ARB households in ARCs associated with higher incomes, lower poverty incidence, and better welfare outcomes.

Studies on agrarian reform in the Philippines show the role of the Agrarian Reform Community 

(ARC) approach in the Philippines and how membership in an ARC is associated with better incomes and welfare outcomes among agrarian reform beneficiaries (ARBs):

Impact of Agrarian Reform on Poverty (Celia M. Reyes, 2002)

• Using panel data from ~1,500 farming households (1990 and 2000), the study finds that being an ARB and being in an agrarian reform community (ARC) increases the probability of being non-poor. 

• It also shows that ARB households in ARC areas had higher real per capita incomes and lower poverty incidence compared to non-ARBs.

• The study explicitly mentions: “being in an agrarian reform community also has the same effect” of increasing the chance of being non-poor. 

Agrarian Reform and Poverty Reduction in the Philippines (Arsenio M. Balisacan & others, 2007)

• The paper describes the ARC approach (launched in 1993), which “concentrates resources in selected areas to deliver support services” rather than dispersing them broadly. 

• It asserts that “the ARC approach … if properly implemented, improves the economic conditions, social capital, and democratic participation of the communities.” 

• While it does not always report precise income coefficients for ARCs in all cases, it identifies ARCs as a key channel for delivering complementary services that enhance the poverty-reduction impact of agrarian reform.

Comprehensive Agrarian Reform Program (CARP): Time to Let Go (Raul V. Fabella, 2014)

• This review paper notes that a 2011 internal DAR study (the “ARC Level of Development Assessment (ALDA)”) found that among ARBs in ARCs:

  “the average yield (ton/hectare) among ARC beneficiaries in palay was 10 percent higher than the national average … in corn it was 50 percent higher” and that ARCs receive more credit and irrigation support. 

• Although not purely income data, the yield and support-service data support the link between ARC membership and improved productivity/investment, which ties to higher incomes.

Economic Evaluation of Agrarian Reform Beneficiaries in Agrarian Reform Communities in Nueva Ecija (Johnah Jefferson Mercado, Alma Dela Cruz & Ma. Pamela Roguel, 2021)

• This more recent case study investigates two ARCs in Nueva Ecija and evaluates support services, infrastructure and income/benefit outcomes. 

• While the full paper may need to be accessed for detailed income figures, it provides empirical evidence of ARCs being privileged in terms of infrastructure and support, which correlates with better outcomes.

Summary of Evidence

• There is empirical support that being part of an ARC (i.e., a cluster of ARB households with concentrated support services) is associated with higher incomes, lower poverty incidence, and better welfare outcomes.

• The mechanism is that ARCs allow for targeted delivery of infrastructure, credit, irrigation, extension services and community organization, which amplify the benefits of land-reform.

• The evidence is stronger in some cases (like the Reyes 2002 study) and somewhat weaker or mixed in others—but taken together, the weight of evidence supports the proposition that ARCs matter.

Link: What is an Agrarian Reform Community (ARC)

           DAR MC 14-99 Guidelines on ARC Launching

MBG Farmers Irrigators Cooperative: From Agrarian Reform Beneficiary to Accredited Learning Site for Agriculture (LSA)

CAGAYAN VALLEY, PHILIPPINES — In a remarkable journey from tilling the land to transforming it into a center of learning, the MBG Farmers Irrigators Cooperative, an agrarian reform beneficiary organization (ARBO) in Region II, has earned its distinction as an accredited Learning Site for Agriculture (LSA) under the Department of Agriculture – Agricultural Training Institute (DA-ATI).

From Land to Learning

Formed by a group of dedicated farmer-beneficiaries under the government’s Comprehensive Agrarian Reform Program (CARP), MBG Farmers Irrigators Cooperative has long been a vital force in the rural economy of its community. With strong roots in rice farming and irrigation management, the cooperative was originally organized to empower farmers through land ownership and collective productivity.

Today, it stands as more than just a farmers’ cooperative—it is a beacon of innovation and shared knowledge, recognized officially as an LSA, where it hosts learning sessions, field demonstrations, and technical trainings for farmers, youth, agricultural extension workers, and other stakeholders in the agri-fishery sector.

Building Capacity Through Agriculture

The LSA program, spearheaded by the DA-ATI, aims to recognize and support farmer-led farms that showcase effective, sustainable, and innovative farming practices. The MBG cooperative fits this mold perfectly. Its members have adopted diversified and climate-resilient farming systems that include:

• Palay production using water-efficient irrigation systems

• Integrated rice-fish farming

• Vermicomposting and organic fertilizer production

• Use of farm machinery for postharvest processing

As an LSA, MBG now serves as a hands-on learning venue where trainees can engage directly with actual farming processes—from land preparation and crop production to marketing and cooperative management.

Agrarian Reform in Action

The MBG Farmers Irrigators Cooperative’s recognition as an LSA also underscores the success of the Department of Agrarian Reform’s support services, particularly in ARBO development and sustainability. With the backing of DAR and its partnership with DA-ATI, cooperatives like MBG are not only increasing farm productivity but also fostering a new generation of farmer-leaders and agri-entrepreneurs.

Empowering Rural Communities

For members of the cooperative and the broader community, the impact has been transformative. Local farmers now have access to technical training without the need to travel far, while young people are being drawn back to agriculture through MBG’s inclusive, community-based learning approach.

“Our farm is not just a source of livelihood—it is a classroom, a laboratory, and a place of hope,” says [Cooperative Chairperson/Manager], highlighting the importance of farmer-led learning in rural development.

The Road Ahead

As MBG Farmers Irrigators Cooperative continues to grow in its dual role as a productive ARBO and a Learning Site for Agriculture, it envisions further innovation, partnerships, and youth engagement. Plans are underway to expand its demonstration areas, host more specialized trainings, and serve as a model for other ARBOs aspiring to become LSAs.

Its success story is a testament to what can happen when agrarian reform, cooperative empowerment, and agricultural education converge, building not only better farms but stronger, self-sustaining communities.

The economic impact of Agrarian Reform Communities (ARCs) in the Philippines

The economic impact of Agrarian Reform Communities (ARCs) in the Philippines has been extensively studied, revealing a complex picture of both benefits and challenges. Below is a synthesis of empirical findings from various studies:

📈 Positive Economic Outcomes

1. Poverty Reduction and Income Gains

 Between 1990 and 2010, poverty incidence in ARC barangays declined by 28.3 percentage points, a slightly greater reduction than in non-ARC barangays. This suggests that ARCs contributed to faster poverty alleviation in rural areas. -ResearchGate

 A 2002 study by Celia Reyes found that agrarian reform beneficiaries (ARBs) experienced higher real per capita incomes and reduced poverty incidence between 1990 and 2000 compared to non-ARBs. -PIDS

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

 3. Implementation Issues

 Critics argue that restrictions on land markets and the fragmentation of landholdings have hindered the potential economic benefits of agrarian reform.

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.

Key policy adjustments made after 2010 in the Philippines aimed at improving the incomes of Agrarian Reform Beneficiaries (ARBs):

✅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)

 *Year Implemented: 2014(pilot); expanded thereafter

*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

 *Issued By: President Rodrigo Duterte

 *Purpose: Mandates the distribution of government-owned lands suitable for agriculture to qualified beneficiaries.

*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

 *Goal: Free ARBs from amortization burdens and encourage reinvestment in agriculture.

*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.

 

DARPO starts IT-based assessment tool for ARCs and ARBOs

The Department of Agrarian Reform Provincial Office of Cagayan has started to conduct a series of information technology-enabled assessment system (IT-eASy) for agrarian reform communities (ARCs) and agrarian reform beneficiaries’ organizations (ARBOs), to determine their level or stages of development. The IT-eASy is a tool used by the Department of Agrarian Reform to gauge the organizational maturity of each agrarian reform community (ARC) and agrarian reform and beneficiaries’ organization (ARBO).

There is a need to assess the level of organizational maturity of the ARBOs for the DAR to determine the outcomes of the basic and advance interventions that has been provided to these groups in terms of land tenure improvement, agrarian justice delivery and delivery of support services.

By assessing their maturity, it will reflect the effectivity of DAR's support interventions and what needs to be improved or if needed, a more tailor-fit approach anchored on the needs of the farmer organizations and their communities. ARBOs with a high maturity score may also be given the opportunity to receive greater support services from DAR, that is, based the ability and competency of the ARBOs to successfully manage the programs and projects aimed at increasing productivity and income.