The Land Bank of the Philippines on Thursday said the Department of Agrarian Reform (DAR) had asked the Court of Appeals in May to reconsider its order requiring the government to pay just compensation of ₱28.48 billion to Hacienda Luisita Inc. (HLI). The order arose from a Supreme Court ruling mandating the distribution of 4,500 hectares of land under the Comprehensive Agrarian Reform Program (CARP).
In a statement, the Land Bank stressed that the CA decision is not final and executory. “A Motion for Reconsideration was filed by the DAR in May 2025 and awaiting resolution. If denied, DAR may elevate the matter to the Supreme Court,” it said.
Land Bank added it is no longer a party to the case after the appellate court dropped it as respondent in its 30 April 2024 ruling. It also emphasized that any compensation to HLI will be sourced from the Agrarian Reform Fund managed by DAR and funded by the national government.
The controversial ruling, outlined in a 35-page CA decision promulgated on 25 April 2025, has triggered concern over its fiscal policy implications. Critics, including the Federation of Free Farmers (FFF), said the ₱28-billion valuation is “excessive,” noting that prior assessments by the DAR adjudication board and a regional trial court valued the land at only ₱304 million.
Leonardo Montemayor, FFF chairman, urged both DAR and Congress to revisit compensation rules and provisions of the Comprehensive Agrarian Reform Law (RA 6657). “Aside from appealing the verdict, DAR should review its implementing rules on landowner compensation,” Montemayor said.
Militant group Kilusang Magbubukid ng Pilipinas (KMP) also condemned the decision, calling it a form of “continued injustice” that rewards landlords over farmers. KMP chair Danilo Ramos criticized CARP as a “failed” program that turned land reform into a commercial transaction, with farmers “repressed” while landlords “amassed wealth.”
Ramos also pointed out that the ₱28-billion compensation dwarfs the DAR’s entire 2025 budget of ₱11.101 billion, raising concerns over government priorities and the future of agrarian reform funding.
