Assessing the Effect of E-Arise-Arbs Program on the Socio-Economic Condition of Beneficiaries in Laguna, 2019-2021

Date

6-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Ruby Jane C. Estadilla

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

Abstract

To make credit more accessible to agrarian reform beneficiaries, especially to those who were adversely impacted by risks and uncertainties, DAR, in collaboration with LBP, created a loan program named E-ARISE-ARBs. The main objective of this study was to assess the effect of the program on the socio-economic condition of beneficiaries in Laguna, specifically: (1) describe the operation and implementation of E-ARISE-ARBs program, (2) profile the socio-economic condition of beneficiaries, (3) assess the credit utilization rate and loan repayment performance of the beneficiaries, (4) analyze the effect of the program on the income and quality of life of beneficiaries, (5) determine the variables associated with the recovery of ARBs, and (6) provide recommendations to improve the implementation of E-ARISE ARBs program or similar credit programs based on the results of the study.

The study was conducted in two ARBOs in Laguna availing loans from E-ARISE- ARBs. Interviews were conducted with 68 ARBs, both beneficiaries and non-beneficiaries, who were affected by Typhon Ulysses. Descriptive analysis, degree of credit utilization, loan repayment rate analysis, cost and returns analysis, Mann-Whitney U test, and Fisher’s exact test were employed as analytical tools. Most of the respondents experienced crop damages. Hence, agri-enterprise loans were the type of loan availed by beneficiaries. Amount of loan applied ranged from PhP5,000 to PhP40,000. Beneficiaries were generally satisfied with the implementation of the program. Using Fisher’s Exact Test, it was found that loan repayment performance was proven to be positively related to degree of credit utilization. Regarding the effect of the program on net farm income and quality of life, results of the Mann-Whitney U Test showed that there was no significant difference between percent change in net farm income of beneficiaries and non-beneficiaries. However, using Fisher’s Exact Test, it was found that quality of life was positively associated with the loan program. Delinquency issues were raised by the cooperatives regarding the loan repayment of beneficiaries. Hence, it was recommended to underscore the adverse consequences of poor credit standing to beneficiaries with unpaid loans and create initiatives for them to participate in seminars about budgeting. Before extending the implementation of the program, it was recommended to conduct a thorough review on its implementation to ensure a significant positive impact on the beneficiaries' net farm income and standard of living. Additionally, there is a need to strengthen ARBOs' loan repayment policies prior to extending the program to address delinquency issues.

Language

English

LC Subject

Land reform, Social status

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 P47

Notes

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Document Type

Thesis

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