In a northern Philippine town long defined by agricultural hardship, a small farming community is quietly transforming smallholder farming, proving that with collective effort, even the most modest beginnings can lead to lasting change.
Braving the cycles of drought and flood, fluctuating prices, and limited institutional support, the Solana West Farmers Cooperative (SOWESFACO) is quietly but steadily reshaping the story of smallholder farming, turning subsistence growers into market players, improving livelihoods, and planting the seeds of long-term sustainability.
About three decades ago, the cooperative was founded by 23 pioneering members who each contributed P5,000, pooling a modest capital of just P115,000 to start what would become SOWESFACO.
That modest capital laid the foundation for what would eventually grow into a model of self-reliance and collective empowerment. Many of its original members were tenant farmers with little to their name, let alone a few hectares of land, but they shared a strong desire to chart a better future.
Strengthening farmers through financial access
Access to formal financing was, and remains, a major hurdle for rural farmers, many of whom are considered high-risk borrowers by banks.
The Land Bank of the Philippines (LandBank) has been the sole financial institution offering opportunities to Solana farmers since their partnership began in 1996, spanning decades of support and collaboration.
SOWESFACO general manager Christopher M. Barlaan credits the bank’s consistent support for enabling the cooperative to scale up its services and impact.
“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.
One of the cooperative’s most impactful innovations, made possible through LandBank’s flexible financing, is its “Payment in Kind” policy, which allows farmers to repay loans using harvested palay instead of cash. This system not only gives farmers greater control over their income but also shields them from exploitative pricing by middlemen.
“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,” Barlaan said.
The partnership has also supported significant investments in infrastructure. With LandBank’s help, SOWESFACO has upgraded its post-harvest facilities, including drying and milling equipment, enhancing rice quality and enabling the cooperative to meet the demands of larger markets.
In parallel, the co-op continues to build capacity through regular training in farm management, financial literacy, and cooperative governance. It also provides crop insurance to help members recover from natural disasters and other unexpected shocks.
With firm roots and expanding reach, SOWESFACO is now setting its sights outside Solana, aiming to connect with broader domestic and international markets.
Creating access to markets and new opportunities
One of the most transformative aspects of SOWESFACO’s work lies in its ability to connect farmers to better markets. For decades, smallholders in Solana had little choice but to sell to traders at the farmgate, often at prices barely enough to cover costs.
The cooperative has changed that by consolidating members’ produce, negotiating fairer deals with institutional buyers, and exploring value-adding opportunities.
Through collective marketing, farmers now enjoy higher and more stable incomes. The cooperative has also invested in post-harvest facilities and basic processing equipment, allowing members to reduce losses and increase product quality.
Building resilience through innovation
Like many rural cooperatives, SOWESFACO was not spared by the disruptions of the COVID-19 pandemic. Movement restrictions, supply chain interruptions, and market closures threatened to undo years of progress. But the crisis also became a catalyst for change.
The cooperative began exploring digital tools for internal coordination, loan tracking, and even connecting with buyers through social media and online platforms.
“The pandemic forced us to look beyond what’s familiar. We realized that even in the fields, there’s room for technology and innovation,” Barlaan recalled, admitting that digital transformation remains a work in progress, with uneven access to technology in the community.
Today, SOWESFACO counts several hundred active members across multiple barangays. Many of them have stories that echo a shared arc—from marginalization to empowerment.
Members who once struggled to send children to school now have children finishing college. Families who once rented land are now landowners. Women, often invisible in traditional farming structures, have taken leadership roles in both cooperative operations and the broader community.