Department of Agrarian Reform

SUBJECT    :     Guidelines In The Classification Of Existing And To Be Launched ARCs Pursuant
                           To The Sustainable Rural Development Framework For Agrarian Reform
                           Communities

I. Background and Rationale:

In 1993, the Department of Agrarian Reform adopted the Agrarian Reform Community (ARC) Development Program as a key operating strategy in the provision of comprehensive development interventions on land tenure improvement (LTI) and program beneficiaries development (PBD). Correspondingly, the Agricultural and Fisheries Modernization Act (R.A. No. 8435) recognizes the ARCs as one of the model farms in the Strategic Agriculture and Fishery Development Zone (SAFDZ). 1

Under the Estrada Administration, agrarian reform agenda is grounded on three equally important principles with respect to the rural sector: economic development, social justice, and political democratization. Consistent with these three distinct but related principles, the implementation of the ARC Development Program was enhanced and expanded to contribute to the achievement of food security, poverty reduction, and countryside development. HEIcDT

Relative to this, Memorandum Circular No. 05, series of 1999, "A Sustainable Rural Development Framework for Agrarian Reform Communities" was issued on 23 March 1999. This Memorandum Circular provides the expanded concept of ARC: scale implementation taking into consideration economic, ecological and socio-political factors; focused on marginalized sector; and gender sensitive and integrated area development perspective. The ARC expanded framework's operationalization requires the widening of area coverage by clustering and/or expanding existing ARCs to include other ARBs in contiguous land reformed barangays and launching of new ARCs. DAEaTS

Likewise, Memorandum Circular No. 14, series of 1999 (Guidelines and Procedures in the Selection and Launching of ARCs) provides that aside from the MUST and WANT criteria stipulated in the Operations Manual on ARC Development, ARC selection shall also take into consideration the economic, ecological and socio-political factors.

As of December 1999, there are 1,031 ARCs launched nationwide. The need to classify the existing ARCs and the new ARCs to be launched up to year 2002 as provided for in MC 05 and 14 series of 1999 are the bases of this guidelines on ARC classification.

II. Objectives:

1. Outline the procedure to be undertaken by the field offices on the classification of existing and new ARCs to be launched;

2. Present the classification tools to be used in the process of classifying existing and new ARCs; and

3. Define the report requirements to be submitted for ARC classification.

III. Methodology:

A. Pre-Classification Activities for Existing ARCs

1. Using existing municipal and provincial maps, assess the spatial relationship of existing ARCs in terms of their potential as agricultural growth centers in line with the Agrarian Reform and Rural Development Thrust of the Department and supportive of the Agriculture and Fisheries Modernization Act.

2. Identify the adjacent land reformed barangays that may be integrated into the existing ARC.

3. Using Annex A (Barangay Profile Format), the Development Facilitator (DF) shall prepare the barangay profile of new barangays, update the barangay profile of existing barangays and reflect in the location map the new barangays to be included. The basic information in accomplishing the barangay profiles shall be gathered from secondary data of government organizations, non-government organizations, peoples' organizations, other institutions and key informants.

4. Prepare the ARC Pre-Classification Matrix (Annex B) utilizing the information from the profiles of existing and new barangays.

5. With the aid of the ARC Pre-Classification Matrix, determine whether the existing ARC satisfies the scale consideration consistent with M.C. No. 5 and 14, series of 1999. If the existing ARC satisfies the scale consideration, there is no need to cluster and/or expand said ARC. However, if the economic, ecological and socio-political factors for scale implementation were not considered when the ARCs were launched, some ARCs may need to be clustered and/or expanded by covering adjacent land reformed barangays.

The ARC category can be determined by analyzing the information/data in relation to the indicators in each parameter. The ARC shall be categorized into either of the following:

5.1 An ARC shall fall in the "ARC as is" category when —

• the economic, ecological, socio-political factors for scale implementation have been fully satisfied when launched

• has no adjoining ARC for clustering

• has no adjacent land reformed barangay/s for expansion

• is a plantation, settlement area or landed estate

5.2 An ARC shall fall under the "ARC Cluster" category if two or more ARCs in a given geographic area show that:

• there are similar geo-physical characteristics and crops produced

• ARCs can complement their production, processing and marketing activities

• there are physical infrastructure facilities that will link and support the production, processing and marketing activities of the ARCs

5.3 An ARC shall fall in the "ARC Expansion" category if there are land reformed barangays that can be added as its expansion area. Such barangays should have:

• similar geo-physical characteristics and crops produced with that of the existing ARCs

• can complement the production, processing and marketing activities of the ARC

• presence of physical infrastructure activities that would link and support production, processing and marketing activities of the barangays to the ARC

• the adjacent barangays qualify under the "must and want" criteria in the selection of ARC.

5.4 An ARC shall fall under the "ARC Expansion and Cluster" category if the conditions in items 5.2 and 5.3 above are satisfied.

6. The result of the ARC category shall be indicated in Annex-C (the list of pre-classified ARCs). HcSaTI

B. Classification Procedures

All ARCs categorized as reflected in Annex-C shall be subjected to the ARC Classification process utilizing standard instruments/forms. ECaScD

1. Standard Instruments/Forms

The following instruments/forms shall be used for ARC classification:

1.1 Annex D (ARC Model Description) 2 describes the characteristics of the ARC model in terms of ecological, economic and socio-political considerations to ensure scale implementation of the ARC.

1.2 Annex E (Standards for the Classification of ARCs) describes the characteristics of the different ARC models (prime, semi-prime and satellite ARCs). It defines the standards per model per parameter and its corresponding indicators in terms of economic potentials, socio-political and ecological considerations. This shall serve as the guide in accomplishing the ARC Classification Matrix (Annex G). The standard indicators of the respective ARC Classification are presented per parameter. The classification of ARCs shall be subjected to a total of 22 indicators.

1.3 Annex F (Definition of Standard Indicators for ARC Classification) defines the standard indicators and the qualifying index of each parameter.

1.4 Annex G {ARC Classification Matrix), particularly column 2 will contain the basic information per ARC (as reflected in Annex-B) categorized as ARCs as is, ARC Cluster, ARC Expansion, ARC Cluster and Expansion. The basic information on ARC parameters and indicators on economic potentials, socio-political and ecological considerations shall be analyzed to determine its classification as an ARC. Annexes D, E and F shall be used to facilitate the classification process of each ARC.

1.5 Annex H (List of Classified ARCs) — this contains the final list of ARCs per model after undergoing the ARC Classification process.

The process flow on ARC Classification is presented in Annex I.

2. Determination of the ARC Classification

2.1. The ARC classification process shall be done at the MARO level by the DF and MARO using Annex G, specifically Column 2 which was previously accomplished generating the information from Annexes A and B.

2.2 The ARC Classification Matrix-Column 3 of Annex G shall be accomplished by checking the appropriate column that best characterizes the ARC using the standard set forth in Annexes E and F.

2.3 All ARCs to be classified (both existing and those to be launched) shall be subjected to Economic, Socio-Political and Ecological parameters involving a total of 22 indicators. aDcHIC

Parameters No. of Indicators

1. Economic considerations 10

2. Socio-Political considerations 7

3. Ecological considerations 5

Total 22

2.4 Count the number of check marks per parameter under the ARC Classification Column 3 in Annex G per model (prime, semi-prime and satellite).

2.5 Compute the percentage (%) rating per parameter by dividing the number of check marks with the total number of indicators per parameter. To get the overall percentage rating of the ARC, add the total number of check marks of the three parameters and divide it by the total number of indicators.

Formula:

1. No. of points per Parameter

% Pn = ————————————— x 100

No. of indicators per Parameter

2. Peco + Psoc + Pecol

% Pt = ————————————— x 100

Total no. of indicators

Where:

% Pn = percentage rating of the following parameters:

Peco = point score for economic parameter

Psoc = point score for socio-political parameter

Pecol = point score for ecological parameter

% Pt = total percentage rating for the ARC

2.6 Interpretation of the rating

2.6.1 Using the table below, plot the results of the computation per ARC to determine the ARC classification. (Actual results of the pilot testing were used to demonstrate the utilization of the table). LLpr

Named ARC: TAGUMPAY ARC

Prime Semi-Prime Satellite Total

Parameter Check % Check % Check % Check %

1. Economic 3 30 5 50 2 20 10 100

considerations

2. Socio-Political 2 28 3 43 2 28 7 100

considerations

3. Ecological 2 40 1 20 2 40 5 100

Considerations

Total 7 32 9 41 6 27 22 100

2.6.2 The highest number of points or its equivalent percentage shall be the basis in determining the classification of ARCs.

2.6.3 Each classification (Prime, semi-prime and satellite) shall further be categorized into the following:

• High (Prime, Semi-prime, satellite) if the percentage of the total score (Pt) is above 75%

• Medium (Prime, semi-prime, satellite) if the percentage of the total score (Pt) is 50% to 75%

• Low (Prime, semi-prime, satellite) if the percentage of the total score (Pt) is below 50%

2.6.4 Summarize the result of the ARC classification process using the "List of Classified ARCs" (Annex H).

C. Preparation and Transmittal of Report

1. Preparation and submission of ARC Classification Report

The MARO shall prepare and submit the ARC Classification Report for review and evaluation by the Provincial ARC Task Force (PARCTF). The report should contain the following information: cTaDHS

a. Covering/Transmittal Memorandum

b. Barangay Profiles of existing and new barangays (Annex A)

c. ARC Pre-Classification Matrix (Annex B)

d. List of Pre-Classified ARCs (Annex C)

e. ARC Classification Matrix (Annex G)

f. Location with Vicinity Map of the ARC

The MARO is required to submit the report in two legible copies to the PARCTF. Additional copies may be required by the PARCTF, as necessary.

2. Review, Evaluation and Approval

Immediately upon receipt of the ARC Classification Report at the DARPO, the PARCTF shall:

a) Determine the completeness of the documents based on the standard minimum requirements set forth in the ARC Classification Report.

b) Review the report within five days upon receipt for its completeness, and accuracy of information.

c) Prepare the consolidated Provincial ARC Classification Report for endorsement and approval by the Regional ARC Task Force (RARCTF).

Within five days upon receipt of the Provincial ARC Classification Report the RARCTF shall:

a) Evaluate the document and approve or disapprove the ARC classification.

b) Prepare and submit to the National ARC Task Force (NARCTF) a consolidated report on the approved ARC Classification.

When all pertinent documents and endorsements have been obtained at the DARCO, the NARCTF shall:

a) Conduct final review, evaluate the recommendations and confirm the approval of classified ARCs.

b) Disseminate the necessary information to all concerned units of the DAR and other CARP implementing agencies.

D. Time Frame of Implementation

Upon issuance of this Memorandum Circular, initial activities relative thereto shall immediately proceed as follows:

1. Conduct of Orientation on ARC classification by the Regional ARC Task Force to the DFs, MAROs, and Provincial ARC Task Forces.

2. Classify existing ARCs and submit the Regional ARC Classification Report not later than 31 March 2000.

3. Classify all ARCs to be launched from CY 2000-2002 and submit the corresponding Regional ARC Classification Report on or before 31 March of each year until CY 2002.

IV. Effectivity: cEISAD

This Memorandum Circular shall take effect immediately and supersedes all orders and issuances inconsistent thereof.

Diliman, Quezon City February 1, 2000

(SGD.) HORACIO R. MORALES JR.

Secretary

Footnotes

1. The SAFDZ is the designated food basket of the country and shall serve as the integrating framework for the planning and allocation of national financial and economic resources and priority investments for the implementation of convergence Programs for national food security and poverty alleviation.

2. The ARC models as stipulated in MC Nos. 05 and 14, series of 1999 as prime agricultural ARC, in-between ARC and inaccessible ARC are renamed as prime agricultural ARC, semi-prime agricultural ARC and satellite ARC.

ANNEX A

BARANGAY PROFILE

Barangay ____________________________________________________________

Municipality __________________________________________________________

Province _____________________________________________________________

I. General Features

A. Topography of the Area

B. Location

1. Total Land Area (has.) ________________________________

2. No. of Sitio/Puroks _________________________________

3. Distance from Poblacion _______________________________

4. Existing Means of Transportation ________________________

5. Cost of transportation to and from barangay ________________

C. Demography

1. Population in CY ____________________________________

2. Estimated No. of Households ___________________________

D. Social Services and Infrastructure

1. Type of Roads ______________________________________

2. Condition of Roads ___________________________________

3. Health Station _______________________________________

4. Secondary School ____________________________________

5. Water System _______________________________________

6. Electricity __________________________________________

7. Others (Specify) _____________________________________

E. Natural Resources

1. ——————————————————————

2. ——————————————————————

II. Land Use

A.	Land Use of the Area	Phase I
	1. Agricultural lands _________________	Settlements ___________________
		Landed Estates _________________
	Crop Lands ______________________	OLT Area _____________________
	Lowland	Idle and Abandoned Lands _________
	Upland ________________________	VOS/VLT _____________________
	Pasture Land _____________________	GFI Foreclosed Lands ____________
	Others (specify) ___________________	PCGG Acquired Lands ___________
	Total ______________________________	Govt. Owned Lands ______________
		ISF __________________________

	2. Non-Agricultural	Phase II
	Residential Land __________________	A & D Public Agricultural Lands
	Commercial ______________________	PAL > 50 Has. _________________
	Industrial ________________________
	Others (Specify) __________________

	3. Others (Specify) ___________________	Phase III
	Rivers and Roads __________________	PAL > 24-50 has. _______________
		PAL < 50 has. __________________
		Non-Land Transfer
		Program _________________
		_________________________

B.	Land Category	Leasehold ____________________
	Total Agricultural Land
	____________________________
	Total CARPable Area
	(by Phase) _________________________	Exclude those already under
		VOS/VLT
		CLOA Distributed

III Agriculture

1. Production

a. Main Agricultural Crops

b. Other Crops Cultivated

2. Barangay Map

A rough sketch of the barangay, i.e., without using a scale system. It would show relevant information of the barangay. Among others, it should indicate:

1. Boundaries of the barangay

2. Landmarks (location of community's facilities, etc.)

3. Land type

4. Farmlots

5. Location of ARBs

IV. Support Services Required

(Physical Infrastructure Facilities, IGP, etc.)

ANNEX D

DESCRIPTION OF ARC MODELS

Model		Ecological		Economic		Socio political
		considerations		considerations		considerations

Prime Agricultural	—	One to two	—	Potential to	—	A cluster of
		ecological zones		become key		more than 5
				production		contiguous
				center for		barangays
				various crops	—	Huge tracts of
			—	Volume of		agricultural
				production and		lands (more than
				land utilization		1,500 (hectares)
				rate can support	—	Significant
				the market		number of small
				demands		farmers/agricul-
			—	Potential to		tural workers
				project high		(more than 800
				agro-industrial		ARBs)
				development &
				integrated agri-
				business system
			—	Presence of
				critical
				infrastructure
				facilities
				(irrigation,
				roads, post
				harvest
				facilities)

Semi-Prime	—	One to two	—	Scale of	—	A cluster of 2 to
Agricultural ARCs		ecological zones		production		5 contiguous
				cannot meet the		barangays
				market demands	—	Substantial
			—	Lands are not		tracts of
				fully utilized		agricultural
			—	Can be a		lands (700 to
				production		less than 1,500
				support to prime		hectares)
				agricultural	—	Substantial
				ARCs		number of
			—	Can be a mid-		farmers and
				processing and		agricultural
				market-link of		workers (400 to
				the satellite		less than 800
				ARCs		ARBs)
			—	Presence of
				limited
				infrastructure
				facilities

Satellite	—	One ecological	—	Low soil fertility	—	A minimum of
		zone	—	Low production,		2-5 barangays
				subsistence	—	Limited
				agriculture		agricultural
			—	Absence of		lands (less than
				critical physical		700 hectares)
				infrastructure	—	Substantial
				facilities		number of small
						farmers and
						agricultural
						workers (100-
						400 ARBs)

HELP CENTER

CONTACT INFORMATION

Department of Agrarian Reform
Elliptical Road, Diliman
Quezon City, Philippines

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HELP CENTER

CONTACT INFORMATION

Department of Agrarian Reform Elliptical Road, Diliman Quezon City, Philippines

Copyright Information

Department of Agrarian Reform
Elliptical Road, Diliman
Quezon City, Philippines