- _:::_~~~L...........,.,.,._..,-,_==-·-r=-"=-=n__-:::-~="'=~-==~~ -=:""-"--=~., """=='"'~=!:1:-...l.::l~~-~-·=~• y- Simple transactions of purchase of inputs or sale of crops or products, insofar as they are not linked to any of the above mentioned enumeration, is not considered AVA. This means that AVA's extent is on large scale production. AVAs presuppose the situation when ARBs are already working on the agricultural lands awarded to them, and they need support services for seed, irrigation, capital, technology, facilities and other farm inputs. DAR issued the initial regulation covering AVAs through DAR Administrative Order (DAO) No. 02, Series of 1999 with subject "Rules and Regulations Governing Joint Economic Enterprises in Agrarian Reform Areas." Significantly, the framework for joint economic enterprises under this administrative order ideally provides: "Agrarian reform means not just the redistribution of lands to farmers and farmworkers who are landless, but includes the totality of factors and support services designed to lift the economic status of the beneficiaries. The State is primarily mandated and hereby reaffirms its commitment to provide support services to agrarian reform beneficiaries. Nonetheless, to ensure adequate support services, there is a need for greater private sector participation, both civil society and business, in the development of agrarian reform areas. This shall be facilitated through agribusiness partnerships otherwise known as Joint Economic Enterprises, between beneficiaries and investors. These partnerships or arrangements, which will involve distributed lands, shall be at the option of beneficiaries. Their availability does not mean government will cease to provide agrarian support services. They are merely alternatives that beneficiaries may consider to sustain the operations of distributed farms, or to make their lands productive, thus enable them to enjoy the benefits of agrarian reform." (Emphasis ours) This framework is essentially maintained in the succeeding DAR regulations of AVAs, such as DAO No. 09-06, Series of 2006 and the recent one being DAO No. 04, Series of 2016. 41 This latter regulation reiterated DAR's primary responsibility to safeguard the ARBs' interests all throughout the AVA contract process, i.e. (a) negotiation; (b) contract signing; (c) review and approval; (d) continuous monitoring; (e) amendment, renegotiation, revocation. Some of DAR's specific duties as per DAO No. 04 are shown in Table 6: STAGE OF CONTRACTING ,FERENCE/I PROVISION OF DAO NO. 04, S. 2016 SECTION REMARKS Entering into AVA Sec. 5n crafting the Special Power of Attorney Multiple SPA), it is recommended that the ARBIndividual 'wners consider whether or not they want Owners, Agent e DAR to be an Observer during the an Option egotiation conferences. If sought by the Bs, it is the duty of the DAR Provincial ffice (DARPO) to assist the ARBs in the afting of the SPA, but the substance .ereof must be collectively decided solely y the ARBs. In all instances, whether the SPA was executed with or without the sistance of the DARPO, the Agent of the s shall submit at least one original opy of the SPA to the DAR. The DAR ay, on its own initiative, through a etition, or as the circumstances may arrant, look into whether or not the ARB'wners who signed the same gave their ee, infonned consent. n case the proposed AVA · valves several awarded ands covered by individual LOAs, or tracts of land overed by a Collective LOA, the affected ARBwners have the option to esignate, elect, or appoint an gent, through a written Special Power of Attorney SPA), to negotiate a possible YA with an investor. e obvious purpose is for fficient negotiation. 41 As of July 29, 2016, the new Secretary for Agrarian Reform, Rafael Mariano, issued a directive to hold in abeyance the implementation of DAO No. 04, Series of 2016. He intended to conduct further consukation on the new regulation issued by his predecessor in office, Vrrgilio delos Reyes. It was issued when the new Duterte Administration was about to assume office on June 30, 2016. (Source: http://news.pia.gov.ph/article!view/1141469666421/sec-ka-paengtemporarily-puts-on-hold-implementation-of-rules-on-agri-business-venture-agreements-) (accessed Oct. 14, 2016) 17 -~-==~=-=-..,.--==--~