Financial Instruments and Services as Mechanism of Resilience for Typhoon-Affected Rice Farmers in Barangays of Bay, Laguna, 2016

Date

6-2021

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Marilyn M. Elauria

Committee Member

Antonio Jesus A. Quilloy, Agham C. Cuevas

Abstract

The general objective of the study to analyze the role of financial instruments and services as mechanism to disaster risk resilience in selected barangays of Bay, Laguna. Specifically the study (1) identify the significant damage of the shock––“habagat” on the farms of affected rice farmers; (2) describe the different financial instruments used by the affected rice farmers after being hit by the shock––“habagat”; (3) determine the factors that affected the rice farmers’ decision in to use various financial instruments after being exposed to the shock; (4) determine the relationship between resilience and socio-economic and farm characteristics, including use of financial instruments, income diversification, and sources of aid; and (5) recommend measures that can improve farmers’ resilience to future shocks

A total of 44 farmer-respondent whose homes and farm areas that had been reported and considered to have been “damaged” by the Local Department of Social Welfare and Development (DSWD) and Municipal Agricultural Office (MAO) was included in the study. The study was conducted in the selected barangays of the municipality of Bay, Laguna, namely San Antonio, Tagumpay, Sto. Domingo, Calo, San Isidro, and Maitim. The different financial instruments used by the respondents before, during, and after being exposed to different shocks were determined. They were also asked to answer their level of resilience measured by their predictive and demonstrated resilience. Results of the study showed that majority (43.2%) of the respondents scores fell under the range of 26 to 30, indicating that households felt that future shocks would have significant impacts on their economic status and living conditions, and only three respondents felt that they would not suffer at all from any of the shocks. For the demonstrated resilience, almost all (93.2%) of the households had no problem of accessing food. Twenty-five percent of the respondents had a full score of 105, suggesting that they did not make any drastic coping strategies like begging food or skipping meal. Based on the results of the linear regression, amounts of the respondents’ formal savings and loans, insurance, respondents’ educational attainment and years were proven to be significant for the predictive resilience; while amount of formal loans, social aid received from the government and friends or relatives, annual household income, educational attainment, and years in farming of significantly affected the demonstrated resilience of the respondents.

The recommended course of action is for farmers to save, either inside their homes or deposited in a bank, to serve as a reserve for future shocks. They are also encouraged to apply for a crop insurance, since having insurance had also been significant for their predictive resilience or feeling of the famers to be more confident to cope and recover from future shocks. Furthermore, social aid from the government had been a significant help for the farmers after being exposed to a shock, thus an enhanced promotional program to encourage farmers to save and be prepared in times of natural disasters is suggested. It is the role of the government, with the help of the municipal agricultural offices to continue giving social aids in form of money and/or cavans of palay and fertilizer.

Language

English

LC Subject

Fruit juices, Consumption (Economics)

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2021 A14 G85

Notes

Viewing access to electronic resources is restricted solely to UP Gmail accounts. Any access and share requests from external organizations and personal email accounts will be promptly declined.

Document Type

Thesis

Link to Full Text

Share

COinS