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. 

ARBOs in Cagayan province granted P8.6M APCP loan

There are at least five agrarian reform beneficiaries’ organizations (ARBOs) in Cagayan province who have applied for loan services from the DA-DAR-LBP Agrarian Production Credit Program (APCP) to finance crop production that will expand agri-enterprise and livelihood projects of their members.

Three of these ARBOs’ applications have been approved as of June 2014, namely: (1) Bical-Baliuag ARB MPC in CABICA Agrarian Reform Community (ARC), Penablanca, Cagayan with a total loan release of P3,300,000.00 for agricultural production loan on corn production benefiting 54 member-ARBs; (2) Caagaman ARC Multi-Purpose Cooperative in Caagaman ARC, Aparri, Cagayan with a loan release of P1,300,000.00 for agricultural production loan on rice production benefiting 60 member-ARBs; and (3) Aparri Valley of Jothbath MPC in Seabreeze ARC, Aparri, Cagayan with a loan release of P4,000,000.00 for agricultural production loan on rice production benefiting 130 member-ARBs.

The other ARBOs who have similarly applied for loan under the APCP but are still awaiting the approval thereof are: Bugnay MPC in the Sabung ARC, Tuao, Cagayan with a loan application of P3,000,000.00 for agricultural production loan on rice production to benefit 54 member-ARBs and Cabayabasan Farmers Cooperative in Nueva Segovia ARC, Lallo, Cagayan with a loan application of P1,500,000.00 to benefit 58 member-ARBs.

According to data earlier disclosed by Mr. Virgilio M. Acasili, Provincial Agrarian Program Reform Officer II (PARPO II) of Cagayan-Batanes provinces, only 57% of farmers have access to credit from financing institutions; that one in three ARBs in ARCs is in need of credit; that new ARB organizations may still not qualify under CAP-PBD and LBP regular lending program; that some ARB organizations still require organizational strengthening to make them credit worthy; and that for these reasons the DA, DAR and LBP have to pool resources and expertise to help ARBs access affordable credit, development assistance and marketing support. 

Sometime in 2012, PresidentBenigno S. Aquino, in line with his commitment to ensure ample support for Agrarian Reform Beneficiaries (ARB instructed the Department of Budget and Management (DBM) to release P1.0 billion to the Department of Agriculture (DA) for the nationwide implementation of the Agrarian Production Credit Program (APCP).

The release was made chargeable against the 2012 General Appropriations Act and is in accordance with a five-year Memorandum of Agreement (MOA) signed by the DA, the Department of Agrarian Reform (DAR), and Land Bank of the Philippines. It will provide much-needed credit assistance to farmer-beneficiaries under the agrarian reform program.

Under the MOA, the DA will place the P1-billion fund with Land Bank, P300 million of which will be allocated exclusively for Negros Occidental. The total fund will be used to support the credit requirements of ARBs or ARB household members for their individual or communal crop production projects including  agri-enterprise and livelihood activities.

Through the program, the DA will provide basic support and services, such as marketing assistance and technology packages to qualified ARB organizations (ARBOs). Meanwhile, DAR will be at the helm of identifying eligible ARBs or ARB household members to Landbank. The agency will also provide parallel institutional development assistance to participating ARBOs to help them graduate them to regular lending programs.

DAR will also provide capability-building assistance to beneficiaries, as well as professional management services and facilities support, including those for farm equipment, postharvest facilities, and storage, among others.

This capacity-building program is tailored for new and existing ARBs who are yet to avail loans. Adopting a more lenient set of policies and procedures in extending credit, APCP is the vehicle through which financial and technical services shall be delivered to ARBs consisting mainly of credit provisioning and capacity building to ARB organizations.

               Under this program, ARBs in organizations within the top 21 high LAD provinces shall be able to develop their knowledge and competencies in engaging and managing agri-enterprises, as well as upgrade their skills on financial management thereby enhancing their credit worthiness or bankability. /cds

Iguig ARB Coop receives Php1M loan from Land Bank

The Eastern Iguig Multi-Purpose Cooperative (Eastern Iguig MPC) received a one million peso (Php1,000,000.00) loan from the Land Bank of the Philippines through the Credit Assistance Program for Program Beneficiaries Development (CAP-PBD) of the Department of Agrarian Reform (DAR) for relending purposes to members of the cooperative. A symbolic one-million peso check was awarded by DAR ASEC Jose G. Grajeda on October 4, 2012 during the turn-over ceremony at barangay Sta. Barbara, Iguig, Cagayan.

Farmer-beneficiary members of Eastern Iguig MPC receiving the Php1million loan. 

The Credit Assistance Program for Program Beneficiaries Development (CAP-PBD) was conceptualized to provide credit support to Agrarian Reform Beneficiaries' organizations who cannot yet qualify under the accreditation criteria of government and private financing institutions. The said credit support aims to serve as a venue to develop the ARB organizations' entrepreneurial competence and credit worthiness, leading to their qualification to avail of the different credit windows of financial institutions.

Land Bank and DAR staff.

Each of the thirty-one (31) farmer-beneficiary member of the cooperative can avail P25,000 per hectare for rice production with an interest of two percent (2%) per month payable within one hundred eighty (180) days. /cds