The one-year moratorium on the payment of land amortization and interests for agrarian reform beneficiaries (ARBs) will now take effect following the signing last Wednesday of its implementing rules and regulations (IRR).
Department of Agrarian Reform Secretary Conrado Estrella III and Land Bank of the Philippines president and chief executive officer Cecilia Borromeo signed the joint administrative order providing the IRR for Executive Order (EO) No. 4 Series of 2022.
The EO was signed by the President last September 13 and calls for a one-year moratorium on loan payments of ARBs who received agricultural land under the Comprehensive Agrarian Reform Program (CARP).
The IRR said the one-year moratorium covers the payment of the principal value and the annual interest due and payable by the ARBs.
It also provides for the identification of beneficiaries qualified to avail of the one-year payment suspension.
Specifically, the IRR included the financial obligation to pay the total cost of the land under Presidential Decree (PD) No. 27, including interest at the rate of 6 percent percent per annum as provided under Section 6 of EO 228; and the financial obligation to pay the principal value including the 6 percent annual interest of the 30-year land amortization of ARBs under Section 26 of Republic Act 6657, as amended.
“The one-year moratorium period will provide the needed time for Congress to pass the law condoning the existing agrarian reform loans for the current ARBs and free land distribution for future beneficiaries,” Estrella said in a statement.
Land Bank serves as the collection agent of the national government for land amortizations from ARBs, pursuant to its mandate as the financial intermediary of the CARP. All collections are then remitted to the Bureau of the Treasury.
Meanwhile, the Kilusang Magbubukid ng Pilipinas (KMP), expressed support to House Bill (HB) 5206 which seeks to write off all land amortization payments.
“Given the current situation, it is essential to legislate a law that will entirely dismiss land amortization that have become a lifetime burden to farmers and agrarian reform beneficiaries. The Martial Law-era PD 27 of Marcos Sr. pursued a market-assisted land reform program, compelling farmers to pay for the land that they have been tilling for decades,” said Rafael Mariano, KMP chairman, in a statement.
The proposed HB 5206 also seeks the restoration to farmer-beneficiaries lands under canceled certificates of land ownership awards, certificate of land transfers and emancipation patents or with pending cancellation proceedings due to non-payment.
It also seeks the issuance of title of full emancipation and the provision of support services.
Mariano said the proposed legislation will pave the way for a “genuine agrarian reform program” as previous programs only made the government take over the roles of landlords in collecting land fees from farmers.
