Assessment of Saving Behavior of Rice Farming Households in Selected Barangays in Rizal, Palawan, 2022

Date

6-2022

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Christian Paul L. Fang

Committee Member

Christian Paul L. Fang, Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

The study assessed the saving behavior of rice farming households in selected barangays in Rizal, Palawan. Specifically, the study (1) described the socio-economic and behavioral characteristics of rice farming households, (2) analyzed the ability, willingness, and opportunity to save of rice farming households, (3) determined the factors that affect the saving behavior of rice farming households; and (4) recommended possible actions that can be conducted by the local government, financial institutions, and other stakeholders based on the identified results.

A total of 95 respondents were proportionally distributed and randomly selected from the top three barangays with the most rice farming households. Both primary and secondary data were utilized in the study. Descriptive analysis was used to describe the socio-economic characteristics and opportunity to save of rice farming households. Costs and returns analysis was conducted to measure the net farm income, while the Gini-Simpson index was used to analyze the income allocation diversity index based on fourteen (14) categories of expenditure. Multiple regression analysis was employed to assess the significance of selected socio-economic characteristics on the ability to save. Furthermore, binary logistic regression was used to assess the effects of behavioral characteristics on the willingness to save of rice farming households.

The multiple regression analysis results showed that the income level, income allocation diversity index, and confidence in financial management were the significant factors affecting the ability to save of rice farming households. A marginal propensity to save of 6.61 percent was also found. At complete equality of income allocation diversity, annual savings of rice farming households would be PhP19,504.46, while an increase in the level of confidence in financial management increased the level of savings by PhP5,186.68. Analysis results of binary logistic regression showed that the presence of saving goals and a positive opinion on savings positively affected willingness to save. Rice farming households with saving goals are 68.85 percent more likely to be willing to save than those with no saving goals, while rice farming households with a positive opinion on savings were 12.63 percent more likely to be willing to save than those with a negative opinion on savings. This study also found out that rice farming households were only able to save 7.05 percent of their income level, 73.68 percent were willing to save, and opportunity to save is present but has low availability and accessibility. Willingness to save is conducive, but ability and opportunity to save were low. Therefore, rice farming households in selected barangays in Rizal, Palawan did not have conducive saving behavior.

Based on the results, it is recommended to address the lack of ability to save through equal access to publicly available farm machinery, additional training programs and seminars for other agricultural commodities, and financial literacy and management training and seminars. Lack of opportunity to save should also be addressed through promotion of savings products and services. Further studies on the aspects of saving behavior and credit behavior was also suggested.

Language

English

LC Subject

Rice Farming

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2022 A14 F35

Document Type

Thesis

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