The Philippine legal system accords robust protection to agricultural tenants, particularly those who have cultivated the same parcel for extended periods, often spanning generations. These protections stem from the constitutional mandate under Article XIII, Section 4 of the 1987 Constitution to undertake agrarian reform and promote social justice by providing security of tenure to tenants and ensuring just compensation for their investments in the land. The core statutes are Republic Act No. 3844 (Agricultural Land Reform Code of 1963, as amended by Republic Act No. 6389), Presidential Decree No. 27 (1972), and Republic Act No. 6657 (Comprehensive Agrarian Reform Law of 1988, as amended by Republic Act No. 9700). These laws establish leasehold tenancy as the prevailing system, abolish share tenancy, and integrate long-term tenants into the broader agrarian reform program.
I. Definition and Scope of Agricultural Tenancy
An agricultural tenant is a natural person who, personally or with the aid of his immediate farm household, cultivates an agricultural land owned or possessed by another for a fixed consideration in money, produce, or both. The relationship arises from the consensual physical possession and cultivation of the land devoted to agriculture, regardless of the form of agreement. Long-term tenancy is not separately defined but is recognized through continuous, uninterrupted possession and cultivation, which strengthens security of tenure and may trigger presumptions of leasehold status under Department of Agrarian Reform (DAR) regulations.
Agricultural tenancy is distinguished from farm labor: tenants enjoy security of tenure and fixed rights; farm laborers receive wages and are governed by the Labor Code. Tenancy covers private agricultural lands devoted to crops, livestock, poultry, or fisheries, but excludes residential lots, commercial farms exceeding certain sizes, and lands already covered by emancipation patents or certificates of land ownership award (CLOAs).
II. Evolution from Share Tenancy to Leasehold System
Republic Act No. 3844 abolished share tenancy effective 1971 and mandated its automatic conversion to leasehold tenancy. Under leasehold, the tenant pays a fixed annual rental not exceeding 25% of the average gross harvest during the three preceding crop years (Section 34, RA 3844, as amended). The rental is payable in cash or kind, determined once and remains fixed unless the tenant voluntarily improves productivity or the parties mutually agree to revision. Long-term tenants who were share tenants prior to 1971 are deemed leasehold tenants from the date of conversion, entitling them to all leasehold protections retroactively.
Presidential Decree No. 27 (Operation Land Transfer) applied to rice and corn lands, declaring tenant-farmers as owners of the land they till, subject to amortization payments. Long-term rice and corn tenants on lands below seven hectares received emancipation patents, transferring ownership directly.
Republic Act No. 6657 expanded coverage to all agricultural lands, making tenant-farmers qualified agrarian reform beneficiaries (ARBs) regardless of crop. Long-term tenants acquire priority in land distribution up to five hectares per family, with the government acquiring the land from the owner and distributing it to the tenant.
III. Fundamental Rights of Long-Term Tenants
A. Security of Tenure (Section 7, RA 3844)
No tenant may be dispossessed of the land except upon court order or DAR adjudication and only for causes expressly enumerated by law. These include:
- Failure to pay the agreed rental for two consecutive years without justification;
- Use of the land for purposes other than agriculture without the lessor’s consent;
- Serious and intentional damage to the land or failure to cultivate it for two consecutive years;
- Conviction of a crime against the lessor or the latter’s family;
- Voluntary surrender of the land; or
- Death or permanent incapacity of the tenant without qualified heirs willing to continue cultivation.
Security of tenure is imprescriptible and survives transfer of ownership. Long-term possession creates a strong presumption against abandonment. The tenant may cultivate personally or through immediate family members but cannot sub-lease without consent.
B. Right to a Home Lot (Section 10, RA 3844)
The tenant is entitled to a reasonable area, not exceeding 1,000 square meters, within the land for a dwelling house, free of rental.
C. Right of Pre-emption and Redemption (Sections 11 and 12, RA 3844)
If the landowner offers the land for sale, the tenant has the right of pre-emption at the same price and terms. If sold to a third person without prior written notice to the tenant, the tenant may redeem the land within 180 days from notice or actual knowledge, paying the reasonable price. These rights are particularly valuable for long-term tenants who have invested decades in the land.
D. Right to Work the Land and Family Labor
The tenant has the exclusive right to work the land and may employ immediate family members without additional rental.
E. Rights under Agrarian Reform Laws
Long-term tenants are preferred beneficiaries under RA 6657. Upon land acquisition and distribution (LAD), they receive CLOAs or emancipation patents, becoming amortizing owners. Republic Act No. 11953 (New Agrarian Emancipation Act of 2023) condones all unpaid amortizations, interests, and penalties of ARBs, effectively granting full ownership to qualified long-term tenants who have been issued titles or patents.
IV. Compensation Entitlements
A. Compensation for Improvements (Section 34, RA 3844)
The tenant is entitled to full indemnity for all useful and reasonable improvements made on the land with the landowner’s consent. Improvements include irrigation works, drainage, roads, buildings, fences, and permanent plantings (e.g., fruit trees, coconut, or rubber).
At termination of tenancy:
- The landowner may appropriate the improvements and pay their current market value; or
- The tenant may remove the improvements provided no substantial damage is caused to the land.
If consent was not obtained but the improvements are necessary and the landowner benefits, courts may still award reasonable compensation under principles of unjust enrichment. Long-term tenants frequently plant perennial crops; the value of standing crops and unexhausted improvements is assessed at harvest time or termination.
B. Disturbance Compensation
When tenancy ends without just cause or upon conversion of the land to non-agricultural use (Section 65, RA 6657 and DAR rules), the tenant receives disturbance compensation. The minimum standard recognized in jurisprudence and DAR practice is equivalent to the value of one year’s gross harvest. In conversion cases, DAR Administrative Orders require proof of payment of disturbance compensation, typically negotiated but not less than five times the average annual gross production in the preceding five years, plus relocation assistance and disturbance fees for structures.
C. Compensation for Standing Crops and Fruits
The tenant owns all fruits and crops at the time of termination and may harvest them. If prevented, the tenant recovers their value plus damages.
D. Compensation upon Government Acquisition under CARP
When the State acquires the land for distribution, the landowner receives just compensation determined by the formula in RA 6657 (cash, bonds, and other modes). The tenant does not receive direct cash from the State but gains ownership through the LAD process. Long-term tenants who have already paid amortizations benefit from RA 11953’s full condonation, receiving clear title without further payment.
E. Damages and Other Monetary Awards
In illegal ejectment cases, tenants may recover moral and exemplary damages, attorney’s fees, and litigation expenses. Overpaid rentals must be refunded with legal interest.
V. Obligations of Long-Term Tenants
Rights are balanced by obligations: timely payment of rental, proper cultivation, non-sub-leasing without consent, maintenance of the land, and notification of improvements. Failure to observe these may constitute just cause for termination.
VI. Procedural Remedies and Enforcement
Ejectment, determination of rental, and compensation claims are filed with the DAR Adjudication Board (DARAB) under quasi-judicial jurisdiction (Section 50, RA 6657). Appeals lie to the Court of Appeals and Supreme Court. Long-term tenants enjoy liberal construction of laws in their favor. The DAR Secretary may issue cease-and-desist orders to prevent illegal dispossession.
Penal sanctions under RA 3844 and RA 6657 include imprisonment and fines for landowners who harass tenants, use force, or circumvent reform laws.
VII. Special Considerations for Long-Term Tenants
Continuous possession for decades creates evidentiary advantages: presumptions of leasehold existence, waiver of rental increases, and estoppel against denial of tenancy. In public lands, long-term cultivation may support applications for free patent under Commonwealth Act No. 141, but private lands remain under tenancy protections.
Intergenerational succession is recognized; qualified heirs (spouse, children) may continue the tenancy upon the tenant’s death or incapacity.
Conclusion
Philippine law treats long-term agricultural tenants as stewards whose rights and compensation claims are sacrosanct instruments of social justice. Security of tenure, pre-emption, redemption, and comprehensive compensation for improvements and disturbance collectively shield them from exploitation while advancing equitable land ownership under the agrarian reform program. These protections remain in full force, reinforced by emancipation measures that eliminate debt burdens and affirm ownership for those who have tilled the soil for generations.