10/10/2023

FOREST TENURIAL
IN STRUMENTS IN THE
PHILIPPINES

SVEMS ROMMEL S. BAYBAYON

Office of the Undersecretary for Field Operations, DENR

Prepared for PCU-MMEP Class of Doc Jovert Pudan

CON T EN T S
⦿ State of the Philippine Forests

⦿ Issuance of Land Tenure Instrument

⦿ Tree Cutting Permit Issuance

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STATUS OF THE
PHILIPPINE FORESTS

Key Words and Definitions

FOREST
Land spanning more than 0.5 hectare
and a tree canopy cover (or equivalent
stocking level) of more than 10%, with
trees able to reach a minimum height
of 5 meters at maturity in situ.

FORESTLAND
 One of the 4 legal land
classifications
 These are areas with slope of 18%
& above (with & w/o forest)

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.
Key Words and Definitions

LAND COVER
The observed physical and biological cover of the earth’s land
as vegetation or man-made features.

LAND USE
The manner of utilizing the land, including its allocation,
development and management.

Land Cover: Grass

Land Use : Pasture

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Land Cover: Corn plantation

Land Use : Annual Crop

FOREST COVER (2020*)

The forest cover is estimated at 7,226,394 ha (24.09%), out of
which 30.7% (2.22 M ha) is Closed Forest, 65% (4.69 M ha) is
Open Forest and 4.3% (0.311 M ha) is Mangrove Forest.

(94.8%)
(no
30.7% 65% 4.3%
*Initial data from NAMRIA’s 2020 Land Cover
CDLaOtSaED FOREST: Formation where tress in various storey and undergrowth cover a high proportion (>40 percent) of the ground
and do not have a continuous dense grass layer.
OPEN FOREST: Formations with discontinuous tree layer with coverage of at least 10% and less than 40%.
MANGROVE FOREST: Forested wetland growing along tidal mudflats and along shallow water coastal areas extending inland
along rivers, streams and their tributaries where the water is generally brackish and composed mainly of Rhizopora, Bruguiera,
Ceriops, Avicenia, and Aegicera spp.

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Forest cover trends in the Philippines

18
16.9
16 14.9
FOREST COVER (MILLION

14
11.6
12
HECTARES)

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8
7.4 7.2 6.84 7.014 7.226
6

1934 1950 1965 1980 2003 2010 2015 2020

YEAR

 Forestcover forest had increased from 7.014 million hectares in 2015

to 7.226 million hectares in 2020 (an increase of approx. 212,242 ha)
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GOALSOF THE FORESTRYSECTOR

▪ Place all forestlands under sustainable forest management
▪ Sustainably manage watersheds in partnership with stakeholders;
▪ Strengthen resilience of forest dependent communities to climate
change hazards;
▪ Enhance decision making through improved systems on
information management and monitoring and evaluation; and
▪ Place all forestlands under appropriate management
arrangements
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LAND TENURE INSTRUMENT

An agreement entered into by and between the DENR

and a qualified applicant wherein the DENR grants the
Licensee the exclusive privilege to develop, manage,
protect and utilize a specified area of forestland and
forest resources

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List of Land Tenure Instrument (Forestry Sector)

 Integrated Forest Management Agreement (IFMA)

 Socialized Industrial Forest Management Agreement (SIFMA)
 Forestland Grazing Management Agreement (FLGMA)
 Community-Based Forest Management Agreement (CBFMA)
 Special Land Use Permit (SLUP)
 Forest Landuse Agreement (FLAg)
 Forest Landuse Agreement for Tourism (FLAgT) purposes
 Tree Farm Lease Agreement (TFLA)

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Legal Bases
 Presidential Decree No. 705, as amended, otherwise known as the
Revised Forestry Code of the Philippines

• Section 20. License Agreement, License, Lease or Permit.

“No person may utilize, exploit or occupy, posses or conduct any
activity within any forest land (FL), unless authorized to do under a
license agreement, lease or permit.”

• Section 57. Other Special Uses of Forest Lands. “Forest lands, may be
leased for a period not exceeding twenty-five years, renewable upon the
expiration thereof for a similar period or held under permit for the
establishment of sawmills, lumber yards, timber depots or other
beneficial purposes which do not in any way impair the forest resources
therein”.

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Legal Bases
Presidential Decree No. 705, as amended, otherwise known as the
Revised Forestry Code of the Philippines

Section 78. Unlawful Occupation or Destruction of Forest Lands and

Grazing Lands

Any person who enters and occupies or possess, or makes kaingin or for his
own private use or for others, any FL or grazing land without authority
under license agreement, lease, license or permit, or in a any manner
destroys such FL or part thereof, pursuant to the provisions of Section 53
hereof shall, upon conviction, be fined, and imprisoned, and be liable to the
payment to ten (10) times the rental fees and other charges…

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POLICY INITIATIVES UNDERTAKEN

▪ Issuance of the following guidelines to support issuance of LTI

▪ DAO No. 2022-10 (Revised DENR Manual of Authorities of Technical matters) – approval of permits and LTI
are delegated to the DENR Field Offices (REDs/PENROs/CENROs)

▪ DAO No. 2022-01 [Issuance of Gratuitous Special Use Permit (GSUP)]

▪ DAO No. 2021-27 (Issuance of Provisional Agreement)

▪ DAO No. 2020-18 (Promoting Tree Plantation Development and Liberalizing the Harvesting and Transport of
Planted Trees) – no harvesting permit required for as long the activity in accordance with the approved
management plans (e.g. CDMP, CRMF, etc.)

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Integrated Forest Management

Agreement (IFMA)
 A production sharing agreement
entered into by and between the
DENR and a qualified applicant
wherein the DENR grants the
Licensee the exclusive right to
develop, manage, protect and utilize
a specified area of forestland and
forest resources
Legal basis:
DAO 99-53 dated December 23, 1999
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DURATION & SIZE

DURATION OF THE
SIZE OF THE AREA
AGREEMENT
 25 years  Minimum of 500 ha. and the
renewable for maximum size may depend
another 25 years upon the capability of the
applicant to develop and
manage to productive
condition, but not to exceed
40,000 hectares

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AREAS AVAILABLE
 Open and denuded lands, brushlands, degraded residual natural forest;
 Areas covered by cancelled/expired Forest Land Grazing Agreement or Pasture Permits or leases;
 Government reforestation projects or portions thereof found to be more suitable as IFP;
 Production residual natural forest
 Areas under cancelled and expired TLAs; provided, areas under existing TLAs maybe allowed for
conversion to IFMA

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QUALIFIED APPLICANTS
 Filipino citizen of legal age;

 Partnership, cooperative or corporation

whether public or private, duly registered
under Philippine laws;

 TLA holders who have signified their

intention to convert their TLA prior to the
expiry of the TLA, provided that they
showed satisfactory performance and have
complied with the terms and conditions of
the TLA and pertinent rules and regulations

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DEVELOPMENT REQUIREMENTS
 Submission of a Comprehensive Development
and Management Plan (CDMP) within one (1)
year from the date the IFMA was awarded
 Submission of Environmental Clearance i.e.
ECC
 Planting principally of timber-producing
species including rubber, durian and/or non-
timber species like rattan and bamboo;
 10% of the area may be devoted for
agricultural purposes
 The total plantable area shall be planted
based on the rotation period of the plantation
species but not exceeding 12 years

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GOVERNMENT SHARE & TRANSFER

GOVERNMENT
TRANSFER OF IFMA
SHARE
 Government share shall  IFMA Holder may transfer,
be negotiated exchange, sell or convey the
between the holder and
the DENR immediately IFMA or any rights therein or
following the approval any assets used in connection
of the CDMP therewith, if authorized by the
Secretary

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IFMA NATIONWIDE AS OF JULY 2022

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Historical Overview of CBFM in the

Colonial Period PioneeringPPh lidp piIn
eriio nte
egs
ration and
Consolidation
Institutionalizati
on and Expansion
Punitive  Adopted 3 major Pneorfiotwdo main
 Adoptio
people- oriented people oriented forestry  Adopted CBFM as
Approach towards forestry programs, program, namely, the the national
forest Forest Occupancy Integrated Social strategy towards
governance, but Management Forestry (ISF) sustainable forestry
(FOM), Family and social justice.
communities were Program and  Granting of CBFM
Approach to Community
granted privilege Reforestation
Agreement to
to use forest Forestry Program. qualified upland
(FAR), and communities
 Issuing Certificate of
products without Communal Tree Stewardship Contract  CBFM integrates
charge for Farming (CTF). (CSC) and Community all people-
 People were labor Forest Stewardship
personal providers
oriented forestry
Agreement (CFSA) programs and
consumption later  Deforestation is not
projects of the
on. only technical but
socio- political in government.

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Community-Based Forest Management

(CBFM)
The strategy to improve the well-being of forest-
dependent communities while ensuring sustainable
management, rehabilitation, and protection of
forestlands and the resources therein, through the
active participation of stakeholders

Any forest development program which adopts the

CBFM Strategy as its core concept.

An Agreement entered into by between the

government and local community, represented by
the People’s Organization, as forest managers,
which has a term of twenty-five (25) years and
renewable for another twenty-five (25) years.

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LEGAL BASES
 Executive Order No. 263 dated 19 July 1995 (Adopting CBFM
as the National Strategy to ensure sustainable development of
country’s forestlands resources & providing mechanisms for its
implementation)

o DENR Administrative Order (DAO) No. 1996-29 dated 10

October 1996 (IRR of the implementation of EO No. 263
or the CBFM Strategy)

 Executive Order No. 318 dated 09 June 2004 (Promoting

Sustainable Forest Management in the Philippines)
o DENR Administrative Order (DAO) No. 2004-28 dated 25
August 2004 (Revised IRR of the implementation of EO
No. 263)
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CBFM OBJECTIVES
 Sustainable management of
forest resources;
 Social justice and improved
well-being of local
communities; and
 Strong partnership among
local communities and the
DENR.

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Stages of CBFM Implementation

• Establishing Institutional
Linkages and Intensifying • Validation of
Information, Education Potential CBFM
and Communication (IEC) Participants
campaigns in Support of • PO Formation and
CBFM Community
• Identification and 2. PO Organizing
Delineation of CBFM Sites 1. Formation • Issuance of Tenure
• Processing of Conflicting Instrument
Claims Preparator & provision
y Stage of security
of tenure

4.
Implemen- 3. Planning
• Operationalizing the CRMF
and 5-YWP
tation Stage • Preparation and
• Development and Management Affirmation of
of CBFM Areas
• Forest Protection and
Stage Community Resource
Conservation
Management Framework
(CRMF) and approval of 5-
• Harvesting, Processing,
Transporting and Marketing of Year Work Plan
Forest Products in CBFM Area

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CBFM at Present
1,971 110,873 Male
CBFM-PO
57,948
Female
1,664,445.50
haTenured Area
CBFM People’s
Members CBFM-PO
Organizations
Members

Multi-
Sectoral 360,779 200
ENR-based Livelihood
ha
developed under
+
and Enterprises
PWaitrhtGnAesr, sNhGiOpss, CBFM-CARP and created and supported
Academe and
NGP
other
stakeholders

Improved 196.31 million Lower

Socio- tons (mt) of Forest
Economic Well- storCeadribnoCnBFM Fragmentation
being Areas in CBFM Areas

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Policy Milestones
 DAO 2022-10: Revised DENR Manual of Authorities
on Technical Matters

 DAO 2021-17: Guidelines for the Affirmation of

Community Resource Management Framework
(CRMF) and Approval of Five -Year Work Plan
(FYWP) of the Holders of Community-Based Forest
Management Agreement (CBFMA)

 DAO 2021-42: Guidelines on the Processing of

Applications for Expansion of Areas Under
Community-Based Forest Management Agreement
(CBFMA) to Cover Adjacent Untenured Areas
within Forestlands

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Policy Milestones
 DAO 2020-18: Promoting Tree Plantation
Development and Liberalizing Harvesting
and Transport of Planted Trees and Tree
Derivatives for Inclusive Growth and
Sustainable Development

 DAO 2021-26: Rules and Regulations

Governing the Establishment, Harvesting
and Transport of Bamboo

 DAO 2021-33: Guidelines Governing the

Tapping, Extraction, Collection and
Transport of Gums, Resins, Oils and
Exudates (GROE)

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CBFM at Present

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CBFM at Present

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 Special Land Use Permit (SLUP)

 Forest Landuse Agreement (FLAg)
 Forest Landuse Agreement for Tourism (FLAgT)

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FOREST LANDUSE
AGREEMENT (FLAg)

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 A contract between the government and a second party

to temporarily occupy, manage and develop in
consideration of a government share, any forestland of
the public domain for specific use
 Area : depends upon the area requirement of the project
 Duration : not exceeding 25 years renewable for another 25 years
 Application Fee : Php 500.00/application
 Approving Authority : Regional Executive Director (per DAO No. 2022-10)

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Government Share/Annual Rental : at least five percent (5%) of

the most recent zonal value of the nearest commercial zone of the
barangay/municipality/city or province, whichever is higher.

 For energy projects : Php. 3,000.00 per hectare and a

fraction thereof, to be increased cumulatively by 10% every
year
Performance Bond : Twice the annual rental or government
share, as the case maybe, but not less
than Php 10,000.00
Required Plan : 25 year Comprehensive Development
and Management Plan (CDMP)

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Forest Landuse Agreement (FLAg)

Examples of Legal Uses of Forest lands
1. Bodega/Warehouse 11. Lumberyard
2. Drydock site/shipbuilding 12. Mineral storage/Crushing Site
3. Industrial Processing Site 13. Mining Waste Disposal Site
4. Herbal/Medicinal Plantation 14. Motor Pool Site
5. Nipa plantation 15. Plant Nursery Site
6. Fish Drying site 16. Power Station Site (e.g. Geothermal plant,
Hydropower Plant, Solar & Wind farms,
7. Other Lawful Purposes (OLP) etc.)
8. Communication Station Site 17. Right-of-Way
9. Landing Site (air strip) 18. School Site
10. Log Pond/ Log Depot Site 19. Water Reservoir or Impounding Dam

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e
Corporation

Wind Energy Development Project

EDC/ Northern Luzon UPC Asia Corp.
Ilocos Norte

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OLP 174 - EDC Well Pad Site and Well Head for Geothermal Steam Production
Valencia, Negros Oriental

EDC- OLP for Geothermal Pipelines that crosses the Okoy River from Well Pad Site
to Sogongon Power Plant Complex
Valencia, Negros Oriental

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e
Corporation

Front, perspective and interior views of OLP No. 009 Warehouse

Apo Cement Corporation Naga City, Cebu

Hull Factory Building and Slipway of OLP No.018, K&A Metal Industries, Inc.
Balamban, Cebu

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e
Corporation

OLP No. 12 - Dry Dock and Shipyard

Colorado Shipyard and Shipbuilding Corporation
Consolacion, Cebu

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FLAg-Geothermal Power Plant Site

Energy Development Corporation (EDC)
Valencia, Negros Oriental

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OLP – Transmission Line (Right-of-way)

National Grid Corporation of the Philippines (NGCP)

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Major difference between SLUP and FLAg

SLUP FLAg
Duration 3 years non 25 years renewable for the
renewable same period

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FOREST LANDUSE
AGREEMENT FOR
TOURISM (FLAgT)
PURPOSES

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Forest Landuse Agreement for Tourism (FLAgT)

FLAgT - a contract between the government and a second party to

temporarily occupy, manage and develop in consideration of a government
share (user’s fee), any FL of the public domain for tourism purposes.
IRR : DAO No. 2004-28 dated August 25, 2004 “Rules and Regulation Governing the Use
of the Forest Lands for Tourism Purposes”
: DAO No. 2009-16 (11-25-09 ) “Amending certain provisions of DAO No. 2004-28”
: DMO 2011-02 (03-15-11) “Requiring TDP and CDMP submission”
Area : depends upon the area requirement of the project
Duration : 25 years, renewable for another 25 years
Approving Authority : Regional Executive Director (per DAO No. 2022-10)
Plans : Indicative Development Plan, Tourism Development Plan
and CDMP

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Forest Landuse Agreement for Tourism (FLAgT)

PROJECTS

 Bathing establishment
 Camp site
 Ecotourism
 Hotel site (inclusive of related resort facilities)
 Other tourism purposes

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Bathing Establishment
Benthel Development Corp.
Cordova Cebu

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on

Bathing Establishment Lease Agreement No. – 0008

Euro Asia Holiday Resort Corp.
Zaragoza Island, Badian, Cebu

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DAO 2009-16 dated. Nov. 25, 2009

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GOVERNMENT SHARE/ANNUAL RENTAL AND PERFORMANCE BOND

Sample Computations
Given: FLAg for Energy Projects

Tenured Area = 56 hectares Government Share/

Annual Rental:
Annual Rental / Government Share = Php 3,000.00/hectare For Energy Projects is
Php3,000/ha and to be
Annual Rental (AR) is computed as follows: increased cumulatively
by 10% every year

AR = 56 hectares x Php 3,000.00 = Php 168,000.00

Performance Bond (PB) is twice the annual rental which is equals to Php 336,000.00

PB = Php. 168,000 x 2 = Php 336,000.00

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GOVERNMENT SHARE / ANNUAL RENTAL

Sample Computations
FLAg for Energy Projects
Adjusted Annual Rental (AR) for Energy Projects
In 2020, the AR is Php. 168,000.00 and a 10% increase on the AR was incurred which is equals to Php.
16,800.00 Hence, the annual rental for year 2021 will be Php. 184,000.00, computed as follows:

Php. 168,000.00 (AR for 2020) Government Share/ Annual

+ Php. 16,800.00 (10% increase in AR for 2021) Rental:
For Energy Projects is
Php 184,800.00 (AR for 2021) Php3,000/ha and to be
increased cumulatively
For 2022, the AR is Php. 203,280.00 which is computed as follows: by 10% every year

Php. 184,800.00 (AR for 2021)

+ Php. 18,480.00 (10% increase in AR for 2022)
Php 203,280.00 (AR for 2022)

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GOVERNMENT SHARE / ANNUAL RENTAL

Sample Computations
FLAgT, and FLAg (Non Energy Projects)
Given:
Area = 1 hectare (10,000 sq.m.)
Zonal value = Php 1,000.00/sq.m.

Annual Rental (AR)/ = 10,000 sq.m x (Php1,000/sq.m x 5%) Government Share/

User’s Fee (UF) = 10,000 sq.m x (Php1,000/sq.m x .05) Annual Rental (Non-
Energy Project):
= 10,000 sq.m x Php50.00/sq.m. at least five percent (5%)
= Php500,000 of the most recent zonal
value of the nearest
commercial zone
AR/UF = Php500,000 per year

Performance Bond (PB) is twice the annual rental which is equals to

Php 1,000,000.00

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Recent Issuance
DAO No. 2021-02: Amending Certain Provisions of DAO No.
2004-28 and DAO No. 2004-59

The government share or user’s fee for SLUP, FLAg, and

FLAgT shall be paid within 30 days upon issuance of
SLUP, FLAg, and FLAgT and annually thereafter on or
before March 31 of the succeeding years. Failure to
pay within the prescribed period shall be subject to 8%
surcharges monthly for late payment of 100% for one
year.

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POLICY INITIATIVES
(PROPOSAL)
CBFMA
▪ Crafted of the Sustainable
Forest Land Management
SLUP FLAgT
Agreement (SFLMA) SFMA
⮚Integrating tenure instruments
into one (One-Tenure System) –
optimize the use of the forest IFMA
land thru multiple use strategy FLGMA

FLAG
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O B J E C T I V E S (SFLMA)

▪ Harmonize various guidelines and streamline

procedures and requirements in the issuance
of forest tenure instruments; and

▪ Encourage investments that diversify forest use,

broaden forest productivity, provide incentives for
maintaining forest cover, allow greater number of
stakeholders to receive benefits and ensure
continuous production of goods and services
through multiple use strategy.

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Agroforestr
y

Special
Uses of Forest
Forest Plantation
Lands
SIX (6)
SFLMA
M AN AGE ME N T
STRATEGIES Protection
Forest Pasture

Ecotourism

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M AN AG E M E N T STRATEGIES U N D E R SFL MA

1. Agroforestry Development –
Establishment of agroforestry systems and
technologies, which may include establishment
of processing plant to encourage vertical
integration

2. Forest Plantation Development–

Establishment of forest stands planted
primarily with timber producing tree species,
including rubber, and/or non-timber species such
as bamboo and rattan, which may include
establishment of processing plants to
encourage vertical integration.

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M AN AG E M E N T STRATEGIES U N D E R SFL MA

3. Pasture Development - Utilization of grazing

land for raising livestock, which may include
establishment of meat and dairy processing
plants.

4. Ecotourism Development – Mgt & devt of

Natural Landscape for protection and
management of natural resources, whereby,
environmental education, aesthetics as well as
economic benefits are fostered and pursued.

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M AN AG E M E N T STRATEGIES U N D E R SFL MA

5. Protection Forest Development -

Conservation, development, and management
of forest lands for forest protection
purposes which may include forest carbon
projects and Corporate Social
Responsibility (CSR) initiatives.

6. Special Uses for Forest Lands - Other

beneficial purposes of Forest land which do
not in any way impair the forest resources

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Proposed Government Share

(GS)
Management strategy Government Share
Forest plantation, agroforestry, 5% of the total gross revenue earned
grazing and ecotourism from management strategies in the
development tenured area based on Annual Audited
Financial Statement or Income Tax
Return, as the case may be,
submitted and duly stamped received
by the Bureau of Internal Revenue
(BIR)
P65,000.00 per hectare or fraction
Special land uses
thereof every year
Special land uses for energy P7,000 per hectare or fraction
purposes thereof, and to be increased
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Proposed Government Share

(GS)
Management strategy Government Share
People’s Organization which Corresponding government share on
entered into development income derived from such activities
contracts other than forest
plantation and agroforestry
development
For SFLMA with two or more The government share shall be the
management strategies sum of the computed amount based
on the combination of the various
strategies
Protection Forest No government share shall be
Development collected

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POLICY INITIATIVES
(PROPOSAL)
▪ Drafting the revised guidelines on
Special Uses of Forestland
(SLUP/FLAg/FLAgT)

⮚Aim to address the immediate issues and

concerns raised by DENR Field Offices
and clients like bidding requirement/
procedures, annual rental/rates,
requirements, among others

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“Healthy forests sustain healthy

people and communities”

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THANK YOU!

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