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Showing posts with label land bank. Show all posts
Showing posts with label land bank. Show all posts

Thursday, August 14, 2025

SOWESFACO: How Solana’s West-Side Farmers Turned Grit into Growth

If you drive west from Tuguegarao and roll into Solana, Cagayan, you’ll find a patchwork of rice fields,  corn plots, and backyard fruit trees stitched together by one quiet powerhouse: SOWESFACO, short for Solana West Farmers Cooperative. It’s the kind of cooperative that starts as a conversation under a mango tree and ends up changing how families send kids to school, how fields get planted on time, and how a whole community thinks about the future.

From “tingi-tingi” to teamwork. SOWESFACO began with a simple problem: farmers selling produce piecemeal, paying high middleman rates, and struggling to buy inputs when they actually needed them. The cooperative model flipped the script. By pooling purchasing power, members started getting fairer prices for fertilizer and seed; by bulking their harvests, they negotiated better farmgate rates. What used to be “kanya-kanya” (everyone for themselves) became a steady rhythm of shared calendars, shared logistics, and shared wins.

What SOWESFACO actually does (and why it works):

*Consolidated input buying: Members pre-book fertilizer, seeds, and fuel at wholesale rates, cutting costs and reducing last-minute scramble.

*Mechanization services: A small fleet—think hand tractors, transplanters, threshers, and a combine harvester schedule—reduces labor bottlenecks and keeps planting/harvest windows on track.

*Post-harvest handling: Clean, dry, store, and sell—SOWESFACO’s drying and storage capacity keeps moisture levels in check and quality consistent, which means better prices and fewer rejections.

*Market matching: Instead of hoping buyers swing by, the coop lines up deliveries to institutional buyers, rice traders, and local retailers, smoothing out cash flow.

*Financial services: The cooperative runs a modest savings-and-loan window for members, with seasonal repayment cycles aligned to harvests. That “cash when you plant” and “pay when you harvest” timing is a game-changer.

Real-life ripple effects

*Income that stretches: Lower input costs plus better selling prices mean the same hectare now pays for school fees, medical checkups, and a little cushion for emergencies.

*Time back to families: With mechanization and coordinated workdays, members spend less time chasing labor and more time at home or tending to side ventures (banana, mungbean, or free-range poultry).

*Skills on the rise: Regular trainings—on financial literacy, climate-smart farming, and basic enterprise management—have turned once-hesitant members into confident planners who can read a balance sheet and a weather map.

*Youth not leaving (as much): The coop’s small scholarships, digital record-keeping, and agri-entrepreneurship clubs make farming feel less like a dead end and more like a viable business. You still hear the lure of the city, sure, but you also see motorbikes loaded with produce, barcode labels on sacks, and teens learning spreadsheets for inventory.

Community wins you can see

*Local food security: When typhoons complicate supply chains, SOWESFACO’s stock and storage capacity stabilize rice and corn supply for nearby barangays.

*Micro-enterprises spun off: A side hustle in rice retailing, local milling partnerships, and snack-making (corn chips, banana cue packaging) gives non-farm family members income streams.

*Women in leadership: From credit committees to quality control, women call shots that keep the coop honest and the books clean. It’s practical and powerful.

*Shared infrastructure care:  Because the coop depends on passable roads and working irrigation, it champions community cleanups, drainage unclogging, and watchdogging repairs after storms.

The secret sauce: partnerships and government support

SOWESFACO’s story isn’t solo. It’s a braid of farmer grit and developmental interventions from agencies that bet on organized groups:

*Department of Agrarian Reform (DAR):

-ARBO development & capacity building, cooperative governance, bookkeeping, and enterprise planning sharpened SOWESFACO’s systems.

 -Common service facilities & enterprise grants, support for dryers, small warehouses, and packaging tools tightened quality control and cut losses.

 -Market linkage under programs like PAHP, connecting to institutional buyers turned once-sporadic sales into scheduled deliveries.

*Department of Agriculture (DA) & RFO II:

-RCEF mechanization & training, access to equipment and farmer field schools boosted yields and timeliness of operations.

 -Seeds and soil health interventions, certified seed distribution and soil testing improved input efficiency and resilience against pests and drought spells.

 -Farm-to-market coordination, aligning calendars with logistics support means fewer delays from field to buyer.

*DTI (Department of Trade and Industry):

-Shared Service Facilities (SSF) and product development, better packaging, labeling, and quality standards helped SOWESFACO sell beyond the barangay.

 -Mentoring on costing and pricing, so members finally price products with margin, not guesswork.

*DOST (Department of Science and Technology):

-SETUP-style upgrades, moisture meters, testing kits, and layout improvements reduce post-harvest loss and ensure consistent quality.

 -Food safety advisories, for rice retailing and value-added products, helping the coop comply with standards.

*LGU Solana & the Province of Cagayan:

-Local grants, business permits streamlining, and data sharing, faster paperwork, better access to municipal cold rooms or multipurpose halls, and inclusion in trade fairs.

 -Disaster prep & recovery support, pre-positioning tarps, fuel, and drying solutions when typhoons loom.

*Financing partners (e.g., LANDBANK, ACPC-linked conduits, microfinance):

-Working capital and equipment loans, structured repayment aligned to crop cycles keeps operations moving without predatory interest.

*Financial literacy tie-ins, coaching on cash flow and risk management reduces default and teaches members to plan ahead.

Climate smarts, because Cagayan knows weather.

SOWESFACO takes typhoons seriously. Members track weather advisories, adjust planting windows, and keep emergency tarps and fuel. The coop also keeps a contingency fund for quick repairs on dryers and roofs after storms.

Digital steps without the tech headache.

Nothing flashy, just practical. The coop uses phone-based group chats for machine scheduling, a simple spreadsheet (and later, a cloud sheet) for inventory and loan tracking. In June 2025, SOWESFACO was named among nine cooperatives to benefit from the Digital Farmers Program (DFP) under F2C2—an initiative by ATI-RTC II, DA-RFO 2, PLDT, and Smart. This aims to improve digital literacy and access to modern technologies.

Governance that people trust.

Transparent books. Posted price boards. Regular general assemblies with “mystery math” explained plainly (what came in, what went out, what’s next). Election rules that actually get followed. These little, boring disciplines are the reason big, exciting things keep happening.

What’s next.

*Expanded storage and solar-assisted drying to reduce moisture-related losses during the wet months.

*Contract growing for value chains (feed corn, specialty rice varieties) with guaranteed offtake and quality premiums.

*Youth incubators for agri-digital services, inventory apps, drone mapping partners, and e-commerce pilots for milled rice and snacks.

*Insurance mainstreaming so every member is covered for weather and price shocks, not just the few who remember the paperwork.

The bottom line.

SOWESFACO shows what happens when farmers organize well, match that discipline with the right equipment and training, and plug into a web of supportive programs. The result isn’t just bigger harvests—it’s steadier income, sturdier families, and a community that can look a typhoon in the eye and say, “We’ve planned for this.” In Solana, that’s not a slogan. It’s Tuesday. In other words, SOWESFACO’s achievements, resilience, cooperation, and preparedness, aren’t just special events they put on a poster; they’re part of the routine, as normal as a Tuesday in the calendar.

 

Sunday, July 6, 2025

Court Orders Government to Pay ₱28.48 Billion to Hacienda Luisita

In a landmark ruling, the Court of Appeals (CA) has mandated the Philippine government to compensate Hacienda Luisita Inc. (HLI) with ₱28.48 billion for 4,500 hectares of land redistributed under the Comprehensive Agrarian Reform Program (CARP). This decision overturns a previous valuation of ₱304 million by the Tarlac Regional Trial Court, which the CA deemed insufficient and not in line with Section 17 of the CARP law, emphasizing the need for "real, substantial, full, ample, just and fair" compensation.


The Department of Agrarian Reform (DAR) and the Land Bank of thePhilippines (LBP) were directed to pay the amount as of April 30, 2025, with interest accruing until full payment is made. However, LBP has clarified its non-liability, stating it was removed as a party to the case in 2024 and serves solely as a custodian of public funds.

The DAR has filed a motion for reconsideration, arguing that the CA's valuation did not adequately consider the factors outlined in the CARP law. If denied, the department may elevate the case to the Supreme Court.

This ruling is the latest development in the protracted legal battle over Hacienda Luisita, a sugar estate owned by the Cojuangco family. The Supreme Court had previously ordered the distribution of the land to farmer-beneficiaries in 2012, with compensation to be based on the 1989 land valuation.

As the case continues, it remains a focal point in discussions about land reform and equitable compensation in the Philippines.

  • The case revolves around the just compensation owed to HLI for lands distributed to farmers under CARP. 

  • The Previous Ruling:

    The Tarlac City Regional Trial Court (acting as a Special Agrarian Court) previously affirmed a valuation of P304 million plus interest, set by Landbank and adopted by DAR. 

  • The CA's Decision:

    The CA ruled that this valuation was insufficient and ordered a higher payment based on valuation guidelines outlined in Republic Act 6657, taking into account factors like actual production data and delayed payment. 

  • Landbank's Position:

    While Landbank acknowledges the CA's decision, it emphasizes that the ruling is not yet final and that it will comply with any final court directives. 

  • DAR's Role:

    DAR has already filed a motion for reconsideration and is awaiting a resolution. If the motion is denied, DAR may elevate the case to the Supreme Court. 

  • Significance:

    This decision is significant because it addresses the long-standing issue of land distribution at Hacienda Luisita and the fair compensation owed to the landowner. It also highlights the complexities involved in determining just compensation in agrarian reform cases. 




Monday, June 30, 2014

ARBOs in Cagayan province granted P8.6M APCP loan

There are at least five agrarian reform beneficiaries’ organizations (ARBOs) in Cagayan province who have applied for loan services from the DA-DAR-LBP Agrarian Production Credit Program (APCP) to finance crop production that will expand agri-enterprise and livelihood projects of their members.
Three of these ARBOs’ applications have been approved as of June 2014, namely: (1) Bical-Baliuag ARB MPC in CABICA Agrarian Reform Community (ARC), Penablanca, Cagayan with a total loan release of P3,300,000.00 for agricultural production loan on corn production benefiting 54 member-ARBs; (2) Caagaman ARC Multi-Purpose Cooperative in Caagaman ARC, Aparri, Cagayan with a loan release of P1,300,000.00 for agricultural production loan on rice production benefiting 60 member-ARBs; and (3) Aparri Valley of Jothbath MPC in Seabreeze ARC, Aparri, Cagayan with a loan release of P4,000,000.00 for agricultural production loan on rice production benefiting 130 member-ARBs.
The other ARBOs who have similarly applied for loan under the APCP but are still awaiting the approval thereof are: Bugnay MPC in the Sabung ARC, Tuao, Cagayan with a loan application of P3,000,000.00 for agricultural production loan on rice production to benefit 54 member-ARBs and Cabayabasan Farmers Cooperative in Nueva Segovia ARC, Lallo, Cagayan with a loan application of P1,500,000.00 to benefit 58 member-ARBs.
According to data earlier disclosed by Mr. Virgilio M. Acasili, Provincial Agrarian Program Reform Officer II (PARPO II) of Cagayan-Batanes provinces, only 57% of farmers have access to credit from financing institutions; that one in three ARBs in ARCs is in need of credit; that new ARB organizations may still not qualify under CAP-PBD and LBP regular lending program; that some ARB organizations still require organizational strengthening to make them credit worthy; and that for these reasons the DA, DAR and LBP have to pool resources and expertise to help ARBs access affordable credit, development assistance and marketing support. 
Sometime in 2012, PresidentBenigno S. Aquino, in line with his commitment to ensure ample support for Agrarian Reform Beneficiaries (ARB instructed the Department of Budget and Management (DBM) to release P1.0 billion to the Department of Agriculture (DA) for the nationwide implementation of the Agrarian Production Credit Program (APCP).
The release was made chargeable against the 2012 General Appropriations Act and is in accordance with a five-year Memorandum of Agreement (MOA) signed by the DA, the Department of Agrarian Reform (DAR), and Land Bank of the Philippines. It will provide much-needed credit assistance to farmer-beneficiaries under the agrarian reform program.
Under the MOA, the DA will place the P1-billion fund with Land Bank, P300 million of which will be allocated exclusively for Negros Occidental. The total fund will be used to support the credit requirements of ARBs or ARB household members for their individual or communal crop production projects including  agri-enterprise and livelihood activities.
Through the program, the DA will provide basic support and services, such as marketing assistance and technology packages to qualified ARB organizations (ARBOs). Meanwhile, DAR will be at the helm of identifying eligible ARBs or ARB household members to Landbank. The agency will also provide parallel institutional development assistance to participating ARBOs to help them graduate them to regular lending programs.
DAR will also provide capability-building assistance to beneficiaries, as well as professional management services and facilities support, including those for farm equipment, postharvest facilities, and storage, among others.
This capacity-building program is tailored for new and existing ARBs who are yet to avail loans. Adopting a more lenient set of policies and procedures in extending credit, APCP is the vehicle through which financial and technical services shall be delivered to ARBs consisting mainly of credit provisioning and capacity building to ARB organizations.
               Under this program, ARBs in organizations within the top 21 high LAD provinces shall be able to develop their knowledge and competencies in engaging and managing agri-enterprises, as well as upgrade their skills on financial management thereby enhancing their credit worthiness or bankability. /cds

Sunday, October 7, 2012

Iguig ARB Coop receives Php1M loan from Land Bank


The Eastern Iguig Multi-Purpose Cooperative (Eastern Iguig MPC) received a one million peso (Php1,000,000.00) loan from the Land Bank of the Philippines through the Credit Assistance Program for Program Beneficiaries Development (CAP-PBD) of the Department of Agrarian Reform (DAR) for relending purposes to members of the cooperative. A symbolic one-million peso check was awarded by DAR ASEC Jose G. Grajeda on October 4, 2012 during the turn-over ceremony at barangay Sta. Barbara, Iguig, Cagayan.
Farmer-beneficiary members of Eastern Iguig MPC receiving the Php1million loan. 
The Credit Assistance Program for Program Beneficiaries Development (CAP-PBD) was conceptualized to provide credit support to Agrarian Reform Beneficiaries' organizations who cannot yet qualify under the accreditation criteria of government and private financing institutions. The said credit support aims to serve as a venue to develop the ARB organizations' entrepreneurial competence and credit worthiness, leading to their qualification to avail of the different credit windows of financial institutions.
Land Bank and DAR staff.
Each of the thirty-one (31) farmer-beneficiary member of the cooperative can avail P25,000 per hectare for rice production with an interest of two percent (2%) per month payable within one hundred eighty (180) days. /cds


FEATURED POST

DAR hands out e-titles, COCROMs in Ilagan, freeing thousands of Cagayan Valley farmers from land debt

  Ilagan City, Isabela — July 31, 2025. The Department of Agrarian Reform (DAR) distributed electronic land titles (e-titles) and Certific...