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. 

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