November 4, 2004
DAR ADMINISTRATIVE ORDER NO. 02-04
SUBJECT : Amendment to Administrative Order No. 13, Series of 1994 Entitled "Rules and Regulations Governing the Grant of Increment of Six Percent (6%) Yearly Interest Compounded Annually on Lands Covered by Presidential Decree (P.D.) No. 27 and Executive Order (E.O.) No. 228"
DAR Administrative Order No. 13, Series of 1994, was issued pursuant to Presidential Agrarian Reform Council (PARC) Resolution No. 94-24-1 which approved the grant of an increment of six percent (6%) yearly interest compounded annually based on the land value as determined under the existing valuation formula. The increment enhanced the valuation of rice and corn lands covered under PD 27 and EO 228.
As provided for in AO 13, Series of 1994, the grant of the six (6) percent increment is up to November 1994 only. However, a number of landowners have not yet been paid of their lands beyond this effectivity date. In this regard, the prescribed period of computing the six percent annual interest compounded yearly is being extended from November 1994 up to the time of actual payment. EDATSC
Item III, No. 03 of A.O. No. 13, Series of 1994, is hereby amended to read as follows:
The grant of six percent (6%) yearly interest compounded annually shall be reckoned as follows:
3.1 Tenanted as of 21 October 1972 and covered under OLT
- From 21 October 1972 up to the time of actual payment but not later than December 2006
3.2 Tenanted after 21 October 1972 and covered under OLT
- From the date when the land was actually tenanted (by virtue of Regional Order of Placement issued prior to August 18, 1987) up to the time of actual payment but not later than December 2006
Time of Actual Payment — is the date when the Land Bank of the Philippines (LBP) approves the payment of the land transfer claim and deposits the compensation proceeds in the name of the landowner (LO) in cash and in bonds. The release of the payment can be claimed by the landowner upon compliance with the documentary requirements for release of payment. TcSaHC
III. Increment Formula
The following formula shall apply:
For palay : LV = (2.5 x AGP x P35) x (1.06)n
For corn : LV = (2.5 x AGP x P31) x (1.06)n
LV = land value
AGP = Average Gross Production in cavan of 50 kilos in accordance with DAR Memorandum Circular No. 26, Series of 1973
P35 = Government Support Price for palay in 1972 Pursuant to Executive Order No. 228
P31 = Government Support Price for corn in 1972 Pursuant to Executive Order No. 228
n = number of years from date of tenancy up to the time of actual payment
This order shall take effect ten (10) days after its publication in two (2) newspapers of general circulation pursuant to Section 49 of R.A. 6657. ADCEcI
Diliman, Quezon City, November 4, 2004.
(SGD.) RENE C. VILLA
Department of Agrarian Reform
Published in The Manila Bulletin and The Philippine Star on November 24, 2004.