Assessment of Credit Behavior of Tilapia Hatchery Operators in Bay, Laguna, 2018

Date

1-2020

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Bates M. Bathan

Committee Member

Bates M. Bathan, Antonio Jesus A. Quilloy, Agham C. Cuevas

Abstract

Tilapia hatchery operations can be capital intensive and access to credit allows for the purchase of inputs which could increase production and also profitability. The general objective of the study was to assess the credit behavior of tilapia hatchery operators in Bay, Laguna. It specifically aimed to describe the socio-economic characteristics and firm specific profile of the selected tilapia hatchery operator borrowers; to determine the credit sources and their reasons of choice for credit source; to analyze the tilapia hatchery operators' amount of agricultural credit availed, cost of credit, credit utilization rate, and loan repayment performance; to analyze the factors affecting the credit behavior of tilapia hatchery operator borrowers; and to identify the credit-related problems of the tilapia hatchery operators and recommend possible solutions.

A total of 68 respondents was selected using complete enumeration. Data collected were analyzed using the following tools: descriptive analysis, estimation of effective interest rate, binary logistic regression analysis, and Tobit regression analysis. The respondents were classified into formal (32) and informal (36) borrowers. The study revealed that the tilapia hatchery operators had the following characteristics: age of 48 years old, 10 years of formal schooling which was under high school level, 3,479 square meters of pond size, 63 percent of the operators were owner operators, four family members, PhP4,075 monthly household income, and 44 percent are member of an organization.

The credit behavior of the respondents was assessed through their choice of credit source, amount of agricultural credit availed, credit utilization rate, and loan repayment performance. Despite the high cost of borrowing from private moneylenders, they were still found to be the most accessed credit source in the area because of the fast release and convenience _in borrowing. Binary logistic regression analysis was used to determine the factors that affect the operator borrowers' source of credit and based on the results, age, years of formal schooling, tenure status, and household size significantly influence the choice of credit source. Tobit regression analysis was used to determine the different factors that affect the operator borrowers' amount of agricultural credit availed, credit utilization rate and loan repayment performance. Pond size and household income were the significant factors that affect the amount of agricultural credit availed by the operators. Years of formal schooling, tenure status, and household size significantly influence the credit utilization rate of the borrowers. Years of formal schooling, household size, and credit utilization rate were the significant factors that affect the loan repayment performance of the borrowers.

The study recommended that the formal sources of credit ease their credit availment procedure. These credit institutions should also conduct seminars or training in terms of proper loan utilization with the aid of farm record keeping to effectively assess current operations and plan future farm and household expenses. It is also recommended that borrowers plan the use of the income from their operations to ensure the repayment of their loans.

Language

English

LC Subject

Aquaculture

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2020 A14 D45

Document Type

Thesis

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