Research Paper Series No. 2018-03

The Comprehensive Agrarian Reform Program After 30 Years: Accomplishments and Forward Options

Marife M. Ballesteros, Jenica A. Ancheta, and Tatum P. Ramos

Philippine Institute for Development Studies Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas Copyright 2018

Published by Philippine Institute for Development Studies

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ISSN 1908-3297 ISSN 2508-0830 (electronic) RP 11-18-600

Editorial and production team: Sheila V. Siar, Maria Judith L. Sablan, Jane C. Alcantara, and Carla P. San Diego

Table of Contents

List of tables and figures iv List of acronyms vi Abstract ix Background of the study 1 Overview of land refom in the Philippines 3 CARP theory of change: Assumptions, activities, 10 outputs, and outcomes Assessment of CARP implementation and accomplishments 21 Redistributive land reform program (DAR) 21 CARP program of support services 61 CARP impact assessment 73 CARP funds and resource utilization 78 Conclusions and forward options 83 References 87 The Authors 93

iii List of tables and figures Table 1 Initial scope of CARP land acquisition and 22 distribution component by land type and phase, as of 1991 2 CARP land acquisition and distribution 24 accomplishment versus scope, as of December 2016 3 Pearson correlation estimates of CARP coverage 25 4 Distribution of the Comprehensive Agrarian 26 Reform Program area, by mode and by period 5 Ecosystem of agrarian reform beneficiary 30 lands by mode of acquisition 6 Major crops on agrarian reform beneficiary 30 lands by ecosystem and mode of acquisition 7 Inventory of collective Certificate of Land Ownership 32 Award as of January 1, 2016 (in hectares) 8 LBP-compensable CARP area by region 34 9 LBP-compensable CARP area and value 37 by mode of acquisition 10 Average land values by mode and by crop 39 11 National annual palay yield and land compensation values 41 12 Distribution of CARP-compensable landholdings 44 by value and by crop 13 CARP land compensation subsidy by program type 45 as of March 30, 2015 (in PHP million) 14 Loan collection performance of farmer-beneficiaries, 47 as of March 2015 15 Agrarian reform receivable accounts in default 49 by regional agrarian operations centers 16 Distribution of landholdings by nature of the problem 52 17 Distribution of parcels by tenure status based on the 1991 54 and 2002 Census of Agriculture and Forestry 18 Approved stock distribution applications, status report, 56 as of June 2015

iv 19 Agrarian reform beneficiaries within and outside 62 agrarian reform communities by region, as of end of 2016 20 Agrarian reform beneficiary organizations in agrarian 64 reform communities by region, as of end of 2016 21 Production increase of block farms during first year 67 of implementation 22 Agribusiness venture arrangements inventory 68 as of March 4, 2015 23 Area and number of agrarian reform beneficiaries 70 covered under the agribusiness venture arrangement by crop, as of 2015 24 Number and area covered by type of agribusiness venture 71 arrangement in 2015 25 Agrarian reform fund by sources of funds, from July 1987 80 to December 2016 26 CARP agrarian reform fund allotment/Special 81 Allotment Release Order releases (in PHP million), by expense cla