PRESIDENT Aquino’s family has reached a settlement under which farmers in its Hacienda Luisita Inc. (HLI) will be given the option to retain shares of stock in the corporation or secure parcels of land from a third of the 6,500 hectare plantation up for distribution, an HLI source said.

The deal could set the tone for Mr. Aquino’s policy on agrarian reform. In his State of the Nation Address July 26, the newly elected President did not touch on this key social justice issue that has fueled a communist insurgency for generations.

Mr. Aquino’s cousin, Fernando Cojuangco, 47, HLI chief operating officer, negotiated the deal, which the Inquirer source said would be signed Thursday and then forwarded to the Supreme Court.

The court is to decide on a directive from the Department of Agrarian Reform (DAR) to HLI to parcel out the hacienda to its workers, saying that the stock distribution option (SDO) has failed to improve their lives—the mandate of the Comprehensive Agrarian Reform Program (CARP).

A hearing on the case has been scheduled on Aug. 18.

Under the proposed settlement, the 10,502 farmer-beneficiaries recognized by HLI would be allowed to choose whether to retain their shares under the SDO or surrender these in exchange for land.

“Those who opt for land distribution would be given a financial package and they would no longer be obligated to pay Luisita’s debts. Also, the benefits they received before would not be taken away,” the source said.

The family has said that the hacienda was saddled with unspecified debts.

“Of course, once the land is distributed, it would be up to the beneficiaries to decide what to do with their lots. They could set up a cooperative,” he added.

The source, who requested anonymity because he was not authorized to speak publicly, said that an “agreement in principle” with representatives of four labor unions in the hacienda in talks that began during the presidential election campaign.

“This is a breakthrough settlement agreement,” the source said. “We don’t want to continue with this devastating situation where we continue fighting. There has to be a breakthrough to this impasse.”

HLI spokesperson Tony Ligon, asked for comment, said only: “I can confirm that talks are continuing with legitimate farmer-beneficiaries.”

Read the complete story: Farmers now have option to get land, keep stocks

(Edited by Jose Rey Alo - original submission Thursday, 5 August 2010, 12:34 PM)