Land use conversion in the Philippines is a prevalent and increasingly significant phenomenon, characterized by transforming agricultural lands into non-agricultural uses such as residential, commercial, or industrial developments. It legally changes a land’s original use into a completely different service impacting agriculture and development. Various factors drive the tendency, including rapid urbanization, economic growth, infrastructure development, and the country’s quest for modernization. While conversion presents potential benefits such as stimulating economic development, generating employment opportunities, and improving infrastructure, it poses significant challenges such as loss of agricultural lands, threats to food security, environmental degradation, and social displacement. This dynamic interplay between the goals and challenges raises several crucial questions about the sustainability of this practice, its impact on rural livelihoods, and its implications for the future of agriculture in the Philippines. In a rapidly developing nation where balancing economic growth and agricultural preservation is critical, unlocking the potential of land use conversion can be a game-changer for landowners and developers alike. Let’s try to demystify the process by providing a starting guide to the procedures, requirements, and challenges associated with land use conversion, empowering stakeholders to make informed decisions that align with the country’s long-term sustainability goals.
What our local laws say About Land Use Conversion In The Philippines
Upon initial examination, converting agricultural land for alternative purposes may appear to be a relatively uncomplicated procedure. However, the stringent provisions set forth by the Department of Agrarian Reform (DAR) underscore the intricacies of land use conversion in the Philippines, the governing body responsible for authorizing and regulating the conversion of agricultural lands to non-agricultural uses. The DAR enforces a comprehensive set of criteria and amendments to the guidelines, ensuring that it can consider only qualified agricultural lands for conversion to strike a balance between the imperatives of economic development and the preservation of agricultural resources, which are vital to the nation’s food security and rural livelihoods. Consequently, the critical role of the DAR accentuates the complexity of land use conversion in the Philippines in safeguarding the interests of multiple stakeholders while navigating the delicate equilibrium between progress and sustainability. However, the Philippines’ authorized agency to approve and disapprove the conversion of agricultural lands into non-agricultural uses has a list of provisions for agricultural lands qualified for conversion.
- Can only be converted five (5) years after the granting of the award
- If the land is no longer economically feasible
- If the land is no longer sound for agricultural uses
- If the locality where it belongs has become too urbanized, the subjected agricultural land would be of more excellent value when converted to commercial, industrial, and residential purposes.
These follow Sections 65 and 49 of the Republic Act No. 6657, amended by Executive No. 129-A, paragraph (13), Section 3, Title XI of E.O. No. 292 or the Revised Administrative Code of the DAR.
Are you qualified to be a landowner of a converted land?
Aside from assessing your subjected agricultural land, the applicant himself should also pass the qualifications advised by DAR. The agency states four requirements for applicants eyeing land use conversion:
- Should be duly authorized by the landowner
- Should be a five-year awardee of the agrarian reform program
- Landowner’s obligations should be fully paid and qualified under the rules.
- If the applicant is a government body (for example, a government agency, a government-owned/-controlled corporation, or a Local Government Unit), it should own the agricultural land as a patrimonial property.
Both Land and Landowner are qualified. What documents should you prepare?
Now that both land and landowner are qualified for land use conversion, the applicant will need to prepare six (6) sets of the following documents organized in a Land Use Conversion Folder (LUCF):
- Official receipt as proof of payment of inspection cost and filing fee
- Either the official receipt as proof of posting or an original copy of the GSIS surety
- Form No. 1 containing a Sworn Application for Land Use Conversion in the Philippines
- True Copy of either the Original Certificate of Title (OCT) or the Transfer Certificate of Title (TCT) of the land subjected to conversion. For untitled lands, the following documents may be accepted in place of an OCT or TCT.
- The Department of Environment and Natural Resources - Community Environment and Natural Resources Officer (DENR-CENRO) should certify the land as alienable and disposable.
- The land should be certified by either the DENR-CENRO or the Clerk of Court that it has undergone a titling process/proceeding and has no adverse claimants.
- True Copy of the Certificate of Title as of June 1988
- True Copy of the current tax declaration
- Project feasibility study
- Joint venture agreement or alternative business arrangement addressing the use of land
- Narrative description of a development plan
- Proof of financial and organizational capability of the developer
- Socio-economic Benefit-Cost Study
- Size 5R (5″ x 7″) photo of the landholding under sunlight
- LUC Form No. 2 – Affidavit of Undertaking
- LUC Form No. 3 – MARO Certification; LUC Form No. 4 – Notice of Land Use Conversion in the English language; LUC Form No. 4A – Notice of Land Use Conversion in the local dialect
- Certification from the Department of Human Settlements and Urban Development (DHSUD) Regional Officer
- Certification from an authorized official of the Department of Agriculture (DA)
- Certification from an authorized official of the DENR
- Environmental Compliance Certificate (ECC) if the land is within an ECP or requires the establishment of an ECP
- A Special Power of Attorney document is required if the applicant is not the registered owner,
- If the applicant is a corporation or cooperative, a notarized secretary’s certificate of a corporate or cooperative board resolution
- If the property is encumbered, a concurrence letter of the mortgagee, individual, or entity in whose favor the encumbrance was awarded.
- If the property involves a priority development area or project, there should be an endorsement from the concerned government agency.
- Land Bank of the Philippines (LBP) Certification, if applicable
- Provincial Agrarian Reform Officer (PARO) Certification, if applicable
- Lot plan and vicinity map
- Directional sketch map
- Map of the development plan
- Topographic map
Displaying Billboards on the Property For Public Notice
The applicant must prominently display a public notice on the subject property using a billboard constructed from durable, weather-resistant materials such as plywood, galvanized iron, tin, panaflex, or other similar materials. The billboard should measure 1.22 meters by 2.44 meters (4 feet by 8 feet). For landholdings exceeding twenty (20) hectares, the applicant must erect one (1) billboard per every twenty (20) hectares strategically placed at visible locations on the property, preferably adjacent to a road. The billboard should be written in the local dialect and contain the following information:
- A declaration that the applicant intends to convert the landholding from agricultural to non-agricultural use;
- Full names of the landowner(s), applicant(s), and developer(s);
- The total area and precise location of the proposed conversion;
- Submission date of the conversion application;
- Date of billboard posting;
- Schedule for ocular inspection;
- Deadline for submitting protests;
- Contact information for the CLUPPI, RCLUPPI, and PARO, where opponents may formally file their protests;
- Address of the approving authority; and
- The application’s date of approval or rejection should initially be left blank and filled in by the applicant upon receiving the decision.
How will the Land Use Conversion process take place?
Assuming that the required documentation has been duly compiled and prepared for submission to the relevant local government unit (LGU), such as the city or municipal hall, it is essential to familiarize oneself with the systematic procedure involved in obtaining the appropriate Application Form and culminating in the submission of the Clientele Feedback. The following systematic process delineates the critical stages in this endeavor:
- Get the Application Form from the PARO/RCLUPPI Secretariat
- Display the public notice billboard and take photos of it, the land, and its surrounding structures.
- Submit two (2) Land Use Conversion Folders (LUCF) to MARO with Forms No. 1, 3, and 4, titles, sketch maps, and billboard photos.
- Inspect CARP coverage, land status, billboard, presence of farmers, and post notices; prepare a MARO Certification for the applicant.
- Submit four sets of LUCFs and MARO Certification at the RCLUPPI. The latter then checks its completion using LUC Form A. If complete, the applicant shall pay his assessed fees. If incomplete, the applicant shall be required to submit the missing requirement.
- Pay the filing and inspection fee as well as the post bond.
- Issue the official receipt.
- Provide the scheduled date of the ocular inspection on the public notice billboard; inform the RCLUPPI team of the applicant’s compliance with the requirement.
- For document tracking, the applicant shall submit the documents and the official receipt to the Records Unit.
- Assign the record number and forward it to the Regional Director’s Office.
- Forward the documents to the RCLUPPI Chairperson
- Schedule an Ocular Inspection (OCI) with the Secretariat, submit notices to the RCLUPPI members, PARO, MARO, and other involved groups, then conduct the OCI.
- Deliberation of the resolution from the filing date then submits the recommendation for approval.
- Prepare, sign, and forward the draft Order to the Regional Director’s Office for approval or denial. The latter then reviews, evaluates, and signs the Order.
- Assign the ORD Document control number and stamp the official dry seal.
- Send Copies of the Order to all parties involved along with the Clientele Feedback Form.
- Send back the Clientele Feedback Form to the Regional Office.
How long will the process take?
On average, it takes around 141 days to convert agricultural land into another use fully. In response to its long timeline, the DAR issued an Administrative Order (A.O.) that aims to streamline and simplify the process of land use conversion in the Philippines. Known as the A.O. No. 1, Series of 2019, it amends specific provisions of the A.O. No. 1, Series of 2002. Such amendments include accepting electronic copies of land titles as legitimate documents for specific landholding processes and exclusively accepting complete applications, all for a speedier land use conversion process.
