WHEREAS, self-sufficiency in food, particularly beef, is one of the primary concern of the State;

WHEREAS, beef production is still low, despite the existence of numerous pasture leases all over the country;

WHEREAS, in order to increase the supply of beef, it is necessary to embark on large-scale ranching projects over wide grazing lands;

WHEREAS, the Constitution authorizes the determination by law of the size of lands of the public domain which may be developed, held or acquired by, or leased to, any qualified individual, corporation, or association, taking into account conservation, ecological, and developmental requirements of the natural resources;

WHEREAS, the Constitution established area limitations for alienable lands of the public domain, namely: agricultural, industrial or commercial, residential, and resettlement lands, and for timber or forest lands, but not for mineral and grazing land, and such other classes of lands as may be provided by law.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby decree and order:

SECTION 1. The President of the Philippines upon the recommendation of the Secretary of Natural Resources shall determine, define, designate, and reserve any lands of the public domain of any classification, as grazing lands or large-scale ranching projects.

SEC. 2. If, in his opinion, the public interest and the purpose of the grazing reservation so require, the Secretary of Natural Resources may recommend to the President such areas not available for any kind of public land disposition or alienation, logging operations, or mining exploration or exploitation.

SEC. 3. The Secretary of Natural Resources may enter into a special lease-development agreement with any qualified Filipino citizen or corporation, sixty percent (60%) of the capital stock of which is owned and controlled by Filipino citizens, for the development of areas so reserved into suitable grazing lands and the utilization thereof for large-scale ranching projects.

SEC. 4. No individual or private corporation may held grazing reserved in excess of 50,000 hectares.

SEC. 5. The Secretary of Natural Resources may authorize the developer-lessee to enter into a service contract with any foreign entity for financial, technical, management, or other forms of assistance, for the development and utilization of the authorized area.

SEC. 6. The Secretary of Natural Resources shall clear grazing reserves of settlers and occupants, reimburse them for their improvements and livestock, and resettle them to suitable relocation sites.

SEC. 7. The initial sum of FIVE MILLION PESOS (P5,000,000.00) is hereby appropriated out of the General Fund for the above purposes: Provided, That the Department of Natural Resources, or the agencies under the said Department, with prior approval of the Secretary of the Department, may use saving in the appropriations, or any portion of such appropriations as well as any fund allocated to it, for the foregoing purposes.

SEC. 8. The Secretary of Natural Resources shall issue the necessary rules and regulations to implement this Decree.

SEC. 9. All laws, decrees, orders, rules and regulations or provisions thereof inconsistent with this Decree are hereby modified or repealed accordingly.

SEC. 10. This Decree shall take effect immediately.

Done in the City of Manila, this 20th day of December, in the year of Our Lord, nineteen hundred and seventy-four.