September 23, 2008

DAR MEMORANDUM CIRCULAR NO. 10-08

TO                :     All Regional Directors, All Provincial Agrarian Reform Officers, All Concerned

SUBJECT    :     Clarification on Item I Paragraph 3 of Department Administrative Order No. 2, S. of 1987, Entitled, Policy Guidelines and Procedures in the
                         Implementation of Executive Order No. 228

Item I paragraph 3 of Department Administrative Order No. 2, Series of 1987, entitled, Policy Guidelines and Procedures in the Implementation of Executive Order No. 228, provided that:    THCSAE

"3.     In case of rice/corn lands tenanted after October 21, 1972 and placed under OLT coverage pursuant to Department Memorandum Circular No. 2, series of 1978, the valuation of such lands and the amount of landowner's compensation and FB amortization shall be determined in accordance with E.O. No. 229. However, the valuation of rice/corn lands placed under OLT by virtue of an Order of Placement issued prior to August 18, 1987 shall be governed by the provisions of E.O. 228 and shall use the government support price at the time the Placement Order was issued."    DCcHAa

In view of varying interpretations on the intent and purpose of the above provision, this Memorandum Circular is hereby issued clarifying that:

1.         P.D. 27 landholdings tenanted after 21 October 1972 where the Order of Placement as well as production data had been issued, generated and submitted to the DAR Central Office prior to 18 August 1987 shall be valued pursuant to E.O. 228; and

2.         P.D. 27 landholdings tenanted after 21 October 1972 but not yet issued with Order of Placement and the production data have not yet been generated and submitted to DAR Central Office as of the effectivity of E.O. 229, shall be documented and valued in accordance with E.O. No. 229. This means that these landholdings shall be documented and valued pursuant to R.A. No. 6657 and that Certificates of Land Ownership Award (CLOAs), instead of Emancipation Patents (EPs), shall be issued to the Agrarian Reform Beneficiaries (ARBs). Correspondingly, payment of amortization by the ARBs shall be based on R.A. No. 6657.    EcTIDA

This Circular shall amend any issuance inconsistent with it. Please be guided accordingly.

Diliman, Quezon City, September 23, 2008.

(SGD.) NASSER C. PANGANDAMAN
Secretary