By Ellalyn De Vera-Ruiz
The Department of Agrarian Reform (DAR) has issued an administrative order that provides clearer guidelines to estimate the value of lands awarded to farmer-beneficiaries.
Under DAR Administrative Order No. 4, Series of 2019, the department outlines the procedures in the generation of Land Distribution and Information Schedule (LDIS), which form part of the prerequisites of the land valuation process.
The LDIS reflects data for the computation of the amortization that agrarian reform beneficiaries (ARB) should pay the government.
The new AO sets clear definitions and procedures for filing, monitoring and reporting of this vital information.
Compensable lands awarded by the government shall be paid by the ARBs over a certain period of time as per Republic Act (RA) 6657, as amended, Presidential Decree No. 27, RA 3844, as amended by RA 6389.
Meanwhile, Section 26 of RA 6657, as amended, provides that “lands awarded pursuant to this act shall be paid for by the beneficiaries to the Land Bank of the Philippines (LBP) in 30 annual amortizations at 6 percent interest per annum.”
In addition, RA 6657 says that the LBP shall have a right to keep possession of the awarded lots until the debt is paid by way of mortgage on the land.
The mortgage shall be foreclosed by LBP for non-payment of an aggregate of three annual amortizations.