Below is a comprehensive discussion of the Comprehensive Agrarian Reform Program (CARP) in the Philippines, focusing particularly on how eligibility and coverage apply to land parcels larger than 500 square meters (“over 500 sqm”). While there is no single provision in Philippine agrarian laws that expressly hinges coverage solely on a “500 sqm” threshold, the question often arises for small parcels of land, so it is best to clarify the general rules and nuances that apply. This article covers:

Legal Foundations of CARP
Scope and Coverage of the Law
Retention Limits and Exemptions
Conversion and Reclassification
Process of Distribution and Eligibility
Practical Considerations for Landowners and Beneficiaries
Relevant Jurisprudence and DAR Issuances

1. Legal Foundations of CARP

1.1. Constitutional Basis

1987 Philippine Constitution: Article XIII, Section 4, mandates the State to undertake an agrarian reform program that grants land to farmers and regular farmworkers. It declares agrarian reform as a primary social justice measure, aiming to promote equitable land ownership.

1.2. Statutory Basis

Republic Act No. 6657 (Comprehensive Agrarian Reform Law of 1988 or CARL): This is the principal legislation implementing agrarian reform in the Philippines.
Republic Act No. 9700 (CARP Extension with Reforms or CARPER): This law extended funding and deadlines for land acquisition and distribution and introduced refinements to RA 6657.

Together, these laws, supplemented by Department of Agrarian Reform (DAR) Administrative Orders (AOs) and issuances, govern the coverage, acquisition, distribution, and support services under CARP.

2. Scope and Coverage of the Law

2.1. General Rule

Under Section 4 of RA 6657, all public and private agricultural lands are covered by the Comprehensive Agrarian Reform Program, regardless of tenurial arrangement and commodity produced. The law seeks to provide land to landless farmers and farmworkers.

2.2. Agricultural Land Definition

The law generally defines “agricultural land” as land devoted to or suitable for agriculture (crops, livestock, poultry, fisheries, etc.) and not classified as mineral, forest, residential, commercial, or industrial.
If a piece of land is officially reclassified or converted (with DAR approval) for non-agricultural use, it may be excluded from CARP coverage.

2.3. The 500 Square Meter Issue

There is no explicit CARP provision stating that “500 square meters” alone is a definitive threshold for coverage. Generally:

Very small landholdings (less than 1 hectare, or 10,000 sqm) may still be subject to coverage if they exceed the landowner’s allowed retention rights.
Where 500 sqm arises in practice is usually in urban or semi-urban contexts, or in subdivisions of land for residential use. If the land is still classified (and used) as agricultural, even if it is slightly above 500 sqm, the DAR may still look into coverage unless the land is otherwise exempt or excluded.

Thus, merely having more than 500 sqm of land does not automatically trigger or foreclose CARP coverage. Instead, the crux is whether the land remains agricultural and whether the owner still has available retention rights.

3. Retention Limits and Exemptions

3.1. Retention Right

Five (5) Hectare Retention: Under RA 6657, as amended, a landowner can retain a maximum of five (5) hectares of agricultural land.
Three (3) Hectares for Each Child: Each child of the landowner, at least 15 years old and actually tilling or managing the farm, may be allocated up to three (3) hectares, provided certain requirements are met.

In practice, if an individual landowner owns only a parcel of land measuring, say, 1,500 sqm (0.15 hectare), it would generally fall below the 5-hectare retention limit and thus is not subject to compulsory acquisition if that is the only property. However, if the same owner has multiple other agricultural parcels, then overall coverage and distribution could still be triggered if the total aggregated area exceeds the retention limit.

3.2. Exemptions

Some landholdings are legally exempt from agrarian reform:

Land already classified as forest or mineral: Outside the scope of agrarian reform.
Land used for national defense, schools, public facilities: Generally exempt from distribution.
Conversion to non-agricultural uses: If duly approved by DAR (through land use conversion procedures), the land becomes exempt from coverage once the conversion is granted.

3.3. Exclusion for Residential, Commercial, or Industrial Use

If the land has been effectively and legally reclassified or devoted to non-agricultural uses (e.g., a legitimate subdivision or industrial complex), DAR coverage typically does not apply.
However, illegal or unauthorized reclassification (e.g., unapproved or spurious land conversion) does not exempt the land from CARP.

4. Conversion and Reclassification

Although not strictly about the “500 sqm” figure, small parcels often enter the realm of agrarian law when owners seek to convert the agricultural classification of the land. The DAR is the principal authority for approving or denying applications for land use conversion. Key points:

DAR Conversion Approval: Converting an agricultural lot to a different use (e.g., residential) requires a DAR conversion order.
Local Government Classification: Sometimes local ordinances reclassify land from agricultural to residential or commercial; however, a mere reclassification from the local government is not enough to exempt it from CARP coverage. The DAR’s approval is still required.
Small Parcels: Even if the land is “small” (for example, over 500 sqm but under 1,000 sqm), if the land remains agricultural in actual use and classification, the rules on coverage and retention still apply.

5. Process of Distribution and Eligibility

5.1. Identifying Land for Coverage

The DAR conducts surveys and investigations to determine which lands are still eligible for coverage.
If the landowner has more than 5 hectares in total, DAR typically moves to acquire land in excess of that retention limit.

5.2. Land Valuation and Compensation

If the land is subject to compulsory acquisition, the Land Bank of the Philippines appraises and compensates the landowner based on the prescribed formulas in agrarian laws and DAR AOs.

5.3. Beneficiaries and Installation

Qualified beneficiaries (farmers, farmworkers, tenants) are identified.
Titles (Certificate of Land Ownership Award, or CLOA) are eventually issued to the new agrarian reform beneficiaries (ARBs), granting them ownership, subject to a 10-year prohibitory period on transfers and certain mortgage restrictions.

6. Practical Considerations for Landowners and Beneficiaries

Consolidation of Landholdings: If a landowner owns several small parcels that each measure under 5 hectares but collectively exceed 5 hectares, the land beyond 5 hectares could be covered by CARP.
Homelots: A farmworker or agrarian reform beneficiary is often entitled to a residential homelot (sometimes up to a maximum area specified by DAR). In practice, these homelots can be a few hundred square meters, but it is a separate consideration from coverage thresholds.
Subdivision and Resale: Some landowners attempt to subdivide land into smaller parcels (like 500 sqm segments) to avoid coverage. This practice, if intended to evade CARP, may be declared invalid. The DAR can still consider the land as a single landholding for coverage purposes.
Documentation: Owners seeking exemption or conversion for land under or over 500 sqm must present official DAR orders (Exemption Clearance or Conversion Order). Municipal or city tax declarations alone are insufficient to exclude property from CARP.

7. Relevant Jurisprudence and DAR Issuances

Association of Small Landowners in the Philippines, Inc. v. Secretary of Agrarian Reform (G.R. No. 78742, 14 July 1989)
- Upheld the constitutionality of RA 6657 and reinforced that the State’s police power can mandate compulsory coverage, subject to reasonable retention limits.
Land Bank of the Philippines v. Spouses Arieta (G.R. No. 161834, 7 August 2006)
- Clarifies the valuation of land and the role of Land Bank in compensating covered landowners.
DAR Administrative Orders
- DAR AO No. 1, Series of 1998 (and subsequent amendments): Provides guidelines on the coverage of landholdings, retention rights, and processes for identification and selection of beneficiaries.
- DAR AO on Conversion Procedures (varying series): Stipulates documentary requirements and steps for legitimate land use conversion.
DAR Memorandum Circulars
- Some DAR circulars address subdivided or small parcels, clarifying that the DAR can still consider them covered if done to evade reform.

Key Takeaways

No Single “500 sqm Rule”: CARP coverage does not revolve around a 500-square-meter threshold. Any agricultural land, regardless of size, may be covered if it exceeds the landowner’s retention limit or otherwise falls within the scope of agrarian reform.
Agricultural Classification Is Crucial: Whether a parcel is subject to CARP depends primarily on its classification and use as agricultural land, not just on size.
Retention Limit: The pivotal quantity is the landowner’s 5-hectare retention limit (plus possible child allotments). Anything beyond this is generally subject to compulsory coverage if agricultural in nature.
Exemption & Conversion: Legitimate exemption (forest land, etc.) or DAR-approved conversion are the main ways a land can be excluded from CARP coverage.
Subdivision Doesn’t Necessarily Exempt: Merely subdividing to smaller parcels (e.g., 500 sqm lots) does not automatically exempt the property from coverage if it remains agricultural and over the total retention limit.

In short, the Comprehensive Agrarian Reform Program’s applicability hinges on the land’s agricultural classification and the total landholding size relative to the retention limit. If you (as a landowner) have a single agricultural parcel over 500 sqm, it may or may not be covered depending on your total landholdings, prior reclassifications, valid retention rights, and compliance with DAR regulations. Conversely, if you are a tenant or farmworker on a parcel over 500 sqm, you may have potential rights as a beneficiary if the land is agricultural and above the owner’s allowable retention area. Legal advice and close consultation with the DAR and a property lawyer are strongly recommended for specific concerns.