CHAPTER 7: LAND USE CONVERSION

Land use conversion the act or process of changing the current use of a piece of
agricultural land into some other use as approved by DAR; the process of changing the use
of agricultural land to non-agricultural uses.
Reclassification the act of specifying how agricultural lands shall be utilized for non-
agricultural uses such as residential, industrial, commercial, as embodied in the land use
plan, subject to the requirements and procedures for conversion; includes the reversion of
non-agricultural lands to agricultural use.
Under the LGC, a city or municipality may authorize the reclassification of agricultural
lands and provide for the manner of their utilization or disposition under the ff.
circumstances:
1. When the land ceases to be economically feasible and sound for agricultural
purposes as determined by the DA; or
2. Where the land shall have substantially greater economic value for residential,
commercial, or industrial purposes, as determined by the sanggunian concerned
The reclassification should be made after conducting public hearing and that it shall be
limited to the following percentage of the total agricultural land area at the time of the
passage of the ordinance:
1. for highly urbanized and independent component cities 15 %
2. for component cities and third class municipalities 10%
3. fourth to sixth class municipalities 5%
Provided that agricultural lands distributed to agrarian reform beneficiaries pursuant to RA
6657 shall not be affected by the said reclassification and the conversion of such lands into
other purposes shall be governed by Sec. 65. The percentage is not absolute. The President
may, when public interest so requires and upon NEDA recommendation, authorize a city or
municipality to reclassify lands in excess of the limits cited above.
The ff. types of agricultural lands shall not be covered:
1. agricultural lands distributed to agrarian reform beneficiaries subject to Sec. 65 of
RA 6657;
2. agricultural lands already issued a notice of coverage or voluntarily offered for
coverage under CARP;
3. agricultural lands identified under AO 20, as non-negotiable for conversion
The power of the DAR to approve or disapprove land use conversion applications is
exclusive. DARs role in the reclassification process is the issuance of a certification that
the lands sought to be reclassified are not distributed or not covered by a notice of
coverage or not voluntarily offered for coverage under CARP. The certification must be
secured by the sangguinian concerned prior to the enactment of an ordinance reclassifying
the agricultural land. After the reclassification by the LGU, a DAR conversion clearance
shall be required prior to actual change of use of the land.
Agricultural lands expropriated by LGUs pursuant to the power of eminent domain need
not be subject of DAR conversion clearance prior to change in use.