Not “the biggest distribution in history”

By Albert M. Lagliva  

In Pres. Arroyo’s State of the Nation Address in July 2001, she made the following commitments for the agriculture sector: the distribution of 200,000 hectares of land each year under the Comprehensive Agrarian Reform Program (CARP), the implementation of the Agriculture and Fisheries Modernization Act (AFMA), and the creation of one million new jobs in agriculture and fisheries.

A year hence, let us ask: Were the targets achieved? If so, did these benefit the poor, especially those who live in the rural areas? Has the government’s programs benefited the 40 percent of Filipinos who are engaged in agriculture?

It is imperative that we ask these questions because a modernized agriculture sector is on Pres. Arroyo’s four-point agenda in fighting poverty. We have every right to know how our government performed, especially now that it seems preoccupied with political consolidation rather than with public service. We have every right to demand accountability, now that it has become apparent that it wants to stay longer in power.

CARP: A Disappointment

The Arroyo administration’s target of distributing 200,000 hectares of land per year is broken down as follows: 100,000 hectares of private agricultural lands (PALs) and another 100,000 hectares of public lands. CARP has entered a phase where many commercial farm plantations are up for distribution; it is a contentious phase because of landowner resistance. Monitoring the government’s accomplishment in land acquisition and distribution requires that attention be focused on the distribution of these plantations because of the many farmworkers they employ.

The Department of Agrarian Reform (DAR), which is tasked with the acquisition and distribution of PALs, announced during the 14th anniversary of CARP last June 10 that it has exceeded its target of 100,000 hectares. In its accomplishment report for 2001, DAR said a total of 107,224 hectares was distributed to over 50,000 farmer-beneficiaries. The most number of hectares were distributed in Central Mindanao (15,570 hectares), Eastern Visayas (13,396 hectares), Western Visayas (12,420 hectares) and Southern Mindanao (10,838 hectares). In her speech, Pres. Arroyo extolled DAR’s performance as “the biggest distribution in just a year,” and “the biggest in history.”

While government celebrated, farmers’ groups like the Alyansa ng mga Kilusang Magsasaka (KILOS-SAKA), together with nongovernment organizations (NGOs) and people’s organizations (POs) could only express their utter dismay at the administration’s performance. They pointed out that DAR failed to disclose that of the 107,224 hectares it purportedly distributed, only 69.7 percent or 74,828 hectares of these were PALs. This was way below the SONA target of 100,000 hectares of PALs. The remaining 30.3 percent or 32,396 hectares were government-owned or public lands.

The output of DAR under Secretary Hernani Braganza is, in fact, the lowest in CARP history. Previously, the record had belonged to the Aquino administration, which distributed just 111,665 hectares in 1989. The Estrada administration, on the other hand, did much better by distributing an average of 133,355 hectares per year. The highest record was made during the Ramos administration, when 433,768 hectares were distributed in 1994. “The statement made by Pres. Arroyo that her administration posted the biggest land distribution record under CARP only made her look ridiculous,” said Ernie Lim of the People’s Campaign for Agrarian Reform Network (AR Now!), a coalition of agrarian reform NGOs.

In December 2000, DAR faced a distribution backlog of 1.19 million hectares of PALs. With RA 8532 extending the completion of CARP only up to 2008, DAR needs to distribute some 150,000 hectares of PALs a year. This means that the SONA target of 100,000 hectares of PALs is too low and last year’s achievement of 74,828 hectares of PALs even so.

This year, acquiring some 150,000 hectares of PALs does not look feasible, as the government has only allocated some P1 billion for “initial cash payments” to landowners. The said amount can only cover some 50,000 hectares, each hectare costing an average of P57,000. However, according to the Land Bank of the Philippines (LBP), which conducts the land valuation and facilitates the landowner’s compensation, the average valuation of CARP lands is P120,000 per hectare. This means that the allocated P1 billion will cover less than 50,000 hectares, or else, the government will have to settle for lands that are valued at less than P120,000, which often are unproductive lands.

In terms of the land acquisition schemes employed by DAR in 2001, 20,372 hectares were acquired through the Voluntary Land Transfer/Direct Payment Scheme (VLT/DPS) while 30,033 hectares were acquired through the Voluntary Offer to Sell (VOS) mode. Only 15,472 hectares were acquired through Compulsory Acquisition (CA), which should have been the more desirable option.

Under VLT/DPS, the landowner negotiates with the beneficiaries, while the government assists in the negotiations. This scheme doesn’t cost the government anything, which accounts for its appeal. In the VOS mode, the landowner offers to sell his land to the government; the negotiations strictly involve the landowner and the government. There have been problems encountered with this mode, however, mainly in the land valuation. Often, land valuation is in terms of potential, and not actual use of land, which jacks up the price of land. In the CA scheme, the government valuates and acquires the land, and distributes it to the beneficiaries.

For the farmers, the CA is the most favorable scheme because the government negotiates on their behalf as it places lands under CARP, and as it initiates purchase agreements with owners. Under VLT/DPS, the landowner initiates and practically controls the negotiations with farmer-beneficiaries who are not equipped with negotiation skills. Often, this scheme results in arrangements that are advantageous to the owners. In fact, according to the Audit Management and Investigation Committee of the Presidential Agrarian Reform Council (AMIC-PARC) – a monitoring body under the Office of the President – the VLT/DPS option has resulted in the awarding of lands to non-farmers or non-farmworkers and to the children or relatives of the landowners themselves. Despite this, Secretary Braganza still favors the VLT/DPS over the CA, directing the people at his agency to “seek alternative modes” of land distribution on which the government will not spend anything. The VLT/DPS will save DAR (and the government) from spending on anything, which is why Secretary Braganza has made this mode of land distribution his policy.

In the VOS scheme, the land valuation tends to be higher compared to the CA scheme because landowners usually negotiate and challenge the land valuation of the government. This has often led to additional budgetary allocations from DAR. The distribution of lands is further stalled because disputes in valuation are normally resolved in the courts. What is unfortunate about this, according to Jules Climaco, head of the Strategic Planning Group of the Land Bank, is that in cases where the courts decide in favor of the landowners, the land valuation usually exceeds the bank’s estimates by as much as 600 percent. This was why Land Bank president Margarito Teves was arrested. He disobeyed the Nueva Ecija Provincial Agrarian Reform Adjudicator, refusing to pay P1.4 million per hectare for a piece of land which the Land Bank estimated at only P55,000 per hectare.

After 14 years of implementing CARP, shouldn’t the DAR be strong-willed and muscled by now when it comes to land acquisition and distribution? Yet it is showing that it is puny against big landowners, at times, acceding to their schemes or demands. Secretary Braganza needs to show resolve, yet what is he doing? He focuses on Bayan-Anihan, even asking P100 million for this in the 2003 budget. Bayan-Anihan, which covers land transfer, agrarian justice, formation of farmers’ groups, and support services such as legal support and irrigation, is but a repackaging of DAR services – services that are inherently part of DAR’s mandate.

What DAR needs to do is to accelerate its land acquisition and distribution efforts. But Pres. Arroyo should lead by example, by awarding Hacienda Manolita, owned by her husband’s family, to its 57 farmer-beneficiaries. The hacienda, which is located in Negros Occidental, has been placed under CARP but has remained undistributed until now.

AFMA: Growth Amidst Dangers

The agriculture sector, according to the 2001 annual report of the Department of Agriculture (DA), posted an overall growth of 4.01 percent. Production in all subsectors – crops, livestock, poultry and fisheries – increased, with the poultry sector registering the highest growth at 7.8 percent. The crops sector, meanwhile, posted the lowest growth at 2.58 percent.

The crops subsector, however, accounted for 52.99 percent of the total agricultural production, and rice accounted for 16 percent of the total crops production. Rice production employs around two million farmers. With Pres. Arroyo’s plan to allow the private sector to import rice, farmers are afraid that cheap, imported rice will directly compete with their produce. They receive no support from our lawmakers, who have initiated House Bill 3339 and Senate Bill 1912 or the Rice Safety Nets Act. Rather than protect the interests of Filipino farmers, the proposed law will further allow the entry of imported rice into the country. The “Safety” it refers to is the food security of the whole country, because while the Philippines produces rice, its production is insufficient to meet the daily need of the population.

What farmers and fishermen are asking for are support services that will sustain and enhance their livelihood. Government says it is doing something about this, yet to date, only 17 percent of the entire Philippine road network is paved and only 29 percent of agricultural lands is irrigated. It also needs to act to mitigate the effects of natural phenomena. As it is, around 9,000 hectares of agricultural lands in the Ilocos region were severely affected by a recent drought. With the onset of El Niño, farmers are bracing themselves for more widespread destruction of their crops.

With the priority placed on aquaculture by AFMA, the total volume of fish production increased by 6.05 percent in 2001. Municipal fisherfolk, however, received only minimal support in protecting and preserving their fishing grounds. Presently, according to the Bureau of Fisheries and Aquatic Resources (BFAR), only 26 percent of our mangrove forests are left and only 5 percent of our coral reefs are in good condition. These two are vital in the survival of marine life. It is therefore not surprising that municipal fishing posted only a 2.49 percent growth while aquaculture grew by 10.31 percent.

As for the President’s SONA commitment to generate one million new jobs in agriculture, the DA, based on its annual report, generated some 209,616 new jobs.

While the DA’s performance is notable, it must always bear in mind that among its primary concerns is the improvement of the lives of small farmers and fishermen, who are most affected by globalization. With AFMA, the DA tries to cope with globalization, but it mustn’t be remiss in looking after the interests of farmers and fishermen in this country.

This and other updates are found in the July 2002 issue of the Intersect.  Copies of this issue are still available.

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