President Ferdinand Marcos Jr. on Tuesday gave the green light to a two-year moratorium of payments for land amortization and interest owed by agrarian reform beneficiaries.
Marcos has officially endorsed an executive order (EO) that extends the agrarian debt moratorium, which he initially sanctioned in September 2022, for an extra two-year duration. This executive order stretches the debt moratorium until September 2025.
Marcos, who currently holds the position of agriculture chief alongside his role as President, mentioned that the previous executive order did not include particular agrarian reform beneficiaries.
He also noted the importance of helping some 610,054 agrarian reform beneficiaries (ARBs) to help the government attain its bid for food security.
"So, I urge the DAR with all government agencies to strive for a smooth and immediate execution of this IRR so that our beneficiaries may be freed from the burden of debts and reap the benefits from the land that they tirelessly cultivate, continue to facilitate the delivery of support services to all ARBs and make them your foremost priority in all our development efforts," he said.
Marcos assured the local farmers of the government's continued support to empower them and help the nation in securing a "more progressive, sustainable and resilient future."
"This will enable us and ARBs and the rest of our farmers to realize the utmost potential and reach for our aspirations for our families, for our communities and for our country," he said.
"To achieve this, we have collaborated with experts, we have strengthened our supply chains and pushed for the enactment of the new Agrarian Emancipation Act. I therefore acknowledge the efforts of the DAR and other implementing agencies for supporting our endeavor to help our producers lead more dignified lives and attain food security for our people," Marcos added.
Enacted on 9 July 2023, RA 11953 forgives all outstanding loans, encompassing accrued interests, penalties, and surcharges, incurred by Agrarian Reform Beneficiaries (ARBs) on the land they were granted.
This debt forgiveness extends to approximately 1.173 million hectares of land, benefiting approximately 610,054 ARBs who collectively had incurred an estimated P57.55 billion in unpaid amortizations.
Additionally, RA 11953 puts an end to the obligation of 10,201 ARBs, cultivating 11,531 hectares of land obtained through either the voluntary land transfer or direct payment scheme (VLT/DPS), to pay P206.247 million in overdue just compensation to the landowners.
Further advantages for ARBs include exemption from estate tax payments and automatic inclusion in the Registry System of Basic Sectors in Agriculture, facilitating their access to support services provided by the Department of Agriculture.
The Implementing Rules and Regulations (IRR) outline procedures for expediting the debt forgiveness process and the government's payment of outstanding just compensation to landowners for lands acquired under the VLT/DPS.