Business groups buck agri land conversion moratorium

MANILA, Philippines - Local and foreign business groups collectively opposed yesterday the Department of Agrarian Reform (DAR)’s proposal to impose a two-year moratorium on the conversion of agricultural lands, arguing this would set back the country’s development goals.

In a statement, eight of the largest business organizations in the country expressed apprehension against the imposition of a moratorium on farmland conversion as this could hamper the goal of developing more economic zones, expanding the manufacturing industry, accelerating infrastructure projects and decongesting urban areas.

The groups, composed of the Philippine Chamber of Commerce and Industry, Foundation for Economic Freedom, Makati Business Club, Management Association of the Philippines, Philippine Exporters Confederation, American Chamber of Commerce of the Philippines, European Chamber of Commerce, and Japanese Chamber of Commerce of the Philippines, said the moratorium would also have negative impact on the entry of investments in the country.

“The government should take into account that there are lands classified as agriculture that are low-yielding and unproductive. Preventing the conversion of such lands to more productive uses goes against the principle of allowing the highest and best use of land,” the groups said.

“It will hamper industrialization as agricultural lands, which could be better and more efficiently used as for example, industrial parks or economic zones, are prevented from conversion.  Development of unproductive and idle agricultural land that could be better used for commercial, residential, and industrial uses will also be hampered setting back jobs that can potentially be created in the manufacturing, housing, construction, and retail sectors,” they added.

The business groups also said the planned review and possible revocation of previously approved conversions, stock distribution, and leasehold arrangements is a move contrary to President Duterte’s economic agenda of fostering a favorable investment environment in the countryside as it would raise uncertainty among investors.

“If there is difficulty in securing approval of conversion of agricultural land, the supply of land for residential, commercial and industrial uses will dry up, driving up prices for future homeowners and making housing unaffordable to the poor.  The policy will certainly breed more congestion in crowded urban areas,” the groups said.

Instead of imposing a moratorium on land conversion, the groups urged the government to consider adopting a broader policy framework that will govern land use allocations.

Such policy framework on land use may also administer limits to conversion and expansion of selected uses to ensure that there is balance to meet future demands for food security, housing and shelter, and industry and commerce, the groups said further.

DAR is pushing to impose the moratorium which would be applied to land awarded under RA 6657, PD 27, and other agrarian reform laws.

The National Economic and Development Authority along with the Finance and Budget departments have already rejected the proposal.