A 1988 law enabled the government to break up large landholdings that were then sold under easy 15 to 20-year terms to landless tenants in the hope of empowering the impoverished farmers.

But 18 years on, just a million out of three million have economically viable farms, Agrarian Reform Secretary Nasser Pangandaman said.

"Our problem is that unless CARP (the comprehensive agrarian reform program) is extended, the support services would also be abandoned and these farmers might turn around and sell back their farms to their old landlords," said Gerundio Madueno, agrarian reform undersecretary for support services.

Pangandaman said the government has distributed 3.7 million hectares out of the 4.9 millionhectare target. Some 30 percent were acquired from landlords and the rest came from government holdings.

Farmers were then pooled into "agrarian reform communities" of about 300 hectares each.

Each cluster receives P40 million (9,000) worth of support services over three years, after which the cooperatives are supposed to be able to sell their own products and raise capital through the banking system.

Madueno said former commercial farm workers have been more successful than the rest because former landlords ensured ready markets for their produce.

Problem cases abound in remote areas and small islands.

Manila is trying to line up more than 300 million dollars in development aid from the Asian Development Bank, the World Bank and the Japan Bank for International Cooperation to ensure support services for five more years, Madueno said.

Pangandaman said land reform has had some success, with independent studies showing farm incomes rose 28 percent among those with state support. (AFP)