R.A. 8532 Extends DAR Authority to Issue Notices of Coverage Beyond 1998

The Supreme Court has settled a significant question in agrarian reform law: whether the Department of Agrarian Reform (DAR) may still issue Notices of Coverage and Acquisition for private agricultural lands after the original 10-year implementation period under Republic Act No. 6657 (the Comprehensive Agrarian Reform Law or CARL) had lapsed. In Department of Agrarian Reform v. Woodland Agro-Development, Inc. (G.R. No. 188174, June 29, 2015), the Court ruled that Republic Act No. 8532 effectively extended the DAR's authority to acquire and distribute private agricultural lands until 2008, making Notices of Coverage issued after 15 June 1998 valid.

Background of the Case

Woodland Agro-Development, Inc. owned a 10.0680-hectare agricultural parcel in Calinan, Davao City, covered by Transfer Certificate of Title No. T-113207. On 11 December 2003, the DAR issued a Notice of Coverage placing 5.0680 hectares under the CARL, as the property exceeded the five-hectare retention limit under Section 6 of R.A. 6657. The title was subsequently canceled, and Certificates of Land Ownership Award were issued to five farmer beneficiaries in February 2005.

Woodland challenged the DAR's actions before the Regional Trial Court of Davao City, arguing that the agency's authority to issue the Notice of Coverage had expired on 15 June 1998—ten years after the CARL took effect. The RTC sided with Woodland, ruling that R.A. 8532 only amended the CARL's funding provisions and did not extend the period for land acquisition. The DAR elevated the case to the Supreme Court.

The Core Legal Question

The central issue was whether R.A. 8532 authorized the DAR to issue Notices of Coverage and Acquisition after 15 June 1998. Section 5 of R.A. 6657 originally mandated that distribution of all covered lands be completed within ten years from the law's effectivity. Woodland argued that this period was mandatory and that R.A. 8532 merely addressed funding requirements for other CARP components, not the acquisition of private lands.

The Supreme Court's Ruling

The Court rejected Woodland's interpretation, holding that R.A. 8532 extended the DAR's authority to implement the CARP, including the issuance of Notices of Coverage and Acquisition.

The Court anchored its ruling on the constitutional mandate under Article XIII, Section 4 of the 1987 Constitution, which directs the State to undertake an agrarian reform program for the just distribution of agricultural lands. It emphasized that the CARL is a measure of social justice for landless farmers and that the DAR's authority to issue Notices of Coverage is the agency's primary procedural mechanism for realizing the law's objectives.

Crucially, the Court examined the amendment to the funding provision of R.A. 6657. The original provision stated that the initial amount needed to implement the Act for a period of ten years from its approval would be funded from the Agrarian Reform Fund. As amended by R.A. 8532, the funding provision was revised to cover the implementation of the Act through 2008. The Court reasoned that this funding provision refers to the implementation of the CARL in its entirety, not merely its funding source. The reference to the year 2008 unmistakably extended the DAR's authority to acquire and distribute private agricultural lands. The Court also noted that R.A. 9700, enacted in 2009, further extended the CARP until 30 June 2014—a fact that presupposed the prior extension from 1998 to 2008 under R.A. 8532. The Court reasoned that there could have been an extension only if the program sought to be extended had not expired.

Practical Takeaways

• Notices of Coverage issued between 1998 and 2008 are valid. Landowners cannot challenge the DAR's acquisition authority solely on the ground that the original 10-year CARP period had expired.
• Funding provisions can have substantive effect. An amendment to a law's funding section may extend the very authority to implement the program, not just its budgetary allocations.
• The constitutional mandate prevails. Courts will interpret agrarian reform laws liberally to fulfill the constitutional directive of achieving land distribution and social justice.
• Retention limits still apply. Landowners may retain up to five hectares, plus three hectares for each qualified child, but excess areas remain subject to coverage.
• Subsequent extensions confirmed the trend. R.A. 9700 extended the CARP until 30 June 2014, demonstrating a continuing legislative commitment to agrarian reform.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.