October 16, 1995

DAR OPINION NO. 60-95

Director Rogelio E. Tamin

DAR Region X

Macanhan, Carmen

Cagayan de Oro City

Dear Director Tamin:

This has reference to the Resolution of LADAMA Multi-Purpose Cooperative, requesting the issuance of a DAR Clearance for the registration of the donation in its favor of a 1.9535-ha. farmlot covered by an Emancipation Patent in the name of Joel Fundalan.

You state that the proposed use of the farmlot is a piggery project to be financed by the Land Bank of the Philippines; that the LBP is willing to finance the project, subject to the transfer of the title in the name of the transferee; that no DAR clearance can be issued, in view of DAR Memorandum Circular No. 4, Series of 1995 which suspends the issuance of clearances relative to the transfer of awarded lands pursuant to P.D. 27, as amended; that the Cooperative is praying for a reconsideration of said Circular, in order to facilitate the transfer of the title in its name; and that you favorably recommend approval of said request.

It is noted that the farmlot is proposed to be used as the site of a piggery project, hence, for livestock production, which is a non-agricultural activity, as held by the Supreme Court in the case entitled Luz Farms vs. The Hon. Secretary of DAR (G.R. No. 86889, 4 December 1990). Such being the case, a determination must be made on whether the transfer is in conformity with pertinent agrarian laws, rules and regulations. Said determination shall be based on the DAR guidelines on the transferability of awarded lands which shall be issued shortly. It follows that pending the issuance of the appropriate implementing guidelines, no DAR clearance can be issued for the registration of the donation. Moreover, the use of the farmlot for the piggery project must be covered by a DAR Order of Conversion for the change in land use to be considered legal.

Please be guided accordingly.

Very truly yours,

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

Copy furnished:

PARO Antonio Menor

Department of Agrarian Reform

J. Rosales Avenue, Butuan City

Pastor Alfonso G. Noynay

Chairman — LADAMA-MPC

Los Angeles, Butuan City

OSEC

Doc. No. 95080768