Analysis on the Credit Needs and Behavior of Tilapia Grow-Out Farmers in Palakpakin Lake, San Pablo City

Date

6-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jaymee A. Cabangbang

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

Credit access and financial inclusion are seen as crucial factors towards achieving poverty reduction and economic development. For the agricultural sector specifically, an effective financing system is imperative to uplift the livelihood and well-being of the country's farmers and fisherfolk. In an industry with continuous decline in productivity such as the tilapia industry, credit is seen as a tool to mitigate losses. Given this, the study focused on assessing the credit needs and behavior of tilapia grow-out farmers in Palakpakin Lake, San Pablo City. Specifically, it: determined the credit needs of tilapia grow-out farmers; identified the factors affecting the credit needs of tilapia grow-out farmers; analyzed the credit behavior of tilapia grow-out farmer borrowers; determined the reasons for non-availment of credit among tilapia ghrow-out farmer non-borrowers; and identified the credit-related problems encountered by tilapia grow-out farmers.

Through personal interviews using pre-tested questionnaires, information on credit needs and credit behavior was collected from 44 tilapia grow-out farmer respondents. Of these respondents, 11 were farmer-borrowers and 33 were non-borrowers. Information obtained also established the socio-demographic and farm-specific profile of tilapia grow-out farmers in the area. The respondents' cashflow was used to estimate their capital requirements and credit needs for the following production cycle. Also, farmer-borrowers were assessed on their credit behavior which includes credit availment, credit utilization, and credit repayments. Farmer non-borrowers asked on their reasons for the non-availment of credit.

The cashflow analysis revealed that the 33 tilapia grow-out farmer-respondents have credit needs while only 11 have surplus cash inflow. Results also show that they did not fully utilize their areas of operation and failed to optimize usage of production inputs. It is important to note that the estimation of credit needs assumes full utilization of each farmer's operational area for the next production cycle. The results from the cashflow analysis proved that equity capital along with the profit from previous harvest are not enough to finance the next production cycle's farm operations.

Aside from the credit need of all farmer-respondents, their credit behavior was analyzed using descriptive statistics, credit utilization rate, and credit repayment rate. Data collected on reference showed that tilapia grow-out farmers prefer informal financial institutions as credit source and credit in-kind as credit type. It was also revealed that farmers need credit towards the end of the growing season which is the finisher stage of the production cycle. In terms of accessibility, results indicate that farmers have access to credit, but they do not utilize this access to satisfy their credit needs. For the 11 farmer borrowers, the credit utilization rate was high at 94.91 percent. Credit repayment was also high at 100 percent. The 33 farmer non-borrowers reported their non-availment was mainly due to sufficient capital. Overall, the credit needs, and behavior of tilapia grow-out farmers are dictated by poor financial capacity and credit aversion, respectively. Ultimately, the study revealed that tilapia grow-out farmers in Palakpakin Lake have aversion towards credit. Respondents showed negative perception and attitude towards credit.

Language

English

LC Subject

Credit analysis, Tilapia

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 L49

Notes

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Document Type

Thesis

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