Credit Needs of Calamansi Seedling Nursery Operator-Borrowers in Talisay, Batangas, 2020

Date

7-2020

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Charis Mae T. Neric

Committee Member

Charis Mae T. Neric, Antonio Jesus A. Quilloy, Agham C. Cuevas

Abstract

Calamansi seedling production is one of the main sources of livelihood of the residents in Talisay, Batangas. However, the nursery operators in the area experienced insufficiency in working capital which limits them to continue planting operations. This study primarily analyzed the credit needs of calamansi seedling nursery operator-borrowers in Talisay, Batangas in 2020. Specifically, it aimed to: (1) describe the operating practices performed by calamansi seedling nursery operator-borrowers; (2) estimate the capital requirements and credit needed by calamansi seedling nursery operator-borrowers; (3) evaluate the credit sources, cost, utilization and repayment performance of calamansi seedling nursery operator-borrowers; and (4) identify the problems encountered by calamansi seedling nursery operator-borrowers and provide recommendation.

Fifty-five calamansi seedling nursery operator-borrowers in Talisay,Batangas were interviewed using a pre-tested questionnaire. The core analytical methods used in the study were descriptive analysis, cost and return analysis, cashflow analysis, credit need analysis, credit cost analysis, credit utilization analysis, and repayment performance analysis.

The operating practices involved in a calamansi seedling production were extracting and planting of calamandarin seeds;transplanting of calamandarin seedlings into different sizes of black polyethylene bags, and budding and pruning of calamandarin seedlings. All these operating practices were done for almost a year.

The respondents were divided into four categories depending on the types of seedlings they produce in order to compare their capital requirements and credit needs. Out of the 55 respondents, 47 of them produce calamansi and other fruit bearing tree seedlings (category A). Results showed that the projected capital requirements for the next production cycle for all the respondents averaged PhP108,051, while those respondents from category A need PhP94,976. On the other hand, the average amount of credit needed by all respondents for the months of May and June 2020 was PhP24,098, while the respondents from category A need PhP21,948.

More than half of the 55 respondents availed from informal credit sources such as large-scale nursery operators, private moneylenders, family, and friends. It was also found out that 93% of the calamansi seedling nursery operator-borrowers utilize their availed credit for calamansi seedling production. High loan repayment performance rate was observed because all of the respondents were able to pay their due on time.

Based on the findings of the study, the following recommendations were proposed: formal record keeping of the farm and non-farm financial activities, maximizing produced of the other types of seedlings especially fruit bearing trees, provision of seminars and training by the local government regarding budding procedure and other income generating activities in a nursery business, and provision of programs or services by the financial institutions specific to the financial needs of nursery operators.

Language

English

LC Subject

Agriculture, Agricultural Production

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2020 A14 L36

Document Type

Thesis

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