DEPARTMENT OF AGRARIAN REFORM (DAR) GUIDELINES GOVERNING THE PROMOTION OF AND SUPPORT TO COOPERATIVES AND OTHER SELF-HELP ORGANIZATIONS FOR BENEFICIARIES OF THE COMPREHENSIVE AG…

I
Rationale

The success of the Comprehensive Agrarian Reform Program not only
depends on the distribution and transfer of lands to farmer
beneficiaries, but also and more importantly, on the provision of
necessary support services and an organizational vehicle that will
propel the beneficiaries to attain economic independence and
self-reliance.

Such prescription for the CARP has been embodied in Executive Order
129-A and Republic Act 6657 which provide, among others, that aside from
land distribution, the DAR, in cooperation with other government and
non-government entities, shall extend support in the organization and
development of agrarian reform beneficiaries. Towards this end, these
guidelines are hereby adopted.

II
Objectives

A. To provide a common framework in the promotion of and support to
cooperatives and other self-help organizations for the beneficiaries of
CARP.

B. To clarify the role of DAR in the promotion of and support to cooperatives among CARP beneficiaries and;

C. To guide the various DAR units in planning and programming their
cooperative-related activities in identified CARP areas wherein a CARP
Cooperative Development Program shall be developed in collaboration with
the cooperative movement, Non-government Organizations (NGOs) and
People’s Organizations (POs).

III
Definition of Terms

The following terms are operationally defined:

CARP cooperative — refers to a business enterprise
owned, controlled and patronized by the small farmers, farmworkers, or
other agrarian reform beneficiaries, organized voluntarily for purposes
of satisfying a common need or needs and whose costs, risks and benefits
are equitably shared among themselves.  It may be for a single purpose
like a specialized cooperative for procurement, production, credit,
service or multi-purpose. Cooperatives may also be classified in terms
of their levels of operations such as:

Primary cooperative — which is a cooperative composed of individuals and directly providing services to its members and non-members;

Secondary cooperative — which is a federation of
primary cooperatives rendering services to its member and non-member
cooperative in terms of cooperative education and training, cooperative
audit, consultancy and other business functions such as inter-coop
trade;

Tertiary cooperative — which is a confederation of
secondary cooperatives servicing various types of registered
cooperative operating in different parts of the country in terms of
human resource development, cooperative funds mobilization,
institutional linkages, research and other business functions.

Promotion — refers to a process involving various
activities in order to inform and advocate people to move towards
certain action like organization and development of cooperatives.

Support — refers to financial and technical
assistance which DAR may provide to NGOs/POs, cooperatives and other
self-help organizations in relation to CARP cooperatives.

Non-government organization (NGO) — refers to a
broad category of private non-profit organizations that is committed to
the task of socio-economic development and established primarily for
service.

Self-help organization — refers to organization
composed mainly of small farmers, farmworkers or other agrarian reform
beneficiaries who, though lacking the formal requisites for registration
as cooperative, nevertheless voluntarily organize themselves and
operate according to standard cooperative principles. Bayanihan or
pre-cooperative groups are considered to be self-help organizations.

Beneficiaries — the beneficiaries of CARP as
defined under Section 22, Chapter VII of R.A. 6657 are as follows:
agricultural lessee and share tenants, regular farmworkers, seasonal
farmworkers, other farmworkers, actual tillers or occupants of public
lands, collectives or cooperatives of the above beneficiaries, others
directly working on the land, children of landowners who are qualified
under Section 6 of R.A. 6657 and beneficiaries under P.D. 27 who have
not sold, disposed or abandoned their lands.

People’s organizations (PO) — refers to a
voluntary organization composed and operated directly by the small
farmers, farmworkers or other agrarian reform beneficiaries established
primarily for mutual assistance, and other social needs. It may either
be registered or not registered. Farmers Associations ( FAs)/Farmer’s
Organization ( FOs) are example of POs.

IV
Basic Policy Directions

A. The DAR shall not engage in the organization and development of
cooperatives. Its role shall be ” assistory,” “facilitative,” and
“supportive” of the organization and development of beneficiaries’
cooperatives.  This means that DAR shall operate on a principle of
subsidiarity where necessary assistance can be extended in the form of
training, research and support services.  DAR shall facilitate the NGOs
access to financial, technical and other resources.

B. Cooperative organization and development shall be undertaken by
the cooperative sector, non-government organizations and people’s
organizations with demonstrated technical capability.

C. In the planning and monitoring of the delivery of support
services, the DAR shall involve the NGOs, POs, cooperatives and other
self-help organizations.

D. In areas where there are no cooperatives, POs, and NGOs, DAR shall
take a more aggressive promotional role in raising the level of
consciousness of the beneficiaries on the advantages of organizing
farmers’ cooperatives.

E. In the promotion of and support to cooperatives, the DAR shall uphold the following principles:

—      Voluntary membership without artificial restriction or discrimination;

—      Democratic administration and control;

—      Limited interest on share capital;

—      Surplus, if any, should be utilized or distributed in an equitable manner;

—      Continuing education; and

—      Cooperation with other cooperatives at local, national and international levels.

F. The evolutionary process of forming a cooperative shall be
observed and the decision of the beneficiaries to join an existing one
shall be respected.  However, if there are viable and successful
cooperatives in the community, the beneficiaries shall be encouraged to
join these cooperatives.

V
Operational and Other Support Activities

To operationalize the basic policy directions, the promotional and
other support activities of DAR at various levels shall be focused on
the following:

A.      Coordination/Linkages/Promotional Activities — 1.
Establish linkages or work with the cooperative sector and NGOs in their
respective level and identify areas for possible collaboration, e.g.,
organization and development of cooperative, trainors’ training on
cooperative, development of information materials, etc.

2.            Provide assistance in arranging consultations,
dialogues, fora, meetings, workshops, immersion programs or exchange of
cooperatives success stories/experiences among NGOs, organized
cooperatives and farmers organizations ( FOs) for the purpose of
surfacing specific problems, recommendations, learnings, and insights
which could help the cooperative sector.

3.            Identify groups of farmer-beneficiaries or farmer
organizations who signify interest in forming cooperatives and establish
their linkage with professional cooperative groups who are in charge of
cooperative organizing and training.

4.            Encourage farmer — beneficiaries to organize
themselves into ” Bayanihan” or self-help organizations for eventual
development into full-pledged cooperatives.

5.            Follow-up existing and newly organized cooperatives
of beneficiaries and, in coordination with government agencies and
NGOs, facilitate the provision of necessary services to help them attain
self-reliance.

B. Orientation Training of DAR Personnel — Conduct
orientation training on the basic concepts, principles and practices of
cooperatives for DAR personnel involved in the promotion and support to
cooperatives and other self-help organizations.

C. Information Dissemination — Assist NGOs and organized
co-operatives at various levels in the conduct of information
dissemination regarding latest developments about the cooperative sector
through print and mass media.

D. Registration Assistance — Link-up or work with
appropriate government entities to facilitate the formal registration of
institutions organized by CARP beneficiaries.

E. Research — Conduct research work in cooperative
organization and development which could be utilized in information
dissemination and could serve as basis for improvements and/or
formulation of policies.

F. CARP Cooperative Planning Workshop —

1.       The DAR-Support Services Office (SSO) through the Bureau
of Agrarian Reform Beneficiaries Development (BARBD) and Bureau of
Agrarian Reform Information and Education (BARIE) shall conduct a
workshop to discuss the guidelines on the promotion and support to
cooperatives to be attended by key staff from the DAR-Regional Offices,
other government representatives, NGOs, and POs involved in cooperative
development.

2.       In coordination with Field Operation Office (FOO), SSO
through BARIE and BARBD shall conduct provincial planning workshops to
be attended by DAR provincial and municipal staff, GO representatives,
NGOs and POs. The outputs of these workshops are:

—           Assessment of the capability and commitment of POs,
FOs, cooperatives and other self-help organizations as conduits of
support services in their area of operation.

—           Provincial CARP cooperative development plan which
will reflect the cooperative promotion activities and other support
services sector of DAR, and the cooperative organization and development
activities of NGOs and POs.

—           Projects and programs which NGOs and POs would like to be implemented.

The development plans shall be submitted to SSO through BARBD to
serve as bases for inclusion in the DAR budget to support the program.

For monitoring and evaluation purposes, quarterly report on the
implementation of the program shall be submitted by FOG to SSO through
BARBD.

VI
Repealing Clause

All orders, circulars and other issuances inconsistent herewith are deemed repealed, amended and/or modified accordingly.

VII
Effectivity Clause

These Guidelines shall take effect ten (10) days after publication in two (2) national newspapers of general circulation.

Adopted: 15 June 1990

(SGD.) BENJAMIN T. LEONG
Acting Secretary