful possession and cultivation of his landholding.
2.1.1.2. He is obliged to keep intact such permanent useful improvements existing on the landholding at the start of the leasehold relation.
2.1.2. OBLIGATIONS OF LESSEE
2.1.2.1. Cultivate and take care of the farm, growing crops, and other improvements on landholding as a good father of a family and perform all the work therein in accordance with proven farm practices.
2.1.2.2. Inform the lessor within a reasonable time of any trespass committed by third persons upon the farm, without prejudice to his direct action against the trespasser.
2.1.2.3. Take reasonable care of work animals and farm implements delivered to him by the agricultural lessor and see that they are not used for other purposes.
2.1.2.4. Keep his farm and growing crops attended to during work season.
2.1.2.5. Notify the lessor at least 3 days before date of harvesting or, whenever applicable, of threshing.
2.1.2.6. Pay due lease rental when it falls due.
2.2. Rights
2.2.1. RIGHTS OF LESSOR
2.2.1.1. Inspect and observe the extent of compliance with lease contract.
2.2.1.2. Propose change in the use of landholding.
2.2.1.3. Require lessee to adopt in his farm necessary practice for its improvement.
2.2.1.4. Mortgage expected rentals.
2.2.2. RIGHTS OF LESSEE
2.2.2.1. Possession and enjoyment of land.
2.2.2.2. Manage and work in a manner which conform to proven farm practices.
2.2.2.3. Mechanize all or any phase of his farm work.
2.2.2.4. Deal with millers and possessors and attend to the issuance of quedans and warehouse receipts.
2.2.2.5. Have a homelot.
2.2.3. OTHER RIGHTS OF LESSEE
2.2.3.1. Rights of lessee to be indemnified for his labor.
2.2.3.1.1. Cost and expenses incurred
2.2.3.1.2. 1/2 of the necessary improvements which are tangible and have not lost utility at end of lease.
2.2.3.2. Right of Pre-Emption
2.2.3.2.1. Lessee has the preferential right to by the land cultivated by him under reasonable terms.
2.2.3.2.2. If the lessee decides to sell the land, he shall give notice.
2.2.3.3. Right of Redemption
2.2.3.3.1. Redemptioner must be an agricultural lessee or share tenant.
2.2.3.3.2. Land must be sold to a third party without prior notice of sale.
2.2.3.3.3. Only area cultivated by lessee may be redeemed.
2.2.3.3.4. Must be exercised within 180 days from written notice of sale by vendee.
3. FORBIDDEN ACTS
3.1. Of Agricultural Lessor
3.1.1. Dispossess lessee without just cause
3.1.2. Require the agricultural lessee to assume, directly or indirectly, the payment of the taxes or part thereof levied by the government on landholding
3.1.3. Require the agricultural lessee to assume, directly or indirectly, any part of the rent, "canon" or other consideration which the agricultural lessor is under obligation to pay to third persons for the use of the land
3.1.4. Deal with the millers or processors without written authorization of the lessee in cases where the crop has to be sold in processed form before payment of the rental
3.1.5. Discourage, directly or indirectly, the formation, maintenance or growth of unions or organizations of agricultural lessees in his landholding, or to initiate, dominate, assist or interfere in the formation or administration of any such union or organization
3.2. Of the Agricultural Lessee
3.2.1. Work on additional landholdings belonging to a different lessor
3.2.2. Employ a sub-lessee on his landholding
4. ENFORCEABILITY OF LOANS OBTAINED BY AN AGRICULTURAL LESSEE
4.1. Must be written in a language or dialect known to the agricultural lessee.
4.2. Must be signed or thumb-marked by the agricultural lessee or his agent.
5. PROPERTIES THAT ARE EXEMPT FROM LIENS OR EXECUTION
5.1. 25% of the entire produce of the land under cultivation.
5.2. Work animals and farm implements, except upon a judgement for its price or upon a judgement of foreclosure of a mortgage thereon.
6. DEPARTMENT OF AGRARIAN REFORM
6.1. Implementing arm of the agrarian reform program.
6.2. The Code of Agrarian Reforms of the Philippines renamed the Land Authority as the Department of Agrarian Reform.
7. OBJECTIVE
7.1. To create a system of owner-cultivatorship and economic family-size farm as basis of Philippine agriculture.
8. HISTORY
8.1. Initially denominated as the Agricultural Land Reform Code.
9. COMPREHENSIVE AGRARIAN REFORM LAW OF 1998
9.1. Did not repeal the Code of Agrarian Reforms of the Philippines.
9.2. Code of Agrarian Reforms in the Philippines supplements the Comprehensive Agrarian Reform Law of 1998.
10. SALIENT FEATURES
10.1. It abolished the share tenancy system and replaced it with agricultural leasehold.
10.2. It established a bill of rights for agricultural workers.
10.3. It established the Department of Agrarian Reform as the machinery for the acquisition and distribution of agricultural land.
10.4. It established the Land Bank of the Philippines as the financial arm of the agrarian reform program.
11. AGRICULTURAL LEASEHOLD
11.1. Form
11.1.1. No particular form is required. May be oral or written.
11.2. Terms and Conditions
11.2.1. Agricultural lessor and lessee are free to enter into any kind of terms, conditions or stipulations in a leasehold contract as long as they are not contrary to law, morals or public policy.
11.2.1.1. Stipulations that are considered contrary to law, morals or public policy. Requiring the agricultural lessee: 1. to pay excessive rental; 2. to pay an amount in excess of the fair rental value for the use of the lessor's work animals or farm implement; 3. to rent work animals or hire farm implements from lessor or third person; 4. to make use of any store or services operated by the agricultural lessor or third person; 5. to render any service other than his duties and obligations as lessee, with or without compensation; 6. to answer for any fine, deductions and/or assessments; or 7. to accept a loan or to make payment therefor in kind.
11.3. Term of Lease
11.3.1. Term of lease is generally indefinite.
11.3.1.1. Agricultural lesses are entitled to security of tenure.
11.3.1.2. Expiration of the contract does not terminate leasehold relation.
11.3.1.3. Transfer of ownership of land does not terminate the lease relation.
11.3.1.4. Death or Physical Incapacity of the lessee does not terminate the leasehold relation.
11.3.1.4.1. The lessor must choose the successor. (if they are willing to personally cultivate the land holding)
11.3.2. Until the lease is terminated for a cause.
11.3.2.1. Cruel, inhuman or offensive treatment of the agricultural lessee or any member of hid immediate farm household by the agricultural lessor.
11.3.2.2. Non-compliance on the part of the agricultural lessor with any of his obligations under the code of Agrarian Reforms of the Philippines or lease contract.
11.3.2.3. Compulsion of the agricultural lessee or any member of his immediate farm household by the agricultural lessor to render any service not in any way connected with farm work, or even without compulsion if compensation is not paid
11.3.2.4. Commission of a crime by the agricultural lessor/his representative against lessee/any member of his farm household.
11.3.2.5. Voluntary surrender due to circumstances more advantageous to him and his family.
11.4. When extinguished
11.4.1. Abandonment of the landholding without the knowledge of the agricultural lessor.
11.4.1.1. There must be intent to abandon.
11.4.1.2. There must be actual act of abandonment.
11.4.2. Voluntary surrender of the landholding by the agricultural lessee.
11.4.2.1. Surrender of landholding must be voluntary on the part of the farmer-lessee.
11.4.2.2. The farmer lessee must serve 3 months advance notice.
11.4.3. Absence of the persons under Section 9 to succeed to the lessee, in the event of death or permanent incapacity of lesssee.