The Market Monitor Minding the Nation's Business
Farmers in the quiet agricultural town of Solana, Cagayan 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.
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.
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 targeted support can deliver both economic returns and lasting social impact, empowering farmers and rural communities across the country.