July 5, 1995

DAR OPINION NO. 30-95

Democrito A. Jadol

Chairman

Bacuag Industries Dev. Corporation

8408 Bacuag, Surigao del Norte

Dear Mr. Jadol:

This has reference to your query as to how much cocolands may be acquired by a corporation to be used as the  site of a coconut processing plant.

Under Sections 6 and 73(a) of R.A. 6657 (Comprehensive Agrarian Reform Law or CARL) no person, natural or juridical, may own more than five hectares of agricultural lands. This means that a corporation may acquire only such area of agricultural lands that would complete the five-hectare landownership ceiling allowed under CARL. For example, a corporation that owns three (3) hectares of agricultural lands may only acquire an additional two hectares.

As regards the use of the cocoland as the site of a coconut processing plant, the same would mean a conversion in land use, hence the same can be legally done only if there is a DAR Order approving said conversion.

We hope to have clarified matters with you.

Very truly yours,

(SGD.) HECTOR D. SOLIMAN
Assistant Secretary Legal Affairs Office