DAR clearance, a bane for countryside agricultural development

Continuing to require transferees of agricultural land not covered by the CARP to secure a Transfer Clearance becomes not only unreasonable but a clear and unwarranted restriction on their right over their property and runs counter to the Government’s goal of encouraging development of agricultural lands

Published in Daily Tribune on March 26, 2021
by: Juan Romulo R. Taleon

With the advent of the pandemic and the move of the government to instill development outside of Metro Manila, businesses and individuals, in their aim of heeding the call of the administration and helping the local economies grow and expand, might want to consider procuring agricultural land in the provinces. Considerations for this are cheap price points and great potential for growth and development.

One obstacle, however, that any corporation, business or interested person should take note of and must secure before transferring any agricultural land in its name is the Transfer Clearance, otherwise known as DAR Clearance.

The Transfer Clearance/DAR Clearance is mandated by DAR A.O. 6, Series of 2016, which generally covers the transfer to a private person of all agricultural lands, all awarded lands by the DAR after the holding period, all transferred awarded lands, and all other private agricultural lands not or yet to be acquired for distribution under the agrarian reform programs of the State.

The only transaction exempted from the requirement of a Transfer Clearance from the DAR is the transfer of ownership of agricultural lands to any government entity. However, such government entity must still inform the DAR Provincial and Regional Office of such transfer, in writing, for information and record purposes.

Article IV Section 10 of DAR A.O. 6 — 2016 defines “Transfer Clearance as a certification that, based on the documents submitted by the applicants, the restrictions in transferring agricultural lands under RA 6657 (Comprehensive Agrarian Reform Program [CARP]), as amended, does not apply to the subject transfer, and a written notification to the Registry of Deeds that, subject to the truthfulness of the documents submitted by the applicants, the DAR is not interposing any objections against the registration of the transfer”.

This is a reasonable requirement especially for transfers of agricultural lands that were awarded pursuant to and covered by the CARP given that its purpose is to ensure that these agricultural lands are used for sound rural development and industrialization and that LandBank loans secured therefor are paid before any valid transfer is permitted.

The rationale for these requirements is, however, lost when it is made to apply to the transfer of agricultural lands not covered by the CARP, which ended on 30 June 2014. By continuing to require transferees of agricultural land not covered by the CARP to secure a Transfer Clearance becomes not only unreasonable but a clear and unwarranted restriction on their right over their property and runs counter to the Government’s goal of encouraging development of agricultural lands.

The government’s insistence upon this requirement would likely discourage potential buyers who have the capital and vision to go into the business of agriculture from purchasing agricultural lands.

Additionally, heirs who only desire to secure inherited agricultural lands will also be required to undergo the tedium of having to submit the documentary requirements under Sections 12 and 14 of the aforementioned AO just so they can have inherited properties registered in their names.

I have nothing against the mandatory requirement for the issuance of the DAR/Transfer Clearance before a valid transfer is realized. I, in fact, acknowledge its importance for the purpose it was intended to achieve.

However, a line must be drawn especially when the purpose is lost and the continuing requirement can only result in undue burden to industries, groups, and individuals whose sole intention is to spur the growth of the nation’s agricultural industry.