1. Poverty Reduction and Income Gains
2. Increased Agricultural Productivity
The Agrarian Reform Communities Development Project (ARCDP2) reported significant increases in crop yields post-implementation. For instance, hybrid rice yields increased by 30%, and traditional corn yields rose by 131%. -FFTC Agriculture Platform
3. Enhanced Access to Services
ARBs residing in ARCs had better access to basic services such as potable water and sanitary toilets, and higher ownership of household assets compared to non-ARBs. -FAOHome
Challenges and Criticisms
1. Decline in Farm Productivity
A study by Adamopoulos and Restuccia (2014) found that agricultural productivity under the Comprehensive Agrarian Reform Program (CARP) fell by 17%, alongside a 34% reduction in average farm size. -AmericanEconomic Association
2. Persistence of Rural Poverty
Despite land redistribution, a 2014 paper by Raul Fabella noted that poverty incidence among ARBs in ARCs stood at 54% in 2011, higher than the national average for farmers. This led to the characterization of ARBs as the "landed poor." -UP School of Economics
While Agrarian Reform Communities (ARCs) have led to notable improvements in poverty reduction, agricultural productivity, and access to services for beneficiaries, challenges such as declining farm sizes, reduced overall productivity, and persistent poverty among ARBs highlight the need for policy adjustments. Addressing land market restrictions and providing sustained support services are crucial for enhancing the economic impact of agrarian reform in the Philippines.
✅1. Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS) Program.
*Year Implemented: 2011
*Lead Agency: Department of Agrarian Reform (DAR)
Objective: Enhance productivity and income of ARBs by supporting ARB organizations (ARBOs) through: Enterprise development, Common Service Facilities (CSFs) like tractors and post-harvest equipment and Business development services and training.
Impact: Helped ARBs transition from subsistence to
commercial farming in many ARCs by integrating them into value chains and
improving productivity.
✅ 2. Agrarian Production Credit Program (APCP).
*Year Implemented: 2012
*Lead Agencies: DAR, Land Bank of the Philippines (LBP),
Department of Agriculture (DA)
*Objective: Provide accessible and affordable credit to ARBs for production inputs and agri-enterprises.
*Loan features: Low interest, no collateral for
accredited ARBO members
*Impact: Bridged financing gaps for ARBs who previously
relied on informal, high-interest sources.
✅ 3. Partnership Against Hunger and Poverty (PAHP)
*Lead Agencies: DAR, Department of Social Welfare and
Development (DSWD), DA
*Objective: Link ARBs and ARBOs to institutional buyers (e.g., feeding programs, schools) to ensure markets for their produce.
*Impact: Provided consistent income sources and market
assurance for many farmer groups.
✅ 4. Split Project (Support to Parcelization of Lands for Individual Titling)
*Year Implemented: 2020 (funded by the World Bank)
*Lead Agency: DAR
*Objective: Fast-track the parcelization of collective Certificate of Land Ownership Awards (CLOAs) into individual titles.
*Rationale: Individual titles give ARBs greater
security, enabling access to loans, land-based investments, and formal markets.
*Target: 1.3 million hectares to be titled to 1.1
million ARBs by 2024.
*Impact: Aims to improve land tenure security and
farmer confidence in long-term investment.
✅5. Executive Order No. 75, Series of 2019
*Scope: Accelerated land distribution through administrative means, expanding the land reform coverage without judicial delays.
✅ 6. Republic Act No. 11953 or the “New Agrarian Emancipation Act”
*Signed Into Law: July 2023
*Key Provision: Condones ₱57.6 billion in unpaid
debts of over 600,000 ARBs
*Impact: Expected to boost income by removing financial constraints tied to land repayment obligations.
In general, the ARC strategy has had a positive impact on poverty reduction, such as: (1) Faster Poverty Reduction in ARC Areas. A study by Ballesteros and dela Cruz (2016) from the Philippine Institute for Development Studies (PIDS) showed that poverty incidence declined faster in ARC barangays compared to non-ARC areas between 1990 and 2010. Poverty incidence dropped by 28.3 percentage points in ARC areas, slightly outperforming non-ARC barangays. This suggests that the integrated approach of providing land and support services (infrastructure, credit, training) had measurable effects on household welfare; and (2) Improved Income and Welfare Indicators. The Department of Agrarian Reform (DAR) reported that ARBs in ARC areas generally had higher incomes, more assets, and better access to services (e.g., potable water, electricity, schools). World Bank evaluations (such as of ARCDP1 and ARCDP2) found that ARC strategies helped transition subsistence farmers to market-oriented production, boosting incomes and reducing vulnerability.
📌 Conclusion
The ARC strategy has contributed to poverty reduction among farmers by integrating land reform with support services and infrastructure development. However, its effectiveness depends heavily on sustained government support, cooperative development, and access to markets. In well-functioning ARCs, poverty reduction has been substantial; in weaker or poorly supported areas, gains were limited.
