Morales plans to redistribute underused land amongst the people. Landowners have threatened to withold agriculture produce if the measure is enacted.
Morales has vowed to redistribute 200,000 sq km (77,000 sq miles) by 2011. The bill that would enable this procedure was passed by the lower house of Bolivia's congress yesterday.
The Senate is to vote on this next week.
Only non-producing estates would be redistributed amongst the people, not actively producing areas.