An Assessment of the Relationship Between Financial Literacy and Farm Productivity of Sure Aid Program Farmer-Beneficiaries in Naic, Cavite, 2023

Date

6-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Ruby Jane C. Estadilla

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

Improving farmers' financial literacy is essential for enhancing farm productivity while ensuring proper utilization of agricultural loans plays a crucial role in fostering prosperous farming. It is important to determine the relationship between financial literacy and the farm productivity of farmers in a loan program. This study aimed to assess the relationship between financial literacy and farm productivity among SURE Aid Program farmer-beneficiaries in Naic, Cavite. The objectives were to: 1) describe the socio-economic and farm characteristics of the SURE Aid Program farmer-beneficiaries in Naic, Cavite; 2) determine the financial literacy level of the SURE Aid Program farmer-beneficiaries in terms of their financial knowledge, financial behavior, and financial attitude; 3) identify the factors affecting the SURE Aid Program farmer-beneficiaries’ financial literacy level; 4) assess the loan utilization rate and farm productivity of SURE Aid Program farmer-beneficiaries; 5) determine the relationship between financial literacy and loan utilization of the SURE Aid Program farmer-beneficiaries; 6) determine the relationship between loan utilization and farm productivity of the SURE Aid Program farmer-beneficiaries; 7) determine the relationship between financial literacy and farm productivity of the SURE Aid Program farmer-beneficiaries; and 8) draw recommendations based on the results of the study. The necessary data were gathered through personal interviews of 69 rice-farmer respondents using pre-tested questionnaires.

Descriptive statistics were presented to describe the characteristics of the respondents along with their financial literacy, loan utilization, and farm productivity. The relationship between the farmer- beneficiaries’ socio-economic characteristics and their financial literacy level was determined using multinomial logit regression. While correlation analyses were utilized to explore the association between financial literacy, loan utilization, and farm productivity.

The study revealed a low level of financial literacy among the SURE Aid Program farmer- beneficiaries. The socioeconomic characteristics of the farmer-beneficiaries did not significantly influence

their financial literacy level. Most respondents fully utilized their loans, primarily for palay farming, although a substantial portion diverted fundsfor other purposes. The average farm productivity in Naic was lower compared to the provincial average. There was an inverse weak relationship between overall financial literacy and loan utilization. However, no significant relationships were found between financial literacy components and loan utilization, loan utilization and farm productivity, and financial literacy and farm productivity. Based on the results, the study recommends improving financial literacy, loan utilization, and enhancing agricultural practices to boost farm productivity among the farmer-borrowers. The recommendations include encouraging farmers to participate in financial education programs, availing of financial services, and adopting appropriate farming techniques.

Language

English

LC Subject

Farmers -- Economic conditions, Financial literacy

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 B57

Notes

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Document Type

Thesis

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