On April 23, 2008, members of the House Committee on Agrarian Reform voted for the approval of the consolidated bill extending CARP with reforms. Upon the motion of Cagayan de Oro Rep. Rufus Rodriguez, the Committee voted 16-3 (with 1 abstention) in favor of CARP extension with reforms. Among those who voted against the extension of CARP were Bayan Muna Party List Representative Satur Ocampo, Gabriela Party List Representative Liza Masa, and Anakpawis Party List Representative Crispin Beltran.

The approval of the consolidated bill came with the condition that Section 4 be voted on by the Committee members through a referendum. Section 4 tackles liberalized terms on credit facilities and production loans or liberalized terms on agricultural credit facilities. There were two options for the legislators: 1. The inclusion of the farmland as collateral provision; or, 2. The subsidized credit for ARBs under House Bill (HB) No. 1257 in the consolidated bill.

Farmer groups and agrarian reform advocates have long been opposing the passage of the farmland as collateral bill because it would only lead to the massive bankruptcy and foreclosure of lands. They stress that most of the ARBs are reeling from poverty, receive little or no support services from the government, and are dependent on informal lenders and traders for their production capital. Albay Cong. Edcel Lagman reiterated this position during the congressional hearing, saying that the collateralization of farmlands would spell the end of agrarian reform.

In the referendum conducted last April 29, 2008, the Committee on Agrarian Reform voted 22-3 to include the provision on subsidized credit for ARBs and to remove the provision on farmland as collateral in the consolidated bill.

Based on the results of the approval of the consolidated bill and the referendum on Section 4, the consolidation bill contains the following salient provisions:

1. Extend implementation of land acquisition and distribution (LAD) for five years with a corresponding budget of PhP100 billion;

2. Increase funding allocation for support services—i.e. 60% funding for LAD and 40% funding for support services (from 75-25 in favor of LAD);

3. Provide subsidized credit for ARBs;

4. Provide gender-responsive support services;

5. Recognize the indefeasibility of EPs and CLOAs;

6. Uphold DARAB's Exclusive Jurisdiction on Agrarian Related Disputes;

7. Uphold the legal standing and interest of ARBs; and

8. Create a Joint Congressional Oversight Committee.

Plenary debates on the bill are expected to start once it is calendared in the Order of Business by the House Committee on Rules.

The approval of the consolidated bill and the removal of the farmland as collateral provision are initial victories. But the coalition should sustain its campaigns for the inclusion of other urgent reform measures and the immediate passage of the CARP extension with reforms bill. Among the major reform provisions that should be pushed for inclusion are the following: permanent prohibition on the land use conversion of all irrigated and irrigable lands; removal of non-distributive schemes under CARP (i.e., SDO, VLT and leaseback arrangements); and, provision of additional funds for CARP implementation.

The permanent prohibition on land use conversion of all irrigated and irrigable lands will ensure protection of at least 3 million hectares of irrigated and irrigable lands. This measure would also serve as a strategic step to address food security and self-sufficiency in the country. On the other hand, the removal of non-distributive schemes under CARP will enable ARBs to own the land they are tilling and help them sustain agricultural productivity and rural incomes.

The allocated PhP100 billion in the consolidated bill is not enough to sustain the implementation of agrarian reform within the next five years. Estimates made by the Presidential Agrarian Reform Council (PARC) indicate that the program needs at least PhP260 to 320 billion in order to distribute 1.3 million hectares of land and provide support services to 635,000 prospective ARBs.

If adopted, these additional reform measures would ensure that agrarian reform is fully implemented and social justice is realized. Only then could the passage of the CARP extension with reforms bill be considered a  victory for the small farmers.