The officers of DAREA said that Senate Bill 2553 sponsored by Sen. Sergio Osmeña amends certain sections of Republic Act 6657 or CARP. The bill allows the unlimited selling of CARP covered lands to any entity or person, thereby making possible reconsolidation of properties. It leaves farmers to settle their obligations on their own for lack of provision for the establishment of credits guarantee facility.
The Senate version of the bill they said will reverse agrarian reform in the Philippines because the onerous provisions will actually result in farmers losing their lands. Mortgages and transferees of awarded lands will no longer be subject to any limitation on the total area of lands they may own, they added.
The officers pointed out Senate Bill 2554 will create wider gap between market prices and CARP land valuation that will invite strong resistance vis-avis the program. This will also decrease the lands used for agricultural production due to open transferability.
The Senate Bill 2553 was passed on third and final reading last September amidst overwhelming opposition from various agrarian reform stakeholders.
Agrarian Reform Secretary Roberto M. Pagdanganan said he prefers House Bill 5511 or an "Act Amending Certain Sections of Republic Act 6657" because it respects the retention limit – five hectares of the landowners and three hectares for each child – as provided for under the law.
Pagdanganan added that the House version also limits the use of the loan proceeds exclusively for agricultural activity such as agricultural production, land development and post-harvest facilities, among others. The Senate version is silent on this issue.
To make the law more responsive, Pagdanganan said that the mortgage of the awarded lands should be allowed only to duly authorized financial institutions such as private and government banks, rural banks, credit cooperative for easy monitoring of mortgage and transfer activities, and to ensure that they are done within existing laws.