The Leaseback Mode of Agrarian Reform: Strengths, Weaknesses and Options

This policy paper is an assessment of the strengths and weaknesses of
the leaseback agreement (LBA) as an agrarian reform (AR) modality based
on a comparative study of the LBA experiences of worker-beneficiaries
of Dole Philippines (DOLEFIL) in South Cotobato and Filipinas Palmoil
Plantations, Inc. (FPPI), the Filipino-Malaysian corporation which has
taken over the operations of NDC-Guthrie Plantation, Inc. (NGPI) and
NDC-Guthrie Estates, Inc. (NGEI) in Agusan del Sur.

One major agrarian reform (AR) modality in the plantation sector is the
leaseback agreement (LBA), which a cooperative of workers-beneficiaries
in a given plantation may enter into with a multinational or
agribusiness corporation in cases where dividing the land is judged
economically unsound or not feasible.

This policy paper is an assessment of the strengths and weaknesses of
the leaseback agreement (LBA) as an agrarian reform (AR) modality based
on a comparative study of the LBA experiences of worker-beneficiaries
of Dole Philippines (DOLEFIL) in South Cotobato and Filipinas Palmoil
Plantations, Inc. (FPPI), the Filipino-Malaysian corporation which has
taken over the operations of NDC-Guthrie Plantation, Inc. (NGPI) and
NDC-Guthrie Estates, Inc. (NGEI) in Agusan del Sur. Based on this
assessment, the paper further, offers a set of policy choices and
recommendations on LBA as an AR modality. Specifically, it seeks to
give policy options on strategic questions on what should be the future
of LBA in plantations where it has been adopted – retention, abolition
or modification of the terms.

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