SOLANA, Cagayan — Farmers in this quiet agricultural town in northern Philippines have long relied on agriculture as their primary source of livelihood despite many challenges. Yet, Solana West Farmers Cooperative (SOWESFACO) is rewriting the story of smallholder farming by turning subsistence growers into market players, improving livelihoods, and fostering long-term sustainability.
Founded nearly three decades ago with 23 pioneering members contributing P5,000 each, SOWESFACO began with a pooled capital of just P115,000. Despite starting small, the cooperative has evolved into a model of self-reliance and collective empowerment with a clear vision to provide financial support, agricultural resources, and opportunities for growth to the farming community of Solana.
Strengthening farmers through financial access
From the outset, SOWESFACO has remained true to its founding principle to help farmers help themselves. By providing affordable credit, access to farm inputs, and a community of shared purpose, the cooperative has enabled its members to build more secure and sustainable livelihoods.
Central to this progress is SOWESFACO’s long-standing partnership with LANDBANK since 1996. SOWESFACO General Manager Christopher M. Barlaan attests to the Bank’s steady backing, which has been crucial in expanding the co-op’s reach and capacity to serve more members.
“LANDBANK has been instrumental in our growth. More than a financial institution, they’re a partner who understands what we’re trying to do for our farmers,” said Barlaan.
Paying back loans in kind
Among SOWESFACO’s most innovative and impactful initiatives is its “Payment in Kind” policy, which allows members to repay their loans with harvested palay instead of cash. This was made possible through LANDBANK’s flexible financial solutions, supporting the co-op’s efforts to create a system that benefits both farmers and the cooperative.
“We believe that progress should be shared. That’s why we make every effort to ensure LANDBANK’s support directly benefits our members. Through our payment-in-kind system, they’re able to repay loans using their harvest, not just cash—giving them more breathing room and better control over their income,” added Barlaan.
By repaying loans in kind, SOWESFACO shields Solana farmers from exploitative market practices where palay prices are often dictated by middlemen, and ensures fair compensation to help farmers retain more of their hard-earned income.
This system also lessens the stress of cash-based repayments during lean seasons, allowing farmers to focus on improving crop yields and productivity.
Building modern, resilient farms
The partnership with LANDBANK has also fueled infrastructure upgrades critical to SOWESFACO’s competitiveness. Investments in post-harvest facilities, including dryers and milling equipment, have significantly reduced losses and improved rice quality — positioning the cooperative to meet the demands of institutional buyers and larger markets.
“With LANDBANK’s help, we’ve been able to modernize our operations. The support has made us more efficient, competitive, and responsive to our members’ needs,” Barlaan said.
This physical expansion has been matched by investments in human capital. The co-op also invests heavily in training programs, including farm management, financial literacy, and cooperative governance, raising the skillset of members to thrive in a changing agricultural landscape.
“LANDBANK helped us not just to support our farmers today, but we’re also preparing them for tomorrow. Through skills training and insurance, we’re helping build more resilient and sustainable livelihoods,” he added.
To reinforce resilience, SOWESFACO also provides insurance coverage for natural calamities and other unforeseen events, protecting its farmers with a crucial safety net during times of crisis.
A vision for wider impact
With its foundation firmly established, SOWESFACO plans to expand its operations and reach a broader market, including potential international buyers. Continued financial and technical support from LANDBANK is expected to help the co-op scale up operations and make a more significant impact on the agricultural value chain.
“Our dream is to go beyond Solana, to bring our rice, which we’ve worked so hard to produce, to other provinces and regions. We want people across the country to recognize the quality of our products and the story of our farmers,” said Barlaan.
Together, SOWESFACO and LANDBANK represent a working model for inclusive, scalable, and sustainable agricultural development — one rooted in long-term partnerships, capacity-building, and trust.
As LANDBANK continues to serve as a steadfast ally to the agricultural sector, stories like SOWESFACO’s underscore how targeted support can deliver both economic returns and lasting social impact, empowering farmers and rural communities across the country.
ABOUT LANDBANK
LANDBANK is the largest development financial institution in the country promoting financial inclusion, digital transformation, and sustainable national development. Present in all 82 provinces in the county, the Bank is committed to provide accessible and responsive financial solutions to empower Filipinos from countryside to countrywide.
