Evaluation of the Operational Performance of the Total Family Approach-Based Agricultural Loan Program in Magdalena, Laguna, 2019

Date

9-2022

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Cesar B. Quicoy

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

This study evaluated the operational performance of the Total Family Approach- based Agricultural Loan Program of the Local Government Unit (LGU) of Magdalena,

Laguna. This study determined the socio-economic characteristics of the loan beneficiaries from two independent groups, which are the crop farmers and livestock and poultry growers. The study also determined the frequency of the agricultural programs, aids, and technical assistance that the LGU of Magdalena offered. Furthermore, the study also assessed the perception of the farmers towards the agricultural program, most specifically on the extension programs, farm production assistance, and the agricultural program. It assessed whether there are variations between the level of satisfaction level of the beneficiaries between the two commodity groups towards the agricultural loan program. The study also evaluated the financial ratios, such as the loan collection rate, restructure rate, and loan rejection rate of the agricultural loan program. The policy recommendations were drawn from the results of the descriptive data, Kruskal-Wallis H Test, and financial ratios that were computed.

The descriptive analysis showed that, in terms of number of programs, the LGU offered more agricultural programs such as input distribution and technical seminars for the crop industry. The results also showed that there were more crop farmers who were approved for the loan program. Furthermore, data showed that during the past years, the LGU of Magdalena has not been able to expand the number of their beneficiaries for their agricultural loan program. Most of the livestock and poultry farmers said that the amount of loan was not enough for their farm operations. They also manifested that the loan maturity was not sufficient given the production period that they have. Through the use of Kruskal-Wallis H Test, it was discovered that there was a significant difference between the perception of the crop farmers and livestock and poultry growers in terms of loan sufficiency and loan maturity. The financial ratio showed that the loan collection rate was 92.31 percent, restructure rate for the crop industry was 3.57 percent, and the loan rejection rate was 90.29 percent for the year 2019.

The Total Family Approach-based agricultural program of Magdalena, Laguna was well executed and well-perceived by the whole municipality as it has been delivering beneficial agricultural programs for their agricultural sector. However, due to the relatively insufficient budget of the LGU for their program, they have been hindered to expand and increase their agricultural program. This was also the reason why the LGU has been heavily dependent on the programs of other national government agencies, like the Department of Agriculture. Therefore, reviving the farmer’s organization and association can help them to obtain aids and other subsidies from both private and public entities that will eventually help the whole agriculture sector of the municipality. Furthermore, in terms of internal accounting, it is imperative for the Accounting Office of Magdalena to revisit the past due loans and investigate on the bad debts in order to properly reflect the present financial ratios of the program.

Language

English

LC Subject

Loans—Government guaranty

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2022 A14 B37

Notes

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Document Type

Thesis

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