Court Orders Government to Pay ₱28.48 Billion to Hacienda Luisita

In a landmark ruling, the Court of Appeals (CA) has mandated the Philippine government to compensate Hacienda Luisita Inc. (HLI) with ₱28.48 billion for 4,500 hectares of land redistributed under the Comprehensive Agrarian Reform Program (CARP). This decision overturns a previous valuation of ₱304 million by the Tarlac Regional Trial Court, which the CA deemed insufficient and not in line with Section 17 of the CARP law, emphasizing the need for "real, substantial, full, ample, just and fair" compensation.

The Department of Agrarian Reform (DAR) and the Land Bank of thePhilippines (LBP) were directed to pay the amount as of April 30, 2025, with interest accruing until full payment is made. However, LBP has clarified its non-liability, stating it was removed as a party to the case in 2024 and serves solely as a custodian of public funds.

The DAR has filed a motion for reconsideration, arguing that the CA's valuation did not adequately consider the factors outlined in the CARP law. If denied, the department may elevate the case to the Supreme Court.

This ruling is the latest development in the protracted legal battle over Hacienda Luisita, a sugar estate owned by the Cojuangco family. The Supreme Court had previously ordered the distribution of the land to farmer-beneficiaries in 2012, with compensation to be based on the 1989 land valuation.

As the case continues, it remains a focal point in discussions about land reform and equitable compensation in the Philippines.

• The case revolves around the just compensation owed to HLI for lands distributed to farmers under CARP. 

• The Previous Ruling:

  The Tarlac City Regional Trial Court (acting as a Special Agrarian Court) previously affirmed a valuation of P304 million plus interest, set by Landbank and adopted by DAR. 

• The CA's Decision:

  The CA ruled that this valuation was insufficient and ordered a higher payment based on valuation guidelines outlined in Republic Act 6657, taking into account factors like actual production data and delayed payment. 

• Landbank's Position:

  While Landbank acknowledges the CA's decision, it emphasizes that the ruling is not yet final and that it will comply with any final court directives. 

• DAR's Role:

  DAR has already filed a motion for reconsideration and is awaiting a resolution. If the motion is denied, DAR may elevate the case to the Supreme Court. 

• Significance:

  This decision is significant because it addresses the long-standing issue of land distribution at Hacienda Luisita and the fair compensation owed to the landowner. It also highlights the complexities involved in determining just compensation in agrarian reform cases. 

Benefits of ARBO membership

Agrarian Reform Beneficiaries (ARBs) under Presidential Decree No. 27 or Republic Act No. 6657 (Comprehensive Agrarian Reform Law) are encouraged to join agrarian reform beneficiaries organizations (ARBOs) because doing so provides several benefits that can help improve their farming operations and livelihood. Here’s why they should consider joining:

1. Access to Government Support and Assistance

• Farmers’ organizations often serve as a bridge between ARBs and government agencies like the Department of Agrarian Reform (DAR) and the Department of Agriculture (DA).

• Members may receive subsidized seeds, fertilizers, farming equipment, and training programs.

• The government provides financial assistance, such as soft loans and grants, to organized groups rather than individuals.

2. Collective Bargaining Power

• Farmers’ organizations help members negotiate better prices for their products by reducing middlemen intervention.

• They can advocate for better policies, infrastructure, and support services from the government and private sector.

3. Easier Access to Credit and Financing

• Many banks and lending institutions prefer lending to cooperatives or farmers’ organizations rather than individual farmers.

• Membership can help ARBs secure loans with lower interest rates for farm inputs and machinery.

4. Market Access and Stability

• Organizations can help members find buyers and negotiate better contracts, ensuring fair prices and reducing exploitation.

• Some cooperatives engage in direct marketing, bypassing traders who often underprice farm products.

5. Shared Resources and Knowledge

• Members can share knowledge on best farming practices, modern techniques, and climate-resilient agriculture.

• Organizations sometimes operate shared facilities, such as post-harvest centers, warehouses, or irrigation systems.

6. Stronger Legal and Institutional Support

• Farmers’ organizations help protect ARBs from land disputes, eviction, or unjust policies.

• They provide legal assistance and ensure that ARBs’ rights under PD 27 and RA 6657 are upheld.

ARBs are encouraged to join farmers’ organizations because doing so offers them economic, social, and legal advantages that can improve their productivity and quality of life. By working collectively, they can overcome challenges that individual farmers may struggle to handle.