Government Pasture Lease Agreement (PLA) Requirements and Process in the Philippines

Introduction

In the Philippines, the management and utilization of public lands, including those suitable for grazing, are governed by a framework of laws aimed at promoting sustainable land use, environmental protection, and equitable access to natural resources. The Government Pasture Lease Agreement (PLA) is a legal instrument that allows qualified individuals, corporations, or associations to lease portions of public forest lands or alienable and disposable lands classified as suitable for pasture or grazing purposes. This lease enables the lessee to use the land for livestock raising, such as cattle, sheep, or goats, while ensuring compliance with ecological safeguards.

The PLA is administered primarily by the Department of Environment and Natural Resources (DENR), which oversees the classification, allocation, and monitoring of public lands. It is distinct from other land tenure instruments like agricultural leases or forest management agreements, focusing specifically on grazing activities. The process emphasizes environmental sustainability, as overuse of pasture lands can lead to soil erosion, deforestation, and biodiversity loss. This article provides a comprehensive overview of the requirements, process, legal basis, terms, and related aspects of securing and maintaining a PLA in the Philippine context.

Legal Basis

The foundation for Pasture Lease Agreements stems from several key Philippine laws and regulations that regulate public land disposition and forest resource management:

Commonwealth Act No. 141 (Public Land Act of 1936): This is the primary law governing the classification and disposition of public lands. Under Section 44, public lands suitable for agriculture, including grazing, may be leased to qualified applicants. Pasture leases fall under this category for alienable and disposable (A&D) lands.
Presidential Decree No. 705 (Revised Forestry Code of the Philippines, 1975): For forest lands, Section 3 allows multiple uses of forest resources, including grazing in open or denuded areas not needed for reforestation. Section 65 specifically authorizes the issuance of grazing permits or leases on forest lands classified as pasture zones. The DENR may reclassify forest lands for grazing if they are not timber-producing or watershed-critical.
Republic Act No. 7586 (National Integrated Protected Areas System Act of 1992, as amended): This law prohibits grazing in protected areas unless part of a management plan for buffer zones. PLAs cannot be issued in strict nature reserves or core zones.
DENR Administrative Orders (DAOs):
- DAO No. 99-36 (Procedural Guidelines in the Processing and Issuance of Special Land Use Permits): Provides procedural details for leases, including pasture.
- DAO No. 2004-59 (Rules and Regulations Governing the Special Uses of Forestlands): Outlines guidelines for pasture leases in forest zones, emphasizing environmental impact assessments.
- DAO No. 2020-18 (Streamlining the Processing of Applications for Land Use and Disposition): Modernizes the application process, incorporating digital submissions.
Other Relevant Laws:
- Republic Act No. 8371 (Indigenous Peoples' Rights Act of 1997): Requires free, prior, and informed consent (FPIC) from indigenous communities if the land overlaps with ancestral domains.
- Republic Act No. 9147 (Wildlife Resources Conservation and Protection Act of 2001): Ensures that grazing does not harm protected wildlife.
- Executive Order No. 23 (2011): Imposes a moratorium on logging in natural forests, indirectly affecting reclassification for pasture.

These laws ensure that PLAs align with national policies on sustainable development, as outlined in the Philippine Constitution (Article XII, Section 2), which mandates the state to protect and advance the right of the people to a balanced ecology.

Eligibility Requirements

To qualify for a PLA, applicants must meet strict criteria to ensure responsible land stewardship:

Citizenship and Legal Status:
- Individual applicants must be Filipino citizens of legal age (at least 18 years old).
- Corporations or associations must be duly registered with the Securities and Exchange Commission (SEC) or Cooperative Development Authority (CDA), with at least 60% Filipino ownership.
- Foreign entities are generally ineligible, except in cases involving bilateral agreements, but this is rare for pasture leases.
Financial and Technical Capability:
- Proof of financial stability, such as bank statements or audited financial reports, to demonstrate ability to develop and maintain the pasture.
- Technical expertise in livestock management, evidenced by resumes, certifications from the Department of Agriculture (DA), or partnerships with agricultural experts.
Land Suitability:
- The applied area must be public land classified as pasture or grazing land by the DENR. Applicants may request reclassification if needed, but this requires a land evaluation survey.
- Maximum lease area: 2,000 hectares per lessee (individual or entity), as per PD 705, to prevent land concentration.
No Adverse Claims:
- The land must be free from existing claims, titles, or occupations. Overlaps with titled properties, mining claims, or protected areas disqualify the application.
- Compliance with IPRA: FPIC certificate if applicable.
Environmental Compliance:
- Commitment to sustainable practices, including rotational grazing, erosion control, and reforestation of denuded areas.
- No history of environmental violations, as verified by DENR records.

Ineligible applicants include those with pending land disputes, convicted of land-related crimes, or holding excessive public land leases.

Application Process

The process for obtaining a PLA is bureaucratic and multi-level, involving DENR offices from local to national levels. It typically takes 6-12 months, depending on completeness of documents and site inspections.

Pre-Application Preparation:
- Conduct a preliminary site survey to confirm land classification. Applicants can request a Land Classification Map from the DENR's Lands Management Bureau (LMB).
- Prepare a Project Development Plan (PDP) outlining grazing activities, livestock types, carrying capacity (e.g., number of animals per hectare), fencing, water sources, and environmental mitigation measures.
Submission of Application:
- File the application at the Community Environment and Natural Resources Office (CENRO) with jurisdiction over the area.
- Required Documents:
  - Accomplished Application Form (DENR Form No. 1 for leases).
  - Proof of identity/citizenship (birth certificate, passport, SEC registration).
  - PDP and feasibility study.
  - Location map and sketch plan (prepared by a licensed geodetic engineer).
  - Environmental Compliance Certificate (ECC) from the DENR's Environmental Management Bureau (EMB), if the area exceeds 1,000 hectares or involves significant impact.
  - FPIC certificate, if applicable.
  - Payment of application fee (approximately PHP 500-1,000) and inspection fee (PHP 50 per hectare).
Processing and Evaluation:
- CENRO conducts an ocular inspection and initial appraisal, verifying land status and suitability.
- Application is endorsed to the Provincial Environment and Natural Resources Office (PENRO) for further review.
- PENRO recommends to the Regional Executive Director (RED), who may approve small leases (under 500 hectares) or endorse larger ones to the DENR Secretary.
- Public notice: The application is posted in conspicuous places and published in a newspaper of general circulation for 15 days to allow protests.
Approval and Issuance:
- Upon approval, the lessee signs the PLA with the DENR Secretary or authorized representative.
- Payment of lease fees: Annual rental (PHP 10-50 per hectare, depending on land quality) plus a performance bond (equivalent to one year's rental).
- Registration with the Registry of Deeds for public notice.
Appeals and Protests:
- Denied applications can be appealed to the DENR Secretary within 15 days.
- Third-party protests are resolved through administrative hearings.

Lease Terms and Conditions

A standard PLA includes:

Duration: 25 years, renewable for another 25 years upon satisfactory compliance.
Rental and Fees: Adjustable based on land appraisal; includes surcharges for late payments.
Use Restrictions: Exclusive for grazing; no subleasing without DENR approval; prohibition on timber cutting or mining.
Development Requirements: Lessee must develop at least 20% of the area within the first year (e.g., fencing, pasture improvement) and fully develop within 5 years.
Environmental Obligations: Maintain vegetative cover, prevent overgrazing (carrying capacity not exceeding 1 animal unit per 2-5 hectares), and submit annual reports on land condition.
Monitoring: DENR conducts periodic inspections; violations lead to warnings or cancellation.

Rights and Obligations of Lessees

Rights:

Exclusive possession and use for grazing.
Right to introduce improvements (e.g., wells, barns) with reimbursement upon lease expiration if not renewed.
Transfer of lease with DENR approval.

Obligations:

Pay rentals and taxes promptly.
Comply with all laws, including labor standards for workers.
Allow DENR access for inspections.
Restore land to original condition upon termination if degraded.

Renewal, Termination, and Penalties

Renewal: Apply 6 months before expiration; requires proof of compliance and updated PDP. Renewal is not automatic and may involve re-appraisal.
Termination: By mutual agreement, expiration, or cancellation due to violations (e.g., non-payment, illegal activities). Lessee forfeits improvements if at fault.
Penalties: Fines (up to PHP 100,000), imprisonment (under PD 705, up to 12 years for illegal occupation), or blacklisting from future DENR permits. Overgrazing leading to environmental damage may trigger civil liabilities under RA 6969 (Toxic Substances Act) or RA 9003 (Ecological Solid Waste Management Act).

Conclusion

The Government Pasture Lease Agreement serves as a vital tool for promoting livestock production on public lands while safeguarding the environment in the Philippines. By adhering to the outlined requirements and process, applicants can secure sustainable access to grazing resources. However, success depends on rigorous compliance, as the DENR prioritizes ecological integrity over economic gains. Prospective lessees are advised to consult DENR regional offices for the latest forms and fees, ensuring alignment with evolving policies amid climate change and land reform initiatives. This framework not only supports rural economies but also contributes to national food security and biodiversity conservation.

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