24/04/2026
๐ฃNo More Amortizations, No More Estate Tax for Farmer Beneficiaries
You read that right. That's Republic Act No. 11953, a.k.a. the ๐ก๐ฒ๐ ๐๐ด๐ฟ๐ฎ๐ฟ๐ถ๐ฎ๐ป ๐๐บ๐ฎ๐ป๐ฐ๐ถ๐ฝ๐ฎ๐๐ถ๐ผ๐ป ๐๐ฐ๐ โ signed into law on July 7, 2023. And whether you're a farmer, an heir of a farmer, or someone interested in agricultural land, you need to understand what this law does. ๐
๐ ๐ง๐ต๐ฒ ๐๐ฎ๐ฐ๐ธ๐ด๐ฟ๐ผ๐๐ป๐ฑ
Under existing agrarian reform laws โ Presidential Decree No. 27, RA 6657 (Comprehensive Agrarian Reform Law), and RA 9700 โ farmers who were awarded land as Agrarian Reform Beneficiaries (ARBs) were required to pay for that land in annual installments over 30 years, with 6% annual interest, through the Land Bank of the Philippines.
The intention was good. But the reality? A lot of these farmers could barely feed their families, let alone keep up with 30 years of amortization payments. Many fell behind. And when they couldn't pay, they faced forfeiture of the very land they were supposed to be freed by.
RA 11953 changes that.
๐ ๐ช๐ต๐ฎ๐ ๐๐ต๐ฒ ๐๐ฎ๐ ๐๐ผ๐ฒ๐
โ ๐๐ผ๐ป๐ฑ๐ผ๐ป๐ฒ๐ ๐ฎ๐น๐น ๐๐ป๐ฝ๐ฎ๐ถ๐ฑ ๐ฑ๐ฒ๐ฏ๐. The law writes off all unpaid amortizations on the principal loan โ including interest, penalties, and surcharges โ incurred by ARBs for land awarded under CARP and other agrarian reform programs. The government absorbs the cost. The farmer owes nothing.
โ ๐๐ผ๐๐ฒ๐ฟ๐ ๐ผ๐๐ฒ๐ฟ ๐ฒ๐ญ๐ฌ,๐ฌ๐ฌ๐ฌ ๐ฏ๐ฒ๐ป๐ฒ๐ณ๐ถ๐ฐ๐ถ๐ฎ๐ฟ๐ถ๐ฒ๐. A total of 610,054 ARBs tilling 1.17 million hectares of agrarian reform land are covered. The first batch โ 263,622 ARBs with โฑ14.5 billion in principal loans โ received outright condonation. The remaining โฑ43 billion is being processed as LBP and DAR submit detailed records to Congress.
โ ๐๐ฟ๐ฒ๐ฒ๐ ๐น๐ฎ๐ป๐ฑ ๐๐ถ๐๐น๐ฒ๐ ๐ณ๐ฟ๐ผ๐บ ๐บ๐ผ๐ฟ๐๐ด๐ฎ๐ด๐ฒ ๐น๐ถ๐ฒ๐ป๐. With the debt condoned, CLOAs (Certificates of Land Ownership Award) and Emancipation Patents are freed from the mortgage annotations tied to unpaid obligations. ARBs receive a Certificate of Condonation and Release of Mortgage (COCROM) โ making their land fully, legally, debt-free.
โ ๐๐๐๐ฎ๐๐ฒ ๐๐ฎ๐
๐ฒ๐
๐ฒ๐บ๐ฝ๐๐ถ๐ผ๐ป. Here's a provision a lot of people overlook: agrarian reform land is now exempt from estate tax when transferred to the ARB's heirs. Ibig sabihin, kapag pumanaw ang magsasaka, pwede nang ipasa ang lupa sa mga anak nang hindi kailangang magbayad ng estate tax. This removes one of the biggest barriers to intergenerational land transfer among farming families.
โ ๐๐ผ๐ฟ๐ณ๐ฒ๐ถ๐๐๐ฟ๐ฒ ๐ฐ๐ฎ๐๐ฒ๐ ๐ฑ๐ถ๐๐บ๐ถ๐๐๐ฒ๐ฑ. Any pending case where a farmer's CLOA or Emancipation Patent was being forfeited ๐ด๐ฐ๐ญ๐ฆ๐ญ๐บ because of failure to pay amortization โ dismissed. If the title was already cancelled, it must be restored. If the land was already awarded to someone else, the DAR must find equitable replacement land for the displaced ARB.
โ ๐ฅ๐ฆ๐๐ฆ๐ ๐ฟ๐ฒ๐ด๐ถ๐๐๐ฟ๐ฎ๐๐ถ๐ผ๐ป. ARBs are to be included in the Registry System for Basic Sectors in Agriculture (RSBSA) of the Department of Agriculture. This entitles them to government support services, including 100% premium-subsidized crop insurance through the Philippine Crop Insurance Corporation (PCIC), credit facilities, and other agricultural programs.
โ ๏ธ ๐๐บ๐ฝ๐ผ๐ฟ๐๐ฎ๐ป๐ ๐ฅ๐ฒ๐๐๐ฟ๐ถ๐ฐ๐๐ถ๐ผ๐ป๐ ๐ฆ๐๐ถ๐น๐น ๐ถ๐ป ๐ฃ๐น๐ฎ๐ฐ๐ฒ
Debt-free doesn't mean free to sell. The 10-year restriction on the sale or transfer of CLOA-covered land under RA 6657 is ๐ด๐๐ช๐ญ๐ญ in effect. RA 11953 did not remove this. Within the 10-year period (counted from registration of the CLOA), the land can only be transferred by hereditary succession, to the government, or to another qualified ARB through DAR. Selling within the prohibitory period is void, and the ARB can be disqualified and lose the title.
This is an important point for real estate investors and developers, too โ agricultural land covered by a CLOA cannot simply be bought and converted. The restrictions are real, and violations carry serious legal consequences.
๐ ๐๐ผ๐๐๐ผ๐บ ๐๐ถ๐ป๐ฒ
RA 11953 doesn't just condone debt โ it gives farmers actual, unencumbered ownership of the land they've been tilling for decades. No more amortizations. No more threat of forfeiture. No estate tax for their heirs. And access to government agricultural support.
For a lot of farming families, this law is the difference between holding onto their land and losing it. If you're an ARB or the heir of one, find out if you've received your Certificate of Condonation. Coordinate with your local DAR office. The law is there โ make sure you benefit from it.
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